Hot Issue

Achieved record-high operating performance in

- KRW 2.32 trillion in sales and KRW 463.3 billion in operating income

- Record-high rental sales of 1.41 million units

- Plan to realize KRW 2.56 trillion in sales and KRW 499.0 billion in operating income in 2016

IR WEBZINE2016. February

Market ReviewStock Market

The KOSPI rose by 0.24% from the previous month to 1,916.66 points at the end of February 2016, getting over a

prolonged bearish trend. In the aspect of technical analysis, it shows a positive signal by dramatically overcoming the

collapse in early February and turning back short- and mid-term moving average lines. Meanwhile, sluggish trading

volume means that investors are still suspicious about the future stock market.

The collapse in early February was mainly attributable to susceptible response to global issues such as increasing

concerns about credit crunch of EU financial industry, fluctuation of raw materials prices, and foreign currency

volatility. Since then, the situation was reversed. A dramatic turnaround and rally occurred thanks to favorable issues

such as the possibility of mitigating interest rate increase pace in the US due to sluggish global economy, China's

interest rate reduction, EU's quantitative easing to protect the Brexit.

In March 2016, the KOSPI seems to maintain a slight rise backed by economic policy collaboration of major countries.

Concerns about the fluctuation of raw materials prices including crude oil is being relived and depreciation of Korean

Won also has positive effects on the domestic businesses. However, unsatisfied trading volume is likely to stick to the

KOSPI.

IR WEBZINE2016. February

Market ReviewStock Price

The stock price of Coway ended at KRW 97,500, equal to the previous month, at the end of February.

Coway, which is leading the rental business, is striving to expand new sales channels such as duty free shops and online shops with the strategy of pursuing premium brands and services in the domestic market. The company is also strengthening the ODM partnership in China and expanding its Malaysian and US subsidiaries. These efforts target the maximization of sales growth and profitability. Coway achieved record-high annual sales and operating profit in 2015. Moreover, it demonstrates the best brand power and cash creation ability in the stably growing environmental home appliance market.

During February, the number of shares held by foreigners increased 179,601 shares, or 0.4%, compared with the prior month. As of the end of February, they maintained 52.98% ownership. Domestic institutional investors marked net selling of 131,237 shares during the same period.

Classification% change of COWAY %change of

KOSPI%change of

KOSPI200Stock Price vs. KOSPI vs. KOSPI200

5 Days -0.81 -0.83 -0.68 0.02 -0.14

20 Days 4.28 3.29 2.69 0.99 1.59

60 Days 13.64 19.17 19.43 -5.54 -5.80

IR WEBZINE2016. February

0.00%

40,862,188 shares

(as of February. 29, 2016)

Changes in Stock Price in February

Changes in Shares Held by Foreigners in February

Net Changes in Shares Held by Institutional Investors in February

+179,601Shares(+0.4%)

-131,237Shares

Market ReviewStock Price

• Strong Buy

• Buy

• Hold

• Underperform

• Sell

0

6

0

0

0

Average Ratings Average Target Price = \126,166

Sell StrongBuy Low :\110,000

High :\140,000

2016-02-18 | Hyundai Securities | Target Price : 110,000 | BUY

4Q15 Earnings Review4Q15 consolidated OR and OP increased 16.3%YoY and 57.3%YoY, respectively, greatly exceeding market consensus. Robust growth continued at the wellness home appliance division due to the high …

FULL REPORT VIEW

2016-02-18 | NH Investment & Securities | Target Price : 125,000 | BUY

Despite uneasy macro environment solid ...On a non-consolidated basis, Coway announced 4Q15 sales of W582.1bn (up 17% y-y) and operating profit of W126.8bn (up 36% y-y), with both figures surpassing our estimates and consensus. Of note …

FULL REPORT VIEW

2016-02-18 | Korea Investment & Securities | Target Price : 117,000 | BUY

Earnings and dividend matter more than growth ... Coway reported 4Q15 sales of W631.3bn, up 16% YoY, and OP of W128.6bn, jumping 57% YoY. The OPM rose to 20.4%, up 5.3%p YoY (up ~4%p if removing one-off costs in 4Q14) …

FULL REPORT VIEW

2016-02-18 | KDB Daewoo Securities | Target Price : 140,000 | BUY

Still flawless even amid tough conditions ...For 4Q15, Coway reported preliminary consolidated revenue of W631.3bn (+16.3% YoY), operating profit of W128.6bn (+57.4% YoY), and OP margin of 20.4%. Earnings surprised to the upside …

FULL REPORT VIEW

2016-02-18 | Shinhan Investment Corp | Target Price : 130,000 | BUY

Overseas growth momentum expected in 2016 ...Coway posted K-IFRS standalone sales of W582.1bn (+16.5% YoY) and operating profit of W126.8bn (+36.1% YoY). Rental account sales came in at W378.8bn (+6.2% YoY), lump-sum …

FULL REPORT VIEW

IR WEBZINE2016. February

Market ReviewStock Price

IR WEBZINE2016. February

2016-02-17 | Samsung Securities | Target Price : 135,000 | BUY

Robust 4Q performance eases concernsCoway yesterday reported that its 4Q sales and operating profit rose a much-better-than forecast 16% and 57%, respectively, on y-y operating margin growth of 5.3%pts to 20.4%. We attribute the solid …

FULL REPORT VIEW

Coway News

Held an event to enhance communication with customers

Coway implemented an event called “Goway With Coway Romantic Literature

Tour” in Chuncheon, Gangwon-do, on February 27 by inviting W_class

customers.

