Good morning, and warmly welcome to Orthex financial statement release. My name is Alexander Rosenlew, and I have with me our CFO, Saara Mäkelä, and CMSO, Hanna Kukkonen.

We will take you through the fourth quarter of 2025 and the full-year figures as well. At the end of the session, there will be a an opportunity to ask questions, and please put your questions in the chat as we speak.

We are tackling as many as we can at the end of the presentation, so that would be the flow. I'll I'll give you a short introduction about Orthex and then then more into the numbers, the strategy moving forward.

Saara will go through financials, and Hanna will highlight some good development in sustainability and and marketing. Who who are we?

We are a Nordic-based or Nordic origin company that is growing in Europe and making a mark with our own organizations in Europe as well. We have three factories where we produce our own goods, and about 90% of what we sell is sold under the strategic brands SmartStore, GastroMax, and Orthex.

That very shortly. Our logistics setup is efficient, close to the to the markets, with one warehouse in Finland, one in the south of Sweden, and one in the middle of Europe on the border between Germany and France.

For us, the mission is to make everyday life easier for the consumer, and if our products can actually solve a need in the home, solve a functional need, then we are on a good track. Usable, good, long-lasting products, and one part of our sustainability strategy is quality.

Quite importantly, we don't produce single-use, we produce products that last and that you can use over and over again, and then at the end of their lifespan, they can be recycled. We, of course, also use recycled material where possible.

Storage, the biggest and widest assortment, about 69 to 70% of our sales. Then kitchen, a lot of products to make preparing and storing food easy, is about 20% of the sales.

Then the final product group or category is home and garden, which includes part of home products plus plus then the flower pots and home and yard related products. We do a lot of lot of innovation.

We follow trends. We follow trends both in color and design, and about 10% of of our turnover is supposed to come from new products.

That's quite quite a good way of keeping you present. Let's go into 2025 and how we did.

So, '25 and Q4 overall, I would say the the sentiment from the consumer was was careful. There was a lot of uncertainty from the consumer, and that also led to uncertainty from our customers, the big retailers.

Not so quick decisions, quite careful on the volume buying, quite careful on on pricing, etc., etc. So, 2025, a a year which was not helped in any way by outside things for us as a company.

During these conditions, however, we managed to perform solidly. We defended, I would say, our top line, and we strengthened our profitability.

The profitability in Q4 improved compared to last year. I would say that this is a combination of of course, tight cost control, and and way of operating and adapting to the situation where the top line is not in our favor, where sales is not growing as we would like to, then adapting to that, and then helped by towards I would say, the end of the year especially, if you look at the whole year, the raw material came down a bit, and that that clearly started to be visible in our numbers.

I would say that, in terms of of our strategic area Europe, where we want to grow, we have good development on on quite many fronts. We also have a few a few customers not performing the way we would like to.

I would say the base is stronger. We have more opportunities.

We have more things going on in Europe as we speak. Then going into the numbers, Q4, quite quite a decline in in sales, I would say.

In Q3, we we told you that that we shipped a lot at the end of the third quarter and and that's visible. The start of Q4 was a bit slow, and then usually, in the end of Q4, we ship a lot for the beginning of the of the following year, and this time, we didn't have as much to pre-ship for 2026 at the end of Q4.

A bit of of a hit in terms of timing on seasonalities there. Then you can see how it's how it's then divided on on rest of Europe and and Nordics.

On EBITA, we did €3 million. The margin EBITA margin was clearly up to 13.6% from 12.7%, and the net cash flow was healthy at €2.5 million.

If I if I look at in in more more sort of general terms, I I think the the theme that's coming back all the time is is the consumer spending, which has been careful on on many of our markets. When it's really tough to get the spending going, I think one of the key things we can do is to look really tempting in the store.

Our store presence can be such that, at least if you're a shopper, you will not miss our products. I think there, in 2025, we have especially made good progress, and Hanna will show you a few pictures later on of how you can make sure that the shopper will buy your product when he's in the storage section of the store.

Leverage is done down to 1.1 net debt to EBITDA, and this clearly gives us gives us room to maneuver for strategic potential strategic investments. If we look at the full year, full-year figures were down by almost 3% at 2.8%, and we did €87.2 million in in net sales.

A small decline, I would say, and and so many times already explained in this first presentation where it comes from. At the beginning of the year, we had to limit some shipments with customers being financially troubled, and towards the end of the year, we had some some seasonal shipment things taking down Q4 a little bit.

