Good day, welcome to Suominen's Q2 result audiocast. My name is Julia Koivulanaho, and I'm the Interim Head of Suominen Communications. Next, our President & CEO, Tommi Björnman, and CFO, Janne Silonsaari, will present the result. Janne, Tommi, the floor is yours. Thank you, Julia, good morning, everybody. Thank you for joining this second quarter 2024 release discussion. Agenda. I will go through the second quarter in brief, as well as the first half of 2024. Janne will continue with the financial reviews, I will progress with the strategy and give you the outlook of 2024. After that, Julia will take care of the questions and answers if you may have any of them. If we look at the second quarter in brief, we saw a 5% increase on our top line, amounting to EUR 118.7 million, which was mainly driven by the increase of the volume and especially the volume surge in the U.S. That drove, of course, partially the comparable EBITDA to EUR 5 million, comparing to the previous region to EUR 2.7 million, which was actually not only driven by the volume, but as well as the improved sales mix. Driving the whole business overall, the cash flow from the operation ended up in EUR 2.1 million; comparably, previous year, it was EUR 6.4 million. In order to look at, briefly, the first half of the year, we can see that the total amount of the sales was EUR 232 million. Janne will come with a little bit details about how it was composed, comparable EBITDA during the first half of the year was EUR 9.5 million, which was a bit more, EUR 4.2 million, better than previous period, which we could say that actually at this case, it is satisfactory based on the situation where we are today. Of course, the cash flow was slightly negative and also that on the negative side, compared it to last year. We have some explanation coming from Janne that what was driving mainly those deviations compared to last year. All in all, the second quarter and first half of the year, we could see that the improvement continued, as seen in the numbers. Okay, Janne, please. Let's look at the financials. All right. Good morning on my behalf as well. As Tommi mentioned in the key figure summary on previous slide, net sales increased roughly EUR 6 million or about 5% to EUR 119 million. We have been able to increase the sales volumes, but sales prices have been lower, driven by the lower raw material prices. Slightly positive currency impact on Q2. We saw basically the same amount negative on Q1, so the year-to-date level, no impact from the currencies. We continued the good trend on the new product sales. As a reminder, that means the products that we have commercialized during the past three years, with the sales exceeding 37% of net sales. We keep on reshaping our portfolio according to our strategy and towards the more sustainable products. On year-to-date level, after first half of the year, the net sales are EUR 232 million. Last year, H1 being slightly below EUR 230 million. On EBITDA, the next slide. Comparable EBITDA in Q2 was EUR 5 million, as Tommi mentioned. We have seen a clear improvement from previous year and small step from the Q1 this year. The main drivers for improvement were increased sales volumes, especially in Americas region, and better sales margins. There was a minor impact from the currencies, nothing major. We can say that the gradual improvement continued, but we are still facing some challenges on our internal efficiency actions and how they contribute. First half of the year, as said, the EBITDA has totaled EUR 9.5 million. Here is a consolidated statement of profit and loss, mentioning items affecting comparability. Those are costs related to the Mozzate plant closure and restructuring program that we announced the end of May. In Q2, there was EUR 1.2 million severance cost booked related to the restructuring activities. Regarding the Mozzate closure, which is targeted to be finalized by the end of the year, we actually saw a small positive impact, roughly EUR 200,000 during the Q1. Really the minor cost, any more positive from there. On cash flow, the next slide. Cash flow from operations was EUR 2.1 million in Q2, resulting first half of the year on close to the zero. Decrease in the cash flow from operations in the first half was mainly due to the negative change in the net working capital. This is really driven by the increased inventory levels and some mix on higher receivables or customer mix driven the higher receivables. On inventories, we have reacted on the challenges on global supply chain. We see that the situation will balance on second half of the year, but at the same time, we want to secure the supply security. That has really been the main impact on net working capital, but nothing major there either. Next, strategy, and back to you, Tommi. Okay. Thank you, Janne. Thank you for the brief summary. Let's look at that. In order to look at our vision, mission, strategy, the strategic focus areas, and values, of course, we continue with our improvement actions and activities within the company. As seen from already in the increase of the new product sales up to 37% of the top line, it will also