BLACKYAK

BLACKYAK & DONGJIN LEISURE

In 2013, 40th anniversary of BLACKYAK & Dongjin Leisure,

we will be one of the top 5 global outdoor brands.

New Vision, New Challenge

Born in Himalaya, BLACKYAK and Dongjin Leisure lead the

renaissance of outdoor business in Korea with the concept of

“for mountaineers by mountaineers.”

BLACKYAK and Dongjin Leisure are ready to challenge global

outdoor market, starting with the successful expansion of the

business into China and Japan with world class products of

quality and technology.

In the near future, we will be the top-class global outdoor group.

FRANCE UZBEKISTAN

HIMALAYACHINA

RUSSIA

INDIA

06 07New Challenge

AMERICA

CEO Message *

Since its beginning in 1973 starting as “Dongjin Mountain”, BLAKCYAK & Dongjin Leisure

continue to grow as one of the leading outdoor brands in Korea with the brand portfolio

of BLACKYAK, mountia, and karrimor.

We take great care of ensuring that we provide a wide range of quality products for Mt. Everest

expedition as well as day hikers, so customers love our products and enjoy outdoor life.

As a result, we are composed with a diverse portfolio of brands: “Himalayan original”

BLACKYAK, “mountain utopia” mountia, and “British Original” karrimor.

Moreover, BLACKYAK and Dongjin Leisure have challenged outside Korea while other brands

were solely focused on Korean market.

We became the first outdoor brand in Korea to establish foreign branch in China and have

continued to increase the business to become No. 1 outdoor brand in China.

Despite the accolades and growth, we continue to challenge ourselves to better serve

our customer for years to come.

We would not settle down where we are now.

We keep challenge the status quo for the bigger picture.

We believe that we will become the leading outdoor brand and be regarded as No.1 brand

by professional mountaineers and outdoor enthusiasts.

To conquer the top, we make sure that customers always come first and they are in the center

of our growth.

Thank you for your endless support, and we look forward to sharing with you the profound

progress of BLACKYAK and Dongjin Leisure.

Sincerely,

To be the leading outdoor group in the world,

WE CHALLENGE EVERYDAY!

We will be one of the global top 5 outdoor brands in 2013, 40th anniversary of BLACKYAK

and Dongjin Leisure.

President & Chief Executive Officer

BLACKYAK and Dongjin Leisure

Kang, Tae-Sun

08 09New Challenge

Vision

| Customer care |Customers are our teacher.

Customers lead BLACKYAK and Dongjin Leisure

to future like teacher.

We serve every customer with all our heart.

| Quality first |Quality is our life.

Everything starts from quality and we work hard to

earn our reputation for quality and technology.

| Dedication |We are grateful for the dedicated service of our

employees who share the vision of BLACKYAK

and Dongjin Leisure.

| Rule of Mountain |True mountaineers climb by the rule of mountain.

Rule of mountain can be applied into real life.

We learn from mountain moderation, tolerance,

and perseverance and we do business based

on the rule of mountain.

We learn from nature and go with the ways

of nature.

Management

Ideology

Customer care

Rule of Mountain

IdeologyManagement

10 11New Challenge

Qua

lity fir

st

Ded

icat

ion

HISTORY*BLACKYAK and Dongjin Leisure have developed for the last 40 years with mountaineering and outdoor apparel and gears.From our first step as ‘Dongjin Mountain’ now on, we have been trying to be one of leading companies in the area of mountaineering and outdoor products business. In 2010, ‘Dongjin Leisure’ was separated from ‘BLACKYAK’. now, we are ready for the quantum jump for being the world-class outdoor corporation.

1973 Establsihed ‘Dongjin Mountain.’

1976 Launched own brand ‘PRO-GIANT’

1979 Authorized Supplier of Boy Scout Korea

1982 Authorized supplier of Korea Youth Association

1988 Sponsorship of Korean Alpine School

1989 Authorized supplier of Korean Police Rescue Team

& Special Forces.

