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YIT Oyj — Management Reports 2013
May 21, 2013
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YIT publishes additional information (non-ifrs) for continuing operations for 2012 and first quarter of 2013
YIT publishes additional information (non-ifrs) for continuing operations for 2012 and first quarter of 2013
Helsinki, Finland, 2013-05-21 11:33 CEST (GLOBE NEWSWIRE) -- YIT Corporation
STOCK EXCHANGE RELEASE MAY 21, 2013 at 12.33
p.m.
YIT PUBLISHES ADDITIONAL INFORMATION (NON-IFRS) FOR CONTINUING OPERATIONS FOR
2012 AND FIRST QUARTER OF 2013
YIT's Board of Directors approved and published the demerger plan concerning
the partial demerger on February 21, 2013. According to the demerger plan, YIT
will demerge such that all of the assets and liabilities related to YIT's
Building Systems business will be transferred to a company, to be established
in the demerger, named Caverion Corporation. YIT's Construction Services
business will make up the continuing operations.
The demerger will become effective when YIT's Extraordinary General Meeting on
June 17, 2013, approves the demerger and its implementation is recorded in the
Finnish Trade Register. The planned registration date is June 30, 2013, after
which Caverion shares will be admitted for public trading on the NASDAQ OMX
Helsinki.
The prospectus relating to Caverion Corporation, an entity to be established in
YIT's partial demerger, will be published by estimated on June 5, 2013 and it
will be available on YIT's website (www.yitgroup.com).
Non-IFRS information for YIT's continuing operations for 2012 and the first
quarter of 2013
Principles followed in preparing unaudited non-IFRS information
The unaudited non-IFRS information illustrates what the result, financial
position and cash flow of YIT's continuing operations would have been had the
demerger taken place on January 1, 2012. The financing arrangements negotiated
related to demerger have been taken into account when the information has been
prepared. The non-IFRS information presented in this release is based on YIT's
consolidated financial statements according to the present structure, prepared
in accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union, with the items associated with the Building
Systems business omitted. Certain adjustments have been made to the figures,
and the rationale for these adjustments is described in this release.
It is the company's view that the non-IFRS information presented in the release
provides a relevant picture of the result of operations, financial position and
cash flow of the continuing YIT Group. The adjustments made in preparing the
non-IFRS information are based on available information and assumptions. There
is no certainty that the assumptions applied in preparing the unaudited
non-IFRS information will prove to be correct.
This non-IFRS information is presented solely for illustrative purposes, and it
may not be descriptive of the company's result of operations, financial
position or future cash flow after the demerger.
Non-IFRS information
The non-IFRS information presented in the release differs from the official
figures prepared according to IFRS 5, which are presented as comparison data
for the continuing YIT for 2012 and 2013 after the approval of the demerger.
The most significant difference is associated with the balance sheet, which is
not adjusted in accordance with IFRS 5, but will also be presented according to
the present structure for the reference periods after the approval of the
demerger. In the comparison data after the approval of the demerger, prepared
in accordance with IFRS 5, the share allocated to Caverion in the income
statement and cash flow statement will be presented as discontinued operations,
separate from continuing operations.
The non-IFRS information presented is not intended to replace information
reported in accordance with IFRS, and this non-IFRS information is not intended
to be given more weight than the information presented in accordance with IFRS.
Assumptions applied in the adjustments to capital structure and financial
expenses
YIT's capital structure will change in connection with the demerger. This
non-IFRS information presents YIT's capital structure in accordance with the
demerger plan. For the purposes of preparing the non-IFRS information for the
continuing YIT Group, the reported financial statements and interim financial
statements have been adjusted under the following assumptions:
-
The financial expenses of the continuing YIT have been adjusted,
considering the cash and cash equivalents and borrowings transferred to
Caverion, the effects of the demerger on YIT's other existing borrowings,
and planned changes to YIT's bond portfolio.
