GUIDANCE

Half Year Financial Report January–June 2021, August 3, 2021

Guidance for 2021 (unchanged)

In 2021, Nokian Tyres’ net sales with comparable currencies and segments operating profit are expected to grow significantly.

The global car and tire demand is expected to pick up, but the COVID-19 pandemic continues to cause uncertainties for the development.

Assumptions for 2021

Nokian Tyres net sales growth in 2021 will be driven by an extensive pipeline of new product launches, together with continuous improvements in go-to-market activities.

The investments comprising the new US factory, the test center in Spain and the Heavy Tyres capacity expansion in Finland are starting to be completed. Capital expenditure is expected to be below 2020 level. Working capital is anticipated to increase as net sales is expected to grow.

In 2021, the demand for replacement car tires is expected to increase, driven by stronger demand and increasing new car sales. However, the COVID-19 pandemic continues to cause uncertainties for the development.

In Russia, the sales of new cars are expected to increase by 5–10% compared to 2020, as a result of gradual economic recovery, deferred demand and low comparison base. The total replacement tire market sell-in in Russia in 2021 is expected to increase by 10–15% compared to 2020, driven by stronger demand and low carry-over stocks.

The unpredictability in the development of the Russian ruble exchange rate causes uncertainty in 2021. The ruble has weakened in recent years and the average EUR/RUB was 72.5 in 2019, 82.7 in 2020, 90.6 in January 2021, and 89.6 in January–June 2021.

Raw material and logistics costs are estimated to increase significantly in H2 2021 compared to the previous year.

The demand for Nokian Heavy Tyres’ core products is estimated to increase in 2021. Aftermarket demand is expected to continue healthy and OEM demand is expected to recover from 2020 level. Nokian Heavy Tyres’ production capacity continues to increase, which will improve delivery capability for all key markets.

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Previously published guidance

Interim Report January-March 2021, May 4, 2021

Guidance for 2021 (unchanged)

In 2021, Nokian Tyres’ net sales with comparable currencies and segments operating profit are expected to grow significantly.

The global car and tire demand is expected to pick up, but the COVID-19 pandemic continues to cause uncertainties for the development.

 

Financial Statement release 2020, February 9, 2021:

Guidance for 2021

In 2021, Nokian Tyres’ net sales with comparable currencies and segments operating profit are expected to grow significantly.

The global car and tire demand is expected to pick up, but the COVID-19 pandemic continues to cause uncertainties for the development.
 

Stock exchange release 2019, March 27, 2020:

Nokian Tyres plc withdraws financial guidance for 2020

Due to the COVID-19 outbreak, which has increased the uncertainty in the car and tire market, the Board of Directors of Nokian Tyres plc has decided to withdraw the Company’s financial guidance for 2020 published on February 4, 2020. Due to the prevailing uncertainties, the Board is not in a position to give a new guidance.


Financial Statement Release 2019, February 4, 2020:

Guidance for 2020

In 2020, net sales with comparable currencies are expected to decline and operating profit to be significantly below the level of 2019. In line with Nokian Tyres’ updated 2018 strategy, the company is targeting further growth in Russia, Central Europe, and North America. In 2020 however, net sales and operating profit in Russia are expected to decline substantially due to the changed market dynamics. Operating profit in 2020 will include costs related to the North American expansion and other investment programs to support long-term growth, as communicated in 2018.