Lg Chem Ltd. · KRX:051910
Lg Chem — Q3 2019 Earnings Presentation
18 slides from Lg Chem's earnings presentation, Oct 25, 2019
Slide 1: 3Q 2019 Business Results & Outlook
October 25, 2019 3Q 2019 Business Results & Outlook
Slide 2: 3Q 2019 Earnings Summary Results & Outlook by Business Appendix
3Q 2019 Earnings Summary 4~5 Results & Outlook by Business 6~9 Appendix 10~17 - Sales & Operating Profit by Business - CAPEX / R&D Expenses - Income Statements / Financial Position / Cash Flows - Ethylene / PE Demand & Supply - Quarterly / Monthly Price Trends
Slide 3: investors’ convenience. Hence, please be advised that some of their business environments and management’s
The business results 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 K-IFRS(Korea International Financial Reporting Standards). Forecasts an
Slide 4: 3Q 2019 Business Results: Income Statements
3Q 2019 Business Results Income Statements (Unit:KRW bn) 2018 2019 YoY QoQ 3Q 4Q 1Q 2Q 3Q Sales 7,235 7,343 6,639 7,177 7,347 +1.6% +2.4% OP 602 290 275 268 380 -36.9% +42.2% (%) 8.3% 3.9% 4.1% 3.7% 5.2% EBITDA 975 684 682 725 862 -11.7% +18.8% (%) 13.5% 9.3% 10.3% 10.1% 11.7% Pre-tax Income 485 158
Slide 5: 3Q 2019 Business Results: Financial Position
3Q 2019 Business Results Financial Position Balance Sheet Financial Ratios (Unit:KRW tn) 2018 2Q 2019 3Q 2019 QoQ 2018 2Q 2019 3Q 2019 QoQ Liabilities / Assets 28.94 32.44 33.53 +3.4% 67.1% 87.7% 91.7% +4.0%p Equity Cash and 2.56 2.67 2.09 -21.8% Debts / Equity 30.7% 49.1% 51.2% +2.1%p Equivalents N
Slide 6: Results & Outlook by Business: Petrochemicals
Results & Outlook by Business Petrochemicals (Unit:KRW bn) Sales 4,384 4,100 3,936 3,965 3,749 NCC/PO 34% 31% 30% 32% 33% PVC/Plasticizer 14% 15% 16% 14% 14% ABS 30% 30% 31% 30% Acrylate/SAP 31% 11% 12% 12% 12% Rubber/ 12% Specialty Polymers 11% 12% 11% 11% 11% 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 201
Slide 7: Results & Outlook by Business: Energy Solutions
Results & Outlook by Business Energy Solutions (Unit:KRW bn) 2,210 2,077 2,009 Energy Solutions 1,704 1,650 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Operating Profit 84 96 -148 -128 71 (%) (4.9%) (4.6%) (-9.0%) (-6.4%) (3.2%) [Analysis] [Outlook] Improved sales and profitability due to increased
Slide 8: Results & Outlook by Business: Advanced Materials
Results & Outlook by Business Advanced Materials (Unit:KRW bn) Advanced 1,221 1,247 1,234 1,254 1,218 Materials 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Operating Profit 31 -8 4 19 33 (%) (2.5%) (-0.7%) (0.3%) (1.5%) (2.7%) [Analysis] [Outlook] Increased profitability due to seasonality of front
Slide 9: Results & Outlook by Business: Life Sciences / Farm Hannong
Results & Outlook by Business Life Sciences / Farm Hannong (Unit:KRW bn) 144 Life Sciences 154 166 135 158 Farm Hannong 228 170 92 83 94 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Operating Profit Life Sciences 13 14 12 11 16 (%) (9.8%) (8.6%) (8.2%) (7.1%) (9.7%) -19 -23 38 9 -11 Farm Hannong (-20.4%)
Slide 10: Sales & Operating Profits by Business
Appendix Sales & Operating Profits by Business (Unit:KRW bn) 2017 2018 2019 LG CHEM 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Sales 6,487 6,382 6,397 6,432 25,698 6,554 7,052 7,235 7,343 28,183 6,639 7,177 7,347 21,164 Operating Profits 797 727 790 615 2,929 651 703 602 290 2,246 275 268 380 923 (%) 12.3% 11
Slide 11: CAPEX / R&D Expenses
Appendix CAPEX / R&D Expenses CAPEX R&D Expenses (Unit:KRW tn) (Unit:KRW bn) 2019 2019 2017 2018 2017 2018 1Q 2Q 3Q 1Q 2Q 3Q Petrochemicals 0.6 1.4 0.4 0.4 0.4 1.2 Petrochemicals 132 144 38 39 36 113 Energy Energy 1.0 1.9 0.6 0.7 1.2 2.5 299 320 98 98 91 287 Solutions Solutions Advanced Advanced 0.2
Slide 12: Income Statements
Appendix Income Statements (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Sales 6,487 6,382 6,397 6,432 25,698 6,554 7,052 7,235 7,343 28,183 6,639 7,177 7,347 21,164 Cost of Sales 5,073 5,011 4,940 5,110 20,135 5,212 5,580 5,868 6,177 22,837 5,469 6,029 6,095 17,593 1,414 1,371 1,457
Slide 13: Financial Position
Appendix Financial Position (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Assets 22,171 22,671 23,708 25,041 26,416 27,399 28,419 28,944 31,212 32,436 33,531 Cash and 1,909 2,107 2,400 2,779 3,132 2,830 3,333 2,557 3,122 2,667 2,085 Equivalents A/R 3,961 4,184 4,523 4,449 4,709 5,146
Slide 14: Cash Flows
Appendix Cash Flows (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Beginning 2,207 1,909 2,107 2,400 2,207 2,779 3,132 2,830 3,333 2,779 2,557 3,122 2,666 2,557 Cash Balance Operating / 0 442 350 546 1,337 -831 -662 289 -798 -2,001 -903 -1,490 -960 -3,352 Investing Activities Operatin
Slide 15: Ethylene / PE Demand Supply
Appendix Ethylene / PE Demand Supply Ethylene Polyethylene (Unit : million tons) (Unit : million tons) 220 100% 150 140% 200 180 90% 120% 160 100 140 120 80% 100% 100 80 50 60 70% 80% 40 20 0 60% 0 60% 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) 2023(e) 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) 2023(e
Slide 16: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,334 1,331 1,351 1,305 2,024 2,018 2,009 1,285 1,942 1,963 1,180 1,230 1,228 1,898 1,896 1,221 1,196 1,204 1,182 1,170 1,136 1,087 1,929 1,726 1,100 1,227 1,213 1,058 1,887 1,060 1,011 1,165 1,167 1,029 1,793 1,594 1,625 1,
Slide 17: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,118 2,041 2,050 2,048 2,031 1,385 1,380 2,018 2,024 1,374 1,369 2,005 1,975 1,340 1,336 1,943 1,919 1,288 1,287 1,288 1,919 1,890 1,855 1,219 1,236 1,219 1,823 1,803 1,886 1,195 1,190 1,182 1,268 1,185 1,173 1,165 1,158 1,739 1,755 1,16
Slide 18: @ LG Ch em 07336 LG Twin Towers 128, Yeoui-daero, Yeong deung po-gu, Seoul
@ LG Ch em 07336 LG Twin Towers 128, Yeoui-daero, Yeong deung po-gu, Seoul | Tel.02-3773-1114 | www.\gchem.com 2019 LG Chem ed