ILJIN Co., Ltd. Business Report FY ended Dec. 2017

Highlights in Recent Years

Financial Overview (Non-consolidated)

(in millions of won)

	FY ended Dec. 31, 2017
	ILJIN Bearing	ILJIN Global	ILJIN	Bearing Art
Sales	288,737	823,090	250,517	346,732
Operating income	9,448	177,217	25,510	27,370
Net income	10,591	172,549	70,353	19,694

Development of EV Suspension Arm

-Iljin Co., Ltd. (Iljin), a South Korea-based major wheel bearing maker, announced that it has developed a new electric vehicle (EV) suspension arm utilizing plastics. The new product, which is made of steel and plastics, is 15% lighter than press-formed steel suspension arms. The company received material and structural analysis support from Germany-based BASF SE, and the achievement of practical use is in sight. Iljin will offer the new suspension arm to automakers that are improving EV travel distance. The company adopted reinforced polyamide plastics that contain glass fiber 50% for the arm body (other than the arm connection base) to realize weight reduction and high strength. It also adopted plastics for ball joints that connect the steering mechanism and the arm in order to reduce frictional resistance and improve steering operability. Iljin aims to rationalize production, for example, by means of the introduction of one-shot injection molding, and improve cost competitiveness. (From an article in the Nikkan Jidosha Shimbun on May 10, 2018)

Investments in Korea

-ILJIN Global Co., Ltd., a subsidiary of the ILJIN Group, signed an agreement with the city of Jecheon (Chungcheongbuk-do) to establish a new plant. The plant, which will serve as the company's third production base, will be constructed on a 135,930 square meter plot that ILJIN will acquire in Jecheon. Investment in this project is expected to reach KRW 101.3 billion. (From a press release on January 22, 2015)

-Bearing Art Corporation of ILJIN Group will begin in July 2014 an expansion work of its Yeongju Plant in Gyeongsangbuk-do. The plant, which has been completed in June 2013, currently has a total floor space of 49,000 square meters. The expansion will enlarge it by 59,000 square meters. (From a press release on July 14, 2014)

-Iljin Global in the Iljin Group has signed an agreement with the city of Jecheon in Chungcheongbuk-do to acquire 21,393 square meters of land at the Jecheon Industrial Zone. The land will be used to expand its existing plant. (From a press release, August 13, 2013)

Investments Outside Korea

-ILJIN Alabama Corp., a U.S. unit of the ILJIN Group, announced that it will expand its bearing plant. The Alabama subsidiary will invest KRW 15.8 million in this project to produce products for General Motors and Ford Motor, from which it won new contracts. The facility currently supplies bearings to Hyundai Motor's and Kia Motors' plants in the U.S. (From a press release on December 12, 2014)

Contracts

-The Group is supplying ball joints for Chrysler's Jeep Cherokee SUV. The company provided ball joints for 240,000 Jeep Cherokees during 2013, which added approximately KRW 3.4 billion to the Group's sales. ILJIN has also won contracts to supply ball joints to the Chinese facilities of Fiat and Chrysler, starting by 2016. (From a press release on December 31, 2013)

New Plant

-The Company has announced the grand opening of its second plant in China. The new wheel bearing plant in Tianjin supplies wheel bearings to Shanghai GM in Shanghai, Chery Automotive in Wuhu and BBDC in Beijing. The 257,000 sq. ft. plant, built at cost of 36 million USD, includes forging and machining operations for production of its Gen.2 and Gen. 3 double-row, angular-contact ball bearings. (From a press release on July 7, 2008)

New Companies

-The Group establish a new company called Bearing Art Corporation in Gyeongju, Gyeongsangbuk-do. The new company plans to invest approximately 300 billion won in order to set up a manufacturing facility for automotive bearings. (From a press release on December 6, 2011)

-In October 2012, ILJIN USA Corporation absorbed ILJIN America Corporation.
-In September 2010, the Group established ILJIN Alabama Corporation in Alabama to manufacture wheel bearings.
-In February 2008, ILJIN Global established ILJIN America Corporation in South Carolina to manufacture bearings.

R&D Structure

Facility	Location	Company
Technical Research Center for bearings	Gyeongju, Gyeongsangbuk-do	ILJIN Bearing
Technical Research Center for chassis	Gyeongju, Gyeongsangbuk-do	ILJIN Corporation
Technical Research Center (U.S.A.)	Michigan, USA	ILJIN USA Corporation
Technical Research Center (Germany)	Nurnberg, Germany	ILJIN GmbH