LG HH.ir Presentation 2012_1Q_eng

8/2/2019 LG HH.ir Presentation 2012_1Q_eng

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HEALTHY BEAUTIFUL REFRESHING

LG HOUSEHOLD & HEALTH CARE

April 24, 2012

LG Household & Health Care

Results for 1Q 2012


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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.


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1Q 2012 Sales and Operating Profit

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

8-Year Trend1Q 2012 Results (K-IFRS) (Unit: bn won)

Sales 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 fortwenty-seven consecutive quarters since 3Q 2005, and operating profit has increased for twenty-nine consecutivequarters since 1Q 2005.

18.0%

11

110.5

12

130.4

08

57.3

09

66.6

10

93.0

17.0%

11

829.6

12

970.2

08

482.3

09

542.2

10

671.0

07

40.5

07

302.9

06

269.9

06

31.1

05

261.8

05

28.6

Sales 829.6 970.2 17.0%

Operating Profit 110.5 130.4 18.0%

Recurring Profit 104.0 126.3 21.4%

Net Profit 78.2 91.6 17.0%

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


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% of Sales & Growth

by Business Units(Unit: bn won)

% of Operating Profit & Growth

by Business Units(Unit: bn won)

Healthy(Household

Goods)

Beautiful(Cosmetics)

Refreshing

(Beverage)

829.6

970.2

25%

38%

37%35%

40%

25% +17.5%

+24.6%

+8.8%

17.0%

1Q 2011 1Q 2012

1Q 2012 Sales and Operating Profit by Business

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

Both sales and operating profit for all business units Healthy, Beautiful, and Refreshing have maintained their upwardtrend in 1Q 2012. In particular, as domestic and international cosmetics business delivered high growth, cosmeticsbusiness 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.

110.5

130.4

13%

51%

36%34%

54%

12%

18.0%

+6.9%

+25.1%

+11.9%

1Q 2011 1Q 2012

Healthy(Household

Goods)

Beautiful

(Cosmetics)

Refreshing(Beverage)


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HEALTH

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07 08

24.1

09

26.8

10

29.1

11

44.9

12

34.7

40.1

11.9%

07 08 09 10 11 12

196.9

8.8%217.3

238.4

272.3

308.7

336.0

Elastine ReEn Saffron

1Q 2012 Results by Business - Healthy

Operating Profit

Sales

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

(Unit: bn won)

(Unit: bn won)

Salesincreased 8.8% yoy to 336.0 bn won, and maintained highgrowth of 11.3% when excluding raw materials business.Operating profitincreased 11.9% yoy to 44.9 bn won.

Hair care sales grew 12% yoy as Elastine (+17% yoy) andReEn (+79% yoy) delivered strong growth. ReEn, an oriental-herb shampoo brand, is continuously expanding its presence inoriental-herb shampoo category with new product launches.Body care grew 15% yoy as a result of high growth in premiumbrands, Say and ON: the body. Also, fabric softener categorydelivered high growth as Saffron showed 17% yoy growthdespite competitors fierce promotional activities.

Paper category showed strong growth as well. Sanitary napkincategory further expanded its market share to 20.4% (+0.8%pyoy), and diaper category, including Mamipoko, grew 19% yoy.


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BEAUTIF

07 08

16.4

09

23.6

10

27.7

11

70.4

12

47.2

56.3

07 08 09 10 11 12

108.6

25.1%

24.6%

136.3

178.2

256.9

313.4

390.5

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1Q 2012 Results by Business - Beautiful

Operating Profit

Sales


(Unit: bn won)

(Unit: bn won)

Sales increased 24.6% yoy to 390.5 bn won.Operating profitincreased 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 countersin one single quarter to reach 27 counters in total due to positiveconsumer response. Channel penetration is continuouslystrengthening: (1) department store sales grew 19% yoy, and (2)the network of beauty consultants in home visit channel hasexpanded more than 700 in the quarter (from 13,499 to 14,227).

In the masstige segment, growth in major brands, such asIsa Knox, Beyond, and Sooryehan, and strengthening colorcosmetics delivered 17% yoy growth. In color cosmetics, MULE(launched in September 2011) showed high growth with new line

extensions.

TheFaceShop sales increased 21% yoy and operating profitincreased 44% yoy due to: (1) strengthened marketing activitiesalong with product quality improvement in domestic market, and (2)expansion in overseas market.

In particular, TheFaceShop overseas sales showed high growth inJapan 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 strongdomestic foundations for the future growth is on track.

% of OverseasCosmetics Sales

7.6% 16.5%

1Q 2011 1Q 2012


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REFRESHI

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08 09 10 11

17.9

12

14.3

25.7%

Reductionin loss

08 09 10 11

193.7

12

174.5

11.0%

52.1%

50.1

11 12

32.9

11 12

-2.9-9.2*

07

07

11.19.8

8.1

-11.3

141.8125.6

113.0

96.7

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

1Q 2012 Results by Business - Refreshing

Operating Profit

Sales


(Unit: bn won)

(Unit: bn won)

Coca-Cola Bev. Haitai Bev.

Coca-Cola Bev. Haitai Bev.

Sales increased to 243.7 bn won with continuous growth of Coca-Cola 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 brandgrew 10% yoy as a result of: (1) strengthening Coca-Cola Zero byutilizing Haitai sales people, and (2) successful introduction ofdifferentiated packaging, such as special limited edition forValentines Day. Lemon lime soda category grew 20% yoy, boostedby new marketing activities for Sprite brand. Non-carbonatedbeverage 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 fromsuccessful restructuring, such as reduction in excess channelinventory. Operating loss has been significantly reduced.

Synergies in utilizing Haitai sales force in cross-selling Coca-Colabrands have initiated, and sharing of manufacturing facilities isimproving manufacturing efficiencies.


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

Sales 830 970

COGS 403 463

Gross Profit 427 507

SG&A and Others 316 377

Operating Profit 111 130

Non-Operating Loss 6 4

Recurring Profit 104 126

IncomeTax

26 35Net Profit 78 92

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Summary Financial Statements (K-IFRS)

Income Statement Balance Sheets

(Unit: bn won)

Assets 2,369 2,813

Cash & Cash Equivalent 92 239

Accounts Receivable 327 390

Inventories 306 320

PPE 1,602 1,824

Tangible Asset 855 921

Intangible Asset 664 812

Liabilities 1,308 1,733Accounts Payable 231 269

Other Payables 151 211

Borrowings 565 765

Short Term Borrowings 183 533

Long Term Borrowings 382 232

Total Shareholders' Equity 1,061 1,080

Shareholders' Equity 89 89

Capital Surplus 97 97

Retained Earnings 884 915

Other Capital -72 -73

Minority Interest 63 65

2011 Year-end March 2012

LG HH.ir Presentation 2012_1Q_eng

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