Yit Oyj · OMXHEX:YIT
Yit Oyj — Investor Presentation (September 2017)
99 slides from Yit Oyj's investor presentation, Sep 6, 2017
Slide 1: YIT – More life in sustainable cities
YIT – More life in sustainable cities Investor presentation August 2017 yitgroup.com
Slide 2: Contents
Contents 1 Merger of YIT and Lemminkäinen 2 YIT in brief 3 3 Strategy and business model 8 4 Latest highlights 14 5 Housing Finland and CEE 19 6 Housing Russia 29 7 Business Premises and Infrastructure 35 8 Key financials 43 9 Looking ahead and conclusions 51 10 Why invest in YIT? 54 11 Appendices 5
Slide 3: Merger of YIT and Lemminkäinen
1 Merger of YIT and Lemminkäinen
Slide 4: Summary of the merger
Summary of the merger • The combination would be completed via an all-share absorption merger whereby Lemminkäinen would be merged into YIT • Issuance of new YIT shares as merger consideration to Lemminkäinen’s existing shareholders results in a post-transaction Structure ownership of 60% of the com
Slide 5: YIT's and Lemminkäinen's recent years in brief
YIT’s and Lemminkäinen’s recent years in brief Speeding up Target to growth Seeking growth become together a leading urban Improving profitability developer in Northern Europe Focus on cash flow Seeking growth and strengthening Focus on stronger balance sheet balance sheet and operational efficiency
Slide 6: Deal rationale
YIT and Lemminkäinen to combine Deal rationale • Target to become a leader in urban development Strong platform • More balanced business portfolio 1 for growth (Infra, Housing, Business Premises, Partnership Properties) • Wider geographical presence in several economic regions Synergies and • Good r
Slide 7: Transaction overview
Transaction overview 3.6146 new YIT shares 60% 40% The transaction would be executed as an 3.6146 new YIT shares would be issued After the transaction the current absorption merger whereby for each share in Lemminkäinen as shareholders of YIT would own 60% of Lemminkäinen is merged into YIT and merg
Slide 8: Combined portfolio 2016
Combined portfolio 2016 Geographic revenue split, 2016* Illustrative combined revenue splits 2016* Infrastructure (EURm) construction and Paving: 552 Geographic split* Operational split* YIT Building construction incl. Lemminkäinen housing: 581 Baltics, CEE and others Paving and maintenance Russia B
Slide 9: Combined income statement information (IFRS)
Combined income statement information (IFRS) IFRS 1–12/2016 1.1 - 31.3.2017 Lemminkäin EUR million Combined YIT Lemminkäinen Combined YIT en Revenue 3,361.0 1,678.3 1,682.7 692,5 452,2 240,3 Operating profit 85.2 17.7 67.6 -28,1 4,7 -32,9 Operating profit % 2.5% 1.1 % 4.0% -4,1 % 1,0 % -13,7 % Adjus
Slide 10: Synergy potential
Synergy potential Description • One top management Short-term • Combined premises and external facility services synergies • IT expenses • Insurances, audit costs and other savings from being one listed entity • Skillful pool of professionals ensuring future growth and sustainable urban development
Slide 11: Need for stability over economic cycles
Need for stability over economic cycles CURRENT CHALLENGES Business Risk aversion of Economic uncertainty Unbalanced capacity cyclicality creditors NATURE OF BUSINESSES MARKETS & ECONOMIC CYCLES Scandinavia Profitability in EBIT CEE Housing & RED Finland Contracting Russia Housing Russia Time Econom
Slide 12: Urban development boosts the growth of balanced business portfolio
Group Strategy Urban development boosts the growth of balanced business portfolio HOUSING INFRASTRUCTURE Urban BUSINESS development PREMISES Aspects of Urban development PARTNERSHIP Ownership & services PROPERTIES Execution Project development YIT | 12 | Investor presentation, August 2017
Slide 13: Preliminary financial targets
Preliminary financial targets Long-term Target financial target level ROCE >12 % Dividend per share Growing annually Equity ratio >40 % Positive after Cash flow dividend payout To be specified, when merger is completed and management team starts operation Helsinki Central Library Helsinki, Finland Y
Slide 14: Nominees for the Board of Directors
The combined company Nominees for the Board of Directors Board of Directors Matti Vuoria Berndt Brunow Erkki Järvinen Harri-Pekka Kaukonen YIT Lemminkäinen YIT Lemminkäinen (Chairman) (Vice Chairman) Kristina Pentti-von Inka Mero Juhani Mäkinen Tiina Tuomela Walzel YIT Lemminkäinen YIT Lemminkäinen
