LG Chem Ltd. · KRX:051910
LG Chem — Q1 2003 Earnings Presentation
14 slides from LG Chem's earnings presentation, Apr 23, 2003
Slide 1: 1Q 2003 Results & Business Outlook
1Q 2003 Results & Business Outlook April 23, 2003
Slide 2: Table of Contents
Table of Contents 1Q03 Results 1 Business Results & Outlook 2 Issues by Business Unit 6 Appendix 8 This material was prepared only for the convenience of our investors when the external audit of the first quarter of 2003 was not yet completed. Hence, its contents may be amended upon the results of t
Slide 3: 1Q03 Results
1Q03 Results Despite the overall economic slowdown, the increased sales prices of petrochemical products and growth in the Information & Electronics Material business contributed to the jump in sales and operating profit. Sales & Operating Profit (Unit: KRW billion) Analysis of 1Q Results Sales Oper
Slide 4: Business Results & Outlook: Petrochemicals
Business Results & Outlook Petrochemicals By raising product prices and strengthening competitiveness in cost efficiency, 1Q operating profit increased by 7% YoY. Business Results Results Analysis & Outlook (Unit: KRW billion) Sales Operating Profit • Results Analysis (1Q) - Sales rose due to the in
Slide 5: Business Results & Outlook: Performance Polymers
Business Results & Outlook Performance Polymers Although sales climbed 20%, thanks to raised sales prices of major products and efforts to expand our markets abroad, a sudden rise in the price of intermediate raw materials such as Benzene and SM undermined our profitability. Business Results Results
Slide 6: Business Results & Outlook: Industrial Materials
Business Results & Outlook Industrial Materials While sales rose despite the sluggish Building & Decorative Materials business, operating profits declined moderately due to a hike in raw materials costs. Business Results Results Analysis & Outlook (Unit: KRW billion) Sales Operating Profit • Results
Slide 7: Business Results & Outlook: Information & Electronic Materials
Business Results & Outlook Information & Electronic Materials Increased supply through improved productivity and capacity expansion led to remarkable performance. Business Results Results Analysis & Outlook (Unit: KRW billion) Sales Operating Profit • Results Analysis (1Q) -Battery: Production capac
Slide 8: Issues by Business Unit: Petrochemical Cycle
Issues by Business Unit Petrochemical Petrochemical PetrochemicalCycle Cycle The overall petrochemical industry already entered the phase of recovery given limited supply growth since 2001 while the demand in Asia increased. From the second half of 2003, the industry is likely to see an accelerated
Slide 9: Issues by Business Unit: Status and Prospects of Polarizer
Issues by Business Unit Statues and prospects of Polarizer TFT-LCD Market Outlook (Unit:million set) Business Strategy 156 CAGR 12 59% 48 16% • Expansion of supply capacity 86 70 5 LCD-TV 3 36 - In response to the rapid growth of the TFT-LCD Notebook 31 96 39% market, we plan to expand capacity to 2
Slide 10: B/S & Cash Flow
Appendix B/S & CASH FLOW (Unit: KRW billion, %) (Unit: KRW billion) B/S ’02.12 ’03.1Q ’03.12(E) 2002 2003 1Q 2003(E) Assets 3,846.1 4,095.7 4,511.5 CASH OUT 497.8 167.7 1,058.2 Accounts and notes receivable (net)1) 311.1 378.5 328.9 Inventories 332.0 380.9 355.7 Investment 332.6 79.5 836.7 Investmen
Slide 11: Sales & Operating Profit (Divisional Breakdown)
Appendix Sales & Operating Profit (Divisional Breakdown) (Unit: KRW billion) Sales Operating Profit ’02 1Q ’02 ’03 1Q ’03(E) ’02 1Q ’02 ’03 1Q ’03(E) Petrochemicals 406.4 1,664.2 447.8 1,695.7 52.5 150.7 56.1 159.0 PVC/Plasticizer 272.7 1,128.7 300.3 36.1 102.2 42.0 Acrylate 63.2 276.2 81.2 8.3 31.0
Slide 12: Balance and Estimation of Borrowings
Appendix Balance and estimation of borrowings (Unit : billion, %) Balance Dec 31, 2003(E) Dec 31, 2002 Mar 31, 2003 Change Total 1,291.6 1,346.3 54.9 1,591.6 (%) (100) (100) (100) KRW Currency 1,090.5 1,138.3 48.0 1,291.6 (%) (84) (85) (81) C P - - - 38.0 C B 1,030.0 1,080.0 50.0 1,200.0 Others 60.3
Slide 13: CAPEX Plan and Result
Appendix CAPEX Plan and Result (Unit: KRW billion) ’02 Results ’03 Plan ’03 1Q New/Expansion 7.8 12.5 0.7 Maintenance 32.9 32.9 4.5 Petrochemicals Equity Investment - 18.1 - Total 40.7 63.5 5.2 New/Expansion 21.2 40.0 5.1 Performance Maintenance 21.7 19.9 4.4 Polymers Equity Investment 22.4 11.9 11.
Slide 14: Raw Materials & Product Price
Appendix Raw materials & Product price Raw material price trend Product price trend* (Unit:U$/Ton) (Unit:U$/Ton) 1056 ABS 1,000 910 910 581 883 600 Ethylene 463 420 Benzene 800 406 511 719 741 625 LDPE 379 EDC 612 400 392 367 383 598 PVC 386 672 600 612 340 350 543 568 531 272 288 497 200 190 400 ’0