Company Introduction - Hite Jinro Group -

(1)

1

Company Introduction - Hite Jinro Group -

Overseas Business Head Office America/Europe Team

(2)

2

▪ Contents

Ⅰ. Greetings

(p3~p4)

▪Dear Friends (P3)

▪Message from the chairman (P4)

Ⅱ. About our Group

(p5~p10)

▪Group History

▪Group Vision

Ⅲ. About Hite Brewery

(p11~p17)

▪Hite Brewery Overview

▪Products of Hite Brewery

Ⅳ. About Jinro Soju

(p18~p27)

▪Jinro Soju Overview

▪Products of Jinro

Ⅴ. About our Subsidiaries

(p28~p30)

▪Seoksu & Puriss overview

▪Imported spirits and wine Overview

▪Other subsidiaries

Ⅵ. Other information

(p31~p36)

▪Research and Development

▪Group CSR activities

▪Group Governance hierarchy

▪Group annual Report (’10~’11)

(3)

▪ Dear Friends

Always be with customer

Hite-Jinro group has always been with customer, has been grown to be the representative alcoholic drinks company in Korea.

We had the honor to maintain the No. 1 position in domestic market for both beer and Soju thanks to all of your love and encouragements.

To the Broader World

And overpassing the domestic No.1

We promise you to give the utmost pleasure and satisfaction, thinking every and each one of our customers as our precious friends.

3

(4)

▪ Message from the chairman

From a national company to a Global company

I’d like to express my sincere gratitude to all of you who have always encouraged us.

The history of Hite-Jinro group represents the history of Korean alcoholic beverage industries. Jinro was established with pure national capital in 1924 and Hite was established as the 1^stbeer company in Korea in 1933. Hite and Jinro have continued to grow to be the representative alcoholic beverage companies in Korea; taking the highest quality and customer satisfaction as the top priority while sharing good and bad times with the nation.

Thanks to your love and encouragement, Hite-Jinro group has maintained the top ranking position in domestic beer and Soju markets, and gained excellent competitiveness in natural mineral water and whisky markets also.

Hite leads the domestic beer market and Jinro, the No. 1 Soju and also spirit manufacturer on a global basis overwhelms domestic Soju market. They both born as the No.1 alcoholic beverage company, after becoming one

family in 2005. In addition, establishment of the holding company system in 2008 allowed us to enhance the transparency and corporate effectiveness.

Now, Hite-Jinro group is committed to realize our far- reaching dream of ‘To the broader world, overpassing the domestic No.1’. We will make ‘Hite’ and ‘Chamisul’ as the global brand, and concentrate on the business diversification, including the reinforcement of the natural mineral water business.

Alcoholic beverage itself is all about our ‘life’ and our

‘culture’. We will lead the creation of new life culture, satisfy the expectation of our customers and shareholders.

In addition, we will also make a contribution to make a better society by supporting various social contribution activities and also cultural and sports events. The future belong to those who believe in their dream. We hope you to watch our challenges and determination to be a global company from a national company and we promise you to give you joy and satisfaction with our best quality and service. All the time.

Sincerely

Mundeuk, Park - Chairman

₄

(5)

▪ Group History

Hite-Jinro group’s creation of mythology continues…….

1924 ▫ Established Jincheon Distilling company (3^rdOct): Produced 1^stJinro Soju. (Yonggang, Pyeongannamdo)

1933 ▫ Established the 1^stbeer company in Korea-Corporate name:

Chosun Brewery Co., Ltd.

1969 ▫ Park Kyungbok took office as CEO of Chosun brewery.

1970 ▫ Jinro ranked No.1 in Soju market defeating Samhak. (main rival) 1973 ▫ Jinro established the institute of alcoholic beverage for the 1^st

time in Korean alcoholic beverage industry.

1977 ▫ Jinro Soju made inroads into the Japanese market.

1980 ▫ Jinro won the gold awards in 6 sections at the 11^th IWSC.

Jinro won the gold awards in 8 sections at the 18^th Monde Selection.

1984 ▫ Jinro started the operation of Icheon General alcoholic beverage complex.

1989 ▫ Jinro donated to a hospital to Kkotdongnae(Flower village) at Eumseong, Chungcheongbuk-do.

5

(6)

1991 ▫ Park Mundeuk took office as the CEO of Chosun Brewery.

▫Chosun Brewery launched a black beer Stout.

1993 ▫ Chosun brewery launched ‘Hite’.

▫Jinro launched ‘Jinro Gold’.

▫Established Hiscot.

