introduction to lg international(revenue for 2017 in krw trillion) chemicals lg household &...
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Introduction to LG International
LG is a leading business group in Korea which was founded in 1947.
Its major affiliates are LG Electronics, LG Chemical, LG Display and
LG International.
These affiliates have global top tier competitiveness in LCD / OLED
televisions, home appliances, smart phones, rechargeable batteries
and mobile telecommunication services.
Currently, LG is fostering natural resources development and industrial infrastructure business proactively.
About LG
MARKET-LEADING LG
REVENUE NETWORKS EMPLOYEES
130 billion USD 409 operations 222,000 employed
60 countries
About LG
KEY AFFILIATES
LG CNS
(Revenue for 2017 in KRW trillion)
Chemicals
LG Household & Health Care
LG Hausys
26 Chemicals, Batteries
6 3
Communications & Services
LG U
13 Resources,
Infra & Industrial
12 3
LG Innotek
Electronics
LG Display
61 TV, Smart Phones, Home Appliances
28 8
* Since its inception in 2003 as a holding company. LG has gone on to broaden its portfolio in Electronics, Chemicals, Communications & Services while strengthening its expertise in each field and working to create customer values along the way
+
About LG Way
Vision
Code of Conduct
Management Principles
- NO.1 LG
- “Jeong-Do” Management ㆍTruthfulness ㆍJustice ㆍFair Competition Based on Capacity
- Creation Value for Customers - Reception Human Dignity
* “Jeong-Do” Management means more than ethical management. It embodies the unique LG values that emphasize constantly cultivation capabilities so that we can fairly compete and win in the market.
LG International
Since its foundation in 1953, LGI’s earnings came mainly from trading
of products and services.
In the mid 2000s, the company strategically reformed its business
models by entering into natural resources development and industrial
infrastructure business in emerging countries with growth potential.
We are securing sustainable growth by systematical linkage and
interaction among natural resource development and industrial infrastructure business.
About us
BUSINESS STRUCTURE
RESOURCES INFRA & INDUSTRIAL
Coal Oil & Gas
Food & Commodities
Coal
IT
Petrochemicals Others
TRADING
Industrial Infrastructure
Plant EPC
Metals
Automotive
RESOURCES BUSINESS
COAL
OIL & GAS
METALS
FOOD & COMMODITIES
PT.GAM Coal Mine, Indonesia PT.PAM Palm Plantation, Indonesia
GeoPark Block Fell, Chile
“TO BECOME A MAJOR COAL PRODUCER & TRADER IN ASIA BY DOWNSTREAM EXPANSION”
Based on our successful mining operations in Indonesia and China, we will expand coal mine investment while investing in the downstream such as coal power plants, coal terminal, etc.
WHAT WE DO
COAL MINES – INVEST / DEVELOP / OPERATE - Targeted regions : Indonesia, China, Australia, etc.
