Lg Chem Ltd. · KRX:051910

Lg Chem — Q4 2019 Earnings Presentation

22 slides from Lg Chem's earnings presentation, Feb 3, 2020

  1. Slide 1: 4Q 2019 Business Results & Outlook

    February 3, 2020 4Q 2019 Business Results & Outlook

  2. Slide 2: Contents

    2019 Earnings Summary 4~6 Results & Outlook by Business 7~10 Business Plan for 2020 11~12 Appendix 14~22 - Sales & Operating Profit by Business - Income Statements / Financial Position / Cash Flows - Dividend Summary - R&D Expenses - Ethylene / PE Demand & Supply - Quarterly / Monthly Price Trends

  3. Slide 3: Disclaimer

    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

  4. Slide 4: 2019 Business Results

    2019 Business Results Sales Operating Profit(%) (Unit:KRW tn) (Unit:KRW bn) 28.2 +1.6% 28.6 2019 +9.7% 2017 2018 W / O* 25.7 Actual Non-recurring Loss 2,929 2,246 896 1,320 LG Chem (11.4%) (8.0%) (3.1%) (4.6%) 15.5 Petrochemicals 2,683 2,031 1,418 1,418 17.0 Petrochem (16.4%) (12.0%) (9.1%) (9.1%) E

  5. Slide 5: 4Q 2019 Business Results: Income Statements

    4Q 2019 Business Results Income Statements (Unit:KRW bn) 2018 2019 4Q 4Q 1Q 2Q 3Q W / O* Actual Non-recurring Loss Sales 7,343 6,639 7,177 7,347 7,461 7,461 OP 290 275 268 380 -28 276 (%) 3.9% 4.1% 3.7% 5.2% -0.4% 3.7% EBITDA 684 682 725 862 485 789 (%) 9.3% 10.3% 10.1% 11.7% 6.5% 10.6% Pre-tax Inco

  6. Slide 6: 4Q 2019 Business Results: Financial Position

    4Q 2019 Business Results Financial Position Balance Sheet Financial Ratios (Unit:KRW tn) 2017 2018 2019 2017 2018 2019 Liabilities / Asset 25.04 28.94 34.02 53.3% 67.1% 95.7% Equity Cash and 2.78 2.56 1.92 Debts / Equity 18.6% 30.7% 48.4% Equivalents Net Debts / Liabilities 8.70 11.62 16.64 1.6% 16.

  7. Slide 7: Results & Outlook by Business: Petrochemicals

    Results & Outlook by Business Petrochemicals (Unit:KRW bn) Sales 4,100 3,936 3,965 3,898 3,749 NCC/PO 31% 32% 33% 34% 30% PVC/Plasticizer 15% 16% 14% 14% 14% ABS Acrylate/SAP 30% 31% 31% 30% 29% Rubber/ Specialty Polymers 12% 12% 12% 12% 12% 12% 11% 11% 11% 11% Operating Profit 4Q 2018 1Q 2019 2Q 20

  8. Slide 8: Results & Outlook by Business: Energy Solutions

    Results & Outlook by Business Energy Solutions (Unit:KRW bn) Energy Solutions 2,481 24,806 2,077 2,210 2,009 1,605 4Q 2019, W / O 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Non-recurring Loss Operating Profit 96 -148 -128 71 -250 54 (%) (4.6%) (-9.0%) (-6.4%) (3.2%) (-10.1%) (2.2%) [Analysis] [Outlook]

  9. Slide 9: Results & Outlook by Business: Advanced Materials

    Results & Outlook by Business Advanced Materials (Unit:KRW bn) 1,247 1,234 1,254 1,218 Advanced 1,201 Materials 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Operating Profit -8 4 19 33 8 (%) (-0.7%) (0.3%) (1.5%) (2.7%) (0.7%) [Analysis] [Outlook]  Sales and profitability decreased due to seasonality 

  10. Slide 10: Results & Outlook by Business: Life Sciences / Farm Hannong

    Results & Outlook by Business Life Sciences / Farm Hannong (Unit:KRW bn) 144 154 Life Sciences 166 164 158 228 Farm Hannong 170 83 94 99 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Operating Profit Life Sciences 14 12 11 16 -2 (%) (8.5%) (8.2%) (7.1%) (9.7%) (-1.0%) Farm Hannong -23 38 9 -11 -15 (-27.3%

