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2016-02-24

Nokian Tyres: 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 T?htinen
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

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http://news.cision.com/nokian-tyres/r/nokian-tyres--incentive-scheme-to-...

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