LOCK & LOCK

3Q12 Earnings Release

November 6, 2012

Contents

1. 2. 3. 4. 5.

3Q12 Preliminary Earnings Sales Breakdown by Region Sales Breakdown by Channel Sales Breakdown by Product Category Summary Financials

This document has been prepared by Lock & Lock, Co., Ltd. This document contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. This document is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented.

1. 3Q12 Preliminary Earnings

In 3Q12, sales increased 5% YoY to W128.9bn and operating profit fell 13% YoY to W21.4bn. China sales were W68.8bn (+23% YoY or +15% YoY on RMB terms) while Korea registered W39.2bn (-19% YoY) in revenue.

[Unit: Wmm]

2011 3Q 122,721
100%

2011 2Q 136,430
100%

2012 3Q 128,878
100%

QoQ

YoY

Sales
%

-6%

5%

COGS
%

58,701
48%

72,477
53%

65,841
51%

-9%

12%

Gross Profit
%

64,020
52%

63,953
47%

63,037
49%

-1%

-2%

Operating Profit
%

24,590
20%

20,021
15%

21,384
17%

7%

-13%

Pretax income
%

21,576
18%

20,715
15%

21,675
17%

5%

0%

Net Profit
%
Based on K-IFRS

16,104
13%

16,125
12%

17,153
13%

6%

7%

1. 3Q12 Preliminary Earnings Sales & OP Highlights

Total sales grew 5% YoY to W128.9bn. - Korea domestic sales decreased 19% YoY to W39.2bn. Sales through TV shopping remained particularly sluggish. - China sales continued a solid growth of 23% YoY to W68.8bn (15% YoY growth in RMB). Sales were upbeat across all distribution channels; by product category, sales were driven by glass food containers, Hot&Cool (thermos), Aqua (regular plastic water bottle) and household goods organizers. Operating profit climbed 7% QoQ but dropped 13% YoY to W21.4bn.

- Transportation cost grew by W1.3bn (35% YoY) due to rising Internet and TV shopping sales in China and the franchisee
store expansion in Korea/China. - Rent increased by W1.6bn (58% YoY) as overall rent for owned brand shops edged up in both Korea and China.

[Unit: Wmm] Payroll Advertising Transportation Rent Sales Commission Others

Operating Expenses

2011 3Q
10,647 1,178 3,640 2,762 7,702 12,895 38,824

2012 3Q
11,573 1,727 4,916 4,365 5,257 15,371 43,210

YoY
9% 47% 35% 58% -32% 19% 11%

[Unit: Wmm] Other Operating profit Gain on Foreign currency translations Gain Foreign currency transactions Others Other Operating loss Loss on Foreign currency translations Loss Foreign currency transactions Others Net Other Operating profit
Based on K-IFRS

2011 3Q
6,397 1,995 3,946 456 6,705 1,818 3,754 1,133 -308

2012 3Q
3,017 1,551 131 1,335 1,461 21 315 1,126 1,556

YoY
-53% -22% -97% 193% -78% -99% -92% -1% N/A

Based on K-IFRS

2. Sales Breakdown by Region

Region

2008 40% 29% 6% 25%

2009 42% 30% 6% 21%

2010 38% 39% 9% 15%

3Q 11 46% 39% 9% 6%

2011 45% 36% 11% 9%

1Q 12 52% 30% 11% 7%

2Q 12 50% 34% 11% 5%

3Q 12 54% 30% 11% 4%

China Korea Asia ROW

100% 25% 80% 6% 21% 6% 15% 9%

6% 9%

9% 11%

7% 11%

5% 11%

4% 11%

60%
29% 40%

39% 30% 39%

36%

30%

34%

30%

20%

40%

42%

38%

46%

45%

52%

50%

54%

0% 2008 2009 2010

China

3Q 11
Korea Asia

2011
ROW

1Q 12

2Q 12

3Q 12
5

3. Sales Breakdown by Channel Korea

2008 Hypermarkets TV shopping Corporates Wholesale Brand shops Internet 42% 10% 14% 31% 2% 8% 2009 41% 18% 14% 26% 2% 7% 2010 26% 44% 10% 15% 3% 4% 3Q 11 19% 44% 14% 12% 7% 4% 2011 25% 37% 13% 15% 6% 5% 1Q 12 28% 28% 16% 14% 8% 6% 2Q 12 29% 30% 13% 13% 7% 7% 3Q 12 31% 24% 14% 14% 12% 6%

