2016 CSV REPORT ABOUT THIS REPORT CONTENTS

CJ CSV REPORT REPORTING PERIOD CONTACT INFO. CHAIRMAN’S MESSAGE 2 CJ is leading CSV (Creating Shared AND SCOPE The 2016 CJ CSV Report is published in Value) management to create economic This report contains CJ Group’s activities Korean and English, and it is available on 01 GLOBAL LIFESTYLE COMPANY, CJ and social values through management and performance between January CJ Corporation website (www.cj.net). For CJ MANAGEMENT PHILOSOPHY 6 activities. Since 2015, CJ has been 1, 2016 and December 31, 2016, and more details, please send your inquiries to BUSINESS OVERVIEW 8 annually publishing the CJ CSV Report some performance in 2017 considered the following: GLOBAL STATUS 13 CSV GOVERNANCE STRUCTURE 14 in order to share with our stakeholders significant for reporting. The scope of the direction and performance of CSV reporting covers the activities of CJ 02 CJ CSV MANAGEMENT management. Taking a central role, CJ Group and our nine CJ affiliates (CJ CONTACT CSV MANAGEMENT 18 Creating Shared Value Team formed a CheilJedang, CJ Freshway, CJ Foodville, CJ Corporation ETHICAL MANAGEMENT 20 task force team with the CSV teams of CJ Logistics, CJ O Shopping, CJ CSV Team, 26, Pildong-ro, SAFETY MANAGEMENT 22 Group’s nine affiliates to prepare the OliveNetworks, CJ E&M, CJ CGV and Jung-gu, , Korea Tel. 82-2-726-8114 www.cj.net ENVIRONMENTAL MANAGEMENT 28 report, and discussed the direction of CJ HelloVision) and two foundations SOCIAL RESPONSIBILITY 30 CSV initiatives and reporting. CJ will strive (CJ Welfare Foundation and CJ Cultural CJ CheilJedang MATERIALITY ASSESSMENT 34 CJ CheilJedang Center, 330, Dongho-ro, to achieve shared growth with society Foundation). Jung-gu, Seoul, Korea Tel. 82-2-6740-1114 www.cj.co.kr and transparently report all progress and 03 REPRESENTATIVE CSV PROJECTS performance to stakeholders. COMPLIANCE WITH CJ Freshway FOR IMPLEMENTATION OF UN SDGs THE GLOBAL GUIDELINES 5th Floor, CJ CheilJedang Center, 330, Dongho-ro, SDGs IMPLEMENTATION EFFORTS 38 Jung-gu, Seoul, Korea 2016 REPORT FEATURES This Report introduces CJ’s overall CSV NO POVERTY 40 Tel. 82-2-2149-6114 www.cjfreshway.com The 2016 CJ CSV Report highlights management status and the key CSV GOOD HEALTH AND WELL-BEING 44 CJ Foodville the performance and future plans of projects based on GRI G4 Guidelines. DECENT WORK AND ECONOMIC GROWTH 48 KT&G Eulji-ro Tower, 34, Mareunnae-ro, compliance-based CSV activities, The financial information included in Jung-gu, Seoul, Korea QUALITY EDUCATION 56 conducted to create the social value this report has been prepared according Tel. 82-2-1577-0700 www.cjfoodville.co.kr ZERO HUNGER 60

CJ pursues at the group and affiliate to the Korean International Financial CJ Logistics level (CJ CheilJedang, CJ Freshway, CJ Reporting Standards (K-IFRS). In CJ Logistics Building, 53, Sejong-daero 9-gil, 04 CSV MANAGEMENT OF AFFILIATES Jung-gu, Seoul, Korea FOOD & FOOD SERVICES / BIO & PHARMA Foodville, CJ Logistics, CJ O Shopping, addition, the reliability of this report was Tel. 82-1588-1255 www.cjlogistics.com CJ OliveNetworks, CJ E&M, CJ CGV and secured through a review by external CJ CHEILJEDANG 66 CJ O Shopping CJ FRESHWAY 72 CJ HelloVision). In particular, this report experts and the results of the review are 870-13, Gwacheon-daero, Seocho-gu, Seoul, Korea CJ FOODVILLE 78 contains the direction and performance available under “External Reviews” in the Tel. 82-2-2107-0114 www.cjoshopping.com RETAIL & LOGISTICS of CJ Group’s endeavor to fulfill the Appendix. CJ OliveNetworks CJ LOGISTICS 84 UN Sustainable Development Goals (Olive Young) 3, 5-8th Floor, Twin City Office Building, 56, Dongja-dong, Yongsan-gu, Seoul, Korea CJ O SHOPPING 90 (UN SDGs), pursued together by the Tel. 82-2-1577-4887 CJ OLIVENETWORKS 96 international society. (IT Business) 10-14th Floor, Twin City Namsan Office Building, 56, Dongja-dong, Yongsan-gu, Seoul, Korea ENTERTAINMENT & MEDIA Tel. 82-2-6252-0000 CJ E&M 102 www.cjolivenetworks.co.kr CJ CGV 108

CJ E&M CJ HELLOVISION 114 CJ E&M Center, 66, Sangamsan-ro, Mapo-gu, Seoul, Korea Tel. 82-2-371-5501 www.cjenm.com 05 APPENDIX

CSR INDEX 121 CJ CGV 6th Floor, I’PARK MALL, 55, Hangang-daero 23-gil, FINANCIAL STATEMENT 122 Yongsan-gu, Seoul, Korea GLOBAL GUIDELINE 124 Tel. 82-1544-1122 www.cgv.co.kr EXTERNAL REVIEW 127

CJ HelloVision EFFORTS TO SPREAD CSV 128 6th Floor, 19, Woldcupbuk-ro 56-gil, Sangam-dong, AND CSV AWARDS RECORD Mapo-gu, Seoul, Korea Tel. 82-1855-1000 www.cjhellovision.com 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Lee, Jay-Hyun Lee, Jay-Hyun in areas we excel and where social interestCSV in excel areas we and is We will needed. lead take in the creating jobs for the June 2017 June ChairmanCJ Group CJ Dear Esteemed Stakeholders, Chairman Lee, of CJ Group. I am Jay-Hyun evolved since into has Korea’s largestCJ started in a food1953, and as called company out lifestyle CheilJedang armedcompany with a business portfolio in four business Food areas: & Food Services, Bio & Pharma, Retail & Logistics Entertainment and & Media. mainThe determinant history in the to CJ’s growth of carry been businesses has required out nation as by the times. the and principle of “Business the Under Patriotism,” chairman Lee Byung- philosophy the of our founding following been we have path of growth the withchul, that can businesses current that is age by the needed and nation expertise. through to society the contribute and third-class businesses and into top class of creating process second- developing In the industries new and industrial of the businesses, expansion ecosystem. an there been Amidst has a on this been we have expansion, of creativity,journey growing together with our stakeholders. furtherCJ will to follow continue strengthen and principle of Business the Patriotism shared growth. We will and practice people, senior women citizens. and Everyone young at CJ will as socially to vulnerable, support youth such the foster help them realize their and dreams. We will industrial create an ecosystem of shared growth fair through distribution of roles with our partners. In all stages we will of CSV practice, strive to realize CSV management in a merely sense, not genuine a simple as slogan, so to voluntary as ensure diffusion spirit, of the principles the under voluntary participation to CJ’s businessesof sincerity, and relevance of all continuity, employees. same the Korea, principles. under we are promoting In all countries CSV abroad where entered, we have Beyond we create social new value by utilizing role in our core active competencies. this Through an we play process, are jobs, all of which decent tohelping eradicate poverty, quality and alleviate provide education inequality and commonthe challenges We will for forward to move with all continue belief the humankind. that CJ’s growth will that CJ’s development will lives the society and enrich of all growth the people. nationbe of the and interest support and continued willYour greatly be appreciated. you. Thank 2 CHAIRMAN’S MESSAGE MESSAGE CHAIRMAN’S CJ CSV MANAGEMENT REPRESENTATIVE CSV PROJECTS CSV MANAGEMENT OF AFFILIATES APPENDIX

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CJ, a global lifestyle company loved 2016 CJ CSV REPORT by the world enriches and delights lives beyond GLOBAL territorial and cultural borders

LIFESTYLE COMPANY, CJ CJ creates innovative lifestyles with its world-class technological power, differentiated cultural contents and new businesses combined with culture.

CJ MANAGEMENT PHILOSOPHY 6 BUSINESS OVERVIEW 8 GLOBAL STATUS 13 CSV GOVERNANCE STRUCTURE 14 2016 CJ CSV REPORT Shared value Building ecosystems SHARED GROWTH

First Best Principles Different APPENDIX CORE VALUES We are leading the way in spreading our culture in spreading way the leading are We togreater a the peopleof number across world. We aim so lives the to enrich of mankind world the experiences everyonethat around movies, Korean food, by enjoying happiness music. Based core the values on and TV shows CJ Talent, and Shared Growth of ONLYONE, creating been differentiated has customer to industrialvalue contributing by ecosystem developmentcreative through diversification. a global as lifestyleAdvancing that company lifestylesleads the world, the of people around CJ will utilize our core business competencies to create social values corporate for areas the and therefore attention, of in need strive and to nation. the to societycontribute and CJ BUSINESS PHILOSOPHY Contributing global to the community best the value by providing services and products with our ONLYONE Global lifestyle inspiring company life a new of health, convenience and happiness INTEGRITY•PASSION•CREATIVITY•RESPECT TALENT Exceptional talent Exceptional culture VISION & MISSION MISSION VISION CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 7 CJ is leading the way in spreading our beautifulCJ is in way spreading the leading culture to a greater the of people number across world. Suggesting global a lifestyle the through globalization CJ Wave, of “Hallyu,” Korean the envisions the world a where people all around world movies, live food, Korean enjoying happily music. CJ’s dream is to become and TV shows bestthe lifestyle that leads this company trend. realize this To dream, continuously are we services, creating systems products, new and untried projects others,by after pursuing the spirit, isONLYONE to promote which being first, the willWe only. the move best the and forward by fulfilling our social responsibilities until dream becomes the a reality. REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV creating culture Global company CSV management “Korea Express” ‘Hello Mobile’ for‘Season’s Table’, shared growth with farmhouses “CJ Blossom Park” launch Hetbahn 20th year in the since Launched CJ E&M Launched Acquired Korea’s largest logistics company, mobile the communication service, Launched branch Soho bibigo the London Opened Held first the “KCON,” a Hallyu cultural festival, in L.A. “CJ Logistics” Launched family Korean the restaurant, Launched bibigo listed Edition in Michelin 2014 London Guide Established CJ HealthCare Corp. CJ Foodville’sOpened 200th overseas store Center, Research Constructed CJ CheilJedang Established “CJ Breeding” CJ CGV’s 100th overseasOpened branch 10th anniversary of CJ Donors Camp 800th store OliveYoung’s Opened “bibigo Dumplings” U.S. market 1 in the No. ranked sales volume accumulated Recorded of 1.7 billion for CJ Foodville’sOpened 300th overseas store 2011-2016 CJ CJ GROUP OVERVIEW sugar for first the manufactured Having time domestic inonly Korea through technologies Corporationin 1953, CheilJedang was founded with philosophy the of “Business Patriotism,” is to national to economic contribute which further people’s living, growth to and human and businesssociety prosperity. through we Since management in we 1993, independent began Korea’s leading food been have culture and promoting creative business diversification endeavors; and innovation constant through a result,as we established four core business Foodof areas Food& Services, Bio Pharma,& RetailLogistics, & Entertainment and & Media. grew basis the of CJ, which journey on The of creative management, of a process been has growthshared with society creatingby new a industrial ecosystem. 2011 2012 2013 Declared 2014 2015 2016 Commencement of the lifestylethe business “CJ Donors Camp” CJ) (currently, Shop Established CJ Entertainment (currently, CJ O Shopping) Acquired “39 Shopping” Established Foodville (currently, CJ Foodville) Established CJ FoodSystem (currently, CJ Freshway) multiple program provider, “CJ Media” Launched “CJ Nine BridgesHeld LPGA Tour Classic” premium dessertLaunched cafe ‘’ Commenced bio the business in launched “CJ Welfare Foundation,” Founded Established “CJ Cultural the Foundation” Transitioned system company to a holding Korea’s firstOpened ‘4DX’theater in India channel “Star CJ” homeOpened shopping Held Music MAMA (Mnet Asian Awards) integrated the membershipLaunched service, “CJ ONE” “bibigo” global food the Korean brand, Launched Held MAMA in Macao KRW 1 trillionExceeded in global bio sales 2000-2010 2000 2002 2005 2006 2007 2009 2010 2010 6 and global advancement and Foundation for cultural business Foundation in Korea’s food industry (currently, IT Business Division of CJ OliveNetworks) stationbroadcasting ‘’ Declared independent management independent Declared Commenced food service business Established Cheil C&C Commenced entertainment media business and Korea’s firstOpened TV home shopping Group. CheilJedang Launched Released first the “Hetbahn” microwavable rice product, Commenced feed the business in commenced multiplex CGV and business Launched premium the steakhouse, ‘VIPS’ Launched “Mnet” Acquired music cable the TV channel, Korea’s first oven Launched brand, Korea’s firstOpened multiplex, “CGV Gangbyeon” Korea’s firstOpened health store, & beauty OliveYoung Recorded KRW 1 trillionRecorded in sales for first the time 1990-1999 1993 1994 1995 1996 1997 1998 1999 1991 With a vision to Lifestyles,” “Create Convenient Culture a New for and Healthy, Happy make efforts best the we constantly society value by providing to nation tothe contribute and services. to our customers and products with ONLYONE CJ MANAGEMENT PHILOSOPHY CJ MANAGEMENT

best and only only best and

The beginning of the Korea’s of the beginning first,The processing business processing Developed technology mass-production of “Interferon” Commenced pharma the business Established General the Center Research (Pharma) Commenced food frozen business the in Indonesia Established bio PT.CSI, the business branch Established Corporation CheilJedang first the Produced domestic sugar Started business flour manufacturing First sugar export in Korea flagship “Beksul” food brand Launched Initiated feed the business Released first The stock, soup “Dasida” Commenced pre-mix the production seasoning “Imi” acid Released nucleic Established Food Center the Research $100 million exceeded Export amount Started meat 1953-1989 1984 1987 1988 1982 1953 1958 1962 1965 1973 1975 1977 1978 1980 HISTORY OF CJ GROUP HISTORY 2016 CJ CSV REPORT (Unit: 1 billion KRW) 6,106 6,764 7,533 APPENDIX 2014 2015 2016 CJ FOODVILLE www.cjfoodville.co.kr global a As food service specialist striving to fulfill vision the to “Create World of New the Food Culture,” Foodvillle CJ is the dedicating utmostefforts higher-quality to providing brands, services by developing independent ‘VIPS’, ‘TOUS les as JOURS’, ‘A Twosome such Starting “Season’s Table.” ‘bibigo’and Place’, with entry the into Market U.S. in the CJ 2004, Foodville is opertaing approximately 360 stores China, and in ten countries including globalization the leading proactively Indonesia, foodof Korean culture . FOOD & FOOD SERVICES SALES SALES FOOD & FOOD SERVICES CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 9 CJ FRESHWAY www.cjfreshway.com CJ Freshway is Korea’s food leading distribution food service specialist.and CJ Freshway is global the leading food service distribution and industry carefully selected by supplying food ingredients direct through trading with sites, producing global based on sourcing competitiveness. With expertise in products our integrated as infrastructure, such and logistics Food system Safety Center, and CJ Freshway systematic provides safe food and ingredient management customized service and solutions to food service businesses. As such, FreshwayCJ is trustworthy a partner assisting customers best the convenience by providing satisfaction.and CJ Freshway is realizing the vision to become a “Global Food Network Creator” expertise through in food service and competitive sourcing global-standard power. REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ CHEILJEDANG www.cj.co.kr started first the as CJ CheilJedang out sugar led since has in Korea in 1953 and manufacturer Korea’s food industry over last the 60 years. CJ is globalizing tasteCheilJedang the of Korea with K-Food to combine cuisine local with Korean of premium range food, a wide introducing with thus technologies, new products and lifestyles.suggesting convenient healthy and We also create more a healthier delicious world and food developing by ingredients from nature. CJ culture of taste the is spreading and CheilJedang Korea to customers world the based on across innovation. consistent and R&D, succession CJ A DELICIOUS WORLD SERVICES FOOD & FOOD createsCJ global food globalization the culture leading by food. Korean of Food Food & Services business to create a delicious world is starting the pointof CJ. CJ’s Food & Food Services Business Division world taste the the with is spreading of Korea Korea’s leading across food culture and global of the top ten one food as is advancing which subsidiary CJ CheilJedang, as companies, such companies; Foodville, CJ grown has to become global a which foodservice provider with various is competitive developing Freshway,CJ which and power fooda as brands; ingredient distribution and food service specialist food in Korea by supplying ingredients its through established network. We and products will to create ONLYONE a healthy continue food convenient culture with healthy and world. the services, for people the around BIO & PHARMA ‘Hallyu’ across the globe beyond Asia. globe the beyond ‘Hallyu’ across ENTERTAINMENT & MEDIA ENTERTAINMENT CJ’s Entertainment & Media Business Division top-tier competitive technological and power. creates an enjoyable world by spreading The , Wave, Korean The worldcreates enjoyable by spreading an lives of people of bio-engineering future the by leading with its CJ’s Bio & Pharma Business Division contributes to healthy the % % 16 18 8 KRW % % SALES SALES BILLION 23,954.2 32 32 CJ will create the best products, services and culture and develop into a global lifestyleCJ will culture and services create best the and products, company in order livesthat pursues the to enrich of people customers’ across convenience, health, and happiness our goal of “GreatGlobal CJ,” we will achieve take position a leading world.the To in market the and long-termsecure growth engines global our differentiated based business through on expansion core competencies. BUSINESS OVERVIEWBUSINESS RETAIL & LOGISTICS RETAIL CJ creates Korea’s logistics distribution history. and CJ’s Retail & Logistics Business Division offers innovative lifestyles creates world. a more convenient and FOOD & FOOD SERVICE CJ creates global food globalization culture the by leading of food.Korean Food & Food Services business to create a delicious world is starting the point of CJ. 2016 CJ CSV REPORT (Unit: 1 billion KRW) 6,149 6,543 7,724 APPENDIX 2014 2015 2016 CJ OLIVENETWORKS www.cjolivenetworks.co.kr CJ OliveNetworks is customers’ leading lifestyles IT-based smart an through distribution service. customer advanced, the applied We have experience-based IT service to Olive Young, store beauty forour health healthy and and beautiful lifestyles. is creating new OliveYoung value with differentiatedshopping products. We are maximizing customer satisfaction with distribution products system and advanced an customers’ on to focus health, and beauty As for IT Business the Division,convenience. generalwe are providing IT services covering to implementation,IT planning operation and consulting alignedwith customers’the business environments. division The is growing a as reliable partner to realize customer satisfaction values. and RETAIL & LOGISTICS SALES SALES & LOGISTICS RETAIL CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 11 CJ O SHOPPING www.cjoshopping.com startedCJ O Shopping Korea’s first TV home customers’ service in 1995. Winning shopping advancing is now love, CJ O Shopping trust and Asia global the onto stage. CJ O beyond culture shopping new the is spreading Shopping world the range a wide by developing across T-commerce, as such channels, of shopping cataloguesmobile well as home TV and as format in the shopping “shoppertainment,” of A world- elements to shopping. adding of fun leaderclass media thrilling shopping customers, willCJ O Shopping strive top-quality to provide best the valuesservices that far exceed and customers’ expectations. REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ LOGISTICS www.cjlogistics.com Korea’s as first logisticsFounded in company in line LogisticsCJ 1930, advancing been has with Korea’ development economic for 87 years. CJ Logistics assists companies Korean in growth, while convenience providing achieving enjoyment to consumers. Currently,and CJ “global of the one Logistics as is advancing top 5” logistics companies advanced through development, technological convergence implementation investmentcontinuous and of growth strategies. CJ Logistics will develop Korea into a leader of logistics in Northeast a global logisticsAsia and by promoting hub new on taking continuously and innovation challenges. CJ WORLD A CONVENIENT & LOGISTICS RETAIL a lifestyle as leaderCJ is in global advancing the innovating logistics distribution industry. and Creating distribution historya new by starting and Korea’s of shopping first logistics and TV home shopping Retailbusiness, the Logistics& Business Division isCJ of making by world the more convenient growth people’s in epochal lifestyles.changing CJ OliveNetworksare achieving and CJ O Shopping Asia. Southeast CJ LogisticsChina and is also strengthening domestic overseas logistics and networks, global a leading as logistics company. advancing thus and (Unit: 1 billion KRW) 3,463 3,958 4,295 2014 2015 2016 CJ HEALTHCARE www.cjp.co.kr Contributing to creation the of a healthy world differentiated and with innovative prescription CJ health products, beauty & medicine and a pharmaceutical as HealthCare was launched divisionspin-offa through in Group CJ of April HealthCare CJ 2014. is developing differentiated innovation open through products with promising companies venture in Korea in to addition internal abroad efforts. R&D and Based CSV management, on CJ HealthCare will createof shared growth a future for Group, CJ pharmaceutical the businessesventure and industry. same At the time, as we will advance by company pharmaceutical a global-standard our development competenciesfocusing the on world-classof new pharmaceutical drugs and products. BIO & PHARMA SALES BIO & PHARMA SALES 10 CJ CHEILJEDANG CJ CHEILJEDANG FEED & LIVESTOCK www.cj.co.kr Feed & Livestock provides CJ CheilJedang differentiated solutions for and products customers all stages across of from handling the materials.raw Feed & Livestock CheilJedang CJ first the in feed production launched started overseasin and 1973 market entry in 1996. Currently, we are operating in plants 26 six countries. Feed & Livestock The Business Divisioneco-friendly on R&D is also conducting technologies as to control such pollutants, well as livestock methane, to as excretions and high- develop antibiotics feeds and to replace We are getting feedgrowth, products. efficiency closer to daily lives of our customers with the and premium “O’NATURE” pet food brands “O’FRESH.” We will strive livestock to provide values precious by respecting of the products nature. and humans CJ CHEILJEDANG CJ CHEILJEDANG BIO www.cj.co.kr Bio is global the bio leading CheilJedang CJ as foodindustry additives, such by producing lysine, feed additives including and acid nucleic methionine. Having tryptophanthreonine, and released naturally the and mass-produced fermented L-methionine for first the time, CJ business scope the Bio is expanding CheilJedang for amino as food acids and to areas, such new non- bio ingredients and medicine, eco-friendly solidifyingedible biomass, thus and position the a leaderas global in the bio industry. CJ is of bio future the engineering leading with its technological power built over last the 50 years. The Bio& Pharma Business the as Division, isto creating dedicated which a healthy world, advanced has world’s best in company this field competitive by strengthening the power of existing such products, largest the global occupied market already tryptophan, have we for which lysine and acid, nucleic as growth by securing future new businesses. HealthCare CJ share, and grown has to become Korea’s with company competitive pharmaceutical leading differentiated prescription and medicine products world’s the as 1 No. investment, Based our active on we are advancing health products. & beauty development a global Feed & Livestock as feed is achieving CJ CheilJedang company. pharmaceutical livestock securing by technology-centered company and business competitiveness basis the on of power.our excellent product A HEALTHY WORLD A HEALTHY BIO & PHARMA 2016 CJ CSV REPORT NORTH AMERICA USA APPENDIX China, the Second Home for Second CJ China, the CJ is 1 lifestyle No. growing the as global the network in company through China for the four business areas of Food & Food Services, Bio & Pharm, Retail & Logistics and Entertainment & Media. America, a Driving Engine for Hallyu Globalization is world’s the U.S., which largestThe market, iscenter the of global we are Hallyu in which our businesses in Food Entertainment & Foodexpanding Services and & Media businesses to those in a logistics channels. home shopping network, bases bio and production Australia, AsiaSoutheast and Global the Logistics Bases 1 logistics status No. the of the achieved Having service Asia provider in Southeast following the completion our business to areas feed, pharmaceutical, we are expanding of a bio in Indonesia, plant media bakery home contents. shopping, and Europe, a Bridgehead for Global Market Expansion global leading food secured Having of scope companies the in clients, Europe as CJ is expanding Food Bio & Food & Pharma Services . and businesses to Russia, Middle the East and for Hallyu Contents a Hub , In addition to Food Bio & Food & Pharma Services and businesses, media the HallyuCJ is comprised based on business contents spreading network in Japan of Mnet CJ Entertainment and Japan. Japan CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 13 OCEANIA JAPAN SOUTHEAST ASIA EAST ASIA AUSTRALIA PHILIPPINES Feed & Livestock MALAYSIA Southeast AsiaSoutheast / Australia ● CJ CheilJedang ● CJ Foodville ● CJ Freshway Bio ● CJ CheilJedang ● CJ CheilJedang ● CJ HealthCare ● CJ IMC ● CJ O Shopping ● CJ Logistics ● CJ E&M ● CJ CGV Japan ● CJ CheilJedang Bio ● CJ CheilJedang ● CJ HealthCare ● CJ O Shopping ● CJ Logistics ● CJ E&M REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CHINA RUSSIA INDONESIA VIETNAM SINGAPORE THAILAND INDIA Feed & Livestock America ● CJ CheilJedang ● CJ Foodville ● CJ Freshway Bio ● CJ CheilJedang ● CJ HealthCare ● CJ IMC ● CJ O Shopping ● CJ Logistics ● CJ E&M ● CJ CGV Europe ● CJ CheilJedang ● CJ Foodville Bio ● CJ CheilJedang ● CJ CheilJedang ● CJ IMC ● CJ O Shopping ● CJ Logistics ● CJ CGV CSV MANAGEMENT CSV EUROPE UK A delicious world, Food & Food Services A healthy world, Bio & Pharma world, RetailA convenient & Logistics world,An enjoyable Entertainment & Media Feed & Livestock CJ’S GLOBAL BUSINESS STATUS CJ’S GLOBAL China ● CJ CheilJedang ● CJ Foodville ● CJ Freshway Bio ● CJ CheilJedang ● CJ CheilJedang ● CJ HealthCare ● CJ IMC ● CJ O Shopping ● CJ OliveNetworks ● CJ Logistics ● CJ E&M ● CJ CGV CJ STATUS GLOBAL from Korea’s best lifestyleCJ is advancing to company a global top is that company loved by world. CSV management, the Through we are strengthening global competitivenesspeople around and creating social values to local communities by contributing well as our overseas as markets. 3,673 (Unit: 1 billion KRW) 3,566 3,923 2014 2015 2016 CJ HELLOVISION www.cjhellovision.com CJ HelloVision developing next- been has communication generation and broadcasting technologies from digital ranging cable TV to gigaUHD broadcasting, cloud Internet and In addition, “Hellobroadcasting. Mobile,” Korea’s is creating a reasonable phone, 1 budget No. mobile culture with differentiated the services world’s the of CJ. With creative the mind and top-level technology, CJ HelloVision, a smart media platform leader, is into developing a communicationbroadcasting & convergence service platform creates that lifestyle. new ENTERTAINMENT & MEDIA SALES & MEDIA SALES ENTERTAINMENT 12 CJ CGV www.cgv.co.kr Korea’sfirst multiplex theater,movie CGV CJ is best the cultureplex offering audiences satisfying a thoroughly movie-watching Korea’s as first our launch Since experience. multiplex cinema been in CJ CGV has 1998, movie-going culture. a new leading We are also world the customers with the providing around “cultureplex,” a value as cultural a playground to create lifestyle. a new an CJ CGV is providing optimal differentiated environment viewing and services specialized as through cinemas, such STARIUM. We and SphereX 4DX, ScreenX, enjoyment to ONLYONE CJ’s providing are customers in U.S., China, Vietnam, Indonesia, the Turkey. and CJ E&M www.cjenm.com CJ E&M (Entertainment & Media) is the leading globalization pop culture of Asian by providing platformvarious media and services contents for , broadcasting, music, performance, MCN. Equipped animation, and convention withfull competencies for entertainment the and media business, CJ E&M produces and globalizes competitive in line contents with sets thus examples media, of fast-changing and Hallyu for cultural contents. CJ has opened a new horizon for global pop culture and delivered enjoyment to people around the the delivered horizon new a for opened has CJ global enjoyment culture pop to and people around world K-Culture with CJ Entertainment wide-ranging contents. & Media is enjoyable creating an with leads cultural trends media, world CJ E&M, which the through world Hallyu across by spreading CJ performancefilm, created has culture; movie-going a new and movie and CJ CGV, which contents; communication services. media and HelloVision, advanced is introducing which AN ENJOYABLE WORLD AN ENJOYABLE & MEDIA ENTERTAINMENT 2016 CJ CSV REPORT STEP 2. DO STEP 3. CHECK Affiliates social projects contribution - Plan and implement and - Plan CSV / CSV Management Committee CSV Management Team CSV Management Advisory Board - Report performances on of CSV / Management Teams of AffiliatesCSV Management Teams Plans / executes social / contribution / executes Plans volunteer CSV activities services and affiliateof each - - CJ Group’s top CSV decision-making- CJ Group’s body - Operates sub-committees by business area - Advisory group comprised experts of outside social tailored projects contribution affiliate to each APPENDIX

A C CEO CSV Team D P Plans / operatesPlans CJ Welfare Foundation CJ Cultural Foundation and volunteer / managesPlans CJ Group’s / operatesPlans global CJ Group’s volunteer activities - - activities - CJ Group CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 15 CSV Management Committee CSV top decision-making body CSV Management Advisory Board CSV system CJ’s based on CSV project development group of Planning Division CSV Planning Advisory group comprised experts of outside Value Management DepartmentValue Innovation Lab CSV Innovation Operates system a conference of CSV-related affiliates employees and and of CJ Group executives regularProvides / training CSV / on education social contribution evaluatesImplements improvements and feedback employees project feedback and (provides executives makes proposals) project new and Establish strategies (budget, plans resource and personnel) / social for activities contribution CJ Group coreDraw issues with consideration for significance in business managementstakeholder and expectations management philosophy and handles management handles philosophy and CSV planning CJ Group’s - Establishes STEP 1. PLAN STEP 4. ACT CJ Group CSV CommitteeCJ Group - - - CJ - Voluntary CSV ORGANIZATION PDCA FRAMEWORK Division / CSV Team CSV Planning CJ Group - Strategy Department, ManagementFuture Center Research - REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Management CSV Management CSV MANAGEMENT CSV assessment.CSV addition,In decision-making consists body, CSV CJ CSV SYSTEM SYSTEM CSV DECISION-MAKING “CSV ManagementThe Committee,” the highest the group’sof the senior including executives senior of the CEO of CJ Group, executives CEOs of affiliates. and company holding The committee quarter meets to make each key evaluate CSV strategies decisions and and performances. Management CSV “Group The Committee,” consists group’s of the which senior employees,CSV-related and executives a regular on basisis convened to report CSV on performance training discuss on and results and improve evaluation the upon to and reflect how results. Furthermore, “ the Advisory is comprised which Board,” of 13 CJ the outside CSV experts and from academia evaluatesGroup, CJ’s CSV project strategies performances. from board and the Feedback is implemented into holding business by the affiliate. each and company CSV PROCESS In order to promote systematic effective and CSV management in all business areas, CJ has improved with CSV process the a PDCA (Plan- established frameworkDo-Check-Act) and a of phase each system to handle CSV governance PDCA. CJ is making important decisions under evaluation systematic phased the system and coveringbusiness evaluation unit to Group’s CJ mid-to long-term identifywe status the value shared of creation in relation to large-scale or business new items promote CSV for thus the for and future, the business. each (As of March 2017) (As of March Current Position Chairman & CEO of CJ Group ChairmanVice & CEO of CJ Group PresidentVice of General Management, CJ Group Chairman World of Happy Foundation DirectorOutside of KHM Hitech Professor, of Dept. Internal Seoul National Medicine, University College of Medicine Advisor at Kim & Chang Name Sohn Kyung-shik Chae-wook Lee Hyeon-jae Shin KimSeong-ho Kang Dae-hyung Kim Jong-yool Lee Sang-don BOD COMPOSITION BOD ACTIVITIES OF THE BOARD ACTIVITIES OF THE BOARD OF DIRECTORS totalA eightof meetingsBOD were in held rate outside of with2016 attendance 93.8% a directors. We deliberated determined and six items approbation management, company on management performance directorincluding and eight reporting and appointment, items. We also reported management the on performance operation status internaland of the accounting control system. Category Executive Directors Outside Directors 14 APPOINTMENT AND OF DIRECTORS EVALUATION the BOD’s independence, the ensure To External Director Recommendation Committee, composedfourof external directors, meet that recommends career candidates expertiseand qualifications general at the shareholders’ meeting. Directors’ wage limit is also determined deliberation through at the general shareholders’ meeting in accordance with Commercial the our articles of Act and association. Remuneration The Committee fairness the to secure of the functions performance for evaluation executives’ index long-term remuneration policy incentives. and RemunerationThe Committee is composed four directors external of three executive and directors to establish system a for fair performance to manage the evaluation and remunerationsystem of executives.

8 2016 93.8%

8 2015 93.8%

Under the principle of transparent and responsible management, striving and is CJ principleof transparent the continuously Under to fulfill governance, social responsibilities structure. Based advanced the on a healthy build governance and a “Global as Great Company” with our stakeholderswe will establishment the advance through of a responsible management system. CSV GOVERNANCE STRUCTURE GOVERNANCE CSV 7 2014 64.8% BOD OPERATION STATUS OPERATION BOD CJ is striving to set a responsible management of the improvesystem. independence the To decision transparent ensure processes, BOD and it is comprised four and of three executives directors.outside Committee, Audit The External Director Recommendation Committee Remuneration Committeeand are operated in committee, each BOD; through the we appoint resolvedirectors matters and the concerning BOD, shareholders’ executive meeting and performance evaluation. Committee Audit The External Director and Recommendation Committee are entirely composed of outside the of directorsindependence the to secure BOD. ORGANIZATION AND ROLE ORGANIZATION OF DIRECTORS OF THE BOARD Category of BOD MeetingsNo. rate Attendance directorsof outside CJ CSV MANAGEMENT REPRESENTATIVE CSV PROJECTS CSV MANAGEMENT OF AFFILIATES APPENDIX

02

CJ CSV Management aims for shared 2016 CJ CSV REPORT growth of company and society by creating CJ CSV social value in all business areas.

MANAGEMENT CJ strives to achieve the goal of “Great CJ” by strengthening long-term business competitiveness and continuously creating value shared with society based on the CSV Management system.

CSV MANAGEMENT 18 ETHICAL MANAGEMENT 20 SAFETY MANAGEMENT 22 ENVIRONMENTAL MANAGEMENT 28 SOCIAL RESPONSIBILITY 30 CSV MATERIALITY ASSESSMENT 34 2016 CJ CSV REPORT

Safety Management strategiesCSV resource and Aimed Values APPENDIX to secure sustainabilityto secure ManagementCSV Advisory provides Board” Planning Team and CSV and Team Planning CSV CJ Group’s establish Team serve allocationgroup at the level and plans a controlas tower over affiliates’ the CSV and exclusive The projects. social contribution CSV teams affiliates of CJ’s nine carry and CSV out social activities contribution in their respective business while areas, CJ Welfare the Foundation CJ’s sharing put CJ Cultural the Foundation and philosophy by fulfilling into action their missions. “CSV ManagementThe Committee,” highest the “CJ Group the CSV decision-making body and CSV Committee,”consultative a body for CSV make key decisions.executives In addition, the “ CSV CJ Group’s on feedback evaluation and strategies performances. and CSV ORGANIZATION and society and promote growth company society and and

