Kamux Oyj

Good morning and welcome to Kamuks' Q3 results presentation. My name is Katariina Hietaranta and I'm head of investor relations at Kamuks. We have our CFO Enel Sintonen and CEO Juha Kalliokoski presenting the results, after which we will have a Q&A session.

Go ahead, Juha. Thank you. Good morning. My name is Juha Kalliokoski and I'm back as the CEO of Kamuks since October 16th. As Katariina said, Enela, I shall now guide you through Kamuks Q3 results. Here is agenda for the presentation. As usual, we shall first take a look at the quarter in brief, Kamuks market positions and what our showrooms network looks like at the moment. I shall then lead you through our review by country, after which Enel will present in more detail the financial development of the company. Towards the end of the presentation, we will take a look at where we are in terms of our long-term targets, a few words about our strategy, and at the end, we will have a Q&A session. During Q3 continued our focus on profitability and improving the financial health of the company. We have successfully reduced the average price of the cars we sell as planned. This contributed to revenue decrease, although the main component was the decrease in the number of cars sold. Our revenue decreased by 17% Our focus on profitability has paid off and the gross margin has increased from 9.8 to 10.9%. The improvement gross margin was however not sufficient to compensate for the decrease in revenue. And subsequently our gross profit decreased. Our adjusted operating profit decreased from 5.5 million to 4.3 million euros. Our cash flow has been extremely strong, 31.5 million euros in January to September, and our inventory is at a healthy level as we enter the quieter period towards the end of the year. Revenue from the integrated services decreased from 14.6 million euros to 13.7 million euros as a result of decrease in revenue and number of cars sold. However, the share of integrated services in revenue increased by 5.2 to 5.9%. Consumer preference towards affordable cars continued in all our markets. Customer satisfaction was a good level and a targeted level, and NPS was as high as 63 in Finland. Used car markets grew in Finland and Germany, while in Sweden the market was flat. In Finland, finally, it was the sales by dealers that grew during the quarter, while earlier in the year market growth came mainly from consumer-to-consumer sales. Kamux continues to be the number one player in the Finnish market, measured in number of cars sold. In Sweden, we are number eight, and in Germany, our market share is still very small. A few words about the new car sales. On a year-to-date basis, the growth in new car registration in Europe has been very modest, less than a percent. In Kamux operating countries, registration has grown only in Sweden, While in Finland and Germany, the new car market is either flat or negative. In the big picture, Camus is Europe's fourth largest seller of used car cars in Europe. And those figures are from last year. Here is an update on our showrooms network during 2025. As of today, we have 68 showrooms. In Finland, we have closed two showrooms, Savonlinna and Manselä, during the year. By the end of November, our showroom in Jyväskylä, central Finland, will move to new premises that are owned by us and build to suit our needs. The total number of showrooms in Finland is now 42. We have not made any changes in Sweden, where we continue to have 17 showrooms. I shall come back to our plans in Sweden later in presentation. The Swerin showroom in Germany was opened in early July, and we currently have nine showrooms in Germany. Moving to the comments per country. In Finland, we succeeded in consumer purchase during Q3 very well. This is particularly important now as importing from abroad is not easy due to the low level of prices for used cars in Finland. Our strong focus has been on more profitable sales, which has led to decreased volumes. We are continuously working to find the right balance between volumes and margin. Cross-margin per car sold increased both in euros and in percentage, which we are very satisfied with. For the quarter, Finland cross-margin grew from last year 10.3% to 11.6%. The adjusted operating profit margin increased slightly, although in euros we fell behind the comparison period. Adjusted EBIT margin is also above the 4% level. As of September 1st, Joni Tuominen was appointed managing director of Kamuks Finland, having acted as an interim MD since mid-April. Sweden. It has been a pleasure to see our Swedish team making a strong turnaround. Compared to Q3 in 2024, our operating results improved by one million euros, which is a really great achievement. In Sweden too, the focus on profitability has had a downward impact on sales volume. but we have succeeded in increasing the margin per car as well as significantly strengthening the penetration rates for both financing from 48 to 53% and Kamux Plus from 16 to 25%. Customer satisfaction has also risen close to the group's target level and NPS was 58 in Q3. We have completed the assessment of our network in Sweden and decided not to make any major changes at the moment. The current network is sufficient for a profitable business in Sweden, and it also allows growth. We believe it's possible to have a profitable business in Sweden, and it's very much in our plans. Our team in Sweden has already made a clear positive turn by progressing according to the plan for two quarters in a row. And the results are already visible both in the financial KPIs as well as operational efficiency and customer feedback. And then Germany. Challenges on car selection and volumes continued during Q3. Sales volumes were weak, primarily due to the car selection that did not match the demand well enough. The revenue was impacted by the weak volumes and the margins by the inventory management measures we took, selling out or getting rid of low demand stock. Subsequently, the operating results was negative. Markus Mezzori started as the managing director for Germany on the 1st of July, and together with him, we have started to turn the business around. As in Sweden, in Germany, we work in close cooperation with Markus to build daily operative routines in line with the CAMUX concept. Going forward, this will help us to achieve first decent car margins and thereby building the profitability of the business and supporting our ability to grow. As one of the first steps, we modified our purchasing process and ensured that our selection meets the demand better. And then here you are, Enel. You are going into more details about the financials.

