Slides
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S T R O N G O P E R A T I N G P R O F I T I M P R O V E M E N T I N Q 3 , D R I V E N B Y E N H A N C E D P R I C I N G I N P A S S E N G E R C A R T I R E S . A C T I O N S O N G O I N G T O F U R T H E R S T R E N G T H E N F I N A N C I A L P E R F O R M A N C E I N T E R I M R E P O R T J A N U A R Y– S E P T E M B E R 2 0 2 5 P A O L O P O M P E I , P R E S I D E N T A N D C E O J A R I H U U H T A N E N , I N T E R I M C F O O C T O B E R 2 8 , 2 0 2 5
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A G E N D A 2 1 2 3 Quarterly highlights Financial performance Business units 4 Assumptions and guidance
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Q U A R T E R L Y H I G H L I G H T S 3
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H I G H L I G H T S O F Q 3 / 2 0 2 5 4 • Double-digit net sales growth continued. Sales grew in all regions. • Operating profit improved significantly, driven by enhanced pricing in passenger car tires. • Actions ongoing to further improve financial performance. • Ramp-up of operations in Romania progressing as planned. Operations running 24/7. • Expanded product offering and brand partnerships strengthening our position in key markets. • Favorable tariff developments in North America.
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R A M P- U P A T T H E R O M A N I A N F A C T O R Y P R O G R E S S I N G A S P L A N N E D , S T R E N G T H E N I N G O U R P O S I T I O N I N E U R O P E Deliveries to customers started in Q2 2025 Now operating in 4 shifts, enabling 24/7 production ~1 million tires to be delivered in 2025 2 new product lines launched for Central and Southern European markets 5 The world’s first full -scale zero -CO2-emissions tire factory
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6 P O W E R P R O O F 2 C O M P L E T E S O U R P R E M I U M O F F E R I N G F O R C E N T R A L A N D S O U T H E R N E U R O P E A N M A R K E T S • 2nd new tire range in the market manufactured in Romania • Premium ultra-high-performance, tested by TÜV SÜD • Durable structure for long-lasting protection against road wear • Optimized tread design for reduced road noise and enhanced driving comfort • Fully compatible with EVs • Wide size selection LAUNCHED IN OCTOBER AT HAKKA RING IN SPAIN Gathering 160 guests from Central and Southern Europe, including strong representation from media, bloggers and TV N O K I A N T Y R E S P O W E R P R O O F 2 U H P S U M M E R T I R E 6
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7 R E C O G N I Z E D E X P E R T I S E I N W I N T E R A N D A D V A N C E D T I R E T E C H N O L O G I E S S I L V E R F O R N O K I A N T Y R E S I N T U I T U 2 . 0 S M A R T T I R E T E C H N O L O G Y T E S T S U C C E S S F O R O U R F L A G S H I P W I N T E R T I R E S I N 2 0 2 5 Nokian Tyres Hakkapeliitta® 10 studded tire in the #1 place • Tekniikan Maailma • Aftonbladet • Dagbladet • Motor • Vi Bilägare Nokian Tyres Hakkapeliitta® R5 non-studded tire in podium places • Tekniikan Maailma • Dagbladet • Aftonbladet • Tyre Reviews
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S T R E N G T H E N I N G O U R B R A N D T H R O U G H S P O R T S P A R T N E R S H I P 8 • Increasing global visibility through the world’s largest annual winter sports event • Connecting the Nokian Tyres brand with millions of hockey fans • Creating premium experiences for customers and consumers • Sharing a drive for performance, teamwork, and mastering the toughest conditions 8 Official sponsor of the 2026–27 IIHF Ice Hockey World Championships
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F I N A N C I A L P E R F O R M A N C E 9
