Hot Issue. Coway s Re:NK opened a pop-up store on Garosu-gil. IR WEBZINE April

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2 Hot Issue Achieved KRW billion in sales and KRW 89.8 billion in operating profit in1q 2014 thanks to favorable sales growth of flagship products Increases of 6.4% in sales and 29.7% in operating profit year-on-year in 1Q 2014 Favorable sales growth of flagship products such as ultra slim water purifiers and air purifiers with humidification function Coway officially entered Hi-Mart. Improved competitiveness in sales channel Plan to sell our products through 50 Hi-Mart branches in major cities including Apgujeong and Daechi in Seoul Operating Coway s independent Brand Zone

3 Coway s Re:NK opened a pop-up store on Garosu-gil. Hot Issue Operating a pop-up store for a month in April in commemoration of the launch of Cellto-Cell Essence Made space to directly experience products with the concept of finding real cell Holding various events for visitor

4 Hot Issue New Product Ultra slim ice-making water purifier Hanppyeom Ice Korea s smallest ice-making water purifier that innovative technologies were adopted Smart function to announce the amount of drinking water needed for a family a day for the first time in Korea Generating larger, harder, and more transparent cakes of ice Received the if Design Award Re:NK UV Defense Essence Sun Screen Cream that can defend UV rays and help skin whitening

5 Market Review Stock Market In April 2014, the KOSPI fell by 1.20% over the previous month to 1, points. Foreign investors had sold stocks in the domestic exchange market from the beginning of the year until March, while they struck a tone of net purchasing in April. However, the KOSPI has stayed around 2,000 points due to realizing marginal profits by investment trust companies and fund redemption. At the end of April, political crisis in Ukraine had a negative effect on the KOSPI. During the period, electricity & gas, food & beverage, and securities sectors showed strong with increases of 6.5%, 3.1%, and 2.6%, respectively. Meanwhile, transportation equipments, bank, and machinery sectors fell by 8.4%, 5.7%, and 5.7%, respectively. Foreign investors purchased KRW 3.12 trillion worth stocks, while institutional and individual investors sold KRW 1.98 trillion and KRW billion, respectively. The KOSPI in May 2014 is expected to tap into 2,000 points again thanks to the following reasons: favorable economic indices at home and abroad, improvement of domestic companies operating performances since 4Q 2013, and expectation on continuous net purchasing of foreign investors.

6 Market Review Stock Price Classification % change of COWAY Stock Price vs. KOSPI vs. KOSPI200 %change of KOSPI %change of KOSPI200 5 일 일 일 Coway s stock price has continued strong trend since March and ended at KRW 81,500, up 9.10% over the previous month, at the end of April. As short, mid, and long-term moving average lines also maintained strong positions, the stock price is expected to technically achieve additional growth. This result stemmed from Coway s relentless growing operating performances. In particular, the company s operating profit in 1Q 2014 outperformed the market consensus, which unleashed net purchasing of foreign investors in April. The company has also realized double-digit growth in exports and proved excellent profit generation ability, which raises expectations on continuous improvements of operating performances in the future. During April, the number of shares held by foreigners increased 696,030 shares or 1.7%, compared with the prior month. As of the end of April, they maintained 54.17% ownership. Domestic institutional investors marked net selling of 691,092 shares during the same period. 41,779,977 shares (as of April 30, 2014) Changes in Stock Price in April 9.10% Changes in Shares Held by Foreigners in April 696,030 shares (1.7%) Net Changes in Shares Held by Institutional Investors in April -691,092 shares

7 Market Review Analyst Ratings Strong Buy Buy Hold Underperform Sell Average Ratings Average Target Price = \100,500 Sell StrongBuy Low : \94,000 High : \110, KDB Daewoo Securities Target price : 103,000 BUY Robust business portf Coway posted 1Q14 non-consolidated revenue of W494.8bn (+6.4% YoY) and operating profit of W89.8bn (+29.7% YoY). Revenue was in line with our projection and the consensus, while operating profit once Shinhan Investment Corp Target price : 100,000 BUY Earnings improvement in progress Coway s 1Q14 standalone sales came in at W494.8bn (+6.4% YoY) and operating profit at W89.9bn (+29.8% YoY). Rental sales increased 4.8% YoY to W339.4bn with new rental accounts up 8.4% QoQ Daishin Securities Target price : 110,000 BUY Coway shines through gloom 1Q14 results: Sales W494.8bn (+6.4% YoY), OP W89.8bn (+29.7% YoY) and NP W66.1bn (-17.6% YoY) Korea Investment & Securities Target price : 94,000 BUY Fundamentals improve, growth outlook intact... Coway posted 1Q14 separate sales of W494.8bn, up 6% YoY, and OP of 89.8bn, up 30% YoY, in line with our estimates and slightly above the consensus. OPM climbed 3.2%p to 18.1%. Consolidated WOORI investment & Securities Target price : 100,000 BUY Focus on long-term growth drivers With a research blackout now lifted, we initiate coverage on Coway at Buy with a target price of W100,000. Given its unique earnings structure, wherein a large amount of its non-cash expenses (including

