2013-04-26 07:00:03 CEST
2013-04-26 07:00:36 CEST
REGULATED INFORMATION
YIT - Interim report (Q1 and Q3)
YIT’S INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2013: Slow start for the year – partial demerger proceeding according to plan
Helsinki, Finland, 2013-04-26 07:00 CEST (GLOBE NEWSWIRE) --
YIT CORPORATION INTERIM REPORT April 26, 2013 at 8:00 a.m.
YIT'S INTERIM REPORT FOR JANUARY 1 - MARCH 31, 2013
Slow start for the year - partial demerger proceeding according to plan
-- The operating profit for the segments decreased by 27 percent in
January-March compared to the previous year, amounting to EUR 40.2 million
(1-3/2012: EUR 55.1 million). The operating profit for International
Construction Services increased compared to the previous year.
The operating profit for Building Services Northern Europe decreased
significantly.
-- The revenue for the segments for the first quarter decreased slightly
compared to the previous year, amounting to EUR 1,041.6 million (1-3/2012:
EUR 1,098.3 million). Revenue grew in International Construction Services
where the growth of revenue was supported by the high volume of residential
production and favourable residential sales in Russia.
-- The order backlog of the segments was on a par with the previous year,
amounting to EUR 3,956.2 million (3/2012: EUR 3,965.5 million). The order
backlog was at the same level as at the end of 2012.
-- The Group's profit before taxes based on segment reporting was 27 percent
lower than the year before in January-March, amounting to EUR 33.8 million
(1-3/2012: EUR 46.1 million).
-- The Group's earnings per share based on segment reporting decreased by 26
percent in January-March from the year before, amounting to EUR 0.20
(1-3/2012: EUR 0.27).
GUIDANCE: The Group revenue based on segment reporting for 2013 to remain at
the level of 2012 and operating profit to grow in 2013
YIT Corporation reiterates its estimate issued in connection with the financial
statements for 2012, according to which it estimates the Group revenue based on
segment reporting for 2013 to remain at the level of 2012 and operating profit
to grow in 2013.
The guidance does not take into account one-off costs relating to the planned
demerger.
Increased uncertainty about general macroeconomic development is impacting
YIT's business operations and customers.
Juhani Pitkäkoski, President and CEO: Order backlog strengthened clearly in
Building Services Central Europe
We are satisfied with the continued good development in Construction Services
during the first quarter. With regard to Construction Services Finland, the
change in asset transfer tax that took effect at the beginning of March
accelerated residential sales, especially in February. In Russia, residential
sales strengthened after the January holiday season. We responded to the
continued favourable demand by starting up the construction of more than 1,700
residential units in total during the first quarter.
In Building Services Northern Europe the revenue decreased during the first
quarter. As a result of prolonged uncertainty the customers have postponed
additional service and maintenance work further. Personnel cuts of 600
employees in Building Services Northern Europe are underway, and cost
adjustments will be continued further during 2013. We estimate the
profitability of Building Services Northern Europe to improve during the
current year. The strengthening of the order backlog of Building Services and
picking up of demand in Germany will contribute to the development during the
rest of the year.
Preparations for developing the Group's business towards a new strategic growth
phase have continued. Our aim is to demerge the Building Services business to a
separate group and continue the Construction Services business in the current
YIT Group. The preparation of the demerger has progressed according to plans,
and we aim to have Caverion, which will focus on building services, admitted
for public trading on the Helsinki Stock Exchange at the beginning of July.
KEY FIGURES
Development of the Group based on segment reporting (percentage of completion,
POC)
Revenue, EUR million 1-3/13 1-3/12 Change
-------------------------------------------------------------
Building Services Northern Europe 468.6 513.1 -9%
-------------------------------------------------------------
Building Services Central Europe 139.2 159.4 -13%
-------------------------------------------------------------
Construction Services Finland 326.0 329.5 -1%
-------------------------------------------------------------
International Construction Services 119.0 107.9 10%
-------------------------------------------------------------
Other items -11.3 -11.6
-------------------------------------------------------------
Group, total 1,041.6 1,098.3 -5%
-------------------------------------------------------------
Operating profit, EUR million 1-3/13 1-3/12 Change
-----------------------------------------------------------
Building Services Northern Europe 2.2 14.5 -85%
-----------------------------------------------------------
Building Services Central Europe 3.4 5.2 -34%
-----------------------------------------------------------
Construction Services Finland 26.5 31.4 -16%
-----------------------------------------------------------
International Construction Services 11.6 9.7 20%
-----------------------------------------------------------
Other items -3.5 -5.7
-----------------------------------------------------------
Group, total 40.2 55.1 -27%
-----------------------------------------------------------
Operating profit margin, % 1-3/13 1-3/12
---------------------------------------------------
Building Services Northern Europe 0.5 2.8
---------------------------------------------------
Building Services Central Europe 2.5 3.3
---------------------------------------------------
Construction Services Finland 8.1 9.5
---------------------------------------------------
International Construction Services 9.8 9.0
---------------------------------------------------
Group, total 3.9 5.0
---------------------------------------------------
Order backlog, EUR million 3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Building Services Northern 844.7 969.4 -13% 844.7 819.0 3%
Europe
--------------------------------------------------------------------------------
Building Services Central 470.5 500.5 -6% 470.5 380.1 24%
Europe
--------------------------------------------------------------------------------
Construction Services 1,424.9 1,428.0 0% 1,424.9 1,499.0 -5%
Finland
--------------------------------------------------------------------------------
International Construction 1,285.3 1,142.9 12% 1,285.3 1,266.1 2%
Services
--------------------------------------------------------------------------------
Other items -69.1 -75.3 -69.1 -62.8
--------------------------------------------------------------------------------
Group, total 3,956.2 3,965.5 0% 3,956.2 3,901.5 1%
--------------------------------------------------------------------------------
Key ratios of segment reporting (percentage of completion, POC)
1-3/13 1-3/12 Change
--------------------------------------------------------------------------
Profit before taxes, EUR million 33.8 46.1 -27%
--------------------------------------------------------------------------
Profit for the review period, EUR million 1) 25.6 33.9 -25%
--------------------------------------------------------------------------
Earnings/share, EUR 0.20 0.27 -26%
--------------------------------------------------------------------------
Operating cash flow after investments, EUR million -7.5 -9.0
--------------------------------------------------------------------------
Personnel at the end of period 24,923 25,703 -3%
--------------------------------------------------------------------------
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, April 26,
2013, at 10:00 a.m. (Finnish Time, EEST). The news conference will be held in
English at YIT's head office at Panuntie 11, 00620 Helsinki, Finland. The event
is intended for analysts, portfolio managers and the media.
The news conference and the presentation, given by the company's President and
CEO, Juhani Pitkäkoski, can be viewed live on YIT's website at
www.yitgroup.com/webcast. The live webcast will start at 10:00 a.m. (Finnish
time, EEST). A recording of the webcast will be available at the same address
starting at approximately 12:00 noon (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)20 7162 0077 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: 930771. 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 12:00
(Helsinki)
--------------------------------------------------------------------------------
CEST (Paris, 7:00 9:00 11:00
Stockholm)
--------------------------------------------------------------------------------
BST (London) 6:00 8:00 10:00
--------------------------------------------------------------------------------
US EDT (New 1:00 3:00 5:00
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 2257.
YIT Corporation
Juhani Pitkäkoski
President and CEO
For further information, please contact:
Timo Lehtinen, Chief Financial Officer, YIT Corporation, tel. +358 45 670 0626,
timo.lehtinen@yit.fi
Hanna-Maria Heikkinen, Vice President, Investor Relations, YIT Corporation,
tel. +358 40 826 2172, hanna-maria.heikkinen@yit.fi
Distribution: NASDAQ OMX Helsinki, principal media, www.yitgroup.com
INTERIM REPORT JANUARY 1 - MARCH 31, 2013
CONTENTS
-- Group financial development based on segment reporting
-- Development by business segment
-- Personnel
-- Strategic objectives
-- Progress of the partial demerger
-- Group financial development based on Group reporting (IFRS, IFRIC 15)
-- Resolutions passed at the Annual General Meeting
-- Shares and shareholders
-- Most significant short-term business risks and risk management
-- More extensive and balanced reporting as part of corporate responsibility
-- 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 alsoreports 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.
Revenue of business segments decreased slightly compared to the previous year
Revenue, EUR million 1-3/13 1-3/12 Change
-------------------------------------------------------------
Building Services Northern Europe 468.6 513.1 -9%
-------------------------------------------------------------
Building Services Central Europe 139.2 159.4 -13%
-------------------------------------------------------------
Construction Services Finland 326.0 329.5 -1%
-------------------------------------------------------------
International Construction Services 119.0 107.9 10%
-------------------------------------------------------------
Other items -11.3 -11.6
-------------------------------------------------------------
Group, total 1,041.6 1,098.3 -5%
-------------------------------------------------------------
The revenue of YIT's segments for the first quarter decreased slightly compared
to the previous year, amounting to EUR 1,041.6 million (1-3/2012: EUR 1,098.3
million). Revenue 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 increased the
segments' revenue for January-March by EUR 7.8 million compared to the previous
year.
In January-March, Finland accounted for 43 percent (1-3/2012: 42%) of the
Group's revenue according to segment reporting, Sweden for 16 percent
(1-3/2012: 16%), Norway for 13 percent (1-3/2012: 13%), Germany for 10 percent
(1-3/2012: 11%), Russia for 10 percent (1-3/2012: 8%), Denmark for 3 percent
(1-3/2012: 3%), Austria for 3 percent (1-3/2012: 3%) and the Baltic countries
for 2 percent (1-3/2012: 2%).
Operating profit of the segments decreased clearly
Operating profit, EUR million 1-3/13 1-3/12 Change
-----------------------------------------------------------
Building Services Northern Europe 2.2 14.5 -85%
-----------------------------------------------------------
Building Services Central Europe 3.4 5.2 -34%
-----------------------------------------------------------
Construction Services Finland 26.5 31.4 -16%
-----------------------------------------------------------
International Construction Services 11.6 9.7 20%
-----------------------------------------------------------
Other items -3.5 -5.7
-----------------------------------------------------------
Group, total 40.2 55.1 -27%
-----------------------------------------------------------
Operating profit margin, % 1-3/13 1-3/12
---------------------------------------------------
Building Services Northern Europe 0.5 2.8
---------------------------------------------------
Building Services Central Europe 2.5 3.3
---------------------------------------------------
Construction Services Finland 8.1 9.5
---------------------------------------------------
International Construction Services 9.8 9.0
---------------------------------------------------
Group, total 3.9 5.0
---------------------------------------------------
YIT's operating profit based on segment reporting decreased by 27 percent
compared to the previous year, amounting to EUR 40.2 million in January-March
(1-3/2012: EUR 55.1 million). The operating profit margin based on segment
reporting was 3.9 percent (1-3/2012: 5.0%). 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, 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.
The operating profit for International Construction Services increased compared
to the previous year. In Construction Services Finland, operating profit
decreased on the previous year. Operating profit decreased significantly in
Building Services Northern Europe as the customers postponed additional service
and maintenance work further as a result of prolonged uncertainty. In Building
Services Northern Europe, the weak profitability of the project business and
tight price competition and low business volume, typical of the first quarter,
contributed to the decrease in operating profit. In addition, adjustment
expenses of approximately EUR 2.8 million burdened the operating profit of the
segment. In Building Services Central Europe the operating profit decreased
clearly.
The depreciations booked by YIT amounted to EUR 10.3 million euros during the
review period (1-3/2012: EUR 10.9 million).
Order backlog remained strong
Order backlog, EUR million 3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Building Services Northern 844.7 969.4 -13% 844.7 819.0 3%
Europe
--------------------------------------------------------------------------------
Building Services Central 470.5 500.5 -6% 470.5 380.1 24%
Europe
--------------------------------------------------------------------------------
Construction Services 1,424.9 1,428.0 0% 1,424.9 1,499.0 -5%
Finland
--------------------------------------------------------------------------------
International Construction 1,285.3 1,142.9 12% 1,285.3 1,266.1 2%
Services
--------------------------------------------------------------------------------
Other items -69.1 -75.3 -69.1 -62.8
--------------------------------------------------------------------------------
Group, total 3,956.2 3,965.5 0% 3,956.2 3,901.5 1%
--------------------------------------------------------------------------------
The order backlog of YIT's segments was EUR 3,956.2 million at the end of March
(3/2012: EUR 3,965.5 million), on a par with the previous year and the end of
2012, at which time it stood at EUR 3,901.5 million.
The order backlog of Building Services Northern Europe decreased compared to
the previous year as the result of a weaker market situation. In addition, the
order backlog of Building Services Central Europe decreased compared to the
previous year, yet it increased by 24 percent compared to last December due to
strengthened demand in Germany and Austria. The order backlog of International
Construction Services grew compared to the previous year as a result of
residential start-ups.
Capital expenditure and acquisitions
Gross capital expenditure on non-current assets included on the balance sheet
totalled EUR 9.6 million (1-3/2012: EUR 13.6 million) during January-March,
representing 0.9 percent (1-3/2012: 1.2%) of revenue. Investments in
construction equipment amounted to EUR 1.0 million (1-3/2012: EUR 2.8 million)
and investments in information technology to EUR 1.6 million (1-3/2012: EUR 2.5
million).
YIT made no acquisitions during the review period. YIT has increased its
holding in YIT Moskovia by 5.92 percentage points and now holds all of the
shares in the company.
Strong cash flow in Building Services Northern Europe
The Group's operating cash flow after investments for January-March amounted to
EUR -7.5 million (1-3/2012: EUR -9.0 million). The cash flow was strong in
Building Services Northern Europe. Building Services Central Europe's cash flow
for the first quarter remained weak because YIT did not receive any significant
advance payments from its customers. Residential sales supported the cash flow
in Construction Services Finland during the first quarter. In Russia, the sales
inventory of apartments and plot investments increased.
The return on investment based on segment reporting amounted to 13.7 percent
for the last 12 months (1-12/2012: 14.4%). At the end of March, the Group's
invested capital based on segment reporting amounted to EUR 1,894.4 million
(12/2012: EUR 1,916.9 million). Invested capital is calculated by deducting
non-interest bearing liabilities from the balance sheet total.
Profit before taxes decreased
Profit before taxes based on segment reporting decreased by 27 percent compared
to the previous year, amounting to EUR 33.8 million in January-March (1-3/2012:
EUR 46.1 million).
Earnings per share based on segment reporting decreased by 26 percent in
January-March from the year before, amounting to EUR 0.20 (1-3/2012: EUR 0.27).
The effective tax rate of the Group based on segment reporting was 24.2 percent
during the review period (1-12/2011: 24.3%).
DEVELOPMENT BY BUSINESS SEGMENT
Development by business segment is presented using figures compliant with
segment reporting.
BUILDING SERVICES NORTHERN EUROPE
1-3/13 1-3/12 Change
-----------------------------------------------------
Revenue, EUR million 468.6 513.1 -9%
-----------------------------------------------------
Operating profit, EUR million 2.2 14.5 -85%
-----------------------------------------------------
Operating profit margin, % 0.5 2.8
-----------------------------------------------------
4/12-3/13 1-12/12
------------------------------------------------------------------------------
Return on operative invested capital (last 12 months), %1) 9.0 11.0
------------------------------------------------------------------------------
3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Operative invested capital, EUR 321.5 327.8 -2% 321.5 344.8 -7%
million
--------------------------------------------------------------------------------
Order backlog, EUR million 844.7 969.4 -13% 844.7 819.0 3%
--------------------------------------------------------------------------------
Revenue, EUR million 1-3/13 1-3/12 Change
-------------------------------------------------------
Sweden 126.4 142.2 -11%
-------------------------------------------------------
Finland 165.2 178.5 -7%
-------------------------------------------------------
Norway 133.6 147.1 -9%
-------------------------------------------------------
Denmark 31.1 34.0 -9%
-------------------------------------------------------
Russia and the Baltic countries 12.3 11.2 10%
-------------------------------------------------------
Total 468.6 513.1 -9%
-------------------------------------------------------
1) In the comparison figures the impact of IAS 19 and adjustments of internal
items have been taken into account.
The revenue for Building Services Northern Europe decreased in January-March
compared to the previous year, amounting to EUR 468.6 million (1-3/2012: EUR
513.1 million). Changes in foreign exchange rates increased the revenue for the
review period by EUR 9.3 million compared to the previous year.
The segment's operating profit for the review period decreased by 85 percent
from the previous year to EUR 2.2 million (1-3/2012: EUR 14.5 million).
Customers postponed additional service and maintenance work, and as a result,
the utility rate of operations was too low.
