{"segments": [{"speakerId": "spk1", "sentences": [{"start": 1, "end": 7, "text": "Good morning, everyone, and welcome to the second quarter 2024 results webcast."}, {"start": 8, "end": 12, "text": "My name is Nick Dean, and I'm heading Investor Relations at YIT Corporation."}, {"start": 13, "end": 19, "text": "Joining me here are our CEO, Heikki Vuorenmaa, and our CFO, Tuomas Mäkipeska."}, {"start": 19, "end": 22, "text": "At this point, I will hand over to Heikki."}, {"start": 22, "end": 23, "text": "Please go ahead.
"}]}, {"speakerId": "spk2", "sentences": [{"start": 26, "end": 31, "text": "Thank you. Welcome to the webcast, also from my side."}, {"start": 32, "end": 37, "text": "We launched our transformation program back in February 2023."}, {"start": 38, "end": 43, "text": "At that time, we aimed to achieve our savings target by the end of 2024."}, {"start": 45, "end": 53, "text": "Today, I'm pleased to announce that we have already implemented the measures needed to save 40 million euros annually from our operations."}, {"start": 55, "end": 58, "text": "This development does not mark the end of our efforts.
"}, {"start": 58, "end": 64, "text": "We will continue to optimize our operational efficiency to identify further cost savings."}, {"start": 66, "end": 73, "text": "Our profit for the second quarter was driven by infrastructure, business premises, and exceptional performance in these areas."}, {"start": 73, "end": 77, "text": "However, the housing market in Finland remains affected by the muted market conditions."}, {"start": 78, "end": 90, "text": "On a positive note, housing in Finland has seen our apartment sales grow for the fifth consecutive quarter, and the number of unsold apartments decreased by 13% in one quarter."}, {"start": 93, "end": 103, "text": "Our quarterly revenue declined to 434 million euros, primarily due to one-time events in the housing segment during the comparison period.
"}, {"start": 104, "end": 109, "text": "Our adjusted operating profit decreased to 7 million euros for the quarter."}, {"start": 110, "end": 121, "text": "Accelerated transformation savings also incurred anticipated one-time costs that were realized during the second quarter, impacting our operating profit."}, {"start": 122, "end": 136, "text": "One-time costs totaled 49 million euros, with 28 million associated with transformation cost savings, and 19 million was related to the closure of some historical projects in Sweden."}, {"start": 138, "end": 144, "text": "One of the major costing items within the transformation costs is related to the use of our own premises.
"}, {"start": 145, "end": 155, "text": "During the second uarter, we declined to partially release our leased headquarter premises for suppliers to increase the efficiency of premises used."}, {"start": 156, "end": 160, "text": "This impacted abroad program costs by 20 million euros."}, {"start": 162, "end": 169, "text": "These one-time costs are naturally a burden within a quarter, yet they will improve company performance going forward."}, {"start": 172, "end": 179, "text": "Let's take a closer omega closer look at our operating engine and its four cylinders before diving deeper into our individual businesses."}, {"start": 179, "end": 189, "text": "As mentioned, revenue from the housing sales in Finland declined by over 50%, and the profit decreased by 8 million euros compared to the previous year.
"}, {"start": 190, "end": 199, "text": "On the other hand, our CEE and Baltic operations continued with stable performance, although a low number of completions impacted revenue and profitability."}, {"start": 200, "end": 210, "text": "Our infrastructure segment significantly increased its profitability, achieving an adjusted operating profit of over 6% for the quarter."}, {"start": 210, "end": 217, "text": "Business premises continued to improve their underlying operational performance and maintained good project control over the business."}, {"start": 219, "end": 223, "text": "But let's move now to individual businesses and start from housing in Finland.
"}, {"start": 223, "end": 234, "text": "As a result of increased apartment sales, the number of unsold apartments decreased to 867 units at the end of June."}, {"start": 235, "end": 242, "text": "We see this now as a positive trend going forward, and believe that the highest number of unsold apartments in Finland is behind us."}, {"start": 243, "end": 262, "text": "The order book stands at €600 million, impacted by the low number of startups and investor demand, resulting in a period loss of €6 million. We continue to accelerate actions and mitigate our operational costs to minimize losses in the coming quarters."}, {"start": 264, "end": 269, "text": "In this image, we have included all the completed apartments available on the market."}, {"start": 269, "end": 273, "text": "So, this is not only about why it's completed, but also why it's produced?"}, {"start": 274, "end": 277, "text": "The situation remains the same as in the previous quarter."}, {"start": 277, "end": 281, "text": "We do not observe new startups in Finland by housing market players.
"}, {"start": 281, "end": 289, "text": "Supply to the market this year is substantially lower than last year and in 2025, the supply will be exceptionally low."}, {"start": 289, "end": 296, "text": "The total number of completions is approximately 1,500 apartments for the full year of 2025."}, {"start": 296, "end": 309, "text": "However, if we exclude already sold and special purpose apartments, the supply will be something between 800 to 900 units in 2025 to the finished market."}, {"start": 310, "end": 321, "text": "So, we can say with reasonable confidence that we are going to see supply shortages during 2025, which may lead to an increase in pricing."}, {"start": 325, "end": 333, "text": "Our plan for a while has been to use our inventory as a buffer to balance demand and supply in this market cycle.
"}, {"start": 334, "end": 342, "text": "As we sell now from our inventory, our unsold inventory declined by 13%, or 133 units during one quarter."}, {"start": 342, "end": 353, "text": "If we use the second quarter sales base as a proxy for analysis, our stock of unsold apartments in Finland will last until the end of the third quarter of 2025."}, {"start": 354, "end": 359, "text": "Our stock remains well balanced and is located in the major university cities across Finland."}, {"start": 360, "end": 370, "text": "Some regional shortages are already present, for example, in the US we have only one unsold apartment, and in Turku, some 20 units."}, {"start": 372, "end": 381, "text": "We see our inventory at the moment as a valuable asset, as the timing and base of the market recovery remain unclear.
"}, {"start": 385, "end": 388, "text": "Let's then move to housing in the Baltic countries."}, {"start": 389, "end": 392, "text": "The second quarter was relatively uneventful."}, {"start": 392, "end": 397, "text": "KPIs are on the right track, and business is progressing according to plan."}, {"start": 397, "end": 404, "text": "Our capital employed remains under control, even though we added more capital to our plot reserves during the quarter."}, {"start": 405, "end": 412, "text": "However, we do see the potential to further release the capital through increased production and sales over time.
"}, {"start": 412, "end": 415, "text": "The number of unsold apartments in the inventory declined."}, {"start": 415, "end": 422, "text": "The order book is healthy, and our rolling 12 months profitability stands at 14%."}, {"start": 424, "end": 429, "text": "During this year, completions of 900 units will take place during the second half of the year."}, {"start": 429, "end": 434, "text": "It will positively contribute to the revenue and profit in those quarters."}, {"start": 438, "end": 440, "text": "This is due to the startups.