Then throughout the year, I would say, all the uncertainty around us in the world making consumers quite careful in in using their money, and that also translating to the big retail customers being careful in making decisions about more listings of our products in the stores, which we, of course, would very much like to see expanding rapidly. Then the EBIT EBITA towards the end of the year, we we actually narrowed the gap.

We we landed at 9.8%, and and on a full full-year level, the percentage was was I would say on par with last year, despite the the quite troublesome start, where we were a bit behind before Q1, sorry, after Q1. If we go into into this by geography, to the left, you have you have the fourth quarter, and to the right, you have the the full year.

To the left, you can clearly see the the sort of careful consumers in the Nordics taking down sales. Then rest of Europe, I would say a bit of a of of a tough comparison.

5.7 was a very high sales level the year before. Of course, we want to grow faster.

I think we have some good things going on in Europe, but we have also one big customer in Q4 not ordering the same amount on campaign volumes as as the year before. Quite a a straightforward quarter in that sense, showing the the sentiment on the market.

For the full year, down in the Nordics, we know Finland has has had quite some trouble, trouble when it comes to the consumers, and and it's a bit of a mixed bag between the Nordic countries. Some some consumers feel more healthy and some less, and and clearly, the overall picture is that the careful consumer sentiment has affected our sales in the Nordics.

Whereas rest of Europe is is fairly flat on a on a yearly level. We would like to see more, but the nice thing is, I would say, the quality of the sales in the rest of Europe is better.

It's getting wider. We are getting more distribution.

We are getting more traction. We have a strong belief in those numbers.

If we look by product group as well, on the left, Q4, and on the right, full year, and here, I would say the same picture, slightly down in storage, both on the quarter and then on the year. I think one one sort of which is worth mentioning is a a slight up in home and garden coming from from recycled flower pots development being quite quite positive.

Otherwise, I think the the category development is quite in line with with the geographical development as well. If if I jump into the strategy, which which hasn't changed too much, I think we are we are on the right track here.

We want to continue to to win in the Nordics. That has to do with being the best partner in the categories we operate, bringing the new products, coming with the right campaigns, etc., working closely to to make the the whole category where we operate more attractive for the for the consumer, and also more sustainable for the consumer.

The second box of growth is is accelerating the growth in international markets. I would say that we have quite a lot of the big customers in Europe, the retailers, we want to we want to cooperate with.

We have some kind of started cooperation. We need to build on that, and we are strengthening the our own setup to be able to build more efficiently even on on those areas.

Hence, we are well prepared for what's to come, to to start delivering on even better on on this box. Then we have the pure online is is still growing.

We are doing a lot of work. We are doing work not only to sell, but also to build our brands on platforms like Amazon or or then the multichannel medias, where you can put in good material on on why our products are to prefer in terms of of supply in these product groups, and and how they work.

It's it's not only online sales, it's also online brand building. With these three initiatives, plus a a Joker, which we call market consolidation, possible M&As, we're looking to become the number one storage brand in Europe, and, of course, protect our leading houseware company position in the Nordics.

I now go over to to Hanna to to share a little bit of what's going on in the stores and on sustainability.

Thanks, Alexander. As Alexander told already, we've continued in putting a lot of effort in building the stores around Europe, and more and more stores are looking like this, as you see in the picture.

In 2025, we built almost 450 stores with our branding and our planograms, so that work is progressing really, really well. Here is some other pictures around France and Europe.

That is what we are continuing, and it's working well. Then moving on to the sustainability, during the Q4, we've been updating or fine-tuning a little bit of our sustainability strategy.

As we did a materiality assessment during the spring of 2025, and there, we found the critical topics for Orthex, and they weren't changed so much after the 2022's materiality assessment. Not any really big changes.

We still concentrate on consumers and end users, our own workforce, climate change, and circular economy. As part of this fine-tuning of the sustainability strategy, we have changed our previous carbon neutrality target, and now the target is to minimize impact on the planet.

This is a much comprehensive, wider target that then includes more aspects than just the carbon emissions. We still continue our challenging and hard work to reduce our emissions, and we have succeeded in that, and we continue, and how we do it is that we increase further the recycled and renewable raw materials, we continue with the more efficient energy use, we use our renewable energy, we promote a circular economy, and so on.

The work is continuing, and we will present the updated sustainability strategy and the KPIs for 2025 in our sustainability report that will be published in a couple of weeks, it's the week starting 16th of March. More then about that.

