Continuing ‘Digging Wells in Cambodia’ campaign for 8 consecutive years - Completed 840 wells and plan to expand up to 1,000 wells by 2015 - Helped local children have dreams by improving water quality and offering art classes and field events

‘CODY’ members to deliver rice to people in need with profits made from collecting used filters - Donated 2,008 sacks of ‘Rice of Love’ to 1,004 people in need (plan to conduct every year)

IR WEBZINE 2013. December

Sharp increase in sales of natural humidification air purifier thanks to ultrafine dust issues

- Sales volume in November increased 78% compared to the previous month. - Ultrafine dust from China heightened the necessity of maintaining indoor air filtration and humidity.

Launched a special edition Re:NK brand ‘Holiday Holic’ at Christmas Coway launches a special edition Re:NK brand ‘Holiday Holic’ consisted of Radiance Color Cream sets for Christmas and year-end holidays. This new brand will be introduced on CJ O’ Shopping for 65 minutes on December 8.

IR WEBZINE 2013. December

The KOSPI ended at 2,011.34 points in December, recording 1.64% decrease over the previous month. It was likely that the U.S. Fed tapering did not affect negatively on the domestic stock market. But, in the global financial market, a lot of speculative investors seemed to position their investments in buying dollar and relatively selling Yen because they expected the tapering to make dollar strong, which unleashed weaker yen. This circumstance somewhat impacted on the domestic stock market in the first half of the month. In December, bank, power & gas, food & beverage industries showed increase but industries that rely largely on export, such as electrical & electronics, automobile, and construction, were directly impacted by weak yen and recorded negative profit. The stock market is expected to be strong in early 2014 backed by a slowdown in weak yen and global economy recovery, while there are also opinions that careful approach is necessary because of sluggish domestic economic recovery and uncertainty of major corporations’ operating performances during the fourth quarter.

IR WEBZINE 2013. December

Coway’s stock price in December repeatedly fluctuated between KRW 62,000 and KRW 67000 and ended at KRW 66,400, 0.3% increase from previous month. It appears to begin level off after the rise in price since mid-November. As Coway’s operating performance during the fourth quarter is expected to show satisfying growth in sales and operating profit, analysts have raised the target price again. This shows great possibility of additional increase in share price. In addition, with the anticipation of enormous sales growth of air purifier in Chinese market as a result of serious social issue of air pollution, Coway is expected to enjoy sales growth of air purifiers as an exclusive supplier to Philips in China. Because air purifier market in China is in early stage, large benefit is expected. During December, the number of shares held by foreigners decreased 171,435 shares or 0.4%, compared with the prior month. As of the end of December, they maintained 53.41 % ownership. Domestic institutional investors marked net purchasing of 224,064 shares during the same period.

Classification % change of COWAY %change of

KOSPI %change of

KOSPI200 Stock Price vs. KOSPI vs. KOSPI200

5 Day 5.40 4.67 4.26 0.72 1.14

20 Day 0.30 1.94 2.28 -1.64 -1.98

60 Day 15.48 14.88 14.57 0.59 0.91

IR WEBZINE 2013. December

41,191,140 shares

(as of December 30, 2013)

Changes in Stock Price in December

Changes in Shares Held by Foreigners in December

-171,435 shares (-0.4%)

Net Changes in Shares Held by Institutional Investors in December

224,064 shares

0.30%

2013-12-30 | Shinhan Investment Corp | Joshua Kong | Target Price : 80,000 | BUY

1. Strong Buy

2. Buy

3. Hold

4. Underperform

5. Sell

0

2

0

0

0

Average Ratings = 2 Average Target Price = \80,000

Sell StrongBuy Low : \80,000

High : \80,000

Benefits from growth of China’s air purifier market We estimate total air purifier sales in China this year to reach 1.0~1.5mn units, increasing by 2~3 fold YoY. We expect high growth to continue as air pollution worsens. Based on the number of households, we estimate …

FULL REPORT VIEW

2013-12-06 | Shinhan Investment Corp | Joshua Kong | Target Price : 80,000 | BUY

Biggest beneficiary of China air pollution Coway’s margin improvement is expected to continue in 2014. Air purifier exports are increasing rapidly due to worsening air pollution in China. Domestic rental product line-up is …

FULL REPORT VIEW

IR WEBZINE 2013. December

Provided scholarships to Gyomoon middle school students

Coway hosted the ‘Grow with Water Award’ for Gyomoon middle school students who proactively participated in the ‘Grow with Water Project’ for 6 months and provided scholarships to them on November 29. This award ceremony was prepared to show sincere gratitude towards students for their participating in the project with Coway and to give great memory as the project ended. As the part of the project, through May to November, students have refrained from drinking beverages and made efforts to drink 8 cups of clean water a day. The event included granting awards and scholarships to outstanding participants. In particular, the scholarships were more meaningful because

