Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2018 Earnings Presentation
20 slides from Lg Chem's earnings presentation, Jan 30, 2019
Slide 1: 4Q 2018 Business Results & Outlook
January 30, 2019 4Q 2018 Business Results & Outlook
Slide 2: 2018 Earnings Summary Results & Outlook by Business Business Plan for 2019
2018 Earnings Summary 4~6 Results & Outlook by Business 7~9 Business Plan for 2019 10 Appendix 11~20 - Sales & Operating Profit by Business - CAPEX / R&D Expenses - Income Statements / Financial Position / Cash Flows - Dividend Summary - Ethylene / PE Demand & Supply - Quarterly / Monthly Price Tren
Slide 3: investors’ convenience. Hence, please be advised that some of their business environments and management’s
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). Forecasts an
Slide 4: 2018 Business Results
2018 Business Results Sales Operating Profit(%) (Unit:KRW tn) (Unit:KRW bn) 28.2 +9.7% 2016 2017 2018 YoY 25.7 +24.2% 1,992 2,929 2,246 LG Chem -23.3% 20.7 (9.6%) (11.4%) (8.0%) Basic 2,139 2,808 2,131 18.0 Materials & -24.1% Chemicals (14.8%) (16.1%) (11.8%) 17.4 Basic Energy -49 29 209 Materials &
Slide 5: 4Q 2018 Business Results: Income Statements
4Q 2018 Business Results Income Statements (Unit:KRW bn) 2017 2018 YoY QoQ 4Q 1Q 2Q 3Q 4Q Sales 6,432 6,554 7,052 7,235 7,343 +14.2% +1.5% OP 615 651 703 602 290 -52.9% -51.9% (%) 9.6% 9.9% 10.0% 8.3% 3.9% EBITDA 972 1,006 1,065 975 684 -29.6% -29.9% (%) 15.1% 15.3% 15.1% 13.5% 9.3% Pre-tax Income 4
Slide 6: 4Q 2018 Business Results: Financial Position
4Q 2018 Business Results Financial Position Balance Sheet Financial Ratios (Unit:KRW tn) 2016 2017 2018 YoY 2016 2017 2018 YoY Asset 20.49 25.04 28.94 +15.6% Debt / Equity 20.6% 18.6% 30.7% +12.1%p Cash and Net Debt / 2.21 2.78 2.56 -8.0% 4.9% 1.6% 16.0% +14.4%p Equivalents Equity Interest Liabiliti
Slide 7: Results & Outlook by Business: Basic Materials & Chemicals
Results & Outlook by Business Basic Materials & Chemicals (Unit:KRW bn) 4,671 4,649 Sales 4,297 4,359 4,357 30% 30% 28% 27% NCC/PO 28% 13% 13% 14% PVC/Plasticizer 12% 13% 29% 28% 28% ABS 26% 26% EP 8% 8% 7% 7% 7% 10% 10% 11% Acrylate/SAP 9% 9% Rubber/ 9% 9% 10% 11% 12% Specialty Polymers 4Q 17 1Q 18
Slide 8: Results & Outlook by Business: Energy Solutions / I&E Materials
Results & Outlook by Business Energy Solutions / I&E Materials (Unit:KRW bn) 2,077 1,704 Energy Solution 1,494 1,253 1,245 I&E Materials 801 759 765 847 902 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Operating Profit Energy Solution 14 2 27 84 96 (%) (1.1%) (0.2%) (1.8%) (4.9%) (4.6%) 18 -10 -22 12 -9 I&E Materi
Slide 9: Results & Outlook by Business: Life Sciences / Farm Hannong
Results & Outlook by Business Life Sciences / Farm Hannong (Unit:KRW bn) 131 151 Life Sciences 135 158 148 237 188 Farm Hannong 92 83 68 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 Operating Profit Life Sciences 1 7 16 13 14 (%) (0.6%) (5.3%) (10.5%) (9.8%) (8.6%) -19 45 11 -19 -23 Farm Hannong (-27.9%) (19.2%) (
Slide 10: 2019 Business Outlook / CAPEX
