Nokian Tyres plc: Financial targets for 2019–2021
Nokian Tyres plc Stock Exchange Release November 12, 2018 at 4:00 p.m.
Nokian Tyres’ Board of Directors has decided on new financial targets for 2019–2021. In line with the strategy update earlier in 2018, Nokian Tyres has entered the next phase of growth and is looking for faster growth especially in North America and Central Europe.
Nokian Tyres’ new financial targets are:
- Growing faster than the market: CAGR above 5% with comparable currencies
- Healthy profitability: EBIT at the level of 22%
- Good returns for our shareholders: Dividend above 50% of net earnings
The financial targets will guide the company in reaching its six strategic ambitions, which were set in early 2018:
- We are the market leader in selected segments in the Nordic countries and Russia
- We increase our sales by 50% in Central Europe in five years
- We double our sales in North America in five years
- Our tires are available in all major winter tire markets
- We increase the EBITDA of Vianor (own) to +3% by the end of 2019
- We increase the sales of Heavy Tyres by 50% in four years
Nokian Tyres’ President and CEO Hille Korhonen: “Nokian Tyres has entered the next phase of growth, where our growth focus is in North America and Central Europe. In line with our updated 2018 strategy, our ambition is to double our sales in North America and grow our sales by 50% in Central Europe in the next 5 years, as well as to maintain our market leadership in the Nordics and Russia. The new financial targets will guide us in executing this strategy.”
“Nokian Tyres is a life driven company, facilitating safe driving. Our unique expertise can be felt in people’s everyday lives as the safest, highest-quality products and services. In line with Nokian Tyres’ mission, we offer comprehensive peace of mind in all conditions, in all our target markets”, Korhonen states.
The previous financial targets for 2016–2018 were:
- Growing faster than the market: Average annual sales growth of 4–5% at a minimum (at stable currency exchange rates)
- Healthy profitability: The best operating profit level in the industry, a minimum of 22%
- Good returns for our shareholders: Dividend of at least 50% of net earnings
Capital Markets Day, November 13, 2018
Nokian Tyres plc will host a Capital Markets Day in Helsinki tomorrow, November 13, starting at 1 pm. The theme of the day will be Nokian Tyres’ next phase of growth.
For more information on the Capital Markets Day, please visit www.nokiantyres.com/cmd2018
Nokian Tyres plc
Päivi Antola, SVP, Communications and IR
Hille Korhonen, President and CEO, tel: +358 10 401 7733
Teemu Kangas-Kärki, CFO, tel: +358 10 401 7750
Päivi Antola, SVP, Communications and IR, tel: +358 10 401 7327
Distribution: Nasdaq Helsinki, media, www.nokiantyres.com
Nokian Tyres is the world’s northernmost tyre manufacturer and one of the most sustainable companies in the industry. We offer peace of mind in all conditions by developing high-quality, safe and eco-friendly tyres for passenger cars, trucks and heavy machinery. We are especially well known for our innovative winter tyres. Our group also includes the Vianor chain, specialising in vehicle maintenance and tyre services. In 2017, the company’s turnover was approximately EUR 1.6 billion and it employed some 4,600 people. Nokian Tyres is listed on Nasdaq Helsinki. Further information: www.nokiantyres.com