Yit Oyj · OMXHEX:YIT
Yit Oyj — Non-Deal Roadshow (May 2020)
46 slides from Yit Oyj's roadshow presentation, May 2020
Slide 1: Roadshow presentation May-June 2020
HELSINKI-VANTAA AIRPORT, FINLAND Roadshow presentation May-June 2020
Slide 2: YIT in a nutshell
1 YIT in a nutshell 2 Roadshow presentation May-June 2020 MALL OF TRIPLA, HELSINKI, FINLAND
Slide 3: Largest Finnish and a significant North European construction and development company
We are the largest Finnish and a significant North European construction and Revenue development company Finland 3.4 Revenue ~2,500 EUR billion in 2019 Personnel ~4,300 Scandinavia Sweden Adjusted operating profit Revenue ~150 166 Personnel ~200 Finland Norway Russia Russia Revenue ~300 Estonia Pers
Slide 4: Our customer offering
Our customer offering Business Infrastructure Partnership Housing premises projects properties Functional homes, Diverse office, Smooth traffic Profitable living services business, production and flows and sustainable solutions for investors and convenience logistics premises, hybrid living environm
Slide 5: 2019 in figures
2019 in figures 100 Good Deeds – more than 200 good deeds have already been done in our Top performance Happy people responsibility programme. Read more: yitgroup.com/ Profitability Dividend Commitment index Employer image 100hyvaatekoa +25% 0.28 € 77% 1st (in Finnish) improved adjusted per share pe
Slide 6: Reasons to invest – good outlook for 2020-2022
Reasons to invest – good outlook for 2020-2022 Potential for improving • Turnaround in Infrastructure projects and Housing Russia 1 profitability through internal actions segments done; further improvement potential remains • Business premises to return back on track by end of 2020 • Order book > €3
Slide 7: YIT's strategy 2020-2022
2 YIT’s strategy 2020-2022 7 Roadshow presentation May-June 2020 PURJEENTEKIJÄNKUJA, HELSINKI, FINLAND
Slide 8: Sustainable urban development is in the core of our business
Sustainable urban development is in the core of our business MISSION Creating VISION better living More life in STRATEGY environments sustainable cities Improve profitability and BUSINESS MODEL maintain financial stability via • Urban development • Services businesses • Partnership properties VALUES
Slide 9: 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€ (rolling SERVICES PROJECT FLOW 12mth) X Sustainable PLOT RESERVE 4.3 Mm2 urban development LONG-TERM PROJECT EARNINGS EXECUTION PORTFOLIO VALUE 239 M€ ORDER BOOK 3.8 B€ 9 Roadshow presentation
Slide 10: Strategic financial targets
Strategic financial targets Financial target Long-term target level ROCE >12% Gearing 30-50%1 Dividend per share Growing annually 1 Including the impact of IFRS 16 by the end of the strategy period. 10 Roadshow presentation May-June 2020
Slide 11: Our sustainability targets
PILIAMIESTIS, KAUNAS, LITHUANIA READ MORE: Our sustainability targets yitgroup.com/ sustainability management CO2 emissions CO2 reporting -50% We will halve carbon dioxide emissions of our energy consumption and self-developed projects by 2030 (compared to 2019). We will report project- specific CO2
Slide 12: Group development in 1Q20
3 Group development in 1Q20 12 Roadshow presentation May-June 2020 PILIAMIESTIS, KAUNAS, LITHUANIA
Slide 13: Q1: Operationally solid quarter
Q1: Operationally solid quarter Strong apartment sales Business premises to consumers burdened by costs related to progress in +14% financial settlements y-o-y Coronavirus pandemic: Balance sheet to Anticipatory and strengthen further protective in Q2 measures taken 13 Roadshow presentation May-June
Slide 14: Sale of Nordic paving and mineral aggregates businesses completed
Sale of Nordic paving and mineral aggregates businesses completed Cash flow impact Capital gain approx. approx. +€285 +€40 million million Impact in gearing Impact in equity ratio approx. approx. -34 +2 percentage points percentage points 14 Roadshow presentation May-June 2020
Slide 15: Coronavirus pandemic causes uncertainties
Coronavirus pandemic causes uncertainties 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 resource
Slide 16: Corporate responsibility important during the pandemic
