Investor Relations

1. Company overview

1-1. CJ Group

1-2. CJ Freshway

2. Food Material Distribution

2-1. Business environment

2-2. FMD core competency

2-3. Advanced business model

3. Catering Service

3-1. Business environment

3-2. FS core competency

4. Global Business

4-1. Global outposts

4-2. Global business structure

4-3. Current tasks

4-4. Mid/long-term strategy

Contents Page

2~3

4~7

8

9~11

12

13

14

15

16~17

18

19

20

21

22

Index

2

Four core business divisions of CJ group

1-1. CJ Group

CJ group is one of the largest conglomerate in Korea(annual revenue of W24tn in 2016), 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).

Revenue W7.5trn W4.3trn W7.7trn W3.9trn

(Total revenue of CJ group W24trn)

CJ Cheiljedang food stuff, processed food CJ Foodville franchise restaurant CJ Freshway Food materials distribution, Catering

CJ Cheiljedang lysine, nucleotides, feed&livestock CJ Healthcare pharmaceutical

CJ O shopping homeshopping CJ Korea express logistics, parcel service CJ Olive young Health & beauty

CJ E&M broadcast, movie, music, musical, etc CJ CGV movie theater CJ Hellovision cable TV

Company overview

3

Synergy amongst affiliates

Restaurant & franchise co.

No.1 franchise company with 2,159 restaurants

(fine dining, bakery, coffee, etc.)

Food material distribution & catering service

No.1 food material distributor Sourcing and distribution Catering service

No.1 Food ingredient & Processed food maker

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.

Supply of competitive processed food

Raw materials 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

Wholesaler/ Retailer

Franchise

Restaurant

Catering

Fertilizer/feed

Seeds Hotel

Maker

Manufacturer

Under consideration

Food & Food Service value chain model

Company overview 1-1. CJ Group

4

Foreign investors 1.4%

Domestic Institutions

24.1%

397

318

501

987

463

12.55 14.87 16.29

24.74 24.10

2.63 0.57 1.81 1.91 1.44

2012 2013 2014 2015 2016

Market cap

Share of institutional investors

Share of foreign investors

1-2. CJ Freshway

[FY 2016]

Company overview

CJ Corp + affiliated person

58.7%

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.

Shareholding structure Market cap

5

History

1988. 1 Founded Samil agriculture & marine

1996. 5 Incorporated into CJ Corp (ex-CJCJ)

1999. 1 Launched food material distribution business

2000. 9 Launched catering business

2000.11 Launched PB brand for food material<it`s well>

2001. 7 Listed KOSDAQ market

2005. 7 Opened service academy and culinary education center

2005. 1 Acquired ISO 22000 certificate

2007. 1 Acquired a certificate of HCCP of Hospital for the first time in Korea

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

2008. 3 Company renamed to “CJ Freshway”

2009. 8 Designated as a food safety inspection agency by KFDA

2010. 7 Opened the largest low-temperature logistics center of Korea

2012. 4 Launched PB brand for primary food, ‘FRESHWAY’

2012. 5 Founded a distribution company in China(CJFW Qingdao corp)

2013. 7 Founded a distribution company in Vietnam(freshway Vietnam)

2016. 11 Established JV company with Younhui in China

- CJ Freshway Yonghui(Shanghai) Trade

2016. 12 Songlim food(sauce & seasoning manufacturer) Acquisition

Company overview 1-2. CJ Freshway

6

Sales breakdown

Distribution 83.2%

Food Service 13.6%

Overseas& others 3.2%

0.80

1.35

1.57 1.61 1.53

1.75

1.94

2010 2011 2012 2013 2014 2015 2016

Food material distribution(Wtn)

0.13 0.15

0.17 0.20

0.22

0.27

0.32

2010 2011 2012 2013 2014 2015 2016

Food service(Wtn)

CAGR 16%

CAGR 15.9%

Comprised of two main businesses, Food material distribution(FMD) and Food service(FS), make-up majority of its sales and has shown strong growth.

Sales Mix [FY 2016]

Business model

Franchise

Restaurant

Manufacturer

Catering

Hotel

Manufacturer

Producer

Global Packer

① Food Material distribution ② Food Service

Office

Factories

Hospital

University

Leisure/etc.

