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STRONG SALES GROWTH IN ALL REGIONS. ACTIONS ACCELERATED TO IMPROVE FINANCIAL PERFORMANCE INTERIM REPORT JANUARY – MARCH 2025 PAOLO POMPEI, CEO NIKO HAAVISTO, CFO MAY 6, 2025
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AGENDA 2 1 2 3 4 Financial performance in Q1 Business units CEO reflections Tariffs and 2025 guidance
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Q1 FINANCIAL PERFORMANCE 3
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HIGHLIGHTS OF Q1/2025 4 • Strong sales growth continued, we outperformed the market in all regions • Romanian factory proceeding as planned, tire deliveries started in March • Heavy Tyres performed well in a weak market • Actions accelerated to improve financial performance • Tariffs causing disturbances in North America, local-to-local strategy mitigating the impacts
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TIRE MARKET DEVELOPMENT IN Q1/2025 PC & LT TIRES TRUCK TIRES • Europe RT +1% AGRI TIRES • Europe RT -7% • Europe OE –20% • Europe RT +5% • North America RT 0% 5 PC/LT replacement tire market showing modest growth, weakness in heavy tire market continued Market data based on sell-in data provided by tiremaker associations and Nokian Tyres’ own estimates of sales by tire manufacturers that do not belong to any association Nokian Tyres outperforming the market
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STRONG SALES GROWTH IN Q1, PROFITABILITY DECLINED DUE TO HIGHER COST • Net sales EUR 269.5 million (236.6), +14.2% with comparable currencies • Positive development in all business units • Market position improved in all regions • Segments EBITDA EUR 12.5 million (12.5) • 4.6% (5.3%) of net sales • Segments operating profit EUR -18.5 million (-15.1) • -6.9% (-6.4%) of net sales • Decline due to higher raw material and SG&A costs • Price increases implemented in Q1 which are intended to offset increased raw material cost, will be reflected in our results from Q2 onwards 6
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NET SALES GREW IN ALL REGIONS IN THE FIRST QUARTER 7 Q1 2024 Q1 2025 126,9 49,2 60,0133,7 66,3 68,8 0 20 40 60 80 100 120 140 Nordics Other Europe Americas +5.9% +34.4% +15.0% NET SALES BY GEOGRAPHICAL AREA, EUR million
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EUR million 1–3/2025 1–3/2024 2024 Net sales 269.5 236.6 1,289.8 Segments EBITDA 12.5 12.5 185.2 Segments EBITDA, % 4.6% 5.3% 14.4% Segments operating profit -18.5 -15.1 71.4 Segments operating profit, % -6.9% -6.4% 5.5% Segments ROCE, % (rolling 12 months) 3.6% 4.0% 3.9% Equity ratio, % 50.7% 57.6% 52.5% Gearing, % 65.9% 29.7% 48.2% Interest-bearing net debt 802.1 395.1 613.1 Capital expenditure 52.0 69.7 350.1 Cash flow from operating activities -121.8 -87.3 77.4 KEY FIGURES 8 In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS segments figures, which exclude the ramp-up of the US and Romanian factories and other possible items that are not indicative of the Group’s underlying business performance. Investment phase approaching its end
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SIGNIFICANT INVESTMENTS IN 2023 – 2025 TO BUILD OUR FUTURE PLATFORM 0 100 200 300 400 2021 2022 2023 2024 2025E 9 EstimateInvestments Depreciation Investment phase approaching its end • Net investments in 2025 estimated to be EUR 200 million • Total investments in 2023–2025 approx. EUR 800 million • Returning to average capex of approx. EUR 120 million • Romanian state aid approx. EUR 100 million to be received from 2025 onwards, lowering net investments EUR million
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BUSINESS UNITS 10
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Q1: PASSENGER CAR TYRES EUR million 1–3/2025 1–3/2024 2024 Net sales 174.1 143.1 779.9 Net sales change in comparable currencies, % 22.2% 8.7% 20.2% Segment operating profit -6.2 -2.8 52.2 Segment operating profit, % -3.6% -2.0% 6.7% 11 Higher sales, profitability decreased • Net sales increased due to higher sales volumes driven by increased product availability • ASP with comparable currencies at previous year’s level • Share of premium and >18” tires increased • Profitability decreased due to higher raw material and SG&A costs • Finished goods inventories on a lower level
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NET SALES, EUR million Q1: PASSENGER CAR TYRES BRIDGE Volume impact of EUR +10 million on segment operating profit 31 1 0 140 145 150 155 160 165 170 175 Price/Mix 143 175 174 1-3/20251-3/2024 Sales Volume Currency -1 Net Sales excl FX effect +22% +21,7% +0,5% -0,5% SEGMENT OPERATING PROFIT, EUR million 12
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PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Q1 Q2 Q3 Q4 Q1 9,7% 21,9% 35,4% 28,6% 21,7% Q1 Q2 Q3 Q4 Q1 -1,0% 2,4% -10,5% -7,9% 0,5% Q1 Q2 Q3 Q4 Q1 -1,3% -0,6% -1,1% -0,4% -0,5% Sales Volumes Price / Mix Currency 2024 2025 2024 2025 2024 2025 13
