Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q2 2025 Earnings Presentation
29 slides from Nokian Renkaat Oyj's earnings presentation, Jul 18, 2025
Slide 1: Strong operating profit improvement in the second quarter
STRONG OPERATING PROFIT IMPROVEMENT IN THE SECOND QUARTER. ACTIONS ONGOING TO FURTHER STRENGTHEN FINANCIAL PERFORMANCE HALF YEAR FINANCIAL REPORT JANUARY–JUNE 2025 PAOLO POMPEI, PRESIDENT & CEO JARI HUUHTANEN, INTERIM CFO JULY 18, 2025
Slide 2: Agenda
AGENDA 1 Financial performance in Q2 2 Business units 3 Assumptions and guidance 2
Slide 3: Q2 Financial Performance
Q2 FINANCIAL PERFORMANCE nokicin’ TYRES
Slide 4: Highlights of Q2/2025
HIGHLIGHTS OF Q2/2025 • Sales growth continued. We outperformed the market in all regions. • Operating profit improved significantly. Successful execution of commercial and operational efforts. • Actions ongoing to improve financial performance. • Ramp-up of operations in Romania proceeding accordin
Slide 5: Net sales and operating profit improved in Q2
NET SALES AND OPERATING PROFIT IMPROVED IN Q2 • Net sales EUR 343.7 million (324.6), +6.9% with comparable currencies • Positive development in all business units • Market position improved in all regions • Segments EBITDA EUR 57.2 million (46.8) • 16.7% (14.4%) of net sales • Segments operating pro
Slide 6: Net sales continued to grow in all regions in the second quarter
NET SALES CONTINUED TO GR0W IN ALL REGIONS IN THE SECOND QUARTER NET SALES BY GEOGRAPHICAL AREA, EUR million +4% 200 180 160 140 120 +13% 100 +7% 80 60 40 20 174,8 183,3 70,6 75,7 77,1 82,2 0 Nordics Other Europe Americas Q2 2024 Q2 2025 6
Slide 7: Cash flow improved, capex below 2024
CASH FLOW IMPROVED, CAPEX BELOW 2024 EUR million 4–6/2025 4–6/2024 1–6/2025 1–6/2024 2024 Net sales 343.7 324.6 613.2 561.2 1,289.8 Segments EBITDA 57.2 46.8 69.7 59.3 185.2 Segments EBITDA, % 16.7% 14.4% 11.4% 10.6% 14.4% Segments operating profit 26.3 20.1 7.8 5.0 71.4 Segments operating profit, %
Slide 8: Significant investments in 2023–2025 to build our future platform
SIGNIFICANT INVESTMENTS IN 2023 –2025 TO BUILD OUR FUTURE PLATFORM Investment phase approaching its end • Net investments in 2025 estimated to be EUR 200 million • Total investments in 2023–2025 approx. EUR 800 million • Returning to average capex of approx. EUR 120 million • Romanian state aid appr
Slide 9: We continue to focus on improving our financial performance
WE CONTINUE TO FOCUS ON IMPROVING OUR FINANCIAL PERFORMANCE – ACTIONS ONGOING IN SEVERAL AREAS COMMERCIAL OPERATIONS North America: • Reduce fixed costs through scaling • Accelerate commercial efforts to gain • Drive efficiency improvements across premium market share sites • Strengthen partnership
Slide 10: New way of working enables stronger and faster execution to deliver results
NEW WAY OF WORKING ENABLES STRONGER AND FASTER EXECUTION TO DELIVER RESULTS New operating model Dedicated Agile decision making implemented with workstreams, and governance stronger P&L and KPI systematic follow-up, enabling quick ownership and and clear reporting adjustments accountability practice
Slide 11: Nokian Tyres among the most sustainable companies by TIME magazine
NOKIAN TYRES AMONG THE MOST SUSTAINABLE COMPANIES BY TIME MAGAZINE A proof of our continuous work toward a more sustainable future • Nokian Tyres ranked 98th on the list of the world’s 500 most sustainable ESG rating Nokian Tyres score companies by TIME magazine CDP Climate A-; Water security B • As
Slide 12: Business Units
12 BUSINESS UNITS nokicin’ TYRES
Slide 13: Q2: Passenger Car Tyres
Q2: PASSENGER CAR TYRES Higher sales, improved margins 4−6/ 4−6/ 1−6/ 1−6/ EUR million 2025 2024 2025 2024 2024 • Net sales increased by 11.3% Net sales 206.2 188.8 380.4 331.9 779.9 • ASP with comparable currencies improved Net sales change in 11.3% 24.3% 16.0% 17.0% 20.2% • Share of >18” tires inc
Slide 14: Q2: Passenger Car Tyres Bridge
Q2: PASSENGER CAR TYRES BRIDGE Price/mix impacted segment operating profit positively by EUR 9 million NET SALES, EUR million 215 +9% 9 210 -4 210 206 205 12 200 195 190 189 +6,4% +4,9% -2,1% 0 4-6/2024 Sales Volume Price/Mix Net Sales excl Currency 4-6/2025 FX effect SEGMENT OPERATING PROFIT, EUR m
