IR Material

The material is written for the convenience of investors before the completion of auditing for FY2017
Therefore, please note that some of the information may change during the process of Financial Audit
Contents

Part 1. CJOS FY 17 Earnings Summary ---------------- 3

Part 2. CJOS + CJ E&M M&A and

---------------- 11
Business Strategy Outlook

2
3
 FY17 Domestic Earnings
 Top-line growth by enhancement of multi-product planning that satisfies customer’s needs
and increment of GMS of Intangible Products
- Expand PB/LB in fashion, beauty and living category and increase product portfolio in rental car, rental electronics,
and travel packages.
 Rapid growth of T-Commerce based on competency in Media and Product Planning/Sourcing
- Consumer utility through “Shoppertainment” element and differentiated product pool from live channel, led increase
in GMS of T-commerce by 119% YOY
 Growth of E-commerce centered by mobile
- Effect of DADA studio, improvement of CJ Mall APP UI/UX for mobile, and a launch of new MCN channel called “Shock Live”

[ Table 1. FY16, FY17 Earnings ] [ Table 2. Details on Earnings ] (B/KRW)

(B/KRW) YoY QoQ

+18.4% 3,744 (%) 4Q 4Q (%)

FY 17 FY 16 Fy17 FY16
3,162 GMS 3,744 3,162 18.4 1,032 891 15.8

Live TV 2,596 2,192 18.4 711 601 18.3

T-com TV 236 108 119 72 43 67

Non-TV 912 862 5.8 249 247 0.7

+15.8%
1,032 - TV 2,107 1,692 24.5 581 468 24.3
891 (Phoneorder)

- E-Commerce 1,508 1,341 12.5 417 390 7.0

(Mobile) 952 856 11.2 275 250 10.2

4Q.FY16 4Q.FY17 FY16 FY17 - Catalogue 51 53 △4.9 14 15 △9.4

- others 78 73 7.1 20 19 6.7

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FY17 Domestic Earnings
 Comparable to growth of GMS, growth of gross profit is low due to the expansion of sales based
on intangible product with fixed margin.
 Enhancement of profitability through expansion of VIP Multi-Customers and product pool of
Private Brand.
- Brisk sales of Vera Wang and A+G, launch of SEP from beauty category, positive reviews of Odense PPL in
E&M entertainment show.
 Improvement of equity method gain through reformation of overseas affiliates

[ Table 4. Details on earnings ] (B/KRW) [ Table 5. O.P to Sales Ratio ]

YoY QoQ 15.00%

(%) 4Q 4Q (%)
FY 17 FY 16 Fy17 FY16 13.90%
14.00%
Sales 1,137 1,096 3.7 312 303 3.0

Gross Profit 1,000 971 2.9 266 267 - 13.00% 12.47%

13.22%
SG&A Cost 842 826 1.9 224 217 3.3 12.00%
O.P Profit 158 145 8.7 42 49 △14.8
11.00%
(%) 13.9 13.2 0.7 13.4 16.2 △2.8
10.19%
11.12%
Non-O.p profit 1 △100 Turn 1 △79 Turn 10.00%

Pre-Tax profit 159 45 254.2 43 △30 Turn

9.00%
Net Profit 128 16 696.3 43 △41 Turn

(%) 11.2 1.4 9.8 13.8 △13.5 Turn 8.00%

FY13 FY14 FY15 FY16 FY17

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FY17 Overseas Earnings
 Achieved profit turnaround through restructuring of overseas affiliates under equity methods
- Completion of liquidation in Japan, Turkey and India.

[ Table 6. Overseas Subsidiaries’ Earnings ] (B/KRW)

Share Ratio Net Profit Equity Method Gain
Subsidiary (%) FY 17 FY 16 FY 17 FY 16
Subsidiaries under Equity Method 91 72 12 9
Dong Fang CJ 15.84 102 101 16 16
Tian Tian CJ 44.0 1 1 1 -
China
Nam Fang CJ 23.0 - △20 - △1
BCJ 49.0 - - - -
Vietnam SCJ TV 50.0 1 2 1 1
Thailand GMM CJ 49.0 - △1 - △1
Philippines ACJ 50.0 - 1 - -
Mexico Televisa CJ Grand 50.0 △9 △7 △4 △4
Malaysia MPCJ 49.0 △4 △5 △2 △2
Consolidated Subsidiaries Company △8 △11 △7 △9
China, Thailand, CJ IMC(SUM)/CMI 100/99 △8 △11 △7 △9
Mexico, etc.
Exit completed Affiliates △14 △36 △7 △24
India SHOP CJ - △14 △26 △7 △14
Turkey CJ Mediasa - - △8 - △8
Japan CJ Prime Shopping - - △2 - △2
[ Total ] 69 25 △2 △24

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Appendix. FY17 Portfolio

Channels Products
2.1% Fashion
1.4%

14.0% Living/Food
14.9% 28.0%
TV Electronics
7.0%
Mobile
PC 9.0% Cosmetics
56.2%
25.4%
CTLG
Other General Goods
14.0% 16.0%
12.0% Interior

