Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q3 2024 Earnings Presentation
21 slides from Nokian Renkaat Oyj's earnings presentation, Oct 29, 2024
Slide 1: Market Share Gains Driving Sales Growth in a Weak Market
MARKET SHARE GAINS DRIVING SALES GROWTH IN A WEAK MARKET, ROMANIAN FACTORY PROGRESSING ON SCHEDULE INTERIM REPORT JANUARY–SEPTEMBER 2024 JUKKA MOISIO, CEO NIKO HAAVISTO, CFO OCTOBER 29, 2024
Slide 2: Q3 Net Sales and Segments Operating Profit Increased
Q3 NET SALES AND SEGMENTS OPERATING PROFIT INCREASED • Net sales EUR 313.6 million (276.1), +14.4% with comparable currencies • Market share gains driven by improved passenger car tire availability • Geographically strongest growth in Central Europe and the Nordics • Segments EBITDA EUR 58.8 million
Slide 3: Key Figures
KEY FIGURES Investment phase approaching its end, net debt peaking 2024 EUR million 7–9/2024 7–9/2023 1–9/2024 1–9/2023 2023 Net sales 313.6 276.1 874.8 805.6 1,173.6 Segments EBITDA 58.8 46.1 118.1 98.6 170.5 Segments EBITDA, % 18.8% 16.7% 13.5% 12.2% 14.5% Segments operating profit 30.4 19.6 35.4
Slide 4: Q3: Passenger Car Tyres
Q3: PASSENGER CAR TYRES Higher sales, improved profitability • Net sales increased driven by Central Europe • ASP with comparable currencies decreased • Profitability improved due to higher volumes and lower material costs • Q3 exclusions included inventory write-downs of contract manufacturing prod
Slide 5: Q3: Passenger Car Tyres Bridge
Q3: PASSENGER CAR TYRES BRIDGE Volume impacted segment operating profit positively by EUR 26 million NET SALES, EUR million SEGMENT OPERATING PROFIT, EUR million 5
Slide 6: Passenger Car Tyres Net Sales - Quarterly Changes
PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % Sales Volume Price / Mix Currency * Price/mix without impact from contract- 6 manufactured Central European summer tires
Slide 7: Q3: Heavy Tyres
Q3: HEAVY TYRES Weak market affected sales • Net sales decreased due to weak OEM market • Profitability remained at the previous year’s level • Production temporarily adapted during the summer break to meet the soft demand EUR million 7–9/2024 7–9/2023 1–9/2024 1–9/2023 2023 Net sales 57.9 59.7 173.
Slide 8: Q3: Vianor
Q3: VIANOR Solid sales performance, profitability declined • Net sales increased • Segment operating profit negatively impacted by increased costs due to inflation, and weak B2B market EUR million 7–9/2024 7–9/2023 1–9/2024 1–9/2023 2023 Net sales 69.4 68.1 220.8 218.0 344.0 Net sales change in 2.4%
Slide 9: Guidance for 2024
GUIDANCE FOR 2 02 4 (unchanged) In 2024, Nokian Tyres’ net sales with comparable currencies and segments operating profit are expected to grow significantly compared to the previous year. 9
Slide 10: Romanian Factory Progressing in Budget and on Schedule
ROMANIAN FACTORY P RO GRES S I N G I N BU D GET A N D O N S CH ED U LE • The first tire was manufactured in July, grand opening celebrated in September • Production beginning with the manufacture of Central European winter and all-season tires • In July, a EUR 150 million loan agreement signed with
Slide 11: Factory Site in October 2024
FACTORY SITE IN OCTOBER 2024 Total built-up area ~100,000 m2 Finished goods warehouse Mixing building Production building 11
Slide 12: Romanian Factory Sets the Benchmark in Sustainability for the Industry
ROMANIAN FACTORY SETS THE BENCHMARK IN SUSTAINABILITY FOR THE INDUSTRY 1 CO2 EMISSION FREE All electricity used at the factory is CO2 emission free. Part of the electricity used in the factory is generated by on-site solar power units. 2 INNOVATIVE & ELECTRIC Steam used to cure the tires is generate
Slide 13: Prepared for the Winter Season
PREPARED FOR THE WINTER SEASON • Celebrating 90th anniversary of our innovation, the winter tire - pioneering safe winter driving continues • Competitive product portfolio supporting winter tire sales in the Nordic countries, North America and Central Europe • Our flagship winter tires in podium pla
Slide 14: Paolo Pompei Appointed the President and CEO of Nokian Tyres Plc
JULY 20, 2024 PAOLO POMPEI APPOINTED THE PRESIDENT AND CEO OF NOKIAN TYRES PLC AS OF JANUARY 1, 2025 14
Slide 15: Nokian Tyres Purpose
NOKIAN TYRES PURPOSE MAKE THE WORLD SAFER BY REINVENTING TIRES, AND HOW THEY ARE MADE, OVER AND OVER AGAIN.
Slide 16: Appendix
APPENDIX
Slide 17: Group Segments Operating Profit per Quarter 2020–Q3/2024
GROUP SEGMENTS OPERATING PROFIT APPENDIX PER QUARTER 2020–Q3/2024 7–9/2024 • Net sales EUR 313.6 million (276.1), increased by 13.6% • Segments operating profit EUR 30.4 million (19.6) 1–9/2024 • Net sales EUR 874.8 million (805.6), increased by 8.6% • Segments operating profit EUR 35.4 million (20.
Slide 18: 1–9: Passenger Car Tyres Bridge
1–9: PASSENGER CAR TYRES BRIDGE APPENDIX Volume impacted segment operating profit positively by EUR 44 million NET SALES, EUR million SEGMENT OPERATING PROFIT, EUR million 18
Slide 19: Building Diversified Debt Portfolio
BUILDING DIVERSIFIED DEBT PORTFOLIO APPENDIX • 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 credit facilities originally du
Slide 20: Net Debt and Debt Maturities
NET DEBT AND DEBT MATURITIES APPENDIX Available liquidity, Q3/2024 Q3/2023 EUR million Cash 160 248 Committed undrawn credit facilities 305 305 Total 466 553 20
Slide 21: 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