Slide 1: Interim report January-September 2020
TRIPLA, HELSINKI, FINLAND Interim report January-September 2020 Harri-Pekka Kaukonen − Chairman of the Board Antti Inkilä − Interim President and CEO Ilkka Salonen − CFO
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by, and the information contained herein (unless otherwise indicated) has been provided by YIT Corporation (the “Company”). By attending the meeting or event where this presentation is made, or by reading the presentation slides, you agree to be bound b
Slide 3: More life in sustainable cities
More life in sustainable cities 15 minutes’ city 3 Interim report January-September 2020
Slide 4: Strategic actions to adjust business mix
Strategic actions to adjust business mix A Strengthen development pipeline Increase asset values B • Plot reserve • Service offering in SERVICES • Partnerships co-opeartion with X Sustainable • Project development service partners urban capability development Focus on • Partnerships and Concentrate
Slide 5: Group-wide cornerstones to drive performance and build capabilities
Group-wide cornerstones to drive performance and build capabilities Success with Top performance customers and partners Stepping up Happy people sustainability 5 Interim report January-September 2020 PURJEENTEKIJÄNKUJA, HELSINKI, FINLAND
Slide 6: Financial targets unchanged
Financial targets unchanged ROCE, % GEARING, % DIVIDEND PER SHARE 81 >12 Growing 11 0.27 0.28 54 6 30-50 1 // 2 // // 2018 2019 Target 2018 2019 Target 2018 2019 Target 1pro forma, 2excluding IFRS16 excluding IFRS 16 6 Interim report January-September 2020
Slide 7: Q3: Good results in housing segments supported by strong apartment sales
Q3: Good results in housing segments supported by strong apartment sales Adjusted Business premises operating profit negatively impacted by €16 a margin reduction of the Tripla project million (26) and a write-down Profitability, Coronavirus pandemic: capital efficiency and Proactive adaptation stro
Slide 8: Safety is in the core of our operations
Safety is in the core of our operations COMBINED LOST TIME INJURY FREQUENCY (LTIF), rolling 12 months 12 LTIF, rolling 12 months 10 8 6 10.0 injuries of YIT’s own 4 employees and 2 subcontractors per million hours worked 0 3Q19 4Q19 1Q20 2Q20 3Q20 LTIF (per one million hours worked) LTIF target (<9)
Slide 9: Order book at a good level, margins improving
Order book at a good level, margins improving REVENUE, € million ORDER BOOK, € million 1,152 4,764 4,131 4,074 3,848 3,831 808 708 700 687 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 9 Interim report January-September 2020
Slide 10: Good results in housing segments, offset by a loss in Business premises
Good results in housing segments, offset by a loss in Business premises ADJUSTED OPERATING PROFIT, € million 121 Q3 adjusted operating profit margin 2.4% 26 16 8 5 (3.2) 3Q19 4Q19 1Q20 2Q20 3Q20 10 Interim report January-September 2020 TRIPLA WORKERY EAST, HELSINKI, FINLAND
Slide 11: Strong improvement in Housing Russia
Strong improvement in Housing Russia ADJUSTED OPERATING PROFIT, € million 3Q19 3Q20 16 14 12 10 7 5 3 0 -7 -19 Housing FIN Housing Business Infrastructure Partnership & CEE RUS premises projects properties 11 Interim report January-September 2020 TARMO, ST.PETERSBURG, RUSSIA
Slide 12: Housing Finland and CEE: Strong sales and improved profitability
