In Investor Re Rela lation tions Nov. 2019 Disclaimer This - - PowerPoint PPT Presentation

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In Investor Re Rela lation tions

• Nov. 2019

SLIDE 2

This presentation was made as the dates shown and reflected management views as of these

• dates. All financial information regarding CJ corp. business results and forward looking statements

and beliefs about future events are subject to known risks and uncertainties that may cause actual results to differ from those stated or implied. The financial information in this document are consolidated earnings results based on K‐IFRS. These statements involve risks and uncertainties, and actual results may differ. CJ corp. is under no obligation or responsibility to update the information provided in the presentation in correspondence to their respective dates.

Disclaimer

SLIDE 3

CO CONTENTS

Company Over vervie iew

1. 1.

3Q19 19 Ear Earnin ings Revie eview

2. .

App ppendix

3. 3.

SLIDE 4

Company Overview

SLIDE 5

4

CO COMPANY OVERVIEW EW

Vis Visio ion

Cre reat ate a a New Cul ulture re For r Heal althy, Happy and d Convenient Lifestyles

s Missio ion

Contribute to

• th

the gl glob

• bal community

by by pr providing th the best t val value to

• our

r cus ustomers wi with ONLYO YONE pr prod

• ducts

s and servi rvice ces

Vision & Mission Co Core Business Are reas

Food

• od &

Food

• od

Se Servic ice Bio Entertain inment &Media ia

29% 17% 17% 37% 7%

* 2018 K-IFRS Consolidated, Revenue Breakdown

Retail il & Logis Logistic ics

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5

CO COMPANY OVERVIEW EW

[As of end of Dec, 2018] Listed *Note: Common Stock Basis

CJ Cheilchedang

CJ Foodville CJ Olive Networks

55.0% 44.6%

CJ CGV

39.0% 40.1% 96.0%

CJ Freshway

47.1%

Fo Food & Foo Food Se Service Bi Bio Ent ntertainment & & Media

CJ Hello

53.9%

CJ Logistics

40.1%

Re Retail & & Logistics

Studio Dragon

71.3%

Food BIO

CJ ENM

Ex.

O Shopping

Ex. E&M

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6

CO COMPANY OVERVIEW EW

CJ’s Globalization

94% Globa bal 6% 6% Do Domestic 94% 국내 73% 해외 27% Globa bal 29% Do Domestic 71%

Consolidated Revenue

2018

Note: K-IFRS Consolidated

2008

Fi Financial Sum Summary

[Unit: W Bn] 7,913 9,665 11,616 13,271 17,628 18,852 19,572 21,167 23,954 26,899 550 738 788 901 1,063 786 1,003 1,225 1,253 1,326

500 1,000 1,500 2,000 2,500 5,000 10,000 15,000 20,000 25,000 30,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue Operating Profit

Since the transition to a holdings company in September 2007, CJ Corp has achieved Sales CAGR of 14.6% and

• perating profit CAGR of 10.3% through adopting

“choose and focus” strategy on 4 core business areas. By the end of 2018, Company's total assets and revenue recorded KRW 31.7 trillion and KRW 29.5 trillion , which is 262% and 273% increase within past 10 years, respectively. Expand global presence of businesses which are already indisputably a domestic leader under the operations of CJCJ, CJ Logistics, CJ CGV and more Continue to increase global sales proportion which has seen a remarkable growth from 6% in 2008 up to 29% in 2018 Increase market share already at unwavering global No. 1 of major Bio products, namely lysine, nucleotides and tryptophan No.1 theater operator in Vietnam and Turkey

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CO COMPANY OVERVIEW EW

As As of En End of 2018 Ty Type No. . of Share res Stake Note Shares Common 29,176,998 Outstanding Preferred 2,260,223 Treasury Common 2,971,575 10% Shares Preferred 1,120 Major Shareholder Common 12,275,574 42%

[Unit: W Bn, %]

B/S B/S 2017 17 2018 18 P/L P/L 2017 17 2018 18 Asset 29,325 31,729 Revenue 26,899 29,523 Liability 17,333 19,207 Operating Profit 1,326 1,333 Equity 11,992 12,522 Net Income 1,137 880 Liability to Equity Ratio 145% 153% OP Margin 4.9% 4.5%

