Ladies and gentlemen, a warm welcome to Purmo Group's half-year financial report 2023 results webcast and conference call. My name is Katariina Kataja, and I'm the Head of Investor Relations at Purmo Group. Today, joining with us, we have our CEO, John Peter Leesi, our new Chief Financial Officer, Jan-Elof Cavander, as well as our Chief Operating Officer, Erik Hedin. In this presentation, we will give you an update of the strategy execution during the quarter, which will be followed by the progress made with an Accelerate PG program, which was last launched last year. Finally, we will cover some details of the quarter financials. Please remember 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 well as through the web chat. Please also note that this webcast will be recorded, and it will be found on the investor relations sites of Purmo Group later today. With this short introduction, we are ready to start. I will now hand over to John-Peter. John-Peter, please go ahead. The stage is all yours. Thank you very much, Katariina, and good morning and good afternoon to everybody. Thanks for joining us to talk about the first half of 2023 for Purmo Group, with special focus on the second quarter, being at April to June. Let's look at the core messages that we want to deliver today is four of them, and if we look at the first one, it is that the market has been challenging for the whole industry. We operate across the globe, but the big focus and big share of our business is in the European market. The European construction market, both new construction as well as renovation, has been weak. We've previously, when we compare ourselves to the year 2022, we've seen a period of very strong activity and also some pre-buying and stocking activities going on in the market. What we've seen in the beginning of 2023 is that we've seen destocking activities, where actually true demand is not seen through the orders that come to Purmo Group. We believe, and it appears, that the destocking activity in our supply chains, in our distribution networks, et cetera, have actually been pretty much completed, and we now see true demand coming through, and we're actually seeing an horizontal movement in terms of true demand now, because the construction market generally is weak. The overall first message is that our markets have been challenging with low volumes. This leads us to the second point. This is our perhaps even the main message in our narrative for today. That is that Purmo Group has very successfully now focused on improving our margins. It's been about price management, very active, very strong, and it's been about cost management and cost savings across the board. It's not only raw materials. Remember that we've enjoyed a bit of raw material tailwind, but other costs have been increasing, and we managed to decrease cost across the board. We've also focused actually on networking capital and capital efficiency in our operations, and Jan-Elof will later show that we do post improvements in our operating cash flow for the business. Both margin management as well as cash flow management has been a big focus for Purmo Group in this second quarter. The third message is that our Accelerate Purmo Group program, we call it Accelerate PG, APG, it's a program driven by our chief operating officer and his team. Erik will join us a little bit later here to go through the details of this. This program is a very important program, and it's progressing ahead of our plans. It's a very good achievement. With these factors and these facts, we have the guidance, the financial guidance for our performance in 2023, therefore, remains unchanged. Our earnings in terms of Adjusted EBITDA, we target to be at the same level as last year, 2022 being EUR 92.9 million. When we say similar, we mean, you know, ±5%. Let's look at some more detail in our business. Here you can see the headline numbers for Purmo Group. To the left, you see net sales, to the right, you see EBITDA, you can see the impact of volume drop here. Our net sales is dropping 26%, even if we, over a longer period of time, being three years, have posted a 9% compounded growth per annum. This quarter, the second quarter of 2023, shows a big volume impact, bringing us down 26% to EUR 180 million in sales. Looking at the EBITDA, you see a corresponding impact, where actually earnings drop as well in terms of adjusted EBITDA, down 24% to EUR 21.2 million. That is less than sales drop. One thing we want to highlight then, is that we have been able to improve margins here from 11.4% to 11.8% in terms of Adjusted EBITDA margin, for the second quarter compared to the second quarter last year. Let's look at the two divisions that we are operating with. This is then the Climate Products & Systems division. Here we have a big margin drop, and we have a big, almost a EUR 50 million sales drop as a consequence of that. You know, looking at the actual sales margin in money, we've almost been able to protect that through price management as well as through cost savings, right? I mean, volume drops in our panel business is around 34% in the quarter. These are massive drops because of the market. Look again here, on the EBITDA side, we've been able to even with an 18% drop year-on-year, we've been able to move our margins up from 11.1% to 12%. This is a good performance in this market environment. Looking at our Climate Solutions division, where we sell climate solutions directly to our installers, not through our wholesalers, this market is, for us, currently, very concentrated to the Italian market, as well as the Nordic or the Swedish market. In the Swedish market, the construction activity, new construction, has been very, very weak, generally speaking, and this has impacted