Hot Issue

Won the "New Technology Innovation Award" for 14 consecutive years

IR WEBZINE2016. June

Acquired the "Best Grade" in the Shared Growth Index for three consecutive years

New Product

Launched a new air purifier model AP-1516D

- 3-step circulation function and customized air care system

- Customized filters to seasonal, situational, and spatial air conditions and allergen filter for pets

- Displaying 4-step indoor air quality status on the front of product

IR WEBZINE2016. June

New Product

Launched three kinds of hybrid mattresses

- Ensuring optimal sleep environment through "dual layer memory form topper" and "advanced 7

zone spring system

- Free change of topper and choice of hardness in product rental

- Providing 7-step mattress care service and care guard exchange service during rental term

IR WEBZINE2016. June

Market ReviewStock Market

The KOSPI closed flat at 1,970.35 points, down 0.66% from the previous month, in June, staying in a box pattern since a rally in this March. In the aspect of technical analysis, the KOSPI has been tangled with short-, mid-, and long-term moving average lines, which tells about equivocal status of the future KOSPI. In addition, market volatility is extended due to external impacts and the high points are lowered, which shrivels investment sentiment.

In June, the KOSPI surpassed the previous high point early in June thanks to a reduction of benchmark interest rate by the Bank of Korea, freezing of the US benchmark interest rate, and expectations on favorable operating performances of major companies. However, Brexit turmoil in late June brought about the extension of volatility to the stock market and preference to safe assets was further strengthened. Meanwhile, rapid recovery of the global stock markets offset the uncertainty in a short time. In June, pharmaceuticals, electricity & electronics, and manufacturing sectors were strong while insurance, textile & clothing, and food & beverage sectors were weak relatively.

In July 2016, as a global challenge was overcome to a certain extent, it is expected that 2Q earnings release of major companies will significantly affect the domestic stock market. Another favorite news include global central banks' distinct direction to quantitative easing. These factors seem to unleash the attempt to retake 2,000 points.

IR WEBZINE2016. June

Market ReviewStock Price

The stock price of Coway has taken an upturn for three consecutive months by being closed at KRW 104,500, an increase of 1.46% from the previous month, at the end of June. Despite a technical decline early in June, it made an attempt to make a rally with rising mid- and long-term moving average lines as bedrocks. Moreover, Continued purchasing of foreign investors since February have propped up the stock price.

Coway's quarterly operating performances have been improving stably backed by the increase of rental accounts and growth potential of its overseas business is also enhanced, which have a favorable influence on the stock price trend. In particular, the Company signed an MOU for water purifier business in China with a world-class white home appliances brand Haier in June. More detailed business plans will be materialized in the second half of this year. When creating synergy between Haier's vast sales channels in China and Coway's technological power, the stock price is expected to reflect greater value in the future.

During June, the number of shares held by foreigners increased 123,395 shares, or 0.3%, compared with the prior month. As of the end of June, they maintained 53.99% ownership. Domestic institutional investors marked net selling of 69,472 shares during the same period.

Classification% change of COWAY %change of

KOSPI%change of

KOSPI200Stock Price vs. KOSPI vs. KOSPI200

5 Days 0.48 1.30 1.36 -0.82 -0.88

20 Days -4.13 -3.50 -4.36 -0.62 0.23

60 Days 10.82 10.98 10.08 -0.16 0.73

IR WEBZINE2016. June

41,641,258 shares

(53.99%)

(as of June. 30, 2016)

Changes in Stock Price in June

Changes in Shares Held by Foreigners in June

Net Changes in Shares Held by Institutional Investors in June

+123,395Shares(+0.3%)

-69,472Shares+1.48%

Market ReviewStock Price

• Strong Buy

• Buy

• Hold

• Underperform

• Sell

0

2

0

0

0

Average Ratings Average Target Price = \128,000

Sell StrongBuy Low :\121,000

High :\135,000

2016-06-27 | Samsung Securities | Target Price : 135,000 | BUY

A solid investment amid macro instability ...Market interest in Coway is likely to rise, because the stock is a good alternative investment that should provide relative stability amidst the sharp deterioration in investment sentiment that has come …

FULL REPORT VIEW

2016-06-01 | Mirae Asset Securities | Target Price : 121,000 | BUY

Good start to China water-purifier market ...According to local press reports, Coway has signed an MOU with Chinese appliance maker Haier Group (unlisted), in order to enter the Chinese water purifier market on 26 May. …

FULL REPORT VIEW

IR WEBZINE2016. June

Coway News

Acquired the "Best Grade" in the Shared Growth Index for three consecutive years

Coway acquired the "Best Grade" for three consecutive years and was selected as the best honorary company at the "2015 Shared Growth Index Assessment" released by the National Commission for Corporate Partnership on June 30.

