LG Chem Ltd. · KRX:051910
LG Chem — Q4 2005 Earnings Presentation
16 slides from LG Chem's earnings presentation, Jan 25, 2006
Slide 1: 4Q 2005 Business Results & Outlook
4Q 2005 Business Results & Outlook Jan 25, 2006
Slide 2: The business results for the 4th quarter of 2005 currently under audit review are
The business results for the 4th quarter of 2005 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
Slide 3: Table of Contents
Table of Contents Quarterly Business Results 1 4Q 2005 Business Results 2 Divisional Results & Outlook 4 Subsidiaries’ Results & Outlook 7 2006 Business Plan 8 Appendix 9
Slide 4: Quarterly Business Results
Quarterly Business Results Non-Consolidated Consolidated (Unit:KRW bn) (Unit:KRW bn) 1,911 1,869 1,850 2,911 1,796 2,704 2,728 2,655 270.8 238.7 . 141.4 178.7 102.6 152.9 85.6 92.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales Operating Profit Sales Operating Profit 1 / 13
Slide 5: 4Q 2005 Business Results Income Statements
4Q 2005 Business Results Income Statements Non-Consolidated Consolidated (Unit:KRW bn) ’04 4Q ’05 4Q ’05 3Q QoQ ’04 4Q ’05 4Q ’05 3Q QoQ Sales 1,902.8 1,910.7 1,849.8 3.3 2,268.2 2,727.6 2,910.9 △6.3 Operating Profit 85.0 102.6 92.1 170.1 152.9 238.7 11.4 △35.9 (%) (4.5) (5.4) (5.0) (7.5) (5.6) (8.2
Slide 6: 4Q 2005 Business Results Balance Sheets
4Q 2005 Business Results Balance Sheets Non-Consolidated Consolidated (Unit:KRW bn) ’04 ’05 ’04 ’05 Assets 5,679.5 5,593.4 6,897.2 7,265.1 (Cash and equivalents) 413.7 189.4 527.9 597.5 Liabilities 3,484.4 3,154.9 4,196.1 4,215.4 (Borrowings) 1,979.7 1,842.2 2,591.4 2,590.2 Shareholder’s Equity 2,19
Slide 7: Divisional Results & Outlook: Chemicals & Polymers
Divisional Results & Outlook Chemicals & Polymers Business Results Analysis & Outlook (Unit:KRW bn) • Analysis 1,114 1,047 1,070 - PVC : Worsened margin from poor domestic demand 33% - ABS : Weak raw materials prices and market demand 36% 36% - Acrylate : Seasonal demand weakness Others 35% 32% 33%
Slide 8: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials Business Results Analysis & Outlook (Unit:KRW bn) • Analysis 523 538 518 - Limited improvement owing to slow recovery of domestic market. (new housing construction) 45% 44% 40% Automotive/ - Sales growth in the automotive component. Living · New oper
Slide 9: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials Business Results Analysis & Outlook • Analysis (Unit:KRW bn) Battery - Normalized utilization and gradual sales volume increase. 335 392 320 - Initialization of new production line. Optical - Downward pressure on ASP. 34 % & Battery/ - Strong growth of PD
Slide 10: Subsidiaries' Results & Outlook
Subsidiaries’ Results & Outlook Business Results Analysis & Outlook LG Petrochemical ’04 4Q ’05 4Q ’05 3Q - Price weakness in key products. (Unit:KRW bn) ’04 4Q ’05 3Q ’05 4Q Sales 506 512 533 Ethylene U$ 1,040 U$ 963 U$ 843 LG Operating Benzene U$ 1,072 U$ 845 U$ 761 73 31 83 Petro- Profit (14.3)
Slide 11: 2006 Business Plan
2006 Business Plan 2006 Business Plan Assumptions (Unit : KRW bn) * Non- Consolidated ■ Oil Price (U$ 60), Exchange Rate ( KRW 1,000 = U$ 1 ) Consolidated ■ Other Indicators Total Sales 9,500 11,500 · GDP Growth Rate (4.4%), Price Index (3.3%) · Interest Rate : CP (4.4%), Corporate Bond (5.3%) Divis
Slide 12: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit (Unit : KRW bn) 2004 2005 1Q 2Q 3Q 4Q Sum 1Q 2Q 3Q 4Q Sum Sales 1,609.1 1,754.1 1,861.4 1,902.8 7,127.4 1,868.9 1,795.7 1,849.8 1,910.7 7,425.1 Operating Profit 169.1 133.9 135.0 85.0 522.9 141.4 85.6 92.1 102.6 421.7 Chemicals & Polymers 936.5 988.7 1,112.9 1,114.3
Slide 13: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’06 (P) ’04 ’05 ’04 ’05 Changes 1,979.7 1,842.2 △137.5 1,766.0 Total Net Income 536.4 400.3 (100%) (100%) (100%) KRW 1,667.6 1,506.6 △161.0 1,359.8 Depreciation 333.2 344.5 Currency (84%) (82%) (77%) C P 150
Slide 14: Appendix: Capex Plan & Results
Appendix Capex Plan & Results (Unit : KRW bn) ’03 Results ’04 Results ’05 Results ’06 Plan New/Expansion 43.7 11.8 23.7 127.4 Chemicals & Maintenance 51.4 52.7 69.1 94.0 Polymers Equity Investment 11.5 6.6 41.2 31.9 Total 106.6 71.1 134.0 253.3 New/Expansion 9.4 4.9 17.1 42.8 Industrial Maintenance
Slide 15: Appendix: Financial statements after merger
Appendix Financial statements after merger Balance Sheet Income Statement (As of ’06.1.1) (’05.1.1~12.31) (Unit : KRW bn) (Unit : KRW bn) Assets 5,767.5 Sales 8,897.2 - Current Assets 1,958.1 Cost of Sales 1,469.6 · Cash & Cash equivalents 370.9 (%) (16.5) - Fixed Assets Sum 4,163.2 (-) Negative Goo
Slide 16: Appendix: Price Trend
Appendix Price Trend Vinyls Styrenics (Unit:U$/MT) (Unit:U$/MT) 1,497 1,469 1,099 1,437 1,067 1,412 1,043 1,364 1,364 1,330 970 945 1,237 1,185 841 841 898 887 1,123 1,115 834 1,084 1,075 790 760 1,023 775 818 976 984 987 786755 723 786 949 933 902 620 650 740 850 818 740 732 809 600 727 542 607607