Nokian Tyres provides restated financial statements for the four quarters and the full financial year of 2019 reflecting new financial reporting practices and greater transparency

Nokian Tyres plc Stock Exchange Release April 24, 2020 at 8:00 a.m. 

Nokian Tyres is increasing the level of disclosure in order to provide greater transparency on the underlying performance of the company and its business lines. Starting with the results for the first quarter of 2020, Nokian Tyres will report non-IFRS figures in addition to its IFRS-reported results, which is also in line with reporting practices in the tire industry.

In advance of the forthcoming publication of the first quarter results 2020, Nokian Tyres publishes restated figures for the four quarters and the full financial year of 2019. The restated financial results reflect a new definition of sales adjustments and net sales, and new treatment of warehousing costs and operating cost of Vianor’s own service centers in the Nordics:

  • The definition of sales adjustments and net sales have been unified across the Group. In addition, the geographical split of net sales has been redefined to better align with the way in which management monitors the business.
  • The definition of cost of sales, which has previously been limited to the cost of sales for the Group’s manufacturing activities, now includes the warehousing costs of all business units and operating costs of Vianor’s own service centers in the Nordics. These costs were previously captured in selling, general and administrative expenses.

The changes have no impact on the Group’s operating income.

In addition, in line with financial regulations, Nokian Tyres supplements its financial reporting with non-IFRS figures on operational performance and allocation of resources. The non-IFRS figures should not be viewed in isolation or as substitutes for the equivalent IFRS figure(s) but should be used in conjunction with the most directly comparable IFRS figure(s) in the reported results.

The Segments Total figures exclude costs related to the US factory ramp-up, goodwill impairment charges, restructuring and certain other items, which are not indicative of Nokian Tyres’ underlying business performance. In the 2019 results, the Segments Total figures exclude the US factory ramp-up cost only.

The first quarter 2020 results will be published on May 5, 2020.

Q1-Q4/2019 (unaudited) Passenger Car Tyres Heavy
Tyres
Vianor Other & Elimina-
tion
Segments Total Non-IFRS exclusions Nokian Tyres Total
Net sales 1,123.8 202.7 336.5 -77.6 1,585.4 0.0 1,585.4
Gross Profit 455.8 57.7 74.7 -4.8 583.4 -11.8 571.6
% of net sales 40.6% 28.4% 22.2% - 36.8% - 36.1%
Selling, marketing and R&D expenses -95.1 -17.1 -60.7 -1.8 -174.7 -0.4 -175.1
Administration expenses -47.1 -5.0 -8.9 -5.6 -66.6 -8.6 -75.2
% of net sales 12.7% 10.9% 20.7% - 15.2% - 15.8%
Other income 0.5 0.1 2.8 0.1 3.5 0.0 3.5
Other expenses -5.6 -0.0 -0.3 -2.5 -8.4 0.0 -8.4
Operating profit 308.5 35.7 7.7 -14.7 337.2 -20.8 316.5
% of net sales 27.4% 17.6% 2.3% - 21.3% - 20.0%
 

Q1/2019
(unaudited)

Passenger Car Tyres Heavy Tyres Vianor Other & Elimina-tion Segments Total Non-IFRS exclusions Nokian Tyres Total
Net sales 253.0 48.3 57.0 -17.9 340.3 0.0 340.3
Gross Profit 100.1 14.1 6.3 -3.7 116.8 -0.9 115.9
% of net sales 39.6% 29.2% 11.1% - 34.3% - 34.1%
Selling, marketing and R&D expenses -22.9 -4.0 -15.6 -0.8 -43.3 -0.3 -43.6
Administration expenses -11.5 -1.1 -2.6 -1.9 -17.1 -1.6 -18.7
% of net sales 13.6% 10.6% 32.0% - 17.8% - 18.3%
Other income 0.1 0.0 0.5 0.0 0.6 0.0 0.6
Other expenses 0.1 0.0 -0.5 0.0 -0.4 0.0 -0.4
Operating profit 66.0 9.0 -12.0 -6.3 56.7 -2.8 53.9
% of net sales 26.1% 18.7% -21.0% - 16.7% - 15.9%
 

Q2/2019
(unaudited)

