Ladies and gentlemen, a warm welcome to Purmo Group's Q4 2022 and full year 2022 results webcast and conference call. My name is Katariina Kataja, I'm Head of Investor Relations here at Purmo Group. Today, joining with me, I have John-Peter Leesi, who is the CEO of Purmo Group. He will present the results in full today. Please note that we have a Q&A session in the end of this presentation, where you have the possibility to ask questions through the teleconference lines as through the web chat. Please also note that this webcast will be recorded and will be found on the investor relations sites of Purmo Group later today. With this short introduction, we are ready to start the presentation. I will now hand over to John-Peter. John-Peter, please go ahead. The stage is yours. Thank you, Katariina. Good morning to everybody. It's of course with great pleasure that we will now share with you the 2022 results for Purmo Group and also sharing some thoughts about life going forward here. If we look at the core messages are pretty straightforward and hopefully quite clear. The overall message is fourth quarter of 2022, we continued to see strong earnings growth in our Indoor Climate Systems business. The group performance overall was impacted by the as earlier communicated by weak demand in the radiator business. And if we look at the four core messages here then, the strong performance in the Indoor Climate Systems business, particularly when we combine products into solutions and deliver complete solutions to the market, continued strong. The second point is around the radiator business, we have indicated this before, that with the supply chain corrections that we saw on the back of a very strong first half in 2021, we now see a correction in the markets where a lot of our customers are reducing their inventory levels and the underlying demand has been supplied from the inventories in distribution. Therefore, we see a weaker demand environment, that has been almost reaching its fourth quarter of 2022. we have launched earlier the Accelerate PG program, which is a program to improve our EBITDA with EUR 40 million by the end of 2024 and actually EUR 20 million already in 2023 in terms of a run rate improvement. This program, Accelerate PG, is progressing now according to plan, which is very good. In the beginning of 2023, where we are today, we normally then also announce some guidance for 2023, and our guidance is simple and straightforward, and we'll come back to it later in the presentation. It is that we believe, and we aim at delivering an Adjusted EBITDA, a financial result in 2023 that is similar to 2022, which is the EUR 92.9 million we have reported. Of course, there is some sensitivity and therefore we provide the range ±5% to that number. There is also a proposed, from our board, there's also a proposed return of capital for 2022, similar to a dividend, but return of capital of EUR 0.36 per Class C shares and EUR 0.07 for our Class F shares. Another change is that we will go from two payments per year to actually four payments in 2023. Continued strong development and growth in our Indoor Climate Systems business. Radiators having a tough fourth quarter. accelerate pg according to plan, very good. Our financial guidance is to remain, keep profitability at the same level in 2023 as in 2022. Let's look at some headline numbers. This is Purmo Group as a whole. It's the full year. We grew net sales with 7% in the full year compared to 2021. You can see that we came just north of EUR 900 million, EUR 904.1 million for the year. This is driven, partly by organic growth, around 3%. There is also a contribution from some of the M&A we've done, specifically around our Thermotech business in the Nordics that was acquired at the beginning of this year, but also a contribution from the Evroradiator in Russia. Those two components mainly explain the growth of 7%. If you look at the Adjusted EBITDA, our earnings level, we then see a drop of 11% to EUR 92.9 compared to previous year, 2021, where we had EUR 103.9. We see a drop in earnings here, but it's still the second-best earnings in the modern history of Purmo Group. Of course, we're not happy with earnings actually going down year-over-year, but it's still a high number. This is also shown when you look at the four-year trend here in terms of comparability. You can see that we've grown earnings 12% per annum since 2019. Looking then at our Indoor Climate solutions systems division, we have double-digit growth. What is driving this is basically the value of putting embedded systems together and usually linked, often linked to a energy source, which is an air-to-water heat pump, but also connected to renewable energy sources as solar panels. This is driving growth in markets where this is also supported by government incentives. You can see that this translates pretty much to 26% in growth, bringing us to EUR 425 million. If you look at the components of that growth, yes, there is some contribution from our acquisition of Thermotech in the beginning of the year in the Nordics. You can see also that the majority of this 26% is a price and partly also a volume growth effect. Looking at our