Half-year Report January-June 2019 Kari Kauniskangas, President and - - PowerPoint PPT Presentation

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Half-year Report January-June 2019 Kari Kauniskangas, President and - - PowerPoint PPT Presentation

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TRIPLA PROJECT HELSINKI, FINLAND Half-year Report January-June 2019 Kari Kauniskangas, President and CEO Contents 1 Key strategic steps in Q2/2019 2 Group development in Q2/2019 3 Segment reviews 4 Discontinued operations 5 Financial

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SLIDE 1 Half-year Report January-June 2019 Kari Kauniskangas, President and CEO TRIPLA PROJECT HELSINKI, FINLAND
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SLIDE 2

Contents

1 Key strategic steps in Q2/2019 2 Group development in Q2/2019 3 Segment reviews 4 Discontinued operations 5 Financial position and key ratios 6 Outlook and guidance 7 Appendices Half-year Report January-June 2019 2 REDING TOWER 2 BRATISLAVA, SLOVAKIA All 2018 figures are restated pro forma and Q1/2019 figures are restated reported. Please see slide 35 for additional
  • information. Figures in brackets refer to restated pro forma
figures of the comparison period unless otherwise stated.
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SLIDE 3

Key strategic steps in Q2/20191

Half-year Report January-June 2019 3
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SLIDE 4 Nordic paving and mineral aggregates

YIT to sell Nordic paving and mineral aggregates businesses to Peab

FINANCIAL IMPACT Closing of the deal Jan 1, 2020 (est.). Transaction price EUR 280 million. Capital gain EUR 40 million. Cash flow impact approx. EUR 240 million. SCOPE OF THE TRANSACTION Paving and mineral aggregates businesses in Finland, Sweden, Norway and Denmark. Respective assets and personnel working with the divisions. NOT INCLUDED IN THE TRANSACTION Paving in Russia Strategic options to divest or close the business are under evaluation. Road maintenance in Finland Will be reported under Infrastructure projects segment within YIT. Paving in the Baltic countries Continues in Infrastructure projects segment as today. 4 Half-year Report January-June 2019
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SLIDE 5

2

SHARPEN CUSTOMER AND OPERATIONAL FOCUS

Nordic paving and mineral aggregates

Deal rationale

4

RESPONSIBLE INDUSTRIAL BUYER

1

ACCELERATE STRATEGY EXECUTION

3

  • Unified business portfolio with common core
  • Reduced operating model complexity
  • Paving business is in the core of Peab’s business
portfolio
  • Capital allocation to urban development projects
and other non-cyclical businesses, like services
  • Positive impact to the group financial position and
reduced earnings volatility during the year
  • Several years’ paving’s expected cash flow in
  • ne go

FINANCIALLY SOLID TRANSACTION

Half-year Report January-June 2019 5
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SLIDE 6 Russia

Significant steps to reduce capital and enhance profitability

FINANCIAL IMPACT Expected positive net cash flow impact EUR ~50 million 2019–2021. One-time write-off EUR 35 million on balance sheet values and provision of EUR 9 million. Expected release of capital employed EUR ~100 million 2019-2021. SCOPE OF THE ACTIONS Discontinue residential construction in Moscow, the Moscow region and Rostov-
  • n-Don.
Closing contracting unit. Exit the paving business either by closing down or by selling the
  • perations.
FOCUS IN THE FUTURE, NOT INCLUDED IN THE ACTIONS Residential construction business in St. Petersburg, Kazan, Yekaterinburg and Tyumen. Living services. 6 Half-year Report January-June 2019 EVROPEISKI RESIDENTIAL COMPLEX YEGORIEVSK, RUSSIA
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SLIDE 7

YIT Strategy 2019-2021 - Performance through cycles

Profitable and financially stable YIT

TOP PERFORMANCE
  • Synergies EUR 46-50 million
  • Focus on productivity improvement
CAPITAL EFFICIENCY
  • Leaner operating model in Russia
  • Annual free cashflow EUR +150 million
HAPPY PEOPLE
  • Common culture, open and involving way to lead
  • Most preferred employer in the field
SUCCESS WITH CUSTOMERS AND PARTNERS
  • Improving customer experience and NPS
  • Deeper partnerships, higher value, more speed
STRATEGIC PRIORITIES CORNERSTONES OF SUCCESS URBAN DEVELOPMENT Focus in self-developed, longer value chain and negotiation based projects NON-CYCLICAL BUSINESSES Annual EBIT EUR >100 million from non-cyclical businesses from 2019 on NON-CYCLICAL OFFERING: SERVICES, RENOVATION, PAVING, OWNERSHIP PARTNERSHIP PROPERTIES PAVING Sustainable urban development STRATEGIC PRIORITIES CORNERSTONES OF SUCCESS 7
  • Unchanged. The share of paving
business is estimated to be replaced with other businesses within 3 years. Half-year Report January-June 2019
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SLIDE 8

Group development in Q2/20192

Half-year Report January-June 2019 8 KONEPAJA AREA DEVELOPMENT PROJECT HELSINKI, FINLAND
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SLIDE 9

Recent structural changes and changes in reporting

Half-year Report January-June 2019 9 Continuing operations Discontinued operations Housing FI&CEE Housing Russia Partnership properties Other Residential construction in St. Petersburg, Kazan, Yekaterinburg and Tyumen Living services Paving in Finland Paving in Sweden Paving in Norway Paving in Denmark Mineral aggregates Paving in Russia Business premises Infrastructure projects Road maintenance in Finland Original structure of Housing FI&CEE segment Original structure of Business premises segment Original structure of Infrastructure projects segment Original structure of Partnership properties segment Original structure of Other items Residential construction in Moscow, Moscow region and Rostov-
  • n-Don
Contracting in Russia Discontinued
  • perations
Former Paving segment Excluded from adjusted
  • perating profit.
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SLIDE 10

Q2 in brief

10

Strategic steps in Paving1 and Russia Strong order backlog Strong profitability in Housing Finland and CEE Good institutional investor and stable consumer sales in Finland

10.2%

Sold apartments in Finland (Q2/2018: 1,018) EUR billion order backlog
  • n June 30
(Jun 30, 2018: 4.8) Adjusted EBIT margin (Jun 30, 2018: 9.6%)

1,481

EUR million positive cash flow impact 2019-2021

~300 4.7

Half-year Report January-June 2019 1 Occured after the review period, on July 4, 2019
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SLIDE 11

