Nokian Tyres Plc Unsp/Adr

afternoon from Helsinki and welcome to Nokian Tyres Q4 and full year 2024 results call. My name is Taivi Antola and I am from Nokian Tyres Investor Relations and together with me in the call I have Paolo Pompei, the president and CEO of Nokian Tyres and Niko Haavisto, the CFO. Paolo, this is now your first results call in Nokian Tires. I would like to only welcome you to Nokian Tires.

Great. Thank you, Paivi. Thank you to all the Nokian employees who were actually giving a warm welcome in the company since I joined at the beginning of January. Before we start, really, I would like to really say thank you to my predecessor, first of all, because obviously, Yuka Moise left the company, retired from the company, at the end of the 2024. I think he has been excellent in driving the company in extremely difficult times. And what we have today, what we have the opportunity to leverage today is a much better platform than what it used to be. So I'd like to thank him really for the great contribution and I'm honored actually to be able to carry on his journey today.

Thank you, Paolo. And it's now been a bit more than a month that you have been leading the company. It's a new company for you, but also a new country to live in. How have you adapted to Finland and the Finnish winter weather?

I think the weather was extremely kind with me so far, allowing me to get a smooth transition in Finland. Now today I'm a proud citizen of Helsinki, and I know already very good restaurants that are around the city, so I think I will have a nice time here in Finland and I'm looking forward actually to carry on the journey here.

So is there anything that has surprised you so far?

Not really. I mean, I think I knew Nokian Tire since 20 years because obviously coming from the industry I had the opportunity to look at Nokian Tire many, many years in the past and I was always impressed by really the great development that we've been watching in the last few years. Nokian Tire has been always a strong leader, in particular in high-performing segments like the winter tires, which is demanding, actually, extremely strong performance, and has been always a leader in sustainability. But I was also very impressed by the way Nokian Tire was able actually to manage the reorganization after the crisis in Russia and to build a new successful platform for the future. So I think this is really what makes me extremely enthusiastic to be part of the team today and to start to work with the Nokian Tires teams on our future.

And anything now after four weeks, your first impressions of Nokian Tires? You know the company from the past, but in that sense, any surprises or

As I said, coming from the industry, I knew the company quite well, and looking from outside, I think I can confirm, really, the deep and strong focus on performing products in extremely demanding applications and with an extremely demanding weather condition, the extremely strong focus on sustainability, which is making this company in some way unique, looking at the future. So really, nothing particularly new, and actually, I found more exciting things to leverage for the future than what I could see from outside.

If we then look a little bit to the future, the next coming weeks, coming months, what are you focusing on first? What are going to be your first priorities?

I think the agenda is quite clear. The first priority is to accelerate the startup in Romania, which is obviously our new manufacturing platform, which is really the one that will deliver growth in our future journey. Complete, obviously, the development of the North American operations, where actually this year we just completed the startup phase in some ways, so the expansion phase. And then, of course, we will focus together with the Nokia entire team efficiency, productivity, because obviously we have now a new platform and we need to make sure this platform is more productive and more efficient for the future. Last but not least, consumer focus. I mean, we have now the opportunity really to build together a strong brand, in particular the new markets. We are already quite strong in the Nordics, but we have huge opportunities in Central Europe as well as in North America, and this is going to be our main challenge and main opportunity for the future.

So you now have these 30 plus days behind you and always there's a talk about the first 100 days but when do you think you will be ready or the company will be ready to share more on the strategy and the company's future direction?

I think we will be ready very soon, probably March already, after 80 days. So obviously, I look forward to plan a call where we can actually explain our way forward a little bit more in details. But again, the transition time with UCAM also was giving me the possibility to actually to step in and to be immediately up to speed from day one. So we will come back to you very soon.

Thank you, Paolo, for these words and this information. Now it's time to go to the actual presentation and talk a little bit about 24 and the last quarter of the year. Paolo, please go ahead.

