Lotte Shopping Co., Ltd.

Investor Relations

2011 First Quarter Results

June, 2011

Disclaimer

The financial information in this document are consolidated earnings results based on K-IFRS. The previous earnings results have also been restated in compliance with K-IFRS. This release includes preliminary figures that are still undergoing independent auditor review. The actual results may differ from those included in this release due to a variety of factors. Lotte Shopping Company undertakes no obligation to update or revise the preliminary provided in this release.

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A Leading Retailer in Korea Table of Contents

1. Q1 FY2011 Consolidated Financial Results

2. Q1 FY2011 Consolidated Financial Results by Division

3. Non-Operating Profit Analysis

4. Appendix.

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2011 First Quarter Highlights

Revenue up 27.3% YoY

– Strong SSSG in Department Store of +13.2%

– Increased M/S of Hypermarket business driven by its same store sales growth and GS store

acquisition

– Robust revenue growth of major subsidiaries above 50% year on year

Operating Profit up 18.1% YoY

– Continued margin improvement in Hypermarket business both in domestic and overseas

– Increased profit in Major subsidiaries

(Credit Card +22.7%, Home shopping +50.9%)

K-IFRS Adoption

– Once again proves Lotte Shopping’s dominant position in the market

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Consolidated Financial Results (K-IFRS)

Q1 FY’10 Q1 FY’11 YoY

Gross Sales 4.5 tr 5.7 tr +27.3%

Operating Profit 379 448 +18.1%

Profit before tax 393 441 +12.2%

Net Profit 299 342 +14.3%

(Unit : billion KRW)

*Number of consolidated affiliates: 34

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Q1 FY’10 Q1 FY’11 YoY

Sales Revenue

4,471 (100%) 5,690 (100%) +27.3%

Department Stores 1,720 (38.6%) 2,108 (37.2%) +22.6%

Hypermarkets 1,757 (39.5%) 2,169 (38.2%) +23.4%

Finance 298 (6.7%) 380 (6.7%) +27.8%

Others* 697 (15.6%) 1,034 (18.2%) +48.4%

Operating Profit 379 8.5% 448 7.9% +18.1%

Department Stores 216 12.6% 241 11.4% +11.3%

Hypermarkets 76 4.3% 90 4.2% +18.6%

Finance 58 19.5% 73 19.1% +25.1%

Others* 29 4.3% 44 4.4% +53.5%

Financial Summary by Division (K-IFRS)

(Unit : billion KRW)

* includes consolidation adjustments 6

Q1 FY’10 Q1 FY’11 YoY

Sales Revenue

1,720 (100%) 2,108 (100%) +22.6%

Lotte Department Stores 1,621 (94.2%) 1874 (88.9%) +15.7%

Lotte Midopa 99 (5.8%) 107 (5.1%) +7.6%

Lotte Square - 127 (6.0%) -

Operating Profit 216 12.6% 241 11.4% +11.3%

Lotte Department Stores 201 12.4% 218 11.6% +8.4%

Lotte Midopa 15 15.6% 16 14.7% +1.5%

Lotte Square - 8 5.9% -

EBITDA 245 14.3% 280 13.3% +14.1%

Lotte Department Stores 228 14.0% 251 13.4% +10.3%

Lotte Midopa 18 17.8% 18 16.8% +1.1%

Lotte Square - 11 -

Department Stores (K-IFRS) (Unit : billion KRW)

*Includes: 30 Lotte Department Stores (inc. Young Plazas & Outlets) / 1 Midopa store / 3 Lotte Square stores

Key Factors

Revenue: Up 22.6% YoY (SSSG +13.2%)

Steady Growth in all product category:

Luxury Goods + 32.5%, Sportswear & Kids +19.2%,

Home Appliances +18.3%, Women’s Wear +10.6%

OPM slightly declined due to

- increased depreciation of new stores

- consolidation of 3 Lotte Square stores

- increased lease expense caused by sale & lease back

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Q1 FY’10 Q1 FY’11 YoY

Sales Revenue

1,757 (100%) 2,169 (100%) +23.4%

Domestic 1,251 (71.3%) 1,599 (73.8%) +27.8%

Overseas 506 (28.7%) 570 (26.2%) +12.7%

Operating Profit 76 4.3% 90 4.2% +18.6%

Domestic 70 5.6% 86 5.4% +22.5%

Overseas 6 1.2% 5 0.8% -25.4%

EBITDA 111 6.3% 131 6.0% +17.9%

Domestic 96 7.7% 116 7.2% +20.8%

Overseas 16 3.1% 15 2.7% -1.0%

Hypermarkets (K-IFRS) (Unit : billion KRW)

Overseas Domestic

Included Entities: China, Indonesia, Vietnam

Revenue: Up 12.6% (SSSG +4.3%)

