----

|                                                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                           |  |  |  |  |  |  |  |
|                                                                                                                                                                                      | [Unaudited] |   |   |
| ASSETS                                                                                                                                                                                    | 2012 |   | 2011 |
| CURRENT ASSETS:                                                                                                                                                                           | (In thousands) |
|    Cash and cash equivalents (Notes 8 and 13)                                                                                                                              | ₩ | 10,833,298 |  |   | ₩ | 10,187,008 |  |
|    Short-term financial instruments                                                                                                                                        | 69,000,000 |  |   | 40,000,000 |  |
|    Trade accounts receivable, net of allowance for doubtful accounts of₩243,980 thousand [Unaudited] for 2012 and ₩192,047 thousand for 2011 (Notes 13 and 14) | 24,153,993 |  |   | 19,012,616 |  |
|    Inventories (Notes 3 and 8)                                                                                                                                             | 39,038,579 |  |   | 34,568,962 |  |
|    Securities (Notes 5 and 8)                                                                                                                                              | 4,200 |  |   | 4,500 |  |
|    Deferred income tax assets  (Note 18)                                                                                                                                   | 110,191 |  |   | — |  |
|    Other current assets  (Notes 4 and 14)                                                                                                                                  | 18,429,786 |  |   | 7,147,794 |  |
|                                                                                                                                                                                      | 161,570,047 |  |   | 110,920,880 |  |
| NON CURRENT ASSETS:                                                                                                                                                                       |   |   |   |
|    Securities under the equity method  (Note 6)                                                                                                                            | 677,340 |  |   | 677,340 |  |
|    Securities (Notes 5 and 8)                                                                                                                                              | 1,653,545 |  |   | 1,354,910 |  |
|    Other investments                                                                                                                                                       | 760,275 |  |   | 138,855 |  |
|    Tangible assets, net (Notes 7 and 8)                                                                                                                                    | 61,218,671 |  |   | 65,962,903 |  |
|    Intangible assets (Note 9)                                                                                                                                              | 6,849,722 |  |   | 8,578,563 |  |
|    Guarantee deposits paid (Note 10)                                                                                                                                       | 123,978,573 |  |   | 123,590,176 |  |
|    Membership certificates                                                                                                                                                 | 2,181,726 |  |   | 2,307,877 |  |
|    Deferred income tax assets (Note 18)                                                                                                                                    | 3,850,652 |  |   | 1,283,463 |  |
|                                                                                                                                                                                      | 201,170,504 |  |   | 203,894,087 |  |
| Total Assets                                                                                                                                                                              | ₩ | 362,740,551 |  |   | ₩ | 314,814,967 |  |
|                                                                                                                                                                                      |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                      |   |   |   |
|    Trade accounts payable (Note 14)                                                                                                                                        | ₩ | 14,621,188 |  |   | ₩ | 16,444,547 |  |
|    Accounts payable-other (Note 14)                                                                                                                                        | 11,755,304 |  |   | 13,588,829 |  |
|    Income tax payable (Note 18)                                                                                                                                            | 9,977,312 |  |   | 3,532,886 |  |
|    Advances from customers (Note 13)                                                                                                                                       | 1,965,808 |  |   | 2,728,591 |  |
|    Guarantee deposits received                                                                                                                                             | 20,968,265 |  |   | 17,685,162 |  |
|    Deferred income tax liabilities (Note 18)                                                                                                                               | — |  |   | 136,978 |  |
|    Other current liabilities (Notes 11,13, and 14)                                                                                                                         | 10,916,816 |  |   | 6,864,380 |  |
|                                                                                                                                                                                      | 70,204,693 |  |   | 60,981,373 |  |
| NON CURRENT LIABILITIES:                                                                                                                                                                  |   |   |   |
|    Accrued severance indemnities, net of benefit plan assets of ₩17,572,740 thousand [Unaudited] for 2012 and ₩13,144,957 thousand for 2011 (Note 12)          | 3,633,591 |  |   | 4,250,472 |  |
|    Other Allowance (Note 23)                                                                                                                                               | 13,606,478 |  |   | 2,651,480 |  |
|                                                                                                                                                                                      | 17,240,069 |  |   | 6,901,952 |  |
| Total Liabilities                                                                                                                                                                         | 87,444,762 |  |   | 67,883,325 |  |
| SHAREHOLDERS’ EQUITY:                                                                                                                                                               |   |   |   |
|    Common stock  (Note 15)                                                                                                                                                 | 6,000,000 |  |   | 6,000,000 |  |
|    Accumulated other comprehensive income (Notes 5 and 16)                                                                                                                 | 529,670 |  |   | 300,121 |  |
|    Appropriated retained earnings (Note 15)                                                                                                                                | 24,234,977 |  |   | 24,234,977 |  |
|    Retained earnings before appropriations                                                                                                                                 | 244,531,142 |  |   | 216,396,544 |  |
|  Total Shareholders’ Equity                                                                                                                                                    | 275,295,789 |  |   | 246,931,642 |  |
| Total Liabilities and Shareholders’ Equity                                                                                                                                          | ₩ | 362,740,551 |  |   | ₩ | 314,814,967 |  |

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | [Unaudited] |   |   |   |   |
|                                                                  | 2012 |   | 2011 |   | 2010 |
|                                                                  | (In thousands, except per share amounts) |
|                                                                  |   |   |   |
| SALES (Notes 14 and 24)                                               | ₩ | 482,923,197 |  |   | ₩ | 452,359,842 |  |   | ₩ | 426,063,145 |  |
| COST OF SALES (Notes 14 and 21)                                       | 231,357,159 |  |   | 223,625,882 |  |   | 205,865,736 |  |
| GROSS PROFIT                                                          | 251,566,038 |  |   | 228,733,960 |  |   | 220,197,409 |  |
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Notes 21 and 22)        | 207,641,185 |  |   | 195,163,739 |  |   | 181,504,761 |  |
| OPERATING INCOME                                                      | 43,924,853 |  |   | 33,570,221 |  |   | 38,692,648 |  |
| NON OPERATING INCOME (EXPENSES):                                      |   |   |   |   |   |
|    Interest income                                     | 2,766,346 |  |   | 2,150,932 |  |   | 2,112,109 |  |
|    Loss on foreign currency translation, net (Note 13) | (17,032) |  |   | (2,852) |  |   | (17,252) |  |
|    Gain (Loss) on foreign currency transactions, net   | (167,797) |  |   | (35,493) |  |   | 4,310 |  |
|    Commission income                                   | 4,486,343 |  |   | 3,208,904 |  |   | 5,199,869 |  |
|    Gain (Loss) on disposal of tangible assets, net     | (355,284) |  |   | (715,563) |  |   | 17,414 |  |
|    Gain on disposal of intangible assets               | 542,167 |  |   | 755,000 |  |   | 309,350 |  |
|    Donations (Note 17)                                 | (2,486,160) |  |   | (2,426,487) |  |   | (1,983,239) |  |
|    Impairment loss of membership certificates          | (299,547) |  |   | — |  |   | — |  |
|    Miscellaneous, net (Note 17)                        | (279,566) |  |   | (677,804) |  |   | (336,130) |  |
|                                                                  | 4,189,470 |  |   | 2,256,637 |  |   | 5,306,431 |  |
|                                                                  |   |   |   |   |   |
| INCOME BEFORE INCOME TAX                                              | 48,114,323 |  |   | 35,826,858 |  |   | 43,999,079 |  |
|                                                                  |   |   |   |   |   |
| INCOME TAX EXPENSE (Note 18)                                          | 11,147,781 |  |   | 8,494,063 |  |   | 10,586,975 |  |
|                                                                  |   |   |   |   |   |
| NET INCOME                                                            | ₩ | 36,966,542 |  |   | ₩ | 27,332,795 |  |   | ₩ | 33,412,104 |  |
|                                                                  |   |   |   |   |   |
| NET INCOME PER SHARE (Note 19)                                        | ₩ | 61,611 |  |   | ₩ | 45,555 |  |   | ₩ | 55,687 |  |

