Yit Oyj · OMXHEX:YIT
Yit Oyj — Investor Day (September 2024)
29 slides from Yit Oyj's investor day presentation, Sep 3, 2024
Slide 1: YIT Analyst Day
YIT Analyst Day 3 September 2024 Helsinki
Slide 2: Agenda
Agenda Presentations and discussion • Vesa Pirinen / Transformation program in a nutshell • Mika Toivonen / YIT’s procurement transformation • Tiina Siika-aho / Building effective project management • Pekka Helin / Commercial excellence
Slide 3: Transformation program in a nutshell
Transformation program in a nutshell Vesa Pirinen SVP, Transformation
Slide 4: What is the Transformation program?
What is the Transformation program? Cutting costs Improving competitiveness Transforming the company 1 2 3 4 Making procurement Improving project Improving Pricing management – more efficient management productivity best market price 5 6 7 8 Transformation Efficient IT Improving Releasing Business p
Slide 5: The current state and how to succeed
The current state and how to succeed How to succeed – actions Current state Change measurement results ongoing • The target of EUR 40 million in savings • Employee engagement was reached by 06/2024. • Active dialogue/communication in all • Capital releasing proceeding levels and channels • Great int
Slide 6: YIT's procurement transformation
CONFIDENTIAL, FOR DISCUSSION AND PLANNING PURPOSES ONLY YIT’s procurement transformation Mika Toivonen VP, Procurement
Slide 7: Procurement function had a significant role in achieving the EUR 40 million savings target
CONFIDENTIAL, FOR DISCUSSION AND PLANNING PURPOSES ONLY Procurement function had a significant role in YIT achieving the EUR 40 million savings target by June 2024 Procurement is YIT’s transformation Procurement played a targeting savings from program succeeded in significant role in the EUR ~1.6b d
Slide 8: Procurement function transforming towards a category-led operating model
CONFIDENTIAL, FOR DISCUSSION AND PLANNING PURPOSES ONLY YIT’s procurement function is transforming itself towards a category-led operating model, which has already yielded significant results We are renewing procurement… …and are already seeing the results • In order to decrease Stronger supplier pa
Slide 9: New model built in collaboration with production and design operations
CONFIDENTIAL, FOR DISCUSSION AND PLANNING PURPOSES ONLY The new model is being built in collaboration with the production and design operations, to ensure targeting sustainable and holistic savings How we run the The Procurement transformation is being One example of what we have transformation impl
Slide 10: Cost influence in a construction project
Cost influence in a construction project
Slide 11: Building effective project management
Building effective project management Tiina Siika-aho Development Manager
Slide 12: Strengthening our capabilities in project management
Strenghtening our capabilities in project management Added value for customer High quality Effective Profitable and predictable Project management improvement is a continuous process for us in YIT
Slide 13: How we have strengthened our project management expertise
How we have strengthened our project management expertise Continuos improvement Set a mindset Project management training program Focus on learning in practice Support model for project starts Ensure efficient project start Lead and manage with knowledge Project situational awarness
Slide 14: Strong positive trend in net project margin deviations since 2019
Strong positive trend in net project margin deviations since 2019 -40% -87% 0 M€ Year to date Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 2024
Slide 15: What enables us to succeed in project management now and in the future
What enables us to succeed in project management now and in the future Change management and process development Clear role and ownership in business segments Systematic and common way to improve our cabapilites Less variations Engaged and well-being employees
Slide 16: Commercial excellence
Commercial excellence YIT Housing | Pekka Helin SVP, Customerships and Living Services
Slide 17: Commercial Excellence – agenda
Commercial Excellence – agenda CUSTOMER NEEDS, MARKET MARKETTRENDS AND TRENDS ANDCHANGES CHANGES 1 SEGMENTATION AND OUR VALUE PROPOSITION 2 3 BUSINESS BUSINESSLOGIC, LOGIC, 3 COMPETITION COMPETITIVE ENVIRONMENT ENVIRONMENT 4 PRICING PRICINGAND ANDSALES EXCELLENCE EXCELLENCE SALES 4 6 SUMMARY 5 CUSTO
Slide 18: Customer needs, segmentation and value proposition
CUSTOMER NEEDS, Customer needs, segmentation and value proposition 1 SEGMENTATION AND OUR VALUE PROPOSITION Our value proposition: Living made easy YIT offers contemporary solutions for people who want to experience the benefits of modern living, either as a resident or as an investor. We make both
Slide 19: Market trends and changes
Market trends and changes 2 MARKET TRENDS AND CHANGES Consumer market • Location/certain area, safety and plot ownership are increasing in importance for consumers • Each customer has her/his own personal set of criteria • Affordability of housing in general still reasonably good in all the operatin
Slide 20: Competitive environment
Competitive environment 3 COMPETITIVE ENVIRONMENT Finland 2023/11 Market share % In most of the markets YIT is one of the biggest players and has a high brand preference. YIT T2H Pohjola Peab Lapti Lehto Bonava Lujatalo Skanska Strong brand and customer experience are the Rakennus Source: STH Group
Slide 21: Business logic and pricing
4 BUSINESS LOGIC, Business logic and pricing PRICING AND SALES EXCELLENCE “We provide the framework for easy and convenient housing that is aligned with the principles of sustainable development.” Consumer sales Consumer sales Subsidized - Private investment Investor sales - Homes for own use produc
Slide 22: Business logic and pricing
4 BUSINESS LOGIC, Business logic and pricing PRICING AND SALES EXCELLENCE “We provide the framework for easy and convenient housing that is aligned with the principles of sustainable development.”
Slide 23: Business logic and pricing
Business logic and pricing 4 BUSINESS LOGIC, PRICING AND SALES EXCELLENCE “Target is to achieve the optimal balance between project profitability (project income) and capital turnover (sales speed).”
Slide 24: Success in sales and marketing
4 BUSINESS LOGIC, Success in sales and marketing PRICING AND SALES EXCELLENCE “Most of the leads are from digital channels, leads are nurtured until they become opportunities”
Slide 25: New concepts
4 BUSINESS LOGIC, New concepts PRICING AND SALES EXCELLENCE
Slide 26: Customer satisfaction and value creation
5 CUSTOMER Customer satisfaction and value creation SATISFACTION AND VALUE CREATION Finland Baltic countries and CEE NPS Sales 95 NPS The key activities Move-in • Excellent quality – 59 faultlessness of apartments NPS Move-in • Proactiveness 57 • Value for money NPS • Customer care Warranty NPS Warr
Slide 27: Summary
Summary 6 SUMMARY • B2C business is increasingly digital, data and analytics is a key capability • Multiple sources of data • Prescriptive analytics to be developed – e.g. for pricing excellence • Pricing development – analysis and agility • ”Elements of a good home” crystallizes the key competitive
Slide 28: Thank you, now it is time for questions!
Thank you, now it is time for questions! facebook.com/ linkedin.com/ x.com/ youtube.com/ instagram.com/ yitsuomi company/yit YITSuomi YITCorporation yitsuomi
Slide 29: Together we can do it.
Together we can do it.