Market share gains and improvements in operations mitigate

Nokian Tyres plc Financial Statement Bulletin 2014, 5 February 2015, 8 a.m.

Market share gains and improvements in operations mitigate the impact of the
weak Russian economy. Strong cash flow enables stable dividends.

October-December 2014

·
Net sales decreased by 7.7% to EUR 380.0 million (EUR 411.8 million in 10
-12/2013).

·
Operating profit was down by 16.9% to EUR 77.5 million (93.2). Operating profit
percentage was 20.4% (22.6%).

·
Profit for the period increased by 237.6% amounting to EUR 50.1 million (-36.4).

·
Earnings per share were up by 232.1% to EUR 0.37 (EUR -0.28).

January-December 2014

·
Net sales decreased by 8.7% to EUR 1,389.1 million (EUR 1,521.0 million in
2013). Currency rate changes cut Net sales by EUR 99.9 million compared with the
rates in 2013.

·
Operating profit was down by 19.9% to EUR 308.7 million (385.5). Operating
profit percentage was 22.2% (25.3%).

·
Profit for the period increased by 13.4% amounting to EUR 208.4 million (183.7).

·
Earnings per share were up by 12.9% to EUR 1.56 (EUR 1.39).

·
Cash flow from operations was EUR 458.3 million (325.6).

Dividend

The Board of director proposes a dividend of EUR 1.45 (EUR 1.45) per share.

Financial guidance

In 2015, with stable exchange rates, Net sales and Operating profit are to
decline slightly compared to 2014. First quarter Operating profit will be
significantly below last year, as a delayed start of winter tyre sales in Russia
will result in sales shifting to the following quarters.

Key figures, 10-12/14 10-12/13 Change% 2014 2013 Change%
EUR million
Net sales 380.0 411.8 -7.7 1,389.1 1,521.0 -8.7
Operating 77.5 93.2 -16.9 308.7 385.5 -19.9
profit
Operating 20.4 22.6 22.2 25.3
profit %
Profit 65.0 57.7 12.7 261.2 312.8 -16.5
before tax
Profit for 50.1 -36.4 237.6 208.4 183.7 13.4
the period
Earnings per 0.37 -0.28 232.1 1.56 1.39 12.9
share, EUR
Equity 67.5 67.6
ratio, %
Cash flow 579.1 515.9 12.2 458.3 325.6 40.7
from
operations
RONA,% 18.3 20.2
(roll. 12
months)
Gearing, % -13.6 -4.1

Ari Lehtoranta, President and CEO:

“The drastic oil price drop combined with further weakening of Russian and CIS
currencies and economies had a negative impact on our sales and thus on our
financial performance. Our teams, however, were able to strengthen our market
position in all markets and continue to improve our operational efficiency. This
together with higher than estimated material cost reductions helped us to
deliver good financial results. I am especially happy for the record strong cash
flow.

Currency rate changes cut our full year Net sales directly by EUR 99.9 million,
which together with the product mix change and price pressure caused our
Operating profit to drop by 3.1 percentage points. Thanks to the declining raw
material cost, improved productivity and running a tight ship, our profitability
remained on a good 22% EBIT level.

Our distribution network continues to grow; the current number of Vianor stores
is 1,355 and the NAD network has already grown to 869 stores. Additionally, we
have launched a new N-Tyre partner concept in Russia and 53 stores are already
in operation. The competitiveness of our product portfolio is in great shape; we
have been winning the majority of professional tests not only with our winter
tyres but also increasingly with our summer tyres. Our Heavy Tyres and Vianor
business units continued to improve their profitability.

Even if the market development visibility in Russia and CIS is very poor at the
moment, we remain confident about our future. We start 2015 with a strong
balance sheet, better than ever product range, constantly expanding distribution
and a well performing organization.”

Market situation

The geopolitical turmoil hurt the global economic growth in 2014. USA has
continued to be the growth engine with supportive monetary policy, improved
industrial production and strong employment ratio giving fuel for growth. The
European economy showed growth in the beginning of 2014, but hit by the Ukraine
conflict, the growth slowed down. In January 2015 the ECB announced to begin a
1.2 trillion-euro quantitative easing program, which is expected to improve the
economic activity in the area. Even though many of the emerging economies are
currently weak and geopolitical risks have remained, the global GDP is estimated
to grow by 3.8% in 2015.

In the Nordic countries the new car sales increased in 2014 by 8% year-over
-year. The market volume of car tyres showed a decrease of 1% compared to 2013.
No considerable change in tyre demand is visible going into 2015. The Nordic
countries area is estimated to show slow but comparatively stable development
with a full year 2015 GDP growth of 2%.

In Europe the sales of new cars increased in 2014 by 6% year-over-year. Premium
car tyre sell-in to distributors increased by 2% compared to 2013. Tyre demand
is estimated to show growth in Central Europe in 2015. The pricing pressure is,
however, tight.

Russia’s economy and consumer markets continued to deteriorate due to the
falling oil price resulting in significant devaluation of the Russian Rouble
(over 60% against EUR). The fundamental weakness of the economy was further
reinforced by the impact of the Ukraine conflict and US / EU sanctions against
Russia. The consumer spending has been held back by the devalued Rouble combined
with high inflation and interest rates. Russia’s full year 2015 GDP growth
estimates vary currently between
-3% and -8%.

