The preliminary long-term financial targets were set in June 2017 when the companies were combined. The financial targets of the combined company were specified during the strategy process and were published in September 2018.
| Objective | Target | Actual 2018 |
| Return on capital employed, pro forma | >12% | 5.6% (n/a) |
| Equity ratio | >40% | 38.1% (40.2) |
| Cash flow | Positive cash flow after dividend payout* | EUR 96 million |
| Dividend per share | Growing annually | EUR 0.27 (0.25) |
* = Operating cash flow after investments - dividend payout
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 2016 | 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 after investments, EUR million |
71.2 | -19.4 | 211.4 | -61.7 | -17.3 | 90.4 | -87.9 | 151.9 | 183.7 -43.1 | 164.5 |
| 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 |
137.8 373.3(95.3)1 |
50.0% (83.0%)2 |
All figures are reported YIT figures.
* +2% at comparable exchange rates
** -3% at comparable exchange rates
***+9% at comparable exchange rates
1 Calculated with adjusted EPS
2 Dividend payout ratio considering the number of shares after the merger of YIT and Lemminkäinen
2007-2009 and 2012 onwards figures according to segment reporting (POC), 2010-2011 figures according to Group reporting (IFRS).
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.
The target levels are based on figures reported by the company on the basis of the percentage of completion (POC).
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.
The target levels are based on figures reported by the company on the basis of the percentage of completion (POC).
YIT published its updated financial targets on September 16, 2015. The Board of Directors revised YIT’s long-term return on investment (ROI) target to 15% from the earlier 20% due to lower weight of Russia in invested capital and future capital allocation. Other long term financial targets remained unchanged. Separate short term targets were abandoned now that the net debt target has been reached.
The target levels are based on figures reported by the company on
the basis of the percentage of completion (POC).
In the short term, the focus of operations will be on improving capital efficiency and cost-effectiveness rather than growth. YIT’s Board of Directors has set short-term targets for the Group to achieve by the end of 2016:
The setting of the short-term targets takes into account the weakened macroeconomic outlook. The development of business functions will continue according to the long-term targets.
YIT’s Board of Directors has kept the Group’s long-term financial targets unchanged:
The target levels are based on figures reported by the company based on percentage of completion (segment reporting).
YIT´s Board of Directors has approved the revised strategic targets for the strategy period 2014–2016. The motivation for the change stems from the current market environment, and the main objective is to secure that the cash flow and return on investment targets are achieved. The growth target was revised as follows:
The other financial targets published June 4, 2013 were kept unchanged:
The target levels are based on figures reported by the company based of percentage of completion.
The Board of Directors confirmed the following strategic long-term targets for the Group:
The target levels are based on figures reported on the basis of the percentage of completion in accordance with the current emphasis. When determining the target levels the assumption was made that economic growth in YIT´s market areas will continue.
YIT Corporation's Board of Directors confirmed the Group's strategy for 2013-2014 on September 20, 2012. Balanced, profitable growth is YIT's key strategic objective. The Group's other strategic long-term target levels remained unchanged: average annual revenue growth of more than 10 per cent, return on investment of 20 per cent, operating cash flow after investments sufficient for dividend payout and reduction of debt, equity ratio of 35 per cent and dividend payout of 40–60 per cent of net profit for the period. When determining the target levels, the assumption was made that economic growth in YIT’s market areas would continue.
YIT Corporation's Board of Directors confirmed the Group's strategy for 2012-2014 on September 21, 2011. Balanced, profitable growth was YIT's key strategic objective. The Group's other strategic long-term target levels remained unchanged: average annual revenue growth of more than 10 per cent, return on investment of 20 per cent, operating cash flow after investments sufficient for dividend payout and reduction of debt, equity ratio of 35 per cent and dividend payout of 40–60 per cent of net profit for the period. When determining the target levels, the assumption was made that economic growth in YIT’s market areas would continue.
YIT Corporation's Board of Directors confirmed the Group's strategy for 2011-2013 on August 18, 2010. The key strategic target was profitable growth. The Group's annual revenue growth target was increased to more than 10 per cent on average. The previous target was an average annual revenue growth of 5-10 per cent. The Group's other strategic target levels remained unchanged: return on investment of 20 per cent, operating cash flow after investments must be sufficient for dividend payout and reduction of debt, equity ratio of 35 per cent and dividend payout of 40 to 60 per cent of net profit for the period.
YIT Corporation's Board of Directors confirmed the Group's strategy for 2010-2012 on August 19, 2009. The key strategic target is profitable growth. The Group's annual revenue growth target has been increased to 5-10 per cent on average. Previously, the target was positive growth in revenue. The Group's other strategic target levels remain unchanged, and they are: return on investment of 20 per cent, operating cash flow after investments must be sufficient for dividend payout and reduction of debt, equity ratio of 35 per cent and dividend payout of 40 to 60 per cent of net profit for the period.
The Board of Directors of YIT Corporation confirmed the financial targets for the strategy period 2009-2011 on February 5, 2009. The cash flow target was set for the first time at Group level. The previous numerical revenue growth target of 10 per cent on average per year was abandoned. The return on investment target was set at 20 per cent, versus the previous target of 22 per cent. The targets for equity ratio and dividend payout remained unchanged. The operating profit target of 9 per cent of revenue was abandoned.
Similarly, the separate target set for the Russian operations - average annual revenue growth of 50 per cent during the period 2006-2009 - was abandoned.
On September 25, 2007,YIT Corporation’s Board of Directors confirmed the Group’s strategy and financial targets unchanged for the period 2008–2010.
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.
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.
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.
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.
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.
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.