YIT'S INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2011: RECORD HIGH RESIDENTIAL SALES IN RUSSIA, THE GROUP'S STRONG ORDER BACKLOG RAISES VISIBILITY

INTERIM REPORT OCTOBER 28, 2011 AT 8:00 A.M.

YIT'S INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2011: RECORD HIGH RESIDENTIAL SALES IN RUSSIA, THE GROUP’S STRONG ORDER BACKLOG RAISES VISIBILITY

SEGMENT REPORTING 1-9/2011 (1-9/2010): Revenue increased by 23 percent

The operating profit of the segments was 3 percent higher than in the previous year, amounting to EUR 164.3 million (1-9/2010: EUR 159.4 million). Operating profit in Building Services Central Europe more than doubled as the result of the acquisition completed at the beginning of September 2010 and successful measures to improve profitability. Operating profit remained at the previous year's level in Construction Services Finland.
The revenue of the segments was 23 percent higher than in the previous year, increasing to EUR 3,260.3 million (1-9/2010: EUR 2,659.4 million). Revenue increased across all segments. The growth of revenue was supported by an acquisition in Central Europe completed at the beginning of September 2010, the slight picking up of demand for building system services, continuously favourable residential sales and the picking up of the business premises market in Finland.
The order backlog of the segments was 4 percent higher than the year before, amounting to EUR 3,489.0 million (9/2010: EUR 3,366.9 million). The order backlog increased from the end of June 2011 in Construction Services Finland.

SEGMENT REPORTING 7-9/2011 (7-9/2010): EUR 10 million cost provision for rectifying the ammonia problem in St. Petersburg residential units

The operating profit of the segments was 25 percent lower than in the previous year, amounting to EUR 43.6 million (7-9/2010: EUR 57.9 million).
Excessive levels of ammonia have been found in residential units built by the company in St. Petersburg. The profitability of International Construction Services is weakened by the costs incurred for rectifying the ammonia problem, which the company currently estimates at EUR 10 million. A cost provision of the said amount has been made for covering these costs in the third quarter.
The revenue of the segments was 19 percent higher than in the previous year, amounting to EUR 1,096.5 million (7-9/2010: EUR 924.2 million).

GROUP REPORTING 1-9/2011 (1-9/2010): Profit before taxes increased by 54 percent, financial position was strengthened

The Group's profit before taxes increased by 54 percent from the previous year to EUR 125.3 million in January–September (1-9/2010: EUR 81.6 million).
Earnings per share increased by 53 percent to EUR 0.72 (1-9:2010: EUR 0.47).
Cash reserves amounted to EUR 224.1 million at the end of September (6/2010: EUR 234.1 million). In addition, committed credit and overdraft facilities amounting to a total of EUR 316.1 million are available.

GUIDANCE: Combined revenue and operating profit of the segments will increase compared to 2010

YIT Corporation revised its outlook regarding the operating profit for 2011 in a stock exchange release on October 12, 2011. YIT reiterates its estimate issued on October 12, 2011, according to which the total operating profit of all its business segments will increase in 2011 compared to 2010. In its outlook issued in connection with the financial statements for 2010 (February 4, 2011), YIT estimated that in 2011, the combined operating profit of the business segments would grow clearly compared to 2010.

Earlier guidance:

YIT estimated that in 2011 the combined revenue of the business segments will grow and operating profit will grow clearly compared to 2010.

New guidance:

YIT estimates that in 2011 the combined revenue and operating profit of the business segments will grow compared to 2010.

YIT estimates residential sales to continue to be good in both Finland and Russia. In the short term, however, the times-to-sale of residential units may be prolonged. In particular, residential construction activity in Russia, German building services and Building Services Northern Europe will provide opportunities for improving profitability.

The clearly increased uncertainty of the general macroeconomic development may have a negative effect also on decision-making by YIT's customers and thereby the development and performance of YIT's business operations.

The profit outlook is based on the segment-level reporting, i.e. recognition of income based on the percentage of completion.

KEY FIGURES

Development of the segments and the Group

Revenue, EUR million	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Building Services Northern Europe	1,497.5	1,284.4	17%	511.9	416.8	23%
Building Services Central Europe	579.0	291.5	99%	210.8	134.2	57%
Construction Services Finland	891.2	807.8	10%	269.4	279.7	-4%
International Construction Services	343.3	330.9	4%	122.5	111.9	9%
Other items	-50.7	-55.2		-18.1	-18.4
YIT's segments total	3,260.3	2,659.4	23%	1,096.5	924.2	19%
IFRIC 15 adjustment	-68.5	-209.8		-11.6	-94.6
YIT Group total	3,191.8	2,449.6	30%	1,084.9	829.6	31%

Operating profit, EUR million	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Building Services Northern Europe	55.8	65.2	-14%	19.9	20.2	-1%
Building Services Central Europe	24.0	7.5	220%	7.9	2.7	193%
Construction Services Finland	79.5	78.7	1%	21.1	29.3	-28%
International Construction Services	19.8	21.3	-7%	-0.9	9.2
Other items	-14.8	-13.3		-4.4	-3.4
YIT's segments total	164.3	159.4	3%	43.6	57.9	-25%
IFRIC 15 adjustment	-21.8	-55.7		-8.2	-24.0
YIT Group total	142.5	103.7	37%	35.4	33.9	4%

Operating profit margin, %	1-9/11	1-9/10	7-9/11	7-9/10
Building Services Northern Europe	3.7	5.1	3.9	4.8
Building Services Central Europe	4.2	2.6	3.7	2.0
Construction Services Finland	8.9	9.7	7.8	10.5
International Construction Services	5.8	6.4	-0.7	8.2
YIT's segments total	5.0	6.0	4.0	6.3
YIT Group total	4.5	4.2	3.3	4.1

Order backlog, EUR million	9/11	9/10	Change	9/11	6/11	Change
Building Services Northern Europe	886.1	743.0	19%	886.1	879.5	1%
Building Services Central Europe	523.9	589.1	-11%	523.9	554.1	-5%
Construction Services Finland	1,289.3	1,205.2	7%	1,289.3	1,239.5	4%
International Construction Services	850.1	884.8	-4%	850.1	896.4	-5%
Other items	-60.3	-55.2		-60.3	-60.2
YIT's segments total	3,489.0	3,366.9	4%	3,489.0	3,509.4	-1%
IFRIC 15 adjustment	249.3	360.6		249.3	287.5
YIT Group total	3,738.3	3,727.5	0%	3,738.3	3,796.9	-2%

Key figures of Group reporting (IFRIC 15)

	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Profit before taxes, EUR million	125.3	81.6	54%	27.6	27.0	2%
Profit for the review period, EUR million	90.0	58.0	55%	18.9	18.7	1%
Earnings/share, EUR	0.72	0.47	53%	0.15	0.16	-6%
Operating cash flow after investments, EUR million	-31.4	-56.1	44%	-47.3	-121.6	61%

	9/11	9/10	Change	9/11	6/11	Change
Return on investment (last 12 months) %	15.5	10.6		15.5	15.6
Equity ratio, %	29.2	29.2		29.2	29.7
Gearing ratio, %	86.8	80.5		86.8	79.9
Personnel at the end of period	26,502	25,943	2 %	26,502	26,807	-1%

NEWS CONFERENCE, WEBCAST AND CONFERENCE CALL

YIT will hold a news conference on the interim report on Friday, October 28, 2011, at 10:00 a.m. (Finnish Time, EEST). The news conference will be held in English. The news conference will be held at YIT's head office at Panuntie 11, 00620 Helsinki, Finland. The event is intended for analysts, portfolio managers and the media.

The news conference and the presentation, given by the company’s President and CEO, Juhani Pitkäkoski, can be viewed live on YIT’s website at www.yitgroup.com/webcast. The live webcast will start at 10:00 a.m. The webcast replay will be available at the same address starting at approximately 12:00 noon.

It is also possible to participate in the event through a conference call. Participants are requested to call the assigned number (+44 (0)20 7162 0077) at least five minutes before the conference call begins, at 9:55 a.m. (Finnish time, EEST) at the latest.

During the webcast and conference call, questions must be asked in English. After the session, there will also be an opportunity for the media to ask questions in Finnish.

Schedule in different time zones:

	Interim Report published	The investor and analyst event, conference call and live webcast	Recorded webcast available
EEST (Helsinki)	8:00	10:00	12:00
CEST (Paris, Stockholm)	7:00	9:00	11:00
BST (London)	6:00	8:00	10:00
US EDT (New York)	1:00	3:00	5:00

Financial reports and other investor information are available at YIT's website, www.yitgroup.com/investors. The materials may be ordered via the website, by sending an e-mail to InvestorRelations@yit.fi or by telephone on +358 20 433 2257.

YIT Corporation

Juhani Pitkäkoski

President and CEO

For further information, please contact:

Timo Lehtinen, Chief Financial Officer, YIT Corporation, tel. +358 45 670 0626, timo.lehtinen@yit.fi

Hanna-Maria Heikkinen, Vice President, Investor Relations, YIT Corporation, tel. +358 40 826 2172, hanna-maria.heikkinen@yit.fi

Distribution: NASDAQ OMX Helsinki, principal media, www.yitgroup.com

INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2011

CONTENTS

Group's financial development
Strategic objectives
Development by business segment
Personnel
Resolutions passed at the Annual General Meeting
Shares and shareholders
Most significant short-term business risks and risk management
Outlook for 2011
Tables to the Interim Report

GROUP'S FINANCIAL DEVELOPMENT

Changes in organisational structure and Group management

As a result of the acquisition completed at the beginning of September 2010, the significance of Central Europe to the Group has increased clearly. YIT's business segment structure was revised from March 1, 2011, with Building and Industrial Services being divided into two segments: Building Services Northern Europe and Building Services Central Europe. From March 1, 2011, YIT’s four business segments are: Building Services Northern Europe, Building Services Central Europe, Construction Services Finland and International Construction Services. YIT's comparable figures for 2010 according to the new business segment structure were published in a separate stock exchange release on March 24, 2011.

Karl-Walter Schuster (61) was appointed as the head of Building Services Central Europe and as a member of the Group Management Board from March 1, 2011. Previously, he acted as the head of the Central Europe division within the Building and Industrial Services business segment. Matti Malmberg (51) was appointed as the head of Building Services Northern Europe and as a member of the Group Management Board from June 29, 2011. Previously, he acted as the head of building system services in Finland, Russia and the Baltic countries.

During the second quarter, YIT Corporation's Board of Directors established a new committee with the purpose of assisting the Board in matters related to the development of YIT's business. The members of this Working Committee are the Board of Directors' Chairman Henrik Ehrnrooth (Chair) and Vice Chairman Reino Hanhinen, as well as Michael Rosenlew, appointed by the Board of Directors from among its number.

Revenue of the segments increased by almost a quarter on the previous year

Revenue, EUR million	1–9/11	1–9/10	Change	7–9/11	7–9/10	Change
Building Services Northern Europe	1,497,5	1,284.4	17%	511.9	416.8	23%
Building Services Central Europe	579.0	291.5	99%	210.8	134.2	57%
Construction Services Finland	891.2	807.8	10%	269.4	279.7	-4%
International Construction Services	343.3	330.9	4%	122.5	111.9	9%
Other items	-50.7	-55.2		-18.1	-18.4
YIT's segments total	3,260.3	2,659.4	23%	1,096.5	924.2	19%
IFRIC 15 adjustment	-68.5	-209.8		-11.6	-94.6
YIT Group total	3,191.8	2,449.6	30%	1,084.9	829.6	31%

The revenue of YIT's segments increased by 23 percent in January–September compared to the previous year, amounting to EUR 3,260.3 million (1–9/2010: EUR 2,659.4 million). Revenue increased across all segments. The revenue of Building Services Central Europe increased compared to the year before particularly as the result of the acquisition completed in September 2010. The growth in revenue was also supported by a slight revival in the demand for building services, continued good residential sales and the revival of the business premises market in Finland. Changes in foreign exchange rates increased the segments' revenue for the review period by EUR 36.1 million compared to the previous year.

Following the IFRIC 15 adjustment, YIT Group's revenue increased by 30 percent from the previous year and was EUR 3,191.8 million for January–September (1–9/2010: EUR 2,449.6 million). The completion schedules of own-based property development projects affect the Group's revenue recognition, and therefore Group-level figures may fluctuate greatly between different quarters. In January–September, the number of residential units completed in Russia was lower than the year before, while in Finland, the Baltic Countries and Central Eastern Europe, more residential units were completed than the year before.

In January–September 2011, Finland accounted for 41 percent of the Group's revenue (44%), Sweden for 16 percent (16%), Germany for 14 percent (8%), Norway for 12 percent (14%), Russia for 7 percent (8%), Denmark for 4 percent (4%), the Baltic countries for 2 percent (2%) and other countries for 5 percent (4%).

