Focus on profitable growth during the next few years
Growth
Growth in Russia
In Russia, the aim is to increase revenue by 50 per cent annually on average during the 2006–2009 period. Residential demand will grow hand in hand with good income development, and the office construction market is going strong. Increase in the number of foreign companies creates demand for Western building equipment systems and industry competence as well as maintenance partnerships.
YIT is the largest foreign-owned housing construction company in Russia. Residential development projects will be stepped up by strengthening YIT's presence in the cities where the company already operates and by continuing to expand to new Russian metropolises. Business premise and logistics property development projects will be initiated in St. Petersburg. Building equipment services will be increased in St. Petersburg and Moscow. Industrial service offering will be expanded in the St. Petersburg region, particularly for Western customers.
Gaining a larger market share in building equipment services
YIT is the largest provider of building equipment system services in the Nordic countries and Lithuania. Yet the market is very fragmented and most of the competition comes from small companies. The aim is to take a larger market share throughout the area of operations, particularly in the Nordic countries and additionally in the Baltic countries and Russia. The service portfolio will be complemented both organically and through acquisitions.
Outsourcing of industrial maintenance in Finland
Outsourcing is expected to increase in Finnish industry. Structural changes in the forest industry, in particular, are opening up opportunities for growth. YIT’s strategic objective is to expand operations by taking on technical maintenance functions outsourced by industry.
New geographic areas
During the strategy period, YIT aims to launch residential development projects in Central Eastern Europe, where the need for improving living conditions resembles the situation in Russia. Expansion is sought through joint ventures or acquisitions. In addition, opportunities for expanding the offering of building equipment system services to Western Europe through acquisitions will be explored during the strategy period.
Profitability
Longer value chain, longer agreements
Business operations will focus on projects extending over the entire value chain and long-term service agreements. With YIT being responsible for the entire service chain from planning and land acquisition to sales and maintenance, we are able to utilise our extensive competence to our customers' benefit. Consistent cooperation in the maintenance of buildings, roads or industrial plants, for instance, makes it possible to smooth the collaboration and adapt the services according to the customer's business and needs.
Social changes create needs for life cycle projects where the service provider assumes responsibility for the investment as a whole, including its service life. Interest in the development of complete residential areas is on the rise. There is a need for cooperation between the public and private sectors. In the wake of climate change, more attention will be paid to the total life cycle cost and energy efficiency.
Efficiency of YIT's own operations
YIT's competitive edge and profitability will be improved by means of, e.g., efficient processes, project management, continuous coaching of competent employees and development of procurement activities. The company will be selective in tender-based construction and avoid exceptional or high-risk projects.
Updated May 28, 2008
InvestorRelations@yit.fi