Slide 15: Post transaction ownership base
Post transaction ownership base (based on shareholders on May 31 ) Shareholder Shares %-of total shares Assumptions 1 Varma Mutual Pension Insurance Company 15,945,976 7.6% • The post transaction shareholders of the 2 PNT Group Oy 15,296,799 7.2% combined entity are calculated based on 3 Pentti Heik
Slide 16: Timetable
Timetable 2017 June 19 End of August September 12 November 1 / Beginning of 2018 Announcement Planned publication YIT and On or about first trading date following of merger prospectus Lemminkäinen the completion: Expected first trading EGMs day of the new shares in YIT issued to Lemminkäinen’s share
Slide 17: New business model – More out of urban development
New business model – More out of urban development KEY ACTIONS Step C • Residential services Step B • Renovation services • Partnership • Data for value creation Properties Step A segment • Group • Improved risk More stable development tolerance cash unit More flow • Plot factory investment Long-ter
Slide 18: YIT in brief
2 YIT in brief Merenkulkijanranta residential area Helsinki, Finland
Slide 19: Over 100 years in Finland, over 50 in Russia, growing presence in CEE
Over 100 years in Finland, over 50 in Russia, growing presence in CEE Allmänna YIT becomes Ingeniörsbyrån Finland's No.1 Entry to Expansion to Ab (AIB) Operations construction Poland the Baltics establishes in Russia company and CEE in office in begin construction Helsinki services 1912 1961 1980’s
Slide 20: A real estate developer and construction company with solid track record
A real estate developer and construction company with solid track record Revenue by segment*, EUR 1.8 bn Housing Finland and CEE 44% 41% Housing Russia 15% Business Premises and Infrastructure Adjusted operating profit by segment, EUR 80 million 59.9 Housing Finland and CEE 38.1 Housing Russia Busin
Slide 21: Balanced business portfolio
Balanced business portfolio 41% 15% 44% of revenue of revenue of revenue in 2016 in 2016 in 2016 HOUSING FINLAND HOUSING RUSSIA BUSINESS PREMISES AND AND CEE INFRASTRUCTURE BUSINESS We construct and develop apartments We construct and develop apartments We build offices, shopping centres, care OPERA
Slide 22: Our vision – More life in sustainable cities
Our vision – More life in sustainable cities OUR VISION More life in sustainable cities OUR GROWTH ENGINE Urban development involving partners OUR DNA Result- oriented project executor OUR MISSION OUR VALUES CARE A STEP AHEAD COOPERATION PERFORMANCE YIT | 22 | Investor presentation, August 2017
Slide 23: Strategy
3 Strategy Konepaja residential area Helsinki, Finland
Slide 24: Revenue growth and healthy profitability through economic cycles
Revenue growth and healthy profitability through economic cycles Revenue development (EUR million) by business segment Business Premises and Infrastructure Housing Russia Housing Finland and CEE CAGR International Construction Services Construction Services Finland 5.7% Construction Services 1,929 1
Slide 25: Focus on reforming our operations
Focus on reforming our operations Coach, encourage Improve internal Provide and train people agility easy-to-use services Reduce Build true Improve construction costs partnerships capital efficiency YIT | 25 | Investor presentation, August 2017
Slide 26: Renewed strategy for 2017–2019
Renewed strategy for 2017–2019 More life in sustainable cities INNOVATOR ANNUAL GROWTH FOR LIVING 5–10% in Housing Solutions for urban living Living services e.g. affordable apartments Renovation services Performance Higher value-add for leap customers e.g. hybrids, big infra, alliances GROWTH INNOV
Slide 27: We are making a difference
We are making a difference • Proactive customer experience management CARE FOR • WOW service attitude CUSTOMERS • Digital customer journey • Strengthened long-term city development VISIONARY URBAN • Hybrid and area development DEVELOPMENT • Concepts • Latest knowledge and more diversity PASSIONATE •
Slide 28: Financial targets
Financial targets Long-term Target Outcome 2016 financial target level 5–10% annually on 8%, Revenue growth average 9% at comp. fx Return on investment 15% 4.7% (7.0%)* Sufficient for Operating cash flow after investments dividend payout EUR -43.1 million Equity ratio 40% 35.1% 40 to 60% of Dividend