Improved operating profit and strong order backlog

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Housing FIN & CEE Housing Russia Business premises Infra projects Partnership properties 11 ORDER BACKLOG PER SEGMENT, EUR million 4,400 4,773 4,806 4,286 4,652
  • 19.0
20.3 31.4 99.3
  • 9.7
28.5
  • 3.3%
2.7% 4.3% 8.8%
  • 1.4%
3.8% Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Adjusted operating profit Adjusted operating profit % Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Housing FIN & CEE Housing Russia Business premises Infra projects Partnership properties 579 759 734 1,128 675 ADJUSTED OPERATING PROFIT, EUR million, % REVENUE PER SEGMENT, EUR million 757 4,302 Half-year Report January-June 2019 *Order backlog of discontinued operations excluded. Q2/19 discontinued operations order backlog EUR 300 million (296). *
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SLIDE 12

Performance by segment in Q2

12 REVENUE PER SEGMENT, EUR million 317 53 212 176 286 35 247 193
  • 20
30 80 130 180 230 280 330 Housing FIN & CEE Housing Russia Business premises Infrastructure projects Partnership properties Q2/2018 Q2/2019 ADJUSTED OPERATING PROFIT PER SEGMENT, EUR million, % 30.4
  • 7.3
5.3
  • 0.8
  • 0.6
29.1
  • 2.7
5.2 2.8
  • 0.2
  • 50.0
  • 40.0
  • 30.0
  • 20.0
  • 10.0
0.0 10.0 20.0 30.0 40.0 50.0 Housing FIN & CEE Housing Russia Business premises Infrastructure projects Partnership properties Q2/2018 Q2/2019
  • 7.8%
(-13.7) 2.1% (2.5) 1.5% (-0.5) Adjusted operating profit% in Q2/19 (Q2/18) Half-year Report January-June 2019 10.2% (9.6)
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SLIDE 13

Synergies and integration costs

CUMULATIVE SYNERGIES Additional synergy benefits expected from refinancing Overlaps Premises IT Harmoni sation External services Automati sation MAIN SOURCES OF SYNERGIES INTEGRATION COSTS 2 1 According to the original target, full EBIT improvement potential per annum by the end of 2020, original target was set in June 2017. The target was raised in connection with Interim Report January–March 2018. 2 Integration costs for 2017, EUR 4 million included in the cumulative figure 19 40 45 46 46-50 19 25 34 46-50 20 40 60 Actual (2018) Actual (Q1/2019) Actual (Q2/2019) Target (2020) Measures done EBIT impact 6 19 15 19 1 22 23 25 40 20 40 60 Actual (2018) Actual (Q1/2019) Actual (Q2/2019) Estimate (2020) Cumulative integration costs 13 Half-year Report January-June 2019
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SLIDE 14

Market outlook for the next 12 months

14 Housing Finland and CEE Housing Russia Business premises Infrastructure projects Partnership properties Finland Russia The CEE countries The Baltic countries The Czech Republic, Slovakia, Poland Scandinavia Sweden Norway Unchanged outlook compared to the past 12 months’ development Improved outlook compared to the past 12 months’ development Weakened outlook compared to the past 12 months’ development Half-year Report January-June 2019
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SLIDE 15

Sustainability targets set for 2019

15 SIGNIFICANCE FOR STAKEHOLDERS SIGNIFICANCE OF IMPACTS 1 6 5 4 3 2
  • YIT’s sustainability targets for 2019
based on the materiality matrix to guide YIT’s sustainability work.
  • Targets approved by Group Management
Team and published as part of Sustainability Review 2018 in May.
  • Full list of YIT’s sustainability targets in
YIT Sustainability Review 2018. YIT’S SUSTAINABILITY TOPICS AND TARGETS 1.
  • Circular economy potential
  • Sustainable urban development KPI’s
2.
  • Responsible business principles
  • Fighting corruption and transparent
actions 3.
  • Preventive occupational safety targets
  • Reactive occupational safety targets
4.
  • Positive work athmosphere
  • Supervisory work
  • Human rights
5.
  • Audits and harmonising procurement
processes
  • Increasing transparency
6.
  • Energy and material efficiency
  • Carbon calculations
  • Recycling and reuse of materials
Half-year Report January-June 2019
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SLIDE 16

Segment reviews

3

16 HENRIKSDAL WASTE WATER TREATMENT PLANT STOCKHOLM, SWEDEN Half-year Report January-June 2019
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SLIDE 17 Housing Finland and CEE

Healthy profitability

  • Profitability on healthy level 10.2% (9.6%)
  • Strong institutional sales of 993 apartments.
  • Consumer demand stable in Finland and good in CEE:
  • Finland, sold apartments 488.
  • CEE, sold apartments in total 343 (incl. 107 fund sales).
  • Number of unsold completed units at the end of the period
was in Finland 447 (03/19: 216) and 64 in CEE countries (03/19: 73). 17 972 916 1,327 1,295 1,080 1,395 162 499 123 643 307 88% 87% 75% 92% 79% 81% 0% 50% 100% 150% 200% 250% 300% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Finland CEE countries
  • f which for consumers
COMPLETED APARTMENTS, units 1,134 1,415 1,450 1,938 1 1 Includes projects in the CEE sold to YCE housing I fund that is reported in the Partnership properties segment EUR million Q2/2019 reported Q2/2018 pro forma, restated Revenue 286 317 Adjusted operating profit 29.1 (10.2%) 30.4 (9.6%) Order backlog 1,649 1,774* Capital employed 709 518* 1,702 * Reported Half-year Report January-June 2019
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SLIDE 18 Housing Russia

Significant steps to reduce capital and enhance profitability

  • Focus in the future on residential construction in St. Petersburg,
Kazan, Yekaterinburg and Tyumen and living services.
  • Discontinue residential construction in Moscow, Moscow region and
Rostov-on-Don as well as contracting.
  • Expected positive net cash flow impact EUR ~50 million 2019–
2021.
  • One-time write-off EUR 26 million on balance sheet values and
provision of EUR 8 million.
  • Slight positive adjusted EBIT impact in Q2 and negative in full
year. 18 245 343 180 979 221 410 233 274 720 266
  • 100
400 900 1400 1900 2400 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 St Petersburg Moscow area Russian regions COMPLETED APARTMENTS, units 699 2,042 EUR million Q2/2019 reported Q2/2018 pro forma, restated Revenue 35 53 Adjusted operating profit
  • 2.7
(-7.8%)
  • 7.3
(-13.7%) Order backlog 430 453* Capital employed 280 353* 487 * Reported Half-year Report January-June 2019
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SLIDE 19 Business premises

