Mando Corporation Business Report FY ended Dec. 2017

Financial Overview (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016	Rate of change (%)	Remarks
Sales	5,684,705	5,866,372	(3.1)	-
Operating income	83,526	305,005	(72.6)	-
Net income	19,265	279,119	(93.1)	-

Recent Development Outside Korea

-The company established a new research and development center in Bengaluru, as the second technology base in India, following the one in Delhi. The Bengaluru R&D center is going to develop software for autonomous driving recognition algorithm based on artificial intelligence while exploring the possibility of improving quality of software it applies to all of its products by utilizing software verification technologies and automation systems. Mando also has a plan to boost its engineers in India to more than 500 by 2020, from current 150. (From a press release on October 8, 2017)

Contracts

-Mando (Beijing) Automotive Chassis System Co., Ltd., a Chinese unit of Korea-based Mando Corporation, received the Excellent Supplier Award 2016 from Volkswagen FAW Platform Co., Ltd. Chengdu Branch. Mando (Beijing) Automotive Chassis System has been supplying front brake calipers for the Jetta since July 2015. (From a press release on November 21, 2016)

R&D Structure

-Sungnam, Gyeonggi-do (Mando Global R&D Center)

-U.S. (Detroit, Michigan)
-China (Beijing)
-India (Haryana)
-Germany (Frankfurt)

-U.S. (Sault Ste. Marie, Michigan)
-China (Heihe, Heilongjiang province)
-Sweden (Arjeplog)
-New Zealand (Wanaka)

-The Company celebrated the groundbreaking of Mando Europe R&D Center in Frankfurt, Germany. The new R&D center is slated to complete in 2018 as a facility to work on research and development of automotive chassis. (From a press release on September 15, 2017)