----

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                       |   |    Korean Won       |
|                                                                       |   | (In thousands) |
|                                                                       |   |    Common Stock     |   | Accumulated other comprehensive income |   |  Retained Earnings |   |    Total             |
| Balance at January 1, 2010                                                 |   | ₩ | 6,000,000 |  |   | ₩ | — |  |   | ₩ | 200,532,622 |  |   | ₩ | 206,532,622 |  |
| Annual dividends                                                           |   |   |   |   |   | (10,614,000 | ) |   | (10,614,000 | ) |
| Balance after appropriations                                               |   |   |   |   |   | 189,918,622 |  |   | 195,918,622 |  |
| Net income                                                                 |   |        |   |   |   | 33,412,104 |  |   | 33,412,104 |  |
| Balance at December 31, 2010                                               |   | ₩ | 6,000,000 |  |   | ₩ | — |  |   | ₩ | 223,330,726 |  |   | ₩ | 229,330,726 |  |
| Balance at January 1, 2011                                                 |   | ₩ | 6,000,000 |  |   | ₩ | — |  |   | ₩ | 223,330,726 |  |   | ₩ | 229,330,726 |  |
| Annual dividends                                                           |   |   |   |   |   | (10,032,000 | ) |   | (10,032,000 | ) |
| Balance after appropriations                                               |   |   |   |   |   | 213,298,726 |  |   | 219,298,726 |  |
| Gain on valuation of available-for-sale securities, net of tax             |   |   |   | 300,121 |  |   | — |  |   | 300,121 |  |
| Net income                                                                 |   |   |   |   |   | 27,332,795 |  |   | 27,332,795 |  |
| Balance at December 31, 2011                                               |   | ₩ | 6,000,000 |  |   | ₩ | 300,121 |  |   | ₩ | 240,631,521 |  |   | ₩ | 246,931,642 |  |
| Balance at January 1, 2012 [Unaudited]                                     |   | ₩ | 6,000,000 |  |   | ₩ | 300,121 |  |   | ₩ | 240,631,521 |  |   | ₩ | 246,931,642 |  |
| Annual dividends [Unaudited]                                               |   |   |   |   |   | (8,202,000 | ) |   | (8,202,000 | ) |
| Balance after appropriations [Unaudited]                                   |   |   |   |   |   | 232,429,521 |  |   | 238,729,642 |  |
| Cumulative effect of a change in accounting principle [Unaudited]          |   |   |   |   |   | (629,944) |  |   | (629,944) |  |
| Gain on valuation of available-for-sale securities, net of tax [Unaudited] |   |   |   | 229,549 |  |   | — |  |   | 229,549 |  |
| Net income [Unaudited]                                                     |   |   |   |   |   | 36,966,542 |  |   | 36,966,542 |  |
| Balance at December 31, 2012 [Unaudited]                                   |   | ₩ | 6,000,000 |  |   | ₩ | 529,670 |  |   | ₩ | 268,766,119 |  |   | ₩ | 275,295,789 |  |

----

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |  |  |  |  |
|                                                                              | [Unaudited] |   |   |   |   |
|                                                                              | 2012 |   | 2011 |   | 2010 |
|                                                                              | (In thousands) |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |   |   |   |   |
| Net income                                                                        | ₩ | 36,966,542 |  |   | ₩ | 27,332,795 |  |   | ₩ | 33,412,104 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |   |   |
| Depreciation                                                                      | 21,380,313 |  |   | 20,215,617 |  |   | 18,899,166 |  |
| Provision for severance indemnities                                               | 4,888,185 |  |   | 5,115,531 |  |   | 6,695,012 |  |
| Amortization of intangible assets                                                 | 3,328,707 |  |   | 3,720,031 |  |   | 3,604,761 |  |
| Provision for doubtful accounts                                                   | 279,041 |  |   | 1,364,490 |  |   | 31,982 |  |
| Loss(Gain) on foreign currency translation                                        | (192) |  |   | 3,415 |  |   | — |  |
| Loss(Gain) on disposal of tangible assets, net                                    | 355,284 |  |   | 715,563 |  |   | (17,414) |  |
| Gain on disposal of intangible assets, net                                        | (542,167) |  |   | (755,000 | ) |   | (309,350) |  |
| Impairment loss of membership certificates                                        | 299,547 |  |   | — |  |   | — |  |
| Payment of severance indemnities                                                  | (1,254,090) |  |   | (3,333,628) |  |   | (4,074,977) |  |
| Transfer-in of severance indemnities from affiliates                              | 176,808 |  |   | 45,973 |  |   | 174,604 |  |
| Change in trade accounts receivable                                               | (5,193,698) |  |   | (2,189,751) |  |   | (463,142) |  |
| Change in accounts receivable-other                                               | (2,289,145) |  |   | (970,223) |  |   | 537,197 |  |
| Change in accrued income                                                          | (142,969) |  |   | (188,753) |  |   | 17,600 |  |
| Change in advanced payments                                                       | (902,854) |  |   | 642,527 |  |   | (1,030,369) |  |
| Change in prepaid expenses                                                        | (24,234) |  |   | (132,630) |  |   | 101,573 |  |
| Change in inventories                                                             | (4,469,617) |  |   | (6,260,845) |  |   | 1,442,542 |  |
| Change in deferred income tax assets                                              | (2,549,549) |  |   | 26,766 |  |   | (215,534) |  |
| Change in trade accounts payable                                                  | (1,822,778) |  |   | 1,132,441 |  |   | 866,869 |  |
| Change in accounts payable-other                                                  | (1,833,526) |  |   | 4,745,816 |  |   | 1,660,450 |  |
| Change in withholdings                                                            | 1,878,693 |  |   | (57,023) |  |   | (752,033) |  |
| Change in accrued expenses                                                        | 2,046,783 |  |   | (43,370) |  |   | (2,982,152) |  |
| Change in income tax payable                                                      | 6,444,426 |  |   | (2,379,638) |  |   | (1,909,418) |  |
| Change in deferred income tax liabilities                                         | (136,978) |  |   | (67,584) |  |   | 1,675 |  |
| Change in advances from customers                                                 | 209,194 |  |   | 652,134 |  |   | 188,042 |  |
| Change in allowance for unused points                                             | 4,313,270 |  |   | 1,223,446 |  |   | (735,036) |  |
| Change in gift certificate discounts                                              | (4,309) |  |   | 7,700 |  |   | (12,156) |  |
| Change in the National Pension Fund                                               | 11,571 |  |   | 3,198 |  |   | 7,208 |  |
| Change in benefit plan assets                                                     | (4,439,355) |  |   | (1,575,894) |  |   | (2,623,783) |  |
| Net cash provided by operating activities                                         | 56,972,903 |  |   | 48,993,104 |  |   | 52,515,421 |  |
|                                                                              |   |   |   |   |   |