The sales of new cars in 2014 in Russia decreased by 10.3% compared to 2013. The
car sales improved in December due to consumers actively investing their rapidly
devaluing savings at still ‘old’ prices, but the overall trend continues to be
negative. New car sales are estimated to decline by 20-25% in 2015 vs. 2014, in
the basic scenario. However, the car park is growing every year by some 1
million units.

In 2014 the sell-in volume for A and B segment tyres in Russia is estimated to
have decreased by 3-5%. The mid class B-segment tyres’ increasing share of total
market has weakened the product mix, which combined with the devaluation of the
Ruble has resulted in lower Average Selling Prices in Russia. In the year-turn
the tyre manufacturers have announced gradual price increases of 10-20% for year
2015, but the final outcome depends on how the Rouble exchange rate develops
during the year. The overall pricing environment in Russia remains tight.

The demand for special heavy tyres varied strongly between product and market
areas. OE forestry tyre demand was strong in 2014. The increasing use of wood
and good profitability of pulp manufacturers will support forestry machine and
tyre demand also in 2015.

Truck tyre demand improved in 2014; in Europe the sell-in of premium truck tyres
was up by 4%, and in the Nordic countries the demand increased by 14% year-over
-year. However, the premium truck tyre demand in Russia decreased by 6% compared
to 2013. The truck tyre demand in 2015 is estimated to be on the same level than
previous year in all Nokian Tyres’ western markets; in Russia the demand is
expected to decline.

Raw materials

The tailwind from tyre industry raw material prices continued through 2014. The
raw material cost (€/kg) for Nokian Tyres was down 16.5% in 2014 year-over-year,
savings of approximately EUR 64 million. The raw material cost is estimated to
decrease by 5% in full year 2015, providing a tailwind of EUR 15 million versus
2014.

REVIEW OF OCTOBER-DECEMBER 2014

Nokian Tyres Group recorded Net sales of EUR 380.0 million (411.8), showing a
decrease of 7.7% compared with 10-12/2013. In the Nordic countries sales
increased by 1.3% year-over-year. Sales in Russia decreased by 31.6%. Russia and
CIS consolidated sales dropped by 31.1%. In Other Europe sales were down by
15.7% and in North America sales increased by 7.7%.

Raw material cost (EUR/kg) in manufacturing decreased by 26.3% year-over-year
and decreased by 19.6% versus the third quarter of 2014. Fixed costs amounted to
EUR 109.6 million (112.8), accounting for 28.9% (27.4%) of Net sales.

Nokian Tyres Group's Operating profit amounted to EUR 77.5 million (93.2). The
Operating profit was affected by expensed credit losses and provisions of EUR
4.0 million (8.4).

Net financial expenses were EUR 12.5 million (35.6). Net interest expenses were
EUR 4.6 million (25.3). Net financial expenses include EUR 7.9 million (10.3) of
exchange rate differences.

Profit before tax was EUR 65.0 million (57.7). Profit for the period amounted to
EUR 50.1 million (-36.4), and EPS were EUR 0.37 (EUR -0.28).

REVIEW OF JANUARY-DECEMBER 2014

Nokian Tyres Group recorded Net sales of EUR 1,389.1 million (1,521.0), showing
a decrease of 8.7% compared with 2013. Currency rate changes cut Net sales by
EUR 99.9 million.

Gross sales growth by target markets

Growth% % of total % of total
sales in sales in
2014 2013
Nordic countries 1.2 40.3 35.8
Russia and CIS -33.0 25.5 34.2
Other Europe -2.0 24.4 22.4
North 16.8 9.1 7.0
America

Net sales growth by business units

Growth% % of total % of total
sales in sales in
2014 2013
Passenger Car Tyres -11.8 68.4 71.1
Heavy Tyres -0.4 10.2 9.4
Vianor 0.7 21.5 19.5

Raw material cost (EUR/kg) in manufacturing decreased by 16.5% year-over-year.
Fixed costs amounted to EUR 400.0 million (410.0), accounting for 28.8% (27.0%)
of Net sales. Total salaries and wages were EUR 195.4 million (189.6).

Nokian Tyres Group's Operating profit amounted to EUR 308.7 million (385.5). The
Operating profit was affected by the IFRS 2 -compliant option scheme write-off
of EUR 9.6 million (13.2) and expensed credit losses and provisions of EUR 8.8
million (14.3).

Net financial expenses were EUR 47.5 million (72.7). Net interest expenses were
EUR 16.7 million (38.5). Net financial expenses include EUR 30.8 million (34.2)
of exchange rate differences.

Profit before tax was EUR 261.2 million (312.8). Profit for the period amounted
to EUR 208.4 million (183.7), and EPS were EUR 1.56 (EUR 1.39).

Return on net assets (RONA, rolling 12 months) was 18.3% (20.2%). Income
financing after the change in working capital, investments and the disposal of
fixed assets (Cash flow from operations) improved by EUR 132.6 million and was
EUR 458.3 million (325.6).

Investments

Investments in the review period amounted to EUR 80.6 million (125.6). This
comprised of production investments in the Russian and Finnish factories, moulds
for new products and the Vianor expansion projects.

