YIT?s financial statement bulletin for 2

STOCK EXCHANGE RELEASE February 13, 2003, 8.00 1(19)

YITs financial statement bulletin for 2002: STABLE TREND IN NET SALES AND EARNINGS

· The YIT Groups net sales grew by 9 per cent in 2002 and amounted to EUR 1,763.0 million (2001: EUR 1,623.1 million). The share of net sales accounted for by the Groups international activities grew from 20 to 22 per cent. The portion of net sales generated by YIT Primatel - a company that builds and maintains telecom networks which was integrated into the YIT Group at the beginning of June - was EUR 95.8 million.

· Operating profit came in at EUR 89.8 million (EUR 99.7 million).
The operating profit margin was 5.1 (6.1). Operating profit for the previous year included EUR 10.9 million in non-recurring sales gains, and thus profit exclusive of non-recurring items was at the previous years level.

· Profit before extraordinary items and taxes was EUR 77.6 million (EUR 88.8 million). The residual taxes levied by the Tax Office for Major Corporations in March, EUR 10.9 million, impacted on earnings per share, EUR 1.49 (EUR 2.14). Earnings per share exclusive of the residual taxes amounted to EUR 1.86. YIT appealed the decision and the Tax Correction Board approved the appeal in December. The residual taxes repaid to YIT in January 2003 by the Finnish Tax Administration have not been accounted for in the 2002 financial result. Equity per share rose to EUR 12.54 (EUR 11.92).

· Return on investment remained at a good level and was 17.8 per cent (21.6%). In spite of the fact that acquisitions were carried out, the equity ratio also remained strong, amounting to 38.2 per cent (40.3%).

· The Group's backlog of orders - i.e., the value of work not recognized as income - was 28 per cent higher at the end of the review period than a year earlier, amounting to EUR 938.8 million (EUR 735.8 million). Of the order backlog, 27 per cent (24%) represented foreign orders. A quarter of the Group's net sales come from its industrial, property, telecom network and traditional infrastructure maintenance and servicing business. Part of this business comprises works that are not included in the order backlog.

· YIT is a service company whose core businesses are capital investment and maintenance services. In August, the company was recategorized on Helsinki Exchanges as an Other Services Business Sector company so that the listing better reflects YIT's current structure.

· The Board of Directors proposes that a dividend of EUR 0.90 be paid per share (EUR 0.85).

Outlook for 2003

In our estimation, the trend in YITs net sales and earnings will be stable in 2003.

Annual General Meeting

YIT Corporations Annual General Meeting will be held on Thursday, March 13, 2003, from 15:00 onwards at the companys head office, Panuntie 11, Helsinki. The full notice of meeting will be published as a separate stock exchange release on February 13, 2003.

Annual Report 2002 and Interim Reports in 2003

The Annual Report for 2002 will be published in Finnish during week 10/2003 and in English and Swedish during week 11/2003. Interim Reports will be released on May 6, August 1 and October 30, 2003.
Financial reports and other investor information can be read at our site, www.yit.fi.

The Report of the Board of Directors and a summary of the financial statement information are provided as an annex. No auditor's report on the financial statement bulletin has been submitted.

YIT CORPORATION

Reino Hanhinen Group CEO

For additional information, contact: Reino Hanhinen, Group CEO, +358 20 433 2454, reino.hanhinen@yit.fi Executive Vice President Esko Mäkelä, tel. +358 20 433 2258, esko.makela@yit.fi Veikko Myllyperkiö, Vice President, Corporate Communications, +358 20 433 2297, veikko.myllyperkio@yit.fi

Distribution: Helsinki Exchanges, principal media, www.yit.fi

REPORT OF THE BOARD OF DIRECTORS, January 1 - December 31, 2002

YITs net sales see stable growth

In 2002, the YIT Groups net sales rose to EUR 1,763.0 million (2001: EUR 1,623.1 million), representing growth of 9 per cent on the previous year. Of the net sales, 62 per cent (61%) were generated by the business operations of the YIT Construction subgroup, which offers construction-related services, and 33 per cent (39%) by the YIT Installation subgroup, which offers capital investment and maintenance services for industry and building system services. The share of net sales accounted for by YIT Primatel, which builds and maintains telecom networks, was 5 per cent. YIT Primatel has been included in the consolidated financial statements as from June 1, 2002.

Net sales by subgroup (EUR million)

Jan.- Jan.- Change Dec./2002 Dec./2001

YIT Construction subgroup 1,111.8 1,013.8 10% YIT Installation subgroup 581.7 627.8 -7% YIT Primatel subgroup 95.8 Other items -26.3 -18.5 42% YIT Group, total 1,763.0 1,623.1 9%

YITs service chain spans the entire life cycle of investments. A growing share of the Groups net sales come from its industrial, property, telecom network and traditional infrastructure maintenance and servicing business. In 2002, the share of total net sales accounted for by the maintenance business rose to EUR 425.1 million, representing 24 per cent of total net sales.

The share of the net sales accounted for by the Groups international activities rose from 20 to 22 per cent. Of the net sales, 78 per cent (80%) were generated in Finland, 13 per cent (13%) in the other Nordic countries, 6 per cent (3%) in the Baltic countries, 2 per cent (2%) in Russia and the remainder in the rest of Europe and from exports to distant markets.

Operating profit exclusive of non-recurring items comes in at the previous years level

The YIT Groups operating profit for 2002 was EUR 89.8 million (EUR 99.7 million). The operating profit margin was 5.1 (6.1). Operating profit for the previous year included EUR 10.9 million in non- recurring capital gains from a sale, and thus profit exclusive of non- recurring items was at the same level. The YIT Construction subgroup accounted for 72 per cent (76%) of operating profit, the YIT Installation subgroup for 22 per cent (24%) and YIT Primatel for 6 per cent.

