Slides
Page 1
MAKING THE UNPREDICTABLE PREDICTABLE C A P I T A L M A R K E T S D A Y F E B R U A R Y 1 1 , 2 0 2 6 P A O L O P O M P E I P R E S I D E N T & C E O
Page 2
WITH THE LONGEST EXPERIENCE FROM EXTREME CONDITIONS SAFE DRIVING IS OUR TOP PRIORITY WE MAKE THE UNPREDICTABLE PREDICTABLE IN ANY WEATHER CONDITION 2
Page 3
128 YEARS OF HISTORY 3
Page 4
KEY MESSAGES 4 SUSTAINED EXPOSURE TO PREMIUM NICHES WITH PRICING POWER ROBUST PRODUCT PIPELINE SUPPORTING FUTURE GROWTH AND POSITIONING PROFITABILITY IMPROVEMENT DRIVEN BY INTERNAL OPERATIONAL ENHANCEMENTS NEW AND EFFICIENT SCALABLE MANUFACTURING PLATFORM EBITDA BACK TO PRE-CRISIS LEVEL WHILE IMPROVING FREE CASH FLOW AND DIVIDENDS
Page 5
NOKIAN TYRES IN A NUTSHELL 5 ~4 ,000 P R O F E S S I O N A L S 4 F A C T O R I E S 519 V I A N O R S E R V I C E C E N T E R S P R O D U C T S S O L D I N 47 C O U N T R I E S R & D T I R E B U S I N E S S1 >3 % O F N E T S A L E S I N D U S T R Y- L E A DI N G -79% C U T I N CO 2 F A C T O R Y E M I S S I O N S ( 2 0 1 5- 2 0 2 4 ) US Dayton (PC & LT) R O M A N I A Oradea (PC) F I N L A N D Nokia (PC & HT) Levypyörä (wheels) 1) Including Passenger Car Tyres and Heavy Tyres R&D operations and testing 2) Includes internal sales 62% 17% 26% N E T S A L E S B Y B U S I N E S S U N I T2 Passenger Car Tyres Heavy Tyres Vianor 53% 25% 22% N E T S A L E S B Y G E O G R A P H I C A L A R E A Nordics Other Europe Americas E U R 1 . 3 7BN E U R 1 . 3 7BN
Page 6
FAST SALES RECOVERY AFTER THE EXIT FROM RUSSIA 6 0% 5% 10% 15% 20% 0 500 1000 1500 2000 2021 2022 2023 2024 2025 Russian market Net sales Segments operating profit N E T S A L E S 2 0 2 11 N E T S A L E S 2 0 2 5 E U R 1 . 3 7BN E U R 1 . 3 9 B N Nordics Other Europe Americas EUR million 1) Net sales excluding Russia as reported Feb 7, 2023
Page 7
7 Segments operating profit +28% Operating profit 35.8M ( 1 . 8 ) P R O F I T A B I L I T Y K E Y L E V E R : Price/mix +58.5M Change in cash flows ~200M K E Y L E V E R S : Reduced capex and improved working capital management C A S H G E N E R A T I O N IN 2025 WE FOCUSED ON IMPROVING OUR MARGINS AND CASH FLOW
Page 8
OUR OPERATING LANDSCAPE 8
Page 9
NOKIAN TYRES IS A NICHE PLAYER FOCUSING ON HIGH -VALUE SEGMENTS 9 Summer1 B U D G E T E C O N O M Y P R E M I U M Winter All-season All-weather T O T A L R E P L A C E M E N T C A R T I R E M A R K E T ~ 6 5 0 M I N E U R O P E A N D N O R T H A M E R I C A ~130M ~40M ~60M G L O B A L T I R E M A R K E T ~ E U R 2 5 0 B N A D D R E S S A B L E M A R K E T 1) Summer incl. North American all-season tires Note: Graphs are illustrative and based on Nokian Tyres’ own estimates
Page 10
T E C H N O L O G Y & I N D U S T R Y E V O L U T I O N Electrification Digitalization and AI Supply chain efficiency V E H I C L E M A R K E T Growing replacement market Growing SUV & CUV Leasing & sharing models S U S T A I N A B I L I T Y Regulatory requirements Circular materials Energy transition 10 WE ARE POSITIONED TO SUCCEED IN A CHANGING OPERATING ENVIRONMENT P E O P L E Talent management & retention Social media influence Higher consumer knowledge G E O P O L I T I C S Global conflicts Trade barriers Regulatory uncertainty
Page 11
