YIT - Company Announcement

Presentation of YIT’s President and CEO at the capital markets day: aiming for well-managed profitable growth

Helsinki, Finland, 2013-09-19 06:00 CEST (GLOBE NEWSWIRE) -- YIT Corporation   
                 STOCK EXCHANGE RELEASE                      Sept 19. 2013 at 7
a.m. 



PRESENTATION OF YIT'S PRESIDENT AND CEO AT THE CAPITAL MARKETS DAY: AIMING FOR
WELL-MANAGED PROFITABLE GROWTH 



YIT is organising a Capital Markets Day to present the company strategy for
investors and analysts in Moscow today, September 19, 2013. YIT will also
comment on its recent development in Russia, housing, business premises and
infra services. 



The main goal in YIT's strategy is to achieve well-managed profitable growth.
This is pursued through the Group's own-developed projects in all businesses
and all current geographical regions (Finland, Russia, the Baltic countries and
Central Eastern Europe). Stronger growth is sought particularly in emerging
markets and residential construction. Further focus areas include improving the
company's ability to manage cyclicality, widening financial operating space and
accelerating renewal. 



In June, the Board of Directors confirmed the following strategic long-term
targets for the Group: 



  -- 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 40 percent 
  -- Dividend payout ratio of 40-60 percent of net profit for the periodThe 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. 



Kari Kauniskangas, President and CEO



“After the demerger, which was completed by the end of June, YIT Group has
focused on construction and business development. This summer and autumn, YIT
has been successfully implementing the strategy confirmed in the spring.
Winning the Central Pasila centre development contract in Helsinki, along with
projects totaling approximately one billion euros in value, will offer us
significant business volume in Finland from 2015 onwards. 



In St. Petersburg, we have obtained the building permit and made the decision
to start construction of the Smolny apartment complex in the city centre. The
sales value of the currently launched second phase of the project is
approximately EUR 130 million. In addition, YIT has obtained acceptance for the
city plan of its Novo Orlovski project in St. Petersburg, and the first phase
of the project will be initiated this winter. In total, approximately 10,000
new apartments will be constructed in the area. These projects, which span
several years, add up to nearly EUR 1.5 billion in value. During the fall, we
are also planning to start the construction of our first residential project in
Tyumen, Russia. 



During the summer and autumn, macroeconomic uncertainty  has been reflected in
the operations and decision-making of YIT and its customers. In Finland,
apartment sales have risen to the normal level at the beginning of the autumn,
but sales of detached and terraced houses have remained at a low level compared
to YIT's supply. As a result, we have lowered our residential sales estimate
for the remainder of this year. In Finnish residential construction, we will
put additional focus on investor deals in addition to consumers. We estimate
that YIT will sell a total of around 600 apartments in the third quarter of
2013. 



In Russia, the residential sales have remained fairly brisk in all of YIT's
units, but the more conservative economic forecasts and the increased supply of
apartments in some of YIT's operating cities have prevented us from
implementing the targeted price increases. In the third quarter of 2013, we
estimate that YIT will sell around 1,300 apartments in Russia, the Baltic
countries and the Central Eastern Europe. Housing prices are expected to remain
stable in all of YIT's markets for the remainder of the year. We will continue
to release capital from slow-moving assets.” 



YIT's guidance for 2013



YIT Corporation estimates that the Group's revenue and operating profit will
decrease from the level of 2012, excluding non-recurring items. The guidance is
based on segment reporting, i.e. the percentage of completion method, and it
was revised on September 11, 2013. 



Capital Markets Day



The Capital Markets Day's programme starts today, September 19, 2013, at 8:30
a.m. local time; 7:30 a.m. Finnish time (EEST). The event starts with the
presentation of YIT's President and CEO, which can be followed live on YIT's
website at www.yitgroup.com/cmd2013webcast. During the President and CEO's
presentation, a teleconference is also available for investors and analysts on
the phone number 
+44 20 7153 9154 (PIN-code: 696002#).



Further information about the Capital Markets Day and YIT's strategy is
available on YIT's website at www.yitgroup.com/investors 



For further information, please contact:



Sanna Kaje, Vice President, Investor Relations, YIT Corporation, +358 50 390
6750 sanna.kaje@yit.fi 

Timo Lehtinen, Chief Financial Officer, YIT Corporation, +358 45 6700 626,
timo.lehtinen@yit.fi 





YIT CORPORATION



Sanna Kaje

Vice President, Investor Relations





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





YIT leads the way in the construction sector by creating more attractive and
sustainable urban environments in Finland, Russia, the Baltic countries, the
Czech Republic and Slovakia. YIT builds housing, business premises and
infrastructure, develops entire areas, and offers residential service concepts
for consumers. YIT has over 100 years of experience and a strong market
position: it is the largest residential construction company in Finland and the
most significant foreign residential construction company in Russia. YIT is
also one of the largest business premises and infrastructure construction
companies in Finland. YIT has more than 6,000 employees in seven countries. In
2012, the company's revenue was approximately EUR 2.0 billion. YIT's shares are
listed on NASDAQ OMX Helsinki. www.yitgroup.com