MIRA INFORM REPORT

 

 

Report Date :

16.04.2013

 

IDENTIFICATION DETAILS

 

Name :

LOTTE CONFECTIONERY CO., LTD.

 

 

Registered Office :

21, Yangpyeongdong 5-ga, Yeongdeungpo-gu, Seoul

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

24.03.1967

 

 

Com. Reg. No.:

107-81-34848

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Cocoa, Chocolate and Sugar Confectionery

 

 

No. of Employees :

4,251

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

South Korea - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

 

 


Basic

 

Company Name

LOTTE CONFECTIONERY CO., LTD.

(Korean Company Name :”롯데제과()”)

Registered Address

21, Yangpyeongdong 5-ga, Yeongdeungpo-gu, Seoul, Korea

Zip Code

150-866

Tel

+82-2-2670-6114

Fax

+82-2-6672-6600

E-mail

webmast@lotteconf.co.kr;seojo@lotteconf.co.kr;choija@lotteconf.co.kr

Website

www.lotteconf.co.kr

Trading Address

21, Yangpyeongdong 5-ga, Yeongdeungpo-gu, Seoul, Korea (P.O.BOX 3013)

Tel

+82-2-2670-6114

Fax

+82-2-6672-6600

Other Address-Daejeon Factory

78-4, Munpyeong-dong, Daedeok-gu, Daejeon, Korea

Tel

+82-42930-5114

Fax

 

Other Address-Yangsan Factory

511, Sanmak-dong, Yangsan-si, Gyeongsangnam-do, Korea

Tel

+82-55-370-6114

Fax

+82-55-370-6001

Other Address-Pyeongtaek Factory

538-3, Gagok-ri, Jinwi-myeon, Pyeongtaek-si, Gyeonggi-do, Korea

Tel

+82-31-667-2201~5

Fax

+82-31-667-2206

Other Address-Sihung Factory

1005-7, Doksan-dong, Geumcheon-gu, Seoul, Korea

Tel

+82-2-804-9028

Fax

 

Other Address-Jeonju Sales Office

1st Fl., 708-8, Geumam 1-dong, Deokjin-gu, Jeonju-si, Jeollabuk-do, Korea

Tel

+82-63-251-4353

Fax

+82-63-251-4353

Other Address-Juan Sales Office

35-7, Juan 5-dong, Nam-gu, Incheon, Korea

Tel

+82-32-434-6931

Fax

 

Other Address-Busan Business Office

17-2, Geoje-dong, Yeonje-gu, Busan 611-800 Korea

Tel

+82-51-8687361

Fax

 

Other Address-Daejeon Branch Office

412-4, Gayang-dong. Dong-gu Daejeon 300-805 Korea

Tel

+82-42-6270201

Fax

 

Other Address-Gyeongbuk Branch Office

1044, Nowon 3-ga, Buk-gu, Daegu 702-814 Korea

Tel

+82-53-3566888

Fax

 

Other Address-Ulsan Business Office

570-6, Seonam-dong, Nam-gu, Ulsan 600-819 Korea

Tel

+82-52-2760618

Fax

 

Other Address-Incheon Business Office

7-314, Shinheung-dong 3-ga, Jung-gu, Incheon 400-103 Korea

Tel

+82-32-8871952

Fax

 

Other Address-Gwangju Business Office

853-6, Yongbong-dong, Buk-gu,Gwangju 500-845 Korea

Tel

+82-62-5251054

Fax

 

Other Address-Gangwon Branch Office

1420, Heungeop-ri, Heungeop-myeon, Wonju-si, Gangwon-do 220-844 Korea

Tel

+82-33-7438614

Fax

 

Other Address-Daegu Business Office

235, Nowon 3-ga, Buk-gu, Daegu 702-815 Korea

Tel

+82-53-3584145

Fax

 

Other Address-Masan Branch Office

469-1, Bongam-dong, Masan-si, Gyeongnam-do, 630-804 Korea

Tel

+82-55-2550820

Fax

 