Major projects added to order backlog

  • Revenue grew and operating profit was stable.
  • Several major projects added to backlog of orders during
Q2, e.g. Vaasa Central Hospital, Hamburger Börs and multiple life-cycle projects.
  • Announced Mall of Tripla opening day, Oct 17, 2019.
  • Occupancy rates in Mall of Tripla (94%) and Tripla offices
(89%) high at the end of the period. 19 ORDER BACKLOG BY PROJECT TYPE, EUR million 1 Includes tender-based projects as well as lifecycle projects and their service agreements. EUR million Q2/2019 reported Q2/2018 pro forma, restated Revenue 247 212 Adjusted operating profit 5.2 (2.1%) 5.3 (2.5%) Order backlog 1,286 1,589* Capital employed 77 104* 540 519 400 52 75 103 735 636 782 200 400 600 800 1,000 1,200 1,400 Q4/18 Q1/19 Q2/19 Self developed Negotiated contracting Others 1,327 1 1,230 * Reported 1,286 Half-year Report January-June 2019
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SLIDE 20 Infrastructure projects

Positive development in order backlog and margins of new projects

  • Road maintenance business in Finland transferred to Infrastructure
projects from Paving.
  • Revenue increased due to higher year-on-year volumes.
  • Operating profit increased due to improved margin quality of new
contracts.
  • Blominmäki wastewater treatment plant contract model changed to
cost-plus-fee to avoid risks for cost overrun.
  • Positive development in order backlog and margins of new projects
during the quarter.
  • Several big projects added to order backlog in Q2: e.g. Raide-
Jokeri light rail in Finland and Henriksdal’s wastewater tunnel. 20 ORDER BACKLOG AND ILLUSTRATIVE SHARE OF ORDERS, EUR million 200 400 600 800 1000 1200 1400 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Share of pre merger orders (infra) Share of post merger orders (infra) Share of road maintenance orders EUR million Q2/2019 reported Q2/2018 pro forma, restated Revenue 193 176 Adjusted operating profit 2.8 (1.5%)
  • 0.8
(-0.5%) Order backlog 1,270 929* Capital employed 78 72* * Restated reported Half-year Report January-June 2019
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SLIDE 21 Partnership properties

Investment portfolio evolving

  • Occupancy rate of Mall of Tripla was 94% at the end of
period.
  • Investment portfolio moving to a new phase with Mall of
Tripla completion and opening taking place in Q4/2019.
  • Fair valuation of investment in Mall of Tripla being
prepared. 21 EUR million Q2/2019 reported Q2/2018 pro forma, restated Revenue 0.1 Adjusted operating profit
  • 0.2
  • 0.6
Capital employed 150 143* KEILANIEMI DEVELOPMENT PROJECT ESPOO, FINLAND * Reported Half-year Report January-June 2019
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SLIDE 22

Partnership properties project portfolio and estimated timelines

22 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Rental apartment joint venture YCE Housing I project development fund ÅB Lunastustontti I Ky plot fund Helsinki Garden Trigoni Helsinki High Rise Campus Maria Otava property Telia Campus Keilaniemi area Mall of Tripla E18 Hamina-Vaalimaa motorway Planning and zoning period Estimated constuction period Income for Partnership properties segment Illustration of potential exit period TOTAL INVEST- MENT CAPACITY YIT’S OWNERSHIP YIT’S EQUITY INVESTMENT 235 M€ 20% 5 M€ 600 M€ 38.75% 117 M€ 800 M€ 50% 8 M€2 200-500 M€ 100-200 M€ 300 M€ 500+500 M€ 500-600 M€ 100 M€ 20% 10 M€ 100 M€ 40% 15 M€ 100 M€ 49% 11 M€ 1 Construction subject to required decisions 2 YIT’s current equity investment in Regenero 1 Half-year Report January-June 2019 1 1
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SLIDE 23

Discontinued operations

23 Half-year Report January-June 2019

4

REMIXER METHOD SOUTHERN FINLAND
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SLIDE 24 Discontinued operations – Nordic paving and mineral aggregates businesses and related allocations

Slow start in Finland and Denmark

  • Record-high order backlog of EUR 300 million.
  • Adjusted operating profit of the Nordic paving and mineral aggregates
businesses were EUR 4.2 million lower year-on-year:
  • Declining demand in mineral aggregates in Finland.
  • Many significant projects postponed to Q3/19.
  • Clear improvement in performance in Norway and Sweden.
  • Adjusted operating profit of former Paving segment divisions Road
maintenance and Paving Russia were in line quarter-to-quarter.
  • Operating profit of discontinued operations includes additional allocations
effecting the operating profit (e.g. purchase price allocations from Lemminkäinen merger and transaction costs). 24 OPERATING PROFIT AND ORDER BACKLOG, EUR million EUR million Q2/2019 reported Q2/2018 pro forma, restated Revenue 149 149 Operating profit
  • 3.6
(-2.4%)
  • 0.7
(-0.5%) Order backlog 300 296 296 300 Order backlog Q2/2018 Q2/2019
  • 0.7
  • 3.6
Operating profit Operating profit Order backlog Half-year Report January-June 2019
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SLIDE 25

Financial position and key ratios5

25 Half-year Report January-June 2019 TIMBER CAMPUS PUDASJÄRVI, FINLAND
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SLIDE 26

Operating cash flow negative

  • Operating cash flow in Q2 after investments was EUR -51.0 million (+129.9).
  • Plot investments especially in Housing Finland and CEE.
  • Comparison period was supported by improved capital efficiency related to integration.
  • 1-6/2019 operating cash flow amounted to EUR -54.2 million (-22.8).
26
  • 153
130
  • 33
205
  • 3
  • 51
Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 OPERATING CASH FLOW AFTER INVESTMENTS, EUR million CASH FLOW OF PLOT INVESTMENTS AND INVESTMENTS TO ASSOCIATED COMPANIES AND JOINT VENTURES, EUR million Comparison figures are restated reported figures.
  • 46
  • 6
  • 16
  • 26
  • 16
  • 34
  • 21
  • 7
  • 7
  • 5
  • 9
  • 3
Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 Cash flow from investments to associated companies and joint ventures Cash flow from plot investments Half-year Report January-June 2019
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SLIDE 27

