Slide 1: Interim report 1-9/2021
TRIPLA WORKERY EAST, HELSINKI, FINLAND Interim report 1-9/2021 Markku Moilanen − President and CEO Ilkka Salonen − 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: Our focus has been on preventive safety actions
AS OY HELSINGIN BIRGER, HELSINKI, FINLAND Our focus has been on preventive safety actions COMBINED LOST TIME INJURY FREQUENCY Vigorous health and safety measures during 11 COVID-19 pandemic 10 9.8 Management walks and 9 safety observations progressing 8 3Q20 4Q20 1Q21 2Q21 3Q21 Combined LTIF LTIF ta
Slide 4: Q3: Good profitability progress continued
PRADIAREN, BRATISLAVA, SLOVAKIA Q3: Good profitability progress continued Group adjusted Solid results in operating profit housing segments reflecting €18 improved margins, favourable sales mix and million (16) better efficiency Business premises Infra remains positive positive, despite margin reduc
Slide 5: Measures to improve performance progressed at a fast pace
TRIPLA, HELSINKI, FINLAND Measures to improve performance progressed at a fast pace 1 Project management 2 Operating model 3 New strategy 5 Interim report 1-9/2021
Slide 6: Q3 results
TRIPLA, HELSINKI, FINLAND Q3 results 6 Interim report 1-9/2021
Slide 7: Order book strengthened
Order book strengthened REVENUE, € million ORDER BOOK, € million 975 4,099 3,831 3,890 3,716 3,528 733 687 606 587 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 7 Interim report 1-9/2021
Slide 8: Profitability improved, all segments positive
Profitability improved, all segments positive ADJUSTED OPERATING PROFIT ADJUSTED OPERATING PROFIT, € million PER SEGMENT, € million 56 3Q21 3Q20 Q3 adjusted 17 16 operating profit margin 10 6 7 3.1% 2 3 1 5 30 (2.4) 21 16 18 -19 Housing FIN Housing RUS Business BP Infra- IN Partnership PP 3Q20 4Q20
Slide 9: Business premises continued to stabilise – solid results in housing segments
Business premises continued to stabilise – solid results in housing segments DEVELOPMENT OF ADJUSTED OPERATING PROFIT, € million Operational Margin performance reductions in stabilising certain old projects Solid performance 18 3Q20 Housing Housing Business Infra- Partnership Other 3Q21 FIN&CEE RUS
Slide 10: Cash flow of investments at a normal level
Cash flow of investments at a normal level OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million -15 -28 -24 146 -37 -36 -9 109 -5 70 -6 -2 -13 -9 -23 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Associated companies and joint ventures Plot investments 10 Interim
Slide 11: Net interest-bearing debt remains low
Net interest-bearing debt remains low NET INTEREST-BEARING DEBT, MATURITY STRUCTURE OF INTEREST- € million BEARING DEBT1, € million 3Q21 2Q21 740 628 439 411 121 353 100 76 59 51 9 3Q20 4Q20 1Q21 2Q21 3Q21 2021 2022 2023 2024 2025 2026- 1 Excluding housing company loans related to unsold apartments,
Slide 12: Gearing remains below strategic target level of <50%
Gearing remains below strategic target level of <50% EQUITY RATIO AND NET DEBT / ADJUSTED EBITDA RATIO GEARING RATIO, % AND INTEREST COVER RATIO 100% 6 5 4.6 80% 4 60% Gearing target <50% 3 40% 40% 2 2.6 40% 20% 1 0% 0 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Gearing Equity ratio Net debt /
Slide 13: Outlook
TRIPLA, HELSINKI, FINLAND Outlook 13 Interim report 1-9/2021
Slide 14: Q4 market outlook stable
Q4 market outlook stable Housing Real estate Infrastructure market market market Finland 73% Russia Baltic countries Central European countries Sweden Q3/2021 market environment* Q4/2021 market outlook* Good Normal Weak Improving Stable Weakening 14 Interim report 1-9/2021 *Estimates of the market e
Slide 15: Material cost inflation to have only minor impact on 2021
AS OY HELSINGIN BIRGER, HELSINKI, FINLAND Material cost inflation to have only minor impact on 2021 BUILDING COST INDEX MITIGATION ACTIONS AT YIT 125 Index 2015=100 110 Procurement practices 95 Total index Workforce Materials Services 185 Pricing and Index 2015=100 155 contractual practices 125 95 T
Slide 16: Number of completions expected to peak in Q4
