Yit Oyj Q2 2021 Earnings Call Transcript

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

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. I will definitely do that. It's Anssi from SEB. Thanks for finally taking my questions. I have a couple of them. I will take them one by one though. Kicking off with the Infrastructure, I mean, margin reductions and one-offs once again in Q2. Could you indicate the scale of margin reductions, I mean, without the one-offs would the infra business be in positive figures? Or what's the situation there?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. And can you indicate what projects are those?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. Then looking at the second half, you indicated that the margin will be diluted also in the coming quarters. So what's the scale? I mean, should we expect similar impact than in Q2, in Q3 and Q4? Or what's the situation?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. Then your comment on focusing your infra business, there is still quite a lot of business disciplines that you have and you are focusing. But did you elaborate what are the projects, what kind of business in what sectors? What is the business you are not keen staying in?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. And if we think about energy and that kind of industrial projects, does -- is this also a business you don't want to take part in?

Question: Anssi Kiviniemi - SEB, Research Division - Analyst : Okay. Then the last question is on input cost pressure. Assuming that the input costs remain at current levels, in wood products and steel and what have you, did you indicate any margin dilution impact for 2022, as you highlighted, that there won't be any impacts in 2021?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : This is Svante from Nordea. If we continue on infra Site and the margin reductions. Just to make it clear, so it's not kind of -- you haven't made a write-down. You have reduced the margins and you expect that this kind of events could occur still in H2. So it's not that you have made a kind of

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. And then on business premises, there was some old completions that burden still. Should we assume that, that is now cleaned out for H2?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. And could you give some indication of the financial impact on this old projects in Q2?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : And then more of Tripla obviously, performance dependent on the pandemic. But can you say something about the shopping center market situation, any changes in yields?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. And then on Housing Finland. Has there been any change to your apartment mix lately, what you want to start up any increase in average square meters or something like that owing to the pandemic?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : And what kind of impact do you think that has on your margins in consumer...

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. And then perhaps you have some comments on investor demand for apartments, both private and institutional?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : And then just to -- I'm not sure I heard it all, but did you say that regarding the wind park, it's more likely that it will close this year than next year?

Question: Olli Koponen - Inderes Oy - Analyst : It's Olli from Inderes. I have one question left after these questions, it's about your outlook and just that I understand it correctly what you say there. You said that in Housing Finland and CEE, you expect adjusted operating profit to be EUR 50 million lower than in Q3 2020, is that correct?

Question: Olli Koponen - Inderes Oy - Analyst : Yes. And if I read that correctly that would mean almost 0 result for the segment in Q3. Is that right?

Question: Olli Koponen - Inderes Oy - Analyst : Okay. Is there any other explanations? Or do you have any kind of margin prices there on certain projects? Or is this just because of the completions?

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : I have still a couple of questions. less. And I'm trying to understand the very high revenue in Housing Finland and CEE. So you obviously had higher completions and the ready inventory came down. How about the investor sales and the investor business, is the revenue higher this year compared to last year? 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 30, 2021 / 7:00AM, YIT.HE - Q2 2021 Yit Oyj Earnings Call

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : So that contributes positively to the revenue level, okay? And how about the average selling prices, you noted that -- and we have seen that apartment prices have increased. But can you elaborate what is your average selling price level in Finnish consumer houses and in CEE, could you elaborate that?

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst :

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : Okay. Is there other factors like mix, geographical mix or in the apartment mix that is driving prices that are you over-performing the average market level? Or how would you describe that?

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : Okay. Then a question on margins in this housing in Finland and CEE segment. Do you expect to improve your margins also next year? Or do you see this year's margin as extraordinary high as the new starts will obviously have significantly higher costs, how do you see this?

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : Okay. Very good. And then question relating to the consumer start-ups in Finland. So they have been quite low level before this quarter given that the demand has been very strong. Why it was so?

Question: Matias Rautionmaa - Danske Bank A/S, Research Division - Analyst : Okay. And are you happy with your land bank and building rights? Do you have enough building rights that allows you to respond demand quickly enough? Are you happy with the situation?