Good afternoon, ladies and gentlemen, and welcome to Fiskars Capital Markets Day 2021. My name is Kristian Tammela, Director in Investor Relations. We're really excited to be here today to tell you more about the company's future and our plans for that, as there also has been a lot of changes to the company recently. Only yesterday, we published our new long-term financial targets as well as a brief outline of our updated strategy. Those will a`lso be the key themes for today. Our CEO, Nathalie Ahlström, and our CFO, Jussi Siitonen, will go through these presentations in more detail, to give you an understanding of those. Before we go into the presentations, we'd like to highlight the disclaimer here as we'll make forward-looking statements. After the presentations, we'll have time for a Q&A session. We'll take questions here from the live audience, but you can also ask questions through the Q&A options in the chat online. With that, let's get started, and I'll hand over to Nathalie. Thank you, Kristian, and welcome also from my side. It's really exciting to be here today and talk about our growth agenda, our growth strategy. I'll talk through that now in detail, and then Jussi will follow- up talking about value creation model, our updated financial targets. From my side also, welcome here in Helsinki, all of you also online. Welcome to this next chapter of Fiskars going for the growth path. Starting where we are as Fiskars today, I'll talk now in my part about the foundation we are having, the strong foundation we are having, then going over to the growth strategy, talking about the strategic choices we've made, strategic choices to make sure we are winning and growing in the long- term. It's about focus. Also I will talk about our transformation levers that we have in place. All taking this together, then Jussi will follow- up and talk again about the value creation levers and the financial targets that wrap up the whole growth strategy. That's the key agenda for today. Let me start with where we stand as a company with a strong foundation. As you know, we have a strong foundation and I would like to just highlight a few examples of what we are building on. If we think about Fiskars today, already 40% of our net sales is in the U.S. That's quite a lot. We are the number one gardening brand in the U.S. When looking at a total different market in China, our Chinese team has, over the last three years, 4x grown the e-business we have in China. That's impressive. It is Wedgwood that is the number one brand in its category in China. You see these are examples of really showing the power of Fiskars and the strongholds we are having. Looking into modern trade, already today in business area Vita, 1/3 Of the net sales comes from Direct-to-Consumer. We have a good start in Direct-to-Consumer. A bit of a fun fact. We celebrated in August Moomin Day, came out with a unique collectible Moomin mug that was sold out in 20 minutes. 20 minutes, and the volumes were huge. That was the biggest flash sale in Finland ever. We have these iconic products that consumers just love. Of course, all of this is underpinned by our diverse global talent pool. All this is, of course, built around our brands, the power of our brands, and our iconic products. It's with the power of the brands that we built the strong momentum over the past quarters. We have grown for six consecutive quarters. We have shown growth. Of course, the pandemic has helped, of course. When looking at our business, how are we leading the business today? We have the Vita, Terra, and Crea. This is a business area where we drive performance, where we drive execution to ensure that we continue to grow. Looking at the short-term growth, we see that in beginning of the pandemic, Terra, Crea was benefiting from it, and now Vita is benefiting from it. It's a well-balanced portfolio. Jussi is also going to talk a bit about the seasonality and the balance of the portfolio as we go forward. However, to be honest, of course, we have had challenges. Looking at the performance over longer time horizon, we know we have not been able to deliver growth across the portfolio. When we look at the portfolio, we know there's different performance across the brands. We have brands that are showing solid profitability, decent growth. To be fair, we also have parts of the portfolio that historically have not shown growth and have had profitability challenges. This mix of performance has led to the situation you all know so well, that we have not been able to grow over long- term, and the growth has been a long-term issue. That's what we are going to address today and talk in detail about. At the same time, we have in Fiskars for many, many years focused on cost out, focused on the setup to ensure that we are having the profitability at the right level, and this is now a level we have achieved. Profitability starts to be at a decent level, and now our focus is on organic growth going forward. Looking at the fundamentals in the market, there are a lot of fundamentals also supporting us. Fundamental dynamics, and I'll just mention the key ones, as a fundamental for us in Fiskars. It's of course the power of the brand, Direct- to-C onsumer, Sustainability. Then on market dynamics, U.S. of course, and China. We have a lot as a foundation, as the fundamentals supporting us. This is where we are today. We have a strong performance. We fired up, actually up, you can say, our growth engine. 2022, 2020 was a good year for us. With our outlook we updated in October, we know 2021 will be the best ever year for us in our 372 years history. We have fired up the growth engine, and now of course, it's the key thing is to make that sustainable, to make that long-term sustainable growth agenda. For this, we have a clear growth path ahead. I will now talk through our growth strategy and also go through the whole dynamics of it, the rationale, and examples behind it. Let's go to growth. Our growth strategy. Oops. Hmm. Let's see if I can get this forward. There we go. That was just to create the suspense before coming to the growth strategy. Our growth strategy, as I said, it's about strategic focus. It's about transformation levers. We're focusing on the logic, the transformation levers, and enablers. I'll talk through this now in detail, what it means, and thereafter I'll come with the rationale and the examples. Starting with the logic. The logic is we are making strategic choices. We are really making strategic choices, and we're focused on winning. We're focused on winning with our brands, channels, and countries. In all these, we do strategic choices. With winning in brands, what we are doing is we are focusing, we are choosing the brands we are wanting to invest disproportionately more in marketing, in digital, and also invest time and effort in the B-brands. Making strategic choices on brands that we know have the scale, have the opportunity to go the extra mile and deliver growth. Same on channels. We focus on the winners. We focus on the customers who are winning. We focus on the Direct-to-Consumer area. Again, making the strategic choices. The same of course with countries. Which are the countries that we are overemphasizing, focusing to win in? The ones where there's inherent growth in the market with the market dynamic, where we have scale, and where we still have ample of opportunity to