INVESTOR RELATIONS 2016

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1 INVESTOR RELATIONS 2016

2 Disclaimer This presentation was prepared by JEJU AIR Ltd. (hereafter the Company ) for the purpose of investor presentation. Please note that the possession, copying or external distribution of this presentation is prohibited. By attending this presentation, you are agreeing to be bound by the foregoing limitations and please be noted that any violation of the limitations could constitute the breach of the Capital Market and Financial Investment Business Act. Forecast included in this material has not gone through the individual verification process. It is related to future events, not past events, and refers to expected management status and financial performance of the Company. As an indication, it contains words like expected, forecasted, planned, anticipated, and (E). Forecast is affected by the changing future management environment and includes uncertainly by nature. Such uncertainty could cause significant discrepancy between actuals in the future and what is indicated or described in Forecast. Furthermore, the future forecast was prepared as of the date of preparing this presentation in consideration of the current market status and the direction of the company management and therefore is subject to change according to the fluctuating market environment or strategic adjustment without any prior notice. The Company and its executives and employees will not be held accountable for any losses associated with the use of this presentation (including negligence and others). Please be noted that this presentation does not constitute solicitation of sales or investment of stocks or any part of the presentation cannot form the basis or foundation for related contracts, agreements or investment decision. Any or all investment decisions related to stock purchase should be based on the registration statement submitted or the information provided in the (preliminary) prospectus.

Financial Highlights Appendix 01. Enhance Strategic Routes Portfolio 02. Expand Ancillary Revenue 03. Cost Competitiveness 04.

3 Ch 1. Industry Overview Ch 2. Company Overview Ch 3. Investment Highlights 01. Global Air Transport Industry 02. Domestic Transport Industry 03. Growth Potential of Low Cost Carrier Ch 4. Growth Engine 01. No.1 LCC 02. Flight Routes Portfolio 03. Ancillary Service Items 04. Financial Highlights Appendix 01. Enhance Strategic Routes Portfolio 02. Expand Ancillary Revenue 03. Cost Competitiveness 04. Proactive Investment for Growth 05. Outstanding Business Performance 01. Sustainable Growth Foundation 02. Vision ShareHolders 02. Company Overview 03. Growth History 04. Summary Financials 05. Key Accolades

4 INVESTOR RELATIONS 2016 Ch 1. Industry Overview 01. Global Air Transport Industry 02. Domestic Transport Industry 03. Growth Potential of Low Cost Carrier

5 01. Global Air Transport Industry Ch 01. Industry Overview Continued Growth of Global Air Transport Industry Mainly Led by Asia Pacific Region Regional Annual Growth Potential for 2015 ~ 2034(E) Europe 3.6% Middle East 6.7% CIS 4.9% Asia Pacific 5.7% North America 2.5% Unit : RPKs 1) (billion) 2,000~ 1,000~2,000 Africa 5.3% Latin America 5.2% ~1,000 Note 1) : Revenue Passenger Kilometer (RPK) calculated as # of paid passengers multiplied by travel distance Source : Boeing (2014), Current Market Outlook, Airbus(2015), Global Forecast Growth of Global Air Transport Industry 2005 ~ 2015 LCC* Transport Performance FSC* Transport Performance 2,109 2,422 2,448 2,824 3,120 Unit : million persons 3,395 05~ 15 LCC 12.2% FSC 3.1% '05 '07 '09 '11 '13 '15(E) Note : Low Cost Carrier (LCC), Full Service Carrier (FSC) Source : KADA, Pocket Aviation Status (2015), NH Investment & Securities 5

Engine for Public Air Transport LCC, Leading the

Growth of Korean LCC (M/S) Domestic International

Carriers 38.59% 0.03% 17.9% 35.6% 61.38% 45.

