Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q2 2021 Earnings Presentation
24 slides from Nokian Renkaat Oyj's earnings presentation, Aug 3, 2021
Slide 1: Strong Volume and Profit Growth
STRONG VOLUME AND PROFIT GROWTH HALF YEAR FINANCIAL REPORT JANUARY–JUNE 2021 AUGUST 3, 2021 JUKKA MOISIO – CEO TEEMU KANGAS-KÄRKI – CFO
Slide 2: Q2 Net Sales and Operating Profit Increased Significantly
Q2 NET SALES AND OPERATING PROFIT INCREASED SIGNIFICANTLY • Net sales EUR 416.2 million (270.7), +54.8% with comparable currencies • Strong demand continued in all markets • All business units and business areas contributed to the growth • Segments operating profit EUR 89.6 million (24.4) • Driven b
Slide 3: Q2 Cash Flow Positive Despite Increasing Working Capital, Capex Below 2020 Level
Q2 CASH FLOW POSITIVE DESPITE INCREASING WORKING CAPITAL, CAPEX BELOW 2020 LEVEL 4–6 4–6 CC* 1–6 1–6 CC* EUR million /21 /20 Change Change /21 /20 Change Change 2020 Net sales 416.2 270.7 53.7% 54.8% 758.0 550.5 37.7% 41.5% 1,313.8 Segments operating profit 89.6 24.4 139.9 40.8 190.2 Segments operat
Slide 4: Q2: Passenger Car Tyres
Q2: PASSENGER CAR TYRES Strong volume growth led by Russia 4–6 4–6 CC* 1–6 1–6 CC* /21 /20 Change Change /21 /20 Change Change 2020 Net sales, M€ 279.9 163.9 70.8% 74.9% 525.8 354.4 48.4% 55.3% 871.3 Segment operating 70.6 13.6 123.4 39.5 177.8 profit, M€ Segment operating 25.2% 8.3% 23.5% 11.1% 20.
Slide 5: Q2: Passenger Car Tyres Bridge
Q2: PASSENGER CAR TYRES BRIDGE Higher sales volume impacted segment operating profit by EUR 60 million NET SALES, M€ +71% 300 125 -2 287 -7 280 250 200 164 150 76.2% -1.2% -4.2% 0 Q2/2020 Sales Volume Price/MIx Net Sales Currency Q2/2021 excl FX effect SEGMENT OPERATING PROFIT, M€ 5
Slide 6: Q2: Heavy Tyres
Q2: HEAVY TYRES Net sales and segment operating profit continued to grow 4–6 4–6 CC* 1–6 1–6 CC* /21 /20 Change Change /21 /20 Change Change 2020 Net sales, M€ 62.6 40.5 54.8% 52.6% 119.7 91.6 30.7% 30.4% 194.6 Segment operating 11.7 2.6 24.3 10.8 23.7 profit, M€ Segment operating 18.8% 6.4% 20.3% 1
Slide 7: Q2: Vianor
Q2: VIANOR Good sales performance in all operating countries 4–6 4–6 CC* 1–6 1–6 CC* /21 /20 Change Change /21 /20 Change Change 2020 Net sales, M€ 91.5 80.8 13.1% 8.0% 149.6 135.3 10.6% 6.5% 318.1 Segment operating 10.1 9.6 0.2 -2.8 4.0 profit, M€ Segment operating 11.0% 11.8% 0.2% -2.1% 1.3% profi
Slide 8: 2021 We Focus on Growth and Cash Flow
2021 WE FOCUS ON GROWTH AND CASH FLOW
Slide 9: 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 10: 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. 10
Slide 11: New Products Drive Sales
NEW PRODUCTS DRIVE SALES Record number of launches in 2020–2021 NOKIAN HAKKAPELIITTA 10 • Our flagship winter range available to consumers as of fall 2021 • Next-generation safety for passenger cars, SUVs, hybrids and EVs • Superior winter grip • Comfort and reduced noise level • Better on-road stab
Slide 12: We Are Committed to Safe and Sustainable Manufacturing
WE ARE COMMITTED TO SAFE AND SUSTAINABLE MANUFACTURING • Nokian Tyres was included in the Europe’s Climate Leaders 2021 list for significant greenhouse gas emission reductions • The US factory earned ISO 14001 certification in May and LEED v4 Silver certification in March • The Finnish factory earne
Slide 13: Our Priorities for H2 2021
OUR PRIORITIES FOR H2 2021 • 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 • Taking mitigating actions to reduce the impact of cost inflation → With a valued
Slide 14: Capital Markets Day 2021
Capital Markets Day 2021 September 9, 2021 1 p.m. – 4.15 p.m. www.nokiantyres.com/investors 14
Slide 15: Thank You!