Note: K-IFRS Consolidated

Strengt gthen competitiveness ss and d maximize synergies s betw tween four core business ss areas s in the group



Foo Food & & Foo Food Ser ervic ices : Actively pursue global expansion based on the experience as the country’s leading producer and service provider



Bio io : Secure global No. 1 position in green bio with outstanding R&D and advanced technologies



Ret etail l & & Logis isti tics : Provide the largest total logistics services and operate the country’s top selling home shopping channel and Korea’s leading health & beauty (H&B) store brand



En Entert rtain inment & & Me Media ia: Create and produce contents unlimited to movies, music, drama and performance and operate the country’s largest movie theater complex

Bus Business Overview

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3Q19 Earnings Review

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3Q19: Revenue KRW 8,679.7bn (YoY +12.9%), OP KRW 426.8bn (YoY +5.0%)

: Growth led by CJCJ, CJ Logistics’ Parcel/Global and CJ ENM’s Commerce/Movie, OliveYoung business : OP increased with the best-ever performance record of CJ Logistics and improved profitabilities of CJ Freshway/OliveYoung

CJ CJ Co Corp. . 3Q 3Q19 Ea Earnings Review

Fi Financial Hi Highlights

[Unit : W Bn]

Enha Enhance ced mar arket t competitiv iveness ss in n al all four main n bus usiness ss ar areas, whi hich ha has s achi hieved more stabi ability in n di diversifie ied po portf tfolio

: Driving future growth through globalization - continuous endeavors in diversifying product portfolio within the Food business, setting the cornerstone by acquisition of local company at CJ Logistics and enhancing content producing capability at CJ ENM : Inter-sub synergies – business portfolio includes Food, Entertainment, Retail and Logistics, all of which are synergistic to one another, promoting further 1Q 18 18 2Q 2Q18 3Q 3Q18 4Q 4Q18 1Q 19 19 2Q 19 19 3Q 19 19 Revenue 6,974 7,063 7,675 7,801 7,795 8,454 8,680 Operating Profit 342 301 406 283 343 365 427 (%) 4.9% 4.3% 5.3% 3.6% 4.4% 4.3% 4.9%

[Unit : W Bn] 6,974 7,063 7,675 7,801 7,795 8,454 8,680 342 301 406 283 343 365 427

200 400 600 800 1,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

1Q 18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Revenue OP

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CJ CJ Co Corp. . 3Q 3Q19 Ea Earnings Review

3Q19 19 Operating Results by business 3Q18 3Q19 Yo YoY Food & Food Service 2,276 2,971 30.5% Bio 1,290 1,211

• 6.1%

Retail & Logistics 2,852 3,239 13.6% Entertainment & Media 1,266 1,258

• 0.6%

Others 2.1 1.5

• 28.6%

Total 7,686 8,680 12.9%

Revenue Op Operating Pr Prof

• fit

Stability of

• f the Business Por

Portfolio

Revenue Operating Profit

3Q18 3Q19 Yo YoY Food & Food Service 145 136

• 6.0%

Bio 69 58

• 16.5%

Retail & Logistics 93 151 63.1% Entertainment & Media 97 66

• 32.0%

Others

• 3

16 393.9% Total 406 427 5.0%

[Unit : W Bn] [Unit : W Bn]

Food & Food Service 30% Bio 17% Retai tail & Logi gisti tics 37% Ente tertai tainm ent t & Medi dia 16% Others 0% 0% Food & Food Service 34% Bio 14% Retai tail & Logi gisti tics 37% Ente tertai tainm ent t & Medi dia 14% Others 0% 0% Food & Food Service 36% Bio 17% Retai tail & Logi gisti tics 23% Ente tertai tainm ent t & Medi dia 24% Others

• 1%

1% Food & Food Service 32% Bio 14% Retai tail & Logi gisti tics 35% Ente tertai tainm ent t & Medi dia 15% Others 7% 7%