grow. That's the logic of our growth strategy. To make that tangible, we have the transformation levers. The transformation levers, these four that we have here, these four transformation levers are, each one of them, they are significant enough to step change our growth. They are big. They are going to step change the growth. Behind each single of these, we have detailed building blocks, detailed plans to be executed. The beauty of this plan, with the strategic choices, the logic, and the transformation levers, is this is all in our own hands. This is all in our own hands to make it happen. In essence, it's all about now having done the strategy, the choices, just to get it done. Talking about the transformation levers, it's commercial excellence, Direct-to-Consumer, USA, and China. I'll soon come also and talk a bit about examples here. Of course, with these choices, the levers that underpin this are the key enablers that ensure our execution, ensure that we are going to deliver this and future-proof the company. This, of course, People, Digital, Innovation and Design, and Sustainability, and I'll also go through those. This is the framework for our growth strategy, and I'll now walk through the winning brands, channels, and countries so that you see the details behind what we are going to do. Starting with the winning brands, this is exciting. This is super exciting what we are doing with our winning brands. When talking about the brands, we have clear roles across the portfolio for all of our brands. With the winning brands, we have five winning brands. Of course, Fiskars. We have Gerber, Rörstrand, Waterford, Iittala, Moomin. These are the ones where we are going to invest much more, invest time, attention, talents. These are the ones we are investing behind, and they have clear rationale and path forward how we are going to grow these brands. At the same time, we have to be realistic and also say it as it is. We have brands that are not performing at the level as Fiskars Group, as a group is performing on profitability, and they have a different role. These brands have a different role until their performance is at par with the group. These brands, we call turnaround brands. Fairly, that's what the task is. Again, clear roles that are outspoken, everybody knows about it. It also means when we talk about investments, that in these brands, our investment horizon is different. The cadence of looking at performance, the cadence of looking at KPIs is different. These are turnaround brands until they are the average of the group. These are winning brands that we are focusing on with the logic. Now let me give an example. Of course, the biggest brand that we have, Fiskars. Fiskars brand, and I have to take the scissors here because they are just so iconic for us. Fiskars is already our number one brand in the company. Fiskars is 42% already of our net sales today. That's a lot. We are making the biggest brand even bigger, focusing on winning, focusing on scale. Also looking at historical performance, already since 2017, Fiskars as a brand has grown 7% CAGR. That's something I think is a good achievement for the brand. We have a brand that's globally recognized. It's a brand that owns a color, and that in the consumer business is something very valuable. We have the historical performance. In addition, it's a brand where we see further expansion opportunities. Of course, we have the opportunity to. The brand stretch is quite enormous for the Fiskars brand. A good example is here on the picture that you are seeing, the Norden concept. This is a concept from the kitchen inside the house expanding to the backyard, to the garden across Terra and Crea. It's really a consumer-led concept. And that just shows how wide the brand stretch is to surround the consumer. Another example, again, about the brand stretch of Fiskars is the clothing range that we had the launch last summer. The Fiskars clothing range that really got attention, a lot of attention in the U.S., in Central Europe, in Japan, and so on. It just shows the power of the brand. Of course, this is underpinned by also the pioneering design of Fiskars, and also showing that this brand, year after year, wins global awards. Here's an example of the Red Dot Award. 2018, 2020, 2021, winning the Red Dot Award. Maybe talking a bit about the capability, I want to highlight the one from 2020 that was given to the Fiskars design team as a whole global team. It really talks about the capabilities in the company. This was one example of a winning brand. Another winning brand, a bit different concept, is also what can we do when we say we're winning? How can we multiply the growth from one area to another? One way is to think in new ways, in different ways of thinking. Here's the case of Moomin. Moomin, many of you are very familiar with Moomin. It's all about the storytelling. It's about the collectibles. It's about the consumer experience to have your own mug with your own identity. Maybe different in the morning, different in the afternoon, I don't know. It's a success in the Nordics. Think taking that and just multiplying that success story into other regions. That's again a growth driver that is in our own hands that we can just take from market- to- market. Therefore, in September, we became a minority shareholder of Rights & Brands. That's a company of Moomin Characters. We are now part of this success story of Moomin, and this enable us to again take this or multiply the success story from the Nordics, our stronghold, it, of course, in Japan as a first step, then take it into China, where Rights & Brands also in September announced that they've done a strategic cooperation with the second largest retailer in Asia. They are big. This is an example of, again, new way of thinking, partnership, finding new tools to grow, and again, it's in our own hands. These were examples of the logic of winning brands in our five brands that we're focusing on and investing behind going forward. With our number one brand, Fiskars, and then the other examples of very different business operating model with Moomin. From that, from the winning brands, let's go to the channels where, of course, we are then having the touch point to the consumers and being there, doing business with the consumers, with the winning brands, and that's of course the channels. It goes without saying that the number one boost of course is in Direct-to-Consumer. Direct to consumer addresses the need of the modern customer. To be a sustainable long-term company, you have to be in Direct-to-Consumer. That's clear for everybody. At the same time, as this is a channel that's growing so fast, it's again a numbers game. The one who's ready, the one who's there making investments, taking efforts, strategically focusing on it in a numbers game, it will of course also be a share-of-wallet game. We are focusing on the winning places, going there full speed ahead. You have heard me since Q2 talking about that we are significantly investing in digital in our organization and capabilities. This is to ensure that we are relevant in the Direct-to-Consumer going forward. Again, as I said in the beginning, we don't start from scratch. As I already said 1/3 of Vita sales comes from Direct-to-Consumer. In Direct-to-Consumer, maybe the most important is this really seamless bond between online and physical stores, be it