our so-called Thermotech business in the North. We also see the Italian business, which is our biggest market, where we've been very successful over the years, to sell solutions directly to installers. We've seen that market being so strong in 2022, now in 2023, with the change in the government incentive programs, we see a normalization. We see a normalization of this with lower incentive levels. Still incentive levels, but lower incentive levels, and that's why you see through this correction, we see a quite big drop in net sales. However, look at the margin here, and this is something that we're proud of, and the fact that we've been able to reach 18% or over 18% in EBITDA margins for this division. It's more of a testament, whether it's 18 or 17 or 16 or 19, you know, we are targeting higher margin than this over time. This is a testament to the fact that selling Climate Solutions that work together offer ease of installation for installers, energy efficiency for end users, works. The thing just works. When the markets return, and when we're able also to expand into other geographies, this is a business that we truly believe in. These are the normal points that we share, looking at our strategic execution and things that we've been doing during the second quarter. We will show you a couple of examples of solution selling, one in Finland, one in Sweden. With Smart Products, we've launched two products during the quarter, and we will look at them soon. It's an electric radiators, and it's a new type of cross-linked plastic pipe. When it comes to our growth markets, we have then, during the quarter, we've signed an agreement to divest and sell our business in Russia, all our activities in Russia, to IPLS. We reported that on the 28th of April. Operational excellence, doing a lot of good things, and we see the results of that in our margin. Erik Hedin, our COO, will talk about this in just a few minutes. On sustainability, we are working with various things. This is just an example. We've installed solar panels in our factory and our site in China. We're working intensively with these EPDs, environmental product declarations, for our products that are needed in the future to just show the sustainability footprint of products. When it comes to this sustainability reporting, we're now committing to this Corporate Sustainability Reporting Directive, the one that is called CSRD, and we will be fulfilling all those requirements by 2024. In terms of greenhouse gas emissions, our greenhouse gas emissions have come down, which is a good thing. Of course, sales have come down as well, so the carbon intensity in our business has increased somewhat. At least the emissions of greenhouse gases in terms of CO2 has come down. Let's look at a few examples. This is now. We're always excited to talk about these projects, and we've taken now two projects from two markets that are especially weak, actually. Many of you are either in Finland or Sweden, we've seen some significant weakness in these markets. In new construction, it's- I've never seen those drops generally in the market, and many of you that follow the building industry will recognize this as well. These are two projects. They're each worth around EUR 30,000, the first one is the hospital in Tammisaari, in Finland, somewhere in Finland, and this is then a system where we deliver underfloor heating and snow-melting equipment, and also, there will be radiators involved in this project as well. The thing is, which is one of our differentiating themes is that this is a prefabrication solution, which again creates energy, not energy, it creates ease of installation for the installers. The second example is the office building in Malmö, which is the highest wooden office building in Sweden, with 11 floors and you can see close to 8,000 square meters in total. This is where we wanted to highlight this one because it's an example of what we call a multisystem delivery. We've combined underfloor heating and domestic water, portable water, and also, yeah, domestic water and tap water into one multisystem, which is again, prefabricated and generating the benefits we were just talking around: ease of installation and ultimately energy efficiency for the end user. A couple of two smart products here then. We have then launched a product that is called Jali Plus, and this one is integrated with the product that we have announced earlier, which is the Unisenza Plus control system. Electrical radiators, even if we have this hype and we deeply believe in heat pumps and all of that, there are also many applications where we see electrical solutions and product coming into play. If you think about the new build, very well insulated, solar panels on the roof, solar panels on the facade, the need for heating is actually very, very low, and you can satisfy the need of energy actually through the sun and photovoltaic solutions. Therefore, electrical also has a play, and that's why we're addressing this opportunity, and we're strong in this. This is a new product. It also offers decorative variations in terms of flat front. We also have a smart control system with Unisenza Plus linked to it, and through the Zigbee protocol, we can then connect it to the gateway, and with the gateway connectivity, you actually have voice-controlled capabilities through Google Home as well as Amazon Alexa. Here we see smart controls being integrated into a electrical radiator. The second product we would like to highlight is that we have developed a new material composition for our cross-linked five-layer pipe, which is in buzz language, it's called PEX-c, the way we cross-link it. What this one gives then in terms of benefit is what is very well portrayed in this picture with the man or the