G O O D P E R F O R M A N C E I N A V O L A T I L E M A R K E T E N V I R O N M E N T

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G O O D P E R F O R M A N C E

I N A V O L A T I L E M A R K E T E N V I R O N M E N T

O C T O B E R 2 7 , 2 0 2 0

J U K K A M O I S I O – C E O

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S A L E S I N C R E A S E D I N Q 3

W I T H C O M P A R A B L E C U R R E N C I E S

Net sales EUR 349.9 million (354.5), 3.3% with comparable

currencies

• Good performance by the team in all business units in a volatile

market

• Passenger Car Tyres’ growth driven by North America and

Central Europe

• Some sales shifted from Q2 into Q3

Segments operating profit EUR 69.3 million (74.9)

• Negatively impacted by lower passenger car tire sales in Russia (EUR -10 million) and currencies

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C A S H F L O W I M P R O VE D S I G N I F I C A N T L Y

- B A L A N C E S H E E T C O N T I N U E S T O B E S T R O N G

EUR million 7–9 /20 7–9/19 Change% ChangeCC* % 1–9 /20 1–9/19 Change% ChangeCC* % 2019 Net sales 349.9 354.5 -1.3% 3.3% 900.4 1,110.6 -18.9% -15.9% 1,585.4

Segments operating profit 69.3 74.9 110.1 230.4 337.2

Segments operating profit % 19.8% 21.1% 12.2% 20.7% 21.3%

Segments EPS, EUR** 0.44 0.43 0.60 2.43 3.06

Segments ROCE, %*** 9.5% 22.1% 18.6%

Equity ratio, % 57.5% 66.3% 75.9%

Cash flow from operating activities 7.1 -88.7 -6.6 -178.5 219.8

Gearing, % 18.5% 25.0% 2.3%

Interest-bearing net debt 280.6 422.6 41.1

Capital expenditure 31.0 88.1 118.5 236.1 299.6

* Comparable currencies

** EPS 1-9/2019 excl. the impact of the rulings on the tax disputes of EUR 1.08 were EUR 1.23. Segments EPS 1-9/2019 excl. the impact were EUR 1.35. *** Rolling 12 months

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N E W C A R S A L E S A N D C A R T I R E S E L L - I N

I N 1 – 9 / 20 20

* Nokian Tyres’ core product segments, management estimate 2020

The Nordic countries

New car sales -18%

Car tire sell-in -12%

Heavy tire segments*

North America

New car sales -19%

Car tire sell-in -15%

Heavy tire segments*

Europe (excl. the Nordic countries)

New car sales -30%

Car tire sell-in -16%

Heavy tire segments*

Russia

New car sales -14%

Car tire sell-in -28%

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Q 3 : P A S S E N G E R C A R T Y R E S

• Net sales increased in all areas except Russia, where measures to reduce high carry-over stocks in the distribution channel continued

• Segment operating profit declined mainly due to lower sales in Russia and negative currency

impact, partly offset by lower raw material unit cost

• Production started to normalize in Russia and was adjusted according to demand in Finland. In the US factory, recruitment of the second shift is in progress

• In the Finnish factory, we will continue to increase heavy tires production. Passenger car tire

manufacturing will focus on the production of premium car tires and prototyping

I m p r o v e m e n t i n a l l a r e a s e x c e p t R u s s i a

7–9 /20 7–9/19 Change% ChangeCC* % 1–9 /20 1–9/19 Change% Change CC* % 2019 Net sales, M€ 254.9 256.7 -0.7% 4.8% 609.2 806.5 -24.5% -21.3% 1,123.8 Segment operating profit, M€ 71.8 75.6 111.3 226.3 308.5 Segment operating profit, % 28.2% 29.5% 18.3% 28.1% 27.4% * Comparable currencies

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P A S S E N G E R C A R T Y R E S N E T S A L E S

