26
Finance Team-IR 2011.07.26 2011 Hankook Tire 2nd Quarter Result
Finance Team-IR2011.07.26
2011 Hankook Tire2nd Quarter Result
The information in this presentation is based upon management forecasts and
reflects prevailing conditions and our views as of this date, all of which are
accordingly subject to change. In preparing this presentation, we have relied
upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources of which was
provided by us or which was reviewed by us.
The information in this presentation does not take into account the effects of a
Finance Team 2
The information in this presentation does not take into account the effects of a
possible transaction or transactions involving an actual or potential change of
control, which may have significant valuation and other effects.
Contents
2011 2Q Business Result
1. Consolidated Result
Finance Team 3
2. Current IssueAppendix- Financial Statements
Contents
2011 2Q Business Result
1. Consolidated Result
Finance Team 4
2. Current IssueAppendix- Financial Statements
[ unit : 100 Mil KRW]
GlobalKORCHNHUNGlobalKORCHNHUN
Sales Operating Profit
1. Consolidated Result
(1) Consolidated Sales and Operating Profit Trend (Global/Korea : K-IFRS, CHN/Hungary : Local GAAP)
12,361 13,061
14,394 13,823
14,599 15,801
7,785 8,223 8,389 9,147 9,211 9,687
3,249 3,714 3,824 3,789 3,933 4,486
790 748 829 862 1,190 1,605
2,041
1,666 1,553
895
1,757
1,107 1,489
1,283 1,111
913 1,353
850 345 192
94 56 130 162
[ unit : 100 Mil KRW]
10 1Q 10 2Q 10 3Q 10 4Q 11 1Q 11 2Q
HUN HUNKORCHNHUN
Operating Margin10 1Q 10 2Q 10 3Q 10 4Q 11 1Q 11 2Q
10 1Q 10 2Q 10 3Q 10 4Q 11 1Q 11 2Q
-Consolidated Sales : YoY 21% ↑, QoQ 8.2% ↑ Sales increased about 18%(KOR), 21%(CHN),HUN(115%) over the same period in the previous year.
-Operating Profit : YoY 33.5% ↓, QoQ 37.0% ↓Operating Profit decreased 33.7%(KOR), 42%(CHN),
whereas Hungary’s OP increased about 119% over the same period in the previous year.
Finance Team
Global5
790 748 829 862
43 91 111 70 74 46
17%
13%
11% 6%
12%
7%
19%
16%
13%
10%
15%
9%
11%
5%2%
1%2% 2%
9%
10%
6% 6%
11%
10%
20,17521,63321,63320,332[ unit : 1,000]
Volume
1. Consolidated Result
(2) Global Production
Volume
YoY 3.2% ↑
VolumeVolumeVolumeVolume
QoQ 4.1% ↑
VolumeVolumeVolumeVolume
YoY 0.8% ↑
VolumeVolumeVolumeVolume
QoQ 4.5% ↑
VolumeVolumeVolumeVolume
YoY 69.8% ↑
VolumeVolumeVolumeVolume
QoQ 26.2% ↑
Volume
YoY 7.2% ↑
Volume
QoQ 6.4%↑
20,17521,63321,633
Global
20,332
KOR
11,83311,83311,467 11,3662Q 2010
1Q 2011
2Q 2011
[ unit : 1,000]
7,2867,286
CHN
7,227 6,974
Finance Team 6
HUN
2,5142,5141,480 1,991
1. Consolidated Result
(3) Global Capacity Utilization Rate
80%
90%
100%
50%
60%
70%
09-09 10 11 12 01 10 02 03 04 05 06 07 08 09 10 11 12 01 11 02 03 04 05 06
Korea
China
Hungary
Average
Finance Team 7
1) Sales Breakdown by Region(4) Global Sales Breakdown / UHPT Sales1. Consolidated Result
[unit : 100 Mil KRW]YoY QoQAmt. % Amt. % Amt. % % %KOR 2,457 19.3% 2,856 19.9% 2,690 17.0% 9.5% -5.8%CHN 2,397 18.8% 2,637 18.4% 3,113 19.7% 29.9% 18.1%N.America 2,218 17.4% 2,552 17.8% 2,807 17.8% 26.5% 10.0%Europe 2,887 22.7% 3,435 24.0% 3,782 24.0% 31.0% 10.1%Others 2,758 21.7% 2,854 19.9% 3,386 21.5% 22.8% 18.6%Total 12,716 100.0% 14,334 100.0% 15,778 100.0% 24.1% 10.1%2010 2Q 2011 1Q 2011 2Q
2) UHPT Sales
Finance Team 8
☞ The sales and units were totaled up by production region standard.
