COWAY

- In its Corporate Value-Up Plan, Coway has identified four key indicators to enhance sustainable shareholder value: continuous growth, shareholder returns improvement, strengthened financial stability and governance sophistication. - The company aims to generate revenue of over KRW 5 trillion in 2027 through core business expansion, new brand development and new business initiatives. - A total shareholder return rate of 40% will be maintained for three years by means of cash dividends, and acquisition and retirement of treasury stocks. - Coway will also manage its net debt-to-EBIT ratio up to 2.5 and will reinforce sophistication of governance. Seoul, South Korea, February 18th, 2025 – Coway Co., Ltd., the “Best Life Solution Company,” has officially launched its Corporate Value-Up Plan, reaffirming its commitment to the sustainable enhancement of shareholder value. Following the announcement last month of increasing its total shareholder return rate from 20% to 40%, Coway is now introducing additional strategic initiatives aimed at bolstering corporate value. In a board meeting held on February 13th, Coway identified four key indicators for enhancing sustainable shareholder value: continuous growth, shareholder returns improvement, appropriate capital structure, and governance sophistication. Based on these indicators, the company has formalized its corporate value enhancement strategy, namely its Corporate Value-Up Plan. Driving Continuous Growth: Setting Revenue Goals Exceeding KRW 5 Trillion in 2027 Coway is aiming for a compound annual growth rate (CAGR) of 6.5% from 2025 to 2027, with the goal of exceeding KRW 5 trillion in revenue in 2027. To achieve this target, the company will focus on core business advancements, global business expansion, new brand growth and new business initiatives. Coway plans to enter new markets and establish local subsidiaries, implementing tailored marketing strategies in order to enhance global brand recognition. The company will also develop localized products and services to strengthen its competitiveness within the global market. Coway will also expand its product lineups and enhance its customer experience marketing through its sleep and wellness brand, BEREX. The company aims to increase its offline channel offering in order to strengthen customer experience in South Korea, as well as to enhance overall BEREX brand awareness through targeted marketing campaigns. Furthermore, Coway is set to enter the silver care (elderly care) sector in South Korea in order to explore various new business opportunities for sustainable growth. Through its new subsidiary Coway Life Solutions, established in October of 2024, the company will introduce next-generation elder care services within the first half of 2025. Coway will also be actively pursuing strategic partnerships and technological collaborations to further expand new business opportunities. Coway will continue to enhance its core offerings by developing innovative products and expanding its investments in R&D, IT, marketing, and consumer services. The company will also drive advancements in the digital space in order to strengthen its channel competitiveness and operational efficiency.  Improving Shareholder Returns: Increasing the Total Shareholder Return Rate to 40% Coway is committed to balancing sustainable shareholder returns, corporate growth, and financial stability by maintaining a well-balanced allocation between shareholder returns and reinvestments in future growth. The company will significantly increase its total shareholder return rate from the previous 20% of consolidated net income to 40%. This includes cash dividends and treasury stock purchase/retirement. Specifically, in FY2024, Coway will allocate 33% to cash dividends and 7% to treasury stock purchase/retirement, based on the 40% total shareholder return ratio. From FY2025 to FY2027, the company will maintain the 40% shareholder return rate while adjusting the proportion of cash dividends and treasury stock purchase/retirement in consideration of total shareholder return. A Coway official stated, "The 40% shareholder return rate was derived by forecasting actual expected cash inflows and outflows from this year through 2027. Based on these projections, we identified an optimal balance between operating cash flow and financial leverage while also considering various factors, such as the balance between shareholder returns and investments for future growth.” Optimized Capital Structure: Maintaining an Appropriate Net Debt-to-EBIT Ratio Coway has also established new financial guidelines designed to ensure the company’s financial stability. Coway plans to utilize an appropriate level of financial leverage, taking into account its repayment capabilities based on operating performance and accelerating the timing of shareholder returns on investment outcomes. Accordingly, the company plans to manage its net debt-to-EBIT ratio up to 2.5 to ensure financial stability while keeping financial burdens at a manageable level. Enhanced Governance: Strengthening Board Independence and Diversity Coway is committed to advancing its corporate governance practices. The company will seek to raise its key governance indicator from 53% in 2024 to 87% by 2026, significantly exceeding the 2023 market average of 49.5%. Key governance indicators, particularly those related to shareholder interests, will be prioritized for improvement. Coway is committed to further enhancing the independence of its board of directors (BoD) while promoting greater diversity. Since 2023, the company has implemented board independence guidelines to strengthen transparency and accountability. Going forward, Coway plans to increase both the number and proportion of outside directors and appoint highly qualified individuals with diverse expertise to advance corporate governance standards. “Coway’s Corporate Value-Up Plan provides a robust foundation for sustainable growth, benefiting both the company and its shareholders,” said Jangwon Seo, CEO of Coway. “We are committed to reinforcing shareholder-friendly management while simultaneously implementing a range of strategies aimed at enhancing corporate value and securing sustainable growth.” For additional details about Coway's Corporate Value-Up Plan, please visit the company's Investor Relations page. About Coway Co., Ltd. Established in Korea in 1989, Coway, the "Best Life Solution Company," is a leading environmental home appliances company making people's lives healthy and comfortable with innovative home appliances such as water purifiers, air purifiers, bidets, and mattresses. The company's most recent venture, the BEREX brand, aims to improve sleep and wellness through cutting-edge mattresses and massage chairs. Since being founded, Coway has become a leader in the environmental home appliances industry, with intensive research, engineering, development, and customer service. The company has proven dedication to innovation with award-winning products, home health expertise, unrivaled market share, customer satisfaction, and brand recognition. Coway continues to innovate by diversifying product lines and accelerating overseas business in Malaysia, USA, Thailand, China, Indonesia, Vietnam, Japan, and Europe, based on the business success in Korea. For more information, please visit  http://www.coway.com/  or  http://newsroom.coway.com .