Thank you, Pai-Evi. Of course, we start with... The headline, which is a solid growth and driven by Central Europe in 2024, and of course North America was challenging it, delivering in some way a soft quarter, and the Romanian factory will be getting ready for time deliveries very, very soon. But I want to start moving to page number two with the picture of where we stand today. care about this, because I believe that today, as I mentioned in the introduction, we have a stronger platform than before. Today, we are much less vulnerable having in the passenger car business three manufacturing facilities that are meeting very well our local for local business model. Of course, we are still in a sort of startup phase, but again, I believe this platform will give us the possibility to expand our operation and to create a business model that is more agile and closer to our key consumer and customers. We are a premium tire brand in Nordic countries, but we have strong ambitions in terms of growth, both in North America as well as in Central Europe, and we are focused really on high-value segments, in particular in demanding applications like winter tires, but also now developing fast on the all-season business, too. Strong, strong focus on sustainability. Probably one of the most leading companies in the tire industry focused on sustainability, and we're really proud about this, our sustainability plan that is part of our DNA. 1.3 billion, more or less, business in 2024. More than 50% of our business is in car tires, as you can see. Heavy tires, including truck tires, is representing 16% of our sales in the year. is made in the Nordics, actually 100% in the Nordics and is representing 28% of our total sales. As you can see from this graph also, Nordic is representing 50%, more than 50% of our sales, 54% to be precise. But obviously we have great opportunities of growth and we are growing fast in Central Europe again and in North America in particular. Moving to slide number three, well, the 2024 was in some way a challenging year, but of course it was strong in terms of performance when we talk about sales in a challenging market, considering that the factory in Oradea is not yet up running for commercial sales. We've been delivering new products. We have improved our deliveries and our availability. And of course, we made good progress with the strategic investments, adding capacity, as I said at the beginning, with the first zero CO2 emission factories in the world. And then, of course, we have just completed the investment phase in the North America factory in Dayton. We did a great step forward where we talk about sustainability. In particular, I want to mention the recognition of the platinum medal for our EcoVadis certification, putting us in the range of the 1% of the companies that are able to get this kind of certification. And now I will invite Nicco to move on to page four.

Thank you, Paolo. First, on the full year numbers, as Paolo said, solid growth in terms of top line last year. The growth was a little bit over 10.5% in comparable currencies. We landed on comparable currencies with 1.3 billion. Segment EBITDA, 185 million euros, which represents roughly 14.4% from the sales. And as you know, there is a target of reaching that at the level of 25% during this strategy period. This is still valid as we speak. Segments operating profit for the full year, 71.4 million euro. And of course, that's driven by the volume and then lower raw material costs in the full year numbers. The board is proposing a dividend of 25 cents per share to the HCM to be held in May and then paid also full in one installment in May. On the page five, more on the quarter numbers. So there we see that there was a clear increase in terms of net sales. a little bit over 13% and this mainly came from the central euro which is in line with our strategy. EBITDA of 67 million euros and then on the operating profit level of 36 million euros compared to prior years 44.5 million euros and there the decline is due to our lower ASB, which are mainly related to the mix. And then we said that we had higher operating expenses in Q4. On the page six, I think I would like to point out a couple of numbers here. One is, of course, the equity ratio. We are still on a healthy above 50% level. to be exact there, 52.5% on equity ratio. And then on the net interest bearing net debt, 613 million. And at the same time, we invested mainly to Romanian, i.e. Oradea factory, and then finalizing the Dayton investments. And that amounted total to 350 million euros. On page seven, we go through the segments. So Q4, once again, good achievement in terms of top line. It comes mainly from the Central Europe, but of course disappointing was the mix and then the higher operating expenses there. So we landed in terms of operating profit for the quarter roughly 14 million euros and with the percentage 5.7% for that quarter alone. If we take a look at the bridges, we see that once again the volume there on the top part of the graph, the net sales, the volume is there, good increase, but then on the price and mix, of course, there is a negative number. More to the segments operating profit, so that was affected by both in the price and mix, but also the material costs for the Q4. where they're giving us headwind. Then I move to VCT, passenger car tires, quarterly changes, and there you see, I'm looking at the center of the graph there, if I look at the price and mix, so in Q3 we were at the level of minus 11%, now at minus 8%, and this is a trend that we need to change going forward. The currencies didn't play any big role in last year's numbers. Moving to the heavy tires, I think this is something that we can be really proud of. So in a weak market throughout the year, but also especially even with the similar volumes than last year, Q4, we managed to do operating profit of 14%. And especially there, the OE market was weak, but we managed to have sales, good sales, profitable sales in the aftermarket. So I think this is something that we are really, really proud of. Then finally, last segment, Vianor, their sales performance was good if looking at the Q4. operating profit was was less than last year that that's a marching thing and and this is something we said all along last year that that we need to improve the profitability there and we've taken actions during the year but that will take some time to materialize in the full full numbers but but but as such the q4 was was solid for vianos Then I've moved to the guidance. So we gave a guidance for this year, i.e. 25. So we say that our net sales are expected to grow and the segments operating profit as a percentage of net sales to improve compared to 24. And then you see the assumptions that we are facing. of guidance there as well. And with this, I hand over to Paul.

