Yit Oyj · OMXHEX:YIT
Yit Oyj — Q2 2020 Earnings Presentation
33 slides from Yit Oyj's earnings presentation, Jul 28, 2020
Slide 1: Half-year report January-June 2020
MERENKULKIJANRANTA, HELSINKI, FINLAND Half-year report January-June 2020 Kari Kauniskangas, 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: Sustainable urban development is the core of our business
Sustainable urban development is the core of our business A LIFE CYCLE SERVICES B DEVELOPED REVENUE 450 M€ SERVICES PROJECT FLOW (rolling 12mth) X Sustainable PLOT RESERVE 4.3 Mm2 urban development LONG-TERM PROJECT EARNINGS EXECUTION PORTFOLIO VALUE 258 M€ ORDER BOOK 4.1 B€ 3 Half-year report Janua
Slide 4: Q2: Operations remained stable during the coronavirus pandemic with strong cash flow
Q2: Operations remained stable during the coronavirus pandemic with strong cash flow Financial settlements Strong liquidity and of €17 million in cash flow Business premises Apartment sales Order book grew by recovering towards the 6% end of quarter q-o-q 4 Half-year report January-June 2020 HOLIDAY
Slide 5: Materialised impacts of coronavirus pandemic moderate, uncertainties remain
Materialised impacts of coronavirus pandemic moderate, uncertainties remain Successfull actions • Speed and flexibility of organisation to adapt operations Q2 • Rapid proactive actions on sites ensuring continuity External impacts • Housing consumer sales dipped and started to recover • A few tempor
Slide 6: Order book increased 6% quarter-on-quarter
Order book increased 6% quarter-on-quarter REVENUE, € million ORDER BOOK, € million 1,152 4,764 4,652 4,131 4,074 3,848 808 757 708 700 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 6 Half-year report January-June 2020
Slide 7: Profitability negatively impacted by financial settlements
Profitability negatively impacted by financial settlements ADJUSTED OPERATING PROFIT, € million 121 Q2 adjusted operating profit margin 28 0.7% 26 8 5 (3.8) 2Q19 3Q19 4Q19 1Q20 2Q20 7 Half-year report January-June 2020 TRIPLA, HELSINKI, FINLAND
Slide 8: Adjusted operating profit per segment
Adjusted operating profit per segment € million 2Q19 2Q20 29 19 5 3 4 2 0 1 -3 -14 Housing FIN Housing Business Infrastructure Partnership & CEE RUS premises projects properties 8 Half-year report January-June 2020 HERTSI, HELSINKI, FINLAND
Slide 9: Housing Finland and CEE: Uncertainty affected consumer sales
KONEPAJA, HELSINKI, FINLAND Housing Finland and CEE Uncertainty affected consumer sales COMPLETED CONSUMER APARTMENTS, units Adjusted operating profit 2,000 Weaker sales €19 mix million (29) 1,000 Consumer sales Consumer recovering start-ups at from a drop in good level April 0 2Q19 3Q19 4Q19 1Q20 2
Slide 10: Housing Russia: Margins improved
TARMO, ST.PETERSBURG, RUSSIA Housing Russia Margins improved APARTMENT SALES, units Adjusted Revenue operating profit increased by €2 26% 1,000 million (-3) 500 Apartment Apartment sales grew start-ups stable in 3% continuing 0 y-o-y units 2Q19 3Q19 4Q19 1Q20 2Q20 Moscow and Moscow region Continuing
Slide 11: Business premises: Result burdened by financial settlements
REDING TOWER 2, BRATISLAVA, SLOVAKIA Business premises Result burdened by financial settlements ORDER BOOK, € million Adjusted 1,500 operating profit Financial €-14 settlements in two projects million (5) 1,000 500 Order book Organisation strong and revamped healthy 0 2Q19 3Q19 4Q19 1Q20 2Q20 11 Hal
Slide 12: Infrastructure projects: Revenue and profitability improved
AALTO-YLIOPISTO METRO STATION, HELSINKI, FINLAND Infrastructure projects Revenue and profitability improved ORDER BOOK, € million Adjusted Revenue grew 1,500 operating profit by €4 4% million (3) y-o-y 1,000 500 Order book State stimulus declined y-o-y packages in the Baltics agreed in and Norway Fi
Slide 13: Partnership properties: Segment's organisation strengthened
PIKKUSIRKKU, RIIHIMÄKI, FINLAND Partnership properties Segment’s organisation strengthened PORTFOLIO VALUE, € million Adjusted operating profit Organisation €1 strengthened million (0) Order book of Mall of Tripla fair value €286 0 unchanged million from real estate management 13 Half-year report Ja
Slide 14: Sale of Nordic paving and mineral aggregates businesses boosted cash flow
Sale of Nordic paving and mineral aggregates businesses boosted cash flow OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million -22 -30 -33 247 -10 -52 -2 -3 132 -81 -4 -51 -27 -48 -9 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Associated companies and joint vent
Slide 15: Strong liquidity position
Strong liquidity position NET INTEREST-BEARING DEBT, MATURITY STRUCTURE1, € million € million 983 204 939 942 862 159 715 118 0 10 0 2Q19 3Q19 4Q19 1Q20 2Q20 2020 2021 2022 2023 2024 2025- 1 Excluding housing company loans related to unsold apartments, € 207 million, commercial papers, € 200 million
Slide 16: Financial key ratios improved significantly
