YIT’s Half-year report January-June 2021

YIT Corporation Stock exchange release 30 July 2021 at 9:00 a.m.

YIT’s Half-year report January-June 2021

Satisfactory quarter driven by good housing results. Group adjusted operating profit at EUR 30 million.

  • YIT’s adjusted operating profit improved to EUR 30 million (5).
  • Good results in the housing businesses.
  • Infrastructure’s adjusted operating profit at loss due to margin reductions on certain projects.
  • Solid operating cash flow after investments of EUR 109 million (247).
  • Net interest-bearing debt decreased to EUR 353 million (715). Gearing continued to improve reaching 35% (73).
  • Strong residential sales continued. Number of unsold completed apartments at a low level.
  • Housing start-ups in Finland and CEE increased substantially to 1,878 (889).
  • YIT signed a committed EUR 300 million revolving credit facility linked to sustainability targets.
  • Measures to improve performance progressed at a fast pace. Focus on project management, operating model and Infrastructure business.
  • Ilkka Tomperi appointed as Executive Vice President of the Partnership properties segment as of August 2021.
  • Pasi Tolppanen appointed as Executive Vice President of the Infrastructure segment as of August 2021.
  • Tuomas Mäkipeska appointed as Chief Financial Officer as of beginning of February 2022 at the latest.

Key figures

EUR million

4-6/21 4-6/20 1-6/21 1-6/20 1-12/20
Revenue 733 700 1,339 1,407 3,069
Operating profit 25 0 40 -4 35
Operating profit margin, % 3.5 0.0 3.0 -0.3 1.1
Adjusted operating profit 30 5 51 13 85
Adjusted operating profit margin, % 4.1 0.7 3.8 0.9 2.8
Result before taxes 17 -8 23 -25 -6
Result for the period, continuing operations 11 -9 15 -18 -8
Result for the period, including discontinued operations 11 45 15 13 27
Earnings per share, EUR 0.05 0.22 0.06 0.06 0.13
Operating cash flow after investments 109 247 178 199 336
Net interest-bearing debt 353 715 353 715 628
Gearing ratio, % 35 73 35 73 68
Equity ratio, % 41 33 41 33 33
Return on capital employed, % (ROCE, rolling 12 months) 8.0 9.5 8.0 9.5 5.2
Order book 3,890 4,074 3,890 4,074 3,528
Combined lost time injury frequency (LTIF, rolling 12 months) 10.2 10.0 10.2 10.0 9.8
Customer satisfaction rate (NPS) 51 53 51 53 51

Nordic paving and mineral aggregates businesses sold on 1 April 2020, are reported as discontinued operations.
Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.


Markku Moilanen, President and CEO

“YIT’s second quarter was satisfactory in many ways. We swiftly took immediate measures to improve our performance, and the progress has been promising. Regarding the business performance, our cash flow was solid resulting in a lower net debt of EUR 353 million (715). Furthermore, the results of the housing businesses were very good, supporting our overall profitability. The Group’s adjusted operating profit improved to EUR 30 million (5).

I am proud of the excellent work the organisation has done in responding to strong housing demand by boosting sales and margins in all regions. Supported by the strong balance sheet, we have accelerated our housing start-ups significantly and expect this trend to continue throughout the year. With this, we are answering to customer needs and ensuring our solid market position also for next year.

In Business premises, performance improvement continued. Last year, our profitability was burdened by certain financial settlements, and the positive adjusted operating profit in this year’s second quarter is evidence that we are moving in the right direction. We are still finalising some old projects, but apart from these, Business premises’ project portfolio is healthy.

In Infrastructure, we took control of the business and went through the entire project portfolio in detail and found several areas for improvement where management attention was needed. This led to margin reductions in some of the projects and consequently, Infrastructure’s second quarter adjusted operating profit was negative. We expect challenges in Infrastructure to continue for the rest of the year while we are defining new direction for this business.

As Infrastructure strategy work has progressed, we have at this point made several important conclusions. First and foremost, we see that the Infrastructure business will continue to have a strategic role in the YIT Group. Our sustainable urban development agenda requires a wide portfolio of offerings, including top-notch infrastructure expertise. We already see that in large urban development projects, having our own infrastructure business enables us to achieve clear synergy benefits and financial opportunities. Our aim is to be differentiated, leading and an innovative partner for demanding infrastructure projects.

However, as the performance of this segment has not been satisfactory, changes are needed. Going forward, our focus will be on our core capabilities, such as rock tunnelling, foundation engineering, rail & tram and urban bridges & marine. We will take a look at our offering to become more competitive and efficient and in particular, be more selective in projects. Our future Infrastructure business will be somewhat smaller than today, but clearly more predictable and profitable.

