Holding Companies Circular shareholdings to be fully untied

Spinoffs/mergers with six subsidiaries to unwind circular shareholdings On January 2 nd , disclosed that its board had decided to acquire Lotte IT Overweight (Maintain) Tech and the investment units spun off from five of its subsidiaries, i.e., Lotte GRS, Daehong, Lotte Logistics, Lotte International , and Korea Fuji Film. The acquisition, if completed, would fully unwind the remaining eight circular shareholdings and three Industry Report cross holdings created during the group’s holding company conversion , without January 3, 2018 incurring additional costs. Moreover, the expansion of treasury shares (18.8% ‰ 37.3%) following the spinoffs/mergers would help Lotte Holdings to maintain its control over subsidiaries.

Mirae Asset Daewoo Co., Ltd. In light of the affiliated parties’ high equity stakes in the seven aforementioned Lotte Group companies (Lotte Holdings: 62.7%; Lotte GRS: 100%; Daehong: 100%; Lotte [Analyst ] Logistics: 95%; Lotte International: 100%; Korea Fuji Film: 96.6%; Lotte IT Tech: 100%),

Dae -ro Jeong we expect the spinoffs/mergers among the group companies to be approved at their +822 -3774 -1634 respective upcoming shareholders’ meetings (all slated for February 27th ). [email protected] *Other details regarding the spinoffs/mergers: Su Yeon Lee +822 -3774 -7162 1) New share issuance for Lotte Holdings: 39,933,434 (Lotte GRS: 5,315,537 shares; Lotte [email protected] International: 5,511,782 shares; Lotte Logistics: 3,181,124 shares; Korea Fuji Film: 9,348,280 shares; Daehong: 6,347,943 shares; Lotte IT Tech: 10,228,768 shares)

2) On December 28th 2017, Lotte GRS, Daehong, Lotte International , and Korea Fuji Film completed their sales of stakes in and Lotte Insurance (per-share price of W32,551 and W2,900, respectively) to Hotel Lotte and Lotte Hotel Busan 3) Exercise of appraisal rights: February 27 th – March 19 th 2018, spinoffs/merger registration: April 2nd 2018, listing of new shares: April 13th 2018

Lotte Holdings’ move to complete holding company structure: What comes next 1) Meeting subsidiary ownership requirement: Purchase of additional stakes for subsidiary inclusion, disposal of stakes in non-subsidiary affiliates (within two years)

The aforementioned spinoffs/mergers should allow Lotte Holdings to acquire additional stakes of 12.7% and 3.3%, respectively, in Lotte Shopping and Lotte Confectionary. Meanwhile, under the Monopoly Regulation and Fair Trade Act (MRFTA) , Lotte Holdings must own at least 20% of its listed subsidiaries and 40% of its unlisted subsidiaries. Hence, Lotte Holdings needs to acquire, at the very least, an additional 8.5% and 0.7%, respectively, in Lotte Confectionary and . For this purpose, we believe the holding company will opt for tender offer/equity swap/rights offering (new share distribution), as such an approach would not require any additional capital, and would also be beneficial to the majority shareholder from a capital gains tax perspective.

2) Disposal of stakes in financial firms (within two years)

Under the MRFTA (Article 8-2), Lotte Holdings must sell its stakes in financial affiliates (total of 10, including and Lotte Capital) and non-affili ate financial companies (including BNK Financial Group) within two years. We think Lotte Holdings could decide to keep some financial affiliates, such as Lotte Card, within the group structure through various means (rather than selling its stakes to outsid ers), given their potential for synergy effects.

More specifically, Lotte Holdings could either: 1) unload its shares in financial affiliates to Hotel Lotte, Lotte Property & Development, or other affiliates sitting outside of the holding company structure; or 2) split itself into a financial unit and non-financial unit, to comply with the ban on the ownership of financial companies by non-financial holding companies under the MRFTA.

