Kamux Oyj

Good morning and welcome to Kamuksi's Q425 results information sessions. My name is Katariina Hietaranta. I'm Kamuksi's Head of Investor Relations and I'm here with our CEO Juha Kalliokoski and CFO Enel Sintonen who will present you the results. Please go ahead, Juha.

Good morning. Thank you, Katariina. Let's get started. Here is our agenda for presentation. As usual, we shall first take a brief look at the market, followed by review by country. Enel will then dive deeper into the financial development, including our outlook for 2026. She will also present the post dividend proposal and the extension in our share buyback program that was announced this morning. As usual, we will take the questions at the end. 2025 was a tough year for Kamux, and obviously we are not satisfied with the results. Last year was the first year in Kamux's 22 years of history that the volumes and revenue decreased. The reason behind the 13% revenue decrease is a combination of volumes and average price. While volumes were stable in Sweden and Germany, they declined by 10% in Finland. The rest of the revenue decrease came from the lower average price. Despite the decrease in cross-profit, cross-margin improved to 8.7%. Masses were better in Finland and Sweden. During this market, we have wanted to ensure that the keys are in our own hands, therefore focusing on a strong cash flow. We have seen that many in the industry have had issues with their cash positions. We focused heavily on inventory turnover, and our inventories decreased by 23%, which is 10% more than the revenue decrease. At the moment, we are in a position to start increasing our inventory again towards the spring and summer season. Revenue from the integrated services was 13.3 million euros with Camux Plus at the previous year level. I'm very happy about the customer satisfaction improved throughout the year. Our long-term target is 60, and we beat that in the fourth quarter with NPS at 65. At the year end, NPS was as high as 66. Despite the disappointing volume development, we maintained our position as the market leader in Finland, selling the most used cars both in the fourth quarter and over the whole year. New car markets were subdued in Kamuks operating countries last year, affecting the inflow of trading cars. We can already see that the car park of one to five years old cars is decreasing in all our operating countries, which means even tougher purchasing market. This may lead to higher prices of used cars also. There were no major changes to our showroom network during 2025. In Finland, our showrooms in Jyväskylä moved to new, purpose-built premises during the last quarter. Earlier in the year, we closed the showrooms in Mantsela and Savonlinna. There were no changes in the network in Sweden, where we had closed altogether six showrooms in 2024. In Germany, we opened a new showroom in Sverin, near Lübeck and Rostock in the northeastern part of Germany. To improve our efficiency in the capital region in Finland, we have decided to close two showrooms. The Malmi showroom closes by end of February, and Herptonimi by end of March. The cars and most of the sellers will move to other showrooms in the capital area. The Seinäjoki showroom will relocate by end of March to better premises. Moving to comments per country. In Finland, the competition continues tight. consumers continued to prefer affordable cars, which were not so easy to source, as many dealers were after them. The volume development was disappointing, but the good news is that despite the decline, we maintained our position as the market leader in terms of number of cars sold. Revenue was impacted by volumes and lower average prices. Volumes were down by 10%, and the rest was due to lower average price. Gross margin developed positively for the third quarter in a row, although margin per car was slightly down. Adjusting operating profit decreased mainly due to volumes. Insurance penetration increased to 66%. The decrease in Kamux Plus penetration rate is largely explained by the lower average prices of cars sold. Our showroom in Jyväskylä moved to new premises during the quarter. This is one of the few premises that we own ourselves. Customer satisfaction improved further and was 65 for Q4. On a full year basis, NPS was 62. And then we will move to Sweden. In Sweden, we have made good progress into the right direction during 2025, but obviously there is still a lot of work to do. The market did not help us in Q4, and our volumes stayed at the previous year level. Revenue decreased as the average price of cars was lower than in the previous year, and fewer cars were exported to Finland. It's also good to keep in mind, when thinking about the full year volumes, that in the first half of 24, we had six showrooms more than in 2025. Three showrooms were closed at the end of July 24, and another three by end of December 24. We took active inventory management measures during the quarter, which impacted the margin per car. Despite this, gross margin continued to improve, but gross profit decreased due to lower average price. Cummins Plus penetration rates have increased quite nicely, and the finance and insurance penetration rates have remained on a good level. Customer satisfaction has developed well also in Sweden, and there is significant improvement in NPS. It was 56 in Q4-24, and now in Q4-25 it was already 64. I'm also happy to say we announced the appointment of Niklas Eriksson as the new MD of Kamux Sweden yesterday evening. He will begin in the MD role in mid-April, but joins the company a little bit earlier. In Germany, our challenges continued. In Q4, we did a lot of inventory cleaning by lowering prices, and selling cars also to the other dealers. As a result, the number of sold cars grew compared to Q4-24. This was at the cost of the margin, leading to a weaker gross profit and gross margin, and also with an impact on financing services. Assisted EBIT was also affected. The good news regarding Germany is that also in there, our customer satisfaction has improved. NPS for the quarter was as high as 70 and even the full year 62. And now I hand over to Enel for more details on the figures.

