Slide 1: Q1/2024 Interim Report January – March 2024
Q1/2024 Interim Report January – March 2024 Heikki Vuorenmaa, 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: Cash flow and financial position improved, profitability impacted by the Finnish housing market
Cash flow and financial position improved, profitability impacted by the Finnish housing market and rising yields Underlying operating Group operating cash flow Consumer apartment sales performance was solid, Ongoing actions to after investments was Cash flow improvements increased by 59% y-o-y, pro
Slide 4: Adjusted operating profit affected by a decrease in fair values
Adjusted operating profit affected by a decrease in fair values Revenue Adjusted operating profit Adjusted operating profit EUR million EUR million margin, % Q1 2023 Q1 2024 Q1 2023 Q1 2024 455 412 -3 -0.7 -14 -9% -3.4 Includes a EUR 12 million negative impact from the yield increase in Tripla Mall.
Slide 5: Uncertainty in the Finnish housing market remains, operational performance improving in other businesses
Uncertainty in the Finnish housing market remains, operational performance improving in other businesses YIT Group, EUR million • Housing market in Finland remained weak impacting both net sales and profitability • Strong performance in Housing operations in Baltic Adj. operating profit Net sales Ad
Slide 6: Housing Finland: Consumer sales continued low
Housing Finland: Consumer sales continued low Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million 705 1096 691 689 8 Target 910 >10% 648 648 779 2 720 681 1,000 729 890 644 743 620 562 528 -5 -7 623 582 367 266 159 158 154 -15 Q1/23 Q2/23 Q3/23 Q4/23 Q1
Slide 7: The increase in apartment sales supported by successful campaigns
The increase in apartment sales supported by successful campaigns Interest rate cap campaign Rent-to-buy campaign YIT pays a 2% interest rate cap for five years on The process of buying a home starts with renting the reference mortgage rate for mortgage loan of it. First, a preliminary contract is s
Slide 8: Finnish housing market completions outlook Q1 2024 – Q4 2025
Finnish housing market completions outlook Q1 2024 – Q4 2025 Self-developed housing unit completions in the Finnish housing market • 4,600 unsold completed apartments in Finland at the end of March 2024, out of Sold completions which 1,000 (~20%) YIT’s Year 2024 Unsold completion 1,257 total: 3,802
Slide 9: Well-balanced portfolio of unsold completed apartments in Finland is an asset
Well-balanced portfolio of unsold completed apartments in Finland is an asset for the company Unsold completed apartments in Finland Size distribution of the unsold completed by region apartments in Finland • Total of 1,000 unsold completed apartments in >100m² 3% 609 Finland distributed across 58 p
Slide 10: Housing Baltic and CEE countries: Strong performance continued
Housing Baltic and CEE countries: Strong performance continued Capital employed, EUR million Order book, EUR million Quarterly adjusted operating profit, EUR million 416 408 466 400 30 419 425 436 364 362 385 377 359 251 188 214 240 223 9 Target 231 >10% 205 215 211 197 165 162 3 2 107 0 Q1/23 Q2/23
Slide 11: Apartment start-ups are concentrated in markets where demand is on a healthy level
Apartment start-ups are concentrated in markets where demand is on a healthy level Consumer apartments start-ups, housing units 1,062 • Consumer apartment start-ups increased to 478 (29) 516 apartments in the first quarter 624 of 2024 522 461 +134% 478 242 • All the start-ups in Q1/24 were 197 253 i
Slide 12: Production in Finland adapted to meet the market conditions
Production in Finland adapted to meet the market conditions Total number of apartments under construction for consumers and investors, housing units • Total number of 10,000 100% 9,000 90% apartments under construction 8,000 80% was 3,186 (6,579), majority of 7,000 70% which located in the Baltic an
Slide 13: Over 70% of the apartments will be completed in the Baltic and CEE countries in 2024
Over 70% of the apartments will be completed in the Baltic and CEE countries in 2024 Estimated completions of consumer apartments under construction Housing units 2,965 872 2,602 863 730 1,741 568 600 1,266 268 540 432 450 391 1,157 300 400 2,102 458 107 432 462 400 1,336 250 332 584 284 200 110 50
Slide 14: Consumer apartment sales increased for the fourth consecutive quarter
Consumer apartment sales increased for the fourth consecutive quarter Consumer apartments sold, housing units • Consumer sales in Finland 690 increased by +11% and in +9% Baltic and CEE countries by 520 270 +8% during the first quarter 372 285 353 338 322 342 • Fifth consecutive quarter for the 288
Slide 15: Consumer apartment sales by associated companies and joint ventures increasing
Consumer apartments sales by associated companies and joint ventures increasing Consumer apartments sold by Estimated completions of apartments under construction in associated associated companies and joint companies and joint ventures, housing units ventures*, housing units 110 Total of 213 unsold
Slide 16: Business Premises: Underlying performance for the segment improved and was positive
Business Premises: Underlying performance for the segment improved and was positive Capital employed, EUR million Order book, EUR million Quarterly adjusted operating profit, EUR million 319 1,391 1,384 6 297 4 281 1,313 Target 247 258 1,251 >4% 1,244 -4 -7 -11 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2
Slide 17: Infrastructure: Solid performance continues
Infrastructure: Solid performance continues Capital employed, EUR million Order book, EUR million Quarterly adjusted operating profit, EUR million 56 803 808 773 9 42 44 743 722 36 Target 3 >4% 2 1 1 5 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Adj. OPM
