2007-05-09 09:55:12 CEST

2007-05-09 09:55:12 CEST


REGULATED INFORMATION

English Finnish
Nokian Renkaat - Quarterly report

INTERIM REPORT FOR NOKIAN TYRES PLC JANUARY - MARCH 2007


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.