Financial statements bulletin 2019 Kari Kauniskangas, President and - PowerPoint PPT Presentation

MALL OF TRIPLA, HELSINKI, FINLAND Financial statements bulletin 2019 Kari Kauniskangas, President and CEO

TRIPLA, HELSINKI, FINLAND Contents 1 Group development in 2019 2 Group development in 4Q19 3 Segment reviews 4 Discontinued operations 5 Financial position and key ratios 6 Outlook and guidance 7 Appendices All 2018 figures are restated pro forma and 2019 figures are restated reported. Please see slide 34 for additional information. Figures in brackets refer to restated pro forma figures of the comparison period unless otherwise stated. 2 Financial statements bulletin 2019

2019 1 Group development in 3 Financial statements bulletin 2019 PANUKESKUS, FINLAND TRIPLA, HELSINKI, FINLAND

Good development continued in 2019 • Adjusted operating profit improved to 166 M€ (132) ADJUSTED OPERATING PROFIT PER SEGMENT IN 2019 AND 2018, EUR million, % 130.0 • Operating cash flow after investments 51 M€ (149) • Adjusted gearing 56.7% 103.3 110.0 91.4 82.7 90.0 • Success of Mall of Tripla 67.8 70.0 • Housing FIN & CEE consumer sales in units increased 50.0 18% from comparison period 7.4% 1.9% (8.9) (-0.9) 26.9 • Clear improvement in performance and order backlog in 0.5% 30.0 (-12.0) 14.9 Infrastructure projects 10.0 1.2 • Performance improved in Housing Russia, strategic decision to close underperforming units in Russia -10.0 -6.5 -7.1 -0.6% • Sale of Nordic paving and mineral aggregates -30.0 (6.5) businesses to Peab, closing expected Q1-Q2/2020 -32.8 -50.0 Housing FIN & Housing Russia Business premises Infrastructure Partnership CEE projects properties 2018 2019 Adjusted operating profit margin 2019 (2018) 4 Financial statements bulletin 2019

Proposal to the AGM: Dividend of EUR 0.28 • The Board of Directors proposes a dividend of EUR 0.28 REPORTED DIVIDEND PER SHARE (EUR) per share (0.27) • Payment in two instalments: 1. EUR 0.14 on April 7, 2020 2. EUR 0.14 on October 6, 2020 • Payout ratio of 93.3% of the adjusted EPS of continuing 0.12 1 operations 0.38 • Discretionary extra dividend of no more than EUR 0.12 per share proposed 0.28 Completion and conditions of Nordic paving and mineral aggregates • 0.27 0.25 businesses taken into account 0.22 0.22 • Proposal is in line with company’s target of annually 0.18 growing dividend 2013 2014 2015 2016 2017 2018 2019 Actual The Board of Directors’ proposal to AGM 1 Discretionary extra dividend of no more than EUR 0.12 per share 5 Financial statements bulletin 2019

Strong market position in all market areas FINLAND DEMANDING Revenue: 2,547 INFRASTRUCTURE Personnel: ~4,300 CONSTRUCTION TOP 5 URBAN SCANDINAVIA DEVELOPMENT Revenue: 156 TUNNEL TOP 1 Personnel: ~300 CONSTRUCTION TOP 4 HOUSING TOP 10-20 RUSSIA Helsinki Oslo TOP 3 Stockholm St. Petersburg Revenue: 268 Tallin Personnel: ~1,300 TOP 3 Tyumen Yekaterinburg Riga Moscow Kazan BALTIC COUNTRIES Vilnius HOUSING Revenue: 296 Gdansk TOP 5 DEVELOPMENT Personnel: ~1,200 Warsaw TOP 1 CEE COUNTRIES Prague Bratislava Revenue: 125 Personnel: ~300 Rostov-on-Don Business Partnership Housing Infra premises properties 6 Financial statements bulletin 2019 Market positions based on company’s own estimate.

YIT Strategy 2020-2022 - Performance through cycles Improving profitability and maintaining financial stability STRATEGIC PRIORITIES CORNERSTONES OF SUCCESS STRATEGIC PRIORITIES CORNERSTONES OF SUCCESS PRIORITY IN SHORT TERM URBAN DEVELOPMENT TOP PERFORMANCE Self-developed and longer value • Site productivity and good capital efficiency chain projects EBIT-% >10% • Benefit from service and process digitalisation Sustainable PARTNERSHIP PROPERTIES STEPPING UP SUSTAINABILITY urban development • Sustainability of own operations and products Development, structuring, • New business generation for lifecycle EBIT-% >5% EBIT-% 5-7% management and ownership of proprietary sourced real estate assets SUCCESS WITH CUSTOMERS AND PARTNERS SERVICES PARTNERSHIP PROPERTIES • Improving customer experience and NPS ROCE >15% • Deeper partnerships, higher value, more speed Services for the owners and users SERVICES of the built environment HAPPY PEOPLE EBIT-% >7% • Common culture, open and involving way to lead PERCENTAGES REFLECT GOOD PERFORMANCE IN BUSINESS • Most preferred employer in the field 7 Financial statements bulletin 2019

