Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2014 Earnings Presentation
15 slides from Lg Chem's earnings presentation, Jan 26, 2015
Slide 1: 4Q 2014 Business Results & Outlook
4Q 2014 Business Results & Outlook January 26, 2015
Slide 2: Disclaimer
Disclaimer The business results for the forth quarter of 2014 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 IFRS(International Financial R
Slide 3: Table of Contents
Table of Contents Yearly Business Results 1 4Q 2014 Business Results 2 Divisional Results & Outlook 4 2015 Business Plan 6 Appendix 8 - Divisional Sales & Operating Profit - Borrowings & Cash Flow - CAPEX Plan & Results - Quarterly Price Trends - Monthly Price Trends
Slide 4: Yearly Business Results
Yearly Business Results 23.1tn △2.4% 22.6tn Sales (KRW tn) Operating Profit (KRW bn) Classification change change ’13 ’14 ’13 ’14 (%) (%) 1,743bn 1,743 1,311 Total 23.1 22.6 -2% -25% (7.5) (5.8) 1,311bn △24.8% Petro- 1,332 1,117 17.6 17.3 -2% -16% chemicals (7.6) (6.5) I&E 379 158 3.2 2.8 -11% -58%
Slide 5: 4Q 2014 Business Results: Income Statements
4Q 2014 Business Results Income Statements (Unit: KRW bn) Classification ’13.4Q ’14.3Q ’14.4Q YoY QoQ Sales 5,641 5,664 5,372 -4.8% -5.1% Operating Profit 316 358 232 -26.8% -35.2% (%) (5.6) (6.3) (4.3) Pre-tax Income 236 294 222 -5.9% -24.4% (%) (4.2) (5.2) (4.1) Net Income 177 232 109 -38.2% -52.8
Slide 6: 4Q 2014 Business Results: Financial Position
4Q 2014 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’13 ’14 Change Classification ’13 ’14 Change Asset 17,447 18,128 3.9% Total Liabilities/ 48.8 47.8 -1.0%p Cash and Equity (%) equivalents 1,909 1,748 -8.5% Borrowings / 25.7 23.9 -1.8%p Liab
Slide 7: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis • Business results decreased due to weak seasonality, oil price plunges and maintenance shutdown 4,300 4,352 3,982 -NCC/PO : Earnings decreased due to maintenance shutdown at Yeosu NCC despite robust spre
Slide 8: Divisional Results & Outlook: I&E Materials/Energy Solutions
Divisional Results & Outlook I&E Materials/Energy Solutions Business results Analysis (Unit: KRW bn) • Analysis - I&E : Despite weak seasonality, earnings improved due to Materials strong panel market and increased utilization rate of Chinese new polarizer lines 711 737 711 - Energy : Sales of Mobil
Slide 9: 2015 Business Plan
2015 Business Plan Business Plan Business Strategy (Unit: KRW bn) Petrochemicals : Enhance profitability & develop technology-based products Classification ’14 ’15 Plan • Develop high quality products with leading-edge technology - Secure differentiated products such as m-PE, EP and SAP & global m
Slide 10: 2015 Business Plan: Cash Flow and CAPEX
2015 Business Plan Cash Flow CAPEX (Unit: KRW bn) Key Investments Classification Amounts Classification Amounts Total 1,790 <New & Expansion> (Unit: KRW bn) Cash Inflow 2,120 New / Expansion 730 ▣ Petrochemicals 290 From Operating 910 Type - SAP 80KT, AA 160KT R&D 300 ▣ I&E Materials 150 Depreciatio
Slide 11: Appendix: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2013 2014 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 5,721 5,917 5,865 5,641 23,144 5,673 5,869 5,664 5,372 22,578 Operating Profit 409 502 516 316 1,743 362 360 358 232 1,311 OP Margin 7.1% 8.5% 8.8% 5.6% 7.5% 6.4% 6.1% 6.3%
Slide 12: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’13 ’14 Classification ’13 ’14 Total 3,011 2,934 Beginning Cash 1,341 1,909 (Overseas Subsidiaries) (1,172) (1,244) 100% 100% Operating/Investing 813 215 KRW Currency 803 601 27% 20% Net Income 1,271 8
Slide 13: Appendix: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’12 ’13 ’14 Plan ’14 New / Expansion 791 416 499 402 Petrochemicals Maintenance 177 213 394 329 Total 969 629 894 731 New / Expansion 253 269 454 126 I&E Maintenance 71 94 132 122 Materials Total 324 363 586 248 New / Expansion 408 104 76 1
Slide 14: Appendix: Quarterly Price Trends
Appendix Appendix Quarterly 분기별 제품가격 Price Trends 추이 (Unit:U$/MT) (Unit:U$/MT) PVC/ Acrylate/ Rubber/ NCC/PO ABS/EP Plasticizer SAP Specialty Polymers • The prices are average price of CFR FE Asia for general grade in each product group. 12 / 11 12
Slide 15: Appendix: Monthly Price Trends
Appendix Appendix Monthly Price Trends 분기별 제품가격 추이 (Unit:U$/MT) (Unit:U$/MT) 1,686 2,061 1,630 1,629 1,608 2,000 2,028 1,576 1,574 1,589 1,565 1,944 1,926 1,545 1,524 1,536 1,602 1,599 1,569 1,509 1,933 1,890 1,893 1,900 1,896 1,965 1,873 1,578 1,586 1,915 1,528 1,570 1,927 1,823 1,774 1,831 1,909 1