Hi everyone, and welcome to YIT's annual call preceding the silent period of our half year 2026 results release. My name is Essi Nikitin, and I'm heading the Investor Relations at YIT. Together with me today, I have our interim CFO, Markus Pietikäinen, and our CEO, Heikki Vuorenmaa, on the line. As usual, we will start with the recap to recent developments in the company presented by Markus, and after that, the participants will have an opportunity to ask questions from Markus and Heikki. As a reminder, this call will be recorded and the recording will be published on our website after the call. At this point, I hand over to Markus. Please go ahead. Thank you, Essi, and good afternoon, everyone. Let's proceed with the silent call for the second quarter 2026. First, a short update on our businesses starting with residential CEE business. As a recap, our residential CEE segment continued to perform well in the first quarter of the year with a steady growth in both revenue and profit. The segment has become a clear profit driver for the group. The year began with healthy margins showing the quality of the new projects we launched in 2025. Project margins have remained at targeted levels and the market conditions continue to be favorable, giving us more opportunities to continue to reach our strategic targets. As you all know, we started reporting on our residential self-developed business using the percentage of completion method from the beginning of the year. This evens out the revenue and profit variation between the segments. It is, however, good to note that as we have very similar completions profile this year in comparison to last year, revenue and profit generation is still to some extent biased towards the end of the year, as those completion rates and sales rates are typically not linear, but are rather accelerated towards the completion of the project. We continue to allocate further capital and focus on the CEE residential markets to secure future projects to our pipeline. We'll continue to start projects during the year, given the market remains favorable to support our growth and strategic ambitions. On a rolling 12-month basis, our apartment sales were at a strong level of approximately 2,000 units in Q1. The Finnish residential market is likely to remain highly consumer-driven in 2026, as investor demand for residential projects remains muted. According to the Finnish Ministry of Finance new economic outlook published two days ago, the residential market has slowed again. Residential prices are still declining and purchase intentions remain low. It is estimated that residential construction will continue to contract slightly this year with the return to growth postponed to 2027. We continue to adapt our operations to prevailing market conditions and launch self-developed customer projects on demand. No self-developed customer projects were launched during the Q2. Our inventory of unsold completed apartments has decreased and is approaching normal levels also in the Helsinki metropolitan area. YIT's operating model in Finland has undergone a significant transformation, which has reshaped our organization during the quarter and resulted in a reduction of 95 positions. The renewed operating model strengthens our ability to serve customers and is expected to support our 2026 adjusted operating profit by EUR 7 million, providing us total annualization adjusted cost savings of EUR 18 million by the end of 2027. During Q2, we announced one agreement in the construction of student apartments with long-term interest rate subsidies in Lappeenranta. The total value of the contract for YIT is approximately EUR 20 million, and the construction of project is estimated to start during the second half of the year. In the beginning of the third quarter, we are happy to announce the appointment of Mari Puoskari as EVP Residential Finland segment and a member of YIT leadership team. Mari started in her position in the beginning of May. We wish her warmly welcome to YIT. Let's move on to our contracting segments, infrastructure and building construction. The infrastructure segment has demonstrated strong momentum since 2025, with all key performance indicators developing positively. This reflects the successful execution of our strategic initiatives. YIT is participating in the implementation of the infrastructure program of Helsinki West Light Rail Project, and the construction started in late May. We have strong expertise in demanding urban infrastructure projects, and we bring our capabilities in light rail construction, municipal engineering, and urban environment development to the project in close collaboration with our alliance partners. The project will be delivered through separate stages. The entity ordered now is valued at approximately EUR 12 million for YIT, and the remaining stages are to be commissioned later during 2026 and 2027. The contract will be included in YIT's second quarter order book. The total value of the project for YIT is approximately EUR 62 million. Yesterday we announced that we have signed an agreement to construct the shell and core of a third data center for XTX Markets in Kajaani. We will serve as the main contractor for the project. We are pleased to continue our collaboration with XTX Markets. This long-term partnership reflects strong trust in our capabilities, as well as excellent collaboration with digital customers