Ladies and gentlemen, welcome to Uponor's first half-year results briefing. My name is Franciska Janzon. I'm from Uponor's Investor Relations. We will start today with a presentation from our CEO, Michael Rauterkus, followed by a financial review from CFO Markus Melkko. After the presentations, we will open up for questions via the teleconference line. With that, I hand it over to Michael. Good afternoon. Also from my side, a warm welcome here from the Helsinki studio. I'm here in the studio with Franciska and Markus Melkko, our CFO. I'm very happy today to share with you the results. We always say people first and safety first. Let's why not starting with this data point. We also made really progress on the safety side last year. We could reduce the LTIF by 36%, and this year by another 23% so far. It's still not good enough. Zero accidents is our target. By the way, in U.S. we are already at this level, so it is possible, and I think we are really on a good path. It's our main focus at every single meeting, so therefore, also at this session. Let's now talk about the numbers we have shared with you already this morning. The Q2 is really about a very strong performance and therefore H1 result reached a new high for Uponor Corporation. I'm really proud, and I want to say a big thank you to all the Uponorians who have contributed to this. Q2 net sales grew 12.1%, double digit, to EUR 396.2 million, and the comparable operating profit grew by 4.8% to EUR 50.5 million. H1 grew also 12.6%. The half year result is EUR 745.7 million. Operating profit close to EUR 100 million, so exactly EUR 97.7 million, which is a 2.1% growth. Let's not forget this amount, I mean, this level of operating profit our company achieved in the year 2016, 2017, 2018, 2019, we were about EUR 95 million-EUR 99 million OP, and this is what we have achieved in the first half this year. I think it's really a strong performance. What are the highlights? As we announced the strategy in the last Capital Markets Day, the strategy execution progressed as planned. And we have done some changes in the organization. Our new President of Building Solutions actually started this year, this week on Monday, and he has been appointed last quarter. We also appointed yesterday the new Chief Technology Officer, Thomas Fuhr, come to him a bit in detail later. also, a bit of important news, the Russia operations has been reclassified as assets held for sale, and Markus will explain a little bit later how this affects our numbers. Let's go a little bit into the specifics. The group net sales, as I said, grew 12%. Organic growth was ten percent. What has been the main driver and the main focus? We really focused on executing on pricing. This was our main focus. We had basically two objectives the last quarter, getting the pass on pricing, and also improve our service, our service levels, our OTIF, and I think we are really on a good level. Currency movements have had also a very positive impact, and the group comparable operating profit grew by 5%. Again here, pricing actions had a very positive impact. The comparable operating margin ended up at 12.7%. You remember we had the 12% as the benchmark for the year. Most important, despite all the challenges we face and the market face, the guidance statement for this year stays unchanged. Let's go a little bit into the detail. You see here the H1 net sales results, and we have reached, as I said, an all-time high for the first half, EUR 746 million. It's really a nice development since 2019, as you see. We could really hold the line on the operating profits, as I said, close to EUR 100 million here. I think that's a really, really good result given the headwinds the company was facing. When I go a little bit into the details and the specifics of the market, you see this yellow line here is 12.6% growth. Basically all the markets have been in growth, starting with the US. Of course, we have a currency effect in here. Also take Germany, and everybody now talks about Germany and the headwinds Germany has, but so we grew here 7%, which is, I think, very good. Finland, I'm proud of. This was also a market where the expectation were a little bit lower from an economics, but it's growing. It grew double-digit, as well as Sweden. Holland had a really strong second quarter and therefore also a strong start in the first half with over 22%. Canada 6%, Denmark 7.6%. Hey, what happened in Poland? You remember the Capricorn integration is now in full force. You can count half of this growth of 50.7% comes from Capricorn, but the other half comes organically, and I think that's great and strong performance too. Spain grew also double-digit as well as a market like Austria with 27.7%, which is really remarkable. All the other markets grew 19%. All in all, really strong performance across the board in our markets. Looking a bit by division, yes, we had another really record sale in Europe. Europe more and more contributes to the overall results of the company. Net sales grew 18%, organically 12%, so again, double digit. Of course, Capricorn was a key driver. The comparable operating profit increased also double digit. Here, clearly pricing actions came to fruition. Also we made progress on the Russian operation side, and Markus will talk about this a bit later. Our aim is to find a solution with local ownership, and we are in the process here. Of course, this is not just dependent on us. This case has been now filed, and we are waiting for the administration for approval. North America. North America has done a really good performance. Net sales grew 6%. In US dollar terms, it declined by 7%. Remember last year was an exceptionally strong quarter, especially for United States. What we see here this year, we have a few customers in US who