Good afternoon, welcome to Uponor Corporation's half-year result briefing 2021. My name is Jyri Luomakoski. I'm the President and CEO of Uponor, and with me in the studio, I have Minna Yrjönmäki, our CFO. She will be soon in the front going through the financials. We had a strong second quarter, especially in our Building Solutions divisions. We had organic net sales growth in excess of 30%, and our comparable operating profit was up even a bit more, 33%. Both Building Solutions divisions improved both their net sales and Uponor Infra segment. Uponor Infra, the net sales did increase while operating profit decreased slightly. When we compare the track record and especially the historically high EUR 353 million of quarterly net sales, we see, of course, the seasonal pattern. First quarter and fourth quarter tend to be the smallest ones in the year. Second and third quarter are the big ones, in line with the construction seasons in geographies where Uponor operates. On the right-hand side where we have the comparable operating profit, the dotted line describes our rolling full quarter comparable OP margin, obviously. Profit numbers up from historical or prior quarters. The margin has continued to expand nicely. Where does the growth come from? When we look at the quarter itself, we had, of our top 10 national markets, all of them, with the exception of the Netherlands, growing. The total growth on the group, which is the one with currency impact and the reported one, 27.5%. Also, you see a few outliers. Obviously, the Netherlands, as I mentioned, was the only with the negative change. We had a very strong Q1 in the Netherlands, and now based on that performance and maybe some stocking that took place in the distribution channel in the first quarter, a weaker number. Canada, again, we have a huge change versus prior year. We need to remember that in North America, Canada was the place where with the outbreak of the pandemic, rather significant changes and lockdowns also impacting the construction sector took place. The comparison are soft. At the same time, we've seen some of our competitors having not been able to even serve the Canadian market, and that has given also us good opportunities to grow locally. Looking briefly at our three divisions. Building Solutions – Europe, we saw a good progress in demand, obviously, with softer comparison numbers, but across the board. It was not only those typically South European markets which suffered from the lockdowns back in 2020, but throughout the geographies and also throughout product groups we serve. Construction has been active, and we've been successful in tapping to those opportunities. With higher volumes pricing, we have had in some geographies already two rounds of price increases following the raw material cost escalation. The Operational Excellence Program we launched back in late 2019, actually, has been focusing a lot into the BLD Europe segment or division, and we also see benefits out of that also supporting the financial performance of the division. North America, we have had continued on the strong ride over there. The rolling margin expansion has continued, and both the US and Canadian markets have been supportive. Commercial markets for commercial construction, that demand took some hits last year, but we've seen a clear pickup in that, and that has been, as you might recall, one of the key contributors to our success and growth above the growth of housing starts over the last years. Again, volumes, pricing, and strong operational performance. Seeing the team have made new records in output production. We have continued to expand our production capacity with incremental investments into production lines, commissioning those. Excellent job done in North America, too. Uponor Infra, we do see a small downward trend in the rolling OP margin. In monetary terms, we are quite close to prior year number. Demand has been good, so sales development has been positive. What's also nice to see that design solution sales, which relates to tailor-made engineered projects, which took a hit with the pandemic last year, pick-up is clearly visible, especially in Norway with some bigger projects over there. Infra is the division with the highest exposure in relative terms to raw materials. It is plastic heavy, and passing on this has been happening, has happened in H1, it continues to happen, but this is margin dilutive and has been now in the first half also hitting in a reasonable manner the profit number. The Operational Excellence Program has proceeded well. Savings in the second quarter of about EUR 3 million, and total generated savings are approximately EUR 15 million. In the quarter, EUR 1.2 million of IACs has been recorded, and since the launch of the program, EUR 13.6 million. In connection with our Q1 reporting, we also upgraded the targets and the schedule of the program. This leads us to the financial statements. Minna, the floor is yours, please. Thank you, Jyri, and good afternoon, everyone. My name is Minna Yrjönmäki, happy to present the financial numbers for the second quarter now of 2021. Starting with the sales, a little bit details on that sales growth. I said very high sales for the quarter. Here we're looking at year-to-date numbers and how that year-to-date growth has, or is consisting of, and we see that North America has been the biggest lever in the sales growth overall, but also Building Solutions – Europe has done a very good growth, and demand has been very nicely, especially now in the second quarter. Similarly, Uponor Infra demand in the second quarter was strong, and thus also contributing EUR 19 million to that year-to-date growth. Here also, EUR 16 million we see from the FX impact. Without the FX impact, the sales growth would've been slightly higher, even at EUR 678 million. On the gross profit, of course, this is an interesting topic how the margins have developed, as we have said that it's going to be tough now. We've