Ladies and gentlemen, a warm welcome to Purmo Group's Q3 2022 results webcast and conference call. My name is Katariina Kataja. I'm head of investor relations here at Purmo Group. Today, joining with us, we have CEO John Peter Leesi, as well as CFO Erik Hedin. Please note that we have a separate Q&A session at the end of this presentation, where you have the possibility to ask questions through the teleconference lines as well as through the web chat. Please also remember that this webcast will be recorded and will be found on the investor relations site later today. With this short introduction, we are ready to start Q3 2022 presentation. I will now hand over to John-Peter. John-Peter, please go ahead. The stage is yours. Thank you very much, Katariina, and good morning, everybody. Let's look at our earnings update for the third quarter of the year 2022. We have four basic messages that we would like to convey to you all. The first point, looking at the Q3 results, is that we're experiencing a weakening market environment, and this is particularly true for our radiators business. Having said that, we also have a business that has been continuing to perform in a good way, and that is our ICS business, which has been supported by our activities around solution sales, complete solutions for climate in residential settings. The third message is that you will see is that we see margin pressure, and this is caused by two things, lower volumes, but also higher raw material costs. We have, at the first day of the fourth quarter, which is after the review period, but still extremely important to us, we have launched a strategy acceleration program, which we call Accelerate PG, and that is basically to secure that we are really fit and strong, and we can execute our strategy in the best possible way, and we've also adapted and changed our organizational and operating model for this purpose. The purpose of it is that we want to be faster and better and stronger in executing our strategy, but also becoming even more customer-centric. When we look at the performance of the third quarter, but even more importantly, looking, having the visibility of the fourth quarter of this year, we have then updated our guidance for the full year of 2022. We have updated it, and we have actually then issued a new guidance, which is that we expect our financial results in 2022 to be lower than we have communicated earlier. Due to this, we have taken additional measures on and above our acceleration program to improve profitability, and these are the points that we will be covering throughout the presentation today. Let's look at the headline numbers here. Purmo Group as a whole, stable sales development, 1% compared to the third quarter of last year, but looking at the adjusted EBITDA, we then see a drop of 23%, bringing us to EUR 19.6 million in adjusted EBITDA for the third quarter of 2022. Let's then break this down into our two operating divisions. Our radiator division, here you could see a drop of 17% in top line in net sales. Important to note, though, that we have price inflation in these numbers, and the actual volume drop in the third quarter amounts to a 33% volume drop compared to the same period last year. This then translates into an EBITDA development that actually is 39% for the third quarter. Moving on to our ICS business, our ICS division, you can see a stronger development here with net sales growing 24% thanks mainly to our solution sales business, which is so strategically important for us, and this then translates to an EBITDA improvement of 4% in the same period. Looking at the longer period, being 4 years in this slide, you can see that our sales have actually grown 14% annually, and adjusted EBITDA has expanded with 21% over the same period. The ICS division is performing well, which makes us feel strong and happy. One of the things we usually cover in these calls is, of course, one of the raw materials that is hugely important for our business, especially the radiator business, and that is cold-rolled steel. This slide shows then the development of cold-rolled steel, and you know that over the last 2 years, we've seen a massive increase in the cost. What we wanna show here is a couple of things. The first one is that the market price for steel has been having a downward trajectory for a while here, and in the third quarter of 2022, we saw this price coming down additionally. The thing is that, as you remember, we buy steel at the previous quarter's average, which means that actually, on the third quarter of 2022, we're actually facing a 10% cost increase for steel. So we're now peaking in terms of steel cost, and we believe or we even know that our cost is gonna be lower in the quarters to come. When it comes to our strategy execution, we want to cover the points that we normally cover here, and these are important growth drivers for us. Solution selling is one of them. Developing and launching new smart products is another one, and growth markets is the third one. If we look at our solution