The planned changes are presented in a separate stock exchange release,
published on May 21, 2013. The adjustments made assume that YIT's financial
expenses will be decreased by the interest on borrowings transferred to
Caverion, the decrease in YIT's other borrowings and exchange rate losses
allocated to Caverion. Correspondingly, it has been assumed that financial
expenses will increase as a result of the increase in the coupon rate of
fixed-rate bonds, the net effect of the refinancing of floating-rate bonds
and an increase in the interest rate margin of certain bank loans. In
calculating the effect of bonds on financial expenses, it has been assumed
that all floating-rate bonds will be redeemed and that the coupon rates of
fixed-rate bonds will be increased in accordance with the proposal made to
the bond bearers' creditor meeting. The net effect of these various
adjustments will decrease the reported financial expenses for 2012 by EUR
5.1 million and the financial expenses for the first quarter of 2013 by EUR
0.6 million. -
In connection with the demerger, part of YIT's existing borrowings will
transfer to Caverion. These borrowings have been adjusted from the balance
sheet of the continuing YIT. The borrowings of YIT have also been adjusted
for the EUR 140 million loan drawn before the demerger, which will be used
to repay YIT's borrowings and will be transferred to Caverion in connection
with the demerger.
This non-IFRS information is presented based on the above assumptions
concerning the effects of the demerger.
The non-IFRS information illustrating the effects of the rearrangement of
financing is based on assumptions concerning the amount of cash and cash
equivalents and borrowings transferred to Caverion and the above assumptions
concerning changes in YIT's bond portfolio. The final amount of cash and cash
equivalents and borrowings transferred to Caverion in the demerger and the
effect of the changes in the bond portfolio may materially deviate from those
presented in this non-IFRS information, as the amounts of cash and cash
equivalents and borrowings transferred to Caverion upon the execution of the
demerger are based on the balance sheet values at the date of the demerger and
the changes in the bond portfolio depend on the decision of the bond bearers to
approve the offer to redeem and/or proposed changes to the terms and
conditions. This may result in significant changes to the result of operations
and financial position of the continuing YIT presented in this non-IFRS
information.
Cash flow statement
The cash flow statement has been prepared by taking into account the items
allocated to YIT's continuing operations from the YIT Group figures reported
based on the present structure. The cash flow statement does not take into
account the rearrangement of financing described above and related changes in
financial expenses.
- SEGMENT REPORTING
1.1 Adjusted Group figures by quarter, segment reporting
1-3/13 1-3/12 4-6/12 7-9/12 10-12/1 1-12/12
2
Revenue, EUR million 452.0 444.4 488.9 470.3 555.4 1,959.0
Operating profit, EUR 35.9 37.2 43.4 52.5 68.0 201.1
million
% of revenue 7.9 8.4 8.9 11.2 12.2 10.3
Profit before taxes, EUR 30.1 29.8 35.3 44.2 58.3 167.6
million
Profit for the review 23.0 22.7 28.6 34.8 44.3 130.4
period, EUR million 1)
IFRIC 15 adjustment -0.5 2.6 6.2 -2.5 4.3 10.6
Profit for review period, 22.5 25.3 34.8 32.3 48.6 141.0