In Building Services Northern Europe, cost adjustments will continue in 2013
and profitability is expected to improve compared to the previous year. The
restructuring of operations proceeded during the review period in all countries
where Building Services Northern Europe operates. The aim is to decrease the
number of personnel by 600 employees in 2013; of these, personnel cuts
amounting to approximately 200 employees were carried out during the first
quarter, which resulted in adjustment costs of approximately EUR 2.8 million.
The effects of the implemented cost-savings are expected to be shown as
improved profitability during the rest of the year. The additional service and
maintenance work postponed by customers since the fourth quarter of 2012 is
expected to result in increasing demand, which is also estimated to contribute
to the favourable development of revenue and profitability during the rest of
the year.
The order backlog at the end of March decreased by 13 percent on the previous
year, amounting to EUR 844.7 million (3/2012: EUR 969.4 million). The order
backlog increased slightly from the end of December (12/2012: EUR 819.0
million).
New orders in the project business
During the first quarter, YIT started electrical and tele technical
installations in the new Fornebuporten project outside Oslo in Norway. The
value of the contract is approximately EUR 19 million over the next three
years.
An agreement on all technical installations of a new court house during the
construction phase as well as a maintenance agreement for the next 25 years was
signed in Viborg, Denmark. The value of the contract is approximately EUR 17.5
million.
In the future, YIT will aim to increase the share of service and maintenance
business as well as strengthen its position, particularly in large Design &
Build projects, in Building Services Northern Europe.
Revenue of service and maintenance operations decreased
YIT aims to be the leading provider of energy-efficient technical systems,
solutions and life-cycle services in the Nordic countries and in Central
Europe. The target is to increase service and maintenance operations at a
faster rate than other operations.
The revenue of service and maintenance operations decreased by 11 percent and
their share of the segment revenue for January-March was EUR 291.3 million
(1-3/2012: EUR 328.1 million), or 62 percent of the segment's total revenue in
January-March (1-3/2012: 64%).
A service agreement between YIT Kiinteistötekniikka and Fläkt Woods on the
efficiency improvements and turnkey execution with regard to the maintenance
and service operations of production machinery, equipment and buildings at the
Turku, Toijala and Kihniö plants took effect in February. The Contract includes
outsourcing and transfer of business. According to the contract, the production
maintenance personnel of Fläkt Woods' Turku and Kihniö plants were transferred
to YIT Kiinteistötekniikka Oy as continuing employees. As for the Toijala
plant, the operations were transferred to YIT from another service provider. In
addition, the signed contract also included a ServiFlex service agreement on
comprehensive production and building maintenance. The initial term of the
agreement is two years, after which it will continue until further notice.
In Russia, YIT has signed several service agreements with the Castorama chain,
British Petroleum Plc and World Class Fitness, among others. The total value of
these agreements is over EUR 5 million.
Number of energy efficiency projects is increasing
In Finland YIT signed an agreement on an ESCO project aiming for energy savings
with the municipality of Siilinjärvi during the first quarter. The project
comprises the modernisation of building automation and heating and ventilation
equipment in nine properties. The investments will be implemented during 2013.
The ESCO service agreement can be extended for ten years. The total value of
the project is EUR 1.1 million.
BUILDING SERVICES CENTRAL EUROPE
1-3/13 1-3/12 Change
-----------------------------------------------------
Revenue, EUR million 139.2 159.4 -13%
-----------------------------------------------------
Operating profit, EUR million 3.4 5.2 -34%
-----------------------------------------------------
Operating profit margin, % 2.5 3.3
-----------------------------------------------------
4/12-3/13 1-12/12
----------------------------------------------------------------------------
Return on operative invested capital (last 12 months), % 23.3 32.5
----------------------------------------------------------------------------
3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Operative invested capital, EUR 118.8 97.0 22% 118.8 96.6 23%
million
--------------------------------------------------------------------------------
Order backlog, EUR million 470.5 500.5 -6% 470.5 380.1 24%
--------------------------------------------------------------------------------
Revenue, EUR million 1-3/13 1-3/12 Change
----------------------------------------------------------------------
Germany 100.9 124.7 -19%
----------------------------------------------------------------------
Austria 35.9 30.0 19%
----------------------------------------------------------------------
Poland, the Czech Republic and other countries 2.5 4.7 -47%
----------------------------------------------------------------------
Total 139.2 159.4 -13%
----------------------------------------------------------------------
The revenue of Building Services Central Europe decreased by 13 percent in
January-March compared to the previous year, amounting to EUR 139.2 million
(1-3/2012: EUR 159.4 million). The decrease in revenue during the review period
was due to weakening demand, especially in the market for large projects in
Germany during the latter half of 2012 and the low level of activity in Central
Eastern Europe. Revenue continued to increase in Austria during the review
period and amounted to EUR 35.9 million (1-3/2012: EUR 30.0 million).
The operating profit for January-March decreased clearly compared to the
previous year, mainly due to the lower volume of German operations, and
amounted to EUR 3.4 million (1-3/2012: EUR 5.2 million).
Demand in the Central European building systems market strengthened during the
first quarter compared to the end of the previous year. The order backlog at
the end of March increased by 24 percent from the end of December 2012
(12/2012: EUR 380.1 million) but decreased by 6 percent from the year before.
The order backlog amounted to EUR 470.5 million at the end of March (3/2012:
EUR 500.5 million).
Service and maintenance revenue is growing
Service and maintenance operations generated EUR 48.6 million (1-3/2012: EUR
45.6 million), or 35 percent of the segment's total revenue in January-March
(1-3/2012: 29%). The share of service and maintenance was still significantly
lower in Building Services Central Europe (1-3/2013: 35%) than in Building
Services Northern Europe (1-3/2013: 62%), and therefore the opportunities for
increasing it in Building Services Central Europe are good. The volume of
service and maintenance was already increasing, and it generated 7 percent more
turnover during the first quarter than the corresponding period the previous
year.
During the first quarter, YIT signed new, minor service and maintenance
agreements and several long-term agreements were renewed and extended, such as
the agreement on the delivery of technical and infrastructural facility
management for 2013 and maintenance of all building systems for TOTAL
Raffinerie Mitteldeutschland in Germany.
Recovery in the German project market
Decision-making in Germany and Austria on new investments is still slow, but
positive signs can be seen.
YIT secured several significant projects during the first quarter. Among
others, YIT received a contract worth over EUR 35 million for the expansion of
the terminal at the Franz-Josef Strauss International Airport in Munich,
Germany. The project covers heating and cooling systems, sanitation and fire
extinguishing technology, and electrical engineering. YIT's individually
developed construction process and implementation concept as well as relevant
references played a key role in the contract decision.
Furthermore, YIT will supply, in collaboration with GETEC, the heating, cooling
and ventilation systems for the expansion and renovation work at the
Landesklinikum Mistelbach-Gänserndorf hospital in Austria. The project should
be completed by 2016. The contract with VAMED covers approx. 54,000 m² of gross
floor area with three underground levels, five above-ground floors and a
helipad. A total of 41 ventilation systems will be commissioned within the
project. In addition, YIT will be installing 3.0 MW heating systems and 2.2 MW
cooling systems. To keep energy consumption and operating costs to a minimum,
heat recovery systems that recycle approximately 65% of the generated heat will
also be used. YIT has extensive system experience when it comes to hospital
projects.
CONSTRUCTION SERVICES FINLAND
1-3/13 1-3/12 Change
-----------------------------------------------------
Revenue, EUR million 326.0 329.5 -1%
-----------------------------------------------------
Operating profit, EUR million 26.5 31.4 -16%
-----------------------------------------------------
Operating profit margin, % 8.1 9.5
-----------------------------------------------------
3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Operative invested capital, 584.2 552.1 6% 584.2 581.7 0%
EUR million
--------------------------------------------------------------------------------
- of which plot reserves, 289.1 297.0 -3% 289.1 284.2 2%
EUR million
--------------------------------------------------------------------------------
Order backlog, EUR million 1,424.9 1,428.0 0% 1,424.9 1,499.0 -5%
--------------------------------------------------------------------------------
4/12-3/13 1-12/12
----------------------------------------------------------------------------
Return on operative invested capital (last 12 months), % 22.7 23.5
----------------------------------------------------------------------------
The revenue of Construction Services Finland remained on a par with the
previous year, amounting to EUR 326.0 million in January-March (1-3/2012 EUR
329.5 million). The growth in revenue was supported by the high volume of
housing production and continued good residential sales in the first quarter.
The segment's operating profit decreased by 16 percent in January-March
compared to the previous year, amounting to EUR 26.5 million (1-3/2012: EUR
31.4 million). The operating profit of business premises operations decreased
significantly.
The order backlog at the end of March remained on a par with the previous year,
amounting to EUR 1,424.9 million (3/2012: EUR 1,428.0 million). The order
backlog decreased slightly from the end of December 2012, at which time it
stood at EUR 1,499.0 million.
The segment's capital tied into plot reserves totalled EUR 289.1 million at the
end of March (12/2012: EUR 284.2 million). The reserves included 1,832,000
square metres of residential plots (12/2012: 1,796,000) and 870,000 square
metres of business premises (12/2012: 877,000).
Good residential sales to consumers continued
Residential sales continued at a good level in the first quarter. The demand
focused particularly on residential units in the final stages of construction
and completed residential units. Housing prices remained stable during the
review period. Interest rates remained low during the first quarter, but
customers' access to financing became more difficult with banks tightening
their credit terms.
In February, YIT and Ålandsbanken's new housing fund signed an agreement on the
sale of 221 apartments in the Helsinki region and other growth centres in
Finland. The value of the agreement was approximately EUR 43 million.
Residential sales during the first quarter were also partly supported by the
change in asset transfer tax legislation that took force in March 2013,
increasing the asset transfer tax from 1.6% to 2.0%. The tax is calculated from
the debt-free price of the apartment. In particular, the amendment had a
positive impact on residential sales in February. Correspondingly, as expected,
sales have been slightly softer than normal since the beginning of March.
Residential construction in Finland, number of residential units
1-3/13 1-3/12 Change 10-12/12 7-9/12 4-6/12
--------------------------------------------------------------------------------
Sold 715 775 -8% 597 668 717
--------------------------------------------------------------------------------
- of which directly to 661 453 46% 505 414 497
consumers*
--------------------------------------------------------------------------------
Start-ups 586 559 5% 531 770 996
--------------------------------------------------------------------------------
- of which directly to 532 237 124% 439 516 776
consumers
--------------------------------------------------------------------------------
Completed 895 616 45% 579 591 936
--------------------------------------------------------------------------------
- of which directly to 560 499 12% 427 591 847
consumers
--------------------------------------------------------------------------------
Under construction** 3,931 4,049 -3% 4,240 4,288 4,109
--------------------------------------------------------------------------------
- of which sold** 2,247 2,398 -6% 2,409 2,409 2,293
--------------------------------------------------------------------------------
For sale** 2,153 1,966 10% 2,282 2,348 2,245
--------------------------------------------------------------------------------
- of which completed 469 315 49% 451 469 429
--------------------------------------------------------------------------------
*) Includes 221 residential units sold to Ålandsbanken's housing fund.
**) At the end of the period.
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 for YIT's housing construction is on residential development projects
aimed directly at consumers in accordance with market demand. YIT is also
active in housing products aimed at investors. During the first quarter, YIT
started the construction of 532 residential units as own development projects.
In addition, YIT started up the construction of a total of 54 residential units
as tender-based projects in the first 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, 57 percent have been sold (3/2012:
59%), which reduces YIT's sales risk. The sales inventory is focused on
medium-priced residential production: approximately 70 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 364.2 million at the end
of March 2013 (3/2012: EUR 292.2 million).
Challenges in the business and office premises market
The development of the business and office premises market was as soft as
expected in the first quarter, and the order backlog of YIT's business and
office premises operations remained at a moderate level. Lease agreements were
signed for approximately 6,700 square metres of premises. However, the leasing
of business and office premises under construction progressed slower than
planned in January-March, and as a result, sales of own development projects
have been postponed towards the end of the year. Rents for business premises
and investors' yield requirements remained stable in the first quarter.
YIT signed an agreement with Finnreit Fund Management Company Ltd on the sale
of the assisted living facilities located in Hyrylä, Tuusula, Finland, to the
eQ Care (non-UCITS) fund. The value of the agreement was approximately EUR 6.2
million. Palvelukoti Joenranta Oy is the tenant of the building, which was
completed in January 2013. The floor area of the building is 3,600 square
metres and it has places for 47 residents. Development of infrastructure services remained stable
The demand for infrastructure construction remained stable in the first
quarter, but the order backlog of infrastructure services at the end of March
2013 decreased compared to the previous year. Significant on-going road
projects proceeded according to plans during the first quarter.
YIT and the City of Lahti signed an agreement on two regional maintenance
contracts in the Lahti region in March. Both contracts will commence during the
second quarter, and their combined value is over EUR 7 million. The term of the
contract for the eastern districts of Lahti is five years and four months and
that of the northern districts of Lahti is six years and four months.
INTERNATIONAL CONSTRUCTION SERVICES
1-3/13 1-3/12 Change
-----------------------------------------------------
Revenue, EUR million 119.0 107.9 10%
-----------------------------------------------------
Operating profit, EUR million 11.6 9.7 20%
-----------------------------------------------------
Operating profit margin, % 9.8 9.0
-----------------------------------------------------
3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Operative invested capital, 718.7 651.8 10% 718.7 708.3 1%
EUR million
--------------------------------------------------------------------------------
- of which plot reserves, 401.5 346.1 16% 412.7 389.3 6%
EUR million
--------------------------------------------------------------------------------
Order backlog, EUR million 1,285.3 1,142.9 12% 1,285.3 1,266.1 2%
-------------------------------------------------------------------------------- 4/12-3/13 1-12/12
----------------------------------------------------------------------------
Return on operative invested capital (last 12 months), % 12.0 12.3
----------------------------------------------------------------------------
The revenue of International Construction Services for January-March increased
by 10 percent compared to the previous year, amounting to EUR 119.0 million
(1-3/2012: EUR 107.9 million).
The operating profit for January-March increased compared to the previous year,
amounting to EUR 11.6 million (1-3/2012: EUR 9.7 million). The growth in
revenue and operating profit was supported by the high volume of housing
production and continued good residential sales in Russia.
Due to the high number of residential start-ups, the order backlog at the end
of March increased by 12 percent on the previous year, amounting to EUR 1,285.3
million (3/2012: EUR 1,142.9 million). The order backlog was on a par with the
end of December 2012, at which time it stood at EUR 1,266.1 million. The
segment's order backlog was partially improved by the strengthening of the
ruble, which had an impact of EUR 14.6 million in January-March.
The costs of completing the current residential and business premises
development projects for sale in International Construction Services amounted
to EUR 570 million at the end of March 2013 (3/2012: EUR 431.0 million).
The segment's capital tied into plot reserves totalled EUR 401.5 million at the
end of March (12/2012: EUR 389.3 million). The reserves included 2,751,000
square metres of residential plots (12/2012: 2,590,000) and 574,000 square
metres of business premises in Russia, the Baltic countries, the Czech Republic
and Slovakia (12/2012: 574,000).
The segment's return on operative invested capital for the last 12 months was
12.0 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
increasing further capital efficiency.
Russian residential sales continued well
Russia generated 82 percent of the revenue of International Construction
Services for January-March (1-3/2012: 79%). Revenue in Russia increased from
the previous year to EUR 97.6 million (1-3/2012: EUR 85.6 million).
The capital tied into plot reserves in Russia amounted to EUR 314.2 million at
the end of March (12/2012: EUR 302.0 million). The reserves included 2,353,000
square metres of residential plots (12/2012: 2,179,000) and 446,000 square
metres of business premises (12/2012: 446,000).
Residential sales in Russia have been at the normal level in April.
Residential construction in Russia, number of residential units
1-3/13 1-3/12 Change 10-12/12 7-9/12 4-6/12
----------------------------------------------------------------------
Sold 889 955 -7% 1,288 1,032 934
----------------------------------------------------------------------
Start-ups 1,146 1,540 -26% 1,818 1,006 1,123
----------------------------------------------------------------------
Completed 1) 512 593 -14% 2,217 622 765
----------------------------------------------------------------------
Under construction* 9,290 8,313 12% 8,662 8,995 8,670
----------------------------------------------------------------------
- of which sold* 3,148 2,881 9% 3,020 3,576 3,159
----------------------------------------------------------------------
For sale* 6,838 5,799 18% 6,530 5,961 5,987
----------------------------------------------------------------------
- of which completed 696 367 90% 888 542 476
----------------------------------------------------------------------
*) At the end of the period.
