Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2015 Earnings Presentation
14 slides from Lg Chem's earnings presentation, Jan 26, 2016
Slide 1: 4Q 2015 Business Results & Outlook
4Q 2015 Business Results & Outlook January 26, 2016
Slide 2: Disclaimer
Disclaimer The business results for the forth quarter of 2015 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 Yearly Business Results 1 4Q 2015 Business Results 2 Divisional Results & Outlook 4 2016 Business Plan 6 Appendix 7
Slide 4: Yearly Business Results
Yearly Business Results Sales (KRW tn) Operating Profit (KRW bn) 22.6tn △10.5% Classification 20.2tn change change ’14 ’15 ’14 ’15 (%) (%) 1,824bn 1,311 1,824 Total 22.6 20.2 -11% +39% (5.8) (9.0) 1,311bn +39.1% Basic Materials 1,117 1,677 17.3 14.6 -15% +50% & Chemicals (6.5) (11.5) I&E 134 146 2.8
Slide 5: 4Q 2015 Business Results Income Statements
4Q 2015 Business Results Income Statements (Unit: KRW bn) Classification ’14.4Q ’15.3Q ’15.4Q YoY QoQ Sales 5,372 5,178 5,041 -6.2% -2.6% Operating Profit 232 546 352 52.0% -35.6% (%) (4.3) (10.6) (7.0) Pre-tax Income 222 440 293 31.8% -33.4% (%) (4.1) (8.5) (5.8) Net Income 109 342 207 89.2% -39.5%
Slide 6: 4Q 2015 Business Results Financial Position
4Q 2015 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’14 ’15 Change Classification ’14 ’15 Change Asset 18,128 18,579 2.5% Total Liabilities/ 47.8 41.8 -6.0%p Cash and Equity (%) equivalents 1,748 2,694 54.1% Borrowings / 23.9 20.3 -3.6%p Liab
Slide 7: Divisional Results & Outlook: Basic Materials & Chemicals
Divisional Results & Outlook Basic Materials & Chemicals Business results Analysis (Unit: KRW bn) Analysis • Earnings declined by product price decreases due to oil prices drop 3,982 and weak seasonality 3,792 3,432 -NCC/PO : Maintained stable profits by sales increase of NCC/PO differentiated produ
Slide 8: Divisional Results & Outlook: I&E Materials/Energy Solutions
Divisional Results & Outlook I&E Materials/Energy Solutions Business results Analysis (Unit: KRW bn) Analysis - I&E : Secured solid profits through sales increase with Materials Chinese polarizer lines despite weak seasonality 711 - Energy : Profits of Mobile battery declined due to Solutions weak d
Slide 9: 2016 Business Plan
2016 Business Plan Business Plan Business Strategy (Unit: KRW bn) Basic Materials & Chemicals Classification ’15 ’16 Plan Change • Develop & Increase sales of differentiated products such as m-PE, EP • Strengthen cost competitiveness & global leading position Sales 20,207 21,700 +7.3% - Secure glo
Slide 10: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2014 2015 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 5,673 5,869 5,664 5,372 22,578 4,915 5,073 5,178 5,041 20,207 Operating Profit 362 360 358 232 1,311 362 563 546 352 1,824 OP Margin 6.4% 6.1% 6.3% 4.3% 5.8% 7.4% 11.1% 10.6
Slide 11: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’14 ’15 Classification ’14 ’15 Total 2,934 2,659 Beginning Cash 1,909 1,748 (Overseas Subsidiaries) (1,244) (1,292) 100% 100% Operating/Investing 215 1,530 KRW Currency 601 339 20% 13% Net Income 854 1
Slide 12: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’13 ’14 ’15 Plan ’15 New / Expansion 416 395 303 328 Basic Materials Maintenance 213 351 360 385 & Chemicals Total 629 746 662 713 New / Expansion 269 285 219 219 I&E Maintenance 94 122 150 141 Materials Total 363 407 369 360 New / Expansio
Slide 13: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 1,676 1,617 2,461 1,580 1,601 1,542 1,531 1,532 1,578 1,590 1,459 1,462 1,452 1,489 1,442 1,544 1,434 1,411 1,400 1,403 1,383 2,162 1,350 1,401 1,420 1,404 1,436 1,429 1,394 1,399 2,012 2,051 1,999 1,341 1,328 1,226 1,891 1,959 1,914 1,
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 1,433 1,402 1,373 1,411 1,686 1,369 1,365 1,324 1,652 1,370 1,606 1,246 1,343 1,546 1,318 1,293 1,199 1,196 1,512 1,531 1,545 1,528 1,155 1,135 1,232 1,154 1,458 1,202 1,188 1,128 1,100 1,506 1,171 1,069 1,349 1,363 1,378 1,139 1,125 1,12