ELECTRIFICATION SUPPORTS PREMIUM MIX 11 T O T A L G L O B A L N E W C A R S A L E S , U N I T S +28.4% CAGR -0.5% CAGR ~ 3 0 % B E V SHARE OF NEW CAR SALES, BECOMING THE DOMINANT POWERTRAIN GLOBALLY O P P O R T U N I T Y T O I M P R O V E O U R P R O D U C T M I X AS GROWING BEV ADOPTION ACCELERATES THE SHIFT TO LARGER RIM SIZES AND PREMIUM SPECIFICATIONS BY 2030, WE WILL SEE… Source: S&P Global Mobility 3% 97% 2020 16% 84% 2025 29% 71% 2030 75 million 92 million 97 million +2.7% CAGR Gasoline, diesel & hybrid Electric vehicle (BEV)
Page 12
AGING VEHICLES AND LARGER CARS DRIVE TIRE DEMAND R E G I S T E R E D V E H I C L E S A N D A V G . V E H I C L E A G E I N T H E U . S . A N D E U ( 2 0 1 8- 2 0 2 3 ) H I G H E R D E M A N D I N R E P L A C E M E N T T I R E M A R K E T DUE TO AN INCREASING AND AGING VEHICLE PARC BY 2030, WE WILL SEE… R I S I N G S H A R E O F H E A V I E R V E H I C L E S DRIVES DEMAND FOR HIGH- VALUE, LARGER TIRES 12 50 100 150 200 250 300 11.0 11.5 12.0 12.5 13.0 13.5 2018 2019 2020 2021 2022 2023 # Vehicles million Avg. vehicle age U.S. registered vehicles L A R G E V E H I C L E S A S % O F A L L N E W V E H I C L E S U.S. (% of production) 2 63% 67% 69% 74% 73% 75% EU registered vehicles 33% 39% 41% 44% 46% 48%EU (% of sales) 1 U.S. avg. vehicle age. EU avg. vehicle age. 1) Including SUVs, 2) Including SUVs, truck SUVs, minivans, and pickups Sources: Eurostat: Passenger cars by age 2013-2024 -dataset, ACEA: Vehicles in use Europe reports 2018-2023, U.S. Department of Transportation: Highway Statistics 2023, U.S. Bureau of Transportation Statistics: Average Age of Automobiles and Trucks in Operations in the United States -dataset
Page 13
MOBILITY TRENDS BOOST HIGH -VALUE GROWTH 13 10% 19% 23% 30% 27% 26% 60% 54% 51% 2025 2030 2035 Walk, private bicycle, public transit Private car On-demand mobility (Leased/Shared) GROWING USE OF LEASED AND SHARED MOBILITY (E.G., ROBOTAXIS) WILL INCREASE DEMAND FOR DURABLE, SAFETY- PROVEN TIRES H I G H E R S H A R E OF MOBILITY ON PRIVATE CARS AND ON-DEMAND PLATFORMS MEANS MORE FREQUENT TIRE REPLACEMENT O P P O R T U N I T Y T O P R O M O T E T O T A L V A L U E O F O W N E R S H I P AS DEMAND FOR SAFE AND LONG-LASTING TIRES INCREASES BY 2030, WE WILL SEE… Source: IHS Markit Automotive (2022); Statista
Page 14
TIRE INDUSTRY IS INCREASINGLY PRIORITIZING SUSTAINABILITY 14 S U P P L Y C H A I N R E S P O N S I B I L I T Y Commitments to ethical labor, human rights, and deforestation-free sourcing across supply chains C L I M A T E A C T I O N The tire industry aims to reduce greenhouse gas emissions across value chains, with most premium manufacturers targeting net zero by 2050. S U S T A I N A B L E M A T E R I A L U S E Most premium manufacturers are increasing the share of renewable, recycled, and responsibly sourced materials in tires to as much as 50%. S U S T A I N A B I L I T Y INCREASINGLY INFLUENCING MATERIALS, MANUFACTURING, AND MARKET EXPECTATIONS O P P O R T U N I T Y TO DIFFERENTIATE WITH INNOVATIVE RAW MATERIAL SOLUTIONS BY 2030, WE WILL SEE…
Page 15
15 MARKET TRENDS ARE SUPPORTING OUR STRATEGIC JOURNEY G R O W I N G P R E M I U M D E M A N D I N S E L E C T E D S E G M E N T S SHIFT TO HIGH -VALUE TIRES E X P A N D I N G R E P L A C E M E N T M A R K E T
Page 16
OUR STRATEGIC JOURNEY 16
Page 17
WE MOVE FROM THE UNPREDICTABLE TO GREATER PREDICTABILITY 17 LO WER RIS K P RO FILE - GREA TER FLEXIBILITY – H IGH ER A D D ED VA LU E B U I L D I N G T H E N E W N O K I A N T Y R E S P L A T F O R M 2 0 2 2- 2 0 2 5 S U S T A I N A B L E V A L U E- D R I V E N G R O W T H 2 0 2 6- 2 0 2 9
