Slide 1: Interim Report 1-9/2023
Interim Report 1-9/2023 Heikki Vuorenmaa − President and CEO Tuomas Mäkipeska − CFO Tampere Tramway, Finland
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: Q3 – cash flow improved significantly; net debt remained stable during the quarter
Q3 – cash flow improved significantly; net debt remained stable during the quarter Positive development Profit improved in the Significant progress continued in Housing Infrastructure and in robust cost CEE, low consumer Business Premises management and sales in Finland segments capital efficiency m
Slide 4: Q3 was another step forward for YIT
• Supported by the actions taken to improve net working capital efficiency, operating cash flow for the quarter improved significantly from the comparison period. • Transformation progressing ahead of schedule and with lower than anticipated costs. Q3 was • With the actions taken by the end of the t
Slide 5: Adjusted operating profit amounted to EUR 16 million in Q3
Adjusted operating profit amounted to EUR 16 million in Q3 Revenue, Adjusted EBIT, Adjusted EBIT-margin € million € million % -1% -23% 553 -80 bps 560 21 16 3.7 2.9 Q3/22 Q3/23 Q3/22 Q3/23 Q3/22 Q3/23 5
Slide 6: Finnish housing demand continued slow; supported by the contracting segments
Finnish housing demand continued slow; supported by the contracting segments Housing Business Premises Infrastructure Healthy demand in CEE, with Revenue increased, supported Adj. EBIT in Finland €3 million (4.1%); consumer sales increasing y-o-y. by the sale of Maistraatinportti. Sweden €-1 million
Slide 7: Housing: Healthy demand in CEE offsetting low consumer sales in Finland
Housing: Healthy demand in CEE offsetting low consumer sales in Finland • Profitability impacted by lower apartment sales in Adjusted EBIT, Finland, partly offset by increasing sales in CEE € million • 108 new start-ups during Q3, of which 32 in Finland and 76 In CEE 17 (7.2%) 10 • Despite the incre
Slide 8: Consumer apartment sales in CEE increased 49% y-o-y
Consumer apartment sales in CEE increased 49% y-o-y Sold to consumers, housing units • Consumer sales in Finland increased +12% and in CEE +11% 690 compared to Q2 520 • Second consecutive quarter for the 270 353 338 285 288 322 segment with improved sales 137 132 234 420 160 183 204 • During the qua
Slide 9: The increase of the capital tied up to apartments will slow down
The increase of the capital tied up to apartments will slow down Total number of apartments under • Total number of apartments under construction and unsold, housing units 10,000 100% construction was 4,553 (8,976) 9,000 90% 8,000 80% • The number of unsold completed 7,000 70% 6,000 60% apartments i
Slide 10: Q4 completions will take place in the CEE
Q4 completions will take place in the CEE Estimated completions of consumer apartments under construction, housing units 3,242 1,519 2,965 2,880 407 1,150 1,181 863 1,526 730 585 568 800 1,112 432 268 450 2,061 2,102 150 1,354 458 280 100 435 432 462 400 350 280 50 110 50 50 FY 2021 FY 2022 FY 2023
Slide 11: Portfolio of unsold completed apartments is well-balanced in terms of location and size
Portfolio of unsold completed apartments is well-balanced in terms of location and size Sales status of completed housing projects Size distribution of the unsold completed with unsold apartments in Finland by region apartments in Finland 468 • Total of 743 completed unsold apartments in Finland dis
Slide 12: Finnish housing market completions outlook Q4 2023 – Q4 2025
Finnish housing market completions outlook Q4 2023 – Q4 2025 Number of self-developed housing unit completions in the Finnish market by quarter • Industry is balancing out followed by a clear drop in supply 3,500 3,113 Sold completions Unsold completion • Implications to overall construction 3,000 i
Slide 13: Business Premises: Revenue and profit improved
Business Premises: Revenue and profit improved Adjusted EBIT, € million • Revenue increased supported by the 4 sale on Maistraatinportti office property (1.6%) 3 • Higher construction material prices (1.4%) weighed on margins in fixed price projects started before the surge in price inflation • Orde
Slide 14: Infrastructure: Stable order book, improved profitability
Infrastructure: Stable order book, improved profitability Adjusted EBIT, • Underlying performance stable, € million supported by enhanced project 2 management (1.9%) • Low-margin legacy projects continued 1 to weigh on profitability in Sweden (0.7%) • Good accomplishments in alliance projects – the
Slide 15: Market environment remained stable; housing market in Finland expected to continue to be weak
