Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q4 2024 Earnings Presentation
27 slides from Nokian Renkaat Oyj's earnings presentation, Feb 4, 2025
Slide 1: Solid growth driven by Central Europe in 2024, North America challenging
SOLID GROWTH DRIVEN BY CENTRAL EUROPE IN 2024, NORTH AMERICA CHALLENGING CAUSING A SOFT Q4, ROMANIAN FACTORY GETTING READY FOR TIRE DELIVERIES FINANCIAL STATEMENT RELEASE 2024 PAOLO POMPEI, CEO NIKO HAAVISTO, CFO FEBRUARY 4, 2025
Slide 2: Nokian Tyres at a glance
NOKIAN TYRES AT A GLANCE NOKIAN TYRES DEVELOPS AND MANUFACTURES 2024 N E T S A L E S 1) B Y BUSINESS UNIT, % PREMIUM TIRES FOR PEOPLE WHO VALUE SAFETY, NET SALES SUSTAINABILITY, AND PREDICTABILITY 1,290 Vianor • #1 in premium tires in the Nordic countries EUR MILLION 28% • Growth markets: North Amer
Slide 3: Important milestones reached in 2024
IMPORTANT MILESTONES REACHED IN 2024 • Strong performance by the Nokian Tyres team in the challenging market • New products and steadily improving volume delivery • Good progress with the strategic investments to add capacity • Opening of the world’s first zero CO2 emission tire factory in Romania •
Slide 4: Solid growth in 2024
SOLID GROWTH IN 2024 • Net sales EUR 1,289.8 million (1,173.6), +10.6% with comparable currencies • Improved passenger car tire availability • Growth driven by Central Europe and the Nordics • Segments EBITDA EUR 185.2 million (170.5) • 14.4% (14.5%) of net sales • Segments operating profit EUR 71.4
Slide 5: Net sales increased in Q4
NET SALES INCREASED IN Q4 • Net sales EUR 415.0 million (368.0), +13.1% with comparable currencies • Growth driven by Central Europe • Segments EBITDA EUR 67.1 million (71.9) • 16.2% (19.5%) of net sales • Segments operating profit EUR 35.9 million (44.5) • 8.7% (12.1%) of net sales • Decline due to
Slide 6: Key figures
KEY FIGURES Investment phase approaching its end EUR million 10–12/2024 10–12/2023 2024 2023 Net sales 415.0 368.0 1,289.8 1,173.6 Segments EBITDA 67.1 71.9 185.2 170.5 Segments EBITDA, % 16.2% 19.5% 14.4% 14.5% Segments operating profit 35.9 44.5 71.4 65.1 Segments operating profit, % 8.7% 12.1% 5.
Slide 7: Q4: Passenger Car Tyres
Q4: PASSENGER CAR TYRES Sales increased significantly, profitability declined • With comparable currencies, net sales increased by 20.7% • Growth driven by Central Europe • Profitability declined due to lower Average Sales Price mainly related to mix, and higher operating expenses EUR million 10–12/
Slide 8: Q4: Passenger Car Tyres bridge
Q4: PASSENGER CAR TYRES BRIDGE 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 Volume Price / Mix Currency 9
Slide 10: Q4: Heavy Tyres
Q4: HEAVY TYRES Solid quarter in a weak market • Net sales were at previous year’s level • Segment operating profit percentage improved to 13.8% • Weak OE market was compensated by strong aftermarket sales EUR million 10–12/2024 10–12/2023 2024 2023 Net sales 61.8 61.8 235.1 257.1 Net sales change i
Slide 11: Q4: Vianor
Q4: VIANOR Good sales performance, profitability declined • With comparable currencies, net sales increased by 6.7% • Segment operating profit negatively impacted by increased costs due to inflation, and a weak B2B market • Actions taken to adapt operations to the market and demand situation and to
Slide 12: Guidance for 2025
GUIDANCE FOR 2025 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. Development of glo
Slide 13: Innovative premium products and a strong brand drive our future growth
INNOVATIVE PREMIUM PRODUCTS AND A STRONG BRAND DRIVE OUR FUTURE GROWTH PREMIUM S U PE R I O R F U T U RE BRAND P R O D U C TS I N N O V A TI O N S As a forerunner in the Our constantly renewing We have a strong premium tire segment, the range of safe, sustainably innovation pipeline for the Nokian T
