Company Introduction

Contents Overview

Brands

Business Infrastructure

Domestic Business

Overseas Business

Sustainable Management

Vision 2020

Global

Total-Care Provider

of Beauty &

Health

10,526 in total

Overview _ Company Profile AMOREPACIFIC has been committed to beauty for 68 years.

(As of December, 2012)

AMOREPACIFIC Corp. Company name

Year of foundation

Founder

CEO

Location

1945

Suh, Sunghwan

Suh, Kyungbae

Head office : Jung-gu, Seoul

Domestic : R&D center, 3 factories

Overseas : 14 local subsidiaries

Sales : KRW 2,849.5billion

Operating profit : KRW 364.3billion

Financial Performance

(2012)

Number of employees

-4-

Korea 4,724

Overseas 5,802

Overview _ History AMOREPACIFIC is striving for a higher vision.

40s~50s

Introduction Phase

Founded as Pacific Chemical Engineering

Established Huam R&D center,

the first of its kinds in Korean cosmetics

industry

Converted to Pacific Chemical

Engineering Corp.

60s~70s

Growth

Phase

80s~90s

Innovation

Phase

2000~2010

Expansion

Phase

Sep. 1945

Aug. 1954

Mar. 1959

Launched Amore brand, introduced

door-to-door sales

Established a Tokyo branch

(locally incorporated in Jun. 1978)

Established a New York branch

(locally incorporated in Apr. 1978)

Built a new head office building in Yongsan

Sep. 1964

Nov. 1971

May. 1972

Jul. 1976

Established LA subsidiary

Established a French subsidiary

Declared management

philosophy (Service to Humanity,

Respect for People and

Creating the Future)

Renamed as Pacific Corp.

Established a Chinese subsidiary

In Shimyang

Mr. Suh, Kyungbae appointed

as CEO

Dec. 1985

Sep. 1990

Jan. 1992

Mar. 1993

Feb. 1994

Mar. 1997

Established a Chinese subsidiary

In Shanghai

Opened O’Sulloc tea Museum in Jeju

Renamed as AMOREPACIFIC

Amorepacific brand entered into

Bergdorf Goodman in New York

Declared Vision 2015

Converted to a holding company

structure

Joined the UN Global Compact

Declared AMOREPACIFIC WAY

Declared the vision for sustainable

management

Divested Innisfree as a subsidiary

Completion of new R&D center, Mizium

Listed on DJSI World

Acquisition of ‘ANNICK GOUTAL’ brand

Built a new cosmetics factory in Osan

Nov. 2000

Sep. 2001

Mar. 2002

Sep. 2003

Jan. 2004

Jun. 2006

Nov. 2007

Feb. 2008

Sep. 2009

Jan. 2010

Sep. 2010

Oct. 2010

Aug. 2011

May. 2012 -5-

Overview _ Corporate Governance Structure Outlook AMOREPACIFIC built a transparent governance structure to focus core competencies on the beauty and health businesses.

Innisfree

82%

Etude

81%

Amos Professional

100%

PacificPharma

65%

PacificPackage

99%

Pacificglas

100%

Jangwon

100%

AMOREPACIFIC

35% AMOREPACIFIC

Group

(% share ratio)

-6-

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

AMOREPACIFIC Trading Co., Ltd.

Annick Goutal S.A.S

AMOREPACIFIC US, Inc

AMOREPACIFIC Taiwan Co., Ltd.

AMOREPACIFIC SINGAPORE PTE. LTD

AMOREPACIFIC MALAYSIA SDN. BHD.

. PT Laneige Indonesia Pacific

AMOREPACIFIC (Thailand) Limited.

AMOREPACIFIC Japan Co., Ltd.

