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BIO&PHARMA

BIO&PHARMA - CJ · market, expanding global ... Food Ingredient CJ CHEILJEDANG BIO CJ HEALTHCARE. 4 5 CO 2 ... CJ’s Bio&Pharma business. As a leading bioresearch institute,

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BIO&PHARMA

1

CJ CheilJedang Bio has become the world’s leading bio

company thanks to its competitiveness and investment in

R&D. CJ CheilJedang Bio commits to being a global green bio

company by bolstering its product competitiveness, especially

for ‘Nucleotide’ and ‘Lysine,’ which are leaders in the global

market, expanding global production facilities and securing

new engines for global growth.

CJ Healthcare leads the domestic ETC, API and Health&Beauty

markets. With the establishment of the Osong Plant which

complies with the cGMP standard to go global, CJ Healthcare

has laid the foundation to be a leading global pharmaceutical

company.

1

17

CJ CHEILJEDANG BIO CJ HEALTHCARE

32

1964 Acquired Wonhyung Industry. Started producing and

selling ‘MIPOONG’(MSG)

1968 Started operating Gimpo Plant(to produce MSG)

1977 Became the world’s 2nd to successfully ferment and

produce ‘Nucleotide’

Developed IMP, GMP

Launched ‘AIMEE(MSG +0.5% of nucleotide)’

1978 Established a plant for organic fertilizer

1988 Established PT. CHEIL SAMSUNG INDONESIA

(PT-CSI) in Indonesia

1991 Established Pasuruan plant(to produce ‘Lysine,’ MSG)

1996 1st extension of Lysine line at Pasuruan plant

1997 Established Jombang plant(to produce nucleotide)

1999 Established BIO business unit

2000 Changed to BIO BU

2000 Launched ‘L-Threonine’

2005 Completed Laocheng plant in China to produce lysine

2006 Completed Laocheng plant in China to

produce nucleotide

2007 Completed Piracicaba plant in Brazil

2010 Launched ‘L-Tryptophan’

2012 Completed Shenyang plant in China to produce

‘Lysine,’ ‘Threonine’

2012 Started producing ‘MSG’ at Jombang plant

2013 Started producing the world’s first ‘L-Methionine’

2013 Launched edible amino acid, ‘L-Arginine’

2013 Launched health-related functional amino acids

2013 Extended business areas to non-edible biomass and

bio-based chemicals(bio-plastic)

HISTORY

CJ CheilJedang Bio Business

CJ CheilJedang Center, 330, Dongho-ro, Jung-gu, Seoul / www.cjbio.net

CheilJedang Bio business started with the production of MSG in the 1960s and laid the foundation for success

when it launched the world’s second nucleotide in the 1970s. CJ CheilJedang Bio entered the amino acid for

animal feed market around the 1980s and 1990s, which was the starting point for its entry in the global market.

Having secured a number of production outposts around the world in the 2000s, CJ CheilJedang Bio is going

global at full throttle.

BUSINESS AREA

| CJ CheilJedang Bio Business is a leading manufacturer in the global feed amino acid market.

Feed amino acids are essential nutrients for animal growth. CJ CheilJedang Bio Business currently ‘Lysine,’

‘Threonine,’ ‘Tryptophan’ and ‘Valine,’ with the largest global market shares for ‘Lysine’ and ‘L-Tryptophan.’ In

addition, it has developed the environmentally friendly technology required to produce ‘Methionine’ and is set to

mass-produce it.

| CJ CheilJedang Bio Business became the world’s second developer of ‘nucleotide’ in 1997

after Japan and started expanding its ‘MSG’ and ‘nucleotide’ business. MSG and nucleotide are food enhancers

to enhance the flavors and tastes of processed foods, which have seen a growth in the global market along with

the growth of the processed food industry. CJ CheilJedang Bio Business is a leader in the global nucleotide market

and is expanding its product portfolio to health-related functional amino acids, including ‘Arginine,’ ‘Glutamine,’

and ‘BCAA.’ It commits to providing customers with health and joy through quality products.

| CJ CheilJedang Bio Business is preparing bio-based chemicals(raw materials for bio

plastic and bio-based chemicals) and the non-edible biomass business based on the innovative convergence

of chemical process and catalyst technology with industrial strain development and fermentation technology.

The environmentally-friendly bio-based chemicals are used as substitutes for chemical ingredients made from

petroleum-based resources and thus prevent natural resources from becoming depleted while also reducing

greenhouse gas emissions. In addition, non-edible biomass is an effective substitute for materials from plant-based

resources, and thus acts to contribute to making a sustainable and harmonious environment.

BUSINESS OVERVIEW FINANCIAL HIGHLIGHTS

Sales by year (Unit: billion won)

32

CJ CheilJedang Bio,

a Global Leader in Advanced Bio Products

CJ CheilJedang Bio business is a global leader in the feed amino acid and fermented nucleotide market for food.

Starting with the production of MSG in 1964, CJ CheilJedang Bio produces ‘Lysine,’ ‘Threonine,’ ‘Tryptophan,’

‘Nucleotide’ and ‘MSG’ at seven overseas plants based on its micro-organism fermentation technology that has been

developed over the past 50 years. CJ CheilJedang Bio reached sales of 1 trillion won in 2010, meaning it played a

pivotal role in the health of CJ’s global business. CJ CheilJedang Bio has established the competitive edge it needs

to compete globally through expanding its business scale. It currently strives to enter the environmentally friendly bio

business by producing the world’s first ‘L-form Methionine,’ functional amino acids, non-edible biomass and bio-plastic.

* 2017 Sales Forecast

4,000

1,500

1,200

956

706

2017 *

2012

2011

2010

2009

23

35

23

42

24

51

2010 2011 2012

NO.1

NO.1

CJ Tide(nucleotide) L-Lysine

Global Market Share (Unit: %)

Animal Nutrition

Food Ingredient

Future business

CJ CHEILJEDANG BIO CJ HEALTHCARE

4 5

CO2BIOMASS

BIO PRODUCTSCJ BIO

SUSTAINABILITY

Environmentally Friendly policy,

ONLYONE Technology

The fermentation-based method to produce

feed amino acids is environmentally friendly

because it controls the glucometabolism

of microorganisms, which enables it to use

less energy and produce no pollutants. CJ

CheilJedang Bio Business has taken a further

step in support of the environment. It has

made a large investment in the environment

at overseas plants to reduce wastewater and

water usage, and eventually to establish a zero-

discharge system to preserve water resources.

