Wetteri PLC — Earnings Release 2024

Mar 13, 2025

Wetteri Plc financial statements bulletin for the financial year 1 January to 31 December 2024: Revenue increased - challenging market situation weighted on profitability

Wetteri Plc financial statements bulletin for the financial year 1 January to 31 December 2024: Revenue increased - challenging market situation weighted on profitability

Wetteri Plc Financial Statements Bulletin 13 March 2025 at 9.30 EET

This is a summary of Wetteri Oyj's financial statements bulletin. The financial
statements bulletin is attached in its entirety to this summary and can be read
on the company's website atwww.sijoittjat.wetteri.fi/en.

The key figures and information for the financial years 2024 and 2023 presented
in the financial statements bulletin include both the Group's continuing and
discontinued operations, unless otherwise stated.

Summary of the review period 1 October to 31 December 2024

· The Group's revenue was EUR 116.8 million (EUR 131.1 million)
· Adjusted EBITDA was EUR 3.6 million (EUR 6.8 million)
· The adjusted operating profit was EUR -0.3 million (EUR 3.3 million)
· The operating profit was EUR -1.8 million (EUR 0.7 million)
· The revenue of the Passenger Cars segment decreased by EUR 20.2 million (
-23%) year-on-year
· The revenue of the Heavy Equipment segment increased by EUR 6.6 million
(43%) year-on-year
· The revenue of the Maintenance Services segment increased by EUR 2.6 million
(12%) year-on-year

Summary of the financial year 1 January to 31 December 2024

· The Group's revenue was EUR 514.5 million (EUR 443.3 million), with an
increase of 16%, which was mainly generated through strategic acquisitions
· Adjusted EBITDA was EUR 20.7 million (EUR 24.9 million)
· The adjusted operating profit was EUR 5.1 million (EUR 12.0 million)
· The operating profit was EUR -0.2 million (EUR 5.4 million)
· The revenue of the Passenger Cars segment increased by EUR 43.3 million
(15%) year-on-year; invoiced sales of used cars grew by 58%
· The revenue of the Heavy Equipment segment increased by EUR 15.4 million
(23%) year-on-year
· The revenue of the Maintenance Services segment increased by EUR 21.5
million (28%) year-on-year
· The car dealership business operations of the Suur-Savo Cooperative became
part of Wetteri through an acquisition on 1 January 2024
· Suvanto Trucks Oy became part of Wetteri through a share exchange on 29
February 2024
· Lahden Rekkapaja Oy became part of Wetteri on 28 June 2024
· Wetteri announced that it will sell its subsidiary Wetteri Power Oy

Wetteri Plc's financial guidance for 2025

· Revenue EUR 510-540 million
· Adjusted operating profit EUR 9-11 million

Key performance indicators

EUR thousand 1 Oct 1 Oct Change 1 Jan to 31 1 Jan to 31 Change
to 31 to 31 Dec 20241) Dec 20231)
Dec Dec
20241) 20231)
Revenue 116,765 131,089 -11% 514,519 443,287 16%
EBITDA 2,629 4,662 -44% 17,638 21,009 -16%
EBITDA, % of 2% 4% 3% 5%
revenue
Adjusted EBITDA 3,643 6,783 -46% 20,663 24,918 -17%
2)
Adjusted 3% 5% 4% 6%
EBITDA, % of
revenue
Operating -1,847 702 -363% -188 5,351 -104%
profit (loss)
(EBIT)
Operating -2% 1% 0% 1%
profit (loss),
% of
revenue
Adjusted -302 3,343 -109% 5,088 12,030 -58%
operating
profit 2)
Adjusted 0% 3% 1% 3%
operating
profit, %
of revenue
Profit (loss) -4,715 -2,775 70% -12,063 -3,824 215%
before tax
Profit (loss) -4% -2% -2% -1%
before tax, %
of
revenue
Profit (loss) -3,873 -2,963 31% -7,139 -4,049 76%
for the period
Profit (loss) -3% -2% -1% -1%
for the period,
% of revenue
Earnings per -0.02 -0.03 -0.10 -0.06
share from
continuing
operations,
basic
(EUR)
Earnings per -0.02 -0.03 -0.10 -0.06
share from
continuing
operations,
diluted
(EUR)
Earnings per -0.02 -0.02 -0.05 -0.03
share, basic
(EUR)
Earnings per -0.02 -0.02 -0.05 -0.03
share, diluted
(EUR)
Return on -45% -35% -30% -13%
equity (ROE), %
Return on -18% -15% -15% -9%
investment
(ROI), %
Equity ratio, % 15% 16% 15% 16%
Liquidity, % 74% 83% 74% 83%
Average number 974 1,007 1,016 926
of personnel
during the
financial year
Invoiced sales 782 848 3,472 3,322
of new
passenger cars
(pcs)
Invoiced sales 32 43 143 181
of new
commercial
trucks (pcs)
Invoiced sales 1,835 1,553 9,082 5,764
of used
passenger cars
(pcs)
Invoiced sales 122 29 406 114
of used
commercial
trucks (pcs)
Orders: new 974 699 3,647 2,862
passenger cars
(pcs)
Orders: new 55 17 186 127
commercial
trucks
(pcs)
Passenger cars: 36,606 57,343 36,606 57,343
order backlog
at the end of
the period
Commercial 21,743 13,655 21,743 13,655
trucks: order
backlog at the
end of the
period
Passenger car 87,859 83,908 349,404 319,562
repair shop:
hours sold
Commercial 31,736 30,295 113,750 110,759
truck repair
shop:
hours sold

