Published:

2013-07-26 07:00:01 CEST

Registered:

2013-07-26 07:00:09 CEST

REGULATED INFORMATION

English

Finnish

YIT - Interim report (Q1 and Q3)

YIT'S INTERIM REPORT JANUARY 1 – JUNE 30, 2013: Favourable residential sales in Russia – partial demerger successfully finalised

Helsinki, Finland, 2013-07-26 07:00 CEST (GLOBE NEWSWIRE) --

YIT CORPORATION INTERIM
REPORT July 26, 2013
at 8:00 a.m.

YIT'S INTERIM REPORT JANUARY 1 - JUNE 30, 2013: Favourable residential sales in
Russia - partial demerger successfully finalised

April 1 - June 30, 2013: Profitability of International Construction Services
improved

-- YIT's Extraordinary General Meeting decided on June 17, 2013, to approve
the partial demerger of YIT Corporation in accordance with the demerger
plan signed by the company's Board of Directors on February 21, 2013. In
accordance with the demerger plan, YIT demerged so that the assets and
liabilities relating to YIT's Building Services business were transferred
to Caverion Corporation, a new company established in the demerger.
-- Caverion shares were admitted for public trading on NASDAQ OMX Helsinki Ltd
on July 1, 2013. The Building Services business is presented as
discontinued operations in this interim report. In addition to Caverion's
net result, the costs relating to the demerger and the difference between
the book value and fair value of net assets transferred to Caverion are
reported under discontinued operations.
-- Caverion will publish more detailed information on its financial
development in a separate stock exchange release, approximately on July 26,
2013.
-- This interim report reports the financial development of YIT's Construction
Services, i.e. the continuing operations.
-- The operating profit of YIT's continuing operations decreased by 12 percent
compared to the previous year, amounting to EUR 38.3 million in April-June
(4-6/2012: EUR 43.4 million). Operating profit increased clearly in
International Construction Services compared to the previous year, and the
segment's profitability improved. O
perating profit of business premises operations decreased significantly in
Construction Services Finland.
-- The revenue of the continuing operations for the second quarter decreased
by 12 percent compared to the previous year, amounting to EUR 430.9 million
(4-6/2012: EUR 488.9 million). Revenue grew in International Construction
Services where revenue growth was supported by the high volume of
residential production and favourable residential sales in Russia.
-- The order backlog of the continuing operations based on segment reporting
increased by 5 percent compared to the previous year, amounting to EUR
2,810.8 million (6/2012: EUR 2,686.6 million). The order backlog was at the
same level as at the end of March 2013.
-- The continuing operations' profit before taxes based on segment reporting
was 17 percent lower than the year before in April-June, amounting to EUR
29.8 million (4-6/2012: EUR 35.7 million).
-- The continuing operations' earnings per share based on segment reporting
decreased by 22 percent in April-June from the year before, amounting to
EUR 0.18 (4-6/2012: EUR 0.23).

January 1 - June 30, 2013: Operating profit increased clearly in International
Construction Services

-- The operating profit for of the continuing operations was EUR 74.2 million
(1-6/2012: EUR 80.5 million). Operating profit increased clearly in
International Construction Services.

-- The revenue of the continuing operations was 5 percent lower in
January-June than in the previous year, decreasing to EUR 882.9 million
(1-6/2012: EUR 933.3 million). Revenue increased in International
Construction Services.
-- The continuing operations' profit before taxes based on segment reporting
decreased by 8 percent compared to the previous year, amounting to EUR 60.4
million (1-6/2012: EUR 65.9 million).
-- The continuing operations' earnings per share based on segment reporting
decreased by 10 percent from the year before, amounting to EUR 0.37
(1-6/2012: EUR 0.41).

GUIDANCE: YIT estimates the revenue and operating profit of the Group's
continuing operations based on segment reporting for 2013 to remain at the
level of 2012, excluding non-recurring items.

YIT Corporation reiterates its estimate issued on June 4, 2013, according to
which the Group revenue and operating profit based on segment reporting for
2013 will remain at the level of 2012 excluding non-recurring items.

Increased uncertainty about general macroeconomic development is impacting
YIT's business operations and customers.

Kari Kauniskangas, President and CEO: Focus on implementing the new strategy
after the demerger

The business operations of International Construction Services developed
favourably during the second quarter: operating profit grew clearly and
profitability improved. In Russia, YIT's residential sales were at a favourable
level, but the demand for our housing varied significantly by city. Our
residential sales in the Baltic countries and Central Eastern Europe have
improved clearly. In Finland, we were active in housing investor deals and our
order backlog strengthened. During the second quarter of the year, we started
construction of more than 2,000 residential units in the Group.

The demerger process was completed at a record pace, and I wish to thank our
professional personnel for a job well done. Now we can focus on implementing
our strategy which was ratified at the beginning of June. In the future,
consumer sales will account for approximately two-thirds of the Group's sales,
and YIT aims at strengthening its brand. We aim to improve our quality and
customer service further and continuously offer consumers new and innovative
housing solutions.

KEY FIGURES

Development of the Group based on segment reporting for continuing operations
(percentage of completion, POC)

Revenue, EUR million 1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
--------------------------------------------------------------------------------
Construction Services Finland 605.2 677.4 -11% 279.2 347.9 -20%
--------------------------------------------------------------------------------
International Construction 264.7 241.3 10% 145.7 133.4 9%
Services
--------------------------------------------------------------------------------
Other items 13.0 14.6 6.0 7.6
--------------------------------------------------------------------------------
Group, total 882.9 933.3 -5% 430.9 488.9 -12%
--------------------------------------------------------------------------------

Operating profit, EUR million 1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
--------------------------------------------------------------------------------
Construction Services Finland 49.4 64.9 -24% 22.9 33.5 -32%
--------------------------------------------------------------------------------
International Construction 29.2 23.8 23% 17.6 14.1 25%
Services
--------------------------------------------------------------------------------
Other items -4.4 -8.1 -2.2 -4.2
--------------------------------------------------------------------------------
Group, total 74.2 80.5 -8% 38.3 43.4 -12%
--------------------------------------------------------------------------------

Operating profit margin, % 1-6/13 1-6/12 4-6/13 4-6/12
-------------------------------------------------------------------
Construction Services Finland 8.2 9.6 8.2 9.6
-------------------------------------------------------------------
International Construction Services 11.0 9.9 12.1 10.6
-------------------------------------------------------------------
Group, total 8.4 8.6 8.9 8.9
-------------------------------------------------------------------

Order backlog, EUR million 6/13 6/12 Change 6/13 3/13 Change
--------------------------------------------------------------------------------
Construction Services 1,584.0 1,499.9 6% 1,584.0 1,424.9 11%
Finland
--------------------------------------------------------------------------------
International Construction 1,226.8 1,186.7 3% 1,226.8 1,285.3 -5%
Services
--------------------------------------------------------------------------------
Group, total 2,810.8 2,686.6 5% 2,810.8 2,710.2 4%
--------------------------------------------------------------------------------

Key ratios for the continuing operations based on segment reporting (percentage
of completion, POC)

1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
--------------------------------------------------------------------------------
Profit before taxes, EUR million 60.4 65.9 -8% 29.8 35.7 -17%
--------------------------------------------------------------------------------
Profit for the review period, 46.4 51.8 -10% 23.0 28.9 -20%
EUR million 1)
--------------------------------------------------------------------------------
Earnings/share, EUR 0.37 0.41 -10% 0.18 0.23 -22%
--------------------------------------------------------------------------------
Operating cash flow after -82.2 46.9 -76.9 61.0
investments, EUR million
--------------------------------------------------------------------------------
Personnel at the end of period 6,904 7,001 -1% 6 904 7,001 -1%
--------------------------------------------------------------------------------

1) attributable to equity holders of the parent company

Discontinued operations (percentage of completion, POC)

The Building Services business is presented as discontinued operations in this
interim report. In addition to Caverion's net result, the costs relating to the
demerger and the difference between the book value and fair value of net assets
transferred to Caverion are reported under discontinued operations.