January 3, 2018 Holding Companies

Table 1. Merger schedule Merger agreement 01/02/2018 Book closure 02/02/2018 Start 02/05/2018 Book closure End 02/09/2018 Notice of shareholder intent to Start 02/12/2018 exercise appraisal rights End 02/26/2018 Shareholders’ meeting 02/27/2018 Start 02/27/2018 Exercise of appraisal rights End 03/19/2018 Effective date of merger 04/01/2018 Merger registration 04/02/2018 New share allotment 04/12/2018 Listing of new shares 04/13/2018 Source: DART, Mirae Asset Daewoo Research

Table 2. Merger/spin-off ratios (shares, W) Daehong Lotte Lotte GRS Lotte Logistics Korea Fujifilm Lotte Holdings Communications International Lotte IT Tech investment unit investment unit investment unit investment unit investment unit A) # of stocks before spin-off 73,683,000 481,024 40,000 1,429,202 895,489 140,830 8,552,350 B) Spin-off ratio - 0.4757998 0.8953695 0.5426354 0.7693531 0.8512071 - C) # of stocks after spin-off 73,683,000 228,871 35,815 775,536 688,947 119,875 8,552,350 D) Base price 64,188 N/A N/A N/A N/A N/A N/A E) Intrinsic value N/A 1,490,764 11,376,890 263,288 513,522 5,005,577 76,770 - Asset value 64,295 999,537 8,849,896 245,483 453,450 3,990,794 61,614 - Earnings power value N/A 1,818,249 13,061,553 275,159 553,570 5,682,098 86,874 F) Share price for merger 64,188 1,490,764 11,376,890 263,288 513,522 5,005,577 76,770 G) Merger ratio 1 23.2250264 177.2436888 4.1018423 8.0002977 77.9832468 1.1960185 H. Merger/spin-off ratio (B*G) 1 11.0504629 158.6985930 2.2258048 6.1550538 66.3798934 1.1960185 Source: DART, Mirae Asset Daewoo Research

Table 3. Major shareholders for seven Lotte Group companies (shares, %) Daehong Lotte Lotte Holdings Lotte GRS Lotte Logistics Fujifilm Korea Lotte IT Tech Shareholder Communications International # of shares % # of shares % # of shares % # of shares % # of shares % # of shares % # of shares % Shin Dong-bin 7,746,897 10.5 0 0.0 0 0.0 0 0.0 71,753 8.0 13,790 9.8 583,212 6.8 Shin Dong -joo 171,673 0.2 0 0.0 0 0.0 0 0.0 71,894 8.0 12,360 8.8 341,480 4.0 Shin Kyeok -ho 2,176,830 3.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 893,320 10.4 Shin Young -ja 1,195,007 1.6 22 0.0 2,496 6.2 0 0.0 11,938 1.3 4,950 3.5 300,000 3.5 Shin Yu -mi 42,254 0.1 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Lotte Foundation 2,913,988 4.0 0 0.0 8,400 21.0 0 0.0 0 0.0 0 0.0 80,190 0.9 Lotte Samdong Welfare 54,807 0.1 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Foundation Lotte Foundation for Arts 0 0.0 0 0.0 0 0.0 0 0.0 3,428 0.4 0 0.0 58,268 0.7 Hotel Lotte 4,808,717 6.5 90,301 18.8 6,504 16.3 126,361 8.8 310,169 34.6 11,270 8.0 248,850 2.9 Lotte Aluminum 4,726,242 6.4 0 0.0 0 0.0 0 0.0 55,858 6.2 3,650 2.6 0 0.0 LOTTE CO.,LTD 2,613,965 3.5 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Lotte Hotel Busan 389,590 0.5 54,300 11.3 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Lotte Chemical 23,864 0.0 0 0.0 0 0.0 66,308 4.6 0 0.0 0 0.0 0 0.0 L2 Investment Company 106,151 0.1 0 0.0 0 0.0 648,000 45.3 0 0.0 0 0.0 0 0.0 L12 Investment Company 0 0.0 74,540 15.5 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Total 26,969,985 36.6 219,163 45.6 17,400 43.5 840,669 58.8 525,040 58.6 46,020 32.7 2,505,320 29.3 Lotte Holdings 13,854,113 18.8 261,861 54.4 17,600 44.0 270,244 18.9 247,915 27.7 7,000 5.0 655,810 7.7 Lotte GRS 0 0.0 0 0.0 5,000 12.5 247,369 17.3 0 0.0 2,975 2.1 2,953,500 34.5 Daehong Communications 817,585 1.1 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 2,437,720 28.5 Lotte Logistics 0 0.0 0 0.0 0 0.0 0 0.0 122,534 13.7 0 0.0 0 0.0 Lotte International 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 80,000 56.8 0 0.0 Fujifilm Korea 2,832,097 3.8 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Lotte IT Tech 1,734,654 2.4 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 Total outstanding shares 73,683,000 100.0 481,024 100.0 40,000 100.0 1,429,202 100.0 895,489 100.0 140,830 100.0 8,552,350 100.0 Source: DART, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 2 January 3, 2018 Holding Companies

