Hello, welcome aboard for Harvia's 2020 financial review. My name is Tapio Pajuharju. I'm the CEO, and next to me we have Ari Vesterinen, our CFO. Hello. Welcome. We'll run the show today. I try to entertain more on the operational issues and what we've been doing and achieving on the marketplace, then Ari will have a deep dive on the financial as we speak. After the presentation, we'll have opportunity to entertain questions and comments from the audience. Welcome aboard. When starting with the review of the 2020, I think you realized that the saunas have been hot, so has been Harvia's operational machinery and equipment. It's been a very strong year on top line. Also, on the bottom line, we've been able to grow the profitability, both on the absolute terms as well as on the relative terms. I'm happy to say that in almost all of the markets, as well as in almost all of the product categories, we've been able to gain profitable growth. As we stated on the previous round, we still see a bit of a incremental activity on the marketplace. We call that advanced consumption, and I think that feature has been visible on most of the markets. Having said that, at the same token, we also experience incremental, what I would call maybe publicity and a sauna trend, as well as the health and wellbeing trend is boosting this general knowledge of the sauna and spa and the impacts of that. During the year, we've been improving our capacity, as you realized, it's not been enough, especially on the sauna market we've been having some limitations for the capacity in the Central European marketplace as well as on the U.S. On the heater and componentry, we've been expanding in China, we've been expanding in Finland, and we got also the EOS operation supporting the demand in that respect. Going forward, as you may have already heard today, we will have some further investments in the U.S. to improve our operational capacity in the sauna production, and I will have a bit of a deeper look at that in a later stage. Regarding the Muurame facility, we are entertaining opportunities to expand the capacity over there, but that's still a bit premature to tell what we are exactly going to do, and we'll keep you up to date at the later stage of this year. Integration with the EOS team, happy to say that we have a good and professional team on board. We've been able to do most of the things we agreed to do on the integration, but we've been able to do that on the virtual format. Still not able to travel, still not able to meet face-to-face, but we've been doing a good job together, and that's also visible on the numbers, and you will see that in a second. Last quarter, we were growing quite nicely on the top line, and it was escalating towards the year end, 70% as a total number, and the organic growth close to 40%. On the currencies, we got a bit of a headwind. You can imagine that both the Russian ruble as well as the U.S. dollar took a bit of a step back, and that had an impact both on the top line as well as a slight dip on the profitability. Even with this unfavorable impact, it's been a very good top line and a very good bottom line. Operating profit, both on the adjusted format as well as on absolute terms, good numbers in that respect. Earnings per share going nicely up and operational cash flow very good, exceeding EUR 10 million for the last quarter. I think the Harvia team has done a very good job as a totality. Full year numbers still good, slightly down from the last quarter. Excellent numbers, almost 50% top-line growth and an organic close to 30%. I think the long-term historical growth rate in the sauna and spa industry has been slightly shy of 5%, so this is clearly a different magnitude in that respect. With this one, we can say that the sauna market has been growing faster than in history. At the same token, very happy to say that Harvia has been gaining share, and we've been really gaining share in all of the markets where we are present. We don't know the exact numbers of our peers, but I think it's fair to say that we used to be on the top three on the podium, but on the bronze medal position. Today, we are either on the number one or shared number one. Hard to say. KLAFS is the historical leader in the industry. We are exactly at par or slightly ahead. No one knows what that is, but when we know, we'll share the final information. Adjusted profitability, an excellent improvement, EUR 24.4 million, and exceeding our long-term target quite nicely at 22.4% on relative terms. With the comparable exchange rate, slightly better in that run. Earnings per share for the full year growing nicely and operating free cash flow exceeding very well the last year number. Net debt on a EUR 30 million and a change, equity ratio on the 42%. Solid numbers for the year. I think on the strategic paths we've been executing and keeping eye focused on what we've been doing in the past. No major news on this one. On the upselling of the heaters, the team has done a good job with all the brands, all the markets, that's been boosted with the very professional offering of the EOS, both on the premium residential marketplace as well as on the professional marketplace. I think within the team, we are always saying that the sale of a complete sauna room is maybe the best example of adding value in the marketplace. On this one, we've been extremely good on the Central European market and also on the U.S. I think the Central European market has been an area where we've been gaining speed, and we've also been gaining share. We've been doing that together with our partners, so job well done for the team. As said, the EOS team, even though I have to say that like the KUSATEK, which is the gas-driven heaters, due to the COVID-19 installation and service has not been maybe easy to implement and execute. As a totality, the EOS team has been performing extremely well and I'm very happy for the efforts they've been doing. On the expansion, I think we've not been opening too many new markets. Still in the infancy with the Oceania Pacific, but we've been gaining baby steps over there. Asia, unfortunately, the COVID-19 has had a bit of a drawback for our Asian efforts, but we'll come back to in a later stage. All of the rest, very happy. In the U.S., especially happy for our own direct sales as well as for our own web