6 02. Domestic Transport Industry Ch 01. Industry Overview Low Cost Carrier, New Growth Engine for Public Air Transport LCC, Leading the Era of the Public Transport by Air Exponential Growth of Korean LCC (M/S) Domestic International Unit : million persons ~ 15 CAGR 9.6% million 28.0 Domestic Nat'l LCC Nat'l FSC 90.3% 9.7% 56.3% 43.7% 16 1H National LCC 56.3% 18.1 LCC International line business launched International Nat'l LCC Nat'l FSC Foreign Carriers 38.59% 0.03% 17.9% 35.6% 61.38% 45.6% '09 '10 '11 '12 '13 '14 ' H National LCC 17.9% Source : Korea Tourism Organization, Annual Statistics Source : Air Portal, Press Release 6

7 03. Growth Potential of Low Cost Carrier Ch 01. Industry Overview North East Asia Offers High Potential Growth Environment for LCC s Air Transport Share of LCC by Region Opportunity for High Potential Growth 54% 50% 36% 33% 29% 28% 26% +12% +38% NE Asia indicates higher Growth potential for LCC s 16% 9% 12% 9% 1% SE Asia S Asia Europe Lat America N America World Oceania NE Asia China Middle East Africa Former CIS Source : Diio/Innovata 2015, Annual seats basis Region s GDP and the Number of Outbound Tourists Expected to Continuously Growth GDP vs # of Overseas Travelers # of overseas travelers per 100 (person) 180 Mexico China Saudi Arabia Italia Korea France Japan Sweden Netherland UK Canada USA Per Capital GDP (USD) 0 10,000 20,000 30,000 40,000 50,000 60, Trend & Forecast of Chinese Visiting Korea Expenditures by Chinese tourists in Korea (USD billion) 5-year forecasted CAGR For in-bound tourists : 20% For their expenditure : 30% # of Chinese visiting Korea (million persons) '05 '07 '09 '11 '13 '15 '17 '19 # of Chinese visiting Korea in 2018 : 10 million(e) 출처 : World Bank, CEIC (2012 basis) Source : CEIC, Samsung Securities Source : KTO, JNTO, ebest Investment Securitirs Research center # of outbound tourists vs population (Korea, China, Japan) # of outbound travelers (10,000) as % of total population 31.3% 1,608 11, % 13.3% 1,690 Korea China Japan 7

8 INVESTOR RELATIONS 2016 Ch 2. Company Overview 01. No.1 LCC 02. Flight Routes Portfolio 03. Ancillary Service Items 04. Financial Highlights

regions 160 flights per day Recording profits for 4 years in a row No.1 LCC in terms of revenue and operating income No.

9 01. No.1 LCC Ch 02. Company Overview JEJU Air, Innovator of the Domestic Air Transport Industry 25 Units of B international routes, 5 domestic routes - Operating 29 routes Covering 8 regions 160 flights per day Recording profits for 4 years in a row No.1 LCC in terms of revenue and operating income No.1 LCC JEJU Air # of accumulated passengers : 30 million - No.1 LCC at Incheon Int l Airport Zero incidents - 300,000 flight hours - 4,283 time of travel around the Earth Sales of ancillary service items introduced and put in operation for the first time in the market First IOSA* certified LCC *IOSA (IATA Operation Safety Audit) : Runs the global aviation safety evaluation and certification program 9

Routes with 25 Aircrafts Flight Portfolio

Okinawa, Sapporo Jiamusi, Beijing, Weihai,

Zhangjiajie, Huangshan, Ningbo, Yangzhou,

Bangkok, Phuket Hanoi, Danang Oceania Guam,

10 02. Flight Routes Portfolio Ch 02. Company Overview Operating 29 Direct Flight Routes with 25 Aircrafts Flight Portfolio (30 Routes for 8 Regions) Revenue Breakdown by Region Jeju, Gimpo, Busan, Cheongju, Daegu Tokyo, Nagoya, Osaka, Fukuoka, Okinawa, Sapporo Jiamusi, Beijing, Weihai, Shijiazhuang, Chingtao, Taiyuan, Xuzhou, Zhangjiajie, Huangshan, Ningbo, Yangzhou, Wenzhou, Hong Kong, Macao Domestic Japan China 4% 1% 13% 26% 2010 Revenue 157.5bn 56% Taipai Manila, Cebu SE Asia Bangkok, Phuket Hanoi, Danang Oceania Guam, Saipan Non-scheduled Ancillary 2% 7% 11% 28% 19% H Revenue 335.3bn 11% 22% 10

