Hello, and welcome to the Nokian Tyres Q2 2021 interim report. Throughout the call, all participants will be in listen-only mode, and afterwards, there'll be a question-and-answer session. Just to remind you, this conference is being recorded. Today, I am pleased to present Päivi Antola. Please go ahead with your meeting. Good afternoon from Helsinki and welcome to Nokian Tyres Q2 2021 results conference call. My name is Päivi Antola, and I am the Head of Investor Relations in Nokian Tyres. Together with me in the call, I have Jukka Moisio, the President and CEO of the company, and Teemu Kangas-Kärki, the CFO of Nokian Tyres. In this call, we will go through the Q2 results, followed by a Q&A. Jukka, please go ahead. Thank you, Päivi. Good afternoon on my behalf. Welcome to Nokian Tyres results call. I'll start with the prepared notes. I move to page two, just to reflect the highlights of this quarter. Net sales and operating profit increased significantly. Net sales were EUR 460 million, about 55% up with comparable currencies compared to 2020 Q2. That was driven by strong demand in all markets and also that all the business units and business areas contributed to growth, keeping in mind that Q2 in 2020 was particularly hit by COVID pandemic. Segment operating profit was at EUR 89.6 million, up from EUR 24.4 million in 2020 Q2. The biggest impact came from increased sales volume. Then we had some headwind from currencies by EUR 5 million in a negative territory. I move to page three, some of the financial highlights, call out some key numbers. As mentioned, the top line up and segment operating profit up. The percentage in segment operating profit was 21.5% versus nine percent in second quarter 2020, and segments earnings per share at EUR 0.51 versus EUR 0.09 a year ago. Particularly good development in cash flow, despite the fact that we increased quite a bit receivables and working capital as the business picked up compared to 2020. Nevertheless, we delivered a positive cash flow in the quarter. Capital expenditure in the quarter were below prior year. This reflects the fact that some of the major investments that we were still completing in 2020, these programs are now behind, and we are working to get the benefit from those to mention, particularly the Dayton factory and as well as Spanish test track of the two investments that we've completed since the second quarter 2020. Half-year numbers, top line is up by 41.5% in constant currencies. Segments operating profit at 18.5% in six months versus seven point four percent, a year ago, and segments EPS at EUR 0.80 per share versus EUR 0.16 a year ago. Return on capital employed at this point of time, 12-month rolling is at 13.9% versus 10.6% a year ago, and equity ratio after six months, a strong 66%, as well as gearing low at nine point four percent. Interest bearing net debt at this moment after six months is EUR 140 million, and capital expenditure year to date, six months is slightly below EUR 40 million. In 12-month rolling, our net sales are now at EUR 1.62 billion, versus EUR 1.3 billion in full year 2020. This point, I hand over to Teemu, our CFO, to talk about the financial results of the segments and other financial details. Teemu, please go ahead. Thank you, Jukka. Starting with the Passenger Car Tyres business unit, the key figures and highlights, our net sales grew with comparable currencies almost 75%, driven by strong growth in Russia, followed by North America, Central Europe, and Nordics. All main markets clearly increased the net sales. Our average sales price decreased due to the increased share of Russian volume, which was the case already in Q1. Our operating profit clearly increased because of the sales volume, and we were able to record a segment operating profit close to EUR 71 million, and our segment operating profit for the period was on a level of 25%. In U.S. and in Finland, we have added new shifts to increase the production due to the fact that the demand is strong in all markets. If we move then to the next page where we can see the breakdown of our net sales and segment operating profit. Starting with the net sales, we can see that clearly volume is the main driver, the price mix is close to flat, minus one percent negative. We had a headwind from the currencies. I repeat the same comment that I made in the Q1 call, where I stated that the region or the business area mix impact coming from Russia is about three percent negative, the net price mix is about one percent for the Passenger Car Tyres. Moving to the segment operating profit, here maybe highlighting the material impact or the increasing or decreasing material cost in the Q2. For the full year, just reiterating our guidance that the raw material prices are increasing for the full year. In Q1, our estimate was about nine percent. Now our estimate has increased to the level of 12%, meaning that in the second half we will have a strong headwind from material unit costs. Meaning that if the full year guidance is 12% and for the first half we are small positive impact, then simple math indicates that in the second half the impact is negative around 24%-25%. In order to offset that factor, we continue to increase our prices as we have already done in the first half, in the second half, in order to be in a better position to protect the profitability of our Passenger Car Tyres