1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
--------------------------------------------------------------------------------
Profit for the review period, 288.4 22.6 more 286.2 11.7 more
EUR million 1), (discontinued than a than a
operations) thousan thousan
d d
--------------------------------------------------------------------------------
Profit for the review period, 334.8 74.4 350% 309.2 40.6 661%
EUR million 1), (continuing
and discontinued operations)
--------------------------------------------------------------------------------
Earnings/share, EUR, 2.30 0.18 more 2.29 0.09 more
(discontinued operations) than a than a
thousan thousan
d d
--------------------------------------------------------------------------------
Earnings/share, EUR, 2.67 0.59 353% 2.47 0.32 672%
(continuing and discontinued
operations)
--------------------------------------------------------------------------------

1) attributable to equity holders of the parent company

INFORMATION SESSION, WEBCAST AND CONFERENCE CALL

YIT will hold a news conference on the interim report on Friday, July 26, 2013,
at 10:00 a.m. (Finnish Time, EEST). The news conference will be held in
English. The news conference is both for YIT Corporation and Caverion
Corporation. The 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, Kari Kauniskangas, can be viewed live on YIT's website at
www.yitgroup.com/webcast. The live webcast will start at 10:00 a.m. (Finnish
time, EEST). A recording of the webcast will be available at the same address
starting at approximately 2:00 p.m. (Finnish time, EEST).

It is also possible to participate in the event through a conference call.
Participants are requested to call the assigned number (+44 (0)207 1620 177) at
least five minutes before the conference call begins, at 9:55 a.m. (Finnish
time, EEST) at the latest. The participants will be asked to provide the
following conference ID: 934550. During the webcast and conference call, all
questions should be presented in English. At the end of the event, there will
also be an opportunity for the media to ask questions in Finnish.

Schedule in different time zones:

Interim Report News conference, conference Recorded webcast
published call and live webcast available
--------------------------------------------------------------------------------
EEST 8:00 10:00 14:00
(Helsinki)
--------------------------------------------------------------------------------
CEST (Paris, 7:00 9:00 13:00
Stockholm)
--------------------------------------------------------------------------------
BST (London) 6:00 8:00 12:00
--------------------------------------------------------------------------------
US EDT (New 1:00 3:00 7:00
York)
--------------------------------------------------------------------------------

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 e-mail to InvestorRelations@yit.fi or by telephone on +358
20 433 2429.

YIT CORPORATION

Kari Kauniskangas:

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 - JUNE 30, 2013

CONTENTS

-- Group financial development based on segment reporting
-- Development by business segment
-- Personnel
-- Business development
-- Strategic objectives
-- Group financial development based on Group reporting (IFRS, IFRIC 15)
-- Resolutions passed at the Annual General Meeting
-- Resolutions passed at the Extraordinary General meeting
-- Shares and shareholders
-- Most significant short-term business risks and risk management
-- Outlook for 2013
-- Tables to the interim report

GROUP FINANCIAL DEVELOPMENT BASED ON SEGMENT REPORTING

Accounting principles applied in the interim report

YIT Corporation's management follows the development of the company's business
according to the percentage of completion-based reporting method for each
segment. Therefore, the descriptive part of the interim report focuses on
describing the company's performance according to this reporting. YIT also
reports on its operations in accordance with IFRS guidelines, where the company
applies, for example, the IFRIC 15 guidelines. The effects of the differences
of the recognition principles are presented in detail in the tables to the
interim report.

The share belonging to the Building Services business is shown under
discontinued operations in the income statement and cash flow statement. The
income and expenses related to assets and liabilities transferred to Caverion
Corporation in the partial demerger have been allocated to discontinued
operations in the income statement. In accordance with IFRS 5, the balance
sheets for the comparison periods preceding the demerger include the assets and
liabilities related to the Building Services business transferred to Caverion
Corporation in connection with the implementation of the demerger. As such, the
balance sheets do not illustrate the financial position of the continuing
operations. In addition, the interim report contains non-IFRS figures as
historical reference figures, which best illustrate the financial position of
the continuing operations.

In addition to Caverion's net result, the costs relating to the demerger and
the difference between the book value and fair value of net assets transferred
to Caverion are reported under discontinued operations.

Revenue of business segments decreased slightly

The revenue of YIT's segments decreased by 5 percent in January-June compared
to the previous year, amounting to EUR 882.9 million (1-6/2012: EUR 933.3
million). Revenue for the second quarter decreased from the previous year,
amounting to EUR 430.9 million (4-6/2012: EUR 488.9 million). Revenue for the
second quarter grew in International Construction Services compared to the
previous year. The growth in International Construction Services revenue was
supported by the high volume of housing production and continued good
residential sales in Russia. Changes in foreign exchange rates reduced the
segments' revenue for January-June by EUR 5.9 million compared to the previous
year.

In January-June, Finland accounted for 70 percent (1-6/2012: 74%) of the
Group's revenue according to segment reporting, Russia for 24 percent
(1-6/2012: 20%) and the Baltic countries, the Czech Republic and Slovakia for 6
percent (1-6/2012: 6%).

Operating profit increased clearly in International Construction Services

YIT's operating profit based on segment reporting decreased by 8 percent
compared to the previous year, amounting to EUR 74.2 million in January-June
(1-6/2012: EUR 80.5 million). The operating profit margin based on segment
reporting was 8.4 percent (1-6/2012: 8.6%). The operating profit for the review
period does not include borrowing costs according to IAS 23 which, due to the
amendment to the recording method since the beginning of 2013, are included in
borrowing costs (the comparison figures have been adjusted correspondingly).
IAS 23 defines the recording method of borrowing costs in long-term
construction projects.

Operating profit for the second quarter decreased from the previous year,
amounting to EUR 38.3 million (4-6/2012: EUR 43.4 million).

The operating profit in International Construction Services increased clearly
compared to the previous year. In Construction Services Finland, operating
profit decreased clearly from the previous year.

The depreciations booked by YIT amounted to EUR 10.5 million euros during the
review period (1-6/2012: EUR 10.2 million).

Order backlog remained strong

The order backlog of YIT's segments increased by 5 percent compared to the
previous year, amounting to EUR 2,810.8 million (6/2012: EUR 2,686.6 million).
The order backlog was at the same level as at the end of March 2013. The order
backlog grew primarely as a result of residential start-ups; the Group started
construction of more than 2,000 residential units during the second quarter.

Capital expenditure and acquisitions

Gross capital expenditure on non-current assets included on the balance sheet
totalled EUR 13.9 million during January-June (1-6/2012: EUR 12.5 million),
representing 1.6 percent of revenue (1-6/2012: 1.3%). Investments in
construction equipment amounted to EUR 4.2 million (1-6/2012: EUR 5.2 million)
and investments in information technology to EUR 2.5 million (1-6/2012: EUR 4.8
million).

YIT made no acquisitions during the review period. YIT has increased its
holding in YIT Moskovia by 5.92 percentage points during the review period and
now holds all of the shares in the company. The purchase price was EUR 5.1
million. Other investments, including acquisitions, amounted to EUR 7.2 million
(1-6/2012: EUR 2.8 million).

During the second quarter YIT sold information technology assets in connection
with the demerger to Caverion Corporation. The sales price was EUR 20.8
million.

Project start-ups impaired cash flow

The continuing operations' operating cash flow after investments amounted to
EUR -82.2 million in January-June (1-6/2012: EUR -46.9 million). The continuing
operations' operating cash flow after investments amounted to EUR -76.9 million
in April-June (4-6/2012: EUR 61.0 million). Plot investments and increasing
volume of residential production impaired the cash flow.

The discontinued operations' operating cash flow after investments amounted to
EUR -44.0 million in January-June (1-6/2012: EUR -13.3 million). The
discontinued operations' operating cash flow after investments amounted to EUR
-41.8 million in April-June (4-6/2012: EUR -18.4 million).

Operating cash flow after investments for January-June, including both the
continuing and discontinued operations, amounted to EUR -126.2 million (EUR
1-6/2012: EUR 33.6 million). Operating cash flow after investments for
April-June, including both the continuing and discontinued operations, amounted
to EUR -118.7 million (EUR 4-6/2012: EUR 42.6 million).

The continuing operations' return on investment based on segment reporting
amounted to 13.9 percent for the last 12 months (4/2012-3/2013: 15.0%). At the
end of June, the Group's invested capital based on segment reporting amounted
to EUR 1,492,5 million (3/2013: EUR 1,443.4 million). Invested capital is
calculated by deducting non-interest bearing liabilities from the balance sheet
total.

Profit before taxes decreased

The continuing operations' profit before taxes based on segment reporting
decreased by 8 percent compared to the previous year, amounting to EUR 60.4
million for January-June (1-6/2012: EUR 65.9 million). Profit before taxes for
the second quarter decreased by 17 percent from the previous year to EUR 29.8
million (4-6/2012: EUR 35.7 million).