store. They've been doing an excellent job, and they've been able to upgrade, they've been able to upsell, and in all of the terms, a great job done over there. Central European sauna sales, amazingly good in Germany, also in Austria, Switzerland, and the neighboring markets, solid performance. I think even though we are still not the leader in Scandinavia, we are behind the number one, but we are catching up and the team has done an amazing job over there. Even though not mentioned over here, on the domestic marketplace, Finnish team also been doing good. Even though the growth numbers are not 30% and above, we've been gaining share very nicely on the home market in that respect. Markets where the pandemic has had an impact, unfortunately, quite a bit in all of the Asian markets. Doing business over there, you need to meet with the people, you need to discuss, and they are mainly project related. Same applies for the Arabian markets. What we have been able to sell at the earlier part of the year, we've been implementing and executing. To get new business on board has been bit of a tedious work and not so easy. Russia, on and off, and as you can imagine, Russia market is never boring, and we had good moments over there. As a totality, the market has been hurt quite bad with the pandemic in that respect. Altogether, I think the EOS team and the Harvia team, a solid work in Russia, even though it's not visible fully on the numbers. On the productivity, that's an area where I think it's good to remember that we are still a very traditional company. We basically design, develop, and manufacture everything we sell. We've been ramping up our supply chain quite a bit, and our own team together with our partners, amazing job done. Ramping up a business which in the past have been used to have 3%-6% growth and now experiencing 30%+ growth, not a job which is very easy and can only be done with an excellent dedication and team effort. Amazing job done. Manpower, for sure, we've been adding manpower over the operations, both in Finland, Romania, U.S., and China. We’ve also been working long hours, so excellent agility and flexibility in that respect. New machinery, we’ve been installing in the China operation, in the Romanian marketplace for the sauna manufacturing, a bit in the Finnish marketplace, and U.S.A., the expansion over there on the facility is ready. Most of the machinery is in, up and running, but some of the ones which are now sailing in late due to the logistic challenge outbound of Asia, they are delayed and will be installed roughly by end of this month and beginning of March. We are fully intact on the U.S.A. marketplace. As said, we will consider further expansion on the capacity, both on the sauna manufacturing as well as the heaters and componentry going forward. On the productivity KPIs like the man-hours per piece sold, man-hours per euro sold, excellent results in all of the factories. Good job done. We are not immune to the pandemic. We've been also having cases and incidents with the pandemic, but a very good professional precaution and activity with our team. We've been almost immune to the impacts in that respect. On the certain markets, we see positive, favorable impacts. I think on the Scandinavia, partially Finland, bit on the Central Europe, people have been investing for their homes, rebuilding. They've been also activating the plans on maybe upgrading of the second homes and holiday homes. For sure, it's not fully sauna related, but a certain stage during the improvement project, bathroom and the related spaces will be on the agenda. We realize that the health and wellbeing trend is helping us to sell the sauna easier for the new beginners in the sauna world. That's a positive impact. On the other hand, Asian market is almost dead. Same applies for the Southern Europe, Spain, Italy, France, still very difficult. Arabic markets, very difficult. Russia, it depends on the region and depends on not even the month, more on the week, how they are performing. A bit volatility over there. Overall, Harvia and Harvia team, a good job done. We've been able to keep us safe, healthy and strong, and fully operational during the 2020, and the same continues this year. When having a look on the regional distribution of the top line, especially for the last quarter, I think it's remarkable, even though we've been growing very nicely on the local domestic marketplace, which used to be, in the history, roughly half of the business, 1/3 of the business. On the last quarter, 18%, meaning that 82% of the business goes outside of Finland. We are gradually becoming a fully international company in that respect. Germany, a lion's share of the market over there. Central Europe and the rest of the European countries, a healthy portion. The North American pie is growing as we speak. It's, I think, in a way, a bit surprising that even though we've been growing so fast, still European markets together with Germany are so dominant that we foresee quite a bit of further opportunities and leeway on the North American marketplace going forward. Historically, Harvia has been a heater company. We've been trying to make strong steps to become a holistic player in the sauna and spa industry. We've been able to do that, but the acquisition of EOS brought us a sizable part of the heater related business on that front, and that's why still roughly half of the business is heater related. On the other hand, sauna is growing quite fast. Control units, thanks to Harvia, Sentiotec, and especially EOS, taking a big jump forward. The only one where we've been struggling, and that's mainly due to the geography, Russia, Arabic countries and Asia steam. Steam where we have lost share of sales, but we have not lost market share. We estimate that we'll be maintaining roughly the market share. If and when you see the numbers of the other steam generator makers, they've been experiencing the same or even worse on the steam marketplace. I think the reason for the steam, why it's hurt by the COVID, it's mainly install base and the people who are installing, the plumbers and electricians. They've not been able to travel and go to the destinations where they do their works. That's why the activity has been slower than anticipated on the steam. Full year picture, not much different, roughly the