KONEPAJA, HELSINKI, FINLAND Housing Finland and CEE Strong sales and improved profitability COMPLETED CONSUMER APARTMENTS, units Adjusted operating profit Housing sales 2,000 supported by €16 digitalisation and YIT brand million (14) 1,000 Apartment Living services start-ups at continued to good lev
Slide 13: Housing Russia: Record-high apartment sales
TARMO, ST.PETERSBURG, RUSSIA Housing Russia Record-high apartment sales APARTMENT SALES, units Adjusted Revenue operating profit 1,500 increased by €7 41% million (0) 1,000 Apartment 500 sales Strategic measures +120% proceeding as planned 0 y-o-y 3Q19 4Q19 1Q20 2Q20 3Q20 Continuing units Operations
Slide 14: Business premises: Margin reduction and write-down burdened the result
REDING TOWER 2, BRATISLAVA, SLOVAKIA Business premises Margin reduction and write-down burdened the result ORDER BOOK, € million Adjusted 1,500 operating profit €18 million €-19 margin reduction in Tripla project million (-7) 1,000 500 €7 million Solid and inventory healthy write-down order book 0 3
Slide 15: Infrastructure projects: Stable performance
AALTO-YLIOPISTO METRO STATION, HELSINKI, FINLAND Infrastructure projects Stable performance ORDER BOOK, € million Adjusted Preparations to 1,500 operating profit close-down €10 infrastructure business in million (12) Norway 1,000 Production Order book 500 volumes decreased due decreased in to severa
Slide 16: Partnership properties: Investment portfolio widened
PIKKUSIRKKU, RIIHIMÄKI, FINLAND Partnership properties Investment portfolio widened PORTFOLIO VALUE, € million Adjusted New associated operating profit company established to €5 strengthen housing portfolio million (3) Order book €305 Portfolio value million €260 0 from real estate million managemen
Slide 17: Cash flow negative, improved y-o-y
Cash flow negative, improved y-o-y OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million -22 -30 -37 247 -10 -52 -3 -81 -2 132 -4 -27 -48 -9 -9 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 Associated companies and joint ventures Plot investments 17 Interim report
Slide 18: Strong liquidity position remains
Strong liquidity position remains NET INTEREST-BEARING DEBT, MATURITY STRUCTURE1, € million € million 983 207 942 862 159 715 740 118 0 10 0 3Q19 4Q19 1Q20 2Q20 3Q20 2020 2021 2022 2023 2024 2025- 1 Excluding housing company loans related to unsold apartments, € 194 million, commercial papers, € 215
Slide 19: Financial key ratios weakened slightly
Financial key ratios weakened slightly EQUITY RATIO AND GEARING, % NET DEBT / ADJUSTED EBITDA ratio 5 100% 84% 4 80% 3.8 3 60% 40% 2 20% 31% 1 0% 0 3Q19 4Q19 1Q20 2Q20 3Q20 4Q19 1Q20 2Q20 3Q20 Gearing Equity ratio 19 Interim report January-September 2020
Slide 20: Market outlook stable with limited visibility
Market outlook stable with limited visibility Business Infrastructure Partnership Housing premises projects properties Finland Russia Baltic countries Central European countries Sweden Q3 market situation Q4 market outlook Good Normal Weak Improving Stable Weakening 20 Interim report January-Septemb
Slide 21: Completions expected to peak in Q4
Completions expected to peak in Q4 ESTIMATED COMPLETIONS OF CONSUMER APARTMENT PROJECTS UNDER CONSTRUCTION, units In addition, revenue from 1,740 1,500 apartments under construction recognised 900 over time (POC): 1200 • 2,104 for investors • 5,950 in Russia 2,908 2,600 38 404 218 1,100 100 592 600
Slide 22: Guidance for 2020 reinstated
Guidance for 2020 reinstated During the rest of the year, YIT expects its projects to be completed on schedule despite the second wave of the Group adjusted operating profit coronavirus pandemic. €90-110 However, possible decisions by authorities, such as closing down construction sites million wide
