{"segments": [{"speakerId": "S1", "sentences": [{"start": 1, "end": 7, "text": "Good morning, everyone, and welcome to this third quarter 2024 results webcast."}, {"start": 7, "end": 11, "text": "My name is Essi Nikitin and I'm heading the investor relations at YIT Corporation."}, {"start": 12, "end": 13, "text": "With me here are our CEO, Heikki Vuorenmaa, and CFO, Tuomas Mäkipeska."}, {"start": 13, "end": 17, "text": "Here are our CEO, Heikki Vuorenmaa, and CFO, Tuomas Mäkipeska."}, {"start": 17, "end": 20, "text": "At this point, I hand over to Heikki."}, {"start": 20, "end": 21, "text": "Please go ahead."}]}, {"speakerId": "S2", "sentences": [{"start": 22, "end": 26, "text": "Thank you very much and good morning, everyone."}, {"start": 26, "end": 27, "text": "Welcome to Follow The Wire."}, {"start": 27, "end": 29, "text": "This presentation highlights the third quarter."}, {"start": 29, "end": 33, "text": "Through this webcast, I will share some of our thoughts on our third quarter results."}, {"start": 34, "end": 39, "text": "And then Tuomas will continue with more details on our financial numbers and performance."}, {"start": 41, "end": 43, "text": "The quarter progressed as planned."}, {"start": 44, "end": 54, "text": "The profitability increased in all segments during the quarter, resulting in a positive cash flow due to an improved market environment."}, {"start": 54, "end": 63, "text": "We are also pleased to upgrade our view on the Baltic residential market, as it has returned to normal from our perspective."}, {"start": 63, "end": 69, "text": "And during the quarter, we sold a total of 550 new homes to consumers."}, {"start": 70, "end": 77, "text": "So overall, a solid quarter, and we are well on track to achieve our financial guidance for the year."}, {"start": 79, "end": 83, "text": "During the quarter, our revenue declined to €450 million."}, {"start": 83, "end": 91, "text": "It's good to remember that the comparison period included certain one-off transactions, such as the selling of Mr."}, {"start": 91, "end": 96, "text": "Party, which is one of our office buildings, and that took place in the third quarter of last year."}, {"start": 96, "end": 99, "text": "However, those do not fully account for the difference."}, {"start": 99, "end": 118, "text": "What we are seeing here in the year-on-year comparison is supported by the positive benefits from the transformation program and the completions in the Baltics; our profitability increased compared to last year and amounted to €26 million during the quarter."}, {"start": 118, "end": 124, "text": "Let's split the numbers among our businesses and also discuss those in more detail."}, {"start": 128, "end": 138, "text": "Our overall operating profit during the quarter reached 5.6%, which is a solid performance considering the market conditions in Finland."}, {"start": 138, "end": 146, "text": "Housing Finland turnover and profitability decreased year on year, supported by a positive €6 million item."}, {"start": 146, "end": 158, "text": "This item is connected to accruals on our balance sheet, related to liabilities that we have for apartments that have been under a ten-year liability period."}, {"start": 159, "end": 167, "text": "It is good to note that this amount has been accrued to our financials during earlier quarters and has impacted our profitability previously."}, {"start": 167, "end": 173, "text": "Now it was recognized, thus creating a positive impact during this third quarter year to date."}, {"start": 173, "end": 175, "text": "We are now on a correct level."}, {"start": 176, "end": 185, "text": "Housing Baltic and CEE continued according to plan, delivering solid profitability with nearly a 10% operating margin during the quarter."}, {"start": 186, "end": 189, "text": "Infra had another good quarter."}, {"start": 189, "end": 194, "text": "Revenue increased and profitability remained at a solid 5% level."}, {"start": 194, "end": 201, "text": "Performance in business premises also improved as planned, and the segment profitability is trending in the right direction."}, {"start": 202, "end": 205, "text": "So, our operational engine is getting up to speed."}, {"start": 205, "end": 209, "text": "Yet, recovery in the housing market in Finland has not yet started."}, {"start": 211, "end": 216, "text": "Let's delve deeper into different business areas and start with housing in Finland."}, {"start": 216, "end": 221, "text": "The amount of unsold Finnish apartments continues to decline as our sales speed exceeds completions."}, {"start": 221, "end": 225, "text": "This trend is expected to continue in the coming quarters."}, {"start": 225, "end": 232, "text": "During the quarter, we also agreed on and communicated about new projects with our customers who are building supported rental houses."}, {"start": 233, "end": 236, "text": "Those are now recorded over to our order book."}, {"start": 237, "end": 247, "text": "The overall decline of the order book is due to market conditions in Finland, and during the first nine months, we did not launch any new self-developed projects in Finland."}, {"start": 248, "end": 261, "text": "Then, if we look at overall completions in the Finnish housing market and the outlook it has, there actually hasn't been much change regarding completions in the market for the coming year."}, {"start": 262, "end": 267, "text": "And consequently, we are already starting to observe regional supply shortages."}, {"start": 268, "end": 275, "text": "The status of the vehicle rental apartments and unsold Finnish apartments is predominantly an issue in the capital area."}, {"start": 275, "end": 281, "text": "If we look at the growth cities such as Tampere, a supply shortage is already a reality."}, {"start": 282, "end": 292, "text": "At the same time, apartment prices on the secondary market are at a historically low level and construction companies are offering discounts to consumers."}, {"start": 292, "end": 299, "text": "Consumer confidence in Finland is once again at the highest level in 18 months, and purchasing power is increasing."}, {"start": 299, "end": 317, "text": "We also see that the interest rates have declined substantially during the third quarter, and as the starts of new apartments have reduced by 90% already over the past 48 months, the new supply will be exceptionally low in 2025."}, {"start": 319, "end": 329, "text": "To conclude, the buyer's market will turn into a seller's market and this will have consequences on availability and prices in the coming years."}, {"start": 332, "end": 336, "text": "Our stock of unsold apartments is declining as planned."}, {"start": 336, "end": 349, "text": "If the stock continues to be an asset for us, as there are no new completions coming up for the period of time, our apartment stock is concentrated in the capital area while we are almost sold out in other major cities."}, {"start": 349, "end": 356, "text": "For example, we are sold out completely in Joensuu, Jyväskylä, Mikkeli, and many other cities in Finland."}, {"start": 356, "end": 368, "text": "Inventory in Tampere reduced 30% during the quarter, and in Turku we have only a few units to go, so the stock is running out and it will last until the end of the third quarter in the capital area."}, {"start": 369, "end": 372, "text": "Outside it will end much earlier."}, {"start": 374, "end": 380, "text": "But it's time to leave Finland and move to other European countries within our housing segment."}, {"start": 380, "end": 387, "text": "The positive trend continued in operating countries and we see our finished apartment stock melting at an accelerated pace."