- Q U A RT E R LY CH A N GE S

Q2 Q1 Q3 Q4 Q1 Q2 1,5% -5,0% -6,5% -0,9% -22,7% -41,7% Q3 5,1% -0,8% Q2 Q2 Q1 Q3 Q4 Q1 1,7% -0,8% 2,1% -0,7% -0,3% Q3 -0,3% -1,8% 0,5% 1,9% Q2 Q1 Q1 Q2 Q3 Q4 2,1% -1,3% -2,8% Q3 -5,5% S a l e s V o l u m e s P r i c e / M i x C u r r e n c y 2 0 1 9 2 0 2 0 2 0 1 9 2 0 2 0 2 0 1 9 2 0 2 0 Y o Y C h a n g e %

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NET SALES, M€

Q 3 : P A S S E N G E R C A R T Y R E S B R I D G E

P o s i t i v e i m p a c t f r o m v o l u m e a n d m a t e r i a l s o n s e g m e n t o p e r a t i n g p r o f i t

SEGMENT OPERATING PROFIT, M€

13 255 260 0 270 280 265 275 Sales Volume 2 6 9 Currency -1 Q3/2020 2 5 5 -14

Net Sales excl FX effect 2 5 7 Price/Mix Q3/2019 -0,7% 5,1% -0,3% -5,5% 7 11 2 100 0 75 95 90 80 85 76 Bad Debts -1 Price/Mix Materials - 9 Supply Chain -4 EBIT excl FX effect SG&A -11 Currency Q3/2020 72 83 Q3/2019 Sales Volume

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Q 3 : H E A VY T Y R E S

• Net sales decreased by 2.0% with comparable currencies due to lower OEM sales

• Excluding the Levypyörä acquisition in August 2019, net sales declined by 3.2% • Segment operating profit at the previous year’s level

W e a k e r O E d e m a n d i m p a c t e d n e t s a l e s

* Comparable currencies 7–9 /20 7–9/19 Change% ChangeCC* % 1–9 /20 1–9/19 Change% Change CC* % 2019 Net sales, M€ 49.8 52.2 -4.5% -2.0% 141.4 148.2 -4.6% -2.8% 202.7 Segment operating profit, M€ 7.8 8.3 18.7 25.6 35.7 Segment operating profit, % 15.8% 15.9% 13.2% 17.3% 17.6%

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Q 3 : VI A N O R

• Net sales decreased by 1.2% with comparable currencies

• Segment operating profit EUR -3.2 million

• Vianor US network, including ten service centers, was sold in August

• At period end, Vianor had 175 own service centers in Finland, Sweden and Norway

G o o d p e r f o r m a n c e i n a t y p i c a l l y l o w s e a s o n

7–9 /20 7–9/19 Change% ChangeCC* % 1–9 /20 1–9/19 Change% Change CC* % 2019 Net sales, M€ 67.4 69.7 -3.3% -1.2% 202.7 216.4 -6.4% -3.1% 336.5 Segment operating profit, M€ -3.2 -3.8 -6.0 -6.4 7.7** Segment operating profit, % -4.8% -5.5% -3.0% -3.0% 2.3% Number of own service centers at period end 175 189 189 * Comparable currencies

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O U R P R I O R I T I E S

A R E C L E A R

• Providing customers with world-class products and

services

• Keeping costs in strict control

• Protecting cash flow by cutting back investments,

managing working capital, and delaying activities

→ With a valued brand, strong expertise and enhanced production capacity, we are well

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P E A C E O F M I N D

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G R O U P O P E R A T I N G P R O F I T

P E R Q U A R T E R 20 1 6 – Q 3 / 2 0 2 0

1–9/2020 • Net sales 900.4 M€ (1,110.6), -18.9% • Operating profit 48.6 M€ (215.5) 7–9/2020 • Net sales 349.9 M€ (354.5), -1.3% • Operating profit 62.3 M€ (67.5) C U M U L A T I V E O P E R A T I N G P R O F I T P E R R E V I E W P E R I O D G R O U P O P E R A T I N G P R O F I T P E R Q U A R T E R -30 0 30 60 90 120 150 Q1 Q2 Q3 Q4 M€ 2016 2017 2018 2019 2020 -20 30 80 130 180 230 280 330 380 1–3 1–6 1–9 1–12 M€ APPENDIX APPENDIX

