SRV Yhtiöt Oyj - Company Announcement

SRV updates its strategic objectives

Espoo, Finland, 2015-08-06 07:29 CEST (GLOBE NEWSWIRE) -- SRV GROUP PLC    
STOCK EXCHANGE RELEASE     6 AUGUST 2015, AT 8:29 AM 

SRV updates its strategic objectives

At its meeting on 5 August 2015, SRV's Board of Directors decided to update the
company's strategic objectives for 2015-2019. 

According to the new objectives, SRV aims to increase its operating profit
margin to over 8 per cent by the end of the strategy period, instead of the
earlier announced target of 6 per cent. The target for return on equity remains
unchanged at no less than 15 per cent, but in the revised objectives the
company intends to achieve it by the end of the strategy period. SRV seeks to
increase the return on investment of International Operations to at least 15
per cent by the end of the strategy period. The earlier objective was to
increase the average annual revenue of International Operations to about EUR
100 million.  The new objective for the dividend payment is 30-50 per cent of
the annual result, taking into account the capital needs of business
operations, instead of the earlier announced figure of 30 per cent. 

The achievement of the set strategic objectives is based on weak but steady
economic growth in Finland and Russia's economy stabilizing at its current
level. In addition, substantial growth in SRV's developer-contracted projects
is required. 

“Our operating environment changed in the first half of the year, especially in
Russia. Although our ongoing projects in Russia are progressing well and in
line with plans, general uncertainty in the country unavoidably impacts on our
objectives for the next few years. On the other hand, we are in a better
position to improve our earnings performance in the near future thanks to our
ongoing large-scale projects in Finland - such as REDI in Kalasatama,
Niittykumpu metro centre and yesterday announced Fennovoima nuclear  power
plant project - and our record-high order books.  SRV can always be counted on
to pay steady dividends, and our updated financial objectives are directly
evident in our new target for dividend payments,” says Juha Pekka Ojala,
President & CEO. 

SRV published its strategic objectives for 2015-2019 in February 2014. This
update focused primarily on financial objectives. 

Further information:

Juha Pekka Ojala, President & CEO, tel. +358 (0)40 733 4173
Ilkka Pitkänen, CFO, tel. +358 (0)40 667 0906
Päivi Kauhanen, Vice President, Communications, tel. +358 (0)50 598 9560

www.srv.fi