MIRA INFORM REPORT

 

 

Report Date :

06.08.2013

 

IDENTIFICATION DETAILS

 

Name :

LG INTERNATIONAL CORP

 

 

Registered Office :

LG Twin Tower 20, Yeouido-Dong, Yeongdeungpo-Gu Seoul, 150721

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

26.11.1953

 

 

Legal Form :

Public Subsidiary

 

 

Line of Business :

Subject is engaged in the trading business.

 

 

No. of Employees :

659

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

south korea - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. Korea''s export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

 


Company name and address

 

LG INTERNATIONAL CORP                   

 

LG Twin Tower

20, Yeouido-Dong, Yeongdeungpo-Gu

Seoul, 150721

South Korea

 

 

Tel:

82-2-37771114

Fax:

82-2-37735836

 

www.lgicorp.com

 

Employees:

659

Company Type:

Public Subsidiary

Corporate Family:

212 Companies

Ultimate Parent:

LG Corp

Traded:

Korea Stock Exchange:

001120

Incorporation Date:

26-Nov-1953

Auditor:

Ernst & Young LLP

Financials in:

USD (In Millions)

Fiscal Year End:

31-Dec-2012

Reporting Currency:

South Korean Won

Annual Sales:

11,353.6  1

Net Income:

196.7

Total Assets:

4,648.8  2

Market Value:

1,099.5

 

(19-Jul-2013)

                                         

 

Business Description

 

 

LG INTERNATIONAL CORP. is engaged in the trading business. The Company principally operates in two business divisions: energy and raw materials division, which provides petroleum oils, gases, coals and nonferrous metals, and involves in overseas plant projects, and industrial material division, which engages in the marketing of electric and electronic components, resins, paintings, steels, machineries, as well as helicopters and helicopter parts. The Company operates its businesses within domestic market and in overseas markets. For the three months ended 31 March 2013, LG International Corp revenues decreased 7% to W2.884T. Net income decreased 14% to W57.39B. Revenues reflect Industrial Materials First Department segment decrease of 11% to W2.112T, Asia segment decrease of 22% to W1.555T, Europe segment decrease of 1% to W200.23B. Net income also reflects Industrial Materials First Department segment income decrease of 28% to W14.55B.

 

 

Industry            

 

 

Industry

Electronics Wholesale

ANZSIC 2006:

3494 - Other Electrical and Electronic Goods Wholesaling

ISIC Rev 4:

4659 - Wholesale of other machinery and equipment

NACE Rev 2:

4669 - Wholesale of other machinery and equipment

NAICS 2012:

42361 - Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers

UK SIC 2007:

4669 - Wholesale of other machinery and equipment

US SIC 1987:

5063 - Electrical Apparatus and Equipment Wiring Supplies, and Construction Materials

 

 

Key Executives

 

Name

Title

Jun Ho Cho

Co-President, Director

Seong Huh

Chief Financial Officer, Managing Director

Chi Ho Song

Vice President

Sung Huh

CFO

Junesuk Choo

Director

 

 

Significant Developments   

 

           

Topic

#*

Most Recent Headline

Date

Divestitures

1

LG International Corporation to Sell Entire Shares of GS Retail Co Ltd

1-Nov-2012

Strategic Combinations

1

LG International Corporation to Jointly Establish New Company

13-May-2013

New Business / Unit / Subsidiary

1

LG International Corporation to Establish New Subsidiary

30-Jul-2013

General Products

1

DNO International ASA Announces Operational Update on West Bukha Production with Korea's LG International Corp

6-Sep-2012

Equity Investments

3

LG International Corporation Announces Changes in Shareholding Structure

3-May-2013

 

* number of significant developments within the last 12 months

 

 

News     

 

 

 

Title

Date

LG International to acquire stake in Mongolian coal chemical plant operator
Private Equity Korea (283 Words)

2-Aug-2013

LG Int'l Makes Equity Investment in Chinese Urea Plant
Korea IT Times (198 Words)

31-Jul-2013

LG International to buy into China's urea-producing plant
Yonhap News Agency (76 Words)

31-Jul-2013

Yonhap: LG International To Buy Into China's Urea Producing Plant
World News Connection (275 Words)

31-Jul-2013

LG International Corporation to Establish New Subsidiary
Reuters (50 Words)

31-Jul-2013

S Korean consortium to help Turkmenistan produce high-octane gasoline
Itar-Tass (491 Words)

30-Jul-2013

 

 

Financial Summary

 

As of 31-Mar-2013

Key Ratios

Company

Industry

Current Ratio (MRQ)

1.23

0.56

Quick Ratio (MRQ)

0.88

0.45

Debt to Equity (MRQ)

1.02

1.01

Sales 5 Year Growth

7.74

91.29

Net Profit Margin (TTM) %

1.72

10.30

Return on Assets (TTM) %

4.41

-18.68

Return on Equity (TTM) %

14.43

14.57

 

 

Stock Snapshot

 

Traded: Korea Stock Exchange: 001120

 

As of 19-Jul-2013

   Financials in: KRW

Recent Price

31,900.00

 

EPS

5,734.52

52 Week High

50,300.00

 

Price/Sales

0.10

52 Week Low

29,650.00

 

Dividend Rate

500.00

Avg. Volume (mil)

0.27

 

Price/Earnings

7.62

Market Value (mil)

1,236,444.00

 

Price/Book

0.84

 

 

 

Beta

1.48

 

Price % Change

Rel S&P 500%

4 Week

0.95%

-1.68%

13 Week

-13.08%

-11.44%

52 Week

-8.20%

-10.58%

Year to Date

-34.02%

-29.59%

 

1 - Profit & Loss Item Exchange Rate: USD 1 = KRW 1126.849
2 - Balance Sheet Item Exchange Rate: USD 1 = KRW 1066.4

 

 

Corporate Overview

 

Location
LG Twin Tower
20, Yeouido-Dong, Yeongdeungpo-Gu
Seoul, 150721
Korea, Republic of

 

Tel:

82-2-37771114

Fax:

82-2-37735836

 

www.lgicorp.com

Quote Symbol - Exchange

001120 - Korea Stock Exchange

Sales KRW(mil):

12,793,756.0

Assets KRW(mil):

4,957,522.0

Employees:

659

Fiscal Year End:

31-Dec-2012

 

Industry:

Electronic Instruments and Controls

Incorporation Date:

26-Nov-1953

Company Type:

Public Subsidiary

Quoted Status:

Quoted

 

Co-President, Director:

Jun Ho Cho

 

 

Industry Codes

 

ANZSIC 2006 Codes:

3494

-

Other Electrical and Electronic Goods Wholesaling

3322

-

Metal and Mineral Wholesaling

3321

-

Petroleum Product Wholesaling

3323

-

Industrial and Agricultural Chemical Product Wholesaling

3419

-

Other Specialised Industrial Machinery and Equipment Wholesaling

 

ISIC Rev 4 Codes:

4659

-

Wholesale of other machinery and equipment

4662

-

Wholesale of metals and metal ores

4649

-

Wholesale of other household goods

4652

-

Wholesale of electronic and telecommunications equipment and parts

4661

-

Wholesale of solid, liquid and gaseous fuels and related products

4669

-

Wholesale of waste and scrap and other products n.e.c.

 

NACE Rev 2 Codes:

4669

-

Wholesale of other machinery and equipment

4672

-

Wholesale of metals and metal ores

4643

-

Wholesale of electrical household appliances

4652

-

Wholesale of electronic and telecommunications equipment and parts

4671

-

Wholesale of solid, liquid and gaseous fuels and related products

4675

-

Wholesale of chemical products

 

NAICS 2012 Codes:

42361

-

Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers

423830

-

Industrial Machinery and Equipment Merchant Wholesalers

423510

-

Metal Service Centers and Other Metal Merchant Wholesalers

423520

-

Coal and Other Mineral and Ore Merchant Wholesalers

424610

-

Plastics Materials and Basic Forms and Shapes Merchant Wholesalers

423690

-

Other Electronic Parts and Equipment Merchant Wholesalers

423620

-

Household Appliances, Electric Housewares, and Consumer Electronics Merchant Wholesalers

424720

-

Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)

 

US SIC 1987:

5063

-

Electrical Apparatus and Equipment Wiring Supplies, and Construction Materials

5084

-

Industrial Machinery and Equipment

5052

-

Coal and Other Minerals and Ores

5051

-

Metals Service Centers and Offices

5172

-

Petroleum and Petroleum Products Wholesalers, Except Bulk Stations and Terminals

5064

-

Electrical Appliances, Television and Radio Sets

5065

-

Electronic Parts and Equipment, Not Elsewhere Classified

5162

-

Plastics Materials and Basic Forms and Shapes

 

UK SIC 2007:

4669

-

Wholesale of other machinery and equipment

4672

-

Wholesale of metals and metal ores

4643

-

Wholesale of electrical household appliances

4652

-

Wholesale of electronic and telecommunications equipment and parts

46711

-

Wholesale of petroleum and petroleum products

4675

-

Wholesale of chemical products

 

Business Description

 

LG INTERNATIONAL CORP. is engaged in the trading business. The Company principally operates in two business divisions: energy and raw materials division, which provides petroleum oils, gases, coals and nonferrous metals, and involves in overseas plant projects, and industrial material division, which engages in the marketing of electric and electronic components, resins, paintings, steels, machineries, as well as helicopters and helicopter parts. The Company operates its businesses within domestic market and in overseas markets. For the three months ended 31 March 2013, LG International Corp revenues decreased 7% to W2.884T. Net income decreased 14% to W57.39B. Revenues reflect Industrial Materials First Department segment decrease of 11% to W2.112T, Asia segment decrease of 22% to W1.555T, Europe segment decrease of 1% to W200.23B. Net income also reflects Industrial Materials First Department segment income decrease of 28% to W14.55B.

More Business Descriptions

Engaged in trade and the export and import of goods, operates in four divisions: energy and raw materials; provision of petroleum oils gases and coal; industrial materials and overseas plant and the marketing of heavy electrical equipment and helicopter parts

International Trade

LG International Corp. (LGI) is a Korea-based is resource development and business trading company. It is a part of the LG Group and provides diversified services worldwide. The company provides services and business trading solutions across the world. Its key business fields include Crude Oil, Coal, Project Business, IT and Machinery, Petrochemicals and New Business Development. It’s business is divided into three segments, namely, Specialized trading of commodities, industrial goods, industrial materials; Import and distribution of Information technology (IT) products, consumer retail goods, as well as auto and aviation products; Resource Development segment which carries out construction of industrial and power plants, besides oil exploration projects. The trading segment conducts the trading of commodities and industrial goods such as petroleum, natural gas, crude oil, coals, steels, synthetic resins, basic emulsion and other chemicals. It also has investments in a coil center in India. Its major petrochemical products includes PX, VCM, PP, PET The Import and Distribution segment deals with the import and distribution of products such as helicopters, elevators, commercial cars and information technology (IT) products. The IT products that it imports include consumer electronics, as well as computer, telecommunication, electronic components, and network products that include digital cameras, mobile related components and displays such as LCD displays. It provides Russian helicopters to major customers such as the Department of Forestry and the National Police Agency. It operates a maintenance center for Cheongju Airport, which has imported 80 helicopters. It also provides IVECO commercial cars, cameras, MP3, Mac book dictionaries and camera adviser systems through its Pixdix Shops. It opened 14 retail stores recently. The Resource Development segment provides various services through two divisions, namely, Oil and Gas, and Coal. Under oil and gas, the company conducts the exploration projects; and the coal division has equity investment in production fields. It products list consists of non-ferrous metals such as aluminum, coal and basic raw materials, copper, and tin. The company conducts the construction of industrial and power plants that include heavy equipment plants and petroleum refinery power plants. The company has operation in North America, Central & South America, Europe & Central Asia, Asia, Middle East& Africa, Oceania. In December 2012, the company acquired 20% interest in GeoPark Colombia S.A., a company that holds interest in 10 hydrocarbon blocks in Colombia, from GeoPark Holdings Limited, an oil and gas company, for a purchase consideration of $20.1m in cash. In June 2012, LG International Corporation declared that it would acquire 60% of the total share of PT. Ganda Alam Makmur which conducts the coal development to secure mine operating capability. The transaction was worth KRW242838.68m. In May 2012, the consortium formed by LG International and Hyundai Engineering won an refinery plant deal in Turkmenistan. State-run refinery company, Turkmenbashi Complex of Oil Refineries wanted to replace outmoded facilities and the new one will produce a high-octane rating gasoline using the naphtha process. In April 2012, LG International signed an MOU for a joint venture on coal chemicals with the Chinese energy specialist group, Boyuan. Under this project, coal chemical plants will be constructed in Inner Mongolia to produce coal-based chemical products. Through this LG Internation wanted to increase its business in inner Mongolia,China.

LG International Corp. (LG International) is a publicly traded Korean company. It conducts trading business and provides petroleum, natural gas, crude oil, coal, steels, nonferrous metals, mobile and display devices, security gates, automobile components, display components, electronic components and electronic equipment, helicopters and commercial cars, and transportation services. The company operates under three business divisions, namely, Energy and Metal Division, Industrial Material Division and Import and Distribution Division. LG International operates subsidiaries and representative offices across North America, Central & South America, Europe & Central Asia, Asia, Middle East& Africa, Oceania. It is headquartered in Seoul, South Korea.The company's strategy is to expand its resource development business as much as possible and generate strong source of revenue. In line with the strategy, the company recently signed an MOU for a joint venture on coal chemicals with the Chinese energy specialist group, Boyuan to produce coal-based chemical products.The company reported revenues of (Won) KRW 12,793,756.15 million during the fiscal year ended December 2012, a decrease of 8.53% from 2011. The operating profit of the company was KRW 205,487.04 million during the fiscal year 2012, an increase of 26.43% over 2011. The net profit of the company was KRW 221,692.29 million during the fiscal year 2012, a decrease of 10.53% from 2011.

In 1953, LG International Corporation started off as Lucky Industry, and has since been involved in exporting and importing activities for Korea's major industries, leading the way for the country's significant economic development. LGI is a total trading company, acquiring and supplying resources essential for industrial growth and enhanced life quality, as well as a wide range of raw materials. In 1992 the company participated in the 11-2 block project in Vietnam, and completed the construction of gas field and production facilities. In 2006 it began the production of gas, and is now carrying out drilling work for full-scale production, and will continue drilling more exploration wells in order to discover additional deposits. In 1999 LGI and other six Korean companies together participated in the RasLaffan LNG project in Qatar. The company's metals division consists of nonferrous metals and steel, and involves dealing with the basic raw materials, namely, steel and nonferrous metals, of industrial raw materials.

 

 

Financial Data

 

Financials in:

KRW(mil)

 

Revenue:

12,793,756.0

Net Income:

221,692.3

Assets:

4,957,522.0

Long Term Debt:

814,051.9

 

Total Liabilities:

3,488,738.8

 

Working Capital:

512.3

 

 

 

Date of Financial Data:

31-Dec-2012

 

1 Year Growth

-8.5%

-10.5%

0.3%

 

 

Market Data

 

Quote Symbol:

001120

Exchange:

Korea Stock Exchange

Currency:

KRW

Stock Price:

31,900.0

Stock Price Date:

07-19-2013

52 Week Price Change %:

-8.2

Market Value (mil):

1,236,444,032.0

 

SEDOL:

6537115

ISIN:

KR7001120005

 

Equity and Dept Distribution:

'97-'06, financials are consolidated. 12/2006, 0.57-for-1 Complex capital change (Factor: 1.893606). FY'10 Q1 is CCA. FY'11 Q1 is CCA.