business unit. If we look other aspects in the segment operating profit, you can see that the currency headwind, SG&A being closer to the normal level after the last year when we cut the costs, and we haven't recorded any charter commission in the period. Let's move to the Heavy Tyres, where the net sales and segment operating profit continued to grow. Our comparable currency net sales growth was on a level of 53% in absolute terms on a level of close to EUR 63 million, our segment operating profit close to EUR 12 million, the segment operating profit for the period was on a level of 18.8%. The volume development was driven by the customer's strong production levels and also the new product launches that we have made, therefore the demand was strong in all product segments within the Heavy Tyres business unit. If we look at first half operating profit for Heavy Tyres, we recorded all-time high segment operating profit. The inventories are at a low level in Heavy Tyres, despite the fact that we do our utmost to produce whatever we can to serve our customers in the best possible way. Moving to Vianor, the performance has been good in all countries, recorded top-line growth with comparable currencies eight percent in absolute terms close to EUR 92 million, and the segment operating profit on a level of EUR 10 million, and the profitability being on a healthy level of 11%. The operating profit improvement for the business has continued to be strong, supported by stable operations that we do in the service centers. As we have highlighted, the focus for this year is about growing the top line and focusing on the cash flow, and therefore we have recorded a strong cash flow for the first six months as commented by Jukka Moisio. Moving to our assumptions, there are no major changes. The demand is strong both for the replacement Passenger Car Tyres and for Heavy Tyres core products. Russian ruble is always a key factor in our performance. One addition that we wanted to include in our assumptions at this point is the logistic cost that we clearly see pressure coming from there. Full year impact is about high single EUR millions coming from the logistic costs. We have not changed our guidance due to the fact that the assumptions have not changed, and therefore we state that our net sales with comparable currencies and segments operating profit are expected to grow significantly for the full year. Okay. Over back to you, Jukka. Thank you, Teemu. I wanted to just remind that we have all-time high number of new product launches and want to draw your attention to Hakkapeliitta 10, which is our flagship winter range that will be available to consumers in the fall of 2021, and that will include safety and SKUs for passenger cars, SUVs, hybrids, and EVs, a very comprehensive size selection, and also good benefits in winter grip, comfort, and reduced noise level, better on-road stability and silent ride technology. This is simply to highlight our key product, but also keeping in mind that we have been launching late 2020, early 2021, and we continue to launch a record number of new products. This is an important driver for our top line and also in terms of getting higher and better price points for our products. To remind that we are committed to safe and sustainable manufacturing. In the quarter and this year, we've been included in the European Climate Leaders 2021 list for significant greenhouse gas emission reductions. Our U.S. factory also earned ISO 14001 certification in May and LEED v4 Silver certification in March. The Finnish factory earned ISO 45001 certification for occupational health and safety in January, and we inaugurated a solar power plant on the Finnish logistics center in June. These are some of the highlights in our sustainability, and that is an important part of our operation and important part of our commitment going forward. I move to page 13, our priorities for second half 2021. We want to drive the growth with new product launches and continuous improvements in go-to-market activities, so volume growth. We want to protect our cash flows by prioritizing investments and capital outlays and also manage our working capital carefully. We'll take mitigating actions to reduce the impact of cost inflation. These mitigating actions consist of price increases, which we've done in the early part of the year. We continue to do them in the second half. As Teemu was pointing out, there's significant raw material cost, logistic cost increases in the pipeline. We will counteract them with price increases, and also we want to keep the cost under control. This is the second mitigating action. There are two things to protect our profitability and cash flow against the cost inflation. We believe that with our valued brand, strong expertise, and strong production capacity, we are well-positioned to develop and meet those expectations in the second half. This completes my prepared notes. I want to remind everybody that we have a Capital Markets Day scheduled on September nine, 2021, starting at 1:00 P.M. The invitation to this Capital Markets Day went out today, so please put that on your calendars and keep in mind that that's the moment when we talk about the long-term, medium-term targets and ambitions. Now I open and hand over back to Päivi, and we open for Q&A. Päivi, please. Thank you, Jukka. Thank you, Teemu. Now we