reinforce that we are moving to the right direction. Just as a reminder, this strategy frame is between the years 2020 and 2025, and we are already in the process of a little bit reshaping this, and it's very probable that before the end of the year, we will come with some more fine-tuned strategy once moving forward. Execution is the important part, and we continue executing this strategy. As a part of that execution of the strategy, we already announced in May the investment in the U.S. to focus more sustainable products. That is proceeding well. It will start according to the plan what we had during the first half of 2025. At the same time, like Janne already mentioned, we started a small restructuring program as a part of our transformation journey. That is also progressing well, and we look forward for the savings. Like say, the annual savings expected next year is actually EUR 1.5 million. The aim is to also to close this program before the end of Q3. Of course, once that is closed, we will announce you. I'm pleased to inform you as well that we continue our journey of increasing the capacity in the sustainable products. Also yesterday, based on the board resolution, we are going to make a new investment increase in the capacity of the Carded-Pulp-Carded products in Alicante. The investment roughly is EUR 20 million, and it is expected to be completed the H2 of 2025. This is very exciting. Of course, as a company, we need to make sure that the base business is running well and we plan properly for the future growth, which is actually, this is an indication of that and one important cornerstone of the execution of the strategy. Going forward to the outlook of 2024, as in the previous course, we stay the same so that we say that in 2024, it is expected that our profitability EBITDA will increase from EUR 15.8 million as it was last year. We keep the outlook the same. Of course, in the market overall, if we look at, there are certain uncertainties, but of course, we can also see some slightly positive signs or areas where we can see that some part of the markets are fairly stable. Julia, back to you. Any questions or answers? Yes. Now it is time for questions. Are there any questions from the lines? If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Joni Sandvall from Nordea. Please go ahead. Yes. Thanks, Tommi and Janne, for the presentation. Starting with the volume development, can you please elaborate a bit more? You said that America's volume development was positive, how about EMEA? Was it positive also there? I can take it. I can talk in a rough number. I would say that actually, we saw the positive development in both of the areas. Slightly less in Europe, and the main driver for the volume growth was coming from United States. If I would say roughly two-thirds from United States and one-third from Europe. Okay. Perfect. About maybe a little bit about outlook on the markets. I think you mentioned that you expect no major changes there. How is the visibility currently in the market if you compare, for example, situation in Q1? I would say that the market and the visibility have remained roughly the same. The market situation is we need to look at them a little bit differently. If we look at Europe is a market where there is a fairly fierce competition because of the structure of the market. There are more players in Europe. The market situation in Europe, it's of course tight, but I would say it's stable. I can't say that it's very positive, but I would say it's more stable. While in the U.S., it's less consolidated market. Of course, there are a little bit less players. The market situation is because of the overall economy, it has been driven quite well. I can't say it's extremely good, but I would say that it's somewhat better that in Europe and continues to be fairly good. If we look at Latin America, Latin America, the first half or the first quarter of the year was a little bit softer. We are expecting that the second half of the year will be somewhat stronger. Net net, in order to look at the global picture, I would say that it's fairly stable in our business. Of course, we need to remember this is a consumable product mainly driven by the baby care business. Okay. That's clear. Maybe to Janne, sales and marketing expenses were up sequentially on a year-over-year basis. Was there some one-off type investments or costs here? Well, no specific in that sense, but yes, we have had certain, let's say, project type of costs that we have been posting as an OPEX on that side. Yes, that has been mainly driven. It's not really any specific items in that sense. Naturally, we have been also investing on the R&D side and having a good activity on that side. New products and the general development that we have been doing there in order to shape the portfolio on more, let's say, sustainable and more profitable direction. Okay. That's clear. Maybe then a follow-up on the cash flow situation and on the working capital. We see the clearly negative impact during the H1 and also in Q2. You said that you have made some actions on the inventory level. How should we expect now the