Number of completions expected to peak in Q4 ESTIMATED COMPLETIONS OF CONSUMER APARTMENT PROJECTS UNDER CONSTRUCTION, units In addition, 1,654 revenue from apartments 1,600 under construction recognised 1,600 over time (POC): 1,000 • 2,073 units for investors 950 • 4,126 units in Russia 2,579 137 2,
Slide 17: Guidance for 2021
Guidance for 2021 Housing FIN&CEE • Q4 completions at a high level Group adjusted operating profit Housing Russia to be • Solid underlying performance to continue Business premises higher • Performance continues to stabilise than in 2020 Infrastructure • Impacted by certain low-performing projects (
Slide 18: Management agenda for H2
TRIPLA, HELSINKI, FINLAND Management agenda for H2 1 Continue actions to stabilise performance, implement new operating model 2 Finalise new strategy 3 Take proactive actions in health and safety, develop sustainability roadmap 18 Interim report 1-9/2021
Slide 19: Capital Markets Day
Capital Markets Day 23 November Webcast at 1 p.m. – 4 p.m. 19 Interim report 1-9/2021
Slide 20: Additional information
Additional information Follow YIT IR on Twitter YIT Investor Relations YIT’S FINANCIAL REPORTING twitter.com/ investorrelations@yit.fi AND AGM IN 2022 YITInvestors Tommi Järvenpää Vice President, Investor Relations Full-Year result 2021 4 February +358 40 576 0288 Financial Statements 2021 week 8/20
Slide 21: Appendices
TRIPLA, HELSINKI, FINLAND Appendices 21 Interim report 1-9/2021
Slide 22: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Housing completion estimates IV. Share ownership V. Debt structure VI. Investment portfolio KEILALAMPI, ESPOO, FINLAND 22 Interim report 1-9/2021
Slide 23: I. Key figures
I. Key figures € million 7-9/21 7-9/20 1-9/21 1-9/20 1-12/20 Revenue 587 687 1,927 2,094 3,069 Operating profit 6 -16 46 -20 35 Operating profit margin, % 1.0 -2.4 2.4 -0.9 1.1 Adjusted operating profit 18 16 69 29 85 Adjusted operating profit margin, % 3.1 2.4 3.6 1.4 2.8 Result before taxes -1 -27
Slide 24: II. Sales and start-ups 2019-2021 Housing Finland
Housing Finland II. Sales and start-ups 2019-2021 SOLD APARTMENTS, units APARTMENT START-UPS, units 1800 1600 1,481 1,637 1400 1,372 1,080 1600 993 1,274 1,305 939 1400 546 539 1200 1,131 1,239 583 1200 955 1,091 583 1000 932 1,023 897 845 390 1000 907 546 929 267 863 539 428 835 800 261 717 725 799
Slide 25: II. Sales and start-ups 2019-2021 Housing CEE
Housing CEE II. Sales and start-ups 2019-2021 SOLD APARTMENTS, units APARTMENT START-UPS, units 1200 1000 Of projects earlier sold to YCE Housing I fund or a 951 1,096 JV, and recorded as investor sales, YIT sold 85 900 588 apartments further to consumers (2Q20: 1) 998 1000 800 700 634 623 800 600 3
Slide 26: II. Sales and start-ups 2019-2021 Housing Russia
Housing Russia II. Sales and start-ups 2019-2021 SOLD APARTMENTS, units APARTMENT START-UPS, units 1600 1,461 140% 1400 1,281 1400 1200 502 120% 1200 1,153 1000 100% 906 1000 928 862 320 807 787 819 800 775 772 80% 725 750 779 807 787 800 722 711 300 662 571 594 72% 600 548 66% 66% 60% 600 62% 320 4
Slide 27: IV. Share ownership, 30 September 2021
IV. Share ownership*, 30 September 2021 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE- MAJOR SHAREHOLDERS REGISTERED AND NON-FINNISH OWNERSHIP 47,491 46,722 % OF SHARE 46,704 SHAREHOLDERS SHARES 43,752 44,312 CAPITAL 43,619 43,178 41,944 25,100,000 11.89 40,016 1. Tercero Invest AB 36,547 36,064 2. Va
Slide 28: V. Debt structure, 30 September 2021
V. Debt structure, 30 September 2021 DISTRIBUTION OF INTEREST RATE DISTRIBUTION OF INTEREST-BEARING DEBT INTEREST-BEARING DEBT1 9% 26% 43% 31% €758 million 57% 14% 20% Bonds Housing company loans related to unsold apartments Loans from financial institutions Fixed rate Floating rate Lease liabilitie
Slide 29: VI. Investment portfolio and estimated timelines
Partnership properties VI. Investment portfolio and estimated timelines YIT’S OWNERSHIP YIT’S EQUITY FAIR VALUATION COMPLETED AND ONGOING > €2 billion INVESTMENT STARTED Equity investments COMMITMENT Tripla Mall Ky 38.75% 117 M€ 4Q19 Associated companies and joint ventures Tieyhtiö Vaalimaa Oy (PPP
Slide 30: Together we can do it.
Together we can do it.