Table 4. Major shareholders for seven Lotte Group companies before and after merger/spin-off (shares, %) )

Pre-merger Post-merger Daehong Lotte GRS Lotte Communicatio Lotte Logistics Fujifilm Korea Lotte Holdings investment International Lotte IT Tech ns investment investment unit investment unit Shareholders unit investment unit Lotte Holdings Note unit (Surviving (To be merged 1) (To be merged 2) (To be merged 3) (To be merged 4) (To be merged 5) (To be merged 6) company ) # of shares % # of shares % # of shares % # of shares % # of shares % # of shares % # of shares % # of shares % Shin Dong -bin 7,746,897 10.5 0 0.0 0 0.0 0 0.0 55,203 8.0 11,738 9.8 583,212 6.8 9,801,451 8.6 Shin Dong -joo 171,673 0.2 0 0.0 0 0.0 0 0.0 55,312 8.0 10,521 8.8 341,480 4.0 1,843,056 1.6 Controlling Shin Kyeok-ho 2,176,830 3.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 893,320 10.4 3,245,257 2.9 family: Shin Young -ja 1,195,007 1.6 10 0.0 2,235 6.2 0 0.0 9,185 1.3 4,213 3.5 300,000 3.5 2,352,226 2.1 15.2% Shin Yu -mi 42,254 0.1 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 42,254 0.0 Lotte Foundation 2,913,988 4.0 0 0.0 7,521 21.0 0 0.0 0 0.0 0 0.0 80,190 0.9 4,342,964 3.8

Lotte Samdong Welfare 54,807 0.1 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 54,807 0.0

Foundation Lotte Foundation 0 0.0 0 0.0 0 0.0 0 0.0 2,637 0.4 0 0.0 58,268 0.7 90,789 0.1 for Arts Hotel Lotte 4,808,717 6.5 42,965 18.8 5,823 16.3 68,568 8.8 238,629 34.6 9,593 8.0 248,850 2.9 10,074,852 8.9

Lotte Aluminum 4,726,242 6.4 0 0.0 0 0.0 0 0.0 42,975 6.2 3,107 2.6 0 0.0 5,312,337 4.7

LOTTE CO.,LTD 2,613,965 3.5 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 2,613,965 2.3

Lotte Hotel Busan 389,590 0.5 25,836 11.3 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 989,630 0.9

Lotte Chemical 23,864 0.0 0 0.0 0 0.0 35,981 4.6 0 0.0 0 0.0 0 0.0 171,452 0.2

L2 Investment 106,151 0.1 0 0.0 0 0.0 351,628 45.3 0 0.0 0 0.0 0 0.0 1,548,472 1.4 Company L12 Investment 0 0.0 35,466 15.5 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 823,701 0.7 Company Total 26,969,985 36.6 104,278 45.6 15,579 43.5 456,177 58.8 403,941 58.6 39,173 32.7 2,505,320 29.3 43,307,219 38.1

Lotte Holdings 13,854,113 18.8 124,593 54.4 15,759 44.0 146,644 18.9 190,734 27.7 5,958 5.0 655,810 7.7 22,917,354 20.2 Lotte GRS 0 0.0 0 0.0 4,477 12.5 134,231 17.3 0 0.0 2,532 2.1 2,953,500 34.5 5,074,008 4.5 investment unit Daehong Communications 817,585 1.1 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 2,437,720 28.5 3,733,143 3.3 investment unit Treasury Lotte Logistics shares: 0 0.0 0 0.0 0 0.0 0 0.0 94,272 13.7 0 0.0 0 0.0 754,203 0.7 investment unit 37.3% Lotte International 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 68,097 56.8 0 0.0 5,310,391 4.7 investment unit Fujifilm Korea 2,832,097 3.8 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 2,832,097 2.5 investment unit Lotte IT Tech 1,734,654 2.4 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 1,734,654 1.5 Total outstanding 100. 100. 100. 100. 73,683,000 100.0 228,871 35,815 775,536 100.0 688,947 119,875 100.0 8,552,350 113,616,434 100.0 shares 0 0 0 0 Source: DART, Mirae Asset Daewoo Research

Table 5. Appraisal right exercise price (W) Daehong Lotte Holdings Lotte GRS Lotte International Lotte Logistics Fujifilm Korea Lotte IT Tech Communications Common 63,635 1,159,905 507,234 312,527 4,453,955 14,410,552 76,770 Preferred 74,132 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 3 January 3, 2018 Holding Companies

