Slide 1: Q2/2024 Half-Year Report January – June 2024
Q2/2024 Half-Year Report January – June 2024 Heikki Vuorenmaa, President and CEO Tuomas Mäkipeska, 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: Transformation program savings target achieved ahead of schedule
Transformation program savings target achieved ahead of schedule, contracting segments main profit drivers in Q2 Transformation program cost Adjusted Ongoing operating actionsprofit to Cash flow Consumer improvements apartment sales savings target of EUR 40 million supported by Infrastructure, incre
Slide 4: Revenue and adjusted operating profit decreased in Q2
Revenue and adjusted operating profit decreased in Q2 Revenue Adjusted operating Adjusted operating Operating profit, EUR million profit EUR million profit margin, % EUR million 11 558 434 14 2,6 7 1,6 -42 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Operating profit adjusting ite
Slide 5: Contracting segments main profit drivers in Q2
Contracting segments main profit drivers in Q2 YIT Group, EUR million • Housing market in Finland remained weak impacting both net sales and profitability. The comparison period Adj. operating profit Net sales Adj. OP, % included sale of 190 apartments in Finland to YIT’s joint venture and sale and
Slide 6: Housing Finland: The number of unsold completed apartments decreased
Housing Finland: The number of unsold completed apartments decreased Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million 705 910 Target 691 689 695 >10% 779 720 681 648 1 000 590 644 890 867 620 562 528 743 465 623 266 159 158 154 125 Q2/23 Q3/23 Q4/23
Slide 7: Finnish housing market completions outlook Q1 2024 – Q4 2025
Finnish housing market completions outlook Q1 2024 – Q4 2025 Self-developed housing unit completions in the Finnish housing market • Supply of new apartments in the Finnish market will significantly decline during 2024, Sold completions and, especially during 2025. 1,335 Year 2024 Unsold completion
Slide 8: Unsold completed apartments stock corresponds to demand profile
The stock of unsold completed apartments corresponds to the demand profile – at the current pace of sales, the stock will last until the end of Q3/25 Unsold completed apartments in Finland Size distribution of the unsold completed by region apartments in Finland 564 • Total of 867 unsold completed a
Slide 9: Housing Baltic and CEE countries: Stable performance continued
Housing Baltic and CEE countries: Stable performance continued Capital employed, EUR million Order book, EUR million Quarterly adjusted operating profit, EUR million 408 400 466 425 436 421 377 364 362 385 377 359 251 345 214 240 225 223 Target 205 >10% 215 211 197 196 162 107 Q2/23 Q3/23 Q4/23 Q1/2
Slide 10: Apartment start-ups are concentrated in the Baltic and CEE countries
Apartment start-ups are concentrated in the Baltic and CEE countries Consumer apartments start-ups, housing units • Consumer apartment start-ups were 186 (522) apartments in the 1 062 second quarter of 2024 • All the start-ups in Q2/24 were in 516 the Baltic and CEE countries 522 • The plot reserve
Slide 11: Production in Finland adapted to meet the market conditions
Production in Finland adapted to meet the market conditions Total number of apartments under construction for consumers and investors, housing units • Total number of 10 000 100% 9 000 90% apartments under construction 8 000 80% was 2,956 (6,049), majority of 7 000 70% which located in the Baltic an
Slide 12: Approximately 80% of consumer apartment completions in H2/24 in Baltic and CEE
Approximately 80% of the consumer apartment completions in H2/24 will take place in the Baltic and CEE countries Estimated completions of consumer apartments under construction Housing units 2 965 872 2 602 730 750 863 1 741 568 1 266 268 540 432 400 391 550 2 102 1 157 458 107 196 1 336 432 462 350
Slide 13: Consumer apartment sales increased for the fifth consecutive quarter in Finland
Consumer apartment sales increased for the fifth consecutive quarter in Finland Consumer apartments sold, housing units • Consumer sales in Finland 690 increased by +14% during the second quarter, 47% increase 270 520 y-on-y. 353 338 342 372 352 • In the Baltic and CEE countries 285 322 234 288 cons
Slide 14: Consumer apartment sales by associated companies and joint ventures increasing
Consumer apartments sales by associated companies and joint ventures increasing Consumer apartments sold by Estimated completions of apartments under construction in associated associated companies and joint companies and joint ventures, housing units ventures*, housing units Total of 204 unsold com
Slide 15: Infrastructure: Significantly improved profitability with negative capital employed
Infrastructure: Significantly improved profitability with negative capital employed Capital employed, EUR million Order book, EUR million Quarterly adjusted operating profit, EUR million 42 44 803 808 805 36 773 722 5 Target >4% -32 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Segment
Slide 16: Business Premises: Performance according to plan in Q2
Business Premises: Performance according to plan in Q2 Quarterly adjusted operating profit, Capital employed, EUR million Order book, EUR million EUR million 319 1 391 1 384 281 1 244 1 251 Target 247 258 257 >4% 1 165 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Capital employed incl
Slide 17: Market environment remained stable; housing market in Finland not expected to improve