Under construction at the end of the 3/13 3/12 Change 12/12 9/12 6/12
period
--------------------------------------------------------------------------------
St. Petersburg 2,168 2,102 3% 2,686 2,323 2,290
--------------------------------------------------------------------------------
Moscow region 4,198 3,882 8% 3,796 4,259 4,016
--------------------------------------------------------------------------------
Yekaterinburg, Kazan, Rostov-on-Don 2,924 2,329 26% 2,180 2,413 2,364
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 the Moscow
region, Rostov-on-Don and St. Petersburg during the first quarter.
Residential sales were supported by continued favourable consumer confidence.
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 promotion measures and extensive housing loan cooperation
with banks. The significance of loan financing has remained high in Russia,
and, in the first quarter, customers have taken out housing loans in 38 percent
of YIT's residential sales.
Interest rates for mortgages increased further in Russia during the first
quarter, but remained at a locally moderate level. 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.
After the holiday season at the beginning of the year, residential sales have
picked up in March and April. Housing prices remained stable during the first
quarter of 2013.
Based on the favourable demand, YIT has started up new residential projects in
Russia, and in the first quarter start-ups began in the Moscow region,
Rostov-on-Don and Yekaterinburg as planned. In St. Petersburg, the process of
the authorities is slow, which has also caused delays to the start of a number
of YIT's projects. The costs of construction have remained stable.
The number of residential units for sale has been increased in a controlled
manner, and the sales inventory at the end of March was geographically
balanced. The number of completed but unsold residential units decreased during
the first quarter. Of the residential units under construction, 34 percent had
been sold (3/2013: 35%).
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 March 2013, YIT was responsible for the service
and maintenance of approximately 14,000 residential units.
Revival of the residential market has continued in the Baltic countries and
Central Eastern Europe
Estonia, Latvia, Lithuania, the Czech Republic and Slovakia accounted for 18
percent of the revenue of International Construction Services for January-March
(1-3/2012: 21%). Revenue generated in these countries decreased slightly
compared to the year before to EUR 21.3 million (1-3/2012: EUR 22.3 million).
The capital tied into plot reserves in the Baltic countries, the Czech Republic
and Slovakia totalled EUR 87.3 million at the end of March (12/2012: EUR 87.3
million). The reserves included 398,000 square metres of residential plots
(12/2012: 411,000) and 128,000 square metres of business premises (12/2012:
128,000).
Residential sales improved in the Baltic countries during the first quarter on
the previous year. YIT will shift the focus of operations from tender-based
production to own residential development projects in order to improve
profitability as residential demand revives.
Residential construction in the Baltic countries and Central Eastern Europe,
number of residential units
1-3/13 1-3/12 Change 10-12/12 7-9/12 4-6/12
----------------------------------------------------------------------
Sold 109 75 45% 118 99 92
----------------------------------------------------------------------
Start-ups 114 0 0 246 284
----------------------------------------------------------------------
Completed 146 232 -37% 107 35 47
----------------------------------------------------------------------
Under construction* 684 378 81% 715 822 615
----------------------------------------------------------------------
- of which sold* 102 104 -2% 108 131 110
----------------------------------------------------------------------
For sale* 750 526 43% 743 861 718
----------------------------------------------------------------------
- of which completed 168 252 -33% 136 170 213
----------------------------------------------------------------------
*) At the end of the period.
The construction of 114 residential units was started in Tallin, Bratislava and
Prague during the first quarter of 2013 (1-3/2012: 0). At the end of March,
there were 684 residential units under construction (3/2012: 378). 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-March, a total of 109
residential units were sold in these countries (1-3/2012: 75). At the end of
March, there were 750 residential units for sale (3/2012: 526), of these 168
were completed (3/2012: 252). The number of residential units completed during
the first quarter of 2013 was 146 (1-3/2012: 232).
Construction of business premises in the Baltic countries and Central Eastern
Europe
During the first quarter, YIT signed an agreement on building technical
maintenance buildings for the Klaipeda port terminal in western Lithuania. The
project is part of the contract signed by a consortium between Lemminkäinen and
YIT for the renewal of the container terminal at Klaipeda Port. YIT Group's
Lithuanian subsidiary YIT Kausta is responsible for YIT's role in the
consortium. The total value of the project is EUR 28 million, of which YIT's
share represents slightly over EUR 6 million.
PERSONNEL
Personnel by business segment 3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Building Services Northern 14,870 15,640 -5% 14,870 15,159 -2%
Europe
--------------------------------------------------------------------------------
Building Services Central Europe 3,311 3,505 -6% 3,311 3,380 -2%
--------------------------------------------------------------------------------
Construction Services Finland 3,449 3,438 0% 3,449 3,540 -3%
--------------------------------------------------------------------------------
International Construction 2,905 2,730 6% 2,905 2,808 3%
Services
--------------------------------------------------------------------------------
Corporate Services 388 390 -1% 388 396 -2%
--------------------------------------------------------------------------------
Group, total 24,923 25,703 -3% 24,923 25,283 -1%
--------------------------------------------------------------------------------
Personnel by country 3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Finland 8,684 8,967 -3% 8,684 8,868 -2%
--------------------------------------------------------------------------------
Sweden 4,273 4,690 -9% 4,273 4,492 -5%
--------------------------------------------------------------------------------
Norway 3,646 3,621 1% 3,646 3,642 0%
--------------------------------------------------------------------------------
Germany 2,408 2,577 -7% 2,408 2,450 -2%
--------------------------------------------------------------------------------
Russia 2,754 2,579 7% 2,754 2,650 4%
--------------------------------------------------------------------------------
Denmark 1,093 1,169 -7% 1,093 1,104 -1%
--------------------------------------------------------------------------------
Baltic countries 1,002 989 1% 1,002 991 1%
--------------------------------------------------------------------------------
Other countries (Central Europe 1,063 1,111 -4% 1,063 1,086 -2%
excl. Germany)
--------------------------------------------------------------------------------
Group, total 24,923 25,703 -3% 24,923 25,283 -1%
--------------------------------------------------------------------------------
In January-March 2013, the Group employed 25,009 people on average (1-3/2012:
25,821). At the end of March, the Group employed 24,923 people (3/2012:
25,703). The personnel expenses for January-March amounted to a total of EUR
350.3 million (1-3/2012: EUR 365.0 million).
The cost effect of YIT's share-based incentive scheme was about EUR 2.0 million
in January-March 2013 (1-3/2012: EUR 1.4 million).
STRATEGIC OBJECTIVES
YIT Corporation's Board of Directors confirmed the Group's strategy for
2013-2014 on September 20, 2012. The key strategic objective is increasingly
focused, balanced and profitable growth. It was decided that the Group's
strategic long-term targets remain unchanged: average annual revenue growth of
more than 10 percent, return on investment of 20 percent, operating cash flow
after investments sufficient for dividend payout and reduction of debt, equity
ratio of 35 percent and dividend payout of 40-60 percent of net profit for the
period. 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.
In terms of business operations, the focus areas for YIT's growth continue to
be building systems service and maintenance operations and residential
construction. Growth is being sought organically and through acquisitions.
Particular focus areas for growth include residential construction in Russia
and building services in Germany.
To support its strategic goals, YIT has launched three development programmes
which focus on energy-efficient solutions, the best quality living experience
and efficient building services. Building Services Northern Europe will focus
on improving profitability and strengthening its cash flow. In addition to
increasing the share of service and maintenance business, Building Services
Central Europe will seek to strengthen its position during the strategy period,
particularly in large Design & Build projects. In residential construction, YIT
is investing in innovative solutions and strengthening its forerunner status.
In Construction Services Finland, YIT is responding to customer demand by
particularly increasing the production of moderately priced housing during the
strategy period. YIT aims to expand in building system services in the
German-speaking region further. In International Construction Services, the
company is focusing on expanding in Russia. The focus of operations in all
construction business areas is on increasing the share of own development
production.
YIT published a stock exchange release on the confirmation of the strategy on
September 21, 2012, and materials for the Capital Market Day focusing on the
strategic focus areas on September 25, 2012.
PROGRESS OF THE PARTIAL DEMERGER
In accordance with the decisions of YIT Corporation's Board of Directors, the
company has continued the preparations for the development of the Group's
business operations towards a new strategic growth phase. In order to achieve
this, the Construction Services business and Building Services business would
be demerged into separate groups. YIT published a stock exchange release on
starting the preparations for the demerger on February 5, 2013.
YIT's Board of Directors approved and published the demerger plan for the
partial demerger on February 21, 2013. According to the demerger plan, YIT
will demerge so that all of the assets and liabilities related to YIT's
Building Systems business are transferred to a company to be established in the
demerger named Caverion Corporation (“Caverion”). YIT's Construction Services
business will remain with YIT.
The demerger will become effective when YIT's Extraordinary General Meeting has
approved the demerger and its implementation is recorded with the Finnish Trade
Register. The planned registration date is June 30, 2013, after which the
shares of Caverion will be admitted for public trading on Nasdaq OMX Helsinki
Oy. Trading in Caverion shares is intended to commence as soon as possible
after the implementation of the demerger.
The approval of the demerger plan requires that the resolution on approval be
made by a statutory majority of two-thirds of the shares and votes represented
at the general meeting of shareholders. In addition, the implementation of the
demerger depends on YIT's creditors not objecting to the demerger or that any
creditors objecting to the demerger have been paid or received a sufficient
security for their receivable in accordance with a court ruling.
The demerger plan includes the proposals of YIT's Board of Directors to the
Extraordinary General Meeting planned to be held on June 17, 2013, concerning,
among other items, the Articles of Association of Caverion, the proceedings for
election of the members of the Board of Directors and auditor of Caverion, the
demerger consideration to YIT's shareholders and the distribution of the assets
and liabilities of YIT to Caverion.
According to the demerger plan, YIT's shareholders shall receive as demerger
consideration one (1) share in Caverion for each share owned in YIT. No action
is required from the shareholders in relation to the receipt of the demerger
consideration.
More detailed information related to the demerger is presented in the demerger
prospectus, anticipated to be published at the beginning of June 2013.
All demerger-related information is available in the Investors section of YIT's
website at www.yitgroup.com/demerger.
GROUP FINANCIAL DEVELOPMENT BASED ON GROUP REPORTING (IFRS, IFRIC 15)
1-3/13 1-3/12 Change
----------------------------------------------------------------------------
Revenue, EUR million 1,035.2 1,098.4 -6%
----------------------------------------------------------------------------
Operating profit, EUR million 35.3 55.0 -36%
----------------------------------------------------------------------------
Operating profit margin, % 3.4 5.0
----------------------------------------------------------------------------
Profit before taxes, EUR million 33.5 49.7 -33%
----------------------------------------------------------------------------
Profit for the review period, EUR million 1) 25.1 36.4 -31%
----------------------------------------------------------------------------
Earnings/share, EUR 0.20 0.29 -31%
----------------------------------------------------------------------------
Operating cash flow after investments, EUR million -7.5 -9.0
----------------------------------------------------------------------------
1) Attributable to equity holders of the parent company
3/13 3/12 Change 3/13 12/12 Change
--------------------------------------------------------------------------------
Order backlog, EUR million 4,291.9 4,385.3 -2% 4,291.9 4,245.1 1%
--------------------------------------------------------------------------------
Return on investment (last 14.0 13.1 14.0 14.9
12 months), %
--------------------------------------------------------------------------------
Equity ratio, % 31.1 27.8 31.1 32.5
--------------------------------------------------------------------------------
Gearing ratio, % 88.9 87.6 88.9 73.9
--------------------------------------------------------------------------------
Revenue based on Group reporting decreased by 6 percent compared to the
previous year, amounting to EUR 1,035.2 million in January-March (1-3/2012: EUR
1,098.4 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 first 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 the IFRIC 15 adjustment, the Group's operating profit for
January-March decreased by 36 percent compared to the previous year, amounting
to EUR 35.3 million (1-3/2012: EUR 55.0 million). Following the IFRIC 15
adjustment, the Group's operating profit margin for January-March was 3.4
percent (1-3/2012: 5.0%).
Profit before taxes based on Group reporting decreased by 33 percent compared
to the previous year, amounting to EUR 33.5 million in January-March (1-3/2012:
EUR 49.7 million).
Earnings per share based on Group reporting decreased by 31 percent from the
year before in January-March, amounting to EUR 0.20 (1-3/2012: EUR 0.29).
In January-March, the effective tax rate based on Group reporting was 25.1
percent (1-12/2012: 24.4%).
The order backlog based on Group reporting amounted to EUR 4,291.9 million at
the end of March (3/2012: EUR 4,385.3 million).
Return on investment amounted to 14.0 percent for the last 12 months (1-3/2012:
13.1%). At the end of March, the Group's invested capital amounted to EUR
1,896.5 million (3/2012: EUR 1,814.4 million). Invested capital is calculated
by deducting non-interest bearing liabilities from the balance sheet total. The
balance sheet total at the end of March was EUR 3,644.3 million (3/2012: EUR
3,620.2 million).
Of the Group's invested capital, 32 percent (12/2012: 30%), or EUR 608.4
million (12/2012: EUR 585.2 million) was invested in Russia. The amount of
capital invested in Russia increased slightly compared to the end of December,
and the exchange rate changes of the ruble increased the capital invested by
EUR 8.6 million in January-March. 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 increase capital
efficiency.
The equity ratio decreased compared to the end of December 2012, amounting to
31.1 percent (12/2012: 32.5%).
Diverse capital structure - financial position has been strengthened with the
partial demerger approaching
YIT's financing consists of diverse sources of financing and its financial
position was strengthened during the first quarter of 2013. Cash and cash
equivalents amounted to EUR 130.3 million at the end of March (12/2012: EUR
175.7 million). In addition, YIT has undrawn committed credit facilities
amounting to EUR 280 million and undrawn overdraft facilities amounting to EUR
79.9 million. Of the credit facilities, EUR 30 million will fall due in
December 2014 and EUR 250 million in December 2015.
In addition to these credit facilities, YIT has signed two new loan agreements
as part of the demerger process. The loan agreement with a Nordic bank group
amounting to a total of EUR 267 million includes an amortizing long-term loan
facility of EUR 140 million falling due in June 2016, a long-term revolving
credit facility of EUR 60 million falling due in June 2016 and a short-term
bridge loan facility of EUR 67 million falling due in June 2014. Upon the
registration of the partial demerger, this loan agreement will be transferred
to Caverion Corporation.
In addition, YIT has signed a EUR 150 million bank financing agreement that
will fall due in December 2014 at the latest. These new loan agreements and the
existing credit facilities will create a sufficient liquidity buffer for
implementing the partial demerger and continuing and developing the business
operations. Both of the new loan agreements are undrawn and thereby the total
amount of committed financing agreements available to YIT on March 31, 2013,
was EUR 697 million. The new loan agreements include a financial covenant
linked to YIT's equity ratio, taking effect also with regard to YIT's existing
revolving credit facilities and bank loans after the demerger. After the
demerger, the loans transferred to Caverion Corporation will be subject to a
financial covenant based on the ratio of Caverion Group's net debt to EBITDA.
The gearing ratio increased clearly during the first quarter of 2013. The
gearing ratio was 88.9 per cent at the end of March (12/2012: 73.9%). Net
Interest-bearing debt increased and amounted to EUR 839.0 million at the end of
March (12/2012: EUR 746.2 million).
Net financial expenses decreased in January-March compared to the previous year
and amounted to EUR 1.9 million (1-3/2012: EUR 5.2 million), or 0.2 percent of
the Group's revenue (1-3/2012: 0.5%). The decrease in net financial expenses
was due to an increase in the fair value of interest rate hedges outside hedge
accounting and non-recurring financial income. The net financial expenses
include EUR 4.6 million of capitalisations of interest expenses in compliance
with IAS 23 (1-3/2012: EUR 3.8 million). The exchange rate differences included
in the net financial expenses, totalling EUR -0.6 million (1-3/2012: EUR -1.0
million), were comprised almost entirely of the costs of hedging debt
investments in Russia.
The hedged ruble exposure increased from the end of December 2012. At the end
of March 2013, EUR 133.6 million of the capital invested in Russia was
comprised of debt investments (12/2012: EUR 125.2 million) and EUR 474.8
million was equity investments or similar fixed net investments (12/2012: EUR
460.0 million). In accordance with YIT's hedging policy, the debt investments
are hedged against exchange rate risk, while equity investments are not hedged
due to their permanent nature.