Moreover, it has developed a high-yield strain

to reduce raw and subsidiary materials and to

decrease overall greenhouse gas emissions. It

works to protect the Earth and the ecosystem

with its bio business ONLYONE technology.

Animal Nutrition

A Leader in the Global Feed Amino acid Market thanks to Unparalleled Technology

CJ CheilJedang is the number one global bio company in the green

bio market and a leader in the feed amino acid market. It leverages its

advanced fermentation and refining technology to produce feed amino

acids including ‘L-Lysine,’ ‘L-Threonine,’ ‘L-Tryptophan,’ ‘L-Methionine,’

‘L-Valine’ and arginine. Feed amino acids are essential to animal growth

and supply the nutritional balance to animal growth when they are used in

feed for pigs, chickens, horses and cows. The feed amino acid market is

growing by a rapid 8-10 percent a year as the demand for meat increases

the world over.

CJ CheilJedang Bio business has the largest market share in the global

‘L-Lysine’ and ‘L-Tryptophan’ markets through the establishment of a

plant in Shenyang, China in 2012 and in Iowa, U.S.A. in the second half of

2013. Moreover, CJ CheilJedang Bio will become the first bio company

to produce four major feed amino acids based on an environmentally-

friendly technical method, as it starts producing ‘L-Methionine’ from 2014.

Moreover, CJ CheilJedang Bio will extend the product portfolio with the

launch of ‘L-Valine’ and ‘L-Arginine’ and the development of ‘Biotector,’

the world’s first environmentally friendly substitute to antibiotics. It commits

to leading the global market with highly valuable and environmentally

friendly bio products.

The CJ CheilJedang bio business has a vision of “Beyond BIO, Renew the Earth”, which

represents its commitment to do its best to maintain an ecosystem that’s sustainable for all

humans and animals. Its mission and duty is to pass on a sustainable Earth to our children

by laying the foundation for growth and a sustainable ecosystem while protecting resources

and the environment. CJ CheilJedang Bio Business pledges to work hard to leverage its

capabilities towards creating a sustainable future.

(SOCIETY)

Make the Earth healthier with green/white bio products

(CUSTOMER)

Provide the best value with advanced technology

(EMPLOYEE)

Work with passion and joy

MISSION

Beyond the current working process, beyond the current technical boundary,

beyond the current business areas, CJ CheilJedang Bio Business works to

pass on a sustainable and harmonious Earth to our children.

Beyond Bio,Renew theEarth

VISION

CJ HEALTHCARECJ CHEILJEDANG BIO

76

BESTAMINOTM

‘BestAmino’ is a trademark of CJ Feed amino acid products. It represents

the confidence that CJ has in providing the highest levels of quality,

service and value to its customers.

Demand for feed amino acids products continues to enjoy high growth

of 8 -10 percent a year globally. CJ CheilJedang Bio Business leads the

global feed amino acid market with its ‘BestAmino’ products.

CJ’s ‘L-Lysine’ and ‘L-Tryptophan,’ based on CJ’s advanced technology

and cost competitiveness, take the top place in terms of market share.

CJ has launched ‘L-Methionine,’ which accounts for 50 percent of the

feed amino acid market, and ‘L-Threonine,’ which enhances animal

growth based on environmentally friendly bio fermentation method.

CJ has recently developed ‘L-Valine’ after three years of research and

development. The environmentally-friendly ‘L-Valine,’ which helps to

promote animal growth, is enjoying rapid growth of more than 30 percent

a year.

CJ CheilJedang Bio Business has established an exclusive portfolio of

feed mino acid products with its different level of technology and raw

materials. ‘BestAmino’ will continue to grow as a leading brand in the

global feed amino acid market.

Best Products

L-Lysine L-Methionine

‘Lysine’ is a key nutrient related to the production performance

and considered as the first depleted amino acid at pork farms

and the second depleted amino acid at chicken farms. Lysine

should be provided by using with feed. Mixing ‘L-Lysine’ with

feed delivers nutritional balance and the supply of a proper

quantity of amino acids, which prevents excessive protein

intake and reduces ammonia excretions. CJ CheilJedang Bio

Business continues to consolidate its leadership position in the

global ‘lysine’ market with the advanced technology and cost

competitiveness.

‘Methionine’ accounts for 50 percent of the global feed amino

acids for the feed market, 95 percent of which are dominated by

German, Chinese, American, and Japanese products. Due to

technical limitations, Methionine products have ‘DL-form’ from

chemical process with using petroleum-based materials, unlike

other amino acids. However, CJ CheilJedang Bio Business

became the first manufacturer to commercialize successfully

‘L-form Methionine’ with the environmentally-friendly bio

engineering method based on raw sugar and glucose, which

has the same structure as natural methionine and offers higher

stability and usability.

L-ThreonineL-Tryptophan

‘Tryptophan’ is the third most rapidly depleted amino acid in

pigs. Tryptophan boosts the immune system by maintaining

an internal protein balance that induces normal growth, and

promotes antibody creation. As a precursor of serotonin the

neurotransmitter tryptophan reduces animal aggressiveness,

as has been reported in research. CJ CheilJedang Bio’s

‘L-Tryptophan,’ which started being produced in 2010, currently

holds the largest market share in the global market.

‘Threonine’ is the second or third most rapidly depleted

essential amino acid in animals. It promotes sound animal

growth, and is involved in antibody creation that enhances

the performance of the cardiovascular, digestive, central

nervous, and immune systems. ‘L-Threonine’ is produced by a

fermentation process and contributes to promoting the growth

of livestock, with cost reductions for livestock industry, and

enhanced environmental conservation.

L-Valine L-Arginine

‘Valine’ is the fifth most rapidly depleted amino acid in pig

feeds and a part of BCAA(Branched Chain Amino acid), along

with leucine and isoleucine. The shortage of ‘Valine,’ which is

an essential nutrient for pigs and chickens, may cause nerve-

related problems. The use of ‘L-Valine’ or other BCAA with

feed helps the environment by reducing protein and ammonia

excretions.

