Kumho Tire Co., Inc. Business Report FY2010

Business Highlights

Highlights in FY2010

Financial Overview (Non-consolidated)

(in millions of won)

-	FY2010 (ended Dec. 31)	FY2009	Rate of Change	Remarks
Sales	2,701,990	1,894,699	42.6%	-
Operating income	244,947	(213,579)	-	-
Net income	8,900	(776,168)	-	-

Contracts

-Chrysler
The Company was selected as an original equipment tire supplier for the Chrysler's 2011 Jeep Grand Cherokee destined for export. The tire sizes are 265/60R18 and 265/50R20. The vehicle is exported to around 100 countries in Europe, Asia, South America, Africa, the Middle East and other regions. In 2010, the tire company also won a contract to supply tires for the Mercedes-Benz Sprinter and the Ford Fiesta. (From a press release on Nov. 12, 2010)

-Daimler

The Company will supply tires for the Mercedes-Benz Sprinter, a delivery van manufactured by Daimler, starting in May 2010. The tires will be installed on the Sprinter that will be sold in Europe, North America and Asia. (From a press release on May 11, 2010)

R&D

R&D Structure

Facility	Location	Overview
Kumho R&D Center (K.R.D.C)	Gwangju Korea	-Year established : 1981 -Developing tires for the domestic and global market
Kumho Tire America Technical Center (K.A.T.C)	Ohio USA	-Year established : 1990 -Developing tires for the North American OEM market and the aftermarket
Kumho Tire Europe Technical Center (K.E.T.C)	Birmingham U.K	-Year established : 1997 -Developing high-performance tires for the European market
Kumho Tire China Technical Center (K.C.T.C)	Tianjin China	-Year established : 2006 -Developing high-performance tires for the Chinese and European markets

R&D Expenditure (Non-consolidated)

(in millions of won)

-	FY2010	FY2009	FY2008
Amount	50,049	63,270	65,278
% of sales	1.9%	3.34%	2.72%

Investment Activities

Capital Expenditure

-In 2010, the Company invested 85,148 million won in plants and equipment, mainly for increasing production capacity.

-Between 2010 and 2012, the Company plans to invest 79,959 million won in plants and equipment, mainly for increasing production capacity at its Vietnam plant.