nokianr’ TYRES
Slide 16: Appendix
APPENDIX 16
Slide 17: Car and Tire Markets in H1/2021
APPENDIX CAR AND TIRE MARKETS IN H1/2021 The Nordic countries Russia Europe (excl. the Nordic countries) North America New car sales 35% New car sales 37% New car sales 27% New car sales 29% Car tire sell-in 5% Car tire sell-in 40% Car tire sell-in 23% Car tire sell-in 19% Heavy tire segments* Heavy
Slide 18: Group Segments Operating Profit per Quarter 2017–H1/2021
APPENDIX GROUP SEGMENTS OPERATING PROFIT PER QUARTER 2017–H1/2021* 1–6/2021 CUMULATIVE SEGMENTS OPERATING PROFIT PER REVIEW PERIOD 400 350 • Net sales 758.0 M€ 300 (550.5), 37.7% 250 M€ 200 150 • Segments operating profit 100 139.9 M€ (40.8) 50 0 1–3 1–6 1–9 1–12 4–6/2021 SEGMENTS OPERATING PROFIT P
Slide 19: H1: Passenger Car Tyres Bridge
APPENDIX H1: PASSENGER CAR TYRES BRIDGE Volume impact of EUR 95 million on segment operating profit NET SALES, M€ SEGMENT OPERATING PROFIT, M€ 19
Slide 20: Passenger Car Tyres Net Sales - Quarterly Changes
APPENDIX PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Sales Volumes Price/Mix Currency 76,2% 39,5% 5,1% -0,7% -0,3% -0,3% -1,4% -1,0% -1,2% -1,3% -8,4% -22,7% -2,8% -4,2% -5,5% -41,7% -7,6% -9,4% Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2020 2021 2020 2021 20
Slide 21: Material Cost Development
APPENDIX MATERIAL COST DEVELOPMENT MATERIAL COST DEVELOPMENT INDEX 2010–E2021 MATERIAL COSTS (€/KG) 140 131 131 130 • Decreased by 0.1% in Q2/2021 120 114 vs. Q2/2020 110 100 • Increased by 7.6% in Q2/2021 100 96 96 94 92 92 vs. Q1/2021 90 84 83 79 • Decreased by 1.7% in H1/2021 80 vs. H1/2020 70 20
Slide 22: Net Debt and Debt Maturities
APPENDIX NET DEBT AND DEBT MATURITIES Net Debt Debt Maturities Q2/2021 Q2/2020 Q2/2021 700 700 350 350 600 107 600 300 300 500 500 250 250 150 EUR million EUR million 400 269 400 200 200 300 300 150 150 21 152 100 150 100 200 200 45 282 123 50 20 50 100 100 129 45 37 30 29 0 0 1 1 16 1 3 0 0 0 Net N
Slide 23: Network Development
APPENDIX NETWORK DEVELOPMENT NAD Vianor, NAD, N-Tyre; +37 stores in H1/2021 N-TYRE VIANOR VIANOR – 1,094 SERVICE CENTERS ICELAND IN 17 COUNTRIES 4 USA CANADA 174 own stores and 920 partners 415 24 Own unchanged, partner -23 vs. year-end 2020 NORWAY SWEDEN FINLAND 127 94 100 • Largest tire chain in t
Slide 24: 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