investor relations 2015. 4q

Investor Relations 2015. 4Q

1. Company Overview

2. Company History

3. Assets and Liabilities

4. Organization Chart

5. Stock Ownership

6. Product Portfolio

7. Brand Power

8. Intellectual Property

9. Overseas Plants

10. Overseas Sales

11. Logistics Networks

12. Growth Strategy

13. Business Model

14. Sales and Profit(Consolidated)

15. Geographical Sales Mix

16. Appendix

Certain information contained in these materials represents or is based on forward-looking statements or information. Forward-looking statements are inherently

uncertain and changing factors, general or specific, may cause events or results to differ from those discussed in the materials. Therefore, undue reliance should not

be placed on such statements or the conclusions drawn from them.

Contents

3

Company Overview

Name Lock&Lock Co. Ltd.

CEO Joon-il Kim, Sung-Tae Kim

Establish 1978. 10. 1.

IPO 2010. 1. 28. (KOSPI)

Share Outstanding 55,000,000 (Face value 500 KRW)

Capital 27,500,000,000 (KRW)

Number of Employees 4,563 (Including overseas employees)

Logistics Center in Korea Asan(Automated logistics center), Ansung

Overseas Plants China(Suzhou, Weihai2), Vietnam(DongNai, VungTau)

Overseas Branches

China(Shanghai, Shenzhen, Beijing, Shandong, Guangzhou)

Vietnam (HoChiMinh, Hanoi)

Indonesia, Thailand, Germany

Homepage www.locknlock.com

Lock & Lock Investor Relations 2015

[ Update on 2015. 12. ]

Lock & Lock Investor Relations 2015 4

Company History

1978. 10 Kukjin Distribution founded.

1998. 10 Lock & Lock food storage products introduced.

2004. 06 Factory completed in Asan, Korea.

2004. 10 Chinese factory completed in Weihai.

2006. 05 Beijing office opened.

2006. 09 Signed an MOU with Zen Hankuk Co in chinaware

development & sales.

2006. 11 2nd Chinese factory completed in Weihai.

2007. 10 3rd Chinese factory completed in Suzhou.

2008. 01 1st directly-managed domestic flagship Shop

opened in Seohyun, Korea.

2008. 04 1st directly-managed Vietnamese flagship Shop

in HoChiMinh City, Vietnam.

2009. 02 Sales entities established in Vietnam.

2009. 04 Factory completed in DongNai, Vietnam.

2009. 07 Sales entities established in Indonesia.

2009. 12 Sales entities established in Cambodia.

2010. 01 Listed on KOSPI.

2010. 03 Established a locally incorporated sales unit

in HoChiMinh, Vietnam.

2010. 11 Established a locally incorporated sales unit

in Frankfurt, Germany.

2011. 02 1st franchise opened in Korea.

2011. 11 1st franchise opened in China.

2012. 04 Lock & Lock Living constructed in Vietnam.

2012. 08 Cookware factory completed in VungTau, Vietnam.

2013. 04 Baby products launched in China.

2014. 09 Sung Tae Kim, take up co - CEO in Sept.

1,729 1,817 1,654

1,165

29.6% 29.5%

26.2%

18.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2012 2013 2014 2015

Liability Liability to Equity Ratio


Assets and Liabilities (Consolidated)

(unit : 100mm, KRW) (unit : 100mm ,KRW, %)

7,579 7,970 7,957

7,565

2012 2013 2014 2015

Assets


Organization Chart

Inspection Division

product development

domestic operations Ⅰ

Overseas sales

communication

administration

production

financial administration

sales

production

sales

production

Overseas offices Korea China Vietnam

[ Update on 2015. 12. ]

sales

domestic operations Ⅱ

administration


Stockholder stocks

holdings

The largest stockholder (include affiliated person)

63.73%

Small stockholder 32.25%

Others 4.02%

Stock Ownership

[Update on 2015. 12]

The largest stockholder (include affiliated person)

63.7%

Others

(Corporation)

2.7%

Institutional

investors

9.4%

Individual stockholder

21.9%

Foreigner

2.3%

8

Food storage containers (L&L classic, L&L ovenglass, etc)

Outdoor (L&L aqua, L&L hot and cool, etc)

Household items (L&L living box, Inplus, etc)

Cookware (L&L Cookplus, Hard&Light etc)

Kitchen appliances (L&L taste, L&L cutlery, etc)

Character products (Kitty, Marvel, Disney, Hello bebe)


Product Portfolio


L&L have been ranked no.1 for 4 years in C-BPI - Airtight containers , thermos

K-BPI No. 1(for 12 years)

KWCI(Korea Well-Being Consumer Index) No. 1(for 7 years)

KPEI(Korea Purchase Ease Index) No.1

Brand Power

10 Lock & Lock Investor Relations 2015

Intellectual Property

Property Procedure Korea Overseas

Patents Application 1 1

Registered 4 22

Utility Models Application - 3

Registered 5 3

Designs Application 42 49

Registered 218 341

Trademarks Application 27 163

Registered 263 685

Service Mark

Application 3 0

Registered 22 6

[ Update on 2015. 12 ]


Overseas Plants

▪ Facilities : Injection Molding Machine 53, ISBM 3

▪ Production capacity : 101,287,500 PCS /year

▪ Product line : Plastic ∙ Beverage Container, Trash can, etc.

▪ Facilities : Injection Molding Machine 92

▪ Production capacity : 124,246,000 PCS/year

▪ Product line : Plastic ∙ Beverage Container, etc.

