Market ReviewStock Market

The KOSPI increased 2.17% from the previous month to 2,026.46 points at the end of December 2016, making a

meaningful progress. In the technical aspect, it broke through mid and long-term moving average lines at a gulp with

the increase of trading volume, shaping a well-ordered status and drawing expectations on additional growth.

The domestic stock market started with anticipation and uneasiness in December. However, the recovery of

investment sentiment from the upturn of international oil prices and the ECB's decision on extending its quantitative

easing policy unleashed a rally of global stock markets, resulting in resilient rise of the KOSPI. Moreover, there was a

positive evaluation that unfavorable factors such as interest rate increase of the US and the domestic political risk

from the impeachment would have little effect on the stock market as those were dealt with for a long time.

In January 2017, foreign conditions will not be so favorable because the US stock market seems to show time-

consuming adjustment due to an excessive rally and the uncertainty of the US interest rate increase resides in the first

quarter. Meanwhile, internally, many professionals expect that foreign investors will continue their stance on stock

purchasing backed by promising operating performances of leading companies. Therefore, it is projected that

January will become a period for accumulating energy for the next leap.

IR WEBZINE2016. December

Market ReviewStock Price

The stock price of Coway rose by 4.50% from the previous month to KRW 88,300 at the end of December 2016.

Coway has continued its unwavering investor-friendly policy by conducting the retirement of treasury shares amounting to approximately two percentage of total number of issued shares in September and December. In addition, the company's flagship rental business has been normalizing in a swift manner and the growth of overseas business is being accelerated, which leads to the recovery of its fundamental corporate value.

During December, the number of shares held by foreigners decreased 295,604 shares, or 0.7%, compared with the prior month. As of the end of December, they maintained 53.30% ownership. Domestic institutional investors marked net purchasing of 328,042 shares during the same period.

Classification% change of COWAY %change of

KOSPI%change of

KOSPI200Stock Price vs. KOSPI vs. KOSPI200

5 Days -0.90 -0.44 -0.15 -0.46 -0.75

20 Days 3.40 1.24 1.22 2.15 2.17

60 Days -8.21 -6.33 -7.72 -1.88 -0.49

IR WEBZINE2016. December

40,483,326 shares

(53.30%)

(as of December. 29, 2016)

Changes in Stock Price in December

Changes in Shares Held by Foreigners in December

Net Changes in Shares Held by Institutional Investors in December

-295,604Shares(-0.7%)

+328,042Shares

+4.50%

Market ReviewStock Price

• Strong Buy

• Buy

• Hold

• Underperform

• Sell

0

2

0

0

0

Average Ratings Average Target Price = \120,000

Sell StrongBuy Low :\115,000

High :\125,000

2016-12-12 | NH Investment & Securities | Target Price : 125,000 | BUY

Fundamentals set to improveCoway’s operating profit has been significantly harmed YTD by: 1) the recall of its water purifiers with built-in ice makers; and 2) lofty promotion expenses. But, with the booking of recall-related …

FULL REPORT VIEW

2016-12-05 | Samsung Securities | Target Price : 115,000 | BUY

Impressing both shareholders and customers ...Coway will cancel 771,749 treasury shares (or 1% of outstanding) and buy back KRW70b of shares (1.1% based on the current price). The move is the second such in less than three months, and we believe is …

FULL REPORT VIEW

IR WEBZINE2016. December

Coway News

Coway's corporate brand ad is on the air.

Coway's corporate brand ad titled "Coway Trust Campaign" is on the air from December 19.

The "Coway Trust Campaign" connotes the company's commitment to making customer trust the first priority in its whole business activities and fulfilling its responsibilities as a company engaged in water and air related business.

The ad was made under the theme "Coway's pledge to pursue real cleanness," expressing the process that natural water is delivered to people emotionally. It also faithfully connotes Coway's promise to provide customers with the cleanest and safest water.

The "Coway Trust Campaign" ad is on the air through public TV networks and cable channels.

Yong-joo Park, the head of Marketing HQ, said, "This ad was made with the aim of presenting our commitment to pursuing customer safety and trust. As Korea's representative water business player, we will continue to focuse on enhancing product quality, hygiene management, and service activities."

IR WEBZINE2016. December

Coway News

Participating in the 2017 CES to showcase our innovative technologies

Coway plans to participate in the "2017 CES (Consumer Electronics Show) to be held in Las Vegas from January 5 to 8 with the aim of showcasing its customer safety and care solutions that combine innovative products with services.