in our own or our customer stores. Seamless. The consumer experience, the omnichannel experience is coherent. Therefore, we also continue to invest in new stores, for example, in China, because it's not enough only to be good on online. You have to have this seamless omnichannel experience, because we know everybody's shopping journey starts with a mobile phone. It always starts nowadays. On the mobile phone, you do your searches, you go to the flagship store, ask for advice, you go home and Google a bit again, and so on. That's why it's so important to have this interlink. Direct to consumer, I would say maybe quite evident. Another very important lever, and I would say the transformation lever for us, that is maybe the one where we can fastest show impact, and also again, in our own hands, is commercial excellence. Commercial excellence, where we are going to drive performance across all the channels, all the areas where we are. This is just about detailed work and being there executing. Again, it's in our own hands. With the commercial excellence, I'll give you a few examples what do I mean with commercial excellence. For us, commercial excellence is winning with the winners. Not only in Direct-to-Consumer channel, but also who are the winning retail partners? Who are the winning platforms? What are the winning places? Again, ensuring we're disproportionately putting time, talent, and investment into these places. Now when I say this sounds super easy. Again, it's about strategy, it's about strategic choices. Also, commercial excellence is value-based pricing, ensure that we are keeping pricing all the time where it should be. I would dare to say we've been pretty good at that so far this year, so we are already applying this, the value-based pricing. You can see that in our Q3 report where gross profit continues to go up despite the global challenges everybody's facing on logistics and raw material. We are already applying commercial excellence. Another example is in-store and online excellence. Here on the picture, you see a big wall, again, with our color, our big Fiskars wall, and this shows the impact when you have the power of the brand, and you can spread it out and really attract consumers and attract traffic. This is an example from a store in Central Europe. Finally, commercial excellence, I was saying it's about detailed execution. It's just to ensure are we in the right customers? Are we in every shop? Where are we in the shop? And what's our product coverage? Again, just very detailed systematic execution of the commercial excellence, and I'll come back to that in a second. Winning channels, of course, Direct-to-Consumer and then commercial excellence. From the transformation levers, you also saw that Direct-to-Consumer and commercial excellence are the big ones that really will bring our net sales up going forward. From winning brands to winning channels, going to the winning countries. No surprise, of course, the number one is U.S. U.S. already our single largest market by far, will continue to deliver majority of our growth going forward. Of course, U.S. already from a macroeconomic point of view and a consumer product point of view is already. There's really a dynamic pull in the market. In addition, we already have scale in place. We have the teams in place, we have the R&D centers in place. We already set up there. We also have a strong presence, and I would dare to say strong presence with the big box retailers and the big e-tailers. As an example, I was just myself last week in the U.S. visiting our major customers, and it's just amazing because the customers in the U.S. are huge. They are very huge. With the power of our brands and with the portfolio of brands we are having, we always, at Fiskars, gain a seat at the table with the portfolio that Fiskars Group has. This is the power of the brands that we are having. We are meaningful, we are important for the key retailers, the key e-tailers, and we always gain a seat at the table. That's the power of the brand. Okay, so how are we going to grow further? I spoke on the commercial excellence about distribution and the product coverage. It's interesting, the portfolio of Fiskars products that we are having in Europe, we are not selling the whole portfolio in the U.S. We already have products in our hands that we can just transform, apply to the U.S. market and just fully utilize that. Again, having the seat at the table, being important to our customers, we can expand our portfolio that way. Again, a thing that's in our own hands. Secondly, Gerber, our American brand, very American, is a brand that has a lot of untapped potential, so going there as well. Finally, Vita turnaround. Vita turnaround in the U.S. is well underway. The key success factors for Vita turnaround this year has been the commercial excellence ensuring the value-based pricing. That's already another example of where we are already executing on these levers. U.S. continues to be number one, a huge step change in growth foreseen. The second one, China. China, of course, it is the second-largest consumer products market in the world. Fantastic growth in the market already from the pull of the consumers. We are affordable luxury in China. We are really for all the masses of the millionaires in China, so there's a huge consumer group there for us. As you can see from the picture here, our CAGR is 50%. That's pretty impressive. Of course, when you start from small figures, it's easier. But also it is that we've 4x increased our sales in the last three years. Looking at our base of the business, 40% is already e-com. That's a lot with our cooperation with Tmall. The other one is our flagship stores. We have more than 23 stores across China, not only in Beijing and Shanghai, but in the key locations. Again, this seamless omni-channel presence is the key for us to be there. Wedgwood, as mentioned already in the beginning, is the number one in its category in China. That's the example. Why I'm so confident about China is our team. We have an excellent team in place in Shanghai, an excellent local team who are so on the pulse when it comes to social media, how it's so different how it's done in China, who are so on the pulse how you are there in the different social media ways and e-commerce ways in China. They are doing a fantastic job, and this is a team who has delivered this 50% CAGR. Going forward, we have plans in place how we're going to continue the growth, and now it's mainly these figures are mainly only Wedgwood. Of course, with the portfolio we are having, just adding in a very systematic way, very detailed, with a very detailed go-to market, how do we sell the different brands in different channels? What's the approach? What's the approach in different cities, different tier cities? Very detailed, just going brand by brand. That makes sense for the Chinese consumers. Excellent opportunity, not only in the U.S., but in China as well. When we look at the Chinese figures today, of course, in the totality of Fiskars, they are not enormous. However, with the plans we have in place—I'm sure also in this strategic horizon that we are talking about the next four years to 2025, China will be if not number two, number three country for us. U.S. remaining absolutely the biggest. China quickly jumping up and taking pole position. This is how big the plans are. There we