CJ GLS Vietnam Introduction

August 2012

Table of Contents

I. CJ GLS Overview

II. CJ GLS Vietnam Overview

1. Company Profile Ⅰ. CJ GLS Overview

CJ Group 4 Major Business Area

Marketing

Marketing

Prom

otionSales

Sales

Logist

ics

ogist

icsFood and Food Service

ENTand Media

Home Shopping and Logistics

Bio-PharmaSynergy

Material FoodProcessed Food Animal FeedFood Service

Material FoodProcessed Food Animal FeedFood Service

Home ShoppingLogisticsHealthy & Beauty Store

Home ShoppingLogisticsHealthy & Beauty Store

Movies, MusicCinemasBroadcastingMedia, Online

Movies, MusicCinemasBroadcastingMedia, Online

PharmaceuticalOverseas BioPharmaceuticalOverseas Bio

1. Company Profile Ⅰ. CJ GLS Overview

CJ GLS founded in 1998

– CJ separated from Samsung Group in 1996

– CJ GLS’ Spin-off as a 3PL in 1998

– CJ GLS acquired Accord Logistics in 2006

Head Quarter

– CJ GLS Inc. – HQ in South Korea

– CJ GLS Asia – Regional HQ in Singapore

Global Network

– 24 owned entities in 12 countries

across the Asia-Pacific region and Europe

– Overall 3,700 own manpower over the world

– More than 100 strategic partners

and agents around the world

AlabamaAlabama

QingdaoQingdao

ShanghaiShanghai

Los AngelesLos Angeles

• Korea (Seoul, Incheon, Suwon, Pusan, Daegu, Kwangju, Daejeon)• Singapore (Toh Guan, Jurong, Changi, Keppel)• China (Shanghai, Shenzhen, Tianjin, Fuzhou, Suzhou, Qingdao)• Hong Kong• Indonesia (Jakarta, Surabaya, Denpasar, Semarang, Medan, • Palembang, Pekanbaur, Balikpapan, Makassar) • Malaysia (Klang, Kuala Lumpur, Penang, Johor Bahru)• Netherlands (Amsterdam)• Vietnam (Manila, Cebu)• Thailand (Bangkok, Laem Chabang)• USA (Alabama, Los Angeles)• Vietnam (Ho Chi Minh, Hanoi, Danang)

[ Own Subsidiaries ]

3. Service Coverage Ⅰ. CJ GLS Overview

• Strategic SCM outsourcing partner and consulting service

• Local warehousing and distribution, international freight forwarding service

Total Solutions in B2B FieldManagement of customer ordersInventory control, Pick & PackDeliveryData mining

B2C(TV home-shopping, e-commerce etc.)and C2C Total ServiceInventory control and Pick & PackDoor-to-door deliveryWeb solution (Tracking the goods, etc.)Operation of Call Center

Global Logistics SolutionsForwardingInternational carrierW&D in overseas countries

3PL(Contract Logistics)

GlobalForwarding

Parcel

Delivery

Consulting

Certified as comprehensive logistics company

NO. 1 KS-SQI The fourth straight year

Certified as ISO9001(2000)

4. Global Network Ⅰ. CJ GLS Overview

• 12 countries 24 subsidiaries in Korea, China, South-East Asia, Europe, America, etc.

• Korea No 1 logistics company to have global network with 100 partners

EuropeEurope Southeast AsiaSoutheast Asia Northeast AsiaNortheast Asia North AmericaNorth America South AmericaSouth America

Germany Indonesia China (6) USA (3) Brazil

Netherlands Malaysia Hong Kong Mexico (2)

Philippines Korea

Dubai Singapore

South Africa Thailand India

Vietnam

EuropeEuropeEuropeEurope Northeast Northeast AsiaAsia

Northeast Northeast AsiaAsia

Southeast Southeast AsiaAsia

Southeast Southeast AsiaAsia

North North AmericaAmericaNorth North

AmericaAmerica

South South America America South South

America America

Own Subs Office / Partner

M-East, AfricaM-East, Africa

Southwest AsiaSouthwest Asia

( 개 , m²)Sub# of WH

Capa(m²)