The CES, hosted by the CTA (Consumer Technology Association), is held every January and recognized as one of the world's largest consumer electronics shows together with MWC (Mobile World congress) and IFA (InternationaleFunkausstellung)

Coway's booth in the CES will be established under the concept of "Care Station, a space for care and ease where Coway Trust is realized.“

Coway will showcase cutting-edge IoCare products and care solution services aimed at customer safety which is created by combining big data based IoTtechnology into water purifier, air purifier, bidet, mattress, and cosmetics. Visitors are able to directly experience customer safety and care solutions.

Hae-sun Lee, the CEO of Coway, said, "We will present new trends in future consumer electronics by showcasing customer safety care solutions based on state-of-the-art information technology. Visitors to our booth will experience new values and respond to our innovative products and services magnificently.“

Prior to the show, Coway's IoCare water purifier, self-sterilizing water purifier Dual Ice, and IoCare Beauty had won the "2017 CES Innovation Award," demonstrating our innovative technologies.

IR WEBZINE2016. December

Coway News

Won the grand prize in the "Top 100 Great Companies to Work" for six consecutive years

Coway won the grand prize in the "Top 100 Great Companies to Work" hosted by GWP Korea for six consecutive years.

This award celebrates its 15th anniversary this year. It was prepared to select excellent companies in corporate culture through advanced evaluation standards which were adopted to globally recognized companies and to disseminate their best practices.

Coway has established pleasant and brighter working environment based on its differentiated corporate culture pursuing work-life balance, which was highly recognized in the evaluation.

The company has also been developing diverse corporate culture programs to become a great place to work - flexible lunch time system, family day campaign for work-life balance on every Wednesday, opening of healthcare room, operation of game room in the lounge, and so on.

In addition, Coway operates diverse programs to promote communication between organizations. For example, the "Coway Day" program is to invite employees' family members to the company to help all participants from new employees to the CEO be interactive and a bit informal. The "High-ting" program, started in 2007, provides employees with opportunities for having a nice day with themes such as fashion show experience, climbing, and sea fishing with their leaders.

Dae-gon Seo, the head of Corporate Culture Team, said, "Good corporate culture not only contributes to enhancing employees' creativity and job capability, but is foundational to corporate sustainable growth. We will continue to develop desirable corporate culture programs to make employees happy and pleasant."

IR WEBZINE2016. December

Coway News

Leading the safety of water purifier in collaboration with the Korea Consumer Agency

Coway established a consultative body in collaboration with the Korea Consumer Agency and 10 major water purifier manufactures with the aim of enhancing the quality of water purifier hygiene management system.

The launching ceremony was held at the Electronics Center located in Mapo-gu, Seoul, on December 15, in which Hae-sun Lee, the CEO of Coway, Sung-rak Son, head of Consumer Safety Center of KCA, and many executives of the domestic water purifier manufacturers participated.

The participants proclaimed the "Water Purifier Manufactures' Voluntary Safety Rule" for the enhancement of hygiene and service quality.

In addition, Hae-sun Lee, the CEO of Coway, pledged to strengthen water purifier hygiene management, product maintenance, monitoring process, regular after service, and customer satisfaction through active communication. He also said "We will continue to focus on product safety and recovery of customer trust."

IR WEBZINE2016. December

Coway News

Coway's nine products was awarded at the "PIN UP Design Awards."

Coway announced that its nine products including Dual-ice Water Purifier (CHPI-390L) and Air & Water Application were selected as prize winners at the "2016 PIN UP Design Awards" on December 14.

The "PIN UP Design Awards," hosted by the Korea Industrial Design Association, was prepared to disseminate the importance of product design and support the development of the domestic industrial design business. This award is considered three major design awards in Korea together with Korea Design Awards and Excellent Design Products.

The Best of Best award-winning Dual-ice Water Purifier in the consumer electronics category is an innovative product to offer general-sized ice and slim-sized ice at the same time and boasts emotional product design.

The Best of Best award-winning Air & Water Application in the interaction category analyzes customers' product usage patterns by capitalizing on information collected from IoT-based water purifier and air purifier and proposes customized lifestyle to them. The app was also highly recognized in that distinctive user interface and intuitive design help users easily understand information and experience effective tailored care services.

Il-soo Yeom, the head of Design Research Center, said, "Our product design puts customer convenience and new value at the top priority. We will continue to make a concerted effort to deliver better values and experiences to customers through differentiated product design."

IR WEBZINE2016. December

Coway News

Won the bronze prize at the "2016 DFA Award"

Coway's Air & Water Application won the bronze prize at the "2016 DFA (Design for Asia) Award" on December 8.

The DFA Award, celebrating its 14th anniversary, is hosted by the Hong Kong Design Center to share Asia's latest information and experiences with global designers. The award-winning Air & Water Application analyzes customers' product usage pattern by capitalizing on information collected from IoT-based water purifier and air purifier and proposes customized lifestyle to them.