seen the input price increases ever since late last year, and this is bringing or giving a constraint or some pressure definitely on the margins. Especially the, well, the margin, of course, the absolute gross profit, of course, still maintaining at a high level with the very good volume and sales for the quarter. The profit margin, gross profit margin then taking a dip in the second quarter as was expected. We see that the price increases, the second round of price increases to be more visible than as we move into the third quarter now. The rolling gross profit margin, however, still maintaining a very fairly good level, slightly down from previous quarter. The gross profit downfall is definitely most visible, let's say, in the Building Solutions segments, as Infra margins were a bit more under pressure already during Q1. On the operating profit bridge, just a few more details on how the year-to-date result now is impacted by these various factors, and then the input cost is clearly a negative, as visible here in that first change column. This was a fairly minor impact still in the first quarter, and now we can see at year-to-date level, it's clearly a significant impact. Of course, then the other changes impacting the gross profit is very strongly, thanks to the very good volumes. That column though also includes the impact from the price increases that we have implemented towards our customers, but also negatively offsetting here is also the other material. There are other component prices that are partly impacting here also. For instance, the higher freight costs, especially coming from North America. We have, and we are maintaining at the same level here is the COVID-19 impact. Since last year, from the second quarter, when the pandemic started to truly impact us. We have seen, of course, these savings in our overhead costs related to the lack of travel and especially sales and marketing related costs. Of course, this impact now as of the second quarter this year is that our comparison already also has the lower level than as of. We keep this at the Q1 level, and from Q2 onwards this year, we'll not separately add on to that as we already have that set in the comparison. OpEx savings from the program, as usually mentioned, the program progressing very well, and we have there a good EUR 7 million in year impact year to date from the program. In the other cost, of course, there's also a negative impact coming from certain overhead costs, especially volume related, so sales commissions, for instance, is also impacting then the higher overhead number. Moving on to the cash flow. Positive cash flow again in the quarter. Rolling four-quarter trend is nicely going up, and we can expect. In the second quarter, we did have some bigger negative cash items from investments mainly and still keeping the operating working capital high. We have seen, though, the inventories then to continue to decrease as the demand is very great. That has been large. That is, of course, also having a rather positive impact on the cash flow at the moment. Investments for the quarter were compared to the second quarter last year, significantly much higher for the quarter, and also the first quarter has been higher. The first half gross investments at EUR 18 million compared to EUR 10 million last year at the same time. Of course, last year was also low due to the pandemic and some restrictions on investments. Now the very good demand has also made it easier also to invest more and ensure that we have capacity to fulfill that demand. These investments now start to be visible this year. We do expect the investments to continue on a higher level than last year. Overall, the net cash position, actually our net bearing liabilities this quarter has now turned into a net cash position. We were at net EUR 5 million cash at the end of the quarter, which of course is also a very strong message and a good situation compared to a year ago. We have generated cash very consistently. Of course, first quarter typically, and we saw the increase in the first quarter, but now into the second quarter already then turning clearly a positive and strong cash flow. Negative, end of the quarter gearing at -1, and then the average gearing across quarters is at 7.5%. Clearly, of course, below our financial target range, as it has already been for some time as well. Good. Thank you. That's a brief look into the financials and back to Jyri for the outlook. Thank you. Thank you, Minna. As we know, mid of the year, we have at least some visibility into the main construction season. Obviously, we are still in the midst of a pandemic, where maybe some of the old wisdoms might not all apply, but we do our best in this context. When we look at the U.S. market, which is clearly the largest national market for Uponor, the residential demand has continued strong and is expected to continue strong. Latest housing starts from last week were strong. Similarly, the building permits have been on a very good level. Current consensus forecast, as I read it, for this year's housing starts is 1.59 million, and it's just a tick shy of that number for the coming year. Residential spending has been very strong. We've seen a scarcity of many construction materials. We've seen cost inflation not only for plastic resins, but many things, starting from lumber, windows, et cetera. The home builder confidence is healthy. Still they have very positive expectations for the market. As I mentioned earlier, in the context of the divisional go-through of the second quarter performance, ABI, the Architecture Billings Index is at a near all-time high number. It took, and that's the red line, I believe, here in our graph, and it took a deep dive. Sorry, it's the blue line, a deep dive when the pandemic hit. There was kind of a wait and see for bigger construction projects. It seems that confidence has returned. The architects are busy, which we, of course, deem as a positive sign what