Roadshow presentation March 2021 15 MINUTES’ More life in sustainable cities CITY
2 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND Table of contents
1. Strategy
2. 2020 results
3. Outlook and guidance
3 Roadshow presentation March 2021 KONEPAJA AREA, HELSINKI, FINLAND
1. Strategy
Strategy excecution towards sustainable urban development continues
4 Roadshow presentation March 2021 Megatrends driving growth and productivity
URBANISATION DIGITALISATION SUSTAINABILITY CHANGING DEMOGRAPHY • Urban development • Customer experience • Circular economy • Lack of people • Public transportation • Higher productivity • Carbon neutrality • Competition for talent • Complex projects • Utilisation of data • Subsidies and green • Aging people • Remote working • Platform economy & financing • Health and safety corporate-start-up • Re-vitalisation of urban cooperation areas
5 Roadshow presentation March 2021 More life in sustainable cities
A Improve offering and Strengthen pipeline for lifetime value of assets B growth • Differentiating services in SERVICES • Plot reserve in urban areas co-operation with partners • Partnerships and financing SustainableX • Competitive core products urban • Project development development capability
Grow assets under Focus on projects and ownership businesses based on our • Partnerships and strengths co-investments • Self-developed and • Large urban development projects competence-based projects • Housing portfolio • Performance and quality
6 Roadshow presentation March 2021 Examples of urban development project portfolio
ONGOING PROJECTS FUTURE PROJECTS
KEILANIEMENRANTA GARDEN HELSINKI MARIA 01 TRIGONI HIGH RISE ESPOO, FINLAND HELSINKI, FINLAND HELSINKI, FINLAND HELSINKI, FINLAND ~800 M€ ~600 M€ ~300 M€ ~500 + 500 M€ 2018-2023 -2026 -2023 -2027
JOKERI LIGHT RAIL TAMPERE LIGHT RAIL JOKERIKORTTELI CROWN BRIDGES HELSINKI, FINLAND TAMPERE, FINLAND HELSINKI, FINLAND HELSINKI, FINLAND ~300 M€ ~120 M€ ~300 M€ 2019-2022 2018-2022 -2025 -2028
7 Roadshow presentation March 2021 We are growing on our focus areas
TOTAL PLOT RESERVE, ORDER BOOK OF LIFE-CYCLE PROJECTS, € million € million
853 624 812
~580 ~390
~230
1 2018 2019 2020 2018 2019 2020 1 Excluding leased plots
8 Roadshow presentation March 2021 Group-wide cornerstones drive profitability and performance
Success with Top performance customers and partners
Stepping up Happy people sustainability
9 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND Customer satisfaction rate (NPS) developed favourably
NET PROMOTER SCORE
HOUSING FINLAND & CEE 51 50 62 (51)
HOUSING RUSSIA 60 (57)
2019 2020
10 Roadshow presentation March 2021 Strategic targets
ROCE Gearing >12% <50%
CO emissions Dividend per share 2 Growing -50% by 2030 vs. 2019
11 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND Dividend history
DIVIDEND PAYOUT RATIO AND DIVIDEND PER SHARE, € EFFECTIVE DIVIDEND YIELD, %
0.09 572%
6.7% 0.07 0.12 5.3% 4.2% 4.2% 3.9% 0.05 3.7% 145% 2.9% 68% 41% 59% 56% 0.03 0.38 0.28 0.01 0.25 0.27 0.22 0.22 0.18 1 0.14 -0.01
-5.00 -389% -0.03 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019
Annual dividend Additional dividend Payout ratio Effective dividend yield 1 Board of Director’s proposal to AGM. 12 Roadshow presentation March 2021 PILIAMIESTIS, KAUNAS, LITHUANIA Long-term environmental targets to mitigate climate change
CO2 emissions CO2 reporting
We will halve carbon We report the project-
dioxide emissions of our specific CO2 emissions own operations (incl. of our self-developed energy, waste and Projects starting from business flights) and 2020. -50% self-developed projects (incl. materials) This target helps us CO emissions by 2030 compared to increase our 2 2019. understanding of project by 2030 emissions and enables This target helps us fight us to explore climate change and opportunities for enable the reduction reducing emissions. of emissions for our customers.
