Investor Relations

1. Company overview

1-1. CJ Group

1-2. CJ Freshway

2. Food Material Distribution

2-1. Business environment

2-2. Core competency and Infra

2-3. FreshOne Business

3. Catering Service

3-1. Business environment

3-2. Core competency

4. Sauce/ seasoning Manufacture

4-1. Business environment

4-2. Strategic value

5. Global Business

5-1. Global outposts

5-2. Global business structure

5-3. Mid/long-term strategy

Contents Page

1

2~3

4~7

8

9~11

12

13

14

15

16

17

18-19

20

21

22

23

24

Index

2

Business Division

1-1. CJ Group

CJ group is one of the largest conglomerate in Korea, specialized in Consumer and Culture business. CJ Freshway is a key player in the food & food service division along with CJCJ(097950 KS), CJ Foodville(U/L).

Sales mix 30% 18% 33% 17%

Company overview

CJ CheilJedangSpecializing in food, raw materials

CJ FoodvilleA global food/restaurant/dining co.

CJ FreshwayFood distribution&Catering service

CJ CheilJedangBio Div.

Global Top Leader for amino acid

CJ LogisticsLogistics, parcel service

CJ OliveNetworksOlive Young Div.

Korea’s No. 1 Health&Beauty Store

CJ ENM O Shopping Div.Home shopping channelprovider

CJ ENM E&M Div.Broadcasting, film, music, performance etc.

CJ CGVMovie theater, cultureplex

CJ HelloMedia platform, creating content value

CJ PowercastDigital broadcasting transmission carrier

1) Source: CJ Corp FY2017 annual report,Total revenue W27tn in 2017 including Synergy and Infra division W0.5tn(2% of total Rev.)

3

Restaurant & franchise co.

No.1 restaurant company with 2,325 restaurants: Bakery, coffee, family restaurant

Main brands: VIPS, Season’s table,Touslesjours, A towsome place etc.

Food distribution & food service co.

No.1 food material distributor

Sourcing and distribution Catering serviceCaptive client(CJCJ, CJ

Foodville) portion: 15% of total rev.

Supply of competitive

processed food

Raw materials &

Catering service

Captive client

Cost-effective raw materials

CJ has integrated value chain of food & food service industry. From raw material to restaurant brands, CJ maximizes synergy effect with affiliates by cost-effectiveness and product competitiveness.

M

Producer Sourcing

Distributing

Wholesale/Retailer

Franchise

Restaurant

Cateringfertilizer/feed

seeds

ManufactureMaker

Manufacturer

Under consideration

1-1. CJ Group

W128bn

W351bn W255bn

1) Source: CJ Freshway 2017 annual report

Company overview

1)

Processed food, Foodstuff manufacture co.

No.1 processed food maker in Korea

Main products -.Food material: sugar,

wheat flour, etc.-.Processed food: frozen food(dumplings ,pizza etc.), meat processed food(SPAM, bacon), HMR(Microwavable rice, soup/stew) etc.

4

Domestic

institution

19.2%

Forign

Investors

3.7%

Shareholding structure Market cap

317.9

500.8

986.5

463.0 472.5

14.9 16.3

24.620.2 19.2

0.61.8 1.9 1.4

3.7

2013 2014 2015 2016 2017

Market cap

Share of institutional

investorsShare of foreign

investors

1-2. CJ Freshway

CJ Corp(001040 KS) + special interest group holds 58.7% of CJ Freshway.Shareholder mix diversified in the recent years, as domestic institutions & NPS added their stake in the company. Most recently foreign funds have increased their holdings.

