Good morning, and welcome to Duell full year 2023, financial report webcast. We have today the CEO, Jarkko Ämmälä, and CFO, Riitta Niemelä, presenting the financial report. During the webcast, you have opportunity to ask questions via chat room, and we will have at the end the Q&A session. My name is Pellervo Hämäläinen from Investor Relations. Jarkko, stage is yours. Thanks, Pellervo, and welcome from my side also. Like Pellervo say, we going through the what's happened in the full year, 'cause our fiscal year is 1st September to end of August. So, let's go to looking for the pages. First of all, little bit background on the company. Most of you know that we are founded in Finland and Nordics, been like many years already. We actually 40 years anniversary in this season. We are market leader on the Nordics, and now we then entry on the European powersport market also. So we operation 16 countries at the moment, so we have a quite big operation in France and also U.K. now, and Benelux also. But then we cover also the most of the central South Europe. Last year's total net sales, we end up in EUR 120 million. Later on, we will go through the numbers more detailed, but just the highlights, a few key, key figures. 150,000 SKU on the portfolios, around 550 brands, 600 suppliers, 8,500 active dealers at the moment, and that's growing now year by year. Mostly, mainly on the Europe side, of course. More or less 200 employees at the moment on the group level. We are unique company whose operation all the different categories. Mainly, of course, Powersport, like we call it Powersport, but now we have also the bicycle category. Yeah, everybody knows there is e-bikes and kind of powersport category, but it's good, good fitting on our portfolios, also, the bicycle categories. All different categories, ATV to on-road, off-road, watersport, and of course, Nordics, in the snowmobile is pretty important. After that, all categories, but then we also cover all different products or the accessories. So roughly two, 2/3 parties, they're coming from technical and spare parts side, and one third coming from personal equipment, safety side, from helmets to boots, and cover all those different categories. We cover basically all sales channels. We have a big retailer who's not a specific motorsport retailer, but they have some portfolios. Specialty shops, what is the, of course, heart of the business and who's really focused on the motorcycles or snowmobile or ATVs. Retail workshops, spare parts shops. Also, the production side, we have something in the Nordics also, like, marine side, there is some production, so we are supplier some parts there. We cover in e-commerce side pretty strongly. There is local e-commerce companies, but there's also international e-commerce partners for us, and that's roughly 25% of the total net sales going through this e-commerce customers. Let's go to look for the Q4 first. How is it looks? Only Q4. Like all knows, the markets continue pretty difficulty. Don't really know where, where we- where is it going. Is it flat or is it increasing or more negative on the big, big level, top level on the economies? Big, a lot of question marks, and that's, of course, a direct impact on the, not only on the end users, demand, but it's also the actions, what the dealer networks, how they see the situation and what kind of actions they do it and how they see the, to future, how they continue. All in all, net sales, we dropping 14% on the Q4, and it's more or less line on the how we see the total market, market development. Of course, we have a FX issue that, if we have quite big sales on the- on the, especially in Sweden, but also Norway. And so if you're looking for the currencies, fixed the currencies the same like Euro is - 9.5%. But and organic sales dropping, so that's where it's coming, more or less. Positive side in Q4, that we still keep the gross margin. We actually even increased the gross margin in 0.5%. At the same time, you'll see that later on when we're looking for the more numbers detail, that we're dropping pretty heavily on the inventory, but still keep the gross margin. And but then because the top line, the turnover is not there, what, what is, what is then should be or the historically, then we lose of the EBITDA margin, pretty heavily. But the positive side, again, on the, on the cost side, fixed cost manage-- we manage fixed cost pretty good level because it's co- if you compare year ago quarter, we did it, at TranAm, company from U.K., take it now in and, and of course, we take it also the TranAm cost side. So, so basically, we, we manage on the cost side. Everybody knows inflation and, and, and et cetera, and et cetera. So but we co- we manage of the cost side quite well, and we see also the future 2024 more, more impact of the saving, what we've done on the already done inside of the 2023, and we did it on the latest ones inside of the Q4. On the operational side, the positive side, if you're looking for more on the positive side, we have a very strong cash flow. Not only this quarter, but also the full year. So later on, we touch on the more detail, but only this quarter, operating free cash flow was on the positive side, EUR 10 million. And where is it coming? Of course, it's coming mainly, we optimized the net working capital. That means, inventory level, we're dropping really nice. We have a program around that in the last two quarters we started, and that was the one main topic for us in all this 2023, the lower inventory level of net working capital. And then we can