Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2010 Earnings Presentation
15 slides from Lg Chem's earnings presentation, Jan 28, 2011
Slide 1: 4Q 2010 Business Results & Outlook
4Q 2010 Business Results & Outlook Jan 28, 2011
Slide 2: The business results for the fourth quarter of 2010 currently under audit review are
The business results for the fourth quarter of 2010 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 busine
Slide 3: Table of Contents
Table of Contents Yearly Business Results 1 2010 Quarterly Business Results 2 4Q 2010 Business Results 3 Divisional Results & Outlook 5 2011 Business Plan 7 Appendix 9
Slide 4: Yearly Business Results
Yearly Business Results (Unit: KRW) 19.5tn 2,830bn 15.5tn 14.1tn 2,098bn 12.1tn 10.7tn 1,374bn 1,043bn 501bn '06 '07 '08 '09 '10 OP Sales ※ The non-audited IFRS basis business results for 2006~2008 are presented here for investors’ convenience. 1 //12 12
Slide 5: Quarterly Business Results
Quarterly Business Results (Unit: KRW) 5.03tn 5.02tn 5.00tn 4.42tn 4.29tn 4.05tn 3.83tn 828bn 3.35tn 779bn 697bn 652bn 629bn 571bn 485bn 287bn '09.1Q 2Q 3Q 4Q '10.1Q 2Q 3Q 4Q 영업이익 매 출 2 //12 12
Slide 6: 4Q 2010 Business Results Income Statements
4Q 2010 Business Results Income Statements (Unit: KRW bn) Classification ’09.4Q ’10.3Q ’10.4Q YoY QoQ Sales 4,046 5,021 4,999 23.5% - 0.4% Operating Profits 287 779 571 98.9% - 26.6% (%) (7.1) (15.5) (11.4) Pre-tax Income 258 791 567 119.4% - 28.3% (%) (6.4) (15.7) (11.3) Net Income 223 599 444 99.1
Slide 7: 4Q 2010 Business Results Financial Position
4Q 2010 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’09 ’10 Change Classification ’09 ’10 Change Asset 10,531 12,673 20.3% Total Liabilities 77.7 61.4 - 16.3%p / Equity (%) Cash and 1,107 1,368 23.6% equivalent Debt / Equity (%) 40.7 26.8 - 1
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis 3,809 ▣ Achieved high profitability thanks to competitive product 3,768 mix and strong product price despite weak seasonality NCC/PO 27% -NCC/PO : Maintained stable margin due to robust 28% premium PO sal
Slide 9: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials Business results Analysis (Unit: KRW bn) • Analysis 1,271 ▣ Continued weak IT demand during the off-season and 1,200 year-end one-off expenses weakened profitability 1,157 -Optical : Continued inventory adjustments of customers Materials led weak demand a
Slide 10: 2011 Business Plan
2011 Business Plan Business Plan Business Strategy (Unit: KRW bn) Petrochemicals : Maximize capability of profit generation and grow with the strategic business Classification ’10 ’11 Plan • Strengthen cost leadership - By increasing energy efficiency and maximizing purchasing capability • Strateg
Slide 11: 2011 Business Plan: Cash Flow and CAPEX
2011 Business Plan Cash Flow CAPEX (Unit: KRW bn) Key Investments Class Amounts Class Amounts Cash Inflow 3,000 (Unit: KRW bn) Total 2,370 From Operating 2,260 ▣ Petrochemicals 770 New / Expansion 1,740 - Yeosu : Expansions of acrylate, Depreciation 740 Type SAP and CA/EDC - Daesan : Expansions of e
Slide 12: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit (Unit: KRW bn) 2009 2010 LGC 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 3,350 3,830 4,295 4,046 15,521 4,423 5,028 5,021 4,999 19,471 Operating Profit 485 629 697 287 2,098 652 828 779 571 2,830 Petrochemicals 2,582 2,847 3,062 2,959 11,450 3,309 3,765 3,768 3,809 14
Slide 13: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’09 ’10 Classification ’09 ’10 Total 2,411 2,101 Beginning 514 1,107 (Overseas Subsidiaries) (602) (824) 100% 100% Operating/Investing 1,515 851 266 162 KRW Currency Net Income 1,539 2,207 11% 8% C P 2
Slide 14: Appendix: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’08 ’09 ’10 Plan ’10 New / Expansion 223 158 289 324 Petrochemicals Maintenance 103 132 174 237 Total 326 290 463 560 New / Expansion 270 472 670 814 I&E Maintenance 58 81 125 135 Materials Total 328 553 795 948 New / Expansion 1 22 - - Com
Slide 15: Appendix: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,600 3,214 1,526 1,413 1,333 1,320 2,728 1,271 1,304 2,581 1,253 2,483 1,164 1,198 1,260 1,109 1,227 1,255 1,198 2,104 1,111 1,095 1,971 1,911 945 1,822 1,897 1,008 1,760 963 968 932 803 1,492 1,793 1,471 1,701 1,745 716 1,321 1,321 1,620 682 707 666