LG Hausys signs MOU with Ministry of Environment for Project to improve the indoor environment for socially vulnerable groups

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1 LG Hausys signs MOU with Ministry of Environment for Project to improve the indoor environment for socially vulnerable groups On May 17, our company and the Ministry of Environment held a MOU signing ceremony for the project to diagnose and improve the indoor environment for socially vulnerable groups at the Seoul Press Center. The Project to diagnose and improve the indoor environment for socially vulnerable groups identifies harmful factors that can cause environmentally induced illnesses to socially vulnerable groups under poor living conditions such as low income families, broken home families, or households with children suffering from environmental diseases. Not only that, the project replaces wallpapers & flooring with environmentally friendly wallpaper & flooring products for households in need for free. Our company plans to participate in this project by providing ZIA-Fresh, a wallpaper product in which the surface uses PLA derived from corn, and ZIA-Sarangae, a flooring product with excellent shock absorbing qualities. Last year, our company helped various indoor spaces transform into eco-friendly environments by installing eco-friendly wallpaper and flooring products in 540 vulnerable homes through this project. It was recognized for its efforts with a Ministerial Award from the Ministry of Environment in Since March 2016, the Ministry of Environment has been working hard to identify factors causing environmental diseases at more than 2,000 households recommended by municipal governments. Among those households, 850 families will be selected for the home improvement project and, with the help from the environmental health center, free treatment will be offered to 400 children suffering from environmental diseases including atopic dermatitis and asthma. Vice President Kim Myeong-deuk, Business Director for the Decorative Materials Division, said, We will play an integral part in improving indoor conditions by supplying eco-friendly wallpaper and flooring products to households suffering from environmental diseases and others belonging to socially vulnerable groups.

2 Windows Testing Center, Acquires Glass KOLAS Our company s Windows Testing Center was recognized as the internationally accredited testing organization for glass and glass products by the Korea Laboratory Accreditation Scheme (KOLAS). As such, it has become the first in business to be capable of testing and evaluating the performance of both windows and glass products. Given that our company is now recognized by KOLAS, it can test the performance of glass products in addition to window products as an internationally accredited testing organization. Our company can test for factors such as visible transmittance, solar radiation transmittance, solar radiation reflectivity, thermal transmittance, and solar thermal acquisition rate. The KOLAS Testing Organization Accreditation System is a system where KOLAS, under the Korea Agency for Technology and Standards, evaluates the quality systems and technical capabilities of testing organizations to decide whether or not to officially recognize the organization of having the capacity to conduct testing activities in a particular field. In the past, the Windows Testing Center acted as an internationally accredited testing organization for dynamic (airtight, watertight, wind pressure) and thermal (insulation, condensation) properties. The Center tested the performance of various window products and issued test reports to help promote windows outstanding quality. Executive Director Hwang Jin-hyeong, Business Director for Windows businesses, said, With our company earning KOLAS accreditation for glass products, we ve now become the only windows producer in Korea capable of conducting comprehensive quality tests for window products. Director Hwang added, As a leader in the construction materials business, we will do our best to improve energy efficiency in Korea by ensuring the successful implementation of the Energy Efficiency Rating System for window products and by leading the way in supplying high efficiency window products.

3 LG Hausys participates in 2016 Dubai International Design Exhibition (INDEX) Our company participated in the 2016 Dubai International Design Exhibition (INDEX) held in Dubai between May 23 and 27. As the only Korean construction materials producer at this year s INDEX, our company showcased artificial marble, flooring, and wallpaper products. More than 750 companies from 51 countries around the world in a wide range of industries related interior including flooring, artificial marble, residential and office furniture etc. participated in this year s Dubai INDEX. Using our company s artificial marble product HI-MACS, we were able to turn heads at this year s event with a sculpture named Lighting Table which took advantage of HI-MACS ability to transmit light and blend in with delicate patterns as well as lighting effects. At the exhibition, we captivated visitors with a wide range of interior materials including wallpaper products featuring the design of world famous designer Marcel Wanders, residential and commercial flooring products that offer excellent durability and anti-contaminant properties. Along with showcasing our products, our company invited more than 30 domestic and international clients during INDEX and hosted the LG Hausys Design & Tech Day to introduce key construction activities both in Korea and abroad. Our company also introduced new products and actively sought out new clients in the Middle East, a region which has become popular as an emerging market. In fact, our company s wallpaper and artificial marble products are received well in the Middle Eastern market. The exported value of our company s wallpaper products such as Gracia Symphony grew three-fold in the first quarter of this year compared to the previous year with luxurious and majestic design features that reflect the taste of clients from the Middle East. Our artificial marble product HI-MACS has maintained its position near the top of the market by promoting its high quality and putting it in contrast with lowcost Chinese products that currently dominate the Middle Eastern market. Meanwhile, our company had forecasted that the construction market for commercial facilities in addition to the market for residential construction materials will grow following the increase of infrastructure facilities in the Middle East including schools and hospitals. As such, it opened a branch last January in Dubai to use it as a forward base for its advancement in the Middle East. Our company is also a constant fixture in exhibitions held in the Middle East.