adjusted IFRIC 1)
Earnings/share, EUR 0.18 0.18 0.23 0.28 0.35 1.04
Diluted earnings per 0.18 0.18 0.23 0.28 0.35 1.04
share, EUR
Equity/share, EUR 6.23 5.21 5.37 5.65 6.53 6.53
Return on investment, last 14.9 - - - 14.9 14.9
12 months, %
Equity ratio, % 40.7 35.9 37.0 37.9 43.1 43.1
Order backlog at end of 2,710.2 2,570.9 2,686.6 2,748.4 2,765.1 2,765.1 period, EUR million
Average number of 6,658 6,508 6,813 6,860 6,741 6,730
personnel
Personnel at end of period 6,689 6,505 7,001 6,756 6,691 6,691
1) attributable to equity holders of the parent company
1.2. Adjusted segment information by quarter, segment reporting
Revenue by business segment
EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/1 1-12/12
2
Construction Services Finland 326.0 329.5 347.9 308.9 342.6 1,329.0
International Construction 119.0 107.9 133.4 153.3 205.0 599.6
Services
Other items 7.0 7.0 7.6 8.1 7.8 30.5
Revenue in total, segment 452.0 444.4 488.9 470.3 555.4 1,959.0
reporting
Operating profit by business segment
EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/1 1-12/1
2 2
Construction Services Finland 26.5 31.4 33.5 28.9 40.2 134.1
International Construction 11.6 9.7 14.1 25.7 31.0 80.4
Services
Other items -2.2 -3.9 -4.2 -2.1 -3.2 -13.4
Operating profit total, segment 35.9 37.2 43.4 52.5 68.0 201.1
reporting
Operating profit margin by business segment
% 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
Construction Services Finland 8.1 9.5 9.6 9.3 11.7 10.1
International Construction 9.8 9.0 10.6 16.7 15.1 13.4
Services
Order backlog by business segment
EUR million 3/13 3/12 6/12 9/12 12/12
Construction Services Finland 1,424.9 1,428.0 1,499.9 1,541.0 1,499.0
International Construction Services 1,285.3 1,142.9 1,186.7 1,207.4 1,266.1
Order backlog total, segment 2,710.2 2,570.9 2,686.6 2,748.4 2,765.1
reporting
Operative invested capital*)
EUR million 3/13 3/12 6/12 9/12 12/12
Construction Services Finland 584.2 552.1 515.3 546.8 581.7
International Construction Services 718.7 651.8 655.7 703.8 708.3
Return on operative invested capital*)
Last 12 months, % 3/13 3/12 6/12 9/12 12/12
Construction Services Finland 22.7 24.6 25.0 24.3 23.5
International Construction Services 12.0 6.1 6.5 10.5 12.3
*) Only operational items are taken into account in calculating the segments'
invested capital.
- GROUP REPORTING, IFRIC
2.1. Adjusted Group figures by quarter, IFRIC
1-3/13 1-3/12 4-6/12 7-9/12 10-12/1 1-12/12
2
Revenue, EUR million 445.6 444.5 523.3 458.6 562.5 1,988.9
Other operating income -409.4 -402.3 -470.7 -408.7 -488.6 -1,770.3
and expenses
Depreciation, -5.2 -5.1 -5.1 -5.4 -5.0 -20.6
amortisation and
impairment
Operating profit, EUR 31.0 37.2 47.4 44.5 68.9 198.0
million
% of revenue 7.0 8.4 9.1 9.7 12.2 10.0
Financial income, EUR 0.4 1.1 2.7 0.0 0.8 4.6
million
Exchange rate -0.1 -1.0 -1.5 -1.4 -1.7 -5.5
differences, EUR million
Financial expenses, EUR -1.5 -3.9 -5.0 -2.3 -4.1 -15.3
million
Profit before taxes, EUR 29.8 33.5 43.6 40.8 63.9 181.8
million
% of revenue 6.7 7.5 8.3 8.9 11.4 9.1
Income taxes -7.3 -7.8 -9.1 -8.2 -14.6 -39.8
Profit for the period 22.5 25.7 34.5 32.6 49.3 142.1
% of revenue 5.0 5.8 6.6 7.1 8.8 7.1
Attributable to
Equity holders of the 22.5 25.3 34.8 32.3 48.6 141.0
parent company
Non-controlling interest 0.0 0.4 -0.3 0.3 0.7 1.1
Earnings/share, EUR 0.18 0.20 0.28 0.26 0.39 1.12
Earnings/share, diluted, 0.18 0.20 0.28 0.26 0.39 1.12
EUR
