Slide 1: Financial Statements Bulletin 1-12/2023
Financial Statements Bulletin 1-12/2023 Heikki Vuorenmaa − President and CEO Tuomas Mäkipeska − CFO Aroma Park, Warsaw, Poland
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: Operating cash flow after investments and financial position improved towards the end of the year
Operating cash flow after investments and financial position improved towards the end of the year Positive development Underlying operational Significant progress in Housing CEE, low performance improved in cost management consumer sales in in Business Premises and capital release Finland and Infras
Slide 4: 2023 in brief
2023 in brief • Unprecedentedly challenging housing market in Finland • Capital release actions, released in June 2023, are in the beginning of the year, followed by a slow market progressing according to plan recovery and overall weak market • Actions completed by the end of 2023 will result in • Y
Slide 5: Adjusted operating profit amounted to EUR 41 million in 2023
Adjusted operating profit amounted to EUR 41 million in 2023 Revenue, Adjusted EBIT, Adjusted EBIT-margin € million € million % -10% -62% -270 bps 2,403 2,163 110 4.6 41 1.9 2022 2023 2022 2023 2022 2023 5
Slide 6: Finnish housing demand continued slow; profitability in Infrastructure increased
Finnish housing demand continued slow; profitability in Infrastructure increased Housing Business Premises Infrastructure Healthy demand in CEE, with Rising yields and high construction Adj. EBIT in Finland all-time-high operating profit in 2023 material prices in fixed price projects EUR 18 million
Slide 7: Housing: Low consumer sales in Finland, all-time high profit in CEE
Housing: Low consumer sales in Finland, all-time high profit in CEE • Deep slowdown in demand affected the Finnish housing market in 2023, overall new apartment sales decreased by Adjusted EBIT, over 60% € million • Profitability was impacted by lower apartment sales in Finland, 98 offset by increas
Slide 8: Consumer apartment sales in CEE increased 67% y-o-y in Q4
Consumer apartment sales in CEE increased 67% y-o-y in Q4 Sold to consumers, housing units • Consumer sales in Finland increased by +3% and in CEE by 690 +8% during the fourth quarter 520 • Third consecutive quarter for the 270 353 338 342 285 288 322 segment with improved sales 137 132 234 420 160
Slide 9: We have adapted our production to mitigate the changed market conditions
We have adapted our production to mitigate the changed market conditions Total number of apartments under construction and unsold, housing units • Total number of apartments 10,000 100% 9,000 90% under construction was 3,393 8,000 7,000 80% 70% (7,565), majority of which located 6,000 60% in CEE cou
Slide 10: Most of YIT's completions in 2024 will take place in markets with healthier demand
Most of YIT’s completions in 2024 will take place in markets with healthier demand Estimated completions of consumer apartments under construction, housing units 2,965 1,519 2,602 863 407 1,266 1,780 872 730 585 650 568 1,200 1,112 432 268 540 450 2,102 150 350 330 450 1,336 458 435 432 462 50 300 4
Slide 11: Portfolio of unsold completed apartments in Finland is well-balanced
Portfolio of unsold completed apartments in Finland is well-balanced Sales status of completed housing projects Size distribution of the unsold completed with unsold apartments in Finland by region apartments in Finland 522 • Total of 890 completed unsold apartments in Finland distributed across 59
Slide 12: Finnish housing market completions outlook Q4 2023 – Q4 2025
Finnish housing market completions outlook Q4 2023 – Q4 2025 Self-developed housing unit completions in the Finnish market by quarter • 4,200 unsold completed apartments in Finland at the end of 2023, out of which 890 (20%) YIT’s 3,500 Sold completions Unsold completion • We will see a clear drop in
Slide 13: Infrastructure: Profitability and order book increased
Infrastructure: Profitability and order book increased Adjusted EBIT, • Adjusted operating profit improved supported by the € million improved performance of projects in Finland 14 • Finnish operations continued on a good track with (3.3%) adjusted operating profit increasing to EUR 18 million (16)
Slide 14: Business Premises: A challenging year impacted by inflation and rising yields
Business Premises: A challenging year impacted by inflation and rising yields Adjusted EBIT, • Rising yields and high construction material € million prices in fixed price projects started before the 16 surge in price inflation burdened the (2.0%) profitability • Underlying performance improved from
Slide 15: Market environment remained stable; Finland housing market expected to continue to be weak in H1/24
Market environment remained Housing Real estate Infra- structure stable; market market market Finland housing market in Baltic countries Finland Central Eastern Europe expected to continue to be Q1 market environment Good Normal Weak Short-term market outlook Improving Stable Weakening weak in H1/24