Thank you, Nico. We are now in stage 13. Of course, let's look at now in some way of the future. I mean, we have a premium brand that is delivering superior performance in extreme conditions. And we are obviously working very hard at delivering continuously innovation in our own products. And we will have new products coming out this year that we will be proud to announce later on in our journey. Of course, in 2024, we've been able to actually deliver many new products, as I said. In particular, I want to mention our Season Pro One, that is an all-season tire for the central European market that has been developing our sales, as you can see from the figures illustrated by Nico quite well so far, gaining a lot of new opportunities. Then, of course, we have for the North American market, the North Weather Tire, the Nokian Tire Remedy WRG5, which has also been released recently. And then, of course, also the heavy tire industry, the Nokian Tire Soil King. has been always a good add-on to our project range for servicing high-power tractors in the industry. But what I really care about is really about the slide number 15 that is illustrating our manufacturing footprint, the way that we are shaping our manufacturing footprint for the future, because this will give us the possibility to be extremely close to our consumer and customers, and at the same time, to leverage a manufacturing footprint that is giving us the possibility to be more agile and to respond to market demand, considering the geopolitical situation that is affecting the world at the moment. We can see that really having such a diversified manufacturing footprint will give us the possibility to be less vulnerable to market fluctuations. So we will have 25% of our production output by 2027 that will be delivered by our American factory in Dayton. We will have 35% of our output that is going to be released by our factory in Nokia, which has been actually reinforced in thermal capacity in the last couple of years. And then, of course, Oradea in Romania will absorb 40% of our total production capacity, giving us the possibility to service real-time, really, the Central European and Southern European market, too. We will keep using our partners to support Nokian Tyres in the future, wherever we have gaps or wherever we need to really leverage also the support of additional capacity when it's needed. So this setup will really give us the possibility to manage more efficiently our future growth. I mentioned the Romanian factory. I mean, of course, today we are employing 300 employees on site, and we should be able to start the deliveries pretty soon. Obviously, we will make an announcement as soon as we will start deliveries in the next few months. Also very important, slide 17, we are obviously moving forward in our journey when we talk about sustainability. We are just mentioning a few examples of our strong effort in achieving our own targets, long-term targets. First of all, I mentioned at the beginning the platinum medal with El Covadis. That is really something we are proud of. putting Nukian tires in the top 1% companies that were assessed by Ecovadis. Then, of course, in a new greenhouse gas reduction target, we have contributed and we have agreed about our own long-term targets with the science-based target initiative that are obviously contributing to reduce the global warming by 1.5%. And last but not least, I mean, we keep... our journey in building products that are obviously increasing the percentage of renewable as well as recyclable material to 50% by 2030. And this year we will have good news about the new reasons product that we are going to launch in the Central European market that are actually almost meeting this requirement. And of course we are cooperating with the partners. In this case I want to mention the partnership with UPM using a renewable lining-based material that is obviously giving us the opportunity to replace fossil-based carbon black. And at the same time, the partnership that we have activated with Resolo, that we are able actually to use material from Birchbark that are replacing, also in this case, fossil-based materials. Moving to slide 18, I would like to mention something that we just announced this morning that we are also changing our operating model, adapting the company to the next step of growth and operational excellence. The new organization that we are launching at the moment will give us the possibility to keep our leading position in the Nordics, but at the same time to increase the focus on strategic markets like Central Europe as well as in North America. Also, having the member of the management team as part of these regions in the management team will drive the agenda of the management team to an higher focus on generating consumer demand long-term. And of course, the new organization is set also to now to start to leverage the synergies that are coming from our new manufacturing footprint. and also the synergies that are coming from operational excellence in everything we do day by day. Moving to slide 19, just a graphic illustration of the new organization as it looks like at the moment. So we are basically splitting the passenger car tire business area in three divisions, so Nordics, North America, and Central Europe that will be actually part of the organization reporting directly to me, and then, of course, we will keep Evitire and Vianor as also independent sales organizations. At the same time, we will have global functions, and I would like to highlight the two main changes in this organization chart. One is the creation of a global manufacturing function that will take care about all our manufacturing facilities, making sure that we are able to allocate resources and generate synergies from our manufacturing footprint of today. The second one is the reinforcement of the marketing and communication function that will be one key function for developing our brand value proposition in the market, in particular, as I say, the new market like Central Europe and North America. And we'll operate, obviously, across the company, supporting the company to increase the value of our brand. Also, I would like to take this opportunity to thank you, Paivi, because as you can see from this slide, we are splitting the investor relations function with the marketing communication function, and Paivi obviously will lead the company, and that probably will be your last call. So presenting the organization, I would like to thank the company for such a long service, and for your support, actually, in these last seven years. That has been extremely valuable, and obviously we wish you all the best for the continuation of the journey. Obviously, we will integrate the investor relation in the finance function, as you can see from this organization. And then, of course, as I said before, the marketing communication function will be reinforced at a global level. Moving to slide 20, key priorities for 2025. It's really about driving growth that is coming from new products. We have a very nice agenda in front of us thinking about new products and, of course, products that are really driven by the necessity to generate value for the consumer. Great opportunity to ramp up the factory in Romania in the next few months. And this will give us, as I said several times in this call, the possibility to leverage a final manufacturing footprint that is fully integrated and agile at the same time. And then, of course, it's time really to focus on more productivity and more cost efficiency as a result of all the investments that we made in the last few years in the company. And closing on slide 21, that is obviously reminding everyone our purpose, that is to make the world safer by inventing the tires and the way they are made over and over and again. And as a newcomer in the company, I can confirm this is really part of the spirit of our team to think about how we can do things differently, how we can innovate more, and how we can be successful, successfully addressing the future needs of our consumers and customers.

