Ls Electric Co., Ltd. · KRX:010120
Ls Electric — Q4 2016 Earnings Presentation
26 slides from Ls Electric's earnings presentation, 2017
Slide 1: 4Q16 Review & Outlook
Sauturnc SMART ENERGY A4Q16 Review & Outlook LSis
Slide 2: Disclaimer
Disclaimer This presentation material is prepared for investors’ reference, based on data that have not been filed with the financial supervisory commission. Actual business performance may not necessarily be consistent with the projections herein, as a result of unexpected changes in the market env
Slide 3: Total Results
Total Results
Slide 4: 4Q '16 Total Results
4Q ‘16 Total Results ◆ Sales Y-o-Y 71.8bwn increased(12.1%), Q-o-Q 139.5bwn increased(26.6%) ◆ Operating Profit Y-o-Y 13.1bwn decreased(△32.1%), Q-o-Q 2.5bwn decreased(△8.2%) Income Statement (unit : bwn) Sales & OP (unit : bwn) Segment Q4 2015 Q3 2016 Q4 2016 Y-o-Y Q-o-Q Sales 592 524 663 12.1% 26.
Slide 5: 4Q '16 Sales Breakdown
4Q ‘16 Sales Breakdown Breakdown by Business (unit : bwn) ◆ Headquarters - Electric Equipment : Favorable demand in semi- (6.8%) conductor & chemical mkt, improving profitability (3.8%) by high-end market (8.0%) (2.8%) - Electric Infra : Domestic improved continuously, (11.7%) (10.6%) (7.9%) oversea
Slide 6: 4Q '16 Financial Position
4Q ‘16 Financial Position ◆ Total assets 2,260bwn (Y-o-Y 7.8bwn increased, Q-o-Q 37.9bwn increased) Total liabilities 1,193bwn (Y-o-Y 43.6bwn decreased, Q-o-Q 8.3bwn increased) ◆ Total liabilities/Equity posted 112%, net Debts ratio dropped 13%p(Y-o-Y, 45%→32%) Finacial Statement (unit : bwn) Financ
Slide 7: Business Results & Outlook
Business Results & Outlook
Slide 8: Electric Equipment
Electric Equipment 4Q ‘16 Results ‘17 Outlook ◆ Sales Y-o-Y 8.5% decreased, Q-o-Q 0.1% decreased [ Market ] ◆ OP Y-o-Y 3.2% increased, Q-o-Q 9.5% decreased - Local investment shrinkage due to political issue - Volume decreased due to economic struggle, but improved profitability by high-end market -
Slide 9: Electric Infra(T&D)
Electric Infra(T&D) 4Q ‘16 Results ‘17 Outlook Sales Y-o-Y 43.8% increased, Q-o-Q 50.0% increased [ Market ] - Infrastructure investment decrease due to OP Y-o-Y 336.4% increased, Q-o-Q turned around economic recession - Domestic improved with eliminating effect of - Funding increase for investm
Slide 10: Automation
Automation 4Q ‘16 Results ‘17 Outlook [ Market ] Sales Y-o-Y 12.6% decreased, Q-o-Q 1.5% decreased - Capex decrease by economic recession, but OP Y-o-Y 36.4% increased, Q-o-Q 4.5% decreased favorable demand from semiconductor and chemical mkt - Volume decreased due to economic recession - Smart
Slide 11: Convergence Business
Convergence Business 4Q ‘16 Results ‘17 Outlook Sales Y-o-Y 6.6% decreased, Q-o-Q 59.5% increased [ Market ] - Continuous policy driving on ESS in domestic OP Y-o-Y, Q-o-Q continuous loss (New guidance for using ESS as an emergency electric power source, Introduction private rate - Trans S.O.C a
Slide 12: Subsidiaries
Subsidiaries 4Q ‘16 Results ‘17 Outlook Sales Y-o-Y 12.1% increased, Q-o-Q 24.7% increased [ Market ] - Extension of competition with global players OP Y-o-Y 27.3% decreased, Q-o-Q 0.4% increased in Chinese renewable energy market - Volume decreased due to weak solar market in china - Business e
Slide 13: Appendix 1-1) Income Statement
Appendix 1-1) Income Statement (unit : bwn) Segment '15.4Q '16.3Q '16.4Q QoQ YoY Sales 592 524 663 26.6% 12.1% Costs of Sales △476 △430 △557 29.5% 17.1% Gross Profit 115 94 107 13.4% △8.0% (%) (19.5%) (18.0%) (16.1%) - - SG&A △75 △64 △79 23.5% 5.0% Operating Profit 41 30 28 △8.5% △32.3% (%) (6.9%) (
Slide 14: Appendix 1-2) Statement of Financial Position
Appendix 1-2) Statement of Financial position Segment '15.4Q '16.3Q '16.4Q QoQ YoY (unit : bwn) Total Assets 2,252 2,222 2,259 △2% △0% Current Assets 1,394 1,388 1,418 △4% 3% Cash&Cash Equivalents 286 381 340 △14% 6% Inventories 162 166 147 △2% △2% Other Current Assets 947 841 931 1% 2% Non-Current
