Highlights in Recent Years

Financial Overview (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Sales	2,955,993	2,167,695	36.4	-
Operating income	200,839	95,081	111.2	-
Net income	100,281	57,946	73.1	-

Subsidiaries

<China>
-In August 2012, the Company established Zhejiang Hanil Limin Automotive Co., Ltd. in Zhejiang, China. Manufacturing seat components. The Company own 30.0% of the share capital.

-In February 2010, the Company established Liaoning Hanil Jinxing Automotive Seat Co., Ltd. in Liaoning Province. The new entity produces automotive seats and other products for Brilliance Auto.

-In September 2005, the Company established Beijing Hanil E-Hwa Tech. Co., Ltd. The new subsidiary produces armrests and instrument panels for Beijing Hyundai Motor. 

<Brazil>
-In January 2010, the Company established Hanil Automotive do Brazil Ltda in Sao Paulo. The new entity manufactures automotive parts such as door trims, headliners and floor carpets for use in the Hyundai Porter and other vehicles.

<USA>

-In April 2010, the Company established Hanil E-Hwa Interior Systems Georgia LLC in Georgia. The new subsidiary produces door trims, tailgates, pillars and other products for Hyundai Motor and Kia Motors.

-In May 2005, the Company established Hanil E-Hwa Interior Systems Alabama LLC in Alabama, U.S.A. It manufactures door trims and other auto parts for use in the Hyundai Sonata, Santa Fe, and other vehicles.

<Slovakia>
-In October 2005, the Company established Hanil E-Hwa Automotive Slovakia s.r.o in Slovakia. The new entity manufactures door trims and floor carpets for use in the cee'd and Sportage built by Kia Motors. 

<Korea>
-In Mar. 2012, the Company established Hanil Industry Co., Ltd. in Ulsan, manufactures automotive components.

Contracts

-In March 2013, the Company started supplying interior components for Beijing Automobile's C70G mid-sized sedan through Beijing Hanil Automotive Trim. (From a press release on August 29, 2013)

Acquisitions

<Korea>
-In January 2013, the Company acquired a 100 percent share in Dooyang Industrial Co., Ltd., an interior parts supplier based in Cheonan, Chungcheong Province. Dooyang is capitalized at 1,530 million won. It has approximately 270 employees. (From a press release, January 16, 2013)

-The Company acquired 50.12 percent of the shares in Shinchang Electrics Co., Ltd., an automotive switch supplier in Korea, for 60,164 million won. As a result, Tokai Rika Co., Ltd., which had owned the largest, 28.38 percent share in Shinchang Electrics, now holds 19.72 percent in the company. (From a press release on December 16, 2011)

-In January 2007, the Company acquired Ilkwang Industrial Co., Ltd., an automotive interior parts supplier based in Ulsan City. The new subsidiary later adopted a new name, Dooyang Industrial Co., Ltd.

<India>
-The company announced that it has turned Hanyang Automotive India Private Limited into a subsidiary. Hanyang Automotive manufactures and sells automotive components in India. (From a press release on June 16, 2009)

-In November 2006, the Company paid 3.5 billion won to gain a 100 percent ownership in Shinhan Plasto India Pvt. Ltd., an Indian auto parts supplier. Becoming the Company's subsidiary, Shinhan Plasto will supply door trims, floor carpets, bumper assemblies, and instrument panels for use in the Getz (TB) and i10 built at Hyundai Motor's transplant in India. Shinhan Plasto has since adopted a new corporate name, Hanil Automotive India Pvt Ltd.

Award

-In June 2013, Hanil Automotive India Pvt. Ltd. won the Mobis National Top Performer Award from Mobis India Ltd., Hyundai Mobis' Indian subsidiary. (From a press release on June 28, 2013)

-In April 2013, Hanil Automotive India Pvt. Ltd. won Hyundai Motor's Overall Best Performance Award for the fifth consecutive year. (From a press release on April 26, 2013)

Business Reorganization

<China>
-In October 2010, the Company will sell shares in its Chinese subsidiary Jiangsu Hanil Auto Plastic Parts Co., Ltd. for 25,520 million won. The transaction will reduce Hanil Ehwa's ownership in the subsidiary from 100.0 percent to 19.0 percent. Jiangsu Hanil Auto Plastic Parts, based in Yancheng, Jiangsu Province, is a manufacturer of automotive interior components. (From a press release on October 15, 2010)

<India>
-In 2008, the Company sold the entire equity share it held in Hanil Lear India Private Ltd. to Dymos of Korea. The name of the Indian company was thereby changed to Dymos Lear India Private Limited.

<Slovakia>
-In January 2007, Hanil E-Hwa Slovakia s.r.o. absorbed Hanil E-Hwa Slovakia s.r.o.

