Slide 1: Q3/2024 Interim Report January – September 2024
Q3/2024 Interim Report January – September 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: Profitability improved in all segments in Q3, cash flow positive
Profitability improved in all segments in Q3, cash flow positive Profitability improved in all Three out of four Ongoing businesses actions to Cash A total of flow improvements 550 YIT homes were segments in the third quarter, operate under normal sold improve market capital conditions with active o
Slide 4: Revenue decreased and profitability increased in Q3
Revenue decreased and profitability increased in Q3 Revenue Adjusted operating profit EUR million EUR million 30 26 6% 597 20 17 4% 553 13 434 453 10 7 2% 412 0 0% -10 -2% -20 -14 -4% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Adj. OPM (%), rolling 12 months 4
Slide 5: All businesses contributed to a solid quarter
All businesses contributed to a solid quarter YIT Group, EUR million • Housing market in Finland remained weak impacting revenue Adj. operating profit Revenue Adj. OP, % • Sound performance in Housing operations in Baltic and CEE countries 26 (17) 453 (553) 5.6 (3.0) • • Profitability increased sign
Slide 6: Housing Finland: The number of unsold completed apartments continued to decrease
Housing Finland: The number of unsold completed apartments continued to decrease Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million Target >10% Improved apartment sales decreased Order book decreased due to market Adj. operating profit supported by the
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 • Market recovery is expected to begin in 2025, with the emphasis on the latter half of Sold completions the year Year 2024 Unsold completion 1,437 total: 4,285 • Reduce
Slide 8: The stock of unsold completed apartments is located primarily in the capital region
The stock of unsold completed apartments is located primarily in the capital region – 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 538 • Total of 771 unsold co
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 adj. operating profit, EUR million Target >10% Stock corresponds to seven weeks’ Order book has remained solid, decline Rolling 12 months adjusted operating sales, capital t
Slide 10: Apartment starts are concentrated in the Baltic and CEE countries
Apartment starts are concentrated in the Baltic and CEE countries Consumer apartments starts, housing units • Consumer apartment starts amounted to 57 (108) apartments • All the starts in Q3/24 were in the Baltic and CEE countries • The plot reserve in Finland offers the capability to start new proj
Slide 11: Our production has reached the bottom of the cycle
Our production has reached the bottom of the cycle Total number of apartments under construction for consumers and investors, housing units • Total number of 10,000 100% apartments under construction 9,000 90% was 2,618 (4,553), majority of 8,000 80% 7,000 70% which located in the Baltic and 6,000 6
Slide 12: Consumer apartment completions are located primarily in the Baltic and CEE countries
Consumer apartment completions are located primarily in the Baltic and CEE countries Consumer apartment completions, housing units 2,965 872 2,602 863 730 568 1,266 268 540 507 1,470 432 391 376 2,102 950 458 388 107 196 1,336 432 462 315 332 140 520 284 110 56 61 119 2022 2023 2024 Q1/23 Q2/23 Q3/2
Slide 13: Consumer apartment sales increased in the Baltic and CEE countries
Consumer apartment sales increased in the Baltic and CEE countries Consumer apartments sold, housing units • Consumer sales in Finland decreased by -18% during the third quarter, but increased +7% y-on-y • In the Baltic and CEE countries, consumer sales improved by +27% from the previous quarter and
Slide 14: Consumer apartments sold by associated companies and joint ventures increased
Consumer apartments sold by associated companies and joint ventures increased 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 109 (end of Q2/2
Slide 15: Infrastructure: Steady profitability with negative capital employed
Infrastructure: Steady profitability with negative capital employed Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million Target >4% Segment has reached the target to The order for the first phase of the Rolling 12 months adjusted operating operate with n
Slide 16: Business Premises: Solid performance in Q3
Business Premises: Solid performance in Q3 Capital employed, EUR million Order book, EUR million Quarterly adj. operating profit, EUR million Target >4% Capital employed includes Tripla Mall, Strong order book corresponding to Operative performance improving, while two self-developed offices, plots