woman that is actually bending it without the kink, is that it enables ease and quick installation when it comes to piping. It's another example of innovation that we launched during the second quarter. The second quarter for Purmo Group was challenging because the volumes were weak. We responded well as an organization. Everybody in Purmo Group responded well. We managed prices, we improved margins, we reduced cost, and we improved cash flow. In the long term, the underlying secular trend around Climate Solutions and the consumer preferences for sustainability, the consumer preferences for more energy-efficient solutions are unabated. They're stronger than ever, right? What we also see, that we've seen in Italy being the trailblazer, is that we see more and more government incentive programs kicking in, supporting the green transition in a lot of geographies, of course, Europe being one of the important ones. In Purmo Group, we're completely optimistic and positive beyond a challenging second quarter when it comes to volumes in being able to tap into these opportunities. Now we will hand over to Erik Hedin, who will talk us through the Accelerate PG program and some of the details that have happened. Erik, over to you. Thank you, John Peter. Good morning, everyone. My name is Erik Hedin, and I'm the Chief Operating Officer at Purmo Group. As John Peter mentioned, Accelerate PG is progressing ahead of plan, and we have really good outcome from many of initiatives that the team is driving, and we also continue to assess further opportunities. We want to remain ahead of targets, and the program wants to support, of course, the challenging current markets and support the 2023 full year outlook. First of all, let's remind ourselves about the targets that we set out with Accelerate PG program. In terms of Adjusted EBITDA run rate improvement, we target EUR 20 million at the end of 2023, and EUR 40 million at the end of 2024. It's a two year program, and this can be summarized in a few components of where the improvements will come from. First of all, footprint optimization, around EUR 11 million. Overhead optimization, circa EUR 5 million, and then sourcing improvements, around EUR 9 million target. Pricing, another EUR 9 million, and then not the least, growth, where we target EUR 6 million improvement. The cost of the program in total is around EUR 43 million, and we expect EUR 33 million of that cost to incur in the PNL in 2023. Now let's have a look at what we achieved in the second quarter. If we focus here on the third column in this chart, which is the second quarter of 2023, we first see that the run rate of the initiatives implemented, we have now achieved EUR 16.5 million annualized run rate improvement in terms of Adjusted EBITDA, and this is ahead of plan. We're well on track to exceed the EUR 20 million target for 2023. If we look at the periodic impact in Q2 alone, we see that it's EUR 3.4 million in the second quarter, and then more than almost EUR 5 million for the year to date. In terms of net working capital, we have achieved EUR 6.1 million cumulative improvement in permanent working capital and inventory reductions, and the one-off cost in the second quarter was EUR 3.5 million. If we look at the full year outlook, we expect Adjusted EBITDA to have more than EUR 10 million of profit impact in 2023, net working capital to reduce inventory levels by more than EUR 10 million end of 2023, and the one-off cost to be more than EUR 33 million at the end of 2023. The one-off cost is phased towards the end of the year, and this is linked to the consultation process and footprint initiatives, which will incur in the PNL towards the end of the year is our expectation. These, both EBITDA and working capital is ahead of our expectations of where we expected to be at this point, so we're really proud of this achievement, and the team has been working really hard across a number of initiatives across the group. This is really, really good. On the footprint optimization, to date, we only have a small EUR 0.8 million impact realized in the PNL. We have made the intention to cease operations in our panel radiator plant in Zonhoven, Belgium, and this is in order to address the permanent overcapacity in panel radiators in Europe. We're also Purmo Group has the opportunity to streamline our operations to be more in line with the market demand and invest in other areas. If we now go to the next page, I'm gonna show a few more specifics here on what we achieved behind these improvements. First, in terms of growth, we're pushing existing products to other markets where we've not yet successfully penetrated, this is a big opportunity in Purmo Group. We don't have the full offering in all markets. In addition, we're introducing new products, and John Peter mentioned a couple of examples earlier, where we launched new and innovative products into our markets. The second component is the pricing. This is not inflationary pricing adjustments, but more strategic or recurring pricing improvements across our markets and the product portfolio, and this is proceeding to plan. We have realized EUR 6.8 million year to date, and it's EUR 2.8 million more than at the end of the first quarter. This is also supported by pricing excellence tools and processes to improve how we handle pricing across the group, and this is both when we had the inflation increases, but also at the current markets, when some indicators are favorable, but other costs are increasing, and we need to then constantly manage pricing. The third area is sourcing. We have EUR 4.8 million program to date, and it's a EUR 0.9 million improvement in the quarter. Here we have done some outsourcing of components where we are not efficient internally. It's