Cheil Worldwide (030000 KS) Parent business robust; enhancing capabilities in India and China 2Q18 review: Profits beat consensus Results Comment For 2Q18, Cheil Worldwide’s profits came in above the consensus, while gross profit July 30, 2018 (top line) was in line. Positives: Parent gross profit was stronger than expected, growing 11% YoY. While key client Electronics (SEC; 005930 KS/Buy/TP: W70000/CP: W46550) was not an official sponsor for World Cup (which began in June), we believe the company benefited (Maintain) Buy from a large number of projects from domestic non-affiliate advertisers related to the global sports season. Target Price (12M, W) 25,000 Looking overseas, North America stood out, with gross profit improving 37% YoY on the back of a recovery in local subsidiaries (McKinney and TBG). Gross profit in Latin Share Price (07/27/18, W) 19,850 America also grew 16% YoY, thanks to Brazil. 2Q18 OP margin rose to 6.4%, the highest level for a second quarter since 2014. Expected Return 26% Negatives: Growth in China and India was weaker than expected. In China, gross profit rose 3% YoY. After being hurt by changes in the marketing strategy of a key OP (18F, Wbn) 189 affiliate client and reduced local marketing by non-affiliate Korean firms in the wake of Consensus OP (18F, Wbn) 178 the THAAD issue, we believe the China business is now gradually recovering.

EPS Growth (18F, %) 14.7 In India, gross profit grew 4% YoY, much slower than the 30% rate seen in 2017. We Market EPS Growth (18F, %) 10.6 believe SEC temporarily scaled back marketing in order to retool its strategy in P/E (18F, x) 15.7 response to increasing local competition from Chinese brands, such as Xiaomi. We Market P/E (18F, x) 9.0 expect SEC’s marketing strategy to shift away from media ads (TV, etc.) to digital KOSPI 2,294.99 marketing and non-media campaigns.

Market Cap (Wbn) 2,284 First M&A in India, and JV with Baozun in China Shares Outstanding (mn) 115 Overseas investments: Following its takeover of Eastern European agency, Centrade, Free Float (%) 59.6 in May, Cheil Worldwide acquired the Indian firm Experience Commerce (EC) in June— Foreign Ownership (%) 33.4 its first M&A in the country. Located in Mumbai, EC is expected to help strengthen Cheil Beta (12M) 0.63 Worldwide’s local digital marketing capabilities. In China, the company’s subsidiary, 52-Week Low 17,950 PengTai, established a joint venture with Chinese online shopping-mall solutions 52-Week High 21,800 provider Baozun (BZUN, US$61.95) in 1H18. The joint venture, which will begin operations in August, should support the expansion of the e-commerce business in (%) 1M 6M 12M China. Absolute 1.3 -2.5 5.9 Relative 3.4 9.4 12.7 2H18: While 3Q is traditionally a weak season, the Galaxy Note 9 Unpacked event scheduled for August 9th will likely contribute to earnings. In the peak season of 4Q18, 120 Cheil Worldwide KOSPI we expect earnings to improve across all regions and the global campaign for the 110 Galaxy Note 9 to bolster earnings. Also, with SEC having doubled the capacity of its

100 India Noida plant in 1H18, local marketing demand looks likely to grow.

90 Maintain Buy and TP of W25,000 80 We maintain our Buy call and target price of W25,000 on Cheil Worldwide. Despite changes 7.17 11.17 3.18 7.18 in the marketing strategy of its affiliate client, the company is continuing to deliver stable profits. We believe the company is also enhancing its medium/long-term growth prospects Mirae Asset Daewoo Co., Ltd. by strengthening its digital capabilities in India and e-commerce capabilities in China.