If we still continue on the Q4, we got a very nice recognition. Our Paulina self-watering flower pot won the Finland's Most Sustainable Product prize in the leisure time category, and this is a really nice recognition for us.

It's a product that we've been selling from the '8 1980s, during 50 years, and it really shows how a design can last time, and consumers still love the product. What has changed during the 50 years is that now, the product is produced with green energy from recycled raw materials, and it's recyclable in the end of its life, a good example of a long-lasting, high-quality product that lasts time.

Reporting, we got confirmed during the Q4 that due to our size, we are exempt from CSRD, but we are monitoring the regulations and the requirements, and we still continue to report our sustainability reporting according to the ESG structure. As said, the report will come out during week 12.

Then regarding the novelties, our launch windows are yearly in February and September, no launch novelties during Q4. In the picture, you see the launches from September last year.

All in all, during 2025, we launched very many novelties, we could really say it's a year of new product launches. By that, I then hand over to Saara and the financials.

Thank you, Hanna. In the fourth quarter of '25, our net sales decreased by 6.3 6% to €22.3 million.

In constant currency, the decrease was up to 9.4% compared to fourth quarter of last year. Weak consumer purchasing power and different timing of seasonal and campaign deliveries affected sales, especially in Nordics, which accounted for most of the decline of sales.

For the full year, net sales declined by 2.8% or 4.1% in constant currency. I think Alexander covered the sales part already quite thoroughly, moving on to profitability.

Adjusted EBITA in quarter four remained stable at €3 million, and the margin improved to 13.6%. Raw material prices were declining a bit, and that supported the development of the profitability during the last quarter.

For the full year, adjusted EBITA decreased slightly to €9.8 million with a margin of 11.3%. Lower sales increased the relative burden of the fixed production costs, but the cost control and lower raw material prices helped us to maintain the gross margin.

In general, the tight cost control ensured that fixed costs remained at the same level as last year relatively. We've done a lot of work with the cost base, and looking forward to getting back to a growth part and developing more to growth during coming years.

Here, you can see the development of key raw material price indexes. During quarter four, we saw some decrease in raw material prices, but it was in a range of the normal fluctuation.

Then the recent geopolitical escalation, the war in Iran, is increasing definitely pressure in the plastic raw materials. Usually, spot prices are reacting more quickly than contract prices, and we are mainly purchasing our raw materials in contract prices.

If the conflict prolongs, and it might be affecting the prices in general. We are, of course, following this closely, and it's very hard to say what is going to happen during coming months.

Next, our investments and debt position. Investments in quarter four amounted to €1.4 million.

Investments focused on new products and improvements in fire safety. As there was no need to major capacity increases during the year, the overall investment level remained lower than in '24 at the level of €2.7 million.

The net debt at the end of the year was €16.6 million, down from €20.3 million last year, and the total interest-bearing liabilities amounted to €28.4 million. Leverage remained healthy at 1.1 times adjusted EBITDA.

Then here, we compare our latest reported figures to the long-term financial targets. Targets are the same.

In tough market environment, organic net sales fell by 2.8% in total and 2.2 outside the Nordics. Both reach our growth targets, which were 5 5 in general and 10% outside Nordics.

Our adjusted EBITA margin was 11. 11.3% compared to the long-term target, which is above 18.

There was a lot of positive development during the year '25, although not all of it is yet reflected into the figures, unfortunately. Leverage was strong at 1.1 times adjusted EBITDA, and well below the target threshold of 2.

2.5. The board proposes a dividend of €0.23 per share, and that corresponds to 60% of the net result.

Then the nomination board has made proposals to the Annual General Meeting. Jyrki Mäki-Kala had announced that he was not available for reelection, there will be two new nominees proposed.

Mats Wickström, he's representing Conficap, and Sari Somerkallio, who is bringing strong financial expertise to support the board's work. Board remuneration is proposed to remain the same as last year.

Then finally, here are the financial reporting dates for '26. The annual and sustainability report for '25 will be released during the week 12, starting 16th of March, and AGM is planned for April 14th.

AGM is planned to take place here at the Espoo offices, it's going to be a physical meeting. We will be publishing our interim reports during the year on 7th of May, 18th of August, and 5th of November.

This concludes the overview of the quarter four financials, and I'll hand it over to Alexander.

Thanks, Saara and Hanna. Just a very quick summary before we go into the questions, What I think we repeated many times, '25 was a careful year from the consumer and the customer.

