Slide 1: Half-year report 1-6/2021
TRIPLA WORKERY EAST, HELSINKI, FINLAND Half-year report 1-6/2021 Markku Moilanen − 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: Our focus has been on preventive safety actions
AS OY HELSINGIN BIRGER, HELSINKI, FINLAND Our focus has been on preventive safety actions COMBINED LOST TIME INJURY FREQUENCY Vigorous health and safety measures during COVID-19 pandemic 11 10.2 Annual safety week 10 held in May 9 8 Management walks and 2Q20 3Q20 4Q20 1Q21 2Q21 safety observations p
Slide 4: Q2: Satisfactory quarter driven by good housing results
NAUJASIS SKANSENAS, VILNIUS, LITHUANIA Q2: Satisfactory quarter driven by good housing results Group adjusted operating profit Good results in housing segments, €30 Infrastructure at loss due to margin reductions million (5) Solid operating cash flow after investments Balance sheet €109 strengthened
Slide 5: Answering to customer needs and ensuring solid market position
PIKKUSIRKKU, RIIHIMÄKI, FINLAND Answering to customer needs and ensuring solid market position ESTIMATED APARTMENT START-UPS TREND: 4,000 Annual growth ~40% 2021 vs. 2020 2,000 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Actual Estimate 5 Half-year report 1-6/2021
Slide 6: Measures to improve performance progressed at a fast pace
TRIPLA, HELSINKI, FINLAND Measures to improve performance progressed at a fast pace 1 Project management 2 Operating model 3 Infrastructure strategy 6 Half-year report 1-6/2021
Slide 7: Our future Infrastructure will be somewhat smaller, but clearly more predictable and profitable
TAMPERE LIGHT RAIL, TAMPERE, FINLAND Our future Infrastructure will be somewhat smaller, but clearly more predictable and profitable Strategic role at YIT Clear synergy benefits More focused Selectivity in projects 7 Half-year report 1-6/2021
Slide 8: Q2 results
TRIPLA, HELSINKI, FINLAND Q2 results 8 Half-year report 1-6/2021
Slide 9: Order book strengthened q-o-q
Order book strengthened q-o-q REVENUE, € million ORDER BOOK, € million 975 4,074 3,831 3,890 3,716 3,528 700 733 687 606 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 9 Half-year report 1-6/2021
Slide 10: Profitability improved, variation between segments
Profitability improved, variation between segments ADJUSTED OPERATING PROFIT ADJUSTED OPERATING PROFIT, € million PER SEGMENT, € million 56 2Q20 2Q21 41 30 19 21 Q2 adjusted 6 4 16 operating profit 2 1 1 3 margin 5 4.1% (0.7) -12 -14 Housing FIN Housing RUS Business BP Infra- IN Partnership PP 2Q20
Slide 11: Very good results in housing segments
Very good results in housing segments DEVELOPMENT OF ADJUSTED OPERATING PROFIT, € million Operational Project portfolio performance reviewed, margin continued reductions in stabilising some projects Strong sales, Improved improved margins margins and and higher good sales completions 30 2Q20 Housing
Slide 12: Strong cash flow of €109m
Strong cash flow of €109m OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million Included cash flow of €283m from sale of Nordic paving and mineral aggreates businesses -15 -30 -28 -37 -36 -9 247 146 -3 -6 109 -2 70 -13 -9 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q
Slide 13: Net interest-bearing debt -51% y-o-y
Net interest-bearing debt -51% y-o-y NET INTEREST-BEARING DEBT, MATURITY STRUCTURE OF INTEREST- € million BEARING DEBT1, € million 2Q21 1Q21 715 740 628 439 121 353 100 66 58 50 9 2Q20 3Q20 4Q20 1Q21 2Q21 2021 2022 2023 2024 2025 2026- 1 Excluding housing company loans related to unsold apartments,
Slide 14: Gearing remains below strategic target level of <50%
Gearing remains below strategic target level of <50% EQUITY RATIO AND NET DEBT / ADJUSTED EBITDA RATIO GEARING RATIO, % AND INTEREST COVER RATIO 100% 6 5 80% 4.2 4 60% Gearing target <50% 3 40% 41% 2 35% 2.2 20% 1 0% 0 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Gearing Equity ratio Net debt /
Slide 15: Outlook
TRIPLA, HELSINKI, FINLAND Outlook 15 Half-year report 1-6/2021
Slide 16: Q3 market outlook stable
Q3 market outlook stable Housing Real estate Infrastructure market market market Finland 73% Russia Baltic countries Central European countries Sweden Q2/2021 market environment* Q3/2021 market outlook* Good Normal Weak Improving Stable Weakening 16 Half-year report 1-6/2021 *Estimates of the market
Slide 17: Mitigation action taken to minimise impacts of material cost inflation