Other Address-Goyang Business Office

102-8, Gajwa-dong, Ilsan-gu, Goyang-si, Gyeonggi-do 411-440 Korea

Tel

+82-31-9236399

Fax

 

Other Address-Gyeongsan Business Office

835-3, Jungbang-dong, Gyeongsan-si, Gyeonbuk-do 712-802 Korea

Tel

+82-53-8140977

Fax

 

Other Address-Gwangyang Business Office

478-6, Inseo-ri ,Gwangyang-eup, Gwangyang-si, Jeonnam-do 545-807 Korea

Tel

+82-61-7626238

Fax

 

Type

Export/Import

Industry

Manufacture of Cocoa, Chocolate and Sugar Confectionery

  Main Business

Gum, Chocolate, Snack, Cracker, Ice Cream

  Sub Business

Manufacture of Ice-Cream and Other Edible Ice Cakes

Established (mm/dd/yyyy)

03/24/1967

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Confectionary products(50161800)

Sell

Crisps or chips or pretzels or mixes(50192109)

Sell

Chocolate or chocolate substitute(50161511)

Sell

Sweet biscuits or cookies(50181905)

Sell

Snack foods(50192100)

Sell

Chewing gum(50161815)

Sell

Jams or jellies or fruit preserves(50192401)

Sell

Popped corn(50192112)

Sell

Nuts or dried fruits(50192110)

Sell

Flavored ices or ice cream or ice cream desserts or frozen yogurts(50192303)

 

 

CEO’s

 

Name

Kim Yong-Soo

Date of Birth

11/1958

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

7,107,000,000

Employees

4,251

Formation

Listed Company (Korea Stock Exchange : 004990) as of 02/16/1974

A Company of LOTTE BUSINESS GROUP

Bank Details

Woori Bank-Dangsan Dong Branch

Corporate Registered No.

110111-0076300

Business Registered No.

107-81-34848

Permit & Licenses

04/1997 ISO 9001

04/25/2003 ISO 9001

Acquired the U.S. patent for its technology to extract polyphenol from cacao

Organic Farming Products Certificate from OTCO(Oregon Tilth Certified Organically Grown)

Xylitol Chewing Gum: Preventing Tooth-decade Certificate

 

Int’l Trade No.: 690362

Shareholder Position

Name

Shares

%

LOTTE ALUMINUM CO., LTD.(110111-0003121)

217,268

15.29

SHIN KYUCK-HO

97,057

6.83

SHIN DONG-BIN

69,350

4.88

SHIN DONG-JOO

49,450

3.48

SHIN YOUNG-JA

35,873

2.52

LOTTE FOUNDATION(181222-0000036)

123,576

8.69

HOTEL LOTTE CO., LTD.(110111-0145410)

45,670

3.21

DAEHONG COMMUNICATIONS INC.(110111-0249981)

10,900

0.77

LOTTE ENGINEERING & CONSTRUCTION CO., LTD(110111-0014764)

19,000

1.34

LOTTE MIDOPA CO., LTD(110111-0045983)

42,062

2.96

OTHERS

711,194

50.03

TOTAL

1,421,400

100.00

Company History

03/01/1967 : Established Lotte Confectionery

06/01/1968 : Opened branch offices in 5 major cities (Seoul, Busan, Daegu, Daejeon, Kwangju)

02/01/1969 : Completed construction of Yeongdeungpo Plant

10/01/1969 : Completed construction of Gum Base Plant (Siheung Plant)

03/01/1970 : Started to operate Siheung Plant (Gum Base Production)

12/01/1971 : Started gum production at Yeongdeungpo Plant

02/01/1974 : Listed shares on stock exchange (1974.2.16)

02/01/1975 : Started chocolate production at Yeongdeungpo Plant

01/01/1979 : Completed construction of Yangsan Plant

08/01/1983 : Completed construction of Pyeongtaek Plant

07/01/1984 : Established branch office in LA

06/10/1905 : Selected as official supplier for Olympics

11/01/1989 : Recognized for export volume of USD 10 million

12/01/1989 : Moved Head Office from Namyeong-dong to 23 Yangpyeong-dong 4-ga, Yeongdeungpo-gu

05/01/1991 : Opened Welfare Center in Yeongdeungpo Plant

03/01/1992 : Opened Lotte Industrial College

12/01/1992 : Established branch office in Beijing

07/01/1994 : Established LOTTE CHINA FOODS CO., LTD.

