Kamux Oyj

Good morning everyone and welcome to Kamuks' Q1 results information session. My name is Katariina Hietaranta and I'm Head of Investor Relations at Kamuks. We have today our CEO Juha Kalliokoski and CFO Enel Simtonen presenting our Q1 results and after the presentation we shall hold a Q&A session. We shall first take the questions from the teleconference line followed by questions from the audience here as well as via the webcast chat. Thank you. Please go ahead, Juha.

Thank you, Katarina. Good morning. Let's get started. Let's take a quick look at our agenda today. As usual, we will begin with an overview of the quarter, then take a look at the market development, looking at each operating country separately. Then Enel will present our financial development in more detail. And as usual, we will finish with Q&A session. As it was last year, our focus during Q1 was on profitability. We succeeded quite well and cross-profit improved significantly. Despite negative volume development, Following this, the adjusted operating profit improved, but was still negative. Gas flow for the quarter was lower than last year. This is directly related to the very different starting position with our stock. We started the year by the low stock as planned, and towards the end of the quarter, we increased our inventory. Revenue from integrated services was 12.7 million euros, which is 6.2% of total revenue. Our customer satisfaction is at an excellent level and we further improved it during Q1. The group NPS for Q1 was 66 and Finland achieved an NPS score of 70 in March. And when we look about under the big picture, we see many positive things behind that. When you look about the gross margin percentage and gross profit per sold unit, Sweden started to increase sold units and revenue. Our equity ratio is 53. And as you see, we started to increase our inventory at the end of quarter. Consumer confidence was at a low level in all our operating countries. The Iran crisis and the following increase in fuel prices further affected consumers and their willingness to spend money on big purchases as such as cars. We also saw very rapid changes in demand for different powertrains and the demand for EVs spiked after the fuel price increased. The used car market contracted during Q1 in all our operating countries. Sweden was down by 5.5% and Germany by 1.7%. In Finland, the total market was down by 1.2%, but the number of cars sold by dealers grew by 1.1%. Disappointingly, as the number of cars sold in Finland decreased, we lost our number one position. In Sweden, despite the difficult market, our volumes grew and we gained some share. In Germany, where the market also contracted, our share remained small. In terms of new car registrations, the number of new cars registered across Europe grew by 4% during the first quarter. In Kamuks operating countries, registrations grew in Germany and in Finland, but declined in Sweden. To improve our efficiency in the capital region in Finland, we closed two showrooms during Q1. These were the showrooms in Malmi and Herptoniemi, as we announced earlier. The showroom in Seinäjoki, also Finland, relocated to better premises at the end of March. In Sweden and Germany, there were no changes to our showrooms and network during Q1 26. Now, a look at each country in turn. In Finland, the number of cars sold declined by 9.3%. As planned, the average price was lower than last year, and this impacted our revenue. We are satisfied with the cross-profit development, but we are not yet at the level where we want to be. Despite a 16% decrease in revenue, adjusted EBIT improved by 24.5%. Integrated services penetration levels were roughly at the previous year level. I'm particularly pleased with the high level of customer satisfaction in Finland. In Sweden, we sold 16% more cars than last year, first quarter. Cross-profit improved significantly but it's still too low. At this level, the number of sold cars was not enough to get Sweden profitable for the quarter. In all integrated services, the penetration rates developed into the right direction. Please note that the calculation method of insurance penetration has been changed. And now we count in only one-year agreements. Niklas Eriksson began with us at the end of March and as the managing director on April 13th. Niklas has a broad experience in the car industry. In Germany, we still have a lot to do, particularly with volumes. The average price decrease was planned, but this naturally affected our revenue. In Q1, first profit decreased compared to Q1, 25. But compared to Q4 of 25, gross margin developed into the right direction. Our focus at the moment is particularly on inventory turnover. And now I hand over to Enel to more details on the figures.

Thank you, Juha. And summarizing our financial performance in the quarter. Sold volumes and revenue declined, and B-drivers were underscored by Juha earlier. We can see that cross-profit in total, cross-profit per sold car, as well as cross-profit margin improved. And cross-margin improved for the fourth consecutive quarter. Inventory turnover, right size and right mix, continues to be at tight control throughout the quarter. And looking at financial performance per country, Finland and Sweden are moving to the right direction. And in Germany, we continue to face challenges noted also by Juha earlier. We work with discipline to turn it. Seasonal inventory build-up started towards the end of the quarter. We started the year with inventory level at 100 million euros and closed at 110 million euros. Operative cash flows, minus 7 million euros, was at most part related to inventory build-up. Our cash balance at the end of the quarter, 5.8 million euros, reflected that we have not utilized our short-term credit facilities, which are available in totals of 25 million euros. Balance sheet ratios improved and are at solid levels. Net debt declined to previous year. Equity ratio has increased to 53.5 percentage level. And basic earnings per share improved. And summary of our key financial ratios is presented here. As said, revenue declined, profitability and financial position measures improved. Earnings per share was slightly negative, however, improved well compared to previous year. And as a summary, at the time we continued to have headwinds in volumes, we focused on profitable deals, ensured right size and health of inventory, and solid financial position. Here we can see the trend in volumes. Volumes declined in a quarter, but less than in recent quarters. Our volumes few years back remind us of the capabilities we have and the ambition to go back to growth continues to drive us. Our integrated services revenue development was hit by lower volumes, And we are not satisfied with this trend, even though the share of integrated services has slightly increased to total revenue. We can see revenue and adjusted operating result trends here. And we are firmly focused on regaining volumes and improving profitability. And that said, seasonal build-up of inventory was the key driver of our operating cash flows in Q1. We are satisfied that we both started and also closed the quarter with right size inventory. Our outlook remains unchanged. Camus expects its adjusted operating profit to increase from the previous year. And in April, the AGM decided that a dividend of 5 euro cents per share will be distributed for the year 2025 and will be paid at the end of October.