[FY 2017]

Company overview

(Unit:W bn, %)

CJ Corp+Affiliated

person58.6%

5

History

1-2. CJ Freshway - History

CJ Freshway, founded in 1988, is leading domestic food material distribution market and catering business with largest infrastructure and more than 20 years of experience

1988.10 Founded Samil agriculture & marine1996.05 Incorporated into CJ Corp (ex-CJCJ)1999.01 Launched food material distribution business2000.09 Launched catering business(Acquired from CJCJ), Renamed to 'CJ Foodsystem’2000.11 Launched PB brand for food material<it`s well>2001.07 Listed KOSDAQ market

2003.11 Carrying out HACCP certification for the first time in the industryOpened food safety center

2005.01 Acquired ISO 22000 certificate2007.01 Acquired a certificate of HCCP of Hospital for the first time in Korea(Severance hospital) 2008.03 Company renamed to ‘CJ Freshway’2009.08 Designated as a food safety inspection agency by KFDA

Opened ‘FreshOne’(JV)2010.07 Opened the largest low-temperature logistics center of Korea2012.01 Launched catering business in Vietnam for the first time in Korea2012.05 Founded a distribution company in China(CJFW Qingdao corp)2013.07 Founded a distribution company in Vietnam(Freshway Vietnam)2016.10 Signed MOU with ‘Goldengate’ the largest restaurant company in Vietnam2016.11 Established JV company with Younhui in China2016.12 Songlim food(sauce & seasoning manufacturer) Acquisition2017.02 Opened branch in Chile for the first time in Korea2018.02 Opened Vietnam logistic center

Company overview

6

1,452 1,698 1,667 1,565

1,792 2,004 2,119

1.4% 1.1%0.2%

1.1% 0.9% 0.5%1.1%

2011 2012 2013 2014 2015 2016 2017

Sales OPm(%)

Sales Mix[FY 2017]

1-2. CJ Freshway – Business model

Sales Contribution: FMD 84.6% FS14.5%Added manufacturing division by acquiring Songlim Food 4Q16

Sourcing

Manufacturer ProducerGlobal

Packer

DistributionOutlet

Restaurant Franchise

Catering Manufacture

Outlet

Operating

cafeteriaManufacture

Sauce, dressing,

seasoning, RTH,

flavored oil etc.

Outlet

Office

HospitalLeisureFactories

University∙∙∙

∙∙∙

- COGS : food

material, labor

(nutritionist, cook),

rent, utility cost etc.

* 2016년말 송림푸드 인수, 실적연결편입 1Q17 ~

Manufacturer

distributor

Franchise/

restaurant

B2C channel ∙∙∙

Ⅰ. Food material distribution(FMD) Ⅱ. Food service Ⅲ. Sauce/ seasoning

Company overview

1) Source: FY 2017 annual report

1)

150 175210 230

280324

362

3.6% 4.4%2.6%

4.6% 5.6%3.4%

4.8%

2011 2012 2013 2014 2015 2016 2017

Sales OPm(%)

Food material distribution Food service

CAGR6.5%

CAGR15.8%

(Unit: W bn) (Unit: W bn)FS14.5%

Sauce/seasoning

0.9%

FMD84.6%

7

2.1

1.1

0.7 0.6 0.6 0.5

1,603 1,873 1,877 1,795

2,072 2,328 2,504

2011 2012 2013 2014 2015 2016 2017

Revenue

Despite recent sluggish market condition, CJFW maintains its market dominance on the back of strong top-line growth. Effort to find working "Korean FMD model”, CJ FW spent years endeavoring fast changing market, often challenging through worst down-cycles.

Revenue comparison with competitors

CAGR%7.7%

CJ Freshway Earnings

25 27

8

27 32

21

44

1.6% 1.4%0.5%

1.5% 1.5%0.9%

1.8%

2011 2012 2013 2014 2015 2016 2017

Operating profitOP

OPm

Revenue has grown at CAGR of 7.7% with establishment of JVs(FreshOne) and enhanced sourcing ability within CJ group

Fluctuation in OP margin caused by external events in the market

CJ Freshway is an unrivaled domestic food material distributor with the largest economy of scale.

