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 position and key ratios 6 Outlook and guidance 7 Appendices
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. REDING TOWER 2 2 Half-year Report January-June 2019 BRATISLAVA, SLOVAKIA 1
Key strategic steps in Q2/2019
3 Half-year Report January-June 2019 Nordic paving and mineral aggregates YIT to sell Nordic paving and mineral aggregates businesses to Peab
SCOPE OF THE TRANSACTION FINANCIAL IMPACT NOT INCLUDED IN THE TRANSACTION Paving and mineral aggregates Closing of the deal Jan 1, 2020 Paving in Russia businesses in Finland, Sweden, (est.). Strategic options to divest or close the Norway and Denmark. Transaction price EUR 280 million. business are under evaluation. Respective assets and Capital gain EUR 40 million. Road maintenance in Finland personnel working with the Cash flow impact approx. EUR 240 Will be reported under Infrastructure divisions. million. projects segment within YIT. Paving in the Baltic countries Continues in Infrastructure projects segment as today.
4 Half-year Report January-June 2019 Nordic paving and mineral aggregates Deal rationale
ACCELERATE STRATEGY • Capital allocation to urban development projects 1 EXECUTION and other non-cyclical businesses, like services
SHARPEN CUSTOMER AND • Unified business portfolio with common core 2 OPERATIONAL FOCUS • Reduced operating model complexity
• Positive impact to the group financial position and FINANCIALLY SOLID reduced earnings volatility during the year 3 TRANSACTION • Several years’ paving’s expected cash flow in one go
RESPONSIBLE INDUSTRIAL • Paving business is in the core of Peab’s business 4 BUYER portfolio
5 Half-year Report January-June 2019 Russia Significant steps to reduce capital and enhance profitability
EVROPEISKI RESIDENTIAL COMPLEX YEGORIEVSK, RUSSIA
SCOPE OF THE ACTIONS FINANCIAL IMPACT FOCUS IN THE FUTURE, NOT INCLUDED IN THE ACTIONS Discontinue residential construction in Expected positive net cash flow impact EUR ~50 million 2019–2021. Moscow, the Moscow region and Rostov- Residential construction business in St. on-Don. Petersburg, Kazan, Yekaterinburg and Tyumen. One-time write-off EUR 35 million on Closing contracting unit. balance sheet values and provision of Living services. EUR 9 million. Exit the paving business either by closing down or by selling the Expected release of capital employed operations. EUR ~100 million 2019-2021.
6 Half-year Report January-June 2019 YIT Strategy 2019-2021 - Performance through cycles Profitable and financially stable YIT
STRATEGIC PRIORITIESSTRATEGIC PRIORITIES CORNERSTONESCORNERSTONES OF OF SUCCESSSUCCESS
TOP PERFORMANCE
• Synergies EUR 46-50 million URBAN DEVELOPMENT • Focus on productivity improvement
Focus in self-developed, longer Sustainable CAPITAL EFFICIENCY urban value chain and negotiation based development projects • Leaner operating model in Russia • Annual free cashflow EUR +150 million
NON-CYCLICAL BUSINESSES SUCCESS WITH CUSTOMERS AND PARTNERS PARTNERSHIP PAVING • Improving customer experience and NPS PROPERTIES • Deeper partnerships, higher value, more speed Annual EBIT EUR >100 million from NON-CYCLICAL OFFERING: non-cyclical businesses from 2019 on SERVICES, RENOVATION, PAVING, OWNERSHIP Unchanged. The share of paving HAPPY PEOPLE business is estimated to be replaced with other businesses within 3 years. • Common culture, open and involving way to lead • Most preferred employer in the field
7 Half-year Report January-June 2019 2
Group development in Q2/2019
8 Half-year Report January-June 2019 KONEPAJA AREA DEVELOPMENT PROJECT HELSINKI, FINLAND Recent structural changes and changes in reporting
Continuing operations Discontinued operations
Housing Business Infrastructure Partnership Discontinued Housing Russia Other FI&CEE premises projects properties operations
Original structure of Original structure of Original structure of Residential Original structure of Infrastructure Partnership Original structure of Paving in Finland Housing FI&CEE construction in St. Business premises projects properties Other items segment Petersburg, Kazan, segment segment segment Yekaterinburg and Paving in Sweden Tyumen Road maintenance Living services in Finland Paving in Norway
Excluded from adjusted Paving in Denmark operating profit. Residential construction in Paving in Russia Moscow, Moscow Mineral aggregates region and Rostov- on-Don
Contracting in Russia
Former Paving segment
9 Half-year Report January-June 2019 Q2 in brief
Good Strong institutional Strategic profitability investor and steps in Strong order in Housing stable Paving1 and backlog Finland and consumer Russia CEE sales in Finland ~300 4.7 10.2% 1,481 EUR million positive cash EUR billion order backlog Adjusted EBIT Sold apartments in flow impact 2019-2021 on June 30 margin Finland (Jun 30, 2018: 4.8) (Jun 30, 2018: 9.6%) (Q2/2018: 1,018) 1 Occured after the review period, on July 4, 2019
10 Half-year Report January-June 2019 Improved operating profit and strong order backlog
ADJUSTED OPERATING PROFIT, EUR million, % REVENUE PER SEGMENT, EUR million ORDER BACKLOG PER SEGMENT, EUR million
99.3 4,806 4,773 4,652* 1,128 4,400 4,286 4,302
8.8% 759 757 734 675 31.4 28.5 579 20.3
4.3% 2.7% 3.8%
-3.3% -9.7 -1.4% Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 -19.0 Housing FIN & CEE Housing Russia Housing FIN & CEE Housing Russia Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Business premises Infra projects Business premises Infra projects Adjusted operating profit Partnership properties Partnership properties Adjusted operating profit % *Order backlog of discontinued operations excluded. Q2/19 discontinued operations order backlog EUR 300 million (296).