02/01/1995 : Established Lotte Philippines Joint Venture

07/01/1995 : Established branch office in Moscow

12/01/1995 : Recognized for export volume of USD 50 million

04/01/1996 : Completed construction of Daejeon Plant

04/01/1997 : Acquired ISO9001

11/01/1997 : Established Gimhae Logistics Center

04/01/1998 : Launched premium ice cream Natuur

09/01/1998 : Completed construction of Vietnam Plant for chewing gum production and started sales

12/01/1999 : Opened PI Integrated Information System

12/01/2002 : Achieved sales of KRW 1 trillion, a record in the domestic Confectionery industry

05/01/2004 : Acquired 80% of Parrys' shares (in India) (currently Lotte India Co., LTD.)

03/01/2005 : Acquired 100% of Lotte Qingdao Foods Co., LTD.

09/01/2006 : Established Lotte Taiwan Co., LTD.

12/01/2006 : Established Lotte Food Holding Co., Limited

04/01/2007 : Established Lotte KF Rus Llc

07/2008 : Established LOTTE CONFECTIONERY HOLDINGS B.V

08/2008 : Established LOTTE FOODS INDIA PRIVATE LIMITED

02/2010 : Moved to the present HQ address from 23, Yangpyeong-dong 4-ga, Yeongdeungpo-gu, Seoul, Korea

04/01/2013 Acquired KIRIN FOOD CO., LTD.(180111-0693879)


Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Co-President & CEO

Mr.

Kim Yong-Soo

Korean

1958.11.

Korea University, Korea

Co-President & CEO

Mr.

Shin Dong-Bin

Korean

1955.02.14

Columbia University, USA

Chairman

Mr.

Shin Kyuck-Ho

Korean

1922.10.04

Waseda University, USA

Outside Director/Auditor

Mr.

Kim Sang-Hyun

Korean

1952.02.17

Busan National University, Korea

Outside Director/Auditor

Mr.

Ki Geon-Ho

Korean

1947.09.07

Sejong University, Korea

Outside Director/Auditor

Mr.

Lim Hong-Jae

Korean

1950.01.16

Seoul National University, Korea

Outside Director

Mr.

Song Jae-Yong

Korean

1964.03.

Seoul National University, Korea

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

1,524,226,497,579

3,852,362,096,630

102,925,068,994

(*)2011

1,521,967,419,501

3,733,217,138,025

127,203,725,972

(*)2010

1,411,975,380,287

3,802,156,971,513

122,682,722,514

2009

1,316,786,015,179

3,461,944,642,631

95,565,208,092

2008

1,244,745,872,741

2,452,052,843,587

178,080,587,156

2007

1,134,173,968,565

2,158,010,287,718

108,991,128,948

2006

1,079,216,668,067

1,924,004,507,330

249,338,802,718

2005

1,116,531,899,038

1,631,159,411,013

99,211,206,817

2004

1,092,564,533,020

1,442,782,493,457

91,363,515,089

(*)Figures are based on the K-IFRS Accounting System.