Others

Gender Ages

9.9% 9.0%
18.4% Under 30s
23.8% 30~49
Female
50~59
Male
57.3%
Over 60s
81.6%

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Appendix. Company overview

Snapshot (as of Dec 2017)

Shareholders’ Stake
(2017)

6.9%
3.0%
Outstanding Shares 6,215,518 shrs CJ (001040.KS)

Market Cap. 1,436 mn USD 40.0% Foreign Investor

20.9%
Shareholders' Equity 1,484 mn USD Domestic Institution

P/B 1.00 x Treasury Stocks

29.2%
Foreign Investment Limit 49.0 % Others

*KRW/USD = 1,000

Price Information Cashable Asset

(‘000 KRW)

300 Number of Shares Price Value

(KRW) (B KRW)

Treasury Stock 186,320 197,900 43

250
Samsung Life
1,000,000 113,000 125
Insurance
200
Skylife 120,000 14,400 1.6

150 Hyundai HCN 1,246,283 3,585 5

Others - - 0.1
100
01.'15 07.'15 01.'16 07.'16 01.'17 07.'17 Total (B KRW) 174

 Reference Date : 4Q17 (Fair Value or Net Asset Value) 8

Appendix. Financial Statement Summary (Separate)

(Unit: B/KRW) FY 2016 FY 2017 (Unit: B/KRW) FY 2016 FY 2017

Total Assets 1,111.51 1,149.21 Sales Revenue 1,095.91 1,136.46

Current Assets 340 316 COGS 124.56 137

Non-Current Assets 771.19 834 Gross Profit 971.35 999.62

Total Liabilities 428.38 346.47 SG&A 826.42 842.12

Current Liabilities 420.89 340 Operating Profit 144.9 157.50

Non-Current Liabilities 7.5 6 Non-Operating P/L 100.1 1.18

Shareholders’ Equity 683.14 802.73 Pre-tax profit 45 158.7

Equity Capital 119.0 127.57 Tax Expenses 29 30.5

Retained Earnings 564 675 Net Profit 16 128.2

80.86% 92.76% 13.22% 13.86%

62.71% 43.16% 1.47% 11.28%

• FY17 figures in income statement are cumulative year-to-date

9
Appendix. Financial Statement Summary (Consolidated)

(Unit: B/KRW) FY 2016 FY 2017 (Unit: B/KRW) FY 2016 FY 2017

Total Assets 2,753.6 2,801.8 Sales Revenue 2,208.6 2,260.0

Current Assets 689.0 661.8 COGS 999.6 988.0

Non-Current Assets 2,064.6 2,140 Gross Profit 1,209.0 1,272.0

Total Liabilities 1,390.7 1,317.7 SG&A 1,030.2 1,047.5

Current Liabilities 1,017.3 731.5 Operating Profit 178.9 224.5

Non-Current Liabilities 373.4 586.2 Non-Operating P/L (116.7) (40.2)

Shareholders’ Equity 1,362.9 1,484.1 Pre-tax profit 62.1 184.3

Equity Capital 132.1 560 Tax Expenses 29.6 40.9

Retained Earnings 811.9 924.1 Net Profit 32.6 143.4

67.7% 90.5% 8.1% 9.9%

102.0% 88.8% 1.5% 6.3%

• Above figures are on a consolidated basis

• FY17 figures in income statement are cumulative year-to-date
• One of the main subsidiaries include CJ Hello

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+

11
 Commerce
expansion

12
 US
• Media Big 6 reshuffling
: M&As by global firms to strengthen core competency

• Content IP & digital platform expansion

: Greater quality content & B2C distribution platform

Europe China
• Alliance to enhance global competency • Aggressive media-commerce M&As
: Launching Ad. Exchange across four countries : Commerce firms stretching into media & content production

• Agile transition toward digital landscape • Copyright infringement

: Uniting infra across EU, aiming for digital transformation : Youn’s Kitchen, Show Me The Money, I See Your Voice …

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Marketplace Expansion

K commerce K content

TR KR
US

MX THVN
MY
JP

New Co.

Unified platform Data Solution

Mobile Digital
Offline MD, Animation, New
V commerce Toy, Character Businesses
T Commerce Music, Musical

Home shopping Media, Film Content

Brand business
theme park

Product Content
planning production
Current
competenc
Commerce Media solution y

Business Model Expansion

14
 Music
Drama, Film

Commerce

Musical, Live

Media channel

Any Content, Any Commerce

Content
Theme park

Digital
platform
Animation, Toy

Data solution VR, Voice UX

15
+

16
• Evolving into ‘First Window’ upon greater B2C relationship

• Extending K content & commerce prestige overseas

• Becoming a global media-commerce company

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 Media-Commerce Big Data Data Analysis  Greater Insights Content-Commerce Strategy