Page 18
WE ARE REFOCUSING OUR POSITION TO WIN WHERE IT MATTERS LEADING POSITION IN WINTER ABOVE -MARKET GROWTH IN ALL-SEASON AND ALL-WEATHER ABOVE -MARKET GROWTH IN AGRICULTURE AND FORESTRY P A S S E N G E R C A R T Y R E S1 H E A V Y T Y R E S1 V I A N O R E U R O P E, B 2 C A N D B 2 B C H A N N E L S A S K E Y E N A B L E R S 18 1) In Europe and North America
Page 19
19 WINNING IN WINTER, STRENGTHENING IN ALL -SEASON P A S S E N G E R C A R T Y R E S V O L U M E M I X D E V E L O P M E N T 2024 2025 2026 2027 2028 2029 Winter Summer All-season All-weather 1.4X Summer All-season All-weather Winter P A S S E N G E R C A R T Y R E S 2 0 2 5 N E T A S P B Y C A T E G O R Y
Page 20
SUPPORTED BY CONTINUOUSLY GROWING WINTER TIRE BUSINESS … 2020 I N N O V A T I O N EXTREME, UNPREDICTABLE WINTERS REQUIRE STRONG EXPERTISE AND RIGOROUS TESTING. R E G U L A T I O N COUNTRIES’ REGULATIONS ARE SUPPORTING USE OF WINTER, ALL-SEASON AND ALL-WEATHER TIRES. E X T R E M E W E A T H E R RATHER THAN JUST MILDER WINTERS, CLIMATE CHANGE BRINGS MORE EXTREME, UNPREDICTABLE WEATHER SHIFTS. +2.1% CAGR +0.6% CAGR +1.8% CAGR North America Europe Total market 2018 2019 2020 2021 2022 2023 2024 2025 Source: Global Data
Page 21
AND EVEN FASTER GROWTH IN ALL -SEASON AND ALL -WEATHER SEGMENT 2121 I N N O V A T I O N EXTREME, UNPREDICTABLE WEATHER CONDITIONS REQUIRE STRONG EXPERTISE AND RIGOROUS TESTING. R E G U L A T I O N COUNTRIES’ REGULATIONS ARE SUPPORTING USE OF WINTER, ALL-SEASON AND ALL-WEATHER TIRES. C O N V E N I E N C E CONSUMERS INCREASINGLY PREFER A SINGLE TIRE THAT OFFERS SAFE, ADEQUATE PERFORMANCE ACROSS MULTIPLE SEASONS. 2019 2020 2021 2022 2023 2024 2025 +13.0% CAGR1 +18.4% CAGR1 +14.7% CAGR North America Europe Total market 1) North America includes all-weather tires and Europe all-season tires Source: Tyres Europe, USTMA (US) and TRAC (CA) and Nokian Tyres’ own estimates
Page 22
EXPANDING IN LARGER, HIGH -VALUE RIM SIZES 22 P A S S E N G E R C A R T Y R E S : G R O S S M A R G I N B Y R I M S I Z E ≤ 17" ≥ 18" 2.5x 2024 2029 P A S S E N G E R C A R T Y R E S : R I M S I Z E V O L U M E D E V E L O P M E N T 2.0x 1.3x ≤ 17” ≥ 18”
Page 23
PRIORITIZING THE MOST ATTRACTIVE NICHES IN HEAVY TYRES 23 AgricultureForestryOn-road 2x H E A V Y T Y R E S G R O S S M A R G I N B Y C A T E G O R Y H E A V Y T Y R E S N E T S A L E S G R O W T H B Y C A T E G O R Y 2024 2029 9% CAGR 8% CAGR Agriculture Forestry On-road 2% CAGR
Page 24
NEW PRODUCTS WILL DRIVE A SIGNIFICANT SHARE OF NET SALES GROWTH 24 TOTAL IMPACT EUR 1.5 BN IN 2026-2029 New products 30% Existing products 70% P A S S E N G E R C A R T Y R E S ~90% from winter and all-season tires H E A V Y T Y R E S ~75% from agri and forestry tires New products 20% Existing products 80%
Page 25
INDEPENDENT TESTS CONFIRMING OUR PREMIUM PERFORMANCE 25 N O K I A N T Y R E S H A K K A P E L I I T T A 1 0 W I N T E R T I R E S N O K I A N T Y R E S S E A S O N P R O O F 2 A L L- S E A S O N T I R E S
Page 26
26 WE CONTINUE TO DEVELOP VALUE -ADDED SOLUTIONS A WA RD-WINNING S MA R T TIRE TECH NO LO GY FO R A GRICU LTURAL TIRES
Page 27
27 A N E W D I S R U P T I V E T E C H N O L O G Y C O M I N G S O O N I V A L O W H I T E H E L L O N M A R C H 2 , 2 0 2 6 … I S A B O U T T O B E I N T R O D U C E D T O T H E M A R K E T .