Services for Customer Convenience Pre-Flight

confirmation Next seat sale Air Café Hotel

Car rental Reservation Center fee Packaging

Traveler insurance Cancelation fee On-site

11 03. Ancillary Service Items Ch 02. Company Overview Offering Various Ancillary Services for Customer Convenience Pre-Flight Departure Onboard Arrival Pre-seat confirmation Next seat sale Air Café Hotel Pre-meal order Extra luggage Duty-free sale Car rental Reservation Center fee Packaging supplies sale Sale of Jeju specialty Traveler insurance Cancelation fee On-site ticketing fee products Pocket Wi-Fi Change fee Lounge coupon FIT lounge Offer more customer convenience services + Develop new products through partnerships 11

Operating 단위 : 억원, % 11.3 income N.I Income(%) N.I(%) 8.5 10.7 6.5 6.3 CAGR 23.9% 51.1 60.8 5.4 1.5 4.5 3.9 5.8 7.7 4.8 5.0 34.

12 04. Financial Highlights Ch 02. Company Overview Continued Growth & Improving Profitability Revenue Operating & Net Income Unit : KRW billion Operation Operating 단위 : 억원, % 11.3 income N.I Income(%) N.I(%) CAGR 23.9% # of Aircrafts (unit) '11 '12 '13 '14 '15 '16 1H '15 1H '11 '12 '13 '14 '15 '16 1H '15 1H 12

13 INVESTOR RELATIONS 2016 Ch 3. Investment Highlights 01. Enhance Strategic Routes Portfolio 02. Expand Ancillary Revenue 03. Cost Competitiveness 04. Proactive Investment for Growth 05. Outstanding Business Performance

14 01. Enhance Strategic Routes Portfolio. Ch 03. Investment Highlights Build various route networks based on NE Asia s high potential demand 147 Mega Cities 1) within 3 Hour Flight Mega cities within 3 hour flights Chengdu Bangkok Ulaanbaatar Hanoi Chongging Haiphong Ho Chi Minh Beijing Guangzhou Shenzhen Hong Kong Manila Harbin Shenyang Incheon Shanghai Seoul Busan New Taipei City Quezon City Osaka 1,000km 2,000km Tokyo Yokohama 3,000km Within 1,000km ,680,000 # of cities population 1,000 ~ 2,000 km ,470,000 # of cities population 2,000 ~ 3,000 km 20 47,240,000 # of cities population Augment Existing Routes Japan, Hong Kong Maximize market share of profitable routes Enhance Revenue management Prioritize investment to secure slots Develop New Destinations China, Russia, Mongolia Develop new core routes Run non-scheduled flights to secure operation track record Speedy turn around to profitable routes Population Mega cities near Korea Expand Networks (Unit : million person) Americas, Europe Establish partnerships Beijing (China) Hong Kong (China) Hanoi (Vietnam) New Taipei City (Taiwan) Yokohama (Japan) Quezon City (Phillippines) Ulaanbaatar (Mongolia) Build foundation for alliance expansion Maximize network diversification Note 1) mega cities : population with more than 1 million Source : Chosunbiz (Feb 28, 2014), Hyundai Economic Research Institute 14

Development of Ancillary Revenue Total Revenue Increase % of Ancillary Business in the Total Revenue 7.0% 7.

6% '10 '11 '12 '13 '14 '15 '16 1H Customer Segmentation Domestic LCC Characteristics of Ancillary Revenue 1 Enable to offer a

15 02. Expand Ancillary Revenue Ch 03. Investment Highlights Transforming Ancillary Items into Revenue Generating Services and Expanding its Portion in the Revenue Mix Development of Ancillary Revenue Total Revenue Increase % of Ancillary Business in the Total Revenue 7.0% 7.3% Customer Diversification 0.9% 1.4% 2.8% 3.1% 4.6% '10 '11 '12 '13 '14 '15 '16 1H Customer Segmentation Domestic LCC Characteristics of Ancillary Revenue 1 Enable to offer a reasonable fare system to promote customer demand T J A Initial Stage E 2 Offer customers options to choose for convenience Maximize Ancillary Revenue Introduce Ancillary Items Expand Ancillary Items Introduce Fare family Reduce revenue fluctuations between peak and off-peak seasons Reduce the sensitivity of price competition High gross margin 15

