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Company Overview. Business Overview. Brand Introduction. 4P Analysis Awater Production Background Awater Introduction Awater Properties / Effect Distribution Channel Promotion. Company Introduction Company History Organization Chart. Business Environment Business Concept

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Company Overview

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    1. Company Overview Business Overview Brand Introduction 4P Analysis Awater Production Background Awater Introduction Awater Properties / Effect Distribution Channel Promotion Company Introduction Company History Organization Chart Business Environment Business Concept Consumer Market Analysis R&D Center Introduction Factory Introduction Documents R&D Center Introduction Awater Experiment Chemical Test Factory Introduction Production Process

    2. COMPANY | INTRODUCTION • Company Name: Korea Alkaline Water Co., Ltd. • Representative Director: Kyu-Chul Lee • Date of Establishment: January 1, 2003 • Main Office: #400, Moknae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea • Factory: #67-5, Gangcheon-ri, Gancheon-myeon, Yeoju-gun, Gyeonggi-do, Korea • Website : 02 01 • Management Policy • To achieve the best quality based on continuous management and improvement activities • To maximize work efficiency based on development of eco-friendly process • To thoroughly comply with environmental laws and regulations • Management Philosophy • Heath for Mankind / Contribution for Society / Happiness for Household

    3. COMPANY | HISTORY 2003. ~ : Launched a study of natural alkali mineral water known throughout the world 2009. 05 : Established RC-Haji Inc. which is a joint venture corporation in U.S.A 2009. 08 : Acquired Business Permit 2009. 09 : Completion of main factory for Awater production Held business presentation at Seoul Hilton Hotel and subscribed national exclusive distributors 2009. 11 : First shipment for exportation to U.S.A, Taiwan, Trinidad and Tobago 2009. 12 : Contracted with domestic national exclusive distributors (11 ea) and special distributors (6 ea) Opening of business at famous department stores over the nation such as Lotte, Shinsegae, Hyundai, AK Plaza, Galleria 2009 Hit Product Selection by the KyunghyangShinmun 2010. 01 : Selection of official beverage for a wrestling national team by the Korea Sports Council Delivered large-size accommodations such as Chosun Hotel and High 1 Resort 2010. 04 : Delivered about 20 golf courses including Ladena C.C 2010. 05 : Partnership contract with KPGA and selection of official beverage by KPGA Awater CF Advertizing in YTN 2010. 06 : Opening of business at large-scale distributors such as E-Mart and Lotte Mart, and hospitals 2010. 11 : Opening of business in KTX, KT 2011. 03 : Opening of business in expressway rest areas 2011. 06 : Opening of business in Resom Resort 2011. 09 : Opening of business in cancer sanatoria around Gyeonggi province 2011. 10 : Opening of Business in 7-Eleven, Buy the Way

    4. COMPANY | ORGANIZATION CHART Representative Director General Manager Production Headquarters Administration Division Business Headquarters General Affairs Division Planning Marketing Division Production Division Distribution Management Division Accountant Division Quality Control Overseas Business Division Delivery Division Purchase Division

    5. BUSINESS OVERVIEW | ENVIRONMENT 1) Parent Company History • 1959 ~ : Established HankookJungsoo Industries Co., Ltd. • Power Generation and Water Treatment Facilities in Gori, Yeongkwang, Uljin, Singori Nuclear Power Plants • Nuclear Power Treatment and Pure Water Treatment Facilities in Banwol, Gumi, Seongnam, Busan, Suncheon, Gunsan, Yeongwol Combined Thermoelectric Power Plants • Raw Water Pretreatment and Pure Water Treatment Facilities in Honam, Busan, Pyeongtaek,Jeju, Boryeong, Taean, Dangjin, Samcheok, Hadong, Donghae, Yeongheung, Samcheonpo, Yeosu thermoelectric power plants • Seawater Electro-Hypo Chlorination System in Pyeongtaek, Tongyeong, Incheon, Gwangyang LNG Production Stations • Raw Water Pretreatment and Pure Water Treatment Facilities in Libya, Singapore, Iraq, Malaysia, China, Vietnam, Yemen, Oman, Bahrain, Trinidad and Tobago • 2005 ~ : Acquired “Alkaline Water Manufacture Method” Patent • Established Korea Alkaline Water which is a subsidiary company of HaJI • OmanDESALINATION WATER PACKAGE & DEMINERALIZED WATER PACKAGE • USA SEGS KRAMER JUNCTION GNERATION FACILITY • Demineralization Package for Marafiq IWPP, Saudi Arabia • Pure Water Facilities in Qatar, Bahrain • USA Mississippi, Maryland Alkaline Water Plant • Kuwait SabiyaWater/Waste Water Disposal Plant • Riyadh, KSA Water/Waste Water Disposal Plant • UAE Ruwais 4th NGL • KHNP(Korea Hydro & Nuclear Power) Facilities and Water Treatment Facilities • ~2011 : Facilities in 12 Paces of KHNP and Water Treatment Facilities • UAE Water Treatment Facilities by KEPCO (Korea Electric Power Corporation) • Supplement of SK Construction Facilities • Facilities and Water Treatment in 19 Places except GS Construction’sCondensate Polishing Plant

