Yit Oyj · OMXHEX:YIT
Yit Oyj — Q3 2022 Earnings Presentation
30 slides from Yit Oyj's earnings presentation, Oct 27, 2022
Slide 1: Interim Report 1-9/2022
Interim Report 1-9/2022 Markku Moilanen − President and CEO Tuomas Mäkipeska − 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: Q3 – improved performance
Q3 – improved performance Profitability improved Transformation Substantial in a challenging continued productivity gains business environment successfully achieved 3
Slide 4: Solid quarter in a challenging business environment
Solid quarter in a challenging business environment Revenue, Adjusted EBIT, Adjusted EBIT-margin € million € million % 560 21 3.7 535 11 2.0 Q3/21 Q3/22 Q3/21 Q3/22 Q3/21 Q3/22 4
Slide 5: Stable underlying performance across the segments
Stable underlying performance across the segments Housing Business Infrastructure Property Stable result in a Premises Transformation Development challenging market Transformation progressed Capabilities progressed strengthened 15 Adj. EBIT, € million 14 8 4 2 3 0 -8 Q3/21 Q3/22 Q3/21 Q3/22 Q3/21 Q3
Slide 6: Strategy execution progressing
FOCUS • Selected investments in attractive urban plots continued to safeguard future earnings • Selectiveness in project tendering yielding good results – order book remained strong in a challenging business environment Strategy PRODUCTIVITY execution • Cumulative YTD cost savings from the new opera
Slide 7: We continued to invest in our land bank
We continued to invest in our land bank Most significant land bank acquisitions in Q3 Land bank exposure Housing units 11,300 Warsaw, Kraków, Gdańsk Prague Poland The Czech Republic 11,000 1,100 housing units 150 housing units 6,500 5,200 7
Slide 8: We are well positioned to achieve our financial targets for 2025
>6% 4.1% EBIT 2.8% 3.2% > % 6 2020** 2021* LTM* 2025 We are well positioned to GEARING 68% 69% <50% achieve our 30% financial < 50% 2020 2021 Q3/22 2025 targets for 2025 DIVIDEND 0.14 0.16 Stable growth 2020 2021 2025 *Adj.EBIT 8 **Adj. EBIT. Not restated and therefore not fully comparable.
Slide 9: Profitability improved; balance sheet remained strong
Profitability improved; balance sheet remained strong 9
Slide 10: Q3 in numbers
Q3 in numbers Order book Adjusted EBIT Adjusted Net debt increased to amounted to EBIT-margin increased to €4.1 €21 increased to €590 billion million 3.7% million (3.9) (11) (2.0) (411) 10
Slide 11: Order book remained strong; revenue increased in all segments
Order book remained strong; revenue increased in all segments Order book, € million Revenue, € million 3,885 3,847 3,756 4,067 4,089 870 535 518 545 560 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 11
Slide 12: Profitability improvement driven by continued transformation and productivity gains
Adjusted EBIT bridge per segment, € million Profitability 21 improvement Softer consumer Stable underlying driven demand and a weaker sales mix performance. One-offs in Q3/21 by continued 11 transformation and productivity Transformation progressed gains. Q3/21 Housing Business Infra- Property Other
Slide 13: Capital employed increased y-o-y
Capital employed increased y-o-y Operating cash flow after investments, Capital employed, continuing € million operations, € million Impacted by self-developed projects, investments in plots 1,444 and increase in number of 1,240 1,286 133 1,142 1,176 unsold completed apartments -23 -41 -133 -149 Q3/
Slide 14: Our debt structure leads to a low financial risk profile
Our debt structure leads to a low financial risk profile Distribution of interest-bearing debt, Maturity structure of interest-bearing debt1, € million € million 30 Sept. 21 30 Sept. 22 150 Other interest-bearing debt 47 63 Interest-bearing receivables 138 Bonds 199 125 Cash and cash equivalents 100
Slide 15: Our balance sheet remained strong
Net interest-bearing debt Gearing 862 81% 628 68% 69% 590 € million 303 30% Our balance 2019 2020 2021 Q3/22 2019 2020 2021 Q3/22 sheet remained Interest cover ratio Equity ratio strong 5.8 5.9 34% 33% 40% 36% 3.5 3.0 1 1 2019 2020 2021 Q3/22 2019 2020 2021 Q3/22 15 1 The comparability is affected b