11 Half-year Report January-June 2019 Performance by segment in Q2
REVENUE PER SEGMENT, EUR million ADJUSTED OPERATING PROFIT PER SEGMENT, EUR million, %
50.0 10.2%
40.0 (9.6) Q2/2018 Q2/2019 Q2/2018 Q2/2019 330 317 30.4 29.1 Adjusted operating profit% 30.0 286 in Q2/19 (Q2/18)
280 20.0 2.1% 247 (2.5) 230 212 10.0 5.3 5.2 193 2.8 176 0.0 180 -0.2 -2.7 -0.8 -0.6 -10.0 -7.3 1.5% 130 (-0.5) -7.8% -20.0 (-13.7) 80
53 -30.0 35
30 -40.0
-20 Housing FIN & Housing Russia Business Infrastructure Partnership -50.0 CEE premises projects properties Housing FIN & Housing Russia Business Infrastructure Partnership CEE premises projects properties
12 Half-year Report January-June 2019 Synergies and integration costs
CUMULATIVE SYNERGIES INTEGRATION COSTS 2
Measures done EBIT impact MAIN SOURCES OF SYNERGIES Cumulative integration costs 60 60 External Automati 1 services sation 46-50 46-50 46 Harmoni Overlaps 45 sation 40 40 40 40 34 15 25 IT 25 22 23 19 6 20 20 19 19 19
Premises 0 0 Actual (2018) Actual Actual Target (2020) Actual (2018) Actual Actual Estimate (Q1/2019) (Q2/2019) (Q1/2019) (Q2/2019) (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
13 Half-year Report January-June 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 Unchanged outlook compared to the past Improved outlook compared to the past 12 months’ development 12 months’ development 12 months’ development
14 Half-year Report January-June 2019 4 1
FOR 5 Sustainability targets set for 2019 2 6
3
STAKEHOLDERS SIGNIFICANCE
SIGNIFICANCE OF IMPACTS • YIT’s sustainability targets for 2019 based on the materiality matrix to guide YIT’S SUSTAINABILITY TOPICS AND TARGETS YIT’s sustainability work.
1. 2. • Targets approved by Group Management • Circular economy potential • Responsible business principles • Sustainable urban development KPI’s • Fighting corruption and transparent Team and published as part of actions Sustainability Review 2018 in May. • Full list of YIT’s sustainability targets in YIT Sustainability Review 2018. 3. 4. • Preventive occupational safety targets • Positive work athmosphere • Reactive occupational safety targets • Supervisory work • Human rights
5. 6. • Audits and harmonising procurement • Energy and material efficiency processes • Carbon calculations • Increasing transparency • Recycling and reuse of materials
15 Half-year Report January-June 2019 3
Segment reviews
16 Half-year Report January-June 2019 HENRIKSDAL WASTE WATER TREATMENT PLANT STOCKHOLM, SWEDEN Housing Finland and CEE Healthy profitability
• Profitability on healthy level 10.2% (9.6%) COMPLETED APARTMENTS, units • Strong institutional sales of 993 apartments.