earnings level, also a growth in earnings here of 19% between the years. You can see that we have now reached EUR 51.9 million. This is now the first time when actually the ICS division, the Indoor Climate Systems division, generates higher profits than our radiator business. Moving to our radiator business, you can see then that for the full year, we have a drop of 5%. The organic drop here is just a little bit more, is actually -7%. What is important to recognize here is that we underlyingly here, due to the market correction and the following or resulting, demand weakness, you know, the volume drop in this business has been a whopping 24%, including the effect of Russia here. 24% volume drop, fourth quarter, which we will come back to, was the peak of this drop, is then translating into a net sales drop of 5%. Looking at the EBITDA then, we see an earnings level of EUR 50.3 million. It's still EUR 50.3, and it's still 10.5%, but it is 24% down year-on-year compared to a very strong year last year. Even if we take earnings drops seriously in Purmo Group, I mean, 24% down and 46% fourth quarter is a serious drop, and we're working hard to improve that. You know, in this environment, all the people, all the men and women, boys and girls that work in radiators have done a really good job in offsetting this massive volume drop with cost savings actions. They've actually done a good job, which we're really proud of. Coming then to the execution of our strategy in Purmo Group. We're very excited about being this. We are going to become the leader in sustainable indoor climate comfort solutions. We say that we're gonna reach this, and it's gonna be defined by what our customers think, not what we think ourselves, right? On this North Star, this journey of being able to put our beautiful products together in solutions, and solutions will de-deliver two levels of value. One value is ease of installation and peace of mind for the installers around the world. The second value is for the end users, you and me and everybody, to enjoy energy efficiency and sustainability in how we heat and cool our homes. That is our North Star. That is our purpose in life for all the 3,500 people in Purmo. We're now executing on this strategy, and here you can see our growth strategic themes or strategic growth themes. Solution selling, putting products together, smart products, having products that are not seen in isolation, but products that are connected to a system. We also have growth markets. On the solution selling side, our business in Italy under the brand Emmeti has performed really, really strongly, and that is just the very example and emblematic of what I just talked about. Solutions for energy efficiency and ease of installation, that's the living example of what we want to do across the world, starting with Europe as a whole. Smart products, during the end of last year, we could see that the demand for heat pumps continued very strong, and we struggled partly, you know, with even finding enough heat pumps and be able to deliver to our customers. We also spent a lot of time and effort in developing a new control range, which is called Unisenza Plus, and we will come back to that and describe it in a little bit more detail in a couple slides. On the growth markets, unfortunately, at this very moment, it's about exiting Russia, and that program is continuing as we speak. Below operational excellence, this accelerate Purmo Group is now in full speed. We have people charged to specific actions and work streams, and we have now confirmed that we have now hit a fourth quarter, of eur 1.4 million. These are numbers expressed as a run rate, as a yearly run rate, and the number looks small, but that number is gonna grow in the coming months. It just shows that the program has legs and is delivering. We continue to fight inflationary pain with deploying and announcing price increases. Even if some raw material prices have come down, we have seen, you know, other inflationary pressures pushing things up. We have continued to increase fourth quarter, and we'll actually continue to do that also in the first quarter. As we said earlier, rapid cost actions in the radiator business has been a very good response to the volume drops we've seen in that business. 34% down fourth quarter, 24% down in terms of volume of radiators in the year. On sustainability, it makes us especially proud, you know, under the leadership of our Head of Sustainability, Sam Hodlin, we're making a lot of headway here. We're getting all our metrics in place. We're inspired by becoming better. Our Scope one and Scope two greenhouse gas emissions decreased by 13%, and the carbon intensity has reduced as well. It makes us super proud on the back of last year, having committed to science-based targets, which we are now setting and getting certified. We have also now joined the United Nations Global Compact initiative. All cylinders are humming now for us to become even better in sustainability. That's the execution of our strategy. Now let's look at some exciting things. We try to focus in these calls a little bit, showing what products and what technologies we work with. We've just selected two