Global Merchandising Company - CJ O Shoppingcjoshopping.com/ir/data/Annual report_2016.pdfContents Profile Corporate Profile 03 Chronology 04 CEO Message 06 Financial Highlights 08

Global Merchandising Company

Contents

Profile

Corporate Profile 03

Chronology 04

CEO Message 06

Financial Highlights 08

Vision & Mission 10

Business Domain 12

2016 at a Glance 14

Financial Section

The Current status of shares

The Current State of a Parent Company, Subsidiariesand Corporate Combination

The Current State of Major Shareholders, Directors and Auditors

Stand alone financial statements

Stand alone Income Statement

Statement of Appropriation of Retained Earnings (Draft)

Consolidated financial statements

Consolidated Income Statement

The Current State of Creditors and Investment

Main Financial Ratio(Based on Stand alone financial statements)

Main Financial Ratio(Based on consolidated financial statements)

An Audit Report by Audit Committee

Audit Report by an Outside Auditor

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CJ O shopping will offer more value than

expected by providing exciting products and

services, in addition to useful programs

and contents that can give a pleasure

and convenience.

O!Surprising, Novel &

Revolutionary

CJ O Shopping

CJ OSHOPPING ANNUAL REPORT 2016

4

Chronology

1994 ~2002 2003~2008 1994 10 Selected as a homeshopping channel operator

12 Established Homeshopping TV Corporation

199508 Launched the Korea’s first TV homeshopping show

199611 Changed name of channel from ‘HSTV’ to ‘39 Shopping’

199701 Launched 24/7 live show

199903 Established partnership with 7 state test organizations for the first time in Korea

07 Acquired ISO 9002 for the first time in the industry and changed its name into 39 Shopping

11 Initiated registered transactions on KOSDAQ for the first time in the industry

200006 Acquired by CJ and changed its name into CJ 39 Shopping

09 Opened Gunpo Logistics Center

200101 Established CJ Telenics, a specialized telemarketing company

07 Relocated the HQ into Bangbae-dong

08 Opened CJmall, an Internet shopping mall

200203 Initiated satellite broadcasting Opened the 2nd branch of call center in Busan.

09 Recorded 1 trillion won in sales (based on transactions) and opened Call Center No. 3 in Daejeon

10 Renamed as ‘CJ Homeshopping corp’

12 Ranked 1st in NCSI TV Homeshopping

200311 CJmall acquired ‘BS7799,’ the international information protection certification, for the first time in the shopping mall industry

200404 Opened ‘Dong Bang CJ’ in Shanghai09 Disclosed a TV programming schedule for 2 weeks and initiated pre-order service for the first time in the industry10 Initiated “eTV Homeshopping” service that combines broadcasting with web11 Ranked 1st in the NBCI TV homeshopping sector and the Internet shopping mall sector

200501 ‘Please Order Love,’ a social contribution program, won Excellent Program of the Month from Korea Communications Commission03 Ranked 1st in the K-BPI Internet shopping mall sector by data broadcasting operators 09 CJmall ranked 1st in KS-SQI12 Initiated T-Commerce for the first time in Korea (CJTmall)

200603 Ranked 1st in the (K-BPI) TV homeshopping sector05 CJmall acquired ISO27001, the international security standard06 Acquired Dream City, a broadcasting company09 Acquired Broadband Solutions 12 CJmall received the grand prize in the integrated shopping sector of ‘Web Award Korea 2006’ (Web Award Committee)

200703 Ranked 1st in the K-BPI TV homeshopping sector for 2 consecutive years04 Proclaimed introduction of Consumer Complaint Monitoring System(CCMS)

200801 Acquired CCMS certification for the first time in the industry (Fair Trade Commission)Received City-Rural Interchange Government Incentive President Award in 2007 and the grand prize in the 10th anniversary of NCSI05 Held a proclamation ceremony to introduce ethical management07 Opened ‘CJ Worldis’ (an online travel agency) 08 Completed construction of a new office building in Bangbae-dong 10 Opened TTCJ in Tianjin, China

4 | 5

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2009~2012 2013~2016 200903 Renamed as CJ O Shopping Established ‘Star CJ’ (Presently Shop CJ)

201003 Ranked 1st in the K-BPI TV homeshopping sector for five consecutive years and Korea Marketing Frontier Award in the marketing brand sector

07 Initiated a 24/7 show in ‘Star CJ’ in India

11 Ranked 1st in the NBCI TV homeshopping sector for 5 consecutive years

12 Received KNPS Award in the Internet shopping mall sector

201101 Acquired Prime Shopping, a Japanese homeshopping company, and established CJ Prime Shopping

03 Won Korea Marketing Frontier Award in the global marketing sector

04 Won Korea Service Marketing Award in the service marketing sector and SMBA Merit Award for SME Single PPM Policy

07 Opened ‘SCJ TV’ in Vietnam Opened Channel 2 of ‘Dong Bang CJ’

09 Won Prime Minister Award on Product Safety Day Won Seoul Welfare Award in the excellent corporate social contribution program sector (Seoul Welfare Foundation)

10 Won FAPRA (Federation of Asia-Pacific Retailers Association) Awards in the innovative distribution sector and opened ‘Nam Bang CJ’ in Guangzhou, China

11 Won Korea Distribution Presidential Award (government prize) (GS1 Korea of Korea Chamber of Commerce and Industry)

12 Ranked 1st in the NCSI TV homeshopping sector for 10 consecutive years and 1st in the Internet shopping mall sector for 8 consecutive years

201204 Won Mobile Brand Award in the TV homeshopping sector (Maeil Economic Daily) and ranked 1st in Consumer Quality Satisfaction Award in the mobile shopping sector

06 Opened ‘G”CJ O Shopping’ in Thailand

10 Won 10th Anniversary Beautiful Store Appreciation Award

11 Won Web Award Korea (KIPFA) Excellent e-Trust Company Award (The Ministry of Knowledge Economy & National IT Industry Promotion Agency)

12 Opened ‘MCJ’ in Turkey Excellent Family-Friendly Company (The Ministry of Gender Equality and Family & KMR)

201304 Won Mobile Brand Award in the TV homeshopping sector for 2 consecutive years

05 Launched DMB Channel Opened ‘SCJ’ Studio in Vietnam

10 Opened ‘ACJ’ in the Philippines

201404 Designated as ‘Global Big Buyer Club’ by KITA Acquired Certificate of Company-Specific Approved Exporter for the first time as a large domestic distributor

05 Won Mobile Brand Award in the online shopping mall sector (Maeil Economic Daily) and Excellent Gender Equality Company Award by the Ministry of Employment and Labor

10 Selected as the Best Angel Company in the consumption material sector (e-Daily) Won IR Grand Prize of Korea

12 Won Industry Award on the 51st Trade Day (for supporting SMEs advancing into overseas markets), Excellent Shared Growth Company Award by Korea Commission for Corporate Partnership and the 13th Information Protection Award by The Ministry of Science, ICT and Future Planning and Korea Internet & Security Agency

201504 Renamed as ‘Shop CJ’

05 Launched ‘CJ O Shopping Plus,’ a T-Commerce channel

06 Initiated nationwide one-day delivery for the first time

06 Opened CJ Grand Shopping in Mexico

09 Selected as Excellent Labor Culture Company (The Ministry of Employment & Labor)

12 ‘G"CJ O Shopping’ of Thailand won Trade, Industry and Energy Minister Award (for selling SME products that worth 10 billion won for 3 consecutive years)

201603 Ranked 1st in the K-BPI TV homeshopping sector for 11 consecutive years Won Excellent KOSDAQ Company Award for disclosure.

