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

SLIDE 1

In Investor Re Rela lation tions

• AUG. 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

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CO CONTENTS

Company Over vervie iew

1. 1.

2Q19 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 Retail il & Logis Logistic ics Syn Synergy &Infr fra

29% 17% 37% 0% 17%

* 2018 K-IFRS Consolidated, Revenue Breakdown

Entertain inment & Media ia

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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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2Q19 Earnings Review

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2Q19: Revenue KRW 8,453.7bn (YoY +19.7%), OP KRW 365.2bn (YoY +21.2%)

: Growth led by CJCJ’s Food(Schwan’s newly inclusion)/Bio, CJ Logistics’ Global/Parcel and CJ ENM’s Media/Commerce business : OP increased with improved profitabilities of CGV(7,733.3%yoy), CJ Logistics(+25.6%yoy), ENM(26.0%yoy), OliveNetworks(24.0%yoy)

CJ CJ Co Corp. . 2Q 2Q19 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 Revenue 6,974 7,063 7,675 7,801 7,795 8,454 Operating Profit 342 301 406 283 343 365 (%) 4.9% 4.3% 5.3% 3.6% 4.4% 4.3%

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

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

Revenue OP

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CJ CJ Co Corp. . 2Q 2Q19 Ea Earnings Review

2Q19 19 Operating Results by business 2Q18 2Q19 Yo YoY Food & Food Service 2,085 2,771 32.9% Bio 1,111 1,199 8.0% Retail & Logistics 2,710 3,075 13.5% Entertainment & Media 1,155 1,407 21.8% Others 2.0 1.7

• 15.0%

Total 7,063 8,454 19.7%

Revenue Op Operating Pr Prof

• fit

Stability of

• f the Business Por

Portfolio

Revenue Operating Profit

2Q18 2Q19 Yo YoY Food & Food Service 76 79 3.9% Bio 70 59

• 16.0%

Retail & Logistics 111 147 31.7% Entertainment & Media 48 87 83.9% Others

• 4
• 7
• 78.0%

Total 301 365 21.2%

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

Food & Food Service 30% Bio 16% Retai tail & Logi gisti tics 38% Ente tertai tainm ent t & Medi dia 16% Others 0% 0% Food & Food Service 33% Bio 14% Retai tail & Logi gisti tics 36% Ente tertai tainm ent t & Medi dia 17% Others 0% 0% Food & Food Service 25% Bio 23% Retai tail & Logi gisti tics 37% Ente tertai tainm ent t & Medi dia 16% Others

• 1%

1% Food & Food Service 22% Bio 16% Retai tail & Logi gisti tics 40% Ente tertai tainm ent t & Medi dia 24% Others 7% 7%

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Li Listed Subsidiaries

2Q1 Q19 Fi Financial Hi Highlights

Com Compa pany 2Q19 Hi Highlig ights W bn bn YoY CJCJ Revenue

3,186 +34.6% ∙ Up with processed food on the back of Schwan’s company acquisition and growth from Bio

OP

105

• 19.7% ∙ Down with increased promotional costs, burden of fixed costs on a new factory and ASF

CJ Logistics Revenue

2,535 +11.0% ∙ Solid growth from global(+25.4%yoy) and parcel(+9.6%yoy) division

OP

72 +25.7% ∙ Up with the increase in strategic selling prices and operational efficiency in each sector

ENM Revenue

1,260 +20.1% ∙ Solid growth driven by Media(+15.4%yoy), Commerce(+16.3%yoy), Movie(+88.2%yoy), Music(131.2%yoy)

OP 97 +22.3% ∙ Up with growth of ads/contents sales and commerce portfolio reorganized based on high-yield products CGV Revenue

482 +19.0% ∙ Up with robust growth in Korea(+20.3%yoy), China(+27.3%yoy) and Vietnam(+32.5%yoy)

OP

24 +7,733.3% ∙ Up with increased number of audiences due to market growth and efforts to increase non-ticket sales

FreshWay Revenue

757 +3.8% ∙ Solid growth from food material distribution(+4.5%yoy) and food catering service(+13.5%yoy)

OP

19 +40.6% ∙ Up with improving profitability on food catering service and food material distribution

※ 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 1,233 stores, as the end of 2Q19

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

2Q19: Revenue KRW 609.6bn (YoY +16.2%), NI KRW 29.6bn(YoY +74.1%)

• 1,233stores (992 direct management stores, 241 franchised stores, up +19 stores from the end of 1Q19, +35 stores from end of 4Q18
• [Revenue] Up with new olive-young online sales increase and new SI project orders on IT business
• [NI] Up with olive-young’s same store sales and online sales growth
• Strengthen market dominance through continuous store opening and increasing revenue per store (H&B market share 68.0% )

* K-IFRS Separate

1Q Q 18 2Q Q 18 3Q1 Q18 4Q1 Q18 1Q Q 19 2Q1 Q19 Revenue 465 525 538 556 558 610 OY 375 425 435 425 456 485 IT 91 100 103 131 102 125 Net Income 18 17 23

• 6

26 30 Store (Domestic) 1,104 1,144 1,178 1,198 1,214 1,233 Direct Control 891 925 952 966 980 992 Franchise 213 219 226 232 234 241

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

[Unit: W Bn] [Unit: W Bn] 465 525 538 556 558 610 18 17 23

• 6

26 30

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

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[Revenue] Increased 10.5% with SI project orders and SM service area expansion and service revenue growth

• Won new SI project such as CJCJ and OliveYoung online

malls, CJ Logistics’ Yangji-hub infrastructure etc. and new business SI orders such as factory operation system, smart store etc.