examples of what we're doing here. Historically, Purmo has worked with a number of wild-grown controls platforms. We have had certain controls for various types of radiators. We have had controls for underfloor heating. We have had certain controls for towel warmers, et cetera, et cetera. We have, for the first time here, we've developed something that is called Unisenza Plus. It is logically built on the Unisenza product we launched last year, that addressed the underfloor heating part of our business. We have broadened this to allow many products to be connected to our Unisenza platform. This includes electronic radiators. What you see up there, you actually see an electrical radiator on the top picture there. It's a beautiful radiator with the lake outside the window. That one now has an embedded control which has also a reoriented functionality in one version of it, where it has motion detection, where it can adjust temperatures depending on how much movement you have of human beings or even animals inside a room. Some more intelligence going in there. The first platform now, this is the second phase in our controls evolution here. An important aspect of this product is that the hardware is now adapted to the future third-party home automation platforms. When these big giants then will agree on exactly which technology and which protocols to have in the communication for our home automation, this system is now prepared from a hardware perspective. It's not, you know, loads of money immediately right off the bat here in terms of sales, but it just shows that controls is now becoming more and more central in our system solution offering. This is now a beautiful building, and we're taking this as an example of our prefabrication of underfloor heating in the Nordics, right? We have our wonderful company, Thermotech, and this is now Thermotech's initiative in Finland, and it is actually not too far away from here. It's actually over there. It's a two tower blocks in Helsinki. We're talking 19,000 square meters and 32 floors in total. It is 143 apartments. Honestly, these are also hotel rooms, right? We have now delivered a complete system, underfloor system. This is linked to district heating, right? We are not talking heat pumps here and gas boilers or electrical boilers or oil or anything like that. This is district heating, fjärrvärme in Swedish, right? What we have done is that we've done the specification, the drawings, and we've also done the installation here. It's a complete solution in Finland in the spirit of what we've been doing in Sweden for a long time, and also what we're doing in Italy for quite a while as well. Another example of what we're trying to do here. Let's now fourth quarter more in isolation. We looked at the full year a few slides ago. If we now fourth quarter, which we knew was gonna be a challenging quarter for us, and we have also indicated that to you in previous calls and conversations. Here are the headline numbers. EUR 206 million in sales, 7% down. Earnings at EUR 16.3 million in terms of Adjusted EBITDA, it's 28% down. The percentage is then around 8%, which is a drop compared to the 10% that we had last year. Here is some more detail, this fourth quarter comparison year-to-year. purmo Group as a whole, you can see a 7% down that we have indicated before. If you look at it organically, it's a little bit more drop. It's actually 10% down because we have the contribution from bringing Thermotech into the family. Looking at the EBITDA level at EUR 16.3 million, you can see that that is a big number down, being 28% down, this is basically driven by what we have talked about, the radiator volume drop, low production levels, under absorption of cost, which is then causing this. If you look at it by region, you can see that when we look at this fourth quarter again, you can see that we have the overall drop of 7% here. The big drop, of course, is in the markets that are what we call central and formerly Eastern Europe, markets like Poland, markets like Russia, et cetera, where we've seen a big drop during the whole year. fourth quarter, we also saw a bit of a drop in Western Europe. We're fourth quarter that is 9% down. This is pretty much in line with how the profile we were expecting to fourth quarter. let's look at the ICS division. Of course, here we jump again, and we become very excited. 25% up in earnings, bringing us very close to EUR 100 million in sales. Also a earnings growth of fourth quarter of the ics. There is some contribution, as we've said many times from Thermotech, and since the Thermotech business is in its majority, if not all of it, is in the ICS division, you see that it has a bigger contribution of 8% to that growth number. Still, the organic growth is very healthy, almost touching 20% for the year. You can see that products like heat pumps, solar panels, piping for underfloor heating and cooling, but also ceiling solutions for heating and cooling are developing strong. In terms of markets, we especially see markets like Italy, Brazil, and Germany developing well. You can see how that translates nicely into the growth of earnings as well. Here we have the radiator division, this