Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q3 2021 Earnings Presentation
26 slides from Nokian Renkaat Oyj's earnings presentation, Nov 2, 2021
Slide 1: Strong Volume and Profit Growth
STRONG VOLUME AND PROFIT GROWTH INTERIM REPORT JANUARY–SEPTEMBER 2021 NOVEMBER 2, 2021 JUKKA MOISIO – CEO TEEMU KANGAS-KÄRKI – CFO
Slide 2: Nokian Tyres' Revised Growth Strategy: Ambitious Leap Forward
NOKIAN TYRES’ REVISED GROWTH STRATEGY: AMBITIOUS LEAP FORWARD
Slide 3: Mid-term target: EUR 2 billion net sales with 20% operating profit and ROCE
MID-TERM TARGET: EUR 2 BILLION IN NET SALES WITH 20% OPERATING PROFIT AND ROCE PURPOSE EMPOWER THE WORLD TO DRIVE SMARTER WE DRIVE TOPLINE WITH NEW PRODUCTS FINANCIAL TARGETS EUR AND STRONGER GO-TO-MARKET • Growing faster than the market BUSINESS AREA AND UNIT ROLES 2 BILLION MID-TERM • NORDICS & VI
Slide 4: Q3: Strong Demand for Nokian Tyres Products
Q3: STRONG DEMAND FOR NOKIAN TYRES PRODUCTS
Slide 5: Q3 Net Sales and Operating Profit Increased Significantly
Q3 NET SALES AND OPERATING PROFIT INCREASED SIGNIFICANTLY • Net sales EUR 443.5 million (349.9), +24.6% with comparable currencies • All-time high third quarter net sales both in Passenger Car Tyres and Heavy Tyres • Strong demand for Nokian Tyres products in all markets • Segments operating profit
Slide 6: Growth Tying Up Working Capital, Q1–Q3 Capex Below 2020 Level
GROWTH TYING UP WORKING CAPITAL, Q1–Q3 CAPEX BELOW 2020 LEVEL 7–9 7–9 CC* 1–9 1–9 CC* EUR million /21 /20 Change Change /21 /20 Change Change 2020 Net sales 443.5 349.9 26.8% 24.6% 1,201.5 900.4 33.4% 34.9% 1,313.8 Segments operating profit 96.9 69.3 236.8 110.1 190.2 Segments operating profit % 21.
Slide 7: Q3: Passenger Car Tyres
Q3: PASSENGER CAR TYRES Strong volume growth led by Russia 7–9 7–9 CC* 1–9 1–9 CC* /21 /20 Change Change /21 /20 Change Change 2020 Net sales, M€ 330.6 254.9 29.7% 27.5% 856.4 609.2 40.6% 43.7% 871.3 Segment operating 97.7 71.8 221.1 111.3 177.8 profit, M€ Segment operating 29.6% 28.2% 25.8% 18.3% 2
Slide 8: Q3: Passenger Car Tyres Bridge
Q3: PASSENGER CAR TYRES BRIDGE Volume impact of EUR 33 million on segment operating profit NET SALES, M€ of which +6.6% Price SEGMENT OPERATING PROFIT, M€ 8
Slide 9: Q3: Heavy Tyres
Q3: HEAVY TYRES All-time high third quarter net sales and operating profit 7–9 7–9 CC* 1–9 1–9 CC* /21 /20 Change Change /21 /20 Change Change 2020 Net sales, M€ 69.0 49.8 38.5% 36.3% 188.7 141.4 33.4% 32.5% 194.6 Segment operating 11.9 7.8 36.2 18.7 23.7 profit, M€ Segment operating 17.3% 15.8% 19.
