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Smarter Living Environment Partner, KD Navien O N E R O A D ,

O N E H E R I T A G E

Great Heritage preserving Energy and Environment, creating the right path

Introduction of KD Navien

C O N T E N T S

KD Navien’s response to Energy KD Navien’s pride in technology Korea’s No. 1 recognized KD Navien fulfilling social and Environment that brings creativity by Global Market responsibility for better tomorrow

R E S P O N S E O R I G I N A L I T Y A C H I E V E M E N T D R E A M KD Navien’s R E S P O N S E To Energy and Environment 1951

Musan briquet factory MuSan, the name chosen in the hope that mountains would be covered opening in ruins in Korean rich with woods by reducing the use of firewood. postwar In those days when it was extremely hard to survive cold winter, KyungDong’s journey had started at this small factory making and selling 茂山 good quality briquet. 1978

The beginning of the great In the 1970s that suffered twice from oil crisis, KD Navien which took its dream opening the era of first step with the name of KyungDong machinery during this global zero energy energy crisis, presented a new way to Korean heating industry by launching an all-in-one quadrangle boiler, which was the first residential boiler in domestic market. 1988

The first condensing KD Navien developed the first condensing boiler in Asia with the belief boiler in Asia that condensing is the right way, and with the principle of preserving energy and environment, and been continuing its sole path with condensing technology despite the market ignorance and numerous interference from competitors 1991

Development of artificial KD Navien has successfully developed and supplied the first artificial soil soil creating urban in Korea to purify air pollution in populous cities and is improving urban ecological greenery environment to breath by greenery project utilizing the forsaken area. 1998

Development of the KD Navien successfully developed the world’s first stainless steel heat stainless steel in the hope that warm temperature will long last to bring exchanger that has happiness in life and changed the standard of value for by become the world launching KC condensing gas boiler. standard 2003

Home network system that Towards the future that sets an optimal living environment by itself, provides smart lifestyle KD Navien took its first step towards smart lifestyle with ‘e-家’ home network system that remotely controls various household appliances. 2006

Leaping from a boiler KD Navien had changed to its current name meaning ‘navigator of specialist to a living energy and environment’ to set its goal of providing smarter living environment creator environment, and accelerated its expansion to overseas market whilst expanding its business to various products such as ventilation system. 2008

Dreaming of being a KD Navien, which entered the global market with its differentiated world top company condensing technology, launched condensing gas water heater in the beyond Korea No. 1 US market as first in the industry and successfully entered the Russian boiler market via thorough localization of products. 2012

Attracting global Our commitment to technology to meet the customers’ needs for customers with quality and smarter living environment technology KD Navien has become a market trend with premium condensing gas water heater ‘NPE’ and condensing gas boiler ‘NCB’ in the market based on high efficient eco-friendly concept. 2015

Getting one step closer to KD Navien launched an household appliance that helps customers with customers with premium comfortable sleep by individually adjustable temperature and energy bed warming mattress saving, and opened a new category of ‘premium’ in hot water mattress (hot water mat) market. 2019

New alternative to KD Navien introduces TAC(Total Air Care) solution to protect living environmental issue, TAC environment against air pollution, starting with Navien Air-One purifying ventilator that manages the quality of air in the house by filtering out fine dust and pollution. KD Navien is evolving into a smarter living environment partner through high efficient and eco-friendly energy technology.

Business Area

Boiler Water Heater Total Air Care Hot Water Home IoT Mattress To be a socially contributing company To fulfill our ultimate mission for energy and environment

Social Contribution Through Corporate

Our Social Responsibility

We not only fulfill corporate responsibility as a member of society but also continuously try to develop products and services that society and community need. This is KD Navien’s philosophy; ‘Social Contribution through corporate’ To leap to our mission to be a ‘navigator of energy saving and environment protection’

Navigator of energy and environment

NAVIEN

Navigator Energy Environment KD Navien is getting a step closer to your from a world-class heating specialist to a smarter living environment partner

