Ladies and gentlemen, good morning, and welcome to Huhtamäki's Q4 and Full Year 2020 Results Presentation. My name is Calle Loikkanen, and I'm Head of Investor Relations. Huhtamäki's President and Chief Executive Officer, Charles Héaulmé, and Chief Financial Officer, Thomas Geust, will today walk us through the highlights and results of the quarter and the full year. After the presentation, we will, as always, end with a Q&A session. Without any further introductions, let's begin the presentation. Let me hand over to Charles. Thank you, Calle. Good morning to all of you, welcome to our 2020 results presentation that I will take together with Thomas. We will start with an executive summary of the basically key messages we want to leave with you regarding our performance in the fourth quarter of 2020 and most likely on the entire year 2020. First of all, reiterating something that has come through pretty clearly through the different quarters of 2020 is that we are continuing to deliver a solid performance despite the COVID-19 pandemic and the resulting economic crisis. What do we mean with this is that we are delivering a solid full-year sales performance. We are continuing to improve our profit, and we are delivering a strong cash flow, which enables us to continue investing, particularly for growth. Regarding the consumption and the market evolution, we would like to convey the message that we are seeing a gradual recovery on the short-term demand. This has continued during the fourth quarter. However, there is still a pretty important volatility in the market and particularly on the food service market channel. We see as well, in the market, a continued strong demand for fiber packaging as well as retail tableware, which have to do with the increased home consumption. This has been the case throughout the entire year 2020. Last message is that we have linked to this situation of 2020, as well as the more structural changes of the consumption we have embarked on the transformation journey, which is very much in line with our long-term growth ambition, but certainly accelerated by the year 2020, focusing on improving our competitiveness, innovation, and sustainability in order to deliver growth for the future. Let's look first now at our operating environment, a few reflections on the year 2020, and trying to take an holistic view of our performance in the context. Summarizing that the year 2020 has been basically a year of external disruption and internal transformation for us. With external disruption, without going to too much granularity, it's obvious we can't avoid say that there has been a strong disruption of the macroeconomy linked to the COVID-19 crisis. At the same time, there has been continued geopolitical tensions, creating disruptions for the business in 2020. Second is the sustainability legislative agenda that is gaining momentum across the world, but particularly in the EU. That creates from one side, some uncertainty, and at the same time, it creates as well lots of opportunities, which, of course, is very important for us to consider trying to anticipate and preempt. Thirdly, the consumption is shifting, and if I would retain very much only one aspect, which is about 2020, the evolution of the consumption at home that is very clearly driven by the crisis itself, with some underlying structural shifts going forward, which have to do with convenience, but as well, the innovation, or at least the requirement for more innovation in circular products. Now, in this context, what have we done? That's what we call the internal transformation. First of all, we have renewed our long-term growth strategy. We have established our 2030 Strategy. We have presented it to the community early in the year and rolled out this strategy internally. This strategy is focused on four pillars: sustainability, digitalization, innovation, and high performance for growth. This being said, according to the consumption shift that we are seeing, there is an adaptation necessary on our product portfolio due to these consumption changes and the increased focus on sustainability. At the same time, we have been, towards the end of 2020, preparing for what we would call the post-COVID, the new normal, and that drives actions to improve competitiveness as well as investments for expansion and automation. Important to say that in all this context, together with our renewed long-term strategy, we have renewed our purpose that is inspiring our day-to-day business, which is protecting food, people, and the planet. A very inspiring long-term perspective on the role and responsibility that we see as a packaging leader in the world. The context of 2020, obviously with the pandemic, has been a very strong pressure test for our company, for the resilience of our business and our portfolio, but for the resilience as well of our organization and management. We're happy to say that during the year 2020, our industry, and particularly the fact that we are in food packaging, has been recognized across the entire world as what is called an essential industry. Therefore, this has allowed that, together with the commitment of our organization, this has allowed to maintain our operations open for most of the year. When we retroactively think and calculate what does that mean? That means that our factories have been actually open and running 99% of the time. It doesn't mean that we've been able to run at 99% of the capacity all the time, because, of course, there has been some manning challenges