Thank you, Paolo. Thank you, Nico. And now we would be ready for the questions from the audience, please.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Akshat Kakar from JP Morgan. Please go ahead.

Thank you for taking my question from JP Morgan. Welcome, Paolo. I have three questions, please. The first one on your dividend policy. I just want to clarify that the proposal of 25 cents per share is the final consideration for 2025 or like in the last few years, you could consider a second dividend payment later in the year. That's the first question. The second question is on the passenger car margin in Q4. You mentioned that you've seen higher operating expenses impacting the business in Q4. Is it possible to quantify the share of one-off costs or one-off charges that impacted the quarter specifically, please? And the last question is on your expectations for total CapEx net of subsidies as well as free cash flow for the business in 2025, please. Thank you so much.

Yeah, starting with the dividend. So our dividend policy as such has not changed. The board of course considered the dividend what they are proposing to AGM and the proposal is the 25 cents. And that is the proposal, so there is no additional dividend proposed for the 2025, i.e. the 25 cents is the proposal and then if the AGM decides so, it will be paid in May. So one installment, 25 cents.

Yes, maybe I can reply about operating expenses. As you can clearly see, we are now rebuilding our organization after the exit of Russia. Obviously, from Russia we had to adjust our operating model, but now it's really time to invest in our future, so the majority of those operating expenses are related to our activities necessary to rebuild the organization, in particular in Central Europe at this stage.

Yeah, and the CAPEX, so CAPEX, we are estimating roughly 200 million euros in this year, and then that would conclude our investment phase end of 25. On the free cash flow, I don't want to comment at this point, but the CAPEX is the 200 million euros roughly.

Thank you for that.

The next question comes from Artem Beletsky from SEB. Please go ahead. The next question comes from Thomas Besson from Kepler-Tuvriax. Please go ahead.

Thank you. Hi, it's Thomas Besson. I have a few questions as well, please. Could you maybe help us understand the impact of contract manufacturing on your operating profits in 2024 and maybe as well in 2023? I think most people on that call thought that your margins would actually move up from a low point in 2022 and progress, and they are actually going backwards. I'd like to try to understand that better, and maybe this is linked with a higher proportion of contract manufacturing. Do you mind sharing this kind of information with us, please? That's the first question. Second question, could you please talk about the amount of adjustments you expect in 2025? I mean, you have a high amount of, a very big gap between your operating profits, which for me is the right measure to look at, and what you could call your segment operating profits. Should we expect the gap between both metrics to close or to have a similar gap, please? And then, last question. I'd like to understand, or maybe you can share more information on this. Did you see a deterioration of your winter tar margins in 2024? Because basically the market was very supportive, to say the least, in Europe in Q4. It comes, therefore, as a decent surprise to see you report a negative operating profit in passenger cars. Thank you.

