YIT Oyj · OMXHEX:YIT
YIT Oyj — Non-Deal Roadshow (March 2021)
36 slides from YIT Oyj's roadshow presentation, March 2021
Slide 1: Roadshow presentation
TRIPLA, HELSINKI, FINLAND Roadshow presentation March 2021
Slide 2: More life in sustainable cities
15 More life in MINUTES’ sustainable cities CITY 2 Roadshow presentation March 2021
Slide 3: Table of contents
TRIPLA, HELSINKI, FINLAND Table of contents 1. Strategy 2. 2020 results 3. Outlook and guidance 3 Roadshow presentation March 2021
Slide 4: 1. Strategy
KONEPAJA AREA, HELSINKI, FINLAND 1. Strategy Strategy excecution towards sustainable urban development continues 4 Roadshow presentation March 2021
Slide 5: Megatrends driving growth and productivity
Megatrends driving growth and productivity URBANISATION DIGITALISATION SUSTAINABILITY CHANGING DEMOGRAPHY • Urban development • Customer experience • Circular economy • Lack of people • Public transportation • Higher productivity • Carbon neutrality • Competition for talent • Complex projects • Util
Slide 6: More life in sustainable cities
More life in sustainable cities A Improve offering and Strengthen pipeline for lifetime value of assets B growth • Differentiating services in SERVICES • Plot reserve in urban areas co-operation with partners X Sustainable • Partnerships and financing • Competitive core products urban • Project deve
Slide 7: Examples of urban development project portfolio
Examples of urban development project portfolio ONGOING PROJECTS FUTURE PROJECTS KEILANIEMENRANTA GARDEN HELSINKI MARIA 01 TRIGONI HIGH RISE ESPOO, FINLAND HELSINKI, FINLAND HELSINKI, FINLAND HELSINKI, FINLAND ~800 M€ ~600 M€ ~300 M€ ~500 + 500 M€ 2018-2023 -2026 -2023 -2027 JOKERI LIGHT RAIL TAMPER
Slide 8: We are growing on our focus areas
We are growing on our focus areas TOTAL PLOT RESERVE, ORDER BOOK OF LIFE-CYCLE PROJECTS, € million € million 853 624 812 ~580 ~390 ~230 1 2018 2019 2020 2018 2019 2020 1 Excluding leased plots 8 Roadshow presentation March 2021
Slide 9: Group-wide cornerstones drive profitability and performance
Group-wide cornerstones drive profitability and performance Success with Top performance customers and partners Stepping up Happy people sustainability 9 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND
Slide 10: Customer satisfaction rate (NPS) developed favourably
Customer satisfaction rate (NPS) developed favourably NET PROMOTER SCORE HOUSING FINLAND & CEE 51 50 62 (51) HOUSING RUSSIA 60 (57) 2019 2020 10 Roadshow presentation March 2021
Slide 11: Strategic targets
Strategic targets ROCE Gearing >12% <50% CO2 emissions Dividend per share Growing -50% by 2030 vs. 2019 11 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND
Slide 12: Dividend history
Dividend history DIVIDEND PAYOUT RATIO AND DIVIDEND PER SHARE, € EFFECTIVE DIVIDEND YIELD, % 0.09 572% 6.7% 0.07 0.12 5.3% 4.2% 4.2% 3.9% 0.05 3.7% 145% 68% 41% 59% 2.9% 56% 0.03 0.38 0.28 0.01 0.25 0.27 0.22 0.22 0.18 1 -0.01 0.14 -5.00 -389% -0.03 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014
Slide 13: Long-term environmental targets to mitigate climate change
PILIAMIESTIS, KAUNAS, LITHUANIA Long-term environmental targets to mitigate climate change CO2 emissions CO2 reporting We will halve carbon We report the project- dioxide emissions of our -50% specific CO2 emissions own operations (incl. of our self-developed energy, waste and Projects starting from
Slide 14: Occupational safety essential throughout the supply chain
Occupational safety essential throughout the supply chain LTIF, ROLLING 12 MONTHS Target of <9 16 12 combined lost time injury 8 Target level frequency (LTIF) of YIT personnel and 4 subcontractors by 2021 0 Rolling 12 months YIT personnel YIT personnel and subcontractors 14 Roadshow presentation Mar
Slide 15: Ensuring employee wellbeing, equality and human rights
KONEPAJA, HELSINKI, FINLAND Ensuring employee wellbeing, equality and human rights Personnel Employee commitment rate in 2020 Women 24% 80% (77) ~7,400 Men 76% #1 The ideal construction industry Employed over employer among students and university educated professionals in 800 trainees in 2020 the f