The continuing operations' profit based on segment reporting decreased by 10
percent compared to the previous year, amounting to EUR 46.4 million for
January-June (1-6/2012: EUR 51.8 million). The profit for the second quarter
decreased by 20 percent from the previous year to EUR 23.0 million (4-6/2012:
EUR 28.9 million).

Caverion's result reported as part of discontinued operations

The profit of the discontinued operations was EUR 288.4 million in January-June
(1-6/2012: EUR 22.6 million). The profit of the discontinued operations for the
second quarter was EUR 286.2 million (4-6/2012: EUR 11.7 million). In addition
to Caverion's net result, the costs relating to the demerger and the difference
between the book value and fair value of net assets transferred to Caverion are
reported under discontinued operations.

The profit for the review period, including continuing and discontinued
operations, totalled EUR 334.8 million in January-June (1-6/2012: EUR 74.4
million). The profit for the second quarter including the continuing and
discontinued operations amounted to EUR 309.2 million (4-6/2012: EUR 40.6
million).

Earnings per share of continuing operations decreased

Earnings per share of continuing operations based on segment reporting
decreased by 10 percent from the year before, amounting to EUR 0.37 in
January-June (1-6/2012: EUR 0.41). Earnings per share for the second quarter
decreased by 22 percent from the year before, amounting to EUR 0.18 (4-6/2012:
EUR 0.23).

Earnings per share of discontinued operations amounted to EUR 2.30 in
January-June (1-6/2012: EUR 0.18). Earnings per share of discontinued
operations for the second quarter amounted to EUR 2.29 (4-6/2012: EUR 0.09).

Earnings per share for the review period, including continuing and discontinued
operations, totalled EUR 2.67 in January-June (1-6/2012: EUR 0.59). Earnings
per share for the second quarter including the continuing and discontinued
operations amounted to EUR 2.47 (4-6/2012: EUR 0.32).

The effective tax rate of the continuing operations based on segment reporting
was 23.1 percent during the review period (1-6/2012: 21.0%).

DEVELOPMENT BY BUSINESS SEGMENT

Development by business segment is presented using figures compliant with
segment reporting.

CONSTRUCTION SERVICES FINLAND

1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
-----------------------------------------------------------------------------
Revenue, EUR million 605.2 677.4 -11% 279.2 347.9 -20%
-----------------------------------------------------------------------------
Operating profit, EUR million 49.4 64.9 -24% 22.9 33.5 -32%
-----------------------------------------------------------------------------
Operating profit margin, % 8.2 9.6 8.2 9.6
-----------------------------------------------------------------------------

6/13 6/12 Change 6/13 3/13 Change
--------------------------------------------------------------------------------
Operative invested capital, 649.5 515.3 26% 649.5 584.2 11%
EUR million
--------------------------------------------------------------------------------
Order backlog, EUR million 1,584.0 1,499.9 6% 1,584.0 1,424.9 11%
--------------------------------------------------------------------------------

7/12-6/13 4/12-3/13
------------------------------------------------------------------------------
Return on operative invested capital (last 12 months), % 20.4 22.7
------------------------------------------------------------------------------

The revenue of Construction Services Finland decreased compared to the previous
year, amounting to EUR 605.2 million in January-June (1-6/2012: EUR 677.4
million). The revenue for the second quarter decreased by 20 percent from the
previous year to EUR 279.2 million (4-6/2012: EUR 347.9 million). Revenue
decreased in residential construction as well as business premises during the
second quarter.

The segment's operating profit for January-June decreased clearly from the
previous year to EUR 49.4 million (1-6/2012: EUR 64.9 million). Operating
profit for the second quarter decreased clearly from the previous year to EUR
22.9 million (4-6/2012: EUR 33.5 million). The operating profit of business
premises operations decreased significantly. Operating profit for the reference
period was supported by sale of several significant business premises projects.
Operating profit decreased also in residential construction due to lower
residential sales volume compared to the previous year.

The order backlog grew slightly on the previous year, amounting to EUR 1,584.0
million at the end of June (6/2012: EUR 1,499.9 million). The order backlog
grew from the end of March 2013, at which time it stood at EUR 1,424.9 million.

The segment's capital tied into plot reserves totalled EUR 282.6 million at the
end of June (3/2013: EUR 289.1 million). The reserves included 1,818,000 square
metres of residential plots (3/2013: 1,832,000) and 905,000 square metres of
business premises (3/2013: 870,000).

Investor deals complemented residential sales

The change in asset transfer tax legislation that took force at the beginning
of March had a positive effect on residential sales particularly in February,
while sales have been slightly slower than normal since the beginning of March,
as was expected. YIT's sales volume in euros has, however, increased every
month since March. During the second quarter, demand focused particularly on
residential units in the final stages of construction and completed residential
units. Housing prices remained stable during the first half of the year.
Interest rates remained low during the second quarter, but customer's access to
financing has become more difficult with banks tightening their credit terms.
YIT has also developed cross-border sales between the different countries in
which YIT operates. Particularly Russian customers have been interested in
residential and holiday projects in Eastern Finland.

Residential sales in Finland have been at the normal level in July.

Residential construction in Finland, number of residential units

1-6/13 1-6/12 Change 4-6/13 1-3/13 Change
--------------------------------------------------------------------------------
Sold 1,432 1,492 -4% 717 715 0%
--------------------------------------------------------------------------------
- of which directly to consumers 995* 950 5% 334 661* -49%
--------------------------------------------------------------------------------
Start-ups 1,561 1,555 0% 975 586 66%
--------------------------------------------------------------------------------
- of which directly to consumers 1,124 1,013 11% 592 532 11%
--------------------------------------------------------------------------------
Completed 1,620 1,552 4% 725 895 -19%
--------------------------------------------------------------------------------
- of which directly to consumers 1,086 1,346 -19% 526 560 -6%
--------------------------------------------------------------------------------
Under construction at the end of 4,181 4,109 2% 4,181 3,931 6%
the period
--------------------------------------------------------------------------------
- of which sold at the end of 2,333 2,293 2% 2,333 2,247 4%
the period
--------------------------------------------------------------------------------
For sale at the end of the 2,412 2,245 7% 2,412 2,153 12%
period
--------------------------------------------------------------------------------
- of which completed 564 429 31% 564 469 20%
--------------------------------------------------------------------------------

*) Includes 221 residential units sold to Ålandsbanken's housing fund.

Changes in the number of residential units may take place after the start of
construction due to the division or combination of residences.

The focus of YIT's housing construction is on residential development projects
aimed directly at consumers in accordance with market demand. YIT is also
active in housing production aimed at investors. During the second quarter, YIT
started up the construction of 592 residential units as own development
projects. In addition, YIT started construction of 383 residential units as
tender-based projects in the second quarter. YIT has actively replenished its
plot reserves by acquiring plots and making preliminary agreements on plots in
order to also ensure good opportunities for residential start-ups in the
future.

Of the residential units under construction, 56 percent have been sold (6/2012:
56%), which reduces YIT's sales risk. The sales inventory is focused on
medium-priced residential production: approximately 66 percent of the
residential units for sale are priced at less than EUR 300,000.

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 for sale amounted to EUR 397.2 million at the end
of June 2013 (6/2012: EUR 301.4 million).

Challenges in the business and office premises market

A slightl downward trend continued in the business and office premises market
during the second quarter of the year. The order backlog of YIT's business and
office premises operations remained at the level of the end of the first
quarter. The leasing of business and office premises under construction picked
up in April-June: lease agreements were signed on approximately 19,700 m² of
premises. Rents for business premises and investors' yield requirements
remained stable in the second quarter.

YIT signed an agreement with Finnreit Fund Management Company Ltd on the sale
of a second project related to the assisted living facilities located in
Hyrylä, Tuusula, Finland, to the eQ Care (non-UCITS) fund. YIT expects to sell
several significant business premises projects during the second half of the
year: Tikkurila Travel Centre Dixi, Avia Line 3 and Bisnespaja Avia in Vantaa
and Motorcenter Espoonlahti in Espoo. The total value of the projects is more
than EUR 80 million.

Development of infrastructure services remained stable

The demand for infrastructure construction remained stable in the second
quarter, but the order backlog of infrastructure services at the end of June
2013 was lower than the previous year. YIT has secured several regional
contracts, such as in Hyvinkää, Hämeenlinna, Kauhajoki and Kotka. The contract
agreements will be signed and the projects included in the order backlog during
the third quarter. The value of these road maintenance projects is
approximately EUR 64 million.