same. On a full year basis, the share of Finland is clearly higher, 25%. Rest of the allocation by the market follows the same pattern. The full year share of the heaters is slightly exceeding the 50%. Having a look on the last quarter market by market. As said, Finland, even though it's not leading the pack on the growth, still clearly ahead of the market. We've been gaining share, both on the professional as well as on the residential genre. Scandinavia, amazing numbers. Keep in mind that we have a fairly small but professional sales team of two people doing excellent job over there. Gaining speed in Sweden, gaining speed in Norway, and gradually improving situation in Denmark. We still have lot to do over there. Germany, where we've been able to improve our physical presence with the showrooms, and then adding the EOS offering on top of the one we had. That in conjunction with the sauna sales, amazingly good numbers over there. Rest of the European marketplace following the same pattern. Russia, altogether, even though it's been a tough journey, and keeping in mind the devaluation of the Russian ruble, and I think the end of the year, it's finished with 90 something, and we started with something clearly different than that number. Altogether with Harvia and EOS, a good job done and on a steady growth. Keeping that in mind, we also been doing consolidation in our distribution platform and in the Harvia distribution platform, we've been going down from three distributors into two, and gradually by January, we are ready for the two distributors on the Harvia. We've been skipping and focusing more on that one. North America, excellent job on the heaters and componentry. That topped with the performance of Almost Heaven Saunas, you get the nice numbers. I think here we've been challenged a bit with the capacity limitations. Some of you may be monitoring how our web store has been able or not able to offer products for the consumers. We've been unfortunately needing to limit the availability of the merchandise. When we get the machinery up and running, we can come back to business in full speed. The other markets, mainly comprising of the Asia, Arabic countries, and the related markets. That's where we book, unfortunately, a bit of a negative development. Full year picture, roughly following the same pattern, and I think same phenomenon. Will not dive into deeper details. Will maybe raise up the excellent American performance and then the solid performers on the Central Europe with both EOS team and Harvia and Sentiotec team doing a good job. Oh, this is the last quarter on the same phenomenon. Sauna heaters clearly leading the pack, and then biggest upside on this respect. Sauna rooms, even though we've been delivering with the full speed, still not able to catch up, but that's where we have the most limitations. Having said that, maybe during last quarter, bit of challenges in supply of the raw materials, and that's why we also been having a bit of limitations of supply. The full year on the categories, roughly the same pattern in that respect. Altogether, a nice journey and going close to EUR 110 million in that respect and taking us to the shared number one position or to number one position in the industry. On the profile of the revenue on the quarterly base, I think it's good to remember that during the first quarter of this year, we did not have the EOS offering and team on board. We still believe that the quarter number one and the quarter number four are the strongest for the sauna and spa market. We have two bit of a mediocre quarters in between. The same applies roughly for the profitability profile of the company. I think one could expect that the pattern would follow. When we become more international, the pattern will slightly change and will be more evenly spread, but as we speak, that's roughly the profile going forward. Maybe just a recap on what we are doing, and our mission is the healing with the heat. Our ultimate mission is to offer people the opportunity to experience sauna and to experience the healing power of the heat. That's what we are doing day in, day out. I think our peers been doing the same. As a totality, the sauna and spa industry is enjoying a fairly favorable trend. When you combine that to the physical well-being results, I think that's a good favorable thing going forward. On top of that, we have the mental health, which are a bit more difficult to describe and put into a medical journal. The ones who've been experiencing it know it, and the word of mouth is spreading the word quite fast on the markets. We are the ones who are enjoying that. I think on the traditional sauna, Harvia is stronger than ever. Still on the infrared, we are not exactly where we would like to be, and we still have a lot of room to improve, and the same applies for steam. Harvia together with EOS are rather good and okay for the residential steam. For the professional steam, we still have work to do, and especially when considering the full complete project work for the steam, we have a lot to do on that arena. Will not do a major deviation on our strategic paths with the profitable growth. We'll continue focused on increasing the value of the average purchase. I think the sign of success on this one is the sale of the complete sauna rooms. That's what we've been doing. As also on the visual, together with the EOS and the team in Central Europe, we've been able to penetrate into more premium category to get into a big ticket projects. On the geography, we'll continue increasing our presence in North America, Canada included. The Asian market, when the pandemic is gradually evading, and we all get vaccinated, we can go back to traveling, meeting with the customers. I feel very sure that we can do good improvements over there. Even though Australia, Oceania, not a big marketplace, still see an opportunity over there. With the productivity improvement and with the capacity enhancement over there, I think we have a good game plan how to take us on the next level over there. Next I will pass to Ari. Thank you, and I will come back when we entertain the questions. Ari, floor is yours. Yeah, thanks. You certainly noticed already from the previous pictures that actually the growth accelerated a little during Q4. Q4 is really the strongest quarter for Central