better for us to source it from a third party, and this has brought us saving. We also have renegotiated underfloor heating insulation materials, which is a market where you need to be quite close to the customers because of the high volume of these products in terms of space, and we have renegotiated in many areas there and also optimized packaging. The fourth area, overhead optimization, it was a very big component in PG Up a couple of years ago, but we're still pursuing further opportunities to rightsize the overhead by improving processes and tools, but also to reorganize how we drive the business with a new operating model. Footprint optimization to date is marginal, but we expect a significant effect from this, from the ongoing initiatives, not limited to the one we announced in Belgium, but also other opportunities that we're looking at. We have taken action on external warehouses, where we have consolidated some of our footprint in the UK. Lastly, net working capital. We have EUR 6 million improvement to date, and at the moment, we're addressing UK, Belgium, and Italy, where we're doing bottom-up, detailed, change of the inventory steering and the stock levels, and this has brought us permanent improvement of EUR 6 million. On the other hand, there is the overall inventory development has not yet improved, and Jan-Elof will further clarify the overall working capital development. From the program point of view, we are seeing permanent improvements coming through bottom-up. In to conclude, overall, the program is having solid progress in our view. We have strong engagement around the program, and we're doing really, really good stuff, and we continue to look at further opportunities, and we're confident to achieve our 2023 and 2024 targets of sustainable profit improvements. Thanks for listening, over to Jan-Elof, who will present Q2 figures for Purmo Group. Thank you, Erik. Good morning from my behalf as well, and great to have you all on the line. My name is Jan-Elof Cavander, and I started as the CFO of Purmo Group now in June 2023. I have to say in the beginning that I have joined a very exciting company, which is really in the core of the global sustainability journey and the green transition in Europe. This is something that I find truly exciting and interesting. Even though the second quarter from the business perspective was challenging and the market environment out there is very tough, I want to say a couple of words on the mega trends before we deep dive into the numbers for the second quarter. We have a several long-term mega trends that really support our business. Couple of numbers. 17% of all energy consumption in Europe is used to heat and cool homes. Furthermore, circa 40% of EU's CO2 emissions today come from buildings. On top of this, based on EU studies, up to 75% of buildings in European Union require deep renovation in energy efficiency field. This kind of sets the scene where we do business and where we operate as Purmo Group. Let's now turn to the presentation and have a look at the Q2 financials in more detail. For Q2 2023, net sales amounted to EUR 180.3 million, which is a decline from the comparison period, as John Peter explained. Adjusted EBITDA amounted to EUR 21.2 million as a result of this volume decline. However, most importantly, and the big highlight for the second quarter was the Adjusted EBITDA margin for us, which was 11.8%. This represents a 0.4 percentage point increase from the comparison period, despite the lower and weaker volume environment. This is really a great achievement for us in this tough market environment and a tough marketplace, and a tremendous thank you goes out to the whole team around Europe and globally behind this achievement. Here you can see Purmo Group's financial performance in total in more detail. Net sales reduced to EUR 180.3 million from the strong comparison period. The organic sales drop was 25% from the comparison period. Acquisitions had no impact on the second quarter sales, and the changes in FX rates decreased the reported net sales by 1%. This decline in net sales was a result on the continued weak market sentiment out there in our operating countries, which led to lower volumes. Adjusted EBITDA amounted to EUR 21.2 million, which is a 24% decline from Q2 in 2022. This is, of course, driven by the lower volumes. The highlight here is that the adjusted EBITDA drop in percentages is smaller in the absolute profitability than it is in net sales, which obviously means a improvement in the margin. Overall, we were very successful in the margin management as Purmo Group on the second quarter. We had several activities ongoing in pricing, in variable costs, in fixed costs, and we can also see here the benefits of the Accelerate PG program that really supported our second quarter profitability when we talk about relative profitability in terms of the Adjusted EBITDA margin. The strong achievement in the EBITDA margin also brings a lot of confidence for the future periods as it demonstrates this ability to generate margin even in lower volume environments. Next, let's have a look at our total net sales divided by geographical areas. Our largest region, Western Europe, declined by 18% from the prior year. Central and Eastern Europe declined by 46%, driven largely by the weak demand in Poland, which is hit hard by several reasons. Northern Europe, which consists mainly of U.K. and the Nordic countries, saw an 18% drop in total, and this drop was more visible in the Nordic markets, i.e., Sweden and Finland, where both the new construction and the renovation market was in a decline. Southern Europe region declined by 35%, where Italy had the biggest impact in this region. As discussed, there were significant