Lg Chem Ltd. · KRX:051910
Lg Chem — Q2 2007 Earnings Presentation
15 slides from Lg Chem's earnings presentation, Jul 18, 2007
Slide 1: 2Q 2007 Business Results & Outlook
2Q 2007 Business Results & Outlook
Slide 2: Audit review and forward-looking notice
The business results for the 2nd quarter of 2007 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 2Q 2007 Business Results Divisional Results & Outlook Subsidiaries’ Results & Outlook LGPC Merger Effect
Slide 4: 2Q 2007 Business Results Income Statements
2Q 2007 Business Results Income Statements Non-Consolidated Consolidated (Unit : KRW bn) ’ ’ ’ YoY ’ ’ ’ YoY Sales Operating Profit (%) Recurring Profit * (%) Equity Method Gains Net Income Total Net Income * Recurring Profit stands for “Profit from continuing operations before income tax” 1 / 12
Slide 5: 2Q 2007 Business Results Balance Sheets
2Q 2007 Business Results Balance Sheets Non-Consolidated Consolidated (Unit : KRW bn) ’06 ’07 2Q ’06 ’07 2Q Assets (Cash and equivalents) Liabilities (Borrowings) Shareholder’s Equity Total Liabilities / Equity (%) Debt / Equity (%) Interest Coverage Ratio ROE (%) ROA (%) EBITDA 2 / 12
Slide 6: Divisional Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit:KRW bn) • % '( %$ # " & $' ! "# ! ) • " , - !$ *+ , %, " % * % - & '. '# . / Operating Profit " # Margin(%) $ % & ' ( ) *+ 3 / 12
Slide 7: Divisional Industrial Materials
Divisional Results & Outlook Industrial Materials Business results Analysis (Unit:KRW bn) • & $ & + $ 0 0 + 04 1 54 1 => ?< => 79 ? : ;< > B ;< 678 @ 78 @ A 54 1 9 7< C< ? 9 7< # 1 $ 1 + D / 2 3 4 $ 5 5 + ? F ;< E< ? 7< @ 79 9 : => > 2 , @ /0 1 3 1 2 3 1 2 • & Operating 3 Profit Margin(%) GL K Z IGH
Slide 8: Divisional I & E Materials
Divisional Results & Outlook I & E Materials Business results Analysis (Unit:KRW bn) • , ' , ' 6 . 7 ' ' 8 . ] h n p kj l no h qr j m fg hi hi " 9 ' 9 ] hi rjs ] tg j ng uv $ % ) : + h y l wui zh s g ns jxo u ns ^[ ] ] tg hi j ng uv • [\ ] , ' , " ' " $ / + d _` ab c_ ab c_ eb ' 8 & " ' " . Operatin
Slide 9: Subsidiaries' Results & Outlook
Subsidiaries’ Results & Outlook Business results Analysis & Outlook (Unit: KRW bn) ’ ’ ’ Sales LG Petrochem LG Operating & < / < Petro- Profit , / (%) chemical Net Income Sales Overseas Subsidiaries 1 = 5 > Operating $ + Overseas profit (%) # 1 = # Net Income * Figures exclude marketing subsidiaries
Slide 10: LG PC Merger Effect: Operations & Strategies
LG PC Merger Effect I. Operations & Strategies Strengthen economies of scale & business competitiveness and prepare for the future growth Issues Effects Economies of scale & product portfolios - Two scale NCC plants: securing economies of scale - Well balanced product mix between up/down streams Str
Slide 11: LG Petrochemicals Merger Effect: Financials
LG Petrochemicals Merger Effect . Financials Positive effects on financial structure Financial structure Effects ~} Improve financial structure ? @% ) ) ( # @% ) ) ( - Total Liability/Equity : June ’07 106% -> Dec ’07 80% - Pay down 300 KRW billion of borrowings with LG PC’s {
Slide 12: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit (Unit : KRW bn) 2006 2007 1Q 2Q 3Q 4Q Sum 1Q 2Q 3Q 4Q Sum Sales 2,129.1 2,272.5 2,482.5 2,418.2 9,302.3 2,380.0 2,644.9 5,025.0 Operating Profit 65.6 48.1 107.1 112.3 333.9 127.0 162.6 289.9 Petrochemicals 1,364.8 1,429.6 1,582.2 1,508.2 5,884.8 1,498.3 1,647.3 3,14
Slide 13: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’06 ’07 1H Changes Beginning 371.0 115.8 Total Operating/Investing 115.8 126.8 KRW Net Income 318.8 349.7 Currency C P Depreciation 502.2 246.2 C B Working -178.5 -95.6 Others Capital Foreign CAPEX -590.5 -2
Slide 14: Appendix: Capex Plan & Results
Appendix Capex Plan & Results (Unit : KRW bn) ’05 Results ’06 Results ’07 Plan ’07 1H New/Expansion 23.7 118.2 180.6 94.0 Maintenance 69.1 83.6 59.8 31.4 Petrochemicals Equity Investment 41.2 39.0 7.5 13.8 Total 134.0 240.8 247.9 139.2 New/Expansion 17.1 14.5 44.9 6.8 Industrial Maintenance 49.1 56.
Slide 15: Vinyls and Styrenics prices
Vinyls Styrenics (Unit:U$/MT) (Unit:U$/MT) 1,331 1,638 1,586 1,586 1,584 1,480 1,129 1,151 1,412 1,437 1,067 1,060 1,090 1,050 1,364 1,364 1,384 1,349 1,271 1,303 1,277 970 1,185 1,160 887 834 910 928 841 1,075 1,096 760 798 1,041 740 786 818 854 984 1,023 987 978 775 962 723 727 906 692 863 654 678