[ Internet/Game/Advertising] FY (Dec.) 12/15 12/16 12/17 12/18F 12/19F 12/20F Revenue (Wbn) 2,807 3,233 3,375 3,722 3,989 4,195 Jee-hyun Moon +822-3774-1640 OP (Wbn) 127 150 157 189 214 226 [email protected] OP margin (%) 4.5 4.6 4.7 5.1 5.4 5.4

NP (Wbn) 80 88 127 146 162 171 EPS (W) 691 767 1,105 1,268 1,408 1,483 ROE (%) 9.6 11.4 15.8 16.8 17.5 17.0

P/E (x) 29.9 20.5 19.2 15.7 14.1 13.4 P/B (x) 2.2 1.7 2.2 1.9 1.8 1.7 Dividend yield (%) 1.4 1.9 3.6 4.4 4.8 5.1 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

July 30, 2018 Cheil Worldwide

Earnings review and forecasts

Table 1. 2Q18 review (Wbn, %) 2Q18P Growth 2Q17 1Q18 Preliminary Mirae Asset Daewoo Consensus YoY QoQ Revenue 825 812 910 891 906 10.3 12.1 Gross profit 256 235 273 276 277 6.6 15.9 Operating profit 52 26 58 54 56 11.3 123.9 OP margin (%) 6.3 3.2 6.4 6.1 6.2 Net profit 39 19 46 37 42 19.1 139.3 Notes: All figures are based on consolidated K-IFRS; net profit is attributable to controlling and non-controlling interests; for advertising firms, gross profit is a better representation of top-line than revenue Source: Company data, FnGuide, Mirae Asset Daewoo Research estimates

Table 2. Quarterly and annual earnings (Wbn, %) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18P 3Q18F 4Q18F 2017 2018F 2019F Revenue 675 825 876 999 812 910 929 1,071 3,375 3,722 3,989 Gross profit 213 256 248 295 235 273 260 337 1,013 1,105 1,185 Parent 54 72 71 83 58 80 74 86 281 298 299 Overseas 159 184 177 212 177 193 186 252 732 808 885 China 44 53 47 73 47 55 52 80 218 233 256 Europe 57 64 61 67 63 67 64 69 249 263 277 Americas 8 10 11 12 12 13 14 15 41 54 63 India 13 15 16 16 16 16 17 18 60 67 80 Operating profit 23 52 35 46 26 58 37 68 157 189 214 OP margin 3.5 6.3 4.0 4.6 3.2 6.4 4.0 6.4 4.6 5.1 5.4 Net profit 16 39 42 32 19 46 30 52 128 147 164 Net margin 2.4 4.7 4.8 3.2 2.4 5.1 3.2 4.8 3.8 3.9 4.1 YoY Revenue 2.3 0.6 12.2 2.7 20.4 10.3 6.0 7.2 4.4 10.3 7.2 Gross profit -5.6 0.0 4.8 5.9 10.3 6.6 5.0 14.2 1.5 9.2 7.2 Parent -1.5 -6.9 6.2 -2.3 7.4 10.9 4.0 2.5 -1.4 6.0 0.5 Overseas -7.0 3.0 4.3 9.5 11.3 4.8 5.4 18.7 2.7 10.4 9.6 China -21.4 -4.0 -17.0 6.1 6.5 2.5 10.0 8.6 -8.3 7.0 10.0 Europe 9.0 2.8 15.2 12.3 11.8 5.0 5.0 2.9 9.6 6.0 5.0 Americas -51.3 -31.5 -7.1 30.3 46.1 36.6 20.0 23.6 -20.9 30.0 18.0 India 18.2 39.1 39.5 30.0 21.7 3.6 10.0 14.6 31.9 12.0 20.0 Operating profit 3.9 19.4 22.0 -16.0 11.6 11.3 4.9 49.4 4.7 21.1 12.8 Net profit 14.0 35.1 63.8 42.8 17.7 19.1 -29.2 64.3 41.7 14.3 11.7 Notes: All figures are based on consolidated K-IFRS; net profit is attributable to controlling and non-controlling interests; for advertising firms, gross profit is a better representation of top-line than revenue; one-off tax refund was recorded in 3Q17 Source: Company data, Mirae Asset Daewoo Research estimates