}, {"start": 387, "end": 392, "text": "The order book is well under control despite not having many starts during the quarter."}, {"start": 392, "end": 399, "text": "Rolling 12-month operating profit margin is at 13%, which is a solid level for the business."}, {"start": 402, "end": 403, "text": "Talking about the starts."}, {"start": 403, "end": 410, "text": "We started a limited number of projects during the third quarter, totaling only 57 apartments."}, {"start": 410, "end": 412, "text": "There is no drama behind the Baltic."}, {"start": 412, "end": 413, "text": "and CEE."}, {"start": 413, "end": 413, "text": "Number."}, {"start": 414, "end": 417, "text": "We started according to the business plan and continued to launch."}, {"start": 417, "end": 418, "text": "New start."}, {"start": 418, "end": 421, "text": "Same pace as the sales progress in Finland."}, {"start": 421, "end": 426, "text": "We didn't have any starts during the quarter, which reflects the current market conditions."}, {"start": 426, "end": 436, "text": "Could you note, like I mentioned earlier, that we haven't started any projects during the first nine months, and it will limit some capabilities to turn the profit in the following year?"}, {"start": 436, "end": 444, "text": "We have 12 projects in pre-marketing, and we have now started one project in Vaasa during the fourth quarter."}, {"start": 445, "end": 464, "text": "If you look at the completion of that project, it will still be completed during 2025, and our construction lead time for residential projects in Finland has decreased by over 15% compared to the past two years, now under 12 months."}, {"start": 464, "end": 472, "text": "So we do have the capability to execute projects still in 2025 and especially in 2026 in Finland."}, {"start": 472, "end": 474, "text": "So that's good to note."}, {"start": 474, "end": 490, "text": "Even though we haven't started much in Finland during this year, we will actually discuss this topic much more and our improved capabilities during the Capital Markets Day presentation, to which I invite all of you to join either in person or through the webcast."}, {"start": 496, "end": 500, "text": "The production for us is now 2,600 apartments."}, {"start": 500, "end": 503, "text": "We have reached what we believe to be the bottom of the cycle."}, {"start": 504, "end": 510, "text": "The supply chains are working well, material costs are stable across the operations, and projects are well under control."}, {"start": 510, "end": 523, "text": "We have taken substantial efforts to consolidate our supply base, and that work continues as we are seeking closer cooperation and improved resilience for our supply chain in the coming years."}, {"start": 528, "end": 532, "text": "I discussed the starts and then the completions."}, {"start": 532, "end": 539, "text": "We had a total of 376 completions during the quarter, and 61 of those took place in Finland."}, {"start": 539, "end": 549, "text": "We have also shifted some completions in the Baltics and CEE from this year to early next year, so the total number of completions has declined slightly for 2024."}, {"start": 549, "end": 551, "text": "There is no drama here again."}, {"start": 551, "end": 553, "text": "The reason behind this is not production-related."}, {"start": 553, "end": 561, "text": "It's more connected to the optimization of total economic impact for the company than to sales."}, {"start": 562, "end": 566, "text": "As I mentioned in the beginning, we had a solid quarter in sales."}, {"start": 566, "end": 571, "text": "Our segment sales increased both in the CEE region and in Finland compared to last year."}, {"start": 571, "end": 578, "text": "I am particularly pleased with our sales team's effort in the Baltics and CEE to create a compelling offering for our consumers."}, {"start": 578, "end": 588, "text": "We have introduced new AI-based tools and analytics to support our sales, and the results are tangible and visible in these numbers as well."}, {"start": 588, "end": 601, "text": "As mentioned, we sold 550 wired homes during the quarter, including sales from our joint venture production vehicles, to which we will delve deeper on the following page."}, {"start": 603, "end": 610, "text": "Additionally, operations in our joint venture production vehicles are progressing very well."}, {"start": 610, "end": 612, "text": "Sales were strong during the quarter."}, {"start": 612, "end": 619, "text": "Amount of unsold inventory is decreasing, and the new completions are actually taking place in the fourth quarter."}, {"start": 619, "end": 626, "text": "We have the capacity to produce over 2000 new homes with our JV partners in pivotal and key countries."}, {"start": 626, "end": 633, "text": "So overall, solid performance during the quarter, and we are in a very good place with those operations."}, {"start": 633, "end": 634, "text": "Operations in the Baltics."}, {"start": 634, "end": 635, "text": "And see."}, {"start": 639, "end": 645, "text": "Then it's time to leave the housing segment behind and move to our infrastructure segment.<br /><br />"}, {"start": 646, "end": 654, "text": "Our infra segment is showing consistent performance and all the KPIs are pointing in the right direction."}, {"start": 654, "end": 657, "text": "We have already resolved the balance sheet issues."}, {"start": 657, "end": 662, "text": "The order book is particularly strong, and profitability is at a good level."}, {"start": 662, "end": 670, "text": "The performance turnaround is also attracting talent from the industry, and we are seeing many top performers joining to help the infra team."}, {"start": 670, "end": 673, "text": "During the previous quarter and throughout the year."}, {"start": 674, "end": 678, "text": "So all I can say is that the infrastructure is on a good track."}, {"start": 683, "end": 690, "text": "The business premises quarter was also completed and ended on a high note."}, {"start": 690, "end": 696, "text": "Results improved compared to our comparison period for the business premises team."}, {"start": 696, "end": 707, "text": "The track is still short, but we start to see a solid foundation of renewed project management skills having a positive impact on our operating result."}, {"start": 708, "end": 713, "text": "Our order book trend is connected to the industry competition situation."}, {"start": 713, "end": 724, "text": "We are remaining focused on complex projects and sustaining healthy margins that allow us to deliver quality and perform work in a safe way for our customers."}, {"start": 724, "end": 730, "text": "Still, our order book is strong and we keep our promise to customers, which is key to our business."}, {"start": 734, "end": 739, "text": "It's time to conclude from my side before handing over to Tuomas, as I mentioned."}, {"start": 739, "end": 744, "text": "So, we have now upgraded our Baltic housing market outlook to normal."}, {"start": 746, "end": 751, "text": "The reason for that is that the progress over past quarters has also shown that the recovery has continued."}, {"start": 752, "end": 757, "text": "Lithuania, Latvia, and most recently, Estonia."}, {"start": 757, "end": 760, "text": "The housing and residential market is improving."}, {"start": 760, "end": 766, "text": "Therefore, we are seeing that we are now operating also under normal conditions in the Baltic countries."}, {"start": 766, "end": 768, "text": "In Finland, the market continues."