Operating profit of the segments remained at the previous year’s level

Operating profit, EUR million	1–9/11	1–9/10	Change	7–9/11	7–9/10	Change
Building Services Northern Europe	55.8	65.2	-14%	19.9	20.2	-1%
Building Services Central Europe	24.0	7.5	220%	7.9	2.7	193%
Construction Services Finland	79.5	78.7	1%	21.1	29.3	-28%
International Construction Services	19.8	21.3	-7%	-0.9	9.2	-110%
Other items	-14.8	-13.3		-4.6	-3.4
YIT's segments total	164.3	159.4	3%	43.6	57.9	-25%
IFRIC 15 adjustment	-21.8	-55.7		-8.2	-24.0
YIT Group total	142.5	103.7	37%	35.4	33.9	4%

Operating profit margin, %	1–9/11	1–9/10	7–9/11	7–9/10
Building Services Northern Europe	3.7	5.1	3.9	4.8
Building Services Central Europe	4.2	2.6	3.7	2.0
Construction Services Finland	8.9	9.7	7.8	10.5
International Construction Services	5.8	6.4	-0.7	8.2
YIT's segments total	5.0	6.0	4.0	6.3
YIT Group total	4.5	4.2	3.3	4.1

The operating profit of YIT's segments increased by 3 percent in January–September compared to the previous year, amounting to EUR 164.3 million (1–9/2010: EUR 159.4 million). The operating profit margin calculated on the basis of the segment figures was 5.0 percent (1-9/2010: 6.0%). The operating profit of the segments includes EUR -6.3 million (1-9/2010: EUR -1.8 million) of borrowing costs according to IAS 23. The IAS 23 standard defines the recording method of borrowing costs in long-term construction projects.

The third quarter operating profit margin of Building Systems Northern Europe fell short of the previous year due to strict price competition, especially in project operations, and the relatively low level of new building system and industrial investments. In Building Services Central Europe, operating profit improved particularly with the German operations improving their performance.

During the third quarter, the operating profit of Construction Services Finland decreased as the result of impaired sales of high-value housing, the decrease in the volume of housing production for investors, and lower profitability of infrastructure services compared to previous year. The profitability of International Construction Services was weakened by the costs incurred for rectifying the ammonia problem, which the company currently estimates at EUR 10 million. A cost provision of the said amount has been made for covering these costs in the third quarter.

In Group-level reporting, own-based residential development projects are only recognised as income upon project delivery. Following the IFRIC 15 adjustment, the Group's operating profit increased by 37 percent compared to the previous year, amounting to EUR 142.5 million (1-9/2010: EUR 103.7 million). Following the IFRIC 15 adjustment, the Group's operating profit margin was 4.5 (1–9/2010: 4.2%).

Profit before taxes increased by 54 percent

The financial expenses for the review period decreased compared to the previous year due to a decrease in the hedged ruble exposure and higher IAS 23 adjustment.

The Group's profit before taxes increased by 54 percent from the previous year to EUR 125.3 million in January–September (1-9/2010: EUR 81.6 million).

Earnings per share increased by 53 percent from the previous year to EUR 0.72 (1–9:2010: EUR 0.47).

Order backlog remained strong

Order backlog, EUR million	9/11	9/10	Change	9/11	6/11	Change
Building Services Northern Europe	886.1	743.0	19%	886.1	879.5	1%
Building Services Central Europe	523.9	589.1	-11%	523.9	554.1	-5%
Construction Services Finland	1,289.3	1,205.2	7%	1,289.3	1,239.5	4%
International Construction Services	850.1	884.8	-4%	850.1	896.4	-5%
Other items	-60.3	-55.2		-60.3	-60.2
YIT's segments total	3,489.0	3,366.9	4%	3,489.0	3,509.4	-1%
IFRIC 15 adjustment	249.3	360.6		249.3	287.5
YIT Group total	3,738.3	3,727.5	0%	3,738.3	3,796.9	-2%

The combined order backlog of YIT's segments was EUR 3,489.0 million at the end of September (9/2010: EUR 3,366.9 million) or approximately 4 percent higher than the previous year. The order backlog remained relatively unchanged from the end of June 2011, at which time it stood at EUR 3,509.4 million.

The order backlog of Building Systems Northern Europe increased from the previous year as the result of a slight revival in the demand for building services. The order backlog of Construction Services Finland increased in residential construction as well as in business premises.

Following the IFRIC 15 adjustment, YIT Group's order backlog was EUR 3,738.3 million at the end of September (9/2010: EUR 3,727.5 million).

Capital expenditure and acquisitions

Gross capital expenditure on non-current assets included on the balance sheet totalled EUR 43.9 million (1–9/2010: EUR 99.1 million) during January–September, representing 1.4 percent (1–9/2010: 4.0%) of revenue. Investments in construction equipment amounted to EUR 12.2 million (1–9/2010: EUR 6.7 million) and investments in information technology to EUR 9.0 million (1–9/2010: EUR 5.9 million). Other investments, including acquisitions, amounted to EUR 22.0 million (1-9/2010: EUR 86.5 million).

When assessing acquisitions, YIT's goal is to acquire companies that support YIT's strategy of becoming the leading building system service provider in the Nordic countries and Central Europe. The acquired company's business culture, areas of competence and payback time of the purchase price of the acquired company are key criteria.

During the third quarter, YIT completed two acquisitions in the Nordic countries. In Finland, YIT acquired the business operations of Sakari Timonen Oy, a specialist in refrigeration engineering. The company's annual revenue is approximately EUR 1 million. In Norway, YIT acquired the piping installations specialist Mercur. The company’s annual revenue is approximately EUR 20 million and it has approximately 100 employees. The acquisition of Mercur was one of YIT’s largest acquisitions in Norway after the Group expanded into Norway in 2003, and it will consolidate YIT's position as the leading supplier of building systems in Norway. Both of the companies acquired during the third quarter will be consolidated into the Building Systems Northern Europe segment.

Investments in growth impaired cash flow

The Group's operating cash flow for the review period after investments amounted to EUR -31.4 million (1–9/2010: EUR -56.1 million). In July–September, the Group's operating cash flow after investments amounted to EUR -47.3 million (7-9/2010: EUR -121.6 million). Operating cash flow in the third quarter was affected particularly by growth in sales inventory of own developed projects in Finland, plot investments and a temporary increase in receivables in Building Services Northern Europe.

At the end of September, the Group's invested capital amounted to EUR 1,849.4 million (6/2011: EUR 1,816.1 million). Of the Group's invested capital, 26 percent (6/2011: 29%), or EUR 472.7 million (6/2011: EUR 531.9 million) was invested in Russia. Exchange rate changes of the ruble decreased the capital invested in Russia by EUR 39 million in July–September.

The Group's capital invested in Russia is primarily accounted for by the International Construction Services segment. Capital invested in Russia decreased during the third quarter in spite of an increase in residential production. The use of capital has been made more efficient by decreasing the size of projects, selling apartments at an earlier construction phase, improved terms of payment and increasing the share of mortgage deals.

Return on investment amounted to 15.5 percent for the last 12 months (7/2010–6/2011: 15.6%). Invested capital is calculated by deducting non-interest bearing liabilities from the balance sheet total. The balance sheet total at the end of September was EUR 3,418.6 million (6/2011: EUR 3,387.4 million).

The Group is also prepared for macroeconomic uncertainty, liquidity position is strong

YIT has a diverse capital structure and a strong liquidity position. Cash reserves amounted to EUR 224.1 million (6/2011: EUR 234.1 million) at the end of September. In addition, committed credit and overdraft facilities amounting to a total of EUR 316.1 million are available. New committed credit facilities amounting to a total of EUR 100 million were agreed upon in September. YIT has a total of EUR 250 million in committed credit facilities, of which EUR 50 million are valid until December 2013 and EUR 200 million until December 2015. The committed credit facilities do not include an obligation to maintain financial key ratios, i.e. covenants.

The gearing ratio increased slightly compared with the end of June 2011, amounting to 86.8 percent at the end of September 2011 (6/2011: 79.9%). The equity ratio decreased slightly to 29.2 percent (6/2011: 29.7%). The equity ratio was impaired by the weakening of the ruble and the resulting negative translation difference of EUR 23.2 million under shareholders’ equity. Net financing liabilities increased from the end of June 2011 to EUR 755.0 million (6/2011: EUR 702.7 million).

Net financial expenses decreased to EUR 17.2 million during the review period (1–9/2010: EUR 22.1 million), or 0.5 percent of the Group's revenue (1–9/2010: 0.9%). The net financial expenses include EUR 9.2 million of capitalisations in compliance with IAS 23 (1–9/2010: EUR 4.8 million). The exchange rate differences included in the net financial expenses, totalling EUR -2.1 million (1–9/2010: EUR -6.5 million), were comprised almost entirely of costs of hedging debt investments in Russia. The hedged ruble exposure has decreased. At the end of September 2011, EUR 90.7 million of the capital invested in Russia was comprised of debt investments (6/2011: EUR 117.9 million) and EUR 382.1 million was equity investments or similar fixed net investments (6/2011: EUR 414.4 million). In accordance with YIT's hedging policy, the debt investments are hedged against exchange rate risk, while equity investments are not hedged due to their permanent nature.

Financial liabilities amounted to EUR 979.1 million (6/2011: EUR 936.8 million) at the end of September, and their average interest rate was 3.3 percent (6/2011: 3.5%). Fixed-interest loans accounted for 50 percent (6/2011: 58%) of the Group’s financial liabilities. Of the loans, 46 percent (6/2011: 41%) had been raised directly from the capital and money markets, 40 percent from banks and other financial institutions (6/2011: 44%) and 13 percent from the insurance companies (6/2011: 14%). The maturity distribution of long-term loans is balanced. A total of EUR 15.3 million of long-term loans will mature during the last quarter of 2011.

During the second quarter, YIT issued, under the company's programme for issuance of notes, a EUR 100 million bond targeted at institutional and other selected investors. Due by June 20, 2016, the bond carries an annual fixed coupon rate of 4.750 percent and has an issue price of 99.843 percent. The effective yield of the bond is 4.786 percent.

The total amount of construction-stage contract receivables sold to financial institutions was on par with the end of June 2011. The total amount of construction-stage contract receivables sold to financial institutions amounted to EUR 208.3 million at the end of September (6/2011: EUR 197.8 million). Of this amount, EUR 189.9 million (6/2011: EUR 190.6 million) is included in interest-bearing liabilities on the balance sheet and the remainder comprises off-balance sheet items in accordance with IAS 39. Interest expenses on receivables sold to financing companies amounted to EUR 3.8 million (1–9/2010: EUR 1.6 million) during the review period and these are fully included in the financial expenses of the review period.

Participations in the housing corporation loans of unsold completed residential units amounted to EUR 38.7 million (6/2011: EUR 37.3 million) at the end of September, and they are included in interest-bearing liabilities. The interest on the participations, EUR 1.0 million (1–9/2010: EUR 0.7 million), is included in housing corporation charges and is thus booked in project expenses.

YIT paid out dividends of EUR 81.3 million for 2010 during the second quarter in compliance with the resolution of the Annual General Meeting.

The Group's balanced business structure and solid financial position enable the implementation of YIT's growth strategy and the acquisitions and plot investments required by it. On the other hand, the Group has also prepared for macroeconomic uncertainty by strengthening its liquidity position.

STRATEGIC OBJECTIVES

YIT Corporation's Board of Directors confirmed the Group's strategy for 2012–2014 on September 21, 2011. The key strategic objective is balanced and profitable growth. The Group's other strategic long-term target levels remain unchanged: average annual revenue growth of more than 10 percent, return on investment of 20 percent, operating cash flow after investments sufficient for dividend payout and reduction of debt, equity ratio of 35 percent and dividend payout of 40–60 percent of net profit for the period. When determining the target levels, the assumption was made that economic growth in YIT’s market areas will continue.

In terms of business operations, the focus areas of YIT's growth continue to be building systems service and maintenance operations and residential construction. Growth is sought both through acquisitions and organically. Building system services will be increased in the Nordic countries and Central Europe, and residential construction in Finland, Russia, the Baltic countries and Central Eastern Europe. The Group's potential new market areas are Switzerland in building system services and Poland in construction services. Particular focus areas for growth include residential construction in Russia and building system services in Germany.

YIT published a stock exchange release on the confirmation of the strategy and materials for the Capital Market Day focusing on the strategic focus areas on September 22, 2011.

DEVELOPMENT BY BUSINESS SEGMENT

The development by business segment is presented using figures compliant with segment reporting.