 

Financial Description

 

Authorized Capital(KRW)

15,000,000,000

Paid-Up Capital(KRW)

7,107,000,000

Total Issues Shares

1,421,400

 

 


Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

3,852,362,096,630

3,733,217,138,025

3,802,156,971,513

Current Assets

527,761,951,591

587,027,938,127

545,735,359,754

Cash & Cash Equivalents

114,177,189,426

139,478,049,298

152,154,315,528

Trade Receivables & Other Receivables

187,057,436,817

180,866,287,734

159,073,691,423

Current Financial Instruments

50,774,432,904

100,866,651,904

109,519,729,488

Inventories

158,708,476,724

148,255,190,533

117,705,866,074

Other Current Assets

17,044,415,720

17,561,758,658

7,281,757,241

Non-Current Assets

3,324,600,145,039

3,146,189,199,898

3,256,421,611,759

Investment_Subsidiaries

438,106,566,577

387,716,675,215

366,096,514,907

Investment_Related Companies

157,285,330,027

199,502,034,476

179,889,183,917

Non-Current Financial Instruments

1,694,513,954,360

1,530,452,847,856

1,706,304,714,521

Tangibles

960,243,129,619

964,654,042,944

938,009,155,470

Intangibles

5,455,737,063

2,987,677,944

3,279,048,474

Investment_Real Estates

68,002,576,023

59,569,342,752

61,367,545,742

Other Non-Current Assets

992,851,370

1,306,578,711

1,475,448,728

Total Liabilities

1,068,453,733,995

1,168,046,206,441

1,191,266,536,233

Current Liabilities

241,144,527,442

586,098,482,516

443,444,604,051

Trade Payables & Other Payables

155,385,240,314

202,494,621,899

185,222,481,043

Short-Term Borrowings

265,777,938

715,252,594

923,207,837

Debentures

0

289,357,562,974

153,567,572,539

Other Current Financial Debts

33,604,342,845

39,969,567,572

45,296,288,023

Accrued Income Tax

14,185,235,802

16,536,887,950

21,522,019,416

Deferred Income

331,048,315

819,952,793

1,362,822,423

Provisions

21,158,711,116

21,312,050,500

21,767,251,638

Other Current Liabilities

16,214,171,112

14,892,586,234

13,782,961,132

Non-Current Liabilities

827,309,206,553

581,947,723,925

747,821,932,182

Long-Term Borrowings

0

0

325,046,000

Debentures

299,148,858,547

99,605,166,035

271,888,395,077

Other Non-Current Financial Debts

22,641,521,285

22,063,103,120

22,288,979,155

Provision for Severance & Retirement

13,462,665,497

4,910,241,434

8,921,587,065

Deferred Income Tax Credit

474,489,003,657

437,014,211,936

423,904,270,753

Deferred Income

9,293,092,686

9,544,778,627

10,700,279,225

Other Non-Current Liabilities

8,274,064,881

8,810,222,773

9,793,374,907

Capital Stock

7,107,000,000

7,107,000,000

7,107,000,000

Capital Surplus

12,998,116,109

12,998,116,109

12,998,116,109

Others

-6,247,971,000

-6,247,971,000

-6,247,971,000

Installments

1,132,749,778,025

1,008,515,236,453

1,175,598,561,271

Profit Surplus

1,637,301,439,501

1,542,798,550,022

1,421,434,728,900

Total Equity

2,783,908,362,635

2,565,170,931,584

2,610,890,435,280

Liab. & Shareholder’s Equity

3,852,362,096,630

3,733,217,138,025

3,802,156,971,513

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

1,524,226,497,579

1,521,967,419,501

1,411,975,380,287

Cost of Sold Goods

930,954,433,986

