LG Chem Ltd. · KRX:051910
LG Chem — Q1 2004 Earnings Presentation
16 slides from LG Chem's earnings presentation, Apr 27, 2004
Slide 1: 1Q 2004 Results & Business Outlook
1Q 2004 Results & Business Outlook April 27, 2004
Slide 2: Table of Contents
Table of Contents 1Q Results 1 Business Results & Outlook 3 Business Issues 7 Appendix 10 For the sake of our investors, this material was prepared when our external auditor did not complete its audit of the financial statements for the first quarter of 2004. Hence, parts of this material are subjec
Slide 3: '04 1Q Results: Sales
’04 1Q Results Sales Quarterly Sales Key Issue (KRW billion) Chemicals & Polymers 1,609 - Higher prices of major products associated with the 1,517 strong oil price and recovering demand from China 1,372 boosted sales to increase by 15 % YoY. 56% ☞ PVC : $672(’03 1Q) Æ $841(’04 1Q) 55% 56% Indus
Slide 4: '04 1Q Results: Operating Profit
’04 1Q Results Operating Profit Quarterly Operating Profit Key Issue (KRW billion) Operating Profit Chemicals & Polymers O/P Margin - The supply shortage in VCM and healthy demand resulted in strong PVC price. In addition, stable supply of EDC led operating margin to increase 169 remarkably. (27%↑
Slide 5: Chemicals & Polymers (Petrochemicals)
Business Results & Outlook Chemicals & Polymers (Petrochemicals) Recovery of the world economy and limited supply of major products have pushed sales and operating profits by a large margin . Business Results Results Analysis & Outlook (Unit: KRW billion) Sales Operating Profit • Results Analysis (1
Slide 6: Chemicals & Polymers (Performance Polymer)
Business Results & Outlook Chemicals & Polymers (Performance Polymer) Since passing the trough of chemical cycle in 2Q 2003, the demand has been gradually recovered, which resulted in sales growth YoY. In contrast, operating profits decreased by 10 % YoY. Business Results (Unit: KRW billion) Results
Slide 7: Industrial Materials
Business Results & Outlook Industrial Materials In spite of the delay in domestic economic recovery, sales increased moderately. However, operating profit decreased sharply as a result of increased raw material prices. Business Results Results Analysis & Outlook (Unit: KRW billion) • Results Analysi
Slide 8: Information & Electronic Materials
Business Results & Outlook Information & Electronic Materials The capacity expansion for batteries and polarizers contributed greatly to boost sales; however, profitability worsened owing to increased depreciation expenses. Business Results Results Analysis & Outlook (Unit: KRW billion) Sales Operat
Slide 9: Petrochemical Cycle
Petrochemical Cycle The petrochemical business expects continued growth until 2005 or 2006, assuming continued tight supply; however thereafter, new or expanded production capacities in the Middle East would cause overall oversupply. Source : CMAI (Chemical Market Associates, Inc.) 7/14
Slide 10: Polarizer Business & Strategy: Market & Competitive Status
Polarizer Business & Strategy ① Market & Competitive Status The Flat Panel Displays are expected to continue to shine, rising at a 21% CAGR from 2003 to 2008. Especially TFT-LCDs are enjoying rapid growth due to the Korea and Taiwan capacity growth. FPD시장 market 전망 overview (million set/yr) Market O
Slide 11: Polarizer Business & Strategy: Business Target & Strategy
Polarizer Business & Strategy ② Business Target & Strategy The world’s top supplier is our business perspective in 2006; achieving sales revenue of KRW 770 billion and 35% share of market. Business Target Strategic Strategy *MS : volume basis (mid-large size TFT-LCD) 35% ■ Development of differentia
Slide 12: Appendix: B/S & Cash Flow
Appendix B/S & Cash Flow (Unit : KRW Bil., %) (Unit : KRW Bil.) B/S ’03.12 ’04.03 ’04.12(E) 2003 2004 1Q 2004(E) Assets 4,761.7 5,069.8 5,376.9 CASH OUT 993.3 554.7 980.4 Accounts and notes receivable (net)1) 392.9 448.2 424.2 Inventories 379.0 464.0 410.3 Investment 841.4 117.6 621.0 Investment Ass
Slide 13: Appendix: 1Q 2004 Sales & Operating Profit
Appendix 1Q 2004 Sales & Operating Profit (Unit : KRW Bil.) Sales Operating Profit ’03 1Q ’03 ’04 1Q ’04 (E) ’03 1Q ’03 ’04 1Q ’04 (E) Chemicals & Polymers 808.0 3,261.3 936.6 3,209.1 85.5 228.1 110.1 265.3 PVC & Plasticizers 300.3 1,220.1 347.3 42.0 105.4 53.3 Acrylates 81.2 321.0 99.1 8.6 43.9 22.
Slide 14: Appendix: Balance and estimation of borrowings
Appendix Balance and estimation of borrowings (Unit : KRW Bil., %) Balance Dec.31, 2004(E) Dec. 31, 2003 Mar. 31, 2004 Change Total 1,706.0 2,018.0 312.0 1,677.5 (%) (100) (100) (100) KRW Currency 1,421.0 1,709.3 1,450.7 288.3 (%) (83) (85) (86) C P 65.0 255.5 190.5 98.1 C B 1,100.0 1,200.0 100.0 1,
Slide 15: Appendix: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit : KRW Bil.) ’03 Result ’04 Plan ’04 1Q Result New/Expansion 43.7 33.5 4.5 Chemicals & Maintenance 51.4 65.5 7.2 Equity Investment 11.5 32.0 - Polymers Total 106.6 131.0 11.7 New/Expansion 9.4 14.5 0.9 Industrial Maintenance 39.0 53.0 8.5 Materials Equity Investmen
Slide 16: Appendix: Prices of Raw materials & Products
Appendix Prices of Raw materials & Products Raw material price trend Product price trend (Unit : U$ / MT) (Unit : U$ / MT) ABS Ethylene 1,056 775 ▲ 1,084 950 948 1,000 910 600 581 502 Benzene 896 LDPE 463 ▲ 551 ▲ PVC 729 719 842 499 800 683 511 387 443 650 400 379 ▲ EDC 672 692 353 371 600 607 568 2