start to improving our gross margin also in the future when we coming on the better level on the especially on the inventory levels. Okay, here I pass the words to Riitta, that she's continue to looking for the more number side. Thank you, Jarkko. Also, welcome to this webcast on my behalf. The major key drivers affecting Duell in financial year 2023, Duell operated in very challenging market conditions, where Duell revenue was impacted by both decrease on consumer demand and continued destocking by retailers. In Nordics, where Duell is the market leader, the revenue was decreased most. Duell sales followed directly the decrease in market trend, and therefore, Duell estimates that the company has maintained its market position and market share. Even though the market environment was difficult, Duell executed its net working capital management efficiently and generated EUR 16.4 million of operating free cash flow. Financial year 2023 was heavily impacted by currency rate fluctuation as well, which had negative impact on net sales, approximately EUR 4 million, and weakened the profitability accordingly. The figures of acquisition of TranAm Ltd, that was done in March 2023, are included in group consolidated figures from March onwards. The acquisition was strategically significant, and the company has performed excellently. Let's have a closer look on financial figures of the entire financial year. Duell revenue amounted to EUR 119 million in financial year 2023. Net sales growth was -4.2%, whereas the net sales growth with comparable currencies was -1%. The sales decrease derived from decreased in biggest markets where Duell is operating. In quarter four, the decrease of growth was 24% in Nordics, where Duell faced unexpected sudden decrease on demand. Meanwhile, the other Europe decreased as well when compared to pro forma figures, as they are including TranAm. This was mainly due to the biggest online dealers who reduced their purchases significantly in this challenging market situation. However, at the same time, Duell was able to increase its market share in some European countries. Duell gross margin was in the same level as in previous year, and slightly better in quarter four when compared to previous year quarter four. Duell has profitability improvement project ongoing, and related to this, Duell has targeted increase on gross margin when going onwards. Regarding the adjusted EBITDA, it was EUR 4.6 million, having a decrease of 47.4% compared to previous year. This decrease was purely driven by decrease on revenue. Duell enhanced the cost saving program and have adjusted operating costs to lower than expected demand. Reported figures also show that there is a difference between adjusted and reported figures, and they are explained by items affecting comparability. These are EUR 1.2 million and relate to restructuring costs, directed share issue fees, and costs from destocking decision of certain brands. Capital expenditure was increased when you compare it to the previous year. This is mainly due to investment made to new e-commerce platform, which will be implemented during financial year 2024. Duell's net working capital was EUR 49.8 million, with a decrease of EUR 8 million when compared to previous year. The actual decrease is EUR 40 million when the impact of TranAm's net working capital is considered. So Duell managed its net working capital efficiently during the financial year. Duell's net debt was EUR 38 million at the end of August, and the decrease of EUR 6 million compared to previous year. There was remarkable decrease, even though the net debt now includes the deferred payment of TranAm acquisition, which is approximately EUR 5.5 million. The management of net working capital had direct impact on the net debt. As stated many times, Duell's operating environment has recently changed, and due to this, Duell's profitability has decreased, and following the net debt to adjusted EBITDA ratio has increased. Duell is now considering a rights issue to strengthen its balance sheet and to ensure further execution of its strategy. Duell has not made any decisions regarding the completion of the offering, but according to the preliminary plans, the size of the potential offering would be up to EUR 20 million. Jarkko, you can continue. Thanks. Thanks, Riitta. Yeah, let's look at how we see the market and main task on the 2024 season, what is already one month done. So because our fiscal year is different than calendar year. We still believe it is similar market right like it is right now and been in 2023 of the end users' demand. We see that this, it's continue similar or kind negative. We don't expect this, the short terms in big change of the how we see it. And that is the mainly impact of that on the overall, like, high-level economic situation. Especially on the Nordics, we have a issue there. So we believe it, that the market, total market is more or less similar than it is right now. So yeah, inflation is still high. Overall economics, everybody knows, and that's makes the weak consumer is still weak confident because we not really 100% sure where this going. Is it when the rates, mortgage rates coming down, or are they gonna coming down on the 2024 or not? So we believe it, those outside effects impact still on the 2024. What. Where we need to focus and where we want to focus on the 2024, most important for us is now to getting back of the profitability improvement program, what is already started in couple of months ago, and we start to see it on the result on the already