Nokian Tyres (TYRES) Status Update summary

Strategic transformation and manufacturing footprint

• Transitioned away from Russian production, previously 70-80% of output, establishing new manufacturing in Romania and expanding North American capabilities.

• Romania factory ramp-up is a top priority, targeting 1 million units in 2024 and up to 6 million by 2027-2028.

• North American operations reorganized, with investment in the Dayton plant to reach full capacity by end of 2025.

• Three production facilities in Finland, US, and Romania support a balanced manufacturing platform.

• Local-for-local production model enhances agility and reduces vulnerability, supporting future growth.

Efficiency, productivity, and cost actions

• Focus on enlarging and renegotiating supplier base, improving payment terms, and increasing procurement flexibility.

• Centralized functions and elimination of duplicated roles drive continuous improvement and SG&A efficiency.

• Targeting SG&A at 15% of sales by 2028, down from 17% in the previous year.

• Emphasis on operational efficiency, strict cost control, and optimizing SGA structure to support profitability.

• Warehouse and supply chain improvements in North America expected to yield significant logistics efficiencies.

Market development and brand strategy

• Strengthening management focus on Central and South Europe, North America, and new heavy tire segments to drive growth.

• Launching new product lines, such as the Nokian Seasonproof 2, with sustainability features to enhance brand value.

• Investing in branding and communication to increase market visibility and support premium pricing.

• Expanding sales network and marketing efforts in Europe and North America to regain lost business and accelerate growth.

• Strengthening brand awareness and consumer focus, especially in less established markets, to build long-term loyalty.