lotte profile 2015 WAY

WayWe enrich people's lives by providing superior products

and services that our customers

love and trust

lotte profile 2015

prepared Way

lot

te pr

ofile 2014 Japanese

PrePared Way

LOTTE 3

Global Strategy 4

Message from the Chairman 6

Global Passion 10

Social Responsibility 18

Financial Information 21

PrePared World

Business Structure 33

Business Overview 34

Brand & Satisfaction 45

contents

LOTTE prOfiLE 2015

prEparEd Way

Waypreparedprepared

The company name ‘LOTTE’ originates from the name Charlotte in The Sorrows of Young Werther, by Goethe.

Like the heroine Charlotte, who was beloved by all, LOTTE seeks to earn the goodwill of customers around the world.

LOTTE is moving toward a better tomorrow.By taking on the challenge of ceaseless innovation,

LOTTE is poised to become one of Asia’s leading conglomerates.

LOTTE is moving toward a better tomorrow.By taking on the challenge of ceaseless innovation,

LOTTE is poised to become one of Asia’s leading conglomerates.

Mission

3prepared way LOT TE

LOTTE contributes to enriching life by providing products and services that are loved and trusted. Since LOTTE officially entered the food industry by founding LOTTE Confectionery in 1967, it has become a leader in the Korean tourism and retail industries by establishing some of Korea’s top hotels and department stores. LOTTE has since extended its reach into such key industries as petrochemicals and construction. LOTTE is positioning itself as one of Korea’s key conglomerates based on a wealth of diverse experiences and know-how. Furthermore, it strives to grow as a global conglomerate trusted by customers all over the world through continued efforts. LOTTE will continue to make customers’ lives richer with its strict quality control and differentiated services.

We enrich people’s lives by providing superior products and

services that our customers love and trust

R&D / support

finance

chemical / construction / manufacturing

tourism / service

food & beverage

retail

GLoBAL sTRATEGY

prepared way GLOBAL STRATEGY 5

United Kingdom

Russia

ChinaBelgium

Kazakhstan

Uzbekistan

Pakistan

IndiaMyanmar

Japan

Taiwan

VietnamPhilippines

MalaysiaSingapore

Indonesia

U.S.A.

With enhanced sales organizations and marketing strategies in China, Japan,

Vietnam, India, and Russia, LOTTE Confectionery and LOTTE Chilsung Beverage

are expanding in overseas markets. LOTTE Foods, through the merger of LOTTE

Samkang, LOTTE Ham, Pasteur, and LOTTE Fresh Delica, is promoting overseas

market expansion based on diverse product lines. Having enjoyed great success

in Vietnam, LOTTERIA has entered China, Indonesia, and Myanmar, while Angel-

in-us Coffee has also opened storefronts in China, Vietnam, and Indonesia.

LOTTE Department Store operates branches in Russia and China, has successfully

engaged Indonesia and Vietnam, and is expanding its scope of influence over the

world. LOTTE Mart also continues to increase the number of its stores in China,

Indonesia, and Vietnam. LOTTE’s overseas expansion in retail will be further

accelerated with LOTTE Super stores operating in China, LOTTE Cinema movie

theaters in Vietnam and China, and LOTTE Home Shopping operating in Taiwan,

China, and Vietnam.

Since opening the LOTTE Hotel Moscow in 2010, LOTTE Hotel is broadening

its overseas expansion scope to Vietnam, Guam, and China. LOTTE Duty Free is

operating shops in airports and in downtown areas in Indonesia, Singapore, and

Guam. LOTTE Asset Development currently oversees the development of a multi-

purpose shopping complex, the LOTTE World Chengdu project in Chengdu,

China, along with the operation of the LOTTE Center Hanoi project, a landmark

65-story building in Hanoi, Vietnam.

LOTTE Chemical has entered China as well as Southeast Asia, and is expanding

into overseas markets by successfully leading joint projects with global

companies. LOTTE E&C is also successfully operating diverse businesses in

the Middle East, Russia, Japan, China, and Vietnam, while LOTTE Aluminium is

expanding in overseas markets such as China and Indonesia as a global advanced

materials company.

LOTTE Capital is operating a Japanese branch as well as Chinese and Indonesian

subsidiaries, while LOTTE Insurance has laid the groundwork for entering overseas

markets with leading insurance companies in China, Russia, and Vietnam.

LOTTE R&D Center has been operating an R&D institute in China since 2009 to

achieve its goal of becoming the top food research institute in Asia, and the

LOTTE Strategy & Insight Center is providing customized solutions by analyzing

domestic and overseas markets. Furthermore, the LOTTE Scholarship Foundation

and LOTTE Welfare Foundation are carrying out international social contributions

in China, Vietnam, Russia, the Philippines, Indonesia, and Laos.

A brand that provides happiness to customers all over the world and builds trust with excellent products and services – this is what LOTTE aims to be. For over 40 years since its founding, LOTTE has successfully led a variety of business sectors and persistently developed differentiated capabilities. As part of its plans for the future, LOTTE aims to solidify its status as a global presence by establishing more developmental strategies. Even at this moment, LOTTE is making efforts to develop yet more excellent products and services reflecting the economic conditions and lifestyles of countries into which it has expanded, enhancing competitiveness in the global market. LOTTE will continue to expand in Asia, offering its superior benefits to customers there and worldwide.

LOTTE moves forward beyond Asia to the world.

Cambodia

LOTTE started out with the dream of becoming a company that contributes to the national and social

development. For over 40 years since the foundation of LOTTE Confectionery, LOTTE has grown stably

in various fields such as foods, retail, tourism, chemicals, construction, and finance, contributing to

Korea’s economic development and enriching customers’ lives. LOTTE continues to take on challenges

focused on stable internal management and the creation of new avenues of growth. LOTTE has

enhanced core capabilities in order to grow into a global conglomerate. With differentiated quality

and services that satisfy customers, LOTTE will expand its overseas businesses, which have been

concentrated on Vietnam, Russia, Indonesia, China, and India, and will grow to become a global

corporation representing Asia. Moreover, LOTTE will not neglect its social responsibilities. It

works to help those in need, to share with others, and to make the world a happier place. LOTTE

will be dedicated to gaining and keeping the respect and love of the general public, customers, and

stockholders, staying faithful to ethical management, win-win management, and green management.

All LOTTE employees will do their best to achieve these goals by taking on the challenges we face

with passion and dedication. LOTTE will grow into a key global conglomerate of Asia, with customers

around the world reaping the benefits. We look forward to your continued support as LOTTE makes a

powerful move towards becoming a truly global business group. Thank you.