Adjusted net debt lower than on comparison period

  • Adjusted net debt amounted to EUR 672 million (734).
  • In July 2019 EUR 100 million unsecured senior bond, fixed rate 7.375%, was repaid on its maturity date.
  • In order to improve comparability between quarters, the company has excluded the IFRS 16 impact from the graphs below.
27 734 768 563 556 672 286 205 264 153 113 48 49 65 69 61 Q2 Q3 Q4 Q1 Q2 2018 2019 Net debt Cash and cash equivalents Interest-bearing receivables 150 109 129 9 159 10 2019 2020 2021 2022 2023 2024- ADJUSTED NET INTEREST-BEARING DEBT1, EUR million MATURITY STRUCTURE, NOMINAL AMOUNTS2, EUR million 1 Excluding IFRS 16 lease liabilities, EUR 267 million. Finance lease liabilities are included in lease liabilities as of 1.1.2019. 2 Excluding housing corporation loans, EUR 206 million (these loans will be transferred to the buyers of the apartments when the units are handed over), commercial papers, EUR 75 million and IFRS 16 lease liabilities, EUR 267 million Half-year Report January-June 2019
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SLIDE 28

Adjusted financial key ratios

28 ADJUSTED GEARING1, % ADJUSTED EQUITY RATIO1, % ADJUSTED NET DEBT1 / ADJUSTED EBITDA2 (multiple, x) 79.8 73.4 75.5 53.6 56.2 70.7 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 39.1 33.9 34.8 38.1 37.0 33.9 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 4.8 4.8 5.6 3.2 3.0 3.5 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 1 Excluding IFRS 16 impact in 2019 figures. 2018 figures are reported figures. 2 2018 figures are pro forma figures.
  • Strategic gearing target 30-50% estimated to be reached ahead of schedule thanks to recent corporate
  • transactions. Impact materialising in the beginning of 2020.
Half-year Report January-June 2019
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SLIDE 29 29

Capital employed by segment

Half-year Report January-June 2019 756 679 708 307 314 280 45 65 77 87 77 78 145 149 150 323 449 359 238 147 Jan 1, 2019 3/2019 6/2019 Housing FIN & CEE Housing Russia Business premises Infrastructure projects Partnership properties Other Reconciliation CAPITAL EMPLOYED BY SEGMENT, EUR million 1 Reconciliation relates to discontinued operations which are not part of segment reporting. 1 1,902 1,880 1,651
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SLIDE 30

Outlook and guidance

6

30 PURJEENTEKIJÄNKUJA RESIDENTIAL APARTMENT PROJECT LAUTTASAARI, FINLAND Half-year Report January-June 2019
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SLIDE 31

Estimated completions of consumer apartment projects under construction

31 Apartments under construction in total on June 30, 2019: 14,378. Table below shows the company’s current estimate of completed consumer apartment projects under construction to be completed. In Russia, all projects under construction are included also the ones which are not included in adjusted operating profit. In addition, the company has 2,290 apartments (03/19: 2,364) that are recognised in accordance with percentage of completion. Timing of commissioning permit may deviate from the technical completion of a building, and the company cannot fully influence the reported completion date. Also other factors may influence the completion date. FY 2018 Actual FY 2019 Estimate Q1/2019 Actual Q2/2019 Actual Q3/2019 Estimate (Act. Q3/18) Q4/2019 Estimate Q1/2020 Estimate Q2/2020 Estimate Later Finland 1 3,657 2,734 858 1,076 300 (690) 500 400 500 1,337 CEE 2 1,427 1,507 307 400 (123) 700 100 100 1,510 Russia 3 2,974 3,897 487 410 600 (699)4 2,4004 400 400 2,441 In total 8,058 8,038 1,345 1,793 1,300 (1,512) 3,600 900 1,000 5,288 1 In Finland, the estimate of completions may deviate with tens apartments depending on the construction schedule. 2 In CEE countries, the estimate of completions may vary with tens apartments, a deviation of over 100 apartments is possible depending on authorities’ decisions. The figure includes projects sold to YCE housing fund I. 3 In Russia, the estimate of completions may vary with hundreds apartments, a deviation of over 500 apartments is possible depending on authorities’ decisions. 4 Approximately 50% of the apartments to be completed are in the regions where the operations are to be sold or discontinued. Half-year Report January-June 2019
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SLIDE 32

Guidance for 2019

GUIDANCE RATIONALE
  • The result guidance for 2019 is based, for instance, on the completion of Mall of Tripla in the last quarter, the estimated
time of completion of residential projects under construction, and the company’s solid order backlog. At the end of June, 77% of the order backlog had been sold.
  • Significant fluctuation is expected to take place between the quarters due to normal seasonal variation, sales of business
premises projects, and the time of completion of residential projects and Mall of Tripla. As in 2018, the last quarter of the year is expected to be clearly the strongest.
  • The company estimates that the adjusted operating profit for the third quarter of 2019 will decrease from the comparison
period (pro forma, restated EUR 31.4 million) and be clearly positive. 32 The Group revenue of continuing operations for 2019 is estimated to be in the range of +5% and -3% compared to the 2018 combined revenue of continuing operations (pro forma, restated 2018: EUR 3,201.0 million). Previously the company estimated the revenue in 2019 to be in the range of +5% and -5% compared to 2018. In 2019, the adjusted operating profit1 of continuing operations is estimated to be EUR 160-200 million (pro forma, restated 2018: EUR 132.0 million). Previously the company estimated the adjusted operating profit of continuing operations in 2019 to be EUR 150-210 million. 1 The adjusted operating profit reflects the result of ordinary course of business and does not include material reorganisation costs, impairment charges or other items affecting comparability. Adjusted operating profit is disclosed to improve comparability between reporting periods. Adjusting items are defined more precisely in bulletin’s the tables section. Half-year Report January-June 2019
slide-33
SLIDE 33

Additional information

Ilkka Salonen Chief Financial Officer (CFO) +358 45 359 4434 ilkka.salonen@yit.fi Hanna Jaakkola Vice President, Investor Relations +358 40 566 6070 hanna.jaakkola@yit.fi Follow YIT on Twitter @YITInvestors Half-year Report January-June 2019 33 MARIA 01 HELSINKI, FINLAND

YIT’S CAPITAL MARKETS DAY

On September 26, 2019 in Helsinki, Finland
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SLIDE 34