working capital changes during the H2? Well, I do believe, and it's a clear target that we will improve there. That's clear. I would say that there's a little bit of a question mark for the Q3, but Q4, I do believe that we will see a clear improvement on the inventories. Accounts receivable, it's more on the customer mix, and it's not nearly as big part of the impact as our inventory. We have consistently taken a decision of having a little bit buffer due to the challenges on the global supply chain. We do see that it will slowly stabilize again in the market. I do believe that we will be able to improve. Also maybe to add to that is something that based on the decision, what we did last year and the work what we did last year and continue this year, we have been able to maintain the networking capital as a percentage of the net sales at a very competitive level. That's clear. Maybe a broader question on the pulp market, as there has been indications of price drop in the global pulp prices. If the situation continues, should we expect these lower pulp prices become visible already towards year or end, or should this take place only in 2025 on your P&L? It depends, of course, how quickly that will materialize on the market prices. What is then the sort of lead time? It's usually like a one-quarter lead time or so, and after that, we will start seeing it. The inventories for us, yes, little bit up, but then again, the turnaround is rather quick. It's rather that it's a lot of pulp producers are shipping it from the longer term. I would say that there's roughly one quarter of a delay or one quarter plus one month, depending little bit on the inventory levels. That's roughly the cycle there. This is of course, interesting. We have seen estimation on the both directions, so it's interesting to see which direction it will start going. Okay. As a reminder, we have a quite a big part of the business indexed prices on the customer prices. On certain timeframe that will come on the selling prices as well, or reflect on the selling prices. Exactly. Maybe last question, interesting investment decision on Alicante. Should we read this as a positive demand outlook for medium term? Can you maybe just remind us of the market capacity situation currently in Europe? Maybe I can take this so that in order to look at the sustainable products, we are the front runner of developing the sustainable products in both markets, so that if we look at EMEA and also in Americas. Of course, our recent investments in North America, now in Europe, it is actually just driving the same thing, is something that there is ongoing, these chains of the Green Deal. Everybody's keen on sustainable products. This is, of course, something that once we go forward, this is the way where we pace. This has been the cornerstone of our strategy in order to drive these more sustainable products. These more sustainable products will grow faster, and they will generate a little bit better profitability for us once going forward. This is a big difference on the products what we currently supply to normal customers, mainly based on the mixture of non-plastic fibers with non-plastic fibers. Of course, that portfolio most probably is going to a little bit decrease, and that's the area where there is the most competition because there are many products with some me-too products, and we want to differentiate ourselves on the marketplace with this. Okay, thanks. That's clear. Thanks. That's all from me. Thank you, Joni. Very good questions. Thank you. The next question comes from Joonas Ilvonen from Evli. Please go ahead. Hi, it's Joonas from Evli. You already touched upon many questions I had, but maybe if I can just continue on the raw materials price question. Pulp prices, like you discussed, they have been increasing a bit earlier this year and maybe now stabilizing. How do you see, other than pulp prices, these oil-based raw material prices? Do you have any feel on those? I guess they have been rather more flat this year so far than pulp prices. Pretty much, yes. The main change that we have seen other than that has really been driven by the possible increases on the logistic costs, which was the case especially during the time that there was instability in the Red Sea area, and that was reflecting a little bit wider scale on the logistic cost. Other than that, I would concur what you just mentioned. All right. I think you also kind of implied that America's volume development in H1 was more or less what you expected. Have you seen any changes? When you think about H2, they have all these seasonal campaigns there during the autumn months. Any updates on that outlook in the U.S.? Mainly what we can mention, which was already discussed in the earlier quarterly reviews as well, it is something that in order to look at the market a little bit, that it tends to be so that if in demand-wise, the second half of the year typically is a little bit stronger than the first half of the year. In this respect, it is something that market-wise and demand-wise, we expect that actually it's looking okay. We can't yet say that is it going to be higher or lower, I