in different parts of the world, but at least the factories were open most of the time to some specific exceptions. We have constantly worked on protecting the health and safety of our employees. This drives me to speak about now the business performance in 2020, starting obviously with the sales of the quarter four, where our net sales reported says have been declining by 7% in Q4 2020 versus Q4 2019. It's important to understand that the main part of this decline is actually the currency fluctuations, which have been very negative, you probably remember in Q3, but even more negative in Q4 with an impact of - 6%. The rest being an upside of 1% on the acquisitions that we concluded at the end of 2019 and beginning of 2020, meaning that the comparable net sales growth for Q4 were - 2%. All this put in perspective of the full year means a net sales reported of - 3% versus 2019 at EUR 3.3 billion versus EUR 3.4 billion last year, with, again, this pretty substantial negative impact from the currency with a - 3%. When we break down by businesses, by reported business segments, you can see that for the food service, Europe, Asia, Oceania, we are reporting a - 7% in Q4 and - 10% overall in 2020. That's comparable growth. In North America, we are reporting what had been pretty much anticipated, a slight decline in the fourth quarter of minus 2%. We'll come back to the reasons for this decline, which is not in line with the very strong performance of Q3. All in all, in the year 2020 full year, it's a comparable growth of 1%, which is a very good result in the context. Flexible packaging, overall, a 1% + comparable growth for the full year. Fiber packaging with a strong 9% comparable growth for the full year. We will come now into further detail on each of the business segment for us to explain you the granularity of the performance of each of our businesses. Before that, looking at the P&L at global level, it's fair to say that we are continuing to improve our margins at adjusted EBIT level, where in Q4, we are at a 9.0% EBIT margin level, adjusted, sorry, EBIT margin level, and on a full year basis, 9.1%. All in all, with a - 3% net sales reported decline, we are increasing actually our adjusted EBIT in Euro terms by + 3%. The adjusted EPS is very much in line with the EBIT, growing by 4% from EUR 1.88 last year to EUR 1.95, and that despite the currency headwinds. As you see on the bottom line of the capital expenditures, so investments have been up to EUR 223 million, which is an extremely good level, showing that we are confident with our future, and we have lots of business expansion as well as automation investments going on for the benefit of the next periods. Looking now into, still at global level, what we committed to last quarter to inform you on a regular basis amount, which is our sustainability performance. We started in Q3 to report on sustainability performance, and we believe it is extremely important as we have put sustainability at the center of our long-term strategy. We believe it's important to maintain a strong transparency as well as monitoring the progress of our performance. I may not go through all the different indicators, but maybe give a little bit of explanation around some important evolutions, positive or less positive. If we start with the renewable or recycled material, which is slightly declining from last year's level of 67.6% to 67.3%. It's basically flat. However, when we have an ambition to go to 80% in 2030, obviously, this is not taking off, and the main reason is basically a temporary reason linked to the particular mix of the year 2020, where the food service business has been strongly affected. As you clearly understand, food service business is mainly paper board-based, which is renewable material, and therefore that impacts that level. Even though it's a very small number with 3.8% of renewable electricity, we're very pleased with it. Why? Because we started from zero, and taking off is the most difficult part. It's about understanding what to do about it, how to move the needle, and put the first actions in place. First actions being linked to power purchase agreements on a long-term basis, but as well local activities like generating electricity from solar panels on the roof of some of our factories, and we will go on deploying such activities. We have then the non-hazardous waste recycling, which as well is going down, and that result is very much a temporary effect from the ban, from the rejection from China back at the beginning of 2020, not accepting any more the import of waste from the rest of the world. That is, of course, affecting our capability to recycle. It's only, let's say, a hurdle on our way towards 90% in 2030. Maybe good to mention a last point, because I mentioned before that health and safety of our employees is absolutely our top priority, and has remained so in the year 2020 in particular. We have been improving a lot our safety records with a strong reduction of our accidents, and that is visible in the LTI ratio that we are reporting. Going now on the business side into the granularity by business segment before we look into the financials at group level. Starting with food service, I would say that, and mentioned already that the COVID-19 crisis has continued to have a significant negative impact on the demand during the fourth quarter of 2020 across basically all markets in a pretty consistent manner. Accordingly, the segment's adjusted EBIT has decreased due to lower volume, lower asset