selling initiatives, Emmeti business, our brand Emmeti that we operate with in Italy, has been going really strong. Again, this is the home of our systems and our solution sales. Our new family member, Thermotech in the Nordics, have also performed well, even if they're facing a tougher market in Sweden. We also now, a few months after we've merged, we also see how we can capture synergies with the Thermotech combination, which is really rewarding for us. On the smart product side, the heat pump business, where we have heat pumps in our offering, is going very strong, like all heat pump related markets. We've also developed products like fan assisted radiators, which is important to increase the convection rates when you have low temperature water supplied by, as an example, heat pumps. We also see a growing demand for electric radiators, and we have strengthened our efforts in that space as well. Looking at our growth markets, despite challenging times in China with numerous COVID lockdowns, we have been able to perform with double-digit growth in China. When it comes to Russia, our divestiture actions, our exit of that market, is progressing. On the operational excellence side, with these volume drops that we've talked about we've seen this growing drop in volumes in the radiator markets, 10% in Q1, 20% in Q2, 33% in Q3, and of course, our organization has actually performed strongly and well in addressing capacity reductions in the face of adversity in our markets. We've also continued to increase prices, the necessary price increases that we have to do when we've seen raw materials go up. That is a strong performance by the global Purmo organization. On the people and cultural side, we wanted to highlight the fact that solution sales is so core and so key to us, so we have developed training programs for our people in both sales, product management and even manufacturing to go through the solution selling capability and technical knowledge improvement. On sustainability, we have reduced the carbon intensity with 10%. We have reduced greenhouse gas emissions in Scope 1 and Scope 2 with 11%. We have committed now to Science-Based Targets, which means that we're committed to net zero by 2050. Sustainability is also an area that is close to our hearts, and we're performing well there. We would like to share with you some of the examples from our world. We have previously showed about an installation of a typical Purmo solution, and, in our previous, earnings call after the second quarter, we showed a bigger project, a project that involved insulation, it involved new windows, it involved doors, it involved new technology and products for heating and cooling. We now just wanted to share a lighter example of how we've worked in one project, in this case also in Italy, 140-square-meter residential dwelling. This is a situation where we have not worked with major insulation changes. We have also worked with existing heating solutions which has been underfloor heating. What we have provided here is basically replacing an existing gas boiler with a heat pump system. We have applied our intelligent smart energy management system here, and which has then basically given rise to remote monitoring, but it's all based on our proprietary technology and the partners that we work with here. We have also then worked with what is key here, which is the installation of renewable energy sources being photovoltaic solar panels. Let's look at how this solution actually how it looks. The starting point is to the very left here, and you can see that there is a fairly low energy labeling at the outset. This critical number, which is 270 kWh per square meter per year, it is a bad number, right? We then installed what you see in the middle here. We've installed solar panel, we've installed a Mirai heat pump, which is a monoblock heat pump, easy to install, and on top of this, we've actually applied our Feelix energy management system. Thanks to this, not taking into account new installation or anything which has not been applied here, existing emitter systems with existing under floor heating, no new materials here, and you can see what happens here. With an investment of around EUR 28,000, you can see that we have been able to improve the energy label and the energy efficiency of this home, of this home with an improvement from 270 kilowatt-hours per square meter per year to 57 kilowatt-hours per square meter per year. This is again repeating it forever and ever. This is what Purmo is all about going forward. With this, I will now hand over to our CFO, Mr. Erik Hedin, please. Thanks a lot. So if you look at the Q3 result in our three key KPIs, net sales reached EUR 216.3 million, which is 1% lower than last year. Adjusted EBIT down EUR 19.6 million, which is down 23% compared to previous year, and resulting in an adjusted EBITA margin of 9.1 percentage points. If we look at the group results, if we start with the net sales development, we come from a period of seven consecutive quarters of growth. In the third