Table 3. Earnings forecast revisions (Wbn, W, %) Previous Revised % chg. Notes 18F 19F 18F 19F 18F 19F Revenue 3,643 3,782 3,722 3,989 2.2 5.5 Gross profit 1,093 1,134 1,105 1,185 1.1 4.5 Parent and North America estimates revised upward Operating profit 177 189 189 214 7.0 13.0 Net profit 132 140 147 164 11.2 17.1 Non-operating profit estimates revised upward EPS (W) 1,133 1,206 1,268 1,408 11.9 16.7

OP margin 4.9 5.0 5.1 5.4

Net margin 3.6 3.7 3.9 4.1

Notes: All figures are based on consolidated K-IFRS; net profit is attributable to controlling and non-controlling interests; EPS is based on controlling interests Source: Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 2 July 30, 2018 Cheil Worldwide

Overseas businesses

Figure 1. YoY growth in Cheil Worldwide’s overseas gross profit: 41% in North America, 20% in Latin America, 12% in India, and 8% in Europe

(Wbn)

Source: Company data, Mirae Asset Daewoo Research

Figure 2. Cheil Worldwide’s June acquisition of India Mumbai-based digital ad agency EC strengthened its digital advertising capabilities

Source: Experience Commerce website, Mirae Asset Daewoo Research

Figure 3. Cheil Worldwide’s Chinese subsidiary PengTai to launch the operation of JV with Chinese online shopping-mall solutions provider Baozun in August

Source: Cheil Worldwide, Cheil Pengtai, Baozun, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 3 July 30, 2018 Cheil Worldwide

Valuation

Table 4. Target price calculation (Wbn, x, W) Valuation Notes

Operating value (1) 2,407

12-month forward NP Multiple

12-month forward average P/E of Korea/Japan ad Korea 62 16.0 985 agencies 12-month forward P/E of Chinese ad agency China 23 16.5 381 BlueFocus 12-month average P/E of ad agencies in Western Americas/Europe 12 11.5 142 markets Other (India, etc.) 57 15.8 900 12-month average P/E of Asia ad agencies Investment value (2) 22

Listed 2 As of end-1Q18 Unlisted 15 As of end-1Q18 Affiliates 5 As of end-1Q18 Total asset value 2,428 (1+2=3) Net debt (4) -461 As of end-1Q18 Net asset value (3-4) 2,889

No. of shares (‘000) 115,041

Target price (W) 25,000 Rounded up Note: Overseas net profit figures are estimates; asset and net debt are based on end-1Q18 figures, as audited report as of end- 2Q18 has yet to be submitted Source: Company data, Bloomberg, Mirae Asset Daewoo Research estimates

Figure 4. Share performances of Cheil Worldwide and SEC (the Figure 5. 12MF P/Es of major global ad agencies have recently company’s largest shareholder and advertiser) rebounded

(-1Y=100) (x) 120 Cheil Worldwide 40 Cheil Worldwide Innocean Worldwide Dentsu (Japan) 110 BlueFocus (China) 30 Publicis (France)

100

20 90

80 10 7/17 10/17 1/18 4/18 7/18 7/17 10/17 1/18 4/18 7/18

Source: Thomson Reuters, Mirae Asset Daewoo Research Source: Thomson Reuters, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 4 July 30, 2018 Cheil Worldwide

Cheil Worldwide (030000 KS/Buy/TP: W25,000)