04 Opened CJ WOW Shop in Malaysia

05 Recorded 1,000 hours in free broadcasting of ‘One Village, One Luxury Product’ and ‘One Company, One Luxury Product’, which aimed to support SMEs and farm houses

09 Established ‘BCJ’, a joint venture for e-Commerce solution in China

10 Won Health & Welfare Minister Award in National Social Welfare Event (for corporate social contribution)


6

CEO Message

The company aims to realize 'Trendy Lifestyle Shopper with Value'

while leading a new shopping culture.

6 | 7

Greetings! My name is Min-Heoi Heo, CEO of CJ O Shopping.Thank you for taking the time out of your busy schedule to be present at the 23rd CJ O Shopping General Shareholders’ Meeting. Last year, CJ O Shopping was the leader of the industry in terms of most operating profits attained thanks to its newly introduced management strategy focused squarely on profitability in the stagnant distribution market, while also pursuing external growth. A particularly notable achievement was our remarkable profits obtained from good selling of competitive TV product, successful launcjing of T-commerce, and substantial operation of our online business, CJmall. The number of customers using not only TV channel but also online channel grows, CJ O Shopping is achieving significant results, coinciding with its corporate strategy. The results include Our GMV(Gross merchandising volume) increased by 2.4%YoY to 2.9tril.won, sales declined by 2.1% 1tril.won and operating profit grew 27% to 145bil.won We also expanded into new overseas markets with the establishment of joint venture with Malaysian company, Media Prima, in April, as well as a joint venture with China-based company, Baozun, in September, laying the foundation for successful expansion into the Chinese online marketplace. In pursuit of our company vision“ Trendy Lifestyle Shopper with Value”, CJ O Shopping is striving to become a global merchandising company. This year, we plan to lay the foundation for innovation and growth centered on our company’s exclusive selling product in Korea(below, OnlyOne) and our platform business, while directing our energy towards the following four areas to meet the expectations of the marketplace. Strengthening Product-based BusinessAs the main focal point of the retail industry is gravitating towards products, it is crucial to enhance the competence in merchandising to keep up with the changing trends. To this end, CJ O Shopping aims to further improve its specialty in OnlyOne brands by category, expand investment in enhancing product competitiveness, and pursue bold mergers and acquisitions. In doing so, the company will ensure its competitiveness in the marketplace as it further differentiates its strong distribution platform. Unrivaled Market Leadership Based on Multi-channel MarketingOur platform business will be the leader of the industry based on competitive power of TV products and multi-channel. We will further enhance our main areas of proficiency, which are TV channel and online channel, CJmall, while continuously expanding our multi-channel customer base using both platforms in order to fuel external growth of our business. In our mobile channel, we will improve the service quality of CJmall and will build competitive contents through strategic partnerships and investments. In order to effectively respond to the rapid changes occurring in the distribution industry, we will also focus our strengths on cultivating new business models centered on mobile devices. Additionally, we will utilize T-Commerce, which has the most expansive coverage in the industry, as a solution directed to provide information-based content to young people with the aim of acquiring

them as customers. Pursuing Improvement of Our Global Business Structure and Generating ResultsWith regards to our overseas business, CJ O Shopping will strive to increase profitability and expand our coverage effectively based on the local circumstances of each international region, as well as explore new business opportunities in surrounding countries centering on local strategic points. In addition, we will develop new service-based models differentiated from existing methods used to solid overseas business by centering them on changes in local retail markets, which are becoming ever more mobile-centric. CJ IMC will increase sales through more sales channels and strengthen its organizational structure; scale up on/offline sales of “OnlyOne” products in addition to sales through its TV homeshopping channel; and valiantly strive to increase sales overseas. Establishment of Superb Organizational Culture, Realizing the CJ Management PhilosophyIn 2017, CJ O Shopping will form a dynamic culture of creativity and desire to conquer challenges based on our management philosophy which places emphasis on honesty, passion and creativity. We will also establish a culture of mutual benefit that places our customers, partner companies and shareholders before all else in order to realize our founding philosophy centered upon contribution to national advancement through successful business. Dear, Shareholders! CJ O Shopping is doing its utmost to be a provider of optimized shopping services which fulfill every need of the customer. We will continue to be a company that conquers challenges together with our partners, while striving for mutual benefit and improving corporate value for our shareholders. We will achieve our company vision“Trendy Lifestyle Shopper with Value” while taking the initiative in creating a new kind of shopping culture. We will fulfill our responsibilities as a trend leader that brings new value to shopping.As a frontier of TV homeshopping industry in Korea, CJ O Shopping will put forth new growth models in homeshopping before advancing into the retail and product-related industries. We here at CJ O Shopping, appreciate your unwavering support in our efforts to take new leaps forward in domestic and international markets and exploring new growth engines while overcoming obstacles. It is my sincere hope that each and every shareholder benefits and has an enriching experience on account of our endeavors in the year 2017.

CE

O M

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CJ O Shopping CEO Min-Heoi Heo


8

Our sales declined 2.1%YoY to 1trill. won, however, operating profit increased 27.0% YoY to 145bil. won in 2016.