Total 12,716 100.0% 14,334 100.0% 15,778 100.0% 24.1% 10.1%[unit : 100 Mil KRW, '000 unit]YoY QoQAmt. % Amt. % Amt. % % %Sales 12,716 100.0% 14,334 100.0% 15,778 100.0% 24.1% 10.1%UHPT Sales 2,351 18.5% 3,153 22.0% 3,640 23.1% 54.9% 15.5%KOR 314 13.4% 421 13.3% 434 11.9% 38.0% 3.2%CHN 411 17.5% 468 14.8% 529 14.5% 28.8% 13.1%N.America 582 24.8% 724 22.9% 840 23.1% 44.2% 16.0%Europe 699 29.7% 1,157 36.7% 1,244 34.2% 78.1% 7.5%Others 345 14.7% 384 12.2% 594 16.3% 72.2% 54.6%UHPT Sales Unit 3,736 4,413 5,067 35.6% 14.8%
2010 2Q 2011 1Q 2011 2Q
5,113 4,414 6,117
22,816 23,751 24,631
22,871 23,590 23,625
22,880 23,553 25,050
AssetAssetAssetAsset [ Unit : 100 Mil KRW]
55,15157,954
60,532
Inventories
Property & Equipment
Other Assets
1. Consolidated Result
(5) Consolidated B/S
Current Liab.
Non- Current Liab.
Capital
Liabilities and CapitalLiabilities and CapitalLiabilities and CapitalLiabilities and Capital
60,532
[ Unit : 100 Mil KRW]
55,15157,954
27,222 29,789 29,784
9,400 10,811 11,857
22,871 23,590 23,625
2010 2Q2010 2Q2010 2Q2010 2Q 2010 3Q2010 3Q2010 3Q2010 3Q 2010 4Q2010 4Q2010 4Q2010 4Q 2011 1Q2011 1Q2011 1Q2011 1Q 2011 2Q2011 2Q2011 2Q2011 2Q
Debt Ratio
Net Debt Ratio
Net worth to
Asset
2010 4Q 2011 1Q 2011 2Q
9Finance Team
2010 4Q 2011 1Q 2011 2Q
147.0% 144.3% 141.7% 144.0% 145.8%
73.9% 67.0%
43.4%55.3% 63.5%
40.5% 40.9% 41.4% 41.0% 40.7%
8,925
9,323
7,500
8,500
9,500
10,500
11,500
Inventory
Sale out
Inventory days
(6) Global Inventory Index
1. Consolidated Result
[unit : 1,000, Day]
35 39
30 32 32 31 32 30 28 27 26
29 28
34
27 30 29 29
3,500
4,500
5,500
6,500
7,500
Jan.
2010
Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.
2011
Feb. Mar. Apr. May. Jun.