would be ready for questions from the audience, please. Thank you. Our first question comes from the line of Akshat Kacker of JP Morgan. Please go ahead. Your line is open. Thank you. Good afternoon. Akshat from JP Morgan. The first one on price increase. Can you comment on the price increases that you have implemented in your core markets as of now, Nordics and Russia, as well as the price increases in Europe and North America, to offset the different elements of cost inflation that you spoke about, raw materials, freight, logistics, et cetera? It'll be helpful if you could quantify the net increases that you've been able to pass through in different markets. That's the first one. The second one is on the Russian market. You've obviously seen some very strong volume growth coming in the first half, and you've also won market share in summer and all-season tires. Can you just share your expectations for the rest of the year in terms of what are you seeing on market dynamics? Just talking about different elements like inventory levels, pricing, and overall consumer sentiment as you look into the second half. The third one is on Dayton. Just saw a limited mention of Dayton in the prepared remarks. Has there been any change in the ramp-up plans of the plant looking out beyond 2021? Those are the 3. Thank you. If I start with the price increases by region, as I said, we have implemented price increases in all of our markets. Clearly, highest increases are in Russia, where they are significant in terms of percentage than in Central Europe and Nordics and North America. They are lower than in Russia, but the ambition is to offset in local currencies the price increases and the impact for the calendar year is we cannot offset the calendar year impact because the raw material prices are increasing, but on a rolling basis, that is the ambition to fully offset the input cost price increases. If I continue with Russian market. Obviously, we have had a good trade-in in Russian market. Why that happens is that we are strongly dedicated to Russia. It's an important market for us. We also see that some of the competition may not prioritize Russian market the same way we do, so therefore we've gained market share. We continue to see that momentum strong throughout the year and also into 2022. Inventory levels in Russia, from our perspective, are healthy, so therefore we don't see any excess. We see a strong sell-out as well as strong sell in our pipeline. As Teemu was talking about the price increases, so we've implemented price increases in Russian market, which are offsetting the raw materials and aiming to offset those also into 2022, keeping in mind that the cost increases are coming. We are quite pleased of the Russian momentum, and we expect to enjoy a good, strong volume into 2022. Dayton, no change. We continue to ramp up. We started the third shift during the quarter, and after the quarter in July, we started the fourth shift, and we continue to ramp up. In terms of just a general comment about the production, essentially, we are running flat out in all our factories. We have had a short summer break in late June, early July, but we are well loaded, and our main important task is to find additional capacity and capability which we can mobilize in order to supply the market. This is the situation. In terms of Dayton, no change. We keep on ramping up, and our ambition is to go into higher volumes in 2022. Thank you. One quick follow-up, if I may, on price increases. Is it possible to split out the price mix impact in Q2? Can we separate price and mix, please? As I have said earlier, in terms of going into the specifics within the price mix, in our case, we should look the long-term trend, not to only look the one quarter or even first half due to the fact that our customer portfolio is more condensed than with our competitors. There are swings that are not transparent on a long-term basis. And if you look at our Sure. Yeah, if you look at our mix in a macro level. Winter tires about half of the volume. Summer tires all- season is the other half. That typically is not the case. Typically, we have more winter tires than what we have had this year in the first six months. Yeah, I was just trying to get to the underlying positive price impact in that number. Understand that. Thank you. Maybe just to reiterate what I said earlier in the call that the region of the VA mix impact, the negative impact is about three percent. Taking that into account, the price mix is plus two percent, give or take. Thank you both. Thank you. Our next question comes from the line of Thomas Besson of Kepler Cheuvreux. Please go ahead. Your line is open. Thank you very much. It's Thomas Besson, Kepler Cheuvreux. I have a few questions as well. Firstly, I'd like to get a few comments on your new range that is going to support your market share and profitability in the next two, three years, particularly in the second half. Could you discuss the level of interest from your dealers and the level of orders already in the first part of the year for this Hakkapeliitta 10 range, please? That the first question. The second question is more on the bridge. You report for the second consecutive quarter in a row, kind of reversion of provisions for bad debt of EUR 5 million. That's EUR 8 for the first half. Could you indicate if there is more of that to come