have the capacity and capability to get large inventories if needed. Last year, of course, the whole industry was really short of product. What we now see as our service level improve and our OTIF levels have really improved as well. Within 10 days, basically, we can now ship everything the customer is ordering. This is how it has been all the time. Of course, now the customers can start to lower a bit the inventory, and we have seen a significant impact, which I call healthy, in the second quarter. With this side information here, I must say I'm really proud of the Americas' performance. The operating profit increased by 1%. We have a very good team. They really looked at operating profit, productivity, and pricing in the U.S. This resulted in a very good result. Let's look at Infra. Infra, I think I'm really proud of because, you know, last year or the last quarters, we were always talking about pricing and availability issues, etc., from our suppliers. Of course, the Infra business is probably most vulnerable, as you know, to any raw material price effect. I think they have done almost best here. The net sales grew 11%, and the operating profit went up 13%. I think there's an excellent execution on the Infra side. This was our summary chart that we used at the Capital Markets Day, and we have really a robust strategic and action plan to deliver performance. What we really focus now is we improve the resilience of our business model in all the three divisions, in Europe, in Americas, in Infra. I'm very happy we announced a few months ago the maximizing the core strategy. I will, every time we are talking about this, explain a little bit what's really behind a bit more in detail. Again, also we will share today a bit of innovation because maximizing the core is one stream. The other stream is really driving innovation. We lead the industry really towards net zero. We saw the other day a report from one of the analyst companies, and we are really in the top-rated companies in the whole industry when it comes to CO2 emissions versus our net sales. That's very good. Of course, last but not least, we have really a people first mindset. This is always something we really focus on because the people, the Uponorians, or how they call this in the US, the Blue Crew, makes really a difference. What is the strategy execution about? Maximizing the core means now we really focus on what we have. We focus on markets with high potential, where we see the growth opportunities of cross-selling, and where we can sell integrated system for the entire building. I come to this a bit more in detail in a minute. We also identify new savings. I mean, while we look on growth, at the same time last year, we had this OpEx program, and again, we have started a program through procurement and look at improvement. It's a steady process which never ends, and we have started a new program here looking in procurement savings. At the same time, we accelerate the R&D initiatives, and of course, with the announcement of Thomas Fuhr, we will get much more impact, I think in the future on R&D and innovation, which I would call push innovation, while the other is more demand innovation coming from the markets. Clearly we continue while you have a better feeling that sustainability is not as important anymore, it's not so much in the news anymore, we continue our path in taking steps to the sustainability journey, and we will continue new product launches because I think the overall, let's say, call it energy crisis, will even strengthen our position and sustainability topics will be back soon, probably more than ever. What is maximizing the core about? We have here a nice map of the world and the markets we are in with the net sales per capita in 2021. No surprise, clearly in our home markets, in the Nordics, in Helsinki, we have the highest consumption per capita. You see also markets like here, Holland and Austria, where we really see high market shares. We have, let's say, a middle segment, which is Germany and Poland and also the Americas. The Americas also have still a lot of potential. We have another range of Spain. In Spain, we did in the past more than EUR 100 million, and we are in a process of having a new plan for Spain to get back to these heights of the past. We will also focus on two markets where we are currently underscoring, which is France and the UK. While Europe, and I saw some of the comments of you, of the analysts, Europe is scattered. Yes, we have to manage a lot of markets, so this is why we have done specific and developed specific sub-strategies for each of the segments. We will not focus on all, but we will focus on few where we really can make a difference. In these markets, I've talked to the leaders there, we have really great teams in place, and I have all the confidence, and they are really hungry and have appetite to grow and then improve our market position, and they get this maximizing the core big time. The other example I wanted to share a bit is here. What does maximizing the core really mean? While everybody now can focus on how the future looks like, the interest rates and how housing starts and so on and so forth, all these factors we can't influence. It's a bit like the weather forecast we look at, and probably I think you, the analysts, you are better in forecasting the external factors than we are, but we can focus on what we can really impact. One of the things is really increase the check size or increase the share of wallet. It's a huge difference, and this is an example just from Germany. I could share many others. It makes a hell of a difference if we sell only pipes in one house. In this example here, the Uponor Uni Pipe PLUS system and Uponor S-Press PLUS, and walk away. Or we sell the Uponor Combi