Nokian Renkaat Oyj · OMXHEX:TYRES
Nokian Renkaat Oyj — Nokian Tyres — Q4 2021 Earnings Presentation
26 slides from Nokian Renkaat Oyj's earnings presentation, Feb 8, 2022
Slide 1: Record High Sales with Improved Profit in 2021
RECORD HIGH SALES WITH IMPROVED PROFIT IN 2021 Q4 AND FULL-YEAR RESULTS 2021 FEBRUARY 8, 2022 JUKKA MOISIO – CEO TEEMU KANGAS-KÄRKI – CFO
Slide 2: All-Time High Quarterly Net Sales in Q4
ALL-TIME HIGH QUARTERLY NET SALES IN Q4 • Net sales EUR 512.6 million (413.4), +18.4% with comparable currencies • Demand continued strong in main markets • Net sales increased in all business units and areas • Segments operating profit EUR 88.0 million (80.1) • Driven by higher sales volume • Price
Slide 3: Strong Performance Across the Organization in 2021
STRONG PERFORMANCE ACROSS THE ORGANIZATION IN 2021 • Net sales EUR 1,714.1 million (1,313.8), +29.7% with comparable currencies • Record high full year net sales • All business units and areas contributed to the growth • Heavy Tyres reached an all-time high full year net sales and segment operating
Slide 4: Strong Cash Flow, FY2021 Capex Below 2020 Level
STRONG CASH FLOW, FY2021 CAPEX BELOW 2020 LEVEL Balance sheet continues to be strong 10–12 10–12 CC* CC* EUR million /21 /20 Change Change 2021 2020 Change Change Net sales 512.6 413.4 24.0% 18.4% 1,714.1 1,313.8 30.5% 29.7% Segments operating profit 88.0 80.1 324.8 190.2 Segments operating profit %
Slide 5: Solid Progress Towards Our Financial Targets Announced in September 2021
SOLID PROGRESS TOWARDS OUR FINANCIAL TARGETS ANNOUNCED IN SEPTEMBER 2021 Mid-term target Performance in 2021 GROWING FASTER Net sales EUR 2 billion EUR 1,714 million THAN THE MARKET Segments Operating Profit ~20%* 19.0% HIGH RETURNS & PROFITABILITY Segments ROCE ~20%* 15.8% GROWING ORDINARY EUR 1.32
Slide 6: Q4: Passenger Car Tyres
Q4: PASSENGER CAR TYRES Strong volume growth continued 10–12 10–12 CC* CC* /21 /20 Change Change 2021 2020 Change Change Net sales, M€ 342.8 262.0 30.8% 24.2% 1,199.2 871.3 37.6% 37.8% Segment operating 77.7 66.5 298.7 177.8 profit, M€ Segment operating 22.1% 25.4% 24.9% 20.4% profit, % * Comparable
Slide 7: Q4: Passenger Car Tyres Bridge
Q4: PASSENGER CAR TYRES BRIDGE Cost inflation was partly offset by price increases NET SALES, M€ SEGMENT OPERATING PROFIT, M€ 7
Slide 8: Q4: Heavy Tyres
Q4: HEAVY TYRES Strong sales growth, FY net sales and operating profit at all -time high 10–12 10–12 CC* CC* /21 /20 Change Change 2021 2020 Change Change Net sales, M€ 65.3 53.2 22.8% 19.2% 254.0 194.6 30.5% 28.9% Segment operating 4.1 5.0 40.3 23.7 profit, M€ Segment operating 6.2% 9.5% 15.9% 12.2
Slide 9: Q4: Vianor
Q4: VIANOR Good sales performance in all operating countries 10–12 10–12 CC* CC* /21 /20 Change Change 2021 2020 Change Change Net sales, M€ 123.1 115.4 6.7% 2.8% 342.9 318.1 7.8% 4.2% Segment operating 8.4 10.0 4.1 4.0 profit, M€ Segment operating 6.8% 8.7% 1.2% 1.3% profit, % Number of own service
Slide 10: Record Number of New Products Launched in 2020–2021
WE HAVE LAUNCHED A RECORD NUMBER OF NEW PRODUCTS IN 2020–2021 – AND THIS WILL CONTINUE Examples Nokian Tyres One HT Nokian Snowproof P Nokian Seasonproof Nokian Seasonproof SUV Nokian Tyres Nokian Hakka Green 3 Nokian Tyres One Nokian Ground Kare Hakkapeliitta C4 Nokian Tyres Semi-Slick Hakkapeliitt
Slide 11: Further Improving Sustainability Performance Through New Non-Financial Targets
WE WILL FURTHER IMPROVE OUR SUSTAINABILITY PERFORMANCE THROUGH NEW NON-FINANCIAL TARGETS… FOCUS AREAS TARGETS Safe and Increasing the share of recycled or renewable raw 1 eco-friendly tires materials in tires to 50% by 2030 Management team incentives Reducing CO2 emissions from tire production by mo
