Sampo Oyj · OMXHEX:SAMPO
Sampo Oyj — H1 2024 Earnings Presentation
71 slides from Sampo Oyj's earnings presentation, Aug 7, 2024
Slide 1: Investor Presentation January–June 2024
Investor Presentation January–June 2024 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasonable, no assuran
Slide 3: Sampo Group H1/2024 results
Sampo Group H1/2024 results 7 August 2024 7 August 2024 3
Slide 4: H1/2024: Solid performance driven by continued growth
H1/2024: Solid performance driven by continued growth H1/2024 operating EPS Continued strong FX-adjusted top line growth of 11%, supported by all business areas 1.07 +2% 1.09 -3% +3% +1% Underlying margin trends remained positive, with stable-to- easing claims inflation Strong performance in the UK,
Slide 5: Continued strong top line growth in all business areas
Continued strong top line growth in all business areas Group FX-adjusted top line growth • Group top line growth driven continued robust development in H1/2024 Q2/2024 both Nordics and the UK Group total 11% 11% • Growth in Private supported by personal insurance and property, while retention remain
Slide 6: Key developments in Sampo's P&C operations
Key developments in Sampo’s P&C operations Premium growth and pricing Claims cost development ✓ The Nordic P&C market remains disciplined, with dynamics ✓ Nordic claims inflation remained stable in the lower part of the broadly unchanged year-to-date 4-5% range ✓ Nordic price increases ahead of clai
Slide 7: Solid underlying performance offset by severe weather and large claims
Solid underlying performance offset by severe weather and large claims H1: UW result and combined ratio Q2: UW result and combined ratio • Group underlying combined ratio improved by 1.5%-p, driven by EURm EURm solid development both in the Nordics and in the UK 306 +5% 321 598 -3% 580 • Severe weat
Slide 8: Robust growth in Private, driven by non-motor lines
Robust growth in Private, driven by non-motor lines H1: UW result and combined ratio Q2: UW result and combined ratio • FX-adjusted GWP growth of 6.7% in H1, driven by continued EURm 254 EURm 149 -11% 226 +17% strong momentum in non-motor lines, while retention remained 128 high and stable at 89 per
Slide 9: Pricing excellence drives stable Nordic margins and profitable growth
Pricing excellence drives stable Nordic margins and profitable growth • Overall Nordic claims inflation has stabilised in the lower part of the 4-5% Motor spare parts inflation stable, with recent signs of moderation range, although still elevated in motor (property at lower levels) Motor claims sev
Slide 10: Strong growth and underwriting in the UK
Strong growth and underwriting in the UK • Continued strong FX-adjusted top line growth of 22% on the H1: UW result and operating ratio Q2: UW result and operating ratio back of price increases in 2023 and portfolio growth EURm EURm +49% 80 +37% 48 • Total live customer policies up 6% year-on year,
Slide 11: Hastings and If run-rate benefits has been realised
Hastings and If run-rate benefits has been realised • Run-rate benefits of EUR 45 million achieved according to schedule Identified pre-tax benefits of EUR >45 million Capital management EUR >15 mn 100% • Fraud detection and claims handling being the main operational drivers Pricing ~30% Collaborati
Slide 12: Solid growth in corporate lines, Q2 results affected by large claims
