Lg Chem Ltd. · KRX:051910
Lg Chem — Q2 2008 Earnings Presentation
15 slides from Lg Chem's earnings presentation, Jul 16, 2008
Slide 1: 2Q 2008 Business Results & Outlook
2Q 2008 Business Results & Outlook 2008. 7. 16
Slide 2: Audit review and forward-looking notice
The business results for the 2nd 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 Quarterly Business Results 1 2Q 2008 Business Results 3 Divisional Results & Outlook 5 Appendix 8
Slide 4: Quarterly Business Results
Quarterly Business Results Consolidated Non-Consolidated (Unit:KRW bn) (Unit:KRW bn) 4.01tn 4.39tn 3.74tn 3.45tn 3.38tn 527.1 481.4 401.2 2.64tn 378.8 292.0 162.9 '07 2Q '08 1Q '08 2Q '07 2Q '08 1Q '08 2Q Sales OP Sales OP 1 /12
Slide 5: Quarterly Business Results
Quarterly Business Results LGC + LGPC (Unit:KRW bn) 3.74tn 3.45tn 3.02tn 3.10tn 2.90tn 481.4 2.59tn 378.8 340.0 253.4 252.9 244.8 '071Q 2Q 3Q 4Q '081Q 2Q S a l e s O P 2 /12
Slide 6: 2Q 2008 Business Results Income Statements
2Q 2008 Business Results Income Statements Consolidated Non-Consolidated (Unit : KRW bn) ’07 2Q ’08 2Q ’08 1Q YoY ’07 2Q ’08 2Q ’08 1Q YoY Sales 3,383.6 4,385.9 4,014.0 29.6% 2,644.9 3,738.0 3,448.1 41.3% Operating Profit 292.0 527.1 401.2 162.9 481.4 378.8 80.5% 195.5% (%) (8.6) (12.0) (10.0) (6.2)
Slide 7: 2Q 2008 Business Results Balance Sheets
2Q 2008 Business Results Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’07 ’08.2Q ’07 ’08.2Q Assets 8,550.8 9,352.1 7,050.0 7,613.0 (Cash and equivalents) 590.5 370.5 466.4 245.9 Liabilities 4,506.8 4,793.8 3,171.8 3,214.3 (Borrowings) 2,367.9 2,437.4 1,361.6 1,215.7 Shareholder’s 4,0
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 3,131.1 ▣ PO : Pass through of Naphtha hikes to ASP thanks to tight supply ABS/EP 2,835.3 31% 2,299.5 32% ▣ ABS/PVC : Rapid margin improvement backed by upturn cycle NCC/PO 35% Acrylate/ 31%
Slide 9: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) 654.1 • Analysis 619.5 ▣ Electronic & optical 530.4 22% - Increased sales & margin in polarizer due to strong demand 26% of LCD Battery - Weak Korean won brought in additional profit improvement 29% ▣
Slide 10: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials(Consolidated) Business results Analysis (Unit:KRW bn) 662.3 • Analysis 615.8 ▣ Sales increase 568.7 - Domestic : Solid performance backed by peak seasonal demand Living 44% - Overseas : Window frames and Hi-Macs sales increased Solutions/ 43% 44% Aut
Slide 11: 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 4,385.9 8,399.9 Operating Profit 258.1 292.0 374.1 263.0 1,187.2 401.2 527.1 928.3 Petrochemicals 2,037.5 2,299.5 2,396.2 2,380.5 9,113.
Slide 12: 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 3,738.0 7,186.0 Operating Profit 127.0 162.9 252.5 221.2 763.6 378.8 481.4 860.2 Petrochemicals 1,498.3 1,647.3 1,742.8 1,905.5 6,79
Slide 13: Borrowings & Cash Flow (Non-consolidated)
Appendix Borrowings & Cash Flow(Non-consolidated) Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’08 (P) ’07 ’08.2Q ’07 ’08.2Q Changes 1,361.6 1.215.7 -145.9 1,315.2 Beginning 115.8 466.4 Total (100%) (100%) (100%) Operating/Investing 647.2 214.5 KRW 1,033.2 923.6 -109.6 1,000.2 (76%)
Slide 14: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’06 Results ’07 Results ’08 Plan ’08 2Q Results New/Expansion 118.2 142.2 155.6 98.3 Maintenance 83.6 68.2 94.8 40.3 Petrochemicals Equity Investment 39.0 16.4 3.0 - Total 240.8 226.7 253.4 138.7 New/Expansion 121.9 41.9 231.4 70.0 I&E
Slide 15: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,800 1,720 1,961 1,756 1,600 1,973 1,733 1,496 1,681 1,688 1,632 1,586 1,586 1,569 1,638 1,364 1,296 1,322 1,364 1,477 1,480 1,633 1,635 1,624 1,700 1,462 1,384 1,584 1,199 1,371 1,377 1,468 1,111 1,331 1,294 1,305 1,307 1,456 1,213 1,284 1,186 1,119