8 KDB Daewoo Securities Target price : 103,000 BUY Market Review Analyst Ratings Standing out from the crowd We forecast Coway to post 1Q non-consolidated revenue of W496.4bn (+6.7% YoY), and operating profit of W85.9bn (+24.1% YoY), broadly in line with market expectations. OP Shinhan Investment Corp Target price : 100,000 BUY Welcoming the yellow dust We forecast Coway s 1Q14 standalone sales of W501.1bn (+7.7% YoY) and operating profit of W90.3bn (+30.4% YoY). Rental subscribers are expected to have increased 4.4% YoY to 4.86mn, and rental Korea Investment & Securities Target price : 94,000 BUY A must-have for your families and investors... We maintain BUY on Coway and lift the TP from W82,000 to W94,000. As earnings estimates are now based on consolidated, EPS is lifted 2% for 2014F and 3% for 2015F and the 12MF

9 Coway News Record KRW billion in sales and KRW 89.8 billion in operating profit in 1Q 2014 Increases of 6.4% in sales and 29.7% in operating profit year-on-year in 1Q 2014 Favorable sales growth of flagship products such as ultra slim water purifiers and air purifiers with humidification function On April 28, Coway made an official announcement that it achieved KRW billion in sales and KRW 89.9 billion in operating profit in 1Q 2014, which increased 6.4% and 29.7% over the same period of last year, respectively. Coway showed well-rounded growth in each business sector such as domestic rental, home care service, domestic cosmetics, and overseas business. - Expanded rental sales Rental sales increased 4.6% year-on-year to KRW billion thanks to favorable sales growth of flagship products such as water purifier, air purifier, and bidet. In particular, ultra slim water purifiers Hanppyeom 1 and Hanppyeom 2 accounted for 26% of total rental sales. Also, sales of air purifiers and humidifying air purifiers also contributed to rental sales growth thanks to environmental issues such as fine dust and yellow dust. Rental sales have recorded 260 thousands in 3Q 2013, 290 thousands in 4Q 2013, and 320 thousands in 1Q Reduced losses on disposal of rental assets by maintaining low cancellation rate Coway is maintaining cancellation rate under 1% backed by high product quality and service capability. As the result, losses on disposal of rental assets recorded KRW 9.5 billion in 1Q. This figure corresponded to 2.8% of total rental sales and decreased by 0.1%p over the previous year s 2.9%. - Increasing sales from overseas business Sales from overseas business in 1Q soared 43.6% over the same period of last year thanks to skyrocketing exports of air purifiers triggered by air pollution issues in China. Local sales of overseas markets also rose by 5% year-on-year to KRW 46.0 billion, which was attributable to rental sales growth in Malaysia and the US. - Sales increase in Home Care service and domestic cosmetics business Domestic cosmetics sales increased 17.4% year-on-year to KRW 21.0 billion in 1Q, which was attributable to activation of sales through home shopping channels and extended customer contact points. Sales from home care service also rose by 37.3% to KRW 12.2 billion. Jae-ho Lee, the Vice President of Coway, said, Our competitive edge will be solidified through launching innovative new products, enhancing door-to-door sales capability, and expanding sales channels. Therefore, we expect to gain momentum for growth in the second quarter.

10 - Appendix 1) K-IFRS Non-consolidated Operating Performance in 1Q, 2014 [Unit:: KRW in billions] Coway News Category Q Q Rate Rate 4,948 4, % Operating Profit % Margin 18.1% 14.9% 3.2%p Appendix 2) K-IFRS Consolidated Operating Performance in 1Q, 2014 [Unit:: KRW in billions] Category Q Q Rate Rate 5,350 5, % Operating Profit % Margin 16.9% 13.7% 3.2%p

11 Re:NK launches UV Defense Essence Sun Screen Cream Coway News Coway s prestige cosmetic brand Re:NK launched the UV Defense Essence Sun Screen Cream which blocks UV light and helps skin whitening. This product is applied with Double UV Filtering to block UVA and UVB simultaneously. Because of its combined function of blocking UV with organic and inorganic blocking ingredients, this product is ideal for environments with strong UV exposure when taking a walk or exercise. This product also provides skin whitening function because it contains Re:NK s self-developed whitening ingredient Enerwhite which suppresses generation and movements of melanin pigment and keeps skin white and bright. Also, this product contains micro porous powder to create soft skin by enhancing sebum absorption and preventing oily skin. It also fills wrinkles and uneven parts to give beautiful and soft look. Areum Jang, the Head of Re:NK Brand, said Latest trend shows that consumers want sun cream products that can block UV and also have multi-skincare function. This product is expected to receive great response from the consumers with its basic function added with whitening and skin managing function.