Solid growth in corporate lines, Q2 results affected by large claims Commercial • GWP growth supported by successful 1 January renewals and high and stable retention H1: UW result and combined ratio Q2: UW result and combined ratio EURm EURm 115 63 • Commercial saw 5.9% and Industrial 10.4% FX-adjus
Slide 13: Investment returns driven by higher running yields and equities
Investment returns driven by higher running yields and equities • Net investment income increased 32% to EUR 478 million, Group investment returns and investment mix supported by higher running yields and strong equity portfolio EURm 273 194 11 481 4% performance 9% Fixed 15.3% income • Total invest
Slide 14: Solvency and leverage remained well within target
Solvency and leverage remained well within target Sampo Group Solvency II ratio, % Sampo Group financial leverage, % Own funds: EURm 6,201 EURm 5,695 IFRS equity: EURm 7,971 EURm 7,349 SCR: EURm 3,338 EURm 2,962 Financial debt: EURm 2,594 EURm 2,599 220% 30% 18% -24% Target: <30% 2.2 % 28.3 % 210% 2
Slide 15: Performance against financial targets and outlook
Performance against financial targets and outlook Target for 2024-2026 H1/2024 Outlook for 2024 Operating EPS growth (period average): >7% 2% Following the first half result, Sampo has maintained its 2024 outlook for a Group combined ratio of 83–85 per cent. Combined ratio: <85% (annual) 85.8% The o
Slide 16: Combination with Topdanmark is a natural next step in Sampo's strategy
Combination with Topdanmark is a natural next step in Sampo’s strategy Completes Sampo ✓ Simplified Sampo group-structure and governance, while 1.25 27% P&C transformation scaling the If P&C operational platform Exchange ratio Implied premium to spot share price (Sampo shares for each (as of 14 June
Slide 17: The combined entity will deliver attractive cash and capital generation
The combined entity will deliver attractive cash and capital generation Deployable capital generation target increased Share buyback announced EPS accretion supporting growth Deployable capital generation 2024-2026 (EURbn) Squeeze-out % of EUR 800m EPS accretion (2025)1 ~6% > EUR 4.5bn > EUR 4.0bn U
Slide 18: Sampo Group
Sampo Group 7 August 2024 18
Slide 19: Financials
SAMPO S GROUP Financials 7 August 2024 19
Slide 20: Results and key figures by quarter
Results and key figures by quarter EURm Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 FY 2023 FY 2022 GWP & brokerage income 2,333 3,297 1,864 1,909 2,081 3,016 8,870 8,375 Insurance revenue, net (incl. Brokerage) 2,057 2,020 1,939 1,911 1,857 1,828 7,535 7,277 Claims incurred and claims handling
Slide 21: Operating result by quarter
Operating result by quarter EURm Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 FY 2023 Underwriting result 321 260 281 284 306 292 1,164 Interest and dividend income 137 143 137 119 140 126 522 Realised gains 41 46 6 73 40 38 156 Unwind of discounting -62 -59 -81 -53 -54 -60 -248 Finance and other
Slide 22: Key result movements Q2/2024
Key result movements Q2/2024 Q2/2024 Q2/2023 Comments - Solid underlying improvement of 1.9%-p, driven by the Nordics and UK Group combined ratio, % 84.4 83.5 - Large claims had a 2.7%-p negative effect - UW result of EUR 321 million negatively affacted by Nordic large claims Group PBT 444 363 - Net
Slide 23: Top line development
Top line development GWP and brokerage income Insurance revenue, net (incl. brokerage) EURm EURm IFRS 4 IFRS 17 IFRS 4 IFRS 17 10,000 8,000 7,535 8,870 7,337 7,277 9,000 6,887 8,375 7,000 1,251 8,136 6,516 1,010 998 7,644 8,000 2,063 830 7,241 1,636 805 1,313 6,000 7,000 1,127 1,326 1,255 1,288 1,10
