Fiskars Oyj Abp

Hello and welcome to Fiskos Group's Q4 and full year results webcast. I am Noora Huttula from Fiskos Group's Investor Relations and I am here with our President and CEO Natalie Ahlström and CFO Jussi Siitonen. Natalie and Jussi will first take you through the highlights of the quarter and the year and after that we have time for your questions. You can already type in your questions in the chat during the presentations. Natalie, please go ahead.

Thank you, Nora. And welcome everybody to be here now to hear about our Q4 and the full year of 2024. First, a few of the highlights. We are very proud how we finished the year. It's been a tough year and we finished strongly with an all time high EBIT. So very proud. strong foundation that we are having now in place despite the weak volumes and the consumer sentiment that we have had. This all-time high EBIT was driven by also all-time high gross margin of 49.4% in Q4. So really a strong finish to the year. This also led to robust cash flow in Q4, and it shows that we are returning to normalized level on cash flow, which also then leads to that the board is proposing to the AGM that we are increasing the dividend to 0.84. And then the guidance, we are improving from 2024 level our EBIT. I'll come back to that later in the presentation. So these are the highlights. Strong finish to the year, all-time high EBIT in Q4. And with that, I hand over to Jussi.

Thank you, Natali. Let's start first with Q4. So on Q4, it says slightly down 2.4% there, which was very much expected. And overall, we can say that Q4 was pretty well in line with the guidance we gave in October for the rest of the year. More importantly, as Natali mentioned, EBIT now record high, Q4 EBIT there of 42.9 million there, 5.2 million up or 14% up from the previous Q4. It was a combination of gross margin improvement, we had record gross margin Q4, and then those cost-efficient programs we initiated already in 2023. I'll get back to that a bit later. As I said, when we had all-time high quarterly gross margin there, both BEAs, both Vita and Fiscus, improved versus the same period last year. Cash flow in Q4 very solid of 69.4 million. However, it was down from all time high Q4 year before. On comparable earnings per share, we were up 17 cents there to 0.57 and then cash earnings per share was down 26 cents there to 0.85. On a full year basis, the guidance what we had slightly about last year, we were up 1.1 million at 1.11.4 there. Top line down 5% organically, including Georg Jensen, which was now first year, first time full year in our books, we were up 2.4%. Strong gross margin also, and again, also on full year basis, both BAs improved last year. Bearing in mind that what we have said about our long-term gross margin target being there at 49% or over 49% by end of 2025, we are well on track towards that target. Comparable earnings per sale for full year, $0.08 up and then cash earnings per sale down almost 50%. That was due to this record high cash flow what we had in 2023. If we then dive a bit deeper to those savings and EBIT bridge what we had for full year. So I said in Q4, we continued benefiting from those saving productions that we had. And then also when the negative volume impact was less in Q4, we ended up for the full year that savings fully compensated impact of declining volumes. The full year net savings were approximately 40 million, out of which approximately 10 million was in Q4. And I need to highlight that these are net savings, so they are including also the salary inflations, what we experienced throughout the year 2024. The plans we introduced in 2023, especially when it comes to SG&A savings, those plans are now closed and the savings are pretty much in to our P&L. Supply chain plans also introduced in 2023, they continue still delivering savings in 2025. Plus what we announced in October, when we talk about this Vita and Fisca split, they continue also now in 2025. There are some items we need to take into account this year, and of course, US tariff discussion, which is currently, the situation there is very dynamic, as you all know. USA is approximately 30% of group net sales and approximately 50% of Fiscus BA. And most of the products sold in the USA are manufactured outside. The plans that we have in place, of course, is that we are very much monitoring and diversifying our sourcing footprint, what we have in Europe and what we can benefit in Europe, what we have in other Asian countries there. So based on the current situation, what we have seen, we believe that we can mitigate the current expected tariffs. And overall, this is an industry wide issue in our industry. So all our peer companies are very much in the same situations. And therefore, it's most likely that all these have pushed back the prices. As well, the other topics that we have, we are looking for exemptions if possible. And as I said, when the situation is quite dynamic at the moment, we are monitoring it very carefully. Then moving to cash flow. So I said very strong free cash flow what we had in Q4 and very strong rebound there from Q3. That took us back to full year historical levels. So we were there at roughly 82 million for full year. This just shows how year-end loaded our free cash flow is. So Q4 delivered 85% of full-year cash flow. Then on Net-a-DBDA, it's following our seasonal pattern, what we have. So we are always coming down in Q4 on Net-a-DBDA. Now we went down to 2.55, which in our terms, we are the practical target of 2.5x. Then on dividend, supported by solid cash position, the board is proposing to shareholders meeting a dividend of 84 cents, which is 2 cents upwards last year. This is well in line with our dividend policy, i.e. stable overtime increase in dividend. 79% of payout when it comes to comparable earnings per share, and then 60% of cash earnings per share. Also our dividend yield 5.2% based on the average sale price last year and 5.6% based on yesterday's closing is quite attractive with this dividend. That's very shortly where we are with finance hours and now handing over to you Natalie.