Slide 1: Interim report January-March 2022
Interim report January-March 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: Q1 – solid quarter
Q1 – solid quarter With our focused We are selling our Balance sheet strategy, we utilised businesses in remains strong our capabilities Russia successfully 3
Slide 4: Our profitability improved markedly
Our profitability improved markedly Revenue, Adjusted EBIT, Adjusted EBIT-margin € million € million 562 518 22 4.2 15 2.7 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 4
Slide 5: All segments in the black
All segments in the black Housing Decisive actions well Transformation Stable result in continued strong under way in progressed in Property performance Business Infrastructure Development Premises Adj. EBIT Adj. EBIT Adj. EBIT Adj. EBIT €21 €1 €2 €1 million (14) million (-1) million (-1) million (2
Slide 6: Strategy execution continued
FOCUS • Investments in attractive urban plots continued • Ongoing selectiveness in tendering progressed • Business portfolio streamlined by the sale of the Russian operations Strategy PRODUCTIVITY execution • New operating model implemented – annual savings of EUR 15-20 million by 2023 expected cont
Slide 7: Land bank supports our strategic objectives
Land bank supports our strategic objectives Most significant land bank acquisitions in Q1 Land bank exposure Housing units 10,900 Kladno Espoo Järvenpää The Czech Republic Finland Finland 11,200 430 270 70 housing units housing units housing units 4,900 4,900 7
Slide 8: We are well positioned to achieve our financial targets for 2025
>6% EBIT 3.2% 3.5% 2.8% > 6% 2020** 2021* LTM* 2025 We are well positioned to GEARING 68% 41% <50% achieve our 30% financial < 50% 2020 2021 Q1/22 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 strengthened; balance sheet remains strong
Profitability strengthened; balance sheet remains strong 9 Konepaja, Helsinki, Finland
Slide 10: Q1 in numbers
Q1 in numbers Order book Adjusted EBIT Adjusted Net debt strengthened to increased to EBIT-margin decreased to €3.8 €22 increased to €338 billion million 4.2% million (3.5) (15) (2.7) (439) 10
Slide 11: Financial information for 2021 restated
Operating model change • 4 reportable segments: Housing, Business Premises, Infrastructure and Property Development • Wind power development from Infrastructure to Property Development Financial • Trigoni costs from Housing to Property Development information for • Baltics’ Infrastructure business t
Slide 12: The financial impacts of the sale of the Russian businesses
Q1 • Impairment of €152 million reported as part of discontinued The financial operations impacts of the • Result for the period including discontinued operations -€133 million sale of the Russian Accumulated RUB/EUR translation difference businesses • -€308 million at the end of Q1 • To be booked t
Slide 13: Strong order book; revenue decreased due to lower apartment completions
Strong order book; revenue decreased due to lower number of apartment completions Order book, € million Revenue, € million 3,885 3,847 3,756 870 3,506 3,653 685 562 535 518 1Q21 2Q21 3Q21 4Q21 Q1/22 1Q21 2Q21 3Q21 4Q21 Q1/22 13 Hiekkaharju water tower, Vantaa, Finland
Slide 14: Profitability strengthened with improvements in operational performance
Adjusted EBIT bridge per segment, € million Positive one-offs Profitability Better sales mix in comparative period strengthened and improved margins 22 with Transformation improvements progressed in operational 4.2% 4.2% performance 2.7% 1Q21 Housing Business Infra- Property Other Q1/22 Premises str
Slide 15: Capital employed decreased y-o-y
Capital employed decreased y-o-y Operating cash flow after investments, Capital employed, continuing € million operations, € million 1,274 1,240 1,207 1,176 1,142 133 109 70 -23 -41 1Q21 2Q21 3Q21 4Q21 Q1/22 1Q21 2Q21 3Q21 4Q21 Q1/22 15
Slide 16: 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 31 Mar 21 31 Mar 22 Other interest-bearing debt 41 149 73 Interest-bearing receivables 137 Bonds 199 319 Cash and cash equivalents 100 Loa
Slide 17: Our strong balance sheet leaves us room for manoeuvre
Net interest-bearing debt Gearing 862 81% 628 68% Our strong 41% € million 303 338 30% balance sheet leaves us 2019 2020 2021 Q1/22 2019 2020 2021 Q1/22 room for Interest cover ratio Equity ratio manoeuvre 40% 34% 33% 34% 5.8 3.5 4.0 3.0 2019 1 2020 1 2021 Q1/22 2019 2020 2021 Q1/22 Interest cover r
Slide 18: Good start for the year
Good start for the year Our profitability Our balance Our order book improved sheet remains is healthy strong 18
Slide 19: We expect our profitability to improve in 2022
We expect our profitability to improve in 2022 19 Konepaja, Helsinki, Finland
Slide 20: Market outlook is subdued in the short term
