introduction to lg international · these affiliates have global top tier competitiveness in lcd /...

Introduction to LG International

02

07

11

21

31

Table of Contents

About LG

LG International

RESOURCES BUSINESS

INFRA & INDUSTRIAL BUSINESS

APPENDIX

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 International is fostering natural resources development and industrial

infrastructure business proactively.

About LG

REVENUE

142 billion USD

EMPLOYEES

230,000 employed

NETWORKS

409 operations

60 countries

MARKET-LEADING LG

About LG

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.

(Revenue for 2018 in KRW trillion)

CHEMICALS

LG Household & Health Care

LG Hausys

28 Chemicals, Batteries

7 3

LG Innotek

ELECTRONICS

LG Display

61 TV, Smart Phones, Home Appliances

24 8

LG CNS

COMMUNICATIONS & SERVICES

10 Resources,

Infra & Industrial

12 3

LG U +

KEY AFFILIATES

About LG

“Jeong-Do” Management encompasses more than ethical management; it also means cultivating competencies that produce concrete outcomes,

enabling the company to excel competitively.

LG Way is the call to becoming a premier company; hence the essence of its strategic vision is embodied in NO.1 LG. At its foundation is the

management principles of Customer-Value Creation and People-Oriented Management, which are in turn implemented according to the high ethical

standards of behavior delineated by Jeong-Do Management.

Vision

Behavioral Mode

Management Principle

The ultimate goal of LG is to be recognized

as the market leader in business performance

as well as in management practices.

Ethical management and code of conduct

to enable capability development and fair

Competition.

The fundamental organizational principle

guiding LG from beginning as a firm.

LG Way

No.1 LG

Jeong-Do Management

Customer – value creation

People – oriented management

Since its establishment in 1953,

LG International has paved the foundation of the Korean economy through trading fiber and

home products.

It has played a leading role in the national economy through tapping into high-potentials areas.

Recently, LG International has been securing a sustainable competitive advantage through two

business pillars: natural resources business and industrial infrastructure business.

About LG International

BUSINESS STRUCTURE

Palm Oil &Gas Coal Metals RESOURCES

INFRA & INDUSTRIAL

Project IT Chemicals Automotive

LG International has focused on creating a stable portfolio based on an organic connection between

resources and infra & industrial businesses.

LG International has established a stable business structure based on our expertise and experience

accumulated in resources development, investing in power plants for competitiveness, and securing product

rights. LG International plans to continue to reinforce our business focus on resources and infrastructure,

and create new businesses to secure future growth engines.

LG INTERNATIONAL

RESOURCES BUSINESS

PALM

OIL & GAS

METALS

COAL

Coal mine of PT.GAM, Indonesia

Palm plantation of PT.PAM, Indonesia

Gas field of Block 11-2, Vietnam

WHAT WE DO

▲ PT.PAM, Indonesia

PALM COAL METALS OIL & GAS

AIM TO BE A MAJOR PLAYER IN PALM OIL INDUSTRY

Based on our operating experience in palm plantation and CPO Mill (Crude Palm Oil production plant) in

Indonesia, we plan to acquire 50,000 ha of plantation area and produce 350,000 tons of CPO by 2025

RESOURCES BUSINESS

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

(Unit: thousand tons)

CPO PRODUCTION 2016~2020

2016

68

2017

86

2018

130

2020 (E)

200

CONCESSION AREA 2016~2020 (Unit: thousand ha)

20

2016

20

2017

45

2018

60

2020 (E)

KEY ASSETS

PHASE

Production

Production /Development

Production

LOCATION

West Kalimantan

West Kalimantan

West Kalimantan

COUNTRY

Indonesia

Indonesia

Indonesia

ASSET

PT. PAM

PT. GUM

PT. TBSM

SHARE RATIO(%)

95

95

95

CONCESSION AREA

20,000ha

17,000ha

8,000ha

COMMENCEMENT

2009

2018

2018


RESOURCES BUSINESS

▲ PT.GUM, Indonesia


RESOURCES BUSINESS

COAL MINES – INVEST / DEVELOP / OPERATE

- Targeted regions : Indonesia, China, Australia, and etc.