■
COAL TRADING - Origins : Indonesia, Australia, Russia, China, etc. - Markets : Korea, China, Japan, India, Southeast Asia
■
COAL OIL & GAS METALS FOOD & COMMODITIES
RESOURCES BUSINESS
PT.MPP Coal Mine, Indonesia
TRADING VOLUME (2016~2020)
(Unit: million tons)
(Unit: million tons)
COUNTRY ANNUAL
PRODUCTION MINABLE RESERVES
SHARE RATIO PHASE COMMENCEMENT
Wantugou
PT.GAM
Total
Australia
Indonesia
China
Indonesia
PT.MPP
Ensham
-
5
2
4
6
17
150
9
131
210
500
15%
75%
30%
60%
-
Production
Production
Production
-
1983
2007
2008
2012
-
2016 2017
2018 (E)
2019 (E)
2020 (E)
9 11
14 16
18
Production
PT.GAM Coal Mine, Indonesia
RESOURCES BUSINESS
ASSET
KEY ASSETS
COAL OIL & GAS METALS FOOD & COMMODITIES
“SEEKING FOR INVESTMENT OPPORTUNITIES IN TARGETED REGIONS BASED ON TECHNICAL CAPABILITIES”
Stretching further into targeted regions through strategic partnership with companies having regional expertise
OIL & GAS FIELDS – INVEST / DEVELOP - Targeted regions : The Americas, Middle East, Southeast Asia
■
BUILD UP OPERATIONAL CAPABILITY ■
- Focused on oil & gas field in development / production stage
GeoPark Block Llanos 34, Colombia
RESOURCES BUSINESS
COAL OIL & GAS METALS FOOD & COMMODITIES
WHAT WE DO
COAL OIL & GAS METALS FOOD & COMMODITIES
COUNTRY STATUS
Oman
Vietnam
Chile
Colombia
Kazakhstan
Qatar
P
P
P/E (6 Blocks)
P (5 Blocks)
P
P
KEY ASSETS
P : Production
E : Exploration
Block 11-2 Gas Field, Vietnam
Block 8
Block 11-2
GeoPark Colombia
ADA
LNG Project
GeoPark Chile
RESOURCES BUSINESS
ASSET
ADA
Block 8 LNG Project
Block 11-2
GeoPark Colombia (5 Blocks)
GeoPark Chile (6 Blocks)
“PROVIDING CUSTOMIZED SERVICE BY INVESTING IN STEEL PROCESSING CENTERS AND NON-FERROUS METAL MINES”
Concentrating on marketing activity to end users with high value-added products. At the same time, we are operating steel processing centers to provide better service for customers
STEEL PROCESSING CENTER OPERATION ■
- Location : China (Tianjin, Guangzhou), Vietnam, India, Poland and Thailand
Tianjin Steel Processing Center, China
NON-FERROUS METAL INVESTMENT ■
RESOURCES BUSINESS
COAL OIL & GAS METALS FOOD & COMMODITIES
WHAT WE DO
Tianjin Steel Flower
Guangzhou Steel Flower
Haiphong Steel Flower
POSCO-PWPC
POSCO-IPPC Thai Dongbu Steel
Steel Processing Center
Guangzhou Steel Processing Center, China
COUNTRY PRODUCTION CAPA
China
China
Vietnam
India
Poland
Thailand
120 KMT
60 KMT
60 KMT
450 KMT
100 KMT
60 KMT
KEY ASSETS
Tianjin Steel Flower
Guangzhou Steel Flower
POSCO-IPPC
POSCO-PWPC
Thai Dongbu Steel
Haiphong Steel Flower
Rosemont
U.S.A Development Rosemont Non-Ferrous Metal Mine
RESOURCES BUSINESS
ASSET
COAL OIL & GAS METALS FOOD & COMMODITIES
“AIM TO BE A MAJOR PLAYER IN PALM OIL INDUSTRY”
Based on our operating experience in palm plantation and CPO(Crude Palm Oil) Mill in Indonesia, we plan to acquire 150,000 ha of plantation area and
produce 360,000 tons of CPO by 2025
PALM PLANTATION – INVEST / DEVELOP / OPERATE - Expand production volume by enhancement in productivity and investment in new plantation
■
OPERATE CPO (Crude Palm Oil) MILL ■
- Plan to build additional CPO mill
RESOURCES BUSINESS
PT.PAM CPO Mill, Indonesia
COAL OIL & GAS METALS FOOD & COMMODITIES
WHAT WE DO
CONCESSION AREA (2016~2025)
KEY ASSETS
(Unit: thousand tons)
PT. PAM
