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- Stock Exchange Release
- 06.02.2009 07:05 CET
YIT CORPORATION BOARD OF DIRECTORS CONFIRMED NEW STRATEGIC TARGETS
STOCK EXCHANGE RELEASE FEB 6, 2009 AT 8:05
YIT CORPORATION BOARD OF DIRECTORS CONFIRMED NEW STRATEGIC TARGETS
The Board of Directors of YIT Corporation confirmed the financial targets for the strategy period 2009-2011 on February 5, 2009. The Group's strategic targets are: positive revenue growth, return on investment of 20 per cent by end of strategy period, operating cash flow after investments during strategy period sufficient for dividend payout and repayment of debt, equity ratio of 35 per cent and dividend payout of 40 to 60 per cent of net profit for the period.
The changes in the targets emphasise the importance of the profitability development and capital expenditure efficiency as well as positive cash flow in today's market conditions. The cash flow target was set for the first time at Group level. The previous numerical revenue growth target of 10 per cent on average per year was abandoned. The return on investment target was set at 20 per cent, versus the previous target of 22 per cent. The targets for equity ratio and dividend payout remained unchanged. The operating profit target of 9 per cent of revenue was abandoned. Similarly, the separate target set for the Russian operations - average annual revenue growth of 50 per cent during the period 2006-2009 - was abandoned as the forecastability of the country's economic development in the next few years has weakened substantially.
In 2008, YIT Group's revenue growth was 6 per cent, return on investment was 17.5 per cent, operating cash flow after investments amounted to EUR -19.4 million, the equity ratio was 30.7 per cent and the Board's proposal for dividend payout for 2008 is 47.6 per cent.
For further information, please contact: Sakari Ahdekivi, Chief Financial Officer, +358 20 433 2258, sakari.ahdekivi@yit.fi Petra Thorén, Senior Vice President, Investor Relations, +358 40 764 5462, petra.thoren@yit.fi
YIT CORPORATION
Veikko Myllyperkiö Senior Vice President, Corporate Communications
Distribution: NASDAQ OMX, main media, www.yitgroup.com