LG Household & Health Care

Results for 3Q 2012

LG HOUSEHOLD & HEALTH CARE

HEALTHY

BEAUTIFUL

REFRESHING

October 24, 2012

CONTENTS

3Q 2012 Sales and Operating Profit 3Q 2012 Sales and Operating Profit by Business 3Q 2012 Results by Business - Healthy - Beautiful - Refreshing Summary Financial Statements Attachment: Establishment of CheonAn Complex

Audit of these results is still in progress. Figures in this disclosure are subject to change during the auditing process.

3Q 2012 Sales and Operating Profit

Total company in 3Q 2012 delivered 1,052.2 bn won in sales (13.5% growth yoy), 131.1 bn won in operating profit (16.9% growth yoy), and 90.5 bn won in net profit (17.4% growth yoy). Sales, operating profit, and net profit reached all-time high third quarter results, and sales exceeded one trillion won for the first time for a single quarter. Accumulated sales as of 3Q YTD exceeded three trillion won as well. Sales has increased for twenty-nine consecutive quarters since 3Q 2005, and operating profit has increased for thirty-one consecutive quarters since 1Q 2005.

3Q 2012 Results (K-IFRS)

(Unit: bn won) 3Q 2011 3Q 2012 Increase

7-Year Trend
3Q Sales

(Unit: bn won)

3Q Operating Profit

1,052.2

131.1 112.1

Sales

926.8

1,052.2

13.5%
759.3

926.8 98.4

13.5%
69.4 55.6

16.9%

Operating Profit

112.1

131.1

16.9%
523.2

600.7

Recurring Profit

105.4

123.3

17.0%

276.7 302.0 28.9

38.6

Net Profit

77.1

90.5

17.4%

06

07

08

09

10

11

12

06

07

08

09

10

11

12

2006-2007: K-GAAP Non-Consolidated, 2008: K-GAAP Consolidated, 2009~2012: K-IFRS

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3Q 2012 Sales and Operating Profit by Business

Both sales and operating profit for all business units Healthy, Beautiful, and Refreshing have maintained their upward trend in 3Q 2012. In particular, as domestic and international cosmetics business delivered high growth continuously from second quarter, cosmetics business sales and operating profit contribution increased, and led total companys operating profit margin expansion. On a yoy basis, sales increased 9.4% in Healthy, 20.2% in Beautiful, and 11.9% in Refreshing. Operating profit increased 9.0% in Healthy, 25.9% in Beautiful, and 19.5% in Refreshing. % of Sales & Growth by Business Units
(Unit: bn won)

% of Operating Profit & Growth by Business Units

(Unit: bn won)

13.5% 1,052.2 16.9% 131.1 926.8 Refreshing (Beverage) Beautiful (Cosmetics) 32% 32% +11.9% 112.1 25% +19.5%

33%
31%

+20.2%

Refreshing (Beverage)
Beautiful (Cosmetics)

25% 34% 32% +25.9%

Healthy (Household Goods)

37%

35%

+9.4%

Healthy (Household Goods)

44%

41%

+9.0%

3Q 2011

3Q 2012
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3Q 2011

3Q 2012

3Q 2012 Results by Business - Healthy

Operating Profit
49.3 39.4 28.4 44.6 9.0% 53.7

HEALTHY

(Unit: bn won)

Despite negative consumption sentiment and input cost increase from governments strong pressure not to raise prices, sales increased 9.4% yoy to 371.8 bn won and operating profit increased 9.0% yoy to 53.7 bn won.

30.3

Main categories, including skin care, dishwashing liquid, and laundry detergent, all showed continued strong sales growth of more than 10% each. Chu-suk (Korean Thanksgiving) gift-set sales increased with new differentiated design and function focused product assortment.
Design and convenience focused new product launches continued this quarter, such as: (1) Tech OK Melting Sheet Laundry Detergent, sheet-type laundry detergent that dissolves in water, (2) Tech 4x Concentrate Laundry Detergent Mix, small single-usage packaged convenient laundry detergent, and (3) Elastine Dry Shampoo, an instant hair shampoo that cleans hair and scalp without water.

07

08

09

10

11

12

Sales
371.8 339.8 300.8 267.2 232.6 210.2

(Unit: bn won)

9.4%

07

08

09

10

11

12

2007~2009: K-GAAP Non-Consolidated, 2010~2012: K-IFRS

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3Q 2012 Results by Business - Beautiful