quarter of 2022, we had a stable development or 1% top line decline. This breaks down in 5% organic decline and offset by 3% acquisition from the Thermotech in the Nordics, and then 1% favorable FX. Moving to the profitability, we have a 23% decline in profitability driven by the lower underlying business volume and the margin dropped to 9.1 percentage points. The margin pressure comes from the lower volumes in the radiator business in particular, but also higher raw material costs in the third quarter that has not yet been passed on to our customer base, and that is affecting both divisions. During the quarter, Radiator Division in particular took strong actions to right-size the cost structure, but that has a certain delay and both divisions implemented new sales prices, but again, that has a certain delay and we did not see that to the full effect in the third quarter. If we look at the regional split on top line, it's quite dramatic differences in development here. Our biggest region in Western Europe overall is holding up well in terms of net sales growth. It's stable at 1%. Some differences between countries. Germany held up reasonably well and had growth, but then other parts of Western Europe, the Benelux and France was weaker. Central and Eastern Europe stands out as a clear weakest area in the current economy. It's affected by the geopolitical situation, but also the construction cycle seems to have hit stronger in Central and Eastern Europe. Here for us, big markets are Poland, Romania, but then we also still have an exposure to Russia and other states in the former Soviet Union. Northern Europe is growing 17%. This includes the Thermotech acquisition, which contributes to 14 percentage points of that 17. Without that, it's more in line with Western Europe. Southern Europe has strong growth driven by the Italian market where we have a big exposure, and it's a strong market that has performed well and continues to do so. Lastly, in the rest of the world where China and Brazil has demonstrated growth in the third quarter in China, even if there are still issues with the COVID lockdowns, we were able to generate growth, which is a good development. Moving to the Radiator division, we see also here that we had seven quarters of growth, but in the third quarter, we had a notable decline of 17%. Organically, that's 19% decline, and the volume where we can measure radiator pieces quite easily or very easily was down 33% year-over-year. It's a very significant decline, and as John Peter Leesi indicated, it's also worsening compared to the first and the second quarter, which was down 10% and 20% approximately in volume. The profitability outlook, as a consequence, fell in line with the volume decline, slightly more 39%, still yielded EUR 9.2 million in profitability and 8.4 percentage point. This is thanks to the result of quickly adjusting the cost structure. We have passed on significant cost inflation to our customers compared to one year ago, but there were slight delays still in Q3. Moving to ICS division, here we see the net sales growth continuing up 24% year-over-year and in line with the previous trends, a very strong development. 17% of this is organic and 1% currency and 7 percentage points from the Thermotech acquisition. Demand continues robust in most categories. Then we have the additional strength in our Southern European markets and also in Brazil, which is supporting the overall growth. In terms of profitability, it was more of a stable development, up 4 percentage points, and this is the comparison period for ICS was unusually strong in Q3 2021 where we had 13.8%. We achieved 11.7% in this quarter, which is a good performance. There was some slight delay on sales price realization also in the ICS division. We could have realized a little bit better, but that was expected that we would not have that in the third quarter. Thermotech contributed with 0.7 million in the quarter, so that was a good development from our recent acquisition contributing to growth. Moving to working capital, we have an increase in working capital in the quarter of 35% to EUR 129.6 million. So this is a high level of net working capital. Like many industries, the key issues for us is for us to right-size the inventories. That in turn comes from the deceleration in demand. We have ended the third quarter with more inventories than we would like, and we continue to take efforts to right-size inventory levels going forward. Net working capital has an annual cycle where Q4 is the normal low point for us. We will also see a deceleration of net working capital tied up from seasonal effects moving into the fourth quarter. Looking at the adjusted operating cash flow, we come from a period where we had very strong cash flow, close to 100% cash conversion ratio. In the past year or so, we've had a weakening on the cash flow, which is mainly linked to first the correction and then the slightly elevated level of net working capital, and we continue to work to address this. The net debt development, we ended at