Slide 17: Market environment remained stable; housing market in Finland not expected to materially 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 Q3 market environment Short-term market outlook during 2024 Good Normal Weak Improving Stable Weake
Slide 18: Key figures on the right track
Key figures on the right track Adjusted operating profit Operating cash flow at after investments was EUR 26 million EUR 2 million (Q3/23: 17) (Q3/23: -2) Capital employed Net debt at amounted to EUR 789 million EUR 1,542 million (Q3/23: 869) (Q3/23: 1,681) (Q2/24: 788) 18
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 the successful capital release measures • Capital employed in Housing remained stable • Capital employed negative in Infrastructure supported by successful capital releas
Slide 20: Operating cash flow after investments positive in Q3
Operating cash flow after investments positive in Q3 Operating cash flow after investments, • Operating cash flow after investments was EUR million EUR 2 million (-2) in Q3. • 12 months rolling operative cash flow after investments was EUR 63 million at the end of the quarter. • Cash and cash equiva
Slide 21: Key assets over 2x net debt
Key assets over 2x net debt Distribution of key assets in balance sheet, Distribution of interest-bearing debt, EUR million EUR million Tripla valued at EUR 182m Investments 271 1,777 Completed 398 Finland: 771 apartments Baltic & CEE: Interest-bearing receivables 277 apartments 45 Other interest-be
Slide 22: The work continues to decrease our indebtedness
The work continues to decrease our indebtedness Equity ratio Gearing 32% 33% 33% 33% 34% 105% 97% 98% 94% 89% Target <50% Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Net interest-bearing debt, Maturity structure of interest-bearing debt, EUR million EUR million* 313 869 795 768 788 7
Slide 23: Strong profitability in Q3 reflects the results of the transformation program
Strong profitability in Q3 reflects the results of the transformation program • Annualized inflation-adjusted run-rate cost savings target of EUR 40 Cumulative annualized cost savings secured million for the program was achieved ahead of schedule by the end of from the transformation program, EUR mi
Slide 24: 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. • The housing market recovery in Central Eastern Europe is adjusted operating
Slide 25: A solid quarter on all fronts
A solid quarter on all fronts We are well on track to achieve Our financial position allows us The results of the transformation the expected results in 2024, time to address the capital program are reflected in our driven by profitability release and focus on improved profitability – we improvement
Slide 26: The key to our success is our skilled and versatile employees
The key to our success is our skilled and versatile employees We continued to develop YIT's Our employee survey was executed procurement towards a category- during October with 80% of our based model as part of the employees taking part. transformation program. The employee net promoter score During
Slide 27: YIT Capital Markets Day
YIT Capital Markets Day Our Capital Markets Day will be held on Wednesday, 13 November at 1:00 p.m. EET at Aleksanterinkatu 13. The event will be webcasted live. 27
Slide 28: Additional information
Additional information YIT Investor Relations investorrelations@yit.fi Essi Nikitin Arttu Hakala-Ranta VP, Investor Relations Investor Relations Manager +358 50 581 1455 +358 40 076 1775 essi.nikitin@yit.fi arttu.hakala-ranta@yit.fi YIT’s Capital Markets Day will be held on Wednesday, 13 November 20
Slide 29: Appendices
Appendices I. Key figures II. Housing sales and starts 29
Slide 30: I. Key figures
I. Key figures EUR million 7–9/24 7–9/23 1–9/24 1–9/23 1–12/23 Revenue 453 553 1,299 1,566 2,163 Operating profit 13 14 -37 18 51 Operating profit, % 2.9 2.6 -2.9 1.2 2.4 Adjusted operating profit 26 17 18 28 41 Adjusted operating profit margin, % 5.6 3.0 1.4 1.8 1.9 Result before taxes -6 1 -86 -18
Slide 31: II. Sales and starts: Housing Finland
The Housing segment in Finland II. Sales and starts *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 32: II. Sales and starts: Housing Baltic and CEE
The Housing segment in the Baltic and Central Eastern Europe II. Sales and starts * 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 33: Together we can do it.
Together we can do it.