Olvi Oyj Unsp/Adr

Welcome. Welcome to our Q1 interim report. Before we get going, I want to share the usual one pager with some disclaimers. We'll be making some references to the future. And as we can all understand, the future always comes with certain levels of uncertainty. You have your usual hosts, Tiina-Liisa Liukkonen and myself, Patrik, here with you today. The first quarter of the year is always a busy period. It's a period of preparing for summer, but also a period when we compile the results of the previous year and share these with the market. I bring this up because last week we hosted our AGM in Isalmi and there was a particular note that I wanted to make as it pertains to our annual report. And that's the sustainability statement. We have published this now for the first time, and it's of course in compliance with the new directive. I invite you all to visit it and have a read. It's a good read, a comprehensive read, and it's quite an important piece of of documentation. I also wanted to take this opportunity to thank our team really for the great tremendous work that they've done in terms of compiling the report, but beyond that, for the way in which they lead the way in sustainable business growth. And why do I say that we lead the way? Well, we're quite proud to actually have proof of that. We were recognized by Time Magazine as one of the world's best companies when it comes to leading sustainable growth. So with that, I hope that my words of thanks to the team are not only polite, but also factual and that U.S. investors find this as great evidence of the fact that the things that we're doing are actually being recognized and are taking us in the right direction. But then a bit further detail on Q1. So as I mentioned, it's a busy period. It's also a period of preparation for summer. So we're building our stock so that we can service our customers during summer and make sure that we deliver on our promise of bringing moments of enjoyment to our consumers across the markets. And I'm glad to share that during Q1 and also as we speak these days, we're bringing novelties to shelf. We're bringing some 90 new products to the shelves across our markets. That's a combined number. As we look at the numbers of Q1 and compare them with Q1 of 2024, there are a few important things to bear in mind. The first one is the timing of Easter. Easter coincided in Q1 last year as it was in April this year. On the other hand, we've seen some increases in excise duties, particularly in the Baltics. We've had a strike in Finland. All of these have impacted volumes delivered to market and also the consumer demand. Beyond that, we have also invested more than previous years in marketing and G&A to make sure that we're ready to capitalize on the new products launched and really drive our performance across functions. But regardless of the weak demand, we're very proud of our portfolio and the strength of it. There's been intense competition in the market, which has been persistent for some time now, but we're holding our ground. We haven't lost market share, rather the opposite, we've even been able to grow our share in some categories. It's great to see that these initiatives are working in the chosen areas. We have been communicated previously that we want to grow in non-alcoholics and in the Horeca channel. So much in line with our strategy, we see growth coming from these two spaces. And then finally, as we look at the future, I want to mention the High Bay Warehouse, one of the major investments of this year that we're doing in Finland. It's up and running. We have already put in some 8,000 pallets of products in storage ahead of season to make sure that our service levels this summer will be in good stead. So then, as a whole, how did Q1 look like through the numbers? I'd like to say that in general, to the greatest extent, this was more or less in line with our expectations, so no major surprises. We're still seeing that softness in demand that I mentioned and some of the other impacts there in terms of the market dynamics. But we should really remember that we're overlapping a quarter where all our initiatives were not yet in play. We had not done some of our portfolio choices in Denmark and Finland at this time last year. We had also not been able to improve our mix to the extent that we were looking to do, nor had we fully been able to materialize on some of the efficiency driving initiatives in our own operations. So this really impacts the delta between volume evolution, on one hand, and then the profit evolution, and particularly as we look at Denmark and Finland. Denmark impacting, of course, then the Baltic region. But with those words, I wanted to hand over to Tina-Lise who will talk us through the segments in a bit further detail and some of the economics as well. Thank you.

Thank you, Patrik. So let's move to the segment performance for the quarter one, 25. And let's start with Finland. First, I want to emphasize that our profitability improved almost 20%. And this is especially due to improved production efficiency and then the higher average sales price due to the comparison period. We have to remember that last year we were able to make the improvements that offset the high inflation from Q2 onwards. Then our volumes decreased this 5.7%. So as mentioned earlier, there was one big strike in March in Finland, and that affected our delivery capacity and decreased the delivered volumes. But to note that industry delivered volumes decreased even more than all the volumes did. And also there is eastern sales impact, so that this year the eastern is in quarter two. Despite the lower volumes, our strong market shares remained. For example, our beer market share in Finland is more than 50%, despite the changes what we made to the product portfolio in 24. and the sales of waters and harsh seltzers continued to grow. Then in Baltic Sea region in general, in Baltic countries, consumer purchasing power remained in a weak level, and then the price competition continued to intensify. Also increases in excise duties imposed on beverages early in the year also harmed the demand in Estonia and in Latvia. But we maintain market shares in Baltic countries despite of these facts. The biggest decline both in volumes and profits came from Denmark, where we made changes to the portfolio, as you remember, discontinuing some unprofitable products last year. And volume base is now lower. EBIT decreased 40%. And that is because the cost for preparing the summer also affected the profitability. And at the same time, we have invested to the novelties and especially in Denmark, the Jolly soft drink brand. It seems that Danes have an increased interest in domestic brands instead of the American ones. And we have to note that the total euro effect is only 1.1 million in EBIT, which is the decrease. And we believe that that is not the kind of the obstacle to perform well in the future or this year. Then in Belarus, volumes and net sales continued to increase with the overall market growth, and the consumer demand has also been strong. We have to note that Belarus market conditions are different from the other markets, especially for this purchasing power. And then sales volume increased, especially in non-alcoholic product categories like water, energy drink and soft drinks, and growth was achieved in all sales channels. We have all noticed that the geopolitical situation continues to be very volatile. And in the same thing is for us that no changes in all the situation what comes to the exit from the market. There is no permit to sell the shares and the dividend distribution restrictions are still valid under the year end. Then some KPI summaries from the quarter one. First, equity ratio has remained very strong, despite, for example, that we withdraw this 15 million green loan for the new brew house and financing that. And in investment in general, 11 million for the first three months. And from that, 8 million was related to Finland. So there is this high bay warehouse that Patrick was mentioning that we are already taking in use. now for the summer season, and the brew house construction is ongoing. And those projects are progressing in schedule. And then some minor investments, about two million in the Baltic Sea region. Then the cash flow. In this time of year, the cash flow is always negative. So it is when we are preparing for the summer season. And especially this year, we have been stocking quite a lot of products. So that is affecting the negative operating cash flow. Yes, but I think those are the main points from the financials.

Thank you, Tin-Liisa. And then a few more slides, and then we can get to the questions. As it relates to our near-term outlook, we're making no changes, so we're holding our guidance for this year and expect our profit to land somewhere between 82 and 90 million euros. Then really briefly on strategy and choices. Some of you might recall that we called out a few teams during 2024 that we believed would be impacting the year. We see many of these, actually all of them, continuing throughout 2025 as well. We've touched on households and the purchasing power being impacted by increasing prices on one hand, and then the weak demand is also subject to uncertainties and concerns there more broadly. Competition is intense and so forth. You can see them there on the chart. But we believe in our strategy. We believe 2024 demonstrated we're on the right path. Also the first quarter coming in broadly along with our expectations gives us confidence to continue to implement this strategy in a systematic way, both on a group level and then also on a local level. And of course, as always, we're guided by our values and we believe in strong partnership, positivity and collaboration. So with those words and plans, we have every reason to believe that we can deliver in line with expectations throughout the year 2025 and beyond. But this is us in a nutshell summarizing the first quarter. And now we're opening up for any questions in the room or online. Thank you.