Nokian Tyres (OTCPK:NKRK.Y) 2026 Capital Markets Day February 11, 2026 07:00 AM ET Company ParticipantsAkshat Kacker - Equity Research VPChris Ostrander - SVPJari Huuhtanen - VP of Group Business ControlJussi Koskinen - Chief Legal OfficerKimi Räikkönen - Brand AmbassadorPaolo Pompei - President and CEOTommi Alhola - SVPTron Gulbrandsen - SVPNone - Video NarratorConference Call ParticipantsArtem Beletski - Equity AnalystRauli Juva - Equity AnalystTim Hansen - AnalystModeratorGood afternoon from Helsinki and ...

Group 1 - The "Algeria Manufacturing" international brand exhibition was held in Algiers on January 30-31, where multiple brands announced the establishment of production facilities in Algeria [1] - Algerian football star Karim Matmour announced that his sportswear brand Fenec will officially start production in Algeria, marking it as a 100% Algerian brand [1] - Fenec's factory will be located in the western province of Relizane, in collaboration with Turkish textile manufacturer Tayal, which also has a factory in the same province [1] Group 2 - American sportswear brand Skechers will also begin production in Algeria, with Tradifoot as the exclusive distributor for several international footwear brands [2] - Tradifoot announced the opening of Skechers' first factory outside Asia in Bab Ali, Algeria, which will be the first Skechers production facility in the Middle East and North Africa [2] - The factory in Bab Ali industrial zone will cover an area of 22,000 square meters with an annual production capacity of 2 million pairs, although investment details and completion timelines were not disclosed [2]

Group 1 - The core viewpoint of the news is that GAC Group has reported strong sales growth in January 2026, with total sales reaching 116,600 units, a year-on-year increase of 18.47% [1] - GAC Group's self-owned brand sales exceeded 49,000 units, showing a significant year-on-year growth of 87.58%, while overseas sales increased by 68.59% [1] - The sales data marks the first monthly report since the establishment of GAC's self-owned brands, Aion BU and Trumpchi BU, with Aion BU sales soaring by 171.63% and Trumpchi BU sales growing by 51.06% [1] Group 2 - In 2025, GAC Group focused on three main tasks: stabilizing joint ventures, strengthening self-owned brands, and expanding ecosystems, achieving a total vehicle sales of 1.8135 million units for the year [1] - GAC Group's Aion BU has completed the first phase of channel integration, with 254 stores in 147 cities undergoing dual-brand upgrades, and plans to launch at least five new models in 2026 [1] - GAC Group's Trumpchi BU sold over 27,600 units in January, with a year-on-year increase of 51.06%, and ranked first among self-owned brands in a recent vehicle retention report [2]

Group 1 - The US-China trade war initiated in 2018 led to over $450 billion in tariffs imposed by the US on Chinese goods, which resulted in a shift in global trade dynamics, but not in the intended direction [2][4] - Despite initial movements of some manufacturing to Southeast Asia, the overall impact was an increase in global trade volume by 3%, with US consumers facing higher prices due to tariffs [2][4] - The trade war has slowed US economic growth and expanded the trade deficit, contrary to its original goal of reducing it [4] Group 2 - Countries like Vietnam and India were initially seen as potential beneficiaries of manufacturing shifts, but they faced significant challenges such as unstable power supply and logistical issues, limiting their ability to scale industrial operations [6][8] - Mexico has become the largest trading partner for the US, but struggles with security issues and a lack of skilled labor, hindering expansion into high-tech sectors [8] Group 3 - By 2025, it is projected that these alternative manufacturing countries will not be able to fill the gap left by China, which has a comprehensive industrial system and high density of manufacturing capabilities [9][11] - The trade war has inadvertently strengthened China's industrial base, as companies localized production and developed a more complete supply chain [9][11] - The global industrial landscape is shifting towards a unipolar model centered around China, with other nations unable to replicate its industrial ecosystem [11] Group 4 - China's trade surplus reached $1.2 trillion, with strong export performance, indicating a robust manufacturing sector that continues to lead globally [11] - The trade war has accelerated diversification in global supply chains, but China's position remains stable and influential in high-tech development [11]

