Kamux Oyj Stock

Good morning. My name is Katariina Hietaranta, and I would like to welcome you to Kamux's Quarter 2 results webcast. Our CEO, Juha Kalliokoski; and CFO, Enel Sintonen, shall present the results first, after which we shall have a Q&A session. [Operator Instructions]

Please go ahead, Juha.

Thank you, Katariina. Good morning. Let's get started. Here is our agenda for today. As usual, we will begin with an overview of the quarter. Then take a look at the market development before looking at each operating country separately. Then Enel will present our financial development in more detail. And as usual, we will finish with a Q&A session.

There was a significant shift in demand between powertrains in Q2, affecting especially demand of diesel cars. In this situation, we focused on inventory turn. We were able to grow both the number of cars sold and revenue, while the market declined in all operating countries. However, we tightened as the selling prices of diesel cars decreased due to the low demand. This led to gross margin decreasing from EUR 24 million to EUR 20.8 million, mainly due to the lost margin in diesel cars. Even though our costs were EUR 0.8 million lower, this was not enough to keep the adjusted EBIT at the last year level, and it decreased to EUR 0.6 million. Revenue from integrated services was EUR 12.8 million, which is 5.8% of total revenue.

Our customer satisfaction was again at an excellent level. NPS for the whole group was 66 in the quarter. Towards the end of the quarter, consumer confidence started to improve. However, this was not yet visible in used car sales. The used car market contracted during Q2 in all our operating countries. Sweden was down by 1.4% and Germany by 3.2%. In Finland, the total market was down by 2.4% for the quarter. Within the quarter, especially May was very, very challenging. In Finland, the market declined 7.2%. The good news of the quarter was that we reclaimed our position as the largest seller of used cars in Finland in terms of number of cars sold. This applies to both to the quarter and the first half of the year. In Sweden, despite the difficult market, our volumes grew and we gained some share -- and in Germany, where the market also contracted, our share remained small.

In terms of new car registrations, the number of new car registered across Europe grew by 5.7% during the first half of the year. There were some changes in the showroom network during the quarter. We decided to tighten our showroom network in Germany and closed 2 showrooms in the Hamburg area. Ahrensburg and Stade were closed at the end of June. The cars and salespeople from these showrooms moved to the Nedderfeld showroom. There were no changes in the network in Finland and Sweden. We evaluate our network continuously to check it against current and future capacity needs. Thanks for the short-term nature of our lease agreements, we are able to make changes in the network relatively flexible.

Now we will look at each country in turn. In Finland, the number of cars sold during Q2 was at last year level. Average prices were slightly lower, and therefore, revenue decreased 1.4%. Our focus was ensuring sufficient inventory turn. The weakened demand of diesel cars had a significant impact on sales prices and thus margins. We are not satisfied with the penetration rates of integrated services, which have decreased. The penetration rates for integrated services decreased. Customer satisfaction on the other hand, is an area where we continue to do well. In Finland, NPS for the quarter was 68. And for the month of June, it was as high as 70. Here are some recent examples of our marketing activities in Finland. At the end of May, we had an advertise on the front page of Helsingin Sanomat, telling about the high Net Promoter Score and recommendations we had received in Finland.

Kamux Finland has also been the official advertising partner for MTV's World Rally Championship broadcasts. This partnership included a strong presence at the World Rally Championship event in Jyvaskyla with Kamux branded vehicles. In Sweden, our performance was relatively good, and we are getting back on track. However, there is still a lot to do. The Swedish market also contracted and competition remained tight. The Swedish krona declined during the quarter, impacting sourcing inside the Swedish market negatively. We were able to grow, however, and the number of cars sold increased significantly, getting closer to 2024 figures. There were headwinds with the declining demand of diesel cars in Sweden as in all our markets. However, thanks to the volume increase, external revenue grew by 40% and gross margin also grew.

Penetration rates of insurance services and Kamux Plus improved. Niklas Eriksson has now been heading the team in Sweden since early April, and it has been good to see how he has taken ownership of the business. And the team is working well together. In Germany, we continue to have challenges. However, we continue to focus on inventory management and operational execution. The market contracted also in Germany. The headwinds against demand and pricing of diesel cars affected our German business even stronger than in Finland and Sweden. Even though sales of used EVs is increasing in Germany, it is still a very small part of our business. However, the number of cars sold in Germany grew. The average price of cars -- sold cars was lower than prior year as planned. And thus, the revenue growth was at 15%.

Adjusted EBIT decreased as a result of the low margin of diesel cars. As mentioned earlier, we closed 2 showrooms at the end of June, centralizing our Hamburg area operations in the Nedderfeld showroom.

And now I hand over for Enel more details in figures. Here you are.

Thank you, Juha. And summarizing our financial performance in the quarter, Juha already referred to many of the numbers. So sold volumes and revenue grew, and growth was generated in Sweden and Germany. Sudden shift in demand for different powertrains urge us to accelerate inventory turn. That was a choice we did. And that required us also to adjust pricing, especially for diesel passenger cars and also hurt our margins. It was the single biggest reason for decreased profitability, breaking the trend of 4 consecutive quarters of improved margins. In Sweden, a number of financial ratios, sold volumes, revenue as well as gross margin improved. Our work on business fundamentals and daily operating practices started to show also in financials. In Germany, volumes grew. However, profitability continued to be at a low level, and we relentlessly continue working on with the solutions and with the improvements.

Inventory management continues to be our profitability. And throughout the year, inventory levels have solidly followed seasonal cycle. Inventory turnover in days show improvement. When we look at the operating cash flow, it reflects most part inventory cycle. Cash released from net working capital was EUR 12.3 million to comparable period. Our cash balance at the end of the quarter was EUR 8.8 million, and we have EUR 15 million available unused credit facilities. Net debt was very much lower compared to last year, and it is now EUR 49.5 million level. Equity ratio was close to 50% level.

And here are our key numbers. As said, revenue grew, gross margin declined. All major categories of operating expenses declined compared to previous year. And return on equity and equity ratio improved slightly. Looking at the figures, when we had a market of sudden shift in powertrains, we turned our focus into inventory turn. We ensured right size of inventory and solid financial position. We can see here trend in volumes. Volumes increased in the quarter, driven by focus on inventory turn, as I said. And you can see here the growth in Sweden and Germany were substantial. Finland was at the previous year level. However, we, of course, every day remind ourselves that our volumes a few years back remind us of the capabilities we have and also the ambition to go back to growth continues to drive us.

Our integrated services revenue declined slightly and the slight decline spread -- it was spread across different services. Here, we can see revenue trends from quarters and recent years and drivers of the trends were underscored earlier. And we, as said, firmly focused to regaining volumes and improving profitability. Cash flow, minus EUR 10 million in H1, and it was seasonal buildup of our inventory that was the key driver. And we can see also here the inventory increase about EUR 20 million, affecting the cash flows. We are satisfied that we both started and also closed the quarter with a size -- right size of inventory.

Our outlook for 2026 remains unchanged. We expect adjusted operating profit for 2026 to increase from the previous year.

And back to you, Juha.

Thank you, Enel. Our long-term targets are still the same. However, we have started working on updating our strategy. And as part of the work, we will also review our targets. We will be getting back to these towards at the end of the year. We continue to perform well in customer satisfaction and have achieved our target. For Q2, the group NPS was 66, which is excellent. eNPS is at 19 as it was also in Q1. Here is our current management team. Tuuli Kiiski joined us last week as Chief People Officer. Tuuli comes from the Suvia Group, where she was working as an HR Director and a member of the management team. Tuuli has a strong track record in developing and leading HR functions in multisite organizations. She is also experienced in developing supervisory work and building and implementing consistent ways of working with employee well-being as a priority. So I believe that Tuuli is a very good addition to our management team.

Our ongoing focus areas remain the same, except with even more focus on inventory turn and health. There is still a lot to do, and we continue to work on these basics on a daily basis. Our vision also remains unchanged to become the #1 used car retailer in Europe.

And now it's time for questions.

Thank you, Juha. Thank you, Enel. So said, we shall begin with the questions via the teleconference line.

[Operator Instructions]

The next question comes from Maria Wikstrom from SEB.

Yes. This is Maria Wikstrom from SEB. I have 3 questions, and I'll take them one by one. I'd like to start with your guidance for this year that what makes you confident that you are going to reach an improving adjusted EBIT for the year when you are currently EUR 1.3 million behind last year?

Yes. So thank you for this first question, Maria. Our view is based on our current estimates. Obviously, Q3 has a very important part to play in being in the outlook and reaching our outlook, but also very important to -- when we go to Q4 that we are -- we go with the right inventory with the right mix with the right capacities. So this is very important. Also, when we look back last year, H2 was EBIT unfortunately, was also historically at a low level. So we keep our estimates and also when we look at certain trends here, we are keeping our guidance outlook unchanged. But we -- of course, a lot of work is to be done and the actions also.