is kind of the major reason for why we have this drop overall. You know, organic sales decline of fourth quarter, and a volume decline of actually 34%. If I include Russia, 34%. If I exclude it, I think it's 33%. A big drop in volume there and sales a little bit less, 25% drop, thanks to price increases. You see the impact of volume dropped to the right where we have a 46% drop in the EBITDA level. Let's move into other important metrics for our business. At the end of the third quarter last year, our net working capital peaked at close to EUR 130 million, EUR 129 million. If you look year-on-year, we have an increase of 35%. There are two reasons for this development. What you can see with the orange bars is, of course, fourth quarter of every year, you can see that sequentially working capital goes down because seasonally we deliver a lot, and then during the beginning of the next year, we start building up working capital as well. That development we have seen that it actually drops in the fourth quarter. However, due to the fact that we have price inflation in raw materials and we also have this effect with the market correction and the weaker demand, inventory levels have increased, which you can see in the table to the right. You can see that fourth quarter of 2021, you can see that we have a growth of, what is it, EUR 17 million, EUR 16, EUR 17 million in inventories. What is important is then that the if we look at the third quarter when we took a number of actions, when we saw that net working capital levels were high, we took a number of actions. At the time, if I look at the, if I just look at the net working capital in relation to net sales, it has come down from 14% to around 10%. We're not saying that this is good enough, and that's why we're working intensively in improving our net working capital efficiency across the group. It's also part of the Accelerate PG program. This is our cash flow, and the bars are up and down here. At least, you know, Q1 in 2022 was highly negative. If you, if you look at the overall picture here, you know, in terms of an adjusted operating cash flow, we delivered EUR 51.9 million in cash flow, which is slightly better than last year. You can see that even with an Adjusted EBITDA, which is at EUR 93 million or EUR 92.9 million and compared to EUR 103.9 million last year. Lower earnings contributing to cash flow, but thanks to a lower net working capital build up during the year of EUR 16.9 million, even with an increase of CapEx, we still managed to improve cash flow. The cash conversion then when we look at cash flow in relation to EBITDA, we see has improved now to 56%, almost 56%. Again, we're not resting on our laurels and say, "This is good enough." We need to continue to improve the cash conversion of this business, which we are confident that we will be able to do. Looking at the net debt development. When we met the last time, we reported a net debt in the third quarter of 2022. At the end of the third quarter of 2022, we were at EUR 288 million. That has now come down to EUR 275 million, our leverage ratio is now still under three. Even if it's at spitting distance of three, it is at least below three at 2.96. We are working on our net working capital efficiency, and we will be seeing improvements. We also need to remind ourselves that we've been clear on that there will be points in time, during time when we will have pop over the three level in terms of net debt leverage. For the moment, we are below three. Looking at comparability adjustments, if we focus on the third column from the left, you can see that for the full year of 2022, these amounted to EUR 21.7, you know, as a total positive adjustment. The M&A related transaction and integration costs, again, in the third column of EUR 1.6, is then related to the M&A that we have worked with and also completed during the year, like Thermotech. We have restructuring costs, which are mainly relating to a factory adjustment we did in Ireland, but also due to the Accelerate PG program that is now delivering. We have some restructuring cost of EUR 6.2 there. If we go down to the bigger number of EUR 12.9 million there, impairment and write-down charges, we've done two write-downs of our assets in our Russian business. That is what that EUR 12.9 is. Bringing us to a EUR 21.7 in total. Looking at our net financials and depreciation and amortization, I'm focusing maybe a little bit on more on the left side, on the net financial items. There are two increases here that are worth commenting. Everything is worth commenting, but we choose to comment only two of them. On the interest net, you see an increase from EUR 1.3 last year to Q4 2022, where we have EUR 3.2. This is driven by the slightly higher debt levels, but also due to the fact that we have some variable interest rates, or we have variable interest rates, not for everything, but most of our debt. Increased interest rate as well as a slight increase in debt. That is why the EUR 3.2 has become EUR 3.2. We have an increase also in our FX, in our exchange gains and losses. Apparently here we have losses since it's a minus. That is actually relating to the weakness. It's our cash