Training SIMPLE Maximized effects of the economies of scale Stronger purchasing power for airplane parts and efficient inventory management Improved specialty and safety along with the growing skill

16 03. Cost Competitiveness Ch 03. Investment Highlights Cost Competitiveness Supported by Low Cost Structure Cost Competitiveness Activities Operating Single Type Aircrafts Purchase JEJU Air 189 seats Company K 159 seats Maintenance Training SIMPLE Maximized effects of the economies of scale Stronger purchasing power for airplane parts and efficient inventory management Improved specialty and safety along with the growing skill levels Improving Asset Utilization Efficiency Asset utilization at the industry top level Productivity enhancement using single seat class [Comparison of # of seats numbers for B ] Expand Direct Sales +16% more Focus on easy to use and design a new FFP policy Invest to e-commerce including home pages and mobile app s Economies of scale, lowered unit contract price Higher efficiency through integrated purchase of supplies Established fuel saving operation procedure In-house catering Outsourcing for operational efficiency Revamping sales fee system 2015(E) Saved CASK 1.7% 16

04. Proactive Investment for Growth Ch 03.

Introduction of the In-house Flight Crew Nurturing System Stabilization of crew supply & demand :

training programs and facilities - Training Facilities Introduced - CAE Partnership SIM Training [

Investment for the Flight Safety System IOSA certificate renewed for four consecutive times

Established Safety Management System based on the agreement with the Ministry of Land,

17 04. Proactive Investment for Growth Ch 03. Investment Highlights Proactive Investment for Growth and Stable Operating System in Place Early Introduction of the In-house Flight Crew Nurturing System Stabilization of crew supply & demand : the proportion of flight crew hired and trained by JEJU Air is increasing Strengthened flight crew training programs and facilities - Training Facilities Introduced - CAE Partnership SIM Training [ Changes on the Composition of JEJU Air Crews ] JEJU Air K A Military Others 60% 15% '10 '14 Investment for the Flight Safety System IOSA certificate renewed for four consecutive times ( ) FOQA (Flight Operational Quality Assurance), daily flight information analysis system Established Safety Management System based on the agreement with the Ministry of Land, Infrastructure and Transport Enhancing the flight safety procedure analysis through the registration with IATA s Flight Data Exchange (FDX) - Flight Animation Program (CEFA FAS) 17

18 INVESTOR RELATIONS 2016 Ch 4. Growth Engine 01. Sustainable Growth Foundation 02. Vision 2020

01. Sustainable Growth Foundation Ch 04.

Innovation Capital Expansion Expand business networks New

aircraft introduction structure Strengthen risk management

Portfolio Build strategic management system Continued cost

19 01. Sustainable Growth Foundation Ch 04. Growth Engine Sustainable Management System through Constant Innovation Capital Expansion Expand business networks New Business Opportunities Aircraft Optimization Improve the aircraft introduction structure Strengthen risk management Sound Financial Structure Sustainable Growth Strategic Route Portfolio Build strategic management system Continued cost saving efforts Cost Competitiveness Revenue Mix Diversification (Ancillary Revenue) Generate new revenue sources 19

20 02. Vision 2020 Ch 04. Growth Engine From No.1 LCC in Korea to No.1 LCC in North East Asia 20% Growth START Linked Products Safety Team work Attempt Remove Trust Safety Team work Attempt to Challenges Low Cost Trust 20

21 INVESTOR RELATIONS 2016 Appendix 01. Offering Overview 02. Company Overview 03. Growth History 04. Summary Financials 05. Key Accolades

21 JEJU Province JEJU Province 2,000,000 7.70% 6.25 7.7 57.

22 01. Share Holders Appendix Shareholders AK Holdings Shareholders # Shares Ownership Aekyung Co.,Ltd AK Holdings 14,819, % 단위 : % Aekyung Co.,Ltd 1,657, % 4.21 JEJU Province JEJU Province 2,000, % National Pension Service National Pension Service 1,622, % ESOP 1,092, % 6.38 ESOP Others 4,773, % TOTAL 25,965, % Others 22