incentive programs in place in the Italian market in the previous year, which increased and elevated volume in this region in the prior year. This year, there is also an incentive program in place for the Italian market, but this is, however, a more limited one compared to the previous one. Let's move on to have a review on our divisions. First, Climate Products & Systems division. In this division, we sell unique products and complete systems through the very important wholesales sales channel. That's Climate Products & Systems Division's business. Net sales decreased to EUR 144.7 million from the previous year, which corresponds to an organic decline of 23%. Acquisitions had no impact, and the net currency impact was around minus 1%. This decrease comes from the weak market demand and the low volumes that we witnessed in the markets. The volume decline of radiators was minus 34%, and the strong activities that we had in pricing led to an offsetting impact of plus 6% price increase in the radiator business. Adjusted EBITDA amounted to EUR 17.4 million, which is 18% decline from the prior year. Here we can see the same story as on the Purmo Group level, that we have 18% decrease in the absolute profitability in adjusted EBITDA, whereas the net sales decrease was 25%. This drop obviously comes due to the volume decline and the margin improvement, which is highly important here as well. It increased to 12% compared to 11.1% in the comparison period. The reasons, the key reasons behind this improvement in the adjusted EBITDA margin comes from the sales price impact and the very strong and strict cost management that we have had in all business units in the quarter. Also, the benefits of the Accelerate PG program are visible in the profitability numbers for this division as well. We move on to our second division, the Climate Solutions division. In this division, we sell complete and integrated sets of solutions of heating and cooling homes. We do this via the Emmeti business in Southern Europe, mainly in Italy, the Thermotech business in the Nordic countries, and in the UK and Ireland, we do the business via the Merriott business. Net sales of this division decreased to EUR 35.8 million, which corresponds to a 31% organic decline from the prior year. Here as well, acquisitions had no impact on the quarterly sales, and the net currency impact equal to minus 1%. The key driver behind the decrease in the volumes come from two places, Italy, where the governmental incentives were very high and very supportive of the business in the comparison period, and secondly, from Sweden and Finland, where we see the construction business down. Those two areas contribute mostly to the decline in the net sales. Adjusted EBITDA is EUR 6.6 million, which is 24% down from the prior year. Really, the highlight on this page is the Adjusted EBITDA margin, 18.4%, 18.4% margin with net sales of EUR 35.8 million. With this volume level and the sales of EUR 35.8 million, we generated this high amount of EBITDA. This is an indication and brings a lot of confidence when we look forward in this business, as we can already, with these volume levels, generate this level of margin in the business. This is thanks to very successful margin management and the ability to scale costs when volumes go down. Next, let's move to networking capital. Our networking capital remained quite flat against the comparison period, EUR 111.3 million against EUR 111.2 million. As Erik explained, we have been able to achieve permanent and long-term impacts from the Accelerate PG program in networking capital and in inventory management. However, despite this effect from the APG program, our inventories is relatively flat compared to previous year. The reason is that when volumes have decreased, there is certain amount of time lag before our finished goods inventories and raw material inventories go down and adjust to the new volume level. Purchases and production will be adjusted to the new volume outlook and the current volume outlook, but there's a certain time lag, so it takes a little bit of time before we see the reduction here. The improvements that we make in the APG program related to inventory management are very strong and permanent, and give permanent improvements in our processes and systems and ways of working, what comes to capital efficiency. That's an important notion. Going into the one other highlight of the quarter, we put a lot of emphasis in the Q2 on margin management coming from sales prices and cost management. That was very high priority, the margin management in the second quarter. Second high priority area was cash flow management. Cash is king. Our adjusted operating cash flow ended at EUR 67.8 million in the last 12-month period, compared to EUR 38.8 million in the comparison period. We have an increase here, and the cash conversion amounted to 81.22%. Just to remind all the listeners and viewers, this adjusted operating cash flow is a very important KPI for Purmo Group. This differs from the operating cash flow in the IFRS cash flow statements. Here, we take into account the Adjusted EBITDA for the last 12 months, then we take into account the net working capital change over the same period, and we also include the capital expenditure for the last 12 months to have a good proxy of our ability to generate cash flow on long-term basis from this business. Net debt and leverage. Our net debt ended at EUR 230.7 million at the end of the period, which is a decrease from year-end 2022 number. This decrease in net debt is obviously driven by the successful issuance of the EUR 60 million hybrid bond that we emitted earlier in this year, in the month of February. This takes our leverage to 2.76, which is below and in compliance with