Market ReviewStock Market

The KOSPI rose by 1.89% from the previous month to 2,391.79 points at the end of June 2017, realizing bullish

market for seven months in a row. After a sharp increase in the previous month, the KOSPI has maintained a stable

growth backed by strong purchasing power. In the technical aspect, both the KOSPI and well-ordered mid and long-

term moving average lines raise the expectation on additional growth.

This rally resulted mainly from expectations on global economic recovery. Major global stock markets have made a

valuable progress since the increase of the key U.S. interest rate, shaping a clear direction. The improvement of

economic indices of leading countries, favorable operating performances of companies, and expectations on global

economic growth have led to a preference on risky assets.

The overwhelming view in the stock market is an additional growth in July. This is underpinned by expectations on

favorable investment environment. Meanwhile, the stock market seems to face decoupling in the aspects of asset,

region, and growth speed in the near future.

IR WEBZINE2017. June

Market ReviewStock Price

The stock price of Coway increased 3.48% from the previous month to KRW 104,000 at the end of June. It has shown a stable growth trend after the block deal with institutional investors in mid-June. In the technical aspect, it is likely to find a momentum for rebound on mid and long-term moving average lines.

Coway has been achieving stead growth in its mainstay health appliance business and improvement in profitability. This positive trend allowed market expectation and target price to be on a rise. Recently, air purifier sales are enjoying a sharp increase due to the fine dust issue and mattress business is also showing a remarkable growth. Moreover, overseas business is enjoying double-digit growth around the Malaysia subsidiary. These favorable environments will have a positive effect on our stock price.

During June, the number of shares held by foreigners increase 108,625 shares, or 0.2%, compared with the prior month. As of the end of June, they maintained 59.83% ownership. Domestic institutional investors marked net selling of 49,963 shares during the same period.

Classification% change of COWAY %change of

KOSPI%change of

KOSPI200Stock Price vs. KOSPI vs. KOSPI200

5 Days 0.00 -0.55 -0.48 0.55 0.48

20 Days 2.97 0.96 0.43 2.01 2.54

60 Days 8.11 -2.61 -2.98 10.72 11.09

IR WEBZINE2017. June

+108,625Shares(0.2%)

-49,963Shares

Changes in Stock Price in June

Changes in Shares Held by Foreigners in June

Net Changes in Shares Held by Institutional Investors in June44,759,947 Shares

(59.83)

(as of June. 30, 2017) +3.48%

Coway News

Launch a new-concept ice water purifier, “Ice AIS”

On June 19, Coway launched a new-concept ice water purifier “Ice AIS” which is a strategic product for 2017 with the aim of shifting a new paradigm in the water purifier market.

● I (Ice): consistently making new-concept ice by the “Active Cooling System”This product introduced a new-concept technology “active cooling system” to make ice without evaporator. This technology makes it possible to create thin ice by passing purified water through cold pipes, and then thin ice agglomerates naturally to be thick ice. The ice agglomerate continues to be made until the tank is full. This system ensures faster ice-making than existing method and low noise. This product generates cylindrical ice stick that even children can crunch easily.Particularly, ice-making components are made of stainless to ensure high hygiene. Moreover, water tank is made of transparent materials to help users see the cleanness of water and ice with their eyes.

∙ A (Aqua pure): offering cleaner water by the “CIROO Filter System”∙ I (Ice): consistently making new-concept ice by the “Active Cooling System”∙ S (Sparkling): easily creating carbonated water by the “Direct Carbonated Water Creation Acid System”

IR WEBZINE2017. June

● A (Aqua pure): offering cleaner water by the “CIROO Filter System”The “Ice AIS” also adopted the CIROO (Coway Intensive Reverse Osmosis) system that boasts high-performance water-purifying function. This system consists of the CIROO filter and C9 carbon block filter. The CIROO filter demonstrates 24% more tufted intensive membrane structure than existing RO membrane filter, which ensures both high-performance water purification and supply of abundant water. The C9 carbon block filter also demonstrates higher water purification function by adopting 3-stage layers developed by Coway’s independent technologies.This product automatically sterilizes water tank, water pipes, and faucet with electrolyzed water, offering clean and safe water to users. Moreover, if water consumption is mere for 24 hours, this product automatically discharges existing water in the tank and refills clean water.

● S (Sparkling): easily creating carbonated water by the “Direct Carbonated Water Creation Acid System”The “Direct Carbonated Water Creation Acid System” was introduced to the “Ice AIS”, which is differentiated with existing method that a user fill the cup with water and then inject carbon acid. It also offers a 3-stage carbon acid concentration control system and fixed quantity water extraction function (120ml, 250ml, and 500ml).