    6. BUSINESS OVERVIEW | CONCEPT Now Singapore Market Year 2011 Domestic Market Year 2009 USA Market Year 2009 USAFDA Approval Year 2009 Future • Launched in national cancer centers and university hospitals • Launched in postnatal care centers Domestic • Launched in Japan market • Launched in China market • Launched in Philippines market • Launched in Indonesia market Overseas

    7. BUSINESS OVERVIEW | CONSUMER MARKET ANALYSIS 1) Market Analysis Others 10% Functional Water 20% Spring Water Mixed Beverage Domestic Water Market Amount: About 450 billion won 30% 60% [As of 2011] 2) Consumer Recognition Thanks to desire of healthy life, the concern and necessity of functional water is increased. As industrial society develops, spring water is highlighted for convenience and clean water. Simple water to relieve your thirst Past - Groundwater Future – Functional Water As of 2011 – Spring Water

    8. BUSINESS OVERVIEW | CONSUMER MARKET ANALYSIS 3) Consumer Analysis by Age Diet and Exercise 20~30 age Alkaline Water Health Maintenance Health Promotion 40~50 age 60~80 age

    9. BRAND INTRODUCTION | 4P MIX ANALYSIS PRICE PRODUCT Alkaline water using natural principle first throughout the world Price • Department Store: 2,000 won • Convenient Store, Discount Store:1,800 won(1.56 $) PLACE PROMOTION Diverse Distribution Channel Human-oriented Communication Advertisement

    10. BRAND INTRODUCTION | AWATER PRODUCTION BACKGORUND 1) Interworking of Modern Society and Alkaline Water Created to neutrality of pH7.4 Alkaline Water Human body is gradually acidified by pollution and acidic food. Keep human body to neutrality of pH7.4 by drinking alkaline water. Alkaline Acidic Neutral

    11. Brand Introduction | Awater Production Background 2) One of the World's Three Miracles, Alkaline Water Mexico France Germany Lourdes Spring Water Tlacote Spring Water Nordenauer Spring Water Catholic sacred place producing miracle water it is known that the Virgin Mary revealed as many as 18 times. The rumor which this water remedies various incurable diseases has spread all over the world. About 5~6 millions of pilgrims every year visit there. The rumor, which a farmer drank this water was released from lumbago which he was suffered for years and also other persons drank this water became healthy, has spread all over the world. More than 8 million person every year visit there Thanks to plentiful calcium and dissolved active hydrogen, this remedy capacity has been proved from year 1991. It has been sorted into medical mineral water and used for patent remedy. <치료사례> 독일 노르데 나우물 멕시코 물은 “에이즈”에 감염된 미국의 농구스타 <매직존슨>이 물을 마시고 완치되어 더욱 유명해졌습니다.  우루과이의 몬테비데오 종합병원에서 환자 3,673명에게 1일 2~3리 터를 섭취케 한 임상 데이터에 의하면, 에이즈, 알레르기, 피부질환, 소화기 질환, 호흡기 질환, 당뇨병, 관절염, 암, 요통, 천식 등 200여 가지의 질병이 평균 80%가 치료되었다고 합니다.

    12. BRAND INTRODUCTION | AWATER PRODUCTION BACKGORUND 3) Existing Alkaline Water Method Electrolytic(Ionized) Reduction Water Principle: Alkaline water created from ⊝ electrode of electrolytic cell Unique structure among water molecules is destroyed by electrolysis. Bad absorption into human body Possibility of filter contamination Underground (Alkali) Rock Water Principle : Water created underground pH: 7.5 ~ 8.5 Microbe exists because of unpurified water. The best mineral alkaline water(Awater) is created by supplement of these defects.

