Highlights in FY2011

Financial Overview (Consolidated)

(in millions of won)

	FY2011	FY2010	Rate of Change	Remarks
Sales	3,915,875	3,530,006	10.9%	-
Operating income	185,037	130,271	42.0%	-
Net income	(26,854)	(51,082)	-	-

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 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)

	FY2011	FY2010	FY2009
Amount	N.A.	50,049	63,270
% of sales	N.A.	1.9%	3.34%

Capital Expenditure

-During 2011, the Company invested a total of 60,370 million won in its three plants in Korea. By plant, it spent 36,212 million won in the Gwangju facility, 21,575 million won in the Gokseong facility, and 2,583 million won in the Pyeongtaek facility.
-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.