Market Infra- environment Housing Real estate structure market market market remained Finland stable; housing Baltic countries market in Central Eastern Europe Finland Sweden expected to continue to be Q3 market environment Short-term market outlook weak Good Normal Weak Improving Stable Weakening 1
Slide 16: Q3 in numbers
Q3 in numbers Order book Adjusted EBIT Operating cash Net debt amounted to decreased to flow after amounted to €3,391 €16 investments amounted to €820 million million €-3 million (Q2/23: 3,540) (21) (590) million (Q2/23: 819) (-149) 16
Slide 17: Stable order books in Business Premises and Infrastructure during Q3
Stable order books in Business Premises and Infrastructure during Q3 Order book, € million • Stable order intake in Business 4,089 3,702 Premises and Infrastructure 3,542 3,540 3,391 • Order book in Business Premises includes EUR 332 million of service periods for life-cycle projects • Order book in
Slide 18: Profitability burdened by housing market headwinds in Finland
Adjusted EBIT bridge per segment, € million Profitability Low consumer sales in Finland; supported by healthy demand in CEE burdened by 21 housing 16 market headwinds in Finland Q3/22 HO BP IN Other Q3/23 18
Slide 19: Cash flow supported by actions to improve capital efficiency
Cash flow supported by actions to improve capital efficiency Operating cash flow after investments, Capital employed, € million € million 1,626 1,636 1,632 14 1,444 1,443 40 -3 -149 -211 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 19
Slide 20: Net debt remained stable during the quarter
Net debt remained stable during the quarter Distribution of key assets in balance sheet, Distribution of interest-bearing debt, € million € million Investments 1,916 300 Housing company loans have long Completed maturities, and the buyer is responsible 319 for the repayment of the loan after sale. I
Slide 21: Gearing at 100%; measures ongoing to manage maturity structure
Equity ratio Gearing 40% 36% 95% 99% 100% Gearing at 33% 34% 33% 33% 68% 64% 100%; 30% measures ongoing to Maturity structure of manage Interest cover ratio interest-bearing debt** maturity 3.5 7.1 4.9 3.9 2.8 132 150 139 structure € million 60 3.0 2023 2024 2025 2026 2027- 30 Sep 22 30 Sep 23 *Bala
Slide 22: 2023 Group adjusted operating profit outlook
The housing market recovery in Central Eastern Europe is 2023 Group expected to further continue. In Finland, the market is expected to continue to be weak in the fourth quarter. In adjusted Business Premises and Infrastructure, the underlying operational performance is expected to improve, but low-
Slide 23: Actions to improve the financial position are starting to have an effect
Actions to improve the financial position are starting to have an effect Our underlying Several ongoing Cash flow asset base is actions to improve improvements are on strong the capital a good track and the efficiency net debt has stabilised 23
Slide 24: Navigating through the current cycle with clear focus
Navigating through the current cycle with clear focus Robust cost Serving Evaluating risks and management and customers with opportunities capital efficiency market-leading arising from the measures capabilities market 24
Slide 25: Additional information
Follow YIT IR on Twitter: Additional information twitter.com/ YITInvestors YIT’s YIT Investor Relations Financial Statements Bulletin 2023 investorrelations@yit.fi will be published on Friday, Essi Nikitin 9 Feb VP, Investor Relations 2024 +358 50 581 1455 essi.nikitin@yit.fi 25
Slide 26: Appendices
Appendices I. Key figures II. Housing sales and start-ups 26
Slide 27: I. Key figures
I. Key figures € million 7-9/23 7-9/22 1-12/22 Revenue 553 560 2,403 Operating profit 13 16 102 Operating profit, % 2.4 2.9 4.2 Adjusted operating profit 16 21 110 Adjusted operating profit margin, % 2.9 3.7 4.6 Result before taxes 1 11 74 Result for the period, continuing operations 1 7 63 Result f
Slide 28: II. Sales and start-ups Q1/2020-Q3/2023: Housing Finland
The Housing segment in Finland II. Sales and start-ups Q1/2020-Q3/2023 SOLD APARTMENTS, units APARTMENT START-UPS, units 1,305 1,239 539 1,131 583 1,058 583 955 1,007 1,023 932 968 897 929 427 427 539 267 390 835 422 428 799 390 717 725 683 657 654 267 702 766 664 363 636 645 363 198 665 263 422 438
Slide 29: II. Sales and start-ups Q1/2020-Q3/2023: Housing CEE
The Housing segment in Central Eastern Europe II. Sales and start-ups Q1/2020-Q3/2023 SOLD APARTMENTS, units APARTMENT START-UPS, units 1,096 998 951 946 577 740 588 565 711 634 623 639 195 523 242 522 368 100 479 480 374 523 523 519 516 522 339 209 195 348 332 274 397 293 98 363 381 255 262 242 334
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