Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (June 2008)
19 slides from Lg Chem's roadshow presentation, June 2008
Slide 1: 1Q 2008 Business Results & Outlook
1Q 2008 Business Results & Outlook June 2008
Slide 2: Audit review and forward-looking statement notice
The business results for the 1st quarter of 2008 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 Business Portfolio 1 Vertical Integration 2 Quarterly Business Results 3 1Q 2008 Business Results 4 Divisional Results & Outlook 6 Appendix 9
Slide 4: Business Portfolio
Business Portfolio 2007 consolidated performance LG Chem (Sales : 13.6 tn KRW) Petrochemicals Industrial I&E (67%) Materials (17%) Materials (16%) PVC (13%) Electronic Housing Solutions (60%) Materials (10%) NCC/ Polyolefin (28%) Living Solutions (18%) Batteries (29%) ABS/PS & EP (34%) Optical Mater
Slide 5: Vertical Integration (Ethylene)
Vertical Integration (Ethylene) Yeosu Plant Daesan Plant Ethylene Ethylene 900 KMT 760 KMT 40 205 LDPE (140) ** OCU (140) 310 LLDPE (80) HDPE (300) 170 HDPE (170) LDPE (160) 160 170 EG (150) EDC (250) SM (180) 245 VCM (720) 35 VCM (180) 145 SM (500) 180 * ( ) : production capacity (KMT/yr) LG Bohai
Slide 6: Quarterly Business Results
Quarterly Business Results Consolidated Non-Consolidated (Unit:KRW bn) (Unit:KRW bn) 4.01tn 3.53tn 3.45tn 401.2 3.04tn 378.8 3.00tn 2.38tn 221.2 258.1 306.9 263.0 177.9 127.0 '07 1Q '08 1Q '07 4Q '07 1Q '08 1Q '07 4Q SALES O P SALES O P OP(before merger) 3 /16
Slide 7: 1Q 2008 Business Results Income Statements
1Q 2008 Business Results Income Statements Consolidated Non-Consolidated (Unit : KRW bn) ’07 1Q ’08 1Q ’07 4Q YoY ’07 1Q ’08 1Q ’07 4Q YoY Sales 3,040.6 4,014.0 3,534.7 32.0% 2,380.0 3,448.1 3,003.8 44.9% Operating Profit 258.1 401.2 263.0 127.0 378.8 221.2 55.4% 198.3% (%) (8.5) (10.0) (7.4) (5.3)
Slide 8: 1Q 2008 Business Results Balance Sheets
1Q 2008 Business Results Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’07 ’08.1Q ’07 ’08.1Q Assets 8,550.8 8,785.2 7,050.0 7,228.0 (Cash and equivalents) 590.5 411.4 466.4 323.5 Liabilities 4,506.8 4,445.3 3,171.8 3,065.5 (Borrowings) 2,367.9 2,312.6 1,361.6 1,252.1 Shareholder’s 4,0
Slide 9: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 2,835.3 ▣ PO : Merger synergy offset naphtha cost hike ABS/EP 2,380.5 31% ▣ ABS/PVC : Margin improvement as a result of entering 2,037.5 up cycle NCC/PO 32% ▣ Synthetic Rubber / BPA / Oxo-Alc
Slide 10: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 669.6 ▣ Electronic & optical 619.5 - Increased sales & earnings in polarizer due to strong LCD demand 26% Battery 26% - Strong Japanese yen resulted in additional profit 459.6 improvement 27
Slide 11: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 619.1 568.7 ▣ Total cost reduction through restructuring 540.3 - Integration/scrapping of low profit businesses Living 40% Solutions/ 44% Automotive 45% Solutions ▣ Expanded sales of hi
Slide 12: Sales & Operating Profit (Consolidated)
Appendix Sales & Operating Profit(Consolidated) (Unit : KRW bn) 2007 2008 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 3,040.6 3,383.6 3,565.9 3,534.7 13,524.8 4,014.0 Operating Profit 258.1 292.0 374.1 263.0 1,187.2 401.2 Petrochemicals 2,037.5 2,299.5 2,396.2 2,380.5 9,113.7 2,835.3 NCC/PO 482.7 630.
Slide 13: Sales & Operating Profit (Non-Consolidated)
Appendix Sales & Operating Profit(Non-Consolidated) (Unit : KRW bn) 2007 2008 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 2,380.0 2,644.9 2,766.6 3,003.8 10,795.3 3,448.1 Operating Profit 127.0 162.9 252.5 221.2 763.6 378.8 Petrochemicals 1,498.3 1,647.3 1,742.8 1,905.5 6,793.9 2,396.6 NCC/PO 376.3 49
Slide 14: Borrowings & Cash Flow (Non-consolidated)
Appendix Borrowings & Cash Flow(Non-consolidated) Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’08 (P) ’07 ’08.1Q ’07 ’08.1Q Changes 1,361.6 1,252.1 -109.5 1,315.2 Beginning 115.8 466.4 Total (100%) (100%) (100%) Operating/Investing 647.2 126.6 KRW 1,033.2 974.4 -58.8 1,000.2 (76%) (
Slide 15: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’06 Results ’07 Results ’08 Plan ’08 1Q Results New/Expansion 118.2 142.2 155.6 37.3 Maintenance 83.6 68.2 94.8 13.4 Petrochemicals Equity Investment 39.0 16.4 3.0 Total 240.8 226.7 253.4 50.8 New/Expansion 121.9 41.9 231.4 18.5 I&E Mai
Slide 16: Stock information
Appendix Stock information Shareholders & Market Cap GDR Info. LG Corp. Foreign Investors Listed in LSE 33.5% 27.7% 144A GDR Reg.S GDR Institutional & Individual Investors 38.8% ORD:GDR Ratio: 1:2 Exchange: PORTAL Ticker: LGCLY US Common Stock as of Jun 16, 2008 ISIN: US5019551085 (Unit : KRW) Jun 1
Slide 17: Production capacity by product
Appendix Production capacity by product (Unit : KMT/Yr) Item Location ’04 ’06 ’07 ’08 Item Location ’04 ’06 ’07 ’08 Ethylene Yeosu 760 860 900 900 BZ Yeosu 200 225 226 226 Daesan 450 500 760 760 Daesan 180 190 280 280 Total 1,210 1,360 1,660 1,660 Total 380 415 506 506 Propylene Yeosu 370 550 580 58
Slide 18: Major products and Naphtha price trend
Appendix Major products and Naphtha price trend ($/MT) Major product prices ’08 Monthly price 2,000 ($1,915) 1,900 (Unit : $/MT) 1,800 Change ($1,723) Jan.'08 Feb Mar Apr May Jun(2W) 1,700 ($1,781) (Jan vs Jun) 1,600 ($1,687) WTI 92.9 95.7 105.4 111.4 124.5 134.7 ↑41.8 1,500 1,400 Naptha 859 867 894
Slide 19: LGC (LGPC included) OP
Appendix LGC(LGPC included) OP (KRW bn) I&E OP WTI ($/Bbl) 400 120 379 350 340 100 300 253 253 250 245 80 201 225 211 175 200 143 60 150 134 108 100 40 59 50 80 57 61 20 15 11 13 19 26 0 6 7 -1 -19 -21 ' 05.1Q 2Q 3Q 4Q ' 06.1Q 2Q 3Q 4Q ' 07.1Q 2Q 3Q 4Q ' 08.1Q -50 0 16 /16