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Li Listed Subsidiaries

3Q1 Q19 Fi Financial Hi Highlights

Com Compa pany 3Q19 Hi Highlig ights W bn bn YoY CJCJ Revenue

3,446 +25.5% ∙ Up with effects of Schwan’s company acquisition and high growth of global processed food

OP

181

• 14.3% ∙ Down with burden of fixed cost of new factory and spread of ASF(African Swine Fever)

CJ Logistics Revenue

2,622 +8.4% ∙ Solid growth from global(+13.6%yoy) and parcel(+13.0%yoy) division

OP

89 +67.7% ∙ Recorded a historic high thanks to ASP hike, demarketing on low margin clients and restructuring of loss-

making business ENM Revenue

1,153 +6.9% ∙ Up with overall growth by enhancing differentiated content competitiveness and production capabilities

OP 64

• 16.3% ∙ Despite commerce’s own brand enhancement and an expansion of film production,

decreased due to sluggish of consolidated CJ Hello’s profit (-17bn yoy) CGV Revenue

498 +5.2% ∙ Up with high growth of the number of theaters and box offices in Indonesia/Vietnam

OP

31

• 4.9% ∙ Decreased due to lack of blockbuster line-up globally and sluggish box office in china

FreshWay Revenue

770 +9.3% ∙ Up with growth of food material distribution and food catering service through selective new orders

centered on profitability OP

18 +32.8% ∙ Up with improving profitability due to efficiency of logistics and adjustment of contract terms for major

trading lines of food catering service ※ CJCJ excluding CJ Logistics

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Un Unli list sted Sub ubsi sidiary : CJ J Oli liveN eNet etworks

B/S B/S 2017 17 2018 18 P/L P/L 2017 17 2018 18 Asset 1,152.6 1,258.5 Revenue 2,067.4 2,343.6 Liability 668.1 730.7 Operating Profit 116.2 85.3 Equity 484.5 527.8 Net Income 81.3 59.9 Liability to Equity ratio 138% 138% OP Margin 5.6% 3.6%

[Unit: W Bn, %]

Business Overview

CJ OliveNetworks operates Korea’s leading health & beauty (H&B) store, CJ Olive Young, and IT service. CJ OliveNetworks’ Olive Young BU is an undisputed leader in Korea’s H&B Store industry with its domestic store chain numbered 1,238 stores, as the end of 3Q19

Fi Financial Hi Highlights Bus Business Ov Overview

Olive young 80% IT 20%

FY18, Sales Portion (domestics) 469 594 815 935 1,142 1,556 2,067 2,344 27 26 30 58 80 93 116 85

• 20

20 60 100 140 180

• 300

100 500 900 1,300 1,700 2,100 2,500 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 Revenue Operating Profit

[Unit: W Bn] * Note: K-IFRS Consolidated basis, 2011~2014 financial results were based on the sum of CJ OliveYoung and CJ Systems * Note: K-IFRS Consolidated basis

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Fi Financial Hi Highlights

3Q19: Revenue KRW 604.8bn (YoY +12.3%), NI KRW 27.2bn(YoY +20.9%)

• [Re

[Revenue] Up p with ith expa pansio ion of the number of sto tores and GMV, , high gro growth th of onli line busin iness and SM M ser ervic ice sale les ∙ (OliveYoung) Increased 14.7%yoy thanks to growth in SSSG, the number of stores and online business ∙ (IT) Up 2.5%yoy with use of IDC/payment solution/messaging service increased, despite slowed down on new SI orders * Increased 5.3%yoy based on revenue that IT provided to OliveYoung, but only costs are recognized and revenue is not recognized, such as in-house sales of IT

• [NI]

[NI] Up p with ith SSSG gro growth due e to expa pansio ion of GMV and high gro growth of onlin ine busin iness

• 1,23

,238 sto tores (99 995 direct t ma management t stores, , 243 43 fra ranch chised sto tores, , up p +5 sto tores from the end of 2Q19 19, +40 40 sto tores from end d of 4Q18) 8)