Financial Statements Distinction 23rd 22nd 21st

Income Statement Sales 1,095,911 1,119,375 1,277,324

Operating Profit 144,929 114,111 142,158

Ordinary profit 44,803 86,537 139,391

Net Income 16,082 60,297 100,457

Statement of Financial Position

Total Assets 1,111,514 1,176,225 1,178,055

Total 428,379 494,789 539,101

Total capital 683,135 681,436 638,954

Financial Highlights

Financial Statements

(Unit: 1 million won)

(Unit: 1 million won)

Sales

23rd 22nd 21st23rd 22nd 21st

1,111,514

Total Assets

144,929

114,111

142,158

Operating Profit

23rd 22nd 21st

1,095,9111,119,375

1,277,324

300,000

0

600,000

900,000

1,200,000

1,500,000

30,000

60,000

90,000

0

120,000

150,000

1,176,2251,178,055

200,000

400,000

600,000

800,000

1,000,000

0

1,200,000

8 | 9

Sales breakdown

Fin

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11.1 27.4

20.8

12.2 26.0

20.2

9.9

12.3

25.9

22.7

9.03.8

13.3

12.415.2

10.13.9

8.7

15.2

12.9

7.1

Product portfolio(based on gross merchandising volume)

(Unit: %)

23rd 22nd 21st

● Apparel

● Household goods

● Electronic

● Hair/Cosmetics

● Fashion/Jewely

● Interior

● Others

● Apparel

● Household goods

● Electronic

● Hair/Cosmetics

● Fashion/Jewely

● Interior

● Others

● Apparel

● Household goods

● Electronic

● Hair/Cosmetics

● Fashion/Jewely

● Interior

● Others

25.9%

22.7%

12.3%

15.2%

11.1%

9.0%

3.8%

27.4%

20.8%

13.3%

12.4%

12.2%

10.1%

3.9%

26.0%

20.2%

15.2%

12.9%

9.9%

8.7%

7.1%

77.0

18.74.3

76.4

19.0 4.6

63.5

30.8

16.9

Business (Unit: %)

23rd 22nd 21st

● Profits from Fees

● Product Sales

● Ads/Other Sales


● Product Sales

● Ads/Other Sales


● Product Sales

● Ads/Other Sales

77.0%

18.7%

4.3%

76.4%

19.0%

4.6%

63.5%

30.8%

5.7%

63.3

28.5

6.6 1.6

63.7

25.3

9.21.8 2.1

64.9

16.1

16.9

Channel

(Unit: %)

23rd 22nd 21st

● TV homeshopping

● Mobile & Others

● Internet

● Catalog

● TV homeshopping

● Mobile & Others

● Internet

● Catalog

● TV homeshopping

● Mobile & Others

● Internet

● Catalog

63.3%

28.5%

6.6%

1.6%

63.7%

25.3%

9.2%

1.8%

64.9%

16.1%

16.9%

2.1%


10

Vision

Trendy Lifestyle Shopper with Value

Leading the trends and directing lifestyles for the benefit of the customers

Providing optimized solutions catered to individual lifestyles

Providing products and services of excellent value at reasonable costs

Mission

Global Merchandising Company

Through diverse media channels, provide enriching experiences and value for

customers worldwide by suggesting OnlyOne product brands that lead the trendy

lifestyle

Strategy

Increasing global sales through the IMC sales channel and growth centered on

OnlyOne product/brand business enhancement

Expanding to diverse channels in the global marketplace with high growth potential,

starting with the TV platform

Becoming an ‘Omni-Channel’ business through expansion into new platforms and

increasing associative connections with company channels

Securing new growth engines through proactive mergers and acquisitions

Vision & Mission

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Business Domain

TV HomeshoppingOnline Shopping MallCatalogT-CommerceMobile CommerceGlobal Business

12 | 13B

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TV Homeshopping

Since 1995 when CJ O Shopping first launched TV

homeshopping channel in Korea, we have led the

cultural direction of the retail industry by creating a new,

enjoyable shopping culture that can be experienced

regardless of time and location. We have been a frontier

in the industry as we’ve strived to create differentiated

business models in order to enhance our competitiveness

in selling of exclusive products and in broadcasting, while

emerging as Korea’s best homeshopping service

provider by the execution of our combined communication

strategies. CJ O Shopping is demonstrating its leadership

in the TV homeshopping industry through diverse

activities, such as development of new and high-value

products and‘OnlyOne’brands.

T-Commerce

In May 2015, CJ O Shopping launched the T-Commerce

channel, CJ O Shopping Plus, for the purpose of

providing a customer-centered, two-way data shopping

service. CJ O Shopping Plus not only offers TV products,

but also allows consumers to enjoy the pleasure of

looking through the products at the moment desired by

them through the VOD service. We have also created

SMB Event Hall, where SMEs can have their products

marketed for free and use it as a stepping stone to their

future success, while we may discover new products.

Online Shopping Mall

CJmall spare no effort in continually developing new

services and securing a diversity of product groups. We

provide a variety of specialized websites, which

introduce the latest products by category and provide

the users with utmost convenience. Through stringent

quality control, reasonable prices, and reliable services,

CJmall is becoming the most favored shopping mall

among female customers in their 20’s and 30’s.

Mobile Commerce

CJ O Shopping is doing its absolute utmost to secure

new business models in response to the changing

trends in media. Since the release of an I phone

application first in the industry in April 2010, CJ O

Shopping has continued to invest and grow in the

mobile-based shopping industry. In order to create

great shopping environments for customers, we are

persistently working on our mobile services by re-

organizing business and product composition and

are making consistent efforts to provide diverse

shopping-related content optimized to individual

customers.

Catalog

CJ O Shopping is releasing products in various different

categories, including underwear, fashion, household

items and foods, and continues to receive favorable

responses as it provides customers with a pleasurable

shopping experience. It provides customers with

convenient and personalized shopping services suited

to their individual lifestyles, which they can access at

any time and in any place. Also, CJ O Shopping brings

to life a truly exciting shopping experience, which

provides customers with unmissable benefits and

diverse content.

Global Business

In 2004, CJ O Shopping was the first in the industry to

open an overseas platform in Shanghai, China, and

became a trusted first-rate retail channel that enables

customers to buy with confidence. The company also

established overseas platforms in India in 2009 and in

Vietnam in 2011, completing an Asia homeshopping belt.

In 2012, CJ O Shopping advanced into Turkey and into

Philippines in subsequent year. CJ O Shopping was the

first Korean company in the industry to make forays into

Mexico in June 2015, and is fully committed to promote

Korean-style homeshopping to international markets

outside of Asia.


14

2016 at a Glance

Advancement into the Malaysian Homeshopping MarketIn January 2016, CJ O Shopping established a joint venture with Media Prima, a promising media group in Malaysia. Based on the vast experience in the TV homeshopping industry at home and overseas, CJ O Shopping takes charge of practical management (including CEO), while Media Prima provides the infrastructure by utilizing its extensive experience in production and broadcasting content. On April 1, 2016, CJ WOW SHOP was launched in a way known as Time Slot, which is airing homeshopping channel on public TV program channel. Sixteen out of the seventeen products introduced on the show were manufactured by Korean SMEs, which significantly contributed to the expansion of overseas sales routes of their products. By offering customer-centric services and entirely new shopping experiences, CJ O Shopping is bringing tremendous innovation to the market.

