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 AUGUST 19, 2010 AT 9:00 A.M.
YIT INCREASES ITS REVENUE GROWTH TARGET
YIT Corporation's Board of Directors confirmed the Group's strategy for 2011-2013 on August 18, 2010. The key strategic target is profitable growth. The Group's annual revenue growth target has been increased to more than 10 per cent on average. The previous target was an average annual revenue growth of 5-10 per cent. The Group's other strategic target levels remain unchanged: 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.
Growth opportunities in current and new markets
YIT seeks growth by strengthening its local market position and through geographical expansion to new countries. Growth will be sought both through acquisitions and organically. The business portfolio will be developed so that YIT will be able to offer its customers an extensive range of services in all project phases.
Growth focus of Building and Industrial Services will be on service and maintenance operations
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. Service and maintenance operations will be increased at a faster rate than other operations. YIT aims to offer all services related to all building equipment systems close to its customers.
Growth focus of Construction Services will be on own residential development projects
In Construction Services, YIT's aim is to reinforce its position in Finland in all of its three key construction segments - residential, business premises and infrastructure. YIT aims to be a forerunner in the Finnish residential market, offering its customers the best service. In the business premise and infrastructure markets, the aim is to increase the market share by meeting customer needs accurately and competitively.
In Russia, residential production will be increased according to market demand in the current cities, and reputation as a reliable residential developer will be strengthened. In the Baltic and Central Eastern European countries, residential and business premise construction will be increased. Capital turnover will be improved also in the future.
Improving profitability remains a key objective
Currently, the Group's return on investments falls short of the target level and was at the end of June 10.7 per cent from the previous 12 months. The Group's return on investment target remains unchanged and is 20 per cent. Capital turnover will be made more efficient. The importance of operating cash flow is emphasised, regardless of economic cycles. Good profitability and cash flow enable increasing dividends in line with the target.
Capital market day on September 2, 2010 in Stockholm
YIT will arrange a capital market day for investors and analysts on September 2, 2010, 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. 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 Hanna-Maria Heikkinen, Vice President, Investor Relations, +358 40 826 2172, hanna-maria.heikkinen@yit.fi
YIT Corporation
Virva Salmivaara Senior Vice President, Corporate Communications
Distribution: NASDAQ OMX, principal media, www.yitgroup.com
YIT is a leading European service company in building systems, construction services and services for industry. We build, develop and maintain quality living environments in the Nordic countries, Russia, the Baltic countries and Central Europe. In 2009, YIT's turnover was EUR 3.5 billion. The Group has 23,500 employees. YIT's shares are listed on NASDAQ OMX Helsinki. YIT's largest business segment is Building and Industrial Services, which provides services in all countries where YIT operates. In 2009, the segment's revenue was EUR 2,125 million and it employed 17,560 people. More information: www.yitgroup.com s