1) The financial performance figures for the 2024 and 2023 financial years
include both the Group's continuing and discontinued operations unless the name
of the key figure indicates otherwise. The training business operations sold in
the first half of 2024 and the subsidiary Wetteri Power Oy sold after the end of
the 2024 financial year are presented in the financial statements release as
discontinued operations. Correspondingly, the income statement items of the
discontinued operations are presented in the consolidated income statement for
the financial year as part of the profit (loss) of the Group's discontinued
operations, separately from the income statement items of the Group's continuing
operations. The presentation of the income statement for the comparison period
has been adjusted accordingly.

2) The adjusted EBITDA and operating profit do not take items affecting the
comparability of the Group's EBITDA and operating profit into account, such as
significant non-recurring items of income and expenses and amortisation of the
fair value of assets recognised on the balance sheet by means of acquisition
calculations. The purpose of the adjusted EBITDA and operating profit is to
improve the comparability of the Group's EBITDA and operating profit between
periods. The reconciliation of the adjusted EBITDA and operating profit is
presented on page 20 of the financial statements bulletin.

Aarne Simula, CEO:

“2024 was a historically weak year for the automotive sector. The number of
first registrations of new cars fell far short of the levels of recent decades.
Economic uncertainty and low consumer confidence strengthened the negative
impacts. Despite the headwinds, we systematically continued to implement our
growth strategy. During 2024, we completed 5 company and business acquisitions,
including the largest corporate transaction in our history: the sale of Wetteri
Power Oy to the Swedish company Persson Invest Ab. The transaction significantly
strengthens Wetteri's balance sheet and its ability to execute strategic
acquisitions, and thus provides excellent support for the company's growth
strategy. The strategic business arrangements carried out over the last year
will strengthen our position in the automotive market, which is undergoing major
changes, and will increase our market share in the overall automotive market.

The turbulence in the operating environment was reflected in our financial
performance. Our adjusted EBITDA fell short of the previous year's level and was
EUR 20.7 million. The Group's revenue increased by 16% from the previous year as
a result of corporate transactions, amounting to EUR 514.5 million. The adjusted
operating profit was EUR 5.1 million.  Of Wetteri's business segments, the
Passenger Cars segment's net sales rose to EUR 327.8 million and adjusted
operating profit turned negative and was EUR -5.6 million.  The used cars
invoicing increased by 58%. The order backlog of new passenger cars at the end
of the year was EUR 36.6 million. The Heavy Vehicles segment's revenue increased
by 23% year-on-year. Its adjusted operating profit decreased by 17% and was EUR
3 million. The adjusted operating profit of Maintenance Services settled to EUR
6.9 million an increase of 21 per cent compared to the previous year.

In 2024, we launched an efficiency programme to improve profitability and save
costs. In 2025, we will continue efficiency improvement measures as part of our
continuous business development. With these actions, we reduced our debt
financing. The majority of Wetteri's interest-bearing liabilities on its balance
sheet are related to the consignment stock financing of used cars, the leasing
financing of demonstration cars, and lease liabilities related to the premises
and equipment rented by the company. Consignment stock financing is a risk-free
form of financing for the dealer, in which the car under financing can be
returned to the financing company if desired.

The automotive industry is undergoing a historical transformation, and
operations will focus on a few big players. We see that now is the right time to
invest in the growth of the passenger car business. We will continue to develop
the Heavy Equipment business, for which we have excellent prerequisites thanks
to the Wetteri Power transaction. We have a strong position in the used
commercial truck trade. Commercial truck maintenance will continue with five
brands.