\\VIVEK\Raw Foreign Reports\LG International Corp.htm - _Top91849

 

 

Subsidiaries

 

Company

Percentage Owned

Country

LG International SA

 

SOUTH AFRICA

LG International (Deutschland) GmbH

100%

GERMANY

LG International (America) Inc

100%

USA

LG International Do Brasil LTDA

 

BRAZIL

LG International Japan Ltd

100%

JAPAN

LG International (HK) Limited

100%

HONG KONG SAR

LG International (Singapore) Pte Ltd

100%

SINGAPORE

LG International (China) Corp

100%

PEOPLE'S REPUBLIC OF CHINA

 

 

Key Corporate Relationships

 

Auditor:

Ernst & Young LLP

 

Auditor:

Ernst & Young, Ernst & Young LLP

 

 

 

 

 

The Strategic Initiatives report is created using technology to extract meaningful insights from analyst reports about a company's strategic projects and investments. More about Strategic Initiatives

 

Strategic Initiatives

 

 

Key Organizational Changes

This increase resulted from a growth in Chilean oil production (from 3,723bopd–3,879bopd) and new production from Colombian assets acquired (4,018bopd). Oil production accounted for 75% of the total oil and gas production compared to 43% in the fourth quarter of 2011. Relevant market announcements and strategic developments • New project efforts LGI joined GeoPark Holdings's operations in Colombia through the acquisition of a 20% interest in GeoPark Colombia S.A. GeoPark Holdings and LGI agreed to extend until 2015 their strategic alliance to build a portfolio of upstream oil and gas projects throughout Latin America. Following its successful acquisitions in Chile and Colombia in 2012, GeoPark Holdings continues to actively review a range of asset and corporate opportunities, from a risk-reward and shareholder value creation perspective, in Chile, Colombia, Peru, Brazil and Argentina. • Gas market Methanex Corporation, which purchases all of GeoPark Holdings's Chilean gas production, announced it expects to idle its Chile operation in March 2013 and restart it later in the present year due to anticipated insufficient natural gas supply.

 

Planning

 

Moreover, the global IT market is expected to expand nearly 30% over the next few years. The demand for green IT services, which could enable companies to improve their cost efficiencies, is projected to reach about $4.8 billion by 2013. Thus, the company could capitalize on the growing global IT services market, which could enhance its revenue and strengthen its market position.Strategic InititativesThe company expanded its existing operational activities with diverse strategic initiatives. In May 2013, the company established a new company to secure stable profit basis. The new entity will carry out the manufacture and sale of petrolchemical products.
 

 

 

Strengths/Weaknesses (SWOT)

 

 

Helpful
to achieving the objective

Harmful
to achieving the objective

Internal Origin
(attributes of the organization)

Strengths

·        Strong liquidity

·        Improved Operating Performance

·        Diversified Portfolio

Weaknesses

·        Legal Proceedings

External Origin
(attributes of the environment)

Opportunities

·        Strategic Inititatives

·        Growing Demand for Petrochemicals

·        Global Outlook for IT Services Market

Threats

·        Fragility of Network and Collocation Services

·        Political Environment

·        Rapid Technological Changes

 

 

Overview

 

LG International Corp. (LGI) carries out the trading in commodities, information technology products and services, consumer products and industrial products. The company has a strong brand image in the global market and operates business through diverse business verticals, in spite of pending legal proceedings. Though the company has risks associated with technology changes, the growing IT services market and its strategic acquisitions ensure top line growth.

 

 

Strengths

 

Strong liquidity

 

Strong liquidity helps the company in meeting its working capital requirements effectively. The company reported an increase in all the liquidity ratios owing to decreased current liabilities, which declined from KRW2,801,638.26m in 2011 to KRW2,423,238.52m in 2012. For the fiscal year ended 2012, the company reported current ratio of 1.21 times as against 1.11 times in 2011, followed by quick ratio of 0.91 times as against 0.84 times, and cash ratio of 0.31 times in 2012 as against 0.195 times in 2011. Growth in current ratio indicates that the company is in a strong position to meet its short-term obligations. The company also reported an increase in its cash and cash equivalents in the fiscal 2012. The company had KRW534,260.4m in cash and cash equivalents as of December 2012, as compared to cash and cash equivalents of KRW390,666.05m in 2011, reflecting an increase of 36.8%. The increase in cash reserves was principally due to strong cash flows from operating activities. Increasing cash reserves indicate the company’s ability to obtain additional debt to finance acquisitions, capture business opportunities and meet capital expenditure or other capital requirements in the future.

 

Improved Operating Performance

 

The company exhibited a strong growth in its operating performance for the fiscal year ended December 2012. The company's operating income increased to KRW205,487.04m in 2012, representing an increase of 26.4% over the previous year. The company also reported a decline in operating expenses as a percetage of sales. For the fiscal year ended 2012, the operating expenses as a percetage of sales was 98.39%, as compared to 98.83% in the previous fiscal. The company also showed an improvement in its operating margin. For the fiscal year ended December 2012, the company's operating margin was 1.6% as compared to 1.16% in 2011. The increase in operating margin indicates that the company's revenue increased at a higher rate than that of its expenses. Thus, the company’s strong operational performance increases the investor’s confidence and provides a positive outlook for the future.

 

Diversified Portfolio

 

The diversified business operations provides edge to the company over its competitors. It conducts trading business and provides petroleum, natural gas, crude oil, coal, steels, nonferrous metals, mobile and display devices, security gates, automobile components, display components, electronic components and electronic equipment, helicopters and commercial cars, and transportation services. The company carries out the trading business with several products in various sectors, resource development and import distribution. The company generates revenue from all the sectors in which it operates. LGI trades in commodities such as metals and coal, petrochemicals, industry products and IT products. The industrial products include aviation and machinery. The company’s IT products include digital equipment and optical equipment such as camera accessories, digital cameras and memory cards. The company also provides display products such as LCD, PDP TVs, LCD panels, electron guns and shadow masks.

 

 

Weaknesses

 

Legal Proceedings

 

The company's involvement in legal proceedings, regardless of the outcome, could drain its financial resources. The company is involved in several legal proceedings related to its ordinary course of business. The company's involvement in such claims not only black-lists its reputation, but also result in additional costs and valuable time for the company in defending them. In September 2012, the company previously sued Samsung Display due to allegedly violating seven patents related to organic light-emitting diode (OLED) technology. The claims referred to Samsung's Galaxy S3 and Galaxy Note. In November 2012, Samsung responded by suing LG because its patents lack innovation, stating that they should consequently be invalidated by Korea's intellectual property tribunal. In February 2013, the company and Samsung called off their patent lawsuits in favor of resolving disputes through dialogue as opposed to court proceedings.

 

 

Opportunities

 

Strategic Inititatives

The company expanded its existing operational activities with diverse strategic initiatives. In May 2013, the company established a new company to secure stable profit basis. The new entity will carry out the manufacture and sale of petrolchemical products. In the same month, Shinhan BNP Paribas ITMC Co.,Ltd. acquired 1,948,853 shares of the company, representing a 5.03% stake. In December 2012, the company acquired 20% interest in GeoPark Colombia S.A., a company that holds interest in 10 hydrocarbon blocks in Colombia, from GeoPark Holdings Limited, an oil and gas company, for a purchase consideration of $20.1m in cash. In June 2012, LG International Corporation declared that it would acquire 60% of the total share of PT. Ganda Alam Makmur which conducts the coal development to secure mine operating capability. The transaction was worth KRW242838.68m. In May 2012, the consortium formed by LG International and Hyundai Engineering won an refinery plant deal in Turkmenistan. In April 2012, LG International signed an MOU for a joint venture on coal chemicals with the Chinese energy specialist group, Boyuan. Under this project, coal chemical plants will be constructed in Inner Mongolia to produce coal-based chemical products. Through this LG International aims to increase its business in inner Mongolia, China.

 

Growing Demand for Petrochemicals

 

The company could be benefited from the potential global petrochemicals market. According to the in-house research reports, the global petrochemicals industry was valued at $733.4 billion, and it is expected to grow at a rate of 8.8% to reach $1699 billion by 2020. Such growth in petrochemical sector is expected to be driven by Asia Pacific, and Middle East and Africa regions. Petrochemicals demand in Middle East and Africa is expected to grow at a rate of 11.2% from 2010 through 2012. Asia Pacific’s petrochemicals market is expected to register CAGR of 10.2% during 2010-2020 to reach $1070 billion. Such a strong outlook of the petrochemical industry could help the company to expand its geographic operations and explore untapped markets to bolster top-line growth.

 

Global Outlook for IT Services Market

 

LG International could benefit from the positive long-term outlook for IT services market. According to industry estimates, expenditure on IT services is expected to rebound by 2013. Demand for IT services is likely increase with growth in financial services, healthcare, communications and media. The worldwide IT spending was reported to be $3.58 trillion in 2012, and is expected to reach 3.71 trillion by 2013. According to in-house research, it is estimated that worldwide technical services market will grow at a compound annual growth rate (CAGR) of 5.04% from 2011 to 2015, with outsourcing companies driving the major growth. Moreover, the global IT market is expected to expand nearly 30% over the next few years. The demand for green IT services, which could enable companies to improve their cost efficiencies, is projected to reach about $4.8 billion by 2013. Thus, the company could capitalize on the growing global IT services market, which could enhance its revenue and strengthen its market position.

 

 

Threats

 

Fragility of Network and Collocation Services

 

The company’s success depends on its ability to provide high quality and reliable products and services. Any cause of human error, natural disaster, extreme temperature or other unanticipated problems could affect the ability of its provision of services to the customers. Any problems in analyzing and applying data could interrupt the services. The services are also prone to unauthorized access, computer viruses, and other disruptive problems caused by customers, employees, and others. Resolving network failures and security problems could also cause interruptions, failure or delay in the services. All these causes of interruption could result in loss of customers, damaging the company’s image in the market.

 

Political Environment

The company operates its business in Korea. The Korean political environment is becoming uncertain each year. The political relations between North Korea and South Korea are adverse. The level of strain in their relations increased year-on- year. The increase in tension causes break-down in contacts and leads to an outbreak in military hostilities. The company exports all of its products. Hence, any increase in the strain in relations between the two countries can influence the company’s financial position and operations.

 

Rapid Technological Changes

 

The company's offerings are characterized by rapid technological changes, which may affect its business operations. To compete effectively with its peers, the company should continually introduce new products that exceed the customers’ requirements. The introduction of products using new technologies or the adoption of new industry standards can make existing products, or products under development, obsolete or unmarketable. Inability to study the evolving technological landscape may impact the company’s competitive position.

 

 

Corporate Family      

 

Corporate Structure News:

Total Corporate Family Members: 212
           

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

LG Corp

Parent

Seoul

Korea, Republic of

Audio and Video Equipment Manufacturing

8,720.9

101

LG Electronics Inc.

Affiliates

Seoul

Korea, Republic of

Audio and Video Equipment Manufacturing

45,223.4

38,472

Asset/product line purchase proposed/announced.See corporate structure news on LG Corp for details

LG Display Co Ltd

Affiliates

Seoul

Korea, Republic of

Semiconductor and Other Electronic Component Manufacturing

26,116.8

34,714

Lg Display (Nanjing) Co., Ltd.

Subsidiary

Nanjing, Jiangsu

China

Semiconductor and Other Electronic Component Manufacturing

410.1

10,000

Suzhou Raken Technology Co., Ltd.

Subsidiary

Suzhou, Jiangsu

China

Semiconductor and Other Electronic Component Manufacturing

1,529.8

3,800

L&T Display Technology (Xiamen) Ltd.

Subsidiary

Xiamen, Fujian

China

Semiconductor and Other Electronic Component Manufacturing

546.0

2,000

Lg Display Poland Sp Z O O

Subsidiary

Biskupice Podgorne

Poland

Semiconductor and Other Electronic Component Manufacturing

87.8

2,000

Lg Display (Shanghai) Co., Ltd.

Subsidiary

Shanghai, Shanghai

China

Electronics Wholesale

 

85

Lg Display Singapore Pte. Ltd.

Subsidiary

Singapore

Singapore

Electronics Wholesale

1,381.3

28

LG Display Taiwan Co., Ltd.

Subsidiary

Taipei

Taiwan

Electronics Wholesale

 

 

LG Display Shenzhen Co., Ltd

Subsidiary

Shenzhen

China

Professional and Commercial Equipment Wholesale

 

 

LG Display Japan Co., Ltd

Subsidiary

Tokyo

Japan

Semiconductor and Other Electronic Component Manufacturing

 

 

LG Display Shanghai Co., Ltd.

Subsidiary

Shanghai

China

Professional and Commercial Equipment Wholesale

 

 

LG Display Yantai Co., Ltd.

Subsidiary

Yantai

China

Electrical Equipment and Appliances Manufacturing

 

 

LG Innotek Co., Ltd.

Subsidiary

Seoul

Korea, Republic of

Semiconductor and Other Electronic Component Manufacturing

4,717.5

9,426

Lg Innotek Indonesia, Pt

Subsidiary

Bekasi, West Java

Indonesia

Semiconductor and Other Electronic Component Manufacturing

170.0

2,700

Lg Innotek (Fuzhou) Co., Ltd.

Subsidiary

Fuzhou, Fujian

China

Semiconductor and Other Electronic Component Manufacturing

33.6

600

Lg Innotek Poland Sp Z O O

Subsidiary

Biskupice Podgorne

Poland

Non-Metallic Mineral Product Manufacturing

49.5

500

Lg Innotek (Taiwan) Co., Ltd.

Subsidiary

Taipei City, Taipei

Taiwan

Electronics Wholesale

 

16

Lg Innotek Co. Ltd.

Branch

Frankfurt Am Main, Hessen

Germany

Research and Development Services

 

3

Lg Innotek Co., Ltd.

Branch

Minato-Ku, Tokyo

Japan

Electronics Wholesale

 

 

Lg Innotek Co., Ltd., Lg Innotek Co., Ltd._Ansan R&D Center

Branch

Ansan, Kyonggi-Do

Korea, Republic of

Nonclassifiable Establishments

 

 

LG Uplus

Subsidiary

Seoul

Korea, Republic of

Wireless Telecommunications Carriers

9,677.1

6,560

Medialog Corp.

Subsidiary

Seoul, Seoul

Korea, Republic of

Internet and Web Services

53.5

167

Dacom Crossing Corporation

Subsidiary

Seoul, Seoul

Korea, Republic of

Wireless Telecommunications Carriers

14.7

 

Partes De Televisión De Reynosa, S.A. De C.V.

Subsidiary

Reynosa, Tamaulipas

Mexico

Audio and Video Equipment Manufacturing

 

5,000

Taizhou Lg Electronics Refrigeration Co., Ltd.

Subsidiary

Taizhou, Jiangsu

China

Electrical Equipment and Appliances Manufacturing

622.3

3,500

LG Electronics India Pvt. Ltd

Subsidiary

Noida, Uttar Pradesh

India

Electrical Equipment and Appliances Manufacturing

 

3,000

Lg Electronics India Private Limited

Subsidiary

New Delhi,

India

Nonclassifiable Establishments

 

 

LG Electronics Mlawa Sp. z.o.o.