Port on top, or we sell on top the Uponor Motion to have the flushing unit to make really sure the water is always in excellent quality. Or we add on, what we also launched last year, Uponor INOX, the stainless steel riser pipes, because customers say, "You know, this is a super brand. Why don't you offer us the full solution?" The difference on selling you know, just the pipes or selling the whole system is one to eight. One to eight makes a difference. The impact for us of maximizing core and really looking at selling the whole systems is probably for us more relevant than the little bit of a fluctuation of some external factors. I think this is something we really focus on. Maximizing the core is so important. The next thing is we will continue on innovation. Also the last time Infra was at the forefront of innovation when it comes to IQ Blue, and we continue. Remember at the ESG part of the CMD presentation, we committed to have for 50% of our portfolio a sustainable alternative. We move on, and this is Uponor IQ Blue, and it's a new generation of stormwater pipes reducing the carbon footprint by 70%. I think that's big. 70%, and it's a whole range, a whole portfolio, and we move on. It's an innovation highlight of this month, and we keep on the sustainability journey. What I mentioned before is also we had a change in the leadership team, and I'm really happy that Andres Caballero joined us this week as an ExCo member leading the North America business. He is really an experienced leader, not only has led really big corporations like, you know, Honeywell. He led a division. He knows the industry from Danfoss. He also started some own business, so he is an entrepreneur spirit. He's a great guy, and I'm really happy he has joined us for North America. First of October, an old colleague of mine, Thomas Fuhr, I worked with him about six years. He will join the executive committee as a new Chief Technology Officer. His DNA is not so much grower. His DNA is the automotive industry. He has worked at Mercedes-Benz and McLaren for about 20 years, so he knows really, I wouldn't say everything, but he knows a lot about manufacturing, supply chain, innovation, and knows is really somebody the organization in Europe and worldwide will enjoy working with. I'm really looking forward, I'm very happy to have both of them on board. With the changes we have made now in the executive team, starting with Markus, CFO, Jennifer for HR, Andres now for US, and Thomas, I think we have really built a world-class team. What does this mean now? What does new technology really mean as an organization for Uponor? To be very honest, when we started, in talking about this, I thought, "We need to have the new technology officer to drive innovation." Now, when I really think, yes, innovation is key, but there are other factors now even more important than in the past, like manufacturing resilience of supply chain, availability issues. I mean, it's very important to have somebody with this experience on board, and I'm very happy now we have a world-class team who can manage these challenges ahead of us. The new technology organization will lead on innovation sustainability. It will provide operational support for the Building Solutions Europe division, so direct line in Europe, dotted line U.S., and Infra is running as it is. Of course, it will drive cross-divisional collaboration. We are a manufacturing company, and now we have an ExCo member who understands manufacturing. It's as simple as it is. The new leadership structure in Europe will change a little bit. I will not replace the president, but we will soon announce a senior vice president of Building Solutions – Europe, and he or she will focus on marketing and sales. This allows the whole organization to come a little bit closer to our customers. As you saw before, I mean, the new setup or the new focus on certain markets so important as it is on key customers. What are the key operational focus areas in the second half? The plan is very good, and it's good not short-term, mid-term, it's also very good long-term. While we know there are a few headwinds ahead of us, the plan will not change. Every quarter, every half, there's a little bit of a refocus. The focus for the second half is resilience. We have to monitor risks related to energy and raw material supply. This is not a surprise to you. Reliability. We continue to have a challenging supply chain environment. It has calmed down a bit, so it has improved a bit. Of course, this is just the experience of the last few weeks. We need to make sure resilience and reliability is top priority. Again, we need to improve our productivity, as we have done in the first half, in order to redistribute the funds and invest more in R&D and A&P. What I love to do is really focus on people, coaching, and refining the new technology, and building European organizational models. With these comments, I would like to hand over to my colleague, Markus Melkko. Thank you. Good afternoon, ladies and gentlemen. My name is Markus Melkko. I'm the Chief Financial Officer of Uponor Group. Thank you, Michael, for the introduction into our Q2 numbers. I will now walk us through a bit more into the financial details of the Quarter two and the first half numbers. If we start with some variations on the net sales and the operating profit, it's important to understand the net sales growth, as Michael pointed to, comes now from all of the divisions. I think we are all very proud of the performance of the teams in each of the divisions. Especially proud, we are also obviously on the operating profit development that we have seen during the first half. In the lower left-hand side bridge, we illustrate basically the net impact of the pricing actions. On the input costs, I