LOCK & LOCK

1Q12 Earnings Release

May 8, 2012

1.

1Q12 Preliminary Earnings Sales Breakdown by Region Sales Breakdown by Channel Sales Breakdown by Product Category Summary Financials

Contents

2. 3. 4. 5.

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. 1Q12 Preliminary Earnings

In 1Q12, sales rose 14% YoY to W124.1bn and operating profit surged 48% YoY to W21.3bn. Korea domestic sales came in at W37.3bn (+10% YoY), while China registered W64.6bn (+24% YoY or +17% YoY based on RMB) in revenue.

2011 1Q 108,451 55,053 53,398

2011 4Q 119,657 58,949 60,708

2012 1Q 124,127 63,100 61,027

QoQ

YoY

Based on K-IFRS

%84

%72

Net Profit

11,987

13,935

17,758

%14

%91

Pretax income

15,920

18,778

22,434

%84

%51

Operating Profit

14,428

18,517

21,310

%41

%1

Gross Profit

%51

%7

COGS

%41
3

%4

%001

%15

%71

%81

%41

%94

%001

%51

%94

%15

%61

%21

%001

%15

%94

%31

%51

%11

]mmW :tinU[
Sales

% % % % % %

1. 1Q12 Preliminary Earnings Sales & OP Highlights

Total sales grew 14% YoY to W124.1bn - Korea domestic sales increased by 10% YoY to W37.3bn. Despite weak seasonality, Bisfree, outdoor and inplus (household goods containers made of plastic) enjoyed brisk sales. - China showed 24% YoY growth in sales to W64.6bn (17% YoY growth in RMB). Internet saw rising sales thanks to the upbeat sales of glass food containers (Internet-only models), while TV shopping remained strong across the nation. Hot&Cool (thermos) sales swelled on seasonality and growing penetration into hypermarkets. Glass food container sales rose across all distribution channels as the Company had eased the supply shortage.

Operating profit jumped 48% YoY to W21.3bn - Transportation expense grew 43% YoY due to rising TV shopping and Internet sales in China.

Based on K-IFRS

%19-

772-

639,2-

ssol & tiforp gnitarepO-noN

Based on K-IFRS

%33-

%05-

%48-

%05-

%2 %62 %78 %001

YoY

782 250,1 899

741,1 270,1 593

7 3 3,2 Q1 2102 4 1 6,2

822 675,1 894

316 461,2 164,2

2 03, 2 Q1 1102 8 32, 5

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]mmW :tinU[ tiforp gnitarepO-noN ssol gnitarepO-noN

%81-

%02-

%34

%32

%22

%8 %9

YoY

824,11 220,1 181,4 031,6 850,4

026,21

934,93

Q1 2102

045,01 442,1 929,2 307,7 192,3

823,01

430,63

Q1 1102

sesnepxE gnita repO

]mmW :tinU[
noissimmoC selaS noitatropsnarT srehtO tneR gnisitrevdA lloryaP

2. Sales Breakdown by Region

21 Q 1
6% 11% 30% 36% 52% 1Q 12

100% 14% 6% 32% 29% 40% 48% 38% 30% 39% 9% 9% 6% 10% 6% 11%

80%

14% 6%

60%

20%

40%

42%

45%

0% 2008 2009
China Korea Asia

2010
America EU

1Q 11
Japan

2011
Mid asia & Africa

%0 %0 %1 %6 %11 %03 %25

5

%0 %0 %3 %6 %11 %63 %54

110 2

%0 %0 %4 %6 %01 %23 %84

11 Q1

%1 %1 %5 %9 %9 %93 %83

010 2

%1 %1 %6 %41 %6 %03 %24

9002

%1 %1 %9 %41 %6 %92 %04

80 02

acirfA & aisa diM napaJ UE aciremA aisA aeroK ani hC

noigeR

3. Sales Breakdown by Channel Korea

TV shopping Special(B2B) Wholesale Internet 2008 11% 2009 18% 2010 44% 1Q 11 40% 2011 37% 1Q 12 28%

