ORION INTRODUCTIONBOOKLET

Orion Group is a South Korean company founded almost 60 years

ago, one of the world's largest confectionery companies.

The company's portfolio includes about 100 brands in such

categories as biscuits, candy, gum, chips, etc.

Think «Smart», act «Strong». These are the fundamental principles of Orion

family which allow us to keep leadership positions.

ABOUT THE COMPANY

OUR PHILOSOPHY

Determining what should or should not be done and doing what must be done

Finding the 20% core capacities

2.

1.

3.

«Give up and then never give up» instead of «Never give up»

«Smart» starts from reconsidering why we are doing and what we are doing.

«Smart» can be defined as taking only the necessary actions after analyzing

the pros and cons of the possible end results. Also, by eliminating the

unnecessary tasks, both system and processes are simplified.

This will enable easier and more efficient task processing and yield upward

standardization for higher standards.

The concept of «Smart» can be summarized as «Upward standardization

centered of core capacities». By focusing only on the core values, maximum

qualitative effects can be achieved.

For instance, even the global leading companies have been focusing solely on

their specialties, which is very significant. The IT enterprises, such as Dell,

Sony, and Microsoft have been concentrating on R&D and marketing instead

of production outsourcing. Coca-Cola once expanded their beverage produc-

tion lines. However, after noticing the competitiveness downfalls, they decided

to concentrate only on their leading product, Coca-Cola.

Orion has been practicing the «Smart» management method for over 20 years.

The OMP (Orion Merchandising Program), a smart sales strategy that allows

customers to receive goods on time at a preferred place, has been put into

practice since the late 1980.

Orion’s BPR (Business Process Re-engineering ) was introduced in the early

1990. This has created a working condition where only the essential and

practical work processes, ranging from production to sales, was conducted. In

addition, the development of the ABC (Activity Based Costing system) derived

faultless assessments of profit and loss account structure. Also, ABC has

allowed effective selection of leading products via product profit analysis. This

«Core Brand Strategy» not only helped decide the core products but also

perfected our «Smart» management method.

SMART

The core 20% decides the remaining 80%. What is the 20%? The «Core

Brand Strategy» is a typical example. It is eliminating 80% of the products

that draw red figures and finding the core 20%. The power of 20% will take

control of the overall sales and profits even when the remaining 80% is

absent. It is needless to hold all 100%. The core 20% is all you need.

«Smart» is not doing much, but doing only the core necessities.

The similarity of globally successful companies is that their business is not

quantitative but smart. They concentrate on the core brand. They focus on

concentration rather than dispersion. «Smart» is deciding what to do and

what not to do. If it is not worth much of a valuable, it should be given up.

It is needless to continue what must be given up. Only the promising cores

must survive.

3.

Making a performance-oriented organization with higher standards.A company that aims only for average performances to just get by can never

become «World-class». A strong organization equally distributes opportuni-

ties to everyone, but the rewards are only given to those with outstanding

performances. In order to better implement this, MBO (Management by

Objective) program was introduced since 1997.

2.

Working happily with the «Want to do» spirit.Our mindset has an enormous power. Based on our determination, we may

achieve either 1,000% or merely 10%. Heading out with a happy and future-

oriented mindset is completely different from not doing so. The keyword to

success is our mindset. If we start our day doing what we want to do, we can

achieve higher standards. And this is something that those who do «What

they have to do» can never follow.

«Strong» means solid and healthy. Orion’s «Strong» management pursues fun

workplace, progressive challenge, and a healthy organization that stays

ahead of competition.

«Smart» is using the brain or strategy for higher standards, whereas «Strong»

is the mindset and physical strength that carry out actions. This represents

the higher standard of a corporate culture.

Orion’s pursuit, «A company with many happy employees» is a part of «Strong»

management. If Orion builds a company that has many employees who enjoy

coming to work every morning, who love the company and it products, who is

passionate to make new challenges, and who receive reasonable reward for

their endeavors, «World-class» Orion will be achieved.

STRONG

MT&R (Mutual Trust and Respect)

4.

Orion emphasizes «MT&R» as Orion’s corporate culture.

It is having a humble attitude by admitting the differences among human

beings. Leaders shall take initiatives to do troublesome tasks while distribut-

ing favorable duties to subordinates. Also, compliments make relationship

smoother and sounder. «MT&R», compliments, and encouragements among

colleagues build pleasant work environment and healthier organization.

5.

Never be satisfied until you reach the ultimate goal.«Al long as we do not give up, dreams will ultimately come true». This is the

Orion spirit. «Strong» organization has many workers who are dedicated to

overcoming difficulties and recognizes such workers. As an organization

keeps its passion and «Can-do» spirit, even the seemingly impossible goals

can always be achieved. «World-class» Orion is possible only when we

understand that success is not given but achieved.

1.

A strong mindset enables us to bring our minds together for a common goal.

«Strong» management is our know how for competing against other multina-

tional companies. Unlike western companies, min and emotion take a large

part of our company. Orion’s «Strong» management is not just teamwork, but

a corporate culture that harmonizes truthful consideration, cooperation,

trust, and sacrifices.

«Strong» is the mindset

1960-701950- 1980- 1990- 2000-Emergence of Orion, the big star

of confectionary industry.

Foundation

Orion developed and launched Korea’s first soft biscuit called «Mommy

Biscuit» in 1960. Orion released flood of new products, including candies

(«Butter Ball», «Fruit Drops», «Chewnut Candy» and «Сhoco Candies»),

biscuits («Happy Biscuit», «Orion Cracker» and «Sweet Biscuit»), caramels,

and gums in this period.

