Yit Oyj · OMXHEX:YIT
Yit Oyj — Investor Presentation (November 2018)
24 slides from Yit Oyj's investor presentation, Nov 27, 2018
Slide 1: Analyst Christmas lunch
Analyst Christmas lunch ILKKA SALONEN, CFO ESA NEUVONEN, EVP, BUSINESS PREMISES AND PARTNERSHIP PROPERTIES
Slide 2: Agenda
Agenda Agenda 1. Market and financial update THEME OF THE DAY: RENOVATION 2. Renovation’s role in YIT’s strategy 3. Renovation market and industry dynamics 4. YIT’s offering, targets and references in the renovation business 2 11/27/2018 YIT Analyst Christmas Lunch TIETOTIE DEVELOPMENT PROJECT ESPOO
Slide 3: Market and financial update
1 Market and financial update 3 11/27/2018 YIT Analyst Christmas Lunch PARLIAMENT HOUSE RENOVATION PROJECT HELSINKI, FINLAND
Slide 4: Market outlook for the next 12 months
Market outlook for the next 12 months Housing Finland and Housing Business Infrastructure Partnership CEE Russia premises projects Paving properties Finland Russia The CEE countries The Baltic countries The Czech Republic, Slovakia, Poland Scandinavia Sweden Norway Denmark Weakened outlook compared
Slide 5: Estimated completions of consumer apartment projects under construction
Estimated completions of consumer apartment projects under construction Apartments under construction in total on September 30, 2018: 14,666 (6/2018:14,938). The table below shows the company’s current estimate of completed consumer apartment projects under construction, 13,250 apartments in total.
Slide 6: Guidance for 2018 unchanged (as given on June 27, 2018)
Guidance for 2018 unchanged (as given on June 27, 2018) The Group pro forma revenue 2018 is estimated to decrease by -2% – -6% from pro forma revenue 2017 (pro forma 2017: EUR 3,862.5 million). In 2018, the adjusted pro forma operating profit1 is estimated to be in the range of EUR 130–160 million (
Slide 7: Strategic financial targets
Strategic financial targets Financial target Long-term target level ROCE-% >12% Gearing 30–50% Dividend per share Growing annually Roadshow presentation, November 2018 7
Slide 8: Renovation's role in YIT's strategy
2 Renovation’s role in YIT’s strategy 8 11/27/2018 YIT Analyst Christmas Lunch KEILANIEMI TOWER RENOVATION PROJECT SARC Arkkitehdit ESPOO, FINLAND
Slide 9: YIT Strategy 2019–2021 – Performance through cycles
YIT Strategy 2019–2021 – Performance through cycles Profitable and financially stable YIT STRATEGIC PRIORITIESSTRATEGIC PRIORITIES CORNERSTONESOF CORNERSTONES OF SUCCESS SUCCESS TOP PERFORMANCE • Synergies EUR 40–50 million URBAN DEVELOPMENT • Focus on productivity improvement Sustainable Focus in s
Slide 10: Renovation part of non-cyclical businesses
Renovation part of non-cyclical businesses SERVICES (LIVING AND PROPERTY PARTNERSHIP PROPERTIES MANAGEMENT SERVICES, • Mix of rental incomes, fair valuation ROAD MAINTENANCE) and capital gains to support stable • Long-term service agreements with good annual performance predictability • Combined ann
Slide 11: Renovation market and industry dynamics
3 Renovation market and industry dynamics 11 11/27/2018 YIT Analyst Christmas Lunch RUOHOLAHDENKATU 23 RENOVATION PROJECT HELSINKI, FINLAND
Slide 12: Relevant renovation market EUR 4-5 billion in Finland
Relevant renovation market EUR 4-5 billion in Finland THE FINNISH BUILDING CONSTRUCTION MARKET RENOVATION MARKET • Professional renovation market in Finland is TOTAL estimated to be EUR 4-5 billion Residential RENOVATION Non-residential renovation €13,1bn renovation • ~1/3 of total renovation market