Company overview 1-2. CJ Freshway

7

102.0

160.3 187.3 187.7 179.5

207.2 232.8

2010 2011 2012 2013 2014 2015 2016

Revenue(W bn)

CAGR% 14.7%

0.9

2.5 2.7

0.8

2.7 3.2

2.1

0.9% 1.6% 1.4%

0.5%

1.5% 1.5% 0.9%

2010 2011 2012 2013 2014 2015 2016

Operating Profit(W bn) OP

OP margin

1.94

0.81 0.61 0.52 0.49

[FY 2016]

Company overview 1-2. CJ Freshway

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 conditions, often challenging through worst down-cycles.

Revenue has grown at CAGR of 14.7% with establishment of JVs(FreshOne) and enhanced sourcing ability within CJ group

Fluctuation in OPm caused by external events in the market

Company ‘A’

‘B’ ‘C’ ‘D’

Revenue comparison with competitors CJ Freshway Earnings

(Unit: W tn)

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

8

Food material Distribution

9

2-1. Business environment

Korean food distribution market size & channel mix

46.4 48.3 49.9 51.2 52.8 54.4 55.9 57.6

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

19.5

Small Medium

CAGR 3.1%

ML Chain Catering 2)

7.5

8.2

13.5

8.8

Market size of restaurant food material W 29.2tn (51%)

Wholesale & factory

Domestic FMD(food material distribution) 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%

(W tn)

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

10

2-1. Business environment

7.4% 8.5% 8.2% 9.1% 10.2% 11.6%

2011 2012 2013 2014 2015 2016

M/S trend of large corporations Breakdown of restaurant industry

CAGR

2.5%

33% 36% 38% 40% 46%

31% 31% 30% 30% 28%

35% 34% 32% 30% 26%

2013 2014 2015 2016 … 2020

Franchise

Middle &

large

Small

7.4%

1.0%

total

Enterprise

SME

▲2.1%

Domestic FMD market is still at its early phase of industrialization. However, recently, market is accelerating its industrialization/corporatization process as government policy and industry demand trend changes require stricter system.

Korea’s food material distribution market is fragmented as M/S of large corporate is only 11.6%

The gov’t policy is leading the industrialization and corporatization 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 @ CAGR of 7.4%, and small declines @ CAGR -2.1%

11

2-1. Business environment

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 2025 1998 2009 2016

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%

2016~2025

forecast1)

10.4

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

-2.7

Slow growth

(4%)

1990 2025 1998 2009 2016

10.2

12

Freshway(6) : Icheon(2), Suwon, Yangsan, Jangsung, Daegu FreshOne(12) : Kwangju, Namseoul, Daejen, YongIn, Namyangju, Daegu, Busan, Incheon, Cheongju, Gunsan, Mokpo, Jeonju

2-2. FMD Core competency

SCM – largest logistics Infrastructure

Diversification of Distribution Channel

Restaurant Catering Whole sales

Factory Others

Total revenue

Sourcing Status : Domestic W2.1tn(90%), Overseas W0.23tn(10%) 30,000SKU of B2B food products PB, global exclusive food products

Sourcing Competitiveness 1 2

3

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

W2.33tn

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 Company for 4 consecutive years

Top tier class of food safety infrastructure

[FY 2016]

Restaurant(including FreshOne), catering, wholesale/factory

: Freshway : FreshOne

13

2-3. Advanced business model

[AS-WAS] [AS-IS]

B2B Channel(Ho∙Re∙Ca∙∙∙)

Small Distributors

FreshOne

CJ Freshway

A

A B B C C D D E

E

F

F …

Food safety, SCM Infra

Producer Global Packer

Manufacturers/ Wholesalers

Producer Global Packer

Manufacturers/ Wholesalers

CJ Freshway

Agent(C)

Agent(b)

B2B Channel(Ho∙Re∙Ca∙∙∙)

Inefficient distribution structures resort to additional cost to end-users

Cost reduction achieved through integration of distribution structure with advanced infrastructure

One-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.