Slide 15: Passenger Car Tyres Net Sales - Quarterly Changes
PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Sales Volumes Price / Mix Currency 35,4% 28,6% 4,9% 21,9% 21,7% 9,7% 2,4% 6,4% 0,5% -1,0% -1,3% -0,6% -1,1% -0,4% -0,5% -2,1% -7,9% Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 -10,5% Q1 Q2 Q3 Q4 Q1 Q2 2024 2025 2024 2025 2024 2025 15
Slide 16: Q2: Heavy Tyres
Q2: HEAVY TYRES Solid sales development, weak market affected margins 4−6/ 4−6/ 1−6/ 1−6/ EUR million 2025 2024 2025 2024 2024 • Net sales increased in all regions driven by Net sales 60.8 60.2 116.6 115.3 235.1 aftermarket sales Net sales change in 1.3% -10.3% 1.3% -14.4% -8.0% comparable currencie
Slide 17: Q2: Vianor
Q2: VIANOR Stable sales development 4−6/ 4−6/ 1−6/ 1−6/ EUR million 2025 2024 2025 2024 2024 • Net sales with comparable currencies Net sales 97.7 95.5 156.5 151.4 354.9 increased by 1.2% Net sales change in 1.2% 1.3% 2.9% 1.7% 3.6% comparable currencies, % • Segment operating profit was EUR 7.1 mil
Slide 18: Assumptions and Guidance
18 ASSUMPTIONS AND GUIDANCE nokicin’ TYRES
Slide 19: Tire industry assumptions for 2025
TIRE INDUSTRY ASSUMPTIONS FOR 2025 PASSENGER CAR & HEAVY TIRES LIGHT TRUCK TIRES RT -2% to 2% OE demand declining in H1, market expected to continue Growth in Central Europe, Nordics challenging in H2 stable, volatility in North America RT demand remains weak Market data based on sell-in data provid
Slide 20: Tariffs disrupt North American market
TARIFFS DISRUPT NORTH AMERICAN MARKET Direct impacts: • 25% import tariff for PC/LT tires since May 3, market price levels starting to adapt to tariff costs, but not fully visible yet • Increased raw material sourcing costs for domestic US manufacturing • Canadien counter-tariffs impacting imports t
Slide 21: Guidance for 2025
GUIDANCE FOR 2025 (unchanged) In 2025, Nokian Tyres’ net sales are expected to grow and segments operating profit as a percentage of net sales to improve compared to the previous year. Assumptions Tire demand in Nokian Tyres’ markets is expected to remain at the previous year’s level in 2025. Develo
Slide 22: Changes in Nokian Tyres management team
CHANGES IN NOKIAN TYRES MANAGEMENT TEAM EFFECTIVE AS OF SEPTEMBER 1, 2025 To reflect our sharpened commercial focus and commitment to strategic growth we are announcing several key leadership changes. • Christopher Ostrander is appointed SVP, Passenger Car Tyres, North America and a member of the No
Slide 23: Nokian Tyres
nokia’ TYRES
Slide 24: Appendix
APPENDIX 24
Slide 25: H1: Passenger Car Tyres Bridge
H1: PASSENGER CAR TYRES BRIDGE Volume impacted segment operating profit positively by EUR 17 million NET SALES, EUR million +15% 390 9 385 -5 380 380 44 370 360 350 340 332 330 +13,4% +2,6% -1,4% 0 1-6/2024 Sales Volume Price/Mix Net Sales excl Currency 1-6/2025 FX effect SEGMENT OPERATING PROFIT, E
Slide 26: Group segments operating profit per quarter
GROUP SEGMENTS OPERATING PROFIT APPENDIX PER QUARTER 2021–H1/2025 4–6/2025 SEGMENTS OPERATING PROFIT PER QUARTER 150 • Net sales EUR 343.7 million 100 (324.6), 5.9% 50 • Segments operating profit 0 EUR 26.3 million (20.1) Q1 Q2 Q3 Q4 -50 1–6/2025 2021 2022 2023 2024 2025 • Net sales EUR 613.2 millio
Slide 27: Debt portfolio as of June 30, 2025
APPENDIX DEBT PORTFOLIO AS OF JUNE 30, 2025 DEBT COMPOSITION AS OF JUNE 30, 2025 • EUR 300 million long-term bilateral sustainability-linked credit facilities originally due in 2026 extended to be due in 2027 Loans from financial institutions and pension DEBT loans • EUR 100 million long-term bilate
Slide 28: Net debt and debt maturities
NET DEBT AND DEBT MATURITIES APPENDIX Net Debt Debt Maturities Q2/2025 Q2/2024 Q2/2025 1000 1000 500 500 900 123 900 450 450 40 800 800 400 100 400 268 133 700 700 350 350 21 160 EUR million 600 600 300 300 EUR million 500 234 500 250 250 24 14 400 400 200 200 324 99 300 598 300 150 150 169 200 409
Slide 29: 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