Ls Electric Co., Ltd. · KRX:010120
Ls Electric — Q3 2016 Earnings Presentation
26 slides from Ls Electric's earnings presentation, 2016
Slide 1: 3Q16 Review & Outlook
Sauturnc SMART ENERGY 3Q16 Review & Outlook LSis
Slide 2: Disclaimer
Disclaimer This presentation material is prepared for investors’ reference, based on data that have not been filed with the financial supervisory commission. Actual business performance may not necessarily be consistent with the projections herein, as a result of unexpected changes in the market env
Slide 3: Total Results
Total Results
Slide 4: 3Q '16 Total Results
3Q ‘16 Total Results ◆ Sales Y-o-Y 48.9bwn decreased(△8.5%), Q-o-Q 1.6bwn decreased(△0.3%) ◆ Operating Profit Y-o-Y 24.1bwn decreased(△44.5%), Q-o-Q 1.8bwn decreased(△5.6%) Income Statement (unit : bwn) Sales & OP (unit : bwn) Segment Q3 2015 Q2 2016 Q3 2016 Y-o-Y Q-o-Q Sales 573 526 524 △8.5% △0.3%
Slide 5: 3Q '16 Sales Breakdown
3Q ‘16 Sales Breakdown Breakdown by Business (unit : bwn) ◆ Headquarters - Electric Equipment : Volume decreased due to (9.8%) economic struggle, but improving profitability by (1.9%) high-end market (9.8%) (7.9%) (11.9%) (2.0%) (2.5%) - Electric Infra : Domestic volume is improving, but business ri
Slide 6: 3Q '16 Financial Position
3Q ‘16 Financial Position ◆ Total assets 2,222bwn (Y-o-Y 15.8bwn increased, Q-o-Q 21.5bwn increased) Total liabilities 1,185bwn (Y-o-Y 12.8bwn decreased, Q-o-Q 5.3bwn increased) ◆ Total liabilities/Equity posted 114%, net Debts ratio dropped 14%p(Y-o-Y, 44%→30%) Finacial Statement (unit : bwn) Finan
Slide 7: Business Results & Outlook
Business Results & Outlook
Slide 8: Electric Equipment
Electric Equipment 3Q ‘16 Results 4Q ‘16 & ‘17 Outlook ◆ Sales Y-o-Y 10.1% decreased, Q-o-Q 3.7% decreased [ Market ] ◆ OP Y-o-Y 10.7% decreased, Q-o-Q 2.8% increased - Sustained favorable demand in renewable energy - Volume decreased due to economic struggle, market but improved profitability by hi
Slide 9: Electric Infra(T&D)
Electric Infra(T&D) 3Q ‘16 Results 4Q ‘16 & ‘17 Outlook Sales Y-o-Y 8.9% increased, Q-o-Q 9.3% increased [ Market ] - Infrastructure investment decrease due to OP Y-o-Y, Q-o-Q turned into loss-making economic recession - Domestic improved with eliminating effect of - Funding increase for investm
Slide 10: Automation
Automation 3Q ‘16 Results 4Q ‘16 & ‘17 Outlook Sales Y-o-Y 4.5% decreased, Q-o-Q 7.2% decreased [ Market ] - Capex decrease by economic recession OP Y-o-Y 18.2% decreased, Q-o-Q 14.5% increased - Smart factory market expansion by government - Volume decreased due to economic recession policy - C
Slide 11: Convergence Business
Convergence Business 3Q ‘16 Results 4Q ‘16 & ‘17 Outlook Sales Y-o-Y 32.0% decreased, Q-o-Q 2.5% decreased [ Market ] - Continuous policy driving on ESS in domestic OP Y-o-Y, Q-o-Q continuous loss (New guidance for using ESS as an emergency electric power source, Introduction private rate - Tran
Slide 12: Subsidiaries
Subsidiaries 3Q ‘16 Results 4Q ‘16 & ‘17 Outlook Sales Y-o-Y 15.8% decreased, Q-o-Q 8.7% decreased [ Market ] - Extension of competition with global players OP Y-o-Y 200% increased, Q-o-Q 32.1% decreased in Chinese renewable energy market - Volume decreased due to weak solar market - Energy infr
Slide 13: Appendix 1-1) Income Statement
Appendix 1-1) Income Statement (unit : bwn) Segment '15.3Q '16.2Q '16.3Q QoQ YoY Sales 573 526 524 4.9% △4.8% Costs of Sales △452 △415 △430 4.0% △6.0% Gross Profit 121 110 94 8.8% 0.1% (%) (21.1%) (21.0%) (18.0%) - - SG&A △67 △78 △64 17.7% 13.1% Operating Profit 54 32 30 △8.6% △22.0% (%) (9.5%) (6.1
Slide 14: Appendix 1-2) Statement of Financial position
Appendix 1-2) Statement of Financial position (unit : bwn) Segment '15.3Q '16.2Q '16.3Q QoQ YoY Total Assets 2,206 2,200 2,222 △2% △0% Current Assets 1,329 1,356 1,388 △4% 3% Cash&Cash Equivalents 244 330 381 △14% 6% Inventories 167 166 166 △2% △2% Other Current Assets 917 860 841 1% 2% Non-Current
