ESTRA Automotive Systems Co., Ltd. (Formerly erae Automotive Systems Co., Ltd.) Business Report FY ended Dec. 2019

Financial Overview (Consolidated)

(million KRW)

	FY ended Dec. 31, 2019	FY ended Dec. 31, 2018	Rate of change (%)
Sales	374,496	400,451	(6.5)
Operating income	4,758	12,929	(63.2)
Net income	4,902	8,092	(39.4)

*The electrical equipment and chassis businesses were spun off into a new company erae AMS Co., Ltd. in October 2017.

Parent company change

-erae CS, an automotive body parts manufacturer based in Gimhae, Gyeongsang-namdo, Korea, announced that it has acquired an additional 50.0% stake in Korea Delphi and converted it into its subsidiary. erae CS currently owns 92.3% of Korea Delphi shares. erae CS operates its plants in Gimhae and Daegu. It also has a factory in Uzbekistan. (From a press release on September 30, 2015)

Company Spin Off

-As of October 1, 2017, erae Automotive Systems Co., Ltd. has split itself into two companies, erae Automotive Systems Co., Ltd. as a spin-off and erae AMS Co., Ltd. as a new company. The former produces air conditioning systems and the latter electric components and automotive chassis. (From a press release on November 11, 2017)

Investment outside Korea

-erae Automotive Systems will establish a new company in China jointly with Shanghai Aerospace Automobile Electromechanical Co., Ltd. (SAAE). The new company will develop automotive air-conditioning systems and expand its business domain in the areas of electric steering systems, advanced driving assistance systems, and automotive driving technology. It aims to achieve sales of KRW 2 trillion per year in the next five years. SAAE recently acquired 51% of the shares in erae Automotive Systems at the cost of USD 132 million. The rest (49%) is owned by the erae group. (From some releases on December 5, 2017)

Award

-erae Automotive announced that its compressor and powertrain cooling system division has received the Supplier of the Year 2015 from General Motors of the U.S. This is the fifth time that the company (formerly called Korea Delphi) was given this award, following its achievements in 2006, 2012, 2013, and 2014. (From a press release on March 23, 2016)