Subsidiary

Mlawa

Poland

Audio and Video Equipment Manufacturing

1,330.2

2,497

LG Electronics da Amazonia Ltda.

Subsidiary

São Paulo, SP

Brazil

Audio and Video Equipment Manufacturing

2,197.1

2,280

Hiplaza Co., Ltd.

Subsidiary

Seoul

Korea, Republic of

Electronics and Appliances Stores

1,004.6

2,130

LG Electronics Thailand Co Ltd

Subsidiary

Bangkok

Thailand

Audio and Video Equipment Manufacturing

781.7

2,000

LG Electronics Wroclaw Sp. z.o.o.

Subsidiary

Kobierzyce

Poland

Electrical Equipment and Appliances Manufacturing

1,504.4

1,593

Qingdao Lg Inspur Digital Communication Co., Ltd.

Subsidiary

Qingdao, Shandong

China

Communications Equipment Manufacturing

995.8

1,500

Lg Electronics (Shenyang) Inc.

Subsidiary

Shenyang, Liaoning

China

Audio and Video Equipment Manufacturing

258.2

650

Hi-M Solutek Co., Ltd.

Subsidiary

Seoul, Seoul

Korea, Republic of

Consumer Electronics Repair and Maintenance

 

557

Lg Electronics Egypt Sae

Subsidiary

Cairo

Egypt

Semiconductor and Other Electronic Component Manufacturing

 

500

Lg Electronics España Sa

Subsidiary

Las Rozas De Madrid, Madrid

Spain

Electronics Wholesale

827.7

467

LG Electronics Pty Limited

Subsidiary

Eastern Creek, NSW

Australia

Electronics Wholesale

758.4

435

Hi Business Logistics Co., Ltd.

Subsidiary

Seoul

Korea, Republic of

Trucking

296.3

425

Hi Logistics Europe B.V.

Subsidiary

Oosterhout Nb, Noord-Brabant

Netherlands

Data Processing

55.9

319

LG Electronics (Hangzhou) Recording Media Co., Ltd

Subsidiary

Hangzhou

China

Electrical Equipment and Appliances Manufacturing

 

400

Lg Electronics Wales Ltd

Subsidiary

Cardiff

United Kingdom

Electrical Equipment and Appliances Manufacturing

 

395

LG Electronics Phillipines, Inc

Subsidiary

Pasig

Philippines

Industrial Machinery Repair and Maintenance

 

300

LG Mitr Electronics Co., Ltd.

Subsidiary

Bangkok, Chachangsao

Thailand

Audio and Video Equipment Manufacturing

 

300

Lg Electronics U.K. Ltd

Subsidiary

Slough

United Kingdom

Miscellaneous Wholesale

610.9

293

Lg Electronics U.K. Limited

Subsidiary

Rathcoole

Ireland

Electronics Wholesale

1,076.1

267

LG Electronics U.S.A., Inc.

Subsidiary

Englewood Cliffs, NJ

United States

Computer, Office Equipment and Software Merchant Wholesalers

212.0

200

Lg Electronics Reynosa, S.A. De C.V.

Subsidiary

Reynosa, Tamaulipas

Mexico

Communications Equipment Manufacturing

2,402.8

1,800

LG InfoComm U.S.A., Inc.

Subsidiary

San Diego, CA

United States

Electronics Wholesale

 

500

LG Electronics Alabama, Inc.

Subsidiary

Huntsville, AL

United States

Audio and Video Equipment Manufacturing

224.0

400

Lg Electronics Mobile Communication USA

Subsidiary

San Diego, CA

United States

Semiconductor and Other Electronic Component Manufacturing

 

230

Lg Electronics Mobile Communication USA

Branch

Shawnee Mission, KS

United States

Semiconductor and Other Electronic Component Manufacturing

6.6

19

Lg Electronics Mobile Communication USA

Branch

Bellevue, WA

United States

Semiconductor and Other Electronic Component Manufacturing

4.3

13

LG Electronics

Branch

Houston, TX

United States

Semiconductor and Other Electronic Component Manufacturing

10.7

20

LG Electronics

Branch

Troy, MI

United States

Semiconductor and Other Electronic Component Manufacturing

6.5

20

LG Electronics

Branch

Hoffman Estates, IL

United States

Semiconductor and Other Electronic Component Manufacturing

6.2

20

LG Electronics

Branch

Alpharetta, GA

United States

Semiconductor and Other Electronic Component Manufacturing

5.6

20

LG Electronics

Branch

Doral, FL

United States

Semiconductor and Other Electronic Component Manufacturing

3.3

14

LG Electronics

Branch

Romeoville, IL

United States

Semiconductor and Other Electronic Component Manufacturing

3.4

11

LG Electronics

Branch

Englewood Cliffs, NJ

United States

Semiconductor and Other Electronic Component Manufacturing

3.3

11

LG Electronics

Branch

Morristown, NJ

United States

Semiconductor and Other Electronic Component Manufacturing

3.3

11

LG Electronics

Branch

Rancho Cucamonga, CA

United States

Semiconductor and Other Electronic Component Manufacturing

3.0

11

LG Electronics

Branch

Pagosa Springs, CO

United States

Semiconductor and Other Electronic Component Manufacturing

3.0

11

LG Electronics

Branch

Rogers, AR

United States

Semiconductor and Other Electronic Component Manufacturing

2.9

11

LG Electronics

Branch

Doral, FL

United States

Semiconductor and Other Electronic Component Manufacturing

2.6

11

LG Electronics

Branch

San Jose, CA

United States

Semiconductor and Other Electronic Component Manufacturing

2.2

8

LG Electronics

Branch

Lutz, FL

United States

Semiconductor and Other Electronic Component Manufacturing

1.4

6

LG Electronics

Branch

Englewood Cliffs, NJ

United States

Semiconductor and Other Electronic Component Manufacturing

0.6

2

LG Electronics

Branch

Mission, TX

United States

Semiconductor and Other Electronic Component Manufacturing

0.5

1

Lg Electronics Mexicali, S.A. De C.V.

Subsidiary

Mexicali, Baja California

Mexico

Computer and Peripheral Equipment Manufacturing

21.1

 

Lg Electronics (China) Research & Development Center Co., Ltd.

Subsidiary

Beijing, Beijing

China

Research and Development Services

10.0

200

Hientech Co., Ltd.

Subsidiary

Buchon, Kyonggi-Do

Korea, Republic of

Miscellaneous Store Retailers

 

190

LG Electronics Canada, Inc.

Subsidiary

Mississauga, ON

Canada

Commercial and Industrial Rental

395.0

180

LG Electronics (M) Sdn Bhd

Subsidiary

Petaling Jaya, Selangor

Malaysia

Electronics Wholesale

150.5

180

LG Electronics Nordic AB

Subsidiary

Kista

Sweden

Electronics Wholesale

316.4

177

Zenith Electronics Corp.

Subsidiary

Lincolnshire, IL

United States

Audio and Video Equipment Manufacturing

195.6

160

LG Electronics, Panama S.A.

Subsidiary

Panama

Panama

Industrial Machinery Repair and Maintenance

 

158

LG Electronics Singapore Pte Ltd

Subsidiary

Singapore

Singapore

Electronics Wholesale

220.0

150

LG Electronics Magyar Kereskedelmi Kft

Subsidiary

Budapest

Hungary

Electronics Wholesale

269.0

128

LG Electronics Morocco SARL

Subsidiary

Casablanca

Morocco

Electronics Wholesale

 

120

LG Electronics Gulf FZE

Subsidiary

Dubai

United Arab Emirates

Electronics Wholesale

 

100

LG Electronics CZ, s.r.o.

Subsidiary

Prague

Czech Republic

Electronics Wholesale

 

100

LG Electronics Mobilecomm France SAS

Subsidiary

Villepinte

France

Computer Programming

26.4

74

LG Electronics Latvia, LLC

Subsidiary

Riga

Latvia

Electrical Equipment and Appliances Manufacturing

 

70

LG Electronics, Inc. Poland

Subsidiary

Warsaw

Poland

Industrial Machinery Repair and Maintenance

 

70

LG Electronics Japan

Subsidiary

Tokyo

Japan

Audio and Video Equipment Manufacturing

 

67

LG Electronics Venezuela S.A.

Subsidiary

Caracas

Venezuela

Electrical Equipment and Appliances Manufacturing

 

60

Ace R&D Co., Ltd.

Subsidiary

Hwasong, Kyonggi-Do

Korea, Republic of

Motor Vehicle Parts Manufacturing

 

36

LG Electronics HK Ltd.

Subsidiary

North Point

Hong Kong

Electronics Wholesale

 

30

Lb Investment Inc.

Subsidiary

Seoul, Seoul

Korea, Republic of

Securities

15.6

27

Lg Electronics Africa Logistics Fze

Subsidiary

Dubai

United Arab Emirates

Electronics Wholesale

 

16

Lg Electronics Norway AS

Subsidiary

Oslo, Oslo

Norway

Miscellaneous Wholesale

7.4

7

LG Electronics Rus

Subsidiary

Ruzskiy Rayon, Moskovskaya Oblast

Russian Federation

Computer and Peripheral Equipment Manufacturing

2,270.6

 

Lg Electronics Rus Ooo

Subsidiary

Dorokhovo Pos.

Russian Federation

Electrical Equipment and Appliances Manufacturing

2,270.6

 

Lg Electronics Rus Ooo

Branch

Moscow

Russian Federation

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics de São Paulo Ltda.

Subsidiary

São Paulo, SP

Brazil

Audio and Video Equipment Manufacturing

1,413.0

 

LG Electronics Colombia Ltda

Subsidiary

Cota, Cundinamarca

Colombia

Electronics Wholesale

615.7

 

Lg Hitachi Ltd.

Joint Venture

Seoul, Seoul

Korea, Republic of

Electronics and Appliances Stores

62.2

 

Lg Electronics European Holding B.V.

Subsidiary

Amstelveen, Noord-Holland

Netherlands

Computer, Office Equipment and Software Merchant Wholesalers

 

 

LG Electronics Deutschland GmbH

Subsidiary

Ratingen, Nordrhein-Westfalen

Germany

Electronics and Appliances Stores

1,059.5

320

LG Electronics France SARL

Subsidiary

Roissy CDG

France

Electronics Wholesale

1,056.5

374

LG Electronics Italia S.p.A

Subsidiary

San Donato Milanese, Milan

Italy

Electronics Wholesale

657.7

250

LG Electronics Portugal SA

Subsidiary

Paço de Arcos, Lisboa

Portugal

Electronics Wholesale

175.2

116

Lg Electronics Romania Srl

Subsidiary

Bucuresti

Romania

Electronics Wholesale

45.8

59

LG Soft India Private Limited

Subsidiary

Bangalore, Karnataka

India

Computer Programming

 

 

Lg Soft India Private Ltd.

Subsidiary

 

 

 

 

 

LG Electronics Taiwan Taipei Co., Ltd

Subsidiary

Taipei

Taiwan

Electronics Wholesale

 

 

P.T. LG Electronics Indonesia

Subsidiary

Jakarta

Indonesia

Electronics Wholesale

 

 

Lg Electronics Inc. Chile Limitada

Subsidiary

Santiago, Santiago

Chile

Electronics Wholesale

 

 

LG Electronics Egypt S.A.E.

Subsidiary

Cairo

Egypt

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics SA (Pty) Ltd

Subsidiary

Elandsfontein

South Africa

Electronics Wholesale

 

 

LG Electronics Peru S.A.

Subsidiary

Lima

Peru

Electronics Wholesale

 

 

LG Electronics Ukraine Inc

Subsidiary

Kiev

Ukraine

Electrical Equipment and Appliances Manufacturing

 

 

Inspur Lg Digital Mobile Communications Co., Ltd.

Subsidiary

Yantai, Shandong

China

Communications Equipment Manufacturing

 

 

LG Electronics (Kunshan) Computer Co., Ltd

Subsidiary

Kunshan, Jiangsu

China

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics Qinhuangdao Inc

Subsidiary

Qinhuangdao

China

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics Hellas S.A.

Subsidiary

Athens

Greece

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics Monterrey Mexico S.A. de C.V.

Subsidiary

Apodaca, Nuevo Leon

Mexico

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics JIT Europe B.V

Subsidiary

Almere

Netherlands

Consulting Services

 

 

Lg Electronics Chile

Subsidiary

Las Condes, Santiago

Chile

Software

 

 

LG Micron (Fujian) Electronics Co., Ltd

Subsidiary

Fuzhou

China

Semiconductor and Other Electronic Component Manufacturing

 

 

LG Electronics Ticaret A.S.

Subsidiary

Istanbul

Turkey

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics European Logistics & Services B.V.

Subsidiary

Almere

Netherlands

Consulting Services

 

 

LG Electronics Peru S.A.

Subsidiary

Lima

Peru

Electrical Equipment and Appliances Manufacturing

 

 

LG Electronics Vietnam Co., Ltd

Subsidiary

Nhu Quynh, Hung Yen

Viet Nam

Electronics Wholesale

 

 

LG Electronics S.A. (Pty) Ltd.

Subsidiary

Germiston

South Africa

Electronics Wholesale

 

 

LG Electronics Benelux Sales BV

Subsidiary

Amstelveen

Netherlands

Electronics Wholesale

 

 

LG CNS Co Ltd

Subsidiary

Seoul

Korea, Republic of

Computer System Design Services

2,076.2

10,000

LG N-Sys, Inc.

Subsidiary

Seoul

Korea, Republic of

Computer, Office Equipment and Software Merchant Wholesalers

622.7

715

V-ENS Co. Ltd

Subsidiary

Incheon

Korea, Republic of

Architecture and Engineering

560.0

550

LG CNS MIDDLE EAST

Subsidiary

Dubai

United Arab Emirates

Consulting Services

 

300

Bne Partners Inc.

Subsidiary

Seoul, Seoul

Korea, Republic of

Computer Programming

 

208

LG CNS India Pvt., Ltd.

Subsidiary

Bengaluru

India

Computer System Design Services

 

150

Korea Eleccom Co., Ltd.

Subsidiary

Yongin-Gun

Korea, Republic of

Electromedical and Control Instruments Manufacturing

 

53

Entrue Brasil Servicos de T.I. Ltda.

Subsidiary

Sao Paulo

Brazil

Computer System Design Services

 

40

LG CNS Europe B.V.

Subsidiary

Almere

Netherlands

Electronics Wholesale

24.0

39

Lg Cns UK Ltd.

Subsidiary

London

United Kingdom

Miscellaneous Professional Services

0.3

1

LG CNS China Co., Ltd.

Subsidiary

Beijing

China

Electrical Equipment and Appliances Manufacturing

 

 

Ucess Partners Co., Ltd.

Subsidiary

Seoul

Korea, Republic of

Miscellaneous Professional Services

 

 

Pt. LG CNS Indonesia

Subsidiary

Jakarta

Indonesia

Electrical Equipment and Appliances Manufacturing

 

 

LG CNS Japan Co., Ltd.

Subsidiary

Tokyo

Japan

Electrical Equipment and Appliances Manufacturing

 

 

LG N-Sys China Inc.

Subsidiary

Beijing

China

Computer System Design Services

 

 

LG CNS India U.K.