would say that based on this, the situation is normal once going forward. Expectations are that we would continue roughly at this pace. Right. Thanks. That's all from me. Thank you, Joonas. There are no more questions at this time, I hand the conference back to the speakers. Thank you. There are a few questions in the chat. First, let's start with the first three questions from Pauli. I'm going to start with the first one. Was the positive mix impact larger than the negative impact in pricing? This is a good question. Excellent question. In order to look at that, the net in order to look at that at the moment, we could say that because the new products are growing faster, once you have 37% of the sales at the moment, I would say that the new products are roughly, if you look at that percentage, I would say that it is slightly lesser than the impact of the negative ones. Of course, our aim is to improve the product portfolio mix, and also in certain areas, also the customer mix. Typically that process is somewhat slower, and it depends little bit about the capabilities, how quickly you are able to speed up and build up the capability for the new products. Yes. The second question, are you expecting the price component to turn positive in Q3 already? This is now quite a bit tied with the topics we have been discussing here already earlier in this call. Raw material prices and which direction that market is going, because that is driving directly the prices. I was expecting, I think that this was asked during the previous call, and I was expecting that during the summer months, we would see the kind of shift that direction. Now the main question would be that which direction this pulp and fiber prices are heading in the market. I'm leaving a little bit on the air and depending on that. If they would start increasing, then I would believe that that is the case. If not, then we probably remain roughly on the same level or a bit lower. We'll see. Then, of course, on top of that are the internal commercial actions, commercial operational actions, what we have into place where we have been able to state that we have been slightly improving our sales margins. That's correct. Then the third question. Given the large investment to Alicante, are you expecting your CapEx to be above depreciation in 2024 and/or 2025? Yes. I would say that we announced also this Bethune bit smaller investment earlier. With that, I would say that likely our investment or CapEx will be a bit higher than the depreciation during 2024. Driven by this Alicante investment we just announced this morning, yes, 2025 will be higher than the general level of depreciation. Answer is likely in 2024 and yes in 2025. Yes for the both. Yes. There are two questions from Markku Moilanen from Nordea. The first question is in two parts. In Q2, the sales development was flat in EMEA. How do you see the demand environment developing in the EMEA region in Q3 to Q4? If you compare the ongoing Q3 to Q2, how would you comment on the development? Okay. two parts of the question. Let's start first looking at a little bit EMEA. We need to separate that once we talk about the market, once we talk about the sales, what we have in our sales. Like we told, the market is normal. We can't say that it's not too positive. There is no headwind. There is no tailwind. The market situation is tough. Based on that, of course, depending a little bit what the competition is also doing on the market, we are a little bit dependent on that. Which is of course very good because a big part of our sales is order committed because we have the deals with the big customers. In order to look at that, it is something that once we look at, it is a very natural development of our sales based on the activity what we have in the new product releases and the activities what we have our customers. It would be very difficult in order to compare, I would now say that the situation is normal, I could even say that it is expected to continue like this till the end of the year. Yes. Then the second question, how will you finance the Alicante investment? Yes, this is of course a relevant question. If we take a look of the balance sheet, our cash position, basically net debt position has been fairly strong, but at the same time, understandably, the EBITDA is of course the key. We need to continue the gradual development. I would say that even speed up the next steps and stepwise the improvement. We already discussed a little bit on this net working capital, we need to be able to free up and monitor that and control that on very efficient way. I would say that that's really the main items they're impacting, and that is really the own money that we are looking right now for this investment. Okay. There is no more questions in the chat. Is there more questions from the lines? As a reminder, if you wish to ask a question, please dial #5 on your telephone keypad. There are no more questions at this time. Okay, before we close this session, I would like to remind that our Q3 result is published on November 6th. Thank you for joining, and have a nice day. Thank you all. Bye. Bye. Bye-bye.