[Korea] Media November 11, 2020

CJ CGV Sell (079160 KS ) (Maintain)

Scaling down to survive TP: W16,000 ▲ Downside: -27.1%

Mirae Asset Daewoo Co., Ltd. Jeong -yeob Park [email protected]

3Q20 review : Weaker than Consolidated revenue of W 155 .2bn (-68.8% YoY) , operating loss of W 96 .8bn (turn to red YoY ) expected ó The vicious cycle of plunging demand and an absence of content continued across all markets. As a result, CJ CGV’s fixed-cost burden increased, weighing on earnings. ó Revenue slumped roughly 69% YoY, hurt by the fall in theater attendance amid the pandemic and the absence of Hollywood content. ó SG&A expenses fell 29% YoY, as enhanced operational efficiency led to savings (rent and labor). ó By country, operating losses amounted to W43.3bn in Korea, W19.1bn in China, W8bn in Turkey, and W5.6bn in Vietnam. ó At the net level, the company recorded a loss of W131.5bn ( net loss attributable to owners of the parent of W100.4bn) due to financing expenses.

Remaking of the theater Break -even point needs to be lowered through downsizing business ó By country, we estimate CJ CGV’s break-even theater attendance at 160mn for Korea, 1.5bn for China, 60mn for Turkey, and 50mn for Vietnam. ó Compared to our 2020 forecasts, these figures imply increases of 106% for Korea, 180% for China, 41% for Turkey, and 67% for Vietnam. ó To close the gap with break-even levels, we believe the company needs both: 1) an easing of top-line headwinds (content/pandemic); and 2) a dramatic reduction in theater sites. ó Of note, box-office revenue recorded a slower rate of decline in October (-66% in Korea, -22% in China, -97% in Turkey, and -50% in Vietnam). ó Key variables: Spread of the virus and the release of Hollywood films (need to monitor US cases)

Recommendation and valuation Maintain Sell and raise TP to W16,000 ó Our target price is based on the sum of the values of the domestic operation (W376.1bn), the stake in CGI (W500.4bn), and the Turkey operation (W156bn), minus net debt (W467.4bn). ó Expected attendance levels should decline after a couple of years, considering: 1) the six-month void in theater experience globally; 2) changes in the content distribution chain due to the rise of alternative platforms (direct-to-OTT releases); and 3) the decrease in film investments. ó In the near term, box-office recoveries across markets and the resolution of financing risks will be key. The company’s Turkey total return swap (TRS) contract is set to mature in 2Q21. In the long term, CJ CGV needs to downsize its multiplex business (30% reduction planned over a three-year period), given the erosion in theater demand. ó We could upgrade our rating if top line recovers more sharply than expected and Hollywood film releases show signs of normalizing. Key data

Current price (11/10/20, W) 21,950 Market cap (Wbn) 770 130 CJ CGV KOSPI OP (20F, Wbn) -345 Shares outstanding (mn) 35 110 Consensus OP (20F, Wbn) -297 Free float (%) 55.7 90

70 EPS growth (20F, %) - Foreign ownership (%) 5.4

50 P/E (20F, x) - Beta (12M) 1.66

30 Market P/E (20F, x) 16.8 52-week low (W) 12,835 11.19 3.20 7.20 11.20 KOSPI 2,452.83 52-week high (W) 35,739

Share performance Earnings and valuation metrics (%) 1M 6M 12M (Dec.) 2016 2017 2018 2019 2020F 2021F Absolute -1.6 0.8 -32.5 Revenue (Wbn) 1,432 1,714 1,769 1,942 693 1,367 Relative -4.0 -20.0 -41.2 OP (Wbn) 70 86 78 122 -345 -118