Slide 29: Latest highlights
4 Latest highlights Vapo office Vantaa, Finland
Slide 30: Key messages in Q2/2017
Key messages in Q2/2017 • Strong residential sales for consumers in Finland and CEE • Operating profit turned positive in Housing Russia despite of weak demand and sales • Profitability of Business Premises and Infrastructure was satisfactory • Guidance raised in July • YIT to establish a new Partne
Slide 31: Profitability improved
Group Profitability improved • Revenue remained stable y-o-y • Profitability improved y-o-y due to improvement in Housing segments • Order backlog remained stable q-o-q Revenue and adjusted operating profit margin (EUR million, %) Order backlog (EUR million) 1–6/2017: EUR 937 2016: EUR 1,784 million
Slide 32: EBIT-bridge Q2/2016–Q2/2017
EBIT-bridge Q2/2016–Q2/2017 • Positive EBIT development in Housing Finland and CEE due to strong consumer sales • In Housing Russia, positive development due to improving gross margins • In Business Premises and Infrastructure, strong comparison period due to Tripla project • Adjustments include EUR
Slide 33: Projects in Finland in Q2
Projects in Finland in Q2 • All the large projects proceeded according to plan • The final agreement on implementation of hotel for the Tripla project signed with value of approximately EUR 88 million • The occupancy rate of Mall of Tripla increased to over 50% at the end of review period ahead of s
Slide 34: Housing Finland and CEE
5 Housing Finland and CEE Koti Hyacint Prague, the Czech Republic
Slide 35: Operating environment in Finland in Q2
Housing Finland and CEE Operating environment in Finland in Q2 • Consumer confidence was on a • Consumer demand was on a good • Mortgage interest rates stayed on record high level level, no signs of overheating a low level and margins continued to decrease • Residential investors were more • Demand
Slide 36: Sales and start-ups in Finland in Q2
Housing Finland and CEE Sales and start-ups in Finland in Q2 Sold apartments (units) • Consumer sales increased 2016: 2,730 1–6/2017: 1,615 by 23% • Share of units sold to 858 826 789 consumers: 58% 705 612 555 240 (Q2/2016: 53%) 317 328 332 298 264 618 509 461 • 23 apartments sold in 314 373 291 bu
Slide 37: Operating environment in the CEE countries in Q2
Housing Finland and CEE Operating environment in the CEE countries in Q2 • Residential demand was on a • Prices of new apartments • Interest rates of mortgages good level especially in Slovakia, increased slightly on average remained on a low level the Czech Republic and Latvia • Shortage of resourc
Slide 38: Sales and start-ups in the CEE countries in Q2
Housing Finland and CEE Sales and start-ups in the CEE countries in Q2 Sold apartments (units) • Number of units sold to 2016: 1,197 1–6/2017: 608 consumers grew by 7% 560 y-o-y 240 356 • Number of start-ups 235 252 decreased by 28% 201 201 106 320 250 • New projects started in Prague, Czech Republi
Slide 39: The production volume continued to grow in Q2
Housing Finland and CEE The production volume (units) continued to grow in Q2 • Number of unsold Apartment inventory (units) completed apartments on 6,814 a low level 6,432 262 6,152 6,237 5,863 5,971 282 6,552 335 352 • High number of start-ups 381 352 5,885 6,150 5,817 in Finland decreased the 5,4
Slide 40: Revenue, adjusted operating profit and ROCE in Q2
Housing Finland and CEE Revenue, adjusted operating profit and ROCE in Q2 • Revenue increased by 8% y-o-y, good development especially in the CEE countries • Operating profit and profitability improved due to strong consumer sales both in Finland and CEE • ROCE continued to improve and was almost 17
Slide 41: Profitability improved in H1
Housing Finland and CEE Profitability improved in H1 • In H1, the revenue increased by 27% due to good consumer sales and plot sales • Operating profit increased by 37% and profitability improved • The increased share of consumer sales in Housing Finland and CEE is likely to have a moderate positive
Slide 42: Impact of the mix in Finnish housing