And my second question is a bit more on the -- like the inventory positioning. As to me, it shows a bit that every time when there is a shift in consumer preference in the market, Kamux's inventory ends up being on the wrong end of the -- or how would I describe it, the inventory is not optimal, I mean, for the current customer trends. And yet you have very short inventory turnover cycle. So you would think that you could adjust your measures quicker than it actually shows in the profitability. So can you a little bit describe what have you now done in your inventory management when you have seen that there is less demand for diesel cars and with the lower pricing that do we expect to see improvements then already on the Q3 onwards?

If you look back many quarters, what we mentioned with Enel that we focused on profit level -- margin level per car. And when this Iran war started and we saw how much the demand for the diesel cars decreased and the inventories increased, we made decisions. Now we changed our focus. It's more important to push the inventory out those diesel cars and take less margin compared -- the other option that you are waiting and wishing at some point after some months, the diesel car demands are and prices are going up and you get more margin. And this was the reason why we focused a lot of the turning the diesel cars down.

Now -- and what happens, for example, in Finland, the level was 8,000 used passenger cars, diesels available in Finnish market, and it increased over 12,000 units. It means 50%. And at the same time, happened this demand went down. But now we see that the demand went up and also the diesel car levels available cars are coming a little bit down.

And one follow-up on that answer that if you describe -- could you describe that how has your metal margin per car developed month by month over the Q2?

I think that we didn't open month by month. It's quarterly based. But especially May, as I mentioned that in Finland, it was minus 7.2% the total market in used cars. It was very, very challenging month. And compared to Germany, for example, it was April when the market was down over 10%, and those was the challenges what we had in market. And now when we look about the inventories and what happened, I would say that we did -- I do the same decisions what we made in the spring.

And then my final question is that I can see that your personnel count is -- in Finland is down 5 employees. Do you think that there is a risk that it's difficult to get growth in the market when I would think that your sales force is declining at the same time?

Yes. Thank you for this question. So yes, we are down with our employee numbers. But I would like to say that it is -- when looking back comparable period, we had a number of changes and a number of initiatives to more towards stabilization of our employee number and also costs. Current -- what we see currently, it is -- we have very much looked that it is a number of personnel and also cost that it supports our business. So I would say that we have became towards more stabilization in personnel number, turnover as well and also costs. And also to say, of course, we also continue working with that. So personnel is something. But I would say that a number of personnel is not something that would, how to say, reject growing or would make growing more difficult. So yes...

And if I continue shortly, we focused on also very lot on heavily to helping our employees as the sellers to sell more, how to sell more products per person. And also the demand in the company increased.

I have no further questions.

I believe we have some further questions from the teleconference line.

The next question comes from Joonas Hayha from OP.

It's Joonas Hayha from OP. First of all, you mentioned the diesel cars being particularly problematic during the quarter. But if we exclude diesel cars, how did the metal margin develop in other powertrains versus last year?

We haven't really published by powertrains. But what we've said is that the decline in diesel margins is the single biggest explanation for the decline in gross margin and metal margin overall for the quarter.

Yes. And then when we think about the group level, when the Germany and the Swedish business increased and there, the metal margin -- or gross margin is lower level, it pushed down the whole group as a gross margin side.

And then secondly, regarding the Swedish corporations, your earnings there improved in the first year with higher volumes. How would you comment the outlook for the second half? How do you expect earnings to develop? And how do you see the long-term profitability outlook in that market?

I can take this question. Thank you for this question. We are not disclosing markets separately, but maybe something I can tell that we -- we have worked a lot on fundamentals in Sweden, also working practices and strengthening our own performance. So our market position, I think that we first need to look what we do. The market is not, how to say, restricting us to grow. So it's all about us and doing the better job there. We also -- despite -- we have discussed internally that we see in many ways that we have strengthened the performance. However, we also recognize that we can see volatility there because we still need to -- we need to have more quarters behind us with solid, strong performance. But we are confident with the way of working and Niklas Eriksson taking over as a new Managing Director. We are confident that we are going to the right direction.

Okay. And then finally, just to recap, you have the strategy process ongoing. Should we expect the results to be communicated after Q3 results or sooner?

We believe that we are coming out in the Q3.

Yes, about that time. So you should not expect to have any new strategy information before Q3 results.

That's all from me.

Thank you. So I understand we have no further questions from the telephone conference. So we shall move on to the chat. And we have a question from Rauli from Inderes about the -- whether the -- is the current average selling price level in Germany expected to remain also during H2?

Yes. We focus in Germany on that time, a little bit lower categories. Of course, when we started to increase our EVs part in Q2, very late compared to Finland and Sweden. And if we can be successful in that part, it can be a little bit higher compared to Q2.

Yes. Although, of course, German -- in Germany, the EV -- used car EV, the growth figures are high, but the base numbers are still very, very small, particularly compared to the other markets.

Rauli is continuing on Germany. So what kind of impact do you expect from the store closures in Germany to volumes and earnings?

Thank you, Rauli, for this question. So as I said, we closed 2 stores in Hamburg area. Those 2 stores, Ahrensburg and Stade were very close actually located to our Nedderfeld store. So what we did was that we transferred our operations cars, personnel over this Nedderfeld site. We had overcapacity there. So it was a very good fit and consolidation. We are not disclosing like separately our store performance. However, I must say that what I can say, both stores did not have -- the operations were below -- clearly below the capacity, which means that taking those to a profitable way or turn to profitable was difficult. So both stores were already long-term negative in operating results. So we expect like positive impact, but we are not disclosing like separately.

Thank you. Rauli is further asking, with the tight competition in EV sourcing market, are you able to currently do healthy margins there?

We -- of course, we focus a lot of the purchase channels and looking at where we can make the good business with us. And I don't see the huge problems with the purchase to EVs because those cars are still available and the competition compared to powertrains is not different in EVs.

Okay. Right now, we have no further questions on the chat. So it looks like we're getting ready to close. I'm just sort of trying to hold on if someone is still pushing for further questions, but nothing is coming up. So thank you for today, and I wish everyone a good rest of the day. Thank you.

Thank you.

Thank you.

Good morning, everyone, and welcome to Kamux's Q1 Results Information session. My name is Katariina Hietaranta, and I'm Head of Investor Relations at Kamux. We have today our CEO, Juha Kalliokoski; and CFO, Enel Sintonen, presenting our quarter 1 results. And after the presentation, we shall hold a Q&A session. We shall first take the questions from the teleconference line, followed by questions from the audience here as well as via the webcast chat.

Thank you. Please go ahead, Juha.

Thank you, Katariina. Good morning. Let's get started. Let's take a quick look at our agenda today. As usual, we will begin with an overview of the quarter. Then, take a look at the market development, looking at each operating country separately. Then Enel will present our financial development in more detail. And as usual, we will finish with a Q&A session.

As it was last year, our focus during Q1 was on profitability. We succeeded quite well and gross profit improved significantly despite a negative volume development. Following this, adjusted operating profit improved but was still negative. Cash flow for the quarter was lower than last year. This is directly related to the very different starting position with our stock. We started the year quite a low stock as planned. And towards the end of the quarter, we increased our inventory.

Revenue from integrated services was EUR 12.7 million, which is 6.2% of total revenue. Our customer satisfaction is at an excellent level, and we further improved it during Q1. The group NPS for Q1 was 66 and Finland achieved an NPS score of 70 in March. And when we look about -- under the big picture, we see many positive things behind that. When you look about the gross margin percentage and gross profit per sold unit, Sweden started to increase sold units and revenue. Our equity ratio is 53%. And as you see, we started to increase our inventory at the end of quarter.

Consumer confidence was at a low level in all our operating countries. The crisis and the following increase in fuel prices further affected consumers and their willingness to spend money on big purchases as such as cars. We also saw very rapid changes in demand for different powertrains and the demand for EVs spiked after the fuel price increase.

The used car market contracted during Q1 in all our operating countries. Sweden was down by 5.5% and Germany by 1.7%. In Finland, the total market was down by 1.2%, but the number of cars sold by dealers grew by 1.1%. Disappointingly, as the number of cars sold in Finland decreased, we lost our #1 position. In Sweden, despite the difficult market, our volumes grew and we gained some share. In Germany, where the market also contracted, our share remained small. In terms of new car registrations, the number of new car registrated across Europe grew by 4% during the first quarter. In Kamux's operating countries, registrations grew in Germany and in Finland, but declined in Sweden.

To improve our efficiency in the capital region in Finland, we closed 2 showrooms during Q1. These were the showrooms in Malmi and Herttoniemi as we announced earlier. The showroom in Seinajoki, also Finland relocated to better premises at the end of March. In Sweden and Germany, there were no changes to our showrooms network during Q1 '26.

Now a look at each country in turn. In Finland, the number of cars sold declined by 9.3%. As planned, the average price was lower than last year, and this impacted our revenue. We are satisfied with the gross profit development, but we are not yet at the level where we want to be. Despite a 16% decrease in revenue, adjusted EBIT improved by 24.5%.