utilization linked to this lower demand. You understand, I started in the introduction mentioning that we are actually engaging in a transformation project, which is very much about food service, which resulted in the quarter four to record an IAC of EUR 10 million linked to the adaptation of our capacity to what we are projecting will be the future market demand. At the same time as we are investing in new products and industrialization and investment for growth in different markets in the world, in Asia and in Europe, for instance. Moving on to North America, where we have had a strong performance throughout the year. This has been a combined picture. First of all, it's a negative picture like in the rest of the world on food service, where our food service business has been impacted by the COVID-19, maybe to a lesser extent than in the rest of the world because of the very strong convenience culture in the U.S. with very strong food delivery demand as well as a drive-thru channel that is slightly compensating the food service direct impact. The good news are coming as during the rest of the year from the retail tableware, as well as the consumer goods products, but retail tableware is really boosted. We were coming into the 2019, if you remember, from a strong growth already. The market is growing. We are growing with the market, but in addition, and we are growing very nicely with our top brand, Chinet. At the same time, the home consumption, which has been increased by the crisis in 2020, is of course boosting the demand. The earnings were supported by these additional volumes as well as the favorable mix that it represents, as well as the continuation of a good market conditions on commodity and distribution cost during the year 2020. Flexible packaging has seen, let's say, two different perspectives. From one side, we have seen a pretty strong, pretty good demand in Europe, linked to the increased home consumption, therefore more demand for food on the shelf and prepacked products. At the same time, we have seen an increased volatility, particularly in Q4, actually, a strong volatility of the demand in India and in Middle East. In Q4, like in the rest of the year, the growth has been strongest in Europe, and we have seen a decrease of the demand in India. Linking this to an unfavorable product mix for Huhtamäki in India. That leads to an EBIT margin overall in the full year, which is at 7.7%. In slight reduction versus last year, very much linked to all the cost that has been into our structure and into even our labor cost, particularly in India during the crisis, where we could not have any furlough due to local legislation. A temporary, let's say, hurdle in our profitability here in Flexible Packaging. Finishing up with Fiber Packaging, where we have had a strong performance throughout the year. We are coming with an underlying market growth, which has been boosted by the home consumption during the year 2020. There's been a strong demand for eggs and therefore for eggs packaging, particularly in Europe, but as well across most geographies. Here the name of the game is capacity. We have been growing very nicely at 9% for the full year, and the earnings have been as well on the high side with reaching full year a good 12%. As I said, name of the game now is capacity and capacity utilization. We are investing further in this fiber business that is very promising. With this, I will hand over now to Thomas, our Chief Financial Officer, who will take you through more details on the financials. Thank you, Charles. Going into the first slide here, the detailed profit and loss, we can see that what Charles already highlighted, a drop in sales development. Looking at it, though, from a overall perspective, we can conclude that it's to a large extent caused by the accelerating currency impact. The strengthening EUR versus other currencies. For the full year, the organic comparable growth and acquisitions are leveling out. Looking at the profit development, the favorable trend of accelerating EBIT above net sales growth. Here we can see that it slowed down in the quarter. Here again, we also have a currency impact coming from the fact that some of the good, better margin units have a bigger currency impact. Then we also need to remember the fact that North America's contribution in Q4 was not as buoyant as we saw in 2019. I would also like to highlight that the tax rate remains on the same level as previous years, so on 23%. Net financial items through the year on same competitive level as previous year. That ending up in a adjusted EPS of EUR 1.95 versus EUR 1.88 in previous year. From the reported numbers, you will see that the reported EPS is EUR 1.69, including then IAC items. The IAC items for guidance impact approximately 1% on gross margin level negative. More details around the currencies. In the currencies, you can see the accelerating trend towards the end of the year. If we compare the closing rates of the year, big, important currencies like USD, Indian Rupee, and the Russian Ruble have clearly dropped towards against the euro. You can see there that the impact on our profit and loss on the left side is not as significant. Taking USD as an example, average rates down approximately 2% versus average rate in 2019. However, if you look on closing rates, it's down 10%. This obviously indicating that if continued, our profit and loss will see continued negative translation in the profit and loss. Net debt EBITDA continued to improve. We are on 1.8 net