Slide 16: Ensuring transparent actions and fighting corruption and grey economy
WORKERY WEST, HELSINKI, FINLAND Ensuring transparent actions and fighting corruption and grey economy Good ESG governance: AA-rating YIT Code of Conduct (MSCI 2019) ~80% of personnel completed online training in 2020 YIT Ethical Channel in use 16 Roadshow presentation March 2021
Slide 17: 2. 2020 results
HELSINKI-VANTAA AIRPORT, FINLAND 2. 2020 results Balance sheet continued to strengthen in 2020 17 Roadshow presentation March 2021
Slide 18: 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 18 Roadshow presentation March 2021 NAUJASIS SKANSENAS, VILNIUS, LITHUANIA
Slide 19: Group development
Group development REVENUE, € million ORDER BOOK, € million 4,286 4,131 3,392 3,528 3,201 3,069 2018 2019 2020 2018 2019 2020 19 Roadshow presentation March 2021
Slide 20: 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 20 Roadshow presentation
Slide 21: Continued plot investments for the future
Continued plot investments for the future OPERATING CASH FLOW AFTER INVESTMENTS, CASH FLOW OF INVESTMENTS, rolling 12 months, € million rolling 12 months, € million Total plot reserve 336 ~840 M€ at the end n/a of 2020 -153 -155 -34 -34 51 -187 -189 n/a 2018 2019 2020 2018 2019 2020 Plots totalcompa
Slide 22: Net debt decreasing
Net debt decreasing NET INTEREST-BEARING DEBT, € million EQUITY RATIO AND GEARING, % 862 81% 628 68% 563 54% 38% 34% 33% 1 2 2018 2019 2020 2018 2019 2020 Gearing Equity ratio 1 Excluding IFRS 16 lease liabilities, € 301 million. 2 Excluding IFRS 16. 22 Roadshow presentation March 2021
Slide 23: 3. Outlook & guidance
HELSINKI-VANTAA AIRPORT, FINLAND 3. Outlook & guidance Performance expected to improve in 2021 23 Roadshow presentation March 2021
Slide 24: Market outlook is relatively stable with limited visibility
Market outlook is 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 24 Roadshow presen
Slide 25: 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 26: 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 27: 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 27 Roadshow presentation
Slide 28: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Tommi Järvenpää YIT’s Vice President, Investor Relations Q1 interim report +358 40 576 0288 tommi.jarvenpaa@yit.fi will be published on Hanna Valonen Investor Relations Specialist 30 Apr +358 400 846 556 Follow YIT IR hanna.valon
Slide 29: 4. Appendices
YIT’s HEADQUARTERS, HELSINKI, FINLAND 4. Appendices I. Profitability 2018-2020 II. Debt structure III. Strategic targets IV. Market position 29 Roadshow presentation March 2021
Slide 30: I. Profitability weakened in 2020
I. Profitability weakened in 2020 ADJUSTED OPERATING PROFIT, € million AND PROFIT MARGIN, % 180 10.0% 166 160 9.0% 140 132 8.0% 7.0% 120 6.0% 100 4.9% 85 5.0% 80 4.1% 4.0% 60 2.8% 3.0% 40 2.0% 20 1.0% 0 0.0% 2018 2019 2020 30 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND
Slide 31: II. Debt structure stable
II. Debt structure stable 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 Lease liabil
Slide 32: III. Gearing improved, ROCE weakened
Strategic targets III. Gearing improved, ROCE weakened ROCE, % GEARING, % 81 >12 68 10 54 <50 6 5 1 // 2 // 2018 2019 2020 Target 2018 2019 2020 Target 1 Pro forma, excluding IFRS 16 2 Excluding IFRS16 32 Roadshow presentation March 2021
Slide 33: III. Dividend proposal 0.14 € per share
Strategic targets III. 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. 33 Ro
Slide 34: IV. YIT has strong market position in urban development
IV. YIT has strong market position in urban development SHARE OF TOTAL REVENUE IN 2020 BUILDING CONSTRUCTION CIVIL ENGINEERING ~14% Housing Business premises Infrastructure projects ~22% ~2% ~1% ~4% ~7% ~1% ~2% ~12% ~4% Source: Eurostat, company own estimate. ~1% Turnover data for building and civil
Slide 35: 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 36: Together we can do it.
Together we can do it.