YIT Oyj · OMXHEX:YIT
YIT Oyj — Goldman Sachs Symposium May 2021
35 slides from YIT Oyj's conference presentation, May 2021
Slide 1: Goldman Sachs Symposium presentation
TRIPLA, HELSINKI, FINLAND Goldman Sachs Symposium presentation May 2021
Slide 2: Table of contents
TRIPLA, HELSINKI, FINLAND Table of contents 1. Strategy 2. Q1/2021 results 3. Outlook and guidance 2 Goldman Sachs Symposium May 2021
Slide 3: 1. Strategy
KONEPAJA AREA, HELSINKI, FINLAND 1. Strategy Strategy excecution towards sustainable urban development continues 3 Goldman Sachs Symposium May 2021
Slide 4: More life in minutes' city
15 More life in MINUTES’ sustainable cities CITY 4 Goldman Sachs Symposium May 2021
Slide 5: Megatrends driving growth and productivity
Megatrends driving growth and productivity URBANISATION DIGITALISATION SUSTAINABILITY CHANGING DEMOGRAPHY • Urban development • Customer experience • Circular economy • Lack of people • Public transportation • Higher productivity • Carbon neutrality • Competition for talent • Complex projects • Util
Slide 6: More life in sustainable cities
More life in sustainable cities A Improve offering and Strengthen pipeline for lifetime value of assets B growth • Differentiating services in SERVICES • Plot reserve in urban areas co-operation with partners X Sustainable • Partnerships and financing • Competitive core products urban • Project deve
Slide 7: We are growing on our focus areas
We are growing on our focus areas TOTAL PLOT RESERVE, ORDER BOOK OF LIFE-CYCLE PROJECTS, € million € million 853 624 812 ~580 ~390 ~230 1 2018 2019 2020 2018 2019 2020 1 Excluding leased plots 7 Goldman Sachs Symposium May 2021
Slide 8: Strategic targets
Strategic targets ROCE Gearing >12% <50% CO2 emissions Dividend per share Growing -50% by 2030 vs. 2019 8 Goldman Sachs Symposium May 2021 TRIPLA, HELSINKI, FINLAND
Slide 9: Long-term environmental targets to mitigate climate change
PILIAMIESTIS, KAUNAS, LITHUANIA Long-term environmental targets to mitigate climate change CO2 emissions CO2 reporting We will halve carbon We report the project- dioxide emissions of our -50% specific CO2 emissions own operations (incl. of our self-developed energy, waste and Projects starting from
Slide 10: Occupational safety essential throughout the supply chain
Occupational safety essential throughout the supply chain LTIF, ROLLING 12 MONTHS Target of <9 16 12 combined lost time injury 8 Target level frequency (LTIF) of YIT personnel and 4 subcontractors by 2021 0 Rolling 12 months YIT personnel YIT personnel and subcontractors 10 Goldman Sachs Symposium M
Slide 11: 2. Q1/2021 results
HELSINKI-VANTAA AIRPORT, FINLAND Q1/2021 2. results Balance sheet continued to strengthen in Q1/2021 11 Goldman Sachs Symposium May 2021
Slide 12: My first impressions as YIT CEO
” My first impressions as YIT CEO ” Markku Moilanen, President and CEO Outstanding team spirit Competent, passionate people OUR STRENGHTS YIT brand TO BUILD UPON Quality of work Customer orientation 12 Goldman Sachs Symposium May 2021
Slide 13: We need to become more resilient in our operational performance
” We need to become more resilient in our operational performance ” - Project management IMMEDIATE ACTIONS - Operating model - Infrastructure strategy Sustainability and health LONG-TERM COMPETITIVENESS and safety in the core, strategy to be sharpened 13 Goldman Sachs Symposium May 2021
Slide 14: Q1: Adjusted operating profit €21m, gearing at target level
Q1: Adjusted operating profit €21m, gearing at target level Strong operating cash flow Solid performance in after investments housing segments, stabilising Business premises €70 million (-48) Three green bonds of €300 Balance sheet strengthened, gearing at target million in total 14 Goldman Sachs Sy
Slide 15: Order book grew in all businesses
Order book grew in all businesses REVENUE, € million ORDER BOOK, € million 975 4 074 3 848 3 831 3 716 3 528 708 700 687 606 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 15 Goldman Sachs Symposium May 2021
Slide 16: Profitability improved, variation between segments
Profitability improved, variation between segments ADJUSTED OPERATING PROFIT ADJUSTED OPERATING PROFIT, € million BY SEGMENT, € million 56 1Q20 1Q21 Q1 adjusted 16 14 operating profit margin 8 3.5% 6 5 3 5 (1.2) 21 16 -3 -4 8 5 -12 Housing FIN Housing RUS Business BP Infra- IN Partnership PP 1Q20 2Q
Slide 17: Performance in Business premises stabilised
Performance in Business premises stabilised DEVELOPMENT OF ADJUSTED OPERATING PROFIT, € million Operational performance Accountor Tower continued to transaction Solid operational stabilise supported Q1/20 performance, change in revenue recognition of €5m supported Strong sales Q1/20 1Q20 Housing Hou
Slide 18: Strong cash flow of €70m
Strong cash flow of €70m OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million -15 247 -30 -37 -36 -9 146 -52 70 -3 -2 -48 -9 -13 -4 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Associated companies and joint ventures Plot investments 18 Goldman Sachs Symposium Ma