Recorded 1,000 Hours of Free Broadcasting for SMEs As of April 2016, CJ O Shopping recorded one thousand hours of accumulated free broadcasting to support sales routes of SMEs and farming and fishing villages.‘One-Village, One-Luxury Product’, a program first launched in the industry in August 2007, was developed to facilitate sales of harvested, livestock, and fisheries products in the domestic market. Another program called‘One-Company, One-Luxury Product’modeled after the‘One-Village, One-Luxury Product’, was established in 2012 to help SMEs in expanding sales routes. In particular, the‘One-Company, One-Luxury Product’ emerged as a representative of SME-support-program that SMBA, the Korea Commission for Corporate Partnership, and four other homeshopping companies (GS, Lotte, Hyundai, and CJ O Shopping) established an agreement to support the sales of SME products by jointly airing free broadcasting for SME products.

Dedicated Program for Korean Products in Homeshopping in Vietnam and Thailand As a result of Korean Wave occurring in Southeast Asia, CJ O Shopping has developed a program dedicated to introduce Korean products in Vietnam and Thailand with the aim of proactively selling the products. Since July 2016, SCJ of Vietnam has aired total of thirty Korean products, including kitchen utensils, healthcare products, and hair & beauty products, under the weekly program called Golden Zone for Korean Products. Also G"CJ of Thailand broadcasted the primetime show, GURU Korea once a week since last August. The sales of the products that were introduced during the show, a total of twelve, has increased by 30% compare to the initial stage.

Advancement into the Chinese e-Commerce Solution Sector Joining forces with Baozun, one of the largest partners of Alibaba, CJ O Shopping launched an e-Commerce solution business centered on Korean brands product. CJ O Shopping and Baozun established the joint venture of BCJ (Baozun-CJ E-commerce) by investing $6.7 million at a ratio of 49% to 51% each. CJ O Shopping takes charge of management (CEO), product development, and sourcing of BCJ, while Baozun is in charge of product distribution, marketing, logistics, and IT by utilizing an excellent local platform network and infrastructure. It is the plan of CJ O Shopping to lay the foundation for more convenient advancement into the online market in China by offering services in various areas, including sales, marketing, logistics, and CS, to domestic SMEs.

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Operation of Market Exploitation Team to Help SMEs Advance into Overseas Markets In November 2016, CJ O Shopping’s‘Homeshopping Market Exploitation Team Event’was held in Ho Chi Minh City in Vietnam over four days to celebrate its 3rd anniversary. Fifteen SMEs, which desire to enter the Vietnamese and other Southeast Asian markets, have participated in the event. The event offered the opportunity to discuss about each country’s favorable products and entry strategy with MDs from‘SCJ’of Vietnam and‘CJ IMC Southeast Asia, a product supply subsidiary of CJ O Shopping responsible for providing Korean products to major ASEAN countries, such as Thailand, Malaysia and the Philippines.

Reception of Health & Welfare Minister Award Organized by Korea National Council on Social Welfare CJ O Shopping received the Health & Welfare Minister Award at the 2016 National Social Welfare Sharing Event last October for its contributions to expand a culture of caring and sharing through a fund-raising event broadcasted on TV, as well as volunteer activities conducted by employees. Using the special characteristics of homeshopping, the broadcasting retail business, CJ O Shopping has aired Order Your Love, a TV fund-raising program for 140 times since 2004 and have donated the funds to Social Welfare Society, Inc. and other social organizations to support the living expenses, medical costs, and educational expenses of the underprivileged classes. As of 2015, the company have donated cash and goods worth total of KRW 6 billion to help those who need support and care, and 70% of employees have volunteered for 9 hours per annum.

Launch of an Offline Store within a Department Store for the First Time in the Industry In April 2016, CJ O Shopping opened STYLE ON AIR +, an offline shop located inside a department store, for the first time in the homeshopping industry. Since STYLE ON AIR + in AK Plaza in Suwon is placed on the same floor as designer brands for women, it is frequently visited by female customers in their 20’s and 30’s. High-quality products, classified in six categories of fashion, beauty, kitchen, lifestyle, travel items, and foods, on a par with those sold in upscale department stores are displayed to suggest new lifestyles to customers.

Launching of the Casual Golf Wear Brand, Jean-Michel BasquiatBased on a license contract with the Jean-Michel Basquiat Foundation, CJ O Shopping exclusively launched the casual golf-wear brand, Jean-Michel Basquiat.‘Jean-Michel Basquiat’is a genius graffiti artist based in New York, who has been cited as‘Black Picasso’as he led the artistic field of the U.S. in the 1980s. CJ O Shopping plans to choose from his artworks to use as seasonal themes and reflect these in our products to improve design and material and to create a premium casual golf wear brand.

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Main business purpose of the company

Financial Section


1. Comprehensive cable broadcasting business

2. Production and supply of comprehensive cable

broadcasting-related business

3. Comprehensive cable broadcasting ads and cultural PR business

4. Shareholding business aimed to control business of subsidiaries

through equity holding

5. Financial & administrative support for subsidiaries

(including a subsidiary of subsidiaries)

6. Administrative support for joint development of products and common utilization of sale, facility and IT systems along with subsidiaries

7. Purchase and supply of overseas programs

8. Exchange with domestic and foreign broadcasters and producers

9. Manufacture, wholesale and retail of various products

10. Mail-order business

11. e-Commerce

12. Sale of lifestyle necessities

13. Food processing & dressmaking sale

14. Consignment, sale and brokerage of farm, fisheries and livestock products

15. Liquor brokerage

16. Cafeteria

17. Retail service and consignment

18. Tourism business including travel business/travel agency

19. Operation of sports & leisure facilities

20. Storage and warehouse

21. Rental & management service for real estate, machinery and equipment

22. Organization, sponsorship and production agency for events and

cultural events

23. Education & publication business, production of video, records and

tapes and domestic and overseas sale

24. Manufacture and sale of products and rental of trademarks in accordance with Trademark Act

25. Rental of program production facilities, training facilities & equipment

26. Database-related facility investment and operation

27. Collection, processing and sale of information at home and abroad

28. Development of software and system and provision of services

29. Insurance agency

30. Research consultation on opinion poll and research information database service

31. Sale of medical supplies

32. Production of ads and agency

33. Mobile communication device agency

34. Marriage and move service

35. Internet lottery sale agency

36. Job information provider

37. Internet hosting and service

38. Imported auto sale & agency

39. Cosmetics manufacture & sale

40. Door-to-door sale

41. Real estate sale agency

42. Other wholesale & retail

43. Import & export related to each of the above items

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The Current status of shares

The Current State of a Parent Company, Subsidiaries and Corporate Combination

• The Current State of a Parent Company

※ Not Applicable (A parent company owns more than 50% of issued shares)