BUILDING SERVICES NORTHERN EUROPE

Key figures

	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Revenue, EUR million	1,497.5	1,284.4	17%	511.9	416.8	23%
Operating profit, EUR million	55.8	65.2	-14%	19.9	20.2	-1%
Operating profit margin, %	3.7	5.1		3.9	4.8

	9/11	9/10	Change		9/11	6/11	Change
Order backlog, EUR million	886.1	743.0	19%		886.1	879.5	1%

Revenue, EUR million	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Finland	464.1	418.4	11%	164.8	136.3	21%
Sweden	492.6	392.4	26%	167.5	125.6	33%
Norway	377.9	343.2	10%	122.2	106.5	15%
Denmark	122.9	100.0	23%	42.1	37.3	13%
Russia and the Baltic countries	40.0	30.4	32%	15.3	11.1	38%
Total	1,497.5	1,284.4	17%	511.9	416.8	23%

The revenue of Building Services Northern Europe increased by 17 percent in January–September compared to the previous year, amounting to EUR 1,497.5 million (1–9/2010: EUR 1,284.4 million). Revenue for the third quarter increased by 23 percent to EUR 511.9 million (7–9/2010: EUR 416.8 million). Changes in foreign exchange rates increased the revenue for January–September by EUR 41.3 million compared to the previous year. The increase in revenue was widespread: revenue increased in all countries.

The segment’s operating profit fell short of the previous year due to strict price competition, especially in project operations, and the relatively low level of new building system and industrial investments. The segment’s profitability turned to a slight increase after the challenging first half of the year, thanks to efficiency improvement measures, but is still considerably lower than YIT's objectives.

Building Systems Northern Europe’s services are being restructured in all countries. During the review period, decisions were made on the reduction of approximately 800 employees in total as the result of the restructuring efforts. The efforts are estimated to result in annual savings of approximately EUR 40 million from 2013 onwards. The aim is to improve profitability at the segment level also through rearrangement of the branch office network. Furthermore, the aim is to improve the segment's profitability through more selective project acquisition and making procurement more efficient.

The order backlog at the end of September was 19 percent higher than the year before, and remained at the level of the end of June 2011. The margin level of the order backlog improved slightly during the third quarter. In some projects the clearly increased uncertainty of the general macroeconomic development has delayed the decision-making of clients after the review period.

Service and maintenance revenue continued to increase during the third quarter

YIT's aims to be the leading provider of technical systems and life-cycle services in the Nordic countries and Central Europe, particularly in energy-efficient solutions. The target is to increase service and maintenance operations at a faster rate than other operations. Service and maintenance operations generated EUR 922.8 million (1–9/2010: EUR 876.4 million), or 62 percent of the segment's total revenue (1–9/2010: 68%).

YIT has improved the offering of service and maintenance operations by developing a ServiFlex concept where customers can agree on extensive service entities in a single contract. The iServiflex service was launched in industrial services during the first quarter. Customers increasingly appreciate simplicity in purchasing services, and the number of extensive service agreements is estimated to increase.

New investments still relatively low

New investments in building systems recovered slightly during the review period, but still remained at a relatively low level. Demand among industrial customers was also focused on service and maintenance, and the demand for new investments remained at a low level during the third quarter.

YIT will provide a total technical solution connected with the renovation of the Norwegian Directorate of Taxes’ (Skattedirektoratet) offices, covering the HVAC engineering, plumbing systems and electrical systems as well as the automation systems. The value of the agreement concluded in the third quarter is approximately EUR 12 million with opportunities for additional sales and service agreements. The renovation work is expected to be complete in September 2013.

During the third quarter, YIT signed a contract for the building systems in the third expansion phase of the Kannelmäki shopping centre in Helsinki, Finland. The agreement covers all work related to plumbing, air conditioning, electrical aspects and building automation. The total value of the agreement is approximately EUR 11.5 million, and the work is expected to be completed in August 2013.

During the third quarter, YIT agreed on the delivery of building system installations at a Scania Trucks paintshop in Sweden. YIT entered into a two-year framework agreement on the delivery of building system services to 450 Handelsbanken offices in Sweden in the third quarter. In Denmark, YIT will deliver electrical installation work to Maersk Oil & Gas. The annual value of the agreement concluded in the third quarter is approximately EUR 2 million. In accordance with an agreement signed in the third quarter, YIT will be responsible for the delivery of air conditioning-related services to the new Foss Innovation research centre in Denmark.

BUILDING SERVICES CENTRAL EUROPE

Key figures

	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Revenue, EUR million	579.0	291.5	99%	210.8	134.2	57%
Operating profit, EUR million	24.0	7.5	220%	7.9	2.7	193%
Operating profit margin, %	4.2	2.6		3.7	2.0

	9/11	9/10	Change		9/11	6/11	Change
Order backlog, EUR million	523.9	589.1	-11%		523.9	554.1	-5%

Revenue, EUR million	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Germany	470.4	202.8	132%	173.6	100.7	72%
Austria	75.6	71.4	6%	29.0	24.9	16%
Poland, the Czech Republic, Hungary and other countries *)	33.0	17.3	91%	8.2	8.7	-6%
Total	579.0	291.5	99%	210.8	134.3	57%

*) YIT sold its Hungarian operations on the second quarter of 2011.

Building Services Central Europe’s revenue increased significantly in January–September compared to the previous year, mainly as the result of an acquisition that took effect at the beginning of September 2010. An increase in new building system investments also contributed to the growth of the revenue for the review period. Revenue for the third quarter increased by 57 percent to EUR 210.8 million (7–9/2010: EUR 134.2 million).

In Building Systems Central Europe, operating profit for the review period and the third quarter more than doubled compared to the previous year, particularly with the German operations improving their performance. Operating profit for the review period amounted to EUR 24.0 million (1–9/2010: EUR 7.5 million) and for the third quarter, EUR 7.9 million (7–9/2010: EUR 2.7 million).

The order backlog at the end of September was slightly lower than the previous year, amounting to EUR 523.9 million (9/2010: EUR 589.1 million). The margin level of the order backlog improved slightly during the third quarter.

Acquisition expanded operations in Central Europe

YIT aims to offer building system services, especially those requiring technical expertise, close to its customers. The goal is to reinforce the local market position organically and through acquisitions.

An acquisition whereby YIT acquired a company offering technical building system services in Central Europe was completed at the beginning of September 2010. The profitability of the acquired company was below YIT's average profitability, and YIT aims to improve the operating profit margin of the acquired operations by one percentage point per year. The development of the acquired business has proceeded as planned.

Growth in service and maintenance

Service and maintenance operations generated EUR 139.5 million (1–9/2010: EUR 74.1 million), or 24 percent of the segment's total revenue (1–9/2010: 25%). During the review period, the share of service and maintenance was significantly lower in Building Services Central Europe (24%) than in Building Services Northern Europe (62%), and therefore the opportunities for increasing it in Building Services Central Europe are good.

YIT made several new agreements, agreement expansions and extensions during the third quarter. YIT agreed on service deliveries with Commerzbank, among others. In addition, YIT agreed on the delivery of building system-related work to the City of Dresden’s cooling centre, which provides three historical buildings in the city with cooling services.

During the third quarter, YIT’s ServiFlex concept was in use in all countries where Building Services Central Europe operates. In Austria in particular, the volume of service and maintenance agreements pursuant to the concept increased considerably during the third quarter. ServiFlex agreements were signed with the Mövenpick hotel and resort chain, the Bernhard-Nocht Institute, Linz AG and Würth and Vodafone shops, among others, during the third quarter. In Poland, YIT’s agreement with the Panatoni logistics centres in Warsaw and Wroclaw was extended.

New investments remained at a relatively favourable level in Germany and Austria

Demand for new building system investments remained at a relatively favourable level in Germany and Austria during the third quarter. In Central Eastern Europe, the building system investment market is recovering slowly. After the review period, uncertainty has increased especially in the investment decisions of large projects.

In Germany, YIT signed several agreements on new investments in the third quarter. YIT will deliver technical building services totalling approximately EUR 8 million to the Urban Development and Environment Authority’s (BSU) new building in Hamburg. Also, YIT will deliver the technical solutions to the Viventis Berlin laboratory and the new pavilions at Berlin airport.

YIT will deliver new ventilation solutions to a nuclear power plant in Stade, developed and manufactured in YIT’s own research and development laboratory in Aachen. During the third quarter, YIT secured an agreement on the delivery of building services to a third biogas plant in Baden-Wurttemberg.

In Austria, the third quarter saw YIT enter into agreements on the delivery of building system services to a hospital located in Zell Am See and the control centre of the motorway tunnels in Ardning. With an agreement expansion concluded in the third period, YIT will also deliver automation technology to the tallest building in Austria, the DC Tower in Vienna. In addition, YIT will install building systems to the cleanrooms of Infineon Technologies Austria AG in Villach, Austria.

In Poland, YIT will deliver building services to Danfoss in Southern Poland, the University of Warsaw and Media Markt.

CONSTRUCTION SERVICES FINLAND

Key figures

	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Revenue, EUR million	891.2	807.8	10%	269.4	279.7	-4%
Operating profit, EUR million	79.5	78.7	1%	21.1	29.3	-28%
Operating profit margin, %	8.9	9.7		7.8	10.5

	9/11	9/10	Change		9/11	6/11	Change
Order backlog, EUR million	1,289.3	1,205.2	7%		1,289.3	1,239.5	4%

Revenue increased in January–September by 10 percent from the previous year as the volume of residential and business premises construction was at a good level. Revenue for the third quarter decreased by 4 percent from the previous year to EUR 269.4 million (7–9/2010: EUR 279.7 million). Sales of small residential units continued to be favourable in the third quarter, but sales of high-value housing were slower than before. The revenue for the third quarter was weakened by the decrease in the volume of housing production for investors after projects were completed. The volume of infrastructure services was normal in the third quarter.

The operating profit for the review period was on par with the previous year. The operating profit of the segment includes EUR -4.0 million (1–9/2010: EUR -1.5 million) of borrowing costs according to IAS 23. The operating profit margin for the review period decreased slightly compared to the previous year. The operating profit for the third quarter decreased by 28 percent from the previous year to EUR 21.1 million (7–9/2010: EUR 29.3 million). The operating profit for the third quarter includes EUR -0.9 million (7–9/2010: EUR -0.7 million) of borrowing costs according to IAS 23. The decrease in the segment’s operating profit was the result of slower sales of high-value housing, the decrease in the volume of housing production for investors, and lower profitability of infrastructure services compared to previous year.

The order backlog increased by 7 percent from the previous year, particularly as a result of new residential and business premises development projects. Compared to the end of June 2011, the order backlog increased by 4 percent, amounting to EUR 1,289.3 million (6/2011: EUR 1,239.5 million).

The segment's capital tied into plot reserves totalled EUR 284.8 million (9/2010: EUR 283.5 million) at the end of September. The plot reserves included 1,405,000 (9/2010: 1,682,000) m² of floor area of residential plots and 664,000 (9/2010: 904,000) m² of floor area of plots for business premises.

Residential sales to consumers at a moderate level

YIT's goal is to strengthen its position as the largest housing developer in Finland. Residential sales continued at a moderate level in the third quarter. During January–September, YIT sold a total of 1,444 residential units (1–9/2010: 1,412) directly to consumers, of which 396 were sold in the third quarter (7-9/2010: 435). In the third quarter, residential sales were increasingly focused on small residential units. Sales continued at the normal level in October. Housing prices increased at a moderate rate during the review period.

The focus of YIT's housing construction is on residential development projects aimed directly at consumers in accordance with market demand. In January–September, YIT started the construction of a total of 1,841 (1–9/2010: 2,003) residential units aimed directly at consumers. Of the start-ups, 561 took place in July–September (7–9/2010: 767). YIT has continued to replenish actively its plot reserves by acquiring plots and making preliminary agreements on plots in order to ensure good opportunities for residential start-ups also in the future.

The sales inventory has been strengthened further with new residential start-ups. At the end of September, YIT had 2,072 (9/2010: 1,624) unsold residential units. The number of completed, unsold residential units has remained at a relatively low level, amounting to 237 (9/2010: 116) at the end of September. Of the residential units under construction, 49 percent (9/2010: 67%) have been sold, which decreases YIT's sales risk.

YIT aims to keep its residential start-ups in 2011 on par with the previous year, and YIT is well prepared to adjust its residential production according to the market situation. The costs of completing the current residential and business premises development projects amounted to EUR 373.9 million at the end of September 2011.

Residential construction in Finland, residential units

	1-9/11	1-9/10	Change	7-9/11	4-6/11	Change
Sold	1,803	1,954	-8%	456	755	-40 %
- of which directly to consumers	1,444	1,412	2%	396	513	-23 %
Start-ups	2,200	2,545	-14%	621	917	-32 %
- of which directly to consumers	1,841	2,003	-8%	561	675	-17%
Completed	3,053	1,776	80%	919	1,254	-16%
- of which directly to consumers	1,856	559	246%	630	701	1%
Under construction at the end of the period	3,577	4,543	-20%	3,577	3,875	-6%
- of which sold at the end of the period	1,742	3,035	-43%	1,742	2,176	-20%
For sale at the end of the period	2,072	1,624	31%	2,072	1,907	11%
- of which completed	237	116	104%	237	208	14%

Continued improvement in the business premises market

The positive development of the business and office premises market continued also during the third quarter, and the order backlog of YIT's business premises operations remained at a favourable level. The leasing of business premises under construction proceeded moderately during the third quarter: lease agreements were signed on approximately 4,300 m² of premises. Business premises rents increased slightly in the third quarter, and investors' yield requirements were on par with the previous quarter. Interest in Finland among international property investors has increased from the previous year.