1973 LOTTE Hotel Established

1974 LOTTE International Established

1974 Chilsung Han-mi Beverage Acquired (currently LOTTE Chilsung Beverage)

1977 Samkang Acquired (currently LOTTE Foods)

1978 LOTTE Ham & Milk Established

1967 LOTTE Confectionery Established

1968 LOTTE Aluminium Established

1980 Mature Growth 1990 renewed Growth

(currently LOTTE Foods)1978 Pyunghwa Construction Acquired (currently LOTTE E&C)

1979 Honam Petrochemical Acquired (currently LOTTE Chemical)

1979 LOTTERIA Established

1979 LOTTE Shopping Established

1960 Beginning 1970 Spring

1980 Korea Fujifilm Acquired

1982 Daehong Communications Established

1982 LOTTE Giants Established

1982 LOTTE Corporation Established

1983 LOTTE R&D Center Established

1983 LOTTE LHP Corporation Established

1985 LOTTE Canon Established (currently Canon Korea Business Solutions)

1987 LOTTE World Business Division Established

1994 Korea Seven Acquired

1995 LOTTE Capital Established

1996 LOTTE Logistics Established

1996 LOTTE Data Communications Company Established

1998 LOTTE Mart Established

1999 LOTTE Cinema Established

prepared way MESSAGE FROM THE CHAIRMAn 7

General Chairman Shin Kyuk-ho

We will continue

to grow and develop,

emerging as a key

global conglomerate

representing Asia

to the world.

prepared way MESSAGE FROM THE CHAIRMAn 9

2007 Woori Home Shopping Acquired (currently LOTTE Home Shopping)

2007 LOTTE JTB Established

2007 Chinese holding company Established

2007 LOTTE Asset Development Launched

2007 8 ‘Makro’ Stores Acquired in China

2008 19 ‘Makro’ Stores Acquired in Indonesia

2008 Daehan Fire & Marine Insurance Acquired (currently LOTTE Insurance)

2008 KI Bank Acquired (currently LOTTE PS net)

2008 Belgium’s ‘Guylian’ Acquired

2009 Doosan Liquor BG Acquired (currently LOTTE Liquor)

2000 LOTTE.com Established

2000 LOTTE Boulangerie Established

2000 LOTTE Super Established

2002 Dongyang Card Acquired (currently LOTTE Card)

2004 KP Chemical and KP Chemtech Acquired

2006 Daesan MMA Established (currently LOTTE MRC)

2010 ‘Buy the Way’ Acquired

2010 The UK’s ‘Artenius PTA/PET’ Acquired (currently LOTTE Chemical UK)

2010 Malaysia’s ‘Titan Chemical’ Acquired (currently LOTTE Chemical Titan)

2010 China’s ‘Lucky Pai’ Acquired

2010 The Philippines’ ‘Pepsi (PCPPI)’ Acquired

2010 Pasteur Dairy Company Acquired

2010 Pakistan’s ‘Kolson’ Acquired

2010 Hyundai Information Technology Acquired

2012 Hi-mart Acquired (currently LOTTE Hi-mart)

2013 Kazakhstan’s ‘Rakhat’ Acquired

2015 Established LOTTE Members

2015 KT rental Acquired (currently LOTTE rental)

We will emerge as a global business group.

We will offer satisfactionto customers worldwidewith premium productsand services.

Since its founding, LOTTE has constantly grown through the passion and efforts of the employees.

LOTTE has enriched the lives of customers as a driving force for national economic growth and is

bringing about constant innovation instead of resting on its present accomplishments. LOTTE

now aims towards becoming a global conglomerate that represents Asia. We are working hard to

foster skilled talent and secure differentiated technical capabilities to enhance our competitiveness

in each business field, and we are developing localized management by analyzing economic

conditions and customer lifestyles in overseas markets. We have dedicated ourselves to activities

that contribute to society to fulfill our corporate social responsibility. We are also making efforts

to achieve growth based on sincere, trusting partnerships while developing a range of support

activities for win-win growth. LOTTE is a valued name, beloved by customers worldwide. We

improve the quality of life of our customers with premium products and differentiated services,

enhancing corporate brand value through our many social contributions. We would like to thank all

of you who have continued to care about us and express interest in LOTTE’s efforts.

Chairman Shin Dong-bin

2000 Great Leap 2010 Global Leap

2009 Pakistan’s ‘PTA’ Acquired (currently LOTTE Chemical Pakistan)

2009 China’s ‘Times’ Acquired

LOTTE has pursued continuous innovation and growth since its founding in 1967. It has built up the group’s capabilities by expanding its businesses in various fields including food, retail, tourism, chemicals, construction, and finance. LOTTE is enhancing its brand value by modifying its current businesses and developing strategies for global initiatives to lead and manage business in Korea and beyond in a stable manner. Korea is the home base for the global LOTTE.

11

Passion is growing.

From Korea to China, Russia, Vietnam, Indonesia, Malaysia,

India, and Japan, a happy life begins with LOTTE.

Our dream begins. The satisfaction of customers worldwide begins.

>> Korea, the home base of global LOTTE.

Customer Focus • Originality • Partnership • Responsibility • Passion

Strengthening Core Competencies • On-site Management • Developing Talent • Enhancing Brand Value

Core Values Management Policies

LOTTE aims to evolve into a global conglomerate that

represents Asia. LOTTE will enhance competitiveness in core

businesses and continue to promote overseas businesses

based on our core values and management policies.

Korea >>

prepared way GLOBAL PASSIOn

the way to Growth

China>>

>> Russia

prepared way GLOBAL PASSIOn 13

LOTTE entered the Chinese market in the 1990s, successfully conducting business in many fields, including food, retail, petrochemicals, construction, manufacturing, and finance. LOTTE World Shenyang will be a new landmark in China with the participation of major LOTTE affiliates. Likewise, LOTTE World Chengdu, a shopping complex featuring a department store, supermarket, shopping mall, hotel, and cinema, is expected to be completed in 2019. Furthermore, LOTTE’s status in China will be enhanced with localized products and excellent services.

The outcome of our initiatives is greatest on the Asian continent.We offer our best to the most customers. >> China, a stage for achieving even bigger dreams.

Since the 1990s, LOTTE has prepared various expansion strategies with an eye towards the European market. Currently, LOTTE Department Store, LOTTE Hotel, LOTTE E&C, LOTTE Confectionery, and LOTTE Chilsung Beverage are conducting business in Russia. LOTTE will successfully engage in such major business areas as retail, tourism, food, and construction to solidify its status in the Russian market and enrich the lives of Russian customers.

Passion leads to new initiatives. We believe in our potential and welcome new opportunities. >> Russia, the doorwayto a continent of possibilities.

Since the opening of the first LOTTERIA in Vietnam in 1998, LOTTE Confectionery, LOTTE Mart, LOTTE Cinema, Angel-in-us Coffee, LOTTE Home Shopping, and LOTTE Hotel have entered the market and are highly appreciated by customers in such fields as food, retail, and tourism. In addition, LOTTE Asset Development is operating the LOTTE Center Hanoi, which has become a Hanoi landmark. LOTTE plans to promote more diverse businesses based on the success of its current businesses in Vietnam.