• Stre

trengthen ma mark rket domin inance through contin inuous sto tore ope penin ing and incr creasin ing rev evenue per er sto tore (H& H&B ma mark rket share 68.2 8.2%)

* Based on K-IFRS Separate, not reflected internal transactions between OY and IT businesses

1Q Q 18 2Q Q 18 3Q1 Q18 4Q1 Q18 1Q Q 19 2Q1 Q19 3Q1 Q19 Revenue 465 525 538 556 558 592 605 OY 375 425 435 425 456 485 499 IT 91 100 103 131 102 107 106 Net Income 18 17 23

• 6

26 29 27 Store (Domestic) 1,104 1,144 1,178 1,198 1,214 1,233 1,238 Direct Control 891 925 952 966 980 992 995 Franchise 213 219 226 232 234 241 243

Un Unli list sted Sub ubsi sidiary : CJ J Oli liveN eNet etworks

[Unit: W Bn] [Unit: W Bn] 465 525 538 556 558 592 605 18 17 23

• 6

26 29 27

(20) 20 40 60 80 100 100 200 300 400 500 600 700 1Q18 2Q 18 3Q18 4Q18 1Q19 2Q19 3Q19 Revenue Net income

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Unlisted Subs bsidiary : CJ CJ Fo Foodville

As the end of 3Q19, operating 1,434 sites in domestics and 194 sites in overseas Implement strategies for improving domestic and overseas business structures and promote further growth by constantly creating brands including “Tous Les Jours”, “VIPS”, “Season’s Table”, “The Place”

B/S B/S 2017 17 2018 18 P/L P/L 2017 17 2017 17 Asset 643.5 732.1 Revenue 1,427.5 1,371.6 Liability 680.5 721.1 Operating Profit

• 3.8
• 43.4

Equity

• 37.0

11.0 Net Income

• 32.5
• 128.3

Liability to Equity Ratio

• 6,555.5%

OP Margin

• 0.3%
• 3.2%

Fi Financial Hi Highlights Bus Business Overview

프렌차이즈 51%

[Unit: W Bn] [Unit: W Bn, %] * Note: K-IFRS Consolidated basis 903 1,097 1,220 1,328 1,392 1,428 1,318

• 4
• 35

4

• 4
• 2
• 4
• 43

(60) 60 120 400 800 1,200 1,600 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 Revenue Operating Profit Franchi se se 55% 55%

Franchise Restaurant 68% 32%

FY18, Sales Portion (domestics)

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Fi Financial Hi Highlights

3Q19: Revenue KRW 197.9bn (YoY -33.8%), NI KRW -10.3bn (YoY Turn Neg)

• [Re

[Revenue] Dec ecreased with ith exclu cludin ing Tw Twosome Pl Place sale les by selli elling shares and clos losing wea eak per erformance sto tores based d on the stra trategy for r impr provin ing the busin iness stru tructu ture (Ex Exclu cludin ing Tw Twosome Pl Place -13 13.0 .0%yoy)

• [NI]

[NI] Up p with ith stra trategie ies for r impr mproving domestic ic and ove verseas busin iness stru tructu tures (De Defic icit it impr mproved by 7.1b .1bn, , excl cluding Tw Twosome Pl Place) ∙ Excluding Twosome Place’s P/L, 3Q18 Revenue 228bn, NI -17bn

• Pu

Purs rsuin ing contin inuous key ey bra rands gro growth and enhancin ing bra rand d competit itiv iveness

1Q Q 18 2Q Q 18 3Q Q 18 4Q1 Q18 1Q Q 19 2Q Q 19 3Q Q 19 Revenue 311 303 299 339 301 288 198 Net Income 124

• 34

1

• 74

14 178

• 10

Site(Domestic) 2,509 2,550 2,557 2,566 2,558 2,954 1,628 Direct Control 279 279 274 252 230 237 141 Franchise 2,230 2,271 2,283 2,314 2,328 2,359 1,293 Overseas site 426 421 418 380 372 358 194

