LG Chem Ltd. · KRX:051910
LG Chem — Q3 2005 Earnings Presentation
14 slides from LG Chem's earnings presentation, Oct 26, 2005
Slide 1: 3Q 2005 Business Results & Outlook
3Q 2005 Business Results & Outlook Oct 26, 2005
Slide 2: Audit review and forward-looking statements notice
The business results for the 3rd quarter of 2005 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. Forecasts and projections contained in this material are based on current business
Slide 3: Table of Contents
Table of Contents 3Q 2005 Business Results 1 Divisional Results & Outlook 3 Subsidiaries’ Results & Outlook 6 ※ Merge : LG Daesan Petrochem 7 Appendix 8
Slide 4: 3Q 2005 Business Results: Income Statements
3Q 2005 Business Results Income Statements Non-Consolidated Consolidated (Unit : KRW bn) ’04 3Q ’05 3Q ’05 2Q QoQ ’04 3Q ’05 3Q ’05 2Q QoQ Sales 1,861 1,850 1,796 3.0 2,365 2,911 2,655 9.6 Operating Profit 135 92 86 266 239 179 7.6 33.6 (%) (7.3) (5.0) (4.8) (11.3) (8.2) (6.7) Recurring Profit 222 1
Slide 5: 3Q 2005 Business Results: Balance Sheets
3Q 2005 Business Results Balance Sheets Non-Consolidated Consolidated (Unit : KRW bn) ’04 ’05 3Q ’04 ’05 3Q Assets 5,680 5,681 6,897 7,336 (Cash and equivalents) 414 196 528 561 Liabilities 3,484 3,344 4,196 4,421 (Borrowings) 1,980 1,994 2,591 2,756 Shareholder’s 2,195 2,337 2,701 2,915 Equity Tota
Slide 6: Divisional Chemicals & Polymers
Divisional Results & Outlook Chemicals & Polymers Business Results Analysis & Outlook (Unit : KRW bn) • 3Q Analysis - PVC worsened by the competition with Carbide PVC of China 1,113 1,070 1,051 and weak domestic demand 32 - ABS improved thanks to the stabilization of raw material prices 36 38 (i.e.
Slide 7: Divisional Industrial Materials
Divisional Results & Outlook Industrial Materials Business Results Analysis & Outlook (Unit : KRW bn) • 3Q Analysis 507 518 536 - Profitability continued to improve after hitting the bottom in the 4Q 2004. · Increase outsourcing proportion of production (Approximately 60%) 41 40 42 · Stabilization o
Slide 8: Divisional I & E Materials
Divisional Results & Outlook I & E Materials Business Results Analysis & Outlook • 3Q Analysis (Battery) (Unit : KRW bn) - Reflection of the 2Q’s extra portion of special expenses 313 320 277 concerning the quality problem. - Sales increased due to the re-commencement of the operation 27 after the s
Slide 9: Subsidiaries' Results & Outlook
Subsidiaries’ Results & Outlook Business Results Analysis & Outlook LG Petrochemical ’04 3Q ’05 3Q ’05 2Q - Sales increased on the back of BPA production and high (Unit : KRW bn) product prices. Sales 487 543 492 · Propylene: U$ 906 (’04 3Q) → 967 (’05 3Q) LG Operating · HDPE : U$ 1,015 (’04 3Q) →
Slide 10: Merge: LG Daesan Petrochem
※ Merge : LG Daesan Petrochem Financials Merger Overview ◆ Financial Structure (Sep. ’05) ◆ Date : Jan. 1, 2006 (Unit : KRW bn) S ales O/P EBITDA ◆ Method : Income 55 - A small-scale merger of LG Daesan 1,210 217 S t at emen (4 .5) ◆ Ratio : 1:0 on the “no capital increase” basis Balance S heet Asse
Slide 11: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit Unit : KRW bn) 2004 2005 1Q 2Q 3Q 4Q Sum 1Q 2Q 3Q 4Q Sum Sales 1,609.1 1,754.1 1,861.4 1,902.8 7,127.4 1,868.9 1,795.7 1,849.8 5,514.4 Operating Profit 169.1 133.9 135.0 85.0 522.9 141.4 85.6 92.1 319.1 Chemicals & Polymers 936.5 988.7 1,112.9 1,114.3 4,152.3 1,160.
Slide 12: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) Balance ’05 (E) ’04 ’05 3Q ’04 ’05 3Q Changes 1,979.7 1,994.4 14.7 1,941.6 Total Net Income 536.4 290.0 (100%) (100%) (100%) KRW 1,667.6 1,577.9 △89.7 1,527.9 Depreciation 333.2 259.2 Currency (84%) (79%) (79%) C P 150.0 100.0 △ 50
Slide 13: Appendix: Capex Plan & Results
Appendix Capex Plan & Results (Unit : KRW bn) ’03 Results ’04 Results ’05 3Q ’05 Plan New/Expansion 43.7 11.8 19.6 57.3 Chemicals & Maintenance 51.4 52.7 47.7 76.8 Polymers Equity Investment 11.5 6.6 25.0 37.8 Total 106.6 71.1 92.3 171.8 New/Expansion 9.4 4.9 15.7 34.0 Industrial Maintenance 39.0 42
Slide 14: Appendix: Price Trend
Appendix Price Trend Vinyls Styrenics (Unit:U$/MT) (Unit:U$/MT) 1,497 1,469 1,099 1,437 1,043 1,067 1,412 1,364 1,330 970 1,237 945 1,185 841 841 898 887 1,123 1,115 1,084 1,075 790 760 1,023 775 976 984 786 755 723 786 949 902 933 620 650 740 850 818 740 732 809 600 727 552 542 607 696 698 527 505