debt EBITDA in the fourth quarter versus two in 2019. An improvement in our solidity. The covenant level 3.5 on frozen GAAP. However, with the new RCF, we are at 3.75. Highlighting also the net debt as such, EUR 867 million versus EUR 904 in previous year, and a gearing of 0.64 versus 0.63. Lease liabilities are at EUR 154 out of the EUR 867. Moving to loan maturities, the average loan maturity is 2.7 years versus 3.4 years at the end of 2019. We have unused credit facilities of EUR 310 million maturing in 2022. As you might have picked up, we did the renewal of the RCF, so Syndicated Revolving Credit Facility in January, and we are happy to inform that it also includes an ESG element in it. The first issued by Huhtamäki. To the cash flow from an operating cash flow point of view, so cash flow generated by operations, we are roughly on previous year's level. The drop in cash flow, the slight drop of EUR 21 million, is caused by the CapEx and therefore we had, thanks to the strong operating cash flow, the ability to continue to invest. The most significant investments have been in the fiber category as well as from a country point of view, it is U.S., U.K., and Germany. Turning to the balance sheet. The balance sheet is showing a decline actually in equity and non-controlling interest that is caused by currency translation. Here we can see how significant the currency movements have been. Looking at the return on investment and return on equity here, I would actually highlight the fact that we are in our tables calculating it on a five-quarter average and therefore the equity part is lagging behind, so we have a higher level of equity versus what you see here as a spot rate in our calculations. The board of directors is proposing a dividend of EUR 0.92 for 2020. That is a payout ratio of 47%, so within the 47% on adjusted EPS, so well in the range of our dividend policy. It would generate a yield of 2.2% versus year-end share price. This is the 12th consecutive year of growing dividends for Huhtamäki if the payment is decided in the AGM. Looking at the progress towards long-term financial ambitions. Here we can really see the most negative part, which is the organic growth, where clearly the COVID has been the main reason for it. For the other ones, we are progressing and improving, so adjusted EBIT is slightly up or actually nicely up versus previous year and moving slowly towards the long-term ambition. Looking forward, the outlook has been updated and states now the group's trading conditions are expected to improve compared to 2020. However, with continued volatility in the operating environment. Huhtamäki's diversified product portfolio provides resilience, and the group's good financial position enables addressing profitable growth opportunities. That's the updated outlook. When it comes to the short-term risks and uncertainties, that remains unchanged compared to our previous statement. To conclude, the year has been very much colored by the COVID-19 pandemic. However, the performance has continued solid. It has improved on profit, been basically solid on sales, and we have been able to generate strong cash flow, as said here earlier, enabling then investments. We have seen also a gradual recovery in the year. However, volatility, especially in selected markets, has definitely continued as well as for food service. We see a strong continued demand for fiber packaging and retail tableware and, as you have seen, we have embarked through our strategic ambitions on a long-term growth journey. We will continue to focus on improving competitiveness, innovation, and sustainability for growth as main headings. With this, I hand over to Calle. Thank you, Thomas, and thank you also, Charles, for the presentation. Here on slide number 30, you can see that the upcoming events and maybe as a highlight that the annual accounts are coming out in the first week of March, and then we obviously have the Q1 results on the 22nd of April. Now let's continue with Q&A. The operator will give more detailed instructions on how to ask the questions, but please limit yourself to one question each. If you then have a follow-up question on the same topic, then that's fine. If you have more questions, then please drop back into the queue after your question. Now let's hand over to the operator for more instructions. Operator, please go ahead. Thank you. Our first question comes from the line of Carlos Bredengen from Berenberg. Please go ahead. Hi. Morning, everyone. I just wanted to touch back up on the CapEx and M&A going forward. Charles, as you stated previously, that obviously we see that your balance sheet is quite healthy, and then you're targeting more strategic ambitions that has been with limited opportunity during 2020. Can you talk a little bit about how would you think about the targeted CapEx and M&A going forward? Either you or Thomas. Thank you. Okay. Maybe I can start. Thanks for the question, Thomas, you chip in and complement my answer. As you said and repeated what I said before very clearly, we have a balance sheet as presented by Thomas that allows us to invest organically and inorganically. Absolutely no change to our strategy in terms of growth. Despite the setback of 2020, we are confident about the opportunities in our core, but as well in additional portfolios that derive directly from our core link to the consumption evolution. Our target for CapEx is basically always in the range of what we have always said in the past. We are planning in the same