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Q1: HEAVY TYRES EUR million 1–3/2025 1–3/2024 2024 Net sales 55.8 55.1 235.1 Net sales change in comparable currencies, % 1.3% -18.5% -8.0% Segment operating profit 7.3 6.3 30.0 Segment operating profit, % 13.0% 11.5% 12.8% 14 Solid performance in a weak market • Net sales increased in all regions driven by aftermarket sales • Profitability improved mainly due to favorable channel mix • Finished goods inventories remained stable
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Q1: VIANOR 15 Positive sales development • Net sales with comparable currencies increased by 5.7% • The first quarter is seasonally low in Vianor, therefore negative in profitability • Finished goods inventories remained stable EUR million 1–3/2025 1–3/2024 2024 Net sales 58.8 55.9 354.9 Net sales change in comparable currencies, % 5.7% 2.3% 3.6% Segment operating profit -15.4 -15.9 -3.8 Segment operating profit, % -26.2% -28.5% -1.1%
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CEO REFLECTIONS 16
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KEY MESSAGES 17 • Strong foundations for industry leading growth and profitability improvement • Investment phase completed by the end of 2025, moving to growth phase • Actions to improve financial performance accelerated
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STRONG GROWTH PROSPECTS DRIVEN BY SAFEST PRODUCTS 18 Long-term heritage of safest products for demanding weather conditions Addressable market Global tire market ~250B€ Nokian Tyres
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PRODUCT STRONG FOUNDATIONS TO BUILD ON 19 • Wide offering in winter and all-season tires • Safe, sustainable, and high- performing products BRAND • Premium tire segment leader in Nordics • Strong brand recognition in winter tires in North America and rest of Europe DISTRIBUTION • Market-leading distribution network in Nordics via Vianor • Products sold totally in 46 countries MANUFACTURING • Local-to-local production in core geographies • Brand new, well-invested facilities HEAVY TIRES • Highly profitable business with strong position in forestry and growing in agricultural segment
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INVESTMENT PHASE TO BE SUCCESSFULLY COMPLETED BY YEAR END, NEXT STEP TO FOCUS ON FINANCIAL PERFORMANCE 20 NOKIAN TYRES NET FINANCIALS, EUR million 2020 2021 2022 2023 2024 190 325 221 65 71 Segment Operating Profit Operating Profit • Response to structural disruption successfully managed: Exit from Russian markets, expansion of Nokia production capacity, support from manufacturing partners, and cost reduction measures • Dayton production ramp-up completed: Optimization of the factory to support market demand completed in Q1 2025 • Oradea production ramp-up ongoing: Tire deliveries started in March 2025
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21 OPPORTUNITIES TO FURTHER STRENGTHEN THE BUSINESS • North American and Central European commercial positioning • Manufacturing, procurement, and SG&A cost competitiveness • Balance sheet strength
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22 ACTIONS TO IMPROVE FINANCIAL PERFORMANCE ACCELERATED COMMERCIAL • North America: Accelerate commercial efforts to gain premium market share • North America: Strengthen partnership network • Central Europe: Expand our sales network • Central Europe: Consistent price realization with premium branding MANUFACTURING • Dayton production optimization • Fixed cost reduction through scaling • Efficiency improvements PROCUREMENT • Raw material procurement • Indirect spend optimization • Finalize production ramp-up
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STRONG FOCUS ON DELIVERING RESULTS 23 New operating model implemented with stronger P&L and KPI ownership and accountability Dedicated workstream owners, systematic follow-ups, and reporting practices
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MOVING TO NEXT PHASE IS REFLECTED IN OUR CAPITAL ALLOCATION PRIORITIES • EUR 728 million of capex spend • EUR 472 million increase in net debt • EUR 224 million of dividends • Substantial improvement to operating cash flow • EUR ~120 million capex per annum • 1–2x net debt to EBITDA HISTORICAL VIEW: ACTUAL CAPITAL ALLOCATION 2022–2024 PRIORITIES TOWARDS 2027: CREATING BASIS FOR STRONG INVESTOR RETURNS24
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WE ARE WELL POSITIONED TO OUTSTANDING VALUE CREATION 25 GROWTH: Above market growth supported by unique value proposition with safe, sustainable, and high-performing products in demanding weather conditions PROFITABILITY: Targeting strong profitability improvement through commercial and manufacturing excellence, and procurement efficiencies CAPITAL ALLOCATION: Modern and well invested asset base enabling strong cash generation and investor returns
