Lg Chem Ltd. · KRX:051910
Lg Chem — BofA IR Conference 2023
38 slides from Lg Chem's conference presentation, May 16, 2023
Slide 1: LG Chem, Thriving in Chaos
Confidential LG Chem, Thriving in Chaos Chief Executive Officer, LG Chem Hak Cheol (H.C.) Shin May 16, 2023 ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 2: Unprecedented External Changes: Seismic, Unpredictable & Simultaneous
Confidential Unprecedented External Changes : Seismic, Unpredictable & Simultaneous Climate Change Energy Transition Pandemics Global Inflation Trade Conflict Russia-Ukraine War ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 3: LG Chem Four Corporate Initiatives (Feb, 2019)
Confidential LG Chem Four Corporate Initiatives (Feb, 2019 ) 01 02 03 04 Portfolio Shift Innovation & Efficiency Global/Contemporary to Future Differentiation Everywhere Culture Mega-Trend ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 4: 2020 Covid 19 Pandemic – LG Chem's Crisis Management Principle
Confidential 2020 Covid 19 Pandemic – LG Chem’s Crisis Management Principle ( Feb, 2020 ) Control What Don’t Mortgage Preserve Cash We Can Control the Future ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 5: Global No.3 Brand Value
Confidential LG Chem Brand Value Global No.3 荣盛石化股份有限公司 RONGSHENG PETROCHEMICAL ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 6: LG Chem Revenue Growth for the Last 4 Years
Confidential LG Chem Revenue Growth for the Last 4 Years 2018 2022 52 KRW tn 1% FarmHannong 2% Life Sciences 14% Advanced Materials 28 KRW tn CAGR 2% 2% 17% 45% Energy Solution 15% 22% 59% 38% Petrochemicals ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 7: LG Chem Market Capitalization Change for the Last 4 Years
Confidential LG Chem Market Capitalization Change for the Last 4 Years End of 2018 As of 2023 (Unit : KRW tn) 55 25 As of April 28, 2023 (LG Chem Only) As of Dec 28, 2018 (Including Battery business unit) ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 8: LG Chem, Prospering in the Pandemic
Confidential LG Chem, Prospering in the Pandemic Global Top 100, Whose Market Cap Grew the Most During Pandemic ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 9: LG Chem Major Events from 2019 to 2022
Confidential LG Chem Major Events from 2019 to 2022 01 02 03 Successful LG Energy Solution Three New Growth Pandemic Recovery Split-off Drivers Launched (2020) (2021) 04 05 06 07 2050 Carbon Digital Global Business Net-Zero Declared Significant Transformation Service Center Portfolio Actions (Firstl
Slide 10: LG Chem's EV Battery Business Chronology
Confidential LG Chem’s EV Battery Business Chronology 1995 Started Lithium-Ion Battery Development 1999 Commercialized Small Battery 2000 EV battery Development Started 2009 HEV Lithium-Ion Battery Commercialized (World’s first) 2010 PHEV Lithium-Ion Battery Commercialized (World’s first) 2022 LG En
Slide 11: To Global Science Company
Confidential LG Chem’s Exciting Transformation From Petrochemical Company To Global Science Company ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 12: LG Chem's 3 Future Growth Drivers
Confidential LG Chem’s 3 Future Growth Drivers Battery Sustainability Innovative Materials Business New Drugs ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 13: LG Chem's 3 Future Growth Drivers
Confidential LG Chem’s 3 Future Growth Drivers Battery Sustainability Innovative Materials Business New Drugs ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 14: Changes in EV Industry
Confidential BATTERY MATERIALS Changes in EV Industry 1. EV Penetration & EV Segment 2. EV Market Regionalization 50% (19%) CRMA IRA China 14% Volume (63%) (19%) (53%) (28%) Entry (17%) 2022 2030 ※ Source : Market Data & Company Estimation ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 15: Moving towards Global Top Comprehensive Battery Materials Company
Confidential BATTERY MATERIALS Moving towards Global Top Comprehensive Battery Materials Company Cathode Separator Additional New Materials, Battery New Business Materials ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 16: LG Chem's Leadership in Cathode
Confidential BATTERY MATERIALS LG Chem’s Leadership in Cathode 1. Technology Leadership 2. Market Leadership 2. Market Leadership 3. Metal Sourcing 3. Metal Leadership Sourcing Leadership Maintaining Developing Leadership More Cost-efficient in High-Ni Cathode Solution • Maximization of Energy Densi
Slide 17: LG Chem's Leadership in Cathode
Confidential BATTERY MATERIALS LG Chem’s Leadership in Cathode 1. Technology Leadership 1. Technology Leadership 2. 2. Market Market Leadership Leadership 3. Metal Sourcing 3. Metal Leadership Sourcing Leadership Expansion of Capacity Diversification of Customer Portfolio (Unit : K ton) 470 40% LG E
Slide 18: LG Chem's Leadership in Cathode: And More
Confidential BATTERY MATERIALS LG Chem’s Leadership in Cathode 1. Technology Leadership 1. Technology Leadership 2. Market Leadership 2. Market Leadership 3. Metal Sourcing Leadership Securing supply chain for stable supply and higher profitability & Setting up recycle eco-system across the world Ch
Slide 19: LG Chem's Expansion in Separator
Confidential BATTERY MATERIALS LG Chem’s Expansion in Separator No.1 Coating Technology Partnership Capacity Expansion with Toray across the World ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 20: Additional Battery Materials & New Business Opportunities