Parallel to the Infrastructure strategy efforts, we have taken swift measures in project management and our operating model. The work is progressing according to our plans, and we expect to communicate the outcomes over the next couple of months. While actions are still needed, I am confident that we have all it takes to achieve steady operational performance with an efficient cost structure which will be the key for our future success.”




At the end of the second quarter 2021, YIT’s order book amounted to EUR 3,890 million (31 Mar 2021: 3,716). Compared to the first quarter, the order book remained stable in the Partnership properties segment and increased in all other segments. At the end of the quarter, 79% of the order book was sold (31 Mar 2021: 80).

The Group’s revenue was EUR 733 million (700). Revenue increased in Housing Finland and CEE, Housing Russia and Partnership properties. Revenue decreased in the Infrastructure and Business premises segments.

The Group’s adjusted operating profit amounted to EUR 30 million (5) and the adjusted operating profit margin to 4.1% (0.7). The result improved in the Housing Finland and CEE, Business premises, Housing Russia, and Partnership properties segments, but weakened in the Infrastructure segment.

YIT’s operating profit was EUR 25 million (0). The adjusting items amounted to EUR 5 million (5), including operating profit from operations to be closed.


The Group’s revenue was EUR 1,339 million (1,407). Revenue increased in the Housing Finland and CEE and Partnership properties segments, but decreased in the Business premises, Infrastructure and Housing Russia segments.

The Group’s adjusted operating profit amounted to EUR 51 million (13) and the adjusted operating profit margin to 3.8% (0.9). The result improved in the Business premises, Housing Finland and CEE, and Housing Russia segments but decreased in the Infrastructure and Partnership properties segments.

YIT’s operating profit was EUR 40 million (-4). The adjusting items amounted to EUR 11 million (16) including, among others, operating profit from operations to be closed.


Guidance for 2021

In Housing Finland and CEE, housing completions in 2021 are expected to decrease compared to 2020 and volatility between the quarters is expected to be high. In the third quarter, the number of completions is estimated to decrease to approx. 300 units compared to 874 units in the third quarter of 2020, which is expected to have an approx.  EUR 15 million impact on the segment’s adjusted operating profit year-on-year. On the other hand, the fourth-quarter completions are expected to be at a high level.

For the full year, Housing Russia’s solid underlying performance is estimated to continue. In Business premises, the stabilising development is expected to continue. The infrastructure segment is expected to be impacted by certain low performing projects during the second half of the year. In Partnership properties, portfolio development is expected to continue.

YIT expects its full-year 2021 adjusted operating profit to be higher than in 2020 (EUR 85 million).

The result is dependent on certain project completions and contract closings towards the end of the year. 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. Changes in market yields or estimated future cash flows may have impacts on the fair value of the investments.

Supported by the strong balance sheet, YIT has answered to market demand by significantly increasing its apartment start-ups. This is expected to tie up capital as the year progresses.


News conference for investors and media

YIT will arrange a news conference on Friday, 30 July 2021 at 10.00 a.m. Finnish time (EET, at 8.00 a.m. GMT). The results will be presented by Markku Moilanen, President and CEO of YIT Corporation, and CFO Ilkka Salonen. 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.

The news conference can be participated also through a conference call. Questions can be asked via the conference call and should be asked in English. At the end of the event, the media has the opportunity to ask questions also in Finnish.

Conference call participants are requested to dial in at least five minutes prior to the start of the conference, at 9.55 a.m. (EET). Conference call numbers are:

  • Participants from Finland +358 (0)9 8171 0310

  • Participants from Sweden +46 (0)8 5664 2651
  • Participants from UK and outside of Nordic countries +44 (0)33 3300 0804
  • Participants from US +1 (0)63 1913 1422

The participants will be asked to provide the following confirmation code: 42034878#.

The event is targeted for analysts, portfolio managers and the media. Welcome!


For further information:
Tommi Järvenpää
, Vice President, Investor Relations, YIT Corporation, tel. +358 (0)40 576 0288, tommi.jarvenpaa@yit.fi
Ilkka Salonen, CFO, YIT Corporation, tel. +358 (0)45 359 4434, ilkka.salonen@yit.fi

YIT Corporation

Tommi Järvenpää
Vice President, Investor Relations

Distribution: Nasdaq Helsinki, major media, www.yitgroup.com

YIT is the largest Finnish and a significant North European urban developer and construction company. Our goal is to create more sustainable, functional and attractive cities and living environments. We develop and build apartments, business premises and entire areas. We also specialise in demanding infrastructure construction. We own properties together with our partners, which supports the implementation of our significant development projects. We also provide our customers with services that increase the value of properties. We employ approximately 7,400 professionals in ten countries: Finland, Russia, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2020 was approximately EUR 3.1 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com