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T I R E M A R K E T D E V E L O P M E N T I N 1– 9 / 2 0 2 5 PC & LT TIRES TRUCK TIRES • Europe RT 0% AGRI TIRES • Europe RT -5% • Europe OE -15% • Europe RT +2% • North America RT -1% 10 PC/LT replacement tire market showing modest growth in Europe, 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
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N E T S A L E S A N D O P E R A T I N G P R O F I T I M P R O V E D I N Q 3 11 • Net sales EUR 344.1 million (313.6), +10.8% with comparable currencies • Sales grew in all regions • North America significantly outperformed the market • Segments EBITDA EUR 65.4 million (58.8) • 19.0% (18.8%) of net sales • Segments operating profit EUR 32.4 million (30.4) • 9.4% (9.7%) of net sales • Driven by higher passenger car tire prices • Non-IFRS exclusions in the comparison period included EUR -13.3 million mainly related to inventory write-downs of contract manufacturing products, impacting comparability • Operating profit EUR 21.8 million (4.1) • 6.3% (1.3%) of net sales
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N E T S A L E S C O N T I N U E D T O G R O W I N A L L R E G I O N S I N Q 3 12 NET SALES BY GEOGRAPHICAL AREA, EUR million YoY change in comparable currencies
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C A S H F L O W I M P R O V E D , C A P E X B E L O W 2 0 2 4 13 EUR million 7–9/2025 7–9/2024 1–9/2025 1–9/2024 2024 Net sales 344.1 313.6 957.3 874.8 1,289.8 Operating profit 21.8 4.1 0.7 -13.6 1.8 Operating profit, % 6.3% 1.3% 0.1% -1.6% 0.1% Segments EBITDA 65.4 58.8 135.1 118.1 185.2 Segments EBITDA, % 19.0% 18.8% 14.1% 13.5% 14.4% Segments operating profit 32.4 30.4 40.2 35.4 71.4 Segments operating profit, % 9.4% 9.7% 4.2% 4.1% 5.5% Segments ROCE, %* 3.6% 4.2% 3.9% Equity ratio, % 44.6% 49.6% 52.5% Gearing, % 86.2% 64.0% 48.2% Interest-bearing net debt 987.4 801.3 613.1 Capital expenditure 32.3 101.1 122.0 260.0 350.1 Cash flow from operating activities -80.6 -92.2 -185.9 -237.4 77.4 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. *Rolling 12 months
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14 R E D U C E D C A P E X A N D I M P R O V E D W O R K I N G C A P I T A L M A N A G E M E N T C O N T R I B U T E D T O B E T T E R C A S H F L O W CHANGE IN CASH FLOWS, EUR million 1–9/2025 vs. 1–9/2024
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S I G N I F I C A N T I N V E S T M E N T S I N 2 0 2 3– 2 0 2 5 T O B U I L D O U R F U T U R E P L A T F O R M 15 Investment phase approaching its end • Net investments in 2025 estimated to be EUR 180 million • Total investments in 2023–2025 approx. EUR 800 million • Capex returning to a level in line with depreciation • Romanian state aid up to ~EUR 100 million to be received from late ‘25 or early ‘26 onwards, lowering net investments
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B U S I N E S S U N I T S 16
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Q 3 : P A S S E N G E R C A R T Y R E S 17 Continued sales and profit growth EUR million 7−9/ 2025 7−9/ 2024 1−9/ 2025 1−9/ 2024 2024 Net sales 234.0 209.9 614.3 541.8 779.9 Net sales change in comparable currencies, % 13.2% 24.9% 14.9% 20.0% 20.2% Segment operating profit 38.9 34.4 48.7 38.6 52.2 Segment operating profit, % 16.6% 16.4% 7.9% 7.1% 6.7% • Net sales increased by 13.2% • ASP with comparable currencies improved • Share of >18” tires increased significantly • Segment operating profit improved due to price increases and favorable product mix
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NET SALES, EUR million Q 3 : P A S S E N G E R C A R T Y R E S B R I D G E Price/mix impacted segment operating profit positively by EUR 35 million SEGMENT OPERATING PROFIT, EUR million 18
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P A S S E N G E R C A R T Y R E S N E T S A L E S - Q U A R T E R L Y C H A N G E S Y o Y C h a n g e % 19 S a l e s V o l u m e s P r i c e / M i x C u r r e n c y