Confidential BATTERY MATERIALS Additional Battery Materials & New Business Opportunities Additional New Materials, Battery Materials New Business • CNT • Pure Silicon Anode • Anode Binder • Electrolyte for Solid State Battery • Cathode Dispersant • Advanced Battery Materials ⓒ 2023 LG Chem, Ltd. All
Slide 21: Global Top Comprehensive Battery Materials Company
Confidential BATTERY MATERIALS Global Top Comprehensive Battery Materials Company Revenue Outlook for Battery Materials (Unit : KRW tn) 30.0 14.0 4.7 2022 2026 2030 2030 ※ The estimated amount of the business target is based on business plan and may differ from the actual amount due to changes in th
Slide 22: LG Chem's 3 Future Growth Drivers
Confidential LG Chem’s 3 Future Growth Drivers Battery Sustainability Innovative Materials Business New Drugs ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 23: Changing Petrochemical Business more towards Sustainability Business
Confidential SUSTAINABILITY BUSINESS Changing Petrochemical Business more towards Sustainability Business Bio Recycled Material Renewable /Biodegradable Energy Materials Material • Mechanical Recycling • PBAT (MP: 2024, 50K ton) • Materials for Solar Panels Expansion of Products Foundation of Ecosys
Slide 24: PLA
Confidential SUSTAINABILITY BUSINESS Changing Petrochemical Business more towards Sustainability Business PLA(Poly Lactic Acid) Made with lactic acid produced by fermenting corn PLA Biodegradable Application (Ex. Disposable plastic utensils) decomposed within a few months JV agreement with ADM (Aug,
Slide 25: Changing Petrochemical Business more towards Sustainability Business
Confidential SUSTAINABILITY BUSINESS Changing Petrochemical Business more towards Sustainability Business Revenue Outlook for Sustainability Business (Unit : KRW tn) 8.0 4.0 1.9 2022 2026 2030 2030 ※ The estimated amount of the business target is based on business plan and may differ from the actual
Slide 26: LG Chem's 3 Future Growth Drivers
Confidential LG Chem’s 3 Future Growth Drivers Battery Sustainability Innovative Materials Business New Drugs ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 27: Global Pharmaceutical Company with Innovative New Drugs
Confidential INNOVATIVE NEW DRUGS Global Pharmaceutical Company with Innovative New Drugs Expanding Pipelines Cell Therapy Oncology & Diabetes & Immunology Metabolism Global Pharmaceutical Company Preclinical Phase1 Phase2 Phase3 • Specialized in Oncology • 5 Innovative New Drugs by 2030 Enhancing C
Slide 28: Successful M&A Closed - Aveo Oncology
Confidential INNOVATIVE NEW DRUGS Successful M&A Closed - Aveo Oncology Innovative Oncology Drug Developer in the U.S. Fotivda® for RCC treatment launched *RCC : Renal Cell Carcinoma Former NASDAQ Listed Company with 2022 Revenue over USD 100M Consolidated into LG Chem in Feb, 2023 ⓒ 2023 LG Chem, L
Slide 29: Revenue Outlook for LG Chem's 3 Future Growth Drivers
Confidential Revenue Outlook for LG Chem’s 3 Future Growth Drivers (Unit : KRW tn) 40 2.0 Innovative New Drugs 8.0 Growth in Sustainability Business 8 YEARS X6 Battery Materials 18 4.0 30.0 6.6 14.0 1.9 4.7 2022 2026 2030 ※ The estimated amount of the business target is based on business plan and ma
Slide 30: Revenue Outlook for LG Chem (Excluding LG ES)
Confidential Revenue Outlook for LG Chem (Excluding LG ES) (Unit : KRW tn) 70 45 31 2022 2026 2030 ※ The estimated amount of the business target is based on business plan and may differ from the actual amount due to changes in the business environment and strategy ⓒ 2023 LG Chem, Ltd. All rights res
Slide 31: LG Chem's Dedication to the Sustainable Growth
Confidential LG Chem’s Dedication to the Sustainable Growth ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 32: LG Chem's Sustainability Approach
Confidential LG Chem’s Sustainability Approach 1. 2050 Net Zero Commitment 2. Build Sustainability Business 3. Global Leadership ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 33: 2050 Net-Zero Commitment
Confidential 2050 CARBON NET ZERO COMMITMENT 2050 Net-Zero Commitment Executing Net-Zero Strategies, reducing CO2 in Scope 1 & 2 CO2 Emissions (Unit : ton/yr) Reduce Energy Efficiency Innovation 20M Avoid 9.5M Renewable Energy 100% for Overseas by 2030, 6.6M for domestic by 2050 Net-Zero Compensate
Slide 34: LG Chem's Actions to Achieve 2050 Net Zero
Confidential 2050 CARBON NET ZERO COMMITMENT LG Chem’s Actions to Achieve 2050 Net Zero 1. Renewable Energy Transition 2. Low Carbon Emitting Process Development 3. Fuel Switching to Low Carbon Fuel 4. Feedstock Switching to Biofuel 5. CCU Technology 6. Portfolio Shifting to Low Carbon (Applying ‘In
Slide 35: Expanding to measuring Scope 3 emission
Confidential 2050 CARBON NET ZERO COMMITMENT Expanding to measuring Scope 3 emission Completing Building up Partnership Reducing CO2 LCA in 2023 for Carbon Reduction Model in Scope 3 ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 36: Launch of Integrated Green Brand 'LET Zero'
Confidential BUILD SUSTAINABILITY BUSINESS Launch of Integrated Green Brand ‘LET Zero’ ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 37: Global Leadership in Sustainability
Confidential GLOBAL LEADERSHIP Global Leadership in Sustainability World Economic Forum The Alliance of CEO Climate Leaders Largest CEO-led Climate Alliance In the World 119 Companies 12 Industries 27 Countries ⓒ 2023 LG Chem, Ltd. All rights reserved.
Slide 38: Thank You
Confidential Thank You ⓒ 2023 LG Chem, Ltd. All rights reserved.