October 10, 2006
YITs annual growth target in Russia is 50% on average
The YIT Groups strategic objective is profitable growth. The target for revenue growth is 10 per cent annually on average. Russias surging economy offers good potential for business development. YIT has set itself the goal of increasing its revenue in Russia by an average of 50 per cent annually during the 2006-2009 period.
Growth in Russia is sought primarily by stepping up residential development and by moving ahead with non-residential project development efforts. Building systems operations in St Petersburg and Moscow will also be expanded. YIT is seeking to establish a foothold for industrial services in the St Petersburg area.
Expanding operations by increasing construction development will substantially raise the amount of capital invested in business operations. YITs invested capital in Russian operations is expected to grow slightly faster than revenue.
YITs revenue in 2005 amounted to EUR 3,023.8 million, of which Russian operations accounted for about EUR 132 million, or around 4 per cent of consolidated revenue. At the end of June 2006, about EUR 135 million had been invested in Russia, representing about 14 per cent of the Groups invested capital.
YIT will start up the construction of about 3,100 residential units in Russia this year
YIT estimates that it will start up the construction of about 3,100 residential units in Russia this year (start-ups in 2005: 2,263). The construction of approximately 3,000 (2,993) residential units is estimated to be started in Finland and about 1,100 (1,111) in the Baltic countries.
At the end of June 2006, YIT had over 6,000 residential units under construction in Russia. YIT currently builds housing in St Petersburg, Moscow and Moscow Oblast. In 2007, residential construction will also be started in Kazan.
Residential development is being stepped up by increasing operations in YITs present territories and by expanding to cities in their vicinity. Over the next few years, YIT also aims to expand its operations into other Russian cities with populations in excess of a million.
YITs Capital Markets Day materials are available on the companys site at www.yitgroup.com.
For further information
Sakari Toikkanen, Executive Vice President, tel. +358 20 433 2336, firstname.lastname@example.org
Petra Thorén, Vice President, Investor Relations, tel. +358 40 764 5462, email@example.com
Timo Lehmus, Head of international operations, YIT Construction Ltd, tel. +358 400 409 181, firstname.lastname@example.org
Vice President, Corporate Communications
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