Smarter living environment partner

Smarter Living Environment Partner O R I G I N A L I T Y

KD Navien’s pride in technology that brings its own identity Technological Innovation KD Navien brings innovative technology

Eco Technology Total Air Care NTC Technology

Environmentally Total solution for air care Technology for a separate friendly condensing in living environment and adaptive heating control technology

Home IoT Cascade System Hope network that enables a Technology that brings high remote control of an appliance efficiency for commercial use outside home T E C H N O L O G I C A L I N N O V ATI O N

Conventional boiler Condensing technology technology

℃ High temperature over 120 Max Low temperature at about Environmentally Friendly exhaust gas and vapor 45 ℃ exhaust gas emitted emitted 28.4% Condensing Technology Saves fuel cost by up to 28.4% compared to conventional boiler

Burner

KD Navien provides answers to save energy and improve Return Supply the quality of air through condensing technology that water water Heat exchanger Heat exchanger E utilizes the from exhaust gas produced from X Supply combustion. water H

A Latent heat exchanger U Burner Return water S

T

G.

NOx CO2 Pine Tree Condensate A Approx. 79% reduced 576kg per year Effect equivalent to S reduced planting 208 trees per year

•Ministry of knowledge and economy, korea energy agency 2011 energy labeling scheme T E C H N O L O G I C A L I N N O V ATI O N

HEPA Filter (H13) filters over 99% of ultrafine dust below Navien Airone 0.3μm Providing Ventilation and air purification Deodorizing filter at the same time, Navien Airone filters bad smell and pollution

4 stage Electronic HEPA filter filters 98.6% of fine dust 4-stage filter system brings a clean and comfortable living

environment by filtering out carbon dioxide, VOCs(volatile organic Pre filter compounds), ultrafine dust of 0.3㎛, not to mention indoor pollution, filters large dust odor inside the house * The above image is intended to facilitate your understanding, so it may differ from usage in an actual environment

Electronic HEPA Testing institution : Korean construction life environment research Testing standard : KS filter B6141 [Filtering unit for ventillation] “Filtering over 98.6% fine dust” means fine dust in size of 0.3 ㎛, and applies only to the air side filter Inflow of air outside Discharge of Purification of air - Filtering is calculated by comparing the number of fine dust before/after air passes polluted air inside inside through the filter brings clean air inside - Dust tested : 0.3 ㎛ Potassium chloride, air flow rate 3.33㎥/ min [200CMH] Discharges smell and HEPA Filter Testing institution : Korean construction life environment research Testing standard : KS Removes fine dust inside, (H13) B6141 [Filtering unit for ventillation] pollution to outdoor keeps air fresh inside - “Filtering over 98.6% fine dust” means fine dust in size of 0.3 ㎛, and applies only to the air side filter - Filtering is calculated by comparing the number of fine dust before/after air passes through the filter - Dust tested : 0.3 ㎛ Potassium chloride, air flow rate 3.33㎥/ min [200CMH] T E C H N O L O G I C A L I N N O V ATI O N

Navien Mate

Safe and Healthy sleep with comfort

KD Navien's 40-year boiler technology not only implements uniform and precise temperature but also provides pleasant sleep everyday with the safe and convenient features that helps with sleeping comfort.

Max. 33°C 37°C 40% Quick heating Separated heating Smart IoT implements warmth control temperature remote control with quicker than previous by 1℃ smart phone application model for left and right side through WIFI T E C H N O L O G I C A L I N N O V ATI O N

Home IoT

Most advanced control technology integrated with Home network system

KD Navien presents optimum smart-home living environment through IoT technology which remotely controls household appliances with smart-phone application.

Control Security Control cooling and Home-view, security, heating, lightings, gas intrusion detection valve

One Stop Solution T E C H N O L O G I C A L I N N O V ATI O N

Cascade System HOT WATER Highly efficient energy solution for commercial buildings

FLOOR HEATING

KD Navien suggests cascade technology, which provides hot water needed for commercial buildings from multiple-small gas boilers or water heaters installed in parallel, as a commercial energy solution.