Operating Profit
(Unit: bn won)
44.5 35.4 28.7 20.7 16.3 10.2 25.9%

BEAUTIFUL

Sales increased 20.2% yoy to 342.7 bn won. Operating profit increased 25.9% yoy to 44.5 bn won. In the prestige segment, main focused brand, Su:m, delivered 34% yoy growth, and Belif delivered over 200% sales growth. The worlds first refrigerated cosmetics, Frostines (launched this May), is continuously expanding with positive response from consumers. Masstige segment delivered 7% yoy growth due to strong growth in major brands, such as Beyond and IsaKnox. In particular, environmentally friendly body care brand, Beyond opened two road shops on top of 216 shop-in-shop stores in discount stores. In the mass segment, TheFaceShop(TFS) sales increased 27.8% yoy, reaching 100.3 bn won. Overseas sales increased 74% to 21.0 bn won. Also, recently launched a new color brand shop VDL for both domestic and overseas markets, utilizing TFS brand shop managing know-how. Overseas business, on top of strong growth of Ginza Stefany and TFS, is continuously increasing its sales portion from 10%(3Q11) to 16%(3Q12). TFS has total of 2,391 stores - 1,012 stand alone stores in Korea and 1,379 points of sale (544 stand alone stores and 835 points of sale). TFS plans to expand to India with Sephora this November 1 st.
Prestige
OHUI, Whoo, SU:M, Belif, Frostine, Chungyunjin, Stefany

07

08

09

10

11

12

Sales
(Unit: bn won)
342.7 285.1 257.4 20.2% 146.5 123.8 95.4

Masstige
IsaKnox, LacVert, Sooryehan, Vonin, Beyond

Mass
THEFACESHOP, VDI

102.3

122.7

104.3

111.5 78.5

108.5

07

08

09

10

11

12

20%
3Q 11 3Q 12 3Q 11 3Q 12

7%
3Q 11 3Q 12

38%

2007~2009: K-GAAP Non-Consolidated, 2010~2012: K-IFRS

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(Unit: bn won)

3Q 2012 Results by Business - Refreshing

Operating Profit
Coca-Cola Bev. and others
25.1 19.2 11.8 4.9 0.3 27.2 11.4% 2.5 Expand Profit

REFRESHING

(Unit: bn won)

Haitai Bev.
30.3

Sales increased 11.9% yoy to 337.8 bn won with continuous growth of both Coca-Cola Beverage and Haitai Beverage. Operating profit increased 19.5% yoy to 32.8 bn won, reaching 9.7% operating profit margin with 0.6%p yoy expansion. Coca-Cola Beverage sales increased 13.1% yoy to 265.1 bn won, and operating profit increased 11.4% yoy to 30.3 bn won Carbonated beverage sales grew 14% yoy. Cola-Cola brand sales grew as regular products showed steady growth and differentiated packages including Jean Paul Gaultier special package were introduced. New product launch continued, including Schweppes and Fanta Smoothie. Non-carbonated beverage sales grew 12% yoy as: (1) Georgia coffee grew with strengthened product portfolio, (2) newly introduced Minute Maid Mini Glass Bottle showed strong growth, and (3) water category grew. Haitai Beverage sales increased 7.5% yoy to 72.7 bn won and operating profit further expanded to 2.5 bn won from successful main brand renewals and Sunkist Mini Glass Bottle juice strong performance.

07

08

09

10

11

12

11

12

Sales
Coca-Cola Bev. and others
265.1

(Unit: bn won)

Haitai Bev.

234.3
201.1 151.3 120.2 67.6 7.5% 07 08 09 10 11 12 11 12 170.8 13.1%

Sunkist
72.7

Minute Maid

2007~2009: K-GAAP Non-Consolidated, 2010~2012: K-IFRS

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Summary Financial Statements (K-IFRS)

Income Statement
(Unit: bn won) Sales COGS Gross Profit SG&A and Others Operating Profit Non-Operating Loss Recurring Profit Income Tax Net Profit 3Q 2011 927 482 445 333 112 7 105 28 77 3Q 2012 1,052 526 526 395 131 8 123 33 90 3Q YTD 2011 2,622 1,328 1,294 971 323 21 302 79 224 3Q YTD 2012 3,002 1,471 1,531 1,155 376 22 354 95 258

Balance Sheets
(Unit: bn won) Assets Cash & Cash Equivalent Accounts Receivable Inventories PPE Tangible Asset Intangible Asset Liabilities Accounts Payable Other Payables Borrowings Short Term Borrowings Long Term Borrowings Total Shareholders' Equity Shareholders' Equity Capital Surplus Accumulated Other Comprehensive Income Retained Earnings Other Capital Minority Interest 2011 Year-end 2,369 92 327 306 1,602 855 664 1,308 231 151 565 183 382 1,061 89 97 0 884 -72 63 Sep. 2012 2,875 119 519 309 1,879 951 817 1,627 236 198 729 461 268 1,248 89 97 -5 1,071 -73 69

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Attachment: Establishment of CheonAn Complex

LG H&H is ready to activate the long-term master plan for future growth and cosmetics globalization. To reinforce the long-term strategy, LG H&H has executed an agreement to acquire 100% of Future Corp. and its 150,000 pyeong land for 49.3 bn won. - Newly acquired land is at CheonAn, which has high accessibility from Seoul via KTX (11km from CheonAnAsan KTX station), metropolitan subway line (9km from CheonAn subway station), and CheonAn Nonsan expressway (4.5km from South Cheonan IC). The land is also located next to Haitai Beverages CheonAn factory. With this acquisition, 280,000 pyeong (229 acre) base for future growth will be established at CheonAn, including Haitais land.