02. Company Overview Appendix Company Overview Name

Foundation January 25, 2005 CEO Anh Yong-Chan, Choi

KRW 129 billion Address 64 Shindae-ro, Jeju-si, Jeju

Construction Mutual Aid Center) # of Employees 1,539

net Business Air transport services Management CEO

Aekyung Currently Vice Chairman of Living & Aviation

overall business supervision Resources Engineering,

23 02. Company Overview Appendix Company Overview Name JEJU AIR Ltd. Foundation January 25, 2005 CEO Anh Yong-Chan, Choi Gyu-Nam Capital Stock Approx. KRW 129 billion Address 64 Shindae-ro, Jeju-si, Jeju Special Self-Government Province (Yeon-dong, Construction Mutual Aid Center) # of Employees 1,539 persons Homepage Business Air transport services Management CEO Ahn, Yong-Chan CEO Choi, Gyu-Nam Business Administration, Yonsei Univ. University of Pennsylvania Wharton School MBA CEO of Aekyung Currently Vice Chairman of Living & Aviation Unit, Aekyung Group Currently CEO of JEJU AIR with overall business supervision Resources Engineering, Seoul National Univ. Industrial Business Management, Stanford Univ. Former Chairman of Korea Game Industry Promotion Agency Former Head of Dongguk Univ. Cultural Contents Promotion Center Currently CEO of JEJU AIR 23

24 03. Growth History Appendix Establish -ment On the Growth Leap Forward 2013 ~ Present 2005 Jan Aug 2005 ~ 2008 JEJU AIR established Achieved regular air transport biz license 2009 Jan Mar Apr 2009 ~ 2012 First IOSA certified LCC First LCC operating Japan route (Osaka) First LCC operating Thailand route (Bangkok) 2013 Oct 2014 Jul First National Carrier operating Guam & Saipan routes together First LCC marking 20 million passengers milestone 2006 Jun First LCC operating domestic flight 2005 May First LCC operating B Jun First LCC operating international line license Jul First LCC operating international flights (Non-scheduled) 2010 Oct Nov First LCC operating Hong Kong route First LCC operating Philippines route (Manila) 2012 May First LCC marking 10 million passenger milestone Jun Operating China route (Qingdao) Sep Operating US route (Guam) 2015 Apr Nov 2016 JAN JUL Launched Taiwan route (Taipei) First LCC listed on KOSPI First LCC Marking 30 million passengers ) Launched Malaysia route 24

25 04. Summary Financials Appendix Summary Statement of Financial Position Category H Standard K-IFRS K-IFRS K-IFRS K-IFRS Current Assets 106, , , ,40 Non-Current Assets 74,887 85, , ,556 Total Assets 180, , , ,495 Current Liabilities Non-Current Liabilities Total Liabilities Unit : KRW million 97, , , ,310 34,247 47,663 45,916 54, , , , ,326 Capital Stock 110, , , ,534 Summary Income Statement Unit : KRW million Category H Standard K-IFRS K-IFRS K-IFRS K-IFRS Sales 434, , , ,258 Cost of Sales 372, , , ,515 Gross Profit 61,520 87, ,990 55,742 SG&A 44,495 57,800 70,580 39,503 EBIT 17,026 29,519 51,409 16,239 Other P&L (92) 2,391 4,131 1,076 Capital Surplus Capital Adjustment Retained Earnings Shareholders Equity ,977 87,979 (536) (230) (60,463) (29,713) 13,607 19,868 49,035 80, , ,169 Financial P&L 2, ,541 3,903 EBT 19,653 32,007 52,999 21,217 Income Tax - - 5,842 4,593 Net Income 19,653 32,007 47,157 16,623 25

05. Key Accolades Appendix IATA IOSA 7 th Edition Certified (2015) Leading Job

26 05. Key Accolades Appendix IATA IOSA 7 th Edition Certified (2015) Leading Job Creator President Award for Two Consecutive Years (2014~2015) Korea Brand Power First Award for Low Cost Carrier (2015) National Consumer Driven Brand (NCDB) Award (2015) Korea Consumer Award for Low Cost Carrier (2015) Korea Management Award for Sustainable Management (2015) Korea Leading Brand Award for Two Consecutive Years (2014~2015) ISMS Certified (2015) Web Accessibility Certified (2014) 26

INVESTOR RELATIONS Earnings Release

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