Page 28
WE WILL INVEST SIGNIFICANTLY IN OUR BRAND TO SUPPORT FUTURE DEMAND 28 C O N S U M E R F O C U S
Page 29
Partner-led centers in Czech Rep., Romania, Slovakia and Ukraine VIANOR WILL STRENGTHEN CUSTOMER PROXIMITY AND BRAND VALUE A K E Y S A L E S A N D S E R V I C E C H A N N E L F O R C A R A N D H E A V Y T I R E S I N E U R O P E • Deepens relationships with consumers, leasing and fleet customers • Supports high market share and brand strength in core regions • Effective tool for premium positioning The largest tire and car service chain in the Nordics, incl. own and partner-led centers O T H E R E U R O P E 1 9 1 C E N T E R S N O R D I C S 3 2 8 C E N T E R S 29 P O T E N T I A L F U T U R E E X P A N S I O N V I A N E W P A R T N E R S H I P S O R B O L T- O N A C Q U I S I T I O N IN K E Y E U R O P E A N M A R K E T S
Page 30
A BALANCED MANUFACTURING PLATFORM WILL ENABLE A LOCAL -TO -LOCAL BUSINESS MODEL 30 R E D U C E D E X P O S U R E T O C U R R E N C Y F L U C T U A T I O N S R E D U C E D R I S K S A N D S U P P L Y C H A I N D I S R U P T I O N S L O W E R D U T I E S A N D G E O P O L I T I C A L U N C E R T A I N T Y L O W E R E N V I R O N M E N T A L I M P A C T ADVANTAGES Mid-term capacity N O R T H A M E R I C A D A Y T O N N O R D I C S N O K I A C E N T R A L E U R O P E O R A D E A Capacity utilization in 2025 25% 30% 45% 2 1 1 1 1) Percentage of total passenger car tire production capacity in 2028 2) Internal target capacities in 2028. A network of manufacturing partners supporting own production
Page 31
HIGHER SATURATION WILL IMPROVE EFFICIENCY AND REDUCE UNIT COSTS 31 I M P R O V E D P R O D U C T I V I T Y A C R O S S S I T E S I N C R E A S E D C A P A C I T Y U T I L I Z A T I O N R E D U C E D W A S T E ONGOING ACTIONSS C A L I N G V O L U M E S D R I V E S L O W E R U N I T C O S T S Production volume Unit cost 20292025
Page 32
32 UPDATED FINANCIAL TARGETS
Page 33
WE HAVE UPDATED OUR FINANCIAL TARGETS 33 Dividend policy unchanged: Nokian Tyres’ target is topay a dividend of at least 50% of its net earnings T A R G E T S B Y T H E E N D O F 2 0 2 9 NET SALES EUR 1.8-2.0 BILLION N E T S A L E S SEGMENTS EBITDA >24% SEGMENTS OPERATING PROFIT >15%P R O F I T A B I L I T Y C A P I T A L S T R U C T U R E NET DEBT/SEGMENTS EBITDA <2
Page 34
34 ONGOING INITIATIVES WILL STRENGHTEN OUR POSITION AND IMPROVE EFFICIENCY 34 C O M M E R C I A L • IMPROVING POSITION IN PCT CENTRAL EUROPE AND NORTH AMERICA • STRENGTHENING PARTNERSHIPS • CONSISTENT PRICE REALIZATION EUR 100-120 million O P E R A T I O N S • REDUCING FIXED COSTS THROUGH SCALING • IMPROVING EFFICIENCY ACROSS SITES • ENHANCING SUPPLY CHAIN EFFICIENCY EUR 40-50 million F I X E D C O S T S & I N D I R E C T S O U R C I N G • OPTIMIZING FIXED COSTS • OPTIMIZING INDIRECT SPENDING INCLUDING FOLLOWING RIGOROUS PURCHASE PROCESS T I R E D E S I G N & R A W M A T E R I A L S • OPTIMIZING RAW MATERIAL SOURCING AND USE • OPTIMIZING PRODUCT DESIGNS FOR THE SUSTAINABLE USE OF RAW MATERIALS EUR 50-60 million S E G M E N T S E B I T D A I M P R O V E M E N T B Y 2 0 2 9
Page 35
WE AIM TO GROW PROFITABLY ACROSS ALL BUSINESSES 35 N E W P R O D U C T S V O L U M E P R I C E / M I X KEY DRIVERS O P E R A T I O N A L I M P R O V E M E N T S 2029 Heavy Tyres PCT Central Europe PCT Nordics and Vianor combined PCT North America 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 >15% 2025
Page 36
KEEPING FOCUS ON ADVANCING SUSTAINABILITY EFFORTS 36 S A F E T I R E S M A I N N O N - F I N A N C I A L T A R G E T S C L I M A T E H U M A N R I G H T S P E R S O N N E L W E L L- B E I N G S A F E T Y SHARE OF RECYCLED OR RENEWABLE RAW MATERIALS IN TIRES: 50% BY 2030 ABSOLUTE SCOPE 1 & 2 GHG EMISSIONS REDUCTION BY 42% BY 2030 FROM 2022 LOST-TIME INCIDENT FREQUENCY (LTIF) TO 1.5 BY 2030 100% SUSTAINABILITY AUDIT COVERAGE FOR HIGH-RISK SUPPLIERS 2 0 2 5 28% 28%-38% 3.7 100% CONTINUOUS IMPROVEMENT OF THE SENTIMENT OF EQUAL OPPORTUNITIES 641 1) Equality score in personnel survey on a scale 0-100, baseline 2021: 65
Page 37
37 NOKIAN TYRES IS AN ATTRACTIVE LONG -TERM INVESTMENT OPPORTUNITY Leading position in winter tires Above-market growth in all- season and all-weather tires Above-market growth in agri and forestry tires N E T S A L E S E U R 1 . 8- 2 . 0 B I L L I O N S E G M E N T S E B I T D A > 2 4 % S E G M E N T S O P E R A T I N G P R O F I T > 1 5 % N E T D E B T / S E G M E N T S E B I T D A < 2 H O W W E W I N W H E R E W E P L A Y W H A T W E F O C U S O N Nordics: strengthen our #1 position Central Europe: grow above market average North America: grow above market average Value captured by premium positioning and mix enhancement Vianor Europe, B2B and B2C as enablers Strong product innovation Consumer focus Operational excellence Local-to-local business model Experienced and engaged team F I N A N C I A L T A R G E T S* *Targets extending until the end of 2029
Page 38
Thank you!
