Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (November 2013)
16 slides from Lg Chem's roadshow presentation, Nov 4, 2013
Slide 1: Business & Market Outlook
Business & Market Outlook November, 2013
Slide 2: Disclaimer
Disclaimer The business results for the third quarter of 2013 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 IFRS(International Financial R
Slide 3: Table of Contents
Table of Contents LG Chem at Glance 1 3Q 2013 Business Results 3 Divisional Results & Outlook 5 Appendix 7 / 12
Slide 4: LG Chem at a Glance
LG Chem at a Glance ＊ Impressive Revenue Scale… • LG Chem was started in 1947 and is Korea’s first and largest chemical company with an established track of over 60 years and annual revenues of KRW 23.3 trillion in 2012. • LG Chem boasts multiple production facilities and an extensive distribution n
Slide 5: Differentiated Competitiveness
Differentiated Competitiveness Vertical Integration Structure Co-existence of upstream and downstream products Naphtha Annual usage: appx. 6.0 mil MT One of few petrochemical companies around the globe with vertical integration structure, featuring both upstream and NCC Ethylene (2.0 mil MT/yr) down
Slide 6: 3Q 2013 Business Results: Income Statements
3Q 2013 Business Results Income Statements (Unit: KRW bn) Classification ’12.3Q ’13.2Q ’13.3Q YoY QoQ Sales 5,834 5,917 5,865 0.5% -0.9% Operating Profit 601 502 516 -14.0% 3.0% (%) (10.3) (8.5) (8.8) Pre-tax Income 585 510 441 -24.6% -13.5% (%) (10.0) (8.6) (7.5) Net Income 459 401 352 -23.3% -12.1
Slide 7: 3Q 2013 Business Results: Financial Position
3Q 2013 Business Results Financial Position Financial Position Financial Ratios (Unit: KRW bn) Classification ’12 ’13.3Q Change Classification ’12 ’13.3Q Change Asset 16,581 17,598 6.1% Total Liabilities/ 54.0 52.1 -1.9%p Cash and Equity (%) equivalents 1,341 1,974 47.2% Borrowings / 27.4 27.0 -0.4%
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit: KRW bn) • Analysis ▣ Despite sluggish synthetic rubber, earnings improved thanks to 4,536 overall product price increases and solid PO market condition 4,366 4,426 -NCC/PO : Earnings improved with expanded PE spread NCC/PO
Slide 9: Divisional Results & Outlook: I&E Materials/Energy Solution
Divisional Results & Outlook I&E Materials/Energy Solution Business results Analysis (Unit: KRW bn) • Analysis ▣ Despite weak demand even in the peak season of display market, favorable results achieved thanks to high margin product sales and capacity additions of polymer battery - I&E : Recorded so
Slide 10: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2012 2013 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 5,753 5,996 5,834 5,681 23,263 5,721 5,917 5,865 17,503 Operating Profit 447 499 601 364 1,910 409 502 516 1,427 Petrochemicals 4,491 4,521 4,366 4,201 17,579 4,353 4,536 4,
Slide 11: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’12 ’13.3Q Classification ’12 ’13.3Q Total 2,947 3,129 Beginning Cash 1,379 1,341 (Overseas Subsidiaries) (1,024) (1,236) 100% 100% Operating/Investing -143 760 KRW Currency 812 804 28% 26% Net Income
Slide 12: CAPEX Plan & Results
Appendix CAPEX Plan & Results (Unit: KRW bn) Classification ’11 ’12 ’13 Plan ’13.3Q(YTD) New / Expansion 664 784 549 332 Petrochemicals Maintenance 296 226 245 169 Total 960 1,009 795 501 New / Expansion 332 242 744 185 I&E Maintenance 103 90 135 75 Materials Total 434 332 878 261 New / Expansion 66
Slide 13: Quarterly Price Trends
Appendix Appendix Quarterly 분기별 제품가격 Price Trends 추이 (Unit:U$/MT) (Unit:U$/MT) Acrylate/ Rubber/ NCC/PO PVC ABS/EP Plasticizer Specialty Polymers • The prices are average price of CFR FE Asia for general grade in each product group. 12 / 10 12
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit:U$/MT) (Unit:U$/MT) Acrylate/ Rubber/ NCC/PO PVC ABS/EP Plasticizer Specialty Polymers • The prices are average price of CFR FE Asia for general grade in each product group. 129 / 11 12
Slide 15: Global Position of Key Products
Appendix Global Position of Key Products As of 3rd quarter of 2013 Item Location Capa Global Rank Capa Additions(’13) ABS (Acrylonitrile-Butadiene-Styrene) Korea, China 1,390 KMT/Yr 1st* PVC (Polyvinyl Chloride) Korea, China 1,270 KMT/Yr 6th Oxo-Alcohol Korea (Yeosu, Naju) 299 KMT/Yr 10th AA (Acryli
Slide 16: Stock Information
Appendix Stock Information Shareholders & Market Cap Dividends (Unit: KRW bn) Classification ’11 ’12 Change LG Corp. Foreign Investors 33.5% 34.26% Net Income 2,170 1,510 -30.41% Institutional & Individual Investors 32.24% EPS(KRW) 29,360 20,384 -30.57% * Total Dividends 295 295* 0 Common Stock as o