Raisio plc

to follow up Raisio Oyj in the year 2024 to the publication of the decision. And today our topic is the last quarter of the year, the year's total income and this morning's constructive news. My name is Pasi Flinkman and I am the CEO of the company and here by my side, as usual, our CEO Saarinen Mika. 2024 was a year of volume growth and the last quarter of the year was quite two-fold in the sense that the health needs developed quite positively in all main markets, in volume, we took market shares and got good growth at the same time the health care units in the segment, there was a challenge. In the background, there was Vilja's calculated market prices and a high price competition. In addition, Kasvistan was Ester's sales volume dropped more because of the timetable, that the actions, how they happen to be timed, in this case, part of these actions which is more of a question of duration, but it still affected the results of the last year's quarter. What is more important is the whole year's development, where the turnover growth is 3.3%, which is quite okay in these market conditions. Unfortunately, I do not have the latest European-wide market data on market development yet, but for example, the Finnish market, if compared to the daily commodity trade union, the latest information tells that the daily commodity trade in Finland is growing by 1.9% and food and non-alcoholic beverages by 2.1%, so compared to that, However, a 3.3% increase is clearly a better increase in general market development. The revenue level has increased by about 3%, and it is perhaps important to note that we have continued investments and investments at a higher level sales, marketing and innovation, which will bring us growth in the future. There has been a significant increase in the level this year, and with this long-term progress, the goal is also to move forward. From the financial sector and the financing position, from a better expert, Mika.

Thank you, Pasi, and greetings from my own side. So here you can see, I could say very familiar numbers, but still reinforced numbers that we are used to showing, so our revenue per year level is already close to 40 million, our implemented investments last year were more than 7 million, so they matched last year's level, In our own equity and our capital stock, there is no significant change. The debt position of the net revenue, that is, our net equity, has increased significantly. Our net revenue is already minus 70 million euros. We have a fixed salary. Also in the capital stock market, there is an increase of 10%, which, of course, still improves the situation. also from this side, from the outside of the results calculation, from the balance sheet, a very good achievement and a balanced one. From what we can see, it is indicated here that in the beginning of the year, we communicate this through the result, and at the same time it should be noted that also in terms of sales and volume development, we are very positive, but the result is that every 25 years the main weight is still met and it is allowed to expect to improve. On the side of the win-win, the recommendation is to be familiar to the meeting, so as we have previously communicated, in the year 2025, in a situation where the company size looks like this, the 14 cm would be at the level of a few quarters of a year, absolutely, and there is also a profit margin of some kind, like the increase rate. So from our very strong Taser package point of view, a very symmetrical suggestion in that regard. A few more words about the segments. Terveyset elintarvikkeet, jota Pasi tuossa alustikin siten, että koko viime kuluneen vuoden ja oikeastaan joka kvartterilla siellä se kehitys oli tasaisempaa. Katsotaan sitä toista segmenttiä sitten kohta, mutta mennään ensin tästä käsin, eli myynnin kehityksen kuvaus on tällä tavalla tarkasteltuna mielestämme aika havainnollinen, eli tässä ensinnäkin alhaalla vasemmalla näkyy nyt meidän branded consumer products and the markets, the three main market areas where we operate, we have a great deal of weight on the domestic market and the surrounding countries and then on the other hand Western Europe dominates very strongly this our doing and they are also, as you can see here, a long series of green clouds, which is an extremely great thing in these conditions that It seems to be inflationary and so on, as it has been experienced here, so it is very tempting and the promise to wait for these to continue. Central and Eastern Europe means to us today Poland and Ukraine, where of course in the cash market, after all, Ukraine has natural reasons why the sale there has been challenging, but an operational organization, after all, still a great achievement. As you can see in the numbers of this segment, we can see that the quarter growth of almost 5% was achieved in Q4. The performance improved by almost twice that. As we have seen, we are grateful to our major markets, the United Kingdom as a very significant individual country for us. from the sales of the fourth whole group and also a very large part of the results, so there the volumes have started to increase, which is of course a great news for us and also there promises to expect the opposite. In Finland, of course, we are present with all our brands and especially the newer categories for us, i.e. drinkable and soda-based products, the sales there have been very positive. We have got a new market for us, or a market that was not there three years ago, and it has been doing quite well. We also have very respectable goals in relation to that as we move forward in the years. The vegetable protein market It has been a challenging market and it has been a challenge for us. We will discuss it further today. This is a picture of what I mentioned during the last three years. We have also come to new, growing, but especially to new categories. Here you can see the growth of our new products. contribution to the whole of Northern Europe's trade, a large part of it is shown by these drinking and partying products, and of course there is a challenging but potentially huge and huge market for us. As a non-dairy operator, there is also a lot to be gained. Then about the material part, it has been mentioned that it has been more volatile than last year, I could say that it has been more volatile than the branded part in the last few years, and here we first find out in the picture what the BISMEXs are, i.e. very broadly, i.e. different types of plant-based material parts and for a variety of end-users, for a variety of industries, also Peneco licensing is part of this, and where we are European-centred in consumer products, here we are in the most global direction. Of course, the main weight is also in Europe, but we also take Europe further. That seems to be the question. But this shows that the turnover in the fourth quarter remained 5% from the comparison period, net income was significantly lower this is a matter where there are a few, Pasi went through them a little bit, but maybe we'll repeat them, so especially this kind of non-gluten-free grain, which we have as our number one consumer product, the market has gone very long and has developed very well in volumes, evenly and well, but perhaps the more traditional and home market-selling ingredients There, the challenges to profitability came specifically from raw materials, and because of that, through the decrease in sales prices as well, in a short period of time, was described, for example, in this Q4. And then Pasi also mentioned this Penecol material part, i.e. the continuation of Ester's volumes, so that still, for example, in December, a significant part moved forward, but This is more of a quarter than a year-long phenomenon. In that sense, the fourth one was a bit of a separate one. I wouldn't take the long-lasting management practices for granted. But this, Pasi, would be about segments, so if we have a few more questions from here on.