Slide 24: Underwriting result and combined ratio development
Underwriting result and combined ratio development Underwriting result Combined ratio EURm IFRS 4 IFRS 17 IFRS 4 IFRS 17 1,400 88% 1,314 1,282 104 85.8% 85.8% 1,164 86% 1,200 164 84.6% 1,087 128 83.8% 224 84% 1,031 83.3% 103 1,000 227 128 81.4% 82.1% 194 82% 182 800 230 80% 598 580 78% 600 54 80 985
Slide 25: Net insurance liabilities
Net insurance liabilities Q2/2024 LIC per country and durations 2023 year-end EURm If P&C Topdanmark Hastings Sampo If Sampo Group Group LIC, % Duration, years LIC, % Duration, years Liability for remaining coverage, net 1,139 474 443 2,057 Sweden 31 6.3 22 6.3 Liability for incurred claims, net 5,5
Slide 26: Key sensitivities under IFRS
Key sensitivities under IFRS Quarterly P&L effects, Q2/2024 Sampo EURm If Hastings Group¹ • Loss and combined ratio Effect on quarterly Combined ratio ² ³ Discount rate ±100 bps ± 60-70 bps ± 35 bps ± 60 bps sensitive to changes in discount rates Insurance finance income & expense, net Discount rate
Slide 27: Share count development
Share count development Total share count, million Average number of shares 555.4 546.8 1-12/2020 555,351,850 514.4 501.8 501.8 500.9 1-12/2021 554,316,818 1-12/2022 530,296,202 1-3/2023 511,856,292 1-6/2023 509,913,142 1-9/2023 507,335,008 1-12/2023 505,939,064 1-3/2024 501,796,752 1-6/2024 501,760
Slide 28: Share buybacks development
Share buybacks development Buyback programmes Buybacks by quarter Announced, Executed, Launch Start End EURm EURm Shares repurchased EURm 1. programme 1 Oct 2021 4 Oct 2021 25 Mar 2022 750 750 Total 2021 8,539,956 380 2. programme 30 Mar 2022 31 Mar 2022 17 May 2022 250 228 Total 2022 32,442,579 1,4
Slide 29: Investments
SAMPO S GROUP Investments 7 August 2024 29
Slide 30: Sampo Group investment mix, June 2024
Sampo Group investment mix, 30 June 2024 If Topdanmark Hastings Sampo plc Sampo Group Fixed income total 88% 91% 98% 73% 87% Credit bonds, funds and loans 57% 3% 69% 8% 45% Covered bonds 18% 81% 0% 0% 22% Government bonds 8% 0% 5% 0% 5% Index-linked bonds 4% 4% 0% 0% 3% Money market and cash 1% 3% 2
Slide 31: Net investment income H1/2024
Net investment income H1/2024 EURm If P&C Topdanmark Hastings Holding Eliminations Sampo Group Fixed income 192 22 22 15 -4 247 Equities 22 3 0 0 0 26 Funds 3 3 1 0 0 7 Interest & dividend income 217 29 23 15 -4 280 Fixed income -2 -2 -1 0 0 -5 Equities 114 9 0 1 0 124 Funds 46 0 1 0 0 47 Net gains
Slide 32: Net investment income Q2/2024
Net investment income Q2/2024 EURm If P&C Topdanmark Hastings Holding Eliminations Sampo Group Fixed income 95 11 12 8 -2 123 Equities 9 0 0 0 0 10 Funds 2 1 1 0 0 4 Interest & dividend income 106 13 12 8 -2 137 Fixed income 16 -2 -1 0 0 14 Equities 30 3 0 -31 0 2 Funds 11 0 1 0 0 12 Net gains or lo
Slide 33: Net financial result bridge H1/2024
Net financial result bridge H1/2024 600 500 -120 32 -16 -1 -16 400 -87 88 166 300 280 11 23 IFIE 29 478 EUR -33 million 445 200 100 217 0 Interest & dividend Net gains or losses Other Net investment Unwind of Changes in discount Indexation of Net financial result income income discounting rates annu
Slide 34: Net financial result bridge Q2/2024
Net financial result bridge Q2/2024 200 -62 5 180 -9 18 -8 160 28 54 137 -44 140 6 12 120 13 100 183 180 80 IFIE EUR -3 million 60 106 40 20 0 Interest & dividend Net gains or losses Other Net investment Unwind of Changes in discount Indexation of Net financial result income income discounting rates
Slide 35: Financial position
Financial position 7 August 2024 35
