Tue November 17 09:00 am 2015 in category Stock exchange releases
Nokian Tyres plc Stock Exchange Release 17 November 2015,09.00 a.m.
Nokian Tyres’ Capital Markets Day 2015: Back to profitable growth
Nokian Tyres will host Capital Markets Day for investors and analysts today in Helsinki, Finland. The event focuses on Nokian Tyres’ strategy and financial targets. There are no changes to the previously communicated market outlook or guidance for 2015.
“The competitiveness of the Nokian Tyres product offering is very strong. The number of test wins is at the highest level and a series of successful launches of new innovative products has resulted in a wider portfolio than ever before. A strong position in the core markets, an expanding distribution channel, and an improved cost structure combined with new test winner products give Nokian Tyres opportunities to grow and to provide healthy margins and a strong cash flow also in the future. In order to meet the future demand and to serve our customers even better, we are planning to build the third factory. The decision of the factory and its location will be made by Q4/2016. I feel very confident that we have now started our journey back to profitable growth,” says President and CEO Ari Lehtoranta.
Financial targets and dividend policy set for 2016-2018
Nokian Tyres’ financial targets for 2016-2018: grow faster than the market with healthy profitability. With the present market outlook this would result to minimum 4-5% average annual sales growth for the period 2016-2018. Company targets to maintain its industry leading operating profit level of minimum 22%.
Nokian Tyres’ dividend policy for 2016-2018: company’s target is to provide steady or higher absolute dividend per share throughout 2016-2018 (despite the investments in the third factory). Company targets to distribute at least 50% of net profits in dividends.
“Nokian Tyres is on track to reach the financial targets. Our operating profit level in January-September 2015 was 21.5%, despite the economic challenges in Russia and delay of the winter season. Our dividend distribution has already been stable, 1.45 EUR per share in the years 2012-2014, and we are aiming at steady development also in the following years,” Lehtoranta continues.
Overview of the programme
During the Capital Markets Day, President and CEO Ari Lehtoranta will talk more about Nokian Tyres’ competitive landscape, strategy and financial targets. Petri Niemi, Head of Product and Price Management, presents car tyre business portfolio. Alexej von Bagh, VP, Vianor, focuses in his presentation on distribution and Vianor. Andrei Pantioukhov, VP, Russia, will talk about Russia’s situation and company’s role in Russia. Pontus Stenberg, VP, Sales, will concentrate on Heavy Tyres. Antti-Jussi Tähtinen, VP, Marketing and Communications, focuses on company’s strategy for online business.
The Capital Markets Day will start at 12.00 Finnish time. All presentations will be available in English at www.nokiantyres.com/cmd.
Nokian Tyres plc
Antti-Jussi Tähtinen Vice President, Marketing and Communications
Further information: Ari Lehtoranta, President & CEO, tel: +358 10 401 7733 Anne Leskelä, VP, Finance & Control, IR, tel: +358 10 401 7481
Distribution: NASDAQ Helsinki, media and www.nokiantyres.com