Slide 23: Management agenda
Management agenda SUCCESS WITH TOP PERFORMANCE CUSTOMERS AND PARTNERS Improve project Continue to expand management to drive digital services profitability STEPPING UP SUSTAINABILITY HAPPY PEOPLE Continue to develop Ensure health and climate action plan safety of our people 23 Interim report January
Slide 24: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi YIT’s Q4 financial Tommi Järvenpää Vice President, Investor Relations statements bulletin +358 40 576 0288 will be published on tommi.jarvenpaa@yit.fi Hanna Valonen 3 Feb Investor Relations Specialist +358 400 846 556 hanna.valon
Slide 25: Appendices
HELSINKI-VANTAA AIRPORT, FINLAND 1 Appendices 25 Interim report January-September 2020
Slide 26: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Share ownership IV. Debt structure V. Investment portfolio KEILALAMPI, ESPOO, FINLAND 26 Interim report January-September 2020
Slide 27: I. Key figures
I. Key figures € million 7-9/20 7-9/19 1-9/20 1-9/19 1-12/19 Revenue 687 808 2,094 2,239 3,392 Operating profit -16 18 -20 -17 80 Operating profit margin, % -2.4 2.3 -0.9 -0.7 2.4 Adjusted operating profit 16 26 29 45 165 Adjusted operating profit margin, % 2.4 3.2 1.4 2.0 4.9 Result before taxes -2
Slide 28: II. Sales and start-ups 2019-2020: Housing Finland
Housing Finland II. Sales and start-ups 2019-2020 SOLD APARTMENTS, units APARTMENT START-UPS, units 1800 1600 1,481 1,637 1400 1,372 1,080 1600 993 939 1,274 1400 1200 546 1200 1000 1,091 897 845 1000 907 546 428 863 800 261 717 725 799 247 800 353 728 363 198 664 363 636 600 584 600 644 660 428 198
Slide 29: II. Sales and start-ups 2019-2020: Housing CEE
Housing CEE II. Sales and start-ups 2019-2020 SOLD APARTMENTS, units APARTMENT START-UPS, units 800 Of projects earlier sold to YCE Housing I fund or a 998 JV, and recorded as investor sales, YIT sold 57 1000 apartments further to consumers (3Q19: 83) 700 634 600 368 800 500 665 442 590 600 400 98 3
Slide 30: II. Sales and start-ups 2019-2020: Housing Russia
Housing Russia II. Sales and start-ups 2019-2020 SOLD APARTMENTS, units APARTMENT START-UPS, units 1600 1,461 140% 1400 1,281 1400 1200 502 120% 1200 1000 100% 906 1000 928 862 320 807 800 775 80% 725 750 779 807 800 722 300 662 571 594 600 60% 600 320 483 582 58% 153 54% 400 483 475 48% 40% 418 400
Slide 31: III. Share ownership, 30 September 2020
III. Share ownership, 30 September 2020 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE- MAJOR SHAREHOLDERS REGISTERED AND NON-FINNISH OWNERSHIP % OF SHARE 46,704 45,950 SHAREHOLDERS SHARES 43,752 44,312 44,656 CAPITAL 43,619 43,178 43,215 41,944 24,650,000 11.68 40,016 1. Tercero Invest AB 36,547 36,06
Slide 32: IV. Debt structure, 30 September 2020
IV. Debt structure, 30 September 2020 INTEREST-BEARING DEBT PORTFOLIO, INTEREST RATE DISTRIBUTION OF € million INTEREST PORTFOLIO1 4% 21% 23% 44% 18% 56% 17% 17% Bonds Commercial papers Housing corporation loans related to unsold apartments Fixed rate Floating rate Loans from financial institutions
Slide 33: V. Investment portfolio and estimated timelines
Partnership properties V. Investment portfolio and estimated timelines COMPLETED AND ONGOING > €2 billion YIT’S OWNERSHIP YIT’S EQUITY FAIR VALUATION INVESTMENT STARTED Equity investments COMMITMENT Tripla Mall Ky 38.75% 117 M€ 4Q19 Associated companies and joint ventures Tieyhtiö Vaalimaa Oy (PPP p
Slide 34: Together we can do it.
Together we can do it.