Yit Oyj · OMXHEX:YIT
Yit Oyj — Investor Day (September 2019)
29 slides from Yit Oyj's investor day presentation, Sep 26, 2019
Slide 1: Sustainable Urban Development Driving Performance Through Cycles
SUSTAINABLE URBAN DEVELOPMENT DRIVING PERFORMANCE THROUGH CYCLES KARI KAUNISKANGAS, PRESIDENT AND CEO
Slide 2: Mission: We create better living environments
MISSION: MISSION: WE CREATE WE CREATE BETTER LIVING BETTER LIVING ENVIRONMENTS. ENVIRONMENTS 2 26.9.2019 Capital Markets Day 2019
Slide 3: Contents
Contents 1 Recap since CMD 2018 and merger 2 Market outlook 3 Updated strategy 4 Strategy execution 3 Capital Markets Day 2019 VIBU, TALLINN, ESTONIA
Slide 4: Recap since CMD 2018 and merger
1 Recap since CMD 2018 and merger TRIPLA, HELSINKI, FINLAND
Slide 5: Long-term track record
Long-term track record Revenue development (EUR million) and y-o-y revenue growth (%) 70% 60% 50% CAGR 3,194 40% +8% 30% 1,929 +7% 20% 1,841 1,800 1,793 1,918 1,632 1,631 1,573 1,716 1,660 10% 1,399 1,448 1,384 1,343 1,443 1,296 1,112 1,143 0% 743 828 -10% -20% 2000 2001 2002 2003 2004 2005 2006 200
Slide 6: Key highlights during last months
Key highlights during last 12 months IMPROVED CUSTOMER LTIF (OCCUPATIONAL GROWTH OF NON- EXPERIENCE SAFETY LEVEL) CYCLICAL BUSINESS 57 10.2 +46% NPS (Net Promoter Score) level at LTIF R12 level at the end of H1/19 revenue growth from non- the end of August (2018: 52). August (2018: 10.5). cyclical b
Slide 7: Strategic development programmes: results 2018-2019
Strategic development programmes: results 2018-2019 PROGRAMME TARGETS RESULTS • Annual cost synergies of EUR 48 million to be achieved Cost synergies • GRIP management system in use in all sites in Finland from Jan 1, 2019 PERFORMANCE Management system • Lead times: baselines and reporting defined;
Slide 8: Significant steps to reduce capital and enhance profitability
Russia Significant steps to reduce capital and enhance profitability EVROPEISKI RESIDENTIAL COMPLEX YEGORIEVSK, RUSSIA EVROPEISKI RESIDENTIAL COMPLEX, YEGORIEVSK, RUSSIA SCOPE OF THE ACTIONS FINANCIAL IMPACT FOCUS IN THE FUTURE, NOT INCLUDED IN THE ACTIONS Discontinue residential construction in Exp
Slide 9: YIT to sell Nordic paving and mineral aggregates businesses to Peab
Nordic paving and mineral aggregates YIT to sell Nordic paving and mineral aggregates businesses to Peab SCOPE OF THE TRANSACTION FINANCIAL IMPACT NOT INCLUDED IN THE TRANSACTION Paving and mineral aggregates Closing of the deal Jan 1, 2020 Paving in Russia businesses in Finland, Sweden, (est.). Str
Slide 10: Deal rationale
Nordic paving and mineral aggregates Deal rationale ACCELERATE STRATEGY • Capital allocation to urban development projects 1 EXECUTION and other non-cyclical businesses, like services SHARPEN CUSTOMER AND • Unified business portfolio with common core 2 OPERATIONAL FOCUS • Reduced operating model com
Slide 11: Key elements of YIT culture
KEY ELEMENTS OF YIT CULTURE VALUES RESPECT COOPERATION CREATIVITY PASSION • We care about our customers • We are open and share • We trust and build • We aim high with quality, and personnel knowledge a positive spirit expertise and results • We look for environmentally • We involve and partner • We
Slide 12: Market outlook
2 Market outlook ESPOO MATINKYLÄ METRO STATION TAPIOLA METRO STATION, ESPOO, FINLAND ESPOO, FINLAND
Slide 13: Market outlook: development of macro environment
Market outlook Development of macro environment GDP growth forecasts 2019-2021 FINLAND RUSSIA 2019: 1.6% 2019: 1.6% Strong consumer confidence, but housing market New housing legislation (law 214) has increased 2020: 1.6% 2020: 1.4% has peaked. Uncertainty in private investor 2021: 1.8% 2021: 1.4% u
Slide 14: Updated strategy
3 Updated strategy “HELSINGIN KLYYGA” APARTMENT BUILDING PROJECT TRIPLA-PROJEC, HELSINKI, FINLAND
Slide 15: YIT Strategy 2020-2022 - Performance through cycles
YIT Strategy 2020-2022 - Performance through cycles Improving profitability and maintaining financial stability STRATEGIC PRIORITIESSTRATEGIC PRIORITIES CORNERSTONESOF CORNERSTONES OF SUCCESS SUCCESS PRIORITY IN SHORT TERM URBAN DEVELOPMENT TOP PERFORMANCE Self-developed and longer value • Site prod