• Expand SM service billing scope and group’s common

service usage as a result of group business’ expansion

• Increased use of IDC(Internet Data Center) and payment

solution/messaging service

[OP] Increased 24.0% with revenue growth and cost efficiencies (streamlining HR resources operation per project)

1 On a separated P/L basis(1H’18 is a figure that has not been reviewed by an external accounting firm)

[ [ IT IT bus usiness ss P/ P/L L Summary 1]

(Unit: W Bn) 1H’18 1H’19 YoY

• Y

(%,%p) (W Bn)

Revenue

205.4 227.0 10.5% 21.5

Operating Profit

16.3 20.3 24.0% 3.9

OPM(%)

8.0% 8.9% 0.9%p

• EBIT

29.6 31.4 6.2% 1.8

Net Income

23.6 24.0 1.8% 0.4

(Unit: W Bn) 1H’18 1H’19 YoY

• Y

(%,%p) (W Bn)

Revenue

796.3 940.7 18.1% 144.4

*Online P.P(%)

7.1% 9.8% 2.8%

• Operating Profit

18.7 47.0 151.2% 28.3

OPM(%)

2.3% 5.0% 2.6%

EBIT

14.0 40.3 187.5% 26.3

Net Income

11.9 31.9 168.6% 20.0

[ [ Oliv iveYoung bus usiness ss P/ P/L L Summary 1]

Un Unli list sted Sub ubsi sidiary : CJ J Oli liveN eNet etworks -1H 1H19 Ope

perating Results by bus business

[Revenue] Increased 18.1% by SSSG and online sales growth(+65%)

• 1,144 Stores(1H’18)⇒1,233 Stores(1H’19)
• Reinforce skincare(base) and expand premium beauty

brands

• Strong sales(Mar/Jun) based on SNS usage marketing

and new events such as ‘first-come-first-served special price’

[OP] Increased 151%yoy due to improvement of interstore carnivalization according to change of store stragegy based on profitability, expansion of high efficiency beauty MD(base/color etc.) and efficiency of labor and rental costs

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Unlisted Subs bsidiary : CJ CJ Fo Foodville

As the end of 2Q19, operating 2,596 sites in domestics and 358 sites in overseas Implement strategies for improving domestic and overseas business structures and promote further growth by constantly creating brands including “Tous Les Jours”, “A Twosome Place”, “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

2Q19: Revenue KRW 288.2bn (YoY -4.9%), NI KRW 178.1bn (YoY Turn Pos)

• [Revenue] Slightly decreased with closing weak performance stores despite sales growth of Tous Les Jours and Twosome Place
• [NI] Up with strategies for improving domestic and overseas business structures (FV sold a part of Twosome Place stakes in 2Q19)
• Pursuing continuous key brands growth and enhancing brand competitiveness

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

• 34

1

• 74

14 178 Site(Domestic) 2,509 2,550 2,557 2,566 2,558 2,954 Direct Control 279 279 274 252 230 237 Franchise 2,230 2,271 2,283 2,314 2,328 2,359 Overseas site 426 421 418 380 372 358

Unlisted Subs bsidiary : CJ CJ Fo Foodville

[Unit: W Bn] * K-IFRS Separate * Sum of “Foodville” and “Twosome Place” [Unit: W Bn] 311 303 299 339 301 288 124

• 34

1

• 74

14 178

• 100

100 200 300 400 500 220 250 280 310 340 1Q 18 2Q 18 3Q 18 4Q18 1Q 19 2Q 19 Revenue Net income

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Appendix

SLIDE 19

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Fin Financial st statement

Co Consolidated St Statements

2018 2Q19 YoY I.

• I. Curre

rent As Assets sets 8,867 10,103 1,236

• 1. Cash and Cash Equivalents

1,474 1,458

• 16
• 2. Short-term Financial Instruments

163 253 90

• 3. Trade Receivables

3,535 3,785 251

• 4. Inventories

2,024 2,681 657

• 5. Other Current Assets

1,672 1,926 254 II II. . Non-Curr rrent As Asset sets Held for Sale 2 1

• 1

II III. . Non-Curr rrent As Asset sets 22,860 30,622 7,762 To Total As Asset set 31,7 ,730 40,7 ,726 8,996 I.

