Good morning, and welcome to Tokmanni's third quarter result presentation. My name is Mika Rautiainen. I will present in the beginning the highlights and result for the third quarter, and afterwards Tokmanni CFO, Mr. Markku Pirskanen, will give you a deeper analysis on the third quarter figures. It's time for questions. Let's start. Tokmanni third quarter sales and result continued to increase. Sales continued to grow well on top of last year's very good growth. Something very important for Tokmanni was this launch of Tokmanni customer loyalty program called Tokmanni Klubi, Tokmanni Club. We launched the program or the club in August, and I'll come back a little bit later on this one. As you know, the global market situation is exceptional at the moment, and also price inflation in Finland has started. Tokmanni, however, maintained the low price level, despite the increase in purchasing prices. Comparable EBIT improved, despite the cost pressures, and basically all preparations for Christmas season have been progressing in an excellent way. Availability of the products for the most important season at the moment is on a very high level. The key figures for the third quarter, so the revenue grew by 7% and like-for-like revenue grew by 5.4%. Comparable gross margin was 34%, exactly the same as last year. I'd like to explain this one a little bit more carefully. Basically, we gave all the registered customers in Tokmanni Club 10% discount for their purchases and some excellent deals as well. At the same time we had to keep in mind that Tokmanni is the leading discounter in Finland. We could see price increases in the market already, actually quite a lot, but we kept a low price level. At the same time, we were inviting our customers to join Tokmanni Club, so we didn't wanna do this that we at the same time increase our price level. This was basically, it showed very well here in the gross margin. It was lower, than of course the targeted gross margin, but we felt it was the smart thing to do. The comparable EBIT was EUR 26.1 million, 9.3% of revenue compared to last year's 9.2%. Cash flow from operating activities amounted to EUR 12.5 million. Earnings per share was EUR 0.32. The first three quarters for the year 2021. Revenue grew by 8.2% compared to last year's 13.2%. Like-for-like revenue 7% growth compared to 11.8%. With comparable gross margin, a slight increase to 34.1% compared to last year's 33.7%. Comparable EBIT amounted approximately EUR 10 million better, compared to last year's EUR 54.9 million, so it was EUR 65.2 million, basically representing 8.1% of revenue compared to last year's 7.4%. Cash flow from operating activities amounted to EUR 51.9 million, and earnings per share EUR 0.80 compared to last year's EUR 0.63. Couple of words about the Tokmanni Club, Tokmanni Klubi as we call it in Finnish. Basically the purpose for our customers is to offer personalized offers and best deals, of course. But the meaning of Tokmanni Club for Tokmanni, it was actually also part of our strategy. The Tokmanni Club actually gives us a lot better understanding on our customers' needs and behavior. We feel that we will be getting some efficiencies through this customer loyalty program. It will help us to act smarter with basically on our buyings and orders from our suppliers. As mentioned already, we gave a 10% discount as a registration benefit and of course some fantastic deals. Basically our target was 500,000 customers joining our club during this year. We've reached already this level, so it has been very successful. According to the first insight, obviously it's only a short time period, but still club members' average basket and the number of visits are on much higher level, which of course w as the original purpose for the customer loyalty program as well. It is working according to our plans. Of course, in the future, Tokmanni Club will give its members new benefits and services, meaning that the start has been okay, and now we will also continue with all the developments. Of course, something about the Tokmanni online business. During the third quarter, the online sales increased by almost 65%, compared to last year's very strong growth figures as well. Well, we all need to keep in mind that it's still a quite small portion of the total revenue. For the third quarter, 1.6%, and for the first nine months this year, 1.7%. Basically what is very interesting for Tokmanni is the sales mix in our online is clearly different from the sales mix of brick-and-mortar. So, basically it's we sell in Tokmanni online products with clearly higher unit prices such as outdoor furniture, barbecues, air conditioners, jacuzzis, swimming pools, ski boxes, and especially right now when the season starts for especially selective cosmetics. These are clearly different from the sales mix from our stores. Everything looks very good actually at the moment for our online business, and we're ready for the high season, which is obviously Black Friday and Christmas season. Here's a graph from Finnish Grocery Trade Association, and as already mentioned, we wanted to maintain the low price level in Finland because Finnish society has been opening basically after a little bit lower pandemic figures and people are basically spending their time and money to social events, restaurants, sports events, and so on. If the market is not growing as much, we need to gain market share. I'm