COAL TRADING

- Origins : Indonesia, Australia, Russia, China, and etc.

- Markets : Korea, China, Japan, India, Southeast Asia

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, and etc.

▲ Ensham, Australia

WHAT WE DO

▲ PT.GAM, Indonesia

TRADING VOLUME 2014~2020

(Unit: million tons)

2020 (E) 2014 2015 2016 2017 2018

14

7 8

9

11 12

(Unit: million tons)

Ensham

PT.MPP

Wantugou

Total

PT.GAM

ASSET

Rain(Insani)

COUNTRY

Australia

Indonesia

China

-

Indonesia

Indonesia

ANNUAL PRODUCTION

5

2

4

19

7

1

SHARE RATIO(%)

15

75

30

-

60

5

COMMENCEMENT

1983

2007

2008

-

2012

2019

PHASE

Production

Production

Production

-

Production

Production

MINABLE RESERVES

150

-

130

580

210

90


RESOURCES BUSINESS

KEY ASSETS

▲ Tianjin Steel Processing Plant, China


RESOURCES BUSINESS

STEEL PROCESSING PLANT OPERATION

- Location : China (Tianjin, Guangzhou), Vietnam, India and Poland

NON-FERROUS METAL INVESTMENT

PROVIDING CUSTOMIZED SERVICE BY INVESTING IN STEEL PROCESSING PLANTS 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 plants to provide better service for customers

WHAT WE DO

Tianjin

Guangzhou

Haiphong

POSCO-PWPC

POSCO-IPPC

▲ Guangzhou Steel Processing Plant, China

Tianjin Steel Processing Plant

Guangzhou Steel Processing Plant

POSCO-IPPC

POSCO-PWPC

COUNTRY

China

China

India

Poland

Vietnam

ANNUAL PRODUCTION

110 KMT

80 KMT

380 KMT

80 KMT

60 KMT Haiphong Steel Processing Plant

ASSET


RESOURCES BUSINESS

KEY ASSETS

▲ LNG Project, Qatar


RESOURCES BUSINESS

OIL&GAS UpStream/ MidStream – INVEST / DEVELOP

- Targeted regions : Middle East, Southeast Asia, North America , and etc.

- Focused on development / production stage with Strategic Partner

SEEKING FOR INVESTMENT OPPORTUNITIES IN TARGETED REGIONS BASED ON TECHNICAL CAPABILITIES

Stretching further into targeted regions through strategic partnership with companies having regional

expertise

WHAT WE DO

▲ Block 11-2, Vietnam

COUNTRY

Vietnam

Kazakhstan

Qatar

STATUS

Production

Production

Production

Block 11-2

ADA

LNG Project

ASSET

ADA

LNG Project

Block 11-2


RESOURCES BUSINESS

KEY ASSETS

CHEMICALS

PROJECT

AUTOMOTIVE

I T

Coal-to-Chemical Plant, China Wuwei Thermal Power Plant in Gansu, China

Petrochemical Plant in Kiyanly, Turkmenistan


▲ Coal-to-Chemical Plant, China

CHEMICALS PROJECT IT AUTOMOTIVE


SECURE PRODUCT SALES RIGHT THROUGH DEVELOPMENT AND INVESTMENT IN CHEMICAL PLANTS

- Fertilizers (Urea, Sulfur, and etc.) PE, PP, and etc.

