Austem Co., Ltd. Business Report FY ended Dec. 2014

Highlights in Recent Years

Financial Overview (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of change (%)	Remarks
Sales	218,064	254,979	(14.5)	-
Operating income	3,805	12,395	(69.3)	-
Net income	9,860	10,021	(1.6)	-

Contracts

-The Company has supplied approximately KRW 24,300 million worth of front cradles to Korea GM. The volume accounts for approximately 80.6 percent of the overall contract worth KRW 30,141 million. The contract covers the period between June 2012 and December 2016. (From a press release on November 11, 2014)

-The Company is supplying its front cradles and rear axles to GM Uzbekistan. Austem has already delivered approximately KRW 24,000 million worth of these products, which account for about 23.9 percent of the total contract amount of KRW 100,532 million. The agreement covers the period between August 2012 and December 2017. (From a press release on October 29, 2014)

-The Company has supplied approximately KRW 11,500 million worth of rear axles to General Motors Korea. This figure accounts for 24.2 percent of the total contract amount of KRW 47,617 million. The rear axle contract covers the period between September 2013 and December 2017. (From a press release on September 29, 2014)

-The Company won a contract worth KRW 25,987 million to supply front cradles and rear axles to General Motors Indonesia for the period between August 2012 and December 2017. The company says it has already delivered products worth approximately KRW 4,000 million, which accounts for about 15.4 percent of the overall program. (From a press release on August 29, 2014)

R&D Structure

-The Company operates a technical research center in Incheon.

-The Company conducts development activities at its technical center, which consists of three teams: seat designing team; chassis designing team; and a research team for advanced technology.

R&D Expenditure (Consolidated)

(in millions of won)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Amount	2,897	2,481	3,438
% of Sales	1.3	1.0	1.4

Data

Sales (Consolidated)

(in millions of won)

		FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012
Wheel	Export	7,851	9,695	9,254
	Korea	4,689	8,176	7,449
	Total	12,540	17,871	16,703
Chassis parts	Export	42,299	38,377	30,124
	Korea	87,919	88,164	86,809
	Total	130,218	126,541	118,933
Seat	Export	10,084	17,147	15,835
	Korea	26,163	43,134	38,604
	Total	36,247	60,281	54,439
Others	Export	25,049	23,032	22,230
	Korea	14,011	27,255	23,904
	Total	39,060	50,287	46,234
Total	Export	85,283	88,251	77,543
	Korea	132,782	166,729	162,753
	Total	218,065	254,979	240,296