PT. GUM
PT. TBSM
LOCATION PHASE SHARE RATIO COMMENCEMENT
Indonesia
Indonesia
Indonesia
20,000ha
17,000ha
8,000ha
2009
2018
2018
In consideration of acquiring new assets (development / production stage) in Kalimantan, etc. ■
COUNTRY CONCESSION AREA
West Kalimantan
West Kalimantan
West Kalimantan
95%
95%
95%
(Unit: thousand ha)
Production
CPO PRODUCTION (2016~2025)
2016 2017
2018 (E)
2020 (E)
2025 (E)
68 86
130
280
360
20
100
45
RESOURCES BUSINESS
20
PT.PAM Palm Plantation, Indonesia
2016 2017
2018 (E)
2020 (E)
2025 (E)
150
COAL OIL & GAS METALS FOOD & COMMODITIES
Production / Development
Production
INFRA & INDUSTRIAL BUSINESS
CHEMICALS & PROJECT
POWER & INFRA PROJECT
AUTOMOTIVE
IT
Bodashidi Coal-to-Chemical Plant, China Wuwei Thermal Power Plant in Gansu, China
Ethane Cracker & PE/PP Plant in Kiyanly, Turkmenistan
“REINFORCING BUSINESS STABILITY BY FOCUSING ON KEY ITEMS, WHILE LOOKING FOR INVESTMENT OPPORTUNITIES IN CHEMICAL PLANT AND OFF-TAKE RIGHTS” Based on our expertise in trading, we have secured off-take rights by acquiring
stake in coal-to-chemical plant in Inner Mongolia and winning orders for gas treatment, ethane cracker and PE/PP plants in Turkmenistan
SECURE PRODUCT SALES RIGHT THROUGH DEVELOPMENT AND INVESTMENT IN CHEMICAL PLANTS
■
CHEMICALS & PETROCHEMICALS TRADING ■
- Methanol, MTBE, Refrigerant, Organic / Inorganic chemicals
- Fertilizers (Urea, Sulfur, etc.) PE, PP, PTA, etc.
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
INFRA & INDUSTRIAL BUSINESS
Bodashidi Coal-to-Chemical Plant in Inner-Mongolia, China
WHAT WE DO
KEY ASSETS
BODASHIDI (BDSD)
PRODUCTS CAPA (MT/YEAR)
OWNERSHIP PHASE
Inner Mongolia Urea 940K 29% Production
COUNTRY
Oman PTA Oman PTA 1,100K 30% Development
Additionally, minority stakes(10%) in LG Bohai(China, VCM / PVC), LG Vina(Vietnam, Plasticizer) ■
OFF-TAKE STATUS
Oman PP
PRODUCTS CAPA (MT/YEAR)
OFF-TAKE (MT/YEAR)
PHASE COUNTRY
Turkmenistan PE
Turkmenistan PP
Oman PP 340K 100~110K Production
Development
Development
Turkmenistan
Turkmenistan PP
390K
80K
PE 390K
80K
INFRA & INDUSTRIAL BUSINESS
ASSET
ASSET
**
**
***
* ** Polypropylene
Polyethylene ***
Purified Terephthalic Acid
*
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
Gas Treatment Plant in Galkynysh, Turkmenistan
“PROJECT DEVELOPER IN THE FIELD OF POWER PLANT AND INFRASTRUCTURE PROJECT”
The company takes significant role in developing industrial infrastructures to accelerate industrialization in each emerging market
PROJECT DEVELOPMENT ■
EQUITY INVESTMENT ■
FEEDSTOCK SOURCING
■
PROJECT FINANCING ■
EPC, O&M ORGANIZING ■
INFRA & INDUSTRIAL BUSINESS
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
Hasang Hydro-electric Power Plant, Indonesia
WHAT WE DO
KEY ASSETS
Musandam Power Plant
CAPA OWNERSHIP PHASE
Oman 120 MW 30% Production
COUNTRY
China 700 MW 30% Production
INFRA & INDUSTRIAL BUSINESS
ASSET
Indonesia 41 MW 95% Construction
Wuwei Thermal Power Plant
Hasang Hydro Power Plant
GAS, DIESEL
FUEL
COAL
WATER
PRODUCTS
Power
Power, Heat
Power
Cement Plant, Myanmar
KEY BUSINESS IPP PROJECT INDUSTRIAL INFRASTRUCTURE
BUSINESS TYPE
STRATEGIC REGION
EXAMPLES
▪ Development of IPP Projects through investment and EPC participation
▪ Infrastructural development in strategic region
▪ Asia ▪ Middle East etc.
