Business Overview

-The worldwide tire unit sales in the replacement and OE markets during the period indicated were as follows.

(in million of tires)

		FY2010	FY2009	FY2008
North American	Replacement tire units	50.8	50.0	51.4
	OE	15.9	12.7	19.7
Europe, Middle East and Africa Tire	Replacement tire units	55.6	52.8	55.9
	OE	16.4	13.2	17.7
Latin America	Replacement tire units	13.9	13.1	13.9
	OE	6.8	6.0	6.1
Asia pacific	Replacement tire units	12.7	12.1	12.9
	OE	8.7	7.1	6.9
Total	Replacement tire units	133.0	128.0	134.1
	OE	47.8	39.0	50.4
Total		180.8	167.0	184.5

-The increase in worldwide tire unit sales of 13.8 million units, or 8.2%, compared to 2009, included an increase of 8.8 million OE units, or 22.5%, due primarily to increases in the consumer markets in North American Tire and EMEA due to improved economic conditions resulting in higher demand for new vehicles.

Contracts

-The Company announced that Toyota has selected Dunlop SP Sport 7000 tires, in size P235/50R19, as standard fitment for the 2011 Sienna SE. The sale of this minivan will start in February 2010. (From a press release on January 8, 2010)

-The 2011 Toyota Sienna XLE will be outfitted with Goodyear Eagle RS-A tires as standard equipment. The vehicle comes with the tires in size P235/55R18 when it goes on sale in February 2010. (From a press release on January 8, 2010)

-The Company supplies its run-flat tire Eagle F1 SuperCar G:2 to GM. The tire, in sizes P275/35ZR18 and P325/30ZR19, has been selected as original equipment on the 2011 Chevrolet Corvette Z06. (From a press release on February 4, 2010)

-The Company supplies its ultra-high performance tire Eagle F1 SuperCar G:2 to Ford. The tire, in sizes P265/40ZR19 and P285/35ZR20, has been selected as original equipment on the 2011 Mustang Shelby GT500. (From a press release on February 10, 2010)

-The Company will supply tires as an original equipment fitment for the 2011 Ford Explorer. The standard tire fitment for the Explorer SE model will be Fortera HL tires in a P245/65R17 size. The car model is expected to go on sale winter 2010. (From a press release on October 15, 2010)

R&D Expenditure

(in million USD)

	FY2010	FY2009	FY2008
Overall	342	337	366

R&D Structure

-The Company owns and operates three research and development facilities and technical centers, and three tire proving grounds.

Capital Expenditure

(in million USD)

	FY2010	FY2009	FY2008
North American Tire	319	306	449
Europe, Middle East and Africa Tire	183	212	315
Latin American Tire	135	76	150
Asia Pacific Tire	281	134	106
Total Segment Capital Expenditures	918	728	1,020
Corporate	26	18	29
Total	944	746	1,049