- Stock exchange releases
YIT’s Capital Markets Day today, September 29, in Bratislava, Slovakia
YIT Corporation Stock Exchange Release September 29, 2016 at 9:00 a.m.
YIT is organising a Capital Markets Day for investors and analysts today September 29 in Bratislava, Slovakia to present the company’s strategic focus areas published on September 26, 2016. YIT will also comment on the recent development of its business operations.
President and CEO Kari Kauniskangas:
After the demerger in 2013, we have successfully strengthened our balance sheet and significantly improved our capital efficiency, secured a record-high order backlog in Finland and the CEE countries as well as turned our revenue and operating profit to growth. Our renewed strategy for the next three-year period 2017-2019 is a natural continuum to this development. Our focus areas will be profitability improvement and growth. Growth engine will be urban development involving partners. The renewal of the company can be accelerated by external investments to innovations and concepts. Company continues to improve its capital efficiency to finance the growth.
In the Housing Finland and CEE segment we aim to increase the share of consumer sales and our market share in the capitals of our operating countries. In the Housing Russia segment, the strategic targets are to reduce the invested capital and to improve profitability. The target is to decrease the invested capital in Russia by approximately RUB 6 billion (approx. EUR 80 million) by the end of 2018. Business Premises and Infrastructure, profitability will be sought especially from projects with long value chain.
In Finland, our operating environment has developed positively. The amount of our apartment pre-reservations has increased significantly and the sales of the first Smartti projects will start in the beginning of October. We estimate that in the third quarter, the sales to consumers will be around 300 units (Q3/2015: 277 units) in Finland. In the CEE-countries, residential demand and economic outlook have stayed positive, and we estimate to have sold over 200 units to consumers in the third quarter (Q3/2015: 202 units).
We estimate that the deterioration of the operating environment in Russia has stabilised, but the visibility remains weak. We estimate the third quarter residential sales to consumers to be over 800 (Q3/2015: 672) units. In the Housing Russia segment, we aim to have positive adjusted operating profit in H2, and we estimate the adjusted operating profit to be around zero already in the third quarter.
There has not been any significant changes to the outlook of the Business Premises and Infrastructure segment.
Guidance for 2016 unchanged (segment reporting, POC)
The Group revenue growth is estimated to be in the range of 5–10% at comparable exchange rates.
The adjusted operating profit is estimated to grow from the level of 2015 (2015: EUR 76.0 million). The adjusted operating profit does not include material reorganisation costs or impairment.
Capital Markets Day
The Capital Markets Day’s programme starts today, September 29, 2016, at 9:00 a.m. local time (CEST). The presentations can be followed live on YIT’s website at www.yitgroup.com/webcast/cmd2016. During the President and CEO’s presentation, a teleconference is also available for investors and analysts on the phone number +44 203 194 0552.
Further information about the Capital Markets Day and YIT’s strategy is available on YIT’s website at www.yitgroup.com/investors.
For additional information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, email@example.com
Vice President, Investor Relations
Distribution: NASDAQ OMX, principal media, www.yitgroup.com
YIT creates sustainable cities and better living environment by developing and constructing housing, business premises, infrastructure and entire areas. We focus on providing a first-class customer experience, high quality and continuous development of our diverse expertise. Our operating area covers Finland, Russia, the Baltic countries, the Czech Republic, Slovakia and Poland. In 2015, our revenue amounted to nearly EUR 1.7 billion, and we employ about 5,300 employees. Our share is listed on Nasdaq Helsinki. www.yitgroup.com