Vietnam >> >> Indonesia & Malaysia


LOTTE Mart acquired the large Indonesian Makro hypermarket chain in 2008, expanding stores using radical localization strategies. LOTTE Duty Free became the first in Korea to launch a duty-free shop overseas. LOTTE opened a shopping complex, LOTTE Shopping Avenue, in Indonesia in 2013, accompanied by the expansion of LOTTE Department Store, LOTTE Duty Free, LOTTERIA and Angel-in-us Coffee. LOTTE has also acquired the petrochemical company, Titan Chemical in Malaysia. LOTTE will take the initiative in opening new markets.

A dream of change. Endless opportunities unfold.

>> Indonesia and Malaysia, full of hope for tomorrow.

A new experience unfolds. Friendly service fills the heart.

>> Vietnam, where we experience the thrill of growing together.

Japan>>

India >>


LOTTE Confectionery has continued to expand its markets through the acquisition of a local confectionery company in 2004 and the establishment of Choco Pie production lines in 2010. LOTTE maintains continued growth thanks to these efforts, without resting on current successes. LOTTE will continue its growth by efficiently organizing its sales organizations in India and establishing marketing strategies that consider local customer needs.

LOTTE Co. Ltd., the parent company of today’s LOTTE Japan, was founded in 1948 as a general confectionery maker. Today it produces and exports over 200 types of products, making each and every one with dedication and delivering satisfaction to customers. Based on LOTTE Co. Ltd., LOTTE Japan will broaden its business areas in food, sports/health, restaurants, and services, while also stably expanding businesses to enhance corporate brand value.

A passion ready to bear fruit. LOTTE is recognized for its differentiated services and premium quality. >> India, a place for continued growth.

Products that embody our sincerest dedication go out into the world. A pleasant dream unfolds. >> Japan, where customers have long enjoyed the satisfaction LOTTE provides.

We deliver love.

We are committed to benefiting our neighbors, believing in innovation and achievement

and making efforts to create a future full of hope.

the way to Love

prepared way SOCIAL RESPOnSIBILITY 19

Social Contributions Believing that love grows when shared, LOTTE carries out activities

to contribute to society in various fields.

LOTTE gives care and support in many areas of society to help everyone fulfill their hopes for a better world. Since

the 1980s, LOTTE has supported immigrant workers, social welfare facilities, and the socially disadvantaged along

with offering scholarships in Korea and abroad by establishing the LOTTE Scholarship Foundation and LOTTE Welfare

Foundation. Moreover, the LOTTE Samdong Welfare Foundation, founded in 2009, consistently supports neighbors in

need, focusing on local communities in Ulsan. LOTTE also encourages education donations from all affiliates through the

Education Donation Bureau, and carries out specialized activities of social contribution with each affiliate, such as home

repairs, youth scholarships, volunteer activities, the one-company one-village partnership, a food bank, visits to sick

children, and fund-raising. Furthermore, LOTTE offers care and support around the world by supporting scholarships

and providing equipment in countries like China and Vietnam, where LOTTE has expanded its markets. LOTTE will

continue to offer hope, care, and support to the disadvantaged and to customers worldwide.

win-win Growth LOTTE aims for win-win growth, communicating, innovating,

and developing with our partners.

LOTTE believes that it is important to communicate, innovate, and establish efficient cooperative relationships with

partners, growing together through these means. LOTTE included an action plan for the group’s major policies in 2010

and created an official promotion office to actively implement this belief. The Win-win Growth Promotion Office provides

cyber education with the LOTTE Group Win-win Growth Course so employees can get a sense of the need for win-win

growth, and LOTTE opened a Win-win Growth Academy in 2010, offering over 400 courses to enhance capabilities with

partners. Moreover, diverse initiatives are being made, such as publishing the first win-win growth report in Korea to

share the win-win growth performance of each affiliate. LOTTE is also doing its best to ensure local community growth

and global win-win growth. We are actively bringing in regional specialties from relevant areas to contribute to the

revitalization of the local economy and maintaining global win-win growth by entering overseas markets with excellent

partners. LOTTE is opening a future of win-win growth through these diverse efforts.

Financial information

Growth Sales ∙ Profit Investment Global Business Global network M&A Market Share Store network Landmark Business

This material is meant to aid in understanding the company, and was produced based on the company’s own interpretation of present conditions. Consequently, actual results may differ according to the business environment and mid-to -long-term plans. Individual investors are thus responsible for making their own investments related to this content.

21

prepared way SOCIAL RESPOnSIBILITY

environmental Management LOTTE is carrying out various activities to pass down a clean,

green environment to the next generation.

LOTTE is conducting various activities to prevent environmental pollution and restore polluted parts of the environment

in the belief that we must provide a clean, green natural environment for the next generation. With the goal of being a

leading company in global sustainability management by 2018, LOTTE has established an environmental management

system at the group level and set up specific business policies. The LOTTE Group operates an exclusive department

and systematically manages environmental activities by selecting executives and relevant staff at each affiliate, to

implement environmental management at the corporate level. LOTTE companies have led environmental protection

activities with various campaigns that can be carried out with clients and partners as well, focusing on retail affiliates.

LOTTE are also achieving low-carbon green growth with a voluntary green purchase agreement with the Ministry of

the Environment. Affiliates such as LOTTE Chemical are making efforts to protect the environment by continuously

developing environmentally-friendly products. LOTTE will continue to take the initiative in responding to climate

change to become a sustainably green company through continuous green business R&D.


Growth

1967 1990 2000 2010 2015

3

13

912015(E)

62 2010

Sales ∙ Profit

1990 2000 2010

93.4 54.166.9

1

3

5

7

9

2

4

6

8

10

1

3

5

7

9

2

4

6

8

10

1

3

5

7

9

2

4

6

8

10

1

3

5

7

9

2

4

6

8

10

1

3

5

7

9

2

4

6

8

10

1

3

5

7

9

2

4

6

8

10

2322

Assets (1) net assets (2) Debt ratio (3) CaGr 3% (3yrs) 12% (10yrs)

CaGr 12% (3yrs) 9% (10yrs)

Sales M/S 2012 2013 2014 2015(e)

Food 9% 10% 10% 11%

Retail 40% 41% 43% 44%

Tourism · Services 18% 15% 13% 17%

28% 29% 29% 23%

Finance 5% 5% 5% 5%

Operating profit M/S 2012 2013 2014 2015(e)

Food 14% 14% 14% 13%

Retail 48% 45% 42% 35%

Tourism · Services 12% 11% 16% 18%

18% 22% 19% 28%

Finance 8% 8% 9% 6%

◦ Business ranking in Korea ◦ 2014 Financial State Unit: Trillion KRW, % ◦ Sales Unit: Billion KRW

◦ Operating profit Unit: Billion KRW◦ Group sales Unit: Trillion KRW

Growth Status annual sales and operating profitLOTTE is ranked 5th among Korean business groups based on assets, maintaining a stable financial structure in net assets and debt ratio.