I think even more importantly, we used our time efficiently, we are well prepared for 2026. We have worked on our processes, we have worked on our organization and our tools, and we are ready and enthusiastic and well prepared for the future.

Hopefully, there will be some stability coming our way as well. We are also getting quite used to all the disruptions coming from all the directions you can imagine that we saw in the previous years.

Let's go into the questions. Hanna, if you can please facilitate the chat.

Yes. Thank you.

Let's start with the sales result. Maybe that already came and maybe you can repeat it as well.

The first question was about we have said that we have been strengthening our resources in Europe and doing a lot of work in the in-store, but why haven't this kind of things have not succeeded or have had no effect in our sales since we didn't grow neither in Europe or Nordics? Maybe I can combine another question to this: so, what is your view on the expansion in the Europe at the moment?

Thanks. Very very relevant question and quite understandable when you have flat development in rest of Europe for the year, and we being, or at least myself being, quite optimistic in my comments.

I would say, first of all, we've strengthened the organization. We have a new sales director from within the company.

We have more organized processes of how to approach the big, really relevant for us customers that are present throughout Europe. We have also an assortment which is, when we launch new products, designed to not only be targeted to the Nordics, but for sure targeted to a position where we are number one in Europe.

Those are the sort of prerequisites. Then if you look bluntly at the numbers, I would say what you can't see from the numbers is the quality of the sales.

That is, we are operating out of a much broader base of big key accounts. We have one or two bigger customers that are not helping the growth, but we have plenty of big new opportunities on the table.

That's what makes me really enthusiastic about the situation we are in.

Yes. Thank you.

Then on the M&As, can you say what kind of M&As are you looking at? You probably don't need to buy production capacity, or?

No,

that's a good question. I think if you want to be the number one in Europe, and all of your current production is located in Sweden or Finland, and transport is quite a big cost component, and also an advantage is speed to the retailer.

They don't have to wait six or eight weeks to sail things from China, but they can buy from our warehouse, which is 24 hours away. I think building a structure where we can take care of all the important customers throughout Europe, they feel they are buying from next doors.

Then if that involves production capacity or only warehouse or sales functions, etc., that's then a second thought that we will return to.

Yes. Good.

Thanks. Then about the raw material prices and the situation in Iran.

How do you expect the Iran situation to impact the raw material prices?

I can I can comment on that. I I think I covered covered our thoughts already in the presentation, it's very hard to estimate what's going to happen.

If it's going to be a short-term short-term escalation, the the effects probably are not that significant, because we are not in general buying buying with the spot prices. Of course, the risk is there if the escalation prolongs and it it takes several months to months to months to sort of sort this this out.

Very hard to estimate. Following Following closely and the situation.

Maybe sort of have to say it out loud, if needed, we need to react and take price increases if the raw material price goes up considerably. Of course, we are looking at that.

Yes. Then do you want to comment changes in consumer or retail behavior so far in '26?

Anything that has changed?

That's a good question. I think '26 is still quite fresh, but some kind of optimism was there, at least until the embargo in Iran.

I think we were getting stable. We saw some small growth numbers even in the Finnish economy, which gave positivity.

Let's hope that some kind of improvement will continue. In some of the Nordic countries, things are quite actually bright.

They have not been as hardly hit as Finland. In some of the European countries, we are not that dependent on the consumer sentiment because our market share is so small.

It's more up to us to arrange our growth than for us to be the victims of growing markets or not growing markets. Until these strange things a few days ago, I think things looked a bit normal.

Thanks. Then about the online channel, could you elaborate on volumes or the situation in the online channel?

I could, or do you want to do it, Hanna?

I think we are increasing, so as I think in every category, online sales are growing. We see a really good development in all our customers' online sales.

We're not selling directly ourselves, but we're selling through our customers' online channels and the e-commerce retailers. We can see a very positive development in the online business.

I could continue with the novelties. There's a question about novelties: 'You aim to generate 10% of revenues from the new SKUs.

How has this KPI developed over the last years, and are we currently tracking in line with this target?' We're not publishing this KPI, but as said, we have put a lot of effort on novelties, and there as well, we see a really really nice, good development with the sales of the novelties and happy about that.

Then that was all for this time, and we want to thank you, and looking forward for the next time in May. As said, our annual and sustainability report will be published in week 12, we will then inform when it's out and available for all of you.

Wishing you all a nice spring, and now it's time to buy new flower pots and put your storage things in the basements and whatnot, go shopping.