• The Current State of Subsidiaries(Unit: Share, %)

Company Name Location Capital Main Business The Number of Shares Rate of Shareholding

CJ Hello Vision Corp. Korea 193,617 mil.won Cable Broadcasting 41,756,284 53.92

CJ Telenics Corp. Korea 3,500mil.won Manpower Supply 700,000 100

Super Race Corp. Korea 1,816 mil.won Exhibition & Event Agency 358,800 98.79

CMI Holdings Ltd. China HKD 355mil Overseas Corporation Investment & Management 70,972,510 100

CJ Prime Shopping Inc. Japan JPY 98mil Wholesale & Product Brokerage 8,945,800 99.78

※ The company recorded more 50% in the rate of shareholding

• The Current State of Concurrent Position of Executives in a Parent Company and Subsidiaries

Executives Holding Position Concurrently Concurrent Company Remarks

Name Position Company Name Position

Min-Heoi Heo CEOCJ Cheil Jedang Corp. Inside Director -

CJ Health Care Corp. Inside Director -

In-su Lee Inside Director CJ Telenics Corp. CEO -

Type of share Number of shares Dividend per share Face value per share

Ordinary share 6,215,518 2,500 won 5,000 won


18

The Current State of Major Shareholders, Directors and Auditors

• The Current State of Major Shareholders(Unit : Share, %)

Shareholder Name The Number of SharesRate of

Shareholding Base DateTransaction with the

Company

CJ Corp. 2,486,214 40.00% 2016.12.31 -

NPS1) 718,329 11.56% 2016.12.31 -

Alianz Global Investors Asset Management 2) 503,019 8.09% 2016.09.05 -

Korea Value Asset Management 3) 313,674 5.05% 2016.11.22 -

1) Based on public notification (NPS, 2017.01.04)

2) Based on public notification (Alianz Global Investors Asset Management, 2016.09.08)

3) Based on public notification (Korea Value Asset Management, 2016.11.23)

• The Current State of Directors and Auditors(As of Dec. 31, 2016)

Distinction of directors Name (Date of Birth) Obligation or Shared Responsibility Position Transactions with the

Company

Inside

Min-Heoi Heo (1962.03) Present CEO of CJ O Shopping CEO None

Hyun-jae Shin (1961.04) Present General Executive Director Senior Vice President None

Seung-ro Yun (1962.03) Present Global Business Director of CJ O Shopping Vice President None

In-su Lee (1964.04) Present CEO of CJ Telenics Vice President None

Outside

Jae-cheon Kim (1954.11) Present Kim Jae-cheon Tax & Accounting Firm Audit Committee Chair None

Jong-bin Kim (1947.09) Legal Advisor with Hwawoo Law Office Audit Committee Member None

In-gyu Kim (1950.02) Chair of Korean War Memorial Foundation Audit Committee Member None

Item The end of the 23rd term (current) The end of the 22nd term (previous)

Assets 　

Current Assets 340,325,172,072 　 352,607,396,393

Cash and Cash Equivalent 29,897,203,080 　 197,578,100,259 　

Short-term Financial Product 147,587,511,906 　 22,680,000,000 　Financial Assets at Fair Value Through Profit or Loss 2,066,214,617 　 2,000,339,726 　Accounts Receivables and Other Receivables 115,731,038,277 　 91,714,550,083 　

Inventory Assets 35,603,793,478 　 31,131,061,262 　

Others Financial Assets - 　 1,534,500,000 　

Stand alone financial statements

23rd : As of Dec. 31, 201622nd : As of Dec. 31, 2015

(Unit : Won) CJ O Shopping

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Others 9,439,410,714 　 5,968,845,063 　

Non-Currents Assets 　 771,189,185,079 　 823,618,150,677

Long-term Financial Product 4,225,988,094 　 1,413,500,000 　Available-for-Sale Financial Assets 119,821,180,205 　 125,531,302,404 　

Investment in Subsidiaries 434,456,197,179 　 444,580,033,723 　Investment in Affiliated Companies 16,075,814,317 　 16,954,214,317 　

Investment in Joint Companies 53,553,704,845 　 96,902,361,166 　

Tangible Assets 104,540,236,180 　 105,268,024,904 　

Intangible Assets 35,190,112,629 　 30,968,360,504 　

Others Financial Assets 1,159,325,969 　 1,786,514,119 　

Others 140,298,333 　 213,839,540 　

Deferred Corporate Tax Assets 2,026,327,328 　 - 　

Total Assets 　 1,111,514,357,151 　 1,176,225,547,070

Liabilities 　　　　

Current Liabilities 　 420,886,861,201 　 435,013,131,156 Accounts Payable & Other Payables 119,968,605,523 　 103,573,073,988 　

Short-term Borrowings - 　 6,966,438,511 　

Current portion of bonds 49,988,216,817 　 109,926,831,055 　Current Corporate Tax Liabilities 21,186,343,298 　 15,747,375,054 　

Estimated Liabilities 4,139,889,967 　 5,427,205,883 　

Deferred Profits 1,906,677,333 　 1,270,362,747 　

Others Fiancial Assets 70,000,000 　 - 　

Others 223,627,128,263 　 192,101,843,918 　

Non-Current Liabilities 　 7,492,367,012 　 59,776,131,911

Bonds - 　 49,922,026,608 　

Defined BenefitLiabilities 7,492,367,012 　 8,676,970,224 　

Deferred Corporate Tax Liabilities - 　 1,177,135,079 　

Total Liabilities 　 428,379,228,213 　 494,789,263,067

Shareholder's epuity 　　　　

Stock capital 31,077,590,000 　 31,077,590,000 　

Capital surpus 66,353,502,058 　 66,353,502,058 　

Retained earnings 564,136,496,217 　 563,585,106,226 　

Others 21,567,540,663 　 20,420,085,719 　

Total Shareholder's epuity 　 683,135,128,938 　 681,436,284,003

Total Liabilities & Shareholder's epuity 　 1,111,514,357,151 　 1,176,225,547,070



20

Stand alone Income Statement

23rd: From Jan. 1, 2016 to Dec. 31, 201622nd: From Jan. 1, 2015 to Dec. 31, 2015

CJ O Shopping (Unit : Won)

Item 23rd (Current) 22nd (Previous)

Operating Revenue 　 1,095,911,239,675 　 1,119,374,858,317

Operating Expense 　 950,981,861,466 　 1,005,263,718,770

Cost of Employee Pay 120,401,962,810 　 121,022,904,747 　

Depreciation Cost 7,177,998,298 　 7,852,259,627 　

Amortization Expenses on Intangible Assets 6,033,592,275 　 6,511,862,096 　

Outsourcing Costs 232,121,961,065 　 232,563,926,396 　

Product Costs 124,561,924,166 　 157,638,467,487 　

Other Operating Costs 460,684,422,852 　 479,674,298,417 　

Operating Profit 　 144,929,378,209 　 114,111,139,547

Financial Profit 10,725,120,889 　 10,206,763,884 　

Financial Cost (4,115,675,700) 　 (6,065,318,676) 　