Based on intensive investment in core businesses, successful M&A and global management, LOTTE has maintained an annual average sales growth of 12% and an operating profit growthof 9% for the past 10 years.

Source: LOTTE ▒ Food ▒ Retail ▒ Tourism · Services ▒ Chemicals · Construction · Manufacturing ▒ FinanceSource: LOTTE

LOTTE Founding

Chemicals ·Construction ·Manufacturing


812014

Source : April 2015 Fair Trade Commission announcement (late 2014) note : excluding public enterprises, based on asset ⑴ fair asset ⑵ total capital ⑶ finance companies

2012 2013

82,300

2014

83,300+1% 81,500

-2%

2015(e)

91,000+12%

3,520

2012

3,640+3%

2013

3,210-12%

2014

5,000+57%

2015(e)


Investment Global Business

2524

2014 Global sales

Investment and planning Global business performanceBased on a stable financial structure, LOTTE is expanding investment in core businesses and overseas projects and concentrating on developing new avenues of growth.

The global business of LOTTE has recorded 11 trillion KRW in sales with VRICI * countries as the center in 2014. LOTTE is making efforts to achieve this by developing experts in each overseas location and standardizing and localizing global business.* Vietnam / Russia / India / China / Indonesia

◦ Investment plan Unit: Billion KRW ◦ Global sales Unit: Billion KRW

◦ regional portion of overseas business

◦ Main investment details

Source: LOTTE ▒ Food ▒ Retail ▒ Tourism · Services ▒ Chemicals · Construction · Manufacturing ▒ Finance

Food

retail

• M&A, joint ventures, expanding into new overseas markets

• Accelerating expansion of stores in Korea and overseas, building online infrastructure

• Constantly promoting multi-purpose complexes in Korea and overseas such as skyscrapers

• Enhancing competitive edge by diversifying raw materials

• Establishing Beer Factory 2, reinforcing well-being/premium businesses

• Expanding omni-channels and bringing innovation to distribution

• Reinforcing overseas expansion of hotels and duty free shops

• Promoting overseas power generation plant projects and shale gas business

11 trillion KRW

Malaysia

Philippines

Russia

Pakistan

India/etc.

KazakhstanVietnam

China

Indonesia

Chemicals ·Construction

Source: LOTTE ▒ Food ▒ Retail ▒ Tourism · Services · Finance ▒ Chemicals · Construction · Manufacturing

CaGr 11%

Sales M/S 2012 2013 2014 2015(e)

Food 12% 13% 16% 16%

Retail 38% 39% 40% 40%

Tourism · Services · Finance 2% 3% 3% 10%

48% 45% 41% 34%


29%

6%

6%

5%

6%2%

3%

14%29%

2012

2013

2014

2015(e)

2%

7,50014% 51% 12%21%

1%

6,70019%8% 58% 14%

2%

6,50015% 51% 21% 11%

2%

5,70019% 42% 10%27%

2013

10,300

2014

11,000

2012

9,300

2015(e)

12,800

Tourism ·Services


Global Network M&A

China confectionery/beverages/department store/ hypermarket/supermarket/chemicals/ construction/hotel/fast food/TV shopping/ cinema/IT/capital/others

russia hotel/department store/confectionery

Vietnam hypermarket/hotel/fast food/confectionery/ cinema/construction/others

India confectionery/construction/logistics

Indonesia department store/hypermarket/fast food/ chemicals/duty free shop/IT/others

Malaysia confectionery/chemicals

pakistan confectionery/chemicals/construction

U.K. chemicals/logistics

Italy logistics

philippines beverages

Belgium confectionery

Japan fast food/beverage/duty free shop/

Netherlands logistics

Germany logistics

Myanmar fast food/beverage

Uzbekistan chemicals/hotel

Kazakhstan confectionery

Singapore confectionery/duty free shop

Brazil logistics

U.S.a hotel/chemicals/ beverages/trade/duty free shop

Cambodia fast food/logistics

M&A

40%Organic growth

60%

81

422008

2014 23 16

2726

Division 2009 2010 2011 2012 2013~

Food Doosan Liquor Pasteur Dairy Company Chungbuk Soju Rakhat (Kazakhstan)

Kirin Food Burger King (Japan) Kolson (Pakistan) MGS Beverage (Myanmar)

PCPPI (Philippines)

retail Times (China) GS Retail CS Retail

Buy the Way 2 stores Grand Mart

AK Duty Free Shop Hi-mart Diamond Plaza(Vietnam)

Lucky Pai (China)

Chemicals LPPTA (Pakistan) LCUK (U.K.)

Sambark Dacc

Titan Chemical (Malaysia)

Others MYbi EB Card Legend Hotel (Vietnam) Hyundai Logistics

KT rental

The new York Palace (U.S.A.)

Global business state Growth initiativesBased on the VRICI * countries, LOTTE is engaged in over 20 businesses in more than 20 countries worldwide, while also constantly promoting entry into ‘Post VRICI’ countries such as Central Asia and the Middle East.* Vietnam / Russia / India / China / Indonesia

LOTTE is pursuing balanced growth by integrating M&A with organic growth.

Germany

Belgium

Russia

Uzbekistan

Pakistan

India

Malaysia

Singapore

U.S.A.

◦ M&a performance

Hyundai Information Technology

◦ LOTTe growth engine analysis Unit: Trillion KRW

Source: LOTTE

Myanmar

Kazakhstan

China

Japan

Vietnam

Cambodia

Philippines

Indonesia

Italy

Daewoo Department Store

Brazil

United Kingdom

netherlands


M/S 1st

Market Share Store Network

2928

Industry Business Field M/S

Food Confectionery 41%

Ice cream (1) 56%

Beverage 40%

Burger 51%

retail Department store 47%

Supermarket (2) 46%

Online shopping mall (3) 36%

Home appliances store (4) 54%

Chemicals (5) Ethylene 25%

PET 57%

MEG 76%

Tourism Hotel (6) 14%

Duty free shop 54%

Theme park(7) 44%

0 50 100

Business fields with top M/SLOTTE has secured top M/S competitiveness in Korea with concentrated development of core business fields and products.

domestic and overseas store networkLOTTE is expanding brand awareness and creating synergy effects by establishing over 16,000 stores in Korea and overseas.