Europe, as we see from the German figures and other European figures, and also in North America. Business there is pretty profitable, and that we can see also in the profitability of Q4 in financials. The adjusted EBITDA improved actually 5% compared to last year, from 24%-28% roughly during Q4, and it improved also the complete year quite much. You see we also exceeded our financial targets in the adjusted operating profit, and that's nice. That reflects, of course, then to the earnings per share and many other key figures. What, as a financial guy, I'm especially delighted is that we were able to improve our cash flow. Actually, the operative free cash flow or cash conversion rate, it was quite exactly 100% of the EBITDA. We were able to finance actually our investments during 2020 out of the reduction of the relative net working capital. The net working capital management went pretty well actually during that year. That helped also us to improve the cash situation towards the end of the year. Some other key figures, the adjusted return on capital employed, it's really high, 73%. One has to remember that we have deducted the goodwill out of the employed capital. That's the way how we calculate it, but that figure has been improving a lot during 2020. We have got a lot of new colleagues from roughly 400 persons, over 600 during the year. Biggest part of the increase comes from EOS Group, but we had also a lot of recruitments, especially in Finland and the heater production. I was one page late. Let's go to the financial deeper. The net debt was able to go down quite clearly during the year, and the leverage actually went under our long-term targets. The targets are between 1.5- 2.5. We are at 1.1, and that enables of course us the investments to be paid out of the cash flow and pay also quite nicely the dividends, which I come back to a bit later. On the right side picture, you see our net financial costs. Actually, the dotted line is the level of costs what we have quarterly, cash-based. That what we actually get in and pay out interests and the other deviations from that cash-based interest cost, they are more or less IFRS-related valuations and things of financial instruments or discounting interests for the redemption liability of minority and so forth. More the calculatory items, but the dotted line shows actually what we are paying out and what we are getting in. That's just for analysts if they follow this. Okay. We increased the level of investments at the end of the year, as Tapio already told. In some machinery investments, we are still a bit late that we can increase more the capacity what we've been able to do now. This a bit higher level of investments goes on now in the beginning of 2021 and throughout the whole year. Actually, the biggest current investment we just decided is this new factory building in U.S., where we have 2.5 x as much space as in our current facilities, which have been also improved lately with machinery and repairs. This gives us much more options and opportunities to grow in future. Probably you can add. Not much to add, but I think our team in the U.S. have done a good job. We were very lucky to find a premise very close to the existing factory in Renick. This is roughly 15 mi apart. The same team we have over there can potentially move in this one. The building is in a excellent shape. I don't know whether we can disclose, but it's an ex-ABB building, so it's in a very good shape. It's an all-in-one level, and the flooring and everything is perfect. I think in the first go, and if you take a bit of a step back in the history, when we acquired Almost Heaven Saunas, they were on the 3,000-5,000 saunas on a given year. We now lifted up the capacity roughly to 7,500. With the new premise, with the same machinery, bit of a new layout, a couple of additional machinery, can go 10,000 and beyond. We still have a bit of a room to expand with rather marginal capital expenditure and potentially doubling the capacity of the U.S. facility. I think also at the same time, we are planning to have a bit of a more versatile offering for the U.S. marketplace. As we are not fully into the infrared business as we speak, we are considering options how to potentially do that, and then also steam some ideas and plans for that going forward. A good catch, and this is still subject to due diligence, and I think the only one which could potentially kill is the environmental, but we have the first results. It looks good. The closing of this investment, final closing, is planned end of April, beginning of May. We will move part of the production to this building during the summertime to be prepared then for the next year main season in September and beyond. The Harvia's shareholder situation. The share of the nominal registered or non-Finnish shareholders is 45%. We have our anchor shareholder from the end of 2019, Onvest Oy, with 12.3%. We have got plenty of new household and private shareholders, as you see from the picture on the right side. Especially during Q4, we have got lot of new members in the shareholder club, so to say. Thank you for joining us. This has delighted us a lot. The financial targets, as we publish them, they are still the same, but this 5% is excluding, of course, acquisitions and special situations, advanced consumption and so forth. In the long term, our market intelligence says that global sauna market may grow + 5% annually, or something like that. Profitability, we target, of course, over 20% EBIT level. Now we reached and exceeded it quite nicely. Leverage that has been discussed already earlier, we try to keep somewhere in between 1.5-2.5, but we can also be sometime outside of that range and when making some acquisitions or whatever investments. Dividend policy has been that we target at least 60% of the group net income in total to be paid out as dividends annually, and we pay dividends twice a year, the total amount. The dividend proposal of our board of directors is really so that we have now the base dividend, EUR 0.39 per share, paid in two installments, and then an additional Harvia 70-year celebration dividend of EUR 0.12. In total, we, if accepted by the annual general meeting, we will pay out EUR 0.51 per share. That's EUR 9.6 million in total, roughly, and it is exactly 60% of the group net results. That is the board