Nokian Tyres plc Stock exchange bulletin 9 May 2007 at 9:00 a.m.
INTERIM REPORT FOR NOKIAN TYRES PLC JANUARY - MARCH 2007
New products and Russia accelerated growth
The Group's net sales were up by 33.8% to EUR 199.9 million (Q1/2006: EUR 149.4
million). Operating profit improved considerably and amounted to EUR 39.0
million (EUR 13.4 million). EPS increased to EUR 0.23 (0.06). Net sales of all
profit centres were up, and operating profit improved. In 2007, the company is
positioned to achieve strong sales growth and to outperform the year 2006 in
line with the previous years.
Key figures (EUR million):
Q1/07 Q1/06 Q2/06 Q3/06 Q4/06 1-12
2006
Net sales 199.9 149.4 200.0 184.5 302.0 835.9
Operating profit 39.0 13.4 35.1 37.0 67.5 153.1
Profit before taxes 35.6 10.1 31.9 35.8 61.5 139.3
Profit for the period 28.1 7.0 24.9 27.5 48.0 107.3
Earnings per share, EUR 0.23 0.06 0.20 0.23 0.39 0.88
Equity ratio, % 59.9 58.0 63.0
Cash flow from -103.7 -64.7 -27.1 -73.3 242.8 77.7
Operations,(Cash Flow II)
RONA% (rolling 12 months) 21.9 17.0 19.4
Gearing, % 40.8 41.0 22.8
Kim Gran, President and CEO:
“Nokian Tyres outperformed clearly the first quarter of the previous year: net
sales were up and operating profit improved in all profit centres in key market
areas. Russia accounted for most of the sales growth, but sales also picked up
in the Nordic countries and Eastern Europe. Passenger car tyre sales mainly
consisted of winter tyres. Summer tyre sales were stronger than a year ago.
Sales was boosted by the Nokian Hakka summer tyre family, which was available
for the consumers for the first time. As a result of the good sales mix,
successfully implemented price increases, and new products, the average price
increased. Benefits gained from the manufacture in Russia improved
profitability. Outlook for the year 2007 is good and growth will continue, but
at a more moderate pace than in the first quarter.
Market situation
The replacement markets of passenger car tyres in Russia, the CIS countries and
Eastern Europe grew from the previous year. The Nordic tyre markets grew
slightly. The winter tyre, SUV tyre and high-speed summer tyre markets accounted
for the strongest growth. Demand for winter tyres was brisk in the first
quarter. Consumer sales of summer tyres in the Nordic countries began, but the
main season is in the second quarter. The demand for heavy special tyres and
truck tyres continued to be strong. Several tyre manufacturers raised the prices
in response to the increase in the raw material prices.
NET SALES AND PROFIT
In the January to March period, the Nokian Tyres Group recorded net sales of EUR
199.9 million (EUR 149.4 million), showing an increase of 33.8% on the
corresponding period a year earlier. Compared with the previous year, the
Group's net sales increased by 20.5% in the Nordic countries, by 74.1% in Russia
and the CIS countries, by 125.4% in Eastern Europe, and decreased by 18.6% in
North America.
Raw material prices in manufacturing increased by 8% in the first quarter
compared to the corresponding period a year earlier. At EUR 62.3 million (EUR
54.6 million), fixed costs accounted for 31.2% (36.6%) of net sales.
Nokian Tyres Group's operating profit rose to EUR 39.0 million (EUR 13.4
million). The planned costs associated with the development of Russian business
and manufacturing operations, as well as the IFRS 2-compliant write-off of EUR
1.6 million (EUR 1.9 million), incurred from the option scheme taxed the
results. Net financial expenses were EUR 3.4 million (EUR 3.4 million).
Profit before taxes was EUR 35.6 million (EUR 10.1 million). Profit for the
period amounted to EUR 28.1 million (EUR 7.0 million) and EPS were EUR 0.23 (EUR
0.06).
Return on net assets (RONA, rolling 12 months) was 21.9% (17.0%). Income
financing after the change in working capital, investments and the disposal of
fixed assets (Cash flow II) was EUR -103.7 million (EUR -64.7 million). Equity
ratio was 59.9% (58.0%).
The Group's cash flow decreased due to the increase in receivables, resulting
from the sales growth, higher inventory values and investments.
The Group employed an average of 3,397 (3,124) people, and 3,513 (3,145) at the
end of the period. The Vianor tyre chain employed 1,372 (1,243) people. In
Russia the amount of personnel rose to 376 (264) people.