----

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |  |  |  |
|                                                 | [Unaudited] |   |   |   |   |
|                                                 | 2012 |   | 2011 |   | 2010 |
|                                                 | (In thousands) |
| CASH FLOWS FROM INVESTING ACTIVITIES:                |   |   |   |   |   |
| Withdrawal of short-term financial instruments       | ₩ | 107,300,000 |  |   | ₩ | 117,500,000 |  |   | ₩ | 157,000,000 |  |
| Proceeds from disposal of securities                 | 4,500 |  |   | 5,600 |  |   | 4,390 |  |
| Disposal of tangible assets                          | 438,653 |  |   | 375,932 |  |   | 327,457 |  |
| Refund of guarantee deposits paid                    | 14,413,718 |  |   | 9,905,072 |  |   | 4,752,250 |  |
| Collection of long-term loans                        | 38,080 |  |   | 45,230 |  |   | 226,922 |  |
| Disposal of lease premium                            | 895,000 |  |   | 1,010,000 |  |   | 352,600 |  |
| Disposal of membership certificates                  | — |  |   | 70,150 |  |   | — |  |
| Acquisition of short-term financial instruments      | (136,300,000) |  |   | (117,000,000) |  |   | (162,500,000) |  |
| Purchase of securities under the equity method       | — |  |   | — |  |   | (677,340) |  |
| Purchase of securities                               | — |  |   | (900,486) |  |   | — |  |
| Payment of guarantee deposits                        | (16,804,404) |  |   | (21,898,107) |  |   | (19,845,301) |  |
| Increase of short-term loans                         | (1,352,649) |  |   | — |  |   | — |  |
| Increase of long-term loans                          | (484,500) |  |   | — |  |   | — |  |
| Acquisition of tangible assets                       | (17,430,019) |  |   | (25,069,389) |  |   | (17,149,920) |  |
| Purchase of membership certificates                  | (173,396) |  |   | (100,500) |  |   | (589,546) |  |
| Purchase of trademark                                | (169,699) |  |   | — |  |   | — |  |
| Payment of lease premium                             | (1,783,000) |  |   | (3,464,718) |  |   | (1,955,074) |  |
| Net cash used in investing activities                | (51,407,716) |  |   | (39,521,216) |  |   | (40,053,562) |  |
|                                                 |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                |   |   |   |   |   |
| Refund of guarantee deposits received                | 5,576,513 |  |   | 23,496,253 |  |   | 5,074,855 |  |
| Dividends paid                                       | (8,202,000) |  |   | (10,032,000) |  |   | (10,614,000) |  |
| Payment of guarantee deposits received               | (2,293,410) |  |   | (23,184,367) |  |   | (2,890,568) |  |
| Net cash used in financing activities                | (4,918,897) |  |   | (9,720,114) |  |   | (8,429,713) |  |
|                                                 |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 646,290 |  |   | (248,226) |  |   | 4,032,146 |  |
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR         | 10,187,008 |  |   | 10,435,234 |  |   | 6,403,088 |  |
| CASH AND CASH EQUIVALENTS, END OF YEAR (Note 25)     | ₩ | 10,833,298 |  |   | ₩ | 10,187,008 |  |   | ₩ | 10,435,234 |  |

----

|    |                                             |
|----|---------------------------------------------|
| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: |

----

----

|                         |
|-------------------------|
|                         |  |  |
| Assets                  |   | Useful lives (Years) |
| Buildings               |   | 30 |
| Structures              |   | 15 |
| Machinery and equipment |   | 8 |
| Vehicles                |   | 4 |
| Others                  |   | 4 |

----

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |
|                 | Korean Won (In thousands) |
|                 | 2012 |   | 2011 |
|                 | [Unaudited] |   |   |
| Merchandise          | ₩ | 6,430,988 |  |   | ₩ | 6,874,214 |  |
| Finished goods       | 6,459,038 |  |   | 4,412,773 |  |
| Semi-finished goods  | 224,536 |  |   | 224,481 |  |
| Raw materials        | 19,535,182 |  |   | 16,712,431 |  |
| Materials in transit | 6,388,835 |  |   | 6,345,063 |  |
| Total                | ₩ | 39,038,579 |  |   | ₩ | 34,568,962 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
|                            |       Korean Won (In thousands) |
|                            | 2012 |   | 2011 |
|                            | [Unaudited] |   |   |
| Accounts receivable–other | ₩ | 13,465,545 |  |   | ₩ | 4,431,259 |  |
| Accrued income                  | 830,565 |  |   | 687,597 |  |
| Advanced payments               | 2,352,560 |  |   | 1,624,706 |  |
| Prepaid expenses                | 428,467 |  |   | 404,232 |  |
| Short-term loans                | 1,352,649 |  |   | — |  |
| Total                           | ₩ | 18,429,786 |  |   | ₩ | 7,147,794 |  |

|    |             |
|----|-------------|
| 5. | SECURITIES: |

|     |                                                                                        |
|-----|----------------------------------------------------------------------------------------|
| (1) |  Securities as of December 31, 2012 [Unaudited] and 2011 consist of the following: |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |
|                          |       Korean Won (In thousands) |
|                          | 2012 |   | 2011 |
|                          | [Unaudited] |   |   |
| Available-for-sale securities |   |   |   |
| Dunkin' Brands Group, Inc     | ₩ | 1,599,260 |  |   | ₩ | 1,296,425 |  |
| Held-to-maturity securities   |   |   |   |
| Government & public bonds | 58,485 |  |   | 62,985 |  |
| Total                         | ₩ | 1,657,745 |  |   | ₩ | 1,359,410 |  |

|     |                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------|
| (2) | Details of available-for-sale securities as of December 31, 2012 [Unaudited] and 2011 consist of the following: |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   |   |   |   |   | Korean Won (In thousands) |
|                             |   | Number of shares |   | Ownership |   | Acquisitioncost |   | Fair value |   | Book value |
| Dunkin’ Brands Group, Inc. |   | 45,000 |   | 0.2% |   | ₩ | 900,486 |  |   | ₩ | 1,599,260 |  |   | ₩ | 1,599,260 |  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   |   |   |   |   | Korean Won (In thousands) |
|                             |   | Number of shares |   | Ownership |   | Acquisitioncost |   | Fair value |   | Book value |
| Dunkin’ Brands Group, Inc. |   | 45,000 |   | 0.2% |   | ₩ | 900,486 |  |   | ₩ | 1,296,425 |  |   | ₩ | 1,296,425 |  |

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |
|                       |   |   |   |   |   | Korean Won (In thousands) |
|                       |   | Number of shares |   | Ownership |   | Acquisitioncost |   | Book value |
| Nexgen Food Research (NFR) |   | 6,000 |   | 100% |   | ₩ | 677,340 |  |   | ₩ | 677,340 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |
|                    | Korean Won (In thousands) |
|                    | 2012 |   | 2011 |
|                    | [Unaudited] |   |   |
| Land                    | ₩ | 11,732,349 |  |   | ₩ | 11,103,689 |  |
| Buildings               | 20,916,402 |  |   | 21,867,337 |  |
| Structures              | 885,729 |  |   | 996,666 |  |
| Machinery and equipment | 6,910,695 |  |   | 8,409,626 |  |
| Vehicles                | 24,827 |  |   | 45,373 |  |
| Other                   | 20,748,669 |  |   | 23,540,212 |  |
| Total                   | ₩ | 61,218,671 |  |   | ₩ | 65,962,903 |  |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | Korean Won (In thousands) |
|                    | 2012 [Unaudited] |
|                    | January 1, 2012 |   | Acquisition |   | Disposal |   | Depreciation |   | December 31, 2012 |
| Land                    | ₩ | 11,103,689 |  |   | ₩ | 628,660 |  |   | ₩ | — |  |   | ₩ | — |  |   | ₩ | 11,732,349 |  |
| Buildings               | 21,867,337 |  |   | 27,812 |  |   | — |  |   | 978,747 |  |   | 20,916,402 |  |
| Structures              | 996,666 |  |   | 5,500 |  |   | — |  |   | 116,437 |  |   | 885,729 |  |
| Machinery and equipment | 8,409,626 |  |   | 1,376,600 |  |   | — |  |   | 2,875,531 |  |   | 6,910,695 |  |
| Vehicles                | 45,373 |  |   | 6,400 |  |   | 279 |  |   | 26,667 |  |   | 24,827 |  |
| Others                  | 23,540,212 |  |   | 15,385,047 |  |   | 793,659 |  |   | 17,382,931 |  |   | 20,748,669 |  |
| Total                   | ₩ | 65,962,903 |  |   | ₩ | 17,430,019 |  |   | ₩ | 793,938 |  |   | ₩ | 21,380,313 |  |   | ₩ | 61,218,671 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | Korean Won (In thousands) |
|                    | 2011 |
|                    | January 1, 2011 |   |    Acquisition |   |       Disposal |   |       Depreciation |   | December 31, 2011 |
| Land                    | ₩ | 11,103,689 |  |   | ₩ | — |  |   | ₩ | — |  |   | ₩ | — |  |   | ₩ | 11,103,689 |  |
| Buildings               | 21,571,820 |  |   | 1,576,412 |  |   | 327,480 |  |   | 953,415 |  |   | 21,867,337 |  |
| Structures              | 752,500 |  |   | 357,064 |  |   | — |  |   | 112,898 |  |   | 996,666 |  |
| Machinery and equipment | 8,080,418 |  |   | 3,415,485 |  |   | 1 |  |   | 3,086,276 |  |   | 8,409,626 |  |
| Vehicles                | 113,898 |  |   | — |  |   | 8,330 |  |   | 60,195 |  |   | 45,373 |  |
| Others                  | 20,578,300 |  |   | 19,720,428 |  |   | 755,683 |  |   | 16,002,833 |  |   | 23,540,212 |  |
| Total                   | ₩ | 62,200,625 |  |   | ₩ | 25,069,389 |  |   | ₩ | 1,091,494 |  |   | ₩ | 20,215,617 |  |   | ₩ | 65,962,903 |  |