‘Arginine’ carries nitrogen and is abundant in the body fluid of

the fetus at the early and middle stages of pregnancy. ‘Arginine’

aids protein synthesis, urea circulation and the excretion of

nitrogen produced in the human body, and produces nitrogen

monoxide and polyamine that regulates the contraction and

release of blood vessels. It improves egg production and egg

weight, while maintaining the health of baby pigs and improving

the pregnancy outcome in pigs.

CJ CHEILJEDANG BIO CJ HEALTHCARE

8

Food Ingredient

‘Monosodium glutamate(MSG)’ and ‘nucleotide’ are major flavor

enhancers and food ingredients that have been improved with the

development of the fermentation technology of CJ CheilJedang Bio

Business Unit. As they add a savory taste and enhance the natural flavor

and taste of food, they are often used to increase the taste and flavor of

food products.

‘MSG’ and ‘nucleotide’ naturally exist in foods but the amounts

ordinarily contained are too little to use commercially. Thus, ‘MSG’ and

‘nucleotide’ are produced through a fermentation process which allows

a small amount of them to enhance taste and flavor greatly. ‘MSG’ and

‘nucleotide’ are currently used as core ingredients for all processed foods,

including seasonings, Ramyun, pastes, sauces, snacks, and processed

meat and fish products.

Today, the global demand for ‘MSG’ and ‘nucleotide’ is over 3 million tons

and 4 million tons a year. The global demand for ‘nucleotide’ as a food

enhancer continues to grow, especially in China, Southeast Asia, and

Africa, due to its cost competitiveness and convenience. CJ CheilJedang

Bio Business has the largest market share in the world thanks to its

production competitiveness and its establishment of global supply

facilities. Its market share continues to grow each year. CJ CheilJedang

Bio Business expands the bio business to amino acids products based

on its amino acid fermentation technology. The recent well-being and

health trend is increasing the demand for health-related functional amino

acid products and CJ produces ‘L-Arginine,’ ‘L-Glutamine,’ and ‘BCAA’

to respond to this demand. CJ CheilJedang Bio Business will make

tastier and healthier foods for the global market with safe and healthy

ingredients.

Tastier and Healthier Foods for the Global Market with Safe and Healthy Naturally-Fermented Ingredients

The largest global market share,

CJ Tide (Nucleotide)

CJ CheilJedang Bio Business Unit has had the

largest market share in the global nucleotide

market from 2011. With the establishment of a

production facility in Indonesia and China, and

the global sales network, CJ CheilJedang Bio

Business supplies CJ Tides to the 70 countries

around the world. The market share of CJ

CheilJedang’s nucleotide products will only

grow in the future.

No.12013

51%

9

We make more tastier and

healthier foods for the

global market with safe and

healthy ingredients.

CJ CHEILJEDANG BIO CJ HEALTHCARE

1110

Flavor Enhancer

A flavor enhancer enhances the natural flavor and taste of food. It refers

to the ‘Umami taste(savory taste).’ ‘Monosodium glutamate(MSG)’ and

‘nucleotide’ are the core taste substances that naturally exist. ‘MSG’ is

found in seaweed, mushrooms, beans, meats, and most natural foods.

MSG has been used as a natural food additive in many regions and it is

safe to use. ‘Nucleotide’ are found in beef, mushrooms, and fish but it

is mostly produced through a fermentation process as only a very small

amount is naturally contained in food. Food enhancers have a long and

safe history of use in the food industry, and are expected to continue to

contribute to enhancing taste in a safe and healthy way.

Twenty amino acids are the essence of all living organisms. Amino acids

exist naturally and have a core function in living organisms. Amino acids

have become more widely used in recent years in the healthcare and

personal care industry because they aid body functions and are not toxic

to the skin. The use of amino acids for industrial use has started to grow.

CJ CheilJedang continues to innovate its amino acid products for added

value.

Functional Amino Acid

Best Products

MSG

L-Arginine BCAA valine, leucine, isoleucine

L-Glutamine

CJ Tide

Glutamate is a major substance for the ‘Umami taste(savory

taste),’ the fifth basic taste along with sweet, salty, sour, and

bitter tastes. Glutamate is made through fermentable sugars

from molasses or glucose and this is ‘MSG’(monosodium

glutamate). ‘MSG’ is found in most natural foods and rich in

fermented foods such as soybean paste and cheese. It has

been used in diverse regions around the world. European and

the U.S.A. FDA have stated that the intake of MSG presents no

harm to the human body. The EU Expert Committee on Food

Additives set the limited intake amount of ‘MSG’ at 153mg in

1973 and withdrew the limit in 1987 with the reason that MSG

offers no potential harmful effects to human health. ‘MSG’

has cost competitiveness, which enhances flavor and taste in

smaller amounts, and is widely used in most processed foods.

CJ CheilJedang’s MSG is widely supplied to food manufacturers

around the world.

‘Arginine’ is the only amino acid to produce nitrogen monoxide

that is a neurotransmitter regulating the contraction and release

of blood vessels. It enhances the cardiovascular system,

muscles and vitality. It has been proved effective in the treatment

and recovery of sensitive teeth. With its strong moisture effect,

more skin and hair products use ‘Arginine’ and it offers the

potential for use in healthcare foods and daily care products.

‘Glutamine’ is the most abundant free amino acid found in

the body. It is a source of muscle energy and should be taken

sufficiently to prevent muscle breakdown during intense exercise

or nutritional imbalance. ‘Glutamine’ has a synergy effect with

‘Arginine.’ As the sport nutrition market grows, ‘Glutamine’ is

facing rising demand. It is used as a source of nourishment in

food for patients as it increases muscle and organ repair.

‘BCAA(Branched Chain Amino acid)’ is a Branched Chain

Amino acid, and includes ‘valine,’ ‘leucine,’ and ‘isoleucine,’

which are among the nine essential amino acids for humans.