Finance Team 10
-363
334227
12
53
-300
-100
100
300
500
-41
25-5
-6
-276
0
-200
-150
-100
-50
0
50
-128
519
-406
7
-1
-400
-300
-200
-100
0
100
-532
410231
-692
-257
52
-1000
-800
-600
-400
-200
0
200
400
600
(7) F/X Position
154283
346280
-47
588
-5
USDUSDUSDUSD EUREUREUREUR OTHERSOTHERSOTHERSOTHERS USDUSDUSDUSD EUREUREUREUR OTHERSOTHERSOTHERSOTHERS USDUSDUSDUSD EUREUREUREUR OTHERSOTHERSOTHERSOTHERS USDUSDUSDUSD EUREUREUREUR OTHERSOTHERSOTHERSOTHERS
Cash FlowCash FlowCash FlowCash Flow
F/ X F/ X F/ X F/ X
B/ S B/ S B/ S B/ S
F/ X F/ X F/ X F/ X
1. Consolidated Result [unit : Mil USD, Mil EUR]
-280
-700
-500
-300
-250
-600
-500
-1400
-1200
-1000
10 1Q 10 2Q 10 3Q 10 4Q 11 1Q 11 2Q
USD/KRW 1,143 1,170 1,179 1,133 1,121 1,084
EUR/KRW 1,572 1,481 1,528 1,540 1,532 1,559
CNY/KRW 168 170 175 170 170 167
USD/CNY 6.827 6.824 6.771 6.662 6.579 6.502
EUR/HUF 265 285 276 279 273 266
HUF/KRW 5.93 5.19 5.53 5.51 5.62 5.85
Summing up Hankook Global F/X Position, HK benefiting WEAK USD and STRONG Cross Currency vs KRW. Company may keep current F/X Position structure.
Finance Team 11
KOR CHN HUNGlobal-1,223
-643 -251-534
※ Notice: This page doesn’t show full y consolidated company result.
The chart shows cash flows from Korea, China and Hungary production bases
excluding non-tire segment and overseas sales subsidiaries.
3,136
4,078
5,224
3,477
USD/TonUSD/TonUSD/TonUSD/Ton
N/RS/RW- Average
2009200920092009 Jan.Jan.Jan.Jan. 2010201020102010 Dec.Dec.Dec.Dec. 2010201020102010 Jul.Jul.Jul.Jul. 2011201120112011
RSS#3 1,920 3,092 4,734 4,753
TSR20 1,800 3,037 4,677 4,612
SBR 1502 1,518 2,630 2,856 4,250
NR, SR Spot Price
(8) Raw Material Cost
1. Consolidated Result
2,597 2,816
3,107
2,639
1,644 1,465
1,669
2,113
2,914 3,096 3,136
2,382
3,112
2,568
2,186
1,791 1,683
1,913
2,272 2,487 2,552
2,660
3,056
2,084
2,358 2,338
2,018
1,608 1,529 1,657
1,883
2,170 2,245 2,291
2,651
3,123
08 2Q 08 3Q 08 4Q 09 1Q 09 2Q 09 3Q 09 4Q 10 1Q 10 2Q 10 3Q 10 4Q 11 1Q 11 2Q
Finance Team 12
Contents
2011 1Q Business Result
1. Consolidated Result2. Current Issue
Appendix- Financial Statements
Finance Team 13
(1) Raw Material Spot Price Surge- The cost of SBR has steadily increased and SBR 1502 spot price is USD 4,250/Ton. - Reasons of current strong S/R price :1) The short supply of Butadiene : The petrol company announced its plan to go off stream.
(Goodyear, Kumho Petrol etc.)2) The demand for tire products continues to grow.
- According to SICOM, Natural Rubber(TSR20) spot price is about USD 4,600 /ton.
2. Current Issue
- To pass on the high input costs, we continuously raised product price. - An additional price increasing and the percentage of price hike will be different by region.