Integrated services penetration levels were roughly at the previous year level. I'm particularly pleased with the high level of customer satisfaction in Finland. In Sweden, we sold 16% more cars than last year first quarter. Gross profit improved significantly, but it's still too low. At this level, the number of sold cars was not enough to get Sweden profitable for the quarter. In all integrated services, the penetration rates developed into the right direction. Please note that the calculation method of insurance penetration has been changed. And now we count in only 1-year agreements.

Niklas Eriksson began with us at the end of March and as the Managing Director on April 13. Niklas has a broad experience in the car industry. In Germany, we still have a lot to do, particularly with volumes. The average price decrease was planned, but this naturally affected our revenue. In Q1, gross profit decreased compared to Q1 '25. But compared to Q4 of '25, gross margin developed into the right direction. Our focus at the moment is particularly on inventory turnover.

And now I hand over to Enel to more details on the figures.

Thank you, Juha. And summarizing our financial performance in the quarter. Sales volumes and revenue declined and the drivers were underscored by Juha earlier. We can see that gross profit in total, gross profit per sold car as well as gross profit margin improved and gross margin improved for the fourth consecutive quarter. Inventory turnover, right size and right mix continued to be at tight control throughout the quarter.

And looking at financial performance per country, Finland and Sweden are moving to the right direction. And in Germany, we continue to face challenges noted also by Juha earlier. We work with discipline to turn it. Seasonal inventory buildup started towards the end of the quarter. We started the year with inventory level at EUR 100 million and closed at EUR 110 million. Operating cash flows, minus EUR 7 million, was at most part related to inventory buildup.

Our cash balance at the end of the quarter, EUR 5.8 million reflects that we have not utilized our short-term credit facilities, which are available in total EUR 25 million. Balance sheet ratios improved and are at solid level. Net debt declined to previous year. Equity ratio has increased to 53.5 percentage level and basic earnings per share improved

. A summary of our key financial ratios is presented here. As said, revenue declined, profitability and financial position measures improved. Earnings per share was slightly negative, however, improved well compared to previous year. And as a summary, at the time we continue to have headwinds in volumes, we focused on profitable deals, ensured right size and health of inventory and solid financial position.

Here, we can see the trend in volumes. Volumes declined in the quarter, but less than in recent quarters. Our volumes a few years back remind us of the capabilities we have and the ambition to go back to growth continues to drive us. Our integrated services revenue development was hit by lower volumes, and we are not satisfied with this trend, even though the share of integrated services has slightly increased to total revenue.

We can see revenue and adjusted operating result trends here, and we are firmly focused on regaining volumes and improving profitability. And as said, seasonal buildup of inventory was the key driver of our operating cash flows in Q1. We are satisfied that we both started and also closed the quarter with rightsized inventory. Our outlook remains unchanged. Kamux expects its adjusted operating profit to increase from the previous year. And in April, the AGM decided that a dividend of EUR 0.05 per share will be distributed for the year 2025 and will be paid at the end of October.

Thank you. And Juha, back to you.

Thank you, Enel. So a few words about the long-term targets and our strategy. In terms of our long-term targets, we are doing well with customer satisfaction. The group level NPS for Q1 was 66. And as I mentioned earlier, Finland NPS in March was as high as 70. Both are excellent. We have also made good progress in employee satisfaction and the eNPS risen to 19. This is obviously still below our target, but it's good to see the improvement in the important KPI. On the financial side, we have shown earlier today, we are not where we want to be. However, we are still standing by our long-term targets.

Here is our current group management team. Niklas Eriksson joined Kamux at the end of March and started as the MD of Kamux Sweden on April 13. Niklas has a broad experience in the car industry, and I'm very glad to have him in the team. At the end of April, we announced the appointment of Tuuli Kiiski as our new Chief People Officer. Tuuli comes from the Suvia Group and will join us at the beginning of the August.

This is a reminder of our ongoing focus areas in improving productivity. We continued to work on managing our inventory and ensuring that we have a solid cash position. There is still a lot to do, and we continue to work this on a daily basis. Our strategy remains unchanged, the 2 main pillars being customer satisfaction and operational efficiency. As said, the group NPS has improved to 66% for Q1. We have also progressed in improving our operational efficiency, but there is still a lot to do.

2026 is the last year of this current strategy period, and we will review our strategy during the year. Our vision also remains unchanged to become the #1 used car retailer in Europe. And now it's time for questions.

Yes. Thank you, Juha. Thank you, Enel. We have no questions from the teleconference line, so we'll open directly to the floor here. Thomas, please go ahead.

Thank you for the good presentation. Thomas Westerholm from Inderes. I would start off pointing my question to Juha. Considering how much the market and the competitive environment has changed over the past 5 years, do you feel like Kamux has changed or adjusted its playbook enough to accommodate it?

If you look about the big picture in the European market, what is our goal, and then we look about the country by country. In Finland, 5 biggest player takes about 30% from the markets. And if I understood correctly from the U.S. investor, it's the biggest part compared approximately U.S., there is CarMax who takes 4% of the markets. And in Sweden and Germany, it's not so consolidated the market. And we see huge potential there. And of course, there is coming to companies who lose the game totally. As we saw in yesterday from Sweden, companies are closing and ending the business.

Thank you. And now that more players are focusing on used car sales in Finland, what are the main ways to differentiate one from the rest of the pack?

Maybe the one biggest reason is that the branded dealers can sell so much new cars, and they focus a lot of the used cars. And of course, we have in Finland and Sweden, very big tens of stores, what we have. And of course, take -- as we mentioned earlier, that we focus -- or change [ cheaper ] cars and take our market share there. And it's coming about our KMS, our own ERP system, what we have based on only for Kamux and we own the IPR and we can handle about the customers and our employees and our inventory there. And I would say that it's one big part when we are coming -- going further and starting use with the AI in our system.

Got it. And lastly, a question about profitability. Q1 saw some development in the right direction, but we're still far from what you're targeting. What are the main things needed to happen either internally or externally for you to achieve this needed step change in the level of profitability?

It's impossible to make changes in all different corners. And we choose about the profitability. I mean gross margin, euros -- per gross profit per sold units. And it means that we lost some volume. And as we mentioned with Enel that now we started to increase our inventory, and it tells that we are ready to going forward and start also the growing mode.

Okay. Do we have further questions? Yes.

Jussi Koskinen. I have 2 questions. First of all, have you considered updating those CMD targets. I understand that the period is 3 years, but it would be nice to have such some kind of market update that what has changed during these years. I understand that the big update will be done during this year or released maybe after this year, but how about having such a minor update that what has changed?

Yes, we are coming at the end of this year. We didn't tell what is the time, but in the autumn and tell about when we are updating our strategy, what are the targets for 2027 to 2029.

Then secondly, about -- in AGM, you mentioned that it's about efficiency game. Market defines sales prices and purchasing prices. So what are -- and I believe you have already thought quite well this process, what happens between car purchase and car sales. So can you really find new ways to improve efficiency in Kamux's own processes?

Yes, I really believe that. There is many tens of small things where you can win or lose. It is not only one thing where you make the right decisions, but you must make tens of right decisions between the journey, understand about the customer, what they are -- what is the demand for there, purchase the right cars and the whole track how fast we can go with those processes and rules and deliver the cars to the customers. And I believe that if you think about our average price, it's a little bit more than EUR 14,000 and 1% is EUR 140. And it's still quite a small money, but inside that EUR 140, there is many topics what you can make better.

Thank you. We have a couple of questions via the chat. Firstly, thank you for the presentation. As we saw, you had a huge rise in the Swedish sale. I was just wondering if you could tell us what the biggest reasons are behind in that increase. So volume increase in Sweden.

Yes, the market declined 5%, and we -- our revenue increased double-digit number, 16%, if I remember correct. It's not only coming back to the Kamux concept. following daily basis what we are doing when we purchase and sell the cars and manage the inventory. It's just about that.

No magic. Basic working on daily basis.

Unfortunately, no magic.

Second question. Would it be possible to take an exit from Sweden and Germany and focus 100% on the Finnish market?

Of course, it is possible. But then we must look about our vision to be #1 in the Europe level. And the Finnish market is the smallest one. German's market is 14x bigger compared to Finland and Swedish markets are nearly double size compared to Finland. And we need also other countries to achieve our long-term targets.

Very good. Thank you, Juha. Thank you, Enel. We seem to have no further questions. So it's time to say thank you, everyone, and enjoy the spring day.

Thank you.

Thank you. Have a great day.

Good morning, and welcome to Kamux's Q4 '25 Results Information Session. My name is Katariina Hietaranta. I'm Kamux's Head of Investor Relations. And I'm here with our CEO, Juha Kalliokoski; and CFO, Enel Sintonen, who will present to you the results. Please go ahead, Juha.