Impact of the mix in Finnish housing • Target to increase the share of consumer sales by improving affordability of the apartments Higher consumer sales would reduce the need to use bundle deals to manage the Consumer inventory of unsold apartments projects EBIT-% Investor • High capital employed pr
Slide 43: Smartti concept launched and nine projects started in 2016
Smartti concept launched and nine projects started in 2016 • Smartti, a new affordable and flexible housing concept successfully launched in spring 2016 • Affordable, yet stylish homes with standardized modularity and pre-fabrication Almost 420 Smartti • Nine Smartti projects started in Finland in H
Slide 44: Housing Russia
6 Housing Russia Inkeri residential project St. Petersburg, Russia
Slide 45: Operating environment in Q2
Housing Russia Operating environment in Q2 • Consumers continued to be • Consumer demand for housing • Mortgage interest rates for new cautious despite the stayed weak apartments continued to stabilisation of the Russian decrease and are below the economy • Residential prices remained level of 11% s
Slide 46: Sales and start-ups in Q2
Housing Russia Sales and start-ups in Q2 Sold apartments (units) and share of sales financed with a mortgage (%) • Number of sold units 2016: 3,523 (51%) 1–6/2017: 1,130 (54%) decreased by 29% y-o-y 892 880 925 • No changes in price lists 826 546 584 • Start-ups on a low level 54% 50% 52% 52% 56% 49
Slide 47: YIT Service responsible already for 37,000 clients
Housing Russia YIT Service responsible already for 37,000 clients • Number of completions on a Apartment inventory (units) high level: 1,667 units 8,895 9,030 • High number of 449 345 8,255 366 7,040 7,041 completions had an 8,446 8,685 7,889 414 278 6,123 537 negative effect on the 49% 49% 6,626 6,
Slide 48: Revenue, adjusted operating profit and ROCE in Q2
Housing Russia Revenue, adjusted operating profit and ROCE in Q2 • Revenue decreased by 8% at comparable FX • Operating profit was positive in Q2 due to improved gross margins • Capital employed decreased due to weakened ruble q-o-q, ROCE was on an unsatisfactory level Adjusted operating profit and
Slide 49: Operating profit improved y-o-y in H1
Housing Russia Operating profit improved y-o-y in H1 • Revenue decreased by 9% y-o-y at comparable exchange rates due to low residential sales • The operating profit was weighed down by the lower apartment sales compared to previous year, though better gross margin levels had a positive impact CAGR
Slide 50: Business Premises and Infrastructure
7 Business Premises and Infrastructure Tripla Helsinki, Finland
Slide 51: Operating environment in Q2
Business Premises and Infrastructure Operating environment in Q2 • Investor demand for business • The Finnish tender market and • Investor demand for business premises in prime growth centres infrastructure market were active premises was good in the Baltic was on a good level in Finland especially
Slide 52: Revenue, adjusted operating profit and ROCE in H1
Business Premises and Infrastructure Revenue, adjusted operating profit and ROCE in H1 • Revenue decreased by 11% due to started revenue recognition of Tripla project in the comparison period • Operating profit decreased by 27% y-o-y, profitability back on a satisfactory level • Capital employed inc
Slide 53: Revenue stable, profitability decreased in H1
Business Premises and Infrastructure Revenue stable, profitability decreased in H1 • Revenue was stable y-o-y in H1 • Profitability was low due to weakened margins in certain projects in the CEE countries and seasonality of infra CAGR 0% 823 797 777 694 689 9.3% 599 599 616 561 7.5% 6.6% 6.2% 6.5% 3
Slide 54: Tripla project: Pasila, Helsinki in the future
Tripla project: Pasila, Helsinki in the future YIT | 54 | Investor presentation, August 2017
Slide 55: Tripla project supports growth in the coming years
Tripla project supports growth in the coming years Tripla project in brief Indicative value split Current topics • EUR 1 billion hybrid project: Final agreement on the offices, shopping and congress implementation of the hotel center, hotels, public transport Parking and foundations signed in Apri
Slide 56: Mall of Tripla in a nutshell
Mall of Tripla in a nutshell Illustration of revenue recognition* What has been achieved so far? • Valid building permits and required decisions from public authorities obtained • Financing package of ~EUR 300 million secured • Investor deals closed, value ~EUR 600 million • Foundation works, excava
