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(June2012) Cheil Industries IR (v2)
(June2012) Cheil Industries IR (v2)
(June2012) Cheil Industries IR (v2)
June, 2012
CONTENTS
1. Company Overview
2. Earnings Release 1Q12
3. Appendix
This document is provided for the convenience of investors only, before the completion of an external audit. Some figures may be subject to change according to the audit outcomes.
As the forward-looking statements this release may contain are based on the companys
own business outlook, they may differ from the real result. Therefore, the responsibility for investment on this material is imputed only to investors.
The financial information in this document are consolidated earnings results based on K-IFRS.
Company Overview
6,100
5,113
1,353 1,700
Cheil Woolen Fabrics Industries was founded as a parent company of Samsung Moved into the fashion industry, and became the first Korean company to produce ready-made clothes Diversified the business portfolio to include chemicals by developing synthetic resins as ABS and PS Entered the electronic materials business involving the production of semiconductor and display materials Continually growing through a diversified business portfolio encompassing chemicals, EM, and fashion; also building new businesses that will bolster our future competitiveness
1990s
1,700
1,413
1,661 433
33 691 716 1990 2000 2010 2012(E) 2,267 2,600
2000 ~ 2009
2010 ~
Sales (wtn) O P
(wbn)
3.7 240
4.3 264
5.1 330
2.3
5.6 287
2.4
6.1 340
2.6
1.8
1.8
1.2 0.8
1.4
1.5
1.7
44 95 95 98 105
one-off income
- Aggressively exploring new business opportunity such as OLED and rechargeable battery
140
1.4
1.5
Operating more than 20 brands covering casual, mens, and womens wear
- #1 player in domestic fashion market - Galaxy and Bean Pole have consistently ranked at the top of domestic brand preference
1.0
50
1.1
52 74 68
1.7
100
Workforce
R&D (Chemicals) R&D (E M)
(individuals)
420
49
4,770
3,896
332 203
4,869
353 196
317
120
242
3,257
307 158
81 140
349 196
171
125
88 37 43 2008 41 21 52 2009
83
171
2,776 3,307
110
4,190
4,257
93
108 51 2010 2011 2012(E) 110
2009
2010
2011
2012(E)
6
Business Opportunities
Materials (Chemicals & EM)
Materials market will continue expanding driven by newly emerging demand
Fashion
The growth momentum will be placed on global expansion
(Wtn)
End market
`20 (Wtn)
80 mil
110 mil
99
/ 99
8 Green/Energy Electronic 22 Materials Chemicals 69 2011
Materials market
Global
69
109 (5%)
US China Korea
2011
2020(E)
7
Major Products -
Chemicals
Styrene Products ABS General ABS, Extrusion ABS, Metal Plating ABS, etc. PS Flame Retardant HIPS Specialties Transparent ABS
- Advanced high transparent ABS with excellent colors
Engineering Plastics PC
PC, Flame Retardant PC, PC/ABS, etc.
EP
PBT/ABS, PA/GF, MPPE, etc.
Automobile Applications Providing high-tech materials and solution in partnership with global automobile makers such as Audi, BMW, Ford, etc.
Non-painting resin
- Gives off the appearance of painted surface while solving flow marks and weld line issues
Eco-friendly materials
- Resins made with recycled and used PET bottles
8
Major Products -
Electronic Materials
Display Film materials
Polarizer - Polarizes the emissions generated by LCD light sources MAS (Prism sheet) - Makes LCD brighter and richer
Process materials
PDP Paste - A high-viscosity liquid-conductive or insulating substance, used to form insulating bodies and components of electrodes
Packaging materials
EMC (Epoxy Molding Compound) - A protector that effectively protects semiconductor circuits from external damage and contamination DAF (Die Attach Film) - An adhesive for mounting and stacking chips on wafers EMC
Color Resist - A photosensitive color dispersing agent used in the manufacture of color filters, a core component in LCDs
DAF
Major Products -
Fashion
Casual Bean pole
A family brand that includes Bean Pole Mens, Ladies, Golf, and etc. It has the strongest brand power in Korea as a single casual brand.
Fubu
Rapido
(only in China)
8 seconds
A Korean fast fashion brand launched in February 2012, offering a wide range of trendy items at affordable prices.