• Consumer demand stable in Finland and good in CEE: 2,000 1,938 300% 643 • Finland, sold apartments 488. 1,800 1,702
250% • CEE, sold apartments in total 343 (incl. 107 fund sales). 1,600 307 1,415 1,450 • Number of unsold completed units at the end of the period 1,400 123 499 1,395 200% was in Finland 447 (03/19: 216) and 64 in CEE countries 1,327 1,200 1,134 1,295 (03/19: 73). 162 1,000 1,080 150% 972 EUR million Q2/2019 Q2/2018 800 916 reported pro forma, 92% 88% 87% 81% 100% restated 600 75% 79%
Revenue 286 317 400 50%
Adjusted operating profit 29.1 30.4 200 (10.2%) (9.6%)
0 0% Order backlog 1,649 1,774* Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 1 Capital employed 709 518* Finland CEE countries of which for consumers * Reported 1 Includes projects in the CEE sold to YCE housing I fund that is reported in the Partnership properties segment
17 Half-year Report January-June 2019 Housing Russia Significant steps to reduce capital and enhance profitability
• Focus in the future on residential construction in St. Petersburg, COMPLETED APARTMENTS, units Kazan, Yekaterinburg and Tyumen and living services. • Discontinue residential construction in Moscow, Moscow region and 2400 Rostov-on-Don as well as contracting. • Expected positive net cash flow impact EUR ~50 million 2019– 2,042 720 2021. 1900 • One-time write-off EUR 26 million on balance sheet values and provision of EUR 8 million. 1400
• Slight positive adjusted EBIT impact in Q2 and negative in full 979 year.
EUR million Q2/2019 Q2/2018 900 reported pro forma, 699 restated 274 487
Revenue 35 53 400 266 180 410 343 Adjusted operating profit -2.7 -7.3 233 0 245 221 (-7.8%) (-13.7%)
-100 Order backlog 430 453* Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 St Petersburg Moscow area Russian regions Capital employed 280 353*
* Reported 18 Half-year Report January-June 2019 Business premises Major projects added to order backlog
• Revenue grew and operating profit was stable. ORDER BACKLOG BY PROJECT TYPE, EUR million • Several major projects added to backlog of orders during Q2, e.g. Vaasa Central Hospital, Hamburger Börs and multiple life-cycle projects. 1,400 1,327 1,286 • Announced Mall of Tripla opening day, Oct 17, 2019. 735 1,230 1,200 782 • Occupancy rates in Mall of Tripla (94%) and Tripla offices 636
(89%) high at the end of the period. 1,000
800
EUR million Q2/2019 Q2/2018 600 52 reported pro forma, 75 restated 540 519 103 400 Revenue 247 212 400
Adjusted operating profit 5.2 5.3 200 (2.1%) (2.5%) Order backlog 1,286 1,589* 0 Q4/18 Q1/19 Q2/19 Capital employed 77 104* Self developed Negotiated contracting Others 1 * Reported 1 Includes tender-based projects as well as lifecycle projects and their service agreements.
19 Half-year Report January-June 2019 Infrastructure projects Positive development in order backlog and margins of new projects
• Road maintenance business in Finland transferred to Infrastructure ORDER BACKLOG AND ILLUSTRATIVE SHARE OF ORDERS, EUR million projects from Paving. 1400 • Revenue increased due to higher year-on-year volumes.
• Operating profit increased due to improved margin quality of new 1200 contracts.
• Blominmäki wastewater treatment plant contract model changed to 1000 cost-plus-fee to avoid risks for cost overrun.
• Positive development in order backlog and margins of new projects 800 during the quarter. • Several big projects added to order backlog in Q2: e.g. Raide- 600 Jokeri light rail in Finland and Henriksdal’s wastewater tunnel. EUR million Q2/2019 Q2/2018 reported pro forma, 400 restated
Revenue 193 176 200
Adjusted operating profit 2.8 -0.8
(1.5%) (-0.5%) 0 Order backlog 1,270 929* Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Share of pre merger orders (infra) Share of post merger orders (infra) Capital employed 78 72* Share of road maintenance orders
* Restated reported 20 Half-year Report January-June 2019 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.