• I. Curre

rent Liabilitities 10,998 13,546 2,548 II III. . Non-Curr rrent Liabilitities 8,209 12,888 4,678 To Total Liabilities 19,2 ,208 26,4 ,434 7,226 I. I.Equ Equity At Attri ributable to Owners rs

• f the Company

4,059 4,362 303

• 1. Capital Stock

158 179 21

• 2. Paid-in Capital

in Excess of Par Value 993 993

• 3. Other Components of Equity
• 429
• 351

78

• 4. Retained Earnings

3,336 3,541 205 II II. . Non-Contro rolling In Intere rest 8,463 9,930 1,467 To Total Equ Equity 12,5 ,522 14,2 ,292 1,770 Debt bt Ra Ratio 15 153.4 .4% 18 185.0 .0% 31 31.6 .6%pt.

[Unit: W Bn] [Unit: W Bn] 2Q18 2Q19 YOY

I.

• I. Re

Revenue

7,06 062.5 2.5 8,45 453.7 3.7 19.7% .7%

• II. COGS

5,075.3 6,134.0 20.9%

• III. Gross Profit

1,987.2 2,319.7 16.7%

IV.

• IV. Ope

pera rating g Pr Profit

301.3 1.3 365.2 5.2 21.2% .2%

• V. Profit before Income Tax

1,151.0 362.2

• 68.5%
• VI. Tax Expenses

296.9 71.8

• 75.8%

VII VII. . Net Pr Profit

854.0 4.0 290.4 0.4

• 66.0%

6.0%

• 1. Profit Attributable to

Owners of the Company

363.5 215.1

• 40.8%
• 2. Profit Attributable to

Non-Controlling Interests

490.5 75.3

• 84.6%

1H 1H18 18 1H 1H19 19 YOY

I.

• I. Re

Revenue

14,036 ,036.7 .7 16,248 ,248.7 .7 15.8% .8%

• II. COGS

9,985.5 11,774.0 17.9%

• III. Gross Profit

4,051.2 4,474.7 10.5%

IV.

• IV. Ope

pera rating g Pr Profit

642.8 2.8 708.5 8.5 10.2% .2%

• V. Profit before Income Tax

1,398.5 533.3

• 61.9%
• VI. Tax Expenses

353.9 128.7

• 63.6%

VII VII. . Net Pr Profit

1,04 044.6 4.6 404.6 4.6

• 61.3%

1.3%

• 1. Profit Attributable to

Owners of the Company

450.2 263.5

• 41.5%
• 2. Profit Attributable to

Non-Controlling Interests

594.4 141.2

• 76.2%

[Unit: W Bn]

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Fin Financial st statement

Se Separate St Statements

20 2018 2Q 2Q19 YoY

• Y
• I. Current Assets

54 27

• 27
• 1. Cash and Cash Equivalents

31 1

• 30
• 3. Other Current Assets

23 26 3

• II. Non-Current Assets

2,758 2,767 8 To Total As Asset set 2,812 2,794

• 18

18

• I. Current Liabilitities

50 33

• 17
• II. Non-Current Liabilitities

109 113 5 To Total Liabilities 158 158 146 146

• 12

12

• I. Capital Stock

158 179 21

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

993 993

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

1,719 1,692

• 27

To Total Equ Equity 2,654 2,648

• 6

Debt bt Ra Ratio 6.0% 5.5%

• 0.5%pt.

[Unit: W Bn] [Unit: W Bn] 2Q1 Q18 2Q19 Q19 YOY

I.

• I. Ope

pera rating Re Revenue

24.2 .2 25.3 .3 4.5% 5%

• Royalty Income

23.2 23.6 1.7%

• Dividend Income
• Others

1.0 1.6 60.0%

• II. Operating Expenses

12.8 18.5 44.5%

II III. . Ope pera rating Pr Profit

11.4 .4 6.8

• 40.4%

0.4%

• IV. Profit before Income Tax

Benefit(Expense)

27.3

• 9.7

Turn Neg.

• V. Income Tax

Benefit(Expense)

8.1

• 1.4

Turn Neg.

VI.

• VI. Net Pr

Profit

19.2 .2

• 8.3

.3 Tu Turn rn Ne Neg. g. 1H 1H18 18 1H 1H19 19 YOY

I.

• I. Ope

pera rating Re Revenue

84.7 .7 93.8 .8 10.7% .7%

• Royalty Income

44.3 45.3 2.3%

• Dividend Income

38.4 45.3

• Others

2.0 3.2 60.0%

• II. Operating Expenses

25.7 40.9 59.1%

II III. . Ope pera rating Pr Profit

59.0 .0 52.9 .9

• 10.3%

0.3%

• IV. Profit before Income Tax

Benefit(Expense)

22.5 33.9 50.7%

• V. Income Tax

Benefit(Expense)

• 1.0
• 1.1

10.0%

VI.

• VI. Net Pr

Profit

23.5 .5 35.0 .0 48.9% .9% [Unit: W Bn]

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Thank you