‘BCAA’ is an essential amino acid in muscle proteins and should

be obtained through food intake as it is not naturally composed

in the body. ‘BCAA’ enhances protein synthesis, muscle repair,

the endurance and the recovery of muscle fatigue, and the use

of ‘valine,’ ‘leucine,’ and ‘isoleucine,’ may increase. ‘BCAA’

is becoming more widely used for sport nutrition along with

‘Glutamine’ as the sport industry grows. ‘BCAA’ is widely used

to treat patients suffering from cirrhosis and hepatic insufficiency

which hinders protein synthesis.

‘CJ Tide(nucleotide)’ is one of the major substances that is

used to create the Umami taste(similar to savory and mouth-

watering taste) along with ‘MSG.’ It is often used to enhance

the taste and flavor of food. The types of ‘nucleotide’ are IMP

and GMP. ‘Nucleotide’ are naturally found in dried fish, beef

and so on, but the amount contained is very little. Thus, the

food industry mass produces nucleotide through fermentation.

‘Nucleotide’ increase the flavor and taste a lot more when

they are used with ‘MSG,’ so they are often used in processed

foods. By using ‘nucleotide’ within 10:1~20:1 depending on a

food product, nucleotide can enhance flavor by up to 10 times.

‘Nucleotide’ enhance the initially recognized tastes. IMP, one

of the nucleotide products, enhances the ability to recognize a

salty taste initially and GMP enhances the ability to recognize

the taste of fat initially. Thus, IMP and GMP are regarded

as a substitute for salt and fat respectively. Nucleotide are

widely used not only as a flavor-enhancer but also for nutrient

substitutes.

CJ CHEILJEDANG BIO CJ HEALTHCARE

12 13

Global Activities

The core factor behind the global success of CJ CheilJedang Bio

Business has been its cost competitiveness. Its cost competitiveness is

the result of three competitive edges: R&D, location, and global business

management. CJ CheilJedang Bio Business commits to bolstering its

market leadership in ‘Lysine,’ ‘Nucleotide’ and ‘Tryptophan,’ which are

currently leading the global market.

CJ CheilJedang Bio Business has been extending its sales network by

reinforcing its global business network to provide customers with better

quality and service. CJ CheilJedang Bio Business will start producing

‘Methionine,’ which accounts for over 50 percent of feed amino acids,

from 2014 when the Malaysian plant is completed, and will assume

global leadership by producing the world’s first ‘L-form Methionine.’

In addition, it will diversify the product portfolio with functional amino

acids such as ‘L-Valine,’ ‘L-Arginine,’ and ‘Glutamine’ to secure a future

growth engine and enter the new business area of non-edible biomass

and bioplastic. It will establish a sustainable growth model by recycling

resources.

CJ CheilJedang Bio Business is leading the global bio industry, rather

than being content to be a leader in the amino acid business. It commits

to being the number one company in the global bio market by bolstering

its market dominance and securing a future growth engine.

For a future as Global No.1 in the Bio Industry

Global Production Facilities of CJ CheilJedang Bio Business

CJ CheilJedang Bio Business is growing as a

global leader in the bio industry by establishing

production facilities in Indonesia, the U.S.A.,

and Brazil.

GLOBAL SCENES

U.S.A.CHINA

KOREA

INDONESIA

MALAYSIA

BRAZIL

Production Plant

R&D Post

Sales Office

U.K. GERMANY

HUNGARY

RUSSIA

FRANCE

NIGERIA

JORDAN

KENYA

SOUTH AFRICA

JAPAN

ARGENTINA

THAILAND

PAKISTAN

INDIA

CHILE

PHILIPPINES

AUSTRALIA

VIETNAMMEXICO

COLOMBIA

PERU

INDONESIA

• First overseas production facility

• Production of feed amino acid

products and nucleotide

1991 Established the Pasuruan plant

1996 Established the Jombang plant

MALAYSIA

• Made a full entry into the

Methionine market

• Penetrated the Chinese and

Asian market

2014 Planned completion of the

Green Bio plant producing

80,000 tons of Methionine a year

CHINA

• Production of lysine, threonine,

and nucleotide

2005 Established the Shandong plant

2012 Established the Shenyang plant

U.S.A.

• Global outpost for lysine production

• Entered the US market at full throttle

2014 Planned completion of the Green

Bio plant producing 100,000

tons of Lysine a year

BRAZIL

• Plays a connecting role

• Easy to supply raw sugar

2007 Complete the Lysine plant

CJ CHEILJEDANG BIO CJ HEALTHCARE

1514

R&D Institute

CJ Research Institute of Biotechnology is Leading Life Sciences

CJ Research Institute of Biotechnology was established in 1984 to support

CJ’s Bio&Pharma business. As a leading bioresearch institute, it aims to

mass-produce ‘amino acids’ and ‘nucleotide’ based on the world’s most

advanced technology to develop high yield microbial strains and biological

fermentation processes. CJ’s major products - ‘CJ Tides,’ ‘L-Lysine,’

and ‘L-Threonine’ – have been selected as ‘World-Class Product’ by the

Korean Ministry of Trade, Industry, and Energy. In particular, the technology

to produce ‘L-Threonine’ by using microgenomics was selected as a ‘Top

10 Korean Innovative Technologies of 2012.’ The CJ Research Institute of

Biotechnology was the first in the world to produce ‘L-Methionine’ using

a process involving the fermentation of microorganisms. It produced

the bacteriophage ‘Biotector,’ which is an environmentally-friendly feed

additive product. The Institute annually applies for over 70 domestic and

international patents and now holds more than 500 patents through its

innovative research.

With the increasing need for technology to handle the soaring price of fuel

and global warming, the CJ Research Institute of Biotechnology conducts

research on the white bio area based on its world-class technology to seek

a resolution to environmental issues and thus lead the future bio industry,

including biochemical to develop bio-based platform chemicals from

sustainable biomass using renewable resources, and on biomass to obtain

fermentable sugar from agricultural products, weeds, and wood waste.

