Listing prospectus for YIT’s EUR 100 million secured green notes is available and the amendments to the terms of EUR 100 million green notes 2026 have become effective
STOCK EXCHANGE RELEASE SEPT. 23, 2004 15:15 1 (2)
YIT AMENDS ITS STRATEGIC TARGET LEVELS TO BETTER MATCH THE GROUPS CURRENT STRUCTURE
YIT Corporations Board of Directors has amended its financial target levels for the 2005-2007 strategic period. The target level for return on investment will be raised from 18 to 20 per cent.
The target level for the equity ratio will be lowered from 40 to 35 per cent. The growth target for net sales remains set at average annual growth of 5-10 per cent. The target for dividends will remain at 30-50 per cent of profit after taxes and minority interest.
The new target level for return on investment is a better fit for the objectives set for the strategic period and supports the operational logic of YITs service strategy. After the Building Systems acquisition in summer 2003, the YIT Groups need for operating capital has declined in relative terms because the acquired business is labour-intensive and does not require large investments. The cash flow from business operations is good. The share of the Groups net sales accounted for by Building System services rose to 43 per cent in the first half of 2004.
The lowering of the equity ratio target from 40 to 35 per cent better matches YITs optimal capital structure and risk level. The changeover to IFRS in accounting practices at the beginning of 2005 also reduces the equity ratio, as the companys shareholders equity will decline.
The growth in the relative share of net sales accounted for by the maintenance and servicing business, good cash flow and the stable earnings trend have reduced the Groups risk level. In the first half of 2004, 32 per cent of net sales were generated by the maintenance and servicing business. Operations in different countries also serve to reduce the risk level. In early 2004, 61 per cent of the Groups net sales came from Finland, 29 per cent from the other Nordic countries, 5 per cent from the Baltic countries and 3 per cent from Russia.
YIT CORPORATION
Veikko Myllyperkiö Vice President, Corporate Communications
For additional information, contact: Esko Mäkelä, Executive Vice President, tel. +358 20 433 2258, esko.makela@yit.fi 2 (2)
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