IR Presentation

As a note, it is suggested to use this material only as a reference, as it contains information and data that are subject to changes without prior notice due to uncertainties, changes in the organizational structure, redefinition of accounting policies, etc., and may cause the actual results to differ from those stated or implied in this material.
AMOREPACIFIC Corp. is a newly created company after the corporate restructuring in June 2006, and as AMOREPACIFIC Corp. continues the core business of the pre-demerger company, the information in this material is based on such operations, assuming no demerger for ease of comparison with the past data.

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Table of Contents

Company Overview

Vision History Sustaining Growth Enhancing Profitability Sale Breakdown Leading the Domestic Market Overseas Business

Business Overview

Appendices

Financial Summary Corporate Governance AMOREPACIFIC in Global Market

[2]

Company Overview

Vision by 2015

Asian Beauty Creator

Global total-care provider of Beauty & Health

Aiming For 2015

Beauty
Outer Beauty 10 Mega-brands KRW 4 tn

Health
Inner Beauty 5 Mega-brands KRW 1 tn

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

[3]

Company Overview

Vision by 2015

The companies under PACIFIC group share the same vision of becoming the Asian Beauty Creator, a global player that creates new standards for Asian beauty, both inner and outer, and promotes Asian beauty to the global audience. To achieve this vision, AMOREPACIFIC is putting efforts into nurturing a strong portfolio of mega-brands in the area of beauty and health, simultaneously strengthening its presence in the overseas market.

Sales of KRW 5tn

Beauty
80% of total sales KRW 4tn Outer Beauty Global Top 10 10 mega-brands

Become the Asian Beauty Creator

Accelerate expansion in China Strengthen brand portfolio while developing new markets

Overseas (KRW 1.2tn)

AMOREPACIFIC, Etude, AMOS Professional, etc. 30% sales contribution from overseas

Expand Beauty & Health related businesses Develop strategic joint ventures

Overseas

New Business Distribution

Proactively respond to changes in the distribution network Sustain market visibility

Customers Health
KRW 1tn 20% of total sales Inner Beauty Lifetime Health 5 mega-brands AMOREPACIFIC, Pacific Pharmaceuticals, etc. Develop niche markets through customer segmentation Launch new products through intensified R&D and marketing activities

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

[4]

Company Overview

History

For more than 60 years, AMOREPACIFIC has been devoted to the business of Beauty and Health, consistently striving to be the best with focus on technology, quality and customers. AMOREPACIFIC has maintained its position as Koreas leader in the field of cosmetics and is now looking beyond into becoming the Asian Beauty Creator, a major global player that redefines and promotes the Asian beauty to customers all over the globe.

1945 Early Years

1968 Growth Stage

1991 Innovation Stage

1997 Entering the Global Arena

2002 Launched

1945 Founded

1971 Initiated

Koreas first makeup campaign public

1991 Refocus on

Beauty & Health business

Laneige in Hong Kong

1954 Koreas first

cosmetics R&D center to-door sales method

1973 Company goes

1992 Declared

Management Philosophy Commitment initiatives

2004 Announced
Global Vision 2015 company restructuring
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1964 Adopted door-

1990 Opened office

in Paris, France

1993 Declared Total

2006 Holding

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

Business Overview

Sustaining Growth

Since 2000, AMOREPACIFIC has generated sustainable sales in both the domestic and overseas markets. In the upcoming years, the company is expected achieve 10% sales growth in the domestic market while expanding into the overseas market with more than 20% sales growth annually.

Domestic Sales Trend (KRW bn)

15.5% 12.8% 9.1% 5.5% 6.6% 1,531 1,357 1,273 1,167 249 295 1,769 22.3%

Overseas Sales Trend (KRW bn)

43.2% 34.0% 20.9% 11.6% 283 12 97

262

234 9 157 1,474 175 8 78 96

250
256 1,270 911

109 9 47 53

9
63

1,023

1,108

174 85 89 129

2005

2006

2007 MC&S

2008

2009 Growth Rate (%) 2005 Asia 2006 France 2007 USA 2008 2009 Growth Rate (%) [6]

Cosmetics

* MC&S (Mass Cosmetics and Sulloc): Personal Care and Green Tea Business

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

Business Overview

Enhancing Profitability

Gradual margin enhancement is expected for the domestic business through better product mix and distribution efficiencies, added with TCR efforts throughout all divisions. As for the overseas, profitability is still in the red due to the Companys expansion efforts, but is gradually enhancing as the Company expects to break even after 2010.

