2003 1H Results

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.

Sales(KRW bn)

555.6 546.7

’02 1H ’03 1H

▽2%

Cosmetics

HouseholdProducts

64% 66%

36% 34%

Operating Income

58.3

38.6

’02 1H ’03 1H

60%

70%

40%

30%

▽34%

1

Cosmetics

HouseholdProducts

(KRW bn)

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

Sales

Gross Profit

Operating Income

360.3

147.4

34.8

364.0

144.3

27.0

’02 1H ’03 1H

40.9% 39.6%

9.7%7.4%

changes

1.0%

▽2.1%

▽22.4%

▽1.3%p

▽2.3%p

2

(KRW bn)

Gross Margin

Operating Margin

Cosmetics

205.3

146.4

23.7

186.6

133.8

11.6

71.3% 71.7%

11.5%6.2%

▽9.1%

▽8.6%

▽51.1%

▲0.4%p

▽5.3%p

Sales

Gross Profit

Operating Income

’02 1H ’03 1H changes

Gross Margin

Operating Margin

(KRW bn)

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%

669.3

418.0

399.5

81.5

269.8

148%

50%

FY ’02 ’03 1H

Borrowings

(Net Borrowings)

173.0167.6

(144.8)

Sales

(Cost of Sales)

Gross Profit

(SG & A)

Operating Income

Recurring Profit

(Extraordinary Loss)

Net Profit

’02 1H ’03 1H

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

52.2% 50.5%

10.5%7.1%

(135.9)

3

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.

Gross Margin

Operating Margin

Quarterly Results

Sales

Gross Profit

Operating Income

Total

’02 1Q 2Q ’03 1Q 2Q

4

HouseholdProducts

Cosmetics

(KRW bn)

283.5 272.1 555.6 285.9 260.8 546.7

147.1 142.9 290.0 144.9 131.4 276.3

33.2 25.1 58.3 24.7 13.9 38.6

185.5 174.8 360.3 193.2 170.8 364.0

75.5 71.9 147.4 77.8 66.5 144.3

20.3 14.5 34.8 18.7 8.3 27.0

104.7 100.6 205.3 93.4 93.2 186.6

73.8 72.6 146.4 67.5 66.3 133.8

13.0 10.7 23.7 5.9 5.7 11.6

Sales

Gross Profit

Operating Income

Sales

Gross Profit

Operating Income

1H 1H

0.8%

△ 1.5%

△25.6%

4.2%

3.0%

△ 7.9%

△10.8%

△ 8.5%

△54.6%

△ 4.2%

△ 8.0%

△44.6%

△ 2.3%

△ 7.5%

△42.8%

△ 7.4%

△ 8.7%

△46.7%

△ 1.6%

△ 4.7%

△33.8%

1.0%

△ 2.1%

△22.4%

△ 9.1%

△ 8.6%

△51.1%

1Q 2Q 1H

y-o-y

Earning Target for 2003

5

Due to 1st half results falling below target and slowing growth of the domestic economy,LG H&H revised sales and recurring profit targets for 2003.

Sales Recurring Profit(KRW bn)

* Any information regarding the earning forecast for 2003 provided before Aug 1, 2003 should be revised to reflect the above change.

1,170

Previous Target Revised Target

110

Previous Target Revised Target

1,100

80

▽6%

▽27%

(KRW bn)

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.