TIRE JOURNAL KUMHO TIRES MEMBERSHIP MAGAZINE 2013 NO.03

TIRE JOURNAL KUMHO TIRES MEMBERSHIP MAGAZINE 2013 NO.03

Pick up Getting back to BASICS,Getting back to GREEN Developed using nature-friendly rubber, filler oil and other environmental elements, the SOLUS KL21 has a very beautiful bamboo pattern design and provides fuel savings. With a focus on safety in addition to its reduced rolling resistance, the SOLUS KL21 is a perfect fit for urban-style SUVs. Size 235/55R18, 255/55R18, 235/60R17, 265/60R18, 245/60R17, etc. Featuring Porsche Cayenne, BMW X3/X5, Mercedes-Benz G/GL/GLK/ML Class, Audi Q5/Q7, etc. Contents 2013 No.3 Vol.50 2 PICK UP SOLUS KL21 4 HOT NEWS 1 The base of technology for world-class tires, Kumho Tires Central Lab 6 HOT NEWS 2 Kumho Tires Agencies Distinct Training Partners, Kumho Tires Training Center 8 Sports News Kumho Tires Ladies Open at the Weihai Point Hotel & Golf Resort 10 NEW PRODUCT The New Strategy to Win the Vietnamese Market, Solus KH17 New Product Presentation 11 NEWS President Dong Yoon Goh of Johannesburg Office, South Africa, Resigns Latin American & Caribbean Tire Expo European Rally Championship KT Dealer Movismart participated in a transportation event, Ecuador Kumho Tires tests F1 tires on actual cars Kumho Tires joins the Frankfurt Motor Show 14 NATURE & KUMHO TIRES The Five Layers of Delicate Buffer to Protect All Lives on Earth, Atmosphere 18 MOTORSPORTS Kumho Tires Wins China s Greatest Touring Race, CTCC Round 2 22 LINE UP CRUGEN Premium, SOLUS KL21 Tire Journal 2013 No.3 Publisher Chang-Kyu Kim(President & CEO, Kumho Tire Co.,INC.) Editor Soo-Min Kang Kumho Tires Co.,INC. KUMHO ASIANA Bldg., 115, Sinmunro 1-ga, Jongno-gu, Seoul, Korea K.P.O Box 1427 Tel +82-2-6303-8259 Fax +82-2-6303-8578 E-mail smkang@kumhotire.com Design Autobahn Design House Co.,Ltd(+82-2-522-9320) Kumho Tires Network www.kumhotire.com / www.kumhousa.com / www.kumhotire.ca www.kumhotyre.co.uk / www.kumhotire.de/ www.kumho.com.au / www.kumhotire.com.cn / www.marshaltire.com KUMHO TIRES 2013

Hot News 1 factory and the proving ground. Technical staff will stay there to take charge of operating the finished product performance evaluation facilities, manufacturing stereotypes, and monitoring the performance and quality of mass-produced products. The R&D Center for R&D and the specialized Gwangju Performance Center will build the two-track system and closely work together to combine forces for R&D. 4 KUMHO TIRES 2013 The base of technology for world-class tires Kumho Tires R&D Center 금호타이어_ 중앙연구소 전경(3).jpg The Control Tower of Global R&D Network 금호타이어_ 중앙연구소 기자간담회(1).jpg Kumho Tires, one of the leading tire makers in Korea, has recently opened the first R&D Center in the Metropolitan area in the industry and declared its challenge to regain its reputation for technological excellence through extended research and development. The R&D Center, built for the last five years in Jigok-dong Giheung-gu, Yongin, sits on a 34,873m 2 property with the gross floor area of 22,823m 2 that consists of the lab building and the testing building. About 600 local and international researchers will use the best-in-the-industry super computers, cutting-edge physical testing facilities, chemical testing and mechanical analysis facilities, and property research facilities to study and develop high valueadded products and core technologies to pioneer the market. With the R&D Center, Kumho Tires will pursue technological and human resources development until 2016 Kumho Tires opened its R&D Center in Yongin City last September 2 and initiated its operation with professional researchers and state-of-thearts systems. It will be the base of Kumho s new challenge to regain its reputation with extended research and development and Kumho Tires is attracting the attention of tire and automotive markets in Korea and abroad. for both quantitative and qualitative growth and develop and release market-leading products by 2018 to complete an organization with sustainable performance. Also, the R&D Center will play the major role as the control tower of Kumho s global R&D network connecting the North America Technology Center (KATC) in Akron, Cleveland, the European Technology Center (KETC) in Frankfurt, Germany, the Chinese Technology Center (KCTC) in Tianjin, China, and Gwangju Performance Center. The R&D Center in Korea will particularly be the main R&D Center for basic research and development and the existing Gwangju Center will be operated as the performance center for finished product evaluation and quality monitoring to complete the two-track system that can maximize its R&D capacity. Gwangju Performance Center will reinforce its function as the professional testing center with the production Kumho Tires R&D Center Global Competitiveness on the Next Level Kumho Tires strategy to reinforce the R&D network has been the outcome of strong determination of Chairman Sam Goo Park, Kumho-Asiana Group. As the R&D Center is geographically close to the Metropolitan Area, it will concentrate on new product development and core technological studies to achieve the level of competitiveness demanded by the global market. The R&D Center will be equipped with capable researchers