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STOCK EXCHANGE RELEASE August 20, 2009 09:00
YIT INCREASES ITS GROWTH TARGET
YIT Corporation's Board of Directors has confirmed the Group's strategy for 2010-2012 on August 19, 2009. The key strategic target is profitable growth. The Group's annual revenue growth target has been increased to 5-10 per cent on average. Previously, the target was positive growth in revenue. The Group's other strategic target levels remain unchanged, and they are: return on investment of 20 per cent, operating cash flow after investments must be sufficient for dividend payout and reduction of debt, equity ratio of 35 per cent and dividend payout of 40 to 60 per cent of net profit for the period.
Service and maintenance operations are the focus of growth in Building and Industrial Services
In Building and Industrial Services, YIT aims to be the leading provider of technical system maintenance and a forerunner in energy-saving services in the Nordic countries and Central Europe. The target is to increase the service and maintenance operations faster than other operations, both organically and through business acquisitions.
Growth in Construction Services Finland to focus on housing and infrastructure
In Construction Services Finland, YIT's aim is to strengthen its position in all of its three key construction areas - housing, business premises and infrastructure. With regard to residential construction, development projects will be increased so that the turnover of capital is accelerated. In business premises, the focus will be on developing and repairing existing properties during the beginning of the strategy period. In infrastructure services, the market position will be reinforced and maintenance activity will be increased.
Use of invested capital will be made more effective in Russia
In Russia, YIT primarily pursues profitability and controlled growth. YIT has invested capital mainly in residential development projects and related plots. The use of capital will be made more effective with an extensive action programme that has been initiated. The strong need for housing has not decreased, and the demand outlook for residential units aimed at YIT's customer segment is favourable in the long-term, which provides opportunities for growth.
In the Baltic countries and Central Eastern Europe, YIT will aim to take advantage of emerging market opportunities.
Capital market day on September 24
YIT will arrange a capital market day for investors and analysts on September 24, 2009, to present the Group's strategy. A webcast of the presentation given by President and CEO Juhani Pitkäkoski can be viewed live on the day in question starting at 9 a.m. (Finnish time, EEST) at www.yitgroup.com/webcast and afterwards as a recording at the same address.
For further information, please contact: Juhani Pitkäkoski, President and CEO, +358 20 433 3301, juhani.pitkakoski@yit.fi Petra Thorén, Senior Vice President, Investor Relations, +358 40 764 5462, petra.thoren@yit.fi
YIT CORPORATION
Virva Salmivaara Senior Vice President, Corporate Communications
Distribution: NASDAQ OMX, principal media, www.yitgroup.com