100%

AMOREPACIFIC EUROPE S.A.S

Amorepacific Global Operations Ltd.(HK) 90%

Amorepacific Global Operations Pte. Ltd. 100%

Amorepacific Cosmetics (Shanghai) Co., Ltd. 100%

Amorepacific (Shanghai) R&I Center Co., Ltd. 100%

Innisfree Cosmetics India 100%

AMOREPACIFIC Vietnam JSC 70%

Overview _ Vocation and Core Values We are committed to a vocation as a global total-care provider of beauty & health.

Asian Beauty Creator Vocation Values

Openness

Innovation

Proximity

Sincerity

Challenge

Our belief that true growth and Innovation are achieved when we communicate openly with those outside our organization

Our passion to bring refreshing newness to the beauty industry

Our intention to remain close to our customers and serve them as partners in beauty

Our commitment to doing every job to the best of our ability, no matter how small

Our pioneering spirit that is never

satisfied with doing business as usual

Respect for People

Creating the Future

Service to Humanity

We respect the diversity of all members of AMOREPACIFIC

across the world helping each other

to achieve their dreams through work

We challenge the realm of innovative beauty

which no one has set foot on with the profound Asian

Wisdom on nature and men

We will realize the ultimate dream of mankind to live

a beautiful and healthy life by creating the true beauty, harmonizing both internal

and external beauty

-7-

Overview _ History of Growth We have maintained solid growth through differentiated brand power and

diversified distribution channels.

Operating Profit

-8-

Sales Market

Capitalization (KRW 100million)

2,464 38,233

3,643

’08 ’09 ’10 ’11 ’12 ’08 ’09 ’10 ’11 ’12

16,783

28,495

71,000

’08 ’09 ’10 ’11 ’12

AMOREPACIFIC’s

Brands with its

Beauty Philosophy

-10-

Builds an unrivaled reputation with

cosmetics products that embody

ancient Oriental skin care therapies and modern clinical

science.

Creates its own modern aesthetic

with a trend-setting sense and continuous

research on skin.

Promises effective solutions to

a variety of skin problems

with the science of skin rejuvenation.

The science of water and light Is greatly loved by

young Asian women.

Delivers wisdom and beauty of

Oriental Medicine based on

herbal medicine ingredients

locally grown in Korea.

Contains naturally derived ingredients that supply moisture

to the skin to give a smooth,

natural look.

Includes a wide variety of convenient

menu options to suit the beautiful &

healthy lifestyles.

A globally-popular men’s fragrance for

Its romantic fragrances and artistic

container design.

Major brands _ Cosmetics AMOREPACIFIC is writing a new history of Asian beauty with our beauty products.

Superb quality and marketing power, customer-oriented service

Nurturing powerful brands and global expansion

Ensuring competitiveness in global market

Promoting inner beauty through beauty foods

Green communication

with the customers through the

development of sustainable products .

Household products for hair, body, oral care and green tea products

Reinforcing brand power/premiumization

Contributing to expansion and development of Korea green tea market

Major brands _ Household Products and Green Tea AMOREPACIFIC presents life care products for your beautiful and healthy life.

Makes a trend with fashionable hair

that gives you the confidence of a supermodel on the catwalk.

Carefully selected herbal ingredients

not only help prevent hair loss

but also provide hair with a healthy sheen.

Leads the mass- consumption market

with reliable products based on natural, organically-grown

ingredients.

Provides professional oral care based on

customized solutions for teeth.

Improves each individual’s

natural ability to heal and maintains

oral health with natural herbal

vitality.

Recognized as Korea’s leading green

tea brand, using clean tea

cultivated on Hallasan.

-11-

Premium Korean herbal medicinal

body care brand from Amorepacific’s

skin science research and the traditional

beauty methods

AMOREPACIFIC’s

Global

Competitiveness -

Business

Infrastructure

Global SCM We are implementing an optimal supply chain process by integrating production and logistics.