OP margin (%) 4.9 5.0 4.4 6.3 -49.8 -8.6 NP (Wbn) 12 -1 -141 -153 -413 -258 EPS (W) 583 -66 -6,647 -7,213 -19,540 -12,169 ROE (%) 3.1 -0.4 -49.6 -57.6 -707.2 91.3 P/E (x) 109.5 - - - - - P/B (x) 3.6 4.6 3.0 2.5 - - Div. yield (%) 0.5 0.5 0.5 0.0 0.0 0.0 Notes: Under consolidated K-IFRS; NP is attributable to owners of the parent Source: Company data, Mirae Asset Daewoo Research estimat es Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including t he US. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. November 11, 2020 CJ CGV

Table 1. Valuation (Wbn, x) Valuation Note Parent fair value 376 NOPLAT 37.6 2017-19 avg. Target P/NOPLAT 10.0 CGI Holdings (China, Vietnam, Indonesia) 500 71.43% ownership Valuation reflecting stake sale 1,168 Discount rate 40.0 Turkey business fair value 156 50% of acquisition price Turkey business acquisition price 312 Total valuation of W796bn at acquisition; 39% stake Total value 1,033 Net debt 467 Fair value 566 TP (W) 16,113 Reflected increase in share count Source: Mirae Asset Daewoo Research estimates

Table 2. Consolidated earnings and forecasts (Wbn, %, mn, %p) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20P 4Q20F 2019 2020F 2021F Revenue 465 482 497 498 243 42 155 253 1,942 693 1,367 Parent 249 266 282 257 128 36 99 138 1,054 401 775 Subsidiaries 216 216 215 242 115 6 56 114 888 292 592 China (consolidated) 84 75 81 79 13 1 36 63 320 113 271 Turkey 39 26 26 55 34 0 1 18 146 53 96 Vietnam 46 53 45 42 30 6 15 28 186 80 144 4DPLEX 21 32 28 32 21 1 10 17 113 50 90 OP 23.5 23.5 31.0 45.2 -71.6 -130.5 -96.8 -45.7 123 -345 -118 OP margin 5.1 4.9 6.2 9.1 -29.4 -313.8 -62.4 -18.1 6.3 -49.8 -8.6 Parent 7.3 9.3 26.5 25.4 -32.9 -70.1 -43.3 -21.1 68 -168 -12 Subsidiaries 16.3 14.2 4.5 19.8 -38.7 -60.4 -53.5 -24.6 55 -177 -106 China (consolidated) 6.6 1.1 1.6 3.0 -30.2 -29.8 -19.1 2.0 12 -77 -33 Turkey (excluding PPA) 2.3 -2.9 -5.0 12.2 0.5 -1.6 -8.0 -3.1 7 -12 -9 Vietnam 7.2 6.4 4.1 2.5 0.6 -8.3 -5.6 -2.8 20 -16 0 4DPLEX -0.5 4.6 1.6 -4.4 -3.2 -9.4 -8.6 -8.5 1 -30 -22 Pretax profit -9.1 -8.6 -3.2 -207.7 -120.5 -177.4 -136.4 -81.9 -229 -516 -279 NP -8.6 -9.8 -7.1 -213.5 -118.6 -174.9 -131.5 -79.0 -239 -504 -272 Net margin -1.8 -2.0 -1.4 -42.9 -48.7 -420.5 -84.8 -31.3 -12.3 -72.8 -19.9 NP (owners of the parent) -6.9 -8.8 1.8 -138.7 -95.5 -143.2 -100.4 -74.5 -152.6 -413.5 -257.5 YoY Revenue 5.3 19.1 5.2 10.6 -47.6 -91.4 -68.8 -49.3 9.8 -64.3 97.4 Parent 13.0 20.3 0.0 2.2 -48.6 -86.5 -65.0 -46.2 8.1 -62.0 93.3 Subsidiaries -2.3 17.6 12.8 21.3 -46.5 -97.4 -73.8 -52.6 11.8 -67.1 102.9 China (consolidated) -8.5 7.8 -6.8 12.5 -84.3 -98.9 -55.9 -20.2 0.2 -64.6 140.0 Turkey -38.3 -17.0 20.8 5.6 -12.9 -100.0 -95.7 -66.7 -13.2 -63.5 80.0 Vietnam 42.8 32.5 30.7 36.0 -33.7 -88.2 -67.0 -32.0 35.2 -57.0 80.0 OP 22.6 8,719.9 -5.1 76.6 TTR TTR TTR TTR 58.5 TTR RR NP TTR RR RR RR RR RR RR RR RR RR RR Key assumptions China attendance 480 329 473 437 61 0 168 306 1,719 536 1,285 CGV share 2.3 2.6 2.4 2.5 2.5 - 2.8 2.8 2.4 2.7 2.8 Turkey attendance 19 10 8 23 17 0 0 7 59 24 43 CGV share 40.0 43.4 42.4 39.8 38.7 0.0 73.8 39.8 40.8 39.7 40.0 Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 2 November 11, 2020 CJ CGV

