YIT CORPORATION FINANCIAL STATEMENTS BULLETIN Feb 4, 2010 at 8:00 a.m.
YIT's Financial Statements for 2009:
OPERATING PROFIT IMPROVED IN EVERY QUARTER - YIT ESTIMATES THAT IN 2010
REVENUE
WILL GROW AND PROFIT BEFORE TAXES WILL GROW SIGNIFICANTLY
Development during October-December compared to previous quarter:
- Revenue increased by 18 per cent to EUR 960.5 million
(7-9/2009: EUR 815.0
million).
- Operating profit increased by 31 per cent to EUR
59.7 million (7-9/2009: EUR
45.6 million).
- Operating profit margin was 6.2 (7-9/2009:
5.6%)
- Profit before taxes increased by 66 per
cent to EUR 49.5 million (7-9/2009:
EUR 29.9 million).
- Operating cash flow after
investments amounted to EUR 143.8 million (7-9:2009:
EUR 29.5 million).
Development in 2009
compared to previous year:
- Revenue
decreased by 12 per cent to EUR 3,452.4 million (1-12/2008: EUR
3,939.7
million).
-
Operating profit decreased by 36 per cent to EUR 165.5 million (EUR 260.6
million).
- Operating profit margin was 4.8 (6.6%).
- Profit before taxes decreased by 45 per cent to EUR 106.9 million (EUR
193.1
million).
- Operating cash flow after investments amounted to EUR 211.4
million (EUR -19.4
million).
- Return on investment was 10.9% (17.5%).
- Equity ratio was 33.8 per cent (30.7%).
- Gearing ratio decreased to 62.2% at year's end
(79.8%).
- Service and maintenance operations generated
EUR 1,201.3 million (2008: EUR
1,299.2 million), in other words, 35 per
cent (33%) of Group revenue. The
Building and Industrial Services
segment accounted for the majority of service
and maintenance operations; 54
per cent (53 %) of its revenue was generated by
service and maintenance
operations.
- In Finland, YIT
sold a total of 3,502 (1,920) residential units during the
year, of which
1,567 (1,462) were own development targeted directly at consumers
and 1,935
(458) were rental housing for investors. YIT started up the
construction of a total of 3,447 (1,542) residential units in Finland during
2009, of which 1,528 (1,084) were own housing development project aimed at
consumers.
- In Russia, YIT sold a total of 2,612 (2,793) residential units and in
the
Baltic countries 256 (733) residential units. In Russia, YIT started
up the
construction of a total of 672 (3,622) residential units. In
Baltic countries
there were no residential start-ups.
- Order backlog decreased by 14 per cent to EUR 2,773.6
million (EUR 3,233.7
million).
- The number of personnel decreased by 9 per cent
to 23,480 (25,784) at year's
end.
- The Board of Directors proposes to the
Annual General Meeting that a dividend
of EUR 0.40 per share (EUR 0.50) be
paid for the 2009 financial year,
representing 74.9 per cent
(47.6%) of earnings per share.
Focus on profitability
and operating cash flow in 2009
In 2009's
challenging market situation the Group's actions focused on
accelerating sales and enhancing profitability and cash flow. The operating
profit and profitability of the Group increased in every quarter of 2009.
The
operating profit for the fourth quarter was clearly better than for the
previous
quarter or the corresponding period the year before. Operating cash
flow after
investments was good throughout the year and very strong during
the fourth
quarter. The company's financial position was good at year's
end.
Profit improvement during 2009 was affected by the
recovery in residential sales
in Finland and Russia. The profitability of
Building and Industrial Services'
business operations was stable in
January-September and improved during the
fourth quarter. The operating
profit of Construction Services Finland remained
stable throughout the year.
The operating profit of International Construction
Services remained
negative as a whole, but turned to positive figures during the
third quarter
and improved further in October-December.
The
amount of Group's invested capital decreased. Invested capital decreased in
Construction Services Finland. In Russia, the invested capital decreased
slightly during the last quarter. At the end of the year, 40 per cent of
the
Group's invested capital was tied up in Russia. Group's operations
were
streamlined by cutting annual fixed costs by approximately EUR
60 million and
adjusting the number of personnel to match the market
conditions.
Growth target was raised
Revenue and order backlog decreased on the
previous year. A clear decrease in
business premises construction reduced
the project activity in Building and
Industrial Services and affected
Construction Services Finland. The demand for
service and maintenance
operations for buildings and industry as well as
infrastructure
construction remained relatively stable. Residential demand
picked up
during the year in both Finland and Russia. In the Baltic countries
construction activity was clearly at a lower level than the year before.
The Group's annual revenue growth target was increased to 5-10 per cent
on
average. Previously, the target was positive growth in revenue.
Residential
start-ups were increased in Finland in each quarter of the
year to secure
growth. YIT is prepared for growth also in Russia and
new residential projects
were started up during the later part of the year.
YIT has a versatile portfolio
of apartments under construction both in Finland
and Russia. The company's
market share has increased due to good
residential sales and increased
residential start-ups. In Building
and Industrial Services the focus of
operations has been shifted to
service and maintenance as well as renovation and
modernisation projects,
which offers a good starting point for year 2010.
Outlook for 2010
YIT Corporation
estimates that the Group's revenue will increase and profit
before taxes
will increase significantly in 2010 compared to 2009.
The
demand for housing is expected to remain good in 2010 in Finland as well as
Russia.
In Finland, the residential demand is supported by low interest rates,
increased
consumer confidence and structural factors, such as migration,
increasing
population and decreasing family sizes. The price level of
apartments has
developed positively. There is a low supply of new
residential units in the
market. YIT has started up new residential
projects in 2009, which offers a
solid starting point for 2010. At the
end of 2009, YIT had 3,773 residential
units under construction. There
were 1,061 residential units on sale, of which
216 had been completed. Good
plot reserves, geographically extensive operations
and the ability to react
swiftly to changes in the market enable YIT to increase
residential
development activity in 2010.
There
is a great need for new housing in Russia, and therefore the demand
outlook for residential units aimed at YIT's customer segment is unchanged in
the long term. At the end of 2009, housing prices have stabilized and
consumer
confidence has increased. New residential projects have been
started up in the
market, but the supply is still limited. At the end of
2009, YIT had 4,174
residential units under construction. There were
3,603 residential units on
sale, of which 1,243 had been completed. YIT
has improved its reputation as a
reliable construction company and
developed its sales process. The company has
increased the availability of
loans for its customers through co-operation with
banks. YIT started new
residential projects during the last months of 2009 and
in 2010 the
residential start-ups are increased responding to the market
demand.
Residential demand is affected by consumer confidence, employment
situation and
interest rate development both in Finland and Russia.
Additionally, in Russia
the residential demand is dependent on oil prices
and the exchange rate of the
ruble.
The opportunities for organic growth in
Building and Industrial Services are
supported by the need for service and
maintenance as well as renovation and
public sector projects. There is a
large number of small companies operating in
building system markets and the
consolidation development provides opportunities
for acquisitions. Industrial
investments are low in Finland, but the demand for
industrial maintenance
services will continue relatively stable. New investments
in technical
building systems will decrease in all YIT markets, particularly due
to the low
volumes of business premises construction. YIT has an extensive
network
of local offices in the markets where it operates and a solid market
position in building system and industrial service and maintenance
operations,
projects and energy-efficiency services.
New projects related to transportation will begin in the
Finnish infrastructure
market in 2010; at the same time the demand in the
municipal sector will
decrease. Opportunities will also open in
connection with road and regional
maintenance contracts. YIT has
large-scale route projects underway in
infrastructure services. The
Group has special expertise in infrastructure and a
solid position as
Finland's largest private provider of road maintenance
services.