Equity/share, EUR 5.75 4.67 4.89 5.14 6.05 6.05
Equity ratio, % 37.3 31.5 33.4 34.6 39.8 39.8
Net interest-bearing debt 677.7 657.5 674.1 685.9 616.0 616.0
at end of period, EUR
million
Net interest-bearing debt 3.0 - - - - 2.7
at end of period /
EBITDA, EUR million
Gearing ratio, % 94.0 112.0 109.7 106.1 80.9 80.9
Gross capital 8.8 6.0 6.5 7.9 8.0 28.4
expenditure, EUR million
% of revenue 2.0 1.4 1.2 1.7 1.4 1.4
Unrecognised order 3,045.9 2,990.7 3,050.5 3,191.8 3,108.6 3,108.6
backlog at end of
period, EUR million
Personnel at end of 6,689 6,505 7,001 6,756 6,691 6,691
period
2.2. Adjusted consolidated balance sheet, IFRIC
EUR million 3/13 3/12 6/12 9/12 12/12
Assets
Non-current assets
Tangible assets 77.0 76.6 74.4 76.4 78.7
Goodwill 10.9 10.9 10.9 10.9 10.9
Other intangible assets 22.6 22.5 23.2 22.3 22.8
Shares in associated companies 0.4 3.0 0.4 0.3 0.4
Other investments 0.9 0.9 0.9 0.9 0.9
Other receivables 0.6 0.6 0.8 1.2 1.0
Deferred tax receivables 46.6 54.9 47.3 49.9 44.3
Current assets
Inventories 1,914.6 1,727.5 1,726.8 1,814.5 1,862.5
Trade and other receivables 250.7 294.7 316.5 298.9 244.9
Cash and cash equivalents 63.9 65.1 60.2 56.2 74.9
Total assets 2,388.2 2,256.7 2,261.4 2,331.5 2,341.3
Equity and liabilities
Equity attributable to equity 720.4 584.4 613.0 644.8 759.0
holders of the parent company
Non-controlling interest 0.4 2.4 1.6 1.9 2.7
Total equity 720.8 586.8 614.6 646.7 761.7
Non-current liabilities
Deferred tax liabilities 24.5 16.9 16.4 17.8 20.7
Pension obligations 0.6 0.4 0.6 0.6 0.6
Provisions 42.9 46.1 53.8 45.4 41.6
Borrowings 387.9 427.2 416.7 410.8 441.4
Other liabilities 37.0 43.9 37.6 32.6 28.0
Current liabilities
Advances received 446.7 396.0 421.6 460.1 429.5
Trade and other liabilities 357.6 415.0 359.2 362.9 345.6
Provisions 16.5 29.0 23.4 23.3 22.8
Current borrowings 353.7 295.4 317.6 331.3 249.5
Total equity and liabilities 2,388.2 2,256.7 2,261.4 2,331.5 2,341.3
2.3. Cash flow statement
EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/ 1-12/1
12 2
Cash flows from operating
activities
Net profit for the financial 22.5 25.7 34.5 32.6 49.3 142.1
period
Reversal of accrual-based items 13.0 23.4 24.3 14.1 24.2 86.0
Change in working capital
Change in current receivables -2.1 -40.3 -5.8 10.4 42.1 6.4
Change in inventories -39.6 -46.9 -37.5 -62.3 -51.4 -198.0
Change in current liabilities 18.7 57.1 61.9 14.1 -39.5 93.6
Change in working capital, total -23.0 -30.1 18.6 -37.7 -48.8 -98.0
Interest paid -10.1 -10.2 -9.3 -4.4 -6.6 -30.4
Other financial items, net -1.6 -4.4 -0.6 -1.9 0.3 -6.6
Interest received 0.3 0.7 0.6 0.5 1.4 3.2
Taxes paid -3.9 -13.1 -2.5 -3.4 -5.1 -24.1
Net cash generated from -2.8 -8.0 65.6 -0.1 14.7 72.2
operating activities
Cash flow from investing
activities
Purchases of property, plant and -2.4 -3.7 -4.5 -7.3 -6.0 -21.5
equipment
Purchases of intangible assets -1.2 -2.5 -2.3 -0.7 -2.0 -7.5
Proceeds from sale of shares in 2.9 2.9
associated companies
Proceeds from sale of tangible 1.0 0.0 2.2 0.3 1.3 3.8
and intangible assets
Sale of investments 0.1 0.1
Net cash used in investing -2.6 -6.1 -4.6 -4.9 -6.8 -22.4
activities
Operating cash flow after -5.4 -14.1 61.0 -5.0 8.0 49.8
investments
Cash flow from financing
activities
Change in loan receivables 2.4 -8.1 -3.7 5.5 -7.6 -13.9
Change in current liabilities 57.2 28.6 21.9 14.3 -99.6 -34.9
Proceeds from borrowings 50.0 50.0 50.0 150.0
