LG Chem Ltd. · KRX:051910
LG Chem — Q1 2006 Earnings Presentation
13 slides from LG Chem's earnings presentation, Apr 18, 2006
Slide 1: 1Q 2006 Business Results & Outlook
1Q 2006 Business Results & Outlook April 18, 2006
Slide 2: The business results for the 1st quarter of 2006 currently under audit review are
The business results for the 1st quarter of 2006 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
Slide 3: Table of Contents
Table of Contents 1Q 2006 Business Results 1 Divisional Results & Outlook 3 Subsidiaries’ Results & Outlook 6 Appendix 7
Slide 4: 1Q 2006 Business Results: Income Statements
1Q 2006 Business Results Income Statements Non-Consolidated Consolidated (Unit:KRW bn) ’05 1Q ’06 1Q ’05 4Q QoQ ’05 1Q ’06 1Q ’05 4Q QoQ Sales 1,868.9 2,129.1 1,910.7 11.4 2,704.3 2,634.8 2,512.0 4.9 Operating Profit 141.4 65.8 102.6 270.8 140.5 152.7 △35.9 △8.0 (%) (7.6) (3.1) (5.4) (10.0) (5.3) (6
Slide 5: 1Q 2006 Business Results: Balance Sheets
1Q 2006 Business Results Balance Sheets Non-Consolidated Consolidated (Unit:KRW bn) ’05 ’06 1Q ’05 ’06 1Q Assets 5,593.4 5,688.7 7,291.3 7,324.7 (Cash and equivalents) 189.4 133.7 608.0 325.2 Liabilities 3,154.9 3,306.9 4,221.8 4,369.2 (Borrowings) 1,865.4 1,731.0 2,627.3 2,491.0 Shareholder’s Equit
Slide 6: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business Results Analysis & Outlook (Unit:KRW bn) • Analysis 1,364.8 - Strong raw material price Ethylene (CFR Taiwan) : $834 (4Q ’05) → $1,060 (1Q ’06) 1,160.7 18% Propylene (CFR Taiwan) : $924 (4Q ’05) → $969 (1Q ’06) 1,046.5 36% - PVC : Weak demand
Slide 7: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials Business Results Analysis & Outlook (Unit:KRW bn) • Analysis 537.7 - Seasonal weakness in Building & Decorative Materials 495.0 (Housing Solutions) divisions 476.0 · Window frame 17%↓ 44% (Q o Q) A ut omot i ves 44% · Flooring 5%↓ / L i vi n g 46% M
Slide 8: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials Business Results Analysis & Outlook (Unit:KRW bn) • Analysis - Seasonal demand weakness and customers’ inventory 392.4 Battery adjustment 361.2 34% - Operation of new production line Battery/ 30% Printed 282.1 Optical - Decline in ASP and depreciation of
Slide 9: Subsidiaries' Results & Outlook
Subsidiaries’ Results & Outlook Business Results Analysis & Outlook ’05 1Q ’06 1Q ’05 4Q (Unit:KRW bn) LG Petrochemical Sales 459.8 513.4 512.2 - BPA operation resulted in sales growth (YoY) LG Operating Commencement of BPA operation : May, 2005 69.4 42.2 31.0 Petro- Profit (15.1) (8.2) (6.1) - St
Slide 10: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit (Unit : KRW bn) 2005 2006 1Q 2Q 3Q 4Q Sum 1Q 2Q 3Q 4Q Sum Sales 1,868.9 1,795.7 1,849.8 1,910.7 7,425.1 2,129.1 2,129.1 Operating Profit 141.4 85.6 92.1 102.6 421.7 65.8 65.8 Petrochemicals 1,160.7 1,050.5 1,069.5 1,046.5 4,327.2 1,364.8 1,364.8 PVC/Plasticizer 382.
Slide 11: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’06 (P) ’05 ’06 1Q ’05 ’06 1Q Changes 1,865.4 1,731.0 △134.4 1,766.0 Total Net Income 400.3 66.8 (100%) (100%) (100%) KRW 1,529.8 1,345.5 △184.3 1,359.8 Depreciation 344.5 125.9 Currency (82%) (78%) (77%) C
Slide 12: Appendix: Capex Plan & Results
Appendix Capex Plan & Results (Unit : KRW bn) ’04 Results ’05 Results ’06 Plan ’06 1Q New/Expansion 11.8 23.7 127.4 5.9 Maintenance 52.7 69.1 81.3 15.8 Petrochemicals Equity Investment 6.6 41.2 28.5 - Total 71.1 134.0 237.2 21.7 New/Expansion 4.9 17.1 42.8 0.7 Industrial Maintenance 42.7 49.1 44.8 1
Slide 13: Appendix: Price Trend
Appendix Price Trend Vinyls Styrenics (Unit:U$/MT) (Unit:U$/MT) 1,497 1,469 1,099 1,067 1,412 1,437 1,060 1,043 1,364 1,364 1,384 1,330 945 970 1,237 898 1,185 841 887 1,123 1,115 841 818 1,084 1,075 760 786 1,023 1,041 834 984 987 740 732 723 775 933 775 786 740 902 790 850 755 818 809 600 607 607