}, {"start": 768, "end": 776, "text": "The same market recovery is expected during 2025, and it might be tilted towards the second half of the year."}, {"start": 777, "end": 781, "text": "There are no changes to other market conditions in our operating countries."}, {"start": 782, "end": 782, "text": "All right."}, {"start": 783, "end": 786, "text": "Time now to hand over to you, Tuomas."}, {"start": 787, "end": 788, "text": "Thanks, Jake."}, {"start": 790, "end": 797, "text": "From a financial perspective, Q3 was a solid quarter in the current operating environment."}, {"start": 797, "end": 801, "text": "Our key performance indicators continued on the right track."}, {"start": 802, "end": 809, "text": "Profitability improved in all segments, and all businesses contributed to the overall solid quarter."}, {"start": 810, "end": 818, "text": "Capital employed decreased significantly, and consequently, we reduced the net debt by approximately €80 million from the comparison period."}, {"start": 818, "end": 822, "text": "Additionally, the cash flow for the quarter was positive."}, {"start": 822, "end": 825, "text": "Let's have a closer look at the financials."}, {"start": 830, "end": 832, "text": "Starting with the capital employed."}, {"start": 833, "end": 837, "text": "As you can see, the quarter was steady from the capital employed point of view.<br /><br />"}, {"start": 837, "end": 841, "text": "And we didn't take major steps forward during the quarter."}, {"start": 842, "end": 848, "text": "When looking at the slightly longer time period, we are on a positive downward trend."}, {"start": 848, "end": 860, "text": "During the last four quarters, we have released €140 million of capital at the group level through the execution of the capital release program in Housing Finland."}, {"start": 860, "end": 875, "text": "We have been able to keep the development pretty much stable during the last 12 months due to the measures taken in the operations and the sale of apartments from inventory and low construction volumes, which will further release capital in upcoming quarters."}, {"start": 876, "end": 880, "text": "In Housing Baltics and CEE, we have released capital."}, {"start": 880, "end": 894, "text": "Altogether, some €30 million during the last 12 months, mainly as a result of the formed joint ventures to develop large area projects together with RSJ investments in infrastructure."}, {"start": 894, "end": 896, "text": "As you already mentioned."}, {"start": 896, "end": 902, "text": "So we continue to operate with negative capital employed and generate positive cash flow."}, {"start": 902, "end": 911, "text": "In total, over €70 million of capital has been released during the last 12 months, demonstrating success in capital release measures."}, {"start": 911, "end": 918, "text": "Also in business premises, we have released €25 million of capital during the last 12 months."}, {"start": 919, "end": 927, "text": "The execution of capital release actions will continue and consequently improve the return on capital employed."}, {"start": 929, "end": 932, "text": "Let's move on to the cash flow development."}, {"start": 933, "end": 940, "text": "Operating cash flow continued on the right track and was slightly positive in Q3."}, {"start": 940, "end": 950, "text": "Over the last 12 months, cash flow was 63 million positive, and measures to improve the net working capital efficiency have already yielded results."}, {"start": 951, "end": 966, "text": "As we have stated in our guidance for this year, the operating cash flow after investments is expected to be positive, and maintaining positive cash flow has been a key focus for us, which we have delivered in a stellar manner."}, {"start": 967, "end": 979, "text": "If we then compare our key assets to the net interest-bearing debt, our underlying asset base continues to be very strong and amounts to over two times the net debt."}, {"start": 980, "end": 987, "text": "We have a land bank of over €800 million to serve as a platform for future operations and profits."}, {"start": 987, "end": 999, "text": "Completed apartments and real estate in our inventory decreased to approximately €400 million due to the apartment sales and the lower number of apartment completions in Finland."}, {"start": 1000, "end": 1016, "text": "The net debt amounted to €790 million at the end of the quarter, and almost €500 million of this debt is related to the IFRS 16 lease liabilities and long-term housing company loans."}, {"start": 1017, "end": 1024, "text": "When deducting these two components, the adjusted net debt amounted to approximately €310 million."}, {"start": 1025, "end": 1034, "text": "So the key takeaway here is that the balance sheet is asset-rich, and the adjusted net debt is very moderate in comparison."}, {"start": 1040, "end": 1058, "text": "The equity ratio of the company increased by a percentage point and stood at 34%, and net interest-bearing debt remained stable as mentioned compared to the end of Q2, but was €80 million lower than at the end of the comparison period."}, {"start": 1058, "end": 1068, "text": "Our financial position allows us the time to address the level of indebtedness, and there are ongoing actions to deleverage the balance sheet."}, {"start": 1069, "end": 1083, "text": "Gearing remained at the same level as at the end of Q2, but decreased significantly from Q3 last year due to favorable net debt development at maturity."}, {"start": 1083, "end": 1096, "text": "The structure of the interest-bearing debt, having only minor amortization to be performed this and next year, provides stability and the possibility to focus on improving the financial performance of the company."}, {"start": 1100, "end": 1103, "text": "Then, a couple of words about the transformation program."}, {"start": 1103, "end": 1112, "text": "Still, as we communicated in July, the run rate cost savings target of €40 million was achieved ahead of schedule."}, {"start": 1112, "end": 1117, "text": "The results of the program are already visible in our improved profitability."}, {"start": 1118, "end": 1120, "text": "Transformation program related."}, {"start": 1120, "end": 1130, "text": "Related costs have been estimated to be between €50 to €70 million in total, of which €57 million was realized by the end of Q3."}, {"start": 1131, "end": 1139, "text": "The program itself ends at the end of this year, but we will continue the work and move towards continuous improvement."}, {"start": 1140, "end": 1153, "text": "We continue to see substantial potential to release capital and improve the performance of the company, but we will elaborate on these topics at the forthcoming Capital Markets Day, as you mentioned."}, {"start": 1156, "end": 1158, "text": "Moving on to the guidance then."}, {"start": 1158, "end": 1170, "text": "Our guidance remains intact, meaning that we expect the group's adjusted operating profit for continuing operations to be between €20 million and €60 million this year."}, {"start": 1170, "end": 1176, "text": "Operating cash flow after investments is expected to be positive."}, {"start": 1177, "end": 1180, "text": "Also, the outlook remains unchanged."}, {"start": 1182, "end": 1185, "text": "So to summarize the finance section.<br /><br />"}, {"start": 1185, "end": 1193, "text": "Profitability improved in all segments in Q3, and we are on track in achieving the expected results for the full year."}, {"start": 1194, "end": 1206, "text": "Stable financial position enables us to focus on improving the financial performance of the company and optimize timing of certain capital release measures to maximize shareholder value.