LG Chem Ltd. · KRX:051910
LG Chem — Q3 2003 Earnings Presentation
12 slides from LG Chem's earnings presentation, Oct 28, 2003
Slide 1: 3Q 2003 Results & Business Outlook
3Q 2003 Results & Business Outlook October 28, 2003
Slide 2: Table of Contents
Table of Contents 3Q03 Results 1 Business Results & Outlook 2 Appendix 6 This material was prepared only for the convenience of our investors when the external audit of the third quarter of 2003 was not yet completed. Hence, its contents may be amended upon the results of the audit. In addition, the
Slide 3: 3Q03 Results
3Q03 Results Despite the sluggish domestic economy and depressed consumption levels, the continued growth of core information and electronics businesses such as batteries and polarizers helped sales increase 4 % YoY, while operating profit decreased by 31 % YoY. Sales & Operating Profit Analysis of
Slide 4: Business Results & Outlook: Petrochemicals
Business Results & Outlook Petrochemicals Despite persistently depressed domestic consumption, sales decreased only slightly thanks to increased demand in China, and operating margins were maintained at over 9 %. Business Results Results Analysis & Outlook (Unit: KRW billion) Sales • Results Analysi
Slide 5: Business Results & Outlook: Performance Polymers
Business Results & Outlook Performance Polymers Although profitability is beginning to pick up after the second quarter, sluggish domestic demand and increasing prices of raw materials such as AN and BZ are putting pressure on our operating income. Business Results Results Analysis & Outlook (Unit:
Slide 6: Business Results & Outlook: Industrial Materials
Business Results & Outlook Industrial Materials With the sluggish construction industry and depressed domestic economy, sales decreased by 9 % and operating profit by 51 % YoY. Business Results Results Analysis & Outlook (Unit: KRW billion) • Results Analysis (3Q) Sales Operating Profit - The housin
Slide 7: Business Results & Outlook: Information & Electronic Materials
Business Results & Outlook Information & Electronic Materials With improved productivity of batteries and polarizers and overall increased sales of high value-added products, sales rose by 52 % and operating profit by 42 % YoY. Business Results Results Analysis & Outlook • Results Analysis (3Q) Sale
Slide 8: B/S & Cash Flow
Appendix B/S & CASH FLOW (Unit: KRW billion, %) (Unit: KRW billion) 2003 B/S ’02.12 ’03.09 ’03.12(E) 2002 1Q~3Q 2003(E) Assets 3,846.1 4,502.4 4,561.2 CASH OUT 497.8 1,068.5 1,012.0 Accounts and notes receivable (net)1) 311.1 409.8 356.5 Inventories 332.0 373.7 313.3 Investment 332.6 628.7 838.0 Inv
Slide 9: Sales & Operating Profit (Divisional Breakdown)
Appendix Sales & Operating Profit (Divisional Breakdown) (Unit: KRW billion) Sales Operating Profit ’02 ’03 1Q ’03.2Q ’03.3Q ’03 (E) ’02 ’03 1Q ’03 2Q ’03.3Q ’03 (E) Petrochemicals 1,664.2 447.8 449.7 428.0 1,791.5 150.7 56.1 23.9 39.4 154.0 PVC/Plasticizer 1,128.7 300.3 308.8 283.2 102.2 42.0 15.2
Slide 10: Balance and estimation of borrowings
Appendix Balance and estimation of borrowings (Unit : billion, %) Balance Dec 31, 2003(E) Dec 31, 2002 Sep 30, 2003 Change Total 1,291.6 1,809.2 517.6 1,618.5 (%) (100) (100) (100) KRW Currency 1,090.5 1,366.4 275.9 1,175.7 (%) (84) (76) (73) C P - 191.0 191.0 71.7 C B 1,030.0 1,170.0 140.0 1,100.0
Slide 11: CAPEX Plan and Result
Appendix CAPEX Plan and Result (Unit: KRW billion) ’02 Results ’03 1Q ~ 3Q ’03 Plan New/Expansion 7.8 4.2 6.9 Maintenance 32.9 18.4 24.5 Petrochemicals Equity Investment - - 0.2 Total 40.7 22.6 31.6 New/Expansion 21.2 29.6 41.8 Performance Maintenance 21.7 12.5 16.6 Polymers Equity Investment 22.4 1
Slide 12: Raw materials & Product price
Appendix Raw materials & Product price Raw material price trend Product price trend* (Unit:U$/Ton) (Unit:U$/Ton) 1056 ▲ 950 1,000 910 910 ABS 581 883 896 600 ▲ 463 ▲ 463 Ethylene 420 800 719 406 511 Benzene 683 387 443 625 650 LDPE 400 367 383 379 612 ▲ 598 PVC 386 672 353 600 612 607 340 350 EDC 56