Carbon neutrality CO2 reporting CARBON from 2020 NEUTRALITY We will enable carbon-neutral heating, cooling and hot water of our self-developed projects.
This target enables us to help our customers and the users of the properties reduce their carbon footprint.
13 Roadshow presentation March 2021 Occupational safety essential throughout the supply chain
LTIF, ROLLING 12 MONTHS Target of
16
<9 12 combined lost time injury frequency (LTIF) of 8 Target level YIT personnel and 4 subcontractors by 2021 0 Rolling 12 months
YIT personnel YIT personnel and subcontractors
14 Roadshow presentation March 2021 KONEPAJA, HELSINKI, FINLAND Ensuring employee wellbeing, equality and human rights
Personnel Employee commitment rate
in 2020 Women 24%
80% ~7,400 (77)
Men 76% #1 The ideal construction industry Employed over employer among students and 800 trainees in 2020 university educated professionals in the field of technology in Finland
15 Roadshow presentation March 2021 WORKERY WEST, HELSINKI, FINLAND Ensuring transparent actions and fighting corruption and grey economy
Good ESG governance: AA-rating YIT Code of Conduct (MSCI 2019) ~80% of personnel completed online training in 2020 YIT Ethical Channel in use
16 Roadshow presentation March 2021 HELSINKI-VANTAA AIRPORT, FINLAND 2. 2020 results
Balance sheet continued to strengthen in 2020
17 Roadshow presentation March 2021 Great progress in several areas in 2020
Strategy execution COVID-19: continued: Successful actions to business portfolio minimise impacts streamlined
21% Solid project portfolio decrease of CO2 emissions
18 Roadshow presentation March 2021 NAUJASIS SKANSENAS, VILNIUS, LITHUANIA Group development
REVENUE, € million ORDER BOOK, € million
4,286 4,131 3,392 3,528 3,201 3,069
2018 2019 2020 2018 2019 2020
19 Roadshow presentation March 2021 Financial performance disappointing
ADJUSTED OPERATING PROFIT, € million
Sales increased, Financial margins improved settlements -50 M€ Fair value changes, y-o-y impact -94 M€
2019 Housing Housing Business Infrastructure Partnership Other 2020 FIN&CEE RUS premises properties
20 Roadshow presentation March 2021 Continued plot investments for the future
OPERATING CASH FLOW AFTER INVESTMENTS, CASH FLOW OF INVESTMENTS, rolling 12 months, € million rolling 12 months, € million Total plot 336 reserve ~840 M€ at the end n/a of 2020 -153 -155
-34 -34 51 -187 n/a -189
2018 2019 2020 2018 2019 2020
Plots Associatedtotalcompanies and joint ventures 21 Roadshow presentation March 2021 Net debt decreasing
NET INTEREST-BEARING DEBT, € million EQUITY RATIO AND GEARING, %
862 81% 628 68% 563 54%
38% 34% 33%
1 2018 2019 2020 2018 2 2019 2020 Gearing Equity ratio 1 Excluding IFRS 16 lease liabilities, € 301 million. 2 Excluding IFRS 16. 22 Roadshow presentation March 2021 HELSINKI-VANTAA AIRPORT, FINLAND
3. Outlook & guidance
Performance expected to improve in 2021
23 Roadshow presentation March 2021 Market outlook is relatively stable with limited visibility
Business Partnership Housing premises Infrastructure properties
Finland
Russia
Baltic countries
Central European countries
Sweden
Q4/2020 market situation Q1/2021 market outlook Good Normal Weak Improving Stable Weakening
24 Roadshow presentation March 2021 Based on company’s own management estimates. Completions peaked in Q4, similar pattern expected in 2021
ESTIMATED COMPLETIONS OF CONSUMER APARTMENT PROJECTS UNDER CONSTRUCTION, units
In addition, 1,740 revenue from 1,654 apartments under construction recognised 1,500 over time (POC): 738 1,300 • 2,101 for investors • 4,302 in Russia 2,908 2,579 404 1,900 218 38 1,046 100 592 600 700 471 470 400 100 150 200 150 FY 2019 FY 2020 FY 2021 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 ACT ACT EST ACT ACT ACT ACT EST EST EST EST EST Finland CEE