Thank you, Juha. Summarizing our financial performance in the quarter, Sold volumes and revenue declined, and despite slowing decline in Q4, current volumes do not meet our ambition, and we continue to work to turn it. Gross margin improved for the third consecutive quarter. Looking at financial performance per country, Finland and Sweden are moving step by step to the right direction, In Germany, we continue to face challenges, noted also by Juha earlier, and we work intensively and with discipline to turn it to the right direction. In response to headwinds in sold volumes, we have prioritized the right size and health of inventory. Inventory has adjusted to 100 million euros level, unlocking a significant amount of cash. Inventory turnover has improved, right steps towards capital efficiency have been done and will continue. Balanced ratios are at healthy level, net debt is at historically low level and equity ratio is 53.5%. And as a summary, at the time we continue to have headwinds in volumes, we ensured right size and health of inventory, healthy financial and liquidity position. And here are our financial ratios. Revenue declined by 13 percentage points and key drivers were underlined earlier. Gross margin was 8.7% and improved slightly. Driven by lower volumes, operating result was negative. Items affecting comparability included termination of CEO contract costs. Adjusting operating result was negative. Inventory turnover that we talk a lot in our business has improved and we continue activities to gain further improvements in this area. Equity ratio has improved and is at over 50% level as said earlier as well. After this year, volume is our key area to improve. we are looking at our financial position, we are better equipped to go for volumes, our inventory is at the right size and fit. Here we can see trend in volumes. Volumes declined in a quarter, but less than in recent quarters, mostly due to profitability focus and with impact from lower showroom network. In Q2, we sold about 3,800 cars less compared to the previous year same time. In Q3, about 2,800 cars less. And in Q4, we sold about 1,000 cars less than in previous year same quarter. So the decline has somewhat slowed down. We can see revenue and adjusted operating results trend here. Looking recent four quarters, adjusted operating profit trend was to the right direction in Q2 and Q3. However, low volumes impacted heavily to Q4 results. At the end of the fourth quarter, our cash position was 18.5 million euros. In Q4, we paid back 12 million of revolving credit facilities that can be withdrawn later when needed. Cash position and unused credit facilities gives us a good position to build up inventory and volumes. 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 to total revenue. And here is a visual representation on how our networking capital developed. We can see 30.8 million euros reduction in networking capital driven by decline in inventory. our inventory is in a better fit from both structural and price points perspective. Outlook for 2026, Kamux expects its adjusted operating profit for 2026 to increase from the previous year. And dividend distribution, Based on the dividend policy, Kamux aims for a dividend payout of at least 25% of the profit for the financial year. This year, the result has been negative. However, the board of directors proposes dividend of 5 euro cents per share to be distributed for the year 2025. In this morning, we have announced also an extension to our share buyback program. The program that was initially launched in November has progressed well, and board of directors decided to increase the number of shares to be bought. The new totals are acquire at maximum 2 million shares, and this means extension of 1 million shares compared to initial launch. The maximum amount to be used for the repurchase of shares is 4.5 million euros. The program will end April 16th at the latest. And back to you, Juha.