go. Wrapping it up, we have the clear logic. We've made strategic choices. We're focusing on winning. We're focusing on winning on brands, channels, and countries. Under this, we have the transformation levers, commercial excellence, Direct- to-C onsumer, U.S. and China, and with very detailed plans behind. In the future, when we talk to you and talk about our performance, we are going to come back to this, and we are going to report on performance and success in this and be very transparent where we are going, I and Jussi. That way, we can also see where are we with the growth strategy going forward. Of course, this is underpinned by the enablers, People, Digital, Innovation and Sustainability, and maybe just picking on a few of these. People, yes, also with this growth strategy, this is also a growth strategy for our talent and also career opportunities from brand to brand, country to country. Digital mobile first, always the mobile. I've spoken a lot about that. It's not only about the consumer facing, the consumer experiences. It's a lot about data and analytics and being there, having the foresight, knowing what's going to happen, not only on consumer trends, but also, let's say, the supply chain. All the time being data-driven, analytical, and driving that forward. Innovation and design. We're a company who's known for pioneering design. We're known for that, and with that also spirit of going there to the new frontiers, being there, trialing new things. It might not always be innovations in terms of product. It can also be business innovation in terms of partnerships, like the Moomin example. Pioneering design, also talking about the mindset and behavior of being fearless, going out there, and of course, Sustainability. A few words on Sustainability. There we go. Sustainability is the backbone of everything we do. We are a values-driven company, and Sustainability is a key part. We have the mission against the throwaway culture. Here's a good example about a glass that's made of 100% recycled glass. We already have quite a big portfolio of products made out of recycled products. We have scissors, vases, glasses, and so on. Also, of course, our Vintage service is playing a key part here. We're also going for a carbon-neutral future for the science-based 1.5-degree target. This is of course the hardest one, and this is one we really wanted to show that we are driving impact and in the future going also to be much more concrete on these are the steps we are going to take. This is where we are. This is the steps we've taken so that it's a clear sustainability roadmap, how we are following and also showing that we are driving impact. One example is, for example, in our emissions in our operations, already now we've cut 50% of emissions since the baseline 2017. That's just one example, but we will be much more systematic in talking about this. Of course then for increased enjoyment and well-being for the people and the planet. On Sustainability, there's a lot we need to do. We need to drive business impact much more. We have a proud base to start, and this is really the backbone of who we are. On diversity and inclusion, just as a starting point where we are, already in Fiskars today, we are gender neutral. If you take top management or if you take the whole workforce, it's 50/50 female, men. Also looking at the age pyramid, it's very flat across the age. We have a good starting point, but of course, that's nowhere near where we need to go, driving impact for ESG. This is all about Sustainability, ESG. This is our growth strategy. We are extremely excited. We've started on many of these, and they are already showing impact in Q2, Q3 report, and we're going to continue to drive this and also communicate to you where we are going. We are going to come back and with this strategic framework where we are tracking. We have a strong foundation. We've already started to fire up the growth engine with the six quarters. 2021 will be the best year ever in the history of Fiskars. Now with the strategic choices, focus and clear transformation levers, we're going to deliver the growth going forward. The beauty of this growth strategy is that when you wrap this up, this answers all the value creation levers for the company, and then results in the updated financial targets. Now I hand over to Jussi, who will talk through the financials and the value creation. Thank you. Thank you, Nathalie, and hello everyone. It's good to see you here on site and the ones there online. In the next, roughly half an hour, I will walk you through first our financial targets, explaining, the logic behind them, and then also I will provide you with the financial context of those building blocks Nathalie just went through. Thirdly, I have a couple of technical topics which I will share with you at the end of my presentation. Let's start first, with our historical performance, our recent performance there. Here we go. The last six quarters we have had a rebound, in terms of top line growth. Top line growth is 9% up, last 12-month basis. Profitability up 400 basis points on EBITDA margin. Admittedly, it's partly boosted by post-COVID and COVID impacts. On the other hand, when it comes to profitability, those two programs, we have programs for transformation and for restructuring. They are already now benefiting our gross margin and profitability overall. While we have been very pleased with this improvement that we have seen, we do know that there are that kind of tailwinds which are not repeatable, and therefore our focus is now to find a sustainable improvement model. Those new financial targets I'm going through now, they illustrate this kind of sustainable improvement. Okay, here we go. We have new four financial targets. On top of that we have dividend targets, which I will explain separately then. These financial targets are set to drive profitable asset efficient growth. Let's go through them one by one. First, on net sales. The net sales target is now set at organic FX-neutral growth that should be mid-single-digit. The difference from the past is that it's now organic target. Previously, it was also including M&A. It's a range versus this kind of fixed number. On profitability, the target is now set for EBIT margin. We are saying that EBIT margin should be at mid-teens, excluding one-offs there, by end of 2021. The difference is that it's now EBIT margin instead of EBITDA margin, and it's time-bound, by 2025, within the next four years. When it comes to cash flow, the cash flow target is now set, cash conversion, i.e. free cash flow net profit should be more than 80%. There the target is set so that it allows us to invest in those strategic organic building blocks and still deliver a good solid free cash flow. The fourth target, what is set for the balance sheet, is net debt EBITDA must be at or below 2.5x. These targets, we have three sub-targets for that. First is, of course, it will keep us safely at investment grade level. It allows us to continue investing those organic building blocks. Then thirdly, it provides us with certain firepower, if so needed, for non-organic growth. Let's walk through all these targets one by one, what's included and how we have built them up. First, on net sales. Nathalie explained to you our winning brands, winning countries, and winning channels. What you can see here on the left is the current