The app was also highly recognized in that distinctive user interface and intuitive design help users easily understand information and experience effective tailored care services.

Il-soo Yeom, the head of Design Research Center, said, "Our product design puts customer convenience and new value at the top priority. We will continue to concentrate on leading product design and developing customer-centered products.“

Prior to this award, the Air & Water Application had won the grand prize at the "2016 App Award" in the life convenience category hosted by the Korea Internet Professionals Association.

IR WEBZINE2016. December

Coway News

The CEO of Coway visited call centers to encourage site-centered management.

Hae-sun Lee, the CEO of Coway, visited call centers located in Bucheon-si, Gyeonggi-do, and Yeongdeungpo-gu, Seoul, on December 5 in a bid for the Coway Trust campaign.

He not only served as a one-day call center staff to directly hear customer requirements, but had a meeting with site workers to understand their grievances and encourage them.

A site worker Joo-mi Kang said "We are working hard with the pride that our responses contribute to create positive corporate image. We will strive to faithfully listen to their requirements.“

The CEO also answered "Our company will pay more attention to you as the call center plays a key role in shaping corporate image and customer trust at the forefront.“

Coway's call centers are operating 24 hours a day and 365 day a year, treating more than 550 thousand customer requirements a month.

Since October 2015 when signing the "Agreement on Disseminating a Culture to Care Emotional Workers" with the Green Consumer Network in Korea, Coway has been taking the initiative in protecting emotional workers including call center staff.

IR WEBZINE2016. December

Coway News

Started "Coway Wi School" program to support startups

Coway started a new CSV program "Coway Wi School" to methodically support startups. On December 3, the starting ceremony of "Coway Wi School" was held and Hae-sun Lee, the CEO of Coway, gave the first lecture for the program.

The "Coway Wi School" program was prepared to support startups by capitalizing on Coway's unique one-man business cultivation capability. Currently, more than 20 thousand one-man companies called Cody, service specialist, and Bluebird, young sales specialist, are working in Coway.

About 100 preliminary startups who were selected through the online application are participating in this program to be held twice a month until May 20, 2017.

In this program, a lot of professionals in the fields of business startup, marketing, and investment provide participants with good ideas and insights for their business success.

The first lecturer was Coway's CEO Hae-sun Lee. He was very well-received by participants through delivering a lecture on "New Economy, New Entrepreneurship.“

Seung-woo Kim, a participant in the program, said, "Today's lecture gave me a chance to take an interest in entrepreneurship, the essence of business, and the importance of creative ideas once again. This program will also help me materialize my business model in the future.“

Hae-sun Lee, the CEO of Coway, said, "The "Coway Wi School" program was designed to solve the youth unemployment issue by adopting our core capabilities. We will continue to develop realistic and effective programs that can offer opportunities for hope and challenge to young generations."

IR WEBZINE2016. December

- A new CSV program guided by Coway's unique one-man business cultivation capability- Providing preliminary start-ups with 6-month profession consulting and mentoring services- Hae-sun Lee, the CEO, won good responses by giving a lecture under the title "Necessity of Entrepreneurship."

Coway News

First obtained the "CTF stage 3" testing lab certification in the industry

Coway was certified as the "CTF stage 3" testing lab by the IECEE (IEC System for Conformity Testing to Standards for Safety of Electrical Equipment) for the first time in the industry.

Coway was acknowledged for its facility and product safety testing ability from the IECEE through the KTL (Korea Testing Laboratory), which resulted in obtaining the "CTF stage 3" certification. It allows us to obtain the CB certification, an international standard, with just in-house testing results as well as to maintain the qualification as an authorized manufacturing testing lab for KC certification.

The CB certification is an international standard that most countries have adopted to verify the safety of electronic devices such as water purifier, air purifier, and bidet. The obtainment of the CB certification ensures export to 54 CB member countries.

The "CTF stage 3" testing lab is able to conduct the international certification process which is essential for the export of electronic products in the nation, which ensures time and costs saving for quality standard test.

Kwang-sik Shin, the head of TQA Center, said, "The obtainment of the "CTF stage 3" testing lab certification confirmed that our certification technology is world-class. It also allows us to develop products, verify product safety, and obtain domestic and foreign certifications without a hitch, which will ensure swift supply of safe products and acceleration of our global operations.“

Since the establishment of "International Safety Certification Test Center" equipped with internationally authorized testing equipment in Yugu Factor in 2012 for the first time in the industry, Coway has been conducting test and certification on product safety. Moreover, Coway's TQA Center has been engaging in product evaluation and certification works after acquiring 15 domestic and foreign certifications for authorized testing lab.

IR WEBZINE2016. December