Operating profit by subgroup (EUR million)

Jan.- Jan.- Change Dec./2002 Dec./2001

YIT Construction subgroup 70.3 79.4 -11% YIT Installation subgroup 21.1 24.9 -15% YIT Primatel subgroup 6.0 Other items -7.6 -4.6 65% YIT Group, total 89.8 99.7 -10%

Profit before extraordinary items and taxes was EUR 77.6 million (EUR 88.8 million). Profit after taxes declined to EUR 43.0 million (EUR 61.6 million). In addition to the income taxes for the review period, the figure includes the residual taxes levied for 1997 by the Tax Office for Major Corporations in March 2002, EUR 10.9 million, in their entirety. YIT appealed the tax decision and the Tax Correction Board of the Tax Office for Major Corporations approved the appeal in December. The residual taxes repaid to YIT in January 2003 by the Finnish Tax Administration have not been accounted for in the 2002 financial result.

The residual taxes impacted on earnings per share in particular, which declined to EUR 1.49 (EUR 2.14). Exclusive of the residual taxes, earnings per share amounted to EUR 1.86. Equity per share rose to EUR 12.54 (EUR 11.92).

Dividend proposal: EUR 0.90 per share

YITs objective is profitable growth. The Board of Directors reconfirmed 10-15 per cent as the target for average annual net sales growth when it reviewed the strategy in August. In 2002, net sales grew by 9 per cent. During the past five years, net sales have grown by 14 per cent on average. The target level for return on investment was reconfirmed at 18 per cent. In 2002, return on investment amounted to 17.8 (21.6%). The target level for the equity ratio was changed from 45 to 40 per cent, which better matches the growth and return on investment targets set for the Group. In spite of the fact that acquisitions were carried out, the equity ratio amounted to 38.2 per cent (40.3%) in 2002.

The dividend payout target was reconfirmed at 30-50 of annual earnings after taxes and minority interest. The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.90 be paid per share (EUR 0.85), representing 48.4 per cent (39.7%) of earnings per share calculated exclusive of residual taxes.

The order backlog strengthens

The Group's market position is strong. The Group's backlog of orders - i.e., the value of work not recognized as income - was 28 per cent higher at the end of the review period than a year earlier, amounting to EUR 938.8 million (EUR 735.8 million). The foreign order backlog saw especially strong growth, amounting to EUR 255.0 million (EUR 180.2 million) at years end. The margin of the order backlog was good.

Part of the Group's maintenance and servicing business comprises works that are not included in the order backlog.

Order backlog by subgroup (EUR million)

Dec./2002 Dec./2001 Change YIT Construction subgroup 619.3 509.8 21% YIT Installation subgroup 225.5 226.0 0 YIT Primatel subgroup 94.0 YIT Group, total 938.8 735.8 28%

YIT's financial position is good

The Groups financial position remained good during the report period. The Groups interest-bearing liabilities amounted to EUR 143.0 million (EUR 147.7 million) at the end of the period and net debt to EUR 104.1 million (EUR 110.7 million). Net financial expenses were EUR 12.2 million (EUR 10.9 million), or 0.7 per cent (0.7%) of net sales. Liquid assets at the close of the year amounted to EUR 38.9 million (EUR 37.0 million).

The construction-stage contract receivables sold to financing companies totalled EUR 126.1 million (EUR 92.8 million) at the end of the year. The interest paid on them to the financing companies, EUR 4.9 million (EUR 4.9 million), is included in net financial expenses.

The proportion of fixed-interest loans in the Group's entire loan portfolio was 87 per cent (83%). Loans raised directly on the capital and money markets amounted to 52 per cent (51%).

Total assets in the consolidated balance sheet amounted to EUR 1,038.2 million (EUR 916.4 million) at the end of the financial year.
The growth in the balance sheet was primarily due to the acquisition of Primatel and plots as well as the increase in market-financed residential production.

Number of personnel increases by close to a quarter

In 2002, the YIT Group employed 11,990 (10,118) people on average. At the end of the year, the number of employees was 12,633, whereas it was 10,264 at the beginning of the year, representing growth of 23 per cent. The personnel increase was due to the acquisition of Primatel Ltd and organic growth.

The Group's foreign units employed slightly under a quarter of all personnel, or 2,965 (2,654) people.

Of the employees, 38 per cent (43%) were on the payroll of YIT Construction, 47 per cent (55%) of YIT Installation, 13 per cent of YIT Primatel and 2 per cent (2%) of the parent company and incorporated service units.

Personnel by subgroup, Dec. 31, 2002

Dec./2002 Dec./2001 Change YIT Construction subgroup 4,843 4,363 11% YIT Installation subgroup 5,927 5,673 4% YIT Primatel subgroup 1,619 Other 244 228 7% YIT Group, total 12,633 10,264 23%

The development of the personnel and of operation systems comprises a part of the Groups business operations. The Groups financial outlays on development operations amounted to about EUR 13 million (EUR 12 million) in 2002, representing 0.7 per cent (0.7%) of net sales.

Capital expenditures and largest acquisitions

During the financial year, gross capital expenditures on non-current assets included in the balance sheet totalled EUR 60.6 million (EUR 75.1 million), representing 3.4 per cent (4.6%) of net sales.
Investments in construction equipment amounted to EUR 6.7 million (EUR 9.0 million) and investments in information technology to EUR 6.6 million (EUR 4.5 million). Other production investments came in at EUR 1.9 million (EUR 1.3 million). Other investments, including the goodwill on consolidation of the acquired companies, amounted to EUR 45.4 million (EUR 60.3 million).