Significant on-going road projects proceeded according to plans during the
second quarter.

INTERNATIONAL CONSTRUCTION SERVICES

1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
-----------------------------------------------------------------------------
Revenue, EUR million 264.7 241.3 10% 145.7 133.4 9%
-----------------------------------------------------------------------------
Operating profit, EUR million 29.2 23.8 23% 17.6 14.1 25%
-----------------------------------------------------------------------------
Operating profit margin, % 11.0 9.9 12.1 10.6
-----------------------------------------------------------------------------

6/13 6/12 Change 6/13 3/13 Change
--------------------------------------------------------------------------------
Operative invested capital, 709.4 655.7 8% 709.4 718.7 -1%
EUR million
--------------------------------------------------------------------------------
Order backlog, EUR million 1,226.8 1,186.7 3% 1,226.8 1,285.3 -5%
--------------------------------------------------------------------------------

7/12-6/13 4/12-3/13
------------------------------------------------------------------------------
Return on operative invested capital (last 12 months), % 12.6 12.0
------------------------------------------------------------------------------

The revenue of International Construction Services for January-June increased
by 10 percent compared to the previous year, amounting to EUR 264.7 million
(1-6/2012: EUR 241.3 million). The revenue for the second quarter increased by
9 percent from the previous year to EUR 145.7 million (4-6/2012: EUR 133.4
million).

The operating profit for January-June increased clearly compared to the
previous year, amounting to EUR 29.2 million (1-6/2012: EUR 23.8 million). The
operating profit for the second quarter increased clearly compared to the
previous year, amounting to EUR 17.6 million (4-6/2012: EUR 14.1 million). The
growth in revenue and operating profit was supported by the high volume of
housing production and continued good residential sales in Russia.

The order backlog at the end of June was on a par with the previous year,
amounting to EUR 1,226.8 million (6/2012: EUR 1,186.7 million). The order
backlog decreased slightly from the end of March 2013, at which time it stood
at EUR 1,285.3 million. The segment's order backlog was partially decreased by
weakening of the ruble, which had an impact of EUR 64.6 million in
January-June.

The costs of completing the current residential and business premises
development projects for sale in International Construction Services amounted
to EUR 547.5 million at the end of June 2013 (6/2012: EUR 462.0 million).

The segment's return on operative invested capital for the last 12 months was
12.6 percent, which was still below the Group's strategic target (20%). YIT
aims to increase the segment's return on invested capital primarily by
increasing the volume of operations, improving project-level profitability and
further increasing capital efficiency.

The segment's capital tied into plot reserves totalled EUR 377.5 million at the
end of June (3/2013: EUR 401.5 million). The reserves included 2,688,000 square
metres of residential plots (3/2013: 2,751,000) and 534,000 square metres of
business premises in Russia, the Baltic countries, the Czech Republic and
Slovakia (3/2013: 574,000).

Russian residential sales continued well

Russia generated 81 percent of the revenue of International Construction
Services for January-June (1-6/2012: 77%). Revenue in Russia increased clearly
from the previous year to EUR 214.0 million (1-6/2012: EUR 185.7 million).

Capital tied into plot reserves in Russia amounted to EUR 297.1 million at the
end of June (3/2013: EUR 314.2 million). The reserves included 2,315,000 square
metres of residential plots (3/2013: 2,353,000) and 436,000 square metres of
business premises (3/2013: 446,000).

Residential construction in Russia, number of residential units

1-6/13 1-6/12 Change 4-6/13 1-3/13 Change
--------------------------------------------------------------------------------
Sold 1,926 1,889 2% 1,037 889 17%
--------------------------------------------------------------------------------
Start-ups 2,087 2,663 -22% 941 1,146 -18%
--------------------------------------------------------------------------------
Completed 1) 1,225 1,358 -10% 713 512 39%
--------------------------------------------------------------------------------
Under construction at the end of 9,518 8,670 10% 9,518 9,290 2%
the period
--------------------------------------------------------------------------------
- of which sold at the end of 3,429 3,159 9% 3,429 3,148 9%
the period
--------------------------------------------------------------------------------
For sale at the end of the 6,706 5,987 12% 6,706 6,838 -2%
period
--------------------------------------------------------------------------------
- of which completed 617 476 30% 617 696 -11%
--------------------------------------------------------------------------------

Under construction at the end of the 6/13 6/12 Change 6/13 3/13 Change
period
--------------------------------------------------------------------------------
St. Petersburg 1,978 2,290 -14% 1,978 2,168 -9%
--------------------------------------------------------------------------------
Moscow region 4,317 4,016 7% 4,317 4,198 3%
--------------------------------------------------------------------------------
Yekaterinburg, Kazan, Rostov-on-Don 3,223 2,364 36% 3,223 2,924 10%
and Moscow
--------------------------------------------------------------------------------

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

In Russia, the focus of operations is on residential development projects in
St. Petersburg, Moscow and cities in the Moscow region, Yekaterinburg, Tyumen,
Rostov-on-Don and Kazan. YIT actively continued plot investments in Moscow and
St. Petersburg during the second quarter.

Residential sales were supported by continued favourable consumer confidence in
Russia. Residential sales have also been supported by YIT's established
position as a reliable construction company in Russia, YIT's diverse housing
offering, YIT's own marketing and sales promotion measures and extensive
housing loan cooperation with banks. The significance of loan financing has
remained high in Russia, and, in the second quarter, customers have taken out
housing loans in 51 percent of YIT's residential sales. YIT has also developed
sales between the different countries in which YIT operates.

Interest rates for mortgages increased further in Russia during the second
quarter. YIT has succeeded in negotiating new, favourable loan programmes with
banks, and as a result, the increase in the interest rates of YIT's customers'
mortgages has been lower than expected.

Residential sales continued being favourable in the second quarter, and sales
have been good in July as well. Clearly increased offering in the ”economy”
category in St. Petersburg has slowed down residential sales in YIT's target
customer group. Housing prices remained stable during the second quarter of
2013.

Based on the favourable demand, YIT has started up new residential projects in
Russia, and in the second quarter start-ups began in the Moscow region and
Yekaterinburg as planned. In St. Petersburg, the authorities permitting process
has become faster, and YIT estimates that it will increase the number of
start-ups in St. Petersburg during the latter half of the year following a slow
start of the year. Construction costs have continued growing moderately.

The number of residential units for sale has been increased in a controlled
manner, and the sales inventory at the end of June was geographically balanced.
The number of completed but unsold residential units increased during the
second quarter. Of the residential units under construction, 36 percent had
been sold (6/2012: 36%).

After the handover of residential projects, YIT offers its customers service
and maintenance in St. Petersburg, the Moscow region, Yekaterinburg and
Rostov-on-Don. At the end of June 2013, YIT was responsible for the service and
maintenance of approximately 14,500 residential units.

Recovery of the residential market has continued in the Baltic countries and
Central Eastern Europe

Estonia, Latvia, Lithuania, the Czech Republic and Slovakia accounted for 19
percent of the revenue of International Construction Services for January-June
(1-6/2012: 23%). Revenue generated in these countries decreased compared to the
year before due to lower contracting volume, amounting to EUR 50.7 million
(1-6/2012 EUR 55.6 million). Capital tied into plot reserves in the Baltic
countries, the Czech Republic and Slovakia totalled EUR 80.4 million at the end
of June (3/2013: EUR 87.3 million). The reserves included 373,000 square metres
of residential plots (3/2013: 398,000) and 98,000 square metres of business
premises (3/2013: 128,000).

Residential sales improved in the Baltic countries, the Czech Republic and
Slovakia during the second quarter on the previous year. Russian customers have
also been interested in YIT's residential projects in Riga, Latvia, and Prague,
the Czech Republic. YIT will shift the focus of operations from tender-based
production to own residential development projects in order to improve
profitability as residential demand recovers.