CASCADE SYSTEM

31% 60% 24 hours

Reduces energy, gas bill Better use of space Remote care system

•‘Energy saving’ awarded in the 20th ‘Energy winner Awards in 2017

•Compared to conventional medium-large boiler Quality Management KD Navien pursues perfect quality.

KD Navien's Research and Seotan Factory Development

The world largest cutting-edge Continuous investment automation factory in R&D KD Navien's Seotan Factory

• Facility Scale of estate : 132,200m2

• Capability The largest boiler production plant on a single site (annual production capacity of 2 million units)

• Quality Automated assembly, inspection and logistic system KD Navien is leading Korean boiler industry with top class technology and quality among global competitors

Cutting-edge global production base KD Navien Seotan Factory KD Navien does not fear failures because they can be an investment for better future 5.12% INVE STMENT Ratio of R&D to annual revenue * (Consolidated)

Human Investment Resource R&D

245 843 RESEARCHER PATENTS Most R&D people Number of patents** in industry filed for application (As of June, 2019) Patent

* R&D Expense : ordinary development expense + R&D people salary + other expense in R&D center, KD Navien ** Total number of patent related to all products including with condensing, KD Navien KD Navien’s consistent philosophy to provide service and technology needed by society is its pride in quality made by constant innovation

Acquirement of technology certification

First in Korea boiler industry to Obtained EPA Energy Star obtain the most prestigious certificate, which approves only ASME certificate in 2010 high efficient product, in 2003 (American Society of Mechanical (EPA, Environmental Engineers) Protection Agency) A C H I E V E M E N T

Korea No. 1 boiler recognized by global market KD Navien is at the stage of stable growth based on its great quality products.

7,267

6,847

5,833 5,120

(Unit: 100 Million Won) 4,290 7,267 Total Revenue in 2018

Overseas Sales %

53.8 46.2 52.6 47.4 Domestic Sales % 44.7 55.3 46.6 53.4 48.8 51.2

2014 2015 2016 2017 2018 KD Navien had been spreading out in global market for the last 28 years since we opened the Korean boiler export era started with exporting to China in 1992.

Percentage of KD Navien products in boiler and gas water heater export in Korea

* Source : Korea International Trade Agency (2018)

* Source : Korea International Trade Agency, export of boiler and gas water heater from 1991 to 2018 New value creation, one step closer to global customers, Acknowledged for our efforts toward the global market by being selected as ‘World Class 300” for the first time in Korea Boiler industry

Selected as Outstanding support case

Sales 67% Exports 140% In 2012, the first in Korea Boiler Industry Employee 38% selected as ‘World Class 300’ * Period: 2012~2017 Ministry of Trade, Industry and Energy KD Navien, proving to be a national boiler company with outstanding export competitiveness First in Korean Boiler industry To win ‘$200M Export award’ * Ministry of Trade, Industry and Energy, 2017 US & Canada : leading the premium market based on condensing technology, Russia : competing in the market based on unique quality that overcomes extremely cold weather

Russia Market Sales No. 1 North American Market No. 1 sales * Wall hung Gas Boiler Sales as a * Instantons Condensing gas No.1 Single brand, 2018 Litvinchuk boiler/water heater sales, 2018 BRG US Korean Boiler brand Product sales No.1 * DART, 2018 Keeping the first place in the market, With Unwavering challenge and passion, We have finally accomplished an outstanding performance.