Coway News

IR WEBZINE2017. June

● Caring users’ water-drinking habits by experience sound and IoCare systemThis product also enhances user convenience and satisfaction and cares users’ water-drinking habits by making experience sound in special cases. Other major functions include remote operation by smartphone application, real-time check of users’ water drinking habits, silver care function, 3-level hot water supply system (45˚Cㆍ70˚Cㆍ85˚C), and 1st grade energy consumption efficiency by adopting the circulation air cooling and instant water heating systems.

Coway News

Launch a new bidet

Coway launched a new bidet (BAS29-A) with upgraded hygiene and cleaning function on June 7. The 2-stage self-sterilizing system sterilizes all water pipes and the nozzle automatically on every use of the bidet. This system automatically operates once a day (as of 12 uses) and manual operation is also available by touching a button.

The self-sterilization is conducted by electrolyzed water which is harmless to human body. The electrolyzed water obtained the S Mark for sterilization and eliminates major bacteria including colon bacillus and staphylococcus aureus. This product also boasts the twin nozzle system made of stainless steel and diverse cleaning functions such as soft start function and air-plus cleaning function.

This new bidet obtained the IPX5 grade in waterproof technology from the Korea Testing Laboratory and saves energy by equipping with the ‘Green Plug,” a smart power-saving technology developed by Coway. Braille control panel helps users who are visually handicapped use this product conveniently.

Yong-joo Park, the head of Marketing Division, said, “This product has competitiveness in hygiene, cleaning function, user convenience, and pricing which are critical factors to customers. We expect this product to get much attention of customers who plan to buy a new bidet.”

- Enhance hygiene by adopting 2-stage self-sterilizing system and twin nozzle system- Upgrade cleaning function by diverse water-jet types

IR WEBZINE2017. June

Coway News

Promote a campaign to ensure the hygiene of water purifier jointly with the Korea Consumer Agency

Coway promotes the “Water Purifier Hygiene Campaign” jointly with the Korea Consumer Agency and domestic water purifier suppliers.

This campaign targets small-sized multiuse facilities which are vulnerable to hygiene and safety. When they apply this campaign, CODYs directly visit them to check their water purifiers and offer cleaning service for free.

This campaign was prepared to inform how to use and manage water purifiers hygienically and safely, continuing three months from July to September.

Small-sized facilities using Coway’s water purifiers can apply this service to the customer center (1588-5200) during the campaign period, and receive a single-use water purifier self-check kit for free.

Moreover, Coway plans to provide customers who operate multiuse facilities and small-sized workplaces with a water purifier self-check manual through CODYs and its corporate website.

Sang-jun Kim, the head of Communication Office, said, “This campaign is voluntarily conducted jointly with the Korea Consumer Agency and water purifier suppliers with the aim of enhancing hygiene and safety in summer. We will continue to make efforts to enhance customer trust in the water purifier market with a strong responsibility as the market leader.”

IR WEBZINE2017. June

Coway News

Achieved the “Best Rating” in the shared growth index for four consecutive years

Coway achieved the “Best Rating” in the shared growth index released by the Korea Commission for Corporate Partnership on June 28, which was the fourth result in a row.

The Korea Commission for Corporate Partnership evaluates the level of shared growth of companies every year in the four ratings “Best, Excellent, Good, and Common.” This year, a total of 155 companies were evaluated, 25 of which achieved the best rating.

Coway was highly recognized in that it had focused on operating fair trade guidelines, enhancing suppliers’ management stability foundation, supporting infrastructure for growth of suppliers, managing supplier satisfaction, and communicating with suppliers.

Particularly, Coway supported suppliers’ financial stability by running the “Co-prosperity Fund” and their growth through the “Trust Council 2.0” activity. The “Co-prosperity Fund” has been operating since 2011 to help suppliers solve financial problems. To this end, Coway raised KRW 20 billion in collaboration with financial institutions.

Furthermore, Coway has held the “Trust Partner’s day” event to pursue shared growth with suppliers.

Young-jin Choi, the head of SCM Division, said, “With the belief that the competitiveness of suppliers ensures our competitiveness, we have established realistic and effective shared growth plans. We will continue to expand investments in and support for suppliers to help them grow into competitive players.”

IR WEBZINE2017. June

Coway News

Won the “New Technology Innovation Award” for 15 consecutive years

Coway won the “New Technology Innovation Award” at the “2017 Korea’s Innovation Award” held by the Korea Standards Association on June 23, which was the 13th achievement in a row.

