Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (June 2014)
16 slides from Lg Chem's roadshow presentation, Jun 10, 2014
Slide 1: Business Market & Outlook
Business Market & Outlook June 2014
Slide 2: Disclaimer
Disclaimer The business results are subject to the IFRS(International Financial Reporting Standards) from 2010. In addition, operating profits are amended to reflect revisions of “K-IFRS, No. 1001” decided on 19th regular Financial Services Commission’s meeting on October 17th 2012 and “Guidance for
Slide 3: Table of Contents
Table of Contents LG Chem at a Glance 1 1Q 2014 Business Results 3 Divisional Results & Outlook 5 Appendix 7
Slide 4: LG Chem at a Glance
LG Chem at a Glance ＊ Revenue Growth • LG Chem was started in 1947 and is Korea’s first and largest chemical company with an established track of over 60 years 24,000 23,263 23,144 and annual revenues of KRW 23.1 trillion in 2013. 22,676 19,000 • LG Chem boasts multiple production facilities and an
Slide 5: Differentiated Competitiveness
Differentiated Competitiveness Vertical Integration Structure Co-existence of upstream and downstream products Naphtha Annual usage: appx. 6.0 mil MT One of few petrochemical companies around the globe with vertical integration structure, featuring both upstream and NCC Ethylene (2.0 mil MT/yr) down
Slide 6: 1Q 2014 Business Results: Income Statements
1Q 2014 Business Results Income Statements (Unit: KRW bn) Classification ’13.1Q ’13.4Q ’14.1Q YoY QoQ Sales 5,721 5,641 5,673 -0.8% 0.6% Operating Profit 409 316 362 -11.4% 14.5% (%) (7.1) (5.6) (6.4) Pre-tax Income 415 236 354 -14.6% 50.0% (%) (7.2) (4.2) (6.2) Net Income 340 177 286 -16.0% 61.7% 3
Slide 7: 1Q 2014 Business Results: Financial Position
1Q 2014 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’13 ’14.1Q Change Classification ’13 ’14.1Q Change Asset 17,447 18,288 4.8% Total Liabilities/ 48.8 56.4 7.6%p Cash and Equity (%) equivalents 1,909 2,147 12.5% Borrowings / 25.7 28.6 2.9%p
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis ▣ Earnings improved by differentiated product mix despite the slow recovery of market 4,353 4,300 4,415 -NCC/PO : Earnings improved with strong PE spread maintained by supply tightness amid maintenance sh
Slide 9: Divisional Results & Outlook: I&E Materials/Energy Solutions
Divisional Results & Outlook I&E Materials/Energy Solutions Business results Analysis (Unit: KRW bn) • Analysis ▣ I&E earnings decreased due to slow panel demand, while Energy Solutions recorded sound results thanks to operating ratio rises of mobile batteries - I&E : Recorded sluggish earnings due
Slide 10: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2013 2014 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 5,721 5,917 5,865 5,641 23,144 5,673 5,673 Operating Profit 409 502 516 316 1,743 362 362 Petrochemicals 4,353 4,536 4,426 4,300 17,614 4,415 4,415 NCC/PO 1,470 1,509 1,517
Slide 11: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’13 ’14.1Q Classification ’13 ’14.1Q Total 3,011 3,348 Beginning Cash 1,341 1,909 (Overseas Subsidiaries) (1,172) (1,324) 100% 100% Operating/Investing 813 -99 KRW Currency 803 803 27% 24% Net Income 1
Slide 12: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’12 ’13 ’14 Plan ’14.1Q New / Expansion 784 405 483 72 Petrochemicals Maintenance 226 224 410 56 Total 1,009 628 894 128 New / Expansion 242 254 410 34 I&E Maintenance 90 109 176 38 Materials Total 332 363 586 72 New / Expansion 395 96 64 2
Slide 13: Quarterly Price Trends
Appendix Appendix 분기별 제품가격 Quarterly 추이 Price Trends (Unit:U$/MT) 1,676 (Unit:U$/MT) 1,617 1,531 3,612 1,542 1,532 3,372 1,459 1,462 1452 1,411 1,489 3,397 1380 1,434 1436 1361 1358 1,356 1341 1,401 1420 2,830 1,340 1,404 1,364 1,345 1,319 1304 1,350 2,544 1,356 1,318 1328 2,510 2,461 1,274 1,277 1,
Slide 14: Monthly Price Trends
Appendix Appendix 분기별 제품가격 Monthly 추이 Price Trends (Unit:U$/MT) 1,720 (Unit:U$/MT) 1,676 1,686 1,632 1,630 1,588 1,580 1,580 1,551 1,548 1,545 1,536 2,164 1,476 1,534 1,524 1,580 1,486 1,570 2,075 2,089 2,065 1,476 1,528 2,000 2,000 1,926 1,513 1,966 1,990 1,428 1438 1,478 1,476 1,429 1,438 1,915 1,
Slide 15: Global Position of Key Products
Appendix Global Position of Key Products As of 1st quarter of 2014 Item Location Capa Global Rank Capa Additions ABS (Acrylonitrile-Butadiene-Styrene) Korea, China 1,390 KMT/Yr 1st* PVC (Polyvinyl Chloride) Korea, China 1,270 KMT/Yr 6th Oxo-Alcohol Korea (Yeosu, Naju) 299 KMT/Yr 10th AA (Acrylic Aci
Slide 16: Stock Information
Appendix Stock Information Shareholders & Market Cap Dividends (Unit: KRW bn) Classification ’12 ’13 Change LG Corp. Foreign Investors 33.5% 33.7% Net Income 1,506 1,271 -15.6% Institutional & Individual Investors 32.8% EPS(KRW) 20,318 17,211 -15.3% * Total Dividends 295 295* 0 Common Stock as of Ma