Data Management Platform User Profiling Trend

Analysis

DMP +

- DMP upon Audience, Content, Brand
- Behavioral data upon TV, mobile, SNS
…
- Data analysis, ad solution, product matrix
- Curation, best content-product mix
- Insights & behavioral analysis index tools
- Profiling-based cross-media & V commerce

“ Greater B2C relationship ” Digital biz integration Intelligence-based

“ Unified global digital platform ” Synergy maximization + new digital service

AI
First Window

+ Voice UX

VR  AR
…

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 Traditional
Business

“ Concentration on new business &

Seller … Advertiser synergy ”
Commissio Ad slot,
n Media solution
MD
Ad
sourcing,
spending
Commerce

Mobile, Digital,
Overseas Overseas - No.1 M/S in terms of TV GMV - No.1 MPP in terms of TV ad sales

- 10 mn customer base - Digital channel UV over 10 mn

- CJ mall, DADA Studio, Shock Live, -etc.

TVING, Mnet, DIA TV, etc.
Channel TV
- Vietnam, Malaysia, Mexico, etc. - Vietnam, Thailand, Turkey, etc.
program

TV transmission MSO Subscription

cost fee
(SO fee)
Unified business model

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 Sales Revenue Current
business
3 yr CAGR of
W4.4tn
Sales Revenue
Operating Profit 15.1%
W350bn

• Overseas sales portion : 17% • Overseas sales portion : 32%

• CAPEX estimate : W510bn
• Bolster ad sales & digital business
• Fortify MD & mobile commerce
• New business sales : W800bn target
• Digital media-commerce
through unified platform
• On/Offline integrated IP business

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 YoY increase in Dividend payout ratio
dividend payout New Co.
15% or more

YoY increase in Balance between

dividend payout growth & shareholder return
• FY 2016 Dividend per share : CJ O Shopping W2,500
CJ E&M W200

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 CJ O Shopping CJ E&M New Co.
(Unit: Wbn)
# Shares Stake (%) # Shares Stake (%) # Shares Stake (%)

CJ Corp. 2,486,214 40.00 15,245,201 39.36 8,743,450 39.54

Related Persons 20,291 0.33 1,356,613 3.50 577,099 2.61

Largest shareholder
2,506,505 40.33 16,601,814 42.86 9,320,548 42.15
and related persons
Domestic Institutional
1,300,170 20.92 4,424,889 11.42 3,116,320 14.09
Investors

Foreign Investors 1,818,039 29.25 11,193,418 28.90 6,412,262 29.00

Treasury Stock 186,320 3.00 157,063 0.41 250,785 1.13

Others 404,484 6.51 6,354,905 16.41 3,012,789 13.62

Total 6,215,518 100.00 38,732,089 100.00 22,112,704 100.00

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(Unit: Wbn) FY 2016 FY 2017 (Unit: Wbn) FY 2016 FY 2017

Total Assets 2,753.6 2,801.8 Sales Revenue 2,208.6 2,260.0

Current Assets 689.0 661.8 COGS 999.6 988.0

Non-Current Assets 2,064.6 2,140 Gross Profit 1,209.0 1,272.0

Total Liabilities 1,390.7 1,317.7 SG&A 1,030.2 1,047.5

Current Liabilities 1,017.3 731.5 Operating Profit 178.9 224.5

Non-Current Liabilities 373.4 586.2 Non-Operating P/L (116.7) (40.2)

Shareholders’ Equity 1,362.9 1,484.1 Pre-tax profit 62.1 184.3

Equity Capital 132.1 560 Tax Expenses 29.6 40.9

Retained Earnings 811.9 924.1 Net Profit 32.6 143.4

67.7% 90.5% 8.1% 9.9%

102.0% 88.8% 1.5% 6.3%

• Above figures are on a consolidated basis

• FY17 figures in income statement are cumulative year-to-date
• One of the main subsidiaries include CJ Hello

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(Unit: Wbn) FY 2016 FY 2017 (Unit: Wbn) FY 2016 FY 2017

Total Assets 2,793.0 3,759.0 Sales Revenue 1,538.4 1,750.1

Current Assets 995.6 1,279.7 COGS 1,189.5 1,310.0

Non-Current Assets 1,797.3 2,479.2 Gross Profit 348.9 440.1

Total Liabilities 1,177.4 1,510.2 SG&A 320.9 376.9

Current Liabilities 937.2 823.7 Operating Profit 28.0 63.2

Non-Current Liabilities 240.2 686.5 Non-Operating P/L 39.6 529.1

Shareholders’ Equity 1,615.5 2,248.7 Pre-tax profit 67.5 592.3

Equity Capital 1,163.4 1,163.4 Tax Expenses 6.7 170.4

Retained Earnings 419.5 835.5 Net Profit 60.9 421.9

106.2% 155.4% 1.8% 3.6%

72.9% 67.1% 4.0% 24.1%

• Above figures are on a consolidated basis

• One of the main subsidiaries include Studio Dragon

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