Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (November 2010)
16 slides from Lg Chem's roadshow presentation, Nov 8, 2010
Slide 1: 3Q 2010 Business Results & Outlook
3Q 2010 Business Results & Outlook November 2010
Slide 2: The business results for the third quarter of 2010 currently under audit review are
The business results for the third quarter of 2010 currently under audit review are presented here for investors’ convenience. Hence, please be advised that some of their contents may be altered in the course of audit. Forecasts and projections contained in this material are based on current busines
Slide 3: Table of Contents
Table of Contents LG Chem at a Glance 1 Strategic Performance Review 2 Differentiated Competitiveness 3 3Q 2010 Business Results 4 Divisional Results & Outlook 7 Appendix 9
Slide 4: LG Chem at a Glance
LG Chem at a Glance Impressive Revenue Scale… • LG Chem was started in 1947 and is Korea’s first and (KRW bn) largest chemical company with an established track of 20,000 over 60 years and annual revenues of KRW 15.5 trillion in .3% 2009. R : 15 15,000 CA G 15,521 14,555 14,473 10,000 11,414 • LG Ch
Slide 5: Strategic Performance Review
Strategic Performance Review ◆ Achieved continuous profit/revenue growth in all businesses - Operating Income Growth: 0.5 trillion KRW (’06) → 2.1 trillion KRW (’09) Profit - I&E Materials / Mobile Energy Revenue Growth: 1.6 trillion KRW (’06) → 4.2 trillion KRW (’09) Growth ◆ Emerging as a Leading
Slide 6: Differentiated Competitiveness: Distinctive Vertical Integration
Differentiated Competitiveness Distinctive Vertical Integration Vertical Integration Structure Co-existence of upstream and downstream products • One of few petrochemical companies around the globe with Naphtha Annual Usage: appx. 5 mil. MT a vertical integration structure, featuring both upstream a
Slide 7: Quarterly Business Results IFRS basis
Quarterly Business Results IFRS basis (Unit: KRW bn) 5.03tn 5.02tn 4.42tn 4.29tn 4.05tn 828 3.83tn 779 3.35tn 697 652 629 485 287 '09.1Q 2Q 3Q 4Q '10.1Q 2Q 3Q Sales Operating Profit 4 / 13
Slide 8: 3Q 2010 Business Results Income Statements
3Q 2010 Business Results Income Statements (Unit: KRW bn) Classification ’09.3Q ’10.2Q ’10.3Q YoY QoQ Sales 4,295 5,028 5,021 16.9% -0.1% Operating Profit 697 828 779 11.8% -5.9% (%) (16.2) (16.5) (15.5) Pre-tax Income 704 822 791 12.4% -3.8% (%) (16.4) (16.3) (15.7) Net Income 542 646 599 10.5% -7.
Slide 9: 3Q 2010 Business Results Financial Position
3Q 2010 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’09 ’10.3Q Change Classification ’09 ’10.3Q Change Asset 10,531 12,054 14.5% Total Liabilities 77.7 63.0 -14.7%p / Equity (%) Cash and 1,107 1,251 13.1% equivalent Debt / Equity (%) 40.7 28.
Slide 10: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis 3,765 3,768 ▣ Maintained high profitability thanks to differentiated product mix despite price adjustments of some products NCC/PO 3,062 29% 28% -NCC/PO : Despite the market fluctuations, stable margin ma
Slide 11: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials Business results Analysis (Unit: KRW bn) • Analysis ▣ A slight drop in profits due to weak demand in IT industry 1,300 - Optical : Earnings went down due to decreased 1,234 1,294 Materials utilization rate of customers and increased raw material cost stem
Slide 12: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit (Unit: KRW bn) 2009 2010 LGC 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 3,350 3,830 4,295 4,046 15,521 4,423 5,028 5,021 14,473 Operating Profit 485 629 697 287 2,098 652 828 779 2,259 Petrochemicals 2,582 2,847 3,062 2,959 11,450 3,309 3,765 3,768 10,842 NCC/PO 751
Slide 13: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit: KRW bn) (Unit: KRW bn) Classification ’09 ’10.3Q Classification ’09 ’10.3Q Total 2,411 2,140 Beginning 514 1,107 (Overseas Subsidiaries) (602) (796) 100% 100% Operating/Investing 1,515 696 266 163 KRW Currency 11% 8% Net Income 1,539 1,763
Slide 14: Appendix: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) ’10.3Q Classification ’08 ’09 ’10 Plan Accumulated New / Expansion 223 158 289 155 Petrochemicals Maintenance 103 132 174 122 Total 326 290 463 277 New / Expansion 270 472 670 559 I&E Maintenance 58 81 125 88 Materials Total 328 553 795 647 New / Expansio
Slide 15: Appendix: LG Chem Global Networks
Appendix LG Chem Global Networks 26 subsidiaries and representative offices around the world China • LGCCI (Holding Company in China) • Petrochemicals Plant - LG DAGU : PVC - LG YX : ABS, SBL - LGCC GZ : ABS&EP Comp’d - LGCC TJ : EP Comp’d Poland - LG BOHAI : EDC, VCM - LG BOTIAN : SBS LGCE WR : Pol
Slide 16: Appendix: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,557 1,540 2,871 1,519 2,783 1,480 2,748 2,709 1,454 1,458 2,652 1,408 1,409 2,596 2,535 1,364 2,490 2,499 1,328 1,314 1,328 1,295 2,361 1,256 1,278 1,269 1,255 1,247 1,255 1,320 1,218 1,280 1,165 1,997 2,014 1,238 1,126 1,904 1,931 1,943 1,939 1,950