NORDIC SADYBA, WARSOW, POLAND 4Q19 2 Group development in 8 Financial statements bulletin 2019

All-time high adjusted operating profit in Q4 Improved Good Strong result profit in Weak quarter performance in in Business Housing in Housing FI Partnership premises Russia and & CEE Properties Infraprojects 14.8 39.0 -10.4 81.3 EUR million combined EUR million adjusted EBIT EUR million adjusted EBIT EUR million adjusted EBIT adjusted EBIT (4Q18: 28.5) (4Q18: 27.9) (4Q18: 56.1) (4Q18: -4.5) 9 Financial statements bulletin 2019

Clear improvement in operating profit, good order backlog ADJUSTED OPERATING PROFIT, EUR million, % REVENUE PER SEGMENT, EUR million ORDER BACKLOG PER SEGMENT, EUR million 1- 12/2018: 132 M€ 1- 12/2019: 166 M€ 1- 12/2018: 3,201 M€ 1- 12/2019: 3,392 M€ +2% +22% -4% 121.0 4,773 4,806 4,764 4,652 1,152 4,400 4,302 4,286 1,128 4,131 99.3 10.5% 808 8.8% 757 759 734 675 579 4.3% 3.8% 3.2% 2.7% 31.4 28.5 25.7 20.3 -3.3% -1.4% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 -9.7 Housing FIN & CEE Housing Russia Housing FIN & CEE Housing Russia -19.0 Business premises Infra projects Business premises Infra projects 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Partnership properties Partnership properties Adjusted operating profit Adjusted operating profit % 10 Financial statements bulletin 2019

Mall of Tripla had a significant impact on segments ’ results REVENUE PER SEGMENT, EUR million ADJUSTED OPERATING PROFIT PER SEGMENT, EUR million, % 100.0 81.3 80.0 480 446 439 439 354 56.1 380 60.0 280 39.0 223 40.0 205 28.5 27.9 180 7.9% 127 2.8% 107 (-3.0) (-0.3) 20.0 8.7% -2.4% 8.5 80 (8.0) (12.8) 6.3 0.0 -20 Housing FIN & Housing Russia Business premises Infrastructure Partnership -0.7 -3.8 CEE projects properties -10.4 -120 -20.0 Housing FIN & Housing Russia Business premises Infrastructure Partnership CEE projects properties 4Q18 4Q19 4Q18 4Q19 Adjusted operating profit margin 4Q19 (4Q18) 11 Financial statements bulletin 2019

Synergies and integration costs developing as estimated CUMULATIVE SYNERGIES, EUR million CUMULATIVE INTEGRATION COSTS 2 , EUR million 50 MAIN SOURCES OF SYNERGIES Measures done EBIT impact 2019 share 60 External Automatisation 40 services 37 47 47 Harmonisation 46 46 46 45 Overlaps 31 41 40 40 30 36 27 34 22 25 23 22 17 15 25 IT 20 19 6 20 19 19 19 19 19 10 Premises 0 0 1 Actual Actual Actual Actual Actual Target Actual Actual Actual Actual Actual Estimate 2018 1Q19 2Q19 3Q19 4Q19 2020 2018 1Q19 2Q19 3Q19 4Q19 2020 Additional synergy benefits expected from refinancing 1 According to the original target, full EBIT improvement potential EUR 40 million per annum by the end of 2020, original target was set in June 2017. 2 Integration costs for 2017, EUR 4 million included in the cumulative figure. 12 Financial statements bulletin 2019

Market outlook for the next 12 months Housing Finland Business Infrastructure Partnership and CEE Housing Russia premises projects properties Finland Russia The CEE countries The Baltic countries The Czech Republic, Slovakia, Poland Scandinavia Sweden Norway Weakened outlook compared to the past Improved outlook compared to the past Unchanged outlook compared to the past 12 months’ development 12 months’ development 12 months’ development 13 Financial statements bulletin 2019

YIT supports UN’s Sustainable Development Goals SDG analysis conducted during 4Q19 • YIT’S KEY SUSTAINABLE DEVELOPMENT THEMES AND THEIR RELATIONS TO SDG’S • Most material SDG’s for YIT’s operations: 8 Decent work and economic growth 1. Creating sustainable, comfortable and safe urban 1 11 Sustainable cities and communities development by utilizing opportunities provided by the circular economy. 12 Responsible consumption and production 13 Climate action 2. Compliance with good corporate governance. 2 Preventing corruption and the grey economy. 16 Peace, justice and strong institutions Read more about YIT’s contribution to SDG’s : • www.yitgroup.com/sustainabilitymanagement 3 Occupational safety . 3. 4. Promoting the personnel’s occupational well-being and 4 competence development. 5. Implementing responsible subcontracting and 5 procurement. 6. Reducing the environmental impacts of YIT’s own 6 operations. 14 Financial statements bulletin 2019

3 Segment reviews TAMPERE TRAMWAY, TAMPERE, FINLAND 15 Financial statements bulletin 2019 Pasi Tiittola / Raitiotieallianssi