|    |                 |
|----|-----------------|
| 8. | INSURED ASSETS: |

|    |                    |
|----|--------------------|
| 9. | INTANGIBLE ASSETS: |

|                |
|----------------|
|                |  |  |  |  |  |  |  |
|           |       Korean Won (In thousands) |
|           | 2012 |   | 2011 |
|           | [Unaudited] |   |   |
| Lease premiums | ₩ | 6,696,993 |  |   | ₩ | 8,578,563 |  |
| Trademark      | 152,729 |  |   |          - |  |
| Total          | ₩ | 6,849,722 |  |   | ₩ | 8,578,563 |  |

----

|                |
|----------------|
|                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|           | Korean Won (In thousands) |
|           | 2012 [Unaudited] |
|           | January 1, 2012 |   |    Acquisition |   |    Disposal |   |       Amortization |   | December 31,   2012 |
| Lease premiums | ₩ | 8,578,563 |  |   | ₩ | 1,783,000 |  |   | ₩ | 352,833 |  |   | ₩ | 3,311,737 |  |   | ₩ | 6,696,993 |  |
| Trademark      | — |  |   | 169,699 |  |   | — |  |   | 16,970 |  |   | 152,729 |  |
| Total          | ₩ | 8,578,563 |  |   | ₩ | 1,952,699 |  |   | ₩ | 352,833 |  |   | ₩ | 3,328,707 |  |   | ₩ | 6,849,722 |  |

|                |
|----------------|
|                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|           | Korean Won (In thousands) |
|           | 2011 |
|           | January 1, 2011 |   | Acquisition |   | Disposal |   |       Amortization |   |    Reclassification |   | December 31, 2011 |
| Lease premiums | ₩ | 9,338,876 |  |   | ₩ | 3,464,718 |  |   | ₩ | 255,000 |  |   | ₩ | 3,720,031 |  |   | ₩ | 250,000 |  |   | ₩ | 8,578,563 |  |

|     |                     |
|-----|---------------------|
| 10. | GUARANTEE DEPOSITS: |

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |
|            |       Korean Won (In thousands) |
|            | 2012 |   | 2011 |
|            | [Unaudited] |   |   |
| Rental deposits | ₩ | 123,957,022 |  |   | ₩ | 123,569,697 |  |
| Other           | 21,551 |  |   | 20,479 |  |
| Total           | ₩ | 123,978,573 |  |   | ₩ | 123,590,176 |  |

|     |                            |
|-----|----------------------------|
| 11. | OTHER CURRENT LIABILITIES: |

|                  |
|------------------|
|                  |  |  |  |  |  |  |  |
|             |       Korean Won (In thousands) |
|             | 2012 |   | 2011 |
|             | [Unaudited] |   |   |
| Withholdings     | ₩ | 5,100,940 |  |   | ₩ | 3,222,248 |  |
| Accrued expenses | 5,815,876 |  |   | 3,642,132 |  |
|             | ₩ | 10,916,816 |  |   | ₩ | 6,864,380 |  |

----

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |
|                                                      |       Korean Won (In thousands) |
|                                                      | 2012 |   | 2011 |
|                                                      | [Unaudited] |   |   |
| Beginning accrued severance indemnities                   | ₩ | 17,395,428 |  |   | ₩ | 15,567,553 |  |
| Provision for severance indemnities for the period        | 4,888,185 |  |   | 5,115,531 |  |
| Transferred-in from affiliates                            | 176,808 |  |   | 45,973 |  |
| Severance payment                                         | (1,254,090 | ) |   | (3,333,629 | ) |
| Ending accrued severance indemnities                      | ₩ | 21,206,331 |  |   | ₩ | 17,395,428 |  |
|                                                      |   |   |   |
| Deposits in National Pension Fund                         | ₩ | (12,041 | ) |   | ₩ | (23,612 | ) |
| Deposits in financial institutions                        | (17,560,699 | ) |   | (13,121,344 | ) |
| Total benefit plan assets                                 | ₩ | (17,572,740 | ) |   | ₩ | (13,144,956 | ) |
|                                                      |   |   |   |
| Accrued severance indemnities, net of benefit plan assets | ₩ | 3,633,591 |  |   | ₩ | 4,250,472 |  |

|     |                                             |
|-----|---------------------------------------------|
| 13. | ASSETS AND LIABILITIES IN FOREIGN CURRENCY: |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      |   |    Korean Won (In thousands) and US Dollars |
|                      |   | 2012 [Unaudited] |   | 2011 |   | 2010 |
|                      |   | Foreign Currency |   | Korean Won Equivalent |   | Foreign Currency |   | Korean Won Equivalent |   | Foreign  Currency |   | Korean Won Equivalent |
| Assets:                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | USD | 508,553 |  |   | ₩ | 544,711 |  |   | USD | 40,543 |  |   | ₩ | 46,758 |  |   | USD | 715,149 |  |   | ₩ | 814,483 |  |
| Trade accounts receivable |   | USD | 65,852 |  |   | ₩ | 70,534 |  |   | USD |  |  |   | ₩ | — |  |   | USD |  |  |   | ₩ | — |  |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:              |   |   |   |   |   |   |   |   |   |   |   |   |
| Accrued expense           |   | USD | 16,783 |  |   | ₩ | 17,977 |  |   | USD | 60,274 |  |   | ₩ | 69,514 |  |   | USD |  |  |   | ₩ | — |  |
| Advance from customers    |   | USD | 88,112 |  |   | ₩ | 94,377 |  |   | USD | 12,656 |  |   | ₩ | 14,597 |  |   | USD |  |  |   | ₩ | — |  |

