Nov 3, 2023

3Q 2023 Earnings Release

The business result for the 3rd quarter of 2023 is currently under the audit process, however this is

presented purely for the purposes of investors' convenience.

Hence, please be advised that some of the contents may be altered in the course of audit.

Forecasts and projections contained in this material are based on current business environments and management strategies, so these may differ from the actual result upon changes and unaccounted variables.

  1. 3Q 2023 Business Results
  2. Divisional Results
  3. Appendix

3Q 2023 Business Results

Income Statements

(Unit: KRW bn)

Classification

23.3Q

23.2Q

QoQ

22.3Q

YoY

Sales

1,507.0

1,578.1

-4.5%

1,887.1

-20.1%

Operating Profit

84.2

107.9

-22.0%

230.5

-63.5%

(5.6%)

(6.8%)

(12.2%)

EBITDA

144.6

166.8

-13.3%

289.0

-50.0%

(9.6%)

(10.6%)

(15.3%)

Pre-tax Income

115.8

140.5

-17.6%

280.0

-58.6%

(7.7%)

(8.9%)

(14.8%)

Net Income

103.6

117.3

-11.7%

210.8

-50.9%

(6.9%)

(7.4%)

(11.2%)

Equity Income

26.5

23.9

10.9%

24.2

9.5%

* Net Income is based on Controlling interests.

1

3Q 2023 Business Results

Balance Sheet

(Unit: KRW bn)

Classification

23.3Q

22

Change

(End)

Asset

7,941.4

7,719.2

2.9%

(Cash and

(604.3)

(567.3)

(6.5%)

equivalents)

Liabilities

2,207.0

2,065.8

6.8%

(Debt)

(772.8)

(728.8)

(6.0%)

Shareholder's

5,734.4

5,653.4

1.4%

Equity

Liabilities/

38.5%

36.5%

1.9%p

Equity (%)

Financial Ratios

Classification

23.3Q

22

Change

(End)

Debt/Equity

13.5%

12.9%

0.6%p

Net Debt

2.9%

2.9%

0.1%p

/Equity

Interest

12.8

39.3

-26.5

Coverage

Ratio (x)

ROE

8.3%

19.1%

-10.8%p

ROA

6.0%

13.0%

-7.0%p

2

Divisional Results & Outlook

(Unit: KRW bn)

Synthetic

Rubbers 655.9

576.4

547.0

Sales

481.8

507.1

Operating Profit

22.3Q

22.4Q

23.1Q

23.2Q

23.3Q

84.0

9.1

33.6

32.9

15.0

(%)

(12.8%)

(1.9%)

(5.8%)

(6.0%)

(3.0%)

3Q Earnings Review

4Q Outlook

  • Due to weak demand in downstream industries, sales price increases was insufficient compared to raw material price increases, and sales and profitability decreased.
  • NB Latex profitability declined due to intensifying supplier competition.
  • BD: By adjusting the cracker operation rate and increasing light feed input, production is limited, but the price is expected to remain weak due to uncertainty in demand.
  • Product demand is expected to continue to be sluggish, but profitability will be improved by strengthening the portfolio by market/product.

3

Divisional Results & Outlook

(Unit: KRW bn)

Synthetic

Resins

332.1

325.5

347.4

317.4

300.5

Sales

22.3Q

22.4Q

23.1Q

23.2Q

23.3Q

Operating Profit

-6.2

-5.6

3.2

1.1

1.2

(-1.9%)

(-1.7%)

(0.9%)

(0.4%)

(0.4%)

(%)

3Q Earnings Review

  • Product price increases were limited due to sluggish demand and new ABS volume from China.

4Q Outlook

  • SM: The price is expected to remain weak due to inflow of new factory volumes from China.
  • Market prices are expected to weaken due to concerns about economic downturn and sluggish demand.

4

Divisional Results & Outlook

(Unit: KRW bn)

Phenol

Derivatives

469.2 459.5

Sales

410.8

370.3

337.0

22.3Q

22.4Q

23.1Q

23.2Q

23.3Q

Operating Profit

21.8

19.0

11.3

6.0

-4.1

(4.6%)

(4.1%)

(2.8%)

(1.6%)

(1.2%)

(%)

3Q Earnings Review

  • Decreased sales and profitability due to delayed recovery in demand for major products.

4Q Outlook

  • Sales volume is expected to decrease slightly due to regular maintenance, but protect profitability by adjusting sales volume of products.

5

Divisional Results & Outlook

(Unit: KRW bn)

EPDM/TPV

195.8

164.1

167.7

149.9

154.4

Sales

22.3Q

22.4Q

23.1Q

23.2Q

23.3Q

Operating Profit

50.8

15.4

21.4

33.4

23.4

(%)

(25.9%)

(10.3%)

(13.0%)

(19.9%)

(15.2%)

3Q Earnings Review

  • Product spreads narrowed due to weak demand during off- season and profitability decreased.

4Q Outlook

  • Sales volume will increase compared to the previous quarter, but profitability is expected to slightly decrease due to regular maintenance and operation rate adjustment.

6

Divisional Results & Outlook

234.1

Others

105.6

Sales

Specialty Chemicals

82.0

Energy

Others

46.5

22.3Q

Operating Profit(%)

80.1

Energy/Specialty

(34.2%)

Chemicals/Others

228.8

222.6

(Unit: KRW bn)

208.0

83.3

82.6

175.7

109.4

103.8

103.9 90.3

57.5

35.5

41.6

49.7

36.4

41.1

22.4Q

23.1Q

23.2Q

23.3Q

76.3

60.7

34.5

48.7

(33.4%)

(27.3%)

(19.6%)

(23.4%)

3Q Earnings Review

  • Energy: Improved profitability due to increased sales despite a slight decline in SMP.

4Q Outlook

  • Energy: Sales volume and profitability are expected to remain similar to the previous quarter.

7

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Disclaimer

Kumho Petro Chemical Co. Ltd. published this content on 03 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2023 04:58:52 UTC.