(2) Product Price Hike
Finance Team 14
Contents
2011 2Q Business Result
1. Consolidated Result2. Current Issue
Appendix
Finance Team
Appendix. F/S – Consolidated I/S
[unit : 100 Mil KRW]2010 2Q 2011 1Q 2011 2Q YoY QoQ
Amt. % Amt. % Amt. % (%) (%)Sales 13,061 100.0% 14,599 100.0% 15,801 100.0% 21.0 8.2
COGS 8,891 68.1% 10,437 71.5% 12,059 76.3% 35.6 15.5
Gross Profit 4,170 31.9% 4,162 28.5% 3,743 23.7% -10.2 -10.1
SG&A 2,505 19.2% 2,405 16.5% 2,636 16.7% 5.2 9.6
Finance Team 16
SG&A 2,505 19.2% 2,405 16.5% 2,636 16.7% 5.2 9.6
O.P Margin 1,666 12.8% 1,757 12.0% 1,107 7.0% -33.6 -37.0
Non Operating -265 -2.0% 202 1.4% 11 0.1% - -94.6
Ordinary Profit 1,401 10.7% 1,959 13.4% 1,118 7.1% -20.2 -42.9
E B I T D A 2,486 19.0% 2,562 17.5% 2,060 13.0% -17.1 -19.6
Depreciation 820 6.3% 817 5.6% 954 6.0% 16.3 16.8
[Unit: 100 Mil KRW]2010 2Q
(a) 2011 1Q 2011 2Q(b)
Diff.(b-a)
S G & A 2,505 2,405 2,636 147Salaries 347 469 429 82Depreciation 133 82 139 6Domestic Trans. Cost 304 364 314 10Ocean Freight 518 353 485 -33Advertising Expenses 326 242 351 25Others 572 669 682 110Working R&D exp. cost 223 235 251 28
Appendix. F/S – Consolidated SG&A, Non-OP Gain and Loss Detail
Working R&D exp. cost 223 235 251 28Others Oper. Gain -48 -144 -129 -81Others Oper. Loss 129 135 114 -15
N/O Gain &Loss -265 202 11 276Interest gain (expense) -123 -89 -130 -7Foreign Currency Trans. 32 -2 98 66Foreign Exchange Trans. -253 251 11 264 Share of profit(loss)for using equity method 56 38 35 -21
Others 23 4 -3 -26
Finance Team 17
Appendix. F/S – Korea I/S (IFRS)
[unit : 100 Mil KRW]2010 2Q 2011 1Q 2011 2Q YoY QoQ
Amt. % Amt. % Amt. % (%) (%)Sales 8,223 100.0% 9,211 100.0% 9,687 100.0% 17.8 5.2
COGS 5,788 70.4% 6,786 73.7% 7,616 78.6% 31.6 12.2
Gross Profit 2,436 29.6% 2,425 26.3% 2,071 21.4% -15.0 -14.6
SG&A 1,153 14.0% 1,072 11.6% 1,221 12.6% 5.9 13.9
Finance Team 18
SG&A 1,153 14.0% 1,072 11.6% 1,221 12.6% 5.9 13.9
O.P Margin 1,283 15.6% 1,353 14.7% 850 8.8% -33.7 -37.2Non Operating -75 -0.9% 45 0.5% 51 0.5% - 14.3Ordinary Profit 1,207 14.7% 1,398 15.2% 901 9.3% -25.3 -35.5
E B I T D A 1,706 20.7% 1,725 18.7% 1,287 13.3% -24.6 -25.4Depreciation 423 5.1% 372 4.0% 437 4.5% 3.3 17.5
[Unit: 100 Mil KRW]2010 2Q
(a) 2011 1Q 2011 2Q(b)
Diff.(b-a)
S G & A 1,153 1,072 1,221 68Salaries 299 325 343 44Ocean Freight 316 310 307 -9Product Warranty Exp. 15 18 28 14Employee Benefits 44 37 45 1Export Sales Expenses 22 24 24 2Depreciation 76 68 79 3
Appendix. F/S – Korea(IFRS) SG&A, Non-OP Gain and Loss Detail
Depreciation 76 68 79 3Advertising Expenses 209 145 311 102Others 172 145 84 -89
N/O Gain &Loss -75 45 51 127Interest gain (expense) 4 25 -10 -14Foreign Currency Trans. 32 -6 42 10Foreign Exchange Trans. -78 35 -4 74Dividend Received 0 18 6 5
