YIT - Company Announcement

YIT reorganises operations in Russia and recognises EUR 10.4 million of non-recurring costs

Helsinki, Finland, 2015-10-16 07:30 CEST (GLOBE NEWSWIRE) -- YIT CORPORATION   
       STOCK EXCHANGE RELEASE     OCTOBER 16, 2015 AT 08:30 A.M. 



YIT reorganises operations in Russia and recognises EUR 10.4 million of
non-recurring costs 

In line with the strategy, YIT is reducing its risk level in Russia by
decreasing the production volume to match current demand. YIT will continue to
operate in all current locations, but to increase flexibility and to ensure
cost-efficiency and competitiveness, the operations are reorganised. 

The division structure of YIT's Russian operations will be revised. As of
January 1, 2016, the divisions will be St. Petersburg, Moscow (City and region)
and Russian regions (Kazan, Rostov-on-Don, Tyumen and Yekaterinburg). Part of
the support functions will be centralised to serve all divisions. In addition,
a separate YIT Service Russia business unit will be established to better
exploit the opportunities in serving the over 20,000 customers. The business
unit is responsible for the maintenance of the delivered YIT projects in all
operating cities. All projects under construction will continue as planned, and
the financial reporting will continue as is on the Housing Russia segment
level. 

In connection to the reorganisation, YIT targets to reduce fixed costs related
to the Russian operations to match the decrease in sales and the production
volume. The number of employees is estimated to decrease by a further
approximately 200. The targeted annual cost savings from the measures announced
now and in January 2015 are estimated to total around EUR 10 million. A EUR 2.7
million non-recurring cost will be recorded in the 2015 third quarter results
related to the restructuring of the Russian operations. 

In addition to the restructuring measures, YIT recognises a EUR 7.7 million
impairment charge in the 2015 third quarter results related to development
costs of projects in the Moscow region that YIT has decided not to implement. 

As for new plot investments and apartment start-ups, the plan is to maintain a
production volume that will enable profitable business and positive cash flow
in all current operating cities. At the same time, the target is to maintain
readiness to increase the production when the operating environment allows it. 

YIT will publish financial information on the development of the Russian
operations in its Interim Report on October 29, 2015. 



For additional information, please contact:

Sanna Kaje, Vice President, Investor Relations and M&A, YIT Corporation, tel.
+358 50 390 6750, sanna.kaje@yit.fi 
Timo Lehtinen, CFO, YIT Corporation, tel. +358 45 670 0626, timo.lehtinen@yit.fi





YIT CORPORATION

Sanna Kaje
Vice President, Investor Relations and M&A



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, Slovakia and Poland.
Over 100 years of experience have secured 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
taking care of our customers, partners and personnel. We have nearly 6,000
employees in eight countries. In 2014, our revenue amounted to around EUR 1.8
billion. Our share is listed on NASDAQ OMX Helsinki. www.yitgroup.com