CHEMICALS & PETROCHEMICALS TRADING

- Methanol, MTBE, Refrigerant, PET, Organic / Inorganic chemicals

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

WHAT WE DO

▲ Turkmenistan Petrochemicals, Turkmenistan

ASSET COUNTRY PRODUCTS CAPA

(MT/YEAR) OWNERSHIP PHASE

LG Bohai China PVC 400K 10% Production

Oman PTA Oman PTA 1,100K 30% Development

ASSET COUNTRY PRODUCTS CAPA

(MT/YEAR) OFF-TAKE (MT/YEAR)

PHASE

Oman PE/PP Oman PE/PP 1,500K 150K Construction (contracted)

Turkmenistan Petrochemicals

Turkmenistan PE/PP 470K 235K Production

Oman PP Oman PP 340K 80~90K Production

* Details of the Turkmenistan Petrochemicals Project are still undecided.



Coal-to-Chemical Plant China Urea 940K 29% Production

OFF-TAKE STATUS

KEY ASSETS

PROJECT DEVELOPER IN THE FIELD OF POWER GENERATION

BUSINESS AND INDUSTRIAL INFRA STRUCTURE PROJECT

▲ Hasang Hydroelectric Power Plant, Indonesia



The company takes significant role in developing industrial infrastructures to accelerate industrialization in

each emerging market

PROJECT DEVELOPMENT

EQUITY INVESTMENT

EPC, O&M ORGANIZING

FEEDSTOCK SOURCING

PROJECT FINANCING

WHAT WE DO

▲ Musandam IPP Plant, Oman

Classification INDUSTRIAL INFRASTRUCTURE IPP PROJECT

ASSET CAPA FUEL PRODUCTS OWNERSHIP PHASE

Oman Musandam IPP Plant

120MW Gas/Diesel Power 30% Operation

China Wuwei Thermal Power Plant

700MW Coal Power/Heat 30% Operation

Indonesia Hasang Hydroelectric Power Plant

41MW Water Power 95% Construction

Myanmar Cement Plant

450,000TON/year Coal Cement 51% Production

▪ Infrastructural development in strategic region

▪ Water/Wastewater Treatment Plant ▪ Natural resources related Infrastructure

▪ Southeast Asia

▪ Development of IPP Projects through investment and EPC participation

▪ Gas-Diesel Power Project ▪ Hydro-electric Power Project

▪ Southeast Asia

BUSINESS TYPE

EXAMPLES

STRATEGIC REGION



KEY BUSINESS

KEY ASSETS

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 ELECTRON MATERIALS

INTEGRATED PROCUREMENT AND CUSTOMIZED LOGISTICS OPERATION (Sourcing Suppliers, Purchase, Procurement, Stock, Supply Management)

FINANCING AND RISK MANAGEMENT

WHAT WE DO

▲ Nanjing HUB Warehouse, China

LG Electronics, LG Display, BOE, AUO, Innolux, CSOT, Sharp, Canon, Qualcomm, Nichia, CDOT, Sunny Oppotech, HLDS, HP, Lenovo, DELL,

Apple, Acer, and etc.



VMI APPLICATION SCOPE

MAJOR CLIENTS

*JUST IN TIME

JIT* SCOPE

HUB

CUSTOMS CLEARANCE

PRODUCTION /RELEASE

SHIPPING TRANSIT CARRY-IN STORAGE LINE

WAREHOUSE CARRY-OUT



ENGINEERING

- Engine, Powertrain, Vehicle, Manufacturing

PARTS SUPPLY

- EV powertrain, Engine parts, Powertrain parts, Electric & Stamping parts, Material supply

INTEGRATED SOLUTION PROVIDER TO AUTOMAKER

In cooperation with LG automotive affiliates and leading partners, we provide integrated solutions from

