Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q1 2024 Earnings Presentation
20 slides from Nokian Renkaat Oyj's earnings presentation, Apr 29, 2025
Slide 1: Building the New Nokian Tyres on Track in a Challenging Environment
BUILDING THE NEW NOKIAN TYRES ON TRACK IN A CHALLENGING ENVIRONMENT INTERIM REPORT JANUARY–MARCH 2024 JUKKA MOISIO, CEO NIKO HAAVISTO, CFO APRIL 29, 2024
Slide 2: Important Milestones Will Be Reached in 2024
IMPORTAN T MILESTO N E S W ILL BE REACH ED IN 2024 • We celebrate the 90th anniversary of our innovation, the winter tire • Our new and the world’s first zero CO2 emission tire factory in Romania will start production • US investment phase will be completed • New innovative products will be launched
Slide 3: Romanian Factory Project Is Progressing in Schedule and Budget
ROMANIAN FACTORY PROJECT IS PROGRESSING IN SCHEDULE AND BUDGET PRODUCTION BULDING • Finishing work on the building • Equipment installations progressing F I N I S H ED G O O D S WAREHOUSE • Paving of loading docks and outdoor area underway MIXING BUILDING • Floor casting in progress • Equipment inst
Slide 4: Steps Forward in Sustainability
STEPS FORWARD IN SUSTAINABILITY Examples of achievements in Q1 2024 • Construction at the world’s first zero CO2 emission tire factory in Romania ongoing • A- score from CDP for actions aimed at reducing greenhouse gas emissions and mitigating climate change-related risks • A long-term purchase agre
Slide 5: Net Sales and Operating Profit at Previous Year Level in Q1
NET SALES AND OPERATING PROFIT AT PREVIOUS YEAR LEVEL IN Q1 • Net sales EUR 236.6 million (236.4) • Segments EBITDA EUR 12.5 million (11.2) • EBITDA impact of the political strikes and the Red Sea crisis is approximately EUR 20 million, more than half of which in Q1 • Segments operating profit EUR -
Slide 6: Strong Balance Sheet
STRONG BALANCE SHEET EUR million 1–3/2024 1–3/2023 2023 Net sales 236.6 236.4 1,173.6 Segments EBITDA 12.5 11.2 170.5 Segments EBITDA, % 5.3% 4.7% 14.5% Segments operating profit -15.1 -14.1 65.1 Segments operating profit, % -6.4% -6.0% 5.5% Segments ROCE, % (rolling 12 months) 4.0% -1.4% 4.0% Equit
Slide 7: Q1: Passenger Car Tyres
Q1: PASSENGER CAR TYRES Higher sales, improved profitability • Net sales increased due to higher sales volumes driven by increased product availability • ASP with comparable currencies at previous year’s level • Profitability improved driven by higher volumes and lower costs EUR million 1–3/2024 1–3
Slide 8: Q1: Passenger Car Tyres Bridge
Q1: PASSENGER CAR TYRES BRIDGE Materials impacted segment operating profit positively by EUR 8 million NET SALES, EUR million SEGMENT OPERATING PROFIT, EUR million 8
Slide 9: Passenger Car Tyres Net Sales - Quarterly Changes
PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Sales Volumes Price / Mix Currency
Slide 10: Q1: Heavy Tyres
Q1: HEAVY TYRES Weak market affected sales and profitability • Net sales decreased due to weak market • Profitability decreased mainly due to lower volumes EUR million 1–3/2024 1–3/2023 2023 Net sales 55.1 68.2 257.1 Net sales change in -18.5% 6.4% -3.4% comparable currencies, % Segment operating pr
Slide 11: Q1: Vianor
Q1: VIANOR Summer tire season starting • Net sales with comparable currencies increased • The first quarter is seasonally low in Vianor, therefore negative in profitability EUR million 1–3/2024 1–3/2023 2023 Net sales 55.9 55.5 344.0 Net sales change in 2.3% 2.7% 1.8% comparable currencies, % Segmen
Slide 12: Back to Growth in 2024
BACK TO GROWTH IN 2024
Slide 13: 2024 Guidance (Unchanged) and Assumptions
2024 GUIDANCE (UNCHANGED) AND ASSUMPTIONS In 2024, Nokian Tyres’ net sales with • Sell-in in the replacement tire market is comparable currencies and segments expected to grow in 2024. However, weak operating profit are expected to grow economic development in Nokian Tyres’ main significantly compar
Slide 14: Innovative and Competitive Product Portfolio Is the Foundation for Our Growth
INNOVATIVE AND COMPETITIVE PRODUCT PORTFOLIO IS THE FOUNDATION FOR OUR GROWTH Examples of the latest product launches Nokian Tyres Snowproof 1 Nokian Tyres Hakkapeliitta R5 Nokian Tyres Snowproof 2 Nokian Tyres Nokian Tyres Hakkapeliitta R5 SUV Nokian Tyres Snowproof 2 SUV Nokian Tyres Powerproof 1
Slide 15: This Is Our Journey Towards EUR 2 Billion Net Sales and Strong Profits
THIS IS OUR JOURNEY TOWARDS EUR 2 BILLION NET SALES AND STRONG PROFITS GROWTH PHASE 2 0 2 6 –2 0 2 7 INVESTMENT PHASE Increasing market penetration built 2 0 2 3 –2 0 2 5 on: • New products NET SALES • Capacity increase in Finland • Increased capacity EUR • Enhanced operational capabilities • US fac
Slide 16: Appendix
APPENDIX
Slide 17: Group Segments Operating Profit per Quarter 2020–2024
GROUP SEGMENTS OPERATING PROFIT APPENDIX PER QUARTER 2020–2024 1–3/2024 • Net sales EUR 236.6 million (236.4), 0.1% • Segments operating profit EUR -15.1 million (-14.1) 17
Slide 18: Building Diversified Debt Portfolio
BUILDING DIVERSIFIED DEBT PORTFOLIO APPENDIX • EUR 100 million sustainability-linked term loan due in May 2024 refinanced with a similar three- year term loan that includes extension options of up to two years • EUR 300 million long-term bilateral sustainability-linked credit facilities originally d
Slide 19: Net Debt and Debt Maturities
NET DEBT AND DEBT MATURITIES APPENDIX Available liquidity, EUR million Q1/2024 Q1/2023 Cash 283 357 Committed undrawn credit facilities 330 305 Total 613 662 * The EUR 100 million bilateral term loan due in May 2024 is refinanced and will be replaced in May by a similar three-year term loan that inc
Slide 20: 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