Financial Overview

(in million of won)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Remarks
Sales	836,617	906,316	(7.7)	-In FY ended Dec. 31, 2013, sales of cockpit modules and instrument panels totaled 749,609 million won, which made up 89.6 percent of all company's sales.
Operating income	(1,270)	(1,613)	-	-
Net income	1,317	4,093	(67.8)	-

Acquisition

-Visteon Corporation announced that the company has reached an agreement to sell its 50 percent ownership stake in a Korean automotive interiors joint venture, Duckyang Industry Co., Ltd. in support of its previously announced intentions to divest its interiors business. The sale to certain management shareholders of Duckyang and associated parties for the equivalent of about USD 24.1 million (KRW 25.9 billion) is expected to be completed in April 2014. (From a press release on March 19, 2014)

R&D Structure

-The Company has two technical research centers: one in Gyeongju City, Gyeongsangbuk-do, and another one in Suwon City, Gyeonggi-do.

-The number of R&D staff as of December 31, 2013: 50

-In May 2008, the Company established Ulsan New Technology Research Center. A total of 30 researchers work at the new facility, which is comprised of the Environmental Experiment Section and the Product Development Section. (From a press release on May 19, 2008)

R&D Expenditure

(in million of won)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Amount	10,717	11,683	11,187
% of Sales	1.3%	1.3%	1.4%

R&D Activities

-According to an announcement made by Ulsan City, which is located in southeastern Korea, the Ulsan Innovation Cluster Promotion Group will launch a project to develop low-priced, environmentally friendly automotive products. This project is being carried out jointly by seven companies, including Hyundai Motor and Duck Yang Industry; six research bodies; and two universities. The total investment by the Korean government, local communities, and the private sector is planned to reach 7,170 million won within the next two years. The project team will carry out development activities in three areas: chassis products, body parts, and interior products. If the project succeeds as planned, costs will be reduced by more than 20 percent as a result of improved manufacturing processes; and new jobs will be created as a result of installing more production lines. Sales are expected to increase by 336 billion won within two to three years after launching the development activities. (From a press release on Feb. 4, 2008)