Financial position on 31 December 2014

Gearing ratio was -13.6% (-4.1%). Interest-bearing net debt amounted to EUR
-164.6 million (-56.4). Equity ratio was 67.5% (67.6%).

The Group’s interest-bearing liabilities totalled EUR 275.2 million (368.1) of
which current interest-bearing liabilities amounted to EUR 0.6 million (182.3).
The average interest rate of interest-bearing liabilities was 3.6% (4.7%).
Convertible bond of EUR 150 million, issued 2007, matured on 27 June 2014. Cash
and cash equivalents amounted to EUR 439.9 million (424.6).

At the end of 2014 the company had unused credit limits amounting to EUR 606.5
million (656.6) of which EUR 255.7 million (305.8) were committed. The current
credit limits and the commercial paper program are used to finance inventories,
trade receivables, and subsidiaries in distribution chains, and thus control the
typical seasonality in the Group’s cash flow due to changes in the working
capital.

Group’s Total comprehensive income was negatively affected by translation
differences on foreign operations by EUR 202.1 million. Total comprehensive
income for the period amounted to EUR 4.4 million.

Tax rate

The Group’s tax rate was 20.2% (41.3%) in 2014. Tax rate excluding the
additional taxes was 16.4%. The tax rate was positively affected by tax
incentives in Russia based on present investments and further investment-related
incentive agreements. The new agreed tax benefits and incentives came into force
in the beginning of 2013. The agreement will prolong the benefits and incentives
until approximately 2020.

Nokian Tyres U.S. Finance Oy, a subsidiary of Nokian Tyres plc (ownership 100%
of shares), received in April 2014 a reassessment decision from the Finnish Tax
Administration, according to which the company is obliged to pay EUR 11.0
million additional taxes with punitive tax increases and interests concerning
tax years from 2008 to 2012. From the amount EUR 7.9 million is additional taxes
and EUR 3.1 million punitive tax increases and interests. The company has
recorded them in full to the financial statement and result of year 2014.

Large Taxpayers’ Office carried out a tax audit concerning the Finnish Business
Tax Act, where the Tax Administration raised an issue about the restructuring of
the sales company and acquisitions of Nokian Tyres Group in North America
totally ignoring the business rationale and corresponding advance rulings
presented by the company.

Nokian Tyres U.S. Finance Oy considers the reassessment decision of the Tax
Administration as unfounded and has appealed against it by leaving the claim for
rectification to the Board of Adjustment and, if necessary, the company will
continue the appeal process in the Administrative Court.

Nokian Tyres Group has another pending dispute with the Finnish Tax
Administration about EUR 100.3 million of additional taxes with punitive tax
increases and interests, concerning years 2007-2010. The company has recorded
the total sum in full in the financial statement and result of year 2013.

Nokian Tyres’ viewpoint is expected to get support from a recent ruling in
Finland. In another company’s case the Finnish Supreme Administrative Court
issued on 3 July 2014 a ruling, which includes an opposite view on transfer
pricing compared to the interpretation of the Finnish Tax Administration. In the
ruling it is clear that the interpretation of the Finnish legislation could not
be extended on the basis of the OECD Transfer Pricing Guidelines.

The estimated tax rate going forward will depend on the timetable and final
result of the appeal processes against the Finnish Tax Administration. If the
claim to the Administrative Court does not lead to annulment of the tax
decisions, the Group's corporate tax rate is expected to rise in the next 5
years, from the previously announced 17 per cent to a maximum of 22 per cent.

Personnel

The Group employed an average of 4,272 (4,194) people, and 4,204 (4,170) at the
end of the year. The equity-owned Vianor tyre chain employed 1,508 (1,480)
people and Russian operations 1,326 (1,319) people at the end of the year

BUSINESS UNIT REVIEWS

Passenger Car Tyres

10- 10-
12/2014 12/13 Change% 2014 2013 Change%
Net sales, m€ 237.9 271.6 -12.4 1,003.2 1,137.0 -11.8
Operating profit, m€ 55.4 75.3 -26.4 292.2 378.5 -22.8
Operating profit, % 23.3 27.7 29.1 33.3
RONA,% (roll.12 23.5 28.2
m.)

The sales volume of Nokian car tyres was on par with the volume of 2013. Net
sales dropped 11.8% due to currency devaluations, a weaker mix and price
changes. Sales in Russia and CIS declined clearly due to a weaker sales mix,
lower ASP and lower volumes in line with general market changes triggered by
uncertainty and the Russian-Ukrainian crisis. While the sales were on the
previous year’s level in the Nordic countries and in Central Europe, sales
growth was strong in North America. The company’s market share and profitability
improved in the Nordic countries, Central Europe and North America. The market
share was up also in Russia/CIS.

The Average Selling Price decreased due to currency devaluations, a weaker sales
mix and the price pressure still prevailing in all markets. For the most part
the ASP drop results from the currency impact and secondly from the mix impact.
A small part comes from price reductions, which reflect the tight competitive
situation and reductions in material costs partly passing through to tyre
prices. Winter tyres represented 79% (79%) of sales volume, but the share of mid
segment tyres increased clearly.