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Q 3 : H E A V Y T Y R E S 20 Lower volume affected net sales and profitability • Net sales decreased caused by lower volume of truck and agri tires • Profitability declined mainly due to lower volume and inventory revaluation EUR million 7−9/ 2025 7−9/ 2024 1−9/ 2025 1−9/ 2024 2024 Net sales 55.4 57.9 172.0 173.2 235.1 Net sales change in comparable currencies, % -4.4% -2.3% -0.6% -10.7% -8.0% Segment operating profit 5.0 7.5 18.3 21.5 30.0 Segment operating profit, % 9.0% 12.9% 10.6% 12.4% 12.8%
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Q 3 : V I A N O R 21 Improved sales and operating profit • Net sales with comparable currencies increased by 7.0% • Segment operating profit improved to EUR -6.4 million EUR million 7−9/ 2025 7−9/ 2024 1−9/ 2025 1−9/ 2024 2024 Net sales 74.9 69.4 231.4 220.8 354.9 Net sales change in comparable currencies, % 7.0% 2.4% 4.2% 1.9% 3.6% Segment operating profit -6.4 -6.6 -14.7 -15.0 -3.8 Segment operating profit, % -9.0% -9.5% -6.5% -6.8% -1.1%
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A S S U M P T I O N S A N D G U I D A N C E 22
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F A V O R A B L E D E V E L O P M E N T I N N O R T H A M E R I C A N T A R I F F S 23 May 3 Sept 1 The US imposes 25% tariffs on tire imports The US tariffs on EU tire imports reduced to 15%Aug 1 Canada removes counter-tariffs Close monitoring and mitigation of the impacts by reallocating selected product lines across factories, adjusting inventory levels, reassessing raw material supply and adjusting pricing March 4 Canada imposes 25% counter-tariffs on the tires produced in the US • ~85% of Nokian Tyres’ US volume produced locally in Dayton • Winter tires imported from Europe to the US. Canada supplied from the US and Europe • Tariffs increasing raw material sourcing costs for domestic manufacturing in the US • Indirectly tariffs may impact US consumer confidence and purchasing behavior • Currency fluctuations possible
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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 supported by increasing capacity in the Romanian and US factories as well as good availability of finished goods inventories. 2424
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Q&A
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A P P E N D I X 26
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NET SALES, EUR million 1 – 9 : P A S S E N G E R C A R T Y R E S B R I D G E Price/mix impacted segment operating profit positively by EUR 41 million SEGMENT OPERATING PROFIT, EUR million 27 A P P E N D I X
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7–9/2025 • Net sales EUR 344.1 million (313.6), 9.7% • Segments operating profit EUR 32.4 million (30.4) 1–9/2025 • Net sales EUR 957.3 million (874.8), 9.4% • Segments operating profit EUR 40.2 million (35.4) G R O U P S E G M E N T S O P E R A T I N G P R O F I T 2 0 2 1– Q 3 / 2 0 2 5 A P P E N D I X 28
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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 • Total of EUR 100 million bilateral revolving credit facilities due in 2026 were replaced by a total of EUR 100 million 2 + 1 + 1 -year bilateral revolving credit facilities • 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 29 D E B T P O R T F O L I O A S O F S E P T E M B E R 3 0 , 2 0 2 5 A P P E N D I X
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N E T D E B T A N D D E B T M A T U R I T I E S Available liquidity, EUR million Q3/2025 Q3/2024 Cash 89 160 Committed undrawn credit facilities 214 305 Total 303 466 30 *Withdrawn loans due in Q4/2025 A P P E N D I X
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D I S C L A I M E R 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.