1990 The completion of the Dongjin Leisure

building in Abgujeong-Dong

1991 Official sponsor for Korea World Jamboree

1993 Sponsored ‘Cho Oyu(8,201M) / Shisha

Pangma(8,027M) Expedition Team’

1994 Changed corporate name

to ‘Dongjin Leisure’

Started International Boy Scout supplier

service to France, Switzerland and Japan

Contracted licensing deal with Gore-Tex Manufacturing

1996 Registered ‘BLACKYAK’ in China, Japan and Europe

2000 Sponsored ‘New Millennium Seven Summit Expedition Team’

2002 Launched own brand ‘mountia’

2003 Sponsored ‘BLACKYAK-Seoul/ Tibet Joint

Everest(8,850M) Expedition Team’

2004 Awarded Athletic Order of White Horse Merit

2004 Participated in 15th China International Sporting Goods Show

2005 Held BLACKYAK Cup 1st Seoul International Bouldering

Championship

2005 Participated in 16th China International Sporting Goods Show

2005 Established R&D laboratory

2006 Exhibited in ISPO China

2006 Held BLACKYAK Cup 2nd Seoul

International Bouldering Championship

2006 Moved to Gasan-Dong office (Seoul)

2006 Sponsored Mt. Samgak Mountaineering Festival

Sponsored 9th Seoul Mayor Cup Climbing Competition

2006 Sponsored 7th Seoul Superintendent Youth Sports

Climbing Competition

1997 Sponsored ‘BLACKYAK- Annapurna(8,091M)

/Kangchenjunga(8,586M) Expedition Team’

1997 Sir Edmund Hillary, the first Conqueror

of Mt. Everest visited our company.

1997 Opened warehouse & distribution center

1998 Established China branch and opened

Beijing store

1973

1980

1990

2000

12 13New Challenge

2007 Brand Identity Renewal of ‘BLACKYAK’

and ‘mountia’

2007 Held BLACKYAK Cup 3rd Seoul

International Bouldering Championship

2007 Introduced original British brand ‘karrimor’

2007 Awarded Seoul Athletic Order of Culture

2008 Started sponsorship of woman climber ‘Eun-sun Oh’

2008 Sponsored Korea Pediatric Cancer Foundation

2008 Held BLACKYAK Cup 4th Seoul International Bouldering

Championship Sponsored Korean Astronaut Program

2008 Conducted collecting old cell phone campaign with Korea

Association of Electronics Environment

2008 Sponsored Dokdo Academy

2008 Licensing deal with Swarovski

‘CRYSTALLIZED Elements’

2009 Sponsored Dokdo Marathon

2009 Started to BLACKYAK Climbing School

2009 Sponsored 12th Seoul Mayor Cup Climbing

Competition

2009 Held 2nd Dongjin Leisure Weekend Climbing School

2009 Invented independently ‘CDP Embo’ sponsored

by Ministry of Knowledge Economy

2009 Held ‘BLACKYAK Dokdo Exploring event’

2009 Had a gathering to commemorate the publication of ‘Top

in My Heart’ by Tae-sun Kang Sponsored Korea Pediatric

Cancer Foundation

2009 Held a celebration ‘Eun-sun Oh’s consecutive climb

of four 8,000m’ ; Kangchenjunga-Nanga

Parbat–GasherbrumI–Dhaulagiri I)

2010 ‘BLACKYAK’ ‘Dongjin Leisure

(mountia, karrimor)’ spin off

2010 Awarded The 44th ‘Taxpayer’s

Day’ Excellent taxpayer Prize

2010 Awarded The Marketing Frontier

Awards ‘Brand Strategy Prize’

2010 Hold BLACKYAK Climbing School

2010 Held a celebration ‘Eun-sun Oh’s Success in reaching

14 summits of 8,000m’

2010 Started campaign of climbing 14 summits of Korea

with Eun-sun Oh’s

2010 Sponsored The 13th Seoul Mayor Cup Climbing

Competition

2010 Contracted MOU with Duoback Korea

2010 Official Apparel Supplier of The 5th G20 Summits Press’s

2010 Opened BLACKYAK online shopping mall and

renewed ‘Dongjin Leisure’ web site

2010 Awarded The 6th Korea Sports Industry Awards

Awarded The Ministry of Culture & Tourism Awards

2010 ‘Top in My Heart’ in 3rd printing

2010 Voted Excellent Sports gear company

2011 Launched a Duoback bag

2012 Established automatic distribution center (30,000 )

2010

Award

Jun 29 2011 “Korea Customer Satisfaction Award 2011” presented by ChosunBiz.