Raw material costs (€/kg) were down by 17% year-over-year, which together with
improved productivity and lower fixed costs supported margins.

In autumns 2013 and 2014 Nokian tyres dominated the winter tyre tests with
several victories in Nordic and Russian car magazines. Particularly noteworthy
were the Central European winter tyre test results, which were a success for
Nokian Tyres. The new Nokian summer tyre range also won several car magazines’
tests in the core markets and in Central Europe in spring 2014. In September
2014 Nokian Tyres introduced five new SUV summer tyres and a renewed van tyre
selection. These special products that are tailored for the growing SUV segment
are aimed at the company's main markets in the Nordic countries, Central Europe,
and Russia.

The annualized capacity of the Finnish and Russian factories amounts to over 20
million tyres, with shift arrangements. In 2014 the capacity was not fully
utilized, but production output (pcs) increased by 4.3% and productivity (kg/mh)
improved by 5.1% year-over-year. In 2014, 80% (82%) of Nokian car tyres (pcs)
were manufactured in the Russian factory.

Heavy Tyres

10- 10- Change% 2014 2013 Change%
12/2014 12/13

Net sales, m€ 41.0 40.0 2.6 149.1 149.7 -0.4
Operating profit, m€ 7.8 5.6 39.9 24.6 20.4 20.7
Operating profit, % 18.9 13.9 16.5 13.6
RONA, % (roll.12 22.9 17.7
m.)

Demand exceeded Nokian Heavy Tyres’ delivery capacity in some product groups in
2014. Total sales were on par with 2013, with forestry tyre sales up by 15%.
Negative currency effect cut sales in euros. Average Selling Price decreased
year-over-year due to a challenging pricing environment.

Margins were supported by lower raw material cost and improved productivity.
Fixed cost decreased, thus improving profitability.

The production output (tonnes) in 2014 was up by 19.8% year-over-year, but in
the first half of the year it was not enough to meet the higher demand. A ramp
-up of the production utilization rate from year-turn 65% to in excess of 90%
has been completed during 2014. The factory modernization and automation have
already opened bottlenecks, as well as improved product quality, flexibility,
and productivity.

For Nokian truck tyres the Nordic countries and Russia continued to be the top
markets by sales value. A restructuring of the Heavy Tyres operation to include
also the Truck Tyre business unit was done in the end of 2013 and the new
organization became effective from the beginning of 2014, creating synergies in
all operations.

Vianor

Equity-owned operations

10- 10-
12/2014 12/13 Change% 2014 2013 Change%

Net sales, m€ 117.5 117.2 0.2 314.8 312.5 0.7
Operating profit, m€ 13.1 12.8 2.7 2.1 -1.8 215.6
Operating profit, % 11.2 10.9 0.7 -0.6
RONA, % (roll.12 1.2 -1.1
m.)

At the end of the review period Vianor had 189 (183) equity-owned stores in
Finland, Sweden, Norway, USA, Switzerland and Russia.

Vianor succeeded in its strategic task of expanding distribution and was able to
win market shares in a challenging market situation. Net sales improved slightly
year-over-year despite some unfavourable currency effect from SEK and NOK
against the EUR. The strongest sales growth was recorded in car services and car
spare parts. In local currencies Norway showed the strongest sales growth among
target countries. Retail sales formed 52% of Vianor’s total sales.

Vianor’s investments decreased year-over-year. At the end of 2014 trade
receivables and inventories were below previous year. Operating result improved
and was positive.

The gradual change of operating model from tyre sales to full car service in the
stores continues with investments and local acquisitions of car service shops.
At the end of 2014 a total of 56 car service operations have been acquired and
integrated with existing Vianor stores in the Nordic countries. Service sales
increased by 6%, including car service sales growth of 23%. Results of a
continuous customer satisfaction survey improved year-over-year.

Franchising and partner operations

Vianor expanded the retail network in Nokian Tyres’ key markets by 149 stores
during 2014. At the end of 2014 the Vianor network comprised of totally 1,355
stores of which 1,166 were partners. Vianor operates in 27 countries; most
extensively in the Nordic countries, Russia and Ukraine. Nokian Tyres’ market
shares have improved as a result of the expansion in each respective country.
Expanding the partner franchise network will continue.

A softer partner franchise model, Nokian Tyres Authorized Dealers (NAD),
expanded in 2014 by 437 stores totalling 869 stores contracted in 14 Central
European countries and China. N-Tyre, a new Nokian Tyres partner network, is
operating with 53 stores in Russia and Kazakhstan.

SPECIAL REVIEWS

Russia and the CIS countries

Nokian Tyres’ sales in 2014 in Russia decreased year-over-year by 30.1% to EUR
363.4 million (520.1). Sales in the CIS countries (excluding Russia) were EUR
23.2 million (56.6), Ukrainian sales being hit hard by the crisis situation.
Consolidated sales in Russia and CIS decreased by 33.0% to EUR 386.7 million
(576.7). The decrease of sales value relates mostly to currencies weakening
significantly against the Euro.

Nokian Tyres managed to further improve its market share in A and B segments in
Russia, but it was achieved by increasing sales of B-segment products, resulting
in a weaker product mix and ASP.

