Suominen Oyj

Good day, everybody. My name is Julia Koivula-Nahoa. I'm the interim head of communications at Suominen. Next, Suominen's president and CEO, Tommi Björman, and CFO, Janne Silonsaari, will present the result. And after that, there will be time for questions. Tommi, Janne, the floor is yours.

Thank you. Thank you, Julia. Okay, welcome also on my behalf to this third quarter quarterly review. So first, we will start with the brief introduction of the third quarter in main points. After that, Janne will take over and look at the financial reviews. Then I will look a little bit in deep, a little bit the strategy implementation, as well as we will comment the outlook for 2024. So the third quarter in brief, there was a positive progress we were able to improve our sales volume, sales prices and sales margins, which were mainly driven by the good initiatives done in the commercial excellence side. Also, we had some improvements in our operational excellence, which led to the situation that we had a little bit higher asset utilization. Unfortunately, we faced a couple unexpected operational issues. which had roughly €3 million negative impact in our third quarter EBITDA, which totaled in the quarter €3.3 million, which is at a level which is not satisfactory for us. But of course, we continue work in order to improve it. Naturally, this had also an impact on our cash flow from the operations, which was slightly negative of €2.2 million. 2.6 million euro. In the year-to-date numbers, there is a clear reflection to the third quarter in it. We had a slightly better top line and we were a little bit ahead of last year with 2.3 million euro. And of course, the cash flow from the operations remained due to the fact what happened in the third quarter on the slightly negative level of 2.6 million. So Janne, maybe you would walk through the financial numbers.

All right, good morning from my behalf as well and we'll start with the net sales and we had some positive impact on the top line. We have seen sales volumes, sales prices as well as sales margin increased from the comparison period from last year in Q3. The currencies impacted negatively, 1.4 million in Q3, and share of new products exceeded 30% in Q3, which is still on a high level, but down from the year-to-date average, which is 35%. Drop in Q3 is mainly related to the issues in operations that Tommi just mentioned. On EBITDA, comparable EBITDA in Q3 was 3.3 million and 12.8 million euro after three quarters. So Q3 EBITDA was naturally lower than expected and as said, not on a satisfactory level. As mentioned by Tommi, we had approximately worth of 3 million euros negative impact from couple of major issues in operations in our production plants that impacted through both lost margin due to the downtime and additional costs involved. This is naturally very unfortunate and we have taken immediate corrective actions to address the issues. On year-to-date level, we are ahead of last year, roughly €2.3 million, despite of lower Q3, main contribution coming from higher volumes and sales margins. Currencies have impacted negatively on Q3 and year-to-date, as you can see on the slide. so brief look on the consolidated statement of profit or loss so no major in items on q3 we had a roughly hundred thousand euro positive impact from provision reversal set for the mozart the plant closer and on year-to-date level net impact is roughly 1 million negative. This is mostly related to the restructuring process we had and those restructuring costs have been partly offset by the Mozart plant closure provision reversal. All right. And then the gas flow from the operations in Q3, the lower EBITDA naturally impacted the gas flow from operations, which totaled 2.6 million euro negative, which is the same amount on your today level. and last year we achieved good level of working capital on on on total full year level main impact this year on on this area is coming from the slightly increased inventory levels especially on raw material side where we have minimized our supply risk by increasing buffer stocks due to the global geopolitical uncertainty and reflection on the on the logistics side We will follow this closely and adjust if and when needed and possible.