Market environment Housing Real estate Infrastructure remained stable; market market market Finland housing market in Baltic countries Finland not expected Central Eastern Europe to materially improve Q2 market environment Short-term market outlook during 2024 Good Normal Weak Improving Stable Weake
Slide 18: Maturity of the interest-bearing debt has been extended significantly
Maturity of the interest-bearing debt has been extended significantly Adjusted operating profit Operating cash flow at after investments was EUR 7 million EUR -6 million (Q2/23: 14) (Q2/23: 14) Capital employed Net debt at amounted to EUR 788 million EUR 1,546 million (Q2/23: 865) (Q2/23: 1,683) (Q1
Slide 19: Capital employed on a downward trend
Capital employed on a downward trend YIT Group, EUR million • Capital employed on a downward trend on a group level, supported by 1 683 1 681 the successful capital release measures 1 618 1 591 • Capital employed in Housing Finland decreased from the end of March 1 546 • Capital employed negative in
Slide 20: Operating cash flow after investments included EUR -39 million from housing plots
Operating cash flow after investments included cash flow of EUR -39 million from investments related to housing plots Operating cash flow after investments, EUR million • Operating cash flow after investments was EUR -6 million, which included a total of EUR -39 million of investments related to hou
Slide 21: Key assets nearly 2x gross debt
Key assets nearly 2x gross debt Distribution of key assets in balance sheet, Distribution of interest-bearing debt, EUR million EUR million Tripla valued at EUR 183m Investments 1 841 279 Gross debt reduced by over EUR 130 million from the end of March 2024. Completed 417 impacted mainlyFinland: by
Slide 22: YIT has completed a comprehensive multi-step financing process
YIT has completed a comprehensive multi-step financing process and reached a stable position with long maturities in its financing 21 November 2023 12 March 2024 2 April 2024 11 June 2024 ”YIT has executed a substantial financing arrangement including ”YIT signs a EUR 140 million term equity and enh
Slide 23: Maturity structure of the interest-bearing debt has been significantly extended
Maturity structure of the interest-bearing debt has been significantly extended Equity ratio Gearing 33% 32% 32% 33% 33% 33% 104% 105% 94% 89% 97% Target <50% Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Net interest-bearing debt, Maturity structure of interest-bearing debt, EUR
Slide 24: Transformation program savings target achieved ahead of schedule
Transformation program savings target achieved ahead of schedule • YIT’s transformation program has progressed faster than originally expected, and Cumulative annualised cost savings secured the annualised inflation-adjusted run-rate cost savings target of EUR 40 million for from the transformation
Slide 25: Group adjusted operating profit is expected to be EUR 20–60 million in 2024
Tahvonlahti School, Helsinki, Finland • YIT expects its Group adjusted operating profit for continuing operations to be EUR 20–60 million in 2024. The operating cash Group flow after investments is expected to be positive. adjusted operating • The housing market recovery in Central Eastern Europe is
Slide 26: Releasing capital and lowering our indebtedness are high on our agenda
Releasing capital and lowering our indebtedness are high on our agenda A multi-stage financing We will continue to take the The targeted savings for the renewal was executed in a required measures to further transformation program were planned manner during the release capital from our achieved well
Slide 27: Our strength lies in our people and their competences
Our strength lies in our people and their competences Engineering students ranked YIT as YIT has continued the the most attractive construction systematic work to strengthen industry employer for the 6th safety management within the consecutive time (Universum). company and with its partners. This y
Slide 28: We continue to improve operative performance in all segments
We continue to improve operative performance in all segments We continue our boost our sales Infrastructure continues to further Operative performance in both in Finland and Baltic and CEE improve operative efficiencies and Business Premises continues to countries. Consumer start-ups in tender for s
Slide 29: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Essi Nikitin VP, Investor Relations +358 50 581 1455 essi.nikitin@yit.fi YIT’s Interim Report Q3/2024 Follow YIT IR will be published on Thursday, on X: 31 October x.com/ 2024 YITInvestors 29
Slide 30: Appendices
Appendices I. Key figures II. Housing sales and start-ups 30
Slide 31: I. Key figures
I. Key figures EUR million 4–6/24 4–6/23 1–6/24 1–6/23 1–12/23 Revenue 434 558 846 1,013 2,163 Operating profit -42 11 -51 4 51 Operating profit, % -9.8 2.0 -6.0 0.4 2.4 Adjusted operating profit 7 14 -7 11 41 Adjusted operating profit margin, % 1.6 2.6 -0.9 1.1 1.9 Result before taxes -57 -1 -79 -1
Slide 32: II. Sales and start-ups: Housing Finland
The Housing segment in Finland II. Sales and start-ups *Q1/2023 “To investors” figure includes 144 units initially started for consumers from a bundle deal. *Q2/2023 “To investors” figure includes 190 units initially started for consumers from a bundle deal.
Slide 33: II. Sales and start-ups: Housing Baltic and CEE
The Housing segment in the Baltic and Central Eastern Europe II. Sales and start-ups * 135 units initially started for consumers in Q3/2022, were later sold to investors. The figures have been adjusted so that the units sold to investors appear under "Started for investors".
Slide 34: Together we can do it.
Together we can do it.