# of truck

# Trailer # forklift

Singapore 5 35,268 35 0 34

Indonesia 9 36,641 42 0 25

Malaysia 4 25,730 44 83 23

Thailand 4 50,163 9 55 6

Philippines 3 13,223 6 0 8

Vietnam 8 39,000 23 22 15

S.E Asia 33 200,025 159 150 111

Shanghai 3 13,500 0 0 14

Hongkong 2 3,260 2 0 1

Shenzen 1 1,000 0 0 0

Qingdao 1 1,500 6 4 0

China 7 19,260 8 4 15

U.S 2 32,002 0 0 5

Mexico 3 44,330 0 0 19

America 5 76,332 0 0 24

TTL 45 295,617 167 154 150

CJ GLS possesses total 40 ware houses (295,000 m2); 321 vehicle and 150 forklifts in South East Asia, China and America

S.E Asia : 6 subSingapore/Indonesia/Malaysia/Thailand/Philippines/Vietnam)

China 4 sub(Shanghai/HK/Shenzen/Qingdao)

America : 2 sub(Us. And Mexico)

Europe 1 sub Netherland

4. Global Network Ⅰ. CJ GLS Overview

5. Major Customer Ⅰ. CJ GLS Overview

CJ GLS has been providing total logistics service to more than 100 customers

Table of Contents

I. CJ GLS Overview

II. CJ GLS Vietnam Overview

FoundationFoundationFoundationFoundation Biz scopeBiz scopeExpansionExpansionBiz scopeBiz scopeExpansionExpansion

Hanoi Biz Hanoi Biz ExpansionExpansionHanoi Biz Hanoi Biz ExpansionExpansion

Samsung 1C1B

- Import / Export

- WH/LD

Samsung business

expansion - Factory operation - WH/LD volume increase

Airfreight Business - ’08.Oct Hanoi Branch open - ’08.Nov SEV nominated 3PL & forwarder - ’09.Apr SEV Production startWM/LD Biz expansion - WM/LD service for LG - SAVINA HHP operationLocal customer

development

2002~2003

Biz Portfolio diversifyBiz Portfolio diversifyBiz Portfolio diversifyBiz Portfolio diversify

Airfreight Biz expansion - SEV Production volume increase - Open ground handling company (ALSB) - ‘10.Sep Vacuum Cleaner factory - Business Development for SEV vendorSouthern Area Biz enhancement - Southern forwarding & transportation biz expansion - Logistic Service for CJ group - Business development for Korean, MNC, Vietnam Customer‘11.Jul Parcel Delivery launching

2004~2007 2008~2009 2010~2011

(Yearly Handling Volume) - IM/Export : Ocean (12K TEU), Air (11K Ton) - LD : 400K cbm (40FT CNTR 8,000ea)

CJ GLS Vietnam has been providing total logistic service with official license since Y2002.Expanding business scope with deep & wide understanding of Vietnam environment

1. CJ GLS Vietnam Milestone II. CJ GLS Vietnam Overview

2. CJ GLS Vietnam Organization

CJ GLS Vietnam organized 6 teams & 623 head counts

II. CJ GLS Vietnam Overview

Operations 2(249 HC)

Mr. Kim Jong Min

KAM (2)Mr. Lim BG

Ms. Siena Jeon

FWD 1 (91)

Mr. Kim Tung

FWD 2 (24)

Ms. Trang

North (57)

Mr. Thanh Tung

South (65)

Mr. Tan Phuoc

Central (10)

Mr. Phong (G4)

Operations 3 (101 HC)

Mr. Kevin Shin

Planning & Strategy (10)

Mr. Khoi

Business Development (8 HC)

Mr. Lee Seung Hoon

BD (1)

Mr. Ahn Chong Taek

Mr. Quoc Dung

Sales (6)

ProcessInnovation (1 HC)

Mr. Andee Kim

PI

TBD

ManagementSupport (48 HC)

Mr. James Choi

South (26)

Ms. Thao Vien – HR Mr. Son Dien – FN

North (21)