in the second half, or if you've already reversed everything that could be reversed in the first half? Thirdly, I'd like to get a few comments, if that's possible, on the level of profitability which is achieved in Dayton in 2021 compared with your plan. Are you ahead thanks to the unusual pricing environment in the NAFTA, or are you just in line with plan in North America? That's it for me. Thank you. Yeah. Maybe if I start with the CapEx and profitability. We are basically on our plan, so there's no change in that. Obviously, we will see then at the end of the year, because the bigger part of the volume is expected in the second half simply based on the fact that we add more shifts and they become operative as we speak. Therefore, of course, the volume and the profit generation is expected to be stronger in the second half. Now, most of the profitability improvements in the first six months are coming from a strong loading of Russia and also improved loading and Heavy Tyres performance. If you talk about the Hakkapeliitta 10 expectations, so it's in the early stages and shipments and so on, and I believe that the performance of the tire is very good. We are very pleased with the performance as we've tested that and so on. Obviously, what is important to see is that what is the external tests and what feedback they give, and those would be available in the early fall. So far, we see a good demand on that, and I think that especially this time, we have a very good and strong offering in winter tires throughout the Nordic, Russia, and also Canadian, the northern part of the U.S. territories. Especially, for example, in Russia, when we have Hakkapeliitta 10, Hakkapeliitta 9, Nordman 8, we have quite a strong lineup of winter tires, and the same applies to Nordics and North America. As this is very important for us, we've also taken enough capacity and enough focus to make sure that we are capable to deliver for that season. That's all I can say at this point of time. I believe that when we have a third quarter behind us and during the third quarter, there will be test results and similar available that externally you can also verify that this is a high performer as a product. You have the question regarding the bad debts provision. It's good to think that in the light of the events that we faced last year due to COVID, and therefore the picture was more gloomy than it is at the moment, and therefore we provided with our best estimate the bad debts provision last year. Currently, naturally, the outlook is better, and therefore we haven't put any bad debts provision year to date. Yeah. Strong performance throughout the value chain, including ourselves, our distribution, and so on. Yeah. Sorry. Thank you for the replies. I was asking if there are going to be more releases of bad debts provisions from last year in H2, or whether you've released everything you had because it's been a decent boost in H1. These are not releases. This is the delta between last year and this year. Last year we booked provisions, this year Yeah, I understand. Is there going to be again a gap between last year H2 and this year's H2, or are we seeing all the benefits of that difference for the year? As I commented, the outlook is more positive than a year ago, hard to comment in advance the bad debts provision. At least how it seems today, I'm optimistic about the second half. Okay. Thank you very much for your answers. Thank you. Our next question comes from the line of Mattias Holmberg of DNB. Please go ahead, your line is open. Thank you, and hello, everyone. Given what you know right now about raw materials and logistics costs, will you be able to fully compensate with price increases this year, or should we expect it to be a net negative? As I commented, for the calendar year, I'm not expecting to offset the raw material price increases fully. On a rolling basis, that's our ambition level in local currencies to offset the impact of increased costs. We watch this raw material evolution carefully. Obviously, as we have seasonal pricing and continued focus on this, we will seek to increase prices and to mitigate this as we go along because this is an environment that everybody understands that cost inflation is there and that the important thing is to take actions to mitigate that. The actions are really twofold. One is to increase prices, the second one is to contain costs. With these two, we seek to secure the profitability development. This is an environment that is not going to stop, but most likely this year, cost inflation will continue well into 2022, is our expectation. Therefore, working on that continuously is vitally important. Thank you. Maybe I'm just not smart enough, but can you please explain what's preventing you from simply adjusting your prices to cover the costs at this point, and why you need a longer time to compensate? As we said, this is our ambition that we offset, but obviously it takes a little bit time to work. You don't work step by step, but you work a little bit with, in Heavy Tyres, we have escalation, de-escalation, which have slight lag. In the other places, we work as quickly as we can. Understood. Thank you. Finally from me, you mentioned, I think, single-digit EUR million higher logistics costs for the full year. Would you be able to specify how much of that you've seen in H1, or if at all, it's an