Table 3. Parent earnings and forecasts (Wbn, %, mn, %p) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20P 4Q20F 2019 2020F 2021F Revenue 249 266 282 257 128 36 99 138 1,054 401 775 Box office 169 172 185 166 79 20 58 84 691 241 484 Concessions 44 48 52 47 22 5 15 22 191 64 119 Screen ads 19 28 29 28 17 3 14 23 104 57 92 Other 17 19 16 16 10 8 12 9 68 40 80 OP 7 9 26 25 -33 -70 -43 -21 68 -168 -12 OP margin 2.9 3.5 9.4 9.9 -25.8 -194.7 -43.9 -15.3 6.5 -41.8 -1.6 Pretax profit -2 1 15 -72 -45 -87 -50 -28 -58 -211 -55 NP -2 0 13 -77 -44 -85 -46 -26 -66 -202 -53 Net margin -0.8 0.0 4.6 -30.0 -34.3 -237.3 -46.9 -18.7 -6.2 -50.3 -6.8 YoY Revenue 13.0 20.3 0.0 2.2 -48.6 -86.5 -65.0 -46.2 8.1 -62.0 93.3 Box office 13.5 16.7 -2.8 1.7 -53.1 -88.5 -68.9 -49.1 6.5 -65.2 101.0 Concessions 18.3 29.7 4.7 13.8 -51.3 -90.0 -70.9 -52.7 15.7 -66.7 86.3 Screen ads -11.7 19.7 4.6 1.2 -9.3 -88.8 -53.1 -19.1 3.7 -45.4 62.5 Other 32.7 34.1 12.7 -17.4 -40.5 -55.4 -23.4 -45.2 12.3 -41.7 102.0 OP 551.8 TTB 3.5 139.1 TTR TTR TTR TTR 89.5 TTR RR NP RR TTB TTB RR RR TTR TTR RR RR RR RR Key assumptions Domestic attendance 55 54 61 56 26 6 17 28 227 78 156 CGV attendance 26 26 29 26 13 3 9 13 107 38 76 CGV share 47.5 47.2 47.0 47.0 48.4 49.2 51.7 47.0 47.2 48.7 48.7 YoY Domestic attendance 7.4 20.4 -8.0 5.2 -52.7 -88.3 -71.6 -50.0 4.8 -65.7 100.0 CGV attendance 6.5 18.8 -6.2 5.0 -51.9 -87.8 -68.8 -50.0 4.9 -64.6 100.0 CGV share -0.4 -0.6 0.9 -0.1 0.9 2.0 4.7 0.0 0.1 1.5 0.0 Note: M/S figures are based on avg. data. Source: Company data, Mirae Asset Daewoo Research estimates

Table 4. Peer valuation/earnings table (Wbn, %, x)