913,541,773,786

831,374,497,028

Gross Profit

593,272,063,593

608,425,645,715

580,600,883,259

Selling & Admin. Expenses

462,266,831,563

438,118,111,099

413,348,684,483

Operating Income

131,005,232,030

170,307,534,616

164,895,685,361

Other Operating Income

12,538,480,121

30,887,405,209

8,392,593,730

Other Operating Expenses

27,547,181,208

12,691,094,758

10,749,107,145

Finance Income

60,838,258,791

31,568,492,692

53,003,235,287

Finance Expenses

43,270,111,451

38,623,770,745

59,845,505,925

Income Before Taxes

133,564,678,283

181,448,567,014

158,053,414,723

Income Taxes Expenses

30,639,609,289

54,244,841,042

35,370,692,209

Net Income

102,925,068,994

127,203,725,972

122,682,722,514

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

78,794,251,691

120,548,270,727

164,346,814,514

Net Income

102,925,068,994

127,203,725,972

122,682,722,514

Cash Flows from Investing

-29,357,233,019

-92,167,178,126

-40,894,715,996

Cash Inflow from Investing

50,382,211,797

37,068,311,611

126,138,889,037

Cash Outflows for Investing

-79,739,444,816

-129,235,489,737

-167,033,605,033

Cash Flows from Financing

-74,638,560,163

-42,335,292,295

-23,635,977,769

Cash Inflows from Financing

216,826,208,005

151,956,377,130

56,000,000,000

Cash Outflows from Financing

-291,464,768,168

-194,291,669,425

-79,635,977,769

Increase/Decrease in Cash

-25,201,541,491

-12,677,711,273

99,816,120,749

Cash at the Beginning of Year

139,478,049,298

152,154,315,528

52,356,720,486

Cash at the End of Year

114,177,189,426

139,478,049,298

152,154,315,528

 

 

Products, Technologies, Services Description

 

Main Products & Services

PRODUCTS & BRAND NAMES

 

Chewing gum-Xylitol,Flavono, etc.

Candy-Anytime,Herb Throat Candy, etc.

Biscuits-Custard, Magaret, etc.

Chocolate-Pepero, Dream Cacao, etc.

Sherbet-World Cone, Seol-Lae-Im, etc.

Other-Kko Kkal Corn, Cheetos, etc.

Sherbet-Joo-Mool-Lu, Precious Bar, etc.

Other-Vegetable Cracker, Choco Rice Cake, Rental revenues, etc.

Ice creams

Production Capacity

(Unit : Ton)

Products

2007

2006

2005

Gum/Candy

50,243

52,164

50,243

Biscuits/Chocolate

119,975

136,019

119,975

Ice Cream

241,257

241,747

241,257

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

CJ CORPORATION(110111-0015639)

ADDRESS: CJ BLDG., 500, NAMDAEMUNNO 5-GA, JUNG-KU, SEOUL 100-802 KOREA

TEL:+82-2-726-8114  FAX:+82-2-726-8179

 

DAESANG CORPORATION(110111-0327125)

ADDRESS: 96-48, SINSEOL-DONG, DONGDAEMUN-KU, SEOUL 130-706 KOREA

TEL:+82-2-2220-9500  FAX:+82-2-2232-3719

 

LOTTE MILK CO., LTD.(110111-3650838)

6-1, MULLAEDONG 6-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2639-3114  FAX:+82-2-2639-3000

 

LOTTE SAMKANG CO., LTD(110111-0033722)

21, MULLAE-DONG 6-GA, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-2629-0114  FAX:+82-2-2629-0291

 

FORTERRA

ED & F MAN

HASEGAWA

Customers

 

Competitors

ORION CORPORATION

30-10, MUNBAE-DONG, YONGSAN-GU, SEOUL, KOREA

TEL:+82-2-710-6000  FAX:+82-2-715-8280

 

CROWN CONFECTIONERY CO. LTD.

131-1, NAMYEONG-DONG, YONGSAN-GU, SEOUL, KOREA

TEL:+82-2-791-9133  FAX:+82-2-791-9119

 

BINGGRAE CO., LTD.

