DL : 2023 3Q Earnings Results

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In 3Q, DL Holdings posted KRW 12 bn(QoQ turned to profit) in operating profit, thanks to DL Chemical's performance improvement, Cariflex's sales volume increase and high season impact of DL Energy, despite Kraton's continued losses due to delay in demand recovery

Net profit posted a deficit of KRW -50.9 due to the impact of financial costs, etc.

	3Q23	2Q23		3Q22		3Q23 YTD
	Change	Change
Sales	1,264.4	1,218.8	+45.6	1,489.8	-225.4	3,770.6
Operating Profit	12.0	-7.1	+19.1	169.6	-157.6	73.9
EBITDA	119.4	101.4	+18.0	273.7	-154.3	394.9
Net Profit	-50.9	-89.9	+39.0	-36.8	-14.1	-164.4

			3Q23	2Q23		3Q22		3Q23 YTD
					Change		Change
		Sales	1,264.4	1,218.8	+45.6	1,489.8	-225.4	3,770.6
		DL(Separate)	5.4	8.4	-3.0	5.7	-0.3	94.3
		DL Chemical(Separate)	405.6	337.1	+68.5	454.4	-48.8	1,166.9
		Kraton	602.4	659.2	-56.8	742.2	-139.8	1,924.5
		Cariflex	70.5	53.2	+17.3	77.4	-6.9	180.4
		DL Energy	37.2	18.8	+18.4	52.4	-15.2	100.3
		GLAD	27.3	26.2	+1.1	27.1	+0.2	74.7
		DL Motors	81.1	88.2	-7.1	85.2	-4.1	254.9
		Others / Consolidated	34.9	27.7	+7.2	45.4	-10.5	-25.4
		Operating Profit	12.0	-7.1	+19.1	169.6	-157.6	73.9
		DL(Separate)	1.5	3.3	-1.8	0.2	+1.3	81.5
		DL Chemical(Separate)	18.2	15.3	+2.9	24.3	-6.1	49.6
		Kraton	-65.6	-46.3	-19.3	74.2	-139.8	-102.9
		Cariflex	13.6	8.6	+5.0	17.3	-3.7	33.4
		DL Energy	29.7	15.5	+14.2	37.8	-8.1	83.3
		GLAD	8.4	5.6	+2.8	9.1	-0.7	18.1
		DL Motors	0.7	1.0	-0.3	0.5	+0.2	1.4
		Others / Consolidated	5.5	-10.1	+15.6	6.2	-0.7	-90.5
	Equity Method Investment	-3.7	-44.2	+40.5	-55.9	+52.2	-56.8
		NetProfit	-50.9	-89.9	+39.0	-36.8	-14.1	-164.4
		Controlling	-51.6	-82.2	+30.6	-37.0	-14.6	-162.5

6,000

5,000

4,000

3,000

2,000

1,000

-

10,000

8,000

6,000

4,000

2,000

-

1,000

800

600

400

200

-

5.3%

4.5% 4.5%

454.4

405.6

337.1

3Q22 2Q23 3Q23

Sales OP Margin

10.0%
-7.0%	-10.9%
742.2
659.2	602.4

3Q22	2Q23	3Q23
		Sales	OP Margin
22.4%		16.2%	19.3%

77.4

70.5

53.2

3Q22		2Q23	3Q23
		Sales OP Margin

Sales	405.6 (QoQ +20%, YoY -11%)
Operating Profit	18.2 (QoQ +19%, YoY -25%)	* EBITDA 34.4

PE's performance improved amid weak global demand due to the development and sales of high value-added products, the base effect of regular maintenance in the previous quarter

PB's earnings declined due to weak demand for lubricants and rising raw material prices

Sales	602.4(QoQ -9%,YoY-19%)
OperatingProfit	-65.6(QoQ-42%,YoYrevertedtoloss) *EBITDA -4.1

Kraton underperformed due to Europe regional demand recovery delays and raw material prices continuing the impact of negative lagging

Sales	70.5 (QoQ +33%, YoY -9%)
Operating Profit	13.6 (QoQ +58%, YoY -21%)	* EBITDA 22.7

