Hiab Oyj Unsp/Adr

Okay, I think the clock is now one here in Helsinki, so I can welcome you to HIEP's free silent call ahead of our fourth quarter results. But still some people joining, so I'm letting them in. So we will start for having a presentation. by Mikko Puolakka recapping the third quarter results and any notable releases during the fourth quarter. After that one, we will have a Q&A session. You can post the questions in the chat or then use raise your hand function. I will also take any questions from the telephone lines. Just a note that this call is recorded and will be then later available on IAB's website. So, with that, over to you, Mikko.

Thank you, Laki, and Happy New Year also from my side. So, a quick recap on our quarter three results, then a couple of words about the releases and the developments that we have seen. during quarter four, and then like Aki said, questions and answers section. About quarter three, so our order intake was 351 million euros, that was down by 8% year on year, and based on the first nine months, the order intake was more or less flat, compared to the previous year. So this was now the 12th quarter, consecutive quarter in a row and our order intake has been fairly flat. Our last 12 months order intake has been roughly on the level of 1.5 billion euros. And primarily the order kind of intake headwind we have seen in the Americas region, especially while in Europe we have seen some improvement in the overall market, and also in a couple of second markets like defense logistics and the wind segment orders, what we have announced also earlier in 2025. When we look geographically, the first nine months EMEA, has been up by 30%, America's down by 14%, very much driven by the tariffs related uncertainties, especially smaller customers withholding their investment decisions, while some kind of bigger home improvement customers have been still quite nicely placing orders. On a positive side, there has been a positive momentum in defects logistics, we have a very good pipeline in that area. Of course, the deals typically kind of revenue we recognize from defense logistics orders, typically over multiple years. And then the energy segment, like I mentioned already earlier. All in all, there is a robust replacement demand both in EMEA But also in America, like I said, in the U.S., especially the larger kind of home improvement customers have been doing their thing. But on the kind of minus side, trade tensions in the U.S., those have increased the customer's uncertainty. customers uncertainty and that's why we have seen especially in the smaller customers in the US quite cautious ordering activity. Our sales decreased in quarter three due to the low order book. Sales were basically on the same level what we had the order intake in quarter three In currencies, we had in quarter three roughly 2% points negative impact. And if we look at the year-to-date, the nine-month sales starts down by 6%, primarily coming from the U.S. market, lower order intake, especially in the early part of the year. America's sales was down by 9% during the first nine months. EMEA was down by 4%. APAC sales grew slightly in Q3, but year-to-date, September, more or less flat on year-on-year basis. We have had good development in the ECO portfolio. circular solutions and climate solutions. So to date, 38% of the total sales. If we look at our comparable operating profit, so especially in quarter three, our comparable operating profit was negatively impacted by the lower US equipment sales. That impact was approximately 20 million euros in our comparable operating profit. Cross-profit margin decreased by 80 basis points, also very much coming from the US kind of lower utilization. SG&A costs we have been able to reduce year on year, but that's not necessarily enough to compensate the quite sizable decline in the U.S. equipment sales. And that's why we have also announced in connection of quarter three the 20 million euros cost savings program in order to protect the profitability. in 2026 if this kind of market activity would continue in the coming quarters. Key takeaways from quarter three. So overall, the market uncertainty has continued. Overall, we have not seen any dramatic changes compared to the previous quarters, so a gradual improvement in EMEA, while in America, especially in the US, the customers' decisions have been impacted by the tariffs situation. Despite the market situation, we have been able to improve our comparable operating profit if we look at the rolling 12 months performance and as mentioned we have started the planning for the 20 million euros court savings program and this would be 20 million euros lower costs compared to the 2025 level. Nothing has been changed in our strategy. So even despite the current current situation in the U.S., we see that the U.S. market is able to offer us good growth opportunities in the future by addressing those white spaces, what we have, for example, in the central and western part of the U.S. Also services and the focus on four key growth segments have still intact in our strategy. So overall, no changes in our strategy. Despite the lower top line, our cash flow has been very strong in the first nine months, and our balance sheet is also very strong. Offering, for example, in quarter three, if we would book the quarter three balance sheet, that would offer us roughly 800 million euros M&A firepower. And with that kind of 800 million euros additional debt, we would be still below the 50% gearing target. Couple of releases from quarter four. So we announced in the first week of January, the acquisition of ING grains. ING has been founded in 2010, last 2024 revenues 50 million euros. We had already before the ING acquisition, a business in Brazil, Argos, which we acquired back in 2017. Argos has been mainly focusing on light and medium load of range, while ING brings into our portfolio heavier load of range in the Brazilian market. actually quite nice complimentary acquisition for our Brazilian business. Plus then offering also sales channels for the Southern American markets. We also announced the proposals by the nomination board for the board of directors So the current board members would continue, except for Ilkka Herlin, who has informed that he's not available for re-election in the AGM, which is to be held on 24th of March. And the other press releases that we have announced during quarter four, you can find in our website. And as a last topic, our outlook for 2025 is unchanged. So what we have said already earlier this year, we are aiming at reaching higher than 13.5% comparable operating profit. And as we are now at the end of the year, I would like to remind you also about our dividend policy, which is 32, 50% of the net income.

Thank you, Mitko. We can jump to this consensus already now and then take the Q&A. At the change of the year, we also changed the provider of our consensus services. So we now work with Modular Finance. So all of the analysts will be, sales analysts will be reached out by Modular Finance to collect the numbers. the consensus is now available on HIAP's website, hiapgroup.com. But with that, we jump to Q&A, and Antti Kansanen was first with his hand. Please, Antti, go ahead.