25 Roadshow presentation March 2021 Guidance for 2021
• The fourth quarter is expected to be clearly the strongest. Group adjusted operating profit • Dependent on certain project completions and contract closings. to be • COVID-19: higher • temporary shutdowns or slower progress on sites and delayed than in 2020 completions could lead to postponement of profit (85 M€) • may lead to changes in market yields impacting fair values
26 Roadshow presentation March 2021 YIT’S HEADQUARTERS, HELSINKI, FINLAND Management agenda
SUCCESS WITH TOP PERFORMANCE CUSTOMERS AND PARTNERS Improve project Continue to expand management to drive digital services profitability
STEPPING UP SUSTAINABILITY HAPPY PEOPLE
Continue to develop Ensure health and climate action plan safety of our people
27 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND Additional information
YIT Investor Relations [email protected]
Tommi Järvenpää YIT’s Vice President, Investor Relations Q1 interim report +358 40 576 0288 [email protected] will be published on
Hanna Valonen 30 Apr Investor Relations Specialist
+358 400 846 556 Follow YIT IR [email protected] on Twitter
twitter.com/ YITInvestors
28 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND YIT’s HEADQUARTERS, HELSINKI, FINLAND
4. Appendices
I. Profitability 2018-2020
II. Debt structure
III. Strategic targets
IV. Market position
29 Roadshow presentation March 2021 I. Profitability weakened in 2020
ADJUSTED OPERATING PROFIT, € million AND PROFIT MARGIN, %
180 166 10.0% 160 9.0%
140 132 8.0% 7.0% 120 6.0% 100 4.9% 85 5.0% 80 4.1% 4.0% 60 2.8% 3.0%
40 2.0%
20 1.0%
0 0.0% 2018 2019 2020
30 Roadshow presentation March 2021 TRIPLA, HELSINKI, FINLAND II. Debt structure stable
INTEREST-BEARING DEBT PORTFOLIO, INTEREST RATE DISTRIBUTION OF € million INTEREST PORTFOLIO1
5% 22% 21% 39%
19% 61% 18%
15%
Bonds Commercial papers Housing corporation loans related to unsold apartments Fixed rate Floating rate Loans from financial institutions Lease liabilities 1 Excluding IFRS 16 lease liabilities, EUR 235 million Other interest-bearing debt
31 Roadshow presentation March 2021 Strategic targets III. Gearing improved, ROCE weakened
ROCE, % GEARING, %
81 >12 68 10 54 <50 6 5
// // 1 2 2018 2019 2020 Target 2018 2019 2020 Target 1 Pro forma, excluding IFRS 16 2 Excluding IFRS16
32 Roadshow presentation March 2021 Strategic targets III. Dividend proposal 0.14 € per share
EMISSION INTENSITY OF
DIVIDEND PER SHARE, € OWN OPERATIONS, tCO2e/M€
BASE YEAR 1 0.12 -21%
GROWING -50%
0.27 0.28
0.14 n/a // // 2 2018 2019 2020 Target 2018 2019 2020 Target 1 Additional dividend. 2 Board of Director’s proposal to AGM.
33 Roadshow presentation March 2021 IV. YIT has strong market position in urban development
SHARE OF TOTAL REVENUE IN 2020
BUILDING CONSTRUCTION CIVIL ENGINEERING ~14%
Housing Business premises Infrastructure projects ~22% ~2% ~1% ~4% ~7% ~1% ~2% ~12% ~4%
Source: Eurostat, company own estimate. ~1% Turnover data for building and civil engineering based on harmonized country- specific industry statistics collected by Eurostat. Only the comparable share of enterprises with more than 50 employees in the total turnover of the statistics has ~2% been taken into account. In the EU28, the share is on average 48% in the ~2% building construction industry and 71% in the civil engineering industry. Revenue data is based on confirmed figures collected by Eurostat and changes in output by country and industry in the Euroconstruct report. The calculated share of revenue has been compared to YIT's comparable revenue.
34 Roadshow presentation March 2021 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.
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35 Roadshow presentation March 2021