Financial Data and Key Metrics Changes - Total revenue for 2024 was $161 million, a 13% increase from $143 million in 2023, meeting the annual guidance [22][8] - Adjusted EBITDA reached a record $34.1 million, representing a 42% year-over-year growth from $24.1 million in 2023 [27][8] - Net income for 2024 was $14.5 million, or $0.25 per diluted share, up 75% from $8.3 million, or $0.15 per diluted share in 2023 [26][22] - Cash generated from operations was $47.6 million, with a year-end cash balance of $78.4 million [9][8] Business Line Data and Key Metrics Changes - KEDRAB sales contributed $50 million in total sales during 2024, with a minimum commitment from Kedrion of $135 million for the remaining three years of the agreement [23][22] - CYTOGAM sales were $23 million, up 31% compared to 2023 [24][22] - Gross profit for 2024 was $70 million, with gross margins improving to 43% from 39% in 2023 [24][22] Market Data and Key Metrics Changes - The company expanded its presence in the MENA region and secured a three-year contract for KAMRAB and VARIZIG in Latin America, expected to generate approximately $25 million in revenue [14][15] - The company launched its first biosimilar product in Israel in 2024, with plans for two additional launches in 2025 [15][12] Company Strategy and Development Direction - The growth strategy focuses on organic growth, business development and M&A, expansion of plasma collection operations, and advancing the inhaled AAT product trial [12][10] - The company aims to continue delivering double-digit profitable growth in 2025, with forecasted revenues of $178 million to $182 million [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's business prospects, citing strong financial results and a favorable outlook for 2025 [10][9] - The company is well-positioned to execute on its growth strategy with ample liquidity and a solid cash position [9][10] Other Important Information - A special cash dividend of $0.20 per share was declared, reflecting the company's strong financial performance and commitment to shareholder value [9][10] - The company opened a second plasma collection center in Houston and is set to open a third center in San Antonio, expected to contribute $8 million to $10 million in annual revenues each [18][17] Q&A Session Summary Question: Inquiry about the futility analysis for the inhaled AAT program - Management confirmed that the futility analysis will be blinded and conducted by an external group, focusing on conditional efficacy data [33][34] Question: Additional growth drivers for KEDRAB and CYTOGAM - Management indicated that KEDRAB's growth is driven by international expansion, while CYTOGAM will see advancements in clinical work and presentations at medical conferences [46][52] Question: Reason for declaring a special dividend - The decision was based on strong financial results and a solid cash position, allowing the company to pay dividends while pursuing business development activities [53][54] Question: Details on the third plasma collection center - The San Antonio center is expected to reach peak revenue in 24 to 30 months, collecting both specialty and normal source plasma [62][63] Question: Impact of internal plasma collection on gross margins - Management noted that using internally collected plasma will improve cost efficiencies, but it will take time to replace purchased plasma with collected plasma [82][83]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $37.3 million, down 20.9% year-over-year, primarily due to a 16.8% decrease in volume mix and a 3.9% decline in pricing [23] - Adjusted EBITDA was a loss of $7.3 million in Q4, attributed to lower sales and adjusted gross profit, partially offset by adjusted SG&A savings [31] - Cash balance as of December 31, 2024, was $26.1 million, up from $24.4 million at the end of Q3 [32] Business Line Data and Key Metrics Changes - Proprietary brands represented approximately 52% of total net sales in Q4, a decrease compared to the prior year [24] - Consumable products accounted for approximately three-quarters of total sales, consistent with 2023 [26] - Adjusted gross profit in Q4 was $1.8 million or 4.9% of net sales, down from $8.4 million or 17.9% in the prior year [26] Market Data and Key Metrics Changes - The cannabis industry faced persistent oversupply challenges, leading to lower sales across the supply chain [8] - E-commerce sales increased over 25% in 2024, indicating a strong channel for home-growing solutions [16] - Sales to non-cannabis and non-U.S. Canadian customers increased by nearly 200 basis points in 2024 [17] Company Strategy and Development Direction - The strategic priority is to drive sales of higher-margin proprietary brands, with a focus on improving the proprietary brand sales mix [11] - Plans for 2025 include targeted marketing investments, enhanced salesforce capabilities, and refined incentive structures to improve profitability [19] - The company is exploring strategic alternatives, including potential acquisitions or divestitures to enhance shareholder value [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging second half of 2024, with expectations of continued sales declines early in 2025, moderating as the year progresses [44] - There is optimism about long-term industry prospects, with plans to invest in higher-margin proprietary brands and diversify revenue streams [37] - Management is focused on improving operational efficiencies and reducing costs, with expectations of further SG&A reductions in 2025 [36] Other Important Information - The company completed significant reductions