"}, {"start": 440, "end": 446, "text": "During the second quarter, we started a total of 186 apartments, all in key countries."}, {"start": 447, "end": 449, "text": "It is a bit less than our quarterly sales."}, {"start": 449, "end": 454, "text": "However, on a rolling 12 month basis, we are well balanced between new starts and sales."}, {"start": 454, "end": 459, "text": "In Finland, we have not started any consumer projects during this year."}, {"start": 460, "end": 467, "text": "However, we have today 11 projects in pre-marketing and another 29 ready to start as the timing is right."}, {"start": 467, "end": 477, "text": "We have a strong land bank and secured financial position, so the decision is in our own hands to analyze the right timing against our internal startup criteria."}, {"start": 478, "end": 481, "text": "What exactly is the optimum?"}, {"start": 481, "end": 483, "text": "To execute the startups in Finland."}, {"start": 487, "end": 490, "text": "On our production side, we have 3000 apartments under construction."}, {"start": 491, "end": 494, "text": "It is 30% from the peak volumes.
"}, {"start": 494, "end": 498, "text": "What we have observed in years 2020 to 2021."}, {"start": 498, "end": 502, "text": "It's also 50% less compared to the same period a year ago."}, {"start": 502, "end": 508, "text": "So, we can say that we are really focused on aligning our production with the market conditions in Finland."}, {"start": 509, "end": 517, "text": "The sales rate has remained at a good level for the consumer apartments and has been stable for the past three quarters."}, {"start": 518, "end": 522, "text": "However, the lower portion of investor sales continues to impact the overall number.
"}, {"start": 523, "end": 529, "text": "Operationally, production runs well and we have already started to benefit from lower construction costs."}, {"start": 529, "end": 532, "text": "This also impacts the lead times on our construction sites."}, {"start": 535, "end": 538, "text": "Let's delve into the completions more in detail."}, {"start": 538, "end": 545, "text": "We originally planned to complete approximately 250 apartments in the CEE region during the second quarter."}, {"start": 545, "end": 555, "text": "However, a total of 100 apartment projects were shifted to early July in the CEE, which postponed both revenue and profit from the second quarter.
"}, {"start": 555, "end": 560, "text": "Total completions during the quarter were 196 units."}, {"start": 560, "end": 569, "text": "Now, we expect that 900 apartments will be completed in the Baltics and CEE during the second half of the year, and approximately 250 in Finland."}, {"start": 572, "end": 573, "text": "Let's now move to the sales discussion."}, {"start": 574, "end": 586, "text": "As mentioned, we are really pleased that our segment, consumer sales in Finland, increased for the fifth consecutive quarter by 154 units during the quarter, while the absolute number is still modest.
"}, {"start": 587, "end": 591, "text": "The trend and the market sentiment are more positive than a year ago."}, {"start": 592, "end": 599, "text": "Our campaigns featuring a 2% five-year interest rate cap on mortgages and our 'rent your own home' offering have been successful."}, {"start": 600, "end": 604, "text": "We have sold approximately 100 units through these campaigns by now."}, {"start": 605, "end": 616, "text": "Sales reservations are at a good level and we are pleased with certain project pre-marketing reservations in Finland, which signals trust from consumers towards YIT."}, {"start": 617, "end": 626, "text": "In addition, we see that private investors are back on the market and we have negotiated small bundle deals with private investors during this year.
"}, {"start": 627, "end": 635, "text": "Overall, segment sales reached 350 units and a clear improvement came from sales in the Czech Republic during the quarter."}, {"start": 639, "end": 642, "text": "We now turn to our joint venture portfolio."}, {"start": 642, "end": 647, "text": "We are also operating in the Baltics, and through these joint venture structures."}, {"start": 647, "end": 653, "text": "It is part of our operating model to scale up the business and tie up less capital during the construction period."}, {"start": 654, "end": 662, "text": "Apartment sales to the market from joint ventures increased significantly compared to the previous year, with a total of 84 units during the second quarter.
"}, {"start": 663, "end": 674, "text": "During the quarter, we completed 135 units and estimate that in the second half of the year, completions will be an additional 200 units within those joint venture structures."}, {"start": 674, "end": 679, "text": "The number of unsold completed apartments declined to 204 units and is at a healthy level."}, {"start": 680, "end": 692, "text": "The capacity of this joint venture enables it to construct over 2000 new homes in the Baltic and CEE countries, and we are very pleased with the ongoing cooperation with our partners."}, {"start": 695, "end": 699, "text": "Then is the time to move to other segments and start with the infrastructure segment."}, {"start": 700, "end": 711, "text": "In the past 12 months, we have restructured the entire balance sheet through operative changes, business divestments, the ramp-down of our operations in Sweden, and more."}, {"start": 711, "end": 718, "text": "Now we have reduced over €70 million in capital employed from the operations year on year basis."}, {"start": 720, "end": 729, "text": "At the same time, we have improved the operational performance of the segment and reached our minimum target for the rolling 12-month adjusted operating profit."}, {"start": 730, "end": 735, "text": "Our order book is strong and it provides work for the following 24 months."}, {"start": 736, "end": 743, "text": "All in all, the infrastructure segment is now in a good place to see growth and further improve operational efficiencies."}, {"start": 747, "end": 752, "text": "Business premises are on the same journey as our infrastructure segment has been."}, {"start": 754, "end": 767, "text": "Our plan is relatively simple: to achieve negative capital employed with an excellent order book and, through operational efficiencies, attain profitability that will clearly exceed the minimum threshold."}, {"start": 768, "end": 781, "text": "While operational efficiencies and order book management are largely under our control, the balance sheet will be linked to the successful timing of divestments, which requires increased activity in the retail transaction markets."}, {"start": 782, "end": 788, "text": "Results for the second quarter were still a modest €5 million, or 2.9%."}, {"start": 789, "end": 796, "text": "However, we see that the segment is progressing according to the plan and underlying project execution is continuously improving."}, {"start": 799, "end": 806, "text": "Then, before handing over to our CFO, Tuomas Mäkipeska, I will go through our market outlook."}, {"start": 808, "end": 813, "text": "We are not making changes to our housing market outlook in Finland yet."}, {"start": 814, "end": 820, "text": "Yes, we see that the activity on the secondary market is picking up and the pricing levels are increasing."}, {"start": 821, "end": 835, "text": "Additionally, we also observe consumer sentiment and intentions to buy apartments, improving interest towards housing loans, and a shortening of the average marketing times on the primary market."}, {"start": 835, "end": 840, "text": "Home buyers are currently on the market and securing great deals for their new homes."}, {"start": 841, "end": 849, "text": "We have also seen private investors returning to the market and buying small bundle deals during the first half of the year."}, {"start": 851, "end": 858, "text": "However, uncertainty remains high, and the market recovery may still take more time than anticipated."}, {"start": 859, "end": 869, "text": "Therefore, we remain conservative with our view and state that the market still remains weak and may not materially improve during 2024."}, {"start": 871, "end": 873, "text": "On the Baltic countries."}, {"start": 873, "end": 875, "text": "The housing market is gradually improving."}, {"start": 875, "end": 877, "text": "Estonia remains weak."}, {"start": 878, "end": 882, "text": "In the Baltic and CEE countries, we operate in the normal housing market."}, {"start": 882, "end": 885, "text": "Our sales in all three countries are at a good level and so on."}, {"start": 885, "end": 891, "text": "Our price lists have already increased during the project execution."}, {"start": 893, "end": 895, "text": "Real estate market for us remains normal."}, {"start": 896, "end": 900, "text": "In politics, we have had success in tendering, especially in Lithuania."}, {"start": 900, "end": 904, "text": "In Finland, market activity remains normal."}, {"start": 904, "end": 911, "text": "From our viewpoint, the infrastructure market in Finland is normal, both in the public and private sectors."}, {"start": 912, "end": 916, "text": "A large amount of tenders will be decided during this year."}, {"start": 918, "end": 921, "text": "So that's all from our market environment."}, {"start": 921, "end": 926, "text": "And now it's time to hand over to our CFO, Tuomas, to go through the numbers in more detail."}, {"start": 927, "end": 928, "text": "Thank you. Okay.
