FY.

2019

ORION Holdings : www.oriongroup.co.kr ORION : www.orionworld.com

Ticker 001800KS Ticker 271560KS

Current Market Situation of Orion

Financial Highlights

Orion Headquarter Korea

Global Orion (China, Vietnam, Russia)

1
 Current Market
Expansion around the Globe for the Global F&B Player Situation of Orion

ASIA
EUROPE
U.S.A
N.AMERICA

Iran Myanmar Japan

India
Dubai
AFRICA
Philippines
Present Market
Indonesia Target Market S.AMERICA

OCEANIA Export
Local Co.
Local Office.

KOREA CHINA VIETNAM RUSSIA INDONESIA

KOREA CHINA
Orion Corp. Pan Orion Corp. OFV OIE Delfi-Orion
(Parent Company) (Holding Company) (Orion Food Vina) (Orion International Euro)

Orion & NH OFC (Orion Food Co. Beijing)

INDIA
(Joint Venture Company) OFS (Orion Food Shanghai)
Orion
Orion Japan Branch OFG (Orion Food Guangzhou)
Nutritionals
OFSY(Orion Food Shenyang) 2
Current Market Situation of Orion

Financial Highlights

Orion Headquarter Korea

Global Orion (China, Vietnam, Russia)

3
 Financial
Concentration on Orion’s strong points Highlights

Group Revenue Trend Group EBIT Trend

Entertainment Growth (yoy) EBIT margin

(Unit : Wbn)
Confectionery
(Based on K-IFRS)
 Amended Revenue Recognition from ‘17

16%
13% 14% 14%
8% 8% 5% 11%
0%
-11% 9%

2,386.3
2,382.4
2,199.8 125.9 326.2 329.5
2,102.0 299.3
142.0 (5%) 1.9
72.0 (6%) 78.7 (1%)
(3%) (4%) 14.1 15.3 287.4
5% 1,995.4 (5%) (5%)
5.2
1,849.5 7%
68.5 248.9 (2%)
102.7 (3%)
1% 327.6
(6%) 2% 1.6
(1%) 314.0 311.5 (99%)
2,238.4 2,260.8 (105%) 282.2
(94%) (95%)
2,113.1 95%
(95%)
2,023.3 102% 169.7 (98%)
(96%)
95% 1,926.9 (96%) 252.7 10.3
(97%) (102%) (6%)
1,746.8
(94%) 159.4
(94%)

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4
 Financial
Key financial ratio (ORION) Highlights

EBITDA & CAPEX Net Debt to Equity

EBITDA
CAPEX
(Unit : Wbn)

487.5 Gross Debt 746.9

450.3
399.9 599.7
Net Debt 349.3
435.1
240.6 254.0 286.8
447.4
152.9 239.3 50.7
135.0 Cash 397.6
129.3
152.4 195.8 236.1

16 17 18 19 16 17 18 19
33.2%
Net debt
2016 2017 2018 2019 to Equity 20.6%
EBITDA 115.5 113.6 131.2 147.8 (%) 16.1%
Korea
CAPEX 70.0 64.2 61.9 43.4 3.0%
72% 69%
EBITDA 277.9 72.0 210.2 224.3
China Debt ratio 59%
CAPEX 154.0 58.4 33.2 45.4 47%
EBITDA 35.7 43.2 51.1 60.8
Vietnam
CAPEX 5.3 16.9 36.9 22.7 30.0
Interest 16.8
EBITDA 9.9 17.0 11.7 17.0
Russia coverage 13.0
CAPEX 10.7 13.5 3.0 8.7
multiple 8.0
5
Current Market Situation of Orion

Financial Highlights

Orion Headquarter Korea

Global Orion (China, Vietnam, Russia)

6
 Orion Headquarter Korea
Streamlined Value Chains

Sales Trend Profit Trend

Local EBITDA EBITDA margin

Growth EBIT EBIT margin
(Unit : Wbn)
(Based on K-IFRS)
 Amended Revenue Recognition from ‘17

5.2% 22.0%
2.9% 20.1%
20.0%
18.8% 18.3%
-3.6%

-5.3%
-5.6% 15.3%
147.8
685.3 131.2
672.2 129.7
653.4
649.1 115.5 16.0%
621.2 113.6
612.8 14.7%
105.0 14.1%
13.1% 107.8
12.8%
10.6%
95.1
92.2
78.7 81.6
72.6

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7
 Orion Headquarter Korea
Relentless Innovation (6 steps)

1st Step 2nd Step 3rd Step 4th Step 5th Step

Sunflower Bean Oil No CFP Balance 0% Synthetic

Olive Oil
Seed Oil Toluene (Carbohydrate, Fat, Protein) Additive
(Swedish AAK with R&D)

Saturated Fat Acid Green Package DR.YOU Market O

Trans Fat 0%
Reducing Project Project Project Project

HEALTH NUTRITION WELLNESS

89.5

1st 2nd 3rd

Smart Package
6th Step Reduce
+ Increase + Green
Project Package Package
Size Volume II
8
Current Market Situation of Orion

Financial Highlights

Orion Headquarter Korea

Global Orion (China, Vietnam, Russia)

9
 Global Orion
Global Orion's Unraveling Jewel (Overseas) ( China, Vietnam, Russia)

China Sales Trend

China
Pan Orion

1,346.0
1,332.9
(China Holding Co.)