The distribution network was extended by signing additional distribution
agreements and expanding the Vianor network by 42 stores. There were a total of
663 Vianor stores in 368 cities in Russia and CIS countries at the end of 2014.
The Hakka Guarantee network and other retail partners working closely with
Nokian Tyres in Russia comprised of 3,600 tyre stores, Vianor shops, car
dealers, and web shops. During 2014, Nokian Tyres launched a new franchising
concept of a tyre shop – N-Tyre, with the total amount of opened shops reaching
53 by year-end. The new concept enables more retail partners to develop close
cooperation with Nokian Tyres, as it implies somewhat softer requirements
towards the format, setup and equipment of a tyre shop compared to the flagship
Vianor chain.

The Nokian Tyres plant located in Russia inside the customs borders combined
with strong brands and an expanding distribution provides a significant
competitive edge on the market. Nokian Tyres will continue to target
outperforming the market in Russia also in 2015, but the current market
situation implies declined sales volume against the clearly falling market.

By Russia joining WTO, tyre duties will go down gradually; import duty of car
and van tyres has decreased from 18% to 16% in September 2014 and the official
target is 10% in 2017.

OTHER MATTERS

1. Stock options on the NASDAQ Helsinki Stock Exchange

The total number of stock options 2010A was 1,320,000. Each stock option 2010A
entitled its holder to subscribe for one Nokian Tyres plc share. It was possible
to subscribe shares with the stock options 2010A during 1 May 2012 - 31 May
2014. The last share subscription price with stock options 2010A was EUR
13.39/share. The dividends payable annually were deducted from the share
subscription price.

The total number of stock options 2010B is 1,340,000. Each stock option 2010B
entitles its holder to subscribe for one Nokian Tyres plc share. The shares can
be subscribed with the stock options 2010B during 1 May 2013 - 31 May 2015. The
present share subscription price with stock options 2010B is EUR 28.80/share.
The dividends payable annually shall be deducted from the share subscription
price.

The total number of stock options 2010C is 1,340,000. Each stock option 2010C
entitles its holder to subscribe for one Nokian Tyres plc share. The shares can
be subscribed with the stock options 2010C during 1 May 2014 - 31 May 2016. The
present share subscription price with stock options 2010C is EUR 32.40/share.
The dividends payable annually shall be deducted from the share subscription
price.

2. Shares subscribed with option rights

After 13 December 2013 registered new shares a total of 57,595 Nokian Tyres
plc's shares have been subscribed with the 2010A option rights and 40 shares
with the 2010B option rights. New shares have been registered into the Trade
Register on 19 February 2014, as of which date the new shares have established
shareholder rights. The share capital will not increase with subscriptions made
by 2010 option rights. The entire subscription price of EUR 855,919.80 was
entered in the invested unrestricted equity reserve. As a result of the share
subscriptions, the number of Nokian Tyres plc shares increased to 133,344,731
shares.

After 19 February 2014 registered new shares a total of 60 760 Nokian Tyres
plc's shares have been subscribed with the 2010A option rights and 120 shares
with the 2010B option rights. New shares have been registered into the Trade
Register on 15 May 2014, as of which date the new shares have established
shareholder rights. The share capital will not increase with subscriptions made
by 2010 option rights. The entire subscription price of EUR 818,808.65 was
entered in the invested unrestricted equity reserve. As a result of the share
subscriptions, the number of Nokian Tyres plc shares increased to 133,405,611
shares.

After 15 May 2014 registered new shares a total of 65,222 Nokian Tyres plc's
shares have been subscribed with the 2010A option rights. These option rights
are attached to the Nokian Tyres plc's Option Program of 2010. The subscription
time with the 2010A option rights ended on 31 May 2014. New shares have been
registered into the Trade Register on 20 August 2014, as of which date the new
shares have established shareholder rights. The share capital will not increase
with subscriptions made by 2010 option rights. The entire subscription price of
EUR 873,322.58 was entered in the invested unrestricted equity reserve. As a
result of the share subscriptions, the number of Nokian Tyres plc shares
increased to 133,470,833 shares.

3. Authorizations

Year 2013 Annual General Meeting of Shareholders authorized the Board of
Directors to resolve to repurchase a maximum of 300,000 shares in the Company by
using funds in the unrestricted shareholders’ equity to be used for share based
incentive plan for the Group key employees. It was proposed that the
authorization be effective until the 2014 Annual General Meeting of
Shareholders, however, at most until 11 October 2014.

4. Own shares

No share repurchases were made in 2014, and the company did not possess any own
shares on 31 December 2014.

Nokian Tyres has entered into an agreement with a third-party service provider
concerning the share-based incentive program for key personnel. The third party
owns the shares until the shares are given to the participants within the
program.

5. Trading of shares

The Nokian Tyres’ share price was EUR 20.29 (EUR 34.87) at the end of the review
period. The volume weighted average share price during the period was EUR 26.74
(EUR 34.11), the highest EUR 36.19 (EUR 38.72) and the lowest EUR 18.82 (EUR
29.85). A total of 216,446,904 shares were traded during the period
(127,823,377), representing 162% (96%) of the company's overall share capital.
The company’s market value at the end of the period amounted EUR 2.708 billion
(EUR 4.648 billion). The amount of shareholders was 50,142 (32,306). The
percentage of Finnish shareholders was 39.1% (35.7%) and 60.9% (64.3%) were
foreign shareholders registered in the nominee register. This figure includes
Bridgestone's ownership of approximately 15%.