Good morning. Thank you, Katariina. Let's get started. Here is our agenda for presentation. As usual, we shall first take a brief look at the market, followed by a review by country. Enel will then dive deeper into the financial development, including our outlook for 2026. She will also present the dividend proposal and the extension in our share buyback program that was announced this morning. As usual, we will take the questions at the end.

2025 was a tough year for Kamux, and obviously, we are not satisfied with the results. Last year was the first year in Kamux's 22 years of history that the volumes and revenue decreased. The reason behind the 13% revenue decrease is a combination of volumes and average price. While volumes were stable in Sweden and Germany, they declined by 10% in Finland. The rest of the revenue decrease came from the lower average price. Despite the decrease in gross profit, gross margin improved to 8.7%. Margins were better in Finland and Sweden.

During this market, we have wanted to ensure that the keys are in our own hands, therefore, focusing on strong cash flow. We have seen that many in the industry have had issues with their cash positions. We focused heavily on inventory turnover and our inventories decreased by 23%, which is 10% more than the revenue decrease. At the moment, we are in a position to start increasing our inventory again towards the spring and summer season.

Revenue from the integrated services was EUR 13.3 million with Kamux Plus at the previous year level. I'm very happy about the customer satisfaction improved throughout the year. Our long-term target is 60 and we beat that in the fourth quarter with NPS at 65. At the year end, NPS was as high as 66.

Despite the disappointing volume development, we maintained our position as the market leader in Finland, selling the most used cars, both in the fourth quarter and over the whole year. New car markets were subdued in Kamux's operating countries last year, affecting the inflow of trading cars. We can already see that the car park of 1 to 5 years old cars is decreasing in all our operating countries, which means even tougher purchasing market. This may lead to higher prices of used cars also.

There were no major changes to our showroom network during 2025. In Finland, our showrooms in Jyvaskyla moved to new purpose-built premises during the last quarter. Earlier in the year, we closed the showrooms in Mantsala and Savonlinna. There were no changes in network in Sweden. We have -- where we had closed altogether 6 showrooms in 2024. In Germany, we opened a new showroom in Schwerin, near Lubeck and Rostock in the Northeastern part of Germany.

To improve our efficiency in the capital region in Finland, we have decided to close 2 showrooms. The Malmi showroom closes by end of February and Herttoniemi by end of March. The cars and most of the sellers will move to other showrooms in the capital area. The Seinajoki showroom will relocate by end of March to better premises.

Moving to comments per country. In Finland, the competition continued tight. Consumer continued to prefer affordable cars, which were not so easy to source, as many dealers were after them. The volume development was disappointing, but the good news is that despite the decline, we maintained our position as the market leader in terms of number of cars sold.

Revenue was impacted by volumes and lower average prices. Volumes were down by 10%, and the rest was due to lower average price. Gross margin developed positively for the third quarter in a row, although margin per car was slightly down. Adjusted operating profit decreased mainly due to volumes. Insurance penetration increased to 66%. The decrease in Kamux Plus penetration rate is largely explained by the lower average prices of cars sold.

Our showroom in Jyvaskyla moved to new premises during the quarter. This is one of the few premises that we own ourselves. Customer satisfaction improved further and was 65 for Q4. On a full year basis, NPS was 62.

And then we will move to Sweden. In Sweden, we have made good progress into the right direction during '25, but obviously, there is still a lot of work to do. The market did not help us in Q4, and our volumes stayed at the previous year level. Revenue decreased as the average price of cars was lower than in the previous year, and fewer cars were exported to Finland.

It's also good to keep in mind when thinking about the full year volumes, that in the first half of '24, we had 6 showrooms more than in 2025. 3 showrooms were closed at the end of July '24 and another 3 by end of December '24. We took active inventory management measures during the quarter, which impacted the margin per car. Despite this, gross margin continued to improve, but gross profit decreased due to lower average price.

Kamux Plus penetration rates have increased quite nicely and the finance and insurance penetrations rates have remained on a good level. Customer satisfaction has developed well also in Sweden, and there is a significant improvement in NPS. It was 56 in Q4 '24. And now in Q4 '25, it was already 64.

I'm also happy to say we announced the appointment of Niklas Eriksson as the new MD of Kamux Sweden yesterday evening. He will begin in the MD role in mid-April, but joins the company a little bit earlier.

In Germany, our challenges continued. In Q4, did a lot of inventory cleaning by lowering prices and selling cars also to the other dealers. As a result, the number of sold cars grew compared to Q4 '24. This was at the cost of the margin, leading to a weaker gross profit and gross margin and also with an impact on financing services. Adjusted EBIT was also affected. The good news regarding Germany is that also in there, our customer satisfaction has improved. NPS for the quarter was as high as 70, and even the full year 62.

And now I hand over to Enel for more details on the figures.

Thank you, Juha. Summarizing our financial performance in the quarter. Sold volumes and revenue declined. And despite slowing decline in Q4, current volumes do not meet our ambition and we continue to work to turn it. Gross margin improved for the third consecutive quarter.

Looking at financial performance per country. Finland and Sweden are moving step by step to the right direction. In Germany, we continue to face challenges, noted also by Juha earlier. And we work intensively and with discipline to turn it to the right direction.

In response to headwinds in sold volumes, we have prioritized the right size and health of inventory. Inventory is adjusted to EUR 100 million level, unlocking a significant amount of cash. Inventory turnover has improved. Right steps towards capital efficiency have been done and will continue.

Balance sheet ratios are at healthy level, net debt is at historically low level and equity ratio is 53.5%. And as a summary, at the time, we continue to have headwinds in volumes, we ensured right size and health of inventory, healthy financial and liquidity position.

Here are our financial ratios. Revenue declined by 13 percentage points and key drivers were underlined earlier. Gross margin was 8.7% and improved slightly. Driven by lower volumes, operating result was negative. Items affecting comparability included termination of CEO contract costs. Adjusting operating result was negative. Inventory turnover, that we talk a lot in our business, has improved and we continued activities to gain further improvements in this area. Equity ratio has improved and is at over 50% level, as said earlier as well.

After this year, volume is our key area to improve. We are looking our financial position. We are better equipped to go for volumes. Our inventory is at the right size and fit. Here we can see trend in volumes. Volumes declined in the quarter, but less than in recent quarters, mostly due to profitability focus and with impact from lower showroom network.

In Q2, we sold about 3,800 cars less compared to the previous year same time. In Q3, about 2,800 cars less. And in Q4, we sold about 1,000 cars less than in previous year same quarter. So the decline has somewhat slowed down.

We can see revenue and adjusted operating results trend here. Looking recent 4 quarters, adjusted operating profit trend was to the right direction in Q2 and Q3. However, low volumes impacted heavily to Q4 results.

At the end of the fourth quarter, our cash position was EUR 18.5 million. In Q4, we paid back EUR 12 million of revolving credit facilities that can be withdrawn later when needed. Cash position and unused credit facilities gives us a good position to build up inventory and volumes.

Our integrated services revenue development was hit by lower volumes. We are not satisfied with this trend, even though the share of integrated services has slightly increased to total revenue. And here is a visual representation on how our net working capital developed. We can see EUR 30.8 million reduction in net working capital, driven by decline in inventory. Our inventory is in a better fit from both structural and price points perspective.

Outlook for 2026. Kamux expects its adjusted operating profit for 2026 to increase from the previous year. And dividend distribution. Based on the dividend policy, Kamux aims for a dividend payout of at least 25% of the profit for the financial year. This year, the result has been negative. However, the Board of Directors proposes dividend of EUR 0.05 per share to be distributed for the year 2025.

In this morning, we have announced also an extension to our share buyback program. The program that was initially launched in November, has progressed well and Board of Directors decided to increase the number of shares to be bought. The new totals are: acquire at maximum 2 million shares, and this means extension of 1 million shares compared to initial launch. The maximum amount to be used for the repurchase of shares is EUR 4.5 million. The program will end April 16 at the latest.

And back to you, Juha.

Thank you, Enel. So a few words about long-term targets and strategy. In terms of our long-term targets, we have progressed well in customer satisfaction, where we have already achieved our long-term target of 60. The group level NPS for Q4 was 65. Our task is to keep it there.

We have also progressed well in terms of employee satisfaction in the last 6 months, and the eNPS has risen to 15. This is obviously still below our target, but an important improvement nevertheless. On the financial side, as we have shown earlier today, we are not where we want to be. However, we are still standing by our long-term targets.

Here is our current management team, to which there will unfortunately be some changes this spring, as Johan and Joanna will be leaving us. We are progressing well with their replacements, however, and we have just announced that Niklas Eriksson will join us in April as Kamux Sweden's new Managing Director.

This is a reminder of our focus areas in improving productivity. During Q4, we worked especially hard on managing our inventory in preparation for 2026 and ensuring that we have a solid cash position. There is still a lot to do and we continue to work on these on daily basis.