proposal currently. If you have any questions, we are ready to answer. Please, floor is yours. Ladies and gentlemen, if you have a question for the speakers, please press zero one on your telephone keypad. Our first question is from Maria Wikström of Danske Bank. Please go ahead. Your line is open. Perfect, congratulations, gentlemen, for a very good quarter. Do you hear me? Yes. Yeah. Very well. Loud and clear. Yeah, okay, perfect. Just checking in. Yeah, this might be difficult for you as well to answer, but maybe if I start that, if you could describe a little bit on the trends in the heater market in the beginning of the year. Have the same trends that you saw in Q4 continued in the beginning of the Q1? If I expand the question a bit, and you said that you've seen that the demand, especially in Finland, Scandinavia, and Central Europe, have been growing partly as people have been investing in their homes during this COVID times. How do you see the market to normalize? Or how we should look at the demand pattern during 2021? Thank you, Maria. Maybe on the first one on the trends, I think we don't see or experience any change on the trends in that respect, nor on the heaters, nor on the saunas in all of the categories we represent, roughly continues on the same. For the tricky part of the question is how the demand will be shaping in the coming three to five years. I think no one knows exactly how that's going to play out. I think the analogy and psychology when people are upgrading their homes, when they upgrade their second homes or they acquire new homes or new holiday homes, usually most of the people, it's a big investment. They do it at the one go, maybe even go to the bank and take a mortgage. For the rest, they pay out of pocket or at least try to finance on a sustainable way. The time for the things, when they go to from a kitchen to the living room and to the bathroom, will take time, and I think it's a multi-year program in that respect. Don't expect any fast change in that respect. Travel will come back. When people are traveling, they will maybe travel more regional and even more domestic. That's why the hotel and accommodation industry has been prepping up their capabilities of entertaining people. I think that will continue. I think the sauna trend and the health and wellbeing trend in general will be helping not only Harvia, but everyone in the industry a bit. What is the totality and the total impact, all of these, very difficult to say. I don't foresee any sudden changes in that respect. This helps even though it's not. Thank you. Not a complete answer. I'd like to touch on the transportation situation from China. I think what we have heard, that there has been some limitations on the available capacity on the sea freight from China now around the Chinese New Year. What is the situation on the availability? Just if I look at the screen prices, they have been skyrocketing for the sea freight. If I understood correctly, some of the low-price heaters are transported from the Chinese factory. How do you see this affecting the profitability, and are you able to increase the pricing of the products that are coming from the Chinese factory? I think your analysis on the current status with the logistics and sea freights is absolutely correct, and the market is really in turmoil. We are not talking about increases with percentages. They are with multiples, and the multiples are three to six times, depending on the case, and the availability is still not guaranteed even though one would be prepared to pay a sky-high price. We are in a fairly good sustainable situation. Most of the ones we are exporting out of China, customers are paying for the freight, and the ones where customer is not paying for the freight, we've been able to adjust and will be able to adjust the prices going forward. We expect the situation to last for some time, maybe even still a bit after the Chinese New Year. I think everyone is, first of all, forecasting and also hoping that to be settling down. If not, then I think we have the ability to act on the pricing in that respect. Don't expect any major hiccup or hurts into profitability for this reason. Thank you. My final question is, you've been executing very successfully on the M&A strategy. Lately, we've seen private equity interested also in the sauna assets, which I would read that it's quite likely that some of the prices of the acquired assets will go up. At the same time, you went with an organic bath in the North America, expanding the factory capacity. If you could discuss a little bit that, has the dynamic change and has the organic growth options has become more attractive if there are more parties interested in the available sauna assets that might come to the market? Very good question. Maybe first on the organic growth and investing on that. I think that's in a way a necessity. We've been facing a demand, which with the current asset base, we cannot fully cope with. We need to be able to comply with the increased demand, and that's why we've taken that step. That's an area we know how to make it, we know how to produce, how to market the merchandise, our offering. That's a safe choice. I think as Ari indicated on the CapEx, for 2021, we'll most likely see a bit of a unusual higher number compared to the historical capital needs for the company because the U.S. investment is not the only one we have in the plans. I think that's all good. On the M&A activity, I think we also been monitoring and having thumb on the pulse. Clearly more activity than in the past. Private equity has been taken actively part into the game. They acquired KLAFS, a Dutch-based private equity, Egeria bought both of them. Don't know the exact valuation, but know roughly, and they paid a fair, good price for that. Also in the smaller part, which is maybe not exactly linked with our industry, but in Germany, 3i bought one asset, which is basically on the active backyard living type of a region. They also had an add-on with a Scandinavian player completing the same active backyard living. Some of that is sauna area where we are supplier for the heaters and equipment. We've been monitoring the assets. Good quality assets never go on a fire sale. They're going to be having a fair valuation. I think still the valuations are so that we have ability