Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (November 2012)
16 slides from Lg Chem's roadshow presentation, November 2012
Slide 1: Business & Market Outlook
Business & Market Outlook Nov, 2012
Slide 2: Disclaimer
Disclaimer From the first quarter of 2012, this material shows business results and related substances by 3 divisions(Petrochemicals, I&E Materials and Energy Solution) and thus past figures are revised to a same basis. Forecasts and projections contained in this material are based on current busine
Slide 3: Table of Contents
Table of Contents LG Chem at Glance 1 3Q 2012 Business Results 3 Divisional Results & Outlook 5 Appendix 7
Slide 4: LG Chem at a Glance
LG Chem at a Glance ＊ Impressive Revenue Scale… • 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 and annual revenues of KRW 22.7 trillion in 2011. 22,676 19,000 • LG Chem boasts multiple production facilities and an ext
Slide 5: Differentiated Competitiveness
Differentiated Competitiveness Vertical Integration Structure Co-existence of upstream and downstream products Naphtha Annual usage: appx. 5.5 mil MT One of few petrochemical companies around the globe with vertical integration structure, featuring both upstream and NCC Ethylene (2,000 KMT/yr) downs
Slide 6: 3Q 2012 Business Results: Income Statements
3Q 2012 Business Results Income Statements (Unit: KRW bn) Classification ’11.3Q ’12.2Q ’12.3Q YoY QoQ Sales 5,886 5,996 5,834 -0.9% -2.7% Operating Profit 724 503 601 -17.0% 19.5% (%) (12.3) (8.4) (10.3) Pre-tax Income 668 480 585 -12.4% 21.9% (%) (11.3) (8.0) (10.0) Net Income 512 374 459 -10.2% 22
Slide 7: 3Q 2012 Business Results: Financial Position
3Q 2012 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’11 ’12.3Q Change Classification ’11 ’12.3Q Change Asset 15,286 16,920 10.7% Total Liabilities/ 57.5 60.5 3.0%p Cash and Equity (%) equivalents 1,379 1,302 -5.6% Borrowings / 26.0 28.7 2.7%p
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis ▣ Overall margin improved thanks to stabilizing feedstock costs and better cost position despite continued weak demand amid global 4,570 4,521 economic downturn 4,366 28% -NCC/PO : Improved spread by stab
Slide 9: Divisional Results & Outlook: I&E Materials/Energy Solution
Divisional Results & Outlook I & E Materials/Energy Solution Business results Analysis (Unit: KRW bn) • Analysis ▣ Despite sluggish Energy Solution, I&E Materials recorded sound results thanks to seasonal demand and high margin product sales increases - I&E : Recorded sound results thanks to rises o
Slide 10: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2011 2012 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 5,491 5,700 5,886 5,599 22,676 5,753 5,996 5,834 17,582 Operating Profit 835 775 724 500 2,835 460 503 601 1,564 Petrochemicals 4,276 4,328 4,570 4,150 17,325 4,491 4,521 4,
Slide 11: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’11 ’12.3Q Classification ’11 ’12.3Q Total 2,527 3,025 Beginning Cash 1,368 1,379 (Overseas Subsidiaries) (1,044) (1,021) 100% 100% Operating/Investing -96 -259 KRW Currency 475 815 19% 27% Net Income
Slide 12: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’10 ’11 ’12 Plan ’12.3Q (YTD) New / Expansion 320 664 743 630 Petrochemicals Maintenance 266 296 269 159 Total 586 960 1,012 789 New / Expansion 425 330 539 173 I&E Maintenance 78 100 89 60 Materials Total 503 430 628 232 New / Expansion 38
Slide 13: Quarterly Price Trends
Appendix Appendix 분기별 제품가격 Quarterly 추이 Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,696 1,611 4,458 1,600 1,535 4,159 1,526 3,997 3,766 1,413 3,612 1,375 1,364 1,360 1,377 1,345 3,479 3,372 1,320 1,326 1,319 3,310 1,304 3,214 1,253 1,356 1,213 1,318 1,274 3,397 2,830 1,311 1,306 1,275 2,728 1,255 1,248
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,434 3,836 1,411 1,419 3,794 3,790 3,731 1,385 1,356 1,345 1,308 1,301 1,417 1,343 1,344 1,414 1,297 1,318 3,329 3,670 3,440 3,426 1,365 1,375 1,271 1,328 1,316 1,259 1,328 1,334 3,100 3,180 1,307 1,298 1,315 1,315 1,242 1,320 1,318 3,038 2,96
Slide 15: Global Position of Key Products
Appendix Global Position of Key Products As of Nov, 2012 Item Location Capa Global Rank Capa Addition(’12) * ABS (Acrylonitrile-Butadiene-Styrene) Korea, China 1,390 KMT/Yr 1st PVC (Polyvinyl Chloride) Korea, China 1,270 KMT/Yr 6th Oxo-Alcohol Korea (Yeosu, Naju) 299 KMT/Yr 10th AA (Acrylic Acid) Ko
Slide 16: Stock Information
Appendix Stock Information Shareholders & Market Cap Dividends (Unit: KRW bn) Classification ’10 ’11 Change LG Corp. Foreign Investors 33.5% 34.5% Net Income 2,200 2,170 -1.4% Institutional & Individual Investors 32.0% EPS(KRW) 29,345 29,069 -0.9% * * Total Dividends 295 295 0 Common Stock as of Nov