Source: LOTTE note: Based on 2014 sales ⑴ LOTTE Confectionery+LOTTE Foods ⑵ Based on Big4 ⑶ LOTTE.com+LOTTE iMall ⑷ Based on Big4 ⑸ Based on domestic production capacity ⑹ Based on annual room sales ⑺ On the basis of Annual attendence

◦ Overseas

No. of LOTTe stores in Korea and overseas: 16,001

Total 12,456

◦ Korea

No. of stores

LOTTE Super (2) 1,388

7-Eleven (3) 7,417

LOHB’s 34

LOTTE Cinema 103

LOTTERIA 1,284

No. of stores

UnIQLO (SPA) 154

ZARA (SPA) 43

No. of stores

LOTTE Hotel 10

LOTTE Duty Free 7

LOTTE Department Store (1) 51

LOTTE Mart 116

LOTTE Hi-mart 438

No. of stores

Angel-in-us Coffee 922

Krispy Kreme Doughnuts 108

T.G.I Friday’s 44

natuur (ice cream) 187

LOTTE Boulangerie 150

Vietnam russia Indonesia China Singapore / Guam Myanmar / Cambodia Japan Total

LOTTE Hotel 2 1 1 (1) 5

LOTTE Duty Free 2 2 1 5

LOTTE Department Store 2 1 1 5 9

LOTTE Mart 10 39 103 152

LOTTE Super 17 17

LOTTE Cinema 16 11 27

LOTTERIA 205 33 12 10 (449) 709

Angel-in-us Coffee 5 3 6 14

Krispy Kreme Doughnuts (59) 59

Burger King 97 97

Mary’s Chocolate (2,057) 2,057

Ginza Cozy Corner (394) 394

Total 240 2 78 154 3 10 3,058 3,545

Source: LOTTE (based on May 2015) note: ⑴ Department store + Young Plaza + Outlet ⑵ CS retail(435) included ⑶ 7-Eleven + Buy the way ⑷( ): LOTTE JAPAn

Worldpreparedprepared


Landmark Business

30

Multi-complex with gross area of 1.5 million m²

LotteWorld Tower, Mall (Jamsil, Seoul)

Department store, hotel, cultural facilities, shopping mall, etc.

2014_ Open luxurious department store, shopping mall2016_ Complete final constructionLotteWorld Tower) 6-star hotel, office, observatory, state-of-the-art global business complexLotteWorld Mall) northeast Asia’s biggest multiple tourism and shopping complex linked with LOTTE World

Facilities

Completion

LOTTE Center Hanoi(Vietnam)

Department store, hotel, office, etc.

2014_ Complete construction, Will be operated for the next

50 years

Shenyang Project (China)

Theme park, hotel, department store, cinema, etc.

2014_ Open department store, cinema2019_ Complete final construction

New Concept Complex Mall projectLOTTE is increasing corporate brand value through skyscraper construction, joint overseas expansion of retail, tourism and leisure, and new concept complex mall construction.

123 above ground floorsHeight 555m

65 above ground floorsHeight 268m

There is a world prepared just for you. LOTTE is creating a world of reliable products and premium

services, a beautiful world where everyone can be happy.

There is a world prepared just for you. LOTTE is creating a world of reliable products and premium

services, a beautiful world where everyone can be happy.

33

LOTTE Confectionery *

LOTTE Chilsung Beverage *

LOTTE Foods *

LOTTERIA

LOTTE Asahi Liquor

LOTTE-nestle(Korea)

LOTTE LHP Corporation

•••

LOTTE Shopping *

LOTTE Department Store

LOTTE Mart

LOTTE Super

LOTTE Cinema

LOHB’s (H&B Division)

LOTTE Hi-mart *

Korea Seven

LOTTE Home Shopping

LOTTE.COM

FRL Korea

•••

food & beverage retail

finance

LOTTE Chemical *

LOTTE MRC

Seetec

KP Chemtech

Sambark LFT

LOTTE E&C

LOTTE E&C CM Business Headquarters

LOTTE Aluminium

LOTTE Aluminium Engineering & Machinery MFG Division

Canon Korea Business Solutions

Korea Fujifilm

•••

Business Structure

‛*’ Listed company

LOTTE Hotel

LOTTE Duty Free

LOTTE World Adventure

LOTTE JTB

LOTTE Asset Development

LOTTE Corporation

LOTTE rental

LOTTE International

LOTTE Skyhill C.C.

LOTTE Data Communications Company

Hyundai Information Technology *

Daehong Communications

LOTTE Members

LOTTE Logistics

LOTTE PS net

LOTTE Giants

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LOTTE R&D Center

LOTTE Academy

LOTTE Strategy & Insight Center

LOTTE Scholarship Foundation

LOTTE Welfare Foundation

LOTTE Samdong Welfare Foundation

•••

LOTTE Card

LOTTE Insurance *

LOTTE Capital

MYbi

EB Card

•••

chemical /construction /manufacturing R&D / support

tourism / service

LOTTE started its food business in 1967, when LOTTE Confec-

tionery was founded. LOTTE continues to produce top prod-

ucts in the industry based on efficient marketing and brand

strategies, exporting diverse products such as confections,

beverages, and liquor around the world.

LOTTE thoroughly manages the safety of foods through the

LOTTE R&D Center and has maintained the world’s highest

level of quality and safety by acquiring environmental, quality,

and safety-management system certifications at all business

sites, as well as the Hazard Analysis Critical Control Points

(HACCP) certification.

LOTTE’s representative food brands, including Xylitol, Pepero,

Ghana Chocolate, Koala’s March, Chilsung Cider, Let’s Be, Mil-

kis, and Chum-churum, are all enjoying consistent popularity

throughout the world. The franchise businesses, LOTTERIA,

Angel-in-us Coffee, and natuur, have added pleasure to the

lives of customers worldwide.

LOTTE’s food business will further solidify the market com-

petitiveness of its current business fields while LOTTE also

continues to develop new businesses and reinforce its over-

seas operations, with an eye to becoming the best-loved food

company in the world, not just in Asia.

providing the taste of love. Making fresh,

clean foods like homemade foods. Sharing

good food for everyone’s happiness.

Setting out into the world with brand

competitiveness

LOTTE Confectionery LOTTE Confectionery is a company spe-

cializing in various confectionery products such as chewing

gum, candies, biscuits, snacks, pies, chocolate, and ice cream,

all of which are popular throughout China, Vietnam, India, and

Russia. It will grow to become a leading confectionery company

that represents Asia by enhancing competitiveness of current

products and developing new products.

LOTTE Chilsung Beverage Leading the beverage industry in

Korea, LOTTE Chilsung Beverage exports a variety of products,

including juices, coffee, and mineral water. It is enhancing the

brand value of core products and creating new growth engines

to make itself a global, comprehensive beverage and liquor

company. The company’s liquor business holds the top rank in

customer satisfaction and soju exports with well-developed

technical skills and outstanding quality. It is also promoting

new growth with the beer business.

