August.

2019
 Disclaimer

The financial information included in this material is earnings based on K-IFRS.

All information regarding financial results and business performance contained
herein have been prepared on a separate basis that excludes subsidiaries.
 General Information Shareholding Structure
· Established May 9, 1950 As of End-June 2019

· Main Business Beverage/Liquor

· Employees 6,095 (Beverage 4,310, Liquor 1,785)
· Production 13 plants (Beverage 6, Liquor 7)
· Sales Organization 147 branches
· Shareholdings Common stock as of End-
June 2019
Name Shares Ownership (%)
LOTTE Corporation 2,121,660 26.54
LOTTE Aluminum 708,870 8.87
LOTTE Scholarship 501,680 6.28
Hotel LOTTE 473,450 5.92
LOTTE Japan 109,830 1.37
Shin, Dong-Bin - -
26.5% LOTTE Asahi
Shin, Kyuk-Ho 104,080 1.30
50.0% Liquor (KOR)
Shin, Young-Ja 212,380 2.66 -1Share
Related Parties &
LOTTE Affiliates 4,234,030 52.96
Sanchung
Others 3,339,320 41.78 66.7% Beverage (KOR)
Treasury Shares 420,110 5.26
LOTTE Akhtar
Total 7,993,460 100.0 52.0% Beverage (Pakistan)
* Note: Excl. 775,310 Preferred Shares

2
Established in1950 / Acquired by LOTTE Group in 1974 / Merged with LOTTE Liquor in 2011

Major Business Events

Acquired CJ CheilJedang’s beverage unit (KRW-BN)
Y2001
(Gatorade, Pine Bud Drink, etc.)

Y2005 Started beverage business in China 2,323

Y2009 Acquired liquor business from Doosan 2,084
Y2010 Started beverage business in Philippines (PCPPI)
Started business in
Y2011 Merged with LOTTE Liquor Pakistan in 2018
Y2013 Started beverage business in Myanmar (LTMGS) Completed divestiture
1,564 And merger in 2017
Y2017 Completed divestiture and merger

Y2018 Started beverage business in Pakistan (LTAB)

Started business in
Myanmar in 2013
1,102
Merged with LOTTE Liquor in 2011

Started business in Philippines in 2010

606 Acquired liquor business from Doosan in 2009

Started beverage business in China in 2005

48 Acquired CJ CheilJedang’s beverage unit in 2001

Y1950 Y1995 Y2000 Y2005 Y2010 Y2015

*Separate Financial Statement Sales

3
  Sales : 2019 1~2Q 1,205 BN KRW (YoY +7.9%)
 Operating Income : 2019 1~2Q 68 BN KRW (YoY +117.8%)

Sales Operating Income

(KRW-BN) (KRW-BN)

2,323
2,279

+7.9%
+117.8%
1,205 88
1,116 75
68

31

Y2017 Y2018 18.1~2Q 19.1~2Q Y2017 Y2018 18.1~2Q 19.1~2Q

Source : Company Separate Financial Statement

4
  Sales : 2019 1~2Q 1,252 BN KRW (YoY +11.6%)
 Operating Income : 2019 1~2Q 66 BN KRW (YoY +104.5%)

Sales Operating Income

(KRW-BN) (KRW-BN)

2,346
2,279

+11.6%

+104.5%
1,252
85
1,122 75
66

32

Y2017 Y2018 18.1~2Q 19.1~2Q Y2017 Y2018 18.1~2Q 19.1~2Q

Source : Company Consolidated Financial Statement (Subsidiary Company : Sanchung Beverage(KOR), LOTTE Akhtar Beverage Limited(Pakistan))
5
  Sales : 2019 1~2Q 806 BN KRW (YoY +7.1%)
 Operating Income : 2019 1~2Q 81 BN KRW (YoY +29.8%)

Sales Operating Income

(KRW-BN) (KRW-BN)

147
1,567
1,515 +7.1% 116 +29.8%

753 806 81
63

Y2017 Y2018 18.1~2Q 19.1~2Q Y2017 Y2018 18.1~2Q 19.1~2Q

Source : Company Separate Financial Statement

6
  Sales : 2019 1~2Q 399 BN KRW (YoY +9.7%)
 Operating Income : 2019 1~2Q -13 BN KRW (YoY +59.1%)

Sales Operating Income

(KRW-BN) (KRW-BN)

+9.7% +59.1%
764 757

364 399
-13
-31
-42
-59
Y2017 Y2018 18.1~2Q 19.1~2Q Y2017 Y2018 18.1~2Q 19.1~2Q

Source : Company Separate Financial Statement

7
 Sales Breakdown1) Domestic M/S for Core Products2)

Cider No.1 Juice No.1 Coffee No.1 Energy No.1

72% 29% 27% 45%

<Chilsung-Cider> <Del Monte, <Let’s Be, Cantata> <HOT6ix>

Tropicana>

Sparkling W. No.1 Mineral W. No.2 Ftn.Drink No.3 Tea No.3

58% 21% 21% 10%

<Trevi> <ICIS, ICIS 8.0> <Gatorade> <Lipton, Ceylon-Tea>

Source : 1) 19.1~2Q Sales, 2) According to Nielsen Index and Internal Data

8
 Beverage
(KRW-BN, %)

Functional Mineral Sparkling

Year Carbonated Juice Coffee
Drinks Water Water

2018 307 104 115 21 77 25

2019 324 105 128 22 86 28

Chg. 17 1 13 1 9 3

% YoY 5.9 0.5 11.3 2.5 10.5 12.9

% YoY Net sales

Y18 Y19
+5.9%

+0.5% +11.3%
307 324 +10.5%
+2.5% +12.9%

104 105 115 128

77 86
21 22 25 28

Carbonated Juice Coffee Functional Drinks Mineral Water Sparkling Water

Chilsung-Cider Pepsi-Cola Organic Juice Cantata Contrabase Let’s Be Art Water ICIS 8.0 Orangina

Source : Company Internal Data (Domestic)

9
 Income Statement Balance Sheet
(Unit: KRW-100MN) (Unit: KRW-100MN)

11,165 100.0 12,051 100.0 7.9 6,704 8,302 9,765 17.6

6,844 61.3 7,009 58.2 2.4 25,313 26,386 25,511 (3.3)

4,320 38.7 5,042 41.8 16.7 32,018 34,688 35,276 1.7

4,006 35.9 4,358 36.2 8.8 6,464 6,071 12,393 104.1

314 2.8 685 5.7 117.8 13,634 16,077 10,085 (37.3)

112 1.0 286 2.4 155.7 20,098 22,148 22,478 1.5

40 0.4 (395) (3.3) (1,093.0) 11,920 12,539 12,798 2.1

Source : Company Separate Financial Statement

10
 Income Statement Balance Sheet
(Unit: KRW-100MN) (Unit: KRW-100MN)

11,222 100.0 12,524 100.0 11.6 6,887 8,340 9,958 19.4

6,880 61.3 7,381 58.9 7.3 26,226 26,908 26,325 (2.2)

4,341 38.7 5,143 41.1 18.5 33,113 35,248 36,283 2.9

4,021 35.8 4,487 35.8 11.6 6,890 6,106 12,759 109.0

321 2.9 656 5.2 104.5 13,848 16,248 10,282 (36.7)

118 1.1 242 1.9 104.3 20,739 22,354 23,041 3.1

45 0.4 (440) (3.5) (1,072.2) 12,374 12,894 13,242 2.7

Source : Company Consolidated Financial Statement (Subsidiary Company : Sanchung Beverage(KOR), LOTTE Akhtar Beverage Limited(Pakistan))
11