and cutting-edge facilities to become the Mecca of tire technology that can keep up with the global market and stay ahead of competition. Yongin City, where the R&D Center is situated, is the rising Mecca of R&D for the automotive industry as the home of technical labs of Hyundai-Kia Motors, Renault-Samsung Motors, and Hyundai Mobis. It is also the home of the Racing Circuit at Everland Speedway and by far the largest cluster of automotive/automotive parts industries with the infrastructures of automotive, automotive parts, and after-market industries in Korea. Kumho Tires, the first tire maker to join this cluster, is expected to take advantage of the cluster with many capable researchers. Kumho Tires is currently concentrating on normalization of management, waiting for the end of workout. The Company insists that it is ready for the next stage as the consolidated net profit in 2010 turned to black figures and the operating profits almost doubled compared to the previous year. It released S-UHP (Super Ultra High Performance) Ecsta PS91 earlier this year to enter the tire market for super cars and made negotiations with the labor union without disputes to solidify mutual trust. Aiming to build a global management system, it will establish systems to support global offices and introduce more systemized management systems. Ensuring world-class technology is the best way to become a global tire maker, says President Chang-Gyu Kim, Kumho Tires. As we have renewed the R&D foundation with the opening of the R&D Center, we will heighten our competitiveness in various aspects by expanding international factories and OE supplies to motor makers abroad. Kumho Tires has shown advanced technological capacities by developing Korea s first tires for F1 racing cars, run flat tires, and tires for electric vehicles (EV) and promoting technological innovation by releasing new high-performance products, such as S-UHP Ecsta PS91, earlier this year. KUMHO TIRES 2013 5

Hot News 2 Kumho Tires Training Center Kumho Tires Agencies Distinct Training Partners Kumho Tires Training Center Last July 1, Kumho Tires opened Kumho Tires Training Center in Daejeon. Dreaming for mutual growth with its agencies, Kumho Tires established Korea s first specialized training center for tires to expedite the dream of successful business. Kumho Tires Training Center is equipped with spacious lecture rooms, practice rooms, and cutting-edge facilities, and offers various personalized training programs all year to improve sales capacities and increase revenues. One-stop Tire Training Center Kumho Tires Training Center, Korea s first specialized training center for tires, opened in Wa-dong Daedeok-gu, Daejeon last July 1. The old building for the Customer Service (CS) Center has been remodeled to house Kumho Tires Training Center. This place is Korea s first specialized training center for tires which Kumho Tires has established to train the distribution network to increase revenues through RE sales as it has realized the importance of a one-stop training facility for products, sales, and technology. This place is not just for training, but it is also a cultural space that invites the agency owners and sales representatives to communicate with one another. The first floor accommodates store operation experience hall, passenger vehicle practice center, and utility vehicle practice center for hands-on training, while the second floor has large/small lecture rooms and lounges for theoretical learning. Kumho Tires Training Center offers training programs dedicated to passionate service, consulting for equipment operation, professional training systems, technical expertise, and hands-on experience. The programs are based on the experience from providing and teaching technology to the automotive labs at Hyundai, Kia, Ssangyong, and even Mercedes-Benz and BMW. Systemized and Specialized Training Programs Kumho Tires Training Center s training programs have four steps and each step takes 3-4 days and the final step of overseas training program takes about 10 days. The new entry program involves the fundamentals of tires, how to operate equipment, safety rules, and management instructions. The processes are repeated until the trainees are familiarized with them in addition to the theoretical learning. After that, the expert programs on wheel/tire tuning and installing/removing tires for imported vehicles are offered to nurture tire experts. The theoretical lectures are also based on actual cases instead of dry manuals to make the classes easier to relate to and more interesting. The real-life stories told by successful store managers not only provide precious information, but also strongly motivate those who are new to the industry. We have established a specialized one-stop training center and prepared systemized programs for all vehicles, from passenger to utility, says Director Sang-Woo Han, Kumho Tires Training Center. We hope that both agency owners and their employees can become tire experts here. 6 KUMHO TIRES 2013 KUMHO TIRES 2013 7

