SL Corporation Business Report FY ended Dec. 2018

Financial Overview (Consolidated)

(in million of won)

	FY ended Dec. 31, 2018	FY ended Dec. 31, 2017	Rate of change (%)	Remarks
Sales	1,601,987	1,485,475	7.84	Sales by product (FY ended Dec. 31. 2018) Lamps : 885,127 million won Chassis components : 299,171 million won Dies and others : 417,688 million won
Operating income	16,681	54,758	(69.53)	-
Current net income	31,788	93,176	(65.88)	-

Contracts

<Hyundai Kia>
-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, 2018	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016
Amount	103,636	89,906	31,153
% of sales	14.1	12.5	4.9

Product Developments

FY ended Dec. 31, 2018	FY ended Dec. 31, 2017	FY ended Dec. 31, 2016
Slim Flat modules	Ultra-thin LED modules	Developed low-cost LED headlamp module
OLED Look rear lamps	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
Bezel-Less Lighting	Headlamp modules designed for new light sources	Developed light-guide with distinctive design
Micro Lens Low/High	Multi-channel LED headlamp modules	Developed head-lamp module for new light-sources
New optical system for optical fiber	Lighting-type, multi-channel LED headlamp modules	Developed low-cost, anti-glare LED headlamp module
Laser high beam boost	Daytime running light optical systems with unique design	Developed a multi-channel LED headlamp module
Gemstone DRL optical system	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