Comprehensive Income Statement (Summarized) Statement of Financial Condition (Summarized) (Wbn) 12/17 12/18F 12/19F 12/20F (Wbn) 12/17 12/18F 12/19F 12/20F Revenue 3,375 3,722 3,989 4,195 Current Assets 1,889 2,041 2,236 2,405 Cost of Sales 2,362 2,618 2,804 2,949 Cash and Cash Equivalents 328 367 442 519 Gross Profit 1,013 1,104 1,185 1,246 AR & Other Receivables 1,271 1,363 1,461 1,536 SG&A Expenses 856 916 971 1,020 Inventories 0 0 0 0 Operating Profit (Adj) 157 189 214 226 Other Current Assets 290 311 333 350 Operating Profit 157 189 214 226 Non-Current Assets 349 341 327 314 Non-Operating Profit 8 18 17 18 Investments in Associates 5 5 6 6 Net Financial Income 4 5 6 7 Property, Plant and Equipment 95 91 85 81 Net Gain from Inv in Associates 2 0 0 0 Intangible Assets 161 153 140 129 Pretax Profit 165 207 231 244 Total Assets 2,238 2,382 2,562 2,719 Income Tax 37 60 67 71 Current Liabilities 1,281 1,373 1,470 1,545 Profit from Continuing Operations 128 147 164 173 AP & Other Payables 744 798 855 899 Profit from Discontinued Operations 0 0 0 0 Short-Term Financial Liabilities 13 13 13 13 Net Profit 128 147 164 173 Other Current Liabilities 524 562 602 633 Controlling Interests 127 146 162 171 Non-Current Liabilities 101 108 116 122 Non-Controlling Interests 1 1 2 2 Long-Term Financial Liabilities 0 0 0 0 Total Comprehensive Profit 102 152 164 173 Other Non-Current Liabilities 101 108 116 122 Controlling Interests 102 154 165 175 Total Liabilities 1,382 1,481 1,586 1,667 Non-Controlling Interests -1 -2 -2 -2 Controlling Interests 846 891 964 1,038 EBITDA 193 224 247 257 Capital Stock 23 23 23 23 FCF (Free Cash Flow) 18 74 178 187 Capital Surplus 124 124 124 124 EBITDA Margin (%) 5.7 6.0 6.2 6.1 Retained Earnings 1,093 1,132 1,206 1,279 Operating Profit Margin (%) 4.7 5.1 5.4 5.4 Non-Controlling Interests 10 10 12 14 Net Profit Margin (%) 3.8 3.9 4.1 4.1 Stockholders' Equity 856 901 976 1,052

Cash Flows (Summarized) Forecasts/Valuations (Summarized) (Wbn) 12/17 12/18F 12/19F 12/20F 12/17 12/18F 12/19F 12/20F Cash Flows from Op Activities 39 88 188 197 P/E (x) 19.2 15.7 14.1 13.4 Net Profit 128 147 164 173 P/CF (x) 11.9 9.4 8.8 8.5 Non-Cash Income and Expense 77 95 96 97 P/B (x) 2.2 1.9 1.8 1.7 Depreciation 17 17 16 15 EV/EBITDA (x) 10.8 8.4 7.3 6.8 Amortization 19 19 17 16 EPS (W) 1,105 1,268 1,408 1,483 Others 41 59 63 66 CFPS (W) 1,783 2,108 2,260 2,345 Chg in Working Capital -122 -102 -11 -9 BPS (W) 9,812 10,201 10,843 11,481 Chg in AR & Other Receivables -77 -102 -97 -75 DPS (W) 760 870 960 1,020 Chg in Inventories 0 0 0 0 Payout ratio (%) 60.0 59.9 59.4 59.8 Chg in AP & Other Payables 18 54 53 41 Dividend Yield (%) 3.6 4.4 4.8 5.1 Income Tax Paid -48 -58 -67 -71 Revenue Growth (%) 4.4 10.3 7.2 5.2 Cash Flows from Inv Activities -15 54 -25 -23 EBITDA Growth (%) 2.7 16.1 10.3 4.0 Chg in PP&E -19 -13 -10 -10 Operating Profit Growth (%) 4.7 20.4 13.2 5.6 Chg in Intangible Assets -4 -6 -5 -5 EPS Growth (%) 44.1 14.8 11.0 5.3 Chg in Financial Assets 9 -7 -7 -6 Accounts Receivable Turnover (x) 2.8 2.8 2.8 2.8 Others -1 80 -3 -2 Inventory Turnover (x) 0.0 0.0 0.0 0.0 Cash Flows from Fin Activities -53 -107 -88 -97 Accounts Payable Turnover (x) 3.5 3.7 3.7 3.6 Chg in Financial Liabilities -6 0 0 0 ROA (%) 5.8 6.4 6.6 6.5 Chg in Equity 0 0 0 0 ROE (%) 15.8 16.8 17.5 17.0 Dividends Paid -34 -30 -88 -97 ROIC (%) 26.4 26.4 30.1 31.7 Others -13 -77 0 0 Liability to Equity Ratio (%) 161.5 164.4 162.5 158.5 Increase (Decrease) in Cash -45 39 75 77 Current Ratio (%) 147.4 148.7 152.1 155.6 Beginning Balance 373 328 367 442 Net Debt to Equity Ratio (%) -42.2 -44.9 -49.5 -53.5 Ending Balance 328 367 442 519 Interest Coverage Ratio (x) 52.7 300.6 344.5 366.0 Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 5 July 30, 2018 Cheil Worldwide

