LOTTE (004990) IR Day presentation summary

Group overview and financial performance

• Total assets reached 183.3 trillion KRW at end-2024, with 296 affiliates and over 154,000 employees globally.

• Major business units include F&B, retail, chemical, hotel, and infrastructure, with recent focus on ESG and new growth engines.

• 2024 group revenue was 80.1 trillion KRW, with EBITDA volatility due to reliance on specific units; efforts underway to balance the portfolio.

• Asset revaluation in 2024 increased capital by 12.6 trillion KRW and reduced debt-to-equity ratios across key affiliates.

• Financial recovery initiatives include stabilizing capital markets, reducing PF liabilities, and ensuring liquidity above 1 trillion KRW.

Growth strategy and portfolio restructuring

• Key strategies: portfolio restructuring, securing competitiveness, global expansion, and nurturing new growth businesses.

• Divestment of non-core and low-efficiency assets, including sales of subsidiaries, idle land, and non-operational plants.

• Focus on expanding high-value businesses, especially in F&B, retail, and chemical sectors, with global brand development.

• Global business spans 14 countries in F&B, 17 in chemicals, and 20 in hotel/infrastructure, with regional integration and brand enhancement.

• New growth themes include bio & wellness, mobility, sustainability, and digital platforms, with investments in bio CDMO, EV infrastructure, and hydrogen energy.

Core business enhancement: Lotte Wellfood

• Sales reached 40.4 trillion KRW in 2024, with global sales proportion rising to 26.3%; targeting 35% by 2028.

• Strategy focuses on high-value health & wellness products, operational excellence, and global expansion, especially in India and CIS.

• Factory consolidation and logistics automation to improve efficiency; premium and nutrition-focused product launches.

• India business growing at 15–17% CAGR, with new factories and mega brand launches; global expansion of PEPERO and K-food products.

• Mid-term guidance: 5.5 trillion KRW sales, 8–10% ROE, and 35% global sales share by 2028.