cities Roadshow Lisbon March 9, 2017 yitgroup.com Hanna Jaakkola, - PowerPoint PPT Presentation

YIT – More life in sustainable cities Roadshow Lisbon March 9, 2017 yitgroup.com Hanna Jaakkola, VP, Investor Relations

Contents 1 YIT in brief 3 2 Strategy and business model 8 3 Latest highlights 14 4 Housing Finland and CEE 19 5 Housing Russia 29 6 Business Premises and Infrastructure35 7 Key financials 43 8 Looking ahead and conclusions 51 9 Why invest in YIT? 54 10 Appendices 58 YIT | 2 | Investor presentation, March 2017

1 YIT in brief Merenkulkijanranta residential area Helsinki, Finland

Over 100 years in Finland, over 50 in Russia, growing presence in CEE YIT becomes Allmänna Finland's No.1 Ingeniörsbyrån Entry to Expansion to construction Ab (AIB) Poland Operations the Baltics company establishes in Russia and CEE in office in begin construction Helsinki services 1980’s 2000’s 1912 1961 2015 1960’s 2006  1995 2013 YIT Demerger of Corporation Building Services: listed on the • Both companies large Stock enough to grow Today’s YIT started to Exchange independently form from 3 • Different strategies Investments companies: • and business models in land bank Perusyhtymä, Yleinen • Meaningful geographical and residential Insinööritoimisto Oy overlap only in Finland development in • and Insinööritoimisto Better management focus Russia Vesto Oy in separate companies YIT | 4 | Investor presentation, March 2017

A real estate developer and construction company with solid track record Revenue by segment*, EUR 1.8 bn Housing Finland and 41% 44% CEE Housing Russia Business Premises and Infrastructure 15% Adjusted operating profit by segment, EUR 80 million Business Premises 38 and Infrastructure Housing Russia 60 Housing Finland and CEE -2 Luokka 1 Revenue by geographical area 11% 15% Finland Russia The CEE countries 74% Figures based on segment reporting (POC) YIT | 5 | Investor presentation, March 2017 *%-shares excluding other items

Balanced business portfolio HOUSING FINLAND AND HOUSING RUSSIA BUSINESS PREMISES AND CEE INFRASTRUCTURE BUSINESS We construct and develop apartments We construct and develop apartments We build offices, shopping centres, care OPERATIONS and entire residential areas. and entire residential areas, and we facilities, roads, bridges, rail and metro operate in service and maintenance stations, harbours and more. We also businesses. operate in the area of road and street maintenance. OPERATING Finland, Estonia, Latvia, Lithuania, the Seven regions in Russia: Rostov-on- Business premises: Finland, Estonia, COUNTRIES Czech Republic, Slovakia, Poland Don, Yekaterinburg, Kazan, Moscow, Latvia, Lithuania, Slovakia Moscow region, St. Petersburg, Infra: Finland Tyumen CUSTOMERS Households, private and institutional Primarily households Businesses, the public sector and investors institutional investors Lemminkäinen, SRV, Skanska, Bonava, PIK, LSR, Etalon, SU-155, Lemminkäinen, SRV, Skanska, NCC, MAIN Lehto Group, Lapti, Merko Ehitus, local Lemminkäinen, local players in different Merko Ehitus, Destia, Kreate, Peab etc. COMPETITORS players in different countries cities YIT | 6 | Investor presentation, March 2017

Our vision – More life in sustainable cities OUR VISION More life in sustainable cities OUR GROWTH ENGINE Urban development involving partners OUR DNA Result- oriented project executor OUR MISSION OUR VALUES CARE A STEP AHEAD COOPERATION PERFORMANCE YIT | 7 | Investor presentation, March 2017

2 Strategy Konepaja residential area Helsinki, Finland

Revenue growth and healthy profitability through economic cycles Revenue development (EUR million) by business segment Business Premises and Infrastructure Housing Russia CAGR Housing Finland and CEE International Construction Services 5.7% Construction Services Finland Construction Services 1,929 1,841 1,800 1,793 1,716 1,660 1,632 1,631 1,573 1,448 1,399 1,384 600 1,296 689 599 489 1,143 797 483 487 1,112 616 471 356 828 743 474 266 496 268 1,329 1,227 1,149 1,144 1,102 1,028 656 727 778 728 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted operating profit (EBIT) development (EUR million) by business segment, excluding group costs 15.0% Business Premises and Infrastructure 12.3% Housing Russia 11.8% 13.0% Housing Finland and CEE 11.1% 11.0% International Construction Services Construction Services Finland 11.0% 9.2% 9.1% 9.1% 8.9% Construction Services 214 200 EBIT-% 7.8% 7.7% 9.0% 7.4% 7.4% 7.3% 171 167 158 80 6.3% 143 143 67 140 31 7.0% 121 5.4% 5.3% 4.6% 41 108 102 20 35 96 9 90 64 70 70 56 5.0% 61 55 23 38 133 134 11 117 112 108 82 66 64 3.0% 60 56 -18 -2 1.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note: Segment level figures (POC), i.e. sum of Construction Services related segment figures in YIT financial reporting and thus excluding effect of other items. YIT | 9 | Investor presentation, March 2017