on the coming months. So this is our most important what we priority on the 2024. So, we. That's including that we still optimizing net working capital, where we was in the pretty success on the 2023. So that's, that's the, that's in the part of that profitability program, of course. Net working capital, what we want to coming down inventory levels, also the payment terms with the suppliers and also the pricing and gross margin, mainly on the, on the, we can use of the buying power on the, on the suppliers. So profitability improvement is the most important things in 2024. Let's go to next page. Few more detail than this, because this is the most important things in 2024, our task. So we started this program already in May 2023, and it's continue now through 2024. We targeting in this program that the program brings already inside of 2024, our fiscal, we targeting between EUR 3 million and EUR 4 million. But of course, the full impact is coming 2025 season, because we are already in the middle of the not early in the season. So it's not all actions and all what we've done is not in place yet. Where we focus, the main focus areas on this profitability program is, of course, the pricing. It's the purchase pricing on the suppliers, discounting and procurement around that. But at the same time, optimize the portfolios. We are cutting off the overlaps, and it's also the impact on the net working capital then, but also the sales mix and profitability, different product lines or different brands are different. So we optimize those portfolios. We have done very strong, heavy data analytics. Of course, our own teams interview. We have a clear process mapping roadmap, how we going and when we're doing and, and what we decide to do it. So everything is running. There's. And that's gonna bring it on the clearly result on the 2024. But then, but of course, in the even bigger on the 2025. But there's clear action plans, what we do it, when, targets, who's own the projects, and et cetera. This is our main projects in 2024, most important things, and that brings the strong result when this, when what we're gonna see it on the middle and the end of the 2024. How is it looks then our outlook then? Short terms outlook on 2024. Because of those uncertainty and weakness still continue on the 2024, inflation, overall challenged market, that's, we see that it's continue, and there's no really clear confidence and where is the demand going? So that's why we don't, we're not giving outlook on the turnover net sales at all on the 2024, because this is not the. It's also the- It's not our main driver in the 2024. Profitability project is the main priority on the 2024, so that's why we not give it on the net sales guidance, 2024. Because of this profitability improvement program and plans, everything we've done, also we have a plan to strengthen our capital structure, and all in all, those together, we are confident that we estimate that EBITDA improving on 2024. This is our short-term outlook. Here is the medium term. There's slightly change. All in all, we looking for the turnover between EUR 200 million-EUR 300 million in the medium term. Previous, it was end of 2025. That's basically the change and the only change, what is what we change of the medium-term target. We still see the market going, which direction the total market going that. We still have a strong market shares, and we're growing on the market shares in the, especially on the Europe, many market areas. It is in the short term impact that the market is very negative, and that's why it's postponed this, this little bit, this medium terms target, what we're looking for. Of course, profitability, it's the same things. It's mainly in link di- First, it's quickly direct link on the net sales, but also the projects, what we're gonna do it in there. We are still confident in the medium, medium terms timeline that we catch the, our, our, our target. The leverage, wh- where we want to operation, and here we looking for the also the other options like you al- already getting some, some information around that. All in all, the strategy line, cornerstones, our strategy is nothing changed. We really want, and we've been best partner on the dealers and brand owners through the Europe. Of course, we are in the Nordics, but we still want to, Nordics, strengthen our leading position. That's the key strategy. And then the cornerstones, how we do it, those things. Of course, we still market expansion. It's not mean only entry new mar- total new countries, but many countries where we are entering now, last two years, we are st- very limited portfolio. It's also the expansion on the portfolios, those market where we entry. And online sales, we, we, we doing a lot of work behind the, that we can support on the online sales strongly in the future. Still believe it, the online sales is it's a big part of the total business, so we need keep it on the online sales, but it's through our partners. So that's the one cornerstones. And end of the day, of course, brand portfolio is one of the most important things. What brands you have in portfolio, how wide, but not too wide, and own brands inside of those brand portfolio is of course, extremely important. Then it's our hands, but it's also the margin-wise, normally, it's better some portfolios. So that's nothing changed in this. So the market, what the market changed now last two years, it's not changed our longer strategy because we still see the same things. It's works. Okay. Yeah. Now, Peltsi, we can go to questions if there are some questions. Yes. Very good. So let's have a few questions about the market development. So as we didn't give any guidance for the, for the top line, so what, what could happen in the market if, if we couldn't grow, including the impact of the TranAm acquisition? So do we see that the, the dealers will still destock their inventories further? Yeah, I would say they want it, and this is important, too. It's difficult to really measure in the. Because, like, for us, it's 8,500 dealers. But what is the market trend, if I call it, use it this word, is the total pipeline that everybody wants to drop off the inventory. So they even- they are in the lower level now than a year ago. They still want to get it lower, if it's possible. And that's, but that's not the biggest driver in the 2024 anymore. 