mean, we have a number of elements that go in a bit different directions, starting from the raw materials and then in a way stabilizing those or like-for-like basis on the mixed basis. We have obviously inflation pressures on other conversion costs as well as overheads as well. I think we are very proud of the teams' efforts on not only the pricing part, but especially also on the production and supply chain colleagues' efforts on really making sure that we get the materials, raw materials in, that we manage the cost pressures also with the suppliers, and then that we are able to deliver to our customers on a sort of improved service levels now towards the end of Q2. If you look at that bottom chart there, the blue part there is the key element. It illustrates to you that the impact of the net pricing impact reduced from the sort of cost pressures coming from not only from the raw materials, but also from the other elements as well. Then the other part is an illustration of the overhead development as well as the movements and then in other operating expenses and incomes. When we talk about the overheads, it's worthwhile noting basically three things. The first one is you know kind of the obvious one, that the comparison period still carried I mean Q2 in first half 2021 carried these COVID restrictions, be it then company internal or then national in the countries where we operate. The second element now that we can see is that we've also now in a way increased the activity on certain functional areas deliberately just to drive our strategy. For example, a bit more investment in R&D and bit more investment already in sales and marketing. Then the third element is that we've also invested more on sort of, say, on individual basis to develop our strategy and to fine-tune our operating model now going into the second half of this year. Finally, on this slide, I'd like to highlight. It's not highlighted there on the text side, but like Michael pointed out, if you have the moment to study our interim release for the Q2 and first half, please note that the items affecting comparability do include indeed this EUR 6.2 million write-down that Michael highlighted in connection with our Russian operations being reclassified as an asset held for sale. Hopefully we have, in a way, some progress there soon, but as you probably are aware of in the modern and current day and age, it's also subject to certain local approvals before we can, in a way, finally conclude any sort of final decisions on the Russian operations. Like Michael pointed out, we're looking for a final outcome that is to the benefit of obviously to our Uponor colleagues as well as then the local customers. Moving forward to gross profit development, I'm happy to report that during Q2 2022 we managed to increase our comparable gross profit margin, so it's an indication of the successful pricing measures as well as successful supply actions that we've taken. The four-quarter rolling comparable gross profit margin is also then gradually now turning upwards. You probably remember from the previous quarterly releases that we were still in a way seeing a bit more downward trend on the rolling gross profit margin, but now we are going in the right direction. Something that we'll obviously stay focused on also in the quarters to come. Moving over to our operational program that was launched late 2019 at the end of first half this year, it came to an end with a savings goal being reached at EUR 24 million. That corresponds then with an overall cumulative Items Affecting Comparability of some EUR 90 million. During the first half, some EUR 1.7 million of items affecting comparability are booked in our P&L, and the rest in the IACs during first half are related to the Russian operations net asset write-down. Moving over to cash flow, during the first half of this year, meaning Q1 and Q2, we saw lower operating cash flow than we saw a year ago. The reason is quite simple. The net working capital increased, and the net working capital specifically increased in our inventories. It's mainly driven by the higher cost base that we are up against. In certain, say, geographies and product segments, we also try to perhaps a bit more normalize the inventory levels compared to the rather low levels of last year. From the investment cash flow from investment perspective, includes the first installment of our dividends. Then on the investment part, cash flow from financing included the first installment of the dividends obviously, and then on the investments, slightly higher investment level versus 2021, but again, I think it was quite low during the previous years. The key investment areas were related to the regular maintenance, efficiency improvements, but also a certain amount of capacity expansions that we are in a way implementing, especially in the North American division. If we look at the balance sheet from another perspective, obviously the flip side of the coin is that the net interest-bearing liabilities are now higher than last year, but still the gearing is well below our financial target levels. The gearing corridor that we've set ourselves in our long-term financial goals is 40%-80%, and at the end of Q2, we were at 15%, so clearly below. Then the four-quarter rolling gearing is at 8%, whereas a year ago, it was at 7.5%. There's no change in the financing position of the group, so basically, the same long-term loans as at the year-end, as well as then no short-term financing used during the quarter and in use at the end of Q2. Before we move forward from the balance sheet elements, there are two more sort of data points that I'd like to highlight just as a teaser also to sort of into the longer interim release perspective. The equity ratio or solvency stood at 49% at the