KEYYANG PRECISION

Green Energy Company

01. Turbocharger is…

Enhance Fuel Efficiency

Emission Reduction incl. Co2

Utilize Wasting Energy

Improve Power Output

Utilizing exhaust gas from engine, turbocharger generate highly compressed air and inject

to engine chamber. This compressed air result stronger explosion power with higher fuel

efficiency and complete combustion with reduced environmental pollutant.

Turbocharger works,

Turbine Compressor

02. Related Industries and Applications

Casting Industry

Precision processing

Industry

Air Compressor Other Turbo -Machinery

Locomotive

Aircraft

Medical Device

Industrial Engine

Heavy Equipment Agriculture-Machinery Shipbuilding Vehicle Truck

Ultra-High Heat Resistant

Material I Industry

Power plant ‘s Turbine

Turbocharger Related Industries

03. Company Profile

▣ Established : 17 Oct. 1994

▣ Founder & CEO : Byung-kee Chung

▣ Employees : 183 (R&D : 48 Engineers, 26%)

▣ Turnover : KRW 113.6 Bil. [USD 110 Mil.)(FY 2016)

▣ Headquarter : Gimcheon-si, Gyeongsangbuk-do

- Factory #1 : High-tech Welding, Precision Balancing, & Machining Lines

- Factory #2 : Center Section Assembly & Balancing, General Turbocharger Assembly Line

- R&D Center : R&D, Test evaluation , Prototype Production

High-Performance Tuning Turbo Development

▣ Seoul Office : Sales, Finance, R&D Center

▣ Ulsan, Pyeongtaek Factories : Modular assembly / Quality Management

▣ Overseas Subsidiaries

- Shanghai Office : Sales (Oct. 2013)

- Wuxi Factory : Production (Jun. 2014)

1st Factory

2nd Factory

China Wuxi Factory

R&D Center

Shanghai Office

[Sales]

Seoul Office

Sales HQ

R&D Center

Finance

Pyeongtaek Factory

Module assembly

Gimcheon HQ & Factory

R&D Center

Management Support HQ

Accounting

Production HQ

Quality HQ

Ulsan Factory

Module assembly

Wuxi Factory [Production]

04. Company Profile - Location

04. Company Profile - Production Capacity

Production Capacity of

1st Factory and 2nd Factory

0.85M / year

[Machining, C/R & T/C Assembly]

Gimcheon Factory

1st Factory

2nd Factory

R&D Center

3rd Factory & R&D Center (Plan to construct in 2021

Production Capacity of 3rd Factory

(Start of construction in 2019)

2.15M / year

[Machining, C/R & T/C Assembly]

Total Production Capacity

3M / year

1994 2000 2005 2008 2013 2022

Foundation Production

Technology Key Components

Procurement

Core Technology

Development Multi-national

Operation

Global Top

Turbocharger Maker

• Entering

Turbocharger

market

• Technical

Cooperation

with Mitsubishi

Heavy

Industries

• Localization of

key components

assembling

technology

• Localizing of

core

component’s

material and

machining

• Establishment of

R&D Center and

second facility

• Commended,

Advanced

Technology

Center (ATC)