By means of an agreement signed on April 24, 2002, YIT Corporation acquired all the shares outstanding in Primatel Ltd from Sonera Corporation. The purchase price was agreed at EUR 41.6 million minus the actual net debt at the time when the deal would be consummated.
The Finnish Competition Authority approved the acquisition on May 16, 2002. The deal was consummated and the final purchase price, EUR 33.7 million, was paid on May 31, 2002. The goodwill on consolidation resulting from the deal, EUR 33 million, will be amortized over 10 years.

In January, YIT Rapido Property Management Services Ltd acquired the property maintenance operations of Saunakallion Kiinteistönhoito Oy.
The business operations of Kaukotek Oy, which focuses on municipal piping renovations and special environmental structures, were transferred to YIT Construction Ltd by means of a deal made in February.

Likewise in January, YIT Service Ltd acquired ARK-Sähköpalvelu Oy, an electrical and automation company in Lahti. In October, YIT Huber Ltd acquired Härkätien Sähkö Oy, which operates in the Turku economic area, and Linke Oy, which offers refrigeration equipment servicing and contracting in Northern Finland.

In September, YIT Installation Ltd sold its 51 holding in Scandinavian Mill Service Oy to Metso Paper Oy. The net sales of this company that specializes in maintenance services for the paper industry amounted to EUR 5.3 million in 2001.

Changes in the corporate structure

A third subgroup was established alongside YIT Construction Ltd and YIT Installation Ltd on June 1, 2002: YIT Primatel Ltd, which comprises the organization of the acquired company Primatel Ltd.
Hannu Leinonen, M.Sc. (Eng.), was appointed as the president of YIT Primatel Ltd.

In September, Kruunuhaan Putki Oy was merged into YIT Huber Ltd and in October, ARK-Sähköpalvelu Oy was merged into YIT Service Ltd.

YIT Installation Ltds subsidiaries YIT Power Ltd and YIT Industry Ltd were merged on December 31, 2002, and renamed YIT Industria Ltd as from January 2, 2003. YIT Industria Ltd comprises YIT Installations Capital Investment Services for Industry division.

The winding up of AS YIT Huber was seen to completion during the year under review.

Decisions taken by the Annual General Meeting

YIT Corporations Annual General Meeting was held on March 7, 2002.
The Annual General Meeting adopted the 2001 financial statements and discharged the accountable parties from liability. The meeting confirmed that a dividend of EUR 0.85 would be paid per share for 2001 (EUR 0.75 in 2000), or a total of EUR 24.5 million (EUR 22.0 million). It was decided that the dividend payout will begin on March 19, 2002.

The Annual General Meeting confirmed that the number of Board members shall be set at six. The following persons were elected as members of the Board of Directors: Ilkka Brotherus, Eino Halonen, Reino Hanhinen, Asmo Kalpala, Mikko Kivimäki and Teuvo Salminen. At its organization meeting on March 13, 2002, the Board of Directors elected Ilkka Brotherus as its chairman and Asmo Kalpala as its vice chairman.

PricewaterhouseCoopers Oy, Authorized Public Accountants, was elected as the companys auditor; it appointed Pekka Nikula, Authorized Public Accountant, as chief auditor.

The Annual General Meeting also decided on the purchase and transfer of YIT shares and the granting of share options.

Systematic implementation of the strategy

In accordance with its strategy, YIT continued to develop its business structure during the report year. In April, YIT acquired from Sonera the shares outstanding in Primatel Ltd in their entirety.
Primatels net sales in 2001 amounted to EUR 153.5 million and it employed about 1,700 people. The integration of YIT Primatel into the Group at the beginning of June expanded YITs service chain to cover telecom networks, which are part of todays and especially tomorrows infrastructure. YIT is a full-service company offering its customers design, construction and maintenance services for industry, properties, telecom networks and traditional infrastructure.

YIT expanded its maintenance and servicing-related operations and its ancillary services for users in all its business areas. This serves to further reduce the companys dependence on cyclical fluctuations.
The acquisition of extensive plot reserves in key locations in the growth centres makes it possible to increase the share of construction operations accounted for by developer contracting.

The share of net sales accounted for by the Groups international activities grew. In line with its strategy, YIT is seeking growth in the market for capital investment and maintenance services for industry and building systems in Scandinavia and in the construction market in the Baltic countries and Russia. Several smaller installation companies were acquired in Sweden and Finland. The works on St. Petersburgs southwestern wastewater treatment plant and the Japanese Embassy in Moscow were started up in Russia. Developer-based residential construction was started up in St. Petersburg and in the largest cities in the Baltic countries.

YIT is recategorized from a Construction to an Other Services company

The company requested Helsinki Exchanges to recategorize YIT on its list from a Construction Business Sector company to an Other Services Business Sector company so that the listing better reflects YIT's current business structure. Helsinki Exchanges approved the transfer effective on August 12, 2002.

Forecasts indicate that the market situation will remain stable in YIT's main business areas and market territories

Finland

In its business cycle report published in December 2002, the Research Institute of the Finnish Economy ETLA predicts that Finlands GDP will grow by 2.7 per cent in 2003, corresponding to the long-term average growth in domestic product. The rate of GDP growth picked up from the depressed climate of 2001, when it was 0.7 per cent, to 1.7 per cent in 2002. Investments declined by 2.4 per cent in 2002. ETLA estimates that they will increase by 2.5 per cent in 2003. Private consumption was up 2.4 per cent and it is estimated that growth will continue at a rate of 2.9 per cent in 2003. The two-year nationwide incomes policy agreement concerning wages, salaries and collective agreements as well as the growth in disposable income have upheld the confidence of households in the stable development of their personal finances. Exports began to grow during the second quarter of 2002 and full-year growth is anticipated to have amounted to 1.6 per cent.
ETLA predicts that exports will increase by 3.7 per cent in 2003.

