Lihun Ki, CEO of Lotte Chemical, "Aiming for 50 Trillion KRW Corporate Value by 2030... Will Achieve Qualitative Growth"

Company Strategy Announced at 'CEO INVESTOR DAY'
Business Structure Reorganized Around General-Purpose Petrochemicals
Financial Soundness Restored Through Surplus Cash Flow Management
Continued Pursuit of Shareholder Value Enhancement Policies

"With a successful portfolio transformation, we aim to achieve a corporate value of over 50 trillion KRW by 2030."

On the 4th, at the 'CEO INVESTOR DAY' held at The-K Tower in Yeouido, Seoul, Lotte Chemical CEO Hun-ki Lee stated, "We will actively respond to the speed of change with clear direction and goals to achieve qualitative growth." This was his first event attendance since taking office, where he announced the company's strategy.

Specifically, the plan is to establish clear directions for each strategic business unit: basic chemicals, advanced materials, fine chemicals, battery materials, and hydrogen energy, to build a sustainable business structure.

Lee Hoon-ki, CEO of Lotte Chemical, is presenting the company strategy at the 'CEO INVESTOR DAY' held on the 4th.
[Photo by Lotte Chemical]

For basic chemicals, the plan is to strengthen its role as a cash cow through asset light strategies and maximizing operational efficiency, while reducing its portfolio share to below 30% by 2030.

Advanced materials aim to grow into the core of a healthy portfolio by maintaining a stable profit-generating structure for functional products and gradually expanding volume, targeting sales of 8 trillion KRW by 2030.

Fine chemicals will focus on nurturing eco-friendly green materials businesses and continuously discovering new businesses to expand sales to 5 trillion KRW by 2030.

Battery materials plan to establish a global leading position centered on cathode and anode foils, while exploring additional business opportunities, aiming for sales of 7 trillion KRW by 2030.

Hydrogen energy will build a business foundation by utilizing by-product hydrogen from the Lotte chemical group and expand its portfolio by securing overseas clean hydrogen/ammonia, targeting sales of 4 trillion KRW by 2030.

Efforts to enhance financial soundness will continue. Plans include divesting inefficient assets, attracting investments to manage business risks, and restructuring the business by strategically withdrawing from certain operations. Investment risk management will also be expanded to improve cash flow by adjusting plans for new and ongoing investments that involve large cash outflows.

The company will continue product advancement by increasing the proportion of high value-added products, improve cost competitiveness through expanded LPG input, and maximize operational efficiency by optimizing facilities?producing high-profit alternative products in less competitive plants.

Policies to enhance shareholder value are also being pursued. In 2022 and last year, the company completed cumulative repurchases of treasury stock worth 100 billion KRW and implemented a year-end dividend of 3,500 KRW per share for two consecutive years. This year, to strengthen responsible management, 102 executives purchased 50,000 shares (5.6 billion KRW).

Lotte Chemical plans to disclose its corporate value enhancement plan within the year in accordance with government policy guidelines to actively respond to the corporate value-up program.

This content was produced with the assistance of AI translation services.