to its manufacturing and distribution center footprint as part of its restructuring plan [27] - The integration of Canadian entities into the main ERP system is expected to improve operating efficiencies and drive synergies [28] Q&A Session Summary Question: Can you talk about the dynamics of the broader environment in your categories as you look forward to 2025? - Management noted that early 2024 saw optimism in the cannabis category, but expectations were reset due to political changes and market conditions [42] Question: What can we look forward to in terms of incremental benefits from cost-cutting initiatives in 2025? - Management indicated opportunities for additional savings through optimizing the distribution center network and further reducing SG&A costs [49] Question: How might tariffs and regulatory changes impact the company? - Management acknowledged the fluid situation regarding tariffs and indicated plans to pass along costs to customers while monitoring the impact on sales [56] Question: Can you elaborate on potential M&A activities? - Management expressed interest in monitoring opportunities for acquisitions that could enhance shareholder value and diversify the company's portfolio [70]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $97.9 million, a decline of 23.8% year-over-year on a constant currency basis, reflecting lower sales volume across markets [15][16] - Gross margin improved to 19.4%, up 130 basis points year-over-year, driven by restructuring actions and optimized production [13][17] - Full year 2024 sales were $443.2 million, down from $565.2 million in 2023, with a constant currency decline of 21.5% [20] Business Line Data and Key Metrics Changes - In the US, sales decreased by 23.1% to $46.4 million, attributed to softer market conditions [16] - Canada sales fell by 18.5% on a constant currency basis, reflecting similar dynamics as the US [16] - Australia experienced a 37.5% decline in sales on a constant currency basis, mainly due to market transitions [16] - Israel saw a significant improvement with sales up 53.6% on a constant currency basis, benefiting from improved market conditions [16] Market Data and Key Metrics Changes - The EMEA region reported an 18.2% decline on a constant currency basis, impacted by slow market conditions in the UK [16] - Overall, the company faced persistent global market headwinds affecting revenue across all major markets [15][16] Company Strategy and Development Direction - The company is focused on strategic transformation initiatives, optimizing operational frameworks, and enhancing competitive positions through R&D and marketing investments [8][9] - Plans to acquire the remaining equity interest in Lioli Ceramica to increase ownership to 100% as part of growth strategy in the porcelain market [12] - The company expects to realize incremental cost savings of approximately $10 million in 2025 from restructuring initiatives [27] Management Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in the global market but expressed confidence in the strategic initiatives leading to improved agility and efficiency [14][29] - Anticipated gradual improvement in revenues as the year progresses, with expectations for Q1 to reflect similar dynamics as Q4 [33][36] - The company remains focused on maintaining disciplined working capital management to maximize cash flow [28] Other Important Information - The company recorded a provision of $50 million for silicosis claims, with ongoing legal challenges in the US, Australia, and Israel [25][26] - Positive free cash flow of $31.9 million for the full year, maintaining a healthy financial position with a net cash position of $101.8 million [24] Q&A Session Summary Question: Update on end markets and revenue perspective for Q1 - Management sees Q1 reflecting the same market dynamics as Q4, with expectations for gradual improvement in Q2 and Q3 [33][34] Question: Clarification on revenue decline levels - Q1 is expected to show similar decline levels as Q4, with gradual improvement anticipated as the year progresses [36] Question: Insights on pricing pressures - Pricing pressure is evident, particularly in Australia, but is not the most significant factor affecting revenue declines [38] Question: Expected dollar amount of savings from initiatives - Total savings are expected to exceed $45 million compared to 2022, with incremental savings of around $10 million in 2025 [40]

Financial Data and Key Metrics Changes - Orders for Q3 FY2025 decreased by 2.7% compared to Q3 FY2024, primarily due to reduced orders in live events, high school park and recreation, and transportation business units [39] - Net sales for Q3 FY2025 decreased by 12.2% compared to Q3 FY2024, driven by lower volumes in live events, while commercial, international, and high school park and recreation units saw increased fulfillment [43][44] - Gross profit as a percentage of net sales was 24.6%, similar to 24.5% in Q3 FY2024, indicating effective cost management despite lower sales volume [44] Business Line Data and Key Metrics Changes - In live events, demand was smaller due to potential upgrades being postponed, but a significant project for a new NFL stadium was secured, expected to convert to revenue in FY2026 and FY2027 [21][22] - The commercial business saw strong out-of-home activity, with notable orders from independent billboards and upgrades for large displays [25][26] - The high school segment is experiencing a shift towards video displays, with fewer than 10% of high schools having converted to video systems, indicating significant growth potential [88] Market Data and Key Metrics Changes - International markets showed improved quoting activity, particularly in Europe, the Middle East, and Australia, with a positive trend in converting quotes to orders [95][97] - The transportation segment is experiencing variability in order placements, influenced by recent U.S. government actions, including tariff policies [41][52] Company Strategy and Development Direction - The company aims to achieve operating margins of 10% to 12% and return on invested capital of 17% to 20% by FY2028 through strategic initiatives and cost management [19][58] - A focus on digital transformation is underway, with investments in IT and data technology platforms to enhance operational efficiencies and support growth ambitions [71] - The company is committed to diversifying its revenue mix and improving the quality of revenue through strategic capital allocation and ongoing portfolio reviews [61][62] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term growth potential in end markets, despite current delays in order placements and macroeconomic uncertainties [52] - The company is focused on maintaining a strong balance sheet and managing working capital effectively to support expected growth [49] Other Important Information - A leadership transition is occurring, with Reece Kurtenbach stepping down as CEO after over 34 years, and Brad Wehman appointed as interim CEO [8][11] - The company is actively engaging in share repurchase programs to offset share dilution from convertible notes [51] Q&A Session Summary Question: Can you provide more color on the delays in bookings, particularly in the transportation segment? - Management noted that delays are primarily due to large project dynamics and timing, but there is still strong quoting activity and optimism for future growth [80][81] Question: What is the current state of the high school market regarding the shift to digital displays? - The high school market is seeing increased interest in video displays, with many schools aspiring to upgrade from traditional scoreboards [88] Question: How is the company approaching capital allocation? - The company is evaluating capital allocation on a quarterly basis, focusing on investments that provide the best value, including stock buybacks and potential acquisitions [91] Question: How is the international market trending? - International quoting activity is improving, with a better conversion rate expected moving forward, particularly in Europe and Australia [95][97]

Financial Data and Key Metrics Changes - Full-year revenue for 2024 was $729 million, representing a 4% decrease from 2023 due to the conclusion of significant programs in the US telecom segment [24] - Adjusted EBITDA for the full year 2024 decreased to $184 million, down from $189.5 million in the prior year [28] - Net income for Q4 2024 was $3.6 million, or $0.14 per share, compared to a net loss of $5.8 million or $0.46 per share in the prior year [26] - Full-year net loss for 2024 was $26.4 million or $2.10 per share, compared to a net loss of $14.5 million or $1.25 per share in 2023, primarily due to a goodwill impairment charge of $35.3 million [27] Business Line Data and Key Metrics Changes - International segment revenue for Q4 2024 was $94.8 million, essentially flat compared to the same period in the previous year, while full-year revenue increased nearly 2% to $377.5 million [29] - Domestic segment revenue for Q4 2024 was $85.8 million, down 18% year over year, and down 10% for the full year [30] - Adjusted EBITDA for the international segment increased 4.8% for the quarter and 9.7% for the full year, while domestic segment EBITDA decreased 29% for the quarter and 20% for the full year [28][30] Market Data and Key Metrics Changes - The international segment continued to grow, supported by strong demand for high-speed broadband and business solutions, with business mobility revenue increasing by 21% [12] - The US market is transitioning away from legacy technologies, with a focus on enterprise and carrier-driven fiber-based revenue streams [10] Company Strategy and Development Direction - The company is focused on long-term value creation, operational efficiency, and financial discipline, marking the end of a three-year investment cycle [7] - The strategy includes expanding fiber networks, exiting lower-margin services, and optimizing operations to enhance profitability [11][18] - The company aims to leverage government funding to accelerate fiber expansion, having secured over $370 million in grants [14][15] Management's Comments on Operating Environment and Future Outlook - Management expects short-term revenue decline due to the transition but believes it positions the company for long-term stability and higher-margin growth [12] - The focus for 2025 includes stabilizing the US telecom segment and enhancing cash flow generation while continuing to expand margins in the international segment [35] - Management remains confident in the disciplined execution of their strategy, which is expected to support long-term shareholder value creation [20][39] Other Important Information - The company ended 2024 with a net debt ratio of 2.54 times on total debt outstanding of $557.4 million [31] - Capital expenditures for 2024 totaled $110.4 million, down from $163.3 million in the previous year, reflecting a planned reduction in capital intensity [33] Q&A Session Summary Question: Capital expenditure budget for 2025 - Management indicated that the guidance aligns with expectations, with a continued reduction in CapEx anticipated [46] Question: Traction in enterprise and carrier services - Management reported a 6.5% growth in the business base internationally and a 2.7% quarter-over-quarter subscriber growth in business customers [50] Question: Impact of competition on prepaid subscribers - The decline in prepaid subscribers was primarily due to competition, particularly from a new 5G entrant in Guyana [53] Question: Specific services in carrier managed services - The company offers a range of services including lit services, dark services, and backhaul services, and has the ability to lease spectrum assets [58] Question: Visibility of the business - Management expressed confidence in the visibility of the carrier and managed solutions business, driven by increasing demand for bandwidth [97] Question: Plans for stabilizing the US domestic business - The expectation is to stabilize the US business in 2025, setting the stage for growth in 2026 and beyond [104] Question: Timeline for shutting down legacy copper - The company targets significant progress in shutting down copper infrastructure by 2030, with ongoing evaluations of market conditions [108]

Financial Data and Key Metrics Changes - In 2024, the company generated a 10% production per share growth and improved cash cost structure by 5% on a BOE basis [9][10] - The 2P net asset value per share increased by 13%, and net debt was reduced by 5% in Canadian dollar terms and 13% in U.S. dollar terms [10][14] - Free cash flow generated in 2024 was $656 million, with over 70% of this amount generated in the second half of the year [12][15] Business Line Data and Key Metrics Changes - The Eagle Ford region saw the completion of 64 wells, with an 8% improvement in operated drilling and completions costs per completed lateral foot compared to 2023 [17][19] - In the Pembina Duvernay, seven strong wells were brought on stream, and the company plans to expand its program in 2025 [18][19] - The heavy oil business continued to perform well, with 31 Clearwater wells and 40 wells across the broader Manville group brought on stream [19] Market Data and Key Metrics Changes - The company expects to generate approximately $400 million of free cash flow in 2025 at a WTI price of $70 [15] - The impact of tariffs on Canadian energy imports to the U.S. is anticipated to disproportionately affect Midwest refiners [25][28] Company Strategy and Development Direction - The company remains focused on disciplined capital allocation, prioritizing safe operations, free cash flow generation, and shareholder returns [21][22] - Plans for 2025 include a consistent two-rig, one-frac crew program in the Eagle Ford and further development in the Pembina Duvernay [21][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by fluctuating oil prices and indicated readiness to rationalize low-returning projects if prices decline significantly [32][34] - The company is optimistic about the U.S. economy's resilience and is prepared to react prudently to market cycles [84] Other Important Information - The company repurchased 48 million common shares in 2024, representing 6% of shares outstanding, and declared four quarterly dividends of 2.25 cents per share [12][13] - The asset exchange in the Peavine Metis settlement area was a cashless transaction that strengthened the company's acreage position [55][58] Q&A Session Summary Question: Have the tariffs taken effect and what are the mechanics? - The tariffs have been implemented and are effective as of the morning of the call, impacting import duties on products flowing into the U.S. [25][26] Question: What changes in capital allocation are expected if oil prices drop to $60? - The company will likely pull back on capital activity, which should help address the issue of lower prices, while input costs may also fall [32][34] Question: What drove the improved F&D costs reported? - Improvements in capital expenditures and cash costs, along with better performance in high-value oil streams, contributed to lower F&D costs [41][42] Question: Can you provide details on the Duvernay drilling program? - The drilling rig has been mobilized, and the company is drilling three three-well pads, with results expected in the Q2 release timeframe [46][50] Question: What is the context of the U.S. dollar debt repayment? - Most of the company's debt is U.S. dollar denominated, and the company aims to report debt repayment in U.S. dollar terms for clarity [62][64] Question: Are there opportunities to accelerate the $1.5 billion debt target? - The company continues to explore opportunities within its portfolio to sell assets that do not disproportionately benefit overall cash flow [74][76] Question: What is the composition of the shareholder return framework? - The company maintains a fixed base dividend and allocates half of its free cash flow to debt repayment and the other half to shareholder returns through buybacks [78][79] Question: What are the thoughts on recent share price performance? - The macro environment is challenging for WTI prices, and the company will monitor the situation and react prudently [82][84]

Jost Reinhard Good afternoon and good morning, everybody, and welcome to our conference call to discuss the fourth quarter and full year results for 2024. To begin, we will share his perspective on our business development, the progress we've made in our transformation and the path ahead of us. Wolfgang will then provide an overview of our financial performance in 2024 along with the outlook for 2025. We will then hear from our divisional heads, who will delve into last year's performance of their businesse ...

