Slide 1: Interim report 1-3/2021
TRIPLA WORKERY EAST, HELSINKI, FINLAND Interim report 1-3/2021 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 strengths to build upon
Markku Moilanen President and CEO Outstanding team spirit Competent, passionate people OUR STRENGHTS YIT brand TO BUILD UPON Quality of work Customer orientation 3 Interim report 1-3/2021
Slide 4: 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 4 Interim report 1-3/2021
Slide 5: Safety is our number one priority with everything we do
HAMINA–VAALIMAA MOTORWAY E18, FINLAND Safety is our number one priority with everything we do COMBINED 9.9 LOST TIME INJURY FREQUENCY (TARGET <9) Stagnant development for several years. Improvement actions needed. 5 Interim report 1-3/2021
Slide 6: 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 6 Interim report 1-
Slide 7: Q1 results
TRIPLA, HELSINKI, FINLAND Q1 results 7 Interim report 1-3/2021
Slide 8: 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 8 Interim report 1-3/2021
Slide 9: 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 10: 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 11: 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 11 Interim report 1-3/2021
Slide 12: 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 12 Interim report 1-3/2
Slide 13: 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 14: 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 15: 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 16: Outlook
TRIPLA, HELSINKI, FINLAND Outlook 16 Interim report 1-3/2021
Slide 17: 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 17 Interim report 1-3/2021 *E
Slide 18: 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 19: 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 19 Interim report 1-3/2021
Slide 20: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Tommi Järvenpää YIT’s Q2 half-year Vice President, Investor Relations report will be +358 40 576 0288 tommi.jarvenpaa@yit.fi published on Fri Hanna Valonen Investor Relations Specialist 30 Jul 2021 +358 400 846 556 Follow YIT IR
Slide 21: Appendices
TRIPLA, HELSINKI, FINLAND Appendices 21 Interim report 1-3/2021
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 1-3/2021
Slide 23: I. Key figures
I. Key figures € million 1-3/21 1-3/20 1-12/20 Revenue 606 708 3,069 Operating profit 14 -3 35 Operating profit margin, % 2.4 -0.4 1.1 Adjusted operating profit 21 8 85 Adjusted operating profit margin, % 3.5 1.2 2.8 Result before taxes 6 -16 -6 Result for the period 4 -10 -8 Result for the period,
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 1200 546 539 1200 1,091 1000 932 1,023 897 845 1000 907 546 267 863 539 428 835 800 261 717 725 799 247 766 800 353 267 728 363 198
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 800 Of projects earlier sold to YCE Housing I fund or a 998 JV, and recorded as investor sales, YIT sold 1 1000 apartments further to consumers (1Q20: 112) 700 634 600 368 800 523 500 665 442 523 600 590
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 928 862 320 807 819 800 775 80% 725 750 779 807 800 722 300 662 571 594 60% 600 548 66% 320 483 62% 600 153 582 58% 399 180 5
Slide 27: III. Number of completions
III. 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
Slide 28: IV. Share ownership, 31 March 2021
IV. Share ownership*, 31 March 2021 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE- MAJOR SHAREHOLDERS REGISTERED AND NON-FINNISH OWNERSHIP % OF SHARE SHAREHOLDERS SHARES CAPITAL 25,100,000 11.89 47,491 48,248 1. Tercero Invest AB 46,704 15,945,975 43,752 44,312 43,619 43,178 2. Varma Mutual Pension In
Slide 29: V. Debt structure, 31 March 2021
V. 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 30: 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 31: Together we can do it.
Together we can do it.