Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (August 2014)
14 slides from Lg Chem's roadshow presentation, Aug 26, 2014
Slide 1: Business Market & Outlook
Business Market & Outlook August 2014 / 12
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 2Q 2014 Business Results 3 Divisional Results & Outlook 5 Appendix 7 / 12
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: 2Q 2014 Business Results - Income Statements
2Q 2014 Business Results Income Statements (Unit: KRW bn) Classification ’13.2Q ’14.1Q ’14.2Q YoY QoQ Sales 5,917 5,673 5,869 -0.8% 3.5% Operating Profit 502 362 360 -28.3% -0.7% (%) (8.5) (6.4) (6.1) Pre-tax Income 510 354 290 -43.1% -18.1% (%) (8.6) (6.2) (4.9) Net Income 401 286 227 -43.4% -20.7%
Slide 7: 2Q 2014 Business Results - Financial Position
2Q 2014 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’13 ’14.2Q Change Classification ’13 ’14.2Q Change Asset 17,447 17,664 1.2% Total Liabilities/ 48.8 49.3 0.5%p Cash and Equity (%) equivalents 1,909 1,859 -2.6% Borrowings / 25.7 26.0 0.3%p
Slide 8: Divisional Results & Outlook - Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis • Earnings declined due to delayed market recovery and strong Korean won 4,536 4,516 4,415 -NCC/PO : Maintained sound profitability thanks to tight supply of ethylene and seasonal demand increase NCC/PO 3
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 : Shipments increased with seasonal demand and expanded Materials high-profit products sales such as 3D-pol, acrylic polarizers 716 - Energy : Earnings improved by well-balanced supp
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 5,869 11,542 Operating Profit 409 502 516 316 1,743 362 360 722 Petrochemicals 4,353 4,536 4,426 4,300 17,614 4,415 4,516 8,931 NCC/PO 1
Slide 11: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’13 ’14.1H Classification ’13 ’14.1H Total 3,011 3,077 Beginning Cash 1,341 1,909 (Overseas Subsidiaries) (1,172) (1,112) 100% 100% Operating/Investing 813 178 KRW Currency 803 803 27% 26% Net Income 1
Slide 12: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’12 ’13 ’14 Plan ’14.1H New / Expansion 791 416 499 143 Petrochemicals Maintenance 177 213 394 105 Total 969 629 894 249 New / Expansion 253 269 454 67 I&E Maintenance 71 94 132 69 Materials Total 324 363 586 136 New / Expansion 431 104 76
Slide 13: Quarterly Price Trends
Appendix Appendix 분기별 제품가격 Quarterly 추이 Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,617 1,620 1,676 3,612 1,542 1,531 1,532 1,578 3,372 1,459 1,462 1,442 1,489 1,411 3,397 1380 1452 1361 1,356 1,434 1436 1429 1358 1420 1,404 2,830 13411,401 1,364 1,340 1,345 2,544 1,356 1,3191304 1,350 1,318 1328 2,510
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 1,629 1,610 1,588 1,576 1,576 1,574 2,089 2,065 2,070 2,000 2,000 1,551 1,534 1,548 1,548 1,536 1,600 1,476 1,524 1,570 1,578 1,586 1,602 1,966 1,990 1,977 1,933 1,926 1,528 1,944 1,541 1,540 1