Mr. Quoc An - HRMs. Thanh Ha - FN

Managing Director

Mr. Andee Kim Jong Min

South Operation (55)

TBA

North Operation (35)

Ms. Loi

Operations 1(216 HC)

Mr. John Kong

FWD (56)

Mr. David Choi

BD (2)

Inland Handling (158)

Mr. Thai Son

Mr. John Kong

Function of each team

OP1 : Hanoi operation (Air/Sea FF/CC/Trucking) OP2 : HCM are FF/CC, Nationwide WH/LD OP3 : Parcel Delivery BD : Nationwide Business Development MS : HR/Finance

3. CJ GLS Vietnam Infrastructure – Hanoi

Remote Cargo Terminal in Bac Ninh Province

II. CJ GLS Vietnam Overview

[ Remote Terminal (1) [ X-Ray & Vehicl e][ Remote Terminal (2)

3. CJ GLS Vietnam Infrastructure – China Trucking

Cross-Border Trucking : Vietnam ~ South China

ShenZhen ~ Hanoi : total 1,150 Km DongGuan ~ PingXiang : 24 Hours (Departure D+0 16:00, Arrival D+1 09:00) LangSon ~ Hanoi : 6.5 Hours (D+1 21:00 Hanoi Arrival, include LangSon & BacNinh C/C) Total Lead Time : Total 30.5 Hours

II. CJ GLS Vietnam Overview

Pingxiang CustomsChina export C/C

ShenZhen - PingXiang1,000 Km

LangSon-BacNinh150 Km

Langson CustomsVietnam Inport C/CCargo transloading

2 lanes or moreNational Road and Highway

Average speed (80~100km/h)1~2 lane, National Road Less traffic but speed limit is

50~60km/h

3. CJ GLS Vietnam Infrastructure – GPS

Using GPS for all CJ GLS own vehicles

II. CJ GLS Vietnam Overview

Item Ho Chi Minh Hanoi Da Nang

Size 17,950 sqm 16,000 sqm 2,500 sqm

No. of Warehouse (Exclude Parcel)

3 4 1

Capacity 18,000 cbm 14,500 cbm 2,000 cbm

Distribution (Month) 15,000 cbm 12,000 cbm 2,000 cbm

Manpower (Including Drivers)

82 51 10

Dedicated Trucks(Own & Rental)

30 (1.5t ~ 5t) 20 (1.5t ~ 5t) 10 (1.5t~3.5t)

Storage Type Racking + Bulk Racking + Bulk Bulk

Hanoi 5 Zone

( 26 Zip )

Da Nang 3 Zone( 8 Zip)

HDC7 Zone

( 25 Zip )

Hanoi WH

Danang WH

HCM <-> Hanoi, Leadtime : 4~5 days

Y11 Q4 Own truck Investment : Total 12ea, USD 35M

Y12 Q1CNTR Investment Plan : Total 10ea, USD 1.2 M

CJ GLS will deliver competitive pricing to customer with own capacity

HCM WH

2. CJ GLS Vietnam Infrastructure – 3PL

Running 3 Distribution center in main area, 150 operation head count, 60ea trucks per day (Own Truck 15, Container Tractor 22)

II. CJ GLS Vietnam Overview

[ HCM WH ] [ DAN WH ] [ HAN WH ]

3. CJ GLS Vietnam Infrastructure – 3PL

Distribution Center Overview

II. CJ GLS Vietnam Overview

Covering HCM, Hanoi and other major cities Running 5 distribution center, 91 operation head counts, 11 trucks, 46 motor bikes

Vietnam Parcel Delivery Network

CDC : Central Distribution CenterRDC : Regional Distribution Center

[North Area] ① Direct( ) : Ha Noi ② Outsourcing( )

- Hai Phong, Hai Duong ③ Infrastructure

- CDC(1), WH(1), RDC(1)

[South Area] ① Direct( )

- HCMC, Vung Tau BD, Dongnai Tay Ninh, Long An

② Outsourcing( ) - Can Tho

③ Infrastructure - CDC(1), RDC(2)

