Anora Group Oyj (ANORA) Earnings Call Transcript & Summary

[Presentation] Today is all about brands, new markets, sustainability and growth. A warm welcome to Anora's first Capital Markets Day. And we also want to wish everyone following us online, very welcome. My name is Tua Stenius-Örnhjelm. I am from Anora Investor Relations, and I will be moderating this event today. Before we look at our future, let's reflect where we come from. Anora was born a year ago through the merger of Altia and Arcus. There are lots of similarities in how these companies have evolved over time. To begin with, both companies have really long histories. For example, our Aquavit brand, LINIE, dates back to 1807. But also, both companies were part of the state retail monopolies, meaning that their routes are in sustainability and corporate responsibility. However, as the companies became independent of the monopolies, a new era started for them: Focusing on the core, strengthening brand portfolios with acquisitions and expanding to new markets, especially within the Nordics. So a history of strong brands, continuous evolution and sustainable operations, something that we are really proud of and something that gives us a good platform for future growth. But as said, today, we are looking forward. During the webcast, you will hear our management talk about how Anora will deliver growth through sustainability. After the webcast, we have some additional program for those who are here at Gjelleråsen today. During lunch, you will hear a presentation by CEO of Globus Wine, Jens Voldmester. And since we are here today at Gjelleråsen, the largest Aquavit producer in the world, we will end the day with the tour around the productions and some Aquavit tasting. Now let's take a look at the agenda for the next 3 hours. So as said, today, we will talk about growth and sustainability, and also dive into our segments: Spirits, Wine and Industrial. We have planned several Q&A sessions for you today. And we take first questions from the audience in the room, and then we'll take questions from the webcast. And for those who are on the webcast, you can send in questions to us throughout the day using the question form in the webcast player. And now after these opening remarks, we are ready to start with our 2 first presentations. And our first presenter is CEO, Pekka Tennilä. Pekka, the stage is yours.

Thank you, Tua. Welcome, everybody. Thank you so much for coming here to Gjelleråsen. And then obviously, those online, thanks for joining in. This is an exciting day for us as we finally get to present our ambitious 2030 strategic plans. As Tua said, sustainability has always been a part of us. It's in our DNA. And we truly believe that we can grow through sustainability. So you will see a lot of great presentations today. A lot of details. And what I thought I'll do now is to give you a summary of the key messages. First, Kirsi will talk about the International part of our business and how she will take that from being 10% of our sales today to 20% in the future. That basically means tripling that part of the business. Then Åsa and Janne will talk about how they will grow market share in the so-called monopoly channels, which are Norway, Sweden, Finland. And then we go to -- we will talk about how we will put significantly more A&P resources on our hero brands that drives our growth, growing this investment. And we will show you with, I guess, the lead of Hannu, how we will fund those investments through significant efficiencies in our supply chain. ESG, sustainability is at the heart of everything we do. And that, you will see. And Petra will talk about our very ambitious ESG road map. And once we are -- have executed those plans that she will present, I'm sure we will be considered as one of the top ESG players in our industry globally. Lastly, we want to be a preferred workplace. We want to grow as a company, and we want to give our employees an opportunity to grow with us in a safe and inspiring environment. All this leads to a 3% to 5% annual average growth and 16% EBITDA at the end of the strategy period. And as a last presentation, Sigmund will give a great presentation on how all these plans that you will see turn into numbers. So that's what's to come, and that's the future. So -- but let's take a step back and look at our starting point. We start obviously with the Nordic market. It's a fairly large market, EUR 12 billion. It's very stable, 2% growth historically, 2% growth to be expected for the future, both for Wine and for Spirits. Historically, what we've seen is that wine and spirits market is fairly noncyclical, meaning that the financial downturn or recession doesn't really impact so much the average consumption of wine and spirits. Yes, we do see fluctuations between channels. Yes, we might see fluctuations between different price points. But the average consumption seems to be historically pretty flat. There are certain trends that are impacting our business in the Nordics and globally. I guess one of the strongest one would be consumers going green. And we talk a lot about that, and that's obviously a great opportunity for us. Then we see that maybe with the lead of the younger consumers, they're looking for nonalcoholic alternatives in wine and in beer -- in beer and certainly spirits. And I guess you've seen that, what has happened to nonalcoholic beer, how it has grown. And it is to be expected that something similar could happen to us as well. Demand for convenience is going to continue. We've seen a 16% growth on RTDs globally. We've seen that in the Nordic markets as well, and we expect that to speed up. In-home consumption. Before COVID, 58% of consumers say that they mainly consume at home. After COVID, that was 74%, and we expect that to continue. And lastly, digital disruption is going to impact our business in the Nordics in a significant way. And you'll hear more about our digital plans in coming presentations. We are the market leader in the Nordics, which in our view, feels like a great opportunity to grow and obviously take advantage of those trends that I just mentioned. Now as we're looking at the map, so you take the 3 top Nordic countries, which are Norway and Sweden and Finland, those are countries we call monopoly countries. And we call them monopoly countries because 90% of our sales go through state-own monopolies. So all the wine and spirits that you buy here are sold through that channel as a retail channel. Then the rest of the countries, we call open markets, where you buy a wine and spirits from a normal grocery store. So that's something you'll hear from our presentation, so just as an explanation. We are #1 or #2 in each market in the Nordics, a growing share in the Baltics as well. Nordics is probably one of the leaders, if not the leader in sustainability globally. And I'm pretty sure that the monopolies are the toughest customers when it comes to requirements on sustainability. So therefore, it's really, really important for us to be a leading player in sustainability. That's something that we've invested a lot in and continue to do so in the future. Jens is here today. And for those of you who are here, you'll hear a fantastic presentation from him. But really, the acquisition of Globus Wine kind of filled the blank spot in our Nordic wine market. Globus Wine is probably the biggest success case of the Danish wine during the last 5 to 10 years. They were founded in 2006, now they are the market leaders with 18% market share for their own brands and 26% on their total production. That's pretty impressive. Danish market, wine market is pretty interesting as well. It's the second-biggest in the Nordics, with good average consumption per liter. What's really important for us, on top of that commercial success, is the way Globus Wine does it. With their business model, they are able to reduce the CO2 emissions, with near-market production, by over 70%. So it's a perfect fit for our sustainability agenda as well. Good. So the merger created this leading wine and spirits brand house in the Nordics, offering a truly pan-Nordic route to market for our partners. We said at the time of the closing that we are looking for acquisitions as well. And with the acquisitions of Globus, the Glöet brand and getting minority share at ISH, I think we have proven that we can actually do that. And I'm sure you will be excited to hear that, as we promised, EUR 8 million to EUR 10 million of net synergy savings on EBITDA level, we are right on track delivering those. So integration is proceeding as planned. Anora's business is well-balanced across categories, across countries. Wine is our biggest segment, with 50% of sales, 30% on Spirits and 20% on Industrial. And Hannu will talk more about what Industrial entails. In terms of markets, we have 4 big Nordic markets, quite equal in size. Sweden being the biggest, which is obviously, normally, I see it is the biggest market here. Then Industrial is the fifth strong leg. And as you will hear, we have ambitious plans to build the International as the sixth strong leg in our business. And then partner brands, own brands in perfect balance. So talking about brands, this brand portfolio is probably the envy of the industry here. I mean, it is a combination of iconic own local brands, and then the leading global brands, both from Wine and Spirits in our partner business side. And what's really the core value of this brand portfolio is that we are able to offer a full assortment to our customers. They don't need to go any further. They get everything with us, sort of a one-stop shop, and that entails a lot of opportunities for us in the future. So that's the setting the scene. That's the starting point. And now we go back to the future, and we talk about our strategic choices. And we want to keep it quite simple. So we have 3 strategic choices. The first one is about the monopoly markets, where we want to lead the category growth across occasions, across channels and strengthen our position as the leading wine and spirits house. And also -- and Janne will talk exactly how we plan to do that. Then second one is about Denmark and Baltics, where we want to strengthen our position in both countries. Actually, we've done a big step with the Globus acquisition in Denmark to strengthen our regional leadership. And third one is about growing internationally with our strong, sustainable hero brands. And Kirsi will talk more about that. And as said, ESG at the center of every decision we make. These strategic choices are supported by a number of enablers. You have -- on the consumer side, you will see a lot more scale on our hero brands investments, a lot more scale on our digital. You'll be hearing about how we are not only the experts on the monopoly channels, but want to become a stronger player in the grocery as well. We want to be the #1 supplier to on-trade, which is super important for our partner business. You will hear how [ imitate ] will play a significant role in our growth strategy. And lastly, how we plan to build the most efficient and sustainable supply chain operations. This is all supported by our strong values, which we built together with all of our employees. This is about courage to explore. This is about having the energy to inspire our customers. It's about empowering our organization to win. And I will leave you with this slide, which is our vision statement. What it says is that we are the leading Nordic wine and spirits group, want to grow share, and we want to do that through sustainability. We have fantastic brands that -- we want to bring those brands to the world, and we want to bring the best brands from the world to the Nordics. And all this is encapsulated in our purpose which is called Let's drink Better. Try to make every occasion for our consumers slightly better with our high-quality, sustainable brands and products. Thank you. [Presentation]