1996 ▫ Hite recaptured the No.1 ranking the domestic beer market.

1997 ▫ Chosun brewery finished the construction of Gangwon Plant.

1998 ▫ Chosun brewery changed the corporate name to Hite.

▫Jinro Launched ‘Chamisul’.

1999 ▫ Yoon Jongwoong took office as the CEO of Hite.

2000 ▫ Park Mundeuk too the office as the chairman of the Hite.

2001 ▫ Jinro received the congratulatory trophy from the Government in memory of its 70Mil USD exportation to global market.

2002 ▫ Hite accomplished the sales of 10 billion bottles.

▫Hite development undertook the ‘Golf Club 700’ and changed the name to ‘Blue Heron Golf Club’.

▫Hiscot launched Scotch named ‘Lancelot’.

▫Jinro Launched an plum spirits named ‘Maehwasu’.

2003 ▫ Hite celebrated its 70^thanniversary of the establishment.

2004 ▫ Jinro celebrated its 80^th anniversary the establishment.

6

(7)

2005 ▫ Jinro ranked No.1 for 7 consecutive years in the Japanese Soju market.

▫Hite and Jinro become a family and established Hite-Jinro Group.

▫Jinro finished the court receivership and Ha Jinhong took the office as the CEO.

2006 ▫ Established Seoksu and Puriss, a mineral water company and Choi Kwangjun took the office as the CEO.

▫Chamisul accomplished the sales of 10 billion bottles.

▫Jinro Launched ‘Chamisul Fresh’.

▫Hite launched all malt beer ‘Max’.

▫Hiscot launched new Scotch named ‘Kingdom’ 21 years old.

2007 ▫ Kim Jihyun (management and sales) and Ha Jinhong (production) took the office as the CEO of Hite.

▫Yoon Jongwoong took the office as the CEO of Jinro.

▫Yang Injip took the office as CEO of the Jinro Japan.

▫Jinro launched a high quality 100% pure rice distilled Soju named

‘Ilpoom Jinro’.

▫Hite launched a new product ‘S’ beer, draft beer ‘Max Draft’ and re-launched a premium black beer ‘Stout’.

▫Hite-Jinro group announced the new ‘Ethics Management’ policy.

7

(8)

▫Lee Changkyu took the office as the vice chairman of the group.

▫Hiscot launched ‘Kingdom’ 12 and 17 years old.

▫Established a new corporation in China, ‘The Hite-Jinro group.

China’ and Lee Chungsu took the office as the CEO.

2008 ▫ Jinro ,ranked No.1 in the international distilled market for 7 years.

▫Hite participated as the official sponsor of the Korean Soccer Association.

▫Jinro launched the 1st seasonal Soju containing the deep water, Chamisul fresh summer, a Soju made of the deep water, Jinro J and Jinro Donguibogam Bokbunjajoo;Herbal wine.

▫Jinro Japan celebrated the 20th anniversary of its establishment.

▫Jinro Ilpoom Jinro, Maehwasu and Chamisul fresh won the Grand Gold, the Silver and the Bronze respectively at the

Monde Selection.

▫Established the holding company system. (holding company: Hite Holdings, Business company: Hite)

▫Hite proclaimed GMO Free for the first time in the Korean alcoholic beverages industry.

▫Seoksu and Puriss launched edible deep water, Aqua Blue.

▫Jinro and Hite ranked No.1 in NCSI (National Customer

Satisfaction Index) for 11 and 9 consecutive years, respectively.

▫Held the 9th Hite Cup Ladies Professional Golf Championship. 8

(9)

2009 ▫ Hite joins as a new member of 1 billion USD sales company.

▫Establishes a Group Baduk(Korean checker game) team.

▫Reinforce supply installations at Jeonju Plant.

2010 ▫ Introduce group ERP system.

▫Jinro launches Makgoli and 10 years old ‘Tarudashi’ Soju in Japanese market.

▫Hite launches trend-leading beer ‘Dry Finish D’.

▫Ilpoom Jinro award Grand Gold at 2010 Monde Selection.

▫Ranked as No.1 in the global distilled spirits market for consecutive 9 years.

2011 ▫ Group qualifies for the ‘Greenhouse Gases Inventory Certificate’.

▫Launches Korea’s first-ever limited edition of Max Special hop.

▫Hite-Jinro group as a single business entity was launched.

officially.

