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YIT CORPORATION Investor Relations in YIT as part of Group strategy management Petra Thorén Vice President, Investor Relations May 29, 2007.

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Presentation on theme: "YIT CORPORATION Investor Relations in YIT as part of Group strategy management Petra Thorén Vice President, Investor Relations May 29, 2007."— Presentation transcript:

1 YIT CORPORATION Investor Relations in YIT as part of Group strategy management Petra Thorén Vice President, Investor Relations May 29, 2007

2 YIT CORPORATION Contents YIT Group IR development IR in YIT –Cases

3 YIT CORPORATION YIT service portfolio Building Systems Construction Services All technical building systems Housing and area development Investments in industrial projects Facility management and expert services Office premises and project development Maintenance of industrial facilities and processes Industrial and Network Services Technical maintenance and repair works Civil engineering Networks, connections and help desk services Revenue 2006 MEUR 1,415 Revenue 1-3/2007 MEUR 368 Personnel 3/2007 11,569 Revenue 2006 MEUR 1,452 Revenue 1-3/2007 MEUR 369 Personnel 3/2007 5,734 Revenue 2006 MEUR 477 Revenue 1-3/2007 MEUR 111 Personnel 3/2007 4,787

4 YIT CORPORATION Revenue 1994 - Q1/2007 MEUR Average annual growth 1994-2006: 17% FAS 1994 - 2004 Strategic target level: growth 10% per year on average IFRS 2004 IFRS 2005 IFRS 2006 IFRS Q1/06 IFRS Q1/07

5 YIT CORPORATION Operating profit (EBIT) 1994 - Q1/2007 FAS 1994 - 2004 Average annual growth 1994-2006: 24% MEUR Strategic target level: EBIT margin 9% of revenue IFRS 2004 IFRS 2005 IFRS 2006 IFRS Q1/06 IFRS Q1/07

6 YIT CORPORATION Dividend payout 1995-2006 The doubling amount of shares wich came into effect on March 24, 2006 (split) has been taken into account. Year 2004 and 2005 are IFRS numbers. Dividend/share, EUR Dividend/earnings, % YIT´s dividend policy: 40–60% of the annual profit after taxes and minority interests 2005 1997 1999 2001 2003

7 YIT CORPORATION Strong market position within YITs business segments and market areas In Russia the biggest foreign player within Residential Construction In the Nordic countries the biggest Building Systems services provider In Finland the biggest services provider in all Business Segments In the Baltic countries among top market leaders within Construction Services

8 YIT CORPORATION Development of capital markets In Finland restrictions on foreign ownership were abolished in 1993 Change from bank-centered model to a market- based model focus on shareholder value Increased need of information in order to attract foreign capital Regulation and governance Transparency

9 YIT CORPORATION Corporate Governance External Corporate Governance Markets Market for corporate control Mergers & acquisitions, public offer Debtors Owners Securities Market Act, Finnish Companies Act Internal Corporate Governance Board of directors Management Incentive systems and share ownership Organisation and reporting

10 YIT CORPORATION Development of capital markets More pressure for top management to put time on IR on top of business strategy Role of IR and IR employees has changed essentially towards professionalism and standard job task within corporations Role of IR still differs between companies

11 YIT CORPORATION YIT´s IR policy The aim of YIT´s Investor Relations is to communicate all the essential information of YIT to all the market parties, and to do so continuously, consistently and equitably, so that the value of YIT´s share reflects its fair value Maintain openness and transparency Honesty and credibility; we do what we say Service-minded attitude in all Investor Relations

12 YIT CORPORATION IR in YIT Part of Group strategy management Management priority and availability Systematic approach to managing IR

13 YIT CORPORATION Good internal co-operation Communi- cations Finance and accounting Investor Relations Business segments Corporate planning CEO, EVP Information Capital markets Link between company and capital markets

14 YIT CORPORATION IR-team CEO, Executive Vice President, Investor Relations Communications Management Business Management Other Management

15 YIT CORPORATION Big strategic IR-events Acquisitions New management and strategic target levels Russia IFRS

16 YIT CORPORATION YIT 670 % OMXHCAP 105 % Case ABB-acquisition Valuation ABB Building Systems acquisition 4 July, 2003

17 YIT CORPORATION Case ABB-acquisition Investment story and IR Pricing Fit to YIT strategy YIT valuation and positioning closer to that of service company Well prepared and communicated to the market Day of release Follow-up 1.integration 2.profitability 3. growth Credibility