to act if and when a suitable asset is in the radar screen. Yeah, we are really active in M&A if needed. One thing we have to point out also that Harvia's long-term competitiveness and profitability level doesn't come suddenly. It has taken really years and centuries time to develop this level of business model and so forth. I personally at least don't think that it's so very easy to copy that so quickly or to compete with a similar kind of business in short term. I don't know, Maria, whether we were able to answer your question, but at least we tried. Yes. Thank you so much. Just to remind you, if you want to ask a question, you'll have to press zero one on your telephone keypad. There'll be a brief pause while we register any further questions. We have another question from Maria Wikström of Danske Bank. Please go ahead. Yes. Okay, one more if there wasn't anybody else on the queue, which is on the very good profitability that you reach throughout the year and especially now in the final quarter. Would you say that the biggest driver for the high profitability is the volume? You have a good leverage on the system, or how would you describe the driver in the profitability? I think for sure volume helps because that gives you a good overhead recovery. On the other hand, what we've been doing in the profitability improvement, I think we can tick most of the boxes in that respect, that we've been able to do the upselling, we've been able to do the upgrading, we've been able to command a decent price from the marketplace. It's an outcome of multiple features in that respect, and not only the volume. Yeah, we actively really improve the profitability all the time, the overall effectiveness, not only in production, but also in supply chain and in our overheads. It's a continuous process. I think one thing most of you may remember who've been a longer term with us, we always been stating that the profitability in the heaters and componentry is clearly higher and in a different league than the sauna. During the journey, we've been also learning how to make saunas more profitable. They are not still yet equally profitable, but they've taken a good step forward. Perfect. If I have a little more time, I'd like to go back to the demand trends in the Scandinavia segment, as now it seems that you have a setup in place that enables you to grow in Scandinavia. That hasn't been your home turf, but you have been taking market share, how I at least see it at the moment. Can you walk us through a bit of the steps, how you can grow the business further from here? In regarding Scandinavia? Yes. I think we've been able to first in the history, if you take two years back, Harvia was mainly in a retail channel, nothing else. Now we've been in the entry level. We've been, first of all, expanding our presence in the retail channel. We have now multiple partners, and then we've been able to upgrade the offering. We still don't have the super premium heaters available, but we have the medium and on the higher price point heaters and equipment and accessories available. Also in terms of accessories, our current coverage of the accessories in Scandinavia is way better than in the Finnish marketplace. Also the demand for the heater-related accessories for the Scandinavia marketplace is clearly bigger and more important for the market than in Finland. On top of the retail, which is more to the residential customers, as well as on the small father, son, and one type of installers and builders, we've been able to open the professional channel. The professional channel, still not a lion's share of the business, but gradually we've been able to creep in. We've been able to offer equipment and solutions which are comparable, maybe even better than the alternative, which is the local player, and gradually gaining share and exposure within the community. I think we continue doing that, and I think we have a very good inroad into the Scandinavia marketplace. Still not a single heater sold from EOS, and going forward, we still have plans to introduce EOS for the Scandinavia marketplace as well. We feel that's going to be a fair competition with the local leading brand on the marketplace. Perfect. Then you touch upon the EOS expansion. Is there any news regarding EOS being sold also in North America? We are still in the approval process, but we are gradually getting models in. As I said, when we acquired the company, it's a year to a year and a half before you get the first approvals. Now we are halfway the journey. In between, we've been able to have our own members into the standardization committee, so we have a clearly better insight what to do, how to do it, but still it not be speeding up the process. I think within half a year, nine months, we're going to see something on that area. Even if we don't disclose the figures of separate companies, I have to say that we are really happy to see that the basic business of EOS is growing also currently very strongly. Perfect. Thank you so much, gentlemen. I think I have drained all my questions now. Do we have any. Thank you, Maria. There are no further questions at this time, so I'll hand back over to our speakers. [audio distortion] We have two questions from Harri Wallenius from Nordea. How much sales have you missed due to production capacity limitations? The question was. How much production. Sales have you missed due to production capacity limitations? Very difficult question. I'm afraid I cannot fully entertain the magnitude. As we've been also mitigating, especially for the U.S., we've been stepping away from any special offers. We've been reducing the number of campaigns. Central Europe, we've been collecting orders. Our order books are thicker than normally. How much we've been missing sales, I have to say I don't know in detail. I haven't seen any cancellations of the orders. No. Just the delivery times, they have prolonged. Yeah. Other one from Harri Wallenius. How has the cold Q1 2021 affected sales? Have you experienced a lot of excess demand due to the favorable conditions? Oh, that's a good one. I think we also been having a bit of an understanding when it's cold, it's sauna time. We are in a global business, and even though it's cold over here, we may foresee a bit of a incremental demand and usage. I think the frequency of using sauna is