Oct 28 2011 “Korea Eco Friendly Business Award 2011” in outdoor industry presented by Eco Media.

Nov 2 2011 “Best Advertising Award 2011” in outdoor industry presented by the Chosunilbo

Mar 2010Awarded The 44th ‘Taxpayer’s Day’ Excellent Taxpayer Prize

Nov 2010Awarded The 6th Korea Sports Industry Awards Awarded The Ministry of Culture & Tourism Awards

Apr 2010Awarded The Marketing Frontier Awards ‘Brand Strategy Prize’

Jun 1 2011 “Award of Excellence for Highest Satisfaction” in outdoor leisure industry presented by Korea Society of Consumer Studies

Aug 2011Awarded The 6th Korea Sports Industry Awards Awarded Korea Ministry of Culture & Tourism Awards

Mar 2004 Awarded Athletic Order of White Horse Merit

2007 Awarded Seoul Athletic Culture

Sep 2008 Awarded Korea Ministry of Environment

We go with the ways of mountain, rather than

try to conquer the mountain.

We deliver outdoor culture, rather than try to

promote the brand itself.

As a result, we are fortunate to be recognized

by professional mountaineers and outdoor

enthusiasts as serious outdoor people who

care about nature, mountain, and life of

mountaineers. Among the awards we received,

customer satisfaction is the one we are most

proud of.

We will continue to work hard to make everyday

people who love outdoors happier in the great

outdoor with our quality product.

Organization Chart Organization

Management

14 15New Challenge

PREIDENT

Vice President

Global Business Team

ManagementSupport Div.

General Affairs Team

Merchandising Team

BusinessDevelopment

Team

Direct Shop TeamStrategy PlanningTeam

Management Planning Team

Design CenterRoad Shop TeamAdvertising&PR Team

Finance Team Sourcing TeamDept. Store TeamGraphic Design Team

M.I.S Team Quality Control Team

E-Biz Team

VMD Team

Maketing Div. Sales Div. Product Planning Div.

New Business Div.

Logistics Center

Customer Satisfaction Team

HR Committee

Management Committee

Internal Auditor

16 17Advantages

The Best o f BestADVANTAGES

DESIGN

TECHNOLOGY

MANUFACTURE

LOGISTICS

BLACKYAK & Dongjin Leisure Advantage 1

18 19Advantages

Design“BLACKYAK and Dongjin Leisure” are recognized by professional mountaineers as

high quality technical outdoor gear; however, we do not stay here and go further to

meet challenging needs of expedition teams and promote new outdoor culture to help

customers engage in nature.

It was believed in Korea that outdoor products don’t need aesthetic appeal in the past.

However, we think outside the box, and we invest in aesthetics of outdoor product

with in-house design lab and set aside 10% of net sales for design development.

Differentiated investment leads us to outstanding brand position as creative original

outdoor company among other national brands. As a result, our customers have more

choices to meet their specific activity needs from expedition gear to everyday city wear.

Innovative design and business process also enables us to develop competitive product

design for each brands, BLACKYAK, mountia, and karrimor.

We first introduce the concept of innovative fashionable design in outdoor product.


20 21Advantages

TechnologyWe aggressively invest in R&D to develop new technology and material as well as

cooperate with global companies for licensing opportunities. We work hard to produce

innovative quality products for our customers. Furthermore, we continue to develop

technology to better provide safe and excellent product in perspective of 100 year.

New Material Outdoor products have to work in severe weather conditions to

protect the life of mountaineers.

We work hard with prestigious research organizations to develop

state-of-the-art materials based on our 40-year know-how.

Pattern Research

We have dedicated professionals to develop scientific and

functional patterns utilizing Body Mapping System.

Professional R&D

R&D is one of our top business priorities and competitive R&D

team leads the technical project inside the company as well as

work with outside research labs.

Quality Control

Every product must go through careful examination before put

on shelf. For this happening, we check out every process of

production from sourcing and testing to packaging.

Technology for next 100 yearsTechnology for safety, performance, and comfort.


