why invest in US
Nokian Tyres is a growing, highly profitable company with a strong cash flow. We are committed to provide consistent and healthy returns to our shareholders.
Growing market positions with strong brands
Nokian Tyres is the market leader in premium car tires in the Nordic countries and Russia, while Central Europe and North America represent attractive growth opportunities for our business. In addition, we are one of the world's leading manufacturers of heavy special tires for selected segments, such as forest and agricultural machinery. We work in close collaboration with our customers to design tires that meet the specific market and consumer needs, with safety and eco-friendliness as our guiding principles in product development. Ever since we invented the world’s first winter tire almost a century ago, our passion for innovation has driven our success. Today, we continue to advance our product leadership and excite customers and consumers with our strong brand portfolio.
Generating profitable growth ahead of the market
Nokian Tyres aims for organic growth ahead of the market. Over the mid-term, our target is to reach EUR 2 billion in net sales and keep profitability at the high level by targeting segments operating profit and segments return on capital employed at a level of 20%. In order to drive profitable growth, we continue to strengthen our position in all key markets and selected product segments by focusing on the most profitable niches and building on our core strengths: high-quality products and a premium brand, effective supply chain, leadership in sustainability and a strong Nokian Tyres team. Continuous improvements in operational and commercial performance, combined with market growth, will support our future performance.
Delivering strong cash generation and healthy returns
Nokian Tyres has a strong financial position and a high equity ratio. We generate strong cash flow through prioritized investments and careful working capital management in order to deliver healthy returns to our shareholders. We prioritise capital allocation on 1) organic growth, 2) returning cash to shareholders through dividends, 3) M&A and 4) share buybacks. Our financial strength and strong cash generation makes us well positioned to deliver sustainable growth and long-term shareholder value.
Maintaining attractive dividends
Nokian Tyres has a track record of delivering sustainable dividends as part of its balanced capital allocation priorities. Except for 2019, we have maintained or increased our annual dividend for the last 12 years. Our dividend policy is to distribute more than 50% of net earnings as dividends each year.
Empowering the world to drive smarter
Nokian Tyres is a sustainability frontrunner in the industry and is committed to continuing this development through safe, smart and sustainable driving. With our new, ambitious non-financial targets we want to set the bar even higher. Our focus is on bringing new environmental and safety innovations to products, reducing CO₂ emissions in line with the Science Based Targets, further improving workplace safety, and monitoring the sustainability of suppliers. One of our targets is to increase either recycled or renewable raw materials in our tires to 50% by 2030.
In line with our mission, we want to empower the world to drive smarter. This does not only provide us with further business opportunities, but it also contributes to a more sustainable world.