Subsidiary

London

United Kingdom

Electrical Equipment and Appliances Manufacturing

 

 

LG Household & Health Care

Affiliates

Seoul

Korea, Republic of

Miscellaneous Chemical Manufacturing

3,457.6

3,681

Coca-Cola Beverage Company

Subsidiary

Yangsan-si, Gyeongsangnam-do

Korea, Republic of

Beverage Manufacturing

755.2

2,120

The Faceshop Co., Ltd.

Subsidiary

Seoul

Korea, Republic of

Miscellaneous Chemical Manufacturing

248.8

300

Tfs Singapore Private Limited

Subsidiary

Singapore

Singapore

Health and Personal Care Wholesale

 

37

LG Household & Health Care America Inc.

Subsidiary

Cerritos, CA

United States

Health and Personal Care Wholesale

 

12

Future Co., Ltd.

Subsidiary

Chonan, Chungchongnam-Do

Korea, Republic of

Nonclassifiable Establishments

0.8

8

Everlife Agency Co.,Ltd.

Subsidiary

Fukuoka, Fukuoka

Japan

Advertising Services

52.4

4

Haitai Beverage Co., Ltd.

Subsidiary

Seoul, Seoul

Korea, Republic of

Beverage Manufacturing

214.2

 

Hangzhou Lg Cosmetics Co., Ltd.

Subsidiary

Hangzhou, Zhejiang

China

Miscellaneous Chemical Manufacturing

7.1

 

Diamond Pure Water Co., Ltd.

Subsidiary

Seoul, Seoul

Korea, Republic of

Beverage Manufacturing

 

 

LG Household & Health Care (Taiwan), Ltd.

Subsidiary

Taipei

Taiwan

Miscellaneous Chemical Manufacturing

 

 

LG Household & Health Care Trading (Shanghai) Co., Ltd

Subsidiary

Shanghai

China

Electronics Wholesale

 

 

Serveone Co Ltd

Subsidiary

Seoul

Korea, Republic of

Computer System Design Services

3,438.8

2,763

Serveone (Nanjing) Co., Ltd.

Subsidiary

Nanjing, Jiangsu

China

Miscellaneous Professional Services

 

 

SERVEONE Co.

Subsidiary

Seoul, Yeongdeungpo-gu

Korea, Republic of

Residential and Commercial Building Construction

 

2,000

Serveone Construction (NanJing) Co., Ltd

Subsidiary

Nanjing

China

Architecture and Engineering

 

 

LG Life Sciences, Ltd

Affiliates

Seoul

Korea, Republic of

Pharmaceutical Manufacturing

360.3

1,444

Lg Life Sciences Uk Ltd.

Subsidiary

London

United Kingdom

Pharmaceutical Manufacturing

 

 

LG Life Sciences India Pvt., Ltd.

Subsidiary

New Delhi

India

Research and Development Services

 

 

LG Life Sciences Poland SP. z. o. o

Subsidiary

Warsaw

Poland

Pharmaceutical Manufacturing

 

 

LG Life Sciences (Beijing) Co, Ltd.

Subsidiary

Beijing

China

Pharmaceutical Manufacturing

 

 

Lusem Co., Ltd.

Subsidiary

Kumi, Kyongsangbuk-Do

Korea, Republic of

Semiconductor and Other Electronic Component Manufacturing

343.1

827

LG International Corp

Subsidiary

Seoul

Korea, Republic of

Electronics Wholesale

11,353.6

659

Lg International Corporation. Dubai Office

Subsidiary

Deira

United Arab Emirates

Electronics Wholesale

 

1,360

Pixdix Co., Ltd.

Subsidiary

Seoul, Seoul

Korea, Republic of

Professional and Commercial Equipment Wholesale

101.7

116

Korea Commercial Vehicle Co., Ltd.

Subsidiary

Kwangju, Kwangju

Korea, Republic of

Motor Vehicle Wholesale

 

45

LG International (America), Inc.

Subsidiary

Cerritos, CA

United States

Electronics Wholesale

 

40

LG International Corp.

Branch

Sydney, NSW

Australia

Architecture and Engineering

 

4

Lg International (America) Inc.

Branch

Ciudad De Buenos Aires

Argentina

Electronics Wholesale

 

2

LG International Corp.

Branch

Tehran

Iran

Architecture and Engineering

 

 

LG International Corp.

Branch

Santiago

Chile

Industrial Machinery Repair and Maintenance

 

 

Lg International (S'Pore) Pte., Ltd

Subsidiary

Singapore

Singapore

Electronics Wholesale

1,035.6

34

Twinwine Corp.

Subsidiary

Seoul, Seoul

Korea, Republic of

Alcoholic Beverage Wholesale

4.5

22

LG International (Deutschland) GmbH

Subsidiary

Frankfurt Am Main, Hessen

Germany

Machinery Wholesale

525.0

10

Lg International Corp. Bangkok Office

Subsidiary

Bangkok, Bangkok

Thailand

Miscellaneous Professional Services

 

10

LG International Corp. Ho Chi Minh City Office

Subsidiary

Ho Chi Minh City

Viet Nam

Audio and Video Equipment Manufacturing

 

6

Lg International Corp.

Branch

Pasig

Philippines

Electronics Wholesale

 

6

Lg International (Hk) Limited

Subsidiary

Quarry Bay, Hong Kong

Hong Kong

Electronics Wholesale

2,100.0

 

Lg International (Hk) Limited Taipei Branch.

Subsidiary

Taipei City, Taipei

Taiwan

Metals and Minerals Wholesale

 

8

Lg International Saudi Llc

Subsidiary

Jeddah

Saudi Arabia

Nonclassifiable Establishments

 

 

Lg International Corporation, Amman Office

Subsidiary

Amman

Jordan

Electronics Wholesale

 

 

LG International Japan Ltd.

Subsidiary

Osaka

Japan

Electrical Equipment and Appliances Manufacturing

 

 

LG International DO Brazil Ltda

Subsidiary

Sao Paulo

Brazil

Electrical Equipment and Appliances Manufacturing

 

 

LG International (China) Corp.

Subsidiary

Shanghai

China

Electrical Equipment and Appliances Manufacturing

 

 

Lg International (Australia) Pty Limited

Subsidiary

 

 

 

 

 

LUSEM Co Ltd

Subsidiary

Gumi-si, Gyeongsangbuk-do

Korea, Republic of

Electrical Equipment and Appliances Manufacturing

304.4

577

LG Soft India Private Limited

Subsidiary

Bengaluru

India

Computer Programming

 

500

LG Chem Michigan Inc.

Subsidiary

Holland, MI

United States

Miscellaneous Chemical Manufacturing

 

200

LG Electronics Argentina S.A.

Subsidiary

Buenos Aires, Puerto Madero

Argentina

Consulting Services

149.1

180

LG Economic Research Institute

Subsidiary

Seoul

Korea, Republic of

Consulting Services

 

107

LG Chem (Taiwan), Ltd.

Subsidiary

Taipei

Taiwan

Electrical Equipment and Appliances Manufacturing

 

100

LG Sports

Subsidiary

Seoul

Korea, Republic of

Miscellaneous Professional Services

 

50

Lg Management Development Institute Co., Ltd.

Subsidiary

Seoul, Seoul

Korea, Republic of

Consulting Services

31.1

 

LG Innotek Huizhou Inc.

Subsidiary

Huizhou, Guangdong

China

Semiconductor and Other Electronic Component Manufacturing

 

 

LG Electronics Mexico S.A. DE C.V

Subsidiary

Tlalnepantla

Mexico

Electronics Wholesale

 

 

LG Innotek Yantai Co., Ltd.

Subsidiary

Yantai, Shandong

China

Semiconductor and Other Electronic Component Manufacturing

 

 

LG Alina Electronics

Subsidiary

Moscow

Russian Federation

Electrical Equipment and Appliances Manufacturing

 

 

Pixdix Co., Ltd.

Subsidiary

Seoul

Korea, Republic of

Electrical Equipment and Appliances Manufacturing

 

 

HILOGITICS EUROPE B.V.

Subsidiary

Oosterhout

Netherlands

Consulting Services

 

 

LG Chem China Investment Co., Ltd.

Subsidiary

Shenzhen

China

Investment Services

 

 

Tianjin LG New Building Materials Co., Ltd.

Subsidiary

Tianjin

China

Petroleum Product Manufacturing

 

 

Kunshan LGMSK Computer Co., Ltd.

Subsidiary

Kunshan, Jiangsu

China

Electrical Equipment and Appliances Manufacturing

 

 

LG Chem Brasil, Ltd.

Subsidiary

Sao Paulo

Brazil

Miscellaneous Chemical Manufacturing

 

 

LG Chemical (Guangzhou) Engineering Plastics Co., Ltd.

Subsidiary

Guangzhou

China

Rubber and Plastic Product Manufacturing

 

 

LG SILTRON - France

Subsidiary

Paris

France

Semiconductor and Other Electronic Component Manufacturing

 

 

LG Chemical India Private Ltd.

Subsidiary

Gurgaon, Haryana

India

Miscellaneous Chemical Manufacturing

 

 

LG Electronics European Shared Service Center B.V.

Subsidiary

Almere

Netherlands

Electrical Equipment and Appliances Manufacturing

 

 

 

 

 

Competitors Report

 

CompanyName

Location

Employees

Ownership

Daewoo International Corporation

Seoul, Korea, Republic of

2,050

Public

GS Global Corp

Seoul, Korea, Republic of

246

Public

Hyundai Corporation

Seoul, Korea, Republic of

347

Public

Korea Gas Corp

Seongnam, Korea, Republic of

2,976

Public

Samsung Group

Seoul, Korea, Republic of

263,000

Private

Seoul City Gas Co Ltd

Seoul, Korea, Republic of

578

Public

SK Holdings Co, Ltd.

Seoul, Korea, Republic of

122

Public

SK Innovation Co Ltd

Seoul, Korea, Republic of

1,858

Public

 

 

Executives Report

 

Board of Directors

 

Name

Title

Function

Jun Ho Cho

 

Co-President, Director

Director/Board Member

Biography:

Cho Jun Ho has been Co-President and Director of LG INTERNATIONAL CORP. Currently, Cho also serves as Chief Executive Officer, Chief Operations Officer and President of LG Corp. Previously, Cho was Vice President of LG ELECTRONICS INC. and Vice President of LG Corp. Cho received a Master's degree in Marketing from University of Chicago, the United States.

Age: 54

Education:

University of Chicago, M (Marketing)
Seoul National University, B (Business Administration)

June Suk Choo

 

Board Member

Director/Board Member

 

Min Han

 

Non-Executive Independent Director

Director/Board Member

 

Biography:

Han Min has been Non-Executive Independent Director of LG INTERNATIONAL CORP since March 11, 2011. Currently, Han is a professor of Law in Ewha Womans University. Previously, Han was a lawyer at KIM & CHANG. Han received a Master's degree in Law from Cornell University, the United States.

Age: 54

Education:

Cornell University, M (Law)

Sung Huh

 

CFO

Director/Board Member

 

Seong Huh

 

Chief Financial Officer, Managing Director

Director/Board Member

 

Biography:

Huh Seong has been Chief Financial Officer and Managing Director of LG INTERNATIONAL CORP since March 20, 2009. Previously, Huh was Chief Financial Officer of LG Life Sciences, Ltd and Assistant Managing Director as well as a team leader of the DA management and planning division of LG Electronics Inc. Huh received a Bachelor's degree in Business Administration from Korea University.

Age: 53

Education:

Korea University, B (Business Administration)

Cho Juno

 

Board Member

Director/Board Member

 

Ju Myeong Kang

 

Non-Executive Independent Director

Director/Board Member

 

Biography:

Kang Ju Myeong has been Non-Executive Independent Director of LG INTERNATIONAL CORP since March 7, 2007. Kang is currently a professori of Seoul National University, Korea. Previously, Kang was Head of a research center of Seoul National University, Korea and Chairman of The Korea Society for Energy Engineering. Kang received a Doctorate's degree in Petroleum Engineering from University of Oklahoma, the United States.

Age: 60

Education:

University of Oklahoma, PHD (Petroleum Engineering)

Joo Myung Kang

 

Board Member

Director/Board Member

 

Dong Wuk Kim

 

Non-Executive Independent Director

Director/Board Member

 

Biography:

Kim Dong Wuk has been Non-Executive Independent Director of LG INTERNATIONAL CORP since March 15, 2013. Kim currently also works for HYUNDAI ENGINEERING CO., LTD where Kim used to be Vice President, President and Chief Executive Officer. Kim holds a Bachelor's degree in Civil Engineering from Yonsei University, Korea.

Age: 60

Education:

Yonsei University, B (Civil Engineering)

Jeong Cheol Lee

 

Non-Executive Independent Director

Director/Board Member

 

Biography:

Lee Jeong Cheol has been Non-Executive Independent Director of LG INTERNATIONAL CORP since March 11, 2011. Lee also serves as Chief Executive Officer and President of HI Asset Magement Co., Ltd. Previously, Lee was Vice President of Mirae Asset Investment Management Co.,Ltd. and Chief Executive Officer as well as President of WOORI ASSET MANAGEMENT CO., LTD. Lee received a Master's degree in Business Administration from Sogang University, Korea.

Age: 55

Education:

Sogang University, M (Business Administration)

Jung Chul Rhee

 

Board Member

Director/Board Member

 

Age: 55

 

Executives

 

Name

Title

Function

Jun Ho Cho

 

Co-President, Director

President

Biography:

Cho Jun Ho has been Co-President and Director of LG INTERNATIONAL CORP. Currently, Cho also serves as Chief Executive Officer, Chief Operations Officer and President of LG Corp. Previously, Cho was Vice President of LG ELECTRONICS INC. and Vice President of LG Corp. Cho received a Master's degree in Marketing from University of Chicago, the United States.

Age: 54

Education:

University of Chicago, M (Marketing)
Seoul National University, B (Business Administration)

Guk Mo Ahn

 

Managing Director

Managing Director

 

Age: 58

Education:

Hankuk University of Foreign Studies, B

 

 

Seong Huh

 

Chief Financial Officer, Managing Director

Managing Director

 

 

 

Biography:

Huh Seong has been Chief Financial Officer and Managing Director of LG INTERNATIONAL CORP since March 20, 2009. Previously, Huh was Chief Financial Officer of LG Life Sciences, Ltd and Assistant Managing Director as well as a team leader of the DA management and planning division of LG Electronics Inc. Huh received a Bachelor's degree in Business Administration from Korea University.

Age: 53

Education:

Korea University, B (Business Administration)

Gang Wu Lee

 

Managing Director

Managing Director

 

Age: 56

Education:

Hongik University, B (Business Administration)

Chun Seong Yoon

 

Managing Director

Managing Director

 

Age: 49

Education:

Yonsei University, M (Geology)

Sung Huh

 

CFO

Finance Executive

 

Junesuk Choo

 

Director

Other

 

Age: 65

Joomyung Kang

 

Director

Other

 

Age: 60

Chi Ho Song

 

Vice President

Other

 

Age: 54

Education:

Korea University, B (Economics)

Myeong Jae Yoo

 

Vice President

Other

 

Biography:

Yoo Myeong Jae is Vice President in LG INTERNATIONAL CORP. Yoo holds a Bachelor's degree in Arabic Language from Hankuk University of Foreign Studies, Korea.