sales, the current last 12-month sales, split by winning brands and then other brands. You can see that winning brands are roughly 70% of our net sales at the moment. When it comes to countries, China and U.S.A. are a bit roughly 40% of company sales. When it comes to channels, those so-called modern channels, our own e-commerce, own retail, are a bit shy of 20% of our current sales. What you can see here on the right is that how these winning countries, winning brands, and winning channels, how are they contributing this mid-single-digit growth target? As you can see, the winning brands are delivering most of this targeted mid-single- digit growth. When it comes to those two countries, U.S. and China, they are roughly 60% of this growth target what we have. One thing should be noted is that while those new channels, our retail and e-commerce, while the share of the current sales is quite tiny, admittedly 20%, you can see that their contribution to this mid-single-digit target is quite significant. Half of the expected growth is coming from those new channels. That's about net sales. About profitability. On profitability, we have set a future P&L structure. When this is an organic growth plan, an organic growth strategy what we have in place, the profitability improvement is mainly driven by gross margin improvement. On OpEx, we are focusing on efficiency, so that part of those OpEx investments what we will have, will be funded through OpEx efficiency. Let me explain the whole slide here because it's quite complex. What you can see here on the left is our P&L from the certain periods. We have carved out 2020 here because the whole 2020 was one-off. We can always take it out from statistics. Last 12 months, end of September, is something that we do have tailwinds from those COVID-19 actions. Whilst the baseline is a bit mixed bag of different type of trends there, the targets are very clear. We are targeting to 46-47% gross margin range for the company. The total OpEx is taking some 30% of it. The marketing spend should be in the range of 4%-5% of sales, and an SG&A level of 27%-28%. You can see that this is a growth strategy. The main improvement is coming from gross margin, ending up to this roughly mid-teen level of EBIT margin. Let's take component by component now, where the improvement or efficiencies are coming. First on gross margin. Nathalie explained the transformation levers that we have: commercial excellence, D2C, U.S.A., and China. What you can see here is the current gross margin by BA, what we have on the left, and then the levers. When it comes to commercial excellence, the good thing with commercial excellence is that it's contributing all the businesses that we have. On D2C, it's very much Vita business, but also now growing in Terra and Crea, but the main contribution is coming from Vita. U.S.A., which is a home market for Terra. Terra is mainly contributing that one. Also now we see good growth with Vita business in U.S.A. China, which is very much a combination of Vita brands, D2C. You can see that it's Vita business which is mostly benefiting from that one. What you can see here on the right is that this gross margin improvement is very broad-based. All the BAs are improving quite nicely, the biggest improvement coming from Vita and Terra, so that we get, at the group level, to this 46%-47% range. That's about gross margin. Moving on to OpEx side. Let me first explain the right part of the slide. We have now structured OpEx for more strategic perspective. We have growth-driven, top-line driven OpEx, typically sales expenses, including D2C. There we expect is to follow top-line growth. However, within that bucket, the D2C OpEx will grow, of course, because D2C P&L structure is a bit different from wholesale. That increase is then offset by improvements there on the wholesale side. When it comes to investments, so including commercial excellence, including product development, product marketing, and e-com, as well as digital. There we see that the share of our OpEx structure continued growing in this next year, next four years period. We have general and admin there, which is meant to stay pretty flattish. There we are driving those operational excellence and operational improvement overall. What you can see here is that the target is that this investment OpEx part will grow. Growth driven will stay practically unchanged because we have, within that bucket, we have offsetting items. G&A, general admin will come slightly down. Let's focus then on those investment part of our OpEx. As said, we have couple of big levers there, the ones Nathalie already explained. The first is commercial excellence, then D2C and digital. Commercial excellence and D2C are the ones which are transformational levers, whilst digital is then enabler in our terms. When it comes to commercial excellence, the good thing with that is that, first of all, it's quite OpEx light. You saw what are the key components of the OpEx commercial excellence in Nathalie's presentation. It's almost like a pay-as-you-go model. We invest today, we get returns very soon. Those are the actions when it comes to timing, which are already in place. They are contributing our growth, they are contributing our gross margin improvement already. When it comes to D2C, there we are now building a repeatable model. Once the model is up and running, then we are driving scale and efficiencies. There the lead times are a bit longer versus what we had in commercial excellence. The third one, Digital, that's enabling, especially growth in D2C, especially in e-commerce. Also when we are talking about e-commerce overall, then data-driven marketing is the one where we are investing heavily with our Digital. There all the analytics, all these kind of things we are now putting in place, they are then the investments we call digital investments. It's also then not only e-commerce, but when it comes to our other business models there, it's clearly enabler. Investments have started already. We started them in Q3. We continue now in Q4, and also next year. Bearing in mind how big share of investment OpEx takes from our total OpEx structure, you can see that these are the ones where that money is going. That's about P&L. Moving to balance sheet and cash flow, and let's take cash flow first. The last three years' cash flow is not a best proxy for the future cash flows. Here you can see our last three years' cash flow by components. A couple of call-outs there. One is that when we have had a period of no growth, you can see that actually working capital has been funding the business instead that we have invested in working capital. Another thing is that CapEx part of this cash flow has been quite small. What you will see in future is that, of course, when we continue growing, we are investing or we need to invest in working capital. However, the working capital growth is less than top-line growth, so we are also driving efficiencies there. On CapEx, due to the fact that we are investing in retail, we are investing in Digital, the CapEx will grow up from the current level. Let's take CapEx then separately. Overall, what we can say is that even though we are now investing in organic plans, our free cash flow generation remains very solid. On CapEx. What you can see here is our historical CapEx from the last three years, structured by supply chain, D2C, which is