Dear Fellow Employees,

 

A New Year has dawned upon us. I wish you and your family a hopeful and blissful New Year.

 

We are ushering in the New Year with a heavy sense of responsibility after battling through numerous adversities and changes last year. The picture does not seem very cheerful this year either—the New Year will challenge us with the persisting global economic stagnation, plummeting oil prices and intensifying competition with international peers such as China and Japan.

 

We find ourselves at a critical juncture, where we need to rise above external difficulties surrounding us while seeking recovery of our competitiveness through internal changes and innovations.

 

Dear Fellow Employees,

 

For 2015, HHI set its order target at 22.95 billion dollars and sales target at 24.3259 trillion won. Indeed, these goals are lofty, but easily reachable if we make concerted efforts to revive our competitiveness. In 2015, we must turn in a profit to lay the foundation for renewed growth.

 

With all this in mind, we will make sure that the 2015 will mark the beginning of our big step forward on the basis of revived competitiveness. Towards this end, we will focus on achieving the following objectives:

 

First, price competitiveness.

 

To survive and thrive amid fierce competitions, it is essential to recoup our price competitiveness. HHI initiated its competence-enhancing efforts for each of its business divisions by launching a special TF, and redefined the position of division heads as representatives to beef up total responsibility management. This year, more concrete measures need to be outlined and put into practice. This issue being indispensible to our survival, the task of enhancing price competitiveness should not end up as mere words, but rank as a top priority this year.

 

Second, a workplace that is safer and systemized.

 

Production facilities and workers are the most valued assets of HHI, and operation thereof the barometer of our competitiveness. Cutting out waste and material excesses, combined with systematic operation, will help enhance our product competitiveness.

 

In particular, the issue of safety deserves more thoughts this year. All employees should be mindful of safety hazards at all times. Let us break away from complacency, and keep occupational hazards at bay.

 

Last but not least, changing the corporate culture.

 

Unchanging companies end up as laggards, and a bureaucratic corporate culture makes a dull company, discouraging talented people from joining the company or encouraging them to leave the company. Now, HHI should seek increased dynamism and energy by driving changes in leaders. When executives change, team heads change, and the words and actions of leaders can boost the morale and enthusiasm of young workers. I would like to sincerely ask our executives, department heads and team leaders to take a key role in instilling vigor and vitality into the company this year.

 

Dear Fellow Employees,

 

The business environment is getting increasingly unfavorable, and a number of challenges are lurking in front of us. Yet, that should not discourage us from making progress.

 

We have time and again triumphed over adversity of one kind or another with unyielding dedication and relentless enthusiasm for the last four decades. If we remain firmly committed to our goals, a different outcome will greet us at the end of the year. Let us look confidently forward and rise up to challenges of 2015 with optimism.

 

Once again, I wish you all health and happiness in this Year of the Sheep. Thank you.

 

January 5, 2015

 

Kwon Oh-gap

President & CEO