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

1-6/13 1-6/12 Change 4-6/13 1-3/13 Change
--------------------------------------------------------------------------------
Sold 243 167 46% 134 109 23%
--------------------------------------------------------------------------------
Start-ups 400 284 41% 286 114 151%
--------------------------------------------------------------------------------
Completed 146 279 -48% 0 146 -
--------------------------------------------------------------------------------
Under construction at the end of 970 615 58% 970 684 42%
the period
--------------------------------------------------------------------------------
- of which sold at the end of 166 110 51% 166 102 63%
the period
--------------------------------------------------------------------------------
For sale at the end of the 900 718 25% 900 750 20%
period
--------------------------------------------------------------------------------
- of which completed 96 213 -55% 96 168 -43%
--------------------------------------------------------------------------------

Construction of 286 residential units was started during the second quarter of
2013 (4-6/2012: 284). At the end of June, there were 970 residential units
under construction (6/2012: 615). During the review period, housing prices
increased slightly in the Baltic countries and remained stable in the Czech
Republic and Slovakia. The demand for YIT's residential units has continued to
be good.

YIT's residential sales inventory has grown 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-June, a total of 243 residential
units were sold in these countries (1-6/2012: 167). At the end of June, there
were 900 residential units for sale (6/2012: 718), of these 96 were completed
(6/2012: 213). No residential units were completed during the second quarter of
2013 (4-6/2012: 47).

Construction of business premises in the Baltic countries and Central Eastern
Europe

During the second quarter, YIT started a new property development project by
starting construction of a Prisma shopping centre for SOK in Vilnius. The
project is realised by YIT's Lithuanian subsidiary YIT Kausta, on whose plot
the Prisma will be constructed. The total value of the project is approximately
EUR 12 million. The trade agreement was signed in June 2013.

PERSONNEL

Personnel by business segment 6/13 6/12 Change 6/13 3/13 Change
-------------------------------------------------------------------------------
Construction Services Finland 3,767 3,918 -4% 3,767 3,449 9%
-------------------------------------------------------------------------------
International Construction Services 2,829 2,713 4% 2,829 2,905 -3%
-------------------------------------------------------------------------------
Corporate Services 308 370 -17% 308 335 -8%
-------------------------------------------------------------------------------
Group, total 6,904 7,001 -1% 6,904 6,689 3%
-------------------------------------------------------------------------------

Personnel by country 6/13 6/12 Change 6/13 3/13 Change
--------------------------------------------------------------------------------
Finland 3,979 4,327 -8% 3,979 3,817 4%
--------------------------------------------------------------------------------
Russia 2,124 2,019 5% 2,124 2,180 -3%
--------------------------------------------------------------------------------
Baltic countries, Czech Republic and 801 655 22% 801 692 16%
Slovakia
--------------------------------------------------------------------------------
Group, total 6,904 7,001 -1% 6,904 6,689 3%
--------------------------------------------------------------------------------

In January-June 2013, the Group employed 6,692 people on average (1-6/2012:
6,661). At the end of June, the Group employed 6,904 people (6/2012: 7,001).
The personnel expenses for January-June amounted to a total of EUR 148.2
million (1-6/2012: EUR 149.4 million). During the review period YIT hired
approximately 640 trainees. In January-June, work safety improved compared to
the previous year. The Groups accident frequency (number of accidents per one
million hours worked) was 10.2 (1-6/2012: 14.6)

The cost effect of YIT's share-based incentive scheme was about EUR 1.7 million
in January-June 2013 (1-6/2012: EUR 1.5 million).

BUSINESS DEVELOPMENT

After the partial demerger, YIT will increasingly focus its business on
selected business segments and aims at accelerating reform. YIT's aim is to
improve quality and customer service and continuously provide consumers with
new, innovative housing solutions. With decreasing family sizes, residential
demand is increasingly focused on smaller residential units. During the review
period, YIT introduced the Mini-apartment, a new housing concept for efficient
use of space that can be adjusted to diverse housing functions. Mini-apartments
are small apartments for permanent housing, also available as fully furnished
and equipped. Their target group comprises students, city-singles and
investors. New Mini-apartments were launched in residential projects in Finland
and Moscow, Russia, during spring 2013. The apartments have enjoyed excellent
demand.

STRATEGIC OBJECTIVES

YIT Corporation's Board of Directors confirmed the strategy and financial
objectives of YIT's continuing operations for 2014-2016 on June 3, 2013. YIT's
strategic objective is well-managed, profitable growth. This is pursued through
own development projects in all business segments (housing, business premises,
infrastructure) and in all current geographical regions (Finland, Russia, the
Baltic countries and Central Eastern Europe). In particular, growth is pursued
in emerging markets and residential construction. Other focal points include
improving resistance to economic cycles and widening financial operating space
as well as accelerating reform. The Group's long-term strategic target levels
are: 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 debt reduction, equity ratio of 40 percent and dividend
payout of 40-60 percent of net profit for the period. The target levels are
based on figures reported by the company 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.

YIT published a stock exchange release on the confirmation of the strategy on
June 4, 2013. YIT's strategy and long-term financial targets are described in
more detail at YIT's Capital Market Day, which will be arranged on September
19, 2013, in Moscow. For additional information and instructions for
registering for the Capital Market Day, please visit YIT's Investors site,
http:www.yitgroup.com/investors.

GROUP FINANCIAL DEVELOPMENT BASED ON GROUP REPORTING (IFRS, IFRIC 15)

Continuing operations

1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
--------------------------------------------------------------------------------
Revenue, EUR million 882.7 967.8 -9% 437.1 523.3 -16%
--------------------------------------------------------------------------------
Operating profit, EUR million 63.3 84.6 -25% 32.3 47.4 -32%
--------------------------------------------------------------------------------
Operating profit margin, % 7.2 8.7 7.4 9.1
--------------------------------------------------------------------------------
Profit before taxes, EUR million 58.5 77.9 -25% 28.2 44.0 -36%
--------------------------------------------------------------------------------
Profit for the review period, 44.9 60.6 -26% 22.0 35.1 -37%
EUR million 1)
--------------------------------------------------------------------------------
Earnings/share, EUR 0.36 0.48 -25% 0.18 0.28 -36%
--------------------------------------------------------------------------------
Operating cash flow after -82.2 46.9 -76.9 61.0
investments, EUR million
--------------------------------------------------------------------------------

1) attributable to equity holders of the parent company

6/13 6/12 Change 6/13 3/13 Change
--------------------------------------------------------------------------------
Order backlog, EUR million 3,176.0 3,050.5 4% 3,176.0 3,045.9 4%
--------------------------------------------------------------------------------
Return on investment (last 12.6 12.6 14.3
12 months) %, non-IFRS
--------------------------------------------------------------------------------
Equity ratio, %, (comparison 34.9 33.4 34.9 37.3
figures non-IFRS)
--------------------------------------------------------------------------------
Gearing ratio, %, 109.8 109.7 109.8 94.0
(comparison figures
non-IFRS)
--------------------------------------------------------------------------------

Discontinued operations

1-6/13 1-6/12 Change 4-6/13 4-6/12 Change
--------------------------------------------------------------------------------
Profit for the review period, 288.4 22.6 more 286.2 11.7 more
EUR million 1), (discontinued than a than a
operations) thousan thousan
d d
--------------------------------------------------------------------------------
Profit for the review period, 333.3 83.2 301% 308.2 46.7 560%
EUR million 1), (continuing
and discontinued operations)
--------------------------------------------------------------------------------
Earnings/share, EUR, 2.30 0.18 more 2.28 0.09 more
(discontinued operations) than a than a
thousan thousan
d d
--------------------------------------------------------------------------------
Earnings/share, EUR, 2.66 0.66 302% 2.46 0.37 564%
(continuing and discontinued
operations)
--------------------------------------------------------------------------------

Revenue from continuing operations based on Group reporting decreased by 9
percent compared to the previous year, amounting to EUR 882.7 million in
January-June (1-6/2012: EUR 967.8 million). Revenue for the second quarter
decreased 16 percent from the previous year, amounting to EUR 437.1 million
(4-6/2012: EUR 523.3 million). In Group-level reporting, own residential
development projects are only recognised as income upon project delivery. The
completion schedules for own development projects affect the Group's revenue
recognition, and therefore Group-level figures may fluctuate greatly between
different quarters. The number of residential units completed in Russia, the
Baltic countries and Central Eastern Europe during the second quarter was
clearly lower than the year before, while in Finland, the number of residential
units completed was clearly higher than the year before.

Following IFRIC adjustments, the operating profit of the Group's continuing
operations for January-June decreased by 25 percent compared to the previous
year, amounting to EUR 63.3 million (1-6/2012: EUR 84.6 million). Following
IFRIC adjustments, the Group's operating profit margin for January-June was 7.2
percent (1-6/2012: 8.7%). Operating profit for the second quarter decreased by
32 percent from the previous year to EUR 32.3 million (4-6/2012: EUR 47.4
million). The operating profit margin for the second quarter was 7.4 percent
(4-6/2012: 9.1%).