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NET SALES, M€

1 – 9 / 20 20 : P A S S E N G E R C A R T Y R E S B R I D G E

N e g a t i v e i m p a c t o f E U R 8 8 m i l l i o n f r o m v o l u m e o n s e g m e n t o p e r a t i n g p r o f i t

SEGMENT OPERATING PROFIT, M€

6 0 650 700 850 600 800 750 - 1 7 7 609 Price/Mix Currency 1-9/2020 635 807 -26

1-9/2019 Net Sales excl FX effect Sales Volume -24,5% - 2 2 , 0 % 0 , 7 % - 3 , 2 % APPENDIX APPENDIX 17 180 200 220 240 -34 226 - 8 8 U n a b s o r b e d S C c o s t s d u e t o l o w e r v o l u m e s

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M A T E R I A L

C O S T D E VE L O P M E N T

D e c r e a s e d i n Q 3 / 2 0 2 0

APPENDIX M A T E R I A L C O S T D E V E L O P M E N T I N D E X 2 0 1 0 – E 2 0 2 0 100 131 131 114 96 83 79 92 92 96 84 70 80 90 100 110 120 130 140 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 91 95 98 95 97 95 89 91 81 70 75 80 85 90 95 100 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 M A T E R I A L C O S T S ( € / K G ) • Decreased by 18.4% in Q3/2020 vs. Q3/2019 • Decreased by 14.4% in Q3/2020 vs. Q2/2020 • Decreased by 10.8% in 1-9/2020 vs. 1-9/2019

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N E T D E B T A N D D E B T M A T U R I T I E S

404 136 297 261 98 118 0 100 200 300 400 500 600 700 800 900 0 100 200 300 400 500 600 700 800 900 Debt Cash Net

Debt Debt Cash

Net Debt E U R m ill ion Net Debt Q3/2020 Q3/2019 0 276 1 1 122 4 197 100 7 24 17 14 10 26 200 0 50 100 150 200 250 300 350 400 450 0 50 100 150 200 250 300 350 400 450 2020 Share of 2021 2022 2023 2024 2025-E U R m ill ion Debt Maturities Q3/2020 APPENDIX APPENDIX

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ICELAND 4 UK 57 PORTUGAL 45 SPAIN138 FRANCE 146 BELGIUM 8 NETHER-LANDS 32 GERMANY 359 SWIZERLAND 61 NORWAY 133 SWEDEN96 FINLAND104 RUSSIA 328 117 KAZAKHSTAN 19 8 GEORGIA 23 CHINA 171 ARMENIA 3 TURKEY 33 ESTONIA 10 LATVIA 6 LITHUANIA BELARUS 31 UKRAINE 153 236 POLAND 119 ITALY 258 DENMARK 58 CZECH REP. 57 SLOVAKIA 17 SLOVENIA 37 CROATIA 11 AUSTRIA 35 HUNGARY43 ROMANIA 45 BULGARIA 5440 SERBIA 256 MACEDONIA 8 MOLDOVA 8 N A D N - T Y R E V I A N O R 21 GREECE

N E T W O R K D E VE L O P M E N T P R O G R E S S E D

VIANOR – 1,115 SERVICE CENTERS IN 17 COUNTRIES

175 own stores and 940 partners Own -14, partner -41 vs. year-end 2019

• Largest tire chain in the Nordic countries:

333 service centers (-14 vs. year-end 2019) • Largest tire chain in Russia and CIS:

376 service centers (-11 vs. year-end 2019) • Central Europe: 406 service centers

(-19 vs. year-end 2019)

NOKIAN TYRES AUTHORIZED DEALERS (NAD) – 2,229 STORES

• In 24 European countries, USA, China and Japan • Increase of 47 stores vs. year-end 2019

N-TYRE – 126 STORES

• In Russia, Kazakhstan and Belarus • Decrease of 7 stores vs. year-end 2019

V i a n o r , N A D , N - T y r e ; - 1 5 s t o r e s

i n 1 – 9 / 2 0 2 0

APPENDIX 1 290 USA JAPAN 3

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