* Related matter on CJ E&M
1. Title: Cancellation of investments in new facilities
CJ O Shopping had determined to invest KRW 64.8 billion in new facilities in the Mega Hub Terminal located in Gwangju, Gyeonggi-do, jointly with CJ Logistics on Oct. 10, 2013 before the merger. The construction is in its final stage. However, the company decided to cancel the investments in new facilities to mitigate financial burden and lease some facilities after the completion. This conclusion was made to minimize Capex in new logistics complex with consideration for cash flows and changes in management plan including M&A strategy and investments in new businesses. Existing logistics centers in Gunpo and Bugok for commerce business including TV home shopping and other logistics centers for online business will be relocated to the Mega Hub Terminal in 2019 to ensure higher operational efficiency.
3. Date of conclusion: Dec. 19, 2018