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FINANCIAL TARGETS

FINANCIAL TARGETS 2019–2021

Growing faster than the market: Above 5% CAGR with comparable currencies

Healthy profitability: EBIT at the level of 22% 

Good returns for our shareholders: Dividend above 50% of net earnings

SUMMARY OF KEY INITIATIVES

Our seven ambitions and key initiatives

The Nordic countries

  • Leading product portfolio both in winter and summer segments
  • Superior service level
  • Vianor, strong own distribution channel

Russia

  • Winning market share in A+B segments
  • Further development of direct distribution in selected regions
  • Effective support of customers’ sell-out
  • Development of direct and indirect online sales channels

Central Europe

  • Market-relevant products
  • Building selective distribution in focus markets
  • Brand building through Vianor partners, NADs and focused marketing

North America

  • Expanding our market-relevant product offering
  • Extending the geographic footprint by partnering with key retailers/independent distributors in all season markets
  • Starting in 2020, local manufacturing will improve our service throughout North America

All major winter tire markets

  • Building distribution and logistics setup in selected areas in China
  • Distribution partnership in Japan

Vianor

  • Focus on operational efficiency
  • Improve fixed cost management
  • Optimize service center network
  • Improve sales and pricing management
  • Reform Vianor Partner concept

Heavy Tyres

  • Capacity expansion 20 Mkg ➞ 32 Mkg
  • More than 200 new products by 2022 with new technologies
  • Focus markets: the Nordic Countries, Central Europe and North America
  • Focus segments: forestry, agriculture, on-road, and off-the-road (OTR)
  • Growth in aftermarket

 

RELATED KEY FIGURES

  2018 2017 2016 2015 2014
Net sales, m€ 1,595.6  1,572.5  1,391.2  1,360.1  1,389.1
  growth, %  1.5%  13.0%  2.3%  -2.1%  -8.7%
Operating profit (EBIT), m€  372.4  365.4  310.5  296.0  308.7
   % of net sales  23.3%   23.2%  22.3%    21.8%   22.2%
Dividend per share, eur  1.58  1.56  1.53  1.50  1.45
Dividend pay out ratio, % 73.9%  96.7%  82.6%  83.9%  92.9%

 STRATEGY