LOTTE (004990) Corporate Value-up Plan presentation summary

Company overview

• Established in 1967, operates as a pure holding company since 2017, with 315 employees and 78 domestic subsidiaries across F&B, retail, chemicals, and infrastructure sectors.

• Major listed subsidiaries include Wellfood, Chilsung, and Shopping, with a consolidated sales CAGR of 15.8% from 2018 to 2023.

• As of September 2024, foreign ownership is 3.35%, and treasury stock accounts for 32.51% of shares.

• Credit rating is AA- for corporate bonds, and the company has a diversified business portfolio.

Financial performance

• Consolidated assets reached KRW 230.3 trillion and sales KRW 119.9 trillion as of 2024 Q3.

• Operating profit margin remained stable at 3.4% in 2024 Q3, with a net loss of KRW 1.87 trillion.

• Separate operating profit for 2024 Q3 was KRW 162 billion, with a margin of 52.3%.

• F&B and chemical units are the main contributors to sales and operating profit.

Market and shareholder analysis

• Price-to-book ratio (PBR) and return on equity (ROE) are lower than comparable companies, reflecting underperformance in key business areas.

• Dividend payout ratio and yield are higher than peers, but treasury stock proportion is also high.

• Shareholder return rate is defined as (dividends + treasury stock cancellation) / net income, targeting 35% or more.