Ethical ManagementEthical COMPLIANCE Foster industrial promote an ecosystem shared growth of coexistence and Endeavor into nation’s the Endeavor food future industries nation to the that contribute Initiate systematic social in contribution isolated CJ’s competencies areas based on CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 19 CSV CJ training to all executives and CSV training and to all executives Legal Compliance CSV programs that are best suited to Sharing Management Creative Management Win-win Management CJ will commit to CSV that leverages CJ’s strengths in areas of utmost need. All CJ members fulfill discover and will help youth their dreams. support and CJ will creation lead the of jobs for actively senior those women disadvantaged citizens. in employment, and youth, as such CJ will foster business beneficial ecosystem fair a mutually the through division of roles with partners. CJ will “Business practice Patriotism” in global the community countries within to societies by contributing company’s the and business territory. aimsCSV for growth shared with society Awareness and Practice at CJ” in order to Practice and CSV Awareness CJ CSV PLEDGE CJ CSV MANAGEMENT SYSTEM CJ CSV MANAGEMENT CSV BUSINESS CJ all our through business activities. a Through creative diversification createdhave we process, to industrial contributed a new ecosystem and national growth. economic Moreover, we seek to create positive new valuesfor countries and local communities within our business territory. We developed a CSV strategy that is linked mid-to the to long-term business strategies affiliate. of each a In addition, we reached CSV management on consensus by providing intensive “CSV employees. In addition, we conducted Management Assessment” a survey on and “ establish affiliate. environmentthe of each One, One, One, One, One, REPRESENTATIVE CSV PROJECTS REPRESENTATIVE ManagementCSV CSV MANAGEMENT CSV management by focusing on CSR CSV management CSR on by focusing CJ BACKGROUND in Business 1953 based on CJ was founded Patriotism, chairman philosophy the of founding believedHe company a that Byung-chul. Lee, togrowth national economic contribute should better living for achieve conditions Korean and global communitypeople business through and prosperity. establishment the Since of our first CSR (corporatededicated social responsibility) foundation prepared the in 1999, we have unit for management ethical management and including social In November contribution. 2013, which marked anniversary, 60th CJ’s announced we our commitment to “CSV (Creating Shared Management,” first the Value) in company establishedKorea to so, do and a social value implementation system spirit the based on of Business Patriotism. CJ CSV MANAGEMENT our proclamation, CSV Since been we have “CJ CSV Management” on by taking practicing growth producing challengesnumerous and withsociety. CJ 2016 The represents our goal to grow with society by creating positive social our value through core business strong philosophy of CSR and competencies. In other words, CJ, in practicing CSV management, aims in to way lead the creating social value by resolving social issues, as we promote sharing creation, shared growth and with basis society the on of our compliance management, safetymanagement ethical and management. authentic In order to achieve CSV management, we will develop existing CSR effortswork with stakeholders and to creatively alleviate social issues with our core business capabilities. to ultimately plan We become a global lifestyle that makes company world the a better place. 18 18 CSV Management aims at creating business social activities. value through It is promoted basis the on of CJ’s responsible management system to promote management, ethical safety management, environmental management social contribution. and CJ CSV MANAGEMENT CSV 2016 CJ CSV REPORT 2016 97.1% 97.5% 99.3% 98.5% 2015 95.2% 89.5% 85.7% 90.2% - 2014 94.4% 88.9% 61.9% APPENDIX CJ O Shopping legal on Education affairs fair (2015-2016) trading and core on valuesOnline education “Healthy training CJ” Consumer the Act on the on Protection inEducation Electronic Commerce, Advertising Fair Act on Etc., the Labeling and and Retail and in Large Fair Franchise Act on the Transactions Business (yearly) review (quarterly) broadcasting on Education CJ OliveNetworks in Large Fair Franchise Act on the Transactions on Education Retail Businessand (yearly) Legal targeting education employees new necessary) (as Improper the on SolicitationEducation Graft Act targeting and department managers / sales personnel (2016) Integrity training for department managers managers / project (5-7 times / year) Information security training for system operators (yearly) personal on Education information protection for personal information (yearly) handlers CJ E&M personal on Education information protection (yearly) prevention of copyright on Education infringement (2015) Investment Capital Services Financial and the on Education Markets Act (in relation to market (2015) order disturbance) prevention of publicity on Education right infringement copyright on Education protection / infringement prevention (2016) Arts Popular Industry the Culture on Education and Development Act (2016) of citizens in audition programs (2016) appearance on Education communications secret protection (2016) on Education Improper the on SolicitationEducation Graft Act (2016) and CJ CGV Internal training fair on advertising labeling and system (2015) Improper the on SolicitationEducation Graft Act (2016) and Legal for education employees new (2016) CJ헬로비전 integrity on Education (yearly) value practice Information security (yearly) education Act Fair Regulation Trade Monopoly the on Education and a year) ( Improper the on SolicitationEducation Graft Act (2016) and CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 21 EDUCATION STATUS ON ETHICAL MANAGEMENT (TARGETING KEY AFFILIATES) (TARGETING ON ETHICAL MANAGEMENT STATUS EDUCATION (2015-2016) BY AFFILIATE ON ETHICS TRAINING STATUS Category Completion rate of fair education trade Completion rate of integrity education Completion rate of information security education Completion rate of sexual harassment prevention education CJ CheilJedang Improper the on SolicitationEducation Graft Act (2016) and Act in Subcontracting Fair the on Transactions Education (2015-2016) evaluation on systemEducation of shared growth agreement (2015-2016) copyright on Education (2015-2016) unfair subsidizing (2015) activity on Education Act (2016) Transactions Fair the on Agency Education CJ Freshway Act and Fair Regulation Trade Monopoly the on Education and Act (yearly) in Subcontracting Fairthe Transactions integrity on Education (yearly) value practice Information security (yearly) education management compliance on for Education employees new (2016) Improper the on SolicitationEducation Graft Act (2016) and Act (2016) Transactions Fair the on Agency Education CJ Foodville (yearly) compliance on Education Improper the on SolicitationEducation Graft Act (yearly) and intellectual on propertyEducation (yearly) (yearly) practice ethical on Education Act targeting Labor managers the on Standards Education of stores (four franchise times and chain / month) information on Education protection targeting experienced employees (yearly) food on hygieneEducation (weekly) safety (monthly) occupational on Education CJ Logistics Online legal in relation education to U.S. Corruption the Prevention Act (2016) Improper the on SolicitationEducation Graft Act (2016) and fair on Education targeting trading (2016) executives Unfair the on CompetitionEducation Trade Prevention and Protection Act (2016) Secret Act (2016) Transactions Fair the on Agency Education internal on managementEducation ethical (2016) safe on Education driving (2016) health safety (yearly) and occupational on Education REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ INTERNALIZATION OF ETHICAL MANAGEMENT regulations a clear of ethics, provides CJ code guidelines affiliate forand each together with checklists for specific and situations.manuals In order to raise employees’ awareness business on internalize and managementethics ethical group-wide provide we organize and practices, legal on education anti-corruption, compliance, fair trade, information integrity. security and training also tailoredWe ethics provide to each affiliate basis. ongoing an on ETHICAL MANAGEMENT OF PARTNERS CJ createsindustrial an ecosystem for shared promotinggrowth win- supporting by and wingrowth with partners. While reinforcing related the monitoring guidelines on and affiliateeach effort in an to establish fair we are practices, trading transparent and managementstrengthening the to achieve reports growthshared receiving by violations on regulations ethical legalof from partners. and CJ Logistics and fully In 2016, CJ CheilJedang in order to contract revised standard the fair guarantee with trade for As agencies. Olive of CJ OliveNetworks, we promoted Young operational internal improvement by conducting monitoring with to compliance ensure Act the and inLarge Fair Franchise on Transactions Retail Business. ETHICAL MANAGEMENT ETHICAL MANAGEMENT REPORTING CHANNEL CJ operates Cyber the Department Audit to people report can unfairwhich business on demands well as unreasonable as practices corruption position. using and one’s The Cyber Department Audit reports receives via website, the as e-mail, such variouschannels, in-person visit. and fax, For phone reported follow-up measuresincidents, after are taken investigation to procedures. the The according reportersidentity and of counselees well as as report are kept and counsel of the contents the confidential to protection against ensure any possible disadvantages. 20 ETHICAL MANAGEMENT ETHICAL MANAGEMENT OF AFFILIATES CJ’s affiliates improve their upon continuously characteristics to the according ethics of codes theirof respective businesses so to prevent as risksethical course in the occurring of operations by employees. We also strengthen fair business relationships with ourpartners, in of internaladdition to improving standard the management ethical supplementingby the managementethical checklists. guidelines and CJ is also and preventing ethical thoroughly compliance-related risks preemptively by each to legal concerning responding changes Improper the as Solicitationbusiness area, such Graft Regulation Monopoly Act, the and and Transactions Fair the Agency Act and Fair Trade Act. CJ is striving to corporate create a transparent culture by internalizing management. ethical We are systematically to various legal responding risks establishing by by control compliance standards affiliateeach internally with compliance related the inspecting and laws in our business performances. ETHICAL MANAGEMENT ETHICAL CJ has setCJ has a group-level management ethical system at lead. with Compliance the Team management ethical The organizations each of affiliate overall the activities and were expanded strengthened reflectingby each been have business characteristics. In 2016, we provided managementethical guidelines, codes of ethics related training to employees, improvedand and internal management ethical organizations and processes Improper the to enforce Solicitation Graft Act. In lineand with enforcement the of Act, we inspected Transactions Fairthe Agency statusthe internal of for transactions affiliates establishedand improvement Moreover, plans. management our ethical we are enhancing overseas by providing and transaction standards investment-related guidelines compliance and strengthening control compliance education targeting employees. ESTABLISHMENT ESTABLISHMENT OF A GROUP-LEVEL ETHICAL SYSTEM MANAGEMENT 2016 CJ CSV REPORT 12 77 124 2016 12 78 134 2015 6 61 78 2014 APPENDIX DECISION-MAKING PERFORMANCE ON CJ SAFETY DAY The SafetyThe Management Department operates a five-step safety management system comprised of awareness, improvement, evaluation and prevention, response action in order to support systematic activities all of safety managementorganizations within the competencies are All resources and CJ Group. highest the level in of achieving concentrated safetymanagement. addition,In systematic efforts to made establish are safety-first a culture. 10 RISKS TOP IMPROVING (STEP 1: AWARENESS) Safety starts activity with and preventing risks. CJ minimizesreducing possibility the of selecting by top risks 10 the and accidents striving for improvement in relation to the selected risks at all times. 152 In 2016, among fortasks drawn top 10 risks, the we completed improvement malfunctions, broadcasting on preventionof large-scale casualties inmulti-use facilities prevention of mass food poisoning. and HOLDING CJ SAFETY DAY (STEP 2: IMPROVEMENT) safety-first a build To culture, operate we a occasion, the “CJ Safety Through monthly Day.” willstrong CEO’s for safety management is to allspread employees. CEOs of In addition, the affiliateeach problems in out work sites check makein person, investment and decisions to eliminatesafety the risks. SafetyCJ is CJ’s Day CEO safety management been It has activity. performed 30 times until 2016. Category of meetingsNo. held CEOs of attending No. CEO participation rate ESTABLISHMENT OF SAFETY ESTABLISHMENT SYSTEM MANAGEMENT Training Outside AdvisoryOutside Developing a risk CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV Information Security FireSamsung & Marine Global Loss Insurance Control Center (GLCC) GlobalDiagnosis EHS Food Safety Advisory Group Korea Chief Information Security Officers Council Protection Advisory Group Risk Response System - - Sustainability Management - - - - Personal Information 23 CJ Safety Day Establish emergency an response minimizesystem and damage emergencyLearn through evacuation firefightingand drills Experts’ network (speedy professional cause analysis) advice, expertStrengthen capacity certification,(safety academy, external courses) Step 3. Prevention - - - - Step 2. Improvement CJ Safety Design Review (SDR) improve risks the on in field management” “A preventative system to control diffusion the of makes investment decisions and in order to check existing risks in case new the of business expansion, “An activity to“An activity center CEO (management) the on that business commencement or store construction” / plant Safety TFT Innovation Execution Power Cast (broadcasting) CJ CGV / CJ Foodville (multi-use facility) (large-scale performance) IDC) (Songdo Bio Information Security Chemical / Hazardous Reduction Odor Food Poisoning Prevention Food Safety - - - CJ E&M - Disaster Recovery - Reinforcement - - Enhancing the the Enhancing REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Safety Management System Step 5. Evaluation Improve managementImprove of CJ’s top 10 priority risks Systematically preliminary execute safety design review (SDR) mid-Manage to long-term infrastructure investment improveAssess global top-level and safety management system - - - - Safety Management Commission Roles of CJ Safety Management Control Tower Build a safety-first CJ Safety the Management culture by practicing Policy Experts’ Consultative Body Electrical Safety Experts for FoodGlobal Talks Safety Food Safety (FSA) Academy Inside Information Leak - - Application Experts - - - Prevention Prevention - Hacking Advancement - Personal Information Protection CSV MANAGEMENT CSV Mindset Establishing a Industrial Safety Safety-first Culture Establish emergency drills an response system by preparing emergency conducting response scenarios and Top 10 Risks Top Upgrade the CJ Group’s SafetyUpgrade CJ Group’s Management the System by establishing a safety infrastructure organization and Step 1. Awareness Instill a safety-first management CJ Safety (monthly), Day CEO’s field activities Committee,Hold CJ Group operate experts’ an consultative body Safety training for / new employee,experienced web training, promotion of safety cases Step 4. Response Action - philosophy - - - “An activity to“An activity diagnose safety the management system a regular to on promote basis sustainable improvement” and Swift Response, Damage Minimization CJ Group’s CommitteeCJ Group’s in order to minimize damages caused by accidents” promote extensive improvement lower risks” the and “An activity to to“An activity select key risks prevented and to be Industrial Safety Committee Food Safety Committee Accident InvestigationAccident Drill 248, Emergency Evacuation “An activity to“An activity establish emergency an response system SAFETY MANAGEMENT OPERATING SYSTEM SAFETY OPERATING MANAGEMENT CJ MISSION, ROLE AND RESPONSIBILITY SAFETY OF CJ DEPARTMENT MANAGEMENT MISSION R & R BODY SAFETY CONSULTATIVE MANAGEMENT - - - Information Security Committee - Environment Committee EXECUTING ORGANIZATION EXECUTING ORGANIZATION OF SAFETY MANAGEMENT Centering Safety on ManagementDepartment, safety CJ’s the management control tower, CJ isseeking toestablish global-standard, a safety-first comprehensive culture through management safety of the management system, implemented affiliates. by individual Since Safety2015, the Management Commission with held key management been the has of affiliate each of CEOs the and CJ to examine make decisions safety,activities on the and informationenvironmental and infrastructure investments.Also, meetings monthly the at of safety the management’s consultative body (Industrial Safety, Information Food Safety and SecurityCommittees), informationshare we make discussion to implementand safety CJ’s management system, policy prevention and management risk scenarios. system handling and safety The management organizationsof CJ affiliates and Group from nine increased have in of personnel 2014 to number 24 in 2016. The from alsohas 192 to 317. increased 24 67 71 179 2016 9 11 39 142 2014 22 Industrial safety Food safety Information security the safetythe of our customers and employeesand is top priority the safetyCreate culture ONLYONE where an Constantly identify and remove safety identifyConstantly risks and site. on share values support and continuous Provide with partners to help them comply with CJ’s safety policy. Routinize safety rules and principles through training and drills. safetyRoutinize principles training and through rules and Faithfully comply with social safety legal standards. and

SAFETY MANAGEMENT ORGANIZATION SAFETY ORGANIZATION MANAGEMENT AND PERSONNEL 4 3 Category Organization of organizations) (No. Personnel of people)(No. CJ SAFETY POLICY MANAGEMENT 1 2 With commitment the safety to ‘Creating culture ONLYONE where safety the an of our customers employees and is top priority,’ CJ is utmost the efforts dedicating to establishing overall the global-level management across safety activities. standards SAFETY MANAGEMENT SAFETY POLICY MANAGEMENT traditional the social responsibility beyond Going pollutants, the of minimizing and accidents CJ’s safety management policy our reflects commitment to CSV (creating shared value), the promoting trust securing public of means and mid- accomplish CJ Group’s shared growth. To to long-term strategy, “GCP2020,” CJ devised a mid- to long-term master for plan safety management covering industrial safety to food informationsafety and security. the Under master we are making plan, efforts to secure of safetya global competitiveness standard all managementacross activities. SAFETY MANAGEMENT EXECUTION SYSTEM 2016 CJ CSV REPORT APPENDIX OPERATING INTEGRATED RISK INTEGRATED OPERATING RESPONSE MANUAL ACTION) (STEP 4: RESPONSE isCJ operating group-level a risk response definition the that includes of risk, a riskmanual a cooperationresponse scheme and system with departments. relevant the All business must immediatelyunits to the report accidents Safety Management Department regardless of severity, Risk Management and Committee is according accidents the toaddress convened to severity the level. In addition, for thorough swift cause analysis and consulting,internal and external safety-related experts’ networks are updated quarterly.organized and EXECUTING EMERGENCY DRILL (STEP 4: RESPONSE ACTION) In order to improve safety the awareness of in taken to be actions employees routinize and executes emergency, and case of an CJ plans drillsemergency evacuation a quarterly on basis. organize training In addition, we continuously sessions to minimize damages caused risk by occurrence. FULL-TIME DIAGNOSIS OPERATING SYSTEM (STEP 5: EVALUATION) We diagnose safety the management system full-time a on basis, derive improvement tasks, optimize thus operating and the Each process. year,diagnosisa teamcomprised expertsof administers regular safety the diagnoses, and resultsreportedare forCEO to the reflection inour improvement accident an tasks. When follow-upoccurs, preventative diagnosis is external internalcarried expert through and out pools causes in the order of the to analyze preventative establish apply and and accident actions. (R1) Room Headquarters CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV (HR Support Division / CJ Group RiskCJ Group Response 25 CJ Group Emergency ControlCJ Group Safety Management Division) Response by holding company Response by holding Risk management departments Top management company Top of holding Emergency evacuation drillEmergency evacuation Swift sharing REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Emergency evacuation drillEmergency evacuation in key office buildings: drills twice drills unannounced twice, Preannounced Setting goal the to complete within six-minute the evacuation golden time sitesmanufacturing / logistics center Internal firefighting organization, firefighting drill simulation through situation actual of an of communicationInspection system with fire departments / government offices Response training personal on information (by affiliate): leakage incident CJ HelloVision, CJ Telenix CJ E&M and Simulation DDoS response and training for hacking (supervised IDC) by Songdo information Training DetailsTraining - - - Firefighting drills simulation through situation actual at of an - - - - Swift sharing (R3) Report situation on (R2) Response by each affiliate,Response by each swift sharing with company holding Response by operating Risk affiliate, Response Headquarters in each swift report to risk management department company of holding Operation Emergency Control of CJ Group Room, swift deployment of CJ Group reportRisk situation on Response Manual, to top the management Communication by SituationCJ Group Room in case of R1 accident occurrence Cycle Four times / year (quarterly) Semi-annually (*Compulsory in winter) / year Twice CSV MANAGEMENT CSV (R1 and R2) (R1 and each affiliate)each Risk Response Accident occurrence Accident Response by affiliate (Department in charge in each affiliateeach Emergency control room of headquarters of each affiliateheadquarters of each occurrence) Step 1 (in case of R3 accident occurrence) Step 2 (in case of R2 accident occurrence) Step 3 (in case of R1 accident Food Safety Committee EMERGENCY DRILL CJ RISK RESPONSE SYSTEM Category drillEmergency evacuation Firefighting drill (business premises / distribution centers) IDC) (Songdo Response training on information security accident New storesNew New products New Step 3. Prevention Reflection in design New riskNew prevention Completion inspection Construction inspection New structures and facilities structuresNew and Review of accident cases Review of accident Reflection in evaluation items CJ Safety Design Review (SDR) Prioritize victims accident (swift minimizing action, damage) Prompt reporting (immediately an upon within 2 hours) occurrence, accident Field investigation (after recovery, within Discover48 hours): cause a the through third party, effective countermeasures investigation, accident actual the (Open cause) the on focus by CEO, review (CJ Safety Field Day check decision-making): Implementing short- term reflecting decision action, in mid- to long-term infrastructure investment in same the industry accidents Analyze of different business types, derive implications take appropriate causes and Study measures (verification of valid measures) Investigate similar status within cases and follow-upCJ Group, measures on taken: priorities,Decide result the reflect in mid- to long-term infrastructure investment

Group accident investigation, accident Group horizontal actions deployment of handling 1 2 3 4 Suggestions from external accidents, establishment of countermeasures 1 2 3 CJ Logistics port activities making Decision- Short-term CJ Safety Day Existing risks Improvement investment plan field application Mid- to long-term GREAT CJ 2020 GREAT Expected future risks future Expected Reflection in infrastructure New risksNew produced to be The first Tuesday of each month firstThe of each Tuesday CEO on-site safety activities Improvement tasks implementation, Future for Safety Key Tasks Key Tasks prevention Innovation TFT Innovation Top 10 Risks Top CJ Safety Day Preemptive risk 24 Risk control / removal Top 10 Risks Top Existing risks Present Fire at multi-use facilities, large-scale casualties accident Broadcasting from / vesselHeavy vehicle accidents regulationloading violation External leakage of environmental / logistics)(manufacturing Large-scale fire accidents / key facilities)(manufacturing Mass food poisoning hazardous and Foreign substances in food products, substances originproduct mistake Mass customer information leakage CJ computer network loss Core internal information leakage Existing risks CJ Logistics Safety Day SAFETY DESIGN REVIEW SYSTEM Past CJ SAFETY DAY ACTIVITIES CJ SAFETY DAY Industrial safety 1 2 3 4 contaminants 5 Food safety 1 2 Information security 1 2 3 92 339 216 647 31.9 18.6 10.3 60.8 2016 2017 Plan (Unit: Cases) 102 292 115 509 2015 (Unit: 1 billion KRW) 8.3 18.4 18.3 45.0 2016 21 54 58 133 2014 8.7 7.0 43.6 27.9 2015 SAFETY EVALUATION SAFETY EVALUATION SAFETY INFRASTRUCTURE INVESTMENT SAFETY DESIGN REVIEW SYSTEM (STEP 3: PREVENTION) CJ is operating “CJ Safety Design Review” to businesses, new concerning accidents prevent services. CJ Safety and Design products, services and Review targets products CJ’s new in terms of store releases, openings, product websites. launching and construction plant services are and products that new We ensure after only and all review standards launched stage metcriteria of at each and are checked and construction signing,contract planning, completion 2014, CJ has Since of construction. performing been risk prevention management total a through of 1,289 safety design reviews. ENHANCING SAFETY INFRASTRUCTURE MANAGEMENT (STEP 2: IMPROVEMENT) CJ establishes mid- to long-term safety infrastructureinvestment for plans industrial safety, food information safety and security investment the executes to sectors, and approximately 50-60 billion KRW year. each improvedwe 2016, In safety the large-of scale facilities old buildings, reinforced and information enhanced IT infrastructure, and customersecurity and information management. For food safety, investment we increased to improve facilities basis the on Hazard of the Analysis Critical Control Point (HACCP). Category Industrial safety Food safety Information security released / approved Total Category Industrial safety Food safety Information security Total 2016 CJ CSV REPORT 3.0 99.3 2016 26,597 2.9 98.1 2015 25,317 APPENDIX INFORMATION SECURITY INFORMATION In order to safe ensure usage our of services by customers, criteria the strengthens CJ for customers’ personal information management, informationinspects on- security an on strivesgoing basis and to improve employees’ awareness. also We have established systematic procedures for customers’ personal information utilization extraction and to examine of personal appropriateness the information same requests. At the time, we administer managementthorough resultsthe on of information utilization disposal. When and consigning customer information processing to partner,a verify we partner’s the information keep We inmanagement advance. standard informationthe to our partners provided to minimuma for arrange them to dispose and informationof the immediately after they complete information to processing according purposethe information of the We also supply. administer field a regular on inspections basis status the of customerto check information processing. same At the time, improving by the customer information and process handling a secure spreading continuously and introducing system,code we are ensuring to minimize the leakagecustomers’of personal information. newsletters month, information containing Each to practices security new on threats and informationensure to out security are handed all employees. Moreover, we are preemptively security the IT services of new checking before them toour customers.providing also CJ administers to service according inspections with along regularchanges in order inspections, safe provide serviceto regardless continuously externalof internal changes. and 3.0 99.6 2014 24,962 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 27 Safety Principles. we set and practice the Top 10 Food Top the practice we set and CJ affiliates shall operate specific food safety practical guidelinesand the based on Food Safety“CJ Group Regulation.” of all its food products new brands, CJ shall launch after food safety risks are preemptively eliminated safety value isand maximized the through “CJ Safety Design Review System.” CJ shall start operation the of all food new service stores after securing food hygiene safety the through “CJ Safety Design Review System.” the apply and CJ shall accumulate “Partner Company Evaluation System” in selecting, managing partner companiesmaintaining and for food & food services. shall satisfyAll CJ food products the “CJ Food Safety Standards,” moreare stringent which national legal the than standards. systematic and training to continuous CJ shall conduct expertise the build of employees competency in and charge of food safety by operating the “CJ Food Safety Academy.” CJ shall regularly implement “CJ Food Safety Assessment” to create food the safety-first culture through habituation capacities of execution and enhancement service sites. and at production CJ shall regularly “CJ Food hold Safety Committee” meetings main food-safety decide to discuss and promotepolicies, better and communication between affiliates food the standardize in order to raise and safety levels. CJ shall laterally implement “CJ Food the Safety Regulation” strictly local regulations apply to secure and “Global Food Safety.” CJ shall fulfill its CSV mission the by providing of partners’infrastructure for enhancement food the safety-related capabilities by transferring and via training. techniques CJ, as a globalCJ, as lifestyle that creates company

safety-first culture by establishing food safety health, happiness and convenience, embeds the convenience, health, and happiness 1 2 3 4 5 6 7 8 9 10 infrastructure and system. To ultimately system. To infrastructure and promote GROUP-WIDE INFORMATION SECURITY TRAINING GROUP-WIDE INFORMATION customer’s shared growth safety with partners,and 전사 정보보안 교육 현황 Targets of staffNo. to subject training Completion rate per hour employeeTraining TOP 10 FOOD SAFETY PRINCIPLES TOP REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ OF IMPLEMENTATION SAFETY MANAGEMENT INDUSTRIAL SAFETY CJ strives a global to secure top-tier industrial safetysystem. Strike“Three The System” Out to workplaces, introduced stores been has and sites,construction a safety management and discipline established been has various through non-complying banning as measures, such partner ordering companies from tendering and operationan halt if fail they to meet CJ’s safety In particular, of large construction standards. facilitiesstores and CJ the must go through Safety Design business operation Review, and are signed when contracts only / construction expenses are reflected. and safety standards FOOD SAFETY safetyThe of all food new products is ensured foodCJ’s by brands manufactured with CJ Safety the Design Review System. Food safety levels are also raised with operation the System, Audit wasCJ of developed to which service with units assess and food production with compliance the beyond safety standards related laws. inspections We carry routine out with compliance food the on hygiene manual field reinforce inspection workplacesat and activities in summer food when hygiene is considered most important. Food CJ Group’s Safety Committee, discusses main which food safety-related policies, is regularly convened level the of foodto further safety. In enhance addition, we implement systematic training to improve food safety managers’ expertise and CJ Food through capacities Safety Academy. 8 courses completed by 220 employees (2015) Fostering professional lecturers by affiliate: 9 courses completed by 236 employees (2016) Fire safety education EXPANSION OF COMMUNICATION OF COMMUNICATION EXPANSION FOR SAFETY MANAGEMENT CJ is communication promoting both active externally internallyin order and to establish safety-firstthe culture. Every Wednesday, all employees cases the share safety- of safety study policies and and related accidents, regulations “Smart through Safety Meeting” before starting to work. are we addition, In promoting internalcontinuously safety activities broadcasting). (in-house CJ Channel the through Moreover, safety we introduce management affiliate of each practices videos by producing titled “Safety is Competitive Power,” and safety monthly newsletters sending by and safety-relatedspreading knowledge to improve employees’ safety awareness. alsoWe discuss safety the share issues and related information regular a on basis through SafetyCJ Group’s Committee. Training through Food through SafetyTraining (FSA) Academy Food SafetyCJ Group Curriculum / Professional Courses:- Basic / Advanced to 9 courses- Expansion ▶ 26 (targeting all employees) Training completedTraining by a total of 26,407 employees and CJ Group’s safety CJ Group’s management system:and policy and (food affiliates) Training completedTraining by a total of 9,292 employees Training completedTraining by a total of 26,999 employees Fire safety education SAFETY EDUCATION SAFETY EDUCATION AND TRAINING strengthened safetyCJ has and education training in order to effective ensure safety response. We provide prevention and accident industrialonline on education safety, food informationsafety and security to all employees. CJ HumanVille, In addition, through we provide a safety programsgroup education including management safety introductory course and trainingguide for employees sent to being overseas business sites. Industrial safety, food informationsafety and security courses are in training the curriculum for promotedincluded employees, safety training experience has and expertise the to increase of expanded been safety safety managers officers and at multi- purpose facilities. We are striving the to secure best safetymanagement system basis the on of ourintegrated risk response system securingby organizing professional resources and human systematic training programs.

Industrial safety necessity of safety and management concept the on - Education

Food safety food safety CJ Group’s system: on - Education philosophy and Online (web) education Information security in Chinese of education - Expansion (2015): training key safety on management items by senior employees overseas business sites terrorism while working abroad Industrial safety managers’ workshop EXPANSION OF SAFETY EDUCATION MANAGEMENT EXPANSION Group training (CJ HumanVille)Group Courses for employees experienced - Safety management policies, field cases information on - Education security regulations Courses for employees new - Camp training for with compliance safety rules, - Safety management policy, information security guidelines, etc. - Safety training guide prior employees to sending to - Safety mindset, for precautions infectious diseases / CJ SAFETY STANDARD CJ SAFETY STANDARD In line Safety- with pursuit the ONLYONE of an first Culture, established CJ has “CJ Safety the In legal that exceeds the standards. Standard” particular, we are striving to establish safety as our corporate culture by setting necessary the criteria of industrial for safety, each food safety informationand security. to develop We plan a safety as Safety CJ for model the Standard for also our a foundation industry as the and “Great Global the as CJ.” advancement ESTABLISHING ESTABLISHING A SAFETY-FIRST CULTURE 2016 CJ CSV REPORT 0.66 2016 1,557 84,276 336,734 195,574 616,584 2020 (goal) (Unit: tonCO₂eq) 1.23 2,814 2017 (goal) 2015 75,964 305,905 200,862 582,731 1.25 2016 3,258 APPENDIX 1.31 2015 3,035 ZEROING EXTERNAL LEAKAGE OF ZEROING EXTERNAL PROCESS WATER CHEMICALS AND process chemicalof and for prepare incidents To water leakage, leakage cameras surveillance and sensors for monitoring 24-hour been have sites are managed at manufacturing installed and subject to risk the of leakage. of an event In the emergency, person the in charge is immediately notified, situation the through is and handled site. of the automatican shutdown Therefore, environmental the risks caused by external leakage are kept to minimum. A control service is operated with installation the of surveillance cameras at 73 stations mainly of 14 plants, sites,manufacturing while wastewater leakage monitoring systems (sensors) were installed at 31 stations in In 2016, the 2015. 10 plants of monitoringsystem was installed in ten additional coverage the sites, thus manufacturing and to logistics service expanded been has and of management scope areas. In 2017, the will from external facilities expanded be to inside In line plants. with this, manufacturing the we will establish installation the criteria for leakage detection sensors, safety valves and leaked water collection system. In addition, to strengthencapabilities, our emergency handling we will chemical introduce management TF and related the training programs. advance thus 2014 71,640 561,995 287,315 203,040 1.30 2014 2,901 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 29 COMPANIES GHG EMISSIONS OF CONTROL TARGET AND REDUCTION GOAL USAGE WATER by promoting the “Eco-driving” campaign and by promoting “Eco-driving” campaign the and carrying investments out for replacement the disposal oldof and vehicles. LogisticsCJ is also strengthening energy consumption monitoring operating internal an by developing and management system for energy consumption emission GHG and calculation. REDUCTION USAGE WATER setCJ has a goal to halve water the waterconsumption analyzing by 2020 through sites. consumption flow at manufacturing To goal, the we are striving to reduce achieve water year through consumption by 10% each installing water saving recycling of devices, boiler cooling water activating water and and reusing system.reclamation and CHEMICALS CONTROL TOXIC safety ensure external against To internal and risks chemicals, caused useby hazardous of established has CJ chemical a life-cycle managementsystem covering from purchase to use, storage disposal of chemicals. and We establishedhave a system of for purchase chemicalsnew following safety verification department. CJ Blossomhandling by the Park, integratedan center, R&D developed has a management program for chemical sorting to associated risks, wellas foras according user management consumption amount and and chemical disposal. result The program the of operation CJ Group. will shared across be Affiliates CJ CheilJedang CJ Logistics CJ CGV Total Targets Wastewater discharge (1,000㎥) Water consumption (Basic unit) REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ GREEN MANAGEMENT ACTION CJ is managing pollutant discharge and prevention facilities with a goal to reduce emissions regulation to “50% of the down level” affiliate,by each strivingto and implement mid- to long-term renewable energy saving and external prevent leakageenergy To sources. of we operatecontaminants, control a 24-hour system intelligent by using an monitoring system sensors. so, By doing we detect (CCTVs) and minimize and in advance accidents prevent and environmental risks re- by collecting and processing As for contaminants. of source the emission the odors, analyze we characteristics tominimize odors of inour occurrence the promote continuous processes and production improvement activities. With accumulated the environmental management technologies, is performing Group CJ leadera as in global environmental management establishing by response strategies aligned with local policies at global business sites. GHG REDUCTION SAVING AND ENERGY subject to ETS (Emission the With CJ CheilJedang CJ Logistics Scheme) and Trading subject to Management Target the for GHG Emission we are administering Reduction, emissionGHG control allocated with an emission reduction goal. In 2016, CJ CGV was selected newly a as Management subject to Target company the for GHG Emission Accordingly, Reduction. set has a mid- to long-term CheilJedang CJ strategy performed for and GHG reduction activities. GHG reduction With a continuous direct GHG emissionsgoal to reduce to down is performing30% by 2020, CJ CheilJedang GHG emission changing as activities, reduction such facilitiesthe to those of high-efficiency energy renewable use the and of new expanding and energyLogisticsCJ sources. is performing GHG emissionactivities reduction in logistics Achieve ‘zero’ leakage on Achieve of other substances chemicals and managementStrengthen of odor Establish systematic response to supportingissues system and management guidelines customized country to each Establish systematic response to supporting global issues and

Environmental Risk Minimization - - sources - of Global Standardization Environmental Management - Provide environmental - system emission target concentration capability of membersEnhance preemptiveTake measures for Control recycling of resources Set up energy control network Objectives of Environment Management management of - Enhance - of SustainabilityEnhancement Management - GHG - - 28 Realize global top-tier green management Prior elimination of environmental risks Establishment of a sustainable environmental management system GREEN MANAGEMENT VISION AND STRATEGY VISION AND STRATEGY GREEN MANAGEMENT VISION GOAL STRATEGY In order to minimize to goal the of respond actively environmental the impact from our business and greenhouse gas emissions,reducing CJ is promoting green company-wide vision management the under to realize “global top-tiergreen management.” ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL Environmentalissues caused climateby are a challenge forchange international the community. In December 2015, 195 developed to countries developing participate declared and greenhouse gas emissionsinreducing through “ the Climate Accordingly, Accord.” Change for demand a corporatethe response is ever- established has At this, CJ Group increasing. visionthe to realize “global top-tier green implementedmanagement” and four main strategies witha goal toremove environmental to develop a sustainable and risks in advance environmental management system. STRATEGY FOR FOR STRATEGY GREEN MANAGEMENT 2016 CJ CSV REPORT 5.9 2016 59,693 (Unit: Hours) 6.7 2015 51,000 11 2014 82,000 APPENDIX CJ Employees’ Activity Volunteer VOLUNTEER SERVICE HOURS VOLUNTEER Employees’ Activity Volunteer social contribution Based Group’s CJ on to business principles connection of “continuity, employee participation,” and executive CJ and employees and engageexecutives in a variety of volunteer activities to share their time and talent. In addition to volunteering at after- centersschool with CJ Donors Camp, each affiliate participates ina variety of activities that leverage their meet business characteristics and of local communities. needs the Food Support Project Bank Food isBank distribution a system that establishes a social safety by providing net daily supplies foodsdonated from and food to low- individuals companies and production member active an groups. been income has CJ of Food in 1998. In Bank launch the since other CJ Group addition to CJ CheilJedang, affiliates various donating products been have services. donated Welfare CJ and Foundation food to approximately equivalent KRW 27.8 billion from foundation 2005 to The 2016. also foodhas provided / food ingredients, living itemsmedical supplies and to victims and volunteers following disaster accident. and Category serviceVolunteer per hours employee volunteer serviceTotal hours CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV Money raisedMoney KRW 35,567,175 Facebook Participants through 41,149 31 Little Big Heroes SHARING PERFORMANCE IN 2016 Sharing Campaign easilyCJ pursues practiced be sharing that can such various through happily channels, and consumption, festivalsas broadcasting, and socialmedia. With “Little Big Heroes,” tvN a program,stories the we spread of sharing and campaigna raisedthrough to support donations activities the “Sharingof Heroes.” addition, In to help single a campaign Facebook through on mothers, we delivered 150 newborn starter kits boxes 270 of baby wipes baby wipes) (5,100 and to “With Mom,” a facility single helping parents. Moreover,new- a from “Give-Boutique,” to OnStyle, “Around on show donation concept tvN program a World inthe 80 Days,” to help childrenfrom after-school centers their enjoy first “Good trip Wife,” tvN to Seoul, and another for programgirls raised that funds set are to who leave foster homes, sharing the CJ is spreading documentary variousculture through TV shows, festivals. and Contributors 40,361 Donation amount KRW 1.821 billion REPRESENTATIVE CSV PROJECTS REPRESENTATIVE University Mentors Student 70 Mentees Youth 154 CSV MANAGEMENT CSV Dream-building CreativityDream-building School PERFORMANCE ON DREAM-BUILDING SCHOOL IN 2016 CREATIVITY Dream-building CreativityDream-building School CreativityDream-building is School a program designdevised youth to theirthe help future social skills. creativeby developing and CJ ideas CJ affiliates,Group’s CheilJedang, CJ including CJ CGV, Foodville, E&M and CJ CJ O Shopping, support creative so the that activities of youth explore can they their with future passion at cultural industrialsites actual cooking, of fashion film-makingbroadcasting, musical / music and theoretical the outside education production inclassrooms. Expertsfield, CJ from each employees working cultural at the industrial sites university majoring students and inthe related perform areas mentors as for six months nurture their dreams for youth help the the and Startingfuture. with 1st the Dream-building Creativityclass School in this2013, program carried four been timeshas out far. Over thus years, Creativitythe Dream-building School has people take a step helped a total of 654 young closer to their dreams. Celebrity Mentors 13 Employee Mentors 28 CJ Dream-building ProposalsDream-building 1,260 Donation amount KRW 3.5 billionApprox. PERFORMANCE ON AFTER-SCHOOL CENTER SUPPORT PROJECT IN 2016 Support to After-school Centers ProposalsCJ’s Dream-building Project was initiated with various a goal to provide opportunities educational tochildren from low- familiesincome the on stand so can they that same starting line their towards dreams. Dream- Proposals, are prepared by building which after-school at local teachers centers, cover supporteducational to programs aimed at physical their childrenhelping build mental and health well as cultural enjoy experiences. as Donors CJ 2016, In Camp worked total a on Proposals, are of 1,260 Dream-building which comprised of 315 proposals for educational support, 275 for mental health, 26 for physical health, 13 631 for cultural experiences and others. After-school Center for All 4,725 of children supportedNo. 82,708 30 Equal opportunity Equal Creating a culture all that provides children same the on opportunity towith stand an starting line Proposals Dream-building Project: Healthy growth Creating a culture that raises children who nurture dreams for future the Creativity Dream-building Project: School sharing Happy Creating everyone a culture in which participates in children’s sharing to protect dreams SharingProject: Campaign, volunteer Food activity, program Bank “Cultivating People, Building Nation” the CORE VALUES OF CJ DONORS CAMP OF CJ DONORS CORE VALUES Following the founding philosophy of “BusinessFollowing Patriotism” founding the “People First,” and CJ promotes and social activities contribution CJ Welfare the through Foundation CJ Culturalthe Foundation. SOCIAL RESPONSIBILITYSOCIAL CJ DONORS CAMP DonorsCJ Camp is Welfare CJ Foundation’s flagship social to project contribution support youth. healthythe growth children of and Starting with approximately contributors 3,000 first inthe 2005, CJ year itsof foundation, Donors Camp online developed has into an platformdonation participated by around 340,000 members of 2016. Pursuing as core the opportunity,values healthy of equal growth and sharing, CJ Donors Camphappy is taking the lead in “Cultivating people, Building nation.” the CJ WELFARE FOUNDATION CJ WELFARE Established CEO’s in the 2005 based on sharing philosophy to “stop poverty from being generationpassed next to the on due to lack opportunities,”of educational Welfare CJ the supports of dream-building the Foundation “CJ through youth underprivileged children and Donors Camp.” 2016 CJ CSV REPORT APPENDIX Culture Sharing Culture Sharing Programs culture sharing with those isCJ expanding limited have who to culture. Tune-up access Music Class is CJ’s culture sharing program implemented 2012 with since a goal to practice philosophy. social contribution the In Tune- isup Music Class, held in Seoul Dasom which serve musicians as 2012, Tune-up School since a week for give six lessons once and teachers guitar, musicalinstruments keyboard including Music drums. In 2013, we startedand Tune-up in juvenile probation and on Class for youth the correction centers in order to help them with talent emotional and building growth, character the development. also We have expanding been of thisscope program to foreign workers and marriage immigrants 2015. since in Ansan CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 33 CJ AZIT Gwangheungchang CULTURE SHARING CULTURE PROGRAMS CJ Azit AzitCJ offline is Cultural CJ Foundation’s platform where performing artists pursue can communicatecreative freely with activities and its in 2009, CJ Azit Since opening audience. the used a stage been as has Gwangheungchang for creators new developed Tune-up, by CJ’s Story-upStage-up programs. and In April 2016, with opened a performanceCJ Azit Daehangno a workshop for performinghall and art creators. is which With CJ Azit Gwangheungchang, designed for music performances, CJ Azit and is for which stageDaehangno, performances, we are supporting creative the activities of artists their creating market thus entry, and and a cultural ecosystem enabling to public the of cultural contents. range a wide enjoy REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Scenario pitching SUPPORTING PROGRAMS FOR STORYTELLERS Story-up Story-up is a program foster to discover and storytellersnew of Korea’s to future lead the . selected The creators are provided mentoring includes withwhich expert coaching, monitoring, together and with in assistance Story-7th the At pitching. investment,P.R. and up Contest in 2016, 462 scenarios were entered forcompetition. stricta Through judging sixprocess, documentary dramatic one film and film scenarios were selected. scenarios Of the selected this through program, 12 scenarios while entered contracts, a into production majority were evaluatedfavorably domesticat international filmand festivals. Film Makers’ Korea Young - China Short Film Festival been has 2014, CJ CulturalSince Foundation Film Makers’ Korea the Young - China holding Short Film Festival in China to discover and fosterfilm-making talents to cultural lead also to two countries and between exchange a creativebuild ecosystem for film industry. In third the 2016, festival was in held Beijing from film Novembermakers to24 where26 young for fromcompetition. countriestwo convened With 375 films entered for competition, the again greatfestival won popularity once shortfollowing films year. previous of that Ten rookie directors Korean by were produced they with pieces, and screened 30 prizewinning greatwon favor audience. of the CJ Stage-up SUPPORTING PROGRAMS FOR THE SUPPORTING PROGRAMS FOR THE INDUSTRY LIVE ENTERTAINMENT Stage-up Stage-up isa program to support and new talented theatrical creators musical and in the also performers the toindustry provide and staff withand opportunities for staging their In 2016, we discovered four productions. creators supported 11 performances through this program. supported 2010, CJ has Since a performances.52 totalcreators88 of and We to creatingcontribute a healthy ecosystem for liveentertainment creators the providing by and their performances with systematic support in market entry, creationcontent and in order to of all ages live enjoy can audiences that ensure entertainment culture. 32 Tune-up SUPPORTING PROGRAMS FOR MUSIC INDUSTRY Tune-up is program a to supportTune-up and new are experiencing who talented musicians difficulties in entering music industry, the so grow into can morethat they experienced competent In 2016, we musicians. and two existingselected four and teams new them with provided systematicand support theirtoward creative activities well as record as opportunities P.R., marketing production, and for performances CJ holds abroad. in Korea and the at a month once Day” LiveClub “Hongdae where a variety of CJ Azit Gwangheungchang performancesstaged. are alsoWe organize in an collaboration musicians with independent attempt base the for to widen non-mainstream culture. also CJ participated title a as sponsor in 27th “Yu Jae-ha Music the Contest with CJ” tofostering contributed and talented singer- songwriters. various we are dedicating As such, efforts to development the of popular music. CJ Music Scholarship CJ Music Scholarship is a global scholarship program that supports talented students pop music at overseasstudying colleges and universities. scholarships together We provide withopportunities for performances in Korea to from talented abroad music students and Berklee music collegesleading including abroad College received Music.of students 47 2016, In supported 2011, CJ has scholarship.the Since a total of 347 students. CJ AZIT Daehangno CJ CULTURAL FOUNDATION FOUNDATION CJ CULTURAL to develop hopes CJ Korea into cultural a powerhouse by nurturing cultural talents spirit the sharing under their success and has CJ Cultural Foundation of ONLYONE. diversity to the contributed cultural of the ecosystem support through forcontent new creators in live music, film entertainment. and culture “CJ Azit,” sharing through We practiced Music Class.” a performance“Tune-up hall and 2016 CJ CSV REPORT Business Impact Aspect Aspect Energy Saving Health Safety and Occupational Wastewater Waste Management and Transport Eco-friendly RightsHuman Education Due Diligence and ParticipationTransparent in Politics Supplier Rights Human Assessment EqualityGender in Wage Partner Assessment Labor Practice RightsHuman Complaint System Handling AssessmentSupplier Impact Social Areas in Local Purchase Supplier Environmental Assessment Investment Facilities in Eco-friendly and Technologies ComplaintLabor System Practice Handling LaborEradication of Forced Conserving Water Biodiversity Protection Environmental Complaint System Handling Rational Labor-Management Relationship APPENDIX Category Environment Labor Practice Environment Environment RightsHuman Society RightsHuman Labor Practice Labor Practice RightsHuman Society Economy Environment Environment Labor Practice RightsHuman Environment Environment Environment Labor Practice Rank Rank CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV Product Responsibility Product 35 Society Report Section Business Overview / Affiliate Performance ContributionSocial / CSV Core Businesses for (CSV project rural development in Vietnam, Better Life for Girls awareness improvement campaign) / Affiliate Performance ManagementEthical / Affiliate Performance / AffiliateCSR Indicators Performance ManagementEthical / CSV Core Businesses (Season’s Table, Companion) / AffiliateHappy Performance Safety Managemen t / Environmental Management / Affiliate Performance Safety Management / Affiliate Performance Affiliate Performance Business Overview / CSV Core Business (Senior Delivery) Parcel / Affiliate Performance ManagementEthical / Affiliate Performance ManagementEthical / Affiliate Performance Safety Management / Environmental Management / Affiliate Performance / AffiliateCSR Indicators Performance Business Overview / Affiliate Performance Environmental Management / Affiliate Performance / AffiliateCSR Indicators Performance Safety management ManagementEthical / Affiliate Performance Affiliate Performance Environmental Management / Affiliate Performance Safety Management Management / Ethical / Affiliate Performance Rights REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Labor PracticeHuman Labor PracticeHuman CSV MANAGEMENT CSV Aspect Aspect CreationEconomic Value Contribution Communities to Local Anti-corruption, Management Transparent Stable Welfare Employment and Win-win Cooperation and Fair Trade / Service Environmental Impact Product Management of CustomerGuarantee Health Safety and Information,Provision Product of Accurate Customer Satisfaction Economic ContributionIndirect Regulations Compliance with and Laws Social Compliance and with Laws Product-related Regulations Compliance with Environmental and Laws Regulations Opportunity Diversity Equal and Reasonable Market Position Sustainable Use Resource Fighting Discrimination Customer privacy Rights AssessmentHuman Impact in Work Sites Marketing communications GHG Reduction Training Employee and Education Environment Category Economy Society Society Labor Practice Society Environment ResponsibilityProduct ResponsibilityProduct Economy Society ResponsibilityProduct Environment Labor Practice Economy Environment RightsHuman ResponsibilityProduct RightsHuman ResponsibilityProduct Environment Labor Practice Economy Economy MATERIALITY ISSUE REPORTING MATERIALITY CJ MATRIX CJ CSV MATERIALITY Rank Stakeholder Interest MATERIALITY MATERIALITY ASSESSMENT RESULTS impact well as Based as our activities on and concerns, our stakeholders’ and expectations Materiality the Assessmentidentified 21 materiality value economic issues, include which creation, to contribution local communities, management, transparent anti-corruption and stable employment welfare, fair and trade, win- customer of win guarantee cooperation and safety. We publish this report towith share our stakeholders identified the material issues along with direction the the of CJ’s activitiesto handle performances. key activitiesissues and In and materialityaddition to Group’s the issues, we report performances CSV on affiliate each of materiality the through assessment of affiliates. 34 CSV teams of nine main affiliates company holding and Step 1 stageAt the of “collecting related issues,” CSV issues CJ Group’s were identified global in issue by reflecting the trends pool and sustainable business, identified CJ Group-related media through analysis. Step 2 “priorityAt the composed Team Force analysis” stage, Task the of to workshop issues discuss at the the convenes from drawn the first stage; moreover, we carry internal out risk management of businesses in the benchmarking analysis, media analysis and same industry to prioritize issues. the Step 3 stageAt the materiality of “drawing issues,” materiality issues of CJ CSV management were determined with consideration for stakeholders’ degree the our business of impact and on interests. By aligning CJ’s management philosophy with businesses in creating shared value, social values communication based on with business various and stakeholders.we seek to enhance Centeringissues the on derived materiality through test, we strive to share our management activities and performances with stakeholders. the MATERIALITY ASSESSMENT MATERIALITY To identify and transparently disclose transparently identify issues and To that matter stakeholders most to our business and a materialityin this report, we conducted assessment external to review our internal and initiativesassessment impact. The and process consists“collecting are of three steps, of which related issues,” “priority “drawing analysis” and of materiality affiliate issues” group at the and level. CSV MATERIALITY CSV MATERIALITY ASSESSMENT PROCESS CJ CSV MANAGEMENT REPRESENTATIVE CSV PROJECTS CSV MANAGEMENT OF AFFILIATES APPENDIX

03

On the basis of our core competencies,

REPRESENTATIVE we intend to solve various social issues in areas where 2016 CJ CSV REPORT CSV PROJECTS our interest is most needed.