Hi, all. I will next tell you about our award-winning sustainability work and how that helps us to bring that growth home. First, I would like to show you 2 figures we are really proud of. 90% is the rate of renewable energy we are running Gjelleråsen with, the state-of-art production plant we are at today. So that's geothermal energy and green energy. And 60% is the reduction of CO2 emissions we have already done at Koskenkorva distillery. Now Koskenkorva is a distillery based totally on circular economy. What Janne will tell you more about in his section, it has its own biopower plant and it's really unique, one-of-a-kind distillery. As Pekka said, sustainability is in our DNA, and it's really in the heart and soul of our company built in the production of all our grain-based spirits. So this is really what I want to talk to you about today. This is what brings us the competitive advantage. It is very much linked to our products, for example, Koskenkorva in international business, what Kirsi will talk later. And that's what helps us bring the growth in the Nordics and beyond. And we have built our new road map on this platform, what we've been investing in for over a decade. So it's really unique, very hard to copy. Let's see how the new road map looks like, our sustainability road map to growth. We have taken into consideration here the tightening regulation and also the demands of our partners and customers. As Pekka said, we have the most demanding customers in the world. The Nordic monopolies have been driving sustainability for a very long time, and they are committed together to decrease their emissions by 50% by 2030. And we are part of their value chain, so we will help them with this road map. We have split this in 3 parts: Planet, people and product, and called the road map Regenerate the Future. That refers to regenerative farming, which is a big part of this road map. Regenerating the conditions of our planet, but also to regenerating ourselves, our own business in the decades going forward, when building sustainable future-proof business. Let's see more in detail the section, Planet. Okay. Here, there are 2 things I would like to highlight. Our key goal is to have carbon-neutral operations by 2030 and carbon-neutral Koskenkorva distillery already by 2026. And this is without any carbon compensations, so carbon-neutral production and carbon-neutral distillery 2026 without buying any carbon compensation, so pure and clean. And we need to decrease the emissions to fight climate change, but we also need to build carbon sinks. And our way of doing that is to invest in regenerative farming. Regenerative farming is a method that binds carbon to the soil instead of freeing it to the atmosphere. And food production is a high-impact sector. There is a lot of emissions from the -- or global emissions coming from food production. And we buy over 200 million kilos of barley yearly in Finland, so it really makes a difference how that barley is grown. And we want to increase the amount of regenerative-farmed barley from our own grain-based period product to 30%. So that's a big goal. And these 2 things, carbon-neutral production and regenerative farming, are very much linked to our products, for example, Koskenkorva vodka, and to our international business, which Kirsi talk you through soon. A big step for us, though, is to set science-based targets. We are committed to set those, and we will set them during H1 when the FLAG calculation methods for the land use are published. But we are looking into a level of 38% reduction in Scopes 1 to 3, aligned with 1.5 degrees, and also to long-term reduction targets, 2050 net zero. Let's see how our emissions look like today. Our Scope 1 and 2 is a bit less than 30,000 tons of CO2, and that comes mainly from Koskenkorva distillery. Like I said, we have already reduced 60% of our emissions, but distilling still is energy-intensive. So we have still a couple of steps to take, and I will soon show you how we will do that. But where the impact really lies is Scope 3, so our value chain. And here, the biggest emissions comes from purchased goods and services. And under that, packaging, wines and barley. We also have a detailed action plan for all the rest of the emission sources, from logistics to our digital footprint. But the 4 areas we are prioritizing the emission reductions are: In Koskenkorva distillery; then packaging, where we work with climate-smart packaging; wines and barley, where we work with regenerative farming. And I will next show you how we will go down to 0 with the emissions at Koskenkorva distillery. So as said, we have already done a good job at Koskenkorva, and we have 2 big milestones left to go to 0. So in 4 weeks' time, from January, all our electricity in Finland will be renewable. Half of that coming from the Kalax wind park in the neighborhood of the distillery. And the next big step will be to change Koskenkorva old boiler to a -- steam boiler to a bioboiler in 2026. And that really, as you see, pushes the emissions almost to 0. So we have some small things left to clean, and then we are at our target. Next, let's look at the part, People. Here, we work with our own people and the people in our value chain. So at our own production, we have been building a strong safety culture for a long time. If you look at the chart at Rajamäki, the lost time injury frequency, we have been decreasing it with 44% from 2016. And Rajamäki is our internal benchmark, so they are really good with this. Great achievement. We are also proud of our gender distribution, which is quite balanced. But when we look at diversity, equity and inclusion, in diversity part, we really want to look beyond gender, to age, to different career paths, to different life experiences to really have a good team, with diversity of thinking that helps us with innovation and growth. And in our value chain, we buy 2% of our wines from risk countries. Mostly wines, but also spirits such as rums, or packaging materials. And with those risk suppliers, we work with certificates. So Fairtrade, Fair for Life, [Foreign Language] for example. And we are members of amfori BSCI, which makes it possible for us to audit the risk country suppliers. And this is how we work with the human rights, which is very important. Thinking for example of the Norwegian legislation, the transparency law, and the upcoming EU regulation on human rights due diligence. Next, let's go to the section, Product. Here also, I would like you to remember 2 things: We work with climate-smart packaging, and we work with responsible drinking culture. So in climate-smart packaging, we are by far the leaders in the Nordic monopolies. Already over 60% of our own packaging are climate-smart. So glass, only 40%. And we have a variety of different types of packaging for different consumer occasions. So bag-in-boxes, pouches, tetras, cans, PET bottles. And our PET bottles are all climate-smart, and they have a CO2 footprint of 60% to 90% lower than that of glass. So this is the new luxury instead of a heavy glass bottle. 60% to 90% lower CO2 footprint. And we work also with responsible drinking culture, also with educational programs. But the most concrete way we feel we can do that is by providing non- and low-alcoholic choices, no-low choices. So we want to increase that constantly. And also, we'll soon tell you what we are doing in the no-low section. Now we are not doing this alone, but we have strong partnerships in every area of our sustainability road map. In environmental, we work with Baltic Sea Action Group with regenerative farming. And we work with science-based targets to set the right ambition level for the emission reductions. In the social or human rights part, we work with amfori BSCI and support U.N. Global Compact. In governance, I would like to lift up our reporting. We are really proud of our transparent and -- reporting and have published, 13 times, a report based on TRI standards. This year, we will add TCFD and 4 new areas in taxonomy. And these are the 5 key ratings that rate us in ESG. Just to mention EcoVadis, where we got a gold medal second time in a row. And just to sum up our sustainability road map to growth. It's built on a unique, one of a kind production setup, very sustainable. We've been investing it for over 10 years, so it's very difficult to recreate. It's linked directly to our products. Brings us competitive advantage. It's very tangible, very easy to understand for consumers, very strong setup. And this is really what we believe can bring us growth in the Nordics and beyond. Thank you.

So thank you, Pekka and Petra, for your presentations. We now open up for questions. And we take first questions from the audience in the room, and then we take questions from the webcast. And for everyone in the room, I would like to remind you to use the microphone so that your question can also be heard on the webcast. So then we can take the first question from Maria.

Maria Wikstrom from SEB. Firstly, on your new targets. Have you set a time line that when you should be able to reach the 16% EBIT margin -- EBITDA margin?

By 2030.

By 2030. Okay. And then linked to that question is that we talk about the partner brands and Anora's own brands, and this is now 51% and 49%. So how would that split look like when you are -- you have reached the 16% EBITDA margin?

That's a great question. I'm not sure if we've done a projection on that exactly. I think probably in Wine, you might be seeing higher growth on own wines, that could happen. I think it will be quite balanced in own spirits. So I would say probably, all in all, a similar split. That would be my best estimate.

And then one more, which might come during the lunch as well. But the Globus Wine, I mean, you looked at the -- you gave the number of the market share, close to 26%, with 16% which was, say, Globus own wines, and then 10% of the filling. So how does the profitability differ in these 2 categories?

I think that's something that Jens probably will come back to. But profitability in general in own wines is higher than for the filling business. And maybe I was just thinking -- I mean, if I was talking about the monopoly markets in your question about the split. Obviously, if you add the international business growth, which is basically all own brands, so I think that will kind of tip towards the own brands. So maybe the share actually would be higher in the future for own brands. So a small correction to that.

Okay. So then, we have another question here in front from Joni.

Joni Sandvall from Nordea. Maybe still coming back to your financial targets. So you are targeting 3% to 5% top line growth. So how is the split between different categories? So is there -- I'm just thinking, if international is growing more, is it more on the spirits side? So how should we look, your category split?

You will see that in Sigmund's presentation. So Joni, if okay, I'll leave that answer to Sigmund because it's coming up.

Yes. And then maybe one ESG-related question. So when thinking outside the monopolies, as Pekka said, it's tight in monopolies when thinking the criteria. So how important choice factor is this for customers outside the monopolies?

The monopolies are driving it. And I think as Pekka said, that the Nordic countries are seen very sustainable in the world in general. So we think that, of course, it's growing in every country. Maybe some markets coming a bit behind, but we feel that it's a growing, also commercial factor, to the choice of more sustainable products. And we feel that the Nordic-ness and the high sustainability level are really like competitive advantage and differentiating us in a very good way. But I think that Kirsi will open up that in her sector, a bit more.

Exactly. And building on that, I think we started to see, like 3, 4 years ago, like on-trade customers demanding for -- or appreciating a sustainable lineup of products. So we've seen evidence of that. I see -- we see that more and more in Germany with a request for brands like Koskenkorva. So it's definitely not only the Nordics, it's growing outside as well. And I think we are in a perfect position now, as we are, where we feel a bit ahead of the game, to take advantage of it.

Okay. Next question from Rauli Juva.

Rauli Juva from Inderes. A question on your growth areas, basically. If I look at your strategic choices, you are kind of aiming to grow pretty much everywhere you are operating now. So the question is that, was there any growth paths or opportunities that you kind of looked at but decided not to pursue?

Yes. We made choices. And I think there's certain choices that we prioritized.

Can you give an example? What's something that you considered but decided not to go for?

I could talk about cognac. Cognac, we are a significant player in the Nordics. We are very excited about what's happening in China right now as the markets are opening up. Let's see what happens with COVID. But obviously, right now is a good moment. And cognac is kind of not as a key role in our growth strategy.

Okay, good. Related to that, specifically on Baltics, you are quite a small player in market share terms in quite small markets. So why do you want to kind of focus on that -- or those markets basically, also?

Baltics is a great market, and we believe it will grow. We are a smaller player because we have a smaller lineup of brands. So I think if you look at our position, it's actually a good starting point as we have a few brands that do well, right? So it's easier to build on a few successful brands. So that's what we want to do. I think there's a couple of things. I think we can expand our portfolio to new categories with the help of the merger and the new brands that we got in there. And the second one is Lithuania. We're basically out of Lithuania as it is for now. And we've seen, both in Estonia and Latvia. And hopefully I'm not preempting Kirsi's presentation, but great interest for Koskenkorva in Lithuania as well. So great opportunities there. I mean, it's 5 million people, right? So it's not nothing. It's the size of Finland as a market. And we believe, with the purchasing power continuously increasing, I think that's a great opportunity to us. And it's a home market. And to continue to building on that, we know -- I mean, the Finns travel to Estonia to buy a lot, and it's kind of there's a constant movement in between the Nordics and the Baltics. So for us to cover the whole region is a strength. And it's also something that we can offer to our partners.

Good. And then one on the ESG side. How much of the Scope 3 reductions you need for the 2050 target? How much of the kind of actions and changes you already know that you can do kind of the products or the technologies there? And how much needs still to be invented, so to speak?

Yes. For the 2050 net zero target, I think we got the biggest -- where we got the biggest impact, which is our own production. And there, we saw how we will push that to 0. And then the packaging, where we are in a very good way. Plus then the regenerative farming, which is really a big opportunity. Also -- or nationwide almost because we buy 1/3 of the barley field -- barley crop that comes to the market. So those are impactful. But I think, for everybody, how you get to net zero, you don't know how -- all steps. We have a very strong plan for the first part of the journey, but I think the idea is that it pushes companies to innovate. So we need to find new solutions, with our partners, with our customers, with our suppliers and NGOs together to get all the way to that. And net zero, also science-based targets, allows neutralization of the emissions in the last part of the path. But we want to go as far as we can without compensations with these actions.

Okay. Thank you. So we have a few questions from the online audience. And we actually have over 200 people watching the webcast, so keep those questions coming. So let's first continue on the sustainability topic. And there's a question that -- which is -- would be a nice recap on our sustainability road map. So in concrete terms, how is sustainability a competitive advantage?

Yes. I think that Kirsi will talk more in detail of that. But I think, as it is built in our production, we have invested in it for over a decade, it is very hard to copy. It's really a barrier of entry to the same level of sustainability we are. You can't do that in 1 year. You can copy a sustainable packaging or sustainable product or concept, but really production that is built around circular economy with own biopower plant, that's very hard to copy. So that's what we got and that's what's in our DNA. And that's so much linked to our grain-based spirit products, so that it's very tangible and easy to use also commercially all the way to the consumers, to tell this story. So that's how we feel that it's really competitive advantage and differentiates us from the other players.

Okay. Then we have a question about the risks relating to growth. And I think I will ask both questions. And maybe Pekka can touch upon both, and Kirsi later on. But risks related to going international, the first question. And following on that, and risks in general in reaching the ambitious targets you listed. How to mitigate those risks?