Group key
figures
------------------------------------------------------------------------------
--
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
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---
|
Revenue, MEUR | 3,45 | 3,93 | -12% | | 823.7 | 853.1 | 815.0 | 960.5
|
| | 2.4 | 9.7 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 165. | 260. | -36% | | 22.1 | 38.1 | 45.6 | 59.7
|
| profit, MEUR | 5 | 6 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 4.8% | 6.6% | - | | 2.7 | 4.5 | 5.6 | 6.2
|
| profit | | | | | | | |
|
| margin, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit before | 106. | 193. | -45% | | 2.2 | 25.2 | 29.9 | 49.5
|
| taxes, MEUR | 9 | 1 | | | | | |
|
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---
|
Earnings/shar | 0.53 | 1.05 | -50% | | 0.02 | 0.12 | 0.15 | 0.24
|
| e, EUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Return on | 10.9 | 17.5 | - | | 14.3 | 11.4 | 9.8 | 10.9
|
| investment | | | | | | | |
|
| (from the | | | | | | | |
|
| last 12 | | | | | | | |
|
| months), % | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Gearing ratio | 62.2 | 79.8 | - | | 88.5 | 90.6 | 83.8 | 62.2
|
| at end of | | | | | | | |
|
| period, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 211. | -19. | - | | 10.3 | 27.8 | 29.5 | 143.8
|
| cash flow | 4 | 4 | | | | | |
|
| after | | | | | | | |
|
| investments, | | | | | | | |
|
| MEUR. | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Order backlog | 2,77 | 3,23 | -14% | | 3,045 | 2,916. | 2,800. | 2,773
|
| at end of | 3.6 | 3.7 | | | .0 | 4 | 8 |
.6 |
| period, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at | 23,4 | 25,7 | -9% | | 25,23 | 24,763 | 24,003 | 23,480
|
| end of period | 80 | 84 | | | 9 | | |
|
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---
Segment
key figures:
------------------------------------------------------------------------------
--
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
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---
|
Building and | | | | | | | |
|
| Industrial | | | | | | | |
|
| Services | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Revenue, MEUR | 2,12 | 2,39 | -11% | | 537.9 | 529.2 | 483.9 | 573.9
|
| | 4.9 | 6.0 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 119. | 162. | -26% | | 28.6 | 28.2 | 24.9 | 37.6
|
| profit, MEUR | 3 | 0 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 5.6% | 6.7% | - | | 5.3 | 5.3 | 5.1 | 6.6
|
| profit | | | | | | | |
|
| margin, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Construction | | | | | | | |
|
| Services | | | | | | | |
|
| Finland | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Revenue, MEUR | 1,02 | 1,14 | -10% | | 239.8 | 253.0 | 246.3 | 290.6
|
| | 9.7 | 7.9 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 81.9 | 111. | -27% | | 20.9 | 19.9 | 20.8 | 20.3
|
| profit, MEUR | | 7 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 8.0% | 9.7% | - | | 8.7 | 7.9 | 8.4 | 7.0
|
| profit | | | | | | | |
|
| margin, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
International | | | | | | | |
|
| Construction | | | | | | | |
|
| Services | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Revenue, MEUR | 359. | 493. | -27% | | 61.4 | 87.4 | 97.6 | 113.0
|
| | 4 | 5 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | -17. | 9.0 | -298% | | -23.8 | -5.2 | 3.7 | 7.5
|
| profit, MEUR | 8 | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | -5.0 | 1.8% | - | | -38.7 | -5.9 | 3.8 | 6.6
|
| profit | % | | | | | | |
|
| margin, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
Information
session, webcast and conference call
YIT
will hold an information session for investors, analysts and the media on
Thursday, February 4, 2010 at 10:00 a.m. (Finnish time, EEST) at YIT's head
office, address Panuntie 11, 00620 Helsinki, Finland. The information
session
will be held in English. After the session, representatives of the
media can
also ask questions in Finnish. The presentation materials are
available in
English and Finnish.
The information session can be viewed live on YIT's
website,
www.yitgroup.com/webcast. The webcast replay will
be available at the same
address starting at approximately 12:00 noon.
Participants are asked to call the
assigned number +44 (0)20 7162 0077 at 9:55
a.m. (Finnish time, EEST) at the
latest, i.e. a minimum of 5 minutes
before the conference call begins.
Schedule in different time
zones:
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----
|
| Financial | Information | Recorded webcast
|
| | Statements | session, | available
|
| | bulletin | conference call |
|
| | published | and |
|
| | | webcast |
|
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---
|
EEST (Helsinki) | 08:00 | 10:00 | 12:00
|
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---
|
CEST (Paris, | 07:00 | 09:00 | 11:00
|
| Stockholm) | | |
|
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---
|
BST (London) | 06:00 | 08:00 | 10:00
|
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---
|
US EDT (New York) | 01:00 | 03:00 | 05:00
|
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---
Annual
General Meeting 2010
YIT Corporation's Annual General Meeting will be held on Wednesday, March
10,
2010, starting at 1:00 p.m. (Finnish time, EEST) onwards in Finlandia
Hall,
Conference Wing, Hall A, located at the address: Mannerheimintie
13, Helsinki,
Finland (entrance through doors M1 and K1). The full notice of
the meeting,
including the Board of Directors' proposals to the Annual
General Meeting, will
be published as a separate stock exchange release on
February 4, 2010.
Financial information in 2010
The Annual Report including financial
statements for 2009 and a Corporate
Governance Statement, will be
published on YIT's Internet site in Finnish and
English on February 17,
2010. Interim Reports will be published on April 29,
July 23 and October
27, 2010.
YIT will apply
the IFRIC15 Agreements for the Construction of Real Estate IFRS
interpretation as of the financial period starting January 1, 2010, and its
application will change mainly the recognition of YIT Group's housing
development projects to take place at the time of delivery while until
now they
have been recognised as income based on the principle of percentage
of
completion multiplied by the percentage of sales. In business
premises
development the method of income recognition will be
evaluated case by case
depending on the terms of agreements. Change in
the income recognition will
cause greater variation between the different
quarters. YIT will publish
IFRIC15-compliant comparison figures for
the financial year 2009 on March 23,
2010. Despite of the change in
accounting principle, YIT will publish the
segment information using
the principle of percentage of completion multiplied
by the percentage of
sales also in the future.
Financial
reports and other investor information are available on YIT's
website,
www.yitgroup.com/investors. The materials may be ordered via the
Internet site,
by sending an e-mail to InvestorRelations@yit.fi or by
telephone at +358 20 433
2467.
YIT CORPORATION
Juhani Pitkäkoski
President and CEO
For further information, please
contact:
Juhani Pitkäkoski, President
and CEO, +358 20 433 3301, juhani.pitkakoski@yit.fi
Timo Lehtinen, Chief
Financial Officer, +358 20 433 2258, timo.lehtinen@yit.fi
Distribution:
NASDAQ OMX Helsinki, main media, www.yitgroup.com
FINANCIAL
STATEMENTS BULLETIN JANUARY 1 - DECEMBER 31, 2009
REVENUE EUR 3,452 MILLION
YIT Group's revenue for 2009 decreased by 12 per cent on the previous
year to
EUR 3,452.4 million (1-12/2008: EUR 3,939.7 million).
Building and Industrial Services, covering all countries in
which YIT operates,
generated the majority of the revenue. Revenue decreased
in all segments
compared to the year before due to the weaker market
conditions. International
Construction Services revenue increased in all
quarters as the year went on with
a picking up of residential sales. Revenue
for the fourth quarter was the
all-year high in all segments due to
accelerated residential sales in Russia and
Finland and seasonal fluctuations
typical of the Building and Industrial
Services segment.
Finland accounted for 45%
of revenue (47%), Sweden for 15% (16%), Norway for 12%
(12%), Central Europe
for 11% (5%), Russia for 9% (10%), Denmark for 4% (4%) and
the Baltic
countries for 2% (4%). In local currency terms, the decrease in Group
revenue
was 8 per cent.