FOR IMPLEMENTATION In particular, as a global corporate citizen, we are actively taking part in solving various challenges the international OF UN SDGs society faces, such as eradicating poverty, healthy living and well-being, quality job creation and quality education.

SDGs IMPLEMENTATION EFFORTS 38 NO POVERTY CSV PROJECT FOR RURAL DEVELOPMENT IN VIETNAM 40 GOOD HEALTH AND WELL-BEING SEASON’S TABLE 44 DECENT WORK AND ECONOMIC GROWTH HAPPY COMPANION 48 SENIOR PARCEL DELIVERY 52 QUALITY EDUCATION CAMPAIGN TO RAISE AWARENESS OF GIRLS’ EDUCATION 56 ZERO HUNGER ENVIRONMENT-FRIENDLY BIOTECHNOLOGY DEVELOPMENT 60 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 39 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Director Business Inclusive IFC of the Models Group, Masuoka Toshiya Director Business Inclusive IFC of the Models Group, 30 yearsMore in Private of experience than Sector Development Sustainable(Support Development) Business for Inclusive and IFC (International Finance Corporation):IFC (International Finance largest the a member global and development Group, institution Bank World of the on focused growththe of private sector in countries developing Toshiya Masuoka Toshiya - - * In your opinion, what role should global opinion, corporations what roleIn your should UN SDGs? like to in CJ play achieve helping Forfirst the time developed commona countries have history in the set and developing mankind, the of of development goals in form the of 17 Sustainable Development Goals(SDGs) to eradicate poverty, more to were SDGs environment, year by basic services, The 2030. the improve protect access and agreedUnited the at Nations summit from moved has agenda the 2017 by in September and 2015, governments, development in world, actors agencies, the including Many SDGs. of the “what” to “how” privatenon-governmental sector organizations, companies, looking and to work are now to ways the of SDGs. In this private context, achievement the towards sector companies a critical play role in the pursuit technological managerial, SDGs with of their resources. Global companies financial, Korean and positionedare uniquely to make significant with contributions three factors: 1) Korea’s experience own private through country in the sector-led developing growth; strategic 2) expand drive to invest and in growing the emerging 3) efforts markets; and by “early adopters” like CJ to seek opportunities to develop business global models issues that address “shared value” approaches. through evaluate CJ’s efforts performances you do How and implementation the on of SDGs (e.g. efforts performances and CJ’s Vietnamese based upon project)? a significant made CJ has stride in aligning its strategy withSDGs. It is the impressing that this annual report of various a mapping activities has companies already a to 17 SDGs. CJ has by CJ Group the of initiativesnumber set its which SDG ambitions into motion domestically overseas. In particular and following been I have closely Saemaul Vietnam the project with rural farmers chili peppers, producing project aligns the because Business with IFC’s Inclusive improving objectives poverty of reducing and people’s lives business models through that integrate to poor see the It is encouraging in value chains. CJ’s efforts to integrate rural farmers into after are taking hold its value chains overcoming so many of farmerschallenges capacity from building ranging to overcoming poor infrastructure. like else would Anything to you add? OverBusinesses past investing years, seven the been in has IFC Inclusive billionUS$1.5 annually integratewhich low people income the in in commercially is value chains giving viable them manner, opportunities toto improve becomescope a inhas Vietnam a one their the as lives.such projects CJ’s we look Business,true forward Inclusive to further and cooperation with CJ. SPECIAL INTERVIEWSPECIAL CJ CSV project for rural development in Vietnam Food Safety Growth Shared Bio Amino Acids feed development Sustainable Consumption - - Association - Season’s Table - Sustainability Management of SanitationDrinking Water and Facilities - Minewater Barcodrop Campaign - Low-carbon, high-efficiency - CJ Breeding Urban ForestUrban cultivation Food Safety Growth Shared CSV project for rural development in Vietnam Senior delivery parcel CJ-UNESCO Girls’ Education Bio Amino Acids CJ Returnship Program CJ-UNESCO Girls’ Education Fostering Sustainable Cities - Happy House - GlobalStrengthening Partnership - Happy Companion - Association - - - - Gender EqualityGender - - education for executives and and foreducation executives employees (fair integrity, trade, etc.) compliance, CGV Senior Staffs CGV Staffs with Disabilities CGV Barrier Free Movie Day CJ Cultural Foundation CGV, E&M Cinema to You CJ Foodville Academy CJ Baking Academy Film Class Making CGV Toto’s CJ Welfare Foundation CJ Cultural Foundation CJ-UNESCO Girls’ Education Promoting Peaceful & Promoting Peaceful Harmonious for Society Sustainable Development - Sustainability management Reducing InequalitiesReducing - CGV ARTHOUSE - - - - - Quality Education ------38 Shared Growth Academy Shared Growth the underprivilegedthe support project for Broadcasting & communications Broadcasting Mine Water Barcodrop feed development executives and employees and executives Low-sodium, diet menu forLow-sodium, diet menu development in Vietnam CSV project for rural

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Campaign Building Infrastructure, Social Promoting Sustainable Industrialization - - CJ Breeding - Conserving Ecosystem the on Land - Low-carbon, high-efficiency - Season’s Table

- Food Bank - CJ Breeding -

Healthy Life & Well-being - IMPLEMENTATION EFFORTS IMPLEMENTATION s Bio Amino Acids development in Vietnam CSV project for rural development in Vietnam CSV project for rural Food Safety Growth Shared Senior delivery parcel feed development 1 Company - 1 Product Shared Growth Academy Shared Growth SDGs are a common fulfilled must that goal entire be of the international the race human UN and by the society from 2016 to 2030. SDGs are comprised sustainable 169 challenges to achieve of 17 goals and inequality, eradication for the of poverty as only not world, and the such development in countries around also to climate quality to respond job creation.but growth economic CJ strives and change, to identify its growthnew opportunities core business within business CSV to the connect itsthrough value chain strategies to solvingcontribute thus social issues. with CJ’s CSV business SDGs, and covers 17 goals the SDGs. We willof the efforts to fulfill goals dedicate the we endeavor as to achieving global the challenges. SDG -

End to World Hunger, End Promotion of Sustainable Farming - Food Bank - CJ Breeding - Season’s Table -

Association - - - Minewater Barcodrop Campaign - CJ Breeding - KCON - Happy Companion - Conserving Underwater Resources for Sustainable Development - Low-carbon, high-efficiency - Sustainable Economic Growth Sustainable Economic Growth Work Decent and - Urban / Energy ForestUrban packaging Using eco-friendly Senior delivery parcel Energy Forest Project CSV project for rural development in Vietnam CJ Welfare Foundation Senior delivery parcel TOUS les JOURS Good Bread CJ Baking Academy Combating Climate Change - cultivation - - Ensuring to Access Sustainable Energy - Antipoverty - - - Food Bank - CJ Breeding - - Campaign - 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 41 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV NEXT STEP CJ isCJ implementing variety a efforts of villages’ the to secure sustainable after growth even expiration the official of operations in ‘rate with the to of poor a reduction less KOICA. We are expecting down 16% by 2019 households’ than this this project to also other project is regions to to completed. expand in CJ plans once Vietnam and run, long In the neighboring efforts, the countries. Asian Through Southeast we will of rural income the regions to help increase and competitive safe secure and continuously necessary agricultural food business. for products CJ CheilJedang’s CJ PROJECTCSV DEVELOPMENT RURAL FOR IN VIETNAM

HA / FARMHOUSES 42 Contract cultivationContract of chili peppers for chili pepper powder sale Selected “Noteworthy as Company to Innovative 2016” World the Change Established Customer Ngan Tam Satisfaction Cooperative Association Invited village leaders to Korea for training 12.5 - - of Farming Self-reliance Securing Villages - - KEY PERFORMANCE KEY PERFORMANCE contributes to Vietnam’s CJ CheilJedang agricultural poverty development and chili Korean eradication by supplying pepper transferringseedsand effective farming Vietnamese to the techniques farmers. Through this initiative, farmers are able a to secure in turn, CJ is able stable and source, income distribute reliable and to purchase agricultural Saemaeul Vietnam The produce. CSV Project is a differentiated as recognized global CSV model that enables win-win with Vietnamese farmers. forRecognized performance the CSV the of project for rural development in Vietnam, CJ was selected a “Noteworthyas Company Innovative Asian only World 2016,” the the to Change Magazine. by Fortune company, Agricultural salesproduce K-Water 40 40 Ninh Thuan Province Ninh Thuan water system project (including suitable (including crop seedcrop selection) Cooperation for irrigation / SOCIAL VALUE CREATION SOCIAL VALUE Farming technology transfer Saemaeul consulting sector cooperation Creates public-private innovative value shared through self-reliance of Vietnameseself-reliance farmers Establishes for higher foundation the incomes and

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- Yeungnam University Yeungnam Saemaeul Movement ODA Fund (agricultural development, infrastructure) project. By working project. CSV with in KOICA, various as stakeholders, such CSV business public-private cooperation Cooperation in cultivation KOICA Syngenta BUSINESS VALUE CREATION BUSINESS VALUE Builds a complete field of manufacturing, value chain distribution and sourcing Establishes in global the market CJ’s brand CSV BUSINESS MODEL FOR RURAL DEVELOPMENT IN VIETNAM CSV BUSINESS MODEL FOR RURAL DEVELOPMENT CJ CheilJedang is promoting processed the foodCJ CheilJedang material group’s the business as sourcing representative CSV MODEL support of farmers’ a potential as project is recognized the self-reliance, solution being to Vietnam’s rural development. This project is exemplary also an as recognized collaboration entities public various private which through model, and demonstrate their expertise. Syngenta, a global agribusiness, took part in region-specific the farming technology cooperation, K-Water, Korea’s the national water and service helped to company, water University pipes in village. the connect advisory an plays role In addition, Yeungnam itsbased on experiences with “Saemaeul the Movement.” Securing high-qualitySecuring ingredients is essentialfood business; for however, CJ CheilJedang’s riskssupply are rising agricultural decreasing due to the substitution the labor and force of chili pepper’s for cultivating alternate lands in Korea. crops Imported chili peppers are also subject to quality issues, thereby emphasizing to our need globally diversify Korean chili CSV business pepper of rural Vietam, Through sources. development in Ninh Thuan, assists of farmers self-reliance CJ CheilJedang the in impoverished by increasing areas their incomes, while simultaneously establishing Asian base for an globalization the of cuisineKorean with high-quality products. CSV CONTEXT - - NO POVERTY 2016 CJ CSV REPORT

SPECIAL INTERVIEW APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 43 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Deputy Mayor of Ninh Thuan Province, Vietnam Province, of Ninh Thuan Mayor Deputy Nam Quoc Tran 2016~Present: Deputy Mayor of Ninh Thuan Province, Vietnam Province, of Ninh Thuan 2016~Present: Mayor Deputy 2011~2016: Secretary-general, People’s CommitteeNinh Thuan Tran Quoc Nam Quoc Tran - - What was the background of starting rural the development in CSV project background What was the with CJ? Province Ninh Thuan is south-central in inhabitedLocated the part Ninh Vietnam, of Thuan approximately by 600,000 people. Agriculture is most the important population the 63% of industry in which in Ninh Thuan, workagricultural in the Regardless GDP. industry, Ninhof 34.9% such of Thuan’s providing low poor due to level income the been have growth our economic activity, rateeconomic and climate midstthe In natural environment and in of this Ninh we learned Thuan. conditions hardship, essential Korea’s “Saemaeul an be about for project would only not we thought Movement,” which also for other but government regions requestedNinh Thuan, in As our Vietnam. to provincial the Embassy in we were Vietnam, Korean to to CJ, a company effectively introduced deploy this project. Thereafter, we entered MOU for into “CSV project for the an rural development in Vietnam,” signed Village Ngan KOICA. Tam most of the 2 in one deprived Ninh in areas Son, CJ and by Ninh Thuan, was selected site. project the as Ninh Thuan, For efforts we made project, the raising on income the also residents’the awarenesslevel in and this village. the project, carried the successfully As we out theirneighboring to began interest. show provinces CSV project bringdid the village? to the What changes remarkable new Over about three years, to residents. the CSV project brought the changes In the village,residents the started have using farming machinery KOICA. with dynamic support from and CJ At first, it to use difficult hard the unfamiliar residents the found and farming taught by technique Korea’s agricultural experts; cultivated they for as however, years crops of couple a with of help the experts, agricultural the in level income village of the productivity increase to leading an increased, residents.of the Saemaeul In addition, the spirit (diligence, down cooperation) self-help and handed Saemaeulby the Movement experts residents’ strengthened the solidarity The self-reliance. and residents started performing various village, the activities cleaning as voluntarily, saving such money observed allat been not past. in had For the movies, all screening improving which of living the and village of the conditions residents, project also the carried remodeling village out of a kindergarten and elementary of the improved watercenter, surroundings As a result, and pipeline and school connection. life. more enriched a better residents enjoy the now and from CJ for expect development future the of Province What does Ninh Thuan community? local the further likeWe would development to achieve by closely cooperating with after CJ. Even project the is to finished, invest that CJ continue for in as agriculture, we hope chili such pepper cultivation and operationthe of a chili to neighboring pepper mill, also expanded villages. project be that the and Furthermore, starting relationships to build with opportunity, we hope this with an as project other companiesKorean in other areas (food, logistics, like E&M). I would to express my deepest appreciation great I efforts such to CJ people dedicated have Province. who development the on of Ninh Thuan willVietnam also get Korea between and closer and NinhThuan relationshipthe hope and CJ between you. Thank in future. the CJ CSV IMPACT CJ supported residents the of Ninh Thuan competencies to business build as Province partners by establishing first the local cooperative cooperative area. in The the methods transaction by implementingenhanced of small-scale in place co-purchasing direct a micro-credit provided service dealing, and agro-machinery It also an bank. by running forserved main chili the as window pepper cultivationcontract by signing with contracts communitythe farmers. further We reinforced water communityconnecting by self-reliance through cultivating land expanding pipes and irrigation repairs. May Since extension and cultivation scale2016, the been of contract has to 42 farms (12.5ha). expanded ENHANCING SELF-RELIANCE OF SELF-RELIANCE ENHANCING VILLAGES FARMING Establishing Saemaeul Farmers’ Organization for CSV project the Through rural development, are promoting KOICA and CJ CheilJedang sustainable development by reinforcing of villages. For this, we establishedindependence a Saemaeul Farmers’ Ngan Organization in Tam Villagedeveloped community a according and community requests. and to conditions local eightThe Saemaeul leaders completed the Saemaeul shared course education in Korea and farmsexperiences of visiting with advanced their community members. LivingImproving Standards improved living standards continuously has CJ of villages, refurbishment through as of the such villageprimary hall, kindergarten and and school, provision of a stable water for supply agricultural use. environment, school The household and limitednot hygiene, was improved to health and with restrooms, of new construction the water pavement. We also schoolyard and fountains water pipesconnected of 181 previously therefore improvedand households unconnected of village livingthe standards residents. 42 Saemaeul Education Pilot test 0.6ha (2 farms)on 4.1ha (21 farms) Scale-up test cultivationContract 12.5ha (33 farms) on Village Residents Cultivating Chili Peppers Before / After Construction of Village Kindergarten Hall and CHILI PEPPER CULTIVATION STATUS CHILI PEPPER CULTIVATION 2014 (1st year) year) 2015 (2nd year) 2016 (3rd Contract CultivationContract of Chili Pepper chili Korean By supplying pepper seeds, transferring purchasing farming and techniques farmers Province Ninhof Thuan produce the we established distribution lack who channels, of “production-processing- a value chain distribution-sales” ultimately and raised the of farmers.income we selected In 2014, a breed most profitable in Vietnamese farming pilot cultivation by conducting on conditions two farms. chili 2015, we purchased In peppers meeting that were our quality standards cultivationharvested an contract on through 2016, the May area of 4.1ha. Since extended At the scale of cultivation expanded. been has moment, cultivation contract for chili peppers is carried in 33 farms out with a combined area of 12.5ha. We make efforts unstrained in research product the development to enhance and diversifyquality and cultivable breeds by crop cultivating R&D Farm. other at the crops Improving AgriculturalImproving Productivity training and continuous We are providing sharing ourexpertise to improve farming the Since Province. of Ninh Thuan productivity experts 2014, May from CJ CheilJedang the R&D Center organizing monthly been have training sessions cultivation crop on for local support additional providing by residents and stationing local experts chili site. on Beyond pepper cultivation, we offered general the farming training compost on making skills and soil sterilization, on other education special and farming techniques locally advanced applicable agro-materialand same At the instructions. time, irrigation to were canals connected steep on farmlands terrains,individual and existingirrigation were repaired channels Furthermore, extended. a and we provided to usedcommunity be for space drying the organized a cooperativeharvested and crops association to initiate a sustainable system of co-sales by residents. and co-production MAIN ACTIVITIES INCOME INCREASING VILLAGE 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 45 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV NEXT STEP ‘Season’s Table’, a key brand of CJ Foodville, plans to expand the use the of CJ Foodville, of domestic to expand a key brand plans agricultural‘Season’s Table’, ingredients by increasing distribution by expanding farm increasing revenue to continue of stores We hope country. number the the across Season’s Market as (online / offline). such Moreover, effortschannels, to make plan we continuous to discover volume trading of ingredients and number utilized the increase ingredientsindigenous that are disappearing, in our and development. same the At menu time, strivingare we to stabilize profits farmers initial in the businessof for phase young our marketing support. expanding through CJ SEASON’S TABLE MENU ITEMS ON AVERAGE % 80 60 140 APPROX. APPROX. APPROX. APPROX. APPROX. Seasonal menu items menu Seasonal using local ingredients served at Season’s Table of employeesNo. per store Rate of female employees - - - KEY PERFORMANCE KEY PERFORMANCE agricultural local By incorporating ingredients items healthyin the menu offered our at we ‘Season’s Table’, restaurant franchise, strive to establish a strong profitable base for farmerslocal improve quality the of food and We identify domesticproducts. with crops the risk of disappearing due to low profitability and develop ingredients them the as for menu new items, in order to promote of productivity the cultivation the crops. farms of indigenous and 44 44 Consumer agricultural produce agricultural produce Reinforce and expand expand Reinforce and local seasonal ingredients Direct marketing for local seasonal food ingredients marketing channels formarketing local channels Expand the use the of domesticExpand Develop and serve dishesDevelop with and SOCIAL VALUE CREATION SOCIAL VALUE Provides healthy itemsProvides seasonal menu the disappearingthe agricultural produce Develops new distribution and sales channels for salesDevelops distribution new channels and Provides space for direct space salesProvides of agricultural products -

- - ONLINE OFFLINE SEASON’S TABLE and CJ Onmart websites)and (Season’s Market on CJ Mall(Season’s Market on (farmers market store) at the Korea cuisine family restaurant Operate / on Farmer Offline markets Supply food materialsSupply BUSINESS VALUE CREATION BUSINESS VALUE Business incubating and consulting and Business incubating Increases salesIncreases by discovering agricultural indigenous items menu new launching and produce high-quality for trend the healthyLeads and familyKorean restaurants using seasonal ingredients Training - Training - Korea Venture Korea Venture College Agriculture SEASON’S TABLE BUSINESS MODEL SEASON’S TABLE CSV MODEL that promotes shared growth withAs a brand farmers, contributes to ‘Season’s Table’ a stable forbuild sales farmhouses, using its through domestic menus channel seasonal ingredients . In this revitalized process, we have food stagnant the service industry by creating market a new family of Korean led by well-being the trend restaurants and utilizing local ingredients.actively seasonal and Launched in July 2013, ‘Season’s Table’ utilizes 2013, ‘Season’s Table’ by in July seasonal ingredients produced Launched domesticfarms to initiate growthshared with farmers,local customers provides and with healthy food prepared with fresh, seasonal promoted ingredients. actively shared CJ have growth with farming regularly the healthy consumption and industry by arranging and to the operating “Season’s Market” entrance at the a direct promotional sales channel, and stores.‘Season’s Table’ CSV CONTEXT - - GOOD HEALTH AND WELL-BEING HEALTH GOOD 2016 CJ CSV REPORT

SPECIAL INTERVIEW APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 47 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Cultivating Agricultural Indigenous Produce Yeong-ho Jo Ark of Taste is project initiated a Ark of Taste Slow-food for by the Biodiversity Foundation Slow Food under International, a non-profit organization, world the to risk discover that are at the food of extinction. cultures around Fermented Island Paste, Soybean Jeju From Korea, Anjeunbaengi Wheat and as 55 items, such 2016. are listed of June as * Yeong-ho Jo Cultivator Agricultural Anjeunbaengi Wheat Indigenous Produce, How did you decide to work with decide Season’s Table? did you How Anjeunbaengi in Wheat, a native Korea, crop is losing it as is aside pushed its by imported ground whereas 1.861 million of Anjeunbaengiis Wheat 150 tons produced, year, only of Each wheat. tons iswheat imported intotimes Korea, 10,000 production more in the volume. than such, As much as of Anjeunbaengi Wheat was veryamount causing little a difficulty demand, with and low in prominence stable cultivation.sustainable and difficult midst In the of such situation, we fortunately met Season’s for were they native food as in they 2014, searching ingredientsTable risk the at and, extinction of Anjeunbaengi Wheat, items. introduce menu Anjeunbaengi Wheat in Season’s Table To the introduced with As a native 300 B.C. seed, been us since wheat that has it it indigenous is is an listed in “Ark of the flavor a has tinge, reddish stronger a has It ordinaryTaste*.” and varieties. wheat than alsoIt a lower has so content, it gluten is easily digested. Anjeunbaengi goes Wheat Since well with other various food serves ingredients,dishesof Season’s Table range wide a withprepared AnjeunbaengifromWheat, rice refreshing seasoned vegetablesand to desserts. Please outcomes. the cooperation tell your us about and with Season’s Table trying introduces toBy continuously use native the food ingredients, develops and Season’s Table itemsvarious menu usingAnjeunbaengi Wheat for their customers. launched In 2014, they Anjeunbaengi Kimchi Wheat Anjeunbaengi Noodle, Anjeunbaengi Wheat Corn and Griddlecake serving been has Anjeunbaengi Wheat Rice 2015, Season’s Table all at Wheat Rice. times. Since They also me via Season’s Market, sell where provided with I could a marketing barley tea channel and germinated barley with powder nutritional excellent along the As Anjeunbaengi Wheat. taste and value interest of Anjeunbaengi the is Wheat known, widely in soared. Anjeunbaengi has Wheat From customers,of number increased the marketing stabilized the sales been the have routes increased and considerably. future? of CJ in the expect you What do items delicious menu the so to and new as showcase will to launch Season’s Table continue I hope excellent grown agricultural in Korea to customers. products I also will they to discover hope continue use disappearing that are native crops moment. at the and It will farmers, help us, the joint to achieve growth with I look company. for the marketing forward of distribution to expansion the channels and I will also top- my bestand the do to provide Season’s Table, through rare agriculturalthe products quality ingredients. CJ through the direct the trading withthrough consumers. also have expanded been Marketingchannels Market” where farmers“Weekend the through fresh personally and their introduce produce “Season’s the through processed foods, and accessed onlineMarket,” marketing an channel CJ Onmart. CJ Mallthrough and CSV IMPACT AND NEW CREATION MARKET TREND LEADING pioneered cuisine Korean a new Season’s Table market with of buffet style adoption the dining healthya food Korean theme, and shifting the food of the servicefocus industry to Korean Korean the expanding cuisine. By creating and family restaurant market with introduction the model forof a new cuisine, Korean we developmentto the contributed Korean the of food service industry. REVENUE INCREASE IN FARMERS’ to our customers’ contributed Season’s Table well-being by prioritizinggood health and safetyhealth in all and cover processes, which and menus, developing seasonalfinding produce, implementing management service policies. and via on- of marketing expansion The channels off-line Season’s Market and for direct sale of also farms local helps specialized products to their revenue. increase JOB CREATION contributes to lowering Season’sTable high the unemployment rate by hiring youth 80 about employees per store, are over 85% of which With 60% femaleyouth. employment, Season’s exemplary is also an Table as recognized case for creating jobs for those with disadvantage in employment. 46 Season’s Table storesSeason’s Table at the riskat the of extinction Taco with Chicken Roasted with Chicken with Taco Jeju Watson pomelo spring onion Jeju and White a domestically gourd, cultivated fruit White served Pickle Gourd at Season’s Table “Season’s Market” opened year-round at the entrance of entrance at the year-round “Season’s Market” opened Supporting Direct for Sales Channels Agricultural Produce of Season’s Market located entrance the at for storesSeason’s Table is year-round open farmers to sell their agricultural We produce. for spaces direct opportunitiesprovide and promotionsalesto farmhouses the and that lack of advertisingmeans communication with and practical provided CJ has consumers. As such, farmhousesof revenue the for means increasing Discovering and PromotingDiscovering Use the of and Disappearing Crops Indigenous discovered has Season’s Table disappearing white-gourd as such crops indigenous Korean melon, native eggplant, native cabbage, and incorporated actively Anjeunbaengi and Wheat pickle, as itemsthem into menus new the such boiled not has salad, Season’s wheat. Table and for source local stable a provided revenue only farmers also cultivation, but contract through light new sheds traditional on foods Korean their exceptional quality.and Particularly in 2016, we carried a pilot out operation, which supported marketing the of farming route businesses people. started For around by young five varieties we purchased two months, of horse beans, agricultural including produce sweet potatoes, persimmons potatoes and by five inmore order tons than to young help the farmers. this project We will to expand continue in future. the Discovering Seasonal Ingredients and Discovering Ingredients Seasonal and Items Menu Developing New works delivering toward Season’s Table nature’s seasonal flavors grown using healthy produce approximately introduced We have our land. on seasoned 70 seasonal ingredients including cabbage, Watson pomelo, mulberries yams, 140 about launched native eggplant, and and seasonal ingredients. dishes Season’s using such more diverse and launch willTable develop and healthier items menu by using locally produced seasonal ingredients. MAIN ACTIVITIES BUSINESS STRENGTHENING COMPETITIVENESS 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 49 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV NEXT STEP CJ CheilJedang, as Korea’s as food leading is company, suggestingCJ CheilJedang, a joint growth model for food thus the industry, and harmonious shared growth with SMEs. We willachieving establish Companion a sustainable as Happy business by model them with providing support our core based on competencies. and Ultimately, discovering SME products continuously withwe will Companion” KRW 100 billion develop into “Happy a brand by 2020. CJ COMPANION HAPPY BILLION ACHIEVED COMPANIES 29 % 97 330 KRW Percentage support from of loan provided of KRW 48.2 billion Fund Shared Growth the supportTraining forSMEs Sales of of H.O.P.E Chewable Vita, a key product in 2016 Companion brand, Happy the - - - KEY PERFORMANCE KEY PERFORMANCE Companion) (Happy is Donghaeng Jeulgeoun representative CSV activity CJ CheilJedang’s to create a healthy food industry ecosystem in Korea. It is aimed at discovering competitive them with providing opportunities SMEs and for sustainable growth by offering necessary marketing and capacity-building financial, support. to create process, we hope In the shared values economic by enhancing social and competitiveness fosteringproduct and a sustainable food industry ecosystem. SMEs 48 48 SOCIAL VALUE CREATION SOCIAL VALUE Enhances the independence of SMEs independence the Enhances SMEs in food the industry Expands domesticExpands for sales channels -

- marketing, management support R&D for core capacities, manufacturing, R&D for core manufacturing, capacities, ONLYONE products / raw ingredients / raw products ONLYONE BUSINESS VALUE CREATION BUSINESS VALUE Contributes to improvement the of portfoliosales product and CJ CheilJedang differentiation ingredientsSecures for product HAPPY COMPANION BUSINESS MODEL HAPPY COMPANION Through “Jeulgeoun Donghaeng (Happy Companion)” with (Happy SMEs, we offer Donghaeng “Jeulgeoun growth Through opportunities for food SMEs in the service industry them with by providing distribution R&D, as sales, technologies quality tonetworks such improve and needed and product marketing.sales competitiveness the so, By doing we increase and of our partner SMEs, portfolio sales. in turn to help strengthen increase which our product and CSV MODEL As a company representingAs a company Korea’s food a global enterprise, industry and CJ CheilJedang a missionhas to facilitate shared growth the food in the industry. By supporting core the competencies of our main partners, are working we our to value eliminate chain, SMEs on polarization promote shared growth within and food the industry. CSV CONTEXT - - AND ECONOMIC GROWTH ECONOMIC AND DECENT WORK WORK DECENT 2016 CJ CSV REPORT

SPECIAL INTERVIEW APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 51 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Executive Director of Executive Cooperation Mutual the Center for Food Safety Sohn Sei-Keun model and assist companies global the Korean CSV model and stage. on I believe of the activation Executive Director Sohn Sei-Keun Executive CooperationMutual Center forFood Safety Please Cooperation Mutual briefly the introduce Center for Food Safety. Cooperation Mutual The Center for Food Safety established is a non-profit foundation in January 2014 for purpose the of ensuring food safety. It is first the shared growth cooperation model in the one-off competenciesfood of SMEs beyond practical safety field, cultivates and which fundamental support, by passing expertisedown in food safety. Currently, working we are five on main projects, quality technology support, food include forum, safetywhich analysis-related academic education, development support. product new support and What difficulties are SMEs experiencing? before our establishment,to a survey conducted According SMEs in food the industry are small in scale proper managementwithout biggest the systems. experience they Consequently, difficulty in internal analysis in area the quality of safety. substance also They have hazardous quality and inspection difficulties in employing professional resources. employee As the human turnover rate is high, SMEs the technological power. is It urgent at stable accumulating quality control in trouble and achieving have entering intolevel market. the and to support with SMEs products new developing Please cooperative the introduce activities between Cooperation Mutual the best Center practices. for CJ, including Food Safety and Cooperation Mutual the Center and As a key cooperative for by CJ CheilJedang activity Food Safety, onsite on improvements staff the auditors guidance from are providing CJ CheilJedang’s to SMEs, and Food Safety Center offer food safety talent For through donation. SMEs with education feasible KRW 40 million to support about business items, amounting financial we are providing for product commercialization. development and CJ CheilJedang After development, and company the product the consigned sale. H.O.P.E co-developed we best the As practice, and cooperateproduction OEM through Chewable Vita with of Kukje development the technological applied the Confectionery capacity and sales of KRW 3 billion. annual produced and power of CJ CheilJedang, for expectations What are your CJ in terms of shared growth with food in SMEs the industry? interviews, listen CJ willI hope continuously questionnaire surveys and of SMEs through needs to the findings the reflect active in their support likeand I would and plan. for continuous CJ to provide support sothat their CSR activities,specialized field in the foodof safety, willdevelop into Korea’s representative CooperationMutual Center improving for Food value and Safety will added the to increasing contribute CJ’s corporatethe image ecosystem up an of shared growth with of building SMEs. CJ of KRW 2.9 billion 2.9 KRW of in Chewable 2016, Vita was established of the a representative as product Companion brand. Happy CSV IMPACT Companion)” (Happy Donghaeng “Jeulgeoun representative shared is CheilJedang’s CJ growth program. program The SMEs provides farms withand opportunities to develop their by supporting independence competencies and them with our technological power for R&D marketing. Chewable H.O.P.E Vita,and of one key products, Companion brand’s Happy the sales the recorded of KRW 2.9 billion in 2016. was selected “Best the as CJ CheilJedang Survey Index Growth Company” in Joint the for 2016 its efforts for joint growth with SMEs farmhouses. and 2016 225 cases 9,600 hours 330 companies KRW 48.2 billion 2015 112 cases 8,168 hours 236 companies 50 KRW 45.2 billion H.O.P.E Chewable Vita Happy Companion Products Happy Basic theoretical training on production cost, product quality,Basic food theoretical cost, safety, product training production on environment, law management and interestApproximately partner from standard the rate company 1-1.5% cut by each support customized technical to partnerIncludes production companies for actual renewal, hygiene control, HACCP introduction and quality and Product field management

Details forEducation partner companies via Shared growth Academy - of KRW 48.2 billion Fund to assistShared Growth partner companies with loans interest low - of new technologies production for needed launch the Transfer of CJ CheilJedang’s renewal to partner for companies product and products - of partnersSupport for regular through capacity-building visits on-site audits and - SUPPORT FOR SMES Quality and hygiene Technical Technical support Category Training and education Financial support Key Products of Happy Companion Brand: Companion Brand: of Happy Key Products Chewable Vita into market the Introduced in H.O.P.E 2015, Chewable Vita was released “Happy through Companion” with cooperation the of CJ Cooperation Mutual CheilJedang, Center for KukjeFood Safety Confectionery. and CJ supported entirethe CheilJedang fromprocess technology transfer, development package field diagnosisand to quality, hygiene and marketing,safety by investing and inspection approximately million 40 KRW in and R&D facilities.production sales the As we recorded Capacity-building Programs forCapacity-building SMEs operating been has CheilJedang CJ 2011, Since Companion)” (Happy Donghaeng “Jeulgeoun the program with prominent local food The SMEs. programcapacity-building the on focuses of food SMEs withcomprehensive support quality training, product education, including support through R&D, fund counseling, management and shared growththe fund engagedsupport. inactively are We the transfer technologyfor task development and excellent SMEs that are in of production need technologies In to develop products. new low-interestaddition, to provide to loans partners, we are operating a Shared Growth institutes. with financial In 2016, we raised Fund billion 48.2 KRW Fund for Growth Shared the allocated 46.7 billionKRW and for(97%) loan support. MAIN ACTIVITIES FOR SMES HAPPY COMPANION 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 53 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV NEXT STEP Based base-centered the on delivery parcel core business Senior model, the Delivery of the Parcel service, CJ Logistics thiswill business those model to socially as with the vulnerable, development expand disabilities such from the and low-incomegroup. addition,transformingIn by base-centered delivery parcel “Everyday Life business into model an delivery,Support also Center” parcel delivery only legal childcare, not laundry to services, provide but counseling and the profitability benefits for participants and will increased. be CJ DELIVERY PARCEL SENIOR KM RADIUS 1-2 JOBS Create senior country the jobs at 132 bases across delivery the Reduce to improve radius efficiency of work convenience and First case of a participating in Ministry the Welfare’s of Health Senior-friendly and Business initiative LESS THAN LESS THAN 1,007 - - - KEY PERFORMANCE KEY PERFORMANCE LogisticsCJ 2016, In created senior1,007 jobs the through country the bases 132 at across “SeniorDelivery” Parcel business. 2017, By senior of bases jobs will number the and be 1,300 respectively. CJ to 177 and increased Logistics is value also by creating eco-friendly emissions carbon reducing use the of through delivery electricas eco-friendly such equipment, carts. electriccarts, electric hand bicycles and Dailydelivery 1 service master volume: 250 boxes 52 52 SOCIAL VALUE CREATION SOCIAL VALUE ×5 using eco-friendly deliveryusing eco-friendly equipment Fosters for green the foundation logistics the industry by Creates senior business diversification jobs through

- - 50 boxes / person Dailydelivery volume: 5 senior deliverymen deliveryman within 1-2km radius 40-50 boxes per senior Delivery base (short distance) BUSINESS VALUE CREATION BUSINESS VALUE Increases efficiency of the business value of the chain efficiency Increases Reinforces delivery service in areas where delivery is Improves customer satisfaction with delivery the service SENIOR PARCEL DELIVERY BUSINESS MODEL SENIOR PARCEL The SeniorDelivery The Parcel is a service social issuesto address adopted by using our core interest continued the philosophy sharing of competencies, Group’s CJ and based on in senior population collect from aging poverty. packages and Seniors independently delivery deliver bases them and to apartment complexes residential nearby areas. and The structure of the existing delivery process, from “a regional sub terminal ▶ delivery to customer” in complete the is value redefined chain, parcel to a process of package sorting at “a regional sub terminal ▶ shipping to a delivery base ▶ delivery to customer.” Meanwhile, created we tailored senior reduced with jobs shortened working and hours work of delivery scope collection. and CSV MODEL It is senior that the expected older) population will (65 and take Korean up 37.4% of the population by 2050 due to low fertility aging. Korea’s senior and poverty rate in 2016 was highest49.6%, the OECD members. levelamong sufficient However, Korea lacks social mechanisms to support senior citizens after retirement, thereby making it important to of seniors. to need the We recognized create jobs to promote independence economic foster for create senior social sustainable the groundwork quality and self-reliance jobs for seniors delivery parcel the through industry. CSV CONTEXT - - difficult - AND ECONOMIC GROWTH ECONOMIC AND DECENT WORK WORK DECENT 2016 CJ CSV REPORT

SPECIAL INTERVIEW APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 55 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV President of Senior DeliveryParcel for Group Region Nowon-Sanggye Lee Seung-hee President Lee Seung-hee Senior Delivery Parcel Region for Nowon-Sanggye Group What motivated to become a member you of CJ Logistics’ Senior Delivery Parcel service? averageAs the lifespan in Korea, quality increases the of life jobs for senior and citizens have become a serious social issue. While trying to solve issue the of job creation for senior citizens, I started delivery parcel the business with support from Korea the Senior Citizens’ Association Seniorof Dept. the Welfare Office. Nowon-gu in the and business started The out Branch Nowon with with five support only the people,from Logistics CJ but two years ago, I was able to increase business scale Seniorthe Delivery through Parcel 20 senior service. I am working with Now, around deliverymen. isHow Senior Delivery the Parcel Service provided? Senior 20 senior Centerdelivery a as useWe Sanggye-dong the in Nowon-gu base. Around deliverymen,customers. todeliver 80s, mostly individual in their deliverya products and 70s When apartment into brings complex, an truck in our products senior deliverymen sort them into each in their deliver they then, apartment allocated building; products the sections using eco-friendly also carts. they Electric improve to the use, hand and carts electricconvenient are carts and imagebrand Senior Delivery of the Parcel service. From perspective the of senior deliverymen, the Senior Delivery Parcel also us with service provides helps us build benefits, only economic not but relationships with health, residents. local physical we feel improve As we proud our mental and working for Senior Delivery the Parcel service. residents local the do How evaluate Senior Delivery the Parcel service? from residents the feel that they feedback saferI receive to doors open to their senior neighbors compareto deliverymen never have seen they before. residents The also can like they that fact the senior through parcels or deliverymen send return products instead of going to post the office. The returns justservice by making a gives take care of product customers in can that they convenience simple call to our senior phone deliverymen. to see with hope future in the Senior Delivery the you Parcel What do service? past, senior the In were80s citizens treated in their and 70s well community alsoas elders and supported by their families; make this however, is longer no case. to and the We need move ourselves“olderthat useful.people prejudice The helpless” are isbiggest the for obstacle senior citizens. CJ Logistics senior provides citizensopportunity with to work Senior the an through DeliveryParcel service. There are unlimited jobs for senior citizens in filledareas with apartment complexes. SeniorDelivery the Parcel hope I so toimproveas service the will to expand continue quality of life for senior citizens. CJ 50 Electric hand cartsElectric hand 50 Electric bicycles 185 Smart carts

CSV IMPACT JOBS SENIOR CREATING CJ Logistics is issue the addressing high of senior poverty rate creating by sustainable, quality jobs for senior citizens Senior the through Parcel Delivery Senior project. Delivery Parcel is the first case of a conglomerate participating in the Ministry Welfare’s of Health Senior-friendly and Business initiative. launch project the Since expanded been project has 2013, the in June Decemberof end As of the country. the across senior1,007 2016, created been on have jobs 132 bases. This is especially effective in senior expanded be job creation business the can as delivery In 2017, the country. the across volume isgradually forecast to in increase line with the online industry growth and of home shopping 1,300 senior jobs around Accordingly, shopping. will created base be through (accumulated) (177 bases,expansion accumulated). REALIZING GREEN LOGISTICS CJ Logistics value created eco-friendly the emissions carbon by reducing eco- through electricalfriendly delivery as equipment, such smart electric carts, electric hand bicycles and carts for Senior Delivery the Parcel business. By equipment and business expansion continuous investment, will we in achieving way the lead green logistics.eco-friendly 1,300 177