‘18, Condensing Water ’18, As a boiler company for Heater and Boiler 1 million the first time in Russia, Achieved 1million sales of Cumulative Sales accomplishing 1 million cumulative sales cumulative sales

* Since corporation establishment (12 years) * Since corporation establishment (5 years) Going beyond Korea’s No.1, Navien moves toward the global summit by NORTH AMERICA MIDDLE EAST • United States of America • Lebanon providing comfortable living environment solutions, to more than 30 • Canada • Syria countries in the world SOUTH AMERICA • Mexico Russia & CIS • Brazil • Russia • Chile • Ukraine • Uruguay • Belarus KD NAVIEN • Azerbaijan • Georgia • United Kingdom • Kazakhstan in Global • • Uzbekistan • Ireland • Kyrgyzstan • Denmark • Germany ASIA • Spain • China • Portugal • Japan • France • Vietnam • Italy • Taiwan • Czech Republic • Philippines • Poland • Greece OCEANIA • Turkey • Australia • Latvia • New Zealand • Cyprus KD Navien touches hearts of global customers beyond Korea By doing its best in the field of design, service beyond the superior quality

Design • 2018 No. 1 in KS-QEI for 12 consecutive years • 2015 Seoul Creative Award of Film Advertising TV CF, Silver medal • 2019 No. 1 in Premium Brand index(KS-PBI) for 4 consecutive years • 2017 Award , Radio part bronze medal • 2018 No. 1 in KCS for 5 consecutive years • 2017 Good design Award • 2019 Korea Brand of the year Winner (11times) • 2018 Web Award Korea, Grand prize for brand promotion category / Masterpiece Award winner for the first in the field Quality Advertising • 2018 win 2 categories in Effie Award Korea • 2019 No. 1 in KS-WCI 1 for 16 consecutive years • 2018 Grand prize in TV ad part of Advertising of the year • 2019 No. 1 in Korea Brand Star • 2018 win Award for Good Advertising chosen by citizen

GlobalAward Service

• 2012 Selected as ‘The most desired water heater’ • 2018 Korean Service Quality Index(KSQI) by American consumers, Consumers Digest Great Call Center award for consecutive 10 years • 2013, 2015 North America’s the biggest HVAC Exhibition win • Excellent Service Quality Certification ‘AHR Expo Innovation Award’ twice • 2016, 2018, Chosen as National Brand twice in a row for the first time as Russian Boiler company • 2018 win Russian Best Company Award D R E A M

For better tomorrow, KD Navien fulfills its social responsibility Eco-friendly Management Eco-Friendly Company that cares the Earth E C O - F R I E N D LY M A N A G E M E N T

Technology Development Eco- Friendly Effort to reduce Management Carbon Environmental Certification Acquired

KD Navien practices eco-friendly management for energy saving and environmental protection in all business activities

Eco-friendly Green Eco-friendly Mark achieved Technology Development for the first time in the Carbon footprint labeling Certification For the first time in the Asia, released industry Participate Carbon footprint labeling Condensing technology that KD Navien has strived to develop and certification for the first time Increases energy efficiency and decreases produce the products that minimize with condensing technology that micro dust in domestic market. environmental impact, minimizes emission of exhaust gas, For 30 years, we have been leading the and earned the Eco-Friendly Mark by and actively participate national policy for spread and expansion of eco-friendly Ministry of Environment for the first time in carbon reduction energy technology the boiler industry E C O - F R I E N D LY M A N A G E M E N T

Rooftop green project Environment・Energy Foundation Academic Support of ‘늘푸른 Korea Environmental Landscape Environment Funding (Always Green)’

KD Navien supports various activities of eco-friendly by supporting foundation ‘늘푸른 (Always Green)’

Korea Environmental Environment・Energy Condensing Environment Rooftop green project Landscape Academic Support Funding

Affiliated Company, KD One Since 2000, KD Navien has sponsored KD Navien support academic activities KD Navien participates in the Strive for Urban green area development ‘Korea Environmental landscape’ to find related to the energy filed hold academic environmental development campaign As it has strived for rooftop green project idea for city-environmental improvement seminar to solve environmental issues via In order to support this, since 1991 and improve development of relevant foundation of “늘푸른 (Always Green)” Some of the proceeds from the fields and effect of environmental condensing boiler sales environment education It is funded. Social Responsibility Company infusing the world with warmth S O C I A L R E S P O N SI B I L IT Y

