2019

Aug.8, 2019
LOTTE GROUP (1948 ~ )
I . LOTTE

11% 29% 20% 33% 7%

 
 
 

2
 steadily climbed up the charts to become
the 5th largest business group in Korea I . LOTTE

Rank
1990 2000 2017 Asset (US$ bn) Debt rate(%)
(Asset)

1 Hyundai Hyundai Samsung 358 40.8

2 Daewoo¹ Samsung Hyundai Motor 200 54.6

3 LG LG SK 170 68.4

4 Samsung SK LG 110 88.3

5 Hanjin Hanjin

6 SK POSCO 71 41.4

7 Ssang Yong1 Daewoo GS 58 111.1

8 Kumho Hanwha 55 104.5

9 Kia1 Hanwha Hyundai Heavy lnd 50 79.2

10 Hanwha Ssang Yong Shinsegae 31 78.2

1USD=1,000KRW
3
LOTTE Group US Business
I . LOTTE
US “LOTTE New York Palace Hotel”

President Moon Jae-in, President Donald Trump

1) Acquisition date : June, 2015 A stately and historic landmark in Midtown
2) Acquisition cost : $805million Manhattan, Lotte New York Palace has long
3) 909 rooms, 23 event halls reigned as New York City’s most iconic and
4) Address instantly recognizable hotel.
: 455 Madison Ave. New York, NY, 10022
President Moon and President Trump met in a
5) Top 10 Hotels in NYC, summit at the Lotte Palace Hotel during the UN
‘17 World Best Award General Assembly meetings on Sept. 21, 2018.

4
LOTTE Chemical (1976 ~ )
II . LOTTE Chemical

 Revenue : $20Bn (2018)

 Product : Ethylene(4,500KT/Y), PE(2,500KT/Y), PP(1,800KT/Y), EG(1,800KT/Y)
 Korea : 3,161 employees, 3 Production Sites, 1 R&D Center
4 Subsidiaries, 7 Affiliates
 China : 6 Subsidiaries, 5 Branches
 World : 16 Subsidiaries, 12 Branches

KOREA CHINA World

Russia
UK Poland
Headquarter (Seoul) Beijing
Uzbekistan
Daesan USA
Qingdao Turkey Tokyo
Alabama
R&D Center
Pakistan Louisiana
Ulsan
Chongqing Malaysia Vietnam
Indonesia
Yeosu
Guangzhou ShenZhen Peru

5
LOTTE Chemical Sales
II . LOTTE Chemical

Production by Sales by Sales by Sales by

Region Company Region Product

OTHERS 5%
PC/MMA 5%

PTA/PET 14
%
LOTTE 58
KOREA 55% 19
CHEMICA % NC/BTX
L %
KOREA 78%

13
BD/SM
%

ASIA 10% EO/EG 13

LC TITAN 14 %
%
LCPL 3% 16
LCUK 3% CHINA 20% PP
%

ASIA 18% LAM 17%

EUROPE 8% 17
PE %
EUROPE 3% OTHERS 7%
OTHERS 5%
CHINA 1%

* As of 2018 Consolidated * As of 2018 Lotte Chemical Separated

6
 International Ranking of Chemical Companies
II . LOTTE Chemical

 Based on Aggressive business expanding, with the new projects start-up

(Indonesia,Korea,etc), Lotte Chemical will be expected to rank 11th internationally
(Unit : Billion $)

Global Top 5
82

72

61 59 57 56

38 11th
27.3 19th
25 24 23 22
21.6
...
...

BASF Sinopec SABIC Exxon Dow Shell Lyondell Formosa Sumitomo Mitsubishi LG LOTTE
Chem -Basell Plastics Chem Chem Chem Chem

11th 16th
Source: Chemical Week 7
LOTTE CHEMICAL USA III . LA Project Overview

Mining Transfer, Storage, Separation Ethane Cracker/ Derivatives

Gas Field Methane LNG Export

90%
(NG) Heating
Gas
Separation Propane
55% Lotte Chemical
10% LIQUID Etc.
LACC LCLA
(NGL)
45% Ethane
C2~C5

Ethylene EG

Lotte Chemical LACC LCLA Total

100%
Westlake Product Ethylene EG -
LC USA
12% 88% 100% Revenue* $600 mil $800 mil $1,400 mil

LACC LCLA Investment $2.0 Bn $1.1 Bn $3.1 Bn

Ethylene EG
(1 MMtons) (700 ktons) Employee 150 100 250
* Revenue is estimation and depends on the price of product.

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Progress of the project
III . LA Project Overview
III . LA Project Overview

 ECC Feed in (‘19.5)

 EG Feed in (‘19.1)

 Mechanical
Completion(‘18.10)
Pre-commissionning (’18.7) Utility(‘18.8)

Cracker Heater installation(‘18.4) Power Energizing(‘18.5)

EG reactor installation(‘17.8) SQE Module installation(‘17.11)

Wash tower installation(‘17.10)

Ground Breaking Ceremony(‘16.6.14)

Steel structure works(‘17.2)
 FID(‘15. 12. 18) Piling Work start(‘16.12)

Shale gas LC USA (‘14.4) Site Preparation Start(‘16.1)

TFT (‘12.6)
EPC Work Start(’15.8)
MEG(LCLA)(‘15.8)
Cracker(LACC)(‘15.6)

* EPC is total process for the construction of the plant.

(Engineering / Procurement / Construction)

9
Project Site Location
III.신규사업현황
III . LA Project Overview

• From Houston : 150 miles to East

• From Baton Rouge : 155 miles to West

Louisiana, Lake Charles

Westlake plant

Area
Cracker Project Site
26 acres 242 Acre
/Utility
EG 20 acres
Future 16 acres
OSBL
180 acres
/Laydown
Total 242 acres

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2030 LC USA Vision

Vision US Leading Chemical Company

Target Revenue $11bn Profit ratio 20%

C2 Business & Specialty

C3/ C1 Business
Strategy Downstream Business
Entry
Expansion M&A

11
 2030 LC USA Business Road Map to Accomplishment

(Unit : $ bn)
C2 Business& C3/ C1 Specialty
strategy Downstream Business Business
Expansion Entry M&A

12.5 12.5
CAGR
29%
M&A 7.6

4.9
4.3 0.6
2.5 1.8
1.5 1.0
0.8 0.7

C2 Existing C2 Expansion C3 D/S C2 NEW C1 VISION

M&A
(Cracker & EG) (HDPE) (PDH / PP) (Cracker, EG, PE) (MeOH) 2030
Investment 3.1 1.3 2.8 6 1.3 – –
• Cracker:1,500KTA
• Cracker:
Capacity • Cracker:400KTA • PDH : 750KTA • MEG : 700KTA • MeOH :
– 25% of LCC
1,000KTA
• HDPE :400KTA • PP : 800KTA • HDPE : 500KTA 1,750KTA Revenue
• MEG : 700KTA
• LLDPE : 500KTA