2017 goal 1,007

132 2016 529 75 54 2015

Smart carts

Parcel sortingParcel 172 To create 1,000 seniorTo jobs 27

2014 Jobs (person)Jobs Bases 146 14 2013 NO. OF SENIOR JOBS CREATED NO. OF SENIOR Efforts to Service Improve Quality LogisticsCJ is greata dedicating effortsof deal to improving service the quality Senior of the DeliveryParcel service in order to strengthen business competitiveness.the While providing service training regular and on-the-job programs to senior deliverymen, CJ Logistics alsoimproves data the processing operation and support for customer service operation in each delivery base, in order better to provide services to customers. Improving Working Conditions Working Improving of senior burden physical the reduce To deliverymen lower risk the and of accidents duringsenior the delivery, parcel LogisticsCJ delivery to the transports products bases, from seniorwhich deliverymen up and pick can to region a deliver within products the 1~2km using eco-friendly easy-to-operateradius and of electric equipment. For convenience the senior deliverymenwork we the efficiency, and also exclusive provide areas where can they take a rest.sort, collect cargo and store and Building Platform for Cooperation Creationin Senior Job existingThe projects for senior job creation have a limitation highlyare in they that dependent to be are bound government and the on budget one-offthis,At projects. CJ Logistics, the as first competitiveindustry, in the the increased power Senior Delivery of the Parcel business a platformby building for senior job creation basis the on of private-public-government cooperation. In addition, with feasibility the of greenthe logistics increased business from an deliveryuse of eco-friendly equipment and business Logistics CJ of the scope, expansion from Ministry the is budget receiving of Land, gradually thus and Transport, Infrastructure and cooperationincreasing with stakeholders. MAIN ACTIVITIES STRENGTHEN TO STRATEGIES COMPETITIVENESS BUSINESS 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 57 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV NEXT STEP The importanceThe of girls’ UN SDGs in of the September was emphasized education 2015. Moreover, with launch the in terms development, importance the of educational of corporate participation is stressed. has education As such, internationalbecome in the agenda key further a Girls’ society. the To been activate Campaign, has Education which jointly promoted with 2014, we signed UNESCO since a partnership 2016 for utilization the in March Ruby,” of “ from CJ E&M’s globala character animation, official of UNESCO. We will an as to use character group’s the continue business capabilitiesresources and for awareness need the of the to spread girls’ education. CJ OF AWARENESS RAISE TO CAMPAIGN EDUCATION GIRLS’ MILLION (2016) MILLION (2016) BILLION (AS OF 2016) 430 52 1 KRW KRW Accumulated donation amount donation Accumulated to donation Girls’ Campaign Education CJ OliveYoung’s Girls’ Campaign Education video won CJ OliveYoung’s in Global the award Sharing Categoryan at the “2016 Korea CSR Film Festival” Donation to Girls’ Campaign Education a link through with program CJ E&M’s broadcasting KRW - - - - KEY PERFORMANCE KEY PERFORMANCE Together with UNESCO, CJ is carrying the out “Girls’ slogan the Campaign” of Education under “Bright Girls, Brighter in Future!” order to provide opportunitieseducational to girls in developing countries.We improved awareness public the of girls’ by performing education various activities at customer basis points the on of CJ contact as competencies, such resources and Group’s Until 2016, CJ OliveYoung. KCON, MAMA and of approximately KRW 1 billiona fund has to UNESCO Girls’ the donated raisedbeen and Fund. Education educational educational improving the Raising funds for Raising funds environment of girls 56 56 girls’ education Raising awareness of Strategic partnership SOCIAL VALUE CREATION SOCIAL VALUE girls’ various through cultural platforms education Raises awareness public importance of the of

- Campaign platforms using CJ Group’s (CJ OliveYoung, KCON, MAMA and etc.) KCON, MAMA and (CJ OliveYoung, campaign Raising awareness Participating in BUSINESS VALUE CREATION BUSINESS VALUE Public Promotes CJ’s brand by linking products with by linkingPromotes products CJ’s brand a social cause of communication with customers channels Secures UNESCO GIRLS’ EDUCATION BUSINESS MODEL UNESCO GIRLS’ EDUCATION CSV MODEL for a campaign education to provide November running been Since have 2014, we girls a partnership in developing nations through with UNESCO. Actively utilizing our expertisecompetencies and cultural platforms, through we inform generation younger the importance girls’of poor the and in countries. developing about conditions education We are also urging their to cause. contribution Girls’ the Our Campaign Education is a differentiated engagement fun with model that incorporates customers easy and UNESCO are used to improve raisedthe by CJ and to society.in contributing Funds of girls conditions educational in countries. developing More than 130 million130 More than world the deprivedare of girls around 17) (aged and 6 between world’s of the 67% illiterate and education, are female. girls’ Through we can education, raise self-determination the capabilities help them of women in developing nations and make also better decisions. but Girls’ individuals, brings only to thus not education change society a whole. as In line with CEO’s sharing the philosophy be that “poverty not should generationpassed next to the on inequality,” of educational we work because to provide to education career dream-building, learning and•character opportunitiesequal and Likewise, youth. importance the recognize we take girls’of the childrenand and education lead in raising awareness with UNESCO. CSV CONTEXT - - QUALITY EDUCATION 2016 CJ CSV REPORT APPENDIX Chief of the Section of Education for Section of Education Chief of the Equality Gender at UNESCO and Inclusion Justine Sass CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 59 Justine Sass Sass for is SectionJustine of Education Chief of the the Equality Gender leads a global at UNESCO. She and Inclusion team supporting gender mainstreaming UNESCO across programmes,education gender-specific programmes and that aim some to address greatest of the obstacles challenges and world. worked the has She forto girls’ around education gender over multiple 20 years across to continents advance people empower to realiseequality, young and their rights. Why is it important to support girls’ education? At UNESCO, gender equality is ensuring gender equality a global priority, that includes and Thisin is education. all children when regardless – access, their of equal gender have – complete participate that enables can them education to live and an empoweredand and dignified lives. Supporting girls’ is education good for girls, gain knowledge, who confidence skills better forand a healthier, lives. girls and Educated more productive are more likely to marry are more few have later, children likely who healthy to be and and to survive and schools themselves. attend to eventually girl An educated is more likely better to have job to invest earningsopportunities those a woman, as earnings and and into her family and community. girls Educating also helps foster wider has societal and growth economic and development benefits. UNESCO-CJ strategic partnership for girls’ education “Better Group UNESCO-CJ The Life for to Girls” access of campaign addresses lack the by girlsquality faced education in regions developing by leveraging CJ’s significant media leadership United the UNESCO’s technical as on by drawing and influence and outreach alsohas become CJ Group a majorin education. Nations’ specialized agency contributor for girls’ Girls’to UNESCO Malala the to Fund Right expands access which to Education, quality disaster. especially in education, countries affected and by conflict This is enabling world, the UNESCO tofrom support literacy girls’ programmes around education for girls in earthquake-stricken to safe areas of Nepal, CJ school programmes And in Tanzania. animated Ruby” television “Rainbow Group’s series girls’ is changing and opinions own in be life, can beliefsthey what about gender breaking stereotypesand expectations and promoting age. gender equality at a very young forWhat does from promoting Group CJ UNESCO expect girls’ education in developing countries? demonstrated partnership has the raise successfully Group CJ awareness how can promote girls’and right, a basic human as education a global priority imperative an and development objective. geographic the Together UNESCO aims with to expand CJ Group, coverage our of programmes a stronger gender on girls’ on focus including education, disparities disadvantage. commitment Our and to make a better life for girls will continue strategic fuel the that sustains to the be CJ Group. partnership UNESCO and between

SPECIAL INTERVIEW REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CSV IMPACT “Better the Through Life for Girls” campaign withpromoted we have UNESCO, our brand image stimulated and awareness public the of importancethe of girls’ In particular, education. we delivered message the for girls’ education formed this on global and consensus a public KCON. Up to 2016, issue MAMA and through of approximately KRW 1 we raised funds the billion various through campaigns donation of from MAMA SMS proceeds and CJ OliveYoung to funds the donated Superstar and K, and UNESCO. CJ the world’sthe largest-scale K-culture festival, we a campaignheld to improve awareness public girls’ in Dhabi on Abu KCON At education. a video message2016, we showed from Irina Director-GeneralBokova, the of UNESCO, and staged performances of famous K-pop stars in effortan to raise girls’ awareness public about education. SIA Asia), 2016, CJ hosted SIA (Style Icon In March fashion trend-leading only Asia’s and the one festival. During festival the period, “SIA MOVE created Me,” a sculpture “Love Campaign” and by installation artist Hwa promoted Choi, Jeong Girls’the Campaign. Education proceeds The werefrom Me” piggy to “Love donated banks cause.the GiBoutique Onstyle airing been has E&M CJ 2016, March Since with show donation a new-concept GiBoutique, celebrity donation the guests, toencourage viewers. Viewers and wish to who of fans own celebrity-donated items joy the experience can of sharing by participating live in the donation show the program. through received Donations are utilized to support Girls’ the Education Campaign. Shine BrightShine Diary a “Shine produced OliveYoung In 2016, CJ Bright Diary,” comprised a package of a pouch, a cream, as hand Around a mirror Round and of “warmway communication for girls have who anxieties for Shine The future.” the and hopes Bright Diary was presented to customers who over purchases made KRW 50,000 in order the 1,000 donated OliveYoung CJ arrival,of and toKRW for UNESCO. out every diary handed Tree Shining In December part 2016, as of UNESCO Girls’ installed a Campaign,Education CJ OliveYoung “Shining Tree” measuring approximately 7m in Shining The Square. height at the wasTree digital a created sculpture with small lightLED symbolizesIt bulbs. girlsof future the brightlyshining withlittle a attention. and help a kioskWhen installed tree of the in is front light the together changes touched, with music. time was 100 KRW Each kiosk the is touched, “UNESCO Girls’ to the donated Education has participation The Campaign” count fund. totaled from dailya been the on basis and, symbolizes which year the 2017, 2017th touch, resulta As was doubled. amount donation the 90,000 participants, a total amount with around of KRW 12 million was raised. CJ E&M SPREADING AWARENESS THROUGH OF GIRLS’ EDUCATION PLATFORMS CULTURAL worked has E&M CJ 2014, the to spread Since awareness and of girls’ to audiences education cultural the KCON, viewersand MAMA through platforms Hallyu. that represent K-Pop and MAMA / KCON CJ E&M raises awareness public of girls’ performing campaigns and by holding education KCON, various activities MAMA and through are global music festivals.which MAMA (Mnet become has Asia’s MusicAsian Awards) representative festival. music awards award The a stage as for ceremony cultural functions Asia. At MAMA, Korea between and exchanges we deliver Girls’ Campaign Education messages at Girls’ raise funds videosthrough and booths. KCON, Education In addition, through 58 Shining Tree Shining MAMA / KCON Shine BrightShine Diary UNESCO “Better Life for Girls” Donation Ceremony Campaign Slogan (Beautiful Mind, CampaignBeautiful Video and Change) performing is continuously CJ OliveYoung activities “good the to consumption” spread interest public increase in UNESCO culture and Girls’ Campaign. slogan Education the Under of “Beautiful Beautiful Mind, CJ Change,” a campaign video to produced OliveYoung message the spread eyeliner that “The buy you will for a pencil a girl be to write her dreams and for will a girl lipstickthe a crayon be buy to you color her emotionally dreams.” It effectively and delivered message, the more “The beautiful you become, sowill of girls.” future the video The award an favorable won received responses and in Globalthe Sharing category “2016 at the Korea CSR Film Festival.” Donation through “OliveYoung Day,” Day,” “OliveYoung Donation through Sharinga Monthly Day additional to provide event is Day an OliveYoung VIP customers points to CJ OliveYoung and 27th membersCJONE and 26th 25th, the on to a equivalent amount An month. each of CJ OliveYoung percentage accumulated of the points is to UNESCO Girls’ donated Education Fund. CJ OLIVEYOUNG LEADING CJ OLIVEYOUNG AND ETHICAL CONSUMERISM CULTURE FUN DONATION promotes a variety of donation CJ OliveYoung customers programswhich through create can social value fun by participating in and easy is leading activities.donation OliveYoung CJ consumerismethical culture donation and bagsby selling eco diariesas items, and such by togo charity, proceeds the and inwhich year-end a organizingsocial media and events tree event. donation MAIN ACTIVITIES makingare We efforts to raise awareness the of world that there the who are girlsfact around education that and are deprived of education for future the better. the change funds The can to forUNESCO donated are raised Group CJ by use environment in improving educational the for girls. 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 61 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV NEXT STEP Based our R&D performance, those on with different, high and functionality, we will launch products high value-added bio technologies eco-friendly using microorganism the nutritious and develop food healthy and products and fermentation health the of customers eco-friendliness in technology, daily thereby life. enhancing and CJ CheilJedang investmentwill continue in efforts into bio its tap sectors, world-class food in and the technological and to capacity health the of our customers. for enhancing develop products ENVIRONMENT-FRIENDLY ENVIRONMENT-FRIENDLY DEVELOPMENT BIOTECHNOLOGY CJ BILLION 1,801.6 KRW Bio business sales in 2016 certificationAwarded of UN SDGs Excellent Development Cooperation Model for the first time in Korea in 2016 SMART certification for fulfilling SDGs Goal 2 improve food security and achieve hunger, (End promotenutrition sustainable agriculture) and and of implementation means Goal the 17 (Strengthen revitalize global the and partnership for sustainable - - development) KEY PERFORMANCE KEY PERFORMANCE currently supplies to aminoCJ CheilJedang acid globalthe market. In particular, we are expanding our business territory in countries Asian where a low-protein feed market started to emerge. CJ world’s the as largestCheilJedang, feed additive supplier, a leading playing on is concentrating livestock culture advanced the role in expanding world. the CJ CheilJedang’s of Europe around an about brought has of aminosupply acids livestockeffect to reduce nitrogen excretion approximatelyby continuous 8~9%. Through technology development, will we a build use of severalstructure for types concurrent market in the of amino so to acids as reduce nitrogenreducing by excretion and 20~30%, by nitrogen excretion ableare we to prevent environmental pollution. 60 60 Bio Products Green / WhiteGreen SOCIAL VALUE CREATION SOCIAL VALUE 2 excretion of livestock Reducing environmental pollution nitrogenReducing by reducing crops to replace soybeans to replace crops Contributing to achieving zero hunger by cultivating zero hunger foodContributing to achieving

-

- CO Bio Factory Organic FertilizerOrganic (bacterial fertilizer, liquid fertilizer) Biomass Photosynthesis of Virtuous Cycle Sustainable Renewable Resources BUSINESS VALUE CREATION BUSINESS VALUE Expanding Business Items:Expanding Fermentation technology / customer base synergy expansion for aminotowards Market food expansion acids medicinal use and SUSTAINABLE PRODUCTION STRUCTURE SUSTAINABLE Starting with the production of MSG in 1964, CJ CheilJedang began bio research in in began bio research Starting of MSG in 1964, CJ CheilJedang with production the “L-Lysine,” as such for amino feed products, acids produces earnest. CheilJedang CJ basis the “L-Valin,” on its of microbial “L-Methionine” and “L-Tryptophan,” “L-Threonine,” fermentation technology developed over past years. 50 the produced In 2015 we have bio engineering"L-Methionine" using eco-friendly technology first the as is company the application of fermentation through aminoworld. acids By its produce technology we can technology utilizes fertilizers. as using ingredients raw from nature and the byproducts the contributes to solve starvationCJ CheilJedang a sustainable by building production of other cereals enabling production thus instead of soybeans. structure and CSV MODEL In line with improvement the levels of income in countries, developing global meat of feed production a result, As amount the pace. at a rapid consumption increased has proportionally. alsohas increased price The of cereals, are used for which protein supplementation in feed for due to livestock, climate continuously is increasing change agricultural issues. productivity and pose This a risk as can to the food security and tolivestock to ensuring contribute the plans industry CJ CheilJedang in near future. the sustainability of environmental preservation food security innovative by developing and technologies for used amino in feed the products. acids CSV CONTEXT - - ZERO HUNGER ZERO 2016 CJ CSV REPORT

SPECIAL INTERVIEW APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 63 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Executive of CJ CheilJedang Bio Business of CJ CheilJedang Unit Executive Duk Roh Hang Roh Hang Duk Bio Business Roh Hang Unit Executive Bio BusinessCJ CheilJedang Unit Please briefly introduce the business of CJ CheilJedang Bio. Please business briefly of CJ CheilJedang the introduce selling food and additives, such is manufacturing Starting in CheilJedang 1964, CJ with MSG production tryptophan, with lysine, as microbial methionine and feed additives, such and MSG, and nucleotide as fermentation refining expertise technologies and over last and the 50 years. As a leader accumulated portfolio developing nature- on focusing our product in global the bio market, and expanding we are technologies. we released as manufacturing Recently, amino “Cysteine,” innovative acid an and friendly bioa food technologies developed using additive eco-friendly CJ CheilJedang into market. the As such, is solidifying 1 position No. the in global the bio market. Bio in play solving issues? hunger food What roles CJ CheilJedang security can and In line with improvement the levels of income in developing countries, global meat consumption has As a result, price the of cereals, pace. at a rapid are used for which increased protein supplementation thisin recognized feed a sign for as impending crisis livestock, of an CJ CheilJedang rose quickly. of livestock the foodsecurity industry. and resultAs a ceaselessof dedicating efforts to to ways find the developed technology the supplement to produce protein sources, CJ CheilJedang and replace technology.same of protein by using its with manufacturing half amino amount efficiency only the acid with this important isLysine, technology, produced an plays which role in food security. With the efforts first the as off, paid CJ CheilJedang, certification in the Korea, was awarded of SDGs Excellent Development Cooperation from Model UN in the 2016. What efforts Bio make does forCheilJedang CJ sustainable environmental preservation? activities process to carry with production a minimum out eco-friendly is an building CJ CheilJedang and course in the production of byproducts wastes energy of consumption, reducing and amount inevitablyrecycling the generated wastes fertilizers. as in world is company the only the CJ CheilJedang bio fermentation eco-friendly developedthat has an for glucose technology the using sugarraw and Particularly, five DL-methionine in usedthe amino in our feed market, products. acids CheilJedang CJ of L-methionine in production developed the using petroleumsucceeded using a fermentation technology for first the time of nitrogen world in amount the for the amino in 2015. The feed reduce acids of feed consumption lower thus amount the energy and efficiency, excreted increase by livestock and pollutant discharge. We anticipate that this willand to solving contribute global environmental issues. direction Bio? forWhat are goals development and future of CJ CheilJedang studying vision new the BioUnder is continuously Live of “Live Natural,” Green, CJ CheilJedang basis the to environmental On conditions. consumption according effective and methods of production efforts,of the we will role a leading play in making protecting preparations for market future the and sustainability technologies global of the environment. innovative The to for develop amino acids feed using fermentation a will to ensuring efficient contribute technique use and, cultivation of land solve issue the of starvation.accordingly, a paradigm In addition, through shift biomass- the towards bio industry,based eco-friendly we will environmental prevent pollution caused livestock by the efforts willindustry. continuous dedicate CJ CheilJedang to technologies, developing new upgrading ensuring sustainable environmentalR&D competencies preservation and food production. and CJ CSV IMPACT Bio will role a leading CJ CheilJedang play in making preparations for market future the sustainability protecting and global of the environment.meat As consumption continues technologies innovative the to increase, to for develop amino feed acids using a fermentation will to contribute technique ensuring efficient use and, of cultivation land solve issue the of starvation. accordingly, In paradigm a through addition, shift the towards biomass-based bio industry, eco-friendly we will environmental prevent pollution caused by livestockthe industry. in Working cooperation with will global the community, CJ CheilJedang efforts continuous dedicate to new developing technologies, upgrading R&D competencies and ensuring sustainable environmental preservation food production. and SUPPORTING ZERO HUNGER AND ZERO HUNGER SUPPORTING FOOD SECURITY plays by CJ CheilJedang, L-Lysine, produced significanta role in food security dimension. findings, research to of lysine the a ton According saves meal soybean of (by-product 33 tons remainingafter extraction oilof from soybeans). Considering global the lysine consumption (22 million this 2015), of 73 that as means tons million meal of soybean year. is tons saved each the This opportunity to presents address an issuesglobal hunger by enabling for farmland the corn. as cultivating other such crops LIVESTOCK SPREADING ADVANCED CULTURE takes initiativethe CheilJedang CJ in spreading world. the livestock culture around advanced bioAs a leading in company Asia, we carries “efficient use diverse of out including projects, eradication the of and planet the on farmland “preventionpollution of hunger,” caused by “bio livestockthe development business,” and cooperation in Asia.” With these efforts, we cooperativeare building relationships for technology development with business the and governments to of Asian countries, contributing livestock culture. advanced of the expansion the 52% 24% 13% 28% 23% 16% 13% 45% 5 21% Lysine Threonine Nucleotide 3 Tryptophan 14% 62 17% 9% 4 29% 34% 10% 31% 9% in world the (feed additive) in world the (food additive) st in world the (feed additive) st th in world the (feed additive) st CJ CheilJedang Eppin Meihua Others CJ CheilJedang Ajinomoto Evonik Meihua Others CJ CheilJedang Ajinomoto Star Lake Meihua Others CJ CheilJedang Ajinomoto GBT ADM Others Market Scale: Approx. 42,000 tons Market Scale: Approx. Average Rate: 11% (2008-2013) Growth Market Scale: Approx. 400,000 tons Market Scale: Approx. Average Rate: 22% (2008–2013) Growth Market Scale: Approx. 2,130,000 tons Market Scale: Approx. Average Rate: 11% (2008–2013) Growth Market Scale: Approx. 13,700 tons Market Scale: Approx. Average Rate: 36% (2009–2013) Growth GREEN BIO BUSINESS PERFORMANCE GREEN BIO Tryptophan: 1 Tryptophan: - - Lysine: 1 - - Nucleotide: 1 - - Threonine: 4 - - INDEPENDENT DEVELOPMENT OF OF INDEPENDENT DEVELOPMENT “CYSTEINE” USING ECO-FRIENDLY TECHNIQUES Using cystine successfully-developed in the fermentation eco-friendly a stepping as process stone, we aim to take first the in the place market amino lysine, other acid than functional tryptophan marketswhere we and nucleotide largest the secured already have globalmarket share. Emerging a future-orientedas ingredient bio material, advanced used be an as that can spotlight the is aminoreceiving acid across in of fields. extensive range an We succeeded developing cystine, as a type of amino acid, core materialthe raw for “Cysteine.” We can pollutionaddress issues we use sugar raw since materials, raw as glucose also have and and different a secured level competitiveness of by establishing a system that covers from the materials of raw supply We to final products. will invest more in core technologies, equipment in expert our the scope talents to and expand market. amino acid functional GREEN BIO BUSINESS GREEN BIO BUSINESS food focuses on additives, such CJ CheilJedang flavorings,as well for as amino as feed and acids Bio Green business, the through food products functional is to createwhich seeds new and materials plants. using microbial strains and fermentationWith eco-friendly technologies Bio Green the business, developed through we will food secure materials for to future the existingreplace also sugar that can be sources used food as resources by developing a new technologysugar to extract from non-edible biomass, waste as timber such well as straw, as bagasse.corn stalks and MAIN ACTIVITIES 1 ECO-FRIENDLY NO. WORLD’S BIO R&D Starting in CJ 1968, with production MSG Bio grew new developing by CheilJedang entering global the market and from the products 1980s to mid-2000s. of the the At present,end our business scalewe are further by expanding securing a total of eight bases, global production Malaysia. in U.S. and the as such 2016 CJ CSV REPORT 66 72 78 84 90 96 102 108 114 APPENDIX CJ CHEILJEDANG CJ FRESHWAY CJ FOODVILLE CJ LOGISTICS CJ O SHOPPING CJ OLIVENETWORKS CJ E&M CJ CGV CJ HELLOVISION FOOD & FOOD SERVICES / BIO & PHARMA & LOGISTICS RETAIL & MEDIA ENTERTAINMENT CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 65 04 competencies and expertise.competencies and CJ creates shared value REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CJ strives to create shared value with society in of utmost areas with need CJ’s expertise. by developing CSV businessby developing models that leverage affiliates' each CSV MANAGEMENT CSV CJ 64 OF AFFILIATES CSV MANAGEMENT CSV MANAGEMENT 2016 CJ CSV REPORT 9 0 6 0 4 4 2016 27,423 18,702 18,016 20,129 (Unit: base) 145,632 Feed & Livestock (Unit: 1 billion KRW) (Unit: 1 billion KRW) 2015 4 1 1 1 0 4 APPENDIX 23,680 17,824 17,397 18,054 Bio 129, 244 117,017 1 0 0 0 2 1 2014 20,978 17,421 14,782 16,177 Food Ingredients 5 0 1 2 3 3 Food

* CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 67

2014 2015 2016 SALES STATUS SALES OVERSEAS BASES IN 2016 * Consolidated statements financial excluded Category China Malaysia Indonesia U.S. Vietnam Others FEED & LIVESTOCK BUSINESS DIVISION FEED & LIVESTOCK release the Since of a first from our Busan feed product Livestock & Feed in the 1973, plant Business Division of Korea’s leading livestock been has industry CheilJedang CJ and feed products development outstanding the through technologies. Based our technological on power and expertise, into global the market and we are expanding currently operatingbases in six production 19 countries Philippines, Having China. the and Vietnam including facilitiesestablished systems the in plants, and advanced Feed & Livestock Business Division ISO9001 received certification for quality the management HACCP system and certification, for first the time in global the feed & livestock strengthening industry. on focused have we addition, In our technological power to by create top-quality products, technology. materials new developing Based eco-friendly and we quality of our products, consistently the on outstanding our status will world’s the enhance best provide nutrition and a globalas feed & livestock company. STATUS SALES Category Food Food Ingredients Bio Feed & Livestock REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ BUSINESS OVERVIEW FOOD BUSINESS DIVISION of ‘Dasida’ inFood production 1975, the the BusinessSince launched successfully has Division CheilJedang CJ of ‘bibigo’, “Hetbahn,” Healthy” “The including brands, numerous “Gourmet,” inand order more to develop healthier and food. efforts, the Through convenient solidified we have our position best the as general food in company Korea. In order food culture, food CJ CheilJedang Korean to spread and enteringis actively into global markets local building by CJ CheilJedang overseas bases branches. and production will make utmost the efforts our customers to provide with differentiated and and more products, enriched ONLYONE become 1 global No. lifestyle the that creates company a foodnew culture. FOOD INGREDIENTS BUSINESS DIVISION Food in 1953, the Started a sugar as manufacturer out Ingredients Business produced has Division of CJ CheilJedang cooking various wheat flour and food ingredients, including oil, serve a basis which as for all food contributed items, and healthy tothe diet consumers.of striving been have We to consumers provide with safe living materials healthy beyond products food, by releasing functional high value-added from tagatoseranging cosmetic to allulose plant materials and expertise our accumulated basedon in material production. In order to discover advanced values new by consistent and develops basic materialtechnology, CJ CheilJedang markets with plan the Myanmar, in and Vietnam as China, such abroad, into a global food ingredient company. to advance BIO BUSINESS DIVISION fermenting ourBy unrivaled refining technologies, and the Bio Business and is Division manufacturing of CJ CheilJedang MSG, and nucleotide distributing food additives including lysine, as methionine wellas feed as and additives, such global intryptophan. company the bio As a leading business portfolio focusing our product market, and we are expanding manufacturing innovative and nature-friendly developing on technologies. We are solidifying 1 position No. the in the global bio market by releasing edible ‘Cysteine’, amino an acid bioengineering withapplied eco-friendly technologies.

Respect www.cj.co.kr Creativity Passion Integrity Contributing global to the community best the value by providing with our ONLYONE products and services and products ONLYONE Global lifestyle inspiring company life a new convenience of health, and happiness Shared Growth ONLYONE, Talent, 66 VISION & MISSION MISSION VISION CORE VALUES PRINCIPLES OF CONDUCT VISION & MISSION our culture to in a greater isCJ spreading way the leading world. the lives aim We of people the number to enrich across of music. Based movies, Korean food, and world the by enjoying experiences TV shows happiness so that everyone around mankind creating been differentiated has CJ Talent, and customer Growth Shared core the valueson ONLYONE, of value. order In to into a global lifestyle nation, the CJ will to take challenge advancing up the on to society continue contribute and that company creating lifestylesleads the on utmost the values. world the and of people around As Korea’s No. 1 general food company, CJ CheilJedang has been contributing to development the contributing As Korea’s been 1 general has No. food CJ CheilJedang company, Co.,in Ltd. 1953, bioengineering nation’s CheilJedang of the as food and industry. Founded nation’s the business food areas from industry by expanding advancing been has CJ CheilJedang basic food stuff processed to food food spin-off the ingredients since from and CJ Co., Ltd. in 2007. to make plans long-term CJ CheilJedang development of global product business through ecosystem CSV initiatives the on of food to focus industry. expanding and innovation, brand and 13,161,898 shares CJ Corporation 37%, foreign investors 23%, National Pension Service 13%, treasury stock 3%, other 25% KRW 14,563.2 billion KimChul-ha November 5, 1953 Food, food ingredients, bio, feed & livestock Center, (HQ) CJ CheilJedang Seoul, Korea Jung-gu, 330, Dongho-ro, 82-2-6740-1114 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Shareholders Sales CEO Date of Establishment BusinessMain Info. Contact 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 69 EFFORTS FOR ECO-FRIENDLY R&D EFFORTS FOR ECO-FRIENDLY bio industry to develop food the plans and CJ CheilJedang solvesthat various environmental issues utilizing through materialsnew developing reusable resources are and which withrelpaceable chemical materials of petroleum resources. developedWe have cosmetic materials a ‘Bio-Based and also extraction and plant surfactant’ animal through and fermentation microbial through enzyme technologies and chemical technologies.that replace In addition, we produced a fermentable of timber sugar out by operating a non-edible biomass pilot We are also in Indonesia. plant dedicating as efforts such continuous products, to create eco-friendly feedlowering-odor additives. amino acid feedsand FOOD SAFETY AND NUTRITION MANAGEMENT SECURING FOOD SAFETY established has For safe CJ CheilJedang food production, operated a safetyand management system for entire the from materialsprocess introduction of raw the to production, 1,200 For distribution about consumption of products. and world, the we exported to countriesproducts 50 around gather information food on safety laws by management and maintain freshness the thus of products and country, each swift through case of the In supply. transportation and China, we are operating China Food the Safety Center in Beijing so to as strictly verify entire the process, production verification biologicalincluding of chemical of the and hazards products. AND NUTRITION OF CONSIDERING HEALTH CONSUMERS in made consideration products is providing CJ CheilJedang of customers’ health, by supporting nutrition and R&D operating Food Institute. the Research personnel and Starting more Healthy” of “The ham that contains with launch the released “BYO pork, of 90% in CheilJedang CJ 2010, than Multi discovering Probiotics” in 2016 by constantly BYO salesprobiotics in Kimchi. In addition, grew CJ CheilJedang’s health campaign products, by 21.6% in we launched 2016 as was Sweetree”“Beksul which of with made one natural sugar lowering glycemic caloric index. value and 2016 536(95) 106.4 2,103(638) (Unit: case) (Unit: 1 billion KRW) REPRESENTATIVE CSV PROJECTS REPRESENTATIVE 2015 493(95) 1,785(628) 2014 483(86) 64.0 1,573(550) CSV MANAGEMENT CSV * ** 73.8 Number of new applications includes undisclosed applications and overseas and applications undisclosed Number includes applications of new in Korea applications of new is number The writtenapplications. in parentheses. of number the overseasNumber patents, and includes of patents owned in Koreapatents owned is written in parentheses. 2014 2015 2016 INTELLECTUAL PROPERTY * ** R&D INVESTMENT Category Number Applications of New Number of Patents Owned CJ GROWTH SECURING CREATIVE ENGINE GROWTH GLOBAL vision the Under achieves Best of “World CJ,” CJ CheilJedang global growth in four business food, areas: food ingredients, lead K-food livestock. culture, we are To feed and bio and sales by developing strategicexpanding for the products dumplings, as global market, such sauces, dried laver and market. characteristics to the We have of each according U.S. marketsalso with functional entered and European the allulose tagatose, and in addition including to the products export wheat basicof food cooking oil as items, and such flour Myanmar. fast-growing in the markets and of Vietnam Furthermore, global competitive building we are continuously of our business scope to fields the the power by expanding biological development the as of of bio and resources, such fermentation eco-friendly “Cysteine," an technique. R&D STRENGTHENING building and ideas developing innovative on Focusing technological capabilities, sets a goal of R&D CJ CheilJedang investment sales company’s to 1.6% of the be by 2020, and scale personnel.R&D of Following support the and expanded establishmentthe of “CJ Blossom Park,” a composite R&D complex combines institutesbusiness which research each of Research “CJ the opened division in 2015, CJ CheilJedang Center America” we are discovering new in 2016. As such, promisingand business items identifying for and future the technologynew in field the trends of life technology. sciences

project since 2014 to develop ruralproject since the areas of Vietnam cooperation through K-Water. CJ with KOICA and level income farmhouses of the is in increasing CheilJedang by supporting Vietnam, agriculturalNihn Thuan, education, cultivationcontract of chili quality improvement. peppers and sameAt the time, agriculturalthe we are helping villages develop self-sustaining power supporting by with services.environmental improvement micro-financing and CSV PERFORMANCE SME Partners is creating a healthyCJ CheilJedang food industry ecosystem by sharing excellent expertise technological power and with mediumsmall is operating businesses. and CheilJedang CJ basic the on education a Win-Win to Academy provide theories cost, of quality, food environment to safety and supportingSME partners, them with and a low-interest loan service to a scale of KRW 48.2 by raising Win-Win funds billion. develop SMEs competencies the help we addition, In upgrading existing and by ones, products new for launching supporting customized technologies. production same At the time, we visit ourpartners SME a regular on basis a to provide comprehensive field management service that covers quality renewal. hygiene control to introduction HACCP and and Communities Local Farmhouses and promotes agriculturalCJ CheilJedang support in various contract seed and as forms, development, field such guidance cultivation, so to as help farmhouses develop competitive power cooperation through with government the and order In company. the to improve Korea’s agricultural competitiveness,breeds a totalsecured crop of nine have we utilizedand In ingredients them the as for our key products. competencies the farmhouses of addition, we are increasing by visiting cultivation Jincheon, contract farms Island, in Jeju Uiseong, etc. By operating cultivation contract for four crops, alsoare forwe supply aiming stable to and secure demand respectively. company, the farmhousesthe and DevelopmentCSV Project of Rural in Vietnam distribution and Basedour foodon manufacturing working a CSV been on has competencies, CJ CheilJedang 68 Safety management Health & Well-being Awarded by Awarded Korea Commission for Corporate Partnership Academic Society Korean The of Business Administration RobecoSAM, Ethical managementEthical Sustainable Environment Award Index_ Shared Growth Highest level 'Best' Best Company Award Sustainability (DJSI)_ Jones Dow Index Asia Pacific legal compliance To become a global lifestyleTo creating company convenient healthy, happy, Win-win with society the MAIN AWARDS RECEIVED IN 2016 MAIN AWARDS Date 30 June August 26 September 8 CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE will becomeCJ CheilJedang that is a company loved and world the with a business model by peoplerecognized around growth company’s the ensuring co-existence between the social values. competitiveness strengthening By the and of our existing securing growth engines for business the and of business scope to the emerging we willfuture, expand markets. new In addition, with our differentiatedand core willcompetencies, solidify CJ CheilJedang 1 company No. the position in all business. areas of the Most importantly, we will establish ourselves CSV culture, the innovate through culturethe emphasizing lead “Business “CJ Spirit,” thus and Patriotism” of our that meets modern time. demands the STRATEGY CSV IMPLEMENTATION management most fundamental CSV is CJ CheilJedang’s inprinciple fulfilling mission. ourvision and CJ CheilJedang will become a global lifestyle that creates company healthy, by maintaining win-win relationship convenient withhappy, structuresociety compliance encompassing the based on safety also management, by and ethical compliance, and win-win as withcreating society, the shared values, new such well-being. sustainable environment, health and Vision Compliance Core Shared Value 2016 CJ CSV REPORT 82 10 61 1.3 160 547 170 99.7 21.6 89.6 56.4 2016 1,880 1,200 4,818 53,296 153,177 183,285 2 43 77 259 461 209 99.6 24.7 89.8 55.4 1.07 2015 1,201 1,021 4,490 52,224 142,888 162,689 2 56 75 280 331 141 805 100 740 83.8 59.2 1.12 19.5 2014 5,460 45,304 137,982 149,317 354 456 2016 7,556 1,953 1,278 47,124 % % % Ton Ton Unit Days Hour Point Person Person Person Person Person Person tonCO₂eq tonCO₂eq (Unit: 100 million KRW) MillionKRW APPENDIX Male Female 1 Scope 2 Scope Designated General Male Female Total ) *** ) * ) CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV ** 71 Sum of wage, severance payment and other employee and payment of wage, benefitsSum that are severance in cost the sales of sales managementincluded and expenses imposts public of corporateSum tax and cost materials raw of expensesSum on outsourcing and Sharing of Hope Gift Set KEY PERFORMANCES ON CSR ALLOCATION OF ECONOMIC VALUE OF ECONOMIC VALUE ALLOCATION BY STAKEHOLDER * ** *** Category Customer satisfaction rate per hour employeeTraining per expenditure Training employee of employeesNo. completed who integrity education of employeesNo. took who leave parental gas emissionGreenhouse of waste Amount others)(recycling, incineration, landfill, and employeesNew (domestic) employeesNew (overseas) Completion rights rate of human education Health CampaignSales under growth of products for SME partnersField guidance Participation rate of employees’ voluntary service Category Shareholders (Dividend) Employee welfare (wage and Creditors (Interest Expense) CommunityLocal (Donation) Partner cost (purchasing company Government (tax 2016 3,082 3,623 1,253 7,958 (Unit: TJ) REPRESENTATIVE CSV PROJECTS REPRESENTATIVE 2015 2,868 3,275 1,057 7,200 857 2014 2,792 3,012 6,661 CSV MANAGEMENT CSV ENERGY CONSUMPTION CONSUMPTION ENERGY CJ Category Fuel Consumption Electricity Consumption Steam Consumption Total REALIZING THE CO-EXISTING SOCIETY SOCIAL CONTRIBUTION STRATEGIC is promoting volunteer CheilJedang CJ activities based characteristics the on our of business in order to make a lives the impactsubstantial on socially of the neglected. In “Food the Sharing” donated Foodof project have we Bank, 135 billion over KRW past the 19 years.around Also, we organized‘Good-bye the Atopy Camp’delivering with hope Probiotics’‘BYO to childrensuffering from skin diseases, ‘Cooking Class forand Sharing’ to serve freshly cooked children childcare at local food centers. elderly to the and customers’ encourage To participation in food the sharing ’sincerity held the activities, Project’ to deliver CJ CheilJedang a ‘Sharing of Hope Gift Set’ to neighbors in In addition, need. 170 million wasraised around the by KRW, which donated we ‘Mine Water campaign BARCODROP’ over past three the years, Committee to Korean the for UNICEF. OF SPREADING SHARING CULTURE PARTICIPATION EMPLOYEE employees CheilJedang’s CJ willingly participate in various volunteer effort campaigns in services an and to fulfill our corporate social responsibilities. organized Having a voluntary service team fortalent 103 employees donation, participated in wall paintingactivities six times in a year. We also offered a servicepaid employees system which participate through can in voluntary activities during work the As a result, hours. 3,000 employees performedaround of voluntary 10,000 hours service.representative The caring voluntary activities include for elderly, the farmhouses, helping environment the cleaning raised have we addition, In teachers. serving day one as and of 14.8 billion Donors’ CJ Camp,funds KRW through in which 97% of employees participated in regular for donation the sharing education. MINIMIZING ENVIRONMENTAL IMPACT IMPACT MINIMIZING ENVIRONMENTAL MANAGEMENT ECO-FRIENDLY PROMOTING establishesCheilJedang CJ strategies for environment, health itssafety chain, management supply and throughout partners office, our covers head in only and plants not which also overseasKorea, but business sites. operated We have a division exclusively in charge of environment, safety and samehealth at the management time, and, a shared opened growth supporting division in order eco-friendly to spread management to our we are making partners.various As such, efforts to fulfill our environmental responsibilities a as corporate citizen. CHANGE AND CLIMATE RESPONDING TO EFFICIENCY ENERGY IMPROVING manages climateCJ CheilJedang risk change factors that affect its management environment. We are calculating greenhousegas emissions in order to actively annually to global the climaterespond regulations. policies change and of emissionIn 2016, we were 119,000 tons given an cap after verification the activities. of our past reduction We also advanced established map for achieving road a phased energy management. best efficiency on practices We studied global enterprises to applied our internal of advanced and KPI so to efficient ensure as energy and process management at all times. part In 2016, as of our efforts to minimize environmental impacts caused by our overseas we plants, utilized generated husks from fermented the meal soy bean energy source. in an Vietnam as plant OF EFFICIENT MANAGEMENT RESOURCES WATER manages water CJ CheilJedang the resources through with Safety CEO included, the Team Environment and managersplant Energy bussiness the division, for each and CommitteeInnovation participated Safety by Environment and of Directors.Board In addition to real-time analysis of water pollution data, established we have a separate for KPI water costs. particular, In as production managementresource and that uses company beverage watera food manufacturing and sterilize, of to wash increase and the prevents CJ CheilJedang ratewater the of using recycled consumption by expanding reused water. efforts, received and For such CJ CheilJedang A in 2016 CDP Water the Grade Program. 70 DEVELOPING WIN-WIN INDUSTRY DEVELOPING ECOSYSTEM FOOD INDUSTRY ECOSYSTEM DEVELOPING As a leader food of developing the industry ecosystem, opportunities providing for is continuously CJ CheilJedang farmers,growth to SMEs and are our main stakeholders. who competitive the We secure power of SMEs in various ways low-interest education, as of support, service, such loan hygiene quality technology transferand production and control.For agricultural support, and developing are we commercializing seeds with development potential, and securing stablefor demand farming villages contract through cultivation efforts, of ingredients. For such CJ CheilJedang first the became food highest the to company receive level in Index Shared Growth the CHAIN SUPPLY AND TRANSPARENT FAIR MANAGEMENT manages entire the from raw chain CJ CheilJedang supply material to delivery, production mission with purchasing the to “Contribute to profitability company’s improvement and maximizing optimal an growth and by building chain supply with only sign We efficiency.” contract purchasing supply a companies registered ingredient associations to the by each with those passed that have safetyin Korea, and verifications by their respective governments inconducted foreign countries. We also expertise secured chain in supply the management by performing verification analysis and double safety withalong environment inspection. and EXPANDING CUSTOMER-CENTERED CUSTOMER-CENTERED EXPANDING MANAGEMENT is making everyCJ CheilJedang effort safe to provide and toreliable customers. products of origin country the Marking we discloseof food ingredients our source products, the on of food ingredients to customers. safety In addition, the of ingredients is verified a as with legal such documents, certificate of origin or a certificate import of declaration. operatingBy “Employees’ an program, Experience” VOC we collected customers’life product the on cycle opinions advertising, disposal to production, from and planning ranging after sale; a result, as Consumer the we received Centered Management (CCM) certification. 2016 CJ CSV REPORT 324 2016 2,004 2,328 86.1% Food Distribution (Unit: 1 billion KRW) 280 2015 1,792 2,072 APPENDIX 231 2014 1,565 1,795 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 73 Food service at Bear’s club Best, (country Cheongna) Food service (Ho Chi Minh, Vietnam) SALES STATUS BY BUSINESS DIVISION BY BUSINESS STATUS SALES SALES RATIO BY DIVISION IN 2016 BY DIVISION RATIO SALES Food Service 13.9% Business Division Food Distribution Food Service Sales REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ BUSINESS OVERVIEW BUSINESS FOOD DISTRIBUTION Based a systematic on distribution system, CJ Freshway supplies all materials for needed a restaurant business, agricultural, as fishery and such livestock products and to all including appliances, kitchen food dealers, food restaurants, service providers, franchise hotels.general As a market restaurants leader and in the food distribution provides business, only CJ Freshway not also servesbut a totalas solutionproducts, provider for restaurants;offerwe various supplemental services including hygiene, along cooking, service menus, on and education data processing infrastructure. and incubating with franchise foodAs the service industry grows and in both quantity restaurants become largerquality, more chain- and and oriented, CJ Freshway strives more to systematic provide stable foodand distribution servicesindustry an as leader. CJ Freshway is also committed to meeting customers’ diverse countries, such in by developing global many needs sourcing United the States Asia with Southeast along and as Europe, Vietnam. China and FOOD SERVICE (GROUP MEAL SERVICE) BUSINESS Food Service Group’s CJ the in as 1994 our launch Since Business leading Division, continuously CJ Freshway been has Korea’s premium food service market a wide by providing of high-qualityrange items, menu therapeutic- developing introducing itemsdiet menu patients and for cancer dry the system. kitchen systems kitchen including advanced reliableCJ Freshway safe provides food and services, by industry’s the acquiring first ISO 22000 certification and HACCP certification in hospital food by strictly services, and managing (quality, QSC service, cleanliness). CJ addition, In Freshway is exerting utmost the efforts customer to achieve satisfaction; customized provide we services menu using a databaseapproximately of to withkeep up 10,000 menus customers’ food changing culture trends. rapidly and needs entering 2012, CJ Freshway been has Since global the food creating new service and Vietnam, markets in and China of food variousspaces culture through promotional in events cooperation with other CJ affiliates. www.cjfreshway.com Global Food Network Creator services our global based on network and of food products enrich culture with ONLYONE To facilities,production suppliers, logistics customers and 72 VISION & MISSION VISION MISSION VISION & MISSION CJ Freshway envisions to become a ‘Global Food Network strives Creator’ and to accomplish mission the food to ‘Enrich culture services facilities, global the based network on and of production suppliers, products ONLYONE logisticsby providing and year,customers.’ stepping core CJ Freshway further competencies this each end, and current infrasturcture the strengthens To domestic the marketbeyond to become a global a leader TOP Player. in Asia and CJ Freshway, food a leading ingredient food distribution service in company Korea, and is equipped logistics and distribution system food best the channels services to food provide with and advanced to customers. Food The Distribution Business growth by establishing Division continuous is a next- achieving generationlogistics Enterprise system, (ERP) expanding products developing Planning centers Resource and (PB), ‘it’sfor well.’ Private Food In the Service Brand Business Division, domestic the we are leading catering food CJ Freshway culture to was changing trends. diversifyingmarket by upgrading and according menus performances selected best of the a company of its as recognized non-financial efforts and achieving on structure at 2016 ‘ESG evaluation by Korea Corporate Service.’governance Governance 11,871,586 shares Major shareholder CJ Corporation related partiesand 58.65%, othersGeneral 41.35% shareholders and KRW 2,327.9 billion Moon Jong-suk October 27, 1988 Food food distribution service and (group meal service) (HQ) 5th Floor, Center, CJ CheilJedang Seoul, Korea Jung-gu, 330, Dongho-ro, 82-1588-8161 Tel.