100% 80% 60% 40% 20%

2% 31% 14% 10%

2% 26% 14% 18%

4% 3% 15% 10%

4% 7% 12% 14%

5% 6%

6% 8%
14% 16% 28%

7% 7%
13% 13% 30%

6% 12% 14% 14% 24%

15%
13%

44%

44%

37%

42%

41%

26% 0%
2008 2009
Hypermarkets

19% 3Q 11
Corporates

25% 2011
Wholesale

28%

29%

31%

2010
TV shopping

1Q 12
Brand shops

2Q 12
Internet

3Q 12

3. Sales Breakdown by Channel China

2008 Corporates TV shopping Wholesale Hypermarkets Internet Brand shops 100% 46% 9% 19% 12% 7% 7% 2009 41% 9% 19% 17% 7% 7% 9% 13% 18% 19% 16% 9% 15% 2010 30% 15% 16% 18% 13% 9% 3Q 11 22% 22% 15% 16% 15% 9% 10% 12% 16% 16% 20% 2011 26% 20% 16% 16% 12% 10% 9% 15% 16% 1Q 12 22% 23% 14% 16% 15% 9% 8% 2Q 12 24% 23% 16% 15% 14% 8% 10% 14% 16% 3Q 12 24% 20% 16% 16% 14% 10%

7% 7%
12% 19% 9%

7% 7% 17%

9%
15% 16%

80%

14%
15% 16%

60%

14%

16%
20%

40% 46%

15%
41% 30%

22%

23%

23%

20%

22%

26%

22%

24%

24%

0% 2008 2009
Corporates

2010
TV shopping

3Q 11
Wholesale

2011
Hypermarkets

1Q 12
Internet

2Q 12
Brand shops

3Q 12 7

3. Sales Breakdown by Channel Southeast Asia

2010 Corporates Brand shops 30% 22% 2Q 11 41% 27% 3Q 11 40% 25% 2011 40% 26% 2Q 12 29% 24% 3Q 12 33% 33%

Hypermarkets
TV shopping Wholesale Internet

25%
2% 20% 0%

17%
1% 15% 0%

18%
3% 14% 0%

18%
3% 12% 0%

19%
5% 22% 1%

20%
8% 6% 0%

100%
80% 20% 2% 25%

15% 1% 17% 27%

14% 3% 18% 25%

12% 3% 18%

22% 5% 19%

6% 8% 20% 33%

60%
40%

26%
24%

22%

20%
0%

30%
2010
Corporates

41%

40%

40%

29% 2Q 12
Wholesale Internet

33%

2Q 11
Brand shops

3Q 11
Hypermarkets

2011
TV shopping

3Q 12

4. Sales Breakdown by Product Category Korea

The sales of food storage container, outdoor and kitchen/living/cookware fell 13% YoY, 6% YoY, 33% YoY to W20.1bn,

W8bn and W11.1bn, respectively.

[Unit: Wmn]

Food storage containers Bisfree (premium plastic) sales dropped 7% YoY to W11.8bn, while

48,201 45,775
Others 16,431

Classic (regular plastic) sales climbed 19% YoY to W3.4bn. 39,260

Others 12,916

Outdoor The sales of Bisfree Aqua (premium plastic water bottle) soared 65% YoY to W2.6bn. Aqua (regular plastic water bottle) sales decreased 24% YoY to W1.8bn. Others (kitchen/living/cookware, etc.)

Others 11,125

Outdoor 8,577 Outdoor 14,007 Outdoor 8,020

Food storage 23,193

Living Box (household goods containers made of fabric) sales slipped

Food storage 18,852 Food storage 20,115

75% YoY to W3.2bn due to seasonally weak demand from TV shopping, three years after launch.

3Q11 Excluding exports

2Q12

3Q12

4. Sales Breakdown by Product Category Korea

[2011] [3Q12]

COOKWARE 2% INPLUS 3%
LIVING BOX 22%

INPLUS 5% COOKWARE 2%

ETC 4%

ETC 17%

LIVING BOX 8%

OUT DOOR 24%

PLASTIC CONTAINER 31%

OUT DOOR 20% PLASTIC CONTAINER 43%

CERAMIC 2%

CERAMIC 7% GLASS 5%

GLASS 4%

Based on 3Q12 Korea domestic sales

10

4. Sales Breakdown by Product Category China

The sales of food storage container, outdoor and kitchen/living/cookware grew 20% YoY, 42% YoY, 37% YoY to

W27.7bn, W21.4bn and W19.8bn, respectively.

Food storage containers Glass container sales surged 52% YoY to W15.4bn, showing strong growth across all distribution channels.