Slide 57: The largest ongoing projects in the segment
The largest ongoing projects in the segment The largest ongoing self-developed business premises projects Value, Project Completion rate, Estimated Leasable area, Project, location EUR million type Business type % completion Sold/ for sale sq.m. YIT’s ownership Mall of Tripla, Helsinki ~600 Retail S
Slide 58: Key financials
8 Key financials
Slide 59: Key figures
Key figures EUR million 4–6/2017 4–6/2016 Change 1–6/2017 1–6/2016 Change 1–12/2016 Revenue 457.8 463.7 -1% 937.0 826.1 13% 1,783.6 Operating profit 24.0 20.2 19% 40.7 32.2 26% 52.9 Operating profit margin, % 5.2% 4.3% 4.3% 3.9% 3.0% Adjusted operating profit 25.0 20.2 24% 41.7 32.2 29% 79.9 Adjuste
Slide 60: ROI continued to improve in Q2
ROI continued to improve in Q2 • Invested capital remained stable q-o-q • ROI continued to improve • Target to reduce capital employed in Russia by approximately RUB 6 billion by the end of 2018 Invested capital (EUR million) Return on investment1 (%), rolling 12 months 1,400.0 100.0% 98.0% 96.0% 94
Slide 61: Cash flow in Q2
Cash flow in Q2 • Cash flow decreased • In addition, dividend of EUR 27.6 million paid in Q2 Operating cash flow after investments, excluding discontinued operations Cash flow of plot investments and investment in associated companies (EUR million) and JVs in shares (EUR million) Long-term target: S
Slide 62: Net debt increased in Q2
Net debt increased in Q2 • Net debt increased moderately due to dividend payout and plot investments • EUR 30 million already refinanced of the EUR 41.2 million maturing in H2 Interest-bearing debt (EUR million), IFRS Maturity structure of long-term debt 6/2017 (EUR million) 1 677 678 700 668 628 64
Slide 63: Plots in the balance sheet by segments and geography
Plots in the balance sheet by segments and geography Plot reserves in the balance sheet 6/2017, (EUR million) Division by geography in Finnish housing In total EUR 597 million 41% 59% 2391 273 144 129 HMA, incl. Tripla residential 85 Rest of Finland Division by geography in Business Premises and Inf
Slide 64: Plot reserve consists of own plots, pre-agreements and rental plots
Plot reserve consists of own plots, pre-agreements and rental plots Plot reserve in thousand floor square metres 6/2017, consists of own plots, pre-agreements and rental plots, 5.4 million floor sq. m in total (Q1/2017: 5.1) Finnish housing, total 2.0 million floor sq.m Housing Russia, total 2.2 mil
Slide 65: Financial key ratios in Q2
Financial key ratios in Q2 • Gearing and equity ratio impacted by the weakened ruble and dividend payout • Net debt/EBITDA (IFRS) continued to improve Gearing (%) Equity ratio (%) Net debt/EBITDA (Multiple, x) 12.3 12.3 10.3 118.9 115.0 36.4 8.6 108.6 112.3 35.1 35.4 8.1 104.8 103.6 34.1 33.8 34.6 6
Slide 66: Ruble weakened in Q2
Ruble weakened in Q2 Revenue split Q2/2017 (POC) Principles of managing currency risks: RUB • Sales and project costs typically in same currency, all 14% foreign currency items hedged no transaction impact Other • Currency positions affecting the income statement, such 3% as loans to subsidiaries,
Slide 67: Dividend for 2016: EUR 0.22
Dividend for 2016: EUR 0.22 Dividend / share (EUR) Note: Historical figures prior to 2013 are YIT Group pre demerger 0.80 0.75 0.70 0.65 0.65 0.55 0.50 0.40 0.38 0.35 0.30 0.22 0.23 0.22 0.22 0.19 0.18 0.15 0.11 0.09 0.07 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201
Slide 68: Looking ahead and conclusions
9 Looking ahead and conclusions
Slide 69: Market outlook, expectations for 2017
Market outlook, expectations for 2017 Finland • Consumer demand to remain on a good level • Investor activity to decline slightly, the importance of location remains significant • Residential price polarisation between growth centres and other Finland to continue • Availability of mortgages to remai
Slide 70: Guidance for 2017 raised
Guidance for 2017 raised (segment reporting, POC) on July 13,2017 The Group revenue is estimated to grow by 5–12%. The adjusted operating profit1 is estimated to be in the range of EUR 105–115 million. Previously, the Group revenue was estimated to grow by 0–10% and the adjusted operating profit was
Slide 71: Why invest in YIT?
