Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (June 2009)
19 slides from Lg Chem's roadshow presentation, June 2009
Slide 1: 1Q 2009 Business Results & Outlook
1Q 2009 Business results & Outlook June 2009
Slide 2: The business results for 1Q 2009 currently under audit review are presented here for
The business results for 1Q 2009 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 environments and
Slide 3: Table of Contents
Table of Contents LG Chem at a Glance 1 Mid to Long-term Business Strategy 2 Distinctive Vertical Integration 3 1Q 2009 Business Results 4 Divisional Results & Outlook 8 2009 Business Plan 10 Appendix 11
Slide 4: LG Chem at a Glance
LG Chem at a Glance • LG Chem was started in 1947 and is Korea’s first and Impressive Revenue Scale… largest blue chip chemical company with an 16,708 .3% established track of over 60 years and annual revenues GR : 17 15,000 CA 13,525 of KRW 16.7 trillion in 2008 11,432 10,785 10,000 8,817 KRW Billi
Slide 5: Mid to Long-term Business Strategy
Mid to Long-term Business Strategy Business Portfolio Strategy Petrochemicals I&E Materials Business Strategy 81% Optimizing the businesses 19% Petro- Focusing on value-added ’08 chemicals downstream products Securing long-term competitiveness of China businesses Investing overseas via J/V 73% 27% ’
Slide 6: Distinctive Vertical Integration
Distinctive Vertical Integration Vertical Integration Structure Co-existence of upstream and downstream products Naphtha Annual usage: appx. 5 mil MT • One of few petrochemical companies around the globe with a vertical integration structure, featuring both upstream and NCC Ethylene (1,660 KMT/yr) d
Slide 7: 1Q 2009 Business Results
1Q 2009 Business Results Consolidated Non-consolidated (Unit:KRW bn) (Unit:KRW bn) 3.49tn 3.33tn 3.40tn 2.99tn 2.93tn 2.82tn 487 417 362 340 147 59 '08.1Q '08.4Q '09.1Q '08.1Q '08.4Q '09.1Q 매Sales 출 영O 업 P 익 Sales출 매 O 영 P업 익 4/16
Slide 8: 1Q 2009 Business Results
1Q 2009 Business Results Non-consolidated (Unit:KRW bn) 3.60tn 3.24tn 2.99tn 2.93tn 2.82tn 445 412 417 340 147 ' 081Q 2Q 3Q 4Q ' 091Q ’08.1Q 2Q 3Q 4Q ’09.1Q Sales 출 매 O 업 영 P 익 5/16
Slide 9: 1Q 2009 Business Results: Income Statements
1Q 2009 Business Results Income Statements Consolidated Non-Consolidated (Unit : KRW bn) ’08.1Q ’08.4Q ’09.1Q YoY ’08.1Q ’08.4Q ’09.1Q YoY Sales 3,494 3,332 3,400 -2.7% 2,994 2,816 2,932 △2.1% Operating Profit 362 59 487 340 147 417 34.6% 22.4% (%) (10.4) (1.8) (14.3) (11.4) (5.2) (14.2) Pre-tax Inc
Slide 10: 1Q 2009 Business Results: Balance Sheets
1Q 2009 Business Results Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’08 ’09.1Q Apr 1,’09 ’08 ’09.1Q Apr 1,’09 Assets 9,736 10,371 9,110 8,036 8,623 7,502 (Cash and equivalents) 514 1,126 905 373 968 754 Liabilities 4,683 5,205 4,611 3,147 3,632 3,172 (Borrowings) 2,743 2,909 2,565
Slide 11: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 2,835 ABS/EP 2,587 ▣ China’s economic stimulus measures led rapid 2,470 rebound of product demand and prices 31% 28% ▣ Significant improvement of spread due to low- NCC/PO 28% cost raw materi
Slide 12: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 786 750 ▣ Electronics & opticals - Rebound of utilization in LCD panel makers due to 620 30% demand increase in China Battery 36% - Raw material cost burden from strong Japanese 26% Yen resu
Slide 13: 2009 Business Plan
2009 Business Plan Business Plan Cash Flow (Unit:KRW bn) (Unit:KRW bn) Key Investment Consolidated Non-consolidated Item Amounts Item (Unit:KRW bn) Cash Inflow 1,617 ’08 ’09(P) ’08 ’09(P) ▣ Petrochemicals 263 From 1,239 -Acrylate debottlenecking, 104 Operating etc. Total Sales 14,500 12,600 12,600 1
Slide 14: Appendix: Sales & Operating Profit (Consolidated)
Appendix Sales & Operating Profit(Consolidated) (Unit: KRW bn) 2008 2009 LGC 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 3,494 3,749 3,980 3,332 14,555 3,400 3,400 Operating Profit 362 484 416 59 1,321 487 487 Petrochemicals 2,835 3,131 3,380 2,470 11,816 2,587 2,587 NCC/PO 884 977 1,074 703 3,638 751
Slide 15: Appendix: Sales & Operating Profit (Non-Consolidated)
Appendix Sales & Operating Profit(Non-Consolidated) (Unit: KRW bn) 2008 2009 LGC 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 2,994 3,239 3,597 2,816 12,645 2,932 2,932 Operating Profit 340 445 412 147 1,344 417 417 Petrochemicals 2,397 2,607 2,961 2,075 10,039 2,152 2,152 NCC/PO 884 985 1,085 720 3,67
Slide 16: Appendix: Borrowings & Cash Flow (Non-consolidated)
Appendix Borrowings & Cash Flow(Non-consolidated) Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’08 ’09.1Q ’09 Plan Beginning 466 373 ’08 ’09.1Q ’09.4.1 Operating/Investing 246 426 1,350 1,539 1,327 1,099 Total Net Income 1,003 321 (100%) (100%) (100%) (100%) Depreciation 402 91 KRW 9
Slide 17: Appendix: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’07 ’08 ’09 Plan ’09.1Q New/Expansion 142 217 104 33 Maintenance 68 85 136 27 Petrochemicals Equity Investment 16 23 Total 227 302 263 60 New/Expansion 42 194 347 61 I&E Maintenance 36 51 91 11 Materials Equity Investment 12 21 28 11 To
Slide 18: Appendix: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,858 1,800 1,720 1,600 1718 2,109 1,496 1,681 1,632 1,961 1,322 1,364 2,032 1,462 1,377 1,477 1,584 1,688 1,733 1,700 1,973 1,284 1,305 1381 1225 1,638 1,307 1,569 1,756 1,036 1,633 1,624 1,417 1,206 1,203 1016 1,027 1,635 1,350 1,151 949 1,175 1,111
Slide 19: Appendix: Stock Information
Appendix Stock Information Shareholders & Market Cap GDR Info. LG Corp. Foreign Investors Listed in LSE 33.5% 22.8% 144A GDR Reg.S GDR Institutional & Individual Investors 43.7% ORD:GDR Ratio: 1:2 Exchange: PORTAL Ticker: LGCLY US Common Stock as of May 28, 2009 ISIN: US5019551085 (Unit : KRW) May 2