    13. BRAND INTRODUCTION | PRODUCT Awater Introduction ◆ Capacity: 500 ㎖ ◆ Size: 60㎜×60 ㎜×210 ㎜ ◆ pH : 9.1~9.9 ◆ Shelf Life: 2 years from the date of manufacture ◆ Bar Code No.: 8809028460023 ◆ Unit: 1 Box = 20 Bottles 1 Palette = 66 Boxes

    14. BRAND INTRODUCTION | PRODUCT Logo The brand is designed that A水(Awater) can be pronounced to Eisu and two words of 'A' and '水' are visible as one symbol. 'A' for Awater is expressed by italic type to symbolize power and energy delivered to human bodies by Awater. 2) BOTTLE Based on the ideas of which pure water has a regular hexagon shape, the bottom is shaped to a regular hexagon. Side line is luxuriously designed with a flow of flexible curve.

    15. BRAND INTRODUCTION | PRODUCT 3) Concept Natural Natural principle full of natural life energy Natural Principle Technology Health Production of goods based on patented technology as well as perfect quality control and trust Research and development for systematic technology and know-how which can effectively approach to customers' health based on craftsmanship Patented Technology Health 4) Manufacture Process • Mineral Alkaline Water Manufacture Process • Pass it through AKR(alkaline water reactor) full of hundreds of thousand of ionic centrifuges • Convert mineral material into porous ionic centrifuges • Physically treat natural mineral material mined underground • Convert mineral material into porous ionic centrifuges eisu • Create alkaline water Newly Born Water Premium Mineral Alkaline Water

    16. BRAND INTRODUCTION | PRODUCT 5) Properties 1. Clean water without pollutants To remove all pollutants which may be contained into raw water, remove suspended solids using ultra filtration membrane(UF). Remove other all minerals and heavy metals using reverse osmotic membrane(RO). Use membrane deionization system(MDI) to remove small amount of ion which has not been removed by RO, and pure water will be created. 2. Plentiful Minerals There are dozens of minerals including calcium(Ca), phosphorus(P), potassium(K), sodium(Na), chlorine(Cl), magnesium(Mg), iron(Fe), iodine(I), copper(Cu), cobalt(Co), manganese(Mn) which are components of human body. Awater contains plenty of minerals helpful for human body such as calcium, potassium, magnesium among them. 3. pH 9.1~9.9 alkaline water helpful for human body For today's people who live in the era being flooded with food and environmental factors acidifying human bodies, Awater is not optional but essential. Awater contains a proper quantity of minerals based on soft minerals. Therefore, it is alkaline water whoever can drink regardless of age and sex. Awater Tap Water Acidic Ionized Water Reverse Osmosis(RO) Filter Spring Water

    17. BRAND INTRODUCTION | PRODUCT 5) Properties 4. Strong reducing power with good active oxygen removal capacity To recover the status acidified by acidic food and environmental pollution to the original status. Awater has Redox potential more than 3~6 times compared to common water and so it has excellent active oxygen removal capacity. Measure reducing power by analyzing the numerical value of active hydrogen which can give electron to active oxygen. High numerical value means strong oxidizing power, while low numerical value means strop reducing power. The stronger reducing power is, the higher active oxygen removal capacity increases. Make layers containing plenty of alkaline minerals, pass water through the layers, and desired alkaline water will be created. Lack of Sleep Virus Germ Attack from germ and virus Medicine Active Oxygen Human Body Active Oxygen Active Oxygen Removal of active oxygen by resistance of human bodies Active Oxygen Active Oxygen Active Oxygen Active Oxygen By drinking Awater, active oxygen must be removed from human bodies. 5. Water of which cluster(molecule) is small Water is generally composed of 13~15 clusters (molecules). The smaller these clusters are, the greater their movement increases. The original function of water increases as well accordingly. Based on MR(magnetic resonance) analysis result, Awater consists of small clusters whose frequency is 65.25㎐ (128.93㎐ for tap water by comparative analysis). Make layers containing plenty of alkaline minerals, pass water through the layers, and desired alkaline water will be created Comparison of Water Particle(Cluster) Size Small Water Small Water Small Water Small Water Small Water Small Water Small Water Long-lived Village Medicine Ground Water Spring Water Watermelon Awater Milk Tap Water Distilled Water Cell Membrane