Slide 36: Solvency II ratio development
Solvency II ratio development 220% 210% 200% 192% 185% 186% 182% 179% 179% 180% 174% 176% 160% 140% 120% 100% 2019 2020 2021 2022 2023* Q1/2024* Q2/2024 Q2/2024 adj.** Q2/2024 pro-forma*** Solvency II ratio Target range for 2021-2023 (170-190%) Target range for 2024-2026 (150-190%) *) pro forma of d
Slide 37: Solvency II SCR and own funds, June 2024
Solvency II SCR and own funds, 30 June 2024 EURm 6,000 5,695 Solvency II ratio 192% 121 5,000 1,360 288 22 4,000 131 -673 -421 25 T3 3,000 1,617 T2 T1 restricted 2,000 4,193 T1 unrestricted 2,962 1,000 1,994 0 Market risk Insurance risk Counterparty risk Operational risk Diversification LAC of DT Re
Slide 38: Estimated Solvency II ratio sensitivities on market risk factors
Estimated Solvency II ratio sensitivities on market risk factors Pro forma, 30 June 2024 192% 188% 196% 192% 191% 200% 185% 187% 150% 100% 50% 0% Base case Q2/2024 RFR -100 bps RFR +100 bps Spread +100 bps Equity prices -10% Equity prices -20% Equity prices -30% Scenario Symmetric adjustment The Sol
Slide 39: Financial leverage development
Financial leverage development IFRS 4 IFRS 17 Total debt, EURm 4,905 4,210 3,288 3,288 2,604 2,594 2,599 IFRS equity, EURm 12,258 13,464 9,543 10,178 7,687 7,971 7,349 35% 28.6% 23.8% 25.6% 24.4% 25.3% 24.6% 26.1% 28.3% 30% 25% 20% 15% 10% 5% 0% 2020 2021 2022 2022 2023 Q1/2024 Q2/2024 Q2/2024 adj.*
Slide 40: Financial debt, June 2024
Financial debt, 30 June 2024 Sampo plc If Topdanmark Hastings Eliminations* Group, total Sub/hybrid 1,490 132 148 - -127 1,642 Senior bonds 956 - - - - 956 Total 2,464 132 148 - -127 2,599 * Topdanmark EUR 127 million held by If. Key credit Metrics Financial debt, EURm 2,599 IFRS equity, EURm 7,349
Slide 41: Outstanding debt instruments, June 2024
Outstanding debt instruments, 30 June 2024 Sampo Plc Subsidiaries Instrument & Principal Coupon Maturity/call Instrument & Principal Coupon Maturity/call Senior Bond 162 EURm 1.250% 30 May 2025 If P&C - Subordinated 1,500 SEKm Stibor 3M + 1.30% 17 Mar 2026 Senior Bond 313 EURm 1.625% 21 Feb 2028 Top
Slide 42: If
If 7 August 2024 42
Slide 43: GWP growth driven by increased rates and high retention
GWP growth driven by increased rates and high retention H1/2024 GWP growth Q2/2024 GWP growth Key developments • Strong organic GWP growth in H1 2024 (excl. currency effects) of 7.3%, If total 7.3% If total 6.7% with 6.7% growth in Q2 Private 6.7% Private 6.2% • Growth was robust across business are
Slide 44: Nordic underwriting profits supported by healthy growth
Nordic underwriting profits supported by healthy growth H1/2024 combined ratio Key developments • First half 2024 insurance service result of EUR 390 million (427), and Q2 2024 EUR 219 million (210), supported by strong currency adjusted GWP growth • Continued improvement from targeted rate increase
Slide 45: Results by quarter
Results by quarter EURm Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 FY 2023 FY 2022 Gross written premiums 1,407 2,095 1,095 1,100 1,307 1,966 5,468 5,432 Insurance revenue, net 1,297 1,290 1,266 1,263 1,231 1,235 4,996 5,024 Claims incurred, net -806 -926 -772 -802 -761 -759 -3,093 -3,267 Opera
Slide 46: Key figures by quarter
Key figures by quarter Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 FY 2023 FY 2022 Combined ratio, % 83.1 86.8 83.1 84.1 82.9 82.4 83.1 86.6 Cost ratio, % 21.0 20.6 22.2 20.7 21.1 21.0 21.2 21.6 Risk ratio, % 62.2 66.2 60.9 63.4 61.8 61.5 61.9 65.0 Large claims 4.4 -2.9 1.2 3.7 3.1 -2.8 1.3 0.6
