Changes in financial targets
The YIT Group's strategic financial target levels were confirmed during a review of the Group's strategy in 1998. The target levels were amanded due to review of the strategy in 2002 and due to a major acquisition of Building Systems operations in 2003. The targets were amanded also in 2004, 2005 and 2006 strategy reviews.
Strategic target in 1998
The YIT Group's strategic financial target levels were confirmed during a review of the Group's strategy in 1998 as follows: 10–15 per cent for the average annual growth in net sales, 18 per cent for return on investment and 45 per cent for the equity ratio. The target for the dividend payout was set to 30–50 per cent of the net profit for the year after taxes and minority interests.
Review of the strategy in 2002
In August 2002, the Board of Directors confirmed the same targets for the strategic period from 2003 to 2005 apart from the equity ratio which was set to 40 per cent. The lower equity ratio better matches the growth and return on investment targets set for the Group.
Review of the strategy in 2003
On July 4, 2003, as a consequence of the big acquisition of the Nordic Building Systems operations YIT redefined the target level for annual growth in net sales to be 5–10 per cent. Other financial target levels were kept unchanged for the strategic period from 2004 to 2006.
Review of the strategy in 2004
During a review of the Group's strategy in September 2004, the target level for return on investment was raised from 18 to 20 per cent. The target level for the equity ratio was lowered from 40 to 35 per cent. The growth target for net sales and the target for dividends remained unchanged for the strategic period from 2005 to 2007. The strategic target levels were amended to better match the Group's current structure.
Review of the strategy in 2005
YIT Corporation’s Board of Directors amended the Group’s financial target levels on September 21, 2005. The revised financial target levels correspond to the strategic emphases set for business operations. The revenue growth target was bolstered from 5-10 per cent to 10 per cent annually on average. The target level for return on investment was raised from 20 to 22 per cent. The target for the dividend payout ratio was increased from 30-50 to 40-60 per cent. The target level for the equity ratio was kept at 35 per cent.
Review of the strategy in 2006
On September 19, 2006, YIT Corporation’s Board of Directors confirmed the financial target levels for the strategic period from 2007 - 2009. A Group-level target for the operating profit margin (EBIT) was set for the first time. The operating profit target that was set is 9 per cent of revenue. The other financial target levels were not amended.
Review of the strategy in 2007
On September 25, 2007,YIT Corporation’s Board of Directors confirmed the Group’s strategy and financial targets unchanged for the period 2008–2010.
Updated October 18, 2006
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