Domestic Profitability Trend

70.3% 71.3% 2005

Overseas Net Profits Trend (KRW bn)

2006 2007 2008 2009 5 -2 -6 -2

69.4%

69.0%

69.6%

-5
-9

-4 -4 -3

18.7%

18.1%

18.3%

16.7%

17.0%

-7 -9 -4 -2 -16 -4 -14 -20

-18
-4 -26 2005 2006 OP Margin 2007 2008 GP Margin 2009 Asia France US

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

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Business Overview

Sales Breakdown

Domestic Sales Breakdown Cosmetics

Outstanding R&D, creative marketing and customer service Strong brand cultivation and regional expansion
83%

Personal Care & Green Tea

Focus on hair, body, oral and green tea products
2009 Sales
17%

Simple and concentrated branding efforts Developing Korean tea culture

Solidifying competitiveness in the Asian market

Sales Breakdown by channel

22% 7% 5% 11% 16%
3%

20% 6% 5% 12% 16%

3%

18% 6% 6% 14% 17%

3%

17% 6%
4%

17% 5%
5%

9% 14% 17%

9% 15% 17%

37%

38%

37%

35% 2008

32% 2009

Personal Care & Green Tea Others* Internet & Home shopping Discount store Specialty store Department store Door-to-door

2005

2006

2007

* Other sales include direct sales, export sales and other minor sales

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

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Business Overview

Leading the Domestic Market

AMOREPACIFIC has been outperforming the cosmetics market, strengthening its competency in the field of Beauty and Health. The Company is adding efforts to build stronger brands by appropriately responding to market changes and needs, and is also taking the initiatives to adopt a more balanced channel portfolio.

Domestic Market Size and APs Market Share

43.4%
45.6% 44.2% 43.0% 42.2% 35.1% 24.8%
(KRW TN, Retail Value)

Premium* Total

32.7%
17.2%

35.2% 19.6%

34.3% 20.2%

34.3%
21.7%

Mass**

* Premium Channels include Department stores and Door to Door ** Mass Channels include Specialty stores and Discount stores

7.4 5.2

5.4

5.9

6.6

2005

2006

2007

2008

2009
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AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

Business Overview

Overseas Business

As the world is consolidating into a one-big-market, AMOREPACIFIC is accelerating its globalization efforts to construct a strong foothold in the world market. AMOREPACIFICs overseas operations are employing local professionals with vast experience and knowledge on each regions market and customers for successful launches and expansion.

Sales by Region

(In KRW bn)

'09

MARKETING
France
First introduction in 1997, nurtured lolita Lempicka to become one of the top 5 fragrances in France Lolita Lempicka expanding globally introducing its second line in 2006 and third line in 2009

97
96

'08 '09 '08 12 9

'09 '08

174

129

GROWTH
Asia
The main focus of AMOREPACIFICs overseas expansion

The United States

Enhance brand awareness AMOREPACIFIC, with 30 locations across the United States

Introduction of domestic brands into the department stores

Laneige, with more than 400 counters across Asia

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

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APPENDIX

Financial Summary

Income Statement
(KRW bn) 2008 % 2009 %
100.0

Balance Sheet
(KRW bn) Asset
Current Asset

2008.12 1,455.2 445.1 1,010.0 339.9 199.4 140.4 1,115.3 34.5 712.7 -1.4 30.9 338.6

2009. 12 1,664.0 550.3 1,113.8 364.3 217.2 147.1 1,299.7 34.5 712.7 -1.8 24.4 529.9

Sales

1,531.3

100.0 1,769.0

Gross Profit
SG&A Expense

1,066.3
811.1

69.6 1,261.1 53.0 16.7 960.5

71.3 54.3

Non-current Asset

Liability
Current Liability

Operating Profit
Non-operating Profit Non-operating Expense

255.2
35.2 46.1

300.6
33.3 34.6

17.0

Non-current Liability

Shareholders Equity
Capital Capital Reserve 16.9 Capital Adjustment Accumulated Other

Income Before Taxes

244.3

16.0

299.3

Net Profit

170.2

11.1

225.9

12.8

Inclusive Gain and Loss Retained Earnings

AMOREPACIFIC 2010. Proprietary and Confidential. All Rights Reserved.

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www.amorepacific.co.kr Headquarters: Amorepacific Bldg., 181, Hangangro 2 Ga, Yongsan Gu, Seoul, Korea 140-777 TEL: 82-2-709-5103 / FAX: 82-2-709-5339 / Email: IR@amorepacific.com