6. Changes in ownership

Nokian Tyres received a notification from EuroPacific Growth Fund on 19 February
2014, according to which the total holding of EuroPacific Growth Fund in Nokian
Tyres plc exceeded 5% as a result of a share transaction concluded on 18
February 2014.

Nokian Tyres received an announcement from Bridgestone Corporation on 16 May
2014, according to which Bridgestone’s ownership of Nokian Tyres plc decreased
below the level of 15%. As a result of the registration of shares subscribed
with the 2010A and 2010B option rights on 15 May 2014, the number of Nokian
Tyres’ shares increased to 133,405,611. After the increase, the ownership of
Bridgestone Corporation (20,000,000 shares) decreased below the level of 15% to
14.99% of shares and voting rights.

Nokian Tyres received a notification from EuroPacific Growth Fund on 25 July
2014, according to which the total holding of EuroPacific Growth Fund in Nokian
Tyres plc fell below 5% as a result of a share transaction concluded on 23 July
2014.

Nokian Tyres has received a notification from Sprucegrove Investment Management
Ltd. on 22 December 2014, according to which the total holding of Sprucegrove
Investment Management Ltd. in Nokian Tyres plc exceeded 5% and rose to 5.04% as
a result of a share transaction concluded on 19 December 2014.

7. Decisions made at the Annual General Meeting

On 8 April 2014, Nokian Tyres Annual General Meeting accepted the financial
statements for 2013 and discharged the Board of Directors and the President and
CEO from liability.

7.1. Dividend

The meeting decided that a dividend of EUR 1.45 per share shall be paid for the
period ending on 31 December, 2013. The dividend was paid to shareholders
included in the shareholder list maintained by Euroclear Finland Ltd on the
record date of 11 April 2014. The dividend payment date was decided to be 25
April 2014.

7.2. Members of the Board of Directors and Auditor

The meeting decided that the Board of Directors has seven members. Current
members Kim Gran, Hille Korhonen, Risto Murto, Hannu Penttilä and Petteri
Walldén will continue in the Board of Directors. Two new members were chosen to
the Board: Mr Raimo Lind and Ms Inka Mero. Authorised public accountants KPMG Oy
Ab continue as auditors.

7.3. Remuneration of the Members of the Board of Directors

The meeting decided that the fee paid to the Chairman of the Board is EUR 80,000
per year, while that paid to Board members is set at EUR 40,000 per year. With
the exception of the President and CEO, members of the Board are also granted an
attendance fee of EUR 600 per Board or committee meeting.

In addition, 50% of the annual fee be paid in cash and 50% in company shares,
such that in the period from 9 April to 30 April 2014, EUR 40,000 worth of
Nokian Tyres plc shares were purchased at the stock exchange on behalf of the
Chairman of the Board and EUR 20,000 worth of shares on behalf of each Board
member. This means that the final remuneration paid to Board members is tied to
the company’s share performance. No separate compensation will be paid to the
President and CEO for Board work.

8. Committees of the Board of Directors

In the Board meeting on 8 April 2014 the members for two committees were
decided. The members of the Nomination and Remuneration committee are Petteri
Walldén (chairman), Hille Korhonen and Hannu Penttilä. The members of the Audit
committee are Raimo Lind (chairman), Inka Mero and Risto Murto.

9. Corporate social responsibility

Nokian Tyres published its Corporate Sustainability Report in June 2014. The
renewed report, which was implemented according to the revised GRI G4
guidelines, has been published as a web version at
www.nokiantyres.com/company/sustainability. In addition to product safety and
quality, profitable growth, good HR management, and environmental issues are
important for the development of sustainable business operations in Nokian
Tyres.

Nokian Tyres plc is qualified to the OMX GES Sustainability Finland GI index.
The index is designed to provide investors with a liquid, objective and reliable
benchmark for responsible investment. The benchmark index comprises of the 40
leading NASDAQ Helsinki listed companies in terms of sustainability. The index
criteria are based upon international guidelines for environmental, social and
governance (ESG) issues. The index is calculated by NASDAQ in cooperation with
GES Investment Services.

10. Forming of the new Heavy Tyres profit centre as of 1st January 2014

Nokian Tyres integrated the Heavy Tyres and Truck Tyres profit centers and
formed a new profit centre as of 1st January 2014. The integration of two
business units’ resources, operations and management is expected to improve
sales and profitability. The new unit employs about 280 people in Nokia,
Finland.

11. New financial guidance on 3 April 2014

With a Stock exchange release on 3 April 2014 Nokian Tyres announced that in
2014, Net sales and Operating profit are to decline compared to 2013. It was
explained that the clearly devalued Rouble has hurt Russian economy and the
purchasing power of Russian consumers, thus weakening tyre demand and Nokian
Tyres’ sales in Russia. Nokian Tyres estimated growth in 2014 in all its western
markets: Nordic countries, Central Europe and North America.

