2022-06-28 16:00:00 CEST

2022-06-28 16:00:06 CEST


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Nokian Renkaat - Inside information

Nokian Tyres plc initiates a controlled exit from Russia


Nokian Tyres plc Inside information, June 28, 2022 at 5:00 p.m.

Nokian Tyres' Board of Directors has today decided to initiate a controlled exit
from the Russian market. Due to the war in Ukraine and the subsequent,
tightening sanctions it is no longer feasible nor sustainable for Nokian Tyres
plc to continue operations in Russia. The exit preparations will start
immediately, and the company will evaluate different options for the exit. The
process will be done with due consideration to local employees and legislation.

As part of the process, Nokian Tyres will record impairments of approximately
EUR 300 million related to the Russian assets in the second quarter of 2022.
These will be recorded as non-IFRS exclusions. Taking the impairments into
account, the value of Nokian Tyres' net assets in Russia and Belarus totalled
approximately EUR 400 million on May 31, 2022.

“For the past months, we have witnessed shocking events in Ukraine. We have
followed the situation with great sadness and we, along with the whole
international community, unequivocally condemn the war, which has caused
unspeakable suffering to so many”, says Jukka Moisio, President and CEO of
Nokian Tyres. “Our short-term focus has been on adapting to the fast-changing,
highly uncertain operating environment, and maintaining control of our
operations in Russia.”

“After a thorough consideration and assessment of various options, we have
decided to rebuild Nokian Tyres without a presence in Russia and focus on growth
opportunities in our other core markets. This was not an easy decision given we
have over 1,600 dedicated employees in Russia whose expertise we highly value as
well as many long-standing customer and supplier relations built over the past
17 years”, Moisio continues.

To secure supply of its products, Nokian Tyres has continued to increase
capacity at its factories in Finland and in the US, and has decided to invest in
completely new capacity in Europe. The company announced earlier in the year
that it had stopped investments into the Russian facility and started
transferring production of selected key product families from Russia to its
other factories.

Nokian Tyres has been operating in Russia since 2005. In 2021, approximately 80%
of the company's passenger car tires were produced in Russia and the business
area Russia and Asia represented approximately 20% of Nokian Tyres' net sales.

As of today, Andrey Pantyukhov, who has been heading Nokian Tyres' business area
Russia and Asia, no longer is a member of Nokian Tyres' management team.

Nokian Tyres plc

Päivi Antola
SVP, Corporate Communications and Investor Relations

Further information:
Jukka Moisio, President and CEO, tel: +358 10 401 7742
Teemu Kangas-Kärki, CFO, tel: +358 10 401 7750
Päivi Antola, SVP, Corporate Communications and Investor Relations, tel: +358 10
401 7327

Investor relations:
ir@nokiantyres.com
Media enquiries:
media@nokiantyres.com

Distribution: Nasdaq Helsinki, media and www.nokiantyres.com

Nokian Tyres develops and manufactures premium tires for people who value
safety, sustainability and predictability. Our purpose is to empower the world
to drive smarter. Inspired by our Scandinavian heritage, we craft innovative
products for passenger cars, trucks and heavy machinery that give you peace of
mind in all driving conditions. Our Vianor chain provides tire and car services.
In 2021, the company's net sales were EUR 1.7 billion and it employed some 4,900
people. Nokian Tyres is listed on Nasdaq Helsinki. Further information:
www.nokiantyres.com (https://eur04.safelinks.protection.outlook.com/?url=http%3A%
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