Lg Chem Ltd. · KRX:051910
Lg Chem — Q1 2019 Earnings Presentation
19 slides from Lg Chem's earnings presentation, Apr 24, 2019
Slide 1: 1Q 2019 Business Results & Outlook
April 24, 2019 1Q 2019 Business Results & Outlook
Slide 2: Contents
1Q 2019 Earnings Summary 4~5 Results & Outlook by Business 6~9 Appendix 10~18 - Sales & Operating Profit by Business - CAPEX / R&D Expenses - Income Statements / Financial Position / Cash Flows - Ethylene / PE Demand & Supply - Quarterly / Monthly Price Trends
Slide 3: 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). Forecasts an
Slide 4: 1Q 2019 Business Results: Income Statements
1Q 2019 Business Results Income Statements (Unit:KRW bn) 2018 2019 YoY QoQ 1Q 2Q 3Q 4Q 1Q Sales 6,554 7,052 7,235 7,343 6,639 +1.3% -9.6% OP 651 703 602 290 275 -57.7% -4.9% (%) 9.9% 10.0% 8.3% 3.9% 4.1% EBITDA 1,006 1,065 975 684 682 -32.2% -0.3% (%) 15.3% 15.1% 13.5% 9.3% 10.3% Pre-tax Income 653
Slide 5: 1Q 2019 Business Results: Financial Position
1Q 2019 Business Results Financial Position Balance Sheet Financial Ratios (Unit:KRW tn) 2017 2018 1Q 2019 QoQ 2017 2018 1Q 2019 QoQ Liabilities / Asset 25.04 28.94 31.21 +7.8% 53.3% 67.1% 81.5% +14.4%p Equity Cash and 2.78 2.56 3.12 +22.1% Debt / Equity 18.6% 30.7% 40.1% +9.4%p Equivalents Net Debt
Slide 6: Results & Outlook by Business: Petrochemicals
Results & Outlook by Business (After reorganization) Petrochemicals (Unit:KRW bn) 4,403 4,384 Sales 4,100 4,101 3,749 NCC/PO 34% 34% 35% 31% 30% PVC/Plasticizer 13% 14% 15% 15% 16% ABS 31% 30% 30% 30% 31% Acrylate/SAP 11% 11% 12% 10% 12% Rubber/ Specialty Polymers 10% 11% 11% 12% 11% 1Q 2018 2Q 2018
Slide 7: Results & Outlook by Business: Energy Solutions
Results & Outlook by Business Energy Solutions (Unit:KRW bn) 2,077 1,704 1,650 1,494 Energy Solution 1,245 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Operating Profit 2 27 84 96 -148 (%) (0.2%) (1.8%) (4.9%) (4.6%) (-9.0%) [Analysis] [Outlook] Loss recorded due to one-off loss of domestic ESS fire
Slide 8: Results & Outlook by Business: Advanced Materials
Results & Outlook by Business (After reorganization) Advanced Materials (Unit:KRW bn) 1,222 1,247 1,234 1,107 1,137 Advanced Materials 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Operating Profit 29 20 31 -8 4 (%) (2.6%) (1.7%) (2.5%) (-0.7%) (0.3%) [Analysis] [Outlook] Slightly improved profitability
Slide 9: Results & Outlook by Business: Life Sciences / Farm Hannong
Results & Outlook by Business Life Sciences / Farm Hannong (Unit:KRW bn) 131 144 151 Life Sciences 135 158 237 228 188 Farm Hannong 92 83 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Operating Profit Life Sciences 7 16 13 14 12 (%) (5.3%) (10.5%) (9.8%) (8.5%) (8.2%) 45 11 -19 -23 38 Farm Hannong (19.2%)
Slide 10: Sales & Operating Profits by Business
Appendix Sales & Operating Profits by Business Before reorganization (Unit:KRW bn) After reorganization (Unit:KRW bn) 2018 2019 2018 2019 LG CHEM LG CHEM 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q Sales 6,554 7,052 7,235 7,343 28,183 6,639 Sales 6,554 7,052 7,235 7,343 28,183 6,639 Operating Profits 651 703 602
Slide 11: Sales & Operating Profits by Business
Appendix Sales & Operating Profits by Business (Unit:KRW bn) 2016 2017 2018 2019 LG CHEM 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 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 7,235 7,343 28,183 6,639 Operating Profits 458 613 460 462 1,992 797 727 790 615 2,929 651 7
Slide 12: CAPEX / R&D Expenses
Appendix CAPEX / R&D Expenses CAPEX R&D Expenses (Unit:KRW tn) (Unit:KRW bn) 2017 2018 4Q 2018 1Q 2019 2017 2018 4Q 2018 1Q 2019 Basic Basic Materials & 0.7 1.5 0.8 0.4 Materials & 164 178 48 45 Chemicals Chemicals Energy Energy 1.0 1.9 0.8 0.6 299 320 87 90 Solutions Solutions I&E Materials 0.2 0.4
Slide 13: Income Statements
Appendix Income Statements (Unit:KRW bn) 2016 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 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 7,235 7,343 28,183 6,639 Cost of Sales 3,940 4,074 4,091 4,490 16,595 5,073 5,011 4,940 5,110 20,135 5,212 5,580 5,868 6
Slide 14: Financial Position
Appendix Financial Position (Unit:KRW bn) 2016 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Assets 18,860 19,826 20,040 20,487 22,171 22,671 23,708 25,041 26,416 27,399 28,419 28,944 31,212 Cash and 3,164 2,649 2,878 2,207 1,909 2,107 2,400 2,779 3,132 2,830 3,333 2,557 3,122 Equivalents A/
Slide 15: Cash Flows
Appendix Cash Flows (Unit:KRW bn) 2016 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Cash at Beginning 2,694 3,164 2,649 2,878 2,694 2,207 1,909 2,107 2,400 2,207 2,779 3,132 2,830 3,333 2,779 2,557 of Period Operating / 434 -94 89 95 524 0 442 350 546 1,337 -831 -662 289 -798 -2,001 -903 In
Slide 16: Ethylene / PE Demand Supply
Appendix Ethylene / PE Demand Supply Ethylene Polyethylene (Unit : million tons) (Unit : million tons) 220 100% 150 140% 200 180 90% 120% 160 100 140 120 80% 100% 100 80 50 60 70% 80% 40 20 0 60% 0 60% 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) 2023(e) 2017 2018 2019(e) 2020(e) 2021(e) 2022(e) 2023(e
Slide 17: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,305 1,334 1,331 1,351 2,024 2,018 2,009 1,285 1,963 1,898 1,942 1,896 1,196 1,230 1,228 1,213 1,182 1,887 1,221 1,180 1,087 1,929 1,793 1,726 1,100 1,227 1,204 1,136 1,060 1,058 1,745 1,165 1,170 1,167 1,673 1,625 1,029 1,
Slide 18: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,118 2,050 2,048 2,041 1,385 2,024 1,374 1,340 1,380 2,005 2,018 2,031 1,369 1,975 1,288 1,336 1,943 1,287 1,890 1,268 1,288 1,919 1,919 1,855 1,215 1,236 1,219 1,823 1,220 1,210 1,190 1,803 1,803 1,886 1,165 1,248 1,182 1,173 1,165 1,75
Slide 19: LG Chem contact details
@ LG Ch em 07336 LG Twin Towers 128, Yeoui-daero, Yeong deung po-gu, Seoul | Tel.02-3773-1114 | www.\gchem.com 2019 LG Chem ed