COWAY (021240) Q4 2014 earnings summary

Executive summary

• Achieved record sales and profits in 2015, with revenue up 7.2% and operating profit up 27.1% year-over-year.

• Maintained strong market leadership in water purifiers, air purifiers, and bidets, with rental and membership accounts reaching 5.77 million.

• Expanded IoT-enabled product lines and enhanced service capabilities, contributing to customer retention and growth.

• Overseas business, especially in Malaysia and the US, showed robust growth in rental accounts and revenue.

Financial highlights

• 2015 consolidated revenue: ₩2,315.2 billion, up 7.2% year-over-year.

• Operating profit: ₩463.3 billion, up 27.1% year-over-year; operating margin reached 20.0%.

• Net income attributable to controlling interests: ₩343.1 billion, up 37.4% year-over-year.

• Total assets: ₩1,775.4 billion; equity: ₩1,238.2 billion; liabilities: ₩537.2 billion.

• Dividend per share: ₩2,800 (cash), payout ratio approx. 61%.

Outlook and guidance

• 2016 targets: revenue ₩2,560 billion, operating profit ₩499 billion, aiming for another record year.

• Focus on expanding premium and IoT product lines, strengthening domestic and overseas rental business, and diversifying sales channels.