Quarter highlights Q2/2022

Quarter highlights Q2/2022

On 30 May 2022, YIT announced that it had completed the sale of its businesses in Russia to Etalon Group PLC. With the completion, YIT withdraws from all operations in Russia. The sale allows YIT to fully focus on its strategy and core businesses.
During the second quarter, YIT announced an agreement with Nokia regarding the building of new facilities in Oulu, and the selling of YIT's share in an office property in Slovakia.
On 3 June 2022, YIT announced that it had agreed with lenders to extend the maturity of its committed revolving credit facility by one year to June 2025. The revolving credit facility is undrawn, and the extension of the loan maturity supports YIT's existing strong liquidity position.

Key discussion points of the quarter

The most discussed topics with investors and analysts during the second quarter of 2022 were the effects of the crisis in Ukraine on YIT, consumer behaviour, availability of construction materials, construction material cost inflation and YIT´s strategy.

We have collected below a list of the most prevalent questions we received during the quarter.

Q: What was the operating environment like during the quarter?
A: The geopolitical turmoil attributable to the crisis in Ukraine continued in the second quarter affecting the entire construction industry. Issues in the availability of certain construction materials continued, and some material prices continued to increase. General consumer confidence has also been impacted.

Q: Have you seen changes in consumer behaviour?
A: General consumer confidence is weakening, and consumers are showing signs of increased cautiousness due to growing macroeconomic uncertainty.

Q: Has there been disruptions in the availability of construction materials?
A: Challenges in the availability of certain materials have persisted. So far, we have been able find alternative materials and sources. Our long-standing relationships with the suppliers have benefitted us in this environment.

Q: The uptick in construction material costs has continued. How has it affected YIT?
A: So far, the impact hasn’t been material, but we will continue to monitor the situation. We aim to mitigate the effects by actively managing our customer relations, contracts, and procurement. We have proactive interaction and good co-operation with our clients.

Q: Has the changing operating environment affected YIT´s strategy or growth investments?
A: Our strategy is the right one in these rapidly changing market conditions. Our strong balance sheet gives us room for manoeuvre, and our actions to improve efficiency and reduce costs will help us to stay competitive, even if the market weakens. In our view, the mid- and long-term prospects remain positive, and we will continue our growth investments in Housing.

Silent period

YIT will arrange a silent call for Analyst on Wednesday 22 June and a recording of the call will be published later on the same day on our website. The silent period starts on 1 July and lasts until publication of our half-year report.

Earnings release

YIT’s Q2 half-year report will be published on Thursday, 28 July 2022 around 9 a.m. EET (around 7 a.m. GMT). A news conference will be arranged on the same day at 10:00 a.m. EET (8:00 a.m. GMT). The results will be presented by Markku Moilanen, 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.