Slide 47: Combined ratio and cost ratio development
Combined ratio and cost ratio development Combined ratio Cost ratio IFRS 4 IFRS 17 ~20bps IFRS 4 IFRS 17 21.8% If P&C cost ratio 86.6% 21.6% reduction p.a. 21.5% 21.4% 84.5% 84.9% 21.2% 83.1% 21.1% 82.7% 21.0% 82.1% 81.3% 20.8% 80.3% 2019 2020 2021 2022 2022 2023 H1/2023 H1/2024 2019 2020 2021 2022
Slide 48: Key figures by business area and country
Key figures by business area and country H1/2024 (H1/2023) Private Commercial Industrial Baltic Sweden Norway Finland Denmark Other GWP, EURm 1,605 (1,516) 994 (963) 745 (671) 134 (123) 1,099 (1,031) 1,091 (1,030) 808 (773) 347 (315) 23 (0) Insurance revenue, net, EURm 1,467 (1,405) 670 (649) 325 (3
Slide 49: Key figures by business area and country
Key figures by business area and country Q2/2024 (Q2/2023) Private Commercial Industrial Baltic Sweden Norway Finland Denmark Other GWP, EURm 820 (772) 241 (223) 269 (252) 65 (60) 547 (517) 424 (381) 250 (248) 109 (101) 12 (0) Insurance revenue, net, EURm 738 (703) 335 (322) 160 (152) 60 (54) 419 (4
Slide 50: FX-adjusted GWP quarterly growth by business area and country
FX-adjusted GWP quarterly growth by business area and country Private Commercial Industrial Baltic Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 6.4 0.4 4.9 3.6 7.3 4.4 -1.0 -1.5 7.6 13.0 17.7 6.2 6.6 -2.7 3.5 1.9 2021 3.9 5.8 2.7 2.2 0.6 10.2 3.7 11.8 3.8 8.6 3.2 8.6 4.9 11.3 13.7 14.7 2022
Slide 51: Number of customers, customer satisfaction and retention in Private
Number of customers, customer satisfaction and retention in Private Number of customers, million Customer satisfaction, NPS Customer retention, % households 3.3 3.3 62 3.2 3.2 61 90% 90% 60 89% 89% 58 2021 2022 2023 Q2/2024 2021 2022 2023 Q2/2024 2021 2022 2023 Q2/2024 7 August 2024 51
Slide 52: Nordic new car sales
Nordic new car sales Number of new cars sold, annual development Number of new cars sold, second quarter If P&C had a market share of 878,000 24% in Q2/2024 280 000 841,000 838,000 239 000 -2% 761,000 221 000 211 000 728,000 186 000 182 000 692,000 172 000 677,000 145 000 2017 2018 2019 2020 2021 20
Slide 53: Topdanmark
Topdanmark 7 August 2024 53
Slide 54: Results and key figures
Results and key figures EURm Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 FY 2023 FY 2022 Gross written premiums 276 653 241 252 242 604 1,339 1,308 Insurance revenue, net 361 361 333 321 317 318 1,288 1,255 Claims incurred, net -242 -241 -242 -217 -200 -203 -862 -809 Operating expenses and claim
Slide 55: Hastings
Hastings 7 August 2024 55
Slide 56: Results and key figures by quarter
Results and key figures by quarter EURm Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 FY 2023 FY 2022 Gross written premiums 562 467 440 467 435 363 1,706 1,314 Brokerage revenue 101 93 88 90 97 83 357 322 Insurance revenue, net (incl. brokerage) 399 369 340 327 309 275 1,251 998 Claims incurred a
Slide 57: Operating ratio and underwriting result development
Operating ratio and underwriting result development Operating ratio, % Underwriting result, EURm 10-15% 164 UK UW profit growth p.a. on average 90.8% 89.7% 89.8% 89.6% 87.4% 87.2% 128 128 103 104 80.3% 80 54 2020 2021 2022 2022 2023 H1/2023 H1/2024 2020 2021 2022 2022 2023 H1/2023 H1/2024 7 August 2
Slide 58: Live customer policies development
Live customer policies development Million 4.0 3.5 3.6 3.5 3.1 3.2 0.61 2.8 3.1 0.54 3.0 0.27 0.31 0.41 2.6 2.7 0.21 2.3 0.17 0.16 2.5 0.17 2.0 2.0 0.13 1.5 2.9 3.0 2.8 2.8 2.8 2.5 2.6 2.5 2.2 1.0 1.9 0.5 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2/2024 Motor Home 7 August 2024 58
