Lg Chem Ltd. · KRX:051910

Lg Chem — Non-Deal Roadshow (November 2011)

14 slides from Lg Chem's roadshow presentation, Nov 14, 2011

  1. Slide 1: Business & Market Outlook

    Business & Market Outlook Nov, 2011 / 12

  2. Slide 2: Disclaimer on audit review and forward-looking statements

    The business results for the third quarter of 2011 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 busines

  3. Slide 3: Table of Contents

    Table of Contents LG Chem at a Glance 1 3Q 2011 Business Results 3 Divisional Results & Outlook 5 Appendix 7 / 12

  4. Slide 4: LG Chem at a Glance

    LG Chem at a Glance ＊ Impressive Revenue Scale… • LG Chem was started in 1947 and is Korea’s first and largest chemical company with an established track of over 60 years 20,000 and annual revenues of KRW 19.5 trillion in 2010 19,471 15,000 • LG Chem boasts multiple production facilities and an exte

  5. Slide 5: Differentiated Competitiveness

    Differentiated Competitiveness Vertical Integration Structure Co‐existence of upstream and downstream products Naphtha Annual usage: appx. 5.5 mil MT • One of few petrochemical companies around the globe with a vertical integration structure, featuring both upstream and downstream production capabil

  6. Slide 6: 3Q 2011 Business Results: Income Statements

    3Q 2011 Business Results Income Statements (Unit: KRW bn) Classification ’10.3Q ’11.2Q ’11.3Q YoY QoQ Sales 5,021 5,700 5,886 17.2% 3.3% Operating Profits 779 775 724 ‐7.0% ‐6.6% (%) (15.5) (13.6) (12.3) Pre‐tax Income 791 786 668 ‐15.5% ‐15.1% (%) (15.7) (13.8) (11.3) Net Income 599 625 512 ‐14.6%

  7. Slide 7: 3Q 2011 Business Results: Financial Position

    3Q 2011 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’10 ’11.3Q Change Classification ’10 ’11.3Q Change Asset 12,674 14,941 17.9% Total Liabilities/ 61.6 59.1 ‐2.5%p Cash and Equity (%) equivalents 1,368 1,162 ‐15.1% Borrowings / 26.8 28.5 1.7

  8. Slide 8: Divisional Results & Outlook: Petrochemicals

    Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis ▣ Achieved favorable business results backed by differentiated 4,589 product portfolio and internal contingency program 4,345 despite margin declined in the global economic downturn 3,768 28% 26% ‐NCC/PO

  9. Slide 9: Divisional Results & Outlook: I & E Materials

    Divisional Results & Outlook I & E Materials Business results Analysis (Unit: KRW bn) • Analysis ▣ Secured profitability based on leading position in the global market despite sales decrease due to weak IT demand 1,331 1,271 1,244 ‐Optical : Maintained stable profitability based on continuous Materi

  10. Slide 10: Sales & Operating Profit

    Appendix Sales & Operating Profit (Unit: KRW bn) 2010 2011 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 4,423 5,028 5,021 4,999 19,471 5,491 5,700 5,886 17,077 Operating Profit 652 828 779 562 2,821 835 775 724 2,335 Petrochemicals 3,309 3,765 3,768 3,809 14,651 4,293 4,345 4,589 13,226

  11. Slide 11: Borrowings & Cash Flow

    Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’10 ’11.3Q Classification ’10 ’11.3Q Total 2,101 2,672 Beginning Cash 1,107 1,368 (Overseas Subsidiaries) (824) (994) 100% 100% Operating/Investing 810 ‐455 KRW Currency 162 180 8% 7% Net Income 2,200

  12. Slide 12: CAPEX Plan & Results

    Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’09 ’10 ’11 Plan ’11.3Q (YTD) New / Expansion 158 324 762 456 Petrochemicals Maintenance 132 237 263 204 Total 290 560 1,025 660 New / Expansion 472 814 973 760 I&E Maintenance 81 135 223 129 Materials Total 553 948 1,196 889 New / Expansio

  13. Slide 13: Global Position of Key Products

    Appendix Global Position of Key Products As of Nov, 2011 Item Location Capa Global Rank ABS (Acrylonitrile‐Butadiene‐Styrene) Korea, China 1,330 KMT/Yr ＊ 1st PVC (Polyvinyl Chloride) Korea, China 1,270 KMT/Yr 6th Oxo‐Alcohol Korea (Yeosu, Naju) 299 KMT/Yr 10th AA (Acrylic Acid) Korea (Yeosu, Naju) 1

  14. Slide 14: Price Trends

    Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 4,485 1,696 4,159 1,578 1,526 1,600 3,997 1,611 3,766 1,413 1,434 1,320 1,360 1,377 3,479 3,794 1,333 1,326 1,271 1,304 3,214 1,253 1,164 1,198 1,307 1,260 1,109 1,306 1,275 1,139 2,728 2,581 1,227 1,255 1,037 2,483 1,198 2,417 945 1,095 2,184 1,111 1,

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