Stock VolumeStock Shareholders Sales CEO Date of Establishment BusinessMain Info. Contact COMPANY PROFILE COMPANY 2016 CJ CSV REPORT APPENDIX Interview with Farmer the in CultivationRice Contract Moon-sik Kim Moon-sik Kim Farmer at Hwangdeung-myeon, Korea Iksan-si, Jeonbuk, What changes did you experience through the contract cultivation contract the through experience did you What changes with CJ Freshway? grownI have rice for it’s lastbecoming 30 years, more but difficult each year to make profits of rice cultivation. out difficulty, midst In the of such cultivation contract the carried by CJ Freshway about out out I found no I contract, year.From such for second the contract joined the and longer struggle with selling a big rice market. at the relief It is I such as cultivating on only rice. farming The focus now can environment also has improved. currently am making I rice suggested breed with crop the by CJ Freshway; this breed is relatively less injured by typhoons affected and termites.and dusting For crop the 20% of the aircraft, CJ Freshway pays pestcost control, of chemicals separate and by our from local 50% paid government. Furthermore, after more contract the rice through producing cultivation, more secure from profits. income additional the I can For senior farmers like a pleasing myself, moment it such is now to CJ grow as crops, to distributeFreshway is profits. additional planning Please cultivation. wishes tell your contract regarding the us about returning and of young in number the Regardless increase recent of the farmers, agricultural the industry is still a serious facing problem with aging population.is popular The also cultivatingof type restrained products to that make crops relatively special the higher profits. it Since requires more of labor expensive initial crops, more to cultivate amount costs such and seniorthe farmers participate hardly demanding can in profits. In such situation,farmers disparity the income the among is to occur expected combat this problem, forin To future. near I hope a conglomerate like CJ Freshway to give more attention to farmers, more specifically senior the deliberate constantly over a win-win and businessones, model. If the invitescompany senior farmers cultivation, into potential contract the the social problem caused agricultural by the disparity income partly would be solved while win-win relationship genuine the applying through achieved be would into the knowhow accumulated farming techniques. CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 75 SPECIAL INTERVIEW (As of March 2017) (As of March REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Products Spring AgriculturalCarrots, Frozen Products: Cabbage, Garlic, Chives, Onions, Onions, Carrots, Bell Peppers, Shiitake Mushrooms, Fruit: Frozen Grapes WhiteOranges, Peaches, Mushrooms,Glass Noodles, Canned Canned Bamboo Shoots Crab, CodHalibut, Fish Slices, Pollack Slices, Frozen Shelled Manila Clams, Semi-Dried Pollack Chili Pepper Powder, Pepper, Fruit, Dragon Longans, Fruit, Carrots CashewFrozen Nuts, Rice Paper, Processed Shrimp, Tuna Canned Shrimp, Basa Fish, Mahi-Mahi, Mollusks, Bonitos Durians Fruit,Noodles, Sweet Corn Canned Sauries Hairtails Buffalo Meat Shrimp Grapefruits Oranges, Hairtails Blueberries, Grapefruits, Grapes, Lemons, Oranges, Raisins, Dried Cranberries, Walnuts, Almonds, Nuts: Dew Melons Honey Potatoes, Tomato, Frozen Sweet Corn Nuts, Canned Beef Chicken, Oats Pork Cream,Whipped Cheese Apples Cheeses Butter Tomato (Cirio)Canned Salmon Mackerel, Slices Pollack Frozen Pollack, Frozen Salmon, BlueberriesGrapes, CherriesGrapes, ShrimpFrozen Shrimp,Frozen Squid Beef, Mutton Apples Beef, Mutton Cheese, ButterGouda CSV MANAGEMENT CSV Item Agricultural Products Processed Products Fishery Products Agricultural Products Processed Products Fishery Products Agricultural Products Processed Products Fishery Products Fishery Products Livestock Products Fishery Products Agricultural Products Fishery Products Agricultural Products Processed Products Livestock Products Agricultural Products Livestock Products Dairy products Agricultural Products Dairy products Dairy products Processed Products Fishery Products Fishery Products Agricultural and Fishery Products Agricultural Products Fishery Products Fishery Products Livestock Products Agricultural Products Livestock Products Dairy products GLOBAL SOURCING NETWORK OF GLOBAL FOOD MATERIAL CJ REINFORCING BUSINESS COMPETITIVENESS REINFORCING PRODUCT PORTFOLIO Based global a logistics on network, Freshway CJ stably ‘Beksul,’ ‘Freshian,’ as supplies such representative CJ’s brands ‘TOUS les with JOURS,’ along PB and ‘Haechandeul’ as such food ‘it’s service well’ brands, and including brands rights supply ‘welly the ‘Greenteria’ secured &.’ We have and with competitiveness equipped are hence and of global brands differentiatedin purchasing CJ Freshway continues products. global bases by establishingto expand distribution companies U.S. the in China, Vietnam and Country China Vietnam Thailand Taiwan Indonesia India Africa South Senegal U.S. Canada Germany Netherlands Italy Norway Russia Peru Ecuador Argentina Australia New Zealand Awarded by Awarded Ministry of Employment Labor and Ministry Drug of Food and Safety, Korea Chamber of Commerce Industry and Ministry Drug of Food and Safety project to project senior farmers Award 2016 ESG Best Company Presidential citation Creation” for “Job Certification distribution product hazardous on systemblocking Designation citation Excellent as and Company Sodium Consumption”for “Reducing MAIN AWARDS RECEIVED IN 2016 MAIN AWARDS Date November September June May CSV PERFORMANCE Farmers! Go, Young Promotinggrowth shared with farming villages through districts, cultivationcontract at producing CJ Freshway is target the our of CSV expanding whose competitivepower is forecast to deteriorate due to senior of aging. productivity the order In farmers to increase support industrializationthrough on ultimately, and, to to theircontribute stabilization, income Freshway CJ includes a prescribed of senior number farmers aged 65 or older in the cultivation shares excesscontract target earnings and for improvement. income substantial FreshwayCJ secures price competitiveness distribution the reduce steps we can as of high-quality from large the supply amounts products and cultivation. profits contract the The used to are then increase technologicalcultivation support contract to area the and farmhouses, CJ Freshway strives from which to create a win- level income the of seniorwin structure by increasing farmers. Fresh One isFresh a win-win One distribution business model to provide infrastructure (logistics development) to product warehouse, small medium food material and dealers in local communities to help small medium develop their merchants and and businesses using CJ’s marketing network. In particular, we of distributing capacities reinforce the safe food, through food expiration safety date and inspection management, interest-free for provide a fee of converting funding and food delivery vehicles into refrigerator freezer As trucks. and of food is Fresh to advancement the contributing One such, material distribution in local areas. In addition, CJ Freshway are we handle products ensures 60% of the that more than fromsmall medium suppliers shared and so to achieve as growth with SMEs. the 74 Contract cultivationContract of winter Island in radish Jeju CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE CJ Freshway creates further shared value by being devoted to food of the distributionits business advancement nature, ‘the business.’ We will take a lead in creating value shared across entirethe related value chain to food distribution, through technological support cultivation to farmhouses. and contract STRATEGY CSV IMPLEMENTATION Freshway,CJ distributora quality of food materials and tastya creator food culture, of healthy aims and to grow together society CSV projects through with nation the and that leverage our business characteristics. CJ Freshway carries various activities out from support R&D ranging and cultivationcontract for farmhouses to lump-sum purchasing, dealing; quantity more specifically,fixed pricing and and cultivation’ the ‘contract FreshwayCJ to provides secure stable farmhouses, of income ‘cooking classes’ for local supportchildren’s centers programs food the and to increase safety of SME partners. competency beginning the Since in2017, of particular,and developing been Freshway CJ has implementing opportunities CSV projects that provide new for stable support to creation income senior and farmers whose competitive power is forecast to deteriorate following aging CJ Freshway population. rapidly aimsthe Accordingly, to competitive ensure stable marketing power and routes forperformingby agricultural products of win-win range a activities in a long-term view. 2016 CJ CSV REPORT 4 3 80 85 100 100 57.1 2016 7,502 4 5 82 73 100 100 57.1 2015 5,378 4 2 96 70 100 100 61.5 2014 5,060 - 9.51 2016 2016 6,113.9 1,031,722 % % Unit Hour Hour Person Person 7.42 2015 2015 (Unit: 1 billion KRW) 1,246 4,827.8 Million KRW 622,498 APPENDIX 10,000 KRW 7.50 2014 2014 1,660 4,017.9 724,482 Male Female Ton Ton Unit TOE CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 77 KEY PERFORMANCES ON CSR RESOURCE AND ENERGY MANAGEMENT RESOURCE AND ENERGY PRODUCT PURCHASES ECO-FRIENDLY RESOURCE AND ENERGY MANAGEMENT RESOURCE AND ENERGY discloses FreshwayCJ transparently information regarding management,eco-friendly water usage, waste generation energy managementand of entire In addition, business units. strivewe to establish environmental performance an reward external internal environmental an audit and systemand system. PRODUCTS AND SERVICES ECO-FRIENDLY products eco-friendly to expand FreshwayCJ continues participation services the to encourage of consumersand in efforts environmental impact to of consumption. reduce At samethe time, implemented and set we have out a detailed green policy. purchasing Category per hour employeeTraining per expenditure Training employee per hour employee education Ethical Completion rate of sexual harassment prevention education Completion rate of integrity education of employeesNo. took who leave parental Donation Category of Water useAmount of Waste Amount of Energy use Amount Category Purchases Product Eco-friendly REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Employees’ volunteer service to make Kimchi CJ SOCIAL RESPONSIBILITY IN LOCAL COMMUNITIES performing been FreshwayCJ has volunteer activities on basis on-going an targeting as socially the neglected, such disabled, the children in Through areas. local elderly the and “Cook-deuri,”housewarming a special a program held once visit 2015, CJ Freshway employees chefs since month and homes invite disabled of the neighbors and for In 2016, dinner. approximately 300 employees 40 local children visited around welfarecenters centers and for made disabled, the and five “Sharing of Kimchi the Kimchi” tons through project. In addition, CJ Freshway employees a month served once dinner seniorat Welfare Namsan the as centers,care Center such Center. Daycare for Sindang Senior the Citizens and REDUCE EFFORTS TO IMPACT ENVIRONMENTAL AND POLICY FOR STRATEGY MANAGEMENT ENVIRONMENTAL lineIn with commitmentstrong CEOs’ the towards environmental management,Freshway’s CJ environmental performancesissues and are are reported to CEO and the directors of board reviewedat the promote meeting. To environmentalcompany-wide management, in particular, established FreshwayCJ has environmental strategies provides year goals and for each policies, announces and environmental programs education to all employees a on regular basis. Team, China Team, Team, Vietnam Team, Quality Control(QC) Quality Control(QC) Food Safety Planning Team Food Safety Planning and Safety Team Food Hygiene Food Safety Center Quality Innovation Team Innovation Food Safety Research Lab Research FOOD SAFETY INFRASTRUCTURE REINFORCEMENT orderIn to create safer healthier food and culture, CJ Freshway operates Food the Safety Center. For systematic efficient operationand Food of the Safety Center, we alsohave established Team. Food the Safety Planning Pursuing spirit the First, to “the be Only”, the Best the and Freshway CJ installed (Claim C.S.I. the Investigation) Scene organization an exclusivelyTeam, in charge of on-site claim investigation, for first the time in industry. the In addition, developedwe diagnosisa checklist for food safety system with certification the Lloyd’s, for global agency management aim thus to establishsystem, and a world class food safety system. Freshway CJ reinforces food through safety standards periodic consultation six with foodGroup’s CJ the affiliates. FOOD SAFETY CENTER ORGANIZATION CHART FOOD SAFETY CENTER ORGANIZATION FOSTERING A WIN-WIN ECOSYSTEM ASSISTING COMPETENCY ENHANCEMENT OF PARTNERS CJ Freshway works strengthening quality towards the and safety of our competency partners by comprehensively entire the healthmanaging safety impacts, throughout and fromprocess partner forwarding. In selectionto product management,addition strict to the penalties product are imposedpartners on violatethat Freshway’s CJ internal rules health safety same impacts. At the laws and concerning and time, basis expertise, the on of our competencies and CJ Freshwaypromotes win-win business management to provide food safety related technologies programs educational and to our partners. We support core our partners to enhance competencies necessary for meeting customers’ needs identified VOC system the CJ through in their products. Freshway also programs provides regarding store operations, logistics the on as such system to hygienically manage and R&D. transport food consulting and ingredients, menu 2.4 4.1 5.7 7.5 154 2016 2,328 2,043 1,869 2.4 6.5 5.2 5.3 130 76 2015 2,072 1,869 1,719 (Unit: 1 billion KRW) 6 5 93 2.3 4.6 2014 1,795 1,638 1,528 * CREATION AND ALLOCATION OF AND ALLOCATION CREATION ECONOMIC VALUE Category Direct Creation of Economic Value Allocation of Economic Value Shareholder (Dividend) Employees (Wage&Welfare) and Executives Government (Tax) Creditors (Interest Expense) CommunityLocal (Donation) Partner Cost) Company (Purchasing BUSINESS ENHANCEMENT THROUGH R&D BUSINESS ENHANCEMENT THROUGH CJ Freshway business strengthens competitiveness by R&D Menu promoting Food the Safety R&D through Lab and Center. Researchers Food at the Safety Lab utilize advanced scientifictechnology facilities equipment to conduct and analysis, safety verification environmental analysis of all and imported distributedfood by CJ Freshway including products In addition, environmental analysis isproducts. conducted offered menus the on at catering service restaurants. The R&D Center differentiated worksMenu providing towards development on services and research through and products technologies new food menus, ingredients,the recipes and We also develop formethods for products. utilizingR&D the outcomes in dining services. catering and ECONOMIC VALUE CREATION AND CREATION ECONOMIC VALUE ALLOCATION a sales recorded Having approximately of KRW 2.3279 trillion first the KRW in 2016 as food in the material distribution industry, largest the Freshway CJ secured of trading number external clients in industry. growth the and Such channels entailed job creation large-scale of new following increase the catering domestic overseas clients food and and distribution average The business expansion. of employees number by 288 from previous the increase 3,144 in an 2016, reached the increasing year. In addition, CJ Freshway is continuously to implement donations of amount various support projects for communities. local 2016 CJ CSV REPORT 1,392 1,328 (Unit: 1 billion KRW) 1,220 APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 79

VIPS A Twosome Place 2014 2015 2016 MULTI-COMPLEX BUSINESS MULTI-COMPLEX CJ Foodville’s multi-complex business division launched ‘CJ diverse and business Tower’ ‘N Seoul sites including Group’s CJ Foodworld’,provides that culture dining a space Basedvarious the place. on food-related in one brands store organization capabilities competitiveness and built of businessscope to the over years, the expanded we have major domestic locationsnew of including range a airports, railwaystations, expressway service exhibitionareas, centers majorhospitals, and in addition to ‘CJ Airtown’ at International Airport, food where we provide & beverage and facilities.convenience STATUS SALES REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ BUSINESS OVERVIEW FOOD SERVICE BUSINESS Korea’sof first launch the family Since restaurant in ‘VIPS’ 1997, CJ Foodville Korea’s leading food been has service ‘bibigo’, as global a industry such withself-made brands, ‘Cheiljemyunso’, cuisineKorean brand, noodle a restaurant, first the ‘Season’s Table’, food Korean and buffet restaurant promoting shared growth with farmers. CJ Foodville provides bestthe services customer with a goal to achieve satisfaction. We will to strengthen competitiveness the continue of our growth new secure engines launching by and majorbrands brands. new BAKERY AND BUSINESS such FoodvilleCJ brands, manages variety a wide franchise of les‘TOUS as healthya JOURS’, bakery offersthat breads cakes premises baked fresh the on and using differentiated ingredients, ‘A Twosome a premium Place’, dessert cafe, and Solution’, energetic an bar serving juice ‘Juice healthy Boost with made 100% vegetablesShots fruit. mid- In the to and long-term, strive we to strengthen our competitive power marketing in development order and to product through differentiatedprovide quality tastes to customers. and CJ ‘TOUS lesFoodville’s JOURS’ brand, representative franchise to China, expanded has enteredmarketU.S. the in and 2004 other foreign Philippines Vietnam and the Indonesia, and countries where approximately other 300 storesforeign and countries are operated moment. at the We are accelerating entrythe into overseas markets in order to become ‘global the Bakery’No.1 ‘A Twosome by 2020. is also Place’ raising its competitiveness to global the level, starting with its entry into China in 2012. www.cjfoodville.co.kr Lead the food the Lead service service industry taste and with ONLYONE Foster a food service industry ecosystem by promoting joint growth with partners nurturing talents and Make K-Food a part of people’s daily lives by globalizing food Korean culture There is by oneself. little in meaning succeeding growth with our partners, other and We develop with of each help the nation.local communities the and penness Box Thinking of the ut edication -Food Pride ood Integrity Create Food World of New the Culture - - - K to peopleWe believe appeal all strength in the over world of K-Food the with and K-Food. F compromise not We do services. our strong belief taste in honest and O our goals. communication to reach active We work mind open and with an O foodWe lead the service with trend creative thinking. D - - 78 VISION & MISSION VISION MISSION CORE VALUES K-FOOD VISION & MISSION vision the Under to ‘create world the food of new culture’, CJ Foodville promotes management Group’s CJ philosophy of becoming First, ‘the We also Only’. the food leadthe service Best services the industry and taste and with and ONLYONE develop food the industry ecosystem by promoting joint growth with nurturing our partners talents. Foodville CJ and will work making towards K-Foodconstantly part a of people’s daily lives globalization the through food of Korean culture. CJ Foodville is ‘VIPS’, ‘bibigo’ a global as and food service such that manages company restaurant brands, ‘A Twosome in addition to Place’, les JOURS’, and ‘Tous including brands franchise and ‘Season’s Table’, ‘CJ Airtown’.composite ‘CJ Foodworld’, as and ’N Seoul Tower’ such cultural food spaces, service and spiritWith ONLYONE our technological to prioritize power and differentiated quality, taste and ‘TOUS les as JOURS’, such brands, Especially, the brands. unique CJ Foodville and develops innovative ‘CJ Foodworld’,‘bibigo’, entered have ‘A Twosome global ‘VIPS’ and the market Place’, with 360 more than U.K. CJ Foodville the and continues stores U.S., China, Japan the operating in ten countries including to grow global a leading as food service that promotes company food Korean culture all over world. the Unlisted company KRW 1,391.7 billion Koo Chang-gun 1, 2000 July Food Service, Bakery, Cafe, Multi-Complex Business 34 (HQ) Eulji-ro Tower, Seoul, Korea Jung-gu, Mareunnae-ro, 82-1577-0700 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Sales CEO Date of Establishment BusinessMain Info. Contact 2016 CJ CSV REPORT USA APPENDIX Philippines Malaysia Vietnam Indonesia Cambodia CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 81 Japan REINFORCING BUSINESS REINFORCING BUSINESS COMPETITIVENESS VALUE ENHANCING BRAND ‘TOUS Starting ‘VIPS’ and as with domestic such brands, les CJ Foodville JOURS’, developing constantly been has that meet various the needs brands foods and ONLYONE of customers. trends ‘Season’s and ‘A Twosome and Place’ brand Each lead trends. create markets new Table’ and exerts effort their competitive continuous to enhance Incheon in the at 2015 power. For Airtown’ ‘CJ launched International Airport, Foodville’s CJ were upgraded brands to characteristics the to store new of the models according airport environment, basis the on core company’s of the cultural contents. competencies for and food service brands With differentiated the CJ Airtown contents, No. was ranked Campaign category1 for Marketing and This Year’s at the ‘2016 Airport a prestigious (FAB)’, F&B Awards F&D award CJ Foodville’s world. the for As such, efforts airports around positiveare producing to improve values the of our brands outcomes.FoodvilleCJ 2016, In salada introduced with bar customers to VIPS, providing Food‘World Market’ concept with experience. dining a new Others ASIA South East South China REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Mongolia CSV MANAGEMENT CSV UK Season’s Table ‘PartnershipSeason’s Table with Farms’ VIPS ‘World Food Market’ CJ OVERSEAS MARKET ENTRY CSV PERFORMANCE CJ Foodville’s representative for projects growth ‘shared ‘Partnershipwith partners’ with Farms’ include promoted by to improveSeason’s Table competencies of farmhouses and self-employed ‘Win-win with businesses, Franchises’ and lesTOUS by FoodvilleCJ JOURS. also operates wide a ‘TOUS les as of programs, JOURS Goodrange Bread’ such campaign to children bread welfare to donate centers and Bono ‘Pro otherand Academy’ organizations; Growth ‘Shared for Underprivileged’ the the to middle-aged help the and underprivileged class with employment; ‘Dream Building and Creativity School’ of CJ Donors’ Camp to discover and foster aspiring In addition, CJ Foodville chefs. operates ‘CJ Baking to nurture Academy’ professional bakers in Vietnam, Business spreads thus Patriotism, China, and and Indonesia world. the philosophy around of CJ Group, founding the Partnership with Farms FoodvilleCJ for marketing crop new provides channels difficulty experience that breeds in distribution, through serves which items various‘Season’s Table’, menus using in Korea.seasonal We are expanding ingredients produced by consumption agriculturalthe base Korean of products local white as and gourds such crops, indigenous purchasing cultivation, cabbage, contract through variety eggplants and in level income of to increase the contributing thus and farmhouses. CJ Foodville also a role a bridge plays as between customersfarmhouses and by operating ‘Season’s Market,’ a for agriculturaldirect promotional sales products. channel and StoresWin-win with Franchise CJ Foodville organizes ‘Win- the various programs including joint in order ‘CEO Workshop’ to achieve win Camp’ and In 2016, sensegrowth with in a genuine our franchisees. TOUS les JOURS entered agreement into an of cooperation for shared growth first the as fair trading and in franchise the industry, in order a stable to guarantee business environment promised have We forfranchisees. growthshared with 307 by entering agreementfranchisees into an the to guarantee rights renewal for to years, 20 franchisees’ request contract legal the is double which to from period, refrain allowing and storenew openings within from existing a 500m radius stores.

80 projects toprojects CSV Awarded by Awarded Ministry of Culture, TourismSports and Ministry of Culture, TourismSports and EconomicSeoul Network Moody‘The Report’, U.K. CenterKorea Productivity Korea Army Center Training JEI University Korea Management Association Consulting Ilbo / Chosun The CenterKorea Productivity / National Quality Research Center, University of Michigan MetropolitanSeoul City Ministry Equality of Gender Familyand

that promotes win-win and promotesCSV that win-win and

in KCSI in NCSI st st Korea Startup Awards_ Top award award Top Korea Startup Awards_ Metropolitan Seoul City in the Culture Awards th th in NBCI (National Brand Competitiveness in NBCI (National Brand Index) st MAIN AWARDS RECEIVED IN 2016 MAIN AWARDS (Korea Customer Satisfaction Index) VIPS, 1 (National Customer Satisfaction Index) 65 Award Designation Excellent as Cultural Product Meritorious at Milan Service EXPO Award (presidential citation) 13 CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE implement wellHow for we set and out our main CSV, as business strategy determines our to future become a that iscompany loved people. by As our global business it is becoming moreexpands, important to fulfill our social responsibilities through withco-existence communities. local Based our core on capabilities, CJ Foodville will strive to solve social issues shared growth on withfocusing job creation. partners and STRATEGY CSV IMPLEMENTATION Foodville CJ 2016, In efforts continued has to embed CSV in ‘CSV that contributes to all its businesses by including customers society,’ in addition to making ’stabilization and of Customer Field and Oriented Management’ management a as CJ Foodville thispolicy end, in selected 2014. To has “Shared creation” growththemes the with as “Job partners” of and implemented continuously shared value and solve social issues our core based on competencies. (Trade, Industry and Energy Minister’s Industry(Trade, and Award) 2016_ FAB Awards in marketing the award & campaignTop category 1 tourism category Family EqualityGender Minister’s and Award (plaque of appreciation from president) of appreciation (plaque VIPS, 1 Plaque of appreciation from president the of appreciation Plaque of the Korea Army Center Training Excellent Organization in Industry-Academia- Government Cooperation 2016 CJ CSV REPORT 14 96 52.3 96.3 2016 3,758 1,158 4 50 88 100 934 2015 3,860 0 48 97 90 2014 3,583 1,004 4.2 1.2 318 451 2016 1,392 1,325 % Unit Hour 6.5 0.9 300 420 Person Person Person 2015 1,328 1,265 (Unit: 1 billion KRW) Million KRW APPENDIX 5.2 1.0 272 429 2014 1,220 1,132 Male Female CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 83 CREATION AND ALLOCATION OF AND ALLOCATION CREATION ECONOMIC VALUE KEY PERFORMANCES ON CSR professionalsfield guarantees trainings with and studies and employment.first The class is offered being ‘Uni-Tech’ to in to expand planned selected in 30 students 2016, and about future. the SUPPORT EXPANDING FOR THE UNDERPRIVILEGED CJ Foodville is supporting socially the neglected by performing various sharing activities. les ‘TOUS The JOURS was possibleGood made campaign, Bread’ which through withdirect domestic transactions farms, bread donates one for every two ‘Good sold. Breads’ Until 2016, approximately to children welfare donated been have breads 490,000 centers CJ Foodville country. the across designated has the ‘Good Sharing the as Bread month Friday of each second employees other participated and Day’, in and sharing bread volunteer works by visiting children centers. Using core the business divisioncompetencies of each of CJ Foodville, we organized industry-specific Day’ ‘Sharing Happiness voluntarya service to assist programs,include which Korean wheat farmers, job experience a visit and to N Seoul Tower programs for baristas, patissiers cake developers. and Category Direct Creation of Economic Value Allocation of Economic Value Employees Welfare) (Wage and and Executives Government (Tax) CommunityLocal (Donation) Partner Cost) Company (Purchasing Category per hour employeeTraining of employeesNo. completed who sexual on education harassment prevention Completion rate of integrity education of employeesNo. took who leave parental Donation REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV acquired certificationacquired a family-friendly as from company the Ministry Family. Equality of Gender and WIN-WIN ACTIVITIES PRACTICING CJ Foodville promotes shared growth active through employees, also and but for franchisees assistance only not vulnerable the abroad. unemployed group homeat both and With our expertise in field, the CJ Foodville supports food service-related jointly with job seekers. startups Founded and Ministrythe Labor of Employment to support retired the and soon-to-be the retiredand in their forties fifties, and ‘Start- forUp Academy Retirees’ offers courses educational about starting cafe (beverages), bakery (desserts) pasta (brunch) and forbusinesses. Underprivileged’ Bono the ‘Pro provides with adults training food in the serviceyoung industry and opportunitiesfor employment. also We employement provided opportunities ‘Twosome through Barista’ les ‘TOUS and bakerJOURS’ field training courses experiences. CJ and Foodville, together with Korea the International Cooperation (KOICA), operatesAgency ‘CJ Baking a global Academy’, baking programadvanced company’s the to on pass to developing countries, nurturestechniques professionals assistsand in their employment. This program is operated in China. and Indonesia Vietnam, SUPPORTING LOCAL COMMUNITIES SUPPORTING LOCAL QUALITY JOBS CREATING benefits improve welfare of part-time the To and workers, CJ Foodville strives to create where a workplace all people title the grow We changed happily. of part-timework and employees to ‘staff’ in order to promote their rights, and employeesalso selected per 50 - 80 outstanding year for a scholarship 1 million of part-time When KRW each. workers serve for company in the a set period of time, pass can they recruitment open CJ Group’s at the screening document the gain opportunities forand full-time full-time internship and positions; jobs 250 new over past the three years, around CJ 2016, In route. year from such created been each have team project with Daelim Uni-Tech the Foodville launched University College with a goalof fostering resources human for cooperation cooking. the Developed through among high colleges schools,technical companies, technical and isfive-yeara program educational cultivatesthat ‘Uni-Tech’ CJ FOSTERING A WIN-WIN ECOSYSTEM FOSTERING AN ETHICAL CULTURE CJ Foodville established has comply with high and ethical sustainable growth with society. to achieve In standards order to awareness strengthen ethical of all the executives employees, corruptionand CJ Foodville prevention conducts anti-corruption on education policiestraining and including procedures. We also manage anti-corruption issues through varietya schemes of reporting the enable that unethical of activities Center, Ethics the within as organization, the such our website. on otherCJ Whistle channels and SUPPORTING GENDER EQUALITY forFemale approximately employees 60% of the account total labor Foodville. CJ at force Foodville CJ the received LaborEmployment Minister’s and top award, the Award, for ‘2015 Managementat the Women Award in Korea’, various female-friendly by executing CJ as policies, such employment the promotionReturnship Program and and systemquota for female talents. Furthermore, CJ Foodville EXCEEDING 300 GLOBAL STORES 300 GLOBAL EXCEEDING CJ Foodville’s of number The overseas stores exceeded has Foodville’s300. CJ global300th store is located FFC the at greatMall in Receiving China. responses from customers, this store is operated multi-complex a as where company’s the Twosome ‘A les‘TOUS Place’ ‘bibigo’ JOURS’, and brands, key in order another are located to to effective ensure next one exposure. With a strong beliefbrand food Korean that will take up a major category global in the food culture, CJ Foodville will performmore actively business activities with a sense of pride missionand a global as food service specialist. BRAND ‘BIBIGO’, FOUR RESTAURANT CONSECUTIVE YEARS ON MICHELIN GUIDE CJ Foodville’sIn 2012, the bibigo global food Korean brand first the as Soho restaurant Korean in London was opened in area. In October the its a year since 2013, only food brand was listed Soho Michelin bibigo the opening, Guide on London remained the on first the and as in brand, London Korean list years. food Korean for cultureis four taking consecutive position ‘bibigo’ a food is as recognized genre U.K. and in the a representativeas food Korean restaurant. Frequency 9 times 5 times 4 times a year Once a month Once 4 times a month 11 times a year 82 Title CP Education Improper the on SolicitationEducation and Graft Act Intellectual Property Education InformationOnline Group Security Training Information for Protection Training Employees with Experience for Education Law Chain Labor Standard Store Owners Franchise and Integrity Training COMPLIANCE EDUCATION IN 2016 COMPLIANCE EDUCATION Hosting Department Legal Department Information Security Department HR & General Affairs Department DepartmentAudit GLOBAL ENTRY OF VARIOUS BRANDS ENTRY OF VARIOUS GLOBAL entry the Since of ‘TOUS les JOURS’ into U.S. market the in 2004, CJ Foodville globalizing its continuously been has stores360 that about Currently, fiveof run we brands brands. les‘TOUS ‘bibigo’,JOURS’, Twosome‘A ‘VIPS’, include Place’ China, the U.S., the ‘Foodworld’ in ten countries including and Philippines. the With and 50% Indonesia Vietnam, U.K., Japan, of overseas CJ Foodville stores located in China, CJ Foodville premiumleads food bakery service, markets cafe and in customers of local China. We also captivated taste the buds U.K. with the U.S. and the of countriesin including a number operated food, a ‘bibigoKorean restaurant’ and in ‘Korea the Hall’ ‘Milan at the EXPO 2015’. CJ Foodville will to continue the culture across foodKorean and inspreading way lead the world. LEADING THE GLOBALIZATION OF LEADING THE GLOBALIZATION FOOD CULTURE KOREAN FOOD AND SERVICE DIFFERENTIATION FOOD AND SERVICE As a food & beverage with training R&D equipped school food the service across capacities business sector, CJ Foodville nurturesbest the food service professionals through differentiated systemized a development menu and training system, in order top-quality to provide food service in Korea. FoodvilleThe Center, R&D areacovering of approximately an ft², is largest the 21 thousand inits Korea. of center The kind 140 professional have personnel who withis around equipped hotel-class cooking skills. CJ Foodville also operates ‘Foodville is Korea’s which firstAcademy’, largest the and facility for culinaryfood service training. In addition, CJ Foodville and establishedhas operated ‘Foodville and to Busan Academy’ Foodville‘China promoteand growth shared with franchisees, shared achieve toAcademy’ transfer global and capacities growth with strategic partners. 2016 CJ CSV REPORT 2016 2,433 1,752 1,897 6,082 20.5% 35.6% 38.0% 41.3% 44.1% Division 40.0% CL Business Market share 2015 2,141 1,496 1,418 5,056 (Unit: 1 billion KRW) (Unit: 1 million pieces) 288 535 617 750 904 APPENDIX 2014 2,026 1,249 1,286 4,560 Quantity of cargo collected by CJ Logistics 1,406 1,501 1,623 1,816 2,047 Domestic quantity CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 85 STATUS SALES DELIVERY DOMESTIC PARCEL MARKET SIZE GROWTH SALES RATIO BY DIVISION IN 2016 BY DIVISION RATIO SALES Global Business Division 31.2% Express Delivery and Parcel Business Division 28.8% Business Division CL Business Express Delivery and Parcel Business Global Business Sales Year 2012 2013 2014 2015 2016 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ BUSINESS OVERVIEW (CL) BUSINESS CONTRACT LOGISTICS CL Business Division is comprised of TPL (Third Party Logistics), stevedoring, marine other transportation and experience business With areas. additional accumulated a state-of-the-art IT system,and CJ Logistics provides differentiated customized services and by industrial sector, from storage stevedoringranging to transportation and and delivery. Presently 1 position maintaining No. the in Korea’s CL market, CJ Logistics largest the secured has infrastructure most the up-to-datein Korea by applying logistics system, to various customer responding is thusly with needs and industrialequipment specialized sector. to each DELIVERY BUSINESS / EXPRESS PARCEL direct-management only By the largest the organization and delivery of number personnel in Korea, CJ Logistics leads a paradigm express shift delivery and parcel in the industry on basisthe of our state-of-the-art logistics technologies and in highest the regarded are as infrastructure, which standard industry.the a smart In addition, we provide service, which anywhere. anytimecustomers and conveniently access can CJ LogisticsAs such, lead in taking the global is actively position No.1 the market in beyond Korea. expansion BUSINESS GLOBAL professional Based worldwide the and experience on engineering company’s competencies of the developed out infrastructure, Global the Business a total provides logistics solution equipment transportation covering from inland and installation air freight global in the field and ocean to the transportation. For this, CJ Logistics is promoting and overseas the Asia, business in Southeast China, expanding Europe, centering America South and CentralU.S., the and delivery, local parcel on border transportation, steel transportation, logistics project stevedoring services. and freight The forwardingbusiness is intodivided airfreight and freightocean forwarding. CJ Logistics total the is providing logistics service of transportation by combining range a wide means. www.cjlogistics.com arket-oriented ccurate eliable echnology-based peedy & Safe The GlobalThe SCM Innovator comprehensive provide all service world areas of SCM to the customers and across To around maximize innovation. and customer change continuous value through Design optimal an SCM to deliver valuable assets to customers worldwide a timely, on basis. convenient safe and 5 LogisticsGlobal Top Company Sales of 25 trillion KRW, Operating profit of 1 trillion KRW, 65% Global sales portion, Operating profit KRW 1 trillion, Global sales portion 65% S M A R T 84 SMART VISION & MISSION VISION MISSION 2020 GOAL CORE VALUES Be VISION & MISSION vision the to CJ Logistics become Global ‘The achieve SCM Innovator’, To comprehensive provides entire the service across logistics networksupply to customers world. the continuous In addition, through CJ Logistics innovation, process all around maximizes value of all the customers. Moreover, we carry business with a goal out top to of the 5 global become logistics one companies by 2020. Established inNovember 1930, CJ Logistics is Korea’s 1 logistics No. providing company optimizedan one-stop logistics solution basis the on expertise of our technologies and built over perioda long of time. logistics, contract main Our delivery, businesses parcel include forwarding, international courier, stevedoring, project logistics transportation and services. global customers providing “Global the SCM Innovator” as with differentiatedWe are advancing and comprehensive logistics innovation. service continuous through 22,812,344 shares (20.08%), CJ CheilJedang KX Holdings (20.08%), National Pension Service (7.03%) KRW 6081.9 billion Son Park & Gwan-su Geun-tae November 15, 1930 Logistics,Contract Delivery, Parcel ForwardingInternational& Courier Service, Stevedoring & Transportation, LogisticsProject Service (HQ) CJ Logistics Co., Building, 53, Seoul, Korea 9-gil,Sejong-daero Jung-gu, 82-2-1588-1255 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Shareholders Sales CEO Date of Establishment BusinessMain Info. Contact 2016 CJ CSV REPORT APPENDIX Features Developing Dongtan Flagship Center for CPG (approx. Yangji 198,347㎡) and Flagship Center for (approx. apparel 213,223㎡) Gross area 300,000㎡, storage warehouse 110,000㎡, processing 1.7 million cargos a average on day deliveryReducing time, swiftly handling / direct purchase reverse purchase cargo Site 100,000㎡, approx. approx. building 50,000㎡ Site 37,000㎡ approx. Features centersMega hub per industrial sector based on largest-scalethe automation infrastructure in Korea Asia’s largest mega hub terminal / Orienting high- facilitytech with applied technologies,convergence IoT and robot as such International courier service center with high- equipped logisticstech facilities, automatic an freight including sorting high- system and imagingspeed x-ray system Flagship Center-Shenyang centerBuilding hub for Northeastern region based Auto-Partson Cluster FlagshipShanghai Center- centerBuilding hub for Southeastern region centering CPG on and CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV Completion Completion Schedule Scheduled for 2018 2018 June 2018 March December 2017 2018 March 87 FUTURE-ORIENTED LOGISTICS BASES FUTURE-ORIENTED LOGISTICS Field CL Parcel delivery Forwarding Global EXPANSION OF LOGISTICS INFRASTRUCTURE OF LOGISTICS EXPANSION CJ Logistics with isstate-of-the-art equipped logistics frominfrastructure logistics ranging transportation bases and vehicles to logistics vessels, equipment, terminals and stevedoring instruments. In order top to of the 5 become one global logistics companies, CJ Logistics is establishing flagship facilitiescenters world the with developed advanced across technologies.from convergence REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Technology CJ Logistics automation secured has technology for operating improvement, efficiency convergence-based robot operation intellectual technology technology and unmanned logisticsbased on support information algorithm. and Engineering Optimal operation accurate models enabling prompt and decision making are designed efficiently scientific through systematicand approaches. System & Solution CJ Logistics a customized provides IT service specialized to industrial sectoreach by optimizing logistics services and services.realizing value-added CJ REINFORCING COMPETITIVENESS TES COMPETENCIES STRENGTHENING Engineering,TES (Technology, System & Solution) is CJ Logistics’ core competencies developed for response a rapid logistics changing to the market environment. With CJ TES, Logistics is global the leading logistics paradigm. CJ Logistics improvement efficiency and is to productivity contributing optimizedby providing logistics solutions SCM and through TES-based the industry specializedconsulting and to each service. consulting In particular, convergence TES the Center,Innovation base for CJ Logistics’ TES, advance current state the technologiesshows of TES convergence in preparation for fourth the industrial is revolution, set which to a smart system. and transport packing drones robots, include logistics verify develop and We also advanced continuously technologiesinnovation a smart to provide logistics service to customers. TES, CJ LOGISTICS’ CORE COMPETENCIES TES, CJ LOGISTICS’ business,CSV Awarded by Awarded Ministry of Trade, Energy Industry and National Police Agency Korea Institute of Service Industry Korea Management Association Consulting Korea Productivity Center Ministry of LaborEmployment and Korea Management Association Consulting Korea Management Association Consulting Korea Management Association Consulting Award Energy Minister’s IndustryTrade, and for meritoriousAward service in partnership celebrationat the 1st of the anniversary of Korea-Chinathe FTA in corporate the award social Top categorycontribution 1st at the Korea Crime Prevention Award Chairman’s from Planning, Future Award Communications and Broadcasting Science, Committee 11th Korea at the Social Contribution Award delivery 1 in parcel No. the service category, Korea Customer Satisfaction years) (KCSI) 2016 (8 consecutive Index competitiveness 1 inNo. brand in the personal delivery parcel service category, CompetitivenessNational Brand Index (NBCI) Selected of excellent company as labor- management culture by Ministry of LaborEmployment and 1 in internationalNo. the transport service category, Recommendation Korea Brand (KBRI) Index delivery parcel 1 in the No. service category, (K-BPI) Power Index Korea Brand 1 in generalNo. the logistics service category, Most‘The Respected Company’ in Korea MAIN AWARDS RECEIVED IN 2016 MAIN AWARDS CSV PERFORMANCE Logistics CJ isefforts dedicating to fulfilling our corporate social responsibility CSV management through with a goal to ‘Businesspractice Patriotism’, philosophyCJ of founding the in solving way the leading been we have 2013, Since Group. unemployment, major by aging as social and issues, such making useactively of our core business competencies and infrastructure.Logistics’CJ The representative Delivery ‘Senior as Parcel known Service’, contributed to sustainable job creation in preparation for aging the basissociety, the on governmentof the - enterprise - local government cooperation promoted been system, has which first the as in industry. the same At the time, by using the senior delivery parcel service bases, CJ Logistics is promoting deliverya short-distance life service and center project to create high-qualitycontinuously jobs for senior citizens. Date December December December October August July June March February 86 Shared Growth Business Values management to create Advance business model Advance Reinforce business competencies Expand targets of business benefitsExpand - - - Core Values Eco-friendliness Strategic Direction based on the core the based logistics on expertise competencies and Social Values Social Job CreationJob business, has set out job creation, eco-friendliness and creation, job set business, has and eco-friendliness out Create social differentiated / business value through CSV business model local communities Contribute to development the of Realize green logistics Create jobs for underprivileged the CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE CJ Logistics strives most the reliable to become best the and partner creating by customer business reinforcing value and competitiveness.performing For this, continuously are we CSV activities for shared growth with major stakeholders, customers, including shareholders, local partners and communities. In particular, is company efforts the dedicating to creating business ‘Senior values Delivery the through Parcel Service’, its representative same CSV project, at the time as creating part taking shared value in by actively resolving social issues. STRATEGY CSV IMPLEMENTATION LogisticsCJ is promoting CSV business values basis the on of itssocial and core logistics business ‘CSV infrastructure. The competencies and is in charge which company’s Management of the Team’, CSV joint directionsthree growth the as promotion. CSV of We operating discovering on are focusing differentiatedand CSV businessmodels strengtheningby cooperation with related the departments. LogisticsCJ also continuously participates in volunteer services to to the contribute development of local communities.