Profit before taxes of continuing operations based on Group reporting decreased
by 25 percent compared to the previous year, amounting to EUR 58.5 million in
January-June (1-6/2012: EUR 77.9 million). Profit before taxes for the second
quarter decreased by 36 percent from the previous year to EUR 28.2 million
(4-6/2012: EUR 44.0 million).

The profit of continuing operations based on Group reporting for January-June
decreased by 26 percent compared to the previous year, amounting to EUR 44.9
million (1-6/2012: EUR 60.6 million). Profit for the second quarter decreased
by 37 percent from the previous year to EUR 22.0 million (4-6/2012: EUR 35.1
million).

The profit of discontinued operations based on Group reporting was EUR 288.4
million in January-June (1-6/2012: EUR 22.6 million). The profit of
discontinued operations for the second quarter was EUR 286.2 million (4-6/2012:
EUR 11.7 million).

The profit for the review period based on Group reporting, including continuing
and discontinued operations, totalled EUR 333.3 million in January-June
(1-6/2012: EUR 83.2 million). The profit for the second quarter including the
continuing and discontinued operations amounted to EUR 308.2 million (4-6/2012:
EUR 46.7 million).

Earnings per share of continuing operations based on Group reporting decreased
by 25 percent from the year before, amounting to EUR 0.36 in January-June
(1-6/2012: EUR 0.48). Earnings per share for the second quarter decreased by 36
percent from the year before, amounting to EUR 0.18 (4-6/2012: EUR 0.28).

Earnings per share of discontinued operations based on Group reporting amounted
to EUR 2.30 million in January-June (1-6/2012: EUR 0.18). Earnings per share of
discontinued operations for the second quarter amounted to EUR 2.28 (4-6/2012:
EUR 0.09).

Earnings per share for the review period based on Group reporting, including
continuing and discontinued operations, totalled EUR 2.66 in January-June
(1-6/2012: EUR 0.66). Earnings per share for the second quarter including the
continuing and discontinued operations amounted to EUR 2.46 (4-6/2012: EUR
0.37).

In January-June, the effective tax rate based on Group reporting was 23.3
percent (1-6/2012: 22.1%).

The order backlog of the continuing operations based on Group reporting
amounted to EUR 3,176.0 million at the end of June (6/2012: EUR 3,050.5
million).

Return on investment amounted to 12.6 percent for the last 12 months
(4/2012-3/2013: 14.3%, non-IFRS). At the end of June, the Group's invested
capital amounted to EUR 1,492.5 million (6/2012: EUR 1,333.8 million,
non-IFRS). Invested capital is calculated by deducting non-interest bearing
liabilities from the balance sheet total. The Group's balance sheet total at
the end of June was EUR 2,426.8 million (6/2012: EUR 2,261.4 million,
non-IFRS).

Of the Group's invested capital, 37.9 percent (3/2013: 41.5%), or EUR 565.9
million (3/2013: EUR 600,4 million, non-IFRS) was invested in Russia. The
amount of capital invested in Russia decreased slightly compared to the end of
March; the exchange rate changes of the ruble decreased the capital invested by
EUR 43.9 million in April-June. Smaller project sizes, gradual building in
projects, sales of residential units at an earlier construction phase, improved
terms of payment and an increased share of mortgage deals all increased capital
efficiency.

The equity ratio decreased compared to the end of March 2013, amounting to 34.9
percent (3/2013: 37.3%, non-IFRS).

Diverse capital structure and strong liquidity position following the partial
demerger

YIT's financing consists of diverse sources of financing following the
execution of the partial demerger. Cash and cash equivalents amounted to EUR
49.7 million at the end of June (3/2013: EUR 63.9 million, non-IFRS). In
addition, YIT has undrawn committed credit facilities amounting to EUR 280
million and undrawn overdraft facilities amounting to EUR 67.8 million. Of the
credit facilities, EUR 30 million will fall due in December 2014 and EUR 250
million in December 2015. YIT Corporation's bank loan and credit facility
agreements include a financial covenant linked to YIT's equity ratio, which
took effect upon the registration of the demerger.

During 2013, YIT signed loan agreements on behalf of Caverion Corporation, the
company established in the partial demerger. These included a loan agreement
with a total value of EUR 267 million with Nordic bank groups and two loan
agreements with the Nordic Investment Bank, with a total value of EUR 45
million. At the time of the registration of the partial demerger, June 30,
2013, these loan agreements and related liabilities and obligations were
transferred to Caverion Corporation.

During the review period, YIT commenced a voluntary offer to buy back the
company's domestic floating rate bonds falling due in August 2014 and March
2014. In addition, YIT offered to buy back the floating rate bonds due
September 2016 issued in Sweden. YIT's offer to prematurely buy back the bonds
was related to the partial demerger approved by the Board of Directors of YIT
on February 21, 2013, and executed on June 30, 2013. The purpose of the buyback
offer was to offer the bond holders an option to dispose of their holdings of
the bonds prior to the implementation of YIT's partial demerger.

According to the final result of the buyback offer, 0.2 percent of the holders
of bonds due August 2014 accepted the buyback offer. The outstanding principal
amount of the remaining bonds due August 2014 is EUR 49,900,000. Of the holders
of the bonds due March 2014, 43.1 percent accepted the buyback offer. The
outstanding principal amount of the remaining bonds due March 2014 is EUR
28,450,000. YIT decided on June 24, 2013, to annul the bonds due August 2014
and bonds due March 2014 transferred to the company. Of the holders of the
floating rate bonds due September 2016 issued in Sweden, 24.0 percent accepted
the buyback offer. The outstanding principal amount of the remaining bonds due
September 2016 is EUR 19,007,600.

During the review period, YIT convened the holders of the fixed-rate bonds due
2015 issued on March 26, 2010, and holders of the fixed-rate bonds due 2016
issued on June 20, 2011, to noteholders' meetings. YIT's Board of Directors
proposed that the noteholders' meeting decide that the noteholders be
compensated for the effects of the partial demerger by increasing the payable
coupon interest by 0.868 percentage points to 5.691 percent (bond due 2015) and
the payable coupon interest by 0.817 percentage points to 5.567 percent (bond
due 2016). The noteholders' meetings unanimously accepted the proposals of
YIT's Board of Directors. The amendments to the coupon rates will enter into
force from the next interest payment date.

Early in the year, YIT signed a EUR 150 million bank financing agreement, of
which a total of EUR 12.7 million has been withdrawn. The arrangement was made
to finance the buyback offer of floating-rate bonds described above. YIT will
not be able to raise additional financing under this loan agreement in the
future.

The gearing ratio increased during the second quarter of 2013 due to financing
investments and new project start-ups. The gearing ratio was 109.8 per cent at
the end of June (3/2013: 94.0%, non-IFRS). Net interest-bearing debt increased
and amounted to EUR 764.4 million at the end of June (3/2013: EUR 677.7
million, non-IFRS).

Net financial expenses decreased in January-June compared to the previous year
and amounted to EUR 4.8 million (1-6/2012: EUR 6.7 million), or 0.5 percent
(1-6/2012: 0.7%) of the Group's revenue. The decrease in net financial expenses
was due to an increase in the fair value of interest rate hedges outside hedge
accounting, decreased market interest rates and increased capitalisation of
interest expenses. The net financial expenses include EUR 9.0 million of
capitalisations of interest expenses in compliance with IAS 23 (1-6/2012: EUR
7.9 million). The exchange rate differences included in the net financial
expenses, totalling EUR -2.3 million (1-6/2012: EUR -2.4 million), were
comprised almost entirely of the costs of hedging debt investments in Russia.

The hedged ruble exposure increased slightly from the end of March 2013. At the
end of June 2013, EUR 131.9 million of the capital invested in Russia was
comprised of debt investments (3/2013: EUR 125.4 million, non-IFRS) and EUR
434.0 million was equity investments or similar fixed net investments (3/2013:
EUR 475.0 million, non-IFRS). 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.

Borrowings increased and amounted to EUR 814.1 million at the end of June
(3/2013: EUR 741.6 million, non-IFRS), and the average interest rate was 2.9
percent. Fixed-rate loans accounted for approximately 66 percent of the Group's
borrowings. Of the loans, approximately 48 percent had been raised directly
from the capital and money markets, approximately 39 percent from banks and
other financial institutions and approximately 13 percent from insurance
companies. The maturity distribution of long-term loans was balanced and a
total of EUR 20.0 million of long-term loans will mature in 2013.