Slide 15: Appendix 1-3) Statements of Cash Flows
Appendix 1-3) Statements of Cash Flows (unit : bwn) Segment '15.3Q '16.3Q YoY Cash and cash equivalents 332 286 △46 at the beginning of year Cash Flows From 90 245 156 Operating Activities Cash Flows From △77 △77 0 Investing Activities Capex △52 △31 21 R&D △11 △9 1 Others △15 △37 △22 Cash Flows From
Slide 16: Appendix 2) LSIS Company Introduction: LS Group
Appendix 2) LSIS Company Introduction 1) LS Group Growing into a World’s Best from the Nation’s First! Leading company in the industrial electric, electronics, materials and energy field following its separation from LG in 2003 LS History Management Philosophy LS is a faithful and reliable business
Slide 17: Appendix 2) LSIS Company Introduction: LSIS
Appendix 2) LSIS Company Introduction 2) LSIS Leader in Power Solutions, Automation & Green Business The Leading Company in the Power Distribution & Automation Industry The first to build a Smart Grid, Green Village and Green Factory Founded 1974 Sales 2,202billion(KRW) Employees 3,500 Headquarters
Slide 18: Appendix 2) LSIS History (1970s-2007)
Appendix 2) LSIS Company Introduction 3) History 1. A History of Challenging the Future (1970’s ~ 2007) 2007 Feb. Opened Marketing Subsidiary in Dubai 1970’s ’74 Jul. Established Goldstar Instrument & Electrical Co., Ltd 2005 Mar. Renamed from LG to LS Industrial Systems Sep. Constructed the Electri
Slide 19: Appendix 2) LSIS History (2007-2012)
Appendix 2) LSIS Company Introduction 3) History 2. Shifting the strategy to growth paradigm (2007 ~ 2012) 2012 May. completed a EV Relay factory in Cheongju, Korea 2008 Apr. Relocated its headquarters to Anyang LS Tower Jun. Awarded the Best Korean Company Grand Award Dec. Selected as one of the To
Slide 20: Appendix 2) LSIS History (2013-2015)
Appendix 2) LSIS Company Introduction 3) History 3. Challenging for the future of Smart Energy (2013 ~ 2015) 2015 Jan. Declared value-based management Mar. Newly constructed R&D campus in Anyang 2013 Apr. Awarded the Great Place to Work Award for 2 consecutive years May. MOU with China’s Dongfang Gr
Slide 21: Appendix 2) Mission & Vision
Appendix 2) LSIS Company Introduction 4) Mission & Vision We guarantee all our customers a safe and affluent life and a happy future by supplying them with convenient smart energy. Mission Operating Sales Profit Vision 2020 KRW 6 trillion KRW 500 billion - Boosting Our Market Position as a Power Sol
Slide 22: Appendix 3) Business Introduction
Appendix 3) Business Introduction Leading Provider of Total Electric Power, Automation & Green Business Solutions Electric Infra Business Primary Ultra-high voltage power transmission Transmission & distribution system equipment such as Power Plant Primary Substation gas insulated switchgear (GIS) <
Slide 23: Appendix 3) Business Introduction
Appendix 3) Business Introduction Automation Business From simple automation control to large-scale manufacturing facilities Factory / Building and process control, LSIS provides the (FA/PA) Discrete Automation optimal solutions to diverse industrial fields. < Main Products > - Variable Frequency Dr
Slide 24: Appendix 4) HVDC
Appendix 4) HVDC HVDC system converts AC to DC to transmit long distance and then converts back again to Connect with the AC grid with very low loss Appendix 12/14
Slide 25: Appendix 5) ESS Applications
Appendix 5) ESS Applications Appendix 13/14
Slide 26: Appendix 6) PV Power Plant
Appendix 6) PV Power Plant We provide total solution for PV Power Plant. In addition to PV products, we can provide customers with all kinds of electric power equipment manufactured by LSIS. System Components PV Power System - Module - Inverter - Balance of System - HV Switchgear - MV Switchgear Sub
LSIS (LS Electric Co., Ltd.) — Q3 2016 Earnings Presentation on 6ix