Lotte Chemical : Future Business or Management Plans (Fair Disclosure)

Future Business or Management Plans (Fair Disclosure)

※ The following is a future plan, which may be subject to change.
1. Title of business plan	LOTTE Chemical's ESG Growth Strategy and Future New Business Plan for Sustainable Growth
2. Details of plan and activity schedule	Purpose	Strenthen ESG competitiveness of existing businesses and establishment of a sustainable growth process by entering green new businesses
Details of plan	□ LOTTE Chemical Sales plan - '26 Sales 36 trillion won, '30 Sales 50 trillion won □ Green new businesses Sales plan - '26 Sales 5 trillion won, '30 Sales 12 trillion won - Sector by Sales (standard for '30) 1) Hydrogen energy business : 5 trillion won 2) Battery material business : 5 trillion won 3) Recycle/Bio Plastic business : 2 trillion won □ Entering Green new businesses for establishment of a sustainable growth system 1) Hydrogen energy business - Acquiring overseas ammonia / Gain leadership in Hydrogen business through Infrastructure establishment - Supply 1.2 mil ton of clean hydrogen in 2030, by focusing on importing ammonia, hydrogen and utilizing mixed combustion power generating business 2) Battery material business - Quantitative expansion of existing entry projects by entering the high-growth market - Additional entry into high value-added materials business 3) Recycle/Bio Plastic - Mechanical / Chemical recycling, Bio plastic product capacity expansion and technology acquisition □ ESG growth strategy 1) Carbon-reduced growth - '30 Goal : 25% reduced than '19(Peaked) - Improvement in energy efficiency in the short term, 2.97 million tons less than BAU in '30 through the application of renewable energy in the mid- to long-term 2) Join to Global Initiative RE100 in relation to carbon emissions - Declare RE 100 in 2022 / Join membership - Convert to renewable energy by 60%, 100%, in 2030 and 2050 respectively, through PPA contract and hydrogen energy utilization in both domestic/global sites 3) Strengthen shareholder return policy - Announcement of 3-year mid-term shareholder return policy (FY22 to FY24), 30% annual dividend payout ratio(individual Net income) - Interim dividend, Acquisition of treasury stocks : first introduction in 2022
Proposed schedule	Start date	-
End date	-
Expected investment amount (KRW)	Green new business (hydrogen, battery material, Recycle/Bio plastic) 11 trillion won or more (accumulated from 21 to 30 years)
Expected results	Increase corporate and shareholder value by expanding high value-added products and Green new businesses and promoting ESG growth strategy
3. Potential difficulties in implementation	-
4. Date of board resolution (decision date)	-
5. Details of information released	Information providers	LOTTE Chemical IR Team
Information recipients	Domestic institutional investors
Date & time of information released	2022-03-31
Title and place of event held	LOTTE Chemical CEO IR Day(Offline hosting)
6. Contact points (Dept. name/tel.)	IR Team([phone])
7. Other matters to be factored into investment decisions
- The figures in the above '2. Details of plan and attached document is promotion of our new business plan and mid-long term business strategy. To investor's understanding, We provided the document which includes the data about our prediction in future, plans, goals. Especially predctionm data may change in future market situation, business environment and business in progress. - There will be additional disclosure when making related investments about 'details of plan' in the above. - For more information on shareholder returns, please refer to 'Matters Related to Ad Hoc Public Disclosure Obligation' in 22th March, 2022 - For more details, please refer to the attached document of the disclosure or visit our website (https://www.lottechem.com/en/index.do)
Expected disclosure date of progress	-
※ Related disclosure	2022-03-29 Organization of Investor Relations Event