Lg Chem Ltd. · KRX:051910
Lg Chem — Q3 2018 Earnings Presentation
14 slides from Lg Chem's earnings presentation, November 2018
Slide 1: 3Q 2018 Business Results & Outlook
3Q 2018 Business Results & Outlook November, 2018
Slide 2: Disclaimer
Disclaimer 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). F
Slide 3: Table of Contents
Table of Contents 3Q 2018 Earnings Summary 1-2 Results & Outlook by Business 3-5 Appendix 6-11 - Sales & Operating Profit by Business - Borrowings & Cashflow - CAPEX / R&D Expenses - Ethylene/PE Demand & Supply - Quarterly Price Trends - Monthly Price Trends / 12
Slide 4: 3Q 2018 Business Results Income Statements
3Q 2018 Business Results Income Statements (Unit: KRW bn) Classification 3Q ’17 2Q ’18 3Q ’18 YoY QoQ Sales 6,397 7,052 7,235 13.1% 2.6% Operating 790 703 602 Profit -23.7% -14.3% (%) (12.3) (10.0) (8.3) EBITDA 1,137 1,065 975 -14.2% -8.5% (%) (17.8) (15.1) (13.5) Pre-tax Income 702 644 485 -30.9% -
Slide 5: 3Q 2018 Business Results Financial Position
3Q 2018 Business Results Financial Position Balance Sheet Financial Ratios (Unit: KRW bn) (Unit: %) ’17 1Q’18 2Q’18 3Q’18 ’17 1Q’18 2Q’18 3Q’18 Change Change (End) (End) (End) (End) (End) (End) (End) (End) Asset 25,041 26,416 27,399 28,419 3.7% Debt / Equity 18.6 25.7 30.1 30.7 0.6%p Cash and 2,779
Slide 6: Results & Outlook by Business: Basic Materials & Chemicals
Results & Outlook by Business Basic Materials & Chemicals Performance Breakdown Analysis & Outlook (Unit: KRW bn) Analysis • Spread decreased due to increasing of feedstock prices and 4,671 4,649 weaker demand because of trade war 4,316 • Increased sales and improved profitability in Acrylate/SAP by
Slide 7: Results & Outlook by Business: I&E Materials/Energy Solutions
Results & Outlook by Business I&E Materials/Energy Solutions Performance Breakdown Analysis & Outlook (Unit: KRW bn) Analysis • Energy Sales was posted historic-high and profitability was improved Solutions from an increase in EV sales and IT & New Application Battery 1,704 • I&E Turnaround was made
Slide 8: Results & Outlook by Business: Life Sciences/Farm Hannong
Results & Outlook by Business Life Sciences/Farm Hannong Performance Breakdown Analysis & Outlook (Unit: KRW bn) Analysis • Life Sales was slightly decreased due to seasonality Sciences 151 • Farm Profitability was declined YoY caused by rising of feedstock Hannong prices Life Sciences 139 135 188 F
Slide 9: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2016 2017 2018 LG CHEM 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q Sales 4,874 5,219 5,054 5,512 20,659 6,487 6,382 6,397 6,432 25,698 6,554 7,052 7,235 Operating Profits 458 612 460 462 1,992 797 727 790 615 2,928 651 703 602 (%) 9.4% 11.
Slide 10: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Debt Cashflow (Unit : KRW bn) (Unit: KRW bn) Classification ’17 1Q’18 2Q’18 3Q’18 Classification 2017 1Q’18 2Q’18 3Q’18 (End) (End) (End) (End) Beginning Cash 2,207 2,779 3,132 2,830 Total 3,045 4,236 5,114 5,300 Operations/Investment 1,337 -831 -662 289 Activities KR
Slide 11: CAPEX & R&D expenses
Appendix CAPEX & R&D expenses CAPEX R&D expenses (Unit: KRW bn) (Unit: KRW bn) Classification ‘16 ‘17 1Q ‘18 2Q ‘18 3Q ‘18 Classification 2016 2017 1Q ‘18 2Q ‘18 3Q ‘18 New / Expansion 103 324 116 229 182 Basic Basic Materials & 150 164 40 43 47 Materials & Maintenance 289 345 49 104 114 Chemicals C
Slide 12: Ethylene/PE Demand & Supply
Appendix Ethylene/PE Demand & Supply Ethylene Polyethylene (Unit : Million Tons) (Unit : Million Tons) 220 100% 150 200 120% 180 90% 160 100 140 100% 120 80% 100 80 50 60 80% 70% 40 20 0 60% 0 60% '17 '18(e) '19(e) '20(e) '21(e) '22(e) '17 '18(e) '19(e) '20(e) '21(e) '22(e) Demand (Global) Supply (G
Slide 13: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,334 1,331 1,351 2,024 2,018 2,009 1,285 1,305 1,963 1,230 1,228 1,898 1,942 1,896 1,196 1,180 1,213 1,182 1,887 1,221 1,793 1,227 1,204 1,136 1,745 1,929 1,165 1,100 1,170 1,167 1,673 1,094 1,625 1,090 1,099 1,093 1,114 1,
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 1,374 1,3691,3851,380 1,345 1,3401,336 1,321 1,2801,291 1,288 1,287 1,288 1,2231,235 1,247 1,268 1,2361,219 1,238 1,205 1,215 1,2201,210 1,1901,1821,173 1,165 1,248 1,165 1,128 1,176 1,219 1,212 1,195 1,189 1,136 1,151 1,118 1,1731,1661,1