1. The Company 2 ~ 7 Business Review 8 ~ 13 Financial Highlights 14 ~ 16 For a Better Life Table of Contents

2. Corporate Overview Demerger Corporate Structure Corporate Strategy Business Results & Targets The Company

3.  1947 Established as Lucky Chemical Industrial Co.  1954 Produced Korea’s first toothpaste “Lucky”  1969 Went Public  1974 Changed corporate name to “Lucky” and built Ulsan Plant  1979 Built Lucky R&D Center  1980 Built Cheongju Plant  1984 Commercialized Cosmetics  1995 Changed corporate name to “LG Chemical”  2001 Demerged from LG Chemical and established as LG Household & Health Care History  2001 Sales = KRW 1,111 bn  2001 Overseas Sales = U$ 103 mn Business [ Sales Breakdown ] Founded in 1947, LG Household & Health Care (“LG H&H”) has been a basis for the growth of LG Chemical and LG Group. Since 2001’s demerger, LG H&H now focuses on the household and cosmetics business. * Including pre-demerger 1Q results ** Exports + Overseas Subsidiaries’ sales 3/17 ** * Cosmetics 37% Household Products 63% Skin Care Make-up Men’s Toothpaste Shampoo Soap Laundry Detergent Kitchen Detergent Fabric Softener Corporate Overview

4. With the demerger in April 2001, LG H&H’s corporate value and shareholder value should continue to increase. StructurePositive Effects  Concentrate on core business  Enhance management transparency  Respond quickly to customers’ needs Corporate and shareholder values to increase continuously LGCI LG Chem LG H&H Holding Company Equity Investments Biotechnology Business Subsidiary Petrochemicals Industrial Materials, etc. Business Subsidiary Household Products Cosmetics DEMERGER Demerger(Apr.’01) Dec.’01 [ Market Value ] 143% LG H&H KOSPI 26% 693.70 KRW451bn Demerger Equity Investments Old LG Chemical Petrochem Industrial Materials Biotech Electronic Materials KRW186bn 552.69 Household Products & Cosmetics 4/17

5.  Myeong Jae Cho, CEO - Born in 1945 - B.A., Seoul National University - 1969 Joined Lucky Chemical Industrial Co. - 1997 Charge of H&H Business - Present CEO of LG H&H  Board of Directors - 3 outside directors out of all 6 directors  Employees : 2,808 people  Shareholder Structure People A CEO with professional background and 2,808 employees form the best company structure throughout R&D, production, sales, and logistics. LG H&H’s major shareholder is LGCI. (End of ’01) Production Sales R&D Logistics Household Products Research Institute Cosmetics Research Institute Design Research Institute Packaging Development Institute LG H&H R&D Shanghai Cheongju Plant – Household Products/Cosmetics Production Ulsan/Naju Plant – Household Products Production 4 Overseas JVs 13 Logistics Centers Sales Agents - 190 for Household Products 220 for Cosmetics Operation by region/distribution channel 1,235 Sales personnel 2 Overseas Subsidiaries Company Structure Organization Sales Production R&D Admin. Employees LGCI Foreigner Institute Retail Ratio 5/17

6. Super-Excellent Household & Health Care Company SIGMA 21st Super Excellence, Informatization, Globalization, Management by Knowledge, Action Leadership Our goal is to become a Super-Excellent Household & Health Care Company by enhancing profitable growth, revitalizing business portfolio, and strengthening market leadership based on 「 SIGMA 21st 」.  Strengthening dominant player position in domestic household products market  Penetrating the cosmetics market aggressively  Accelerating globalization  Reinforcing product development skills  Building brand equity  Improving customer satisfaction through CRM*  Achieving world-best productivity and quality  Continuous restructuring  Efficient allocation of management resources Enhance Profitable Growth Revitalize Business Portfolio Strengthen Market Leadership Pursuing super excellence of current business Cultivating growth engine for the future Continuously developing core competences Corporate Strategy *Customer Relation Management 6/17

7. We target KRW 1.2 tn in sales with 10.5% of operating margin and increase of sales contribution of cosmetics. Business Results & Targets 203 (12.5%) 108 (9.7%) 1,111 1,220 1,620 Operating Profit (Margin) Results & Target 128 (10.5%) ’01 ’02(E) ’05(E) CAGR : 10% 37% 63% Household Products 39% 61% 51% 49% (KRW bn) Overseas U$ 103mn (12%) U$ 129mn (14%) U$ 228mn (19%) CAGR : 20% * Including sales from Sorbitol business divested in Apr.’01 ** Exports + Overseas Subsidiaries’ sales ** * Cosmetics 7/17

8. Household Products - Business Strategy - Sales & M/S Cosmetics - Business Strategy - Sales & M/S Overseas Business Business Review

9. Our goal is to strengthen dominant position in the market by focusing on key product/brand/distribution channel and developing sustainable growth engines. Household Products 1. Business Strategy ■ Concentrate resources on core product categories - shampoo/toothpaste/fabric softener ■ Cultivate strategic brands in 6 product categories - Perioe/Elastine/Say/One Scoop/Natural Pon/Saffron ■ Increase number of big brands with annual sales over KRW 10 bn - ’01: 16 big brands ’02: 18 big brands Enhance Market Leadership through Selection & Focus ■ Carry out marketing activities aggressively in discount stores - Concentration of resource ■ Develop strategic models in new channels for early mover’s advantage Set Channel Strategies Corresponding to Changes in Distribution ■ Speedy settlement in new category markets - hair dyes/anti-hair loss) ■ Differentiate overseas business strategy by regional market - Developed market (US/Japan) and developing market (Mexico) Develop Sustainable Growth Engines Continuously Strengthen No.1 Position in Domestic Market 9/17