LOTTE Foods LOTTE Foods is Korea’s representative general

food company with the merger of LOTTE Samkang, LOTTE

Ham, Pasteur, LOTTE Fresh Delica, and Welga. To create foods

that can be enjoyed and trusted by customers, the company

is striving for strict quality control with the latest facilities. It

enjoys a high level of recognition by customers for its fats/food

materials, meat processing, dairy products, ice cream, and food

service. The company is constantly endeavoring to provide

healthier, more abundant meals.

LOTTERIA LOTTERIA is maintaining growth by leading the

food-service business in Korea. It is striving to grow into a

leading franchise company that represents Asia through such

brands as Krispy Kreme Doughnuts, TGI Friday’s, Angel-in-us

Coffee, and natuur, while also actively conducting business

overseas in Vietnam, Indonesia, and Myanmar.

LOTTE Asahi Liquor LOTTE Asahi Liquor imports and sells beer

and Japanese rice wine. By importing competitive products

such as Asahi Beer, the company is maintaining the top market

share for imported beer in Korea. It will build a solid foundation

as a leading imported liquor company in Korea through market

expansion and marketing.

LOTTE nestlé Korea LOTTE nestlé Korea is a joint venture

company between Lotte and nestlé, the world's biggest food

company. It produces, distributes, and sells various products of

nestle, including powdered drinks, nestle Professional prod-

ucts, and Pet care products. By maximizing the advantages of

both nestlé and LOTTE, it provides the best products that meet

the demands and expectations of consumers.

LOTTE LHP Corporation LOTTE LHP Corporation organizes the

display of LOTTE foods products, distributes and expands allot-

ted space, provides useful information at retailers, and creates

a synergy effect by collaborating with distribution channels.

prepared wOrLd BUSInESS OVERVIEW 35

food & beverage

LOTTE Department Store LOTTE Department Store has po-

sitioned itself as the number-one department store in Korea

under the slogan ‘lovely life’ To grow internationally into a

global top retail company, it continues to add stores in China

while penetrating new markets in Vietnam and Indonesia.

LOTTE Mart LOTTE Mart is a global retail company bringing

customers happiness. It has over 260 stores in China, Indo-

nesia, and Vietnam as well as Korea and is working hard to

emerge as Asia's top retailer.

LOTTE Super LOTTE Super is Korea’s top supermarket and has

achieved continuous growth. It provides fresh, safe products

through an optimized logistics information system. It is appre-

ciated for the value it provides in the Chinese market as well.

LOTTE Cinema LOTTE Cinema is a multiplex movie theater

chain entirely built with domestic technology. It is building

multiplex chain networks in Korea as well as China and Viet-

nam, LOTTE Entertainment is actively participating in film

investment and distribution as well as the musical business

by operating Charlotte Theater.

LOHB’s LOHB’s is a health and beauty retail brand providing

beauty and cosmetic products as well as a variety of health

products. Customers can enjoy one-stop shopping in diverse

categories, and discerning customers freely select products

on their own in the Select Zone.

LOTTE Hi-mart LOTTE Hi-mart is Korea’s largest retailer spe-

cialized in electronic goods, with over 440 stores nationwide

including 100 shop-in-shop stores in LOTTE Mart. Through

LOTTE's retail infrastructure, Hi-mart leads the distribution

of electronic products by providing differentiated customer-

oriented services.

Korea Seven Korea Seven, which operates 7-Eleven, is striv-

ing to satisfy its customers under the mission of becoming an

uplifting leader that fills daily life with happiness. It provides

differentiated goods and services for customers by establish-

ing an integrated space for lifestyle convenience and increas-

ing PB products.

LOTTE Home Shopping LOTTE Home Shopping provides a

variety of products through its TV channel. It is exporting TV

home shopping technical skills and business know-how to

such countries as Taiwan, China, and Vietnam. It will continue

to carry out its overseas business successfully to grow into the

leading global home shopping company in Asia.

LOTTE.COM LOTTE.COM is Korea’s first online shopping mall

and has led the industry with steady growth every year. It

provides Internet and mobile services, while also promoting

new projects such as a shopping-mall agency business and

product diversification.

FRL Korea FRL Korea develops business as the brand man-

ager for the global SPA brand Uniqlo, expanding the business

with the goal of opening a total of 300 stores in Korea.

retailwidely distributing the fruits of the

makers’ dedication. Sharing emotions

through excellent products and services.

Spreading happiness from heart to heart.

LOTTE has led Korea’s retail industry with differentiated

products and advanced distribution systems. It is achiev-

ing recognition both offline and online through TV home

shopping, Internet shopping malls, and mobile malls by

constantly enhancing its distribution system and infra-

structure.

Founded in 1979, the LOTTE Department Store is by far

Korea’s number-one department store, widely loved by

customers in the major cities of Korea as well as overseas

in such countries as Russia, China, and Indonesia. LOTTE

Mart has also grown into one of Korea’s leading retail

companies by continuously expanding in such overseas

markets as China, Vietnam, and Indonesia, while LOTTE

Super is also developing business in China. Korea Seven,

which introduced 7-Eleven to Korea, is also building trust

with a broad variety of products and great services.

As Korea’s first online shopping mall, LOTTE.COM is lead-

ing the industry through continuous growth since its

foundation, while LOTTE Home Shopping is also enhanc-

ing competitiveness using diverse media such as TV, the

Internet, mobile service, and catalogs.

LOTTE will integrate the competitiveness of each affili-

ate to constantly develop new growth engines and leap

forward as a global retail company by actively promoting

overseas businesses in China, Vietnam, and Indonesia.

Moving ahead with devoted service and

outstanding systems

37prepared wOrLd BUSInESS OVERVIEW

LOTTE has contributed to the development of the Korean

tourism industry with competitive affiliates including

LOTTE Hotel, LOTTE Duty Free, LOTTE World, LOTTE Asset

Development, and LOTTE Skyhill C.C., providing pleasure

and satisfaction for customers around the world.

Established in 1973, LOTTE Hotel is Korea’s world-class

hotel brand as well as the largest hotel chain in Korea, and

is also a successful performer in such overseas markets

as Russia and Vietnam. LOTTE Duty Free provides the

best products and services to domestic and international

customers with Korea’s largest network of branches. The

LOTTE World Tower project, which is to be completed in

2016, will be one of Korea’s most popular tourist attrac-

tions as a complex combining tourism, retail, and culture,

equipped with a skyscraper, hotel, luxurious department

store, and shopping mall. Moreover, Busan LOTTE Town will

contribute to the development of various tourism projects

and national industry as well as the creation of jobs.

LOTTE’s service companies are making efforts to provide

the best services for customers in fields such as telecom-

munications, trade, marketing communication, distribu-

tion and sports. The IT companies are conducting service

businesses in various industries, while distribution and

financial service companies are enhancing competitive-

ness through the infrastructure of the LOTTE Group.

