Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (May 2013)
16 slides from Lg Chem's roadshow presentation, May 2013
Slide 1: Business & Market Outlook
Business & Market Outlook May, 2013
Slide 2: Disclaimer
Disclaimer From the first quarter of 2012, this material shows business results and related substances by 3 divisions(Petrochemicals, I&E Materials and Energy Solution) and thus past figures are revised to a same basis. The business results are subject to the IFRS(International Financial Reporting S
Slide 3: Table of Contents
Table of Contents LG Chem at Glance 1 1Q 2013 Business Results 3 Divisional Results & Outlook 5 Appendix 7
Slide 4: LG Chem at a Glance
LG Chem at a Glance ＊ Impressive Revenue Scale… • 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 and annual revenues of KRW 23.3 trillion in 2012. 23,263 22,676 19,000 • LG Chem boasts multiple production facilities and
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 (2,000 KMT/yr) downs
Slide 6: 1Q 2013 Business Results: Income Statements
1Q 2013 Business Results Income Statements (Unit: KRW bn) Classification ’12.1Q ’12.4Q ’13.1Q YoY QoQ Sales 5,753 5,681 5,721 -0.6% 0.7% Operating Profit 447 364 409 -8.5% 12.4% (%) (7.8) (6.4) (7.1) Pre-tax Income 440 375 415 -5.8% 10.6% (%) (7.7) (6.6) (7.2) Net Income 381 292 340 -10.6% 16.5% 3 /
Slide 7: 1Q 2013 Business Results: Financial Position
1Q 2013 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’12 ’13.1Q Change Classification ’12 ’13.1Q Change Asset 16,581 17,511 5.6% Total Liabilities/ 54.0 61.1 7.1%p Cash and Equity (%) equivalents 1,341 1,557 16.1% Borrowings / 27.4 28.5 1.1%p
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis ▣ Earnings improved QoQ by increased shipment and higher 4,491 product price despite rising feedstock costs and slow recovery 4,353 4,201 -NCC/PO : Maintained profitability through increased productivity
Slide 9: Divisional Results & Outlook: I&E Materials/Energy Solution
Divisional Results & Outlook I&E Materials/Energy Solution Business results Analysis (Unit: KRW bn) • Analysis ▣ Despite sales decrease due to weak season, earnings improved thanks to new product sales increase and cost reduction - I&E : Recorded improved profits thanks to new product sales Material
Slide 10: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2012 2013 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 5,753 5,996 5,834 5,681 23,263 5,721 5,721 Operating Profit 447 499 601 364 1,910 409 409 Petrochemicals 4,491 4,521 4,366 4,201 17,579 4,353 4,353 NCC/PO 1,249 1,200 1,174
Slide 11: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’12 ’13.1Q Classification ’12 ’13.1Q Total 2,947 3,102 Beginning Cash 1,379 1,341 (Overseas Subsidiaries) (1,024) (1,070) 100% 100% Operating/Investing -143 61 KRW Currency 812 810 28% 26% Net Income 1
Slide 12: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’11 ’12 ’13 Plan ’13.1Q New / Expansion 664 784 549 105 Petrochemicals Maintenance 296 226 245 42 Total 960 1,009 795 147 New / Expansion 332 242 744 71 I&E Maintenance 103 90 135 23 Materials Total 434 332 878 94 New / Expansion 660 395 70
Slide 13: Quarterly Price Trends
Appendix Appendix Quarterly 분기별 제품가격 Price Trends 추이 (Unit:U$/MT) (Unit:U$/MT) 1,696 1,611 1,535 4,458 1,459 4,159 3,997 1,360 1,375 1,364 1,345 1,356 1,326 1,319 1,434 3,766 3,612 1,340 3,479 1,260 1,356 3,310 3,372 1,306 1,318 1,274 1,350 1,311 1,277 1,275 3,397 1,248 1,218 2,830 1,159 2,510 2,544
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,491 1,419 1,454 3,731 1,431 1,420 1,417 1,395 1,384 1,464 1,345 1,343 1,344 1,351 1,421 1,318 1,271 1,297 1,410 1,416 1,375 1,369 1,356 1,361 1,390 3,426 1,334 2,958 2,993 1,316 1,328 1,334 1,284 1,259 1,320 3,180 2,854 1,242 1,318 1,271 2,64
Slide 15: Global Position of Key Products
Appendix Global Position of Key Products As of 1st quarter of 2013 Item Location Capa Global Rank Capa Addition(’13) 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
Slide 16: Stock Information
Appendix Stock Information Shareholders & Market Cap Dividends (Unit: KRW bn) Classification ’11 ’12 Change LG Corp. Foreign Investors 33.5% 33.16% Net Income 2,170 1,510 -30.41% Institutional & Individual Investors 33.58% EPS(KRW) 29,360 20,384 -30.57% * Total Dividends 295 295* 0 Common Stock as o