PASSENGER CAR TYRES
Q1/07 Q1/06 Change,% Q2/06 Q3/06 Q4/06
Net sales, MEUR 141.4 101.8 38.9 120.3 122.1 189.0
Operating profit, MEUR 41.6 18.9 119.8 26.8 35.2 52.4
Operating profit, % 29.4 18.6 22.3 28.8 27.7
RONA, % 27.4 21.2 21.2 22.2 24.6
(rolling 12 months)
The net sales from Nokian passenger car tyres were up by 38.9% on the previous
year to EUR 141.4 million (EUR 101.8 million). Operating profit amounted to EUR
41.6 million (EUR 18.9 million), and the operating profit percentage was 29.4%
(18.6%).
Summer and winter tyres for passenger cars sold very well in the key markets and
especially in Russia. Sales focused on winter tyres. Nokian Hakkapeliitta 5 and
Nokian Hakkapeliitta SUV 5 tyres accounted for the largest sales growth. The
launch of the Nokian Hakka summer tyre family boosted summer tyre sales.
As a result of the good sales mix, new products and implemented price increases,
the average tyre prices increased from the previous year.
The production volume rose due to the planned capacity increase at the Russian
plant. Benefits gained from the Russian manufacture improved profitability.
HEAVY TYRES
Q1/07 Q1/06 Change,% Q2/06 Q3/06 Q4/06
Net sales, MEUR 25.6 21.9 16.9 23.3 20.5 24.4
Operating profit, MEUR 6.1 5.5 11.7 5.4 4.4 4.6
Operating profit, % 23.8 24.9 23.3 21.7 18.8
RONA, % 38.9 36.8 41.1 41.8 39.0
(rolling 12 months)
The net sales of Nokian Heavy Tyres grew to EUR 25.6 million (EUR 21.9 million),
showing an increase of 16.9% on the corresponding period a year earlier.
Operating profit rose to EUR 6.1 million (EUR 5.5 million), and the operating
profit percentage was 23.8% (24.9%).
Strong sales growth continued in all of the Heavy Tyres unit's product groups
and in all key markets, both in the original equipment installation and
replacement markets. A price increase during the early year combined with a good
salesmix resulted in a higher average price.
Although the production capacity was in full use and production volumes
increased significantly from the previous year, the unit did not have sufficient
delivery capacity to respond to the high market demand.
VIANOR
Q1/07 Q1/06 Change,% Q2/06 Q3/06 Q4/06
Net sales, MEUR 46.0 34.1 34.7 64.9 50.9 96.9
Operating profit, MEUR -5.7 -8.8 34.9 4.5 -1.7 8.3
Operating profit, % -12.5 -25.8 6.9 -3.3 8.6
RONA, % 4.18 3.3 1.0 2.0 1.8
(rolling 12 months)
Vianor's net sales were EUR 46.0 million (EUR 34.1 million), an increase of
34.7% on the corresponding period of the previous year. Operating result
amounted to EUR -5.7 million (EUR -8.8 million), and the operating profit
percentage was -12.5% (-25.8%).
Vianor's sales improved clearly in all markets and in all product and customer
groups. Operating result improved from the first quarter a year earlier. Strong
growth could be attributed to the successful pre-sales of winter tyres, which
supported the tyre wholesale restocking during the winter. In Sweden, summer
tyre season sales began during the period while in the other Nordic countries
the main season started in the second quarter. In addition, new and retreaded
truck tyres and heavy tyres sold better than in the previous year. Development
of the fast fit service concept paid off, and the services gained a larger share
of sales and improved sales profitability.
The Vianor network expanded in Sweden and in Russia, and clientele grew in
Norway. In the end of the period in review Vianor had a total of 271 outlets of
which 104 were partner and franchising outlets.
OTHER OPERATIONS
Truck Tyres
Although the EUR 4.5 million (EUR 4.8 million) net sales of Nokian Truck Tyres
showed a decrease of 6.5% on the previous year, the comparable net sales
increased. The unit's net sales are not comparable with the previous year
because, as of the beginning of 2007, it only includes the sales of new truck
tyres and retreading materials. The net sales generated by the Group's own
retreading business are consolidated into the Vianor tyre chain.
New truck tyres generated the majority of sales growth. Sales of retreading
materials remained on the previous year's level.