9

(10)

▪ Group Vision

To the World-Class Global Company of Alcoholic beverages with Pride and Responsibility - Represent Korea

No.1 Company

National Company

Global Company

No. 1 Company holds pride of the highest quality

The Hite-Jinro, the no.1 alcoholic beverage company in Korea is continuously running on the road of a true leader toward the vision of a global company that pursues the humanized balance between alcoholic beverages and life/culture.

True National Company places customer’s satisfaction as a top priority

The Hite-Jinro has raised 80% of the customers love. Hite-Jinro Group is well aware that without customer’s unchanging love, today’s Hite-Jinro Group wouldn’t have existed. Our love and appreciation of devoted customers is to offer better products and become a better company.

Global Company of Alcoholic Beverages is based on creativity and trust

Hite-Jinro intends to become a global company, overpassing current reputation as the No.1 company in domestic market. The entire team is doing their best at this very moment to change today's dream to tomorrow’s reality.

10

(11)

The first beer company in Korea

□ The First Beer Company in Korea Established in 1933

Established in 1933, Hite, the first beer brewing company in Korea, celebrated it’s 79^th anniversary of the establishment in 2012. Hite opened to the public in August 1973. It has accomplished a net income of over 10 billion KRW(Korea Won) for the first time in 1999 and in 2002, accomplished the sales of 100 billion KRW, achieving the appearance of a blue-chip company.

□ Hite-Jinro GROUP Established in 2005

Hite has achieved a high-speed growth amid the fierce competition with foreign alcoholic beverages companies. It became one family with Jinro; the No.1 domestic Soju company in July 2005. It then led to the birth of the largest general alcoholic beverages company in Korea. Hite, having the full-scale synergy effect with Jinro, is committed to meet the mid-and-

long-term goals to create a new corporate culture and to become the best alcoholic beverages specialized company in Asia.

□ History of Numerous New Records

Hite has created a new history with the products that leads the trend. Hite is the first non-thermal-treatment beer in Korea, made of 100% natural rock-bed water. Max, the delicious beer is the only 100% malt beer in Korea. S beer is the first beer in Korea that contains fiber. Stout is the only black beer domestically produced. And Max Draft, the first brand contained in the stainless keg in Korea. These are just some of the examples that shows Hite has always produced the best products consumer wants.

▪ Hite brewery Overview

11

(12)

No.1 Beer Success Myth

□ No.1 in Beer Industry in 1996

Hite, which held 30% of the market share until the mid 90’s has transformed itself with customer first management, which cares for customers with enterprising and active spirits, escaping from the past conservative management style. Hite, made of 100% natural rock-bed water and created by endless researches and effective brand strategy was ranked No.1 in 1996.

Three years after the launch, it broke the wall of market shares by 50% in 1999, amid the fierce competition with foreign alcoholic beverages companies, thereby continuously expanding the market.

□ No.1 in NCSI for 9 Consecutive Years

Hite was selected as the No.1 company in beer section at the NCSI (National Customer Satisfaction Index) in 2008 and maintained its No.1 ranking for 9 consecutive years. NCSI, developed by the Korea Productivity Center and Michigan University in the US, and directly evaluated by customers, is the best evaluation system in Korea that measures product competitiveness and customer satisfaction.

□ Hite Joined the Net Sales 1 Trillion Club For the First Time in the Domestic Alcoholic beverages Industry

Hite, currently the No.1 domestic beer company, passed the net sales of 960 billion KRW in 2007. In 2008, it achieved a higher level of accomplishment by joining the 1 trillion net sales club for the first time in the domestic industry of alcoholic beverages. Strong product competitiveness of Hite which accomplished the sales of 20 billion bottles as a single brand for the first time in Korea, and its brand power acknowledged in the international markets enabled these excellent results.

12

(13)

▪ Products of Hite Brewery

Representative Beer in Korea - Hite

Think of Consumers!

Hite is the first non-thermal treatment beer in Korea.

Hite introduced the ‘Brand Keeper System’. Its Hama Can was specifically developed for the mouth structure of Korean customers, and introduced the thermometer -sensitive mark for the first time in Korean domestic beverage industry. Through such continuous passion and efforts on the renovation of its products, Hite fulfills customer’s satisfaction.

