Yit Oyj · OMXHEX:YIT
Yit Oyj — Non-Deal Roadshow (August 2020)
43 slides from Yit Oyj's roadshow presentation, August 2020
Slide 1: Roadshow presentation August 2020
HELSINKI-VANTAA AIRPORT, FINLAND Roadshow presentation August 2020
Slide 2: YIT in a nutshell
1 YIT in a nutshell 2 YIT Roadshow presentation August 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 0.28 € (in Finnish) +25% 77% 1st 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 > €4
Slide 7: YIT's strategy 2020-2022
2 YIT’s strategy 2020-2022 7 YIT Roadshow presentation August 2020 PURJEENTEKIJÄNKUJA, HELSINKI, FINLAND
Slide 8: Our vision is to create more life in sustainable cities
Our vision is to create more life in sustainable cities 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 Resp
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 258 M€ ORDER BOOK 4.1 B€ 9 YIT Roadshow presentat
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 YIT Roadshow presentation August 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 2Q20
3 Group development in 2Q20 12 YIT Roadshow presentation August 2020 PILIAMIESTIS, KAUNAS, LITHUANIA
Slide 13: Q2: Operations remained stable during the coronavirus pandemic with strong cash flow
Q2: Operations remained stable during the coronavirus pandemic with strong cash flow Financial settlements Strong liquidity and of €17 million in cash flow Business premises Apartment sales Order book grew by recovering towards the 6% end of quarter q-o-q 13 YIT Roadshow presentation August 2020 HOL
Slide 14: Materialised impacts of coronavirus pandemic moderate, uncertainties remain
Materialised impacts of coronavirus pandemic moderate, uncertainties remain Successfull actions • Speed and flexibility of organisation to adapt operations Q2 • Rapid proactive actions on sites ensuring continuity External impacts • Housing consumer sales dipped and started to recover • A few tempor
Slide 15: Order book increased 6% quarter-on-quarter
Order book increased 6% quarter-on-quarter REVENUE, € million ORDER BOOK, € million 1 152 4 764 4 652 4 131 4 074 3 848 808 757 708 700 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 15 YIT Roadshow presentation August 2020
Slide 16: Profitability negatively impacted by financial settlements
Profitability negatively impacted by financial settlements ADJUSTED OPERATING PROFIT, € million 121 Q2 adjusted operating profit margin 28 0.7% 26 8 5 (3.8) 2Q19 3Q19 4Q19 1Q20 2Q20 16 YIT Roadshow presentation August 2020 TRIPLA, HELSINKI, FINLAND
Slide 17: Adjusted operating profit per segment
Adjusted operating profit per segment € million 2Q19 2Q20 29 19 5 3 4 2 0 1 -3 -14 Housing FIN Housing Business Infrastructure Partnership & CEE RUS premises projects properties 17 YIT Roadshow presentation August 2020 HERTSI, HELSINKI, FINLAND
Slide 18: Housing Finland and CEE: Uncertainty affected consumer sales
KONEPAJA, HELSINKI, FINLAND Housing Finland and CEE Uncertainty affected consumer sales COMPLETED CONSUMER APARTMENTS, units Adjusted operating profit 2 000 Weaker sales €19 mix million (29) 1 000 Consumer sales Consumer recovering start-ups at from a drop in good level April 0 2Q19 3Q19 4Q19 1Q20 2
Slide 19: Housing Russia: Margins improved
TARMO, ST.PETERSBURG, RUSSIA Housing Russia Margins improved APARTMENT SALES, units Adjusted Revenue operating profit increased by €2 26% 1 000 million (-3) 500 Apartment Apartment sales grew start-ups stable in 3% continuing 0 y-o-y units 2Q19 3Q19 4Q19 1Q20 2Q20 Moscow and Moscow region Continuing
Slide 20: Business premises: Result burdened by financial settlements
REDING TOWER 2, BRATISLAVA, SLOVAKIA Business premises Result burdened by financial settlements ORDER BOOK, € million Adjusted 1 500 operating profit Financial €-14 settlements in two projects million (5) 1 000 500 Order book Organisation strong and revamped healthy 0 2Q19 3Q19 4Q19 1Q20 2Q20 20 YIT
Slide 21: Infrastructure projects: Revenue and profitability improved
AALTO-YLIOPISTO METRO STATION, HELSINKI, FINLAND Infrastructure projects Revenue and profitability improved ORDER BOOK, € million Adjusted Revenue grew 1 500 operating profit by €4 4% million (3) y-o-y 1 000 500 Order book State stimulus declined y-o-y packages in the Baltics agreed in and Norway Fi
Slide 22: Partnership properties: Segment's organisation strengthened
PIKKUSIRKKU, RIIHIMÄKI, FINLAND Partnership properties Segment’s organisation strengthened PORTFOLIO VALUE, € million Adjusted operating profit Organisation €1 strengthened million (0) Order book of Mall of Tripla fair value €286 0 unchanged million from real estate management 22 YIT Roadshow presen
Slide 23: Sale of Nordic paving and mineral aggregates businesses boosted cash flow
