Lg Chem Ltd. · KRX:051910
Lg Chem — Non-Deal Roadshow (September 2009)
17 slides from Lg Chem's roadshow presentation, September 2009
Slide 1: Market Outlook
SolutionPartner Market Outlook Sept. 2009 @ LG Chem
Slide 2: Table of Contents
Table of Contents LG Chem at a Glance 1 Mid to Long-term Business Strategy 2 Differentiated Competitiveness 3 Business Results 4 Divisional Results & Outlook 7 Appendix 9
Slide 3: 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 chemical company with an established track of over 60 years and annual revenues of KRW 14.6 trillion in 2008 : 1 8 .9 % 14,555 15,000 R CAG • LG Chem boasts multiple production facilities and
Slide 4: Mid to Long-term Business Strategy
Mid to Long-term Business Strategy Business Portfolio Strategy Petrochemicals Information & Electronic Materials Business Strategy Optimizing the businesses 74% 26% Petro- Focusing on value-added ’09 chemicals downstream products Securing long-term competitiveness of China businesses Investing overs
Slide 5: Differentiated Competitiveness
Differentiated Competitiveness Distinctive Vertical Integration Vertical Integration Structure Co-existence of upstream and downstream products • One of few petrochemical companies around the globe Naphtha Annual usage: appx. 5 mil MT with a vertical integration structure, featuring both upstream an
Slide 6: Business Results: Income Statements
Business Results Income Statements Consolidated Non-consolidated (Unit:KRW bn) (Unit:KRW bn) 3.92tn 3.75tn 3.40tn 3.40tn 3.24tn 2.93tn 660 563 484 487 445 417 467 467 356 356 289 289 '08.2Q '09.1Q '09.2Q '08.2Q '09.1Q '09.2Q Sale s OP NI Sale s OP NI 4/15
Slide 7: Business Results: Operating Profit Trend
Business Results Operating Profit Trend (consolidated) LG Chem has achieved high profit growth every year based on diversified business portfolio. LG Chem will pursue sustainable growth with profitability in the future. (Unit:KRW bn) 700 660 600 487 500 484 416 400 354 362 300 240 212 251 193 250 20
Slide 8: Business Results: Financial Structure
Business Results Financial Structure Leverage Ratio Analysis (%) 150 Continuous improvement of financial profiles 120 133 driven by robust business performance. 90 111 93 88 60 74 59 54 30 45 Top level credit rating among global peer group 0 and local companies. '06 ' 07 '08 '09.2Q Liabilities/Equit
Slide 9: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 3,131 ▣ Strong demand across the products thanks to China’s 2,884 aggressive economic stimulus packages ABS/EP 31% 2,587 31% ▣ Delay in new supplies from Middle East tightened NCC/PO PO suppl
Slide 10: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 1,015 ▣ Electronics & opticals - LCD polarizer sales went up due to ‘home appliances subsidy program’ in China and HD broadcasting in US 30% - Continuous performance improvement in photo- 78
Slide 11: Sales & Operating Profit (Consolidated)
Appendix Sales & Operating Profit(Consolidated) (Unit: KRW bn) 2008 2009 LGC 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sale s 3,494 3,749 3,980 3,332 14,555 3,400 3,921 7,321 Ope rating Profit 362 484 416 59 1,321 487 660 1,148 Petroche micals 2,835 3,131 3,380 2,470 11,816 2,587 2,884 5,471 NCC/PO 884 97
Slide 12: Sales & Operating Profit (Non-Consolidated)
Appendix Sales & Operating Profit(Non-Consolidated) (Unit: KRW bn) 2008 2009 LGC 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 2,994 3,239 3,597 2,816 12,645 2,932 3,402 6,334 Operating Profit 340 445 412 147 1,344 417 563 980 Petrochemicals 2,397 2,607 2,961 2,075 10,039 2,152 2,388 4,540 NCC/PO 884 98
Slide 13: Balance Sheets
Appendix Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’08 ’09.4.1* ’09.2Q ’08 ’09.4.1* ’09.2Q Assets 9,736 9,110 9,326 8,036 7,502 7,678 (Cash and equivalents) 514 905 839 373 755 640 Liabilities 4,683 4,611 4,373 3,147 3,172 2,899 (Borrowings) 2,743 2,565 2,237 1,350 1,327 1,095 Sha
Slide 14: Borrowings & Cash Flow (Non-consolidated)
Appendix Borrowings & Cash Flow(Non-consolidated) Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’08 ’09.2Q ’09 Plan Beginning 466 373 ’08 ’09.4.1 ’09.2Q Operating/Investing 246 753 1,350 1,327 1,095 914 Total Net Income 1,003 756 (100%) (100%) (100%) (100%) Depreciation 402 190 KRW 92
Slide 15: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’07 ’08 ’09 Plan ’09.2Q New/Expansion 142 217 104 72 Maintenance 68 85 136 48 Petrochemicals Equity Investment 16 23 3 Total 227 302 263 123 New/Expansion 42 194 347 183 I&E Maintenance 36 51 91 29 Materials Equity Investment 12 21 28 1
Slide 16: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,858 1,800 1,720 1,600 1,718 2,109 1,496 1,681 1,632 1,961 1,364 1,462 2,032 1,284 1,477 1,688 1,733 1,700 1,973 1,322 1,305 1,377 1381 1,262 1,638 1,198 1,584 1,307 1,280 1,756 1,624 1,417 1,206 1,203 1,036 1016 1,027 1042 1,633 1,635 1,377 1,408 1,1
Slide 17: Stock Information
Appendix Stock Information Shareholders Stock Information (Unit : KRW) Aug 12, ’09 LG Corp. Foreign Investors No. of 33.5% 25.6% Shares Market Price Cap Institutional & Individual Common 66,271,100 171,000 11.3 tn Investors 40.9% Preferred 7,628,921 59,700 0.4 tn Total 73,900,021 11.7 tn Common Stoc