1161.4

974.4
OIE

933.0
OFC (Orion Food Co. Beijing)
Tver Novo

794.8
OFS (Orion Food Co. Shanghai)
OFG (Orion Food Co. Guangzhou)
OFSY (Orion Food Co. Shenyang)
OBC (Orion Food Co. Bei Tun)
‘14 ‘15 ’16 ’17 ’18 ’19
Pan Orion
Vietnam Sales Trend Hanoi
OFV
Vietnam HCMC

230.2
216.3
OFV (Orion Food Vietnam)
192.7
170.8

Hanoi, Ho chi minh

139.8
132.0

‘14 ‘15 ’16 ’17 ’18 ’19

1,648.0
Russia Sales Trend

1,589.3
Russia

1,427.8
OIE (Orion
82.7

International Euro,

1,339.3
77.3
77.3

Moscow)

1,264.2
64.9
61.2
58.1

1,130.5
Overseas
‘14 ‘15 ’16 ’17 ’18 ’19 Total (Wbn)
(Based on K-IFRS) ‘14 ‘15 ‘16 ’17 ’18 19
 Amended Revenue Recognition from ‘17 10
9
 Global Orion
1. China – Changing crisis into New Opportunity ( China, Vietnam, Russia)

Sales Trend Profit Trend

Local EBITDA EBIT margin

(Unit : Wbn) EBIT EBITA margin

(Based on K-IFRS) 23.0%
 Amended Revenue Recognition from ‘17 22.5%
21.4% 20.6%
20.4%

1,346.0
1,332.9
9.1%
1,161.4 285.6
277.9
974.4
237.3 224.3
933.0 15.2% 210.2
14.8%
14.0% 16.3%
794.8 15.2%
202.1
198.6
162.5
158.6
72.0 141.6

2.4%

19.2
19.2
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 Global Orion
1. China – Expanding Unique & Strong Brand Portfolio ( China, Vietnam, Russia)

Sales Break down Product Mix

PIE GUM, Candy Pie

SNACK BISCUIT

Unbreakable market
leadership with Choco Pie
100%

37% 41% 35%

39%
80%
41% 42% Gum & Candy
Another opportunity
17% segment
60% 22%
21% 20% 16%
16%
8% BiscuitBISCUIT based on unique products
7%
40% 13% 10% 10%
7%
10% 8% Based on unique products

20%
31%
40% 36% 35% Snack
30%
28%
Competitive edge in chip
market
0%
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12
 Global Orion
2. Vietnam - Hub Market for South-East Asia ( China, Vietnam, Russia)

Sales Trend Profit Trend

EBITDA EBITDA margin

Local
EBIT EBIT margin
(Unit : Wbn)
(Based on K-IFRS)
 Amended Revenue Recognition from ‘17

26.4%
23.6%
22.4%
20.9%

14.8% 15.7%
60.8
51.1
230.2 43.2
20.8%
216.3 35.7 19.0%
192.7 18.7%
170.8 15.5% 47.8
139.8 21.9 41.0
19.5 36.0
132.0 26.5

9.2% 9.5%

12.1 13.3

14 15 16 17 18 19 14 15 16 17 18 19 13
 Global Orion
2. Vietnam – Increasing Brand Power ( China, Vietnam, Russia)

Sales Break down Product Mix

PIE GUM, CANDY

SNACK BISCUIT

Pie
100%

22% 23% 26%

30%
26% Gum
80% 33%

17%
19% 16%
60% 20% 17%

2%
16% Biscuit
4% 3% 1%
40% 3%

59%
20% 54% 55%
53% 53%
48% Snack

0%
14 15 16 17 18 19
14
 Global Orion
3. Russia – Special Position in Western Market ( China, Vietnam, Russia)

Sales & Profit Trend Profit Trend

Local EBITDA EBITDA margin

(Unit : Wbn) EBIT EBIT margin
(Based on K-IFRS)
 Amended Revenue Recognition from ‘17

22.0% 22.0%
18.0%
16.2%

10.3% 10.2%
17.0 17.0

18.5% 11.7
82.7 16.7%
77.3 77.3 9.9
8.5
64.9 14.3 12.3%
61.2 12.6% 12.9
58.1 (83%)
6.7% 5.9
Pie (83%) (80%)
(76%) (77%)
(70%) 6.0% 8.0
7.7
5.5
3.5

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15
21