The celebration is celebrated to the greatest extent. We have two big birthdays this year. The first one, of course, is Penecol, This year it will be 30 years and for PeneCol it is typical to have long-term stress in doing it It has been planned for a long time, developed and we have also received help from millions of people in reducing cholesterol But the work has not finished yet, but we are continuing and long-term and it is also being developed in the future. It is a very natural thing for Benekoli. Synttärisankari is celebrating its work and will be visible to consumers later this year. On the other hand, our second Synttärisankari, Eloveena, who has brought perheihin täyttää eloa ja sen 100 vuotta niin on lähtenyt jo vauhdikkaasti liikkeelle, näkynyt katukuvassa ja kaupoissa. Ilahduttavaa käydä kaupassa, on se isoa tai pientä, niin on näyttäviä esittelyitä ollut vuoden alusta ja on myöskin kaupallisesti onnistunut erittäin hyvin. Ja juhlavuoden kunniaksi nämä on saanut useat Elovena-tuotteet tällaisen Juhla asun päälle näkyy brändissä ja tuotteissa ja myöskin sitten näitä Elovena brändivaatteita on myöskin saanut ostaa meidän Papap-myymälässä Helsingissä mutta myöskin verkkokaupassa osoitteessa elovena.fi sieltä löytyy kaikennäköistä hienoa ja sitten oli tossa alkuun puhetta näkyen kolmannesta aiheesta The third topic is structural changes. This morning, we have written a book with Valio, in which Raisio sells the plant protein business and the Valio brand. The purchase price is 7 million euros. This trade and transaction itself does not have a significant impact on the 25-year turnover. The trade price is well in line with the value that is in our book. On the other hand, business operations have been crucial for the company, and through that we will see a return improvement in the future. The purpose is that The business will move to a new owner by the 25th of March. On the background, I would like to mention that we still strongly believe that the planetary food choice is important for the environment and people's health. We will also contribute to and we clearly want to be part of the solution to these large issues of the population and we will actively contribute to them. In this business, however, the growth has not met our expectations and we have not achieved such a scale in the speed we have been looking for. we have to come to the conclusion that we are better off giving up and it enables us to meet our resources in such businesses where there are better and faster opportunities to create economic added value as well. Valio is definitely a good home for this business and brands good conditions for them to develop it forward. At the same time, I am satisfied with the fact that Raisio has been and still has the courage to go to new businesses and to try and find it in the future. At the same time, there must be courage to also realize that hey, it's time to move on and move forward and that is also found. And this is Uskon, että sekä liiketoiminnalle että Raisiolle mahdollisuus lähteä taas uuteen alkuun ja entistä viisaampana ja kokemuksilla varustettuna. Ja tosiaan jatkossakin tulee tämä ruokamurroksen edistäminen ja innovointi kaiken kaikkiaan osa meidän strategiaa ja me tullaan tästä meidän to tell more about the strategy during the fall and then we will also organize this at the end of this year then this kind of capital market day where we will tell more about it and go deeper discussion about the strategy components thank you, this was our prepared materials and hopefully we have also received questions and it seems that there are some that you would like to read.