Our strategy remains unchanged. In 2025, we made good progress in advancing customer satisfaction in all our operating countries, as seen in our NPS results. The group's NPS improved from 55 to 65. We have also progressed in improving our operational efficiency, but there is still a lot to do. 2026 is the last year of this current strategy period and we will review our strategy during the year. Our vision also remains unchanged, to become the number one used car retailer in Europe.

Thank you, Juha. Thank you, Enel. It is now time for questions. And we will begin by questions from the teleconference, if there are any.

[Operator Instructions] The next question comes from Joonas Hayha from OP.

It's Joonas Hayha from OP. So a couple of questions, starting from the inventory actions in Q4 that you did. Could you provide some additional color on what was the reason? Why did you need to clear inventory? Was it too low turnover or perhaps unsuccessful purchases or what? And how are you expecting metal margins to behave going forward?

When you speak of inventories, it's always so important to remember about the inventory turnover. If the inventory turnover is too low, it means that you are getting all the time old stock, which means losses. And that's why we focused last year to turning the inventory in just the right level, but also that we can achieve our target, the inventory turnover.

And as I mentioned that now we are in a situation that we are possible to increase our inventories towards the summer and spring season. And it's easier to manage lower inventory compared to EUR 30 million higher inventory. And as we saw Q1 '25, what was the impact over there.

Okay. And then regarding operating expenses, those seem to have increased somewhat in Sweden and Germany in Q4. Was there anything specific behind those developments? And can you elaborate the drivers a little bit?

Yes. So I would say that we had very operational Q4 in that sense. So operating costs were slightly bigger in Sweden and Germany. I would say that nothing special in there.

Okay. And then can you update us on your store network plans for each of the countries? You talked a little bit about the plans in Finland, but what about Sweden and Germany?

If you start from Sweden, as we said after Q3 or Q3 presentation that we are -- we have 17 stores in Sweden and we are happy about that. But of course, it can't -- it doesn't mean that we don't change the places where we are or the buildings where we are. And there is possible to use 2,000 cars in our places what we have. It means that we pay rents 100%, but we use capacity only 60%. And we are in the same situation in Germany that we have stores there, and we are not opening the new stores for both of those countries before we are making a profit in both countries. And as I mentioned earlier, it means that we must turn the inventory in the right level and then we can expand our inventories higher.

Thank you, Joonas. There seems to be other questions on teleconference as well.

The next question comes from Rauli Juva from Inderes.

Yes, Rauli from Inderes here. Just a question on your outlook, if you can a bit elaborate more kind of the drivers behind the earnings growth expectation and the volume development and the margin development and what are the measures that will enable those?

What a difficult question, difficult to answer. So as said by Juha, our long-term target remains the same, 100,000 cars. What we have seen in 2025, both operating environment, but also our own operations have seen some challenges. So when looking ahead, we have made a number of steps to improve our own operational daily routines, also putting in place better inventory, inventory in better fit in better structure. So this is why we see that we improve in profitability. However, as seen, it has been tough. And we are -- it also sees in our outlook that we have given.

And maybe if I continue shortly. If you think about the building, you must first -- if there is something broken, you must first building the ground of the house. And we did that in last year in many ways. And now we think that we are better positioned to start to also grow.

All right. All right. Yes, so it's mainly kind of based in your own, let's say, processes or so, so no big changes expected in the markets or perhaps in your market share on the cost side as such?

Of course, we are taking -- as we mentioned about the showroom network in Finland, we are taking off about the property costs a little bit and share the costs and people to the newer stores. And also, we don't believe a big change in the consumer confidence in this year. Of course, we heard something about the positive feedback from the market, but we don't calculate about the big number of that.

That was all questions from the teleconference, if I'm correct. Very good. Before we take questions here from the audience, there's a couple sort of related but perhaps expanding a little bit, particularly on the outlook via the chat.

So questioning, again, the volume assumptions within the outlook. If there's any sort of ideas behind that in terms of unit number or year-on-year growth range? And whether the profit improvement is thought to be more volume-driven or gross margin expansion?

And maybe also related to that, to the guidance is that are there some uncertainties that could prevent us from achieving it? And how should that be interpreted?

So when looking at the -- I will start with the inventory level we entered the year. So we have a much lower inventory level compared to last year when starting there. And this was also our target to enter the market with this level when we -- and this is the base where we start. Our thinking is that we build up volumes and inventory accordingly, but we do it very -- in a conscious way. So no quick fix in volumes in that sense.

So we have been quite, how to say, conscious and cautious with volumes in our thinking behind the outlook. What we still think is what is the right balance between profitability and volumes. We still aim on -- continue to aim on profitable deals, healthy business. So we expect margins to remain or improve in that sense. Anything to add, Juha?

That was a good answer.

Okay. Thank you. I'll take a couple of more questions here from the chat. And there's 2 that I'll try to combine. They are related to the purchasing organization. There's a question that the purchasing organization, is it partly outsourced or 100% in your own hands and with reference to the purchase of webcasts. And then also asking how are the sourcing channels evolving today and whether we expect to have an impact of the sourcing channels in '26?

The purchase side and sourcing side, it's all inside the company, our own employees. You can't outsource that. We have the purchase organizations in all countries with purchase just the cars what needed in the Finnish market, in the Swedish market, in the German market. And then we have the cooperate between the countries and they have the meetings and try to share about the packages, what are the market can we share those or are we interested in Sweden, cars which are in Germany and so on.

And when we speak about the channels, it depends a lot of the market. If we start about Germany, it's very much business-to-business how we purchase the cars. And in Sweden, it's totally different way. Most of the cars, what we purchased, we purchased from the private customers or business-to-consumer business and try to increase about trading cars, and we are improving over there, and it's important.

And Finland, it's the highest rates about the trading cars, over 50%. And we buy locally from the private customers, but also from business-to-business inside the country, but all over the Europe also.

We've been speaking quite a bit about the car park development in countries and particularly in Finland and I believe also in Sweden, suggesting that due to the new car market being so slow, so the number of available used cars is getting lower, which means that particularly to Sweden and Finland, there needs to be more imports. Anything you'd like to comment on that?

Yes. In Finland, it means more imported cars. In Sweden, it means that, of course, the crown is now stronger compared to a year back or 2 years back. It means that it's not so easy to export cars from Sweden or import from Sweden to Finland. And that's why in the Swedish car park, it's not so much out of Sweden. But many, many, many years back, there is 100,000 cars per year what moved from Sweden to other European countries.

Okay. One more question from the chat and then we'll move to questions from the audience. How far are you from your normal sales levels -- normal sales level? And how much of the gap is due to the weak economy versus increased competition?

How far away we are, of course, we cannot set our budgets, but as we said earlier, it's very important to increase hand by hand the inventory turnover, what means to sales and the inventory levels. If you do so that you increase the inventory, of course, it's very short-term good impact. But after the 3 months, there is coming a lot of bad things on the table. And that's why we are very carefully about increasing the inventories and the sales speed coming with the inventory increases.

Very good. Thank you. Any questions from the audience here? Maria, please, you get the mic, just a second.

Yes. Maria Wikstrom from SEB. I had 3 questions. I'll take them one by one. I'd like to start asking like who is winning share given that, I mean, your number of cars in Finland you sold was down 10%. The official statistics show about a percentage drop in the Finnish used car volumes. So who is currently gaining share?

If you look about the last year numbers, there is both Rinta-Jouppi, K-Auto and Bilar99. Those are the strongest companies which grew last year.

And if I may expand a little bit here that, I mean, you probably have analyzed the situation, I mean, with the Board. What do you think has been like the winning recipe then in 2025?

Of course, if you open -- if you start somewhere and you open new stores and new locations, hire more people and increase the inventory, it means automatically -- not automatically, but it's easy to grow. But if you are the market leader and you have tough situations as we had Q4 '24, Q1 '25, then you must take -- make a choose where you want to win. And we -- as Enel mentioned, that we made decisions that we are taking a margin, healthy inventory, good cash positions.

There have also been some, I mean, news articles about like Finnish customs having an investigation on certain car dealers for their practices of importing cars and I guess, I mean, paying for the VAT. Are you part of these investigations?

Maybe I'll take this one. So we haven't been contacted by authorities. Of course, we look at the news and follow the situation, but no contact -- they have not contacted us on that.

And then finally, on Sweden. So what kind of mandate you have given -- I think his name was Niklas, the new country Head of Sweden. So is that more like a growth or profitability mandate that you gave him when he's taking the helm in Sweden?

I would say that in Sweden we need the growth that you can achieve the profit also. It's not so -- now in Sweden that we only need the margin. We need both of the margin, but we need also the growth. It's hand by hand.

And if -- one follow-up there. So would that be more, I mean, growing the number of cars in the inventory? Or have you given him a possibility to start increasing the number of locations as well?

As I said earlier, we don't open -- and we were very clear about Niklas that we said we don't open any store before we are taking place -- use all the places what we have in our Swedish stores and store networks. And it means that we can grow our inventory, but not open any stores before we are profitable there.