always good because the more often you use, it's a wear and tear, and you need to replace it, but it doesn't have an impact immediately. It's going to come during the time. Thanks. Several questions from Petri Kajaani from Inderes. You mentioned that sauna and spa market M&A activity has increased during 2020. Could you summarize the most important deals, and did you participate in some negotiations that didn't go through? I think the ones we've been intimately aware and I know, I tried to mention the one in Germany. The group is by the name of GartenHaus. I think they were acquired by 3i. Polhus was the add-on 3i bought from Scandinavian and Baltic owners. They are somewhat reflected in the sauna spa industry. For the both of the companies, we are supplying equipment and componentry. KLAFS, definitely one of the big names in the industry, was openly for sale. We had a look on the numbers. At the end of the day, it ended up with the Dutch private equity. Don't know, they did not disclose the final valuation, but I bet the new owners paid a good price for that. The previous owner should be happy. We've been announcing already a few quarters in a row that we are participating actively in M&A when there is an opportunity. Due to that, we get also interesting opportunities offered from the market. We have some feeling what's going on there all the time. If there is a perfect fit to our strategy, we will negotiate seriously, but it really has to fit to our way of doing the business. Thank you. Another from Petri Kajaani. The sauna and spa market is growing fast, and profits are at very high level, especially Harvia's. Do you see this good performance and market growth attracting new competitors to market since the returns on invested capital seem to be way beyond normal levels? I think Ari tried to already entertain this a bit, and if it would be that easy, we would see a lot of new competitors coming into the business. We don't experience that. For sure, there are always new companies coming in, mainly due to the current owners aging and trying to find new partners who can take the company on the next journey, but not really new. Within the industry, this is very conservative industry, and I think we've been experiencing that in the steam. To get into the steam business, we have everything it takes, but still to build the reputation, to build the knowledge and know-how of the plumbers and the electricians who've been installing this and that for the past 20+ years, not too easy to come into the market. Are the high freight and container prices putting downward pressure on your profitability at the moment? Does this have material effect on the group level profitability? Like I tried to answer, Maria, we feel and we acknowledge, but we've been able to adjust most of that. If it's further escalating, we still have ability to adjust and take that into account. Maybe some roundings, but not in a big way at all. Of course, it causes extra work for our sourcing and logistics. On the other hand, what we see and hear, the other companies may have also in this business the similar challenges in that respect. You mentioned the strong order backlog. Could you give us more information about that? From which product categories and geographical areas is this order backlog from? How many weeks or months forward do you see delivering the order backlog? Luckily, I don't have the detailed information, but I think in the past, Harvia used to have a very short order backlog, roughly two to three weeks. We are now clearly beyond that, and it applies for all of the markets, all of the categories, with the exception of steam, where for obvious reasons, the demand is not hiking as some of the other areas. It's a big change in that respect, but I cannot give you exact number of weeks. I think the only difference on the categories is that steam is less demand compared to the other categories. All the markets roughly the same. Even if we have had prolonged delivery times, we've been able to keep up the customer satisfaction to a certain extent, at least. Somehow people accept it that we have to deliver a bit slower. Yeah, that was maybe a bit of an understatement because our customers are rather happy because we have a good dialogue. I think everyone who's dealing with this type of a category in the bathroom industry, in the kitchen industry, in sauna and spa especially, knows that the lead times are longer than they used to be. They are prepared, and also in the professional channel, they are now used to the things that you don't get it next Friday, but you need to pre-book that two to three months in advance, then you can guarantee a full delivery. Still questions from Petri. You are a very strong player in your home markets here in Nordics, Russia, Central Europe, et cetera. Could you describe the geographical white spots where you still see room for Harvia to penetrate into totally new markets? Is there material addressable markets where you still aren't present? Maybe to start with the North America, both on the U.S.A. and Canada, even though we are a strong player in the heaters and componentry with the Almost Heaven Saunas, we are still on the early stages of the sauna journey in that respect. Even though in our web pages, you may find a bit of an infrared, we are really not a player in the infrared in the U.S. at all. The U.S. team, we are non-existing on that one. In the Canadian marketplace, yes, we have a bit better grip on the professional marketplace, but not to the extent we would like to have. In the Canadian marketplace, we are almost completely out of the residential reach, and that's something we can improve. The rest of the Americas, sauna is not still a big phenomenon, but it's gradually cascading down on the Latin America. We are not there in big way. The Asian markets, we still have a lot to do over there. Currently it's not easy to address because traveling, not possible, and meeting with people, not possible. Thank you. About the infrared market. How big currently is the infrared market of the total sauna and spa market? How fast is it growing and who are the top players there? Very difficult question, and if I would have exact information, I would definitely share it. Lately, we've been monitoring the market quite closely and I know some of the players in more detail. I