Thank you for the question. So I will start with the first question about the contract manufacturing. Contract manufacturing are supporting in particular segments that are of course related to summer tire in particular. So obviously when we think about the margins, we should not expect the contract manufacturing really to change our picture. As you mentioned correctly in the last question, winter tire is really what is driving obviously our profitability for So contract manufacturing is supporting, is helping, and of course the margins are quite good, but of course let's remember that they have an impact on the mix at the same time. So the product mix is obviously affected by contract manufacturing sales.

If I understand correctly, the question was about the exclusions, and we had roughly 70 million euros last year. So the expectation, of course, that we are closing the gap, so it's less and hopefully much less than 70 million euros. But at the same time, it, of course, depends on the speed of the ramp-up we are doing in At the moment, we are thinking those are the kind of the exclusions that we will make to any five numbers.

Now we'll take the last question about winter tires. You are absolutely correct. The winter tire was great and it was great for us too. Actually, we were able to grow and gain market share in that. But please, let's always remember that This year, finally, we were able to get back also to the old season and summertime segments. So, again, from the mix point of view, we see an average price going down. But, of course, because the old season and the summertime segments were growing faster, being relatively new again in our product range than the wintertime segments. But I think the wintertime segment was strong, was good, and we were able actually to gain significantly market share.

Thank you.

The next question comes from Artem Beletsky from SEB. Please go ahead.

Yes, good afternoon and thank you for taking my questions. Let's try again. So I would like to ask on prospects for these years and maybe some parameters what you're looking at. So what comes to volume development? What is your target in terms of Romanian production? uh this year and whether you can increase volumes elsewhere and then also looking at the price mix versus raw material development so so the number was clearly negative in q4 so do you have any any view on how it looks like for uh for this year then the second question is relating to uh romanian factory uh ramp up so do you have any number in mind at this stage uh what uh one of costs could be this year relating to it. And the last one is just looking at your balance sheet situation. So net debt to segment EBITDA, I think was more than three times at the year end. I guess this year EBITDA should be growing and drive symmetric down, but do you see any bigger opportunities when it comes to working capital and inventories, for example?

Thank you for your question. Let me start with the Romanian factory. Obviously, we don't disclose precisely the number because of confidential reasons, but Romania will start to contribute significantly to our global manufacturing volume already this year. Then, of course, we are waiting at the moment for the final commercial permit, and then we can start really also delivering tires into the market. About the prices versus raw material, of course, we are always protecting profitable growth, and of course, we are always making sure that we compensate inflation in our pricing model. So this is what I can tell you, obviously, without anticipating obviously details so that we cannot disclose for obvious reasons. And about EBITDA, Martin?

Yeah, so the question related to net debt EBITDA, so the target is on a longer term to be between one and two times net debt to EBITDA and this company will, as we've said several times, will have a debt on the balance sheet going forward as well. The thinking, of course, is that the ratio is not similar that it was at last year's end, i.e., as you said, that increasing, of course, the EBITDA. And in terms of networking capital, that is something that we are looking at constantly, that what are the things there we can do, both in terms of the inventories we said there in the guidance as well that we have. good level of inventory so we can support the market from the inventories and the receivables were at the level of 270 million euros at the year end. Then at the same time, if and when we are growing the business, what we can do there in terms of the real numbers, we need to We'll need to see, but I cannot say that, you know, definitely we will have certain type of networking capital. But, of course, it's something that we will constantly monitor, and we need to start to produce actual cash flow. So that is a clear target for the company.

Okay, great. Thank you.

The next question comes from Mika Ihemaki from DNB Markets. Please go ahead.

Hi, this is Mika from DNB and welcome also Paolo. Question, you mentioned in the last quarter that you see relatively good momentum in Nordics, good momentum in Canada despite warm weather, perhaps elsewhere in North America. Yet sales remained flat in both regions in comparable terms. So can you really explain what was this in line, what you expected and what caused the sort of flat performance?