12 Established the Coexistence and Mutual Cooperation Center Coway News Prepared the center for sustainable shared growth with partnering companies Signed an agreement on fair transaction and shared growth Coway announced on April 21 that the company opened the Coexistence and Mutual Cooperation Center to pursue sustainable shared growth with partnering companies. The 3-story Coexistence and Mutual Cooperation Center, located in Chunui-dong Bucheon-si, Gyeonggi-do, consists of educational facilities such as injection modeling training room and assembly process training room, and amenity facilities such as cafeteria and lounge. The center is planned to be utilized as an educational place for developing capabilities of partnering companies human resources and a communication place for exchanging technology and innovative activities between them. On the opening ceremony, employees of Coway, such as Dong-hyun Kim, the CEO, Insu Ra, the Head of Production Operation HQ, and Seon-yong Lee, the Chief of Environmental Technology Research Center, and personnel from 62 partnering companies attended. On the same day, Coway also signed an agreement on fair transaction and shared growth with 147 partnering companies. Through this agreement, Coway plans to focus on the following 4 strategies: establish fair transaction culture, improve partnering companies production and technology competitiveness, expand total management support program, and encourage coexistence management between contractors and subcontractors. To achieve the 4 strategies, Coway established detailed support plans such as determining and adjusting reasonable unit price, expanding participation in joint development for patent and national projects, and listening to VOCs of subcontractors and responding to them. At the opening ceremony, Coway s CEO Dong-hyun Kim said, Shared growth can be only achieved when the CEO, related departments, and every employees practice it with keen interest. Coway makes shared growth the top priority goal and will continue to do its best to support partners.

13 Launches a ultra slim ice-making water purifier Hanppyeom Ice Coway News Korea s smallest ice-making water purifier that innovative technologies were adopted Smart function to announce the amount of drinking water needed for a family a day for the first time in Korea Generating larger, harder, and more transparent cakes of ice Received the if Design Award Coway expands the lineup of Hanppyeom water purifiers with the launch of a smart ultra slim ice-making water purifier that can announce the amount of drinking water needed for a family a day for the first time in Korea. In 2012, the Company had launched the Hanppyeom water purifier and unleashed the trend of ultra slim water purifier. Last year, the launching of the Hanppyeom 2 model approved its superiority in innovative technology once again. The newly launched ultra slim ice-making water purifier Hanppyeom Ice boasts the smallest size in the domestic market. Also, this product indicates daily water consumption for the first time in the domestic market. It indicates up to 3 people s water consumption based on World Health Organization s recommended amount of 8 cups (250ml) per day and lets users manage family health. To increase consumers satisfaction, this product generates cakes of ice with the weight of 9 grams larger than existing ones to keep the ice longer and applied the wave generation ice-making technology to make transparent and hard ice. To enhance the sanitation, tank, storage, and ice trays can be easily removed for cleaning and maintaining. Additionally, this product has been applied with instant water heating function to reduce electricity use and continuously heat the water at 85o Celsius. Because of this function, water is not heated constantly but only at the moment of use and saves about 80% of electricity use compared to other water heating systems. (based on use of 1.2 liter a day) Furthermore, it uses the 2nd generation nano-trap filter that can directly extract from the tap water. The filter uses static absorption technology to removes not only 99.9% of bacillus and virus but also heavy metals to provide clean and safe water. Also, because of its filtering method, it can provide desired amount of water even in the regarding the time and amount. Hanppyeom Ice is operated with the touch display to enhance user convenience and removed the front curve to fit any type of containers. These convenience features and refined and sensual white tone design contributed to receiving awards from the Germany s if Design Award, the US s IDEA Design Award, and Koreas PIN UP Design Award. Hyeon-Jeong Yoon, the Head of Marketing Head Quarter, said Hanppyeom Ice is a product integrated with Coway s own innovative technology. and We will continue to launch products with the industry leading technology to improve the quality of consumers lives.

14 Promote the Zero Fine Dust Campaign for national health Coway News With a message use air purifier indoors and wear mask outdoors against the yellow-dust season Inform the importance of managing indoor air through hosting events on the street and sales offices Plan to distribute 370 thousand self-made masks On the 3rd of April, Coway announced that the company would start the Zero Fine Dust Campaign to prepare the nation for the yellow dust season. This campaign was prepared to inform people to protect their families from the dangers of yellow dust and fine dust, through which a message use air purifier indoors and wear mask outdoors will be delivered. To do so, Coway plans to distribute 370 thousand self-made masks through street events and sales office throughout the country. Prior to this, on 2nd of the April, the company hosted the Zero Fine Dust Campaign event at Myung-Dong, Seoul. At the event, the company informed the importance of indoor air management through plaster mime performance that symbolized fine dust and handed out masks to people. The event is scheduled to open in Yeoksam-dong, Yeouido, and Samsung-dong on 3rd, Gangnam station on 4th, Daehak-ro on 5th, and Myeong-dong on 6th. Jun-hyun Kim, Head of Marketing Communication Team, said Due to recent rising issues on yellow dust and fine dust, people showed great response towards our campaign. and we will continue to operate this kind of a health campaign and fulfill the responsibility and value as a company to care national health.

15 IR Activities EVENT DATE LOCATION NOTE 1Q 2014 earnings release KRX Building in Yoido -