Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2008 Earnings Presentation
16 slides from Lg Chem's earnings presentation, Jan 30, 2009
Slide 1: 4Q 2008 Business Results & Outlook
4Q 2008 Business Results & Outlook 2009. 1. 30
Slide 2: The business results for the 4 th quarter of 2008 currently under audit review
The business results for the 4th 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 Yearly Business Results 1 Quarterly Business Results 2 Profit Change Analysis 3 4Q 2008 Business Results 4 Divisional Results & Outlook 6 Appendix 9
Slide 4: Yearly Business Results
Yearly Business Results Consolidated Non-Consolidated (Unit:KRW bn) (Unit:KRW bn) 16.7tn 14.5tn 13.6tn 1,426 10.8tn 1,430 1,182 1,003 764 1,003 686 686 '07 '08 '07 '08 Sales OP Net income Sales OP Net income 1 / 13
Slide 5: Quarterly Business Results
Quarterly Business Results LGC + LGPC (Unit:KRW bn) 4.06tn 3.74tn 3.45tn 3.23tn 3.10tn 443 3.02tn 2.90tn 481 2.59tn 340 379 253 253 245 123 ' 071Q 2Q 3Q 4Q ' 081Q 2Q 3Q 4Q Sales OP 2 / 13
Slide 6: Profit Change Analysis
Profit Change Analysis Sales decrease -88 Inventory loss -187 -320 One time expense 443 -46 • Additional bonus • Holiday remuneration etc 123 ’08. 3Q ’08. 4Q 3 / 13
Slide 7: 4Q 2008 Business Results: Income Statements
4Q 2008 Business Results Income Statements Consolidated Non-Consolidated (Unit : KRW bn) ’07 4Q ’08 4Q ’08 3Q YoY ’07 4Q ’08 4Q ’08 3Q YoY Sales 3,535 3,727 4,581 5.4% 3,004 3,237 4,065 7.8% Operating Profit 263 45 452 221 123 443 -82.8% -44.6% (%) (7.4) (1.2) (9.9) (7.4) (3.8) (10.9) Recurring Prof
Slide 8: 4Q 2008 Business Results: Balance Sheets
4Q 2008 Business Results Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’07 ’08 ’07 ’08 Assets 8,551 9,730 7,050 8,036 (Cash and equivalents) 591 659 466 522 Liabilities 4,507 4,676 3,172 3,147 (Borrowings) 2,368 2,773 1,362 1,350 Shareholder’s Equity 4,044 5,055 3,878 4,890 Total Liab
Slide 9: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 3,380 ▣ Rapid oil price decline reflected into product prices immediately ABS/EP 27% ▣ High-cost law material inventory worsened profitability due to 2,470 lagging effect. 2,381 NCC/PO 28% 32
Slide 10: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 750 ▣ Electronics & opticals 670 654 Achieved solid sales/profit on the back of cost competitiveness, 36% despite of weak demand in the front line industry Battery 26% 23% ▣ Battery Big jump
Slide 11: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 619 619 ▣ Decrease in sales 551 - H S : Decrease in demand due to continuous depression and accelerated liquidity crisis of the construction industry Liv ing 40% 41% So lu ti o ns / - L
Slide 12: Appendix: 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 3,041 3,384 3,566 3,535 13,525 4,014 4,386 4,581 3,727 16,708 Operating Profit 258 292 374 263 1,187 401 527 452 45 1,426 Petrochemicals 2,038 2,300 2,396 2,381 9,114 2,835 3,131 3,380
Slide 13: Appendix: 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 2,645 2,767 3,004 10,795 3,448 3,738 4,065 3,237 14,488 Operating Profit 127 163 253 221 764 379 481 443 123 1,430 Petrochemicals 1,498 1,647 1,743 1,906 6,794 2,397 2,607 2,9
Slide 14: Appendix: 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 ’07 ’08 Changes 1,362 1,350 -12 1,315 Beginning 116 466 Total (100%) (100%) (100%) Operating/Investing 647 394 KRW 1,033 929 -104 1,000 Net Income 686 1,003 Currency (76%) (
Slide 15: Appendix: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’06 Results ’07 Results ’08 Plan ’08 Results New/Expansion 118 142 156 217 Maintenance 84 68 95 85 Petrochemicals Equity Investment 39 16 3 - Total 241 227 253 302 New/Expansion 122 42 231 194 I&E Maintenance 38 36 45 51 Materials Equit
Slide 16: Appendix: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,8001,858 1,720 1718 1,600 2,109 1,496 1,681 2,032 1,632 1,756 1,961 1,364 1,364 1381 1,296 1,322 1,477 1,462 1,733 1,973 1,688 1,199 1,371 1,377 1,586 1,586 1,569 1,638 1,111 1,213 1,3311,294 1,284 1,305 1,307 1,480 1,203 1,036 1,384 1,635 1,624 1,70