range for 2021. In terms of towards which type of portfolio, you understand probably from our results and explanation, and the bit of granularity we're giving is that there is a strong growth and strong demand on some categories like fiber. We see with the plastic substitution, particularly the demand in Europe, a need for further investing in new innovative products. You very much know about our previous investments, for instance, in paper straws, where we have become the market leader in terms of quality with our Fresh ready meal trays that were launched in the U.K. More products came in and very successful, like the fiber lids, for instance, that we have launched in France during 2020. We can say, like for the paper straws, now leading the market in terms of quality. That's for the CapEx, will very much go towards fiber, but not only fiber in all our different businesses. M&A, we remain extremely focused on M&A. We have a pipeline of potential targets. The year 2020, as you very well understand, has been a difficult year in terms of driving due diligences, making the right analysis, and the right alliances. We are confident that 2021 and going forward will be much more dynamic, let's say, and very much linked to our core business. Thomas, do you want to? Yeah, I could maybe add or complement to that one. First of all, I think both with regards to M&A and CapEx, the main thing is to do profitable growth. That's what we are aiming for. You might recall that we actually, in our previous ambition, had CapEx as a separate topic. We removed that one and rather talked about the net debt EBITDA of 2-3. That is really the guidance or instruction against how we are looking towards growth. There are categories where we see that we are better equipped ourselves to develop, and then we will put CapEx in, and then there are categories where there are avenues or opportunities to do M&A. I wouldn't stare blindly on which we are and how we are developing. There will be years where the CapEx is slightly higher, and there will be years where the CapEx is slightly lower than what we see in this year's development. Next question. Okay. Thank you very much. The next question comes from the line of Maria Wikström from Danske Bank. Please go ahead. Thank you very much for taking my question. My question is linked to the raw material and the expectation of the raw material price inflation. You said in the report that in North America, you said rather stable but going up towards the end of the year. We already have seen some of the plastic packaging peers announcing for price increases. How you would see the raw material pressure going into Q1? I guess, we need to talk about the different segments. As North America, the prices have been skyrocketing. It has been going up, but not as quickly in Europe. In flexible segment, you said it was stable in Q4, but then some of your peers, like Amcor, said that a further headwind in the Q1. Could you walk us through about how should we think about the raw materials going into 2021, please? Thank you, Maria. I will take the question, at least to begin with. In this case, Charles will then complement. I think you hit the nail in the sense that we consider 2020 to have been more on the favorable side. Actually, with a overall commodity level on a pretty low level. That goes especially for what you are saying around the polymers. I would say currently, to some extent, I could sign off on what's been said about what the peers have also identified. I would highlight, though, that it's a bit different depending on markets. With the low commodities, I guess it's more likely that you will see them go up than down as such. I would remind you, though, that the first quarter is typically the quarter when you see a lot of attempts to get the commodities up. Everyone is looking for whether there is demand or not. Therefore, my claim would be that demand will at the end be the decisive factor for whether we see an uptick in the commodities or not. Far, the movements have not been dramatic, and they are varying a bit depending on geographies as well. Maybe it's good to complement that our portfolio is diversified in terms of products, but as well in terms of materials. That potentially gives us more resilience in front of the increase in one commodity or the other, and at least more than in companies that potentially would be more exposed to that commodity, like polymers. That's the balance, maybe view that we need to take. May I just continue? Sorry, Maria before you go. One thing that also partly to some extent will have an impact is the continued currency development. Obviously, to some countries, import will be more difficult if the currency is weak. Sorry, please go ahead, Maria. Yeah, just to get my math right that at least, in the North America, the screen prices of the polymers have been going up quite a bit. How much is plastic out of your sales in North America? We haven't disclosed the plastic level, but as you know, we have been mainly growing in the fiber categories over the last years. We are talking still a double digit of the portfolio, lower double digit. Thank you. I'll just go back in the queue now. Thank you. The next question comes from the line of Jutta Rahikainen from SEB. Please go ahead. Hi. Let's continue with the topic of North America. Now we have the full year 2020, you made a great EBIT margin there. I think that's fair to state. Can you help us to look into 2021? A lot of stuff happened in 2020, of course. Product mix, COVID-19, all that. Perhaps my question, if I phrase it like this, is it evident that the EBIT margin will be down in North America in 2021? If so, do you think that will be a significant drop or just a drop? Thanks. Good morning, Jutta. We are usually not guiding. We will not avoid answering your question. The thing to consider, of course, with the very high level of the margin in improvement in North America, your question is pretty natural. This being said, the year 2020 has not been an easy year at all. There has been lots of favorable conditions, like we said, commodity distribution costs that were low in Q2, then rebounding a bit in Q3 and in Q4. That is expected to be slightly higher in 2021, certainly. At the same time, the mix has been favorable, as we have said, quarter after quarter during the entire year 2020. At the same time, there are aspects which have been detrimental to 2020, which should revert back positive for us in North America. Couple of examples. It's been a very disruptive manufacturing footprint in 2020 linked to the COVID issues that has been rising particularly in the second half of the year in the U.S. That has meant that we've not been able to grow as much as we could have grown because of the manning challenges in the market. That means that 2021, we can expect a higher utilization of our assets, and that will drive a certain compensation of the challenges that you and we highlighted. The second point is, as we have said, as a reason for a little bit of an expected but disappointing Q4 in North America from a sales point of view, this has been linked to the fact that we didn't have any more finished goods inventories as we entered in Q4, and that's usually what, from a seasonality point of view, these inventories is what helps us growing even more in Q4. That was not the case this year. Rebuilding those stocks will increase as well the utilization. All in all, to say that we see challenges, but we would not speak at this point of a substantial drop of our margin in 2021. Okay, thanks. The next question comes from the line of Cole Hathorn from Jefferies. Please go ahead. Good morning. Do you mind giving a little bit of color of how you are looking at your food service network globally, and what decisions and how you're basically making the decision to rationalize some of that capacity to make sure that you're not closing lines or products that you could be using in the future when growth recovers, and how are you thinking about that rationalization? Thank you. Yeah, that's a very good question. Not an easy one, but that's what we are doing on a permanent basis, analyzing based on our core business, our long-term strategy, but as well adapting to what's happening in the market and what we project to be eventually not just short-term or temporary changes, which, of course, should not be driving big decisions because, as you are clearly saying, we need to be able to produce what will be needed in the near future. That's why, during 2020, we've not taken some drastic decisions, for instance, on our footprint early on during the crisis, because we wanted to be clear on the projection and how structural are the changes happening in the market. This being said, we need always to be improving our competitiveness. Second, we need to adapt our portfolio to what's happening in the market. One big driving force is sustainability. A second one that is new is the acceleration of the shift in the consumption, and particularly because of the home consumption, the convenience, the need of convenience. In your question, you're asking about throughout the globe, and that's an additional complexity because things are not evolving in the same way from a sustainability perspective as well as from a consumption shift perspective in all regions at the same speed or in the same manner, whether you're in Asia, in Europe, or in the U.S. Fourthly, because of sustainability, there is a drive towards plastic substitution in the FMCG channel, which is a new opportunity for us, and that is driving some of the investment decisions that we are taking. Very clearly, that's linked to the IAC that we were mentioning during the presentation, we are taking decisions to adapt our footprint according to what we see are structural changes or structural competitiveness challenges that we must address. One was in Q3 with the New Zealand restructuring. What has been decided in Q4 is more around Europe with the need to restructure and adapt, for instance, in the U.K., in order to become more competitive. Some more positive are investments that we are taking for opportunities that are arising from these portfolio changes. Thank you. The next question comes from the line of Maria Wikström again from Danske Bank. Please go ahead. Thanks. My second question is on the Flexible profitability, which continuously have been lacking the targeting range of 9%-11% EBIT margin. What are currently the actions you are doing in the Flexible segment to basically get the business closer to the targeted profitability level? Thank you, Maria. On the Flexible business, the first disclaimer that I think is extremely important to remember is 2020 is a huge disruption, much more than we may have thought at the beginning of the crisis. The reason is very much linked to emerging markets, how the COVID crisis has impacted the demand in emerging markets, and particularly in India, where we are, of course, very exposed. Very exposed to growth when things are usually going on the positive side, but as