our target of being below the level of three in the leverage ratio. Our debt portfolio remains roughly similar to what we had at the end of the first quarter, with around EUR 280 million syndicated loan facility that is expiring in Q4 2024. We move to financial guidance for 2023, which remains unchanged. The guidance is that our EBIT, Adjusted EBITDA this year is expected to be on a similar level as prior year. In our vocabulary, similar means a change within ±5% range from the previous year. We also reiterate the previously communicated targets for the Accelerated PG program, the targeted Adjusted EBITDA fully run rate, which converts to a full year impact of EUR 20 million by the end of 2023, and cumulatively EUR 40 million by the end of 2024. This guidance that is kept unchanged, this is based on the current volume outlook, strong margin management, with the fact that Accelerated PG program is developing ahead of plan and giving support to the financial performance of Purmo Group. However, this being said, the visibility for 2023 is somewhat limited due to the macroeconomic uncertainties that we see in the marketplace. Finally, I would like to go through our long-term financial targets and the dividend policy that we have. For net sales growth, we target higher than market growth for our top line. On profitability terms, we target in excess of 15% Adjusted EBITDA margin. On leverage, our target is to be below 3.0 level. Our dividend policy is that we aim to distribute at least 40% of our annual net profit as dividends or return of capital. I would like to thank you all for your attention, and we will next move to the Q&A section. I will hand back to Katariina. All right. Thank you for excellent presentation, John Peter, Jan-Elof, and Erik. Now we are in the Q&A session, so we are open and ready for your questions. We will start taking the questions first from the teleconference lines. So please open the lines for us. Thank you. 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. Hi, all. A few questions from me. First, I go with the basic one. About the Climate Solutions division, how much there were price increases and how much volume declining? If we look at the average volume decline in Climate Solutions, it's around 36%. Looking then at the net sales reduction, which is a bit less than that, we actually have a price increase that covers up for the difference. There was quite a significant drop in volumes in the Climate Solutions during the second quarter. I understand that. That's clear. Thanks. The second one about your Accelerate PG program. In H1 this year, I think your adjustment items were around EUR 8 million. I guess it's roughly EUR 25 million of adjustment items expected in H2 related to Accelerate PG program, or am I right here? Yes. Hi, Anssi, it's Erik. I can answer this one. Yes, you're right, as I tried to indicate on the earlier page, the periodic phasing is not even, because when we come to these footprint initiatives, we expect to make a provision when we make the commitments for a footprint, and that's why it will be linked to when we make that decision, but it's not yet made. At the moment, we can't make those provisions. Okay, clear. Maybe related to this previous question, how do you see your cash flows in H2? Because I think your cash flow from operating activities was it EUR 8 million in Q2, net change in cash was actually minus EUR 3.5 million. If we think that there will be cash impacting items coming from this Accelerate PG program, any other elements to look at here in H2? I think that, Erik, on the CapEx side, we've had quite low CapEx in the first half. There is a so-called seasonal increase of CapEx in the second half versus the first half, depending a little bit around our investment plan when we're transitioning some of our manufacturing to Rybnik in Poland, depending on how that falls in, whether it falls in at the end of this year, whether it falls in the beginning of next year, remains a little bit to be seen. Right, Erik? In terms of CapEx, we're a little bit heavier in the second half than in the first half, right? Correct. On the other hand, the change in net working capital is favorable in the second half. It's the normal seasonality. We have the seasonal low point for working capital is December, so it means when we start the year, we usually have a seasonal negative cash flow in Q1 and Q2. We recover that cash flow in Q3, Q4. That's the normal seasonality. This year, we, of course, work to reduce the permanent inventory and also to right size the inventory and other elements of working capital with the lower volumes. We expect a positive impact in the second half from change in net working capital. Great, that's helpful. Thanks. Maybe the last one from me is about your guidance. I know that you reiterate your guidance of ±5% compared to last year, any indications or estimates at this point, like, are you going to pick the lower end, or higher end, or the midpoint, or? I, I- Any comments? I think that the, you know, as Jan-Elof said, and we've said repeatedly, is that there are market uncertainties around, you know, what is going to happen. We've previously, when we've talked with you, Anse, and everybody else, we thought that we were gonna see a volume and a demand pickup towards the end of the second quarter, and also an improvement in the second half of 2023. We've also been clear very recently that the demand pickup has been slow to show, we actually now, in terms of our planning and so on, we actually plan for volumes being a little bit more subdued also in the second half of this year. This is what we're planning. We're gonna see somewhat of an increase in the normal seasonal high period being, you know, the end of Q3 and the beginning