Age: 60

Education:

Hankook University of Foreign Studies, B

 

 

Significant Developments

 

 

 

LG International Corporation to Establish New Subsidiary

Jul 30, 2013


LG International Corporation announced that it will establish a new wholly owned subsidiary in Hong Kong to acquire stake in China-based coal plant. The new entity, to be capitalized at KRW 102,551,185,330, will be mainly engaged in the investment in coal plant. The expected transaction settlement date is not disclosed.

LG International Corporation to Jointly Establish New Company

May 13, 2013


LG International Corporation announced that it will jointly establish a new company to secure stable profit basis. The new entity, to be capitalized at KRW 1,431,985,000, will be mainly engaged in the petrol chemical products. The Company will invest KRW 429,595,500, holding a 30% stake in it.

LG International Corporation Announces Changes in Shareholding Structure

May 03, 2013


LG International Corporation announced that Shinhan BNP Paribas ITMC Co.,Ltd. has acquired 1,948,853 shares of the Company, representing a 5.03% stake.

LG International Corporation Declares Annual Cash Dividend for FY 2012

Jan 23, 2013


LG International Corporation announced that it has declared an annual cash dividend of KRW 500 per share of common stock to shareholders of record on December 31, 2012 for the fiscal year 2012. The dividend rate of market price is 1.07% and the total amount of the cash dividend is KRW 19,329,624,500.

LG International Corporation Acquires 20% Stake In Geopark Holdings Ltd's GeoPark Colombia SA; Announces Expansion Of LG International and Geopark Partnership Into Colombia

Dec 18, 2012


LG International Corporation (LGI) and Geopark Holdings Ltd (GeoPark) announced that LGI has joined GeoPark's operations in Colombia through the acquisition of a 20% interest in GeoPark Colombia SA, a company that holds GeoPark's Colombian assets (GeoPark Colombia") and which includes interests in 10 hydrocarbon blocks. In addition, GeoPark and LGI announced their agreement to extend, in March 2013, their strategic alliance to build a portfolio of upstream oil and gas assets throughout Latin America through 2015. This partnership, formed in 2010 and which now includes joint projects in Chile and Colombia with interests in 16 exploration, development and production blocks, is currently targeting new project acquisitions in Brazil, Colombia, Peru, Argentina and Chile. The transaction by which LGI has acquired a 20% interest in GeoPark Colombia provides that LGI pay USD 20.1 million in cash, being its proportion of the purchase price of the Colombian assets (acquired by GeoPark in February and March 2012), adjusted for working capital, reimbursement of transaction expenses, contribution of net additional capital invested by GeoPark into the Colombian business during 2012 and pro-rata assumption of existing debt and any future investment obligations.

LG International Corporation Sells Entire Shares of GS Retail Co Ltd

Nov 07, 2012


GS Retail Co Ltd announced that LG International Corporation has sold its entire 9,218,240 shares of GS Retail Co Ltd, equivalent to an 11.97% stake.

LG International Corporation to Sell Entire Shares of GS Retail Co Ltd

Nov 01, 2012


LG International Corporation announced that it will sell its entire 220,000 shares of GS Retail Co Ltd, which mainly engaged in retail business, for KRW 287,609,088,000, on November 2, 2012, to improve its financial structure.

DNO International ASA Announces Operational Update on West Bukha Production with Korea's LG International Corp

Sep 06, 2012


DNO International ASA (DNO) announced that it has restarted production from the West Bukha field in Block 8 (eight), offshore Sultanate of Oman, at an estimated daily rate of 10,000 barrels of oil and 25 million cubic feet of gas, following a five-month shutdown required to locate and repair a pipeline blockage. The repair included cutting and replacing a 4.3-kilometer section of the 12-inch pipeline connecting the field to the gathering and export facilities at the nearby Bukha field. The Bukha field production, also from two wells, was not impacted by the blockage and will continue at an estimated daily rate of 400 barrels of liquids and 10 million cubic feet of gas. A third recently drilled West Bukha development well will be brought on stream this fall following completion and further testing. A fourth West Bukha development well is progressing according to plan and drilling ahead at 4,490 meters. DNO holds a 50% interest in and operates Block 8 containing the West Bukha and Bukha fields, and their respective platforms. Korea's LG International Corp holds the remaining 50% interest in the block. Elsewhere, DNO has completed its obligation to the Kurdistan Regional Government under a protocol to reconcile past accounts and commence application of the fiscal terms and conditions of the existing Production Sharing Contract covering the Tawke license as from June 1, 2012.

 

 

News

 

LG International to acquire stake in Mongolian coal chemical plant operator
Private Equity Korea (283 Words)

02-Aug-2013

LG Int'l Makes Equity Investment in Chinese Urea Plant
Korea IT Times (198 Words)

31-Jul-2013

LG International to buy into China's urea-producing plant
Yonhap News Agency (76 Words)

31-Jul-2013

Yonhap: LG International To Buy Into China's Urea Producing Plant
World News Connection (275 Words)

31-Jul-2013

LG International Corporation to Establish New Subsidiary
Reuters (50 Words)

31-Jul-2013

S Korean consortium to help Turkmenistan produce high-octane gasoline
Itar-Tass (491 Words)

30-Jul-2013

Turkmenistan to produce high-octane gasoline
Central Asian News Service (113 Words)

30-Jul-2013

Mott MacDonald raises the bar, adds to project portfolio
Oil & Gas News (1571 Words)

29-Jul-2013

LG International Corp. - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report
MarketResearch.com (277 Words)

26-Jul-2013

Companies team up to win Turkmenistan refinery project
Korea Joongang Daily (109 Words)

25-Jul-2013

ROK Daily: Companies Team Up To Win Turkmenistan Refinery Project
World News Connection (242 Words)

25-Jul-2013



Annual Income Statement

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)           

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Reclassified Normal
31-Dec-2012

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Restated Normal
31-Dec-2009

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Net Sales

11,353.6

12,624.7

12,441.7

8,089.7

10,248.1

Revenue

11,353.6

12,624.7

12,441.7

8,089.7

10,248.1

Total Revenue

11,353.6

12,624.7

12,441.7

8,089.7

10,248.1

 

 

 

 

 

 

    Cost of Revenue

10,807.2

12,056.6

11,863.2

7,623.7

9,678.6

Cost of Revenue, Total

10,807.2

12,056.6

11,863.2

7,623.7

9,678.6

Gross Profit

546.3

568.1

578.5

466.0

569.5

 

 

 

 

 

 

    Selling/General/Administrative Expense

255.2

301.9

266.4

223.2

379.9

    Labor & Related Expense

87.4

95.1

85.6

73.2

-

    Advertising Expense

10.1

13.3

12.5

10.9

-

Total Selling/General/Administrative Expenses

352.7

410.3

364.4

307.3

379.9

    Depreciation

8.3

6.8

4.8

5.8

-

    Amortization of Intangibles

3.0

4.3

2.7

7.2

-

Depreciation/Amortization

11.3

11.1

7.5

13.0

-

        Investment Income - Operating

-

-

-17.7

-

-

    Interest/Investment Income - Operating

-

-

-17.7

-

-

Interest Expense (Income) - Net Operating Total

-

-

-17.7

-

-

    Impairment-Assets Held for Use

-

-

25.3

-

-

    Loss (Gain) on Sale of Assets - Operating

-

-

0.1

-

-

Unusual Expense (Income)

-

-

25.4

-

-

    Other Operating Expense

-

-

20.2

-

-

    Other, Net

-

-

-21.5

-

-

Other Operating Expenses, Total

-

-

-1.4

-

-

Total Operating Expense

11,171.2

12,478.0

12,241.5

7,944.1

10,058.5

 

 

 

 

 

 

Operating Income

182.4

146.7

200.2

145.6

189.6

 

 

 

 

 

 

        Interest Expense - Non-Operating

-46.0

-43.2

-33.5

-38.0

-47.4

    Interest Expense, Net Non-Operating

-46.0

-43.2

-33.5

-38.0

-47.4

        Interest Income - Non-Operating

25.6

15.0

15.2

19.8

24.6

        Investment Income - Non-Operating

99.1

145.3

203.7

63.7

-10.6

    Interest/Investment Income - Non-Operating

124.7

160.3

218.8

83.4

14.1

    Interest Income (Expense) - Net Non-Operating

0.0

0.0

0.0

-

-

Interest Income (Expense) - Net Non-Operating Total

78.7

117.2

185.3

45.5

-33.4

Gain (Loss) on Sale of Assets

-

-

-

-0.2

3.9

    Other Non-Operating Income (Expense)

5.1

72.3

-27.9

-91.9

-102.4

Other, Net

5.1

72.3

-27.9

-91.9

-102.4

Income Before Tax

266.2

336.2

357.6

99.0

57.8

 

 

 

 

 

 

Total Income Tax

62.7

99.9

77.2

23.6

23.8

Income After Tax

203.5

236.3

280.4

75.5

34.0

 

 

 

 

 

 

    Minority Interest

-6.7

-12.6

-4.3

-2.3

6.1

Net Income Before Extraord Items

196.7

223.6

276.1

73.2

40.1

Net Income

196.7

223.6

276.1

73.2

40.1

 

 

 

 

 

 

Income Available to Common Excl Extraord Items

196.7

223.6

276.1

73.2

40.1

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

196.7

223.6

276.1

73.2

40.1

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

38.7

38.7

38.7

38.7

38.7

Basic EPS Excl Extraord Items

5.09

5.79

7.14

1.89

1.04

Basic/Primary EPS Incl Extraord Items

5.09

5.79

7.14

1.89

1.04

Dilution Adjustment

-

-

0.0

0.0

-

Diluted Net Income

196.7

223.6

276.1

73.2

40.1

Diluted Weighted Average Shares

38.7

38.7

38.7

38.7

38.7

Diluted EPS Excl Extraord Items

5.09

5.79

7.14

1.89

1.04

Diluted EPS Incl Extraord Items

5.09

5.79

7.14

1.89

1.04

Dividends per Share - Common Stock Primary Issue

0.44

0.45

0.30

0.16

0.18

Gross Dividends - Common Stock

17.2

17.4

11.7

6.1

7.0

Interest Expense, Supplemental

46.0

43.2

33.5

38.0

47.4

Depreciation, Supplemental

11.6

8.2

4.9

5.9

4.0

Total Special Items

-

-

25.4

3.3

-0.1

Normalized Income Before Tax

266.2

336.2

383.0

102.4

57.7

 

 

 

 

 

 

Effect of Special Items on Income Taxes

-

-

5.5

0.1

-1.6

Inc Tax Ex Impact of Sp Items

62.7

99.9

82.7

23.6

22.2

Normalized Income After Tax

203.5

236.3

300.3

78.8

35.5

 

 

 

 

 

 

Normalized Inc. Avail to Com.

196.7

223.6

296.0

76.5

41.6

 

 

 

 

 

 

Basic Normalized EPS

5.09

5.79

7.66

1.98

1.08

Diluted Normalized EPS

5.09

5.79

7.66

1.98

1.08

Amort of Acquisition Costs, Supplemental

-

-

-

3.1

3.8

Amort of Intangibles, Supplemental

32.9

55.8

32.6

4.0

3.6

Rental Expenses

6.3

13.1

8.8

7.0

-

Advertising Expense, Supplemental

10.1

13.3

12.5

10.9

-

Normalized EBIT

182.4

146.7

207.9

145.6

189.6

Normalized EBITDA

226.8

210.7

245.4

158.7

201.0

 

 

Annual Balance Sheet

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Restated Normal
31-Dec-2009

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate

1066.400024

1152

1134.9

1164.475

1259.55

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Equivalents

501.0

339.1

176.2

149.1

206.2

    Short Term Investments

224.1

134.6

16.9

2.5

33.0

Cash and Short Term Investments

725.0

473.8

193.1

151.6

239.2

        Accounts Receivable - Trade, Gross

1,326.4

1,525.6

1,429.7

1,110.1

1,151.6

        Provision for Doubtful Accounts

-91.3

-89.8

-94.1

-87.0

-82.9

    Trade Accounts Receivable - Net

1,258.9

1,454.4

1,355.0

1,039.6

1,080.3

    Other Receivables

67.0

79.9

67.8

85.1

235.7

Total Receivables, Net

1,325.9

1,534.3

1,422.8

1,124.6

1,316.1

    Inventories - Finished Goods

586.4

508.8

646.3

308.3

388.3

    Inventories - Work In Progress

0.0

-

-

0.9

1.1

    Inventories - Raw Materials

14.8

12.2

12.4

0.7

5.9

    Inventories - Other

63.3

121.3

155.3

124.6

132.9

Total Inventory

664.4

642.3

814.0

434.4

528.2

Prepaid Expenses

12.9

7.3

11.5

6.5

6.5

    Deferred Income Tax - Current Asset

-

-

-

34.2

30.8

    Other Current Assets

24.4

45.3

27.5

11.9

98.6

Other Current Assets, Total

24.4

45.3

27.5

46.1

129.4

Total Current Assets

2,752.8

2,703.0

2,468.9

1,763.3

2,219.4

 

 

 

 

 

 

        Buildings

70.1

48.0

45.9

39.2

31.7

        Land/Improvements

14.1

13.7

18.6

18.1

15.3

        Machinery/Equipment

56.3

32.4

25.6

9.2

6.5

        Construction in Progress

9.7

21.1

17.1

7.7

3.5

        Other Property/Plant/Equipment

18.4

21.5

20.3

15.6

11.4

    Property/Plant/Equipment - Gross

168.7

136.6

127.5

89.9

68.4

    Accumulated Depreciation

-43.9

-34.0

-33.4

-26.8

-19.6

Property/Plant/Equipment - Net

165.5

136.4

112.4

63.0

48.8

Goodwill, Net

15.9

18.2

18.9

7.1

9.0

Intangibles, Net

854.6

421.3

285.1

32.8

25.1

    LT Investment - Affiliate Companies

579.4

560.7

680.1

456.7

361.9

    LT Investments - Other

124.6

300.3

71.0

178.4

158.4

Long Term Investments

704.1

861.0

751.1

635.1

520.3

Note Receivable - Long Term

129.8

129.6

133.2

166.7

137.3

    Deferred Income Tax - Long Term Asset

15.9

5.8

4.5

2.7

-

    Other Long Term Assets

10.3

13.7

19.7

36.9

22.1

Other Long Term Assets, Total

26.1

19.5

24.2

39.6

22.1

Total Assets

4,648.8

4,289.1

3,793.7

2,707.7

2,982.0

 

 

 

 

 

 

Accounts Payable

1,263.7

1,155.7

1,235.4

1,096.4

1,041.7

Accrued Expenses

24.9

33.1

23.8

17.3

19.1

Notes Payable/Short Term Debt

600.4

714.4

727.8

252.9

629.1

Current Portion - Long Term Debt/Capital Leases

96.7

172.2

115.2

163.1

99.7

    Dividends Payable

-

0.0

0.0

0.0

0.0

    Customer Advances

36.1

54.0

49.9

19.5

28.5

    Security Deposits

3.5

2.9

3.4

1.3

0.0

    Income Taxes Payable

37.4

58.0

12.1

4.3

18.2

    Other Payables

187.0

208.8

155.6

161.2

256.4

    Other Current Liabilities

22.6

32.8

25.9

11.7

24.3

Other Current liabilities, Total

286.7

356.5

246.9

198.1

327.3

Total Current Liabilities

2,272.4

2,432.0

2,349.0

1,727.7

2,116.9

 