R&D Structure

-125 employees engage in the company's research and development activities as of December 31, 2013.
The Company has the following research facilities :
-A central research center in Asan.
-A development center in Ulsan.
-A technical research center in Beijing, China

R&D Expenditure

(in millions of won)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Amount	28,941	29,034	28,933
% of Sales	3.4%	3.7	4.2

 

Recent Developments

Car maker	Model (Development code)	Products	Project period	Applications in products
FY2013
Hyundai	Genesis (DH)	Door trim	Nov. 2011 - Feb. 2013	Completed
Hyundai	Strategic 5 door Compact car for European market. (IA)	Door trim	Jun. 2011 - Feb. 2013	Completed
Kia	Sportage (SL)	Door trim	Jun. 2012 - Apr. 2013	Completed
Hyundai	Successor model to i20 (IB)	Door trim	Aug. 2012 - May 2013	Completed
Hyundai	Sonata (LF)	Door trim	Sep. 2012 - Jul. 2013	Completed
Kia	Successor model to Carnival (YP)	Door trim	Oct. 2012 - Jul. 2013	Completed
Hyundai	Starex (GC)	Door trim	Oct. 2012 - Jul. 2013	Completed
Kia/ China	Successor model to Forte (YDC)	Bumper	Oct. 2012 - Nov. 2013	Completed
Hyundai	i10　4 door (BA)	Bumper	Jul. 2012 - Nov. 2013	Completed
Kia	Successor model to Sorento (UM)	Door trim	Nov. 2012 - Nov. 2013	Completed
Hyundai/ India	Small car 5 door (GB)	Door trim	Aug. 2013 - Oct. 2013	Completed
Hyundai	New luxury sedan (AG)	Door trim	May 2013 - Dec. 2013	Completed
Hyundai/ India	Small car 3 door (GB)	Door trim	May 2013 - Aug. 2014	Under development
Hyundai	Successor model to i20 5 door (IB)	Door trim	Oct. 2012 - Sep. 2014	Under development
Kia	Successor model to Rio (QB)	Bumper	Nov. 2013 - Oct. 2014	Under development
FY2012
Kia/ China	Successor model to Santa Fe (DMC)	Door trim	Apr. 2011 - Jul. 2012	Completed
Hyundai	Successor model to Tucson (LM)	Door trim	Dec. 2011 - Jun. 2012	Completed
Kia	Successor model to Carens (RP)	Door trim	Dec. 2011 - Jun. 2012	Completed
Kia/ China	Successor model to Pride (QB)	Bumper	Feb. 2012 - Jul. 2012	Completed
Hyundai	Equus facelift (VI F/L)	Door trim	Jun. 2011 - Oct. 2012	Completed
Hyundai	Successor model to Santa Fe (NC)	Door trim	May 2011 - Jul. 2012	Completed
Kia	Successor model to cee'd 3 door (JD)	Door trim	May 2011 - Jul. 2012	Completed
Kia/ China	Successor model to Forte (YDC)	Door trim	Feb. 2011 - Oct. 2012	Completed
Kia/ China	Forte (TDC)	Bumper	Jun. 2011 - Oct. 2012	Completed
Kia	Successor model to Soul	Door trim	Nov. 2011 - Aug. 2012	Completed
Hyundai	Verna 5 door (BA)	Door trim	Jul. 2011 - Jul. 2012	Completed
Hyundai	XD (CF)	Wheel guard	Dec. 2011 - Aug. 2012	Completed
Hyundai	EG 8t truck (HS)	Door trim	Jun. 2011 - Aug. 2012	Completed
Hyundai	Porter-2 (HE)	Door trim	Nov. 2011 - Apr. 2012	Completed
FY2011
Hyundai	Successor model to Grandeur (HG)	Door trim	Apr. 2010 - Feb. 2011	Completed
Hyundai	Successor model to Elantra (MD)	Door trim	Feb. 2009 - Apr. 2011	Completed
Hyundai/ India	Successor model to Verna (RBI)	Pillar tray	Jan. 2010 - May 2011	Completed
Hyundai	Genesis Coupe facelift (BK F/L)	Door trim	May 2010 - Oct. 2011	Completed
Hyundai	Genesis Coupe facelift (BK F/L)	Door trim	May 2010 - Oct. 2011	Completed
Hyundai	i20 facelift (PB F/L)	Door trim	Nov. 2010 - Dec. 2011	Completed
Hyundai	Successor model to Santa Fe (DM)	Door trim	Aug. 2009 - Dec. 2011	Completed
Hyundai/ Slovakia	i40 sedan (VF)	Pillar tray	Mar. 2010 - Apr. 2011	Completed
Hyundai	Avante Coupe (JK)	Door trim	Mar. 2010 - Apr. 2011	Completed
Kia	Successor model to cee'd (JD)	Door trim	Jun. 2010 - Apr. 2011	Completed
Kia	K9 (KH)	Door trim	Jun. 2010 - Sep. 2011	Completed
Hyundai/ Brazil	i15 (HB)	Door trim	Feb. 2010 - Sep. 2011	Completed
Hyundai/ India	i20 facelift (PB)	Door trim	Jun. 2010 - Oct. 2011	Completed

 

Technical partnerships (Licensed-in)

Partner (Country)	Product	Content	Term
-Kasai Kogyo (Japan) -Sumitomo Chemical (Japan)	KPM	-Technical guidance on the KPM manufacturing method -Operational procedures for KPM  -Technical guidance on the KPM manufacturing method	Oct. 1995 - Oct. 2015
-Tenryu Industries Co., Ltd.	Lightweight bus seats	-Technology to manufacture lightweight, aluminum seat frames for buses	Jan. 2010 - Dec. 2012

Capital Expenditure

-Capital investment for FY2013 reached 5,932 million won.
-The company plans to spend 165,269 million won in capital investment for FY2014.