18 YIT CORPORATION 1) Includes a loss provision of EUR 4 million due to an electrification project on two ships for the Royal Danish Navy (non-recurring item) in Q3/2004. 2) Building Systems released provisions for certain ended contractual obligations in the Q4/2006 period. This had a positive impact of EUR 7.2 million on operating profit. Building Systems Still following ABB acquisition Operating profit, MEUR Operating profit margin,% 2004 2005 2006 1-12 2004 2005 2006 1-12 2007 2) 1)

19 YIT CORPORATION YITs strategic target levels Average annual growth in revenue 10% Operating profit margin (EBIT) 9% Return on investment 22% Equity ratio 35% Dividend payout 40–60% of net profit for the year after taxes and minority interests

20 YIT CORPORATION Potential expansion 2007- Current business locations Project development in St. Petersburg For EPI Russia fund an office building and a logistics centre For Atria a production plant and a logistics centre Entering new big and satellite cities (apartments) Kazan 5/2006 (over 1,000) Jekaterinburg 10/2006 (ab. 300) Moscow City 10/2006 (ab. 150) Jaroslavl 10/2006 (ab. 160) Strengthening plot reserve in existing cities (apartments) Novo-Orlovskij 10/2006, starting from 2008 (over 15,500) Moscow (10.1) Moscow Oblast (6.5) Tver (0.4) Yaroslavl (0.6) Ivanovo (0.4) Vladimir (0.3) Ryazan (0.5) Kaluga (0.3) Tula (0.5) Vladimir Oblast (1.5) Ryazan Oblast (1.1) Tula Oblast (1.6) Kaluga Oblast (1.0) Tver Oblast (1.4) Yaroslavl Oblast (1.3) Ivanovo Oblast (1.1) Average annual growth target in Russia 50% 2006-2009

21 YIT CORPORATION Total Dec/2005 MEUR 899 Total Dec/2006 MEUR 1,207 Dec/2005 Dec/2006 Invested capital= balance sheet total - non interest-bearing liabilities YIT Group invested capital Other YIT Group 89% MEUR 799 Russia 11% MEUR 100 Russia 23% MEUR 279 Other YIT Group 77% MEUR 928 Russia 26% MEUR 314 Other YIT Group 74% MEUR 898 Total Mar/2007 MEUR 1,212 Mar/2007

22 YIT CORPORATION Business insight Capital Markets Days 2003 St Petersburg 2004 Oslo, Building Systems Day ABB acquisition and new management 2005 Lithuania New management and revised strategic target levels 2006 Moscow Russia 50% growth target

23 YIT CORPORATION IFRS Big accounting changes Balance sheet, gearing, profit margin Pre-IFRS date communications to the market about major changes Internal working group 6 months (accounting, IR, communications) Stock exchange bullet, analyst and investor event No surprises!

24 YIT CORPORATION Principal shareholders April 30, 2007 Total number of shareholders 13,474. Share capital EUR 146,688,843.82 OwnersShares% 1Suomi Mutual Life Assurance Company8,571,1806.76 2Varma Mutual Pension Ins. Company6,600,2085.20 3Sampo Life Insurance Company Ltd6,400,0005.05 4Ilmarinen Mutual Pension Ins. Company3,632,9232.86 5Tapiola Group2,190,6801.73 6Etera Mutual Pension Ins. Company1,874,4001.48 7Odin Norden1,449,7661.14 8Brotherus Ilkka1,224,7400.97 9State Pension Fund1,150,0000.91 10OP-Delta Equity Fund876,4700.69 Others32,149,78825.33 Nominee registered shares total60,732,10547.88 Total126,852,260100.00

25 YIT CORPORATION 2002 2003 2004 2005 2006 2007 4/2007: 50.4% International ownership

26 YIT CORPORATION Trading and volatility 20042001200220032005 Trading as percentage of share capital % Volatility sep 2003 28 % (3,5 years) Volatility jan 2006 24 % (3,5 years) 2006

27 YIT CORPORATION YIT Corporation was formed on September 2, 1987. YITs share has been quoted on Helsinki Exchanges since September 4, 1995. Number of shareholders

28 YIT CORPORATION More information on our web site Thank you for your attention

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