Yit Oyj · OMXHEX:YIT
Yit Oyj — Q4 2020 Earnings Presentation
37 slides from Yit Oyj's earnings presentation, Feb 3, 2021
Slide 1: Financial statements bulletin 2020
MÄEPEALSE RESIDENTIAL AREA, TALLIN, ESTONIA Financial statements bulletin 2020 Antti Inkilä − Interim 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: Full-year 2020
HELSINKI-VANTAA AIRPORT, FINLAND 1 Full-year 2020 3 Financial statements bulletin 2020
Slide 4: Safety is in the core of our operations
Safety is in the core of our operations COMBINED LOST TIME INJURY FREQUENCY (LTIF), rolling 12 months 12 LTIF, rolling 12 months 10 8 6 9.8 injuries of YIT’s own 4 employees and 2 subcontractors per million hours worked 0 4Q19 1Q20 2Q20 3Q20 4Q20 LTIF (per one million hours worked) LTIF target (<9)
Slide 5: Great progress in several areas in 2020
Great progress in several areas in 2020 Strategy execution COVID-19: continued: Successful actions to business portfolio minimise impacts streamlined 21% Solid project portfolio decrease of CO2 emissions 5 Financial statements bulletin 2020 NAUJASIS SKANSENAS, VILNIUS, LITHUANIA
Slide 6: Financial performance disappointing
Financial performance disappointing ADJUSTED OPERATING PROFIT, € million Sales increased, Financial margins improved settlements -50 M€ Fair value changes, y-o-y impact -94 M€ 2019 Housing Housing Business Infrastructure Partnership Other 2020 FIN&CEE RUS premises properties 6 Financial statements b
Slide 7: Stepping up project management
MARJAMAA, JÄRVEKÜLA, ESTONIA Stepping up project management Project 1 forecasting and reporting 2 Supply chain management Common 3 Production and personnel 4 management system 7 Financial statements bulletin 2020
Slide 8: Gearing improved, ROCE weakened
Strategic targets Gearing improved, ROCE weakened ROCE, % GEARING, % 81 >12 68 10 54 <50 6 5 1 // 2 // 2018 2019 2020 Target 2018 2019 2020 Target 1pro forma, excluding IFRS 16 2excluding IFRS16 8 Financial statements bulletin 2020
Slide 9: Dividend proposal 0.14 € per share
Strategic targets Dividend proposal 0.14 € per share EMISSION INTENSITY OF DIVIDEND PER SHARE, € OWN OPERATIONS, tCO2e/M€ BASE YEAR 1 0.12 -21% GROWING -50% 0.27 0.28 0.14 n/a 2 // // 2018 2019 2020 Target 2018 2019 2020 Target 1 Additional dividend. 2 Board of Director’s proposal to AGM. 9 YIT Inve
Slide 10: Q4 / 2020
HELSINKI-VANTAA AIRPORT, FINLAND 2 Q4 / 2020 10 Financial statements bulletin 2020
Slide 11: Q4: Revenue peaked as expected
Q4: Revenue peaked as expected REVENUE, € million ORDER BOOK, € million 1,152 4,131 4,074 3,848 3,831 975 3,528 708 700 687 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 11 Financial statements bulletin 2020
Slide 12: Q4: Fair value change of €-16m burdened the result
Q4: Fair value change of €-16m burdened the result ADJUSTED OPERATING PROFIT, € million 121 Q4 adjusted 56 operating profit margin 8 5 16 5.7% (10.5) 4Q19 1Q20 2Q20 3Q20 4Q20 12 Financial statements bulletin 2020 TRIPLA WORKERY EAST, HELSINKI, FINLAND
Slide 13: Q4: Solid results in housing, business premises returned positive
Q4: Solid results in housing, business premises returned positive ADJUSTED OPERATING PROFIT, € million 4Q19 4Q20 81 65 39 9 11 6 2 1 -10 -15 Housing FIN Housing Business Infrastructure Partnership & CEE RUS premises properties 13 Financial statements bulletin 2020 TARMO, ST.PETERSBURG, RUSSIA
Slide 14: Consumer apartment completions peaked in Q4 as expected
KONEPAJA, HELSINKI, FINLAND Housing Finland and CEE Consumer apartment completions peaked in Q4 as expected COMPLETED CONSUMER APARTMENTS, units Adjusted operating profit 2,000 Strong €65 apartment sales million (39) 1,000 Apartment Living services start-ups at continued to good level in grow Finlan
Slide 15: Strong apartment sales continued
TARMO, ST.PETERSBURG, RUSSIA Housing Russia Strong apartment sales continued APARTMENT SALES, units Adjusted operating profit 1,500 Margins €11 continued to increase million (9) 1,000 Russian escrow 500 Strategic accounts measures amounted to €55 proceeding as planned 0 million (1) 4Q19 1Q20 2Q20 3Q
Slide 16: Returned profitable
REDING TOWER 2, BRATISLAVA, SLOVAKIA Business premises Returned profitable ORDER BOOK, € million Adjusted Solid and healthy 1,000 operating profit order book: €1 77% million (-10) to public sector 500 Actions to Sale of several improve project business management premises ongoing 0 4Q19 1Q20 2Q20 3Q
Slide 17: Weak result due to margin reductions
AALTO-YLIOPISTO METRO STATION, HELSINKI, FINLAND Infrastructure Weak result due to margin reductions ORDER BOOK, € million Adjusted Sale of 1,500 operating profit Murtomäki €2 wind park completed million (6) 1,000 Production 500 Margin volumes reductions in decreased in certain projects Norway and 0
Slide 18: Fair value change burdened the result
PIKKUSIRKKU, RIIHIMÄKI, FINLAND Partnership properties Fair value change burdened the result PORTFOLIO VALUE, € million Adjusted Fair value operating profit change of €-15 -16 M€ from Mall of million (81) Tripla investment Workery+ Sale of housing concept stock of 0 launched in ÅB Kodit I Ky Jan 202
Slide 19: Full-year cash flow after investment solid at €336m