Enhancing Operation Efficiency by improving

- Revenue per person

- Private Brands

- Product-mix

Stores: China 81, Indonesia 22, Vietnam 2

Revenue: Up 27.8% YoY (SSSG +5.7%)

OPM: 5.4%, Down 0.2%p YoY

Private Brands revenue: 24.4% of total sales

- Margin decreased due to one-time loss of 16 billion KRW

caused by Guro store sales & lease back

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Key Factors

Operating Revenue up 27.8% YoY, Operating Profit up 22.7% YoY

Market Share: 7.4% (FY10) → 8.0% (FY11 1Q)

Average borrowing interest rate down 0.44%p (5.03% → 4.59%)

Lotte Card (K-IFRS)

FY’10 FY’11

Q1 Q2 Q3 Q4 Q1

Transaction Volume 8.9 8.4 10.0 11.1 11.2

No. of Card Holders 9,006 9,322 9,659 10,010 10,308

Delinquency Rate 1.44 1.49 1.69 1.46 1.77

Q1 FY’10 Q1 FY’11 YoY

Operating Revenue 298 380 27.8%

Credit Purchase 150 187 25.1%

Card Loan & Cash Advance

92 111 20.5%

Others 56 82 47.0%

Operating Expense 239 309 29.0%

SG&A 20 23 15.5%

Finance Expense 38 53 41.9%

Loan Loss Provision 21 23 7.9%

Card Expense 98 132 34.4%

General Expense 62 78 24.3%

Operating Profit 59 71 22.7%

Q1 FY’10 Q1 FY’11

Credit Purchase 58.3% 55.9%

Card Loan 18.2% 22.7%

Cash Advance 18.6% 16.1%

Installment & lease 4.9% 5.4%

Income Statement Summary Transaction Volume & Other Highlights

Earning Asset Portfolio

(Unit : tr. KRW, thousand, %)

(Unit : billion KRW)

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Q1 FY’10 Q1 FY’11 YoY

Sales Revenue 697 1,034 +48.4%

Lotte Super 319 399 +25.1%

Lotte Home shopping 140 169 +20.8%

Korea Seven 205 **414 +102.1%

Others* 33 51 +59.4%

Operating Profit 29 44 +53.5%

Lotte Super 9 11 +28.0%

Lotte Home shopping 17 26 +50.9%

Korea Seven -1 **8

Others* 4 -1

Other Subsidiaries

(Unit : billion KRW)

* includes consolidation adjustments ** includes Buy The Way

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Non-Operating Profit Analysis

(unit: billion KRW) Q1 FY’10 Q1 FY’11 YoY

Operating Profit 380 (8.5%) 448 (7.9%) +18.1%

Finance Income 78 (1.8%) 96 (1.7%) +23.2%

Finance Expense 76 (1.7%) 119 (2.1%) +56.4%

Equity Methods 12 (0.3%) 16 (0.3%) +36.7%

Profit Before Tax 393 (8.8%) 441 (7.8%) +12.2%

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Appendix

Consolidated Affiliates under K-IFRS

Income Statement (K-IFRS)

Balance Sheet (K-IFRS)

Store Network

Overseas Hypermarkets Result

Affiliate Ownership Established Principal Business

Lotte Midopa Co., Ltd. 79.0 % 1964.08.31 Department Stores

Lotte Card Co., Ltd. 92.5 % 2002.12.03 Credit Card and lending

eB Card Co., Ltd. 95 % 2009.10.19 Electronic Banking Business

Gyeonggi Smartcard Co., Ltd. 100.0 % 2005.05.20 Electronic Banking Business

Inchon Smartcard Co., Ltd. 100.0 % 2006.04.23 Electronic Banking Business

Chungnam Smartcard Co., Ltd. 100.0 % 2008.05.06 Electronic Banking Business

Woori Home Shopping & Television Co., Ltd. 53.0 % 2001.05.29 TV home shopping

Korea Seven Co., Ltd. 51.4 % 1999.05.16 Convenience Stores

Buy The Way Inc. 100.0 % 1990.06.30 Convenience Stores

Lotte Boulangerie Co., Ltd. 90.5 % 2000.09.05 Bakery, Confectionary

Lotte Square Co., Ltd. 100.0 % 2010.04.22 Department Stores

NCF Co., Ltd. 94.5 % 2003.03.05 Apparel Manufacturing

Lotte Gimhae Development Co., Ltd. 100.0 % 2010.03.08 Development

Lotte Suwon Station Shopping Town Co., Ltd. 95.0 % 2010.04.30 Retail

Sprint Fourth Securitization Specialty 0.9 % 2009.05.11 Special Purpose Company

Supreme First Securitization Specialty 0.9 % 2008.03.11 Special Purpose Company

Supreme Second Securitization Specialty 0.9 % 2010.02.22 Special Purpose Company

Supreme Third Securitization Specialty 0.9 % 2010.12.06 Special Purpose Company

Consolidated Affiliates * 34 Consolidated Companies

Domestic: 18 Affiliates

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Affiliate Ownership Established Principal Business

