Lg Chem Ltd. · KRX:051910
Lg Chem — Q1 2008 Earnings Presentation
16 slides from Lg Chem's earnings presentation, Apr 17, 2008
Slide 1: 1Q 2008 Business Results & Outlook
1Q 2008 Business Results & Outlook 2008. 4. 17
Slide 2: The business results for the 1st quarter of 2008 currently under audit review are
The business results for the 1st quarter of 2008 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. Forecasts and projections contained in this material are based on current business
Slide 3: Table of Contents
Table of Contents Business Portfolio 1 Vertical Integration 2 Quarterly Business Results 3 1Q 2008 Business Results 4 Divisional Results & Outlook 6 Appendix 9
Slide 4: Business Portfolio
Business Portfolio 2007 consolidated performance LG Chem (Sales : 13.6 tn KRW) Petrochemicals Industrial I&E (67%) Materials (17%) Materials (16%) PVC (13%) Electronic Housing Solutions (60%) Materials (10%) NCC/ Polyolefin (28%) Living Solutions (18%) Batteries (29%) ABS/PS & EP (34%) Optical Mater
Slide 5: Vertical Integration (Ethylene)
Vertical Integration (Ethylene) Yeosu Plant Daesan Plant Ethylene Ethylene 900 KMT 760 KMT 40 205 LDPE (140) ** OCU (140) 310 LLDPE (80) HDPE (300) 170 HDPE (170) LDPE (160) 160 170 EG (150) EDC (250) SM (180) 245 VCM (720) 35 VCM (180) 145 SM (500) 180 * ( ) : production capacity (KMT/yr) LG Bohai
Slide 6: Quarterly Business Results
Quarterly Business Results Consolidated Non-Consolidated (Unit:KRW bn) (Unit:KRW bn) 4.01tn 3.53tn 3.45tn 401.2 3.04tn 378.8 3.00tn 2.38tn 221.2 258.1 306.9 263.0 177.9 127.0 '07 1Q '08 1Q '07 4Q '07 1Q '08 1Q '07 4Q SALES O P SALES O P OP(before merger) 3 /13
Slide 7: 1Q 2008 Business Results: Income Statements
1Q 2008 Business Results Income Statements Consolidated Non-Consolidated (Unit : KRW bn) ’07 1Q ’08 1Q ’07 4Q YoY ’07 1Q ’08 1Q ’07 4Q YoY Sales 3,040.6 4,014.0 3,534.7 32.0% 2,380.0 3,448.1 3,003.8 44.9% Operating Profit 258.1 401.2 263.0 127.0 378.8 221.2 55.4% 198.3% (%) (8.5) (10.0) (7.4) (5.3)
Slide 8: 1Q 2008 Business Results: Balance Sheets
1Q 2008 Business Results Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’07 ’08.1Q ’07 ’08.1Q Assets 8,550.8 8,785.2 7,050.0 7,228.0 (Cash and equivalents) 590.5 411.4 466.4 323.5 Liabilities 4,506.8 4,445.3 3,171.8 3,065.5 (Borrowings) 2,367.9 2,312.6 1,361.6 1,252.1 Shareholder’s 4,0
Slide 9: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 2,835.3 ▣ PO : Merger synergy offset naphtha cost hike ABS/EP 2,380.5 31% ▣ ABS/PVC : Margin improvement as a result of entering 2,037.5 up cycle NCC/PO 32% ▣ Synthetic Rubber / BPA / Oxo-Alc
Slide 10: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 669.6 ▣ Electronic & optical 619.5 - Increased sales & earnings in polarizer due to strong LCD demand 26% Battery 26% - Strong Japanese yen resulted in additional profit 459.6 improvement 27
Slide 11: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 619.1 568.7 ▣ Total cost reduction through restructuring 540.3 - Integration/scrapping of low profit businesses Living 40% Solutions/ 44% Automotive 45% Solutions ▣ Expanded sales of hi
Slide 12: Appendix: Sales & Operating Profit (Consolidated)
Appendix Sales & Operating Profit(Consolidated) (Unit : KRW bn) 2007 2008 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 3,040.6 3,383.6 3,565.9 3,534.7 13,524.8 4,014.0 Operating Profit 258.1 292.0 374.1 263.0 1,187.2 401.2 Petrochemicals 2,037.5 2,299.5 2,396.2 2,380.5 9,113.7 2,835.3 NCC/PO 482.7 630.
Slide 13: Appendix: Sales & Operating Profit (Non-Consolidated)
Appendix Sales & Operating Profit(Non-Consolidated) (Unit : KRW bn) 2007 2008 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 2,380.0 2,644.9 2,766.6 3,003.8 10,795.3 3,448.1 Operating Profit 127.0 162.9 252.5 221.2 763.6 378.8 Petrochemicals 1,498.3 1,647.3 1,742.8 1,905.5 6,793.9 2,396.6 NCC/PO 376.3 49
Slide 14: Appendix: Borrowings & Cash Flow (Non-consolidated)
Appendix Borrowings & Cash Flow(Non-consolidated) Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’08 (P) ’07 ’08.1Q ’07 ’08.1Q Changes 1,361.6 1,252.1 -109.5 1,315.2 Beginning 115.8 466.4 Total (100%) (100%) (100%) Operating/Investing 647.2 -33.4 KRW 1,033.2 974.4 -58.8 1,000.2 Currenc
Slide 15: Appendix: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’06 Results ’07 Results ’08 Plan ’08 1Q Results New/Expansion 118.2 142.2 155.6 37.3 Maintenance 83.6 68.2 94.8 13.4 Petrochemicals Equity Investment 39.0 16.4 3.0 Total 240.8 226.7 253.4 50.8 New/Expansion 121.9 41.9 231.4 18.5 I&E Mai
Slide 16: Appendix: Price Trends
Appendix Price Trends Vinyls Styrenics (Unit:U$/MT) (Unit:U$/MT) 1,331 1,307 1,206 1,203 1,733 1,756 1,129 1,151 1,688 1,638 1,090 1,586 1,586 1,584 1,060 1,050 1,480 1011 983 1056 1,384 928 1,349 1,373 1,347 1,378 910 1,271 1,303 1,277 798 841 854 1,160 775 787 811 1,096 755 1,041 727 978 1,006 1,0