is happening on the commercial construction side. In Germany, shortages of material, they are limiting construction activity. When we look at permits, we don't get starts numbers for the German market, but residential permits they are up for the year. Builder confidence has been on an increase, but still below the pre-pandemic levels. Price rises, so the general business magazines also are quoting what is happening, whether it's, again, lumber, whether it's plastic pipes, et cetera. Those moves are also visible in the marketplace. In the Finnish market, we see growth in the residential segment while other segments are somewhat flatter. Builder confidence has improved during this year. That's the black line on the chart. We are seeing also construction companies' turnover improving from last year. Finally, of these markets, the Swedish market, certainly the residential building is the one where we see starts rising building permits are trending upwards and a significant strengthening in the builder confidence. When we try to put all of this into our weather map, as I call it, we've seen for the North American residential market clear growth, an upgrade in the Nordics for residential to growth on the Iberian Peninsula, Southwest Europe, both residential and non-res growing. While non-res in North America, Central Europe, and Nordics are rather on the big picture still slowing. Quite stable picture for the infrastructure business where we operate in the Nordic countries, Baltics and Poland essentially as geographies. We updated on the 11th of June our guidance statement. Excluding the impact of currencies, Uponor expects net sales and comparable operating profit to increase from year 2020 and with the footnote of with increase in this context we mean a growth of 2.5% or more. That was repeated also in our half-year report. Now it's time to move to the Q&A, and we have several questions here received. The first one's coming from Anssi Kiviniemi at SEB. Here the first question is strong 30% organic growth in Q2. Do you have any visibility? Is there restocking impact here or buying ahead of announced price increases as July momentum remains similar to Q2? Again, we don't have visibility into distributors' inventory levels. We don't have any anecdotal evidence even of any restocking. When you look at this, maybe even overheated from a price perspective and very solid demand picture in the end markets, that's conceptually not supportive of restocking as such. Historically, we know that when we announce price increases, if there is from space and in some cases capital perspective opportunities for the distributors, they tend to do some buying ahead. That's historical experience. Again, confirmed audit trail evidence does not exist. On the July momentum, July has started. We are now moving towards the end of the month. What we know about the demand picture in the month of July, it's supporting and confirming our plans and expectations for the full year, which we have communicated in our guidance. Also from Anssi, do you think similar growth momentum will continue in H1? I think he means H2. Obviously, we had the pandemic hit Q2 2020 as a comparison quarter, and then some catch up after the first-round lockdowns were over. From that perspective, it's very difficult with that type of abnormal comparison, historical comparison base to draw any conclusions except those we have utilized in formulating our guidance statement, which I understand is not necessarily super helpful then for analysts making their projections. Last question from Anssi. You indicate that you can mitigate the input cost pressure with price increases fully or partly. Should we expect gross margin to remain at Q2 levels in H2? Well, first on the gross margin question, we do not guide specific line item six, the net sales and the comparable operating profit. Obviously, our aim is always to compensate at least in monetary terms for the increase in cost. Mathematically, that can be diluted to the margin, we know, but not to the profit. Markku Moilanen from OP, "You have strong cash position at the moment. Are we going to see some growth investments M&A in the near future?" Then Markku has another question. "Your gross margin came down 4 percentage points from Q1. Is the current level what we should expect going forward, or does it include some items that are not sustainable in the long run? I think those are questions Minna is also at least similarly well-positioned to answer. Certainly. Yes. Thanks. Yeah. On the investments, well, as mentioned, we have seen more growth-related investments this year, clearly, than what we saw, especially last year, but maybe also in the couple of years preceding. Especially the high demand, North America is clearly something that we are making sure that we can respond to and as visible already in the quarterly number then, and as said, we do expect that those growth investments will continue and that the investments this year, although not guiding a number there, but overall expect that the investments to be higher this year than last year. I guess that's still fair to say as we are clearly above last year level at this point as well. North America, as said, is the driver, but we do see investments also into growth and capacity also in Europe. Yeah, definitely the gross margin downfall was quite strong in the quarter, as said. As Jyri commented, what we also commented in the release is that the price increases have now been implemented, and that's something that should have or that we hope and expect to have some kind of an impact into maybe normalizing the gross profit level, not indicating any sort of further details on that. Thank you, Minna. We have a question from Matias Rautiomaa at Danske. "In some years, revenue is higher in Q3 versus Q2, and in some years it is vice versa. How would you analyze the elements determining the seasonality this year?" Very difficult as such. We addressed in the earlier