Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2024 Earnings Presentation
25 slides from Lg Chem's earnings presentation, Feb 3, 2025
Slide 1: 4Q 2024 Earnings Release
Secret (Restricted Access) 2025. 2. 3 4Q 2024 Earnings Release
Slide 2: Contents
Secret (Restricted Access) Contents 2024 Results 4Q & Full-Year 2024 Business Results 3-5 Results & Outlook by Business 6-10 11 2024 Performance Review 2025 Business Strategy/ Outlook Key Activities for 2025 12 2025 Business Plan 13 Business Review & Strategy 14-16 Appendix 17-23 Income Statements /
Slide 3: Audit review and forward-looking notice
Secret (Restricted Access) The business results currently under audit review are presented here for investors’ convenience. Hence, please be advised that some of the contents may be altered in the course of audit. The financial information included in this material has been prepared on a consolidate
Slide 4: 4Q 2024 Business Results
Secret (Restricted Access) 4Q 2024 Business Results Sales & Profits Trends (consolidated) (Unit: KRW bn) 2023 2024 Sales trend by business LG Chem 4Q 1Q 2Q 3Q 4Q (Unit: KRW bn) Sales 13,135 11,609 12,300 12,670 12,337 13,135 12,670 12,300 12,337 150 11,609 113 Operating 238 165 247 265 406 498 -252
Slide 5: Full-Year 2024 Business Results
Secret (Restricted Access) Full-Year 2024 Business Results Sales & Profits Trends (consolidated) (Unit: KRW bn) Annual Sales Trend LG Chem 2023 2024 (Unit: KRW tn) Operating Profit 2,529 917 (%) 4.6% 1.9% 55.2 Petrochemicals -143 -136 0.8 -0.8% -0.7% 48.9 0.8 Advanced Materials 585 510 7.9% 8.0% 33.
Slide 6: Full-Year 2024 Business Results: Financial Position
Secret (Restricted Access) Full-Year 2024 Business Results Financial Position (consolidated) Balance Sheet Financial Ratios (Unit: KRW tn) (Unit: %) LG Chem 2023 2024 95.6% 89.2% Liabilities / Equity Asset 77.5 93.9 Cash and cash 9.1 8.1 57.0% equivalents 53.6% Debts / Equity 40.2% Liabilities 36.5
Slide 7: Results & Outlook by Business: Petrochemicals
Secret (Restricted Access) Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Petrochemicals (Unit: KRW bn) 4,966 Results 4,813 4,855 4,455 6% 8% 7% Chinese economic recovery remains 4,260 5% 3% 7% 4% sluggish, worsening spread of some 7% 8% 8%
Slide 8: Results & Outlook by Business: Advanced Materials
Secret (Restricted Access) Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Advanced Materials (Unit: KRW bn) Results 1,728 1,712 1,583 Decline in sales/profitability due to year- end inventory adjustments by battery 1,389 material customers
Slide 9: Results & Outlook by Business: Life Sciences
Secret (Restricted Access) Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Life Sciences (Unit: KRW bn) Results Sales of major products such as diabetes treatments, autoimmune disease treatments, and vaccines continue to increase, but a marg
Slide 10: Results & Outlook by Business: Farm Hannong
Secret (Restricted Access) Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Farm Hannong (Unit: KRW bn) Results Increased YoY sales and profitability by expanding domestic and overseas sales of crop protection products 246 238 Outlook 165 Sal
Slide 11: Results & Outlook by Business: Energy Solution
Secret (Restricted Access) Petrochemicals Advanced Materials Life Sciences Farm Hannong Energy Solution Results & Outlook by Business Energy Solution (Unit: KRW bn) Results Sales decreased due to year-end inventory adjustments by North American customers, delay in some ESS PJTs, and decline in metal
Slide 12: 2024 Performance Review
Secret (Restricted Access) 2024 Performance Review Business structure advancement through bold restructuring of low-growth/profit commodity products - Advanced materials - Sale of polarizer/films business, - Petrochemicals - Rationalization of small-scale non-core/ intermediate raw materials/ aging
Slide 13: Key Activities for 2025
Secret (Restricted Access) KeyActivities For 2025 Continued enhancement of business structure through proactive portfolio 'In/Out' strategies Strengthening structural competitiveness on a foundation of quality enhancement for the 3 future growth drivers. Accelerating the transition to performance-ba
