Lotte Holdings Announces Value-Up Plan... "Aiming for Over 35% Shareholder Return Rate and Considering Treasury Stock Cancellation"

Lotte Holdings announced a value enhancement (value-up) plan aiming for a shareholder return ratio of over 35% by 2026.

On the 26th, Lotte Holdings disclosed the '2024 Lotte Holdings Value Enhancement Plan.' Lotte Holdings analyzed that its relatively low price-to-book ratio (PBR) compared to six companies including SK and LG was due to the relative underperformance of its main business results. To address this, Lotte Holdings explained that portfolio management is necessary.

In the portfolio, it stated that it is actively fostering four new growth businesses alongside the existing four core businesses (food, distribution, chemicals, infrastructure). The new growth businesses include ▲ Lotte Biologics' contract development and manufacturing organization (CDMO) business for pharmaceuticals ▲ electric vehicle charging infrastructure ▲ secondary battery materials ▲ and Lotte Innovate's metaverse platform Caliverse.

Lotte Holdings analyzed that although its dividend payout ratio and dividend yield are higher than those of comparable companies, its treasury stock ratio is high at 32.5%. To enhance value, it set goals to increase the value of investment stocks, strengthen shareholder returns, and lead ESG (environmental, social, and governance) management. According to the disclosure, Lotte Holdings aims to maintain a shareholder return ratio of over 35% from this year through 2026. Additionally, it announced that it will consider interim dividends and treasury stock cancellations.

Lotte Wellfood set targets for overseas sales to account for over 35% by 2028 and a return on equity (ROE) of 8?10%. Lotte Chilsung Beverage set goals of KRW 5.5 trillion in sales, 10?15% ROE, and a debt ratio below 100% by 2028. Lotte Shopping's sales target for 2030 is KRW 20 trillion (KRW 3 trillion overseas), operating profit of KRW 1.3 trillion, and a minimum dividend per share of KRW 3,500.

Lotte GRS presented goals to strengthen profitability and brands such as Lotteria and Krispy Kreme, improve Angel-in-us Coffee's performance, and launch new brands. Korea Seven, which operates the convenience store Seven Eleven, aims to turn operating profit positive through opening high-quality stores and streamlining low-profit stores. Lotte Biologics set a goal to successfully establish the first plant of the Songdo Bio Campus.

Furthermore, as of last year, the proportion of female employees at Lotte Group was 30%. The employment rate of persons with disabilities was 3.2%, exceeding the legal obligation of 3.1%.