APPENDIX 1

Important Disclosures & Disclaimers 2-Year Rating and Target Price History

Company (Code) Date Rating Target Price (W) Cheil Worldwide Cheil Worldwide (030000) 12/18/2017 Buy 25,000 30,000 10/30/2017 Buy 24,000 25,000 07/30/2017 Trading Buy 22,000 20,000 04/28/2017 Trading Buy 21,000 15,000 01/30/2017 Buy 21,000 11/28/2016 Buy 19,000 10,000 04/22/2016 Trading Buy 19,000 5,000

0 Jul 16 Jul 17 Jul 18

Stock Ratings Industry Ratings Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening Sell : Relative performance of -10% Ratings and Target Price History (Share price (─), Target price (▬), Not covered (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆)) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at Mirae Asset Daewoo Co., Ltd., we may call a trading opportunity in case there is a technical or short-term material development. * The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings. * The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Equity Ratings Distribution & Investment Banking Services Buy Trading Buy Hold Sell Equity Ratings Distribution 73.40% 14.78% 11.82% 0.00% Investment Banking Services 77.42% 9.68% 12.90% 0.00% * Based on recommendations in the last 12-months (as of June 30, 2018)

Disclosures As of the publication date, Mirae Asset Daewoo Co., Ltd. and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.

Analyst Certification The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws or regulations thereof. Each Analyst responsible for the preparation of this report certifies that (i) all views expressed in this report accurately reflect the personal views of the Analyst about any and all of the issuers and securities named in this report and (ii) no part of the compensation of the Analyst was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report. Mirae Asset Daewoo Co., Ltd. (“Mirae Asset Daewoo”) policy prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. Like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or Mirae Asset Daewoo except as otherwise stated herein.

Disclaimers This report was prepared by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Korean language. In case of an English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws or regulations or subject Mirae Asset Daewoo or any of its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof. This report is for general information purposes only and it is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The report does not constitute investment advice to any person and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account the particular investment objectives, financial

Mirae Asset Daewoo Research 6 July 30, 2018 Cheil Worldwide

situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising out of the use hereof. Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions, views and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. No part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo.

Distribution United Kingdom: This report is being distributed by (UK) Ltd. in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents. United States: Mirae Asset Daewoo is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This report is distributed in the U.S. by Mirae Asset Securities (USA) Inc., a member of FINRA/SIPC, to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934, as amended. All U.S. persons that receive this document by their acceptance hereof represent and warrant that they are a major U.S. institutional investor and have not received this report under any express or implied understanding that they will direct commission income to Mirae Asset Daewoo or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with Mirae Asset Securities (USA) Inc. Mirae Asset Securities (USA) Inc. accepts responsibility for the contents of this report in the U.S., subject to the terms hereof, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor. Under no circumstances should any recipient of this research report effect any transaction to buy or sell securities or related financial instruments through Mirae Asset Daewoo. The securities described in this report may not have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from the registration requirements. Hong Kong: This report is distributed in Hong Kong by Mirae Asset Securities (HK) Limited, which is regulated by the Hong Kong Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person. All Other Jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Mirae Asset Daewoo or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Mirae Asset Daewoo and its affiliates to any registration or licensing requirement within such jurisdiction.

Mirae Asset Daewoo Research 7 July 30, 2018 Cheil Worldwide

Mirae Asset Daewoo International Network

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Mirae Asset Daewoo Research 8