EUR million Q2/2019 Q2/2018 reported pro forma, restated Revenue 0.1
Adjusted operating profit -0.2 -0.6
Capital employed 150 143* KEILANIEMI DEVELOPMENT PROJECT * Reported ESPOO, FINLAND
21 Half-year Report January-June 2019 Partnership properties project portfolio and estimated timelines
TOTAL INVEST- YIT’S YIT’S EQUITY MENT CAPACITY OWNERSHIP INVESTMENT
E18 Hamina-Vaalimaa motorway 235 M€ 20% 5 M€
Mall of Tripla 600 M€ 38.75% 117 M€
Keilaniemi area 800 M€ 50% 8 M€2
Telia Campus 200-500 M€
Otava property 100-200 M€
Campus Maria1 300 M€
1 Trigoni Helsinki High Rise 500+500 M€
1 Helsinki Garden 500-600 M€
ÅB Lunastustontti I Ky plot fund 100 M€ 20% 10 M€
YCE Housing I project development fund 100 M€ 40% 15 M€
Rental apartment joint venture 100 M€ 49% 11 M€
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 Construction subject to required decisions 2 Planning and zoning period Estimated constuction period Income for Partnership properties segment Illustration of potential exit period YIT’s current equity investment in Regenero
22 Half-year Report January-June 2019 4
Discontinued operations
23 Half-year Report January-June 2019 REMIXER METHOD SOUTHERN FINLAND 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. OPERATING PROFIT AND ORDER BACKLOG, EUR 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 296 300 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).
EUR million Q2/2019 Q2/2018 reported pro forma, restated -0.7 Order backlog -3.6 Revenue 149 149 Operating profit Order backlog Operating profit -3.6 -0.7 (-2.4%) (-0.5%) Order backlog 300 296 Q2/2018 Q2/2019 Operating profit
24 Half-year Report January-June 2019 5
Financial position and key ratios
25 Half-year Report January-June 2019 TIMBER CAMPUS PUDASJÄRVI, FINLAND 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).
CASH FLOW OF PLOT INVESTMENTS AND INVESTMENTS TO ASSOCIATED OPERATING CASH FLOW AFTER INVESTMENTS, EUR million COMPANIES AND JOINT VENTURES, EUR million
205 -6 -7 -16 -16 130 -26 -34 -46 -7 -9 -3 -5 -33 -51 -3 -153 -21
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2018 2019 Cash flow from investments to associated companies and joint ventures
Comparison figures are restated reported figures. Cash flow from plot investments
26 Half-year Report January-June 2019 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.
ADJUSTED NET INTEREST-BEARING DEBT1, EUR million MATURITY STRUCTURE, NOMINAL AMOUNTS2, EUR million
48 49 286 205 65 61 69 264 113 159 153 150 129 109 768 734 672 563 556
9 10
Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 2024- 2018 2019 Net debt Cash and cash equivalents Interest-bearing receivables
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 27 Half-year Report January-June 2019 Adjusted financial key ratios
• Strategic gearing target 30-50% estimated to be reached ahead of schedule thanks to recent corporate transactions. Impact materialising in the beginning of 2020.
ADJUSTED NET DEBT1 / ADJUSTED EBITDA2 ADJUSTED GEARING1, % ADJUSTED EQUITY RATIO1, % (multiple, x)
79.8 75.5 73.4 70.7 39.1 38.1 37.0 34.8 53.6 56.2 33.9 33.9 5.6 4.8 4.8
3.5 3.2 3.0
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2018 2019 2018 2019 2018 2019
1 Excluding IFRS 16 impact in 2019 figures. 2018 figures are reported figures. 2 2018 figures are pro forma figures.
28 Half-year Report January-June 2019 Capital employed by segment
CAPITAL EMPLOYED BY SEGMENT, EUR million
1,902 1,880 238 147 1,651
323 449 359
145 149 150 87 77 78 45 65 77 307 314 280
756 679 708
Jan 1, 2019 3/2019 6/2019 Housing FIN & CEE Housing Russia Business premises Infrastructure projects Partnership properties Other 1 Reconciliation 1 Reconciliation relates to discontinued operations which are not part of segment reporting.
29 Half-year Report January-June 2019 6
Outlook and guidance
30 Half-year Report January-June 2019 PURJEENTEKIJÄNKUJA RESIDENTIAL APARTMENT PROJECT LAUTTASAARI, FINLAND Estimated completions of consumer apartment projects under construction
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.
Q3/2019 FY 2018 FY 2019 Q1/2019 Q2/2019 Estimate Q4/2019 Q1/2020 Q2/2020 Actual Estimate Actual Actual (Act. Q3/18) Estimate Estimate Estimate Later
Finland 1 3,657 2,734 858 1,076 300 (690) 500 400 500 1,337
CEE 2 1,427 1,507 0 307 400 (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.
31 Half-year Report January-June 2019 Guidance for 2019
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.
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.
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.