Borrowings increased and amounted to EUR 969.3 million at the end of March
(12/2012: EUR 921.9 million), and the average interest rate was 2.9 percent
(12/2012: 3.1%). Fixed-rate loans accounted for approximately 71 percent of the
Group's borrowings (12/2012: 75%). Of the loans, approximately 45 percent had
been raised directly from the capital and money markets (12/2012: 40%),
approximately 40 percent from banks and other financial institutions (12/2012:
45%) and approximately 15 percent from insurance companies (12/2012: 15%). The
maturity distribution of long-term loans was balanced. A total of EUR 97.3
million of long-term loans will mature in 2013.
The total amount of construction-stage contract receivables sold to financial
institutions decreased slightly from the end of December 2012, amounting to EUR
253.0 million at the end of March (12/2012: EUR 265.5 million). Of this amount,
EUR 163.6 million is included in current borrowings on the balance sheet
(12/2012: EUR 175.4 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 0.8 million during the review period
(1-3/2012: EUR 1.4 million) and these are fully included in the financial
expenses.
Participations in the housing corporation loans of unsold completed residential
units amounted to EUR 79.5 million at the end of March (12/2012: EUR 77.5
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 0.6 million in
the review period (1-3/2012: EUR 0.5 million).
During the first quarter, YIT Corporation paid out dividends of EUR 94.0
million for 2012 in compliance with the resolution of the Annual General
Meeting.
The Group's solid financial position enables the implementation of YIT's growth
strategy and the acquisitions, reorganisations as well as plot investments it
requires. On the other hand, the Group has also 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, 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 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
March 15, 2013. The stock exchange releases and a presentation of the members
of the Board of Directors are available at YIT's website: www.yitgroup.com.
SHARES AND SHAREHOLDERS
The company has one series of shares. Each share carries one vote and confers
an equal right to a dividend.
Share capital and number of shares
YIT Corporation's share capital and the number of shares outstanding did not
change during the review period. YIT Corporation's share capital was EUR
149,216,748.22 at the beginning of 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 1,839,577 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, 3,726 shares were returned to the
company in accordance with the terms and conditions of the share-based
incentive scheme, after which the company held 1,843,303 treasury shares at the
end of March 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 rate of the share on the last trading day of the
review period on March 28, 2013, was EUR 16.25 (March 30, 2012: EUR 16.12). The
share price increased by approximately 8 percent during January-March. The
highest price of the share during the review period was EUR 17.88 (1-3/2012:
EUR 17.25), the lowest was EUR 15.02 (1-3/2012: EUR 12.12) and the average
price was EUR 16.74 (1-3/2012: EUR 15.36). Share turnover on Nasdaq OMX in
January-March amounted to 21,381 thousand shares (1-3/2012: 35,141 thousand).
The value of share turnover was EUR 358.0 million (1-3:2012: EUR 539.9
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-March, 7,189 thousand YIT
Corporation shares changed hands in alternative market places (1-3/2012: 9,783
thousand), corresponding to approximately 26 percent of the total share trade
(1-3/2012: 22%). Of the alternative market places, YIT shares changed hands
particularly in Chi-X, source: Fidessa Fragmentation Index.
YIT Corporation's market capitalisation at the end of the review period was EUR
2,037.4 million (3/2012: EUR 2,019.3 million). Market capitalisation has been
calculated excluding the shares held by the company.
Number of shareholders and flagging notifications
At the end of March 2013, the number of registered shareholders was 37,723
(3/2012: 36,435). At the end of March 2013, a total of 35.8 percent of the
shares were owned by nominee-registered and non-Finnish investors (3/2012:
31.8%).
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 goals 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 review of the strategy.
YIT has developed the Group's business structure to be balanced and more
tolerant of economic fluctuations. The share of steadily developing service and
maintenance operations has been increased. Operations have been expanded
geographically so that economic fluctuations impact operations at different
times in different markets. The business model has also been developed so that
the construction services can operate independently. Continuous monitoring and
analysis make it possible to react quickly to changes in the operating
environment and to utilise the new business opportunities provided by them.
The Group's aim is to grow profitably, both organically and through
acquisitions. Risks associated with acquisitions and outsourcing are managed by
selecting projects according to strict criteria and effective integration
processes that familiarise new employees with YIT's values, operating methods
and strategy. The Group has a uniform process and guidelines for the
implementation of acquisitions.
YIT's typical operational risks include risks related to plot investments,
sales risk of residential and commercial development projects and risks related
to contract tenders, service agreements, project management and personnel. YIT
manages sales risk by matching the number of housing start-ups with the
estimated residential demand and the number of unsold residential units (the
figures for residential production are presented under Development by business
segment) and by normally securing key tenants and/or the investor prior to
starting a business premises project. 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 56 percent of the revenue of YIT during the review period was
derived from euro countries. The other key currencies are the Swedish krona and
the Norwegian krone as well as the Russian ruble. The Group's most significant
currency risk is related to investments denominated in rubles. Capital invested
in Russia totalled EUR 608.4 million at the end of the period (12/2012: EUR
585.2 million). The amount of equity or equivalent net investments at the end
of the period came to EUR 474.8 million (12/2012: EUR 460.0 million). The
equity investments in the Russian subsidiaries are unhedged in accordance with
the treasury policy, and a potential devaluation of the ruble would have an
equal negative impact on the Group's shareholders' equity. Debt investments
amounted to EUR 133.6 million at the end of the period (12/2012: EUR 125.2
million), 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.
MORE EXTENSIVE AND BALANCED REPORTING AS PART OF CORPORATE RESPONSIBILITY
YIT has published its first corporate responsibility report compliant with the
international Global Reporting Initiative (GRI) guidelines. The report can be
found as part of YIT's Annual Report 2012. In practice, this means more
balanced reporting of the financial, social and environmental aspects related
to YIT's business. Compared to the previous years, more information on YIT's
energy consumption, carbon dioxide emissions and personnel matters are now
available. There is a GRI table at the end of the report, making it easier to
find information in the report.
OUTLOOK FOR 2013
YIT Corporation reiterates its estimate issued in connection with the financial
statements for 2012, according to which it estimates the Group revenue based on
segment reporting for 2013 to remain at the level of 2012 and operating profit
to grow in 2013.
The guidance does not take into account one-off costs relating to the planned
demerger.
Increased uncertainty about general macroeconomic development is impacting
YIT's business operations and customers.
Building Services Northern Europe
The market situation in building services will vary by country in the Nordic
countries in 2013.
The service and maintenance market is estimated to remain stable or even grow
slightly in all countries in 2013. The increase in technology in buildings
increases the need for new services, and the demand for energy efficiency
services is expected to remain stable. The service and maintenance market is
expected to grow particularly in Norway by 3-4 percent.
Demand in the project market is expected to weaken further in 2013 in Finland,
Sweden and Denmark. The size of the Swedish project market as a whole is
expected to decrease by approximately 5 percent during 2013, mainly due to
weakening demand. The Norwegian project market has developed well during the
first quarter of the year, and the favourable development is expected to
continue during 2013.
In the Baltic countries and Russia, both the project and service market demand
is estimated to remain low.
Building Services Central Europe
In Building Services Central Europe, the service and maintenance market is
expected to grow at a moderate rate. The opportunities for growth in service
and maintenance are still quite favourable, particularly in Germany and
Austria. In Poland, the building system services market will continue to grow
but suffer from oversupply, which will have a negative impact on prices. The
building system services market in the rest of Central Eastern Europe (the
Czech Republic and Romania) is developing slowly with a low level of activity.
Decision-making on new investments is still slow, but positive signs can be
seen. After the stagnation in 2012, new investments in building systems are
expected to increase slightly in Germany and Austria. Increasing public
investments and increasing need for renovation and repair work are expected to
underlie the growth. Project demand is estimated to continue to decrease
slightly or remain at the current level in Central Eastern Europe.
Growth in the demand for energy-efficient services is possible over the next
few years with tightening environmental legislation, particularly in Germany
and Austria. Certifications and general energy efficiency are becoming
increasingly important for value generation in the Central European property
market, which will continue to support the growth opportunities. Services and
projects related to the maintenance of traffic infrastructure are also
estimated to develop favourably.
Construction Services Finland
With regard to Construction Services Finland, housing demand is expected to
continue to be good, with the need for new housing remaining high. Residential
demand continues to be supported by continued low interest rates, relatively
stable employment rates and migration to growth centres. Furthermore, the
population and the number of household-dwelling units will increase with
continued migration and the increasing number of one-person households.
According to the April 2013 estimate by the Confederation of Finnish
Construction Industries RT (CFCI), 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 very
low level of long-term interest rates increases investors' interest in
high-yield properties. According to Euroconstruct's December 2012 estimate,
construction of business premises will decrease by approximately 19 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 December 2012 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 rather low.
The infrastructure construction market is expected to remain stable and at the
same level as in 2012 (Euroconstruct, December 2012). 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, the growth is expected to slow down slightly compared to the
previous year as the forecasts of economic growth in Russia have been lowered
recently and the price of oil has also decreased recently.
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 and
favourable development in the housing loan market, even though housing loan
interest rates began to increase at the end of 2011.
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 clearly less 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, but growing unemployment is seen as a risk.
INTERIM REPORT JAN 1 - MARCH 31, 2013: TABLES
The information presented in the interim report has not been audited.
1. SEGMENT REPORTING
1.1 Segment reporting accounting principles
1.2 Key figures, segment reporting
1.3 Revenue, segment reporting
1.4 Operating profit and Profit for the review period, segment reporting
1.5 Order backlog, segment reporting
1.6 YIT Group figures by quarter, segment reporting
1.7 Segment information by quarter, segment reporting
1.8 Reconciliation of the segment reporting and the group reporting
2. GROUP REPORTING, IFRS
2.1 Key figures, IFRS
2.2 YIT Group figures by quarter, IFRS
2.3 Consolidated income statement Jan 1 - March 31, 2013, IFRS
2.4 Statement of comprehensive income Jan 1 - March 31, 2013, IFRS
2.5 Consolidated balance sheet, IFRS
2.6 Consolidated statement of changes in equity
2.7 Consolidated cash flow statement
2.8 Accounting principles of the Interim report
2.9 Definitions of key financial figures
2.10 Financial risk management
2.11 Unusual items affecting operating profit
2.12 Business combinations and disposals
2.13 Changes in property, plant and equipment
2.14 Inventories
2.15 Notes on equity
2.16 Borrowings and fair values
2.17 Change in contingent liabilities and assets and commitments
2.18 Transactions with associated companies and joint ventures
1. SEGMENT REPORTING
1.1 Accounting principles of segment reporting
Building Services Northern Europe and Building Services Central Europe
segments' reporting to YIT Group's management board is based on YIT Group's
accounting principles. In the reporting of Construction Services Finland
segment and International Construction Services segment, the revenue from own
residential and commercial development projects is recognised on the basis of
the percentage of degree of completion and the degree of sale, using percentage
of completion method, which does not fully comply with Group's IFRS accounting
principles. According to Group's IFRS accounting principles revenue from own
residential and commercial development projects is recognised at the
completion. In the case of YIT's commercial real estate development projects,
the recognition practice will be evaluated on a case-by-case basis and in
accordance with the terms and conditions of each contract. Sold projects are
recognised either when the construction work has started or when the project is
complete. The share of income and expenses to be recognised is calculated by
multiplying the percentage of completion by the percentage of sale multiplied
by the occupancy rate. YIT usually sells commercial real estate development
projects to investors either prior to construction or during an early phase.
The impact on revenue and operating profit of two revenue recognition
principles is shown in the line IFRIC 15 adjustment. As a result of the
accounting policy, Group figures can fluctuate greatly between quarters. The
chief operating decision-maker has been identified as the YIT Group's
Management Board, which review the Group's internal reporting in order to
assess performance and allocate resources to the segments.
In January 1, 2013 the Group has adopted a new recording method in segment
reporting. The IAS 23 concerning the capitalisation of borrowing costs is not
applied in segment reporting. IAS 23 standard provides that borrowing costs
directly attributable to certain qualified assets, for example construction
project, shall be capitalized as part of the cost of that asset. The comparison
figures have been adjusted correspondingly. The change increased the operating
profit in segment reporting EUR 13.6 million in 1-12/2012, EUR 9.2 million in
1-9/2012, EUR 5.9 million in 1-6/2012 and EUR 2.9 million in 1-3/2012.
