Global Retail Company

Company Overview

April 2013

2 emart Co.

Introduction

Having started a new history in the shopping culture by opening the first Korean General

Merchandising Store in 1993, emart has been rewriting the history of distribution industry in Korea

through ceaseless challenges and new attempts.

By taking over Walmart Korea and entering the Chinese market, emart is competing shoulder to

shoulder against the world’s leading companies. Furthermore, based on the core competencies in

the distribution industry, emart is advancing into the global stage.

Home Plus

Lotte Mart

3 emart Co.

emart History

Shinsegae Group, the largest retail group, opened

up a new era in the Korean retail industry with the

opening the 1st emart store in Chang-dong, Korea's

first GMS (General Merchandising Store), in 1993.

Afterward emart opened the 1st overseas store in

Quyang, Shanghai for the first time as a Korean

retailer. And it laid the groundwork for stepping

into the huge emerging Chinese market.

1993 ~ 1999

1993.11 Opening of the emart Chang-dong branch,

Korea's first discount store

1997.02 Opening of the emart store in Quyang,

Shanghai, the first emart store in China

2000 ~ 2011

2004.08 Launching of the emart online shopping mall

(www.emartmall.com)

2010.05 Opening of the 25th emart store in China,

Caobao branch (Shanghai)

2010.11 Opening of the 1st club store called Traders

store in Korea, Guseong branch

4 emart Co.

emart Group Affiliates

Starbucks Coffee Korea (JV

with Starbucks Int’l)

Founded: 1997. 09

Ownership: 50.0%

Business hotel with the

longest history in Korea

Founded: 1914. 10

Ownership: 98.8%

Chinese emart subsidiaries

Founded: 1997. 02

Ownership: 83.3-100%

Engages in construction of

commercial facilities

Founded: 1991. 09

Ownership: 32.4%

General food distribution

company

Founded: 1995. 07

Ownership: 52.1%

IT service and solution

provider

Founded: 1997. 04

Ownership: 29.0%

Distributor of wine from all

over the world

Founded: 2008. 12

Ownership: 100.0%

‘In-house’ bakery located in

Shinsegae stores

Founded: 2005. 01

Ownership: 100.0%

5 emart Co.

Applicable Group Stores - Shinsegae

Shinsegae

Department Store

(9 Stores)

Shinsegae Chelsea

Premium Outlet

(2 Malls)

Shinsegae

Young Plaza

(Over 150 Stores)

Traders/emart Everyday

(Over 7/145 Stores)

6 emart Co.

Financial Highlights

Sales (in Billion USD) Operating Profit (in million USD)

Shinsegae ranked 91st global retail company at stores.org ranking (2009)

• emart portion was over 80% of total input for ranking

7 emart Co.

emart Business Portfolio

The 1st Store Changdong, opened

on 12th Nov, 1993

Now 150 Stores

The 1st store SangDo, opened on

June 30th 2009

Now 145 Stores

The 1st Store Gwangmyoung,

opened on 24th Jan, 2007

Now 4 Stores

emart emart Metro emart Everyday

emart Traders emart online mall Molly’s, Payless, Boons

Non membership, a club

warehouse-type discount store

Now 7 Stores

Launched Smartphone APP

(emart Today, MENU, Shopping

Planner)

www.emartmall.com

8 emart Co.

emart Strengths

Complete New Pricing Policy MD / Sourcing Innovation

Establish Core Values Expand New Business for Future Growth

• Continue price revolution

• emart price leadership

• Increase EDLP sales and

contribution

- Increase customer awareness

• Strengthen online business

- Become No. 1 online

supermarket

- Customer-oriented user

environment and product

competitiveness

• New business development

- Specialty stores

(ex.SportsBigTen)

• Create customer-focused

store format

- Strengthen customer

communication

• Increase emart brand value

• Improve product

competitiveness through

logistics innovation

• Reorganize sourcing to be

category-focused

- Strengthen competitiveness in

each product category

• MD quality management

innovation

• Strategic operation and

expansion of overseas

sourcing

9 emart Co.

emart Strengths

Expansion of emart Traders Establishment of Wholesale Network

• Advance into product distribution business

- Total 95,000 supermarkets in Korea (estimated market

potential equivalent to KRW20 trillion)

- E·CLUB : increase product distribution to independent /

corporate supermarkets

• Consider entering other wholesale service business

markets

- Maintenance, repair and operation (MRO), wholesale

distribution, system development, etc

• Expand emart Traders, a new wholesale format

preferred by independent store operators

- Provide mass products at low prices and support for

independent store operators

- The first branch (Guseong store)’s average monthly

sales increased by 122% to KRW12.7 billion

• Now has 7 stores in total working separate from

emart operations and buying

- Keep building new retail format of business model from

emart and getting more trust by the customers

10 emart Co.

emart Private Label

11 emart Co.

emart Stores store building

12 emart Co.

emart Stores Consumer Electrics Area

13 emart Co.

emart Stores Home and Houseware Area

14 emart Co.

emart Stores Beauty care Area

15 emart Co.

emart Stores Fresh Area

16 emart Co.

emart Stores Organic Food Area

17 emart Co.

emart Stores Home & Fashion Specialty Store called JAJU

18 emart Co.

emart Stores Wine Area

19 emart Co.

emart Stores Healthy food area

20 emart Co.

emart Stores Molly’s Specialty Store for Pet items

21 emart Co.

emart Stores Sports Big ten for Sports area

22 emart Co.

emart Stores – Traders

23 emart Co.

emart Stores – Traders

24 emart Co.

emart Stores – Traders

25 emart Co.

Global Sourcing Overview

Grow all Emart’s format sales and profit by providing the best item and supplier solutions for the

merchandise that each of our buyers and customers’ want and providing our suppliers opportunity for

sustainable growth based on the relationship built on 5 things; EDLC, quality always, service excellence,

ethical integrity and environmental standards

Global Sourcing Mission

6 Global Sourcing Overseas Offices

USA LA office

Vietnam Hochiminh office

China Shanghai/ Shenzhen Office

Korea Seoul office

Direct Imports from 42 countries

EU FOB Penetration (2012): 10.3%

Italian Item: Frozen potatoes, Shoes, Grape seed oil, Sauce, Spaghetti, Olive oil

Japan Tokyo office

End of Document