Unlisted Subs bsidiary : CJ CJ Fo Foodville

[Unit: W Bn] * K-IFRS Separate * Simple sum of “Foodville” and “Twosome Place”, “Twosome Place” P/L excluded from 3Q19 [Unit: W Bn] 311 303 299 339 301 288 198 124

• 34

1

• 74

14 178

• 10
• 100

100 200 300 400 500 150 180 210 240 270 300 330 1Q 18 2Q 18 3Q 18 4Q18 1Q 19 2Q 19 3Q19 Revenue Net income

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CJ Group’s Management Paradigm Shift

Transition from ‘Quantitative Growth’ to ‘Qualitative Growth’‘

To cope e with th th the deteriora ration of

• f th

the e bus usiness ss envi nvironment, CJ J Group ha has shi shifted its ts management stra rategy gy para paradigm from ‘Quantitative Growth’ to ‘Qualitative Growth’ and focused on improving profitability and financial structure

• Worsenin

ing domestic ic/glo lobal l busin iness envir ironment and d incr creasin ing possibi bili lity of eco conomic ic rec ecessio ion

• CJ

CJ Gro roup, , des espit ite quanti tita tativ ive gr growth th, , del elayed pro rofit itabil ility ty and the pace of impro provement t in its financia ial l stu tucture

[Key Strategies s of

• f Maj

Major Subsidiaries] s]

 Maximiz ize Ex Existing g Bu Business Prof

• fita

tability

Achieve global enterprise-level profitability of major businesses/items through selection, concentration and the business structure improvement

 Less ss Ad Additional Larg arge-scale M&A

Temporary suspension of large-scale investments and M&As, only selectively invest to secure core competencies Idle asset securitization, Efficient management of working capital, Minimize investment, Raising capital via overseas subsidiaries Temporary suspension of large-scale investments and M&As, Maximize profitability (Expand new pricing-table application on parcel business etc.) Increase profitability through an efficiency

• f content production costs and business

expansion to new digital/global markets Improve financial structure through (pre-)IPOs of overseas subsidiaries, enhance profitability of domestic business Streamline logistics operations, selective new orders centered on profitability, invest focused on strengthening core competencies such as preprocessing CK/logistics infrastructure etc.

 Fo Focus on Im Improving Financia ial St Structure

Financial structure improvement through non-core assets/businesses securitization Improve mid-to long-term financial structure and reduce financial costs by increasing business profitability

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Appendix

SLIDE 19

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Fin Financial st statement

Co Consolidated St Statements

2018 3Q19 YoY I.

• I. Curre

rent As Assets sets 8,867 10,166 1,299

• 1. Cash and Cash Equivalents

1,474 1,453

• 21
• 2. Short-term Financial Instruments

163 248 85

• 3. Trade Receivables

3,535 3,832 297

• 4. Inventories

2,024 2,639 615

• 5. Other Current Assets

1,672 1,994 322 II II. . Non-Curr rrent As Asset sets Held for Sale 2 1

• 1

II III. . Non-Curr rrent As Asset sets 22,860 31,287 8,427 To Total As Asset set 31,7 ,730 41,4 ,453 9,723 I.

• I. Curre

rent Liabilitities 10,998 13,746 2,748 II III. . Non-Curr rrent Liabilitities 8,209 13,070 4,861 To Total Liabilities 19,2 ,208 26,8 ,816 7,608 I. I.Equ Equity At Attri ributable to Owners rs

• f the Company

4,059 4,443 384

• 1. Capital Stock

158 179 21

• 2. Paid-in Capital

in Excess of Par Value 993 993

• 3. Other Components of Equity
• 429
• 303

124

• 4. Retained Earnings

3,336 3,574 238 II II. . Non-Contro rolling In Intere rest 8,463 10,195 1,732 To Total Equ Equity 12,5 ,522 14,6 ,638 2,116 Debt bt Ra Ratio 15 153.4 .4% 18 183.2 .2% 29 29.8 .8%pt.

[Unit: W Bn] [Unit: W Bn] 3Q18 3Q19 YOY

I.

• I. Re

Revenue

7,68 686.1 6.1 8,67 679.7 9.7 12.9% .9%

• II. COGS

5,459.5 6,363.6 16.6%

• III. Gross Profit

2,226.6 2,316.1 4.0%

IV.