12. Ari Lehtoranta appointed new President and CEO of Nokian Tyres

The Board of Directors of Nokian Tyres announced on 27 May 2014 that it has
appointed Mr. Ari Lehtoranta, 51, M.Sc. (Eng.), as the new President and Chief
Executive Officer of Nokian Tyres plc. He started in Nokian Tyres on 1 September
2014 and as President and CEO on 1 October 2014.

Nokian Tyres’ former President and CEO Kim Gran continued in his position until
30 September 2014 and then used his option to retire. Gran had been leading the
company since 1 September 2000. He continues as a member of the Board of
Directors of Nokian Tyres.

13. Nokian Tyres introduced five new SUV summer tyres and a renewed van tyre
selection on 1st September 2014

The company is growing its product selection by five new SUV tyres. Its ever
-expanding SUV product selection is the most modern on the market, utilising
aramid fibre that is also employed by the aviation and military industries. The
extremely strong sidewall structure provides much-needed durability and safety
for demanding road conditions and unexpected situations.

Combined with precise handling, the unique durability provides exceptional
driving pleasure to drivers of powerful SUVs. These special products that are
tailored for the growing SUV segment are aimed at the company's main markets in
the Nordic countries, Central Europe, and Russia.

14. Adjustments to production in the Finnish factory

The statutory negotiations at Nokian Tyres’ Finnish factory concerning workers
and staff in car tyre production, maintenance and quality departments ended on 9
October 2014. Adjustments to production capacity utilization as well as cost
savings will be achieved mainly with temporary lay-offs and transfers to new
positions. In addition, a pension plan for two employees comes into effect.

The car tyre production will be cut through temporary lay-offs by not more than
21 production days during 2014, and by a maximum of 38 production days in 2015,
subject to the market situation.

The Nokian Tyres’ Finnish factory has approximately 570 workers and staff in the
car tyre production.

15. State-of-the-art green winter tyre technology for electric cars: The world's
first winter tyre with an A energy rating by Nokian Tyres

On 11 December 2014 Nokian Tyres announced that it has developed the most energy
efficient winter tyre model in the automotive industry. The new Nokian
Hakkapeliitta R2 is a genuine non-studded winter tyre designed for BMW's unique
i3 electric car, and it combines extremely low rolling resistance, first-class
grip, and exceptional driving comfort. According to tests, the Nokian
Hakkapeliitta R2 can reduce the rolling resistance of electric vehicles even
30%. The energy savings gained from the lower rolling resistance increase the
vehicle's range.

According to the EU tyre label, the rolling resistance of the new model is in
class A; this has not been achieved by any winter tyre before. The rolling
resistance of competitors is in class C and E.

RISKS, UNCERTAINTY AND DISPUTES IN THE NEAR FUTURE

Russia and CIS consolidated sales formed 26% of the group’s total sales in 2014.
Due to the oil price levelling off, high interest rates, slow investments, and
the prolonged Ukraine crisis, the growth in Russia is expected to be weak in
2015, with GDP growth estimated currently from -3% to -8%. Roughly 80% of
present Nokian production volume of car tyres is in Russia. So far trade
barriers by USA and the EU against Russia have to date had little to no effect
on Nokian Tyres’ operations in Russia. The indirect effects have gradually
emerged in the form of weaker consumer purchasing power, and the product mix
shifting to cheaper products in Russia and Ukraine. An escalation or
prolongation of the Ukrainian crisis and additional trade barriers may have
further negative effects on the company’s sales and results. All in all the
economic uncertainties may further weaken future demand for tyres and increase
credit risk.

The company’s receivables decreased in 2014. Tyre inventories are on a planned
level. The company follows the development of NWC very closely. At the end of
2014 Russian trade receivables accounted for 33.0% (35.6%) of the Group’s total
trade receivables.

Around 40% of the Group’s Net sales in 2015 are estimated to be generated from
Euro-denominated sales. The most important sales currencies in addition to the
Euro are the Russian Rouble, the Swedish and Norwegian Krona, and the US Dollar.

Nokian Tyres’ other risks and uncertainty factors relate to the challenging
pricing environment of tyres. The maintaining of profitability in case of rising
raw material prices depends on the company’s ability to raise tyre prices in
line with the increasing raw material cost.

Tax disputes

Nokian Tyres Group has a pending dispute with the Finnish Tax Administration
about EUR 100.3 million of additional taxes with punitive tax increases and
interests, concerning years 2007-2010. The Company has recorded the total sum in
full in the financial statement and the result of year 2013. The Company has
applied for and received a stay of execution from the Finnish Tax Administration
and therefore additional taxes are not paid.

Nokian Tyres considers the reassessment decisions of the Tax Administration to
be incorrect and has appealed against them by leaving the claim for
rectification to the Board of Adjustment. If necessary, the Company will
continue the appeal process in the Administrative Court. The Company will also,
if needed, start a process with the competent authorities to negotiate for the
elimination of the double taxation. The Company has initiated a separate process
to determine the legality of the procedures used in the tax audit by Tax
Administration and tax inspectors.

OUTLOOK FOR 2015

In January 2015, the ECB announced to begin 1.2 trillion-euro quantitative
easing program, which is expected to improve the economic activity in Europe.
Even though many of the emerging economies are currently weak and geopolitical
risks have remained, the global GDP is estimated to grow by 3.8% in 2015.