  11. Slide 11: 2020 Business Outlook

    2020 Business Outlook Business Outlook Business Outlook (Unit:KRW tn) 35.3 +23.4% +1.6% 28.6 28.2 +9.7% 25.7 15.7 Petrochemicals 15.5 17.0 Energy Solutions 16.4 Advanced 15.0 Materials 8.4 6.5 4.6 Life Sciences 4.4 4.7 4.9 4.7 0.6 0.6 0.6 0.7 Farm Hannong 0.6 0.6 0.6 0.6 2017 2018 2019 2020(p) ※ Bus

  12. Slide 12: 2020 Business Outlook: CAPEX

    2020 Business Outlook CAPEX CAPEX (Unit:KRW tn) 6.9 -13% 6.0 +50% 1.8 Petrochemicals 1.8 4.6 Energy Solutions 16.4조+84% 1.4 3.9 Advanced Materials 2.5 3.0 0.6 1.9 Life Sciences 1.0 0.5 0.6 0.5 0.2 0.1 Farm Hannong 0.1 0.1 0.0 0.6 0.7 0.6 0.7 2017 2018 2019 2020(p) ※ Business outlook and CAPEX are ba

  13. Slide 13: 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 4Q 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 7,461 28,625 Operating Profits 797 727 790 615 2,929 651 703 602 290 2,246 275 268 380 -28 896

  14. Slide 14: Income Statements

    Appendix Income Statements (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 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 7,461 28,625 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 6,186 23,779 1,

  15. Slide 15: Financial Position

    Appendix Financial Position (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Assets 22,171 22,671 23,708 25,041 26,416 27,399 28,419 28,944 31,212 32,436 33,531 34,024 Cash and 1,909 2,107 2,400 2,779 3,132 2,830 3,333 2,557 3,122 2,667 2,085 1,921 Equivalents A/R 3,961 4,184 4,523 4

  16. Slide 16: Cash Flows

    Appendix Cash Flows (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Beginning 1,474 1,492 1,730 1,781 1,474 2,249 2,917 2,352 3,067 2,249 2,514 3,098 2,631 2,055 2,514 Cash Balance Operating Activities 224 955 929 1,073 3,181 37 82 1,198 808 2,125 644 246 395 1,839 3,124 Operating P

  17. Slide 17: Dividend Summary

    Appendix Dividend Summary (Unit:KRW / Common Share) Dividend per Share 49.0% Dividend Payout Ratio(Consolidated) 31.2% 33.9% 23.7% 28.7% 28.7% 23.3% 19.7% 17.1% 13.6% 13.8% 6,000 6,000 5,000 4,500 4,000 4,000 4,000 4,000 4,000 3,500 2,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ※ Divi

  18. Slide 18: R&D Expenses

    Appendix R&D Expenses R&D Expenses (Unit:KRW bn) 1,132 1,062 155 144 893 132 320 388 Petrochemicals Energy Solutions 299 Advanced Materials 235 192 Life Sciences 213 124 164 Common 96 (including Farm Hannong) 238 234 152 2017 2018 2019 18

  19. Slide 19: 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

  20. Slide 20: Quarterly Price Trends

    Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 1,334 1,331 1,351 2,024 2,009 2,018 1,228 1,213 1,182 1,136 1,793 1,227 1,087 1,058 1,929 1,726 1,204 1,887 1,060 1,029 1,011 957 1,594 1,625 1,559 1,582 1,093 1,094 1,114 1,504 961 956 1,464 996 886 1,435 1,024 873 879 1,390 1,504 989

  21. Slide 21: Monthly Price Trends

    Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 1,158 1,053 1,019 1,040 1,040 1,029 1,010 1,032 1,570 996 998 972 1,560 1,573 986 966 1,617 1,521 960 955 1,490 1,000 943 933 1,471 1,476 993 996 1,549 1,447 1,474 964 966 908 907 905 874 1,508 1,418 1,411 960 870 873 1,503 1,482 1,393 93

  22. Slide 22: Copyright LG Chem

    Copyrightⓒ 2020 LG Chem. All Rights Reserved. 22

LG Chem — Q4 2019 Earnings Presentation on 6ix