• IV. Ope

pera rating g Pr Profit

406.4 6.4 426.8 6.8 5.0% 0%

• V. Profit before Income Tax

258.1 167.5

• 35.1%
• VI. Tax Expenses

115.5 94.1

• 18.5%

VII VII. . Net Pr Profit

142.6 2.6 73.4 .4

• 48.5%

8.5%

• 1. Profit Attributable to

Owners of the Company

7.1 32.0 350.7%

• 2. Profit Attributable to

Non-Controlling Interests

135.5 41.4

• 69.4%

3Q1 Q18 8 cum. 3Q1 Q19 9 cum. YOY

I.

• I. Re

Revenue

21,722 ,722.8 .8 24,928 ,928.4 .4 14.8% .8%

• II. COGS

15,445.1 18,137.6 17.4%

• III. Gross Profit

6,277.7 6,790.8 8.2%

IV.

• IV. Ope

pera rating g Pr Profit

1,04 049.2 9.2 1,13 135.3 5.3 8.2% 2%

• V. Profit before Income Tax

1,656.6 700.9

• 57.7%
• VI. Tax Expenses

469.4 222.8

• 52.5%

VII VII. . Net Pr Profit

1,18 187.2 7.2 478.1 8.1

• 59.7%

9.7%

• 1. Profit Attributable to

Owners of the Company

457.3 295.5

• 35.4%
• 2. Profit Attributable to

Non-Controlling Interests

729.9 182.6

• 75.0%

[Unit: W Bn]

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Fin Financial st statement

Se Separate St Statements

20 2018 3Q 3Q19 YoY

• Y
• I. Current Assets

54 37

• 17
• 1. Cash and Cash Equivalents

31 2

• 29
• 3. Other Current Assets

23 35 12

• II. Non-Current Assets

2,758 2,777 19 To Total As Asset set 2,812 2,813 1

• I. Current Liabilitities

50 45

• 5
• II. Non-Current Liabilitities

109 109

• To

Total Liabilities 158 158 154 154

• 4
• I. Capital Stock

158 179 21

• II. Paid-in Capital in Excess of Par Value

993 993

• III. Other Components of Equity
• 216
• 217
• 1
• IV. Retained Earnings

1,719 1,704

• 15

To Total Equ Equity 2,654 2,659 6 Debt bt Ra Ratio 6.0% 5.8%

• 0.2%pt.

[Unit: W Bn] [Unit: W Bn] 3Q1 Q18 3Q1 Q19 YOY

I.

• I. Ope

pera rating Re Revenue

26.2 .2 26.8 .8 2.3% 3%

• Royalty Income

25.1 25.2 0.4%

• Dividend Income
• Others

1.1 1.6 45.5%

• II. Operating Expenses

14.9 15.1 1.3%

II III. . Ope pera rating Pr Profit

11.3 .3 11.6 .6 2.7% 7%

• IV. Profit before Income Tax

Benefit(Expense)

5.2 16.1 209.6%

• V. Income Tax

Benefit(Expense)

1.3 3.7 184.6%

VI.

• VI. Net Pr

Profit

4.0 12.4 .4 210.0% 0.0% 3Q1 Q18 8 cum. 3Q1 Q19 9 cum. YOY

I.

• I. Ope

pera rating Re Revenue

110.9 0.9 120.6 0.6 8.7% 7%

• Royalty Income

69.4 70.6 18.3%

• Dividend Income

38.3 45.3 1.7%

• Others

3.2 4.7 46.9%

• II. Operating Expenses

40.7 56.0 37.6%

II III. . Ope pera rating Pr Profit

70.2 .2 64.6 .6

• 8.0%

.0%

• IV. Profit before Income Tax

Benefit(Expense)

27.7 50.0 80.5%

• V. Income Tax

Benefit(Expense)

0.2 2.6 1,200.0%

VI.

• VI. Net Pr

Profit

27.5 .5 47.4 .4 72.4% .4% [Unit: W Bn]

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Thank you