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TARIFFS AND GUIDANCE 26
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TIRE INDUSTRY ASSUMPTIONS FOR 2025 PASSENGER CAR & LIGHT TRUCK TIRES HEAVY TIRES OE demand declining in H1, market expected to continue challenging in H2 RT demand stable RT -2% to 2% Growth in Central Europe, Nordics stable, volatility in North America 27 Market data based on sell-in data provided by tiremaker associations and Nokian Tyres’ own estimates of sales by tire manufacturers that do not belong to any association
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TARIFFS CAUSING DISTURBANCES IN THE NORTH AMERICAN MARKET 28 • Nokian Tyres in North America: • >20% of the Group net sales • Approx. 85% of the US volume produced locally in Dayton • Canada supplied from the US and Europe; US imports affected by Canadian counter tariffs • Direct impacts: increased sourcing costs and inflow of low-cost tire imports to the US ahead of tariffs. Over 60% of tires in the US are imported, potentially creating opportunities for local manufacturers • Indirect impacts: slowing general economic activity, high market uncertainty, record-low consumer sentiment and possible currency fluctuations • Close monitoring and mitigation of the impacts by re- allocating selected product lines to European factories, adjusting inventory levels, reassessing raw material supply and adjusting pricing
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GUIDANCE FOR 2025 (unchanged) In 2025, Nokian Tyres’ net sales are expected to grow and segments operating profit as a percentage of net sales to improve compared to the previous year. Assumptions Tire demand in Nokian Tyres’ markets is expected to remain at the previous year’s level in 2025. Development of global economy as well as geopolitical, trade and tariff uncertainties may cause volatility to the company’s business environment. Nokian Tyres’ sales growth is based on increasing capacity in the Romanian and US factories as well as good availability of finished goods inventories. 29
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APPENDIX 30
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1–3/2025 • Net sales EUR 269.5 million (236.6), 13.9% • Segments operating profit EUR -18.5 million (-15.1) GROUP SEGMENTS OPERATING PROFIT PER QUARTER 2021– 2025 APPENDIX 31 -100 0 100 200 300 400 1-3 1-6 1-9 1-12 CUMULATIVE SEGMENTS OPERATING PROFIT PER REVIEW PERIOD -20 0 20 40 60 80 100 Q 1 Q 2 Q 3 Q 4 SEGMENTS OPERATING PROFIT PER QARTER 2021 2022 2023 2024 2025
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• EUR 300 million long-term bilateral sustainability-linked credit facilities originally due in 2026 extended to be due in 2027 • EUR 100 million long-term bilateral sustainability-linked credit facility originally due in 2027 extended to be due in 2028 • Committed credit limits and EUR 500 million commercial paper program in place for NWC financing • Additional debt funding can be sourced from banks and/or debt capital markets to balance financing channels and to extend maturities 32 DEBT PORTFOLIO AS OF MARCH 31, 2025 APPENDIX DEBT COMPOSITION AS OF MAR 31, 2025 Loans from financial institutions and pension loans Debt Market I Commercial Papers, Bonds Leases | IFRS 16 DEBT EUR 887 million 0 50 100 150 200 250 300 350 400 450 500 2025 2026 2027 2028 2029 2030- EUR million MATURITY STRUCTURES AS OF MAR 31, 2025 Committed Credit Facilities | Undrawn (Major) Leases | IFRS 16 Debt Market | Commercial Papers, Bonds Loans
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NET DEBT AND DEBT MATURITIES 33 Available liquidity, EUR million Q1/2025 Q1/2024 Cash 85 283 Committed undrawn credit facilities 304 330 Total 389 613 APPENDIX 558 409 198 136 131 134 0 100 200 300 400 500 600 700 800 900 1000 0 100 200 300 400 500 600 700 800 900 1000 Debt 887 Cash 85 Net Debt 802 Debt 678 Cash 283 Net Debt 395 EUR million Net Debt Q1/2025 Q1/2024 12 324 124 27 6999 99 36 36 20 13 7 20 100 200 0 50 100 150 200 250 300 350 400 450 500 0 50 100 150 200 250 300 350 400 450 500 2025 Share of Total 15% 2026 5% 2027 39% 2028 27% 2029 4% 2030- 10% EUR million Debt Maturities Q1/2025 Committed Credit Facilities | Undrawn (Major) Leases | IFRS 16 Debt Market | Commercial Papers, Bonds Loans
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DISCLAIMER Statements in this presentation, which are not historical facts, such as expectations, anticipations, beliefs and estimates, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Nokian Tyres assumes no responsibility to update any of the forward-looking statements contained herein. No representation or warranty, express or implied, is made or given by or on behalf of Nokian Tyres or its employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation.