Hello. Welcome to Kamux Q1 result presentation. My name is Juha Kalliokoski. I'm CEO and founder of Kamux. Good morning. My name is Marko Lehtonen. I am Kamux CFO. As usual, I will present the overview, Marko will then present more details on the final sales, as well as on our country by country performance. Here is our agenda for today's presentation. Q1 in brief, financial development, strategy outlook, and financial targets, then we summarize those. We continue working towards our vision to be the number one used car retailer in Europe. The vision itself is unchanged. The first quarter of 2023 was difficult, even though the market started to recover. Prices for used cars decreased in January to February, especially in Finland and Sweden, then increased slightly in March. There are two separate things to note. At the turn of the year, we made necessary write-offs for cars in stock, which we would have made losses. As prices fell, the rest of the inventory did not deliver the expected margin either. However, the situation has improved month-by-month during the first quarter. Our revenue decreased by 6% to EUR 223.1 million, last year it was EUR 237.3 million. Our gross profit decreased by 14.5% to EUR 20.7 million. Our adjusted operating profit decreased by 85.4% to EUR 0.8 million. This corresponds to 0.4% of revenue. The like-for-like showrooms revenue decreased by 10.4%. Sales of integrated services developed in line with revenue from integrated services was EUR 11.5 million, corresponding to 5.2% of total revenue. Overall, the market for used cars seems to be stabilizing, but demand in first quarter was still sluggish, and consumer confidence was weak. Car sales prices decreased at the beginning of the year, especially in Finland and in Sweden. We maintained our market position in all of our operating countries during the first quarter. The market for used cars grew moderately in Finland and in Sweden during the first quarter. In Sweden, the market contracted slightly compared to Q1 last year. In Finland, the total market grew by 1.2% during the quarter. In Germany, market grew 2.4% in the first three months. In Sweden, the market contracted by 0.7%. New car registration in Europe grew by 17.9% in the first three months. In March, as much as by 28.8%. Growth was driven by large markets, especially Spain and Italy. In the Nordic countries, however, there were less new car registration than Q1 2022. In Finland, new car registration were down 3.5% in January to March, but in April, there was 13.6% growth. March was eight consecutive with the month with an increase in new car registration in Europe. The growth in registrations is all about deliveries, however. In our understanding, the order books are not doing so well. In terms of the overall market development, consumer confidence is still weak, but not longer on as low level as it was during Q4 last year. During the year, a lot happened in the used car market, and the consolidation of the industry continued. Many operators focus on online channels has issued with huge problems with profitability and had to adapt their operations. For example, the British Cazoo announced its withdrawal from continental Europe, and in Q1 2023, Cazoo completed its withdrawal from Germany. Also, Carmax has closed its consumer business in several European countries, at least Germany, Norway, the Netherlands, Italy, and France. On the other hand, Aramis and Autohero grew their operations in 2022. Aramis made acquisitions in Italy, where it bought Cazoo's operations, and also in Austria. Autohero grew its business. These two players are now slightly ahead of Kamux, both operating in several countries. That's why we are now fifth largest used car retailer in Europe. In Q1 2023, our revenue decreased as a result of the decrease in car prices, especially in Finland and in Sweden, and a lower number of sold cars. As we have stated earlier, we have waited lower prices cars in Finland since Q4 2022. The main reason for the decrease in operating profit was the decrease in metal margin and revenue. The market seems to be normalizing slowly. We saw modest growth in Finland and in Germany. In Sweden, the market continued to contract slightly, much less, so that during 2022. With the number of cars sold decreasing by 1.8%, revenue decreased by 6%, as average car prices fell in Finland and in Sweden. Sales of integrated services as percent of revenue grew as average prices fell, but the absolute EUR amount decreased slightly compared to comparison period. Based on the good experiences gained in Finland, we decided to launch the renewed Kamux Plus also in Sweden from February onwards. In Germany, the penetration of financing services continued to develop positively from 27% - 31%. It should be note that the revenue from financing services and Kamux Plus is distributed over the entire contract period. In summary, we announced the combination of two showrooms in Tampere, Finland. In connection to this, the utility vehicle sales in Tampere moved to the dedicated location in Lakalaiva area. In February, we announced that we will open a new showroom in Düren, southwest of Cologne. The showroom was opened at the beginning of April, official opening is taking place just now, today and tomorrow. The Düren showroom is our first showroom outside the Greater Hamburg area in Germany. The location is excellent, as more than 3 million people live in the triangle from nearby Cologne. Our sort of financial review, I would like to remind you that the company will update its strategy and financial targets at the beginning of 2024. Thank you, Juha. I would like to start by reminding that the comparison period last year was still relatively normal, so the Q1 2022. Of course, the impact of the Russo-Ukrainian War was still relatively limited. That of course, makes the contrast relatively big for the current quarter, what we just closed. As Juha was discussing, the used car prices, they were still decreasing in January and February, and in March, there was a slight increase starting to happen. However, there were relatively strong differences between the models and the manufacturers. For example, Tesla was making several decreases of the prices at the early part of the year. The margin, what we got from the car, that was still relatively weak, but it was developing during the quarter positively. The gross margin per car was EUR 1,354, which was down on the previous year. Even though the Kamux operating model is very adaptable for different situations in the business and in the market, however, the operating costs were slightly increasing compared to previous year. Of course, there were certain investments for the growth. We are also currently investing to renew our financial systems. As you know, with IFRS treatment, when you are investing into Software as a Service, so-called SaaS, systems, you are expensing this mostly, so not recognizing it as a CapEx and depreciating over a longer period, as typically has been the investment projects for the IT and digital systems. Of course, on the cost, there were certain impact on general price increase in terms of inflation. Our return on equity was 6.1%, down on the previous year, and the equity ratio, 51.2%, was very strong and improving from the previous year. Still, I always when I start, I want to underline that the strong balance sheet has been always the backbone of our strategy. When we look, the quarter one, as Juha was mentioning, the quarter was very difficult and the market situation was continuing challenging from the end of the last year. Our revenue was slightly decreasing when the units, so meaning sold cars, were slightly down and also more when the prices was also going down. Of course, would like to remind that the reduction of prices, especially in Finland, was partially own choice. As we said before, we were buying also cheaper cars into our stock at the quarter four, starting quarter four last year. In this context, our revenue was EUR 223.1 million and -6% compared to previous comparison period. Gross profit was EUR 20.7 million and down 14.5%. Our adjusted operating profit was EUR 0.8 million and -85.4%. Integrated revenue from integrated services was 11.5%, slightly on absolute terms lower than last year, but the relative terms from the revenue was a bit higher compared to the previous year. When we look many of the KPIs, for example, inventory turnover, or we look equity ratio or return on capital employed, we see the slow fill-up of the inventories, what we have started now in the spring towards the summer season. When we turn eyes to Finland, in Finland, the used car market was turning into small plus in the first quarter, but the revenue decrease was mainly coming from the average sales price of the sold cars. So meaning that we were focusing more also on the cheaper cars, meaning our own actions, and also slightly from the integrated services. The revenue was -0.6%, and it was EUR 152 million. Gross margin was decreasing compared to the previous year and was EUR 15.6 million. In Finland, the gross margin was also relatively weak because of the pure margin what we get from the cars, and there was this pricing dynamics behind and also from the integrated services slightly. We are every year competing the financial services providers and selecting the best providers for us. Of course, there are certain differences on these revenue models or how we are compensated, and that might also do some slight changes on comparison periods, depending on which companies we are using at what time. Operating profit decreased by 35.2% compared to a previous year, and it was EUR 5 million or 3.3% of revenue. Firstly, it was decreasing due to the average gross margin per car, but also partially from the increased costs. In Sweden, the market continued to be relatively difficult in quarter one, our total sold cars development was -12.4%. Total revenue was decreasing 14.7% compared to the previous year and was EUR 68.6 million. In total revenue, there is also sales to other countries, mainly to Finland, and also as Finnish market was also not very strong, so we were selling slightly less cars to Finland as well compared to the previous year. The external revenue was -24.4% compared to the previous year. Gross margin decreased compared to the previous year and was EUR 3.4 million or 5% of the revenue. There was also behind this margin from the cars. It operating income decreased compared to the previous year and was minus EUR 1.1 million or minus 1.7% of the total revenue. Revenue from the integrated services was at the previous year level, EUR 1.4 million or 2.9%. In Sweden, the operating profit was decreasing due to the decrease of sales and also average margin per car. As we were discussing also on the previous report, we are currently not planning new openings in Sweden, but concentrating our efforts and focus to improve the profitability in Sweden. In Germany, the picture was slightly different, and I'm happy that we were able to grow in Germany. In Germany, the revenue was growing with sold units, so meaning sold cars and also slight increase of average price. Total revenues increased by 9.1% compared to the previous year and was EUR 25 million. External revenue increased by 8.3%. There was also slight increase to the deliveries inside the group as well. Gross margin increased to the previous year and was EUR 1.7 million, or 6.9%. That I consider relatively good performance in the environment where the car prices were also in the beginning of year decreasing in Germany. Operating income decreased compared to the previous year and was minus EUR 0.7 million, or minus 2.9% of total revenue. Operating income was decreasing due to our investments for the growth. As we said, we were opening now in April, the Düren store. Sales from the financing services developed well, and revenue from integrated services increased to EUR 0.6 million, or 2.7% of external revenue. When we look at the balance sheet and our inventories, we were succeeding relatively well managing the capital tied into the inventories. The inventories were decreasing more than the revenue, which I consider always as a positive development. Purchasing market was working relatively well, excluding Sweden, where the weak crown has been quite much attracting buyers from all over Europe for the wholesale market. The new car delivery times are also slowly starting get shorter, and that is, of course, releasing used cars to the used car markets as well. The net working capital was decreasing 9%, and inventories were decreasing 15.8% compared to the previous year. As we were discussing before, in, especially in, when the COVID-19 pandemic was strongly affecting the business, we were driving constantly, let's say, relatively high inventory, as we couldn't trust that we are able to replenish it, when the situation is picking up. I would also like to remind that in year 2021, our net working capital was impacted by relatively high car tax debt, what we had in Finland, and that was due to the customs customs IP project, what the people had. For, at date of 2022, that impact, of course, was totally out already. That is increasing the 2021 comparison numbers. When we look at the cashflow, the cashflow from the operating activities, of course, is directly impacted by the changes in the inventory. In the operating, in the cashflow, you can see now our the impact of increasing the inventories towards the current summer season. The cash flow from the operating activities was minus EUR 8.1 million. It was slightly better compared to last year. We still continued the investments, leading with the knowledge and growth. In Q1, the investments were EUR 0.4 million. They were dividing EUR 0.2 million for material and EUR 0.2 million for imaterials. I was mentioning that we were investing in the digital systems, but also, we have been opening this Düren store now in early April. In the comparison period, last year, Q1, we were driving up Oulu Megastore and processing center. That was increasing the investments in the comparison period. We have been also investing or increasing our own resources in our digital resources. That you can also see that in the group functions, the costs have been slightly growing, and the investments have been slightly lower. Meaning we are currently doing more by ourselves and buying less from the external providers. Dividend from the last year, the annual general meeting decided that dividend is EUR 0.15 per share to be paid. Now in the early May, we were paying the first installment, EUR 0.05 per share. Now we go to the strategy outlook and financial targets. For this strategy period, growth was very focus point and very essential target. However, the changed market situation with Ukraine and war has been impacting our execution of the strategy. When I go through these main areas of the strategy, I would like to remind that because the market was still difficult, we have been focusing on the basic things, so meaning buying and selling and inventory management. When we look the customer experience, we have been now taking renewed Kamux Plus also in use in Sweden, starting from February. Considering utilizing data and leading with the knowledge, so we are currently renewing our financial system. Concerning the processes, we have been doing quite many actions in our network operations. We mentioned about the combining the Värmdö store to other Stockholm stores, centralizing the Tampere region stores, and we also informed about Raahe combination to other Oulu stores. Developing capabilities and continuous learning, we have been strengthening our training and HR organization further. Concerning our financial targets for the strategy period 2021 to 2023, the strategy when we launched it was launched in the quite different situation in the market and the world. Just would like to remind us that in the year 2021, the growth was almost 30%. However, last year, when Russo-Ukrainian War started and the impact of the war has been changing the market situation significantly, also executing the growth has been quite significantly different. In the first quarter, our revenue growth annually was -6%, adjusted operating profit, EUR 0.8 million, adjusted operating profit margin, 0.4%, return on equity, 6.1%, dividend on for the year 2022 was 55% from the net profit. Most of the financial targets, we were not in the target level in the quarter one. Outlook for 2022, 2023 is unchanged. In '23, Kamux expects that Kamux adjusted operating profit to grow from the previous year when the adjusted operating profit was EUR 17.5 million. I would like to remind us that there are still a lot of uncertainty in the market. Consumer confidence is still low, interest rates are high, inflation is still up, and of course, the different, the discussion and choices between the power sources, especially last year, has been very strong. Now I would like to just summarize then our quarter one. Revenue decreased 6% to EUR 223.1 million. Gross profit decreased to 14.5% to EUR 20.7 million. Adjusted operating profit decreased by 85.4% to EUR 0.8 million or 0.4% of revenue. Like-for-like showroom revenue decreased by 10.4%. Sales of integrated services developed in line with the revenue, and revenue from integrated services was EUR 11.5 million, or 5.2% of total revenue. The market for the used cars seems to be stabilizing, but demand remains sluggish and consumer confidence was weak. Sales prices decreased at the beginning of the year. Thank you, and we are now happy to answer your questions. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Maria Wikström from SEB. Please go ahead. Yes. Perfect. This is Maria Wikström from SEB. I have a few questions where I would like to start about the gross profit per car. As you said, Juha said earlier that you saw that the gross profit per car was improving month-over-month in Q1. Has this trend continued in April as well? Thanks, Maria. That is very good question, but unfortunately we cannot comment on second quarter development. Okay. Maybe the second one on the just the consumer's appetite buying a car with a loan. On the penetration rate was flat year-over-year in Finland. Is there, I mean, is there any changes in the consumer appetite of buying a car with a credit now when the interest rates has been up quite substantially? In terms of the profitability, do you still see that you can reprice your the higher cost of credit? If you think about the last year, we saw that the penetration rates for the financing were developing across the markets positively. Now in the quarter one, we see that they remained in very good level or slight positive development in Finland, Sweden. In Germany, the penetration rates compared to previous year were still nicely growing to 31%. Meaning that the appetite and interest for the financing is among the customers, and they are seeking for these services, that we can see. As we have also said before, that we have increased, along the market interest rates, also the offering rates we'll be offering to our customers. Okay, perfect. Finally, your guidance is growth in adjusted EBIT for the full year. Of course, I mean, the Q1 started quite sluggish, which I think, I mean, you kind of like highlighted earlier as well that the market has still got a bit difficult. Did the Q1 outcome match your expectations, what you had when giving the guidance? I think that was in early March. I think it's really relatively clear from our comments that we were not fully satisfied with the quarter 1. When we think about the outlook, we were considering there also quite some uncertainty. In that sense, the outlook remains unchanged. Okay, perfect. I have no further questions at this point. The next question comes from Pia Rosqvist-Heinsalmi from Carnegie Investment Bank. Please go ahead. Hello, everyone. Yes, it's Pia from Carnegie. A few questions, if I may, and I would like to start with the gross margin. You say in the report that the share of plug-in or not the share, but the plug-in hybrids and the EVs have continued to increase clearly. I would like to understand, now in Q1, this mix shift, is it burdening or supporting your gross margin in Q1? What we have said before and what we see clearly that on the long term, the trend is driving towards electric vehicles, and of course also, plug-in hybrids has been there more. Typically, those cars are relatively more expensive than the normal traditional combustion engine cars. If thinking now the dynamics of the last year and especially, the share of expensive and cars and EVs, namely, Teslas in the stock, of course, the proportion of those cars were less in the quarter one. In that sense, maybe the impact was not so dramatical compared to the previous year. On the overall terms, we have said that we don't see really big differences between the power sources, what we sell. Of course, the, especially last year, the discussion and the very drastic changes in demand between the power sources has been impacting us strongly. If I continue shortly, when we speak about the price levels, it doesn't matter for us. Is it diesel or EV car? It's more about the price level, what is impacting the situation in Q4 and also part of Q1. Okay. Clear. Thank you. On integrated services, why did the integrated services sales decline year on year? Was it explained by the average selling price decline? I'm just looking at last year's numbers when the number of cars sold also declined, but integrated services grew strongly. Can you please discuss this, please? I think I need to start a bit further that if you think about the last year and the comparison period for the last year, meaning 2021. There, of course, the COVID-19 was having quite still strong impact still to the business. Let's say people were not really using so much financing services. What we see throughout the last year that the demand for the, especially for the financing services were increasing across the markets. That was of course impacting the comparison period from 2021 to 2022 and now from 2022 to this year, 2023. That dynamics is there. You are right, of course, average sales price has an impact for the integrated services. Also, the sold units have impact there as well. I would also still maybe want to remind that as we have been discussing about the renewed Kamux Plus and impact of the Kamux Plus in Finland and now in Sweden, I would like to remind that the contract period are long. Of course we are then, so to say, phasing the income proportionally through the contract period. Meaning that even though if the penetration rate is raising, it doesn't necessarily immediately materialize in the revenue from those services. As Marko earlier mentioned about the, about the, what is the model, with the, with the finance companies, how they, how the revenue coming in, those are small differences between the years and for example now compared to 2022 to 2023. Correct. Clear. Thank you. I'm coming back to the question Maria asked regarding integrated services and particularly financing. In this environment, have you needed to lower your own margin earned on the financing? When the interest rate increased, of course, the loans what we are selling are fixed interest rate for the customers, and it's easy to buy and very secure for them. When the interest rate increased, it's not so easy to put in all those interest rate increased. Of course, we do our best, but we will see is there coming impact for our revenue on that side. Yeah, for compare if the price was a year ago, interest rate, for example, 4.9% for the customers, and now we're asking price is 7.9%. There is big difference between there. Right. Thank you. A few, still a few questions, maybe on Sweden. The year seems to have started very slowly, and you have, to my calculations, lost some market share in the quarter. With regards to Sweden, are you proceeding according to your plans and expectations, or are you facing a larger headwind in Sweden than you assumed? As Marko mentioned, and maybe you see from our feelings that we are not satisfied about the our Q1 results. Also in Sweden, we are not satisfied about the sales and also the margin from Sweden. But we did a program for Sweden in five different topics, what we are driving and checking every week how it going further. We see the better impact what is came out month by month in this year. I believe that it continue also. All right. Thank you. Then a question still, if I may continue, on your balance sheet. It's clear that your balance sheet is strong, but can you remind me, have you disclosed the covenants on your loans? Do you have a net debt to EBITDA covenant? Is this at risk if the current market conditions, you know, stabilize but not significantly improve? I think we have not disclosed the covenants on details. Of course, as everyone, we also have them. When you look our current numbers, the balance sheet doesn't really raise any concern. I think it's also good to remember that the whole car stock is our own, so meaning we are able to adjust the level of cash and also the level of debt with our stock or changing the stock levels as well. There we have certain things in our own hands. I mean, of course, very clearly, let's say if we would continue to make less than EUR 1 million per quarter, that would cause us a problem, no doubt. Okay. this is- Thank you. Then finally... Yeah. This is not the level where we are. Yeah. Thanks. Finally, a question, a very nitty-gritty question, but on the depreciation and amortization. There was a depreciation on group level, now in Q1, which you have not done previously in the comparison quarter or even last year. Can you just explain what is this? Yes. That is very good question. There is couple of things which are increasing the depreciation compared to previous year. One is that we in the first quarter last year, we didn't have this Oulu mega store and processing center in use, so meaning the depreciation started only after first quarter. So that has an impact. Of course, then the second impact is increase or our investments to the digital experience. Okay. Clear. Thank you. This is all for me. The next question comes from Maria Wikström from SEB. Please go ahead. Yes. I had one follow-up to Sweden, which obviously was, like, one of the weak spots in this quarter. On your, I mean, on your own analysis, what's the- Like the biggest problem in the Swedish operations, and why it's not possible to get it on black figures? It's easy answer. Too less sold cars and low margins. Behind that, of course, there are some things. The used car business is still quite a simple business. The inventory turnover and purchase price should be lower than the sales price and what kind of cars you are purchasing and how you can boost the sales in the difficult environment. Maybe I don't open that more. I promise that we are very deep in Sweden and it. Direction. The direction is the right. Yeah, that will be definitely very interesting to understand the dynamics that, I mean, now it feels to me that this is more of a management issue, but I'm not sure that, I mean, given these, what, 12 years you've been in the market that, I mean, how it's possible to be fixed. If I listen to other players in the field like Elia Group, who has been saying that, I mean, they've been very happy with the used car business. There are players making money in the market, so it will be very good for the analyst community, I think investors as well, to understand really that, I mean, what's the root issue in the Swedish market. Thanks. No further questions. Maybe when we compare to the Elia or something else who are the new car sellers, the biggest problem in Sweden is to purchase the right cars in the right price. As Marko mentioned that the demand from all over Europe coming to Sweden because the crown is so cheap. Inside the Sweden it's very hard to buy the cars. For some of the brand dealers, they sell the new cars and take the trade-ins. In this situation, this is totally different business for them. There are no more questions at this time, so I hand the conference back to the speakers. Thank you. We have a question, we had a question from the audience here. Still relevant? Jussi Koskinen. I had a question about market share also, and I got answer to Sweden, but how about Finland? In Finland, market increased slightly and we lost some market share, if I understood right. How about Finland? Any, let's say, reasons for losing slightly market share in Finland? If the market increased totally to 1.2% and we increased in sold units 0.8%. We are very near, you know, each other, but of course, we are the growth company and we are not satisfied about 0.8% increase. Okay. That was all. Thanks. I hand over to Thomas Westerholm. Thank you. Thomas Westerholm from Inderes. A couple of questions from my behalf as well. If we start off with the guidance, you repeated it despite, well, a slow start to the year. What do you see being the drivers of improving profitability throughout the rest of the year? When we look this year or what we think about this year and also last year, the last year was very much flavored with these drastic changes between the power sources and the price changes. That looks to be that dynamics is stabilizing, and also it looks that the market is slowly stabilizing. If you look on the market levels now, I mean, Sweden was still slightly negative, but actually Finland and Germany was more or less starting to get on the green numbers. That is something what is the thinking in a way behind that if there is not really like dramatic things happening in the market, given of course all the uncertainty, we must be able to perform better. When we compare to the last year and how we're aiming to this year, that it, start of last year was quite okay, and it's going down at the end of year. Now when we started this year, we are still low level, and we are going to better. It's totally different dynamic speed with the years. Yes. You see metal margins slowly improving going forward from now. Am I catching that correctly? Yes, we believe. Yeah. Great. Another question about your inventory. Despite driving down your inventory levels from last year, your inventory turns did not improve in days measured. What's behind all of this? I would maybe like to remind that when... If you look at the formula, so, we are measuring the moving averages for, like, a 1-year period. It doesn't necessarily tell exact, let's say, the recent months or recent situation, what is there. It has a little small delay how we calculate it. Of course, as we have said that, on the level of 56, we are also not happy. Be better. What's the main reason behind this? Is it Sweden kind of slowing down inventory turns? We have not really cracked it into the regions that how it has been like development. As I was saying that there, the period is relatively long and there is a little bit different dynamics also included in that period. Fair. Going to operations abroad, Sweden and Germany, how many unprofitable stores do you have here? Could you improve profitability by driving down stores that aren't performing as well as maybe hoped? We have not really, much discussed about the store-level profitability. It is clear in retail business that actually in all the markets you always have some store or stores which are not performing according to the plan. That is, of course, then our, I would say, daily business to lift their performance level. Thank you. Time is running. We take one final question from the chat, and it's about costs. Personal costs increased fairly much while FTEs were down. Sales lack growth. Are the incentives set correctly, so that sales personnel are rewarded according to sales figures? How did the costs increase while sales lacked growth? We have discussed also before that, great proportion of the people, are compensated on the level of the sales or let's say the sales success and the gross margin success. There are also other components as well and in certain countries, there are also different programs, government-supported programs to compensate the inflation and so on. There are also these kind of elements in place. Very good. Thank you. Yeah. Now I think it's time to say goodbye to our English listeners and get ready for the Finnish webcast. Thank you. Thank you. Thank you.