and our partners. The fast development of industrial construction, and particularly data center construction, is benefiting both infrastructure and building construction segments. The data center market remains attractive in Finland, and our capabilities, track record, and references are compelling to our customers, bringing us opportunities to increase our revenue and profit in the future. All in all, the order book for the infrastructure segment is strong, and the segment is well-positioned to pursue growth and further enhance operational efficiencies. Building construction volumes were up by 12% in the first quarter of the year, setting a solid foundation for the rest of the year. We announced that YIT and VTK Kiinteistöt Oy have signed a contract for the implementation phase of the educational building of Tikkurila Competence Campus and begun the project's construction work. During the development phase, the amount for the collaborative project management contract was revised to EUR 77 million. The contract will be entered in YIT's order book for the second quarter of 2026. In early May, we announced the issue of a new EUR 150 million senior secured green floating rate note maturing in May 2030. The notes carry a margin of 4.35% per annum. This was a successful transaction as part of our regular refinancing and extending the average debt maturity in a turbulent capital market. Subsequently to the new issue, we tendered the senior secured green floating rate notes maturing 2027 with a nominal amount of EUR 100 million in full. As a conclusion, our strategy of building a geographically and operationally resilient business model is providing us with a solid foundation on which to build the future business. We are redeploying capital released from non-strategic items to businesses and business with stronger return potential and driving growth where market conditions are most supportive. This is a recap of the typical main events. We're now happy to take your questions. Thank you, Markus. If you have a question, please use the raise hand function. We have a first question from Atte Jortikka. Please go ahead, Atte. Thank you. Thank you for taking my questions. This is Atte Jortikka from Inderes. Firstly, on the residential CE, in Q1, you started roughly 300 apartments there. Have you been able to ramp up the production in Q2? Yeah, thank God. This is Heikki here. Thank you for your question. Indeed, we had a start in Q1. We will still have some time left also before we actually completely finalize into Q2, sharing the kind of the full quarter starts. What I can say is what Markus was already pointing out on the markets, the market overview remain favorable. Obviously, we have a strong plot portfolio, strong project pipeline. According to our strategy, we have a growth ambition on exceeding 15% annual growth. That's what the environment we are executing. Let us come back to the actual numbers after Q2 is fully closed. Understood. On Residential Finland, did you already see the effect of the cost-cutting measures made during Q2? Obviously now the organization started May 1st, and as we communicated that the majority of the cost-saving activities or the cost-saving impact will be actually fully materializing in 2027 with some of that impact on 2026 as well. I would say, I think broadly speaking is that, typically we'd expect those to be more tilted towards the second half of the year in kind of if you project this compared to our earlier similar type of situations. Yes. You didn't launch any self-developed projects in Q2. What was your level of ambition there for Q2 at the start of the year? Here we approach it in a way we are kind of observing all the time what is the market situation so that we are keeping the starts and the volume in balance. Also what type of a products and what kind of locations we have. There were no projects now in Q2. Well, there's still a few days to go right in Q2. But so far in Q2, there hasn't been projects that would have been meeting our requirements in terms of the pre-reservation rates. Therefore, we haven't ended up on starting the projects. Generally speaking, of course, we have been redesigning projects. We have a good set of products and portfolio available for the start, but we need to have a market also favorable before making a start decisions. Yes. Continuing on that, you commented that the market remains consumer-driven. Are there any signs of recovery in investor demand? At least some of your competitors have managed to start investor projects during the first half. Yeah. Like you mentioned, we've seen some starts there. I think there's still the mathematical calculation that would require interest rates, as well as then the rental rates, as well as construction costs to find right balance and availability of rented apartments in the market. We haven't seen material development on those elements in the first part of this year. Meaning is that, I would say broadly speaking, the situation on the investor market has remained the same. Even we've seen some of the stocks there indeed and of course closing some of the portfolios between the investors, meaning showing some activity. Broadly speaking, current situation has really remained the same as it has been. Understood. Lastly from me, before we spoke in Q1, you didn't see any effects of the geopolitical tensions or affecting demand or the cost side. Has that