Slide 1: Financial Statements Bulletin 2022
Financial Statements Bulletin 2022 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: 2022 – progress on multiple fronts
2022 – progress on multiple fronts YIT’s businesses in Profitability Greater emphasis Russia sold; improved through on sustainability: full focus on strategy stabilising goal set at carbon- and core businesses performance and neutral construction productivity gains 3
Slide 4: Profitability improved in 2022
Profitability improved in 2022 Revenue, Adjusted EBIT, Adjusted EBIT-margin € million € million % -9% +29% +140 bps 2,652 2,403 110 4.6 85 3.2 2021 2022 2021 2022 2021 2022 4
Slide 5: Strategy execution progressed
FOCUS • Business portfolio streamlined by selling businesses in Russia; financial outcome weaker than originally anticipated • YIT’s core businesses fully focused on strategy execution and their differentiated core competencies Strategy PRODUCTIVITY • Annual cost savings from the existing operating
Slide 6: Housing: Performance impacted by the weakening market
Housing: Performance impacted by the weakening market Adjusted EBIT, € million • Lower number of apartment completions in 2022 109 (8.5%) 90 • Profitability impacted by (8.4%) lower sales • High customer satisfaction • Strong land bank in growing cities 2021 2022
Slide 7: Business Premises: Progress in improving profitability
Business Premises: Progress in improving profitability Adjusted EBIT, • Profitability supported by € million enhanced project management and two self- 20 developed projects (2.4%) • Increased construction 11 (1.4%) material costs had a negative impact on margins • Tendering focused on projects where
Slide 8: Infrastructure: Stabilising underlying performance
Infrastructure: Stabilising underlying performance Adjusted EBIT, • Underlying performance € million stabilised supported by enhanced project 6 management (1.2%) • Profitability negatively impacted by certain legacy projects -39 • Good accomplishments in (-7.2%) alliance projects 2021 2022
Slide 9: Property Development: Wind power development portfolio strengthened
Property Development: Wind power development portfolio strengthened Adjusted EBIT, € million • No major transactions in 2022 • Profitability burdened by an 18 impairment related to a development project • Significant wind power portfolio: 2,900 MW in preliminary study 0 phase and 550 MW in permittin
Slide 10: Profitability improved; order book remained solid
Profitability improved; order book remained solid 10
Slide 11: 2022 in numbers
2022 in numbers Adjusted EBIT Net debt EPS for Dividend per increased to amounted to continuing share1 of €110 €569 operations amounted to €0.18 million million (0.16) (85) (303) €0.28 (0.01) 1 Board of Directors’ proposal to AGM. 11
Slide 12: Order book remained solid; revenue impacted by lower apartment sales and completions
Order book remained solid; revenue impacted by lower apartment sales and completions Order book, € million Revenue, € million 3,847 3,702 3,528 3,069 2,652 2,403 2020* 2021 2022 2020* 2021 2022 * The comparability is affected by the sale of the Russian businesses. 12 Comparative periods’ figures bef
Slide 13: Profitability improved through stabilising performance and productivity gains
Adjusted EBIT bridge per segment, € million Profitability Comparative period supported by a wind park sale Positive impact from the reversal of internal margins improved Lower sales and 110 through completions stabilising 85 performance and Enhanced project Underlying performance stabilised; profita
Slide 14: Capital employed increased y-o-y
Capital employed increased y-o-y Operating cash flow after investments, Capital employed, continuing € million operations, € million 1,527 1,443 Q4 operating cash flow after 336 288 investments +€40M (133) 1,142 Supported by the sale of -281 the paving business 2020 2021 2022 2020 2021 2022 14 The c
Slide 15: Debt structure is well-balanced
Debt structure is well-balanced Distribution of interest-bearing debt, Maturity structure of interest-bearing debt1, € million € million 31 Dec. 21 31 Dec. 22 Other interest-bearing debt 45 57 Interest-bearing receivables Bonds 199 206 Cash and cash equivalents 150 Loans from financial 138 instituti
Slide 16: Equity ratio affected by negative result from discontinued operations
Net interest-bearing debt Gearing 628 569 68% 64% Equity ratio 303 € million 30% affected by negative 2020 2021 2022 2020 2021 2022 result from Interest cover ratio Equity ratio discontinued 40% 36% operations 7.1 33% 3.5 3.0 2020* 2021 2022 2020 2021 2022 16 The comparability is affected by the sal