Page 39
DRIVING SOLID FINANCIAL PROGRESS C A P I T A L M A R K E T S D A Y F E B R U A R Y 1 1 , 2 0 2 6 J A R I H U U H T A N E N I N T E R I M C F O
Page 40
UPDATED FINANCIAL TARGETS ALIGNED WITH OUR STRATEGY 40 Dividend policy unchanged: Nokian Tyres’ target is topay a dividend of at least 50% of its net earnings T A R G E T S B Y T H E E N D O F 2 0 2 9 NET SALES EUR 1.8-2.0 BILLION N E T S A L E S SEGMENTS EBITDA >24% SEGMENTS OPERATING PROFIT >15%P R O F I T A B I L I T Y C A P I T A L S T R U C T U R E NET DEBT/SEGMENTS EBITDA <2
Page 41
0.55 0.55 0.55 0.25 0.25 0,00 0,20 0,40 0,60 2021 2022 2023 2024 2025 2025 DEMONSTRATES SOLID PROGRESS TOWARD OUR 2029 TARGETS 41 N E T S A L E S S E G M E N T S E B I T D A- % 1 N E T D E B T / S E G M E N T S E B I T D A1 26.7 20.7 14.5 14.4 16.2 0 5 10 15 20 25 30 2021 2022 2023 2024 2025 2029 1.39 1.35 1.17 1.29 1.37 0,0 0,5 1,0 1,5 2,0 2021 2022 2023 2024 2025 2029 EUR billion Target 1.8-2.0 Target >24% -1,0 0,0 1,0 2,0 3,0 2021 2022 2023 2024 2025 2029 Target <2 % EUR/share D I V I D E N D P E R S H A R E 1) 2021 and 2022 figures include Russia 3.03.3 1.30.4-0.2 0.60 0.40 0.20 3.0 2.0 1.0 0.0 -1.0 2.0 1.0 0.0 0.5 1.5 Net sales Russian market
Page 42
42 OUR WAY TO DRIVE SEGMENTS EBITDA IMPROVEMENT 16.2% >24% High-value mix and premium positioning Operational excellence Driven by North America and Central Europe Commercial and operational improvement initiatives (page 34) embedded into this bridge. Brand, R&D and sales capabilities Segments EBITDA 2025 Volume Price/mix Cost management Growth investments Segments EBITDA 2029
Page 43
CAPEX NORMALIZING AFTER THE MAJOR INVESTMENT PHASE 0 100 200 300 2021 2022 2023 2024 2025 2029 43 EUR million Capital expenditure Depreciation Target • INVESTMENT PHASE COMPLETED • EUR 1 BILLION INVESTED IN FIVE YEARS • CAPEX IS NORMALIZING TO A LEVEL ALIGNED WITH DEPRECIATION INVESTMENTS 2021-2025 1) 2021 and 2022 figures include Russia 2) Romanian state aid of EUR 32.6 million not included 1 1 2
Page 44
F R E E C A S H F L O W C O M P O N E N T S S E G M E N T S E B I T D A 2029 SEGMENTS EBITDA TARGET OF >24%, PROVIDING A STRONG BASE FOR CASH FLOW W O R K I N G C A P I T A L , N E T IMPROVING ROTATION THROUGH FOCUS ON INVENTORY, RECEIVABLES AND PAYABLES F I N A N C I A L E X P E N S E S , N E T APPROX. 2-3% OF NET SALES. NET DEBT/SEGMENTS EBITDA <2 I N C O M E T A X E S P A I D , N E T MODERATE CASH TAXES DUE TO LOSSES CARRIED FORWARD C A P E X NORMALIZING TO A LEVEL ALIGNED WITH DEPRECIATION 44 KEY DRIVERS OF STRONGER AND MORE PREDICTABLE FREE CASH FLOW
Page 45
45 C L E A R L E V E R A G E T A R G E T • Target is net debt/segments EBITDA <2 • Future capex funded by cash flow and stronger balance sheet B A L A N C E D F I N A N C I N G • EUR 300 million RCF and EUR 500 million commercial paper program in place for NWC financing • Opportunity to balance our financing sources and extend maturities 0 300 600 900 2021 2022 2023 2024 2025 Target I N T E R E S T- B E A R I N G D E B T EUR million EUR million STABLE CAPITAL STRUCTURE AND BALANCED DEBT PORTFOLIO 0 100 200 300 400 500 2026 2027 2028 2029 2030 2031- M A T U R I T Y S T R U C T U R E A S O F D E C 3 1 , 2 0 2 5 Committed Credit Facilities Leases/IFRS16 Debt Market/Commecial Papers/Bonds Banks
Page 46
46 Stronger brand, R&D and sales capabilities. Capex to efficiency improvements, digitalization and maintenance. P R O F I T A B L E O R G A N I C G R O W T H A T T R A C T I V E S H A R E H O L D E R R E T U R N Clear dividend policy with a target to distribute at least 50% of net earnings. Share buybacks not currently applicable. M & A C O N S I D E R E D O N L Y W H E N C L E A R L Y V A L U E - A C C R E T I V E A N D S T R A T E G I C A L L Y R E L E V A N T . BALANCED CAPITAL ALLOCATION DRIVING LONG -TERM SHAREHOLDER VALUE
Page 47
Thank you!