Homeless family support Social Publishing Life-environment Contribution Magazine Volunteer for Flooded Area

KD Navien practices eco-friendly management for energy saving and environmental protection in all areas

Longest corporate sponsor for Restoration of flooded area Publishing and Sharing Habitat cultural contents Since 1994 KD Navien has been the KD Navien has provided free inspection KD Navien publishes Life-environment longest sponsor for ‘Korean Habitat’, by service for the flooded area caused by magazines with cultural contents such continuously sponsoring boilers for typhoon and heavy rainfalls, and is an as Magazine N, that are distributed to residential housings active leader for safe usage of the boiler national library, independent, kids café for free KD Navien’s Belief

By striving to save energy By breathing healthy nature, The living environment will become more pleasant There is no limit to our dream.

Based on heating control technology And management solution We leap toward bigger dream Opens up the next generation

For healthier tomorrow KD Navien will always be a smarter living environment partner

G LO B A L NAVIEN

Navien America,INC Navien Rus LLC Beijing KyungDong Navien Heat Energy Equipment Co., LTD Navien LTD GLOBAL NAVIEN NAVIEN AMERICA, INC

No.1 Sales, Water Quality Makes North America Market Hot

With Continuous R&D, KD Navien wins over US • Condensing technology brings the highest efficiency of 98.8% customers who have high standards on heating • In 2017 Condensing Gas water heater products and highest usage of domestic hot water Achieved cumulative sales of 10million units of boiler even at low gas pressure environment, by • Highest market share in instantaneous condensing gas water developing a product that preserves the water to heater & condensing wall-hung boiler sector in North America high quality. With a premium water heater that has distinguished features, KD Navien is keeping the

first place in North American gas water heater https://www.navieninc.com market. GLOBAL NAVIEN NAVIEN RUS LLC

Captivates Russian customers With product localization

In consideration of Russian customers’ need for • 2016. For the first time in Russian boiler industry boiler operation in unstable power condition and Chosen as ‘Russia National Brand’ cold weather, KD Navien has developed • 2018. Win Russian Best Company Award a product that satisfies such need, and this has led • 2018. For the first time as a Russian Boiler Brand to its highest gas boiler market share and achieves 1 million cumulative sales acquirement of a Russian national brand award

https://www.navien.ru GLOBAL NAVIEN BEIJING KYUNGDONG NAVIEN HEAT ENERGY EQUIPMENT CO., LTD

Sad cold wave Is melted by the technology

• The first Korean boiler company to export boilers to China in 1992, and promote Ondolheating Culture in China • In `1999, Selected as the supplier of Pavilion New city project KD Navien has been spreading its outstanding of 天鴻集團, the biggest construction company in China heating technology originated from Korea through • The only company in Korea to be selected as a participant its Chinese subsidiary established in 1993. for the project of converting coal to natural gas in 2017 • In 2018, Construction of a new production plant completed in In 2017, KD Navien was the only Korean Company Beijing with an area of 48,000m2 to participate in Meigaiqu project, a Chinese (set to reach the production capacity of 500k units by 2020) government project set to replace coal fuels to • Mission 2022; to be within top 3 market share in natural gas, and strives to spread its influences with Chinese Gas Boiler Market superior technology http://www.kdnavien.com.cn GLOBAL NAVIEN N A V I E N L T D

Promoting Korean Condensing Technology In the home of condensing boilers

In 2014, KD Navien established its overseas

corporation in UK which has the largest boiler • First Non-EU brand to establish UK nationwide network market in the world. • First Non-EU brand to be listed on the British Gas Service It now competes with various European Brands in (British Gas is a British utility company that offers boiler Europe where high standards of energy efficiency service to the customers) and environmental qualtityare required. • First in the Industry to obtain ErP A+ rating (highest efficiency) Especially, in Europe where high standards of (LCB 700 ; condensing oil boiler with Blue flame technology) energy efficiency and environment are required challenging, we are increasing our brand

recognition and market share based on product http://www.navienuk.com quality and performance