▪ Thermal Power Project ▪ Gas-Diesel Power Project ▪ Hydro-electric Power Project
▪ Cement Plant ▪ Water / Wastewater Treatment Plant ▪ Natural resources related Infrastructure
Classification
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
Cement Plant Myanmar 450,000 TON COAL Cement 51% Production
▪ Asia ▪ Middle East etc.
“WE ARE SOURCING MAIN COMPONENTS FOR TV, MOBILEPHONE, PC AT COMPETITIVE CONDITIONS WHILE SUPPLYING TO OUR CUSTOMERS IN A TIMELY MANNER.”
In addition, we are creating values to our vendors and customers by optimizing cost structure through our Vendor Management Inventory(VMI) service
ITEMS : LCD PANEL, ELECTRONIC EQUIPMENTS AND COMPONENTS ■
(Purchase, Procurement, Stock, Supply Management) LOGISTICS AND WAREHOUSE CONTROL
FINANCING AND RISK MANAGEMENT
■
■
INFRA & INDUSTRIAL BUSINESS
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
WHAT WE DO
VMI APPLICATION SCOPE
MAJOR CLIENTS
LG Electronics, LG Display, BOE, AUO, Innolux, CSOT, Sharp, Canon, Qualcomm, Nichia, CDOT, Sunny Oppotech, HLDS, HP, Lenovo, DELL, Apple, Acer etc.
JIT* SCOPE
PRODUCTION / RELEASE
SHIPPING TRANSIT CARRY -IN
STORAGE LINE WAREHOUSE
CARRY -OUT
*JUST IN TIME
Nanjing HUB Warehouse, China
HUB
INFRA & INDUSTRIAL BUSINESS
CUSTOMS CLEARANCE
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
“INTEGRATED SOLUTION PROVIDER TO AUTOMAKER”
In cooperation with LG automotive affiliates and leading tier1 partners, we provide integrated solutions from vehicle engineering, EV powertrain and parts supply
ENGINEERING - Vehicle
■
- Powertrain - Manufacturing
AUTOMOTIVE PARTS - EV components
■
- Motor & Sensor - Drivetrain (4WD)
- Engine components
INFRA & INDUSTRIAL BUSINESS
- LED Lighting
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
WHAT WE DO
MATERIAL SUPPLY
VEHICLE ENGINEERING
MANUFACTURING ENGINEERING
EV POWERTRAIN POWERTRAIN
ENGINEERING
PARTS DEVELOPMENT & SUPPLY
AFFILIATES WORK SCOPE
LG Electronics
LG Innotek
LG Chem
LG Hausys
Vehicle Engineering ■
EV Powertrain / Infotainment ■
Motor & Sensor / LED Lighting ■
Automotive Battery ■
Plastic engine parts / Automotive skin ■
LG Display In-Vehicle Display ■
INFRA & INDUSTRIAL BUSINESS
CHEMICALS POWER & IT AUTOMOTIVE & PROJECT INFRA PROJECT
APPENDIX
SOCIAL CONTRIBUTION
GLOBAL NETWORKS
FINANCIAL HIGHLIGHTS
‘Bridge of Love’ in Sekadau near the Palm Plantation, Indonesia
INVESTMENT ASSETS
SOCIAL CONTRIBUTION
Our social contribution focuses on helping the self-reliance of vulnerable social groups by the voluntary participation of employees, which pursues improving the quality of life of local people and developing local communities around our worksites. Particularly, in Korea, we are collaborating with the 「Seobu Welfare Center for Persons with Disabilities」 to join culture events for the disabled aimed at supporting their adaptation to the society. We have also built solid trust with local communities where our overseas projects are conducted through social contribution activities.