EUR 288 million in the third quarter, which is a leverage ratio of 2.9, which remains below our financial target of 3.0. As you will see from this chart, when we did this IPO and the stock listing in Q4, we had a new capital structure. The comparison period in 2021 is not like for like, 'cause the capital structure was reset when we did the stock listing. To the right, we see a breakdown of our net debt. We have EUR 353 million of gross debt, where the long-term financial loans is the majority item. Then we have the financial leases, roughly EUR 40 million, then short-term funding of combined EUR 26 million, and then the liabilities held for sale now in Russia for EUR 8 million. That's the breakdown of our net debt. Moving to the comparability adjustments, which we exclude from adjusted EBITDA. In the quarter, it grossed EUR 1.0 million, and EUR 1.3 million from that was related to the purchase price allocations from the Thermotech acquisitions, which burdened the inventory valuations by EUR 1.3 million in the third quarter. In the restructuring line, we have actually two items affecting this. We have a one-time gain from a building or a subsidiary sale in China, but it was a building and land linked to that unused asset that resulted in a profit of EUR 1.2 million, and this is offset by EUR 0.9 million of restructuring costs. Moving to the net financials, we have around 2 percentage points of net sales in net financials in the third quarter. This is up from 1 percentage point of net sales in the previous year. The key driver is the interest net expense, which is increasing to EUR 2.8 million. This is again linked to the new capital structure. We have more external debt in 2022 than we had in 2021. In terms of depreciation and amortization, a slight increase to EUR 8.1 million compared to EUR 7.9 million in the previous year, and this is linked to also the acquisition of Thermotech, and this approximates to 3.7% of net sales. Tax, we had total income tax expense of EUR 10.2 million in the nine months of 2022. This equates to 23.3% on an effective tax rate, adjusted for nondeductible items. We have a specification here below. The profit before tax, considering the nondeductible items, was EUR 43.7 million, slightly higher than last year, EUR 41.3 million. The other key figures I will not go through. I'm just going to come back to, as John Peter indicated, the Accelerate PG program, which is a very important initiative from Purmo Group to make sure that we execute and implement our strategic ambitions and targets. This was launched beginning of this month, October. We have increased the ambition as a response to the weakening market outlook, and we now target EUR 40 million run rate improvement by end of 2024. In terms of the P&L, we will then see that full effect in 2025. During 2023 and 2024, we will have a partial effect from the run rate effect, as the run rate is the annualized effect that will kind of build up during the year. If we look at the improvement levers, we did not go into these details when we launched the program, but we have footprint optimization of manufacturing facilities, but also warehouses and distribution centers, which equates to about EUR 11 million from the EUR 40 million overall target. We have overhead optimization. This includes headcount, but also other overhead spends of about EUR 5 million. Sourcing improvements, which is savings on purchasing, but also value engineering, where we improve the product technology, to lower cost, which will expect to yield EUR 9 million. We have pricing or commercial excellence, you can call it, where we improve how we position our products, and we look across markets to make sure that the pricing is right for our product range. That should support us with about EUR 9 million by end of 2024. We have growth initiatives. Here the ambition is higher, but in terms of a target, we have EUR 6 million of improvement, and this is from the initiatives relating to smart products, new growth regions, and other growth initiatives. Coming to the updated financial guidance. We have now guided in particular on adjusted EBITDA. We now anticipate to fall in the range of EUR 88 million-EUR 96 million. Earlier we stated that it would be comparable to previous year, i.e. ±5% from EUR 104 million. The trigger for this was when we got visibility for the fourth quarter, and we had a combination of slightly lower volumes. Actually the trend of, in particular, radiator deterioration continues into the fourth quarter. Also we had slight margin pressure where the sales price increases are not coming in at the pace we anticipated. This is again linked to the slower sales development, where the new sales and the new prices are not yet realizing. This is the new targeted range. If we look at it for the fourth quarter in isolation, this makes between EUR 11 million and EUR 19 million for the fourth quarter alone. If we break that down by division, we expect radiator division to be between EUR 5-10 million in the fourth quarter compared to EUR 15 million