 

 

 

 

 

    Long Term Debt

763.4

656.5

481.5

396.7

389.6

Total Long Term Debt

763.4

656.5

481.5

396.7

389.6

Total Debt

1,460.5

1,543.2

1,324.4

812.6

1,118.4

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

86.5

11.6

29.7

12.1

10.1

Deferred Income Tax

86.5

11.6

29.7

12.1

10.1

Minority Interest

137.7

13.5

-1.7

-10.9

-13.0

    Reserves

1.5

3.3

15.0

-

-

    Pension Benefits - Underfunded

4.8

4.2

4.1

5.2

5.0

    Other Long Term Liabilities

5.3

5.2

5.6

3.9

3.1

Other Liabilities, Total

11.6

12.8

24.7

9.2

8.0

Total Liabilities

3,271.5

3,126.4

2,883.2

2,134.8

2,511.6

 

 

 

 

 

 

    Common Stock

181.7

168.2

170.8

166.4

153.9

Common Stock

181.7

168.2

170.8

166.4

153.9

Additional Paid-In Capital

78.4

73.0

74.2

89.3

82.6

Retained Earnings (Accumulated Deficit)

1,028.6

779.2

585.5

277.9

188.4

Treasury Stock - Common

-0.9

-0.8

-0.9

-0.8

-0.8

Unrealized Gain (Loss)

76.5

90.2

38.2

7.8

9.0

    Translation Adjustment

-3.1

37.9

27.6

32.3

37.4

    Other Equity

16.1

14.9

15.1

-

-

    Other Comprehensive Income

0.0

0.0

0.0

-

-

Other Equity, Total

13.0

52.8

42.8

32.3

37.4

Total Equity

1,377.3

1,162.6

910.5

572.9

470.4

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

4,648.8

4,289.1

3,793.7

2,707.7

2,982.0

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

38.7

38.7

38.7

38.7

38.7

Total Common Shares Outstanding

38.7

38.7

38.7

38.7

38.7

Treasury Shares - Common Stock Primary Issue

0.1

0.1

0.1

0.1

0.1

Employees

-

706

655

623

651

Number of Common Shareholders

-

28,613

19,329

20,679

21,050

Deferred Revenue - Current

36.1

54.0

49.9

19.5

28.5

Total Long Term Debt, Supplemental

860.0

-

-

560.1

489.4

Long Term Debt Maturing within 1 Year

96.7

-

-

163.1

99.7

Long Term Debt Maturing in Year 2

187.0

-

-

98.8

187.1

Long Term Debt Maturing in Year 3

187.0

-

-

172.5

70.7

Long Term Debt Maturing in Year 4

140.8

-

-

18.0

57.1

Long Term Debt Maturing in Year 5

140.8

-

-

26.9

34.6

Long Term Debt Maturing in 2-3 Years

374.0

-

-

271.3

257.8

Long Term Debt Maturing in 4-5 Years

281.7

-

-

44.9

91.6

Long Term Debt Matur. in Year 6 & Beyond

107.7

-

-

80.7

40.2

Total Operating Leases, Supplemental

-

-

-

6.8

10.2

Operating Lease Payments Due in Year 1

-

-

-

1.6

2.0

Operating Lease Payments Due in Year 2

-

-

-

1.6

2.0

Operating Lease Payments Due in Year 3

-

-

-

1.6

2.0

Operating Lease Payments Due in Year 4

-

-

-

1.2

1.9

Operating Lease Pymts. Due in 2-3 Years

-

-

-

3.2

3.9

Operating Lease Pymts. Due in 4-5 Years

-

-

-

1.2

1.9

Oper. Lse. Pymts. Due in Year 6 & Beyond

-

-

-

0.8

2.4

 

 

Annual Cash Flows

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Reclassified Normal
31-Dec-2009

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income/Starting Line

203.5

236.3

280.4

75.5

34.0

    Depreciation

13.3

8.6

4.9

5.9

4.0

Depreciation/Depletion

13.3

8.6

4.9

5.9

4.0

    Amortization of Intangibles

33.0

55.8

32.6

7.2

7.4

Amortization

33.0

55.8

32.6

7.2

7.4

Deferred Taxes

-

-

-

-2.2

-0.9

    Unusual Items

-

-

-

10.5

-62.3

    Equity in Net Earnings (Loss)

-

-

-

-29.8

0.0

    Other Non-Cash Items

-32.7

-15.8

-20.8

13.4

165.1

Non-Cash Items

-32.7

-15.8

-20.8

-5.9

102.9

    Accounts Receivable

288.6

-113.7

50.6

269.8

-160.7

    Inventories

2.8

179.3

-351.8

201.8

-96.2

    Prepaid Expenses

-

-

-

0.6

-4.0

    Other Assets

3.6

-8.1

-11.3

2.2

-13.8

    Accounts Payable

16.2

-72.7

101.0

-133.6

253.6

    Accrued Expenses

-

-

-

-3.1

1.9

    Taxes Payable

-

-

-

-14.0

20.4

    Other Liabilities

-38.5

-3.5

44.3

-18.8

-0.1

    Other Assets & Liabilities, Net

0.0

0.0

0.0

0.3

0.0

    Other Operating Cash Flow

-84.6

-71.0

-104.0

-

-

Changes in Working Capital

188.0

-89.7

-271.2

305.3

1.2

Cash from Operating Activities

405.1

195.2

25.9

385.8

148.5

 

 

 

 

 

 

    Purchase of Fixed Assets

-50.8

-112.2

-14.6

-48.5

-101.4

    Purchase/Acquisition of Intangibles

-123.8

-148.5

-41.6

-4.3

-6.4

Capital Expenditures

-174.6

-260.8

-56.2

-52.8

-107.8

    Sale of Business

-

-

-

-

24.7

    Sale of Fixed Assets

3.8

55.4

1.5

1.3

11.6

    Sale/Maturity of Investment

484.2

323.6

74.4

36.5

150.2

    Purchase of Investments

-534.1

-286.3

-110.6

-44.1

-221.6

    Sale of Intangible Assets

0.1

16.4

-

0.1

0.0

    Other Investing Cash Flow

-11.8

4.7

19.0

-5.9

-53.2

Other Investing Cash Flow Items, Total

-57.8

113.8

-15.8

-12.0

-88.3

Cash from Investing Activities

-232.4

-147.0

-72.0

-64.9

-196.1

 

 

 

 

 

 

    Other Financing Cash Flow

-22.9

132.0

66.7

-147.7

-10.6

Financing Cash Flow Items

-22.9

132.0

66.7

-147.7

-10.6

    Cash Dividends Paid - Common

-17.2

-12.2

-6.7

-6.3

-13.5

Total Cash Dividends Paid

-17.2

-12.2

-6.7

-6.3

-13.5

        Short Term Debt Reduction

-

-

-

-382.6

-81.7

    Short Term Debt, Net

-

-

-

-382.6

-81.7

        Long Term Debt Issued

-

-

-

240.9

230.5

        Long Term Debt Reduction

-

-

-

-55.9

-10.0

    Long Term Debt, Net

-

-

-

184.9

220.5

Issuance (Retirement) of Debt, Net

-

-

-

-197.7

138.7

Cash from Financing Activities

-40.0

119.8

60.0

-351.7

114.6

 

 

 

 

 

 

Foreign Exchange Effects

-5.2

4.2

2.7

-36.7

38.9

Net Change in Cash

127.4

172.2

16.7

-67.4

105.9

 

 

 

 

 

 

Net Cash - Beginning Balance

346.7

180.5

156.2

203.4

130.0

Net Cash - Ending Balance

474.1

352.6

172.9

136.0

235.9

Cash Interest Paid

61.1

40.6

38.6

-

-

Cash Taxes Paid

79.0

82.4

88.1

-

-

 

Annual Income Statement

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)           

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Reclassified Normal
31-Dec-2012

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Restated Normal
31-Dec-2009

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Sales Revenue

11,353.6

12,624.7

12,441.7

8,089.7

10,248.1

Total Revenue

11,353.6

12,624.7

12,441.7

8,089.7

10,248.1

 

 

 

 

 

 

    Costs of Goods & Services Sold

10,807.2

12,056.6

11,863.2

7,623.7

9,678.6

    Selling/General/Adm.

-

-

-

-

379.9

    Salaries & Wages

65.9

75.1

68.7

57.9

-

    Retirement & Severance Benefits

6.2

5.2

4.5

4.7

-

    Employee Benefits

15.3

14.8

12.3

10.6

-

    Travel Expense

7.6

8.9

7.3

5.0

-

    Communication Expense

-

-

2.2

1.7

-

    Utility Expense

-

-

1.1

0.5

-

    Taxes & Dues

5.2

16.1

3.0

3.4

-

    Expense-Consumable Goods

-

-

0.6

0.4

-

    Publication Expense

-

-

0.3

1.0

-

    Rental Expense

6.3

13.1

8.8

7.0

-

    Vehicle Maintenance Expense

-

-

1.1

0.9

-

    Repair Expense

-

-

0.5

3.8

-

    Insurance Expense

5.0

7.2

5.7

3.2

-

    Commissions

68.5

75.2

43.2

41.3

-

    Sales Commissions

7.9

16.7

41.9

35.3

-

    Purchase Commissions

-

-

1.7

1.6

-

    Storage Expense

6.6

5.3

4.4

3.1

-

    Shipping & Handling Expense

110.3

116.5

108.4

90.3

-

    Cost of Loading & Unloading Expense

5.9

4.7

3.2

2.4

-

    Packaging Expense

0.4

0.3

0.3

0.0

-

    Entertainment Expense

-

-

4.4

3.1

-

    Advertising Expense

10.1

13.3

12.5

10.9

-

    Education Expense

-

-

2.3

1.7

-

    Overseas Branch Management Expense

19.6

19.5

17.5

15.6

-

    Sample Expense

-

-

0.4

0.2

-

    Customs Expense

-

-

0.5

0.5

-

    Conference Expense

-

-

0.3

0.2

-

    Expense of Allow. for DA

-4.6

0.2

7.1

1.0

-

    Depreciation

8.3

6.8

4.8

5.8

-

    Amort. of Intangibless

3.0

4.3

2.7

7.2

-

    Other Selling & Administrative Expense

16.5

18.0

-

0.0

-

    Adj. for Other Selling & Admin. Expense

0.0

0.0

0.0

-

-

    Gain on Foreign Currency Transaction

-

-

-264.2

-

-

    Gain on Foreign Currency Translation

-

-

-19.4

-

-

    Gain on Derivative Transaction

-

-

-27.3

-

-

    Gain on Valt of Derivatives

-

-

-8.8

-

-

    Gain on Valt of Confirmed Contracts

-

-

-7.1

-

-

    Gain on Disposal of PPT

-

-

-0.2

-

-

    Miscellaneous Income

-

-

-21.5

-

-

    Reversal of Allow. for DA

-

-

-0.1

-

-

    Adj. for Other Operating Income

-

-

0.0

-

-

    Other Allow. for DA

-

-

1.2

-

-

    Loss on Foreign Currency Transaction

-

-

266.6

-

-

    Loss on Foreign Currency Translation

-

-

15.3

-

-

    Loss on Derivative Transaction

-

-

17.4

-

-

    Loss on Valt of Derivatives

-

-

9.9

-

-

    Loss on Valt of Confirmed Contracts

-

-

8.8

-

-

    Loss on Disposal of PPT

-

-

0.3

-

-

    Miscellaneous Loss

-

-

10.2

-

-

    Impmt Loss on PPT

-

-

4.0

-

-

    Impmt Loss on Intangibless

-

-

21.3

-

-

    Adj. for Other Operating Expense

-

-

0.0

-

-

Total Operating Expense

11,171.2

12,478.0

12,241.5

7,944.1

10,058.5

 

 

 

 

 

 

    Interest Income

25.6

15.0

15.2

19.8

24.6

    Dividend Income

10.8

11.4

7.8

6.6

11.6

    G-Tang Asst Disposal

-

-

-

0.1

4.0

    Gain on Derivatives Transaction

-

-

18.3

70.0

186.5

    Gain on Valt of Currency Forward

0.1

2.8

0.8

5.2

24.7

    G-Inv.Asset Disposal

-

-

-

1.0

0.5

    Gain on Disposal of Other Invmt Assets

-

-

0.1

-

-

    Gain-Disposal of F.A. Avail. for Sale

95.2

0.2

1.4

-

-

    Gain on Disposal of Invmt in Affiliates

-

81.4

7.7

-

-

    Loss on Disposal of Subsidiary & Affilia

-2.5

-

-

0.7

-

    Gain on Foreign Currency Transaction

197.9

308.1

56.4

262.6

443.3

    Gain on Currency Forward Transaction

28.6

27.0

-

-

-

    Gain on Foreign Currency Translation

116.5

48.5

17.0

61.5

98.2

    G-Contract Valuation

-

-

-

7.4

107.8

    Revers-Doubtful Acct

-

-

-

0.1

0.0

    Recovery-Sales Guarantee Reserve

-

-

-

-

0.0

    Miscellaneous Non-Operating Income

-

-

-

8.2

5.8

    Guarantee Payment Income

0.0

0.0

0.0

-

-

    Interest Expense, Non-Operating

-46.0

-43.2

-33.5

-38.0

-47.4

    L-Mkt Secs Disposal

-

-

-

0.0

0.0

    L-Sec for Sale Disp

-

-

-

-

-0.6

    Loss on Disposal of Other Invmt Assets

-

-

0.0

-0.5

-

    Loss on Disposal of Current Invmt Assets

-

-

0.0

-

-

    Impmt Loss-Fincl Instrm Avail. for Sale

-

-

-0.7

-

-

    L-Tang.Asst Disposal

-

-

-

-0.3

-0.2

    Loss-Intangible Assets Disposal

-

-

-

-

0.0

    Impmt Loss on Intangibless

-23.5

-27.2

-

-

-

    Gain/Loss on Furture Transaction

2.7

20.2

-27.6

-126.3

-143.7

    Gain/Loss on Valuation of Furture

-2.6

-4.5

-

-

-

    Loss on Valt of Currency Forward

-4.4

-1.0

-0.1

-8.4

-116.7

    Loss on Foreign Currency Transaction

-200.3

-298.9

-51.9

-260.6

-539.9

    Loss on Currency Forward Transaction

-56.7

-26.3

-

-

-

    Loss on Foreign Currency Translation

-91.4

-57.1

-10.6

-44.8

-131.5

    Loss on Disposal of Trade Receivable

-13.3

-14.0

-16.9

-14.5

-35.2

    Rec. of Allow. for DA

4.4

0.6

-

-16.7

-7.6

    L-Contract Valuation

-

-

-

-4.3

-14.1

    Donations Paid

-

-

-2.4

-1.3

-1.0

    Miscellaneous Loss

-

-

-

-3.8

-1.0

    Gain/Loss onValuation of Confirmed Cont

2.6

6.2

-

-

-

    Gain/Loss on Bargain Purchase

-

8.6

-

-

-

    Miscellaneous Gain/Loss

23.6

58.8

-

-

-

    Other Non-Operating Income/Expense

-8.0

-5.5

-

-

-

    Gain under Equity Method

39.3

92.3

193.3

44.3

24.4

    Loss under Equity Method

-14.7

-14.1

-16.8

-14.5

-24.4

    Adjustment for Gain/Loss under Equity

0.0

0.0

-

-

-

    Adj. for Finance Income

0.0

0.0

0.0

-

-

    Adj. for Finance Expense

0.0

0.0

0.0

-

-

    Adj-Other Non-Operating Income/Expense

0.0

0.0

0.0

-

-

Net Income Before Taxes

266.2

336.2

357.6

99.0

57.8

 

 

 

 

 

 

Prov. for Income Taxes

62.7

99.9

77.2

23.6

23.8

Net Income After Taxes

203.5

236.3

280.4

75.5

34.0

 

 

 

 

 

 

    Minority Interest

-6.7

-12.6

-4.3

-2.3

6.1

Net Income Before Extra. Items

196.7

223.6

276.1

73.2

40.1

Net Income

196.7

223.6

276.1

73.2

40.1

 

 

 

 

 

 

Income Available to Com Excl ExtraOrd

196.7

223.6

276.1

73.2

40.1

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

196.7

223.6

276.1

73.2

40.1

 

 

 

 

 

 

Basic Weighted Average Shares

38.7

38.7

38.7

38.7

38.7

Basic EPS Excluding ExtraOrdinary Items

5.09

5.79

7.14

1.89

1.04

Basic EPS Including ExtraOrdinary Items

5.09

5.79

7.14

1.89

1.04

Dilution Adjustment

-

-

0.0

0.0

-

Diluted Net Income

196.7

223.6

276.1

73.2

40.1

Diluted Weighted Average Share

38.7

38.7

38.7

38.7

38.7

Diluted EPS Excluding ExtraOrd Items

5.09

5.79

7.14

1.89

1.04

Diluted EPS Including ExtraOrd Items

5.09

5.79

7.14

1.89

1.04

DPS-Common Stock

0.44

0.45

0.30

0.16

0.18

Gross Dividends - Common Stock

17.2

17.4

11.7

6.1

7.0

Normalized Income Before Taxes

266.2

336.2

383.0

102.4

57.7

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

62.7

99.9

82.7

23.6

22.2

Normalized Income After Taxes

203.5

236.3

300.3

78.8

35.5

 

 

 

 

 

 

Normalized Inc. Avail to Com.

