Kyung Chang Industrial Co., Ltd. Business Report FY ended Dec. 2014

Highlights in Recent Years

Financial Overview (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of change (%)	Remarks
Sales	552,775	526,639	5.0	-
Operating income	28,420	29,768	(4.5)	-
Net income	24,860	27,318	(9.0)	-

New Company

-In December 2014, KCW (headquarters: Daegu, Korea), a wiper production and sales company in the Kyung Chang Industrial Group, announced that it will establish a 50-50 joint venture with Bosch Electrical Drives. The new company, KB Wiper Systems (tentative name), will develop, produce, and sell wiper systems. It will be capitalized at KRW 5 billion. (From a press release on December 10, 2014)

R&D Structure

-The Company established a technical center in May 1993.
-The Company has 62 engineers working at this facility as of December 31, 2014.

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	6,726	5,792	4,766
% of Sales	1.3%	1.2%	1.2%

R&D Activities

	Areas of development activities
FY ended Dec. 31, 2010 -	-TRF press technology -Flow forming technology

Data

Sales (Non-consolidated)

(in millions of won)

		FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Transmission parts	Export	324,491	316,962	194,967
	Korea	94,304	79,973	115,080
	Total	418,795	396,935	310,047
Cables	Export	20,373	16,022	12,852
	Korea	16,660	17,308	16,668
	Total	37,033	33,330	29,520
Pedals	Export	12,774	15,364	16,379
	Korea	7,538	8,076	7,948
	Total	20,312	23,440	24,327
Levers	Export	24,771	23,273	20,838
	Korea	3,588	5,934	6,178
	Total	28,359	29,207	27,016
Reservoir tanks	Export	2,383	3,376	4,720
	Korea	1,223	1,212	1,300
	Total	3,606	4,588	6,020
Others	Export	9,219	7,993	3,647
	Korea	3,603	3,618	1,471
	Total	12,822	11,611	5,118
Total	Export	394,011	382,990	253,403
	Korea	126,916	116,121	148,645
	Total	520,927	499,111	402,048