Slide 14: Our product portfolio is renewing and expanding
OUR PRODUCT PORTFOLIO IS RENEWING AND EXPANDING Examples of the latest products Nokian Tyres Seasonproof 1 Nokian Tyres Remedy WRG5 Nokian Tyres Soil King VF all-season tire all-weather tire tire for high-power tractors 14
Slide 15: Balanced and scalable manufacturing network for passenger car tires
WE ARE CREATING A BALANCED AND SCALABLE MANUFACTURING NETWORK FOR PASSENGER CAR TIRES US FINLAND ROMANIA VIRTUAL DAYTON NOKIA ORADEA FACTORY ~25% ~35% ~40% A network of manufacturing partners supporting own production. of total own production of total own production of total own production Target ca
Slide 16: Romanian factory is getting ready for tire deliveries
ROMANIAN FACTORY IS GETTING READY FOR TIRE DELIVERIES Already ~300 employees working on-site 16
Slide 17: We are making progress in sustainability
WE ARE MAKING PROGRESS IN SUSTAINABILITY Examples of achievements in 2024 • Platinum Medal in EcoVadis sustainability assessment, placing us in the top 1% of companies assessed • New GHG reduction targets approved by Science Based Targets initiative – targets align with the climate science to limit
Slide 18: Changes in Nokian Tyres operating model and leadership
CHANGES IN NOKIAN TYRES OPERATING MODEL AND LEADERSHIP To increase our consumer focus, • While maintaining our leading position in the Nordics, Nokian Tyres’ strategic growth markets are Central global synergies and operational Europe and North America. excellence, we are reorganizing • The new Mana
Slide 19: Nokian Tyres organization
NOKIAN TYRES ORGANIZATION Customers and consumers Local sales PCT PCT PCT organizations Nordics North Central Heavy Tyres Vianor America Europe Global functions President and CEO Nokian Tyres Board of Directors 19
Slide 20: Key priorities for 2025
KEY PRIORITIES FOR 2025 • Drive growth through new products and a strong focus on generating value for consumers • Ramp-up production in the Romanian factory • Leverage our advanced manufacturing technologies and innovation capabilities • Improve productivity and cost efficiency 20 20
Slide 21: Nokian Tyres purpose
NOKIAN TYRES PURPOSE MAKE THE WORLD SAFER BY REINVENTING TIRES, AND HOW THEY ARE MADE, OVER AND OVER AGAIN.
Slide 22: Appendix
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Slide 23: Group segments operating profit per quarter 2020–2024
GROUP SEGMENTS OPERATING PROFIT APPENDIX PER QUARTER 2020–2024 SEGMENTS OPERATING PROFIT PER QUARTER 10–12/2024 • Net sales EUR 415.0 million (368.0), increased by 12.8% • Segments operating profit EUR 35.9 million (44.5) 2024 • Net sales EUR 1,289.8 million (1,173.6), increased by 9.9% • Segments o
Slide 24: 2024: Passenger Car Tyres bridge
2024: PASSENGER CAR TYRES BRIDGE APPENDIX Volume impacted segment operating profit positively by EUR 65 million NET SALES, EUR million SEGMENT OPERATING PROFIT, EUR million 24
Slide 25: Building diversified debt portfolio
APPENDIX BUILDING DIVERSIFIED DEBT PORTFOLIO • EUR 100 million sustainability-linked term loan was refinanced in May 2024 with a similar three-year term loan that includes extension options of up to two years • EUR 300 million long-term bilateral sustainability-linked DEBT credit facilities original
Slide 26: Net debt and debt maturities
NET DEBT AND DEBT MATURITIES APPENDIX Available liquidity, Q4/2024 Q4/2023 EUR million Cash 176 415 Committed undrawn credit facilities 304 330 Total 481 745 26
Slide 27: 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