last year. It's a significant profit decline in the radiator division. ICS division, we expect to be between EUR 8-12 million compared to EUR 10 million last year. We have some group overhead costs, which will be between EUR 2-3 million. Just to give some further flavor on the guided range. In terms of the radiator pieces, which I think is a key metric just to understand, it's in the ballpark of -40% in the fourth quarter. Even worse than what we saw in the third quarter when it was down 33%. Lastly, just we're always pleased to remind of our ambitions on the financial targets. In terms of growth, we want to grow above the market and we continue to pursue this. The markets are tough at the moment, but we are well positioned, and we are growing above the market. Profitability to be above 15% adjusted EBITDA margin, and here the Accelerate PG program is a key component to help us achieve this. We will maintain a leverage below 3x. The dividend policy remains to be above 40% of net profits. Thank you. All right. Ladies and gentlemen, we are now in the end of this presentation, and we are ready and open for your questions, and we will start taking the questions from the teleconference lines. Please open the lines. Thank you. The next question comes from Anssi Rauti from SEB. Please go ahead. Hi. Good morning, everyone. I have a few questions, and I go one by one. The first one is about your new guidance. Sorry if I missed this one, but just to clarify, was it about pricing only, or were volumes also lower than you had expected in the radiator division? Yeah. We have seen, Anssi. Very good question. We have seen throughout the year a weakening demand for the radiator segment in particular. This is a combination of weaker end markets, but also, in our understanding, a clear supply chain correction from our customer base, which is mainly wholesalers across Europe. The annual decline across the fourth quarter, I think it illustrates the development. It was roughly 10% decline in Q1, 20 in Q2, 30 in Q4, and now 40%. Sorry. 30% in Q3 and 40% in Q4. It continues to deteriorate and that development is difficult to gauge, in particular supply chain effects. We did not anticipate a 40% decline as early as a few months ago. This is then in combination with the delayed sales price implementation. Let us be clear, Anssi, on the sales price thing. For the avoidance of doubt, right? We have announced and agreed the price increases, but in light of the downturn in the markets, we still have orders at old prices. What we see is a delay of the impact of already announced and agreed price increases. It's not that we have price increases in front of us to be negotiated. They are done. It's the impact that is being delayed due to the demand downturn. Okay. Yeah. That's really helpful. Thanks. The second question is also about the radiator division. As we saw this over 30% decline in volumes in Q3, and if we think about the construction market in general, of course the sentiment is quite bad at the moment. Is this purely coming from the temporary weakness in the market, or do you see some kind of structural changes in the demand as well? Our view is the following, that we have an exacerbated situation in the radiator market. Meaning that when you look at last year, we had a very strong, actually post-COVID development, which was even made worse positively by the fact that wholesalers were expecting price increases on radiators due to increased raw material cost. They were actually buying as much as they could, and we saw a clear development of stockpiling in our distribution channels. When that made last year an incredibly strong year, and especially the third quarter. Now, when the tide is turning, you get the opposite perfect storm, which means that you actually see a demand coming down, you have too much inventory in the distribution channels, and then the wholesalers also think that, "Hmm, steel prices are going down. Let's wait with replenishing our stock until the price is lower." So it's like a double whammy, and that is why we call it a sharp market correction in the demand profile of radiators. When it comes to the structural element, our view is not that radiators are structurally kind of disappearing in some way, shape, or form. Radiators is still a very important emitter solution, especially in renovation. No real structural difference. There is always the fact that radiators are expected to grow less than underfloor heating and cooling and other emitter solutions. This situation we're describing to you now does not have any structural implications for the market as a whole. Okay. That's clear as well. Thanks. Maybe the last one from me is about the ICS division. If we split the ICS growth, I guess volumes were flattish excluding Italy, or how were the volumes in this division? If you could give some kind of split there. Thanks. Right. If we look at ICS products and systems, we've actually seen a flattish development. We're expecting a flattish development over the fourth quarter. We have seen slight growth