ETLA estimates that Finland's GDP will grow by an average of 3.1 per cent annually until 2006, while industrial output will increase by 4.2 per cent per year. Production by the private service sector will grow by slightly under 4 per cent, but the growth of the public sector will stall at about 2 per cent per year. According to ETLA, construction will swing into growth of 1.8 per cent this year, increasing by an average of slightly over 3 per cent per year until 2006. The estimates of the Confederation of Finnish Construction Industries RT and VTT, which represents Finland in Euroconstruct, indicate that the construction market will remain stable in Finland.
Both organizations evaluate that construction declined by one per cent in 2002, but predict growth of one per cent in 2003.

The years-long population shift is maintaining demand for residences in Finland's growth centres. According to the preliminary information released by Statistics Finland, 277,000 people moved from one municipality to another in 2002. They represent about five per cent of Finlands population.

Sales of residences began to pick up in summer 2001, and this continued during all of 2002. The market is well poised to see further demand for residences. Demand is supported by the relatively stable and low interest rate levels in the EMU area and the increase in the disposable income of households. VTT and the Confederation of Finnish Construction Industries RT estimate that the construction of a total of 28,000 residential units was begun in Finland in 2002 and that the number of start-ups will increase slightly in 2003.

The number of vacant industrial and commercial buildings is currently significantly below the normal levels in the growth centres of Finland. On the other hand, the vacancy rate of office buildings has risen to about five per cent in numerous growth centres. Office building start-ups were already slashed in the second half of 2001, and thus the supply of new offices that are about to be completed is contracting dramatically. The centralization of the population in the growth centres and the increase in consumption and services are still causing a need for the construction of additional public and commercial service buildings.

The growth in residential production and renovation compensates for the decline in office and industrial construction. The growth in repair works also strengthens the market for building automation and equipment.

Motorway, railway and harbour investment projects will be started up in Southern Finland, leading to a surge in civil engineering investments. VTT estimates that in 2003 such investments will grow by three per cent in Finland. The infrastructure investments required by the Vuosaari Harbour, the Turku motorway, the Kehä III ring road, the Lahti branch line and the new nuclear power plant will increase civil engineering production in many years to come.

The construction of Finland's fifth nuclear power plant will call for a significant volume of construction, building system and industrial piping works. In addition to the power plant, office and social premises, residences and storage facilities will be built. The expertise and capacity of YIT's prefabrication factories in Finland and Calor's plants in Sweden are suitable for the construction and installation of the power plant's process piping, tanks and reservoir lining. In the Nordic countries, YIT is the market leader in the design, production, installation and maintenance of high-pressure piping systems for power plants. In addition to the ordinary building systems required in the properties, ventilation, cooling, fire alarm and fire extinguisher systems for various equipment premises will be installed in the project.

From YIT's standpoint, the market potential of the nuclear power plant is about EUR 600-700 million and it rests largely on piping deliveries and HEPACE and automation systems as well as construction works.

ETLA predicts that capital investments by Finnish industry, which are important to YIT Installation's operations, declined by about 10 per cent in 2002. Total fixed investments by the national economy decreased by 2.5 per cent. In export businesses, capacity utilization ratios will only increase slightly in 2003 and thus no great changes are expected in the demand for investments. ETLA predicts that fixed investments will rise by 2.5 per cent in 2003. The market for industrial, property, infrastructure and telecom network maintenance will expand as the outsourcing trend progresses.

Deliveries of broadband connections as well as telecom networks and security systems for properties are continuing to grow. Property automation, various monitoring and surveillance systems, and their remote control are also growing fields. Thanks to the rising number of broadband connections, there will also be a greater need to build urban networks, initially in the growth centres in particular.

Due to the uncertainty prevailing in the telecommunications business, operators have pushed back their investments and raised the capacity utilization rate of their networks. Investments in mobile communications networks in particular have declined and no significant growth is expected at least in 2003. Demand for wireless local networks, on the other hand, has grown and is expected to keep growing.

Teleoperators are focusing even more intensely on developing their core expertise services and sales to end customers - and are outsourcing technical functions related to network construction and maintenance. To date, local Finnish telcos have primarily outsourced fixed network construction. The outsourcing of other functions will also expand in the next few years.

Sweden

The Swedish National Institute of Economic Research KI estimated in December 2002 that Swedens GDP had grown by 1.6 per cent and predicted that growth in 2003 and 2004 will amount to 1.8 and 2.8 per cent, respectively. KI estimates that GDP growth will gain momentum starting in the latter half of 2003 thanks to private household consumption and exports. Growth in exports became positive, 0.7 per cent, in 2002 and is expected to accelerate to 3.1 per cent in 2003 and to 6.9 per cent in 2004. Fixed investments declined by 3.5 per cent in 2002. KI predicts that investments will grow by 1.5 and 4.8 per cent in 2003 and 2004, respectively. In KIs business cycle barometer published in December, Swedish industry did not expect to see growth in the first months of 2003.

In November 2002, the Swedish construction federation Sveriges Byggindustrier estimated that construction had grown by one per cent in 2002 and that it will grow by 3 and 4 per cent in 2003 and 2004, respectively. In December 2002, Euroconstruct evaluated that Swedens construction production had swung into growth of 0.7 per cent in 2002 and predicted that there will be growth of 3.6 per cent in 2003. The business cycle barometer which the National Institute of Economic Research released in December predicts that construction will still decline during the next few months.