Slide 16: Improved performance drove our earnings growth
Improved performance drove our earnings growth Our Our balance Our order profitability sheet remained book is improved strong healthy 16
Slide 17: We expect our profitability to improve in 2022
We expect our profitability to improve in 2022 17
Slide 18: Market outlook remains subdued in the short term
Infra- Housing Real estate structure Market outlook market market market Finland remains subdued in Baltic countries the short term Central Eastern Europe Sweden Q3 market environment Short-term market outlook Good Normal Weak Improving Stable Weakening 18
Slide 19: In Finland, building costs rose by 6.2%
Building cost index (1.1.2021 – 30.9.2022) Source: Statistics Finland 120 In Finland, 115 building costs 110 rose by 6.2% 105 y-o-y, but the 100 95 situation 90 continued to 85 stabilise 80 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 2021 2022 Total index Labour Materials Services 19
Slide 20: Completions of consumer apartments to decrease in 2022
Completions of consumer apartments to decrease in 2022 In addition, Estimated completions of consumer apartment projects under construction, revenue from apartments under construction recognised housing units over time (POC): Exceptionally • 2,079 units for investors high number of completions in We
Slide 21: Our 2022 Group adjusted operating profit expected to be higher than in 2021
Housing Our 2022 • Completions of consumer apartments to decrease Group Business Premises adjusted • Performance continues to improve Infrastructure operating • Will gradually improve profit expected • Still impacted by certain legacy low-margin projects to be higher Property Development than in 202
Slide 22: We focus firmly on executing our strategy and securing our earnings
We focus firmly on executing our strategy and securing our earnings We will pursue Our investments Our diversified further opportunities are geared towards business model to increase future growth and provides us balance efficiencies opportunities in a challenging market 22
Slide 23: Additional information
Additional information Follow YIT IR on Twitter YIT Investor Relations YIT’S FINANCIAL REPORTING twitter.com/ investorrelations@yit.fi AND AGM IN 2023 YITInvestors Samu Heikkilä Investor Relations Manager Full-year result 2022 10 February +358 44 581 7979 Financial Statements Week 8/2023 samu.heikki
Slide 24: Appendices
Appendices 24
Slide 25: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Property Development highlights 25 Interim Report Q3/2022
Slide 26: I. Key figures
I. Key figures € million 7-9/22 7-9/21 1-9/22 1-9/21 1-12/21 Revenue 560 535 1,623 1,782 2,652 Operating profit 16 0 60 31 56 Operating profit, % 2.9 0.0 3.7 1.7 2.1 Adjusted operating profit 21 11 67 49 85 Adjusted operating profit margin, % 3.7 2.0 4.1 2.8 3.2 Result before taxes 11 -8 38 5 22 Res
Slide 27: II. Sales and start-ups Q2/2019-Q3/2022 - Housing Finland
The Housing segment in Finland II. Sales and start-ups Q2/2019-Q3/2022 SOLD APARTMENTS, units APARTMENT START-UPS, units 1800 1600 1600 1400 1,274 1,305 1400 546 539 1200 1,131 1,239 583 1,007 1200 1,091 583 1000 932 955 1,023 1,058 897 427 968 845 390 907 546 929 427 1000 267 539 428 835 422 717 72
Slide 28: II. Sales and start-ups Q2/2019-Q3/2022 - Housing CEE
The Housing segment in Central Eastern Europe II. Sales and start-ups Q2/2019-Q3/2022 SOLD APARTMENTS, units APARTMENT START-UPS, units 1200 1000 951 946 1,096 900 998 1000 800 700 634 623 800 600 665 523 639 479 480 600 590 500 442 523 523 516 400 374 339 363 381 348 400 332 249 344 300 334 274 293
Slide 29: III. Investment portfolio and development highlights, 30 Sept. 2022
Property Development III. Investment portfolio and development highlights, 30 Sept. 2022 INVESTMENT PORTFOLIO EUR million Value1 Change 7/22 - 9/222 Change 10/21 - 9/222 Housing 70 8 17 Commercial 208 2 5 Infra 6 – 1 Total 285 10 22 1 Book value of Property Development´s equity investment including
Slide 30: Together we can do it.
Together we can do it.