During the third quarter, YIT started the construction work for MotorCenter Avia in Koivuhaka, Vantaa, which is owned by Tapiola Mutual Pension Insurance Company. According to the contract agreement, YIT will implement the approximately 2,900-square metre business centre based on the MotorCenter concept on a plot owned by the investor. The value of the contract is approximately EUR 5 million, and the premises, which are scheduled for completion in June 2012, are already mainly leased with long-term lease agreements.

YIT signed a contract and project agreement during the third quarter with Fennia Life on the third phase of MotorCenter Konala. The value of the project agreement is approximately EUR 6.5 million, and the premises, which are scheduled for completion in June 2012, are already mainly leased with long-term lease agreements. MotorCenter Konala will be built in four phases and will have a total rentable area of approximately 15,000 m². When completed in September 2012, the centre will offer the products and services of nearly twenty specialty shops in the fields involved. MotorCenter Avia and Konala constitute a part of the YIT-developed MotorCenter concept, focused on products and services for motorists, technical specialty shops and the recreational activities industry.

YIT will realise the Finnish Nature Centre Haltia in Nuuksio, Espoo The project will feature ecological timber construction, using only massive timber structures and timber cladding, apart from the underground basement. The value of the project is approximately EUR 11 million, and the construction work is expected to be completed in early 2013.

According to an agreement signed during the third quarter, YIT will take responsibility for the design, construction and maintenance of the Huhtasuo comprehensive school and day care facility as well as life cycle services until 2033. The value of the project investment is approximately EUR 35 million, and the total value of the lifecycle project is approximately EUR 55 million. The day care facility will be constructed in two phases during 2012–2015.

Turn for the better in infrastructure services

Demand for infrastructure construction picked up slightly towards the end of the review period, but competition in the field continued to be tight. Investments have decreased in the municipal sector and decision-making has been postponed. Major road projects are expected to start this year and next year, including the construction and renovation of the E18 motorway between Koskenkylä and Kotka. A consortium formed by YIT, Destia and Meridiam Infrastructure Finance II S.á.r.l. was selected as the preferred bidder for the project, which will be realised using the lifecycle model. The project has been granted an order authorisation of EUR 650 million, within which the agreement negotiations following the tendering process will be held with the Finnish Transport Agency. The aim is to sign the service agreement in November 2011, and the construction of the motorway is expected to begin towards the end of 2011. The road section is expected to be completed in full by the end of 2015.

Activity in infrastructure services improved during the third quarter, and the order backlog of YIT’s infrastructure services strengthened. YIT won, among others, the project for constructing a cover over Motorway 3 in Hämeenlinna, Finland, with a value of approximately EUR 30 million. The construction of the cover will begin in September 2011, and the entire project will be completed in phases during spring 2013. In addition, YIT signed an agreement on an excavation project for the Niittykumpu station and metro tunnel for Helsinki's westward metro line. The total value of the project is EUR 21.6 million. The excavation work began in September 2011 and the contract is due for completion in December 2013.

In addition, opportunities will open up in road and regional maintenance contracts, rock engineering and investments in mining operations.

INTERNATIONAL CONSTRUCTION SERVICES

Key figures

	1-9/11	1-9/10	Change	7-9/11	7-9/10	Change
Revenue, EUR million	343.3	330.9	4%	122.5	111.9	9%
Operating profit, EUR million	19.8	21.3	-7%	-0.9	9.2
Operating profit margin, %	5.8	6.4		-0.7	8.2

	9/11	9/10	Change		9/11	6/11	Change
Order backlog, EUR million	850.1	884.8	-4%		850.1	896.4	-5%

In International Construction Services, residential demand remained at a good level in the review period, and the segment’s residential sales were strong in the third quarter. Revenue remained at the level of the previous year during the review period, and was EUR 343.3 million (1–9/2010: EUR 330.9 million). The operating profit for the third quarter increased by 9 percent from the previous year to EUR 122.5 million (7–9/2010: EUR 111.9 million). The segment's residential sales have also continued at a favourable level in October.

The operating profit for the review period decreased slightly from the previous year to EUR 19.8 million (1–9/2010: EUR 21.3 million). The operating profit of the segment includes EUR -2.2 million (1–9/2010: EUR -0.3 million) of borrowing costs according to IAS 23. The operating profit for the third quarter decreased from the previous year to EUR -0.7 million (7–9/2010: EUR 9.2 million). The operating profit for the third quarter includes EUR -0.9 million (7–9/2010: EUR -0.2 million) of borrowing costs according to IAS 23.

Excessive levels of ammonia have been found in residential units built by the company in St. Petersburg. The cause for the above-norm ammonia level is an additive in concrete used by the supplier. The segment’s profitability is weakened by the costs incurred for rectifying the ammonia problem, which the company currently estimates at EUR 10 million. A cost provision of the said amount has been made for covering these costs in the third quarter. YIT is negotiating over compensation with insurance companies and concrete suppliers. By the end of September 2011, YIT has received 50 complaints from its customers in connection with the odour problem in the residential units. At the end of September, YIT redeemed one residential unit and agreed on repairs to eight other residential units. In addition, YIT has withdrawn 83 completed residential units from sale.

The sale of projects at an earlier stage of construction than before had an effect on the recognition of revenue and operating profit: only a limited amount of revenue is recognised for projects that are sold in their early stage of construction. The volume of project contracting increased in the Baltic countries during the third quarter, which impaired the segment’s average profitability.

The order backlog decreased by 4 percent compared to the previous year and 5 percent from the level of June 2011. The segment's order backlog was decreased by the weakening of the ruble, which had an impact of EUR -42.1 million in January–September. The order backlog includes two housing projects whose construction was halted in Russia in October 2008 due to market uncertainties. At the end of September 2011, the value of projects that were still suspended amounted to EUR 83 million (9/2009: EUR 161 million). Restarting the suspended projects will not increase the order backlog.

The costs of completing the current residential and business premises development projects amounted to EUR 276.0 million at the end of September 2011.

The segment's capital tied into plot reserves totalled EUR 349.8 million (9/2010: EUR 282.8 million) at the end of September. The plot reserves included 2,453,000 (9/2010: 2,376,000) m² of floor area of residential plots and 694,000 (9/2010: 699,000) m² of floor area of plots for business premises in Russia, the Baltic countries, the Czech Republic and Slovakia.

Strong residential sales volume continued in Russia

Russia generated 82 percent (1–9 /2010: 90%) of the revenue of International Construction Services for January–September. Revenue decreased by 5 percent in Russia compared with the previous year, amounting to EUR 280.8 million (1-9/2010: EUR 297.1 million).

The capital tied into plot reserves in Russia totalled EUR 269.4 million (9/2010: EUR 208.4 million) at the end of September. The plot reserves included 2,117,000 (9/2010: 2,025,000) m² of floor area of residential plots and 551,000 (9/2010: 563,000) m² of floor area of plots for business premises.

In Russia, the focus of operations is on residential development projects in St Petersburg, Moscow and cities in the Moscow region, Yekaterinburg, Rostov-on-Don and Kazan. YIT won the plot auction held in the city of Serpukhov, located 100 kilometres from Moscow, during the third quarter. YIT estimated that it will start its first residential project in Serpukhov during the last quarter of 2011.

In September, the Kratovo detached house project constructed by YIT in the Moscow region won the RREF award for best detached house development project in September. YIT’s Triniti residential building entity in St. Petersburg, currently under construction, won the best residential project category in the “Quality leader in construction 2011” competition in St. Petersburg. The residential building project fared well in all stages of the competition, and it was chosen the Finnish model project in Northwest Russia.

During January–September, YIT sold a total of 2,414 residential units (1–9/2010: 2,216) in Russia, of which 957 were sold in the third quarter (7–9/2010: 717). Residential sales have been supported by YIT's established position as a reliable construction company in Russia, YIT's diverse housing offering, YIT's own marketing and promotion measures and extensive housing loan cooperation with banks. The significance of loan financing has increased in Russia, and in the third quarter, the customer has taken out a housing loan in 39 percent of YIT's residential sales.

Residential sales were supported by the piling up of the demand for new housing and continued moderate interest rates of mortgages. Residential sales focused increasingly on projects at an early stage of construction in Russia during the review period, meaning that only a limited amount of revenue is recognised for the sold residential units.

Housing prices increased at a moderate rate during the review period in Russia, and YIT slightly increased the prices of its residential units throughout Russia.

YIT has actively started new residential projects in Russia, and the aim is to increase the number of residential start-ups during 2011 compared to 2010 in accordance with the market situation. The number of residential start-ups in the third quarter remained on par with the previous year, amounting to 665 residential units (7–9/2010: 671). The number of residential units for sale has been carefully increased during the year, amounting to 4,702 at the end of September (9/2010: 3,931). The number of completed unsold residential units decreased from the previous year, amounting to 394 at the end of September (9/2010: 602). Of the residential units under construction, 33 percent had been sold (9/2010: 43%).

A total of 882 residential units (1–9/2010: 940) were completed in Russia during the review period. After the handover of residential projects, YIT offers its customers service and maintenance. At the end of the review period, YIT was responsible for the service and maintenance of approximately 9,500 residential units.

Residential construction in Russia, residential units

	1-9/11	1-9/10	Change	7-9/11	4-6/11	Change
Sold	2,414	2,216	9%	957	782	22%
Start-ups	2,905	2,543	14%	665	1,089	-39%
Completed 1)	882	940	-6%	539	238	126%
Under construction at the end of the period 2)	6,472	5,797	12%	6,472	6,346	2%
- of which sold at the end of the period	2,164	2,468	-12%	2,164	1,762	23%
For sale at the end of the period	4,702	3,931	20%	4,702	4,993	-6%
- of which completed	394	602	-35%	394	409	-4%

1) Completion of the projects requires commissioning by the authorities.

2) At the end of September 2011, YIT had 365 (9/2010: 928) residential units at Russian sites whose construction was suspended in the autumn of 2008. These residential units are not included in the figure for residential units under construction shown in the table. Changes in the number of residential units may take place after the start of construction due to the division or combination of residences.

Construction of business premises still on a low level in Russia

YIT's volume in the Russian business premises market remained at a low level during the review period. During the third quarter, YIT started the construction of a small shopping centre at its Pushkino residential area in the Moscow region. Marketing of the Gorelovo industrial park close to St. Petersburg has been continued. The competitive advantages of the area are its good location and completed infrastructure connections. Interest in the area has increased, and negotiations with potential customers will continue. In some projects the clearly increased uncertainty of the general macroeconomic development has delayed the decision-making of clients.

Residential demand improved in the Baltic countries and Central Eastern Europe

YIT's aim is to increase its residential production in the Baltic and Central Eastern European countries. The volume of YIT’s residential production in these countries continued to grow during the third quarter. Estonia, Latvia, Lithuania, the Czech Republic and Slovakia accounted for 18 percent (1–9/2010: 10%) of the revenue of International Construction Services for January–September. Revenue generated in these countries increased by 83 percent compared to the year before to EUR 61.9 million (1–9/2010: EUR 33.8 million). The capital tied into plot reserves in the Baltic countries, the Czech Republic and Slovakia totalled EUR 80.4 million (9/2010: EUR 74.5 million) at the end of September. The plot reserves included 336,000 (9/2010: 351,000) m² of floor area of residential plots and 143,000 (9/2010: 136,000) m² of floor area of plots for business premises.

The picking up of project contracting in the Baltic countries increased the operational volume. The weaker profitability of competitive tendering compared to residential development projects and its increased share of the segment’s revenue impaired the segment’s profitability in the third quarter. YIT aims to shift the focus of its operations further from project contracting to residential development projects with new residential start-ups.

The construction of 468 (1–9/2010: 329) residential units was started in Estonia, Latvia, Lithuania and the Czech Republic during January–September. Of the start-ups, 152 took place in the third quarter (7–9/2010: 96). At the end of September, there were 698 (9/2010: 329) residential units under construction. During the review period, the housing prices remained stable.

YIT's residential sales inventory has improved in the Baltic countries, the Czech Republic and Slovakia, and YIT aims to increase the number of residential units for sale in accordance with demand. In January–September, a total of 267 (1–9/2010: 33) residential units were sold in these countries, of which 111 were sold in July–September (7–9 /2010: 13). At the end of September, there were 645 (9/2010: 336) residential units for sale, of these 130 were (9/2010: 24) completed. The number of residential units completed during the review period was 141 (1–9/2010: 0).