Internationalization demands, obviously, resources and investments. So that's always risky. We want to downgrade that risk, if you like, by finding significant efficiencies in all of our operations to basically funding that growth ourselves. We also want to take it in steps. We -- Kirsi will talk about repeatable model, that's super important. We go to a market, we do it in right steps, the steps that fit to our size of business and our needs. And as we know what works, then we can expand it and reduce the risk. That would be an example.

Okay. Thank you. We have time for one more question in this Q&A. So if there's no questions from the audience, I have one from the webcast, and that's also about the CO2 emission. So do CO2 emissions from fermentation at Koskenkorva count to CO2 output, too?

Yes, they do. And at Koskenkorva, we collect the CO2 that is an output in the fermentation process, and that's used in the nearby forms to farm tomatoes. So that's collected.

Okay. Thank you. So this is -- now we are done with the first Q&A session. And it's now time for us to move on to the next topic on our agenda and the deep dives into our businesses. After the next 2 presentations, we also have a Q&A session. And we start off with our Spirits segment, where we are the market leader in the Nordics and an international challenger. So after a short video, you will hear Kirsi Puntila talk about our international growth plans. And after that, Pekka and Åsa Strömberg will talk about the plans for the monopoly markets. So let's start with the video. [Presentation]

Hello, everyone. Good to see you all here in Gjelleråsen and you guys online. So Norway, Sweden and Finland, they are the monopoly markets that have traditionally been the stronghold of our business. That's where we have laid our foundation and gained our reputation. But that's no longer enough of us -- enough for us. We have already flirted with some of the markets outside the region. But it's now when we are ready to invest behind our strongest brand assets and then grow internationally. So what is Anora International business unit? What does this EUR 85 million baseline consists of? In simple terms, it is everything but those 3 monopoly markets. It is Denmark. It is all the Baltic markets. It is our next closest new market, Germany. It is all the duty-free travel retail, and it is much more. It is around 30 export markets that we operate in and digital sales. And this is where it gets exciting. It's quite inspiring to stand here and present the business area that is geared up for some significant growth. Based on careful analysis of our brand portfolio, the competitive landscape and the opportunities in chosen markets, we believe that we can triple the business by 2030. It's not going to be easy, and yes, it will require consistent investments. But we want the International business to be 20% of the total Anora sales in future. And that will be a combination of organic growth and acquisitions. And Sigmund will later on today elaborate a little bit more about our mergers and acquisition strategy. And what you can see here are the key pillars of where the growth is coming from. It consists of our current own markets: Denmark, Estonia and Latvia. Then creating and expanding in Lithuania and Germany. And then a so-called repeatable brand growth model, which we want to take from one market to another. And I will soon talk a little bit more about that. So let's start -- in the next 3 slides, I will shed light a little bit more into how do we make it happen. And let's start with Denmark and Baltics because that's where we are cementing our regional leadership. Although, of course, very different to a certain extent, there are quite a few similarities between these markets. All of them, Denmark, Estonia and Latvia are so-called open markets. And as Pekka said before, those of you who don't know the terminology between the monopolies and the open. Open markets basically means that you can go and buy your boost in your grocery store, whether it's the Waitrose's of the U.K. or Edeka's of the Germany. So the tactics are fairly similar. In both of these areas, we want to have one route to market and be present in all channels. We want to have a full portfolio of our own brands and grow share. We also need to have strong partner brands and take them on the journey to the growth. And we want to strengthen our on-trade and digital channels. So the opportunity in both Denmark and the Baltics are around EUR 30 million to EUR 35 million. And if we then double-click on Germany -- sorry, Denmark, it will be -- it means focusing on our own brands, Koskenkorva vodka, Aalborg Akvavit and Gammel Dansk Bitter. We want to reach 20% of the market share of vodka category with Koskenkorva. But also attract the best partner brands with us. And as far as Baltics are concerned, Latvia and Estonia are actually witnessing a record year this year. I think we have found a very solid and strong way of working in all channels, and then establishing Lithuania and have a direct presence in there. And then comes the new business part. How can a small Nordic player become significant in the big wide world? What is the recipe for growth? What is the recipe of attracting the hearts and minds of the international consumer? The success is twofold. First, we need to have the best sustainable brand assets, and then the best possible route to market. So firstly, the idea is that we are developing a growth model with our sustainable hero brand, Koskenkorva. And that means that the modeling is basically telling you where to play and how to win. It's a very structured and systematic approach, where we are first testing and piloting certain attributes, then we are refining it and then eventually taking to other markets. So the outcome of the model is that we have a proven successful playbook for more rapid expansion to multiple markets. But it's not enough that we have the best brands. We obviously need to have a place where to sell them. So the winning route to market that, that can be either dedicated strong distributors. It can be our own operations or then acquisitions, which will provide us a speedier route to market and speedier route to new consumers. At the moment, we are already in some 30 markets, with clear geographical focus. We are in Central Europe with Germany and Switzerland. They also have more of a natural linkage to the Nordic values and Nordic brands. Then we are operating in a so-called vodka belt with great markets: Ukraine, Slovakia, Czech Republic and Poland. And then the Western Europe, I mean, U.K. being one of the world's biggest vodka categories. U.K., but also Spain, Italy and France, and then the rest of the world. We talked about -- Pekka mentioned about the Cognac. I mean, China is very important for our Cognac category and Larsen in particular. And then in the U.S. at the moment, we are with Koskenkorva vodka and our full Akvavit portfolio. So let me talk to you a bit more about our Koskenkorva vodka, the hero brand. Why do we believe that we can win with this vodka? We have a very well taken care of brand asset at our hands. It is the quality, the raw materials, the heritage, our local farmers. The whole story is downright inspiring. And the 3 key things for the 3 key reasons to believe for Koskenkorva is, firstly, that we have a growing international vodka market. It's much nicer to ride on the winning horse than bet on the declining category. And the CAGR growth towards '26 is 1.2% in volume and 6% in value. And we have already demonstrated that we can do it with Nordic markets. We are particularly proud of Sweden, who's been establishing the brand in the past few years and the year-on-year growth is 37%. And the second reason to believe is demand for sustainable brands. This has been historically driven by the wines, but more and more, the spirits consumers are also looking for sustainable solutions from their brands. And we have a proven track record of being able to drive high revenue growth in our new markets, Ukraine and Switzerland as an example. In fact, we started in Switzerland, basically from scratch this January and we're finishing off the year selling 90,000 liters of Koskenkorva. So well done Switzerland. And then third reason to believe is the regenerative farming that Petra told us about. We believe that is a revolution in the industry. Koskenkorva climate action is the first vodka that is made entirely from regeneratively farmed barley. So we are quite excited to actually have a real impact in nature with this product. So not only does the product taste good, but it's also completely green. So really, regenerative farming is fighting climate change. So now we've talked about the brands and we've talked about the international markets. There is one channel role, though, that is very much of an enabler for growth, not only for the International markets, but also the monopolies, and that market is global travel retail. We've all been through the airports and ferries, picking up the brands that we can't see the Nordic retail. That's usually an environment where you have a little bit more time to browse around the selection when you're waiting for the flight at the airport or enjoying your time on the many ferries. So this environment is crucially important for the brands to connect with their consumers. We are already in all major operators in the Nordic markets but also outside the region, either with our direct presence or with our strategic partners such as Heinemann and Dufry, to mention a few. But the real growth for travel retail comes from our growth -- opportunity comes from outside the region. So we want to follow the Nordic consumer and grow by EUR 10 million in the strategy period. And of course, we also want to do our fair share with a very ambitious sustainability strategy that Petra has given us, and become a real sustainable opinion leader in the travel retail channel and show that it is the actual commercial winning factor. And another channel, that is very important in our growth journey. So where do we buy our wines and spirits these days, more and more online, of course. So we want to grow the share of e-commerce to 20% of the total International sales. And we believe in the omnichannel approach so that we are investing behind our own nordicspirit.com which will work more as a testing incubator to create digital experiences and gather first-party data for our usage. But simultaneously, we also want to be with our third-party platforms in general, and Amazon, in particular, because that's where the masses are, and that's where we get the economies of scale. So far, we've done a great job starting with our key online brands and having a great customer ratings with Koskenkorva in Amazon. So the essence of the International story is that there are different tactics for the monopolies and they are winning internationally. Here, we need to have more of a startup mentality. So the old saying of doing things the same way and expecting different results is very true here as well. We need to be disruptive and we need to do things differently. So I want to leave you with 3 clear priorities. The first one being winning in the open markets. So Estonia, Latvia, Lithuania and Denmark. That's where we want to take ownership of the full portfolio and grow share together with our own brands as well as the partner brands. Secondly, scaling up Koskenkorva with a repeatable growth model in different markets and focus on strong route to market. And thirdly, maximize the global travel retail and digital channels, become a sustainability opinion leader and create superior consumer experiences. So the International team is ready for the challenge, and we're willing to run for the growth. Thank you very much.

All right. Now we come back from open markets to what we call monopoly markets; Norway, Sweden, Finland. We talk about spirits in these markets, which, actually, this is the most profitable part of our business. And we believe that we can grow further in a profitable way. So looking at kind of setting the scene, it's fairly sizable segment, EUR 145 million of sales. It's mostly own brands -- own spirit brands. All the 3 countries are equal in size. Looking at the market shares, small numbers there. But what you see is that we have traditional core categories such as vodka and Aquavit, where we are very, very strong. But we are actually probably a top 2 player in each and every category. But maybe with more room to grow in certain categories and also will soon explain how we plan to do that and in which categories. So as Kirsi said, we have very ambitious plans in this segment as well. We are aiming for a 4% annual average growth on net sales. And remembering the average 2% for the total segment, that means that we'll be gaining share. So how do we do that? We want to gain share in spirits, also we'll talk more about that. You see quite a bit coming from Sweden, where we are at the lower base still. But not only from that, also Finland and Norway will chip in. But then you see a significant growth, what we call RTDs, ready-to-drinks. That comes a lot from Finland, where we have a base that we built for 4 years, and we believe that we can take a big leap forward during this strategy period. And also Norway is super interesting for the RTDs. But Åsa, why don't you tell us a bit more?