- - - 2016 CJ CSV REPORT 1 73 39 91.5 98.2 99.1 0.17 2016 3,818 94 97 10 46 84.6 98.5 0.21 2015 3,169 7 80 99 43 81.9 98.0 0.39 2014 2,507 21 21 36 37 59 238 158 320 130 2016 2016 1,214 60,633 49,523 133,743 134,957 195,574 130,036 % % % 32 21 46 66 Unit Hour (Unit: tCO₂-eq) 211 895 370 311 140 2015 2015 Person Person 1,268 53,585 55,612 119,276 143,982 145,250 200,862 MillionKRW APPENDIX 10,000 KRW 19 22 36 45 50 362 198 307 100 2014 2014 1,494 51,995 62,368 133,765 139,178 140,672 203,040 ㎘ ㎘ ㎘ ㎘ ㎘ ㎘ ㎘ Ton Ton Male Female Unit mWh 1,000㎡ Stationary Combustion Mobile Combustion Subtotal Electricity City Gas LPG Kerosene Diesel Fuel By-product Diesel Gasoline LPG MGO B-A Electricity CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 89 KEY PERFORMANCES ON CSR OF GHG EMISSION VOLUME CONSUMPTION ENERGY Category Direct Emission 1) (Scope EmissionIndirect 2) (Scope Total Category Stationary Combustion (Operation) Mobile Combustion (vehicle, heavy equipment, ship) EmissionIndirect Category per hour employeeTraining per expenditure Training employee Completion rate of integrity education Completion rate of sexual harassment prevention training of employeesNo. took who leave parental Donation rate Accident REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Planting event forPlanting event “Nurturing Energy Forest” CJ GHG INVENTORY SYSTEM OPERATION GHG INVENTORY CJ Logistics is operating a GHG management system to calculate energy the consumptionin all of our business sites automatically estimateand GHG emissions. the a monthly On of energy basis, consumption in business amounts the other electricity, as energy activities, fuel and vehicle such registered, are consumption amounts while statistics the managed. In addition, we are responding and are analyzed to emission the goal management, following national the goal management energy system greenhouse of gas and consumption. ACTION SAVING ENERGY CJ Logistics education organizing eco-driving is continuously programs in order to improve driving the habits that cause vehicle excessive sudden as energyconsumption, such engine idling. Furthermore, stopstart, and acceleration and participatewe actively in saving energy consumed from lightingheaters buildings. and the of promote We devices of electricity reduction the consumption by installing and existingreplacing lighting withLED lighting electrodeless and lamps in all logistics center buildings. SOCIAL RESPONSIBILITY ECO-FRIENDLY ACTIVITIES CJ Logistics is performing volunteer activities to help value of environment. the communitieslocal understand greenhouse emissions reducing been 2013, we have Since by implementing ‘Energy the Forest’ with project Korea Expressway Corporation Korea Forest and Service. CJ Logistics is in also environmental active protection in urban local communities and beekeeping urban through afforestation projects to develop forests in city the area. PRACTICING ETHICAL MANAGEMENT PRACTICING CJ Logistics performs of activities range a wide to importance the help employees of ethical understand management. established We have decision-making and forbehavioral employees standards ‘ethical developing an by a ceremony held to pledge and compliance of conduct’ code basis, a monthly a year. On CJ once withcode ethics the Logistics a ‘CJ Logistics’ sends Newsletter to all of Ethics’ employees employees the so to as provide with on education infringements. guidelines action ethical and same At the time, targetingwe organize of Ethics’ ‘CJ Training employees. new businesspractices, eradicate unfairoperation and To handling LogisticsCJ operates ‘Cyber the Monitoring the Center’ and ‘Holiday Gift Return Center’. GREEN LOGISTICS OF ECO-FRIENDLY IMPLEMENTATION LOGISTICS CJ Logistics establishes selects and plans loading cargo vehicles in considerationtransportation of and routes fuel environment, consumptionthe so and to as reduce greenhouse gas emissions course in the the of occur that comprehensive logistics maximize business. To energy we additionally promoteefficiency, a modal shift converting transportation inland to railway transportation. for As delivery parcel the business,Logistics CJ is continuously motor equipment, administering eco-friendly introducing an electric delivery eco- pilot truck expanding operation and delivery parcel friendly services. same At the time, we are striving to improve by our company image eco-friendly an as installing high-efficiency lighting existing in and logistics new to governmental responding center regulations, buildings and energy consumption greenhouse target as gas and such management. 88 Wheelchair Repair Service FOSTERING A WIN-WIN ECOSYSTEM FOSTERING A WIN-WIN COURIERS SUPPORTING OUTSOURCED for aid LogisticsCJ 2012, Since financial providing been has couriers of children have of outsourced education who the worked with for company the year. a Moreover, more than CJ Logistics’operated been Bus’ has Checkup ‘Medical employees the couriers 2013 forsince outsourced the and importance the recognized In addition, having of agencies. of partners best the in service providing to customers, CJ Logistics is developing a welfare system to foster excellent shared growth with them. achieve couriersoutsourced and COMMUNITIES LOCAL CONTRIBUTION TO CJ Logistics is performing various volunteer services for disabled,the ‘Hope the seniorchildren through citizens and Sharing Corp.,’ Volunteer participated by all employees. As wheelchairs clean example, to improvean we repair the and mobility disabled of the participate actively every and month, box deliveries service smart education about and in lunch for elderly the livingphone CJ Logistics alone. is also to job creationcontributing for senior citizens by operating a Senior Cafe. Forest In addition, the Program Experience learn the childrenhelps develop good a and moral character importance of environmental protection. We also a blood hold to assistance local a charity to provide bazaar and donation communities. 2016 CJ CSV REPORT 55 73 485 856 2016 3,161 1,692 1,096 2% 54% TV Others 58 74 (Unit: 1 billion KRW) 483 745 2015 3,056 1,696 1,119 APPENDIX 75 61 , a joint with venture, the 570 640 * 2014 3,176 1,829 1,277 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 91 2% 27% * 15% Based on a separate financial statementBased a separate on financial BCJ operates exclusive in form the section an for products Korean Alibaba by the Group. run Suning of a flagship and Tmall, as store, Jingdong such this, to customersThrough we deliver products value the of Korean in China. SALES BY CHANNEL SALES * SALES RATIO BY DIVISION IN 2016 RATIO SALES Catalogue Mobile PC OFFLINE STORES services cable through In addition to selling and products offline is stores expanding O Shopping CJ broadcasting, where trycustomers products the out and experience can TV. Starting seen have on they with Air’ ‘Style the On been has in Shopping O CJ 2014, store in Incheon opened itsaccelerating offline omni- business. the We are reinforcing service sixth of the opening by the offlinechannel store at Busan Premium in October Outlet last year. SITES GLOBAL global the 1 home as No. shopping is advancing CJ O Shopping value, by entering that createscompany shopping new Philippines the Malaysia Mexico, following and Turkey, the CJ Thailand. and markets Vietnam, Japan in China, India, products a variety introduces of K-brand O Shoppoing to overseas markets with along Korean-stylethe home service broadcasting named ‘shoppertainment’,shopping and creates for Wave’ ‘Korean the home shopping. accordingly In August BCJ 2016, we opened * Channel Volume handled - TV - PC - Mobile - Catalogue - Others Sales Alibaba Group’s partner “Baozun,” and thus commenced an commenced thus an and Alibaba partner Group’s “Baozun,” e-commerce solution business in China. REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ BUSINESS OVERVIEW TV HOME SHOPPING Based our position on online a leading as retail platform, image,consumers’ strong brand TV Home the trust and Division is and developing Shopping of CJ O Shopping internet as and such operating channels, online shopping developed into has which CJ O Shopping, catalogue shopping. a total is providing online company, on focusing media shopping differentiatedcompetitive and products services at reasonable customerprices by placing satisfaction top the priority. on T-COMMERCE a customer-centered, is providing CJ O Shopping interactive Plus’, a service ‘CJ O Shopping data through shopping in operation been has that T-commerce May since channel VOD services, Plus’ enables2015. Through ‘CJ O Shopping customers time, at any to select in popular addition products also CJ O Shopping broadcasted. currently being to products SMEs by operating supports a growth the found of newly category VOD special to exclusively promote products SME commission.without ONLINE MALL mall, onlineCJ Mall, offers shopping an customized services by operating a variety of specialized malls social that provide commerce, figures. fashion, travels and baby products, Furthermore, environment we improve and shopping the exposure the price of special to increase as designs, such customers’ through analyzed popular products and products big data. MOBILE SHOPPING Usingmobilea provides mobile a application, Shopping CJ O service that is limitedshopping not The by time space. and through introduced are SNS the on mostpopular products CJ weekly live inthe mobile As such, broadcasts shopping. challenges new on taking and is continuously O Shopping innovation. striving to achieve CATALOGUE distributesCJ O Shopping over million one copies of a booklet information containing shopping for sale. products on catalogueThe improvesit customers’ as helps convenience customers with ease. products the through browse www.cjoshopping.com Trendy LifestyleTrendy with Shopper Value is that company best the onlineCJ O Shopping shopping lifestyle. trendy leads the Global Lifestyle Company Merchandising services and By offering products ONLYONE lifestylesthat lead trendy diverse through multi-media platforms, experience strives shopping CJ O Shopping enjoyable to provide value world. to the customersand around 90 VISION & MISSION VISION MISSION VISION & MISSION services lifestyles that lead trendy and By offering products diverse through ONLYONE multi-media platforms, CJ O Shopping is CJ O Shopping this end, value world. to the customers To and strives experience around shopping enjoyable to provide committed to becoming a global lifestyle volume with company a handling merchandising of 10 trillion by 2020. As the first TV home shopping company in Korea, CJ O Shopping has advanced as the best the as general online firstAs the advanced has in company Korea, TV home CJ O Shopping shopping in line with channels shopping its business and areas expanding by continuously company media shopping mobile as technological development, commerce social high- commerce. such produces and CJ O Shopping quality programs home high-tech infrastructure, shopping using broadcasting operates five studios and a state-of-the-art logistics call center center for and commerce, optimized provides electronic and shopping to customers’experiences according lifestyles. home Korean the introduced In 2004, CJ O Shopping of business in scope the the expanding been we have then, China. Since business to , shopping Malaysia in 2016. in in 2015 and 2012, Mexico in in as Vietnam 2011, Thailand global market, such 6,215,518 shares CJ Corporation 43.33% including the largest related parties shareholder, and KRW 1,095.9 billion Min-heoi Heo December 16, 1994 Broadcasting (HQ) 870-13, Gwacheon-daero, Seoul, Korea Seocho-gu, (Logistics Center) 20, -ro 47beon-gil, Gunpo-si, Gyeonggi-do, Korea 82-2-2107-0114 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Shareholders Sales CEO Date of Establishment BusinessMain Info. Contact 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 93 STABILIZING OVERSEAS BUSINESS OVERSEAS STABILIZING enteredHaving overseas the in China market in Shanghai, first the 2004 as in Korea’s industry, home CJ O shopping is currently performingShopping global the business stage, on Malaysia. and Mexico in Thailand, Vietnam, China, as such overseasMost O Shopping’s of CJ platforms are showing CJ in Tiantian CJ and growth.even In particular, Dongfang as ACJ in Philippines the China,in SCJ Vietnam and are recording overseas volume handling surpluses, annual CJ O Shopping’s trillion2 exceeded KRW for first the time.April In we 2016, established TV home a Malaysian shopping ‘CJ WOW Shop’, program home the broadcasted shopping and company, to seven million four TV public through a day households same at the time,channels; we started mobile online and services. signed MOU In October an 2016, CJ O Shopping largest the withmall ‘Lazada’, Asia, in shopping Southeast and in Lazada. shop-in-shop a Shop’, Mall ‘CJ the Brand opened through soldMallCJ the at and products Korean Among those optimized channel, CJ’s TV home to local shopping consumers Starting country. are distributed with to each to gradually plans CJ O Shopping products, beauty living and miscellaneous to fashion and items. products the expand SERVICES CUSTOMER-ORIENTED PROVIDING that customerRecognizing satisfaction is a prerequisite to tries customergrowth, CJ O Shopping to achieve satisfaction onlinein the distribution market where competition is intensifyingwith differentiated services. May In and products ordering2016, we started Order’, an service using ‘Talk wasIt implemented Talk. in order to more ensure convenient for customers, shopping mobileof following increase recent a curator’ to a ‘shopping as shoppers. This service functions help customers to go through having without shopping enjoy a complicated is processes. In addition, CJ O Shopping strivingto maximize operatingby customer convenience ‘CinderellaDelivery’, Quick same-day a delivery service, ‘CS online community an forSquare’, communication between ‘Daily delivering VOC’ and consultants, merchandisers and customers’ management to opinions the e-mail. through REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ WOW Shop CJ REINFORCING PRODUCT AND SERVICE COMPETITIVENESS BRAND EXPERTISE ENHANCING PRIVATE since products private developing own Continuously brand is discovering 2000s, CJ O Shopping of the beginning the differentiated and trendy while examining actively products M&As for power with reinforcement along the of product fostering In 2016, we developmentthe and brands. of new a kitchenware brand, of ‘Odense’, products new the launched a total lifestyle Wang’, ‘VW Vera in addition to the and brand, a fashion of ‘Sep’, a cosmetics and brand renewal launching Michel Jean also launched ‘Celeb CJ O shopping Shop’. brand our online through channel golf a casual Basquiat, wear brand, at our offline and store, TV home shopping ‘Style including most been has actively Shopping CJ O Air’.On As such, performing business in home the private the shopping brand industry. DIVERSIFYING PROJECT PROGRAMS viewers provide contents, of enjoyable withrange a wide To started a programCJ O Shopping Night ‘The Manias’, of the first the as targeting specific of fans brands TV the in the ‘Lowest-pricewhich industry, Outlet’ home and shopping viewersprovides products opportunity to with purchase an same at the at lower prices time, and, helps SMEs reduce their inventories. been April has Since 2016, CJ O Shopping airing “SME as programs new latest reflect which such trends, Meal’, House’, ‘CelebPremium ‘The ‘A Special Products’, Plus’, and ‘SportsShop Show’ ‘House ‘Eating World’, Show’, Plus’ so to further as Shopping O ‘CJ through Talk’, ‘Trend also to promote enjoyment consumers’ and shopping enhance shared growth with their SMEs by publicizing products. 4.3 1.4 2016 190.7 4.5 1.7 2015 185.7 (Unit: 1 billion KRW) Awarded by Awarded Korea Management Association Consulting Korea Exchange Ministry of Health and Welfare 5.0 0.7 2014 193.8 1 Village - 1 Flagship Product 1 Company - 1 Flagship Product Award category 1 in TV homeNo. the shopping at years K-BPI for 11 consecutive Excellent Company for KOSDAQ Market Posting WelfareHealth Minister’s and Citation at the Sharing ContestNational Welfare Social and (meritorious service for corporate social contribution) VW Fashion VW Fashion PERFORMANCE ON MARKETING CHANNEL SMES SUPPORT TO RECEIVED IN 2016 MAIN AWARDS Category Domestic Overseas Date March March October Supporting to Access Overseas Markets is supportingCJ O Shopping overseas the market entry of SMEs by utilizing global networks the home shopping established 10 regions in CJ O 9 countries. across The export subsidiary,Shopping’s entered CJ IMC, recently into an exclusive distributorship agreement American for South the Nyun, PN Poong Hurom, market with Korea’s SMEs including LIU & COM, etc. In November Songhak, Happycall, 2016, we operated ‘Market for the Development Vietnamese Team interested the provided Home and SMEs with Shopping’ market information opportunities for and with consulting Vietnamese same At the SCJ buyers. TV home shopping time, Pairs ‘Matching the Program’, through we introduced China to the excellent located in and Vietnam manufacturers quality to the contributed partnersSME improvement and of their partners management process by providing services and guidance. technical 92 and realize growthshared through and CSV CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE strivesCJ O Shopping to become for recognized a company sincerity complying by legal with social norms regulations and carrying industry-specific out by constantly activitiesand for sharing. Utilizing growthshared and core competencies, O CJ will practice Shopping supporting rural enterprises SMEs with domestic and and overseaswillWe marketing in creating way lead the channels. a healthy distribution industry ecosystem, by strengthening communication withtrust continuously our partners and and culture the of joint growth.building STRATEGY CSV IMPLEMENTATION CSV efforts CJ O Shopping’s are geared utilizing towards competencies for shared growth with rural enterprises and social values by supportingSMEs. We create and economic to domestic themoverseas with access markets and through our shared growth programs. CSV PERFORMANCE Supporting Domestic Marketing Channels orderIn to support rural villages with SMEs their and started CJ O Shopping commission- the marketing channels, service,free broadcasting ‘1 Village - 1 Flagship and Product’ ‘1 Company - 1 Flagship first in the 2007 as Product’, in the industry. home Aprilof As shopping Shopping O CJ 2016, March Since hours. broadcasting 1,000 accumulated recorded our support2016, we further for farmhouses expanded programs, SMEs by additionally the broadcasting aired and in a T-commerce TV home the through shopping, channel provided Plus’. In addition, CJ O Shopping ‘CJ O Shopping programs educational 70 distribution,on about marketing and service to rural thus enterprises respectively, SMEs and and profits of approximatelyrecorded 4 billion the through KRW sale of SME products. 2016 CJ CSV REPORT 3 - 35 204 25.6 98.9 65.4 2016 5,905 97.68 4 3 24 193 65.1 92.0 96.9 28.6 2015 9,687 1 3 29 257 97.4 97.6 96.4 24.4 2014 7,033 3.5 5.9 203 429 15.1 43.7 2016 2016 2016 1,096 120.4 1,480 3,028 3,457 35,337 % % % 5 Unit Hour Hour 9.7 121 15.1 38.8 (Unit: tCO₂-eq) Person Person 172 2015 1,119 363 2015 1,454 2015 (Unit: 1 billion KRW) 2,974 3,337 35,914 MillionKRW APPENDIX 10,000 KRW 7 12 7.1 54.5 2014 1,277 123.6 179 2014 1,434 379 38,651 2014 2,933 3,311 Male Female Ton Unit 1,000 N㎥ 1,000 kWh CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 95 KEY PERFORMANCES ON CSR CREATION AND ALLOCATION OF AND ALLOCATION CREATION ECONOMIC VALUE AND RESOURCE USE AMOUNT OF ENERGY GHG EMISSIONS Category per hour employeeTraining per expenditure Training employee Completion rate of integrity education Completion rate of sexual harassment prevention training of employeesNo. took who leave parental Rate of female above) Manager leaders and (Team Donation per for of hours No. education employee ethics Category Direct Creation of Economic Value Shareholders (Dividend) Employees Welfare) (Wage and and Executives Government (Tax) Creditors (Interest Expense) CommunityLocal (Donation) Category Electricity LNG SewerageWater and Supply Category Electricity LNG Total REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV The FirstThe Raising Program Home TV Fund Linked to Donation Social Shopping FirstThe Raising Program Home TV Fund Linked to Donation Social Shopping CREATING AND ALLOCATING AND ALLOCATING CREATING ECONOMIC VALUE sales to salesCJ O Shopping’s the are categorized according TV, catalogue, as internet, such others. mobile and channel, categoryEach is againclassified sales, intoproxy product othersales sales. and total The sales in 2016 were 1.0959 trillion created the value was allocated to KRW, and the stakeholders. CHANGE CLIMATE COMBAT EFFORTS TO strivesCJ O Shopping to minimize environmental impacts caused during logistics the deliveryand processes. We also to customers help products consider eco-friendly introduce Employees use and products. and buy environment they as take partexecutives in saving energy by maintaining the indoor temperature appropriate at work sites using and automatic turn-off systems for office lighting during lunch late nights. and hours CJ IMPLEMENTATION OF ETHICAL IMPLEMENTATION MANAGEMENT established has CJ O Shopping fairness ‘compliance, and three core the values as conduct of of our code transparency’ for strived management ethical to and strictly practice employees have management.compliance To pursue management trusttransparent fairness that builds for and shared growth of stakeholders, annually CJ O Shopping management ethical the withprovides along the education, pledge ceremony to implement of ethics. of code code the and tries transparent In addition, CJ O Shopping to achieve partnership mutually-developing fair sharing by and trade managementour ethical policy with partners, CEO’s via the holiday greetings report the e-mail suggestion / and section of our website during national holidays every year. COMMUNITIES SUPPORT FOR LOCAL AND THE NEGLECTED performsCJ O Shopping various volunteer activities to share warmth with communities. local employees The visit Senior Bangbae Citizens the Welfare the Center and Caritas Community Bangbae Center located office the near participate they in sharing food and, withbuilding; the neglected neighbors, facilities, the cleaning charity holding deliveringbazaars, sharing kimchi. 2016, In briquettes and 200 employees participatedaround sharing the in spreading smart caring on for education cultureproviding by phone, newborns, looking after stray eco developing dogs and using recycled designs to activity create products new (an leather). Usingfabric characteristic the and of our business raised distribution,in has broadcasting funds CJ O Shopping Raising assisted Program TV Fund and through socially the neglected with medical expenses since their living and first the as Shopping, O CJ 2016, May In in2004. Korea’s industry,home carried social using shopping donation out SNS by reflectingcomments shares in smartphones and and latestthe SNS Sharing the Campaign Through trend. donation tosupport foster foster recruit homes and mothers,around raised5,000 Internet donations CJ O Shopping users and to 25 millionamounting KRW. 94 FOSTERING A WIN-WIN ECOSYSTEM FOSTERING A WIN-WIN GROWTH SYSTEM FOR SHARED PROMOTING established Shopping O CJ Department Win-win the Growth programsto provide for fair large between trade enterprises for shared growth. are also We SMEs and reinforcing and ourinteraction with partner Win- companies the through line we are using hot the Department;win Growth and, Meeting with Partners’, ‘Outreach a talk with CJ O the and managementShopping in order to listen of to VOP (Voice making improvementPartner) and accordingly. SUPPORTING SYSTEM FOR PARTNERS helps partnersCJ O Shopping develop their competitiveness offeringby programs monthly to improve marketing on capabilities, qualityimprovement. operating and efficiency In particular, to promote sustainable growth by enhancing technological the level SME partners, of is CJ O Shopping field with on quality techniques control guidance providing experts at domestic international bases. In production and operationaddition, by an agreement with government-funded institutes, is research testing establishing CJ O Shopping and for inspection a system cost the of product to reduce partners. For difficulties, partners financial experiencing CJ O support is plans operating of financial Shopping range a wide fair the based “Win-win on the agreement, trading including payment is the also reducing and “Network Loan” and Fund” improving periodAdditionally, payment. of means the we and management partners’ the convenience increased have fund method payment to for the cash those that have by changing entered into fair the trading agreement with O Shopping. CJ TRADE RELATIONSHIP FAIR In selecting trading with partners them, CJ O Shopping and establishedhas signed internal standards systems and fairthe agreement trading transparent to fair ensure and operations in all departments. For promotional such events, it made we have TV broadcasting, mandatory through as to sign a preliminary agreement. revised In addition, the ‘TV Fair by the set Trade Contract’ out Home Standard Shopping Commission is to applied all stages of business. In particular, is operatingCJ O Shopping Unfair the Report Trade Center the At practices. and in ordertransactions unfair to prevent same time, external we are organizing internal education and programs effort in an to develop fair relationships. trade 2016 CJ CSV REPORT - 10 77 4.5 1.6 0.8 1.7 1.6 325 212 140 860 325 19.1 2016 2016 2016 1,114 1,114 1,439 - - 83 63 1.9 0.4 3.9 1.9 0.3 635 758 298 155 12.6 2015 2015 758 298 2015 (Unit: 1 billion KRW) (Unit: 1 billion KRW) (Unit: 1 billion KRW) 1,056 APPENDIX - - 39 58 6.4 0.2 0.1 0.1 5.5 1.9 0.4 283 140 62.9 2014 2014 576 283 859 2014 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 97 Olive Young STATUS SALES OF AND ALLOCATION CREATION OLIVE YOUNG ECONOMIC VALUE_ OF AND ALLOCATION CREATION IT BUSINESS ECONOMIC VALUE_ Channel Olive Young IT Business Sales Category Direct Creation of Economic Value Shareholders (Dividend) Employees Welfare) (Wage and and Executives Government (Tax) Creditors (Interest Expense) CommunityLocal (Donation) Partner Cost) Company (Purchasing Category Direct Creation of Economic Value Shareholders (Dividend) Employees Welfare) (Wage and and Executives Government (Tax) Creditors (Interest Expense) CommunityLocal (Donation) Partner Cost) Company (Purchasing REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ OliveNetworks' office _ Daytime building CJ BUSINESS OVERVIEW OLIVE YOUNG items, 15,000 trendy More than categorized into five product categories health, of beauty, personal healthy care, food miscellaneous stores. goods,and offered are Olive at Young strives differentiated to provide OliveYoung services for promotes a and customers’ experience shopping convenient that satisfytotal care business selecting by beauty products customers’ (Private PB developing by various and needs is also pioneering Olive healthy Young and products. Brand) lifestyles, beautiful culture and constantly shopping and points with customers contact the expanding by increasing of storesnumber in major locations. IT BUSINESS in 1995, CJ OliveNetworks’ IT foundation the Since Business realizing been has customer satisfaction value and culture- livingdevelopment providing and by successfully distribution, for as based IT services, manufacturing, such logistics media fields. Based and customer’s on trust support, maintaining a stable been we have growth and experiences and In addition,with accumulated trend. the competencies in established the service, system IT and IT Businessthe is technologies new leading for future the that comply with latest the of big IT trends data, IoT, cloud swiftly thus security, and computing,and source open OliveNetworks’ CJ market to the demands. IT responding a global as on by taking Business ICT company will advance promoting innovation. continuously challengesnew and www.cjolivenetworks.co.kr Digital 1 Smart No. Creator Value of clients’ industry Based understanding the on business, CJ OliveNetworks establishesand provides user-friendly systemsefficient and and competitive IT services trendy create that can and high-business performance efficiency. and Make IT Easy! Create customer satisfaction and IT services. convenient value with easy and IT BUSINESS VISION MISSION SLOGAN 96 The Playground of Trend Leading Shoppers Leading of Trend Playground The customers’Lead lifestyles generate and values with differentiated shopping new products. beauty health and with Olive Young All Live Young philosophy to sloganThe Olive reflects Young’s support lifestyles. peoples' rich healthy and OLIVE YOUNG VISION MISSION SLOGAN VISION & MISSION beautiful aims to lead a healthy lifestyleCJ OliveNetworks’ with and products. trendy Olive space Young a shopping by providing CJ OliveNetworks’ IT Business is committed to becoming “Digital the 1 Smart No. Creator” Value by exploring growth future establishment our core competencies operation planning, in the and systems.IT of enginestrends IT and new based on are We realizing customer value in various fields by developing smart IT technologies, of future IT services convergence the through such computing. cloud big IoT, as data and CJ OliveNetworks has applied an advanced, customer IT service experience-based advanced, CJ OliveNetworks to Olive an applied has Young, store. beauty CJ OliveNetworksa health and is customers’ leading lifestyles Korea’s IT- leading through based smart values creates distribution with differentiated shopping new service. Olive Young products maximizesand customer placed with a focus distribution satisfaction products services with and advanced IT Business Our promoting comprehensive ison customers’ providing convenience. health, and beauty to consulting, implementationIT services to from various IT planning ranging management according and growing into thus a reliablebusiness environments, customer partner and achieves that satisfaction and creates value new for customers. Unlisted company KRW 1,439 billion Lee (IT Business) Kyung-bae Min-ho Heo (Olive Young) 15, 1995 March Health Store, & Beauty IT system operation development and CJ Building, 12, (Olive Young) Seoul, Korea 2-gil,Sowol-ro Jung-gu, 82-1577-4887 Tel. (IT Business) 10 - 14th Floor, City Namsan OfficeTwin Building, 56, Seoul, Korea Dongja-dong, Yongsan-gu, 82-2-6252-0000 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Sales CEO Date of Establishment BusinessMain Info. Contact 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 99 FINANCIAL PERFORMANCE OliveNetworks CJ to grow reached has continues in sales,and sales totaling 1.439 trillion IT Business The of 2016. KRW as business items solutions new developing is on focusing and forgrowth future together withexpanding IT services and overseas we are achieving market. As for Olive Young, performanceeconomic H&B of a higher an level by achieving market development the share of 60.0%, through of products satisfying stores of opening consumer and continuous needs, reinforcement of service competitiveness. FOSTERING A WIN-WIN ECOSYSTEM CHAIN MANAGEMENT VALUE consists value chain of store development, Olive Young’s logistics, purchase, product customer operation and service. As of 2016, we work with a total aim of 446 partners and to improve our partners’ competitiveness in all stages of business by sharing our expertise competencies and developed over years. the CHANNELS FOR MARKETING EXPANDING PRODUCTS LOCAL signedMOU with Ministry the an OliveYoung of Trade, Energy to supportIndustry ‘global the marketing and of of daily premium supplies and branding local products’ Korean officially 2016, Olive cosmetic In May Young and products. Regional System the of Innovation brand a ‘REAL’, launched (RIS). We also installed Companion inzones Happy 16 stores from five SMEs. regionalat the 49 products centers to launch strives efforts,By such market to to the contribute Olive Young long-term development and expansion products. of local SUPPORTING SHARED GROWTH WITH PARTNERS For win-win management, IT Business the hosted regular meetingswith specialized partners for better communication. We also opportunities provide for employees of partner companies to participate training with in CJ technical OliveNetworks’ employees. Furthermore, provide we ‘early before as payment support, such financial practical national holidays’, ‘exemption insurance from guaranty policy for for incentives specialized ‘yearend partners’ and subcontractors’. REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Awarded by Awarded Ministry ICT of Science, Planning Future and Korea International Cooperation Agency (KOICA) Korea Consumer Appraisal (KCA) Korea Information Service Technology Industry Association Ministry of Gender FamilyEquality and CSV MANAGEMENT CSV Green Data Center Green Certification th Award in technology the solution Award Top category ‘Korea Big 3rd at the Data Award’ ‘Global sharing category’, Korea CSR Film Festival 2016 health 1 in store the No. / beauty category Koreaat ‘the Consumer Satisfaction 2016’ Evaluation Award 5 The Selected ‘Family-friendly as Certified Company 2016’ MAIN AWARDS RECEIVED IN 2016 RECEIVED MAIN AWARDS CJ Date June November December December December REINFORCING PRODUCT AND SERVICE COMPETITIVENESS ENHANCING SAFETY AND QUALITY CONTROL In order customers to provide reliable with safe products, and quality safety by not controls and product the Olive Young our self- also complyingonly applying withbut legal standards, In particular, partnersdeveloped standards. manufacturing undergo services to Olive and Young products supplying and strict safety verifications In 2016, the for their products. for 93.9 % of account which of 31 private brands, products partner 33 the companies, were verified their of compliance internal company’s the standards with and legal the standards health safety evaluations. through Quality and control was as also with such legal implemented standards, in accordance informationthe requirements for type of main labeling each service. result a As efforts, the of and product there was no violation safety in 2016. inspections product in the REINFORCING BRAND AND SERVICE MANAGEMENT services so and improving focuses on brand the Olive Young toas make sure that consumers high-quality enjoy products by reinforcing manages brand the services. Oliveand Young category products imports,beauty with exclusive product collaboration and (PB) expansion product privatebrand stores of number the well as increasing by in as launches, major locations. We also implement logistics management by operating dual logistics centers in both metropolitan and also carries professional the regional out Olive areas. Young service store. monitoringtraining and at each Project ’ Happy Companion Happy CSV PERFORMANCE ‘ Since 2016, CJ OliveNetworks’ Olive Young has been been has OliveNetworks’ CJ 2016, Since Olive Young discovering prominent health and startups manufacturing supporting them in local areas and (H&B) products beauty shared growth with CJ Group’s the distribution channels, 49 launched 2016, we discovered In project. five SMEs and from three nine products We also launched local products. startups supporting by discovering startups and that had operatingbeen for less three years. With than ‘Happy the to will only not contribute Companion’ Olive project, Young improving self-sustaining also the to power but of SMEs, economy. the activating Pot, a Startup Support PlatformHub OliveNetwork’sCJ Business IT online an opened community for supporting startups, with a goalto reduce create a people unemploymentthe and rate for young healthy people startup wish who to ecosystem. All young start their startup- obtain businesses share ideas, own can related information basic support ‘Hub receive through and BusinessIT The Pot’, is also performing various activities to commercialize holding as excellent business such ideas, various promoting themes partnershipcontests under and with startups. the with Projects Joint SMEs Business IT The is performing various activities a to build cooperative system with SMEs with a goal to realize the discover We IT’. value growth ‘shared of through excellent IT solutions developed by SMEs in Korea, the by holding IT Solution Examination Committee a regular on basis and IT Businesspromoting the joint projects with SMEs. As such, activities to cooperative reinforce expanding is continuously relationships with SMEs. Software Creativity Camp IT BusinessThe is program operating educational on an software targeting coding children from low-income families part as itsof activitiesCSR leveragethat its features an as IT service provider. Started in 2015, this program been has collaboration through expanded with local continuously communities. camp the 2016, In was times nine held with approximately education. the received 200 children, who 98 Happy Companions Zone Happy CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE (Olive Young) of CJ OliveNetworks strivesOlive Young to become a lovedcompany by customers society by creating a and culture. orderIn to realize healthshopping beauty & core the CSV management, ‘Shared growth the value of Olive Young’s will for care underprivileged’, take the the and Olive Young prominentlead in providing to sales local SMEs with access participating in various and volunteering activities.channels (IT Business) managementBased Group’s CJ the philosophy, on IT the Businessimplements OliveNetworksCJ of continuously win- win initiatives sharing activities that leverage and our features IT service IT Business The an company. as will establish CSV core the based value on of “win-win CSV practices, IT partnership” for by creating startup a space ecosystem resolvingactivation, unemploymentthe issue for young improving cooperationpeople and with SMEs. STRATEGY CSV IMPLEMENTATION CJ OliveNetworks aims a society to where build everyone can co-existence, culture and joy of education, the experience investment fulfill activities, our business and through which environmental reinforce objectivesboth social and and business competitiveness CJ addition, In run. long in the businessesOliveNetworks to create is value new expanding business division. core the based competencies on of each 2016 CJ CSV REPORT 6 2 3 0 99 39 17 43 8.7 157 267 822 908 128 89.9 96.0 99.8 98.7 2016 2016 115.4 2,320 1,628 7 1 0 0 92 23 16 65 26 8.4 136 435 130 490 346 97.3 42.7 99.4 96.7 2015 2015 133.0 1,277 0 0 6 1 7 94 15 48 54 23 5.6 967 107 181 141 100 492 76.5 72.9 41.9 99.8 2014 2014 2016 20,831 263,802 2,549,431 % % % Unit Unit Case Hour Hour Hour Hour Person Person Person Person Person Person Person Person Person 2015 19,752 MillionKRW MillionKRW 233,551 APPENDIX 10,000 KRW 10,000 KRW 2,257,630 2014 17,596 163,379 Male Female Male Female Male Female Male Female 1,564,397 Unit kWh mWh 1,000 KRW CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 101 KEY PERFORMANCES ON CSR_ IT BUSINESS ENERGY CONTROL STATUS OF CONTROL STATUS ENERGY CENTER CJ GROUP’S DATA KEY PERFORMANCES ON CSR_ OLIVE YOUNG RESPONSE TO CLIMATE CHANGE CLIMATE RESPONSE TO For saving energy, IT Business the carries energy out facilitymanagement by each CJ OliveNetworks in the CJ OliveNetworks IDC Plant. Songdo headquarters and highestmaintains the ingreen the efficiency data center, in response to national the policy for climate The change. energy saving goals are set for cooling energy in data the power in communal spaces. lighting standby center and and operating the annual costs an reduced we addition, In through raise in energy efficiency. Category per hour employeeTraining per hours education employeeEthics per expenditure Training employee of employeesNo. completed who sexual on education harassment prevention Completion rate of integrity education of employeesNo. took who leave parental Donation employeesNew Personal information leakage Category Cooling Energy Saving Electric Charge Saving Electric Power Use Category per hour employeeTraining per hours education employeeEthics per expenditure Training employee of employeesNo. completed who sexual on education harassment prevention Completion rate of integrity education of employeesNo. took who leave parental Donation employeesNew REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ EMPLOYEES’ PARTICIPATION IN PARTICIPATION EMPLOYEES’ ACTIVITIES VOLUNTEER Employees’ volunteer group, OLIVE’ ‘SHARE WITH in May voluntary service group founded OliveAs the Young’s 2016, ‘Share with Olive’ regularly performs activities monthly employees’through voluntary participation. We participated in volunteer services for children from women low- and socially neglected groups at social welfare and income facilities Haeorumville Namsanwon, Holt including and Children’s Services. set have All out employees of Olive Young a goal to perform voluntary services a year. at least once Box CampaignPink sanitary 200,000 provides for pads girlsOlive Young living in DIY fabric difficult well as handmade as conditions bags. by employees eco partner The pads companies and women’s are joining sanitary inmanufacturing the products voluntary employees, efforts more adding of Olive Young’s values campaign. the on Beautiful Moms’ Day ‘Beautiful Moms’ is a program Day’ aimed at improving the self-esteem will the for and child caring of single parents various birthdaythrough support parties. activities including sponsors ‘Beautiful the Moms’ programOlive Day’ Young organized by Holt our employee Children’s Services, and volunteergroup with‘Share Olive’ is participating in the program. ActivitiesVoluntary IT Company an as employeesThe IT Business of the participate in talent software on education provide for todonation develop and children in childcare centers, well as cultural as experience voluntary servicessupport environment and to the clean of childcare schools centers for North refugees. and Korean We also perform charity activities a regular on basis targeting the socially neglected. HEALTHY CORPORATE CULTURE CORPORATE HEALTHY ON ANTI-DISCRIMINATION EDUCATION AND HUMAN RIGHTS of employees number The 1,001 in IT Business the reached 27% are female.(As of 2016), of which IT Business The strives discrimination-freeto build corporate and working conditions prohibits discriminationculture and in recruitment the training per hours employee been Annual process. have training over last the years,three continuously and increased for employeesvarious ison topics a yearly conducted on basis sexual to harassment prevent in workplace. the FAIR TRADE RELATIONSHIP FAIR importance the Recognizing of partners, IT Business the is creating win-wincooperation outcomes by promoting fair opportunities equal We ensure transactions. transparent and to partners, fair carry all operations out and in a transparent thus principles, and and by followingmanner standards the a cooperativebuild relationship trust. mutual based on In BusinessIT addition,the is advancement promotingpurchase system policy improvement, and continuous through and employees’ fairmindset enhancing about regularlyby trading Olive programs educational subcontracting. on providing is also striving law infringements to prevent Young by organizing related programs educational with a goal to build fair relationships trading with partners. In 2016, we provided in Large Fair Franchises Act on the Transactions on education Retail Businessesand targeting MDs for times three on and an also conducted for Olive twice. contract Young MD annual internalemployeesof inspection to voluntarily comply with fairthe regulations. trading-related laws and SATISFACTION CUSTOMER IMPROVING customer satisfaction a biannual Business IT The conducts survey with ten corporate clients, 19 categories on including quality, utilization support for convenience, operators. and aimWe to improve customer IT the satisfaction enhancing by to suggestions claimsservice by made quality and according clients in survey. the 100 Type of Participation and Frequency of Participation and Type Communication via Online channels General Meetings of Shareholders a year) (once Support forEducation Employees of Partners, for a year) Partners Incentives Pay (once Labor - management committee (quarterly), / Broadcasting In-house CEO’s Periodic Letter / Vision Meeting Work (togetherVolunteer with welfare local through as centers) Donation, such Talent Softwarethe Creativity Camp IT Service relevant AssociationJoining and Participation Consultation within Council, Regionalrelevant Institutes Areas of InterestAreas Service Quality Customer Satisfaction Stable Profit Creation ImprovementCompany Value Regulatory & Competitive Environment Shared Growth Fair Trade Quality of Life & Welfare Competency Development / Career Management Regional Economic Vitalization Responsibility Social Activities Compliance of Law Policy Establishment / Improvement Cooperation STAKEHOLDER PARTICIPATION STAKEHOLDER PRACTICING ETHICAL MANAGEMENT PRACTICING OF REINFORCING IMPLEMENTATION ETHICAL MANAGEMENT promoted a establish culture, To Olive ethical Young an management of ethical number activities in 2016. Each ‘Integrity we sent an month, Letter’ Practice to employees emphasize importanceso the to as continuously of ethical management. In 2016, 1,770 employees (70.5% of all employees) violations prevent anti-corruptionreceived To education. Improper enforced Solicitation recently of the Graft and operated ‘Holiday the Gift OliveAct, Young Return Center’ during holiday the periods. compliance autonomous In the program, IT Business the guidelines provides to the equivalent business policies in and of conduct code ethical company’s order to promote fair managementcompliance trading, and consumer same protection. At the time, we remindemployees importanceof the management of compliance by using internal programs. educational and communication channels Category Customers Shareholders Partners Executives and Employees Local communities Government SHARED GROWTH THROUGH WITH STAKEHOLDERS COMMUNICATION can IT BusinessThe groups who defines and “individuals affectedbe affect by or business” stakeholders as can and operates to communicate with them. various Such channels customer satisfaction include communicationchannels surveys, stakeholders which can through conferences website, and SNS freely express their IT Business The seeks opinions. constantly shared growth with stakeholders.for to achieve ways new 2016 CJ CSV REPORT 1% 74% 1,538 Others Media (Unit: 1 billion KRW) APPENDIX 1,233 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 103 1,347 13% 12% 2014 2015 2016 SALES RATIO BY DIVISION IN 2016 RATIO SALES Music Film STATUS SALES LIVE ENTERTAINMENT Live EntertainmentOur Division is into divided two business promotes which production unit, self-production the units, marketing which global the unit, of theatricaland works, and investment in major and carries overseas production out Starting Japan. and U.S., U.K., China the as markets, such with ‘Cats’ in Live E&M’s CJ 2003, Entertainment Division cornerstone laidthe has of Korea’s musical industry through 300 theatrical of more than production licensingthe and our positionworks. alsoWe have expanded mainstream inthe musical market Anglo-American at the region, with the premiereBroadway of ‘Kinky Boots’ in 2013. ANIMATION Established in 2015, our Animation Division been has of ‘Papa production and animation planning expanding first the since House’ Haunted ‘The animationdog’ and We are also ‘Robot Train’. promoting forproduction, plans a licensingcharacter business. In addition, CJ E&M’s Animation Divisionis global the animation accelerating business by entering America markets South U.S., in the China, and Europe, with animation the of ‘Super Wings’, production developed for global the market. REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ BUSINESS OVERVIEW MEDIA diversificationIn response to viewers’ and needs changing of medianew platforms, CJ E&M operates multiple television XTM, OCN, CGV, Channel Mnet, tvN, including channels DIA O’live, , OGN, REAL CHINA Chinese TV and original w eprovide via diversifiedTV; and, contents media digital. platforms,cable, as and IPTV Aspiringsuch to become Asia’screation 1 contents No. marketing& CJ company, E&M’s Media Division will lead television digital and trends distributing and producing global the culture actively by and Hallyu contents. FILM film of the first the Since business in CJ 1995, launching E&M’s Film Division box offices leading been has through distribution investment filmsKorean of incontinuous and and securing overseasby actively copyrights. Film As of 2016, the Division is with trends leading diverse subject materials, as ‘Operation Chromite’‘Master’. seenHandmaiden,’, in ‘The and We are also world’s of the growing film intoa hub industry of expansion and Vietnam localization through in and China Film The Indonesia. Division and joint projects in Thailand will make steady growth content-planning by reinforcing securing variouscapability channels. and MUSIC CJ E&M’s Music Division is with developing production, licensingdistribution of existing and and music contents of various expansion businessesthe relevant within the domestic as overseasmusic market, concerts, such and entertainment video publications. management Mnet, in and particular, is strengthening our growth engine by promoting digitalthe business, which music-based convergence combines diverse the types Through of cultural contents. our Music Division business execution, active will take a leap becoming towards Korea’s largest comprehensive music a leaderstation of K-Pop Hallyu. and www.cjenm.com . We also played ’ Produce 101 Produce ‘ ‘Goblin’ and ‘Goblin’ and ’ Enhance public brand recognition and recognition and brand public Enhance competitiveness integrated an through brand business opportunities through Expand multi-useone-source contents Accelerate globalization utilization the through of CJ E&M’s integrated synergy Signal, ‘ Create Era a New of Global Pop Culture 102 VISION & MISSION VISION MISSION a major role in domestic overseas box-offices, and demonstrated as and films by the Handmaiden’ ‘The ‘Operation Chromite’. In addition, CJ E&M solidified our position a leader as of global pop culture by live entertainment. in music and capacity CJ E&M will production the grow to the be enhancing general 1 No. provider in content Asia by fortifying business areas. across capacities our content VISION & MISSION vision, the CJ E&M aspires “Create to business achieve opportunities era a new of global through culture,” pop by expanding global by accelerating market investmentcontent entry and CJ E&M will with contents. Wave, Hallyu, Korean the provide differentiatedvalue to customers consolidatingby spirit clear,a vision, company-wide ONLYONE the based on to become the First, Only. the Best the and As Korea’s largest entertainment media CJ E&M entertains company, customers and both home and platform various and services contents providing in media, and by developing film,abroad music, live entertainmentanimation that cater and to their diverse In 2016, CJ E&M strengthened the needs. drama seen as in dramas contents and variety show 38,732,089 shares CJ Corporation 39.36% KRW 1538.4 billion Kim Sung-su September 2, 2010 Media, Film, Music, Live Entertainment (HQ) CJ E&M Center, 66, Seoul, Korea Mapo-gu, Sangamsan-ro, 82-2-371-5501 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Shareholders Sales CEO Date of Establishment BusinessMain Info. Contact 2016 CJ CSV REPORT Business Details Film Film, KCON Broadcasting, Broadcasting KCON OTT, Broadcasting, , Additional Copyright / ManagementMusic / Production Concert CJ Entertainment America CJ E&M America ImaginAsian Entertainment AMERICA APPENDIX Branch Inc. CJ E&M Japan CJ Entertainment Inc. Japan CJ Victor Entertainment Inc. CJ Entertainment America, LLC CJ E&M America, Inc. ImaginAsian Entertainment, Inc. Region Japan U.S. CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 105 CJ E&M Japan CJ Entertainment Japan CJ Victor Entertainment CJ E&M Hongkong REG GLOBAL MARKET ENTRY MARKET GLOBAL overseas successful ensure marketTo entry, CJ E&M is project office one in the operating and ten overseas branches Asia. Southeast opened we 2016, In and China Japan, U.S., in order to Thailand commence in Vietnam and branches full-scale media local Asia. business in Southeast CJ E&M is diversifyingglobal cooperationbusiness through with local broadcasting companies and production as partners, such stations.hostingBy global festivals, CJ KCON, and MAMA status the Hallyu of spreading by isE&M further enhancing also the Asia, only culture in not but toKorean K-culture fans Middle the East. and U.S., France HONG KONG CHINA REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CJ Blue VIETNAM Business Details / Film / Drama Production Show Variety / Distribution, Copyright Consulting Ip 360° ManagementBoys24 And Commercialization Broadcasting Concert Promoter / Agency Film Consulting Production AdvertisingBroadcasting, Film / Distribution Production AdvertisingBroadcasting, Limited CJ E&M Vietnam Shanghai Cultural Shanghai THAILAND Content Distribution Shanghai Yiheya Media Yiheya Shanghai True CJ Creations CSV MANAGEMENT CSV CJ Major Entertainment Branch Media Co.,Ltd. Yiheya Shanghai Cultural Content DistributionShanghai Limited Co.,Ltd. CJ E&M Hongkong Rolemodel Entertainment Limited Group Co.,CJ E&M Vietnam Ltd. CJ Blue Co., Ltd. CJ Major Entertainment Co., Ltd. True CJ Creations Co., Ltd. Overseas Branches (14) Overseas Branches Region China Hong Kong Vietnam Thailand CJ CULTURE SPREADING HALLYU REINFORCEMENT OF THROUGH THE BUSINESS GLOBAL PERFORMANCE BUSINESS GLOBAL also in Korea, only but not are recognized CJ E&M’s contents globalin the market. Starting with TV format the export of over Flowers’ ‘Grandpas been U.S. in to 2014, CJ E&M has the drama export contents, the accelerating and of variety shows export as Genius’ of ‘The formatsuch export to U.K., the of creation ‘Let formatIn’ Me the rebooteda of and to Thailand format Voice’ export See Your ‘I Can version toChina, and in remake the Vietnam. We also succeeded and Thailand the proved thus and Vietnam in and China ‘Missof Granny’ CJ global company’s film competencies. As such, production around contents of Korean E&M is excellence the publicizing worldthe value of cultural by creating sustainable added contents. MARKET ENTRY GLOBAL CSV PERFORMANCE DIA TV CJ E&M initiated first the Networks) MCN (Multi-Channel supporting been since has content business in and 2013 creators games, in various fields and music, beauty including ‘DIA TV launched We took stepkids’ contents. another and (DigitalArtist & Influencer 2015. DIA TV was TV)’ in May with missiona founded to develop ‘creators’talented the into actively E&M CJ video producers ‘influencers’. individual supports one-person on creators focus so can that they that their lead to quality talents can and production content jobs. In addition, to high-quality help creators produce enter global the market cooperation, and through contents CJ supportsE&M themwith advertising development, product participation distributioncontent in and various and events, their contributes to profits. increasing thus KCON CJ E&M’s KCON is a platform optimized for of spreading the global of prominent expansion SMEs and culture and Korean for K-Concert, Contents their acronym KCON is contents. an a foothold we provide for which Convention, through and overseas entry of domestic SMEs in culture industries, such food. ‘KCON held E&M CJ 2016, In and fashion, beauty as targeting Dhabi’ 2016 Abu Middle the Eastern market in the United U.S. (LA, Arab Emirates, the and in addition to Japan same At the York). New time, we strove to publicize Korean by hosting contents KCON France’ ‘2016 the culture and to celebrate anniversary 130th the establishment of the of Together diplomatic France. relations Korea between and with Small Medium the Business Administration and (SMBA) Small, the Large Business Mediumand and Cooperation the E&M invitedCJ SMEs to 175 and KCON, Foundation, participating companies were withsubstantial provided consultation as meetingssupport, such with overseas buyers, mentoring sessions sales with local businesses promotion and comprehensive providing By K-lifestyle events. experiences products, food and contents with fashion and K-pop, beauty, established been KCON has a Hallyu as platform to lead the value . K (Korea) the brand increase of Hallyuspread and 104 entry by SMEs KCON / MAMA Shared Growth Support overseas market Core Values Barrier Free / Share culture Cinema You To Strategic Direction Reduce cultural divide Reduce DIA TV on the core competencies and expertise core the competencieson and company a contents as cultural ecosystem Foster creators new Create social / business values with differentiated CSV business model based Develop creator-oriented CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE 1 comprehensive No. that createsAs the company contents dedicating continuously been CJ E&M has trends, culture and effortsinvesting for in media, and live film, musicand entertainment industry for last the 20 years. We will foster a healthyecosystem oriented creators content towards within lead Hallyu 3.0 with culture the industry self-produced and a strong global network. Moreover, and contents a cultural as with company a managementcontents philosophy geared sharing,towards we will dreams with work to share joy and underprivileged neighbors culture. through STRATEGY CSV IMPLEMENTATION volunteerCJ E&M strives work charity and to step beyond value cultureof the share with society. ultimatelyWe and aim for cultural the gap sustainable growth shared by reducing fosteringwithin our society and a healthy cultural ecosystem. 2016 CJ CSV REPORT 0 0 0 80 99 98 19 135 2016 8,700 4,206.18 1 0 0 68 97 95 98 32 2015 5,700 4,156.69 1 0 0 57 99 96 23 142 2014 3,500 3,858.65 % % Unit TOE Case Hour Person Person Person Million KRW APPENDIX 10,000 KRW Male Female CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 107 GIVE Market Visit to elderly the living alone KEY PERFORMANCES ON CSR Category per hour employeeTraining per expenditure Training employee of employeesNo. completed who sexual on education harassment prevention Completion rate of integrity education of employeesNo. took who leave parental Donation of energy use Amount rate Accident Personal information leakage REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ COMMUNITIES EFFORTS FOR LOCAL FOR ACTIVITIES VOLUNTARY COMMUNITIES LOCAL neighbors needy help out in local communities,To CJ E&M designatedhas as month every third of each Wednesday performed of Sharing’ and ‘Day the voluntary services and charityactivities a regular on basis. efforts CJ E&M’s for a cultural support ‘Donghaeng’, local communities include program socially the neglected; for low-income group the and ‘Saessak Nadeuri’ to help children from welfare facilities e-book Books’, ‘Audio an outdoor experiences;enjoy and for activity visually the production impaired. In addition, CJ E&M is striving to make to communities local contributions by organizing ‘Healing the Concert’ for children suffering from diseases at children’s hospitals; a program ‘Turtle Marathon’, to walk with disabled'; ‘GIVE Market’, E&M the the and Charity participated Bazaar allby employees.will CJ E&M philosophy the sharing of to management practice continue culture, activities through the that share hope expand and with neighbors in difficult situations. DIA TV CREATING A HEALTHY ECOSYSTEM A HEALTHY CREATING INDUSTRY FOR CULTURAL ECOSYSTEM CULTURAL DEVELOPING FOR CREATORS CJ E&M is a cultural developing industry ecosystem by operatingtalentof number a fostering ‘DIA as programs, such TV’ to discover talented one-person support creators and commercialization; and them production in content ‘Music foster Lab’ to discoverResearch and creators new through cooperation;industry-academy ‘ButterflyProject’ to support competentCreator‘CJ directors; and new to Lab’ and large-scale produce creative musicals for global the market with talented creators. CJ company, As a cultural contents create value the of culture with to continuously E&M plans people from all walks of life. DIVIDE THROUGH REDUCING CULTURAL SHARE VALUE CULTURAL CJ E&M is performing various cultural sharing activities to resolve barrier-free cultural in the divide society. We produce films a descriptive with subtitles Korean video service and for visuallythe impaired difficulty experience who in watching movies. As for culturally the live neglected who in areas movie theaters,without we also carry ‘Cinema the You’ out To latestproject to the play movies for free by visiting areas. the cultural experience everyone to that addition, In can ensure enjoyment, CJ E&M offers benefit to low- a discount the provides and Card’ ‘Munhwanuri the groupincome through free seatsfor children fromseniors low- liveand who alone familiesincome burden. economic to movies enjoy without 60 25 2016 58 106 24.9 2015 51 22 2014 % Unit Person Barrier Free DIVERSITY INDEX Category of FemalesNo. above Manager Team Female Ratio above Manager Team FOSTERING A HEALTHY CORPORATE CORPORATE FOSTERING A HEALTHY CULTURE SPREADING ANTI-CORRUPTION CULTURE corporatetransparent For fair management, and all employeesand striveCJ E&M at executives to implement anti-corruption establish policiesand culture. E&M CJ ethical operated Whistle’, ‘CJ and ethics of code the sethas out reporting a cyber team system, audit anonymous and an reports to confidentially unfair business on made handle employee corruption. and demands In wrongful practices, addition,CJ E&M posted ‘BuildingHealthy E&M’, introducing attitudes CJ People, of honesty on and of conduct code the bulletin company’s the board. SECURING HUMAN RIGHTS AND DIVERSITY employees and are totala 2016, of As 1,726 executives of working Female E&M. CJ at employees take the of 50% up female the of 25% total, employeesand in are positions of team managers or higher.prohibitsE&M CJ discrimination non-regular employees. regularbetween and In addition, to provide we ethics, awareness rights the human of and enhance training sexual compliance on harassment prevention and information fair on education trade and protection. 2016 CJ CSV REPORT 3 30 84 11 36 636 773 247 185 915 227 139 115 2016 1,432 8.1% 63.9% No. of Screens No. No. of Screens No. 28 Others 760 175 109 122 Ticket 2015 (Unit: 1 billion KRW) 1,194 APPENDIX 5 1 81 88 38 27 (As of December 31, 2016) No. of TheatersNo. 93 / 719 of TheatersNo. 40 / 277 92 24 75 684 164 2014 1,039 No. of TheatersNo. Year of EntryYear 2006 2016 2011 2014 2014 2010 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 15.8% 9.7% 2.5% 109 GLOBAL THEATER AND THEATER GLOBAL SCREEN STATUS STATUS SALES AND SCREEN STATUS DOMESTIC THEATER SALES RATIO BY DIVISION IN 2016 BY DIVISION RATIO SALES Equipment Advertising Concession Country China Turkey Vietnam Indonesia Myanmar U.S. Category Ticket Sales Sales Concession Advertising Sales Equipment Sales Others Total Category Direct Management Consigned Management 4DX ScreenX REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV ‘4DX’ is format a specialty screening that engages all five senses. It delivers a fully immersive cinematic motion seats with experience ‘4DX’effects including lighting, withthat move scenes, wind, fog, and scent vibration. is‘ScreenX’ world’s the first multi-projection theater. This specialized theater future-oriented and imageincorporates a three-sided surrounding to immersive an provide experience. ‘IMAX’ is format a specialty screening with crystal clear image, maximized powerful and sound. screen ‘SPHERE X’ is a specialty theater with a curved immersive an that provides screen movie-watching experience. CHEF’ is‘CINE de a premium theater that combines with along movie-watching, fine served dining by chefs. decent ‘GOLD CLASS’ ispremium a theater that offers the custom- best environment movie-watching and tailored service. Private‘The Cinema’offers optimized an sound a private movie-watching It turns system lounge. and into experience. a special CJ BUSINESS OVERVIEW transformed CJ CGV has into a ‘Cultureplex’, advanced an multi-purpose and entertainment platform, combining by various with culturalcontents pleasant a theater experience. isCGV CJ making efforts ‘evolved experience an to provide originalthat exceeds the paradigm film of The watching’, creation the efforts include technological on advancement of ‘4DX’, a revolutionary that stimulates all five a multi-projection ‘ScreenX’, senses, theater. and We also Private ‘The ‘GOLD provide Cinema’, CHEF’ and ‘CINE de premium new are the CLASS’, all of which ‘Cultureplex’ customizedspaces to our customers’ lifestyle. In addition specialty the including of screens number the to increasing to satisfyscreens diverse the of customers needs in Korea, CJ isCGV performing globala platform as content opening by over 100 theaters globally with our differentiated services technologies. and The Only The www.cgv.co.kr The BestThe Diverse experiences enjoyments & Unique The FirstThe Evolving Beyond Movies, Global Cultureplex No.1 Evolving Beyond a mere environment movie-watching that is beyond Deliver ambiance services and become a comprehensive living and culture space advancement continuous through Lifestyle’. ‘Total that leads the memorable create a lastingTo and First, at the experience space Only the Bestthe and 108 VISION & MISSION VISION MISSION VISION & MISSION strives vision Movies, the to grow Global 1 Cultureplex’ our No. theatersCJ CGV constantly of ‘Evolving to and Beyond achieve into a total lifestyle customers that provides space with differentiated a mere movie watching experiences beyond services and we globe and the by 2020’, CJ CGV is committed this end, environment. To around a goal of ‘securing 10,000 screens to reaching work diverse to provide entertainment exceptional experiences in First, the space. Only the and Best the and As the No. 1 brand in Korea’s multiplex film of the 1 brand No. theater industry,As the concept the as CJ CGV introduced film development innovative by acquiring screening achieving firstthe continuously been has in Korea and technologies. sales recorded Having of KRW 1 trillion forward with a in 2014, CJ CGV is advancing progressive business to the overseas mindset markets by expanding in China, Vietnam, etc. In 2016, MARS Entertainmentwe acquired largest the Group, entertainment solidifying group in Turkey, our position in global the film market. With a goal to become world’s the 1 ‘Cultureplex’, No. world the by 2020. CJ CGV will around with reborn be 10,000 screens a ‘Hallyu as Content Hub’ Floor, I’PARK MALL, 55, th 21,161,313 shares CJ Corporation 39.02%, InvestmentSchroder Management Limited 6.29%, National Pension Service 6.23%, other shareholders 48.46% KRW 1,432 billion Seo Jung 30, 1999 March Cinema (HQ) 6 Hangang-daero 23-gil, Hangang-daero Yongsan-gu, KoreaSeoul, 82-1544-1122 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Shareholders Sales CEO Date of Establishment BusinessMain Info. Contact

