for Growth

Poised

Disclaimer
This IR Presentation contains forward-looking statements that are based on managements expectations, estimates, projections and assumptions. Actual results may differ from those we project and may be affected by the business environment, government regulation and legislation, financial market movement, or other factors. All forward-looking statements speak only as of the date of this report. 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, circumstances or changes in expectations after the date of this report. The Company has adopted its financial statements under International Financial Reporting Standards (IFRS) in 2010.

Slide 2

Agenda
Overview & Financial Highlight Product Sales & Pharma Div. R&D Pipeline Growth Pathway

Leading Global Life Sciences

Slide 3

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

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. Demerged from LG Chem. in 2002 3. One of LG Group affiliate
(Bil KRW)

Business Domain
- Revenues Breakdown (FY 2009)
Pharmaceutical Div. 270
(83%)
Vx Rx

Fine Chem Div. 57

(17%)
API Agrochemical

4. Korea leading life science company

Shareholding (As of FY2009)
Leading Global Life Sciences

30%, LG corp.* Market Cap. 1Tn KRW 11%, Mirae Asset 4%, National Pension Fund Dx

Others

Domestic 55%

Overseas 45%

* Koreas 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.`09)

Up 12%

Product Sales
(2009)

163

Up 7% 78 Up 160% 16

Up 8% 57

Leading Global Life Sciences

Biologics
Product
1st gen. Bio-drug (hGH. EPO. FSH)

Chemical Synthetics
CV franchise

Others
Diagnostic Medical Aesthetics* Contrast agent Functional food Others

Fine chem.
API Intermediate

Antibiotic Vaccine bST Bovine somatotropin Others Oncology Others

Agro-chemicals

Slide 8

* Plastic surgery & dermatology

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 - 80% of LGLSs 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

- New Growth Driver

16b

Contrast media Functional food Others

6b

2008

2009

2010(E)
2008 2009 2010(E)

Slide 9

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, Tetanus toxoids, Pertussis - Hepatitis B - Haemophlis Influenzae type B

Caspase Inhibitor
Advancing therapy for liver diseases First-in-class opportunity

Liver Disease Market

1. 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. Major liver disease drugs 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

SR-hGH
Building on First-In-Class opportunity in US market

hGH market analysis

1. hGH Market

Pathways to US market
2009 Finalizing Launch plan 2010 2011 2012

Japan US $1.5B (40%)

US FDA Approval

Approval for adult use Approval for pediatrics

EU

Leading Global Life Sciences

2. The characteristic of market

- Small number of key doctors - Intense competition - Unmet Needs for long-acting hGH

- Co-Marketing - Out-licensing

First-In-Class Opportunity of Long-acting hGH

Slide 12

Growth Pathway
Geographical movement from domestic, emerging to US/EU markets

Stabilization

Expanding
Revs. Growth ~15% CAGR

Value - Generating
Revs. Growth 20% ~ CAGR

Performance

2nd Wave

In-organic Growth

US/EU
(Innovative Drugs)
Leading Global Life Sciences

1st Wave
Seven Emerging
(Bio-similar, Vaccine) Domestic (New product line-up)

Domestic (Core business)

2005
Slide 13

2011

2015

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)

www.lgls.com

Selected Financial Information

(Unit: Bil KRW)

2008 281.9 132.6 76.6 47.6 25.1

(8.9%)

2009 327.3 156.0 84.2 46.9 40.1

(12.2%)

Sales Costs of sales SG&A (excl. R&D) R&D expenses Operating Income
(As % of sales)

Income before taxes Net Income

(As % of sales)

21.6 15.2
(5.4%)

32.8 27.4
(8.3%)

Assets Liabilities Stockholders' equity Debt to equity ratio ROE

388.0 110.3 277.7 40% 6%

493.7 134.8 305.0 44% 9%