10 Why invest in YIT? Kasarmikatu 21 office building Helsinki, Finland
Slide 72: Trends and drivers provide long-term growth opportunities
Trends and drivers provide long-term growth opportunities Growing need for new apartments, New business opportunities Megatrends driving market services and infrastructure development Urbanisation Demographic Digitalisation Poor condition of Changes buildings and infrastructure Metropolitan areas Ag
Slide 73: Strong market position in all markets
Strong market position in all markets Market sizes in 2016 Euroconstruct and Forecon, estimates YIT Position and 2016 residential start-ups 32,900 residential Market leader start-ups in Finland Infra construction EUR 6,5 bn 2,877 units Business premises EUR 11,4 bn 1,100,000 residential Largest fore
Slide 74: YIT's competitive edges
YIT’s competitive edges High-quality brand and reputation as a reliable company “Best developer in Finland”, Euromoney Real Estate Survey 2015 Innovative concepts and effective design management Strong plot reserve and development capabilities “Developer of the year 2014” in the Czech Republic
Slide 75: Appendices
11 Appendices Tripla Pasila, Helsinki, Finland Konepaja residential area Helsinki, Finland
Slide 76: Appendices
Appendices I. Additional financial information II. Housing indicators III. Business premises and infrastructure construction indicators IV. Ownership Wilhelm Helsinki, Finland YIT | 76 | Investor presentation, August 2017
Slide 77: I Additional financial information
I Additional financial information
Slide 78: Cash flow of plot investments
Cash flow of plot investments 302 37 192 135 17 171 158 13 15 135 138 105 5 79 119 51 70 98 95 39 11 60 16 7 3 73 10 63 13 130 32 13 35 93 91 96 88 65 79 59 60 58 45 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Finland Russia The CEE countries YIT | 78 | Investor presentation, August 2017
Slide 79: Balanced debt portfolio
Balanced debt portfolio Debt portfolio at the end of the period 6/2017, EUR 649 million Maturity structure at the end of the period 6/2017 Maturity profile, excluding construction stage financing (EUR million) Bonds, 23% Commercial papers, 17% Construction stage financing, 39% 450 Commercial papers
Slide 80: Consolidated balance sheet
Consolidated balance sheet June 30, 2017 (EUR million) Revenue* Assets - Inventories, WIP in particular, account for a major share Equity and liabilities 2,215 2,215 85 Non-current assets 253 224 1,906 Equity 533 169 42 (10%) (2%) Non-current borrowings 269 597 (35%) (33%) Current borrowings 380 2,0
Slide 81: YIT's cost base in 2016
YIT’s cost base in 2016 External services account for a major share of YIT’s costs IFRS, EUR million (% of cost base before EBITDA) Indicative cost structure of a Finnish residential project 264 (18%) Total cost base of EUR 1,388 million 10-15% Margin on EBIT-level <10% Fixed costs and marketing 27
Slide 82: Construction stage financing
Construction stage financing Financing of construction in a typical residential During construction: development project in Finland: YIT Customers • YIT’s subsidiary YIT Construction sells the contract receivables from Housing corporations (also owned by YIT) to financial institutions Customer • Due
Slide 83: Business model in self-developed housing varies between countries
Business model in self-developed housing varies between countries Finland Russia DD & market Plot • Zoning DD & market • Zoning analysis analysis development • Permitting • Permitting • Design • Social infra and management utilities planning • Design mgmt Construction • Duration 12-15 months • Durat
Slide 84: II Housing indicators
II Housing indicators
Slide 85: Start-ups expected to decrease slightly in 2017 and 2018
Finland Start-ups expected to decrease slightly in 2017 and 2018 Residential start-ups (units) Consumers’ views on economic situation in one year’s time (balance) 37,500 30 35,573 32,033 33,525 32,807 32,400 6,700 32,500 Own economy 31,000 20 29,842 27,778 26,273 6,500 7,300 16,531 12,477 11,614 7,9