2016 CJ CSV REPORT Screening Video / DVD / IPTV CATV TV Ground-Wave nd - - - VOD - 2 Screening screening, through media channels media through channels screening, 44 81 38 screening generally screening at takes place 350 636 247 st nd CGV 2016 2016 movie theaters such as CATV / IPTV and VOD, / IPTV and CATV as such is released faster increasingly Screening st - 2 - 1

1 (Unit: Screens) 34 63 30 223 503 196 2015 2015 APPENDIX (Unit: Screens) Theaters and Direct distributors Distribution - Distributors - Distributors 29 38 21 films to consumers rights of completed films offeringand release prints for sale or loan 140 300 134 2014 2014 - Distributing completed Purchasing - Purchasing publication Scenario writer - - Director - Producer - Actor - Staff Production Production Companies CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV No. of TheatersNo. of Screens No. of TheatersNo. of Screens No. 111 Investment / Production were approximately released in 510 of them Korea and * Investors Securing investmentSecuring acquiring sources, scenarios, recruiting staff, directors and casting actors and Film investors / investorsVenture Investment association specializing in visual works investorsIndividual Overseas investors Released data are based Film on from contents Korean the Council other contents. screened for contents IPTV and include and CURRENT STATUS OF ‘4DX’INSTALLED OF ‘4DX’INSTALLED CURRENT STATUS COUNTRIES AND SCREENS AND SCREENS IN THEATERS CHINA / VIETNAM REINFORCING PARTNERS’ COMPETENCY REINFORCING PARTNERS’ year. In 2016, a total of 3,929 Film each are increasing contents films * CJ CGV’S VALUE CHAIN VALUE CJ CGV’S - Distributors - - - - - Category of Screens No. Country Category China Vietnam were screened at CGV. As a mediator connecting customersweremediator at CGV. As a screened connecting 100 films movies, about CJ CGV receives from distributorsand maintains cooperationand with approximately 10,000 companies investment, in content marketing, production, In addition, CJ CGV is screening. strengthening the PR and competencies of our partners Korea the Film by holding CGV Partners’ event. Day Marketing and Conference 497 118 No. of Works No. 77 19 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Count CSV MANAGEMENT CSV TOTO’S FILM MAKING CLASSES AND WORKS CLASSES AND WORKS FILM MAKING TOTO’S PRODUCED IN 2011 - 2016 REINFORCING BUSINESS COMPETITIVENESS MARKET EXPANSION GLOBAL CJ CGV started globally with entry the to expand to China in operatewe 2016, of As 2006. in six screens 1,855 countries the and Myanmar Indonesia, Vietnam, China, Turkey, including U.S. With acquisition the entertainment a Turkish of MARS, groupin early climbedCGV CJ 2016, fifth ranked to be as a global multiplex, up five positions lastfrom tenth the rank installation additional enabled year.Globalhas expansion of ‘4DX’ screens, developed special CJ CGV’s independently installed are ‘4DX’screens 350 2016, of As “ScreenX.” in and installedare ‘ScreenX’screens 107 in four countries,44 and countries. Based our expertise on core competencies for and differentiated services built in Korea, CJ CGV will grow the as becoming world’s the Cultureplex1 No. “Hallyuhub” content world the by 2020. around with 10,000 screens CJ Category Film ClassToto’s Making in Korea Film ClassToto’s Making abroad CGV Harmony Fund with manages Harmony Fund’ ‘CGV the raisesCGV CJ and & Development for Peace Foundation China Friendship the to support arts for the education children of migrant laborer families CJ CGV supported the in China. Using fund, the improvement art facilities. education repair and of cultural and With CJ E&M, we also various cultural provided experience Movie ‘Happy Dream ‘CJ Art as programs, Class’ and such Class’ withChildren’s China the well as Society Movie as classa etiquette with on musicstarsK-pop education and in movie theaters. programs The continuously been have held 12 schools at for children of migrant laborer families in a total China over students of 8,920 last the 5 years, and participated in programs. the With our efforts for continuous regular citationactivitiesa received CGV CJ recognized, and for excellent volunteer program from Chinese the government in 2016. Toto’s Film ClassToto’s Making in 2016 China, CSV PERFORMANCE CGV ARTHOUSE film theater independent ‘CGV ARTHOUSE’, an Through in is CGV CJ 2004, opened performing various activities to film market. Korea’s In 2016, CJ CGV independent expand started of Fame’ ‘CGV ARTHOUSE Screen the to cast light held Korea’s film on leading concurrently makers and raised were a sponsoring to donated campaign. funds The filmssupportin Korea. high-quality produced independent Sponsoring works the movie directors, of medium-standing also those of and ‘4th Place’ and Lady’ Bacchus ‘The as such ‘Queen Cried Who Boys ‘The Wolf’ as directors, and new such efforts the the dedicated CJ CGV of Walking’, to expanding art film vitalizing market. independent the base and Film ClassToto’s Making Started in 2008 to resolve cultural the gap, CJ CGV’s Film representative project, ‘Toto’s donation educational film on Class’,Making education aims at providing creation to children from culturally neglected areas, low-income families multicultural families.and increasing been CJ CGV has peopleopportunities to nurture their for dreams to young become film makers programs global education by providing 2011 since filmon Indonesia creation in and China Vietnam, by promoting ‘Career the at Movie Theater’ Experience and Toto’s 2014. From 2014 to Indonesian since 2016, the Flim Class cooperated Making has with (Korea KOICA International Cooperation While program Agency). the was 307 held eight Yogyakarta, times and in Jakarta, Bandung 75 professional people instructors and created 39 films.young their films knowledge participants about The broadened by parttaking in various movie festivals seminars. and 110 practices include include practices Awarded by Awarded Korea Exchange Stock Korea Productivity Center Korea IR Award place at NBCI place st Award Excellent Company for Securities Market Posting in 2015 1 (National Brand Competitiveness(National Brand Index) Excellent Company for IR in 2016 MAIN AWARDS RECEIVED IN 2016 MAIN AWARDS Date March August October providing cultural opportunitiesproviding for underprivileged the and art films.supporting CJ CGV promotes independent favorable communication with communities local within our business territory by implementing several volunteer activities. STRATEGY CSV IMPLEMENTATION CJ CGV is promoting systematic projects CSV with a goal film achieve market Korea’s and independent to expand growthshared with communities. local With goal a to development in film the balanced market, CJ CGV achieve is implementing low- a cooperative to to project expand medium-budget films in Korea by discovering directors. new same the At time, performingare we various volunteer Donation seats, as CGV Barrier-Freeactivities, such Movie Film our volunteer Class Toto’s Making under and Day cultural the divide ‘Donation Seats’ to reduce service brand, fosterand cultural talents. CGV isCJ alsocooperating withsmall as stakeholders, business such operators, social enterprises organizations nonprofit in theaters the and of region. each CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE we actively as innovation CJ CGV is and promoting change workour goal towards to becomeglobal 1 Cultureplex the No. to satisfy customers stakeholders. all,Above being and committedaware of and to resolving issues within movie the industry, CJ CGV focuses our CSV capabilities various on win-win activities. representative Our CSV 2016 CJ CSV REPORT 3 76 67 53 81 93 114 100 35.8 86.9 99.9 2016 3352 0.006 2 76 55 54 63 75 80.3 74.7 99.9 94.6 33.1 2015 2817 0.014 2 73 54 42 81 75 100 74.9 96.4 35.1 2014 2988 112.3 0.005 3 7 47 19 914 408 140 2016 % % % % 2 7 Unit 43 13 Hour Point 896 438 137 Person Person Person Person Person 2015 (Unit: 100 million KRW) MillionKRW APPENDIX 10,000 KRW 2 7 38 17 864 430 130 2014 Male Female Male Female CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 113 Woodwork Sharing Class Donation Seats of Walking” “Queen KEY PERFORMANCES ON CSR CREATION AND ALLOCATION OF AND ALLOCATION CREATION ECONOMIC VALUE Category Customer satisfaction rate per hour employeeTraining per expenditure Training employee Completion rate of sexual harassment prevention training Completion rate of integrity education of femaleNo. managers of employeesNo. took who leave parental Donation employeesNew rate Accident Category Direct Creation of Economic Value Allocation of Economic Value Shareholders (Dividend) Employees Welfare) (Wage and and Executives Government (Tax) Creditors (Interest Expense) CommunityLocal (Donation) REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ CONTRIBUTION TO COMMUNITIES LOCAL DIVIDE REDUCING THE CULTURAL CJ CGV operatesculture of sharing a number projects to ease Card’, ‘Donation Seats’, as ‘Munhwanuri culturalthe gap, such ‘CGV ‘Temporary Barrier-free Movie Theater’. and Movie Day’ ‘Donation Seats’ is a project inviting culturally the neglected, children from as low-income families disabled,such the and them opportunity to with provide to movie theatersan and movies a regular watching on enjoy Card’, basis. ‘Munhwanuri offerswhich movie tickets for on customers discounts from low-income group,the aims disparity the at preventing of fromincome becoming a cultural gap. ‘Barrier-free’ movies with a video subtitles description Korean and service are ‘CGV Barrier on screened vision to the help Free Movie Day’ hearing impaired In movie-going. of experience and the enjoy addition,cooperates CJ CGV with local governments through ‘Temporarythe Movie Theater’ latest the to project screen movies for residents of culturally the isolated reduce areas and cultural gap caused by geographical reasons. FOR ACTIVITIES VOLUNTEER COMMUNITIES LOCAL CJ CGV visited welfare centers to perform various volunteer making as furniture,activities wall-painting, such making kimchi, blood charity donation, baby care, etc. vazaar, Participatingbiz-related in the charity activities, raisedwe Furthermore, Lady’. with storyfilm, the Bacchus ‘The funding our of 40 employees ‘Warm project, joined the Winter for Seniors and Living with Alone’ MIRAL Welfare the Foundation assisted their and cleaning home affairs shopping, including installing insulation sheets. STRENGTHENING COMMUNICATION AND AND COMMUNICATION STRENGTHENING WITH STAKEHOLDERS COOPERATION communication withCJ CGV carried mutual various out stakeholders marketing through partnership conferences, mediaforums, allocation screen committee meetings and other regular meetings. DEVELOPING ETHICAL CORPORATE CULTURE CORPORATE ETHICAL DEVELOPING to and practices unfair orderIn corruption to prevent and establish environment ethical within organization, an the CJ CGV strives to improve awareness ethical of employees the partners that of the on by regularly education and providing fairanti-corruption prepare for trade. We thoroughly and corruption reports prevention by receiving unfair practices on ‘Cyber Room’ the Watch through CGV website. the on BUILDING A DIVERSE AND FAMILY-FRIENDLY ENVIRONMENT employment equal CJ CGV ensures to provide opportunities diversity expand within organization.to the all and As of female2016, employees total company’s take the of 49% up of female number the employees and employee in count, manageror higher the year positions through each is increased efforts to strengthen gender equality. CJ CGV also creates family-friendlya environment organizing by ‘Family and Day’ parental leave. by guaranteeing and ‘Culture events Day’ CREATING AN ECOSYSTEM OF CREATING INDUSTRY FOSTERING A FILM INDUSTRY ECOSYSTEM government, Korean the film entities26 including large corporationsorganizations and joined to form ‘Korea the Commission for of Film Shared Growth the Industry’ with a polarizationgoal to address small- large-scale between and distribution in film the agencies and industryproduction and a systematicto build ecosystem of shared growth. Since making been efforts CJ CGV has then, detailed to practice implementation film for the plans building industry ecosystem fairof competition, improving by as expertise the such fieldof the staff, making it mandatory for companies the the to guarantee offer coverages and four the insurance minimum period screening CGV CJ addition, In week. one of efforts dedicating shared growth is continuously to achieving filmin the industry entering by into labor a management - - government agreement to promote development the of film welfare the the thoseof increase industry in Korea and standard strengtheningworking the in thus this industry, and a wage introducing managementlabor and system contract for industry workers. 76 74 67 35.8 2016 2016 (Unit: Score) 76 73 55 33.1 2015 2015 112 73 73 77 19 2014 2014 % Unit Person BRAND COMPETITIVENESS INDEX ASSESSMENT DIVERSITY INDEX Category of femalesNo. in positions above Manager Team Female Manager ratio Team above Category CompetitivenessNational Brand (NBCI) Index National Customer Satisfaction (NCSI) Index SAFETY STRENGTHENING CJ CGV implements strict risk control considering special the characteristicsmulti-purposea as facility business. This isthere because is a highpossibility indirect direct of and damages by factors to trigger a fire within and building the alsopotential the risk of of casualtiesoutbreak an upon fire. An automatic fire warning system is installed in order to swiftly customers evacuate accident of an in event the been have plans . In addition, emergency evacuation operated simulation. through Most of all, CJ CGV focuses on employees’developing risk abilities. handling We share risk- related cases with employees train them fastest of the and method of risk reporting. ‘Safety In 2016, the training Guard’ program of Seoul Metropolitan Fire & Disaster Headquarters approximately quarterly,was provided which through 120 employees techniques learned emergencykey the handling to administer how use fireincluding CPR and hydrants. ENHANCING BRAND VALUE ENHANCING BRAND product year, CJ CGV is assessed and Each of its brand competitiveness NBCI assessment. NCSI and through In 74 points in customer2016, we recorded satisfaction in NCSI surveythe intheater movie the service category, from 1.4% by year. previous the At the increased which same time, we scored 76 points NBCI survey in the in the multiplex category, position 1 No. maintaining the for seven solidified has CGV CJ years. such, As consecutive position the Korea’s multiplexas leading loved by is that continuously customers. 2016 CJ CSV REPORT APPENDIX nternational Call 00747 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV helloUHD tv ‘hello next-generation the UHD’ provides tv broadcasting platform with ultra high definition video service, almost four times Full more HD TV. With UHD channel, vivid than the subscribers ultra enjoy can high definition with contents the same immersive vivid quality in theaters. as and hello tv firstAs the in world the to commercialize duplex digital ‘hellobroadcasting, 170,000 VODs over more tv’ provides than ‘hello tv Smart’240 channels. offers PVR a time-machine and subscribers missed replay by which can scenes. functions, hello internet GIGA ‘hello internet fastest the provides GIGA’ internet service in Korea at reasonable prices. Using ‘hello internet GIGA,’ it takes a movie with running to download a two-hour 15 seconds only time. It promises faster lifestyle by offering speed of 1Gbps, the is ten timeswhich faster existing than internet services. hello phone callsWith Hello between ‘hello Vision phone,’ subscribers are alsofree of charge. offers ‘hello phone’ fee unit cheapest the for domestic calls in Korea. anywhere I With ‘00747,’ users make international can calls to 26 countries at 50 KRW per with minute their or home phones mobile phones. hello rental With this service, latest-model the users purchase TVs, can installment a 36-month on other home appliances PCs and Fromplan. essential to premium home appliances products, ‘hello offers rental’ after-sales service forthree years. hello cam ‘hello cam’ is a home camera surveillance with zero blind spots in homes It offers or shops. a monitoring, two-way intruder alertcommunication function, home system and remote control function. appliance Vision Cloud serviceAs a cloud for enterprises, ‘Vision offers Cloud’ a VM server, network, delivery storage content and network (CDN) with tailored media infrastructure sector for including each game, film, e-commerce. e-learning and hello mobile ‘hello mobile’ by improving reasonable provides plans on three majorthe carriers’ high-cost systems, include which distribution costs, operating costs, advertising cost, etc. It offers to save reasonable plans up to 50% of communications cost. 115 - 2016 2016 53,610 42,734 50,355 27,609 411,923 120,786 269,393 219,038 217,603 825,331 598,919 853,254 1,100,635 4,119,228 (Unit: Person) REPRESENTATIVE CSV PROJECTS REPRESENTATIVE (Unit: 1 million KRW) 2015 2015 88,328 54,113 18,460 54,169 80,959 408,542 132,097 262,759 208,590 225,683 860,253 673,167 843,350 1,182,613 4,102,128 2014 2014 93,255 58,386 18,453 423,194 140,440 286,984 163,812 123,173 221,096 121,823 914,567 746,964 832,293 1,270,376 4,145,660 CSV MANAGEMENT CSV * - VOD - Service - Device Transferred to CJ E&M in 2016 STATUS SALES SUBSCRIBER STATUS * Category Broadcasting Internet VoIP Tving Hello Mobile Home Shopping Others Total Category Cable TV Internet VoIP MVNO CJ BUSINESS OVERVIEW ICT environment, CJ HelloVisionAmid changing rapidly the strives to position ourselves leader the as smart of the platform was business. service, UHD started which by CJ HelloVision first the as world, in the suggested a new directivity for popularization leads media the the industry and ultraof the high-definition market. content In Korea, CJ commercial-levelHelloVision giga launched internet service jump in internet the a quantum about speed brought and standstill been that had for over ten years. In addition, Hello products service withMobile, unprecedented phone budget a is rate establishing plans, and itself alternative an as for communications expenses. CJ HelloVision household reducing Care’ total service, and ‘Managed concept, new the provides in addition latest to the are essentialthat home in appliances everyday life. www.cjhellovision.com in next-generation the ’ the firstthe ‘ Smart Life Solution Pioneer Developing into a service platform, creates lifestyleswhich new service of convergence innovative based on communication/lifestyle.broadcasting Hello Everywhere! All moments the of life meet world everywhere with Hello! connected in the 114 VISION & SLOGAN VISION SLOGAN VISION & MISSION world, the “Hello!” change is people that can A word a starting in all conversations. point that connects In this simple word, power. belief With in importanceCJ HelloVision magical the fundamental the of intimate connecting found interpersonal communication, CJ HelloVision of expanding a means communications as will role the of media and makecommunication the and best effort customers’ to reach create daily a closer lives friendlier and world. and CJ HelloVision is smart No.1 the media platform contents. that creates value beyond CJ HelloVision associated been with always title has the to be from as digital communications market, such cable and broadcasting TV to UHD broadcasting, ‘Hellogiga Mobile’ services. broadcasting phone, cloud is Korea’s 1 budget Internet creating No. and mobilea new culture with differentiated the services world’s the of CJ. With creative the mind and top-level technology, CJ HelloVision, a smart media platform leader, is into developing a broadcasting servicecommunication platform & convergence that creates lifestyle. new 77,446,865 shares 53.92% CJ O Shopping KRW 1,100.6 billion Dong-sik Byun 31, 1995 March Cable television, high-speed information network, virtual mobile communications network (HQ) Dream Tower, 56-gil, Mapo-gu, World Cup buk-ro KoreaSeoul, 82-1855-1000 Tel.

