SL Corporation Business Report FY ended Dec. 2016

Financial Overview (Consolidated)

(in million of won)

	FY ended Dec. 31, 2016	FY ended Dec. 31, 2015	Rate of change (%)	Remarks
Sales	1,619,199	1,395,133	16.1	Sales by product (FY ended Dec. 31, 2016) Lamps : 998,995 million won Chassis components : 427,464 million won Dies and others ： 192,739 million won
Operating income	99,335	63,278	57.0	-
Current net income	109,994	68,859	59.7	-

Contracts

-The Company announced that it is supplying wireless charging systems for Kia Motors' K5 mid-size sedan and Sportage compact SUV. The supply agreement was signed in April 2014, and covers the period from July 2015 through June 2021. The program is expected to generate KRW 24,734 million in sales. (From a press release on September 25, 2015)

R&D Structure

-The Company established R&D center in Feb. 1986, which now has approximately 400 researchers.
-The Company owns two design engineering centers, one in Detroit, Michigan, U.S.A. and the other in Shanghai, China.
-The Company introduced technology from Hella (Germany), Stanley Electric Co., Ltd. (Japan), Delphi Corporation (USA) and other partners through technical tie-ups.

R&D Expenditure (Non-consolidated)

(in million of won)

	FY ended Dec. 31, 2016	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014
Amount	31,153	27,192	24,456
% of sales	4.9	4.6	4.4

R&D Activities

-In July 2014, the Company obtained an U.S. patent on a drive module of automotive LED lamps. The module is highly versatile and compatible with various specifications of LED light sources and also stabilizes running of LED lights. This technology is being used on many vehicle models. SL Corporation intends to expand the use of this technology to other models. (From a press release on July 23, 2014)

Product Developments

Topic	Period
FY ended Dec. 31, 2016
Developed low-cost LED headlamp module	January 2016 - December 2016
Developed a second-generation, integrated LED daytime running light, PSTN, low-beam model	February 2016 - July 2017
Developed light-guide with distinctive design	February 2016 - September 2016
Developed head-lamp module for new light-sources	February 2016 - November 2016
Developed low-cost, anti-glare LED headlamp module	January 2016 - December 2016
Developed a multi-channel LED headlamp module	May 2016 - October 2017
Developed a distinctive-design, imaging rear-lamp	February 2016 - October 2016
Developed rear-lamp module for new light-sources	November 2015 - April 2017
Developed hologram rear lamp	May 2015 - September 2016
Developed 3D rear lamp	May 2015 - July 2016