344-3, DONONG-DONG, NAMYANGJU-SI, GYEONGGI-DO, KOREA

TEL:+82-31-560-8000  FAX:+82-31-560-8201

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates-Domestic

LOTTE SAMKANG CO., LTD(110111-0033722)

LOTTE CHILSUNG BEVERAGE CO.,LTD(110111-0003684)

HONAM PETRO CHEMICAL CORPORATION(110111-0193196)

KP CHEMICAL CORP(230111-0082112)

LOTTE SHOPPING CO., LTD.(110111-0000086)

LOTTE MIDOPA CO., LTD(110111-0045983)

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

LOTTE HAM CO., LTD.(110111-0229371)

LOTTERIA CO., LTD.(110111-0262850)

LOTTE FRESH DELICA CO., LTD.(134511-0034295)

LOTTE BOULANGERIE CO., LTD(135511-0109807)

LOTTE PHARM CO., LTD.(110111-0657788)

FOOD STAR, INC.(110111-1739155)

CINEMA TRADING CO., LTD(110111-3180918)

WELLGA INC.(184511-0000379)

SANJUNG BEVERAGE CO., LTD.(111511-0013288)

CHANG DAE TRADING CO., LTD.(110111-0904907)

HOTEL LOTTE CO., LTD.(110111-0145410)

LOTTE GIANTS BASEBALL CLUB(110111-0317556)

HOTEL LOTTE PUSAN CO., LTD(180111-0053461)

LOTTE MOOLSAN CO., LTD.(110111-0320707)

LOTTE JTB CO., LTD(110111-3685710)

THE CINEMA OF KOREA(110111-3837501)

LOTTE CITY HOTEL CO., LTD(110111-3946518)

LOTTE TRADING CO., LTD(110111-0159099)

LOTTE STATION BUILDING CO., LTD.(110111-0505903)

LOTTE LOGISTICS CORP.(110111-0040446)

KOREA SEVEN CO., LTD.(110111-0899976)

LOTTE.COM INC(110111-1843972)

LOTTE ASAHI LIQUOR COMPANY LTD.(110111-0530033)

WOORI HOME SHOPPING(110111-2248957)

LOTTE DAESAN PETROCHEMICAL CORPORATION(161411-0014684)

KP CHEMTECH(230111-0100443)

DAESAN MMA CORPORATION(161411-0016995)

KOREA FUJIFILM CO., LTD(110111-0042715)

HOWTECH  CORPORATION(110111-2110114)

LOTTE ALUMINUM CO., LTD.(110111-0003121)

LOTTE ENGINEERING & MACHINERY MFG. CO., LTD.(110111-0154560)

CANON KOREA BUSINESS SOLUTIONS INC.(130111-0007666)

LOTTE ENGINEERING & CONSTRUCTION CO., LTD(110111-0014764)

LOTTE ASSET DEVELOPMENT CO., LTD(110111-2394263)

DAEHONG COMMUNICATIONS INC.(110111-0249981)

LOTTE DATA COMMUNICATION COMPANY(110111-1358343)

FRL KOREA CO., LTD.(110111-3133298)

LOTTE CAPITAL CO., LTD.(110111-1217416)

LOTTE CARD CO., LTD.(110111-0641434)

CHEONGNA ENERGY CO., LTD.(110111-3256818)

LOTTE MILK CO., LTD.(110111-3650838)

SEETECH CO., LTD.

Affiliates-Overseas

LOTTE INDIA CO., LTD.

LOTTE CONFECTIONERY HOLDINGS B.V.

CHOCOLATERIE GUYLIAN NV

LOTTE FOOD HOLDING CO., LTD.

LOTTE CHINA INVESTMENT CO.,LTD

LOTTE CHINA FOODS CO.,LTD

CHOCOLATERIE GUYLIAN DEUTSCHLAND

CHOCOLATERIE GUYLIAN IBERIA

AIMEE BVBA

GUYLIAN ASIA

GUYLIAN UK

GUYLIAN USA

SAS CHOCOLATERIE GUYLIAN FRANCE

K.S.S.E(PAKISTAN)

KOLSON INDUSTRIES(PRIVATE) LIMITED

LOTTE QINGDAO FOODS CO., LTD

LOTTE ICE (SHANDONG) CO., LTD

LOTTE CONFECTIONERY (S.E.A)PTE.,LTD

Overseas Office

TOKYO OFFICE

3-20-1 NISHISHINJUKU 1600023 SHINJUKU-KU TOKYO JAPAN                                                

TEL:+81-3-5388-5631 FAX: 81-3-3373-5501

 

