MALL OF TRIPLA, HELSINKI, FINLAND Interim report January-September 2019 Kari Kauniskangas, President and CEO
Contents 1 Strategy review 2019 2 Group development in 3Q19 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 32 for additional information. Figures in brackets refer to restated pro forma figures of the comparison period unless otherwise stated. 2 Interim report January-September 2019
1 Strategy review 2019 3 Interim report January-September 2019 PANUKESKUS, FINLAND PURJEENTEKIJÄNKUJA, HELSINKI, FINLAND
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 - UPDATED STEPPING UP SUSTAINABILITY - NEW 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 - UPDATED 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 4 Interim report January-September 2019
YIT’s long -term sustainability targets Halving CO 2 emissions of own energy 1 consumption and self-developed projects by 2030* 2 Opportunity for carbon neutral use of buildings in self-developed projects Reporting project specific CO 2 emissions 3 from 2020 onwards in self-developed projects PURJEENTEKIJÄNKUJA, HELSINKI, FINLAND * Baseline 2019 5 Interim report January-September 2019
Structural changes and changes in reporting since June 2019 Continuing operations Discontinued operations Housing Business Infrastructure Partnership Discontinued Housing Russia Other FI&CEE premises projects properties operations Original structure of Original structure of Residential Original structure of Original structure of Paving in Finland Partnership Original structure of Infrastructure construction in St. Housing FI&CEE Business premises properties Other items projects Petersburg, Kazan, segment segment segment segment Yekaterinburg and Paving in Sweden Tyumen Road maintenance in Finland Paving in Norway Living services Paving in Denmark Excluded from adjusted Residential operating profit Paving in Russia construction in Moscow, Moscow Mineral aggregates region and Rostov- on-Don Contracting in Russia Former Paving segment 6 Interim report January-September 2019
3Q19 2 Group development in 7 Interim report January-September 2019 7 HELSINGIN MASTO, HELSINKI, FINLAND
Q3 in brief Good Successful performance consumer Weak quarter Mall of Tripla in in Business ready to sales in Infrastructure premises open Housing projects Finland +11.5 -6.9 +22% Oct 17, 2019 EUR million adjusted EBIT Grand opening Compared to 3Q18 EUR million adjusted EBIT (3Q18: EUR 5.9 million) (3Q18: EUR 8.7 million) 1 million visitors during first week (+46% compared to 2Q19) 8 Interim report January-September 2019
Strong order backlog, Group operating profit low as expected ADJUSTED OPERATING PROFIT, EUR million, % REVENUE PER SEGMENT, EUR million ORDER BACKLOG PER SEGMENT, EUR million 99.3 4,764 4,773 4,806 4,652* 4,400 4,302 4,286 1,128 8.8% 808 759 757 734 675 31.4 579 28.5 25.7 20.3 3.2% 4.3% 3.8% 2.7% -3.3% -9.7 -1.4% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 -19.0 Housing FIN & CEE Housing Russia Housing FIN & CEE Housing Russia 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Business premises Infra projects Business premises Infra projects Adjusted operating profit Partnership properties Partnership properties Adjusted operating profit % 9 Interim report January-September 2019
Performance by segment REVENUE PER SEGMENT, EUR million ADJUSTED OPERATING PROFIT PER SEGMENT, EUR million, % 50.0 40.0 Adjusted operating profit 3Q18 3Q19 5.6% 3Q18 3Q19 margin 3Q19 (3Q18) (9.8) 330 30.0 23.9 4.6% 280 (2.7) 20.0 252 252 250 14.0 244 0.5% 11.5 (-14.0) 8.7 215 5.9 230 211 10.0 3.1 0.3 0.0 180 -0.2 -10.0 -6.9 -7.8 130 -2.7% -20.0 (4.1) 80 56 53 -30.0 30 -40.0 Housing FIN & Housing Russia Business Infrastructure Partnership -20 -50.0 CEE premises projects properties Housing FIN & Housing Russia Business Infrastructure Partnership CEE premises projects properties 10 Interim report January-September 2019
Synergies and integration costs CUMULATIVE INTEGRATION COSTS 2 , EUR million CUMULATIVE SYNERGIES, EUR million 50 MAIN SOURCES OF SYNERGIES Measures done EBIT impact 2019 share 60 External Automatisation 40 services 48 48 Harmonisation 35 46 46 45 Overlaps 40 30 40 27 36 34 25 23 22 17 15 25 IT 20 19 6 20 19 19 19 19 10 Premises 0 0 1 Actual Actual Actual Actual Target Actual Actual Actual Actual Estimate 2018 1Q19 2Q19 3Q19 2020 2018 1Q19 2Q19 3Q19 2020 Additional synergy benefits expected from refinancing 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 . 11 Interim report January-September 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 12 Interim report January-September 2019
3 Segment reviews 13 Interim report January-September 2019 HENRIKSDAL WASTEWATER TREATMENT PLANT, STOCKHOLM, SWEDEN
Housing Finland and CEE Start-ups and consumer sales increased, completions decreased Number of start-ups accelerated year-on-year in Finland and CEE • COMPLETED APARTMENTS, units Finland 907 (690), CEE 590 (150) • Consumer sales increased in Finland and continued good in CEE • 1,938 • Finland 598 (2Q19: 488) 2,000 300% 643 • CEE in total 332, incl. 83 fund sales (2Q19: 343 incl. 107 fund sales) 1,702 1,800 • Lower profitability due to small number of completions in Finland 250% 307 1,600 1,450 1,415 Additionally a few negative and positive non-recurring items in reported • 1,400 123 and comparison period 499 200% 1,395 1,327 1,134 1,295 1,200 • Number of unsold completed apartments at end of period 162 Declined in Finland: 396 (2Q19: 447) 1,080 • 1,000 150% 841 972 916 Still on low level in CEE: 111 (2Q19: 64) • 800 260 92% 88% 87% 100% 81% 79% EUR million 3Q19 3Q18 77% 75% 600 reported pro forma, 581 restated 400 50% Revenue 251.8 244.2 200 Adjusted operating profit 14.0 23.9 0 0% (5.6%) (9.8%) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1 Order backlog 1,761.6 1,767.1* Finland CEE countries of which for consumers Capital employed 714.1 571.7* 1 Includes projects in the CEE sold to YCE housing I fund that are reported in the Partnership properties segment 14 * Restated reported Interim report January-September 2019
Housing Russia Profitability returned to positive Adjusted operating profit slightly positive EUR 0.3 million (-7.8) • COMPLETED APARTMENTS, units • One project commissioned earlier than expected Additionally, 70 apartments sold but registration postponed to • 2400 Q4 due to internal merger and Law 214 implementation 2,042 Number of unsold completed apartments, 546, reduced • 979 year-on-year (722) 1900 Changes announced in June being implemented • • Contracting unit and Rostov-on-Don operations ramped down 1400 Number of employees reduced • 945 720 EUR million 3Q19 3Q18 900 460 699 reported pro forma, restated 180 487 Revenue 52.7 55.8 274 400 221 288 410 343 Adjusted operating profit 0.3 -7.8 266 245 233 0 197 (0.5%) (-14.0%) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 -100 Order backlog 425.5 428.2* St Petersburg Russian regions Moscow area Capital employed 288.3 332.7* * Restated reported 15 Interim report January-September 2019
Recommend
More recommend