Corporate responsibility important during the pandemic Social responsibility Taking care of for people customers • Safe working environment, • Safe online platforms for LTIF 10.2 (8.5) housing sales and rental • Over 500 summer trainees • Keeping to the schedules Ensuring continuity of business oper
Slide 17: Group revenue increased 5% year-on-year
Group revenue increased 5% year-on-year REVENUE, € million ORDER BOOK, € million 1,152 4,764 4,652 4,302 4,131 3,848 808 757 675 708 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 17 Roadshow presentation May-June 2020
Slide 18: Adjusted operating profit improved year-on-year
Adjusted operating profit improved year-on-year ADJUSTED OPERATING PROFIT, € million 121 Q1 adjusted operating profit 29 26 margin 1.2% 8 -10 (-1.4) 1Q19 2Q19 3Q19 4Q19 1Q20 18 Roadshow presentation May-June 2020 TRIPLA, HELSINKI, FINLAND
Slide 19: Adjusted operating profit per segment
Adjusted operating profit per segment € million 1Q19 1Q20 14 9 8 6 5 -3 -2 -5 -6 -12 Housing FIN Housing Business Infrastructure Partnership & CEE RUS premises projects properties 19 Roadshow presentation May-June 2020 MYLLYPURO CAMPUS, HELSINKI, FINLAND
Slide 20: Housing Finland and CEE: Strong consumer sales
KONEPAJA, HELSINKI, FINLAND Housing Finland and CEE Strong consumer sales COMPLETED CONSUMER APARTMENTS, units Adjusted Consumer operating profit sales up by 3,000 €8 8% million (9) y-o-y 2,000 Investor 1,000 Consumer start-ups up by start-ups slowed down 49% 0 y-o-y 1Q19 2Q19 3Q19 4Q19 1Q20 Finland
Slide 21: Housing Russia: Adjusted operating profit turned positive
TARMO, ST.PETERSBURG, RUSSIA Housing Russia Adjusted operating profit turned positive APARTMENT START-UPS, units Adjusted Revenue operating profit recognition 1,500 €6 over time (POC) million (-5) since Q1/20 1,000 Apartment 500 sales up by New service company with 19% Brusnika 0 y-o-y 1Q19 2Q19 3Q1
Slide 22: Business premises: Result burdened by financial settlements
REDING TOWER 2, BRATISLAVA, SLOVAKIA Business premises Result burdened by financial settlements ORDER BOOK, € million Adjusted Result burdened 1,500 operating profit by costs related to progress in -€12 financial million (5) settlements 1,000 Last stages of 500 Order book the Tripla stable project q
Slide 23: Infrastructure projects: Revenue and profitability improved
AALTO-YLIOPISTO METRO STATION, HELSINKI, FINLAND Infrastructure projects Revenue and profitability improved ORDER BOOK, € million Adjusted 1,500 operating profit Typical -€3 seasonality million (-6) 1,000 Revenue grew 500 by Order book stable 23% y-o-y 0 y-o-y 1Q19 2Q19 3Q19 4Q19 1Q20 23 Roadshow pr
Slide 24: Partnership properties: Accountor Tower transaction supported the result
PIKKUSIRKKU, RIIHIMÄKI, FINLAND Partnership properties Accountor Tower transaction supported the result PORTFOLIO VALUE, € million Adjusted Accountor operating profit Tower €14 transaction finalised million (-2) Portfolio value Strengthening €239 segment’s organisation 0 million 24 Roadshow presenta
Slide 25: Discontinued operations: Operational performance as planned
Discontinued operations Operational performance as planned Operating profit Successful -€23 winter planning million (-23) Strong order The European Sale of Nordic book of Commission paving and COMPLETED €249 approval for sale on March mineral APR 1, 2020 million 26, 2020 aggregates businesses 25 Roa
Slide 26: Continued plot investments for the future
Continued plot investments for the future OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million 132 -16 -22 -25 -9 -34 -10 -4 -2 -81 -3 -27 -51 -48 -9 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Associated companies and joint ventures Plot investments 26 Roadshow
Slide 27: Financial key ratios to improve significantly after closing of the transaction
Financial key ratios to improve significantly after closing of the Nordic paving and mineral aggregates transaction EQUITY RATIO AND GEARING, % NET DEBT / ADJUSTED EBITDA ratio 105% 5 100% As of 4 80% April 1, 2020 4.0 ~71% 3 60% As of As of April 1, 2020 April 1, 2020 2 ~2.8 40% ~32% 20% 30% 1 0% 0
Slide 28: Net debt increased slightly
Net debt increased slightly NET INTEREST-BEARING DEBT, MATURITY STRUCTURE1, € million € million 159 939 983 942 869 862 120 118 80 10 0 1Q19 2Q19 3Q19 4Q19 1Q20 2020 2021 2022 2023 2024 2025- 1 Excluding housing company loans related to unsold apartments, € 193 million, commercial papers, € 216 mill