Residential construction in the Baltic countries and Central Eastern Europe, residential units

	1-9/11	1-9/10	Change	7-9/11	4-6/11	Change
Sold	267	33	709%	111	99	12%
Start-ups	468	329	42%	152	181	-16%
Completed	141	0		60	0
Under construction at the end of the period	698	329	112%	698	611	14%
- of which sold at the end of the period	183	17	976%	183	108	69%
For sale at the end of the period	645	336	92%	645	609	6%
- of which completed	130	24	442%	130	106	23%

BUILDINGS AND INDUSTRY NEED ENERGY-SAVING SERVICES

YIT has created a three-part action programme aimed at maintaining its position as a leader in constructing and maintaining sustainable living environments. YIT's aim is to construct and maintain future living environments in a manner that increases the quality factors of life and minimises the use of natural resources. In addition, YIT continuously develops its leading technological expertise in implementing energy-efficient and environmentally friendly building system solutions and renewable energy production solutions for residential environments.

YIT is also focusing on implementing distributed energy production solutions. YIT has continued the product development of wind power by developing foundations for elevated wind power plants, aiming to provide added value particularly to wind power projects constructed in wooded areas.

Under an agreement with the City of Porvoo, signed in the third quarter, YIT will deliver four energy-efficient day care centres based on the lifecycle model. YIT will be responsible for the Aurinkopelto, Omenatarha, Ylä-Haikkoo and Peiponpesä day care centres' design, construction, energy solutions and property maintenance services and energy consumption for 20 years. The total estimated construction cost of the day care centres is EUR 11 million, and the construction work is expected to be completed in summer 2012. Energy-efficiency and the utilisation of renewable energies will be implemented through structural solutions, underfloor heating, the combination of terrestrial heat and solar collectors, LED technology and motion detectors used in the lighting, and presence-based ventilation, among other solutions.

In Germany, YIT secured a contract according to which the company will deliver technical building services totalling EUR 8 million to the Urban Development and Environment Authority’s (BSU) new building in Hamburg, thereby reducing energy consumption and the use of natural resources. Two heat pumps, each with an output of 305 kW, will be responsible for heating the building, while chiller waste heat will be used to heat water. A geothermal system will provide passive cooling, and highly efficient heat recovery systems and 14 ventilation and air-conditioning systems will provide a pleasant climate.

In addition, according to an agreement signed during the third quarter, YIT will deliver energy-saving solutions to the Leibniz-Rechenzentrum in Garching, Germany, focusing particularly on cooling technology to utilise the heat produced by one of the world's fastest computers located in the centre for heating the building.

An energy-saving project realised by YIT for the City of Jyväskylä has achieved annual savings of 30 percent in electric energy at a training ice rink, corresponding to savings of approximately EUR 80,000. In addition to reducing energy consumption, the indoor conditions at the ice rink have improved considerably. Recently, YIT also realised the renewal of approximately 120 ventilation blowers into more energy-efficient ones in 16 properties belonging to the City of Jyväskylä through a five-year ESCO saving and financing agreement.

PERSONNEL

In January–September 2011, the Group employed 26,229 (1–9/2010: 23,796) people on average. At the end of the review period, the Group employed 26,502 (9/2010: 25,943) people.

The cost effect of YIT’s share-based incentive scheme was about EUR 3.1 million in January–September (1–9/2010: EUR 2.5 million).

Personnel by business segment	9/11	9/10	Change	9/11	6/11	Change
Building Services Northern Europe	16,273	15,845	3%	16,273	16,269	0%
Building Services Central Europe	3,569	3,849	-7%	3,569	3,597	-1%
Construction Services Finland	3,416	3,221	6%	3,416	3,730	-8%
International Construction Services	2,837	2,681	6%	2,837	2,785	2%
Corporate Services	407	347	17%	407	426	-4%
YIT Group total	26,502	25,943	2%	26,502	26,807	-1%

Personnel by country/region	9/11	9/10	Change	9/11	6/11	Change
Finland	9,377	9,333	0%	9,377	10,031	-7%
Sweden	4,790	4,296	11%	4,790	4,681	2%
Norway	3,623	3,461	5%	3,623	3,423	6%
Germany	2,677	2,883	-7%	2,677	2,706	-1%
Russia	2,516	2,397	5%	2,516	2,465	2%
Denmark	1,370	1,462	-6%	1,370	1,369	0%
Baltic countries	1,092	1,131	-3%	1,092	1,074	2%
Other countries (Central Europe excluding Germany)	1,057	980	8%	1,057	1,058	0%
YIT Group total	26,502	25,943	2%	26,502	26,807	-1%

YIT wants to take care of its personnel and be a desired employer in the future as well. The most important targets for development with regard to its personnel are YIT’s culture, competence management and administration and the well-being of employees. YIT’s culture means, among other things, everyday operations guided by the Group's strong values and ethical guidelines. All of these are promoted across different functions and countries in accordance with each unit's needs and development phases.

For example, this autumn two Finnish universities of applied sciences will begin a “YIT studies” programme, with the studies taking place with YIT personnel as instructors and involving several construction site visits, for example. The aim is to support the availability of competent personnel in the future. The fourth internal manager training course is about to begin in Russia, with YIT employees developing as people and business leaders and becoming familiar with YIT's management practices. In the Nordic countries, on the other hand, project management and work safety training is underway.

During the third quarter, YIT was awarded the title “Most responsible summer employer in Finland” in a competition that emphasised, among other things, the meaningfulness of summer job tasks, induction and the instruction of the summer employees, equality and fairness.

RESOLUTIONS PASSED AT THE ANNUAL GENERAL MEETING

YIT Corporation’s Annual General Meeting was held on March 11, 2011. The Annual General Meeting adopted the 2010 financial statements, discharged the members of the Board of Directors and the President and CEO from liability, confirmed the dividend as proposed by the Board of Directors, decided on the Board of Directors' fees and elected the auditor. The Annual General Meeting confirmed the composition of the Board of Directors: Henrik Ehrnrooth (Chairman), Reino Hanhinen (Vice Chairman), Kim Gran, Eino Halonen, Antti Herlin and Satu Huber were re-elected as Board members. In addition, Michael Rosenlew was elected as a new Board member.

In its organisational meeting on March 11, 2011, the Board elected the chairmen and members of the Audit Committee and the Nomination and Rewards Committee from among its number.

YIT Corporation published stock exchange releases on the resolutions passed at the Annual General Meeting and the organisation of the Board of Directors on March 11, 2011. The stock exchange releases and a presentation of the members of the Board of Directors are available at YIT's website: www.yitgroup.com.

SHARES AND SHAREHOLDERS

The company has one series of shares. Each share carries one vote and confers an equal right to a dividend.

Share capital and number of shares

YIT Corporation's share capital and the number of shares outstanding did not change during the review period. YIT Corporation’s share capital was EUR 149,216,748.22 at the beginning of 2011 (2010: EUR 149,216,748.22), and the number of shares outstanding was 127,223,422 (2010: 127,223,422).

Treasury shares and authorisations of the Board of Directors

In accordance with the Limited Liability Companies Act, the General Meeting decides on the buyback and conveyance of shares, as well as any decisions leading to changes in the share capital. The Annual General Meeting of YIT Corporation resolved on March 11, 2011, to authorise the Board of Directors to decide on purchases of the company's shares and on share issues as proposed by the Board of Directors. The share issue authorisation also includes an authorisation to decide on the conveyance of treasury shares.

YIT Corporation held 2,145,000 treasury shares at the beginning of the review period, purchased on the basis of the authorisation given by the General Meeting of October 6, 2008.

YIT Corporation's Board of Directors confirmed the rewards for the 2010 earning period under the share-based incentive scheme for YIT's management on April 28, 2011, which were conveyed as a directed share issue without consideration during the review period. In the share issue, 196,910 YIT Corporation shares were issued and conveyed without consideration to the key persons participating in the Share Ownership Plan according to the terms and conditions of the plan. By the end of the review period, 3,302 shares had been returned to YIT. At the end of the review period, the company held 1,951,392 own shares. During the review period, no shares in the parent company were owned by subsidiaries.

At the end of the period, the parent company's Board of Directors did not have authorisations to issue convertible bonds or bonds with warrants.

Trading in shares

The price of YIT's share was EUR 18.65 at the beginning of the year (January 1, 2010: EUR 14.44). The closing rate of the share on the last trading day of the review period was EUR 11.33 (September 30, 2010: EUR 17.39). The share price decreased by approximately 40 percent during January–September. The highest price of the share in January–September was EUR 21.92 (1–9/2010: EUR 17.96), the lowest was EUR 10.10 (1–9/2010: EUR 12.98) and the average price was EUR 17.54 (1–9/2010: EUR 15.98). Share turnover on Nasdaq OMX in January–September amounted to 101,015,422 shares (1–9/2010: 102,882,735). The value of turnover was EUR 1,778.2 million (1–9:2010: EUR 1,644.8 million).

YIT Corporation’s market capitalisation at the end of the review period was EUR 1,419.3 million (9/2010: EUR 2,175.1 million). The market capitalisation has been calculated excluding the shares held by the company.

Number of shareholders and flagging notifications

At the end of September 2011, the number of registered shareholders was 33,763 (9/2010: 32,751). At the end of June 2011, the number of shareholders was 32,975. At the end of September, a total of 35.0 percent (9/2010: 36.3%) of the shares were owned by nominee-registered and non-Finnish investors.

During January–September, the company received no "flagging notifications" of change in ownership in YIT Corporation in accordance with Chapter 2, section 9 of the Securities Market Act.

MAJOR SHORT-TERM BUSINESS RISKS AND RISK MANAGEMENT

YIT has specified the major risk factors and their management from the point of view of the Group as a whole, taking the special characteristics of YIT’s business operations and environment into consideration. Risks are divided into strategic, operational, financial and event risks.

YIT has developed the Group's business structure to be balanced and tolerant of economic fluctuations. The share of steadily developing service and maintenance operations has been increased. Cash flow-generating (building system and industrial services, contracting) and capital-intensive business operations (residential and commercial development production) balance the risks related to business operations and the use of capital and enable better risk management at the Group level.

Operations have been expanded geographically so that economic fluctuations impact operations at different times in different markets. Continuous monitoring and analysis make it possible to react quickly to changes in the operating environment and also to utilise the business opportunities provided by the changes.

The Group's aim is to grow profitably, both organically and through acquisitions. The building services operations in Central Europe have grown as the result of the acquisition completed at the beginning of September 2010. The integration and development of the acquired companies has proceeded as planned.

YIT's typical operational risks include risks related to plot investments, sales risk of residential and commercial development projects and risks related to contract tenders, service agreements, project management and personnel. YIT manages sales risk by matching the number of housing start-ups with the estimated residential demand and the number of unsold residential units (the figures for residential production are presented under Development by business segment) and by normally securing key tenants and/or the investor prior to starting a business premises project. A strong increase in interest rates is a key risk related to the demand for residential units.

YIT tests the value of its plots as required by IFRS accounting principles. Plot reserves are measured at acquisition cost and the plot value is impaired when it is estimated that the building being constructed on the plot will be sold at a price lower than the sum of the price of the plot and the construction costs. No write-offs were made to plots in the review period.

Financing and financial risks include liquidity, credit and counterparty, interest rate and currency risks and risks related to the reporting process. Financing and financial risks are managed through accounting and financing policies, internal control as well as internal and external audit.

YIT's most significant currency risk is related to investments in ruble terms. Capital invested in Russia totalled EUR 472.7 million (6/2011: EUR 531.9 million) at the end of the period. The amount of net equity investments at the end of the period was EUR 382.1 million (6/2011: EUR 414.4 million). The net investments in the Russian subsidiaries are unhedged in accordance with the treasury policy, and a potential devaluation of the ruble would have a negative impact equal to the amount of equity on the Group's shareholders' equity. Debt investments amounted to EUR 90.7 million (6/2011: EUR 117.9 million) at the end of the period, and this exposure was hedged in full. The differences in the interest rates between the euro and ruble have an effect on hedging costs and therefore net financial expenses.

Possible event risks include accidents related to personal or information security and sudden and unforeseen material damage to premises, project sites and other property, resulting from, for example, fire, collapse and theft. YIT complies with a group-wide security policy covering the different areas of security.

A more detailed account of YIT's risk management policy and the most significant risks was published in the Annual Report 2010. Financing risks are described in more detail in the notes to the financial statements for 2010.

OUTLOOK FOR 2011

YIT Corporation revised its outlook regarding operating profit for 2011 in a stock exchange release on October 12, 2011. YIT reiterates its estimate issued on October 12, 2011, according to which the total operating profit of all its business segments will increase in 2011 compared to 2010. In its outlook issued in connection with the financial statements for 2010 (February 4, 2011), YIT estimated that in 2011, the combined operating profit of the business segments would grow clearly compared to 2010.

Earlier guidance:

YIT estimated that in 2011, the combined revenue of the business segments will grow and operating profit will grow clearly compared to 2010.

New guidance:

YIT estimates that in 2011, the combined revenue and operating profit of the business segments will grow compared to 2010.

