YIT's President and CEO at Capital Markets Day: Aiming for more focused, balanced and profitable growth

YIT CORPORATION          STOCK EXCHANGE RELEASE          SEPTEMBER 25, 2012 AT 8:30 A.M.

YIT’S PRESIDENT AND CEO AT CAPITAL MARKETS DAY: AIMING FOR MORE FOCUSED, BALANCED AND PROFITABLE GROWTH

YIT is arranging a Capital Markets Day for investors and analysts today, September 25, 2012, on the Group’s strategy. The company will also comment on recent business development.

The main goal of the strategy is more focused, balanced and profitable growth. The Group’s strategic long-term targets remain unchanged:

• Average annual revenue growth of more than 10 per cent
• Return on investment of 20 percent
• Operating cash flow after investments sufficient for dividend payout and reduction of debt
• Equity ratio of 35 percent
• Dividend payout ratio of 40–60 percent of net profit for the period.

The target levels are based on figures reported on the basis of the percentage of completion in accordance with the current emphasis. When determining the target levels, the assumption was made that economic growth in YIT’s market areas will continue.

Juhani Pitkäkoski, President and CEO: Good residential sales have continued in the third quarter

“In business operations, YIT continues to focus on growth in residential construction as well as building systems service and maintenance. Residential sales have remained at a good level in the third quarter: we estimate that YIT will sell more than 400 apartments to consumers in Finland during the third quarter while International Construction Services is estimated to sell about 1,100 apartments. During the third quarter, we have responded to the demand by continuing the start-ups of our own residential development projects in particular. We estimate that, in the third quarter, we will start the construction of more than 500 apartments to be sold directly to consumers in Finland. In International Construction Services, the estimate is more than 1,300 apartments. In addition, we have launched the construction of about 250 rental apartments in five locations, contributing to the availability of rental housing in Finland.

“In business premises construction in Construction Services Finland, our order backlog is at a healthy level due to our own development projects started earlier. In infrastructure construction, our order backlog has developed favourably and major road projects have progressed as planned.”

Costs caused by the ammonia problem considerably lower than estimated

“In the autumn of 2011, excessive levels of ammonia were found in residential units built by YIT in St Petersburg. To cover the cost of repair, we made a cost provision of EUR 10 million in the third quarter of 2011. To date, the cost of repair amounts to about EUR 1.5 million, which is considerably less than we estimated a year ago. More accurate information on the scope of the problem as well as the actual damage and costs has enabled us to continue negotiations with our insurance company and suppliers on their share of the costs.”

Profitability improvement top priority in Building Services Northern Europe

“In Building Services Northern Europe, the market situation is challenging and we will focus on improving the segment’s profitability. The segment has continued its efficiency programme, which aims for annual savings of EUR 40 million from the beginning of 2013. The uncertainty of the global economy has caused our customers to delay investment decisions in the German building services market and we launched measures to adjust our operations to the decreased market demand already in the second quarter in Building Services Central Europe.”

YIT reiterates its guidance for 2012

YIT Corporation reiterates its estimate issued in connection with the financial statements for 2011 and according to which, in 2012, revenue will remain at the level of 2011 and operating profit will increase compared to 2011. The profit outlook is based on the segment-level reporting, i.e. recognition of income based on the percentage of completion.

Capital Markets Day

The Capital Markets Day will begin today, September 25, 2012, at 8.00 a.m. local time (CEST), which is 9.00 a.m. Finnish time (EEST). At that time, the presentation by President and CEO’s can be followed as a live webcast www.yitgroup.com/webcast. During the presentation, investors and analysts may participate in the event via a conference call by dialling +44 (0)20 7162 0077.

More information on YIT’s strategy and Capital Markets Day is available at www.yitgroup.com/investors.

For additional information, please contact: 

Hanna-Maria Heikkinen, Vice President, Investor Relations, YIT Corporation, tel. +358 40 8262 172, hanna-maria.heikkinen@yit.fi

YIT CORPORATION

Hanna-Maria Heikkinen
Vice President, Investor Relations

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

YIT celebrates its 100th anniversary in 2012. The company was established in the Grand Duchy of Finland in 1912. Today, YIT is a leading European service company in building systems, construction services and services for industry. Our 26,000 professionals serve customers in 14 countries in the Nordic and Baltic countries, Russia and Central Europe. We have grown together with our customers and developed our services in line with the changes taking place in different societies. We intend to continue on that track. Our vision is to lead the way in creating and maintaining good living environments. In 2011, YIT’s revenue was approximately EUR 4.4 billion. YIT’s shares are listed on NASDAQ OMX Helsinki. www.yitgroup.com