Nokian Renkaat - Company Announcement

Nokian Tyres' incentive scheme to be updated

Nokian Tyres plc Stock Exchange Release 24 February 2016, 10.00 a.m

The Board of Directors of Nokian Tyres plc has decided to update the Group's
incentive schemes. The update aims to clarify and improve the schemes, and to
offer a competitive rewarding system for the entire personnel. The incentive
scheme has long focused on options, which are due to expire in 2019.

Profit-related bonus scheme

Nokian Tyres plc has decided to begin using a profit-related bonus scheme, which
will be based on the profit made by the Group. The profit-related bonus scheme
will cover the entire personnel, with the exception of those covered by the
share-based incentive scheme for senior executives. The new scheme will take
effect in the financial period beginning January 1, 2016, and bonuses earned
under the scheme will be paid into a newly established personnel fund in
Finland. 50% of the profit-related bonuses paid into Nokian Tyres' personnel
fund will be invested in Nokian Tyres plc shares.

"A profit-related bonus based on operating profit will increase the entire
personnel's commitment to and interest in the success of the Group as a whole.
The personnel fund will enable both the company and the personnel to gain
greater benefit from the money invested in bonuses than under other forms of
bonus scheme," says Ari Lehtoranta, President and CEO of Nokian Tyres.

Share-based incentive scheme

The aim of Nokian Tyres' new share-based incentive scheme is to align the
objectives of the owners and key personnel so as to increase the company's value
over the long term and commit key personnel to the company. The share-based
incentive scheme covers approximately 5% of the Group's personnel including top
management.

The share-based incentive scheme contains three one-year earning periods: the
calendar years of 2016, 2017, and 2018. The company's Board of Directors will
decide upon the earning criteria for the scheme at the beginning of the earning
period, along with the objectives assigned to each criterion. Any bonus to be
paid under the scheme for the 2016 earning period will be based on the Group's
operating profit and net sales. The maximum value of bonuses to be paid for the
2016 earning period is equivalent to approximately 515,000 Nokian Tyres shares,
including a portion to be paid in cash.

Any bonus to be paid for the 2016 earning period will be paid in 2017. Part of
the bonus will be paid in shares and part will be paid in cash. The cash portion
is intended to cover the taxes and other statutory payments for which key
personnel become liable as a result of receiving the bonus. If a key person's
employment relationship ends before the bonus is paid, the bonus will not
normally be paid. Shares awarded as bonuses are issued in the form of restricted
stock that will vest after a period of approximately one year.

Members of the Group's management team must own 25% of the gross number of
shares they have earned under the scheme up to the point where they own shares
with a total value corresponding to their gross annual salaries. They must
retain ownership of this number of shares for the entire duration of their
membership of the Group's management team.

NOKIAN TYRES PLC

Antti-Jussi Tähtinen
Vice President, Marketing and Communications

Further information: Ville Nurmi, Vice President, Human Resources, Tel: +358 10
401 7268

Distribution: Nasdaq Helsinki Ltd, media and 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 1,475 outlets in 26 countries. In 2015 Nokian Tyres had
approximately 4,400 employees and net sales of approximately 1,4 billion euros.
Nokian Tyres’ share is listed on the Nasdaq Helsinki. Further
information: www.nokiantyres.com