Lg Chem Ltd. · KRX:051910
Lg Chem — Korea Investment & Securities' Investors Forum 2009
19 slides from Lg Chem's conference presentation, April 2009
Slide 1: 2008 Business results & Outlook
2008 Business results & Outlook April 2009
Slide 2: Audit review and forward-looking notice
The business results for 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 environments and ma
Slide 3: Table of Contents
Table of Contents LG Chem at a Glance 1 Business Portfolio 2 Distinctive Vertical Integration 3 Business Results 4 Divisional Results & Outlook 8 Appendix 11
Slide 4: LG Chem at a Glance
LG Chem at a Glance • LG Chem was started in 1947 and is Korea’s first and Impressive Revenue Scale… largest blue chip chemical company with an 16,708 .3% established track of over 60 years and annual revenues GR : 17 15,000 CA 13,525 of KRW 16.7 trillion in 2008 11,432 10,785 10,000 8,817 KRW Billi
Slide 5: Business Portfolio
Business Portfolio Revenue Diversification by Business Product Diversification by Business Information & Electronic Acrylates/Plasticizers Rubber/ Materials 13% Specialty 12% Petrochemicals ABS/EP PVC Petrochemicals 29% 14% 19% NCC/PO 31% 81% Optical 73% I & E Materials Battery 27% • Industrial Mate
Slide 6: Distinctive Vertical Integration
Distinctive Vertical Integration Vertical Integration Structure Co-existence of upstream and downstream products Naphtha Annual usage: appx. 5 mil MT • One of few petrochemical companies around the globe with a vertical integration structure, featuring both upstream and NCC Ethylene (1,660 KMT/yr) d
Slide 7: Business Results Yearly
Business Results Yearly Consolidated Non-Consolidated (Unit:KRW bn) (Unit:KRW bn) 16.7tn 14.5tn 13.6tn 1,426 10.8tn 1,430 1,182 1,003 764 1,003 686 686 '07 '08 '07 '08 Sales OP Net income Sales OP Net income 4/16
Slide 8: Business Results Quarterly
Business Results Quarterly LGC + LGPC (Unit:KRW bn) 4.06tn 3.74tn 3.45tn 3.23tn 3.10tn 443 3.02tn 2.90tn 481 2.59tn 340 379 253 253 245 123 '071Q 2Q 3Q 4Q '081Q 2Q 3Q 4Q Sales OP 5/16
Slide 9: Business Results Income Statements
Business Results Income Statements Consolidated Non-Consolidated (Unit : KRW bn) ’07 4Q ’08 4Q ’08 3Q YoY ’07 4Q ’08 4Q ’08 3Q YoY Sales 3,535 3,727 4,581 5.4% 3,004 3,237 4,065 7.8% Operating Profit 263 45 452 221 123 443 -82.8% -44.6% (%) (7.4) (1.2) (9.9) (7.4) (3.8) (10.9) Recurring Profit 202 1
Slide 10: Business Results Balance Sheets
Business Results Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’07 ’08 ’07 ’08 Assets 8,551 9,730 7,050 8,036 (Cash and equivalents) 591 659 466 522 Liabilities 4,507 4,676 3,172 3,147 (Borrowings) 2,368 2,773 1,362 1,350 Shareholder’s Equity 4,044 5,055 3,878 4,890 Total Liabilities
Slide 11: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 3,380 ▣ Rapid oil price decline reflected into product prices ABS/EP immediately 27% 2,470 ▣ High-cost law material inventory worsened NCC/PO 2,381 profitability due to lagging effect. 28% 32
Slide 12: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 750 ▣ Electronics & opticals 670 654 Achieved solid sales/profit on the back of cost 36% competitiveness, despite of weak demand in the Battery 26% 23% front line industry ▣ Battery Big jump
Slide 13: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 619 619 ▣ Decrease in sales 551 - H S : Decrease in demand due to continuous depression and accelerated liquidity crisis Living 40% 41% Solutions/ of the construction industry Automotiv
Slide 14: 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 3,041 3,384 3,566 3,535 13,525 4,014 4,386 4,581 3,727 16,708 Operating Profit 258 292 374 263 1,187 401 527 452 45 1,426 Petrochemicals 2,038 2,300 2,396 2,381 9,114 2,835 3,131 3,380
Slide 15: 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 2,645 2,767 3,004 10,795 3,448 3,738 4,065 3,237 14,488 Operating Profit 127 163 253 221 764 379 481 443 123 1,430 Petrochemicals 1,498 1,647 1,743 1,906 6,794 2,397 2,607 2,9
Slide 16: 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 ’07 ’08 Changes 1,362 1,350 -12 1,315 Beginning 116 466 Total (100%) (100%) (100%) Operating/Investing 647 394 KRW 1,033 929 -104 1,000 Net Income 686 1,003 Currency (76%) (
Slide 17: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’06 Results ’07 Results ’08 Plan ’08 Results New/Expansion 118 142 156 217 Maintenance 84 68 95 85 Petrochemicals Equity Investment 39 16 3 - Total 241 227 253 302 New/Expansion 122 42 231 194 I&E Maintenance 38 36 45 51 Materials Equit
Slide 18: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,858 1,800 1,720 1,600 1718 2,109 1,496 1,681 1,632 1,961 1,322 1,364 2,032 1,477 1,462 1,733 1,700 1,973 1,377 1,688 1,305 1381 1,638 1,633 1,284 1,584 1,569 1,307 1,756 1,036 1,624 1,417 1,206 1016 1,027 1,635 1,151 1,203 975 1,096 1,050 873 1,186 1
Slide 19: Stock Information
Appendix Stock Information Shareholders & Market Cap GDR Info. LG Corp. Foreign Investors Listed in LSE 33.5% 22.3% 144A GDR Reg.S GDR Institutional & Individual Investors 44.2% ORD:GDR Ratio: 1:2 Exchange: PORTAL Ticker: LGCLY US Common Stock as of Mar 20, 2009 ISIN: US5019551085 (Unit : KRW) Mar 2
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