LG H&H. IR Presentation 2012_3Q_eng

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  • 7/31/2019 LG H&H. IR Presentation 2012_3Q_eng

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    CONTENTS

    Audit of these results is still in progress. Figures in this disclosure are subject to change during the auditing process.

    3Q 2012 Sales and Operating Profit

    3Q 2012 Sales and Operating Profit by Business

    3Q 2012 Results by Business

    - Healthy

    - Beautiful

    - Refreshing

    Summary Financial Statements

    Attachment: Establishment of CheonAn Complex

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    Sales 926.8 1,052.2 13.5%

    Operating Profit 112.1 131.1 16.9%

    Recurring Profit 105.4 123.3 17.0%

    Net Profit 77.1 90.5 17.4%

    Increase(Unit: bn won) 3Q 2011 3Q 2012

    1/6

    08 09 1110

    16.9%

    12

    112.1

    131.1

    55.6

    69.4

    98.413.5%

    08 09 1110 12 07

    38.6

    0706 06

    28.9276.7 302.0

    523.2

    600.7

    759.3

    926.8

    1,052.2

    3Q 2012 Sales and Operating Profit

    Total company in 3Q 2012 delivered 1,052.2 bn won in sales (13.5% growth yoy), 131.1 bn won in operating profit(16.9% growth yoy), and 90.5 bn won in net profit (17.4% growth yoy). Sales, operating profit, and net profit reachedall-time high third quarter results, and sales exceeded one trillion won for the first time for a single quarter.

    Accumulated sales as of 3Q YTD exceeded three trillion won as well. Sales has increased for twenty-nine consecutive

    quarters since 3Q 2005, and operating profit has increased for thirty-one consecutive quarters since 1Q 2005.

    3Q 2012 Results (K-IFRS) (Unit: bn won)

    3Q Sales 3Q Operating Profit

    7-Year Trend

    2006-2007: K-GAAP Non-Consolidated, 2008: K-GAAP Consolidated, 2009~2012: K- IFRS

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    926.8

    1,052.2

    112.1

    131.1

    32%

    31%

    37%35%

    33%

    32%

    25%

    32%

    44%41%

    34%

    25%

    +11.9%

    +20.2%

    +9.4%

    16.9%

    +19.5%

    +25.9%

    +9.0%

    13.5%

    3Q 2011 3Q 2012 3Q 2011 3Q 2012

    % of Sales & Growth

    by Business Units(Unit: bn won)

    % of Operating Profit & Growth

    by Business Units(Unit: bn won)

    3Q 2012 Sales and Operating Profit by Business

    Healthy

    (Household

    Goods)

    Beautiful

    (Cosmetics)

    Refreshing

    (Beverage)

    Healthy

    (Household

    Goods)

    Beautiful

    (Cosmetics)

    Refreshing

    (Beverage)

    Both sales and operating profit for all business units Healthy, Beautiful, and Refreshing have maintained theirupward trend in 3Q 2012. In particular, as domestic and international cosmetics business delivered high growthcontinuously from second quarter, cosmetics business sales and operating profit contribution increased, and led totalcompanys operating profit margin expansion. On a yoy basis, sales increased 9.4% in Healthy, 20.2% in Beautiful,

    and 11.9% in Refreshing. Operating profit increased 9.0% in Healthy, 25.9% in Beautiful, and 19.5% in Refreshing.

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    HEALTH

    07 08

    28.4

    09

    30.3

    10

    39.4

    11

    53.7

    12

    44.6

    49.3

    9.0%

    07 08 09 10 11 12

    210.2

    9.4%232.6

    267.2

    300.8

    339.8

    371.8

    3Q 2012 Results by Business - Healthy

    2007~2009: K-GAAP Non-Consolidated, 2010~2012: K-IFRS

    Operating Profit

    Sales

    (Unit: bn won)

    (Unit: bn won)

    Despite negative consumption sentiment and input cost increase

    from governments strong pressure not to raise prices,

    salesincreased 9.4% yoy to 371.8 bn won and operating profit

    increased 9.0% yoy to 53.7 bn won.Main categories, including skin care, dishwashing liquid, and

    laundry detergent, all showed continued strong sales growth of

    more than 10% each. Chu-suk (Korean Thanksgiving) gift-set

    sales increased with new differentiated design and function

    focused product assortment.

    Design and convenience focused new product launches

    continued this quarter, such as: (1) Tech OK Melting Sheet

    Laundry Detergent, sheet-type laundry detergent that dissolves

    in water, (2) Tech 4x Concentrate Laundry Detergent Mix, smallsingle-usage packaged convenient laundry detergent, and (3)

    Elastine Dry Shampoo, an instant hair shampoo that cleans hair

    and scalp without water.

    3/6

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    BEAUTIFU

    07 08

    10.2

    09

    16.3

    10

    20.7

    11

    44.5

    12

    28.7

    35.4

    07 08 09 10 11 12

    95.4

    25.9%

    20.2%

    123.8

    146.5

    257.4

    285.1

    342.7

    4/6

    3Q 2012 Results by Business - Beautiful

    Operating Profit

    Sales

    (Unit: bn won)

    (Unit: bn won)

    2007~2009: K-GAAP Non-Consolidated, 2010~2012: K-IFRS(Unit: bn won)

    Prestige

    3Q 11 3Q 12

    102.3122.7

    20%

    Masstige

    3Q 11 3Q 12

    104.3111.5

    7%

    Mass

    3Q 11 3Q 12

    78.5

    108.5

    38%

    OHUI, Whoo, SU:M, Belif,

    Frostine, Chungyunjin, Stefany

    IsaKnox, LacVert, Sooryehan,

    Vonin, Beyond

    THEFACESHOP, VDI

    Sales increased 20.2% yoy to 342.7 bn won.

