Slides
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Public Disclosure IR Team May. 09, 2025 Indefinite 1Q`25 Earnings release May. 09. 2025
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3 This presentation contains historical information of the company which should not be regarded as an indication of the future performance or results. This presentation also contains forward-looking statements that are, by the nature, subject to significant risks and uncertainties. These forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance or results. Actual results may differ materially from information contained in the forward-looking statements as a results of a number of factors beyond our control. DISCLAIMER
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4 Contents 1. 1Q`25 Earning release 2. Domestic business 3. Overseas business • Key Highlights • Total rental accounts • Consolidated revenue & profits • Revenue & accounts • Rental gross adds & net adds • Revenue & accounts • Malaysia • U.S. & Thailand ※ Appendix • Progress of Value-up initiatives • Consolidated financial reports • Major subsidiaries results
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1-1. Key Highlights - Achieved historical high in quarterly revenue with a solid +10.8% YoY growth - Reached record- high sales in major product categories, supported by strong double-digit YoY growth - Delivered strong rental net adds driven by robust sales expansion and low cancellation rate - Malaysia: Delivered robust revenue growth +22.0% YoY, driven by double-digit expansion in rental sales - U.S.: Achieved a turnaround to operating profit with strong revenue growth of +33.7%, supported by direct channel sales - Thailand: Expanded operating profit alongside revenue growth of +43.9% YoY, due to increased sales of air purifiers 2. Domestic business 3. Overseas subsidiaries - Recorded double-digit revenue growth of +17.3% YoY, driven by strong sales momentum, resulting in a historical high in quarterly performance - Achieved historical high in both quarterly revenue and operating profit - Reached 26% of annual guidance for revenue and 25% for operating profit 1. Consolidated record
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6 1-2. Total rental accounts 1Q`25 Total rental accounts recorded 10.6mn (+8.5% YoY) Continued growth of overseas proportion to 36% Total rental account • 1Q`25 Total rental account10.6mn (+8.5% YoY) - Domestic 6.82mn (+6.3% YoY) - Overseas 3.76mn (+12.7% YoY) 1,802k 2,440k 2,945k 3,274k 3,340k 3,763k 5,809k 6,018k 6,156k 6,349k 6,412k 6,815k 2020 2021 2022 2023 2024 1Q`24 1Q`25 24% 3,621k 34% 36%35% 29% 32% 34% 7,611k 9,100k 10,333k9,623k+7.6% +7.4% +11.1% +5.7% 8,458k 6,712k 9,753k 10,580k +8.5% Domestic Overseas Overseas Proportion [Unit: Accounts]
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7 1-3. Consolidated revenue and profits Revenue Operating profit Net profit 1Q`25 Revenue KRW 1,174.9bn (+17.3% YoY), Operating Profit KRW 211.2bn (+ 9.0% YoY), Net Profit KRW 138.8bn (+8.8% YoY) -Historical high quarterly Revenue and Operating profit 1,001.8 1,174.9 1Q`24 1Q`25 193.7 211.2 19.3% 18.0% 1Q`24 1Q`25 127.7 138.8 12.7% 11.8% 1Q`24 1Q`25 +17.3% +9.0% +8.8% [Unit: KRW bn/ : Margin][Unit: KRW bn] [Unit: KRW bn/ : Margin]
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88 2-1. Domestic business Accounts Domestic business historical high quarterly revenue KRW678.6bn (+10.8% YoY) Stable growth in total accounts 7.22mn (+5.3% YoY) • 1Q`25 Total accounts 7.22mn - Rental accounts: 6.82mn (+403k, +6.3% YoY) - Membership accounts: 400k (-40k, -9.3% YoY) • 1Q`25 Domestic business revenue KRW 678.6bn - Rental (Operating, Financial) revenue KRW 678.6bn (+10.8% YoY) - Others (Membership, Lump-sum) revenue KRW31.4bn (-0.8% YoY) : Revenue growth driven by strong rental gross adds Revenue 40% 32% 39% 49% Financial lease portion(Rental)Rental Etc. [Unit: KRW bn] 41% 52% Financial lease portion(Rental)Rental Membership [Unit: Accounts] 40% 54% 1Q`24 1Q`25 57% 47% +10.8% 678.6 612.3 440k 400K 1Q`24 1Q`25 50% 40% 7,215k 6,815k 6,412k 6,852k +5.3%