Others -34 -26 17 51
Finance Team 19
Appendix. F/S – China I/S
[unit : 100 Mil RMB]2010 2Q 2011 1Q 2011 2Q YoY QoQ
Amt. % Amt. % Amt. % (%) (%)Sales 21.78 100.0% 23.10 100.0% 26.91 100.0% 23.5 16.5
COGS 17.17 78.8% 19.23 83.3% 22.62 84.1% 31.7 17.6
Gross Profit 4.61 21.2% 3.87 16.7% 4.29 15.9% -7.0 10.8
SG&A 3.48 16.0% 3.34 14.4% 3.62 13.5% 4.0 8.6
Finance Team 20
SG&A 3.48 16.0% 3.34 14.4% 3.62 13.5% 4.0 8.6
O.P Margin 1.13 5.2% 0.53 2.3% 0.67 2.5% -41.0 25.1
Non Operating -0.82 -3.8% -0.01 0.0% -0.33 -1.2% - -Ordinary Profit 0.31 1.4% 0.52 2.3% 0.34 1.3% 10.3 -35.1
E B I T D A 2.43 11.2% 1.87 8.1% 2.02 7.5% -17.1 8.2
Depreciation 1.31 6.0% 1.33 5.8% 1.35 5.0% 3.5 1.4
[Unit: Mil RMB]2010 2Q
(a) 2011 1Q 2011 2Q(b)
Diff.(b-a)
S G & A 348 334 362 14Salaries 30 37 37 7Royalty Expense 82 86 106 24Cunsulting 15 16 20 4Export Commission 6 6 6Depreciation 14 14 14 0Domestic Trans. Cost 48 48 53 5
Appendix. F/S – China SG&A, Non-OP Gain and Loss Detail
Domestic Trans. Cost 48 48 53 5Advertising Expenses 42 22 8 -34Others 111 106 119 8
N/O Gain &Loss -82 -1 -33 49Foreign Currency Trans. 8 31 46 38Interest expense -41 -42 -47 -6others -49 10 -31 18
Finance Team 21
Appendix. F/S – Hungary I/S
[unit : 100 Mil HUF]2010 2Q 2011 1Q 2011 2Q YoY QoQ
Amt. % Amt. % Amt. % (%) (%)Sales 143.98 100.0% 211.83 100.0% 274.34 100.0% 90.5 29.5
COGS 111.01 77.1% 162.86 76.9% 216.01 78.7% 94.6 32.6
Gross Profit 32.97 22.9% 48.97 23.1% 58.33 21.3% 76.9 19.1
SG&A 18.70 13.0% 25.83 12.2% 30.59 11.2% 63.6 18.4
Finance Team 22
SG&A 18.70 13.0% 25.83 12.2% 30.59 11.2% 63.6 18.4
O.P Margin 14.28 9.9% 23.15 10.9% 27.74 10.1% 94.3 19.8
Non Operating -33.60 -23.3% 25.12 11.9% -7.22 -2.6% - -Ordinary Profit -19.32 -13.4% 48.26 22.8% 20.51 7.5% - -
E B I T D A 38.84 27.0% 54.46 25.7% 67.97 24.8% 75.0 24.8
Depreciation 24.56 17.1% 31.32 14.8% 40.23 14.7% 63.8 28.5
[Unit: Mil HUF]2010 2Q
(a)2011 1Q 2011 2Q
(b)Diff.(b-a)
S G & A 1,8701,8701,8701,870 2,5832,5832,5832,583 3,0593,0593,0593,059 1,1891,1891,1891,189
Salaries 48 62 68 20
Royalty Expense 716 1,059 1,372 656
Cunsulting 292 350 296 4
Export Commission 65 94 89 24
Depreciation 165 204 230 64
Domestic Trans. Cost
Appendix. F/S – Hungary SG&A, Non-OP Gain and Loss Detail
Domestic Trans. Cost 421 616 801 380
Advertising Expenses 0 0 1 1
Others 162 198 203 41
N/O Gain &Loss -3,360-3,360-3,360-3,360 2,5122,5122,5122,512 -722-722-722-722 2,6382,6382,6382,638
Foreign Currency Trans. -3,263 2,934 -1,031 2,233
Interest expense -271 -402 -496 -225
others 174 -21 804 630
Finance Team 23
[unit : 100 Mil KRW]2010 2011 1Q 2011 2Q Diff.