• Extended local

application

• Global Production

Network

• Customer Oriented local supply & service

to Global OEMs

• GM 2014 SOY Award

• MOU With TAMU

• Technical cooperation with FEV

• Cooperation of overseas R&D Centers

2017

04. Company Profile - Our History

• Simple

Assembly

04. Company Profile - Organization

CEO

Management HQ Quality HQ Sales HQ

Auditor

BOD

Admin. Team

IT Team

Accounting Team

SQE Team

QM Team

Sales Team

Sales Management

Team

Production

Management Team

Production HQ

Production Team

Production

Engineering Team

R&D Center

AE Team

Advanced Design

Team

Mass Production

Design Team

Planning Team

Test & Evaluation

Team

Proto Sample

Procurement Team

Parts Sourcing

Team Wuxi Corporation

Shanghai

Corporation

Finance Team

Expecting Higher Growth Rate for Turbocharged Vehicle

General Vehicle sales Predictions Turbo Vehicle sales Prediction

05. Market Outlook – Growth Forecast

Average growth rate 4%

Average growth rate 11%

05. Market Outlook – Growth Potential

2019

41%

2014

23%

2019

38%

2014

21%

CHINA NORTH AMERICA

INDIA JAPAN KOREA EUROPE

2019

48%

2014

46%

2019

23% 2014

18%

2019

45% 2019

24% 2014

42% 2014

17%

2019

69%

2014

67%

SOUTH AMERICA

Turbo Vehicle Market Forecasts by Regions

06. Keyyang Records

Diesel WG Turbocharger

Diesel VG Turbocharger

Gasoline WG Turbocharger

“ WG Turbocharger for Gasoline and Diesel, VG Turbocharger for Diesel”

Hyundai Sonata

Product Segments in Last 6 Years

Increase of WG Turbocharger for Gsaoline

Hyundai i20

CHEVROLET

Captiva

2012 2013 2014 2015 2016 2017

Technical Partnership with Research Institutes

• Expending international technical cooperation network including TAMU in US, VKI in Belgium, and

FEV in Germany.

• As a member of commissioner group, we support Turbomachinery Research Consortium of TAMU.

• Building a strong Academic-Industrial cooperation with various Korean Universities and research

centers to update technical capabilities.

06. Academic-Industrial Cooperation

Technology Development Agreement with TAMU

• Minister of the Ministry of Trade, Industry & Energy had attended at the signing ceremony.

• Agreement for 5 years Joint Research Program with Texas A & M Univ.

• Program includes Rotor Dynamics Technology, Aerodynamic Analysis, and NVH of High-speed rotating

parts

06. Academic-Industrial Cooperation

Investment for Technology Development

• Investment in the highest spec. performance testing equipment and cutting-edge R&D Facilities

• KRW 6.5 billion [USD 6 Mil.] of average annual R & D investment, (Abt. 5% of sales)

-> Approximately KRW 28.4 billion [USD 27 Mil.] (Abt. 11% by 2020)

07. R&D – Investment

• Qiangyi Automotive Parts(Wuxi) Co., Ltd.

• Site ： No. 6-12 Changhui Road, Wuxi Huishan Economic Development Zone

• Area ：4,800㎡ ( 51,700 sq. ft. )

• Production Capacity: 1st stage 1.75 mil units/Yr,

2nd stage 3 mil units/Yr

• Established in Jun. 2014

08. Establishment of global production base

Keyyang at Shanghai Motor Show in 2015 & 2017

9. Drive into New Market

• Xcargot turbo for high-end performance engine also exhibited

[200 bhp ~ 800 bhp]

Serving Chinese market with cutting-edge technology

• Signing a business agreement with Shanghai Automotive (SAIC), one of 3 main

automotive groups in China

• Signing a partnership contract with Dongfeng Motor, an emerging automotive group in

China

• Supply to Beijing Automotive (BAIC) – Hyundai Motors (HMC), 4th Qtr., 2019

• Supply to Dongfeng Motor – Kia, 4th Qtr., 2019

09. Drive into New Market

Our cutting-edge technology acknowledged globally

• GM SOY AWARD 2014 & 2016 『SUPPLIER OF THE YEAR』 ［General Motors in Detroit ]

- Keyyang is the first and only awarded Turbocharger Supplier for GM

• GM gave TASL (Technically Approved Supplier List) in the turbocharger design field

10. R&D - Achievement

▶ GM SOY : Award for 50 best companies of GM’s global 4000 companies.

▶ GM TASL : GM’s technical inspection system to register and approve as a global supplier.

Outstanding Engine Performance with Keyyang’s Technology

Hyundai / Kia awarded Top 10 Engines in America, 2017 [KAPPA 1.4L gasoline turbo Eng.]

Dongfeng awarded Top 10 Engines in China, 2017 [126 A 1.5L gasoline turbo Eng.]

10. R&D - Achievement

[ KAPPA 1.4L gasoline turbocharger ] [ 126A gasoline turbocharger ]

Keyyang Precision Co., Ltd.

- Green Energy Company -

Thank you