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99 • 1Q`25 Rental net adds 103k - 1Q`25 Rental net adds 103k (+63.0% YoY, -12.3% QoQ) : Continued expansion in rental net adds, supported by robust sales momentum and a decrease in the cancellation rate Rental net addsRental gross adds1) • 1Q`25 Rental gross adds 473k - 1Q`25 Rental gross adds 473k (+14.1% YoY, +11.3% QoQ) : Sales growth supported by offering customer-friendly sales options : Solid sales across all core product categories (water purifier / air purifier/ bidet / BEREX) Historical high quarterly rental gross adds 473k (+14.1% Y oY) Recorded rental net adds 103k(+63.0% Y oY) [Unit: EA] [Unit: Accounts]Financial lease portion(Rental) 1) Including financial lease sales : Applies to all gross adds in this material 2-2. Domestic business 63k 79k 1Q`24 2Q`24 3Q`24 4Q`24 1Q`25 2023 2024 102k 118k 103k 193k 363k 1Q`24 2Q`24 3Q`24 4Q`24 1Q`25 2023 2024 51% 57% 62% 62% 414k 449k 426k 425k 66% 473k 1,502k 1,714k 52% 58%
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10 3-1. Overseas business Overseas subsidiaries revenue KRW 446.7bn (+25.8% YoY) Continued growth of total overseas accounts 3.90mn (+11.4% YoY) AccountsRevenue • 1Q`25 Overseas subsidiaries revenue KRW 446.7bn - 1Q`25 Overseas subsidiaries revenue: KRW 446.7bn (+25.8% YoY) : Revenue growth led by strong performance of key overseas subsidiaries • 1Q`25 Total overseas accounts3.90mn - Continues growth in overseas subsidiaries accounts in Malaysia, U.S., Thailand, etc. [Unit: KRW bn] [Unit: Accounts] 1Q`24 1Q`25 3,498k +11.4% 3,897k 355.1 446.7 1Q`24 1Q`25 +25.8%
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11 3-2. Overseas business Malaysia revenue KRW 328.9bn(+22.0% YoY) Continued stable growth of total accounts 3.31mn(+8.7% YoY) Malaysia Accounts • 1Q`25 Malaysia revenue KRW 328.9bn, OPM 15.6% - Sales up 23% on strong demand for water purifiers and home care products (mattresses, massage chairs, and air conditioners) - Operating margin declined due to promotional efforts to address competition • 1Q`25 Malaysia Total accounts 3.31mn - Rental accounts 3.21mn (+290k, +9.9% YoY) - Membership accounts 103k (-26k, -20.2% YoY) [Unit: KRW bn / : Margin] [Unit: Accounts]Rental Membership 2,918k 3,208k 130k 103k 1Q`24 1Q`25 3,048k 3,311k +8.7% 46.7 51.4 17.3% 15.6% 1Q'24 1Q'25 269.8 328.9 1Q`24 1Q`25 +10.0% +22.0% Revenue OP
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12 3-3. Overseas business U.S. revenue KRW 60.0bn(+33.7% YoY) Thailand revenue KRW 42.9bn(+43.9% YoY) • 1Q`25 U.S. revenue KRW 60.0bn, OP turned to surplus - Operating profit turned positive due to strong revenue growth in direct and retail channels - Air purifier sales surge in response to worsening air quality and wildfire impacts • 1Q`25 Thailand revenue KRW42.9bn, OPM 3.2% - Revenue growth accelerates as air purifier sales rise due to fine dust air pollution - Operating profit increased driven by rental account and sales growth U.S. Revenue OP [Unit: KRW bn / : Margin] [Unit: KRW bn / : Margin] Thailand 120 K 120 K 120 K -1.3 1Q`24 1Q`25 1.8 Turned to a profit 0.4 1.4 1.3% 3.2% 1Q`24 1Q`25 3.0% 44.9 60.0 1Q`24 1Q`25 29.8 42.9 1Q`24 1Q`25 +33.7% +43.9% +245.8% Revenue OP
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13 APPENDIX • Progress of Value-up initiatives • Consolidated financial reports • Major subsidiaries results