The total amount of construction-stage contract receivables sold to financial
institutions decreased from the end of March 2013, amounting to EUR 222.8
million at the end of June (3/2013: EUR 253.0 million). Of this amount, EUR
182.6 million is included in current borrowings on the balance sheet (3/2013:
EUR 163.6 million) and the remainder comprises off-balance sheet items in
accordance with IAS 39. Interest expenses on receivables sold to financial
companies amounted to EUR 1.5 million during the review period (1-6/2012: EUR
2.6 million) and these are fully included in the financial expenses.

Participations in the housing corporation loans of unsold completed residential
units amounted to EUR 93.3 million at the end of June (3/2013: EUR 79.5
million), and they are included in current borrowings. The interest on the
participation is included in housing corporation charges and is thus booked in
project expenses. Interest on the participation amounted to EUR 1.3 million in
the review period (1-6/2012: EUR 1.0 million).

During the first quarter, YIT Corporation paid dividends of EUR 94.0 million
for 2012 in compliance with the resolution of the Annual General Meeting.

The Group's financial position enables the implementation of YIT's strategy and
the investments it requires. The Group has prepared for macroeconomic
uncertainty by diversifying the sources of financing and maintaining a strong
liquidity position.

RESOLUTIONS PASSED AT THE ANNUAL GENERAL MEETING

YIT Corporation's Annual General Meeting was held on March 15, 2013. The Annual
General Meeting adopted the 2012 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 (EUR 0.75 per share),
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, Satu Huber,
Erkki Järvinen, Ari Lehtoranta and Michael Rosenlew were re-elected as Board
members.

At its organisational meeting on March 15, 2013, the Board elected the chairmen
and members of the Audit Committee, Personnel Committee as well as the Working
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
15.03.13. The stock exchange releases and a presentation of the members of the
Board of Directors are available at YIT's website: www.yitgroup.com.

RESOLUTIONS PASSED AT THE EXTRAORDINARY GENERAL MEETING

YIT Corporation's Extraordinary General Meeting held on June 17, 2013, approved
the demerger plan and decided on the partial demerger of YIT in accordance with
the demerger plan. According to the demerger plan, YIT demerged so that all
of the assets, liabilities and responsibilities related to YIT's Building
Services business were transferred to Caverion, a new company established in
the demerger. YIT's Construction Services business remained with YIT. Following
the implementation of the demerger, Caverion Corporation is an independent
public limited company, separate from YIT Corporation. The registration date of
the implementation of the demerger was June 30, 2013.

The Extraordinary General Meeting resolved to elect a Chairman, Vice Chairman
and three (3) ordinary members to the Board of Directors of Caverion, namely:
Henrik Ehrnrooth as the Chairman of the Board of Directors, Michael Rosenlew as
the Vice Chairman and Anna Hyvönen, Ari Lehtoranta and Eva Lindqvist as members
of the Board of Directors. The Board of Directors' term expires at the end of
the Annual General Meeting of Caverion that next follows the meeting at which
they were elected.

PricewaterhouseCoopers, Authorized Public Accountants, was elected as
Caverion's auditor. PricewaterhouseCoopers has nominated Heikki Lassila,
Authorized Public Accountant, as responsible auditor. The auditor's fees will
be paid against the invoices approved by Caverion. The auditor's term expires
at the end of the Annual General Meeting of Caverion that next follows the
meeting at which it was elected.

The General Meeting authorised the Board of Directors of Caverion to decide on
the repurchase of own shares of Caverion in accordance with the proposal by the
Board of Directors. The authorisation covers the purchasing of a maximum of
12,500,000 company shares using the funds from the company's unrestricted
equity. The shares are not to be purchased in proportion to the shareholders'
holdings. The shares will be purchased in public trading on NASDAQ OMX Helsinki
Ltd, and the shares will be purchased at their market value in public trading
on NASDAQ OMX Helsinki Ltd at the time of purchase.

The General Meeting authorised the Board of Directors of Caverion to decide on
share issues in accordance with the proposal by the Board of Directors. The
authorisation may be used in full or in part by issuing shares in Caverion in
one or more issues so that the maximum number of shares issued is a total of
25,000,000 shares.

Ari Lehtoranta and Michael Rosenlew announced that they will resign from YIT's
Board of Directors provided that they are elected to the board of Caverion and
that the implementation of the partial demerger of YIT will be registered. The
number of members of YIT's Board was confirmed as three (3) members in addition
to a Chairman and a Vice Chairman. Furthermore, the General Meeting decided
that no new members are elected to replace the resigning members, i.e. YIT's
Board of Directors consists of Henrik Ehrnrooth as Chairman, Reino Hanhinen as
Vice Chairman and Kim Gran, Satu Huber and Erkki Järvinen as members.

Members of YIT's Board of Directors as of July 1, 2013, are Henrik Ehrnrooth as
Chairman, Reino Hanhinen as Vice Chairman and Kim Gran, Satu Huber and Erkki
Järvinen as members. YIT's Board of Directors decided on its committees in its
meeting on June 17, 2013. From among its members, the Board elected Satu Huber
as chairman of the Audit Committee and Reino Hanhinen and Erkki Järvinen as
members. The Personnel Committee will continue at its current composition:
Henrik Ehrnrooth as chairman and Kim Gran and Reino Hanhinen as members. The
Board decided to discontinue the Working Committee.

In accordance with the proposal of its Personnel Committee, YIT Corporation's
Board of Directors decided to appoint Kari Kauniskangas as the President and
CEO of YIT Corporation as of July 1, 2013, and Tero Kiviniemi as the Deputy
CEO. Furthermore, the following persons were appointed as members of YIT
Corporation's Management Board: Timo Lehtinen, CFO; Pii Raulo, HR; Juhani
Nummi, business development; and Division Directors: Harri Isoviita, Matti
Koskela, Timo Lehmus, Jouni Forsman, Tom Sandvik, Teemu Helppolainen, Mikhail
Voziyanov and Yuri Belomestnov.

YIT Corporation's demerger registered with the Finnish Trade Register

The implementation of the partial demerger was registered with the Finnish
Trade Register on June 30, 2013. YIT's shareholders have received as demerger
consideration one (1) share in Caverion for each share owned in YIT. No
demerger consideration was distributed to any treasury shares held by YIT. The
number of shares given as demerger consideration was 125,596,092. The
implementation of the demerger does not have effects on the listing of YIT
shares on NASDAQ OMX Helsinki Ltd.

Demerger-related information is available in the Investors section of YIT's
website at www.yitgroup.com/Investors/demerger.

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 2013 (2012: EUR 149,216,748.22), and the
number of shares outstanding was 127,223,422 (2013: 127,223,422).

Treasury shares and authorisations of the Board of Directors

In accordance with the Limited Liability Companies Act, the Annual 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 15, 2013, to authorise the Board of
Directors to purchase the company's shares as proposed by the Board of
Directors. In addition to this, the Board of Directors maintains a valid share
issue authorisation issued by YIT's Annual General Meeting on March 10, 2010.
The authorisation is valid for five years after its granting. The share issue
authorisation also includes an authorisation to decide on the conveyance of
treasury shares.

YIT Corporation held 1,843,303 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. During the review period, the company conveyed 224,743
shares without consideration to the key persons participating in the Share
Ownership Plan under the authorisation granted by the Annual General Meeting to
the Board of Directors on March 10, 2010. During the review period, 8,770
shares were returned to the company in accordance with the terms and conditions
of the share-based incentive scheme, after which the company held 1,627,330
treasury shares at the end of June 2013.

Trading in shares

The price of YIT's share was EUR 15.08 at the beginning of the year (January 1,
2012: EUR 12.38). The closing price of the share on the last trading day of the
review period on June 28, 2013, was EUR 13.19 (June 29, 2012: EUR 13.38). The
share price decreased by approximately 13 percent during January-June. The
highest price of the share during the review period was EUR 17.88 (1-6/2012:
EUR 17.25), the lowest was EUR 12.81 (1-6/2012: EUR 11.87) and the average
price was EUR 15.75 (1-6/2012: EUR 14.95). Share turnover on Nasdaq OMX in
January-June amounted to 49,375 thousand shares (1-6/2012: 61,906 thousand).
The value of turnover was EUR 777.8 million (1-6:2012: EUR 925.8 million),
source: Nasdaq OMX.