very happy that we were able to gain market share again during the third quarter even though if you look at the figures from third quarter in year 2020 we were taking a huge market share compared to our competitors. We were very satisfied with this development. A couple of words about the international sourcing markets from Tokmanni's perspective. In the beginning of 2021, global demand especially in Tokmanni's product categories was on a very high level and growing very strongly. Consequently, the demand for transport capacity, whether it's containers, sea freight, port capacity, or fuel, increased. Everything was basically increasing. Some of the price increases were extremely high, especially containers, for example. At the same time, the prices of many raw materials started to rise sharply. Some of them are still increasing the raw material prices. In addition to this, to all of this, China, for example, introduced a dual control energy consumption policy only a month or so ago. This has been affecting basically the whole society, but also factories and product plants. At the moment, it seems that the demand for production capacity and sourcing prices are at their highest levels. This is at least how we see this. Some production capacity or even some buying prices are not even available at the moment, which is a very strange situation in the market. Now, if we look at the Tokmanni sourcing, we've made basically some very good agreements with our partners regarding the transport capacity and freight rates, and we've been successful with securing the sufficient rates basically for imports from Far East. With the help of our Shanghai office, the deliveries of the seasonal products have been done earlier to ensure product availability. Basically, we have the whole Christmas season products in Finland already, and actually by the end of the year, we will already get a large part of our spring season products to Finland and most of that before, for example, the Chinese New Year, which will take place in the beginning of February. Inventory-wise, well, transport capacity, freight rates. From our point of view, we're in a very good position. At the moment, the timing for future purchases, so when we have the Christmas season already in and spring season coming in, then we're talking about basically next year's fall, Christmas, even the beginning of 2023. All this timing for those purchases and orders, they're particularly critical because the price and production capacity keep changing on a daily basis. Some of them even on an hourly basis. We need to be very careful with that, and that's exactly what we're doing. Actually, no rush at the moment. We believe that production capacity, sourcing prices, and transport capacity will begin to normalize during 2022, year 2022. At the same time, we're all the time keeping in mind Tokmanni's most important mission, which is offer our customers the lowest price level in Finland and therefore, we monitor basically the competitive situation and prices at the moment daily and of course react according to the changes. Here was just a short recap on the situation when it comes to buying and sourcing and the supply chain. We feel we're on a very good position with this, so it's of course very good for the business. We'll move on to Markku's analysis on the key figures. Markku, please. Okay. Thank you, Mika. You're welcome. Good morning from my side also, let's look at financials a little bit deeper. Let's start from revenue. First of all, when you see this graph here, just saying same method goes forward. Basically the three on left, three bars on left side, they are quarter-based, and the three bars on right-hand side, they are cumulative figures. Basically going through the revenue first, we have to say that we are satisfied for the growth what we achieved during Q3, especially when we think how strong the growth was last year. Last year we managed to get 13% growth, and now this year the growth was 7%. That was a good achievement for us. When we look what kind of product categories we have managed to sell well, we can say that during Q3 and also cumulatively the same product categories have managed well. Basically leisure, home, electronics, apparel and garden products. Looking these figures in euros as you seen in the graphs, we have achieved, for example, during Q3 now EUR 20 million increase in our revenue and even last year's EUR 30 million addition, so that's good achievement. As I have told many not many times, but sometimes, it's always balancing the sales and also gross margin. What we want, sales or gross margin? We are trying to balance it. Now when we look at Q3 2021, basically there were two things which were supporting our revenue: the launch of Tokmanni loyalty program and also the decision that we didn't raise our prices and we kept the low price level even the purchasing prices were increasing. Of course, as said, it's always balancing the revenue and gross margin. We achieved a good revenue, but it has some effects to our gross margin. The launch of customer loyalty program and the discounts which we gave to our customers, that of course affected negatively to our gross margin, but at the same time we have to say that it's clearly the investment for the future. Other thing, this decision to keep the prices, it of course affected negatively to our gross margin. On the other hand, we have other