Lg Chem Ltd. · KRX:051910
Lg Chem — Q3 2007 Earnings Presentation
13 slides from Lg Chem's earnings presentation, Oct 16, 2007
Slide 1: 3Q 2007 Business Results & Outlook
3Q 2007 Business Results & Outlook 2007. 10. 16
Slide 2: Audit review and forward-looking statements notice
The business results for the 3rd quarter of 2007 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 2007 Business Results 1 Divisional Results & Outlook 3 Subsidiaries’ Results & Outlook 6 Appendix 7
Slide 4: 3Q 2007 Business Results: Income Statements
3Q 2007 Business Results Income Statements Non-Consolidated Consolidated (Unit : KRW bn) ’06 3Q ’07 3Q ’07 2Q QoQ ’06 3Q ’07 3Q ’07 2Q QoQ Sales 2,482.5 2,766.6 2,644.9 11.4% 3,094.0 3,565.9 3,383.7 15.3% Operating Profit 107.1 252.5 162.6 217.3 374.1 292.1 135.8% 72.2% (%) (4.3) (9.1) (6.1) (7.0) (
Slide 5: 3Q 2007 Business Results: Balance Sheets
3Q 2007 Business Results Balance Sheets Non-Consolidated Consolidated (Unit : KRW bn) ’06 ’07 3Q ’06 ’07 3Q Assets 5,806.5 6,239.1 7,638.5 8,438.1 (Cash and equivalents) 115.8 123.1 387.2 541.1 Liabilities 3,189.3 3,079.2 4,360.7 4,509.9 (Borrowings) 1,585.3 1,504.8 2,412.1 2,288.5 Shareholder’s Equ
Slide 6: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit:KRW bn) • Analysis 1,742.8 1,647.3 ▣ Strong polyolefin prices and decreased depreciation 1,582.2 expenses resulted remarkable improvement in A BS / E P 27% 27% profitability for NCC/PO 28% · Ethylene : U$ 1,050 (’07 2Q)→ 1,2
Slide 7: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials Business results Analysis (Unit:KRW bn) • Analysis 563.3 ▣ Worsen margin in Housing Solutions (HS) due to sluggish 521.6 505.1 construction markets Liv ing 40% 38% So lu ti o ns / 38% ▣ Weak margin in Living Solutions (LS) by high raw material Au to
Slide 8: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials Business results Analysis (Unit:KRW bn) • Analysis 590.1 510.0 ▣ Battery : Turned to profit in 3Q 448.5 - Cylindrical : Tight supply/demand balance led price increase & full utilization Batte ry/ 33% 32% - Prismatic : Increased sales to LGE moved up utili
Slide 9: Subsidiaries' Results & Outlook
Subsidiaries’ Results & Outlook Business results Analysis & Outlook (Unit: KRW bn) ’06 3Q ’07 3Q ’07 2Q Sales 641.8 659.6 639.5 LG Petrochem LG Operating ▣ Despite high naphtha price, NCC resulted solid 92.5 87.6 90.3 performance thanks to strong ethylene market Petro- Profit (%) (14.4) (13.3) (14.1
Slide 10: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit (Unit : KRW bn) 2006 2007 1Q 2Q 3Q 4Q Sum 1Q 2Q 3Q 4Q Sum Sales 2,129.1 2,272.5 2,482.5 2,418.2 9,302.3 2,380.0 2,644.9 2,766.6 7,791.6 Operating Profit 65.6 48.1 107.1 112.3 333.9 127.0 162.6 252.5 542.4 Petrochemicals 1,364.8 1,429.6 1,582.2 1,508.2 5,884.8 1,498.
Slide 11: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’07 (P) ’06 ’07 3Q ’06 ’07 3Q Changes 1,585.3 1,504.8 △80.5 1,578.5 Beginning 317.0 115.8 Total (100%) (100%) (100%) Operating/Investing 115.8 160.7 KRW 1,269.2 1,136.5 △132.7 1,206.5 Currency (80%) (76%) (7
Slide 12: Appendix: Capex Plan & Results
Appendix Capex Plan & Results (Unit : KRW bn) ’05 Results ’06 Results ’07 Plan ’07 3Q New/Expansion 23.7 118.2 180.6 97.2 Maintenance 69.1 83.6 59.8 46.2 Petrochemicals Equity Investment 41.2 39.0 7.5 16.4 Total 134.0 240.8 247.9 159.8 New/Expansion 17.1 14.5 44.9 9.8 Industrial Maintenance 49.1 56.
Slide 13: Appendix: Price Trends
Appendix Price Trends Vinyls Styrenics (Unit:U$/MT) (Unit:U$/MT) 1,331 1,688 1,638 1,5861,5861,584 1,206 1,480 1,129 1,151 1,412 1,437 1,067 1,060 1,090 1,050 1,364 1,3641,384 1,3491,373 1011 1,2711,3031,277 970 1,185 1,160 887 834 910 928 841 1,075 1,096 760 798 1,041 740 786 818 854 984 1,023 987