Preliminary long-term financial targets
- Return on capital employed of more than 12 percent (ROCE >12%)
- Equity ratio above 40 percent
- Positive cash flow after dividends
- Annually growing dividend per share
To be specified in the on-going strategy process and published later this year.
Financial targets and the outcome in 2017
YIT confirmed the financial targets and specified the cash flow target on September 26, 2016. Going forward, the cash flow target was operating cash flow after investment sufficient for paying dividends. Previously, the company had communicated that the target is to have sufficient operating cash flow after investment for paying dividends and reducing debt. However, the aim was not to increase the net debt level.The surplus of cashflow was intended to be used to accelerate the growth. At the same time, the improvement of the key figures was expected to be realised primarily through improvement of the company’s profitability and operative result. Other long-term targets remained unchanged.
LONG-TERM FINANCIAL TARGETS FOR YIT IN 2017
- Annual revenue growth 5-10 per cent on average
- Return on investment of 15 per cent
- Operating cash flow after investments sufficient for paying dividends
- Equity ratio of 40 per cent
- Dividend payout of 40 to 60 per cent of net profit for the period
The target levels are based on figures reported by the company on the basis of the percentage of completion (POC).
Actual figures 2007-2017
|Revenue growth, %||13||6||-12||9||16||3||-5||-3*||-8** 8***||7|
|Return on investment, %||26.2||17.5||10.9||14.4||12.0||14.4||10.3||7.7||5.3 4.7||8.8|
|Operating cash flow
|Equity ratio, %||36.7||30.7||33.8||31.9||30.2||34.5||37.8||32.4||35.5 31.5||35.1|
|Dividend payout, %||45.2||47.6||74.9||57.9||70.5||54.9||50.7||40.0||
* +2% at comparable exchange rates
** -3% at comparable exchange rates
***+9% at comparable exchange rates
1 Calculated with adjusted EPS
2The Board of Director’s proposal to Annual General Meeting
2007-2009 and 2012 onwards figures according to segment reporting (POC), 2010-2011 figures according to Group reporting (IFRS).