"}]}, {"speakerId": "spk3", "sentences": [{"start": 931, "end": 944, "text": "From a financial perspective, Q2 was a stable continuation after a positive start to the year in Q1; especially, we continued on the right track to improve our financial position."}, {"start": 944, "end": 955, "text": "The highlight of the quarter was the finalization of the planned multi-step financing process, and a significant improvement in the maturity profile of the debt portfolio."}, {"start": 956, "end": 963, "text": "Overall, the underlying profitability of the group was driven by key operations and the contracting segments."}, {"start": 963, "end": 966, "text": "Infrastructure and business premises."}, {"start": 966, "end": 975, "text": "The housing market in Finland continued to challenge us and erode our revenues and profits in the housing segment, as already described.
<23 />"}, {"start": 976, "end": 982, "text": "We made progress in releasing capital from operations, and our capital employed decreased significantly."}, {"start": 983, "end": 989, "text": "Consequently, we decreased the net debt by approximately €80 million from the comparison period."}, {"start": 990, "end": 996, "text": "The cash flow was slightly negative, mainly due to the payments for plots that had been acquired earlier."}, {"start": 997, "end": 1005, "text": "Let's have a closer look at the financials, focusing first on the capital employed development at the group level."}, {"start": 1005, "end": 1015, "text": "We have released almost €140 million of capital during the last four quarters through robust execution of the capital release program.
"}, {"start": 1016, "end": 1025, "text": "In Housing Finland, we have been able to keep capital employed stable during the last 12 months due to the measures taken in operations."}, {"start": 1025, "end": 1042, "text": "The sale of apartments from inventory and low construction volumes will further release capital in upcoming quarters in Housing Baltics and see capital employed increase slightly due to land bank and inventory development."}, {"start": 1043, "end": 1053, "text": "However, we have released capital totaling some €30 million during the last 12 months by conducting more capital-efficient ways of doing business."}, {"start": 1054, "end": 1065, "text": "The majority of the improvement from the comparison period is a result of formed joint ventures to develop large area projects, together with RSA investments."}, {"start": 1065, "end": 1074, "text": "This allows us to reach higher volumes profitably and tie less capital in infrastructure.
"}, {"start": 1074, "end": 1082, "text": "We now operate with negative capital employed and positive cash flow, which contributes very positively to group financials."}, {"start": 1083, "end": 1093, "text": "In total, over €70 million of capital has been released during the last 12 months, demonstrating solid performance in capital release measures."}, {"start": 1093, "end": 1101, "text": "The majority of the impact is attributable to the sale of the equipment business and the ramp-down of operations in Sweden."}, {"start": 1102, "end": 1109, "text": "Also, the negative capital employed has further increased in operations in Finland."}, {"start": 1110, "end": 1119, "text": "Finally, in business premises, we are on a positive trend, and some €60 million of capital has been released over the last 12 months.
"}, {"start": 1119, "end": 1124, "text": "The largest single item remaining in the balance sheet is obviously the Triple-A mall."}, {"start": 1125, "end": 1132, "text": "The execution of the capital release actions continues to improve the return on capital employed."}, {"start": 1133, "end": 1140, "text": "Overall, we will be able to run our business profitably with significantly less capital than before."}, {"start": 1142, "end": 1144, "text": "Let's move on to the cash flow development."}, {"start": 1145, "end": 1151, "text": "Operationally, cash flow was positive in the period and continues on the right track."}, {"start": 1151, "end": 1162, "text": "However, the operating cash flow after investments includes €39 million payments for plots in countries that were acquired before 2024."}, {"start": 1163, "end": 1172, "text": "These plots strengthen our land bank in key countries and provide a basis for profitable growth in these markets in the future."}, {"start": 1173, "end": 1183, "text": "In the last 12 months, cash flow was €59 million positive, and measures to improve net working capital efficiency have yielded results."}, {"start": 1184, "end": 1188, "text": "As we have stated in our guidance for 2024,"}, {"start": 1188, "end": 1192, "text": "the operating cash flow after investments is expected to be positive.
"}, {"start": 1195, "end": 1199, "text": "If we then compare our key assets to the net interest-bearing debt,"}, {"start": 1201, "end": 1208, "text": "our underlying asset base continues to be very strong and amounts to nearly twice the gross debt."}, {"start": 1209, "end": 1216, "text": "We have a land bank of over €830 million to serve as a platform for future operations and profits."}, {"start": 1217, "end": 1226, "text": "Inventory assets under production decreased to €314 million, reflecting the declining number of apartments under construction."}, {"start": 1227, "end": 1238, "text": "Completed apartments and real estate in our inventory decreased to €470 million, due to increased sales and a lower number of apartment completions in Finland.
"}, {"start": 1239, "end": 1243, "text": "Investments were worth €279 million."}, {"start": 1245, "end": 1252, "text": "The gross debt decreased by over €130 million from the end of March 2024."}, {"start": 1253, "end": 1260, "text": "This is due to the term loan and RCF amortization, as well as the lower amount of commercial papers."}, {"start": 1262, "end": 1272, "text": "Approximately €500 million of our gross debt is related to the IFRS 16 lease liabilities, including leased plots and long maturities."}, {"start": 1272, "end": 1274, "text": "Housing company loans.
"}, {"start": 1274, "end": 1279, "text": "The adjusted net debt amounted to €290 million."}, {"start": 1281, "end": 1289, "text": "So our asset base is nearly twice the gross debt and the balance of the debt structure has improved going forward."}, {"start": 1289, "end": 1295, "text": "While the target is to operate with significantly less debt and utilize mainly project-based loans."}, {"start": 1299, "end": 1303, "text": "Next, a few words about the financing situation of the company."}, {"start": 1304, "end": 1315, "text": "We have now completed a comprehensive, multi-step financing process which included several actions and transactions during the last couple of quarters.
