Quarter highlights Q1/2023
Key discussion points of the quarter
The most discussed topics with investors and analysts during the first quarter of 2023 were the current market headwinds in Housing and YIT’s transformation program launched in February.
We have collected below a list of the most prevalent questions we received during the quarter.
Q: What is the demand outlook for the Housing segment?
A: We expect the demand outlook for Housing to remain muted in the short term. The market environment is burdened by the low level of general consumer confidence, which has been slow to improve, as well as the higher interest rates and the uncertain economic outlook.
Q: What’s the impact of the market headwinds on your new apartment project startups?
A: We have taken a prudent approach to new start-ups, and we have also slowed down our plot investments.
Q: During the quarter, YIT launched a transformation program. How is the program progressing?
A: In February 2023, we launched a transformation program to improve our performance and competitiveness. The goal of the program is to generate inflation-adjusted run-rate cost savings of at least EUR 40 million by the end of 2024. More than half of the planned run-rate cost savings are expected to be achieved already during 2023.
On 31 March 2023, we published an update on our progress:
- Effective from 1 April 2023, YIT’s organizational structure will consist of three customer-focused, agile business segments: Housing, Business Premises and Infrastructure. The operations in the former Property Development segment have been allocated to the other segments and Group Functions.
- The change negotiations in Finland have been completed, and YIT has entered into a strategic partnership to strengthen its IT services.
- Actions taken to date will result in annualised cost savings of EUR 15–17 million by the end of 2024.
YIT will arrange a silent call for Analyst on Friday 31 March and a recording of the call will be published later on the same day on our website. The silent period starts on 1 April and lasts until publication of our Q1 Interim Report 2023.
YIT’s Interim Report for January-March 2023 will be published on Wednesday, 3 May 2023 around 9 a.m. EEST (around 6 a.m. GMT). A news conference will be arranged on the same day at 10:00 a.m. EEST (7:00 a.m. GMT). The results will be presented by Heikki Vuorenmaa, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska. The news conference will be held as a live webcast that can be followed on the company's web site at www.yitgroup.com/webcast. A recording of the webcast will be available at the same address later that day.
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