Return Market Revenue OP OP margin ROE P/E P/B EV/EBITDA

YTD cap 20F 21F 20F 21F 20F 21F 20F 21F 20F 21F 20F 21F 20F 21F Theater CJ CGV -30.0 770 736 1,462 -271 46 -36.8 3.2 -581.4 -31.3 - - 4.8 5.8 63.1 11.4 J Contentree -21.3 497 393 574 -39 41 -9.8 7.2 -14.4 5.3 - 31.3 1.8 1.7 26.1 10.1 AMC Entertainment (US) -47.9 578 1,481 4,065 -4,094 -553 -276.4 -13.6 464.5 24.0 - - - - - 76.3 Cinemark -61.4 1,725 815 2,342 -735 -84 -90.2 -3.6 -44.0 -19.4 - - 1.7 2.1 - 12.8 Kinepolis (BE) -44.0 1,195 284 610 -78 70 -27.3 11.5 -38.4 16.3 - 98.7 6.6 6.3 92.2 16.0 Cineworld (UK) -73.9 1,162 1,384 3,241 -725 373 -52.4 11.5 -37.0 -11.0 - - 0.4 0.4 166.4 11.5 Village Roadshow (AU) -34.2 397 599 757 7 43 1.1 5.7 -4.0 7.5 - 30.9 6.5 4.7 14.5 8.5 Wanda (CN) 2.0 6,494 1,168 2,950 -285 310 -24.4 10.5 -11.4 11.4 - 24.0 3.0 2.7 - 13.2 Hengdian Entertainment -8.3 1,847 220 524 -40 69 -18.1 13.1 -8.7 15.3 - 31.2 5.6 4.9 - 13.3 Shanghai Film -0.8 908 65 192 -37 30 -56.7 15.8 -9.9 7.2 - 27.9 2.4 2.2 - 15.7 Major Cineplex (TH) -35.0 539 116 297 -45 22 -38.9 7.5 -11.9 12.6 - 22.9 2.6 2.4 233.0 11.1 Inox Leisure (IN) -28.6 422 73 283 -14 52 -18.5 18.4 -40.6 9.8 - 33.6 5.9 5.4 522.9 6.0 Theater equipment IMAX (US) -31.4 921 146 342 -138 15 -94.1 4.3 -13.0 4.5 - 41.9 2.1 1.8 - 10.4 IMAX China (CN) -18.6 661 54 138 -16 57 -29.0 41.6 -5.2 18.4 - 14.9 2.5 2.2 102.7 6.9 Avg. -31.0 -55.1 9.5 -25.4 5.0 - 35.7 3.5 3.3 152.6 15.9 Source: Bloomberg, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 3 November 11, 2020 CJ CGV

CJ CGV (079160 KS)

Income statement (summarized) Balance sheet (summarized) (Wbn) 2018 2019 2020F 2021F (Wbn) 2018 2019 2020F 2021F Revenue 1,769 1,942 693 1,367 Current assets 497 677 290 323 Cost of revenue 857 1,157 393 874 Cash & equivalents 185 352 125 123 Gross profit 912 785 300 493 AR & other receivables 190 201 102 76 SG&A expenses 835 663 645 611 Inventory 19 22 11 22 OP (adj.) 78 122 -345 -118 Other current assets 103 102 52 102 OP 78 122 -345 -118 Non-current assets 1,737 3,847 3,570 3,398 Non-operating profit -288 -351 -171 -161 Investments in associates 50 54 28 54 Net financial income -42 -152 0 0 PP&E 832 924 699 491 Net income from associates 5 5 -4 -4 Intangible assets 500 336 307 295 Pretax profit -210 -229 -516 -279 Total assets 2,234 4,524 3,860 3,721 Income tax -22 11 -12 -7 Current liabilities 861 1,120 926 1,015 Profit from continuing operations -189 -239 -504 -272 AP & other payables 257 281 143 281 Profit from discontinued operations 0 0 0 0 Short-term financial liabilities 435 666 696 561 NP -189 -239 -504 -272 Other current liabilities 169 173 87 173 Attributable to owners -141 -153 -413 -258 Non-current liabilities 822 2,803 2,848 2,892 Attributable to minority interests -48 -86 -91 -15 Long-term financial liabilities 721 2,714 2,803 2,803 Total comprehensive income -360 -247 -512 -272 Other non-current liabilities 101 89 45 89 Attributable to owners -200 -148 -422 -225 Total liabilities 1,684 3,923 3,774 3,907 Attributable to minority interests -161 -98 -90 -48 Equity attributable to owners 259 270 -154 -411 EBITDA 237 490 -26 111 Capital stock 11 11 11 11 FCF -140 84 -317 187 Capital surplus 90 90 90 90 EBITDA margin (%) 13.4 25.2 -3.8 8.1 Retained earnings 182 15 -400 -657 OP margin (%) 4.4 6.3 -49.8 -8.6 Minority interests 291 331 240 225 Net margin (%) -8.0 -7.9 -59.6 -18.9 Shareholders' equity 550 601 86 -186