Passenger Car Tyres Heavy Tyres Vianor Other & Elimina-tion Segments Total Non-IFRS exclusions Nokian Tyres Total
Net sales 296.8 47.8 89.8 -18.6 415.7 0.0 415.7
Gross Profit 123.2 14.4 26.3 0.5 164.4 -1.3 163.1
% of net sales 41.5% 30.1% 29.4% - 39.5% - 39.2%
Selling, marketing and R&D expenses -25.3 -4.7 -14.6 -0.5 -45.1 -0.2 -45.4
Administration expenses -12.4 -1.4 -2.2 -3.6 -19.6 -3.2 -22.9
% of net sales 12.7% 12.8% 18.8% - 15.6% - 16.4%
Other income 0.0 0.0 0.1 0.0 0.1 0.0 0.1
Other expenses -0.8 0.0 -0.2 0.0 -0.9 0.0 -0.9
Operating profit 84.7 8.3 9.4 -3.5 98.8 -4.7 94.1
% of net sales 28.5% 17.4% 10.4% - 23.8% - 22.6%
 

Q3/2019
(unaudited)

Passenger Car Tyres Heavy Tyres Vianor Other & Elimina-tion Segments Total Non-IFRS exclusions Nokian Tyres Total
Net sales 256.7 52.2 69.7 -24.1 354.5 0.0 354.5
Gross Profit 111.6 13.9 11.6 -5.0 132.1 -4.5 127.6
% of net sales 43.5% 26.6% 16.6% - 37.2% - 36.0%
Selling, marketing and R&D expenses -21.5 -4.0 -13.2 0.3 -38.4 -1.2 -39.6
Administration expenses -12.4 -1.6 -2.2 -0.5 -16.7 -1.8 -18.4
% of net sales 13.2% 10.7% 22.0% - 15.5% - 16.4%
Other income 0.1 0.0 0.1 0.0 0.2 0.0 0.2
Other expenses -2.2 0.0 -0.2 0.0 -2.4 0.0 -2.4
Operating profit 75.6 8.3 -3.8 -5.2 74.9 -7.5 67.5
% of net sales 29.5% 15.9% -5.5% - 21.1% - 19.0%
 

Q4/2019
(unaudited)

Passenger Car Tyres Heavy Tyres Vianor Other & Elimina-tion Segments Total Non-IFRS exclusions Nokian Tyres Total
Net sales 317.3 54.5 120.0 -17.0 474.8 0.0 474.8
Gross Profit 120.9 15.3 30.5 3.4 170.1 -5.1 164.9
% of net sales 38.1% 28.1% 25.4% - 35.8% - 34.7%
Selling, marketing and R&D expenses -25.5 -4.4 -17.2 -0.8 -47.9 1.4 -46.5
Administration expenses -10.8 -0.9 -1.8 0.3 -13.2 -2.0 -15.2
% of net sales 11.5% 9.6% 15.9% - 12.9% - 13.0%
Other income 0.3 0.0 2.1 0.1 2.5 0.0 2.5
Other expenses -2.7 0.0 0.6 -2.7 -4.8 0.0 -4.8
Operating profit 82.2 10.1 14.1 0.3 106.8 -5.8 101.0
% of net sales 25.9% 18.6% 11.8% - 22.5% - 21.3%

Segments Total
The Segments Total figures exclude costs related to the US factory ramp-up, goodwill impairment charges, restructuring and certain other items, which are not indicative of Nokian Tyres’ underlying business performance. In the 2019 results, the Segments Total figures exclude the US factory ramp-up cost only.

Net sales, EUR million

     

Q1/2019

Q2/2019 Q3/2019 Q4/2019 FY2019
Nordics 121.1 152.3 136.0 203.6 613.2
Other Europe 71.1 91.2 106.3 106.9 375.5
Russia and Asia 92.7 99.4 52.1 80.1 324.3
Americas 43.7 55.4 43.3 66.9 209.3
Other 11.7 17.4 16.7 17.3 63.2
Total 340.3 415.7 354.5 474.8 1,585.4

Nokian Tyres plc

Päivi Antola
SVP, Corporate Communications and Investor Relations

Further information:
Teemu Kangas-Kärki, CFO, tel. +358 10 401 7750

Distribution: Nasdaq Helsinki, media, www.nokiantyres.com

Nokian Tyres develops and manufactures premium tires for people who value safety and sustainability. Inspired by our Scandinavian heritage, we craft innovative products for passenger cars, trucks and heavy machinery that give you peace of mind in all driving conditions. Our Vianor chain provides tire and car services. In 2019, the company’s net sales were EUR 1.6 billion and it employed some 4,700 people. Nokian Tyres is listed on Nasdaq Helsinki. Further information: www.nokiantyres.com

About Us

Nokian Tyres develops and manufactures premium tires for people who value safety and sustainability. Inspired by our Scandinavian heritage, we craft innovative products for passenger cars, trucks and heavy machinery that give you peace of mind in all driving conditions. Our Vianor chain provides tire and car services. In 2019, the company’s net sales were EUR 1.6 billion and it employed some 4,700 people. Nokian Tyres is listed on Nasdaq Helsinki. Further information: www.nokiantyres.com

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