Core Viewpoint - The Thai government plans to sue Neta Auto's Thai subsidiary to recover over 2 billion Thai Baht (approximately 400 million RMB) in electric vehicle subsidies due to the company's failure to meet localization production commitments since 2022 [1][8] Group 1: Legal and Financial Issues - The lawsuit is a response to Neta Auto's non-compliance with subsidy policies, which may lead to asset freezing or seizure in Thailand [1][8] - Neta Auto's parent company, Hozon New Energy, is undergoing judicial restructuring in China, adding pressure on its Thai operations [2] - The company has faced significant financial losses, with cumulative net losses reaching approximately 18.37 billion RMB from 2021 to 2023 [2] Group 2: Market Performance - Neta Auto entered the Thai market in 2022 and achieved a market share of 11.4% in 2023, ranking second in the local electric vehicle market [3] - Despite initial success, the company's sales in Thailand have significantly declined, with only 1,067 vehicles registered in the first four months of 2025, a 37.3% year-on-year drop [7] Group 3: Operational Challenges - Neta Auto's dealer network has shrunk from over 10 to just 3 operational dealers, raising concerns about after-sales service stability [6] - Complaints from Thai customers have increased, focusing on slow repair times and parts availability, leading to some insurance companies refusing to cover Neta vehicles [6] - The company attempted to sell its Thai operations for 1.2 to 2 billion Thai Baht (approximately 265 million to 442 million RMB), but potential investors deemed the brand too risky [7]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The consumer electronics industry will undergo a comprehensive upgrade from products to ecosystems. Technological advancements will make devices smarter and more flexible, and environmental protection will become a key requirement. The global consumer electronics market is rapidly differentiating, with emerging markets presenting new opportunities [64]. - Chinese consumer electronics exports face new development opportunities in 2024, with emerging markets playing an increasingly important role. Green compliance and local production are crucial for companies to break through [4]. 3. Summary by Directory 3.1 China's Overall Consumer Electronics Export Situation - In 2024, China's consumer electronics exports had new opportunities. For example, the total export value of laptops was about $78.8 billion, a year - on - year increase of 4.1%. Chinese consumer electronics led globally with full - industrial - chain advantages and technological iteration capabilities [4]. - Emerging markets such as Southeast Asia, Latin America, and the Middle East had increasing contributions. Smartphones dominated in some emerging markets, while wireless headphones and power banks grew explosively in Africa and Southeast Asia through cross - border e - commerce. Green compliance and local production became key factors for companies [4]. 3.2 Export Statistics of Major Chinese Consumer Electronics from 2022 to June 2025 3.2.1 Smartphones - From 2022 to 2024, the total export value of smartphones decreased slightly from $137.31 billion to $133.08 billion. In the first half of 2025, the main export destinations were Hong Kong, China, the US, and Japan, accounting for 47.7% of the total export volume. Japan and the Netherlands had relatively large export increments [6]. 3.2.2 Tablets - From 2022 to 2024, the total export value of tablets decreased from $30.55 billion to $23.34 billion. In the first half of 2025, the main export destinations were Hong Kong, China, the US, and Japan, accounting for 58.5% of the total export volume. Singapore and Japan had relatively large export increments [9]. 3.2.3 Laptops - From 2022 to 2024, the total export value of laptops decreased and then remained stable, from $95.94 billion to $78.85 billion. In the first half of 2025, the main export destinations were the US, the Netherlands, and Japan, accounting for 43.2% of the total export volume. Japan and India had relatively large export increments [12][15]. 3.2.4 Wireless Headphones - From 2022 to 2024, the total export value of wireless headphones first decreased and then increased, from $10.1 billion to $9.85 billion. In the first half of the 2025, the main export destinations were the US, the Netherlands, and Hong Kong, China, accounting for 42.5% of the total export volume. Australia and Germany had relatively large export increments [18]. 3.2.5 Power Banks - From 2022 to 2024, the total export value of power banks decreased from $2.13 billion to $1.86 billion. In the first half of 2025, the main export destinations were the US, Germany, and the Netherlands, accounting for 22% of the total export volume. Mexico and Thailand had relatively large export increments [21][24]. 3.2.6 Multi - Speaker Speakers - From 2022 to 2024, the total export value of multi - speaker speakers remained stable, slowly decreasing from $4.36 billion to $4.04 billion. In the first half of 2025, the main export destinations were the US, the Netherlands, and Germany, accounting for 35.8% of the total export volume. The Netherlands and Poland had relatively large export increments [27]. 3.3 Analysis of Consumer Electronics Procurement and Supply in Emerging Markets from January to June 2025 3.3.1 Russia - From January to June 2025, there were 156 purchasers, 202 suppliers, 5,900 transactions, and the transaction amount was about $400 million. The average transaction amount per purchaser was $2,589,234, with an average of 37 transactions and an average transaction cycle of 142 days. The average transaction amount per of the top 800 suppliers was $1,971,085, with an average of 27 transactions and an average transaction cycle of 145 days [34]. 3.3.2 Mexico - From January to June 2025, there were 164 purchasers, 316 suppliers, 4,500 transactions, and the transaction amount was about $200 million. The average transaction amount per purchaser was $1,217,639, with an average of 28 transactions and an average transaction cycle of 121 days. The average transaction amount per supplier was $581,756, with an average of 12 transactions and an average transaction cycle of 142 days [37]. 3.3.3 Vietnam - From January to June 2025, there were 1,000 purchasers, 2,000 suppliers, 70,000 transactions, and the transaction amount was about $2.25 billion. The average transaction amount per purchaser was $2,244,470, with an average of 69 transactions and an average transaction cycle of 65 days. The average transaction amount per of the top 1000 suppliers was $2,244,746, with an average of 67 transactions and an average transaction cycle of 64 days [44]. 3.4 Briefing on Relevant Policies for Consumer Electronics Imports in Emerging Markets 3.4.1 Russia - It is the 11th largest economy globally, with a growing consumer electronics market but relying on imports. China is the main source of its consumer electronics imports. It has differential tariff policies, requires EAC certification, and restricts parallel imports. Importers are required to use rubles for settlement [52][58]. 3.4.2 Mexico - It is the second - largest consumer electronics market in Latin America. There is a significant "near - shore manufacturing" trend. It has zero - tariff policies for locally assembled products, and all products need NOM certification. There are also tax incentives for new - energy logistics and solar energy transformation in warehousing [55][56]. 3.4.3 Vietnam - It is the fastest - growing consumer electronics market in Southeast Asia. It has differential tariff policies, requires import model registration, and offers tax incentives for foreign technology companies [60]. 3.5 Future Development of the Global Consumer Electronics Industry - The industry will experience a comprehensive upgrade from products to ecosystems. Technology will make devices smarter, and environmental protection will be a hard requirement. The global market pattern is differentiating, and companies need to adopt different strategies in different markets [64]. 3.6 Appendices - Include the top 50 lists of consumer electronics purchasers in Russia, Mexico, and Vietnam [66][68][70].