Slide 29: Coronavirus pandemic causes uncertainties in the market
Coronavirus pandemic causes uncertainties in the market Business Infrastructure Partnership Housing premises projects properties Finland Russia Baltic countries Central European countries Sweden Norway Q1 market situation Market outlook, 12 months Good Normal Weak Improving Stable Weakening 29 Roads
Slide 30: 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 1,800 apartments under construction recognised 1,000 over time: • 2,517 for investors • 4,994 in Russia 2,908 2,600 200 218 200 1,000 471 600 500 500 400
Slide 31: Guidance for Q2/20
Guidance for Q2/20 Outlook blurred by significant market uncertainty because of the coronavirus pandemic. • Apartment sales • Business • Infrastructure • Rebound in at low level premises projects number of • Consumer segment’s segment customers in apartment revenue to impacted by Mall of Tripla comp
Slide 32: Our short-term priorities
Our short-term priorities Positive operating cash flow in 2020 Coronavirus pandemic: Construction sites Utilise YIT’s ongoing strong position 32 Roadshow presentation May-June 2020 HELSINKI-VANTAA AIRPORT, FINLAND
Slide 33: Appendices
HELSINKI-VANTAA AIRPORT, FINLAND 4 Appendices 33 Roadshow presentation May-June 2020
Slide 34: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Share ownership IV. Debt structure V. Investment portfolio VI. Occupational safety KEILALAMPI, ESPOO, FINLAND 34 Roadshow presentation May-June 2020
Slide 35: I. Key figures
I. Key figures € million 1-3/20 1-3/19 1-12/19 Revenue 708 675 3,392 Operating profit -3 -12 80 Operating profit margin, % -0.4 -1.8 2.4 Adjusted operating profit 8 -10 165 Adjusted operating profit margin, % 1.2 -1.4 4.9 Profit before taxes -16 -22 40 Profit for the review period -10 -18 5 Earnings
Slide 36: 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 907 546 800 428 863 261 247 800 353 728 664 600 584 600 644 660 428 400 469 510 545 433 401 400 200
Slide 37: 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 112 800 apartments further to consumers (1Q19: 129) 500 442 700 665 98 590 400 374 600 357 98 98 50
Slide 38: 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 779 120% 722 725 1000 700 662 100% 906 800 582 80% 500 571 594 600 60% 274 483 418 300 400 502 483 48% 40% 42% 42% 42% 44% 320 320 200 100 20% 153 0 1Q19 2Q19 3Q19
Slide 39: III. Share ownership, April 30, 2020
III. Share ownership, April 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 44,435 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 40: IV. YIT's Group Management Team
IV. YIT’s Group Management Team KARI ILKKA TOM TEEMU ANTTI HARRI JUHA ESA JUHANI PII KAUNISKANGAS SALONEN EKMAN HELPPOLAINEN INKILÄ KAILASALO KOSTIAINEN NEUVONEN NUMMI RAULO President and CEO CFO, Deputy to EVP, Business EVP, Housing EVP, Housing EVP, Infrastructure EVP, Urban EVP, Partnership EVP,
Slide 41: V. Debt structure, March 31, 2020
V. Debt structure, March 31, 2020 INTEREST-BEARING DEBT PORTFOLIO, INTEREST RATE DISTRIBUTION OF € million INTEREST PORTFOLIO1 3% 21% 23% 42% 19% 58% 17% 17% Bonds Commercial papers Housing company loans related to unsold apartments Fixed rate Floating rate Loans from financial institutions 1 Exclud
Slide 42: VI. Investment portfolio and estimated timelines
Partnership properties VI. 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
Slide 43: VII. Respecting life in the core of safety
Respecting life in the VII. core of safety LOST TIME INJURY FREQUENCY (LTIF), ROLLING 12 MONTHS 12 LTIF, rolling 12 months 10 8 6 10.2 injuries of YIT’s own 4 employees and 2 subcontractors per million hours worked 0 1Q19 2Q19 3Q19 4Q19 1Q20 43 Roadshow presentation May-June 2020 HENRIKSDAL WATER TR
Slide 44: Additional information
Additional information YIT Investor Relations [email protected] Tommi Järvenpää Vice President, Investor Relations YIT’s Half-year report +358 40 576 0288 will be published on [email protected] Tiina Kuusisaari Jul 28, Investor Relations Manager +358 40 528 8154 [email protected] 2
Slide 45: 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 46: Together we can do it.
Together we can do it.