Award Winning Career

2010 Won the ‘Changyeongsil Awards’ for Biotector by KOITA

(Korea Industrial Technology Association)

2010 Selected ‘L-Lysine’ as a ‘World-Class Product’

2007 Selected ‘L-Threonine’ as a ‘World-Class Product’

2002 Selected ‘CJ Tides’ as a ‘World-Class Product’

2002 Selected ‘L-Threonine’ as one of the ‘Top 10 Korean Innovative Technologies of 2012’

Since its establishment in 1984, CJ Research

Institute of Biotechnology has been shaping

the future of the bio industry with its world-

class technology.

534TOTALIntellectual Property Rights

AS OF 2013

Nucleotides

Bio-Based Chemicals

BiomassMicrobial Material

R&DAmino Acids

14

CJ CHEILJEDANG BIO CJ HEALTHCARE

1716

Future Business

BIO-Based Chemicals are environmentally friendly products made of

biological resources. As they are substitutes for chemical products

made from petroleum-based resources, bio-based chemicals reduce

greenhouse gas emissions and thus contribute to the environment.

CJ CheilJedang Bio continues to work to develop products for the

potential white bio market by converging chemical synthesis and catalyst

technology based on the micro-organism handling and process control

technologies that CJ has developed in the amino acid area. In addition,

CJ CheilJedang Bio aims to develop basic materials for high quality

molecular products used in IT, cars, fibers and other products through

the convergence technology of bio-based chemicals.

Biomass is a biological material that changes l ight energy into

biochemical energy through photosynthesis. Biomass is classified into

three categories; the starch type is derived from cornstarch or wheat,

the sugar type is derived from sugarcane and beet, and the fiber type

is derived from wood and rice straw. CJ CheilJedang Bio Business

conducts research on the ways to produce sugar from non-edible

biomass for the fiber type, instead of the edible starch and sugar types.

It commits to saving the edible plants and crops in order to contribute

to the food shortage problem and to save resources by transferring to

the use of biomass-based chemicals from petroleum-based chemical

products.

5.8

2016 (FORECAST)

1.0

2010 2011

1.2

2009

0.25

(Unit: million ton)

CAGR 73%

Global bio-plastic production

BIO-Based Chemicals

Non-Edible Biomass

CJ HEALTHCARE

1918

CJ Healthcare

CJ CheilJedang Center, 330, Dongho-ro, Jung-gu, Seoull / www.cjp.co.kr

BUSINESS AREA

1984 Started the pharmaceutical business.

Established a R&D center

1986 Completed Icheon Plant, launched the hepatitis

vaccine ‘Hepaccin-B’(only using locally developed

technologies)

1990 Completed the Daeso plant

1990 Launched the cephalosporin antibiotics ‘7-ACA’

1992 Completed the construction of a production facility

for intravenous solution

1992 Launched the hangover alleviation beverage ‘CONDITION’

1995 ‘Citopcin injection’ obtained the new technology mark

(KT Mark) and won the Changyeongsil Awards

1995 Developed pseudomonas aeruginosa vaccine,

a world first

1995 Reached over $100 million in export, a first for the

Korean pharmaceutical industry

1998 Launched the renal anemia treatment ‘Epokine’

(first in Korea, third in the world)

1999 ‘Epokine’ won the Changyeongsil Awards

2000 Launched OBU(Oncology Business Unit)

2000 Launched the new antiemetic ‘Campto,’

forging into the anticancer medicines market

2001 Established the CJ CheilJedang Pharma

New Jersey office

2002 Established the hepatitis B vaccine plant and began

exports to Myanmar

2003 Registered ‘Pseudovaccin,’ a pseudomonas

aeruginosa vaccine, and Korea’s 7th new drug.

2004 Acquired Hanil Pharmaceutical

2006 Merged Hanil Pharmaceutical into CJ Pharma

2008 Entered into a joint investment agreement with

‘Neuralstem,’ a U.S. based stem cell research company to

develop a therapeutic drug for the central nervous system

2008 Participated in a cord blood project run by

the Seoul City government(investment in R&D by

Seoul National University)

2010 Completed the construction of oral APIs

manufacturing buildings at Daeso Plant

2010 Completed the construction of Osong Plant,

built to meet global standards

2011 Launched NBU(Nephrology Business Unit) and

entered the kidney dialysis business

2012 ‘CONDITION Hut-gae-su’ became the No.1 drink product

in terms of market share (As of 2012 Neilson Research)

2012 Acquired a fluids manufacturing plant.

(Medi Pharma Plan Co.)

2012 Selected as an ‘Innovative Pharmaceutical Company’

by the Ministry of Health

2014 CJ CheilJedang Pharma established

‘CJ Healthcare’ Corporation

6.1%13.4%

80.5%ETC

H&B (Health&Beauty)

Export

| CJ Healthcare produces ethical drugs(ETC) for cancer, circulatory diseases, diabetes, and gastrointestinal

diseases. CJ Healthcare achieved a Korea first with its development of the renal anemia treatment ‘Epokine,’

and has competitive ETCs including ‘Banan(antibiotics),’ ‘Herben(hypertension medicine),’ ‘Kremezine(Korea’s

first uremia drug),’ and ‘Anfrade(Chronic Arterial Occlusive Disease drugs).’ It provides patients with basic and

nutritional fluid products and works to improve public health.

| CJ Healthcare is a leader in locally produced APIs which are the basis of high quality finished drugs. It

produces a range of APIs for oral drugs including cephalosporin antibiotics, leading the markets for finished drugs

and APIs.

| CJ Healthcare produces health/functional products along with ETC and API.

‘CONDITION,’ which was launched in 1992 as a hangover alleviation drink, pioneered a new market and has

remained number one in the market. ‘CONDITION’ has been improved through five renewals, and bolstered its

leadership in the market for hangover alleviation drinks with the release of ‘Hutgae CONDITION,’ which contained

Hutgae extract. ‘CONDITION Hut-gae-su’ launched the Hutgae tea market in Korea when it was released in 2010.

It became the number one Hutgae drink in the Korean market within just 16 months after launch, taking 50 per cent

of the market share thanks to its clear concept and positioning.