10. Ensuring stable growth, the household products business enjoys an unwavering no. 1 position in the domestic market. Sales 94 (11.3%) 68 (9.7%) 704 740 830 Operating Profit (Margin) 79 (10.7%) ’01’02(E) ’05(E) CAGR : 4% Sales (KRW bn) Market Share ( % ) ☞ Neilson Data (’01)  Toothpaste  Laundry Detergent  Kitchen Detergent  Soap  Shampoo  Fabric Softener L G 49 L G 36 L G 43 L G 40 L G 27 L G 31 Aekyung 17 Others Pacific 20 Aekyung 27 CJ 21 Others Unilever 12 Others Aekyung 11 Pigeon 47 Oxy 16 Others Pacific 15 2. Sales & M/S Aekyung 14 P&G 18 Pacific 20 CJ 15 Aekyung 34 10/17

11. Our goal is to strengthen growth momentum to be no.1 in cosmetics by expanding leading brands / products and differentiating strategies by distribution channel / region. 1. 사업전략 Cosmetics 1. Business Strategy ■ Increase number of big brands with annual sales over KRW 10 bn - ’01: 8 brands ’02: 11 brands ■ Attain no.1 M/S in specific categories - lipstick/two-way cake/powder/makeup base Sales over KRW 100bn · ISAKNOX (’01) · LacVert (’02) Increase Number of Leading Brands/Products ■ Strengthen leadership in company’s strong channels - specialty cosmetic shops/mass markets ■ Increase M/S in growing channels - direct sales/department store ■ Pursue early settlement in new channels - door-to-door/drug store/hair salon Differentiate Strategies by Distribution Channel ■ Expand overseas sales network and develop strategic markets in China and Vietnam ■ Enlarge sales channels in Russia/Saudi Arabia and establish new networks in the US market Develop Distinct Strategies by Region Strengthen Growth Momentum 11/17

12. Sales and profit contribution of Cosmetics has grown significantly along with market share increase. Sales 108 (13.7%) 40 (9.8%) 407 480 790 Operating Profit (Margin) 50 (10.4%) ’01’02(E)’05(E) CAGR : 18% Sales (KRW bn) Market Share [Market Size] 1,765 ’99’00’01 1,910 2,060 (KRW bn) [LG H&H M/S] 2. Sales & M/S 16% 17% 19% 12/17

13. ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Based on distinct strategies by region, LG H&H actively pursues overseas business with particular emphasis on JVs in China and Southeast Asia. Overseas Business  Country / Est. : China / 1996  Business : Toothpaste Production  ’02 Sales Target : U$ 14 mn LG H&H R&D Shanghai  Country / Est. : China / 1998  Business : Natural Materials R&D Hangzhou LG Cosmetics  Country / Est. : China / 1994  Business : Cosmetics Production  ’02 Sales Target : U$ 15 mn Beijing LG Household Chemical LG Vina Cosmetics LG HAI  Country / Est. : Vietnam / 1997  Business : Cosmetics Production  ’02 Sales Target : U$ 16 mn  Country / Est. : USA / 1990  Business : Toothpaste / Detergent / Cosmetics Sales  ’02 Sales Target : U$ 15 mn LG H&H International Trading  Country / Est. : China / 2000  Business : Shampoo / Soap / Cosmetics Sales  ’02 Sales Target : U$ 11 mn ■ ■ Production JV (4) ■ ■ ■ ■ Sales Subsidiary (2) R&D Subsidiary (1) ■ ■ 13/17

14. Key Financials Cash Flow Financial Highlights

15. [ Key Financials ] [ Borrowings and Interest ] Backed by strong business results, financial conditions are improving significantly through drastic debt reduction. Apr.’01 ’01 ’02(E) (KRW bn) * Including pre-demerger 1Q results Key Financials Assets (Fixed Assets) Liabilities (Borrowings) Shareholders’ Equity (Capital Stocks) Debt/Equity Borrowings/Equity Sales Gross Profit Operating Income Recurring Profit Net Profit E P S (KRW) R O A R O E 685 417 398 160 287 89 139% 56% 1,220 665 128 120 83 5,176 12.3% 29.3% 611 402 419 264 192 89 219% 138% Apr.’01 (Demerger) ’02(E) 647 414 205 233 89 178% 88% 1,111 607 108 107 75 4,770 11.6% 32.2% ’01 ’02(E) E B I T D A Interest Expenses EBITDA/Interest Expenses ’01’02(E) 135 21 6.4 158 14 11.0 (Demerger) 219% 178% 139% Debt/Equity (%) Borrowings (KRW bn) 264 205 160 15/17

16. Net cash from business operating activities is expected at KRW 45bn in 2002. It will primarily be allocated to improving financial conditions, enhancing market leadership, and paying dividend. [ Cash Flow ] [ Usage ] (KRW bn) * * Dividend for fiscal year 2001. Cash Flow Improve Financial Condition Enhance Market Leadership Sustain High Dividend Payout Ratio 16/17

17. Thank you! This presentation contains forward looking statements which are based on management ’ s assumptions and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in this presentation. Potential risks and uncertainties include, but are limited to, such factors as general economic conditions, foreign exchange fluctuations, and any change in the relevant laws and regulations.

18. For a Better Life