----

|     |                                    |
|-----|------------------------------------|
| 14. | TRANSACTIONS WITH RELATED PARTIES: |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Korean Won (In thousands) |
|                             | 2012 [Unaudited]     |   | 2011  |   | 2010 |
|                             | Revenues and others |   | Purchases and others      |   | Revenues and others |   | Purchases and others    |   | Revenues and others |   | Purchases and others    |
| Shany Co., Ltd.                  | ₩ | 29,864 |  |   | ₩ | 48,000 |  |   | ₩ | 29,156 |  |   | ₩ | 1,320,572 |  |   | ₩ | 1,083,848 |  |   | ₩ | 11,853,327 |  |
| Honam Shany Co., Ltd.            | — |  |   | 136,080 |  |   | — |  |   | 116,580 |  |   |       - |  |   | 79,844 |  |
| Paris Croissant Co., Ltd.        | 283,559 |  |   | 7,970,439 |  |   | 343,449 |  |   | 8,398,987 |  |   | 322,424 |  |   | 6,969,578 |  |
| Samlip General Food Co., Ltd.    | 1,303,611 |  |   | 10,522,072 |  |   | 2,548,977 |  |   | 6,938,463 |  |   | 1,250,728 |  |   | 3,493,164 |  |
| SPC Co., Ltd.                    | 2,095,302 |  |   | 8,823,719 |  |   | 2,083,113 |  |   | 5,739,561 |  |   | 2,050,502 |  |   | 4,409,849 |  |
| SPC Networks Co., Ltd.           | 2,329,809 |  |   | 3,412,293 |  |   | 1,570,524 |  |   | 3,243,939 |  |   | 2,110,253 |  |   | 948,483 |  |
| Mildawon Co., Ltd.               | — |  |   |       - |  |   | — |  |   | 53,480 |  |   | — |  |   | 309,236 |  |
| SPC CAPITAL Co., Ltd.            | — |  |   | 658,349 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| SUNGIL CHEMICAL Co., Ltd.        | — |  |   | 11,979 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| BNS Co., Ltd                     | — |  |   | 64,612 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Nexgen Food Research             | — |  |   | 441,935 |  |   | — |  |   | 412,457 |  |   | — |  |   | — |  |
| Dunkin’ Brands Group, Inc. | 2,301,353 |  |   | 4,227,700 |  |   | 2,639,430 |  |   | 3,755,019 |  |   | 1,191,083 |  |   | 3,448,705 |  |
| Paris Baguette Bon Doux, Inc.    | — |  |   | 33,804,605 |  |   | — |  |   | 37,525,091 |  |   | — |  |   | 23,482,273 |  |
| SPC Euro                         | — |  |   | 8,955,858 |  |   | — |  |   | 7,000,897 |  |   | — |  |   | 3,048,417 |  |
| SPC Japan                        | — |  |   | 621,053 |  |   | — |  |   | 629,860 |  |   | — |  |   | 5,172,213 |  |
|                             | ₩ | 8,343,498 |  |   | ₩ | 79,698,694 |  |   | ₩ | 9,214,649 |  |   | ₩ | 75,134,906 |  |   | ₩ | 8,008,838 |  |   | ₩ | 63,215,089 |  |

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |
|                             | Korean Won (In thousands) |
|                             | 2012 |   | 2011 |
|                             | [Unaudited] |   |   |
| Receivables(*1):                 |   |   |   |
| Shany Co., Ltd.                  | ₩ | 9,393 |  |   | ₩ | 20,350 |  |
| Paris Croissant Co., Ltd.        | 5,193,430 |  |   | 38,847 |  |
| Samlip General Food Co., Ltd.    | 338,355 |  |   | 208,959 |  |
| SPC Co., Ltd.                    | 169,794 |  |   | 147,500 |  |
| SPC Networks Co., Ltd.           | 2,354,888 |  |   | 365,230 |  |
| Dunkin' Brands Group, Inc.       | 684,625 |  |   | 458,905 |  |
|                             | ₩ | 8,750,485 |  |   | ₩ | 1,239,791 |  |
|                             |   |   |   |
| Allowance for doubtful accounts  | 87,505 |  |   | 12,398 |  |
|                             |   |   |   |
| Payables (*2):                   |   |   |   |
| Honam Shany Co., Ltd.            | ₩ | 12,643 |  |   | ₩ | 12,181 |  |
| Paris Croissant Co., Ltd.        | 554,769 |  |   | 472,507 |  |
| Samlip General Food Co., Ltd.    | 2,686,749 |  |   | 917,851 |  |
| SPC Co., Ltd.                    | 978,060 |  |   | 476,318 |  |
| SPC Networks Co., Ltd.           | 324,405 |  |   | 731,846 |  |
| SUNGIL CHEMICAL Co., Ltd         | 1,756 |  |   |       -  |  |
| BNS Co., Ltd                     | 6,115 |  |   |       -  |  |
| Dunkin’ Brands Group, Inc. | 1,318,703 |  |   | 1,222,819 |  |
|                             | ₩ | 5,883,200 |  |   | ₩ | 3,833,522 |  |

|     |                             |
|-----|-----------------------------|
| 15. | SHAREHOLDERS’ EQUITY: |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |
|                                      |       Korean Won (In thousands) |
|                                      | 2012 |   | 2011 |
|                                      | [Unaudited] |   |   |
| Legal reserve (*1)                        | ₩ | 3,000,000 |  |   | ₩ | 3,000,000 |  |
| Reserve for business rationalization (*2) | 3,493,977 |  |   | 3,493,977 |  |
| Reserve for business development (*3)     | 17,741,000 |  |   | 17,741,000 |  |
|                                      | ₩ | 24,234,977 |  |   | ₩ | 24,234,977 |  |

----

|                                                                                |
|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |  |  |  |  |
|                                                                           | 2012 |   | 2011 |   |             2010 |
|                                                                           | [Unaudited] |   |   |   |   |
|                                                                           | (In thousands) |
| RETAINED EARNINGS BEFORE APPROPRIATIONS:                                       |   |   |   |   |   |
| Unappropriated retained earnings brought forward from prior year               | ₩ | 208,194,544 |  |   | ₩ | 189,063,749 |  |   | ₩ | 165,683,645 |  |
| Cumulative effect of a change in accounting standards (KAS – NPE No. 21) | (629,944) |  |   | — |  |   | — |  |
|  Net income                                                               | 36,966,542 |  |   | 27,332,795 |  |   | 33,412,104 |  |
|                                                                           | 244,531,142 |  |   | 216,396,544 |  |   | 199,095,749 |  |
| APPROPRIATIONS:                                                                |   |   |   |   |   |
|    Dividends calculated (Note 20)                               |    11,094,000 (*1) |  |   | 8,202,000 |  |   | 10,032,000 |  |
|                                                                           |   |   |   |   |   |
| UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEAR      | ₩ | 233,437,142 |  |   | ₩ | 208,194,544 |  |   | ₩ | 189,063,749 |  |

|     |                                     |
|-----|-------------------------------------|
| 16. | STATEMENTS OF COMPREHENSIVE INCOME: |

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                                         | 2012 |   | 2011 |   |             2010 |
|                                                                         | [Unaudited] |   |   |   |   |
|                                                                         | (In thousands) |
| Net income                                                                   | ₩ | 36,966,542 |  |   | ₩ | 27,332,795 |  |   | ₩ | 33,412,104 |  |
| Cumulative effect of a change    in accounting principle | (629,944 | ) |   | — |  |   | — |  |
| Other comprehensive income:                                                  |   |   |   |   |   |
|    Gain on valuation of AFS securities                        | 302,835 |  |   | 395,939 |  |   | — |  |
|    Tax effects of gain on valuation of AFS securities         | (73,286 | ) |   | (95,818 | ) |   | — |  |
|                                                                         | 229,549 |  |   | 300,121 |  |   | — |  |
| Comprehensive income                                                         | ₩ | 36,566,147 |  |   | ₩ | 27,632,916 |  |   | ₩ | 33,412,104 |  |

