Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q1 2021 Earnings Presentation
20 slides from Nokian Renkaat Oyj's earnings presentation, May 4, 2021
Slide 1: Strong Volume Growth in All Markets, Demand Recovering
STRONG VOLUME GROWTH IN ALL MARKETS, DEMAND RECOVERING INTERIM REPORT JANUARY–MARCH 2021 MAY 4, 2021 JUKKA MOISIO – CEO TEEMU KANGAS-KÄRKI – CFO
Slide 2: Net Sales and Operating Profit Increased Significantly
NET SALES AND OPERATING PROFIT INCREASED SIGNIFICANTLY • Net sales EUR 341.8 million (279.8), +28.5% with comparable currencies • All-time high first quarter volume both in Passenger Car Tyres and Heavy Tyres • Demand recovering in all markets • Heavy Tyres reached an all-time high quarterly net sal
Slide 3: Cash Flow Improved, Capex Below 2020
CASH FLOW IMPROVED, CAPEX BELOW 2020 Balance sheet continues to be strong CC* EUR million 1–3/21 1–3/20 Change Change 2020 Net sales 341.8 279.8 22.1% 28.5% 1,313.8 Segments operating profit 50.3 16.3 190.2 Segments operating profit % 14.7% 5.8% 14.5% Segments EPS, EUR 0.29 0.09 1.04 Segments ROCE,
Slide 4: Q1/2021: Passenger Car Tyres
Q1/2021: PASSENGER CAR TYRES Strong volume growth led by Russia CC* 1–3/21 1–3/20 Change Change 2020 Net sales, M€ 245.9 190.5 29.1% 38.5% 871.3 Segment operating profit, M€ 52.8 25.8 177.8 Segment operating profit, % 21.5% 13.5% 20.4% * Comparable currencies • Net sales increased in all main market
Slide 5: Passenger Car Tyres Net Sales - Quarterly Changes
PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Sales volumes Price / Mix Currency 5
Slide 6: Q1/2021: Passenger Car Tyres Bridge
Q1/2021: PASSENGER CAR TYRES BRIDGE Volume impact of EUR 35 million on segment operating profit NET SALES, M€ SEGMENT OPERATING PROFIT, M€ 6
Slide 7: Q1/2021: Heavy Tyres
Q1/2021: HEAVY TYRES Net sales and segment operating profit at all -time high CC* 1–3/21 1–3/20 Change Change 2020 Net sales, M€ 57.1 51.2 11.6% 13.0% 194.6 Segment operating profit, M€ 12.6 8.2 23.7 Segment operating profit, % 22.0% 16.1% 12.2% * Comparable currencies • Net sales increased by 13.0%
Slide 8: Q1/2021: Vianor
Q1/2021: VIANOR Good performance in a seasonally low quarter CC* 1–3/21 1–3/20 Change Change 2020 Net sales, M€ 58.1 54.4 6.8% 4.2% 318.1 Segment operating profit, M€ -9.8 -12.4 4.0 Segment operating profit, % -16.9% -22.8% 1.3% Number of own service centers 173 186 174 at period end * Comparable cu
Slide 9: 2021 We Focus on Growth and Cash Flow
2021 WE FOCUS ON GROWTH AND CASH FLOW
Slide 10: Our Priorities for the Coming Quarters
OUR PRIORITIES FOR THE COMING QUARTERS Growth and cash flow • Driving growth through new product launches and continuous improvements in go-to-market activities • Protecting cash flow by prioritizing investments, capex expected to be lower than 2020 → With a valued brand, strong expertise and enhanc
Slide 11: Assumptions for 2021
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 2019, 82.7 i
Slide 12: 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. 12
Slide 13: Thank You!
nokian’ TYRES
Slide 14: Appendix
APPENDIX 14
Slide 15: Car and Tire Markets in Q1/2021
APPENDIX CAR AND TIRE MARKETS IN Q1/2021 The Nordic countries Russia Europe (excl. the Nordic countries) North America New car sales +21% New car sales -3% New car sales 0% New car sales +12% Car tire sell-in -2% Car tire sell-in +23% Car tire sell-in +12% Car tire sell-in +14% Heavy tire segments*
Slide 16: Group Segments Operating Profit per Quarter 2017–Q1/2021
APPENDIX GROUP SEGMENTS OPERATING PROFIT PER QUARTER 2017–Q1/2021* Q1/2021 CUMULATIVE SEGMENTS OPERATING PROFIT PER REVIEW PERIOD 400 350 • Net sales 341.8 M€ 300 (279.8), 22.1% 250 M€ 200 150 • Segments operating profit 100 50.3 M€ (16.3) 50 0 1–3 1–6 1–9 1–12 SEGMENTS OPERATING PROFIT PER QUARTER
Slide 17: Material Cost Development
APPENDIX MATERIAL COST DEVELOPMENT Increased in Q1/2021 MATERIAL COST DEVELOPMENT INDEX 2010–E2021 140 131 131 MATERIAL COSTS 130 (€/KG) 120 114 • Increased by 0.8% in Q1/2021 110 100 vs. 2020 100 96 92 92 96 92 90 84 • Decreased by 4.5% in Q1/2021 83 79 80 vs. Q1/2020 70 2010 2011 2012 2013 2014 20
Slide 18: Net Debt and Debt Maturities
APPENDIX NET DEBT AND DEBT MATURITIES 18
Slide 19: Network Development
APPENDIX NETWORK DEVELOPMENT NAD Vianor, NAD, N-Tyre; +54 stores in Q1/2021 N-TYRE VIANOR VIANOR – 1,098 SERVICE CENTERS ICELAND IN 17 COUNTRIES 4 173 own stores and 925 partners USA 392 Own -1, partner -18 vs. year-end 2020 NORWAY SWEDEN FINLAND 127 95 102 • Largest tire chain in the Nordic countri
Slide 20: 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