LG Chem (051910) Corporate presentation summary

Performance review and key achievements

• Revenue and profitability declined in 2024 due to global economic uncertainty and delayed petrochemical market recovery, but a differentiated profitability gap was maintained through business improvements and cost competitiveness.

• Proactive restructuring included divestment of low-growth products and tangible results from growth drivers in sustainability, battery materials, and pharmaceuticals.

• Revenue CAGR was 10.3% from 2015–2024, with an average operating margin of 7.1%.

Market environment and strategic response

• Rapid changes in technology and market trends prompted annual reviews and strategic adjustments, especially for sustainability, battery materials, and innovative drugs.

• Growth in biofuel and recycling continues, while EV and battery materials face cost competition and policy volatility.

• Oncology drug demand and AI-driven R&D productivity are increasing, with intensified competition for promising assets.

Restructuring of growth drivers

• Growth framework expanded to four pillars: high value-added petrochemicals, sustainability, battery/electronic materials, and innovative drugs.

• Focus on high value-added applications, eco-friendly fuels, recycling, and expansion into automotive, semiconductor, and medical product lines.

• Battery materials business targets product/customer diversification and next-generation technologies, while the pharmaceutical segment accelerates U.S. oncology expansion.