The profit outlook is based on the segment-level reporting, i.e. recognition of income based on the percentage of completion.

Building Services Northern Europe

In Building Services Northern Europe, the service and maintenance market is estimated to grow at a faster rate than the project market, which is dependent on new investments. The opportunities for growth in service and maintenance are favourable in all Nordic countries. The building system services market is developing in the Baltic countries and Russia, but it will take some time for the culture of purchasing services to consolidate itself. New investments in building systems are expected to begin to increase slightly compared to the low level of the previous year, and typically a growth in new investments can be seen in the demand for building system services with a delay. New investments in building systems are expected to grow by 2–3 percent in business premises construction and 3–5 percent in residential construction during 2011. Due to market uncertainty, customer’s investment decisions may, however, take longer than before.

The efficiency enhancement measures of companies and government open up opportunities for the outsourcing of real estate services. Investments by industrial customers began to increase in Finland in the previous year, and their moderate increase is expected to continue. The demand for industrial maintenance services will continue to be relatively steady.

Building Services Central Europe

In Building Services Central Europe, the service and maintenance market as well as the project market, which is dependent on new investments, are expected to grow at the same rate. The opportunities for growth in service and maintenance are favourable, particularly in Germany. The building system services market in Central Eastern Europe (Poland, the Czech Republic and Romania) is developing.

New investments in building systems have recovered to a relatively good level in the countries where YIT operates in Central Europe. In spite of market uncertainty, new investments in building systems are expected to increase by 2–3 percent in 2011. Investments by industrial customers are at a good level, and the demand for business premises has also increased in 2011.

YIT has an extensive network of local offices in both the Nordic countries and the markets where Building Services Central Europe operates, and a strong market position in building system and industrial service and maintenance operations, projects and energy-efficiency services. Growth in the demand for energy-efficiency services is possible in the next few years with high energy prices and tightening environmental legislation, particularly in Austria and Germany. There are many small companies operating in the technical building system market, and the consolidation of the market will provide opportunities for acquisitions. YIT's strength is its extensive service portfolio and possibility to guarantee a high level of service to its customers. YIT's goal is to be the leading provider of technical system maintenance in the Nordic countries and Central Europe.

During the most recent slump, the building system services market in Central Eastern Europe decreased significantly due to a decrease in foreign investments and low domestic demand. In Poland, the market is expected to continue to recover, but in the Czech Republic the market is expected to improve slowly. The financial situation in the rest of Europe has a strong effect on the development of the Central Eastern Europe market.

Construction Services Finland

With regard to Construction Services Finland, housing demand is expected to continue to be good in the long term. In Finland, residential demand is supported in the long term by structural factors, such as migration, population growth and decreasing family sizes. According to the construction industry's estimates, the construction of 30,500 residential units will start in 2011, while VTT's long-term estimate of the need for new housing is 35,000 residential units per year. In the short term, the risk of increasing unemployment rates may slow down consumers’ decision-making.

The supply situation of new residential units has normalised, and the supply of new residential units on the market is higher than in recent years. YIT actively started new residential projects in 2010 and 2011, which offers the company a solid starting point for the rest of 2011.

The increase in housing prices has levelled off, and YIT expects stable prices in the future. Also, the increase in construction costs has levelled off. YIT’s good plot reserves and geographically extensive operations enable continuing a high level of residential development start-ups and residential production in 2011. YIT aims to keep its residential start-ups in 2011 on par with the previous year, and YIT is well prepared to adjust its residential production according to the market situation.

The business premises market has picked up: investors’ yield requirements have stabilised, and business premises rents have turned to an increase during the third quarter. Vacancy rates are still high, and new investments in office property is likely to remain at a relatively low level. A number of offices, especially old and vacant ones, will not return to use as business premises due to their poor location or condition. The construction of logistics and business properties is expected to remain stable. Due to market uncertainty, customer’s decision-making may take longer. The need for renovation will rise steadily.

YIT has major road projects underway in infrastructure services, and the Finnish infrastructure market will see new traffic-related projects being started in 2011 and 2012. Opportunities will also open up in road and regional maintenance contracts, rock engineering and investments in mining operations. The need for stabilising public finance has an impact on the public sector's investments, and there is an element of uncertainty connected with the project start-up decisions. The competition in infrastructure construction will remain tight, but the latter half of 2011 is expected to be brisker than the first two quarters. YIT has special expertise in infrastructure and a solid position as the largest private provider of road maintenance services in Finland.

International Construction Services

YIT aims to consolidate its position throughout the business area of the International Construction Services segment.

There is a great need for new housing in Russia, and therefore the demand outlook for residential units aimed at YIT's customer segment is strong in the long term. The demand for housing in Russia is supported by continued relatively good consumer confidence and continued good availability of housing loans. However, the interest rates of mortgage loans have slightly increased. In Russia, housing demand also depends on oil prices and the ruble exchange rate.

During the review period, housing prices increased at a moderate rate in Russia. The supply in the residential market has normalised with the start-up of new residential projects. YIT has strengthened its reputation as a reliable construction company and developed its sales process. The availability of loans to customers has been improved through extensive cooperation with banks.

The residential market has also picked up in the Baltic countries and Central Eastern Europe. Consumers need more room and quality of housing in the long term in the Baltic countries and Central Eastern Europe. Residential demand has improved in these countries. The financial situation in the rest of Europe has a strong effect on the development of the Baltic and Central Eastern Europe markets.

Residential start-ups will be increased in 2011 in accordance with demand throughout the area of operations of International Construction Services: Russia, the Baltic countries, the Czech Republic and Slovakia. YIT aims to increase the number of residential start-ups in 2011 compared to 2010. So far, the business premises market has been softer than residential construction in all of the countries where International Construction Services are present. Construction of offices is low in Russia, but the demand for industrial and business premises is increasing. Several business premises projects are being prepared in the Baltic countries and Central Eastern Europe and will probably start before the end of the year.

Residential demand and housing prices are expected to increase throughout the area of operations of International Construction Services, particularly in Russia, which provides opportunities for improving profitability. Construction costs are expected to increase in all of the countries in which International Construction Services operates in 2011.

INTERIM REPORT JAN 1 - SEPT 30, 2011: TABLES

The information presented in the Interim Report has not been audited.

1. Key figures of YIT Group

Key figures

YIT Group figures by quarter

Segment information by quarter

2. Consolidated financial statements Jan 1 - Sept 30, 2011

Consolidated income statement January 1 - Sept 30, 2011

Statement of comprehensive income January 1 - Sept 30, 2011

Consolidated income statement July 1 - Sept 30, 2011

Consolidated balance sheet

Consolidated statement of changes in equity

Consolidated cash flow statement

3. Notes

Accounting principles of the Interim Report, Foreign Exchange Rates

Financial risk management

Segment information

Unusual items affecting operating profit

Business combinations and disposals

Changes in property, plant and equipment

Inventories

Notes on equity

Borrowings

Change in contingent liabilities and assets and commitments

Transactions with associated companies

1. KEY FIGURES OF YIT GROUP

KEY FIGURES

	9/11	9/10	Change	12/10
Earnings per share, EUR	0.72	0.47	53%	1.12
Diluted earnings per share, EUR	0.72	0.47	53%	1.12
Equity per share, EUR	6.93	6.30	10%	7.04
Average share price during the period, EUR	17.54	15.98	10%	16.35
Share price at the end of period, EUR	11.33	17.39	-35%	18.65
Market capitalization, MEUR	1,419.3	2,175.1	-35%	2,332.7
Weighted average share-issue adjusted number of shares outstanding, thousands	125,160	125,078	0%	125,078
Weighted average share-issue adjusted number of shares outstanding, thousands, diluted	125,160	125,078	0%	125,078
Share-issue adjusted number of shares outstanding at end of period, thousands	125,272	125,078	0%	125,078
Net interest-bearing debt at the end of period, MEUR	755.0	636.6	19%	640.9
Return on investment, from the last 12 months, %	15.5	10.6		14.3
Equity ratio, %	29.2	29.2		31.9
Gearing ratio, %	86.8	80.5		72.6
Gross capital expenditures, MEUR	43.9	99.1	- 56%	129.8
% of revenue	1.4	4.0		3.4
Unrecognised order backlog at the end of period, MEUR	3,738.3	3,727.5	0%	3,535.7
of which order backlog outside Finland	1,969.6	2,122.1	- 7%	1,857.7
Average number of personnel	26,229	23,796	10%	24,317

YIT GROUP FIGURES BY QUARTER

	7-9/11	4-6/11	1-3/11	10-12/10	7-9/10	4-6/10	1-3/10
Revenue, MEUR	1 084.8	1.137.2	969.7	1.338.0	829.6	854.8	765.3
Operating profit, MEUR	35.4	67.9	39.2	116.4	33.9	35.9	33.9
% of revenue	3.3	6.0	4.0	8.7	4.1	4.2	4.4
Financial income, MEUR	0.0	0.3	2.4	0.7	1.1	1.1	0.7
Exchange rate differences, MEUR	0.0	-0.8	-1.3	-0.8	-2.3	-1.9	-2.3
Financial expenses, MEUR	-7.8	-4.4	-5.6	-3.1	-5.7	-7.2	-5.6
Profit before taxes, MEUR	27.6	63.0	34.7	113.2	27.0	27.9	26.7
% of revenue	2.5	5.7	3.6	8.5	3.3	3.3	3.5

Balance sheet total, MEUR	3 418.6	3 387.4	3 274.8	3 117.1	3 234.6	3.067.9	2.994.8

Earnings per share, EUR	0.15	0.37	0.20	0.65	0.16	0.16	0.15
Equity per share, EUR 1)	6.93	7.00	6.64	7.04	6.30	6.35	6.08
Share price at end of period, EUR	11.33	17.24	20.92	18.65	17.39	14.78	17.10
Market capitalization, MEUR	1 419.3	2 159.7	2 616.6	2 332.7	2 175.1	1.848.7	2.138.8

Return on investment, from the last 12 months, %	15.5	15.6	14.0	14.3	10.6	10.7	11.3
Equity ratio, %	29.2	29.7	28.5	31.9	29.2	31.8	30.2
Net interest-bearing debt at the end of period, MEUR	755.0	702.7	626.1	640.9	636.6	514.8	496.0
Gearing ratio, %	86.8	79.9	75.2	72.6	80.5	64.7	65.0

Gross capital expenditures, MEUR	20.6	14.6	8.7	.30.7	81.0	8.7	9.4
Order backlog at the end of period, MEUR	3 738.3	3 796.9	3 699.0	3 535.7	3 727.5	3 329.2	3 152.5
Personnel at the end of period	26 502	26.807	25.748	25.832	25.943	23.877	23.211

SEGMENT INFORMATION BY QUARTER

Revenue by business segment (EUR million)

	7-9/11	4-6/11	1-3/11	10-12/10	7-9/10	4-6/10	1-3/10
Building Services Northern Europe	511.9	509.4	476.2	519.2	416.8	460.8	406.8
Building Services Central Europe	210.8	191.1	177.1	258.7	134.2	86.9	70.4
Construction Services Finland	269.4	332.3	289.5	294.2	279.7	275.2	252.9
International Construction Services	122.5	120.5	100.3	139.7	111.9	112.1	106.9
Other items	-18.1	-16.4	-16.2	-24.2	-18.4	-20.7	-16.2
YIT's segments total	1 096.5	1,136.9	1,026.9	1,187.6	924.2	914.3	820.8
IFRIC 15 adjustments	-11.6	0.3	-57.2	150.4	-94.6	-59.6	-55.5
YIT Group total	1 084.9	1,137.2	969.7	1,338.0	829.6	854.7	765.3

Operating profit by business segment (EUR million)

	7-9/11	4-6/11	1-3/11	10-12/10	7-9/10	4-6/10	1-3/10
Building Services Northern Europe	19.9	18.8	17.1	23.5	20.2	25.1	19.9
Building Services Central Europe	7.9	12.1	4.0	8.9	2.7	3.1	1.7
Construction Services Finland	21.1	32.8	25.6	29.4	29.3	26.4	23.1
International Construction Services	-0.9	12.3	8.4	13.4	9.2	7.6	4.6
Other items	-4.4	-5.7	-4.7	-5.5	-3.4	-5.1	-4.8
YIT's segments total	43.6	70.3	50.4	69.7	57.9	57.1	44.5
IFRIC 15 adjustments	-8.2	-2.4	-11.2	46.7	-24.0	-21.2	-10.6
YIT Group total	35.4	67.9	39.2	116.4	33.9	35.9	33.9

Operating profit margin by business segment (%)

	7-9/11	4-6/11	1-3/11	10-12/10	7-9/10	4-6/10	1-3/10
Building Services Northern Europe	3.9	3.7	3.6	4.5	4.8	5.4	4.9
Building Services Central Europe	3.7	6.3	2.3	3.4	2.0	3.6	2.4
Construction Services Finland	7.8	9.9	8.8	10.0	10.5	9.6	9.1
International Construction Services	-0.7	10.2	8.4	9.6	8.2	6.8	4.3
YIT's segments total	4.0	6.2	4.9	5.9	6.3	6.2	5.4
YIT Group total	3.3	6.0	4.0	8.7	4.1	4.2	4.4

International Construction Services segment’s operating profit is weakened by a provision of EUR 10 million related to the rectifying of the ammonia problem booked in the third quarter of 2011. In the second quarter 2011, a EUR 3.0 million provision booked affects negatively Building Services Northern Europe’s operating profit and a EUR 5.0 million gain on the sale of Hungarian businesses affects positively Building Services Central Europe’s operating profit.

