Inzi Controls Co., Ltd. Business Report FY ended Dec. 2014

Financial Overview (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of change (%)	Remarks
Sales	593,348	546,644	8.5	-
Operating income	9,908	9,599	3.2	-
Net income	741	(2,521)	-	-

R&D Expenditure (Non-consolidated)

(in millions of won)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Amount	17,101	15,082	12,751
% of sales	4.2%	4.1	3.4

R&D Activities

R&D project	R&D period	Organization leading the project
Development of mediums-size EV platform and air conditioning system using the heat pump system	Jul. 2011 - Jun. 2014	Hyundai Motor
Development of intelligent air conditioned seat	Oct. 2013 - Feb. 2014	Daejeon Techno Park Chungnam Techno Park
Development of comfort seat system	Nov. 2014 - Oct. 2017	Chungnam Techno Park

Investment outside Korea

-Inzi Controls Detroit, LLC, a U.S. unit of the Company, announced that it will invest approximately USD 4.1 million in a new thermostat plant in Rochester Hills, Michigan. The Michigan facility will serve as its second plant in the U.S. after its Alabama facility. (From a press release on August 1, 2014)

Data

Sales by Products (Non-consolidated)

(in millions of won)

		FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Water temperature controls	Export	2	0	0
	Korea	46,204	41,792	40,293
	Subtotal	46,206	41,792	40,293
Thermostats	Export	240	200	249
	Korea	14,298	13,518	12,944
	Subtotal	14,538	13,718	13,193
Knock sensors	Export	9	17	14
	Korea	7,401	7,029	6,277
	Subtotal	7,410	7,046	6,291
Purge control valves	Export	0	3	11
	Korea	3,379	2,549	4,647
	Subtotal	3,379	2,552	4,658
Fuel pressure regulators	Export	7,199	9,472	10,984
	Korea	9,775	10,706	12,567
	Subtotal	16,974	20,178	23,551
Plastic intake manifolds	Export	0	0	0
	Korea	28,399	24,768	24,749
	Subtotal	28,399	24,768	24,749
Others	Export	28,809	19,409	34,842
	Korea	242,291	223,706	228,330
	Subtotal	271,100	243,115	263,172
Total	Export	36,259	29,101	46,100
	Korea	351,747	324,068	329,807
	Total	388,006	353,169	375,907

Production Capacity/Result (Non-consolidated)

(in thousands of unit)

Item	FY ended Dec. 31, 2014		FY ended Dec. 31, 2013		FY ended Dec. 31, 2012
Item	Capacity	Result	Capacity	Result	Capacity	Result
Water temperature controls	24,458	20,382	22,740	18,950	23,444	19,537
Sensors	23,368	19,473	22,538	18,782	16,998	14,165
Valves	35,601	29,668	35,695	29,746	35,851	29,875
Others	48,568	40,474	39,433	32,861	38,971	32,476

Capacity Utilization Rate (Non-consolidated)

Facility	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Shihwa plant (Headquarters)	87%	84%	95%
Gyeongju plant	89%	84%	78%
Okcheon plant	93%	98%	96%
Average	89%	88%	92%