Any further questions?

[ Jussi Koskinen ] Kamux's story was competitive advantages through or based on scale, financial services, database management and so on. So what has happened to those competitive advantages you told me to us a couple of years back? Have they disappeared? And can we somehow enhance those or get some new competitive advantages?

The areas that you mentioned are still there. The competition is more tough on those because when you go first with the competitive advantages, your competitors are very eager to copy those. So what we are -- have started already is our strategy update process. We look into those areas very carefully and our strategy overall and also competitive advantages as part of it.

If I continue shortly, maybe also the size of the store network, especially in Finland and Sweden, those are still in our own hands. We have our own tailor-made ERP CRM system, Kamux management system. And we know many competitors which works in many countries, and they have several different systems what they use, and it's quite tough. And of course, the brand. We are still 22 years old company and the best known in -- especially in Finland.

Is it possible to execute those old advantages more efficiently or find some new advantages?

We believe that we can find also some new when we are updating our strategy in this year. And also, we need strength about those advantages what we have.

I'm not sure if I remember right, but at some point of time, there was discussion that you would like to have more stores in capital area, and now you are closing 2 of those. So has the situation somehow changed or?

Yes. We look about how many cars we can set or put in our stores in the capital region. And now we had so many places and the sales were not as good as needed and we didn't have so many cars what are possible. And it's not okay in a financial perspective to use the place where we can -- where we couldn't make a good business.

Then we have questions from Davit, please.

It's Davit Kantola from eQ. I have a question on the inventory cleaning or decrease you did in Q4. Could you elaborate, was it done during the quarter evenly or was it at the beginning or at the end of that?

I would say that we made systematic work the whole quarter. And the level where we are at the end of the year was very near about the target what we set when the quarter started.

Any further questions? Sorry, Maria, I was typing, replying.

No worries. Yes, I have a few more follow-up questions, which I mean, today, when I walked here, the sun is shining and that typically means that the high season is ahead of us. And given your inventories were quite low at the end of Q4, so have you been able to source attractive used cars, I mean, ahead of the high season or are the next explanation for lower volumes being that, I mean, there were everybody in the market sourcing for attractive used cars?

As I mentioned, we are in a situation that we can start to grow our inventory and we started it.

And then I think you mentioned in your CEO notes that one of the like weak points in '25 was high employee turnover. And I guess, I mean, that's probably following the lower used cars -- number of used cars sold, which then I mean reduced the compensation for the sales employees. So how you are going to tackle this in 2026? And is it possible to tackle it with the current model?

Yes. We started -- you can continue after me. We started the program for the leaders, I mean, store managers and the area managers start of this year to give more tools for them to handle the purchasers and the sellers and take better care of the employees. And as we see that we are on the right track when we think about the eNPS, what happened last year, the second half of the year, but we have still a lot to do. And of course, it's also how much the sellers can earn, how much they can sell, what is the margin of the cars. And it's one reason, of course.

And I think, I mean, given that I followed you guys, I mean, quite a long time, and I think we talked about the quality of data that you have in your database. And I mean, now the AI is a big theme everywhere and I would assume that, I mean, with the AI tools, I mean, the kind of information that you previously perhaps have held by yourself is easier to accessible to other players as well. So how would you see the impact of an AI to your business?

This is something we discussed about in our strategy work as well. But of course, we have discussed many months, at least since I have been here. We see in many areas, of course, first, you mentioned that maybe competitors who doesn't have their own database have an advantage. But at the same time, we see it as an advantage as well because we own the data that we have and we can do a lot with that with IA.

Also, of course, we see customer journey -- very, very traditional areas, customer journey, inventory management. It's -- the development is so fast in IA, and we also are in the journey with the development. So this is something we really work on and continue in 2026 and particularly within our strategy work.

Any further questions from the audience? There's at least one more via the chat. So we'll take that. How many cars do you have to return for repairs after you sell them? And how does that affect your bottom line? So after costs.

I would say that 70% of the costs coming when we speak about the repair cost or maintenance costs coming before the sales. It means that 25% to 30% coming after the sales. And of course, we have the ticket system. We see all the tickets. How many claims we have, how fast we handle those and what are the cost of those. Maybe that's the answer.

Any further questions? If not, then we thank the audience online and the audience here at Flik Studio and wish everyone a good day. Thank you.

Thank you very much. Have a nice day.

Good morning, and welcome to Kamux's Q3 results presentation. My name is Katariina Hietaranta, and I'm Head of Investor Relations at Kamux. We have our CFO, Enel Sintonen; and CEO, Juha Kalliokoski, presenting the results, after which we will have a Q&A session. Go ahead, Juha.

Thank you. Good morning. My name is Juha Kalliokoski, and I'm back as the CEO of Kamux since October 16. As Katariina said, Enel and I shall now guide you through Kamux's Q3 results.

Here is agenda for the presentation. As usual, we shall first take a look at the quarter in brief, Kamux's market positions and what our showrooms network look like at the moment. I shall then lead you through our review by country, after which Enel will present in more details the financial development of the company. Towards the end of the presentation, we will take a look at where we are in terms of our long-term targets, a few words about our strategy. And at the end of, we will have a Q&A session.

During Q3, we continued our focus on profitability and improving the financial health of the company. We have successfully reduced the average price of the cars we sell as planned. This contributed to revenue decrease, although the main component was the decrease in the number of cars sold. Our revenue decreased by 17%. Our focus on profitability has paid off and the gross margin has increased from 9.8% to 10.9%. The improvement gross margin was, however, not sufficient to compensate for the decrease in revenue. And subsequently, our gross profit decreased. Our adjusted operating profit decreased from EUR 5.5 million to EUR 4.3 million.

Our cash flow has been extremely strong, EUR 31.5 million in January to September. And our inventory is at a healthy level as we enter the quieter period towards the end of the year. Revenue from the integrated services decreased from EUR 14.6 million to EUR 13.7 million as a result of decrease in revenue and number of cars sold. However, the share of integrated services in revenue increased by 5.2% to 5.9%. Consumer preference towards affordable cars continued in all our markets. Customer satisfaction was a good level and a targeted level and NPS was as high as 63% in Finland.

Used car markets grew in Finland and Germany, while in Sweden the market was flat. In Finland, finally, it was the sales by dealers that grew during the quarter, while earlier in the year, market growth came mainly from consumer-to-consumer sales. Kamux continues to be the #1 player in the Finnish market measured in number of cars sold. In Sweden, we are #8. And in Germany, our market sale is still very small. A few words about the new car sales. On a year-to-date basis, the growth in new car registration in Europe has been very modest, less than 1%. In Kamux operating countries, registrations have grown only in Sweden, while in Finland and Germany, the new car market is either flat or negative. In the big picture, Kamux is Europe's fourth largest seller used car cars in Europe, and those figures are from last year.

Here is an update on our showrooms network during 2025. As of today, we have 68 showrooms. In Finland, we have closed 2 showrooms, Klaukkala and Mantsala during the year. By the end of November, our showroom in Jyvaskyla, Central Finland will move to new premises that are owned by us and built to suit our needs. The total number of showrooms in Finland is now 42. We have made -- we have not made any changes in Sweden, where we continue to have 17 showrooms. I shall come back to our plans in Sweden later in presentation. The Schwerin showroom in Germany was opened in early July, and we currently have 9 showrooms in Germany.

Moving to the comments per country. In Finland, we succeed in consumer purchase during Q3 very well. This is particularly important now as importing from abroad is not easy due to the low level of prices for used cars in Finland. Our strong focus has been on more profitable sales, which has led to decreased volumes. We are continuously working to find the right balance between volumes and margin. Gross margin per car sold increased both in Euros and in percentage, which we are very satisfied with. For the quarter, Finland gross margin grew from last year 10.3% to 11.6%. The adjusted operating profit margin increased slightly, although in Euros, we fell behind the comparison period. Adjusted EBIT margin is also above the 4% level. As of September 1, Joni Tuominen was appointed Managing Director of Kamux Finland, having acted as an interim MD since mid-April.

Sweden. It has been a pleasure to see our Swedish team making a strong turnaround. Compared to Q3 in 2024, our operating results improved by EUR 1 million, which is really a great achievement. In Sweden too, the focus on profitability has had a downward impact on sales volume. But we have succeeded in increasing the margin per car as well as significantly strengthening the penetration rates for both financing from 48% to 53% and Kamux Plus from 16% to 25%. Customer satisfaction has also risen close to the group's target level and NPS was 58 in Q3. We have completed the assessment of our network in Sweden and decided not to make any major changes at the moment. The current network is sufficient for a profitable business in Sweden, and it also allows growth. We believe it's possible to have a profitable business in Sweden, and it's very much in our plans. Our team in Sweden has already made a clear positive turn by progressing according to plan for 2 quarters in a row. And the results are already visible both in the financial KPIs as well as operational efficiency and customer feedback.