<br /><br />"}, {"start": 1207, "end": 1214, "text": "And then we continue to execute the transformation program to improve the overall performance of the company."}, {"start": 1214, "end": 1216, "text": "That concludes my part.<br /><br />"}, {"start": 1216, "end": 1218, "text": "And handing over back to you, Hank."}, {"start": 1218, "end": 1219, "text": "Thank you, Tuomas."}, {"start": 1219, "end": 1228, "text": "So, is it actually fair to summarize that we had a solid quarter with improved performance, a strong balance sheet, and good liquidity?"}, {"start": 1228, "end": 1235, "text": "And I think finally, what you're pointing out is that we have a long maturity and our financial position is really strong."}, {"start": 1235, "end": 1237, "text": "Yeah, definitely."}, {"start": 1237, "end": 1243, "text": "So yeah, that is a very good place to be."}, {"start": 1243, "end": 1255, "text": "From a financial perspective, we consistently work on topics that are not directly impacted by only one quarter’s financials."}, {"start": 1255, "end": 1257, "text": "But there are many important topics that we are improving."}, {"start": 1257, "end": 1269, "text": "And if you look just for highlights during the quarter, we are continuing to develop our procurement and how we are running that category-based model as part of the transformation program."}, {"start": 1269, "end": 1284, "text": "You already see some of those benefits on our financial performance, but it's just scratching the surface of what we are capable of doing in the coming years. Additionally, we have nominated a new Chief Procurement Officer and strengthened our overall organization."}, {"start": 1284, "end": 1288, "text": "And I think that’s a very positive topic for us."}, {"start": 1289, "end": 1291, "text": "We also conducted our employee survey."}, {"start": 1291, "end": 1306, "text": "This is one of the most critical indicators for our business in terms of how we are doing; 80% of our employees participated to give their voice, and our Employee Net Promoter score reached a very good level of 30."}, {"start": 1306, "end": 1312, "text": "We actually see improvement across all of our businesses, and engagement levels have increased."}, {"start": 1312, "end": 1319, "text": "This is fundamentally the most important driver for us."}, {"start": 1319, "end": 1326, "text": "We have our team fully engaged and committed to the plans that we have as a team."}, {"start": 1327, "end": 1330, "text": "We also continue the systematic work to strengthen the safety management."}, {"start": 1330, "end": 1333, "text": "This is the highest priority for us."}, {"start": 1333, "end": 1343, "text": "We have seen improvement year on year, and now our lost time injury frequency has improved to a level of 9.7."}, {"start": 1343, "end": 1349, "text": "We still have opportunities to improve there, and we will also discuss our target setting."}, {"start": 1349, "end": 1374, "text": "And how do we see that in the Capital Markets Day, and as a part of our investment and focus on developing capabilities and adapting the use of artificial intelligence, we are expanding our pilot to give access to all of our employees to use those tools, thereby ensuring productivity improvements across the company."}, {"start": 1374, "end": 1378, "text": "We have observed many use cases and significant potential."}, {"start": 1378, "end": 1397, "text": "I mentioned already one of those in the earlier part of the presentation, and we are going to use those to improve our productivity and free up time for our construction industry professionals to focus more on operations instead of data crunching and so-called repetitive tasks."}, {"start": 1397, "end": 1399, "text": "So those are the four topics."}, {"start": 1399, "end": 1406, "text": "And typically, I would actually summarize here our main focus areas for the coming quarters."}, {"start": 1406, "end": 1414, "text": "But now I'm actually inviting you to discuss those with us during the Capital Markets Day on November 13th."}, {"start": 1414, "end": 1417, "text": "If you are not able to participate in person."}, {"start": 1417, "end": 1419, "text": "We also have the webcast available."}, {"start": 1419, "end": 1431, "text": "And there we are going to shed a bit more light on how we are seeing our main focus areas for different segments and the overall business, and what we are capable of achieving in the coming years."}, {"start": 1433, "end": 1439, "text": "But this concludes the presentation part, and we are now ready for the questions.<br /><br />"}]}, {"speakerId": "S3", "sentences": [{"start": 1445, "end": 1452, "text": "If you wish to ask a question, please dial Pound Key five on your telephone keypad to enter the queue."}, {"start": 1452, "end": 1458, "text": "If you wish to withdraw your question, please dial Pound Key six on your telephone keypad."}, {"start": 1469, "end": 1470, "text": "Please go ahead."}]}, {"speakerId": "S4", "sentences": [{"start": 1471, "end": 1471, "text": "Guys."}, {"start": 1471, "end": 1473, "text": "Thank you for the presentation."}, {"start": 1473, "end": 1477, "text": "I have a few questions about them one by one if that's okay."}, {"start": 1477, "end": 1481, "text": "I just want to ask you about the order backlog situation."}, {"start": 1481, "end": 1489, "text": "First of all, in terms of KPIs, it is down roughly 19% year on year and down 8% for the quarter."}, {"start": 1489, "end": 1500, "text": "Could you please elaborate on the lead times this might have on revenues and how you look at the pipeline going forward, given the trend in the order backlog situation?"}]}, {"speakerId": "S2", "sentences": [{"start": 1500, "end": 1501, "text": "Okay."}, {"start": 1501, "end": 1504, "text": "Let me start by going business by business."}, {"start": 1504, "end": 1514, "text": "So, on the residential housing side, the order book is generated based on our startups and is highly connected to the low level of startups in Finland."}, {"start": 1514, "end": 1538, "text": "We have secured order book for those more contracting type of projects, and our order book will increase and improve as we start new projects in Finland and in the Baltic Sea area, where we were contracting more and performing more of the completions that we were doing, the startups during the quarter."}, {"start": 1538, "end": 1541, "text": "Therefore, there was a slight decline."}, {"start": 1541, "end": 1547, "text": "However, there is no reason to expect that this would be the situation we face."}, {"start": 1547, "end": 1550, "text": "We continue to pursue growth in that area."}, {"start": 1550, "end": 1560, "text": "Going forward, on the infra side, we were seeing a small change between the quarters."}, {"start": 1560, "end": 1567, "text": "Good to note that we announced a €150 million agreement that will now be recorded during Q4 into our order book."}, {"start": 1567, "end": 1572, "text": "We are very competitive in the market and we do not see that changing."}, {"start": 1572, "end": 1585, "text": "We see that there are good projects ongoing, also in the tendering at the moment in infrastructure. We have an order book for 24 months, which is really solid."}, {"start": 1585, "end": 1593, "text": "What we are building on is an order book for the future years in the business premises sector."}, {"start": 1593, "end": 1598, "text": "We have had an order book of self-developed projects, offices, and such."}, {"start": 1598, "end": 1600, "text": "We no longer initiate and start."