Revenue by segment (MEUR)
----------------------------------------------------------------------------
----
|
| 2009 | 2008 | Change | % of the
|
| | | | |
Group's |
| | | | |
revenue for |
| | | |
| 2009
|
-----------------------------------------------------------------------------
---
|
Building and | 2,124.9 | 2,396.0 | -11% | 62%
|
| Industrial Services | | | |
|
| 1) | | | |
|
-----------------------------------------------------------------------------
---
|
Construction | 1,029.7 | 1,147.9 | -10% | 30%
|
| Services Finland | | | |
|
-----------------------------------------------------------------------------
---
|
International | 359.4 | 493.5 | -27% | 10%
|
| Construction | | | |
|
| Services | | | |
|
-----------------------------------------------------------------------------
---
|
Other items | -61.6 | -97.7 | -37% | -2%
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 3,452.4 | 3,939.7 | -12% | 100%
|
-----------------------------------------------------------------------------
---
1)
The Central European building system operations acquired from Germany,
Austria, Poland, Czech Republic, Hungary and Romania were transferred to YIT
on
August 1, 2008. The revenue of these operations for August-December 2008
amounted to EUR 182.6 million.
YIT's service chain for customers covers investments, servicing and
maintenance
as well as the change of premises' purpose of use. The extensive
service chain
aims at better service capability, business growth and steady
income flow.
Service and maintenance of buildings, industry and
traditional infrastructure
accounts for a significant proportion of the
Group's revenue. The target is to
increase service and maintenance
operations further. In 2009, service and
maintenance operations
generated EUR 1,201.3 million (2008: EUR 1,299.2
million), in other
words, 35 per cent (33%) of consolidated revenue. The
Building and
Industrial Services segment accounted for the majority of service
and
maintenance operations; 54 per cent (53 %), or EUR 1,151.0 million (EUR
1,260.2 million), of its revenue was generated by service and maintenance
operations.
OPERATING PROFIT EUR 166 MILLION
The Group's operating profit decreased by 36 per cent to EUR 165.5
million (EUR
260.6 million). Operating profit margin was 4.8 per cent (6.6%).
Return on
investment was 10.9 per cent (17.5%).
The operating profit decreased compared to the previous
year in all segments.
The operating profit of International Construction
Services remained negative as
a whole. The segment's operating profit was
weakened on account of the volume of
residential sales in the first part of
the year falling short of the previous
year, housing prices being at a
lower level than last year and the Baltic market
continuing to be weak.
The Group's profitability
and operating profit improved in every quarter.
Operating profit for
the fourth quarter was clearly better than during the
previous quarter
or the corresponding period the year before. Profit improvement
during 2009
was affected by the recovery in residential sales in Finland and
Russia.
The profitability of Building and Industrial Services was stable in
January-September and improved during the fourth quarter. The operating
profit
of Construction Services Finland remained stable throughout the year.
The
operating profit of International Construction Services turned to
positive
figures during the third quarter and improved further in
October-December.
Operating profit by segment (MEUR)
----------------------------------------------------------------------------
----
|
| 2009 | 2008 | Change | Proportion
|
| | | | |
of |
| | | | | the
Group's |
| | | | |
operating |
| | | | |
profit |
| | | |
| 2009
|
-----------------------------------------------------------------------------
---
|
Building and Industrial | 119.3 | 162.0 | -26% | 72%
|
| Services 1) | | | |
|
-----------------------------------------------------------------------------
---
|
Construction Services | 81.9 | 111.7 | -27% | 50%
|
| Finland 2) | | | |
|
-----------------------------------------------------------------------------
---
|
International | -17.8 | 9.0 | -298% | -11%
|
| Construction Services | | | |
|
-----------------------------------------------------------------------------
---
|
Other items | -17.9 | -22.0 | -19% | -11%
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 165.5 | 260.6 | -36% | 100%
|
-----------------------------------------------------------------------------
---
Operating
profit margin by segment
----------------------------------------------------------------------------
----
|
| 2009 | 2008
|
-----------------------------------------------------------------------------
---
|
Building and Industrial Services 1) | 5.6% | 6.8%
|
-----------------------------------------------------------------------------
---
|
Construction Services Finland 2) | 8.0% | 9.7%
|
-----------------------------------------------------------------------------
---
|
International Construction Services | -5.0% | 1.8%
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 4.8% | 6.6%
|
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---
1a)
The building system service operations acquired from Central Europe were
transferred to YIT on August 1, 2008.
1b) On September 30, 2009, the court of arbitration issued its ruling in
the
dispute concerning the mechanical installation contract YIT carried
out for
Neste Oil's Porvoo oil refinery. The effect of the ruling on
Building and
Industrial Services' operating profit for 2009 was EUR
-3.2 million.
2) On March 10, 2008, the Supreme Court issued its
ruling on disputes connected
with the renovation of SOK's former head office
building. The ruling had a
positive effect of EUR 3.5 million on
Construction Services Finland's operating
profit for 2008.
EARNINGS PER SHARE EUR 0.53
Profit before taxes
decreased by 45 per cent compared to the year before to EUR
106.9 million
(EUR 193.1 million). Earnings per share decreased by 50 per cent
to EUR 0.53
(EUR 1.05).
Financial expenses decreased compared to the previous year due to a general
decrease in interest rates and a decrease in net interest-bearing
liabilities.
Profit before taxes and earnings per share improved in every
quarter. Profit
before taxes amounted to EUR 2.2 million for the first
quarter of 2009, EUR 25.2
million for the second quarter, EUR 29.9 million for
the third quarter and EUR
49.5 for the fourth quarter.
DIVIDEND PROPOSAL EUR 0.40
The Board of Directors proposes to the
Annual General Meeting that a dividend of
EUR 0.40 per share (EUR 0.50) be
paid for the 2009 financial year, representing
74.9 per cent (47.6%) of
earnings per share.
The Board of
Directors' proposal for the use of distributable equity is
presented
at the end of the financial statements.
ORDER
BACKLOG EUR 2,774 MILLION
The Group's order backlog was EUR 2,773.6 million (EUR 3,233.7 million) at
the
end of the year, or 14 per cent less than a year before. The order
backlog has a
normal margin.
The order backlog of Construction Services Finland increased
particularly due to
increased housing start-ups. The order backlog decreased
in the other business
segments compared to the year before. The order
backlog of the Building and
Industrial Services segment declined due to
the decrease in customers'
investments. The order backlog of
International Construction Services decreased
as the segment's residential
projects under construction in Russia were
recognised as income as
construction and sales proceeded. Also new residential
projects were started
up in Russia.
Due to market
uncertainties, the construction of residential projects in the
start-up
phase in Russia in projects whose sales had not yet begun was suspended
in
October 2008. Some of the projects were restarted late in 2009. At the end
of
2009, the value of the projects that were still suspended amounted to EUR
282
million in the order backlog (12/08: EUR 356 million).
The order backlog was impacted by fluctuations in the exchange
rates of the
Norwegian krone, Swedish krona and Russian ruble. Also in
local currency terms,
the decrease in the Group's order backlog was 14 per
cent.
Order backlog by segment (MEUR)
----------------------------------------------------------------------------
----
|
| 2009 | 2008 | Change | Proportion
|
| | | | |
of |
| | | | | the
Group's |
| | | | |
order |
| | | | |
backlog |
| | | |
| 2009
|
-----------------------------------------------------------------------------
---
|
Building Systems 1) | 850.4 | 1,050.2 | -19% | 31%
|
-----------------------------------------------------------------------------
---
|
Construction Services | 1,007.5 | 874.2 | 15% | 36%
|
| Finland | | | |
|
-----------------------------------------------------------------------------
---
|
International | 960.1 | 1,369.3 | -30% | 35%
|
| Construction Services 2) | | | |
|
-----------------------------------------------------------------------------
---
|
Other items | -44.4 | -60.0 | -26% | -2%
|
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---
|
YIT Group, total | 2,773.6 | 3,233.7 | -14% | 100%
|
-----------------------------------------------------------------------------
---
1)
The business operations acquired from Central Europe transferred to YIT on
August 1, 2008. The order backlog of these operations amounted to EUR 265.6
million at the end of 2008.
2) The order backlog includes projects suspended in October 2008. At the
end of
2009, the value of the projects that were still suspended amounted to
EUR 282
million in the order backlog (12/08: EUR 356 million).
The order backlog includes that portion of customer orders and
ongoing
development projects that has not been recognised as
revenue. Contracted
projects are recognised as income based on the
percentage of completion.