1.2 Key figures, segment reporting
1-3/13 1-3/12 Change 1-12/12
--------------------------------------------------------------------------------
Revenue, EUR million 1,041.6 1 098.3 -5% 4,675.9
--------------------------------------------------------------------------------
Operating profit, EUR million 40.2 55.1 -27% 262.2
--------------------------------------------------------------------------------
% of revenue 3.9 5.0 5.6
--------------------------------------------------------------------------------
Profit before taxes, EUR million 33.8 46.1 -27% 223.6
--------------------------------------------------------------------------------
Profit for the report period, EUR million 1) 25.6 33.9 -25% 168.1
--------------------------------------------------------------------------------
Earnings per share, EUR 0.20 0.27 -26% 1.34
--------------------------------------------------------------------------------
Diluted earnings per share, EUR 0.20 0.27 -26% 1.34
--------------------------------------------------------------------------------
Equity per share, EUR 8.01 7.41 8% 8.50
--------------------------------------------------------------------------------
Return on investment, from the last 12 13.7 15.1 -9% 14.4
months, %
--------------------------------------------------------------------------------
Equity ratio, % 33.2 30.4 9% 34.5
--------------------------------------------------------------------------------
Order backlog at the end of the period, EUR 3,956.2 3,965.5 0% 3,901.5
million
--------------------------------------------------------------------------------
Average number of personnel 25,009 25,821 -3% 25,833
--------------------------------------------------------------------------------
1) Attributable to equity holders of the parent company
1.3 Revenue, segment reporting
EUR million 1-3/13 1-3/12 Change 1-12/12
----------------------------------------------------------------------
Building Services Northern Europe 468.6 513.1 -9% 2,089.2
----------------------------------------------------------------------
- Group internal -11.4 -11.5 -55.1
----------------------------------------------------------------------
- external 457.3 501.6 -9% 2,034.2
----------------------------------------------------------------------
Building Services Central Europe 139.2 159.4 -13% 714.2
----------------------------------------------------------------------
- Group internal -0.1 0.0 -0.8
----------------------------------------------------------------------
- external 139.1 159.4 -13% 713.4
----------------------------------------------------------------------
Construction Services Finland 326.0 329.5 -1% 1,329.0
----------------------------------------------------------------------
- Group internal -0.3 -0.3 -1.8
----------------------------------------------------------------------
- external 325.7 329.2 -1% 1,327.2
----------------------------------------------------------------------
International Construction Services 119.0 107.9 10% 599.6
----------------------------------------------------------------------
- Group internal 0.0 0.0 -0.3
----------------------------------------------------------------------
- external 118.9 107.8 10% 599.3
----------------------------------------------------------------------
Other items 0.5 0.3 1.8
----------------------------------------------------------------------
Revenue in total, segment reporting 1,041.6 1,098.3 -5% 4,675.9
----------------------------------------------------------------------
IFRIC 15 adjustments -6.4 0.1 29.9
----------------------------------------------------------------------
Revenue in total, IFRS 1,035.2 1,098.4 -6% 4,705.9
----------------------------------------------------------------------
1.4 Operating profit and Profit for the review period, segment reporting
EUR million 1-3/13 1-3/12 Change 1-12/12
--------------------------------------------------------------------------------
Building Services Northern Europe 2.2 14.5 -85% 41.1
--------------------------------------------------------------------------------
Building Services Central Europe 3.4 5.2 -34% 27.4
--------------------------------------------------------------------------------
Construction Services Finland 26.5 31.4 -16% 134.1
--------------------------------------------------------------------------------
International Construction Services 11.6 9.7 20% 80.4
--------------------------------------------------------------------------------
Other items -3.5 -5.7 -20.7
--------------------------------------------------------------------------------
Operating profit total, segment reporting 40.2 55.1 -27% 262.1
--------------------------------------------------------------------------------
Financial income and expenses -6.4 -9.0 -29% -38.7
--------------------------------------------------------------------------------
Profit before taxes, segment reporting 33.8 46.1 -27% 223.6
--------------------------------------------------------------------------------
Taxes -8.2 -12.0 -32% -54.5
--------------------------------------------------------------------------------
Attributable to non-controlling interests 0.0 -0.3 -94% -1.0
--------------------------------------------------------------------------------
Profit for the review period, segment reporting 25.6 33.9 -25% 168.1
--------------------------------------------------------------------------------
IFRIC 15 adjustments -0.5 2.6 10.6
--------------------------------------------------------------------------------
Profit for the review period, IFRS 25.1 36.4 -31% 178.6
--------------------------------------------------------------------------------
Operating profit margin, segment reporting
% 1-3/13 1-3/12 1-12/12
------------------------------------------------------------
Building Services Northern Europe 0.5 2.8 2.0
------------------------------------------------------------
Building Services Central Europe 2.5 3.3 3.8
------------------------------------------------------------
Construction Services Finland 8.1 9.5 10.1
------------------------------------------------------------
International Construction Services 9.8 9.0 13.4
------------------------------------------------------------
Operating profit, segment reporting 3.9 5.0 5.6
------------------------------------------------------------
1.5 Order backlog, segment reporting
EUR million 3/13 3/12 Change 12/12
-------------------------------------------------------------------------
Building Services Northern Europe 844.7 969.4 -13% 819.0
-------------------------------------------------------------------------
Building Services Central Europe 470.5 500.5 -6% 380.1
-------------------------------------------------------------------------
Construction Services Finland 1,424.9 1,428.0 0% 1,499.0
-------------------------------------------------------------------------
International Construction Services 1,285.3 1,142.9 12% 1,266.1
-------------------------------------------------------------------------
Other items -69.1 -75.3 -62.8
-------------------------------------------------------------------------
Order backlog total, segment reporting 3,956.2 3,965.5 0% 3,901.5
-------------------------------------------------------------------------
IFRIC 15 adjustments 335.7 419.8 -20% 343.5
-------------------------------------------------------------------------
Order backlog, IFRS 4,291.9 4,385.3 -2% 4,245.1
-------------------------------------------------------------------------
1.6 YIT Group figures by quarter, segment reporting
1-3/13 1-3/12 4-6/12 7-9/12 10-12/1
2
--------------------------------------------------------------------------------
Revenue, EUR million 1,041.6 1,098.3 1,184.5 1,115.3 1,277.8
--------------------------------------------------------------------------------
Operating profit, EUR million 40.2 55.1 63.3 71.5 72.3
--------------------------------------------------------------------------------
% of revenue 3.9 5.0 5.3 6.4 5.7
--------------------------------------------------------------------------------
Profit before taxes, EUR million 33.8 46.1 53.1 62.5 61.9
--------------------------------------------------------------------------------
Profit for the review period, EUR 25.6 33.9 40.6 48.6 45.0
million 1)
--------------------------------------------------------------------------------
Earnings/share, EUR 0.20 0.27 0.32 0.39 0.36
--------------------------------------------------------------------------------
Diluted earnings/share, EUR 0.20 0.27 0.32 0.39 0.36
--------------------------------------------------------------------------------
Equity/share, EUR 8.01 7.41 7.60 8.15 8.50
--------------------------------------------------------------------------------
Return on investment, from the last 13.7 15.1 13.9 14.9 14.4
12 months, %
--------------------------------------------------------------------------------
Equity ratio, % 33.2 30.4 31.2 32.8 34.5
--------------------------------------------------------------------------------
Order backlog at the end of the 3,956.2 3,965.5 4,045.4 4,018.6 3,901.5
period, EUR million
--------------------------------------------------------------------------------
Average number of personnel 25,009 25,821 25,998 26,002 25,478
--------------------------------------------------------------------------------
Personnel at the end of the period 24,923 25,703 26,255 25,788 25,283
--------------------------------------------------------------------------------
1) Attributable to equity holders of the parent company
1.7. Segment information by quarter, segment reporting
Revenue by business segment
EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12
--------------------------------------------------------------------------------
Building Services Northern Europe 468.6 513.1 538.1 485.3 552.7
--------------------------------------------------------------------------------
Building Services Central Europe 139.2 159.4 179.5 179.5 195.8
--------------------------------------------------------------------------------
Construction Services Finland 326.0 329.5 347.9 308.9 342.6
--------------------------------------------------------------------------------
International Construction 119.0 107.9 133.4 153.3 205.0
Services
--------------------------------------------------------------------------------
Other items -11.3 -11.6 -14.4 -11.7 -18.3
--------------------------------------------------------------------------------
Revenue in total, segment 1,041.6 1,098.3 1,184.5 1,115.3 1,277.8
reporting
--------------------------------------------------------------------------------
Operating profit by business segment
EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12
--------------------------------------------------------------------------------
Building Services Northern Europe 2.2 14.5 15.2 15.4 -4.0
--------------------------------------------------------------------------------
Building Services Central Europe 3.4 5.2 6.6 4.8 10.8
--------------------------------------------------------------------------------
Construction Services Finland 26.5 31.4 33.5 28.9 40.2
--------------------------------------------------------------------------------
International Construction Services 11.6 9.7 14.1 25.7 31.0
--------------------------------------------------------------------------------
Other items -3.5 -5.7 -6.1 -3.2 -5.7
--------------------------------------------------------------------------------
Operating profit in total, segment 40.2 55.1 63.3 71.5 72.3
reporting
--------------------------------------------------------------------------------
Operating profit margin by business segment
% 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12
-----------------------------------------------------------------------------
Building Services Northern Europe 0.5 2.8 2.8 3.2 -0.7
-----------------------------------------------------------------------------
Building Services Central Europe 2.5 3.3 3.7 2.6 5.5
-----------------------------------------------------------------------------
Construction Services Finland 8.1 9.5 9.6 9.3 11.7
-----------------------------------------------------------------------------
International Construction Services 9.8 9.0 10.6 16.7 15.1
-----------------------------------------------------------------------------
Order backlog by business segment
EUR million 3/13 3/12 6/12 9/12 12/12
--------------------------------------------------------------------------------
Building Services Northern Europe 844.7 969.4 955.1 904.9 819.0
--------------------------------------------------------------------------------
Building Services Central Europe 470.5 500.5 473.4 435.5 380.1
--------------------------------------------------------------------------------
Construction Services Finland 1,424.9 1,428.0 1,499.9 1,541.0 1,499.0
--------------------------------------------------------------------------------
International Construction Services 1,285.3 1,142.9 1,186.7 1,207.4 1,266.1
--------------------------------------------------------------------------------
Other items -69.1 -75.3 -69.7 -70.1 -62.8
--------------------------------------------------------------------------------
Order backlog, segment reporting 3,956.2 3,965.5 4,045.4 4,018.6 3,901.5
--------------------------------------------------------------------------------
Operative invested capital*)
EUR million 3/13 3/12 6/12 9/12 12/12
----------------------------------------------------------------------
Building Services Northern Europe 321.5 327.8 352.0 393.6 344.8
----------------------------------------------------------------------
Building Services Central Europe 118.8 97.0 107.0 114.2 96.6
----------------------------------------------------------------------
Construction Services Finland 584.2 552.1 515.3 546.8 581.7
----------------------------------------------------------------------
International Construction Services 718.7 651.8 655.7 703.8 708.3
----------------------------------------------------------------------
Return on operative invested capital*)
Last 12 months, % 3/13 3/12 6/12 9/12 12/12
------------------------------------------------------------------
Building Services Northern Europe 9.0 23.4 20.3 16.9 11.0
------------------------------------------------------------------
Building Services Central Europe 23.3 60.2 39.9 30.9 32.5
------------------------------------------------------------------
Construction Services Finland 22.7 24.6 25.0 24.3 23.5
------------------------------------------------------------------
International Construction Services 12.0 6.1 6.5 10.5 12.3
------------------------------------------------------------------
*) Only operational items are taken into account in calculating the segments'
invested capital.
1.8 Reconciliation of the segment reporting and the group reporting
1-3/2013 1-3/2012
1-12/2012
--------------------------------------------------------------------------------
--------
Income Segment IFRIC IFRS Segment IFRIC IFRS Segment IFRIC
IFRS
state reporti 15 reportin 15 reportin 15
ment, ng adjust g adjust g adjust
EUR ments ments ments
milli
on
--------------------------------------------------------------------------------
--------
Revenu 1,041.6 -6.4 1,035.2 1,098.3 0.1 1,098.4 4,675.9 29.9
4,705.9
e
--------------------------------------------------------------------------------
--------
Other -991.1 1.5 -989.6 -1,032.3 -0.1 -1,032.5 -4,368.8 -33.1
-4,401.9
opera
ting
incom
e and
expen
ses
--------------------------------------------------------------------------------
--------
Deprec -10.3 0.0 -10.3 -10.9 -10.9 -44.9
-44.9
iation
--------------------------------------------------------------------------------
--------
Operat 40.2 -4.9 35.3 55.1 -0.1 55.0 262.2 -3.1
259.1
ing
profi
t
--------------------------------------------------------------------------------
--------
Financ -6.4 4.6 -1.9 -9.0 3.8 -5.2 -38.7 17.4
-21.2
ial
incom
e and
expen
ses
--------------------------------------------------------------------------------
--------
Profit 33.8 -0.3 33.5 46.1 3.7 49.7 223.6 14.3
237.9
befor
e
taxes
--------------------------------------------------------------------------------
--------
Income -8.2 -0.2 -8.4 -12.0 -0.9 -12.9 -54.5 -3.5
-58.0
taxes
--------------------------------------------------------------------------------
--------
Profit 25.6 -0.5 25.1 34.1 2.8 36.9 169.1 10.8
179.8
for
the
revie
w
perio
d
--------------------------------------------------------------------------------
--------
Attrib
utable
to:
--------------------------------------------------------------------------------
--------
Equity 25.6 -0.5 25.1 33.9 2.6 36.4 168.1 10.6
178.6
holde
rs of
the
paren
t
compa
ny
--------------------------------------------------------------------------------
--------
Non-co 0.0 0.0 0.0 0.3 0.2 0.5 1.0 0.2
1.2
ntroll
ing
inter
ests
--------------------------------------------------------------------------------
--------
--------------------------------------------------------------------------------
--------
Earnin 0.20 0.20 0.27 0.29 1.34
1.43
gs/sha
re,
EUR
--------------------------------------------------------------------------------
--------
Dilute 0.20 0.20 0.27 0.29 1.34
1.43
d
earni
ngs/sh
are,
EUR
--------------------------------------------------------------------------------
--------
1-3/2013 1-3/2012 1-12/2012
--------------------------------------------------------------------------------
----
Balanc Segment IFRIC IFRS Segment IFRIC IFRS Segment IFRIC
IFRS
e reporti 15 reporti 15 reporti 15
sheet ng adjust ng adjust ng adjust
, ments ments ments
EUR
milli
on
--------------------------------------------------------------------------------
----
Non-cu
rrent
asset
s
--------------------------------------------------------------------------------
----
Other 521.3 0.0 521.3 534.4 534.4 529.2
529.2
non-c
urrent
assets
--------------------------------------------------------------------------------
----
Deferr 46.0 7.3 53.3 51.0 13.4 64.4 40.7 9.1
49.8
ed tax
asset
s
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Curren
t
asset
s
--------------------------------------------------------------------------------
----
Invent 1,627.5 329.4 1,956.9 1,429.0 345.8 1,774.8 1,579.3 322.1
1,901.5
ories
------------------------------------------------------------------------------------
Trade 1,023.3 -40.7 982.5 1,116.8 -79.5 1,037.3 1,082.3 -66.8
1,015.5
and
other
receiv
ables
--------------------------------------------------------------------------------
----
Cash 130.3 0.0 130.3 209.3 209.3 175.7
175.7
and
cash
equiva
lents
--------------------------------------------------------------------------------
----
Total 3,348.3 296.0 3,644.3 3,340.5 279.7 3,620.2 3,407.2 264.5
3,671.6
asset
s
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Equity 1,005.4 -61.2 944.2 931.9 -68.6 863.3 1,069.3 -60.1
1,009.2
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Non-cu
rrent
liabi
lities
--------------------------------------------------------------------------------
----
Financ 459.7 0.0 459.7 564.1 564.1 517.1
517.1
ial
liabi
lities
--------------------------------------------------------------------------------
----
Other 124.9 7.2 132.1 168.2 168.2 133.1
133.1
non-c
urrent
liabil
ities
--------------------------------------------------------------------------------
----
Deferr 98.3 -2.5 95.8 81.9 -6.0 75.9 96.9 -7.5
89.4
ed tax
liabi
lities
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Curren
t
liabi
lities
--------------------------------------------------------------------------------
----
Financ 429.3 80.3 509.6 292.2 108.9 401.1 332.9 72.0
404.9
ial
liabi
lities
--------------------------------------------------------------------------------
----
Advanc 323.2 274.5 597.7 271.7 247.0 518.7 305.5 261.1
566.6
es
recei
ved
--------------------------------------------------------------------------------
----
Other 907.5 -2.2 905.3 1,030.5 -1.6 1,028.9 952.4 -1.1
951.3
curre
nt
liabi
lities
--------------------------------------------------------------------------------
----
Total 3,348.3 296.0 3,644.3 3,340.5 279.7 3,620.2 3,407.2 264.5
3,671.6
equit
y and
liabi
lities
--------------------------------------------------------------------------------
----
2. GROUP REPORTING, IFRS
2.1 Key figures, IFRS
3/13 3/12 Change 12/12
--------------------------------------------------------------------------------
Earnings/share, EUR 0.20 0.29 -31% 1.43
--------------------------------------------------------------------------------
Diluted earnings/share, EUR 0.20 0.29 -31% 1.43
--------------------------------------------------------------------------------
Equity/share, EUR 7.52 6.87 9% 8.02
--------------------------------------------------------------------------------
Average share price during the period, EUR 16.74 15.35 9% 14.90
--------------------------------------------------------------------------------
Share price at the end of the period, EUR 16.25 16.12 1% 14.78
--------------------------------------------------------------------------------
Market capitalization at the end of the 2,037.4 2,019.3 1% 1,853.2
period,
EUR million
--------------------------------------------------------------------------------
Weighted average share-issue adjusted number 125,383 125,270 0% 125,352
of shares outstanding, thousands
--------------------------------------------------------------------------------
Weighted average share-issue adjusted number 125,383 125,270 0% 125,352
of shares outstanding, thousands, diluted
--------------------------------------------------------------------------------
Share-issue adjusted number of shares 125,380 125,267 0% 125,384
outstanding at the end of the period,
thousands
--------------------------------------------------------------------------------
Net interest-bearing debt at the end of the 839.0 755.9 11% 746.2
period,
EUR million
--------------------------------------------------------------------------------
Return on investment, from the last 12 14.0 13.1 14.9
months, %
--------------------------------------------------------------------------------
Equity ratio, % 31.1 27.8 32.5
--------------------------------------------------------------------------------
Gearing ratio, % 88.9 87.6 73.9
--------------------------------------------------------------------------------
Gross capital expenditures, EUR million 9.6 13.6 -29% 44.6
--------------------------------------------------------------------------------
% of revenue 0.9 1.2 0.9
--------------------------------------------------------------------------------
Unrecognised order backlog at the end of the 4,291.9 4,385.3 -2% 4,245.1
period, EUR million
--------------------------------------------------------------------------------
of which order backlog outside Finland 2,406.3 2,356.0 2% 2,273.3
--------------------------------------------------------------------------------
Average number of personnel 25,009 25,821 -3% 25,833
--------------------------------------------------------------------------------
2.2 YIT Group figures by quarter, IFRS
EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/1
2
--------------------------------------------------------------------------------
Revenue, EUR million 1,035.2 1,098.4 1,218.9 1,103.6 1,284.9
--------------------------------------------------------------------------------
Operating profit, EUR million 35.3 55.0 67.5 63.4 73.1
--------------------------------------------------------------------------------
% of revenue 3.4 5.0 5.5 5.7 5.7
--------------------------------------------------------------------------------
Financial income, EUR million 1.4 1.4 2.8 0.1 1.2
--------------------------------------------------------------------------------
Exchange rate differences, EUR -0.6 -1.0 -1.6 -1.8 -1.3
million
--------------------------------------------------------------------------------
Financial expenses, EUR million -2.6 -5.7 -7.3 -2.6 -5.5
--------------------------------------------------------------------------------
Profit before taxes, EUR million 33.5 49.7 61.4 59.0 67.6
--------------------------------------------------------------------------------