Slide 59: Holding
Holding 7 August 2024 59
Slide 60: Results by quarter
Results by quarter EURm Q2/2024 Q1/2024 Q4/2023 Q3/2023 Q2/2023 Q1/2023 FY 2023 FY 2022 Net investment income -2 50 -38 5 18 -22 -37 177 Other income 0 0 0 1 0 0 1 132 Other expenses -11 -13 -28 -9 -12 -7 -57 -48 Finance expenses -16 -17 -12 -18 -20 -16 -66 -96 Share of associates’ profit or loss -
Slide 61: Sampo plc balance sheet, June 2024
Sampo plc balance sheet, 30 June 2024 Assets total, EURm 7,834 Liabilities total, EURm 7,834 Liquidity 1,477 CPs issued 0 Investment assets 695 LT senior debt 956 Tangible assets 2 Private placements 0 Fixed income 100 Bonds issued 956 Equity and private equity 592 Subordinated debt 1,490 Equity hol
Slide 62: Sampo Group overview
Sampo Group overview 7 August 2024 62
Slide 63: Sampo's P&C operations have a uniquely attractive profile
Sampo’s P&C operations have a uniquely attractive profile Top line: EUR 8.9 billion Private Commercial Industrial Baltic UK EUR 3.6 bn EUR 2.0 bn EUR 1.0 bn EUR 0.2 bn EUR 2.1 bn Combined ratio: 84.6% Underwriting profit: EUR 1.2 bn UW profit CAGR: 8% ✓ Leading digital sales and ✓ Strong pricing pow
Slide 64: Financial targets, ambitions and capital management framework
Financial targets, ambitions and capital management framework Financial targets Operational ambitions Capital management ➢ Operating EPS growth: >7% • If P&C cost ratio reduction: ~20bps (annual) ➢ Solvency II target range: 150-190% (period average) • If P&C GWP growth in PI: >7.5% (period average)
Slide 65: P&C Insurance market shares
P&C Insurance market shares Norway Q1/2024 Sweden Q4/2023 Nordics Gjensidige 26% LF 30% If & Topdanmark 20% If 21% If 18% Tryg 15% Fremtind 15% Tryg 17% LF 9% Tryg 13% Folksam 16% Gjensidige 9% Storebrand 5% Others 19% OP 5% Others 19% Others 41% Denmark Q1/2023 Finland 2023 Finland Tryg 23% OP 33%
Slide 66: Sampo's ownership structure June 2024
Sampo’s ownership structure 30 June 2024 Largest Finnish-registered shareholders Ownership development 230,000 70% 210,000 Solidium Oy 6.63%* 68% 190,000 Varma Mutual Pension Insurance Company 4.43% 66% 170,000 Ilmarinen Mutual Pension Insurance Company 1.22% 150,000 64% Elo Mutual Pension Insurance
Slide 67: Sampo Group ESG overview
Sampo Group ESG overview 7 August 2024 67
Slide 68: Sampo has committed to set group-level SBTi targets
Sampo has committed to set group-level SBTi targets • Sampo joined the Science Based Targets initiative (SBTi)* in October 2023 to If P&C’s targets approved by SBTi set group-level near-term greenhouse gas emission reduction targets aligned with the Paris Agreement • Sampo’s subsidiaries If, Topdanm
Slide 69: Allocation of direct fixed income and equity investments
Allocation of direct fixed income and equity investments according to the ESG risk categories, Sampo Group excluding Topdanmark and Hastings 30 June 2024 Weighted average ESG risk rating of Sampo Group’s direct fixed income and equity investments (0-100) 15 Market value of Sampo Group’s direct fixed
Slide 70: ESG ratings
ESG ratings Examples of ESG rating agencies Rating and scale Rating distribution and/or ranking Industry best is B-. Rating of Sampo plc: 55/100 Percentile rank of Sampo plc: 87 Industry average: 29/100 7 August 2024 70
Slide 71: Sampo plc
Sampo plc Fabianinkatu 27 00100 Helsinki, Finland Phone: +358 10 516 0100 Business ID: 0142213-3 www.sampo.com @Sampo_plc sampo-plc sampo_oyj 71