"}, {"start": 1315, "end": 1329, "text": "By that, we are currently in a stable position in our financing, with long maturities on the instruments in use by issuing a new €100 million green bond in June."}, {"start": 1329, "end": 1334, "text": "We effectively refinanced the matured bond, which was redeemed in April this year."}, {"start": 1335, "end": 1338, "text": "Already in Q1, we executed this."}, {"start": 1338, "end": 1350, "text": "When we executed the substantial financing arrangement, we committed to amortizing €40 million of term loans and cancelling €50 million of the revolving credit facility in use."}, {"start": 1350, "end": 1360, "text": "Consequently, we have now reduced the gross debt by €130 million compared to the end of March this year, as already mentioned.
"}, {"start": 1361, "end": 1373, "text": "As a result, our debt portfolio is now more balanced between different instruments and, more importantly, the maturities of financing instruments are significantly extended."}, {"start": 1373, "end": 1383, "text": "This enables us to focus on improving our financial performance and optimize the timing of certain capital release measures to maximize shareholder value."}, {"start": 1385, "end": 1390, "text": "We are very satisfied to have reached such a position at this phase of the cycle."}, {"start": 1391, "end": 1403, "text": "We would like to thank our owners and equity investors, as well as debt investors and financing institutions who contributed to the successful completion of the financing process."}, {"start": 1405, "end": 1408, "text": "Next, a glance at the balance sheet."}, {"start": 1409, "end": 1413, "text": "The equity ratio of the company has remained stable at 33%."}, {"start": 1414, "end": 1423, "text": "Regarding the interest-bearing debt, we are on a downward trend, €80 million lower compared to last year's Q2."}, {"start": 1423, "end": 1431, "text": "Even though there was a slight increase from the end of March 2024 due to lower cash and cash equivalents."}, {"start": 1433, "end": 1441, "text": "Gearing increased from Q1 because of the increased net debt and lowered equity due to the negative net result in Q2."}, {"start": 1441, "end": 1448, "text": "However, gearing clearly decreased from Q2 last year due to the favourable net debt development.
"}, {"start": 1449, "end": 1474, "text": "Overall, YIT is targeting to deleverage the balance sheet and return to a gearing level below 50% going forward, and the maturity structure of the interest-bearing debt only requires minor amortizations to be performed this and next year, providing stability and the possibility to focus on improving the profitability of the company, as mentioned earlier."}, {"start": 1477, "end": 1483, "text": "One of the highlights in the quarter was definitely the transformation program ongoing in the company."}, {"start": 1485, "end": 1492, "text": "The program was launched on February 23rd, and the rigorous execution of it has been a priority for the company."}, {"start": 1493, "end": 1497, "text": "We have created tangible benefits both operationally and financially."}, {"start": 1498, "end": 1505, "text": "The run-rate cost savings target of €40 million for the program was achieved ahead of schedule by the end of June.
"}, {"start": 1507, "end": 1517, "text": "Transformation-related costs have been estimated to be between 50 to 70 million in total, of which €51 million was realized by the end of Q2."}, {"start": 1519, "end": 1530, "text": "A significant item in the costs was related to the decision to partially release the leased headquarter premises for sublease to improve the efficiency of the premises used."}, {"start": 1531, "end": 1539, "text": "Also, the capital release stream of the program has progressed favorably with the actions taken by the end of June."}, {"start": 1539, "end": 1543, "text": "We have released approximately €140 million of capital."}, {"start": 1545, "end": 1552, "text": "We are determined to continue the transformation program to gain further efficiencies and other benefits during the second half of the year.
"}, {"start": 1553, "end": 1558, "text": "Hey, would you like to elaborate from your perspective on the program as well?"}]}, {"speakerId": "spk2", "sentences": [{"start": 1558, "end": 1559, "text": "Yeah, thank you, Tuomas."}, {"start": 1559, "end": 1567, "text": "And when we talk about our transformation program, it is truly a holistic transformation."}, {"start": 1567, "end": 1574, "text": "Of course, we are providing insights into the numbers of cost saving, as well as how much capital we have released."}, {"start": 1574, "end": 1578, "text": "But what we are talking about here is a holistic change.
"}, {"start": 1578, "end": 1583, "text": "We are changing our operating model structure and building new capabilities."}, {"start": 1583, "end": 1594, "text": "And if I think about those capabilities, which we have already implemented during the program lifecycle, almost 18 months that we have been running,"}, {"start": 1594, "end": 1608, "text": "we have significantly upskilled our procurement functions and our project management capabilities, which is already visible when we talk about segment performance, our commercial excellence, and so forth."}, {"start": 1608, "end": 1615, "text": "And I think when we address a transformation, there's much to do with the company culture."}, {"start": 1615, "end": 1619, "text": "And how do we, as YIT employees, see that?
"}, {"start": 1619, "end": 1622, "text": "Where is our vision of what good looks like?"}, {"start": 1622, "end": 1625, "text": "What is the right ambition level and what do we really want to achieve?"}, {"start": 1625, "end": 1628, "text": "And we have been redefining that together."}, {"start": 1628, "end": 1641, "text": "I am very pleased also about the progress of changing the company culture and bringing those great elements to our business that I know the team is capable of."}]}, {"speakerId": "spk4", "sentences": [{"start": 1641, "end": 1642, "text": "Do."}]}, {"speakerId": "spk2", "sentences": [{"start": 1642, "end": 1651, "text": "And to clarify, we have achieved this ahead of schedule, but this doesn't mark the end of our efforts."}, {"start": 1651, "end": 1664, "text": "We will continue to do this and are in the process of transforming this transformation as part of our continuous improvement, where we still see substantial potential to improve our operational efficiency and the company's performance."}]}, {"speakerId": "spk3", "sentences": [{"start": 1666, "end": 1667, "text": "Exactly. Thank you, Eric."}, {"start": 1670, "end": 1671, "text": "Moving on to the guidance..."}, {"start": 1672, "end": 1674, "text": "Our guidance remains intact."}, {"start": 1674, "end": 1683, "text": "We expect the group's adjusted operating profit for continuing operations to be between 20 and 60 million euros this year."}, {"start": 1683, "end": 1688, "text": "The operating cash flow after investments is expected to be positive."}, {"start": 1688, "end": 1695, "text": "However, we have made a clarification in the outlook regarding the housing market in Finland."}, {"start": 1695, "end": 1703, "text": "As already described, the housing AT ING market is not expected to materially improve during 2024."}, {"start": 1703, "end": 1706, "text": "The rest of the outlook remains unchanged."}, {"start": 1709, "end": 1721, "text": "So, to summarize the finance section, we completed a comprehensive, multi-step financing process and reached a stable position with long-term maturities in our financing."}, {"start": 1721, "end": 1730, "text": "This enables us to focus on improving our financial performance and optimize the timing of certain capital release measures to maximize shareholder value."