Market outlook Infra- is subdued in Housing market Real estate market structure market the short term Finland Baltic countries Central Eastern European countries Sweden Q1 market environment Short-term market outlook Strong Normal Weak Improving Stable Weakening 20 Mall of Tripla, Helsinki, Finland
Slide 21: Some material prices have continued to increase due to the crisis in Ukraine
Material cost indices (1.1.2021 – 15.3.2022) Source: Statistics Finland 120 Some material 115 110 prices have 105 continued to 100 increase due 95 90 to the crisis in 85 Ukraine… 80 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 2021 2022 Steel structures Windows and doors Prefab concrete Wood structures 21
Slide 22: …but the direct impact is limited overall
…but the direct impact is limited overall Mitigating actions: • Customer relations Average apartment building price breakdown in Finland management • Contract management • Procurement 30% 20% Materials1 Rebars and steel structures, windows and doors, wood structures2 1 Based on company´s own estimat
Slide 23: COVID-19 pandemic reflected in 2022 completions
COVID-19 pandemic reflected in 2022 completions Estimated completions of consumer apartment projects under construction, housing units In addition, revenue from apartments under construction recognised over time (POC): 400 • 2,074 units for investors 1,654 621 1,181 850 137 29 300 1,100 2,579 0 2,06
Slide 24: Apartment completions to remain low in 2022 but increase in 2023
Consumer apartment start-ups and completions, Finland and Central Europe, rolling 12 months, units Apartment Started for consumers completions to 5,000 Completed for consumers remain low in 4,000 2022 but 3,000 increase 2,000 in 2023 1,000 Cautious start-up levels at the beginning of the COVID-19 pa
Slide 25: 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 26: Foundation is set, it is time to execute
Foundation is set, it is time to execute Mid- and long-term Our strategy helps We continue prospects for our us to stay focusing on our industry remain competitive even if profitable core and positive the market executing our weakens strategy 26
Slide 27: Additional information
Additional information Follow YIT IR on Twitter YIT Investor Relations YIT’S FINANCIAL REPORTING twitter.com/ investorrelations@yit.fi IN 2022 YITInvestors Tommi Järvenpää Vice President, Investor Relations Half-year report 2022 28 July +358 40 576 0288 Interim report Q3/2022 27 October tommi.jarven
Slide 28: Appendices
TRIPLA, HELSINKI, FINLAND Appendices 28
Slide 29: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Share ownership IV. Debt structure V. Property Development higlights KEILALAMPI, ESPOO, FINLAND 29 Interim report Q1/2022
Slide 30: I. Key figures
I. Key figures € million 1-3/22 1-3/21 1-12/21 Revenue 518 562 2,652 Operating profit 22 10 56 Operating profit margin, % 4.2 1.7 2.1 Adjusted operating profit 22 15 85 Adjusted operating profit margin, % 4.2 2.7 3.2 Result before taxes 14 0 22 Result for the period, continuing operations 12 -1 6 Re
Slide 31: II. Sales and start-ups 2019-Q1/2022 – Housing Finland
The Housing segment in Finland II. Sales and start-ups 2019-Q1/2022 SOLD APARTMENTS, units APARTMENT START-UPS, units 1800 1600 1,481 1,637 1400 1,372 1,080 1600 993 1,274 1,305 939 1400 546 539 1200 1,131 1,239 583 1,007 1200 1,091 583 1000 932 955 1,023 1,058 897 427 845 390 907 546 929 427 1000 2
Slide 32: II. Sales and start-ups 2019-Q1/2022 – Housing CEE
The Housing segment in Central Eastern European countries II. Sales and start-ups 2019-Q1/2022 SOLD APARTMENTS, units APARTMENT START-UPS, units 1200 1000 951 946 1,096 900 588 565 998 1000 800 700 634 623 800 600 368 665 523 100 639 479 600 590 500 442 523 523 209 400 357 98 374 339 98 5 363 381 34
Slide 33: III. Share ownership, 31 March 2022
III. Share ownership*, 31 March 2022 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE- MAJOR SHAREHOLDERS REGISTERED AND NON-FINNISH OWNERSHIP 47,491 % OF SHARE 46,704 45,839 45,279 SHAREHOLDERS SHARES 43,752 44,312 CAPITAL 43,619 43,178 41,944 1. Tercero Invest AB 25,550,000 12.10 40,016 2. Varma Mutual
Slide 34: IV. Debt structure, 31 March 2022
IV. Debt structure, 31 March 2022 DISTRIBUTION OF INTEREST RATE DISTRIBUTION OF INTEREST-BEARING DEBT INTEREST-BEARING DEBT1 41 222 199 €729 47% million 53% 117 150 IFRS 16 Lease liabilities Housing company loans related to unsold apartments Loans from financial institutions Fixed rate Floating rate
Slide 35: V. Investment portfolio and development highlights, 31 March 2022
Property Development V. Investment portfolio and development highlights, 31 March 2022 INVESTMENT PORTFOLIO Change from Change from EUR million Value1 31 Dec 20212 31 Mar 20212 Housing 60 0 6 Commercial 210 4 13 Infra 6 -1 -1 Total 276 3 17 1 Book value of Property Development´s equity investment in
Slide 36: Together we can do it.
Together we can do it.