Yit Oyj · OMXHEX:YIT
Yit Oyj — Investor Day (September 2018)
25 slides from Yit Oyj's investor day presentation, Sep 27, 2018
Slide 1: Performance Through Cycles
MERENKULKIJANRANTA | HELSINKI, FINLAND PERFORMANCE THROUGH CYCLES KARI KAUNISKANGAS, PRESIDENT AND CEO
Slide 2: Contents
Contents 1 Recap since CMD 2017 and merger 2 Market outlook 3 YIT strategy 2019–2021: Performance through cycles Sep 27, 2018 YIT Capital Markets Day 2018 SÄHKÖTTÄJÄNPUISTO PARK HELSINKI, FINLAND
Slide 3: Recap since CMD 2017 and merger
1 Recap since CMD 2017 and merger HELSINGIN KLYYGA APARTMENT BUILDING PROJECT TRIPLA-PROJECT, HELSINKI, FINLAND
Slide 4: Track record of YIT's and Lemminkäinen's revenue and EBIT-%
Track record of YIT's and Lemminkäinen’s revenue and EBIT-% EX-LEMMINKÄINEN’S REVENUE (EUR MILLION) AND OPERATING PROFIT MARGIN (EBIT) DEVELOPMENT BY GROUP, IFRS 2,477 2,174 2,184 2,268 1,966 2,020 2,045 1,796 1,830 1,879 1,847 1,602 1,683 1,359 1,431 1,256 1,117 965 6.2% 6.1% 5.8% 5.2% 1.2% 1.6% 2.
Slide 5: Stronger together
Stronger together GROWTH INCREASED ENGAGED ECOSYSTEM STABILITY PROFESSIONALS WIDER GROWTH COMMITMENT AND OPPORTUNITIES 1,000 COMPETENCES Strong possibilities for self-initiated EUR million businesses, which are Excellent project management skills growth in urban development stable or growing through
Slide 6: Results of the strategic development programmes launched in 2016
Results of the strategic development programmes launched in 2016 DEVELOPMENT RESULTS TARGETS NEXT STEP PROGRAMMES • ~400,000 users (dwelling units) for YIT’s digital service platform in 5 Improved customer countries experience From pilots to • LIVING SERVICES ~50,000 units in maintenance in 4 countr
Slide 7: Capital release programme in the Housing Russia segment
Capital release programme in the Housing Russia segment • Original target to reduce RUB 6 billion by end of 2018 vs. Q2/2016 (RUB 28 billion RUB 22 billion) • Target expected to be reached within winter 2018–2019 (reduction in number of completed unsold apartments as main driver) • YIT will contin
Slide 8: Good development continues in Housing in CEE
Good development continues in Housing in CEE HOUSING FINLAND AND CEE REVENUE SPLIT IN H1/2018, %1 • Gross margins in the CEE countries have been Housing Finland and slightly over the segment average CEE pro forma revenue in H1/2018: EUR 559.6 million ~20% • YIT has sold projects consisting of 861 ap
Slide 9: Market outlook
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Slide 10: Development of macro environment
Development of macro environment 2017: 6.6% FINLAND 2017: 6.4% 2018: 2.5% 2017: 3.3% RUSSIA 2018: 4.5% 2019: -0.2% 2018: 3.4% 2019: 3.6% 2020: -1.4% 2019: -1.7% The Finnish economy is in the upswing, 2020: 2.2% 2020: -1.9% Mortgage market working well and supporting investments to infra and public t
Slide 11: YIT strategy 2019–2021: Performance through cycles
3 YIT strategy 2019–2021: Performance through cycles
Slide 12: Mission: We create better living environments
MISSION: MISSION: WE CREATE WE CREATE BETTER LIVING BETTER LIVING ENVIRONMENTS. ENVIRONMENTS YIT Capital Markets Day 2018
Slide 13: Megatrends Driving Growth and Productivity
Megatrends Driving Growth and Productivity URBANISATION DIGITALISATION SUSTAINABILITY • Urban development • Customer experience • Circular and sharing economy • Public transportation connections • Higher productivity • Resource efficiency • Complex projects • Utilisation of data • Re-vitalisation of
Slide 14: YIT Strategy 2019–2021 – Performance through cycles
YIT Strategy 2019–2021 – Performance through cycles Profitable and financially stable YIT STRATEGIC PRIORITIESSTRATEGIC PRIORITIES CORNERSTONESOF CORNERSTONES OF SUCCESS SUCCESS TOP PERFORMANCE • Synergies EUR 40–50 million URBAN DEVELOPMENT • Focus on productivity improvement Sustainable Focus in s
Slide 15: Strategic priorities
Strategic priorities URBAN DEVELOPMENT NON-CYCLICAL BUSINESSES More out of the urban development capability Portfolio of businesses with stable nature and performance Average ROCE >15% through the pipeline > EUR 100 million of annual operating profit 2019 on STABLE OR GROWING Sustainable DEMAND urba
Slide 16: Cornerstones for success: Top performance, capital efficiency
Cornerstones for success TOP PERFORMANCE SYNERGIES CAPITAL EFFICIENCY EUR 40–50 MILLION GEARING • Capture synergies of the • Lower working capital and 30–50% integration CLEARLY continued divestment of SHORTER LEAD slow-moving asets • Common management system (GRIP) as a TIMES • Co-investments and f
Slide 17: Cornerstones for success: Success with customers and partners
Cornerstones for success BEST EMPLOYER SUCCESS WITH CUSTOMERS AMONG AND PARTNERS IMPROVING HAPPY PEOPLE CONSTRUCTION NPS PROFESSIONALS AND STUDENTS IMPROVED • Increased customer activity SALES MIX and deeper customer insight • Create common values and culture • Better product and service concepts •
Slide 18: Strategic financial targets
Strategic financial targets Financial target Long-term target level ROCE-% >12% Gearing 30–50% Dividend per share Growing annually Sep 27, 2018 YIT Capital Markets Day 2018
Slide 19: Implementation by strategic development programmes
Implementation by strategic development programmes GREEN GROWTH Value from sustainability • Sustainability-driven growth CUSTOMER FOCUS and profit Sales and customer excellence • During 2019: Clarify current impact and ambition level • Revenue growth among PERFORMANCE private customers • Improved NP
Slide 20: Housing Finland and CEE and Housing Russia
Key implications and targets Housing Finland and CEE and Housing Russia HOUSING FINLAND AND CEE HOUSING RUSSIA • Customer experience improvement • Less capital intensive business model • Capital employed further down in Russia1 by EUR ~100 million • Industrialisation: Design management, BIM, modular
Slide 21: Infrastructure projects and Paving
Key implications and targets Infrastructure projects and Paving INFRASTRUCTURE PROJECTS PAVING • Focus in profitability improvement • Business minded culture, good employer image and systematic training • Project and customer mix, operating model, risk management practices • Customer-focused and pro
Slide 22: Business premises and Partnership properties
Key implications and targets Business premises and Partnership properties BUSINESS PREMISES PARTNERSHIP PROPERTIES • Increasing revenue from self-developed and negotiation based • Ensuring continuously stronger project pipeline for upcoming years projects • Stable operating profit recognition every
Slide 23: Business development by segment
Business development by segment 2017 2018 2019 Housing Finland and CEE Housing Russia Infrastructure projects Paving Business premises Partnership properties - Development estimates are based on current market environment, current order backlog and executed restructuring and reorganising actions. Se
Slide 24: YIT Capital Markets Day 2018
Sep 27, 2018 YIT Capital Markets Day 2018
Slide 25: Vision: More life in sustainable cities
VISION: MORE LIFE IN SUSTAINABLE CITIES