Highlights in FY2010 (FY ended Dec. 31, 2010)

Financial Overview

(in billions of won)

	FY2010	FY2009	Rate of change	Remarks
Sales	13,695.7	10,633.0	28.8%	Sales at the Module Division stood at 9,844.1 billion won, which accounted for 71.9 percent of the Company's overall revenue.
Operating income	1,803.2	1,422.2	26.8%	-
Net income	2,423.2	1,615.2	50.0%	-

Establishment of New Company

The Company and LG Chem, Ltd. established HL Green Power Co., a joint-venture company that will develop and produce lithium-ion battery packs for environmentally friendly vehicles. The new company is capitalized at 29 billion won, 51 percent of which is provided by the Company and the remaining 49 percent provided by LG Chem. HL Green Power, which is located on the premises of Hyundai Mobis' facility making hybrid vehicle components in Uiwang City, Gyeonggi-Do, will build a lithium-ion battery plant with an annual production capacity of 200,000 packs. HL Green Power plans to invest around 46 billion won so as to double the capacity to 400,000 packs by 2014. (From a press release on Feb. 11, 2010)

Contracts

GM
The Company was awarded a contract from GM to supply approximately 260 million USD worth of switch panels. The product, which is called the Integrated Center Stack (ICS), consists of a radio ICS and an HVAC ICS. Starting in 2011, the Company will deliver 460,000 ICSs every year to Chevrolet brand vehicles produced in the U.S., China and other countries. In 2013, it will begin to supply additional 130,000 units annually to GM Holden's Adelaide plant in Australia. Hyundai Mobis will produce ICSs at Tianjin Mobis Automotive Parts in China. (From a press release on December 20, 2010)

Production

 Modules
The construction of the Company's' new plant designed to produce chassis modules in Michigan, U.S.A. has been completed. The new facility, which is located about 20 kilometers from Chrysler's Jefferson North Assembly Plant, launched production, supplying front and rear chassis modules for the 2011-model-year Chrysler Jeep Grand Cherokee, which will roll off the assembly line in June 2010. Beginning in November 2010, the plant will also supply the same front and rear chassis modules for the 2011-model-year Chrysler Dodge Durango. The total revenue from both of these programs is expected to reach approximately 2 billion US dollars. (From a press release on Jun. 8, 2010)

Mobis Georgia, LLC has completed its plant in Georgia, U.S.A. Located on the premises of Kia Motors' car assembly plant, the facility will manufacture chassis modules, cockpit modules, front-end modules, and other components. Its production capacity is expected to reach 300,000 modules per year. (From a press release on Mar. 1, 2010)

Business Plans

The Company announced its business plans for 2011. According to its announcement, the company targets generating total sales of 26 trillion won, of which 14 trillion won is expected to be produced in Korea and 12 trillion won in overseas markets. Out of the planned total invetsment of 1,150 billion won, the Company plans to allocate 360 billion won for the R&D segment. It is aiming to become one of the world's top 10 companies in the automotive components industry. (From a press release on January 17, 2011)

R&D Structure

Facility	Location
Yong-in (CarTronics) R&D Center	Yong-in, Gyeonggi-do, Korea
Shanghai R&D Center	Shanghai, China
Detroit R&D Center	Detroit, China
Frankfurt R&D Center	Frankfurt, Germany
Hyundai Autonet India Engineering Pvt. Ltd.	Hyderabad, India

The Company has inaugurated a technical consortium in order to develop major components for next-generation vehicles. Working in collaboration with academic organizations such as Seoul National University and Korea Advanced Institute of Science and Technology (KAIST), the Company is promoting an open innovation to make use of external research resources for developing advanced safety vehicle (AVS) systems, batteries, lamps, brakes, and software. It intends to invest 320 billion won in research and development activities in 2010, which is an increase of 50 percent compared with the previous year's amount. The Company is currently working on developing 550 new products and technologies. (From a press release on Jun. 22, 2010)

R&D Expenditure (Non-consolidated)

(in billions of won)

-	FY2010	FY2009	FY2008
Amount	277.1	204.3	121.2
% of sales	2.00%	1.92%	1.29%

R&D Activities

The Company developed nine types of automotive semiconductor chips using only domestic technologies. They include two chips for the idle stop-and-go system and the generation control system, two for the parking assistance and traffic lane/image recognition systems, and five for the smart key system. Producing these chips in Korea instead of importing them from overseas is expected to save approximately 300 billion won in import and raw material costs. (From a press release on November 11, 2010)

The Company and Samsung SDI Co., Ltd. succeeded in jointly developing LED headlamps. No other Korean company has ever developed such headlamps in the country. The newly developed product, which is 15-40 percent brighter than competitors' existing products, is also at least 25 percent less expensive to produce. The two companies agreed to jointly develop LED headlamps back in April 2009. (From a press release on November, 10, 2010)

R&D plans
The Company will increase its yearly R&D spending from the current 350 billion won to 650 billion won by 2015. It is now developing several advanced safety technologies such as the smart cruise control (SCC) system, which is designed to help the driver keep a safe distance from the car ahead; the lane-keeping assist system (LKAS); and the tire-pressure monitoring system (TPMS). After launching commercial production of these products, it aims to double the sales of its major automotive components from the current 1.5 trillion won to 3.0 trillion won by 2020. The Company also intends to increase efficiency in developing new technologies by dividing functions at the R&D center into three segments, namely the exploratory development section, the basic research section, and the mass-production technology section. (From a press release on Jul. 13, 2010)

Capital Expenditure

(in millions of won)

 

-	Planned amount of investment	Amount invested in FY2010	Planned amount of investment from FY2011 onwards
Module Business
-Mobis Electronik Brake (MEB) plant	33,051	28,920	4,131
-Gimcheon lamp plant	30,542	36,110	-
-Jincheon plant	17,574	17,075	499
Others	134,150	89,167	44,983
Total	215,316	171,273	49,613

Establishment of New Factories

-Michigan, U.S.A
The construction of the Company's new plant designed to produce chassis modules in Michigan, U.S.A. has been completed. The new facility, which is located about 20 kilometers from Chrysler's Jefferson North Assembly Plant, launched production, supplying front and rear chassis modules for the 2011-model-year Chrysler Jeep Grand Cherokee, which will roll off the assembly line in June 2010. Beginning in November 2010, the plant will also supply the same front and rear chassis modules for the 2011-model-year Chrysler Dodge Durango. The total revenue from both of these programs is expected to reach approximately 2 billion US dollars. (From a press release on Jun. 8, 2010)

-Georgia, U.S.A
Mobis Georgia, LLC has completed its plant in Georgia, U.S.A. Located on the premises of Kia Motors' car assembly plant, the facility will manufacture chassis modules, cockpit modules, front-end modules, and other components. Its production capacity is expected to reach 300,000 modules per year. (From a press release on Mar. 1, 2010)