materialized in any way, during Q2? Yeah. Our view hasn't really changed since we discussed this on Q1. Of course, now we are again in a quite interesting point in time, exactly right now, seeing that to which direction these tensions are now developing. Obviously, I think we discussed also last time that you will see rather quick impact on the petrol prices and that impacts. However, we have been monitoring the situation and ensuring that we have a proper contract and negotiation position in place there. What comes to the market dynamics and all that, our view hasn't changed since Q1. Okay. Just making sure that, for example, in residential CE, you haven't seen any impact from this in the markets. Yeah. I think Markus was saying is that the market remaining favorable there. That covers also the element of the geopolitical turbulence question. Yes. Understood. Thank you. That was all from me. Thank you, Atte. Yes, we have the next question from Svante. Please go ahead. Thank you, YIT. Markus and Essi, a couple of questions. First one on your most recent data center announcement with XTX on shell and core. I know you do not want to disclose anything regarding the EUR terms values or basically anything else, but we have one reference point, which is the first contract with XTX, where you mentioned it was worth EUR 100 million. I guess, is it fair to assume that that was substantially bigger because that also included other elements than the actual data center? You are, Svante, exactly correct on that. We are not, unfortunately, capable to share the kind of details in terms of actual EUR there. One could just work it that way. If you look also at how the site has been progressing. If you look, what we are really pleased is that our cooperation there has been extremely good. We have been working now with our customer client there for successfully already quite some time. This is showing the kind of their trust on our capabilities to deliver this starting of the third project, which you typically start from the core and shell part before advancing. Thank you. Could you give some color also on the data center construction cycle from your perspective? Are we talking about 6-12 months, or is there a big difference between the different projects? There are differences between the projects. Obviously, the kind of the pure size of the project, but also the layout designs and complexities there. Still, I would say, if I'm referring to the Not specifically on this customer, but if I look to some other projects that we have been communicating, for example, we communicated in Kouvola. We were communicating the start of the project in November 25, and then the rooftoping party took place somewhere in late Q1, early Q2 timeframe. That gives you a bit of the color on how quickly those projects advance. Like I said, unfortunately, this is an area where we are very limited to share project-specific information, so I need to rely on the publicly available information there. Just even continuing a bit on the data center and Markus already brought a bit color on how the market is there. What we've seen is that we believe that it is a big opportunity for the whole construction industry in Finland. We've been clearly communicating also that from our perspective, we believe that this is now taking the first steps and it might be a longer-term opportunity for the whole construction industry. Okay. Thank you. The last question. Residential Finland, could you elaborate a bit on the sales rate development and what could be expected? I mean, we were quite low in Q1 compared to the 27 versus the 41 in Q4. Has there been any changes to how you operate here? We will get the full picture as the Q3 numbers are published. Referring to what Markus already pointed out earlier, for example, what the Finnish Ministry of Finance published just few days ago, that the residential market even slowing down. Again, of course, the residential market as a concept in Finland is relatively broad. Maybe that is the one external data point pointing out that in what is the operating environment that our Residential Finland segment is currently operating in. Good news, of course, is that if you look our residential construction, so already in Q2, more than 80% of the construction for us is about CEE, and that's the area where we are growing and has been selecting that as our strategic growth area already at the late 2024. Okay. Thank you. That is all from me. Thank you, Svante. Thanks, Svante. We have the next question from Tommy. Please go ahead, Tommy. Yes. Thank you. Hi, Essi. Hey, Markus. I was also going to question or ask a little bit about the data center, is it fair to assume a couple of tens of millions EUR for the announced order in terms of the shell and core? Thank you, Tommy, for the question. I need to be extremely boring here and repeat my earlier messages that unfortunately can't disclose or give any pointers on the value of the contract. What we can only say is that we are very pleased with how things are progressing. It's fair. Thanks. Can you share any light, what kind of discussions are you having at the moment? Are there several possible projects which you are negotiating? What could be the timeline of decision-making? What is the active discussion out there in the market? I'm keeping my same line with the previous answer. We will then come back when there's actually something that we can