SL Corporation Business Report FY ended Dec. 2017

Financial Overview (Consolidated)

(in million of won)

	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016	Rate of change (%)	Remarks
Sales	1,485,475	1,619,199	(8.2)	Sales by product (FY ended Dec. 31, 2017) Lamps : 766,554 million won Chassis components : 414,446 million won Dies and others ： 304,473 million won
Operating income	54,758	99,335	(44.9)	-
Current net income	96,228	109,994	(12.5)	-

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.

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)

R&D Expenditure (Non-consolidated)

(in million of won)

	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016	FY ended Dec. 31, 2015
Amount	89,906	31,153	27,192
% of sales	12.5	4.9	4.6

Product Developments

FY ended Dec. 31, 2017	FY ended Dec. 31, 2016
Ultra-thin LED modules	Developed low-cost LED headlamp module
Second-generation modules integrated with LED daytime-running lights, PSTNs, and low-beams	Developed a second-generation, integrated LED daytime running light, PSTN, low-beam model
Headlamp modules designed for new light sources	Developed light-guide with distinctive design
Multi-channel LED headlamp modules	Developed head-lamp module for new light-sources
Lighting-type, multi-channel LED headlamp modules	Developed low-cost, anti-glare LED headlamp module
Daytime running light optical systems with unique design	Developed a multi-channel LED headlamp module
Lamps with drive mechanisms	Developed a distinctive-design, imaging rear-lamp
Rear-lamp modules designed for new light sources	Developed rear-lamp module for new light-sources
New optical concept rear-lamps with enhanced product appeal	Developed 3D rear lamp