The decline in industrial and office construction in Finland and Sweden is compensated for by the rise of residential production and renovation works. The growth in repair works also strengthens the market for building automation and equipment in both countries.
Industrifakta of Sweden estimates that the market for building automation and equipment, which is important to YIT's Calor, will either remain stable or grow slightly in 2003. During the next few years, demand for piping and tank deliveries in the Nordic countries will be increased by energy investments and the construction of the Snöhvit gas field in Norway and certain projects for the wood processing industry.

VVS-Installatörerna, the installation engineering employers' union of Sweden, estimates that the Swedish installation market amounted to about EUR 6 billion in 2001.

The Baltic countries and Russia

GDP grows at a significantly faster rate in the Baltic countries and Russia than in the Nordic countries. In November, the European Commission published its GDP predictions for the Baltic countries.
The GDP growth predictions for 2002-2004 were: Estonia, 4-5 per cent, Latvia, 5-6 per cent, and Lithuania, 4-5 per cent. In Russia, growth will amount to about 4 per cent both this year and the next. The growth of investments and construction outpaces that of GDP in these countries.

Preparations for EU membership in 2004 have led to greater industrial, water supply and wastewater treatment and environmental investments, along with more construction of business premises. As the income levels of the population have risen, demand for modern residences has begun in the largest cities in the Baltic countries and Russia. YIT's order backlog has grown rapidly in the region thanks to projects based on international funding and the start-up of residential production.

Global political situation is uncertain

The prolongation of global political uncertainty might put the brakes on economic development and weaken the market outlook described above.

YIT's market strategy

YIT aims to achieve growth outpacing that of the market and a steadier flow of income, relying on a strategy of pragmatically extending the service chain over the entire life cycle of investment projects, from design and implementation to maintenance, upkeep and operating services.

The market for industrial, telecom network, property and infrastructure maintenance will expand as the outsourcing trend progresses. The structure of the YIT Group's business areas enables the company to offer capital investment and maintenance services - of various scales and content - to industrial, energy, property and telecommunications sector customers. The Group's strategic expansion areas are the Scandinavian installation market and the construction markets of the Baltic countries and Russia. YIT has implemented its strategy consistently. The latest example of this is the integration of YIT Primatel Ltd into the Group during the review period.

Earnings trends of the subgroups:

YIT Construction

The net sales of the YIT Construction subgroup grew by 10 per cent on the previous year and amounted to EUR 1,111.8 million (EUR 1,013,8 million). Operating profit was EUR 70.3 million (EUR 79.4 million), down 11 per cent on the previous year. At the end of the year, the order backlog was 21 per cent larger than a year earlier, or EUR 619.3 million (EUR 509.8 million). The order backlog of international operations saw especially vigorous growth, with its share of the entire order backlog rising to 26 per cent (15%).

The net sales of Building Construction grew by 5 per cent and were EUR 619.4 million (EUR 592.1 million). Operating profit was EUR 49.3 million (EUR 49.1 million), at the same level as in the previous year. At the end of the year, the order backlog was 22 per cent higher than in the previous year, having risen to EUR 292.6 million (EUR 240.6 million).

Building Construction is responsible for the Group's residential construction in the entire country. Outside the Greater Helsinki area, its field of business also includes other types of building construction. Demand for residences remained high in the Greater Helsinki area and the other growth centres. In addition to the population shift, low interest rates and consumers confidence in the positive development of their personal finances also underlay the brisk demand for non-rental housing.

During 2002, the construction of a total of 3,278 (3,169) residences was started up. Of them, 2,244 (1,413) were market financed. During the review period, 3,170 (2,989) residential units were completed, of which 1,534 (1,669) were market financed. At the end of the year, a total of 3,338 (3,224) residential units were under construction, of which 2,198 (1,382) were market financed.

Commercial and business facility projects were carried out in provincial centres; among them were the Mediaani business building in Oulu, the Mediwest health technology centre in Seinäjoki and Hartwalls production plants in Lahti. YIT has building rights for commercial and office premises in central locations in Tampere, Oulu, Turku and Jyväskylä. The construction of a multi-purpose hall was started up in Joensuu. Once completed, it will be the largest wooden building in Finland.

Property Services net sales were 10 per cent higher than a year earlier, amounting to EUR 206.8 million (EUR 187.2 million). Its operating profit contracted to EUR 13.1 million (EUR 22.7 million).
One of the reasons behind the weaker operating profit is that the result for the comparison year included EUR 4.9 million in capital gains from the sale of the head office property. The decline in the vacancy rate of office buildings increased the yield requirements of investors and thereby weakened the profitability of property development operations. At the end of the year, the order backlog amounted to EUR 117.6 million (EUR 138.9 million).

Property Services offers property maintenance and operation and project management services in all of Finland. In the Greater Helsinki area and nearby areas, the division also provides services for projects and business premises as well as business facility construction and renovation services. Major property development projects were started up in the Greater Helsinki area and sold to investors. Demand for office premises contracted during the review year, but demand for commercial premises continued. In the construction of business premises, Property Services shifted its focus onto public construction and tender-based and project management contracting.

Renovation, property servicing and maintenance and property management saw strong growth.

Infraservices net sales were EUR 118.8 million (EUR 115.5 million), up 3 per cent on the previous year. Its operating profit of EUR 4.1 million was slightly smaller than in the previous year (EUR 4.3 million). At the end of the year, the order backlog amounted to EUR 50.5 million (EUR 51.3 million).

Infraservices offers infrastructure construction and maintenance services. In 2002, the renovation of pipes using non-invasive methods was added to the product range.

