FINANCIAL TARGETS
FINANCIAL TARGETS 2019–2021Growing 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.