end of Q2, a very solid balance sheet from that perspective. Our return on investment, excluding the Items Affecting Comparability stood at 32.5% at end of Q2. I'm really proud of those efficiency figures. Earnings per share at EUR 0.34 per share, as opposed to EUR 0.32 a year before, and the H1 was EUR 0.79 per share. There you need to bear in mind that these are the sort of official reported numbers, so it does include obviously the impact of the net asset write down from Russia. Like I already noted, the first dividend installment was paid in March, and in accordance with the annual general meeting's decision, the board is likely to decide then in their meeting in September on the second installment of the dividend. Financial targets, just to build the bridge back to the CMD that we had in March. Hopefully you remember those ones that participated in the CMD, that we actually deliberately set kind of two-stage financial targets for ourselves. The first one for this year and the two years to come. Obviously under these circumstances, it remains to be seen how the world develops, but at least for the first half of this year, I think we can be proud of our organic growth of 9.9%. Then the comparable operating profit stood at 13.1%, whereas we said that we want to hold the line of 12%, and we are sticking to that long-term target also going forward. Like I mentioned, gearing well below the targets. With these words, I would like to hand over back to Michael and discussion on the outlook for this year. Thank you very much, Markus. What about the near future? What I would like to say is really we have a strong plan. I think it's really strong, and thanks because we built this and it's very robust. This is a bit our outlook on one page because there are not only headwinds, and I think you would agree, is more volatility and we will be in a more complex world, in the next quarters to come. There will be volatility in raw materials, in energy component supply. This will stay for a while. Who knows what will happen with the high inflationary pressures. We have pricing under control. Of course, the concern is the interest rates hikes, and they add uncertainty to the demand picture. That's very clear. That's only one side. The other side is there are some tailwinds too, because I think, and we believe the current energy crisis will likely accelerate the transformation towards more energy efficient systems. I think if the people haven't understood this in the past, now, then now they understand. It's very, very hard if the economy minister in Germany says, "We have to save 15%." I don't know how this is possible. I think the solution to this is more energy efficient systems, and of course, Uponor is well-positioned to supply these systems. The other part will be, and which will never stop, is a continuous demand for safe water supply. Let's not forget that's also a very important part of our business. Last but not least, while the world might be a little bit foggy, there are always continued growth in certain segments. If it's certain segments, like say everybody would agree, heat pumps, et cetera, will grow and we will benefit from this. Tick in the box. There will be also some markets still growing like Asia or still growing double-digit like in Eastern Europe. I think what we need to be is very agile, and these are times which are tougher, but at the same time it gives us the opportunity also to gain share. My message is really we stay the course and I think we have proven in the first half we have a very robust plan. In the short term, what does this really mean? Basically, we expect the market condition will be tougher. No surprise. There are some downside risks to the demand outlook. Again, no surprise. Of course, the home market has discussed the monetary policy and impacts over the last few months. No surprise again. Therefore, we keep our guidance statement for 2022, and I think that's good news here. With that and that statement, I'm very, or we are very happy to welcome your questions. Thank you very much. Thank you. Ladies and gentlemen, to ask a question over the telephone, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. A voice prompt on the phone line will indicate when your line is open. Please state your name and company name before asking your question. Again, please press star one to ask a question. We will now take our first question. Please go ahead. The line is open. Yes. Good afternoon, gentlemen. This is Paul De Terry from Arca Advisors. Congratulations on a good set of results. Can I just maybe expand on comments you made on your Capital Markets Day, but look at you've mentioned your markets with high potential, particularly you're focusing on France and the UK as markets to develop and then Spain to get back to previous highs. My question is a twofold. In those markets, how do you intend to say break into the markets in a meaningful way in France and the UK? And secondly, looking at your major market, the US, what do you see as your greatest challenges, and what will the new head of the US Building Solutions be given in terms of to increase penetration into the US? Would it be through new technologies that you're bringing in from Europe into the U.S., but what are the key drivers of building resilience, I suppose, not only in manufacturing but also in sales into that major market? I think it's a very good question. Number one on the European market. Clearly, we have the ones where we are in leading position or number two, but we have also markets where, let's say we have a big potential. I always look at two factors. A, do we have the team in place I trust, and they can execute a plan? Tick in the box. That's clearly the case for France and the UK. We have strong teams there. The European