And then Germany, challenges on car selection and volumes continued during Q3. Sales volumes were weak, primarily due to the car selection that did not match the demand well enough. The revenue was impacted by the weak volumes, and the margins by the inventory management measures we took, selling out or getting right off low demand stock. Subsequently, the operating results was negative. Marcus Mezodi started as the Managing Director for Germany on the 1st of July. And together with him, we have started to turn the business around. As in Sweden, in Germany, we work in close cooperation with Marcus to build daily operating routines in line with the Kamux concept. Going forward, this will help us to achieve first reason car margins and thereby building the profitability of the business and supporting our ability to grow.

As one of the first steps, we modified our purchasing process and ensure that our selection meets the demand better. And then here you are, Enel, you are going to the finance, more details about the financials.

Thank you, Juha. As noted by Juha already, our focus has been on financial health and what it means. First, our focus continued to be at car pricing and margins, and we continue to be selective on deals. And second, we continue to work with inventories with focus on capital efficiency, fit with volumes, car selection fit to consumer demand. And key achievements of the quarter were we achieved clear improvement in margin and profit per car. Both Finland and Sweden progressed as planned. In Germany, as noted by Juha already, we faced challenges, and we work intensively and with discipline to turn the profitability into the right direction there. We reached our targets on inventory levels and progressed well with inventory structure and selection fit. Decline inventory levels contributed well to liquidity. We have now EUR 20 million cash at the end of the period, and it enables growth as well as investments in the future.

Focus on profitability had also some adverse impacts at the expense of being selective on deals and targeting higher margins, we lost some of the volumes. Volumes dropped exceeded our assumptions, and we needed to issue profit warning in October. Part of the volume drop, not significant, though, was due to smaller net showroom network. And here are the numbers and summarizing key financial ratios. Revenue declined 17%. Key drivers were underlined earlier. Gross margin to revenue improved 1.1 percentage points, which agrees with our targeted levels and was based on our plans. Operating result to revenue improved from 1.5% to 1.8%. Key contributors were improved gross margin and almost absence of items affecting comparability. Adjusted operating result declined slightly from 2% to 1.8%.

Operating costs did scale, however, not at full scale. Inventory days improved slightly. However, this is the area we have clearly room for improvement and work intensifies on this measure. Return on equity calculated from rolling 12 months result is at clearly unsatisfactory level, especially due to 2 notably weak quarters of Q4 '24 and Q1 '25. In equity ratio, we have reached 50% level. As a summary, the financial performance of the quarter demonstrates that we are directing our focus and efforts in the right areas. A key area to improve is finding a right balance between profitability and volumes. And after 2 quarters of improving our daily routines on car profitability and inventory fit, as well as strengthened cash position, I think we are better equipped to go for volumes. We do it step-by-step with focus and also needed patience.

Here, we can see revenue and adjusted operating result trends. And looking this year, you can see that Q1, we had a negative result. And this is the only quarter in this slide from '22 to '25 that is a negative. Going to Q2, we can see here going up, and also Q3 going further up. So, it's quite nice trend. However, as I said, we are not satisfied with the levels that we have right now. Going to Q4 last year was very weak on profitability-wise, and this is something now we are working to make a clearly better result there. Here, we can see the trend in volumes. So, volumes declined in the quarter, but less than in Q2. mostly due to profitability focus, and with slight impact from lower showroom network. In Q2, so previous quarter, we sold about 3,800 cars less compared to the previous year same quarter. And in Q2, we sold about 2,800 cars less than in previous year same quarter. So, we have seen some positive trend in here, but clearly, we work on the volumes going forward.

At the end of the third quarter, our cash position was EUR 20 million. And as noted earlier, this gives us a good position going forward. We are satisfied with a combination of strong operating cash flows and positive car profitability development. Our integrated services revenue development was hit by lower volumes. We are not satisfied with this trend, even though the share of integrated services has slightly increased in total revenue. Here is a visual representation of how our net working capital developed. We can see EUR 24 million reduction in net working capital, driven by a decline in inventory. I can say that our inventory is in a better fit from both structural and also price point perspective. So, in October, as you know, we had to lower our profit guidance for the year. We have been successful in improving our profitability, but this work has had an impact on our volumes. And with the number of cars sold lower than our forecast, the adjusted operating profit in euros is also estimated now to be lower than expected earlier.

We have also announced that our dividend distribution in October, we did it, and dividend EUR 0.07 was paid at the last day of October. And this morning, we have announced a share buyback program. Based on the Annual General Meeting mandate, Board of the Directors have decided to acquire at maximum 1 million shares corresponding to approximately 2.5% of the company's total number of shares. The maximum amount to be used for the repurchase of shares is EUR 2.5 million, and the program will commence earliest on November 17 this year.

And Juha, back to you.

Thank you. So, a few words about our long-term targets and strategy. With regard to our long-term targets, we are currently behind in the financials but still believe that these targets are doable in the long-term. And as we have just heard, we have already made progress in improving our profitability, particularly in Finland. Sweden is also progressing in the right direction. In customer satisfaction, we have progressed it very well, and the group NPS for Q3 was 60. We hit our target. In October, the group NPS was as high as 66.

Here is our current management team. I had the opportunity to work with the team in an operative role for 8 months before starting as CEO. And it gave me an opportunity to get to know them slightly differently than had I been the CEO. I was also involved in a number of the recent recruitments. Kamux has been an entrepreneur-led company. As the company grew, we needed a unified way of working, and this is what we began with Tapio in charge. We will continue to define and implement common ways of working, so this will not change. We will continue to work with optimizing volume and profitability, data-driven pricing and S&OP, processes as well as inventory management. We will focus on the net working capital, I mean -- and we mean no lazy capital. And at the center are naturally our passionate and capable employees. We have invested in training our employees and will continue to do so.

One of the areas where we are proud is our customer satisfaction and demonstrated in our Q3 NPS, which was 60. Going forward, we also want to ensure that our personnel has the opportunity to succeed in the work. Our strategy remains unchanged. We have already made good progress on the customer side as is seen in our NPS figures. We have also made some progress in improving our operating efficiency, but here, we have still clearly more to do. The direction is right, and we still have a lot of to achieve. Our vision also remains unchanged to become the #1 used car retailer in Europe.

Thank you, Juha. Now it's time for questions, and we shall begin with taking questions from the telephone conference line, if there are any. [Operator Instructions] The next question comes from Maria Wikstrom from SEB.

Yes. This is Maria from SEB. And for Juha, welcome back to a CEO role. I wanted to start with asking a question on the volume trends. Obviously, I mean, this is what has been the recent problems. I think everything starts with volume. So, if you could walk me through a bit of the actions what you are taking in order to resume volume growth in the future.

Thank you, Maria. If I start, you must choose your games where you want to win. And we choose in last spring the profitable business and we started there. And now we are a situation as we saw from our figures that in 2 quarters, we improved our gross margin in Sweden and in Finland. And now we are a situation we can push cars on the volumes. And of course, inside the company, we have many things what we are doing. And we believe that we can change our growth side also.

If I may continue a bit there, given that the NPS has been, I mean, very low in, I mean, the last 12 months. I'm wondering if this is a correlation with lower number of cars sold, which, I mean, then, of course, reduces the compensation for your salespeople and how you are able to turn this around in a very competitive used car market that we are seeing today?

So low EPS.

Yes, it's one focus areas, what we showed to the people what we have. It's balanced between the demand for the employees and also the happiness of the people. But even we sell less cars and improved our margin, it means that the salary side, it not impacted so much when we compare the gross margin, what was the changes in the countries. And I don't see that this is the area why we -- the employee turnover was quite high. But this is totally the key area that we want to keep the people in the company and give more time for this and make a better job together all.

And then my last question is towards your international operations, and I might even know the answer by now, but I mean, still asking if -- as it seems that your patient with turning around the Swedish and German operation is endless. So have I interpreted this right that even if you haven't returned positive numbers, I mean, from neither of the geographical areas until, I mean, today, you are still ready to -- patient enough to wait to get the turnaround in both of the regions.

Yes. We are focusing the turnaround case in the countries. And as we saw, the Sweden happened a huge change. And in Germany, we are doing daily routines at the better level and see also the possibilities, and we are continuing in both countries the business.

The next question comes from Calle Loikkanen from Danske Bank.

This is Calle Loikkanen from Danske Bank. I have a few questions. If we start with Sweden, could you perhaps talk a bit more about your kind of upcoming plans in Sweden? I mean you have done now the network assessment. So, what are kind of the next steps to drive growth? And then also, where do you see that the EBIT margin could kind of realistically go with this setup, with this network that you now have within, let's say, a couple of years?

If I separate 2 parts to the question. The first part, we see -- of course, we know how many cars we can put in our stores, what we have or premises what we have, and it gives the possibilities for us to grow. with the stores what we have now. And the focus is make a bigger and better businesses in this setup what we have just now. And of course, we are looking into further what is the new way of working and make a business -- used car business. And the other part, we are not announced about or published the country by country EBIT levels, and we have the one target in long-term target, which is 4% in the group level.