I will. Thank you, Pekka. Thank you. I'm going to explain to you how we will grow our Spirits business within 4 different focus areas or priority areas. The first one is all focused on our partners. Partner business is key to us today, and it's key in our 2030 strategy. We have an impressive portfolio of partners. And I'm sure you have heard of many of them, just to name a few, Jack Daniel's, Jose Cuervo or Fireball. And you might even have tasted them at some point. So our focus is to offer the best route to market and grow our shared business together. We have a strong position in the Nordic region. And as you see on the chart, we are very strong in some of the more traditional categories in spirits, like vodka, Aquavit or cognac, where we have more than 50% market share. But we do have some other categories where we do see a really strong possibility to grow. And some examples there are rum, whiskey and gin. And our partners, they are constantly developing new products, developing new brands, new packaging, acquiring new companies, and we see a great potential to explore these areas together with our partners. But winning with partners requires excellence in all areas where we work. And we are doing a lot of activities. And one thing that I would like to mention is on-trade. And just to be very clear, on-trade is whenever you go out to a restaurant or a cafe or a hotel and entertain yourself or others, then you are in on-trade. So since the merger between our 2 companies, we have been setting up a new on-trade organization, and we have been initiating an on-trade excellence program, where we train our people. And our target is to implement a joint way of working in the Nordic region and to become the preferred partner to our on-trade customers by 2024 and measured by customer satisfaction. So in addition to our famous partners, we do have own brands as well, brands that we own as Anora. And our second focus area is about focusing and scaling up our hero brands. We own more than 100 spirits brands in our company, and we have chosen a few to focus and to increasingly invest behind. The 4 brands that we call our hero brands are Koskenkorva vodka, Linie Aquavit, Xante Liqueur and one of our newest brands, Skagerrak gin. These brands have been evaluated on sales volume on recent growth trajectory, on profitability and on the category trend. And they will, on average, receive a doubling of A&P investments in the coming years. The brands will be focused on 4 pillars. Consumer-centric, occasion-based innovations, this could be going into a new category with the brand, new packaging formats like RTDs, for example. The second one is on-trade excellence, and I already talked about this just before it's very important as well for these hero brands to perform in on-trade. The third one is digital. And due to different legislation, digital for spirits is only possible in the Swedish market. And here, we will increase our investments and focus them into the digital channel more for the future. And fourth is sustainability. And you have heard Petra talk about our efforts when it comes to sustainability. Here, Koskenkorva is our frontrunner as you have heard. But we will scale up our efforts also on the other brands to improve on packaging and other aspects that affect our environmental footprint. So I just mentioned that we have more than 100 brands, and I've mentioned 4 of them. So what about the others, you might wonder. We call them our local warriors. And our third priority area is all about optimization of our portfolio. So the local warriors, they are the base and the engine of our current business as they represent around 70% of our current net sales. They are well-known brands in the local markets. And you'll see some examples here. You see Jaloviina, which is -- it's a part of the modern Finnish history. O.P. Anderson is a bottle that you need to have on your table on all the national festivities in the Swedish market. And Opland is an example of a brand in Norway that drives the premiumization of the very important aquavit category in this country. We will not turn back on these brands. Of course not. But we will balance the -- sorry, we will balance for profitable growth and manage investments and drive towards profitability through price and cost optimization. And as you have heard and understood by now, we are strong in the monopolies and we are strong in on-trade. But what we really want to develop is in retail. And our fourth focus area is about growing outside of our core categories and in a new channel. Ready-to-drinks, or RTDs, low alcohol and no alcohol are categories that are very much in line with current consumer trends in the Nordic region in terms of convenience and health. In Finland, these products are purchased in the retail or the grocery. And here, we have already entered. We have products there today, and our aim is to double our market share by 2030. In Norway, it's the same. It's also purchased in retail or grocery, how you want to call it. And here, we have an untapped opportunity of 5.5 million liters that we want to explore. We are setting up and strengthening the organization to build a new additional solid leg for Anora to supplement the current strong position that we have in monopoly and on-trade. We will enter retail and these segments through own brands, through partner brands and through mergers and acquisitions. You saw recently or we heard recently that we acquired a minority stake in the Danish non-alcohol company, ISH. So ISH is a producer of non-alcohol spirits of high quality. So that you can make a margarita without alcohol at home with the non-alcoholic tequila. So this is a new venture for us at Anora, and we're moving into this new channel with new categories. But we are confident that we are well set up for such a venture, given our strong backbone of Nordic consumer insights and our proven capabilities in product development.

Should I try to summarize what you just said?

Do that, yes. Why not?

All right. Let me try to do that. So Åsa also said, first of all, it's about channel excellence. We want to excel, obviously, with monopolies, but especially the on-trade is super important, to earn the right, to distribute those amazing partner brands that we enjoy having. Second one was about investing significantly more resources on fewer brands. And then how do we balance that together with those local barrier investments. And I guess the fourth one then is about the new channel. It's about entering the grocery channel in a stronger way. Yes, we are there in Finland. We have gained a certain market share. We aim to double that. We're doing more, investing more, having stronger partnerships. All this will lead to a 4% average growth annually for the strategic period. And with that, we are ready with Spirits' presentation and ready for Q&A. [Presentation]

Thank you, Kirsi, Åsa, Pekka for your presentations. And as in the previous Q&A, we start with the questions in the audience, and then we take the questions from the webcast. And we have a first question, which comes from Maria.

Very interesting presentations indeed. I wanted to come back to the A&P investments. And if you could quantify a bit what would that mean in euros? And then obviously, there is quite a lot of growth arenas that are fighting for the same money, so how you are going to, Pekka, divide the money for the A&P investments?

Our focus is on International growth. In International, our focus is on Koskenkorva and a few selected markets. Like Kirsi mentioned, it's about building a repeatable model, starting with smaller pilots and then expanding those. In the monopoly markets, it's about those 4 big brands, what we call hero brands. The focus will be on those, investing more on those and basically investing less in others.

Can I elaborate that, Pekka, a little bit. Maria, that overall, if you look at the Anora A&P levels, we are in the same sort of area than international FMCG companies. So then -- obviously, then we need to balance it out. And when we're investing in growth, and we are investing a bit more there and maybe a little bit less somewhere else. But if you look at the average euro per net sales, we are at the average level of an FMCG company in Europe.

Of course, then, if we talk about the global growth, the sales level is still a little bit smaller than some of the large FMCG companies. But -- and maybe there, Kirsi, for you as well that I think the -- lately, we have seen a growth of the tequila segment and how that has been done. There is a lot of these superstars, global superstars that have been like advocates for the brands. And then I'm thinking if Anora would have resources to actually hire one of these like brand advocates and to bring the Koskenkorva like more in knowledge in the U.S.? Or do you see that this is basically out of your reach?

Yes, I mean, building brands, all of us who have been doing that, it takes time and money. And as Pekka said as well earlier, over investments and there are obviously risks related to that. But we have a very strong brand asset with Koskenkorva and the vodka category is growing. Then, of course, we are constantly looking at the other growth categories, and we have a lot in our portfolio in the monopolies where we can sort of balance out and mitigate. But vodka category is huge. It's the biggest. It's one of the biggest categories in the spirits segment altogether. So if we take a certain market share percentage, and it doesn't even have to be massive in the biggest vodka categories that we're in a good place.

And then finally, to Pekka, that you presented this EBITDA margin target of 16%. And now we talk a lot about the investments in multiple side of the brands and the business that how should we look at the progress towards the 2030 in terms of the margins that, I mean, should we -- I mean, how should we model that?

I think that's something that Sigmund can talk more in detail about. But I -- we talk about funding the investments ourselves. What you will see is significant efficiency opportunities in supply chain within spirits and I guess within the brands marketing overall. We do overinvest in certain areas of the business, which we believe will grow the most. In others, we will invest less. So it's about internal allocation as well. But definitely, the efficiencies play a big role in terms of building the profitability up to 2030, especially in the early, early days.

Okay. Thank you. Any other questions in the room? So maybe Joni?

Maybe one question related to groceries and ready to drink. I know that you have a flexible packaging in Rajamäki, for example. But if you are increasing your sales as you are targeting, does this require new investments on the packaging side?

Potentially, yes. And I would say almost hopefully, yes. We are now about 5% of the RTD in Finland. We want to double that to 10%. I don't think that needs to be the ceiling. I think one obstacle we have currently is the high COGS. If you look at the pricing, it's below EUR 3 in Finland and we are still above EUR 3. So considering that and being 5% and being with the limited distribution, I think we're doing really well. And I think that shows the strength of, for example, Koskenkorva brand. But I think we want to go below EUR 3 in pricing as well. I think that will open up new volume opportunities. It's a volume business. And what it means is, in practice, is that more volume -- bigger production volumes to lower the COGS. So that's what we're aiming for. I think currently, we are outsourcing our canning, but it wouldn't be impossible to in-source that. And that would hopefully mean that we could lower the COGS, which would give us more -- better profitability and more room to activate our brands.

Then second question related to international pilot waves. So could you open up a bit because it's 8 years or 7 years here and you have 3 waves. So when should we expect this first wave?

You can expect the first wave happening soon. I mean obviously, the piloting phase, it takes around 6 to 9 months where we're actually testing certain attributes of target segment and messaging of the brand and off-trade elasticity and also the e-commerce and all the rest of it. So that takes up to 6 to 9 months, and we have started already with that project. And then as far as scaling it up, it takes usually 1 to 3 years to really show the strength of the model. And then yes, there are mysterical pillars in the presentation where we are going to go. And I guess you could read in between the lines there in my presentation, which our geographical focus areas are. So we're not going crazy. We're not going to go somewhere completely out of our comfort zone. So we are systematically building this first in the close-by markets and then taking it further from there.

Okay. And then final from me. Is there -- when you are thinking now, is there a difference between margins of these target countries? If you are thinking gross margins of the products, I mean, of course, there is difference with categories that you are selling there, but is there a big difference between countries?

Not massively different. But there are differences between the markets, of course, and that is part of the decision process, which markets we are going to. Of course, we want to be a profitable player eventually. We wanted to be a self-funding machine eventually. Although upfront now, we need some bigger investments in the beginning. Absolutely.

Okay. Then from [indiscernible].

Just one from me. On the International side, you state that the profitability will be weak in the early years of the start period. Obviously, you have not given out that number, but will it actually go down from the current levels? Or there kind of stay around where it has been and then it should be?

Well, I don't think we have been opening up the exact profitability levels per market before either so...

No. But just the direction you're saying, it will be weak. So would it be weaker than currently or just remaining as weak as it is?

Yes. Well, for the first couple of years, we probably see a little bit of a downturn when we start investing. We haven't been investing this much in actual export operations before. So there's a tendency of first going down a little bit before it gets -- starts going up again.

All right. So then we can take a few questions that we have received from the webcast. So this -- the first question is a continuation to the one that we had in the first Q&A on the risks relating to International growth. So if you could, Kirsi, please elaborate a little bit on that?

Yes, maybe in a more concrete, I mean, Pekka already said that, of course, growing internationally is always a bit risky. But I still believe that we have a very balanced plan. We obviously can mitigate the risk between our monopoly markets and then looking at the export markets. We already, in the international business unit, we have our strong current markets, Denmark and all the Baltic markets, and travel retail duty-free, which are fairly stable markets already. But then as far as the export is concerned, yes, risks are involved. But at the same time, that's why we're doing the piloting. That's why we are doing the repeatable brand growth model so that we are testing. So that we don't do things that we don't know that are going to be successful. And then also, as far as the competitive advantage of us is that nobody else can say that they have a vodka called Koskenkorva coming from the village of Koskenkorva. So I think that's the whole sort of heritage and the sustainability aspect, it's not just a brand story, it really is in our DNA. The whole story about our sustainability is very, very solid. So that is our competitive advantage and lowering obviously the risk moving forward.

Okay. Great. Then continuing on the International path. So will you -- or do you have plans to establish your own Anora subsidiary in Germany?

But we have already. We have our operations in Germany. We have an office in Hamburg. But it is a combination. Germany at the moment is a combination of our own operations and then distributors. We have 2 very strong distributors, one for our Aquavit portfolio, the other one for Koskenkorva vodka at the moment. But Germany is a very lucrative and interesting market for us.

Great. Thank you. Then we have one more question from the webcast. So how will you look after the employees in the upcoming efficiency improvements? Goes to you, Pekka.