Slide 17: We enter the challenging market in 2023 in a good position
We enter the challenging market in 2023 in a good position Our We made Solid order book profitability investments for supports our improved the future volumes 17
Slide 18: Strong headwinds from the market are expected to persist into 2023
Strong headwinds from the market are expected to persist into 2023 18
Slide 19: Market outlook remains muted in the short term
Market Housing Real estate Infra- structure outlook market market market remains Finland muted in Baltic countries the short Central Eastern Europe term Sweden Q4 market environment Short-term market outlook Good Normal Weak Improving Stable Weakening 19
Slide 20: Total number of apartments under construction amounted to 7,565
Total number of apartments under construction amounted to 7,565 Total number of apartments under construction and unsold, housing units • The number of unsold completed 10,000 100% 9,000 90% apartments increased to 794; more than 8,000 80% 80% are in the capital regions or university 7,000 70% 6,000
Slide 21: Completions of consumer apartments to remain stable in 2023
Completions of consumer apartments to remain stable in 2023 Estimated completions of consumer apartment projects under construction, housing units In 2023, consumer 3,242 1,519 completions peak in Q3 2,965 3,000 1,300 407 1,181 863 1,500 850 585 650 524 500 550 150 1,112 150 2,061 2,102 337 148 100
Slide 22: 2023 Group adjusted operating profit is expected to be lower than in 2022
YIT expects its Group adjusted operating profit for continuing 2023 Group operations to be lower than in 2022 (2022: EUR 110 million). adjusted In Housing, the demand outlook remains muted in the short term. In Business Premises and Infrastructure, the underlying operating operational performance is
Slide 23: Transformation program to generate efficiency gains
Program target • Improve performance and competitiveness • Inflation-adjusted run-rate cost savings of at least Transformation EUR 40 million by the end of 2024 • More than half of the planned run-rate cost savings program to achieved already during 2023 generate Program costs • Program costs are es
Slide 24: We accelerate our strategy implementation to improve performance and competitiveness
We accelerate our strategy implementation to improve our performance and competitiveness We are taking Focus on maintaining Green transition and decisive actions to capabilities to invest demand for generate while navigating sustainable efficiency gains through the homes creates challenging market o
Slide 25: Additional information
Follow YIT IR Additional information YIT’s financial reporting and AGM on Twitter: twitter.com/ in 2023 YITInvestors YIT Investor Relations Annual Review Week 7-8/2023 investorrelations@yit.fi Annual General Meeting 16 March Interim Report Q1/2023 3 May Samu Heikkilä Half-year Report 2023 1 August I
Slide 26: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Property Development highlights 26
Slide 27: I. Key figures
I. Key figures € million 10-12/22 10-12/21 1-12/22 1-12/21 Revenue 779 870 2,403 2,652 Operating profit 42 25 102 56 Operating profit, % 5.3 2.8 4.2 2.1 Adjusted operating profit 42 35 110 85 Adjusted operating profit margin, % 5.4 4.0 4.6 3.2 Result before taxes 35 17 74 22 Result for the period, c
Slide 28: II. Sales and start-ups: Housing Finland
The Housing segment in Finland II. Sales and start-ups Q4/2019-Q4/2022 SOLD APARTMENTS, units APARTMENT START-UPS, units 1,305 1,274 1,239 539 546 1,131 583 1,091 1,058 1,023 583 1,007 968 955 546 929 932 427 897 539 427 835 422 267 390 799 390 428 717 725 267 702 683 657 654 664 363 645 766 636 728
Slide 29: II. Sales and start-ups: Housing Central Eastern Europe
The Housing segment in Central Eastern Europe II. Sales and start-ups Q4/2019-Q4/2022 SOLD APARTMENTS, units APARTMENT START-UPS, units 1,096 636 1096 951 946 998 588 565 634 665 1,239 623 523 665 639 516 368 100 479 480 442 374 523 523 516 339 209 195 1,023 332 98 293 98 381 274 242 344 334 363 348
Slide 30: III. Investment portfolio and development highlights, 31 Dec. 2022
Property Development III. Investment portfolio and development highlights, 31 Dec. 2022 INVESTMENT PORTFOLIO EUR million Value1 Change 10/22 - 12/222 Change 1/22 - 12/222 Housing 73 2 16 Commercial 205 -3 1 Infra 6 – -1 Total 283 -1 16 1 Book value of Property Development´s equity investment includi
Slide 31: Follow us on
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