organization has built over the last months or so or quarters, really strong foundation. Secondly, you need to, of course, specifically when you go in markets like UK and France, some adaptations to the product line because not everything is the same everywhere in Europe. We have really built a superior knowledge and have plans in place with our portfolio to address the specifics of the market. We also removed some of the barriers we created ourselves, i.e. in France, where we had a central warehouse in the past, and then we shut it down and had huge service level issues. We now reestablished again one, and all of a sudden service levels are back, and we are growing double-digit. It's sometimes operational issues, but of course more in the long term it is addressing the right portfolio. This is basically Europe. By the way, in Eastern Europe it's just I think sales capacity and not so much product portfolio. In UK and France, we need to adapt a bit. In the U.S., very interesting picture because, as you always point out correctly, we are a bit dependent on the residential market there. We have one market in North America, Canada, where it's actually the other way around 85% is commercial. Of course, we are now looking into ways to expand our portfolio a bit in the United States. It is very human and it's very normal when you grow double-digit all the time with one product line and you just build capacity, it's also tempting just to focus on this. We need to now find a way to continue what we are doing. Let's not forget, PEX-a is still an innovation in some of the markets in the U.S., so it is not something we should lose our focus. The challenge is keep doing what we are doing and then on top, addressing new market segments. This hopefully answering your question. Yeah. Thank you. That's very well explained. Thank you. Just to pick up on a comment you made on Eastern Europe, you say sales capacity is an issue. You talked about labor market tightness, recruitment issues. Can you just very briefly talk about the challenges of recruiting in this sector? Yeah. Put any figures on them. At the end of the day, I mean, we face the challenge like every company. It's really the bottleneck is always skilled labor. This is also the reason or one of the reasons why we put people first. Only the, let's say, strong brands, strong companies with a clear purpose, vision, mission will be able to attract people in the future. It's easy to get people. It's very tough to get the right people. We put a lot of effort now in expanding our sales network, i.e., in Eastern Europe. We are on a really good path. Brilliant. Many thanks for answering my question. Thank you. We'll now take our next question. Please go ahead. The line is now open. Good afternoon. Svante Krokfors from SEB. A couple of questions. First one regarding your guidance. You keep it intact and given that your EBIT in H1 was slightly up from last year it basically implies that you will increase your EBIT also in H2. Question is how confident are you on that given your not surprisingly your quite negative comments about the short-term outlook given what has happened globally? Thank you. I can take that. Sure. Thank you, Svante, for the question. Obviously like Michael said, we are having a clear course ahead and putting our efforts on implementing on our strategy. Indeed that is the case that, yeah, it means that we need to slightly improve on the previous year numbers. What we can also say that, and you can, everybody can read it from the numbers is that perhaps the Q3 last year wasn't the sort of best performance that we can in a way achieve. Based on our plans, we have in a way confidence that we can beat the last year H2. Okay. Thank you. Could you comment a bit about your visibility and also do you have any comments on distributors' stock levels currently? Yeah, we have. Yeah. Actually on some, not all, but on the very relevant customers we get better and better data visibility on the sell-in and sell-out and inventory levels. As I said, specifically we saw this effect in the US when products are short, then of course all the wholesalers who can suck in more inventory. Of course this now we saw this specifically in the second quarter, this now came to normal levels again, which is very, very healthy. That we come at least in the US now every order is basically going through. Customers don't build inventory anymore because they trust that we have stopped allocation for fittings, for example. The system is calming down and this is also important for another effect. As you all know, I mean, if we get big orders, push the pedal for the factories, that's very costly. Putting then the brakes on is costly again. For us it's much better if the factories run smoothly as possible. For us also with Thomas coming in it's very important that we have a little bit more forward looking and look not just on what we sell in, but what sell out and have more visibility on the whole value and the whole supply chain. Now that's a little bit also a new philosophy. So far what we see is inventory levels have gone down significantly at least of the customers where we had visibility, which is good news. Okay. Thank you. That's very helpful. Question regarding Infra, which posted a good result. What about the price increases there? If I remember correctly, those price increases lag the other divisions quite significantly. Do you still have a kind of pent-up room to increase prices in or the impact to be seen from now on the Infra side? No, the Infra side, I think, you know, the most important thing on the Infra side was not so much now agreeing a new level. It was more important on the Infra side to agree the rhythm of implementation. Because it was some of the customers we could pass on prices. Yeah, I