SG/KL NDR: CJ CheilJedang CJ CheilJedang IR Mar 2019 This financial information in this document is consolidated earnings results based on K-IFRS. This document is provided for the convenience of investors only, before the external audit on our 2018 financial results is completed. The audit outcomes may cause some parts of this document to change. Contents I. Company Overview Pg.3 II. Key highlights Pg. 6 III. Food Pg. 7 IV. BIO Pg. 17 V. Feed & Livestock Pg. 24 VI. Appendix Pg. 28 2 I. Company Overview Shareholders’ Stake Revenue Mix (2018) W10.2tn Others 19.9% Feed & CJ Treasury Stocks Livestock Processed Food Corp 21% 2.4% 44.6% 34% National Pension Bio Service 27% 12.5% Foodstuff 18% Foreign Investor 19.8% Jayhyun Lee & related parties * As of 31 Dec, 2018 0.9% * Excluding CJ Healthcare, CJ Logistics Snapshot (Dec 2018) OP Mix (2018) Outstanding Shares 15,054,186 shares W605bn Feed & Livestock Market Cap KRW 4,975bn 9% Bio 32% Food 3M Daily Trading Value KRW12.1bn 59% Foreign Investor Stake 19.8% * As of 31 Dec, 2018 * Excluding CJ Healthcare, CJ Logistics 3 I. Company Overview CJ Group Holding Structure CJ Corp. 47.1% 44.6% 55.0% 96.0% 40.1% 39.0% CJCJ CJ Freshway CJ OliveNetworks CJ Foodville CJ ENM CJ CGV ( 357,298 /2.4%) 40.2% 46.5% 71.3% 53.9% CJ Logistics CJ Seafood Studio Dragon CJ Hello 4 I. Company Overview History Globalization Founded CheilJedang Corp. (the first 1953 Overseas sales account for 44% of total manufacturing business of Samsung Group) revenue of W10.2tn (2018) Commenced Animal Feed business 1970s Launched Dasida, No.1 seasoning brand Overseas Domestic Commenced Pharmaceutical business 44% 1980s Constructed first lysine plant in Indonesia 56% 1993 Separated from Samsung Group Began overseas Animal Feed business in 1990s SE Asia * Excluding CJ Logistics, CJ Healthcare 2000~ Spun off non-core divisions Overseas Sales Portion by Division 2006 while strengthening core biz by acquisitions 97% Spun off from CJ Corp 2007 74% 2011 Acquired CJ Logistics Separation of managements and executives in 20% 2017 Food and Bio biz / Acquired Selecta 4% Processed Food Foodstuff Bio Feed & 2018 Disposal of CJ Healthcare Livestock * Overseas revenue excludes exports from Korea 5 II. Key highlights Sales breakdown: Food 52%, Bio 48% (Excl. CJ Logistics, CJ Healthcare) Diversified business portfolio with stable margins Revenue Profitability Processed Food Foodstuff Bio (Unit: W 100mn) 29.3% Feed & Livestock Healthcare 28.8% 28.3% 102,753 26.7% 26.8% 2013~2018 CAGR: 9% 98,852 1% 25.4% GPM 5% 89,413 21% 6% 81,522 21% 6% 72,100 73,658 23% 6% 6% 22% 26% 21% 22% 22% 20% 21% 20% 20% 18% 20% 9.2% 21% 22% 7.2% 7.0% NPM 24% 24% 5.9% 5.6% 4.8% OPM 33% 3.4% 31% 32% 2.2% 2.5% 6.0% 28% 29% 1.2% 28% 3.9% 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 * Changes in accounting reflected from 2017, refer to P.29 6 III. Food Division 1) Overview Resilient top line led by Process food’s double-digit growth Stable margin thanks to greater contribution from Processed Food Annual Sales Trend Operating Profit and OPM (Unit: W bn) (Unit: W bn) 8% 8% 8% Foodstuff Processed Food 7% 7% 6% 2013~2018 CAGR 363 Processed Food: 11% 349 352 358 Foodstuff: 1% 322 1,834 1,961 1,870 222 1,782 1,749 1,742 3,438 3,129 2,742 2,368 2,019 2,098 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 * Changes in accounting reflected from 2017, refer to P.29 7 III. Food Division: Processed Food 2) Product Portfolio Diversified product categories from condiments to Ready Meals Solid growth driven from both domestic and overseas business Diversified Portfolio Revenue Breakdown 13% Others (Unit: W bn) 7% Paste Overseas 675 5yr CAGR 10% Seasoning/Sauce 27% 509 Microwavable 10% Rice 391 255 10% Fresh/Sea Food 207 203 Domestic 13% Frozen 3,438 5yr CAGR Food 3,129 12% 2,742 2,368 2,084 Processed 1,932 18% Meat 20% Global (US, China, Vietnam, Russia, etc) 2013 2014 2015 2016 2017 2018 * Changes in accounting reflected from 2017, refer to P.29 * % of Processed Food revenue (2018) 8 III. Food Division: Processed Food 3) Domestic Business Dominant No.1 player in Korean food industry from strong brand awareness and exquisite cuisines Market Presence Key Product M/S Trend 80% Seasoning 78% “Revenue From Processed Food” 74% (Unit: W tn) 56% 3.1 Microwavable 65% Rice 2.4 52% 2.2 2.2 2.2 51% 2.0 1.5 Red Pepper Paste47% 45% Soybean Paste 46% 37% Canned Ham 45% 25% Dumpling 22% Cooked Frozen 18% Kimchi 10% 2013 2014 2015 2016 2017 2018 * Linkaztec * As of 2017 9 III. Food Division: Processed Food 4) Ready Meal Market leader in ‘Ready Meals’ seeking for the tastiest, the healthiest and the most convenient choices [ Single Person Household Trend in Korea] 2500 30% 33% 35% 27% 30% Micro- 2000 24% wavable 20% 25% 