And then I was wondering about Germany. You mentioned inventory management during the quarter. So, I was wondering that is there more inventory actions that you need to do during Q4? Or was everything done now in Q3?

Of course, it's not a one-off when you are -- it's the daily basis work with the inventory, and you can't make it once. It takes a little bit more time, some months that you can turn the inventory right direction, and you are purchasing the right cars to the inventory. But the major change is we changed in Q3.

And then on Finland, you said that the market growth was driven mostly by dealer volumes now in Q3. So, I was just wondering that what has changed in the market because it's been very consumer-driven market now for many, many quarters. So, has something changed in the market? And do you expect this dealer-driven market to continue in Q4 and onwards?

Of course, we wish and hope that the car dealers share of the deals are increasing. And it's maybe something about the customer -- what is the word of ---

Consumer confidence.

Consumer confidence is increasing. It means that consumers are purchasing or buy a little bit more expensive cars, and it means a bigger share from the dealers to the car dealers because typically, the consumer-to-consumer business, it's very low price point for the cars. It's only some EUR 1,000 the average price. But I don't actually know what was the reason in Q3, this changed, what happened. But of course, it's a good situation that it changed for the more car dealers driven growth.

And then finally, on my side, you've been doing very well now in terms of profitability and kind of margin improvement. And of course, that's the cost side here has been then the volumes. But I was wondering that now you've made a good improvement on the margin, is it now time to push more for volumes going into Q4 and into 2026? Or do you -- how do you think about the profitability versus volumes now versus what you've done over the past, let's say, a couple of years -- sorry, a couple of quarters?

Yes. It's totally a good question, Calle. As I mentioned earlier, we have focused the profitability and turned the right direction. And now we are a situation that we can balance between the profitability and the volumes and push costs more about the volume side. And we believe that we can grow and of course, calculate together to integrate with the integrated services, what is the right balance between those.

Yes. And just to add, when looking back to Q4 last year, looking at the volumes and then profitability, you can see there that we were, how to say, focusing more on volumes compared to profitability. So, this gives us that our comparative numbers in Q4 volumes is, how to say, a challenge in that sense. And also -- but however, the profitability is, how to say, in a more moderate level. So, the last year Q4 volume focus is giving us some maybe challenge.

Yes. And maybe one point more. If you compare a year back, we have now EUR 30 million less inventory and a lower average price point. It means very much lower risk compared to a year ago because it was quite a big grasp what we had a year ago.

That's a very good point. That's a good explanation. Is there any kind of -- you said lower price point in the inventory. Is there any number that you could give us that how many percent lower is the price point now or something that you would like to share?

Not at this moment to share.

There are no more questions at this time. So, I hand the conference back to the speakers.

Very good. Thank you. I think that we shall next take a couple of questions here from the audience, and then we'll go with the questions received in the chat. Okay. Rauli, please?

Yes. Rauli from Inderes. A few maybe more detailed questions continuing on the inventory you mentioned. Typically, the seasonality on the inventories is that it goes down in Q4, so -- in Q3 to end Q4. So, are you expecting that also in this year, even if you are kind of starting point is quite a bit lower than typically?

Yes, it's -- we are quite a good level at the end of Q3. And we don't have a pressure to give a lower number at the end of -- value of the end of the year. Of course, it's the condition of the inventory, how fresh it is. And this is more about the things what we are just now doing.

Then in Finland, you mentioned that you had discontinued the cooperation with Beely, whatever it's pronounced. So, can you open a bit about that? Why was that ended? And are you considering your own leasing offering?

Yes. We looked through about the contract and the business, how it went. And we didn't see it's so good business for the Kamux but we made decision that we ended that. And of course, it's a very small part of our business, and we will see is there coming some other products for this segment.

And then finally, the Kamux Plus penetration in Finland, if I didn't look right, it was the lowest in a few years, even if not that much, but still below 30%. So, is there any particular explanation why that's down?

Maybe one part is the average price, what we sold, it was lower. And it typically goes so that the penetration is higher when you sell the more expensive -- little bit expensive car. And this is maybe one part. And the second part is, of course, where we are focusing, and it's also on the table to sell better penetration of the Kamux.

Further questions from the audience?

In history, Kamux had competitive advantages like selling services and management with data. How is it nowadays? If we are targeting towards 4% EBIT margin, do we have some new advantages in competition? Or is it about executing old advantages better?

As we see in Finland, we are over 4% level. And still, we are not satisfied that level where we are. We can improve that, and then when it comes to Sweden and Germany, in our side, it's possible to achieve those targets in this business, how we work just now. Of course, we are thinking all the time where the used car business are going and what we are taking from there.

Then, about profitability and volumes. Just wondering, are they really against each other? I mean, if you are selling more volumes, you have more turnover against those fixed costs. So, focusing instead of volumes to profitability? Are they really opposed to each other?

Yes, this asks because when we speak only about the cars, and if you give the very big discounts, you can make a deal. But you don't have any metal margin or very low-level metal margin. You have only the integrated services. And as we see what is the part of the integrated services from our gross margin, we can't make 4% in group level EBIT if you do that. Of course, it's balanced between, and maybe we went, in some cases, quite straightforward and very, very small discounts, what we gave, especially in Finland. And it came against us when we speak about the volume.

I just wanted to add here that when thinking about profitability, it's also purchase and sales. So, we are more careful what we purchase to ensure that what we sell is also profitable. So being at the lower level right now, 2 quarters, it has also given us opportunity to strengthen our daily routines on this and how we think about car business overall. And I think that your question, yes and no. So Juha answered already that. But the question also is how we consider what is the business we are at and what we want to achieve longer-term.

Then it's basically achieving more customer inflow to your shop so that you can pick most attractive ones. Final question about cost. There are 2 kind of costs, purchasing price of cars, but then operational costs. Do we have any opportunities with operational costs, how to operate car business more efficiently?

Thank you for the question. So yes, so when we look at the first showroom costs, the question is what is our showroom network, how much is -- what is the capacity? And we can see that we have still, how to say, capacity in place for higher volumes. So, we can do some changes there in the future when and if needed. Another thing is, of course, when we're looking at the customer journey and how we get more traffic, this is something that is changing quite intensively, the cost structure and there. So, this is something we are working also significantly. And also, salaries and pay for the stuff. We have fixed, but also a very big part of variable. So, fixing also salary models is something. So, a significant part is we can scale. So, room for improvement, I would say.

And just a year ago, we invested in new provinces, Helsinki Tunemi, Espoo Fila, and Vantaa Petikko, 3 big stores, quite high costs. And as we saw, our sales declined. And at the same time, you took in higher costs and lower sales. It's not a good combination, and now we are tackling that.

Did I remember right that in [USkula], we have built our own premises. What is the strategy with that in a way, instead of renting premises, having own one?

Yes, we looked at their premises quite a long time, and we didn't find that they're good for us. And that's why we made the decision that we can have some on-premises and in a good place and just made for us. And for example, Tampere Lakalaiva, which is not our own, but made clearly for us, and all of those works very well.

Thank you. We have a couple of questions online via chat. First, it's about the volumes. So, Mika from DNB Carnegie is asking that you've experienced sequential quarterly volume declines, while the overall used car markets in your operating countries were growing slightly. This suggests a significant market share loss. What specific leading indicators are you tracking to signal when volume declines will stabilize? And what is your realistic expectation for when unit sales will return to growth? Also, do you think the long-term target of 100,000 cars sold per annum need to be reassessed given the smaller store footprint and continued market share losses?

Quite a long question.

Yes. So maybe focusing in terms of what specific leading indicators are you tracking to signal when volume declines will stabilize?

As we see in all our markets, it's not the reason that the market declined. It's our own hands, how we think about the market and market share. And as we mentioned earlier, that we focused on the profitable side and financial health. And now we are looking more about the volume side.

And I believe that we have stated that the long-term target, 100,000 cars, is still valid, and there's been no change in that. Mika is also asking about Germany in terms of Germany has been described as undergoing a strategic restart, but shows deepening losses, management changes, and ongoing inventory and assortment issues. At what point do you consider a full exit from Germany to preserve capital?

As we mentioned earlier that we are focusing in both countries. We are not losing those. And I would say that our concept works in Germany it's more about how we handle it by daily routines and make the business in a daily basis. We are continuing in Germany.

We also have a question, a bit broader, on the European market. There are some strong players like Aramis or Ares, and yourself. Do you think there is some room for cross-border consolidation among these independent used car retailers? There are some interesting largely untapped markets such as Poland, Baltics, et cetera.

I remember earlier told about our strategy. And one part is possibilities to make acquisitions. Of course, it is.

Very good. I have no further questions via the chat. What about the audience? Everyone happy? Very good. Then I thank everyone and wish you all a good day. Thank you.

Thank you very much.

Thank you.

Bye-bye.