▫ ALC %: 4.5%

▫ Container / SKU / Vol / LPP/ LPC

1) Bottle: 640㎖x12btls @ 56case / 1,300case 500㎖x12btls @ 70case / 1,550case 330㎖x24btls @ 40case / 1,000case 2) Can : 500㎖x24can @ 56case / 1,450case 355㎖x24can @ 80case / 2,100case 250㎖x24can @ n/a / 2,300case 3) Pet : 1,600㎖x6btls @ n/a / 1,300case

1,000㎖x12btls @ n/a / 1,024case 4) Draft : 20,000㎖x1keg @ n/a / 600keg

▫Price proposition: variable according to the market (To be discussed further)

▫Expiration date: 1 year after the date of production

*Note: LPP-Load per pallet, LPC-Load per 20 feet container(un-palletized)

Hite beer

Monde Selection 2012

Live with passion

13

(14)

The first-ever all malt beer in Korea, Delicious Beer - Max

The Only 100% Malt Beer in Korea!

Rich taste with 100% malt and ample, pleasant scent of Cascade hop. Its more expensive than general aroma hop, but it's worth it for this well harmonized beer.

Delicious Beer!

New savory and smooth flavors harmonizes perfectly with various kind of foods. Delicious beer, verified by numerous consumer test, makes the food more delicious.

▫ ALC %: 4.5%

1) Bottle: 640㎖x12btls @ 56case / 1,300case 500㎖x12btls @ 70case / 1,550case 330㎖x24btls @ 40case / 1,000case 2) Can : 500㎖x24can @ 56case / 1,450case

355㎖x24can @ 80case / 2,100case 3) Pet : 1,600㎖x6btls @ n/a / 1,300case

1,000㎖x12btls @ n/a / 1,024case 4) Draft : 20,000㎖x1keg @ n/a / 600keg

Max beer

European beer star Monde Selection 2012

14

Live with passion

(15)

The Ultimate Coolness in beer - Dry Finish D

Taste its unique Coolness!

Dry Finish D, with its improved refreshing aroma and unique bottle shape, proved to be the most favored and trendy beer in Korea among 20’s. Using specially cultivated dry yeasts, Dry Finish D keeps its sharp, refreshing and cool taste from the moment you drink it to the moment you swallow it.

▫ ALC %: 5.0%

1) Bottle: 500㎖x12btls @ 70case / 1,500case 330㎖x24btls @ 40case / 1,000case 2) Can : 500㎖x24can @ 56case / 1,450case

355㎖x24can @ 80case / 2,100case 3) Pet : 1,600㎖x6btls @ n/a / 1,300case

Dry Finish D beer

15

Live with passion

(16)

The first beer containing fiber in Korea – S

Cleaner Taste with Fiber!

S Beer, the first premium beer containing fiber in Korea, has changed the concept of beer. S Beer, contains 0.5g fiber per 100㎖, and has a smooth, clean taste.

Icon of New Style Leader!

From the refined label design reflecting the newest trend and cool bottle in emerald color, to the logo type in the shape of beautiful body line and convenient twist cap, it is the icon of the trend setter, symbolizing young and progressive style.

▫ ALC %: 3.8%

1) Bottle: 330㎖x24btls @ 40case / 1,000case 2) Can : 355㎖x24can @ 80case / 2,100case 3) Pet : 1,600㎖x6btls @ n/a / 1,300case

1,000㎖x12btls @ n/a / 1,024case

S beer

16

Live with passion

(17)

The first and only dark beer brand from Korea – Stout

More Froth!

What determines the taste of beer is malt! Our new Stout uses high-quality legitimate black malt for a deeper taste and more foam.

Meet the Beauty of Black Label!

The black label of Stout where the black color symbolizes black beer and the gold color of the eagle shape are well matched. Show your own style and value in a trendy way with Stout.

▫ ALC %: 5.0%

1) Bottle: 330㎖x24btls @ 40case / 1,000case 2) Can : 355㎖x24can @ 80case / 2,100case 3) Pet : 1,600㎖x6btls @ n/a / 1,300case

1,000㎖x12btls @ n/a / 1,024case

Stout beer

17

Live with passion

(18)

18

Premium Beer Clean-skin

Natural beer!

Clean skin beer, one of the premium range beer without preservatives aims to be natural beer only with the pure bouquet of selected hop and barley.

Good balances with various selection of foods!

Brewed by Korea’s Leading brewery Hite, Clean Skin beer is a full strength beer with diverse character.

With sophisticated and refined flavor, this refreshing alcoholic beverage can be enjoyed either on its own or as an accompaniment to a broad variety of foods.

▫ ALC %: 4.5%

1) Bottle: 330㎖x24btls @ 40case / 1,000case

▫Price proposition: Variable according to the market (To be discussed further)

Clean Skin beer

18

Live with passion

(19)

19 19

Anytime, Anywhere, Anyone Enjoy Hite Zero

Malt Beverage created through 80year’s brewing craftmanship

Hite Zero which delivers the crispy froth and smooth swallow of the beer is first-ever non-alcoholic beverage in Korea made by Hite-Jinro’s 80 years brewing know- how.