H2 issue? I would say that if you split that by two, then you are close enough, because it has started already in the beginning of the year. Yeah. It was clearly visible in the second quarter that logistic costs and the availability of containers and such at higher price was visible and also experienced by us. Great. Thank you. Thank you. Our next question comes from the line of Sascha Gommel of Jefferies. Please go ahead. Your line is open. Thank you very much for taking my questions. I've got a few items. On the guidance, we're now halfway through the year, but you still remain fairly vague about your 2021 performance. Any particular reason why you're not more detailed in your guidance for this year? No particular reason. We believe that we provided the guidance early in the year, and don't see any need to change that because it covers our expectation of the full year. I see. Okay, perfect. My second question would be on the mix impact in the second half of the year. Is it fair to assume that the negative impact from the Russia impairment will be lower, and then the new products will drive a positive product mix? Is that the right way to think about the second half of the year? Especially our expectation is that the negative impact will be smaller in Q4 due to the fact that Q4 was already a strong quarter in Russia. Therefore, the growth expectation for Russia in the fourth quarter is lower than in the first nine months. The new products, obviously, when they go to market and are being delivered, then they command better pricing than the older existing. This is, of course, something that we expect to help our second half. Hakkapeliitta, as mentioned, is something that is important for us, but also all the other new products. Perfect. Understood. My last question is on working capital. Your payables remain flat versus Q1, but your receivables went up. You had quite a significant increase in other payables. I was just wondering if you can help me reconcile those numbers a little bit. Clearly the receivables are increasing because of the sales increase. In payables, I think that is the action of or the result of all the actions that we have taken in order to improve it, and this is the end result of this one. The third point is the dividend that we recorded in our payables in this quarter that will be paid in December due to the fact that the board already decided, and therefore we took it away from the equity, and it is in payables. That path of the dividend is basically unpaid, but it's away from equity. Equity is a little bit artificially lower, and therefore this booking actually has an impact on that. Makes sense. One follow-up on the payables. Shouldn't the payables number also go up in light of the growing top line? Also rising raw materials, shouldn't that have a positive impact on your payables? It has an impact, but as I said, it also impacts the timing of our purchases and the inventory level. One quarter is too short period to look at it. Visibility. Okay. Perfect. more in the quarter three and quarter four based on the expectation of the raw material. Understood. Thank you. Thank you. Our next question comes from the line of Artem Beletski of SEB. Please go ahead. Your line is open. from SEB. Thank you for taking my questions. I actually have two questions relating to product mix. Could you maybe first comment on to what extent actually new products have been already visible in Q2 numbers, looking at, for example, Russia, growth there was clearly more than 100%, and whether those products like Hakkapeliitta have been impacting the quarter already? Looking at full year product mix, still a quite high share of summer tires, what you have been selling also in Q2. Is it fair to assume that on full year basis, mix or portion of summer tires would be in line with history of roughly 20% of the total? The last one is relating actually to Heavy Tyres, these record sales in the quarter. Is it basically, so say, maximum volume what you can deliver on quarterly basis within the segment, just keeping in mind all these capacity increases, what you have been doing over the past year, so are those basically completed now? Thank you. Thank you. About product mix, I would expect that the full year is similar to our past history when we come to the end of the year, including the full calendar year, it becomes comparable. Obviously, what is important is that the all-season volumes have increased and the share of all season is likely to go up and that comes to is in addition so that percentage is probably higher, but overall the volumes go up so that the share of various products will remain roughly at the same level as in the past. Therefore, you can expect that strong deliveries of winter tires. Yeah, we've shipped a lot more summer tires and all season in the first half, and we hope to catch up based on what I said, that the mix will be normalized by the end of the year. Your question regarding the Heavy Tyres production output. That is right that at the moment we ship everything that we can produce, and therefore I made the comment earlier that also our inventories are at a low level because we are not able to increase the inventory levels because of the high demand. Overall as a comment that we are really tight on capacity, so we see capacity opportunities left and right, and that is important, that has been in the