engineering to parts supply including material supply

WHAT WE DO

MATERIAL SUPPLY

VEHICLE ENGINEERING

MANUFACTURING ENGINEERING

ENGINE & POWERTRAIN ENGINEERING EV

POWERTRAIN

PARTS SUPPLY

AFFILIATES WORK SCOPE

LG Electronics EV Powertrain / Infotainment

LG Innotek Motor & Sensor / LED Lighting

LG Chem Automotive Battery

LG Hausys Plastic engine parts / Seat skin

LG Display In-Vehicle Display

ACHIEVEMENTS

India ▪ EV chassis, Engineering & Parts supply

▪ TATA, M&M, Ashok Leyland, ESSEL

China ▪ Engineering & Powertrain parts supply

▪ ChangAn, FAW, JAC, Geely

Russia ▪ Engine development, Engineering & Parts supply

▪ AvtoVAZ, UAZ, ZMZ, GAZ



SOCIAL CONTRIBUTION

FINANCIAL HIGHLIGHTS

GLOBAL NETWORK

‘Bridge of Love’ in Sekadau near the Palm Plantation, Indonesia

APPENDIX

SOCIAL CONTRIBUTION

LG International continually communicates with local communities at home and abroad and participates in diverse

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

In particular, Indonesia and Myanmar, where its operating investment corporations are located, LG International

fosters projects to improve living environments and establish infrastructure for economic development based on

detailed analysis of local cultures and social issues. It further strives to establish shared values with local

communities.

LG International will continue to develop programs that have concrete impacts on local economies, while taking into

account the concerns of these communities.

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 residents

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)

2

3

1

1 1

4

3

1

2

3

4

5

2 1 3

2 2 3

2

4

1

1 Block 11-2 in Vietnam

2 ADA in Kazakhstan

3 LNG project in Qatar

Oil / Gas

Investment Assets (As of June 2019)

21

1 PTA plant in Oman

2 Coal-to-Chemical Plant in China

Chemicals & Project

1 Musandam IPP in Oman

2 Wuwei IPP in China

3 Cement Plant in Myanmar

Power & Infra Project

4 Hasang Hydroelectric Power Plant in Indonesia

1 Tianjin Steel Processing Plant in China

2 Guangzhou Steel Processing Plant in China

3 Haiphong Steel Processing Plant in Vietnam

Metals

4 POSCO-PWPC in Poland

5 POSCO-IPPC in India

3

1 PAM plantation in Indonesia

2 GUM plantation in Indonesia

3 TBSM plantation in Indonesia

Palm

1 MPP mine in Indonesia

2 GAM mine in Indonesia

3 Wantugou mine in China

Coal

4 Ensham mine in Australia

INVESTMENT ASSETS

Singapore

Japan

Europe

Seoul (HQ)

Hong Kong

Shanghai U.S.A.

Moscow

Istanbul Ashgabat

Dubai Muscat

Mumbai

Erdos Beijing

Guangzhou Taipei Shenzhen

Jakarta

Yangon

Bangkok Ho Chi Minh

Subsidiary

Branch

Liaison Office

(As of June 2019)

Head Office and Subsidiaries 7

Branches 15

Liaison Offices 6

GLOBAL NETWORK

BALANCE SHEET (CONSOLIDATED)

(Unit: KRW billion)

ITEMS 2016 2017 2018

ASSETS 5,177.3 4,967.6 5,038.1

CURRENT ASSETS 2,672.0 2,554.2 2,558.4

NON-CURRENT ASSETS 2,505.3 2,413.4 2,479.7

LIABILITIES 3,531.9 3.382.1 3,488.5

CURRENT LIABILITIES 2,098.3 2,130.3 2,167.4

NON-CURRENT LIABILITIES 1,433.6 1,251.8 1,321.2

EQUITY 1,645.4 1,585.5 1,549.5


INCOME STATEMENT (CONSOLIDATED)

(Unit: KRW billion)

ITEMS 2016 2017 2018

SALES 11,966.7 12,827.2 9,988.2

GROSS PROFIT 745.9 750.6 711.1

OPERATING PROFIT 174.1 212.3 165.7

NON-OPERATING PROFIT (40.9) (34.4) (9.1)

PROFIT BERFORE TAX 133.2 177.9 156.6

NET INCOME 84.8 88.2 (36.0)


LG Gwanghwamoon B/D, 58, Saemunan-ro, Jongno-gu, Seoul, 03184, Korea

www.lgicorp.com

82-2-3777-1114

introduction to lg international · these affiliates have global top tier competitiveness in lcd /...

Documents