Enjoy the party with 0% alcohol

Delivering the typical refreshing aroma of the beer, Hite Zero is a alcohol-free malt beverage that can be enjoyed by anybody with no stress.

Highest quality European Aroma Hops

Using only the highest quality European Aroma Hops, and first drop of worts, Hite Zero boasts of its rich taste and bouquet of barley.

▫ ALC %: 0.0%

1) Can: 355㎖x24can @ 40case / 2,100case

▫Price proposition: Variable according to the market (To be discussed further)

Hite Zero NAB (Non-Alcoholic Beverage)

19

Live with passion

(20)

▪ Jinro Overview

Representative Korean Soju

□ Pure National Company Established in 1924

Jinro Soju is indeed a pure national spirits company that has endured both joyful and sorrowful moments.

Jinro, established in 1924 with a pure national capital, is a proud company that has grown as a team, and as a name in Korean refreshments alcoholic drinks business.

□ Jinro, No.1 player in the Domestic Soju Market Since 1970

Jinro, born in 1924, ranked No.1 in domestic Soju market in 1970 after defeating fierce competition among Soju companies and since then, has dominated the market for 40 years. In 1998, Chamisul, considered to be the best brand in the domestic Soju market ever since, was launched, which laid the foundation of the re-takeoff of the company.

Chamisul Fresh launched in August 2006 and Jinro J, launched in September 2008 are carrying on the genealogy of representative Korean Soju.

20

(21)

No. 1 Spirits in the World

□ 10 Years after Chamisul launching, achieved the total sales of 14 billion bottles

Chamisul, launched in October 1998, celebrated its 10^th anniversary and has made an epoch of total sales which reached total volume of 14 billion bottles in 2008. It is because of the clear and clean taste of Jinro Soju distilled from a purely distilled spirits and its distinctive product selling power. As well as 85 years craftsmanship and advanced technology, it has

been recognized successfully among many customer not only in Korea but also throughout the whole world.

□ Various international spirits awards competition acknowledged Jinro’s distillation technology to be on an international level

Maintaining No.1 ranking in the international distilled spirits market for 7 consecutive years, being No.1 player in the Japanese Soju market for 7 consecutive years, winning Gold Prize in 6 sectors at the 11th International spirits Fair, winning Gold Prize in 8 sectors at the 18th Monde Selection, winning Grand Gold to Ilpoom Jinro at 2008 Monde Selection, and winning another Grand Gold to Jinro Donguibogam Bokbunjajoo at 2009 Monde Selection, all these awards proves the internationally renowned reputation of Jinro’s distillation technology and craftsmanship.

□ Soju registered in the Merriam-Webster university Dictionary in 2008

Jinro has also been gaining public favor in the international market, and in 2008, the record-breaking performance of Chamisul, in particular, has enabled Soju to be registered at the Merriam-Webster Dictionary; the most prestigious dictionaries in the US. This officially proves that Korea is indeed the home of Soju.

21

(22)

▪ Products of Jinro

Synonym for clean Soju - Chamisul Classic

Jinro's Chamisul Classic is the first pure and clean Soju f iltered four times with charcoals made from bamboo. Thi s filtration method eliminates any harmful substances or impurities leaving only the clean and smooth tasting Soj u. Chamisul Soju brand is a legend in Korea for its numb er sold in the shortest amount of time in all brand catego ries.

▫ ALC %: 20.1%

▫ Container / SKU / Vol / LPP/ LPC 1) Bottle: 350㎖x20btls @ n/a / n/a

360㎖x20btls @ n/a / 1,250case 375㎖x24btls @ 42case / 1,050case 750㎖x12btls @ 55case / 1,000case 2) Pet : 1,750㎖x8btls @ 50case / 1,250case 3) Pack: 200㎖x40packs @119case / 1,344case 4) Pocket: 200㎖x20btls @ 119case / 1,344case

▫Expiration date: 10 year after the date of production (Variable according to the storage conditions)

Chamisul Classic Soju

Silver

22

Live with passion

(23)

More clear and clean Soju - Chamisul

▫ ALC %: 19.0%

▫ Container / SKU / Vol / LPP/ LPC 1) Bottle: 350㎖x20btls @ n/a / n/a /

360㎖x20btls @ n/a / 1,250case 375㎖x24btls @ 42case / 1,050case 750㎖x12btls @ 55case / 1,000case 2) Pet : 1,750㎖x8btls @ 50case / 1,250case 3) Pack: 200㎖x40packs @119case / 1,344case 4) Pocket: 200㎖x20btls @ 119case / 1,344case

Chamisul Soju

Boasting of rich mineral contents and pure and clean ta ste, this natural alkaline Soju is refined with charcoals made from 3-year old bamboos grown in a clean zone of Mt. Jiri and southern coast of Korea. Milder version to Chamisul Classic, Chamisul is made with the natural sweetener from Finland for a cleaner and refreshing tas te. Additionally, the innovative Soju making technologie s enhance the effect of the natural bamboo charcoal ref inement processes resulting in even more “Fresh" Cha misul.

