CJ E&M CORPORATION AND SUBSIDIARIES Condensed Consolidated Interim Financial Statements June 30, 2015 and 2014 (Unaudited) (With Independent Auditors’ Review Report Thereon) Contents Page Independent Auditors’ Review Report 1 Condensed Consolidated Interim Statements of Financial Position 3 Condensed Consolidated Interim Statements of Comprehensive Income (Loss) 5 Condensed Consolidated Interim Statements of Changes in Equity 7 Condensed Consolidated Interim Statements of Cash Flows 9 Notes to the Condensed Consolidated Interim Financial Statements 11 Independent Auditors’ Review Report Based on a report originally issued in Korean The Board of Directors and Shareholders CJ E&M Corporation: Reviewed financial statements We have reviewed the accompanying condensed consolidated interim financial statements of CJ E&M Corporation and its subsidiaries (the “Group”), which comprise the condensed consolidated interim statement of financial position as of June 30, 2015, the condensed consolidated interim statements of comprehensive income (loss) for the three- and six-month periods ended June 30, 2015 and 2014, the condensed consolidated interim statements of changes in equity and cash flows for the six-month periods ended June 30, 2015 and 2014 and notes to the interim financial statement. Management’s responsibility Management is responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No. 1034, ‘Interim Financial Reporting’, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ review responsibility Our responsibility is to issue a report on these condensed consolidated interim financial statements based on our reviews. We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial statement consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of Korea and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements referred to above are not prepared, in all material respects, in accordance with K-IFRS No. 1034, ‘Interim Financial Reporting’. Other matters The consolidated statement of financial position of the Group as of December 31, 2014, and the related consolidated statements of comprehensive income (loss), changes in equity and cash flows for the year then ended, which are not accompanying this report, were audited by us and our report thereon, dated March 5, 2015, expressed an unqualified opinion. The accompanying consolidated statement of financial position of the Group as of December 31, 2014, presented for comparative purposes, is not different from that audited by us in all material respects. Seoul, Korea August 12, 2015 This report is effective as of August 12, 2015, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any. CJ E&M Corporation and Subsidiaries Condensed Consolidated Interim Statements of Financial Position As of June 30, 2015 and December 31, 2014 (Unaudited) (In won) Note June 30, 2015 December 31, 2014 Assets Cash and cash equivalents 4,6, 28 W 38,698,935,735 33,525,990,630 Accounts and notes receivable - trade 8, 28, 32 325,113,966,660 352,453,730,663 Advance payments 12 141,518,615,325 138,528,894,268 Other current financial assets 11, 28, 32 464,672,261,893 500,522,346,764 Other current assets 15 10,797,311,502 8,833,316,387 Income tax refundables 2,557,959,299 66,375,975 Inventories 7 7,256,395,729 5,243,369,241 Current assets 990,615,446,143 1,039,174,023,928 Available-for-sale financial assets 9,28 74,039,508,810 67,836,584,920 Held-to-maturity investments 28 7,329,395,000 8,529,395,000 Investments in equity method investees 10 468,442,271,165 377,297,630,661 Property and equipment 13 78,990,268,575 88,464,908,331 Intangible assets 14 696,255,307,502 694,725,260,394 Other non-current financial assets 11,28,32 23,890,719,819 21,367,208,661 Other non-current assets 15 24,879,147,912 19,470,503,910 Deferred tax assets 31 39,257,744,301 40,520,008,394 Non-current assets 1,413,084,363,084 1,318,211,500,271 Total assets W 2,403,699,809,227 2,357,385,524,199 See accompanying notes to the condensed consolidated interim financial statements. 