32 Half-year Report January-June 2019 Additional information
Ilkka Salonen YIT’S CAPITAL MARKETS DAY Chief Financial Officer (CFO) On +358 45 359 4434 September [email protected] 26, 2019 in Helsinki, Finland Hanna Jaakkola Vice President, Investor Relations +358 40 566 6070 [email protected]
Follow YIT on Twitter @YITInvestors MARIA 01 HELSINKI, FINLAND
33 Half-year Report January-June 2019 7
Appendices
34 Half-year Report January-June 2019 TRIPLA PROJECT HELSINKI, FINLAND Presentation of financial information in Q2
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. 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. YIT’s HEADQUARTERS 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. HELSINKI, FINLAND
35 Half-year Report January-June 2019 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 I
Key figures and additional information about financial position
37 Half-year Report January-June 2019 Key figures
Reported Pro forma, restated Pro forma, restated Pro forma, restated EUR million Change Reported 1–6/19 Change 4-6/19 4-6/18 1–6/18 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 3 Order backlog 4,652.1 4,772.83 -3% 4,652.1 4,772.83 -3% 4,285.6 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 1 Profit for the review period -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
38 Half-year Report January-June 2019 1 Attributable to equity holders of the parent company 2 Reported 3 Restated reported Balanced debt portfolio
BONDS INTEREST BEARING DEBT PORTFOLIO2 AT THE END OF 6/2019, EUR 846 MILLION Maturity Initial amount Issue date Coupon July 6, 20191 EUR 100 million June 26, 2014 7.375% Bonds, 41% June 11, 2021 EUR 100 million June 11, 2018 3.150% Housing corporation loans, 24% June 11, 2023 EUR 150 million June 11, 2018 4.250% Loans from financial institutions, 15% RCF Commercial papers, 9% Pension loans, 6% Maturity Initial amount Issue date Status Other interest-bearing debt, 4% August 2021 EUR 300 million February 2018 Undrawn
YIT’S GENERALLY USED COVENANTS INTEREST RATE DISTRIBUTION OF INTEREST PORTFOLIO2 AT END OF 6/2019 • 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
39 Half-year Report January-June 2019 Foreign exchange rates in Q2
Principles of managing currency risks EUR/RUB exchange rates 1–6/2019 1–6/2018 1-12/2018 • Sales and project costs typically in same currency, all foreign currency items hedged Average rate 73.7181 71.9852 74.0687 → no transaction impact End of period 71.5975 73.1582 79.7153 • 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
40 Half-year Report January-June 2019 II
Housing sales and start-ups
41 Half-year Report January-June 2019 Housing Finland Sales and start-ups in Q2
SOLD APARTMENTS, units APARTMENT START-UPS, units 1,637 1500 1500 1,481 1,372 1080 993
1300 1300 939 1,218 1,093 404 1100 1100 1,018 144 476 876 900 863 900 949 793 815 792 182 353 348 814 690 313 700 348 700 694 243 644
500 500 542 510 480 467 433 447 444 401 300 300
100 100
-100 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 -100 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19
To consumers To investors (funds) To consumers To investors (funds)
42 Half-year Report January-June 2019 Housing CEE Sales and start-ups in Q2
SOLD APARTMENTS, units 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 572 to consumers (Q2/2018: 141) 141
433 141 449 395 358 357 431 113 113 98 345 319 292 282 259 245 241 236
172 150
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 To consumers To investors (funds) To consumers To investors (funds)
43 Half-year Report January-June 2019 Housing Russia Sales and start-ups in Q2
SOLD APARTMENTS, units APARTMENT START-UPS, units
14 00 200% 14 00
1,184 180% 12 00 12 00 1,281 1,232
160%
10 00 10 00
140% 892 827 923 120%
779 80 0 80 0 722 725 815
100% 724
60 0 60 0
80% 571
60% 40 0
40 0
40% 49% 45% 47% 45% 48% 20 0 20 0 42%
20%
0
0 0% Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Sold apartments Financed with mortgages (%)
44 Half-year Report January-June 2019 III
Share ownership