The “Korea Innovation Award” celebrates its 18th anniversary this year. It aims to spread and share the best innovation practices and their values by awarding successful companies in management innovation in the field of new technology, product, and service. Evaluation items include CEO’s leadership, innovativeness, competitiveness, growth anticipation, and customer satisfaction.

The award winner of this year is “Ice AIS.”

The “Ice AIS” is an innovative product with premium functions. This product introduced a new-concept technology “active cooling system” to make ice without evaporator. This technology makes it possible to create thin ice by passing purified water through cold pipes, and then thin ice agglomerates naturally to be thick ice. The ice agglomerate continues to be made until the tank is full. This system ensures faster ice-making than existing method and low noise. This product generates cylindrical ice stick that even children can crunch easily.

This product also adopted the CIROO (Coway Intensive Reverse Osmosis) system that boasts high-performance water-purifying function. In addition, the “direct carbonated water creation system” was introduced to the “Ice AIS” to help users enjoy clean carbonated water at home. This system also enables to control the level of carbonic acid in three stages.

The “Ice AIS” won the new technology innovation award in recognition of introducing unprecedented new technologies.

Hae-sun Lee, the CEO, said, “We have made a concerted effort to develop new technologies that can lead the future water purifier market, which resulted in winning the award. We expect this product to create a momentum for a new chapter of ice water purifier.”

IR WEBZINE2017. June

Coway News

Showcase a robot air purifier at major international airports in Korea

Coway signed an agreement with the Korea Airports Corporation to start the trial service of robot air purifier at major international airports in Korea.

In accordance with the agreement, Coway plans to showcase innovative robot air purifiers that ensure autonomous mobility and air purification at GimpoInternational Airport and other major domestic airports from the end of this year. The robot air purifier will provide clean and pleasant air to passenger terminals where indoor air quality control is essential due to a large floating population.

Coway had already showcased its robot air purifier at the “2017 CES (Consumer Electronics Show),” the world’s largest home appliances and IT devices, held in Las Vegas, U.S., in January 2017. This product monitors the level of air pollution by space and cares air quality based on the results.

Hae-sun Lee, the CEO, said, “This trial service will give us a good chance to showcase our advanced technologies to global citizens in preparation for the Fourth Industrial Revolution era.”

- Plan to launch trial services at Gimpo International Airport and some other international airports at the end of 2017- Monitor the level of air pollution in passenger terminals in real time and care air quality automatically

IR WEBZINE2017. June

Coway News

Hold the “Coway Run” event

In celebration of the World Environment Day on June 5, Coway held the “CowayRun” event at Seoul Land in Gwacheon, Gyeonggi-do, where employees and customers have a marathon and donated environmental funds.

This event was prepared to deliver the value of clean water and share the love of water as a leading water and environment company.

IR WEBZINE2017. June

Coway News

Participate in the “2017 KBC” exhibition to target the Chinese bidet market

Coway showcases its innovative products including the “self-sterilizing bidet” at the “2017 KBC (Kitchen & Bath China),” the world’s largest kitchen and bath products exhibition, held in Shanghai, China, from May 31 to June 3.

The KBC celebrates its 22nd anniversary this year, in which more than 4,000 companies from 35 countries participate.

Coway exhibits 27 products in 5 categories – bidet, air purifier, water purifier, water softener, and juicer – at the exhibition. Particularly, the self-sterilizing bidet (BAS27-A) and thermal bidet (BASH24-A) were highly recognized for technological innovation, gaining much attention of visitors.

The self-sterilizing bidet (BAS27-A) boasts 3-stage system that automatically sterilizes water pipes and nozzle as well as injection of whirlwind-type sterilized water into the toilet bowl.

The thermal bidet (BASH24-A) has thermal function that uses near infrared rays and a special hip bath function that uses exclusive water injection, which help care anus healthily.

Yong-sung Kim, the head of Overseas Business Division, said, “With the aim of targeting the global bidet market, we participate in this exhibition to showcase our innovative products. We will continue to expand our business to the world by developing localized products and services.”

IR WEBZINE2017. June

IR Activities

EVENT

DATE

LOCATION

NOTE

Coporate day

2017-06-23

Mirae Asset Center Building

Mirae Asset Daewoo

EVENT

DATE

LOCATION

NOTE

Conference

2017-06-19 ~ 06-20

Yeouido Conrad

UBS Securities

EVENT

DATE

LOCATION

NOTE

Conference

2017-06-08 ~ 06-09

Singapore

Nomura Securities

IR WEBZINE2017. June