YIT restates financial information for 2022 and Q1/2023 reflecting the new organisational structure, and provides additional information on the Infrastructure segment
As previously communicated, YIT has simplified its organisational structure as part of its transformation program. The new organisation, effective from 1 April 2023, consists of three business segments: Housing, Business Premises, and Infrastructure. YIT will publish its Half-year Report 1–6/2023 based on the updated segment structure on 1 August 2023.
Key impacts of the new organisational structure
As part of the changes in the organisational structure, the operations in the former Property Development segment have been allocated to the other segments and Group Functions:
- Wind power development, previously reported under the Property Development segment, is now reported in the Infrastructure segment.
- Self-developed business premises projects, previously reported under the Property Development segment, are now reported in the Business Premises segment.
- Investments in associated companies and joint ventures, as well as equity investments, previously reported under the Property Development segment, have been allocated to the Housing, Business Premises and Infrastructure segments. YIT’s investment in Tripla Mall is now reported as part of the Business Premises segment.
YIT has restated financial information for 2022 and for the first quarter of 2023 to reflect the changes. The attached tables present the restated segment financial information for 2022 and for the first quarter of 2023.
Description of the segments under the new structure
The Housing segment’s business comprises the development and construction of apartments and entire residential areas. The segment also offers and develops different living services and concepts. The segment’s customers are private consumers and investors. Private consumers purchase apartments to use as their own home or for investment purposes, while investors, such as housing funds or joint ventures and associated companies, purchase an entire residential building or a large residential apartment portfolio.
YIT’s own housing investments, such as investments in housing joint ventures or associated companies, are reported under the segment. The segment has operations in Finland and Central Eastern Europe and seeks growth especially in the growing cities of Poland, the Czech Republic, and Slovakia, where it operates as a developer focusing on consumer sales.
The Business Premises segment engages in contracting of new construction and renovation projects for office, retail, sports, hotel, commercial, residential, logistics and industrial buildings as well as public buildings, such as hospitals, health and wellbeing centres, day care centres, schools, and multipurpose buildings. The Business Premises segment also carries out self-developed projects, as well as service periods for life cycle projects.
At the end of the first quarter of 2023, the segment’s order book amounted to EUR 1,313 million, of which EUR 328 million was service periods for life cycle projects. The segment has operations in Finland and Central Eastern Europe and seeks to operate with negative capital employed and generate stable cash flow. The segment’s capital employed amounted to EUR 297 million at the end of first quarter 2023, impacted primarily by the non-residential investments reported under the segment, including YIT’s investment in Tripla Mall.
The Infrastructure segment engages in, among others, railway and traffic route construction and maintenance, industrial and energy sector construction, bridge building and repairing, foundation construction and other earthworks, shoreline and water works construction, underground construction such as excavation and structural engineering, and water supply construction. YIT’s self-developed renewable energy projects, such as the wind power development portfolio and solar power development projects, are reported under the segment. The segment has operations in Finland and Sweden and seeks to operate with negative capital employed and generate stable cash flow.
The performance of YIT’s infrastructure operations in Sweden has been burdened by certain low-margin legacy projects. On 20 June 2023, YIT announced that it has initiated a strategic review regarding certain assets and operations, including, among others, its infrastructure operations in Sweden. In 2022, the revenue for the Infrastructure segment was EUR 539 million, of which the business in Finland amounted to EUR 412 million, and the business in Sweden to EUR 110 million. In 2022, the segment’s adjusted operating profit was EUR 4 million (0.7%), of which the business in Finland amounted to EUR 16 million (3.9%), and the business in Sweden to EUR -13 million (-11.5%).
For further information:
Samu Heikkilä, Investor Relations Manager, YIT Corporation, tel. +358 44 581 7979, email@example.com
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and a significant North European development and construction company. We develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, infrastructure for smooth mobility, and renewable energy solutions to benefit the climate. We employ around 5,000 professionals in nine countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2022 was EUR 2.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki. Read more: www.yitgroup.com