45 Half-year Report January-June 2019 YIT’s shareholders
NUMBER OF SHAREHOLDERS AND SHARE OF NOMINEE-REGISTERED MAJOR SHAREHOLDERS ON JUNE 30, 2019 AND NON-FINNISH OWNERSHIP, JUNE 30, 2019 % of share 46,704 Shareholder Shares capital 46,224 45,477 43,752 44,312 43,619 1. Tercero Invest AB 24,125,000 11.43 41,944 40,016 2. Varma Mutual Pension Insurance Company 15,945,975 7.55 36,547 36,064 3. PNT Group Oy 15,296,799 7.25 32,476 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 37.9% 5,115,529 2.42 34.8% 33.8% 7. Forstén Noora Eva Johanna 32.2% 29.3% 29.5% 8. Herlin Antti 4,710,180 2.23 26.3%
Elo Mutual Pension Insurance Company 3,916,587 1.86 9. 16.0% 13.8% 13.6% 14.3% 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 12/2010 12/2011 12/2012 12/2013 12/2014 12/2015 12/2016 12/2017 12/2018 3/2019 6/2019 Other shareholders 91,670,203 43.43% Number of shareholders Total 211,099,853 100.00% Nominee-registered and non-Finnish ownership, % of share capital
46 Half-year report January-June 2019 IV
General economic and construction indicators
47 Half-year Report January-June 2019 General economic and construction indicators
GDP GROWTH IN YIT’S OPERATING COUNTRIES, % UNEMPLOYMENT RATE IN YIT’S OPERATING COUNTRIES, %
5% 20
4% 15
3% 10 2%
5 1%
0% 0 Finland Sweden Norway Estonia Latvia Lithuania The Czech Slovakia Poland Russia 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E 2023E 2024E Republic Finland Sweden Norway Estonia 2017 2018 2019F 2020F Latvia Lithuania The Czech Republic Slovakia Poland Russia CONSTRUCTION COST INDEX IN FINLAND (index 2005=100) CONSTRUCTION CONFIDENCE IN FINLAND (balance) 135.00 40 130.00 20 125.00
120.00 0
115.00 -20 110.00 -40 105.00
100.00 -60
95.00 -80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total index Labour Materials Services
Sources: GDP growth: Bloomberg consensus Julne 2019; Unemployment: IMF, Construction cost index: Statistics Finland; Construction confidence: Confederation of Finnish Industries EK 48 Half-year Report January-June 2019 V
Housing indicators
49 Half-year Report January-June 2019 Group Operating environment for housing in Q2
• In Finland, consumer demand was on a good • Consumer demand was brisk in all CEE • In Russia, consumers were cautious with their level, supply on a high level. countries. apartment buying decisions. • Residential demand of private investors • Due to increased construction volume, • Demand and prices remained stable. shortage of resources caused cost pressure. remained at a low level. • The changes of the housing sales legislation that came into force in the beginning of July caused uncertainty in the residential market. HOUSING LOANS AND AVERAGE INTEREST CONFIDENCE INDICATORS IN FINLAND CONSUMER CONFIDENCE IN CEE COUNTRIES RATE IN RUSSIA (RUB billion, %) 40.0 10 8,000 16.0 30.0 7,000 14.0 0 20.0 6,000 12.0
10.0 -10 5,000 10.0 0.0 4,000 8.0 -10.0 -20 3,000 6.0 -20.0 2,000 4.0 -30 -30.0 1,000 2.0 -40.0 -40 0 0.0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019
Consumer Manufacturing Construction Estonia Latvia Housing loans, left axis Lithuania The Czech Republic Average interest rate of new loans, right axis Services Retail trade Slovakia Poland
Sources: Statistics Finland and Confederation of Finnish Industries, EK; European Commission; Central Bank of Russia 50 Half-year Report January-June 2019 Finland Start-ups expected to decrease in 2020
RESIDENTIAL START-UPS (units) CONSUMERS’ VIEWS ON ECONOMIC SITUATION IN 1 YEAR’S TIME (balance) 44,500 42,800 30.0 7,200 37,000 35,700 7,600 Own economy 32,033 33,525 32,807 20.0 29,842 30,200 7,100 27,778 28,000 7,400 25,200 10.0 23,361 23,385 12,477 11,614 7,100 15,337 9,772 8,117 7,600 6,700 0.0 11,493 9,283 35,200 37,300 28,300 29,900 -10.0 21,193 23,100 21,048 20,070 19,661 18,500 20,400 16,696 -20.0 Finland’s economy 11,868 14,102
-30.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Blocks of flats and terraced houses Single family houses and other PRICES OF NEW DWELLINGS (index 2010=100) VOLUME OF NEW MORTGAGES AND AVERAGE INTEREST RATE (EUR million, %)