196.7

223.6

296.0

76.5

41.6

 

 

 

 

 

 

Basic Normalized EPS

5.09

5.79

7.66

1.98

1.08

Diluted Normalized EPS

5.09

5.79

7.66

1.98

1.08

Interest Expense, Supplemental

46.0

43.2

33.5

38.0

47.4

Rental Expense, Supplemental

6.3

13.1

8.8

7.0

-

Advertising Expense, Supplemental

10.1

13.3

12.5

10.9

-

Depreciation, Supplemental

11.6

8.2

4.9

5.9

4.0

Amort of Intangibles, Suppleme

32.9

55.8

32.6

4.0

3.6

Amort of Goodwill

-

-

-

3.1

3.8

 

 

Annual Balance Sheet

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Restated Normal
31-Dec-2009

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate

1066.400024

1152

1134.9

1164.475

1259.55

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

    Cash & Cash Equivalents

501.0

339.1

176.2

149.1

206.2

    Current Fincl Instrm

224.1

134.6

16.9

2.5

33.0

    Trade Receivable

1,326.4

1,525.6

1,429.7

1,110.1

1,151.6

    Allow. for DA for Trade Receivable

-91.3

-89.8

-94.1

-87.0

-82.9

    Adj. for Trade Receivable

0.0

0.0

0.0

-

-

    Account Receivable

67.0

79.9

67.8

85.1

235.7

    Advance Payments

34.2

71.9

87.2

69.6

80.8

    Prepaid Expense

12.9

7.3

11.5

6.5

6.5

    Accrued Income

23.9

18.5

19.5

16.4

11.6

    Derivative Assets for Risk Hedge

9.6

15.4

7.2

7.7

94.2

    Deferred Taxes

-

-

-

34.2

30.8

    Other Current Assets

14.8

29.9

20.3

4.2

4.4

    Merchandises

563.5

490.3

640.2

307.9

384.3

    Finished Goods

22.9

18.6

6.1

0.4

4.0

    Raw Materials

14.8

12.2

12.4

0.7

5.9

    Works in Progress

0.0

-

-

0.9

1.1

    Supplies

0.1

0.3

0.4

0.0

0.0

    Goods in Transit

28.9

49.1

67.6

55.0

52.0

    Adj. for Inventories

0.0

0.0

0.0

-

-

Total Current Assets

2,752.8

2,703.0

2,468.9

1,763.3

2,219.4

 

 

 

 

 

 

    Securities Held to Maturities

-

0.1

0.1

-

-

    LT Finl Assets

-

-

-

0.0

0.1

    Non-Current Invmt Assets

-

-

-

25.3

19.3

    Overseas Invest.

-

-

-

153.1

139.0

    Other Invmt Assets

-

-

-

-

0.0

    Non-Current Securities Available-for-Sal

88.9

266.5

56.7

-

-

    Invmt in Properties

35.8

33.8

14.2

-

-

    Adj. for Non-Current Invmt Assets

0.0

0.0

0.0

-

-

    Non-Current Loans

129.8

129.6

133.2

163.2

134.4

    Invmt in Affiliates

579.4

560.7

680.1

456.7

361.9

    LT Guarantee Dep

-

-

-

33.7

19.0

    LT Prepaid Expense

-

-

-

3.2

3.1

    Other Non-Current Assets

10.3

13.7

19.7

-

-

    LT Trade Receivable

-

-

-

3.6

2.8

    Non-Current Deferred Income Taxes Assets

15.9

5.8

4.5

2.7

-

    Lands

14.6

13.7

18.6

18.1

15.3

    Lands-Reduction

-0.4

-

-

-

-

    Buildings

55.9

32.2

27.1

35.2

30.7

    Buildings-Depreciation

-10.5

-8.8

-8.0

-12.8

-8.9

    Structures

14.2

15.9

18.8

4.1

1.1

    Structures-Depreciation

-3.0

-2.0

-3.1

-0.3

-0.2

    Machineries & Equipments

43.9

18.9

19.0

5.2

2.9

    Machineries & Equipments-Depreciation

-15.1

-8.2

-6.6

-2.4

-1.8

    Vehicles

12.4

13.5

6.7

4.0

3.6

    Vehicles-Depreciation

-3.9

-3.3

-2.6

-1.6

-1.3

    Construction in Progress

9.7

21.1

17.1

7.7

3.5

    Other Property Plant & Equipment

18.4

21.7

20.4

15.6

11.4

    Other Tangibles-Depreciation

-11.4

-11.7

-13.0

-9.7

-7.4

    Other Tangibles-Reduction

-0.1

-0.2

-0.1

-

-

    Adj. for Property, Plant & Equipment

0.0

0.0

0.0

-

-

    Biologic Assets

40.7

33.8

18.2

-

-

    Industrial Property Rights

0.0

0.0

0.0

0.0

0.0

    Usufruct

22.2

21.0

20.5

-

-

    Foreign Resource Development Funds

758.3

378.9

227.3

-

-

    Other Intangibless

74.2

21.4

37.2

32.8

25.1

    Adj. for Intangibless

0.0

0.0

0.0

-

-

    Goodwill

15.9

18.2

18.9

7.1

9.0

Total Assets

4,648.8

4,289.1

3,793.7

2,707.7

2,982.0

 

 

 

 

 

 

    Current Trade Payable

1,263.7

1,155.7

1,235.4

1,096.4

1,041.7

    Current Borrowings

600.4

714.4

727.8

252.9

629.1

    Dividend Payable

-

0.0

0.0

0.0

0.0

    Other Payable

187.0

208.8

155.6

161.2

256.4

    Current Tax Liabilities

37.4

58.0

12.1

4.3

18.2

    Accrued Expense

24.9

33.1

23.8

17.3

19.1

    Advance from Customers, Current

36.1

54.0

49.8

19.4

28.4

    Unearned Income

0.0

0.0

0.1

0.1

0.1

    Guarantee Deposit Withheld

3.5

2.9

3.4

1.3

0.0

    Withheld

15.7

23.2

17.0

7.0

11.4

    Current Portion of Long-term Liabilities

96.7

172.2

115.2

163.1

99.7

    Derivative Liabilities for Risk Hedge

6.9

9.6

8.9

-

-

    Settlement Contract

-

-

-

4.8

12.9

Total Current Liabilities

2,272.4

2,432.0

2,349.0

1,727.7

2,116.9

 

 

 

 

 

 

    Bonds

84.1

34.7

116.0

77.0

31.7

    Non-Current Borrowings(1)

679.3

621.9

365.5

-

-

    Non-Current Borrowings

-

-

-

32.5

48.2

    Foreign Curr LTB

-

-

-

287.1

309.6

Total Long Term Debt

763.4

656.5

481.5

396.7

389.6

 

 

 

 

 

 

    LL Security Dep

-

-

-

3.7

2.9

    Non-Current Prov.s

1.5

3.3

15.0

-

-

    Other Non-Current Liabilities

5.3

5.2

5.6

0.2

0.2

    Deferred Income Taxes, LT Liabilities

86.5

11.6

29.7

12.1

10.1

    Retirement Resrv

-

-

-

21.3

18.4

    Minority Interests

137.7

13.5

-1.7

-10.9

-13.0

    Non-Current Fixed Benefit Liabilities

4.8

4.2

4.1

-

-

    Deposit-Retirement Insurance

-

-

-

-16.0

-13.3

    Transfer to National Pension Fund

-

-

-

-0.1

-0.1

Total Liabilities

3,271.5

3,126.4

2,883.2

2,134.8

2,511.6

 

 

 

 

 

 

    Capital Stock

181.7

168.2

170.8

166.4

153.9

    Capital Surplus

-

-

-

40.5

37.4

    Additional Paid in Capital

44.2

40.9

41.5

-

-

    Resv for Assets ReValt

35.0

32.4

32.9

33.6

31.1

    Other Capital Adj.

-0.6

-0.3

-0.2

-

-

    Other Capital Surplus1

-0.2

-

-

-

-

    Retained Earning Carried Forward

-

-

-

244.1

157.7

    Legal Reserve

-

-

-

20.7

18.5

    Voluntary Reserve

-

-

-

13.1

12.1

    Retained Earnings

1,028.6

779.2

585.5

-

-

    L-Sec for Sale V

-

-

-

2.7

1.8

    Capital Change, Equity Method

35.6

37.6

23.1

27.0

19.4

    Capital Change, Equity Method (Loss)

-10.7

-20.2

-18.4

-21.9

-12.2

    Gain/Loss on Valuation of Securities Ava

51.6

72.8

33.5

-

-

    Treasury Stock

-0.9

-0.8

-0.9

-0.8

-0.8

    ReValt Adj.

-0.5

-0.5

-0.5

-

-

    Other Capital Surplus

-

-

-

15.2

14.1

    Gains on Disposal of Treasury Stock

16.6

15.4

15.6

-

-

    Overseas Business Translation Credit

-3.1

37.9

27.6

32.3

37.4

    Adj. for Capital Surplus

0.0

0.0

0.0

-

-

    Adj. for Other Capital

0.0

0.0

0.0

-

-

    Adj.-Accum. Other Comprehensive Income

0.0

0.0

0.0

-

-

Total Equity

1,377.3

1,162.6

910.5

572.9

470.4

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

4,648.8

4,289.1

3,793.7

2,707.7

2,982.0

 

 

 

 

 

 

    S/O-Common Stock

38.7

38.7

38.7

38.7

38.7

Total Common Shares Outstanding

38.7

38.7

38.7

38.7

38.7

T/S-Common Stock

0.1

0.1

0.1

0.1

0.1

Deferred Revenue, Current

36.1

54.0

49.9

19.5

28.5

Full-Time Employees

-

706

655

623

651

Number of Common Shareholders

-

28,613

19,329

20,679

21,050

Long-Term Debts Due in 1 Year

96.7

-

-

163.1

99.7

Long-Term Debts Due in 2 Years

-

-

-

98.8

187.1

Long-Term Debts Due in 3 Years

374.0

-

-

172.5

70.7

Long-Term Debts Due in 4 Years

-

-

-

18.0

57.1

Long-Term Debts Due in 5 Years

281.7

-

-

26.9

34.6

Long-Term Debts Due Remaining

107.7

-

-

80.7

40.2

Total Long Term Debt, Supplemental

860.0

-

-

560.1

489.4

Operating Leases due in Year 1

-

-

-

1.6

2.0

Operating Leases due in Year 2

-

-

-

1.6

2.0

Operating Leases due in Year 3

-

-

-

1.6

2.0

Operating Leases due in Year 4

-

-

-

1.2

1.9

Operating Leases Remaining

-

-

-

0.8

2.4

Total Operating Leases, Supplemental

-

-

-

6.8

10.2

 

 

Annual Cash Flows

 

Financials in: USD (mil)

 

 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Dec-2012

Updated Normal
31-Dec-2011

Restated Normal
31-Dec-2011

Updated Normal
31-Dec-2009

Reclassified Normal
31-Dec-2009

Filed Currency

KRW

KRW

KRW

KRW

KRW

Exchange Rate (Period Average)

1126.848795

1107.891393

1156.281981

1276.385219

1100.562842

Auditor

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified

Unqualified

Unqualified

 

 

 

 

 

 

Net Income

203.5

236.3

280.4

75.5

34.0

    Depreciation

13.3

8.6

4.9

5.9

4.0

    Amort. of Intangibless

33.0

55.8

32.6

7.2

7.4

    Amort-Bad Debt Exp

-

-

-

1.0

26.3

    Amort-Otr Bad Debt E

-

-

-

16.7

7.6

    Amort-Bond Discount

-

-

-

0.1

0.1

    Payment for Retirement Allow., ONCI

6.3

5.1

4.5

4.6

5.9

    Interest Expenses

46.0

43.6

33.5

-

-

    Losses on Foreign Currency Translation

91.4

56.8

25.9

41.6

131.4

    Loss-Disp. of Trade Receivables

-

-

-

14.5

35.2

    L-Mkt Secs Disposal

-

-

-

0.0

0.0

    L-Contract Valuation

-

-

-

4.3

14.1

    L-Derivatives Valu

-

-

-

8.4

116.7

    L-Sec for Sale Disp

-

-

-

-

0.6

    Loss-Disposal of Other Investment Assets

-

-

-

0.5

-

    L-Tangible Asst Disp

-

-

-

0.3

0.2

    L-Intangible Asst Disp

-

-

-

-

0.0

    Loss under Equity Method

-

-

-

14.5

24.4

    Miscellaneous Gain

-

-

-

-0.2

-

    Miscellaneous Loss

-

-

-

0.7

0.0

    Rec. of Expense of Allow. for DA

-9.0

-

-

-

-

    Interest Income

-25.6

-15.2

-15.2

-0.1

-

    G-Derivatives Valu

-

-

-

-5.2

-24.7

    Gain-Settlement Contract

-

-

-

-7.4

-107.8

    G-Inv.Asset Disp

-

-

-

-1.0

-0.5

    Gain-Disp. of Securities/Equity Method

-

-

-

-0.7

-

    G-Tangible Asst Disp

-

-

-

-0.1

-4.0

    Gain under Equity Method

-

-

-

-44.3

-24.4

    Reversal of Doubtful Accounts

-

-

-

-0.1

0.0

    Gains on Foreign Currency Translation

-116.5

-48.5

-36.4

-54.1

-98.2

    Other Gain or Loss Adj.

