Hankook Tire_Business Report FY2009

Business Highlights

Highlights in FY2009 (ended Dec. 2009)

Financial Overview (Non-consolidated)

(in millions of won)
- FY2009 FY2008 Rate of
Sales 2,811,860 2,644,236 6.3% - Sales increased thanks to a rise in sales of ultra high performance (UHP) tires in Korea as well as continued strong demand from its customers overseas.

- Sales volume of OE tires increased 4 percent year-on-year.
Operating income 348,445 256,383 35.9% -
Net income 350,886 25,412 1,280.8% -

The Company announced the fiscal year 2009 business results of its tire division. (Fiscal year 2009 ended Dec. 2009.) Its sales worldwide reached 4,809.9 billion won, rising 18.0 percent from those in the previous year. Its operating income was 549.3 billion won, increasing by 380.9 percent year-on-year and setting a new record high for the company. This was the result of increased sales of UHP tires in Korea and an increase in OEM business with car manufacturers in China. Sales also grew in Europe, thanks to new programs with Audi and Volkswagen. In 2010, the company aims to generate 5,095.4 billion won in sales and 550.2 billion won in operating profit. (From a press release on Jan. 18, 2010)


The Company will supply the Ventus S1 evo ultra high performance tires to Audi for installation on the A3, A3 Sportback, and A3 Cabrio, which will be launched for sale in Germany. Although since 2008 its tires have been featured on Audi's vehicles sold in China, this will be the first time that the tires will be supplied to Audi's plant in Germany. (From a press release on Jun. 4, 2009)

The Company has begun supplying Volkswagen's Jetta, Jetta SportWagen and New Beetle with Optimo H725A tires, manufactured at Volkswagen's Puebla, Mexico plant. This development represents a significant increase in OE fitments on Volkswagens to be sold in the U.S. and Canada. (From a press release on Apr. 15, 2009)


R&D Structure

Facility Location
Main R&D Center Daejeon,
Akron Technical Center Ohio,
China Technical Center
Zheziang Province
Europe Technical Center
Japan Technical Liaison office

R&D Expenditure

(in millions of won)
- FY2009 FY2008 FY2007
Amount 95,269 85,846 83,243
% of sales 3.4% 3.2% 3.7%

Investment Activities

Capital Expenditure

-The Company iinvested a total of 193,753 million won in FY2009, focusing on expanding its production capacity.

-The planned amount of investment in 2010 is 244,907 million won, which includes 56,350 million won to be spent for installing additional production facilities.


Investment Projects

The Company plans to invest 230 million euros in its Hungary plant for the next two years. Following the completion of the plant extension, it will double its present production of 5 million tires to 10 million tires per year by 2011. (From a press release on Sep. 10, 2009)