}, {"start": 1731, "end": 1740, "text": "We will continue to execute the capital release plan as the top priority to improve cash flow and return on capital employed at YIT."}, {"start": 1741, "end": 1751, "text": "We have already achieved the set target for the transformation program and are determined to continue the program to gain further efficiencies and other benefits during the second half of the year."}, {"start": 1753, "end": 1754, "text": "This concludes my part."}, {"start": 1754, "end": 1755, "text": "So handing over to you."}]}, {"speakerId": "spk2", "sentences": [{"start": 1755, "end": 1757, "text": "Hey, thank, you Tommas."}, {"start": 1760, "end": 1779, "text": "And now we have both covered here in great detail our financial result, transformation programs, and all the actions to improve what we have been doing on the financing side. It is highly important to provide that frame and context in which we are operating as a company."}, {"start": 1779, "end": 1786, "text": "One really important point I want to emphasize is our greatest asset is our employees."}, {"start": 1787, "end": 1793, "text": "Even during this type of market cycle, we have continued to invest in our people."}, {"start": 1793, "end": 1796, "text": "We continue to provide training positions."}, {"start": 1797, "end": 1806, "text": "We have been focusing on the safety, holistic well-being of our employees, and our teams, so that we can enhance the company culture."}, {"start": 1807, "end": 1810, "text": "The work and the results are clearly important for us."}, {"start": 1812, "end": 1818, "text": "For one thing, it's already for the sites where we have the construction activities ongoing."}, {"start": 1818, "end": 1821, "text": "It's improving the way of working and the safety."}, {"start": 1821, "end": 1848, "text": "But at the same time, as we have been providing training, for example, for people who have been on temporary layoffs, we are able to ensure that we have talented professionals ready to come back to work as the timing is right, to do the startup so that we have our team in place and everything ready as we are accelerating the startups of housing projects in Finland as well."}, {"start": 1850, "end": 1855, "text": "But now it starts to be time to wrap up and recap our business priorities for the future."}, {"start": 1855, "end": 1866, "text": "Before opening to potential questions on the housing segment, we remain focused on boosting our sales throughout the operating countries and closing deals with consumers."}, {"start": 1867, "end": 1874, "text": "We believe there is a good opportunity to continue on an increasing trend and further increase our market share."}, {"start": 1876, "end": 1880, "text": "Consumer startups in Finland will take place as the timing is right."}, {"start": 1880, "end": 1886, "text": "We have a good level of reservations on projects, and decision-making is in our own hands."}, {"start": 1886, "end": 1894, "text": "How to proceed? The infrastructure segment tendering is active, and we see a lot of project opportunities for us in the market."}, {"start": 1895, "end": 1903, "text": "We need to be prudent in our tendering and continue to seek operational efficiencies going forward to positively surprise our customers."}, {"start": 1904, "end": 1907, "text": "The infrastructure segment already has a strong and healthy order book."}, {"start": 1907, "end": 1911, "text": "Now, we see growth potential in this segment in the coming years.
"}, {"start": 1911, "end": 1916, "text": "Business premises are up to speed to improve operational performance."}, {"start": 1916, "end": 1925, "text": "I'm pleased that we have, generally speaking, projects under control, and net project deviations are turning positive."}, {"start": 1925, "end": 1933, "text": "Our order book's healthiness is improving, and we continue to focus on complex, demanding projects that are suitable for our competencies."}, {"start": 1934, "end": 1939, "text": "All in all, we remain positive about the future ahead of us."}, {"start": 1939, "end": 1947, "text": "Performance is supported by the actions taken, the competencies of our people, and the successful progress of the transformation program.
"}, {"start": 1949, "end": 1953, "text": "So, moderator, now is the time to open the line for potential questions."}, {"start": 1954, "end": 1954, "text": "Thank except you."}]}, {"speakerId": "spk5", "sentences": [{"start": 1961, "end": 1968, "text": "If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue."}, {"start": 1968, "end": 1974, "text": "If you wish to withdraw your question, please dial pound key six on your telephone keypad."}, {"start": 1981, "end": 1985, "text": "The next question comes from Anthony Rousey from CB."}, {"start": 1986, "end": 1987, "text": "Please go ahead."}]}, {"speakerId": "spk6", "sentences": [{"start": 1988, "end": 1989, "text": "Hey, Orlando. Thank you."}, {"start": 1989, "end": 1991, "text": "Hey, congratulations on the presentation."}, {"start": 1992, "end": 1996, "text": "A couple of questions from me, and I'll start with the guidance."}, {"start": 1996, "end": 2005, "text": "Uh, what makes you so confident that you will actually achieve positive cash flow after investments this year?"}, {"start": 2005, "end": 2015, "text": "Like, is it based on your underlying business, or do you foresee something extraordinary happening in H2?
"}]}, {"speakerId": "spk3", "sentences": [{"start": 2018, "end": 2019, "text": "Thank you."}, {"start": 2019, "end": 2020, "text": "Honestly, I can take this one."}, {"start": 2020, "end": 2024, "text": "So, regarding the operating cash flow."}, {"start": 2024, "end": 2030, "text": "Definitely, the major source for the operating cash flow are our businesses."}, {"start": 2030, "end": 2033, "text": "And as described in the presentation."}, {"start": 2034, "end": 2042, "text": "Three of the four so-called cylinders of our engine are working and providing cash flow."}, {"start": 2042, "end": 2047, "text": "So definitely, that's the major source for the operating cash flow."}, {"start": 2047, "end": 2056, "text": "And as mentioned, for example, the infrastructure business is now operating at a positive cash flow with negative capital employed."}, {"start": 2056, "end": 2058, "text": "To give you an example."}, {"start": 2058, "end": 2060, "text": "Uh, that's the major source."}, {"start": 2060, "end": 2071, "text": "Then we will support our cash flow development by continuing the execution of the capital release program."}]}, {"speakerId": "spk6", "sentences": [{"start": 2074, "end": 2079, "text": "Okay, thank you."}, {"start": 2080, "end": 2091, "text": "Can you remind us about the schedule regarding the closure of the infrastructure business region and what kind of gradual decline we are going to see?"}, {"start": 2092, "end": 2098, "text": "And also, if it's going to trigger any one-time costs or not."}, {"start": 2098, "end": 2100, "text": "Thanks."}]}, {"speakerId": "spk4", "sentences": [{"start": 2101, "end": 2101, "text": "So, if I."}]}, {"speakerId": "spk2", "sentences": [{"start": 2103, "end": 2128, "text": "Generally speaking, if you look at what we have been doing, part of the transformation is to really build the onion and show where we are, demonstrating how well the Finnish operations are going."}, {"start": 2128, "end": 2131, "text": "Uh, that project that has."}, {"start": 2131, "end": 2136, "text": "It was taken quite some time ago."}, {"start": 2136, "end": 2142, "text": "Therefore, we had a one-time, wide-impact profit there."}, {"start": 2142, "end": 2160, "text": "Not many cash-related items."}, {"start": 2160, "end": 2164, "text": "So the impact of that is getting less and less."}, {"start": 2165, "end": 2194, "text": "What we are currently doing involves deploying many of our Finnish teams, including expatriates, to operate projects in Sweden to ensure that we are, first of all, keeping our commitments and maintaining a good operational pace on those projects."