    18. BRAND INTRODUCTION | PRODUCT 6) Alkaline Water Effects Diet Carbohydrate(Rice, Bread, etc) → Lactic Acid DecomposeGlucoseDecomposeFructose It is said that obesity is caused by lactic acid accumulated between cells. Alkaline water functions to neutralize and remove the lactic acid. Cell Cell Cell Diabetes Carbohydrate(Rice, Bread, etc) → Lactic Acid DecomposeGlucoseDecomposeFructose Cell Cell It is also said that when alkaline area between cells is formed, Ca++(calcium ion) is attached to cell surface and functions an insulin supply injector. Cell

    19. BRAND INTRODUCTION | PRODUCT 6) Alkaline Water Effects Removal of Active Oxygen Active oxygen is oxygen with strong oxidizing power. While noxious substances and oxygen absorbed in the body during stress and breathing are used for oxidation, active oxygen is created through various metabolism processes and attacks living tissues and damages cells. Also, it damages DNA and results in various diseases such as cancel, arteriosclerosis, apoplexy. Active hydrogen being contained in alkaline water removes active oxygen in human bodies by strong reducing power. Heart Disease The heart is surrounded with a lot of small veins. As blood flows into these veins, each small vein vibrates one by one and then several small veins vibrate simultaneusly and cause resonance. As a result, the heart pulses continuously. At this time, main factor causing vibration in the blood is deemed to be infinitesimal Mg++. Alkaline water contains infinitesimal Mg++, which is deemed to supplement factors causing bad influence on the heath like irregular pulse.

    20. BRAND INTRODUCTION | PRODUCT 6) Alkaline Water Effects Atopic Dermatitis Dr. Niwa Yukie in Japan revealed that active oxygen is a cause of atopic dermatitis. It is a recent opinion that when active oxygen is excessive, lipid peroxide is much created and a bad effect of lipid peroxide formed by active oxygen is large. When this increases in human bodies, it damages keratin layer and deteriorates skin moisture function and is likely to easily cause various troubles like dermatitis. If alkaline water removing active oxygen is continuously drunk, it removes residual active oxygen and is helpful for health. Osteoporosis When blood is acidified, calcium is extracted from bone or tooth to keep pH in blood high and becomes ion and wanders into blood. Then, bone and teeth is weakened, which becomes a cause of osteoporosis. If alkaline water is drunk for a long time, urolith or calculus is dissolved. Also, even though calcium is not separately taken, minerals such as calcium and magnesium surrounded with solid substances formed to prevent acidification of blood are dissolved and as a result, it is helpful for osteoporosis.

    21. BRAND INTRODUCTION | PRACE DISTRIBUTION CHANNEL Shinsegae Department Store, Lotte Department Store, Hyunai Department Store, AK Plaza, Galleria Department Store, Seoul Asan Hospital, Kyungpook University Hospital, Sam Hospital, KPGA, Resom Resort, E-Mart, Lotte Mart, Seoul University Hospital, Haeundae Hotel, 7-Eleven, Buy the Way, GS25, Family Mart, Cancer Center Supplied for Golf Course (about 10 places) / other 100 companies

    22. BRAND INTRODUCTION | PROMOTION 1. Promotion Communication Formation Focusing on natural promotion by communication formation rather than direct advertizing Communication PPL / Star Marketing Journal/Magazine Advertizing YTN TV CF • Broadcasting every year • CF preparation based on image concept • Expanding consumer layers by highlighting YTN advantages broadcasted home and overseas • Induce indirect advertizing effect through characters appearing to entertainment programs • Marketing in relation to transmitting orally by TV stars • Communication formation between generations through newspaper companies, child care, fashion, magazine advertising

    23. BRAND INTRODUCTION | PROMOTION YTN TV CF Story : B-boys experience failure in spite of continuous practice. However, after drinking Awater, they recover vitality.