‘A’

‘B’‘C’

[FY 2017]

1-2. CJ Freshway Company overview

‘D’ ‘E’

(Unit: W bn) (Unit: W tn)

(Unit: W bn)

8

Food material Distribution(FMD)

9

Korean food distribution market size & channel mix

Source : Bank of Korea, Statistics Korea Wholesales & retail service Index, Internal interview etc.1) Scale of restaurants : Mid-large(Yearly revenue more than W0.3bn), Mid-small(less than W0.3bn)2) Market includes manufacturing sites, office, hospital, military, university and etc

46.4 48.3 49.9 51.2 52.8 54.4 55.9 57.6

2013 2014 2015 2016 2017 2018(F) 2019(F) 2020(F)

19.5

CAGR 3.1%

7.5

8.2

13.5

8.8

Market breakdown by size of restaurantW 29.2tn (51%)

Domestic FMD market to grow at the rate of 3.1% annually till 2020, reaching W58tn in size. Strong growth from domestic restaurant industry to push its proportion up to 51% Vs. wholesale 34%, and FS(Food Service) 15%

(Unit: W tn)

2-1. Business environment

SmallMedium 1)

ML Chain Catering 2)Wholesale & factory

10

2-1. Business environment

8.5% 8.2% 9.1% 10.2% 11.6% 12.7%

2012 2013 2014 2015 2016 2017

Enterprise SME

M/S trend of large corporations Breakdown of restaurant industryCAGR2.5%

33% 36% 38% 40%46%

31% 31% 30% 30%28%

35% 34% 32% 30% 26%

2013 2014 2015 2016 … 2020

7.4%

1.0%

Total

▲2.1%

Korea’s food material distribution market is still fragmented, large enterprises make up 12.7% of M/S

Gov’t policy changes are leading factors triggering industrialization of the market as it demands stricter : transaction transparency and quality control

Rising needs of corporate food distributor as restaurant industry grows

: Franchise to grow at CAGR of +7.4%, small restaurant declines at CAGR -2.1%

Domestic FMD market is still at its early phase of industrialization. However, recently, market consolidation/industrialization process has accelerated as consumer demand sophisticates, industry shifts gears to cope with the changes.

Source : Annual report from each company, Bank of Korea, Statistics Korea Wholesales & retail service Index, Internal interview etc.

Franchise

Mid&

large

Small

11

Residual income squeeze driven by weakening economy led eat-outers to be more prudent on their expenditures. To meet change in trend, restaurants soon turned to tighter budgeting which sparked fierce price competition between SMEs.

GDP growth rate Service industry GDP growth rate(%)

-5.5

1990 20251998 2009 2016

2018~2025Forcast1)

10.4

⇒ Entering into L shaped recession, unable to break above, sluggish growth rate to last in coming years

-2.7

1990 20251998 2009 2016

10.2

(Unit: %)(Unit: %)

2-1. Business environment

Slow growth(4%)

V shaped

Perk-up

L shaped

recession

1) 2012~2060 long-term financial prospects(National Assembly ), 2016~2020 : 3.4%, 2021~2025(F) : 3.0%

12

Freshway(6): Icheon(2), Suwon, Yangsan, Jangsung, Daegu

FreshOne(10), branches(7)- FreshOne(10)

: Kwangju, Namseoul, Daejeon, YongIn, Namyangju, Daegu, Busan, Incheon, Gunsan, Mokpo

2-2. Core competency

SCM – largest logistics Infrastructure

Diversification of Distribution Channel- Restaurant(including FreshOne),

catering, wholesale/factory

Restaurant Catering Wholesales Factory Others

Total salesW2.5tn

Sourcing status: domestic W2.18tn(87.4%), Overseas W0.31tn (12.6%)

30,000SKU of B2B food products PB, global exclusive food products

Sourcing Competitiveness - sourcing network

1 2

3

Market differentiation by core competency; 1) Global sourcing network, 2) SCM ability, 3) distribution channels, and 4) quality control infrastructure

4

Specialties in Food Safety: Designated food safety inspection centers

and food safety experts (total 60 specialists) Risk Management Activity

: systematic audit, on-site training programs Customer Satisfaction Activity

:VoC analysis→ understanding customer needs→ propose business insight → customer satisfaction

▪ Designated as the Best Food Safety Companyfor 4 consecutive years

Top tier class of food safety infra

[FY 2017]

: FW: FO

13

2-3. FreshOne BusinessOne-stop service to cut out unnecessary distribution stages by expanding direct transactions (CJFW⇌B2B client), strengthening bargaining power through integration/consolidation of distribution channel → Result : simplified distribution structure & gain cost competitiveness.