Slide 19: Green Finance Framework
Green Finance Framework USE OF PROCEEDS: SECOND PARTY OPINION BY CICERO SHADES Green and energy efficient buildings OF GREEN: Renewable energy Clean transportation and technologies Pollution prevention and control and protection of ecosystem services Climate change adaptation 19 Goldman Sachs Sympos
Slide 20: Issuing three Green Bonds of €300m
Issuing three Green Bonds of €300m Green Green Bond Green Bond Hybrid Bond €100 €100 €100 million million million Matures on 3/2024 Matures on 1/2026 No maturity date* Floating coupon Fixed coupon Fixed coupon interest of interest of 5.75% interest of 3.25% 3M Euribor + 3.1% until reset date* *Reset
Slide 21: Net interest-bearing debt -53% y-o-y, maturity profile extended
Net interest-bearing debt -53% y-o-y, maturity profile extended NET INTEREST-BEARING DEBT, MATURITY STRUCTURE OF INTEREST- € million BEARING DEBT1, € million Q1/2021 Q4/2020 942 715 740 143 628 121 108 100 439 0 9 1Q20 2Q20 3Q20 4Q20 1Q21 2021 2022 2023 2024 2025 2026- 1 Excluding housing company lo
Slide 22: Gearing below strategic target level of <50%
Gearing below strategic target level of <50% EQUITY RATIO AND NET DEBT / ADJUSTED EBITDA RATIO GEARING RATIO, % AND INTEREST COVER RATIO 100% 7 6 80% 5 60% Gearing target <50% 4 3,5 40% 44% 3 3,2 37% 2 20% 1 0% 0 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Gearing Equity ratio Net debt / Adjus
Slide 23: 3. Outlook & guidance
HELSINKI-VANTAA AIRPORT, FINLAND Outlook & 3. guidance Stable development expected to continue in 2021 23 Goldman Sachs Symposium May 2021
Slide 24: Q2 market outlook stable with limited visibility
Q2 market outlook stable with limited visibility Housing Real estate Infrastructure market market market Finland 73% Russia Baltic countries Central European countries Sweden Q1/2021 market environment* Q2/2021 market outlook* Good Normal Weak Improving Stable Weakening 24 Goldman Sachs Symposium Ma
Slide 25: Number of completions declining, completions expected to peak again in Q4
Number of completions declining, completions expected to peak again in Q4 ESTIMATED COMPLETIONS OF CONSUMER APARTMENT PROJECTS UNDER CONSTRUCTION, units In addition, 1 654 revenue from apartments under 1 500 construction recognised 1 300 over time (POC): • 2,062 for investors • 4,060 in Russia 2 579
Slide 26: Guidance for 2021
Guidance for 2021 Housing • Demand outlook solid in all regions • Completions in 2021 to decrease compared to 2020 and volatility between the quarters to be high Group adjusted operating profit • COVID-19 could lead to delays to be Business premises higher • Performance continues to stabilise Infras
Slide 27: Management agenda
TRIPLA, HELSINKI, FINLAND Management agenda 1 We have strong foundation to build upon 2 We are taking immediate actions to stabilise our performance 3 Sustainability, health and safety in the core, strategy to be sharpened 27 Goldman Sachs Symposium May 2021
Slide 28: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Tommi Järvenpää YIT’s Vice President, Investor Relations Q2 half-year report +358 40 576 0288 will be published on tommi.jarvenpaa@yit.fi Hanna Valonen 30 Jul Investor Relations Specialist 2021 +358 400 846 556 Follow YIT IR hann
Slide 29: 4. Appendices
YIT’s HEADQUARTERS, HELSINKI, FINLAND 4. Appendices I. Debt structure II. Strategic targets III. Market position 29 Goldman Sachs Symposium May 2021
Slide 30: I. Debt structure, March 2021
I. Debt structure, 31 March 2021 DISTRIBUTION OF INTEREST RATE DISTRIBUTION OF INTEREST-BEARING DEBT INTEREST-BEARING DEBT1 5% 25% 21% 43% 1,005 € million 57% 18% 19% 12% Bonds Commercial papers Housing corporation loans related to unsold apartments Fixed rate Floating rate Loans from financial inst
Slide 31: II. Gearing improved, ROCE weakened
Strategic targets II. Gearing improved, ROCE weakened ROCE, % GEARING, % 81 >12 68 10 54 <50 44 6 6 5 1 // 2 // 2018 2019 2020 1Q21 Target 2018 2019 2020 1Q21 Target 1 Pro forma, excluding IFRS 16 2 Excluding IFRS16 31 Goldman Sachs Symposium May 2021
Slide 32: II. Dividend proposal €0.14 per share
Strategic targets II. Dividend proposal €0.14 per share EMISSION INTENSITY OF DIVIDEND PER SHARE, € OWN OPERATIONS, tCO2e/M€ BASE YEAR 1 0,12 -21% GROWING -50% 0,27 0,28 0,14 n/a // // 2018 2019 2020 Target 2018 2019 2020 Target 1 Additional dividend. 32 Goldman Sachs Symposium May 2021
Slide 33: III. YIT has strong market position in urban development
III. YIT has strong market position in urban development SHARE OF TOTAL REVENUE IN 2020 BUILDING CONSTRUCTION CIVIL ENGINEERING ~14% Housing Business premises Infrastructure projects ~22% ~2% ~1% ~4% ~7% ~1% ~2% ~12% ~4% Source: Eurostat, company own estimate. ~1% Turnover data for building and civi
Slide 34: 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 35: Together we can do it.
Together we can do it.