Working to become the global leader of the

tourism and service industry

tourism /service Gives you that special feeling.

provides rest and relaxation with optimized

services. works to make this moment the

best time of our customers’ lives.

LOTTE Hotel LOTTE Hotel is a hotel and resort chain featuring

global competitiveness. It has opened premium hotels and

resorts in major cities of Korea including Seoul, Busan, Jeju

and Ulsan, as well as Russia, Vietnam, Uzbekistan and Guam. It

will become a leading global hotel brand beyond Asia's top 3

hotel brands by opening over 40 hotels in major cities around

the world by 2018.

LOTTE Duty Free LOTTE Duty Free has the largest number of

duty-free shops in Korea as well as an online shop. It was the

first in the industry to succeed in overseas expansion to Sin-

gapore, Indonesia, and Guam, and it will continue to pioneer

new global markets.

LOTTE World Adventure LOTTE World Adventure is a global

indoor theme park and is visited by over 8 million people every

year. It will broaden its business, adding Gimhae LOTTE Water

Park, LOTTE World aquarium and observatory, and Shenyang

Theme Park in China to become a leading global theme park.

LOTTE Buyeo Resort LOTTE Buyeo Resort is a complex for

shopping, leisure, and culture. It includes a hotel-class con-

dominium that is equipped with a premium outlet store,

swimming pool, and Skyhill Buyeo C.C. along with other

facilities and programs. It will be ranked as one of the world’s

foremost resort complexes.

LOTTE Jeju Resort LOTTE Jeju Resort provides customers

with luxurious accommodations called Art Villas as well as a

full compendium of facilities and services for leisure, enter-

tainment, and recreation.

LOTTE JTB LOTTE JTB is a travel and tourism agency with the

advantage of access to the LOTTE Group’s tourism and distri-

bution infrastructure as well as JTB’s global network of over

170 affiliates. Using the infrastructure and network, LOTTE

JTB provides differentiated high-class travel services, making

it one of the world’s leading travel agencies.

LOTTE Asset Development LOTTE Asset Development con-

ducts businesses such as real estate development, shopping

mall operation, asset management, and financial consulting

services. It will grow as a global integrated asset development

company by focusing on mixed-use development and asset

management.

LOTTE Corporation LOTTE Corporation is currently in charge

of the construction of the 123-story skyscraper and landmark

building, LOTTE World Tower and LOTTE World Mall. The com-

pany plans to build a multiple complex of tourism, retail, and cul-

ture made up of the finest hotel and offices, a luxury department

store, a shopping mall, and various entertainment facilities.

LOTTE rental LOTTE rental is an integrated rental company

that operates an auto rental business with Korea's top company

LOTTE rent-a-car and company Green car, and the general rent-

al business handling office machines and IT devices. LOTTE

rental devotes itself to creating a better life and becoming

a global ICT rentalution (rental + solution) leader that tran-

scends the status of being no.1 in Korea.



finance

LOTTE International LOTTE International is making ef-

forts to provide competitive products at reasonable

prices for consumers through the SCM (Supply Chain

Management) solution. The company is importing vari-

ous products through its systematic global network and

is exporting excellent products around the world.

LOTTE Skyhill C.C. LOTTE Skyhill C.C. has opened golf

courses and resorts in Jeju, Gimhae, Seongju, and Buyeo.

Working towards becoming Korea's leading golf and lei-

sure company, LOTTE Skyhill C.C. is maximizing customer

services and developing professional talent.

LOTTE Data Communications Company LOTTE Data

Communications Company leads the development of

knowledge information in such industries as retail, manu-

facturing, construction, chemistry, and financial services.

The company is growing with customers through maxi-

mized IT efficiency and development.

Hyundai Information Technology Hyundai Information

Technology provides a total solution for corporate infor-

mation in various business fields. With its differentiated

technical skills, it leads IT information services and will

secure its position as a renowned IT service leader.

Daehong Communications Daehong Communications

is an integrated marketing communications company

specializing in advertising, media management, sales

promotion, digital/sports marketing, and public relations.

It helps customers as a Best Marketing Partner through its

successful marketing experience.

LOTTE Members LOTTE Members is a specialized royalty

marketing company in charge of managing the integrat-

ed membership of LOTTE's subsidiaries. It holds 30 million

L.POInT members and is conducting business in China

and Indonesia. LOTTE Members plans to continuously

develop open point business operations, specialized ana-

lytics business based on big data, and marketing platform

business.

LOTTE Logistics LOTTE Logistics is an integrated logistics

company that provides optimum logistic services based

on top-tier logistics systems in all areas including land,

sea and air. It has continued to expand in overseas mar-

kets such as China, Hong Kong, Indonesia and Vietnam,

and will expand its scope in business areas such as global

outsourcing and vendor businesses as well as third-party

logistics to grow into a top global logistics company.

LOTTE PS net LOTTE PS net provides financial services

through ATMs and automated financial systems. It will ac-

tively use the LOTTE ATM infrastructure to provide more

diversified benefits and services for customers.

LOTTE Giants LOTTE Giants is a professional baseball

team based in Busan, South Korea, and one of the original

franchises of the Korea Baseball Organization league.

LOTTE Giants will continue to improve their skills, expand

facilities, and strengthen fan services in order to express

gratitude for the fans’ steadfast love.

LOTTE’s finance business is a new growth engine to lead the

future of LOTTE Group. LOTTE Card has grown into a leading

credit card company by joining forces with the card sector

of the LOTTE Department Store. newly launched after the

acquisition of Daehan Fire & Marine Insurance in 2008, LOTTE

Insurance has solidified the foundation for growth, recording

the highest growth in sales in the industry just one year after

its establishment, which led to an expansion of its sales force.

LOTTE Capital is a comprehensive finance company providing

diverse financial services based on reliable business infrastruc-

ture. MYbi Card and EB Card are also increasing the value of

smart cards, using the financial networks of the LOTTE Group.

LOTTE Card LOTTE Card is Korea’s representative credit card

company associated with a distributor. LOTTE Card is popular

among customers for the service network that integrates

the entire infrastructure of the LOTTE Group. Moreover, it will

build a top lifestyle financial network by integrating lifestyle

financial services and customized infrastructure.

LOTTE Insurance LOTTE Insurance provides insurance and

financial services, including long-term insurance, auto insur-

ance, and other property insurance products. It aims to grow

to become Asia’s leading insurance and financial company by

constantly securing market competitiveness and expanding

overseas markets.

LOTTE Capital LOTTE Capital is a total financial provider, offer-

ing a variety of financial services for companies and individual

clients. It has been actively engaged in overseas expansion

in Japan, China, and Indonesia and is growing into a global

credit provider that achieves win-win growth with clients.

