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	421,068	336,113	25.3	-
Operating income	33,906	27,917	21.5	-
Net income	30,256	29,877	1.3	-

Company Split

-Dongil Rubber Belt Co., Ltd., which was established as a new company because of a corporate divesture, will use the name Dongil Rubber Belt Co., Ltd., as it inherits the commercial rubber-belt operations of its former company. In addition, the current company will then adopt the name DRB Holding Co., Ltd. The divesture is scheduled to take effect on October 1, 2012. (From a May 31, 2012 press release)

Subsidiaries

<China>
-In October 2007, the Company established Shanghai Dongil (Chaoxing) Rubber Co., Ltd. (DRBSB) to sell rubber belts.
-In December 2009, Shanghai Dongil (Chaoxing) Rubber Co., Ltd. (DRBSB) absorbed Qingdao Dongil (Chaoxing) Rubber Co., Ltd. (DRBQB).
-In February 2010, Shanghai Dongil (Chaoxing) Rubber Co., Ltd. (DRBSB) absorbed Beijing Dongil (Chaoxing) Rubber Co., Ltd. (DRBBB).

<USA>
-In April 2009, the Company established EIG America, Inc.(EIGA) in California, U.S.A.., to manufacture and sell batterries.

<Japan>
-In August 2008, the Company established Dongil Rubber Belt Japan Inc., a rubber belt sales company in Fukuoka, Japan.

Contracts

<Hyundai>
-In November 2013, the Company announced that it is supplying weather strips and glass run channels for the Hyundai Mistra medium-sized sedan produced by Hyundai Beijing. These components are manufactured at DRB's plant in Qingdao, China. (From a press release on November 29, 2013)

-In November 2013, the Company announced that it is supplying weather strips for Hyundai Motor's new Genesis, which was released in November 2013. The weather strip used on the Genesis is 15 percent lighter than DRB's previous products. (From a press release on November 29, 2013)

-In January 2013, the Company announced that it is supplying all sealing parts required for the Hyundai Santa Fe SUVs. These products include sealing parts for panoramic sunroofs, which the company is supplying for the first time. (From a press release, January 4, 2013)

-In January 2013, the Company announced that it is supplying sealing parts for the Kia Rio subcompact vehicles, which are produced at Hyudai Motor's plant in Russia. (From a press release, January 4, 2013)

<Kia>
-In August 2013, the Company announced that it was awarded a contract to supply glass run channels for the successor model (development code: PS) to the Kia Soul. Kia plans to build 200,000 units of this new model per year. (From a press release, August 28, 2013)

-In February 2013, the Company announced that it started supplying glass run channels for the Carens compact MPV built at the Plant No. 1 of Kia's Gwangju facility. This is the first time for Dong-il Rubber Belt to supply its products to the Gwangju Plant. The rubber parts supplier will thereby be providing its products to all 17 plants operated by the Hyundai Kia Group in Korea. (From a press release, February 4, 2013)

-In January 2013, the Company announced that Qingdao Dongil Rubber Belt Co., Ltd., its Chinese subsidiary, is producing glass run channels for the Dongfeng Dongfeng Yueda Kia's K3 compact sedan. (From a press release, January 4, 2013)

<Tata>
-EIG Ltd., which is a subsidiary of Dong-il Rubber Belt Co., Ltd., will supply lithium-ion polymer batteries for the Indica Vista electric vehicle manufactured by Tata Motors. The company plans to supply 135,000 cells by April 2010 and an additional 2 million cells by December 2012 to Miljobil Grenland AS, Tata's subsidiary in Norway. As a result, the company is expanding the number of production lines it owns, which includes also setting up a new subsidiary, in order to ensure it has the capacity to produce 70MWh per year by the first quarter of 2010, and 200MWh by the fourth quarter. EIG, headquartered in Cheonan, Chungcheongnam-do, manufactures secondary batteries. The company is joining the PHEV20 development project sponsored by the Korean Ministry of Knowledge Economy, working together with Hyundai Motor, LG Chem, and SB Limotive. (From a press release on October 26, 2009)

Award

-In February 2013, the Company announced that it was awarded the 2012 Best Supplier Award from Hyundai Mobis for its excellent performance in terms of quality and delivery. (From a press release, February 4, 2013)

R&D Structure

-As of December 31, 2013, there were 45 employees in charge of R&D activities.
-In April 1986 an R&D center was established in Busan, where the Company is headquartered.

R&D Expenditure

(in millions of won)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Amount	5,999	2,013	4,940
% of Sales	1.4	1.4	1.5

Major R&D Projects

R&D Projects	Term	Results
Development of sill side weather strips	Jul. 2003 -  Dec. 2004	-Commercial production started in Jan. 2005 -Products supplied to Green Tokai
Development of high load resistant belts for buses	Jan. 2005 - Dec. 2005	-In Dec. 2005 the Company gained the OE certification for fan driving belts of Kia's Grandbird buses
Development of anti pinch weather strips	Dec. 2003 - Oct. 2006	-Supply for Kia's Grand Carnival started in December 2005 -In Oct. 2006 supply for Hyundai Veracruz started.
Development of V-ribbed belts made of EPDM	Jan. 2006 - Dec. 2006	-Sales from Dec. 2005 to Dec. 2006 were 11,200 units
Development of fire-retardant, thermoplastic olefinic elastomer (vulcanized) (TPV) materials for automotive weather strips using the micro foam extrusion process	Jun. 2004 - Aug. 2007	-The Company developed both environmentally friendly materials and light-weight materials.
Development and production of TPV materials in Korea	Jan. 2009 - Jun. 2009	-Sales : Approx. 112 million won

Agreements for Technical Tie-up

Partner (Country)	Details	Term of contract
GDX Automotive (USA)	The contract provides all technical information to produce, use and sell products made with the Company's technology	Jan. 2003 - Dec. 2007
Sonneville Int'l Corp. (USA)	The contract provides all technical information to produce, use and sell products made with the Company's technology	Nov. 2003 - Oct. 2008