X 0.5X X 1.6X Sports News Kumho Tires Ladies Open EI Worlds Top Female Golfers at One Spot Kumho Tires Ladies Open at the Weihai Point Hotel & Golf Resort Korea Ladies Professional Golfers Association (KLPGA) Tour finished its hot three-day competition at the Weihai Point Hotel & Golf Resort last 7th. The contestants included many renowned golfers from Korea, China, and Taiwan, including Dana Kim who has won the tour for the first time in four years since her debut. This tour particularly took place by the open seas and magnificent rocky cliffs surrounding the Weihai Point Hotel & Golf Resort and made a strong impression with the golfers fierce competition and the heavenly natural settings. The Global Competition Hosted by Kumho Tires While KLPGA Tour is gaining popularity, KLPGA Tour Kumho Tires Female Open took place at the Weihai Point Hotel & Golf Resort in Weihai, Shandong, China. Offering 0.1 billion KRW for the winner and 0.5 billion KRW altogether, this Tour invited a total of 125 golfers, including 60 top KLPGAqualified golfers and 60 top CLPGA-qualified (China Ladies Professional Golfers Association) golfers. Co-hosted by KLPGA and CLPGA, this Tour was sponsored by Kumho Tires to gain reputation in the global market and present the fun of a competition in a new setting for the golf fans in Korea. Kumho Tires has already been selected as the official tire supplier for Auto GP to supply tires exclusively for the leisure sports market. The Golf Course on Steep Cliffs and the Picturesque Ocean at a Glance Even in the heat of summer, KLPGA Tour Kumho Tires Female Open presented cooling scenes to the viewers surrounded by the dense forest and the clear ocean. Designed by David Dale, the senior designer of famous Golf Plan USA, the golf courses featured both heaven-like landscapes and hell-like courses. The 3-day competition was fascinating as no one could predict the winner while enjoying the beautiful natural setting. Consisted of an out-course and an incourse with a total of 18 holes for 72 pars on a 6,300 yard field, this golf course requires accuracy as the third hole on the out-course has a narrow fairway and the fifth hole (par 3) is located in between rocks with a narrow green and strategically located bunker. It offers a good chance for the professional golfers to challenge themselves here. As the golf course is facing the ocean, it is particularly important to adapt to the ocean winds. The 12th hole (par 4) of the incourse has the ocean across the fairway and the 17th hole (par 3) is located at the tip of a steep cliff to demand the guts to face the strong ocean winds. It is a very challenging place for the golfers but a great destination for the galleries and the tourists who enjoy golfing. The Unpredictable Competition by the Clear Ocean In-Ji Jun and Yoon-Kyung Huh made to the top together on the first day and Dana Kim and Li Jiajun of China recorded 6 under-par for the third place. The final results were quite different from the beginning of the competition. Dana Kim recorded a total of 8 under-par and 208 hits to grasp her first victory since the professional debut and win the reward. She showed her calm play despite the temperamental ocean winds of the Weihai Point Hotel & Golf Resort. During the interview, she shed tears while giving her thanks to her parents. The runner-ups were Hee-Kyung Bae, Ji-Hi Kim, and Jung-Min Lee. Hee-Kyung Bae was neck to neck with Dana Kim throughout the competition, but she lost her chance to go overtime with a bogie at the 17th hole. Both In Ji Jun and Yoon-Kyung Huh who led the competition on the first day ended up at the 10th place. Sung-Ah Lim who was on the second place on the second day was waiting for her chance to turn the table on the last day, but lost six hits to record 2 under-par, 214 hits for the 17th place. Hyo-Joo Kim who was the No. 1 candidate for the rookie king also ended up in the 17th place with 1 under-par, 215 hits. This competition, as unpredictable as the ocean winds, attracted the attention of many fans as it was the last match in the first half of 2013 and also made the Weihai Point Hotel & Golf Resort a popular destination. KUMHO TIRES 2013 9

New Product News The New Strategy to Win the Vietnamese Market Solus KH17 New Product Presentation Kumho Tires delivered last June the presentation for the new and improved Solus KH17 in Vietnam. The presentation took place at Intercontinental Asiana Saigon Hotel in Ho Chi Minh and Sofitel Plaza Hanoi on June 22 and 28, respectively, and Kumho Tires Vietnam hosted the events to announce the debut of a new product in the Vietnamese market and see where Kumho Tires stands for the second challenge in Vietnam. President Dong Yoon Goh of Johannesburg Office, South Africa, Resigns name of Lombard to establish Kumho Tire Retail Shop and Training Center to use them to train the Kumho Tires, gaining reputation as a global company, has presented the new and improved Solus KH17 with new compounds and side walls to adapt to the road conditions and climate of Vietnam. The presentation was attended by more than 200 people, including the government leaders, the partners of Kumho Tires, and the retailers and distributors, to attract the attention of tire distributors nationwide and the press by showing Kumho Tires amicable relationship with the Vietnamese government. The new product of