% of revenue 3.2 4.5 5.0 5.4 5.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet total, EUR million 3,644.3 3,620.2 3,635.8 3,711.4 3,671.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings/share, EUR 0.20 0.29 0.37 0.37 0.39
--------------------------------------------------------------------------------
Equity/share, EUR 7.52 6.87 7.12 7.64 8.02
--------------------------------------------------------------------------------
Share price at the end of the 16.25 16.12 13.38 14.93 14.78
period, EUR
--------------------------------------------------------------------------------
Market capitalization, EUR million 2,037.4 2,019.3 1,677.7 1,872.0 1,853.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Return on investment, from the last 14.0 13.1 12.7 14.0 14.9
12 months, %
--------------------------------------------------------------------------------
Equity ratio, % 31.1 27.8 29.1 30.8 32.5
--------------------------------------------------------------------------------
Net interest-bearing debt at the 839.0 755.8 803.1 827.3 746.2
end of the period, MEUR
--------------------------------------------------------------------------------
Gearing ratio, % 88.9 87.6 89.7 86.1 73.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Gross capital expenditures, EUR 9.6 13.6 10.6 10.1 10.3
million
--------------------------------------------------------------------------------
% of revenue 0.9 1.2 0.9 0.9 0.8
--------------------------------------------------------------------------------
Unrecognised order backlog at the 4,291.9 4,385.3 4,409.3 4,462.0 4,245.1
end of the period, EUR million
--------------------------------------------------------------------------------
Personnel at the end of the period 24,923 25,703 26,255 25,788 25,283
--------------------------------------------------------------------------------
2.3 Consolidated income statement Jan 1 - March 31, 2013, IFRS
EUR million 1-3/13 1-3/12 Change 1-12/12
--------------------------------------------------------------------------------
Revenue 1,035.2 1,098.4 -6% 4,705.9
--------------------------------------------------------------------------------
of which activities outside Finland 608.5 639.2 -5% 2,777.3
--------------------------------------------------------------------------------
Other operating income and expenses -989.5 -1,032.6 -4% -4,402.1
--------------------------------------------------------------------------------
Share of results of associated companies -0.1 0.1 -153% 0.2
--------------------------------------------------------------------------------
Depreciation and impairments -10.3 -10.9 -5% -44.9
--------------------------------------------------------------------------------
Operating profit 35.3 55.0 -36% 259.1
--------------------------------------------------------------------------------
% of revenue 3.4 5.0 5.5
--------------------------------------------------------------------------------
Financial income 1.4 1.4 -3% 5.5
--------------------------------------------------------------------------------
Exchange rate differences -0.6 -1.0 -35% -5.8
--------------------------------------------------------------------------------
Financial expenses -2.6 -5.7 -55% -21.0
--------------------------------------------------------------------------------
Profit before taxes 33.5 49.7 -33% 237.9
--------------------------------------------------------------------------------
% of revenue 3.2 4.5 5.1
--------------------------------------------------------------------------------
Income taxes -8.4 -12.9 -35% -58.0
--------------------------------------------------------------------------------
Profit for the review period 25.1 36.9 -32% 179.8
--------------------------------------------------------------------------------
% of revenue 2.4 3.4 3.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to
--------------------------------------------------------------------------------
Equity holders of the parent company 25.1 36.4 -31% 178.6
--------------------------------------------------------------------------------
Non-controlling interests 0.0 0.5 -97% 1.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share attributable to the
equity holders of the parent company
--------------------------------------------------------------------------------
Earnings/share, EUR 0.20 0.29 -31% 1.43
--------------------------------------------------------------------------------
Diluted earnings/share, EUR 0.20 0.29 -31% 1.43
--------------------------------------------------------------------------------
2.4 Statement of comprehensive income Jan 1 - March 31, 2013, IFRS
EUR million 1-3/13 1-3/12 Change 1-12/1
2
--------------------------------------------------------------------------------
Profit for the review period 25.1 36.9 -32% 179.8
--------------------------------------------------------------------------------
Other comprehensive income
--------------------------------------------------------------------------------
Items that will not be reclassified to
profit/loss
--------------------------------------------------------------------------------
- Change in fair value of defined benefit 3.9 -100% 15.3
pension
--------------------------------------------------------------------------------
-- Deferred tax -1.1 -100% -4.2
--------------------------------------------------------------------------------
Items that may be reclassified subsequently to
profit/loss
--------------------------------------------------------------------------------
- Cash flow hedges 0.7 -0.1 -791% 0.6
--------------------------------------------------------------------------------
-- Deferred tax -0.2 0.0 -0.1
--------------------------------------------------------------------------------
- Change in fair value for available for sale -0.4
investments
--------------------------------------------------------------------------------
-- Deferrred tax 0.1
--------------------------------------------------------------------------------
- Change in translation differences 7.9 25.7 -69% 17.4
--------------------------------------------------------------------------------
Other comprehensive income, total 8.4 28.4 -70% 28.6
--------------------------------------------------------------------------------
Total comprehensive result 33.4 65.3 -49% 208.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to
--------------------------------------------------------------------------------
Equity holders of the parent company 33.5 65.0 -49% 207.3
--------------------------------------------------------------------------------
Non-controlling interest 0.0 0.3 -95% 1.2
--------------------------------------------------------------------------------
2.5 Consolidated balance sheet, IFRS
EUR million 3/13 3/12 Change 12/12
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Property, plant and equipment 107.5 110.9 -3% 110.6
--------------------------------------------------------------------------------
Goodwill 346.6 347.5 0% 346.6
--------------------------------------------------------------------------------
Other intangible assets 58.5 61.1 -4% 61.8
--------------------------------------------------------------------------------
Shares in associated companies 0.5 3.2 -84% 0.6
--------------------------------------------------------------------------------
Other investments 3.3 3.9 -14% 3.4
--------------------------------------------------------------------------------
Other receivables 4.8 7.8 -38% 6.3
--------------------------------------------------------------------------------
Deferred tax assets 53.3 64.4 -17% 49.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Inventories 1,956.9 1,774.8 10 % 1,901.5
--------------------------------------------------------------------------------
Trade and other receivables 982.5 1 037.3 -5 % 1,015.5
--------------------------------------------------------------------------------
Cash and cash equivalents 130.3 209.3 -38 % 175.7
--------------------------------------------------------------------------------
Total assets 3,644.3 3,620.2 1 % 3,671.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity and liabilities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity attributable to equity holders of the
parent company
--------------------------------------------------------------------------------
Share capital 149.2 149.2 0% 149.2
--------------------------------------------------------------------------------
Other equity 794.0 711.1 12% 856.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-controlling interest 1.0 2.9 -65% 3.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity 944.2 863.3 9% 1 009.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Deferred tax liabilities 95.8 75.9 26% 89.4
--------------------------------------------------------------------------------
Pension liabilities 45.2 63.3 -29% 52.4
--------------------------------------------------------------------------------
Provisions 49.6 55.1 -10% 48.5
--------------------------------------------------------------------------------
Borrowings 459.7 564.1 -19% 517.1
--------------------------------------------------------------------------------
Other liabilities 37.3 49.8 -25% 32.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current liabilities
--------------------------------------------------------------------------------
Advances received 597.7 518.7 15% 566.6
--------------------------------------------------------------------------------
Trade and other payables 860.7 965.7 -11% 896.1
--------------------------------------------------------------------------------
Provisions 44.6 63.2 -30% 54.9
--------------------------------------------------------------------------------
Current borrowings 509.6 401.1 27% 404.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 3,644.3 3,620.2 1% 3,671.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2.6 Consolidated statement of changes in equity (IFRS)
Attributable to equity holders of the parent company
--------------------------------------------------------------------------------
-----
EUR Share Legal Other Cumula Fair Treasu Retain Total Non-co
Total
milli capita reserv reserv tive value ry ed ntroll
equity
on l e e transl reserv shares earnin ing
ation e gs intere
differ st
ences
--------------------------------------------------------------------------------
-----
Equity 149.2 1.9 2.8 -23.4 -3.6 -9.7 801.5 918.7 2.5
921.1
on
Janua
ry 1,
2012
--------------------------------------------------------------------------------
-----
Define -37.0 -37.0
-37.0
d
benef
it
pensi
on,
re-me
asurem
ent
due
to
IAS
19
chang
e
--------------------------------------------------------------------------------
-----
Adjust 149.2 1.9 2.8 -23.4 -3.6 -9.7 764.5 881.7 2.5
884.1
ed
equit
y on
Janua
ry 1,
2012
--------------------------------------------------------------------------------
-----
Compre
hensiv
e
incom
e
--------------------------------------------------------------------------------
-----
Profit 36.5 36.5 0.5
37.0
for
the
perio
d
--------------------------------------------------------------------------------
-----
Profit -0.1 -0.1
-0.1
for
the
perio
d,
re-mea
sureme
nt due
to
IAS
19
chang
e
--------------------------------------------------------------------------------
-----
Other
compr
ehensi
ve
incom
e:
--------------------------------------------------------------------------------
-----
Change 3.9 3.9
3.9
in
fair
value
of
defin
ed
benefi
t
pensi
on,
re-
measur
ement
due
to
IAS
19
change
--------------------------------------------------------------------------------
-----
-Defer -1.1 -1.1
-1.1
red
tax
--------------------------------------------------------------------------------
-----
Cash -0.1 -0.1
-0.1
flow
hedge
s
--------------------------------------------------------------------------------
-----
- 0.0 0.0
0.0
Defer
red
tax
--------------------------------------------------------------------------------
-----
Change 25.9 25.9 -0.2
25.7
in
trans
lation
differ
ences
--------------------------------------------------------------------------------
-----
Compre 25.9 -0.1 39.2 65.0 0.3
65.3
hensiv
e
incom
e,
total
--------------------------------------------------------------------------------
-----
Transa
ctions
with
owner
s
--------------------------------------------------------------------------------
-----
Divide -87.7 -87.7
-87.7
nd
paid
--------------------------------------------------------------------------------
-----
Share- 1.4 1.4
1.4
based
incen
tive
scheme
s
--------------------------------------------------------------------------------
-----
Transa -86.3 -86.3
-86.3
ctions
with
owner
s,
total
--------------------------------------------------------------------------------
-----
Equity 149.2 1.9 2.8 2.5 -3.7 -9.7 717.4 860.3 2.9
863.3
on
March
31,
2012
--------------------------------------------------------------------------------
-----
Attributable to equity holders of the parent company
--------------------------------------------------------------------------------
--------
EUR Share Legal Other Cumula Fair Treasu Retain Total Non-co
Total
milli capita reserv reserv tive value ry ed ntroll
equity
on l e e transl reserv shares earnin ing
ation e gs intere
differ st
ences
--------------------------------------------------------------------------------
--------
Equity 149.2 1.9 2.8 -23.4 -3.6 -9.7 801.5 918.7 2.5
921.1
on
Janua
ry 1,
2012
--------------------------------------------------------------------------------
--------
Define -37.0 -37.0
-37.0
d
benef
it
pensi
on,
re-me
asurem
ent
due
to
IAS
19
chang
e
--------------------------------------------------------------------------------
--------
Adjust 149.2 1.9 2.8 -23.4 -3.6 -9.7 764.5 881.7 2.5
884.1
ed
equit
y on
Janua
ry 1,
2012
--------------------------------------------------------------------------------
--------
Compre
hensiv
e
incom
e
--------------------------------------------------------------------------------
--------
Profit 178.7 178.7 1.2
179.9
for
the
perio
d
--------------------------------------------------------------------------------
--------
Profit -0.1 -0.1
-0.1
for
the
perio
d,
re-mea
sureme
nt due
to
IAS
19
chang
e
--------------------------------------------------------------------------------
--------
Other
compr
ehensi
ve
incom
e:
--------------------------------------------------------------------------------
--------
Change 15.3 15.3
15.3
in
fair
value
of
defin
ed
benef
it
pensi
on,
re-me
asurem
ent
due
to
IAS
19
chang
e
--------------------------------------------------------------------------------
--------
-Defer -4.2 -4.2
-4.2
red
tax
--------------------------------------------------------------------------------
--------
Cash 0.6 0.6
0.6
flow
hedge
s
--------------------------------------------------------------------------------
--------
- -0.1 -0.1
-0.1
Defer
red
tax
--------------------------------------------------------------------------------
--------
Change -0.4 -0.4
-0.4
in
fair
value
for
availa
ble
for
sale
inves
tments
--------------------------------------------------------------------------------
--------
- 0.1 0.1
0.1
Defer
red
tax
--------------------------------------------------------------------------------
--------
Change 17.4 17.4
17.4
in
trans
lation
differ
ences
--------------------------------------------------------------------------------
--------
Compre 17.4 0.2 189.7 207.3 1.2
208.5
hensiv
e
incom
e,
total
--------------------------------------------------------------------------------
--------
Transa
ctions
with
owner
s
--------------------------------------------------------------------------------
--------
Divide -87.7 -87.7 -0.4
-88.1
nd
paid
--------------------------------------------------------------------------------
--------
Share- 1.0 0.5 3.3 4.8
4.8
based
incen
tive
scheme
s
--------------------------------------------------------------------------------
--------
Transa 1.0 0.5 -84.4 -82.9 -0.4
-83.3
ctions
with
owners
,
total
--------------------------------------------------------------------------------
--------
Equity 149.2 1.9 3.8 -6.1 -3.4 -9.2 869.8 1,005.9 3.3
1,009.2
on
Decem
ber
31,
2012
--------------------------------------------------------------------------------
--------
Attributable to equity holders of the parent company
--------------------------------------------------------------------------------
--------
EUR Share Legal Other Cumula Fair Treasu Retain Total Non-co
Total
milli capita reserv reserv tive value ry ed ntroll
equity
on l e e transl reserv shares earnin ing
ation e gs intere
differ st
ences
--------------------------------------------------------------------------------
--------
Equity 149.2 1.9 3.8 -6.1 -3.4 -9.2 869.8 1 005.9 3.3
1 009.2
on
Janua
ry 1,
2013
--------------------------------------------------------------------------------
--------
Compre
hensiv
e
incom
e
--------------------------------------------------------------------------------
--------
Profit 25.1 25.1 0.0
25.1
for
the
perio
d
--------------------------------------------------------------------------------
--------
Other 0.7 0.7
0.7
compr
ehensi
ve
incom
e:
--------------------------------------------------------------------------------
--------
Cash -0.2 -0.2
-0.2
flow
hedge
s
--------------------------------------------------------------------------------
--------
- 0.0 0.0
0.0
Defer red
tax
--------------------------------------------------------------------------------
--------
Change 0.0 0.0
0.0
in
fair
value
for
availa
ble
for
sale
inves
tments
--------------------------------------------------------------------------------
--------
- 0.7 0.7
0.7
Defer
red
tax
--------------------------------------------------------------------------------
--------
Change 7.9 7.9
7.9
in
trans
lation
differ
ences
--------------------------------------------------------------------------------
--------
Compre 7.9 0.5 25.1 33.5 0.0
33.4
hensiv
e
incom
e,
total
--------------------------------------------------------------------------------
--------
Transa
ctions
with
owner
s
--------------------------------------------------------------------------------
--------
Divide -94.0 -94.0 0.0
-94.0
nd
paid
--------------------------------------------------------------------------------
--------
Share- 0.7 0.7
0.7
based
incen
tive
scheme
s
--------------------------------------------------------------------------------
--------
Transa -93.4 -93.4 0.0
-93.4
ctions
with
owner
s,
total
--------------------------------------------------------------------------------
--------
Change
s in
owner
ship
share
s in
subsi
diarie
s
--------------------------------------------------------------------------------
--------
Change -2.9 -2.9 -2.3
-5.1
s in
group
owner
ship
shares
in
subsi
diarie
s - no
loss
of
contr
ol
--------------------------------------------------------------------------------
--------
Change -2.9 -2.9 -2.3
-5.1
s in
owner
ship
share
s in
subsi
diarie
s,
total
--------------------------------------------------------------------------------
--------
Equity 149.2 1.9 3.8 1.7 -2.9 -9.2 798.6 943.2 1.0
944.2
on
March
31,
2013
--------------------------------------------------------------------------------
--------
2.7 Consolidated cash flow statement
EUR million 1-3/13 1-3/12 Change 1-12/12
--------------------------------------------------------------------------------
Cash flow from
operating activities
--------------------------------------------------------------------------------
Net profit for the period 25.1 36.9 -32% 179.8
--------------------------------------------------------------------------------
Reversal of accrual-based items 7.9 42.0 -81% 127.5
--------------------------------------------------------------------------------
Change in working capital
--------------------------------------------------------------------------------
Change in trade and 50.1 22.4 124% 50.6
other receivables
--------------------------------------------------------------------------------
Change in inventories -42.7 -55.7 -23% -197.6
--------------------------------------------------------------------------------
Change in current liabilities -20.5 -2.2 832% 43.9
--------------------------------------------------------------------------------
Change in working capital, total -13.1 -35.6 -63% -103.1
--------------------------------------------------------------------------------
Interest paid -10.9 -11.4 -5% -35.4
--------------------------------------------------------------------------------
Other financial items, net -2.6 -6.2 -58% -9.9
--------------------------------------------------------------------------------
Interest received 1.3 1.1 18% 4.5
--------------------------------------------------------------------------------
Taxes paid -11.3 -23.9 -53% -42.0
--------------------------------------------------------------------------------
Net cash generated -3.6 3.0 121.5
from operating activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Acquisition of subsidiaries, -0.8 -5.0 -84% -7.3
net of cash
--------------------------------------------------------------------------------
Purchase of property, -3.2 -4.8 -33% -26.7
plant and equipment
--------------------------------------------------------------------------------
Purchase of intangible -1.3 -2.6 -50% -8.4
assets
--------------------------------------------------------------------------------
Increases in other 0.0 0.0 0.0
investments
--------------------------------------------------------------------------------
Disposal of subsidiaries, 0.0 0.0
net of cash
--------------------------------------------------------------------------------
Disposal of affiliated 2.9
companies
--------------------------------------------------------------------------------
Proceeds from sale of 1.4 0.4 255% 7.7
fixed assets
--------------------------------------------------------------------------------
Proceeds from sale of 0.0 0.1 -103% 0.7
other investments
--------------------------------------------------------------------------------
Net cash used in -3.9 -11.9 -67% -31.2
investing activities
--------------------------------------------------------------------------------
Operating cash flow -7.5 -9.0 -17% 90.4
after investments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from
financing activities
--------------------------------------------------------------------------------
Change in loan receivables 2.4 -8.1 -13.9
--------------------------------------------------------------------------------
Change in current 57.2 28.6 100% -34.9
liabilities
--------------------------------------------------------------------------------
Proceeds from 0.0 50.0 -100% 150.0
borrowings
--------------------------------------------------------------------------------
Repayments of -8.8 -58.8 -85% -136.6
borrowings
--------------------------------------------------------------------------------
Payments of financial -0.2 -0.1 109% -0.7
leasing debts
--------------------------------------------------------------------------------
Dividends paid and other distribution of assets -87.9 -88.1
--------------------------------------------------------------------------------
Net cash used in -37.4 11.6 -422% -124.2
financing activities
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and -44.9 2.6 -33.9
cash equivalents
--------------------------------------------------------------------------------
Cash and cash equivalents 174.6 204.8 -15% 204.8
at the beginning of the period
--------------------------------------------------------------------------------
Change in the fair value 0.6 2.0 -69% 3.8
of the cash equivalents
--------------------------------------------------------------------------------
Cash and cash equivalents 130.3 209.3 -38% 174.6
at the end of the period
--------------------------------------------------------------------------------
2.8 Accounting principles of the Interim report
YIT Corporation's interim report for January 1 - March 31, 2013 has been drawn
up in line with IAS 34: Interim Financial Reporting. The information presented
in the interim report has not been audited. In the interim report the figures
are presented in million euros doing the rounding on each line, which may cause
some rounding inaccuracies in column and total sums.