}, {"start": 2195, "end": 2208, "text": "So that's where we stand now, of course, when you are closing the project and ensuring that all the last details and discussions have been completed."}, {"start": 2208, "end": 2211, "text": "So, these types of one-time items may occur."}, {"start": 2211, "end": 2214, "text": "And now those took place in the second quarter of the year."}]}, {"speakerId": "spk6", "sentences": [{"start": 2218, "end": 2219, "text": "Okay."}, {"start": 2219, "end": 2220, "text": "That was all for me."}]}, {"speakerId": "spk5", "sentences": [{"start": 2228, "end": 2231, "text": "The next question comes from Svante Crockford from Nordica."}, {"start": 2232, "end": 2233, "text": "Welcome, everyone, to our financial webcast. Today, we are pleased to present an overview of YIT Corporation's performance for the first half of 2024."}]}, {"speakerId": "spk7", "sentences": [{"start": 2236, "end": 2240, "text": "Good morning. Thank you to everyone for the presentation."}, {"start": 2240, "end": 2242, "text": "A couple of questions."}, {"start": 2243, "end": 2251, "text": "Also, a question regarding the guidance, specifically the EBIT guidance of 20 to 60 million, which remains unchanged."}, {"start": 2252, "end": 2262, "text": "Could you elaborate a bit on the logic here, as you essentially downgraded the Q4 outlook for housing in Finland?"}, {"start": 2262, "end": 2265, "text": "Q4 has typically been an important quarter."}, {"start": 2265, "end": 2268, "text": "And obviously, we have completions in Finland as well."}, {"start": 2268, "end": 2282, "text": "So, should we interpret this as seeing CEE politics and CEE infrastructure and business premises outlook being better for H2 than earlier?"}]}, {"speakerId": "spk3", "sentences": [{"start": 2284, "end": 2286, "text": "Thank you for the question."}, {"start": 2286, "end": 2287, "text": "I can take this one."}, {"start": 2287, "end": 2305, "text": "First of all, the outlook and the guidance for this year are closely related, somewhat repeating what I already mentioned regarding the cash flow.
"}, {"start": 2305, "end": 2314, "text": "Three of the four cylinders in the engine are operational, providing cash flow and profits."}, {"start": 2314, "end": 2322, "text": "Profits as well. So, this relates to the Finnish housing market."}, {"start": 2322, "end": 2330, "text": "As we say now, we don't expect the market to materially improve."}, {"start": 2330, "end": 2336, "text": "This expectation is also reflected in the guidance and the range that we have provided.
"}]}, {"speakerId": "spk4", "sentences": [{"start": 2337, "end": 2337, "text": "Yes."}]}, {"speakerId": "spk2", "sentences": [{"start": 2338, "end": 2342, "text": "If I may continue, just a few words on the individual businesses."}, {"start": 2342, "end": 2352, "text": "The market in Finland for the housing sector has been weak for quite some time, and it was the fifth consecutive quarter that we still increased our sales."}, {"start": 2352, "end": 2361, "text": "So, it has a lot to do with our own actions that we have still managed to undertake, even though the market conditions have not improved."}, {"start": 2362, "end": 2364, "text": "This includes individual sales efforts.
"}, {"start": 2364, "end": 2374, "text": "We are also present in all the major cities, and therefore, there are city differences between micro-markets."}, {"start": 2374, "end": 2380, "text": "As discussed, for example, in Tampere and Turku,"}, {"start": 2380, "end": 2384, "text": "the demand picture is different than what we see in the capital region."}, {"start": 2384, "end": 2392, "text": "However, the capital region in Finland has driven the largest volume, which represents the market as a whole."}, {"start": 2392, "end": 2396, "text": "Then when we look at our politics and strategies,
"}, {"start": 2396, "end": 2400, "text": "the completions are tilted towards the second half of the year."}, {"start": 2400, "end": 2402, "text": "In a different aspect, business premises,"}, {"start": 2402, "end": 2406, "text": "we are very pleased with the trend."}, {"start": 2406, "end": 2411, "text": "Business premises have been impacted by the fair value changes on the balance sheet."}, {"start": 2412, "end": 2418, "text": "However, project-level execution has been improving.
"}, {"start": 2418, "end": 2421, "text": "As you can see from the finished infrastructure,"}, {"start": 2421, "end": 2427, "text": "it has already been trending above our rolling developments target of 4%."}, {"start": 2427, "end": 2431, "text": "This is a good place to further improve."}, {"start": 2431, "end": 2439, "text": "So that is how we see the businesses and the performance of those this year."}]}, {"speakerId": "spk7", "sentences": [{"start": 2443, "end": 2453, "text": "Okay. Thank, A question regarding land plot investments worth €39 million in Q2.
"}, {"start": 2454, "end": 2462, "text": "It's difficult for us to predict what is coming in the future quarters or years regarding timing."}, {"start": 2462, "end": 2473, "text": "I think you have disclosed the total amounts, but can you comment on any potential commitments that we need to meet in the near to meet future?"}]}, {"speakerId": "spk3", "sentences": [{"start": 2474, "end": 2478, "text": "Yes. Thank, Yes."}, {"start": 2478, "end": 2490, "text": "As we described, €39 million of the cash flow relates to the payments for plots that were committed before this year in key countries."}, {"start": 2490, "end": 2495, "text": "We will continue to invest in key countries."}, {"start": 2495, "end": 2499, "text": "Uh, with the slow pace continuing going forward as well."}, {"start": 2499, "end": 2504, "text": "Uh, but also if we look at the milestone payments of the committed plots."}, {"start": 2504, "end": 2508, "text": "So, uh, we see a stable way ahead."}, {"start": 2508, "end": 2518, "text": "We don't anticipate any major payments for the already committed plots in the coming quarters."}]}, {"speakerId": "spk7", "sentences": [{"start": 2522, "end": 2534, "text": "Thank you. And then, concerning housing, the completion issues or postponements that you mentioned, are the reasons similar to before?"}]}, {"speakerId": "spk2", "sentences": [{"start": 2535, "end": 2540, "text": "Yeah. It's not related to construction project management."}, {"start": 2540, "end": 2550, "text": "It is about the timing of the documentation, and it was completed in the very early part of July."}, {"start": 2551, "end": 2554, "text": "So that was what caused the postponishment."}, {"start": 2554, "end": 2555, "text": "Reason for the delay."}]}, {"speakerId": "spk7", "sentences": [{"start": 2558, "end": 2575, "text": "Thank.?."}]}, {"speakerId": "spk4", "sentences": [{"start": 2576, "end": 2576, "text": "And looking at the housing and investor side, do you see any demand for good starter investor projects in the near future?"}]}, {"speakerId": "spk2", "sentences": [{"start": 2576, "end": 2583, "text": "Uh."}, {"start": 2583, "end": 2596, "text": "In Finland, if we look at it, it is more likely to see investor project demand pick up in 2024."}, {"start": 2596, "end": 2604, "text": "There are more projects starting on this, the so-called governmental era projects."}, {"start": 2604, "end": 2615, "text": "I see that individual investors are purchasing either individual apartments or bundle deals."}, {"start": 2616, "end": 2620, "text": "There is also activity on the market where investors are buying fully rented buildings and shifting them between portfolios."}, {"start": 2620, "end": 2623, "text": "Uh, so we expect that it's more likely that these activities will take place in 2024."}]}, {"speakerId": "spk7", "sentences": [{"start": 2626, "end": 2635, "text": "Involving startups.
