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FINANCIAL TARGETS

FINANCIAL TARGETS 2019–2021

Published in November 2018

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

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

  2019 2018 2017 2016 2015
Net sales, m€ 1,585.4 1,595.6  1,572.5  1,391.2  1,360.1
  growth, % -0,6%  1.5%  13.0%  2.3%  -2.1%
Operating profit (EBIT), m€ 316.5  372.4  365.4  310.5  296.0
   % of net sales 20.0%  23.3%   23.2%  22.3%    21.8%
Dividend per share, eur 1.58*  1.58  1.56  1.53  1.50
Dividend pay out ratio, % 55% 73.9%  96.7%  82.6%  83.9%

* EUR 0.79 per share was paid on April 17, 2020. The AGM 2020 also authorized the Board to decide on the distribution of dividends of up to EUR 0.79 per share in one or more installments at a later date. 

Find out more about Nokian Tyres' growth strategy here.