* 2014 Sales Forecast

1918

HISTORY

CJ Healthcare, From a Domestic Leader to a Global Leader

CJ HealthCare was founded in 1984 and has established a firm lead in the Korean pharmaceutical market,

particularly in ethical drugs(ETC) such as those treating cancer, problems with the circulatory system, diabetes,

and kidney disease, as well as API drugs, and in the health&beauty area. It acquired Hanil Pharmaceutical in 2004

to reinforce its competitive edges in the pharmaceutical market. Over 200 professional researchers are engaged

in R&D at CJ HealthCare to develop innovative therapeutic drugs for the circulatory system, metabolism,

gastrointestinal diseases, and cancer treatments. The company is committed to developing a pipeline for the

development of new drugs targeting gastrointestinal treatments, new anticancer drugs, bio drugs and renewed

therapeutic drugs through joint research with major hospitals, universities, and R&D venture companies.

462.3

448.8

419.2

361.2

289.3

339.8

2014 *

2012

2011

2010

2009

2008

FINANCIAL HIGHLIGHTSBUSINESS OVERVIEW

Sales by year (Unit: billion won)Weight of business as % of sales (As of 2013)

ETC

API

H&B(Health&Beauty)

CJ HEALTHCARE

21

CJ Healthcare has established a strong position in the domestic markets

for ETC(anticancer, circulatory, diabetes, and kidney-related disease) and

H&B(Health & Beauty). CJ Healthcare was the first Korean company to

develop a hepatitis vaccine with ‘Heppacin-B’ in 1986, and it went on to

launch the active pharmaceutical ingredient of cephalosporin antibiotics

‘7-ACA’ in 1991, with ‘Epokine(Erythropoietin)’ in 1998. ‘Epokine’ is a

genetically recombinant drug and it was Korea’s first and the world’s

third development of its kind. Moreover, CJ has an excellent R&D team

focused on R&D to develop drugs that treat cancer, circulatory disease,

metabolism, and gastrointestinal disease as well as bio drugs. The

newly developed gastrointestinal drug has been widely acclaimed for

its competitiveness and is currently in the process of being licensed to

foreign markets.

CJ Healthcare continuously explores and cooperates with promising

R&D ventures on an international scale. It has conducted a joint research

project with the Japanese ‘RaQualia Pharma’ and the U.S.A.-based

‘Neuralstem’ to develop a new drug for the global market. CJ Healthcare

completed the Osong plant in 2010, which is helping to propel CJ’s

global business expansion with its advanced facilities and next-

generation operational system. The Osong plant produces high quality

finished products and cancer treatments, and pursues a CMO(Contract

Manufacturing Organization) business with major foreign pharmaceutical

companies. A production facility for bio drugs is soon to be added to

produce high quality bio drugs, including second generation EPOs that

are currently under development.

CJ Heal thcare commits to go ing g loba l as the number one

pharmaceutical company in the global market, especially in China and

Southeast Asia. For this, it is leveraging its competitive new drugs and bio

drugs and world-class production facilities.

For the No. 1 Pharmaceutical Company with Unmatched Global Competitiveness

CJ ONLYONE R&D center

CJ ONLYONE R&D Cen te r, cu r ren t l y

under construct ion in 37,530m2(appx.

11 ,300 pyungs ) o f l and sp read ove r

109,981m2 (appx.33,270pyungs) of gross

floor area , is a consolidated R&D center

with a CJ Healthcare R&D center, food R&D

center, bio technology R&D center, and animal

life R&D center. CJ ONLYONE R&D Center

will increase synergies by integrating new and

existing R&D centers to lay the foundation

for going global with world-class technical

competence.

Global Pharmaceutical Company, CJ Healthcare

CJ Healthcare commits to contributing to society by enhancing public health based on its

philosophy of ‘Contributing to the National Economy.’ Its efforts to create the highest added

value for customers with its ONLYONE products and services have helped boost its social

contributions. It has led the successful development of ‘EPOKINE,’ a renal anemia medicine,

a first for Korea and only the third in the world. It was developed at a time when Korea was

mostly dependent on imports.

MISSION

CORE COMPETENCIES

Healthe World,Better Life

VISION

We shall endeavor to build a disease-free world by developing and

providing innovative treatments and differentiated healthcare contents.

R&D on new drugs

and bio drugs

Strategic C&D* for

accelerated R&D

Globalized

capabilities

* C&D: It is short for Connect and Development, meaning a joint research process to develop candidate substances through working in collaboration with promising

R&D ventures and universities internationally. It can shorten the development time for new treatments and promote mutual growth with partners.

CJ HEALTHCARE

ETC

CJ Healthcare successfully developed Korea’s first renal anemia drug

‘Epokine.’ It has since developed a number of IMDs and biomedicine

products in a range of areas, including for the circulatory system,

fluid, antibiotics, gastrointestinal diseases, kidney-related diseases,

endocrine system, CNS, cancer treatment, and urology. CJ Healthcare

is emerging as a top pharmaceutical company in the domestic market

with its more than ten blockbusters, including ‘Banan(antibiotics),’

‘Herben(hypertension medicine),’ ‘Kremezine(Korea’s first uremia drug),’

and ‘Anfrade(Chronic Arterial Occlusive Disease drugs).’

2322

Sales by sector (as of 2012)

With therapeut ic drugs for gast r i t i s

and reflux esophagitis, gastrointestinal

simulants and others, CJ Healthcare works

to the betterment of public health and

globalization of the business by building a

strong drug development pipeline for the

next generation of drugs.

Gastrointestinal medicine

CJ Healthcare has the highest quality of

circulatory medicines available, including

for the treatment of high blood pressure,

abnormal hemostasis, and antithrombotic.

It is realizing the dream of good health and a

longer life.

CJ Healthcare contributes to enhancing

the recovery and life quality of diabetics

with effective high-quality products. With its

continuous research and development into

new drugs, it is bolstering its leadership in

the domestic market.

Endocrine medicine

Circulatory

Anticancer

Anti-inflammatory, respiratory, neuropsychiatry and urology

Antibiotics

Fluids

CJ Healthcare contr ibutes to the l i fe

quality and health of patients with chronic

kidneyrelated disease thanks to its range

of drugs that t reat renal anemia and

chronic renal failure, growing as a total care

company through expanding its business

to dialysis.

Kidney

CJ Healthcare has a range of antibiotics

including ‘Banan.’ It is leading the domestic

antibiotic market with its diverse range of

products.