Residential development projects are
recognised as income by multiplying the
percentage of completion by
percentage of sale. Commercial real estate
development projects are
recognised as income using the principle percentage of
completion multiplied
by percentage of sale multiplied by occupancy rate. As of
the beginning of
2010, the revenue recognition of the Group's own housing
development
projects will change so that the projects will be recognised as
income in
their entirety only upon delivery. In business premises development
the
method of income recognition will be evaluated case by case depending on
the
terms of agreements. Change in the income recognition will cause greater
variation between the different quarters.
The order backlog of Building and Industrial Services mainly
comprises contract
orders and service and maintenance agreements. A
significant part of the
segment's maintenance and servicing operations
are immediately performed
assignments that are not included in the
order backlog. All of the additional
works or alterations are neither
included in the order backlog.
In residential and
commercial development projects, YIT assumes the
responsibility
for the sales of the residential units or the site. Commercial
real estate
development projects are usually sold to investors either prior to
construction or during an early phase thereof. In Construction Services
Finland,
more than half of the order backlog at the end of 2009 was sold and
less than
half unsold production. In International Construction Services,
more than half
of the order backlog consisted of unsold residential units.
GOOD FINANCIAL POSITION AT YEAR'S END
Operating cash flow after investments was good
throughout the year and very
strong during the fourth quarter. The cash
flow was strengthened by strong
residential sales during the second part
of the year and stable profitability in
Building and Industrial Services.
Operating cash flow after investments amounted
to EUR 211.4 million
(1-12:2008: EUR -19.4 million). Operating cash flow after
investments was
EUR 10.3 million in January-March, EUR 27.8 million in
April-June,
EUR 29.5 million in July-September and EUR 143.8 million in
October-December. Cash reserves at the end of the period amounted to EUR
173.1
million (EUR 201.7 million). Dividends of EUR 63.4 million (EUR 102.0
million)
were paid. Taxes of EUR 38.7 million were paid during the year.
Of YIT's business operations, building and industrial services
as well as
infrastructure and other contract construction require
little capital. Capital
is particularly tied to the plot reserves, their
development and ongoing or
completed production. At the end of the year,
the Group's invested capital
amounted to EUR 1,471.4 million (EUR
1,653.9 million). At the end of the year,
40 per cent (33%), or EUR 582.3
million (EUR 545.2 million), of the Group's
invested capital was invested
in Russia. The amount of capital invested in
Russia was increased by
capital tied to unfinished and completed production. The
devaluation of the
ruble decreased the amount of capital invested in Russia by
EUR 26.4 million
compared to the end of 2008. At the end of the year, EUR 213.9
million of the
capital invested in Russia comprised debt investments and EUR
368.5
million were equity investments or similar fixed net investments.
Invested
capital is calculated by deducting non-interest bearing liabilities
from the
balance sheet total. The balance sheet total at the end of the
year was EUR
2,626.4 million (EUR 2,973.9 million).
The gearing ratio improved to 62.2 per cent (79.8%) at
the end of the year. Net
financing debt decreased on the previous year to EUR
497.7 million (EUR 644.5
million). The equity ratio was 33.8 per cent
(30.7%).
Net financial expenses decreased to EUR
58.6 million (EUR 67.5 million), or 1.7
per cent (1.7%) of the Group's
revenue. The exchange rate differences recognised
under net financial
expenses, totalling EUR 28.4 million (EUR 25.0 million),
were comprised
nearly entirely of costs of hedging debt investments in Russia.
The loan
portfolio totalled EUR 670.8 million (EUR 846.2 million) at the end of
the
year, and its average interest rate was 3.6 per cent (4.7%). Fixed-interest
loans accounted for 67 per cent (51%) of the Group's entire loan portfolio.
Of
the loans, 30 per cent (32%) had been raised directly on the capital and
money
markets. The maturity distribution of the loans is balanced. The
capital
structure was reinforced by converting EUR 60.0 million in
short-term loans to
long-term loans during the first quarter. In addition,
factoring financing for
Nordic trade receivables was arranged during the
review period, increasing
available sources of finance by about EUR 100
million. Factoring financing was
being used at the end of the year for EUR
27.0 million. A bond of EUR 50 million
that fell due in October was paid in
cash assets.
The construction-stage contract
receivables sold to financing companies totalled
EUR 78.0 million (EUR 163.3
million) at the end of the year. Of this amount, EUR
37.8 million (EUR 95.5
million) is included in interest-bearing liabilities in
the balance sheet
and the remainder comprises off-balance sheet items in
accordance with
IAS 39. Interest expenses on receivables sold to financing
companies
amounted to EUR 1.8 million (EUR 15.1 million) during the review
period
and they are fully included in the financial expenses of the reported
period.
Participations in the housing corporation loans of unsold completed
residential
units, EUR 34.5 million (EUR 48.2 million) at year's end, are
included in
interest-bearing liabilities. The interest of
participations in the housing
corporation loans, EUR 2.3 million (EUR 2.3
million), is booked in project
expenses, as it is included in housing
corporation charges.
CAPITAL EXPENDITURES AND
ACQUISITIONS
Gross capital
expenditures on non-current assets included in the balance sheet
totalled
EUR 27.9 million (EUR 85.2 million) during the financial period,
representing 0.8 per cent (2.2%) of revenue. Investments in construction
equipment amounted to EUR 9.0 million (EUR 14.2 million) and investments in
information technology to EUR 7.9 million (EUR 5.5 million). Other
investments,
including acquisitions, amounted to EUR 11.0 million (EUR 65.5
million).
No significant acquisitions or divestments were made
during 2009. During the
latter half of the year, YIT increased its holding
in YIT Kausta in Lithuania to
97.5 per cent and in Russia in YIT Uralstroi to
99.9 per cent and in YIT Don to
78 per cent in the International Construction
Services segment.
GROWTH TARGET FOR THE STRATEGIC PERIOD IS
RAISED
YIT Corporation's Board of Directors
confirmed the Group's strategy for
2010-2012 on August 19, 2009.
The key target of the strategy
is profitable growth. The Group's annual revenue
growth target was 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.
CHANGES IN GROUP STRUCTURE
YIT Group's business operations are divided into main business
segments. The
Building Systems and Industrial Services segments merged
into a single segment,
Building and Industrial Services, at the beginning of
2009.
The other two business segments were Construction
Services Finland and
International Construction Services.
CHANGES IN GROUP MANAGEMENT
On August 20, 2009, Arne Malonæs was
appointed as President of the YIT Building
and Industrial Services segment
and Timo Lehtinen as Chief Financial Officer of
YIT Group. Before this
appointment, Arne Malonæs served as the President of
YIT's Norwegian
subsidiary, with responsibility for the development of the
Group's
building system services. Timo Lehtinen was Senior Vice President,
Finance, with responsibility for both the Construction Services Finland and
International Construction Services segments. Of the Group's Management
Board
members, the previous CFO, head of Industrial Services and Senior
Vice
President, Human Resources left YIT's employ during 2009. HR
matters were
included within the responsibilities of the Senior Vice
President,
Administration.
RESOLUTIONS PASSED AT THE ANNUAL GENERAL MEETING
YIT Corporation's Annual General Meeting was
held on March 11, 2009. The Annual
General Meeting adopted the 2008 financial
statements, discharged the members of
the Board of Directors and the President
and CEO from liability, confirmed a
dividend of EUR 0.50 (EUR 0.80) per
share, or a total of EUR 62.5 million (EUR
101.8 million) as proposed by the
Board of Directors. The Annual General Meeting
confirmed the composition of
the Board of Directors, decided to keep the Board
of Directors' fees
unchanged and elected Henrik Ehrnrooth as Chairman of the
Board of
Directors, Eino Halonen as Vice Chairman and Kim Gran, Reino Hanhinen,
Antti
Herlin, Satu Huber and Lauri Ratia as members. The Annual General Meeting
elected PricewaterhouseCoopers Oy, Authorised Public Accountants, as the
company's auditor.
The Annual General Meeting decided to authorise the Board of Directors
to
purchase the company's shares and to dispose of them, as proposed by
the Board
of Directors. The authorisation granted to the Board of Directors
covers the
acquisition of a maximum of 10,100,000 company shares,
purchased with the
company's unrestricted equity, and the assignment of
a maximum of 12,700,000 of
the shares bought back for and held by the
company. The authorisation overrides
the authorisation to purchase and divest
the company's own shares issued by the
Extraordinary General Meeting on
October 6, 2008.
