YIT AMENDS ITS STRATEGIC TARGET LEVELS

YIT AMENDS ITS STRATEGIC TARGET LEVELS

YIT Corporation’s Board of Directors has amended the Group’s financial target levels. The revised financial target levels correspond to the strategic emphases set for business operations.
The revenue growth target was bolstered from 5-10 per cent to 10 per cent annually on average. The target level for return on investment was raised from 20 to 22 per cent. The target for the dividend payout ratio was increased from 30-50 to 40-60 per cent.
The target level for the equity ratio was kept at 35 per cent.

YIT will continue its strategy of profitable growth. In order to improve profitability and cash flow, the share of business operations accounted for by services close to end-users and long- term service agreements will be increased.

Revenue growth is sought by rounding out the service portfolio in building systems services in the Nordic and Baltic countries, increasing residential construction in Russia and the Baltic countries as well as expanding the offerings of Industrial and Network Services in YIT’s business territories and through outsourcing of network operators and industry. Growth potential is also seen in services offered directly to consumers - which have a high value-added content - and in different areas of the technical infrastructure of society.

The target level for return on investment reflects the steering of growth into business areas that yield higher operating profit and which are labour-intensive and do not require large investments.
In addition, capital is employed effectively in the more capital intensive developer housing production.

The equity ratio target of 35 per cent reflects YIT’s optimal capital structure and risk level.

The business emphases will generate good cash flow, which will make it possible to raise the dividend payout ratio. The company aims to continue its active dividend policy and to provide a steadily evolving flow of dividends to its shareholders.

Presentation of the strategy at the Capital Markets Day in Vilnius

Hannu Leinonen - YIT’s Group CEO effective January 1, 2006 - will present the Group’s strategy at the Capital Markets Day, which will be held in Vilnius, Lithuania, from October 5 - 6, 2005. A webcast recording of the presentation and Capital Markets Day materials will be available on the company’s Internet site, www.yit.fi, as from October 5.

YIT CORPORATION

Veikko Myllyperkiö Vice President, Corporate Communications

                                                        

For additional information, contact: Hannu Leinonen, Group CEO as from January 1, 2006,  tel. +358 20 433 3301, hannu.leinonen@yit.fi Sakari Toikkanen, Executive Vice President as from January 1, 2006, tel. +358 20 433 2336, sakari.toikkanen@yit.fi

Esko Mäkelä, Executive Vice President, tel. +358 20 433 2258, esko.makela@yit.fi Veikko Myllyperkiö, Vice President, Corporate Communications,  tel. +358 20 433 2297, veikko.myllyperkio@yit.fi Petra Thorén, Manager, Investor Relations, tel. +358 20 433 2635, petra.thoren@yit.fi

 Distribution: Helsinki Stock Exchange, principal media, www.yit.fi