in this case retail, digital and IT, and then other. You can see when it comes to CapEx size in terms of percentage of net sales, you can see that we are getting back to the levels where we used to be in 2018, at roughly 4% of sales. The structure will be somewhat different. You can see that digital and IT take a major share, roughly 45% of our future CapEx needs. When we continue growing in retail share of our total CapEx will increase. Roughly one-fourth of the total CapEx goes to D2C. After cash flow, the balance sheet. The balance sheet targets, how it's now set, are net debt to EBITDA 2.5x or lower. You can see that we are well below that target at the moment. You can see that the headroom to this target level of 2.5x is quite significant. This provides us with a wide toolbox how to fund our growth plans, and we have clear priorities how to use this toolbox. The first priority is to ensure organic growth. The second priority is to ensure returns to shareholder in terms of cash dividend and/or share buybacks. The third one is that we need to have sufficient headroom there also or firepower also for M&A, if so decided for non-organic growth. Underlying the importance of funding organic growth first. What you can see on the right is our net development, and bearing in mind that typically our historical pattern of cash flow is that Q4 cash flow is quite strong. We are getting close to net cash position, excluding of course lease liabilities there. We have enough muscles there to invest in this growth strategy Nathalie just explained. That's about our four financial targets. The fifth one, which is our dividend policy, no change there. Stable over time increasing dividend is still something we are focusing on. With the expected cash flow generation, with the expected balance sheet structure, we feel very confident to keep this target. The track record that we have with base dividend from the last three years, you can see that it's growing. Of course, the target is to continue in accordance with the policy with this path. Now when we have gone through the financial targets, we see that all these four financial targets are then contributing this value creation. All three valuation levers there, profit growth, change in company profile, valuation multiples, and then cash flow contributions. They all are covered. The profit growth, first we secure profit growth through increased focus on gross margin improvement because we see that the gross margin is the engine of our P&L. We need to keep that on improving track. Then on OpEx, we are focusing on flexibility so that we need to save somewhere to invest somewhere. That's a very clear principles. Then most importantly, we have a drumbeat in place. We manage both short-term and long-term improvement through our tight drumbeat. All the strategic actions, Nathalie, went through, we have KPIs, we have dates and gates, and we are following that on monthly basis. When it comes to a change in company profile there, we are now targeting from flattish top line to sustainable mid-single- digit growth. We are expanding our footprint in modern channels, so that focus is on D2C and digital marketing. Of course, we have increased focus on Sustainability. The third lever, our cash flow contribution, we see that even though we need to invest more in CapEx, even though working capital starts slightly increasing there, we continue delivering a solid, stable free cash flow. Of course, we follow our dividend policy, a stable over time increase in dividend. Those were the four final targets. I explained how they are then improving our value creation levers there. Let's move a couple of more technical topics there. The first one is our cost of goods. You all have seen the input cost inflations there in terms of raw materials, in terms of logistics, in terms of energy lately. Let me explain what are the impacts on our P&L. First, going through the pretty busy slide. What you can see here on the left is our cost of goods sold split to own production, sourcing, and outbound logistics. If we just take cost of goods, then we can say that 40% of our cost of goods is in own manufacturing and 60% in sourcing. When we take cost of goods sold, including also outbound there, you can see that own production is roughly 1/3, sourcing is roughly 50%, and then logistics takes the rest. Peeling the onion a bit, going to this own production, you can see that direct raw materials are roughly 50% of our total cost structure, then labor is one-third. This hot topic, energy. You can see that actually energy in our own production represent quite small share. These direct materials again. Plastic, steel, aluminum, other raw materials there are roughly 50% of our cost structure. What we have now experienced during the past nine months there is an input cost inflation of roughly EUR 25 million. On a full- year basis, we see that the full- year cost inflation is approximately EUR 35 million, so that roughly half of that EUR 35 million is coming from inbound logistic, i.e., sea freight. The rest is pretty evenly split between raw materials and finished goods. What you have seen already in our first nine-month result is that we continue improving our gross margin, meaning that price increases and our own internal efficiency improvement programs. They are actually more than mitigating the cost inflation that we have seen. That will continue. We don't see any easing there in the inflation pressure next year. 2022 plans are based on an ongoing inflation. At the same time, the actions that we have to mitigate that will continue. We continue with price increasing, we continue with own internal efficiency improvement to continue mitigating, and not only mitigating, but continue improving our gross margin. That was the first, this kind of technical topic. The next one is our seasonality. Let me first explain the bars here. You can see our net sales and EBIT split by quarters, split by BAs. The good thing here is that at the group level, you can see that this is pretty evenly split between the quarters. We have some seasonal shifts there in Vita. Vita is very much second half biased, while Terra is first half biased. They are nicely mitigating each other, both on net sales and on profitability. At the group level, we are pretty evenly split between all four quarters. When it comes to visibility what we have in the market, it's best in Terra. Roughly half of Terra business is based on pre-orders. In Europe, we have afour to seven months order intake period there, so we have pretty good visibility already. In U.S.A., it's slightly shorter, but nevertheless, at Terra level, we have good visibility for the first half 2022 already. In Vita, the period is a bit shorter, and when it's so much second half biased, we start getting that visibility typically, late Q2, early Q3. Crea, as you can see, it's pretty evenly split between the quarters. Those were the two technical topics on top of these strategic financial targets that we have set for the company. Now I think it's time to start Q&A. Great. Thank you for the presentations. Now we have some time for questions- and- answers. As a reminder, you can post your questions under the Q&A tab in the chat function. I think that we'll start with a question here from the venue. Do we have any questions from the people here? Okay. Let's Hi, thank you for the presentations. My name