Yeah, I think it's fair that I take this question. So I think the Nordics performed as we were expecting, both in terms of the volumes and the kind of ASPS as Paolo said as well. And Canada, I think, you know, somewhat. But I think it's the North America in general that was a disappointment, as we say in the release. But there are things that we are doing, you know, to be better going forward there. But that was a disappointment.

And perhaps if you can just list what are really the key drivers for your 25 guidance expecting margins to improve what what should we think So it

Like there was in Paolo's slides as well, that we need to be better in terms of the efficiency, what we do at the factories and now under one kind of a director as well going forward. And also that means that raw material prices, we need to be better in our purchases and in the procurement as such. So I think it's It's all of that and nothing else.

Okay, that's all from my side. Thank you.

The next question comes from Samu Wilhelmsen from Nordea Markets. Please go ahead.

Thank you for taking my question, and welcome also, Paolo. Happy to see you on board. Maybe just a brief question. You already provided some details regarding the changes in the product mix and the key drivers behind that, most of the contract manufacturing, but are you able to disclose any details that what was the share of Q4? We know that you disclosed the figure for the full year, but are you able to give details on Q4?

We don't disclose precisely how much is the percentage of the contract manufacturing, but obviously to give a guidance, I mean, we can be around 10% of our total volume. That is more or less the guidance at this stage.

But in addition to contract manufacturing, overall sales of winter tires, both contract and euro manufacturing in Q4?

When we talk about winter tire, we're mainly manufacturing in our own manufacturing facilities in Nokia, when we talk about premium winter tire.

Okay.

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Jonas Haaja from OP. Please go ahead.

Hi, it's Jonas Haaja from OP Financial Group. Thanks for taking my question. Firstly, just to clarify the ramp-up costs, you had still some ramp-up related costs in the US. Can you clarify what these were in queue for and are you expecting these to end going forward? This would be the first one, and then the second one related to the margin during the Romanian ramp-up phase, so in 2025 and 2026. I recall you previously said or expected that the segment seeded margin should be in the high single digits, so can you please comment on or any updated views on this one, please?

Yeah, on the U.S. ramp, of course. So I think there was some type of a misleading kind of communication during the year when we said that we finished the kind of the finalized U.S. But there we meant at that point, and I have been trying to correct as well, that we did finalize the finished goods fair house there, you know, during the summer. but we were still in the ramp-up phase in terms of production throughout the last year. Of course, hoping as much as you guys are there on the other end of the line that we will not have any ramp-up type cost in the US. So everything has been installed and then we are running that full speed as we are doing at this moment. Then when it comes to the margins, I think that is still what we are targeting, but one needs to refer to our guidance there. But, of course, we are not deviating anywhere from the longer strategic horizon where we said what the margins will be.

All right. Thank you.

The next question comes from Thomas Besson from Kepler-Tuvriax. Please go ahead.

Thank you. I have two follow-up questions, please. First, can you please comment on the evolution in 2025 of your P&L and cash net interest and net tax expenses, please? That's the first follow-up question. And the second, you talk about the local-to-local strategy, looking out with the ramp-up of Romania helping in that direction. In 2025, what share of your TARs are moving from Europe to North America? Or maybe in 2024, what was the share of TARs sold in North America that came from other region trees?

So the first question was the interest expense. So there we are roughly somewhere around 35 million euros in terms of interest. And then on the taxes, I think we are going not on a cash flow base, but kind of on a P&L base. We are going towards the 20% tax rate in this company. We have, as you see in the balance sheet, some different tax assets. that we can, of course, release to cast against that tax cost so the actual cash out will be less than the 20% from the profits. But I don't want to comment an exact number there in terms of cash taxes.

Thomas, could you repeat the second question, please?

Of course, the second question was what proportion, how many units or what was exactly the volumes sold in North America that came from Europe in 24 or what do you expect to be in 25?

We don't disclose precisely. I can tell you that obviously the winter tire that we supply from our own factories in Nokia are going to North America. And then, of course, North America then is self-sufficient when we talk about the other part of the range. All the winter tires are today supplied by our factory Nokia in Finland.

Thank you very much. Can I ask you if it's possible to add your presentation on your website? Thank you.

There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

If there are no additional questions, it's time to finish the call, and the presentation should be on the website already, so you can find that there under investors. But let's finish this call. Thank you all for participating. Thank you, Paolo, for this first call, and thank you, Nico. Have a good day. Thank you very much. Bye.