LOTTE Construction Management Division Contents Introduction 03 Introduction 04 Message Establishing genuine trust with 05 2018 Vision customers through LOTTE’s principles 06 Strong Point The LOTTE CM Division is a construction management specialist, the first Korean construction company to introduce CM business 07 Business Fields beginning with Jamsil’s LOTTE World in 1985. The LOTTE CM Division has successfully implemented a range of Lotte Group 08 CM Business affiliate projects, accumulating a wealth of know-how, and achieving New Build Business recognition both internally and externally by providing professional Renewal Business Complex Business services focused on work based experience and specialized service in Global Business sales and complex facilities. 14 Construction Supervision Business 15 Project Portfolio 16 Commercial Facilities 20 Hotels / Cultural Facilities 22 High Rises / Complex / Resort Facilities 24 Office Building / Logistics / Factory Facilities 26 Global Project 03 LOTTE CONSTRUCTION MANAGEMENT MESSAGE 2018 VISION We are on track to becoming a leading Mission CM leading company through differentiated Earning care and respect in helping customers attain their service and work based know-how dreams through creative thinking and best service The LOTTE CM Division was the first construction company in Korea to introduce the Vision CM business. We are overall full service construction management company carrying out validation procedures, design, business supervision, and CM. Experts in each field implement all tasks in an efficient, responsible manner, from design to construction, design management, working expense management, process control, and post The 1st CM, Make your dream come true with the best service management, achieving goals through efficient business cooperation. Since the founding of the LOTTE CM Division in 1985, the company has successfully established sales facilities such as department stores, supermarkets, cinemas, logistic Goal centers, manufacturing plants, resorts, golf courses and research institutes, based on the ample experience and professionalism of LOTTE Group construction. We also Positioning among operate an independent research and development system for differentiated 50 billion won Business Advanced the TOP 3 CM in sales diversification construction construction management services such as building type diversification and task firms in Korea management progression. Based on these outcomes, the high-rise construction business in Jamsil, metropolitan Core values Seoul, and Busan is currently in full operation according to established plans, and business endeavors are being expanded overseas, to areas including China, Vietnam, and Indonesia. Customer Originality Technology Value Satisfaction Creation The LOTTE CM Division possesses the premiere competencies in the CM field, based on construction management know-how, and promises to do its utmost to achieve its goal of being a leading CM company in both Korea, and the around the world. Thank you. Business policies Head director Jeon Byung Il Site Management Talent Management Communications and Harmony 04 05 STRONG POINT LOTTE CM maintains specialized know-how The LOTTE CM Division has accumulated practical business know-how including minimizing Business Fields risk and building integrated management systems through its completion of a range of building and renewal construction projects for LOTTE Group affiliates. The company offers differentiated professional services through extensive experience and integrated business capacity for high-rise complexes such as the Jamsil Lotte World Tower, Busan Lotte Town, and LOTTE CM offers integrated solutions the Vietnam Lotte Center Hanoi, all currently in progress. across a range of construction needs for maximum customer benefit Project execution status The LOTTE CM Division is principally divided into its CM and Total: 495 cases construction supervision businesses. The CM business is an overall Contracted construction: 223 cases construction management service encompassing all areas from Overseas projects: 43 cases design to construction, effectively reducing work expenses and construction times. Department Supermarkets: Other: Other services: stores: 61 cases 109 cases 53 cases 229 cases The LOTTE CM Division helps finish projects in a quicker, better China: 19 cases manner by providing CM service with responsibility in a range of Indonesia: 14 cases business fields, including new construction, renewal, complexes, Vietnam: 10 cases and overseas projects. The Construction supervision business works towards customer satisfaction through distinct, customer-focused, systematic service. Customer value maximized through LOTTE’s trust The LOTTE CM Division possesses strong management capability and business competence in all areas of construction management, developed during the process of implementing diverse projects including department stores, supermarkets, and cinemas for the Lotte Shopping LOTTE Group affiliate. The excellent LOTTE Group infrastructure and networks are committed to maximizing owner value in Korea and around the world. Core LOTTE Group affiliate businesses ~2002 ~ 2004 ~ 2006 ~ 2008 ~ 2010 ~ 2012 Lotte Lotte Station Lotte Food Lotte Data Lotte Lotte Chilsung Department Building Communication Confectionery Beverage Store Lotte Capital TGI Lotte Giants Lotte Asset Lotte Lotte Mart Lotte Development Chemical Boulangerie Lotte Skyhill C.C Lotte Hotel Lotte Home Angel-in-us Seven Eleven Shopping Lotte Cinema Lotte Liquor Lotte Academy LotteRIA Lotte Duty Free Lotte Super 06 07 LOTTE CONSTRUCTION MANAGEMENT CM BUSINESS LOTTE CM provides responsible business agent service on Applied CM business effects behalf of the owner, from design to construction The LOTTE CM Division enables reductions in time and pricing via thorough pre-analysis, guaranteeing construction quality through responsible management in the owner’s stead. The LOTTE CM Division redevelops disorganized aspects of ordering and provides an Risks are also minimized during the project progress and disputes are mediated smoothly. integrated business agent service from experts in every field, from design to construction. This creates tangible reductions in construction expenses and construction time, and an 01 Working expenses reduced through design VE and construction capability review. equivalent increase in quality. 02 Construction time is effectively reduced through Fast-Tracking. 03 Faulty construction is prevented and quality is improved via thorough phased business management. 04 Smooth communications between business participants lead to the achievement of the owner’s goals. 05 Claims are minimized and efficient management is implemented for disputes. Business provided per step in CM business The LOTTE CM Division provides an effective construction management service throughout the construction project process, reducing expenses and time, and leading to improved ▶ quality with the completion of an optimized facility, maximizing asset value. Construction expense reductions · Design step: Work expense reductions through design VE · Construction step: Construction expense reductions through field injected expense analysis and management TOTAL SOLUTION SYSTEM Budget Reduction Design step Reduction Design VE Design quality Construction expense analysis Cost Time Quality Reduced construction Shortened Increased quality expenses construction duration ▶Construction time reduction · Design step: Construction time reduction through optimized design review, Fast-Tracking through timely design and order · Construction step: Construction time reduction via thorough work supervision 5 Pre-CM Post construction Order Construction 4 Post- 3 Design Construction construction 2 step Contract step Shortened 1 Procurement After CM Post construction Design construction step duration Pre-design step Order Construction step · Support and Design · Handle and report manage transition Fast-Track · Support administrative work · Establish upkeep · Estimate and construction · Manage design policies and plans business decisions · Support designer review working changes · Draft final report expenses ▶ decisions · Support estimated · Manage construction Quality improvement price decisions · Set schedule · Review drawings quality, safety, and · Design step: Design quality improvement through establishment of quality standards / guaranteed plans management and specifications environment · Manage contract · Construction step: Construction quality improvement through design-construction interface management standards · Support licensing buying schedule · Review and manage and pre-analysis of defect types · Review business · Design VE · Establish contract progress schedule plans promotion plan details Pre-CM · Review · Manage disputes · Analyze business construction time · Write contract Design quality Construction quality status guidelines and claims Quality improvement · Manage completion / trial run Post-CM Design quality Construction quality 08 09 LOTTE CONSTRUCTION MANAGEMENT NEW BUILD RENEWAL BUSINESS BUSINESS LOTTE CM completes projects with specialized know-how LOTTE CM takes the post-construction situation into account, optimized for sales facilities placing priority on the safety and benefits to the customer The LOTTE CM Division is in responsible for design planning review for new businesses, The LOTTE CM Division provides a range of services suitable for complexes and particular production cost reduction, construction expense