Hankook Tire announces 2020 financial results

- Reports global sales of KRW 6.454 trillion and an operating profit of KRW 628 billion
- Global operating profit increased 15.5% year-on-year, achieving improved performance despite COVID-19
- Sales of high-inch tires of 18 inches or higher increased 3%p year-on-year to amount to around 35% of the total sales, demonstrating qualitative growth
- Sales increase during the second half of the year in major regions such as Europe, North America and China is a key contributor
- Hankook Tire to continue expanding partnership with premium car makers and pioneer the electronic vehicle tire market

Seoul, Korea, February 5, 2021 - Global leading tire company Hankook Tire announced today the company’s 2020 financial results with consolidated global sales of KRW 6.454 trillion and an operating profit of KRW 628 billion.

In the midst of global economic slowdown due to the COVID-19 pandemic, Hankook Tire sustained qualitative growth as this year’s operating profit margin recorded 9.7% despite a marginal decline in sales revenue compared to the previous year. In particular, sales of high-inch tires - 18 inches or higher – attributed to the growth as it accounted for around 35% among total sales of passenger car tires, up 3%p YoY. Another key contributor is the rise in replacement tires sales that are profitable in regions such as Europe and North America. Stabilization of raw material costs has also contributed to higher operating profit.

The significance of Hankook’s financial performance in 2020 is complemented by the continued strategic application of the company’s global top-tier technology and excellence in product quality throughout the difficult year brought by the global pandemic. Even during the first half of 2020 when the business performance was expected to suffer significantly due to a sharp drop in global demand for tires, Hankook managed to post an operating surplus through the joint efforts throughout the company.

From the second half of the year, the company began showing signs of quick recovery as sales increased in some of the major regions. In the fourth quarter, sales of replacement tires rose YoY in regions such as Europe and North America. In China, sales of both original and replacement tires increased as sales of high-inch tires increased 12%p YoY to amount to around 40% of total sales.

Furthermore, Hankook gained remarkable recognition for its technology excellence in 2020. In addition to receiving top ratings in several tire tests, including Germany and the United Kingdom, Hankook was ranked as the best-selling brand across three categories from all-season to summer and winter tires in the European e-commerce platform, Tyre24, where the result was based on consumer preference survey.

Hankook also strengthened its standing as a premium brand by expanding its partnership with premium car makers, including the OE supply to Porsche's first high-performance electric sports car, Taycan, and to Audi’s top model in the Q product line, Audi RS Q8.

For 2021, which marks 80th anniversary for Hankook & Company, Hankook Tire has set the sales target at KRW 7 trillion. This year, Hankook plans to further solidify its brand value as a global top tier company by expanding sales of high-inch tires in major regions, supplying OE tires for premium cars, and by taking the lead in the electric vehicle market. The company also aims to continuously drive sustainable growth through optimizing distribution strategies for each region and diversifying the product portfolio based on its quality competitiveness.

Q4 2020 Consolidated Financial Result

(Unit: Billion KRW)	Q4 FY 2019	Q3 FY 2020	Q4 FY 2020
Sales	1,665	1,886	1,768
Operating Profit	117	225	228

 

(Unit: Million USD)	Q4 FY 2019	Q3 FY 2020	Q4 FY 2020
Sales	1,416	1,586	1,581
Operating Profit	99	189	204

 

(Unit: Million EUR)	Q4 FY 2019	Q3 FY 2020	Q4 FY 2020
Sales	1,278	1,358	1,326
Operating Profit	89	162	171

 

*Exchange Rates:

	Q4 FY 2019	Q3 FY 2020	Q4 FY 2020
USD / KRW	1,175.81	1,188.54	1,117.64
EUR / KRW	1,301.97	1,388.39	1,332.84

(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)

2020 Consolidated Financial Result

(Unit: Billion KRW)	FY 2019	FY 2020
Sales	6,883	6,454
Operating Profit	544	628

 

(Unit: Million USD)	FY 2019	FY 2020
Sales	5,904	5,469
Operating Profit	466	532

 

(Unit: Million EUR)	FY 2019	FY 2020
Sales	5,275	4,794
Operating Profit	416	466

 

*Exchange Rates:

	FY 2019	FY 2020
USD / KRW	1,165.65	1,180.05
EUR / KRW	1,304.81	1,345.99

(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)