Group 1 - The Egyptian automotive market is experiencing significant changes, with improved supply and more reasonable pricing, allowing more ordinary families to afford new cars, largely due to the influence of Chinese automotive brands [1][4] - In 2024, sales of Chinese brand cars in Egypt are projected to reach 30,441 units, marking a 37.3% year-on-year increase, with a focus on models priced below 1.5 million EGP (approximately 230,000 RMB) [2][4] - The local assembly of vehicles is increasing, with a reported 31.7% year-on-year growth in CKD (Completely Knocked Down) vehicles, while CBU (Completely Built Up) vehicles only saw a 5.2% increase [7][8] Group 2 - The Egyptian government has implemented a national automotive industry development plan since 2022, aiming to promote local assembly by imposing higher tariffs on fully assembled vehicles compared to CKD imports [8][9] - The establishment of five new automotive assembly plants in Egypt within seven months indicates a growing investment interest from foreign automotive companies [4][9] - Chinese automotive brands are encouraged to invest in brand building, after-sales service, and customer-centric experiences to achieve greater market penetration in Egypt [9]

Group 1 - The company plans to establish a joint venture named Hongfa VinFast Electronics Co., Ltd. in Vietnam, with a total investment of 1,350 billion VND (approximately 37.67 million RMB) [2][5] - Xiamen Hongfa Acoustics Co., Ltd. will contribute 1,080 billion VND (approximately 30.13 million RMB), accounting for 80% of the total investment, while VinFast will contribute 270 billion VND (approximately 7.53 million RMB), accounting for 20% [5][9] - The investment aims to deepen international cooperation and localize production, responding to VinFast's strategy of localizing its supply chain [13] Group 2 - The investment has been approved by the boards of both the company and its subsidiary, and does not require further shareholder approval [6] - The funds will primarily be used for the construction, production, and operation of the joint venture, including leasing facilities, purchasing equipment, and working capital [5][11] - The joint venture will focus on local production of automotive components, enhancing the company's international business development and brand influence [13]