The Nordic countries area is estimated to show slow but comparatively stable
development with a full year 2015 GDP growth of 2%. In Russia the consumer
spending has been held back by the devalued Rouble combined with high inflation
and interest rates. Full year 2015 GDP growth estimates for Russia vary
currently between -3% and -8%.

In 2015 market demand for replacement car tyres is expected to show growth in
Central Europe and North America, and to be on the previous year’s level in the
Nordic countries. In Russia and CIS the overall uncertainty will decrease tyre
demand in 2015.

The company’s market position is expected to improve in 2015 in all core
markets: Nordic countries, Russia and CIS, Central Europe and North America. In
western markets the sales volume (pcs) growth of Nokian Tyres is expected to
outperform the tyre market growth. In Russia and CIS the company’s sales volume
is expected to decline. Nokian Tyres’ Net sales are expected to decrease due to
weakened demand and currency in Russia. The pricing environment for 2015 remains
tight for all tyre categories.

Nokian Tyres continues to have competitive advantages from having manufacturing
inside Russia. Of the Russian production approximately 60% is exported and the
margin between production costs in Roubles and export sales in Euros has
improved along with the Rouble devaluation. In the case of demand upturn, Nokian
Tyres’ car tyre production capacity in Russia offers an inbuilt capability to
increase output rapidly without capex, to meet market growth.

Raw material cost is estimated to decrease by 5%. This is not enough to fully
compensate for the weaker market conditions in Russia and CIS.

Heavy tyre demand in Nokian core products is estimated to remain healthy. Nokian
Heavy Tyres’ delivery capability has improved, and therefore sales and EBIT are
expected to continue to gradually improve.

Vianor is expected to continue expanding its retail network, to increase sales,
to develop service business further and to show a positive Operating result in
full year 2015. Other Nokian Tyres’ partner networks, like Nokian Tyres
Authorized Dealers (NAD) and N-Tyre network, will continue expanding.

Nokian Tyres’ estimate for total investments in 2015 is EUR 100 million (80.6).

The competitiveness of Nokian Tyres’ product offering is very strong. The number
of magazine test wins is at highest level and a series of successful launches of
new innovative products has resulted in a wider portfolio than ever before. A
strong position in the core markets, an expanding distribution channel, and an
improved cost structure combined with new test winner products give Nokian Tyres
opportunities to strengthen its market leadership in the core markets and to
provide healthy margins and a strong cash flow also in 2015.

Financial guidance

Nokia, 5 February 2015

Nokian Tyres plc

Board of Directors

***

The above-said information contains forward-looking statements relating to
future events or future financial performance of the company. In some cases,
such forward-looking statements can be identified by terminology such as ”may”,
”will”, ”could”, ”expect”, ”anticipate”, ”believe” ”estimate”, ”predict”, or
other comparable terminology. Such statements are based on the current
expectations, known factors, decisions and plans of the management of Nokian
Tyres. Forward-looking statements involve always risks and uncertainties,
because they relate to events and depend on circumstances that may or may not
occur in the future. Future results may thus vary even significantly from the
results expressed in, or implied by, the forward-looking statements.

Read the whole Financial Statement Bulletin 2014 www.nokiantyres.com

Nokian Tyres plc

Antti-Jussi Tähtinen, Vice President, Marketing and Communications

Further information: Mr. Ari Lehtoranta, President and CEO, tel: +358 10 401
7733

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

*****

Nokian Tyres Financial Statement Bulletin 2014 was published on Thursday 5
February, 2015 at 8.00 a.m. Finnish time.

The result presentation for analysts and media will be held in Hotel Kämp in
Helsinki at 10.00 a.m. Finnish time. The presentation can be listened through
audiocast via internet at
(http://www.nokiantyres.com/Resultinfo2007)www.nokiantyres.com/resultinfo2014

To be able to ask questions during the event you can participate in the
conference call. Please dial in 5-10 minutes before the beginning of the event:

Finland: +358 9 8171 0465

UK: +44 203 194 0550

US: +1 855 269 2605

Stock exchange release and presentation material will be available before the
event from http://www.nokiantyres.com/ir-calendar

After the event the audio recording can be downloaded from the same page.

Nokian Tyres Interim Report 1-3/2015 will be published on 8 May, 2015.

Releases and company information will be found from http://www.nokiantyres.com
Nokian Tyres is the only tyre manufacturer in the world that focuses on customer
needs in northern conditions. The company supplies innovative tyres for cars,
trucks and special heavy machinery mainly in areas with special challenges on
tyre performance: snow, forests and harsh driving conditions in different
seasons. Nokian Tyres’ product development is consistently aiming for
sustainable solutions for safety and the environment, taking into account the
whole life cycle of the tyre. A part of the Nokian Tyres group, the tyre chain
Vianor has 1,355 outlets in 27 countries. In 2014 Nokian Tyres had over 4,200
employees and net sales of 1,4 billion euros. Nokian Tyres’ share is listed on
the NASDAQ OMX Helsinki. Further information: www.nokiantyres.com

Market share gains and improvements in operations mitigate the impact of the weak Russian economy. Strong cash flow enables stable dividends.

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