Kumho Tires in the Vietnamese market is an important step to take Kumho Tires to the next level, announced President Hyun Ho Kim. This is the start of our long-term development plan and Kumho Tires will promote various marketing ized to fit the road conditions in Vietnam since 2013 and building an after-sale service system for customer satisfaction. It particularly stressed that it is promoting dynamic and distinct sales and marketing activities to earn the support of consumers. Kumho Tires has gained recognition in the Vietnamese market since 2008 when it built a factory in Vietnam. The factory allowed it to gradually increase market share in the Vietnamese market and lay the foundation for its second challenge as a global tire brand. The factory in Vietnam, as the first factory for radial tires with the latest facilities, is fulfilling its role as the export base for North America and Europe, along with the factory in China. It is particularly producing various products with enhanced quality to satisfy the needs of consumers in Vietnam s tire market. Kumho Tires and its future are made by the employees who always do their best at the production sites. There also are members who work for the future of Kumho Tires in sales and other divisions, and this issue introduces someone who has set an example for all members of Kumho Tires and will be retiring soon. It is President Dong Yoon Goh of Johannesburg Office, South Africa. President Goh joined Kumho Tires Overseas Business Dept. in 1976 and devoted himself to Kumho Tires for 38 years. He worked for several international offices until 1996 to explore the overseas markets and inaugurated as the president of Johannesburg Office to quickly develop the South African market from 10 million USD a year to 50 million USD. He made Kumho Tires the No. 1 imported brand in the South African market that had been dominated by the worldleading brands such as Goodyear, Continental, and Dunlop. Also, he developed an agent by the business partners in Africa about the products and after-sale services of Kumho Tires so Kumho Tires can grow in the South African market. He was highly trusted by many business partners in Africa with his warmth, kindness and friendliness to treat others as true friends regardless of race in the South African market where there is a strict racial discrimination policy called Apartheid. Even though the office was once invaded by armed thieves to steal the office appliances and computers, he firmly secured the market to be known as the legend in the overseas sales division. All employees and officers of Kumho Tires give the applause of respect to the path explored by President Dong Yoon Goh. activities for product development and PR. Aiming to be the major tire brand in Vietnam, Kumho Tires took the Also, he assured that Solus KH17 is customized for the local environment in Vietnam and will be the strategic milestone for Kumho Tires to dominate the local market in Vietnam. chance to remind the local market that it is studying, producing, and promoting products for local business in Vietnam and satisfying consumer needs with strategies focused not only on exporting European Rally Championship Latin American & Caribbean Tire Expo KT Dealer Movismart participated in a transportation event, Ecuador The visitors could meet the new product of Kumho Tires and learn but also on the local market. about Kumho Tires future strategies to win the Vietnamese mar- Kumho Tires also announced that the production at its factory in ket. Vietnam will be increased to 6 million a year to supply tires to the Kumho Tires announced that it will be the No. 1 tire brand in Viet- local market in Vietnam and to the markets around the world. nam within the next three years by recreating its image based on Finally, the presentation of Solus KH17 highlighted Kumho Tires strategic development for the local market in Vietnam. In order to passionate march into the Vietnamese market with the strategic do so, it has been producing and supplying new products custom- development of localized products to build a new brand image. The latest round of this Eurosport promoted rally championship was the Geko Ypres Rally in Belgium. Dutch Kumho driver Hermen Kobus competed in the rally and finished 5th overall against the top ERC competitors, a fantastic result for him and Kumho. The ERC introduced the same tyre rules as the WRC starting from this rally, so the tarmac tyres needed to be E marked, in order for Kobus to use Kumho tyres we had to obtain a waiver from the FIA to use our CO3 tyres with some extra grooves cut into them, until our new tarmac WRC tyres is ready. KT Dealer Euromaster participated in the Latin America & Caribbean Tire Expo in Panama. The Latin American & Caribbean Tire Expo took a place from July 24th to 27th in Panama. More than 3,000 tire dealers visited from over 80 countris, and more than 200 exhibitors participated in the event. Exhibiting companies included Kumho, Sailun, Triangl, Bridgestone, Maxxis, Michelin, GT Radial, CEAT, Apollo, TGI, Aeolus. KT dealer Euromaster opened the biggest booth in the central area and introduced new products of Kumho Tire, Especially PS91 was one of the best tire received much attention from visitors. The biggest annual event of FENACOTIP (National Federation of Cooperatives of Ecuador for Interprovincial Transportation) was held in Santa Elena, Ecuador on July 3rd, 4th and 5th. During the event, national transportation conference took a place and 14 unions participated in the conference. Kumho Tires attended the conference and introduced its new TBR product, 295/80 R225 KCA11 from Nanjing plant, and it was one of the most visited booth by visitors. This picture shows Maria Jose Arias(Movismart), Geomar Thick(FENACOTIP President), Abel Gmez(FENACOTIP Manager), Lorena Lopez(Movismart). 10 KUMHO TIRES 2013 KUMHO TIRES 2013 11

