Hankook Tire Co., Ltd. Business Report FY ended Dec. 2015

Highlights in FY2015 (ended Dec. 2015)

Financial Overview (Consolidated)

(in millions of won)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 Rate of
change (%)
Remarks
Sales 6,428,172 6,680,847 (3.8) -
Operating income 884,990 1,031,636 (14.2) -
Net income 656,504 699,295 (6.1) -

Contracts

BMW
-The Company will supply its Ventus S1 evo2 Runflat tires and Winter i*cept evo Runflat tires as original equipment on the BMW 7 series. (From a press release on March 22, 2016)

Audi
-The Company will supply its Ventus S1 evo2 tires as original equipment on Audi's new A4, A4 Avant, and S4. (From a press release on February 16, 2016)

Daimler
-The Company has been awarded a contract from Daimler to supply its e-cube Max tires and Smart Flex tires as original equipment on Mercedes Benz trucks. These tires will be fitted on the Actros large trucks and the Atego mid-size trucks. (From a press release on December 22, 2015)

-The Company will supply its AL10 and DL10 long-distance tires and AM06 and DM03 on- and off-road tires for Daimler's new Mercedes-Benz ACTROS heavy-duty trucks. The sizes of the AL10 tires will be 295/80R22.5 and 385/55R22.5, those of the DL10 tires will be 295/80R22.5 and 315/70R22.5, and those of the AM06 and DM03 will be 315/80R22.5. (From a press release on June 3, 2015)

Toyota

-The Company will supply its Dynapro HT tires as original equipment on the 2016 Toyota Tacoma pickup trucks for the North American market. The tire size will be P245/75R16S. (From a press release on December 2, 2015)

Ford
-The Company will supply its Ventus S1 noble2 tires as original equipment tires for Ford's 2016 Lincoln MKX crossover SUVs. The tire size will be 245/50R20. (From a press release on November 24, 2015)

-The Company will supply OE tires for Ford's medium-duty trucks, the F650 and F750. The Company will provide two types of 19.5-inceh tires, AH11 and DH07; and two types of 22.5-inch tires, AH22 and DH15. (From a press release on July 29, 2015)

-The Company will supply its Ventus S1 Noble2 tire for the 2015 model-year Ford Mustang. The tire size will be 235/55R17H. (From a press release on February 10, 2015)

Volkswagen
-The Company announced that its Ventus Prime2 Sealguard tires will be fitted as original equipment on the Volkswagen Touran. The tire size will be 215/55R17. This is the first time that the company will supply its self-sealing tires to an automaker. (From a press release on September 15, 2015)

Porsche
-The Company announced that its Ventus S1 evo2 SUV tires will be used as original equipment on the Porsche Macan crossover SUV. According to Hankook, this is the first time that a Porsche model will be fitted with original equipment tires produced by a Korean company. (From a press release on April 14, 2015)

Share acquisition

-The Company announced that it has acquired 20,806,200 Halla Visteon Climate Control shares from Visteon International Holdings Inc., and currently owns 19.49 percent of Halla Visteon. (From a press release on June 10, 2015)

R&D Structure

Facility Location
Main R&D Center Daejeon, Korea
Akron Technical Center Ohio, USA
China Technical Center (CTC) Jiaxing, Zheziang Province, China
Europe Technical Center (ETC) Hannover, Germany
Japan Technical Liaison office (JTC) Osaka, Japan


-The Company will set up a tire R&D center in Taean, Chungcheongnam-do. The center will have a land area of 1.52 million square meters, and will complete test roads by 2018 and an R&D center by 2020. (From a press release on February 19, 2016)

-The Company announced that it will construct a test center in Ivalo, Finland. The center is scheduled to open in December 2016. It will be operated jointly by Hankook Tire's main R&D center and Europe Technical Center in Hannover, Germany. (From a press release on December 17, 2015)

R&D Expenditure

(in millions of won)
FY ended Dec. 31, 2015 FY ended Dec. 31, 2014 FY ended Dec. 31, 2013
Amount 149,005 155,294 123,936
% of sales 2.3% 2.3 1.8%

R&D Activities

-The Company has developed and completed real-car testing of its new Hankook iFlex airless tires. Testing was performed using an electric vehicle and included durability testing, rigidity testing, safety testing, slalom testing and high-speed testing (up to 130km/h), which all showed favorable results. (From a press release on July 9, 2015)

Capital Expenditure (FY ended Dec. 31, 2015)

(in millions of won)
Planned amount of investment Amount invested
Korea New facilities and equipment 329,080 169,652
Maintenance and repair 212,560 149,387
China New facilities and equipment 200,818 204,017
Maintenance and repair 85,794 53,577
Hungary New facilities and equipment 20,732 37,587
Maintenance and repair 20,014 17,165
Indonesia New facilities and equipment 191,197 191,204
Maintenance and repair 5,158 3,645
USA New facilities and equipment 338,216 160,256
Maintenance and repair - -
Total 1,403,569 986,490