and liquidity balances in some of our businesses, and this is relating to the British pound. It is relating to the Swedish krona, but also the Polish zloty, that the weakness in these currencies are then translating to a bigger loss here than before at EUR two and a half million. There is a small effect of mark-to-market valuation of our FX forward contracts in our hedging of FX as well. The big part is the weakness in Polish zloty, Swedish krona, and the British sterling pound. As you can see, this becomes minus EUR 7.3, which is 3.5% of our sales, which is grow higher than last year. I will then move to our tax situation. If you start at the very top, you can see that for this financial period of 2022, we had EUR 14.8 million in calculated tax expense, right? If you look at the losses and the possibility in our deferred tax reporting here, we can see that we can increase our deferred tax assets with EUR four and a half million. There is some drop over from last year, which brings our total income tax expense for the year to EUR 8.4, then lower than EUR 14.8, mainly thanks to the deferred tax assets here. If you go down and look at the non-deductibility of our in our tax returns, you can see that our profit before taxes started at EUR 21.6. There are things that are not deductible in our tax return. The Russian divestment activities, EUR 12.9, restructuring costs, China divestment, and some trademark amortizations. Right? That actually brings our profit before taxes adjusted for non-deductible items. If I then compare our income tax of EUR 8.4 with profit before tax adjusted for non-deductibility, we come to a tax rate of 20.1%, which is then lower than 27% last year. Overall, that number looks okay. This one we don't talk about because we've already talked about it. Finally, to leave this meeting on a high, we want to talk about Accelerate PG because we're excited about this program. Don't start reading all the text and, you know. This program addresses an earnings improvement for Purmo Group of EUR 40 million in EBITDA run rate at the end of 2024. Already in 2023, it targets EUR 20 million in run rate. In order to do this program, we also need to do investments. We calculate those investments to be EUR 43 million, of which around EUR 33 million of this will already happen in 2023. These are costs relating mainly to restructuring costs, right? The majority of this money is actually cash items. It's not non-cash, it is actually cash. You can see then, and we won't go through every detail here, but if you, if you look at it, there is an element of footprint optimization. We have 22 factories across our world. We have 39 warehouses across our world, and there is an optimization opportunity in making our logistics and supply more efficient. That is part of it. We say it's approximately EUR 11 million. Overhead optimization, when it comes to delayering the organization, taking away management levels, making hard decisions on where we need people and where we don't need people, is bringing us around EUR 5 million. The sourcing activities and value engineering, these are, you know, ideas and innovations where we choose to work with certain products instead of other products and certain materials instead of other materials, looking at our supply base and rationalizing our supply base. You know, it's gonna generate at least EUR 9 million here. We come to this beautiful thing around pricing. When you think about the decentralized organization with a lot of local activity on pricing, there is a massive opportunity when you start comparing across markets and countries, and you can see anomalies. We're now addressing these anomalies to see why is a customer that is very similar to a customer over there getting these type of rebates rates. Why do we have these T's and C's here and not there? That gives rise to a lot of opportunity, and we then assess that to be at least EUR 9 million here in terms of pricing. When it comes to growth, you know, there are growth initiatives to address some market opportunities here and there. That's not all growth. In this program, as you can see, most of this EUR 40 million is addressing our margin, our cost levels, and our efficiency levels. There is not these wild ideas about growing the business in this program. This program is real, it's tough, and it is delivering as we speak. This brings us to the financial guidance for 2023 that we already told you. Our earnings, Adjusted EBITDA in 2023, is expected to be on a similar level as in 2022, ±5%. Simple as that. We remind ourselves always at the end of these calls about our targets. Our target is to grow, have net sales growth above the market organic growth, supplemented by notable M&A. We want to reach profitability in terms of Adjusted EBITDA margin above 15%. We want to keep leverage below three times EBITDA, net debt below three times EBITDA. At times, we might pop over. We've said that. We continue to say that. We have a dividend policy of paying dividends in terms of dividend or return on capital as 40% of our annual net profit. With that, thank you very much, and we're ready for questions. Yes. Thank you, John Peter, for the good presentation. We are now ready and open for your questions. We will start to take the questions from the teleconference lines. I will ask to open the lines, please. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Anssi Raussi from SEB. Please go ahead. Yes. Thank you. Hi, everyone, and thank you, Joppe, for the presentation. I have a few questions, and the first one is regarding your guidance. Could you give a bit more color on your guidance, like how you maintain your EBITDA level in declining volumes? Like, how do you see your comparison numbers? I think your H1 comparison numbers are relatively strong, and you will lag 2022 numbers in H1, and you expect the improvement to happen in H2. Am I thinking this right? Correct. The logic behind the issuing a guidance or taking a view of our earnings being at the same level in 2023 compared to 2022 is based on the following, that we think that the radiator market has had its bigger adjustment in 2022, and we talk about the market as a whole, and we think to some extent that the brunt of that we fourth quarter of 2022. we have said, and we continue to believe, that the market for radiators in the full year 2023 is still gonna be lower than 2022. We say, and we said before, that we think that that market is gonna be around 5% lower. The market is gonna be 5% lower in the full year 2023 compared to 2022. In terms of the profile during the year, we're gonna see more challenges in the beginning of the year. The first half, where we're now, is gonna be weaker than the first half in 2022. We expect to start seeing an improvement during the summer and then during the second half. That is the radiator business, and it's very much in line in how you described it, Anssi. We confirm what you just said. H2 is where we're gonna see year-on-year improvements. When it comes to our ICS business, we believe, yes, this business is driven more by new construction. We say roughly 70% of the driver of that business is gonna be new construction. We knew that new construction was hit later than renovation when we started seeing weakness in the construction markets. We believe that the new construction is going to be weaker in the full year of 23 compared to 22, and we are going to see more weakness there than we see in the radiator markets. Having said this, within the ICS systems business, both products and solutions, there are pockets of growth where we anyway see growth. Anything that relates to energy efficiency directly, like the heat pumps we are supplying, that business is going to continue to go strongly. We also have all the components around thermostatic valves where you can set temperatures. They bring energy efficiency to homes as well. We have pockets of business that is actually doing well, even if the overall ICS market is going to be challenged in 23. That was reason number two. Reason number three is that we're driving our acceleration program, Accelerate PG, that is gonna deliver run rate improvements of EUR 20 million in 2023. Even if the periodic effect might not be EUR 20 million because that's a run rate effect, we're gonna see a significant part anyway improving our earnings in 2023. The fourth reason, I'm gonna stop after four, Anssi Raussi, is that we see the inflation pressures coming down a little bit, right? Our price implementations will now have more impact in the business. Last year, our price announcements and increases had a delayed impact. Now we're more in line with responding to what is happening in the market. I hope that helps answer the question. Yes, that was great. Thanks, really helpful. If I actually ask a bit more about this acceleration program, I understand that the run rate will be EUR 20 million by the end of 2023. Can you give us any estimate, like what kind of P&L impact you expect to see in 2023 already? I think it's. Obviously, it's not gonna be the full EUR 20 million, but it's gonna be a double-digit number anyway. We need to calculate that a little bit more properly to give you a better answer on that. Okay. That's clear. My next question is regarding the balance sheet and leverage. How do you see these to develop in 2023 as you will book quite a lot of one-off items with cash flow impacts in 2023? Yeah, I think when you look at our net debt, as you recall, we're at the EUR 275 million in net debt. Normally, during the beginning of a new year, that inventory level is going to be built up, and we think that is also gonna happen in this year, and that of course is gonna increase net debt, and it's gonna take some cash as well. We are prepared for that, and we are planning accordingly, and we don't see any problems. We have the eyes on the ball, and we're gonna manage it very diligently. We are fully aware of how that is going to develop, and we see no problems in managing it. Okay, thanks. I guess that's all from me for now. Thank you. Thank you. Please state your name and company. Please go ahead. Hi. Svante Krokfors from Nordea. Thank you for the presentation. Anssi actually had quite a lot of my questions, but a couple left regarding you mentioned that you believe that in Q4 was the peak in customers' destocking. Also relating to that, radiator volumes were down 33% in Q4. I