Lg Chem Ltd. · KRX:051910
Lg Chem — Q2 2018 Earnings Presentation
14 slides from Lg Chem's earnings presentation, September 2018
Slide 1: 2Q 2018 Business Results & Outlook
2Q 2018 Business Results & Outlook September, 2018
Slide 2: Disclaimer
Disclaimer The business results 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 Financial Reporting Standards). F
Slide 3: Table of Contents
Table of Contents 2Q 2018 Earnings Summary 1-2 Results & Outlook by Business 3-5 Appendix 6-11 - Sales & Operating Profit by Business - Borrowings & Cashflow - CAPEX / R&D Expenses - Ethylene/PE Demand & Supply - Quarterly Price Trends - Monthly Price Trends / 12
Slide 4: 2Q 2018 Business Results Income Statements
2Q 2018 Business Results Income Statements (Unit: KRW bn) Classification 2Q ’17 1Q ’18 2Q ’18 YoY QoQ Sales 6,382 6,554 7,052 10.5% 7.6% Operating Profit 727 651 703 -3.2% 8.1% (%) (11.4) (9.9) (10.0) EBITDA 1,074 1,006 1,065 -0.8% 5.9% (%) (16.8) (15.3) (15.1) Pre-tax Income 730 653 644 -11.7% -1.4
Slide 5: 2Q 2018 Business Results Financial Position
2Q 2018 Business Results Financial Position Balance Sheet Financial Ratios (Unit: KRW bn) ’17 1Q’18 2Q’18 Change ’17 1Q’18 2Q’18 (End) (End) (End) Change (End) (End) (End) Asset 25,041 26,416 27,399 3.7% Debt / Equity 18.6 25.7 30.1 4.4%p Cash and 2,779 3,132 2,830 -9.6% equivalents Net Debt/ 1.6 6.
Slide 6: Results & Outlook by Business: Basic Materials & Chemicals
Results & Outlook by Business Basic Materials & Chemicals Performance Breakdown Analysis & Outlook (Unit: KRW bn) Analysis • Despite the rise in feedstock prices, sales was posted historical high and profits was improved due to increased premium 4,671 downstream business and seasonality 30% 30% 4,31
Slide 7: Results & Outlook by Business: I&E Materials/Energy Solutions
Results & Outlook by Business I&E Materials/Energy Solutions Performance Breakdown Analysis & Outlook (Unit: KRW bn) Analysis • Energy : Sales was posted historic-high and profitability was Solutions improved from an increase in EV sales, growth of ESS market in Korea, and an expansion of new applic
Slide 8: Results & Outlook by Business: Life Sciences/Farm Hannong
Results & Outlook by Business Life Sciences/Farm Hannong Performance Breakdown Analysis & Outlook (Unit: KRW bn) Analysis • Life : Performance was improved due to increase in sales of key Sciences products and newly launched product (Eucept: biosimilar 131 of Enbrel) Life 135 151 Sciences • Farm : A
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 2Q Sales 4,874 5,219 5,054 5,512 20,659 6,487 6,382 6,397 6,432 25,698 6,554 7,052 Operating Profit 458 612 460 462 1,992 797 727 790 615 2,929 651 703 (%) 9.4% 11.7% 9.1%
Slide 10: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Debt Cashflow (Unit : KRW bn) (Unit: KRW bn) 1Q’18 2Q’18 Classification ’17 1Q’18 2Q’18 Classification 2017 (End) (End) (End) (End) (End) Total Beginning Cash 2,207 2,779 3,132 (Overseas Subsidiaries) 3,045 4,236 5,114 (1,686) (1,854) (2,116) Operations/Investment 1,3
Slide 11: CAPEX & R&D expenses
Appendix CAPEX & R&D expenses CAPEX R&D expenses (Unit: KRW bn) (Unit: KRW bn) 2016 2017 1Q ’18 2Q ‘18 Cn 2016 2017 1Q ’18 2Q ‘18 Basic New / Expansion 103 324 116 229 Basic 150 164 40 43 Materials & Maintenance 289 345 49 104 Materials & Chemicals Chemicals (1.0%) (0.9%) (0.9%) (0.9%) Total 392 669
Slide 12: Ethylene/PE Demand & Supply
Appendix Ethylene/PE Demand & Supply Ethylene Polyethylene (Unit : Million Tons) (Unit : Million Tons) 220 100% 150 200 120% 180 90% 160 100 140 100% 120 80% 100 80 50 80% 60 70% 40 20 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 (G
Slide 13: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,334 1,331 2,024 1,285 1,305 2,018 1,942 1,963 1,230 1,228 1,898 1,929 1,221 1,196 1,180 1,213 1,896 1,227 1,793 1,090 1,170 1,204 1,745 1,165 1,167 1,673 1,100 1,099 1,093 1,094 1,677 1,594 983 1,413 936 926 1,336 1,327 1,
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 3,233 1,400 3,038 3,038 1,374 1,385 1,316 1,323 1,345 1,340 1,369 2,940 1,321 1,288 1,336 1,291 1,280 1,310 1,235 1,268 1,287 1,230 1,2231,2351,238 1,247 1,2151,2481,220 1,236 1,219 2,663 1,1881,1941,1871,205 1,205 1,2101,212 1,190 1,180