Yit Oyj Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Olli Koponen - Inderes Oy - Analyst : It's Olli Koponen from Inderes. Can you hear me? Hello? Can you hear me?

Question: Olli Koponen - Inderes Oy - Analyst : Okay. And it's Olli from Inderes. I have a few questions. First, just a general question about coronavirus and its effects. Did you have any extra costs relating to the pandemic in the quarter? You mentioned the housing effect in Finland and CEE, but any other costs?

Question: Olli Koponen - Inderes Oy - Analyst : Okay. You said that there were some delays on the projects that were in your pipeline, but are you expecting those to go ahead in these next quarters?

Question: Olli Koponen - Inderes Oy - Analyst : Okay. Then on the Housing Finland and CEE, I looked at your housing starts have been quite low during the H1, especially in CEE. Do you have plans or do you see the market demand as good that you're planning to ramping up those in Q3? Or do you think that 2021 is going to be marketing a lower year for consumer completions in Housing Finland and CEE?

Question: Olli Koponen - Inderes Oy - Analyst : Okay. And then on the Business Premises, you quite well explained the effect Tripla closure is expected to be -- I'm not going to ask about that, but you said that the balance sheet profitability is now on a healthy level. Can you elaborate what is kind of a healthy level...

Question: Olli Koponen - Inderes Oy - Analyst : Order book, yes. What is kind of a healthy level of profitability should we expect from Business Premises going forward?

Question: Olli Koponen - Inderes Oy - Analyst : Okay. Just 1 last question about the new housing fund that you established yesterday. Can you give us any info where are those apartments located? And how big of an earnings yield are you expecting to achieve from these achievements -- investments?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : First of all, a couple of follow-ups. You highlighted that you have seen some postponements in decision-making in larger projects from investors. But have you seen any cancellations?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : That's pretty clear. Let's go to the next one. You basically indicated that you're still committed to good consumer start-ups going forward in Finland and CEE. Should we expect the pretty normal level already in Q3? Or what is your strategy when you are allocating capital currently in your Housing business?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. Then on Tripla, could you elaborate a bit on what kind of disagreements there were with contractors and you guys because the figures seem quite big. So why did -- let's say, one-offs, why did they emerge?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. And there are still some disputes ongoing in Tripla, but are there any other risks in your project portfolio, where you see, let's say, elevated risks of cost overruns or disputes?

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : Okay. Many of my questions were already asked, but I have some left still. Could you a bit open up Tripla fair valuation? How much the yield it went up, can you clarify that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2020 / 7:00AM, YIT.HE - Q2 2020 Yit Oyj Earnings Call

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : Okay. Very well. Then a question related to this Keilaniemi development project. You have presold the [pavilion key] building. Is it binding -- how binding is the agreement? Can the buyer withdraw?

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : Okay, clear. And then about the Tripla -- mall of Tripla construction project. What's the construction margin for the Tripla Mall? Was it positive or negative?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Svante Krokfors from Nordea. A couple of questions left for me. First on Housing Finland and CEE. You said that the margin was impacted by sales mix and it was mainly owing to investor consumer distribution. Was there any impact from the geographical side? And how do you guide on the mix for the second half of this year?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. And then you mentioned the housing company loan development being challenging. Do you want to give some extra color on that? And how you expect that to develop? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 28, 2020 / 7:00AM, YIT.HE - Q2 2020 Yit Oyj Earnings Call

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. That's clear. And then on Business Premises, you said after Q1 that based on the order book, revenue should bottom in the second quarter and improve in the following quarters. Now you basically guide that your -- you would post a positive result in Q3, but has the volume outlook changed since your Q1 guidance?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. Then one last one. You said that mall of Tripla valuation yield increased 25 basis points. I assume it's somewhere around 5, so it's a meaningful change. But I guess that then means that you have also raised the rental assumptions in the valuations then?