think you guided before it could have also been 40%. How should we look at these two things combined? Yeah, no, I. We remember that we actually have said 40%. Unless you have it on tape, I think we said up to 40%, right? I wouldn't read too much into... It's 34% if I include the Russia, okay? It is pretty much in line with what we thought, maybe a tad better, but I don't think that that is an indication that Q4 in general was a better quarter than we expected. It was very much in line, whether it's 34% down or closer to 40% down in terms of the total market volume. Pretty much in line, Svante. Okay. Yeah, the question actually was, you are confident that the destocking effect peaked in Q4. Is that correct? Well, the destocking is continuing, we can see that with some customers, they feel they're through the destocking, right? When we were in the middle of Q4, we couldn't see any customer. As I told you before, we talked to every of our top three customers in every country about this, everybody confirmed higher stock levels in the middle of Q4. Now we can see that in some markets, they are on more normal levels. That brings us to the conclusion that the overstock in distribution were at its highest in Q4. It still needs to be washed through. We think that that's gonna take all the way until the first half of 2023 before that is fully normalized, we see the normalization happening as we speak. Sorry for long answer, but I hope that clarified. No, thanks. That's very helpful. On the radiator side, you mentioned that you have taken actions to adjust for the lower volumes. Could you give some concrete examples of what you have done? I mean, in our, in our big volume factories, you know, in this example, panel radiators, you know, we've been adjusting workforce with every tool we have in the toolbox in terms of adjusting variable cost to the lower demand. Sometimes it's painful, sometimes it's less painful. We've of course tried to optimize and exploit any type... Exploit is the wrong word. To actually get help from government programs that support businesses from actually having to take these actions. There's been loads of people throughout our operation that has been reduced due to this, and I can mention it's pretty much across all our panel factories. I don't wanna confuse you by saying that those cost savings are not part of the Accelerate PG program because these are not permanent. These are cost increases that will come back when the volumes return, which we're sure they will. Thank you. Regarding your opportunities to conduct M&A, let's say on the heat pump side, where you mentioned that there was even some product availability issues. If you look at your balance sheet now and looking at net debt to EBITDA is probably going up during H1, what's your true firepower in conducting M&A? Are you limited from the balance sheet currently? Well, I think first of all, we take the fact of being very close to three in net debt leverage, we take that seriously and we kind of deal with it. The way we deal with it when it comes to our investment prioritizations, we invest in anything related to Accelerate PG in order to deliver the EUR 20 million and the EUR 40 million respectively by 2024. We're not holding back in any way around that. When it comes to our CapEx investments, capital expenditure in our factories, we are more tough and rigid and disciplined and prioritized. We need of course to keep maintenance and keep our machinery healthy, so we do those. When it comes to expansion, we're more kind of disciplined there. When it comes to M&A, we are a little bit more picky in terms of our M&A activity, but we are working intensively in the space around our three targeted areas for M&A, which is system integrators, companies and businesses like Amity, like Thermotech, also within heat pumps and ventilation. Those three areas we are having contacts and we're discussing with people, but we always keep in mind our net debt levels and what we can do in terms of firepower. I would say we're more disciplined, even more disciplined now than we've been before. Okay, thank you. That is all from me. The next question comes from Anssi Raussi from SEB. Please go ahead. Thanks. One more from me. Related to Russia, sorry if you mentioned this already, but I understood that Russia was less than 4% of your sales in full year 2022. How much was it in Q4? Just thinking about the run rate. Can you give us any update on the divestment process? Thanks. If I start with the divestment process, I. It's complicated, but we do work with a number of potential suitors or buyers with the business and it's ongoing. It has taken a little bit longer, and it might even take a little bit longer before we're ready. We have very good conversations and we are actually making progress. That's all I can say on the divestment area. When it comes to the Russian business as a whole, remember we've always been in Russia, where we've been selling businesses that we have. Not businesses, products that we've been importing mainly from Poland, et cetera, and we've been selling to Russian customers. In connection with the acquisition of the majority in the joint venture in Engels, we then