CJ Healthcare brings safety and conve-

nience to the medical environment by

releasing core nutritional fluid products,

as well as various other products. CJ

Healthcare is a leader in the Korean fluid

market.

CJ Healthcare has quality cancer treatment

and anti-emetic drugs that enable it to

lead the domestic cancer treatment drugs

market. It is extending its business to

adjuvant chemotherapy to promote the life

quality of cancer patients.

CJ Hea l t hca re i s a l eade r i n an t i -

inf lammatory, respiratory, neuropsy-

ch ia t ry, and u ro logy. W i th i t s an t i -

inflammatory painkillers, asthma drugs,

ADHD drugs and other diverse products,

it is growing as a leader in ETC.

42.919.8

69.337.4

5551.7

43.260.5

API

Based on its knowhow and original fermentation technology, CJ

Healthcare has started producing the active pharmaceutical ingredient

of cephalosporin antibiotics ‘7-ACA’ and reached over 100 million

dollars in exports, the first Korean pharmaceutical company to do so.

CJ’s Daeso plant produces the cephalosporin antibiotic ‘Banan’ and

other high quality antibiotics, finished pharmaceutical products and

APIs. Widely recognized for its advanced technology by major global

pharmaceutical companies, CJ exports API products to one of the major

Japanese pharmaceutical companies via CMO(Contract Manufacturing

Organization).

Hutgae CONDITION, CONDITION Hut-gae-su

‘CONDITION’ was launched in 1992

and created a new market overnight

for anti-hangover drinks in Korea. The

sister product of ‘Hutgae CONDITION’

is ‘CONDITION Hut-gae-su,’ which was

launched in 2010 and became the best

drink made with Hutgae.

Hongsamjin, Hongsamjin-Gold

‘Hongsamjin,’ ‘Hongsamjin-Gold’ is a

healthcare drink made from red ginseng.

It comes in a bottle and a pouch form. It’s

a concentrate of 6 year old-red ginseng,

deer antler extract, and Ganoderma

lucidum. You can enjoy the flavor and

taste of real red ginseng.

CONDITION Hwan

‘COND IT ION Hwan ’ l aunched i n

2012, which added more convenience

t o c a r r y i n g a ro u n d t h e e x i s t i n g

‘CONDITION.’ It is made out of extracts

of wi l low trees, dr ied orange peel,

and Maka, which help you to get rid

of a hangover just by drinking it in the

morning after.

CJ Healthcare has a range of health/functional products such as

‘Hutgae CONDITION,’ ‘CONDITION Hut-gae-su,’ ‘CONDITION

Hwan,’ ‘Hongsamjin,’ and ‘Hongsamjin-Gold,’ all of which are best-

selling products. CJ Healthcare commits to providing consumers with

treatments for a healthier life.

H&B(Health&Beauty)

billion won

billion won

billion won

billion won

billion won

billion won

billion won

billion won

CJ HEALTHCARE

2524

R&D Center

Established in 1984, CJ Healthcare R&D Center has made a number of

successes. It successfully developed Interferon in 1986, commercialized

the first generation hepatitis vaccine, and developed the active

pharmaceutical ingredient of cephalosporin antibiotics ‘7-ACA’ in 1989.

It developed the anti-inflammatory enzyme ‘Kindorase’ in 1992 which

won the Changyeongsil Awards. The R&D center has since gone on to

launch ‘Cefotaxime,’ ‘Vancomycin,’ and ‘Cefazoline’ and was selected

as an excellent R&D center by the Ministry of Science and Technology in

1997 and won the second Changyeongsil Awards with the anemia drug

‘Epokine’ in 1998.

CJ Healthcare set up a mid and long term strategy to meet the targets set

out in the 2025 Global Pharma Company vision. It works hard to develop

new drugs, IMDs(Incrementally Modified Drugs), and bio drugs. It plans to

launch IMDs and new drugs for circulatory system/metabolism such as

combination drugs for diabetes under a short-term goal, and to develop

a future engine growth to extend the pipeline for cancer treatment drugs,

gastrointestinal drugs and the bio beta pipeline to achieve its long-term

goals.

Moreover, CJ Healthcare will expand C&D(Connect&Development) for

joint research and license it with major R&D ventures and universities,

which will shorten the time to develop candidate substances for new

drugs and eventually lead to mutual growth with partners. CJ ONLYONE

R&D Center, which is under construction, consolidates four business

areas of food, bio, pharma and feed& livestock, to maximize the synergies

among its businesses. ‘CJ Healthcare R&D Center’ will lead its growth to

become a 2025 global pharma company through aggressive R&D and

successful results.

Building a Disease-Free World through Ceaseless Research and Innovation

25

LONG-TERM BASIS R&D

RESEARCH AREA

BiologicalsNew drug

development

Natural medicines

Structure changes

New technology research

Combination

R&DGeneric drug

Detect a diseaseExplore a leading

substanceExplore a candid

to develop

A pharmaceutical industry is a technical and R&D-intensive industry. The process

from exploring a candidate substance to its development, clinical trials, approval

and production takes over 10 years and costs tens of billions of money on

average. CJ Healthcare has a strong drugs development pipeline with synthetic

new drugs, natural and bio drugs that enable it to move forward as a global

pharmaceutical company by 2025.

CJ Healthcare R&D Center, playing a

leading role to grow as the 2025 global

pharmaceutical company through

aggressive R&D investment.

Clinical trials ApprovalPhase 1

Phase 2

Phase 3

CJ HEALTHCARE

27

Infrastructure

With Cutting-Edge Facilities that Produce Reliable and High-Quality Drugs for the Global Market

CJ Healthcare produces quality drugs at its Osong, Icheon, and Daeso

plants through a strict quality control system. Its Icheon plant produces

bio drugs, its Daeso plant produces active pharmaceutical ingredients,

fluids, and cephalosporin antibiotics, and its Osong plant, which was

completed in 2010, produces cancer treatment drugs and finished

products. In particular, the Osong plant has a production facility that

meets the ‘cGMP’(Good manufacturing practice) standard required by

FDA/EU, which enables the plant to manufacture and manage products

in accordance with the import regulations of the U.S.A. and other

advanced countries. Thus, the Osong plant is able to undertake out

the CMO business with major pharmaceutical companies. The Osong

Plant is production base that’s fit to compete on the global market and

was designed to enable expansion. The cutting-edge production facility

for bio drugs includes the second generation of EPOs, which is under

development at this moment, and will be built at the Osong plant.