----

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |
|                  | Korean Won (In thousands) |
|                  | 2012 |   | 2011 |   | 2010 |
|                  | [Unaudited] |   |   |   |   |
| Miscellaneous income  | ₩ | 1,386,843 |  |   | ₩ | 1,034,374 |  |   | ₩ | 864,534 |  |
| Miscellaneous expense | (1,666,409 | ) |   | (1,712,178 | ) |   | (1,200,664 | ) |
| Miscellaneous, net    | ₩ | (279,566 | ) |   | ₩ | (677,804 | ) |   | ₩ | (336,130 | ) |

|                                                                                              |
|----------------------------------------------------------------------------------------------|
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                         | Korean Won (In thousands)   |
|                                                                                         | 2012 |   | 2011 |   | 2010 |
|                                                                                         | [Unaudited] |   |   |   |   |
| Income tax currently payable                                                                 | ₩ | 13,834,308 |  |   | ₩ | 8,534,882 |  |   | ₩ | 10,800,834 |  |
| Changes in deferred income tax assets(liabilities), net due to temporary differences:        |   |   |   |   |   |
| End of year                                                                                  | 3,960,843 |  |   | 1,146,485 |  |   | 1,201,484 |  |
| Beginning of year                                                                            | 1,146,486 |  |   | 1,201,484 |  |   | 987,625 |  |
|                                                                                         | (2,814,357 | ) |   | 54,999 |  |   | (213,859 | ) |
| Tax effect                                                                                   | 11,019,951 |  |   | 8,589,881 |  |   | 10,586,975 |  |
| Changes in deferred income tax assets, net reflected directly in shareholders’ equity: |   |   |   |   |   |
| End of year                                                                                  | 32,012 |  |   | (95,818) |  |   | — |  |
| Beginning of year                                                                            | (95,818 | ) |   | — |  |   | — |  |
|                                                                                         | 127,830 |  |   | (95,818 | ) |   | — |  |
| Income tax expense                                                                           | ₩ | 11,147,781 |  |   | ₩ | 8,494,063 |  |   | ₩ | 10,586,975 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |
|                                            | Korean Won (In thousands)  |
|                                  | 2012 |   | 2011 |   | 2010 |
|                                            | [Unaudited] |   |   |   |   |
| Income before income tax                        | ₩ | 48,114,323 |  |   | ₩ | 35,826,858 |  |   | ₩ | 43,999,079 |  |
| Income tax payable by statutory income tax rate | 11,181,666 |  |   | 8,643,700 |  |   | 10,623,577 |  |
| Tax reconciliations:                            |   |   |   |   |   |
| Non-deductible expense                          | 56,384 |  |   | 75,203 |  |   | 55,479 |  |
| Special tax                                     | 23,643 |  |   | 20,936 |  |   | 9,294 |  |
| Tax credit (a)                                  | (120,215 | ) |   | (132,626 | ) |   | (152,850 | ) |
| Others (b)                                      | 6,303 |  |   | (113,150 | ) |   | 51,475 |  |
| Income tax expense                              | ₩ | 11,147,781 |  |   | ₩ | 8,494,063 |  |   | ₩ | 10,586,975 |  |
| Effective tax rate                              | 23.17 | % |   | 23.71 | % |   | 24.06 | % |

----

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    | Korean Won (In thousands) |
|                                    |    2012 [Unaudited] |
|    Descriptions          | Beginning Balance |   | Decrease |   |        Increase |   | Ending   Balance |
|                                    |   |   |   |   |   |   |   |
| Temporary differences to be deducted :  |   |   |   |   |   |   |   |
| Accrued severance indemnities           | ₩ | 15,625,034 |  |   | ₩ | 622,325 |  |   | ₩ | 2,754,711 |  |   | ₩ | 17,757,420 |  |
| Foreign currency translation            | 2,852 |  |   | 2,852 |  |   | 17,032 |  |   | 17,032 |  |
| Amortization of lease premium           | 383,765 |  |   | 199,362 |  |   | 75,719 |  |   | 260,122 |  |
| Allowance for doubtful accounts         | 118,721 |  |   | 118,721 |  |   | 23,689 |  |   | 23,689 |  |
| Accumulated depreciation - Structures   | 3,551,929 |  |   | 871,449 |  |   | 759,738 |  |   | 3,440,218 |  |
| Accumulated depreciation                | 64,906 |  |   | 210 |  |   | — |  |   | 64,696 |  |
| Accounts receivable–other         | — |  |   | — |  |   | 98,501 |  |   | 98,501 |  |
| Allowance for unused points             | — |  |   | — |  |   | 13,371,479 |  |   | 13,371,479 |  |
| Compensated absences                    | — |  |   | — |  |   | 1,146,677 |  |   | 1,146,677 |  |
| Total                                   | 19,747,207 |  |   | 1,814,919 |  |   | 18,247,546 |  |   | 36,179,834 |  |
| Tax rate                                | 24.2 | % |   |        |   |        |   | 24.2 | % |
| Deferred income tax assets              | 4,778,823 |  |   |   |   |   |   | 8,755,520 |  |
|                                    |   |   |   |   |   |   |   |
| Temporary differences to be added:      |   |   |   |   |   |   |   |
| Severance insurance deposits            | (13,121,346 | ) |   | (2,693,167 | ) |   | (7,132,521 | ) |   | (17,560,700 | ) |
| Accrued income                          | (687,596 | ) |   | (687,596 | ) |   | (830,565 | ) |   | (830,565 | ) |
| Lease premium                           | (383,765 | ) |   | (199,362 | ) |   | (75,719 | ) |   | (260,122 | ) |
| Special accumulated depreciation        | (421,018 | ) |   | (8,993 | ) |   | (50,529 | ) |   | (462,554 | ) |
| Gains on valuation of AFS securities    | (395,939 | ) |   | — |  |   | (302,835 | ) |   | (698,774 | ) |
| Total                                   | (15,009,664 | ) |   | (3,589,118 | ) |   | (8,392,169 | ) |   | (19,812,715 | ) |
| Tax rate                                | 24.2 | % |   |        |   |        |   | 24.2 | % |
| Deferred income tax liabilities         | (3,632,338 | ) |   |   |   |   |   | (4,794,677 | ) |
| Deferred income tax assets, net         | ₩ | 1,146,485 |  |   |   |   |   |   | ₩ | 3,960,843 |  |
| Current assets(liabilities)             |   |   |   |   |   |   |   |
| Deferred income tax assets(liabilities) | ₩ | (136,978 | ) |   |   |   |   |   | ₩ | 110,191 |  |
| Non-current assets                      |   |   |   |   |   |   |   |
| Deferred income tax assets              | ₩ | 1,283,463 |  |   |   |   |   |   | ₩ | 3,850,652 |  |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   |    Korean Won (In thousands) |
|                                   | 2011 |
|    Descriptions         | Beginning Balance |   | Decrease |   |   Increase |   | Ending Balance |
|                                   |   |   |   |   |   |   |   |
| Temporary differences to be deducted : |   |   |   |   |   |   |   |
| Accrued severance indemnities          | ₩ | 13,686,988 |  |   | ₩ | 1,407,091 |  |   | ₩ | 3,345,137 |  |   | ₩ | 15,625,034 |  |
| Foreign currency translation           | 17,252 |  |   | 17,252 |  |   | 2,852 |  |   | 2,852 |  |
| Amortization of lease premium          | 425,559 |  |   | 170,455 |  |   | 128,661 |  |   | 383,765 |  |
| Advertising                            | 180,491 |  |   | 180,491 |  |   | — |  |   | — |  |
| Allowance for doubtful accounts        | 32,232 |  |   | 32,232 |  |   | 118,721 |  |   | 118,721 |  |
| Accumulated depreciation - Structures  | 3,984,050 |  |   | 962,961 |  |   | 530,840 |  |   | 3,551,929 |  |
| Accumulated depreciation               | 69,026 |  |   | 4,120 |  |   | — |  |   | 64,906 |  |
| Total                                  | 18,395,598 |  |   | 2,774,602 |  |   | 4,126,211 |  |   | 19,747,207 |  |
| Tax rate (*1)                          | 22.0%, 24.2% |  |   |        |   |        |   | 24.2 | % |
| Deferred income tax assets             | 4,048,120 |  |   |   |   |   |   | 4,778,823 |  |
|                                   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |   |   |   |
| Temporary differences to be added:     |   |   |   |   |   |   |   |
| Severance insurance deposits           | (11,545,452 | ) |   | (612,059 | ) |   | (2,187,953 | ) |   | (13,121,346 | ) |
| Accrued income                         | (498,843 | ) |   | (498,843 | ) |   | (687,596 | ) |   | (687,596 | ) |
| Lease premium                          | (425,559 | ) |   | (170,455 | ) |   | (128,661 | ) |   | (383,765 | ) |
| Special accumulated depreciation       | (419,517 | ) |   | (49,028 | ) |   | (50,529 | ) |   | (421,018 | ) |
| Gain on valuation of AFS securities    | — |  |   | — |  |   | (395,939 | ) |   | (395,939 | ) |
| Total                                  | (12,889,371 | ) |   | (1,330,385 | ) |   | (3,450,678 | ) |   | (15,009,664 | ) |
| Tax rate (*1)                          | 22.0%, 24.2% |  |   |        |  |   |        |  |   | 24.2 | % |
| Deferred income tax liabilities        | (2,846,636 | ) |   |   |   |   |   | (3,632,338 | ) |
| Deferred income tax assets, net        | ₩ | 1,201,484 |  |   |   |   |   |   | ₩ | 1,146,485 |  |
| Current liabilities                    |   |   |   |   |   |   |   |
| Deferred income tax liabilities        | ₩ | (108,745 | ) |   |   |   |   |   | ₩ | (136,978 | ) |
| Non-current assets                     |   |   |   |   |   |   |   |
| Deferred income tax assets             | ₩ | 1,310,229 |  |   |   |   |   |   | ₩ | 1,283,463 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |
|       Description |   |       Korean Won (In thousands) |
|                                            |   | 2012 |   | 2011 |
|                                            |   | [Unaudited] |   |   |
| Before offsetting                               |   |   |   |   |
| Prepaid income tax                              |   | ₩ | 3,856,996 |  |   | ₩ | 5,001,996 |  |
| Income tax payable                              |   | 13,834,308 |  |   | 8,534,882 |  |
| Income tax payable after offsetting             |   | ₩ | 9,977,312 |  |   | ₩ | 3,532,886 |  |