1500 16% 20% Rice 15% 1000 10% 500 607 720 5% 319 417 518 0 226 0% Side 2000 2005 2010 2015 2020 2030 Dish Total household(10K) Single person household % of Single person household [ Ready Meal Growth (two-year average ‘17~’18) ] Soup/ 316% Stew 112% 43% 41% Etc Cupbahn Frozen meal Side dish Soup/Stew [ Ready Meal Market Size ] - Broadly defined market: W 3.1 tn, 18.8% (‘15~’18 CAGR) - CJCJ defined revenue: W 352 bn, 122% (‘15~’18 CAGR) 10 III. Food Division: Processed Food 5) CJ Blossom Campus Established new factory, CJ Blossom Campus to address growing demand Location 330,000sqm in Songdu Industrial complex, Jincheon, Chungcheongbuk-do CAPA : W1.2tr (As of 2025) / Investment W902bn Capacity Products Notes 85,700 tons by 2019 Hetbahn, Cooked Frozen Ph.1 Commence production in Nov 2018 112,000 tons by 2025 Processed Meat 55,200 tons by 2019 Ph.2 Ready meal, Kimchi, Frozen Pizza Commence production in 2H19 94,900 tons by 2025 11 III. Food Division: Processed Food 5) CJ Blossom Campus “World-Class Automated Factory” to reinforce productivity and improve cost efficiency Expected effects . Launch market oriented products through integrated module system - Modularized equipment allow production shifts among different categories . Minimize operation risk with utmost productivity through centralized digital control system - Digitalize and manage every process and information on real time basis . Enhance cost efficiency through intensive automation, savings in utilities and decrease in defective rate Automation rate1) +25~35% Utility Expense -30% OEE +10% (Overall Equipment Effectiveness) [ Hetbahn ] Existing factory/OEM New factory 100% 95% 72% 82% Automation rate Energy OEE 1) Automation rate : number of automated(no labors) manufacturing phases / total number of manufacturing phases 2) OEE : Availability(time spent on operation) X Performance(speed of work done) X Quality(percentage of good products) 12 III. Food Division: Processed Food 6) Overseas Business Overseas revenue grew 33% YoY at W675bn in 2018 exceeding 20% of Processed Food’s sales W 365bn W 191bn W 92bn (54% of Global revenue) (28% of Global revenue) (14% of Global revenue) US China Vietnam ( Wrap food, Ready Meal, Noddle, Sauce) ( Wrap Food, Seasoning/sauce, HMR ) ( Wrap food, Kimchi, fishery products) - Addressing demand growth of local - Streamlined both products and - Exceeded full capacity due to robust market channels in terms of profitability and demand growth efficiency - Settling a global exporting ground by - Aiming to penetrate into mainstream employing geological advantages - Strengthening frozen food categories channels through M&A (raw material, human resource and online channel exposure availiability) 13 III. Food Division: Processed Food 6) Overseas Business 20 manufacturing facilities in US, China, Vietnam, Russia, etc Global revenue accounts for 20% of total Processed Food revenue Products: Pelmeni (Russian dumping) Russia Products: Beef Roll, Sauce (1) Germany Products: Chinese pickle, Wrap food, (1) Seasoning, Tofu, etc. China US (6) (6) Japan (1) Products: Wrap Food, Noodle, Sauce, Products: Kimchi, etc. Paste, Seaweed, etc. Vietnam (4) Products: Wrap Food, Fishball, Kimchi, etc. Indonesia (1) Products: Premix ’13 Sales W291bn ‘18 Sales W675bn Russia Europe 1% 1% Vietnam Others 3% 14% China China US 11% China US 28% 28% 54% Subsidiaries 87% Joint Venture * Overseas revenue excludes exports from Korea 14 III. Food Division: Foodstuff 7) Product Portfolio and Market Share Managing market volatility by product diversification and cost leadership Assuring perpetual cash inflow with minimal capital expenditure Foodstuff Product Portfolio Key Products’ Market Share 2% Trading 4% Global (Vietnam, China) 84% 8% Starch 72% 43% 36% Cooking Oil Sugar Flour Cooking Oil * Linkaztec, as of 2018, B2C only, Based on revenue 46% 22% Flour 40% 27% 14% 27% Sugar Sugar Flour Cooking oil Starch * CJCJ, as of 2017, B2C+B2B, Based on sales volume * % of Foodstuff revenue (2018) 15 III. Food Division 8) Schwan’s M&A Acquired 70% stake in Schwan's valued at $2.18bn (EV) CJCJ to inject $1.18bn excluding $500mn from acquisition financing Revenue Breakdown (2017) Acquisition Rationale of Schwan’s Revenue by Revenue by Business Product Brand Power Others 7% . [B2C]: Frozen pizza No.2/Pie No.1/Asian appetizer No. 1 Others Home 23% Consumer . [B2B]: Pizza No.1/ Appetizer No.1 Pizza Servic e Brands Appetizers 48% 31% 41% 11% Food Diverse Distribution Channels Servic Pies e 18% 21% . [B2C]: Nationwide distribution through major US retailers 30K orders in key channels (Walmart, Kroger, etc.) vs. 3K orders for CJ America . [B2B] Diversified B2B channels, based on long-term contracts Nationwide Infrastructure .