Slide 10: Q3: Vianor
Q3: VIANOR Good sales performance in all operating countries 7–9 7–9 CC* 1–9 1–9 CC* /21 /20 Change Change /21 /20 Change Change 2020 Net sales, M€ 70.1 67.4 4.1% 2.3% 219.7 202.7 8.4% 5.1% 318.1 Segment operating -4.5 -3.2 -4.3 -6.0 4.0 profit, M€ Segment operating -6.4% -4.8% -1.9% -3.0% 1.3% prof
Slide 11: New Products Drive Sales
NEW PRODUCTS DRIVE SALES Record number of launches in 2020–2021 N O KN I AONK H I AAN K KHAAPKEKL A I IP TTEA L I 1I 0 TTA 10 • Our flagship winter range available for winter season 2021/2022 • An innovative combination of superior winter grip, driving comfort and eco-friendliness • Comprehensive si
Slide 12: Nokian Hakkapeliitta 10 EV
NOKIAN HAKKAPELIITTA 10 EV - Tailored model for EV’s and hybrids Electric vehicles setting new requirements for tires – offering us new opportunities HIGHER HIGHER GRIP SUSTAINABLE LOAD FOR HIGH MATERIALS CAPACITY TORQUE Sustaining higher Handling higher Supporting green vehicle mass torque transiti
Slide 13: Sustainability Is Firmly Rooted in All What We Do
SUSTAINABILITY IS FIRMLY ROOTED IN ALL WHAT WE DO • New non-financial targets for 2021–2025 focus on: • Bringing new environmental and safety innovations to products • Reducing CO₂ emissions in line with the Science Based Targets • Further improving workplace safety • Monitoring the sustainability o
Slide 14: Guidance for 2021 - Unchanged
GUIDANCE FOR 2021 - UNCHANGED In 2021, Nokian Tyres’ net sales with comparable currencies and segments operating profit are expected to grow significantly. The global car and tire demand is expected to pick up, but the COVID-19 pandemic continues to cause uncertainties for the development. 14
Slide 15: Nokian Tyres' Revised Growth Strategy: EUR 2 Billion
NOKIAN TYRES’ REVISED GROWTH STRATEGY: AMBITIOUS LEAP FORWARD PURPOSE EMPOWER THE WORLD TO DRIVE SMARTER WE DRIVE TOPLINE WITH NEW PRODUCTS FINANCIAL TARGETS EUR AND STRONGER GO-TO-MARKET • Growing faster than the market BUSINESS AREA AND UNIT ROLES 2 BILLION MID-TERM • NORDICS & VIANOR: Strengthen
Slide 16: Thank You!
nokianr’ TYRES
Slide 17: Appendix
APPENDIX
Slide 18: Assumptions for 2021
APPENDIX ASSUMPTIONS FOR 2021 • Demand for replacement car tires expected to increase, driven by stronger demand and increasing new car sales • Demand for Nokian Heavy Tyres’ core products estimated to increase • Uncertainties due to COVID-19 pandemic and Russian ruble • Average EUR/RUB: 72.5 in 201
Slide 19: Car and Tire Markets in 1–9/2021
APPENDIX CAR AND TIRE MARKETS IN 1–9/2021 The Nordic countries Russia Europe (excl. the Nordic countries) North America New car sales 19% New car sales 15% New car sales 6% New car sales 13% Car tire sell-in 6% Car tire sell-in 38% Car tire sell-in 13% Car tire sell-in 23% Heavy tire segments* Heavy
Slide 20: Group Segments Operating Profit per Quarter 2017–Q3/2021
APPENDIX GROUP SEGMENTS OPERATING PROFIT PER QUARTER 2017–Q3/2021* CUMULATIVE SEGMENTS OPERATING PROFIT PER REVIEW PERIOD 1–9/2021 • Net sales 1,201.5 M€ (900.4), 33.4% • Segments operating profit 236.8 M€ (110.1) 7–9/2021 SEGMENTS OPERATING PROFIT PER QUARTER • Net sales 443.5 M€ (349.9), 26.8% • S
Slide 21: 1–9/2021: Passenger Car Tyres Bridge
APPENDIX 1–9/2021: PASSENGER CAR TYRES BRIDGE Volume impact of EUR 125 million on segment operating profit NET SALES, M€ SEGMENT OPERATING PROFIT, M€ 21
Slide 22: Passenger Car Tyres Net Sales - Quarterly Changes
APPENDIX PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Sales Volumes Price/Mix Currency 22
Slide 23: Material Cost Development
APPENDIX MATERIAL COST DEVELOPMENT MATERIAL COST DEVELOPMENT INDEX 2010–E2021 MATERIAL COSTS (€/KG) 140 131 131 130 • Increased by 26.6% in Q3/2021 120 114 vs. Q3/2020 110 100 • Increased by 13.2% in Q3/2021 100 96 96 96 92 92 vs. Q2/2021 90 84 83 79 • Increased by 7.9% in 1-9/2021 80 vs. 1-9/2020 7
Slide 24: Net Debt and Debt Maturities
APPENDIX NET DEBT AND DEBT MATURITIES Net Debt Debt Maturities Q3/2021 Q3/2020 Q3/2021 900 900 350 350 800 800 300 300 98 700 700 250 250 600 600 150 EUR million 297 EUR million 200 200 500 500 400 400 150 150 23 300 300 150 151 100 100 200 404 200 10 60 123 50 50 100 100 60 130 37 30 34 0 1 17 3 0
Slide 25: Network Development
APPENDIX NETWORK DEVELOPMENT NAD Vianor, NAD, N-Tyre; +17 stores in 1–9/2021 N-TYRE VIANOR VIANOR – 1,074 SERVICE CENTERS ICELAND IN 17 COUNTRIES 4 USA CANADA 175 own stores and 899 partners 412 24 Own +1, partner -44 vs. year-end 2020 NORWAY SWEDEN FINLAND 129 93 101 • Largest tire chain in the Nor
Slide 26: Disclaimer
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 uncertain