well, during 2020, it went really downside in India. This is the temporary impact. Why I'm saying it's been disruptive in the P&L, so in the profitability, because particularly for instance, in India, there was not what you would get in Europe, for instance, with the furlough and all the possibility to address your cost during this period with much more flexibility. In India, from a legal perspective, there wasn't this possibility. We have been hanging up with our structural cost as well as all the labor cost during the entire year 2020. At the same time, you're asking what are the actions, and that's a natural question. We are taking actions on managing our portfolio. This is something that started in 2019 that resulted at the time in a pretty interesting improvement of the margin. We are continuing this. Second, we are working on productivity actions in our manufacturing footprint and efficiency. I would like to mention that when we look at our flexible headcount, for instance, as a matter of an example, because India has been very much in the spotlight of driving the margins down in 2020 for the reasons explained, we have been reducing our resources and adapting our capacity from a manning point of view. This shall result into improvement in 2021. Obviously, a lot is going on, and the margin ambition of 9%-11% on the midterm remain absolutely true, and the commitment that we have taken remains. Okay, thank you. The next question comes from the line of Robin Santavirta from Carnegie. Please go ahead. Yes, good morning. Thank you for taking my question. Now, I have a question related to the outlook statement you provide, basically a statement that you look for a bit of a better trading environment this year. Now, if you look at 2020, you had really strong demand for the on-the-shelf business and then obviously weak demand in the on-the-go segment. What are you seeing now for the winter and the spring? Do you expect more of the stimulus of the development that you had in H2 last year, or do you already now see a bit of improvement in the on-the-go business? Thanks. Robin, I would say the current state is for the on-the-go business, quite similar still at this point of time. I think what we saw in the summer, we saw as it seems, temporary uptick as markets were opening up and people were able to move around. I would say that one can expect a similar outlook for the food service segment as long as we still have limitations of movement in the markets. Again, to Charles' point here earlier, some markets will open up earlier, some markets will be locked down for longer periods. From our point of view, the progress, if looking at food service as a segment, will be dependent on whether it's a small or a bigger market that opens up. North America, as an example, has been quite stable now in the food service since summer. But still on. All right. A clearly lower level. All right, thanks. Just a sort of continuation of some of the questions earlier on input costs. I would ask, in North America, what is the average price or time span for the price agreement you have? Do you have a lot of those sort of expiring at the end of this December or is it sort of ongoing agreements throughout the year? North America consists of a number of businesses. First of all, our activity around contract management as well as reactivity against movements in both commodity and external environment has clearly improved over the years. I think that's one of the reasons why we have been more stable in the margin development all in all in North America. That's my first statement to it. When it comes to the businesses, it's pretty much the typical one with retail and consumer goods. You normally have longer term contracts than you would have with food service, and therefore the movements in food service are typically bigger than what we see in the other categories. Thank you, Thomas. That is very clear. Thanks. The next question comes from the line of Pasi Väisänen from Nordea. Please go ahead. Great, thanks. This is Pasi from Nordea. I saw that there were even EUR 46 million one-offs booked for the second half 2020. Well, I guess it's a fair assumption that there were nothing operational items included on that amount, but could you please open up how much about the costs or depreciations we could actually expect to be lower for this year regarding these one-off bookings than your earlier prior period? Thanks. Well, first of all, with regards to the IAC, so the ones we have been booking will have immediate effect. All in all, we are expecting some roughly two-year payback time of them from the day. What you will see is that asset write-offs in total were roughly EUR 28 million. One can assume that the average length of that remaining is not as much as for the other ones, but we don't disclose the absolute amount of depreciation out of it. Take my guidance on how we look at all IACs of an assumption of roughly two years payback. I want to highlight the other stuff I said already in my presentation. The difference between EBIT and EBITDA, that is what I just said on asset write-offs versus compared to the total IAC. The other thing I said was that when looking at the net reported gross margin, it's roughly 1% lower than the adjusted. Roughly 1% point was the effect on gross margin level. Yeah. Okay, I see. When looking at the kind of, for example, personnel costs or production costs, is there some kind of reserves or cost bookings which actually could be used for this year? For personnel cost, the way