-  Coway’s 2024 Q4 revenue reached KRW 1,125.7 billion (+12.1% YoY) with an operating profit amounted to KRW 183.4 billion (+10.4% YoY) -  The company’s FY2024 annual revenue totaled KRW 4,310.1 billion (+8.7% YoY) with an operating profit of KRW 795.4 billion (+8.8% YoY) -  Coway plans to drive steady growth in 2025 by accelerating its ‘New Coway’ strategy   SEOUL, South Korea, February 14, 2024  – Coway Co., Ltd., the “Best Life Solution Company,” has released its financial results for the fourth quarter and fiscal year 2024.   “We’re pleased to have delivered stable performance across both domestic and international markets in 2024, even amid challenging business environments,” stated Jangwon Seo, CEO of Coway. “This success was driven by our disciplined management approach and our commitment to expanding R&D. Looking ahead, as we accelerate our ‘New Coway’ strategy, we will focus on developing differentiated, innovative products and expanding our global footprint to drive sustained growth.”   Coway reported the following earnings:   -        Fourth-quarter revenue: KRW 1,125.7 billion (+12.1% YoY) -        Fourth-quarter operating profit: KRW 183.4 billion (+10.4% YoY) -        Annual revenue: KRW 4,310.1 billion (+8.7% YoY) -        Annual operating profit: KRW 795.4 billion (+8.8% YoY) *The reported figures are taken from the consolidated K-IFRS (International Financial Reporting Standards) statement.   In 2024, Coway’s domestic business recorded a revenue of KRW 2,581.7 billion, marking an 8.8% increase compared to the previous year. This growth was driven by the strong sales of key products such as water purifiers, air purifiers and bidets, as well as the expanding sales of the high-growth BEREX brand.   Coway’s overseas subsidiaries reported an annual revenue of KRW 1,545.2 billion in 2024, showing an 8.0% increase compared to the prior year. In Malaysia, annual revenue saw a 6.6% increase from the previous year to reach KRW 1,158.4 billion, while the United States subsidiary recorded an annual revenue of KRW 214.2 billion, up 4.4% from 2023, and Thailand recorded an impressive year-over-year growth of 24.3% and a KRW 125.7 billion annual revenue.   Coway announced that it has decided upon a year-end cash dividend of KRW 2,630 per share as a year-end dividend. The total dividend payout amounts to KRW 189.1 billion, representing a 93% increase compared to the previous year’s total dividend of KRW 98.0 billion (KRW 1,350 per share).   In addition, Coway will unveil its 'Corporate Value-Up Program,' with the key focus being the expansion of the shareholder return ratio from the previous 20% to 40% over the next three years. This plan includes measures such as cash dividends and cancellation of treasury shares.   For additional details about Coway's financial performance, please visit the company's  Investor Relations  page.  

- Align Partners submitted its shareholder's proposal through Seoul-based law firm Hannuri Law LLC on January 7th, 2025 - The shareholder's proposal includes a demand for the dividend rate expected to account for 90% of consolidated net income - Coway plans to propose its own agenda for shareholder return rate based on the finalization of the company's financial statements, the progress of external audit, and the company's proposed shareholder return rate of 40%, separate from the shareholder's proposal SEOUL, South Korea, Jan. 23, 2025  - Coway Co., Ltd., the "Best Life Solution Company," has issued an official response to the shareholder's proposal of Align Partners Capital Management Inc. ("Align Partners").   Align Partners submitted its proposal to Coway via Seoul-based law firm Hannuri Law LLC on January 7th, before issuing its public shareholder letter on January 16th, 2025. The company then issued a response to the shareholder's proposal through Align Partners' law firm, Hannuri, on January 21st and simultaneously posted the response on  the company's investor relations (IR) website . The shareholder's proposal requested a dividend rate that represents approximately 90% of the company's consolidated net income. This figure significantly exceeds the target shareholder return rate of 40% as outlined in Coway's shareholder return policy announced on January 6th, which takes into consideration the company's financial stability and long-term growth. In its response, Coway reported the receipt of Align Partners' 90% dividend rate proposal and the details thereof to its board of directors and plans to submit it to the general meeting of shareholders as per due process. The company also stated that its own agenda on a shareholder return rate will be determined and submitted separately, following a comprehensive consideration of finalized financial statements, the progress of an external audit, and the company's proposed shareholder return rate of 40% as recently announced through its fair disclosure. Jangwon Seo, CEO of Coway, said, "We will make every effort to maximize shareholder value through continuous performance generation, and we ask for your continued trust and support for the company's sustained growth." About Coway Co., Ltd. Established in Korea in 1989, Coway, the "Best Life Solution Company," is a leading environmental home appliances company making people's lives healthy and comfortable with innovative home appliances such as water purifiers, air purifiers, bidets, and mattresses. The company's most recent venture, the BEREX brand, aims to improve sleep and wellness through cutting-edge mattresses and massage chairs. Since being founded, Coway has become a leader in the environmental home appliances industry, with intensive research, engineering, development, and customer service. The company has proven dedication to innovation with award-winning products, home health expertise, unrivaled market share, customer satisfaction, and brand recognition. Coway continues to innovate by diversifying product lines and accelerating overseas business in Malaysia, USA, Thailand, China, Indonesia, Vietnam, Japan, and Europe, based on the business success in Korea. For more information, please visit  http://www.coway.com/  or  http://newsroom.coway.com .