is Jutta Rahikainen from SEB. On the portfolio, you started with grouping the brands into categories, and I think the evident question is, the lower box there, is that a group of brands that you will keep throughout the strategy period, or are they perhaps for sale? Thank you. Thank you, Jutta. We call them turnaround brands for the reason that we are giving them the attention to turn them around and bring the profitability where they earn to be. Of course, we are all the time also then looking, when it comes to our brands, any parts of the business, are we the right owner? That's a thing we are looking at all the time. For the time being, yes, we are the right owner for this, and we're focused on the turnaround, of course, more importantly on the winning brands. Thanks, Jutta. If I may, I'll take a second one as well. On the market growth, I know this is a tricky one because you have so many segments and geographies, but now you target this, say, 5% organic growth or mid-single-digit. What would you say that the market growth is on average, perhaps? Or if you want to talk geographies, that's also fine, or brands for that matter. Yeah. Thanks. Thanks, Jutta. I think this is a very key for the whole value creation model and also the financial targets. We are focusing on having these levers in our own hands. We don't assume any market growth. We're just taking flat, and all this is on top of, and it's in our own hands. What we've experienced now in the past quarters is, of course, the help from the COVID. Going forward, we take it into our own hands. We are focused on execution and just track that. I mentioned in the beginning also the fundamental dynamics, but they are just fundamental dynamics, so no growth additional attached there. Great. Do we have any other questions from the public? If not, then we can take one from online in between. How about M&A, is that an option, Nathalie? Yeah. Thank you, Kristian. M&A, Jussi and I have repeatedly. I think we've used the word organic growth pretty many times today, and there's a reason for that. A healthy company needs to show that we can grow ourselves, and this is what all the growth strategy is about. It's about us growing. At the same time, of course, we are looking at what's moving out there. Of course, we are looking. The essence of the growth strategy is to show organic growth, show that we are doing it and executing it quarter- by- quarter. Jussi also showed that we have firepower. Jussi mentioned it on the balance sheet. We have ample firepower where needed and when the right opportunity occurs. This is about organic growth. Great. Maybe as a follow-up question on that, because, if you don't do any M&A, the balance sheet is really strong. Where's the money going to go? Yeah. There we do have, as I said, clear principles how we are using our balance sheet, how we are using our cash flow. The first priority is really to secure and safeguard our organic growth. Secondly, we are providing returns to our shareholder in terms of cash dividend and or share buybacks. Thirdly, the M&A there, if so decided. These are the clear principles. The luxury of having strong cash position and strong balance sheet allows us to continue to invest in organic growth. Great. All right, could you repeat which brands will be spearheaded for growth in China? As you stated, Wedgwood is a turnaround brand. Could you clarify that? Yeah. That's a good call-out. Wedgwood is a turnaround brand on a global Fiskars level. When we look at China, Wedgwood is performing extremely well. I said it's the number one in its category in China, in the Chinese markets among consumer perception. It's performing there. It's highly profitable. It's going well. In China, it's not a turnaround brand, but as a whole, as a company, its profitability is still below average. We of course don't want any diluting brands. Everything has to support taking the company and the gross margins that also Jussi was talking about upwards. Great. One for Jussi. Could you clarify a bit, you showed that the BAs have different gross margins with Vita being the best, but then again looking at EBITDA or EBIT now, that mix is different. Could you explain the differences by BAs? Actually, that's a very good point. As I said, U.S. is a home market for Terra. Its biggest exposure is in U.S. Typically U.S. market, your P&L structure is a bit different. Your gross margins are somewhat lower, but you are much more OpEx efficient, yeah, in your distribution in U.S. because you have a lot of big boxes there, and therefore it's very OpEx efficient. It's about the P&L structure very much. Vita is more exposed to Europe, and then of course, higher gross margin benefited also from D2C, but then of course, higher OpEx there. Yeah, high OpEx there. Yeah. Great. Which is the driver behind recent good performance in Vita profitability? Is it from the English & Crystal business or former Scandinavian brands? I can start. Yeah. Yeah, I mean, it's a combination of both. Starting with the bottom line, the cost programs that have been ongoing for many years, the focus on internal setup, that's paying dividends now. That's really supporting to bring it to new profitability levels. In addition, when we look at the different brands, we see a certain mix of performance. They are growing. I would say it's all of the brands. Specific to that question, English & Crystal Brands is starting to turn around. They are also growing. Majority of the brand growth comes from what we're talking about, the winning brands being Iittala, Royal Copenhagen, and Moomin. Great. About sourcing and production, maybe Jussi can take that. The share of own production has decreased somewhat during the last years. But what's that share going to be going forward in the growth? Of course, when the volumes are growing, they are mainly growing there on the sourcing side, because we haven't yet opened any new factories in that sense. It's very much sourcing driven. Of course, I would say the trend what we have seen most likely will continue. The growth is coming more from those sourcing channels rather than own manufacturing. Yeah. Have you any comments on the category level growth, from the different BAs? Well, I can take that. Yeah. Yes. On the category level, growth, we are more going to the thinking really about the consumer and looking at it from brand perspective and what I call the surround the consumer. What is it all a consumer wants when they talk about Fiskars? Is it new clothing? Is it a scissor? Is it the axe? Going from the consumer, looking at the brands with the winning brands, and then having the consumer concepts and offerings. Not being so stuck in category by category. Great. About our balance sheet. Fiskars is a very old company. Have you found some hidden value in your balance sheet that you could sell or book profit? Land, forest, old unused brands, et cetera. Maybe that could go both of you. Yeah. Yeah. Fairly new both, so. Yeah, if I may start there. Of course, we are going through our balance sheet, if not every day, on a very constant basis, going through where we do have potential. Again, back to what Nathalie said, every balance sheet items we need to figure out are we the better owner, are we the best owner for that particular assets That will continue. Yeah. Yeah. Do you have any questions from the audience in between? No? There were some. Oh, yeah. Okay, thank