Appendices

7

34 TRIPLA PROJECT HELSINKI, FINLAND Half-year Report January-June 2019
slide-35
SLIDE 35

Presentation of financial information in Q2

35 Half-year Report January-June 2019 Continuing and discontinued operations
  • The text section of this half-year report concerns continuing operations, i.e. the five reported segments listed below.
  • Nordic paving and mineral aggregate businesses are classified as held-for-sale assets and reported as discontinued operations.
  • Reported and pro forma income statements of comparative periods have been retrospectively restated and published on July 22nd, 2019.
  • The result from discontinued operations is presented in the income statement net of tax on the line “Result for the period, discontinued operations”
  • Assets and liabilities related to the discontinued operations are presented in separate line items in the balance sheet in current assets and current
liabilities from June 30, 2019 onwards. Assets are reported as “Assets classified as held-for-sale” and liabilities as “Liabilities directly associated with assets classified as held-for-sale”
  • The balance sheet is not restated for comparative periods.
  • Cash flow statement is not restated.
Change in the reported segments
  • From the second quarter of 2019 on, YIT’s continuing operations include five reported segments: Housing Finland and CEE, Housing Russia,
Business premises, Infrastructure projects and Partnership properties.
  • The former Paving segment is no longer reported.
  • Road maintenance in Finland, previously reported in the former Paving segment, is reported as part of Infrastructure projects.
  • Paving business in Russia, previously reported in the former Paving segment, are reported under “Other items” in segment reporting.
  • Segment figures for comparative periods have been retrospectively restated and published on July 22.
Restated pro forma figures
  • YIT and Lemminkäinen merged on February 1, 2018.
  • In this half-year report, comparison figures are pro forma figures so that the financial statements of merged Lemminkäinen for the financial period
January 1‒January 31, 2018, excluding above mentioned discontinued operations, are included in the pro forma figures, and are presented in the tables in the columns “Pro forma, restated 1‒6/18” and “Pro forma, restated 1‒12/18”. Additional information regarding the presentation of financial information is available at the end of the explanatory statement of the half-year report. Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year, are restated pro forma and of the same unit. YIT announced on July 4, 2019 the sale of its Nordic paving and mineral aggregate businesses and on June 20, 2019 measures in Russia to reduce capital and enhance profitability. YIT’s HEADQUARTERS HELSINKI, FINLAND
slide-36
SLIDE 36

Appendices

I. Key figures and additional information about financial position II. Housing sales and start-ups III. Share ownership IV. General economic and construction indicators V. Housing indicators VI. Business premises and infrastructure indicators 36 Half-year Report January-June 2019
slide-37
SLIDE 37

Key figures and additional information about financial position

I

37 Half-year Report January-June 2019
slide-38
SLIDE 38

Key figures

EUR million Reported 4-6/19 Pro forma, restated 4-6/18 Change Reported 1–6/19 Pro forma, restated 1–6/18 Change Pro forma, restated 1–12/18 Revenue 756.5 759.4 0% 1,431.6 1,338.8 7% 3,201.0 Operating profit
  • 22.8
11.8
  • 34.9
  • 8.8
104.7 Operating profit margin, %
  • 3.0%
1.6%
  • 2.4%
  • 0.7%
3.3% Adjusted operating profit 28.5 20.3 40% 18.8 1.4 132.0 Adjusted operating profit margin, % 3.8% 2.7% 1.3% 0.1% 4.1% Adjustments 51.3 8.5 500% 53.7 10.1 432% 27.2 Order backlog 4,652.1 4,772.83
  • 3%
4,652.1 4,772.83
  • 3%
4,285.63 Profit before taxes
  • 32.2
  • 0.5
  • 54.5
  • 27.7
71.4 Profit for the review period, continuing operations
  • 42.7
  • 2.3
  • 60.5
  • 27.5
48.7 Profit for the review period, discontinued operations
  • 4.2
  • 2.0
  • 24.4
  • 28.9
  • 15.4
Profit for the review period1
  • 46.9
  • 4.3
  • 995%
  • 84.9
  • 56.5
  • 50%
33.3 Earnings per share, EUR
  • 0.22
  • 0.02
  • 0.40
  • 0.27
  • 48%
0.16 Operating cash flow after investments, excluding discontinued operations
  • 51.0
129.92
  • 54.2
  • 22.82
148.62 Equity ratio at the end of the period, % 30.8 33.92
  • 9%
30.8 33.92
  • 9%
38.12 Adjusted equity ratio at the end of the period, % 33.9 n/a 33.9 n/a n/a Net interest-bearing debt at the end of the period 939.3 734.02 28% 939.3 734.02 28% 562.92 Adjusted net interest-bearing debt at the end of the period 672.1 n/a 672.1 n/a n/a Gearing at the end of the period, % 98.8 73.42 35% 98.8 73.42 35% 53.62 Adjusted gearing at the end of the period, % 70.7 n/a 70.7 n/a n/a Number of personnel at the end of period 7,936 8,4173 7,936 8,4173 7,5563 1 Attributable to equity holders of the parent company 2 Reported 3 Restated reported 38 Half-year Report January-June 2019
slide-39
SLIDE 39

Balanced debt portfolio

39 INTEREST RATE DISTRIBUTION OF INTEREST PORTFOLIO2 AT END OF 6/2019 INTEREST BEARING DEBT PORTFOLIO2 AT THE END OF 6/2019, EUR 846 MILLION Bonds, 41% Housing corporation loans, 24% Loans from financial institutions, 15% Commercial papers, 9% Pension loans, 6% Other interest-bearing debt, 4% BONDS Maturity Initial amount Issue date Coupon July 6, 20191 EUR 100 million June 26, 2014 7.375% June 11, 2021 EUR 100 million June 11, 2018 3.150% June 11, 2023 EUR 150 million June 11, 2018 4.250% RCF Maturity Initial amount Issue date Status August 2021 EUR 300 million February 2018 Undrawn YIT’S GENERALLY USED COVENANTS
  • Gearing
  • Equity ratio
  • Interest cover ratio
Floating rate, 24% Fixed rate, 76% 1 Repaid after the review period 2 Excluding IFRS 16 lease liabilities, EUR 267 million Half-year Report January-June 2019
slide-40
SLIDE 40