In the case of International Operations, net sales rose by 40 per cent to EUR 168.4 million (EUR 120.3 million). Operating profit came in at EUR 6.2 million (EUR 7.1 million). The order backlog doubled during the year under review, rising to EUR 158.6 million (EUR 79.0 million).

International operations focus on the Baltic rim. The volume saw vigorous growth in Baltic construction services and sales of Makroflex products. Russian construction services enjoyed steady growth. The volume in water and environmental services remained unchanged. The construction of the Japanese Embassy in Moscow got under way in autumn and that of the southwestern waste water treatment plant of St. Petersburg at the end of the year. Market- financed residential production was developed vigorously in St.
Petersburg, Tallinn, Pärnu and Vilna.

YIT Installation

The net sales of the YIT Installation subgroup amounted to EUR 581.7 million (EUR 627.8 million), down 7 per cent on the previous year.
YIT Installation is one of the largest companies offering building system services and capital investment and maintenance services for industry in the Nordic countries. The markets saw inconsistent growth during the report year. Brisk residential construction maintained the demand for building systems in both Finland and Sweden in spite of the contraction in the construction of business premises. The trend in industrial maintenance remained stable, but demand for investments declined dramatically. The share of YIT Installations net sales accounted for by its maintenance and servicing business was 61 per cent (53%).

The value of international operations was EUR 228.8 million (EUR 218.5 million) and its share of net sales rose to 39 per cent. The bulk of net sales generated from international activities came from Sweden and Norway, where operations are handled by YITs Swedish subsidiary Calor AB.

Operating profit came in at EUR 21.1 million (EUR 24.9 million). The result for the comparison year included EUR 6 million in capital gains from the sale of a surface-treatment business, and thus profit exclusive of non-recurring items was 12 per cent higher than in the previous year.

At the end of the year, YIT Installations order backlog was at the same level as a year earlier, or EUR 225.5 million (EUR 226.0 million). The share of the order backlog accounted for by international activities was EUR 95.4 million (EUR 99.6 million).

In 2002, the net sales of the Building Systems division declined by 8 per cent compared with the previous year, amounting to EUR 145.8 million (EUR 158.2 million). Earnings improved compared with the previous year. The division operated in thirty localities in Finland.
About half of its net sales are generated by its maintenance and servicing business. At the end of the year, the order backlog amounted to EUR 48.5 million (EUR 56.3 million).

The net sales of the Capital Investment Services for Industry division were down 20 per cent compared with the previous year, amounting to EUR 163.4 million (EUR 204.1 million). The decline in net sales was due to the smaller demand for industrial investment projects. However, the operational result remained good. At the end of the year, the order backlog amounted to EUR 40.0 million (EUR 50.0 million).

Investments by the forest industry contracted substantially during the year under review and demand in the energy industry also declined. Demand remained at a good level in the process and base metals industry. In the marine industry, demand was good in the first half of the year, but weakened towards the end of the year.

The organization of the division was streamlined at years end by merging YIT Industry Ltd and YIT Power Ltd to form one company named YIT Industria Ltd. It now comprises the Capital Investment Services for Industry division.

The net sales of the Industrial Maintenance division increased by 15 per cent compared with the previous year and amounted to EUR 104.4 million (EUR 91.1 million). The operational result was at the same level as in the previous year. Demand in the maintenance market remained stable during the entire year. The outsourcing trend continued in maintenance services and in 2002 YIT made numerous new partnership agreements for the maintenance of production plants and the development of maintenance in different fields of industry. The order backlog, which primarily comprises long-term partnership agreements, stood at EUR 64.2 million (EUR 45.2 million) at years end.

The Scandinavia division provides building system services and capital investment and maintenance services for industry in Sweden and Norway. The divisions net sales grew by 5 per cent in 2002, coming in at EUR 201.1 million (EUR 192.3 million). The earnings trend remained favourable. At period's end, the order backlog was EUR 92.1 million (EUR 90.7 million).

Residential construction is on the rise in Sweden, but the rate of growth slowed down in the latter half of the year. Demand for building automation and equipment in new construction remained at a good level in spite of the decline in the construction of business premises. The demand for servicing and maintenance is stable in building systems. Capital investments by industry remained at a modest level and are only expected to pick up towards the end of 2003.

YIT Primatel

In the June-December period of 2002, YIT Primatel had net sales of EUR 95.8 million. About 60 per cent of net sales are based on long- term customer agreements and 40 per cent on project production.
Operating profit amounted to EUR 6.0 million. At the end of the report year, its order backlog was EUR 94.0 million.

As part of the YIT Group, YIT Primatel is an independent player that is not dependent on operators. In addition to Finland, it operates in Scandinavia, the Baltic countries and the nearby areas of Russia.
Teleoperators are outsourcing their network construction and maintenance-related functions in this entire market area. In 2002, YIT Primatel made an extensive cooperation agreement with Song Networks.

Shares and share capital

YIT Corporations share capital was EUR 58,767,370 at the beginning of 2002 and the number of shares outstanding was 29,383,685. The share subcriptions based on the 1998 share options raised the share capital by a total of EUR 725,300 in four instalments. At the end of the year, the share capital was EUR 59,492,670 and the number of shares was 29,746,335.

The closing price of YITs share on the final day of trading in 2002 was 24 per cent higher than in the previous year, or EUR 16.79 (2001: EUR 13.50). The share trend was significantly better than average share trends on Helsinki Exchanges.

The highest price of YITs share during 2002 was EUR 19.65 (EUR 13.95) and the lowest was EUR 13.20 (EUR 10.42). The average price was EUR 16.40 (EUR 12.66). YIT Corporations market capitalisation at the end of the year was EUR 489.9 million (EUR 389.7 million).