The unit's product range mainly consists of winter products, which do not sell
very well at the beginning of the year due to the seasonal nature of operations.
Most of the sales and profit are generated in the second half of the year.
RUSSIA
During the period under review, sales in Russia and in the CIS countries
increased by 74.1% compared to previous year, and the market shares improved.
The distribution network was extended by signing distribution agreements and
through Vianor outlets.
The three production lines of the Russian plant operated continuously in three
shifts, and the plant's production volume and quality level were on target. The
installation of the fourth production line will begin in the summer 2007.
On 15 February 2007, the Board of Directors of Nokian Tyres decided to launch
the extension and capacity increase measures at the Russian plant, which will
more than double the production volume of the Vsevolozhsk plant. The objective
is to reach a production volume of 10 million tyres by 2011.
An extension of 32,500 square metres will be built adjacent to the existing
plant, which has a capacity of four million tyres. The extension will enable the
planned increase in production volume. Earth construction work began in March
2007 and the completion of the extension will take place in the beginning of
2008. Equipment and machinery installation will start early 2008. The objective
is to raise the capacity gradually every year in order to keep up with the
increase in demand. The project will require a total investment of about EUR 195
million between 2007 and 2010 with EUR 66 million required in 2008. By the end
of 2006, a total of EUR 137 million had been invested in the plant.
INVESTMENTS
Investments during the period under review amounted to EUR 30.2 million (EUR
14.7 million). The company's total investments in 2007 are approximately EUR 110
million (EUR 97 million), and some EUR 62 million (EUR 60 million) will be spent
on the Russian plant's operations and extension. Other investments include
production investments at the Nokia plant, moulds for new products, and business
acquisitions associated with Vianor's growth plans.
OTHER MATTERS
1. Stock options on the Main List of the Helsinki Stock Exchange
The Board of Directors of Nokian Tyres plc has decided to apply for the listing
of stock options 2004B on the Helsinki Stock Exchange effective as of 1 March
2007. There are a total of 245,000 2004B stock options. Each stock option 2004B
entitles the holder to subscribe for ten Nokian Tyres plc shares. The shares can
be subscribed with the stock options 2004B between 1 March 2007 and 31 March
2009. No more than 2,450,000 shares may be subscribed for with the stock options
2004B. The current subscription price with stock options 2004B is EUR
11.649/share. The annually paid dividends shall be deducted from the share
subscription price.
2. Shares subscribed for with stock options
After the increase in share capital registered on 21 August 2006, a total of
39,550 shares were subscribed for with the 2001A stock options under Nokian
Tyres' Option Schemes of 2001 and 2004, 104,100 shares with the 2001B options,
143,340 shares with the 2001C options, and 127,350 shares with the 2004A
options. The resulting increase of EUR 82,868 in share capital was entered into
the Trade Register on 12 January 2007. Trading of these shares together with the
old shares began on 15 January 2007. The total number of Nokian Tyres shares
after the increase is 122,466,610, and the share capital is EUR 24,489,322.
After January 12, 2006 registered increase in share capital a total of 38,400
Nokian Tyres plc's shares have been subscribed with the 2001A option rights,
72,300 with the 2001B option rights, 91,600 with the 2001C option rights and
7,630 with the 2004A option rights. These option rights are attached to the
Nokian Tyres plc's Option Programs of 2001 and 2004. An increase in share
capital totalling 41,266 euros was entered into the Trade Register on February
22nd, 2007. Trading of these shares together with the old shares began February
23, 2007. The total number of Nokian Tyres shares after the increase is
122,652,940 and the share capital is EUR 24,530,588.
3. Share price development
Nokian Tyres' share price at the end of the period was EUR 20.50 (EUR 14.55).
The average share price during the period was EUR 17.02 (EUR 12.93), the highest
EUR 20.92 (EUR 14.89) and the lowest EUR 13,99 (EUR 10.74). A total of
79,826,504 shares were traded during the period (73,886,706), representing 65%
(61%) of the company's overall share capital. The company's market value at the
end of the period was EUR 2,514 billion (EUR 1,762 billion). The company's
percentage of Finnish shareholders was 34.20% (39.41%) and 65.80% (60.59%) were
foreign shareholders registered in the nominee register. This figure includes
Bridgestone's ownership of approximately 16%.