Amt. % Amt. % Amt. % Amt. %Assets 55,151 100.0% 57,954 100.0% 60,532 100.0% 5,381 9.8Current Assets 28,475 51.6% 30,487 52.6% 33,029 54.6% 4,554 16.0
Quick Assets 19,075 34.6% 19,676 34.0% 21,172 35.0% 2,097 11.0Inventories 9,400 17.0% 10,811 18.7% 11,857 19.6% 2,457 26.1
Non-current Assets 26,676 48.4% 27,467 47.4% 27,503 45.4% 827 3.1Investment Assets 3,425 6.2% 3,512 6.1% 3,518 5.8% 93 2.7
Appendix. F/S – IFRS B/S
Property&Equipment 22,871 41.5% 23,590 40.7% 23,625 39.0% 754 3.3Intangible Assets 380 0.7% 365 0.6% 360 0.6% -20 -5.3
Liabilities 32,335 58.6% 34,203 59.0% 35,901 59.3% 3,566 11.0Current Liabilities 27,222 49.4% 29,789 51.4% 29,784 49.2% 2,562 9.4Non-current Liabilities 5,113 9.3% 4,414 7.6% 6,117 10.1% 1,004 19.6Capital 22,816 41.4% 23,751 41.0% 24,631 40.7% 1,815 8.0Net Debt(Cash) 9,907 13,136 15,635 5,728 57.8Net Debt Ratio 43.4% 55.3% 63.5%Debt Ratio 141.7% 144.0% 145.8%Net worth to Assets 41.4% 41.0% 40.7%
Finance Team 24
[unit : 100 Mil KRW]2010 2011 1Q 2011 2Q Diff.
Amt. % Amt. % Amt. % Amt. %Assets 38,519 100.0% 39,487 100.0% 40,286 100.0% 1,767 4.6Current Assets 19,738 51.2% 20,139 51.0% 20,800 51.6% 1,062 5.4
Quick Assets 15,751 40.9% 15,488 39.2% 15,894 39.5% 143 0.9Inventories 3,987 10.4% 4,651 11.8% 4,906 12.2% 919 23.0
Non-current Assets 18,781 48.8% 19,348 49.0% 19,486 48.4% 705 3.8Investment Assets 6,332 16.4% 6,831 17.3% 7,218 17.9% 886 14.0
Appendix. F/S – Korea IFRS B/S (Parent)
Investment Assets 6,332 16.4% 6,831 17.3% 7,218 17.9% 886 14.0Property&Equipment 12,299 31.9% 12,373 31.3% 12,123 30.1% -176 -1.4
Intangible Assets 150 0.4% 144 0.4% 145 0.4% -5 -3.3Liabilities 14,420 37.4% 14,840 37.6% 14,715 36.5% 295 2.0Current Liabilities 12,170 31.6% 14,043 35.6% 13,852 34.4% 1,682 13.8Non-current Liabilities 2,250 5.8% 797 2.0% 863 2.1% -1,387 -61.6Capital 24,099 62.6% 24,647 62.4% 25,571 63.5% 1,472 6.1Net Debt(Cash) 1,386 1,531 3,490 2,104 151.8Net Debt Ratio 5.8% 6.2% 13.6%Debt Ratio 59.8% 60.2% 57.5%Net worth to Assets 62.6% 62.4% 63.5%
Finance Team 25
End of Document