end of second quarter and going into third quarter. That is the situation. Clearly very important to pay attention to that, an important operative job for us to make the availability and production run well. Yes, very clear. Maybe just on the topic of basically new products being visible in Q2 mix, is it fair to assume that you have been shipping already Hakkapeliitta 10, for example, on Russian market or has there been already some impact there? Some of that, yes, but I think that basically it's coming along as we speak. Obviously, the Hakkapeliitta 10 production and the studding and so on is ongoing importantly as we speak. Okay. Very clear. Thank you. Thank you. Our next question comes from the line of Panu Laitinen-Mäki of Danske Bank. Please go ahead. Your line is open. Yes. Thank you. I have two questions. Firstly, on the raw material cost inflation, can you kind of repeat the expected inflation in terms of percentage, and do you have a number in terms of euros for the second half, like you mentioned for the logistic costs? Secondly, given all the inflation and mitigation actions and what have you, do you expect the second half EBIT margins to be up year-on-year? If I help you in the math, I said that 12% roughly give or take for the full year. First half we have seen a gain in material unit cost, in percentages, if you just multiply that by two, you are on a level of 24%, 25%. In EUR, you can see that in our bridge we have shown a positive number of EUR 5 million, meaning that then the second half should be negative if the full year impact would be on a level of EUR 40 million, gain of EUR 5 million means that the second half should be on a level of EUR 45 million give or take. All right. Thanks. On the EBIT margins, do you have an expectation that you could share with us? Do you expect the margin expansion to continue in the second half? I have a view, but unfortunately we are not disclosing that. Okay. Fair. Thank you. We understand what needs to be done, and we work diligently to achieve. All right. Thank you. Our next question comes from the line of Pasi Väisänen of Nordea. Please go ahead. Your line is open. Great. Thanks. This is Pasi from Nordea. Firstly about the markets, I mean, what is the current status when looking at the market recovery and the sales volumes? When this current inventory restocking and the pent-up demand peak will be over, and when you are going to see an ordinary growth figures in Nokian Tyres? Secondly, about your guidance. Well, would it be a reasonable assumption that a significant sales growth actually means over 20% or not on a full year basis? Maybe lastly, just to confirm, should we then expect about 1 million annual volume increase in Dayton planned for coming years? Thanks. Okay. The market recovery, I think that if you look at the replacement tire market to the first six months of 2021 versus the first six months of, not 2020, but 2019, I think we are still behind that 2019 level in 2021 in first six months. Therefore, in order to get the recovery to 2019 level, there's still some way to go. Then, of course, what is also missing is then the potential or likely growth that has not materialized from 2019 to 2021. There are a couple of elements that still will help the volumes, most likely. Our expectation is LMC expectation that the markets will recover between from 2020 level quite a bit, but not maybe achieving exactly 2019 level in 2021. 2022, we believe that the recovery is full and maybe the momentum to continue growth will happen in 2022, so that actually those volumes will be higher than or at the same level higher than 2019. Significant, I think that that is an interpretation that obviously we see a strong momentum in our net sales and year to date constant currency growth in six months is about 40+%. That is what we have right now. In order to anticipate what will happen the second half, some recovery probably, the final quarter already, 2020 was a strong recovery quarter. Momentum of 40% will not continue the full year. Where it lands, difficult to anticipate at this point of time. What was the third one? Dayton volumes. We are basically working on with the Dayton volume so that we get to four shifts. We are also adding the lines to be able to build and cure four million tires. That program's ongoing, including the necessary expansions on the factory. We can expect that the volumes go up this year and next year and the year after we start installing the lines. Step by step we achieve four million. Probably it's a good proxy to think that it's not a linear one million per year, but there is a plan to go to four million. We come a little bit back on that at this CMD in about one month's time. We talk about the expectation and the volumes that is our midterm target across all the factories in Passenger Car Tyres as well as in Heavy Tyres. Great, thanks. I hear you. That was all from my side. Thank you. Our next question comes from the line of Edoardo Spignoli of HSBC. Please go ahead, your line is open. Good afternoon. Thanks for taking my two questions. The first is on production versus sales. I think you're producing at elevated rates now, almost flat out, I understand, but also selling very high volumes. Can you comment on whether the production levels were adequate to the sales? Do you expect to keep producing at very high levels for the second half of