Hyper markets

31%

15% 8%

31%

26%

14% 7%

30%

15%

10%

21%

Owend stores

Franchisee stores Agriculture Coop Department Stores

100% 8% 80% 31% 60% 15% 40% 30% 20% 0% 31% 11% 2008
TV shopping Owend stores

2%

3%

0%

2%

4%

15%

10%

24%

8%

3%

0%

3%

4%

15%

13%

22%

7%

3%

0%

3%

5%

14%

16%

23%

2%

3%

1%

4%

6%

0%

3%

2%

5%

0%

3%

3%

2%

7% 26% 14%

4% 15% 10% 21%

4% 15% 10% 24%

5% 15% 13% 22%

6% 14% 16% 23%

44% 18% 2009

Hyper markets Franchisee stores

40%

37%

28%

2010
Special(B2B) Agriculture Coop

1Q 11
Wholesale Department Stores

2011
Internet

1Q 12

3. Sales Breakdown by Channel China

21 Q 1
9% 14% 15% 16% 22% 23% 1Q 12

100%

7% 19% 7%

7% 19% 7% 17%

9% 16% 13% 18%

11% 17% 8% 14%

10% 16% 12% 16%

80%

60%

12%

40% 46% 20% 9% 2008

TV shopping

41%

30%

33%

26%

0%

9% 2009
Special(B2B)

15% 2010
Hyper markets

17% 1Q 11
Internet Wholesale

20%

2011
Owend stores

%32 %22 %61 %9 %41 %51

7

%02 %62 %61 %01 %61 %21

110 2

%71 %33 %41 %11 %71 %8

11 Q1
%9

%51 %03 %81 %61 %31

0 102
%9 %7 %7

%14

%71

%91

90 02
%9 %7 %7

%64

%21

%91

800 2

stekram repyH

serots dnewO

noisiviD
gnippoh s VT )B2B(laicepS elaselohW tenretnI

3. Sales Breakdown by Channel Southeast Asia

21 Q1
4% 10% 17% 18% 18% 18% 47% 40% 33% 1Q 12
Internet

100% 80% 60% 40% 20% 0%

2% 4% 20% 25% 17%

6% 2% 15% 22%

1% 3% 15% 17%

3% 9% 14% 18%

4% 9% 7% 18% 14%

3% 6% 12% 18%

22% 25% 41% 27%

14%

30%

40%

2010
Special(B2B)

1Q 11
Owend stores

2Q 11
Hyper markets Wholesale

3Q 11
Department stores

4Q 11
TV shopping

2011
Electronics stores

%33 %81 %81 %4 %71 %0 %0 %01

8

%04 %81 %81 %3 %21 %0 %2 %6

1102

%74 %41 %81 %4 %7 %0 %1 %9

11 Q4

%04 %41 %81 %3 %41 %0 %2 %9

11 Q3

%14 %22 %71 %1 %51 %0 %3 %3

11 Q2

%72 %52 %22 %6 %51 %0 %3 %2

11 Q1
%2 %0 %1 %4

%03 %71 %52 %02

0 10 2

serots tnemtrapeD

serots scinortcelE

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)B2B(laicepS

4. Sales Breakdown by Product Category Korea

Food storage container and outdoor sales came in at W18.7bn (+25% YoY) and W8.6bn (+29% YoY), respectively, while the sales of kitchen/living/cookware fell 19% YoY to W10bn.

Food storage containers

[Unit: Wmn]

Bisfree sales grew 9x YoY to W9.5bn on expanding distribution 40,691 37,290

Others 7,527 Others 9,973 Outdoor 12,061 Outdoor 8,585

channels across hypermarkets, corporates, owned stores, Internet and wholesalers. Outdoor Sales increased across the board including Aqua (water bottles) and Lunch Box (lunch boxes). Bisfree Aqua registered W2bn (+72% YoY). Others (kitchen/living/cookware, etc.) Living Box (household goods containers made of fabric) sales slid
Food storage 18,732

33,999
Others 12,377

Outdoor 6,644 Food storage 14,978

Food storage 21,103

40% YoY to W5.8bn due to seasonally slow TV shopping sales (renewed in mid-March; sales likely to pick up in 2Q12). inplus (household goods containers made of plastic) sales soared 160% YoY to W1.9bn.

1Q11 Excluding exports

4Q11

1Q12

4. Sales Breakdown by Product Category Korea

[2011] [1Q12]
COOKWARE 3%

COOKWARE 2% INPLUS 3% LIVING BOX 22% ETC 4%

INPLUS 5%

LIVING BOX 15%

ETC 7%

OUT DOOR 24%

PLASTIC CONTAINER 31%

OUT DOOR 22% PLASTIC CONTAINER 38% CERAMIC 4%

CERAMIC 7% GLASS 5% GLASS 5%

Based on 1Q12 Korea domestic sales

10

4. Sales Breakdown by Product Category China

Food storage container and outdoor sales stood at W30.1bn (+23% YoY) and W19.7bn (+44% YoY), respectively, while the sales of kitchen/living/cookware edged up YoY to W14.7bn.

