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

  2020 2019 2018 2017 2016
Net sales, m€ 1,313.8 1,585.4 1,595.6  1,572.5  1,391.2
  growth, % -17.1% -0,6%  1.5%  13.0%  2.3%
Operating profit (EBIT), m€ 120.0 316.5  372.4  365.4  310.5
   % of net sales 9.1% 20.0%  23.3%   23.2%  22.3% 
Dividend per share, eur  1.20 1.14  1.58  1.56  1.53
Dividend pay out ratio, %  193%  40% 73.9%  96.7%  82.6%

Find out more about Nokian Tyres' growth strategy here.