Domestic Network Global Network

Beauty Operation (Osan) France Paris – Europe Regional HQ Chartres – Production Site

Sulloc Tea Operation (Jincheon)

Mass Beauty Operation (Daejeon)

-Area : 18,000m2

-Production : Lolita Lempicka brand -Establishment : September 1990

-Area : 16,650m2

-Production : Mamonde brand -Establishment : July 2002

Shanghai – Greater China Regional HQ/Production Site

China

-13-

To take a leap as Asian Beauty Creator, once dispersed production and logistics facilities are integrated to the environment-friendly, optimized SCM production station in Osan

-Area : 236,790m2

-Production : Skin care and makeup (toner, lotion, cream, lipstick, etc.) -Year of establishment : Planned to be completed in May 2012

-Area : 46,159m2

-Production : Green tea and health foods -Year of establishment : July 1995

-Area : 69,790m2

-Production : Household products (hair/body care, toothpaste, soap etc.) -Year of establishment : July 1980

R&D innovation We make continuous investments in R&D to ensure innovative technologies.

Increasing the proportion of mid- to long-term research to develop world-leading

technologies and nurturing technological

masters

Developing a Sustainable

Research Strategy

Major agenda

Building Global Competitiveness

Reinforcing Bio Science

- Developing earth-, society-, customer-friendly products

- Increasing the proportion of mid to long-term research

- Nurturing masters in generic technology

Developing the world’s hot sellers based on

Asian beauty and insights of local

customers

- Reinforcing insights from global customers

- Developing Asia-specific ingredients such as ginseng,

soybeans, green tea, etc.

- Developing the world’s hot sellers

Utilizing the latest bio technology, identifying how

the genetic and environmental differences affect

skin and health conditions

- Searching for world-class bio knowledge

- Creating innovative values

- Securing the future growth drivers

by reinforcing competency in bio technology

-14-

R&D Investment over Sales

(Based on FY12)

AMOREPACIFIC L’Oreal Shiseido Estee Lauder

2.5%

2.2%

1.0%

3.5%

Domestic

Business

Driving

Sustainable

Growth through

Continuous

Innovation

Domestic Business _ Current State of Major Businesses AMOREPACIFIC is strengthening the No. 1 position in Korea through solid growth of core businesses.

Cosmetics Household Products & Green Tea

Luxury Cosmetics (62%)

Premium Cosmetics (37%)

Sulwhasoo, HERA, Amorepacific

IOPE, Laneige, Hannule, Mamonde

Differentiated quality, service and design

Attractive concept and reasonable price

Ryoe, Mise-en-scene, Happy Bath, sulloc

Excellent product power and Various product range

(Based on 2012 sales)

KRW 19,962 (82%)

Domestic Market Share

-16-

KRW 4,375 (18%)

(KRW 100million)

2010 2011 2012

39% 38% 39%

[Inclusive of Innisfree and Etude brand M/S]

Domestic Business _ Brand Channel Matrix AMOREPACIFIC products are reaching consumers through various channels.

Channels

-17-

Cosmetics Household Products and Green Tea

Lu

xu

ry

Door to door

Department stores

Pre

miu

m

Specialty stores

Hypermarkets

On-line

O’Sulloc

Domestic Business _ Financial Results Thanks to organic growth of all business divisions, our sales exceeded KRW 2trillion mark.

-18-

Proportion of Domestic Sales: 84%

<Based on 2012 sales>

Household Products

and Green Tea

Cosmetics

Sales Operating Profit

(KRW 100 Million)

20,056

22,275

24,067

3,560 3,698 3,738

’10 ’11 ’12

83% 82% 82%

17%

18% 18%

91% 89% 90%

11% 10%

’10 ’11 ’12

9%

Global

Business Going Beyond

Asia to become

a Global Beauty

Leader

Global business _ Current State of Major Businesses AMOREPACIFIC is spreading the wonders of Asian beauty through aggressive expansion to the global market.