Cash flow statement (summarized) Key valuation metrics/ratios (Wbn) 2018 2019 2020F 2021F 2018 2019 2020F 2021F Operating cash flow 105 283 -277 191 P/E (x) - - - - NP -189 -239 -504 -272 P/CF (x) 3.0 1.3 - - Non-cash income/expenses 447 750 360 221 P/B (x) 3.0 2.5 - - Depreciation 139 326 302 212 EV/EBITDA (x) 8.9 8.3 - 38.3 Amortization 21 42 17 16 EPS (W) -6,647 -7,213 -19,540 -12,169 Other 287 382 41 -7 CFPS (W) 12,220 24,143 -6,827 -2,424 Chg. in working capital -107 -50 -100 235 BPS (W) 12,271 12,777 -7,251 -19,419 Chg. in AR & other receivables -4 -14 86 46 DPS (W) 200 0 0 0 Chg. in inventory 5 -3 8 -11 Dividend payout ratio (%) -2.2 0.0 0.0 0.0 Chg. in AP & other payables -72 -20 -96 60 Dividend yield (%) 0.5 0.0 0.0 0.0 Income tax -15 -30 7 7 Revenue growth (%) 3.2 9.8 -64.3 97.3 Cash flow from investing activities -40 -228 22 -31 EBITDA growth (%) -7.4 106.8 - - Chg. in PP&E -35 -185 -39 -4 OP growth (%) -9.3 56.4 - - Chg. in intangible assets -9 -25 -1 -4 EPS growth (%) - - - - Chg. in financial assets 22 -11 23 -23 AR turnover (x) 10.5 11.2 5.1 19.9 Other -18 -7 39 0 Inventory turnover (x) 96.5 96.3 42.6 84.1 Cash flow from financing activities -6 105 -1 -135 AP turnover (x) 7.2 9.6 4.3 9.6 Chg. in financial liabilities 37 2,225 118 -135 ROA (%) -8.0 -7.1 -12.0 -7.2 Chg. in equity 0 0 0 0 ROE (%) -49.6 -57.6 -707.2 91.3 Dividends -12 -12 -2 0 ROIC (%) 4.5 5.3 -10.3 -3.3 Other -31 -2,108 -117 0 Debt-to-equity ratio (%) 306.0 652.6 4,372.1 -2,102.0 Chg. in cash 53 166 -226 -3 Current ratio (%) 57.7 60.4 31.3 31.8 Beginning balance 133 185 352 125 Net debt-to-equity ratio (%) 175.1 503.0 3,905.2 -1,741.2 Ending balance 185 352 125 123 Interest coverage ratio (x) 1.6 0.8 0.0 0.0 Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 4 November 11, 2020 CJ CGV

Appendix 1

Important disclosures and disclaimers Two-year rating and TP history

Company Date Rating TP (W) (W) CJ CGV CJ CGV (079160) 11/11/20 Sell 16,000 60,000 08/10/20 Sell 15,000 50,000 02/12/20 Hold 40,000 08/09/19 Buy 48,075 05/13/19 Buy 47,168 30,000 11/09/18 Buy 50,796 20,000 10,000

0 Nov 18 Nov 19 Nov 20

Stock ratings Sector ratings Buy Expected 12-month performance: +20% or greater Overweight Expected to outperform the market over 12 months Trading Buy Expected 12-month performance: +10% to +20% Neutral Expected to perform in line with the market over 12 months Hold Expected 12-month performance: -10% to +10% Underweight Expected to underperform the market over 12 months Sell Expected 12-month performance: -10% or worse

