Adjusted operating profit margin improved from 2.8% to 4.0% in 2021. Finalised project portfolio clean-up and strengthened order book build a solid foundation for the future.
Housing Finland and CEE, adjusted operating profit at EUR 17 million (16).
Negatively impacted by the write-downs
Operational performance improved.
A lower number of completed apartments compared to the corresponding period.
Sales prices and mix developed favourably.
Housing Russia, adjusted operating profit at EUR 26 million (27).
The corresponding period was positively impacted by the change in revenue recognition of EUR 5 million, as well as a plot sale of EUR 5 million.
Operationally, profitability improved year-on-year due to improved margins and overall efficiency.
Business Premises, adjusted operating profit at EUR 10 (-44).
Infrastructure, adjusted operating profit at EUR 9 million (13).
Profitability was negatively impacted by margin reductions of EUR 37 million, as Infrastructure strategy and projects were thoroughly analysed, and certain legacy projects were reassessed.
The sale of Lestijärvi wind park had a positive impact of EUR 43 million on full-year adjusted operating profit.
Partnership Properties, adjusted operating profit at EUR 1 million (5).
The write-downs in certain non-strategic assets impacted negatively to adjusted operating profit.
The corresponding period was negatively impacted by the fair value change of EUR 14 million of the Mall of Tripla investment.
Net interest-bearing debt decreased to record-low EUR 303 million (628).
Gearing remained below strategic target level at 30% (68).
Plot reserve stood at EUR 748 million (812) at the end of the year enabling building of 29,000 new homes.
Strong order book of EUR 4,042 million (3,528).
Strong residential sales continued throughout the year. Number of unsold completed apartments at a low level.
Combined lost time injury frequency decreased to 8.9 (9.6).
In Housing Finland and CEE, completions of consumer apartments are expected to decrease compared to 2021. Housing Russia segment’s solid underlying performance is estimated to continue but earnings are expected to be impacted by the lower number of ongoing projects. In Business Premises, operational performance will continue to improve. Infrastructure will gradually improve, while still impacted by certain legacy low-margin projects. In Property Development, the project pipeline is healthy and attractive.
YIT expects its Group adjusted operating profit to be higher than in 2021 (2021: EUR 114 million).
Temporary shutdowns or slower progress on construction sites and delayed completions due to the COVID-19 pandemic could lead to the postponement of revenue and profit from one quarter or year to another.
YIT aims to transfer increased construction material costs into contracting and housing prices. As a consequence, YIT expects this to have only minor impact on its earnings during the year.
Supported by a strong balance sheet, YIT has increased its apartment start-ups in Finland and Central Eastern Europe. This is expected to tie up capital as the year progresses.
News conference on 4 February 2022
A news conference was arranged on Friday, 4 February 2022 at 10.00 a.m. Finnish time (EET, at 8.00 a.m. GMT). The results was presented by Markku Moilanen, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska. A recording of the webcast is available on the company’s web site at www.yitgroup.com/webcast.
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YIT Investor Relations team
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