"}, {"start": 2635, "end": 2638, "text": "Thank you. Regarding the last question about your headquarters' sublease and its $20 million impact."}, {"start": 2638, "end": 2639, "text": "Could you clarify? I might have missed that."}, {"start": 2640, "end": 2646, "text": "I must have misread the news."}, {"start": 2646, "end": 2648, "text": "Uh. I haven't seen that announcement earlier."}, {"start": 2648, "end": 2651, "text": "Could you elaborate a bit on what that includes?"}]}, {"speakerId": "spk2", "sentences": [{"start": 2652, "end": 2656, "text": "Yeah. To discuss operational items first, if you consider the numbers there."}, {"start": 2656, "end": 2666, "text": "So. As part of our transformation program, we are assessing the need and usage of our premises and determining how much space we need."}, {"start": 2666, "end": 2678, "text": "Our own headquarters was built in the 90s and expanded at a time when the company was operating at a significantly different scale."}, {"start": 2678, "end": 2692, "text": "We have now assessed how much space we can allocate for subleasing purposes, and this operational change was implemented as part step of the transformation program."}, {"start": 2693, "end": 2696, "text": "And on the numbers side, if you review that."}]}, {"speakerId": "spk3", "sentences": [{"start": 2696, "end": 2706, "text": "Yes. As mentioned previously, it is related to more efficient use of our own premises."}, {"start": 2706, "end": 2712, "text": "That really is part of the space we have available for sublease."}, {"start": 2712, "end": 2715, "text": "And we have, uh, done that."}, {"start": 2715, "end": 2723, "text": "So we have, uh, written down, uh, part of the right of use asset as part of that transaction."}, {"start": 2723, "end": 2726, "text": "And that's basically what we can disclose here."}]}, {"speakerId": "spk7", "sentences": [{"start": 2729, "end": 2730, "text": "Okay. Fair enough. Thanks."}, {"start": 2730, "end": 2731, "text": "That's all for me.
"}]}, {"speakerId": "spk2", "sentences": [{"start": 2731, "end": 2732, "text": "Thank you."}]}, {"speakerId": "spk5", "sentences": [{"start": 2739, "end": 2743, "text": "The next question comes from Emily Moanin from Carnegie."}, {"start": 2744, "end": 2745, "text": "Please go ahead."}]}, {"speakerId": "spk8", "sentences": [{"start": 2748, "end": 2752, "text": "Yeah. Hi. Hi. Thanks for taking my questions."}, {"start": 2752, "end": 2758, "text": "Just to continue on that housing side, I saw that some competitors have sold apartments to investors."}, {"start": 2759, "end": 2764, "text": "But could you also do that if you wanted to in Finland or is it still closed off?"}]}, {"speakerId": "spk2", "sentences": [{"start": 2766, "end": 2774, "text": "So, there is, if you look at the overall capacity, investors' capacity on the market."}, {"start": 2774, "end": 2781, "text": "So there is a lot of capacity and a lot of appetite toward the homes in Finland."}, {"start": 2781, "end": 2786, "text": "And definitely, we could execute such deals."}, {"start": 2786, "end": 2802, "text": "What we are balancing is the attractiveness of those deals compared to the timing of selling the apartments to the consumer market.
"}, {"start": 2802, "end": 2809, "text": "But in case we would like to, yes, there is a capacity and there is such an option available."}]}, {"speakerId": "spk8", "sentences": [{"start": 2813, "end": 2818, "text": "Okay. In that case, I assume that, with consumers, you get higher prices."}, {"start": 2819, "end": 2825, "text": "You haven't sold out at a loss yet, even though in Finland you were making a loss on adjusted EBIT."}]}, {"speakerId": "spk2", "sentences": [{"start": 2825, "end": 2835, "text": "If you then look at the completion this year of 250 units and our inventory is declining all the time."}, {"start": 2835, "end": 2841, "text": "And we are having a very minor amount of completions during 2025."}, {"start": 2841, "end": 2857, "text": "So we are balancing now the demand and supply of those apartments in the different areas, in such a way that we are not ending up in a situation where we have basically nothing to sell before the lead time of new apartments to the market.
"}, {"start": 2857, "end": 2863, "text": "So that's also one factor in that balancing equation."}, {"start": 2863, "end": 2875, "text": "And also, when you look at all the unsold apartments, 867, the vast majority of those are today in the capital region here in Helsinki."}, {"start": 2875, "end": 2885, "text": "And the market situation for, you know, Tampere, Turku, the eastern part of Finland is actually quite different compared to what it is in the capital area."}, {"start": 2885, "end": 2893, "text": "So, there is also that to be considered when it comes to the operative losses.
