YIT Oyj Q3 2023 Earnings Call Transcript

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

Question: Anssi Raussi - SEB, Research Division - Analyst : Yes. I have a few questions. I go one by one. So first about your operating cash flow. So could you maybe give us any ballpark of the operating cash flow if we exclude the impact of the sale of Maistraatinportti. This could help us maybe to think about the run rate here, underlying run rate.

Question: Anssi Raussi - SEB, Research Division - Analyst : Okay. And then about your commitments. I think you have like EUR 67 million of investment commitments and EUR 174 million of purchase commitments. So can you disclose what kind of terms are included in these contracts and what is the timeline in these commitments? And also maybe can you walk away from these commitments if necessary?

Question: Anssi Raussi - SEB, Research Division - Analyst : Okay. And then about the wind power pipeline. I think that you have had maybe some discussions with potential buyers, but have you been forced to adjust your so-called internal valuation for this development pipeline during these discussions? As we all know that interest rates have been rising and so on. So what kind of elements you've been facing in these discussions?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : I have a couple of questions, starting with Housing. What kind of -- I mean, you have mentioned campaigns earlier, what kind of campaigns are you running now and what kind of effects have you seen on that -- on the consumers?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : And then you had no dispersals to JVs in this quarter. How should we read this? Is there still investment capacity in your JVs or should we interpret that your need is now less than -- as your -- especially your smaller unsold apartments has declined?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Then on Business Premises and Maistraatinportti, it obviously impacted your top line, but did it impact your EBIT also, i.e., did you sell at a gain or loss?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : And staying in Business Premises. There has been no changes in the valuation yields of Mall of Tripla, I assume, as the value actually went a bit up. Is that correct?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : And then regarding your EUR 400 million disposal opportunities. Was Maistraatinportti included in that or -- originally or was it outside of 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. NOVEMBER 01, 2023 / 8:00AM, YIT.HE - Q3 2023 YIT Oyj Earnings Call

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : And then the last one on the efficiency program, which is proceeding nicely. You had a target of the total costs of that, but you mentioned that the costs have been lower so far that you have anticipated? Should we expect any changes to the one-off costs on that side?

Question: Svante Krokfors - Nordea Markets, Research Division - Analyst : Okay. And then one last one regarding your specification in the outlook where you mentioned apartment completions, postponements and so on. Clearly, you had postponements now in CEE from Q3 to Q4, but should we read it in general terms or more in short term, the change in the

Question: Anssi Raussi - SEB, Research Division - Analyst : Just a couple of follow-ups from me. First, about your refinancing negotiations. Just to make sure, are you still negotiating both November and March maturities at the moment?

Question: Anssi Raussi - SEB, Research Division - Analyst : Okay. And the last one from me is about maybe a big picture here. So I think you are estimating to complete roughly 50% less consumer apartments in the first 3 quarters into next year compared to this year. And I think that if you look at that like rolling 12 months, your sold units to investors is down like 50% as well. So how do you see your organization structure right now? And like what kind of thoughts you have? Like do you want to keep your organization as it is now for the future, maybe recovery or -- and how do you manage your subcontractors in this kind of situation? Some thoughts around this particular...

Question: Anssi Raussi - SEB, Research Division - Analyst : Okay. And actually, one more for me, if you let me ask. It's about public projects. And we know that, of course, you have to be the cheapest one to win the competition here. But do you want to take these projects and the higher resources to these low-margin projects, just to keep your resources in work?

Question: Olli Koponen - Inderes Oyj, Research Division - Analyst : I have a few questions already answered, kind of one question left, and it's on the Housing market. And just to make sure kind of that are you expecting this kind of -- or some kind of bundled deals in the Housing segment in Q4?

Question: Olli Koponen - Inderes Oyj, Research Division - Analyst : And to kind of follow up on that, can you confirm that nothing like this is included in your guidance? Or are you expecting something to be included in your guidance?