As we've always been, I mean, their well-being is at the center of our plans. What we do is -- what we feel we can do on the supply chain side is significant efficiencies through just higher productivity, which is not related to personnel or cuts or anything like that.

All right. Good. So if there are no more questions from the audience in the room, then I think we can conclude this Q&A session for now. And it's time for us to take a break. So we will be back at 11:50 CET. And for those who are on the webcast, during the break, we will be showing videos. So there will be a video telling about how we have developed a new premium PET bottle. And then there will also be videos showcasing our brands. Thank you. [Presentation] [Break]

So welcome back, everyone, from the break. I hope you had a chance to have a coffee and talk to each other a little bit. And I hope everyone on the webcast enjoyed the videos as well. So next on our agenda. We continue with the deep dives into our businesses, and you will hear presentations about Wine and Industrial segments, but we will start with a short video. [Presentation]

Move to wine. And first of all, a big thanks for our great partners, Oscar, Fernando and Christian. Now it's time for me to walk you through the key strategies and then the growth priorities when it comes to our largest business, as mentioned earlier today, which is Anora Wine. Anora Wine -- as you know, Anora Wine is the largest wine business in the Nordics. We are the market leaders in Finland, in Norway, and in Denmark and a clean #2 in Sweden. We say that we are a unique wine business in the Nordics. What makes us unique? We are the only wine company with our own filling and packing capability, together with own wine label development and premium wine imports. And why is that relevant? Having all this clearly makes us the most sustainable wine produce, wine sales company in the Nordics. This year, we have grouped -- I mean, after the merger, we have grouped all ex-Altia, ex-Arcus partner wine businesses under the umbrella of Vingruppen. And now Vingruppen clearly is the largest part of our wine business. I think it says that 60% of our total wine is now grouped under Vingruppen. Anora Wine brands and Globus Wine, they focus on producing own label wine that is specifically targeted to the Nordic wine consumer. You can see there that the biggest, the largest, own wine for the both companies are Chill Out, Il Capolavoro and Falling Feather. But I think more importantly, in Globus Wine, we now have a filling and packing resource that fully meets the high expectations of the Nordic monopolies when they are thinking of sustainability and sustainable packaging. And when we talk sustainable packaging, we are talking bagging boxes, PETs, wine pouches because we can clearly see that these are the formats that are taking over in all of the Nordic monopolies. And I think it cannot be stressed enough that this capability, of being able to be strong in sustainable packaging and filling, will be having a huge importance moving forward with the Nordic monopolies. To our targets. For the target period, we aim to grow faster than what the markets are organically growing. We estimate the growth of the wine markets between the 3 plus 1, 3 monopolies and Denmark. We expect the market growth to be somewhere between 1% to 2% annually. And our aim is to grow at double that speed. Based on the recent very rapid growth of own label wine, we also predicts that our own label wine will be growing faster than the premium Vingruppen partner portfolio. And obviously, then this growth it contributes greatly to the profitability of the full wine portfolio that we have and have it moving forward. Logically, it will be the 2 biggest markets, Sweden and Denmark, that will be contributing more to the growth targets than the slightly smaller markets, Finland and Norway. All in all, as you see, our targets for net sales is to exceed EUR 500 million at the end of the strategy planning period. From this on, I will move on to talk more in detail of the 2 core businesses, Vingruppen and our own label wine. Vingruppen. Vingruppen is already the largest importer of partner wine to the Nordics. Through our 17 independent wine imports companies, we believe that we can offer the customers and consumers, across the 3 markets, the most exciting and the widest wine portfolio in every way. With this portfolio, definitely our primary focus is to work with the monopolies and especially focused on their new product searches, we call them wine tenders. Every year, more than 100 new products are being listed in each of the monopolies. And of course, out of this 100, we want to be the one gaining the lion's share of the new business. Another important element for Vingruppen, where we already are strong. We are already the market leaders in on-trade in the HORECA sector, Today, already, we are the #1 providers of premium wine to on-trade in all of the 3 markets. And this market has a very special meaning for us, and more than so, a very special meaning for our partners. You can imagine partners that what we are showing here as example. They really demand that their premium wines exist in all the wine list, not just here in the Nordics but around the world. And this is then why us really, really having the benchmark route to markets whenever it comes to premium wine in on-trade, it is really, really crucial for us. Then I think a small bonus, which I think will not be a bonus, I think this will be a key competitive advantage for us moving forward, is then the area of sustainability. Again, with everything we have now at place in terms of near-market filling and packing, this will be fully available for all of our partners as well. If our partner today, let's say, a small producer of Piomonte wine, a smaller producer of any wine, if they don't currently in their own markets, if they don't have access to produce bagging boxes, PETs, pouches, obviously, then having a very close collaboration with us will make that happen. And again, remember, this is what the Nordic monopolies are expected to get. Actually, by reading at the monopolies' sustainability targets, they are pretty much saying that, by 2030, glass bottle era is about to come to an end. If you look at where they want to go, they want to close their -- they want to reduce their carbon emissions by minus 50% by 2030. This is really saying that, by 2030, there can be only a fraction of glass bottles left in any of the monopoly shelves. And then all of this will be replaced by bagging boxes, tetra, PETs, wine pouches, all sustainable packaging. And I think this collaboration between us and then the wine partners will have only more important meaning for our collaborations moving forward. Moving on to our own label wine. I think all of you, who have followed the evolution of the Nordic wine markets a little bit closer, you can see that in the past 5 years, it is the own label wine that has really taken the market by storm. And why is this? It's not rocket science. I think own label wine here in the Nordics, they really have managed to get the rights, the price quality ratio of the wines that they are offering to the consumers and to the monopolies. And I think even more so, I think the modern Nordic-looking authentic wine labels have really, really made the difference. And that's where we can see that, for example, already in the biggest of the markets, Germany; and the biggest of the markets, Sweden, we can see that more than 50% of all of the bagging box segments are own label wine. And in total, the bagging box segment is almost 45% of the total Swedish wine market. So this is really, really significant moving forward. We as well have been very successful in this business. In Norway, we were the innovator of own label wine, and we've been very, very successful in that with brands like Falling Feather, Ruby Zin, that at least the Norwegian audience are familiar with. And I think another market where we are very, very successful is then Denmark, Globus Wine. And again, with brands like Il Capolavoro, which is by far the #1 own label or any wine in the Danish market. A market where we really haven't really played our full hand yet, if you like, is Sweden. And obviously, now for the upcoming strategy period, the plan is to do so. This entry for the own label wine market, as you see there on the right-hand side, will play a very, very key role in us growing our business, getting our business to those top rankings as measured in each market. And that is where you will be seeing much more focus, much more investments coming from our side, Sweden own-label wine. Other things in own wine that will be super important for us. First of all, sustainable wine. We can see that sustainable wine in its all forms and shapes, can be organic wine, can be sustainable packaging, can be near-market filling wine, is already a very rapidly growing market. We believe that we have all the bits and pieces in place. And that's why we believe that we can do even better when it comes to sustainable wine in all of our markets. Last but not least, another key markets where we really want to do better is Italian wine. Italian wine, as a country of origin for wine, it is by far the largest. It is about 1/3 of the markets when it comes to in Nordic in general. Here in the middle, you see that our market share, there is still very, very low. And this is definitely something we want to address with both our own label line, and there you see some examples of that. But of course, we also want to address this with the Vingruppen's more premium wine portfolio with partners like Masi, Allegrini, [indiscernible] and so forth and so on. So it definitely is a very, very important focus point moving forward as well. When we talk about wine and the Nordics, and I think if we talk any industry, obviously, digital is one of those key areas that we must be strong at. And actually, if you look at how the markets look today, with our digital platforms, it's called folkOfolk in Sweden, it's called Viinimaa in Finland. We are already, by far, the market leaders in terms of reach, in terms of visits of consumers to our digital platforms and pages. But still, we are not happy with that. We -- our plan is to double the reach, double the engagement between us and the wine consumers in Sweden and in Finland. So that by the end of 2025, we would have more than 1 million consumers who would be linking and engaging with us through our digital platforms. And how it works with digital platforms in Sweden and in Finland? You know that they are state-owned monopolies. They only parties that is going to actually go and do the final sales to the consumers. But our digital platforms, how they work, is that they feed sustainable gets in Arcus, their e-com shops. And by feeding them, we can create listings. We can create distribution increasements for our own products. So we work as feeder for the monopoly e-com sites, and by doing so, gain significant new business. And then I move already to summarize my wine slides. So first of all, we plan to grow Vingruppen sales through focusing further on partner wine, premium partner wine, monopoly new product searches, again. Every year, more than 100 new products are listed in any of the monopolies. And last but definitely not least, on on-trade. On-trade is a key driver for most of the premium wine producers around the world. Secondly, we will be putting significantly more focus on our own label wine developments, and we will be entering new segments like the high-volume segments we just mentioned about in Sweden. We will continue developing our market-leading digital platforms, folkOfolk and Viinimaa moving forward. And I think all in this, we really believe that we will be benefiting greatly from sustainability and sustainable packaging, where we believe that, today, we have the competitive edge versus the competition. And then with all of this, our strong belief is that by the end of the strategy planning period, we will be exceeding EUR 500 million in net sales by 2030. Thank you very much. Moving over to Hannu.