22 23Advantages

ManufactureCraftsmanship in outdoor product

We are proud to invest in Korean workers with a high-quality labor force, unique

modular teams that are continually challenged to offer creative alternatives to foreign

competition, and the confidence to be different, we are able to survive and thrive, and

take a leadership position in an industry that has sent most of its production overseas.

We plan to continue to increase the volume of “made in Korea” product to better serve

our customers.

Experienced craftsmanship of Korean workers is a very critical factor in outdoor product,

on which mountaineers’ life is relied. Based on the high-quality, our reputation for quality

and technology enables us to provide professional outfit for President Guard Regiment,

Special Force of Police, and Korea National Park Service.

Made in KoreaCraftsmanship in outdoor product

Our Factory in Korea (4,000 )


Fashion is an industry on the move and we are keeping pace. With the new

establishment of state-of-the art warehouse and distribution centers, we expect

the reliable flow of goods, just-in-time distribution and comprehensive value-added

services at all times. This means that we have everything we need to access new sales

opportunity to further the success of our business. Once the warehouse starts operating,

stores can be individually supplied just-in-time, express deliveries can be included,

shop-to-shop consignments organized and returns processed.

This smooth, tailor-made system is managed using special IT systems, allowing absolute

transparency in terms of the flow of goods. Based on the investment in infrastructure

facilities, we will go further to be the global leading outdoor brands for years to come.

24 25Advantages

LogisticsLeader in Logistics and RetailInfrastructure facilities are another growth engine.

Gonjiam Distribution CenterGonjiam Distributioin Center, approximately 10,000 , was established in

1997 to handle all the logistics operation to deliver the product within 24

hour. This center was one of the first warehouse among outdoor brands in

Korea at that time.

Yangji Distribution CenterYangji Distribution Center, which is scheduled to open in 2012, is the biggest

logistics facility among national outdoor brands. This new 30,000 5-story

center with state-of-the art management system is three times larger than

Gonjiam Distribution Center. Yangji Center is also equipped with dining hall

and fitness center for employees including dormitory. Once established, it is

expected that up to 20,000 pieces of items can be processed to delivered

within 24 hours with the automatic sorting and delivery order management

system.

26 27Brand & Products

B R A N DPRODUCT

T H E K O R E A L E A D I N G O U R D O O R

Powerful outdoor company in Korean outdoor market to become the world-class company

Since its beginning,

BLAKCYAK & Dongjin Leisure continue to grow as one of the leading outdoor brands

in Korea with the brand portfolio of BLACKYAK, mountia, and karrimor.

We take great care of ensuring that we provide a wide range of quality products

for Mt. Everest expedition as well as day hikers, so customers love our product

and enjoy outdoor life. We have promoted new outdoor culture to help customers

in the world engage in nature as a Korean outdoor company.

Through innovation and design fed by research and insight,

each of our brands is succeeding in redefining

and re-engineering its category and strengthening relationship

with consumers around the world to be the leading outdoor company.

BLACKYAK, established in 1973 as ‘Dongjin Mountain’, is acknowledged as a brand that manufactures top-notch quality mountain

clothing and equipment in outdoor market by self-developed technology. BLACKYAK is well recognized by professional mountaineers

as high quality technical outdoor gear. BLACKYAK aggressively invests in R&D to develop new technology and material as well as

cooperates with global companies for licensing opportunities to provide innovative quality products for our customers.

BLACKYAK’S technology and quality haven’t gone unrecognized, as evidenced by the number of commendations and awards bestowed

upon the company in recent years including Korea Ministry of Environment, Culture and Tourism, and Knowledge-Economics. This leads

us to execute government-supported research project specialized in textile research.

Based on advanced technology and R&D, we will aggressively expand our business territory to compete with foreign outdoor brands. We

have finished trademark registration process in America, Japan, and China including Hong Kong.