Other Non-Operating Profits 245,021,330 　 958,934,098 　

Other Non-Operating Costs (106,981,174,294) 　 (32,674,181,986) 　

Earnings Before Taxes 　 44,802,670,434 　 86,537,336,867

Costs of Corporate Tax 28,721,065,238 　 26,239,859,213 　

Net Profit 　 16,081,605,196 　 60,297,477,654

Other Comprehensive Profit & Loss 　 690,234,739 　 (6,580,035,357)

Items That May Be Subsequently Reclassified to the Current Profit & Loss (457,220,205) 　 (1,022,633,198) 　

Remeasurements of the Net Defined Benefit Liability (603,192,883) 　 (1,349,120,314) 　

Corporate Tax Pertaining to Items That May Not Be Reclassified into the Current Profit & Loss

145,972,678 　 326,487,116 　

Items That May Be Subsequently Reclassified into the Current Profit & Loss

1,147,454,944 　 (5,557,402,159) 　

Unrealized gains & losses on valuation of available-for-sale financial assets 1,513,792,801 　 (7,331,665,118) 　

Corporate Tax Pertaining to Items That May Be Reclassified into the Current Profit & Loss

(366,337,857) 　 1,774,262,959 　

Comprehensive Current Profit 　 16,771,839,935 　 53,717,442,297

Earnings Per Share (Unit: Won) 　　　　

Net Earnings Per Basic Share 　 2,667 　 10,013

Diluted Net Earnings Per Share 　 2,667 　 10,013

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Statement of Appropriation of Retained Earnings (Draft)

Consolidated financial statements

23rd: From Jan. 1, 2016 to Dec. 31, 2016/Expected Date of Disposal: Mar. 24, 201722nd: From Jan. 1, 2015 to Dec. 31, 2015/Date of Confirmed Disposal: Mar. 18, 2016



Ⅰ. Surplus Appropriation 　 538,856,750,867 　 538,326,493,376

1. Previous Deferred Surplus Appropriation 523,232,365,876 　 479,051,648,920 　

2. Net Profit 16,081,605,196 　 60,297,477,654 　

3. Remeasurements of the Net Defined Benefit Liability (457,220,205) 　 (1,022,633,198) 　

Ⅱ. Appropriations of Retained Earnings 15,072,995,000 　 15,094,127,500

1. Profit Reserve - 　 21,132,500 　

2. Dividend 15,072,995,000 　 15,072,995,000 　

Cash Dividend (Dividend Per Ordinary (Rate)):

15,072,995,000 　 15,072,995,000 　 Current : 2,500Won(50%),

Previous : 2,500Won(50%)

Ⅲ. Subsequent Deferred Surplus Appropriation 　 523,783,755,867 　 523,232,365,876

23rd: As of Dec. 31, 2016 22nd: As of Dec. 31, 2015



Assets 　　　　

Current Assets 　 689,027,934,725 　 758,534,402,154

Cash and Cash Equivalent 103,226,351,205 　 325,848,637,455 　

Short-term Financial Product 147,587,511,906 　 22,730,000,000 　Financial Assets at Fair Value Through Profit or Loss 66,000,919 　 - 　Accounts Receivables and Other Receivables 353,924,772,597 　 320,061,700,241 　

Inventory Assets 62,168,236,753 　 61,572,877,092 　

Current Corporate Tax Assets - 　 34,635,219 　


Others 19,535,415,710 　 18,477,857,910 　

Non-Current Assets 　 2,064,565,569,206 　 2,229,698,002,209

Long-term Financial Product 4,228,988,104 　 2,322,024,526 　Long-term Accounts Receivables and Other Receivables 19,599,489,821 　 34,671,336,739 　


22 Available-for-SaleFinancial Assets 121,915,498,279 　 127,317,136,506 　

Deferred income tax Assets 23,093,879,702 　 19,256,274,744 　

Investment in Associates 83,027,772,249 　 68,819,009,029 　

Investment in Subsidiaries 28,978,321,633 　 28,080,843,008 　

Tangible Assets 814,913,835,302 　 859,381,263,799 　

Investment Property 9,863,651,564 　 16,749,837,711 　

Business Rights 708,344,578,781 　 787,047,335,059 　

Intangible Assets 225,566,535,141 　 261,194,668,095 　


Others 8,010,276,864 　 5,955,554,844 　

Total Assets 　 2,753,593,503,931 　 2,988,232,404,363

Liabilities 　　　　

Current Liabilities 　 1,017,274,895,867 　 988,400,541,102 Accounts Payable & Other Payables 317,359,746,275 　 285,073,540,563 　

Short-term Borrowings 157,000,000,000 　 23,922,590,087 　Current Portion of Long-term Liabilities 168,152,416,913 　 215,765,393,778 　

Current portion of bonds 99,975,017,567 　 209,878,262,764 　

Current Tax Liabilities 21,315,167,855 　 24,350,791,168 　

Estimated Liabilities 5,217,606,603 　 6,652,514,170 　

Deferred Revenue 1,906,677,333 　 2,148,733,637 　


Others 242,705,115,503 　 218,601,436,239 　

Non-Current Liabilities 　 373,429,983,628 　 649,702,418,952 Long-term Trade Payable and Other Payables 1,475,973,795 　 1,206,609,189 　

Long-term Borrowings 1,991,620,000 　 168,991,708,089 　

Corporate Bonds 299,505,586,025 　 399,122,494,207 　Net Defined Benefit Liabilities 16,048,022,535 　 17,808,093,808 　

Deferred Tax Liabilities 54,050,635,585 　 59,710,669,089 　

Others Financial Assets 358,145,688 　 2,862,844,570 　

Total Liabilities 　 1,390,704,879,495 　 1,638,102,960,054

Shareholder's epuity 　　　　

Capital Reverting to the Owner of a Controlling Company 　 917,384,053,922 　 911,871,512,160

Stock capital 31,077,590,000 　 31,077,590,000 　

Capital surpus 72,555,614,522 　 73,557,728,710 　

Retained earnings 811,867,419,363 　 805,413,658,945 　

Others 1,883,430,037 　 1,822,534,505 　

Non-controlling Stake 　 445,504,570,514 　 438,257,932,149

Total Shareholder's epuity 　 1,362,888,624,436 　 1,350,129,444,309 Total Liabilities & Shareholder's epuity 　 2,753,593,503,931 　 2,988,232,404,363