Welcome to the world of factories, logistics and procurement as next. The role of supply chain has developed quite a lot during past few years. I mean the amount of challenges and surprises have evolved. I mean, since -- I remember it was perhaps 3, 4 years ago when the issues with the container supply on the global scale started. Thereafter, the COVID hit us and the operations, followed by the war, thereafter the energy crisis and then material shortages, inflation started. So there has been surprises after surprises. And -- but somehow, we've been able to cope with it. It's been a lot of firefighting, but also thanks to the organization and the teams also -- I mean, by help of various proactive measures, we also have started to build up the resilience, which is very important to when thinking of how to avoid out of stocks and how to keep the level of disturbances as low as possible. I will touch some of that in my presentation, with a focus on efficiencies as been mentioned already in some of the previous presentations, with a special focus on the additional efficiencies that we have identified along this year. Start from supply chain. What is -- somewhat unique with Anora supply chain is the fact that we are serving both -- I mean, we are serving external customers, both with the industrial field as well as logistics. And it comes with 2 benefits. We gain from the volume. Economies of scale is working to our advantage. And then the other one that is worth mentioning is the positive pressure that we get from the customers. And that results then in better service, in higher quality requirements, in lower cost and so forth. And that's a very important driver when thinking of a longer time perspective. The external business of logistics and industrial has started in Arcus, in Altia, already some 20 years ago. And it comes from either utilizing the capacity, like is the case with the logistics business or the industrial service business; or then it derives from Koskenkorva distillery, where we are utilizing the material streams. In the middle, you see some of the volumes that we produce in terms of bottling volumes or in terms of logistics. We are clearly the biggest with these volumes within our region, within our industry, providing us with the result of -- that is visible in the unit cost. I will ask -- next, I will look at the -- take a little bit closer look at the dots on the map. Here's a set of pictures showing the main capabilities of our supply chain by which we support the growth ambition of Anora. On the logistics side, I would like to pick one example. And that is when combining all of the monopoly volumes of the 3 countries together, Anora is supplying more than 23% of that total volume. The combined volume. So 23 -- more than 23% is passing through our logistics and distribution centers, which gives us an outstanding position in terms of route to market. In the middle, the main bottling plants are visible. I mean top-notch set-up. Also, I mean, we are supporting the filling business out from these locations. More than 40% of the total volume is served to external filling customers. And then on your right, you see the specialized distilleries. I mean we have dedicated distilleries for aquavit, both in Sweden in Sundsvall; as well as here in Gjelleråsen. Later on -- during those being present, you have an opportunity later on during the tour to see the maturation warehouse that is located here in Gjelleråsen. That is part of the value chain. And then naturally, we have the Koskenkorva distillery that is focusing on grain ethanol. Let's double-click on that as next. Koskenkorva is truly a unique setup. Circular economy is in-built into the design of the plant. The plant is receiving the grain and then processing it throughout the process, and that generates the side streams. Here mentioned the feed, that's an animal feed component, consisting of roughly 1/3 of the total balance. Another one is the starch, which is one component in the grain. And then the CO2 is the third one. That is generated through the fermentation. And then naturally, the -- what is the most important part for Anora is the grain spirit, along with the technical ethanol. That's the core that we focus on within the company. The other side streams are taken care by external experts. We have established long-term business relationships with several companies that buy the components, the streams as raw material today processes. Koskenkorva is a source of continuous innovations, both regarding the process, but also the end products. We already -- Kirsi earlier mentioned about the climate action product that is a recent novelty. That is a result of the innovation capability. From the industrial part, I could pick the pharmaceutical industry that we have entered in during past few years. I mean medical companies, they are placing the most demanding quality requirements on ethanol, and we have been able to add value for that customer part. And then we have the Naturet brand that in -- especially in Finland is a success. Now that energy prices are rocketing. We -- I mean, this is the thermal fluid that is installed in the heat systems when you drill holes into the ground. So the fluid then extracts the heat from the ground and brings it up. So it's a fluid that circulates. It's environmental friendly and circulates in the pipes. It's a very efficient plant. 24/7 operation throughout the days, the months, the years, but taking only 3 operators to run it per shift. Three operators are running 2 factories in parallel, the starch plant and the distillery, taking -- managing the incoming grain loads and dispatching the goods out. This, of course, wouldn't be possible without a very tight cooperation with the experienced subcontractors, the partners I already mentioned. Another example is the flexibility. I mean based on the market demand, we are able to adjust between grain spirit and technical ethanol. Similarly, we are able to adjust between ethanol and starch depending on the conditions on the market. And then last, the sustainability part that has been mentioned several times. I mean the material efficiency, thanks to the design of the plant and how it's been run. We are approaching 100% in the material efficiency. So it's really, really, really fabulous. As to energy, the heat -- I mean, distillation takes a lot of energy. Fortunately, more than 50% is produced by our own bio plant, as we are burning the husk from the grain. So that helps us a lot with the challenging energy market. And then CO2 was mentioned already. We have reduced the content significantly and are on the way to net zero by 2026. Let's then move on to the efficiency part. Here, I'd like to emphasize the -- I mean, the culture of continuous improvement as the primary driver. And that is something that is lasting from 1 year to another. And it's something that we have been fostering in Anora plants since a very long time. You see a couple of graphs here that come from Rajamäki. I think its development since 2014. And during that time, the volume in that plant has been stable. So there's no big increases nor any significant decreases, so quite flattish. Still, by help of the continuous improvement that is visible in the overall equipment efficiency, I mean, meaning that we are able to push more volumes through while the lines are operating, we've been able to reduce the total number of working hours. That then becomes visible in reduced cost. But similarly, the continuous improvement is a tool for also quality. I mean here's the picking error development is an example, but also the services. So as such, it's a talent that -- it's a set of skills that is extremely valuable. And this is something, as mentioned, we are bringing to all of the plants and logistics sites. The other driver I'd like to take from -- out from here -- from this page, is the execution capability. You have promises and plans, and then you need to execute. And this example is from the synergy work that started 15 months ago. The share of supply chain was [ EUR 8 million ]. And I'm happy to announce that more than 60% of that was delivered during the first 12 months. And the spearhead here was the logistics. Here in Norway, in Sweden and in Finland, we integrated the logistics into -- I mean to be -- under our own roofs, so that naturally gave us a nice boost. But overall, the execution capabilities is the main thing. So there's some efficiencies that have been caught, but what is more important is that we have identified additional potential in the -- in our road map. Throughout this year, we have identified the potential. We have used an external adviser to help us with that work. And now that we also have Globus Wine on board, we have concluded that we have a potential of EUR 5 million to EUR 10 million to be implemented during next 3 years. It won't take any special, unexceptional investments or anything like that. It's very much on the core of our workings. The scope is within logistics efficiencies, daily management, it is within how we run, further improve our bottling lines, take care of the utilization. And of course, procurement plays a big role as the volume are growing. So our efficiency within this plan is not dependent on closing any factories or addressing the footprint. It comes from the organic work. And we feel it's realistic and doable. To conclude, the -- I mean, we maintain a culture of continuous improvement with the execution capability. We foresee additional potential that we believe is doable, realistic, in total, 5 million to 10 million to be implemented in 3 years. On the sustainability, we have programs ongoing. We have a nice track record already behind us, and we have identified the means how to achieve our goals. And then, in addition, there's a couple of growth engines by which we support the Anora, the growth of both spirits and wines, including distillation innovations for both Aquavits and Vodkas. We are managing a competitive filling business. I mean we have, since many years, worked with partners like Brown-Forman or Distell or Globus Wine [indiscernible] and so on. And that gives us growth opportunity. And it also then is challenging our competitiveness at the same time. And then we are offering our wine and spirit business, we are offering the capable efficient route to market. With this, I would like to conclude my presentation. Thank you. [Presentation]

Okay. Thank you, Hannu, and Janne, for your presentations. We now open up for questions on Wine and Industrial.

And as in the previous Q&As, we take questions from the audience, and then we take questions that we have received through the webcast. And is there anyone who would like to start with the questions? Joni, please go ahead.

Yes. Couple of questions from me. Regarding wine, it's interesting to hear about partner filing and opportunities on this side. You had a 8% share of partner filling. How much of this was Globus Wine?

A major of that. So my guess would be 80% of that would be Globus Wine as it is today.

Okay. And when I'm looking your bridge here, its partner filling is only in Denmark that you are seeking growth. Is it -- there is no room in other countries? Or how should we view this?

What I think it's more the other way around. I think now, Globus Wine is quite full with capacity. So I think then it's a discussion between Rajamäki and Globus Wine, and where do we take all the new business that definitely will be on our way.

Okay. Then maybe on the Industrial side. You had a EUR 5 million to EUR 10 million efficiency plan going on. How much of this is hard benefits from the cost side, and how much is required organic growth when thinking, for example, higher utilization ratio? So how much is real cost benefits that you are seeking?

I don't have an exact figure in mind for that, but I would say, 50-50. So half is built from the upcoming growth and the other half is based on existing volume.

Okay. And then maybe related to this year about the revenue management, you have been using quite a lot of less barley this year. So how you manage these volumes now? And given the quite high barley prices still, are you expecting to run the business still in cost and grow with the lower volumes? Or how should we view this going forward?

In fact, now that the barley price has come a little lower, we have been able to increase the speed already. So it will -- it started during this Q4. So immediately when the price level gives the opportunity, we have taken the action and believe that it gradually will normalize in that sense. So we are looking for a bigger output in that plant.

Okay. Last one. From the wines, about the partner portfolio, there has been some changes during the past year in the portfolio. How you see your position in the market currently when thinking possible new partners going forward?

Well, definitely, we see it's very, very good. And I think it's important to understand that a player like us, we work all together with more than 200 partners and partner business is such that if you win, you lose. So I think in terms of number of partners that we've been gaining or losing in the past one year, we definitely are on the winning side. But then, again, maybe some size of some partners that we've lost takes a little bit more time to mitigate. But we really believe that now when we put together the both ex-Altia, ex-Arcus side partner business under Vingruppen that is by far the largest and should be the most interesting partner entity in the Nordics to collaborate with. So -- but at the same time, you will always see partners leaving and coming, and we will be focusing more in the coming moving forward.

Yes. Maybe a follow-up on that. I mean, now you are in Vingruppen, everything. So has there been some partners that don't want to be with the same distributor?

Not really, because I think then the benefits that we can put together in Vingruppen, at the core of Vingruppen is the market-leading on-trade for wine alone. And again, if you have a look at premium wine partners, on-trade is really the place where they want to be. And this is what we can offer to them. So I think -- until now, I think then the remarks from the partners, having now been grouped under Vingruppen has really, really been only positive. Because then they don't sort of have to compete with the -- in any way with the spirit side of the business, with the own wine side of the business, but they can really get their own route to market where they want on-trade to be in the core of all of that.

Okay. Next one from Maria.

This is a little bit of a follow-up to Joni's as well. I mean, to get us understand more the -- like how does it work with the wine partners as there have been some volatility as mentioned, that what is the key -- like what is the reason for a partner to change? Is that like a negotiating about the price? Or is that negotiating about the performance? Or how does these negotiations go when you have lost something and when you now gain new ones? So help us understand a little bit there.

Yes. Obviously, the reasons are many. I think the way I see it, it's a little bit like a divorce. There are many reasons for that. I think the most recent partner losses that we've had in Sweden, actually, the most interesting fact is that actually we've been doing all too good of a job. Meaning that we've been able to grow those partners to such big size that they had now the critical mass to start their own company in Sweden. So it really is very, very diverse. And I think, again, this year is a bit particular. Again, we coming from 2 fantastic years with Corona-boosted volumes, 2021, 2022. No partner, whatever was growing their sales exponentially and now comes back the reality of '22. So then there are, again, partners that would be thinking that, with somebody else, we could go back to '22 and '21. How realistic that is? I'm not really sure, but the range is very, very large. And I think now, I guess, you've been hearing, especially 1 or 2 big partner losses we had in Sweden. And actually, it was us doing too good of a job so that then they could go and have already the volumes to start their own company in those countries.

So both of them just started their own?

If you're talking Francois Lurton and Masi, yes, that was the idea.

Okay. So they didn't go to Viva Wine Group? No.

No. No.

And then about the cross-selling opportunities, as you presented earlier that Globus Wine has a significant share of own brands in Denmark. Then do you see there is potential to bring these brands also to other Nordic markets?

Absolutely. And that's what we are doing already. We are already seeing in Sweden, the first launches of Il Capolavoro from Denmark. So we are currently in our process through then the sales, 2 other order assortment, listing them to Sweden because of Sweden is the biggest market. That's where we want to act first, but absolutely, for next year, you will be seeing these brands also entering Alko, and Vinmonopolet, absolutely.

And then finally, if you could little bit give a more color that what is the -- like what is the most important when -- or like how do you start with developing own brands in the wine segment? That is -- does it start with -- I mean, as you said, like Italian wines is a big country for wines drank in the Nordics? And do you start from there, or how does that go that, I mean, which makes like a popular own brand in the Nordics?