    24. BRAND INTRODUCTION | PROMOTION PPL/ Star Marketing Awater Drinking of KBS TV Program [Cheonhamujeok Baseball Team] A couple of Jang Dong-Geon and Go So-Yeong (famous TV stars) is known to pay special attention to health care by drinking Awater manufactured by Korea Alkaline Water, which is the brand of portable water good for skin and diet. Awater Drinking of MBC TV Program [Three Wheels] [Jang Dong-Geon, Go So-Yeong]Awater Drinking

    25. PRODUCT INTRODUCTION | PROMOTION Newspaper Advertizing/ Announcement • Seoul Economy • 10/29: Selection of Korea Superior Companies •  Korea Economy • 09/10: Morning Paper 2nd page (Full-page Color Advertizing) • 09/11: Evening Paper 4th page (Full-page Color Advertizing) • KyunghangShinmun • 12/18: Selection of Kyunghang Hit Goods • 01/07: This Paper 1st page (Five Steps Color Advertizing) • 01/22: This Paper 3rd page (Five Steps Color Advertizing •  Money Today • 10/13: This Paper (Full-page Color Advertizing) • 10/15: This Paper (Full-page Color Advertizing) • 11/30: This Paper (Full-page Color Advertizing) •  Free Newspapers: Metro, Focus, AM7, City Plaza, Biz Life, etc. • JungAngIlbo • 09/08: Section 1st page (Five Steps Color Advertizing) • 09/09: Economy 4th page (Five Steps Color Advertizing) • 09/09: Business Opening (News Posting / Brief Message) • 10/12: Health & Life 1st page (Five Steps Color Advertizing) • 11/02: Health & Life 2nd page (Five Steps Color Advertizing) • 11/03: Business Opening 1st page (Five Steps Color Advertizing) • ChosunIlbo • 03/18: (Five Steps Color Advertizing) • 09/11: Economy 7th page (Five Steps Color Advertizing) • DongAIlgo • 03/19 (Five Steps Color Advertizing)

    26. PRODUCT INTRODUCTION | PROMOTION Magazine Advertizing/Announcement • Woman Joongang: October / November / December • Woman Chosun: October / November / December • Baby: December • Queen : March • (Korea Economy) : Life/Culture on September 14 • Joins (JungAngIlbo) : Economy on September 15 • Money Today: Economy on October 13

    27. R&D CENTER | INTRODUCTION • Company Name: HankookJungsoo Industries Co., Ltd. • Representative Director: Kyu-Chul Lee • Date of Establishment: February 12, 1959 • R&D Center: #1281-2, Jeongwang-dong, Siheung-si, Gyeonggi-do, Korea • Website :

    28. R&D CENTER | EXPERIMENT Experiment Using NMR(Nuclear Magnetic Resonance) System Awater: 65.25Hz Tap Water: 128.93Hz Water with small cluster has strong penetrability and can be softly swallowed without stomach pain. It has low boiling point and is good for health Awater is pH9.1~9.9 of weak alkaline water which prevents human bodies from acidifying.

    29. R&D CENTER | EXPERIMENT Onion growth experiment result shows that its growth potential was improved without rot in spite of the lapse of 16 days. Awater Tap Water Awater contains plenty of hydrogen ions essential to remove active oxygen.. Awater Tap Water

    30. R&D CENTER | CHEMICAL TEST Whenever Awater is produced at HaJI R&D Center, chemical test is performed. Chemical test is quarterly performed by the national authorized test institution.

    31. FACTORY | INTRUDCITON Yeoju Factory locating in the recesses of a mountain in which clear water of Namhan River flows Thanks to not many high mountains, sweet sunshine is pouring all day. Large diurnal range compared to other areas guarantees the best water quality. Clean Raw Water Control Awater R&D Center performs regular water analysis everyday based on the water analysis data for 46 items required by the domestic law (Enforcement Ordinance of Groundwater Law).

    32. FACTORY | INTRUDCITON Factory Facility Flow Chart for All Production Process, Automation Clean Production System Construction

    33. FACTORY | DOCUMENT Patent Certificate – Alkaline Water Manufacture Method FDA Inspection Certificate

    34. FACTORY | DOCUMENT Factory Registration Certificate Business Registration Certificate

    35. FACTORY | DOCUMENT Product Liability Insurance Business Declaration Certificate

    36. Won a Korean Strong Company Award Selection of Hit Products

    37. Thank You. • [Address] • Main Office: #400, Moknae-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea • Factory: : #67-5, Gangcheon-ri, Gancheon-myeon, Yeoju-gun, Gyeonggi-do, Korea • R&D Center: 303, 3-Da, 1281-2, Joengwang-dong, Siheung-si, Gyeonggi-do, Korea