Focus on reforming our operations Improve internal Provide Coach, encourage agility easy-to-use services and train people Reduce Build true Improve construction costs partnerships capital efficiency YIT | 10 | Investor presentation, March 2017

Renewed strategy for 2017 – 2019 More life in sustainable cities INNOVATOR ANNUAL GROWTH FOR LIVING 5 – 10% in Housing Solutions for urban living Living services e.g. affordable apartments Renovation services Performance Higher value-add for leap customers e.g. hybrids, big infra, alliances GROWTH INNOVATIVE PARTNER in Business Premises & Infrastructure YIT | 11 | Investor presentation, March 2017

We are making a difference • Proactive customer experience management CARE FOR • WOW service attitude CUSTOMERS • Digital customer journey • Strengthened long-term city development VISIONARY URBAN • Hybrid and area development DEVELOPMENT • Concepts • Latest knowledge and more diversity PASSIONATE • Empowered teams EXECUTION • Standardisation and pre-fabrication • Involving and encouraging people INSPIRING • Network excellence LEADERSHIP • Preferred employer YIT | 12 | Investor presentation, March 2017

Financial targets Long-term Target Outcome 2016 financial target level 5 – 10% annually on 8%, Revenue growth average 9% at comp. fx Return on investment 15% 4.7% Sufficient for Operating cash flow after investments EUR -43.1 million dividend payout Equity ratio 40% 35.1% 40 to 60% of Dividend payout 373.3%* (95.3%)** net profit for the period All figures according to segment reporting (POC) * The Board of Director’s proposal to Annual General Meeting **Calculated with adjusted EPS YIT | 13 | Investor presentation, March 2017

3 Latest highlights Vapo office Vantaa, Finland

Key messages in Q4/2016 • Exceptionally strong residential sales to consumers in new projects in Finland and the CEE countries • Good progress in ongoing projects and a solid order backlog in Business Premises and Infrastructure • Operating profit positive in Russia due to good sales and high number of completions • Despite the improvement, financial key ratios still on an unsatisfactory level UPM headquarters Helsinki, Finland YIT | 15 | Investor presentation, March 2017

Group: Revenue grew and profitability improved in Q4 • Revenue increased by 10% y-o-y, 9% at comparable exchange rates • Operating profit margin improved y-o-y in all segments • Order backlog remained stable q-o-q, share of sold backlog continued to increase Revenue and adjusted operating profit margin (EUR million, %) Order backlog (EUR million) 2015: EUR 1,651 million, 4.6% 2016: EUR 1,784 million, 4.5% -1% 10% 2,641 2,613 9.0 % 514 8.0 % 469 464 444 416 7.0 % 392 5.6% 375 56% 362 60% 6.0 % 4.5% 4.3% 4.3% 5.0 % 5.5% 3.6% 5.2% 3.3% 4.0 % 3.0 % 2.0 % 44% 40% 1.0 % 0.0 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 9/2016 12/2016 2015 2016 Unsold Sold Revenue Adjusted operating profit margin All figures according to segment reporting (POC) Note: The adjusted operating profit margin does not include material reorganisation costs, impairment or other items impacting comparability YIT | 16 | Investor presentation, March 2017

EBIT-bridge Q4/2015 – Q4/2016 • Positive profitability development in Housing Finland and CEE due to less capital release actions and shift in the sales mix Adjusted operating profit (EUR million), change Q4/2015 – Q4/2016: 72% 28.7 -0.1 1.3 2.3 1.4 1.9 0.2 5.7 16.6 -0.7 YIT Group Volume Profitability Volume Profitability Volume Profitability Other items FX-impact YIT Group Q4/2015 Q4/2016 Housing Finland and CEE Housing Russia Business Premises and Infrastructure YIT | 17 | Investor presentation, March 2017