Lg Chem Ltd. · KRX:051910
Lg Chem — Q1 2018 Earnings Presentation
14 slides from Lg Chem's earnings presentation, Apr 30, 2018
Slide 1: 1Q 2018 Business Results & Outlook
1Q 2018 Business Results & Outlook April 30, 2018
Slide 2: Disclaimer
Disclaimer The business results for the first quarter of 2018 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 2018 Business Results 1-2 Divisional Results & Outlook 3-5 Appendix 6-11 - Divisional Sales & Operating Profit - Borrowings & Cash Flow - CAPEX / R&D Expenses - Ethylene/PE Demand & Supply - Quarterly Price Trends - Monthly Price Trends / 12
Slide 4: 1Q 2018 Business Results: Income Statements
1Q 2018 Business Results Income Statements (Unit: KRW bn) Classification 1Q ’17 4Q ’17 1Q ’18 YoY QoQ Sales 6,487 6,432 6,554 1.0% 1.9% Operating Profit 797 615 651 -18.3% 5.8% (%) (12.3) (9.6) (9.9) EBITDA 1,151 972 1,006 -12.6% 3.5% (%) (17.8) (15.1) (15.3) Pre-tax Income 698 434 653 -6.5% 50.6% (
Slide 5: 1Q 2018 Business Results: Financial Status
1Q 2018 Business Results Financial Status Financial Position Financial Ratios (Unit: KRW bn) Classification ’17 1Q’18 Change ’17 1Q’18 (End) (End) Classification Change (End) (End) Asset 25,041 26,416 5.5% Borrowings / 18.6 25.7 7.1%p Equity (%) Cash and 2,779 3,132 12.7% equivalents Net borrowings/
Slide 6: Divisional Basic Materials & Chemicals
Divisional Results & Outlook Basic Materials & Chemicals Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Despite improvement in some products’ spread, profitability was maintained QoQ due to strong KRW and increase 4,495 4,359 in feedstock cost 30% 4,297 30% -NCC/PO
Slide 7: Divisional I&E Materials/Energy Solutions
Divisional Results & Outlook I&E Materials/Energy Solutions Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Energy : Despite decrease of ESS / small size battery shipment Solutions due to seasonality, EV battery sales increased with strong market demand for EV 1,253
Slide 8: Divisional Life Sciences/Farm Hannong
Divisional Results & Outlook Life Sciences/Farm Hannong Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Life : Profit improved thanks to the milestone income through Sciences new drug approval in overseas despite decrease in vaccine 129 sales 131 Life Sciences • Farm
Slide 9: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2016 2017 2018 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q Sales 4,874 5,219 5,054 5,512 20,659 6,487 6,382 6,397 6,432 25,698 6,554 Operating Profit 458 612 460 462 1,992 797 727 790 615 2,929 651 (%) 9.4% 11.7% 9.1% 8.4% 9.6% 12
Slide 10: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) 1Q’18 ’17 4Q’17 1Q’18 Classification ’16 ’17 Classification (Acc.) (Acc.) (End) (End) (End) (End) Total Beginning Cash 2,207 2,400 2,779 (Overseas Subsidiaries) 2,891 3,045 4,236 (1,892) (1,686) (1,854) Operating/Inv
Slide 11: CAPEX & R&D expenses
Appendix CAPEX & R&D expenses CAPEX R&D expenses (Unit: KRW bn) (Unit: KRW bn) Classification ’16 ’17 4Q ’17 1Q ‘18 Classification ’16 ’17 4Q ’17 1Q ‘18 (Acc.) (Acc.) (Acc.) (Acc.) Basic New / Expansion 103 324 192 116 Basic Materials & 150 164 41 40 Materials & Maintenance 289 345 143 49 Chemicals
Slide 12: Ethylene/PE Demand & Supply
Appendix Ethylene/PE Demand & Supply Ethylene Polyethylene (Unit : Million Tons) (Unit : Million Tons) 200 100% 150 120% 150 90% 100 100% 100 80% 50 80% 50 70% 0 60% 0 60% '17 '18(e) '19(e) '20(e) '21(e) '22(e) '17 '18(e) '19(e) '20(e) '21(e) '22(e) Demand (Global) Supply (Global) Demand/Supply (Glo
Slide 13: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,305 1,334 1,285 1,273 1,935 1,942 1,963 2,024 1,157 1,230 1,228 1,898 1,896 1,172 1,221 1,196 1,180 1,124 1,139 1,167 1,227 1,793 1,100 1,170 1,677 1,745 1,141 1,148 1,165 1,093 1,656 1,095 1,129 1,090 1,099 1,133 1,066 1,
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 3,233 1,323 1,374 3,038 3,038 1,316 1,345 1,340 2,940 1,321 1,288 1,2801,291 1,268 1,310 1,235 1,230 1,223 1,235 1,238 1,247 1,215 2,663 1,188 1,187 1,205 1,205 1,248 1,220 1,153 1,194 1,133 1,147 1,195 1,128 1,176 1,219 1,155 1,139 1,173