also established our footprint as a majority owner of a factory of radiators. In that business, we then also sell to our partner, which is then Bosch Thermotechnik in Russia. They're a client to us. If I look at the overall business, it's around EUR 28 million, all of what we do in Russia. Sales to our customers, sales to Bosch, around EUR 28 million in total. That business is down in 2022 versus 2021, and our profits are down as well. If I then say EUR 28 million out of our EUR 904 million, right, that is the number. I don't remember, Anssi, exactly the Q4 number right on top of my head. I would say that that is. I know it's down. I don't know the% down, actually. Okay. Yeah, that's fine. Thank you, Joppe. I don't have any further questions. There are no more questions at this time, so I hand the conference back to the speakers. Thank you. Let's then move to the questions from the chat. We have 1 question here from Toki Dubai. Just three quick questions. Number one, let's go one by one. During the Q3 update, you said your volume decline for radiator business will be anywhere between 20% and 25%. Did this in fact happen, and what do you expect for full year 2023? Let me repeat. I might be answering the question by repeating this. In the first quarter, the volume of radiators for us was down 10%. The second quarter was down 20%. The third quarter was down fourth quarter was down 34%. The full year drop in radiators in 2022 versus 2021 was 24%. Yes. What do you expect for this year? We believe that the market is going to drop single-digit compared to 2021. The whole year, single-digit, and we say around 5%. Around 5%. We believe we can retain market share, so pretty much the same. Good. Let me just re-emphasize. First half, more drop. Second half, less drop or even a little bit of growth. Good. The question number two is Italy has helped performance of ICS. How long is this growth sustainable, and when do you think it tapers off? It is true. The Italian market has been strong for two reasons. One reason is that we have a strong position with our brand, our business, our employees, our people, our customers, everything. That's 1 reason. The other reason is that there is a drive for renovating homes for energy efficiency. Big drive supported by the government. Italy is actually the trailblazer of green transition of homes and for heating and cooling of homes. I wanna applaud, we want to applaud Italy for being the leader in Europe on that. How long is it gonna last? Construction levels in Italy are still not at some form of a peak level. We believe that we believe that construction will continue to develop in a good way. We think we're gonna see less growth in the overall construction in Italy than we've seen historically over the last years. When it comes to the government incentives for this, you know, there is a tax rebate program in Italy where people can get the investment back that they invest. If you can improve your home in terms of energy efficiency, you can get up to 110% of that investment back in the form of a tax rebate over the five years, and there are different batches depending on the home and so on. You need to be able to improve the energy efficiency of your home. We've been looking at that and what the government says about that. The government is now keeping this incentive program. In some cases it is taken down from 110% to 90%, so there is still a significant incentive for people to renovate their homes. We don't expect to see as much growth in our Amity business, Italian business as we've seen. Like last year we grew our business in Italy with 50%. We don't think we're gonna see those growth rates continuing forever, so it's gonna taper off, but it's gonna be at the healthy level. Good. One more question, what has been the impact of cold rolled steel price on margins? Has the decline in price of steel slowed down margin contraction? Yeah, I mean, the what we need to do as a business like many others that have an exposure to a raw material like this, is that we need to be very fast in passing on price increases. That is a change that we've implemented and deployed in recent years, especially when we've seen this very strong volatility in steel price. We're faster. When we have a steel price increase, we're faster in moving that into a pass on to our customer. We have to do that. It's necessary and we have to do it. There is a delay. The effect of that delay we've actually seen in our numbers in 2022. These prices will come in, these price increases, these higher levels. We will see price increases kicking in faster in 2023. That is also one of the reasons, as I said earlier, why we kind of even with the weaker market in 2023, we indicate that we will be able to deliver similar level of profits in 2023 than 2022. Good. Thank you, John Peter. We have no other questions in the chat for now. If you still wish to ask questions, please do. We can wait for a while. There seems to be no other questions. We are about then to conclude Purmo Group's Q4 2022 and full year 2022 results conference call and webcast. We were very happy to see you again. We want to see you soon again. Have a nice rest of the day. Thank you. Goodbye.