Highlights in recent years

Financial Overview (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Remarks
Sales	218,166	240,382	(9.2)	Sales by product (Ratio) LPI systems : 62,462 million won (28.6%) Delivery pipes : 45,578 million won (20.9%) Throttle bodies : 22,007 million won (10.1%)
Operating income	19,320	26,096	(26.0)	-
Net income	20,171	27,881	(27.7)	-

Contracts

-Motonic has been chosen by the Hyundai Kia Automotive Group as a developer of high-pressure fuel pump modules for NuGDI engines. The NuGDI engines will be used on hybrid electric vehicles. Mass production of the modules is scheduled to begin in August 2014. (From a press release on March 12, 2013)

-In January 2013, the Company was chosen as a developer of fuel pump controllers for gasoline engines by Hyundam Ind. Co., Ltd., a fuel pump supplier in Korea. The company aims to start mass production of the new controller by August 2014. Hyundam Ind. Co., Ltd. is a Korean subsidiary of Aisan Industry based in Japan. Headquartered in Asan, Chungcheongnam-do, it supplies fuel pumps to automakers including Hyundai and Kia. (From a press release, January 22, 2013)

-The Company was chosen as a developer and supplier of EGR valves by Hyundai and Kia Motors. Mass production of the new EGR valve is scheduled to begin in August 2016. (From a press release, December 10, 2012)

-The Company was chosen by Hyundai Powertech as a developer and manufacturer of oil pumps for 6-speed automatic transmissions. Mass production is scheduled to start in July 2013. Hyundai Powertech is an automatic transmission supplier in the Hyundai-Kia Group. (From a press release, November 13, 2012)

-The Company was chosen by the Hyundai-Kia Automotive Group as a developer of air control valves for the A2 Euro6 engines. The company aims to start mass production of the new valves in September 2014. (From a press release, September 20, 2012)

-The Company was selected by Kia Motors to be its supplier to develop delivery pipes. The Company plans to begin commercially producing the pipes for delivery in August 2013. (From a July 18, 2012 press release)

-The Company was selected by Hyundai-Kia as the company to develop an electric EGR valve for diesel engines such as the U2 engine and the R engine. The agreement, which is for a period of four years starting from 2014, is expected to generate 67.8 billion won in sales. (From a press release on July 12, 2011)

-The Company was selected by Hyundai-Kia as the company to develop a high-pressure fuel pump assembly for gasoline direct injection engines. The company plans to start mass-production of the new product in June 2014. (From a press release on April 4, 2011)

-The Company was awarded a contract from Hyundai Motor to develop and manufacture variable valve lift (VVL) systems for the automaker's Theta 2 GDI engines. The VVL system includes a VVL assembly, an oil control valve and an orifice.Over the period of four years starting from June 2014, Motonic will manufacture 1,224 thousand VVL systems for Hyundai's medium-size vehicles. This contract is expected to generate 76.5 billion won in sales. (From a press release on March 24, 2011)

-The Company was chosen by Hyundai Motor Company as the supplier to develop a continuously variable valve lift (CVVL) assembly and a motor. Engineers of the company are currently developing these products, which are planned to be delivered around June 2011. (From a press release on Mar. 23, 2010)

-The Company will supply a Liquefied Petroleum Gas Injection (LPI) System to Orbital Australia Pty Ltd. of Australia for a period of five years, between 2011 and 2015. The company is expecting to generate 23,124 million won from this agreement. The LPI system will be installed on Ford's new LPI vehicle. Orbital supplies components for LPG vehicles sold in Australia and New Zealand. (From a press release on Sep. 28, 2010)
 

Subsidiaries

<China>
-In September 2005, the Company established Beijing Motonic Corporation to manufacture throttle bodies, fuel rails and other products.
In December 2007, the factory started mass production.

<India>
-In January 2008, the Company established Motonic India Automotive Private Ltd. to manufacture automotive components throttle bodies, fuel rails and other products.
In September 2008, the factory started mass production.

Certification

-In August 2010, the Company acquired the "Quality 5 Star" certificate from Hyundai-Kia.
-In February 2010, the Company acquired the "Technology 5 Star" certificate from Hyundai-Kia.

R&D Structure

-The Company conducts development activities on fuel supply systems at its R&D center established in August 1989.

R&D Expenditure (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Amount	6,238	6,827	6,586
% of Sales	2.9%	2.8%	2.6%

Recent developments

Area of development	Development period
FY ended Dec. 31, 2013
Injector modules	Feb. 2012 - Jun. 2013
Oil pumps	May 2012 - Aug. 2013
LPGI intake manifold modules	Jan. 2012 - Sep. 2013
LPGI kits for the Kia Morning	Jan. 2011 - Oct. 2013
FY ended Dec. 31, 2012
Fuel pump controllers	Mar. 2011 - Oct. 2012
Piston clutches	Dec. 2010 - Jul. 2012
FFV SOL	Sep. 2010 - Mar. 2012
Piston clutches (4 items)	Dec. 2010 - Oct. 2012
Delivery pipes (Hyundai Nu engines)	Mar. 2010 - Mar. 2012
FY ended Dec. 31, 2011
Continuously Variable Valve Lift (CVVL) systems	Jun. 2009 - Dec. 2011
LPI kits destined for export	Nov. 2009 - May 2011
LPI bi-fuel kits	Apr. 2010 - Jun. 2011
LPG bi-fuel systems	Feb. 2010 - Dec. 2011
SCR urea injection systems	Jun. 2009 - May 2011

Technical alliances (licensing-in)

Partner (Country)	Products	The expiry of the agreement
MGI Courtier (France)	Plastic fuel rails	Jan. 2015
MGI Courtier (France)	Plastic fuel lines	Jan. 2015
Vialle, Beheer BV (Holland)	LPI systems	Oct. 2018
Mitsubishi Electric (Japan)	Wastegate actuators	Dec. 2015
Mitsubishi Electric (Japan)	VG actuators	Jun. 2015
Mitsubishi Electric (Japan)	W-ENG	Jun. 2015
Mitsubishi Electric (Japan)	Electric EGR valves	Dec. 2016
Mitsubishi Electric (Japan)	VG actuators	Apr. 2017
Mitsubishi Electric (Japan)	Wastegate actuators	Mar. 2015
Korea Institute of Machinery and Materials (Korea）	LPG fuel pumps	Sep. 2028
OTICS (Japan)	Continuously Variable Valve Lift (CVVL) Systems	Dec. 2016
OTICS (Japan)	Variable Valve Lift (VVL) Systems	Aug. 2018

Capital investment projects (Non-consolidated)

(in millions of won)

Company	FY ended Dec. 31, 2014	Remarks
The Company, Daesung Automotive Co., Ltd.	14,111	Fuel pumps for GDI engines Mass-production line: 7,400 million won Oil pumps Mass-production line: 3,095 million won
Beijing Motonic Corporation	250	-
Motonic India Automotive Private Ltd.	31	-
Total	14,392	-