Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2023 Earnings Presentation
23 slides from Lg Chem's earnings presentation, Jan 31, 2024
Slide 1: 4Q 2023 Earnings Release
2024. 01.31 4Q 2023 Earnings Release @LG Chem | WeConnectScience
Slide 2: Contents
Contents 4Q & Full-Year 2023 Business Results ;-; Results & Outlook by Business 6-10 2024 Business Plan n Business Review & Strategy 12-14 Appendix 15-21 * Income Statements / Financial Position / Cash Flows + CAPEX & R&D Expenses / DPS Trend * Petrochemical Divisions & Products / Cathode Capa Plan
Slide 3: Confidential
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 a
Slide 4: 4Q & Full-Year 2023 Business Results
Confidential 4Q 1Q 2Q 3Q 4Q 265 247 135 120 150 8,747 8,774 8,538 8,224 8,001 278 317 245 291 2,360 2,015 297 1,686 1,714 1,319 4,279 4,579 4,559 4,411 4,260
Slide 5: 4Q & Full-Year 2023 Business Results
Confidential 0.8 0.8 0.7 25.6 33.7 17.9 0.9 0.8 7.1 1.2 4.0 7.4 20.8 21.7 17.8
Slide 6: Liabilities / Equity, Debts / Equity
Confidential 120.3% Liabilities / Equity 89.2% 81.4% 63.6% Debts / Equity 53.6% 47.1% Net Debts / Equity 42.6% 31.2% 19.9% 2021 2022 2023
Slide 7: Results & Outlook by Business: Petrochemicals
@ Petrochemicals Advanced Materials WeConnectScience Life Sciences Farm Hannong Energy Solution Results & Outlook by Business 4,579 4,559 4,279 4,411 '22.4Q '23.1Q '23.2Q '23.3Q -166 51 -13 37 (-3.9%) (1.1%) (0.3%) (0.8%) (Unit: KRW bn) Sales (Proportion) = Nexolution @ Sustainability mHPM @Acrylate
Slide 8: Results & Outlook by Business: Advanced Materials
WeConnectScience @ Advanced Materials Results & Outlook by Business Advanced Materials (Unit: KRW bn) 2,360 al Results 2,015 Battery material sales & profitability declined due to sluggish demand for EVs in 1.686 1,714 Europe & continued decline in metal prices > ‘ Engineering/IT materials maintaine
Slide 9: Results & Outlook by Business: Life Sciences
WeConnectScience Petrochemicals Advanced Materials: @ Life Sciences Farm Hannong Energy Solution Results & Outlook by Business (Unit: KRW bn) eeoeeeeee ~ al Results » Continued increase in sales of key products such as growth hormones, diabetes treatments, vaccines, etc. » Profitability slightly dec
Slide 10: Results & Outlook by Business: Farm Hannong
WeConnectScience @ Farm Hannong Results & Outlook rene (Unit: KRW bn) él Results Sales & profitability increased YoY through efforts to improve profitability, e.g., expanding overseas sales of crop protection products & raising ASP i 247 Gof Outlook Profitability to improve through transition to hig
Slide 11: Results & Outlook by Business: Energy Solution
WeConnectScience Petrochemicals Advanced Materials Life Sciences’ Farm Hannong @ Energy Solution Results & Outlook by Business (Unit: KRW bn) al Results Despite increased sales of key products, sales decreased QoQ due to ASP impact from metal price decline & customers’ conservative year-end inventor
Slide 12: 2024 Business Plan
Confidential 0.8 1.3 0.8 7.5 1.2 7.4 18.8 17.8 ※ The projected amount of the business target is based on our business plan, and may differ from the actual amount due to changes in the business environment and strategy revision. The difference between the company's sales target and the sum of sales t
Slide 13: 2024 Sales Target
Confidential 18.8tn 17.8tn 2023 2024(p) ※ The projected amount of the business target is based on our business plan, and may differ from the actual amount due to changes in the business environment and strategy revision.
Slide 14: 2024 Business Target
Confidential 7.5tn 7.4tn 2023 2024(p) ※ The projected amount of the business target is based on our business plan, and may differ from the actual amount due to changes in the business environment and strategy revision.
Slide 15: 2024 Business Target
Confidential 1.3tn 1.2tn 2023 2024(p) ※ The projected amount of the business target is based on our business plan, and may differ from the actual amount due to changes in the business environment and strategy revision.
Slide 16: Income Statements
WeConnectScience Appendix Income Statements (Unit: KRW bn) Sales 11,355 11,987 13,985 13,656 50,983 14,284 14,336 13,495 13,135 55,250 Cost of Sales 8,904 9,511 11,235 11,472 41,122 11,972 11,930 11,177 11,384 46,464 Gross Profit 2,451 2,477 2,749 2,184 9,861 2,312 2,405 2,318 1,750 8,786 (%) 21.6%
Slide 17: Financial Position
WeConnectScience Appendix Financial Position (Unit: KRW bn) Assets 64,417 66,347 69,649 67,974 70,896 72,501 77,500 77,467 Cash and Equivalents 14,138 11,514 9,128 8,512 6,810 6,871 8,883 9,142 AR 7,019 7,515 8,957 7,450 8,604 8,657 8,924 8,083 Inventory 9,312 41,240 12,493 11,881 11,970 11,145 10,6
Slide 18: Cash Flows
WeConnectScience Appendix § (eznugtre (Unit; KRW bn) Beginning 3,825 14,138 11,514 9,128 3,825 8,512 6,810 6,871 8,883 8,512 Cash Balance Cherating 156 587 -1,100 2,101 570 503 1,971 1,656 3,406 7,537 Activities Operating Profit 1,004 855 911 209 2,979 804 618 860 247 2,529 Depreciation 793 819 871
Slide 19: CAPEX & R&D Expenses
Appendix WeConnectScience CAPEX & R&D Expenses (excl. Energy Solution) CAPEX R&D Expenses LG Chem (Unit: KRW bn) 2022 LG Chem (Unit: KRW bn) 2022 Petrochemicals Petrochemicals pavanced 840 1,089 pavanced 154 204 Materials Materials Life Sciences 110 118 Life Sciences 200 276 eommen 593 679 (Gailitel
Slide 20: DPS Trend and Payout Ratio
Confidential Payout ratio (based on the consolidated net income) Dividend Per Share (DPS) 151.8% ~~ ~~ 49.0% 42.4% 33.9% 25.5% 28.7% 28.7% 31.2% 23.3% 23.7% 20.5% 12,000 10,000 10,000 5,000 6,000 6,000 4,000 4,000 4,500 3,500 2,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ※ Dividend Po
Slide 21: Petrochemical Divisions & Products
Confidential NCC/PO C2 / C3 / BD / BZ / SM BPA HDPE / LLDPE / PP LDPE / EVA (3,350 / 1,980 / 510 / 900 / 520) (505) (550 / 600 / 380) (300 / 160) PVC/ PVC Plasticizers Alcohol PC Caustic Soda Plasticizer (1,280) (280) (300) (170) (1,020) ABS ABS / SAN ’24.3Q PS / EPS (2,290) (2,310 2,350) (40 / 90)
Slide 22: Cathode Capa Plan
Confidential 50 60 60 10 10 60 300 50 50 200 45 70 90 43 2022 2023 2024(p) 2026(p) 2028(p) ※ It is based on our business plan, and may differ from the actual Capa due to changes in the business environment and strategy revision.
Slide 23: Thank you
Thank you WeConnectScience @LG Chem LG Twin Tower, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Korea Tel. 02-3773-1114 / wwwigchem.com Copyright © 2024 LG Chem, All Rights Reserved