Yes, let's take a look at some of the arrangements here. So here we ask, for example, what are the background predictions for the year 2025 guidance? How much do you expect the volume of the market to grow? And how would you comment on the magnitude of price increases? What are the key factors for the growth of the results this year? I could start with the fact that we do not guide at all, for example, the development of our business, but rather the results the development of the food chain. As Pasi said at the beginning, this year it seems that there will be no explosive growth, probably the consumer will not be seen in the food market. It has now quietly come when the results are that we have also been followed by large international giants in the last few years, so they are in the same market as other manufacturers. growth is not expected to be quite dramatically strong. Instead of determining the magnitude, we are looking forward to a growing turnover and we are looking forward to growing volumes, but relatively moderately. And the result, in fact, we are looking forward to improving and, as mentioned, also now in the implementation of this trade, our today announced sale, so in part we can also improve the of the company's revenue in the end of the year, so we will probably come when the year is a little longer and when we get to the closing stage of this trade, we will probably be ready to define our two piece guidance, so today it's a little too early.

And generally from the market conditions All forecasts for the year 2025 in general economic development and market development are clearly more positive than they were 12 months ago. Of course, growth and market development will probably be emphasized in the economy in general in the following half of the year in general economic development. At the same time, about the market development, this year we have grown faster than the market, and we have all the conditions for that next year. We have taken market shares and we have grown outside of Finland. Half of the turnover comes from outside of Finland, and the goal is to continue that development.

Yes, and here is the next question, if we look at the order, so here we are asked, do you see a certain share of the growth of the U.K. business, H1 at 24, or is it a question of the ongoing trend?

There are both elements, yes, we have improved the share, but also compared to the round-up of foreign markets and with this kind of with commercial activation, it has also been important that there are also the requirements to grow further from this.

Next, let's go to the material part, so how can you improve your competitive ability with 100% of the traditional agricultural materials of the homeland, or can you?

At least there are some areas where it is clearly more visible that we can differentiate and create added value and improve competitiveness. In some of the most specific products, for example, in the gluten-free diet, there is clearly a skill that can be We are particularly competitive and we can develop it. Then the more bulkier basic flour and yeast, it is difficult to take significant deductions. There, competitive ability arises from the ability to react and also from effective processes, and we can continue to empower them.

Good. And then there's more. What are your views on the growth of marketing investments in the year 2025? Or will the scale of the results be better in the final year? I can start with this. If we schedule 2025, then in the OPEC side, i.e. in the case of investments, growth investments in this area, the range will absolutely grow. Of course, the assumption is also that the demand and volume The view is quite expected, naturally, but let's start with the fact that this investment, which is a contribution, has a higher absolute amount than last year. Is it necessary to complete it?

Yes, it is not. Well, maybe to say that it is more important in this context not to save money, but to make money. For that purpose, we make a long-term commitment to the business and with the idea that it will pay itself back. We get better prices, more viable consumers and more satisfied customers, which then ends up to the end of the line.

Very good. The questions we have received and a deep thank you for them have been answered. With that said, we are probably ready to wrap up this webcast and thank you all on the other side of the screen for your activity. From our side, thank you and happy new year.

Excuse me, there was another question in the last few seconds. What factors affect the most when the Herkispiinit acquisition fails? What next? In short, I would like to comment that the market's development was completely second class at that time The market grew very strongly, both in Finland and abroad Last year, the plant protein market was actually in decline The starting point to assume that the wind will blow in the market was probably one of the things. And then scaling it takes more time probably than it is... Achieving the scale takes longer than what is estimated in the company at the beginning. And at the same time, I want to emphasize that I think it's great that Raisio has been and is the courage to go into new businesses, to invest in them, and there is such entrepreneurship and that is also ongoing. This is also a new beginning for this business. And then a new start for Raisio, to start as the most intelligent and experienced and to hire the next companies and some of them will surely succeed and some of them will probably also stay on the target But it won't stay, it will come down in the name of something Here I am, Leija

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