Establishment of international sales network is already in the process together with applying for trademark registration in Russia,

Uzbekistan, Canada, and Australia. Today, we walk another step to become worldwide outdoor company loved by outdoor enthusiast.

| BLACKYAK |


mountia comes from the combination of mountain and utopia, which means mountain

can be an utopia for everyone. mountia was launched in 2002 to offer a comprehensive

range of outdoor clothing and equipment at great value for money from friendly,

knowledgeable staff. mountia has a broad customer base and is targeted to appeal

across the spectrum, from expedition team to everyday hikers. mountia stores are

typically in secondary high street locations with LotteMart, Homeplus, and road shops.

mountia provides a wide range of products that are suitable for everyday life outdoors

as well as for those serious outdoor adventures. The principal products sold by

mountia can be categorized into four categories ; outdoor clothing, outdoor equipment,

footwear, and lifestyle clothing. mountia is well positioned to offer high quality technical

product with innovative design and look. Our business history and record since 1973

guarantees the successful brand management with retail expansion in the future

supported by strategic long-term plan to be the most desirable outdoor brand in Korea.

karrimor is a world-renowned, premium outdoor brand.

Our heritage and expertise in designing and manufacturing outdoor wear and

equipment has been applied to a variety of leisurely and extreme outdoor pastimes.

karrimor apparel technology is the most advanced and trusted in the world. karrimor

continues to evolve and has become a diverse, multi-faceted brand that enhances the

outdoor experience for both recreational and professional users.

The karrimor brand has come a long way since 1946, when it began in the upstairs

of a shop in Lancashire, producing cycle bags. Before the end of the ‘50s, we’d

trademarked weathertite and pioneered the climbing rucksack with two of the era’s

most eminent climbers – and just over a decade later in 1972, we were credited with

inventing the best, most famous alpine sac in the world. Since then, the technical

expertise that’s informed every karrimor product has made us the choice of some of

the world’s most famous and successful outdoor adventurers. It’s this background that

gives us our enviable reputation and reach across both the specialist and retail sectors.

| mountia |

| karrimor |

ProductPr ide o f Le isure Spor ts

JACKETS

UNDERWEAR

VESTS

TENTS

SOCKS

T-SHIRTS

STICKS

MOUNTAIN BOOTS

SLEEPING BAGS

BACKPACKS

CAPS

ACCESSORIES

GLOVES

PANTS


“For mountaineers by mountaineers”

We, mountaineers, produce the apparel

and equipment for mountaineers

with the full understanding of what

they need. This is why our products

are recognized by professional

mountaineers around the world. We

provide a wide range of products that

are suitable for everyday life outdoors

as well as for those serious outdoor

adventures.

FAMILYPARTNER

Share together

Dream together

Walk together

Together, we can go further.

Together, we can climb higher with our partners.

Together, we walk faster and easier.

32 33Family Partnership

SHIP

34 35Family Partnership

We have been in partnership with suppliers and franchisees

like a family. Strong partnership enables us to be the leading

outdoor company. We will foster the current relationship with

our suppliers and franchisees to grow as world class outdoor

brands with high-quality technology products. We have a firm

belief that the key to our future success lies in building a win-

win relationship with our partners.

Dept. store 60, Street store 180

With partners and franchisees, we are all family.

LotteMart 60, Homeplus 55, Street store 30

Emart 65, Street store 5

Expand

36 37Expand into the Global Market

into the Global Market

We aggressively invest in R&D to develop new

technology and material as well as cooperate

with global companies for licensing opportunities

to provide innovative quality products for our

customers.

Based on advanced technology and R&D, we

will aggressively expand our business territory

to compete with foreign outdoor brands. We

have finished trademark registration process in

America, Japan, and China including Hong Kong.

Establishment of international sales network is

already in the process together with applying

for trademark registration in Russia, Uzbekistan,

Canada, and Australia. Today, we walk another

step to become worldwide outdoor company loved

by outdoor enthusiast.

Jump to the worldJump to the future

GlobalExpansion*

FRANCE

UZBEKISTANMONGOLIA

RUSSIA

CHINANEPAL

CHINA

VIETNAM

(Beijing)(Kathmandu)

(Shanghai)

(Hanoi)

INDIAMYANMAR

SINGAPORE

HONGKONG

Y 2012

Y 2018

Y 2014

Y 2013

Y 2012

Y 2012Y 1998

Y 2011Y 2011

Y 2011

Y 2016

Y 2015

38 39Global Expansion

AMERICA

Y 2012

First among Korean outdoor companies, we established China office and opened first store in Beijing in 1998. Since then, BLACKYAK has become one of the best-selling outdoor brands in China, and recognized as one of the most popular outdoor brands.