Page 48
STRENGTHENING #1 POSITION C A P I T A L M A R K E T S D A Y F E B R U A R Y 1 1 , 2 0 2 6 T R O N G U L B R A N D S E N S V P , P C T N O R D I C S
Page 49
NORDICS IN A NUTSHELL 49 MA RK ET LEA D ER H O M E M A R K E T S #1 W I N T E R T I R E E X P E R T 5 3 % O F G R O U P S A L E S H I G H P R O F I T A B I L I T Y S T A B L E A N D P R E D I C T A B L E S A L E S F U T U R E P O T E N T I A L 500 550 600 650 700 750 2021 2022 2023 2024 2025 N E T S A L E S1EUR million 1) Nordics net sales at group level (not only Passenger Car Tyres Nordics). 2021 and 2022 net sales exclude Russia as reported Feb 7, 2023
Page 50
1) Global Data SOLID AND STABLE MARKET 50 NO RD ICS TIRE MA RK ET ~17 MILLIO N TIRES 1 L A R G E R R I M S I Z E S OUR FOCUS: W I N T E R T I R E S P R E M I U M P O S I T I O N 2021 2025 2029 N O K I A N T Y R E S S H A R E O F ≥ 1 8 ” T I R E S +10ppt 76% 76% 24% 24% 2025 2029 Summer Winter Market growing at 0.5-1.0% CAGR (2025-2029) New car sales driving the share of ≥ 18” tires +14ppt N O K I A N T Y R E S S E A S O N A L M I X D E V E L O P M E N T N O R D I C S - P A S S E N G E R C A R T Y R E S
Page 51
INNOVATIONS DRIVE PREMIUM SALES MIX AND MARGINS 51 +90 YEARS O F N O R D I C W I N T E R T I R E E X P E R T I S E N E W P R O D U C T S S E T A N E W STANDARD I N T H E M A R K E T P R O D U C T P O R T F O L I O T O B E R E N E W E D 100% 2 0 2 6- 2 0 2 9 A T T R A C T I V E P R O D U C T P O R T F O L I O W I T H W I N T E R F L A G S H I P Majority of SKUs in ≥ 18” sizes N O R D I C S - P A S S E N G E R C A R T Y R E S
Page 52
N O K I A N T Y R E S H A K K A S U M M E R T I R E S 52 N O K I A N T Y R E S H A K K A P E L I I T T A 1 0 W I N T E R T I R E S P R O V E N Q U A L I T Y , P E R F O R M A N C E A N D S A F E T Y T R U S T E D N O R D I C B R A N D S T R O N G C O N S U M E R B A S E A N D L O Y A L T Y W I N T E R T I R E E X P E R T ST 1 B R A N D A W A R E N E S S ST 1 Nepa Insight Oy Study Q4/2024-Q3/2025 N O R D I C S - P A S S E N G E R C A R T Y R E S YEARLY TEST WINS REINFORCING OUR COMPETITIVE ADVANTAGE
Page 53
53 A T T R A C T I V E P A R T N E R I N T H E M A R K E T E A R N I N G S P O T E N T I A L ATTRACTIVE MARGINS OPPORTUNITY P R E M I U M B R A N D A N D P R O D U C T S FLAGSHIP HIGH-QUALITY PRODUCTS LIKE NOKIAN TYRES HAKKAPELIITTA R E L I A B I L I T Y A N D T R U S T HIGH AVAILABILITY, DEPENDABLE DELIVERIES AND PREDICTABLE PERFORMANCE STRONG SALES CHANNELS SUPPORT PREMIUM GROWTH S T R O N G P R E S E N C E I N A L L S A L E S C H A N N E L S I N A L L K E Y M A R K E T S V I A N O R I N A K E Y R O L E S E C U R I N G P R E M I U M P O S I T I O N I N G A N D V O L U M E S N O R D I C S - P A S S E N G E R C A R T Y R E S
Page 54
EFFICIENT OPERATIONS DRIVING CONSISTENT PERFORMANCE 54 N O R D I C F O O T P R I N T A G I L E A N D E F F I C I E N T O P E R A T I O N S E F F I C I E N T S U P P L Y C H A I N Supply chain optimized for seasonal Nordic business. Predictable volumes enabling stable, efficient operations. Local production close to core markets. N O R D I C S - P A S S E N G E R C A R T Y R E S
Page 55
STRENGTHENING #1 POSITION 55 Attractive market with growth driven by larger rim sizes. # 1 P O S I T I O N W I T H P R E M I U M W I N T E R F O C U S I N N O V A T I O N L E A D E R S H I P S U P E R I O R GO - TO - M A R K E T E X E C U T I O N Market leading premium offering, strengthening our competitive advantage. Strong demand visibility, reliable supply and high profitability. N O R D I C S - P A S S E N G E R C A R T Y R E S
Page 56
Thank you!