Figure 1. Ownership structure of domestic operations of Lotte Group (post-merger)

Source: DART, Mirae Asset Daewoo Research

Table 6. Lotte Group’s holding company’s fair valuation (Wbn, W, %) Items Value Notes Operating value (1) 1,159

In-house businesses 0 Pure holding company Brand royalties 1,082 Royalty rate of 15bps; applied 15x after cost reduction Real estate investment 77

Investment value (2) 7,309 Listed subsidiaries 2,596 Based on market value Unlisted subsidiaries 4,714 Based on fair value and book value Total asset value (3)=(1)+(2) 8,468

Net debt (4) 531 Based on expected non-consolidated financial statements Net asset value (5)=(3)-(4) 7,937 No. of shares outstanding (‘000 shares) 71,261 Based on common stocks NAV per share 111,383 Theoretical fair price 72,399 35% discount to the NAV per share Base price 65,500 Based on Jan 2 nd closing price Upside 10.5

Source: DART, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 4 January 3, 2018 Holding Companies

Table 7. Lotte Group’s holding company’s value of investment securities (no. of shares, Wbn) No. of total No. of holding Book 100% Appraised shares company Stake Remarks value value value outstanding shares Listed subsidiary 2,596

Lotte Confectionery 4,209,102 484,054 11.5% - 619 71 Lotte Shopping 28,122,047 10,839,005 38.5% - 5,638 2,173 Lotte Chilsung 799,346 154,209 19.3% - 1,069 206 Market Lotte value 77,531 6,489 8.4% - 44 4 Chilsung(Preferred) Lotte Food 1,131,870 250,162 22.1% - 640 141 Unlisted subsidiary 4,714

Lotte GRS 252,153 137,268 54.4% - 108 59 Daehong 4,185 2,365 56.5% - 322 182 Communications Lotte Logistics 653,666 236,738 36.2% - 338 122 Lotte International 206,542 85,443 41.4% - 111 46 Fair value Fujifilm Korea 20,955 13,388 63.9% - 69 44 Lotte Data 10,000,000 10,000,000 100.0% 183 244 244 Communications Korea Seven 36,227,634 29,497,655 81.4% 272 664 540 Lotte Station Building 3,600,000 1,603,200 44.5% 158 355 158 Lotte Asset 40,302,235 24,372,719 60.5% 147 243 147 Development Lotte E&C 32,177,410 2,759,808 8.6% 182 2,126 182 Lotte Global Logistics 23,653,311 2,215,622 9.4% 118 1,262 118 Lotte.com 6,127,081 3,911,096 63.8% 40 63 40 Book value 6,020,000 5,719,000 95.0% 28 29 28 Lotte Incheon 20,000,000 3,000,000 15.0% 15 100 15 Development Lotte Incheon Town 13,000,000 700,001 5.4% 4 65 4 Lotte Accelerator 3,000,000 500,000 16.7% 3 15 3

Lotte Card 74,740,061 70,088,853 93.8% 1,000 1,703 1,597 Disposal Lotte Capital 33,297,512 8,536,058 25.6% 113 1,084 278 value and Lotte Members 2,462,242 2,311,510 93.9% 36 53 50 fair value Other 856 856 Source: DART, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 5 January 3, 2018 Holding Companies

APPENDIX 1

Important Disclosures & Disclaimers

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

Equity Ratings Distribution & Investment Banking Services Buy Trading Buy Hold Sell Equity Ratings Distribution 74.52% 12.50% 12.98% 0.00% Investment Banking Services 70.73% 19.51% 9.76% 0.00% * Based on recommendations in the last 12-months (as of September 30, 2017)

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

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

Disclaimers This report was prepared by Mirae Asset Daewoo, a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Korean language. In case of an English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws or regulations or subject Mirae Asset Daewoo or any of its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof. This report is for general information purposes only and it is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The report does not constitute investment advice to any person and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account the particular investment objectives, financial situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising out of the use hereof. Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions, views and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset Daewoo, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Mirae Asset Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. No part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Mirae Asset Daewoo.

Distribution

Mirae Asset Daewoo Research 6 January 3, 2018 Holding Companies

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

Mirae Asset Daewoo Research 7 January 3, 2018 Holding Companies

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Mirae Asset Daewoo Research 8