-25.2

-57.7

-33.2

-

-

    Adj. for Non-Cash Items

0.0

0.0

0.0

-

-

    Trade Receivables

273.4

-104.1

26.4

118.3

-23.3

    Accrued Income

-

-

-

-3.5

-4.3

    Account Receivables

15.2

-9.5

24.2

155.0

-133.1

    Prepaid Expenses

-

-

-

0.6

-4.0

    Advance Payments

37.3

14.9

-14.6

16.3

40.3

    Other Quick Assets

-

-

-

2.2

-13.8

    Other Operating Assets

3.6

-8.1

-11.3

-

-

    Inventory

-34.6

164.4

-337.1

185.5

-136.6

    Deferred Taxes-Asset

-

-

-

-3.3

1.5

    Trade Payable

4.7

-104.7

123.9

-27.7

175.2

    Other Payable

11.5

31.9

-22.9

-105.9

78.4

    Accrued Expenses

-

-

-

-3.1

1.9

    Accrued Income Taxes

-

-

-

-14.0

20.4

    Unearned Income

-

-

-

0.0

0.1

    Advance from Customers

-17.3

2.8

26.8

-10.3

13.1

    Deposits Withheld

-

-

-

-4.9

-4.5

    Security Deposits

-

-

-

1.2

0.0

    Deferred Income Tax Credit, A/L

-

-

-

1.1

-2.4

    Other Non-Current Liabilities

-

-

-

0.3

0.0

    Other Operating Liabilities

-12.5

-1.0

12.2

-

-

    Nation Pension Fnd

-

-

-

0.0

0.1

    Payment for Retirement Allow.

-3.1

-1.0

-7.8

-2.9

-5.7

    Plan Assets

-4.6

-6.0

-1.4

-

-

    Prov.s

-1.0

1.6

14.5

-

-

    Retirement Insurance

-

-

-

-1.4

-2.8

    Reserve-Severance & Retirement Benefit

-

-

-

-0.5

-0.3

    Adj. for Operating Assets & Liabilities

0.0

0.0

0.0

-

-

    Cash-Interest Received

27.3

15.7

11.8

-

-

    Cash-Interest Paid

-61.1

-40.6

-38.6

-

-

    Cash-Dividend Income

28.3

36.2

10.9

-

-

    Cash-Tax Paid

-79.0

-82.4

-88.1

-

-

Cash from Operating Activities

405.1

195.2

25.9

385.8

148.5

 

 

 

 

 

 

    Disposal-ST Investment Assets

-

-

-

32.2

148.3

    Decrease-LT Financial Assets

-

-

-

0.1

0.3

    Decrease in Fincl Instruments

206.3

15.9

15.1

-

-

    Dec-LT Loans

-

-

-

69.7

64.9

    Decrease in Loans

73.1

26.2

33.6

-

-

    Decrease in Guarantee Deposit

4.8

15.9

3.3

4.0

0.8

    Disposal of Securities Available-for-Sal

255.6

0.3

5.8

-

-

    Dividend Income-Equity Method Affiliates

-

-

-

2.5

3.7

    Dec-Investment Secs

-

-

-

1.5

1.7

    Dec-Affil. Investmnt

-

-

-

0.8

-

    Disposal-Investment Assets

-

-

-

2.0

-

    Disposal of Investment in Associates&Sub

22.3

290.4

53.4

-

-

    Disposal of Other Investment Assets

0.0

17.0

-

-

-

    Decrease-Overseas Investment

-

-

-

35.9

14.7

    Disp-Land

-

-

-

0.5

0.0

    Disp-Machinery

-

-

-

0.2

0.4

    Disp-Vehicles

-

-

-

0.1

10.2

    Disposal-Construction in Progress

-

-

-

0.4

0.0

    Disp-Othr Tang.Asset

-

-

-

0.1

1.0

    Disposal of Property, Plant and Equipmen

3.8

55.4

1.5

-

-

    Disposal-Business Segment

-

-

-

-

24.7

    Disposal-Other Intangible Assets

-

-

-

0.1

0.0

    Disposal of Intangible Assets

0.1

16.4

-

-

-

    Increase-ST Investment Assets

-

-

-

-7.6

-105.3

    Inc-LT Loans

-

-

-

-113.5

-132.4

    Increase in Loans

-88.0

-26.6

-14.2

-

-

    Increase in Guarantee Deposit

-1.6

-10.8

-3.6

-4.5

-5.0

    Increase-LT Financial Assets

-

-

-

0.0

0.0

    Purchase of LT&Current Fincl Instrm

-280.3

-106.9

-0.3

-

-

    Purchase of Sec. Available-for-Sale

-6.4

-0.6

-4.6

-4.4

-8.0

    Purchase of Invmt in Afflt&Subsidiary

-247.2

-165.3

-105.7

-32.1

-108.2

    Purchase of Other Invmt Assets

-0.2

-13.6

-

-

-0.1

    Inc-Natural Resources Develop. Cost

-

-

-

-38.4

-83.5

    Acq-Land

-

-

-

-

0.0

    Acq-Building

-

-

-

-0.1

-0.2

    Acq-Structures

-

-

-

-0.4

-

    Acq-Machinery

-

-

-

-1.0

0.0

    Acq-Vehicles

-

-

-

-0.3

-0.2

    Acq-Other Tang.Asset

-

-

-

-1.1

-2.7

    Acq-Constructn Prog

-

-

-

-7.2

-14.7

    Purchase of Tangibles

-42.2

-112.2

-14.6

-

-

    Purchase of Biological Assets

-8.6

-

-

-

-

    Acq-Industr.Patent

-

-

-

0.0

-

    Purchase of Intangibless

-123.8

-148.5

-41.6

-

-

    Acq-Other Intangible

-

-

-

-4.3

-6.4

Cash from Investing Activities

-232.4

-147.0

-72.0

-64.9

-196.1

 

 

 

 

 

 

    Inc-LT Borrowing

-

-

-

170.7

230.5

    Inc-Bonds

-

-

-

70.2

-

    Increase-Security Deposit Received

-

-

-

-

0.4

    Increase in Fincl Liabilities

5,192.0

10,912.0

5,436.5

-

-

    Cash Inflow from Other Financing Act.

-

0.5

5.9

0.0

1.2

    Dec-Curr LT Liabs

-

-

-

-146.1

-10.7

    Decrease in Fincl Liabilities

-5,214.5

-10,780.1

-5,373.7

-

-

    Dec-ST Borrowings

-

-

-

-382.6

-81.7

    Dec-LT Borrowings

-

-

-

-55.9

-10.0

    Cash Outflow from Other Financing Act.

-

-0.4

-2.0

-

-0.3

    Dividend Paid

-17.2

-12.2

-6.7

-6.3

-13.5

    Consolid Scope Adj

-

-

-

0.7

-

    Cash Incflow of Other Finance Activities

-0.3

-

-

-

-1.2

    Cash Outflow Financing Activities Adj.

-

-

-

-2.3

-

Cash from Financing Activities

-40.0

119.8

60.0

-351.7

114.6

 

 

 

 

 

 

Foreign Exchange Effects

-5.2

4.2

2.7

-36.7

38.9

Net Change in Cash

127.4

172.2

16.7

-67.4

105.9

 

 

 

 

 

 

Net Cash - Beginning Balance

346.7

180.5

156.2

203.4

130.0

Net Cash - Ending Balance

474.1

352.6

172.9

136.0

235.9

    Cash Interest Paid

61.1

40.6

38.6

-

-

    Cash Taxes Paid

79.0

82.4

88.1

-

-

 

 

Financial Health

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)           

Key Indicators USD (mil)

 

Quarter
Ending
31-Mar-2013

Quarter
Ending
Yr Ago

Annual
Year End
31-Dec-2012

1 Year
Growth

3 Year
Growth

5 Year
Growth

Total Revenue1 (?)

2,659.2

-6.77%

11,353.6

-8.53%

7.41%

7.74%

Operating Income1 (?)

55.6

-10.62%

182.4

26.43%

3.40%

15.48%

Income Available to Common Excl Extraord Items1 (?)

52.9

-13.94%

196.7

-10.53%

33.37%

35.86%

Basic EPS Excl Extraord Items1 (?)

1.37

-13.94%

5.09

-10.53%

33.37%

35.86%

Capital Expenditures2 (?)

29.6

-31.32%

174.6

-31.91%

42.87%

26.80%

Cash from Operating Activities2 (?)

79.1

-53.66%

405.1

111.09%

-2.50%

87.28%

Free Cash Flow (?)

48.2

-61.22%

243.6

-

-15.14%

-

Total Assets3 (?)

4,626.6

9.95%

4,648.8

0.33%

16.28%

16.80%

Total Liabilities3 (?)

3,252.7

10.78%

3,271.5

-3.14%

11.96%

14.40%

Total Long Term Debt3 (?)

806.6

31.02%

763.4

7.63%

20.79%

22.11%

Employees3 (?)

-

-

-

-

-

-

Total Common Shares Outstanding3 (?)

38.7

0.00%

38.7

0.00%

0.00%

0.00%

1-ExchangeRate: KRW to USD Average for Period

1084.553644

 

1126.848795

 

 

 

2-ExchangeRate: KRW to USD Average for Period

1084.553644

 

1126.848795

 

 

 

3-ExchangeRate: KRW to USD Period End Date

1112.840072

 

1066.400024

 

 

 

Key Ratios

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Profitability

Gross Margin (?)

4.81%

4.50%

4.65%

5.76%

5.56%

Operating Margin (?)

1.61%

1.16%

1.61%

1.80%

1.85%

Pretax Margin (?)

2.34%

2.66%

2.87%

1.22%

0.56%

Net Profit Margin (?)

1.73%

1.77%

2.22%

0.91%

0.39%

Financial Strength

Current Ratio (?)

1.21

1.11

1.05

1.02

1.05

Long Term Debt/Equity (?)

0.55

0.56

0.53

0.69

0.83

Total Debt/Equity (?)

1.06

1.33

1.45

1.42

2.38

Interest Coverage (?)

269,191.12

1,439,568.67

-

-

-

Management Effectiveness

Return on Assets (?)

4.63%

5.66%

8.69%

2.79%

1.24%

Return on Equity (?)

15.79%

20.89%

37.55%

14.84%

8.08%

Efficiency

Receivables Turnover (?)

8.04

8.27

9.84

6.96

8.39

Inventory Turnover (?)

16.81

16.06

19.19

16.62

19.08

Asset Turnover (?)

2.59

3.03

3.86

2.99

3.74

Market Valuation USD (mil)

P/E (TTM) (?)

5.81

.

Enterprise Value2 (?)

1,957.5

Price/Sales (TTM) (?)

0.10

.

Enterprise Value/Revenue (TTM) (?)

0.17

Price/Book (MRQ) (?)

0.81

.

Enterprise Value/EBITDA (TTM) (?)

8.84

Market Cap as of 19-Jul-20131 (?)

1,099.5

.

 

 

1-ExchangeRate: KRW to USD on 19-Jul-2013

1124.558404

 

 

 

2-ExchangeRate: KRW to USD on 31-Mar-2013

1112.840072

 

 

 

 

 

Annual Ratios

 

Financials in: USD (mil) 

Except for share items (millions) and per share items (actual units)



 

 

31-Dec-2012

31-Dec-2011

31-Dec-2010

31-Dec-2009

31-Dec-2008

Financial Strength

Current Ratio (?)

1.21

1.11

1.05

1.02

1.05

Quick/Acid Test Ratio (?)

0.90

0.83

0.69

0.74

0.73

Working Capital1 (?)

480.4

271.0

119.9

35.5

102.5

Long Term Debt/Equity (?)

0.55

0.56

0.53

0.69

0.83

Total Debt/Equity (?)

1.06

1.33

1.45

1.42

2.38

Long Term Debt/Total Capital (?)

0.27

0.24

0.22

0.29

0.25

Total Debt/Total Capital (?)

0.51

0.57

0.59

0.59

0.70

Interest Coverage (?)

269,191.12

1,439,568.67

-

-

-

Payout Ratio (?)

8.72%

7.80%

4.24%

8.27%

17.52%

Effective Tax Rate (?)

23.56%

29.71%

21.60%

23.79%

41.13%

Total Capital1 (?)

2,837.8

2,705.8

2,235.0

1,385.5

1,588.7

 

 

 

 

 

 

Efficiency

Asset Turnover (?)

2.59

3.03

3.86

2.99

3.74

Inventory Turnover (?)

16.81

16.06

19.19

16.62

19.08

Days In Inventory (?)

21.71

22.73

19.02

21.97

19.13

Receivables Turnover (?)

8.04

8.27

9.84

6.96

8.39

Days Receivables Outstanding (?)

45.38

44.13

37.10

52.44

43.48

Revenue/Employee2 (?)

-

17,197,378

19,352,865

14,232,994

13,755,105

Operating Income/Employee2 (?)

-

199,834

311,428

256,245

254,545

EBITDA/Employee2 (?)

-

287,028

369,715

273,749

264,683

 

 

 

 

 

 

Profitability

Gross Margin (?)

4.81%

4.50%

4.65%

5.76%

5.56%

Operating Margin (?)

1.61%

1.16%

1.61%

1.80%

1.85%

EBITDA Margin (?)

2.00%

1.67%

1.91%

1.92%

1.92%

EBIT Margin (?)

1.61%

1.16%

1.61%

1.80%

1.85%

Pretax Margin (?)

2.34%

2.66%

2.87%

1.22%

0.56%

Net Profit Margin (?)

1.73%

1.77%

2.22%

0.91%

0.39%

COGS/Revenue (?)

95.19%

95.50%

95.35%

94.24%

94.44%

SG&A Expense/Revenue (?)

3.11%

3.25%

2.93%

3.80%

3.71%

 

 

 

 

 

 

Management Effectiveness

Return on Assets (?)

4.63%

5.66%

8.69%

2.79%

1.24%

Return on Equity (?)

15.79%

20.89%

37.55%

14.84%

8.08%

 

 

 

 

 

 

Valuation

Free Cash Flow/Share2 (?)

6.30

-1.63

-0.80

9.44

0.92

Operating Cash Flow/Share 2 (?)

11.07

4.86

0.68

10.94

3.36

1-ExchangeRate: KRW to USD Period End Date

1066.400024

1152

1134.9

1164.475

1259.55

2-ExchangeRate: KRW to USD Average for Period

1066.400024

1152

1134.9

1164.475

1259.55

 

Current Market Multiples

Market Cap/Earnings (TTM) (?)

5.82

Market Cap/Equity (MRQ) (?)

0.81

Market Cap/Revenue (TTM) (?)

0.10

Market Cap/EBIT (TTM) (?)

6.68

Market Cap/EBITDA (TTM) (?)

5.02

Enterprise Value/Earnings (TTM) (?)

10.26

Enterprise Value/Equity (MRQ) (?)

1.42

Enterprise Value/Revenue (TTM) (?)

0.17

Enterprise Value/EBIT (TTM) (?)

11.77

Enterprise Value/EBITDA (TTM) (?)

8.84

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.82

UK Pound

1

Rs.92.97

Euro

1

Rs.80.73

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)