Agent(a)

Procurement integration

⇒ Bargaining power

14

Catering Service

15

3-1. Business environment

9.1 9.3 9.5 10.0 10.7

4.0 4.2 4.3 4.8

5.3

14~20 CAGR

5.0%

16.0

14.8 13.4 13.1 12.7

CAGR 3.3%

2.7%

2020(F) 2018(F) 2016 2015 2014

(30%)

(70%)

(33%)

Source : Bank of Korea, Statistics Kore, Internal Interview etc.

1) Assuming that middle/high school and military cafeteria maintained In-house catering service

Wellstory

26.0%

Ourhome

21.2% Hyundai

green food

15.2%

ECMD

10.3%

Shinsege

food

6.9%

Hanhwa

5.9%

others

7.2%

[FY 2016]

… …

(67%)

CJ Freshway 7.3%

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

Domestic catering market size & channel mix M/S

Outsourcing (%)

In-house (%)

Domestic catering outsourcing market, already consolidated, is fiercely competed by conglomerates.

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

Domestic catering outsourcing market to grow at CAGR of 3.3% until 2020.

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

16

CJ Freshway’s expansion lies with its customizable service, and indisputable top position in specialty areas.

2011 2012 2013 2014 2015 2016

COGS(%) GPM(%)

Growth Profit Margin/rate of COGS Differentiated capability and service

Promote sustainable growth of profit margin through improving

COGS ratio and optimized operation

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

3-2. FS core competency

17

Remarkable new order momentum and competitive contract renewal rate resulted positive growth.

2011 2012 2013 2014 2015 2016

Amount M/S(%)

50

100

2012 2013 2014 2015 2016

Amount of new order exceed W50bn(expected annual revenue) since 2014

Amount of new order in 2016 recorded historical high winning over a quarter of new contracts available for the year

3-2. FS core competency

90.8%

Contract renewal rate maintained above 90% for consecutive 5 years, on the back of strong customer satisfaction level

Amount of new order Contract renewal rate(%)

(W100mil)

1)

18

Global Business

19

USA, L.A

Shanghai

Qingdao

Ho Chi Minh

Korea

CJ Freshway Qingdao Co.(2012)

/Food distribution

Shanghai Blue Wish(2012)/Catering

CJ Freshway Yonghui(Shanghai) Trade(2016)/Food distribution

CJ Freshway Vietnam(2013)

/Food distribution

Fides foods system/Catering

▶ China

▶ Vietnam

57 65

91

2014 2015 2016

CJ Freshway America(2013)

/food distribution

▶ USA

Overseas Revenue(Unit: Wbn)

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.

4-1. Global outposts

Overseas entities of CJ Freshway

20

Expansion strategy : Localization & utilization of global outposts

Further expansion of local sales channels

and development of global packer network

Global

sourcing

Overseas

Local

distribution

Freshway

Global food material trade business

based on sourcing networks

Localization of food material distribution in 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

4-2. Global business structure

21

China Vietnam USA

“Local distribution business based on YH captive channel”

“Triangle-trade network based on global sourcing power”

“No. 1 Trade Company between Asia-US”

Goal

Establishment 2012 2013 2013

Core competency

Global sourcing power (purchasing cost reduction, supply stabilization)

Training sales force to expand local food distribution

mollusk, mango, dragon fruit,

cashew nut

Imported fruit, beef

Canned tomato, Orange, grape

Basa, Mahi-mahi, Korean product

Canned Chinese food, cellophane noodle, frozen produce

whipping cream, imported fruit

Sourcing

distribution

Core strategy

JV1 Business stabilization and strengthened product line-up

Local product/distribution channel expansion

M&A Target research

Captive client coverage expansion

FC Channel(Golden gate) supply stabilization and expansion

Local distribution channel development

Korean fruit supply expansion

Captive client supply expansion(July 2016~)

Supply Asian fishery products in local market

Supply primary products to affiliates in China

Strengthen Sourcing power in America

Expansion fueled by strengthening global sourcing & local distribution Developing new local sales channel and global packer network

4-3. Current tasks

Investor Relations

E-mail: hl.ryu@cj.net suri.lim@cj.net Website: www.cjfreshway.com