4. Decision made at the Annual General Meeting
At the Annual General Meeting of Nokian Tyres held on 3 April 2007, the
financial statements for 2006 were approved and the Board of Directors and the
President were discharged from liability. The final dividend was set at EUR 0.31
per share. The dividend matching date was set for 10 April 2007 and payment date
for 17 April 2007.
4.1 Board of Directors and auditor
The number of Board members was set at seven. Kim Gran, Rabbe Grönblom, Hille
Korhonen, Hannu Penttilä, Koki Takahashi, Aleksey Vlasov and Petteri Walldén
will continue as Board members. In a meeting held after the Annual General
Meeting, Petteri Walldén was elected Chairman of the Board.
Authorised public accountants KPMG Oy Ab continue as auditors.
4.2 Remuneration of the Board members
It was decided that the monthly fee paid to the Chairman of the Board would be
EUR 5,000 or EUR 60,000 per year, while that paid to Board members was set at
EUR 2,500 or EUR 30,000 per year. It was also decided that according to the
existing practices, 60% of the annual fee be paid in cash and 40% in company
shares to the effect that in the period from 4 April to 30 April 2007, EUR
24,000 worth of Nokian Tyres plc shares will be purchased at the stock exchange
on behalf of the Chairman of the Board and EUR 12,000 worth of shares on behalf
of each Board member. This decision 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. Each member
of the Committee will receive a meeting fee of EUR 500 for each attended
possible committee meeting.
4.3 The Board of Directors' authorisation to make a decision on a share issue
and on granting special rights entitling to shares
The Annual General Meeting authorised the Board of Directors to make a decision
to offer no more than 24,000,000 shares through a share issue or by granting
special rights under chapter 10 section 1 of the Finnish Companies Act that
entitle to shares (including convertible bonds) on one or more occasions. The
Board may decide to issue new shares or shares held by the company. The maximum
number of shares included in the authorisation accounts for approximately 20% of
the company's entire share capital. The company has one type of share with a
nominal value of EUR 0.20.
The authorisation includes the right to issue shares or special rights through
private offering, in other words to deviate from the shareholders' pre-emptive
right subject to provisions of the law.
Under the authorisation, the Board of Directors will be entitled to decide on
the terms and conditions of a share issue, or the granting of special rights
under chapter 10, section 1 of the Finnish Companies Act, including the
recipients of shares or special rights entitling to shares, and the compensation
to be paid.
It was decided that the authorisation should be exercised for purposes
determined by the Board.
The authorisation will be effective for five years from the decision made at the
Annual General Meeting. This authorisation invalidates all other Board
authorisations regarding share issues and convertible bonds.
4.4 The issue of stock options
The Annual General Meeting decided that stock options will be issued to the
personnel of the Nokian Tyres Group, as well as to a wholly-owned subsidiary of
Nokian Tyres plc. The company has a weighty financial reason for issuing stock
options, since the stock options are intended to form part of the incentive and
commitment programme for the personnel. The purpose of the stock options is to
encourage the personnel to work on a long-term basis to increase shareholder
value. The purpose of the stock options is also to commit the personnel to the
company.
The maximum total number of stock options issued shall be 6,750,000. The stock
options entitle their holders to subscribe for a maximum total of 6,750,000 new
shares in the company. The stock options now issued can be exchanged for shares
constituting a maximum total of 5.2% of the company's shares and votes of the
shares, after the potential share subscription.
The share subscription price shall be based on the prevailing market price of
the Nokian Tyres plc share on the Helsinki Stock Exchange in January—March 2007,
January—March 2008 and January—March 2009.
The share subscription period for stock options 2007A shall be 1 March 2009—31
March 2011, for stock options 2007B, 1 March 2010—31 March 2012 and for stock
options 2007C, 1 March 2011—31 March 2013.
A share ownership plan shall be incorporated to the 2007 stock options,
according to which the Group's senior management shall be obliged to acquire the
Company's shares with a proportion of the income gained from the stock options.
FUTURE RISKS AND UNCERTAINTY FACTORS
Nokian Tyres' future risks and uncertainty factors have to do with the
development of the growing markets, the success of winter tyre sales in the key
markets as well as the development of raw material prices. The Russian plant
capacity increase has been implemented as planned, but future success depends on
the availability of skilled personnel.
MATTERS AFTER THE PERIOD IN REVIEW
Nokian Tyres' Board of Directors has decided to establish Nomination and
Compensation Committee. Members of the Committee are the Board Members Ms. Hille
Korhonen and Mr. Hannu Penttilä as well as the Chairman of the Board, Mr.