In its organisational
meeting on March 11, 2009, the Board elected Reino
Hanhinen as
chairman and Satu Huber and Lauri Ratia as members of the audit
committee
from among its number. The Board elected Henrik Ehrnrooth as chairman
and
Eino Halonen, Reino Hanhinen and Antti Herlin as members of the nomination
and rewards committee from among its number.
YIT Corporation published stock exchange releases on the resolutions
passed at
the Annual General Meeting and the organisation of the Board of
Directors on
March 11, 2009.
LEGAL PROCEEDINGS
The court of arbitration issued its ruling in the
dispute between YIT Industrial
and Network Services and Neste Oil Corporation
on September 30, 2009. The
dispute concerned the mechanical
installation contract of production line 4 at
Neste Oil's Porvoo oil
refinery carried out by YIT between 2004 and 2006. The
court of arbitration
ordered Neste Oil to compensate YIT with EUR 8.7 million on
contracting works
and YIT to compensate Neste Oil with EUR 7.4 million on
postponement
and other compensation. The effect of the ruling on Building and
Industrial
Services' operating profit for Q3/2009 was EUR -3.2 million. YIT has
published stock exchange releases concerning the matter on April 1, 2008,
September 1, 2008 and October 1, 2009.
NUMBER OF EMPLOYEES 23,480
In 2009, the Group employed 24,497 (25,057) people on average. At
the end of the
year, the Group had 23,480 employees (25,784). Of the
personnel, 67 per cent
(67%) were non-salaried employees and 33 per cent
(33%) salaried employees. A
total of 89 per cent (89%) were men and 11 per
cent (11%) women.
In 2009, the number of employees decreased
in all segments. The biggest relative
decrease in the number of personnel took
place in the Baltic countries and
Russia. Due to the weakened general
market conditions, it was agreed to
terminate the employment of about
1,200 people in the Group towards the end of
2008. During 2009, YIT agreed
to terminate the employment of about 1,200 people.
In addition, the Group has
used lay-offs in adjusting the number of personnel.
Personnel by business
segment
----------------------------------------------------------------------------
----
|
| 12/2009 | 12/2008 | Change | Share of
|
| | | | |
the |
| | | | |
Group's |
| | | | |
employees |
| | | |
| 12/2009
|
-----------------------------------------------------------------------------
---
|
Building and Industrial | 17,557 | 18,888 | -7% | 75%
|
| Services | | | |
|
-----------------------------------------------------------------------------
---
|
Construction Services | 2,936 | 3,271 | -10% | 13%
|
| Finland | | | |
|
-----------------------------------------------------------------------------
---
|
International | 2,647 | 3,277 | -19% | 11%
|
| Construction Services | | | |
|
-----------------------------------------------------------------------------
---
|
Corporate Services | 340 | 348 | -2% | 1%
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 23,480 | 25,784 | -9% | 100%
|
-----------------------------------------------------------------------------
---
Personnel
by country
----------------------------------------------------------------------------
----
|
| 12/2009 | 12/2008 | Change | Share of
|
| | | | |
the |
| | | | |
Group's |
| | | | |
employees |
| | | |
| 12/2009
|
-----------------------------------------------------------------------------
---
|
Finland | 9,102 | 10,180 | -11% | 39%
|
-----------------------------------------------------------------------------
---
|
Sweden | 4,193 | 4,523 | -7% | 18%
|
-----------------------------------------------------------------------------
---
|
Norway | 3,248 | 3,280 | -1% | 14%
|
-----------------------------------------------------------------------------
---
|
Russia | 2,600 | 3,089 | -16% | 11%
|
-----------------------------------------------------------------------------
---
|
Germany, Austria, Poland, | 2,160 | 2,094 | 3% | 9%
|
| the Czech Republic, | | | |
|
| Hungary, Romania | | | |
|
-----------------------------------------------------------------------------
---
|
Denmark | 1,269 | 1,448 | -12% | 5%
|
-----------------------------------------------------------------------------
---
|
Lithuania, Estonia, | 908 | 1,170 | -22% | 4%
|
| Latvia | | | |
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 23,480 | 25,784 | -9% | 100%
|
-----------------------------------------------------------------------------
---
DEVELOPMENT
BY BUSINESS SEGMENT
BUILDING AND INDUSTRIAL SERVICES
The Building and Industrial Services segment was formed at the
beginning of 2009
by merging the Building Systems and Industrial Services
segments into a single
segment. Revenue of the Industrial Services is mainly
generated in Finland and
additionally in Sweden and in export countries, and
it amounted to EUR 429.7
million in 2008. In 2008, YIT acquired Central
European building system
operations from Germany, Austria, Poland,
Czech Republic, Hungary and Romania
that were transferred to YIT on August
1, 2008. The revenue of these operations
for August-December 2008 amounted to
EUR 182.6 million and in 2009 to EUR 362.1
million. In January 2010, YIT made
three minor acquisitions in Sweden and one in
Norway.
The segment's revenue
decreased by 11 per cent compared to the year before,
which was
particularly due to a strong decrease in the volume of business
premises construction. Revenue for the fourth quarter was the all-year high
due
to the typical seasonal fluctuations in these businesses. The sales focus
was
shifted from new buildings to renovations and modernisations, from the
private
sector to the public sector, and from project operations to
maintenance. Of the
revenue, service and maintenance operations accounted for
54 per cent (53%) or
EUR 1,151.0 million (EUR 1,260.2 million).
Finland accounted for 28% of revenue (34%), Sweden
for 25% (27%), Norway for 20%
(20%), Denmark for 7% (7%), Central Europe for
18% (8%), the Baltic countries
and Russia for 1% (3%) and export countries
for 2% (2%). Revenue decreased
relatively the most in the Baltic
countries and Russia and Finland.
Operating profit decreased by
26 per cent compared to the year before due to a
decrease in customers' new
investments and a tighter market situation. The court
of arbitration issued
its ruling in the third quarter, decreasing the segment's
operating profit by
EUR 3.2 million. The segment's profitability was stable in
January-September
and improved during the fourth quarter.
The order
backlog decreased by 19 per cent in particular due to decreased
industrial investments and business premises construction. A significant part
of
the segment's maintenance and servicing operations are immediately
performed
assignments that are not included in the order backlog. All of
the additional
works or alterations are neither included in the order
backlog.
The changes in Swedish krona and Norwegian krone
had the most significant
currency movement impact on the business
segment's figures. Exchange rate
changes decreased the revenue in 2009
by EUR 93.3 million and on the other hand
improved the order backlog by EUR
29.8 million compared to the year before. In
local currency terms, revenue
decreased by 7 per cent and order backlog by 22
per cent compared to the
year before. The revenue was affected by the average
exchange rates during
the year end and the order backlog by the exchange rates
at the year's end.
The Building
and Industrial Services segment's business is personnel-based
business
that requires little capital. Capital invested in the business segment
amounted to EUR 418.7 million at the end of the year (EUR 346.8 million).
Return
on investment was 31.4 per cent (54.9%).
The number of personnel in the segment decreased compared to the
year before and
was 17,557 at the end of the year (18,888).
