Slide 1: Q4/2024 Financial Statements Bulletin January – December 2024
Q4/2024 Financial Statements Bulletin January – December 2024 Heikki Vuorenmaa, President and CEO Tuomas Mäkipeska, CFO Piliamiestis, Kaunas, Lithuania
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: Consumer apartment sales increased, contracting segments continued on a good track
Consumer apartment sales increased, contracting segments continued on a good track Increasing trend in apartment Ongoing Fourth quarteractions consumer to Cash Solid flow improvements operative performance sales continued in Finland, apartment sales the highest from improve capital oncontracting seg
Slide 4: YIT’s 2024 in brief
YIT’s 2024 in brief • We improved our financial position significantly. A • In the Finnish residential business, the year was difficult comprehensive multi-stage financing renewal was executed due to the market conditions. However, even in a challenging in a planned manner during the first half of t
Slide 5: Revenue and adjusted operating profit decreased in 2024
Revenue and adjusted operating profit decreased in 2024 597 2,163 521 1,820 412 434 453 Revenue EUR million Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 60 4% 30 26 6% 20 4% 41 Adjusted 13 13 40 7 32 operating 10 2% 2% profit 0 0% 20 EUR million -10 -2% -20 -14 -4% 0 0% Q4 2023 Q1 2024 Q2 2024
Slide 6: Operating profit impacted by actions taken
Operating profit impacted by actions taken 2023 2024 Main adjusting items in 2024 • EUR 54 million costs related to the Operating profit 51 transformation program EUR million • Of which EUR 20 million related to -55 headquarter premises in Finland • Of which EUR 34 million related to other costs 202
Slide 7: Transformation program targets achieved and exceeded
Transformation program targets achieved and exceeded • The transformation program was successfully completed in 2024, and now Cumulative annualized cost savings secured the focus moves towards continuous improvement from the transformation program, EUR million 43 • Annualized inflation-adjusted run-
Slide 8: Transformation program results
Transformation program results Project net deviations, Fixed costs* rolling four quarters -25% 0 2022 2024 Capital employed, EUR million Transformation program launched on February 10, 2023 1,672 1,401 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 Business Prem
Slide 9: Baltic and CEE residential business the main profit driver in Q4
Baltic and CEE residential business the main profit driver in Q4 YIT Group, EUR million • Residential market in Finland remained weak Adj. operating profit Revenue Adj. OP, % impacting performance • High profitability in the Baltic and CEE countries 13 (13) 521 (597) 2.6 (2.2) • • residential busine
Slide 10: Housing Finland: Capital employed and the number of unsold completed apartments decreased
Housing Finland: Capital employed and the number of unsold completed apartments decreased Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million Target >10% Increasing trend in apartment sales Order book continued on a low level Adjusted operating profit w
Slide 11: Finnish residential market completions outlook Q3 2024 – Q2 2026
Finnish residential market completions outlook Q3 2024 – Q2 2026 Self-developed apartment unit completions in the Finnish residential market • New starts are mostly outside of the capital area, supply on the market continues on a Year 2024 Sold completions tight level throughout 2025. total: 4,139 U
Slide 12: The stock of unsold completed apartments continues to decline
The stock of unsold completed apartments continues to decline – we will reach normal level of inventory during 2025 Unsold completed apartments in Finland Size distribution of the unsold completed by region apartments in Finland 469 • Total of 700 unsold completed apartments in Finland distributed a
Slide 13: Housing Baltic and CEE countries: Strong profitability and high apartment sales
Housing Baltic and CEE countries: Strong profitability and high apartment sales Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million Target >15% Stock is on a normal level, capital Share of sold orderbook increasing as Strong profitability with adjusted
Slide 14: New projects started in Finland to meet the demand in selected cities
New projects started in Finland to meet the demand in selected cities Consumer apartment starts, units • Consumer apartment starts amounted to 222 (204) apartments • Overall apartment starts are concentrated in the Baltic and CEE countries • Four projects started in Finland during Q4, supported by r
Slide 15: Production under control
Production under control Total number of apartments under construction for consumers and investors, units • Total number of 10,000 100% apartments under construction 9,000 90% was 2,770 (3,393), majority of 8,000 80% 7,000 70% which located in the Baltic and 6,000 60% CEE countries 5,000 50% 4,000 4
Slide 16: Low amount of completions during 2025 will limit Finnish residential profit
Low amount of completions during 2025 will limit the Finnish residential business’s capability to generate profit Consumer apartment completions, units 2,602 950 1,266 1,470 1,300 507 750 391 376 350 950 107 1,050 196 388 1,336 315 300 284 140 520 250 119 0 0 200 56 61 50 2023 2024 2025 Q1/24 Q2/24
Slide 17: Q4/24 was the strongest quarter in consumer apartment sales since Q2/22
Q4/24 was the strongest quarter in consumer apartment sales since Q2/22 Consumer apartments sold, units • Consumer sales in Finland increased by 38% during the fourth quarter, and +43% y-on-y • In the Baltic and CEE countries, consumer sales improved by +20% from the previous quarter and +36% y-on-y
Slide 18: Apartments sold by associated companies and joint ventures at a record high level