Financial Data and Key Metrics Changes - In Q4 2024, the company generated GAAP net investment income of $0.35 per share and core net investment income of $0.37 per share, excluding estimated excise taxes [8] - Net asset value per share decreased by $0.09 during the quarter due to net unrealized depreciation on the investment portfolio and reduction of spillover income, offset by net realized gains primarily related to one equity investment [9] - The investment portfolio at fair value increased to $953.5 million across 105 portfolio companies, up from $908.7 million across 99 companies as of September 30, 2024 [10] Business Line Data and Key Metrics Changes - The company invested $76.5 million in nine new and portfolio companies during Q4 2024 and had $33 million in other investment activity, all at par [10] - Three full repayments totaling $46.9 million and $15.6 million of other repayments were received, both at par [11] - 98% of loans were secured and 95% were priced at floating rates, with an average loan per company of $9.5 million [11][12] Market Data and Key Metrics Changes - The company’s portfolio includes loans to seven portfolio companies on nonaccrual, comprising 5.4% of the fair value of the total loan portfolio [13] - 24% of the portfolio is rated a one or ahead of plan, while 21% is marked category three or below plan, indicating some companies are not meeting expectations [13] Company Strategy and Development Direction - The company aims to maintain a portfolio of $1 billion, having funded an additional $47 million in the first quarter of 2025 [14] - The equity co-invest business includes investments across 92 companies with a cost basis of $59 million, with expectations of meaningful uplift over time [16] - The company declared a dividend of $0.40 per share for Q1 2025, expected to continue into the second quarter and throughout the year based on spillover earnings [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding leverage levels and potential credit risks due to uncertainties created by government actions [24][25] - The company anticipates that the first quarter EPS will likely not fully cover the dividend, but spillover earnings from previous years will help [29][30] - Management noted a decrease in investment yields due to tightening spreads and some additional non-accruals, but overall asset quality remains on plan [34] Other Important Information - The company had $45 million of spillover at the end of Q4 2024, which will support dividends in 2025 [52] - The company is in the process of obtaining a third SBA lending license after prepaying a debenture payment of approximately $16 million [38] Q&A Session Summary Question: Thoughts on potential tariff impacts and credit quality changes - Management is operating at lower leverage levels than usual and is cautious about the uncertainty created by government actions [24][25] Question: Will first quarter EPS cover the dividend? - EPS is expected to be close but probably not fully cover the dividend, with substantial earnings from the past helping to cover it [29][30] Question: What drove the decrease in investment yields? - Decrease in spreads from sixes to fives and some impact from additional non-accruals were noted [34] Question: Thoughts on increasing leverage - Management is targeting a one-to-one leverage ratio but remains cautious about increasing leverage in the current environment [36] Question: Will the company re-up for more SBA lending capacity? - Yes, the company is moving forward with obtaining a third license for SBA lending [38] Question: Analysis of portfolio exposure to tariffs - Management estimates that up to 10% of the portfolio could be impacted by tariffs, but it is not expected to be material at this time [57][58] Question: Any additional markup from realized gains this quarter? - There was a few million dollars in additional markup from one equity position that continued to grow [60]

Financial Data and Key Metrics Changes - The company achieved revenues slightly exceeding $4.5 billion for the full year of 2024, with a gross profit of approximately $1.3 billion [9] - Net income for 2024 was impacted by a one-time charge of approximately $1.1 billion related to a tax dispute [9] Business Line Data and Key Metrics Changes - Lithium sales volumes reached nearly 205,000 metric tons in 2024, including almost 4,000 metric tons from Mt. Holland [10] - In Q4 2024, record sales volumes surpassed 58,000 metric tons of lithium carbonate equivalent [11] - Iodine achieved record volumes and strong price growth, particularly in X-ray contrast media applications [12] - Fertilizers market has stabilized, recovering from past challenges [13] Market Data and Key Metrics Changes - The lithium market grew around 25% in 2024, driven by electric vehicle demand, particularly in China [10] - Demand for lithium is expected to grow approximately 17% in 2025, with stable prices anticipated [11] - The iodine market is expected to see continued demand growth, albeit at a slower pace [12] Company Strategy and Development