coway

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Economic

Organizational Scope

Financial Data

Summary of Consolidated Financial Statements(based on K-IFRS) (Unit : KRW Won)

Category	2014	2015	2016
Non-current assets	1,024,838,930,313	1,122,079,124,795	1,234,573,817,352
Current assets	596,810,515,755	653,318,017,710	733,134,075,994
Total Assets	1,621,649,446,068	1,775,397,142,505	1,967,707,893,346
Share capital	40,662,398,000	40,662,398,000	40,662,398,000
Share premium	97,773,449,148	97,773,449,148	97,773,449,148
Retained earnings	985,875,249,525	1,177,049,753,285	1,179,735,672,647
Other equity items	-85,768,352,752	-78,122,382,059	-135,356,489,548
Non-controlling interest	892,285,334	864,612,421	528,728,310
Total shareholders' equity	1,039,435,029,255	1,238,227,830,795	1,183,343,758,557
Non-current liabilities	56,173,184,972	64,287,230,555	48,973,368,952
Current liabilities	526,041,231,841	472,882,081,155	735,390,765,837
Total liability	582,214,416,813	537,169,311,710	784,364,134,789

Summary of Income Statement(based on K-IFRS) (Unit : KRW Won)

Category	2014	2015	2016
Sales	2,160,315,530,683	2,315,242,282,662	2,376,328,167,259
Cost of sales	726,567,159,312	728,843,092,565	812,176,526,166
Gross income	1,433,748,371,371	1,586,399,190,097	1,564,151,641,093
Selling and administrative expenses	1,069,319,801,501	1,123,060,003,421	1,225,354,188,064
Operating income	364,428,569,870	463,339,186,676	338,797,453,029
Other gains	17,610,070,502	24,447,251,232	28,737,581,966
Other expenses	40,697,496,626	30,407,140,043	38,890,265,528
Finance income	2,703,459,518	1,423,176,277	1,212,324,916
Finance costs	11,598,016,713	4,339,055,128	6,103,169,863
Net income before income tax	332,446,586,551	454,463,419,014	323,753,924,520
Income tax	82,778,174,443	111,343,034,229	80,442,692,413
Net income	249,668,412,108	343,120,384,785	243,311,232,107
Other comprehensive income	-8,567,485,642	-8,832,592,426	-804,069,601
Total comprehensive income for the year	241,100,926,466	334,287,792,359	242,507,162,506

Comparison of New Employees’ Remuneration and the Legal Minimum

Category		2014	2015	2016
New Employee Monthly Wages Compared to the Legal Minimum	Legal Minimum Wage(monthly, KRW 10,000)	108.8	116.6	126.0
	New Employee Wages(monthly, KRW 10,000)	307.5	316.7	316.7
	Rate(%)	282	272	251

Research and Development Status

Category	Unit	2014	2015	2016
R&D Expense	KRW million	31,775	34,029	36,520
R&D Cost Proportion (vs Sales)		1.47%	1.47%	1.54%

Features of Resource Procurement

Coway has been successful in producing most of the parts it requires in Korea through constant R&D efforts by the company’s Environmental Technology Institute and Quality Management Institute, or by purchasing them from numerous suppliers within Korea. Today, the company is also equipped with automatic production lines for filters. Furthermore, core parts used for water purifiers are ultra-precision filters, so competitors have had to work hard to increase the number of more technologically advanced products they produce in Korea to keep up with Coway.

Coway’s Supply Chain

Coway engages in trade with a total of 273 suppliers in order to procure raw materials and parts for manufacturing products. In 2016, Coway purchased approximately KRW 50.90 billion worth of parts and materials for production.

Category		2014	2015	2016
No. of Suppliers	Total	224	288	273
	Tier 1 suppliers	151	193	178
	Tier 2 suppliers	73	95	95

Intellectual properties (2016)

Total	Patents	Utility models	Brands (Including overseas)	Designs (Including overseas)
3,940	718	182	2,244	796

Economic Performance Creation and Distribution (2016)

Total (KRW ten million)	Government	Shareholder	Employees	Communities	Suppliers
98,952	Income taxes	Dividends	Wages, bonuses, employee benefits, etc.	Social contribution expenses	Purchase cost of raw materials
98,952	8,044	20,803	33,168	63	36,874