The consolidated interim report has been prepared in compliance with the
International Financial Reporting standards, and the principles for preparing
the interim report are the same as those used for preparing the financial
statements for 2012 except the changes in the following standards:
- IAS 19 (revised) Employee benefit: Standard includes changes to accounting
principles of defined benefit plans.
- IFRS 13 Fair value measurement: The standard defines fair value. It sets out
in a single standard a framework for measuring fair value and requirement for
disclosures about fair value measurements.
- IAS 1 (amendment) Presentation of statements of changes in equity: Group
presents components in other comprehensive income grouped to items that will
not be reclassified to profit or loss and to items that may be reclassified
subsequently to profit or loss. Changes in International accounting standard IAS 19 Employee benefits and the
restated corresponding period 2012
The Group adopted the new IAS 19 Employee benefits standard in January 1, 2013.
Standard includes changes to accounting principles of defined benefit plans.
The amendment eliminates the possibility to use the corridor approach and all
the actuarial gains and losses are recognised immediately in the statement of
other comprehensive income. The full net liability or net asset is recorded in
the balance sheet. The expected interest income on assets is calculated using
the same discount rate as calculating the present value of the defined benefit
obligation. The changes in fair value of defined benefit pension are recorded
in the statement of other comprehensive income where previously those were
included in the personnel expenses in the income statement.
The revised IAS 19 standard requires that the amendments have been applied
retrospectively to the reported financial statements. The impact on comparison
figures are presented cumulatively in tables below.
As a result of the change the Group's defined benefit liability was increased
by EUR 25.1 million, defined benefit asset was decreased by EUR 10.3 million,
shareholders' equity was decreased by EUR 26.2 million and the balance sheet
total was decreased by EUR 10.3 million in the balance sheet per December 31,
2012.
Consolidated Balance Sheet, EUR million Reported Impact of Restated
------------------------------------------------------------------------------
Group IAS 19 Group
------------------------------------------------------------------------------
IFRS Jan 1, 2012 IFRS
Jan 1, 2012 Jan 1, 2012
------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Non-current assets
------------------------------------------------------------------------------
Other non-current assets 538.1 -11.8 526.3
------------------------------------------------------------------------------
Deferred tax assets 60.3 60.3
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Current assets
------------------------------------------------------------------------------
Inventories 1,672.6 1,672.6
------------------------------------------------------------------------------
Trade and other receivables 1,027.3 1,027.3
------------------------------------------------------------------------------
Cash and cash equivalents 206.1 206.1
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total assets 3,504.5 -11.8 3,492.7
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity and Liabilities
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity 921.1 -37.0 884.1
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Non-current liabilities
------------------------------------------------------------------------------
Financial liabilities 522.9 522.9
------------------------------------------------------------------------------
Other non-current liabilities 128.5 39.9 168.4
------------------------------------------------------------------------------
Deferred tax liabilities 88.3 -14.7 73.6
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Current liabilities
------------------------------------------------------------------------------
Financial liabilities 423.6 423.6
------------------------------------------------------------------------------
Advances received 458.3 458.3
------------------------------------------------------------------------------
Other current liabilities 961.6 961.6
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity and Liabilities, total 3,504.5 -11.8 3,492.7
------------------------------------------------------------------------------
Income statement, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
--------------------------------------------------------------------------------
IFRS 1-3/12 IFRS
1-3/12 1-3/12
--------------------------------------------------------------------------------
Revenue 1,098.4 1,098.4
--------------------------------------------------------------------------------
Other operating income and expenses -1,032.3 -0.2 -1,032.5
--------------------------------------------------------------------------------
Depreciation -10.9 -10.9
--------------------------------------------------------------------------------
Operating profit 55.2 -0.2 55.0
--------------------------------------------------------------------------------
Financial income and expenses -5.2 -5.2
--------------------------------------------------------------------------------
Profit before taxes 49.9 -0.2 49.7
--------------------------------------------------------------------------------
Income taxes -12.9 0.0 -12.9
--------------------------------------------------------------------------------
Profit for the review period 37.0 -0.1 36.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 36.5 -0.1 36.4
--------------------------------------------------------------------------------
Non-controlling interests 0.5 0.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share attributable to the equity
holders of the parent company
--------------------------------------------------------------------------------
Earnings/share, EUR 0.29 0.29
--------------------------------------------------------------------------------
Diluted earnings/share, EUR 0.29 0.29
--------------------------------------------------------------------------------
Comprehensive income, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
-------------------------------------------------------------------------------- IFRS 1-3/12 IFRS
1-3/12 1-3/12
--------------------------------------------------------------------------------
Profit for the period 37.0 -0.1 36.9
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Change in fair value of defined benefit 3.9 3.9
pension, re-measurement due to IAS 19
change
--------------------------------------------------------------------------------
-Deferred tax -1.1 -1.1
--------------------------------------------------------------------------------
Cash flow hedges -0.1 -0.1
--------------------------------------------------------------------------------
-Deferred tax 0.0 0.0
--------------------------------------------------------------------------------
Change in translation differences 25.7 25.7
--------------------------------------------------------------------------------
Other group income and expenses, total 25.6 2.8 28.4
--------------------------------------------------------------------------------
Comprehensive income, total 62.6 2.7 65.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 62.3 2.7 65.0
--------------------------------------------------------------------------------
Non-controlling interests 0.3 0.3
--------------------------------------------------------------------------------
Consolidated Balance Sheet, EUR million Reported Impact of Restated
----------------------------------------------------------------------------
Group IAS 19 Group
----------------------------------------------------------------------------
IFRS 1-3/12 1-3/12 IFRS 1-3/12
----------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-current assets
----------------------------------------------------------------------------
Other non-current assets 546.1 -11.7 534.4
----------------------------------------------------------------------------
Deferred tax assets 64.4 64.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current assets
----------------------------------------------------------------------------
Inventories 1,774.8 1,774.8
----------------------------------------------------------------------------
Trade and other receivables 1,037.3 1,037.3
----------------------------------------------------------------------------
Cash and cash equivalents 209.3 209.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets 3,631.9 -11.7 3,620.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity and Liabilities
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity 897.6 -34.3 863.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-current liabilities
----------------------------------------------------------------------------
Financial liabilities 564.1 564.1
----------------------------------------------------------------------------
Other non-current liabilities 131.9 36.3 168.2
----------------------------------------------------------------------------
Deferred tax liabilities 89.5 -13.6 75.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current liabilities
----------------------------------------------------------------------------
Financial liabilities 401.1 401.1
----------------------------------------------------------------------------
Advances received 518.7 518.7
----------------------------------------------------------------------------
Other current liabilities 1,028.9 1,028.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity and Liabilities, total 3,631.9 -11.7 3,620.2
----------------------------------------------------------------------------
Income statement, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
--------------------------------------------------------------------------------
IFRS 1-6/12 IFRS
1-6/12 1-6/12
--------------------------------------------------------------------------------
Revenue 2,317.3 2,317.3
--------------------------------------------------------------------------------
Other operating income and expenses -2,173.0 -0.3 -2,173.3
--------------------------------------------------------------------------------
Depreciation -21.5 -21.5
--------------------------------------------------------------------------------
Operating profit 122.8 -0.3 122.5
--------------------------------------------------------------------------------
Financial income and expenses -11.3 -11.3
--------------------------------------------------------------------------------
Profit before taxes 111.5 -0.3 111.2
--------------------------------------------------------------------------------
Income taxes -27.9 0.1 -27.8
--------------------------------------------------------------------------------
Profit for the review period 83.6 -0.2 83.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 83.4 -0.2 83.2
--------------------------------------------------------------------------------
Non-controlling interests 0.2 0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share attributable to the equity
holders of the parent company
--------------------------------------------------------------------------------
Earnings/share, EUR 0.67 0.66
--------------------------------------------------------------------------------
Diluted earnings/share, EUR 0.67 0.66
--------------------------------------------------------------------------------
Comprehensive income, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
--------------------------------------------------------------------------------
IFRS 1-6/12 IFRS
1-6/12 1-6/12
--------------------------------------------------------------------------------
Profit for the period 83.6 -0.2 83.4
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Change in fair value of defined benefit 9.5 9.5
pension, re-measurement due to IAS 19
change
--------------------------------------------------------------------------------
-Deferred tax -2.7 -2.7
--------------------------------------------------------------------------------
Cash flow hedges -0.6 -0.6
--------------------------------------------------------------------------------
-Deferred tax 0.1 0.1
--------------------------------------------------------------------------------
Change in translation differences 6.0 6.0
--------------------------------------------------------------------------------
Other group income and expenses, total 5.5 6.8 12.3
--------------------------------------------------------------------------------
Comprehensive income, total 89.2 6.6 95.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 89.1 6.6 95.7
--------------------------------------------------------------------------------
Non-controlling interests 0.1 0.1
--------------------------------------------------------------------------------
Consolidated Balance Sheet, EUR million Reported Impact of Restated
----------------------------------------------------------------------------
Group IAS 19 Group
----------------------------------------------------------------------------
IFRS 1-6/12 1-6/12 IFRS 1-6/12
----------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-current assets
----------------------------------------------------------------------------
Other non-current assets 540.0 -11.1 528.9
----------------------------------------------------------------------------
Deferred tax assets 53.7 53.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current assets
----------------------------------------------------------------------------
Inventories 1,769.5 1,769.5
----------------------------------------------------------------------------
Trade and other receivables 1,114.3 1,114.3
----------------------------------------------------------------------------
Cash and cash equivalents 169.5 169.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets 3,646.9 -11.1 3,635.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity and Liabilities
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity 926.0 -30.5 895.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-current liabilities
----------------------------------------------------------------------------
Financial liabilities 549.9 549.9
----------------------------------------------------------------------------
Other non-current liabilities 131.9 31.5 163.4
----------------------------------------------------------------------------
Deferred tax liabilities 89.6 -12.1 77.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current liabilities
----------------------------------------------------------------------------
Financial liabilities 422.7 422.7
----------------------------------------------------------------------------
Advances received 558.1 558.1
----------------------------------------------------------------------------
Other current liabilities 968.8 968.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity and Liabilities, total 3,646.9 -11.1 3,635.8
----------------------------------------------------------------------------
Income statement, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
--------------------------------------------------------------------------------
IFRS 1-9/12 IFRS
1-9/12 1-9/12
--------------------------------------------------------------------------------
Revenue 3,421.0 3,421.0
--------------------------------------------------------------------------------
Other operating income and expenses -3,200.3 -0.5 -3,200.8
--------------------------------------------------------------------------------
Depreciation -34.2 -34.2
--------------------------------------------------------------------------------
Operating profit 186.4 -0.5 185.9
--------------------------------------------------------------------------------
Financial income and expenses -15.7 -15.7
--------------------------------------------------------------------------------
Profit before taxes 170.8 -0.5 170.3
--------------------------------------------------------------------------------
Income taxes -40.6 0.1 -40.5
--------------------------------------------------------------------------------
Profit for the review period 130.1 -0.3 129.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 129.7 -0.3 129.4
--------------------------------------------------------------------------------
Non-controlling interests 0.4 0.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share attributable to the equity
holders of the parent company
--------------------------------------------------------------------------------
Earnings/share, EUR 1.03 1.03
--------------------------------------------------------------------------------
Diluted earnings/share, EUR 1.03 1.03
--------------------------------------------------------------------------------
Comprehensive income, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
--------------------------------------------------------------------------------
IFRS 1-9/12 IFRS
1-9/12 1-9/12
--------------------------------------------------------------------------------
Profit for the period 130.1 -0.3 129.8
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Change in fair value of defined benefit 14.1 14.1
pension, re-measurement due to IAS 19
change
--------------------------------------------------------------------------------
-Deferred tax -4.0 -4.0
--------------------------------------------------------------------------------
Cash flow hedges -0.5 -0.5
--------------------------------------------------------------------------------
-Deferred tax 0.1 0.1
--------------------------------------------------------------------------------
Change in fair value for available for sale -0.7 -0.7
investments
--------------------------------------------------------------------------------
-Deferred tax 0.2 0.2
--------------------------------------------------------------------------------
Change in translation differences 21.3 21.3
--------------------------------------------------------------------------------
Other group income and expenses, total 20.4 10.2 30.6
--------------------------------------------------------------------------------
Comprehensive income, total 150.6 9.8 160.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 150.1 9.8 159.9
--------------------------------------------------------------------------------
Non-controlling interests 0.4 0.4
--------------------------------------------------------------------------------
Consolidated Balance Sheet, EUR million Reported Impact of Restated
----------------------------------------------------------------------------
Group IAS 19 Group
----------------------------------------------------------------------------
IFRS 1-9/12 1-9/12 IFRS 1-9/12
----------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-current assets
----------------------------------------------------------------------------
Other non-current assets 539.7 -10.9 528.8
----------------------------------------------------------------------------
Deferred tax assets 55.9 55.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current assets
----------------------------------------------------------------------------
Inventories 1,858.5 1,858.5
----------------------------------------------------------------------------
Trade and other receivables 1,118.2 1,118.2
----------------------------------------------------------------------------
Cash and cash equivalents 150.0 150.0
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total assets 3,722.3 -10.9 3,711.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity and Liabilities
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity 987.9 -27.3 960.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-current liabilities
----------------------------------------------------------------------------
Financial liabilities 541.7 541.7
----------------------------------------------------------------------------
Other non-current liabilities 121.1 27.3 148.4
----------------------------------------------------------------------------
Deferred tax liabilities 93.5 -10.9 82.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current liabilities
----------------------------------------------------------------------------
Financial liabilities 435.6 435.6
----------------------------------------------------------------------------
Advances received 593.6 593.6
----------------------------------------------------------------------------
Other current liabilities 948.9 948.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity and Liabilities, total 3,722.3 -10.9 3,711.4
----------------------------------------------------------------------------
Income statement, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
--------------------------------------------------------------------------------
IFRS 1-12/12 IFRS
1-12/12 1-12/12
--------------------------------------------------------------------------------
Revenue 4,705.9 4,705.9
--------------------------------------------------------------------------------
Other operating income and expenses -4,401.8 -0.1 -4,401.9
--------------------------------------------------------------------------------
Depreciation -44.9 -44.9
--------------------------------------------------------------------------------
Operating profit 259.2 -0.1 259.1
--------------------------------------------------------------------------------
Financial income and expenses -21.2 -21.2
--------------------------------------------------------------------------------
Profit before taxes 238.0 -0.1 237.9
--------------------------------------------------------------------------------
Income taxes -58.1 0.1 -58.0
--------------------------------------------------------------------------------
Profit for the review period 179.9 -0.1 179.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 178.7 -0.1 178.6
--------------------------------------------------------------------------------
