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 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 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 , and is currently in full operation according to established plans, and business endeavors are being expanded overseas, to areas including , , and .

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 department Building Communication Confectionery Beverage store TGI Lotte Asset Lotte Lotte Development Chemical Boulangerie Lotte Skyhill C.C Lotte hotel Lotte Home Angel-in-us Seven Eleven Shopping Lotte Liquor Lotte Academy 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 reduction and process control through VE, renewal businesses. Experts are assigned to implement systematic business planning and with extensive experience as a mediator between business participants to ensure management while building value designed to improve after construction completion, construction goes smoothly. The company has also minimized confusion and complications staying one step ahead via thorough preliminary review. in the business promotion process, while successfully completing sales facility projects through active owner support.

Renewal business application effects

Core business contents Key review points Core business contents Application effect

· Reduce maintenance and · Improve performance · Analyze risk and establish Facilities Key review points Core business contents administration fees in deteriorated building s business plans · Analyze customer demand · Secure facilities appropriate for · Separate customer / employee circulation · Support licensing · Extensions for increased land intended use efficiency · Pre-diagnosis and analyze validity · Establish a rational module plan · Review floor plans and specifications · Invest in optimum resources Department (underground parking / show windows) · Improve work space · Analyze VE / LCC stores · Write specifications and prepare orders environment · Improve facility function and · Apply floor height accounting for · Manage process / business performance Duty free · Select construction business and manage equipment / products · Improve exterior building image expenses contract · Increase profit and asset value Outlets · Establish a lighting plan according to · Improve prior space functions · Analyze project influence factors · Manage established work · Increase space efficiency Cinemas product / store illumination · Guide construction technology and Supermarkets · Devise countermeasures to deal with manage process disasters such as evacuations, safety, and fire prevention · Calculate construction expenses Renewal application cases

Lotte Department Store Guri branch renewal Sum of sales facility projects performance status (Including new buildings, additions and improvements) Before After 246 cases 250

200

150 137 cases 102 cases 100 79 cases 50 cases 50

~2002 2005 2007 2009 2 011

01 -Centum City 02 Lotte Premium Outlet-Paju 03 Lotte mart-Guro 01 Lotte Department Store-Jamsil 02 Lotte Department Store-Busan 03 Lotte mart-Geumcheon

10 11 Lotte Construction Management

Complex Global Business Business LOTTE CM provides customized service specialized for LOTTE CM is engaged in opening overseas markets via our complex facilities, from planning to post-management stable business foundation in Korea

The LOTTE CM Division provides optimized solutions for high-complexity business complex The LOTTE CM Division has met overseas approval for its competency in adhering to management requiring premium overall technical skills compared to standard structures. The reasonable construction duration and reducing work expenses based on thorough design company systematically and rationally reviews core requirements throughout the project and contract management. Since entry into Vietnam in 2008, the LOTTE CM Division has customized to all complex facilities and complete the project without error via thorough engaged in a range of projects in China, East Asia, and elsewhere, enlarging its field of advance preparation. activity through a diversification of its business base and by pioneering in new markets.

Business role Key overseas business performance

Manage- Design management Order management Construction management 2009 · Lotte mart: Qingdao Chengyang branch, Qingdao Lao Shan branch, Beijing Gongyixiqiao branch ment area · Lotte Cinema: Shenyang Songshan cinema 2010 · Maintain consistency with initial · Define work scope · Establish field distribution · Lotte mart: Shenyang Yuhong branch, Tianjin Wuyuan branch, Weihai Weihai branch business plan through clear contract temporary facility and resourcing · Lotte mart: Jilin Chuanying branch, Changchun Luyuan branch, Zhouzhou ZhouZhou branch, 2011 Dongyingshi Dongcheng branch, Shenyang Hepingqu branch, · Apply Fast-Tracking technique management plans Sanxia Lianqiao branch, Dang Zunhua branch · Role allocation via budget · Support smooth · Establish distribution plan for · Lotte Department Store: Tianjin Cultural center branch, Weihai Weihai branch (in progress), and · work duration management communications number and location of tower cranes Business Chengdu Chengdu branch (in progress) between contract agents · Select construction method for 2012 role · Secure drawings and specifications · Complex: China Shenyang Lotte World (in progress) through design coordination · Inject work at the proper design element regularity and · Lotte mart: Qingdao Shandonglu branch times after contracting possible work tempo · Review and consider based on core design techniques · Provide experts and materials at the proper times, along with systematic support China