Rating and TP history: Share price (─), TP (▬), Not Rated ( ■), Buy (▲), Trading Buy (■), Hold (●), Sell ( ◆) * Our investment rating is a guide to the expected return of the stock over the next 12 months. * Outside of the official ratings of Mirae Asset Daewoo Co., Ltd., analysts may call trading opportunities should technical or short-term material developments arise. * The TP was determined by the research analyst through valuation methods discussed in this report, in part based on estimates of future earnings. * TP achievement may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Ratings distribution and investment banking services Buy Trading Buy Hold Sell Ratings distribution 73.62% 14.11% 11.04% 1.23% Investment banking services 72.22% 11.11% 16.67% 0.00% * Based on recommendations in the last 12 months (as of September 30, 2020)

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 m ore 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 divisions. 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 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 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

Mirae Asset Daewoo Research 5 November 11, 2020 CJ CGV

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. For further information regarding company-specific information as it pertains to the representations and disclosures in this Appendix 1, please contact [email protected] or +1 (212) 407-1000.

Distribution United Kingdom: This report is being distributed by Mirae Asset Securities (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 6 November 11, 2020 CJ CGV

Mirae Asset Daewoo International Network

Mirae Asset Daewoo Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd. One-Asia Equity Sales Team Units 8501, 8507-8508, 85/F 41st Floor, Tower 42 Mirae Asset Center 1 Building International Commerce Centre 25 Old Broad Street, 26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 1 Austin Road West London EC2N 1HQ Korea Kowloon United Kingdom Hong Kong Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000

Mirae Asset Securities (USA) Inc. Mirae Asset Wealth Management (USA) Inc. Mirae Asset Wealth Management (Brazil) CCTVM 810 Seventh Avenue, 37th Floor 555 S. Flower Street, Suite 4410, Rua Funchal, 418, 18th Floor, E-Tower Building New York, NY 10019 Los Angeles, California 90071 Vila Olimpia USA USA Sao Paulo - SP 04551-060 Brazil Tel: 1-212-407-1000 Tel: 1-213-262-3807 Tel: 55-11-2789-2100

PT. Mirae Asset Sekuritas Indonesia Mirae Asset Securities (Singapore) Pte. Ltd. Mirae Asset Securities (Vietnam) LLC Equity Tower Building Lt. 50 6 Battery Road, #11-01 7F, Saigon Royal Building Sudirman Central Business District Singapore 049909 91 Pasteur St. Jl. Jend. Sudirman, Kav. 52 -53 Republic of Singapore District 1, Ben Nghe Ward, Ho Chi Minh City Jakarta Selatan 12190 Vietnam Indonesia Tel: 62-21-515-3281 Tel: 65-6671-9845 Tel: 84-8-3911-0633 (ext.110) Mirae Asset Securities Mongolia UTsK LLC Mirae Asset Investment Advisory (Beijing) Co., Ltd Beijing Representative Office #406, Blue Sky Tower, Peace Avenue 17 2401B, 24th Floor, East Tower, Twin Towers 2401A, 24th Floor, East Tower, Twin Towers 1 Khoroo, Sukhbaatar District B12 Jianguomenwai Avenue, Chaoyang District B12 Jianguomenwai Avenue, Chaoyang District Ulaanbaatar 14240 Beijing 100022 Beijing 100022 Mongolia China China

Tel: 976-7011-0806 Tel: 86-10-6567-9699 Tel: 86-10-6567-9699 (ext. 3300) Shanghai Representative Office Ho Chi Minh Representative Office 38T31, 38F, Shanghai World Financial Center 7F, Saigon Royal Building 100 Century Avenue, Pudong New Area 91 Pasteur St. Shanghai 200120 District 1, Ben Nghe Ward, Ho Chi Minh City China Vietnam

Tel: 86-21-5013-6392 Tel: 84-8-3910-7715

Mirae Asset Daewoo Research 7