Petteri Walldén.
OUTLOOK FOR THE YEAR-END
The tyre markets will remain challenging, and raw material prices are expected
to rise. Strong growth will continue in the demand for Nokian Tyres' key
products, i.e. winter tyres, UHP summer tyres and SUV tyres in the key markets
in Russia, the CIS countries and Eastern Europe. In the Nordic countries and
elsewhere in Europe the growth will be moderate. The production of forestry
machines took an upward trend during the review period and the sales forecast
for forestry tyres is positive. As for other industrial machinery, manufacture
continues at a brisk pace and there is an ongoing shortage of heavy special
tyres.
The prices of natural rubber and oil have increased and Nokian Tyres estimates
its raw material costs in manufacturing (EUR/kg) for the whole year to be about
8% higher than in 2006.
The company's product range contains a large number of new products, which,
together with an enhanced distribution network, offers opportunities for sales
growth and for achieving the targeted profit margin. Tyres manufactured in
Russia represent an increasingly large proportion of the Group's sales, which
contributes to a sustainable profit margin level.
In the Nordic countries and Russia, the objective is to increase sales and
improve market shares. More sales efforts and investments will be focused on the
CIS countries and Eastern Europe.
In 2007, Nokian Tyres will pay special attention to growth projects, sales and
logistics management and the expansion of the distribution network. Capacity
will be raised in accordance with an accelerated plan in Russia. Heavy Tyres
will focus on investing in production bottlenecks in order to increase capacity.
Owing to the seasonal nature of the business, the company's net sales and
operating profit are primarily generated in the second-half of the year,
especially in the final quarter, in both the manufacturing business and
distribution.
In 2007, the company is positioned to reach the target set for 2007 i.e. strong
sales growth and improved profits in line with the previous years. Q2 sales
started favourably and orders are at high level in all operations. Q1 growth and
profit improvement are exceptional and will not continue linearly all 2007. The
Group's full-year net sales are estimated to amount to EUR 900 - 1,000 million,
depending on how successful the winter tyre season is in the key markets.
This interim report has been prepared in accordance with IFRS compliant
recognition and measurement principles and the same
accounting policies as in the most recent annual financial
statements, but it has not been prepared in compliance with all
requirements set out in IAS 34 'Interim Financial Reporting'.
The interim report figures are unaudited.
NOKIAN TYRES
CONSOLIDATED INCOME STATEMENT
Million euros 1-3/07 1-3/06 Last 12 1-12/06 Change %
months
Net sales 199.9 149.4 886.4 835.9 33.8
Cost of sales -109.4 -91.4 -509.3 -491.3 19.7
Gross profit 90.5 58.0 377.1 344.5 56.1
Other operating income 0.4 0.4 2.0 2.0 1.0
Selling and marketing expenses -40.6 -35.9 -162.2 -157.6 13.0
Administration expenses -5.1 -4.1 -19.9 -18.9 25.3
Other operating expenses -6.2 -5.0 -18.2 -17.0 25.6
Operating profit 39.0 13.4 178.7 153.1 190.5
Financial income 5.6 7.1 20.8 22.3 -21.7
Financial expenses -9.0 -10.5 -34.7 -36.2 -14.0
Profit before tax 35.6 10.1 164.8 139.3 253.5
Tax expense (1 -7.4 -3.1 -36.3 -32.0 141.3
Profit for the period 28.1 7.0 128.5 107.3 303.1
Attributable to:
Equity holders of the parent 28.1 7.1 128.4 107.3
Minority interest 0.0 -0.1 0.1 0.0
Earnings per share from the profit
attributable to equity holders of the
parent
basic, euros 0.23 0.06 1.06 0.88 293.9
diluted, euros 0.22 0.06 1.03 0.86 292.1
KEY RATIOS 31.3.07 31.3.06 31.12.06 Change %
Equity ratio, % 59.9 58.0 63.0
Gearing, % 40.8 41.0 22.8
Equity per share, euro 4.78 3.97 4.56 20.4
Interest-bearing net debt,
mill. euros 239.6 197.0 126.9
Capital expenditure, mill.
euros 30.2 14.7 97.0
Depreciation, mill. euros 11.1 9.8 40.8
Personnel, average 3,397 3,124 3,234
Number of shares (million units)
at the end of period 122.65 121.09 122.03
in average 122.48 121.04 121.63
in average, diluted 126.75 124.67 125.15
1) Tax expense in the consolidated income statement is
based on the taxable profit for the period.