Foreign exchange rates in Q2

40 EUR/RUB exchange rates 1–6/2019 1–6/2018 1-12/2018 Average rate 73.7181 71.9852 74.0687 End of period 71.5975 73.1582 79.7153 Principles of managing currency risks
  • Sales and project costs typically in same currency,
all foreign currency items hedged → no transaction impact
  • Currency positions affecting the income statement,
such as loans to subsidiaries, are hedged
  • Equity and equity-like investments in foreign
currency not hedged
  • Considered to be of permanent nature
  • FX changes recognised as translation
difference in equity Half-year Report January-June 2019
slide-41
SLIDE 41

Housing sales and start-upsII

41 Half-year Report January-June 2019
slide-42
SLIDE 42 Housing Finland

Sales and start-ups in Q2

694 542 480 467 433 401 182 476 313 348 939 1080
  • 100
100 300 500 700 900 1100 1300 1500 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 To consumers To investors (funds) 42 SOLD APARTMENTS, units 949 814 447 444 510 644 144 404 243 348 353
  • 100
100 300 500 700 900 1100 1300 1500 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 To consumers To investors (funds) APARTMENT START-UPS, units 876 1,018 793 1,093 1,218 690 792 815 863 1,372 1,481 993 1,637 Half-year Report January-June 2019
slide-43
SLIDE 43 Housing CEE

Sales and start-ups in Q2

43 172 245 241 292 259 236 113 141 98 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 To consumers To investors (funds) SOLD APARTMENTS, units 449 282 150 431 319 345 113 141 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 To consumers To investors (funds) APARTMENT START-UPS, units Of projects earlier sold to YCE Housing I fund or a JV, and recorded as investor sales, YIT sold 107 apartments further to consumers (Q2/2018: 141) 358 395 572 433 357 Half-year Report January-June 2019
slide-44
SLIDE 44 Housing Russia

Sales and start-ups in Q2

44 779 827 892 1,184 722 725 49% 45% 47% 45% 48% 42% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% 20 0 40 0 60 0 80 0 10 00 12 00 14 00 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Sold apartments Financed with mortgages (%) SOLD APARTMENTS, units 815 724 923 1,232 571 1,281 20 0 40 0 60 0 80 0 10 00 12 00 14 00 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 APARTMENT START-UPS, units Half-year Report January-June 2019
slide-45
SLIDE 45

Share ownership

III

45 Half-year Report January-June 2019
slide-46
SLIDE 46

YIT’s shareholders

Shareholder Shares % of share capital 1. Tercero Invest AB 24,125,000 11.43 2. Varma Mutual Pension Insurance Company 15,945,975 7.55 3. PNT Group Oy 15,296,799 7.25 4. Conficap Invest Oy 8,886,302 4.21 5. Pentti Heikki Oskari Estate 8,146,215 3.86 6. Ilmarinen Mutual Pension Insurance Company 5,610,818 2.66 7. Forstén Noora Eva Johanna 5,115,529 2.42 8. Herlin Antti 4,710,180 2.23 9. Elo Mutual Pension Insurance Company 3,916,587 1.86 10. Pentti Lauri Olli Samuel 3,398,845 1.61 Ten largest total 95,152,250 45.07 Nominee registered shares 24,277,400 11.50 Other shareholders 91,670,203 43.43% Total 211,099,853 100.00% MAJOR SHAREHOLDERS ON JUNE 30, 2019 46 NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE-REGISTERED AND NON-FINNISH OWNERSHIP, JUNE 30, 2019 32,476 36,547 36,064 43,752 44,312 41,944 40,016 43,619 46,704 46,224 45,477 37.9% 32.2% 34.8% 33.8% 29.3% 26.3% 29.5% 16.0% 13.8% 13.6% 14.3% 12/2010 12/2011 12/2012 12/2013 12/2014 12/2015 12/2016 12/2017 12/2018 3/2019 6/2019 Number of shareholders Nominee-registered and non-Finnish ownership, % of share capital Half-year report January-June 2019
slide-47
SLIDE 47

General economic and construction indicators

IV

47 Half-year Report January-June 2019
slide-48
SLIDE 48

General economic and construction indicators

GDP GROWTH IN YIT’S OPERATING COUNTRIES, % UNEMPLOYMENT RATE IN YIT’S OPERATING COUNTRIES, % 0% 1% 2% 3% 4% 5% Finland Sweden Norway Estonia Latvia Lithuania The Czech Republic Slovakia Poland Russia 2017 2018 2019F 2020F 5 10 15 20 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E 2023E 2024E Finland Sweden Norway Estonia Latvia Lithuania The Czech Republic Slovakia Poland Russia Sources: GDP growth: Bloomberg consensus Julne 2019; Unemployment: IMF, Construction cost index: Statistics Finland; Construction confidence: Confederation of Finnish Industries EK 48 CONSTRUCTION CONFIDENCE IN FINLAND (balance)
  • 80
  • 60
  • 40
  • 20
20 40 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 CONSTRUCTION COST INDEX IN FINLAND (index 2005=100) 95.00 100.00 105.00 110.00 115.00 120.00 125.00 130.00 135.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total index Labour Materials Services Half-year Report January-June 2019
slide-49
SLIDE 49

Housing indicators

V

49 Half-year Report January-June 2019
slide-50
SLIDE 50 Group

Operating environment for housing in Q2

50 CONFIDENCE INDICATORS IN FINLAND CONSUMER CONFIDENCE IN CEE COUNTRIES HOUSING LOANS AND AVERAGE INTEREST RATE IN RUSSIA (RUB billion, %) Sources: Statistics Finland and Confederation of Finnish Industries, EK; European Commission; Central Bank of Russia
  • In Finland, consumer demand was on a good
level, supply on a high level.
  • Residential demand of private investors
remained at a low level.
  • Consumer demand was brisk in all CEE
countries.
  • Due to increased construction volume,
shortage of resources caused cost pressure.
  • In Russia, consumers were cautious with their
apartment buying decisions.
  • Demand and prices remained stable.
  • The changes of the housing sales legislation
that came into force in the beginning of July caused uncertainty in the residential market.
  • 40.0
  • 30.0
  • 20.0
  • 10.0
0.0 10.0 20.0 30.0 40.0 2013 2014 2015 2016 2017 2018 2019 Consumer Manufacturing Construction Services Retail trade
  • 40
  • 30
  • 20
  • 10
10 2013 2014 2015 2016 2017 2018 2019 Estonia Latvia Lithuania The Czech Republic Slovakia Poland 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 2013 2014 2015 2016 2017 2018 2019 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Housing loans, left axis Average interest rate of new loans, right axis Half-year Report January-June 2019
slide-51
SLIDE 51 Finland