Share turnover on Helsinki Exchanges amounted to 9,911,550 shares in 2002 (4,447,612). The value of share turnover was EUR 162.5 million (EUR 56.3 million).

Authorizations to increase the share capital

At the end of 2002 the Board of Directors did not have valid share issue authorizations or authorizations to issue convertible bonds or bonds with warrants.

Own shares

At the beginning of 2002, YIT held a total of 515,279 of its own shares, representing 1.8 per cent of the shares outstanding and the votes conferred by them. The shares had been acquired on Helsinki Exchanges on the basis of decisions taken by general meetings of shareholders in previous years. From January 2 to 23, 2002, the company acquired a total of 52,021 of its own shares. The total price of the bought shares was EUR 709,186 and the average price was EUR 13.63 per share.

The Annual General Meeting held on March 7, 2002, decided to purchase a minimum of 200 to a maximum of 700,000 of the companys own shares with distributable shareholders equity. Furthermore, the Annual General Meeting resolved to authorize the Board of Directors to decide on the disposal of a maximum of 1,267,300 of its own shares previously bought for the company or acquired on the basis of the above decision. On the basis of the decision, the company acquired 200 of its own shares on November 1, 2002. No own shares were disposed of in 2002.

On December 31, 2002, the company held a total of 567,500 of its own shares, representing 1.9 per cent of all of the companys shares and voting rights. The shares were acquired at an average price of EUR 12.64 per share. YIT's subsidiaries did not own shares in the parent company.

Changes in the ownership structure

The number of registered shareholders was 2,969 at the beginning of 2002 and 3,271 at the end. According to the figures for nominee registrations, foreigners' holdings in the company were 15.0 per cent at the beginning of the year and 22.1 per cent at the end. Other foreign ownership at the end of the review period amounted to 2.7 per cent; foreign ownership thus rose to 24.8 per cent in all.

On February 13, 2002, the Tapiola Insurance Group announced that its stake in YITs share capital and voting rights had declined to 13.49 per cent. On December 9, 2002 the Tapiola Insurance Group announced that its stake had declined to 9.97 per cent. On February 28, 2002, Pohjola Non-Life Insurance Company Limited announced that its stake in YITs share capital and voting rights had fallen to 4.16 per cent.

1998 share options

Under the terms of the share options from 1998 (Series A and B), about 140 persons belonging to Group management and among the key employees have the right to subscribe for a maximum total of 1,200,000 YIT shares, on the basis of which the share capital can be increased by a maximum of EUR 2,400,000.

During 2002, 562,580 Series A share options were traded at an average price of EUR 4.41. A total of 341,250 shares were subscribed for with the options and the share capital was raised by EUR 682,500 on the basis of the subscriptions.

Trading in the Series B share options commenced on October 15, 2002.
By the end of the year, 82,700 share options had been traded at an average price of EUR 3.67. A total of 21,400 shares were subscribed for with the options and the share capital was raised by EUR 42,800 on the basis of the subscriptions.

2002 share options

The Annual General Meeting held in spring 2002 granted a maximum total of 450,000 Series C share options and a maximum total of 950,000 Series D shares for subscription without consideration. 191 members of the Group's management and key employees named by the Board of Directors subscribed for 406,140 Series C share options during their subscription period, May 13 - June 14, 2002. The subsidiary YIT Construction Ltd subscribed for the remaining 43,860 Series C share options, of which 33,210 were granted by the end of 2002 for subscription by 19 managers and key employees. YIT Construction Ltd subscribed for all of the Series D share options; it is intended that they will be distributed to the Groups management and key employees in 2003-2005, provided the profitability and growth targets laid out in the option programme are met.

Each share option entitles its holder to subscribe for one share with a nominal value of two euros. A maximum total of 1,400,000 shares can be subscribed for, which on December 31, 2002, would have represented 4.7 per cent of the companys shares outstanding in their entirety.
On the basis of the subscriptions, the companys share capital may be raised by a maximum amount of EUR 2,800,000. The shares can be subscribed for annually during the period from April 1 - November 30 such that the subscription period for the Series C share options begins on April 1, 2004, and for the Series D share options on April 1, 2005. Both subscription periods end on November 30, 2006.

The subscription price of the share is EUR 15.19 per share. The subscription price will be lowered after January 1, 2003, by the amount of dividends per share distributed by the date when the share subscription period begins.

Events since the end of the review period

YIT appealed the EUR 10.9 million in residual taxes for 1997 levied in March by the Tax Office for Major Corporations. In December 2002, the Tax Correction Board of the Tax Office for Major Corporations announced it would approve the appeal. The residual taxes, complete with interest, were repaid to YIT on January 16, 2003. The total sum was EUR 11.0 million. Because the appeal period concerning the decision is still ongoing, the repayment of the residual taxes has not been accounted for in the calculation of the financial result for 2002.

Outlook for 2003

In our estimation, the trend in YITs net sales and earnings will be stable in 2003.

The Board of Directors

CONSOLIDATED FINANCIAL STATEMENTS, DECEMBER 31, 2002 (No auditors report has been issued in respect of the financial statements.)