Key figures
----------------------------------------------------------------------------
----
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
-----------------------------------------------------------------------------
---
|
Revenue, MEUR | 2,12 | 2 | -11 % | | 537,9 | 529,2 | 483,9 | 573,9
|
| | 4.9 | 396, | | | | | |
|
| | | 0 | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 1,15 | 1,26 | -9% | | 281.2 | 286.7 | 266.0 | 317.1
|
| service and | 1.0 | 0.2 | | | | | |
|
| maintenance, | | | | | | | |
|
| MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 119. | 162. | -26% | | 28.6 | 28.2 | 24.9 | 37.6
|
| profit, MEUR | 3 | 0 | | | | | |
|
| 1) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 5.6% | 6.7% | - | | 5.3 | 5.3 | 5.1 | 6.6
|
| profit | | | | | | | |
|
| margin, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Order backlog | 850. | 1,05 | -19% | | 1,048 | 984.7 | 946.7 | 850.4
|
| at end of | 4 | 0.2 | | | .3 | | |
|
| period, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Invested | 418. | 346. | 21% | | 347.1 | 371.3 | 395.0 | 418.7
|
| capital at | 7 | 8 | | | | | |
|
| end of | | | | | | | |
|
| period, MEUR | | | | | | | |
|
| 2) | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Personnel at | 17,5 | 18,8 | -7% | | 18,52 | 18,208 | 17,849 | 17,557
|
| end of period | 57 | 88 | | | 7 | | |
|
-----------------------------------------------------------------------------
---
1)
On September 30, 2009, the court of arbitration issued its ruling in the
dispute concerning the mechanical installation contract YIT carried out for
Neste Oil's Porvoo oil refinery. The effect of the ruling on Building and
Industrial Services' operating profit for Q3/2009 was EUR -3.2 million.
2) When calculating invested capital in business segments, the
interest-bearing
financial items have been netted.
Building and Industrial Services' revenue by country,
MEUR
----------------------------------------------------------------------------
----
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
-----------------------------------------------------------------------------
---
|
Finland | 594. | 817. | -27% | | 161.2 | 153.5 | 135.4 | 144.4
|
| | 5 | 9 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Sweden | 532. | 648. | -18% | | 122.7 | 135.0 | 116.9 | 157.7
|
| | 3 | 7 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Norway | 414. | 481. | -14% | | 109.8 | 98.9 | 93.4 | 112.5
|
| | 6 | 6 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Denmark | 145. | 164. | -11% | | 39.0 | 38.9 | 30.6 | 37.4
|
| | 9 | 6 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Germany, | 374. | 183. | 104% | | 87.3 | 88.8 | 93.9 | 104.6
|
| Austria, | 6 | 6 | | | | | |
|
| Poland, the | | | | | | | |
|
| Czech | | | | | | | |
|
| Republic, | | | | | | |
| |
| Hungary, | | | | | | |
| |
| Romania 1) | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Lithuania, | 28.0 | 63.0 | -56% | | 8.8 | 5.1 | 7.9 | 6.2
|
| Estonia, | | | | | | | |
|
| Latvia and | | | | | | | |
|
| Russia | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other | 35.0 | 36.6 | -4% | | 9.1 | 9.0 | 5.8 | 11.1
|
| countries | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 2,12 | 2,39 | -11% | | 537.9 | 529.2 | 483.9 | 573.9
|
| | 4.9 | 6.0 | | | | | |
|
-----------------------------------------------------------------------------
---
1)
The building system service operations acquired from Central Europe were
transferred to YIT on August 1, 2008.
Stable demand for maintenance and energy saving services
The demand for building system repair and maintenance work and
various kinds of
service agreements was relatively steady across all
countries where YIT has a
presence. Agreements were signed on building
system service agreements and
outsourcing in, e.g., logistics premises
and production plants. Municipalities
are seeking new solutions for
arranging their maintenance services, especially
in the Nordic countries.
For instance, technical maintenance of roads and
tunnels was agreed
upon with the Bodo and Salten municipalities in Norway. In
Solna, Sweden,
YIT is responsible for the building system servicing and
maintenance
of approximately one hundred municipality-owned properties.
The
demand for energy-saving solutions and services picked up in the spring in
the Nordic countries, Austria and Germany in particular and continued
steadily
during the rest of the year. Several energy analyses and ESCO
energy saving
agreements were performed in the private and public
sectors.
The demand for industrial plant maintenance
services, solutions that improve
energy efficiency and energy analysis
services continued to be relatively steady
in Finland.
Decrease in new investments
New investments in building
systems decreased across all market areas. The
renovation and
reconstruction market picked up slightly thanks to the start-up
of public
sector stimulus projects.
Industrial investments were fewer than during the year before. In
particular,
investments decreased in process, forest and steel industries,
with the demand
focusing on the energy industry. An extensive piping project
whereby YIT
delivers all the pipelines of a power plant to Siemens AG
started at the Severn
Power natural gas combined cycle power plant in
Uskmouth, United Kingdom.
CONSTRUCTION SERVICES FINLAND
Construction Services Finland's revenue
decreased by 10 per cent compared to the
previous year. Revenue decreased
clearly in the construction of business
premises. In residential
construction and infrastructure services, revenue
remained at last
year's level.
Operating
profit declined by 27 per cent due to a significant decline in the
construction of business premises and residential sales focusing more on
rental
housing production during the first months of the year compared to
previous
year. During the comparison period, the Supreme Court issued a
ruling that had a
positive effect of EUR 3.5 million on the segment's
operating profit for
Q1/2008.
The order backlog increased by 15 per cent
compared to the end of the previous
year. The order backlog increased
especially in connection with an increase in
residential start-ups.
In Construction Services
Finland, development production mainly ties up capital
in the plot reserves,
their development and ongoing production. Infrastructure
and other contract
construction require only little capital. Capital invested in
the business
segment decreased and amounted to EUR 315.7 million at the end of
the year
(EUR 482.9 million). Plot investments were decreased in 2009, amounting
to EUR
54.0 million (EUR 61.6 million). Return on investment was 20.5% (28.0%).
The number of personnel in the segment decreased compared to the year
before and
was 2,936 at the end of the year (3,271).
Key figures
----------------------------------------------------------------------------
----
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
-----------------------------------------------------------------------------
---
|
Revenue, MEUR | 1,02 | 1,14 | -10% | | 239.8 | 253.0 | 246.3 | 290.6
|
| | 9.7 | 7.9 | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 71.5 | 68.5 | 4% | | 19.5 | 15.2 | 20.2 | 16.6
|
| service and | | | | | | | |
|
| maintenance, | | | | | | | |
|
| MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 81.9 | 111. | -27% | | 20.9 | 19.9 | 20.8 | 20.3
|
| profit, MEUR | | 7 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 8.0% | 9.7% | - | | 8.7 | 7.9 | 8.4 | 7.0
|
| profit | | | | | | | |
|
| margin, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Order backlog | 1,00 | 874. | 15% | | 819.8 | 846.9 | 909.9 | 1,007
|
| at end of | 7.5 | 2 | | | | | |
.5 |
| period, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Invested | 315. | 482. | -35% | | 435.5 | 481.2 | 427.4 | 315.7
|
| capital at | 7 | 9 | | | | | |
|
| end of | | | | | | | |
|
| period, MEUR | | | | | | | |
|
| 1) | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
- in plot | 325. | 350. | -7% | | 363.2 | 354.6 | 340.7 | 325.6
|
| reserves, | 6 | 5 | | | | | |
|
| MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at | 2,93 | 3,27 | -10% | | 3,119 | 3,208 | 2,971 | 2,936
|
| end of period | 6 | 1 | | | | | |
|
-----------------------------------------------------------------------------
---
1)
When calculating invested capital in business segments, the interest-bearing
financial items have been netted.
At the end of the year the plot reserves included 1,630,000 m2 of floor
area
(1,770,000 m2 of floor area) of residential plots and 908,000 m2 of
floor area
(827,000 m2 of floor area) of plots for business premises. Plot
reserves include
off-balance sheet items. Plot reserves include plots that
have been planned and
an estimate of the potential building rights on areas
that are under land use
planning. The building rights provided by regional
development agreements made
with landowners remain as off-balance sheet
items until the construction of each
phase of the plan being implemented
begins or YIT pays for the plots in
accordance with the agreements.
Residential sales picked up
Due to uncertainties in
the market conditions, housing construction focused on
rental housing
production during the first months of the year. As the
residential
sales picked up the focus was turned back on own development
projects.
YIT sold 276 residential units to consumers during the first quarter,
401
during the second quarter, 380 during the third quarter and 510 during the
fourth quarter. The price level of housing developed positively at the later
part of the year.
The volume of residential start-ups for consumers was increased in each
quarter
in order to ensure a sufficient number of apartments on sale.
