Transcript Document

Honam Petrochemical Corp.
2007. 08. 15
Lotte Tower Bldg.,395-67
Shindaebang-dong,Dongjak-ku,
Seoul, Korea. (ZIP: 156-012)
Tel 82-2-829-4114
Fax 82-2-834-6070
Company History
湖南石油化學(株)
Honam Petrochemical Corp.
1976. 3
1979. 12
Established the Company
1986. 6
1988. 4
R&D center
1988. 11
1991. 5
2nd PP plant
1992. 4
1997. 6
Naphtha Cracker and BTX plants
1998. 8
1999. 6
PET plant
2000. 3
2001. 6
EOA plant
2001. 11
2003. 5
NCC and BTX Revamping, 3rd PP plant
2003. 6
2004. 11
Acquired Hyundai Petrochemical With LG Chem.
2006. 7
2006. 9
Established Honam Chemical Trading(SHANGHAI) Corp.
2006. 10
Acquired Jiaxing Honam Engineering Plastic Co., Ltd
HDPE, PP and MEG Plant
2nd HDPE plant
Listed on the Korea Stock Market, 2nd MEG plant
3rd MEG plant
3rd HDPE plant
MMA plant
Power plant
Acquired KP Chemical
Established Joint Venture with MRC (Daesan MMA)
1
Shareholders & Locations
Locations
Shareholders
Head Office
(Seoul)
Free
Lotte Mulsan Co.,
Ltd.
Floating
(Korea)
42.7%
33.6%
Lotte Daesan
Petrochemical
(Daesan Plant)
R&D Center
(Daejeon)
KP chemical
(Ulsan Plant)
Hotel Lotte Co., Lotte (Japan)
Ltd.
10.0%
(Korea)
13.6%
Honam
Petrochemical
(Yeosu Plant)
湖南石油化學(株)
Honam Petrochemical Corp.
2
Products & Capacity
Ethylene
(720,000)
Honam Petrochemical
HDPE
(370,000)
EO
Naphtha
Cracking
Center
(2,200,000)
MEG
(400,000)
PET
(70,000)
EOA
(30,000)
Propylene
(365,000)
PP
(380,000)
Mixed C4
MMA
(50,000)
Pyrolysis
Gasoline
Compound Resin
(40,000)
Benzene
(150,000)
Toluene
(78,000)
Xylene
(47,000)
湖南石油化學(株)
Honam Petrochemical Corp.
3
Sales Breakdown - Year 2007 (1H)
Honam Petrochemical
 Honam is one of the most preferred suppliers in Asia Pacific based on the
advanced manufacturing technology, aggressive marketing and R&D
activities.
Sales by Distribution Channel
Sales by Product
PP
DOMESTIC
20%
EOG
18%
BTX
73%
15%
EXPORT
27%
湖南石油化學(株)
Honam Petrochemical Corp.
HDPE
22%
Etc.
12%
OLEFIN
PET 9%
4%
4
Market Situation
$ /MT
Raw Material Price
Naphtha
Ethylene
1500
1300
1100
900
700
500
300
'02
.1
2
3
4
5
6
7
8
190
11
'0312
.1
2
3
4
5
6
7
8
190
11
'0412
.1
2
3
4
5
6
7
8
190
11
'0512
.1
2
3
4
5
6
7
8
190
1
'06112
.1
2
3
4
5
6
7
8
190
11
'0712
.1
2
3
4
5
6
7
100
※ Naphtha price trends(C&F Japan) / Ethylene price trends(CFR N.E Asia)
湖南石油化學(株)
Honam Petrochemical Corp.
5
Market Situation
Main Products Price
HDPE
PP
MEG
1450
1250
1050
850
650
450
'0
2.
1
2
3
4
5
6
7
8
9
10
11
'0 12
3.
1
2
3
4
5
6
7
8
9
10
11
'0 12
4.
1
2
3
4
5
6
7
8
9
10
11
'0 12
5
1
2
3
4
5
6
7
8
9
10
11
'0 12
6
1
2
3
4
5
6
7
8
9
10
11
'0 12
7
1
2
3
4
5
6
7
250
※ HDPE(Yarn/Injection) / PP(HOMO) price trends(C&F F.E. AISA)/ MEG price trends(Asia Contract Price)
湖南石油化學(株)
Honam Petrochemical Corp.
6
Financial Review
Honam Petrochemical
[Unit: Billion Won]
B/S
I/S
2007
(1H)
2006
2005
1,127
2,181
2,113
Operating
Profit
166
255
340
Liabilities
Recurring
Profit
331
532
615
Equity
(Depreciation)
45
95
113
Total Debt
EBITDA
212
350
453
Debt/Equity
Ratio
Sales
湖南石油化學(株)
Honam Petrochemical Corp.