CJ Healthcare has a EQMS(Enterprise Quality Management System)

in place with highly experienced experts in order to control quality at

every level from the development of drugs through to the use of drugs

by patients. It has implemented the highest level of CSV(Computer

System Validation) across all areas of the system. Moreover, CJ

Healthcare has introduced RFID, MES and LIMS systems to improve

the manufacturing and QC process. This has helped it to achieve cost

savings and strengthen its competitive edge to compete at a global level.

CJ Healthcare produces high quality drugs that meet the safety and

effectiveness standard and GMP standard by implementing an advanced

enterprise quality management system at all levels from the research and

development of a drug to the treatment.

Production Infrastructure

Icheon Plant • gene recombination products,

vaccine, injection etc.

Daeso Plant • fluids, APIs, cephalosporin

antibiotics

Osong Plant • Cancer treatment, finished

products

26

CJ Healthcare’s successful entry into emerging markets including

China and Southeast Asia is helping it to emerge as a leader in the

global pharmaceutical market.

CJ HEALTHCARE

28

CJ Healthcare was not content to keep its sights solely on the domestic

market, as other pharmaceutical companies did, but seized the initiative to

expand internationally with APIs and finished pharmaceutical products that

leverage its expertise in biotechnology. In 1986, CJ Healthcare became the

first Korean company to develop the hepatitis vaccine ‘Hepaccin-B’ using

locally developed technology. CJ Healthcare in 1995 reached over 100

million dollars in exports, the first local pharmaceutical company to do so, and

successfully exported bio drugs with its renal anemia medicine ‘Epokine.’ CJ

Healthcare makes every effort to become a global pharmaceutical company

by growing together with its business partners in R&D and sales, sharing

results, and conducting joint R&D. It entered into a joint investment project

in 2008 with the U.S.A.-based stem cell research company ‘Neuralstem,’

to develop a therapeutic stem cell drug for the central nervous system and

completed a license contract on ‘RQ-4,’ the candidate substance to control

gastric acid with the Japanese ‘RaQualia Pharma’ in 2010. It has bolstered

its pipeline for gastrointestinal drugs in order to complete a license contract

on 5-HT4partial agonist ‘RQ-10’ in 2011. It creates value by entering into a

license contract on various candidate substances and new drugs with major

pharmaceutical companies.

A Global Pharmaceutical Company that’s Active in International Markets

Global Activities

KOREA

U.S.A.JAPAN

GERMANY

CHINA

VIETNAM

Headquarters Corporation Branch office

BUSINESS

NETWORK

CJ Healthcare aims to be the number

one global pharmaceutical company and

has been expanding exports to Japan,

Southeast Asia, South Amer ica, and

Europe based on the success it has already

achieved and its R&D investment. It commits

to growing as a global pharmaceutical

company through continuous investment in

R&D for active growth internationally.

30

CJ CheilJedang

330, Dongho-ro, Jung-gu, Seoul

CJ CheilJedang Center

TEL. 02-6740-1114

www.cj.co.kr

CJ Foodville

330, Dongho-ro, Jung-gu, Seoul

CJ CheilJedang Center

TEL. 1577-0700

FAX. 02-6740-4349

www.cjfoodville.co.kr

CJ Freshway

330, Dongho-ro, Jung-gu, Seoul

CJ CheilJedang Center

TEL. 02-2149-6114

FAX. 02-2149-6098

www.cjfreshway.com

CJ Healthcare

330, Dongho-ro, Jung-gu, Seoul

CJ CheilJedang Center

TEL. 02-6740-2119

FAX. 02-6740-2491

www.cjp.co.kr

CJ O Shopping

870-13, Gwacheon Daero,

Seocho-gu, Seoul

TEL. 02-2107-0112

FAX. 02-2107-0562

www.CJmall.com

CJ korea express

53, 9 Gil, Sejong Daero, Jung-gu, Seoul

TEL. 02-3782-0114

FAX. 02-3782-0791

www.cjkoreaexpress.co.kr

CJ Olive Young

12 CJ building, 2 Gil, Sowal-ro,

Jung-gu, Seoul

TEL. 1577-4887

FAX. 02-726-8799

www.oliveyoung.co.kr

CJ Educations

330, Dongho-ro, Jung-gu, Seoul

CJ CheilJedang Center

TEL. 02-2008-5800

FAX. 02-2275-8550

www.cjithink.com

CJ Corporation

12 CJ Center, 2 Gil, Sowal-ro,

Jung-gu, Seoul

TEL. 02-726-8114

www.cj.net

CJ E&M

66, Sangamsan-ro, Mapo-gu, Seoul

CJ E&M Center

TEL. 02-371-5501

FAX. 02-371-6340

www.cjenm.com

CJ CGV

434, Worldcupbuk-ro, Mapo-gu, Seoul

Sangam IT Tower

TEL. 02-371-6660

FAX. 02-371-6530

www.cgv.co.kr

CJ HelloVision

396, Worldcupbuk-ro, Mapo-gu, Seoul

Nuri Dream Square Business Tower

TEL. 1855-1000

FAX. 02-376-6194

www.cjhellovision.com

CJ E&C

12 CJ Building, 2 Gil, Sowal-ro,

Jung-gu, Seoul

TEL. 02-726-9504

FAX. 02-726-9508~9509

www.cjenc.co.kr

CJ Systems

Bundang First Tower, 55bun gil,

Bundang-ro, Bundang-gu,

Sungnam-si, Gyeonggi-do

TEL. 031-776-5999

FAX. 031-776-5777

www.cjsystems.co.kr

CJ Powercast

Vision World Building, 19, 180bun gil,

Seohyung-ro, Bundang-gu,

Sungnam-si, Gyeonggi-do

TEL. 031-780-0001

FAX. 031-780-0099

www.cjpowercast.co.kr