- Major brand : Lolita Lempicka, ANNICK GOUTAL

- Entered into France, the home of fragrances In 1997, first among Korean cosmetics industry - Sold in around 2,000 beauty stores across France - Ranked among top 10 female perfumes in France - Acquisition of the luxury French

perfume brand, ‘ANNICK GOUTAL’ - Number of employees : 196

Year of entrance by country and brand

FRANCE

CHINA ASIA

JAPAN

USA

- Brands : Sulwhasoo, Laneige, Mamonde,

Innisfree

- Innisfree launched into China in 2012

- Sold in around 1,200 department stores

and 2,500 specialty stores across China

- Number of employees : 4,982

- Major brand : Sulwhasoo, Laneige

- Targeting newly developing market

such as Indonesia, Thailand,

Singapore, Malaysia, etc. with Laneige

- Sulwhasoo Spa opened in Hong Kong

- Number of employees : 339

- Brand : Etude, Ryo, Amorepacific - Etude brand strengthened its brand awareness by opening new shops - Ryo and Mamonde brands launched

in 2012 - Number of employees : 130

HQ

Brands

France

Hong Kong China Singapore Vietnam Taiwan

Taiwan/Thailand /Singapore/US

Hong Kong

US Japan

China

-20-

- Brand : Amorepacific, Sulwhasoo - Established the foundation for global growth by entering into the US market - Enhanced the customer awareness by launching the company’s namesake brand Amorepacific to high-end department stores - Strengthened the prestige image by opening Gallery & Spa, a flagship store in Manhattan, New York - Number of employees : 56

Advanced markets

Growth market

Thailand

Japan

Japan/HK/Singapore

China

1997 2002 2003 2004 2005 2006 2010 2011 2012

Japan

China

Overseas Business _ Financial Results Our overseas business turned around and made a profit in 2010 through solid sales growth and improved profitability.

-21-

5%

5%

4%

‘10 ’11 ’12

Sales Operating

Profit

2,667

3,273

4,428

-95

84

30

31%

19%

17%

37% 14%

15%

53%

58%

59%

’10 ’11 ’12

(KRW 100 Million)

Proportion of Overseas Sales: 16%

<Based on 2012 sales>

US

Other Asia

France

China

A Promise

for a Beautiful

World we Create

Together

Sustainable Management _ Strategic Directions We are striving to become Asia’s most respected company in the beauty industry by consistently pursuing different strategies for each stakeholder.

Vision for Sustainable Management

Vocation

5 Strategic Directions Major Performances

Performances in 2012

Asian Beauty Creator

Beauty for Good ‘Asian Beauty Creator that changes

the world through beauty’

• Incorporate into DJSI World: Included in DJSI World for three consecutive years, selected as sector leader for ‘personal products’ for three years in a row

• Incorporated into FTSE4Good: Included in FTSE4Good for two consecutive years, selected as No.1 in Asian region in 2012

Safe Products &

Sustainable Innovation

Reduction of

corporate-wide

Environmental impact

Creation of a workplace

where people want to

work

Win-win relationships

with business partners

Strategic social

contributions

Customers

Environment

Employees

Business Partners

Community

-23-

No. of ‘Beautiful Fair Trade’ agreements signed

10 cases Amount of empty containers

collected

157 tons

Ratio of female managers

18.0%

Reinforcement of open communication

Number of participants in employee sharing activities

3,932 persons

No. of sustainable products

311 items

Amount of GHG emissions (Basic Unit)

1.181 tons of CO2/ KRW in 100 millions

Engagement level of employees

77.0%

Amount of win-win cooperation fund

KRW 20 billion

Social contributions expenditures compared to pre-tax profit)

KRW 9,742 million

▲123.7%

▲1.6%

▲ 2.0%p

▲ 0.1%p

▲100.0%

▲42.9%

▼117.9%

▲ 0.1%p

▲33.2%

Operation of Purchasing portal, Win-win portal and Production information

synchronization system)

주요연혁 주요활동

Sustainable Management _ History and Major Activities AMOREPACIFIC is enhancing corporate value by taking responsibility for environment and society.