Geographically
extensive operations and plot reserves made it possible to
react swiftly to
changes in the market conditions. At the end of the
year, YIT had on sale a
total of 1,061 residential units, of which 216
had been completed. The
residential units on sale consist of
apartments in different sizes. In the
market the number of own housing
development projects started up was lower than
during the previous years.
Projects constructed for
investors were started up throughout the year in
accordance with
previous agreements. The most significant agreement on rental
housing was
signed in August when YIT sold five rental housing projects with a
total of
some 300 residential units to ICECAPITAL Housing Fund II for EUR 36.6
million. An agreement was signed with Tapiola Real Estate on the construction
of
a total of 225 residential units in the Helsinki region and the Uusimaa
province. Agreements were also made with VVO and Tarveasunnot, among
others.
The number of residential units sold and residential units under
construction on
the whole exceeded the previous year considerably with both
rental housing
production and YIT's own development projects underway.
In Finland, the average
construction time of a residential project is
approximately one year. About half
of YIT's ongoing projects will be completed
during 2010 and half in 2011.
Residential construction in Finland in
2009 (2008), number of residential units
----------------------------------------------------------------------------
----
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
-----------------------------------------------------------------------------
---
|
Sold | 3,50 | 1,92 | 82% | | 436 | 896 | 982 | 1,188
|
| | 2 | 0 | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 1,56 | 1,46 | 7% | | 276 | 401 | 380 | 510
|
| directly to | 7 | 2 | | | | | |
|
| consumers | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Start-ups | 3,44 | 1,54 | 124% | | 239 | 817 | 1,139 | 1,252
|
| | 7 | 2 | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 1,52 | 1,08 | 41% | | 90 | 327 | 537 | 574
|
| aimed | 8 | 4 | | | | | |
|
| directly to | | | | | | | |
|
| consumers | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Completed | 1,56 | 2,46 | -37% | | 440 | 409 | 288 | 425
|
| | 2 | 4 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Under | 3,77 | 1,88 | 100% | | 1,686 | 2,095 | 2,946 | 3,773
|
| construction | 3 | 7 | | | | | |
|
| at the end of | | | | | | | |
|
| the period | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 2,92 | 1,13 | 148% | | 1,141 | 1,563 | 2,215 | 2,928
|
| sold at the | 8 | 4 | | | | | |
|
| end of the | | | | | | | |
|
| period | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Unsold at the | 1,06 | 1,11 | -5% | | 921 | 834 | 997 | 1,061
|
| end of the | 1 | 1 | | | | | |
|
| period | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 216 | 358 | -40% | | 366 | 302 | 266 | 216
|
| completed | | | | | | | |
|
-----------------------------------------------------------------------------
---
Lower
volume in business premises construction than in the previous year
The volume of business premises construction decreased clearly compared to
the
previous year. Construction of offices and industrial premises declined
significantly. Demand for new business and warehouse premises remained
moderate.
The start up of stimulus measures by the public sector increased
slightly the
demand for renovation and modernisation projects.
The business focused on completing ongoing projects and
obtaining leaseholders
for new, ongoing and completed sites. YIT put effort
on the tenant and project
development activities and in activating investor
sales. Some new development
projects were started during the year and
contracts were won in competitive
bidding. In addition, several
renovation and modernisation projects were carried
out.
With regard to projects
as the Group's own development, the sports and wellness
centre located in
Salmisaari, Helsinki was sold to Varma Mutual Pension
Insurance
Company in January. In November, YIT sold a shopping centre located in
Joensuu
to Fennia Mutual Insurance Company after the agreement made in 2007 with
a
Danish real estate investor on the premises had been cancelled.
The construction of the first low-energy office and commercial building was
started in Järvenpää in the autumn.
From now on, all new offices constructed by
YIT will be low-energy offices, consuming less energy than required
by current
regulations.
Infrastructure construction is steady
The demand for infrastructure construction was decreased
by the lower
construction levels of new housing and business
premises and the impaired state
of the municipal economy. Several
infrastructure projects concerning basic road
and railway maintenance started
in Finland, boosted by state stimulus measures.
The demand for environmental
restoration services was good. Infrastructure
construction developed
steadily as a whole.
YIT has special
expertise in infrastructure construction in rock excavations,
maintenance
works and municipal services. As for large-scale road projects, a
project
of EUR 17 million with bridge and road work was started in the centre
of
Savonlinna. A tunnel for the Kehärata (Ring line) projects was started in
Vantaa. As regards municipal services, the City of Varkaus outsourced the
production and maintenance of its streets, water supply and outdoor
lighting. In
addition, lifecycle projects were implemented for municipalities,
covering
repair investments and maintenance of sites.
INTERNATIONAL CONSTRUCTION SERVICES
International Construction Services' revenue decreased
by 27 per cent compared
to the previous year due to the weaker market
conditions. Revenue decreased by
17 per cent in Russia and by 63 per cent in
the Baltic countries. Russia
accounted for 85 per cent (75%) of the
revenue for 2009, the Baltic countries
for 12 per cent (24%). Revenue
increased during all quarters of the year as
Russian residential sales
picked up and the construction of sites progressed.
The segment's
operating profit for 2009 was negative. Operating profit turned
positive
during the third quarter and continued to improve during the fourth
quarter. The segment's operating profit was weakened on account of the volume
of
residential sales in the first part of the year falling short of the
previous
year, housing prices being at a lower level than last year, the
low volume of
business premises construction in Russia and the Baltic
market continuing to be
weak. The project margin forecasts of the business
segment were weakened in
particular during the first quarter. Write-downs
of approximately EUR 7 million
were recognised during the year for the plot
reserves mainly located in Latvia
and Lithuania.
The order backlog of International
Construction Services decreased by 30 per
cent compared to the year
before. Residential projects under construction in
Russia were recognised
as income as construction and sales proceeded. During the
year there were more
apartments sold than apartment start-ups. Due to market
uncertainties, the
construction of residential projects in the start-up phase in
Russia in
projects whose sales had not yet begun was suspended in October 2008.
At the
end of 2009, the value of the projects that were still suspended amounted
to
EUR 282 million in the order backlog (12/08: EUR 356 million).
Exchange rate changes of the ruble decreased the revenue in 2009 by EUR
65.2
million and order backlog by EUR 41.1 million compared to the year
before. When
the figures for Russia are calculated in local currency, the
change in revenue
for the business segment was -14 per cent and change in
the order backlog was
-27 per cent compared to the previous year.
In International Construction Services, capital
has been tied mainly to ongoing,
completed and suspended production and
additionally to the plot reserves and
their development. Capital invested
in the business segment amounted to EUR
681.3 million (EUR 653.1 million)
at the end of 2009. No new housing projects
were started in early 2009, and
investments were decreased considerably. Housing
start-ups were restarted once
sales picked up and the market conditions improved
again in September, and
decisions on a few new plot investments were made during
the fourth quarter.
Return on investment was -2.7 per cent (1.7%).
The Group's
capital invested in Russia is primarily accounted for by the
International Construction Services segment. At the end of the year, the
Group's
capital invested in Russia amounted to EUR 582.3 million (EUR 545.2
million).
The amount of capital invested in Russia was increased by capital
tied to
unfinished and completed production. The devaluation of the
ruble decreased the
amount of capital invested in Russia by EUR 26.4 million
compared to the
previous year.
During the latter half of the year, YIT increased
its holding in YIT Kausta in
Lithuania to 97.5 per cent, in Russia in YIT
Uralstroi to 99.9 per cent and in
YIT Don to 78 per cent. In January 2010,
YIT increased its holding in YIT Don to
100 per cent.