- Prepared for students participated in the ‘Grow with Water Project’ for 6 months - Provided prize money earned from ad contests to students who were main characters of the ad

those were the prize money received from various ad contests. Main characters of the award-winning ‘Grow with Water Project’ ad were Gyomoon middle school students. The ‘Grow with Water Project’ started to help Korean children, who only drink 1/3 of recommended intake of water per day by World Health organization (WHO), to form a healthy habit. To lead students to form a healthy habit, Coway gave company-produced ‘water alarm app’ and ‘grow with water’ gift box (tumbler, record journal, etc.) and brought in a group of specialists (doctors, psychiatrists, and nutritionists) and performed periodic physicals and consultations to observe changes in their health and habits. Also,’ Grow with Water Concert’ and ‘Grow with Water Camp’ were held during the summer to encourage their enjoyable participation. Woo-hyeok Hwang (13 year-old), who was selected as the ‘Water King’ for drinking most water during the project, said, “I kept telling myself that I was getting healthier by using the tumbler to drink water constantly and recording the amount of water I drank on the note, which made me drink more water naturally. Last 6 months were special to me as it gave me fun experience and helped me get healthy.” Hyun-jeong Yoon, Head of Marketing division, said, “It was our way to show gratitude towards students for successful ‘Grow with Water Project’ by enthusiastically participating.” and “We will continue making efforts to bring healthy changes to the society and inform the importance of healthy habit of drinking water.” Meanwhile, the ‘Grow with Water Project’ ad was highly appraised for its sincerity for actually spending 6 months to change teenagers’ habits of drinking clean water, which lead to winning awards from various ad contests. Specially, in November, our company received a grand prize in overall media sector at the ‘Korea Advertising Awards 2013’, where Korea Federation of Advertising Association evaluates all the advertisement campaigns that were aired in 2013.

IR WEBZINE 2013. December

Continuing ‘Digging Wells in Cambodia’ campaign for 8 consecutive years

Coway visited Phnom Penh and Kampot in Cambodia again to conduct the ‘digging wells’ campaign from November 25 through 30. In this campaign, 25 employees selected as excellent volunteers spent time in digging wells and repairing village, roads, and houses in the region. They also visited local schools to donate talents through art class activities, such as drawing pictures on puzzle and making clock, and held field day to play games, such as tug-of-war and running obstacle course. Moreover, 3,500 clothes and water bottle shaped portable purifiers prepared by the employees were donated to the locals. Since 2006, Coway has continued the ‘Digging Wells in Cambodia’ campaign as a global social contribution activity to contribute to solving water shortage and improving water quality. Cambodia is one of the poor countries where residents suffer from waterborne diseases by serious water shortage and contaminated water. Until now, as of November 2013, a total of 840 wells have been donated to the locals. Coway plans to expand the number of wells up to 1,000 in Cambodia by 2015.

- Completed 840 wells and plan to expand up to 1,000 wells by 2015 - Helped local children have dreams by improving water quality and offering art classes and field events

IR WEBZINE 2013. December

Launched a special edition Re:NK brand ‘Holiday Holic’ at Christmas

Coway launches a special edition Re:NK brand ‘Holiday Holic’ consisted of Radiance Color Cream sets for Christmas and year-end holidays. This new brand will be introduced on CJ O’ Shopping for 65 minutes on December 8. The package design symbolizes Christmas with red colors and flame to give glamorous and worm feeling. Starting in April of this year, the Radiance Color Cream aired 10 times on CJ O’ shopping channel and achieved total accumulated sales of 220,000 bottles, about KRW 10 billion, and became one of the popular home shopping products. The Radiance Color Cream is a multifunctional cream that improves skin texture and corrects skin tone to find natural skin color and self-radiating skin. This product contains Re:NK’s patented ionic water and hyaluronic acid ingredient to deliver plentiful moisture to the skin. In addition, this product contains fermented extract of 20 natural plants, such as Yeast, Leuconostoc, Apple, Carrot and other plants, fermented and aged by bacteria that grow in Japanese cedar. This special extract helps skin to recover natural color. Customers who purchase the ‘Holiday Holic Edition’ can receive the ‘K-serum Collaboration (60ml)’ product which was jointly developed with Hyun-jeong Ko, a famous actress in Korea. Joo-ok Lee, the brand manager of the Re:NK brand, said, “This edition was prepared to celebrate KRW10 billion mark in sales through home shopping channels and year-end holidays. It is perfect gift for someone special on the special day.”