In 2010, the operating profit of Building Systems segment included EUR 6.3 million non- recurring expenses related to acquisitions made during the year. Of the non-recurring items, EUR 1.4 million was recognised in the third quarter of the year in Building Services Northern Europe and EUR 1.9 million in Building Services Central Europe. EUR 3.0 million of non-recurring expenses were booked in Building Services Central Europe in the fourth quarter.

Order backlog by business segment at end of period (EUR million)

	9/11	6/11	3/11	12/10	9/10	6/10	3/10
Building Services Northern Europe	886.1	879.5	804.9	757.4	743.0	748.5	697.9
Building Services Central Europe	523.9	554.1	573.2	507.0	589.1	276.8	266.3
Construction Services Finland	1,289.3	1,239.5	1,176.0	1,173.2	1,205.2	1,154.7	905.4
International Construction Services 1)	850.1	896.4	862.7	870.8	884.8	946.8	1,013.2
Other items	-60.3	-60.2	-61.2	-58.3	-55.2	-59.4	-45.8
YIT's segments total	3,489.0	3,509.4	3,355.6	3,250.1	3,366.9	3,067.4	2,837.0
IFRIC 15 adjustments	249.3	287.5	343.4	285.6	360.6	261.8	315.5
YIT Group total	3,738.3	3,796.9	3,699.0	3,535.7	3,727.5	3,329.2	3,152.5

1) At the end of September 2011, the value of projects that were still suspended amounted to EUR 83 million (9/10: EUR 161 million)

2. CONSOLIDATED FINANCIAL STATEMENTS JAN 1 - SEPT 30, 2011

CONSOLIDATED INCOME STATEMENT JAN 1 - SEPT 30, 2011 (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Revenue	3,191.8	2,449.6	30%	3,787.6
of which activities outside Finland	1,873.3	1,381.4	36%	2,343.6
Other operating income and expenses	-3,019.7	-2,319.5	30%	-3,531.1
Share of results of associated companies	-0.1	-0.3	-67%	-0.5
Depreciation and write-downs	-29.5	-26.1	13%	-35.9
Operating profit	142.5	103.7	37%	220.1
% of revenue	4.5	4.2		5.8
Financial income	2.7	2.9	-7%	3.7
Exchange rate differences	-2.1	-6.5	-68%	-7.3
Financial expenses	-17.8	-18.5	-4%	-21.7
Profit before taxes	125.3	81.6	54%	194.8
% of revenue	3.9	3.3		5.1
Income taxes 1)	-35.3	-23.6	50%	-54.2
Profit for the report period	90.0	58.0	55%	140.6
% of revenue	2.8	2.4		3.7

Attributable to
Equity holders of the parent company	89.6	58.8	52%	140.3
Minority interests	0.4	-0.8		0.3

Earnings per share attributable to the equity holders of the parent company
Earnings per share, EUR	0.72	0.47	53%	1.12
Diluted earnings per share, EUR	0.72	0.47	53%	1.12

1) Taxes for the review period are based on the taxes for the whole financial year.

STATEMENT OF COMPREHENSIVE INCOME JAN 1 - SEPT 30, 2011 (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Profit for the report period	90.0	58.0	55%	140.6
Other comprehensive income
- Change in the fair value of interest derivatives	-1.2	-2.3	-48%	-1.0
-- Deferred tax	0.3	0.6	-50%	0.3
- Change in translation differences	-25.3	21.3		29.2
- Other change	-0.2	0.0		0.0
Other comprehensive income. total	-26.4	19.6		28.5
Total comprehensive income	63.6	77.6	-18%	169.1

Attributable to
Equity holders of the parent company	62.9	78.1	-19%	168.7
Minority interests	0.7	-0.5		0.4

CONSOLIDATED INCOME STATEMENT JUL 1 - SEPT 30, 2011 (EUR million)

	7-9/11	7-9/10	Change
Revenue	1,084.8	829.6	31%
of which activities outside Finland	653.6	473.4	38%
Other operating income and expenses	-1,039.3	-786.7	32%
Share of results of associated companies	0.0	0.1
Depreciation and write-downs	-10.1	-9.1	11%
Operating profit	35.4	33.9	4%
% of revenue	3.3	4.1
Financial income	0.0	1.1
Exchange rate differences	0.0	-2.3
Financial expenses	-7.8	-5.7	37%
Profit before taxes	27.6	27.0	2%
% of revenue	2.5	3.3
Income taxes 1)	-8.7	-8.3	5%
Profit for the report period	18.9	18.7	1%
% of revenue	1.7	2.3

Attributable to
Equity holders of the parent company	18.6	19.8	-6%
Minority interests	0.3	-1.1

Earnings per share attributable to the equity holders of the parent company
Earnings per share, EUR	0.15	0.16	- 6%
Diluted earnings per share, EUR	0.15	0.16	- 6%

CONSOLIDATED BALANCE SHEET (EUR million)

	9/11	9/10	Change	12/10
ASSETS

Non-current assets
Property, plant and equipment	109.7	104.0	5%	106.7
Goodwill	347.5	351.0	-1%	350.9
Other intangible assets	53.8	43.9	23%	50.5
Shares in associated companies	2.6	2.9	-10%	2.7
Other investments	3.4	2.0	70%	3.4
Other receivables	15.4	15.7	-2%	15.9
Deferred tax assets	55.8	59.4	-6%	44.7

Current assets
Inventories	1,571.6	1,566.6	0%	1,484.9
Trade and other receivables	1,034.7	897.0	15%	889.3
Cash and cash equivalents	224.1	173.9	29%	148.3
Assets held for sale	0.0	18.2		19.8
Total assets	3,418.6	3,234.6	6%	3,117.1

EQUITY AND LIABILITIES

Equity attributable to equity holders of the parent company
Share capital	149.2	149.2		149.2
Other equity	718.9	638.6	13%	730.8

Non-controlling interest	2.2	3.2	-31%	2.9

Total equity	870.3	791.0	10%	882.9

Non-current liabilities
Deferred tax liabilities	88.3	86.3	2%	77.2
Pension liabilities	26.6	28.8	-8%	26.9
Provisions	53.9	49.3	9%	49.5
Borrowings	536.4	524.2	2%	504.6
Other liabilities	22.2	9.1	144%	10.3

Current liabilities
Advances received	434.3	528.4	-18%	349.3
Trade and other payables	895.2	866.8	3%	869.5
Provisions	48.7	48.8		45.1
Current borrowings	442.7	286.3	55%	284.6
Liabilities of assets held for sale	0.0	15.6		17.2

Total equity and liabilities	3,418.6	3,234.6	6%	3,117.1

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR million)

	Attributable to equity holders of the parent company
	Share capital	Legal reserve	Other reserve	Cumulative translation differences	Fair value reserve	Treasury shares	Retained earnings	Total	Non-controlling interest	Total equity
Equity on January 1. 2011	149.2	2.0	0.0	-14.2	-2.4	-10.6	756.1	880.1	2.8	882.9
Comprehensive income
Profit for the period							89.6	89.6	0.4	90.0
Other comprehensive income:
Change in the fair value of interest derivatives					-1.2			-1.2		-1.2
- Deferred tax asset					0.3			0.3		0.3
Change in translation differences				-24.8			-0.8	-25.6	0.3	-25.3
Other change		-0.2					0.0	-0.2	0.0	-0.2
Comprehensive income, total	0.0	-0.2	0.0	-24.8	-0.9	0.0	88.8	62.9	0.7	63.6
Transactions with owners
Dividend paid							-81.3	-81.3	-0.2	-81.5
Share-based incentive scheme
Transfer from retained earnings		0.2	0.0				0.0	0.2		0.2
Share-based incentive scheme			2.9			0.9	1.3	5.1		5.1
Transactions with owners, total	0.0	0.0	2.9	0.0	0.0	0.9	-80.0	-76.0	-0.2	-76.2
Changes in ownership shares in subsidiaries
Changes in group ownership shares in subsidiaries - no loss of control							1.1	1.1	-1.1	0.0
Changes in ownership shares in subsidiaries, total	0.0	0.0	0.0	0.0	0.0	0.0	1.1	1.1	-1.1	0.0
Equity on September 30, 2011	149.2	2.0	2.9	-39.0	-3.3	-9.7	766.0	868.1	2.2	870.3

	Attributable to equity holders of the parent company
	Share capital	Legal reserve	Other reserve	Cumulative translation differences	Fair value reserve	Treasury shares	Retained earnings	Total	Non-controlling interest	Total equity
Equity on January 1. 2010	149.2	1.7	11.6	-42.4	-1.7	-10.6	654.1	761.9	2.2	764.1
Comprehensive income
Profit for the period							58.8	58.8	-0.8	58.0
Other comprehensive income:
Change in the fair value of interest derivatives					-2.3			-2.3		-2.3
- Deferred tax asset					0.6			0.6		0.6
Change in translation differences				20.0			1.0	21.0	0.3	21.3
Other change							-2.3	-2.3	2.3	0.0
Comprehensive income, total				20.0	-1.7		57.5	75.8	1.8	77.6
Transactions with owners

Dividend paid							-50.5	-50.5	-0.8	-51.3
Transfer from retained earnings		0.3					-0.3	0.0		0.0
Share-based incentive scheme							0.6	0.6		0.6
Transactions with owners, total		0.3					-50.2	-49.9	-0.8	-50.7
Equity on September 30, 2010	149.2	2.0	11.6	-22.4	-3.4	-10.6	661.4	787.8	3.2	791.0

CONSOLIDATED CASH FLOW STATEMENT (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Cash flows from operating activities
Net profit for the period	90.0	58.0	55%	140.6
Reversal of accrual-based items	91.6	87.3	5%	130.3
Change in working capital
Change in trade and other receivables	-130.1	-73.7	76%	-77.3
Change in inventories	-117.3	-50.7	131%	60.3
Change in current liabilities	133.8	71.8	86%	-135.4
Change in working capital, total	-113.6	-52.6	116%	-152.4
Interest paid	-26.7	-21.3	25%	-27.5
Other financial items, net	0.4	-41.5		-37.2
Interest received	2.8	2.7	4%	3.5
Taxes paid	-49.7	-42.5	17%	-50.5
Net cash generated from operating activities	-5.0	-9.9	-49%	6.8

Cash flows from investing activities
Acquisition of subsidiaries, net of cash	-8.9	-31.8	-72%	-45.4
Purchase of property, plant and equipment	-25.3	-12.4	104%	-19.9
Purchase of intangible assets	-6.0	-5.6	7%	-8.4
Increases in other investments	0.0	0.0		-1.3
Proceeds from sale of subsidiaries, net of cash	5.9
Proceeds from sale of tangible and intangible assets	5.5	3.6	44%	6.5
Proceeds from sale of other investments	2.6	0.0		0.0
Net cash used in investing activities	-26.2	-46.2	-43%	-68.5

Operating cash flow after investments	-31.4	-56.1	-44%	-61.7

Cash flow from financing activities
Change in current liabilities	159.0	35.5		34.2
Proceeds from borrowings	175.0	100.0	75%	100.0
Repayments of borrowings	-141.9	-32.9		-50.4
Payments of financial leasing debts	-1.4	1.1		-0.1
Dividends paid and other distribution of assets	-81.5	-51.3	59%	-51.2
Net cash used in financing activities	109.2	52.3		32.5

Net change in cash and cash equivalents	77.8	-3.8		-29.3
Cash and cash equivalents at the beginning of the period	147.6	173.1		173.1
Change in the fair value of the cash equivalents	-1.3	3.0		3.8
Cash and cash equivalents at the end of the period	224.1	172.3	30%	147.6

3. NOTES

ACCOUNTING PRINCIPLES OF THE INTERIM REPORT

YIT Corporation’s Interim Report for January 1 - September 30, 2011 has been drawn up in line with IAS 34: Interim Financial Reporting. The information presented in the Interim Report has not been audited. YIT has applied the same accounting policy and IFRS standards and interpretations in the drafting of the Interim Report as in its annual financial statements for 2010. However, the following new standards, interpretations and amendments on current standards that have been approved by EU have been applied as of January 1. 2011:

IAS 24 (revised): Related party disclosures
IFRIC 14 (amendment): Prepayments of a minimum funding requirement
IFRIC 19: Extinguishing financial liabilities with Equity instruments
IAS 32 (amendment): Classification of Rights Issues
Improvements to IFRSs, issued in July 2010

Currency exchange rates used in the Interim Report

		Average rate 1-9/11	Balance sheet rate Sept 30, 2011	Average rate 1-9/10	Balance sheet rate Sept 30, 2010
1 EUR =	CZK	24.3610	24.7540	25.4620	24.6000
	DKK	7.4543	7.4417	7.4445	7.4519
	EEK	15.6466	15.6466	15.6466	15.6466
	HUF	271.2800	292.5500	275.2700	275.7500
	MYR	4.2591	4.3112	4.0570	4.2101
	NOK	7.8041	7.8880	7.9900	7.9680
	PLN	4.0183	4.4050	4.0048	3.9847
	RUB	40.4800	43.3500	39.7807	41.6923
	SEK	9.0084	9.2580	9.6555	9.1421
	SGD	1.7539	1.7589	1.7439	1.7942
	USD	1.4066	1.3503	1.3067	1.3648
	LTL	3.4528	3.4528	3.4528	3.4528
	LVL	0.7028	0.7028	0.7028	0.7028

FINANCIAL RISK MANAGEMENT

Financial risks include liquidity, interest rate, currency and credit risk, and their management is a part of the Group's financing policy. The Board of Directors has approved the Corporate Finance Policy. The Group’s Finance Department is responsible for the practical implementation of the policy in association with the business segments and units.

