Stock exchange release
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 | 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 | 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 | 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 | 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