130 3,500 16
125 3,000 14 12 120 2,500 115 10 2,000 110 8 1,500 6 105 1,000 4 100 500 2 95 0 0 90 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Finland Capital region Rest of Finland New drawdowns of housing loans, left axis Average interest rate of new housing loans, right axis
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 51 Half-year Report January-June 2019 Finland Construction indicators
UNSOLD COMPLETED UNITS, RESIDENTIAL DEVELOPMENT PROJECTS (units) RESIDENTIAL BUILDING PERMITS, START-UPS AND COMPLETIONS (million ,m3) Units
PRICES OF OLD APARTMENTS IN FINLAND (index 2015=100)
109 107 105 103 101 99 97 95 2015 2016 2017 2018 2019
Finland Capital region Rest of Finland
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 Half-year Report January-June 2019 CEE Operating environment in CEE
AVERAGE INTEREST RATE OF MORTGAGES IN CEE COUNTRIES (%) 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2013 2014 2015 2016 2017 2018 2019
HOUSE PRICE INDEX, NEW DWELLINGS IN CEE COUNTRIES (2015=100) 140 130 120 110 100 90 80 70 60 2013 2014 2015 2016 2017 2018
Estonia Latvia Lithuania The Czech Republic Slovakia Poland
Sources: National Central Banks, Eurostat 53 Half-year Report January-June 2019 Baltic Countries Residential construction expected to level off
RESIDENTIAL COMPLETIONS IN ESTONIA (UNITS) RESIDENTIAL COMPLETIONS IN LATVIA (UNITS) 6,300 6,600 5,890 5,600 1,700 1,900 4,732 1,583 4,200 1,600 3,969 1,511 3,200 3,100 3,000 1,800 2,700 2,756 1,270 2,662 2,631 2,237 2,242 2,200 2,272 2,300 2,087 1,700 1,500 1,000 1,918 1,990 2,079 1,900 1,022 976 4,307 4,600 4,700 1,392 1,300 800 4,000 1,136 1,134 1,117 710 870 966 3,221 1,371 1,376 2,699 2,400 1,500 2,000 1,780 1,640 1,500 1,239 1,400 1,500 1,600 1,208 1,120 1,113 861 1,106 1,066 1,155 400 716 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F
Block of flats 1+2 Family houses Block of flats 1+2 Family houses
RESIDENTIAL COMPLETIONS IN LITHUANIA (UNITS) NEW RESIDENTIAL CONSTRUCTION VOLUME (EUR M at 2017 prices, excl. taxes)
1,800 12,703 12,200 1,600 11,041 11,200 11,500 10,177 1,400 9,400 1,200 7,624 7,524 7,100 7,000 6,700 1,000 4,000 5,926 6,118 7,018 5,066 5,221 800 3,700 4,691 3,597 600 3,815 3,342 5,400 5,179 5,100 3,000 4,059 4,023 4,200 4,800 400 2,933 1,879 2,329 700 1,251 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F 0 2015 2016 2017 2018E 2019F 2020F Block of flats 1+2 Family houses Estonia Latvia Lithuania Source: Forecon, December 2018
54 Half-year Report January-June 2019 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)
37,300 36,600 33,100 32,900 33,100 23,000 22,800 31,500 21,400 22,000 22,300 28,200 20,300 19,900 27,500 26,400 27,200 19,600 20,700 23,800 24,400 22,100 21,900 16,200 15,800 20,600 19,800 19,700 14,700 20,000 11,100 12,700 13,100 13,000 15,000 15,700 16,000 15,700 18,400 11,100 18,900 13,700 15,000 17,200 14,100 16,000 9,600 13,700 9,200 9,600 9,400 9,100 16,600 14,700 10,700 11,400 11,500 12,500 13,100 13,400 9,200 8,500 8,400 9,800 8,600 7,800 8,400 10,000 6,600 5,500 6,200 5,800 7,000 7,300 6,800 6,600 3,300 4,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F Block of flats 1+2 Family houses Block of flats 1+2 Family houses RESIDENTIAL START-UPS IN POLAND (UNITS) NEW RESIDENTIAL CONSTRUCTION VOLUME (EUR MILLION at 2018 prices) 230,000 221,900 220,000 14,000 206,000 210,000 12,000 168,400 173,900 158,100 162,200 105,000 99,000 105,000 10,000 142,900 141,800 148,100 94,500 100,000 127,400 79,200 83,600 8,000 86,500 90,500 74,700 79,700 6,000 89,800 72,700 4,000 111,500 122,900 125,000 110,000 115,000 89,200 90,300 71,600 71,700 73,400 53,100 62,100 54,700 2,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F 2015 2016 2017 2018 2019F 2020F 2021F
Block of flats 1+2 Family houses Czech Republic Slovakia Poland
Source: Euroconstruct, November 2018
55 Half-year Report January-June 2019 Russia EUR/RUB exchange rate and housing indicators
EUR/RUB EXCHANGE RATE NEW RESIDENTIAL CONSTRUCTION VOLUMES (EUR billion*) 60
50 95 40
30 85 20
75 10
