YIT Corporation Stock exchange release
YIT's Financial statements release 2021
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.
- Adjusted operating profit amounted to
EUR 114 million (85). - Adjusted operating profit margin improved to 4.0% (2.8).
-
Operating profit was
EUR 65 million (35) -
Operating cash flow after investments was strong at
EUR 288 million (336). -
Net interest-bearing debt decreased to record-low
EUR 303 million (628), gearing at 30% (68). -
Dividend proposal of
EUR 0.16 per share (0.14), to be paid in two equal instalments.
-
Development business continued profitably with a positive impact of over
EUR 60 million in 2021, including the sale of Lestijärvi wind park with a positive impact ofEUR 48 million in the fourth quarter. -
As a part of the finalised project portfolio analysis, YIT booked margin reductions and inventory write-downs related to certain legacy and non-strategic projects, which had a negative impact of
EUR 66 million in the fourth quarter and approx.EUR 100 million in total in 2021. -
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.
-
Plot reserve stood at
EUR 748 million (812) at the end of the year enabling building of 29,000 new homes.
- Combined lost time injury frequency decreased to 8.9 (9.6).
-
Tuomas Mäkipeska started as Chief Financial Officer on
1 November 2021
Key figures
EUR million | 10-12/21 | 10-12/20 | 1-12/21 | 1-12/20 |
Revenue | 929 | 975 | 2,856 | 3,069 |
Operating profit | 20 | 55 | 65 | 35 |
Operating profit margin, % | 2.1 | 5.6 | 2.3 | 1.1 |
Adjusted operating profit | 45 | 56 | 114 | 85 |
Adjusted operating profit margin, % | 4.8 | 5.7 | 4.0 | 2.8 |
Result before taxes | 13 | 46 | 35 | -6 |
Result for the period, continuing operations | -4 | 36 | 7 | -8 |
Result for the period, including discontinued operations | -8 | 39 | 4 | 27 |
Earnings per share, EUR | -0.04 | 0.19 | 0.00 | 0.13 |
Operating cash flow after investments | 133 | 146 | 288 | 336 |
Net interest-bearing debt | 303 | 628 | 303 | 628 |
Gearing ratio, % | 30 | 68 | 30 | 68 |
Equity ratio, % | 40 | 33 | 40 | 33 |
Return on capital employed, % (ROCE, rolling 12 months) | 8.1 | 5.2 | 8.1 | 5.2 |
Order book | 4,042 | 3,528 | 4,042 | 3,528 |
Combined lost time injury frequency (LTIF, rolling 12 months)* | 8.9 | 9.6 | 8.9 | 9.6 |
Customer satisfaction rate (NPS) | 52 | 51 | 52 | 51 |
Nordic paving and mineral aggregates businesses sold on
Unless otherwise noted, the figures in brackets refer to the corresponding period in the previous year.
* YIT has widened its scope of calculating combined lost time injury frequency (LTIF) as of
Markku Moilanen, President and CEO
"When I started as the President and CEO of YIT at the beginning of April, my mission for the year was clear: we had to become much more resilient in our operations, eliminate deviations in project performance and secure stable profitability development. Consequently, 2021 was a year of change and renewal for YIT as we took decisive actions in various areas to stabilise our performance and lay the foundation for sustainable success. For example, we established new strict and clear processes and practices in project tendering and management. We also renewed our entire operating model. Most important of all, we launched a new strategy to leverage our strengths, making it possible for us to strengthen our position as the number one development and construction company in
When looking back, I can say I am satisfied with the outcomes. Our Group adjusted operating profit increased to
The biggest turnaround during the year was achieved by Business Premises. The rigorous work to improve project management is bearing fruit. Significant losses in 2020 turned into positive adjusted operating profit in 2021, and the business is solidly on its way to achieving best-in-class financial performance. In Infrastructure, we started a similar transformation journey in 2021. We went through our entire project portfolio and made the necessary adjustments. While a handful of low-margin legacy projects will continue to have a negative drag on the segment's earnings over the next couple of years, the underlying project portfolio is healthy, which allows us to generate improving profits in the coming years.
In terms of sustainability, we took giant leaps in 2021. We decided to commit to the Science Based Targets initiative, as the first Finnish construction company to do so. With this commitment, we are strengthening our previous climate work and updating our climate targets to be more comprehensive. I am also delighted about the issuance of our first green bonds under our Green Finance Framework, which supports our efforts in reaching our sustainability targets.
Overall, I am proud of our stabilised and improved performance in 2021. However, this also required some tough decisions. For instance, as a part of strategy work and our renewed focus on project management, we executed a thorough analysis of our entire project portfolio to evaluate the financial performance of the projects and, simultaneously, their roles in our new strategy. As a result of this work, we booked margin reductions and inventory write-downs of over
We have put completely new management systems, processes and controls in place to make absolutely sure that such margin reductions and write-downs will not occur in the future. We have a strong grip on our current projects and new projects are being rigorously evaluated. At the same time, our net debt has decreased to levels which have not been seen at YIT for over 15 years. This gives us room for manoeuvre and enables growth in our Housing business. Finally, we have a new operating model led by a strong, new management team pointing the way to more efficient, competitive and customer-oriented ways of working.
The foundation is set, and it is time to execute. While we understand the work is only beginning, our confidence is very high. With our clear and focused strategy, we are set to deliver predictable, market-leading results."
Results
October-December
At the end of the fourth quarter 2021, YIT's order book amounted to
YIT's revenue was
YIT's adjusted operating profit amounted to
YIT's operating profit was
January-December
YIT's revenue was
YIT's adjusted operating profit increased to
YIT's operating profit was
Guidance for 2022
In Housing Finland and CEE, completions of consumer apartments are expected to decrease compared to 2021. Housing
YIT expects its Group adjusted operating profit to be higher than in 2021 (2021:
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
News conference for investors and media
YIT will arrange a news conference on Friday,
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.
Conference call participants are requested to dial in at least five minutes prior to the start of the conference, at
- 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: 64221145#.
The event is targeted for analysts, portfolio managers and the media. Welcome!
For further information:
YIT Corporation
Vice President, Investor Relations
Distribution: Nasdaq
YIT is the largest Finnish and a significant North European development and construction company with a strong customer focus and clear mission to create better living environments. We develop and build functional homes for sustainable living, future-proof public and commercial buildings and infrastructure for smoother flow of people, businesses and society. We employ 7,400 professionals in ten countries:
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