Start-ups expected to decrease in 2020

RESIDENTIAL START-UPS (units) CONSUMERS’ VIEWS ON ECONOMIC SITUATION IN 1 YEAR’S TIME (balance) 16,696 11,868 14,102 21,048 21,193 20,070 19,661 18,500 20,400 23,100 28,300 35,200 37,300 29,900 15,337 11,493 9,283 12,477 11,614 9,772 8,117 6,700 7,600 7,100 7,400 7,600 7,200 7,100 32,033 23,361 23,385 33,525 32,807 29,842 27,778 25,200 28,000 30,200 35,700 42,800 44,500 37,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F Blocks of flats and terraced houses Single family houses and other 90 95 100 105 110 115 120 125 130 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Finland Capital region Rest of Finland PRICES OF NEW DWELLINGS (index 2010=100) VOLUME OF NEW MORTGAGES AND AVERAGE INTEREST RATE (EUR million, %)
  • 30.0
  • 20.0
  • 10.0
0.0 10.0 20.0 30.0 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 Sources: Residential start-ups: 2006-2013 Statistics Finland; 2015 – 2020F Euroconstruct, November 2018; Consumer confidence and Residential prices: Statistics Finland; Loans and Interest rates: Bank of Finland 2 4 6 8 10 12 14 16 500 1,000 1,500 2,000 2,500 3,000 3,500 New drawdowns of housing loans, left axis Average interest rate of new housing loans, right axis 51 Own economy Finland’s economy Half-year Report January-June 2019
slide-52
SLIDE 52 Finland

Construction indicators

UNSOLD COMPLETED UNITS, RESIDENTIAL DEVELOPMENT PROJECTS (units) RESIDENTIAL BUILDING PERMITS, START-UPS AND COMPLETIONS (million ,m3) Sources: Unsold completed units, Residential building permits, Start-ups and completions: Confederation of Finnish Construction Industries RT May 2019; Prices of old apartments in Finland: Statistics Finland 52 95 97 99 101 103 105 107 109 2015 2016 2017 2018 2019 Finland Capital region Rest of Finland PRICES OF OLD APARTMENTS IN FINLAND (index 2015=100) Units Half-year Report January-June 2019
slide-53
SLIDE 53 CEE

Operating environment in CEE

53 Sources: National Central Banks, Eurostat HOUSE PRICE INDEX, NEW DWELLINGS IN CEE COUNTRIES (2015=100) AVERAGE INTEREST RATE OF MORTGAGES IN CEE COUNTRIES (%) 60 70 80 90 100 110 120 130 140 2013 2014 2015 2016 2017 2018 Estonia Latvia Lithuania The Czech Republic Slovakia Poland 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2013 2014 2015 2016 2017 2018 2019 Half-year Report January-June 2019
slide-54
SLIDE 54 5,400 700 1,251 1,879 2,329 2,933 4,059 5,179 4,023 5,100 4,200 4,800 4,000 3,000 3,815 3,342 3,597 4,691 6,118 7,524 7,018 7,100 7,000 6,700 9,400 3,700 5,066 5,221 5,926 7,624 10,177 12,703 11,041 12,200 11,200 11,500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F Block of flats 1+2 Family houses Baltic Countries

Residential construction expected to level off

RESIDENTIAL COMPLETIONS IN ESTONIA (UNITS) RESIDENTIAL COMPLETIONS IN LATVIA (UNITS) RESIDENTIAL COMPLETIONS IN LITHUANIA (UNITS) NEW RESIDENTIAL CONSTRUCTION VOLUME (EUR M at 2017 prices, excl. taxes) Source: Forecon, December 2018 54 2,000 1,500 1,208 1,120 1,113 1,780 2,699 3,221 4,307 4,600 4,700 4,000 1,000 800 710 870 966 976 1,270 1,511 1,583 1,700 1,900 1,600 3,000 2,300 1,918 1,990 2,079 2,756 3,969 4,732 5,890 6,300 6,600 5,600 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F Block of flats 1+2 Family houses 2,400 400 1,640 716 861 1,239 1,106 1,066 1,155 1,400 1,500 1,600 1,800 1,500 1,022 1,371 1,376 1,392 1,136 1,134 1,117 1,300 1,700 1,500 4,200 1,900 2,662 2,087 2,237 2,631 2,242 2,200 2,272 2,700 3,200 3,100 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F Block of flats 1+2 Family houses 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2015 2016 2017 2018E 2019F 2020F Estonia Latvia Lithuania Half-year Report January-June 2019
slide-55
SLIDE 55 53,100 71,600 71,700 62,100 54,700 73,400 89,200 90,300 111,500 122,900 125,000 110,000 115,000 89,800 86,500 90,500 79,700 72,700 74,700 79,200 83,600 94,500 99,000 105,000 100,000 105,000 142,900 158,100162,200 141,800 127,400 148,100 168,400173,900 206,000 221,900 230,000 210,000220,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F Block of flats 1+2 Family houses The Czech Republic, Slovakia and Poland

Start-ups forecasted to grow in the Czech Republic

RESIDENTIAL START-UPS IN THE CZECH REPUBLIC (UNITS) RESIDENTIAL START-UPS IN SLOVAKIA (UNITS) RESIDENTIAL START-UPS IN POLAND (UNITS) NEW RESIDENTIAL CONSTRUCTION VOLUME (EUR MILLION at 2018 prices) Source: Euroconstruct, November 2018 55 16,600 9,800 8,600 7,800 8,400 10,700 11,400 10,000 11,500 12,500 13,100 13,400 14,700 20,700 18,400 18,900 16,000 13,700 13,700 15,000 17,200 20,000 20,600 19,800 19,700 21,900 37,300 28,200 27,500 23,800 22,100 24,400 26,400 27,200 31,500 33,100 32,900 33,100 36,600 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F Block of flats 1+2 Family houses 9,200 6,600 3,300 4,000 5,500 6,200 8,500 8,400 5,800 7,000 7,300 6,800 6,600 11,100 9,600 9,400 9,100 9,200 9,600 11,100 13,000 14,100 15,000 15,700 16,000 15,700 20,300 16,200 12,700 13,100 14,700 15,800 19,600 21,400 19,900 22,000 23,000 22,800 22,300 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F Block of flats 1+2 Family houses 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2015 2016 2017 2018 2019F 2020F 2021F Czech Republic Slovakia Poland Half-year Report January-June 2019
slide-56
SLIDE 56 Russia