think the most dramatic period was up to nine months, and now let's say the longest period is three months. Every quarter we can adapt prices, and I think that's really good news. Now we are also there in a much more stable path. Whatever happens, we are able within three months to adjust the prices. Of course, at the other side is we still want to be competitive. You see, I mean, now Infra is, they can now focus on selling and not just increasing prices. That's, I think, also good news. The last price increases now we have seen significant price increases have been in the Building Solutions Europe. I think they increased the biggest round for one of the biggest customers was beginning of July. Okay. Thank you. That's all from me. Thank you. We will now take our next question. Please go ahead. Okay. Thank you very much. This is Pam Wu from Morgan Stanley. I have three questions, please. First is on pricing. How do you think about pricing going forward? We're talking about environment where potentially demand will be weaker in the end market, and we have distributors destocking, so it'll be more competitive for manufacturers like yourself to fight for that floor space. Also we have the pace of input cost increase starting to ease. Is there actually any scope for further price increase from here? Or even could the current level of really strong pricing be able to be sustained? Specifically, would you be able to tell us what is the volume and pricing split for Q2 in your key geographies? There's also a passing comment just now with you, Michael, mentioning that inventory coming down at customers is good news. Could you please just explain that a little bit more, why that is the case? Second question is, could you please remind us your revenue exposure between new build and renovation in your key countries, please? That is US, Germany, Finland, and Sweden. Question number three is what is the current, wallet share of Uponor's products in a new build home or in a home renovation project? So what is the incremental wallet share if you are selling a full solution like the one you just described earlier in the presentation? And currently, how much of your sales is full solution sales, and how will we see that percentage evolve over time? Thank you. Very good questions. Big ones. Which one to take from big ones. I think the first one was the pricing, and in a way, how do we see that sustain? Anything you want to share? Yeah, I mean, it's a very good question. I would say we like price increase and pricing power. What we don't like is, of course, if prices have to be corrected. What I also know wholesalers don't like it too because, I mean, they have to devalue their inventory. Everybody has also a little bit of interest to have stability. Of course, the end market also can't cope with price volatility all the time. There is an interest in the market that, you know, there's a bit of stabilization going on. Of course, we monitor this on a monthly, weekly, daily basis. At the moment, I have no indication that, you know, some of the parameters have a significant change. What's important now, Uponor is now in a much better place to react in any way. If, like tomorrow, price increases would jump 20%, our ability to pass on prices is much better than it was a year ago, if this answers your question. On the inventory, your question, Pam, why is inventory reduction at customers a good thing? I think our wholesalers they should be able to deliver a good service, but they don't need to do more. I think if they carry three, four, five months inventory, that's useless. If they come to healthy levels, this also increase our visibility on what the sell-out looks like. At the end of the day, we are only interested in the one thing, the end customer needs to be serviced best. It starts to hurt when projects slow down. That's really bad. Therefore, the wholesalers play an important role to buffer. Therefore, I'm thankful that last year, they really helped us. Now it's our ability to perform better and to deliver within 10 days everything in the US. It's still a way to go in Europe. Of course, there's no need for our customers to carry more inventory than needed. It's also a bit of a trust. They know Uponor offers a good service. Still, I mean, on some of the components I showed you in the picture, it hurts me that some of the components we have, I showed you on the picture, we still have availability issues because the demand is much higher than we could fulfill, and we are still behind. That's something, you know, we have to fix in the day-to-day business, and therefore even more focus on manufacturing. There was the last question on. I think it was on the split of renovation and new build per market. That's something that we haven't openly disclosed. Also Pam, to your question on price versus volume per market also unfortunately something that we haven't disclosed. I think there was something on the share of wallet as to building on the picture that we showed. I can. Let's say on this example I showed you know, you could, the glass is half full or half empty. I would say, it's a lot of opportunities here because let's say this full solution I showed you is less than 10%. If you say 100 of these projects are implemented in Germany, less than 10% get the full package. That's a significant number and also shows that there's huge room for us to perform in existing markets. Therefore, for me, let's say the share of wallet check size, to be honest, is more important than the Ifo index of Germany. Because as long as we have superior product system to customer demands and we can improve, then I think, no excuse not to grow. Okay, that's very helpful, thank you. Just one quick one. I think when you were answering an earlier question, you mentioned