Slide 86: Housing indicators have improved slightly
Finland Housing indicators have improved slightly Unsold completed units (residential development projects) Residential building permits, start-ups and completions (million m3) Permits Million m3, 12 month sum Completions Starts Construction cost index (2005=100) Construction confidence (balance) 13
Slide 87: Residential construction is expected to level off
The Baltic Countries Residential construction is expected to level off Residential completions in Estonia (units) Residential completions in Latvia (units) 5,600 8,100 5,300 4,732 4,900 1,100 1,500 2,000 3,969 1,400 1,511 3,000 2,756 1,270 4,200 2,300 1,000 1,918 1,990 2,079 4,200 976 1,800 2,662 2,
Slide 88: Start-ups forecasted to grow in the Czech Republic
The Czech Republic, Slovakia and Poland Start-ups forecasted to grow in the Czech Republic Residential start-ups in the Czech Republic (units) Residential start-ups in Slovakia (units) 43,500 28,400 37,300 32,200 21,400 30,600 20,300 19,600 20,000 25,100 28,200 27,500 13,800 18,500 26,400 27,200 20,
Slide 89: Housing indicators
Russia Housing indicators House prices in primary markets (thousand RUB per sq. m.) New residential construction volume (EUR billion*) 110 220 55 100 200 50 90 180 45 80 160 70 140 40 60 120 35 50 100 30 40 80 30 60 25 20 40 20 2013 2014 2015 2016F 2017F 2018F 2019F Yekaterinburg Rostov-on-Don Kazan
Slide 90: III Business premises and infrastructure construction indicators
III Business premises and infrastructure construction indicators
Slide 91: New non-residential construction forecasted to pick up slightly in the Baltic countries
New non-residential construction forecasted to pick up slightly in the Baltic countries in 2017 New non-residential construction volumes (index 2013=100) New non-residential construction in Finland (EUR million) 220 1,600 200 1,400 180 1,200 160 1,000 140 800 120 600 100 400 80 200 60 0 40 2013 2014
Slide 92: Prime yields expected to decrease slightly
Finland Prime yields expected to decrease slightly Prime yields in Helsinki Metropolitan Area (%) Vacancy rates in Helsinki Metropolitan Area (%) Office yields in Helsinki Metropolitan Area, % Prime yields in growth centres, % Source: Catella Finland Market Indicator, March 2017 YIT | 92 | Investor
Slide 93: Yields are expected decrease slightly
The Baltic countries Yields are expected decrease slightly Prime office yields in the Baltic countries (%) Prime office rents in the Baltic countries, (%, EUR / sq. m. / year) Prime retail yields in the Baltic countries (%) Prime retail rents in the Baltic countries, (%, EUR / sq. m. / year) Source:
Slide 94: Market expected to remain stable in 2017
Infrastructure construction in Finland Market expected to remain stable in 2017 Infrastructure market in Finland (EUR million) Infrastructure sectors in Finland (2016) 7,000 Other 11% 6,000 5,000 Roads 35% 4,000 Energy & water works 25% 3,000 2,000 1,000 Telecom- Railways 0 munications 14% 2013 2014
Slide 95: Ownership
Sn: Pam agin rSsagaacwu © See e see » @ Een omni Teaco LD | ) Lass Speen pul Ownership
Slide 96: YIT's major shareholders
YIT’s major shareholders July 31, 2017 Shareholder Shares % of share capital 1. Varma Mutual Pension Insurance Company 12,000,000 9.43 2. OP Funds 5,778,951 4.54 3. Herlin Antti 4,710,180 3.70 4. Elo Mutual Pension Insurance Company 3,335,468 2.62 5. The State Pension Fund 2,975,000 2.34 6. Danske I
Slide 97: 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 98: Disclaimer
Disclaimer Important information regarding the merger of YIT and Lemminkäinen The information contained in this presentation regarding the merger of YIT Corporation (“YIT”) and Lemminkäinen Corporation (“Lemminkäinen”) (unless otherwise indicated) has been provided by YIT and Lemminkäinen. By attend
Slide 99: Together we can do it.
Together _ we can do it.