Silver

23

Live with passion

(24)

24 24

Sweet Soju that fits to everyone’s taste - Sodal

▫ ALC %: 16.9%

▫ Container / SKU/ VOL / LPP/ LPC 1) Bottle: 360㎖x20btls @ n/a / 1,250박스

* Note: LPP-Load per pallet, LPC-Load per 20 feet container(un-palletized)

Sodal Soju

The SOJU: Borne with 89 years craftmanship to everyone’s taste!

Through Hite-Jinro’s professional craftmanship in Soju- making, Sodal, with its 16.9% ABV, has a uniquely smooth flavor and silky swallow that just fits to everyone’s taste in every moment. ‘Sweet it is’ – Sodal

Interesting package artwork and good ingredients!

Sodal, with its improved quality achieved from clean bamboo charcoal filtration method using only the most clean bamboo from Namhae:Southern Clean Zone and taking advantage of selected xylitol to give a ‘kick’ to the whole flavor, has also strengthened its unique brand identity by adopting light orange-colored cap, calligraphic font and also by interpreting Jinro’s key brand image ‘Toad’ into a whole new different style.

24

Live with passion

(25)

Global Soju – Jinro 24

Our product Jinro24 is produced and marketed solely fo r international consumers. While it can be enjoyed on it s own, product Jinro 24 is used widely as a base for var iety of popular and trendy cocktails. Produced from the finest natural ingredients and best Soju making "know-h ow", Jinro is a perfect balance of pure, clean flavor with smooth finish. This distilled specialty, distinguished by it s yellow label has a neutral composition which lends its elf perfectly to fresh fruits, juices and mixers. Its alcohol content is just enough to give a "kick" to your favorite c ocktails but mild enough for an extended drinking exper ience.

▫ ALC %: 24.0%

750㎖x12btls @ n/a / n/a 1,750㎖x8btls @ n/a / n/a

Jinro 24

25

Live with passion

(26)

Aged Premium Soju - Ilpoom Jinro

Ilpoom Jinro is a 10YO distilled Soju with 23% abv by using the traditional Soju making method that ferments and distill pure rice. Ilpoom Jinro, made by the best technology on Jinro’s honor by keeping the pride of Korean Soju, was create for the customers who want the best quality Soju.

▫ ALC %: 23.0%

Ilpoom Jinro

26

Silver

Live with passion

(27)

Substantial Plum wine with reasonable price - Maehwasu

Jinro's Maehwasoo is a refined plum wine made from green plum extract processed in special freeze filtration system resulting in clean and smooth liquor. Unlike mos t plum wine, which can be too sweet and too strong, Jinro's Maehwasoo, has a very subtle sweetness and light plum flavor that is not too overbearing. While most plum wines are known to be highly priced, Maehwasoo is reasonable in price so everyone can enjoy the flavor and the benefit of the plum wine.

▫ ALC %: 14.0%

▫ Container / SKU / Vol / LPP/ LPC 1) Bottle: 375㎖x20btls @ 54case / n/a

300㎖x20btls @ n/a / n/a

Maehwasu

Silver

27

Live with passion

(28)

Mystique of Oriental wine - Jinro Bok Bun Ja Joo

Jinro Bokbunjajoo is a raspberry wine made from 100%

raspberry and medicinal herbs. Along with Jinro’s paten ted fermentation technology and filtration system, Jinro Bokbunja‘s finest ingredients are ripened via authentic r ed wine producing method to bring out the rich bouquet and natural flavors of the ingredients. Traditionally, Bok bunja wine is said to have additional benefits of prevent ing hypertension and promoting blood circulation.