- Developing customer-, earth-, and society- friendly products - Launched 311 products in 2012 - Adding ‘AMOREPACIFIC Promise’ emblem on products that meet stringent internal

guidelines

1. Sustainable Products

- Developed in-house by AMOREPACIFIC - 3 principles: safety, environmental preservation, contribution to local communities - A positive impact on the environment and society

2. Beautiful Fair Trade

- Supports welfare promotion projects for low-income class - AMOREPACIFIC Foundation, central to a variety of research projects related to women’s life and culture - CSR activities, such as Pink Ribbon Campaign

and Makeup Your Life

3. Foundations for Public Welfare and Sharing Activities

-24-

History Activities

Included in FTSE4GOOD Index

CSR Grand Prize Excellence Award of East Asia 30

Top prize at 2010 Sustainability Management Awards

Listed on DJSI World, Asia-Pacific, Korea

Listed on DJSI Asia-Pacific

Received the Presidential Awards for sustainable management

Joined the UN Global Compact

Listed on DJSI World, Asia-Pacific, Korea for three consecutive years, selected as sector leader

2007

2008.

2009

2010

2010

2010

2011

2012.

Sustainable Management _ Sharing Activities We are engaging in various social contribution activities for healthy lives of women as a part of sustainable management.

Pink Ribbon Campaign A campaign to raise public awareness of breast heath issues and promote needs

for early/regular checkups

Hope Store A micro credit program for low-income single mothers to help them

economically independent by financing business

startup loans

Makeup Your Life A campaign for female

cancer patients to help them overcome emotionally-

distressing physical changes during

treatments

- Started as a campaign for female cancer

patients in 2008

- Offers beauty classes for female cancer patients

- 1,760 cancer patients participated in 2012

- Started the campaign in Shanghai, China since 2011

- Provides comprehensive supports from

education and preparation to opening

- Contributes to enhance social awareness

of single mothers

- Forms a beautiful cycle of sharing

- 146 Hope Stores opened in 2012

- A representative public campaign since 2000

- Hosts Pink Ribbon Marathon

- Sponsors the research of the Korea Breast

Cancer Foundation

- 31,150 people participated in Pink Ribbon

Campaign lectures in 2011

-25-

Vision 2020

to Spread Asian

Beauty to

Global Market

AMOREPACIFIC Group’s Vision for the Year 2020 In order to go beyond our No. 1 position in Korea to become a global beauty leader, we present our vision 2015.

Vision 2020 Global Top 7

Beauty Company

Sales

Inner Beauty

Health

Outer Beauty

Beauty

10 Megabrands

Domestic

Overseas 88% 88% 87% 85%

39%

(KRW trillion)

-27-

5 Megabrands

2.2 2.7

3.1 3.4

5.0

2009 2010 2011 2012 2015(E)

90% 90% 89% 89% 81% 10% 10% 11% 11%

19%

61%

9.0

2020(E)

Strategic Directions for Vision 2020 AMOREPACIFIC is moving toward vision 2015 by establishing systematic mid- to long-term strategies.

Growth

Global Green

Strategic Directions Business Strategies

• Maintain market dominance through differentiated quality of door-to-door sales

• Secure the largest market share in department stores by attracting younger customers

• Lead the market through innovation in retail distribution (Aritaum/mart)

• Premiumize hair/body care and focus on functional products

• Expand into baby/men/elderly markets

• Premiumize green tea

• Maintain growth by expanding products and channels in China

• Discover new growth market such as ASEAN and India

• Strengthen the position and improve profitability in developed markets

Enhance environment-friendliness and product safety

Strengthen win-win cooperation with business partners

Accelerating growth in Asia

Build a foundation for profitable growth

Search for new growth drivers

Develop megabrands

Vision 2020 Global Top 7 Beauty Company

Cosmetics

Household Products/ Green Tea

Global

Mid- to long-term strategic

directions

-28-

Asian Beauty Creator