BEIJING OFFICE

RM 710, LANDMARK BLDG., 8 NORTH DONGSANHUAN RD., CHAOYANG DIS., BEIJING 100004

TEL:+86-10-6590-0192 FAX: 86-10-6590-0117

 

LA OFFICE

SUITE 902 WILSHIRE BUSINESS CENTER 3435 WILSHIRE BLVD LOS ANGELES CALIFORNIA 90010 U.S.A

 

RUSSIA OFFICE

12 KRASNOPRESNENSKAYA RD MOSCOW 123610 RUSSIA

 

LOTTE PHILIPPINES

SMI COMPOUND C RAYMUNDO AVE 1607 MAYBUNGA PASIG NCR PHILLIPPINES

 

LOTTE VIETNAM

41 NGUYEN THI MINH KHAI ST DISTRICT 1 HO CHI MINH VIETNAM

Subsidiary

LOTTE PHARM CO., LTD.(110111-0657788)

(100.0% held by the subject company)

904-8, SANGSIN-RI, HYANGNAM-MYEON, HWASEONG-SI, GYEONGGI-DO 445-922 KOREA

TEL: +82-31-353-4660 FAX: +82-31-353-2195

 

LOTTE CHINA FOODS CO., LTD

(35.96% held by the subject company)

 

LOTTE QINGDAO FOODS CO., LTD

(90.0% held by the subject company)

 

LOTTE PHILIPPINES CO.,INC

(10.0% held by the subject company)

 

LOTTE VIETNAM CO., LTD

(35.71% held by the subject company)

 

LOTTE INDIA CO., LTD

(80.39% held by the subject company)

 

LOTTE TAIWAN CO., LTD

(50.0% held by the subject company)

 

LOTTE FOOD HOLDING CO.,LIMITED

(100.0% held by the subject company)

 

BIBICA CORPORATION

(36.81% held by the subject company)

 

LOTTE EUROPE HOLDINGS B.V.

(26.87% held by the subject company)

 

LOTTE CONFECTIONERY HOLDINGS B.V.

(51.0% held by the subject company)

 

LOTTE FOOD INDIA PVT LTD

(99.99% held by the subject company)

Cooperative Enterprise

The Subject has signed the agreement as below companies for license;

 

Contract for ice cream manufacturing technology with U.S. Wilkes & Associates

- Period: 2005. 10 ~ 2015. 10|

- Payment: Net sales * 1.15%

 

Contract for biscuit manufacturing technology with U.S. Wilkes & Associates.

- Period: 2004. 2 ~ 2014. 2

- Payment : Net sales * 0.75%

 

Contract for snack manufacturing technology with U.S. PepsiCo

- Period : 2006.5 ~ 2009.12

- Payment : Net sales * 3%

 

Contract for snack manufacturing technology with U.S. Miles Willard Technologies

- Period : 2006.9 ~ 2013.3

- Payment : Net sales * 1.0%

 

Contract for Hello Kitty character use with Sanrio Korea

- Period : 2007.1 ~ 2007.12 (Contract renewal negotiation is under way)

- Payment : Net sales * 5.0%

 

Contract for Let's & Go Max character use with Tretoon

- Period : 2007.8 ~ 2008.7

- Payment : Net sales * 1.2%

 

Contract for Pocket Monsters character use with Daewon C&A

- Period : 2007.11 ~ 2008.10

- Payment : Net sales * 1.2

 

-Insured Company

LOTTE NON-LIFE INSURANCE CO., LTD.(110111-0014459)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

2012

2011

2010

Export

91,599

81,008

75,904

Domestic

1,432,627

1,440,959

1,340,565

Total

1,524,226

1,521,967

1,416,469

 

 

Court Action

 

No.

 

News Clipping

 

---

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.62

UK Pound

1

Rs.83.69

Euro

1

Rs.71.41

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.