Lg Chem Ltd. · KRX:051910
Lg Chem — Q1 2017 Earnings Presentation
14 slides from Lg Chem's earnings presentation, May 2017
Slide 1: 1Q 2017 Business Results & Outlook
1Q 2017 Business Results & Outlook May, 2017
Slide 2: Disclaimer
Disclaimer The business results for the first quarter of 2017 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 Fin
Slide 3: Table of Contents
Table of Contents 1Q 2017 Business Results 1 Divisional Results & Outlook 3 Appendix 6 - Divisional Sales & Operating Profit - Borrowing & Cash Flow - CAPEX & R&D Expenses - Ethylene/PE Supply & Demand - Quarterly Price Trends - Monthly Price Trends / 12
Slide 4: 1Q 2017 Business Results: Income Statements
1Q 2017 Business Results Income Statements (Unit: KRW bn) Classification ’16.1Q ’16.4Q ’17.1Q YoY QoQ Sales 4,874 5,512 6,487 33.1% 17.7% Operating Profit 458 462 797 74.1% 72.6% (%) (9.4) (8.4) (12.3) EBITDA 780 805 1,151 47.7% 43.0% (%) (16.0) (14.6) (17.8) Pre-tax Income 423 358 698 65.0% 95.0% (
Slide 5: 1Q 2017 Business Results: Financial Position
1Q 2017 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’16 ’17.1Q Change ’16 ’17.1Q (End) (End) Classification Change (End) (End) Asset 20,487 22,171 8.2% Borrowings / 20.6 21.1 0.5%p Equity (%) Cash and 2,207 1,909 -13.5% equivalents Net borrow
Slide 6: Divisional Basic Materials & Chemicals
Divisional Results & Outlook Basic Materials & Chemicals Business results Analysis (Unit: KRW bn) Analysis • Quarterly earnings recorded historical high on the back of restocking demand due to rise in oil prices, improved product spreads led by tight supply/demand as well as solid performance in Chi
Slide 7: Divisional I&E Materials/Energy Solutions
Divisional Results & Outlook I&E Materials/Energy Solutions Business results Analysis (Unit: KRW bn) Analysis • Energy : Despite continuing growth in automotive battery, overall Solutions sales and profitability declined QoQ due to weak season in small size/ ESS batteries 1,059 999 814 • I&E : Busin
Slide 8: Divisional Life Sciences/Farm Hannong
Divisional Results & Outlook Life Sciences/Farm Hannong Business results Analysis (Unit: KRW bn) Analysis • Life : Profitability improved significantly thanks to sales growth Sciences of major products( Yvoire, Zemiglo and others) and delay in execution of expenses due to the re-checking for R&D 129
Slide 9: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2016 2017 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 4,874 5,219 5,054 5,512 20,659 6,487 6,487 Operating Profit 458 612 460 462 1,992 797 797 (%) 9.4% 11.7% 9.1% 8.4% 9.6% 12.3% 12.3% EBITDA 778 949 796 804 3,327 1,151 1,151
Slide 10: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’16 ’17.1Q ’16 ’17.1Q (End) (End) Classification (Acc.) (Acc.) Total 2,891 3,147 Beginning Cash 2,694 2,207 (Overseas Subsidiaries) (1,892) (1,859) 100% 100% Operating/Investing 524 0 KRW Currency 521
Slide 11: CAPEX & R&D Expenses
Appendix CAPEX & R&D expenses CAPEX R&D expenses (Unit: KRW bn) (Unit: KRW bn) Classification ’15 ’16 ’17.1Q Classification ’15 ’16 ’17.1Q (Acc.) (Acc.) (Acc.) (Acc.) (Acc.) (Acc.) Basic New / Expansion 328 103 38 Basic Materials 132 150 40 Materials & Maintenance 385 289 50 & Chemicals Chemicals To
Slide 12: Ethylene/PE Supply & Demand
Appendix Ethylene/PE Supply & Demand Demand (Global) Supply (Global) Demand/Supply (Global,%) Demand (Global) Supply (Global) Demand/Supply (Global,%) Demand (Asia) Supply (Asia) Demand/Supply (Asia,%) Demand (Asia) Supply (Asia) Demand/Supply (Asia,%) (Unit : Million Tons) (Unit : Million Tons) 200
Slide 13: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit:USD/MT) (Unit:USD/MT) 2,978 2,719 1,400 1,383 1,273 1,285 1,344 1,226 1,935 1,175 1,157 1,172 1,221 1,898 1,131 1,124 1,168 1,207 1,139 1,141 1,148 1,165 1,648 1,656 1,024 1,117 1,095 1,129 1,133 1,066 1,530 1,473 995 1,019 1,028 1,445 1,432 1,562 993 1,391 1,38
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 3,233 3,038 3,038 1,316 1,323 2,940 1,305 1,230 1,284 1,310 1,168 1,197 1,180 1,230 1,235 1,197 1,160 1,200 1,109 1,164 1,178 1,167 1,1881,194 2,663 1,099 1,150 1,123 1,158 1,155 1,149 1,153 1,187 1,137 1,140 1,0701,083 1,104 1,155 1,134