이어_ F1타이어 테스트(2).jpg News Kumho Tires tests F1 tires on actual cars Kumho Tires joins the Frankfurt Motor Show 금호타이어_ F1타이어 테스트(1).jpg 금호타이어_ Kumho F1타이어 Tires officially 테스트(2).jpg tested the F1 tires on actual cars at the Circuit de Catalunya in Spain for three days from September 16. The purpose of this test was to validate the technology for future business with F1 and to actually test the technology accumulated through motor sports since the 1990s for F1. Kumho Tires is the first company to actually test the F1 tires on actual cars in Korea s automotive technology industry. The Circuit de Catalunya often holds F1 racing and F1-related tests. It is a 4.6 km-long circuit located in Montmelo to the north of Barcelona. It is known as the best test site that evenly combines various high-speed corners, mid-speed corners, long straight paths, uphill and downhill. A number of veteran drivers participated in this test, including Narain Karthikeyan, a former F1 driver who is currently a member of Super Nova which is the winning team of the 2012 Auto Grand Prix ( Auto GP ) World Series, and Kevin Giovesi who competed in the Auto GP and is active in GP2. Sung Hak Moon who is active in Europe also participated as the test driver. Moon became the first Korean to drive F2 (Formula 2) in 2011 and is challenging to make it into F1 for the first time in Korea with Kumho Tires. He is scheduled to participate in the Auto GP, which is the gateway to F1, in 2014 and he took this change to test the performance of tires and his skills on the road. He is also the envoy for the 2013 F1 Korea Grand Prix and known as the Korean racer closest to F1. The tires with the same specifications as the ones for F1 will be supplied to Auto GP from 2014 and will be constantly tested to be supplied as the official F1 tires in the future. Tires are considered as an important element that can determine whether you win or lose in the F1. There are only four companies in the world that have the advanced scientific technology to manufacture F1 tires at the ultimate level of technology. These companies are Michelin, Pirelli, Bridgestone, and Goodyear. Kumho Tires released the first testing tires for F1 in Korea in 2007 and has constantly done R&D. This official test will take it closer to the F1. It has accumulated enough knowhow and data by participating in various global motor sports, including Auto GP, Masters F3, VLN Germany (Nurburgring Endurance Race). Kumho Tires is also the official tires for a number of motor sports events. It will be the exclusive sponsor of Auto GP, currently the step right before F1 and the world s top formula event, for three consecutive years from 2012 through 2014. It is also the official tire supplier of European Masters F3, Australian F3, and Chinese CTCC. We believe that our technology has reached the level for us to compete with the global top tire brands in the F1 tire market, said Bong Young Son, the Director of Research. As we are closest to F1 in Korea in terms of technology, we will constantly test our products on real cars and make our best efforts to improve the brand power and achieve our long-cherished goal to make into the F1 industry. Kumho Tires participated in the 2013 Frankfurt Motor Show held in Frankfurt, Germany from September 12 through 22. During this motor show, Kumho Tires presented 22 products of 14 series, including Ultra High Performance (UHP) tires and eco-friendly tires. It particularly captured the eyes of consumers by exhibiting ecowing ES01, the eco-friendly tire that acquired the excellence grade from the EU Tire Labeling, for the European market that is highly interested in eco-friendly products. Ecowing ES01 has been recognized for its performance and design excellence by winning the Product-Design Prize at the 2013 Red-dot Design Awards. It also released ECSTA PS91, the S-UHP (Super- Ultra High Performance) first released last May for super cars. ECSTA PS91 maximizes the performance of high-powered super cars, such as Porche and Lamborghini, and is characterized by improved grounding and durability. Other interesting sights for the spectators were presented by various tires for the winter, tires for SUVs, and conceptual tires for the future. The booth presented various events. Gifts were given to the winners who participated in the special event zone co-sponsored with ADAC (Allgemeiner Deutscher Automobil-Club), one of the largest motor sports clubs in Germany. Also, event winners and the visitors at Kumho Tire Booth received instant portrait images created by a professional artist on ipad as complimentary gifts. Kumho Tires has participated in the Frankfurt Motor Show for three consecutive years since 2009 and we are knocking on the door to the European market with advanced technology, said Young Nam Byun, the Director of European Sales Division. We are planning to continue promoting product development and marketing activities to capture the European consumers. The Frankfurt Motor Show is celebrating its 65th anniversary since it was first held in 1897 and one of the world s top 3 motor shows with tradition and authority. This year, about 1,000 automotive/parts industries participated in the show to release World Premier products. 12 KUMHO TIRES 2013 KUMHO TIRES 2013 13