Lotte Vietnam Shopping Co., Ltd. 80.0 % 2006.11.29 Hypermarkets

Qingdao Lotte Mart Commercial Co., Ltd. 100.0 % 2007.12.28 Hypermarkets

Lotte Mart Co., Ltd. 100.0 % 2008.06.02 Hypermarkets

Lotte Shopping Holdings(Singapore), Ltd. 100.0 % 2008.08.08 Holding Company

PT Lotte Shopping Indonesia 80.0 % 1989.10.19 Hypermarkets

PT Lotte Mart Indonesia 100.0 % 2009.09.28 Holding Company

Lotte Shopping Holdings(Hongkong), Ltd. 100.0 % 2008.08.12 Holding Company

Lotte Mart China Co., Ltd. (formerly Times and its subsidiaries)

100.0 % 2007.03.15 Hypermarkets

LHSC Limited 65.0 % 2010.06.04 Holding Company

Lucky Pai Limited 63.2 % 2006.06.09 Retail

Liaoning Lotte Mart Co., Ltd. 100.0 % 2008.05.22 Hypermarkets

Lotte Cinema Vietnam Co., Ltd. 90.0 % 2008.05.02 Theatre

Lotte Mart Global Sourcing Center Co., Limited 100.0 % 2008.05.29 Retail

Lotte Business Management (tianjin) Co.,Ltd. 100.0 % 2009.04.29 Retail

Lotte Hotel & Retail Vietnam PTE.Ltd. 80.0 % 2011.01.26 Holding Company

Lotte Shopping India Pvt.,Ltd 100.0 % 2008.01.04 Retail

Overseas: 16 Affiliates

Consolidated Affiliates

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(Unit: billion KRW)

Income Statement (Consolidated K-IFRS)

Q1 FY’10 Q1 FY’11 YoY

Sales Revenue 4,471 5,690 +27.3%

Gross Profit 1,334 (29.8%) 1,702 (29.9%) +27.6%

SG&A 931 (20.8%) 1,222 (21.5%) +31.2%

Operating Profit 379 (8.5%) 448 (7.9%) +18.1%

EBITDA 465 (10.5%) 560 (9.9%) +20.4%

Profit before tax 393

(8.8%) 441 (7.7%) +12.2%

Net Profit 299 (6.7%) 342 (6.0%) +14.3%

Net Income of Controlling Company

285 324 +13.7%

Net income of minority interest equity

14 18 +28.6%

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1Q ’10 4Q ’10 1Q ’11 YoY

Total assets 24,906 29,095 29,526 +18.6%

Cash & Cash Equivalent 1,757 1,242 1,309 -25.6%

Inventories 1,374 1,670 1,667 +21.4%

Liabilities 12,174 15,451 15,541 +27.7%

Borrowings & Bonds 6,203 8,395 8,630 +39.1%

Equity 12,731 13,644 13,985 +9.8%

Share Capital 145 145 145 -

Balance Sheet (Consolidated K-IFRS)

(Unit: billion KRW)

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2007 2008 2009 2010 2011(E)

Domestic Year End Year End Year End Year End Opening Year End

Total Total Total Total Q1 Q2(E) Q3(E) Q4(E) Total(E)

Department Store full-line store 21 22 23 23 1 24

franchise store 3 3 3 6 6

young plaza 3 3 3 3 3

outlet mall - 2 3 4 1 1 6

Hypermarket 56 63 69 90 1 1 7 99

2007 2008 2009 2010 2011(E)

Overseas Year End Year End Year End Year End Opening Year End

Total Total Total Total Q1 Q2(E) Q3(E) Q4(E) Total(E)

Department Store Russia 1 1 1 1 1

China - 1 1 1 1 2

Hypermarket China *8 8 ***79 82 +1/-2 2 4 8 95

Vietnam - 1 1 2 1 3

Indonesia - **19 19 22 1 1 2 26

* acquired 8 CTA Makro stores in Beijing and Tianjin.

** acquired 19 Makro stores in Indonesia.

*** acquired 68 Times stores in China.(including 11 supermarket)

Store Network Store Network

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No. of stores Revenue

Growth

Overall SSS

China 81 540 +10.3% +3.0%

Indonesia 22 200 +14.5% +5.6%

Vietnam 2 28 +106.9% +31.5%

Total 105 768 +13.3% +4.3%

Note: Overseas Revenue Contribution Calculated Based on Internally Managed Revenue Data inc. VAT

Fixed Exchange Rate: 1RMB = ￦200, 100RP= ￦ 12.0, 100VND= ￦ 7.94

(Unit : billion KRW)

Lotte Marts in Overseas (as of Q1FY’11)

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