[Manshan]

[Suzhou]

[DongNai]

China

▪ Facilities : Injection Molding Machine 69, ISBM 9, EBM 1


▪ Product line : Plastic ∙ Beverage Container, Inplus, etc.

▪ Facilities : Injection Molding Machine 53, ISBM 3


▪ Product line : Plastic ∙ Beverage Container, Character Product, etc.

Vietnam

[VungTau]

- Cookware


▪ Product line : Plastic ∙ Hard & light, Salong, etc.

[VungTau]

- Injection


Overseas Sales

Europe

0.7%

China

47.3% America

9.0%

Domestic

25.8%

Asia

17.3%

China(Shanghai, Beijing, Shenzhen, Shandong,

Guangzhou)

Vietnam(HoChiMinh, Hanoi)

Indonesia(Jakarta)

Cambodia(Phnom Penh)

Thailand(Bangkok), HongKong

Germany(Frankfurt)

[Ge

ogra

ph

ical S

ale

s ]

[ Bra

nch

es ]

[ Updated on 2015.4Q. ]


Distribution Networks

Lock&Lock

Brand shops Hyper

markets Wholesalers

Corporate customers

TV shopping

On-line Franchise


Growth Strategy

• Accelerate our market into 2nd and 3rd tier cities in China.

- Expected to grow online sales due to expansion of

local online retail industries and online transaction

promoting policies.

- Expanding retail coverage in franchises and wholesalers.

• Grow revenue in Vietnam.

- Increase of total market volume by entering multinational

corporations.


Growth Strategy

• Diversifying items for exclusively available at on-line stores.

• Developing effective mobile marketing strategies and creating mobile -friendly contents.

• Interactive communication with customers.

Plan integrated marketing communication by using SNS.

• Raise brand awareness with K-Stars.


Business Model

[ Lock & Lock moved beyond its image as a container company by adopting a “T-shaped” growth

strategy to expand the scope.]

Diversifying material & application.

Expending products category into character products and kitchenware.

- Differentiation by our well-established brand image of “safe” and “fresh”.

- High correlation with current business.

- Sharing distribution channels and customers.

Expanding Product Category Kitchenware Household/Children

Diversifying material & application

Cutlery Cookplus

Living Box

Inplus

Out door

Character products

Kitchen goods

Classic

Special

Bisfree

Glass


Sales and Profit(Consolidated)

(unit : 100mm, KRW)

Restructuring

to Improve the

profitability

* Operating profit and net profit : Right vertical axis.

3,862

4,761 5,084 5,017

4,216 4,071

796 779

721 709

273 353

660

506

598

450

150 125

-200

100

400

700

1,000

1,300

0

2,000

4,000

6,000

2010 2011 2012 2013 2014 2015

Sales Operating Profit Net Profit

2011 2012 2013 2014 2015년

China 44.6% 51.3% 54.6% 45.4% 46.7%

Korea 35.6% 30.8% 26.2% 32.6% 27.4%

Asia 11.1% 11.8% 11.6% 14.1% 17.8%

etc 8.7% 6.1% 7.7% 7.9% 8.2%


Geographical Sales Mix

* K- IFRS Consolidated, Region Breakdown

(unit : %)

China, 46.7%

Korea, 27.4%

Asia, 17.8%

etc, 8.2%


Quarterly Sales and Profit (Consolidated)

Balance sheet(Consolidated)

Appendix

20

[unit : mm, KRW, %]


Quarterly Sales and Profit (Consolidated)

(unit : 100mm, KRW)

2014 2015

YoY QoQ 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Sales 110,922 102,842 101,670 106,178 89,122 104,454 103,618 109,892 3.5% 6.1%

COGS 60,615 54,559 60,425 60,805 46,554 56,372 56,362 58,162 -4.3% 3.2%

Gross Profit 50,308 48,283 41,245 45,373 42,567 48,082 47,256 51,730 14.0% 9.5%

Sg&A Expenses 42,260 38,141 39,088 38,400 36,542 38,413 40,787 38,565 0.4% -5.4%

Operating Profit 8,048 10,142 2,157 6,972 6,025 9,668 6,469 13,165 88.8% 103.5%

Pretax income 7,782 8,911 3,592 6,007 5,543 9,212 3,298 6,605 9.9% 100.3%

Net Profit 6,732 8,621 1,026 -1,403 3,424 3,877 1,411 3,836 373.4% 171.8%

1,109 1,028 1,017 1,062

891

1,045 1,036 1,099

80 101

22

70 60

97

65

132

67 86

10

-14

34 39

14 38

-50

0

50

100

150

0

300

600

900

1,200

1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15

Sales

OP

NP

[Sales] [OP, NP]

[unit : mm, KRW]


Balance Sheet Summery(Consolidated)

2015 2014 Gap

Current assets 367,062 391,930 -24,868

Non-current assets 389,407 403,818 -14,411

Total assets 756,470 795,748 -39,278

Current liabilities 110,896 148,758 -37,862

Non-current liabilities 5,644 16,619 -10,975

Total liabilities 116,540 165,377 -48,837

Issued capital 27,500 27,500 -

capital surplus 314,809 314,809 -

capital adjustment -23,371 -23,371 -

Other Comprehensive income accumulated -8,482 -13,583 5,101

Retained earnings 329,394 324,959 4,435

Non-controlling Interest 80 57 23

Total equity 639,930 630,370 9,560

Total equity and liabilities 756,470 795,748 -39,278

investor relations 2015. 4q

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