}, {"start": 1600, "end": 1602, "text": "So there is the year-on-year comparison."}, {"start": 1603, "end": 1637, "text": "And then there is more about the timing of the orders between the quarters that we have seen declining on the business premises side. We have also selected the path to maintain our focus on certain projects and ensure that we have the right level of margins because we do know that you need to invest in those projects so that you can deliver them safely to your customers and on schedule and below budget, as we are always doing there."}, {"start": 1637, "end": 1641, "text": "So that's a bit on the kind of more details behind the order book."}, {"start": 1642, "end": 1643, "text": "Order book, which we currently maintain."}]}, {"speakerId": "S4", "sentences": [{"start": 1645, "end": 1647, "text": "Thank you for filling."}, {"start": 1647, "end": 1649, "text": "Also, there are."}]}, {"speakerId": "S2", "sentences": [{"start": 1649, "end": 1649, "text": "Just in the last."}]}, {"speakerId": "S4", "sentences": [{"start": 1649, "end": 1656, "text": "Another question is about the 6 million in housing reversal costs; could you elaborate on that?"}, {"start": 1656, "end": 1662, "text": "Secondly, also relating to the quarterly results, is increased net financing."}, {"start": 1662, "end": 1664, "text": "Just wondering if you could comment on that."}, {"start": 1664, "end": 1667, "text": "It's been a change in capitalized interest rates, etc."}, {"start": 1667, "end": 1667, "text": "."}, {"start": 1667, "end": 1672, "text": "Or is it just the higher interest rates that are impacting?"}]}, {"speakerId": "S2", "sentences": [{"start": 1672, "end": 1673, "text": "Yes, I will take the first one."}, {"start": 1673, "end": 1676, "text": "And Tuomas, if you could take the latter one."}, {"start": 1676, "end": 1686, "text": "In Finland, our operations are structured such that we remain liable for a ten-year period for all residential projects."}, {"start": 1686, "end": 1688, "text": "That's what we have been constructing for the market."}, {"start": 1688, "end": 1694, "text": "And, as we currently have much lower completions in the market compared to ten years ago."}, {"start": 1694, "end": 1700, "text": "So the amount of residential apartments within that window has decreased."}, {"start": 1700, "end": 1706, "text": "We made a correction to the error, which was a one-time item."}, {"start": 1706, "end": 1709, "text": "Now, that impacted the third quarter and year."}, {"start": 1709, "end": 1717, "text": "To date, we are now at the right level, and that cost has been systematically accrued in previous quarters."}, {"start": 1717, "end": 1726, "text": "And now we were seeing that actually, the number of all the apartments during that ten-year period has declined."}, {"start": 1726, "end": 1731, "text": "And therefore, it was the positive impact that took place during the quarter."}, {"start": 1732, "end": 1733, "text": "And if you take the interest."}, {"start": 1733, "end": 1734, "text": "Yeah."}, {"start": 1734, "end": 1737, "text": "Apologies, I missed part of the question."}, {"start": 1737, "end": 1739, "text": "Can you please repeat the question again?"}]}, {"speakerId": "S4", "sentences": [{"start": 1741, "end": 1741, "text": "Yeah."}, {"start": 1741, "end": 1744, "text": "It's the increased cost of financing now."}, {"start": 1744, "end": 1746, "text": "Net 19 million."}, {"start": 1746, "end": 1752, "text": "Just how much of that might be due to the capitalization of interest rates and their removal."}, {"start": 1752, "end": 1756, "text": "And how much is just due to higher interest rates and margins."}]}, {"speakerId": "S2", "sentences": [{"start": 1757, "end": 1758, "text": "Yes."}, {"start": 1758, "end": 1758, "text": "Thank you."}, {"start": 1759, "end": 1770, "text": "The amount and the development is purely related to the market interest rates, with no changes in the capitalization of any interest costs."}, {"start": 1770, "end": 1779, "text": "So that's purely related to the new situation after the refinancing, which we have completed in several parts during the first half of the year."}]}, {"speakerId": "S4", "sentences": [{"start": 1781, "end": 1782, "text": "Okay."}, {"start": 1782, "end": 1782, "text": "Thank you."}, {"start": 1782, "end": 1783, "text": "That's clear."}, {"start": 1783, "end": 1788, "text": "Another question pertains to the potential transaction of Triple-A."}, {"start": 1788, "end": 1791, "text": "We're seeing speculation in the market."}, {"start": 1791, "end": 1797, "text": "That company might be sold a large stake, implying yields of 6.5 to 7%, which has been rumored."}, {"start": 1797, "end": 1800, "text": "Is implied yields of 6.5 to 7%."}, {"start": 1801, "end": 1804, "text": "Uh, how do you feel about that?"}, {"start": 1804, "end": 1809, "text": "Might be relevant for the valuation and competition for the sale of your stake in Triple-A?"}]}, {"speakerId": "S2", "sentences": [{"start": 1810, "end": 1811, "text": "Uh, yes."}, {"start": 1811, "end": 1813, "text": "We also followed that with high interest."}, {"start": 1813, "end": 1825, "text": "The assets are of a different type, and based on our knowledge, it is not a full transaction of the company but actually about half of that or so."}, {"start": 1825, "end": 1844, "text": "And the same as there are, you know, how we are evaluating Triple-A on our balance sheet is that we are using a third party to advise us on what the applicable yield for our valuation methodology is, that we have on our balance sheet."}, {"start": 1844, "end": 1853, "text": "And the good news is that the same party involved in both of these elements is also the one providing us the yield."}, {"start": 1853, "end": 1859, "text": "So, we haven't seen any changes in our Triple-A yield, especially during the third quarter."}, {"start": 1859, "end": 1864, "text": "We continue to remain interested in the type of transactions that will occur."}, {"start": 1864, "end": 1870, "text": "And, of course, it is a substantial, sizable transaction."}, {"start": 1870, "end": 1876, "text": "It might actually be a sign of recovery for such transactions in Finland."}, {"start": 1877, "end": 1879, "text": "So from that perspective, we are positive there."}]}, {"speakerId": "S4", "sentences": [{"start": 1880, "end": 1881, "text": "Yeah."}, {"start": 1881, "end": 1881, "text": "Thank you."}, {"start": 1881, "end": 1882, "text": "And my last question."}, {"start": 1882, "end": 1892, "text": "If you want to give some comments on the news article yesterday in the Finnish Daily about the unsold inventory and discounts in the market."}, {"start": 1892, "end": 1893, "text": "I guess you've seen the article."}]}, {"speakerId": "S2", "sentences": [{"start": 1894, "end": 1895, "text": "Yeah."}, {"start": 1896, "end": 1903, "text": "Um, to be fully transparent, I haven't had too much time to go into that detail."}, {"start": 1903, "end": 1906, "text": "We do have some unsold inventory, as I mentioned earlier."}, {"start": 1906, "end": 1911, "text": "We do have some unsold inventory in Finland, which we consider an asset for us."}, {"start": 1911, "end": 1927, "text": "In some of those cases, we have been adjusting certain prices for the apartments, but as I mentioned, if we look broadly outside of the capital area, we only have a handful of apartments left."}, {"start": 1927, "end": 1939, "text": "We consider that as an asset, especially at this time when there is a limited amount of completions coming from us or any competitor in the market during 2025."