things which supported our gross margin. We were able to increase the share of private labels and direct imports during Q3 and also cumulatively. Let's look at those figures a little bit later. Now looking at the actual margins during the quarters, 2019, we were at the level of 35.4%. Last year, when we have some challenges with our apparel, it dropped to 34%. Now during 2021, we were at the same level, 34%. When we look at cumulatively the figures, now we achieved a level of 34.1%, which is 0.4% more compared to last year, 33.7% figure. As mentioned, to increase the share of direct imports and private labels, that support our gross margin, and it's our strategic target. Now looking how we have managed there. Direct import during Q3 from last year's 26.4% up to 27.4%. The same trend also when we look for cumulative figure. Product labels managed by Tokmanni, which are basically the private labels mostly, now 32.1%. Last year, 31.3%. 0.8% higher level, and cumulatively the same thing. We are progressing on that segment, clearly. Operating expenses. Here I took four years' development to show clearly how we got a better picture how we have managed during the last four years' time. Starting from Q3 2018, 20.6% down to 19.7%. Last year, 18.9%, and now at the level 19%. About the same percent what we had last year, and cumulatively about the same kind of trend. We have to say that when we are looking a little bit longer period, we have developed very well on that side. Looking at the Q3 expenses, the biggest part on operating expenses are the personnel expenses. During Q3, it was EUR 30.8 million out of this EUR 53.3 million. If we look relatively, now we achieved in personnel 11%. Last year it was 10.7%, so last year it was a little bit lower level. When we take into account this pension reduction what we had last year, this EUR 0.8 million, we can say that we were about the same level in relative personnel expenses. When we think that we have these salary raises also during this year, which affected 0.4%, we have managed a little bit to develop our efficiency when we are looking at our personnel expenses. To sum up, comparable EBIT. Despite some pressures on our gross margin, we still managed to improve our EBIT. Looking at the three years' development from 2019, from 21.9% up to this year's EUR 26.1 million. Sorry, EUR 21.9 million up to EUR 26.1 million this year. When we look at the relative figure, this year 9.3% compared last year's 9.2%, which are a little bit lower level compared to 2019, which was 9.5%. Still, the euros are clearly more. When we look at the cumulative figures, we have managed to improve our euros very well. This year EUR 65 million, and last year roughly EUR 55 million. Relatively again, clear improvement from 5.8% up to this year's 8.1%. Balance sheet, financing, and cash flow. When we are looking at our balance sheet, it's clear that the inventories are the biggest part there. This year's global market situation has been, as Mika told, very, we can even say confusing, but anyhow very difficult. This year we have made a decision to take the products into our inventory very early. That's a clear explanation why our inventory levels are now on a higher level at the end of September 2021. When we are thinking the year-end, it's most probable that the inventory value will still be on a high level because the spring products are coming also earlier. Of course, during the springtime, the working capital will be released when the products are sold to our customers. The other reasons for increasing the inventory value are clearly the acquired TEX stores and also the business growth. Cash flow during January-September time period, now EUR 51.9 million and last year a little bit more, EUR 61.5 million, and the clear explanation why we are a little bit lower level on that one is this inventory development. The ratio of net debt against the comparable EBITDA, we are on a good level, 2.0x, and last year, 2.6x. Let's look at the net capital expenditures, so clearly the investments. For Q3, we ended up EUR 9 million compared to last year's corona time, very low, EUR 2 million. The clear explanation why we are on a higher level is this acquisition of TEX stores. Now we are expecting that the whole year's investments will be on the level of EUR 20 million-EUR 22 million, and this figure is including this acquisition of TEX stores. After Q2, we announced the level that this investment level will be from EUR 16 million-EUR 18 million, and that figure didn't include these TEX stores. Basically the change there are roughly these TEX stores. Couple words about our consideration of expanding the Tokmanni logistics center. They are still ongoing. The market situation on building a business, it's very hot at this moment, and of course it is very good to make the good feasibility studies and consideration before making any decision of this kind of big investment. It's still ongoing process. For Mika, still the speech. Thank you, Markku, for a very good analysis, and please don't go too far because we'll have the questions next. Before the questions, the outlook for 2021 for Tokmanni. Basically the message is clear. We're gonna be sticking to the previous outlook for this year, which basically is Tokmanni forecasts revenue growth for 2021 and group profitability measured in euros, meaning comparable EBIT is expected to improve and to be from EUR 105 