Apartments sold by associated companies and joint ventures at a record high level Apartments sold by associated Estimated completions of apartments under construction in associated companies and joint ventures*, units companies and joint ventures, units Total of 88 (end of Q3/24: 109) unsold complet
Slide 19: Infrastructure: Starting the year 2025 from a solid position
Infrastructure: Starting the year 2025 from a solid position Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million Target >6% Segment reached the target to operate Strong order book with large projects Steady profitability during 2024 with the with negati
Slide 20: Business Premises: Balance sheet burdened full year profitability
Business Premises: Balance sheet burdened full year profitability Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million Target >6% No significant changes in capital Order book decline reflects market Adjusted operating profit not meeting employed. situati
Slide 21: Market environment remained stable; primary apartment market sales volumes expected to increase
Market environment Building remained stable; Residential market construction market Infrastructure market the primary apartment Finland market sales volumes Baltic countries Central Eastern Europe are expected to slightly increase during 2025 in Q4 market environment Short-term market outlook Good N
Slide 22: We took important steps to improve our financial position during 2024
We took important steps to improve our financial position during 2024 Adjusted operating profit Operating cash flow at after investments was EUR 32 million EUR 110 million (2023: 41) (2023: -137) Capital employed Net debt at amounted to EUR 680 million EUR 1,401 million (2023: 795) (2023: 1,618) (Q3
Slide 23: Capital employed decreased in all businesses
Capital employed decreased in all businesses YIT Group, EUR million • Capital employed decreased significantly on a group level, supported by the successful capital release measures • Capital employed decreased in Housing, supported by strong apartment sales • In Infrastructure, capital employed dec
Slide 24: Significant improvement in cash flow during 2024
Significant improvement in cash flow during 2024 Operating cash flow after investments, EUR million • Operating cash flow after investments was EUR 114 million (67) in Q4, mainly supported by operational cash flow in the residential business, attributable to project completions in the CEE countries
Slide 25: Net debt and gearing decreased significantly
Net debt and gearing decreased significantly Equity ratio Gearing 33% 33% 33% 34% 34% 94% 97% 98% 89% 88% Target range 30-70% Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Net interest-bearing debt, Maturity structure of interest-bearing debt, EUR million EUR million* 276 795 768 788 7
Slide 26: Net debt decrease supported by increased apartment sales in 2024
Net debt decrease supported by increased apartment sales in 2024 Assets and net debt breakdown, EUR million Finland: 700 apartments Tripla valued CEE: 281 apartments at 184 million Assets 1,674 Owned plots Leased plots Production Completed Investments Adj. Net 226 debt* 454M€ Net debt 680 *Excluding
Slide 27: YIT expects Group adjusted operating profit to be EUR 20–60 million in 2025
Tahvonlahti School, Helsinki, Finland • The residential market in the Baltic countries and Central Eastern Europe is expected to continue favorable, contributing positively to Residential CEE segment's capability to generate profit. Timing of the residential project YIT expects its Group completions
Slide 28: We are focused on reinforcing our financial stability
We are focused on reinforcing our financial stability Capital employed was on a Net debt decreased and cash We have the financial capacity to downward trend throughout 2024, flow increased significantly, start new residential projects to and we will continue to release supported by increased support
Slide 29: New strategy and financial targets for 2025-2029 published at Capital Markets Day
New strategy and financial targets for 2025-2029 published at Capital Markets Day in November 2024 Strategic priorities Deliver industry-leading Generate targeted growth Elevate customer and productivity and and resilience employee experience financial performance Financial targets to be reached by
Slide 30: Megatrends are supporting our growth plan
Megatrends are supporting our growth plan Strategic priorities Large data center and industrial construction contracts secured during Q4 Deliver industry-leading productivity and financial performance • On December 18, YIT announced that it had signed a project management contract with Hitachi Energ
Slide 31: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Essi Nikitin Arttu Hakala-Ranta VP, Investor Relations Investor Relations Manager +358 50 581 1455 +358 40 076 1775 essi.nikitin@yit.fi arttu.hakala-ranta@yit.fi YIT’s Interim Report Q1/2025 will be published on Tuesday, Follow Y
Slide 32: Appendices
Appendices I. Key figures II. Housing sales and starts 32
Slide 33: I. Key figures
I. Key figures EUR million 10–12/24 10–12/23 1–12/24 1–12/23 Revenue 521 597 1,820 2,163 Operating profit -17 33 -55 51 Operating profit, % -3.3 5.5 -3.0 2.4 Adjusted operating profit 13 13 32 41 Adjusted operating profit margin, % 2.6 2.2 1.7 1.9 Result before taxes -33 13 -118 -5 Result for the pe
Slide 34: II. Sales and starts: Housing Finland
The Housing segment in Finland II. Sales and starts *Q1/2023 “To investors” figure includes 144 units initially started for consumers from a bundle deal. *Q2/2023 “To investors” figure includes 190 units initially started for consumers from a bundle deal.
Slide 35: II. Sales and starts: Housing Baltic and CEE
The Housing segment in the Baltic and Central Eastern Europe II. Sales and starts *135 units initially started for consumers in Q3/2022, were later sold to investors. The figures have been adjusted so that the units sold to investors appear under "Started for investors".
Slide 36: Together we can do it.
Together we can do it.