Drive safely!

Our unique expertise creates the safest premium products and services for the everyday life.

Challenges continue in Russia, growth on other markets

The Russian economy has been weakening since 2013 and the decline accelerated last year. Russia accounted for 34% of our sales in 2013, but this figure fell to just 17% in 2015. Consumer purchasing power in Russia has collapsed as a consequence of the depreciation of the ruble, rapid inflation, and a decline in real earnings. At the same time, the North American economy has shown a reasonable increase and Europe also began looking up. The Nordic countries showed stable development. However, world-wide growth figures for tyre markets were modest and sales of winter tyres remained only slightly positive, with minor growth, due to mild winter conditions.

 

Despite these challenges, our organization and selected strategy showed their strength. Profitability has remained strong throughout the economic crisis in Russia and we had particular success in the second half of 2015, when we reversed a declining three-year trend in profitability and more recent negative sales figures, returning the business to growth.

Read full letter from CEO (pdf)
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Year 2015 in brief

25

%

growth in North Amercian sales.

82

%

growth in SUV summer tyres sales.

93

%

Share of consumers who would recommend Nokian Tyres.

13

%

Growth in sales of tyres for forest machinery.

over 400

new NAD and N-Tyre outlets.

120

new Vianor outlets.

400

over

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The specialist in demanding conditions

Nokian Tyres is the world’s northernmost tyre manufacturer. It promotes and facilitates safe driving in demanding conditions. Whether driving through a winter storm or heavy summer rain, our tyres offer reliability, performance, and peace of mind. We are the only tyre manufacturer to focus on products for demanding conditions and customer requirements.

 

Innovative tyres for passenger cars, trucks, and heavy machinery are mainly marketed in areas with snow, forests and challenging driving conditions caused by varying seasons. We develop our products with the goals of sustainable safety and environmental friendliness throughout the product’s entire life cycle.

 

Nokian Hakkapeliitta has been the leading brand of winter tyres for more than 80 years. In the Nordic countries and Russia, market and price leadership derive from Nokian Tyres’ key sources of competitive advantage: an image of quality based on innovations, state-of-the-art technology, decades of customer experience, a strong distributor network and logistical expertise.

 

Central Europe and North America are also important market areas in which we are seeking profitable growth.

 

We mainly sell our products in the aftermarket. Nokian Tyres group includes the Vianor tyre retail chain with wholesale and retail business in Nokian Tyres’ primary markets. Nokian Tyres has factories in Finland and Russia. In 2005 2015, we invested more than EUR 1 billion in our factories, whose productivity and product quality are top-notch in the industry.

 

In 2015, the company’s Net sales were approximately EUR 1,4 billion, and it employed 4,400 people at the end of year. Nokian Tyres’ stock is listed on the Nasdaq Helsinki.

Our strategic focus

Our purpose is to provide our customers with the safest, highestquality and most eco-friendly tyres as well as the best service in the industry. We want to be a tyre industry pioneer: the expert in safe tyres for demanding conditions, leader in key markets, most profitable tyre company in the world, top choice for our interest groups and a work community with a unique company culture.

We have revised our strategy in 2015 to better support our goals on the way forward. The strategy guides the choices that we make. Based on our values and strategy, we have determined a set of business goals and Must-Win Battles (MWB) – the development targets that we must overcome in the near future in order to advance on the path to profitable growth.

1

Demanding conditions

As the northernmost tyre manufacturer in the world and an expert in challenging conditions, we promote and facilitate safe transport. In freezing blizzards or heavy summer rain, our tyres offer reliability, performance and peace of mind. We are the only tyre manufacturer that focuses on products and customer needs for demanding conditions.

2

Innovative core competence

We are focusing our core competence on a narrow product line, the replacement markets and three business areas: 1) passenger car, SUV and van tyres; 2) heavy special tyres and 3) tyre and car servicing. We develop and manufacture premium tyres whose unique innovations provide added value in different applications from forestry work to safe driving on highways.

3

The most satisfied customers

We want the users of our products and services, as well as our dealers, to be the most satisfied customers in the tyre industry. A committed and extensive distribution network and effective logistics help us ensure the good availability of our products throughout the peak season. The Vianor chain spearheads our distribution channels and its direct contact with consumers provides us with valuable information about the needs and wishes of the end customers.

4

Select markets

We are focusing on regions where the driving conditions are demanding due to the changing seasons. Our key markets are the Nordic countries and Russia, where we are the market leader in premium tyres. Central Europe and North America are other important markets for us in terms of profitable growth. We sell most of our tyres in the replacement markets.