The Shared Growth Index Assessment is conducted every year by the National Commission for Corporate Partnership and the grades are categorized in best, excellent, good, and normal. A total of 133 companies were evaluated this year, 25 companies of which acquired the best grade, and followed by 41 companies with the excellent grade, 46 companies with the good grade, and 21 companies with the normal grade. In particular, just six companies - Coway, Samsung Electronics, SK global chemical, SK telecom, Kia Motor Company, and Hyundai Motor Company - were selected as the best honorary company that had acquired the best grade for three or more consecutive years.

The acquisition of the best grade was mainly attributable to Coway's efforts to establish the culture of fair trade, enhance communication with suppliers, support suppliers' competence enhancement, implement shared growth programs, and encourage the co-prosperity between 1st and 2nd-tier suppliers.

The "Co-prosperity Partnership Center" that Coway established in Bucheon, Gyeonggi-do in April 2014 has played a key role for communication with regard to suppliers' HR development and technology and innovation activities. The Company also opened the Next Generation CEO MBA course for suppliers last year. The "Self-sufficiency Technology Research Society" supports suppliers to exchange their technologies and improve product quality.

In addition, Coway has raised the co-prosperity fund worth KRW 20 billion with the purpose of helping suppliers stiffen their competitiveness.

Young-Jin Choi, the head of SCM Division, said, "We were accepted as the best honorary company in shared growth in recognition of our consistent efforts for coexistence and cooperation with suppliers and cultivation of talents. With the belief that suppliers' competitiveness determines our future, we will spare no effort to expand practical investments in and supports for them."

IR WEBZINE2016. June

Coway News

Won the "New Technology Innovation Award" for 14 consecutive years

Coway won the "New Technology Innovation Award" at the "2016 Korea Innovation Award" hosted by the Korea Standards Association, which was the 14th consecutive award.

The Korea Innovation Award aims to disseminate the value and excellence of innovation achievements by awarding companies which have realized innovation in technology, product, and service as well as management activities. Evaluation items are CEO's leadership, innovation, competitiveness, growth prospect, and customer satisfaction.

Coway's award-winning product is "My Hanppyeom Water Purifier IoCare (CHP-480L/CHP-481L).“

This product demonstrates its ultra slim size with only 18.5cm wide in spite of adopting the RO membrane filter system. The width size is approximately 36% smaller than existing products. It also has innovative functions such as self-sterilizing system, 3-step hot water supply system, individual water-drinking care system, automatic failure diagnosis system, and energy-saving system, which much appeal to consumers.

Seon-Yong Lee, the head of Environmental Technology Research Institutes, said, "The My Hanppyeom Water Purifier IoCare is highly recognized for its technological innovation by first adopting ultra slim size among water purifiers equipped with RO membrane filter system. We will continue to enhance our product competitiveness by capitalizing on our innovative technologies."

IR WEBZINE2016. June

Coway News

Coway's air purifier filter received a final confirmation on undetection of OIT ingredient

On June 21, Coway announced that its hepa filter for air purifiers received a final confirmation on undetection of OIT (Octylisothiazolinone) from an external analysis institute with regard to press releases that OIT was detected in the air purifier filter.

Coway disclosed on June 16 that the company had carried out the OIT detection test on air purifier hepa filters and there was no OIT detection. To secure assurance, Coway commissioned the Gongju University Drug Abuse Research Center for the OIT detection test. As a result, OIT was not detected.

In addition, Coway said "We use antimicrobial to enhance the function of air purifier hepa filters. However, ingredients of antimicrobial we use is different from those that OIT was detected." Coway uses naturally extracted antimicrobial for air purifier hepa filters. These tests prove that the OIT detection issue is irrelevant to antimicrobial which is used for Coway'sair purifier hepa filters.

IR WEBZINE2016. June

Coway News

Participated in the world's largest water business fair "AQUATECH CHINA"

- Displayed 24 products in five categories including water purifier and air purifier- Promoted innovative technologies through premium water purifiers

Coway participated in the "AQUATECH CHINA" held in Shanghai, China from June 15 to 17. The AQUATECH CHINA is the world's largest annual water business fair. This year, more than 1,400 companies attended the fair.

At the fair, Coway displayed water purifier filter technology with the concept of "Global No.1 in Water Purifier" in order to target and preoccupy the environmental home appliance market in China.

A total of 24 products in five categories including water purifier, air purifier, and bidet were displayed at the fair. In particular, premium water purifier lineups such as "Barista Ice Water Purifier (CHPCI-430N)" and "Sparkling Ice Water Purifier (CPSI-370N)" played a key role for demonstrating its technological prowess.