the year? A bit of commentary on that would be great. Inventory levels for the Passenger Car Tyres. The second question is on the raw materials. I think it would be very interesting to understand how you think about the current inflationary environment. For demand, if there is any positive impact on Russia per se, but also secondly, given your growth strategy for volume, are you happy that there is a raw material inflation that help you in being more opportunistic to push the volumes that you want? Thank you very much. First question was about the production and running at elevated rates. Obviously when we went into this year, the recovery was quite strong, therefore we increased the capacity and the run rates of the factories very quickly. Also added shifts in Dayton and in Nokia, some of those benefits will come in the second half. We are running essentially at the full utilization of the available capacity. We expect that to continue till the end of the year, we will see how 2022 and the pre-orders for 2022 will happen. At this point of time, the added capacity, added volumes are needed and we'll go with the plans to see how much more capacity we can add. We are well loaded or fully loaded if you want. Heavy Tyres, the same story. Can you repeat the second question? Yes. The second question is on the raw materials. I think that the raw material price is growing. I wanted to ask if you see any benefit in Russian demand, if there is any good oil price support to Russian demand, but also on the strategy, because you want to grow volume very much, is it helpful for you that raw material prices are growing? Because competitors are increasing the pricing. I just wanted to ask if internally you are happier that the raw material prices are going up. Would it be better for you that the raw material prices were going down? If I give you the rule of the thumb in the industry that has been presented, when the raw material prices have been going up, it has been beneficial for the whole industry. If this rule of thumb still applies, this is a good situation for us and for the industry. I believe that the price increases are being executed in the industry, not only by us, but also by competition. You've certainly seen that commentary from the competition as well as from us, that the price increases in the inflationary cost environment are important and necessary. Okay, thank you. This is not a problem for the volume growth, maybe even almost, I don't know if it's better for the volume growth, but the raw material pricing, is it a problem for volume? Not at this point of time because the matter is mostly availability, that how can we make enough tires to meet the demand. Thank you. Thank you. We currently have one further question left on the Q&A queue. Just as a reminder to participants, if you do wish to ask a question, please dial zero one on your telephone keypads now. That question comes from the line of Pierre Quemener of Stifel. Please go ahead, your line is open. Yes, good afternoon. Pierre Quemener, Stifel. Thanks for taking my question. Just one left from me regarding your spending, that have been quite low in the first half in the cash flow. We had a CapEx of EUR 39 million. Is it a new normal, or shall we expect a catch-up this second half and in next year? Thank you. The capital outlay at this point of time is, in the early part of the year, clearly below what we spent in 2020. Obviously, 2020 included some of the major plans that were in the execution at that time. The new normal is below 2020 full year levels, EUR 150 million. Most of our capital expenditure at this point of time goes into new molds and productivity improvements and such, then also increasing the capacity in Dayton. We believe that in round numbers, we will be below that EUR 150 million in years to come. There may be some year where they might be higher, on a macro level, EUR 150 million or below will be enough for us to maintain the growth momentum and to achieve our ambitions. We'll come back to that also at the CMD, but basically, on the background of that is that major investments have taken place in the past two years, three years, and that it's time to get the benefit out of those, and therefore, the capital requirements immediately in the major plans will be limited. However, there will be, of course, productivity equipment here and there, and especially the new product-related mold investments that will take place every year. Okay. Thank you, Jukka. Just to follow up on that one, should we expect CapEx to be above the triple digit threshold this year, above EUR 100 million? Right? Yeah, we think that when we went into the year, we anticipated somewhere in the EUR 120 million-EUR 130 million level. Many thanks. Helpful. Thank you. As there are no further questions in the queue at this time, I'll hand back to our speakers for the closing comments. If there are no additional comments, it's time to finish the call. As Jukka Moisio mentioned earlier, the next event will be our Capital Markets Day on the ninth of September, where we will focus on Nokian Tyres' midterm growth ambitions. The CMD will be an online event. You will find more information about the event on the release, which we published earlier today, as well as on our website. This ends today's conference call. Thank you for participating. Have a good day. Thank you. Thank you.