The Group's strategic financial targets guide the use and management of the Group's capital. Achieving the strategic targets is supported by maintaining an optimum Group capital structure. Capital structure is mainly influenced by controlling the investments and the amount of working capital tied to business operations.

A more detailed account of financial risks has been published in the notes to the financial statements for 2010.

SEGMENT INFORMATION

The chief operating decision-maker has been identified as the YIT Group’s Management Board, which review the Group’s internal reporting in order to assess performance and allocate resources to the segments.

Building Services Northern Europe and Building Services Central Europe segments’ reporting to YIT Group’s management board is based on YIT Group’s accounting principles. Construction Sevices Finland and International Construction Services segments’ reporting to the Management board do not apply Group’s accounting principles in revenue recognition of own residential and commercial real estate development projects. The revenue from own residential and commercial development projects is recognised on the basis of the percentage of degree of completion and the degree of sale, using percentage of completion method. According to Group’s accounting principles revenue from own residential and commercial development projects is recognised at the completion. In the case of YIT’s commercial real estate development projects, the recognition practice will be evaluated on a case-by-case basis and in accordance with the terms and conditions of each contract. Sold projects are recognised either when the construction work has started or when the project is complete. The share of income and expenses to be recognised is calculated by multiplying the percentage of completion by the percentage of sale multiplied by the occupancy rate. YIT usually sells commercial real estate development projects to investors either prior to construction or during an early phase.The impact on revenue and operating profit of two revenue recognition principles is shown in the line IFRIC 15 - adjustment. As a result of the accounting policy, Group figures can fluctuate greatly between quarters

Revenue by business segment (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Building Services Northern Europe	1,497.5	1,284.4	17%	1,803.6
- Group internal	-46.3	-49.7	-7%	-71.0
- external	1,451.2	1,234.7	18%	1,732.6
Building Services Central Europe	579.0	291.5	99%	550.2
- Group internal	-0.2	-0.3	-33%	-0.5
- external	578.8	291.2	99%	549.6
Construction Services Finland	891.2	807.8	10%	1,102.0
- Group internal	-1.1	-1.3	-15%	-1.9
- external	890.1	806.5	10%	1,100.1
International Construction Services	343.3	330.9	4%	470.6
- Group internal	-4.3	-4.7	-9%	-7.1
- external	339.0	326.2	4%	463.5
Other items	1.1	0.8	38%	1.2
YIT's segments total	3,260.3	2,659.4	23%	3,847.0
IFRIC 15 adjustments	-68.5	-209.8	-67%	-59.4
YIT Group total - external	3,191.8	2,449.6	30%	3,787.6

Operating profit by business segment (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Building Services Northern Europe 1)	55.8	65.2	-14%	88.7
Building Services Central Europe 2)	24.0	7.5	220%	16.4
Construction Services Finland	79.5	78.7	1%	108.1
International Construction Services	19.8	21.3	-7%	34.7
Other items	-14.8	-13.3		-18.8
YIT's segments total	164.3	159.4	3%	229.1
IFRIC 15 adjustments	-21.8	-55.7		-9.0
YIT Group total	142.5	103.7	37%	220.1

In 2010, the operating profit of Building Systems segment included EUR 6.3 million non- recurring expenses related to acquisitions made during the year. Of the non-recurring items, EUR 1.4 million was recognised in the third quarter of the year in Building Services Northern Europe and EUR 1.9 million in Building Services Central Europe. EUR 3.0 milliom of non-recurring expenses were booked in Building Services Central Europe in the fourth quarter.

Order backlog by business segment at end of period (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Building Services Northern Europe	886.1	743.0	19%	757.4
Building Services Central Europe	523.9	589.1	-11%	507.0
Construction Services Finland	1,289.3	1,205.2	7%	1,173.2
International Construction Services 1)	850.1	884.8	-4%	870.8
Other items	-60.3	-55.2		-58.3
YIT's segments total	3,489.0	3,366.9	4%	3,250.1
IFRIC 15 adjustments	249.3	360.6		285.6
YIT Group total	3,738.3	3,727.5	0%	3,535.7

1) At the end of September 2011, the value of projects that were still suspended amounted to EUR 83 million (9/10: EUR 161 million)

UNUSUAL ITEMS AFFECTING OPERATING PROFIT (EUR million)

	1-9/11	1-9/10	1-12/10
Building Services Northern Europe	-3.0	-1.4	-1.4
Building Services Central Europe	5.0	-1.9	-4.9
International Construction Services	-10.0
YIT Group total	-8.0	-3.3	-6.3

International Construction Services segment’s operating profit is weakened by a provision of EUR 10 million related to the rectifying of the ammonia problem booked in the third quarter of 2011.. In the second quarter 2011, a EUR 3.0 million provision booked affects negatively Building Services Northern Europe’s operating profit and a EUR 5.0 million gain on the sale of Hungarian businesses affects positively Building Services Central Europe’s operating profit.

In 2010, the operating profit of Building Systems segment included EUR 6.3 million non-recurring expenses related to acquisitions made during the year. Of the non-recurring items, EUR 1.4 million was recognised in the third quarter of the year in Building Services Northern Europe and EUR 1.9 million in Building Services Central Europe. EUR 3.0 milliom of non-recurring expenses were booked in Building Services Central Europe in the fourth quarter.

BUSINESS COMBINATIONS AND DISPOSALS (EUR million)

Building Services Nothern Europe - segment acquired during the review period in Sweden NNE Pharmaplan AB in January, Orab I Sydost AB specialising in industrial pipe works in April and Johnson Control’s Commercial Refridgeration - businesses, Frisk Ventilation AB a supplier of ventilation - related services in May, MISAB Sprinkler & VVS AB and Sakari Timonen business operations in Julyand Mercur VVS group in September. Total acquisition price amounted to EUR 10.4 million. With these local acquisitions YIT strengthen the market share and the acquisition price over the net assets acquired will be allocated to customer base.

Composition of acquired net assets and goodwill (EUR million)

	1-9/11
Consideration
Cash	9.5
Contingent consideration	0.9
Total consideration	10.4

Acquisition -related costs ( recognised as expenses)	0.2

Recognised amounts of identifiable assets acquired and liabilities assumed
	9/11
Cash and cash equivalents	0.5
Property, plant and equipment	0.8
Intangible rights	9.6
Inventories	0.3
Trade and other receivables	9.9
Current liabilities	-10.7
Total identifiable net assets	10.4
Non-controlling interest	0.0
Goodwill	0.0
Total entity value	10.4

Building Services Central Europe - segment disposed it’s businesses in Hungary by selling three subsidiaries in Hungary at May 31, 2011. The companies were included in the acquisitions in years 2008 and 2010 in Central Europe. The goodwill related to Central Europe were reduced by EUR 1,4 million in Hungarian business divestment.

Disposals (milj. e)

Effect on revenue and net profit:	1-9/11
Revenue	4.7
Operating expenses	-4.1
Profit before taxes	0.6
Taxes	-0.1
Net profit	0.5

Effect on balance sheet assets and liabilities:	9/11
Property, plant and equipment	0.1
Goodwill	1.4
Inventories	0.2
Trade receivables	3.4
Cash and cash equivalents	5.7
Trade and other liabilities	-4.2
Interest bearing liabilities	0.0
Net assets	6.6

Effect on cash flow:	9/11
Received in cash	12.2
Direct costs related to disposals	-0.6
Cash and cash equivalents in disposed entity	-5.7
Cash flow on disposals	5.9

CHANGES IN PROPERTY, PLANT AND EQUIPMENT (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Carrying value at the beginning of period	106.7	99.8	7%	99.8
Increase	25.6	12.3	92%	24.4
Increase through acquisitions	0.8	10.3	- 92%	12.4
Decrease	-4.9	-3.1	55%	-6.1
Decrease through disposals	-0.1
Depreciation and value adjustments	-17.9	-17.5	2%	-23.9
Other changes	-0.5	2.2		0.1
Carrying value at the end of period	109.7	104.0	5%	106.7

INVENTORIES (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Raw materials and consumables	27.5	25.2	9%	26.4
Work in progress	725.6	794.4	-9%	639.0
Land areas and plot owing companies	634.6	566.0	12%	589.3
Shares in completed housing and real estate companies	142.6	134.9	6%	181.2
Advance payments	40.5	45.1	-10%	48.2
Other inventories	0.8	1.0	-10%	0.9
Total inventories	1,571.6	1,566.6	0%	1,484.9

NOTES ON EQUITY (EUR million)

Share capital and share premium reserve	Number of shares	Share capital (EUR million)	Treasury shares (EUR million)
Shares outstanding on January 1, 2011	125,078,422	149.2	-10.6
Transfer of treasury shares 27.5.2011	196,910		0.9
Return of treasury shares 30.6.2011	-1,524		0.0
Return of treasury shares 30.9.2011	-1,778
Shares outstanding on September 30, 2011	125,272,030	149.2	-9.7

BORROWINGS (EUR million)

		Fair value	Carrying value	Nominal value
Bonds in financial statements December 31, 2010		285.4	292.6	292.9

Valuation of the above bonds on September 30, 2011		228.4	235.5	235.7

Bonds raised during the review period:
Fixed-rate bonds
1/2011 -2016, interest rate 4,75 % 1)	EUR	98.5	99.6	100.0
Total bonds on September 30, 2011		326.9	335.1	335.7

Terms of the bonds raised during the revenue period in brief:

1) Loan period June 20, 2011 - June 20, 2016, interest payments in arrear at June 20. The bond is unsecured. ISIN code FI4000026653.

CHANGE IN CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS (EUR million)

	9/11	9/10	Change	12/10
Collateral given for own commitments
- Corporate mortgages	29.3	29,3	0%	29.8
- Other mortgages	0.0	0,0		0.6
Other commitments
- Repurchase commitments	232.9	142,9	63%	141.0
- Operating leases	314.6	327,4	-4%	322.5
- Rental guarantees for clients	3.3	10,3	-68%	8.0
- Other contingent liabilities	3.2	4,3	-26%	4.2
- Other guarantees	5.2	5,2	0%	5.2
Liability under derivative contracts
- Value of underlying instruments
-- Interest rate derivatives	332.2	304,7	9%	304.6
-- Currency derivatives	205.6	247,0	-17%	203.2
-- Commodity derivatives	0.0	0,5	-100%	0.5
- Market value
-- Interest rate derivatives	-10.6	-10,6	0%	-10.6
-- Currency derivatives	6.8	9,2	-26%	0.3
-- Commodity derivatives	0.0	0,0		0.1
YIT Corporation’s guarantees on behalf of its subsidiaries	1,270.4	1,191,2	7%	1,202.5

TRANSACTIONS WITH ASSOCIATED COMPANIES (EUR million)

	1-9/11	1-9/10	Change	1-12/10
Sales to associated companies	1.1	1.2	-8%	1.5
Purchases from associated companies	0.1	0.2	-50%	0.2
Trade and other receivables	0.0	0.0		0.0
Trade and other liabilities	0.0	0.1		0.0

Documents

YIT Corporation’s financial reporting and Annual General Meeting in 2025

YIT’s Interim Report January-September 2024

Composition of YIT Corporation’s Shareholders’ Nomination Board

Announcement of a change in shareholding according to Chapter 9, Section 10 of the Finnish Securities Market Act

YIT'S INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2011: RECORD HIGH RESIDENTIAL SALES IN RUSSIA, THE GROUP'S STRONG ORDER BACKLOG RAISES VISIBILITY

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