MYbi/EB Card MYbi and EB Card offer automatic bus-fare

payment systems and other electronic payment systems for

daily life, based on radio-frequency smart-card technology.

now the company has added a function that allows custom-

ers to accumulate L.POInT by using the Cashbee Card, which

is a joint prepaid transportation card brand.

Providing various financial services to enrich

the lives of our custemors

Fulfilling your dreams.

providing financial services with clarity

and courtesy. walking the right path

from belief to growth.

chemical /construction /manufacturing

LOTTE has been contributing to the development of the

domestic chemical industry since its entrance into the field

in the 1970s. LOTTE Chemical, newly launched through

the merger of Honam Petrochemical and KP Chemical, has

achieved vertical integration of raw materials and prod-

ucts through continuous expansion of facilities and busi-

ness. It will not only focus on core domestic businesses

but will also expand overseas to China, Southeast Asia,

UK, Pakistan, Uzbekistan and the US, among other places,

while continuously striving to develop new projects.

LOTTE’s construction business is displaying outstanding

capabilities with technologies developed over a 40-year

period. It will further enhance its capabilities in the new

growth engines of plants and skyscrapers while also pio-

neering such new markets as Africa by actively pursuing

private capital development projects.

LOTTE has secured competitiveness in manufacturing by

continuously developing specialized businesses for each

affiliate, such as LOTTE Aluminium, Canon Korea Business

Solutions, and Korea Fujifilm. It will be specialized fields

of manufacturing with core technical skills developed

through R&D, through which it will secure a dominant

position in the domestic market.

Succeeding in global business with well-

developed capabilities

LOTTE Chemical As LOTTE Group’s flagship petrochemical

company, LOTTE Chemical is made up of subsidiaries includ-

ing LOTTE Chemical Titan, LOTTE Chemical Pakistan, KP

Chemtech, and Sambark LFT, as well as the affiliates LOTTE

MRC and LOTTE Mitsui Chemicals. It produces basic petro-

chemical materials, intermediates, and synthetic resins, also

focusing on new mega-trend businesses such as functional

materials, environmentally-friendly products, and energy-

storage devices. LOTTE Chemical has also established a

strong foundation overseas with LOTTE Chemical Pakistan,

launched in 2009, and with the 2010 acquisition of Malaysia’s

Titan Chemical. KP Chemtech produces PET, nylon resins

and yarn, striving to become the world’s foremost company

with new engineered plastic technologies. Sambark LFT

produces products that make use of thermoplastic long-fiber

reinforced resins, and Seetec provides all utilities, logistics

services, and R&D services related to hydrogen, oxygen, and

nitrogen. LOTTE MRC produces MMA and PMMA, striving

to be a leader in the high-value added portion of the petro-

chemical market. LOTTE Chemical maximizes its business

capabilities through synergies between subsidiaries and af-

filiates in order to become Asia’s best chemical company.

LOTTE E&C LOTTE E&C is a general construction company

that has received recognition for its capabilities in housing,

plants, civil engineering, multiplex facilities, and skyscraper

construction. It is currently focusing on developing new

technologies with the new growth engines of development

projects, plant engineering, and skyscraper construction.

LOTTE E&C CM Business Headquarters LOTTE E&C CM Busi-

ness Headquarters works toward reduction of construction

costs and improving quality from design to construction. The

company is persistently enhancing outsourcing and conduct-

ing overseas projects.

LOTTE Aluminium LOTTE Aluminium specializes in packag-

ing materials. It produces a variety of products including

aluminum foils, flexible packaging, cans, PET bottles, and

corrugated-board boxes, and is diversifying its business scope

to include environmentally-friendly materials and IT materials

as well as high-performance products.

LOTTE Aluminium Engineering & Machinery Mfg. LOTTE

Aluminium Engineering & Machinery Mfg. is making constant

efforts to maintain its position as the leader in the industry

through continuous technological innovation in the fields of

automatic vending machines, showcases, air-conditioning and

heating systems, parking facilities, and other total solutions.

Canon Korea Business Solutions Canon Korea Business So-

lutions provides customized, integrated solutions in office

equipment. It has improved Korea’s office environments with

state-of-the-art office equipment and is currently striving for

new business expansion and increased exports.

Korea Fujifilm Korea Fujifilm provides total imaging solutions

involving film and photographic equipment. It is producing

industrial products and bringing its capabilities to bear in

new business fields such as life science and cosmetics.


Contributing to the world’s development.

Changing the world with excellent products.

Giving customers greater value through

diversified, highly productive businesses.

R&D /supportMaking the world a more convenient,

happier place. discovering a broader

world in various fields. preparing for the

future with dedication and insight.

prepared wOrLd BUSInESS OVERVIEW

LOTTE has started a dream and taken on challenges that are

turning into happiness for many people around the world. We promise

always to be prepared to help create a better life for everyone.

LOTTE is enhancing its R&D business to build growth infra-

structure and support businesses for social development.

The R&D business leads the development of the LOTTE

Group with ongoing studies in such fields as food R&D,

food safety, human resources, and economic prospects.

Moreover, the support business offers a variety of services

in social contributions such as scholarships and welfare,

providing help to those in need.

LOTTE R&D Center The LOTTE R&D Center is in charge of

the future development of the LOTTE Group’s food business.

It will secure its position as Asia’s best food R&D center with

constant product R&D and safety inspections of products.

LOTTE Academy The LOTTE Academy is devoted to improv-

ing the capabilities of the employees of the LOTTE Group.

It is striving to establish a foothold that will enable it to be-

come a global business group by improving leadership.

LOTTE Strategy & Insight Center The LOTTE Strategy &

Insight Center suggests directions the LOTTE Group should

take in various fields of business and provides efficient

solutions for reaching its objectives. It is developing core

capabilities of the LOTTE Group with various investigations

and studies on economic prospects and with industry

analysis and global market research.

LOTTE Scholarship Foundation The LOTTE Scholarship

Foundation provides scholarships for outstanding talent

and those in need. It will contribute to balanced develop-

ment in society through a gradual expansion of educa-

tional welfare for low-income earners.

LOTTE Welfare Foundation The LOTTE Welfare Founda-

tion is providing support for social welfare centers, foreign

workers and the socially neglected classes. It will focus

more on providing support for the disadvantaged in areas

where there is no welfare.

LOTTE Samdong Welfare Foundation The LOTTE Samdong

Welfare Foundation is conducting various welfare projects

around Ulsan. It will contribute to creating a bright and

happy society by actively providing support for the socially

neglected classes, welfare centers, cultural projects, and

welfare programs.

Developing differentiated capabilities

in each field

originality we see a new future as leaders

of our age and culture. we create a rich and rewarding

life through innovation and original thinking.

trust

we promise to provide convenient services

and reliable products. The value of the trust of

our customers opens the way to a secure and happy future.

The value of happiness increases for everyone

around the world. with the pleasure we feel together,

we create a warm and bright society.

pleasure

lot

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