LG Household & Health Care

Results for 1Q 2012

LG HOUSEHOLD & HEALTH CARE

HEALTHY

BEAUTIFUL

REFRESHING

April 24, 2012

CONTENTS

1Q 2012 Sales, Operating Profit, Net Profit 1Q 2012 Sales and Operating Profit by Business 1Q 2012 Results by Business - Healthy - Beautiful

- Refreshing
Summary Financial Statements

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

1Q 2012 Sales and Operating Profit

Total company in 1Q 2012 delivered 970.2 bn won in sales (17.0% growth yoy), and 130.4 bn won in operating profit (18.0% growth yoy). Both sales and operating profit reached all-time high first quarter results. Sales has increased for twenty-seven consecutive quarters since 3Q 2005, and operating profit has increased for twenty-nine consecutive quarters since 1Q 2005.

1Q 2012 Results (K-IFRS)

(Unit: bn won) 1Q 2011 1Q 2012 Increase

8-Year Trend
Sales
970.2

(Unit: bn won)

Operating Profit

829.6

Sales

829.6

970.2

17.0%
671.0 542.2

17.0% 110.5 93.0

130.4

18.0%

Operating Profit

110.5

130.4

18.0%

482.3

66.6
261.8 269.9 302.9 57.3

Recurring Profit

104.0

126.3

21.4%

40.5
28.6 31.1

Net Profit

78.2

91.6

17.0%

05

06

07

08

09

10

11

12

05

06

07

08

09

10

11

12

2005-2007: K-GAAP Non-Consolidated, 2008: K-GAAP Consolidated, 2009~2012: K-IFRS

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1Q 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 1Q 2012. In particular, as domestic and international cosmetics business delivered high growth, cosmetics business sales and operating profit contribution increased, and led total companys operating profit margin expansion. On a yoy basis, sales increased 8.8% in Healthy, 24.6% in Beautiful, and 17.5% in Refreshing. Operating profit increased 11.9% in Healthy, 25.1% in Beautiful, and 6.9% in Refreshing. % of Sales & Growth by Business Units
(Unit: bn won)

% of Operating Profit & Growth by Business Units

(Unit: bn won)

17.0%

970.2 18.0%

829.6 Refreshing (Beverage) 25%

25%

+17.5%

130.4 12% 110.5 Refreshing (Beverage) Beautiful (Cosmetics) +6.9%

40% Beautiful (Cosmetics) 38%

+24.6%

13% 54% 51% +25.1%

Healthy (Household Goods)

37%

35%

+8.8%

Healthy (Household Goods)

2/6

36% 1Q 2011

34%

+11.9%

1Q 2011

1Q 2012

1Q 2012

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

1Q 2012 Results by Business - Healthy

Operating Profit
44.9
40.1 34.7 24.1 26.8 29.1 11.9%

HEALTHY

(Unit: bn won)

Sales increased 8.8% yoy to 336.0 bn won, and maintained high growth of 11.3% when excluding raw materials business. Operating profit increased 11.9% yoy to 44.9 bn won. Hair care sales grew 12% yoy as Elastine (+17% yoy) and ReEn (+79% yoy) delivered strong growth. ReEn, an orientalherb shampoo brand, is continuously expanding its presence in oriental-herb shampoo category with new product launches. Body care grew 15% yoy as a result of high growth in premium brands, Say and ON: the body. Also, fabric softener category delivered high growth as Saffron showed 17% yoy growth despite competitors fierce promotional activities. Paper category showed strong growth as well. Sanitary napkin category further expanded its market share to 20.4% (+0.8%p yoy), and diaper category, including Mamipoko, grew 19% yoy.

07

08

09

10

11

12

Sales
336.0 308.7 272.3 238.4 217.3 196.9

(Unit: bn won)

8.8%

07

08

09

10

11

12

Elastine 3/6

ReEn

Saffron

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

1Q 2012 Results by Business - Beautiful

Operating Profit
70.4 56.3 47.2 25.1% 27.7 16.4 23.6

BEAUTIFUL

(Unit: bn won)

Sales increased 24.6% yoy to 390.5 bn won. Operating profit increased 25.1% yoy to 70.4 bn won. In the prestige segment, main focused brands, Whoo and Su:m, delivered 17% and 20% yoy growth each. Belif opened 8 counters in one single quarter to reach 27 counters in total due to positive consumer response. Channel penetration is continuously strengthening: (1) department store sales grew 19% yoy, and (2) the network of beauty consultants in home visit channel has expanded more than 700 in the quarter (from 13,499 to 14,227). In the masstige segment, growth in major brands, such as Isa Knox, Beyond, and Sooryehan, and strengthening color cosmetics delivered 17% yoy growth. In color cosmetics, MULE (launched in September 2011) showed high growth with new line extensions.

07

08

09

10

11

12

Sales
390.5

(Unit: bn won)

TheFaceShop sales increased 21% yoy and operating profit increased 44% yoy due to: (1) strengthened marketing activities along with product quality improvement in domestic market, and (2) expansion in overseas market. In particular, TheFaceShop overseas sales showed high growth in Japan and China, reaching 15.6 bn won sales (+113% yoy growth) in total. Overseas point-of-sale locations expanded to 921. Preparing overall cosmetics overseas business on top of strong domestic foundations for the future growth is on track.
7.6% 16.5%

313.4
256.9 178.2 136.3 108.6

24.6%

07

08

09

10

11

12

% of Overseas Cosmetics Sales

1Q 2011 1Q 2012

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

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1Q 2012 Results by Business - Refreshing

Operating Profit
Coca-Cola Bev.
17.9 14.3 11.1 8.1 -11.3 9.8 25.7% -9.2* -2.9 Reduction in loss 11 12

REFRESHING

(Unit: bn won)

Haitai Bev.

Sales increased to 243.7 bn won with continuous growth of CocaCola Beverage and improvement of Haitai Beverage. Operating profit increased 25.7% yoy for Coca-Cola Beverage. Haitai Beverage reduced its operating loss significantly. Coca-Cola Beverage sales increased 11.0% yoy to 193.7 bn won, and operating profit increased 25.7% yoy to 17.9 bn won. Carbonated beverage sales grew 10% yoy. Coca-Cola brand grew 10% yoy as a result of: (1) strengthening Coca-Cola Zero by utilizing Haitai sales people, and (2) successful introduction of differentiated packaging, such as special limited edition for Valentines Day. Lemon lime soda category grew 20% yoy, boosted by new marketing activities for Sprite brand. Non-carbonated beverage sales grew 21% yoy as: (1) Georgia coffee grew 61% yoy with new light-weight aluminum bottle product launch, and (2) Glaceau Vitamin Water grew 64% yoy. Haitai Beverage sales increased 52.1% yoy to 50.1 bn won from successful restructuring, such as reduction in excess channel inventory. Operating loss has been significantly reduced. Synergies in utilizing Haitai sales force in cross-selling Coca-Cola brands have initiated, and sharing of manufacturing facilities is improving manufacturing efficiencies.

07

08

09

10

11

12

* Excluded one off gains (9.0 bn won) for fair comparison

Sales
Coca-Cola Bev.
193.7 174.5 141.8 125.6 113.0 96.7 32.9 11.0%

(Unit: bn won)

Haitai Bev.

50.1

52.1% 07 08 09 10 11 12 11 12

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 Ne t Profit 1Q 2011 830 403 427 316 111 6 104 26 78 1Q 2012 970 463 507 377 130 4 126 35 92

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 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 97 884 -72 63 March 2012 2,813 239 390 320 1,824 921 812 1,733 269 211 765 533 232 1,080 89 97 915 -73 65

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