there's one particular geography where your revenue exposure is 85% to commercial. I didn't catch the name of that market. Could you please remind me that again? It's Canada. Canada is 85- Thank you. Yeah. Canada is 85 commercial and 15% residential. The good news here is in the North America team, we have the expertise how to do commercial. Actually, some of the innovation we launch for in the commercial market, we test first in Canada before we bring it over to North America, but let's say the R&D is sitting in America, so they co-create something they can later implement in the Americas market. As you know, the market is structured a little bit different. It's a reps market, so, and reps don't like so much commercial projects, so you need to build up your own factory sales force. We know what we are doing. We have a good setup there. Let's say one of the questions before was, "Is there more potential in other segments?" Yes, there is. Of course, we want to make U.S. business a little less dependent on the residential market, clearly. That's really helpful. Thank you very much. That's all my questions. Thank you. Ladies and gentlemen, as a reminder, to ask a question, please press star one on your telephone keypad. We will now take our next question. Please go ahead. Hi, guys. It's Anssi Rantala from SEB. I have a few questions left, and I could start or continue on Svante Krokfors' question regarding your guidance and visibility. Like, do you already have, like, clear visibility on Q4 demand, or how confidently you can speak about H2 this year at this point? Well, I think we are up against yet another complicated quarter like we've been for the past two and a half years. First there was COVID, now we have the war and then the energy crisis. Like I said, I think the key point for us is to stay on our course and we continue to push for our strategy. At the same time, we also continue to push for our sales. I think the key points that Michael said earlier was to stay agile. That's how we in a way look at the world right now and focus on in a way the customer as well as then keeping our efficiency in place. That's why, how we try to, in a way, navigate under these waters. Anything, Michael, that you want to add? You know, look at that also, I mean, to be fair, we have beaten in the first half very strong first half last year. Last year's second half was a bit weaker. That's also part, of course, of the answer. When you look at this quarter, about EUR 50 million OP. Last year, I think the Q3 out of my memory was EUR 38 million, last quarter was EUR 27 million, so 55, let's say 60 in total. From this perspective, from today's perspective, it looks achievable. But at the same time, when you look at the external factors we talked about before we started the session here, the external factors is a little bit like weather forecast. It's not super precise. Of course, let's say if tomorrow Europe is at energy standstill and we have a disaster scenario, this is not what we assume, clearly. I mean, we look at every possibility. We have this procurement program going on, not only looking at cost, but also looking at single sourcing. The whole, let's say, the whole enchilada is going on. We look at everything. From today's perspective, this is really what we believe that we can deliver. Yes. Great. Thanks. I agree that forecasting is difficult. Actually, I was going to ask about Q3 and the sales in North America decreased by, was it 7% in Q2 in USD? You already talked about inventories going down, but should we expect still same kind of decrease in Q3, or how do you see the current demand and comparison quarters? What we have seen, the customers where we have data, they had bottomed out. Okay? Yeah, I can't talk about this quarter, but we saw because the proof point is then when the first biggest or bigger order's coming in again, and this happened. It gives us the confidence that we have, you know, not 100% visibility because customers are always a little bit shy on sharing data, which is still something we need to work on. But the visibility is good enough for us to give this guidance. Yeah. Clear. Thanks. The last one from me is about the US construction market in general. Like, how do you see the overall situation at the moment? Are we above or below the trend? I'm talking about the long-term trend here. How would you place 2021 in the trend line? Of course, talking about that part of the market which is relevant for you. I was about to ask you. Difficult one. I was about to ask you what do you think about the trend, you know? Of course, we also look at the macro data. Are we concerned when we see, of course, you know, some numbers start to get in a, let's say, negative territory? Yes, we are. At the same time, do we have a scenario which would remind us as, you know, when the financial crisis happened, et cetera, et cetera? I think we are in a totally different scenario because, let's say, still the base stock of houses which have to be rebuilt is, I mean, is still low. The, let's say, the overall long-term demand is still, I think, intact. Of course, let's say if interest rates go up and the mortgages get this famous 2-3% interest rate go up and mortgage goes up then 40-50%, then of course in this moment, consumers start to think, "You know what? Do I postpone a bit?" Et cetera. These effects are, I would say, clearly, normal. We watch the scene, clearly, but I think we don't know more than you know. Yeah, I understand that. Thank you. Ladies and gentlemen, at this point of time, we have no further questions. Thank you. Thank you. We thank you very much for your attention today, and we are happy to be back at, with our Q3 numbers on 4th of November. Thank you for today. Thank you very much. Thank you. Goodbye. Thank you.