2008 · Lotte mart: South Saigon branch Vietnam Complex business application effects 2009 · Lotte International: Lotte International warehouse 2010 · Lotte mart: Phu Tho branch · Review structural - construction · Manage Fast-Tracking and · Apply design and construction 2011 · Lotte cinema: Hanoi Gyeongnam Landmark branch Indonesia aiming design process cycling technology to secure planned · Complex: Lotte Center Hanoi (in progress) · Verify design step plans and · Close follow-through between structural performance 2012 · Lotte Cinema: Nha Trang cinema, Ho Chi Minh Cong Hoa cinema (in progress) · Lotte mart: Dong Nai branch (in progress), Da Nang branch (in progress) consider construction capability processes and reduction of · Apply design and construction · Manage positive feedback and vertical construction duration in technology corresponding preconditions for design, order, the process quickly and precisely to a range of variable situations and construction steps 2008 · Lotte mart: Gandaria branch, Ratu Plaza branch, Bandung Festival branch · Lotte mart: Panakkukang branch, Kelapa Gading branch, Bintaro Jaya branch, 2008 Serang branch, Kuningan City branch, Fatmawati Branch

Pre-Construction · Lotte Department Store: Ciputra branch (in progress) Reduce construction Secure highly precise design Introduce management 2008 · Duty free: Airport duty free duration and construction technology techniques · Lotte mart: Jataka branch, Cirebon branch (in progress), Taman Suria (in progress)

01 Jamsil Lotte World Tower (in progress) 02 Gimpo Skypark 03 Lotte mall-Suwon Station (in progress) 01 China Shenyang Lotte World (in progress) 02 Vietnam Lotte Center Hanoi (in progress) 03 Indonesia Lotte mart-Bintaro Jaya

12 13

Construction Supervision Business LOTTE CM implements a responsible construction supervision service for successful project completion Project Portfolio The LOTTE CM Division provides a new concept in responsible construction supervision, differing from standard construction supervision methods through overall confirmation / supervision at the construction site. The company has increased construction efficiency by integrating and managing all steps, from the beginning to transition, based on extensive LOTTE CM confirms its specialized know-how and competence in the CM business. competitiveness based on its results in a range of fields

The LOTTE CM Division has had numerous achievements, with sales Construction supervision business application effects facilities like department stores and supermarkets, business facilities like factories and distribution centers, and complexes and high rise Review construction, Minimize construction maintenance, Apply thorough safety design alterations facilities requiring a high level of technical skill. The company also and administrative expenses management techniques and and factors influencing through VE application environmental management provides customized solutions taking into account the characteristics construction expenses and review and customer requirements for each project, ensuring excellent results in Korea and abroad.

Successfully accomplish project

Services provided per construction supervision step

4 3 Transition 2 Completion step 1 Construction step Beginning step step

· Facility Transition · Appoint · Field Document accomplishment and Transition · Manage core quality completion inspectors · Maintenance, · Main points of · Review and manage · Accomplishment and administration, and quality test exams design plans completion inspection defect repairs · Confirm construction · Review and report · Preparatory completion · Offer defect repair plans commencement inspection opinions notification statement · Approve · Confirm and review construction details · Investigate field completion drawing conditions · Detection work · Meet with construction · Technical review related people opinions

14 15 Commercial Facilities Commercial Facilities Lotte Construction Management Department Store Mart

Lotte Department Store-Sogong Lotte Department Store-Mia Lotte mart-Jamsil Lotte mart-Guro

Building area : 207,050m2 Floor : B7F~37F Building area : 72,621m2 Floor : B6F~10F Building area : 19,338m2 Floor : B3F~6F Building area : 57,481m2 Floor : B1F~6F