"}, {"start": 2893, "end": 2894, "text": "So yes, we are taking continuous actions."}, {"start": 2894, "end": 2903, "text": "We have now been reducing the losses on a quarterly basis for the Finnish operations."}, {"start": 2903, "end": 2914, "text": "But it is a consequence of scaling down production by 50% from the previous year, as it is visible on both the production and sales sides."}, {"start": 2914, "end": 2928, "text": "And we see that as we are returning to more normal market conditions, that part of our engine starts to operate and function in a normal manner."}]}, {"speakerId": "spk3", "sentences": [{"start": 2930, "end": 2932, "text": "And also, if I may continue."}, {"start": 2932, "end": 2936, "text": "So, as has been our planning strategy."}, {"start": 2936, "end": 2953, "text": "So, the order of priority in the sales has been first the consumer apartment sales, then smaller bundle deals, and as a third tier, larger investor sales if needed and if attractive deals are available."}]}, {"speakerId": "spk8", "sentences": [{"start": 2957, "end": 2965, "text": "Okay. Uh, can you just remind me, how do you expect the joint ventures in the CEE countries to impact your profitability?"}]}, {"speakerId": "spk3", "sentences": [{"start": 2970, "end": 2971, "text": "Yeah, I can take this one."}, {"start": 2971, "end": 3005, "text": "So what we have now done in three countries has been forming joint ventures, mainly with RSA investments, regarding larger area projects, tying quite a lot of capital and by forming these joint ventures we are actually capable of increasing our volumes and profits, and tying less capital."}, {"start": 3005, "end": 3008, "text": "So that's, uh, that's basically the plan."}, {"start": 3008, "end": 3017, "text": "And of course, the profits from the joint ventures and associated companies are then visible in our P&L."}, {"start": 3018, "end": 3041, "text": "I think the thing with the joint venture is really about performing business with a lighter balance sheet and enabling volume so that we can optimize the return on capital employed in the countries, and, of course, on a group level as well."}]}, {"speakerId": "spk4", "sentences": [{"start": 3041, "end": 3041, "text": "Yeah."}]}, {"speakerId": "spk2", "sentences": [{"start": 3042, "end": 3046, "text": "And thanks to Tuomas, and uh, may I invite Emil to comment on it."}, {"start": 3046, "end": 3057, "text": "So, we are making a decision on a project-by-project basis there to start those, and achieving a very healthy IRR for us as well as for the investors is always a key."}, {"start": 3057, "end": 3061, "text": "So, those are the criteria."}, {"start": 3061, "end": 3065, "text": "What we are using to start the project within the joint venture structures."}]}, {"speakerId": "spk8", "sentences": [{"start": 3069, "end": 3070, "text": "Excellent."}, {"start": 3070, "end": 3071, "text": "That's all for me."}, {"start": 3071, "end": 3071, "text": "Emily."}]}, {"speakerId": "spk5", "sentences": [{"start": 3078, "end": 3081, "text": "The next question comes from Olli Kapanen from India."}, {"start": 3082, "end": 3083, "text": "Welcome everyone to our financial webcast for the first half of 2024."}]}, {"speakerId": "spk8", "sentences": [{"start": 3086, "end": 3089, "text": "Yeah."}]}, {"speakerId": "spk9", "sentences": [{"start": 3089, "end": 3096, "text": "I have a question for myself."}, {"start": 3096, "end": 3102, "text": "Was there something kind of out of the ordinary in interest operating profitability in the future?"}]}, {"speakerId": "spk2", "sentences": [{"start": 3104, "end": 3107, "text": "Thank you all. Uh. There wasn't."}, {"start": 3108, "end": 3111, "text": "So, it was a good quarter."}, {"start": 3112, "end": 3130, "text": "Generally speaking, when you look at this type of contracting business, whether it's infrastructure or business premises, the yield looks like it's somewhere clearly above 4% for their businesses."}, {"start": 3130, "end": 3136, "text": "We have now reached a point where, internally, we have a higher ambition level for sure."}, {"start": 3136, "end": 3148, "text": "There weren't any extraordinary items within that quarter that should be discounted for the great work that the team has done."}]}, {"speakerId": "spk9", "sentences": [{"start": 3152, "end": 3155, "text": "And can I ask one more question on the infrastructure segment?"}, {"start": 3155, "end": 3163, "text": "Do you think, or is your assumption that, normally in the infrastructure business, Q2 and Q3 have the best orders?"}]}, {"speakerId": "spk10", "sentences": [{"start": 3164, "end": 3165, "text": "Well, if."}]}, {"speakerId": "spk2", "sentences": [{"start": 3165, "end": 3172, "text": "I'll take a bit of a longer perspective on the horizon there."}, {"start": 3172, "end": 3181, "text": "Um, I think the Q1 performance was the weakest, uh, overall. Last year, we had a quite strong Q4 as well in infrastructure."}, {"start": 3182, "end": 3186, "text": "Um, we continue to improve our operational efficiencies."}, {"start": 3186, "end": 3191, "text": "And the team is, is really up to speed in terms of project execution."}, {"start": 3191, "end": 3199, "text": "And today we have achieved the 40 million, uh, cost savings from our transformation program."}, {"start": 3199, "end": 3201, "text": "But that is not yet fully visible in all of our businesses.
"}, {"start": 3201, "end": 3206, "text": "And if you take that 40 million and compare it to our revenue, what we have had."}, {"start": 3206, "end": 3215, "text": "So there are also operational efficiencies in our operating model that will then benefit all of our businesses."}, {"start": 3215, "end": 3226, "text": "So therefore, I remain very positive when looking at our performance going forward."}]}, {"speakerId": "spk9", "sentences": [{"start": 3231, "end": 3238, "text": "Okay. Thanks. Uh, then lastly, just a question about the debt structure now going forward."}, {"start": 3238, "end": 3246, "text": "Could you remind us what the covenants in your existing debt are, and how are you handling those at the moment?
"}, {"start": 3246, "end": 3256, "text": "Would there be a problem with those if you cannot improve your profitability by the year end, which might have been the assumption when the year started."}]}, {"speakerId": "spk3", "sentences": [{"start": 3258, "end": 3260, "text": "Thank you. I can take this one."}, {"start": 3260, "end": 3273, "text": "Uh, regarding covenants, we are not disclosing the exact details or specifics about the covenants, but generally speaking, we are in a very stable situation with our covenants going forward."}, {"start": 3274, "end": 3278, "text": "Uh, also, when we think about the short- and long-term."}, {"start": 3278, "end": 3287, "text": "We look at the liquidity situation and also, the now available funding for the future."}, {"start": 3287, "end": 3291, "text": "Uh, future operations are starting up and actually accelerating here in Finland as well.
"}, {"start": 3291, "end": 3300, "text": "So we don't see any challenges regarding the profit-related or cash flow-related governance."}]}, {"speakerId": "spk9", "sentences": [{"start": 3305, "end": 3306, "text": "Okay, thanks. Thanks."}, {"start": 3306, "end": 3308, "text": "That's all for me."}]}, {"speakerId": "spk4", "sentences": [{"start": 3309, "end": 3309, "text": "Thank vou, Oliver."}]}, {"speakerId": "spk5", "sentences": [{"start": 3317, "end": 3322, "text": "There are no more questions at this time, so I hand the conference back to the speakers.
"}]}, {"speakerId": "spk1", "sentences": [{"start": 3324, "end": 3326, "text": "As there seems to be no more questions."}, {"start": 3326, "end": 3331, "text": "Uh, we thank you all for participating and wish you a great rest of the day."}, {"start": 3332, "end": 3333, "text": "Thank you. Thank you."}]}], "speakers": [{"speakerId": "spk1", "name": "Nick Dean"}, {"speakerId": "spk2", "name": "Heikki Vuorenmaa"}, {"speakerId": "spk3", "name": "Tuomas Mäkipeska"}, {"speakerId": "spk4", "name": "Unknown 1"}, {"speakerId": "spk5", "name": "Operator"}, {"speakerId": "spk6", "name": "Unknown 2"}, {"speakerId": "spk7", "name": "Unknown 3"}, {"speakerId": "spk8", "name": "Unknown 4"}, {"speakerId": "spk9", "name": "Unknown 5"}, {"speakerId": "spk10", "name": "Unknown 6"}], "id": "66a360242690eb8f46b32887", "createdAt": "2024-07-26T08:36:52.311Z", "updatedAt": "2024-07-26T08:36:52.311Z", "langCode": "en", "transcriptType": "ENHANCED", "amberscriptJobId": null, "speechmaticsJobId": null, "eventId": "66669b11674b098d8dacd86a"}