Financial key ratios improved significantly EQUITY RATIO AND GEARING, % NET DEBT / ADJUSTED EBITDA ratio 5 100% 4 80% 73% 3.5 3 60% 40% 2 33% 1 20% 0% 0 2Q19 3Q19 4Q19 1Q20 2Q20 4Q19 1Q20 2Q20 Gearing Equity ratio 16 Half-year report January-June 2020
Slide 17: Uncertainties caused by coronavirus pandemic continue in the market
Uncertainties caused by coronavirus pandemic continue in the market Business Infrastructure Partnership Housing premises projects properties Finland Russia Baltic countries Central European countries Sweden Norway Q2 market situation Market outlook, 12 months Good Normal Weak Improving Stable Weaken
Slide 18: Completions estimated to peak in Q4
Completions estimated to peak in Q4 ESTIMATED COMPLETIONS OF CONSUMER APARTMENT PROJECTS UNDER CONSTRUCTION, units In addition, revenue from 1,740 apartments under 1,500 900 construction recognised over time (POC): • 2,513 for investors • 5,420 in Russia 2,908 38 400 2,400 218 1,000 100 471 592 600
Slide 19: Guidance for Q3/20
Guidance for Q3/20 Consumer apartment Business premises completions at low segment to be Full year outlook level in Finland and CEE profitable clouded by uncertainty in consumer behavior In Russia, solid sales and and apartment operative performance completion timings at continue the end of the year
Slide 20: Our short-term priorities
Our short-term priorities Positive operating cash flow in 2020 Coronavirus pandemic: Construction sites Utilise YIT’s ongoing strong position 20 Half-year report January-June 2020 TRIPLA WORKERY EAST, HELSINKI, FINLAND
Slide 21: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Tommi Järvenpää Vice President, Investor Relations YIT’s Q3 interim +358 40 576 0288 report will be tommi.jarvenpaa@yit.fi published on Tiina Kuusisaari Investor Relations Manager Oct 30, +358 40 528 8154 tiina.kuusisaari@yit.fi
Slide 22: Appendices
HELSINKI-VANTAA AIRPORT, FINLAND 1 Appendices 22 Half-year report January-June 2020
Slide 23: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Share ownership IV. Debt structure V. Investment portfolio VI. Occupational safety VII. Coronavirus pandemic KEILALAMPI, ESPOO, FINLAND 23 Half-year report January-June 2020
Slide 24: I. Key figures
I. Key figures € million 4-6/20 4-6/19 1-6/20 1-6/19 1-12/19 Revenue 700 757 1,407 1,432 3,392 Operating profit 0 -23 -4 -35 80 Operating profit margin, % 0.0 -3.0 -0.3 -2.4 2.4 Adjusted operating profit 5 28 13 19 165 Adjusted operating profit margin, % 0.7 3.8 0.9 1.3 4.9 Result before taxes -8 -3
Slide 25: 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 993 939 1,274 1400 1200 546 1200 1000 1,091 897 845 1000 907 546 428 863 800 261 717 799 247 800 353 728 363 664 363 600 584 600 644 660 428 400 469 510 545
Slide 26: 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 900 600 Of projects earlier sold to YCE Housing I fund or a JV, and recorded as investor sales, YIT sold 63 800 apartments further to consumers (2Q19: 112) 500 442 700 665 98 590 400 374 600 357 98 98 500
Slide 27: 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 1100 1400 140% 928 1,281 900 862 1200 502 120% 750 722 725 1000 700 662 100% 906 320 807 800 80% 779 807 500 571 594 600 60% 320 483 582 153 300 400 483 54% 418 48% 40% 42% 42% 42% 44% 200 274 100 20%
Slide 28: III. Share ownership, June 30, 2020
III. Share ownership, June 30, 2020 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE- MAJOR SHAREHOLDERS REGISTERED AND NON-FINNISH OWNERSHIP % OF SHARE 46,704 SHAREHOLDERS SHARES 43,752 44,312 44,656 CAPITAL 43,619 43,178 43,215 41,944 24,650,000 11.68 40,016 1. Tercero Invest AB 36,547 36,064 2. Varma
Slide 29: IV. Debt structure, June 30, 2020
IV. Debt structure, June 30, 2020 INTEREST-BEARING DEBT PORTFOLIO, INTEREST RATE DISTRIBUTION OF € million INTEREST PORTFOLIO1 3% 22% 23% 48% 52% 17% 17% 18% Bonds Commercial papers Housing corporation loans related to unsold apartments Fixed rate Floating rate Loans from financial institutions 1 Ex
Slide 30: V. Investment portfolio and estimated timelines
Partnership properties V. Investment portfolio and estimated timelines COMPLETED AND ONGOING > €2 billion YIT’S OWNERSHIP YIT’S EQUITY FAIR VALUATION INVESTMENT STARTED Equity investments COMMITMENT Tripla Mall Ky 38.75% 117 M€ 4Q19 Associated companies and joint ventures Tieyhtiö Vaalimaa Oy (PPP p
Slide 31: VI. Occupational safety
VI. Occupational safety LOST TIME INJURY FREQUENCY (LTIF), ROLLING 12 MONTHS 12 LTIF, rolling 12 months 10 8 6 10.0 injuries of YIT’s own 4 employees and 2 subcontractors per million hours worked 0 2Q19 3Q19 4Q19 1Q20 2Q20 LTIF (per one million hours worked) LTIF target (<9) 31 Half-year report Janu
Slide 32: VII. Materialised impacts of coronavirus pandemic
VII. Materialised impacts of coronavirus pandemic RISKS IMPACTS ACTIONS The most significant Potential impacts Comprehensive anticipatory uncertainties actions taken • Availability of personnel • Temporary shutdowns or • Task force • Availability of materials slower progress on sites • Substitutive
Slide 33: Together we can do it.
Together we can do it.