▫ ALC %: 15.0%

1) Bottle: 375㎖x12btls @ 77case / 1,933case

Jinro Bok Bun Ja Joo

28

Live with passion

(29)

New Korean wave in wine, Rice Wine – Jinro Makguli

Jinro Makguli is a rice wine made from 100% Korean ri ce and purest spring water. The pure and finest ingredi ents along with traditional Makguli making artistry make s Jinro Makguli one of the best tasting rice wine in the market. Jinro Makguli contains 0% preservatives and wi th patented H.T.S.T. technology, Jinro Makguli has a lon ger shelf-life than other competitive brands.

▫ ALC %: 6.0%

1) Pet: 1,000㎖x12btls @ n/a / n/a (Green) 750㎖x20btls @ 48case / 830 (White)

Jinro Makguli

29

Live with passion

(30)

New Taste - Jinro House Wine

Jinro House Wine which captivated the taste of Korean customers for the last 40 years has been re-launched in February 2009. Pure grape wine liquid from Spain gives a cleaner and clearer taste.

▫ ALC %: 10.0%

Jinro House Wine

30

Live with passion

(31)

▪ Products of subsidiaries / Seoksu & Puriss

Containing only the Purest Water

Seoksu & Puriss is a new company established in 2006. Seoksu is ranked No.1 in the domestic natural mineral water market. It is produced Cheongwon-gun Chungcheongbuk-do; one of the three mineral spring areas in the world. Puriss is a healthy and delicious spring water that contains calcium, magnesium and other healthy minerals in balance. In addition, Aqua Blue , a premium deep sea water, is 100% chemical-free clean water , taken from the deep East Sea at 3386ft, an area that the sunlight does not reach. Diamant is a high-quality premium carbonated water with a clean and fresh taste. Seoksu & Puriss, is currently exported to 18 countries in the world, including Japan and the US.

31

(32)

▪ Products of Subsidiaries / Imported Spirits

Excellent Taste and Quality

Hite-Jinro group also has many strengths in imported spirits categories such as Scotch whisky and wine. With the launch of Lancelot in September. 2002, the crystal of the best blending by The Edrington Group; the reputable high-quality whisky making company in Scotland, Hite-Jinro made its own inroads in super premium spirits market. Our endeavor to take the market is continuing with new Scotch product Kingdom in November 2007. Hite-Jinro devotes itself to reach the summit of the whisky market. In particular, the entire product family of Kingdom (12, 17 and 21 years) won the Silver Medal at the 2008 IWSC. In addition, since May 2004, Hite-Jinro has introduced high-quality Californian cult wine, including Silver Oak, Barnett, Chimney Rock and Rutherford Hill, and in October 2007 it launched the famous Laboure-Roi; a 170 year old traditional European wine maker.

32

(33)

Hite Distillers /Alcohol

▪ Other subsidiary companies

Hite industry Hite

Development Jinro Soju

Hite Distillers

: A local company located in Jeonra-do, specialized Soju

making company with 50 year history, produces Hite Soju.

It also produces Bobae Soju Pet, Chindo-mono gatari, an export product and Mi-in.

Hite Alcohol is an alcohol producing company that pro duces 95% of fermented alcohols using many ingredi -ents such as rough malt, brown rice, tapioca, sweet potato, unhulled malt, and refines roughly distilled alco -hol.

Hite industry whose main bu -siness is bottle glass manu -facturing and label printing is a leader among packaging material industry.

Hite industry, with the labor- employer culture in harmony, co-existence, continuous tec -hnology development and process improvement, is com -mitted to secure the highest level of productivity in the industry.

Blue Heron Golf Club

: Currently being managed by Hite Development, is recognize -d as one of the most beautiful golf clubs in Korea.

Its clean image of the nature, considerate service, harmony among nature, culture and sports makes it a true superior natural gem.

East Course has a European strategic mood, while the West Course has a magnificent and aggressive feel. The Club House feels as though the nature and art is harmonized which doubles the pleasure of playing golf.

Jinro Soju

: Located in Masan-si, a clean city of Gyeongsangnam-do, was first established in August 2007. It was developed in order to take charge in producing export -ation spirits.

Currently, products of Jinro Soju are exported to 50 countries in the world, including South East Asia and Europe.

33

(34)

▪ Research and Development

Established the Institutes for the first time in the domestic beverages industry

Jinro established the Institute of Alcoholic beverages in 1973 for the first time in Korea in order to actively deal with the ever-diversifying and upgrading consumer's taste. The institute of Jinro is a brain that has researched and developed the representative products such as Chamisul and Jinro J, and it has been the Mecca of Korean Industry of Alcoholic beverages.