answers to the first questions, there might have been some pre-buying ahead of price increases in the early Q3. That could be potentially one element as such, but other structural elements, I don't think are really on the table that would help me helping you in this context. Svante Krokfors from Nordea, "You made an impairment charge on Phyn, how it is performing operationally? How big negative contribution to net earnings should we expect? As we have reported over the quarters and over the years in the associated company, share of associated company results, it's been negative every quarter. Now we also, as a consequence of us basically exiting already during last year, the direct distribution of Phyn products or the active distribution in North America in favor of the electronics retail, i.e. a channel basically managed by our partner and Phyn itself. Looking at the rather slow pickup, even though good endorsements by leading property and casualty insurance companies in several European markets, but still very slow progress. We took a view on the value in our balance sheet, obviously. Most of our investment has been basically depleted by booking this loss of the associated company. From that perspective, that was also taking steps ahead of the future and not seeing hopefully this type of or this level of negative contributions to net earnings in the long term. Continuing from Svante, "Could you describe the raw material bottlenecks, how wide or only in selected materials, et cetera? How do you prepare for that?" Pretty much throughout our geographies, obviously one phenomenon or event that changed a bit the dynamics for a reasonably long time was the Texas winter storms taking a big part of North American petrochemical and especially resin, monomer and polymer capacity offline, and then catching up with those effects. At the same time, major export markets from the U.S., including China, had been picking up well and demand had increased. That is something that catch-up has been taking place on all geographies still. We operate well, we get the raw materials conceptually that we need, sometimes a bit delayed. Not necessarily the case for all participants in the marketplace. We can see this on pretty much all relevant plastic grades Uponor uses and also for some metals. How do we prepare for that? The other part of the question, obviously a key topic here is long-term close relationships with our key strategic suppliers and kind of keeping our name, even though it's not first in the alphabet with you, but it's still something that is up on our partners' mind when they have to make difficult decisions who get served first. A question from Markku Moilanen, OP. "What are your future plans regarding Phyn?" I think in connection with the question. Question from Svante, I addressed that relevantly. Matias Rautiomaa, Danske. Do you see anything exceptional Uponor Infra's growth in Q2, and do you see chances of this kind of trend to continue, and what are the drivers? Minna, do you want to address this one and Tommi's one? Okay, thanks. We were, as I said, very happy with the good growth in Infra as well. Although they have clearly a strong battle with the raw materials, the growth, of course, there's some also coming through the higher prices from the raw materials. We do see that there's a nice uptick in the design solution sales, but also in the standard stock sales to the wholesalers. Overall, I think that we've seen in the main markets and in the Nordics, it's been a nice growth and do expect that to hope to see that trend continuing. I think that the design solutions is one area that is helping them overall and that has been again, a better year. Last year was quite a struggle with those projects. We have a question from Tommi Ilves. What kind of price increases have you already implemented? What's the magnitude of the price increases in the third quarter? As I said, we had our regular sort of price increase rounds in the building solutions divisions, especially in the early part of the year. Since the input prices continued to increase quite steadily and strongly during the winter and spring, there has been a second round of price increases that is currently still becoming sort of effective either sort of June, July, August in this timeframe. Clearly this is kind of the second round of increases, of course, not across the board, but as we are trying to get these implemented, and as commented, we'll expect to mitigate the input cost increases through that, then this should help in the margins. Yeah, I think the magnitude, of course, it's a wide question and a wide variety also in that. It is definitely sort of related to the raw material price increases that we are trying to then cover. Okay. Now. Thank you, Minna. There is 1 more question from Matias Rautiomaa, Danske Bank. "In a bigger picture, what kind of EBIT margin level do you see Uponor should be able to do in the long term?" Difficult to judge. Obviously, Uponor has long-term financial targets where the target is that the EBIT margin is in excess of 10%, and that's, of course, what the company always needs to strive to reach its long-term targets. We have demonstrated that the company can do better, and time will then show if those targets will be revisited or reviewed by the board of directors of the company. From that perspective, at this stage, I can't unfortunately help you any more in that type of a longer term view. My screen is now empty of questions, which means that it concludes the Q&A session and starts to conclude our webcast on the Uponor H1 result briefing. This is also the context where with the help of all the Uponorians on my shy of 13 years at the helm of the company, we've managed to approximately quadruple the market cap, and it's been a pleasure to be serving also this audience, our financial community as Uponor CEO. The new team, my successor will be then online with the third quarter report in late October. Thank you.