million to EUR 115 million. That's it. Thank you very much. Operator, now it's time for questions. Markku, please join me. We have a question from Nicklas Skogman from Handelsbanken. Please go ahead. Your line is open. Yes. Hello, good morning. Hi, Nicklas. Hi. Hello. My first question is on the gross margin and how much of the implied headwind comes from the loyalty program launch and how much is due to the higher input costs basically growing faster than your retail prices? I guess we haven't clearly said how much, what is the exact effect of the Tokmanni Club, but let's put it this way. It was quite a lot because, you know, like, it was a little bit more popular than we actually even thought. It's a big part is with Tokmanni Club, but I guess we haven't told exact figures like. No, we haven't. It's clear that both have a clear impact. Yes. Yes. Okay. Slightly more for Tokmanni Club than perhaps for the other pressure. How do you think about it? I mean, I would assume that the input cost pressures are sort of really starting now in Q3 and are only expected to get worse. Since you didn't raise prices to compensate for this now in Q3, how do you think about, you know, Q4 and at least the first half of next year? Yeah. Well, obviously we've seen already higher prices from our competitors. Like I explained earlier, it felt very difficult to start maneuvering with our low price level when we invited people to join Tokmanni Club. Yes, we've seen our competitors with raising their selling prices and we're basically monitoring that daily. We haven't really reacted strongly on that because we definitely feel that at the moment it's also about the market shares. When people's money is also going to, as mentioned, to different kind of social sports events, restaurants and everything else, then of course it's very important to stick to the low price level. Yes, there are. I would say the change is global and of course Tokmanni will also follow that very intensively and so on. Markku, is there something you would like to add? No, I think so. That was a good answer. Yeah. Okay. Okay. I mean, I read that as you will eventually be starting to compensate for this higher input costs. Q3 wasn't a very good quarter to do so because of the launch of the loyalty program. Do you already now want to sort of flag pressure in the coming quarters from the higher input costs or do you think you'll be able to manage them? Well, obviously for Christmas season, also for the spring season, basically all the purchases are especially for the seasonal products, they're already done. A big part of the products are already in our warehouses, or they're, you know, like, on their way to Finland. Of course there is pressure on the prices. Well, Nicklas, maybe you can understand that for a discounter, for the company who's having the lowest price level in Finland, it's always extremely difficult to say that we would be raising our prices. Yep. Of course we will. Okay Monitor that very, very carefully. All right. I'm thinking if your competitors are raising prices, then maybe it's easier for everyone else. You have started to see some price upward pressure in the retail, on the retail level generally in Finland, right? Of course, that's very clear. Basically, starting from the freight costs and so on and of course the higher raw material prices, obviously that's affecting the market. Yeah. If I can add, it's absolutely clear that the companies have to raise the prices as a common level set. Of course, the question is always also about the margins what companies are making. It's clear when your purchasing prices are increasing for some day you have to make the changes also your selling prices. That's fact. Of course, the competition situation is affecting, and different companies are timing that changes, price changes in different time, and it has a clear effect how the prices will develop in the future. Okay. My last question is on now looking ahead. As I understand, Finland reopened early October. What's the early impressions from the restrictions being lifted? Are you seeing a normalization of consumer behavior or is it still a bit pandemic influenced? Good question, by the way. During the third quarter, it was still, you know, like the restrictions and also the advice from the authorities, they were not exactly very clear and it showed with our customer behavior. Usually if there are restrictions, I think that Tokmanni customers will or they Tokmanni customers have been reacting very well according to the advice and maybe a little bit less visits in the stores, but at the same time, much higher average basket. There was a lot of changes during the third quarter with this behavior depending on the message from the authorities and that they were not always very clear, unfortunately. At the moment, during this, the beginning of fourth quarter, we can already see that, the customer behavior is, normalizing, again. Hopefully, there won't be any, let's say, third or fourth wave, anymore. All right. Perfect. Thank you very much. Thank you. Thank you. Thank you. Just a reminder that if you would like to ask a question, please press zero one on your telephone keypad. We have no further questions, so I will pass back to the speakers. Okay. Thank you very much. Everybody, you're more than welcome to do your Christmas shopping in the Tokmanni stores in Finland. Thank you very much. Thank you.