Nexen Tire Driving Tomorrow NEXEN. Business Management Team

Transcription

1 Nexen Tire Business Management Team

2 I. Company Overview II. Business Performance III. China 1

3 I. Company Overview II. Business Performance III. China 2

4 Company Overview HQ & Factory Yangsan city, Kyongsangnam-do, Korea Asset billion won (Mar ) Capital Stock Products Capacity 52.7 billion won (common stock 9,492 thousand, preferred stock 650 thousand) RADIAL TIRE (PCR, SUV, LTR) 17.1 million units / year (2009E) HQ & PLANT Seoul Office Distribution Center Employees 2,261 (Dec. 31, 2008) Affiliates NEXEN CORPORATION KNN NEXEN ENGINEERING INC NEXEN TECH NEXEN TIRE AMERICA INC NEXENTIRE EUROPE GMBP QINGDAO NEXEN TIRE CORP 3

5 Company History 2000 s Established a company in Germany, NEXENTIRE EUROPE GMBH Awarded a prize for exporting over US$400 million Start to build new plant in Qingdao, China Established a corporate in the U.S. (NEXEN TIRE AMERICA., Inc.) Registered a patent for nano-compound rubber production Start operating the second plant at YQ and launched N Clear off BIAS tires business Restructuring of high value product Mix (UHPT & SUV) Awarded the best prize for Fiscal Transparency Launched brand new company name NEXENTIRE CORP 1990 s 1980 s s s Taken over by Heunga Tire Engineering Commence the liquidation process because of Woosung Group Bankruptcy Developed the nation s first V-shape, rotation (unidirectional) tire Forged technological alliance with OHTSU Tire & Rubber in Japan Set up Michelin Korea Tire, a joint venture company (50:50) Construction work of Yangsan radial tire factory started Manufactured the first-ever motor vehicle tires in Korea Heung Ah Rubber Industry established 4

6 Stock Information Shareholders Equity Etc. 8% 28.2% 31.6% NEXEN CORPORATION Hangaram SSB-EUF 3.9% 4.4% Kang Ho-chan 10.8% 21.1% Kang Byung-joong The largest shareholder owns 63.4% shares including NEXEN CORP. Stock Information Market : Stock Market Market Price : 5,320 won Total Amount : billions won Shares Outstanding : common stock 9,492,026 preferred stock 650,000 (1 Jul. 2009) 5

7 I. Company Overview II. Business Performance III. China 6

8 Financial Result Balance Sheet (KRW Billion) Q 2008 Changes Assets Current Assets Quick Assets Inventories (Cash and Cash Equivalents) Non-current Assets Liabilities Current Liabilities Non-current Liabilities (Debt) Shareholders Equity

9 Financial Result Income Statement (KRW Billion) Q Q Q YoY QoQ Net Sales Gross Profit Margin P 6.0P Operating Profit Margin P 8.7P Non-Op. Income (Loss) Ordinary Profit Depreciation EBITDA Margin P 8.2P 8

10 Sales Performance Sales by Segment (KRW Billion) <Sales by Segment> Net Sales Q Q Q YoY 40.1 QoQ % 5.7% 4.1% 6.0% 5.3% 16.0% 16.1% 17.8% 14.2% 10.9% Export Domestic % 79.2% 78.1% 79.8% 83.8% - RE OE FX Rate 1,412 1, Q 08 2Q 08 3Q 08 4Q 09 1Q EX(RE) Domestic(RE) Domestic(OE) 9

11 Sales Performance Export by Region (KRW Billion) <Export by Region> Q Q Q YoY QoQ 28.4% 26.0% 30.3% 30.9% 33.3% Net Sales Export % 31.2% 33.4% 32.7% 30.8% N. America Europe % 42.8% 36.3% 36.5% 35.9% Others Q 08 2Q 08 3Q 08 4Q 09 1Q N. America Europe Others 10

12 Sales Performance UHPT Sales (KRW Billion, 000units) Q Q Q YoY QoQ UHPT Sales UHPT Volume , % / Net Sales 32.7% 31.4% 36.4% 3.7P 1.3P % / Total Volume 24.7% 24.4% 27.0% 2.3P 0.3P Parents Product Only 36.4% 36% 34.4% 31.4% 32.7% Others 21.6% <UHP by Region> Europe 25.2% N. America 53.2% 08.1Q 08.2Q 08.3Q 08 4Q 09 1Q Export Only, KRW-based 11

13 Sales Performance Annual Sales Volume Annual ASP (000 units) (KRW, %) Growth rate 11.2% 17.9% Sales Volume 17, % 7% 5% 12,450 14,147 15,141 ASP 29,987 32,097 33,705 37,504 44,249 10,

14 Raw Material Raw Material Prices ($/TON) 4,500 3,500 2,500 1, Q 07 2Q 07 3Q 07 4Q 08 1Q 08 2Q 08 3Q 08 4Q 09 1Q N/R S/R C/B T/CORD S/CORD Etc. Total 13

15 Raw Material Raw Material Prices ($/TON) Q Q Q YoY QoQ Natural Rubber 1,860 2,973 2, Synthetic Rubber 1,703 2,526 2, Carbon Black 833 1,466 1, T/CORD 4,229 4,211 4, S/CORD 1,745 1,927 1, Etc. 1,474 1,807 1, Total 1,594 2,245 1,

16 Financial Result SG&A Expenses (KRW Billion) Q Q Q YoY QoQ SG&A Expenses % 11.9% - Salaries % 11.0% - Advertising % 35.5% - R&D % 2.0% % / Net Sales 1.7% 1.8% 1.8% - Export Transportation % 16.2% - Others % 9.8% 15

17 Financial Result Non-Operating Income (Loss) (KRW Billion) Q Q Q YoY QoQ Non-Operating Income (Loss) % 62.1% - Foreign Currency Transaction Gain (Loss) % 75.8% - Foreign Currency Translation Gain (Loss) % 74.2% - Interest Expenses % 3.3% - Equity Method Losses % 64.9% - Currency Swap Gain (Loss) % 79.4% - Others % 51.0% 16

18 I. Company Overview II. Business Performance III. China 17

19 China Investment Investment Plan 2 nd + 1 st STEP 2010 Capa PCR, LTR 15,000 units/day (5.25 million units/year) 2 nd STEP ~ st STEP 9,000 units/day (3.15 million units/year) Investment : US$ 97 million ~ ,000 units/day (2.10 million units/year) Investment : US$ 98 million 3 rd STEP Investment will be implemented as a result of the previous step. Net Sales % of Sales Operating Profit billion won Export 90% Domestic 10% billion won 2009(E) 94.6 billion won Export 74% Domestic 26% 0.1 billion won 18

20 China Financial Result Income Statement (RMB Million) Q Q Q YoY QoQ Net Sales Gross Profit Margin P 16.1P Operating Profit Margin P 19.7P Ordinary Profit Depreciation EBITDA Margin P 145.5P 19

21 China Sales Performance Sales Growth (RMB Million) Q Q Q Q Q Sales by Segment <Sales by Segment> Domestic (RE) 20.2% Others 9.7% <Export by Region> N. America 25.2% EX(RE) 79.8% Europe 46.4% S. America 18.7% 20

22 # Income Statement [Korea] (KRW Billion) Net Sales Cost of Goods Sold Gross Profit SG&A Operation Profit Non-Operating Income Non-Operating Expenses Ordinary Profit Income Taxes Net Income

23 # Balance Sheet [Korea] (KRW Billion) Asset Current Assets Quick Assets Inventories Non-Current Assets Investment Assets Property & Equipment Intangible Assets Liabilities Current Liabilities Non-current Liabilities Capital

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