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2003 3Q Results (unaudited) * This report has been prepared on an unaudited basis and may be subject to changes.
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Sales Due to seasonal factors, 3Q sales increased by 5% quarter-on-quarter to reach KRW 273bn. Sales decreased year-on-year, however, given that the recovery in domestic demand has yet to materialize. Quarter-on-Quarter (KRW bn) 2003 2Q 2003 3Q 1 / 7 260.8 272.5 4.5% (KRW bn) Jan.~Sept. 292.0 272.5 847.6 819.3 ▽ 3.3% ▽ 6.7% 3Q Year-on-Year 2002 3Q 2003 Jan.~Sept.
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Operating Income (Margin) 3Q operating income increased 53% q-o-q but decreased 42% y-o-y, mainly due to fierce competition, amounting to KRW 21bn. (KRW bn) 2 / 7 2003 2Q 2003 3Q 53.2% ▽ 37.2% ▽ 42.4% 95.4 (11.3%) 37.0 (12.7%) 21.3 (7.8%) 59.9 (7.3%) 13.9 (5.3%) 21.3 (7.8%) 3Q 2002 3Q 2003 Quarter-on-Quarter Year-on-Year Jan.~Sept. Jan.~Sept.
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Household Products In spite of the slowdown in the six major products market and more intense competition, 3Q sales and operating income increased q-o-q largely as a result of seasonality. Market Share (%) 3716 9 3049 기타 16 [2003] (Jan.~Sept.) Sales & Profit (KRW bn) 20022003 Toothpaste L G 47 Pacific 19 Others Aekyung 20 49 19 [2002] 281915 18 12 19 Shampoo L G 30 P&G 17 291817 13 Unilever 17 Aekyung 13 Pacific 16 Others 37161410 Others 361611 Pacific 16 CJ 11 Unilever 15 372722 L G 36 Laundry Detergent Aekyung 26 CJ 23 Others L G 35 2523 443315 Kitchen Detergent L G 41 Others CJ 17 Aekyung 32 423217 3149 Fabric Softener L G 31 Pigeon 50 Oxy 13 Others 3150 15 14 3 / 7 [2003 1H] 46 20 20022003 Jan.~Sept. 3Q Soap L G 37 q-o-q y-o-y Sales Gross Profit (G.P. Margin) Operating Income (O.P Margin) 201.6 86.5 (42.9%) 28.7 (14.2%) ▽ 0.8% ▽ 0.1% (0.3%P) ▽ 14.3% ( ▽ 1.9%P) 17.1% 29.9% (4.3%P) 196.4% (7.4%P) 200.0 86.4 (43.2%) 24.6 (12.3%) 0.4% ▽ 1.4% ( ▽ 0.7%P) ▽ 18.7% ( ▽ 2.2%P) 561.9 233.9 (41.6%) 63.5 (11.3%) 564.0 230.7 (40.9%) 51.6 (9.1%) Sale Gross Profit (G.P. Margin) Operating Income (O.P. Margin)
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Cosmetics Sales by Channel (KRW bn, %) 62 Exports, Home Shopping, Online, etc. Discount Store Specialty Shop Old & New Door-to-door Department Store Others Premium Market Mass Market 2003 (Jan.~Sept.) 58 16 2002 (Full Year) 24 14 382.6 The ongoing downturn in the specialty shop and new door-to-door channels and investment to develop the premium channel led to weak performance. 4 / 7 260.8 26 Sales & Profit (KRW bn) 20022003 20022003 Jan.~Sept. 3Q q-o-q y-o-y Sales Gross Profit (G.P. Margin) Operating Income (O.P Margin) Sale Gross Profit (G.P. Margin) Operating Income (O.P. Margin) 93.6 66.5 (71.0%) 6.7 (7.2%) ▽ 22.4% ▽ 23.8% ( ▽ 1.2%P) - ▽ 22.1% ▽ 23.5% ( ▽ 1.3%P) - 72.6 50.7 (69.8%) ▽ 3.3 - ▽ 13.3% - ▽ 72.2% ( ▽ 7.0%P) 298.9 212.9 (71.2%) 30.4 (10.2%) 259.1 184.5 (71.2%) 8.3 (3.2%)
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Financial Highlights B/S Summary (KRW bn) P/L Summary (KRW bn) Assets Fixed Liabilities Long-term Shareholders’ Equity Debt-to-Equity Net Debt-to-Equity 678.1 435.4 406.9 79.1 271.2 150% 53% 684.7 411.0 402.1 61.6 282.6 142% 48% FY ’02 ’03 3Q Borrowings (Net Borrowings) 173.0 175.5 (135.8) Although sales and profit recorded a decrease y-o-y, debt-to-equity ratio has improved since end-FY ’02. 5 / 7 P/L Summary 2002 2003 Sales Cost of Sales Gross Profit SG&A Operating Income Recurring Profit Net Profit Jan.~Sept. % % (144.8) 847.6 406.2 441.4 346.0 95.4 92.4 64.9 47.9% 11.3% 10.9% 7.7% 52.1% 40.8% 819.3 406.2 413.1 353.2 59.9 58.7 41.3 50.4% 7.3% 7.2% 5.0% 49.6% 43.1%
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Quarterly Results Sales Gross Profit Operating Income Total 2002 1Q2Q2003 1Q2Q Household Products Cosmetics (KRW bn) 3Q 4.5% 4.1% 53.2% 17.1% 29.9% 196.4% ▽ 22.1% ▽ 23.5 % - ▽ 6.7% ▽ 9.6% ▽ 42.4 % 2003 3Q q-o-q 6 / 7 2003 3Q y-o-y ▽ 0.8% ▽ 0.1% ▽ 14.3% ▽ 22.4% ▽ 23.8% - Sales Gross Profit Operating Income Sales Gross Profit Operating Income 283.5 147.1 33.2 272.1 142.9 25.1 285.9 144.9 24.7 292.0 151.4 37.0 260.8 131.4 13.9 272.5 136.8 21.3 185.5 75.5 20.3 174.8 71.9 14.5 193.2 77.8 18.7 201.6 86.5 28.7 170.8 66.5 8.3 200.0 86.4 24.6 104.7 73.8 13.0 100.6 72.6 10.7 93.4 67.5 5.9 93.6 66.5 6.7 93.2 66.3 5.7 72.6 50.7 ▽ 3.3
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www.lgcare.co.kr www.careshop.co.kr 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.
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