COMPANY PROFILE COMPANY Stock VolumeStock Shareholders Sales CEO Date of Establishment BusinessMain Info. Contact 2016 CJ CSV REPORT APPENDIX CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 117 Hello TV Emergency Alarm Service service broadcasting As a local provider, CJ HelloVision is committed resolving to discovering social issues and in local communities. Hello TV Emergency Alarm Service is a social safety service net a warning text message to send to a social service worker a user when (single-person senior household, citizens living does alone) TV for watch not a certain period of time or during a specific time period. Usingthis service of nice-media technology to look for signs of abnormal situations user’s the through pattern, TV watching CJ HelloVision cooperates with community local organizations so to swiftly as to emergency respond cases involving single- senior citizensperson and living With households alone. the mediatechnology, HelloVisionCJ is social to the contributing willsafety in way promoting lead the net and general smart technology the to applying by homeservice advancement smart services. REINFORCING BUSINESS COMPETITIVENESS In 2011, CJ HelloVision commercialized giga internet service offering speeds ten times faster existing than for ones the first time performing been in we have Korea; thus, a leading communications convergence role and broadcasting in the competitivemarket with its advanced power. In 2013, streaming a cloud we introduced solution to digital cable alsobroadcasting, first the as more provided in Korea, and diverse smart services N screen to existing TV and digital cableservice subscribers. creative servicesproviding By in customer market with environment changing the and tune CJ HelloVisionneeds, entered Vietnamese the market in first the 2016 as May in TV platform Korea’s pay service industry. Entering into a comprehensive technological consulting agreement that covers export the of “cloud technologybroadcasting” with Saigontourist Cable Television TV service Company 1 pay No. Vietnam’s (SCTV), provider, CJ HelloVision demonstrated further upgraded competitive for global the media powerfoundation a prepared we as business.

Strengthening local P.R. for volunteer activities REPRESENTATIVE CSV PROJECTS REPRESENTATIVE Service Service Service Location Location Location CSV MANAGEMENT CSV by local by local residents Participation Promoting diversity Improving employees’Improving Expanding local residents’ local Expanding SO participation and beneficiariesparticipation and in volunteer activites by region interest / voluntary participation CSR Camp Launching SCR Campby region Launching CSR CAMP DIRECTION CJ CSV PERFORMANCE CSR Camp by Region Launching 23 volunteer the CJ HelloVision camps across launched incountry order to promote voluntary services by region. Using(systemSO base operator) and organizations zone by CJ HelloVisioncamps regional of the channels, performs community-oriented volunteer activities those rather than volunteer the camps, office. ledhead the by Launching CJ HelloVision participated volunteer in company-wide a large-scaleservices Kimchi including sharing with 1,000 other community monthly local residents, services. and While effortsdedicating to improving locality the cable of the TV service, CJ HelloVision’s a as volunteer camps will advance for volunteer‘think tank services’ discover actively that social issues within offer a region and customized solutions for the issues. Establishing Shared Value communication Social SafetySocial Net Vitalizing community Reinforcing AccessibilityReinforcing new value creation Promote Discover innovation forinnovation CSV initiatives residents EARDREAM Alarm Service for Media Local convenience for convenience Strategic Task Enhance viewing viewing Enhance of senior citizens CORE VALUES CORE VALUES the visuallythe impaired Hello TV Emergency Hello, Community School Media education forMedia education local STRATEGIC GOAL STRATEGIC CSV Initiative Direction CJ HELLOVISION’S CJ HELLOVISION’S Prevent the solitary the Prevent deaths FUNDAMENTAL VALUE FUNDAMENTAL Strengthen competitivenessStrengthen of FOR CSV MANAGEMENT new local shared growth with communities local Expand Expand Expand markets Materialize best the CSV in industry the for business to communities local businesses by creating sustainable values contribution tocontribution Members’ Mindset · Locality · Sincerity · Sustainability Safety Culture Win-win Main ThemeMain cultural activities Strengthening local Strengthening Supporting for local communities’ welfare Reducing the social the divide Reducing CSV DIRECTION 116 CSV (CREATING SHARED VALUE) VALUE) SHARED CSV (CREATING PERFORMANCE CEO MESSAGE itsAs a businessthat has in very local foundation communities, HelloVision CJ is founding realizing Group’s CJ philosophy of Business Patriotism media-based through CSV initiatives volunteer with local communities. By launching region,camps for we developed community-centered each activities. same At the time, we are supporting vulnerable the groupwithin region the so to form as and a social consensus culture the of sharing.spread HelloVision CJ will continuously communicate with communities local while the spreading volunteer activities.social value of CSV and STRATEGY CSV IMPLEMENTATION fulfillTo vision the of ‘Smart Life Solution Pioneer’, CJ HelloVision strives to implement to best the CSV business strengthen competitive the power of local businesses and create value growth of shared the with communities. local media accessibility increase underprivileged the of To with CJ HelloVision’s communications and broadcasting itcapacities, offers ‘EARDREAM’, a TV service for visually the impaired. resolve To social issues broadcasting through ‘TV Emergency the Alarm communications, we provide and Service’, a program senior to prevent citizens’ death by solitude. In addition, to vitalize local media ecosystems, CJ HelloVision operates ‘Hello, Community School for Local Media’, a media program education for local residents. CJ HelloVision locality strengthens the of its cable television ‘Community-based the serviceBroadcasting running by community local Program’ residents which through prepare regarding community contents news. produce and 2016 CJ CSV REPORT 0 38 41 19 100 71.2 2016 1,260 2,302 8 20 188 190 100 70.6 2015 1,415 2,996 4 11 253 215 100 63.8 2014 1,248 3,259 % Unit Hour Point Person Person Person MillionKRW APPENDIX 10,000 KRW Male Female CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 119 Mural Painting Activity for Village Local Regeneration Project Live Broadcasting to Raise Funds for Forest toLive Raise Broadcasting Funds Fire Victims in Gangwon-do ActivitiesVoluntary for Victims Earthquake in Gyeongju KEY PERFORMANCES ON CSR Category Customer satisfaction rate per hour employeeTraining per expenditure Training employee of employeesNo. to complete sexual on education harassment prevention Completion rate of integrity education of employeesNo. took who leave parental Donation REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV CJ LOCAL TO CONTRIBUTING COMMUNITIES COMMUNITY-ORIENTED SHARING ACTIVITIES Raising ProgramFund In 2016, CJ HelloVision aired live a special fund-raising programneighbors to needy help for wintering. the Through that was carried in fourbroadcast areas, local companies out The of KRW 330,129,190. residentsraised total funds and welfare through was donated organizations to raised fund medical emergencyhelp with living expenses of neglected and neighbors. Disaster Broadcasting a disasterWhen HelloVision CJ breaks out, airs special reportsnews together with a disaster to manual handling safety the ensure residents. local of For earthquake that the in Gyeongjuoccurred in September 2016, ‘hello tv’ delivered information situation the on tickernews a through a local on In addition, a total of 31 earthquake-related news channel. reports were aired. reports All news special were broadcast live local channel the to local residents through only not also station’s local broadcasting of ‘hello the tv,’ but SNS other, residents wishing The (Facebook). communicated each for safety by writing the another, of one comments the on SNS page postings. CJ HelloVision will to the ensure continue safety residents of local by transmitting disaster broadcasting swiftly situations delivering local through accurate and the channels. Employees’ Activities Voluntary for Disaster Relief employees200 HelloVision’sCJ of OctoberIn around 2016, and Gyeongsangbuk-do officehead in and Seoul HeadquartersGyeongsangnam-do performed voluntary activities in Gyeongju victims the to aid earthquake and of the restored They Chaba. farm damaged crops Typhoon the by disasters residential the cleaned areas in Oedong-eup, and Gyeongju-si industrial facilities where and farmland the were sufferedflooded. which In Yangsan-si, considerable damage employees landslides, and caused by flooding,blackout restoring on focused communal facilities. also They cleaned restored floodedthe a citizens’ and drainage park canals measuring approximately 661,160 ㎡ in area. Fund Raised Fund KRW 7 million + 380kg of rice KRW 54 million KRW 50 million KRW 110 million KRW 108 million + 160 bags of rice (90 min.) (90 min.) (60 min.) (120 min.) (120 min.) Live broadcast Live broadcast Live broadcast Live broadcast Live broadcast Broadcasting HoursBroadcasting Date 23 (Fri.) 24 (Sat.) 20 (Tue.) 22 (Thu.) 2:00 PM on 2:00 PM on Dec. 30 (Fri.)Dec. 10:00 on Dec. Dec. 10:00 on Dec. 10:00 on Dec. 14:00 on Dec. 14:00 on Win-Win Day Event at Customer Event Win-Win Day Service Center Supporting at Customer CS Training Service Center Hello Partners’ Club Cooperating Organization Office, Community Yangcheon-gu Chest of Korea Office, CommunityEunpyeong-gu Chest of Korea Babsang News, Kangwon Community Welfare Social Center Share Hope Foundation WelfareShare Love Foundation 118 Sharing Love Fund-raising Sharing Fund-raising Love Sharing Hope Fund-raising Sharing Hope Fund-raising th th Event for toLive raise broadcasting funds winter 2017 for toLive raise broadcasting funds winter 2017 raising 3 million to donate Fund briquettes 4 The Festival with CJ HelloVision Festival with CJ HelloVision 4 The Yangcheon SO Eunpyeong SO Yeongseo SO Ara SO FUND-RAISING BROADCASTING IN 2016 FUND-RAISING BROADCASTING Region Gyeongin Media Center Gangwon Media Center Honam Media Center FOSTERING A WIN-WIN ECOSYSTEM FOSTERING A WIN-WIN SUPPORTING PARTNERS HelloVisionCJ sustainable is strengtheningsincerea and joint growth ecosystem by operating ‘Hello the Synergy Program’. we operated In 2016, 20 programs that monthly are specialized to working the environments of our partners, for as after-salessuch cable installation service and work. Management ‘Shared Growth the key activitiesThe include Improvement Program’, is aimed which securing a at for basic competitive foundation work power, ‘standardized to create supply’ equipment a safe working environment, ‘Partners’ to improve Event’ Club communication with ‘provisionpartners of supplies and for summer hot the / cold winter’. Based these on programs, CJ HelloVision will to promotecontinue shared growth with expand partners and ecosysteman of virtuous cycle. OF ETHICAL IMPLEMENTATION MANAGEMENT HelloVisionCJ highest the places priority providing on to customers, entertainment convenience good a and working environment for employees useful information and diverse cultural promotionaland opportunities to local principles to we adhere communities. the and this end, To management transparent operate and honest an basics, and process. In addition, CJ HelloVision follows work the ethics with compliance socialregulations, that include standards internalcompany’s work norms ethics rules regarding and stakeholders. We also make effort the to promote compliance to with improve with regulations businessan practices and online ‘cyber management’ ethical program, while solidifying management ethical the mindset our of employees through online integrityannual education. CJ CSV MANAGEMENT REPRESENTATIVE CSV PROJECTS CSV MANAGEMENT OF AFFILIATES APPENDIX

CSR INDEX

CATEGORY UNIT 2014 2015 2016

EMPLOYMENT & Executives & Employees Total Person 21,630 22,913 24,160 RECRUITMENT Executive Person 208 229 236 Employee Person 21,422 22,684 23,924 By Employment Status Permanent Employee Person 20,853 22,200 23,588 Contract Employee Person 777 713 572 By Region Korea Person 21,138 22,392 23,583 China Person 195 194 216 Japan Person 23 23 20 Southeast Asia/ Australia Person 186 192 219 05 North America Person 53 63 52 Europe Person 16 15 24 Others Person 19 34 46 By Employment Type Manufacturing Person 4,737 4,827 4,619 Management Support Person 2,909 3,781 3,456 Sales/ Marketing Person 5,444 6,105 6,654 APPENDIX R&D Person 824 895 828

IT Person 889 894 995 2016 CJ CSV REPORT Others Person 6,827 6,411 7,608 Employment Average Year of Continued Year 7.1 7.1 7.1 Employment Employee Turnover Rate % 13.5 10.7 15.7 Recruitment Male Person 1,701 2,018 2,474 Female Person 1,160 1742 2,310 DIVERSITY Gender Male Person 14,754 15,310 15,974 Female Person 6,668 7,374 8,186 Diversity No. of Female Employees Person 975 1,137 1,265 above Team Manager Rate of Female Employees % 17.0 18.4 18.7 above Team Manager FEMALE-FRIENDLY No. of Employees who used Parental Leave Male Person 20 30 36 Female Person 451 470 451 Return rate after Parental Leave Male % 76.5 85.7 86.1 Female % 82.8 88.5 88.2 Rate of continued employment Male % 41.2 71.4 84.6 over 12 months after the return Female % 72.1 81.7 79.6 EDUCATION & TRAINING Employee Education Hours Training Hours per Employee Hour 52 50 60.6

LOCAL COMMUNITY Volunteer work of Executives and Employees Service Hours per Employee Hour 11 6.7 5.9 SUPPORT Contribution Contribution of the Group & KRW million 82,474 97,773 113,430 Affiliates

CSR INDEX 121 FINANCIAL STATEMENT 122 GLOBAL GUIDELINE 124 EXTERNAL REVIEW 127 EFFORTS TO SPREAD CSV AND CSV AWARDS RECORD 128

120 121 2016 CJ CSV REPORT

7,375 7,339 7,425 7,389 (528,892) 1,594,982 (7,970,594) 36,865,207 24,137,741 18,179,995 (25,353,448) (24,824,556) (50,081,225) (61,885,608) 165,591,089 262,414,357 586,541,914 478,681,976 384,490,557 797,319,488 288,686,344 508,633,144 508,633,144 209,165,289 299,467,855 569,823,382 494,388,709 218,015,219 276,373,490 (Unit: 1,000 KRW) (Unit: 1,000 KRW) 7,269,971,481 1,152,461,178 6,089,925,544 5,086,807,659 1,003,117,885 19,572,301,244 10,947,412,289 13,482,375,700 PERIOD 62 PERIOD 62

0 7,242 7,214 7,292 7,264 1,763,571 (5,437,866) (8,140,232) 73,900,155 From January 1, 2016 to 1, DecemberFrom 31, 2016 January 2015 to 1, DecemberFrom 31, 2015 January 2014 to 1, DecemberFrom 31, 2014 January 1, 2016 to DecemberFrom 31, 2016 January 1, 2015 to DecemberFrom 31, 2015 January 1, 2014 to DecemberFrom 31, 2014 January (31,089,311) (31,089,311) (24,346,528) (12,532,001) 303,715,541 290,447,843 605,700,120 163,322,606 113,092,802 451,603,036 734,890,361 183,774,814 551,115,547 551,115,547 205,792,550 345,322,997 551,115,547 495,679,708 182,340,964 313,338,744 7,656,960,588 1,266,447,122 6,693,155,015 5,467,824,749 1,225,330,266 21,166,707,211 11,865,683,805 14,473,552,196 PERIOD 63 PERIOD 63 APPENDIX

0 7,837 7,816 7,887 7,866 3,435,977 (1,960,569) 78,433,239 69,997,151 79,521,389 44,639,169 33,406,812 (50,708,257) (50,708,257) 462,431,961 284,926,190 595,910,787 188,059,036 404,718,073 795,266,748 225,443,366 569,823,382 569,823,382 223,028,021 346,795,361 508,633,144 537,446,276 217,982,415 319,463,861 8,713,449,723 1,266,665,731 7,452,239,645 6,199,326,414 1,252,913,231 23,954,197,397 13,433,216,743 16,501,957,752 PERIOD 64 PERIOD 64 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 123 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV Gains on sale on Gains of commodities (sales) sale on Gains of services (sales) (sales) contracts construction on Gains (sales) income Rental Other (sales) income Owners company of the Non-controlling interests Basic earnings per share Diluted earnings per share Basic earnings per preferred share (Unit: KRW) Diluted earnings per preferred share (Unit: KRW) Share of other comprehensive profit or jointly loss controlled of associated entities and Actuarial profit (loss) in value of available-for-saleChange assets financial Share of other comprehensive profit or jointly loss controlled of associated entities and statements financial of foreignTranslation currency valuation on of derivativeGains instruments holdersEquity company of the Non-controlling interests CATEGORY CATEGORY Profit (loss) for year the Items reclassified not profit as or loss Items reclassified subsequently profit as or loss comprehensive for income Total year the Attributable to: Operating revenue sales of Cost Gross income administrativeSelling and expenses Operating (loss) income income Financial expenses Financial Share of profit jointly controlled of associates entities and Other income Other expenses Profit (loss) before tax income tax expensesIncome (loss) operationIncome from continuing Profit (loss) for year the Profit (loss) attributable to: Earnings per share FINANCIAL STATEMENT Consolidated Statements of Income FINANCIAL STATEMENT FINANCIAL Consolidated Statements of Income CJ Group and CJ Affiliates and CJ Group CJ Group and CJ Affiliates and CJ Group CJ (Unit: KRW) 1,000 61,932,350 18,563,527 14,213,156 90,701,020 49,441,264 20,402,163 (97,313,021) 991,166,042 864,030,761 227,885,772 104,753,704 624,417,159 645,500,536 310,651,293 465,975,870 239,309,403 337,523,486 690,139,619 232,002,915 750,424,218 161,289,071 157,451,955 983,970,984 544,558,392 242,904,304 786,583,048 572,063,598 141,979,483 160,697,516 6,889,134,782 9,108,937,572 4,313,115,007 2,361,280,447 5,664,484,144 2,516,322,061 1,421,771,573 1,302,361,117 2,164,251,359 1,438,474,556 6,768,677,347 2,456,585,465 2,937,834,735 7,110,065,936 1,141,422,939 16,045,430,326 PERIOD 62 9,069,874,509 23,039,318,812 13,969,444,303 23,039,318,812 0 Period 64: As of December 31, 2016 Period 63: As of December 31, 2015 Period 62: As of December 31, 2014 6,623,190 9,805,457 51,141,544 28,537,526 42,243,037 17,897,004 (70,136,021) 605,950,246 870,068,511 269,048,117 535,095,029 261,630,827 344,941,212 615,418,191 234,282,272 920,760,216 573,667,572 103,595,513 643,956,805 186,005,785 260,141,892 757,780,769 168,498,713 157,698,560 988,898,991 317,407,463 350,654,221 9,475,638,230 4,249,566,250 6,943,581,894 1,195,080,774 1,398,350,609 2,050,571,122 1,983,808,940 6,014,171,244 1,420,790,955 3,160,813,089 2,524,739,630 6,262,254,868 2,655,668,392 1,495,391,511 7,684,516,234 1,146,597,551 16,611,938,422 PERIOD 63 9,863,456,028 23,562,143,506 13,698,687,478 23,562,143,506 0 6,496,114 8,495,155 88,962,072 47,209,039 33,635,153 19,052,424 614,387,912 810,388,389 477,372,001 290,759,761 277,969,305 621,968,282 301,907,469 411,600,019 404,505,599 393,813,951 649,158,796 119,804,563 762,789,421 194,612,631 258,358,586 839,633,101 184,449,026 157,914,810 992,993,627 (114,587,283) 7,855,955,000 1,169,282,970 5,736,100,647 3,284,666,049 1,699,383,558 1,762,992,046 2,882,199,670 1,350,853,977 1,125,893,176 7,092,951,443 1,834,967,495 3,728,243,027 2,699,483,254 7,518,645,295 8,662,186,804 1,150,908,437 19,147,136,836 10,372,814,813 PERIOD 64 27,009,587,950 15,755,138,247 11,254,449,703 27,009,587,950 122 Cash and cash equivalents cash Cash and Short-term instruments financial Short-term receivable loans receivables Trade assets Other current financial payments Advance Biological assets Other current assets Available-for-sale assets financial in method equity Investment stocks accounted assets Tangible Intangible assets Investment properties assets financial Other non-current Deferred tax income assets assetsOther non-current payables Trade Short-term borrowings Current borrowings portion non-current of debentures and payables Non-trade liabilitiesOther current financial taxesIncome payable Current provisions for liabilities charges and Other current liabilities Long-term borrowings Deposits received liabilities financial Other non-current Retirement benefit liabilities Deferred tax income liabilities provisionsNon-current for liabilities charges and liabilitiesOther non-current Capital stock capitalPaid-in in excess of par value Inventories Current assets for held as sale assetsNon-current ASSETS TOTAL Current liabilities Liabilities for held sale liabilitiesNon-current Debentures LIABILITIES TOTAL capitalPaid-in Other components of equity earningsRetained (deficits) Non-controlling interests EQUITY TOTAL Current Assets CATEGORY TOTAL LIABILITIES AND EQUITY LIABILITIES TOTAL EQUITY LIABILITIES ASSETS CJ Group and CJ Affiliates and CJ Group Consolidated Position Statements of Financial FINANCIAL STATEMENT FINANCIAL 2016 CJ CSV REPORT BEST 2.0 EC1 EC2 EC6 EC7 - EV7 EV5 EV5, CS8 EV9 EV12 EV12 EV4 EV17 EV16 EV23, EV25 EV31 EV30 PAGE 36~63, 64~119, 122, 123 28, 29 30~33 36~63 36~63 28, 29, 71, 77, 89, 95, 101 70, 89, 95, 101 70, 89 28, 77, 95 28, 71, 89, 95 28, 71, 89, 95 28, 29, 70, 89 29 71, 77 58, 69, 77, 89 28, 29 89, 95 APPENDIX SECTION Representative CSV Projects for Implementation of UN SDGs, CSV Management of Affiliates, Statements Financial Environmental Management ResponsibilitySocial Representative CSV Projects for Implementation of UN SDGs Representative CSV Projects for Implementation of UN SDGs Environmental Management, CSV Management of Affiliates CSV Management of Affiliates CSV Management of Affiliates Environmental Management, CSV Management of Affiliates Environmental Management, CSV Management of Affiliates Environmental Management, CSV Management of Affiliates Environmental Management, CSV Management of Affiliates Environmental Management CSV Management of Affiliates Representative CSV Projects for Implementation of UN SDGs, CSV Management of Affiliates Environmental Management CSV Management of Affiliates ■ Fully reported▣ Partially reported reported □ Not N.A. ◇ ISO 26000 6.8.1-6.8.2 / 6.8.3 / 6.8.7 / 6.8.9 6.5.5 6.3.9 / 6.8.1-6.8.2 / 6.8.7 / 6.8.9 6.3.9 / 6.6.6 / 6.6.7 / 6.7.8 / 6.8.1-6.8.2 / 6.8.5 / 6.8.7 / 6.8.9 6.4.3 / 6.6.6 / 6.8.1-6.8.2 / 6.8.7 6.5.4 6.5.4 / 6.5.5 6.5.4 / 6.5.5 6.5.4 6.5.5 6.5.5 6.5.5 6.5.3 / 6.5.4 6.5.3 6.5.3 / 6.5.4 / 6.5.5 / 6.7.5 4.6 6.5.4 / 6.6.6 CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 125 REPRESENTATIVE CSV PROJECTS REPRESENTATIVE DESCRIPTION The direct distributed valueThe generated economic and implications opportunities other risks forFinancial organization’s and and the activities due to climate change services impact of infrastructure investmentsDevelopment supported and and extent the of impacts Significant impacts, including economic indirect local suppliersProportion on at significant of spending locations of operation Energy consumption within organization the of energy consumptionReduction services in energy and requirementsReductions of products waterTotal withdrawal by source gas (GHG) emissionsDirect Greenhouse gas (GHG) emissions Greenhouse Indirect of greenhouse gasReduction emissions waterTotal destination discharge by quality and disposal weight of wasteTotal by type and method Extent of impact mitigation services and of environmental impacts of products Monetary value for of significant non- sanctions total of non-monetary number fines and regulations withcompliance environmental laws and materialsSignificant other goods and environmental and impacts for of transporting products organization’sthe operations CSV MANAGEMENT CSV G4-EC1 G4-EC2 G4-EC7 G4-EC8 G4-EC9 G4-EN3 G4-EN6 G4-EN7 G4-EN8 G4-EN15 G4-EN16 G4-EN19 G4-EN22 G4-EN23 G4-EN27 G4-EN29 G4-EN30 Economic Performance Market Presence Economic Indirect Impact Proportion of Local on Spending Suppliers at Significant Locations of Operation Energy Water Emissions Effluents and Waste and Products Services Compliance Transport SPECIFIC DISCLOUSRES CATEGORY 2. ECONOMICAL ENVIRONMENTAL GLOBAL GUIDELINE GUIDELINE GLOBAL CJ BEST 2.0 A_1 A_3 A_4 A_5 A_7 A_8 A_9 A_10 EM1 EM12 - B_8 GR11 GR10 A_11 A_5, A_6 - - B_1, B_2 B_1, B_2 - B_5, B_8 C_1 C_1 C_2 C_3 B_3 - B_6 B_9 B_10 B_7 GR1 EM26 PAGE 2, 3 7 8~12 - 13 6, 7 8~12 8~12, 121, 122, 123 121 - 60~115 - 22~27 22~27, 28~29 128 122, 123 34, 35 34, 35 34, 35 34, 35 - - 34, 35 34, 35 34, 35 34, 35 - - - - - 127 14, 15 18, 19 20, 21 SECTION Chairman’s Message Overview CJ Group BusinessOverview This ReportAbout Global Status Historyof CJ Group Business Overview Business Overview, CSR Index, Statements Financial CSR Index N/A CSV Management of Affiliates SignficantNo Changes Safety Management Safety Management, Environmental Management Efforts CSV and to Spread Record CSV Awards Statements Financial Materiality Assessment Materiality Assessment Materiality Assessment Materiality Assessment Changes No SignificantNo Changes Materiality Assessment Materiality Assessment Materiality Assessment Materiality Assessment This ReportAbout This ReportAbout This ReportAbout This ReportAbout This ReportAbout External Reviews Structure, CSV Governance CSV Management ManagementEthical ■ Fully reported▣ Partially reported reported □ Not N.A. ◇ ISO 26000 5.2 / 7.3.2 / 7.3.3 / 7.3.4 5.3 7.5.3 / 7.6.2 6.2 / 7.4.3 / 7.7.5 4.4 / 6.6.3 4.7 / 6.2 / 7.4.2 6.3.10 / 6.4.1-6.4.2 / 6.4.3 / 6.4.4 / 6.4.5 / 6.8.5 / 7.8 124 DESCRIPTION Statement from most the senior decision-maker of organization relevance of the the about sustainability organization’s the to organization strategy the and for addressing sustainability. Basic information organization the on services and primaryThe products, brands, locationThe organization’s of the headquarters of countries where number The organization the names operates, of countries where either and organizationthe significant has operations or that are specifically to sustainability relevant the coveredtopics in report. the legal nature of ownershipThe form. and marketsThe served geographic sectors types breakdown, of customers served,(including beneficiaries) and and scaleThe organization of the (employers, operations, sales, net total or capitalization, services of products provided) quantity total workforce by region. type, and of employees number The and by contract percentageThe of total employees covered by collective bargaining agreements. organization’sThe chain. supply significantAny during changes reporting the period regarding organization’s the size, structure, ownership, or its chain. supply or principle is by the addressed precautionary approach the how Describe whether and organization. List externally social charters, environmental developed economic, and principles, or other initiatives organization the to subscribes it which or endorses. which List memberships of associations List all entities Boundaries, Explain for Aspect process the the defining report the and content organization the implemented how has and Reporting the Principles for Defining Report Content. List all material the identified Aspects forin process the defining report content. material withinFor organization. each the report Boundary Aspect, Aspect the material organization. the outside For each report Boundary Aspect, Aspect the Report restatements effect the of any of information in previous reports, provided restatements. for reasons the such and Report significant from reporting previous changes Boundaries. Aspect periods and Scope in the a listProvide of stakeholder groups engaged organization. by the Report basis the for identification selection of stakeholders and with whom to engage. of to stakeholder frequency Report engagement, organization’s the approach including by stakeholderengagement group. by type and raised stakeholder been through that have engagement, concerns Report and key topics its through including concerns, to and those organization key topics the responded how has and reporting. concerns. Report and stakeholder key topics the of the groups that raised each Reporting fiscal period as or year) for (such calendar information provided. Date of most previous report recent (if any) biennial) Reporting annual, as cycle (such point for questions regarding report contact the the Provide or its contents. to reference the option’ organization, and the GRI Content the index, Report ‘in the accordance report. externalthe assurance with regard for organization’s current to practice The seeking external policy assurance and relationship the provided, between external basis assurance report, of any the and scope the whether body or highest the providers, and governance assurance the organizationthe and forsenior are involved organization’s the executives in seeking sustainability assurance report. committees structure organization, of the including governance The highest of the governance body. Identify committees any responsible for decision-making environmental economic, on social impacts. and norms codes of conduct as of behavior organization’sThe and such values, principles, standards codes of ethics. and G4-1 G4-3 G4-4 G4-5 G4-6 G4-7 G4-8 G4-9 G4-10 G4-11 G4-12 G4-13 G4-14 G4-15 G4-16 G4-17 G4-18 G4-19 G4-20 G4-21 G4-22 G4-23 G4-24 G4-25 G4-26 G4-27 G4-28 G4-29 G4-30 G4-31 G4-32 G4-33 G4-34 G4-56 GENERAL DISCLOSURES CATEGORY ETHICS AND INTEGRITY GOERNANCE REPORT PROFILE STAKEHOLDER STAKEHOLDER ENGAGEMENT IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES 1. STRATEGY AND ANALYSIS ORGANIZATION PROFILE GLOBAL GUIDELINE GUIDELINE GLOBAL 2016 CJ CSV REPORT APPENDIX MAY 24, 2017 MAY Cho, Dong-Sung Cho, CSV MANAGEMENT OF AFFILIATES MANAGEMENT CSV 127 Honorary Chairman, Institute for Industrial Policy Studies (Application of materiality testing) Reviewer The confirms that based external of its identified expectations the internalupon and and needs stakeholders global CSR frameworks, well as those as required under issue may impact each the analyzed assessed has company the and its on have operations to prioritize its materiality findings. (Performance its affiliates) of CJ Corp and Reviewer The confirms that level reportingthe of management CSR performance on and indicators respective affiliate at the improvedhas and within Group the level compared reporting to previous the period. Set mid-to-long-term direction for aligned CSV projects, to the report their on qualitative and analyze performanceUN SDGs and in terms related of impact on communities; Establish a regular stakeholder engagement out that reaches process externalto both internal stakeholdersand to their reflect feedback in setting its overall management strategies direction; and Reinforce reporting quantitative performance on well as short, as mid, long-term core CSV business of CJ Group’s goalsand for each initiatives; and credibility and of CSR transparency, standardization, Improve all affiliates. and Group the performance data across and indicators RECOMMENDATIONS RECOMMENDATIONS ReviewerThe effort acknowledges in Group by the publishing its CSV Report 2016 to its share commitment performance and with hereby all stakeholders company and suggest following the for reporting future purposes. OF THE REVIEWER QUALIFICATIONS InstituteThe for Industrial Policy performs Studies assurance reports. CSV review undertakings Founded for and CSR and in 1993, it is a specialized expertise organization with accrued management, ethical as in related CSV socially such areas responsible management, sustainability management, etc., for review board 2002. The thissince Report is comprised of specialists environment, in business management, accounting, professors other disciplines, CSV, among includes at and major universities professionally Korean trained experts and with significant in CSV consultations. experience ------REPRESENTATIVE CSV PROJECTS REPRESENTATIVE CSV MANAGEMENT CSV (Functions responsible for Reviewer CSV) The confirms(Functions roles that the strengthened been have activities responsible of the functions and to strong commitmentthanks company’s that the from CEO, and the main representing CSV projects core values sought global by relevant on building reach, expanded gained momentum have and standards year. strong performancethe in preceding the achieved (Stakeholder engagement) Reviewer The confirms that CJ Corp. a framework in place put has for evaluating its CSV activities, using it been together has which with with engagement channels CSV Advisory the as expertsoutside such Committee to engage with its external stakeholders a regular on basis to their reflect feedback in setting overall the management strategies directions and for company. the Review of the roles and activities of rolesReview of the and responsible forinternal CSV functions (ex. CJ CSV Management Department CJ Creating / Team); Shared Value Stakeholder engagement activities: CSV Advisory Committee, expert interviews etc.; CSV projects, on Identification reporting core on issues of and materiality(based on test findings); Application of global guidelines etc.); (BEST, GRI, UN SDGs, CSV activities by CJ affiliates; and CSR performance of CJ affiliates. indicators - - CJ REVIEWEXTERNAL InstituteThe for Industrial Policy (hereinafter Studies the “Reviewer”) was “CJ engaged reviewa the of to undertake Report”CSV (hereinafter hereby submits “Report”) the and followingthe comments accordingly. RESPONSIBILITY AND PURPOSE CJ Corporation is responsible for all internal CSV target setting processes, performance management, data collection, report compositionand that are examined a part as of inits claimsthis wellreview as all included as data and Report. purpose The of this review is to examine whether significant Report any the errors to contains or and bias, processes forexamine identifying underlying company’s the recommendations to issuesCSV key provide for concern of improvement. UNDERTAKEN SCOPE OF REVIEW AND TASKS ReviewerThe examined Report the a process through detailed below: ------REVIEW SUBJECT TO MATTERS Report the a current status to provide ReviewerThe found Corporation’sof CJ core CSV capacity-linked account reason to no found for and future, plans the activities and significantbelieve any errors in the or were bias included Report. Pursuant to our review findings, forth we put the following comments: BEST 2.0 EM5 - EM12 EM19 - EM27 EM2 EM30 - CO1, CO2 CO5 CO5 CO5 CS3 CO9 CS4 CS6, CS9 CS10 CS15 CS12 PAGE 121 121 22~27 83, 89, 107, 113 22~27 71, 77, 83, 89, 95, 101, 107, 113, 119, 121 121 20, 21, 71, 77, 83, 89, 95, 101, 107, 113, 119 100, 106 30~33, 68, 71, 74, 77, 80, 83, 88 89, 92, 94, 99~101, 107, 113, 117, 119 20, 21 20, 21, 68, 71, 74, 80, 83, 88, 94, 100, 106 20, 21 20, 21 20, 21 22~27, 69, 73, 76, 112 71, 80, 86, 99, 112, 113, 119 64, 119 22~27 20, 21 SECTION CSR Index CSR Index Safety Management CSV Management of Affiliates Safety Management CSV Management of Affiliates, CSR Index CSR Index Management,Ethical CSV Management of Affiliates CSV Management of Affiliates Responsibility,Social CSV Management of Affiliates ManagementEthical Management,Ethical CSV Management of Affiliates ManagementEthical ManagementEthical ManagementEthical Safety Management, CSV Management of Affiliates CSV Management of Affiliates CSV Management of Affiliates Safety Management CSV Management of Affiliates ■ Fully reported▣ Partially reported reported □ Not N.A. ◇ ISO 26000 6.4.3 6.4.4 6.4.6 6.4.6 / 6.8.8 6.4.6 / 6.8.8 6.4.7 6.2.3 / 6.3.7 / 6.3.10 / 6.4.3 6.3.5 6.3.6 / 6.3.7 / 6.3.10 / 6.4.3 6.3.9 / 6.5.1- 6.5.2 / 6.5.3 / 6.8 6.6.1-6.6.2 / 6.6.3 6.6.1-6.6.2 / 6.6.3 6.6.1-6.6.2 / 6.6.3 6.6.1-6.6.2 / 6.6.5 / 6.6.7 4.6 6.7.1-6.7.2 / 6.7.4 / 6.7.5 / 6.8.8 6.7.1-6.7.2 / 6.7.6 - 6.7.1-6.7.2 / 6.7.7 4.6 / 6.7.1-6.7.2 / 6.7.6 126 DESCRIPTION Total number and rate employee of new employee and hires number turnover and Total age by group, gender, region. and retentionReturn torates work and after leave, parental by gender. Percentage of total workforce represented in formal joint management–worker health and safety committees safety health programs and advise occupational on that help monitor and rates of injury of injury, diseases, absenteeism, totaland occupational Type lost and and days, of work-relatednumber fatalities, by gender by region and orWorkers high with risk high of diseases incidence related to their occupation Average of training hours per year per by employee employee category. by gender, and Composition of employees breakdown bodies per and employee of governance category to gender, age group, minorityaccording group membership, otherof diversity. indicators and Rights Hours of Employee Human on PoliciesTotal Training or Aspects Procedures Concerning Percentage Rights the of Employeesof Human to that are Relevant Operations, Including Trained of discrimination taken of incidents number corrective actions Total and Percentageoperations of with implemented community local engagement, impact assessments, development programs.and for risks analyzed total of business units number relatedPercentage and to corruption. Percentage of employees trained in organization’s anti-corruption procedures. policies and of corruption.Actions in taken response to incidents of legal number for anticompetitive actions Total practices behavior, monopoly anti-trust, and their outcomes. and Monetary value for of significant non- sanctions total of non-monetary number fines and regulations withcompliance laws and servicePercentage categories of significant and safety health impacts for product and which are assessed for improvement Results of surveys measuring customer satisfaction or disputed products Sale of banned of substantiated number complaints losses of customerTotal regarding breaches and of privacy customer data Monetary value of significant fines regulations with for concerning laws and non-compliance services and use of products provisionthe and G4-SO3 G4-SO4 G4-SO5 G4-SO7 G4-SO8 G4-PR1 G4-PR5 G4-PR6 G4-PR8 G4-PR9 G4-HR3 G4-SO1 G4-LA1 G4-LA3 G4-LA5 G4-LA6 G4-LA7 G4-LA9 G4-LA12 G4-HR2 PRODUCT RESPONSIBILITY HUMAN RIGHTS LABOR PRACTICES AND DECENT WORK PRACTICES AND DECENT LABOR

SOCIETY ② ① Anti-Competitive Behavior Compliance Customer Safety Health and and Product Service Labelling Marketing Communications Customer Privacy Compliance Corruption Employment Occupational Safety Health and and Training Education Diversity and Opportunity Equal Investment Procurement and Practices Non-discrimination CommunitiesLocal SPECIFIC DISCLOUSRES CATEGORY ④ ③

2. SOCIETY GLOBAL GUIDELINE GUIDELINE GLOBAL EFFORTS TO SPREAD CSV AND CSV AWARDS RECORD

CJ strives to communicate with domestic and overseas stakeholders on CSV management philosophy and activities. Our CSV management activities are recognized by the academia and the media both at home and abroad for the differentiated approach to CSV. In particular, recognized for the performance of the CSV project for rural development in Vietnam, CJ was selected as a “Noteworthy Innovative Company to Change the World 2016,” the only Asian company, by Fortune Magazine.

EFFORTS TO SPREAD CSV (2015 - 2016) CSV AWARDS

Category Date Event Content of Presentation Date Awarded by Award Presentation Oct. 13, 2016 Korea-Germany Forum Corporate Global Responsibility: Global Responsibility, Dec. 6, The Institute CSV Porter Prize in Excellent Process “The CJ Case” 2016 for Industrial Division (three consecutive years), Oct. 11, 2016 UNGC Youth CSR Conference Talk with the CEO (importance of CSR) Policy Studies inducted into the Hall of Fame Jun. 29, 2016 Global Saemaeul Forum CJ-KOICA Saemaeul CSV Project In Rural Vietnam Nov. 14, Ministry of Presidential Citation as a Loved Jun. 18, 2016 Korea Association of International Development Cultural ODA Cases through Private-Public Cooperation 2016 Trade, Industry Company in Global CSR Division and Cooperation (Education on film creation targeting the youth in Indonesia) and Energy (CJ Group’s Vietnamese headquarters) Jun. 15, 2016 CSR in Asia Forum Global CSR of a Korean Company, “The CJ Case” Aug, 25, Fortune Top seven of Noteworthy Innovative May 11, 2016 Session Discussion, FSG Shared Value SDGs as Corporate Action Agenda 2016 Magazine Companies to Change the World Leadership Summit Dec. 8, Vietnamese Medal of Friendship by Vietnam’s Head Feb. 15-19, 2016 ADG Inclusive Business Forum CJ-KOICA Saemaeul CSV Project In Rural Vietnam 2015 Government of State Jan. 27, 2016 Sparking Forum Global CSR/CSV of a Korean Company, “The CJ Case” Dec. 2, The Institute CSV Porter Prize in Excellent Process Dec. 3, 2015 Huawei Sustainability Salon CJ’s COMMITMENT Towards Sustainable Growth; 2015 for Industrial Division (two consecutive years) Creating Shared Value Policy Studies Nov. 10, 2015 Asian Forum CJ’s COMMITMENT Towards Sustainable Growth; Jul. 23, The Korea Grand Prize for Win-win Growth, Creating Shared Value 2015 Economic Daily 2015 Corporate Social Responsibility 2016 CJ GROUP CSV REPORT Oct. 27, 2015 Seoul ODA Forum CJ-KOICA Saemaeul CSV Project In Rural Vietnam Awards Oct. 16, 2015 George Washington University Entrepreneurship CJ’s COMMITMENT Towards Sustainable Growth; Jun. 30, Association Grand Prize from Win-win Growth More detailed information regarding the reported content and the report’s Conference, ashington D.C. Creating Shared Value 2015 of Korean Head Commissioner, the 9th National PDF version are available on CJ Group’s official website. Jul. 13, 2015 National Assembly CSR Forum (U.K., ermany) Global CSR of a Korean Company, “The CJ Case” Journalists Sustainability Management Awards May 14, 2015 Korea CSR International Conference 2015, CJ Group’s Global ONLYONE CSV Management “Global CSR of Korean Companies” Apr. 8, 2015 The Institute for Industrial Policy Studies CSV CJ-KOICA Saemaeul CSV Project In Rural Vietnam Published by CJ Group CSV Team Forum Contact Info. CJ Group CSV Team, 26, Pildong-ro, Jung-gu, Seoul, Korea Jan. 27, 2015 CSR Asia Tokyo CJ’s COMMITMENT Towards Sustainable Growth; Tel. 82-2-726-8114 Creating Shared Value www.cj.net Case Apr. 27, 2016 FSG Website CJ Logistics Senior Parcel Delivery Service publication Winter 2015 SSIR Fighting Extreme Poverty in Vietnam: A Case of K-CSV (Korean Creating Shared Value) International Oct. 18, 2016 2016 Sustainable Development with Saemaeul CSV Success Case for Rural Development in Vietnam event P.R. Movement Apr. 18, 2015 The Global Poverty Project, Global Citizen 2015 CJ-KOICA Saemaeul CSV Project In Rural Vietnam Earth Day This report is printed with soy ink on eco-friendly paper.

128 CJ GROUP CJ Group CSV Team, 26, Pildong-ro, Jung-gu, Seoul, Korea Tel. 82-2-726-8114 www.cj.net