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- Quarter highlights
- 3/31/2022
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IR Newsletter - Quarter highlights Q1/2022
The first quarter of 2022 is now behind, and it’s time to summarise the quarter in anticipation of the publication of YIT’s interim report.
Key discussion points of the quarter
The most discussed topics with investors during the first quarter were the Ukrainian crisis, the accelerated review of the company´s operations in Russia, availability of construction materials and workforce, and the outlook for the year 2022.
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The geopolitical situation changed dramatically over the first quarter as a result of Russia´s military attack on Ukraine. YIT responded to the crisis by speeding up the strategic review of the company´s operations in Russia. Simultaneously YIT decided not to invest in plots or start up new apartments in Russia for the time being. Further, YIT also decided that it no longer imports construction materials from Russia.
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YIT’s construction material procurement from Russia has been limited and included mainly timber products, steel, and glass. While these purchases can be replaced by alternative materials and sources, YIT estimates that the crisis will have an impact on certain construction material prices globally.
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Although YIT´s workforce availability hasn’t been meaningfully impacted by the war in Ukraine yet, YIT could be indirectly affected. For example, YIT procures prefabricated elements from subcontractors located in Baltic countries, who have employed Ukrainian citizens.
Selected recent news
Group news
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Type |
Project / Event |
Link to release |
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Ukraine |
YIT donates EUR 100,000 to help the victims of the war in Ukraine |
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AGM |
YIT Corporation’s Board of Directors decided the composition of its committees |
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AGM |
Resolutions passed at the Annual General Meeting of YIT Corporation |
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Finance |
YIT extends the maturity of a EUR 50 million term loan by one year |
|
|
Russia |
YIT’s statement on its businesses in Russia |
|
|
AGM |
Discussion event for shareholders on YIT’s events and financial statements in 2021 |
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Governance |
Change in the YIT management team: Katja Ahlstedt appointed as Executive Vice President, Human Resources and member of the Group management team |
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Finance |
YIT’s Annual Review for 2021 published |
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AGM |
Notice convening YIT Corporation's Annual General Meeting |
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Finance |
YIT’s Financial statements release 2021 |
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AGM |
Proposals of the Shareholders’ Nomination Board to the Annual General Meeting |
Segment news
|
Segment |
Project / Event |
Value |
Timing |
Link to release |
|
Property Development |
Ukrainian relief coordination centre gets premises in Vallila |
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Housing |
YIT has bought two plots in Tapiola, Espoo |
The planning of the projects has started |
The aim is to start the construction before the end of the year |
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Housing |
YIT to start the development of Tampere Travel and Service Centre (Tampereen Asemakeskus) with Finnpark |
The current project agreement concerns the development of the design solutions and the functional and commercial concept of Asemakeskus (Finnpark area) |
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|
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Business Premises |
YIT to build a school in Vääksy in the municipality of Asikkala using the life cycle model |
Approximately EUR 28 million |
To the order book in Q1/22 |
Other releases can be found in our webpage.
Silent call
YIT’s Q1 silent call for analysts was held on Wed 30 March. CFO Tuomas Mäkipeska went through the highlights of the quarter followed by Q&A session. They key topics in the Q&A were:
Q: When will the last apartments under construction in Russia be finished?
A: We basically have three major projects there, and all three of them are almost ready. The projects will be finished during April, May, and June respectively.
Q: Can you say something about the pre-sale ratios in these three projects?
A: The ratios are on the same level as they have been on a longer term.
Q: How self-financed are YIT´s operations in Russia?
A: During March, the operations have been pretty much self-funded with very limited cross-border transactions.
Q: Have you seen any changes in demand due to the current geopolitical situation?
A: So far, we haven't seen any major impacts on either consumer or investor demand. We will monitor the situation closely, and if the situation prolongs, we could see an impact on demand.
Q: How will the growth investments in Central and Eastern Europe be impacted?
A: Currently we are continuing the investments in line with our strategy. That said, we are evaluating the impact of the geopolitical situation on those markets as we speak. If there are major changes, we´ll adjust the speed and schedule of our investments accordingly.
Q: Have you seen disruptions in construction material supply to construction sites?
A: We are constantly monitoring the situation, but so far, we haven't seen any major impacts.
Q: Have you been impacted by the higher input costs?
A: No major impacts so far.
Q: Have you adjusted your tendering based on high uncertainties?
A: We´ve priced in cost inflation and additional risk buffers to our new tenders.
Q: Have you seen any need to further strengthen your balance sheet?
A: Currently, we don’t see any need to strengthen our balance sheet further.
In case you missed the silent call, you can find the podcast recording on our website under Other materials.
Earnings release
YIT’s Q1 Interim report will be published on Friday, 29 April around 9 a.m. (Finnish time).
The news conference will be held on the same day at 10 a.m. (Finnish time).
Materials will be available on our website
If you have any questions, please don’t hesitate to contact us. We are happy to help you!
YIT Investor Relations team
investorrelations@yit.fi
Please find our contact information here.
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