Lg Chem Ltd. · KRX:051910
Lg Chem — Q2 2019 Earnings Presentation
18 slides from Lg Chem's earnings presentation, Jul 24, 2019
Slide 1: 2Q 2019 Business Results & Outlook
July 24, 2019 2Q 2019 Business Results & Outlook
Slide 2: Contents
2Q 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: 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
Slide 4: 2Q 2019 Business Results Income Statements
2Q 2019 Business Results Income Statements (Unit:KRW bn) 2018 2019 YoY QoQ 2Q 3Q 4Q 1Q 2Q Sales 7,052 7,235 7,343 6,639 7,177 +1.8% +8.1% OP 703 602 290 275 268 -62.0% -2.9% (%) 10.0% 8.3% 3.9% 4.1% 3.7% EBITDA 1,065 975 684 682 725 -31.9% +6.3% (%) 15.1% 13.5% 9.3% 10.3% 10.1% Pre-tax Income 644 48
Slide 5: 2Q 2019 Business Results Financial Position
2Q 2019 Business Results Financial Position Balance Sheet Financial Ratios (Unit:KRW tn) 2018 1Q 2019 2Q 2019 QoQ 2018 1Q 2019 2Q 2019 QoQ Liabilities / Asset 28.94 31.21 32.44 +3.9% 67.1% 81.5% 87.7% +6.2%p Equity Cash and 2.56 3.12 2.67 -14.6% Debt / Equity 30.7% 40.1% 49.1% +9.0%p Equivalents Net
Slide 6: Results & Outlook by Business: Petrochemicals
Results & Outlook by Business Petrochemicals (Unit:KRW bn) 4,402 4,384 Sales 4,100 3,936 3,749 NCC/PO 34% 34% 31% 32% 30% PVC/Plasticizer 13% 14% 15% 16% 14% ABS 31% 30% 30% 31% 31% Acrylate/SAP 11% 11% 12% 12% Rubber/ 12% Specialty Polymers 11% 11% 12% 11% 11% 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 201
Slide 7: Results & Outlook by Business: Energy Solutions
Results & Outlook by Business Energy Solutions (Unit:KRW bn) 2,077 2,009 Energy Solutions 1,704 1,650 1,494 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Operating Profit 27 84 96 -148 -128 (%) (1.8%) (4.9%) (4.6%) (-9.0%) (-6.4%) [Analysis] [Outlook] Loss recorded due to an increase in fixed cost, Pr
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 1,137 Materials 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Operating Profit 20 31 -8 4 19 (%) (1.7%) (2.5%) (-0.7%) (0.3%) (1.5%) [Analysis] [Outlook] Slightly improved sales and profitability due to Sal
Slide 9: Results & Outlook by Business: Life Sciences / Farm Hannong
Results & Outlook by Business Life Sciences / Farm Hannong (Unit:KRW bn) 144 151 Life Sciences 154 135 158 Farm Hannong 228 188 170 92 83 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Operating Profit Life Sciences 16 13 14 12 11 (%) (10.5%) (9.8%) (8.6%) (8.2%) (7.1%) 12 -19 -23 38 9 Farm Hannong (6.1%)
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 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 13,817 Operating Profits 797 727 790 615 2,929 651 703 602 290 2,246 275 268 543 (%) 12.3% 11.4% 12.3% 9.6
Slide 11: CAPEX / R&D Expenses
Appendix CAPEX / R&D Expenses CAPEX R&D Expenses (Unit:KRW tn) (Unit:KRW bn) 2017 2018 1Q 2019 2Q 2019 2017 2018 1Q 2019 2Q 2019 Petrochemicals 0.6 1.4 0.4 0.4 Petrochemicals 132 144 34 39 Energy Energy 1.0 1.9 0.6 0.7 299 320 98 98 Solutions Solutions Advanced Advanced 0.2 0.5 0.1 0.2 213 235 42 52
Slide 12: Income Statements
Appendix Income Statements (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 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 13,817 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 11,499 1,414 1,371 1,457 1,322 5,564 1,
Slide 13: Financial Position
Appendix Financial Position (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Assets 22,171 22,671 23,708 25,041 26,416 27,399 28,419 28,944 31,212 32,436 Cash and 1,909 2,107 2,400 2,779 3,132 2,830 3,333 2,557 3,122 2,667 Equivalents A/R 3,961 4,184 4,523 4,449 4,709 5,146 4,949 4,381 4,6
Slide 14: Cash Flows
Appendix Cash Flows (Unit:KRW bn) 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 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 2,557 Cash Balance Operating / 0 442 350 546 1,337 -831 -662 289 -798 -2,001 -903 -1,490 -2,392 Investing Activities Operating Profits 797
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 1,305 1,334 1,331 1,351 2,024 2,018 2,009 1,285 1,963 1,898 1,942 1,896 1,196 1,230 1,228 1,213 1,221 1,180 1,182 1,087 1,887 1,058 1,793 1,929 1,227 1,204 1,060 1,745 1,726 1,100 1,170 1,165 1,167 1,029 1,673 1,625 1,136 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 1,288 1,919 1,919 1,890 1,268 1,287 1,288 1,855 1,220 1,210 1,236 1,823 1,215 1,219 1,803 1,803 1,886 1,190 1,182 1,165 1,248 1,173 1,165 1,15
Slide 18: LG Chem contact details
@ LG Ch em 07336 LG Twin Towers 128, Yeoui-daero, Yeong deung po-gu, Seoul | Tel.02-3773-1114 | www.lgchem.com 2 hem All ec