}]}, {"speakerId": "S4", "sentences": [{"start": 1941, "end": 1942, "text": "Okay."}, {"start": 1942, "end": 1942, "text": "Thank you."}, {"start": 1942, "end": 1943, "text": "Those are my questions for now."}]}, {"speakerId": "S2", "sentences": [{"start": 1943, "end": 1944, "text": "Thank you."}]}, {"speakerId": "S3", "sentences": [{"start": 1950, "end": 1954, "text": "The next question comes from Ansi Rousey from Seb."}, {"start": 1954, "end": 1956, "text": "Please go ahead."}]}, {"speakerId": "S5", "sentences": [{"start": 1959, "end": 1960, "text": "Yes."}, {"start": 1960, "end": 1962, "text": "Hi all, and thank you for the presentation."}, {"start": 1963, "end": 1969, "text": "And to amass a lot of positives, like reducing capital employed and inventory levels."}, {"start": 1969, "end": 1975, "text": "But I think your net debt has increased two quarters in a row on a quarter-over-quarter basis."}, {"start": 1975, "end": 1983, "text": "What do you think needs to happen for the net debt to actually start decreasing significantly?"}]}, {"speakerId": "S2", "sentences": [{"start": 1984, "end": 1984, "text": "Yeah."}, {"start": 1984, "end": 1985, "text": "Thank you."}, {"start": 1985, "end": 1987, "text": "And like you said, there are a lot of positives."}, {"start": 1987, "end": 1996, "text": "And I have to say that I'm very pleased with how the team is working and that we are getting those plans executed."}, {"start": 1996, "end": 1999, "text": "It's visible in our performance."}, {"start": 1999, "end": 2015, "text": "We have a long list of plans focusing on your points in terms of reducing the debt level and achieving a lighter capital employed on our balance sheet, and we are diligently working on these."}, {"start": 2016, "end": 2022, "text": "I look forward to delivering more results in the coming quarters."}, {"start": 2022, "end": 2026, "text": "And I think Tuomas, you can continue there if there's something more."}, {"start": 2026, "end": 2027, "text": "Yes."}, {"start": 2027, "end": 2027, "text": "Thank you."}, {"start": 2028, "end": 2038, "text": "And definitely we are focusing on generating cash flow from the operations and then, of course, supporting the cash flow by releasing capital from the balance sheet."}, {"start": 2038, "end": 2041, "text": "So those are the two things that we are concentrating on."}, {"start": 2041, "end": 2044, "text": "Regarding the net debt development."}, {"start": 2044, "end": 2051, "text": "So of course we have an amortization plan regarding the net debt and the financial items."}, {"start": 2051, "end": 2061, "text": "As part of the net debt, and as I mentioned, we have only minor adjustments planned for this and next year."}, {"start": 2061, "end": 2068, "text": "But on top of that, of course, we plan for the financing over the longer period as well."}, {"start": 2069, "end": 2077, "text": "So basically, what we can argue here is that we are generating cash flow from the operations and capital release to support the net debt."}, {"start": 2077, "end": 2081, "text": "But of course, the amortizations are kind of pre-planned."}]}, {"speakerId": "S5", "sentences": [{"start": 2084, "end": 2085, "text": "Okay."}, {"start": 2085, "end": 2085, "text": "Thank you."}, {"start": 2085, "end": 2096, "text": "And then about the future activity, I guess that your activity has to pick up maybe already this year, but at least next year."}, {"start": 2096, "end": 2099, "text": "So how should we think about the cash flows?"}, {"start": 2099, "end": 2117, "text": "Of course, your advances received have been declining during the last couple of years, but do you think that you have to invest significant amounts from your balance sheet, or do you think that the advanced payments should cover this?"}]}, {"speakerId": "S2", "sentences": [{"start": 2118, "end": 2123, "text": "If I look at where we are, we are."}, {"start": 2124, "end": 2131, "text": "We have a very strong plot portfolio that we can utilize for the startups."}, {"start": 2131, "end": 2139, "text": "And from that perspective, we do not need to invest in new plots."}, {"start": 2139, "end": 2143, "text": "And so that's one clear fact that we are seeing."}, {"start": 2144, "end": 2158, "text": "The second element there is that we have taken quite substantial measures to change the operating models and the business models to tie up less capital during the construction period."}, {"start": 2158, "end": 2168, "text": "So those two things will support us as we are scaling up the production and supporting cash generation for us."}, {"start": 2168, "end": 2170, "text": "And if I may continue on that."}, {"start": 2170, "end": 2176, "text": "So, basically, in Finland, regarding self-developed projects and our plot portfolio."}, {"start": 2176, "end": 2183, "text": "So definitely we don't see the need to invest more in plots in the near future."}, {"start": 2183, "end": 2199, "text": "And based on that, the housing starts or the consumer startups here in Finland do not actually tie up too much capital, since there are essentially CIS loans as part of the financing situation."}, {"start": 2199, "end": 2203, "text": "So from that perspective, it doesn't burden the cash flow heavily."}, {"start": 2203, "end": 2211, "text": "Also, it's pretty much the same situation in the key countries where we have a very strong plot portfolio."}, {"start": 2211, "end": 2216, "text": "So we don't need to invest significantly more in the plots in the near future."}, {"start": 2216, "end": 2225, "text": "So that's basically supporting us going forward to generate cash flow, since there are no major new investments."}]}, {"speakerId": "S5", "sentences": [{"start": 2228, "end": 2229, "text": "Okay."}, {"start": 2229, "end": 2230, "text": "That's clear."}, {"start": 2230, "end": 2236, "text": "And then finally, from my side, about interest-bearing receivables, which you reported at."}, {"start": 2236, "end": 2243, "text": "Was it €77 million in your net debt, net cash, or cash position in this case?"}, {"start": 2243, "end": 2246, "text": "Can you disclose the nature of these receivables?"}]}, {"speakerId": "S2", "sentences": [{"start": 2247, "end": 2249, "text": "Yes, I can continue on that."}, {"start": 2249, "end": 2257, "text": "So that's basically related to the one financing item which also has a corresponding aspect on the debt side."}, {"start": 2257, "end": 2260, "text": "So that's basically a net debt neutral item there."}, {"start": 2260, "end": 2263, "text": "So no major drama there."}]}, {"speakerId": "S5", "sentences": [{"start": 2266, "end": 2267, "text": "Okay."}, {"start": 2267, "end": 2268, "text": "That's all from me."}, {"start": 2268, "end": 2269, "text": "Thank you."}]}, {"speakerId": "S2", "sentences": [{"start": 2269, "end": 2270, "text": "Thank you, Ansip."}]}, {"speakerId": "S3", "sentences": [{"start": 2275, "end": 2279, "text": "The next question comes from Svante Krokfoss from Nordea."}, {"start": 2280, "end": 2281, "text": "Please go ahead."}]}, {"speakerId": "S6", "sentences": [{"start": 2285, "end": 2286, "text": "Good morning."}, {"start": 2286, "end": 2289, "text": "Thank you for the presentation."}, {"start": 2289, "end": 2295, "text": "Coming back a bit to Siemens' question about this."}, {"start": 2295, "end": 2303, "text": "Could you elaborate a bit on your discounts offered in Finland, the Baltics, and CEE countries?"}, {"start": 2303, "end": 2318, "text": "What kind of strategy have you had there, and have you made any changes to it when consumers are interested in buying or perhaps asking for discounts?"