    Operating profitincreased 25.9% yoy to 44.5 bn won.

    In the prestige segment, main focused brand, Su:m, delivered 34%

    yoy growth, and Belif delivered over 200% sales growth. The worlds

    first refrigerated cosmetics, Frostines (launched this May), is

    continuously expanding with positive response from consumers.

    Masstige segment delivered 7% yoy growth due to strong growth in

    major brands, such as Beyond and IsaKnox. In particular,

    environmentally friendly body care brand, Beyond opened two road

    shops on top of 216 shop-in-shop stores in discount stores.

    In the mass segment, TheFaceShop(TFS) sales increased 27.8% yoy

    reaching 100.3 bn won. Overseas sales increased 74% to 21.0 bn won.

    Also, recently launched a new color brand shop VDL for both domestic

    and overseas markets, utilizing TFS brand shop managing know-how.

    Overseas business, on top of strong growth of Ginza Stefany and TFS

    is continuously increasing its sales portion from 10%(3Q11) to

    16%(3Q12). TFS has total of 2,391 stores - 1,012 stand alone stores in

    Korea and 1,379 points of sale (544 stand alone stores and 835 points

    of sale). TFS plans to expand to India with Sephora this November 1st.

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    08 09 10 11

    30.3

    12

    27.2

    11.4%

    08 09 10 11

    265.1

    12

    234.3

    13.1%

    7.5%

    72.7

    11 12

    67.6

    11 12

    2.5

    0.3

    07

    07

    25.1

    19.2

    11.8

    4.9

    201.1

    170.8151.3

    120.2

    REFRESHI

    Operating Profit

    Sales

    2007~2009: K-GAAP Non-Consolidated, 2010~2012: K-IFRS

    (Unit: bn won)

    (Unit: bn won)

    Coca-Cola Bev.and others

    Haitai Bev.

    Coca-Cola Bev.and others

    Haitai Bev.

    Sales increased 11.9% yoy to 337.8 bn won with continuous growthof both Coca-Cola Beverage and Haitai Beverage.Operating profit increased 19.5% yoy to 32.8 bn won, reaching9.7% operating profit margin with 0.6%p yoy expansion.

    Coca-Cola Beverage sales increased 13.1% yoy to 265.1 bn won,and operating profit increased 11.4% yoy to 30.3 bn won

    Carbonated beverage sales grew 14% yoy. Cola-Cola brand salesgrew as regular products showed steady growth and differentiatedpackages including Jean Paul Gaultier special package wereintroduced. New product launch continued, including Schweppesand Fanta Smoothie. Non-carbonated beverage sales grew 12%yoy as: (1) Georgia coffee grew with strengthened product portfolio(2) newly introduced Minute Maid Mini Glass Bottle showed stronggrowth, and (3) water category grew.

    Haitai Beverage sales increased 7.5% yoy to 72.7 bn won andoperating profit further expanded to 2.5 bn won from successfulmain brand renewals and Sunkist Mini Glass Bottle juice strongperformance.

    3Q 2012 Results by Business - Refreshing

    ExpandProfit

    Sunkist Minute Maid

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    Summary Financial Statements (K-IFRS)

    Income Statement Balance Sheets

    (Unit: bn won) 3Q 2011 3Q 2012 3Q YTD 2011 3Q YTD 2012

    Sales 927 1,052 2,622 3,002

    COGS 482 526 1,328 1,471

    Gross Profit 445 526 1,294 1,531

    SG&A and Others 333 395 971 1,155

    Operating Profit 112 131 323 376

    Non-Operating Loss 7 8 21 22

    Recurring Profit 105 123 302 354

    Income Tax 28 33 79 95

    Net Profit 77 90 224 258

    (Unit: bn won) 2011 Year-end

    Assets 2,369 2,875

    Cash & Cash Equivalent 92 119

    Accounts Receivable 327 519

    Inventories 306 309

    PPE 1,602 1,879

    Tangible Asset 855 951

    Intangible Asset 664 817

    Liabilities 1,308 1,627

    Accounts Payable 231 236

    Other Payables 151 198

    Borrowings 565 729

    Short Term Borrowings 183 461

    Long Term Borrowings 382 268

    Total Shareholders' Equity 1,061 1,248

    Shareholders' Equity 89 89

    Capital Surplus 97 97

    Accumulated Other

    Comprehensive Income0 -5

    Retained Earnings 884 1,071

    Other Capital -72 -73

    Minority Interest 63 69

    Sep. 2012

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    Attachment: Establishment of CheonAn Complex

    LG H&H is ready to activate the long-term master plan for future growth and cosmetics globalization.To reinforce the long-term strategy, LG H&H has executed an agreement to acquire 100% of Future Corp.and its 150,000 pyeong land for 49.3 bn won.

    - Newly acquired land is at CheonAn, which has high accessibility from Seoul via KTX (11km fromCheonAnAsan KTX station), metropolitan subway line (9km from CheonAn subway station), and CheonAnNonsan expressway (4.5km from South Cheonan IC). The land is also located next to Haitai BeveragesCheonAn factory.

    With this acquisition, 280,000 pyeong (229 acre) base for future growth will be established at CheonAn,including Haitais land.