LGI(HQ) employees, conduct volunteer work for the disabled and the disadvantaged
LGI(HQ) employees, conduct voluntary service for disabled person’s work adjustment training
Indonesia PT. PAM (Palm Plantation and CPO Mill)
Supports for revamping a wooden bridge
Medical volunteering services
Scholarships to high school students
Repair of local roads
Cement Plant in Myanmar
Support for teachers’ salary
Indonesia PT. MPP (Bituminous coal mine)
Construction of an Islam temple in Zmbayam Dalam Village
Medical supports for local people
Delivery of school supplies to Elementary school students in Smbba Yangwoo Village
Repair of a wooden bridge in Bumi Etam Village
Support for medical facilities for low-income patients
Donation of daily necessities to Karangan flood victims
Indonesia PT. GAM (Bituminous coal mine)
BALANCE SHEET (CONSOLIDATED)
INCOME STATEMENT (CONSOLIDATED)
(Unit: KRW billion)
ITEMS 2015 2016 2017
ASSETS 5,383.5 5,177.3 4,967.6
CURRENT ASSETS 3,074.2 2,672.0 2,554.2
NON-CURRENT ASSETS 2,309.3 2,505.3 2,413.4
LIABILITIES 3,840.2 3,531.9 3.382.1
CURRENT LIABILITIES 2,589.1 2,098.3 2,130.3
NON-CURRENT LIABILITIES 1,251.1 1,433.6 1,251.8
EQUITY 1,543.3 1,645.4 1,585.5
ITEMS 2015 2016 2017
SALES 13,224.5 11,966.7 12,827.2
GROSS PROFIT 513.7 745.9 750.6
OPERATING PROFIT 81.7 174.1 212.3
NON-OPERATING PROFIT (296.9) (40.9) (34.4)
PROFIT BERFORE TAX (215.2) 133.2 177.9
NET INCOME (217.1)* 84.8 88.2
* Including impairment loss in oil asset
FINANCIAL HIGHLIGHTS
(Unit: KRW billion)
Singapore
Japan
Europe
GLOBAL NETWORKS
Seoul (HQ)
Hong Kong
Shanghai U.S.A.
Head Office
Branch Office
Liaison Office
Head Office and Subsidiaries
Branch Offices Liaison Offices
7
20
8 (As of April 2018)
Moscow
Istanbul Ashgabat
Tehran
Dubai
Muscat
Mumbai
Almaty
Erdos Beijing
Lanzhou
Chongqing
Guangzhou Taipei Shenzhen
Sao Paulo
Jakarta
Yangon Bangkok
Ho Chi Minh
INVESTMENT ASSETS
1
5
6 1
2
4
3
2
1
2
4
3
3
2
4
Coal
PT. MPP in Indonesia
PT. GAM in Indonesia
Wantugou in China
Ensham in Australia
1
2
3
4
Palm
PT. PAM in Indonesia
4
3
2
1
Power & Infra Project
Musandam IPP in Oman
Wuwei IPP in China
Cement Plant in Myanmar
Hasang Hydroelectric Power Plant in Indonesia
2
1
Chemicals & Project
PTA Plant in Oman
Inner Mongolia Coal-to- Chemical Plant in China
Metals
Tianjin Steel Flower in China
Guangzhou Steel Flower in China
Haiphong Steel Flower in Vietnam
POSCO-PWPC in Poland
POSCO-IPPC in India
Thai Dongbu Steel in Thailand
3
4
5
6
6
5
4
3
2
1 Block 8 in Oman
Block 11-2 in Vietnam
GeoPark in Chile
GeoPark in Colombia
ADA in Kazakhstan
LNG Project in Qatar
Oil / Gas
Investment Assets
(As of April 2018)
26
PT. GUM in Indonesia
PT. TBSM in Indonesia
1
2
1
2
3
4
5 6
1
2
3
1
Rosemont Mine in U.S.A 7
7
2 1 3