• Invested & developed infrastructure

• Food safety and SCM competency

• Product competitiveness

• Sales network in local area

• Participating as shareholders

SMEs

• Win-win model between Conglomerate and SMEs• Simplified VC, industrialization, food safety• Acquire bargaining power

Distribution structure

Business overview Current status

Local(Maker/Vendor)

CJ FW

Small/ middle size B2B food distributor

B2Bdirect channel

Traditional SMEs

Wholesaler, Food maker

• FreshOne(10), FO branches(7)

Chuncheon

DongseoulIncheon

NamseoulGangnam

Hanam

Jungbu

Jeonbuk

GwangjuMokpo

Daegu

Busan

Ulsan

FreshOneFO branches

Gyung-ju

Yangju-si

Pyeongtaek

Ilsan

14

Food service(FS)

15

Samsung

Wellstory

24.9%

LG

Ourhome

19.8%Hyundai

Greenfood

12.9%

ECMD

13.9%

Shinsegye

14.0%

Hanwha

6.1%

Others

0.7%

3-1. Business environment

Domestic market size & channel mix

9.1 9.3 9.5 10.0 10.7

4.0 4.2 4.34.8

5.3

‘14~’20CAGR

5.0%

16.0

14.813.413.1

12.7

CAGR 3.3%

2.7%

2020(F)2018(F)201620152014

(30%)

(70%)

(33%)

(67%)

Market share

Food Service(FS) market to grow at the rate of 3.3% annually till 2020 to W16.0tn. Outsourcing market leading the growth.

[FY 2017]

… …

(67%)

CJ Freshway7.7%

(Unit: W tn)

Outsourcing(%)

In-house(%)

Domestic FS outsourced market to grow at CAGR of 5% until 2020.

Recently, In-house operations are turning toward outsourcing as a solution to improve efficiency and quality

Domestic FS outsourcing market is already consolidated, M/S competed amongst conglomerates.

CJ FW continues to gain M/S by winning top tier contracts available and wielding its core competency in hospital and leisure channel

Source : Bank of Korea, Statistics Kore, Internal Interview etc.1) Assuming that middle/high school and military cafeteria maintained In-house catering service

16

CJ Freshway’s FS core competency lies with its customizable service, and indisputable top position in specialty areas. Remarkable new order momentum and competitive client retention rate yielded positive growth.

3-2. Core competency

Differentiated capability and service

95 96

96

91

96

2013 2014 2015 2016 2017

Winning contract(W bn) Retention rate(%)

Amount of new order 1)

Value of new order exceed W50bn(forecasted annual revenue) since 2014

Contract renewal rate maintained above 90%, on the back of strong customer satisfaction level

1) Total estimated to-be earned revenue over year contract

1 Hospital channel – menu expertise for the patients Customized menu to accommodate different types

of patients Meal services for foreign patients

2 Leisure channel – Customized service and menu Unrivaled M/S No.1 company with specific menu

for Leisure site Optimized staff management system for leisure

channels

2 Synergy within CJ group Restaurant/retail brands of sister companies.

- Café, restaurants, drugstores, etc CJ group events

- Foodville: FC brand menu day

- E&M: celebrity autograph event

1

2

3

17

Sauce/ seasoningmanufacture

18

Songlim Food’s sales grew at CAGR of 20.4% in the recent 5 yearsMarket growth driven by franchise restaurant and HMR market expansion

Domestic sauce/ seasoning market

0.87

1.10

1.58 1.72

2.27

0.10 0.17 0.21 0.27

0.60

2009 2011 2013 2015 - 2020(E)

Whole marketSum of Top 6 companies 2)

9.7%CAGR

17.1%

Stable market growth on the back of the growth of franchise restaurant and HMR market

(Unit: W tn)

12.8 14.6

18.3

21.6

25.1

1.0 1.2 2.1 2.8 3.4

13 14 15 16 17

(11.6%)(8.1%)

(7.5%)(6.4%)(10.8%)

2013 2014 2015 2016 2017

Rapid growth at the rate of CAGR 20.4% past 5 years

Factory #3 completed construction end of 1Q18

SalesOP(OPm)

(Unit: W bn)