EUR/RUB exchange rate and housing indicators

NEW RESIDENTIAL CONSTRUCTION VOLUMES (EUR billion*) CONSUMER CONFIDENCE Sources: EUR/RUB exchange rate: Bloomberg; New residential construction volume: Forecon, July 2018; Consumer confidence: Bloomberg **Average 12/1998-12/2018 56 10 20 30 40 50 60 2015 2016 2017 2018 2019E 2020F 2021F *At 2018 prices, excluding taxes. 1 EUR = 74.041 roubles
  • 40
  • 35
  • 30
  • 25
  • 20
  • 15
  • 10
  • 5
3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 3/19 Consumer confidence Long-term average** 35 45 55 65 75 85 95 2013 2014 2015 2016 2017 2018 2019 EUR/RUB EXCHANGE RATE Half-year Report January-June 2019
slide-57
SLIDE 57

Business premises and infrastructure indicators

VI

57 Half-year Report January-June 2019
slide-58
SLIDE 58 Group

Operating environment for business premises and infrastructure projects in Q2

58
  • The good market in Finland continued to
support public and private investments. The volume of construction on a high level.
  • The rental levels remained on a good level in
Finland and in the Baltic countries.
  • In Sweden and Norway, the infrastructure market
remained strong, and there are several major infra projects and industrial investments ongoing or planned in both countries.
  • In Finland, the infrastructure construction outlook
has improved following the new government policy and the additional state budget approved in June. VOLUME OF NEW CONSTRUCTION IN FINLAND (index 2010=100) INFRASTRUCTURE MARKET (index 2015=100) BRENT OIL PRICE DEVELOPMENT (index 2015=100) Sources: Statistics Finland, Euroconstruct, November 2018, Bloomberg 50 70 90 110 130 150 170 2013 2014 2015 2016 2017 2018 2019 Commercial and office premises Public service premises Industrial and warehouse 60 80 100 120 140 160 180 2015 2016 2017 2018 2019F 2020F 2021F Finland Norway Sweden The Baltic countries 20 40 60 80 100 120 140 160 180 Brent oil Half-year Report January-June 2019
  • In the Baltic countries and in Slovakia,
investor demand for business premises was good.
slide-59
SLIDE 59 Infrastructure and business premises

Operating environment

59 Sources: Euroconstruct June 2019, Civil engineering investment volume and renovation: Confederation of Finnish Construction Industries RT April 2019, Retail trade; European commision TRANSPORT INFRASTRUCTURE, ROADS (EUR million at 2018 prices) CIVIL ENGINEERING INVESTMENT VOLUME IN FINLAND 3,000 6,000 9,000 2015 2016 2017 2018 2019F 2020F 2021F Finland Norway Sweden RENOVATION AND MODERNISATION OF BUILDING CONSTRUCTION IN FINLAND
  • 20
  • 10
10 20 30 40 50 2013 2014 2015 2016 2017 2018 2019 Estonia Latvia Lithuania Slovakia RETAIL TRADE CONFIDENCE IN BALTIC COUNTRIES AND SLOVAKIA Index 2010=100
  • M. € at 2000 prices
Non-residential buildings Residential buildings Half-year Report January-June 2019
slide-60
SLIDE 60 Finland, Baltic countries and Slovakia

Non-residential construction volumes

NEW NON-RESIDENTIAL CONSTRUCTION VOLUMES (index 2015=100) NEW NON-RESIDENTIAL CONSTRUCTION IN FINLAND (EUR million at 2018 prices) NEW NON-RESIDENTIAL CONSTRUCTION IN BALTIC COUNTRIES (EUR million at 2017 prices) ) NEW NON-RESIDENTIAL CONSTRUCTION IN SLOVAKIA (EUR million at 2017 prices) Sources: Euroconstruct, June 2019 and Forecon, June 2019 60 40 60 80 100 120 140 160 180 200 2015 2016 2017 2018 2019F 2020F 2021F Finland Estonia Latvia Lithuania Slovakia 200 400 600 800 1 000 1 200 1 400 1 600 2015 2016 2017 2018 2019F 2020F 2021F Office buildings Commercial buildings Industrial buildings 200 400 600 800 1,000 1,200 2015 2016 2017 2018E 2019F 2020F Estonia Latvia Lithuania 100 200 300 400 500 600 2015 2016 2017 2018E 2019F 2020F Office buildings Commercial buildings Industrial buildings Half-year Report January-June 2019
slide-61
SLIDE 61 Finland

Yields and transaction volumes in Finland

PRIME YIELDS IN THE HELSINKI METROPOLITAN AREA (%) OFFICE YIELS IN THE HELSINKI METROPOLITAN AREA, (%) Source: Catella Market Indicator, Spring 2019 PRIME YIELDS IN GROWTH CENTRES, (%) TRANSACTION VOLUME IN FINLAND, DENMARK AND SWEDEN, (EUR bn) Half-year Report January-June 2019 61
slide-62
SLIDE 62 Baltic countries

Yields expected to decrease slightly

Source: Newsec Property Outlook, Spring 2019 62 PRIME OFFICE YIELDS IN BALTIC COUNTRIES (%) PRIME RETAIL YIELDS IN BALTIC COUNTRIES (%) PRIME RETAIL RENTS IN BALTIC COUNTRIES (%, EUR/sqm) PRIME OFFICE RENTS IN BALTIC COUNTRIES (%, EUR/sq.m) Half-year Report January-June 2019
slide-63
SLIDE 63

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 by the following limitations. This presentation is being furnished to you solely for your information on a confidential basis and may not be reproduced, redistributed or passed on, in whole or in part, to any other person. This presentation does not constitute or form part of and should not be construed as, an offer to sell, or the solicitation or invitation of any offer to buy, acquire or subscribe for, securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investments decision whatsoever. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither the Company nor any of its respective affiliates, advisors or representatives nor any other person shall have any liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Each person must rely on their own examination and analysis of the Company and the transactions discussed in this presentation, including the merits and risks involved. This presentation includes “forward-looking statements”. These statements contain the words "anticipate", “will”, "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The Company cautions you that forward-looking statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if the Company's financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. Neither the Company nor any other person undertakes any obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation. 63 Half-year Report January-June 2019
slide-64
SLIDE 64