2023, that was the big, big driver. The 2024, it's, it's like main things why we not guidance of the turnover is, is still so many questions mark on the, on the end users' demand, that if it's continue, like right now, last six months, or is it going much worse or is it going better? To be honest, it's, it's impossible to, to really see what, what is the end users' demand on the April, May next years. We, we, we, we have a better understanding now on the, on the, on the sales channel, on the, on the inventory levels and, and what, what the actions over there, but the end users is still, so many questions mark. That's why we didn't, we didn't, guidance of the turnover on the 2024. Good. Then, about if we looking forward, let's say, to the next season, the winter season. So, how could you describe it, how it's been going? Yeah. There is in the some part of the pre-sales always in the. And that's done on the, on the couple of months ago, and now we start shipping out of the from here to December, more or less. Of course, that's the Nordics market, and we, we, we are pretty happy or confident what's, what's happened on the Finnish market. Finnish market, we have a, a good order book and, and also the, also the other sleds or, or the, the machines, snowmobiles and pre-sales was very strong. Of course, there is always weather risk on the sea- on the winter items, but that's we don't know yet what's, what, what's happened. But we see also the same time, more difficult or more difficult on the Sweden and Norway market. Also, the snowmobile sled sales, pre-sales, but also our pre-sales. So all in all, we see pretty positive because inventory levels, they dropping last winter in the quite low level on the snowmobiles. So we see pretty. We are pretty confident in Finland, but we estimate more challenges in Sweden and Norway continue in this coming winter. Very good. Then about the profitability program. So, do we see that the program could, let's say, cut the top line, the net sales with the access if we are cutting, let's say, number of products and so on? How do you see it in 2024? Yeah. In the short term, it can cut it something, and this is also the kind of bridge that we don't guidance the turnover. It's not only that, but that can be minor negative impact if we cut off the portfolio, where is it, what is not the profitability for us, or we have too many overlapping in the short term. Longer run, we are confident that the sales can move it on the other products or other brands, because we have a lot of different brands on the same category products. But not a big impact, because also the short terms, even we cut it, most of those products we have in stock still, so we still selling it, but we not reorder anymore on the future. We have a time to make those transaction to, to, to products where what we continue. Yeah. Then, as we described, the kind of benefits from that program would be around EUR 3 million-EUR 4 million in 2024. So how would you kind of describe that for 2025 and going forward? Yeah, it brings more on the 2025. That's that year. This is kind of. It's not like one shot, development. It's also the way of working and how to do it, and also the partnerships, which partner we continue with the supplier side, and there's a lot of detail at to what is to happen. We don't want to give it yet on the exactly the numbers, how much is this impact on the-- should be on the 2025. The-- that's, we are confident this 2024 fiscal, what is bring it. Okay. Then about the, let's say, how do you see the, let's say, the additional acquisition synergies next year? Are there more costs or sales synergies that we could achieve? There is both. There is. We already done some cost saving the synergies on the market where we did it M&A on the before. But also the U.K., it's not so much cost saving. We have a small operation there before, sorry, before. But we have a slightly cost saving also, but mainly is the sales synergies. That's the kind of everywhere. We already see the positive result or some brands coming our portfolio, or we bring it into our own brands on the portfolio. So mainly it's coming from the synergy on the sales side than saving. Okay, let's move to Q4. What really happened in Q4? Are we more kind of, let's say, disappointed to Nordics or the European markets? What was the real change what happened compared to our earlier estimation? Yeah. What happened, there is a few-- There is a little bit of timing, timing questions. When you invoice in the pre-sales products, also historically, sometimes we put it on August a little bit, and then now maybe September. What is the main, main impact and what we not estimate and we didn't see in June, because we were in a good June, was the dealers are more