Slide 12: Annually Reporting on Progress Achieving Those Targets
…AND WE WILL ANNUALLY REPORT ON OUR PROGRESS ACHIEVING THOSE TARGETS FOCUS AREAS TARGETS STATUS IN 2021 Safe and Increasing the share of recycled or renewable raw 1 25% in selected tires* eco-friendly tires materials in tires to 50% by 2030 Reducing CO2 emissions from tire production by more To be r
Slide 13: Leading the Way to More Sustainable Driving
LEADING THE WAY TO MORE SUSTAINABLE DRIVING NOKIAN TYRES NOKIAN TYRES GREEN STEP SUSTAINABLE TIRE CONCEPT TIRE INNOVATION CHALLENGE Masterpiece of sustainability innovation: - Fast race, big change - 93% of materials recycled or renewable Open competition to fight climate change and Innovations crea
Slide 14: Assumptions for 2022
APPENDIX ASSUMPTIONS FOR 2022 • Replacement car tire demand expected to grow • Demand for Nokian Heavy Tyres’ core products estimated to continue strong • Uncertainties due to COVID-19 pandemic, current geopolitical situation and Russian ruble • Average EUR/RUB: 72.5 in 2019, 82.7 in 2020, 87.2 in 2
Slide 15: Guidance for 2022
GUIDANCE FOR 2022 In 2022, Nokian Tyres’ net sales with comparable currencies are expected to grow significantly and segments operating profit is expected to grow. The global car and tire demand is expected to grow. The COVID-19 pandemic continues to cause uncertainties, including cost inflation and
Slide 16: Nokian Tyres' Revised Growth Strategy: Ambitious Leap Forward
NOKIAN TYRES’ REVISED GROWTH STRATEGY: AMBITIOUS LEAP FORWARD PURPOSE EMPOWER THE WORLD TO DRIVE SMARTER WE DRIVE TOPLINE WITH NEW PRODUCTS FINANCIAL TARGETS EUR AND STRONGER GO-TO-MARKET • Growing faster than the market BUSINESS AREA AND UNIT ROLES 2 BILLION MID-TERM • NORDICS & VIANOR: Strengthen
Slide 17: Thank You!
THANK YOU!
Slide 18: Appendix
APPENDIX
Slide 19: Car and Tire Markets in 2021
APPENDIX CAR AND TIRE MARKETS IN 2021 The Nordic countries Russia Europe (excl. the Nordic countries) North America New car sales 9% New car sales 4% New car sales -2% New car sales 4% Car tire sell-in 10% Car tire sell-in 30% Car tire sell-in 11% Car tire sell-in 17% Heavy tire segments* Heavy tire
Slide 20: Group Segments Operating Profit per Quarter 2017–2021
APPENDIX GROUP SEGMENTS OPERATING PROFIT PER QUARTER 2017–2021* 2021 CUMULATIVE SEGMENTS OPERATING PROFIT PER REVIEW PERIOD • Net sales 1,714.1 M€ (1,313.8), 30.5% • Segments operating profit 324.8 M€ (190.2) 10–12/2021 SEGMENTS OPERATING PROFIT PER QUARTER • Net sales 512.6 M€ (413.4), 24.0% • Segm
Slide 21: 2021: Passenger Car Tyres Bridge
APPENDIX 2021: PASSENGER CAR TYRES BRIDGE Higher sales volume impacted segment operating profit by EUR 148 million NET SALES, M€ SEGMENT OPERATING PROFIT, M€ 21
Slide 22: Passenger Car Tyres Net Sales - Quarterly Changes
APPENDIX PASSENGER CAR TYRES NET SALES - QUARTERLY CHANGES YoY Change % 22
Slide 23: Material Cost Development
APPENDIX MATERIAL COST DEVELOPMENT Increased in 2021 MATERIAL COST DEVELOPMENT INDEX 2010–E2022 140 131 131 MATERIAL COSTS (€/KG) 130 118 120 • Increased by 39.4% in Q4/2021 114 110 vs. Q4/2020 100 98 100 96 96 92 92 • Increased by 6.9% in Q4/2021 90 84 83 vs. Q3/2021 80 79 • Increased by 16.4% in 2
Slide 24: Net Debt and Debt Maturities
APPENDIX NET DEBT AND DEBT MATURITIES 24
Slide 25: Network Development
APPENDIX NETWORK DEVELOPMENT NAD Vianor, NAD, N-Tyre; -20 stores in 2021 N-TYRE VIANOR VIANOR – 1,047 SERVICE CENTERS ICELAND IN 14 COUNTRIES 4 USA CANADA 175 own stores and 872 partners 412 24 Own +1, partner -71 vs. year-end 2020 NORWAY SWEDEN FINLAND 137 92 98 • Largest tire chain in the Nordic c
Slide 26: 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