Rogatis
MVIO
Pal Zileri
10
12
Profitability
(Wbn)
1,384
1,429
429
1,400
4Q 11 OP
QoQ
1Q 12
YoY
1Q 11
454
377
49
94%
95
7%
103
362
376
384
RP
613 621
31
171%
84
24%
110
551
NP
40
59%
64
30%
92
4Q11
1Q12
1Q11
12
Financial Status
Financial Position
2012.3 Assets Quick Cash Receivables Inventories Non-current Liabilities Total Borrowings (Net Borrowings) Shareholders Equity 2011.12
(Wbn)
Financial Ratios
2010.12 2011.12
53
(%)
Change
2012.3
57
5,367
1,619 60 695 760 3,748
4,931
1,435 96 485 743 3,496
436
184 36 210 17 252
46
Shareholder
Equity Ratio Net Debt to Equity Total Borrowings / Total Assets
69
65
64
24 11
27
1,957
1,017 (931)
1,714
853 (763)
243
164 (168)
17
8
19
3,410
3,217
193
13
Chemicals
Business Results
613
551 621
(Wbn)
Oil Price S A B M N D
ABS(spot)
Despite high raw materials price and low seasonality, QoQ sales and margin improved as
Overall demand to grow as set product will increase for the demand related with Chinese Labor day and Olympics
14
E M
Business Results
Polarizers Display Semiconductors
(Wbn)
362
87
376
96
384
75
157
147 155
128
125
152
Polarizer - Weak Japanese yen had cost reduction effect, However, margin loss continued due to low market demand Margin improvement to continue amid
internal cost reduction and sales increase along with the IT demand upswing
15
4Q11 OP % 18 4.9
1Q12 44 11.6
1Q11 36 9.5
Fashion
Business Results
Casual Men Women etc. Others
(Wbn)
454
35 105
429
15 99
377
12 77
155
129
116
Outdoor, Bean pole outdoor(Mar) etc. The outset sales of S/S expected to be
4Q11 OP % 23 5.1
1Q12 26 6.1
1Q11 29 7.6
depressed due to unfavorable weather, However, sales will improve from strong seasonality and expansion of new launched brands
16
Non-operating Gains/Losses
Analysis
95
Finance Losses Equity Method Losses
(Wbn)
(Wbn)
9 148
84
QoQ -
1Q 12 -
YoY
+ 5.1
1Q 11 -5.1
Samsung Petro-chem
-1.1
- 2.3
-3.4
- 22.4
19.0
Others
0.2
+ 0.1
0.3
+ 0.2
0.1
Total O P R P
-0.9
- 2.2
-3.1
- 17.1
14.0
17
Appendix
(Consolidated/K-IFRS)
11.1Q 11.2Q 11.3Q 11.4Q
FY2011
10.1Q
10.2Q
10.3Q
10.4Q
FY2010
12.1Q
Chemicals E M
91
25 39 28 -1 -7 8 91 79
103
69 23 11 1 -4 8 108 88
87
39 40 8 1 -15 10 82 66
49
25 -3 9 17 15 64 44
330
159 98 55 18 -25 40 345 276
103
36 36 29 2 -7 14 110 92
63
23 27 11 2 -7 56 55
72
2 68 5 -3 7 79 72
49
10 18 23 -2 -17 -1 31 40
287
71 149 68 -1 -24 13 276 259
95
26 43 26 -8 -3 84 64
19
F a s h i o n O t h e r s
F i n a n c e incomes/expenses
Recurring Profit N e t P r o f i t
This document is provided for the convenience of investors only, before the completion of an external audit. Some figures may be subject to change according to the audit outcomes.
(Non-consolidated/K-IFRS)
10.1Q
10.2Q
10.3Q
10.4Q
FY2010
11.1Q
11.2Q
11.3Q
11.4Q
FY2011
12.1Q
Chemicals
E M
F a s h i o n O t h e r s
Operating Profit
Chemicals
E M
F a s h i o n O t h e r s
F i n a n c e incomes/expenses
30
-7 91 78
11
-1 -3 99 79
10
2 -14 76 67
12
-18 -1 22 16
63
-18 -25 288 240
33
2 -6 98 81
13
1 -6 59 55
8
1 7 71 63
28
-18 31 42
82
4 -23 259 241
31
-8 94 74
This document is provided for the convenience of investors only, before the completion of an external audit. Some figures may be subject to change according to the audit outcomes.
20