Lg Chem Ltd. · KRX:051910

Lg Chem — Q4 2012 Earnings Presentation

15 slides from Lg Chem's earnings presentation, Jan 29, 2013

  1. Slide 1: 4Q 2012 Business Results & Outlook

    4Q 2012 Business Results & Outlook Jan 29, 2013

  2. Slide 2: Disclaimer

    Disclaimer The business results for the forth quarter of 2012 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. From the first quarter of 2012, this material shows business results a

  3. Slide 3: Table of Contents

    Table of Contents Yearly Business Results 1 4Q 2012 Business Results 2 Divisional Results & Outlook 4 2013 Business Plan 6 Appendix 8 - Divisional Sales & Operating Profit - Borrowings & Cash Flow - CAPEX Plan & Results - Quarterly Price Trends - Monthly Price Trends

  4. Slide 4: Yearly Business Results

    Yearly Business Results (Unit: KRW) 22.7tn 23.3tn 19.5tn 15.5tn 2,821bn 2,819bn 14.1tn 12.2tn 10.7tn 2,098bn 1,910bn 1,374bn 1,043bn 500bn Sales OP ※ Results from ’06~’08 are converted based on the IFRS without audit for investors’ convenience. ※ In addition, operating profits for 2011 and 2012 are

  5. Slide 5: 4Q 2012 Business Results Income Statements

    4Q 2012 Business Results Income Statements (Unit: KRW bn) Classification ’11.4Q ’12.3Q ’12.4Q YoY QoQ Sales 5,599 5,834 5,681 1.5% -2.6% Operating Profit 508 601 364 -28.4% -39.4% (%) (9.1) (10.3) (6.4) Pre-tax Income 502 585 375 -25.3% -35.9% (%) (9.0) (10.0) (6.6) Net Income 377 459 292 -22.5% -36

  6. Slide 6: 4Q 2012 Business Results Financial Position

    4Q 2012 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’11 ’12 Change Classification ’11 ’12 Change Asset 15,286 16,581 8.5% Total Liabilities/ 57.5 54.0 -3.5%p Cash and Equity (%) equivalents 1,379 1,341 -2.8% Borrowings / 26.0 27.4 1.4%p Liabi

  7. Slide 7: Divisional Results & Outlook: Petrochemicals

    Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis ▣ Overall margin declined due to weak seasonal demand, rising 4,366 feedstock costs and strengthening Korean won, etc 4,150 4,201 -NCC/PO : Recovery of PO product price slowed while naphtha price went up

  8. Slide 8: Divisional Results & Outlook: I&E Materials/Energy Solution

    Divisional Results & Outlook I & E Materials/Energy Solution Business results Analysis (Unit: KRW bn) • Analysis ▣ Diminished profits due to weak seasonality and one-off expense - I&E : While revenue decreased due to panel makers’ year-end Materials inventory adjustment, recorded relatively sound re

  9. Slide 9: 2013 Business Plan

    2013 Business Plan Business Plan Business Strategy (Unit: KRW bn)  Petrochemicals : Enhance business portfolio through technology Classification ’12 ’13 Plan • Promote market-driven business by differentiated technology - Strengthen differentiated product portfolio by cultivating technology-based b

  10. Slide 10: 2013 Business Plan: Cash Flow and CAPEX

    2013 Business Plan Cash Flow CAPEX (Unit: KRW bn) Key Investments Classification Amounts Classification Amounts Cash Inflow 2,840 (Unit: KRW bn) Total 2,120 From Operating 1,800 ▣ Petrochemicals 550 Type New / Expansion 1,360 - Yeosu : Expansion of SAP & CA/EDC Depreciation 1,040 - Daesan : Expansio

  11. Slide 11: Appendix: Divisional Sales & Operating Profit

    Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2011 2012 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 5,491 5,700 5,886 5,599 22,676 5,753 5,996 5,834 5,681 23,263 Operating Profit 831 763 717 508 2,819 447 499 601 364 1,910 Petrochemicals 4,276 4,328 4,570 4,150 17,325 4,49

  12. Slide 12: Appendix: Borrowings & Cash Flow

    Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’11 ’12 Classification ’11 ’12 Total 2,527 2,947 Beginning Cash 1,368 1,379 (Overseas Subsidiaries) (1,044) (1,024) 100% 100% Operating/Investing -96 -142 KRW Currency 475 812 19% 28% Net Income 2,170

  13. Slide 13: Appendix: CAPEX Plan & Results

    Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’10 ’11 ’12 Plan ’12 New / Expansion 320 664 743 784 Petrochemicals Maintenance 266 296 269 226 Total 586 960 1,012 1,009 New / Expansion 425 330 539 242 I&E Maintenance 78 100 89 82 Materials Total 503 430 628 324 New / Expansion 389 660 4

  14. Slide 14: Appendix: Quarterly Price Trends

    Appendix Appendix Quarterly 분기별 제품가격 Price Trends 추이 (Unit:U$/MT) (Unit:U$/MT) Acrylate/ Rubber/ NCC/PO PVC ABS/EP Plasticizer Specialty Polymers • The prices are average price of CFR FE Asia for general grade in each product group. 12 /11 12

  15. Slide 15: Appendix: Monthly Price Trends

    Appendix Monthly Price Trends (Unit:U$/MT) (Unit:U$/MT) Acrylate/ Rubber/ NCC/PO PVC ABS/EP Plasticizer Specialty Polymers • The prices are average price of CFR FE Asia for general grade in each product group. * Shows the prices on Jan 25, 2013 129 /12 12

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