The most highlighted high-end product "Sparkling Ice Water Purifier" provides users with transparent ice as well as purified, cool, and carbonated water. In addition, nano trap filter system eliminates harmful viruses very effectively and 3-step carbonate concentration control function allows users to create carbonated water tailored to their taste.

Yong-Seong Kim, the head of Overseas Business HQ, said, "Globally increasing interest in environment will let our products and technologies arrest more public attention. By capitalizing on our top-tier technologies and product competitiveness, we will give impetus to our global business."

IR WEBZINE2016. June

Coway News

Launched three kinds of hybrid mattresses

- Ensuring optimal sleep environment through "dual layer memory form topper" and "advanced 7 zone spring system

- Free change of topper and choice of hardness in product rental- Providing 7-step mattress care service and care guard exchange service during rental term

Coway launched three kinds of hybrid mattresses (CMK-PR01, CMQ-PR01, CMSS-PR01) that the advantages of memory form and spring are combined.

The hybrid mattresses equipped with dual layer high-density MDI (methylene diphenyl diisocyanate) memory form topper provide users with comfortable sleep environment.

In particular, these products were designed to effectively diffuse users' body pressure and support body stably by adopting the "Advanced 7 Zone Spring System" which arranges two types of independent springs with different elasticity in 7 areas according to body pressure.

All rental customers of these products are able to receive free change service of topper every three years and also choose the hardness of topper (soft and medium levels).

Moreover, the Homecare Doctor, hygiene expert group of Coway, visits rental customers every four months to provide 7-step mattress care service and care guard exchange service.

Yong-Joo Park, the head of Marketing HQ, said, "These are high quality mattresses that satisfy both natural function of mattress and comfort. We believe these products will ensure taking the quality of sleep to the next level."

IR WEBZINE2016. June

Coway News

Launched a new air purifier model AP-1516D

- 3-step circulation function and customized air care system- Customized filters to seasonal, situational, and spatial air conditions and allergen filter for pets- Displaying 4-step indoor air quality status on the front of product

Coway launched a new air purifier model AP-1516D that cares indoor air quality with its 3-step circulation function - multi circulation, intensive circulation, and general circulation. It also boasts a customized filter system, enabling methodical indoor air quality control.

Unlike existing air purifiers with upper air outlet, this product supplies purified air through upper and front-side outlets, ensuring more rapid and extended air purification.

Multi circulation function which supplies purified air through upper and front-side outlets simultaneously is helpful for rapid and wide air purification. Intensive and general circulation function supplies purified air through front-side outlet and upper outlet, respectively. In addition, the "Rapid Care Mode" operates multi, intensive, and general circulation in sequential order, which is helpful when rapid air purification is required due to fine dust or yellow sands, or when users need for rapid air purification after returning home.

This product has a filter system consisting of microfiber free filter, customized filter, deodorization filter, and antivirus hepa filter. In particular, it adopts allergen-tailored filter specified for pets as well as filters customized to yellow sand and sick house syndrome of existing products, which ensures air quality control tailored to seasonal, situational, and spatial needs.

The 4-step LED lamps on the front of the product make it possible for users to easily check the level of indoor air pollution. And slim and tower-type product design maximizes the space efficiency and luxury and sophisticated white color elevates the value of interior design.

IR WEBZINE2016. June

Coway News

Coway's Environmental Technology Research Institute was selected as the best accreditation agency.

- Won the Minister Citation from the Ministry of Trade, Industry and Energy - Designated as an international accreditation agency from KOLAS in 2002

Coway's Environmental Technology Research Institute won the Minister Citation from the Ministry of Trade, Industry and Energy by being selected as the best KOLAS accreditation agency in the conformity assessment hosted by the Korean Agency for Technology and Standards in commemoration of the "2016 World's Accreditation Day.“

The "World's Accreditation Day" (June 6) has been observed since 2008 in order to inform the importance of accreditation in the global export, which is led by the International Laboratory Accreditation Conference (ILAC) and International Accreditation Forum (IAF).

Coway's Environmental Technology Research Institute was designated as an international accreditation agency from KOLAS in 2002. It has engaged in water test analysis and inspections on product performance and safety and demonstrates the largest research staff and test facilities in the industry. Until now, more than 200 thousand international accreditation certificates have been launched.

Furthermore, the Environmental Technology Research Institute had been designated as the "Drinking Water Testing Lab (8th)" by the Ministry of Environment in 1996, followed by the selection as the authorized RoHS testing lab from EU in 2007 and the authorized WQA-RTL testing lab from WQA in 2008.

Seon-Yong Lee, the head of Environmental Technology Research Institutes, said, "The role of international accreditation becomes bigger as environmental and occupational regulations are tightened. In response, Coway's Environmental Technology Research Institute will continue to strengthen its professionalism and competitiveness to become a top-notch international accreditation agency."

IR WEBZINE2016. June