Nature and Kumho Tires The Five Layers of Delicate Buffer to Protect All Lives on Earth Atmosphere As we often say the ambient air, we usually do not take into account the fact we are surrounded by the atmosphere. In fact, the atmosphere provided the critical cause of the birth of life on Earth and no activity of life is possible without the atmosphere even today. Each of the five layers of the atmosphere has its own role to delicately protect the Earth. The Five Layers of Atmosphere Surrounding the Earth You might think of the oxygen we breathe in when you think of the atmosphere, but the oxygen is only an extreme part of the atmosphere. If there was no atmosphere, we could not have even imagined living on the ground due to the endless rain of meteors and harmful radioactive rays and all of the lives would have stayed in the ocean. Also, the radio waves can travel a far way even without the satellite because the atmosphere reflects them. The atmosphere is largely divided into five layers. The lowest layer is the troposphere and most of the meteorological phenomena on Earth occur in this layer. The troposphere takes about 80% of the entire mass of the atmosphere, but its thickness is up to 17 km above sea level in the thickest part near the Equator and only about 10 km near the Polar Regions. Troposphere originates from tropos, which means be mixed in Greek. It is where nitrogen and oxygen are mixed with various gases and moisture and what we usually refer to as the air. Heated air rises to form the clouds and shed rain. Beneath them, the winds agitate the surface of Earth to cause various meteorological phenomena. Right above the troposphere is the stratosphere which stretches to about 50 km above sea level. The Ozone layer, which is closely related to climate changes, exists in this layer and blocks most of the harmful UV rays radiated from the Sun. Above the stratosphere to around 85 km above sea level is the mesosphere. The reason why the surface of Earth is not covered with craters like the Moon is because most of the meteors are burnt away in this layer. 14 KUMHO TIRES 2013 KUMHO TIRES 2013 15

The thermosphere on top of the mesosphere stretching up to 690 km above sea level is also called the ionosphere because it is where the ions are made. Because this layer is thin and generally considered as outside the atmosphere, the international space station and a number of satellites are circling around the Earth in this layer. The elements exposed to the cosmic rays such as the solar rays in the thermosphere ionize to create the ions. Wireless communication was possible on the ocean when there were no satellite because the ions reflected the radio waves. The aura that generates plasma discharge in the ions also occurs in the thermosphere. The outermost layer above the thermosphere is the exosphere. It refers to the range from 1000 km to 10,000 km above sea level. The altitude varies by more than 10 times because the exosphere works as the cushion to absorb the pressure of solar winds. The exosphere is the last layer of the atmosphere and it is the space between the planets outside this layer. the Ozone. As the Ozone increased, it formed a layer in the atmosphere. The Ozone layer absorbs most of the UV-B that is harmful for the living organisms. This is how the living organisms came up to the land from the ocean. UV-B interferes with the growth of animals and plants to damage the ecosystem and increase the occurrence of skin cancer and cataract. The Ozone layer that absorbs the UV rays is still protecting the ecosystem, but it was discovered in the 1980s that it is thinning due to the chemical materials we use, such as the Freon gas, to raise serious environmental issues. Oxygen and Ozone Made by Living Organisms to Protect Living Organisms At the beginning of the time, there was no oxygen on Earth. Scientists say that the atmosphere around the Earth right after its birth 4.6 billion years ago was mostly taken by hot and pressurized steam along with carbon dioxide and nitrogen. It took millions of years for the surface of Earth to cool down to its temperature today. The steam formed rain to wet the surface and make the ocean to leave only carbon dioxide and nitrogen in the atmosphere. As carbon dioxide melted in the ocean and a portion of it combined with calcium ions to form limestone and deposit under the ocean, less carbon dioxide remained in the atmosphere to leave only nitrogen. Time passed and blue-green algae (cyanobacteria) emerged in the ocean to use the solar energy for photosynthesis 2.7 billion years ago. Carbon dioxide and water were converted into organic matters and oxygen to reduce carbon dioxide in the atmosphere and increase oxygen. Then, the living organisms evolved and came up to the land to increase photosynthesis by various plants to further increase the oxygen. The atmosphere took billions of years to take its current form of nitrogen and oxygen. Even today, plankton, the micro organisms in the ocean, supplies more than 60% of oxygen, so it is not an exaggeration to say that the environment today was beginning to be created with the creation of life. The Ozone is the gas made up of three oxygen atoms and it mostly exists in the stratosphere about 10-50 km from the surface of Earth, especially between 20 and 25 km above sea level. Ever since the bacteria emerged to emit oxygen through photosynthesis about 2.7 billion years ago, the oxygen in the atmosphere increased and a portion of it chemically reacted with the UV rays from the Sun to create Time to Protect the Atmosphere The 3rd Conference of the Parties held in Kyoto, Japan in 1997 adopted the Kyoto Protocol to the United Nations Framework Convention on Climate Change and it was validated from 2005. The Kyoto Protocol designates the target reduction of six greenhouse gases that contribute to the greenhouse effect and it aims to reduce the overall greenhouse gas emission from advanced countries by at least 5.2% compared to 1990 between 2008 and 2012. Korea ratified this treaty in 2002 and is obliged to reduce greenhouse gas emission. Kumho Tires has already realized the importance of environmental protection and volunteered to engage in it. Since the Korean government initiated the greenhouse gas reduction project in 2007, it replaced the production facilities to reduce the use of fuel and substituted with pure fuel to acquire official certification for reducing 13,339 tons of greenhouse gas. Kumho Tires became the first tire maker to participate in greenhouse gas reduction project in December 2007, and has reduced 13,339 tons of greenhouse gas by improving valcanizer and installing fuel economizer to reduce fuel consumption and substituting fuel with pure LNG with low emission factor. The amount of greenhouse gas reduced by Kumho Tires during the last four years equals the amount of carbon dioxide absorbed by about 290 20-year-old nut pines for a year. Kumho Tires has been operating eco-friendly policies since the 1990s. It has acquired ISO 14001 and Eco-mark certifications for the first time in the industry in Korea. Kumho Tires currently has Eco-marks for 11 products and a total of 18 standardized products, including Ecowing-S, the fuel-efficient, eco-friendly tire with energy efficiency level 1 (based on rotational resistance), for the first time in the industry. Atmosphere Kumho Tires has already realized the importance of environmental protection and volunteered to engage in it. Since the Korean government initiated the greenhouse gas reduction project in 2007, it replaced the production facilities to reduce the use of fuel and substituted with pure fuel to acquire official certification for reducing 13,339 tons of greenhouse gas. 16 KUMHO TIRES 2013 KUMHO TIRES 2013 17

Motorsports Kumho Tires Wins China s Greatest Touring Race China Touring Car Championship Round 2 18 KUMHO TIRES 2013 China Touring Car Championship (CTCC), which is by far China s greatest race sponsored by the Federation of Automobile Sports of PRC (FASC) and Federation International de l Automobile (FIA). In 2013, Kumho Tires announced its participation in this race. The 2013 CTCC Round 2 that took place at Shanghai International Circuit on May 26 attracted about 10,000 spectators with a breathtaking race. KUMHO TIRES 2013 19

Kumho Tires Challenges CTCC Until a while ago, the center of Asia s motor sports was Japan with advanced automotive industry and the Middle East, the major market of high-performance racing cars. However, things have changed significantly as China has emerged as the world s greatest automotive market that goes neck and neck with the U.S. The number of motor sports fans are increasing at a fast rate in China as there are many youngsters who love cars. CTCC, which is China s greatest motor race, is visited by more than 10,000 motor sports fans each time and aired exclusively by CCTV, a public TV station. Began in 2004, CTCC has been sponsored ECSTA S700 for CTCC The Dramatically Breathtaking Race Info. by the Federation of Automobile Sports of PRC (FASC) and Fed- Alight shower wetted the track before the CTCC Round 2. The As soon as the gun was shot, the small racing cars with 1,600cc eration International de l Automobile (FIA). The race is generally held for three classes, 2,000cc, 1,600cc, and 1,600cc turbo, but teams were careful about their choice of tires. As they could not predict whether it would rain again or would be sunny, choosing engines spurted out as bullets. The spectators yelled out as the racers engaged in a fierce competition around the corners of Shanghai International Circuit? 