think at least some of the U.S. players, the magnitude was clearly bigger than we expected. When you see the current health and wellbeing trend in the U.S., and the infrared is usually easy to install, easy to use, and the health benefits are quite, I would say, good ones to be communicated. They've been growing clearly faster or at pace of the traditional sauna, and they are gaining share in the North America. They also gradually gaining share in the Central Europe. The Asian situation, I don't know in full detail. I need to check in more detail. In your Q3 webcast, you said that the yearly CapEx, capital expenditures, should land around two and EUR 3.5 million. Now you seem to put the metal to the metal even faster. Is this EUR 2 million- EUR 3.5 million assumption still valid? I would say that with the current foreseeable demand, we unfortunately or fortunately need to go beyond on that one. We have this EUR 200 change million investment in the U.S. That's in a way somewhat incremental to the normal. I think we still have one or two more to go. For this 2021, we're going to be way beyond that. I cannot give you an exact number, but pick a number between five and seven, and that's roughly where we could be. Thank you. Then to Anders Knudsen from SEB. With the brisk growth you have achieved in 2020, what does that mean for aftermarket revenue in the coming years? How much of your sales is done via web store? Our own web store basically does very little in the European marketplace, almost next to nothing. With our partners, we are available on multiple web stores, so that becomes a decent number. In the U.S., our own web store has done a great job, and I think together with the direct sales, is approaching half of the American sales. Then what was the other part of the question? What does your growth in 2020 mean for aftermarket revenue in the coming years? That's a good question. One can say that on the heater and equipment sales, roughly 80% is coming from a replacement. When we are now having a lot of new installations long term, the replacement market will be increasing, and the bigger the install base is, the better for the business. Usually in the industry, especially in the case of Harvia, our equipment when it's been fully serviced, usually is going to be exchanged into a new Harvia, and then most likely with better features and a higher value. In that respect should be good. Good. A question from Kai Alexander from JM Finn. My question is this. When will you start marketing Harvia sauna as health equipment? We have been questioning your sales staff and distributors this year, and they do not know enough about the impact of sauna on longevity, specifically the heat shock protein response. We feel that the company is missing a huge growth driver here. Are there plans for a considerable marketing or educational campaign in these regards. Excellent question. I think you are spot on on the issue. We've been gradually starting to educate ourselves, our sales team, and now we had the 70 years anniversary. We didn't have a big party and celebration, but what we did, we organized an open webinar for everyone who's interested. We had two excellent professors, one medical, one a neuroscientist and a brain scientist, explaining and teaching us how to explain about the sauna benefits, both on the physical medical benefits as well as on the mental well-being parts. Gradually we are learning. I think two weeks ago, we organized our own kickoff, and we were practicing also how to deliver the message to our partners and partners' partner. Gradually we are getting there, but we are far from being experts on this arena. An excellent question. We'll get there. Bear with us. Thank you. Question from Raine Lahtinen from the armchairtrader.com. Do you have any activity in the U.K. or plans? We have quite a good business for the U.K. marketplace. We have a number of partners for the Harvia offering, and then we have a different set of partners for the EOS offering over there. For sure we have plans, and then I think the plans will gradually get implemented. Raine Lahtinen also asked about M&A activity in 2021. I think no major change compared to the latter half of the 2020. In that respect, market remains somewhat active. Good. Question from Timo. EOS Group has not previously sold products to U.S.A. Have they now been sold through Harvia there? What does the future look like for premium heaters in the U.S.? On the first half of the question, not have been sold yet. We are still having pending for the approvals to be sold in the U.S. We're going to use the Harvia platform as a logistic center, but then we will have a separate set of distributors for the EOS equipment for the U.S. marketplace. It's still too early to say exactly how we're going to be organizing the distribution in the U.S. The second part of the question was about the premium heaters. Oh, premium heaters. Yeah. There are more and more public spas in the U.S., and in that respect, we feel that the EOS offering is a good fit for the American marketplace. U.S. marketplace is even more maybe polarized. We currently entertain and offer good products for the entry part of the market through Almost Heaven Saunas. For the premium residential marketplace, we don't have a good offering, and I think in that respect, EOS is filling a gap over there. Together with the premium end of Harvia, I think we have a good match with the market needs. For the final questions, Jonas Liegl from Lupus alpha asked more about the U.S. expansion plans. "What will be the new sales capacity with the new factory in the U.S., and could you share the required investments, and by when you expect start of production? On the new facility, now when we are closing first the deal, and then we'll organize the transition of the most of the equipment into the new building. We are commencing operations on the fall of this year. I tried to explain, we started with 3,000 - 4,000, now ramping up to 7,500. With the new facility, 10,000 and beyond. With the modest CapEx needs, we can basically potentially double the capacity of the new factory in that respect. Thank you. These were all the questions from the message board. Hey, thank you for excellent questions. Thanks for being on board. I wish you an excellent day. All the best. Take care. Bye now. Okay. Bye.