for Growth


The Company has adopted its financial statements under International Financial Reporting Standards (IFRS) in 2010. estimates. financial market movement. Actual results may differ from those we project and may be affected by the business environment. or other factors. government regulation and legislation. Slide 2 . The company does not undertake any Leading Global Life Sciences obligation to update or publicly release any revisions to forward-looking statements to reflect events.Disclaimer This IR Presentation contains forward-looking statements that are based on management’s expectations. circumstances or changes in expectations after the date of this report. projections and assumptions. All forward-looking statements speak only as of the date of this report.

R&D Pipeline Growth Pathway Leading Global Life Sciences Slide 3 .Agenda Overview & Financial Highlight Product Sales & Pharma Div.

Opening remarks No. 1 R&D-driven and export pharma in Korea Diversified business model. compared to biotech 20 years experience in manufacturing biologics products Leading Global Life Sciences Top 10 Biosimilar Player Global leader in long-acting hGH Slide 4 .

Mirae Asset 4%. 57 (17%) API Agrochemical 4.Revenues Breakdown (FY 2009) Pharmaceutical Div. LG corp. Demerged from LG Chem.* Market Cap. Korea leading life science company Shareholding (As of FY2009) Leading Global Life Sciences 30%. in 2002 3. 270 (83%) Vx Rx Fine Chem Div. One of LG Group affiliate (Bil KRW) Business Domain .LG Life Sciences Overview Specialized healthcare company of LG Group affiliates Future growth engine for LG Group Who we are 1. R&D center established in 1984 2. 1Tn KRW 11%. National Pension Fund Dx Others Domestic 55% Overseas 45% * Korea’s second largest conglomerate Slide 5 .LG Group total revenue $115Bn .

Solid Revenue Growth 2009 marked a turning point for LG Life Sciences Single Digit OPM Revenue OPM Double Digit OPM (Bil KRW) TURNING POINT 12% 9% Leading Global Life Sciences 4% 4%* 327 256 282 360 4XX 221 2006 2007 2008 2009 2010(E) 2011(E) * Excluding one-off milestone Slide 6 .

Strong Profit Solid improvement of financial data EPS (Unit: KRW) ROE Profit ‘10 2009 1.627 Profitable Growth 15%~ 2008 Leading Global Life Sciences 902 66% CAGR 66% CAGR ‘09 9% Increase in asset turnover 2007 187* ’08 2006 353 6% Asset Utilization Slide 7 * Excluding one-off milestone .

Product sales Growth Driver 7 emerging markets Diversified Portfolio Policy Risk API (Bil KRW) Growth rate (`08 Vs. EPO.`09) Up 12% Product Sales (2009) 163 Up 7% 78 Up 160% 16 Up 8% 57 Leading Global Life Sciences Biologics Product 1st gen. API Intermediate Antibiotic Vaccine bST Bovine somatotropin Others Oncology Others Agro-chemicals Slide 8 * Plastic surgery & dermatology . FSH) Chemical Synthetics CV franchise Others Diagnostic Medical Aesthetics* Contrast agent Functional food Others Fine chem. Bio-drug (hGH.

80% of LGLS’s exports from EM 298b 260b 113b Russia Turkey China Direct Marketing 222b 110b 88b Leading Global Life Sciences ($80M) ($89M) ($103M) Mexico MENA (Subsidiary/Branch) India Brazil 185b Domestic Diagnostic 35b Medical Aesthetics 150b 134b .Pharmaceutical Division High growth potential in emerging markets New growth driver in new therapeutic area Product Sales International Domestic (Bil KRW) Growth Strategy International .15% CAGR in emerging market growth .New Growth Driver 16b Contrast media Functional food Others 6b 2008 2009 2010(E) 2008 2009 2010(E) Slide 9 .

Tetanus toxoids.Haemophlis Influenzae type B . Pertussis .Hepatitis B .Selected R&D Pipeline Project DPP IV Indication Diabetes Hepatitis C Caspase Inhibitor NASH* NCE HBV Anti-obesity P2Y12 Inhibitor SR-hGH Biologics BEPO mAb (Biosimilar) Vaccine Combo-vaccine (5 in 1) Hepatitis B Anti-obesity Atherothrombosis Short Stature (Once a week) Anemia Arthritis DTP-HepB/Hib ** Phase II Phase II Pre-clinical Pre-clinical Phase III Pre-clinical Pre-clinical Phase III Takeda BioPartners (EU) Asia Global Global US/EU US/EU Global Emerging 2014 2011/12 2014 2014/15 2013 Status Phase III Phase II Gilead Global 2015 Partner DCPC (china) Market Emerging Launch(E) 2013 Slide 10 * NASH : Non-Alcoholic SteatoHepatitis ** Diphtheria.

The characteristic of Caspase Inhibitor Potential hepato-protective agent targeted for indications of NASH and HCV Deal Structure Up-front payment of $20m in 2007 2.Caspase Inhibitor Advancing therapy for liver diseases First-in-class opportunity Liver Disease Market 1. Major liver disease drug’s market size Disease Hepatitis C treatment Leading Global Life Sciences Paitients unresponsive to existing Hepatitis C drugs NSAH (Non-alcoholic steatohepatitis) (Source: Datamonitor) Market size $3bn $3bn $2bn Year L/O 2014 Milestone($180m) + Running royalties Mechanism of action Direct suppression of unwanted apoptotic liver cell death by potent inhibition of caspase. the major player for hepatic apoptosis Slide 11 .

Intense competition .5B (40%) US FDA Approval Approval for adult use Approval for pediatrics EU Leading Global Life Sciences 2. hGH Market Pathways to US market 2009 Finalizing Launch plan 2010 2011 2012 Japan US $1.Out-licensing First-In-Class Opportunity of Long-acting hGH Slide 12 .Co-Marketing . The characteristic of market .SR-hGH Building on First-In-Class opportunity in US market hGH market analysis 1.Unmet Needs for long-acting hGH .Small number of key doctors .

Generating Revs.Growth Pathway Geographical movement from domestic. Growth ~15% CAGR Value . emerging to US/EU markets Stabilization Expanding Revs. Vaccine) Domestic (New product line-up) Domestic (Core business) 2005 Slide 13 2011 2015 . Growth 20% ~ CAGR Performance 2nd Wave In-organic Growth + US/EU (Innovative Drugs) Leading Global Life Sciences 1st Wave Seven Emerging (Bio-similar.

The First Global Pharma in Korea US/EU Domestic 40% Emerging 320b Leading Global Life Sciences Emerging 40% 55% Growth Catalysts SR-hGH (2011) 5 in 1 Vaccine (2013) DPP-IV (2013) HBV (2014) BEPO (2014) mAb Biosimilar (2014) Caspase Inhibitor (2015) Slide 14 40% 5% US/EU 20% 2009 2015(E) . .

9 40.0 44% 9% .4 (8.1 (12.3 277.0 84.9%) 2009 327.Selected Financial Information (Unit: Bil KRW) 2008 281. R&D) R&D expenses Operating Income (As % of sales) Income before taxes Net Income (As % of sales) 21.8 305.6 47.0 110.3 156.2 (5.4%) 32.1 (8.7 40% 6% 493.8 27.6 15.6 76.2%) Sales Costs of sales SG&A (excl.2 46.6 25.7 134.3%) Assets Liabilities Stockholders' equity Debt to equity ratio ROE 388.9 132.

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