Page 57
ACCELERATING PROFITABLE GROWTH C A P I T A L M A R K E T S D A Y F E B R U A R Y 1 1 , 2 0 2 6 T O M M I A L H O L A S V P , P C T C E N T R A L E U R O P E
Page 58
CENTRAL EUROPE IN A NUTSHELL 58 S A L E S I N 22 C O U N T R I E S 2 5 % O F G R O U P S A L E S 0 100 200 300 400 500 2021 2022 2023 2024 2025 N E T S A L E S1 EUR million S H A R E O F H I G H- V A L U E M I X I N C R E A S I N G 200 V I A N O R P A R T N E R S T O R E S I N 4 C O U N T R I E S T U R N A R O U N D A N D M A R G I N R E C O V E R Y L O N G- T E R M M A R K E T P O T E N T I A L 1) Other Europe net sales at group level (not only Passenger Car Tyres Other Europe). 2021 and 2022 net sales exclude Russia as reported Feb 7, 2023 900 N A D P A R T N E R S T O R E S I N 1 0 C O U N T R I E S
Page 59
GROWING FASTER THAN THE MARKET M A R K E T D E V E L O P M E N T1 2 0 2 1- 2 0 2 5 ( P C S ) Winter All-season+11% CAGR 3% CAGR N O K I A N T Y R E S S E A S O N A L M I X D E V E L O P M E N T ( P C S ) 20292025 +13% CAGR +12% CAGR 83% 1) Industry associations’ sales and Nokian Tyres’ own estimates of sales of other tire manufacturers that do not belong to any association. 59 CENTRA L EU RO P E REP LA CEMENT TIRE MA RK ET ~3 50 MILLIO N TIRES 1 A C C E L E R A T E I N A L L- S E A S O N G R O W I N W I N T E R G R O W S E L E C T I V E L Y I N S U M M E R OUR FOCUS: C E N T R A L E U R O P E - P A S S E N G E R C A R T Y R E S Winter All-season Summer
Page 60
FROM PRODUCT FAMILY RENEWAL TO RESULTS N O K I A N T Y R E S S N O W P R O O F P N O K I A N T Y R E S S N O W P R O O F C N O K I A N T Y R E S S N O W P R O O F 1 N O K I A N T Y R E S S E A S O N P R O O F 1 N O K I A N T Y R E S S E A S O N P R O O F C1 M+S N O K I A N T Y R E S W E T P R O O F 1 M+S M+S M+S N O K I A N T Y R E S C A R G O P R O O F C W I N T E R T I R E S N O K I A N T Y R E S S N O W P R O O F 2 N O K I A N T Y R E S S N O W P R O O F 2 S U V M+S A L L - S E A S O N S U M M E R T I R E S P A S S E N G E R C A R S & S U V ’ S V A N S M+S M+S N O K I A N T Y R E S P O W E R P R O O F 1 N O K I A N T Y R E S S E A S O N P R O O F 2 M+S N O K I A N T Y R E S P O W E R P R O O F 2 2 0 2 5 2 0 2 5 2 0 2 5 2 0 2 5 D RIVING BRAND VA LU E A ND P RO FITABILITY TH RO U GH INNO VA TION C E N T R A L E U R O P E - P A S S E N G E R C A R T Y R E S
Page 61
61
Page 62
IMPROVING MIX THROUGH GROWTH IN LARGER RIM SIZES S H A R E O F L A R G E R T I R E S I N C R E A S I N G N O K I A N T Y R E S W I N N I N G M A R K E T S H A R E S A L E S M I X S H I F T B O O S T I N G P R O F I T A B I L I T Y M A R K E T D E V E L O P M E N T1 2 0 2 1- 2 0 2 5 ( P C S ) +8% CAGR ≤ 17”-4% CAGR ≥ 18” N O K I A N T Y R E S R I M S I Z E M I X D E V E L O P M E N T ( P C S ) 62 1) Europe excluding Nordic countries based on industry association member sales 2025 2029 +24% CAGR +9% CAGR C E N T R A L E U R O P E - P A S S E N G E R C A R T Y R E S
Page 63
INCREASING FOCUS ON RETAIL Continue to grow with local market- leading hybrid distributors Leverage Pan- European distributors reach D IS TRIBUTIO N RETA IL P O INTS -OF -S A LE Continue to grow with large retail chains like Point-S Expand local business with new premium retail chains Expand branded retail reach for example in Germany Focus on digital Nokian Tyres Authorized Dealers for example in France … C E N T R A L E U R O P E - P A S S E N G E R C A R T Y R E S
Page 64
ACCELERATING PROFITABLE GROWTH 64 V A L U E- D R I V E N MIX P R E M I U M P O S I T I O N I N G L O C A L P R O D U C T I O N S T R O N G E R B R A N D H IGH ER -VA LUE MIX INCREA S ING MA RK ET S H A RE GA INS IN S ELECTED NICH ES MO D ERN P RO D UCTIO N WITH S U P PLY RELIA BILITY C E N T R A L E U R O P E - P A S S E N G E R C A R T Y R E S
Page 65
Thank you!