communicate from that situation. Unfortunately, we need to still hold our horses here for a while. All right. Then, I read somewhere in the media that Oma Säästöpankki is filing for a bankruptcy of FinCap. I think it was earlier called FinCap, but they have changed the name. If I'm understanding correct, you owned, at least, if not own still 49% of the company. They have some receivables from the company. Is there any risk from this potential bankruptcy? There's an unfortunate case of namesakes, not as such being the same company there. It's a different- All right. different company that is in question. All right. Okay, that clears it. Thank you. Yeah. Thank you, Tommy. Okay. Thanks, Tommy. Next question comes from Hans. Please go ahead, Hans. Yes. Hi, all. Thank you for the recap. Maybe one question from me and it's on your guidance. Your guidance, of course adjusted EBIT, but Would you maybe disclose your estimate, how much adjustments we could expect for the full year 2026, and how much of these adjustments would be cash flow impact items? Thank you, Anssi. We haven't had a practice on that to give that guidance. If you historically look our adjustments, let's say the past four years, taking that kind of view, typically those have been elements where there has been, I would say, broadly speaking, those have been something that has been providing cash flow for the company. Still, overall, we do not provide such a guidance on our outlook. Yeah. Okay, understand. Actually, one more from me on cash flows in general. Of course, residential CEE is increasing its share of your business. Is there anything we should take into account when thinking about your quarterly cash flow going forward, like in 2026? Are there any special elements, to say, in these residential CEE projects going forward as the structure is a bit different compared to Finland? Yeah. Thank you, Anssi. I would actually give a couple of points there, which we have been really working on in the past two, three years. If you look our capital employed in that segment, at the same time, volume that we have been accelerating in terms of production volume as well as the top-line growth, we haven't that much allocated new capital investment to I think, actually, the capital employed in the segment is broadly the same or even on the declining trends. I don't have the exact number in my head, but it's been really an element that we have been focusing on. How do we operate and execute the growth so the way that we have capital employed under control? Markus is actually pointing out here, just Q1 2026, we had operating capital employed EUR 316, and a year ago at the same time, EUR 323. If you looked at how much more we had actually on production at the same time. I think it gives a good flavor on the work that the team has been putting in in order to find the capital-efficient ways to execute the business. That's one. When we look our quarterly, Q1 was a good quarter if you look our cash flow. Typically, you kind of get to use the seasonality of the cash flow, especially beginning of the year. I think we had a very solid start for the year. Even looking a few years back, we have been now 2024 and 2025 generating approximately EUR 100 million cash on both of those. Markus can provide a bit more color on that. Even we do not guide the cash flow, we do not provide a quarterly forecast to the cash flows and all that, but looking maybe the historical performance of the group. That's a few thoughts from my head. Markus, if you want to comment. Thank you. I think the one thing to note is that obviously the percentage of completion is earnings, a different way of putting the earnings and sales in terms of the reporting. The cash flows obviously are based on different metrics. I think that the dynamic in terms of starts and then completions have very much been tilted to the end of the year. Under IFRS, obviously, has been a question of which year a particular revenue and the earnings can be recognized. Now with the percentage of completion, that also has a new tool of leading the business that potentially then gives them more evenly distributed projects through the year. Going forward, potentially would then offer also cash flows more evenly than it was being in the past. That perhaps just good to note that the percentage of completion is obviously earnings and sales and liquidity, and the cash flow would then move with completions and sales. Okay, that's clear. Do you have any pre-agreed commitments on plots, for example, that you have to or you want to fulfill during this year, which you always report these purchase commitments? I think we are disclosing that on our reporting. Like in earlier times, we have been saying quite consistently is that we have always those exit. Broadly speaking, most of the cases you have exit clauses and opportunities in place as well. Perhaps, Jeff, if I may just add to note that there is no extraordinary or so in terms of commitments which we have upcoming. According to the notes, it's quite business as normal. Okay, great. Thank you. Thank you, Anssi. Do we have any more questions from anyone? Nope, it seems that there are no more questions. Thank you all for participating. We will publish our half year 2026 results on Friday, 24th of July. Before that, I wish you all sunny and relaxing midsummer. Thank you all. Thank you. Thanks. Okay. Thank you. Bye bye. Bye bye. Thank you.