Yes. I think it does from a much more pragmatic analysis because you might be aware that each of the monopolies, they work in these ranking segments. In each of the countries, there are more than 200 ranking segments, more than 100 segments for wine. So in each of those, there are certain number of ranking positions, which gives you national listing. So it is really a big study of where the opportunities are biggest, and that's normally then where we would go after our new own wine launches. So it is a study of the market based on really practical segments and segment rankings of where do we see the biggest options. Because often that all relates back to how much sales we need to get in order to get our products to the rankings and through rankings then to permanent distribution in the monopolies.

All right. Thank you. So we have a few questions through the webcast. So there is one for Janne and then there's a couple of questions to Hannu later on. But let's take this one for Janne first. So for spirits, you gave an indicative number on the market investment as percentage of net sales. Can you share the same for wine?

I don't remember what we said for spirits. But definitely, we can see that the investments we've been having in the past for own wine, we've been somewhere 5% of net sales. And I think for our next year plans, I see us doubling that, meaning that we will start becoming much more competitive when it comes to own label wine investments, especially in the key market of Sweden.

Good. Then a couple of questions to you, Hannu. So how do you cope with the challenges on the grain -- barley market in regard to both price and availability. And how is Ukraine situation impacting when the impact remains unknown for the months to come?

Certainly, a very tough situation, I mean, both questions. Ukraine was a big country for the grain and like Russia. And of course, it had its impact, and we've all been reading of the vessels waiting for the shipments and so on. The impact on Anora is indirect, not direct. So we haven't been sourcing any grain from Ukraine directly, but it impacted the global balance of grain because the prices are following each other between the markets. And we had a tough year of harvest in '21, consuming all buffers that existed on the market. And despite the fact that '22 was much better in Finland, and the prices have started to come down, still the Ukraine is impacting the pricing. So they haven't come to the -- should I say, the old normal level, but remained high.

Okay.

So it is a sensitive situation. But in terms of supply, we are confident that in Finland, I mean, there's enough of reserves for the upcoming season.

Good. And then a quick answer to this last question. So is there a plan to start produce cans in Rajamäki or Globus?

I think this was, Pekka mentioned it already in his response. We are looking at it as part of the strategy. And the -- I mean there's obviously major -- a good growth opportunity there with the grocery and also the cost of goods sold was mentioned. So definitely, we will look into it and the technical capabilities exist. So it's a matter of the business case then at the end.

Okay. Good. So let's finish this Q&A session for now, and it's time for us to move on to the last topic on our agenda. So you will next hear our CFO, Sigmund Toth, talk you through the financials and followed by a Q&A together with Pekka. So Sigmund, please go ahead. [Presentation]

Thank you very much for the opportunity now to present how -- all of the wonderful things that you've heard from my colleagues, how it adds up into numbers. So most of my presentation is going to be about the future. But let me start by recapping a little bit the current situation by looking back at our performance in Q3 of this year. So Q3, I mean, or this year as a whole in 2022 is quite a difficult year if you compare to the very, very good years that we had in 2020 and 2021. And the reason for that is we were one of the companies that, in some sense, benefited from the pandemic because consumer purchasing patterns shifted to channels where we have a higher-than-average market share. Specifically, a lot of volume shifted to the monopolies and in particular, to Norway, where we have a high market share in both spirits and wine. And what that led to was very, very good results from us throughout the pandemic. Now, as the situation is normalizing after COVID, you can see that consumer purchasing patterns are returning to normal. People are shopping in duty-free, people are shopping in on-trade and the volumes are coming down, as you can see on the graph here to the left. So what this means for us then is that the exceptionally high results that we had in 2020 and 2021, they are coming back to a more normal level. If you look at net sales, we did grow those by 10%, but it has to be said that, that's entirely due to the contribution of the recently acquired Globus. Globus is doing very well in its own right also when comparing to its last year, but we get now the full effect of the acquisition since Globus wasn't in our base numbers. But again, when you compare then to a more normal year of 2019, you see that our current performance, it does compare favorably, so isn't that the performance is bad, it's simply that we are facing some headwinds after very good results in '20 and '21. Same thing can be said for EBITDA. Again, if you compare to 2019, we are at the same level even when excluding Globus. But then there is the decrease of the net sales compared to the high levels of the previous years and a series of headwinds, including the barley cost and other cost inflation that we are mitigating through price increases, but it is the difficult external conditions. So that's Q3. Now another important topic before I move on to the future is the synergy delivery. We promised before the Arcus, Altia merger that we would deliver EUR 8 million to EUR 10 million on a run rate basis of net synergies and that 80% of those synergies would be delivered in the first 2 years after the merger. Now the situation is that we are well on track with delivering those synergies. As on a run rate basis, at the end of Q3, we've already delivered EUR 5 million of net synergies. So when you compare that to the 80%, after 2 years, after 1 year, we are already at EUR 5 million. So there's still some left to deliver, but as Hannu explained, he has further synergy plans. And we will integrate the tracking of the remaining synergies together with the efficiency program that was just mentioned. So that's for the past. Let me now turn to the exciting future and show you our financial targets. So here are the financial targets that you already know because they were published last week but let me give you a bit more of color on them. And you can say, I said that we are now moving to the future. But in reality, these financial targets, you can group them into 2 categories where there is change and then there is stability or permanence. Let me talk first about where we are changing or actually increasing our ambition level, and that is on the sales growth target. So as you've heard, we aim for 3% to 5% of net sales growth. That compares to 2% that Altia had as a target at its IPO. 16% comparable EBITDA margin, that compares to 15%, which was the long-term target of Altia. So you can say that we are trying to increase our ambition level on both the top, but also on the bottom line compared to the previous targets. So that's one side of things, right? But if you look then at the other side, which is the leverage level, which we aim to have below 2.5x comparable EBITDA, and the dividend payout ratio, what you can say is that these are very similar to what we've had in the past. So in terms of the debt, very important KPI, the leverage. Occasionally, we may go above this level when we do an M&A, such as when we recently acquired Globus, but then the strong operating cash flows will, in a short period of time, bring us down to below this long-term target. Dividend, I think that's very important. A lot of people, and I'm turning to the camera for the people watching through the webcast, I think it's a very, very important part of the Anora story. It was for Altia, it was for Arcus, is that, as Pekka explained, we are a stable company with a noncyclical business. And it's very important to our shareholders, and therefore, very important for us that we maintain a stable and, if possible, increasing dividend. And that's why we are reaffirming and setting as a target this very attractive level of dividend payments of 50% to 70% of the result for the period. Okay. So those are the overall targets. Let me now turn to the breakdown of the net sales, which is essentially a summary of what you heard from my colleagues. So a starting point is the pro forma EUR 665 million, which was in 2021 for Anora. Then we have already acquired Globus, and that brings us to EUR 739 million as starting point for 2021. What you can then see the 3% to 5% is coming through broad-based growth, right? And by broad-based, I mean that all the relevant commercial parts of the business will be contributing to that result. The biggest chunk will come from the international part of spirits. You heard Kirsi talking about how we will invest behind the hero brands and, in particular, Koskenkorva, and how we will expand our already existing markets to the full scale in Denmark and in Baltics. In the monopoly part of spirits, you heard from Pekka and Åsa. Again, how we will invest in growth with the partners, focusing on the hero brands, protecting our and optimizing our local warriors and trying to capture the very promising NoLo and RTD segment, which is fast growing and where we have a limited presence today. So that is adding up to the growth contribution of the monopoly part of spirits. And then you just recently heard from Janne, who is talking about wine growth and how a lot of that will come from own brands within wine. And part of that, obviously, is also the continued growth of Globus, which has a very, very strong track record that you'll hear more about for those of you who are present here physically during lunch from Jens, and we plan for that to continue into the future. So all in all, we have strong growth plans across the entire business, and that is what we hope adds up to 3% to 5% annual growth, which would then make us roughly in terms of revenue EUR 1 billion company. Okay. But you're investors, right? So net sales, I mean, it doesn't pay the bills as they say. Well, it does pay the bills, but it doesn't pay for the returns. So all of that isn't worth much unless it turns into EBITDA. So let me talk a little bit about that. So our target of 16%, right, at the end of the period, that doesn't necessarily sound that exciting if you compare it to the 15% that we had already on a pro forma basis last year. But you have to remember then, as we said, there is a post-COVID normalization, which you can see when you compare to the 2019 results. So about 3 margin points come off as we shift the sales to less profitable channels with the COVID normalizing. So that's the starting point, right, the 3% off. The acquisition of Globus is actually compared to that new base is pretty much neutral. So it is contributing a significant amount of EBITDA as of acquisition, and we hope will contribute significantly more as we go forward. But in terms of the average profitability, it doesn't very much impacting. And then we come to 2 very interesting building blocks, which go in the opposite direction. And I think that this is what a lot of you were asking about during the presentation. And here, the basic idea is that the efficiency gains presented by Hannu will pay for the extra investments into the growth markets, right? So what we aim for to start with is to try to keep a balance between those 2 so that you kind of pay as you go, and you pay for the growth through stable margins. Obviously, in the individual markets, if you look at international in isolation, if you look at own brands on wine in isolation, those may see a dip in profitability in isolation, where you're investing like all kinds of investment, but the idea is one that you shift them from other parts of the business. And on top of that, the incremental A&P in the beginning of the period is paid for by the efficiency gains that Hannu talked about. That then, we hope, adds to top line growth. And both the mix of shifting more into the beverage business and within the beverage business into the higher-margin parts of the business such as own brand wines will contribute positively to the mix. And then as the sales grow, we aim to have further efficiency or scale effects on our overhead costs, which will then contribute more towards the end of the period, but gradually, as the turnover grows to 4 percentage points improvement in the profitability, adding then up to the 16%. So that's for EBITDA and EBITDA margin. Now again, as I said, net sales not interesting if it doesn't translate into EBITDA. EBITDA is not very interesting if it doesn't translate into cash flows, right? So let me talk a little bit about the cash flows. And here, again, I mean, we talked about how we're stable, how some things are not changing. And again, it's a bit the same story here. Anora and, in the old days, Altia and Arcus, they were businesses that are characterized by strong operating cash flows due to our business model. And that's something that we aim to continue with during this period. As we -- as I've just said, we finance organic growth investments to efficiency improvements and try to maintain stable margins. So that's one thing. Second thing is that we are -- in the big picture of things, we are well invested, right? So obviously, as Hannu has mentioned, we will have to continue to invest in sustainability. At Koskenkorva, we will have to invest in new packaging formats to have sustainable packaging. We may even have to invest into a canning line, right, if that turns out to be the right business case. But in the big scheme of things, given the fact that we are well invested and that we aim to improve the efficiency to free up capacity for more volume, CapEx will remain at the current levels of around EUR 10 million annually. So that's important. Third point then working capital, again, something which is stable. It will vary. And as those of you who followed us, they know that there are big variations in that from quarter-to-quarter given the seasonality of our business. But on the whole, we expect that to remain fairly stable as a percentage of sale throughout the strategy period and the international expansion strategy, for example, is not expected to have a material level -- material effect on the working capital levels. Okay. So, so far, so good. So we talked about net sales, EBITDA, cash generation. Those are mainly then the organic parts of the story. But let's talk a little bit about M&A and what part that plays in realizing our strategy. And basically, that's the M&A strategy. The M&A strategy is about supporting the strategic pillars that we've talked about. Nothing more, nothing less. So we talked about one strategy is to lead category growth across the consumer occasions and channels in Sweden, Norway and Finland, right, really the monopoly markets where we are the wine and spirits powerhouse. Well, in those markets, we are present in many or not all -- if not all of the categories. So that is about complementary assets, right, that gives us capabilities that we don't have. So one of them, for example, which was mentioned already by Åsa, we are aiming to grow in NoLo and in RTDs. There is maybe that we will invest or we will acquire assets that give us capabilities in on-trade, in grocery trade, in digital, in the supply chain, in R&D that we don't have or that would be very costly to build internally. And the good thing is here, this is not just a theory, we can actually talk about some acquisitions that we did recently or some investments. So we invested EUR 5 million into ISH, which I think is a very, very promising Danish company that is operating in the no- and low-alcohol category with great growth potential. And as part of that, at the same time, we also took over the distribution of their products in the Nordic markets. So that's one example that's helping us. Another smaller one, but it's also very interesting in how we can expand on our footprint and our already presence in the category is Glöet. For those of you that don't know, Glöet is actually a sparking -- sparkling glögg. Glögg, of course, is a category through Glöet that we're -- Anora is very much present already. But in the sparkling glögg, interesting innovation. So there again, the story was that we co-invested with some entrepreneurs, founders that built the company. And then once they built it to a certain level through our help where we were the distributor, we recently acquired 100% of the shares. And now we've expanded our presence and cover a niche that we didn't yet have. So that's for the Nordic markets. And then Denmark and the Baltics. Again, it's a bit the same story. It's good to be able to stand here and not just talk about the theory because, of course, M&A, given its confidential nature, it's not necessarily something that you can always give a lot of color on. But in terms of Denmark and the Baltics, what our strategy is, is illustrated very well by Globus Wine. In 1 acquisition, we went from basically not being present in wine, for all intents and purposes, in Denmark, we had some small direct sales, but not anything worthy of mention, to becoming the market leader, right? And then we are the #2 in spirits, and now we are the #1 in wine in Denmark. So I think it's a good illustration of the sort of acquisition that we are looking for in Denmark and Baltics. It's about supporting the strategy of becoming a full-scale player in those 2 markets. Okay. One, the last one, where we don't have anything in the investments completed yet, but obviously, we are continuously looking for opportunities, and that's to accelerate beyond the Nordics with the strong sustainable hero brands. So as Kirsi mentioned, if there are opportunities then to have the right route to market, you can always go with distributors, but maybe there is an opportunity to acquire assets with route to markets. Maybe there are other insurgent brands that could fit into our portfolio, or maybe there are assets that could give us access, for example, to digital. So that's essentially M&A. M&A is about supporting the overall strategy of the company. It's not about building an empire or going off on tangents. So now we're close to the end of my presentation. So let me just have one final slide before we take your questions that sums up why Anora is a good investment for you. And essentially, it's about the value creation happening with higher growth at improved margins with a strong cash flow and stable dividends. It really is as simple as that. We've talked about how we plan to increase revenue growth through market share gains in the home markets and international expansion, and how we will use M&A to strengthen our capabilities and expand our footprint. So that's the higher revenue growth. Then the improved margins, the efficiency gains in production are to finance the investments and also then to improve the margins. Strong cash flow generation. We're well invested. We have relatively limited CapEx needs. We have low and stable working capital. And then last, but definitely not least, it's very important to us because it's important to you, the investors, to have a dividend policy that reaffirms the importance of an attractive dividend as we go along. So that was my presentation. Thank you very much for your attention. We are now ready for your questions together with Pekka. [Presentation]