----

|     |                       |
|-----|-----------------------|
| 19. | NET INCOME PER SHARE: |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | 2012 |   | 2011 |   | 2010 |
|                                             | [Unaudited] |   |   |   |   |
| Net income                                       | ₩ | 36,966,542 |  |   | ₩ | 27,332,795 |  |   | ₩ | 33,412,104 |  |
| Weighted average number of outstanding shares(*) | 600,000 |  |   | 600,000 |  |   | 600,000 |  |
| Net income per share                             | ₩ | 61,611 |  |   | ₩ | 45,555 |  |   | ₩ | 55,687 |  |

|     |                                                                                             |
|-----|---------------------------------------------------------------------------------------------|
| (1) | Dividends for the years ended December 31, 2012 [Unaudited],  2011 and 2010 are as follows: |

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |
|               |          Korean Won |
|               |          2012(*) |   | 2011 |   | 2010 |
|               | [Unaudited] |   |   |   |   |
| Dividend per share | ₩ | 18,490 |  |   | ₩ | 13,670 |  |   | ₩ | 16,720 |  |
| Number of shares   | 600,000 |  |   | 600,000 |  |   | 600,000 |  |
| Dividends          | ₩ | 11,094,000,000 |  |   | ₩ | 8,202,000,000 |  |   | ₩ | 10,032,000,000 |  |

|     |                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------|
| (2) | The calculation of dividend to net income ratio for the years ended December 31, 2012 [Unaudited],  2011 and 2010 is as follows: |

|                |
|----------------|
|                |  |  |  |  |  |  |  |  |  |  |  |
|           |          Korean Won (In thousands) |
|           | 2012(*) |   | 2011 |   | 2010 |
|           | [Unaudited] |   |   |   |   |
| Dividend       | ₩ | 11,094,000 |  |   | ₩ | 8,202,000 |  |   | ₩ | 10,032,000 |  |
| Net income     | 36,966,542 |  |   | 27,332,795 |  |   | 33,412,104 |  |
| Dividend ratio | 30.01 | % |   | 30.01 | % |   | 30.03 | % |

----

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                         | Korean Won (In thousands) |
|                                                                                                         | 2012 [Unaudited] |
|                    | SG & A expenses    |   | Manufacturing cost |   | Total expenses |
| Salaries                                                                                                     | ₩ | 45,150,781 |  |   | ₩ | 4,290,358 |  |   | ₩ | 49,441,139 |  |
| Provision for severance indemnities                                                                          | 4,311,779 |  |   | 576,406 |  |   | 4,888,185 |  |
| Employee benefits                                                                                            | 7,553,042 |  |   | 1,060,372 |  |   | 8,613,414 |  |
| Rent                                                                                                         | 27,987,045 |  |   | 2,296,561 |  |   | 30,283,606 |  |
| Depreciation                                                                                                 | 13,808,513 |  |   | 7,571,800 |  |   | 21,380,313 |  |
| Amortization of intangible assets                                                                            | 3,328,707 |  |   | — |  |   | 3,328,707 |  |
| Taxes and dues                                                                                               | 1,801,500 |  |   | 217,306 |  |   | 2,018,806 |  |
| Total                                                                                                        | ₩ | 103,941,367 |  |   | ₩ | 16,012,803 |  |   | ₩ | 119,954,170 |  |

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                         | Korean Won (In thousands) |
|                                                                                                         | 2011 |
|                    | SG & A expenses    |   | Manufacturing cost |   | Total expenses |
| Salaries                                                                                                     | ₩ | 39,681,839 |  |   | ₩ | 4,009,394 |  |   | ₩ | 43,691,233 |  |
| Provision for severance indemnities                                                                          | 4,507,179 |  |   | 608,352 |  |   | 5,115,531 |  |
| Employee benefits                                                                                            | 6,245,433 |  |   | 847,576 |  |   | 7,093,009 |  |
| Rent                                                                                                         | 26,370,435 |  |   | 1,662,524 |  |   | 28,032,959 |  |
| Depreciation                                                                                                 | 13,095,509 |  |   | 7,120,108 |  |   | 20,215,617 |  |
| Amortization of lease premium                                                                                | 3,720,031 |  |   | — |  |   | 3,720,031 |  |
| Taxes and dues                                                                                               | 1,909,169 |  |   | 204,744 |  |   | 2,113,913 |  |
| Total                                                                                                        | ₩ | 95,529,595 |  |   | ₩ | 14,452,698 |  |   | ₩ | 109,982,293 |  |

|                                                                                                              |
|--------------------------------------------------------------------------------------------------------------|
|                                                                                                              |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                         | Korean Won (In thousands) |
|                                                                                                         | 2010 |
|                    | SG & A expenses    |   | Manufacturing cost |   | Total expenses |
| Salaries                                                                                                     | ₩ | 34,303,927 |  |   | ₩ | 3,543,584 |  |   | ₩ | 37,847,511 |  |
| Provision for severance indemnities                                                                          | 6,209,530 |  |   | 485,482 |  |   | 6,695,012 |  |
| Employee benefits                                                                                            | 5,850,725 |  |   | 795,384 |  |   | 6,646,109 |  |
| Rent                                                                                                         | 22,564,643 |  |   | 964,233 |  |   | 23,528,876 |  |
| Depreciation                                                                                                 | 11,659,293 |  |   | 7,239,873 |  |   | 18,899,166 |  |
| Amortization of lease premium                                                                                | 3,604,761 |  |   | — |  |   | 3,604,761 |  |
| Taxes and dues                                                                                               | 1,736,351 |  |   | 194,801 |  |   | 1,931,152 |  |
| Total                                                                                                        | ₩ | 85,929,230 |  |   | ₩ | 13,223,357 |  |   | ₩ | 99,152,587 |  |