Slide 13: A highly fragmented but steadily growing market
A highly fragmented but steadily growing market LARGET PLAYERS IN THE FINNISH RENOVATION MARKET BY REVENUE IN 2017 CONSTRUCTION VOLUME IN FINLAND Consti YIT * NCC Suomi Top 10 Fira companies correspond to Lujatalo approx. 25% of the €4-5bn RENOVATION AND MODERNISATION OF BUILDING CONSTRUCTION, EUR M
Slide 14: YIT's offering, targets and references in the renovation business
4 YIT’s offering, targets and references in the renovation business 14 11/27/2018 YIT Analyst Christmas Lunch HOTEL LILLA ROBERTS RENOVATION PROJECT HELSINKI, FINLAND
Slide 15: YIT's offering
YIT’s offering TRADITIONAL NEGOTIATION BASED SELF DEVELOPED CONTRACTING CONTRACTING PROJECTS • Selected projects that comply • Based on YIT’s competencies • Based on YIT’s competencies with internal targets and concepts as well as and concepts customer understanding and • No volume growth target, •
Slide 16: Typical customer expectations in renovation
Typical customer expectations in renovation PRIVATE SECTOR (B2B) HOUSING COMPANIES (B2B/C) PUBLIC SECTOR (B2B) • Ideas and innovativeness to develop the real estate • My needs are heard • Solution according to • Minimised disturbance • Minimised disturbance the needs • Possibility to use the • Smoot
Slide 17: Example of YIT's approach in negotiated contracting: office projects
Example of YIT’s approach in negotiated contracting: office projects Deep understanding of customer needs YIT’s Fast renovation concept • Supporting customer’s corporate culture, • Minimising the disturbance for end-users employee satisfaction and effectiveness of the organisation • Longer planning
Slide 18: Self developed projects: combining success factors
Self developed projects: combining success factors Location – proximity to good traffic 1 connections and services Project development and financing – 2 finding the right partnerships 3 Leasing: Finding the right user/users 4 Design management Project management and execution, 5 incl. investor sales
Slide 19: Keskuskatu 7 and Parliament Building renovation references
KESKUSKATU 7 PARLIAMENT BUILDING Helsinki Helsinki Customer: Ilmarinen Customer: Parliament of Finland Volume: 8,000 (+9,000 basement Volume: ~25,000 gross sqm incl. parking) gross sq.m Value: ~100 M€ Value: ~15 M€ Schedule: 9/2014-06/2018 Schedule: 4/2018-4/2019 Highlight: Extensive infra works Hig
Slide 20: Mikonkatu 9, Panuntie 11 and housing renovation references
KOY MIKONKATU 9 PANUNTIE 11 Helsinki Helsinki Customer: Ilmarinen Customer: Nordisk Renting Oy Volume: 11,600 gross sq.m (YIT as main tenant) Schedule: 6/2017-11/2018 Volume: 7,500 gross sq.m Highlight: Property renovation Schedule: 4/2018-12/2018 from offices to adaptable Highlight: Carried out as
Slide 21: Ruoholahdenkatu 23, Lönnrotinkatu 11 and Keilaniemi tower
RUOHOLAHDENKATU 23 LÖNNROTINKATU 11 Helsinki Helsinki Inv. customer: Cordea Savills fund Inv. customer: OP Vuokratuotto Tenants: CWT Kaleva Travel, Tenants: Lexia law, CMB Zeeland, HOK restaurants Partner: HGR Property partners Oy Volume: 6,444 gross sq.m Volume: 8,000 gross sq.m Schedule: 7/2015-10
Slide 22: Additional information
Additional information Ilkka Salonen Chief Financial Officer (CFO) +358 45 359 4434 [email protected] Hanna Jaakkola Vice President, Investor Relations +358 40 566 6070 [email protected] Follow YIT on Twitter @YITInvestors 22 11/27/2018 YIT Analyst Christmas Lunch
Slide 23: 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 24: Together we can do it.
Together we can doit.