YIT - Company Announcement

YIT’s strategic focus areas unchanged – new competitiveness programme to support achieving the financial targets

Helsinki, Finland, 2014-09-12 07:30 CEST (GLOBE NEWSWIRE) -- 

YIT CORPORATION       STOCK EXCHANGE RELEASE              SEPTEMBER 12, 2014 AT
8:30 A.M. 

YIT's strategic focus areas unchanged - new competitiveness programme to
support achieving the financial targets 

YIT's Board of Directors has decided to keep the company's strategic focus
areas unchanged. The weakened macroeconomic outlook in Russia and Finland
underlines the importance of sufficient financial operating space. The
implementation of the strategy and reaching the financial targets are supported
by launching a Group-wide competitiveness programme, under which short-term
targets have been defined for 2015 and 2016. The long-term financial targets
remain unchanged. 

Growth from self-developed and co-operation projects, the role of financial
operating space is emphasised 

In the Housing segment, YIT pursues growth through self-developed projects. The
development of the operating environment guides the volume and geographical
focus of residential start-ups. In housing construction, success depends on
having an attractive and reasonably priced product paired with excellent
customer experience. 

In the Business Premises and Infrastructure segment, the aim is to increase the
share of projects where the added value produced by YIT for the customer is
high. Concepts, co-operation projects and special expertise play a key role in
this regard. When launched, the Tripla project in the Central Pasila district
of Helsinki, Finland, will contribute substantially to revenue from 2016
onwards. 

In order to even out cyclicality, the weighting of Central Eastern Europe will
be increased as the third geographic pillar in parallel with Finland and
Russia. 

The significance of financial operating space is emphasised in a changing
operating environment. The actions to improve capital efficiency continue
according to the ongoing capital release program. Of the cash flow obtained
through increasing capital efficiency, approximately EUR 250 million will be
used to reduce debt. In Russia, capital turnover will be further improved,
which will result in a reduction in the amount of invested capital. 

Group-wide competitiveness programme to support the strategy

The implementation of the strategy and reaching of financial targets will be
supported by a Group-wide competitiveness programme. The programme's goals are
higher project profitability, streamlining operating methods and strong cash
flow. 

New short-term targets

In the short term, the focus of operations will be on improving capital
efficiency and cost-effectiveness rather than growth. YIT's Board of Directors
has set short-term targets for the Group to achieve by the end of 2016: 

  -- Revenue growth 0-5% annually (segment reporting)
  -- Return on investment 15% (segment reporting)
  -- Net debt under EUR 600 million (IFRS)

The setting of the short-term targets takes into account the weakened
macroeconomic outlook. The development of business functions will continue
according to the long-term targets. 

Long-term financial targets unchanged

YIT's Board of Directors has kept the Group's long-term financial targets
unchanged: 

  -- Revenue growth 5-10% annually on average 
  -- Return on investment 20%
  -- Sufficient operating cash flow after investments for dividend payout and
     the reduction of debt
  -- Equity ratio 40%
  -- Dividend payout 40-60% of net profit for the period

The target levels are based on figures reported by the company based on
percentage of completion (segment reporting). 

YIT's strategy and financial targets will be described in more detail at YIT's
Capital Markets Day, which will be arranged on September 25, 2014, in Helsinki,
Finland. For additional information, please visit YIT's Investors site at
http://www.yitgroup.com/investors. 

For additional information, please contact:

Kari Kauniskangas, President and CEO, YIT Corporation, tel. +358 40 570 1313,
kari.kauniskangas@yit.fi 

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




YIT CORPORATION

Sanna Kaje

Vice President, Investor Relations

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



YIT is a construction industry leader. We create better living environments in
Finland, Russia, the Baltic countries, the Czech Republic and Slovakia. Over
100 years of experience have secured for us a strong market position: We are
the largest housing developer and one of the largest business premises and
infrastructure developers in Finland, and the most significant foreign housing
and area developer in Russia.  Our vision is to stay one step ahead - while
caring for our customers, partners and personnel. We have more than 6,000
employees in seven countries. In 2013, our revenue amounted to nearly EUR 1.9
billion. Our share is listed on Nasdaq OMX Helsinki. www.yitgroup.com