----

|     |                                               |
|-----|-----------------------------------------------|
| 22. | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |
|                                     |          Korean Won (In thousands) |
|                                     | 2012 |   | 2011 |   | 2010 |
|                                     | [Unaudited] |   |   |   |   |
| Salaries (*1)                            | ₩ | 45,150,781 |  |   | ₩ | 39,681,839 |  |   | ₩ | 34,303,927 |  |
| Provision for severance indemnities (*1) | 4,311,779 |  |   | 4,507,179 |  |   | 6,209,531 |  |
| Other salaries                           | 3,889,884 |  |   | 3,921,219 |  |   | 3,847,903 |  |
| Employee benefits (*1)                   | 7,553,042 |  |   | 6,245,433 |  |   | 5,850,725 |  |
| Rent (*1)                                | 27,987,045 |  |   | 26,370,435 |  |   | 22,564,643 |  |
| Depreciation (*1)                        | 13,808,513 |  |   | 13,095,509 |  |   | 11,659,293 |  |
| Amortization of intangible assets (*1)   | 3,328,707 |  |   | 3,720,031 |  |   | 3,604,760 |  |
| Taxes and dues (*1)                      | 1,801,500 |  |   | 1,909,169 |  |   | 1,736,351 |  |
| Advertising                              | 28,371,642 |  |   | 27,250,600 |  |   | 30,235,596 |  |
| Research                                 | 582,990 |  |   | 603,372 |  |   | 550,848 |  |
| Provision for doubtful accounts          | 279,041 |  |   | 1,364,490 |  |   | 31,982 |  |
| Commission income                        | 39,368,254 |  |   | 36,506,938 |  |   | 32,672,470 |  |
| Others                                   | 31,208,007 |  |   | 29,987,525 |  |   | 28,236,732 |  |
|                                     | ₩ | 207,641,185 |  |   | ₩ | 195,163,739 |  |   | ₩ | 181,504,761 |  |

----

|     |                             |
|-----|-----------------------------|
| (3) | Allowance for unused points |

|           |
|-----------|
|           |  |  |  |  |  |  |  |  |  |  |  |
|      | Korean Won (In millions) |
|      | 2012 |   | 2011 |   | 2010 |
|      | [Unaudited] |   |   |   |   |
| Ice Cream | ₩ | 265,859 |  |   | ₩ | 235,227 |  |   | ₩ | 209,367 |  |
| Donut     | 217,064 |  |   | 217,133 |  |   | 216,696 |  |
|      | ₩ | 482,923 |  |   | ₩ | 452,360 |  |   | ₩ | 426,063 |  |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                 |          Korean Won (In thousands) |
|                                                                                 | 2012 |   | 2011 |   | 2010 |
|                                                                                 | [Unaudited] |   |   |   |   |
| Transfer to current assets from held-to-maturity securities                          | ₩ | 4,200 |  |   | ₩ | 4,500 |  |   | ₩ | 5,600 |  |
| Transfer to guarantee deposits paid from lease premium                               | — |  |   | 250,000 |  |   | — |  |
| Increase in accounts receivable-others and corresponding allowance for unused points | 4,969,959 |  |   | — |  |   | — |  |
| Transfer to accounts receivable-other from guarantee deposits paid                   | 2,002,290 |  |   | — |  |   | — |  |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    |   | Note reference |   | 2012 |   | 2011 |   | 2010 |
|                                                    |   |   |   | [Unaudited] |   |   |   |   |
| Net income based on Korean GAAP                         |   |   |   | ₩ | 36,966,542 |  |   | ₩ | 27,332,795 |  |   | ₩ | 33,412,104 |  |
| Adjustments:                                            |   |   |   |   |   |   |   |   |
| Retirement and severance benefits                       |   | 26.a |   | (1,046,491) |  |   | 127,471 |  |   | 3,003,808 |  |
| Compensated absences                                    |   | 26.b |   | (790,935 | ) |   | 603,219 |  |   | (116,766) |  |
| FIN 48 effect                                           |   | 26.c |   | (757,077 | ) |   | (10,457) |  |   | (8,766) |  |
| Tax effect of the reconciling items                     |   | 26.e |   | 444,657 |  |   | (277,279) |  |   | (632,580 | ) |
| Net income based on U.S. GAAP                           |   |   |   | ₩ | 34,816,696 |  |   | ₩ | 27,775,749 |  |   | ₩ | 35,657,800 |  |
| Weighted average number of common shares outstanding    |   |   |   | 600,000 |  |   | 600,000 |  |   | 600,000 |  |
| Basic and Diluted Earnings per share based on U.S. GAAP |   |   |   | ₩ | 58,028 |  |   | ₩ | 46,293 |  |   | ₩ | 59,430 |  |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |
|                                            |   |   |   |       Korean Won (In thousands) |
|                                            |   | Note reference |   | 2012 |   | 2011 |
|                                            |   |   |   | [Unaudited] |   |   |
| Shareholders’ equity based on Korean GAAP |   |   |   | ₩ | 275,295,789 |  |   | ₩ | 246,931,642 |  |
| Adjustments:                                    |   |   |   |   |   |   |
| Retirement and severance benefits               |   | 26.a |   | (4,083,251 | ) |   | (2,747,769) |  |
| Compensated absences                            |   | 26.b |   | — |  |   | (40,126) |  |
| FIN 48 effect                                   |   | 26.c |   | (786,399 | ) |   | (29,322) |  |
| Tax effect of the reconciling items             |   | 26.e |   | 988,147 |  |   | 674,671 |  |
| Shareholder's equity based on U.S. GAAP         |   |   |   | ₩ | 271,414,286 |  |   | ₩ | 244,789,096 |  |

----

----

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 |   |            Korean Won (In thousands) |
|                                 |   | 2012 |   | 2011 |   | 2010 |
|                                 |   | [Unaudited] |   |   |   |   |
| Net income based on U.S.GAAP         |   | ₩ | 34,816,696 |  |   | ₩ | 27,775,749 |  |   | ₩ | 35,657,800 |  |
| Net income based on Korean GAAP      |   | 36,966,542 |  |   | 27,332,795 |  |   | 33,412,104 |  |
| Total GAAP adjustments on net income |   | (2,149,846) |  |   | 442,954 |  |   | 2,245,696 |  |
| Adjustments related to tax items:    |   |   |   |   |   |   |
| FIN 48 effect                        |   | 757,077 |  |   | 10,457 |  |   | 8,766 |  |
| Tax effect of the reconciling items  |   | (444,657 | ) |   | 277,279 |  |   | 632,580 |  |
| Taxable GAAP adjustment              |   | (1,837,426) |  |   | 730,690 |  |   | 2,887,042 |  |
| Applicable tax rate(*)               |   | 24.2 | % |   | 24.2 | % |   |    24.2%, 22.0% |  |
| Tax effect of the reconciling items  |   | ₩ | (444,657 | ) |   | ₩ | 277,279 |  |   | ₩ | 632,580 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |  |
|                                                 |   |       Korean Won (In thousands) |
|                                                 |   | 2012 |   | 2011 |
|                                                 |   | [Unaudited] |   |   |
| Shareholders’ equity based on U.S.GAAP         |   | ₩ | 271,414,286 |  |   | ₩ | 244,789,096 |  |
| Shareholders’ equity based on Korean GAAP      |   | 275,295,789 |  |   | 246,931,642 |  |
| Total GAAP adjustments on shareholders’ equity |   | (3,881,503) |  |   | (2,142,546) |  |
| Adjustments related to tax items:                    |   |   |   |   |
| FIN 48 effect                                        |   | 786,399 |  |   | 29,322 |  |
| Tax effect of the reconciling items                  |   | (988,147 | ) |   | (674,671 | ) |
| Taxable GAAP adjustment                              |   | (4,083,251) |  |   | (2,787,895) |  |
| Applicable tax rate                                  |   | 24.2 | % |   | 24.2 | % |
| Tax effect of the reconciling items                  |   | ₩ | (988,147 | ) |   | ₩ | (674,671 | ) |

----