Okay. Thank you, Sigmund, for your presentation. So as said, we open up for the questions, and we start with questions from the audience. Maria, please go ahead.

Thank you. Wanted to come back to the EBITDA bridge that you provided. And you mentioned here that the investments will be about 2% out of the EUR 101 million, so EUR 2 million annually. And if I heard correctly during the presentation, I think you were investing in international growth, hero brands in home markets, local heroes and own wines. So is this EUR 2 million really enough?

Well, I think it's 2% of the revenues, right? So yes. So...

So then I read this wrong. Okay.

Yes, 2 percentage points of the revenues. But -- so it's a bit more. But yes, I think that your question is fair, and I think it has -- we also plan to reallocate funds. So it's not only about incremental investments. It's also about also about reallocating, as we said, from the local warriors to the hero brands and also within the existing portfolio of spend that we have to move it into where it's -- where it's providing more impact, right? And then also, as you heard from Kirsi, the thing is that you are using a pilot model, right? And it's called a repeatable growth model for a reason, right, is that you are not immediately spending all the money upfront, but you are investing kind of gradually as you go along. So you take 1 market. If it's a success then you scale it up and then you go to another market.

And then 1 more on the M&As. I think you are currently a little bit above the target level. So when do you think you can start acquiring again?

I mean, very good question. As I said, we have a very strong operating cash flow. So we can come relatively rapidly down to below the target level. And that's kind of our approach is that we are fine with being, for a period of time, above the target level. But what's important to us is that we relatively rapidly come down there. So it's not -- in my mind, it's not that because we are above the target level at the current point in time that acquisitions are kind of off the table. But it's more about being able to show investors and the banks as well for that matter, if we need financing, that we have a plan to rapidly come down to below the target level.

Okay. Then we have questions from Joni.

Coming back on the EBITDA bridge. Maybe if you can give us some color on the time frame regarding the investments, impact on the margins?

Well, I mean, I think that the -- and this was a question that was raised a bit earlier as well about how -- what does the time frame kind of look like? So I mean, in my mind, the -- it's really -- and I talked about those 2 elements in the bridge, the efficiency and the investments very deliberately as kind of like a whole, right, that are supposed to be balancing each other out, right? And that's really sort of the thinking that, in the short run, you try to get the efficiency gains sufficiently fast that you can finance the investments, all right? So that means, in very simple terms, that the margins are stable rather than increasing in the beginning, right? So I mean, that's already better than investing upfront, margins going down. And then at some point, we hope that they come up. For individual areas, as Kirsi mentioned, obviously, if you're investing in a given market, big amounts of marketing to get the growth start in that 1 market, margins will go down. But on a corporate level, what we're aiming for is essentially to kind of balance and to have a stable margin in the beginning of the period, right? How long exactly, that is difficult to say, but let's say, for the first 2 or 3 years. And then as you gradually sort of ramp up, you roll out this mix. So that will come a little bit later in the period. I don't think -- unfortunately, I can't promise you faster growth with increasing margins from the very start. That I think would not be credible.

Yes. Then maybe a bit about -- still about the cash flows. We know that you have a good operating cash flow. But I'm just thinking cash conversion a bit and then if we are assuming good cash flows now, then the 50% to 70% can look, how would I say, a moderate distribution if you are not finding pretty much every year, something to acquire. So can you walk us through a bit here?

Well, I mean I think in the end, it's our Board who will decide on that on a year-by-year basis. I think that already, the range of 50% to 70% is somehow partly addressing your question, right? Because the point is not for us to build up huge reserves or cash or to be -- to not be investing that or distributing that. So of course, the idea is that we are looking for good potential acquisitions. If we find them, fantastic. If we don't find them, then obviously, we will make the dividend distribution a priority. But again, I think the investors in this share that are looking for stability, I think they would rather see a dividend that's stable and that's gradually increasing than that we go up and down like a yo-yo every year. So that's more our thinking around that.

Okay. Then last one from M&A. If you are now looking your opportunities in the field, so which -- in which part -- of course, we know that the international, you need maybe route to market. But is this the first one that you are looking currently if you have to rank different opportunities in the market?

About -- on M&A -- well, I mean, I think that with M&A, what's interesting is that you can do all the sort of rankings, right, in the world that you like about the potential things that you would like to buy, but unfortunately, it's not like a store where you can go and you can buy that one. It has to be for sale and it has to be the right one, which is for sale and it has to kind of fit in. But I mean, I think -- I wouldn't want to rank them because it's based on what's available for sale. But I would say that, obviously, when you're talking about international expansion, having the opportunity to have then the good go-to market, I think, would be of great interest to us. But I mean, if you look at what we did just recently, one of them was that nature where you could say that Globus is sort of similar thing to that. And the other one was ISH, which is about complementarity and having part of the lottery ticket of exponential growth in no- and low-alcohol. So again, opportunity was there, and we seized it on both occasions.

Yes. Last one, actually. About the CapEx, it's -- you are saying that around EUR 10 million. But let's assume that now you need a new bottling line or canning line. How large investments we are then speaking?

I think I don't have that off the top of my head, I would have to have a chat with Hannu about that one. But I think that, over this period of years, we can manage that within that envelope. So maybe I will have to tighten the screws a little bit on some of the other investment ideas.

Okay. So we are quite tight on the schedule. But Rauli, if you have 1 critical question, we would have time for that still.

Okay. Yes, I have also my question on the EBITDA bridge. Just to be clear, that since starting from '21, so the efficiency gains is basically also including all the merger synergies you have created this year?

Yes, you could say that it includes the full year impact, right, because what we presented, the EUR 5 million is run rate. And obviously, we're doing that during this year. And it includes then the balance, right, because we had 5 million and we said 8 million to 10 million. So we haven't forgotten about that part, and we will realize that as well. But there is no -- unfortunately, there is no bonus things that has not been included yet.

No, I was just wondering that that's kind of also part of the kind of efficiency savings you are then investing further so we shouldn't expect the merger synergies created this year to kind of accumulate on the earnings and margins immediately.

No, that's correct. That's correct.

Okay. And then we have -- we can take one question from the online audience. So it's also about the EBITDA bridge. So which of the mentioned elements plus or minus, are you most concerned about, i.e., which of them is the riskiest one?

Well. I don't know if you want to rank them by risk. I think that -- as Hannu mentioned, we are relatively confident about our efficiency gains. And we have a track record of delivering those as usual. I mean the spending, I think, we'll find a way to do the spending. And, again, in terms of the spending, I mean, what you need to remember as well, again, the rollout of the international is a gradual pilot-based approach, all right? And on new savings, the efficiency gains there "forever," all right? If you do them, they are there. If the A&P, the marketing spend that you have spent turns out to not give the return on investment that you hoped in a given market or at all, you can always roll it back then essentially you lost a year or 2 in trying something that gave you some sort of upside. So I mean, if I have to give an answer to that, what's the biggest -- we have high ambitions, and obviously, accelerating the growth further, I mean, it's going to be a tough challenge. But that's why we are here to work hard to achieve that with the good plans that we've outlined for you.

Great. Thank you. This was the last question. And we are now concluding the webcast with Pekka's closing remarks.

All right. Thank you. Thank you, Tua. It feels amazing to be at the end. It's been a big day for us. I would like to wrap up by, first of all, thanking my amazing EMT team for inspirational, strong presentations. I would like to thank you here in Gjelleråsen and for being as our guests. Those of you online, thank you for all the great questions. I hope you agree with me that we have strong plans. And I think Sigmund just gave a perfect presentation on how those plans turn into money in the short and medium term. Something that we haven't talked enough about are the 1,200 skilled and dedicated employees that we have. They are there out in the market, exciting our consumers and energizing our customers, and they actually make this plan live. So that will be our biggest focus and our biggest strength as well. Now for you guys online, I thank you for your participation and for you here in Gjelleråsen, we are getting ready for Aquavit tasting. So with that I say thank you very much.