Repayment of borrowings -5.3 -55.3 -60.3 -5.6 -0.5 -121.6
Payments of financial leasing -0.1 -0.1 0.0 -0.1 0.0 -0.2
debts
Dividends paid -87.9 -88.1 -88.1
Equity financing to Caverion 28.7 13.2 12.9 -12.6 68.4 81.9
Group *)
Net cash used in financing -5.1 28.3 -67.2 1.4 10.7 -26.8
activities
Net change in cash and cash -10.5 14.2 -6.3 -3.6 18.7 23.0
equivalents
Cash and cash equivalents at 73.8 50.3 65.1 58.3 55.5 50.3
beginning of period
Change in the fair value of cash 0.5 0.6 -0.4 0.8 -0.3 0.6
equivalents
Cash and cash equivalents at end 63.9 65.1 58.3 55.5 73.8 73.8
of period
*) In the cash flow statement, changes in the net assets allocated to Caverion
are presented as a separate item of cash flow from financing activities,
illustrating the internal financing between YIT Group and Caverion Group during
the presented periods.
2.4 Exceptional items affecting operating profit
EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
International Construction 7.0 7.0
Services
The operating profit for International Construction Services for the third
quarter of 2012 was improved by the cancellation of a EUR 7 million cost
provision due to the ammonia issue in St. Petersburg. YIT made a provision of
EUR 10 million during the third quarter of 2011 to cover the costs of
rectifying the problem.
For further information, please contact:
Timo Lehtinen, Chief Financial Officer, +358 45 6700 626, [email protected]
Janne Tallqvist, Vice President, Group Treasury, +358 50 5124913,
[email protected]
Hanna-Maria Heikkinen, Vice President, Investor Relations, +358 40 826 2172,
[email protected]
YIT Corporation
Hanna-Maria Heikkinen
Vice President, Investor Relations
Distribution: NASDAQ OMX, principal media, www.yitgroup.com
YIT is a leading European service company in building systems, construction
services and services for industry. Our 25,000 professionals serve customers in
14 countries in the Nordic and Baltic countries, Russia and Central Europe. For
over one hundred years we have grown together with our customers and developed
our services in line with the changes taking place in different societies. We
intend to continue on that track. Our vision is to lead the way in creating and
maintaining good living environments. In 2012, YIT's revenue was approximately
EUR 4.7 billion. YIT's shares are listed on the NASDAQ OMX Helsinki.
www.yitgroup.com
DISCLAIMER
This announcement is not an offer of securities for sale in any jurisdiction.
No securities are being registered under the US Securities Act of 1933 and may
not be offered or sold in the United States absent registration or an exemption
from registration. No public offering of securities is being made in the United
States.
This release includes forward-looking statements. These forward-looking
statements include, but are not limited to, all statements other than
statements of historical facts contained in this communication, including,
without limitation, those regarding the demerger plan and its execution. By
their nature, forward looking statements involve known and unknown risks,
uncertainties and other factors because they relate to events and depend on
circumstances that may or may not occur in the future. Such statements are
based on numerous assumptions and may differ materially from (and be
significantly more negative than) those made in, or suggested by, the
forward-looking statements contained in this release.