Slide 14: 2025 Business Plan
Secret (Restricted Access) 2025 Business Plan Business Target (excl. Energy Solution) (Unit: tn KRW) 27.1 26.5 0.8 1.3 0.8 1.4 6.4 6.2 Sales 19.1 18.6 2024 2025(P) ※ The projected amount of the business target is based on our business plan, and may differ from the actual amount due to changes in the
Slide 15: Business Review/Outlook: Petrochemicals
Secret (Restricted Access) Business Review/Outlook Petrochemicals (Unit: KRW) 19.1tn 2024 Review 18.6tn Market conditions continued to deteriorate due to supply surplus in Northeast Asia and global economic slowdown Profitability of major products declined due to rising costs of crude oil, raw mater
Slide 16: Business Review/Outlook: Advanced Materials
Secret (Restricted Access) Business Review/Outlook Advanced Materials (Unit: KRW) 6.4tn 2024 Review 6.2tn Major growth in shipments of cathode materials, primarily to North American clients, was offset by a decline in metal prices, resulting in lower overall revenue Stable profitability maintained t
Slide 17: Business Review/Outlook: Life Sciences
Secret (Restricted Access) Business Review/Outlook Life Sciences (Unit: KRW) 2024 Review 1.4tn 1.3tn Enhanced market leadership of key products such as Zemiglo, Eutropin, and Eucept led to sustained stable revenue Revenue growth and improved profitability were achieved through out- licensing the wor
Slide 18: Appendix: Income Statements
Secret (Restricted Access) Appendix Income Statements (Unit: KRW bn) 2023 2024 LG Chem 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year Sales 14,284 14,336 13,495 13,135 55,250 11,609 12,300 12,670 12,337 48,916 Cost of Sales 11,972 11,930 11,177 11,384 46,464 9,706 10,424 10,383 10,868 41,380 Gross Profit 2,312 2
Slide 19: Appendix: Financial Position
Secret (Restricted Access) Appendix Financial Position (Unit: KRW bn) 2023 2024 구분 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Assets 70,896 72,501 77,500 77,467 82,116 84,188 88,795 93,858 Cash and Equivalents 6,810 6,871 8,883 9,142 9,294 7,170 8,834 8,068 A/R 8,604 8,657 8,924 8,083 8,152 8,857 8,659 8,166 Inventory
Slide 20: Appendix: Cash Flows
Secret (Restricted Access) Appendix Cash Flows (Unit: KRW bn) 2023 2024 LG Chem 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year Beginning 8,512 6,810 6,871 8,883 8,512 9,142 9,294 7,170 8,834 9,142 Cash Balance Operating 503 1,971 1,656 3,406 7,537 454 1,490 842 4,474 7,260 Activities Operating Profit 804 618 860
Slide 21: Appendix: CAPEX & R&D Expenses
Secret (Restricted Access) Appendix CAPEX & R&D Expenses (excl. Energy Solution) CAPEX R&D Expenses (Unit: KRW bn) (Unit: KRW bn) 2024 2024 LG Chem 2023 4Q 2024 LG Chem 2023 4Q 2024 (Cumulative) (Cumulative) Petrochemicals 1,464 349 1,007 Petrochemicals 232 59 239 Advanced Advanced 690 426 960 243 5
Slide 22: Appendix: Dividend Per Share (DPS) Trend
Secret (Restricted Access) Appendix Dividend Per Share (DPS) Trend (Unit: KRW / Common Share) Payout ratio (based on the consolidated net income) Dividend Per Share (DPS) 151.8% ~~ ~~ 49.0% 42.4% 33.9% 31.2% 28.7% 28.7% 23.7% 25.5% 20.5% 12,000 10,000 10,000 5,000 6,000 6,000 4,000 4,500 3,500 ※ 2,0
Slide 23: Appendix: Petrochemical Division Products & Capacity
Secret (Restricted Access) Appendix Petrochemical Division Products & Capacity as of 4Q 2024 (Unit : 1,000 tons) NCC/PO C2 / C3 / BD / BZ BPA HDPE / LLDPE / PP LDPE / EVA (3,350 / 1,980 / 510 / 900) (505) (550 / 600 / 380) (300 / 160) PVC/ PVC Plasticizers Alcohol PC Caustic Soda Plasticizer (1,120)
Slide 24: Appendix: Cathode Capacity Plan
Secret (Restricted Access) Appendix Cathode Capacity Plan (Unit : 1,000 tons) 170 10 United States 150 140 China 50 Korea 120 50 50 88 50 45 110 100 90 70 43 2022 2023 2024 2025(P) 2026(P) ※ This is based on our business plan, and may differ from the actual capacity due to changes in the business en
Slide 25: Thank you
Secret (Restricted Access) Thank you LG Twin Tower, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Korea Tel. 02-3773-1114 / www.lgchem.com Copyright ⓒ 2025 LG Chem. All Rights Reserved.