}]}, {"speakerId": "S2", "sentences": [{"start": 2318, "end": 2319, "text": "Yeah."}, {"start": 2320, "end": 2323, "text": "So, if we start from Finland."}, {"start": 2323, "end": 2325, "text": "We have primarily operated through these campaigns."}, {"start": 2325, "end": 2333, "text": "Of course, the majority of the campaigns that included interest rate caps, for example, were ending at the end of August."}, {"start": 2333, "end": 2335, "text": "We have now introduced some new campaigns."}, {"start": 2336, "end": 2338, "text": "We have been open about that."}, {"start": 2338, "end": 2350, "text": "There is an opportunity for individual customers to start the negotiation on the price, and it's heavily related to availability, location, projects, and the type of a question."}, {"start": 2350, "end": 2363, "text": "It is important to note that all our apartments are recorded on our balance sheet inclusive of construction costs, and we do not sell them at prices below their construction costs."}, {"start": 2363, "end": 2366, "text": "Uh, those apartments forward."}, {"start": 2366, "end": 2381, "text": "There have been specific areas and locations where we have observed that the prices and demand may not be aligned."}, {"start": 2381, "end": 2396, "text": "And there we have also been making some public corrections on those houses and the apartments available for consumers. When it comes to the sea, we haven't seen a major need for discounts."}, {"start": 2396, "end": 2411, "text": "The market is healthy, and the boost for sales is actually driven by market conditions, not by activities such as discounts or similar."}, {"start": 2412, "end": 2418, "text": "And if I may continue here, just kind of a general comment on the markets."}, {"start": 2418, "end": 2421, "text": "When comparing the Finnish housing market and the sea."}, {"start": 2421, "end": 2434, "text": "As we have stated earlier, we do not observe significant price elasticity or demand elasticity in the Finnish market."}, {"start": 2434, "end": 2438, "text": "And we haven't seen that for a long time now."}, {"start": 2438, "end": 2448, "text": "But then, comparing to the CEE countries, there is present this kind of elasticity of demand as well regarding pricing."}, {"start": 2448, "end": 2453, "text": "So those exhibit distinctive characteristics between these two markets."}]}, {"speakerId": "S6", "sentences": [{"start": 2459, "end": 2460, "text": "Thank you."}, {"start": 2460, "end": 2469, "text": "And then, on plot investments, you mentioned that you don’t need to do any of those, basically."}, {"start": 2469, "end": 2476, "text": "But you have some commitments, quite big sums that may come up."}, {"start": 2476, "end": 2486, "text": "Could you give some color on what kind of commitments could be expected to be realized in the near term?"}]}, {"speakerId": "S7", "sentences": [{"start": 2487, "end": 2488, "text": "Yes."}]}, {"speakerId": "S2", "sentences": [{"start": 2488, "end": 2488, "text": "Thank you."}, {"start": 2488, "end": 2498, "text": "So yes, we have communicated the upcoming commitments as a gross amount, as we have argued earlier as well."}, {"start": 2498, "end": 2505, "text": "So we typically have contracts where we have an exit opportunity as well."}, {"start": 2505, "end": 2512, "text": "Basically, all of the contracts or commitments that we have now can be exited if needed."}, {"start": 2512, "end": 2517, "text": "But also, we believe that we are in this business for the long term."}, {"start": 2517, "end": 2521, "text": "So we evaluate, of course, plot by plot or investment by investment."}, {"start": 2521, "end": 2528, "text": "What is, for the time being, the best solution from a financial perspective."}, {"start": 2528, "end": 2535, "text": "But anyway, we are able to exit from the commitments if that would be necessary."}, {"start": 2535, "end": 2535, "text": "Yeah."}]}, {"speakerId": "S6", "sentences": [{"start": 2539, "end": 2540, "text": "Thank you."}, {"start": 2540, "end": 2546, "text": "And the last one, perhaps, you have projects in the pre-marketing phase."}, {"start": 2546, "end": 2548, "text": "I think you mentioned 12."}, {"start": 2548, "end": 2553, "text": "And you also mentioned that lead times have been reduced to even below 12 months."}, {"start": 2553, "end": 2557, "text": "Could you give some color on what has changed here?"}]}, {"speakerId": "S2", "sentences": [{"start": 2558, "end": 2559, "text": "Yes, absolutely."}, {"start": 2559, "end": 2563, "text": "We have redesigned our supply chain."}, {"start": 2563, "end": 2567, "text": "We have redesigned the production phases."}, {"start": 2567, "end": 2577, "text": "We have been adopting new operating models in terms of tack times and how we are constructing the structural phase on the residential part."}, {"start": 2577, "end": 2585, "text": "We are capable of using different operating models in terms of shift planning and so forth."}, {"start": 2585, "end": 2585, "text": "."}, {"start": 2585, "end": 2589, "text": "So those are the capabilities that our team has focused on and developed."}, {"start": 2589, "end": 2600, "text": "And as we implement these changes and supply chain constraints have eased, we now have the capability to start and deliver projects in under 12 months."}, {"start": 2600, "end": 2601, "text": "Now, the projects."}]}, {"speakerId": "S6", "sentences": [{"start": 2604, "end": 2605, "text": "Okay."}, {"start": 2605, "end": 2605, "text": "Thank you."}, {"start": 2605, "end": 2606, "text": "That is all from me."}]}, {"speakerId": "S2", "sentences": [{"start": 2606, "end": 2606, "text": "Thank you."}]}, {"speakerId": "S3", "sentences": [{"start": 2615, "end": 2618, "text": "The next question comes from Olli Koponen from India."}, {"start": 2619, "end": 2620, "text": "Please go ahead."}]}, {"speakerId": "S8", "sentences": [{"start": 2621, "end": 2624, "text": "Hey, good morning, and thank you for that presentation."}, {"start": 2624, "end": 2629, "text": "I have a few questions left after the ones already asked."}, {"start": 2629, "end": 2640, "text": "Um, just to continue a little bit about the Finnish housing market and just to ensure that I understand your comments on the report correctly."}, {"start": 2640, "end": 2654, "text": "Are you kind of expecting to start consumer apartments in the first half of 2025, or will you be mainly doing those startups in H2 2025?"}]}, {"speakerId": "S2", "sentences": [{"start": 2655, "end": 2661, "text": "Well, typically we are not giving too much of a forecast on the startups."}, {"start": 2662, "end": 2670, "text": "But what I can say is that if we now focus on a city-by-city basis, we are already observing supply shortages."}, {"start": 2670, "end": 2675, "text": "We see that the recovery is in different phases and in different parts of the country."}, {"start": 2675, "end": 2684, "text": "There is much focus on the news and public discussion about the situation in the capital area, but we also need to look outside the capital area to understand."}, {"start": 2684, "end": 2695, "text": "And we have those projects in pre-marketing, and we are starting those projects as the conditions for the pre-marketing have been met."}, {"start": 2695, "end": 2702, "text": "And for sure then I would expect those to lead also to the startups during the first half."}, {"start": 2702, "end": 2711, "text": "But like I mentioned, we do not provide specific forward-looking guidance or indications on our startup plan."}]}, {"speakerId": "S8", "sentences": [{"start": 2714, "end": 2715, "text": "Okay, thanks."