Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q3 2020 Earnings Presentation
18 slides from Nokian Renkaat Oyj's earnings presentation, Oct 27, 2020
Slide 1: Good Performance in a Volatile Market Environment
GOOD PERFORMANCE IN A VOLATILE MARKET ENVIRONMENT JANUARY-SEPTEMBER 2020 INTERIM REPORT OCTOBER 27, 2020 JUKKA MOISIO – CEO TEEMU KANGAS-KÄRKI – CFO
Slide 2: Sales Increased in Q3 with Comparable Currencies
SALES INCREASED IN Q3 WITH COMPARABLE CURRENCIES • Net sales EUR 349.9 million (354.5), 3.3% with comparable currencies • Good performance by the team in all business units in a volatile market • Passenger Car Tyres’ growth driven by North America and Central Europe • Some sales shifted from Q2 into
Slide 3: Cash Flow Improved Significantly - Balance Sheet Continues to Be Strong
CASH FLOW IMPROVED SIGNIFICANTLY - BALANCE SHEET CONTINUES TO BE STRONG EUR million 7–9 7–9 Change CC* 1–9 1–9 Change CC* 2019 /20 /19 % Change /20 /19 % Change % % Net sales 349.9 354.5 -1.3% 3.3% 900.4 1,110.6 -18.9% -15.9% 1,585.4 Segments operating profit 69.3 74.9 110.1 230.4 337.2 Segments ope
Slide 4: New Car Sales and Car Tire Sell-in in 1–9/2020
NEW CAR SALES AND CAR TIRE SELL-IN IN 1–9/2020 The Nordic countries Russia Europe (excl. the Nordic countries) North America New car sales -18% New car sales -14% New car sales -30% New car sales -19% Car tire sell-in -12% Car tire sell-in -28% Car tire sell-in -16% Car tire sell-in -15% Heavy tire
Slide 5: Q3: Passenger Car Tyres
Q3: PASSENGER CAR TYRES Improvement in all areas except Russia 7–9 7–9 Change CC* 1–9 1–9 Change CC* 2019 /20 /19 % Change /20 /19 % Change % % Net sales, M€ 254.9 256.7 -0.7% 4.8% 609.2 806.5 -24.5% -21.3% 1,123.8 Segment operating 71.8 75.6 111.3 226.3 308.5 profit, M€ Segment operating 28.2% 29.5
Slide 6: Passenger Car Tyres Net Sales - Quarterly Changes
PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Sales Volumes Price/Mix Currency 5,1% 2,1% 2,1% 1,5% 1,7% 1,9% 0,5% -0,9% -5,0% -6,5% -0,8% -0,8% -0,7% -0,3% -0,3% -1,8% -1,3% -2,8% -22,7% -5,5% -41,7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2019 2020
Slide 7: Q3: Passenger Car Tyres Bridge
Q3: PASSENGER CAR TYRES BRIDGE Positive impact from volume and materials on segment operating profit NET SALES, M€ 280 275 -0,7% 13 -1 269 -14 270 265 260 257 255 255 5,1% -0,3% -5,5% 0 Q3/2019 Sales Volume Price/Mix Net Sales excl Currency Q3/2020 FX effect SEGMENT OPERATING PROFIT, M€ 100 95 11 -9
Slide 8: Q3: Heavy Tyres
Q3: HEAVY TYRES Weaker OE demand impacted net sales 7–9 7–9 Change CC* 1–9 1–9 Change CC* 2019 /20 /19 % Change /20 /19 % Change % % Net sales, M€ 49.8 52.2 -4.5% -2.0% 141.4 148.2 -4.6% -2.8% 202.7 Segment operating 7.8 8.3 18.7 25.6 35.7 profit, M€ Segment operating 15.8% 15.9% 13.2% 17.3% 17.6% p
Slide 9: Q3: Vianor
Q3: VIANOR Good performance in a typically low season 7–9 7–9 Change CC* 1–9 1–9 Change CC* 2019 /20 /19 % Change /20 /19 % Change % % Net sales, M€ 67.4 69.7 -3.3% -1.2% 202.7 216.4 -6.4% -3.1% 336.5 Segment operating -3.2 -3.8 -6.0 -6.4 7.7** profit, M€ Segment operating -4.8% -5.5% -3.0% -3.0% 2.
Slide 10: Our Priorities Are Clear
OUR PRIORITIES ARE CLEAR Sales, cost control and cash flow • Providing customers with world-class products and services • Keeping costs in strict control • Protecting cash flow by cutting back investments, managing working capital, and delaying activities → With a valued brand, strong expertise and
Slide 11: Peace of Mind in All Conditions
PEACE OF MIND IN ALL CONDITIONS
Slide 12: Appendix
APPENDIX 12
Slide 13: Group Operating Profit per Quarter 2016–Q3/2020
APPENDIX GROUP OPERATING PROFIT PER QUARTER 2016–Q3/2020 1–9/2020 CUMULATIVE OPERATING PROFIT PER REVIEW PERIOD 380 330 • Net sales 900.4 M€ 280 (1,110.6), -18.9% 230 M€ 180 130 • Operating profit 48.6 M€ 80 (215.5) 30 -20 1–3 1–6 1–9 1–12 7–9/2020 GROUP OPERATING PROFIT PER QUARTER 150 • Net sales
Slide 14: 1–9/2020: Passenger Car Tyres Bridge
APPENDIX 1–9/2020: PASSENGER CAR TYRES BRIDGE Negative impact of EUR 88 million from volume on segment operating profit NET SALES, M€ 850 -24,5% 807 -177 800 750 700 650 6 635 -26 609 600 -22,0% 0,7% -3,2% 0 1-9/2019 Sales Volume Price/Mix Net Sales excl Currency 1-9/2020 FX effect SEGMENT OPERATING
Slide 15: Material Cost Development
APPENDIX MATERIAL COST DEVELOPMENT Decreased in Q3/2020 MATERIAL COST DEVELOPMENT INDEX 2010–E2020 140 131 131 MATERIAL COSTS 130 (€/KG) 120 114 • Decreased by 18.4% in Q3/2020 110 100 vs. Q3/2019 100 96 92 92 96 90 84 • Decreased by 14.4% in Q3/2020 83 79 80 vs. Q2/2020 70 2010 2011 2012 2013 2014
Slide 16: Net Debt and Debt Maturities
APPENDIX NET DEBT AND DEBT MATURITIES Net Debt Debt Maturities Q3/2020 Q3/2019 Q3/2020 900 900 450 450 800 800 400 400 24 98 700 700 350 350 100 600 600 300 300 EUR million 297 EUR million 500 500 250 250 118 400 400 200 7 200 300 300 150 150 276 10 261 200 200 404 200 100 197 100 50 122 50 100 100
Slide 17: Network Development Progressed
APPENDIX NETWORK DEVELOPMENT PROGRESSED NAD Vianor, NAD, N-Tyre; -15 stores in 1–9/2020 N-TYRE VIANOR VIANOR – 1,115 SERVICE CENTERS ICELAND IN 17 COUNTRIES 4 175 own stores and 940 partners USA 290 Own -14, partner -41 vs. year-end 2019 NORWAY SWEDEN FINLAND 133 96 104 • Largest tire chain in the N
Slide 18: It's a Beautiful Journey - Disclaimer
IT’S A BEAUTIFUL JOURNEY 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 in