In addition to the Helsinki Stock Exchange, YIT's shares are also traded in
other market places, such as Chi-X, BATS and Turquoise. The share of trade
volume on alternative market places increased slightly compared to the previous
year during the review period. During January-June, 20,457 thousand YIT
Corporation shares changed hands in alternative market places (1-6/2012: 36,340
thousand), corresponding to approximately 40 percent of the total share trade
(1-6/2012: 37%). Of the alternative market places, YIT shares changed hands
particularly in Chi-X, source: Fidessa Fragmentation Index.

YIT Corporation's market capitalisation on the last trading day of the review
period on June 28, 2013, before the execution of the demerger, was EUR 1,656.6
million (6/2012: EUR 1,677.7 million). Market capitalisation has been
calculated excluding the shares held by the company.

Number of shareholders and flagging notifications

At the end of June 2013, the number of registered shareholders was 39,251
(6/2012: 35,888). At the end of June 2013, a total of 34.7 percent of the
shares were owned by nominee-registered and non-Finnish investors (6/2012:
35.1%).

During the review period, 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.

MOST SIGNIFICANT SHORT-TERM BUSINESS RISKS AND RISK MANAGEMENT

YIT classifies as risks those factors that might endanger the achievement of
the Group's strategic and financial targets if they should materialise. Risks
are divided into strategic, operational, financial and event risks. The
identification and management of risk factors takes into account the special
features of the business and operating environment. Risk management is an
integral part of the Group's management, monitoring and reporting systems. The
nature and probability of strategic risks is continuously monitored and
reported on. A strategic risk assessment is carried out at Group level once a
year in connection with the strategy review.

In accordance with the strategy of the continuing operations approved by the
Group on June 3, 2013, improving resistance to economic cycles and widening
financial operating space are key targets of YIT's business operations. In
connection with the ratification of the strategy, risk management was
highlighted as one of the key focus areas over the next years.

YIT is developing the Group's business structure to be balanced and resistant
of economic fluctuations. The Group operates in seven countries, and therefore
economic fluctuations impact operations at different times in different
countries and markets. However, following the partial demerger, the
geographical diversification has decreased. The business model has also been
developed so that the Construction Services business can operate independently
after the demerger. The Group's three business segments; residential, business
premises and infrastructure construction, balance each other and improve the
Group's resistance to economic fluctuations. Fluctuation in consumer demand for
housing in Finland can be balanced through investor deals of residential
projects, which contributes to decreasing the Group's exposure to fluctuations
in the housing market. The company aims at reacting to changes in the operating
environment in time and to utilise the new business opportunities provided by
them through continuous monitoring and analysis.

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, 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. Changes in the availability of housing loans and real estate financing
are key risks related to the demand for residential units.

No write-offs were made to plots in the review period. 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.

Financial risks include risks related to the sufficiency of financing, currency
and interest rates, credit and counterparty risks and risks related to the
reporting process. Financial risks are managed through accounting and financing
policies as well as internal and external auditing.

Approximately 75 percent of the revenue of YIT during the review period was
derived from euro countries. The Russian ruble is one of the Group's keycurrencies, and its significance will increase following the demerger. The
Group's most significant currency risk is related to investments denominated in
rubles. Capital invested in Russia totalled EUR 565.9 million at the end of the
period (3/2013: EUR 600.4 million, non-IFRS). The amount of equity or
equivalent net investments at the end of the period came to EUR 434.0 million
(3/2013: EUR 475.0 million, non-IFRS). The equity investments in the Russian
subsidiaries are unhedged in accordance with the treasury policy, and a
potential weakening of the ruble would have an equal negative impact on the
Group's shareholders' equity. Debt investments amounted to EUR 131.9 million at
the end of the period (3/2013: EUR 125.4 million, non-IFRS), 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 as well as sudden and unforeseen material damage to premises, project
sites and other property resulting, for example, from fire, collapse or 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 has been published in the Annual Report 2012. Financing risks
are described in more detail in the notes to the Financial Statements for 2012.

OUTLOOK FOR 2013

GUIDANCE: YIT estimates the revenue and operating profit of the Group's
continuing operations based on segment reporting for 2013 to remain at the
level of 2012, excluding non-recurring items.

Increased uncertainty about general macroeconomic development is impacting
YIT's business operations and customers.

Construction Services Finland

With regard to Construction Services Finland, long-term residential demand
continues to be supported by migration to growth centres. Furthermore, the
population and the number of households will increase with continued migration
and the increasing number of one-person households. However, the short-term
risks of the housing market have increased due to macroeconomic uncertainty.

According to Euroconstruct's June 2013 estimate, the construction of 27,000
residential units will start in Finland during 2013. According to a report
published by VTT in January 2012, the annual need for the production of new
residential units amounts to 24,000-29,000 residential units over the long
term. YIT's goal is to strengthen its position as the leading housing developer
in Finland.

YIT estimates that housing prices will remain stable in 2013. Construction
costs are estimated to increase, mainly due to new energy regulations, but the
increase is expected to be moderate in 2013.

With regard to the construction of business premises, real estate investors are
still cautious due to the general economic situation, and in order to control
risks the Helsinki metropolitan area and good tenants are appreciated. The low
level of long-term interest rates increases investors' interest in high-yield
properties. According to Euroconstruct's June 2013 estimate, construction of
office buildings will decrease by approximately 17 percent in Finland during
2013. Vacancy rates for offices are still high, with vacant building stock also
including relatively old office premises in poor condition. YIT estimates that
the demand will focus on modern and energy-efficient offices. YIT estimates
that the renovation of business premises will grow in 2013.

According to Euroconstruct's June 2013 estimate, commercial construction will
decrease by approximately 12 percent in Finland during 2013. The shift of the
retail trade towards ever larger business properties and the expansion of
foreign retail chains in Finland will support construction activity. Vacancy
rates for commercial premises are quite low.

The infrastructure construction market is expected to remain stable and at the
same level as in 2012 (Euroconstruct, June 2013). Rail and metro construction
will continue to increase in 2013, and several major road projects will be
underway in 2013-2014. The market situation for rock construction is expected
to remain favourable, with the focus shifting from excavation to interiors and
engineering. The road maintenance market is estimated to remain stable.

International Construction Services

The volume of residential construction is estimated to increase in Russia in
2013. However, growth is expected to slow down slightly compared to the
previous year.

Moscow, the Moscow region and St. Petersburg make up the largest residential
markets in Russia: these areas account for approximately one-fifth of all
residential construction. Residential demand has been supported by the
reasonably good economic development in Russia, good consumer confidence, low
unemployment rates and favourable development in the housing loan market, even
though mortgage interest rates have increased. The increase in interest rates
is estimated to continue in 2013, and forecasts of economic growth in Russia
have been lowered recently. In addition, the price of oil, which is a key
factor for the development of the Russian economy, and the exchange rate
between the euro and ruble have recently fluctuated more strongly than before.

The future outlook for Russian residential construction is good. Living space
per person is still clearly lower than in Western Europe and housing is in poor
condition, which creates the need for new, high-quality housing. Furthermore,
the middle class is expected to grow in proportion to the population and the
number of household-dwelling units is expected to increase. The development of
the housing loan market in Russia has also contributed to the expansion of the
potential buyer base. YIT has promoted the availability of loans to consumers
through extensive cooperation with banks. YIT expects housing prices to
increase in Russia in 2013, but at clearly less rate than in 2012.

The volume of business premises construction is expected to grow moderately in
2013 according to VTT's statistics. YIT's largest individual market is St.
Petersburg, where YIT will continue the marketing and sales of the Gorelovo
industrial park.

In the Baltic countries, residential demand has still been supported by
improved consumer confidence and the employment situation as well as
accelerated economic growth. Latvia joining the euro is expected to strengthen
the country's economic development. Housing prices have also increased
slightly. Residential construction is expected to remain at the level of the
previous year in the Czech Republic and Slovakia in 2013. Economic growth has
come to a standstill and the country has increased the value added tax on
housing sales as of the beginning of 2013. In Slovakia, the housing market is
supported by the stable price level of housing, moderate economic growth and
interest rates remaining low. Growing unemployment is a risk.

Full interim report including tables is as an appendix to this release.

Attachments:

YIT_Interim Report Jan-Jun 2013.pdf