[Unit: Wmn]

68,828 68,150

55,865
Others 14,469

Others 25,535

Others 19,770

Silby (ceramic) showed more than 10-fold sales increase to W1bn (vs 700mn in 3Q11) on rising sales through brand shops and Internet.
Outdoor Hot&Cool (thermos) sales rose 138% YoY to W7.3bn as consumers in Tier 1 cities increasingly traded up to higher-end products. Aqua (regular plastic water bottle) sales were up 16% YoY to W13.7bn on seasonal demand. Others (kitchen/living/cookware, etc.) Living Box (household goods containers made of fabric) sales grew 11% YoY to W8bn on brisk demand from TV shopping, Internet and hypermarkets. Cookplus (cookware) sales soared 117% YoY to W2.4bn on strong demand from TV shopping, wholesale and corporate customers. Small home appliances showed a steady growth trend, representing 11% of total sales through TV shopping (eg. Huplus electric massager, Eco Fryer no-oil fryer) 11

Outdoor 18,384 Outdoor 15,009

Outdoor 21,375

Food storage 23,034

Food storage 24,231

Food storage 27,683

3Q11

2Q12

3Q12

4. Sales Breakdown by Product Category China

[2011]
COOKWARE 3%
COOKWARE 4%

[3Q12]

ETC 4%

ETC 9%

LIVINGBOX 16%
PLASTIC CONTAINER 26%

LIVINGBOX 12% PLASTIC CONTAINER 17%

OUT DOOR 33%

OUT DOOR 30%

GLASS 24%

GLASS 22%

CERAMIC 1%

CERAMIC 1%

12

4. Sales Breakdown by Product Category Southeast Asia

Food storage container sales decreased 31% YoY to W2.3bn, while the sales of outdoor and kitchen/living/cookware rose 32% YoY and 108% YoY to W2.5bn and W1.5bn, respectively.

[Unit: Wmn]

Outdoor Aqua (regular plastic water bottle) sales were up 33% YoY to W1.4bn on brisk demand from brand shops, department stores and corporate customers. Others (kitchen/living/cookware, etc.) Various products were introduced including inplus (household goods containers made of plastic) and Eco Mug (ceramic cups), driving the sales of these categories.

6,417 6,010
Others 710 Outdoor 1,911 Outdoor 2,480 Others 919

6,326
Others 1,474

Outdoor 2,526

Food storage 3,389

Food storage 3,018

Food storage 2,326

2Q11

1Q12

2Q12

13

4. Sales Breakdown by Product Category Southeast Asia

[2011] [3Q12]

COOKWARE 4%

LIVING BOX 1%
ETC 16%

COOKWARE 3% ETC 22% LIVING BOX 1%

OUT DOOR 31%

PLASTIC CONTAINER 36%
OUT DOOR 38% PLASTIC CONTAINER 33%

CERAMIC 2%

GLASS 10%

GLASS 2%

CERAMIC 0%

14

5. Summary Financials Balance Sheet

[Unit: Wmn]

Descriptions
Current Assets Quick Assets Inventories Other Current Assets Non-Current Assets Investments Property&Equipment Intangible Assets Deferred Tax Assets Other Non-Current Assets TOTAL ASSETS Current Liabilities Non-Current Liabilities TOTAL LIABILITIES Capital Stock Additional Paid-in and Other Capital Capital Adjustment Accumulated Other Comprehensive Income Earned Surplus External Shareholder's Equity TOTAL EQUITY TOTAL LIABILITIES & EQUITY
Based on K-IFRS

3Q 12 442,886 283,361 124,724 34,801 334,153 9,497 279,026 11,778 7,504 26,349 777,039 151,909 35,207 187,116 27,500 314,809 -19,117 -784 267,363 152 589,924 777,039

2011 438,641 289,317 127,246 22,078 282,784 7,833 232,977 10,870 6,762 24,342 721,425 123,176 35,535 158,711 27,500 314,683 -14,087 9,358 225,058 201 562,714 721,425

Increase/ Decrease
4,245 -5,956 -2,522 12,723 51,370 1,664 46,049 908 742 2,007 55,615 28,732 -328 28,404 0 126 -5,030 -10,142 42,305 -49 27,210 55,615

15

5. Summary Financials Income Statement

[Unit: Wmn]

Descriptions Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Other Operating Profit and Loss Operating Income Financial Profit and Loss and the rest Income and Loss Before Income Taxes Income Tax Expenses Net Income
Based on K-IFRS

3Q 12

3Q 11

Increase/ Decrease 122,721 58,701 64,020 39,123 -308 24,590 -3,014 21,576 5,472 16,104 6,157 7,140 -983 4,087 -1,248 -3,206 3,305 99 -950 1,049

128,878 65,841 63,037 43,210 1,556 21,384 291 21,675 4,522 17,153

16