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Consolidated Income Statement

23rd: As of Dec. 31, 2016 22nd: As of Dec. 31, 2015



Sales 　 2,208,596,188,143 　 2,308,605,389,638

Cost of Sales 　 999,565,154,741 　 1,071,969,495,253

Gross Profit of Sales 　 1,209,031,033,402 　 1,236,635,894,385 Selling and AdministrativeExpenses 1,030,150,876,923 　 1,026,981,176,067 　

Operating Profit 　 178,880,156,479 　 209,654,718,318

Financial Profit 13,157,129,537 　 14,058,086,303 　

Financial Cost 27,918,921,065 　 35,951,930,349 　Investment Stocks Accounted inEquity Method (Loss) (11,131,949,400) 　 595,048,219 　

Other Non-Operating Profit 12,416,824,042 　 11,654,101,740 　

Other Non-Operating Cost 103,267,953,069 　 37,689,296,552 　

Earnings Before Taxes 　 62,135,286,524 　 162,320,727,679

Cost of Corporate Tax 29,552,180,851 　 50,302,188,913 　

Net Profit 　 32,583,105,673 　 112,018,538,766

Other Comprehensive Income 　 (1,994,005,352) 　 (10,660,975,380)

Items That May Be Subsequently Reclassified to the Current Profit & Loss (2,275,449,523) 　 (4,669,016,211) 　

Re-measurements of NetDefined Benefit (2,964,413,952) 　 (6,371,510,190) 　

Items That Will Not Be Reclassified to Profit or Loss 688,964,429 　 1,702,493,979 　

Items Reclassified asCurrent Profit or Loss 281,444,171 　 (5,991,959,169) 　

Unrealized gains & losses on valuation of available-for-sale financial assets 1,523,712,893 　 (7,461,818,620) 　Unrealized translation gains & losses on foreign operation (322,908,339) 　 (827,474,102) 　Unrealized gains & losses on valuation of cash flow hedge 716,969,383 　 1,662,806,867 　

Capital Change in Equity Method (1,131,453,316) 　 (721,183,106) 　

Corporate Tax Pertaining to Items that may be reclassified to the current profit or loss

(504,876,450) 　 1,355,709,792 　

Total ComprehensiveCurrent Profit 　 30,589,100,321 　 101,357,563,386

Attributable Net Profit 　 32,583,105,673 　 112,018,538,766

Owner of a Controlling Company 　 23,428,704,470 　 84,740,966,063

Non-Controlling Interest 　 9,154,401,203 　 27,277,572,703 Attributable Comprehensive Income 　 30,589,100,321 　 101,357,563,386

Owner of a Controlling Company 　 21,587,650,950 　 75,233,831,088

Non-Controlling Interest 　 9,001,449,371 　 26,123,732,298

Earning Per Share 　　　　

Net Profit Per Basic Share 　 3,886 　 14,073

Diluted Net Profit Per Share 　 3,886 　 14,073


24


The Current State of Creditors and Investment

• The current state of major creditors(As of Dec. 31, 2016, Unit:bil.won, Share, %)

Creditor name Credit The Number of Shares Rate of Shareholding Remarks

CJ Korea Express Corp. 9.3 - - Transport Service Cost

CJ Olive Networks Corp. 8.8 - - System DevelopmentService Cost

CJ Telenics Corp. 3.6 - - Telephone Consulting Service Cost

• The Current State of Investment in the Company, Subsidiaries and Other Companies

(As of Dec. 31, 2016, Unit:bil.won, Share, %)

Company nameInvestment &

Shareholding Company

Detailed Investment

The Number of Shares Rate of Shareholding

New Business Investment Partnership No. 13 TW CJ O Shopping Corp. - 45.00

SMB Coexistence Investment Partnership CJ O Shopping Corp. - 95.00

CJ Hello Vision Corp. CJ O Shopping Corp. 4,175,628 53.92

CJ Telenix Corp. CJ O Shopping Corp. 70,000 100.00

Super Race Corp. CJ O Shopping Corp. 35,880 98.79

CJ Worldis Corp. CJ O Shopping Corp. 800,000 49.99

Dong Bang CJ Co., Ltd CJ O Shopping Corp. - 15.84

CMI Holdings Ltd. CJ O Shopping Corp. 7,097,251 100.00

SHOP CJ Network Private Ltd. CJ O Shopping Corp. 22,916,455 50.00

CJ PRIME SHOPPING INC. CJ O Shopping Corp. 894,580 99.78

SCJ TV Shopping Company Ltd. CJ O Shopping Corp. - 50.00

GMM CJ O Shopping Company Ltd. CJ O Shopping Corp. - 49.00

CJ Mediasa Shopping & Retail Co., Ltd. CJ O Shopping Corp. 2,850,000 50.00

CJ Mediasa Television Broadcasting Co., Ltd. CJ O Shopping Corp. 450,000 50.00

MP CJ O SHOPPING SDN. BHD. CJ O Shopping Corp. 2,107,000 49.00

Shanghai Baozun-CJ E-Commerce Co., Ltd. CMI Holdings Ltd. - 49.00

ACJ O Shopping Corporation CJ O Shopping Corp. 10,250,000 50.00

Televisa CJ Grand, S.A. DE C.V. CJ O Shopping Corp. 10,875 50.00

CJ Vietnam Co., Ltd CJ O Shopping Corp. - 10.00

TianTian CJ Homeshopping Co., Ltd CMI Holdings Ltd. - 44.00

SMC-CJ O Shopping Corp.. CMI Holdings Ltd. - 23.00

Oshishang Trading Co., Ltd. CMI Holdings Ltd. - 44.46

CJ IMC Co., Ltd. CMI Holdings Ltd. - 100.00

CJ IMC Vietnam CMI Holdings Ltd. - 100.00

CJ IMC Thailand CMI Holdings Ltd. - 100.00

CJ IMC S.A. DE C.V. CMI Holdings Ltd. 10 99.00

CJ IMC MALAYSIA SDN.BHD. CMI Holdings Ltd. - 100.00

Cable TV VOD Corp.( former Home Choice corp.) CJ Hello Vision Corp. 28,400 17.75

Highway Solar Corp. CJ Hello Vision Corp. 9,450 21.00

MJ Cine Corp. CJ Hello Vision Corp. 18,000 30.00

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Main Financial Ratio(Based on Stand alone financial statements)

• Stability Index

Distinction Formula 23rd 22nd Remarks

Current Ratio Current Assets/Current Liabilities 80.86% 81.06%

　Debt Ratio Total Debts/Shareholders' Equity 62.71% 72.61%

Dependence on Debt Debts/Total Assets 4.50% 14.18%

Interest Coverage Ratioagainst Operating Profit Operating Profits/Interest Expense 41.81times 22.81times