Sales and earnings improved as customer's inventory adjustment entered the final stage

800

600

400

200

-

400

300

200

100

-

1,000

800

600

400

72.1% 82.4% 79.8%

52.4

			37.2
	18.8
3Q22		2Q23	3Q23
		Sales OP Margin

33.6%		30.8%
	21.4%
27.1	26.2	27.3

3Q22	2Q23	3Q23
	Sales OP Margin
0.6%	1.1%	0.9%
85.2	88.2	81.1

-30.0%

3Q22		2Q23	3Q23
		Sales OP Margin

Sales	37.2 (QoQ +98%, YoY -29%)
Operating Profit	29.7 (QoQ +92%, YoY -21%)

Strong performance thanks to stable business operations of domestic and overseas assets

Sales	27.3 (QoQ +4%, YoY +1%)
Operating Profit	8.4 (QoQ +50%, YoY -8%)

Solid performance due to seasonal peak and increase in foreign tourists and corporate demand

Sales	81.1 (QoQ -8%, YoY -5%)
Operating Profit	0.7 (QoQ -30%, YoY +40%)

Despite decrease in revenue due to lower selling prices following a drop in raw material prices, maintained prev. quarters OP thanks to cost-saving efforts

	-9.5%	-8.5%	-1.1%
25,000
20,000	1,740.6
15,000		1,274.2	1,261.5
10,000
5,000
-
3Q22	2Q23	3Q23

Sales OP Margin

Sales	1,261.5 (QoQ -1%, YoY -28%)
Operating Profit	-13.3	(QoQ +88%, YoY +92%)
Equity Method Inv.	-9.7	(QoQ +81%, YoY +85%)

Significantly reduced deficit due to input of low-cost raw materials and reversal of inventory valuation losses

0.6% 1.8% 2.5%

Sales

203.3 (QoQ -4%, YoY -10%)

3,000

2,000

1,000

-

226.6 210.7 203.3

Operating Profit

5.0 (QoQ +35%, YoY +257%)

Equity Method Inv. -2.1 (QoQ +16%, YoY +59%)

Operating profit improved thanks to rise in selling prices

due to rising oil prices

	3Q22	2Q23	3Q23
	Sales	OP Margin
	6.3%	3.6%	4.4%
25,400
20,400	1,848.9	1,970.6	1,837.4

15,400

10,400

5,400

400

3Q22	2Q23	3Q23
		Sales	OP Maring

-30.0%

Sales	1,837.4 (QoQ	-7%, YoY -1%)
Operating Profit	80.4 (QoQ	+12%, YoY -31%)

Equity Method Inv. 9.3 (QoQ -447%, YoY -61%)

Amid the continued impact of rising raw material prices and outsourcing costs, operating profit slightly improved

due to strong plant projects' progress

		3Q23	End of 2022		End of 2021
				Change		Change
	Assets	12,279.4	12,019.0	+260.4	8,180.7	+4,098.7
	Liabilities	7,658.1	7,401.2	+256.9	3,794.0	+3,864.1
	Equities	4,621.3	4,617.8	+3.5	4,386.7	+234.6
	Debt/Equity Ratio	166%	160%	+6%p	86%	+80%p
	Cash & Cash Equiv.	976.8	958.0	+18.8	1,830.1	-853.3
	Debt	5,714.1	5,234.3	+479.8	2,937.3	+2,776.8
	Net Debt	4,737.3	4,276.3	+461.0	1,107.2	+3,630.1

Holding

Company

Subsidiaries

Sub-

subsidiaries

23%

DL E&C

64%	DL
Construction

89%	70%	100%	100%
DL Chemical	DL Energy	GLAD	DL Motors

100% Kraton

100% CARBONCO

100% Cariflex

100%	DL FnC

74% D-REX Polymer

50% YNCC

JV : Hanwha Solutions

50% PMC

JV : LyondelBasell(NED)

* Holdings		* Sub-subsidiaries
* Subsidiary		* Non-affiliates

* Listed Company