of Q4. you know, by and large, we kind of don't wanna be more specific than saying that we are within that range we've talked about, similar to last year, ±5%. I understand. Thank you. The next question comes from Svante Krokfors from Nordea. Please go ahead. Good morning, Svante Krokfors from Nordea. Thank you, Jan-Peter, Jan-Elof, and Erik for the very extensive presentation. Couple of questions. Could you elaborate a bit on how the outlook has changed if you compare to end of Q1 and now end of Q2? Also relating to that, how has the. Or what are the assumptions for your guidance changed Q1 compared to Q2? It seems like the market is a bit weaker, you probably have a bit more of cost savings now, compared to the end of Q1 in your assumptions. Yeah, thanks for the question. The volume outlook has decreased somewhat compared to the original view for this year. To offset this volume impact, we are focusing very strongly on the margin management. To offset and compensate this somewhat decline in the volume outlook for this year that we already see in the second quarter, this is offset by pricing initiatives, and especially on cost management side and stringent cost management overall. Thank you. The fact that you haven't changed the run rate at the end of 2023 from EUR 20 million, and you are already at EUR 16.5 million, should we expect that you could exceed that? Regarding the EUR 40 million by the end of 2024. Is there a chance that we could be above that? I think, in previous cost savings programs, you have exceeded you r initial targets. Good morning, Svante. Erik here. Yes, this is our ambition. At the moment we're not raising the targets. We are pleased that we're well on track to exceed EUR 20 million, as you can see from the quarterly trend. Forty million is still far away, so I would say that's probably still a good target for 2024. For 2023, we expect to surpass EUR 20 million, but we don't think it's meaningful at this point to come with a new target. We expect to exceed EUR 20 million, that's correct. Svante, just to kind of overlay that, we've expressed it earlier, Erik, like, you know, the performance in APG gives us stronger confidence that we will meet the target of EUR 20 million this year. You know, that's how we kind of think about it. Thanks. clearly, Italy is normalizing, but do you see any other markets in Europe where we could see similar support from governments that could kind of replace the decline in Italy? I think, first of all, that underpinning the trend is that we see increasing programs, government incentive programs kicking in. Remember, this goes back to the original ambition set by the European Union long time ago, where the nations needed to set target as well as establish programs for incentivizing a green transition. The nations of Europe were rather weak in responding to this, and now we see these improvements. You know, a lot of places like Germany, you know, have announced this EUR 10 billion program of EUR 2.5 billion per year coming over the coming years. We just need to remember that when these things hit the wires, they are big news, but when we look into the details of it, they still need to be formed and there are decisions to be made. On a practical level, we will try to tap into all of these when the time comes. It's important that some of the bureaucracy in these nations, to really get these incentive programs to happen, have a little bit of a lead time. Thanks. Will you invest in any growth initiatives at this stage or will you now focus more on the cost savings program and also on organic deleverage, given your net debt to EBITDA level? Shall I start, Jan-Elof? Yeah You can add on. I mean, our strategic ambition with the focus on the climate solutions will require investments in our business, right? Yes, we are doing a bit of smaller investments now to be able to capture this opportunity that we have in front of us, right? At the same time, with the volumes we've seen this year, our ultimate responsibility now is to manage our margins, manage our cash flow, in order to have the license to pursue our strategy and also create the important funding for doing it. We're trying to do it in parallel, Svante, and we are doing it, but of course, we need to keep an eye on the ball when it comes to the delivery of our near-term financial results as well. Okay, thank you. That's all from me. The next question comes from Joni Sandvall from Nordea. Please go ahead. Thanks. Maybe a couple follow-up questions. Still, in the solution side, I'm just thinking about the Italian market normalization. Is it now on the normal level, or should we expect some further decline in volumes in H2? I think that if you just look at the market backdrop, that 2022 was an incredible year in Italy overall, and it was an incredible year for us as well. This was supported by the incentive program, which was called the Superbonus program, where you could get 110% of your investment in your home, as long as you improve the energy labeling with two steps, and you could get 110% in tax rebates. That program has now been revised, and that program is now kicking in on a different level. The program is now 50%-65%, depending on type of home, of tax rebate. But for lower-income families, the program is still at 90%, which is a higher level. Overall, it's a less generous program. We have seen a market correction because of this. The investment levels in energy renovation in Europe, in Italy, has reduced, and we have seen quite the dramatic reduction, you know, evidenced by a 36% drop in volume. We have seen that. We think that the brunt of that has happened, and there might still be a little bit of a normalization going on. We also need to remember that there is EUR 19 billion of already