Slide 16: Cash flow and financial position improved towards the end of the year
Cash flow and financial position improved towards the end of the year Order book Adjusted EBIT Operating cash Net debt amounted to at flow after at €3,157 €41 investments was €795 million million €-137 million (Q3/23: 3,391) (110) (615) million (Q3/23: 869) (-285) 16
Slide 17: Order book on a positive track in Infrastructure
Order book on a positive track in Infrastructure Order book, € million • Order book improved from the 3,702 3,542 3,540 3,391 comparison period and Q3 in 3,157 Infrastructure. Stable order intake in Business Premises • Order book in Business Premises includes EUR 322 million of service periods for l
Slide 18: Profitability burdened by housing
Adjusted EBIT bridge per segment, € million Low consumer sales in Finland; Profitability 110 supported by all-time high adjusted EBIT in CEE burdened by housing Profitability affected by the decline in fair values and higher construction material prices, market underlying performance improved headwi
Slide 19: Cash flow improved as a result of the successful efficiency actions
Cash flow improved as a result of the successful efficiency actions Operating cash flow after investments, Capital employed, € million € million 400 1800 300 1600 200 1400 100 1200 0 1000 -100 800 -200 600 -300 400 -400 200 -500 0 Operative cash flow after investments, € million Capital employed, se
Slide 20: More than EUR 200 million of efficiency actions taken
More than EUR 200 million of efficiency actions taken Capital gains and releases Net working capital efficiencies • Sale of the renewable energy business • Sale of the Maistraatinportti office property • Cash conversion process efficiencies and • Plots in Finland and CEE countries cost efficiency me
Slide 21: Net debt decreased during the fourth quarter
Net debt decreased during the fourth quarter Distribution of key assets in balance sheet, Distribution of interest-bearing debt, € million € million 1,900 Investments 291 Housing company loans have long maturities, and the buyer is responsible 390 for the repayment of the loan after sale. Completed
Slide 22: Gearing improved in the fourth quarter
Equity ratio Gearing 40% 35% 101%104%105% 94% Gearing 33% 32% 32% 33% 70% improved 30% in the fourth quarter Interest cover ratio Maturity structure of interest-bearing debt* 189 7.1 155 139 4.8 € million 3.5 3.7 2.6 1.3 2024 2025 2026 2027- 31 Dec 22 31 Dec 23 *Excluding housing company loans relat
Slide 23: 2024 Group adjusted operating profit
YIT expects its Group adjusted operating profit for continuing operations to be EUR 20–60 million in 2024. The operating cash flow after investments is expected to be positive. 2024 Group adjusted The housing market recovery in Central Eastern Europe is expected to continue. In Finland, the housing
Slide 24: Actions to improve the financial position continue
Actions to improve the financial position continue Our underlying Ongoing Cash flow asset base is actions to improvements on a strong improve capital good track, efficiency and indebtedness net working trending capital downwards 24
Slide 25: Our agenda is focused and creates sustainable long-term competitive advantages
Our agenda is focused and creates sustainable long-term competitive advantages Improve Serving Evaluating risks and Segments customers with opportunities profitability, while market-leading arising from the substantially capabilities market releasing capital employed 25
Slide 26: Additional information
Follow YIT IR on X: Additional information x.com/ YITInvestors YIT’s YIT Investor Relations Interim Report Q1/2024 investorrelations@yit.fi will be published on Tuesday, Essi Nikitin 30 April VP, Investor Relations 2024 +358 50 581 1455 essi.nikitin@yit.fi 26
Slide 27: Appendices
Appendices I. Key figures II. Housing sales and start-ups 27
Slide 28: I. Key figures
I. Key figures € million 10-12/23 10-12/22 1-12/23 1-12/22 Revenue 597 779 2163 2,403 Operating profit 33 42 51 102 Operating profit, % 5.5 5.3 2.4 4.2 Adjusted operating profit 13 42 41 110 Adjusted operating profit margin, % 2.2 5.4 1.9 4.6 Result before taxes 13 35 -5 74 Result for the period, co
Slide 29: II. Sales and start-ups Q1/2020-Q4/2023: Housing Finland
The Housing segment in Finland II. Sales and start-ups Q1/2020-Q4/2023 SOLD APARTMENTS, units APARTMENT START-UPS, units 1,305 1,239 539 583 1,131 1,058 1,023 968 583 955 1,007 539 929 427 932 835 422 897 427 799 390 267 390 428 267 702 717 725 664 363 636 645 683 657 654 766 438 363 198 428 198 656
Slide 30: II. Sales and start-ups Q1/2020-Q4/2023: Housing CEE
The Housing segment in Central Eastern Europe II. Sales and start-ups Q1/2020-Q4/2023 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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