• Profitability Index


Operating Profit Ratio Operating Profits/Sales 13.22% 10.19%

　　　　

Ratio of Net Income to Sales Net Income/Sales 1.47% 5.39%

Return on Assets Net Income/Total Assets 1.45% 5.13%

Return on Equity Net Income/Equity Capital 2.35% 8.85%

• Growth & Activity Index


Sales Growth Rate (Current Sales/Previous Sales)-1 -2.10% -12.37%

Operating Profit Growth Rate

(Current Operating Profit/Previous Operating Profit)-1 27.01% -19.73%

Net Income Growth Rate(Net Income/Previous Net Income)-1 -73.33% -39.98%

Total AssetsGrowth Rate

(Total Assets at the End of Current Term /Total Assets at the End of Previous Term)-1

-5.50% -0.16%

Assets Turnover Sales/Average Total Assets 0.96times 0.95times


26

Main Financial Ratio(Based on consolidated financial statements)

• Stability Index


Current Ratio Current Assets/Current Liabilities 67.73% 76.74%

　Debt Ratio Total Debts/Shareholders' Equity 102.04% 121.33%

Dependence on Debt Debts/Total Assets 26.39% 34.06%

Interest Coverage Ratioagainst Operating Profit Operating Profits/Interest Expense 6.95times 6.06times

• Profitability Index


Operating Profit Ratio Operating Profits/Sales 8.10% 9.08%

　　　　

Ratio of Net Income to Sales Net Income/Sales 1.48% 4.85%

Return on Assets Net Income/Total Assets 1.18% 3.75%

Return on Equity Net Income/Equity Capital 2.39% 8.30%

• Growth & Activity Index


Sales Growth Rate (Current Sales/Previous Sales)-1 -4.33% -11.37%

Operating Profit Growth Rate

(Current Operating Profit/Previous Operating Profit)-1 -14.68% -10.57%

Net Income Growth Rate(Net Income/Previous Net Income)-1 -70.91% 5.89%

Total AssetsGrowth Rate

(Total Assets at the End of Current Term /Total Assets at the End of Previous Term)-1

-7.85% -5.25%

Assets Turnover Sales/Average Total Assets 0.77times 0.75times

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An Audit Report by Audit Committee

To shareholders and the board of directors of CJ O Shopping

The audit committee audited accounting and business of CJ O Shopping in the 23rd fiscal year (from January 1,

2016 to December 31, 2016) and reports the result as follows.

1. Overview of a method of audit

It examined the accounting ledger and related documents for the purpose of accounting audit, reviewed financial statements, consolidated financial statements and supplementary schedules and applied comparison, due diligence, observation,

confirmation and other appropriate audit procedures if it is deemed necessary.

It attended the board of directors’meetings and other important meetings for the purpose of audit, received reports from directors on business activities, examined documents related to significant projects and thoroughly inspected the contents through the use of appropriate methods.

2. Matters related to statement of financial position, consolidated statement of financial position, comprehensive income statement, comprehensive income statement and others

Statement of financial position, consolidated statement of financial position, comprehensive income statement and comprehensive income statement properly indicate financial status and managerial achievements of the company in accordance with laws and regulations and the articles of association.

3. Matters related to statement of appropriation of retained earnings (draft)

Statement of appropriation of retained earnings (draft) was established in consideration of financial status and other circumstances

of the company in accordance with laws and regulations and the articles of association.

4. Matters related to an annual report

An annual report properly indicates corporate situations in accordance with laws and regulations and the articles of association.

Jae-cheon Kim, Chairman of Audit Committee

Mar. 3, 2017CJ O Shopping


28

Audit Report by an Outside Auditor


Dear shareholders and the Board of Directors of CJ O Shopping,

We audited the separately attached consolidated financial statement of CJ O Shopping and its subsidiaries. The consolidated financial statement consists of the present consolidated statement of financial position from December 31, 2016 to December 31, 2015, consolidated statement of comprehensive income, consolidated statement of changes in shareholders’ equity and consolidated cash flow statement, a summary of significant accounting policies, and other descriptive information.

The Management’s Responsibilities for Consolidated Financial Statements

The Management is responsible for establishing consolidated financial statements and fairly indicating the contents in accordance

with K-IFRS (International Financial Reporting Standards) and takes responsibility for internal control required to create the

consolidated financial statements without distortion on account of frauds or error.

Responsibility of the Auditor

Our responsibility is to express opinions on the consolidated financial statement based on the audit conducted by us. We

conducted the audit in accordance with K-IFRS. The standards require us to comply with ethical requirements and to confirm that

there are no distortions.

The audit includes implementation of procedures to acquire the evidence on the amounts stated, as well as public notification, on

the consolidated financial statement. Selection of the procedures varies in accordance with auditors’ judgment in terms of

evaluation of the risks associated with indication of significant distortions in the consolidated financial statement on account of

fraud or error. At the time of assessing the risks, the auditors take internal control related to establishment and fair indication of the

consolidated financial statement into account for the purpose of designing the appropriate procedures for audit. However, it is not

aim to express opinions on effectiveness of the internal control. The audit also includes compliance with accounting policies that

the management applied to establish the consolidated financial statement and assessment on rationality of accounting estimates

generated by the management, in addition to evaluation on general indication of the consolidated financial statement.

We believe that the audit evidence we obtained is sufficient as a basis of our audit opinions.

Opinions of the Auditor

In our opinion, the consolidated financial statement fairly indicates the present financial status from December 31, 2016 to

December 31, 2015 and the financial achievements and cash flow during the same period are in accordance with K-IFRS,

as deemed relevant by us.

CEO Jong-ho Ham

Mar. 16, 201710, Gukjegeumyung-ro, Youngdeungpo-gu, Seoul

Deloitte Korea

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Corporate Data

Company Name : CJ O Shopping

HQ : 870-13, Gwacheondae-ro, Seocho-gu, Seoul

Logistics Center : 20, 47 beon-gil, Nongsim-ro,

Gunpo-si, Gyeonggi-do

CEO Name : Min-Heoi Heo

The Date of Foundation : December 1994

The Number of Employees : 942 persons (497 male employees & 445 female employees) (As of December 31, 2016)

Homepage : www.cjoshopping.com

CJ O Shopping Corp. (06761) CJ O Shopping, 870-13, Gwacheon-daero,Seocho-gu, Seoul, KoreaTEL 82-2-2107-0114www.CJmall.com

Documents

Global Merchandising Company - CJ O Shoppingcjoshopping.com/ir/data/Annual report_2016.pdfContents Profile Corporate Profile 03 Chronology 04 CEO Message 06 Financial Highlights 08