0 2015 2016 2017 2018 2019E 2020F 2021F 65 *At 2018 prices, excluding taxes. 1 EUR = 74.041 roubles CONSUMER CONFIDENCE 55 0 -5 45 -10 -15 -20 35 -25 2013 2014 2015 2016 2017 2018 2019 -30 -35 -40 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** Sources: EUR/RUB exchange rate: Bloomberg; New residential construction volume: Forecon, July 2018; Consumer confidence: Bloomberg **Average 12/1998-12/2018
56 Half-year Report January-June 2019 VI
Business premises and infrastructure indicators
57 Half-year Report January-June 2019 Group Operating environment for business premises and infrastructure projects in Q2
• The good market in Finland continued to • In the Baltic countries and in Slovakia, • In Sweden and Norway, the infrastructure market support public and private investments. The investor demand for business premises remained strong, and there are several major infra volume of construction on a high level. was good. projects and industrial investments ongoing or planned in both countries. • The rental levels remained on a good level in Finland and in the Baltic 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 INFRASTRUCTURE MARKET BRENT OIL PRICE DEVELOPMENT (index 2010=100) (index 2015=100) (index 2015=100) 170 180 180 160 150 160 140 130 140 120 100 110 120 80 90 100 60
70 80 40 20 50 60 0 2013 2014 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019F 2020F 2021F Commercial and office premises Finland Norway Public service premises Brent oil Industrial and warehouse Sweden The Baltic countries Sources: Statistics Finland, Euroconstruct, November 2018, Bloomberg 58 Half-year Report January-June 2019 Infrastructure and business premises Operating environment
TRANSPORT INFRASTRUCTURE, ROADS (EUR million at 2018 prices) CIVIL ENGINEERING INVESTMENT VOLUME IN FINLAND
9,000
6,000
3,000 Index Index 2010=100
0 2015 2016 2017 2018 2019F 2020F 2021F
Finland Norway Sweden
RETAIL TRADE CONFIDENCE IN BALTIC COUNTRIES AND SLOVAKIA RENOVATION AND MODERNISATION OF BUILDING CONSTRUCTION IN FINLAND
50
40
30
20
10
0 M. € at M. € at 2000 prices -10
-20 2013 2014 2015 2016 2017 2018 2019
Non-residential Residential buildings Estonia Latvia Lithuania Slovakia buildings
Sources: Euroconstruct June 2019, Civil engineering investment volume and renovation: Confederation of Finnish Construction Industries RT April 2019, Retail trade; European commision 59 Half-year Report January-June 2019 Finland, Baltic countries and Slovakia Non-residential construction volumes
NEW NON-RESIDENTIAL CONSTRUCTION VOLUMES NEW NON-RESIDENTIAL CONSTRUCTION IN FINLAND (index 2015=100) (EUR million at 2018 prices) 200 1 600 180 1 400 160 1 200 140 1 000 120 800
100 600
80 400
60 200 0 40 2015 2016 2017 2018 2019F 2020F 2021F 2015 2016 2017 2018 2019F 2020F 2021F Finland Estonia Latvia Lithuania Slovakia Office buildings Commercial buildings Industrial buildings NEW NON-RESIDENTIAL CONSTRUCTION IN BALTIC COUNTRIES NEW NON-RESIDENTIAL CONSTRUCTION IN SLOVAKIA (EUR million at 2017 prices) ) (EUR million at 2017 prices)
1,200 600
1,000 500
800 400
600 300
400 200
200 100
0 0 2015 2016 2017 2018E 2019F 2020F 2015 2016 2017 2018E 2019F 2020F
Estonia Latvia Lithuania Office buildings Commercial buildings Industrial buildings Sources: Euroconstruct, June 2019 and Forecon, June 2019 60 Half-year Report January-June 2019 Finland Yields and transaction volumes in Finland PRIME YIELDS IN THE HELSINKI METROPOLITAN AREA (%) PRIME YIELDS IN GROWTH CENTRES, (%)
OFFICE YIELS IN THE HELSINKI METROPOLITAN AREA, (%) TRANSACTION VOLUME IN FINLAND, DENMARK AND SWEDEN, (EUR bn)
Source: Catella Market Indicator, Spring 2019 61 Half-year Report January-June 2019 Baltic countries Yields expected to decrease slightly
PRIME OFFICE YIELDS IN BALTIC COUNTRIES (%) PRIME OFFICE RENTS IN BALTIC COUNTRIES (%, EUR/sq.m)
PRIME RETAIL YIELDS IN BALTIC COUNTRIES (%) PRIME RETAIL RENTS IN BALTIC COUNTRIES (%, EUR/sqm)
Source: Newsec Property Outlook, Spring 2019 62 Half-year Report January-June 2019 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