aggressive, dropping on the inventory end of the season. That's what we talk about, the summer season. Basically, August, they put the handbrake on, and they want to drop the inventory as much as possible. They start to act a little similar to how we do it already historically, that we got-- we don't buy any. Basically, it's not black or white, but we don't buy anything in August anymore. That's quite, quite heavy hitting, and that's not historically. That's the first time on the wide sales channel dealers are acting like that. It's not only one biggest dealer or here and there. It's basically all dealers. Especially, it's also in all Europe, but especially in the Nordics, because Nordics, the dealers, when the market is smaller, they kind of need to work higher base inventory level, so they have more room to drop on the inventory. That's the reason. Okay. When we have decreased the inventory levels, so did that have an effect on the profitability or gross margin in Q4? Yeah. Like you see, we're improving on the 0.5% on the Q4. But of course, in the, let's say, better situation, if our inventory was already lower, what is not, it's even more positive impact of the gross margin. So because at the same time, have to. You see that we're dropping heavily on the inventory, but still we keep it quite okay gross margin. So there is always impact of the after season, the last month's sales, the kind of closeout sales impact of the inventory, but that was a little bit less now because the dealers don't really want to buy those closeout at any price. So that's why is better. But the positive things is we are now so much better situation with the inventory that we don't need to have to close out so much like before. And this is also the one kind of direct link of the profitability program, that we believe it. It is also the when inventory is lower, you don't need to lose your gross margin so much. Okay. So do we have some targets for the net working capital levels for 2024? We decreased quite significantly in 2023, but have. How we can, let's say, describe this target? Yeah, we have internal targets, very, very detailed and very, very clear. But we don't publish that any detailed numbers. But like we say, we are very confident that it's coming down. If I'm put a little bit like ballpark where we are, it's not the plan to coming down as much like 2023, but it's still- we still are planning to bring it down. Very good. Then back to competition. So have, let's say, our competitors been aggressive with the pricing? Let's say if you compare, like, Nordics and the European markets. Yeah. Yeah, they are some. Some was already early on the summer very aggressive because they, of course, the all market are more or less the similar situation in the, let's say, negative issue. Inventory too high, and then more products coming from suppliers. So you need to clear. And if the pipeline is full, then you go to try to push the lower price. And so of course, that's always. It's always there, and it's been pretty aggressive on the beginning of the season, but we don't see it so much now in the last two, three months. But it's more. I would say that is more on the dealer level now than the wholesaler. The dealer level is pretty aggressive discounting and want to even drop the inventory lower than. Like I said, they want to lower the inventory, even it's now much lower than a year ago. They still want to continue, but not big issue right now with the competition, our competitor. But of course, like all, there is always and there can be tomorrow, whatever the competitors gonna do it. So competitors' impact is always there, so. Okay. There was one question about the rights issue. So, are we aiming at the full EUR 20 million? So of course, at this stage, it's just preliminary kind of plan, and no decisions have been made, so at this stage, we can't comment any more on this topic. Then we had one question about the covenants. What have been the covenant terms for the loans? So I don't know if you can comment on that, but please. Yeah, if I just comment or, or Riitta can comment, but like, we still have a good, good relationship with our, our, our partners and, in the financial side. Of course, when the EBITDA coming down, it's, it's hitting quickly and, and it's also the matter, matter on the calculation, also the all pro forma and, et cetera. There's a lot of detail at how, how to, how they can calculate what is the agreement. We and, and also we have a historical, it is, we call it swing on the different, different covenants on the different quarters. It's, the, the. I would say just to maybe comment that it's positive way we continue this plan to change the covenants and put it on the total package together or like. But it's, of course, when the market changed quickly and a lot of happen on the one quarter, it also takes time to. It's not like just to put on the some weeks and the everything's on the place. But I would say the discussion on the going positive way, but it takes some time. And we wanted to finalize and close it, the new agreement, before end of August, but we just can't done that in the few reason on the that timeline. So we continue now and we come then to the situation that hopefully fits both sides well. Very good. We have gone through the Q&A session and the presentations, and would like to thank all the participants, and we will come back then later, where we have the Q1 result coming out in January. Before that, we have the annual general meeting in early December. Thank you all, and see you again. Thank you.