Lotte Chemical Titan Holdings Bhd · MYX:LCTITAN
Lotte Chemical Titan Holdings Bhd — Shareholder Meeting (June 2020)
19 slides from Lotte Chemical Titan Holdings Bhd's shareholder meeting presentation, Jun 29, 2020
Slide 1: 2020 AGM Presentation by President & CEO
2020 AGM PRESENTATION BY PRESIDENT & CEO DR. LEE DONG WOO 29th JUNE 2020 0
Slide 2: Contents
CONTENTS 1. Business Performance & Market Outlook 2. Indonesia LINE Project Update 3. Growth Strategy & Vision 4. Sustainability • Process Safety Management • COVID-19 Pandemic: Our Commitment to Society • Anti-Bribery & Anti-Corruption Framework • Plastic Applications • Sustainable Plastics 1 / 17
Slide 3: 2019yr Highlights
2019yr Highlights Operating Fundamentals Intact In 2019 • Total Revenue of RM 8.44 Bil • Net Profit of RM 443 Mil • Healthy Operating Cash Flow of RM 1.1 Bil • Strong Cash Balance of RM 3.9 Bil • Dividend Paid: 7 sen per share Operating Rate : 88% [Above World Class Record Production Volume since
Slide 4: External Business Environment Outlook
External Business Environment Outlook Significant Adverse Impact on GDP % 2019 2020 2021 COVID-19 Pandemic Global Economy 9.2 9.0 7.8 8.2 5.8 6.1 Volatile Crude Oil Volatile Naphtha Feedstock 4.8 5.0 4.3 Prices Costs 2.9 1.2 0.5 New Global & Regional Capacities Moderated Average Product WO RLD A SEA
Slide 5: Historical Polymer Margin Spreads
Historical Polymer Margin Spreads [Unit: USD/MT] Margin Spread Naphtha Polymers ASP 1,500 1,500 2017 2018 2019 2020 1,300 1,300 1,100 Average Polymer 1,100 Average Polymer Spread: Spread: USD 696/MT Average Polymer Spread: USD OP Margin: USD 614/MT 493/MT 900 14.5% 900 OP Margin: 8.2% Average Polyme
Slide 6: Business Outlook 2020yr
Business Outlook 2020yr COVID-19 Pandemic/ Low Oil Price/ Global GDP Contraction Global Lockdown Naphtha Price 1H 2020 2H 2020 1. Overall demand & sales decline 1. Business activities begin to normalize and improve Regional & global lockdown through 2nd quarter Expected lifting of major lockdown
Slide 7: Contents
CONTENTS 1. Business Performance & Market Outlook 2. Indonesia LINE Project Update 3. Growth Strategy & Vision 4. Sustainability • Process Safety Management • COVID-19 Pandemic: Our Commitment to Society • Anti-Bribery & Anti-Corruption Framework • Plastic Applications • Sustainable Plastics 6 / 17
Slide 8: Indonesia LINE Project Update
Indonesia LINE Project Update LOTTE Chemical Indonesia New Ethylene (LINE) Project 1. Prior to COVID-19 pandemic, initial target was to commence construction by late 2020 or early 2021, with expected completion in 2023. 2. Due to the significant adverse impact from COVID-19 pandemic on the global ec
Slide 9: Contents
CONTENTS 1. Business Performance & Market Outlook 2. Indonesia LINE Project Update 3. Growth Strategy & Vision 4. Sustainability • Process Safety Management • COVID-19 Pandemic: Our Commitment to Society • Anti-Bribery & Anti-Corruption Framework • Plastic Applications • Sustainable Plastics 8 / 17
Slide 10: VISION 2024 – To Be a Top-Tier Petrochemical Company in SEA
VISION 2024 – “To Be a Top-Tier Petrochemical Company in SEA” Plant Operations Optimization Preventive Maintenance System Operational Efficiency Ive in a Safe Environment USD 6.0 Bil Business Competitiveness Value-accretive Projects Business Enhancement Surplus Ethylene Project Innovat
Slide 11: LOTTE Chemical Corporation (LCC), Korea – Vision 2030
LOTTE Chemical Corporation (LCC), Korea – Vision 2030 Currently, LCC is within the Top 20 chemical company in the world through continuous expansion and M&A Aiming for “Global Top 7 Chemical Company” by quantitative & qualitative growth strategy by year 2030 LCC owns 76% of LCT and LCC is comm
Slide 12: Business Overview
Business Overview 1. Strong Financial Resilience a) Net cash & Zero debt position b) Cash & Cash Equivalents in Q1 2020 : RM 4 Billion c) Positive Operating Cash Flow in Q1 2020 : RM 270 Million 2. Business Competitiveness a) Major statutory turnaround completed in Q1 2020 b) Enhance operational eff
Slide 13: Contents
CONTENTS 1. Business Performance & Market Outlook 2. Indonesia LINE Project Update 3. Growth Strategy & Vision 4. Sustainability • Process Safety Management • COVID-19 Pandemic: Our Commitment to Society • Anti-Bribery & Anti-Corruption Framework • Plastic Applications • Sustainable Plastics 12 / 17
Slide 14: Safety is our No.1 Priority
Safety is our No.1 Priority • LOTTE Group embarked a worldwide “ Global Top Sustainable Safety Culture” • One of LCT Strategy : ive in a Safe Environment • LCT implement a 3 years Plan to enhance the safety awareness in LCT and contractors using Behavioural Based Safety (BBS) program and the Process
Slide 15: COVID-19 Pandemic: Our Commitment to Society
COVID-19 Pandemic: Our Commitment to Society Basic Needs MEDICAL EQUIPMENT Items Items 1,000 set of Food Box 1,000 people of Covid-19 Test Kits 3 Unit of Mobile Ventilators Beneficiaries 1,000 Needy Families through Beneficiaries Yayasan Pasir Gudang Ministry of Health Hospital Kuala Lum
Slide 16: Anti-Bribery & Anti-Corruption Framework
Anti-Bribery & Anti-Corruption Framework NEW CORPORATE LIABILITY PROVISION INTRODUCED UNDER THE MALAYSIAN ANTI-CORRUPTION COMMISSION (AMENDMENT) ACT 2018 LCT has established & implemented Anti-Bribery & Anti-Corruption Framework before 1 June 2020 LCT’S ANTI-BRIBERY & ANTI-CORRUPTION FRAMEWORK Bus
Slide 17: What We Do, is Essential for the World
What We Do, is Essential for the World Produce raw materials for the plastic fabrication industry One of the essential input for the manufacturing supply chain Healthcare Industrial applications of our products sustain continuous economic Masks, Syringes, Diapers, development and global population g
Slide 18: Transition to a sustainable plastic…
Sustainable Plastic Transition to a sustainable plastic… “Plastic isn’t the problem. It’s what we do with it. Onus is on us to be smarter how we use this miracle material.” Erik Solheim, Head of UN Environment Waste reduction through circular ecosystem 17 / 17
Slide 19: Mission
MISSION ApBta} Alz]S wr _— i — 7 AZB2t MY|AS AlSotO} QFL| SQlS 4tOi] 7/04Stct We enrich people's lives by providing superior products and services that our customers love and trust © LOTTE CHEMICAL) TITAN
Lotte Chemical Titan Holdings — Shareholder Meeting (June 2020) on 6ix