LG Chem Ltd. · KRX:051910
LG Chem — Q2 2003 Earnings Presentation
14 slides from LG Chem's earnings presentation, Jul 24, 2003
Slide 1: 2Q 2003 Results & Business Outlook
2Q 2003 Results & Business Outlook July 24, 2003
Slide 2: Table of Contents
Table of Contents 2Q03 Results 1 Business Results & Outlook 2 Business Environment for 2H03 6 Earnings Forecast for 2H03 (Revised) 7 Appendix 8 This material was prepared only for the convenience of our investors when the external audit of the second quarter of 2003 was not yet completed. Hence, its
Slide 3: 2Q03 Results
2Q03 Results Increased sales volume of petrochemical products and growth in the Information & Electronic Materials business have contributed to the rise in sales but weak demand stemming from domestic and global economic sluggishness has greatly decreased operating profit. Sales & Operating Profit A
Slide 4: Business Results & Outlook: Petrochemicals
Business Results & Outlook Petrochemicals Sales rose 15 % thanks to increased sales volume and our aggressive efforts to hike product prices. However, stagnated domestic and global demand overall led to decrease in operating profit. Business Results Results Analysis & Outlook (Unit: KRW billion) Sal
Slide 5: Business Results & Outlook: Performance Polymers
Business Results & Outlook Performance Polymers Sharp increases in major raw material costs and the sluggish domestic economy have significantly dented our profitability despite boosted sales volume. Business Results Results Analysis & Outlook (Unit: KRW billion) Sales Operating Profit • Results Ana
Slide 6: Business Results & Outlook: Industrial Materials
Business Results & Outlook Industrial Materials Sale rose moderately through an expansion of overseas exports despite a sluggish domestic housing and construction industry. Nevertheless, operating profits sank by 24 %YoY, largely driven by a depressed domestic economy and rising raw material costs.
Slide 7: Business Results & Outlook: Information & Electronic Materials
Business Results & Outlook Information & Electronic Materials Productivity improvement and a consolidated customer base in core business sectors such as batteries and polarizers led to remarkable growth of performance. Business Results Results Analysis & Outlook (Unit: KRW billion) Sales Operating P
Slide 8: Business Environment for 2H03
Business Environment for 2H03 Business Environment for 2H03 Economic Indicators The trend of domestic economic growth in 2003 • Anticipated gradual recovery of the global economy - Either slow recovery (U-shape) or continued recession (L-shape) - Resurging demand in Chinese markets in step with a re
Slide 9: Earnings Forecast for 2H03 (Revised)
Earnings Forecast for 2H03 (Revised) In 2H of 2003, performance is likely to be better than in 1H alongside a gradual domestic and global economic recovery. However, we have revised our annual sales at KRW 5,810 billion and operating profit at KRW 518 billion due to the weak record in the 2Q. Sales
Slide 10: B/S & Cash Flow
Appendix B/S & CASH FLOW (Unit: KRW billion, %) (Unit: KRW billion) B/S ’02.12 ’03.03 ’03.06 ’03.12(E) 2002 2003 1H 2003(E) Assets 3,846.1 4,095.7 4,378.9 4,459.4 CASH OUT 497.8 778.6 964.4 Accounts and notes receivable (net)1) 311.1 378.5 393.1 309.2 Inventories 332.0 380.9 346.9 332.0 Investment 3
Slide 11: Sales & Operating Profit (Divisional Breakdown)
Appendix Sales & Operating Profit (Divisional Breakdown) (Unit: KRW billion) Sales Operating Profit ’02 ’03 1Q ’03.2Q ’03 (E) ’02 ’03 1Q ’03 2Q ’03 (E) Petrochemicals 1,664.2 447.8 449.7 1,840.9 150.7 56.1 23.9 149.2 PVC/Plasticizer 1,128.7 300.3 308.8 102.2 42.0 15.2 Acrylate 276.2 81.2 79.2 31.0 8
Slide 12: Balance and estimation of borrowings
Appendix Balance and estimation of borrowings (Unit : billion, %) Balance Dec 31, 2003(E) Dec 31, 2002 June 30, 2003 Change Total 1,291.6 1,779.9 488.3 1,581.8 (%) (100) (100) (100) KRW Currency 1,090.5 1,334.7 244.2 1,160.9 (%) (84) (75) (73) C P - 107.0 107.0 156.9 C B 1,030.0 1,170.0 140.0 1,000.
Slide 13: CAPEX Plan and Result
Appendix CAPEX Plan and Result (Unit: KRW billion) ’02 Results ’03 1H Results ’03 Plan New/Expansion 7.8 0.9 3.0 Maintenance 32.9 11.2 22.3 Petrochemicals Equity Investment - 3.1 3.1 Total 40.7 15.2 28.4 New/Expansion 21.2 14.3 27.5 Performance Maintenance 21.7 8.6 17.1 Polymers Equity Investment 22
Slide 14: Raw materials & Product price
Appendix Raw materials & Product price Raw material price trend Product price trend* (Unit:U$/Ton) (Unit:U$/Ton) 1056 ABS 1,000 910 910 581 883 896 600 463 420 800 406 511 719 741 625 LDPE 387 Ethylene 650 400 367 383 379 612 392 598 PVC 386 Benzene 672 353 600 612 340 350 543 568 531 568 272 288 ED