Dept. store : 18Street store : 180

China Dream!The first Korean company to successfully expand into China market.

To be the leading global outdoor brands in 2013, we will explore global market such as Europe,

Americas, and Central Asia, which will be outdoor silk road for us.

Silk road of BLACKYAK

40 41Tomorrow VISION

Outdoor craftsmanship and global leading outdoor company

Growth Engine

The best people, the best product, and the best

brand.

We work harder to best serve our customer

We work harder to be the role model of following

competitors.

We work harder to become the global leading

outdoor company to provide high-quality product

for our customer to feel happiness in the great

outdoors.

We grow everyday by focusing on design and marketing of technical outdoor product.

Vision

forTomorrow

Trust

Talent Role model

Best

Future VISIONTomorrow

US$ 120M

20082007 2009 2010 2011 2012 2013 2014 2015

US$ 180M

US$ 250MUS$ 340M

US$ 460MUS$ 600M

(E)

US$ 750M

(E)

US$ 850M

(E)

US$ 1B

(E)

42 43Dream Support

The dream of customer is the dream of us.

As the world become more ethically aware,

companies are required to be more responsible.

We strive to be ethically responsible company

by supporting communities and corporate social

responsibility activities. We are responsible

for promoting outdoor culture, healthy life and

supporting for the poor and planet.

We are executing new corporate social

responsibility programs by organizing various

campaigns including free mountaineering program,

climbing competition sponsorship, and Korean Boy

Scout sponsorship. We will help every customer

live healthier life through various outdoor activities

from weekend hiking to Mt. Everest expedition.

SocialContribution Program

- International Bouldering Championship- Superintendent Cup Youth Sports Climbing Competition- Mt.Samgak Mountaineering Festival- Seoul Mayor Cup Climbing Competition

Sports Event

- Sponsorship of Korean Alpine School- Sponsorship of Korea Pediatric Cancer Foundation- Sponsorship of Dokdo Island Academy- Education of outdoor culture through BLACKYAK Climbing School

Supporting and Education

- Cho Oyu(8,201M) / Shisha Pangma(8,027M) Expedition Team 1993.8.12~12.5 Um Hong-gil, Kang Tae-sun, Hong Young-gil, Min Kyung-tae and 9 member (9.11 Ascent of summit)- Nanga Parbat Expedition Team 1992.5.26~8.1 Kim Byung-jun, Jang Bong-wan, Seo Sung-sik, Um Hong-gil and 9 member - Annapurna(8,091M)/Kangchenjunga(8,586M) Expedition Team” 1997.2.25~6.5. Um Hong-gil, Kang Tae-sun and 5 member- BLACKYAK-Seoul/ Tibet Joint Everest(8,850M) Expedition Team” Mt. Everest(8,850m) 2003.5.21~22- Oh Eun-sun succeed in reaching ‘14 summits of 8000m’ ; Makalu, Lhotse, Broad Peak, Manaslu, Kangchenjunga, Dhaulagiri I, Nanga Parbat, Gasherbrum I, Annapurna 2005.2~2010.5

Expedition Team Sponsorship

- Collecting old cell phone campaign (Awarded by Korea Ministry of Environment)- Donation of wastebasket in the Great Wall of China- Planting trees in North Korea

Environment

Membership program with discount and point benefit

BLACKYAK and Dongjin leisure provide quick and easy customer service for repair, maintenance, and delivery.

Green Card Service

Customer Satisfaction

44 45Dream Support

Customer Satisfaction Program

- Dokdo Island Visiting - Mt.Everest Trekking- Mt.Halla Trekking (Jeju)

Customer Invitation Program

Gasherbrum II (8,035m) (Jul 17 1997)

Everest(8,848m)(May 20 2004)

Shishapangma(8,027m)(Oct 3 2006)

Cho Oyu(8,201m)(May 8 2007)

K2(8,611m)(Jul 20 2007) Makalu(8,463m)

(May 13 2008)

Lhotse(8,516m)(May 26 2008)

Dream Come True

Documents

BLACKYAK