As part of vitalizing communication with customers, Coway has been operating a

customer loyalty program “W_class” since 2009. This program consists of benefits

to care Me, Us, and the World. The event was prepared to care Me under the

concept of “Goway With Coway” and the theme of “Artroad.”

W_class customers and literary critics visited villages which had been background

for novelists Kim Yoo-jung and Hwang Soon-won’s works to feel and learn their

thinking and sensitivity. This program appealed much to participants.

Bang Ji-hye, a participant, said, “This program gave me a good chance for mental

healing by taking a break from daily routine and seeking the real meaning of their

novels.”

Lee Seung-cheol, head of Customer Strategy Team, said, “W_class is a program

to care customers’ life beyond just a service. We will spare no effort to maximize

customer value through operating programs dedicated to our customers.”

IR WEBZINE2016. February

Coway News

Coway's bidet obtained the environmental mark certification.

- Seven products have obtained the certification as of 2016.

Coway announced on February 23 that its self-sterilizing bidet (BAS16-B)

obtained the environmental mark certification. As a result, the number of

products with the environmental mark certification has expanded to seven until

now.

The environmental mark certification was introduced by the Korea Environmental

Industry & Technology Institute under the Ministry of Environment in 1992. It

aims not only to offer information on environmental products to consumers by

labeling the 'environmental mark' in regard to environmental impact, resource

use, and energy consumption but also to encourage businesses to develop and

manufacture environmental products that meet consumer needs.

Coway's self-sterilizing bidet demonstrates excellent power-saving performance

by adopting self-developed "Green Plug" technology. This technology helps users

save power up to 40% compared with existing bidets without power-saving

function by automatically control the operation time of bidet based on the

analysis of 14-day usage patterns. In addition, users are able to sterilize the bidet

in 15 seconds by simply touching a button.

Coway plans to make its products including the clinic bidets (BASH21-A and

BA20-B) and dual power air purifier IoCare (AP-1515D) obtain the environmental

mark certification gradually.

Kwang-sik Shin, head of Environmental Quality Research Center, said, "The

obtainment proved our advanced environmental technology once again. We will

continue to develop and supply products with higher environmental value to set

a good example for green management."

IR WEBZINE2016. February

Coway News

Participate in the Baby Fair

Coway participates in the 29th Baby Fair held in KOEX from February 18 to 21,

2016. At the fair, Coway exhibits a total of 23 products including water purifier,

air purifier, and water softener which have become essential items for children

and enfant.

Particular, the company provides special benefits such as free registration and

discount on rental fee to buyers of nine designated products including

Hanppyum water purifier.

In addition, Coway holds diverse events for visitors: "Water Comma Time

Campaign Experience Zone," "Free Air Quality Diagnosis," and others such as free

coffee tasting made by sparkling water purifier and barista water purifier.

First held in 2000, the Baby Fair is Korea's largest childcare exhibition prepared to

offer information on pregnancy, childbirth, and childcare. More than 150

companies at home and abroad participate in the fair this year.

IR WEBZINE2016. February

Coway News

Achieved record-high operating performance in

- KRW 2.32 trillion in sales and KRW 463.3 billion in operating income - Record-high rental sales of 1.41 million units- Plan to realize KRW 2.56 trillion in sales and KRW 499.0 billion in operating income in 2016

Coway attained all-time high operating performances in its history since the foundation in 1989 by realizing sales of KRW

2.32 trillion, up 7.2% year-on-year, and operating income of KRW 463.3 billion, up 27.1%, on a K-IFRS consolidated base

in 2015.

In the fourth quarter of 2015, sales and operating income reached KRW 631.3 billion and KRW 128.6 billion, respectively.

The figures showed increases of 16.3% and 57.4% year-on-year, respectively.

These remarkable performances came mainly from all-time high rental sales, net increase of rental accounts led by stable

cancellation rate control, sales increase in homecare business, and growth of overseas subsidiaries.

▲ All-time high rental sales

Rental sales in 2015 increased 5.9% year-on-year to 1.41 million units backed by launching new premium products such

as the dual-power air purifier IoCare and sparkling ice water purifier. Total accumulated rental accounts also increased

2.8% to 5.77 million at the end of 2015.

▲ Net increase of rental accounts led by stable cancellation rate control

The monthly average cancellation rate of rental products has maintained around 1% due to the improvement of product

quality and service capability. Stably managed cancellation rate attributed to net increase of rental accounts by 232

thousand year-on-year.

▲ Sales increase in homecare business

Sales of Coway's homecare service business soared 95.4% from the previous year to KRW 120.8 billion in 2015. This

progress resulted mainly from launch of new products and efficient operation of the service specialist group. The number

of homecare service accounts also rose by 21.1% year-on-year to 265 thousand.

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IR WEBZINE2016. February

Coway News

▲ Growth of overseas subsidiaries

Malaysian subsidiary realized KRW 97.8 billion, up 16.7% year-on-year, in sales, and the number of accounts reached 272

thousand. US subsidiary also saw an increase of 30% from the previous year to KRW 57.2 billion in sales.

▣ Business Plan in 2016

Coway announced that it would take a new leap by focusing on business competitiveness in 2016.

IR WEBZINE2016. February

IR Activities

EVENT

DATE

LOCATION

NOTE

IR Conference_Earning Release for 4Q 2015

2016–02-17

Korea Exchange, Seoul

-

EVENT

DATE

LOCATION

NOTE

Overseas Conference

2016–02-22 ~ 02-24

HongKong,Singgapore

Samsung Securities

EVENT

DATE

LOCATION

NOTE

Domestic NDR

2016-02-25 ~ 02-26

Domestic institutional investors

KTB Investment & Securities Co., Ltd.

IR WEBZINE2016. February