Slide 18: Market environment remained stable; housing market in Finland expected to continue to be weak
Market environment remained stable; Housing market Real estate market Infrastructure market housing market in Finland Finland expected to Baltic countries Central Eastern Europe continue to be weak in the second and third Q1 market environment Short-term market outlook Good Normal Weak Improving Sta
Slide 19: Significantly improved cash flow, indebtedness decreasing
Significantly improved cash flow, indebtedness decreasing Adjusted operating profit Operating cash flow at after investments was EUR -14 million EUR 1 million (Q1/23: -3) (Q1/23: -216) Capital employed Net debt at amounted to EUR 768 million EUR 1,591 million (Q1/23: 837) (Q1/23: 1,672) (Q4/23: 795)
Slide 20: Capital employed decreased in the first quarter
Capital employed decreased in the first quarter YIT Group, EUR million • Capital employed on a downward trend on a group level, supported by 1,672 1,683 1,681 the successful capital release measures • Housing Finland burdened by low consumer apartment sales and the 1,618 1,591 increase in the number
Slide 21: Operating cash flow after investments improved by over EUR 200 million
Operating cash flow after investments improved by over EUR 200 million Operating cash flow after investments, • Operating cash flow after investments EUR million increased significantly to EUR 1 million (-216). 200 • Cash flow was supported by YIT’s improved 100 40 67 net working capital efficiency
Slide 22: Net debt decreased by EUR 27 million during the first quarter
Net debt decreased by EUR 27 million during the first quarter Distribution of key assets in balance sheet, Distribution of interest-bearing debt, EUR million EUR million Housing company loans have long maturities, and the buyer is responsible Investments 1,839 for the repayment of the loan after sal
Slide 23: Investment and purchase commitments
Investment and purchase commitments Investment commitments at • Investment commitments are mainly related to equity commitments to joint ventures and associated companies. EUR 89 million • Commitments are reported to a full amount as long as a contractual EUR 6 million expected to be called obligati
Slide 24: Indebtedness and gearing on a downward trend
Indebtedness and gearing on a downward trend Equity ratio Gearing 35% 33% 32% 32% 101% 104% 105% 33% 33% 94% 89% 70% Target <50% Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 The EUR 100 million senior Net interest-bearing debt, bond has been Maturity structure of interest-
Slide 25: The impact of the transformation program is already visible in Q1/24 numbers
The impact of the transformation program is already visible in Q1/24 numbers • YIT’s transformation program has progressed faster than originally Cumulative annualised cost savings secured expected. from the transformation program, EUR million • With the actions taken by the end of March 2024, YIT w
Slide 26: Group adjusted operating profit is expected to be EUR 20–60 million in 2024
Tahvonlahti School, Helsinki, Finland • YIT expects its Group adjusted operating profit for continuing operations to be EUR 20–60 million in 2024. The operating cash Group flow after investments is expected to be positive. adjusted operating • The housing market recovery in Central Eastern Europe is
Slide 27: Improved financial position allows us to evaluate opportunities in the market
Improved financial position allows us to evaluate opportunities in the market Successful financing Operating cash flow after Transformation program arrangement brings stability investments significantly proceeding faster than and improves liquidity improved, indebtedness on planned, capital release
Slide 28: YIT with its partners chosen as the winner of the Leppävaara idea competition
YIT with its partners chosen as the winner of the Leppävaara idea competition “Walk Around" The winning group consists of YIT, architecture company Arco and engineering and consulting company Ramboll. 28
Slide 29: Firm focus on improving our segments' profitability and completing our transformation
Firm focus on improving our segments’ profitability and completing our transformation Focused on delivering full Continue to improve profitability Building acceleration capacity impact of the transformation and ROE on Business for the point in time when it is and capital release programs Premises, I
Slide 30: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Essi Nikitin VP, Investor Relations +358 50 581 1455 essi.nikitin@yit.fi YIT’s Half-Year Report Q2/2024 Follow YIT IR will be published on Friday, on X: 26 July x.com/ 2024 YITInvestors 30
Slide 31: Appendices
Appendices I. Key figures II. Housing sales and start-ups 31
Slide 32: I. Key figures
I. Key figures € million 1-3/24 1-3/23 1-12/23 Revenue 412 455 2,163 Operating profit -8 -7 51 Operating profit, % -2.0 -1.6 2.4 Adjusted operating profit -14 -3 41 Adjusted operating profit margin, % -3.4 -0.7 1.9 Result before taxes -22 -19 -5 Result for the period -16 -14 3 Earnings per share -0.
Slide 33: II. Sales and start-ups Q1/2020-Q1/2024: Housing Finland
The Housing segment in Finland II. Sales and start-ups Q1/2020-Q1/2024 SOLD APARTMENTS, units APARTMENT START-UPS, units 1,305 1,239 539 583 1,131 1,058 1,023 968 583 955 1,007 539 929 427 932 835 422 897 427 799 390 267 390 428 267 702 717 725 664 363 636 645 683 657 654 766 438 363 198 428 198 656
Slide 34: II. Sales and start-ups Q1/2020-Q1/2024: Baltic and CEE
The Housing segment in the Baltic and Central Eastern Europe II. Sales and start-ups Q1/2020-Q1/2024 SOLD APARTMENTS, units APARTMENT START-UPS, units 1,096 951 946 998 577 588 565 740 711 634 623 639 523 195 368 100 479 480 522 242 478 374 523 523 372 339 209 195 519 516 522 348 332 478 255 262 98
Slide 35: Together we can do it.
Together we can do it.