Assets
2007
(1H)
2006
2005
3,375
2,998
2,791
710
558
701
2,665
2,440
2,090
0
0
200
27%
23%
34%
7
Financial Review
Honam Petrochemical
“HPC runs in the most stable financial structure among the Korean petrochemical
companies.”
[Unit: Billion Won]
258
219
65%
47%
264
54%
Debt/Equity
Ratio
2001
Net Debt
湖南石油化學(株)
Honam Petrochemical Corp.
2002
2003
5144%
2004
34%
2005
23%
23%
2006
2007(1H)
-474
-496
-259
8
Affiliate Companies
Lotte Daesan
Financials
Shareholders
[Unit: Billion Won]
2007
(1H)
2006
2005
Sales
977
1,864
1,788
Operating Profit
26
38
74
Recurring Profit
33
46
65
(Depreciation)
144
286
279
EBITDA
170
324
353
2007
(1H)
2006
2005
1,537
1,354
1,450
Liabilities
609
454
590
Equity
928
899
860
Total Debt
306
210
341
Debt/Equity Ratio
66%
51%
69%
Honam 100%
I/S
Sales by Product
PP
EOG
BD
12%
12%
SM
15%
LLDPE
10%
Year 2006
Assets
21%
LDPE
ETC
9%
21%
湖南石油化學(株)
Honam Petrochemical Corp.
B/S
9
Affiliate Companies
KP Chemical
Financials
Shareholders
[Unit: Billion Won]
Honam 51.9%
2007
(1H)
2006
2005
Sales
972
1,628
1,530
Operating Profit
52
-17
76
Recurring Profit
55
5
88
(Depreciation)
51
102
102
EBITDA
103
86
178
2007
(1H)
2006
2005
1,063
1,079
1,113
Liabilities
425
481
519
Equity
638
598
595
0
0
16
67%
80%
87%
Public 48.1%
I/S
Sales by Product
PPR
29%
PTA
31%
ETC
18%
Year 2006
OX
9%
BZ
PIA 5%
7%
Assets
B/S
Total Debt
Debt/Equity Ratio
湖南石油化學(株)
Honam Petrochemical Corp.
10
Affiliate Companies
Consolidated Financials
Consolidated Financials
Other Important Affiliates
[Unit: Billion Won]
2006
Sales
I/S
B/S
2005
5,597
5,325
Operating Profit
410
600
Recurring Profit
551
693
(Depreciation)
385
395
EBITDA
795
995
2006
[Unit: Billion Won]
Company
Daesan
MMA
Share
50.0%
-
Seetec
50.0%
362 /
9
Lotte
E&C
32.8%
3,161 /
291
2005
Assets
4,159
4,114
Liabilities
1,453
1,767
Equity
2,706
2,347
Sales /
Net Profit
(2006)
Remark
 MMA/PMMA
business
 MRC 50%
 Utility supply to
Lotte Daesan
 LG chem 50%
 Construction
company
※ Lotte Daesan, KP Chemical and 2 affiliate companies of KP
湖南石油化學(株)
Honam Petrochemical Corp.
11
Expansion Plan
[ Honam ] : Total 680 billion won
Plant (Product)
Investment Volume
(Billion won)
Capacity, kta
Mechanical Completion
Date (Scheduled)
PC
240
65
2008. 4Q
MMA/PMMA JV
(50% share)
50
(total 200~250)
MMA 90
PMMA 40
2009. 1H
2008. 2H
about 390
(total 2,600)
Ethylene 900
PP 700
SM 600
PS 220
2011. 2H
QP JV
Cracker, Reformer and
downstream
(30% share)
[ Lotte Daesan ] : Total 670 billion won
Capacity, kta
Plant (Product)
New or Revamp
NCC
Mechanical Completion
Date (Scheduled)
Exist
Adds
Future
Revamp
EL : 650
PL : 325
+350
+175
1,000
500
BD
Revamp
100
+50
150
BRU (Benzene)
Revamp
200
+120
320
MEG
New
250
+390
640
SM
Revamp
330
+170
500
2008. 1Q
PP
New
250
+250
500
2008. 2Q
LLDPE
Revamp
160
+130
290
2008. 2Q
2008. 2Q
※ The plant remarked as ‘Revamp’ is planned to expand its existing capacity.
湖南石油化學(株)
Honam Petrochemical Corp.
12
New Vision of Lotte Petrochemical Division
“Exploring New Horizons”
NEW VISION
(2005~ 2014)
$10bl
VISION : Top Tier Chemical Company in ASIA
Sales : $10 Billion
Strategy
Strengthen Existing Business
Overseas Extension
Develop New Business
$5.5bl
$0.55bl
0.1bl
1980
湖南石油化學(株)
Honam Petrochemical Corp.
1995
New Vision
1st Vision
VITAL 21
2005
2014
13