2019 Business Outlook Business Outlook / CAPEX Business Outlook CAPEX (Unit:KRW tn) (Unit:KRW tn) 32.0 +13.5% Basic Materials & 1.8 28.2 Chemicals +9.7% 25.7 Energy Solutions 3.1 +24.2% 20.7 18.4 18.0 I&E Materials 0.5 Basic 17.4 Materials & Chemicals 14.4 Energy Life Sciences 0.1 Solutions I&E Mate
Slide 11: Sales & Operating Profits by Business
Appendix Sales & Operating Profits by Business (Unit:KRW bn) 2016 2017 2018 LG CHEM 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 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 7,343 28,183 Operating Profits 458 613 460 462 1,992 797 727 790 615 2,929 651 703 602 290 2,2
Slide 12: CAPEX / R&D Expenses
Appendix CAPEX / R&D Expenses CAPEX R&D Expenses (Unit:KRW tn) (Unit:KRW bn) 4.6 1,062 1.5 178 893 Basic Materials & Chemicals 686 164 Energy 320 2.5 Solutions 150 2.0 I&E Materials 0.7 1.9 299 0.4 Life Sciences 276 202 0.6 1.0 Common 181 (including 124 0.4 0.4 Farm Hannong) 161 0.2 0.1 96 0.2 0.1 9
Slide 13: Income Statements
Appendix Income Statements (Unit:KRW bn) 2016 2017 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 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 7,343 28,183 Cost of Sales 3,940 4,074 4,091 4,490 16,595 5,073 5,011 4,940 5,110 20,135 5,212 5,580 5,868 6,177 22,837 93
Slide 14: Financial Position
Appendix Financial Position (Unit:KRW bn) 2016 2017 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Assets 18,860 19,826 20,040 20,487 22,171 22,671 23,708 25,041 26,416 27,399 28,419 28,944 Cash and 3,164 2,649 2,878 2,207 1,909 2,107 2,400 2,779 3,132 2,830 3,333 2,557 Equivalents A/R 3,077 3,199 3,178 3
Slide 15: Cash Flows
Appendix Cash Flows (Unit:KRW bn) 2016 2017 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Cash at Beginning 2,694 3,164 2,649 2,878 2,694 2,207 1,909 2,107 2,400 2,207 2,779 3,132 2,830 3,333 2,779 of Period Operating / 434 -94 89 95 524 0 442 350 546 1,337 -831 -662 289 -798 -2,001 Investing Activities
Slide 16: Dividend Summary
Appendix Dividend Summary (Unit:KRW / Common Share) Dividend per Share Dividend Payout Ratio(Consolidated) 31.2% 28.7% 28.7% 33.9% 23.7% 23.3% 20.9% 19.7% 17.1% 13.6% 13.8% 6,000 6,000 5,000 4,500 4,000 4,000 4,000 4,000 4,000 3,500 2,500 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ※ Divi
Slide 17: 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% 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) (Source: IHS) Capa
Slide 18: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,305 1,334 1,331 1,351 2,024 2,018 2,009 1,285 1,963 1,898 1,942 1,896 1,196 1,230 1,228 1,213 1,182 1,087 1,887 1,221 1,180 1,929 1,793 1,726 1,100 1,227 1,204 1,136 1,060 1,745 1,165 1,170 1,167 1,673 1,625 1,099 1,114 1,
Slide 19: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,118 2,050 2,048 2,041 2,018 2,024 1,374 1,369 1,385 1,380 2,005 1,975 2,031 1,919 1,2881,340 1,336 1,287 1,943 1,890 1,268 1,288 1,886 1,919 1,855 1,215 1,236 1,219 1,165 1,803 1,803 1,823 1,220 1,210 1,190 1,182 1,248 1,173 1,1651,092
Slide 20: @ LG Ch em 07336 LG Twin Towers 128, Yeoui-daero, Yeong deung po-gu, Seoul
@ LG Ch em 07336 LG Twin Towers 128, Yeoui-daero, Yeong deung po-gu, Seoul | Tel.02-3773-1114 | www.\gchem.com 2019 LG Chem ed