Hanon Systems Corp. (Formerly Halla Visteon Climate Control)

Company Profile

■URL

http://www.hanonsystems.com/En

■Address

95, Sinilseo-ro, Daedeok-gu, Daejeon, Korea

Business Overview

-The Company is a manufacturer of automotive air conditioning systems, modules, compressors and radiators.
-The Company has the largest share in Korea for automotive air conditioning systems.
-Its air conditioning systems and compressors are used in all the passenger vehicles built by Hyundai Motor and Kia Motors.

Business Background
-The Company was established in March 1986 as a joint venture between Ford of the U.S. and Mando Corporation of Korea.
-In March 1999, the Company became a subsidiary of Visteon of the U.S.
-In 2013, the Company acquired most of Visteon's automotive climate business.
-In June 2015, Visteon has completed the sale of its approximately 70 percent ownership interest in Halla Visteon Climate Control Corp. to an affiliate of Hahn & Company, and Hankook Tire Co. Ltd., for approximately USD 3.6 billion.
-In July 2015, the Company changed its name to Hanon System Corp. from Halla Visteon Climate Control Corp.

Domestic Share for Automotive Air Conditioning Systems

(According to the Company's survey)
Company FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 Major customer
The Company 44% 48% 52% Hyundai Motor,
Kia Motors
Doowon Climate Control Co., Ltd. 29% 28% 27% Hyundai Motor,
Kia Motors
erae Automotive Systems Co., Ltd. 14% 14% 13% GM Korea
Others 13% 10% 8% -
Total 100% 100% 100% -

Shareholders

(As of Dec. 31, 2016)

Major Shareholder Interest Ratio (%)
Hahn & Co. Auto Holdings Co., Ltd. 50.50
Hankook Tire Co., Ltd. 19.49
National Pension Service 5.17
Total 75.16

Products

Air conditioning systems
-Heater units
-Evaporators
-Blower units
-Air quality sensors

Cooling modules
-Radiators
-Condensers
-Fan shrouds

Front end modules

Carriers

Compressors

Air filters

Air purifiers

Controllers

Heat exchangers
-Radiators
-Evaporators
-Condensers
-Heat cores

History

Mar. 1986 Halla Climate Control Corp. was established as a joint venture between Ford of the U.S. and Mando of Korea.
Apr. 1989 Technical center was completed in Daejeon.
Jun. 1989 The Company established Halla Climate Control Canada Inc. (HCC Canada).
Oct. 1991 Pyeongtaek plant was completed.
Dec. 1991 The Company received Q1 Award from Ford.
Oct. 1994 The Company acquired ISO9001 certification.
Jul. 1996 The Company went public.
Jul. 1996 The Company established Halla Climate Control Thailand Co., Ltd. (HCC Thailand).
Oct. 1996 The Company established Halla Climate Control Portugal - Arcondicionado. Lda. (HCC Portugal).
Dec. 1996 Daejeon plant was completed.
Jul. 1997 The Company acquired ISO14001 and QS9000 certifications.
Apr. 1998 The Company received the Best Supplier Award from GM.
Mar. 1999 Visteon of the U.S. became the Company's leading shareholder.
Jan. 2001 HCC Thailand received the Best Supplier Award from GM.
Jul. 2001 Ulsan plant was completed.
Jan. 2002 The Company received the Best Safety Supplier Award 2001 from GM.
Mar. 2002 The Company received the Outstanding Quality Performance Award 2001 from Mazda.
May. 2002 Ulsan plant started mass production of front end modules.
Mar. 2003 The Company acquired ISO/TS16949:2002 certification.
Aug. 2004 The Company established Halla Climate Control Dalian Co., Ltd. (HCC Dalian) in China.
Jul. 2005 The Company started production of large capacity compressors in Dalian, China.
Mar. 2006 The Company acquired 100% stakes in Visteon Turkey.
May. 2006 The Company established a new compressor plant in Dalian, China.
Jul. 2007 The Company established HCC Slovakia in Slovakia.
Oct. 2007 The Company established Climate Global, LLC in Korea., investing 50 percent of the needed capital.
Dec. 2007 The Company gained 100 percent of the shares in Climate Global, LLC.
Jul. 2008 The Company established Halla Climate Control (Shanghai) Technology Co., Ltd. (HCC Shanghai) in China.
May 2009 The Company changed the name of its Turkish subsidiary from Visteon Otomotiv Parcalari Uretim Sanayi Ve Ticaret A.S.(Visteon Turkey) to Halla Otomotiv iklimlendirme Sistemleri Uretim Sanayi ve Ticaret Anonim sirketi (HCC Turkey).
Jul. 2009 The Company acquired the remaining shares in Halla Climate Systems Alabama Inc. (HCSA), making it into its wholly owned subsidiary.
Dec. 2009 The Company established Halla Climate Control (Jinan) Co., Ltd. (HCC Jinan) in China.
Nov. 2011 The Company acquired 37.5 percent of the shares in Wuhu Bonaire Automotive Electrical Systems.
Mar. 2013 The Company acquired HVAC business from Visteon, and changed the name to Halla Visteon Control Co., Ltd.
Sep. 2013 Established Halla Visteon Climate Control Brazil Ltd. in Brazil.
Nov. 2013 Merged Climate Global, LLC which is a South Korea-based subsidiary.
Dec. 2014 Visteon has entered into an agreement to sell its approximately 70 percent ownership interest in the Company to an affiliate of Hahn & Company - a South Korea-based private equity company – and Hankook Tire Co., Ltd. for approximately USD 3.6 billion. The transaction is expected to be completed in the first half of 2015.
Jun. 2015 Visteon, the former largest shareholder, sold its ownership interest to an affiliate of Hahn & Company and Hankook Tire Co., Ltd.
Jul. 2015 Changed its name to Hanon System Corp. from Halla Visteon Climate Control Corp.
Dec. 2016 Opened an engineering center in Shanghai, China.

Supplemental Information 1