AS OY HELSINGIN BIRGER, HELSINKI, FINLAND Mitigation action taken to minimise impacts of material cost inflation BUILDING COST INDEX MITIGATION ACTIONS AT YIT 110 Index 2015=100 105 100 Procurement practices 95 Total index Labour Materials Services 140 Pricing and Index 2015=100 125 contractual prac
Slide 18: Number of completions reaching bottom in Q3, completions expected to peak again in Q4
Number of completions reaching bottom in Q3, completions expected to peak again in Q4 ESTIMATED COMPLETIONS OF CONSUMER APARTMENT PROJECTS UNDER CONSTRUCTION, units In addition, 1,654 revenue from apartments under construction 1,500 recognised over time (POC): 1,000 • 2,049 for investors 1,200 • 4,3
Slide 19: Guidance for 2021
Guidance for 2021 Housing FIN&CEE • Q3 completions down to ~300 units (874) Group adjusted operating profit • Q4 completions at a high level Housing Russia to be • Solid underlying performance to continue higher Business premises • Performance continues to stabilise than in 2020 Infrastructure • Imp
Slide 20: Our management team continues to strengthen
Our management team continues to strengthen ILKKA TOMPERI PASI TOLPPANEN TUOMAS MÄKIPESKA Executive Vice President Executive Vice President Chief Financial Officer Partnership properties Infrastructure as of February 2022 as of August 2021 as of August 2021 20 Half-year report 1-6/2021
Slide 21: Management agenda for H2
TRIPLA, HELSINKI, FINLAND Management agenda for H2 1 Continue actions to stabilise performance, implement new operating model 2 Develop sharpened strategy 3 Take proactive actions in health and safety, develop sustainability roadmap 21 Half-year report 1-6/2021
Slide 22: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Tommi Järvenpää YIT’s Q3 interim Vice President, Investor Relations report will be +358 40 576 0288 tommi.jarvenpaa@yit.fi published on Fri Hanna Valonen Investor Relations Specialist 29 Oct 2021 +358 400 846 556 Follow YIT IR ha
Slide 23: Appendices
TRIPLA, HELSINKI, FINLAND Appendices 23 Half-year report 1-6/2021
Slide 24: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Housing completion estimates IV. Share ownership V. Debt structure VI. Investment portfolio KEILALAMPI, ESPOO, FINLAND 24 Half-year report 1-6/2021
Slide 25: I. Key figures
I. Key figures € million 4-6/21 4-6/20 1-6/21 1-6/20 1-12/20 Revenue 733 700 1,339 1,407 3,069 Operating profit 25 0 40 -4 35 Operating profit margin, % 3.5 0.0 3.0 -0.3 1.1 Adjusted operating profit 30 5 51 13 85 Adjusted operating profit margin, % 4.1 0.7 3.8 0.9 2.8 Result before taxes 17 -8 23 -
Slide 26: II. Sales and start-ups 2019-2021: Housing Finland
Housing Finland II. Sales and start-ups 2019-2021 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 1200 1,091 583 1000 932 1,023 897 845 1000 907 546 267 863 539 428 835 800 261 717 725 799 247 766 800
Slide 27: II. Sales and start-ups 2019-2021: Housing CEE
Housing CEE II. Sales and start-ups 2019-2021 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 1 1000 apartments further to consumers (1Q20: 112) 700 634 623 600 368 100 800 523 665 500 523 523
Slide 28: II. Sales and start-ups 2019-2021: Housing Russia
Housing Russia II. Sales and start-ups 2019-2021 SOLD APARTMENTS, units APARTMENT START-UPS, units 1600 1,461 140% 1400 1,281 1400 1200 502 120% 1200 1,153 1000 100% 906 1000 928 862 320 807 787 819 800 775 772 80% 725 750 779 807 787 800 722 300 662 571 594 72% 600 548 66% 60% 600 62% 320 483 582 5
Slide 29: IV. Share ownership, 30 June 2021
IV. Share ownership*, 30 June 2021 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE- MAJOR SHAREHOLDERS REGISTERED AND NON-FINNISH OWNERSHIP 47,491 46,696 % OF SHARE 46,704 SHAREHOLDERS SHARES 43,752 44,312 CAPITAL 43,619 43,178 41,944 25,100,000 11.89 40,016 1. Tercero Invest AB 36,547 36,064 2. Varma M
Slide 30: V. Debt structure, 30 June 2021
V. Debt structure, 30 June 2021 DISTRIBUTION OF INTEREST RATE DISTRIBUTION OF INTEREST-BEARING DEBT INTEREST-BEARING DEBT1 7% 28% 29% 41% €713 million 0% 59% 15% 21% Bonds Commercial papers Housing company loans related to unsold apartments Fixed rate Floating rate Loans from financial institutions
Slide 31: VI. Investment portfolio and estimated timelines
Partnership properties VI. Investment portfolio and estimated timelines YIT’S OWNERSHIP YIT’S EQUITY FAIR VALUATION COMPLETED AND ONGOING > €2 billion INVESTMENT STARTED Equity investments COMMITMENT Tripla Mall Ky 38.75% 117 M€ 4Q19 Associated companies and joint ventures Tieyhtiö Vaalimaa Oy (PPP
Slide 32: Together we can do it.
Together we can do it.