Sale of Nordic paving and mineral aggregates businesses boosted cash flow OPERATING CASH FLOW AFTER CASH FLOW OF INVESTMENTS, INVESTMENTS, € million € million -22 -30 -33 247 -10 -52 -2 -3 132 -81 -4 -51 -27 -48 -9 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Associated companies and joint vent
Slide 24: Strong liquidity position
Strong liquidity position NET INTEREST-BEARING DEBT, MATURITY STRUCTURE1, € million € million 983 204 939 942 862 159 715 118 0 10 0 2Q19 3Q19 4Q19 1Q20 2Q20 2020 2021 2022 2023 2024 2025- 1 Excluding housing company loans related to unsold apartments, € 207 million, commercial papers, € 200 million
Slide 25: Financial key ratios improved significantly
Financial key ratios improved significantly EQUITY RATIO AND GEARING, % NET DEBT / ADJUSTED EBITDA ratio 5 100% 4 80% 73% 3,5 3 60% 40% 2 33% 1 20% 0% 0 2Q19 3Q19 4Q19 1Q20 2Q20 4Q19 1Q20 2Q20 Gearing Equity ratio 25 YIT Roadshow presentation August 2020
Slide 26: Uncertainties caused by coronavirus pandemic continue in the market
Uncertainties caused by coronavirus pandemic continue in the market Business Infrastructure Partnership Housing premises projects properties Finland Russia Baltic countries Central European countries Sweden Norway Q2 market situation Market outlook, 12 months Good Normal Weak Improving Stable Weaken
Slide 27: 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 apartments under 1,500 900 construction recognised over time (POC): • 2,513 for investors • 5,420 in Russia 2,908 38 400 2,400 218 1 000 100 471 592 600
Slide 28: Guidance for Q3/20
Guidance for Q3/20 Consumer apartment Business premises completions at low segment to be Full year outlook level in Finland and CEE profitable clouded by uncertainty in consumer behavior In Russia, solid sales and and apartment operative performance completion timings at continue the end of the year
Slide 29: Our short-term priorities
Our short-term priorities Positive operating cash flow in 2020 Coronavirus pandemic: Construction sites Utilise YIT’s ongoing strong position 29 YIT Roadshow presentation August 2020 TRIPLA WORKERY EAST, HELSINKI, FINLAND
Slide 30: Appendices
HELSINKI-VANTAA AIRPORT, FINLAND 4 Appendices 30 YIT Roadshow presentation August 2020
Slide 31: Appendices
Appendices I. Key figures II. Housing sales and start-ups III. Share ownership IV. Management V. Debt structure V. Investment portfolio VI. Occupational safety KEILALAMPI, ESPOO, FINLAND 31 YIT Roadshow presentation August 2020
Slide 32: I. Key figures
I. Key figures € million 4-6/20 4-6/19 1-6/20 1-6/19 1-12/19 Revenue 700 757 1,407 1,432 3,392 Operating profit 0 -23 -4 -35 80 Operating profit margin, % 0.0 -3.0 -0.3 -2.4 2.4 Adjusted operating profit 5 28 13 19 165 Adjusted operating profit margin, % 0.7 3.8 0.9 1.3 4.9 Result before taxes -8 -3
Slide 33: 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 907 546 428 863 800 261 717 799 247 800 353 728 363 664 363 600 584 600 644 660 428 400 469 510 545
Slide 34: 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 63 800 apartments further to consumers (2Q19: 112) 500 442 700 665 98 590 400 374 600 357 98 98 500
Slide 35: 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 502 120% 750 722 725 1000 700 662 100% 906 320 807 800 80% 779 807 500 571 594 600 60% 320 483 582 153 300 400 483 54% 418 48% 40% 42% 42% 42% 44% 200 274 100 20%
Slide 36: III. Share ownership, June 30, 2020
III. Share ownership, June 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 44 656 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 37: 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 38: V. Debt structure, June 30, 2020
V. Debt structure, June 30, 2020 INTEREST-BEARING DEBT PORTFOLIO, INTEREST RATE DISTRIBUTION OF € million INTEREST PORTFOLIO1 3% 22% 23% 48% 52% 17% 17% 18% Bonds Commercial papers Housing corporation loans related to unsold apartments Fixed rate Floating rate Loans from financial institutions 1 Exc
Slide 39: 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 40: VII. Occupational safety
VII. Occupational safety LOST TIME INJURY FREQUENCY (LTIF), ROLLING 12 MONTHS 12 LTIF, rolling 12 months 10 8 6 10.0 injuries of YIT’s own 4 employees and 2 subcontractors per million hours worked 0 2Q19 3Q19 4Q19 1Q20 2Q20 LTIF (per one million hours worked) LTIF target (<9) 40 YIT Roadshow present
Slide 41: Additional information
Additional information YIT Investor Relations [email protected] Tommi Järvenpää Vice President, Investor Relations YIT’s Q3 interim +358 40 576 0288 report will be [email protected] published on Tiina Kuusisaari Investor Relations Manager Oct 30, +358 40 528 8154 [email protected]
Slide 42: 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 43: Together we can do it.
Together we can do it.