INCOME STATEMENT (EUR million) (Full-year earnings) Jan- Jan- Change Dec/2002 Dec/2001 Net sales 1,763.0 1,623.1 9% - of which international 386.9 330.5 17% activities Operating income and expenses -1,643.5 -1,497.2 10% Depreciation and write-downs -16.9 -16.8 1% Amortisation on goodwill on -12.8 -9.4 36% consolidation Operating profit 89.8 99.7 -10% % of net sales 5.1% 6.1% Financial income and expenses, net -12.2 -10.9 12% Profit before extraordinary items 77.6 88.8 -13% % of net sales 4.4% 5.5% Extraordinary income 0 0 Extraordinary expenses 0 0 Profit before taxes 77.6 88.8 -13% % of net sales 4.4% 5.5% Profit for the report period 43.0 61.6 -30%

Deferred tax liabilities and minority interests have been taken into account in the profit for the report period. The profit for 2002 is reduced by the residual taxes of EUR 10.9 million, The residual taxes were levied in March 2002 by the Tax Office for Major Corporations concerning the income of 1997. In December, the Tax Correction Board approved YITs appeal concerning the decision. The residual taxes repaid to YIT in January 2003 have not been accounted for in the 2002 financial result.

Projects have been booked in the income statement on the basis of the degree of completion or the degree of sale, whichever is lower.

INCOME STATEMENT (EUR million) (Fourth-quarter earnings)

Oct- Oct- Change Dec/2002 Dec/2001 Net sales 504.9 460.2 10% - of which international 112.6 120.3 -6% activities Operating income and expenses -471.5 -426.5 11% Depreciation and write-downs -4.5 -4.9 -8% Amortisation on goodwill on -4.1 -2.6 58% consolidation Operating profit 24.8 26.2 -5% % of net sales 4.9% 5.7% Financial income and expenses, net -3.1 -2.4 29% Profit before extraordinary items 21.7 23.8 -9% % of net sales 4.3% 5.2% Extraordinary income 0 0 Extraordinary expenses 0 0 Profit before taxes 21.7 23.8 -9% % of net sales 4.3% 5.2% Profit for the report period 15.9 16.1 -1%

BALANCE SHEET (EUR million) Dec 31, Dec 31, Change 2002 2001 ASSETS Intangible assets 9.7 7.7 26% Goodwill on consolidation 71.8 46.9 53% Tangible assets 61.9 69.7 -11% Investments - Own shares 7.2 6.5 11% - Other investments 7.1 6.3 13% Inventories 338.1 259.3 30% Receivables 503.5 483.0 4% Marketable securities 10.7 18.6 -42% Cash and cash equivalents 28.2 18.4 53% Total assets 1,038.2 916.4 13% LIABILITIES Share capital 59.5 58.8 1% Other shareholders equity 313.7 291.6 8% Minority interests 2.9 3.2 -9% Provisions for liabilities and 14.2 10.1 41% charges Non-current liabilities 138.2 141.2 -2% Current liabilities 509.7 411.5 24% Total shareholders equity and liabilities 1,038.2 916.4 13%

KEY FIGURES 2002 2001 Change Earnings per share, EUR 1) 1.49 2.14 -30% Earnings per share, EUR, diluted 1.47 Earnings per share, exclusive of 1.86 residual taxes Equity per share, EUR 12.54 11.92 5% Average share price during the period, EUR 16.40 12.66 30% Share price at end of period, EUR 16.79 13.50 24% Market capitalisation at end of 489.9 389.7 26% period, EUR million Weighted average share-issue adjusted number of shares 28,970 28,747 1% outstanding, thousands Weighted average share-issue adjusted number of shares 29,257 outstanding, thousands, diluted Share-issue adjusted number of shares outstanding at end of 29,179 28,868 1% period, thousands Net interest-bearing debt at end of period, EUR million 104.1 110.7 -6% Return on investment, % 17.8% 21.6% Return on equity, % 1) 12.2% 19.1% Equity ratio, % 38.2% 40.3% Quick ratio 1.2 1.5 Gearing ratio, % 28.2% 31.9% Gross capital expenditures on non- current assets, EUR million 60.6 75.1 -19% % of net sales 3.4% 4.6% Order backlog at end of period, 938.8 735.8 28% EUR million 2) - of which orders from abroad 255.0 180.2 42% Average personnel 11,990 10,118 19%

1) The residual taxes weaken the comparability of this key indicator in particular.
2) Portion of binding orders not recognized as income.

CONTINGENT LIABILITIES (EUR million) Dec 31, Dec 31, Change 2002 2001 Mortgages given as security for loans - For own commitments 32.8 33.5 -2% Pledges given for loans - For own commitments 0 7.3 Other collateral given for own commitments - Corporate mortgages 0 0.3 - Pledged securities 0.7 0.8 -13% - Others 0.3 0 Leasing commitments 18.3 13.4 37% Other commitments - Repurchase commitments 3) 91.3 86.2 6% - Other contingent liabilities 0.6 0.6 0 Guarantees - On behalf of associated 0.6 0.6 0 companies - On behalf of others 7.2 6.7 7% Liability under derivative contracts 4) - Foreign currency forward contracts -- Value of underlying assets 16.6 12.8 30% -- Fair value 17.2 12.6 37%

3) Repurchase commitments for contract receivables sold to financing companies.
4) Derivative contracts have been taken out mainly to hedge foreign currency loans and foreign currency cash flows from projects.

NET SALES BY DIVISION (EUR million)

Jan-Dec/ Jan-Dec/ Change 2002 2001 Building Construction 619.4 592.1 5% Property Services 206.8 187.2 10% Infraservices 118.8 115.5 3% International Operations 168.4 120.3 40% Other items (YIT Construction) -1.6 -1.3 23% YIT Construction subgroup, total 1,111.8 1,013.8 10% YIT Installation subgroup 581.7 627.8 -7% YIT Primatel subgroup 95.8 Other items (YIT Group) -26.3 -18.5 42% YIT Group, total 1,763.0 1,623.1 9%