Developed an analysis method using the high-tech device

The Central Institute of Hite, since its establishment in 1993, has conducted development of various new products and researches on microorganisms and yeast. In particular, The Institute is devoted to improving product quality through the development of the analysis method using high-tech devices, process enhancement and strict quality management. In addition, the Institute is promoting the development of good quality yeast by using biogenetic engineering technology, as well as the future yeast bank. To the Broader World.

Continuous Quality Development

34

(35)

▪ Group CSR Activities

Our Nation, Our Nature, Clean Campaign

Hite carries out Our Nation, Our Mountain, Clean Campaign every fall on major paths of mountains located in the metropolitan area, including Namhansan, Inwangsan and Cheonggyesan. In this event, Hite provides a trash bag and a souvenir for the mountain climber. In addition, Hite and Jinro participated in the Packing Materials Reduction Agreement held at Chosun Hotel in December 2008, taking an initiative in the Green Mileage Campaign.

Various Sports Sponsorship

Starting from the 1st Hite Cup Professional Ladies Golf Championship, Hite holds the tournament at the Blue Heron Golf Club located in Yeoju, Gyeonggi-do every year. In addition, Hite manages a woman s Archery team and a weight lifting team that has achieved a good record in various domestic and overseas tournaments. In 2008, Hite decided to sponsor a total of 3.2 billion KRW to the Korea Soccer Association over four years until 2012. It has also made an investment of 100 million KRW to Gangwon-do Provincial Professional Soccer Team.

Ski & Snowboard Camp for University Students

Hite actively carries out cultural events for university students. Every winter, Hite offers the ski Snowboard Camp for university students. We also provides an opportunity to experience foreign spirits culture by managing the HIPAM (Hite Publicity Ambassador).

Company Foundation Academy

In 2003 Hite opened the Hite Company Foundation Academy, a specialized company foundation course for preliminary founders and the existing managers of the draft beer bar. It has been providing theoretical and

practical training to them free of charge. ₃₅

(36)

Hospital Donation to Kkottongnae

Jinro has carried out social contribution activities since 1980. In 1988, Jinro constructed and donated to Ingok Jaae Hospital, and Kkottongnae in Eumseong- gun Chungcheongbuk-do. In 1995, Jinro established the Nocheriandeuri Jaae Hospital, a welfare institution for mentally or physically handicapped people in Kottongnae of Gapyeong.

Smile Again Campaign to Help Children Suffering from a Serious Disease In 2006, Jinro carried out various Smile Again events to give hope to children and families suffering from fatal diseases such as heart trouble and tumors. Jinro also supported Save the Children, a social welfare corporation, specializing in children’s rights, as well as managing Smile Supporters and Smile Walking Contest .

Cheonggyecheon Cultural Festival

From 2007 up to now, Jinro has been carrying out the Cheonggye Cultural Festival with the Seoul Citizen every 1^st and 3^rd Saturday afternoon by arranging a special stage at the Cheonggye Plaza in Seoul.

Official Sponsor of Baekje Cultural Festival

Jinro was selected as the official sponsor of the 55th Baekje Cultural Festival in March 2009. Jinro, sponsored a total of 41 million KRW last year. It is expected to support a total of 55.10 million KRW ads expenses, promotional vehicles and alcoholic beverages for this event which will be held this coming October.

Sharing Love of One Drink Campaign

In March 2009, Jinro held an agreement ceremony at the Sharing Love of One Drink campaign with the Community Chest of Korea. Jinro is expected to raise a total of 50 million KRW and will donate 25,000 bags of rice purchased by the fund

to the Community Chest of Korea. ₃₆

(37)

To the Broader World.

37

(38)

Hite Holdings-Governance of Hite-Jinro Group

Hite-Jinro Group, in July 2008, has divided the existing company into the holding company, Hite Holdings, and the business company, Hite. The establishment of the holding company has enabled the specialization and the

concentration on each investment and manufacturing sector. It has laid a foundation to increase the corporate value and maximize the shareholder s value, by enhancing management performances. It utilizes corporate resources through independent and specialized decision-making.

▪ Group governance hierarchy

38

(39)

▪ Group Annual Report (’10~11)

Unit: Mil KRW

Note: Included in total is sales reports from all of domestic and overseas subsidiaries.

39

(40)

Thank You

Web: http://www.hiteJinro.com (Korean website is available for the moment) Contact Mr Moon at 82-2-520-3212, 82-10-3440-9505

Address: The HITE

Hite bldg, 132-12 Cheongdamdong Gangnamgu, Seoul Korea Address: Jinro Soju

Jinro bldg, 1445-14 Seochodong Seochogu, Seoul Korea