Lg Chem Ltd. · KRX:051910
Lg Chem — Q3 2024 Earnings Presentation
19 slides from Lg Chem's earnings presentation, Oct 28, 2024
Slide 1: 3Q 2024 Earnings Release
Confidential 2024. 10. 28 3Q 2024 Earnings Release
Slide 2: Contents
Confidential Contents 3Q 2024 Business Results 3-4 Results & Outlook by Business 5-9 Appendix 10 - 17 Income Statements / Financial Position / Cash Flows CAPEX & R&D Expenses C&EN Global chemical firms Top 10 Brand Finance Global chemical brands Top 10 Petrochemical Divisions & Products Cathode Capa
Slide 3: Audit review and forward-looking statements notice
Confidential The business results 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. The business results are subject to the K-IFRS (Korea International Financial Reporting Standards)
Slide 4: 3Q 2024 Business Results: Sales & Profits Trends
Confidential 3Q 2024 Business Results Sales & Profits Trends (consolidated) (Unit: KRW bn) 2023 2024 Sales trend by business LG Chem 3Q 4Q 1Q 2Q 3Q (Unit: KRW bn) Sales 13,495 13,135 11,609 12,300 12,670 13,495 13,135 12,670 120 12,300 Operating 860 247 150 11,609 113 265 406 498 238 Profit 6.4% 1.9
Slide 5: 3Q 2024 Business Results: Financial Position
Confidential 3Q 2024 Business Results Financial Position (consolidated) Balance Sheet Financial Ratios (Unit: KRW tn) (Unit: %) 94.7% LG Chem 2023 2Q 2024 3Q 2024 90.2% 89.2% Liabilities / Equity Asset 77.5 84.2 88.8 Cash and 9.1 7.2 8.8 61.6% Equivalents 55.9% 53.6% Debts / Equity Liabilities 36.5
Slide 6: Results & Outlook by Business: Petrochemicals
Confidential Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Petrochemicals (Unit: KRW bn) 4,966 Results 4,813 4,455 6% 4,411 7% Marginal deficit attributed to temporary rise 4,260 5% 7% 7% 4% in costs of raw materials & freight charges 7% 8
Slide 7: Results & Outlook by Business: Advanced Materials
Confidential Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Advanced Materials (Unit: KRW bn) Results 1,714 1,728 1,712 1,583 Battery material shipments and sales prices slightly decreased QoQ. 1,319 Marginal QoQ decline in the overall prof
Slide 8: Results & Outlook by Business: Life Sciences
Confidential Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Life Sciences (Unit: KRW bn) Results Decline in profitability due to increased R&D costs; however, sales of major products such as diabetes treatments, infertility treatments, and
Slide 9: Results & Outlook by Business: Farm Hannong
Confidential Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Farm Hannong (Unit: KRW bn) Results Domestic sales of crop protection products grew marginally, however overall sales and profitability weakened YoY due to exit from the chemical f
Slide 10: Results & Outlook by Business: Energy Solution
Confidential Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Energy Solution (Unit: KRW bn) Results Increased sales due to expansion of European OEM supply volume, increased North American JV production and significant ESS growth. Improved p
Slide 11: Income Statements
Confidential Appendix Income Statements (Unit: KRW bn) 2023 2024 LG Chem 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q Sales 14,284 14,336 13,495 13,135 55,250 11,609 12,300 12,670 Cost of Sales 11,972 11,930 11,177 11,384 46,464 9,706 10,424 10,383 Gross Profit 2,312 2,405 2,318 1,750 8,786 1,904 1,876 2,288 (%) 16.2%
Slide 12: Financial Position
Confidential Appendix Financial Position (Unit: KRW bn) 2023 2024 LG Chem 1Q 2Q 3Q 4Q 1Q 2Q 3Q Assets 70,896 72,501 77,500 77,467 82,116 84,188 88,795 Cash and Equivalents 6,810 6,871 8,883 9,142 9,294 7,170 8,834 A/R 8,604 8,657 8,924 8,083 8,152 8,857 8,659 Inventory 11,970 11,145 10,608 9,375 9,6
Slide 13: Cash Flows
Confidential Appendix Cash Flows (Unit: KRW bn) 2023 2024 LG Chem 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q Beginning 8,512 6,810 6,871 8,883 8,512 9,142 9,294 7,170 Cash Balance Operating Activities 503 1,971 1,656 2,634 6,764 454 1,490 842 Operating Profit 804 618 860 247 2,529 265 406 498 Depreciation 922 977 99
Slide 14: CAPEX & R&D Expenses (excl. Energy Solution)
Confidential Appendix CAPEX & R&D Expenses (excl. Energy Solution) CAPEX R&D Expenses (Unit: KRW bn) (Unit: KRW bn) 3Q 2024 3Q 2024 LG Chem 2023 3Q 2024 LG Chem 2023 3Q 2024 (Cumulative) (Cumulative) Petrochemicals 1,464 160 658 Petrochemicals 232 61 182 Advanced Advanced 690 265 534 243 64 180 Mate
Slide 15: C&EN Global Chemical Firms Top 10
Confidential Appendix C&EN Global chemical firms Top 10 LG Chem leaps forward as a Global Top Player, 1st among Korean companies to break into Top 4 - Emphasis on the importance of growth in the battery material business and sustainability businesses such as HVO, 3HP, Bio-PA (bio-nylon) etc. Rank Up
Slide 16: Brand Finance Global Chemical Brands Top 10
Confidential Appendix Brand Finance Global Chemical brands Top 10 LG Chem's brand value is “KRW 5.8 trillion”, ranked among the top 2 strongest chemical brands globally. Rank Up/Down Company Brand Index 1 - 84.5 2 - 84.4 3 ▲3 80.8 4 ▼1 80.7 5 - 79.1 6 New 78.9 7 New 78.4 8 ▲2 75.1 9 New 74.9 10 ▼2 7
Slide 17: Petrochemical Divisions & Products (Capa) as of 3Q 2024
Confidential Appendix Petrochemical Divisions & Products (Capa) as of 3Q 2024 (Unit : 1,000 tons) NCC/PO C2 / C3 / BD / BZ BPA HDPE / LLDPE / PP LDPE / EVA (3,350 / 1,980 / 510 / 900) (505) (550 / 600 / 380) (300 / 160) PVC/ PVC Plasticizers Alcohol PC Caustic Soda Plasticizer (1,120) (175) (300) (1
Slide 18: Cathode Capa Plan
Confidential Appendix Cathode Capa Plan (Unit : 1,000 tons) United States 200 China 10 Korea 170 60 140 60 120 50 88 50 45 130 110 90 70 43 '22 '23 '24(p) '25(p) '26(p) ※ This is based on our business plan, and may differ from the actual capacity due to changes in the business environment and strate
Slide 19: Thank you
Confidential Thank you LG Twin Tower, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Korea Tel. 02-3773-1114 / www.lgchem.com Copyright ⓒ 2024 LG Chem. All Rights Reserved.