Category

South North

HCMC RDC(2)

South CDC(1)

Ha Noi RDC(1)

North CDC(1)

Function• HCM area Collect & LD

•Sorting•Outskirt Area Collect & LD

•HCM area Collect & LD

•Sorting•Outskirt Area Collect & LD

Space 710 sqm 180 sqm 414 sqm 1,300 sqm

Capa.1500 Box(Delivery)

1,500 Box(Distribution)

800 Box(Delivery)

1,500 Box(Distribution)

Headcount

35 12 17 7

Trucks 7 2 2 -

Bikes 28 4 14 -

Vietnam Operation Center

3. CJ GLS Vietnam Infrastructure – Parcel Delivery II. CJ GLS Vietnam Overview

[ HCMC RDC ] [Ha Noi RDC ][ SCJ WH & North CDC ]

Operation Center Overview

3. CJ GLS Vietnam Infrastructure – Parcel Delivery II. CJ GLS Vietnam Overview

Warehouse Project in HCM : Construction by Q1 2013

3. CJ GLS Vietnam Infrastructure – New Warehouse Project II. CJ GLS Vietnam Overview

SongThanh IP

DongAn IP

VSIP

LinhChung IP

W/H Project 1

SAVINA

Current W/H

HCM Port

Land : 27,808 ㎡Warehouse : 16,000 ㎡

IP : Industrial Park

Tan Son Nhut Airport

Warehouse Project in Hanoi : Construction by Q3 2013

3. CJ GLS Vietnam Infrastructure – New Warehouse Project II. CJ GLS Vietnam Overview

SEV

Nokia(under construction)

Noi Bai Airport

W/H Project 2

China

Hai Phong

Current W/H

Land : 66,666 ㎡Warehouse: 15,000 ㎡

IP : Industrial Park

VSIP

YenPhong IP

CJ GLS is running 4 major set of IT system to support from daily logistics operation, global control system and customer web site

Operation Support Business Support

Customer Support Solution

Cu

stom

er Su

pp

ort

WMSWMSWMSWMS

FMSFMSFMSFMS

TMSTMSTMSTMSGTSGTSGTSGTS

ABSABSABSABS

OPSOPSOPSOPSDSSDSSDSSDSS

Advanced Business Connect(B2Bi)

Operation MonitoringOperation Monitoring

Supply ChainVisibility

Supply ChainVisibility

BusinessIntelligenceBusiness

IntelligenceSupply ChainEvent Mgmt

Supply ChainEvent Mgmt

Operation Management

Gate to outer world

Customer Portal

Monitoring &Event Management

II. CJ GLS Vietnam Overview4. CJ GLS IT System

B2B, B2C Customer System Integration

Booking RequestBooking ConfirmShipping Request

Packing ListCommercial Invoice

Bill of ladingAdvanced Shipping Notice

Arrival NoticeFreight InvoiceCargo Tracking

Goods ReceiptReceiving Order

Delivery OrderGoods Issue

Proof of DeliveryStock StatusMaster Data

Freight Invoice

Ocean Schedule(IFTSAI)Cargo Tracking (IFTSTA)

Booking Request (IFTMBF)Booking Confirm (IFTMBC)Shipping Request (IFTMIN)

Bill of lading (IFTMCS)Arrival Notice

Freight Invoice

EDI:UN/EDIFACT, XML

Material Movement, KPIProjected Inventory

Production Plan SimulationMaster Data

Carrier Interface

Ports

EDI:UN/EDIFACT, XML

Shipment B/LDeparture Notice

Discharge & Loading Report

CFS Arrival Notice

B/L Master Data

EDI

EDIEDI

EDIXML

XML

XML

XMLFILEEDI

XMLFILEEDI

XMLFILEEDI

Cus

tom

er E

RP

Visi

bili t

yW

M /

TMTr

adin

g(In

/Out

)

CJ

GLS

Aili

s-XE

WM

STM

SFM

SG

CC

Airlines &

Ocean Carriers

Customer Interface (ERP)

II. CJ GLS Vietnam Overview4. CJ GLS IT System