Full-year cash flow after investment solid at €336m OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million -30 -37 -36 247 -52 -3 -81 -2 -13 132 146 -4 -48 -9 -9 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Associated companies and joint ventures Plot investments 1
Slide 20: Balance sheet strengthened, net interest-bearing debt -27% y-o-y
Balance sheet strengthened, net interest-bearing debt -27% y-o-y NET INTEREST-BEARING DEBT, MATURITY STRUCTURE1, € million € million 213 942 862 715 740 150 628 107 20 0 9 4Q19 1Q20 2Q20 3Q20 4Q20 2021 2022 2023 2024 2025 2026- 1 Excluding housing company loans related to unsold apartments, € 154 mi
Slide 21: Financial key ratios: Gearing improved
Financial key ratios: Gearing improved EQUITY RATIO AND GEARING, % NET DEBT / ADJUSTED EBITDA ratio 6 100% 5 80% 5.0 68% 4 60% 3 40% 2 33% 20% 1 0% 0 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20 Gearing Equity ratio 21 Financial statements bulletin 2020
Slide 22: Outlook and guidance
HELSINKI-VANTAA AIRPORT, FINLAND 3 Outlook and guidance 22 Financial statements bulletin 2020
Slide 23: Q1 market outlook relatively stable with limited visibility
Q1 market outlook relatively stable with limited visibility Business Partnership Housing premises Infrastructure properties Finland Russia Baltic countries Central European countries Sweden Q4/2020 market situation Q1/2021 market outlook Good Normal Weak Improving Stable Weakening 23 Financial state
Slide 24: Completions peaked in Q4, similar pattern expected in 2021
Completions peaked in Q4, similar pattern expected in 2021 ESTIMATED COMPLETIONS OF CONSUMER APARTMENT PROJECTS UNDER CONSTRUCTION, units In addition, 1,740 revenue from 1,654 apartments under construction recognised 1,500 over time (POC): 738 1,300 • 2,101 for investors • 4,302 in Russia 2,908 2,57
Slide 25: Guidance for 2021
Guidance for 2021 • The fourth quarter is expected to be clearly the strongest. Group adjusted operating profit • Dependent on certain project completions and contract closings. to be • COVID-19: higher • temporary shutdowns or slower progress on sites and delayed than in 2020 completions could lead
Slide 26: Management agenda
Management agenda SUCCESS WITH TOP PERFORMANCE CUSTOMERS AND PARTNERS Improve project Continue to expand management to drive digital services profitability STEPPING UP SUSTAINABILITY HAPPY PEOPLE Continue to develop Ensure health and climate action plan safety of our people 26 Financial statements b
Slide 27: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Tommi Järvenpää YIT’s Annual Review Vice President, Investor Relations will be published +358 40 576 0288 tommi.jarvenpaa@yit.fi during week Hanna Valonen Investor Relations Specialist 8/2021 the latest +358 400 846 556 Follow YI
Slide 28: Appendices
HELSINKI-VANTAA AIRPORT, FINLAND 4 Appendices 28 Financial statements bulletin 2020
Slide 29: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Share ownership IV. Debt structure V. Investment portfolio KEILALAMPI, ESPOO, FINLAND 29 Financial statements bulletin 2020
Slide 30: I. Key figures
I. Key figures € million 10-12/20 10-12/19 1-12/20 1-12/19 Revenue 975 1,152 3,069 3,392 Operating profit 55 97 35 80 Operating profit margin, % 5.6 8.4 1.1 2.4 Adjusted operating profit 56 121 85 165 Adjusted operating profit margin, % 5.7 10.5 2.8 4.9 Result before taxes 46 88 -6 40 Result for the
Slide 31: II. Sales and start-ups 2019-2020: Housing Finland
Housing Finland II. Sales and start-ups 2019-2020 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 897 1,023 845 1000 907 546 428 863 539 800 261 717 725 799 247 766 800 353 728 363 198 664 363 636 600
Slide 32: II. Sales and start-ups 2019-2020: Housing CEE
Housing CEE II. Sales and start-ups 2019-2020 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 192 1000 apartments further to consumers (4Q19: 69) 700 634 600 368 800 500 665 442 590 600 400 98
Slide 33: II. Sales and start-ups 2019-2020: Housing Russia
Housing Russia II. Sales and start-ups 2019-2020 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 928 862 320 807 800 775 80% 725 750 779 807 800 722 300 662 571 594 600 60% 600 62% 320 483 582 58% 153 54% 399 400 483 475 4
Slide 34: III. Share ownership, 31 December 2020
III. Share ownership, 31 December 2020 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE- MAJOR SHAREHOLDERS REGISTERED AND NON-FINNISH OWNERSHIP 47,491 % OF SHARE 46,704 SHAREHOLDERS SHARES 44,312 CAPITAL 43,752 43,619 43,178 41,944 24,650,000 11.68 40,016 1. Tercero Invest AB 36,547 36,064 2. Varma Mutu
Slide 35: IV. Debt structure, 31 December 2020
IV. Debt structure, 31 December 2020 INTEREST-BEARING DEBT PORTFOLIO, INTEREST RATE DISTRIBUTION OF € million INTEREST PORTFOLIO1 5% 22% 21% 39% 19% 61% 18% 15% Bonds Commercial papers Housing corporation loans related to unsold apartments Fixed rate Floating rate Loans from financial institutions 1
Slide 36: V. Investment portfolio and estimated timelines
Partnership properties V. 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 p
Slide 37: Together we can do it.
Together we can do it.