[Unit: Wmn]

64,570
Others 14,729

52,175 51,400
Others 14,107 Others 12,709

Food storage containers Glass container sales climbed 72% YoY to W16.3bn on brisk sales across all distribution channels and easing supply constraints. The Company has added one more glass OEM in China in January and its in-house glass factory in Vietnam has started commercial production in March, easing the supply shortage. Outdoor Hot&Cool (thermos) sales soared 194% YoY to W8.1bn on seasonal demand, new item launches and further penetration into hypermarkets. Sales were strong across all distribution channels. Aqua (water bottle) sales were up 11% YoY to W11.3bn backed by rising shipments to corporate and wholesale customers.

Outdoor 19,739

Outdoor 13,673

Outdoor 13,843

Food storage 24,395

Food storage 24,848

Food storage 30,102

Others (kitchen/living/cookware, etc.) Living Box (household goods containers made of fabric) sales went up 17% YoY to W8.6bn on upbeat TV shopping sales and growing sales volume at hypermarkets and owned stores. Cookplus (cookware) sales rose 23% YoY to W2.1bn on strong demand from corporate customers. 11

1Q11

4Q11

1Q12

4. Sales Breakdown by Product Category China

[2011]
COOKWARE 3%

[1Q12]
COOKWARE 3%

ETC 4% LIVINGBOX 16% PLASTIC CONTAINER 26%

ETC 5%

LIVINGBOX 14%

PLASTIC CONTAINER 19%

OUT DOOR 30%

OUT DOOR 31%

GLASS 26%

GLASS 22%

CERAMIC 1%

CERAMIC 3%

12

4. Sales Breakdown by Product Category Southeast Asia

Food storage container sales slipped YoY to W2.7bn, while outdoor sales jumped 52% YoY to W2.8bn. The sales of kitchen/living/cookware dropped 32% YoY to W0.8bn.

[Unit: Wmn]

8,474
Others 2,065

Outdoor Aqua (water bottle) sales surged 86% YoY to W2bn on rising shipments to corporate customers in Indonesia, Thailand and Vietnam (Ho Chi Minh). Thailand Since 4Q11, sales have been quickly recovering to early-2011 levels. Robust TV shopping sales expected in 2H12 ~ 2011: Room for effective distribution channel mix remained limited due to differing retail market conditions (eg. regulations) among Southeast Asian countries. 2012 ~: Newly-added TV shopping companies should improve the efficiency of the Companys distribution channel setup. Thailand: True GS Shopping, CJO Shopping Vietnam: CJO Shopping, Lotte Home Shopping, ViVi Home Shopping (GS)

6,381
Others 829

5,864
Others 1,227 Outdoor 2,307

Outdoor 1,867 Food storage 2,770 Food storage 4,102

Outdoor 2,840

Food storage 2,712

1Q11

4Q11

1Q12

13

4. Sales Breakdown by Product Category Southeast Asia

[2011]
COOKWARE 4% LIVING BOX 1% ETC 17%

[1Q12]

COOKWARE 4% LIVING BOX 1% ETC 16%

OUT DOOR 31% PLASTIC CONTAINER 36%

OUT DOOR 40% PLASTIC CONTAINER 35%

CERAMIC 2%

GLASS 10%

GLASS 3%

CERAMIC 0%

14

7 899,8 425,2030,5621 0

4 14,5 4 8 75,1

151,1 686,24 217 217 673 711,1 347,3 161,1 901,7 637,5 977,2943,53 503,83

7 38,3 4

102 850,522 853,9 780,41386,413 005,72 535,53 671,321 243 42 243,,42 267,6 078,01 779,232 338,7 487,282 870,22 642,721 713,982 146,834

5 24,1 27 4 17,2 65

1 17,8 51

802 650,432 438,6 711,91908,413 005,72 686,63 268,561 350 52 350,,52 831,7 889,11 027,632 499,8 398,982 418,72 764,421 666,423 649,674

938,667 192,465

845,202 938,667

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YTIUQE & SEITILIBAIL LATOT YTIUQE LATOT

4 14,5 4

5 24,1 27

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SEITILIBAIL LATOT STESSA LATOT

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11 02

21 Q1

snoitpircseD

5. Summary Financials Balance Sheet

Based on K-IFRS

15

077,5
34 7 31 5 , 6 86 3 18 8 , 6 95 6 , 2 50 4 , 3 82 6 , 7 84 0 , 8 67 6 , 51

889,11
339 , 3 129 , 51 294 , 1 924 , 41 639 , 2 430 , 63 993 , 35 250 , 55 154 , 801

857,71
67 6 , 4 43 4 , 22 42 1 , 1 01 3 , 12 77 2 93 4 , 93 72 0 , 16 00 1 , 36 72 1 , 42 1

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110 2

21 Q1

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5. Summary Financials Income Statement

Based on K-IFRS

16

e m o c nI t e N