CONSOLIDATED BALANCE SHEET 31.3.07 31.3.06 31.12.06
Non-current assets
Property, plant and equipment 369.4 306.8 353.2
Goodwill 52.6 51.1 51.8
Other intangible assets 8.1 8.0 8.2
Investments in associates 0.1 0.1 0.1
Available-for-sale
financial assets 0.2 0.3 0.2
Other receivables 0.7 2.0 0.8
Deferred tax assets 19.7 17.1 14.3
Total non-current assets 450.8 385.3 428.6
Current assets
Inventories 198.1 171.6 159.8
Trade and other receivables 313.9 249.9 257.3
Cash and cash equivalents 17.6 21.8 39.0
Total current assets 529.6 443.3 456.1
Equity
Share capital 24.6 24.2 24.5
Share premium 143.6 137.9 142.7
Translation reserve -1.0 5.8 -2.2
Fair value and hedging reserves -0.1 -0.3 -0.1
Retained earnings 419.4 312.5 391.6
Minority interest 0.0 0.7 0.0
Total equity 586.5 480.8 556.6
Non-current liabilities
Deferred tax liabilities 22.8 23.1 20.5
Interest bearing liabilities 113.5 115.0 110.6
Other liabilities 1.9 2.0 1.9
Total non-current liabilities 138.1 140.2 133.0
Current liabilities
Trade and other payables 110.9 102.9 138.9
Provisions 1.0 0.9 1.0
Interest-bearing liabilities 143.7 103.8 55.3
Total current liabilities 255.7 207.7 195.2
Total assets 980.4 828.7 884.7
CONSOLIDATED CASH FLOW STATEMENT
Million euros 1-3/07 1-3/06 1-12/06
Cash flows from operating activities:
Cash generated from
operations -74.1 -66.3 165.7
Financial items and taxes -11.7 3.2 -59.1
Net cash from operating
activities -85.8 -63.2 106.6
Cash flows from investing activities:
Net cash used in investing
activities -28.9 -12.2 -89.8
Cash flows from financing activities:
Proceeds from issue of share
capital 1.0 0.1 5.2
Change in current financial
receivables and debt 89.3 88.7 42.5
Change in non-current financial
receivables and debt 3.0 -37.4 -41.0
Dividends paid 0.0 0.0 -27.9
Net cash from financing
activities 93.3 51.5 -21.2
Net change in cash and cash
equivalents -21.5 -23.8 -4.5
Cash and cash equivalents at
the beginning of the period 39.0 45.7 45.7
Effect of exchange rate changes -0.1 0.0 2.2
Cash and cash equivalents at
the end of the period 17.6 21.8 39.0
-21.5 -23.8 -4.5
The effect of exchange rate changes EUR -0.1 million
is included in the net cash from operating activities.
In 2006 that effect was EUR -0.3 million.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Million euros
Fair
Value Retai- Mino-
Trans- and ned rity
Share Share lation hedging ear- Inte-
capital premium reserve reserves nings rest Total
Equity,
Jan 1st 2006 24.2 137.8 5.7 -0.5 303.4 0.7 471.4
Interest rate swaps,
net of tax 0.2 0.2
Translation differences -0.4 0.0 -0.4
Gains/losses from hedge of net
investments in foreign operations,
net of tax 0.4 0.4
Profit for the period 7.1 -0.1 7.0
Total recognised
income and expenses
for the period 0.0 0.0 0.0 0.2 7.1 -0.1 7.2
Exercised warrants 0.0 0.1 0.1
Share-based payments 1.9 1.9
Other changes 0.0 0.0
Change in minority interest 0.0
Equity,
Mar 31st 2006 24.2 137.9 5.8 -0.3 312.5 0.7 480.8
Equity,
Jan 1st 2007 24.5 142.7 -2.2 -0.1 391.6 0.0 556.6
Interest rate swaps,
net of tax 0.1 0.1
Translation differences 1.3 1.3
Gains/losses from hedge of net
investments in foreign operations,
net of tax -0.1 -0.1
Profit for the period 28.1 28.1
Total recognised
income and expenses
for the period 0.0 0.0 1.2 0.1 28.1 0.0 29.4
Exercised warrants 0.1 0.9 1.0
Share-based payments 1.6 1.6
Other changes -2.0 -2.0
Change in minority interest 0.0
Equity,
Mar 31st 2007 24.6 143.6 -1.0 -0.1 419.4 0.0 586.5
SEGMENT INFORMATION 1-3/07 1-3/06 1-12/06 Change %
Million euros
Net sales
Passenger car tyres 141.4 101.8 533.2 38.9