In September 1968 Orion started producing solid chocolate and launched

the all-time favorites, «No.1 Chocolate» and «Nimege Chocolate».

Growth and new product development for greater popularity.

In 2001, Orion Group made a new leap forward as it spun off

from Tong Yang Group. With continuous effort in the foreign

market, the overseas sales of Orion exceeded one hundred

million dollars in 2005 for the first time. In 2009, Orion

operated total of 8 overseas factories throughout China,

Russia, and Vietnam, slowly becoming world-class. Thanks to

its global leading brand, «Orion Choco Pie», the overseas

sales exceeded domestic sales.

New beginningOrion, Growing up to be a global company

OFL (Orion Frito-lay), the joint company

of Orion and Pepsi established in 1987,

recorded the highest sales in snack with its

first product, «Cheetos». Also, «Pockachip»,

the first potato snack containing 95% of

Korea-grown potatoes, recorded No.1 sales

among all potato snacks and is still recog-

nized as the leader of potato snacks.

Preparation for take-off

Built a stepping stone to becoming

the best confectionery company:

Export promotion and establishment of

oversea subsidiaries;

Establishment of offices in Tokyo, Beijing,

Moscow, Ho Chi Minh, etc. (1990s~);

Construction of OFC (Orion Food Co.) factory

in Beijing, China (1997)

Change and Challenge

HISTORY OF ORION

NORTHAMERICA

SOUTHAMERICA

OCEANIA

Japan

Indonesia

USA

Dubai

Myanmar

ASIA

EUROPE

AFRICA

FURTHER LEVERAGE BRANDPOSITIONS AROUND THE GLOBE

Present Market Local Co.

Target Market Local Officev

Export

9 800 km

4 066 km

944 km

1070 km

803 km

1 213 km

1 135 km

Novosibirsk

Ho Chi Minh

Icheon

Iksan

Cheonju

Hanoi

Shanghai

Guangzhou

Beijing

Beijing

RUSSIA

Tver

CHINA

VIETNAM

KOREA

ORION has 9 high-tech production facilities in four countries:

Russia, China, Vietnam and Korea.

Continuously improving the taste and quality of products, the company has

earned the trust and love of consumers around the world. Different types of

confectionery and snacks produced by Orion corporation are sold in more

than 60 countries worldwide.

GLOBAL STATUS

Production and management processes are

organized according to the highest modern

standards and meet the requirements of

safety and quality control of food products,

which is confirmed by the international

certificate of standard FSSC 22000

(Food Safety System Certification)

All products for the Russian market and the CIS countries are

produced at local factories located in Tver and Novosibirsk.

HISTORY OF ORIONIN RUSSIA

PRODUCTION IN RUSSIA

NOVOSIBIRSKTVER

2003 October

Opening of Orion Food Russia

2004 June

Opening of the first test production factory in

Zvenigorod with the Choco Boy line.

Production localization helped Orion to find

out consumer preferences and adapt its

products to Russian tastes

2005 February

Foundation of the Tver factory proved that

ORION had a strong strategy for becoming a

leading confectionery company in Russia

2007 September

Start of exports to CIS countries

2008 February

Foundation of a production factory in

Novosibirsk. The location allows the

company to supply products to Eastern

Russia and Central Asia

2013 March

The production factory in Novosibirsk was

certified to satisfy the international

standards of FSSC 22000 «Food Safety

System Certification»

2013 October

The production factory in Tver was

certified to satisfy the international

standards of FSSC 22000 «Food Safety

System Certification»

OUR BRANDS

The undisputed leader in our line-up is Orion Choco Pie.

The optimum combination of biscuit, chocolate and marshmal-

low filling, found in 1974, has captivated several generations of

sweet tooths. The history of Orion Choco Pie in Russia dates

back over 20 years.

Advertising activities

OOH Transportation wrapping

Advertising in shops

Advertising in social networks

vk.com/chocopie

BTL

Since 1996 we continue to invest into the brand support

2015

TV advertising

19962001

20032004

20062008

2009

Advertising activities

Another sweet «superstar» of our portfolio is Choco Boy.

Kids love it for the unusual mushroom shape, cheerful

character and the unique combination of milk chocolate

and crunchy biscuit.

The product line includes 2 brands: mushroom-shaped Choco Boy

and Choco Boy Safari cookies with pictures.

Choco Boy is not just a crunchy cookie with milk chocolate,

but fun and adventure.

OOHBTL

Advertising in shops Advertising in online

TV advertising

20152010 2011

Marine Boy is an innovative snack, because it is 100% potato based

and features the popular taste of sour cream and cheese.

Marine Boy baked potato snacks are a healthy and incredibly tasty

alternative to the usual chips, because they are cooked without oil,

and therefore do not contain harmful substances.

• 100% potato based

• Less salt

• Soft cheese taste

• Enjoy the taste without any harm

to the health

•

• Soft che

• Enjoy the taste w

to the health

TV advertising

Advertising in shops

Advertising in social networks

vk.com/marineboy

BTL

Due to the unique geographical position of our country, the market

offers opportunities of trade expansion to Europe and the CIS, further

allowing the creation of a positive image of the company among more

than 700 million people!

Building long-term loyal relationships is a priority not only in the case

of end consumers, but also of our employees and partners.

OUR FUTURE

WE INVITE YOU TO JOIN!

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NOTES

Orion International Euro

Tel: +7 (495) 987-14-85

117574, 129 A Profsouznaya street, Moscow, Russia

www.orionworld.ru