2,000ccvehicles were not competed this year. Kumho Tires started business in China in 1994, and has gained reputation in China s motor sports industry by sponsoring official tires for Formula Renault since the mid-2000s and participating the China Rally Championships and the Asia Pacific Rally Championships in 2011. It has been selected as the official tire supplier for the China Formula Grand Prix in 2012 and for CCTC for three years from 2013 through 2015 to sign an agreement to supply and sponsor tires the right tires was like gambling. The tires used for CTCC are Kumho Tires ECSTA S700 that passed strictly competitive tests. ECSTA S700 is the racing tire designed for stability and grip and the pride of Kumho Tires that is upgrading performance every year. It was newly introduced for this season, but all teams on Shanghai International Circuit showed deep trust in ECSTA S700. They said it performed excellently on dry tracks when they used it for Round 1. The racers, officials, and spectators were eager to see how it performed in Shanghai International Circuit. David Choo of Beijing Hyundai was at the lead, but the runner-ups, including Guangzhou Toyota, were right at his tail. However, David Choo was pushed out of the track during the competition and fell behind to the 10th place. The Guangzhou Toyota Team on the second place cheered with joy. There was a miracle. David Choo of Beijing Hyundai started his chase and came right behind Guangzhou Toyota. The spectators cheered for an exciting drama. David Choo finally broke down the defense before the final lap to come back to the lead The 2013 CTCC Round 2 took place at Shanghai International Circuit, the greatest racing circuit in China. The circuit is 5.451 km in length with 16 corners and the racers are required to go 27 laps. In other words, they drive about 150 km in distance. Shanghai International Circuit was designed by Hermann Tilke, the German architect who has designed Bahrain International Circuit and Sepang International Circuit in Malaysia, and took 18 months to be built on a marsh with 0.45 billion USD. The track is in the form of 上 which is the first letter for 上 海 (Shanghai) and the long straight track is designed to be passed at 300 km/h. for China s motor sports industry. Round 2 as the track was slightly wet. for a dramatic victory. 20 KUMHO TIRES 2013 KUMHO TIRES 2013 21

Attractive Point Minimizing noise, comfort and safe driving performance Technology of grip reinforcement for maximizing braking performance Major Performance Features Ride Comfort Quiet Driving Handling Braking on wet roads Hish-speed Stability Mileage A. Reinforced breaking performance on wed roads and snowy roads Semi-Knurling and the 3-dimensional blocks Attractive Point - 3~5% improvement in fuel consumption in proportion of Low Rolling Resistance (LRR) - 10% reduction in fine dust particle emissions when tire is rolling - Calm and quiet for unparalleled comfortable driving - Uncompromising performance through improved LRR Tread Design Wet performance 4 Channel Main grooves for reduced hydroplaning Embossing Shape within the grooves act as stone ejector Handling stability Center Solid Rib Block to increase handling stability Traction performance Bite edge, Sipes & Lateral Groove to increase snow traction/performance Noise performance Optimized Variable Pitch technique applied to minimize noise during travel Ride Comfort Handling Relative Comparison for Similar Grade Noise Existing product Mileage Braking B. Minimizing for shock and vibration Block supports reinforce for high speed stability Attractive Point - 3~5% improvement in fuel consumption in proportion of Low Rolling Resistance (LRR) - 10% reduction in fine dust particle emissions when tire is rolling - Calm and quiet for unparalleled comfortable driving - Uncompromising Existing performance product through improved LRR Tread Design C. Reinforced driving performance on wed roads Adoption of the 4-channel straight-line Wet performance grooves for drainage enhances the draining performance on the wet road 4 Channel Main grooves for reduced hydroplaning Embossing Shape within the grooves act as stone ejector Handling stability Center Solid Rib Block to increase handling stability Traction performance Bite edge, Sipes & Lateral Groove to increase snow traction/performance Technology Lower R/R Tread Compound - HDS (High Dispersible Silica) compound used to strengthen the rubber and even wear - Coupling Agents Maximizes silica coupling effect for low rolling resistance Tread Volume optimization through (3D FEM) Lower R/R Mold Profile -Minimizing the distortion when tire rolls out space tread & side Profile designed for lower RR. -Efficient tread profile considering wet traction and rolling resistance Special Steel Belt Layer for better R/R - Belt Layer optimized for lower R/R - High tensile belt layer strengthening the tire High Intensity Body Ply - Body Ply efficiently improves R/R during heat generation Super High Tensile Bead Wire Bundle - High tensile bead wire improves the tire s load range during travel 22 KUMHO TIRES 2013 Noise performance Optimized Variable Pitch technique applied to minimize noise during travel Rolling Resistance Wet performance - Hydroplaning simulation through super computer simulation. KUMHO TIRES 2013 23