LS Automotive Co., Ltd. (Formerly Daesung Electric Co., Ltd.) Business Report FY ended Dec. 2015
Financial Overview (Consolidated)
|(in millions of won)|
Dec. 31, 2015
Dec. 31, 2014
-The Company announced its Vision DS20151 plan that covers the period through 2020. Under this new plan, the Company aims to win contracts worth KRW 2 trillion, achieve KRW 1.5 trillion in sales, and generate KRW 100 billion in net profit before tax in 2020. In 2013, the Company generated sales of KRW 663.5 billion and posted KRW 12.5 billion in net profit before tax. (From a press release on October 8, 2014)
Acquisition by LS Mtron
-LS Mtron Ltd. of Korea will acquire an additional 49.5 percent equity share in Daesung Electric Co., Ltd. from Delphi of the U.S., making it its wholly owned subsidiary. The transaction, which is worth 39,600 million won, is expected to close at the end of January 2011. (From a press release on Dec. 14, 2010)
-LS Mtron Ltd., which is based in Korea, announced that it will acquire a 50.5 percent equity share in Daesung Electric, making it its subsidiary. LS Mtron will pay 69,078 million won for the deal. By making Daesun Electric its subsidiary, LS Mtron will be able to gain access to the automotive electric component business. LS Mtron manufactures industrial machinery and electronic components under the umbrella of the Korea LS Group. The remaining 49.5 percent equity in Daesung Electric is owned by Delphi of the U.S. (From a press release on Nov. 5, 2008)
-In December 2013, the Company announced that it is supplying multi-function switches to Daimler. It will also supply relay switches to the automaker, starting in February 2014. (From a press release, December 30, 2013)
-The Company will supply steering switches for medium- and full-size sedans manufactured by Nissan Motor Co., Ltd. The Company expects to generate 47.5 billion won in sales from this program business, which covers a period of five years starting in 2012. In 2008, Daesung Electric was awarded a contract to supply push switches to Nissan. (From a press release on Apr. 15, 2010)
-The Company has won program business from Audi to supply DC-DC converters for idle stop systems. This program, which covers a period of seven years from 2010, is expected to generate an additional 39 million euros in sales. (From a press release on Nov. 18, 2009)
-In August 2010, the Company acquired the interior lighting business from IHL Co., Ltd., a lighting manufacturer in the Hyundai Motor Group.
-In February 2010, Daesung Electric India received the Best Localization Award from Hyundai Motor India.
-In August 2009, Daesung Electric India received the Excellent Supplier Award from Hyundai Mobis.
-In April 2009, Daesung Electric India received the Excellent Supplier Award from Hyundai Motor India.
-In December 2007, the Company established India Electric Private Ltd., a wholly owned subsidiary, in Tamil Nadu, India to manufacture automotive switches. Operations at this facility started in July 2008.
-In April 2011, Wuxi Daesung Electronics signed a strategic partnership agreement with JAC Motors.
-In December 2009, Wuxi Daesung Electronics won the Excellent Quality Award from SAIC-GM-Wuling Automobile (SGMW).
-In April 2009, the Company acquired the remaining 30 percent of the shares in Delphi Daesung Wuxi Electronics Co., Ltd., making it into its wholly owned subsidiary. The Chinese subsidiary thereby changed its name to Wuxi Daesung Electronics Co., Ltd.
-In December 2011, Qingdao Daesung Electronics won the Excellent Supplier Award from JAC Motors for the third consecutive year.
-In November 2008, the Company made Qingdao Daesung Electronics Co., Ltd. its wholly owned subsidiary by acquiring the remaining 51 percent equity stake in the company, which was held by Deltech.
-In September 2013, Daesung Electric won the Above & Beyond Award from Delphi of the U.S. The award is part of Delphi's Pinnacle Awards, which are given to outstanding suppliers that made strong commitment. The Pinnacle Award was established in 2001. (From a press release on December 30, 2013)
-In December 2012, the Company was awarded the Level 2 certification of Automotive SPICE (Software Process Improvement and Capability Determination), becoming the first Korean auto parts company to obtain this standard established by European automakers for in-vehicle equipment software. (From a press release, December 20, 2012)
-The Company opened its technical center in 1986.
-In July 2012, the Company announced that it will expand its reliability verification center in Korea. After the construction project is completed, it will install more than 20 new pieces of equipment. Furthermore, another 14 pieces of testing and measuring devices will be added by the end of 2012. (From a press release, July 1, 2012)
-The Company moved its R&D center to Anyang, Gyeonggi-do in 2013
-As of Dec. 31, 2014, a total of 311 researchers engage in research and development activities.
|(in millions of won）|
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
|% of sales||5.1%||4.9%||4.5%|
R&D Activities (FY ended in December 31, 2015)
|Development projects||Achievements and results|
|Body control systems||-Development completed|
|Artificial engine noise (second generation)||-Developing for correspondence to law regulation of China|
|Integrated front console switches||-Reduced the number of wires by 16 and reduced product weight by 0.9 kg|
|Third-generation ballasts||-Optimized performances by developing and using ASIC|
|Next-generation torque & angle sensors||-Developing products that comply with ISO 26262|
|Sensorless switches for Integrated Memory Systems (IMSs)||-Reduced cost for mass production|
|HID 25W ballasts||-Developing ballasts for Hyundai and Kia models|
|VESS||-Developing for China|
-In May 2013, four companies in the LS Group, namely LSIS Co., Ltd., LS Cable Ltd., LS Mtron Ltd., and Daesung Electric Co., Ltd. signed a memorandum of understanding to collaborate in developing environmentally friendly vehicle parts and other automotive system components. The areas of collaboration will include powertrain systems, energy storage solutions, power charging systems, and electronic devices. In 2012, Daesung Electric was awarded contracts to supply power window switches and instrument panel switches to Dongfeng Motor. Earlier this year, it has also won body control module (BCM) program from the automaker. (From a press release, May 8, 2013)
Introduction of technologies
-The Company and Delphi Packard Electric Systems of the U.S. agreed on Delphi's providing junction box technology to the Company.
-The Company and Immersion of the U.S. agreed on Immersion's providing haptic technologies to the Company.
-In FY ended December 2014, the Company invested approximately 17.3 billion won in its automotive parts business to increase its capacity to produce switches and electric devices.
-In FY ended December 2015, the Company invested approximately 48.5 billion won to increase its capacity and new mass production.
-In FY ending December 2016, the Company has a plan to invest approximately 41.2 billion won to increase its capacity and new mass production.