before. Now, we see a flattish development coming into the fourth quarter. Actually even looking into 2023, due to the construction outlook, we actually see a downturn. We think that the market for products and systems, ICS types of products, is actually gonna be lower. The market is gonna be lower in 2023 than 2022. If you look at our solutions part, which you excluded from your question, but we will answer it anyway, is that we've seen a strong growth. We've actually seen a growth that has been very healthy throughout the year. We think that growth rate is gonna taper off a little bit towards 2023, but we still believe that solutions is going to grow. Great. Actually, if I continue on that, how do you think about the growth in Italy if we compare the growth numbers to this year? Because if I remember correctly, the government tax benefits are reducing a bit from, was it 110% to 70% or, correct me if I'm wrong. The tax rebates are now confirmed, and they will remain. We always knew they were gonna go down for... There are different levels for different applications and situations, but the 110% for residential single homes is gonna go to 80%, which is a higher number than we expected. That is really good news. That is confirmed by the government of Italy. If you look at the performance in the third quarter of our solutions business in Italy, our estimation, and these are estimations, is that the market grew with 30%. We actually grew sales with 50%. There is some inflation in this, right? It's not that huge differences I'm describing now, but the numbers say market grew around 30%, we grew around 50%. We think that growth rate next year is gonna taper off a bit, but we're still gonna see growth in the market. Okay, thank you. That's all from me. The next question comes from Svante Krokfors from Nordea. Please go ahead. Yes, good morning. Svante from Nordea. A couple of questions. First one regarding the weakened outlook and your efficiency program acceleration. I mean, how quickly has the market outlook deteriorated during Q4? Could you give a bit of a timeline there? How quickly? I think this year in particular for radiators has been weakening for, I would say, since beginning of Q3, and we've been talking about the challenges for Q3 since the second quarter announcement. That has continued to weaken in our visibility. I think this is mainly for us to estimate the supply chain effect and kind of gauge with external indicators what's happening in the construction market. We have been surprised by the weakness in the market. Now we're approaching year-end, and we see significant risk that our customer base, the wholesalers, just like us, will try to right-size their inventories before year-end. That's why we Part of the reason for this wide range for Q4, because we don't know exactly yet how much we will deliver this year. The order backlog is a matter of weeks. It's a high service business, so we don't have confirmed deliveries for this year still. That creates this uncertainty of the fourth quarter. Thanks. The decline in radiator sales, can you give some estimation of? I mean, you have two main components, destocking and real demand. Do you have some kind of estimation on the balance between those two? I think one way to express real demand is this, how we. If we look at the year as a whole, volumes will be down in the magnitude of 25% as a whole. For next year, we expect a slight decline, like low single-digit. I think that is potentially then the magnitude of the demand drop, because across two years, you can't have a full year of inventory effect. I think the magnitude of the demand decline is potentially 20%, but then supply chain effects, when we see a quarter of thirty and forty, that's clearly not possible to have a construction decline of such magnitude in a quarter. Thank you. Regarding the cost savings program, obviously it's also long term, but how should we look at that short term? I mean, looking at your Q4, the guidance for 2022 implies a Q4 EBITDA of EUR 11 million-EUR 90 million, EUR 15 million midpoint. Should we read it so that kind of a bad scenario is that you have a run rate of EUR 15 million per quarter, EUR 60 million per year, and with EUR 40 million cost savings, you would still achieve a EUR 100 million EBITDA also in a kind of worst case scenario, long term? For 2023, you mean now? No, I mean, you won't get to all the cost savings in 2023, but do you think at all in those terms or is this only long-term initiatives? No, I think, Svante, I mean I understand you're doing these calculations coming to an EBITDA estimate for 2023, and we're obviously today not providing that. What we are saying is that our actions, the strengthening of our program addressing EUR 5 million more, is a response to the weakening when it comes to visibility for Q4. Exactly like Erik said. However, as we said just a minute ago, we believe that 2023 is gonna be a challenging year for the industry and construction at large, so we kind of apply these actions as a response to what we actually