YIT to evaluate its strategic options in Russia
In order to optimise capital employed of the Group, YIT’s Board of Directors has decided to review the company’s strategic options regarding its operations in Russia. To secure the best possible value creation, YIT is reviewing alternative paths, including a potential sale of the businesses.
Markku Moilanen, President and CEO of YIT: “Our Housing Russia has done excellent work in increasing profitability over the past couple of years. The operations are now solidly profitable, further supported by a strong local housing market. However, YIT has evaluated its strategy over the past months and as a part of this review, we have concluded that we want to be clearly more focused in our business portfolio. Capital release from Russia would primarily be used to pursue growth in Housing in the growing cities of Finland, Poland, Czech Republic and Slovakia.”
During the review process, YIT’s personnel, customers or partners in Russia will not be affected, and YIT will continue sales, construction, and commissioning, as well as permitting new projects normally. All obligations related to investment contracts will be met.
The Housing Russia segment’s revenue was EUR 145 million and adjusted operating profit EUR 17 million during January-September 2021. Capital employed in Russia was EUR 184 million and accumulated RUB/EUR translation difference EUR -282 million at the end of September 2021. In addition, the customer payments of the apartments under construction in the escrow accounts amounted to EUR 106 million.
The potential sale of the business is not expected to result in a significant capital gains or losses in YIT’s consolidated income statement. However, the accumulated RUB/EUR translation difference would be booked as a cost in the income statement. The booking of the accumulated translation difference as a cost in consolidated income statement would not have an impact on Group’s equity total or affect cash flows.
For further information:
Tommi Järvenpää, Vice President, Investor Relations, YIT Corporation, tel. +358 40 576 0288, firstname.lastname@example.org
Vice President, Investor Relations
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and a significant North European urban developer and construction company. Our goal is to create more sustainable, functional and attractive cities and living environments. We develop and build apartments, business premises and entire areas. We also specialise in demanding infrastructure construction. We own properties together with our partners, which supports the implementation of our significant development projects. We also provide our customers with services that increase the value of properties. We employ approximately 7,400 professionals in ten countries: Finland, Russia, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2020 was approximately EUR 3.1 billion. YIT Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com