3 CJ E&M Corporation and Subsidiaries Condensed Consolidated Interim Statements of Financial Position, Continued As of June 30, 2015 and December 31, 2014 (Unaudited) (In won) Note June 30, 2015 December 31, 2014 Liabilities Accounts and notes payable – trade 28,32 W 78,905,554,864 67,690,656,180 Accounts and notes payable – other 28 131,311,000,330 147,014,765,667 Income tax payable 368,516,677 42,041,973,269 Short-term borrowings 4,16,24,28 47,043,895,000 45,470,400,301 Current portion of debentures 4,16,24,28 99,997,720,291 99,924,350,466 Current portion of long-term borrowings 4,16,24,28 1,249,990,000 2,166,703,344 Other current financial liabilities 4,17,28 96,569,378,858 138,021,900,603 Other current liabilities 18,20 44,892,391,354 37,677,454,965 Current provisions 19 781,436,111 795,738,234 Current liabilities 501,119,883,485 580,803,943,029 Debentures 4,16,24,28 149,806,714,563 149,737,504,299 Long-term borrowings 4,16,24,28 101,666,600,000 102,333,240,000 Other non-current financial liabilities 4,17,28 1,141,164,305 1,101,392,587 Other non-current liabilities 18,20 2,234,323,770 2,049,094,528 Liabilities for defined benefit obligations 20 13,598,311,241 8,868,495,171 Non-current provisions 19 649,076,133 967,139,598 Deferred tax liabilities 31 22,901,167,960 5,821,307,023 Non-current liabilities 291,997,357,972 270,878,173,206 Total liabilities 793,117,241,457 851,682,116,235 Stockholders’ equity Share capital 1,21 193,660,445,000 193,660,445,000 Share premium 969,766,994,891 969,766,994,891 Retained earnings 23 420,782,267,103 316,305,165,021 Other capital 21,22 28,967,319,842 29,639,156,509 Equity attributable to owners of the Parent Company 1,613,177,026,836 1,509,371,761,421 Non-controlling interests (2,594,459,066) (3,668,353,457) Total equity 1,610,582,567,770 1,505,703,407,964 Total equity and liabilities W 2,403,699,809,227 2,357,385,524,199 See accompanying notes to the condensed consolidated interim financial statements. 4 CJ E&M Corporation and Subsidiaries Condensed Consolidated Interim Statements of Comprehensive Income (Loss) For the three- and six-month periods ended June 30, 2015 and 2014 (Unaudited) June 30, 2015 June 30, 2014 Three- Six- Three- Six- month month month month period period period period (In won) Note ended ended ended ended Continuing operations Revenue 5,32 W 299,194,591,740 592,332,041,758 283,503,813,056 548,636,272,716 Cost of sales 29,32 (218,770,904,210) (445,991,577,555) (222,949,556,234) (433,384,332,922) Gross profit 80,423,687,530 146,340,464,203 60,554,256,822 115,251,939,794 Selling, general and administrative expenses 26,29,32 (62,600,046,557) (119,338,500,721) (69,079,729,442) (127,081,390,174) Operating profit (loss) 5 17,823,640,973 27,001,963,482 (8,525,472,620) (11,829,450,380) Finance income 27 4,277,826,350 8,800,510,142 2,331,497,220 5,023,687,241 Finance costs 27 (4,725,025,982) (10,822,078,685) (5,850,268,087) (10,849,424,699) Share of profit of equity method investees 10 14,150,221,915 116,154,907,436 1,882,221,143 2,824,515,982 Share of loss of equity method investees 10 - (2,497,140,013) (294,604,025) (2,585,661,158) Other non-operating income 30 845,021,642 2,856,837,481 188,049,437 435,757,160 Other non-operating expenses 30 (11,312,940,573) (15,344,403,607) (4,225,507,555) (9,545,640,651) Profit (loss) before income tax 21,058,744,325 126,150,596,236 (14,494,084,487) (26,526,216,505) Income tax (expense) benefit 31 (8,496,227,840) (23,226,437,485) 811,538,430 2,020,193,496 Profit (loss) from continuing operations 12,562,516,485 102,924,158,751 (13,682,546,057) (24,506,023,009) Discontinued operations 33 Profit from discontinued operations, net of tax - - 2,465,815,209 13,084,180,997 Profit (loss) for the period W 12,562,516,485 102,924,158,751 (11,216,730,848) (11,421,842,012) Profit (loss) attributable to: Owners of the Parent Company 13,279,296,224 104,477,102,082 (12,223,361,714) (19,266,358,907) Non-controlling interests (716,779,739) (1,552,943,331) 1,006,630,866 7,844,516,895 W 12,562,516,485 102,924,158,751 (11,216,730,848) (11,421,842,012) See accompanying notes to the condensed consolidated interim financial statements.