Lg Chem Ltd. · KRX:051910
Lg Chem — Q3 2017 Earnings Presentation
14 slides from Lg Chem's earnings presentation, December 2017
Slide 1: 3Q 2017 Business Results & Outlook
3Q 2017 Business Results & Outlook December, 2017
Slide 2: Disclaimer
Disclaimer The business results for the third quarter of 2017 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 K-IFRS(Korea International Fin
Slide 3: Table of Contents
Table of Contents 3Q 2017 Business Results 1 Divisional Results & Outlook 3 Appendix 6 - Divisional Sales & Operating Profit - Borrowings & Cash Flow - CAPEX / R&D Expenses - Ethylene/PE Demand & Supply - Quarterly Price Trends - Monthly Price Trends / 12
Slide 4: 3Q 2017 Business Results: Income Statements
3Q 2017 Business Results Income Statements (Unit: KRW bn) Classification 3Q ’16 2Q ’17 3Q ’17 YoY QoQ Sales 5,054 6,382 6,397 26.6% 0.2% Operating Profit 460 727 790 71.7% 8.6% (%) (9.1) (11.4) (12.3) EBITDA 797 1,074 1,137 42.7% 5.8% (%) (15.8) (16.8) (17.8) Pre-tax Income 379 730 703 85.6% -3.7% (
Slide 5: 3Q 2017 Business Results: Financial Status
3Q 2017 Business Results Financial Status Financial Position Financial Ratios (Unit: KRW bn) Classification ’16 3Q ’17 Change ’16 3Q ’17 (End) (End) Classification Change (End) (End) Asset 20,487 23,708 15.7% Borrowings / 20.6 20.3 -0.3%p Equity (%) Cash and 2,207 2,400 8.7% equivalents Net borrowin
Slide 6: Divisional Basic Materials & Chemicals
Divisional Results & Outlook Basic Materials & Chemicals Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • High performance was achieved on the back of the widening spread of upstream and improvement in PVC/ABS 4,319 4,316 30% -NCC/PO : Strong margin continued on the b
Slide 7: Divisional I&E Materials/Energy Solutions
Divisional Results & Outlook I&E Materials/Energy Solutions Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Energy : Quarterly sales recorded historical high and profit increased Solutions on the back of the improvement of business structure and sales growth of premi
Slide 8: Divisional Life Sciences/Farm Hannong
Divisional Results & Outlook Life Sciences/Farm Hannong Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Life : Despite a slight decline in the profitability due to increase Sciences in R&D expenses, sales growth of major products including ‘YVOIRE’, ‘Zemiglo’ resulte
Slide 9: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2016 2017 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 4,874 5,219 5,054 5,512 20,659 6,487 6,382 6,397 19,266 Operating Profit 458 612 460 462 1,992 797 727 790 2,313 (%) 9.4% 11.7% 9.1% 8.4% 9.6% 12.3% 11.4% 12.3% 12.0% EBITDA
Slide 10: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) Classification ’16 3Q ’17 ’16 3Q ’17 (End) (End) Classification (Acc.) (Acc.) Total 2,891 3,276 (Overseas Subsidiaries) Beginning Cash 2,694 2,207 (1,892) (1,861) 100% 100% Operating/Investing 524 792 KRW Currency 52
Slide 11: CAPEX & R&D expenses
Appendix CAPEX & R&D expenses CAPEX R&D expenses (Unit: KRW bn) (Unit: KRW bn) Classification ’15 ’16 3Q ’17 Classification ’15 ’16 3Q ’17 (Acc.) (Acc.) (Acc.) (Acc.) (Acc.) (Acc.) Basic New / Expansion 328 103 133 Basic Materials 132 150 123 Materials & Maintenance 385 289 201 & Chemicals Chemicals
Slide 12: Ethylene/PE Demand & Supply
Appendix Ethylene/PE Demand & Supply Ethylene Polyethylene (Unit : Million Tons) (Unit : Million Tons) 200 100% 150 140% 150 90% 100 120% 100 80% 100% 50 50 70% 80% * 0 60% 0 60% '15 '16 '17(e) '18(e) '19(e) '20(e) '15 '16 '17(e) '18(e) '19(e) '20(e) Demand (Global) Supply (Global) Demand/Supply (Gl
Slide 13: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,273 1,285 1,935 1,942 1,157 1,196 1,898 1,896 1,172 1,221 1,180 1,124 1,139 1,165 1,100 1,170 1,677 1,141 1,148 1,656 1,095 1,129 1,090 1,099 1,133 1,066 1,673 1,028 1,473 1,562 1,432 936 926 1,385 1,336 861 1,301 1,327 84
Slide 14: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 3,233 3,038 3,038 2,940 1,305 1,284 1,316 1,323 1,321 1,280 1,300 1,230 1,310 1,230 1,235 1,205 1,223 1,235 1,238 1,245 2,663 1,140 1,155 1,149 1,145 1,194 1,187 1,147 1,128 1,176 1,173 1,188 1,155 1,166 1,153 1,139 1,133 1,170 1,124 1,11