we are obliged to take them is that personnel cost restructurings can be taken only once the consultation has been done, and typically the time to market from consultancies to when they start to kick in is not that long. That's maybe the statement around that. Okay, great. Thanks. That's all. We have a follow-up question from the line of Jutta Rahikainen from SEB. Please go ahead. Yeah. Hi. Actually a question still on the non-recurring costs. This settlement of industrial dispute, minus EUR 10.5 million, what was that about? Thanks. Thanks, Jutta. This relates to a one-time settlement of a historical industrial dispute, and the parties involved have agreed not to disclose any details about the settlement and therefore we cannot comment further on this matter. Okay, it's done and dusted like this now? Yep. Yes, absolutely. Yes. Nothing more to come on this. Okay. All right. On the same topic, I think, or I believe it's the same question that was already asked, but if I clarify it this way, how much savings do you expect to come, everything else equal, 2021 versus 2020? Well, in 2021, you may understand that there is, as Thomas was saying, there is a time to market. Thomas was saying this time to market is pretty immediate, but still there are consultations ongoing. We are expecting overall, when we are talking about all the plans recorded so far, we are expecting roughly a two years payback. That means that you can expect as on a full year basis, probably on an annual basis, more savings, but already in 2021, about half of them. Okay. Thanks. The timeline is clear, just the magnitude. What is the baseline I start to calculate? Do we talk about all the one-offs booked in 2020? You can relate to the roughly EUR 40 million. EUR 40 million. Okay. Cool. Thanks. I want to clarify one thing still to Pasi, just to make sure that you get it, that the EUR 28 million I was referring to is then this year booked in the depreciation. That's why the depreciation is on such a high level this year. You can assume that normalized levels is then on a lower, more close to the level of 2019. That just as a further clarification. We have one final question again from Cole Hathorn from Jefferies. Please go ahead. Good morning. Just following up on North America. You talked about some of the positive offsets you could do there from the manufacturing disruptions and improving that and getting higher operating rates. We've seen some of the U.S. producers like WestRock and Graphic Packaging announce price increases for SBS in the paperboard side from February. How do you pass through those higher raw material costs to the customers? Could you just give a timeframe of when you have your negotiations with your food service customers and also on the paper retail plates? Would there be anything that would be impacted there from the paperboard side? Thank you. This basically goes back to the question of Robin earlier. Here again, the paper board material goes into a number of product categories and depending on which you are in, you have a either lag of, let's say 3-6 months, or you have a more immediate effect. There are some categories where we basically need to wait for the new contract negotiations. It's a variation in between. Thank you. We have just one question again from Jutta Rahikainen and from SEB. Please go ahead. Yes. Thanks. Also a topic we already partly covered, but a bit more specific on the emerging markets demand. You said Q4, especially India then was weak. The first part of the question, do you think India is more normal than in 2021? Normal as in growing. The second part of the question, how are the Asian countries for you, Chinet, Vietnam, Thailand at the moment? Okay. Thanks, Jutta. In the context, projections are quite challenging, but not avoiding the point. Despite all this volatility that we're seeing, yes, India's been very affected. It's been the most affected market for us. How do we see 2021? We see it much better, and we are seeing a slight rebounding of the demand as we speak in the first part of 2021. Second, from a macroeconomic point of view, there is a strong consensus around a 5% GDP growth in India for 2021, which makes us confident that the economy and that the consumption will rebound. In the other emerging markets where we have been suffering as well, to a lesser extent, but still suffering. Chinet, where we are present now on only on the food service side, Chinet mainland is back to normal, as we see it from a demand point of view. The rest of Asia is growing in terms of prepacked products, food, and therefore our flexible packaging, however, still depressed on the food on the go. Very much linked to lockdowns and what we see is very strict regulations in some of the Asian countries, which explains probably the reason for their very low rate of COVID cases, but disrupts, of course, our food service business. We believe that it's only temporary and that we should see better days on this as we progress during the year, but again, positive on the flexible. It's a bit of a two sides picture as we see it right now, but more positive than in 2020. Okay, good. That's all for me. Thanks for the answers. As there are no further questions, I'll hand it back to the speakers for closing remarks. All right. Thank you, Operator. Thank you very much for the questions and the answers. This then concludes the event for today. Thank you very much, and hope to see you at the Q1 results. Thank you and have a really good rest of the day. Bye. Thank you. Thank you.