4 LG Hausys launches eco-friendly flooring product, ZIA- Sarangae Our company launched ZIA-Sarangae, a beneficial, clean, safe, environmentally friendly, and family friendly flooring product for each and every member in the family. Using PLA derived from corn on the surface where it comes into contact with the skin, ZIA-Sarangae earned the Environment Mark, Atopy-Safe Mark, and the top grade HB mark by minimizing the emission of endocrine-disrupting chemicals and other harmful substances. This is what makes ZIA-Sarangae a product of particular interest for mothers having a hard time with atopic dermatitis on their children. Also, ZIA-Sarangae has reduced the slipperiness on its surface and offers outstanding shock absorbing qualities which helps it provide a safe walking experience for elderly consumers. It is easier to maintain compared to hardwood floors which means it is more hygienic in areas shared with dogs. Depending on the thickness, ZIA-Sarangae is divided into two product types 3.2 and 2.7. With thicker film applied on the surface compared to flooring products of similar thickness, it is extremely durable. In particular, the 3.2 product grabs comes with trendy designs such as the herringbone, stencil-tile, and grey-tile patterns that have been preferred over hardwood style floors by homemakers in recent years. Consumers can choose the colors they want with 13 different options for the 3.2 product and 7 options for the 2.7 product.

5 Renewed ZIA-Fresh wallpaper hits the market Our company launched the renewed version of ZIA-Fresh, an eco-friendly wallpaper product that helps consumers create a healthier space with reasonable prices. ZIA-Fresh uses all-natural corn extracts to coat the surface and adds an innocuous air filter layer to break down harmful indoor substances. Also, it can be applied using the same method as silk wallpaper products while retaining the functionality of existing eco-friendly wallpaper products. This year s renewed product has bolstered its pattern-less design that emphasizes texture. Therefore it helps it feel more like fabric and improve the touch and volume of the products. In addition, a Romantic pattern was added for younger consumers. Overall the new ZIA-Fresh product line developed 5 additional patterns and 28 new colors to ensure that its design stayed up to date with latest trends.

6 LG Hausys all over the world Our company participates in overseas exhibitions and meets consumers from around the world 2016 KBIS 2016 KBIS The first exhibition our company participated in was the 2016 Kitchen & Bath Industry Show (KBIS), the largest kitchen and bathroom exhibition in the United States. The event took place in Las Vegas in January and our company opened a booth focusing on Luxury as its main theme. Our company also unveiled new HI-MACS products, our artificial marble product line. We showcased a wide range of residential spaces using HI- MACS including shower booths, bathrooms, and laundry rooms. Our company also grabbed the attention of visitors by unveiling three new VIATERA products, our engineered stone products that were popular last year in the North American market. DOMOTEX Asia DOMOTEX Asia After that, our company flew to Shanghai to participate in China s largest construction material exhibition, the 2016 DOMOTEX Asia. Here, our company showcased construction materials for medical and academic facilities. At DOMOTEX, our company created a booth using the theme Health & Education to offer flooring and wall tile products for medical and academic facilities, taking into account the ageing population and two children policy. Also, our company hosted the LG Design & Tech Day during the exhibition period to provide information on new products and latest design trends in an attempt to enhance our marketing efforts and interaction with the Chinese market.

7 At the same time, our company traveled to Nuremberg in Germany to participate in the Fensterbau Frontale 2016 and begin its marketing efforts in the European market for films applied to window products. Fensterbau is the largest window product exhibition in Europe that showcases window products, glass products, profile systems, ventilation devices and a wide range of other window related materials. Our company promoted a number of new exterior film products at the event. Exterior film products are durable films that can be applied to the surface of windows, doors, and facades that get exposed to external environmental factors such as sunlight, snow, and rain. Fensterbau Frontale 2016 Milan Design Week Dubai INDEX 2016 Yapi Turkeybuild Istanbul In April, our company attended the 2016 Milano Design Week held in Milano, Italy. At this event, our company grabbed headlines with a unique exhibition space that featured five grand columns introducing key products such as automobile parts, surface materials, window products, flooring products, and interior films. In particular, our company s design turned heads throughout the Design Week including our designs created in collaboration with world famous industrial designers. In May, our company participated in the 2016 Dubai International Design Exhibition (INDEX), the largest exhibition for interior materials and furniture in the Middle East. As the only Korean construction materials producer at the exhibition, our company showcased artificial marble, flooring, and wallpaper products. Our company also joined the 2016 Yapi Turkeybuild Istanbul to target the European market. Using our company s artificial marble product HI- MACS, we were able to turn heads at this year s event with a sculpture named Lighting Table which took advantage HI-MACS ability to transmit light and blend in with delicate patterns as well as lighting effects. Like so, our company has been busy throughout the first half of 2016 participating in multiple exhibitions across the globe including the United States, China, Germany, Italy, Dubai, and Turkey. We hope to keep up our travels around the world to meet our clients and continue our growth in the future.

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