Direction - The company plans to invest over $1.6 billion in 2024, with approximately $750 million allocated for lithium capacity expansion in 2025 [14] - Investments will also include close to $350 million in caliche operations to increase production capacity [14] - The company remains committed to expanding its core business and leveraging its strong financial position for future opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the lithium market due to strong demand growth, despite price fluctuations [32][35] - The company is closely monitoring capital requirements and maintaining a strong balance sheet to support future investments [24] - Management noted that the iodine business is a key component of the portfolio, with plans for capacity expansion [28] Other Important Information - The company expects to produce 230,000 metric tons of lithium in 2025, with ongoing capacity expansion efforts [42] - Maintenance CapEx across all divisions is estimated to be around $250 million to $280 million per year [60] Q&A Session Summary Question: Potash production guidance and future plans - Management confirmed that potash production is down due to a focus on lithium production, with a possibility of being a net buyer in the future [18] Question: Capital requirements and raising capital - Management indicated that while there may be a gap in funding capital requirements, they are not planning to raise capital at this moment but are monitoring the situation [24] Question: Iodine business potential and spin-off possibilities - Management stated that the iodine business is significant and they are not planning to spin it off, focusing instead on expanding capacity [28] Question: Lithium market outlook and production capabilities - Management highlighted strong demand growth for lithium, with expectations to reach 230,000 metric tons in 2025 [42] Question: Codelco joint venture updates - Management reported no significant obstacles in meeting conditions for the joint venture with Codelco, expecting fulfillment in the second half of the year [47] Question: CapEx breakdown and maintenance CapEx - Management provided a breakdown of 2025 CapEx, estimating total CapEx between $3.1 billion to $3.8 billion over the next three years [51] Question: High costs in Q4 and future expectations - Management explained that higher costs in Q4 were due to one-time expenditures and that similar costs are expected for 2025 [91]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 6.5% to $14.6 billion, with net profit rising by 14.9% to $1.12 billion, and free cash flow reaching $1.6 billion, a 23% increase from 2023 [3][6][18] - Gross profit increased by $476 million to $5.9 billion, with a gross margin improvement of 85 basis points to 40.3% [7] - Earnings per share rose by 15.1% to $0.6143, and the total dividend for 2024 was increased by 17.1% to HK$2.26 per share [8] Business Line Data and Key Metrics Changes - The Power Equipment division, which accounts for nearly 94% of total revenue, grew by 7.3% to $13.7 billion, with operating profits increasing by 12.1% and margins improving to 9% [9] - The Floorcare & Cleaning division saw a revenue decline of 4.5% in local currency, but operating profits increased by 4.73% with margins improving to 3.2% [9][10] Market Data and Key Metrics Changes - North America, representing about 76% of revenue, grew by 5.5% in local currencies, while Europe, accounting for approximately 16% of the business, grew by over 10% [10][11] - The rest of the world, led by Australia, delivered impressive local currency growth of 12.5% [11] Company Strategy and Development Direction - The company emphasizes innovation and investment in new products, category expansion, and technology as key strategies to maintain market leadership and outperform competitors [12] - The focus on a unified team approach, leveraging the collective experience and knowledge across the organization, is seen as a competitive advantage [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue delivering strong financial results, highlighting a commitment to innovation and addressing market needs [21][32] - The company aims to achieve a net cash position by 2025 and continues to focus on reducing net finance costs [19][36] Other Important Information - The company has reduced total net debt by over 95% to $45 million, with a significant reduction in floating rate debt [19][20] - The effective tax rate increased to 7.8%, but management believes this rate is sustainable mid-term [13] Q&A Session Summary Question: What are the growth opportunities for RYOBI and Milwaukee? - Management highlighted the strong growth in the cordless segment, with RYOBI achieving a 15% compounded annual growth since 2016 and Milwaukee capturing significant market share through innovative solutions [60][91] Question: How does the company plan to maintain its competitive edge? - The company plans to continue investing in technology and innovation, leveraging machine learning and AI to enhance product offerings and operational efficiency [46][93]