Thank you, Juha. As noted by Juha already, our focus has been on financial health and what it means. First, our focus continued to be at car pricing and margins, and we continued to be selective on deals. And second, we continued to work with inventories with focus on capital efficiency, fit with volumes, car selection fit to consumer demand. and key achievements of the quarter were, we achieved clear improvement in margin and profit per car. Both Finland and Sweden progressed as planned. In Germany, as noted by Juha already, we faced challenges and we work intensively and with discipline to turn the profitability into the right direction there. We reached our targets on inventory levels and progressed well with inventory structure and selection fit. Declined inventory levels contributed well to liquidity. We have now 20 million euros cash at the end of the period, and it enables growth as well as investments in the future. Focus on profitability had also some adverse impacts. At the expense of being selective on deals and targeting higher margins, we lost some of the volumes. Volumes drop exceeded our assumptions and we needed to issue profit warning in October. Part of the volume drop, not significant though, was due to smaller showroom network. And here are the numbers and summarizing key financial ratios. Revenue declined 70%. Key drivers were underlined earlier. Gross margin to revenue improved 1.1 percentage points, which agrees with our targeted levels and was based on our plans. Operating result to revenue improved from 1.5 to 1.8%. Key contributors were improved gross margin and almost absence of items affecting comparability. Adjusted operating result declined slightly from 2% to 1.8%. Operating costs did scale, however, not at full scale. Inventory days improved slightly. However, this is the area we have clearly room for improvement and work intensifies on this measure. Return on equity calculated from rolling 12 months result is at clearly unsatisfactory level, especially due to two notably weak quarters of Q4-24 and Q1-25. In equity ratio, we have reached 50% level. As a summary, the financial performance of the quarter demonstrates that we are directing our focus and efforts in the right areas. A key area to improve is finding a right balance between profitability and volumes. And after two quarters of improving our daily routines on car profitability and inventory fit, as well as strengthened gas position, I think we are better equipped to go for volumes. We do it step by step with focus and also needed patience. Here we can see revenue and adjusted operating result trends. And looking this year, you can see that Q1, we had a negative result. And this is the only quarter in this slide from 22 to 25 that is a negative. Going to Q2, we can see here going up and also Q3 going further up. So it's quite a nice trend. However, as said, we are not satisfied with the levels that we have right now. Going to Q4, last year was very weak on profitability-wise, and this is something now we are working to make a clearly better result there. Here we can see the trend in volumes. So volumes declined in a quarter, but less than in Q2, mostly due to profitability focus and with slight impact from lower showroom network. In Q2, So previous quarter, we sold about 3,800 cars less compared to the previous year, same quarter. And in Q2, we sold about 2,800 cars less than in previous year, same quarter. So we have done some positive trend in here, but clearly we work on the volumes going forward. At the end of the third quarter, our cash position was 20 million euros. And as noted earlier, this gives us a good position going forward. We are satisfied with a combination of strong operating cash flows and positive car profitability development. Our integrated services revenue development was hit by lower volumes. We are not satisfied with this trend, even though the share of integrated services has slightly increased in total revenue. Here is a visual representation of how our net working capital developed. We can see 24 million euros reduction in net working capital driven by decline in inventory. I can say that our inventory is in a better fit from both structural and also price points perspective. So in October, as you know, we had to lower our profit guidance for the year. We have been successful in improving our profitability, but this work has had an impact on our volumes. And with a number of cars sold lower than our forecast, the adjusted operating profit in euros is also estimated now to be lower than expected earlier. We have also announced that our dividend distribution in October, we did it and dividend 7 euro cents was paid at the last day of October. And this morning, we have announced a share buyback program based on the annual general meeting mandate board of the directors have decided to acquire at maximum 1 million shares corresponding to approximately 2.5% of the company's total number of shares. The maximum amount to be used for the repurchase of shares is 2.5 million euros. and the program will commence earliest on November 17th this year. And Juha, back to you.