IR WEBZINE 2013. December

‘CODY’ members to deliver rice to people in need with profits made from collecting used filters

On December 9, Coway announced that it would start a new contribution activity to donate rice to 1004 people in need every year. To this end, Coway’s own service specialist ‘CODY’ directly collects used filters and waste, through which saved logistics and labor costs are utilized for this activity. The first delivery to 1,004 people in need (two 10 kg sacks of rice each) will start in mid-December. Until now, filters and waste that came out during CODYs’ maintenance service have been sent to the recycling company for separation work. But, with the related department’s suggestion, CODYs started separating filters and waste on their own and sending them to the distribution center to reduce additional separation stage. The distribution center then sends the waste to waste management company and filters to recycling company to make resin. Shortening the treatment process helps the company achieve profits. Jong-bea Kim, the head of environmental home appliance division, said, “CODYs were united to vitalize recycling and expand sharing culture. I hope our donations will help our neighbors stay warm during year-end holidays.”

- Donated 2,008 sacks of ‘Rice of Love’ to 1,004 people in need (plan to conduct every year)

IR WEBZINE 2013. December

Sharp increase in sales of natural humidification air purifier thanks to ultrafine dust issues

Coway’s air purifier sales are skyrocketing thanks to recent ultrafine dust issues from China. In particularly, sales of natural humidification air purifier lineup increased 78% compared to the previous month. It seems to be related to increasing consumers’ needs on maintaining indoor air filtration and humidity. Especially, Cairs-branded natural humidification air purifier received great response from the consumers for having certified air filtration function and humidification at same time. The APM-0812DH (25.5m2) has led the increase of sales, which had received the CA mark and HH mark to certify air filtration and humidification function, respectively. This product has excellent air purification ability with the 5-step filtration system. By using anti-virus HEPA filter and containing extract of ginkgo leaf and Sumac, it effectively removes dust particles and harmful virus from the indoor air which causes respiratory disease. This product has obtained CA certification for its air filtering ability. Also, this product can humidify indoor area very safely because it uses natural vaporization method to send very small water particles in the air. This method makes it hard for virus or germs to spread with the water particle.

- Sales volume in November increased 78% compared to the previous month. - Ultrafine dust from China heightened the necessity of maintaining indoor air filtration and humidity.

IR WEBZINE 2013. December

Hosted the ‘Partners’ Day 2013’ for shared growth

On December 11, Coway invited representatives from partnering companies to host ‘Coway Family & Partners’ Day 2013’ at Ofelis building in Joong-gu, Seoul. The event was hosted to share this year’s cooperation results and promote continuous shared growth. Residents of Byeol Village in Haemi-myeon, Seosan, Choongnam, where the company together with its suppliers has a sisterhood relationship, were also invited to the event and had a good time to watch musical and cultural experience. In 2013, Coway has supported suppliers not only to improve their financial stability through operating win-win funds and interest-free financial aids, but also to strengthen competitiveness by providing various training programs such as CEO MBA. Win-win fund has been operated since 2010 and the volume was expanded from KRW 10 billion to KRW 20 billion this year to extend the boundary to the secondary suppliers.

- Shared this year’s cooperation results and promoted continuous shared growth - Included various programs to improve competitiveness

The CEO MBA program started this year in order to strengthen capabilities of suppliers’ CEOs, in which a total of 38 suppliers’ CEOs participated. This program includes comprehensive matters required for corporate management such as vision establishment, strategy, performance, innovation, and communication with members. And it will be held twice per year. Young-jin Choi, the head of SCM division, said, “We strive to expand the boundary of shared growth for the improvement of suppliers’ competitiveness and develop human resource. Through effective shared growth, we will grow our partnership based on mutual trust.” Meanwhile, Coway was selected as a member of the consortium to develop national human resources managed by the Ministry of Employment and Labor and operated by the Human Resource Development Service of Korea in August 2013 in recognition of its efforts for shared growth with suppliers.

IR WEBZINE 2013. December

Sharing love through delivering briquettes for 5 consecutive years

Coway employees including CODYs volunteered for delivering briquettes to people in need in Jwacheon-dong, Dong-gu, Busan, on December 16. This activity is a social contribution program that has held in Busan during every winter since 2009. Funds to purchase briquettes are raised for the year by CODYs in Busan and Gyeongsangnam-do areas. On this day, more than 150 employees, including the CEO Dong-hyun Kim, CODYs, and Homecare Doctors (Health control specialists), participated in the event and they donated about 28,000 briquettes to 90 households. Furthermore, 300 heads of Kimchi made by the employees were also given, creating warm and loving environment. Jong-bae Kim, the head of environmental home appliance division, said, “Briquette donation that CODYs and employees voluntarily had started has been spread to Incheon and other areas and continued for 5 years. We will continue leading activities that give hope to our society.”

- Donated 28,000 briquettes with funds raised for the year by CODYs - Donated 300 heads of Kimchi made by employees

IR WEBZINE 2013. December