Dear Respected Stakeholders,

Thanks to the dedication of our employees and the continued trust of our valued stakeholders, Kumho Tire achieved the highest revenue in its history. In 2024, we recorded revenue of KRW 4.5 trillion, marking a 12.1% increase year-on-year, and an operating profit of KRW 588.6 billion, a remarkable 43.2% growth compared to the previous year. These outstanding financial results were driven by our expansion in global markets and a strategic focus on high value-added products. In addition to financial performance, we have further strengthened our ESG practices, by embedding sustainability principles into our operations and maintaining strong evaluations in external ESG assessments.

Building on these encouraging achievements, Kumho Tire is preparing for changes in the global political, environmental, and regulatory landscape, with the aim of strengthening its position as a trusted and responsible company. As international regulations surrounding environmental protection, human rights, and ESG disclosures become increasingly widespread and stringent, ESG management has emerged as a critical pillar for business sustainability and long-term growth. Accordingly, Kumho Tire will not rest on its achievements, but will remain committed to earning your trust and advancing sustainable growth through the following initiatives.

First, Kumho Tire is undertaking a company-wide transformation to elevate its brand to a premium position. With "Leap to Premium Brand" as this year’s strategic focus, Kumho Tire aims to further enhance its brand value by boosting competitiveness in high value-added markets while expanding collaboration with premium automakers. To that end, we have identified strategic innovation priorities across areas such as strategy, quality, and marketing, and are accelerating implementation through cross-functional collaboration. These efforts will enable Kumho Tire to remain agile and responsive to rapidly changing market conditions, laying a strong foundation for its evolution into a top-tier global brand and long-term sustainable growth.

Second, Kumho Tire is decarbonizing by expanding its use of renewable energy. Kumho Tire is aligning with global efforts to address the climate crisis, aiming to achieve Net-Zero by 2045. We are implementing a carbon reduction strategy that spans the entire product lifecycle, from design, raw materials, manufacturing, transportation, use, and disposal. Solar power facilities have been installed at seven of eight global manufacturing sites located in Korea, China, and Vietnam to maximize on-site renewable energy generation. In China, we are further increasing renewable energy use through green power procurement. Notably, the Tianjin plant achieved RE50, meaning that 50% of total electricity used in the plant was sourced from renewable sources. Kumho Tire remains committed to broadening the use of renewable energy and reducing GHG emissions across the whole product life cycle.

Third, Kumho Tire is committed to advancing and embedding ESG management across its operations. To establish itself as a premium brand, Kumho Tire is enhancing management practices in key areas such as safety, human rights, supply chain, information security, compliance and ethics, and corporate governance. The ESG Management Committee led by the CEO and ESG Working Group promote internal alignment while driving issue-specific initiatives. Kumho Tire has established the Safety Advisory Committee and regularly holds the Global Safety Council, to foster a safety-first culture across the global operations. In the area of supply chain management, we are strengthening ESG awareness among suppliers by applying the Sustainable Supply Chain Policy, and conducting risk assessments to build a more responsible supply chain. Regarding governance, we remain committed to transparency and effectiveness by conducting Board self-assessments and scheduling shareholder meetings outside of peak days to enhance shareholder engagement.

Kumho Tire looks forward to continuing its journey of genuine growth with you, and appreciates your ongoing interest and support.
Thank you.

CEO of Kumho Tire

Iltaik Jung