Core Insights - The Egyptian automotive market is experiencing significant changes, with improved supply and more affordable prices, allowing more families to purchase new cars. Chinese automotive brands are playing a crucial role in this positive shift [1][4]. Group 1: Market Dynamics - Since 2000, several Chinese automotive companies have achieved local production in Egypt. According to the Egyptian Automobile Dealers Association, sales of Chinese brand passenger cars are expected to reach 30,441 units in 2024, marking a year-on-year increase of 37.3% [2]. - The majority of the 18 new models launched by Chinese brands are priced below 1.5 million Egyptian pounds (approximately 230,000 RMB), which is within the acceptable price range for Egyptian consumers [3]. - The Egyptian automotive market is characterized by a large potential consumer base due to its population of over 100 million, with a high proportion of young people and a relatively low car ownership rate, indicating significant demand for first-time purchases and upgrades [3]. Group 2: Economic Factors - The Egyptian economy has faced foreign exchange shortages, leading to restrictions on car imports and resulting in high prices and limited supply. However, the market is now transitioning, with car prices gradually decreasing due to increased competition and local assembly [4]. - The strengthening of the Egyptian pound, increased local production, and reduced shipping costs are contributing factors to the declining car prices, which are expected to continue at least until 2026 [4]. - The number of foreign automotive manufacturers investing in Egypt is increasing, with at least five new assembly plants announced within seven months [4]. Group 3: Local Assembly and Tariffs - The local assembly of vehicles significantly reduces costs, as completely built units (CBU) face high tariffs ranging from 40% to 135%, while local assembly can lower tariffs to between 7% and 9% [7][8]. - The Egyptian government initiated a national automotive industry development plan in 2022, aiming to promote local assembly and enhance the automotive parts industry, ultimately establishing Egypt as a regional automotive production and export hub [9]. Group 4: Future Outlook - Chinese automotive brands are expected to thrive in the Egyptian market due to their competitive pricing and quality. There is a belief that more Chinese cars will become popular, especially those manufactured or assembled locally [11]. - Long-term success for Chinese automotive companies in Egypt will depend on investments in brand building, after-sales service, and customer-centric experiences [11].

Summary of the Conference Call for Leshu Comfort Industry Overview - The penetration rates for diapers and sanitary napkins in Africa are currently 23% and 31% respectively, indicating significant growth potential. The compound annual growth rates (CAGR) over the past five years are approximately 6% for diapers and 9% for sanitary napkins. The market size is expected to reach $2.6 billion and $850 million respectively by 2024 [2][4] Company Insights - Leshu Comfort is a leading brand in the African market for diapers and sanitary napkins, with the highest sales volume share in diapers and the second highest sales revenue share, only behind Procter & Gamble. The company also holds the top position in sanitary napkin sales volume [2][6] - The company is positioned in the mid-to-high-end market, offering high cost-performance products with a stable gross margin exceeding 30% [2][6] - In 2024, Leshu Comfort's revenue is projected to reach $450 million, with an adjusted profit of $98 million, a gross margin of 35.2%, and a net profit margin exceeding 20%, showcasing strong profitability driven by low-cost operational strategies [2][8] Competitive Advantages - **Local Production and Channels**: Leshu Comfort has established localized production bases in East and West Africa, enhancing brand recognition and supply chain capabilities. The company plans to expand into Latin America [4][5] - **Market Share**: The company leads in diaper sales volume and ranks second in sales revenue, demonstrating strong brand influence [6] - **Population Growth**: Africa's annual population increase of over 40 million provides a substantial market base for diapers, supported by a youthful demographic structure [4] Financial Performance - The financial performance for 2024 indicates a revenue of $450 million and an adjusted profit of $98 million, translating to approximately 3.2 billion RMB and 700 million RMB respectively. The gross margin stands at 35.2%, with a net profit margin exceeding 20% [8] Future Growth Strategies - Leshu Comfort aims to expand its product range and penetrate new markets, including Latin America. The company plans to enhance existing product line penetration and optimize supply chain management to maintain high gross and net profit margins [3][9] - The company is also focusing on expanding into personal care and household cleaning categories, which hold significant potential in emerging markets [13] Channel Strength - Leshu Comfort has a robust channel network, with over 60% of revenue generated from wholesalers and more than 30% from distributors. The company collaborates with over 2,100 wholesalers and 400 distributors, maintaining long-term relationships [11] Market Environment - The African market is characterized by currency depreciation and instability, making efficient channel turnover and product sales crucial for distributors. Leshu Comfort's high cost-performance products help distributors expand their business with minimal inventory [12] Strategic Use of Funds - The company's funds will be allocated for capacity upgrades, marketing in emerging markets, and potential strategic acquisitions to support ongoing growth and strengthen its industry position [14] Performance Expectations - In the first four months of 2025, the company achieved a 13% revenue growth, with expectations for higher growth throughout the year. Long-term projections suggest the company could maintain double-digit growth rates, with a valuation of approximately 17-18 times earnings for 2026, indicating a favorable position compared to similar companies globally [15]