LOTTE (004990) investor relations material

Executive summary

• 9M 2026 consolidated revenue was ₩11.839T and operating income ₩332.7B; net income was ₩70.7B after a ₩176.1B loss in 9M 2025, while parent-attributable income was only ₩1.8M.

• Performance reflected resilient food and retail operations alongside pressure in chemicals and investment-stage biopharma; the holding entity’s separate results were boosted by a ₩127.1B impairment reversal.

Financial highlights

• 9M revenue was ₩11.839T vs ₩11.783T YoY; operating income was ₩332.7B vs ₩345.2B, and pretax income was ₩133.8B vs a ₩176.1B loss.

• 9M net income was ₩70.7B vs a ₩176.1B loss; parent-attributable income was ₩1.8M vs a ₩283.9B loss, and basic EPS was -₩326.

• Q3 revenue was ₩4.124T vs ₩4.154T YoY; operating income was ₩157.6B vs ₩185.1B, with a quarterly net loss of ₩8.2B.

• Cash and cash equivalents were ₩1.549T at Sep. 30, up from ₩1.391T at Dec. 31, 2025; 9M operating cash flow was ₩1.015T.

Outlook and guidance

• Biologics targets 2027 as the year of material revenue growth, following Songdo GMP validation and the start of commercial operations; the US Syracuse site has planned shutdown and upgrade work through early 2027.

• Antibody-drug conjugate production at Syracuse began in 2025; the Songdo plant received use approval in June 2026, with validation under way toward GMP operations.

• Biologics reported contracted antibody-drug product orders of $582.9M; including post-period contracts, minimum orders were $822.9M, subject to customer demand.

• Retail plans emphasize grocery-led stores, online/offline integration, premium department-store experiences and Southeast Asian expansion; the 2026 separate asset investment plan was ₩600B, with ₩362.8B spent by Q3.