Heavy tyres 25.6 21.9 90.1 16.9
Vianor 46.0 34.1 246.9 34.7
Others and eliminations -13.1 -8.5 -34.3 -54.2
Total 199.9 149.4 835.9 33.8
Operating result
Passenger car tyres 41.6 18.9 133.4 119.8
Heavy tyres 6.1 5.5 19.9 11.7
Vianor -5.7 -8.8 2.3 35.0
Others and eliminations -2.9 -2.1 -2.5 -38.7
Total 39.0 13.4 153.1 190.5
Operating result, % of net sales
Passenger car tyres 29.4 18.6 25.0
Heavy tyres 23.8 24.9 22.1
Vianor -12.5 -25.8 0.9
Total 19.5 9.0 18.3
Cash Flow II
Passenger car tyres -83.2 -50.4 68.9 -65.3
Heavy tyres -5.9 3.8 19.4 -254.3
Vianor -7.7 -2.9 7.5 -168.8
Total -103.7 -64.7 77.7 -60.2
CONTINGENT LIABILITIES 31.3.07 31.3.06 31.12.06
Million euros
FOR OWN DEBT
Mortgages 0.0 0.2 0.0
Pledged assets 0.0 0.0 0.0
OTHER OWN COMMITMENTS
Guarantees 1.0 1.0 1.0
Leasing and rent
commitments 83.9 75.5 82.5
Acquisition commitments 6.2 0.3 5.3
INTEREST RATE DERIVATIVES
Interest rate swaps
Fair value -0.1 -0.4 -0.2
Notional amount 15.4 16.5 15.4
Options, purchased
Fair value 0.0 0.0 0.0
Notional amount 0.0 0.0 0.0
CURRENCY DERIVATIVES
Forward contracts
Fair value 1.8 -0.6 1.1
Notional amount 245.6 169.9 199.9
Options, purchased
Fair value 0.3 0.1 0.0
Notional amount 39.4 5.7 12.6
Options, written
Fair value -0.4 0.0 -0.1
Notional amount 36.9 2.9 12.6
The fair value of interest rate derivatives is defined by cash flows
due to contracts. Interest rate swaps are wholly designated as cash
flow hedges and their changes in fair value relating to the effective
portion of the hedge is recognised in equity and the potential
ineffective portion is recognised in the income statement.
The fair value of forward foreign exchange contracts is calculated at
the forward rates on the balance sheet closing date on the basis of
cash flow arising from contracts. The fair value of options is
calculated by using the Garman-Kohlhagen option valuation model.
Currency derivatives are only used to hedge the Group's net exposure.
The changes in the fair values of currency derivatives are reported
in the income statement excluding the forward foreign exchange
contracts that are hedging the foreign currency denominated net
investment in a foreign subsidiary. Hedge accounting is applied for
those hedges and for hedges meeting the hedge accounting criteria
the changes in the fair values are wholly deferred in equity.
The fair value of those forward foreign exchange contracts was
EUR 0.3 million.
The notional amount of currency derivatives is the euro equivalent
of the contracts' currency denominated amount on the balance sheet
closing date.
Nokian Tyres plc
Raila Hietala-Hellman
Vice President, Corporate Communications
Further information: Kim Gran, President and CEO, tel. +358 3 340 7336.
Distribution: OMX and the key media
***
Nokian Tyres will publish the January-March 2007 financial results on
Wednesday, May 9, 2007 at 9.00 am Finnish time.
The result presentation to analysts and media will be held at Hotel Kämp,
Helsinki on Wednesday, May 9, 2007 at 10.00 am Finnish time. The presentation
language will be English.
The presentation can be listened through audiocast via internet on
Wednesday, May 9, 2007 at 10.00 am Finnish time
http://www.nokiantyres.com/resultinfo2007q1en
The event will be audiocasted live via internet. 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:
+44 (0)20 7162 0125
Password: Nokian Tyres
Stock exchange release and presentation material will be available before
the event at
http://www.nokiantyres.com/investors_en. After the event the audio recording can
be found at the same address.