}, {"start": 2715, "end": 2731, "text": "And this is just a continuation of the first question concerning your future housing startups and the funding of your own development projects, possibly in business premises in 2025."}, {"start": 2731, "end": 2751, "text": "Do you see that your cash balance, which was reduced this quarter, and your liquidity channels are sufficient to initiate startups in housing and business premises? Or will you need to release capital from your balance sheet to launch new projects in 2025?"}]}, {"speakerId": "S2", "sentences": [{"start": 2751, "end": 2754, "text": "We communicated yesterday that we started the first project there."}, {"start": 2754, "end": 2760, "text": "It is a clear signal that we have the capability and reserves to start projects."}]}, {"speakerId": "S8", "sentences": [{"start": 2766, "end": 2767, "text": "Okay."}, {"start": 2767, "end": 2767, "text": "Thanks."}, {"start": 2768, "end": 2769, "text": "That's all for me."}]}, {"speakerId": "S3", "sentences": [{"start": 2777, "end": 2784, "text": "As a reminder, if you wish to ask a question, please dial Pound Key five on your telephone keypad."}, {"start": 2789, "end": 2793, "text": "The next question comes from Emily Aymonin from Carnegie."}, {"start": 2793, "end": 2795, "text": "Please go ahead."}]}, {"speakerId": "S9", "sentences": [{"start": 2797, "end": 2798, "text": "Hi."}, {"start": 2798, "end": 2801, "text": "Thanks for taking my questions."}, {"start": 2801, "end": 2803, "text": "Just a couple more questions on the housing side."}, {"start": 2804, "end": 2810, "text": "Continuing on what Emily asked, what are your criteria now for starting apartments?"}, {"start": 2810, "end": 2813, "text": "I was a little bit surprised by the news from Mustasaari."}, {"start": 2813, "end": 2817, "text": "I think the reserved percentage was pretty low there."}]}, {"speakerId": "S2", "sentences": [{"start": 2818, "end": 2819, "text": "Yeah."}, {"start": 2819, "end": 2833, "text": "The criteria differ based on location, the availability of competitor projects nearby, predicted demand, and consumer behavior."}, {"start": 2833, "end": 2842, "text": "But in that situation, the criteria were met, and I think the pre-reservation rates were more than 40% for that individual project."}, {"start": 2842, "end": 2854, "text": "I would say that generally speaking, we talk about more than 50%, especially when we are in the bigger cities or the size of the project is larger."}, {"start": 2854, "end": 2860, "text": "That would be the kind of a generic rule of thumb for us."}]}, {"speakerId": "S9", "sentences": [{"start": 2863, "end": 2864, "text": "Okay."}, {"start": 2864, "end": 2870, "text": "And how do you see these startups affecting your net debt, or do they have any impact?"}]}, {"speakerId": "S2", "sentences": [{"start": 2871, "end": 2878, "text": "I think, Thomas, if you'd observe, that basically reiterates parts of the earlier question as well."}, {"start": 2878, "end": 2888, "text": "So we can say that we definitely have the capacity to undertake new startups also in the Finnish market."}, {"start": 2888, "end": 2891, "text": "And here, regarding the R&D loans."}, {"start": 2891, "end": 2897, "text": "So, from a combined financing perspective on the startups."}, {"start": 2897, "end": 2904, "text": "So, they are not actually tying up a lot of capital when started, since we already own the plot."}, {"start": 2904, "end": 2915, "text": "So, in that sense, we definitely have the capacity to accelerate the startups in the coming months and quarters."}, {"start": 2915, "end": 2926, "text": "That basically comes down to the demand in the market and the certainty of that demand, which is, of course, related to the pre-reservation rates as well."}, {"start": 2926, "end": 2926, "text": "Yeah."}, {"start": 2926, "end": 2927, "text": "And to continue there."}, {"start": 2927, "end": 2930, "text": "So it will write to us."}, {"start": 2930, "end": 2933, "text": "So, it will actually reduce our inventory in terms of plots."}, {"start": 2933, "end": 2936, "text": "And it will be converted into cash on our balance sheet."}, {"start": 2936, "end": 2936, "text": "Exactly."}]}, {"speakerId": "S9", "sentences": [{"start": 2940, "end": 2940, "text": "Okay."}, {"start": 2940, "end": 2942, "text": "Thanks for clarifying that."}, {"start": 2942, "end": 2945, "text": "Then you had some sales to investors now in Q3.<br /><br />"}, {"start": 2945, "end": 2949, "text": "Can you maybe elaborate on how the investor market is looking right now?"}]}, {"speakerId": "S2", "sentences": [{"start": 2949, "end": 2950, "text": "Yeah."}, {"start": 2950, "end": 2951, "text": "The investor market has been active."}, {"start": 2952, "end": 2955, "text": "Small investors are returning to the market."}, {"start": 2955, "end": 2968, "text": "I think what people are seeing is that the interest rates are at a level where investing in residential properties is again seen as lucrative."}, {"start": 2968, "end": 2980, "text": "Also, I would say that investors are noticing that by holding apartments for a year or two, they will benefit from the momentum of price developments in the coming years."}, {"start": 2980, "end": 2983, "text": "So, we have active discussions there."}, {"start": 2983, "end": 3000, "text": "And I would say that, already in Q2 we had those, and during Q3, the dialogue and the number of individual dialogues increased, suggesting that from that perspective, the investor market is opening."}, {"start": 3000, "end": 3007, "text": "The investor market, where we discuss the full project, is still slow."}, {"start": 3007, "end": 3010, "text": "And there, that market hasn't opened."}, {"start": 3010, "end": 3016, "text": "And due to several reasons, we may expect to see that again."}, {"start": 3016, "end": 3018, "text": "We expect activation to occur next year."}]}, {"speakerId": "S9", "sentences": [{"start": 3022, "end": 3022, "text": "Okay."}, {"start": 3022, "end": 3023, "text": "Excellent."}, {"start": 3023, "end": 3024, "text": "That's everything from me."}, {"start": 3024, "end": 3025, "text": "Thank you."}, {"start": 3025, "end": 3025, "text": "Yeah."}]}, {"speakerId": "S2", "sentences": [{"start": 3025, "end": 3025, "text": "Thank you."}, {"start": 3025, "end": 3026, "text": "Thank you, Emil."}]}, {"speakerId": "S3", "sentences": [{"start": 3031, "end": 3037, "text": "There are no more questions at this time, so I hand the conference back to the speakers."}]}, {"speakerId": "S1", "sentences": [{"start": 3038, "end": 3040, "text": "As there are no more questions."}, {"start": 3040, "end": 3045, "text": "We thank you all for participating and wish you a great rest of the day."}]}, {"speakerId": "S2", "sentences": [{"start": 3045, "end": 3045, "text": "Thank you."}, {"start": 3045, "end": 3045, "text": "Thank you."}, {"start": 3045, "end": 3046, "text": "Thank you."}]}], "speakers": [{"speakerId": "S1", "name": "Essi Nikitin"}, {"speakerId": "S2", "name": "Heikki Vuorenmaa"}, {"speakerId": "S3", "name": "Operator"}, {"speakerId": "S4", "name": "Unknown 1"}, {"speakerId": "S5", "name": "Ansi Rousey"}, {"speakerId": "S6", "name": "Svante Krokfoss"}, {"speakerId": "S7", "name": "Unknown 2"}, {"speakerId": "S8", "name": "Olli Koponen"}, {"speakerId": "S9", "name": "Emily Aymonin"}], "id": "6723476dddb6a3830b84f229", "createdAt": "2024-10-31T09:01:33.768Z", "updatedAt": "2024-10-31T09:01:33.768Z", "langCode": "en", "transcriptType": "ENHANCED", "amberscriptJobId": null, "speechmaticsJobId": "z2qqqdvy3t", "eventId": "67000e138713f778b0be8ecd"}