approved tax credits in Italy, where projects need to be executed, right? There's still a bulk of business that needs to happen that has been approved previously prior to February 2023. We remain cautious. We don't think the Italian market is somewhat gonna collapse completely. It's gonna continue to buzz a little bit horizontally here, but it's significantly lower than it was in 2022. Okay, thanks. Question related to steel prices and other raw materials. I think the steel prices have been declining still. What should we expect when considering gross margin development going into the H2? Erik, you're the expert on steel prices. Yeah, I can comment on. I think steel is a good proxy for the overall development, but steel prices, when we started this year, we expected steel prices to rebound upwards during this year, and but that has been a more of a sideways development, and we can now almost see a, if anything, a slight decrease in the year to go. This is forecasts from third-party, and I think this follows a lot of other raw material costs as well. Overall, the raw material cost outlook is more favorable now than what we expected beginning of the year, and this is part of the compensating for the lower volume demand. Okay. Okay, thanks. A last question, maybe to Janne or Olof, about the financial expenses that were EUR 70 million in Q2. Is this a good run rate proxy also for the H2? Commenting on the financial expenses, of course, we have hedges in place on our interest rate swaps on our loan portfolio, with hedges part of that. As we know, the variable interest rates have been on a higher level. The market expectations on the variable rates is that we kind of see more horizontal movement there going forward. Of course, the exchange gains and losses, from internal transactions, can have a positive or negative impact. Overall, we should kind of be roughly on these type of levels. Okay, thanks. That's all from me. The next question comes from Anssi Raussi from SEB. Please go ahead. Thanks. one more from me, actually. If you zoom out a bit and, try to figure out where we are at, in terms of radiator volume trend, so how do you see the current demand, if we compare it to, let's say, for example, to 2019, which I think was the last so-called normal year? I. Just trying to figure out, if there is a rebound, let's say, next year. Yeah, that there are- Thinking about the magnitude. Yeah, it's a good question, and there are a couple of points to that. One is that the volumes of radiators right now are, from an industry perspective, but also from Purmo Group being the leader radiator manufacturer, but is that it's on a kind of a like historical low. When we look at the numbers and the total volume of radiator, it is really low in 2023, and it's gonna be for the full year 2023 also really low. The comparison then to 2022, which actually proved to be a very high number in terms of radiators, partly driven then by a pre-buying activity and an expectation that the steel prices were gonna increase, and many customers and wholesalers started buying stock, right? I would say that the 2022 volume was inflated. 2023 is a low number. What happens now when we go forward is that the big part, the lion's share of energy renovation in Europe and the old building stock of 240 million or 250 million buildings that are in dire need of energy renovation, they will buy radiators. They will buy radiators because we are agnostic to emitter solutions. We can do underfloor, we can do in ceiling, we can do in walls, we can do radiators, we can do fan coils, we can do all kind of emitters, so there's no real vested interest here. We know that when you go in and renovate old buildings across Europe, radiators has a role to play. We do believe that when the renovation activity really kicks in in Europe, we will be selling more radiators. Okay. Yeah, thanks. There are no more questions at this time. I hand the conference back to the speakers. Thank you. As we have no questions from the lines anymore, then we will move to the chat, and we have two questions. These are both from Rauli Juva from Inderes. First question: "Hi, if the underlying demand remains the same, should we see meaningfully higher sales in Q3 and Q4 compared to the Q2 level as destocking has ended? What we see is more hand-to-mouth. We see real demand kicking in, right? As we said earlier, we believe, and we're conservative in our approach now because we focus on margin, and we focus on cash flow, so we're conservative in our plan and subsequently our actions. We believe that the demand for our products, generally across all our products, is gonna be weaker than we have talked about earlier. We believe that there's gonna be a slight seasonal pickup because of just normal season, heating season, right? It's gonna be a slight pickup in demand in the high season during the fall. That's all. Good, thank you. The second question is the following, and it's kind of the same, which we had before, but I ask it anyway: "How do you expect pricing to develop versus raw material cost in the second half? Will those be roughly similar, or do you see a margin impact from that dynamics? On pricing, of course, we see certain price pressure in the markets, but we are very strong and very strict in our pricing management, and we are very sticky on that. Good. Thank you. Now we don't have any questions anymore in the chat, and I guess not from the lines either. We are in the end of this presentation and Purmo Group's half-year financial report 2023 webcast and conference call. I know that there has been many, many of you following us. We thank you for participating, and we wish you a very pleasant rest of the day, and we wish to see you again soon. Goodbye. Thank you. Thank you.