2003 1H Results

1
2003 1H Results
2
Sales and Operating Income
Due to the slowdown in domestic consumption and
intense competition, sales decreased by 2 and
operating income by 34 year-on-year.
Operating Income
Sales
(KRW bn)
(KRW bn)
555.6
58.3
546.7
?2
Cosmetics
Cosmetics
?34
36
34
40
38.6
30
Household Products
Household Products
64
66
60
70
02 1H
03 1H
02 1H
03 1H
1
3
Segment Results
Sales of Household Products was similar to last
year with a decrease in margin. Cosmetics showed
negative growth both in sales and profits
year-on-year.
Household Products
Cosmetics
(KRW bn)
(KRW bn)
02 1H
03 1H
changes
02 1H
03 1H
changes
?9.1 ?8.6 ?51.1
1.0 ?2.1 ?22.4
Sales Gross Profit Operating Income
360.3 147.4 34.8
364.0 144.3 27.0
205.3 146.4 23.7
186.6 133.8 11.6
Sales Gross Profit Operating Income
71.7
71.3
40.9
Gross Margin
Gross Margin
39.6
?0.4p
?1.3p
Operating Margin
11.5
Operating Margin
9.7
7.4
6.2
?2.3p
?5.3p
2
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Financial Highlights
In spite of the lower-than-expected business
results and the substantial amount of dividend
payout for FY 02, the debt-to-equity ratio has
remained flat since end-FY 02. However,
profitability was negatively affected by a
decrease in sales and increase in costs.
P/L Summary
B/S Summary
(KRW bn)
(KRW bn)
03 1H
03 1H
FY 02
02 1H
Sales (Cost of Sales) Gross Profit (SG
A) Operating Income Recurring Profit (Extraordinar
y Loss) Net Profit
555.6 265.6 290.0 231.7 58.3 55.9 - 39.7
546.7 270.4 276.3 237.7 38.6 38.5 0.8 27.4
Assets (Fixed) Liabilities (Long-term) Shareholder
s Equity Debt-to-Equity Net Debt-to-Equity
678.1 435.4 406.9 79.1 271.2 150 53
669.3 418.0 399.5 81.5 269.8 148 50
Borrowings (Net Borrowings)
Gross Margin
52.2
173.0
50.5
167.6
(144.8)
10.5
Operating Margin
(135.9)
7.1
3
5
Quarterly Results
(KRW bn)
y-o-y
1H
02 1Q
2Q
03 1Q
2Q
1H
1H
1Q
2Q
Total
Sales Gross Profit Operating Income
0.8 ? 1.5 ?25.6
? 4.2 ? 8.0 ?44.6
? 1.6 ? 4.7 ?33.8
Household Products
4.2 3.0 ? 7.9
? 2.3 ? 7.5 ?42.8
1.0 ? 2.1 ?22.4
Sales Gross Profit Operating Income
Cosmetics
?10.8 ? 8.5 ?54.6
? 7.4 ? 8.7 ?46.7
? 9.1 ? 8.6 ?51.1
Sales Gross Profit Operating Income
4
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Earning Target for 2003
Due to 1st half results falling below target and
slowing growth of the domestic economy, LG HH
revised sales and recurring profit targets for
2003.
Sales
Recurring Profit
(KRW bn)
(KRW bn)
1,170
110
1,100
?6
?27
80
Previous Target
Revised Target
Previous Target
Revised Target
Any information regarding the earning forecast
for 2003 provided before Aug 1, 2003 should be
revised to reflect the above change.
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Thank you!
This presentation contains forward
looking statements which are based on
managements 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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