you for the great presentation. Thomas Westerholm here from Inderes. First of all, you previously strived to decrease the amount of SKUs you have available. How should we look at that going forward now that you talked about extending your brands and also- Yeah. driving up the net working capital? Yeah. That's a very good point. We used to talk about the SKU per net sales and driving that down. That's been part of also getting English & Crystal Living to the shape they are today and in part of the turnaround. Going forward, of course, we are so focused on the consumer and the consumer needs. It's more about SKU efficiency that we are looking and not the amount of SKUs per se. Because consumers also online in the digital world, and also what I was talking about, the in-store excellence with the big walls. We want to be excited, we want to find new things. Then it's really about this consumer experience and being relevant for the consumer with a love for that brand. Net sales SKU efficiencies is the one we are looking at. Thank you for the great answer. If I could go for another one. Now that you're focusing more on Direct-to-Consumer, how are some of your retail partners reacting to this as you're kind of pushing onto their playing field as well here? It's very simple, the power of the brand. We live together, we grow together. Actually, I've been a lot in customer meetings all over the world, everybody appreciates our own flagship stores as well. It's even a catalyst also for our retail partners that we have strong flagship stores. In our business, in our categories, with these kind of products, it's seen as an advantage that we also do it. It's omni-channel experience. Yeah. If I may on that one also, it's part of our commercial excellence to have channel right assortments, so that what we have in our own store, you can't necessarily find in the retail stores, and therefore we can coexist with our retail customers quite nicely. Yeah. Okay, that's all for me. Thank you. Thank you. Thank you. Do we have other questions? Yeah. Just a moment. I have a follow-up on the, say, growth investments, and I want growth CapEx linked to the digital part. Could you just give us some example? I mean, digital investments is a general broad term, so a few more examples what they actually plan to spend the money on. Linked to that, I'm also curious on the data part, also that a very hot topic, data is worth a lot, but what do you exactly want to do with the data, and how does it drive your growth or other positives for the company? Thanks. Yeah. If I may start, and then you can follow there. The practical examples, what it is, first of all, we call it digital and IT. We have also this kind of base IT investments there to set the bases right so that we can continue growing. We have this kind of big investments there in the U.S. when it comes to base systems and the likes included in this slide pack. But more interesting is those investments in digital. It starts from the whole e-commerce platform, how it's built, and how it's then linked to this data-driven analytics or data-driven marketing, i.e. analytics there. How much actually we can collect information from our customer, be then very targeted with our offering, be very relevant to our consumers, and building that platform is admittedly quite expensive, and that's where we are investing. Yeah. Okay. Other questions from the audience? We'll take one online in between. Regarding Moomin and Arabia, now the logos are joined, so that's Moomin by Arabia. Could you, first of all, explain that, and second of all, maybe open up a little bit about what the kind of position of Arabia is in this new context? Yeah, thank you. Yes, today with the mugs and the plates and so on, the brand is Moomin by Arabia. Moomin, of course, is not our brand, it's Moomin Characters brand that we of course are now partnering together with. In that context, for this range, it's Moomin by Arabia. Going forward, with our global strategic partnership, this is where we start. I go back to surrounding the consumer. It can be much more. It will not be only Arabia. We are of course focusing again, like you see with the whole strategy, we are focusing on scale, we are focusing on where we're already winning, so of course we will start with where we are known, as we know how to do well, but this will also expand. About Arabia, thanks for that question. We talk about the winning brands, the five winning brands that we are focusing on. In addition, I showed the turnaround brands. In there between, we have a lot of brands, and they are divided into regional and local, and in addition, tactical brands. They are there doing profitable growth, supporting, being part also of the spread of the commercial excellence, but they are there as profitable growth brands, going forward. Arabia in particular is a local brand for the Nordic market. Very clear roles and responsibilities and investments for each brand. Great. Another question. Are there plans to open own stores for Fiskars, since now a winning brand? The second question related to that, for which brands are opening flagship stores relevant? Thank you. So today, of our 362, it depends a bit on the day as we are opening and it's a fluid area. We have roughly 362 stores. They are Vita brand stores. They are Vita flagship stores. Going forward, of course, again, with looking at the consumer needs, we will have different kind of concept stores. This depends very much on the market. What works in maybe Scandinavia might not work at all in China. As one of the transformation levers is Direct- to-C onsumer. At the same time, Fiskars is our number one brand that we want to significantly grow. Direct- to-C onsumer with omni-channel presence will be important also for Fiskars. But concretely saying when are we going to open or not. If I may add on that one. On top of opening new stores, we are also focusing on improving our like-for-like growth in our existing store profitability and store efficiency improvement there. At the very moment, it doesn't make any sense to talk about like-for-like because of 2020 and 2021 also partly it has been closing, reopening, closing and the like. There's not a solid base for like-for-like growth. Of course, like-for-like growth in our own stores, they must contribute to meeting our targets. Yeah. Great. Do we have other questions here from the venue? I guess that we are then final for today. Nathalie, if you would like to say a few closing remarks. Thank you. First of all, thank you everybody here in Helsinki. Thank you everybody online. Thank you for the good discussion. Let's continue the discussion. We are excited with Jussi, we have a growth plan. It's detailed. We have a clear logic with strategic choices, with the winning brands, the winning channels, the winning countries, and then the transformation levers, the four ones, commercial excellence, Direct-to-Consumer, U.S. and China. This we are now diligently executing building block by building block in detail. Going forward, as said, we will come back and talk to you about the steps we are doing to advance this and talking always in these terms, where are we going. Fantastic. We're excited, and I can see also from the smiles here in the room that you're also excited about the growth opportunity for Fiskars Group going forward. Thank you so much. Thank you. Thank you.