Focus on user experience

The process of selecting and purchasing tyres raises a range of questions among motorists. That is why it is important for us to have a strong presence on social media where we can encounter our customers, offer help and advance, share the positives and address the negatives. As well as consulting tyre manufacturers, motorists often turn to others for information and advice. People may find a helpful tyre expert within their own circle of friends or even on an internet forum. By making itself available for these encounters, Nokian Tyres can strike up a customer relationship long before its tyres are installed and the first miles are clocked up. Products and services that surpass expectations will drive customer relationships from one generation of tyre to the next, and shared user experiences often act as the seeds from which new customer relationships can take root.

Alberta, Canada

Alberta, Canada

emptyLainaus

Nokian Tyres products has turned my SUV into a tank. I run these year round in NE Ohio. There is no situation that these tyres can’t make better,excellent water handling capacity.

Ohio, USA

Norway

Norway

Finland

Finland

emptyLainaus

I’m impressed. A big thank you to the Nokian Tyres for getting me safely through the snow.

Germany

Italy

Italy

UudetTuotteetjaInnovaatiot-mobile

New products and innovations

The Nokian WR winter tyre family intended

The Nokian WR family of winter tyres, intended for the varying winter conditions of Central Europe, was expanded with the addition of several high-quality products

Watch video

The world’s first AA-rated winter tyre

The Nokian WR SUV 3 is the world’s first winter tyre to receive the EU’s top A-grade tyre marking for wet grip and fuel economy.

Watch video

Nokian eNtyre 2.0 – a new generation of high-performance All-Season tyres

The Nokian eNtyre 2.0, a new generation of All-Season tyres customized for North American markets, offers an optimal combination of safety, comfort, and performance.

Read more
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Innovaatiot ja testivoitot

Nokian WR -talvirengasperhe täydentyi

Keski-Euroopan vaihtelevaan talveen suunnattu Nokian WR -talvirengasperhe täydentyi usealla laatutuotteella.

Testattua luotettavuutta ammattikäyttöön

Kokonaan uudistettu Nokian Forest King -tuoteperhe vie pidon uudelle tasolle metsäkoneissa.

Key Figures, IFRS

EUR million20152014change%
Net sales1,360.11,389.1-2.1
Operating profit 296.0308.7-4.1
% net sales 21.8
22.2
Profit before tax 274.2261.25.0
% of net sales 20.218.8
Return on capital employed (ROI), % 20.319.2
Return on equity (ROE), % 19.616.0
Interest bearing net debt -209.7-164.6-27.4
% of net sales -15.4-11.8
Gross investments 101.780.626.2
% of net sales 7.55.8
Net cash flow from operating activities283.4323.4-12.4
Earnings per share (EPS), EUR 1.801.5615.1
Cash flow per share (CFPS), EUR 2.122.43-12.7
Shareholders equity per share, EUR 9.249.071.8
Equity ratio, % 70.867.5
Personnel, average during the year4,4214,272

Key Figures

Net sales, Operating profit
and Operating profit%

enGraafi-01
2011 2012 2013 2014 2015
Net sales 1,456.8 1,612.4 1,521.0 1,389.1 1,360.1
Operating profit 380.1 415.0 385.5 308.7 296.0
Operating profit% 26.1 25.7 25.3 22.2 21.8

Profit before tax

PrfitBTax
2011 2012 2013 2014 2015
EUR million 359.2 387.7 312.8 261.2 274.2

Earnings per share

EperShare
2011 2012 2013 2014 2015
EUR 2.39 2.52 1.39 1.56 1.80

Equity ratio

Equity
2011 2012 2013 2014 2015
% 63.2 71.2 67.6 67.5 70.8

Net sales by market area

Share of Group’s sales, %

netPer-01
2014 2015
1. Finland 15% 16%
2. Sweden 13% 15%
3. Norway  12% 13%
4. Russia and CIS 26% 17%
5. Other Europe 24% 26%
6. North America 9% 12%

Net sales by business unit

Share of Group’s sales, %

netByBu
2014 2015
1. Passenger Car Tyres 68% 66%
2. Heavy Tyres 10% 11%
3. Vianor  22%  23%

Gross investments

Gross
2011 2012 2013 2014 2015
milj. EUR 161.7 209.2 125.6 80.6 101.7

Gearing

Gearing
2011 2012 2013 2014 2015
% -0.3 -4.5 -4.1 -13.6 -16.9