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Previous financial targets

Review of the strategy in 2015

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.

Long-term financial targets for YIT

  • 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 and reducing debt
  • 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).

Review of the strategy in September 2014

New short-term targets

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:

  • Revenue growth 0–5% annually (segment reporting)
  • Return on investment 15% (segment reporting)
  • Net debt under EUR 600 million (IFRS)

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.

Long-term financial targets unchanged

YIT’s Board of Directors has kept the Group’s long-term financial targets unchanged:

  • Revenue growth 5–10% annually on average
  • Return on investment 20%
  • Sufficient operating cash flow after investments for dividend payout and the reduction of debt
  • Equity ratio 40%
  • Dividend payout 40–60% of net profit for the period

The target levels are based on figures reported by the company based on percentage of completion (segment reporting).

Review of the financial targets in February 2014

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:

  • Revenue growth of  5-10 percent annually on average (previously: more than 10% annually on average)

The other financial targets published June 4, 2013 were kept unchanged:

  • Return on investment of 20 percent
  • Operating cash flow after investments sufficient for dividend payout and debt reduction
  • Equity ratio of 40 percent
  • Dividend payout of 40–60 percent of net profit for the period

The target levels are based on figures reported by the company based of percentage of completion.

Review of the strategy in June 2013

The Board of Directors confirmed the following strategic long-term targets for the Group:

  • Average annual revenue growth of more than 10 percent
  • Return on investment of 20 percent
  • Operating cash flow after investments sufficient for dividend payout and reduction of debt
  • Equity ratio of 40 percent
  • Dividend payout ratio of 40-60 percent of net profit for the period

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.

Review of the strategy in September 2012

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.

Review of the strategy in September 2011

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.

Review of the strategy in August 2010

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.

Review of the strategy in August 2009 

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.

Review of the strategy in February 2009 

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.

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.

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 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 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 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 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.

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.

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