Slide 15: Appendix 1-3) Statements of Cash Flows
Appendix 1-3) Statements of Cash Flows (unit : bwn) Segment '15.4Q '16.4Q YoY Cash and cash equivalents 332 286 △46 at the beginning of year Cash Flows From 100 242 142 Operating Activities Cash Flows From △96 △102 △6 Investing Activities Capex △59 △41 19 R&D △14 △13 1 Others △23 △49 △26 Cash Flows
Slide 16: LSIS Company Introduction: LS Group
Appendix 2) LSIS Company Introduction 1) LS Group Growing into a World’s Best from the Nation’s First! Leading company in the industrial electric, electronics, materials and energy field following its separation from LG in 2003 LS History Management Philosophy LS is a faithful and reliable business
Slide 17: LSIS Company Introduction: LSIS
Appendix 2) LSIS Company Introduction 2) LSIS Leader in Power Solutions, Automation & Green Business The Leading Company in the Power Distribution & Automation Industry The first to build a Smart Grid, Green Village and Green Factory Founded 1974 Sales 2,202billion(KRW) Employees 3,500 Headquarters
Slide 18: History (1970s ~ 2007)
Appendix 2) LSIS Company Introduction 3) History 1. A History of Challenging the Future (1970’s ~ 2007) 2007 Feb. Opened Marketing Subsidiary in Dubai 1970’s ’74 Jul. Established Goldstar Instrument & Electrical Co., Ltd 2005 Mar. Renamed from LG to LS Industrial Systems Sep. Constructed the Electri
Slide 19: History (2007 ~ 2012)
Appendix 2) LSIS Company Introduction 3) History 2. Shifting the strategy to growth paradigm (2007 ~ 2012) 2012 May. completed a EV Relay factory in Cheongju, Korea 2008 Apr. Relocated its headquarters to Anyang LS Tower Jun. Awarded the Best Korean Company Grand Award Dec. Selected as one of the To
Slide 20: History (2013 ~ 2015)
Appendix 2) LSIS Company Introduction 3) History 3. Challenging for the future of Smart Energy (2013 ~ 2015) 2015 Jan. Declared value-based management Mar. Newly constructed R&D campus in Anyang 2013 Apr. Awarded the Great Place to Work Award for 2 consecutive years May. MOU with China’s Dongfang Gr
Slide 21: Mission & Vision
Appendix 2) LSIS Company Introduction 4) Mission & Vision We guarantee all our customers a safe and affluent life and a happy future by supplying them with convenient smart energy. Mission Operating Sales Profit Vision 2020 KRW 6 trillion KRW 500 billion - Boosting Our Market Position as a Power Sol
Slide 22: Business Introduction: Electric Infra and Equipment
Appendix 3) Business Introduction Leading Provider of Total Electric Power, Automation & Green Business Solutions Electric Infra Business Primary Ultra-high voltage power transmission Transmission & distribution system equipment such as Power Plant Primary Substation gas insulated switchgear (GIS) <
Slide 23: Business Introduction: Automation and Convergence
Appendix 3) Business Introduction Automation Business From simple automation control to large-scale manufacturing facilities Factory / Building and process control, LSIS provides the (FA/PA) Discrete Automation optimal solutions to diverse industrial fields. < Main Products > - Variable Frequency Dr
Slide 24: HVDC
Appendix 4) HVDC HVDC system converts AC to DC to transmit long distance and then converts back again to Connect with the AC grid with very low loss Appendix 12/14
Slide 25: ESS Applications
Appendix 5) ESS Applications Appendix 13/14
Slide 26: PV Power Plant
Appendix 6) PV Power Plant We provide total solution for PV Power Plant. In addition to PV products, we can provide customers with all kinds of electric power equipment manufactured by LSIS. System Components PV Power System - Module - Inverter - Balance of System - HV Switchgear - MV Switchgear Sub