see is gonna happen in 2023. Yeah. Yeah, Okay. I think I understand your question now. No, I think the fourth quarter of 2022 is not representative for the current run rate of Purmo Group. It is. Volumes in radiators are severely down, around 40% the last year. That's not the new normal. The year as a whole will be down around 25%, so it means the Q4 is clearly weaker than the run rate for Purmo Group. You should rather look at 2022 as a whole as the run rate, which has been a challenging year, in particular in Q3 and Q4, and then apply the EUR 40 million improvement on top of that. That's correct. Thank you. That's helpful. Regarding your specifications about the improvement program, I think one could classify EUR 60 million as hard cost savings and twenty-four million as soft savings. How should we look at the kind of hard cost savings? I guess hard cost savings are more likely to or higher probability that they will happen. How should we look at the timing from the hard and soft improvements? As we discussed earlier, Svante, I would say the pricing on the commercial excellence is semi-hard in our view. It's our brands, we own our products, and we can set the prices for our products, and we will do it in a very responsible way together with our wholesalers and customer base. I think that one is semi-hard, and that one is actually one which can have an effect relatively quickly. The other which will have a quicker effect is the overhead savings, which we'll of course in the current downturn have to take immediate focus on. Other early ones are within the footprint. There are quick ones, but some of the more significant ones will take up to 1 year from now to realize or even slightly more, and we will continue to progress those opportunities in conjunction with unions and necessary procedures, but we're exploring different opportunities how to execute there. Then growth, it's a smaller bucket for us that is clearly backloaded, but I think that the estimate of the number as such is quite prudent. We're shooting at a lot more than EUR 6 million, but that would be backloaded. Then lastly, sourcing. Here we have value engineering. There are concrete ideas. They will have a slight delay 'cause we need to. We have projects working on, but they will take time to then industrialize. On the sourcing side, similar to pricing on the customer side, they can be realized during 2023. Erik, I think that our definition of our hard kind of improvements here or savings here is a little bit more optimistic than Svante's, right? If you start adding up our footprint is a hard one, even if it's a delayed effect. Yeah, that's hard. We have the sourcing ones and value engineering. We have the you know, the overhead cost and so I think the majority of that EUR 40 million, according to our definition, is pretty hard. Yeah. It's good. Yeah, within sourcing, value engineering, in our view, is totally in our control. It's us improving our products, so that's also a hard element. Okay, thanks. That's also helpful. Perhaps question regarding pricing behavior among competition both in radiators and ICS. Have you noticed anything special there? Well, we noticed one announcement, our number one overall competitor on radiator side, Stelrad, they produce a lot of their products in Turkey, and they'd had a price announcement in the UK where they increased 5%. Our understanding is this is linked to the dollar rate strengthening and the exchange rates and the position of Turkey overall, and the relative cost advantage has deteriorated, is our understanding. On other markets, it's mainly then linked to energy prices and other cost pressures, which is still driving inflation. We have not yet seen a widespread decline in sales prices. We do note, in particular for radiators, that the steel costs are going down, and if they continue to go down, we would expect that the market will eventually come up with and be able to reduce prices for the products, which would be favorable for the category as a whole. Us and our competitors will need to do this in a rather responsible way, because we still have high costs in our structures and we just need to do that in a controlled way, and we don't know what will happen with the cost in the future. Thanks, last one. Can you update us on the Russia divestment? Yeah. We are working actively with that. We don't wanna commit to a timeline. We have various candidates that have shown interest that we are working with actually quite intensively. We remain optimistic about our possibility to exit from Russia. We don't wanna put the timeline there. Okay, thank you. That's all from me. Thank you, Svante. The next question comes from Anssi Raussi from SEB. Please go ahead. Yes, one more from me. It's about your balance sheet. How do you see your net debt at the end of this year? Like, I know you mentioned inventories, but if you could give some kind of, not guidance, but a hint. Thanks. Yeah. As I mentioned, we had EUR 288 million end of Q3, and this, in line with seasonal trends, we expect net debt to