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14 APPENDIX. Progress of Value-up initiatives Establishment of a Compensation CommitteeDecision to acquire treasury stock - As part of the implementation of the value-up plan disclosure, the BOD resolved to acquire KRW 110bn worth of treasury stock to enhance corporate value and maximize shareholder benefits - The decision reflects the Board’s strong commitment to stabilizing the stock price and enhancing shareholder returns in response to increased volatility from U.S. tariffs - The company plans to continue strengthening market confidence and shareholder-friendly policies, along with strategic execution for sustainable growth - The Compensation Committee was established through a board resolution to enhance the fairness and transparency of decision - making regarding executive compensation - The Compensation Committee is composed of 3 outside directors, ensures independence and objectivity in the review of executive compensation - The Compensation Committee is scheduled to review the compensation of inside directors, determine executive incentive resources, and review executive compensation related systems - The company plans to strengthen compensation -related governance, promote stakeholder trust, and enhance long -term corporate value through the operation of the Compensation Committee ① Decision to acquire treasury stocks of KRW 110bn to enhance corporate value and maximize shareholder returns ② Establishment of a Compensation Committee composed of independent directors to ensure a transparent and fair compensation system and enhance stakeholder trust Details of Treasury Stock Acquisition Amount KRW 110bn Period 2025. 05. 09 ~ 2025. 12. 26 Purpose Stabilizing share price & enhancing shareholder value
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15 Consolidated financial reports ·Balance Sheet · Income Statement (Unit: KRW bn) Mar. ’25 Mar. ’24 <Assets> 6,014.5 5,761.6 Current Assets 1,852.2 1,771.0 Cash and cash equivalents 110.7 129.0 Accounts receivable 216.4 212.1 Financial lease receivable 1,172.8 1,109.7 Inventories 264.7 240.1 Non-Current Assets 4,162.3 3,990.6 Fixed assets 1,029.8 1,037.6 Intangible assets 191.7 191.3 Finance lease receivables 2,649.2 2,496.5 <Liabilities> 2,863.1 2,565.4 Current Liabilities 2,031.3 1,878.0 ST Borrowings 519.2 465.0 Current portion of bonds 149.9 230.0 Current portion of LT borrowings 122.6 130.5 Non-Current Liabilities 836.6 687.5 LT Borrowings 28.2 42.6 Corporate bond 648.7 499.3 <Shareholders’ Equity> 3,153.7 3,196.1 Debt to Equity Ratio 90.8% 80.3% Net Debt to Equity Ratio 43.1% 38.7% (Unit: KRW bn) 1Q`25 1Q’24 YoY Revenue 1,174.9 1,001.8 17.3% COGS 418.6 347.8 20.4% Gross profits 756.3 654.1 15.6% SG&A 545.0 460.3 18.4% Operating profits 211.2 193.7 9.0% Margin(%) 18.0% 19.3% -1.4%p Other income 17.0 21.4 -20.3% Other expenses 15.5 22.8 -32.5% Financial income 1.0 2.3 -55.6% Financial expenses 16.5 14.5 14.0% Profit before tax 195.2 179.2 9.0% Corporate tax 56.4 51.5 9.6% Net income 138.8 127.7 8.8% Margin(%) 11.8% 12.7% -0.9%p
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(Unit: KRW bn) 1Q`25 1Q’24 YoY Malaysia Revenue 328.9 269.6 22.0% OP 51.4 46.7 10.0% Margin 15.6% 17.3% -1.7%p U.S. Revenue 60.0 44.9 33.7% OP 1.8 -1.3 Turned to a profit Margin 3.0% - China Revenue 0.8 0.8 6.8% OP -0.2 -0.1 - Margin - - Thailand Revenue 42.9 29.8 43.9% OP 1.4 0.4 245.8% Margin - - Indonesia Revenue 11.0 5.3 105.6% OP -0.6 -1.3 - Margin - - Vietnam Revenue 1.0 1.0 0.7% OP -0.7 -1.0 - Margin - - Coway Entech Revenue 17.5 13.0 34.1% OP -0.7 0.5 Turned to a loss Margin - 3.8% BEREX Tech Revenue 25.2 19.7 28.0% OP 2.5 1.5 71.8% Margin 10.1% 7.5% Major subsidiaries results Malaysia U.S. China Thailand Coway Entech Indonesia Vietnam BEREX Tech : Revenue growth and operating profit turned profitable due to increased direct and retail channel sales : Efforts underway to ensure stable and sustainable growth : Revenue growth accelerated by strong air purifier sales performance : Robust growth momentum sustained through organizational expansion and rising sales : Ongoing efforts to secure stable market presence and growth : Posted a quarterly loss in 1Q due to one-off expenses : Revenue and operating profit growth driven by expanded supply in Korea and Malaysia and improved cost ratios. : Strong revenue growth led by increased sales of water purifiers and home care products