According to the automotive forecasting group, the lowest point of the market
has been reached. The growth outlook for the automotive sector promises a growth
rate of 10%. In February 2025, customer orders for passenger cars were up 17 per
cent cumulatively compared to the previous year. As a result of a slower
decrease in the number of older cars, the average age of the passenger car fleet
increased to 13.6 years. In the previous year, the average age of passenger cars
was 13.2 years. The increase in the average age has been faster than in previous
years, as the number of registrations of new cars has fallen significantly short
of the long-term average. This creates positive pressure for the car trade to
pick up. Cheaper electric car models will also be introduced, meaning that the
average price of new cars will decrease, and this will lower the threshold for
consumer customers to buy a new car.

In 2025, we will continue our efforts to realise the synergy benefits of
acquisitions and improve profitability. We will also continue to expand our
brand representation to new locations, thereby strengthening our position to
negotiate other new brand representations at growing locations. An example of
these is Automotive Hedin Kia and Mitsubishi business transaction in Lahti,
announced in February, which brings our potential market share of Kia and
Mitsubishi dealerships in Finland to about 20%. With these arrangements, we have
built the conditions for future growth.

Our strategic goal is to achieve at least 15% share of the national market
potential of each brand we represent. We are also continuing to explore new
business and company transactions that support our growth strategy. Finally, I
would like to thank Wetteri's personnel, customers and all partners for the past
year and wish them success in 2025."

The Board of Director's proposal for measures concerning the profit for the
financial year

The distributable funds of Wetteri Plc, the parent company, are EUR 65.8
million, including the profit for the financial year (EUR -2.9 million). The
Board of Directors proposes to the Annual General Meeting that no dividend be
distributed from the result for the financial year, and that the result for the
financial year be transferred to retained earnings.

Estimate of future developments in the industry and the company

The number of registrations of new passenger cars and vans is expected to
increase by around 10% in 2025. Lower interest and inflation rates may increase
the demand for new cars as consumer confidence grows. The ageing car fleet also
creates positive pressure for growth. The increased availability of new cars
will contribute to the growth of demand.

During the current year, Wetteri has strengthened its brand representation
nationwide, which is expected to support organic growth. The used car trade is
expected to continue to grow. Maintenance operations are expected to continue at
a strong level. More affordable new models of electric cars will also enter the
market, as a result of which the average price of new cars will decrease, and
this is expected to have a positive impact on demand from consumer customers.

The company estimates that in the medium term, the car market will return to the
level of 100,000 first registrations per year. This is expected to have a
significant impact on Wetteri's net sales and profitability.

Annual General Meeting 2025

Wetteri Plc's Annual General Meeting is scheduled to be held on 20 May 2025. The
notice of the meeting will be published later.

Disclosure of financial information in 2025

Wetteri Plc will publish its financial reports in 2025 as follows:

· 13 March 2025: Financial statements bulletin for the 2024 financial year
· 24 April 2025: Annual report and financial statements for the 2024 financial
year
· 19 May 2025: Interim report for January-March 2025
· 28 August 2025: Interim report for January-June 2025
· 20 November 2025: Interim report for January-September 2025

Oulu 13 March 2025

Wetteri Plc

Board of Directors

Further information:

Aarne Simula, CEO, Wetteri Plc

Tel. +358 400 689 613, aarne.simula@wetteri.fi

Panu Kauppinen, CFO, Wetteri Plc

Tel. +358 44 236 3740, panu.kauppinen@wetteri.fi

Webcast on 13 March 2025 at 1 pm EET

Wetteri will hold a webcast for shareholders, analysts and the media on 13 March
2025. During the webcast, Wetteri Plc's CEO, Aarne Simula, will present the
result for January-December 2024, provide information about the progress of the
company's strategy and discuss the market situation in the automotive sector.
The webcast can be followed at https://wetteri.events.inderes.com/q4-2024

Wetteri Plc - an entrepreneur-driven growth company in the automotive industry

Wetteri Plc is an entrepreneur-driven growth company in the automotive industry.
In addition to the retail trade of passenger, commercial and heavy-duty
vehicles, the company provides maintenance and damage repair services ranging
from passenger cars to heavy-duty vehicles. The company has 40 offices in
Finland, and its head office is located in Oulu. The company employs
approximately 800 people, of whom approximately 76% work in maintenance and
damage repair services. Wetteri is a promoter of the digitalisation of the
automotive industry and an important player in the joint journey towards
emission-free driving. Further information: www.sijoittajat.wetteri.

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