come down slightly in Q4. This is the period when the activity slows down approaching the Christmas period, and this should benefit us. On the negative side could be then the risk of continued inventory levels remaining too high, and this is then linked to the sales development we talked about previously. Normally, we have an improved net debt situation end of Q4, and that will be favorable for us this year. Okay, thank you. If there are no questions from the lines, then we will move questions through the chat. There is quite many questions from Olli Koponen from Inderes, and we start from guidance. Your guidance range is still quite wide. What will need to happen for you to reach the upper side of the range, and what are your assumptions on the lower end of the range? Yeah, I can take that. To the upper end of the range, EUR 96 million, we would need that we have good demand until the end of the year, and we have deliveries performing, and then also that the sales price increases, which have been announced, comes through in our P&L. I think those two are the combined effect to reach the higher level. The lower level, on the other hand, is in particular that if demand dries up in December, and then our customers will decide, "No, we're gonna take a really cautious approach to further orders in 2022," that's the main downside risk. We don't see that risk yet, but as a guidance range and in the current market, I think it's prudent to have 88 as part of our guidance range. Just a comment to the wide range here is that the deterioration that we've seen, especially not only in radiators, but especially in radiators, where you mention a 40% drop in terms of volumes, that increases uncertainty and therefore risk increases for us, Olli, and therefore we apply the wider range. Question regarding volumes. For the whole group, how were your volumes developing? The second question, can you comment on the volume outlook, you are seeing going forward? Is the decline we are seeing going to continue? I think that I tried to answer that on an earlier question, and we decide to give you this guidance in terms of the market as a whole, and we don't see major differences in gaining or losing market share here for Purmo Group. If we take our radiator division, as we say, there has been a deterioration, and we believe that there's gonna be a continued deterioration in the fourth quarter in the market as a whole. We actually believe the market is gonna be down 40%. That means that the overall radiator market for the full year 2022 is actually gonna be down 25%, approximately 25% the whole year 2022, the whole market radiators. For 2023 outlook, as we said, we believe that there's gonna be a smaller, lower single-digit reduction in the overall market in 2023 in light of construction rates in this year, next year. When it comes to ICS, we actually this is now ICS excluding these beautiful solutions we talk about, right? We talk about a kind of flat development leading into Q4, and we actually believe that Q4 is gonna be slightly down in the fourth quarter leading into 2023. Remember, the ICS markets are lagging because of their more focus on new construction, are lagging renovation. We actually expect and plan for a market in ICS products and solutions to be lower in 2023 than 2022, and that is something that we're planning for. Then we come to our beautiful solutions business, right? That has grown strongly and will have a good development in the fourth quarter as well, and we will end the year at, like, having grown this business the market has grown with around 30%. Not us, but the market has grown with 30%. We believe that's gonna continue to grow in 2023, thanks to heat pumps and energy efficiency. Long answer to a short question, but importantly so. Yes, thank you. Questions regarding cash flow. Cash flow has been weaker than last year. What are your expectations going forward regarding your net working capital and cash flow? Yes, that's correct. We come from a period in, let's say, during the pandemic where we had very strong cash flow, and this was in turn driven by a favorable improvement of net working capital. We had low net working capital balances, because it was supply constraints and we could deliver everything we had on our hands, et cetera. That then reversed into a situation where we currently have more inventory levels than needed, and we are now working to rightsize that. The development is, yes, it's been weak because of higher than wanted working capital levels, but there is an element to rightsize, not to come back to the 2020, early 2021 situation, but to somewhere in between where we can have the right level of net working capital. Thank you. There seems to be no questions from the chat, and I believe no questions from teleconference lines, so we are about to conclude this Purmo Group's Q3 2022 results webcast and conference call. We were very happy for you joining us today, and we want to see you again soon. We wish you a very nice rest of the day. Bye for now. Thank you. Bye. Thank you.