Earnings trend

1) Acquisition at the end of 2016, Incorporated from 171Q

4-1. Business environment

19

Sauce/seasoning market growth driven by rising demand for HMR and related products, and development franchise restaurants

Franchise brand/ store trend 1) HMR Market trend 2)

Looking back at the growth of Japanese HMR market, there was close correlation with increase of 1 person household

- Domestic 1 person household ratio to increase from 27.1% (2015) →29.6% (2020)

HMR market competition to become fierce as companies try to be the first mover into the new market

% of one person household

23.5% 25.5% 27.5% 29.5%

0.81.0

1.3

2.3

4.0

6.3Correlation(R2) 0.99btw one person household and HMR market

2010 20122014

2018(E)

2020(E)

2016(E)

Fueled by dampening economy, many retirees are pushed to build post-retirement income as a franchisee

- Franchisee numbers has risen from 76,138 (2012) to 106,890 (2016) at a whooping rate of 10.0% CAGR2)

Increase in the number of franchise brands(`12-`16 CAGR 15.6%) brought needs for differentiation which raised importance of sauce and seasoning

1) FTC(fair trade committee statistics 2) News media report on franchises

12~16CAGR

10.2%

15.6%

72,90384,046

88,95399,544

106,890

2,246 2,623 3,142 3,587 4,017

2012 2013 2014 2015 2016

# of franchisee # of FC brand

4-1. Business environment

20

To add value to current business model with both captives & non-captives, and to build foothold in the new fast growing market

Strategical Values

Add value on current restaurant deals

Sharing of client Pool

1

Creation of attractive PB products and buying power

4

3

Group synergy creation(ie. HMR sauce)

2

4-2. Strategical Value

[Major products]

[RTP* : Meal kit]

*Ready to prepare

21

Global Business

22

Recent expansion to China, Vietnam and the US market to add growth momentum mid/long-term. Collaboration between domestic and overseas market to provide regional expertise and synergy between outposts.

CJ Freshway Qingdao Co.(2012)/Food distribution

Shanghai Blue Wish(2012)/CateringCJ Freshway Yonghui(Shanghai)

Trade(2016)/Food distribution

CJ Freshway Vietnam(2013)/Food distribution

Fides foods system/Catering

▶ China

▶ Vietnam

CJ Freshway America(2013)/food distribution

▶ USA

Overseas entities

Overseas Revenue

(Unit: W bn)

5-1. Global outposts

35 36 51 65

13 16

23

34

8 13

16

31

2014 2015 2016 2017

57 65

91

130

China

Vietnam

USA

USA, L.A

Shanghai

Qingdao

Ho Chi Minh

Korea

23

Expansion strategy : Localization & utilization of global outposts

5-2. Global business structure

Further expansion of local sales channels

and development of global packer network

Global sourcing

Overseas Local

distribution

Global food material trade business

based on sourcing networks

Localization of food material distributionin emerging market

Utilizing global sourcing capability to its full extent,

Gained competitive edge over local competitors

Expansion of sourcing volume

As distribution channels diversify

Two-Track Mechanism

24

Expanding local distribution and purchase integration with overseas entities on the back of global sourcing competency and local partnership

Triangletrade

Sales chanelexpansion

Sourcinghub

Distribution hub

Califonia

USA

Chile

Guangzhou

Qingdao

Beijing

Ho Chi Minh

Indochina

Australia

Thailand

US-Asia No.1 Trade& Wholesale Company

Merchandising / trading post between US-ASIA based on strong sourcing networkHQ

Beef/ lamb etc.

Meat, fruit, dry fruit

Salmon/Mussel

etc.

Export to Korea and import core products

Exports of raw materialExpanding local distribution channel

Developed food distributor in Vietnam

Expanding local distribution channel based on core products

Integration of global sourcing and acquire bargaining power

Build co-work structure with overseas companies by sharing market intelligence

China

Vietnam

USA

Korea

5-3. Mid-long term strategy

High growth market, implementing market research and choosing

optimal business model Considering profitability,

industrialization level and volume of imported food

South-east Asia

Shanghai

Investor Relations

E-mail : hl.ryu@cj.net

Website : www.cjfreshway.com