Page 66
D I V E R S I FY I N G A N D O U T G R O W I N G E N D M A R K E T S I N P R E M I U M S E G M E N T S C A P I T A L M A R K E T S D A Y F E B R U A R Y 1 1 , 2 0 2 6 C H R I S O S T R A N D E R S V P , N O R T H A M E R I C A
Page 67
NORTH AMERICA IN A NUTSHELL 67 U N I T S A L E S ~63% W I N T E R & A L L- W E A T H E R W I N T E R T I R E S #1 I N C A N A D A O V E R 10,000 R E T A I L P O I N T S- OF - S A L E S P R E M I U M G R O W T H P L A T F O R M N E T S A L E S1EUR million xx% F A V O R A B L E D E M A N D S T R U C T U R E 8 5 % O F U . S . D E M A N D S U P P L I E D B Y D A Y T O N 22% O F G R O U P S A L E S 0 100 200 300 400 2021 2022 2023 2024 2025 1) Americas net sales at group level (not only Passenger Car Tyres Americas). 2021 and 2022 net sales exclude Russia as reported Feb 7, 2023
Page 68
S T A B L I Z A T I O N & M A R K E T F O C U S Dayton Finished Goods Warehouse National distribution Localized R&D 2024 - FROM IMPORTING TO DOMESTIC SUPPLY 68 Dayton factory grand opening 1 0 0 % I M P O R T S - 2019 P R O D U C T I O N T R A N S I T I O N Dayton ramp-up Re-tooling of Capacity 2020 - 2023 N O R T H A M E R I C A - P A S S E N G E R C A R T Y R E S
Page 69
NEW ALL -SEASON AND WINTER LAUNCHES DRIVING HIGHER -VALUE, LARGER RIM SIZE MIX M A R K E T D E V E L O P M E N T 2 0 2 3- 2 0 2 5 22% 85% 2025 2029 2025 2029 N O K I A N T Y R E S S H A R E O F N E W P R O D U C T S1 N O K I A N T Y R E S S H A R E O F ≥ 1 8 ” +3ppt +3% CAGR Light Truck +4% CAGR ≥ 18” Premium All-weather 1) New product unit % of portfolio includes successor product evolution less than 3 years old. NO RTH A MERICA N REP LA CEMENT TIRE MA RK ET ~281 MILLIO N TIRES 69 N O R T H A M E R I C A - P A S S E N G E R C A R T Y R E S
Page 70
PRIMARY GROWTH FOCUS AREAS IN NORTH AMERICA 70 Share-of-wallet gains with Strategic Accounts Promote demand for winter and all-weather Enhanced brand awareness SNOWBELT SUCCESS U.S. DISTRIBUTION NETWORK Establish & grow national distribution National retail partnerships Regional retail penetration N O R T H A M E R I C A - P A S S E N G E R C A R T Y R E S PREMIUM ALL SEASON GROWTH Accelerated New Product Development All-weather and light truck penetration Drive significant brand awareness
Page 71
71 ENGINEERED AND MANUFACTURED FOR THE LARGEST RETAILER IN THE U.S. N O K I A N T Y R E S P R O P R I E T A R Y A L L- W E A T H E R E N C O M P A S S A W 0 2 NOKIAN TYRES ENCOMPASS AW02 • Versatile all-weather tire for four-season use • Severe Service Symbol (3PMSF) A PRODUCT OF A PREMIUM PARTNERSHIP • Exclusively developed with Discount Tire • Highly rated in Treadwell testing P O W E R L I N E S I Z E R A N G E S T O M E E T N O R T H A M E R I C A N D E M A N D Severe Service Symbol (3PMSF) EV Suitable Made in Dayton, TN N O R T H A M E R I C A - P A S S E N G E R C A R T Y R E S
Page 72
72 MAKING THE UNPREDICTABLE PREDICTABLE B U I L D I N G B R A N D A W A R E N E S S • Global IIHF sponsorship • Brand ambassador Kimi Räikkönen (F1 driver) • Alterra Ski Resorts partnership C O N V E R T I N G P R E M I U M D R I V E R S • Demand for premium winter and all-weather • Pull-through demand for all-season & light-truck S U P P O R T I N G R E T A I L P A R T N E R S • Cooperative advertising and events • Enhanced training with retail employees N O R T H A M E R I C A - P A S S E N G E R C A R T Y R E S
Page 73
EXPANDING NATIONWIDE AVAILABILITY 73 • New in 2025: National distribution • Strengthens nationwide presence • Over 1,000 Pioneer program dealers RETAIL POINTS -OF -SALE 2023 2025 2029 2x 3x • Retailers access distributor inventory • Enables smaller quantity orders DISTRIBUTION RETAIL N O R T H A M E R I C A - P A S S E N G E R C A R T Y R E S
Page 74
ACCELERATING PROFITABLE GROWTH 74 P R E M I U M P R O D U C T F O C U S F A S T E R P O R T F O L I O R E F R E S H L O C A L P R O D U C T I O N S T R O N G E R B R A N D P REMIUM, H IGH - VALUE MIX D ESIGNED FO R LO CA L D EMA ND STRO NGER BRAND A WA RENESS A ND CU S TO MER LO YA LTY MO D ERN P RO D UCTIO N WITH LO CA L-FO R-LO CA L SUP PLY N O R T H A M E R I C A - P A S S E N G E R C A R T Y R E S
Page 75
Thank you!