Kumho Tire_Business Report FY2009

Business Highlights

Highlights in FY2009

Financial Overview (Non-consolidated)

(in millions of won)
- FY2009
Dec. 2009)
FY2008 Rate of
Sales 1,894,699 2,398,560 (21.0%) -Sales of tires totaled 1,829,856 million won, which accounted for 96.6 percent of the Company's overall sales.

-Exports made up 61.1 percent of the Company's total revenue.
Operating income (213,579) 36,259 - -
Net income (776,168) (200,356) - -



The company has been awarded a contract to supply tires for Daimler's large trucks. The tires will be featured on the Mercedes-Benz Actoros large trucks, starting in November 2009. The company has become the first Korean tire manufacturer to be chosen by the Mercedes-Benz commercial vehicle division to supply tires. (From a press release on Nov. 23, 2009)


R&D Structure

Facility Location Overview
Kumho R&D Center (K.R.D.C) Gwangju
-Year established : 1981

-Developing tires for the domestic and global market
Kumho Tire America Technical Center (K.A.T.C) Ohio
-Year established : 1990

-Developing tires for the North American OEM market and the aftermarket
Kumho Tire Europe Technical Center (K.E.T.C) Birmingham
-Year established : 1997

-Developing high-performance tires for the European market
Kumho Tire China Technical Center (K.C.T.C) Tianjin
-Year established : 2006

-Developing high-performance tires for the Chinese and European markets

The Company held a gala groundbreaking ceremony at the construction site of its new research center in Yong-in, Korea. It plans to spend around 70 billion won in this project, which is scheduled to be completed in late 2009. The new research facility, which will be called the Central Research Center, will function as the Group's development hub, integrating and managing the company's R&D activities conducted inside and outside Korea. The Company also revealed its plan to nearly double by 2015 the number of research staff, which now stands at 600. (From a press release on May 15, 2008)

R&D Expenditure (Non-consolidated)

(in millions of won)
- FY2009 FY2008 FY2007
Amount 63,270 65,278 58,839
% of sales 3.34% 2.72% 2.90%

Investment Activities

Capital Expenditure

-In 2009, the Company invested 65,148 million won in plants and equipment, mainly for increasing production capacity.

-In 2010, the Company plans to invest 110,804 million won in plants and equipment, mainly for increasing production capacity.