Slide 16: Sustainable urban development as core of YIT's business model
Sustainable urban development as core of YIT’s business model Source of volume, growth and profitability for all businesses A B LIFE CYCLE SERVICES 4. 1. DEVELOPED PROJECT FLOW Result from lifecycle services and SERVICES > 600 000 sq.m of new buildings rights management of developed projects as X Su
Slide 17: Strategic financial targets intact
Strategic financial targets intact Financial target Long-term target level ROCE >12% Gearing 30-50%1 Dividend per share Growing annually2 1 Including the impact of IFRS 16 by the end of the strategy period. 2 The Board of Directors has decided to propose to the AGM a change in dividend payment to be
Slide 18: Strategy execution
4 Strategy execution NAANTALI CHP PILIAMIESTIS, KAUNAS, LITHUANIA NAANTALI, FINLAND
Slide 19: Profitability improvement – Priority in short term
Strategy execution Profitability improvement – Priority in short term ADJUST BUSINESS HEALTHY SALES IMPROVE GRIP ON PROJECT 1 MIX 2 PRICES 3 PRODUCTIVITY 4 MANAGEMENT • Focus on urban development • Dynamic pricing • Lean principles in use • Tender process with risk • Careful project selection; • Val
Slide 20: Strategy execution – Partnership properties
Strategy execution – Partnership properties Attractive earnings opportunities from project flow also for partners ANNUAL TARGETS IN PARTNERSHIP PROPERTIES ~EUR 50 M OWN EQUITY ROCE > 15% INVESTMENTS REAL ESTATE INVESTMENT PROJECT FLOW ASSET PRODUCTS MANAGEMENT 20 26.9.2019 Capital Markets Day 2019
Slide 21: Strategy execution – Services development
Strategy execution – Services development Services take lifecycle responsibility of the developed properties SERVICES TARGET BY THE END OF THE STRATEGY PERIOD EBIT > 7% SUPERIOR CUSTOMER INTERFACE AND MARKETPLACE PROPERTY DATA THROUGH-OUT THE LIFE CYCLE PARTNERS’ PROPERTY YIT’S RENTING SERVICE MANAG
Slide 22: New strategic development programme launched
Strategy execution New strategic development programme launched GREEN GROWTH 2019-2021 Value from sustainability Reduce CO2 emissions 50% by 2030 SERVICES DEVELOPMENT 2020- Enable carbon neutral lifestyle Growth in services Local energy services business 24/7 service platform CUSTOMER FOCUS 2019-202
Slide 23: Happy people – our most valuable asset
Strategy execution Happy people – our most valuable asset PEOPLE WORK SAFETY, VALUES & CULTURE RESOURCES COMMITMENT DEVELOPMENT HEALTH & WELL-BEING • Open and involving • Rotation to support • Building selected • Transparent • Respect for life - leadership growth, renewal and key competences to remu
Slide 24: Housing Finland and CEE and Housing Russia
Key implications and targets Housing Finland and CEE and Housing Russia HOUSING FINLAND AND CEE HOUSING RUSSIA • Wide portfolio of homes for sale and renting for several client segments • Focus on plot acquisitions and project development in remaining units • Service-minded culture, steps towards se
Slide 25: Business premises and Infrastructure projects
Key implications and targets Business premises and Infrastructure projects BUSINESS PREMISES INFRASTRUCTURE PROJECTS • Profitable pipeline of self-developed projects • Improve profitability • Active and systematic customer work to get tenants, • Adjust project mix by focused project selection and sa
Slide 26: Business development by segment
Business development by segment 2018 2019 2020 Housing Finland and CEE Housing Russia Infrastructure projects Business premises Partnership properties - Development estimates are based on 1) current market environment, 2) current backlog of orders, 3) executed restructuring, reorganising and perform
Slide 27: More life in sustainable cities
More life in sustainable cities STRATEGY 2020–2022: PERFORMANCE THROUGH CYCLES – Improving profitability and maintaining financial stability of YIT – Urban Top Happy Customer development performance people focus Services Urbanisation Digitalisation Success Perfor- Green Partnership Services Stepping
Slide 28: Vision: More life in sustainable cities
VISION: MORE LIFE IN SUSTAINABLE CITIES 28 26.9.2019 Capital Markets Day 2019
Slide 29: Together we can do it.
Together we can do it.