Non-controlling interests 1.2 1.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share attributable to the equity
holders of the parent company
--------------------------------------------------------------------------------
Earnings/share, EUR 1.43 1.43
--------------------------------------------------------------------------------
Diluted earnings/share, EUR 1.43 1.43
--------------------------------------------------------------------------------
Comprehensive income, EUR million Reported Impact Restated
of
--------------------------------------------------------------------------------
Group IAS 19 Group
--------------------------------------------------------------------------------
IFRS 1-12/12 IFRS
1-12/12 1-12/12
--------------------------------------------------------------------------------
Profit for the period 179.9 -0.1 179.8
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Change in fair value of defined benefit 15.3 15.3
pension, re-measurement due to IAS 19
change
--------------------------------------------------------------------------------
-Deferred tax -4.2 -4.2
--------------------------------------------------------------------------------
Cash flow hedges 0.6 0.6
--------------------------------------------------------------------------------
-Deferred tax -0.1 -0.1
--------------------------------------------------------------------------------
Change in fair value for available for sale -0.4 -0.4
investments
--------------------------------------------------------------------------------
-Deferred tax 0.1 0.1
--------------------------------------------------------------------------------
Change in translation differences 17.4 17.4
--------------------------------------------------------------------------------
Other group income and expenses, total 17.6 11.0 28.6
--------------------------------------------------------------------------------
Comprehensive income, total 197.5 10.9 208.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent company 196.3 11.0 207.3
--------------------------------------------------------------------------------
Non-controlling interests 1.2 1.2
--------------------------------------------------------------------------------
Consolidated Balance Sheet, EUR million Reported Impact of Restated
------------------------------------------------------------------------------
Group IAS 19 Group
------------------------------------------------------------------------------
IFRS 1-12/12 1-12/12 IFRS 1-12/12
------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Non-current assets
------------------------------------------------------------------------------
Other non-current assets 539.5 -10.3 529.2
------------------------------------------------------------------------------
Deferred tax assets 49.8 49.8
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Current assets
------------------------------------------------------------------------------
Inventories 1,901.5 1,901.5
------------------------------------------------------------------------------
Trade and other receivables 1,015.5 1,015.5
------------------------------------------------------------------------------
Cash and cash equivalents 175.7 175.7
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total assets 3,682.0 -10.3 3,671.6
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity and Liabilities
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity 1,035.4 -26.2 1,009.2
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Non-current liabilities
------------------------------------------------------------------------------
Financial liabilities 517.1 517.1
------------------------------------------------------------------------------
Other non-current liabilities 108.0 25.1 133.1
------------------------------------------------------------------------------
Deferred tax liabilities 98.7 -9.3 89.4
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Current liabilities
------------------------------------------------------------------------------
Financial liabilities 404.9 404.9
------------------------------------------------------------------------------
Advances received 566.6 566.6
------------------------------------------------------------------------------
Other current liabilities 951.3 951.3
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Equity and Liabilities, total 3,682.0 -10.3 3,671.6
------------------------------------------------------------------------------
Currency exchange rates used in the Interim report
Average rate Average rate Balance sheet Balance sheet
Jan-March, Jan-March, rate rate
2013 2012 March 31, 2013 March 31, 2012
--------------------------------------------------------------------------------
1 EUR = CZK 25.5690 25.0830 25.7400 24.7300
--------------------------------------------------------------------------------
DKK 7.4588 7.4350 7.4553 7.4399
--------------------------------------------------------------------------------
HUF 296.7100 296.8900 304.4200 294.9200
--------------------------------------------------------------------------------
MYR 4.0685 4.0122 3.9650 4.0916
--------------------------------------------------------------------------------
NOK 7.4308 7.5870 7.5120 7.6040
--------------------------------------------------------------------------------
PLN 4.1558 4.2332 4.1804 4.1522
--------------------------------------------------------------------------------
RUB 40.1446 39.5504 39.7617 39.2950
--------------------------------------------------------------------------------
SEK 8.4918 8.8531 8.3553 8.8455
--------------------------------------------------------------------------------
SGD 1.6339 1.6573 1.5900 1.6775
--------------------------------------------------------------------------------
USD 1.3198 1.3107 1.2805 1.3356
--------------------------------------------------------------------------------
LTL 3.4528 3.4528 3.4528 3.4528
--------------------------------------------------------------------------------
LVL 0.6997 0.6985 0.7017 0.7003
--------------------------------------------------------------------------------
2.9 Definitions of key financial figures
Return on Group's profit before taxes + interest expenses + other financial
investment expenses +/- exchange rate differences x 100
(ROI %) = Balance sheet total - capitalised interest - non-interest bearing
liabilities (average)
--------------------------------------------------------------------------------
Segment's Tangible and intangible assets + goodwill + shares in associated
operative companies + investments + inventories + trade receivables + other
invested non-interest bearing operational receivables *) - provisions -
capital = trade payables - advances received - non-interest bearing
liabilities *)
*) excl. items associated with taxes, distribution of profit and
financial items
--------------------------------------------------------------------------------
Return on Segment's operating profit + interest included in operating profit
operative Segment's operative invested capital (average)
invested
capital (%)
=
--------------------------------------------------------------------------------
Equity ratio Equity + non-controlling interest x 100
(%) = Balance sheet total - advances received
--------------------------------------------------------------------------------
Gearing Interest-bearing liabilities - cash and cash equivalents x 100
ratio (%) = Shareholder's equity + non-controlling interest
--------------------------------------------------------------------------------
Segment Net profit for the period (attributable for equity holders),
reporting, segment reporting
earnings / Share issue-adjusted average number of outstanding shares during
share (EUR) the period
=
--------------------------------------------------------------------------------
Group IFRS Net profit for the period (attributable for equity holders), group
reporting, reporting
earnings/ Share issue-adjusted average number of outstanding shares during
share (EUR) the period
=
--------------------------------------------------------------------------------
Equity/share Shareholders' equity
(EUR) = Share issue-adjusted average number of outstanding shares at the
end of period
--------------------------------------------------------------------------------
Market (Number of shares - treasury shares) x share price on the closing
capitalizat date by share series
ion =
--------------------------------------------------------------------------------
2.10 Financial risk management
Financial risks include liquidity, interest rate, currency and credit risk, and
their management is a part of the Group's treasury policy. The Board of
Directors has approved this policy. The Group Treasury is responsible for the
practical implementation of the policy in association with the business
segments and units.
The Group's strategic financial targets guide the use and management of the
Group's capital. Achieving the strategic targets is supported by maintaining an
optimum Group capital structure. Capital structure is mainly influenced by
controlling investments and the amount of working capital tied to business
operations.
A more detailed account of financial risks has been published in the notes to
the financial statements for 2012.
2.11 Unusual items affecting operating profit
EUR million 1-3/13 1-3/12 Change 1-12/12
--------------------------------------------------------------------
Building Services Northern Europe 2,8 -5,8
--------------------------------------------------------------------
Building Services Central Europe -0,9
--------------------------------------------------------------------
International Construction Services 7,0
--------------------------------------------------------------------
YIT Group, total 2,8 0,3
--------------------------------------------------------------------
In Building Services Northern Europe cost adjustments will continue in 2013.
Approximately EUR 2.8 million adjustment costs were entered during the first
quarter.
Building Services Northern Europe entered costs related to the reorganization
of operations amounted to approximately EUR 3 million during the fourth
quarter.
The operating profit for International Construction Services for the third
quarter of 2012 was improved by the cancellation of a EUR 7.0 million cost
provision due to the ammonia issue in St. Petersburg. YIT made a provision of
EUR 10.0 during the third quarter of 2011 to cover the costs of rectifying the
problem.
YIT started the restructuring of operations in Poland during the second quarter
of 2012 and made a write-down of EUR 0.9 million in goodwill in the third
quarter of 2012 as the result.
During the second quarter of 2012, the operating profit for Building Services
Northern Europe was burdened by a non-recurring expense of EUR 2.8 million
associated with the final financial report of a customer project completed in
2011.
2.12 Business combinations and disposals
There have been no acquisitions or disposals in 2013.
2.13 Changes in property, plant and equipment
EUR million 1-3/13 1-3/12 Change 1-12/12
------------------------------------------------------------------------------
Carrying value at the beginning of the period 110.8 110.8 0% 110.8
------------------------------------------------------------------------------
Translation difference change -0.1 0.0 1.2
------------------------------------------------------------------------------
Increase 3.5 4.7 -25% 27.7
------------------------------------------------------------------------------
Increase through acquisitions 0.0 0.3 -97% 0.5
------------------------------------------------------------------------------
Decrease -0.9 -0.3 187% -4.2
------------------------------------------------------------------------------
Decrease through disposals 0.0
------------------------------------------------------------------------------
Depreciation and value adjustments -5.8 -5.9 -1% -23.8
------------------------------------------------------------------------------
Reclassifications -0.1 1.3 -1.6
------------------------------------------------------------------------------
Carrying value at the end of the period 107.5 110.9 -3% 110.6
------------------------------------------------------------------------------
2.14 Inventories
EUR million 3/13 3/12 Change 12/12
--------------------------------------------------------------------------------
Raw materials and consumables 37.3 31.0 20% 36.2
--------------------------------------------------------------------------------
Work in progress 899.4 880.4 2% 894.8
--------------------------------------------------------------------------------
Land areas and plot owning companies 690.6 643.1 7% 673.5
--------------------------------------------------------------------------------
Shares in completed housing and real estate 239.6 147.1 63% 232.0
companies
--------------------------------------------------------------------------------
Advance payments 89.0 70.4 -26% 64.1
--------------------------------------------------------------------------------
Other inventories 1.1 2.5 -57% 0.9
--------------------------------------------------------------------------------
Total inventories 1,956.9 1,774.8 10% 1,901.5
--------------------------------------------------------------------------------
2.15 Notes on equity
Share capital and share Number Share capital (EUR Treasury
premium account of outstanding million) shares
shares (EUR
million)
--------------------------------------------------------------------------------
January 1, 2013 125 383 845 149.2 -9.2
--------------------------------------------------------------------------------
Return of treasury shares, Jan -3 726
1-March 31, 2013
--------------------------------------------------------------------------------
March 31, 2013 125 380 119 149.2 -9.2
--------------------------------------------------------------------------------
2.16 Borrowings and Fair Value
EUR million 3/2013 3/2013 12/12 12/12
--------------------------------------------------------------------------------
Fair value Carrying Fair value Carrying
value value
--------------------------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------------------------
Bonds 267.4 273.1 320.9 330.3
--------------------------------------------------------------------------------
Loans from credit 86.6 77.5 88.4 93.9
institutions
--------------------------------------------------------------------------------
Pension loans 102.9 95.2 104.6 99.1
--------------------------------------------------------------------------------
Other loans 2.2 2.0 2.6 2.9
--------------------------------------------------------------------------------
Non-current liabilities, 459.1 447.8 516.5 526.2
total
--------------------------------------------------------------------------------
3/2013 3/2013 12/12 12/12
---------------------------------------------------------------------------
EUR million Fair value Carrying value Fair value Carrying value
---------------------------------------------------------------------------
Current liabilities
---------------------------------------------------------------------------
Bonds 57.1 56.3 7.1 6.9
---------------------------------------------------------------------------
The fair values of bonds are based on the market price at the closing date. The
fair values of other non-current loans are based on discounted cash flows.
Discount rate is defined to be the rate YIT Group was to pay for an equivalent
external loans at the year-end. It consist of risk free market rate and company
and maturity related risk premium of 0.80-4.80% (0.80-4.00%) p.a.
Fair value estimation
Group measures the fair value measurement hierarchy as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable
market data.
Following table presents the group's assets and liabilities that are measured
at fair value and their levels.
Assets March 31, 2013
----------------------------------------------------------------------------
EUR million Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------
Available-for-sale investments 2.1 1.3 3.3
----------------------------------------------------------------------------
Derivatives (hedge accounting not applied) 0.4 0.4
----------------------------------------------------------------------------
Total assets 2.1 0.4 1.3 3.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities March 31, 2013
----------------------------------------------------------------------------
EUR million Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------
Derivatives (hedge accounting not applied) 0.0 9.8 0.0 9.8
----------------------------------------------------------------------------
Derivatives (hedge accounting applied) 4.0 4.0
----------------------------------------------------------------------------
Total liabilities 0.0 13.8 0.0 13.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Assets December 31, 2012
----------------------------------------------------------------------------
EUR million Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------
Available-for-sale investments 1.6 1.3 2.9
----------------------------------------------------------------------------
Derivatives (hedge accounting not applied)
----------------------------------------------------------------------------
Total assets 1.6 1.3 2.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities December 31, 2012
----------------------------------------------------------------------------
EUR million Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------
Derivatives (hedge accounting not applied) 11.4 11.4
----------------------------------------------------------------------------
Derivatives (hedge accounting applied) 4.7 4.7
----------------------------------------------------------------------------
Total liabilities 16.1 16.1
----------------------------------------------------------------------------
Changes in level 3 instruments:
EUR million Assets Liabilities Assets Liabilities
03/13 03/13 12/12 12/12
--------------------------------------------------------------------------------
Opening balance sheet 1.3 1.3
--------------------------------------------------------------------------------
Transfers into/from level 3
--------------------------------------------------------------------------------
Purchases and sales 0.0
--------------------------------------------------------------------------------
Gains and losses recognised in
profit or loss
--------------------------------------------------------------------------------
Gains and losses recognised in
comprehensive profit or loss
--------------------------------------------------------------------------------
Closing balance 1.3 1.3
--------------------------------------------------------------------------------
2.17 Change in contingent liabilities and assets and commitments
EUR million 3/13 3/12 Change 12/12
--------------------------------------------------------------------------------
Collateral given for own commitments
--------------------------------------------------------------------------------
- Corporate mortgages 10.8 30.2 -64% 29.3
--------------------------------------------------------------------------------
- Other pledged assets
--------------------------------------------------------------------------------
Other commitments to associated companies 7.0 7.0 0% 7.0
--------------------------------------------------------------------------------
Other commitments
--------------------------------------------------------------------------------
- Repurchase commitments 363.1 286.7 27% 349.3
--------------------------------------------------------------------------------
- Operating leases 333.9 320.2 4% 355.0
--------------------------------------------------------------------------------
- Rental guarantees for clients 1.5 1.9 -19% 2.1
--------------------------------------------------------------------------------
- Other contingent liabilities 1.3 1.4 -8% 2.0
--------------------------------------------------------------------------------
- Guarantees given 0.0 0.0
--------------------------------------------------------------------------------
Liability under derivative contracts
--------------------------------------------------------------------------------
- Value of underlying instruments
--------------------------------------------------------------------------------
-- Interest rate derivatives 575.8 355.7 62% 579.6
--------------------------------------------------------------------------------
-- Foreign exchange derivatives 155.6 150.8 3% 220.4
--------------------------------------------------------------------------------
-- Commodity derivatives 1.4 4.4 -68% 1.9
--------------------------------------------------------------------------------
- Market values
--------------------------------------------------------------------------------
-- Interest rate derivatives -12.1 -12.8 -5% -13.6
--------------------------------------------------------------------------------
-- Foreign exchange derivatives -0.4 -0.8 -50% -1.6
--------------------------------------------------------------------------------
-- Commodity derivatives -0.9 -0.3 200% -0.9
--------------------------------------------------------------------------------
YIT Corporation's guarantees on behalf of its 1,496.1 1,584.7 -6% 1,537.3
subsidiaries
--------------------------------------------------------------------------------
2.18 Transactions with associated companies and joint ventures
EUR million 1-3/13 1-3/12 Change 1-12/12
------------------------------------------------------------
Sales 14.6 12.9 13% 70.0
------------------------------------------------------------
Purchases 0.0 0.0 0.1
------------------------------------------------------------
Trade and other receivables 0.0 0.0 0.1
------------------------------------------------------------
Trade and other liabilities 0.0 0.0 0.0
------------------------------------------------------------
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