Lotte Department Store-Cheongyangni Lotte Department Store-Gwangbok Lotte mart-Buam Lotte mart-Chuncheon

Building area : 51,120m2 Floor : B2F~9F Building area : 114,215m2 Floor : B8F~10F Building area : 50,425m2 Floor : B1F~8F Building area : 40,568m2 Floor : B1F~4F

16 17 Commercial Facilities Commercial Facilities Lotte Construction Management Outlet Renewal

Lotte Premium Outlet-Paju Lotte Outlet-Gwangju Suwan Lotte Department Store-Jamsil Lotte Department Store-Busan

Building area : 148,817m2 Floor : B3F~4F Building area : 34,228m2 Floor : B1F~8F Building area : 66,873m2 Floor : B1F~9F Building area : 82,671m2 Floor : B2F~7F

Lotte Premium Outlet-Gimhae Lotte Premium Outlet-Buyeo (in progress) Lotte mart-Gyeyang Lotte mart-Geumcheon

Building area : 104,668m2 Floor : B1F~4F Building area : 33,742m2 Floor : B1F~2F Building area : 20,208m2 Floor : B3F~6F Building area : 22,495m2 Floor : B1F~6F

18 19 Hotels / Cultural Facilities Lotte Construction Management

Lotte World-Jamsil Charlotte Theater Lotte Cinema-Yeongdeungpo

Building area : 148,761m2 Floor : B3F~32F Building area : 11,147m2 Floor : B2F~2F Building area : 20,350m2 Floor : 7F~8F

Lotte World-Busan Lotte City Hotel-Jeju (in progress) Lotte Cinema-Lafesta Lotte Duty Free Store-COEX

Building area : 167,683m2 Floor : B5F~43F Building area : 43,148m2 Floor : B4F~22F Building area : 75,342m2 Floor : B1F~5F Building area : 4,731m2 Floor : B1F~B2F

20 21 High Rises / Complex / Resort Facilities Lotte Construction Management

Jamsil Lotte World Tower (in progress) Busan Lotte Town (in progress) Gimpo Skypark Lotte Buyeo Resort / Buyeo CC

Building area : 276,788m2 Floor : B5F~9F Building area : 950,640m2 Floor : B1F~2F

Lotte Jeju Resort Skyhill Gimhae CC

Building area : 580,934m2 Floor : B8F~107F Building area : 580,934m2 Floor : B8F~107F Building area : 19,574m2 Floor : B2F~2F Building area : 1,028,000m2

22 23 Office Building / Logistics / Factory Facilities Lotte Construction Management

Lotte Confectionery Office Building Lotte Data Communications Gwangmyeong Logistics Center Osan Logistics Center Office Building

Building area : 33,305m2 Floor : B3F~15F Building area : 54,195m2 Floor : B1F~6F Building area : 85,498m2 Floor : B1F~3F

Lotte Canon Office Building Lotte Canon Anshan Factory (in progress) Lotte Boulangerie Factory

Building area : 45,418m2 Floor : B3F~19F Building area : 12,274m2 Floor : B6F~17F Building area : 46,013m2 Floor : B2F~1F Building area : 8,585m2 Floor : 3F

24 25 Lotte Construction Management Global Project

China Shenyang Lotte World (in progress) Vietnam Lotte Center Hanoi (in progress) Vietnam Lotte mart -South Saigon

Building area : 33,395m2 Floor : 1F~3F

Vietnam Lotte International warehouse

Building area : 1,494,600m2 Floor : B4F~63F Building area : 14,833m2 Floor : 3F

China Lotte Department Store China Lotte mart-Lianqiao Vietnam Lotte Cinema -Nha Trang -Tianjin Cultural center Indonesia Lotte mart-Bintaro Jaya

Building area : 70,347m2 Floor : B1F~5F Building area : 30,710m2 Floor : 1F~3F Building area : 1,663m2 Floor : 1F Building area : 247,078m2 Floor : B5F~65F Building area : 58,757m2 Floor : B1F~4F

26 27 12, 2ga, Yangpyeong-dong, Yeongdeungpo-gu, Seoul 150-100, Korea / Tel : 02-2169-0216