Key figures
----------------------------------------------------------------------------
----
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
-----------------------------------------------------------------------------
---
|
Revenue, MEUR | 359. | 493. | -27% | | 61.4 | 87.4 | 97.6 | 113.0
|
| | 4 | 5 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | -17. | 9.0 | -298% | | -23.8 | -5.2 | 3.7 | 7.5
|
| profit, MEUR | 8 | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | -5.0 | 1.8% | - | | -38.7 | -5.9 | 3.8 | 6.6
|
| profit | % | | | | | | |
|
| margin, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Order backlog | 960. | 1,36 | -30% | | 1,239 | 1,126. | 998.4 | 960.1
|
| at end of | 1 | 9.3 | | | .1 | 8 | |
|
| period, MEUR | | | | | | | |
|
| 1) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Invested | 681. | 653. | 4% | | 632.8 | 667.9 | 677.1 | 681.3
|
| capital at | 3 | 1 | | | | | |
|
| end of | | | | | | | |
|
| period, MEUR | | | | | | | |
|
| 2) | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
- in plot | 246. | 228. | 8% | | 218.7 | 235.4 | 244.8 | 246.5
|
| reserves, | 5 | 9 | | | | | |
|
| total | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
- in plot | 171. | 145. | 18% | | 136.1 | 157.8 | 166.9 | 171.7
|
| reserves in | 7 | 7 | | | | | |
|
| Russia | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
- in plot | 74.8 | 83.2 | -10% | | 82.6 | 77.6 | 77.7 | 74.8
|
| reserves in | | | | | | | |
|
| the Baltic | | | | | | | |
|
| countries | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at | 2,64 | 3,27 | -19% | | 3,214 | 2,965 | 2,841 | 2,647
|
| end of period | 7 | 7 | | | | | |
|
-----------------------------------------------------------------------------
---
1)
The order backlog includes residential projects suspended in Russia in
October 2008. At the end of 2009, the value of the projects that were still
suspended amounted to EUR 282 million in the order backlog (12/08: EUR 356
million).
2) When calculating invested capital in business segments, the
interest-bearing
financial items have been netted.
At the end of the year the plot reserves in Russia
included 1,974,000 m2 of
floor area (2,256,000 m2 of floor area) of
residential plots and 563,000 m2 of
floor area (565,000 m2 of floor area) of
plots for business premises. The plot
reserves in the Baltic countries
included 353,000 m2 of floor area (398,000 m2
of floor area) of residential
plots and 136,000 m2 of floor area (62,000 m2 of
floor area) of plots for
business premises.
International
Construction Services' revenue by country, MEUR
----------------------------------------------------------------------------
----
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
-----------------------------------------------------------------------------
---
|
Russia | 305. | 368. | -17% | | 45.9 | 72.3 | 85.2 | 102.3
|
| | 7 | 2 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Lithuania, | 44.3 | 118. | -63% | | 14.7 | 14.0 | 11.6 | 4.0
|
| Estonia, | | 7 | | | | | |
|
| Latvia | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other | 9.4 | 6.6 | 42% | | 0.8 | 1.1 | 0.8 | 6.7
|
| countries | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Total | 359. | 493. | -27% | | 61.4 | 87.4 | 97.6 | 113.0
|
| | 4 | 5 | | | | | |
|
-----------------------------------------------------------------------------
---
Residential
sales strengthened in Russia as the year advanced
YIT is
involved in its own housing development projects in St Petersburg,
Moscow, cities in the Moscow region, Yekaterinburg, Rostov-on-Don and Kazan.
Housing sales strengthened in Russia during every quarter of 2009. YIT
sold 323
residential units in Russia during the first quarter, 494 during the
second
quarter, 829 during the third quarter and 966 during fourth
quarter. A majority
of the residential units were sold directly to consumers.
In December, YIT sold
90 residential units in Moscow's surroundings to the
Ministry of Defence in a
single transaction.
Sales received a boost from greater consumer
confidence in YIT, the company's
own marketing and sales measures, a more
appealing offering when sites are
completed or are nearing completion
and improved credit availability and terms
for the customers. In order to
support sales, YIT agreed on cooperation with
several banks, whereby YIT
customers now have the option to take out a mortgage
under special terms and
conditions. In St. Petersburg, approximately one-fifth
of residential sales
made with YIT in October-December were made with loan
financing. In
other cities where the company operates loan financing was
utilised
less frequently.
Housing prices decreased in rubles on average, varying by city,
approximately on
one-fifth between September 2008 and October 2009. The rate
of decline in
housing prices slowed down during the third quarter of
2009, and prices remained
steady for the rest of the year. The supply of
housing in the market declined in
2009 after numerous constructors had halted
their projects, thereby increasing
YIT's market share in residential sales.
Some construction companies restarted
their halted projects towards the end
of the year.
YIT started the construction of
672 residential units during the last months of
the year. The first new
residential site since summer 2008 was started in
September 2009 in one
of the cities surrounding Moscow, Zhukovsky. Residential
construction
projects were started up in the Moscow region, Moscow and St.
Petersburg
during the fourth quarter. The housing sales portfolio improved
following the completion of sites and new residential start-ups.
The costs of completing the 4,174 residential units under construction
are
estimated to be approximately EUR 178 million. The residential
start-ups in 2009
account for EUR 42 million of the costs of completion.
Capital is freed up
simultaneously with the sale of residential units.
In Russia the projects are
long and the value of them is large. The
majority of the projects under
construction will be completed during
2010.
Residential construction in
Russia in 2009 (2008), number of residential units
----------------------------------------------------------------------------
----
|
| 1-12 | 1-12 | Change | | 1-3/0 | 4-6/09 | 7-9/09 | 10-12/
|
| | /09 | /08 | 1-12/ | | 9 | | |
09 |
| | | | 08 - | | | | |
|
| | | | 1-12/0 | | | | |
|
| | | | 9 | | | |
|
|
-----------------------------------------------------------------------------
---
|
Sold | 2,61 | 2,79 | -6% | | 323 | 494 | 829 | 966
|
| | 2 | 3 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Start-ups | 672 | 3,62 | -81% | | 0 | 0 | 105 | 567
|
| | | 2 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Completed | 4,96 | 2,60 | 91% | | 1,524 | 937 | 0 | 2,499
|
| | 0 | 0 | | | | | |
|
-----------------------------------------------------------------------------
---
|
Under | 4,17 | 8,40 | -50% | | 6,874 | 5,969 | 6,080 | 4,174
|
| construction | 4 | 7 | | | | | |
|
| at the end of | | | | | | | |
|
| the period 1) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 1,81 | 3,12 | -42% | | 2,523 | 2,004 | 2,532 | 1,814
|
| sold at the | 4 | 0 | | | | | |
|
| end of the | | | | | | | |
|
| period | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Unsold at the | 3,60 | 5,53 | -35% | | 5,218 | 4,747 | 4,014 | 3,603
|
| end of the | 3 | 4 | | | | | |
|
| period | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
- of which | 1,24 | 247 | 403% | | 867 | 782 | 466 | 1,243
|
| completed | 3 | | | | | | |
|
-----------------------------------------------------------------------------
---
1)
Due to the uncertain market situation, YIT made a decision in October 2008
to
suspend the construction of residential projects in the start-up phase in
Russia
in projects whose sales had not yet begun. The residential units whose
construction was suspended are not included in the residential units
under
construction in the above table, as the restarting of their
construction will be
handled as new building start-ups. Changes in the number
of residential units
may take place after the start of construction due to
the division or
combination of residences.
Development of the Gorelovo industrial park
continued
The development of the Gorelovo
industrial park in St. Petersburg was continued
in the autumn by starting up
the realisation of production and distribution
logistics premises used in
packaging cosmetic products for Dermosil. The
development of business
premise projects was also continued in Moscow and its
vicinity. YIT signed
a strategic partnership agreement with BPT on business
premise
development.
The
water and drain connections of the food plant completed in the Gorelovo
area
were connected in October 2009, and the authorities granted the official
permits
for putting into operation the production plant at the end of
December. Thus,
YIT's obligations based on the agreements made with the
customer have been
fulfilled.
Weak market situation in the Baltic countries
The market situation remained weak in the
Baltic countries. Competition for
construction projects was tight and
production volumes were low. The market
price level of housing dropped on
average to approximately half of what it was
at the end of 2007.
The focus of YIT's
operations was shifted from residential construction to
contracting in
the Baltic countries. Minor construction contracts were won,
making it
possible to halt the rapid decrease in operational volumes. The
largest
construction sites were mainly production and logistics premises for
Western customers in Estonia and Lithuania.
No new residential projects were started up during 2009, but the
preparation of
new projects continued. In 2009, 256 (1-12/08: 733)
residential units were sold
in Lithuania, Estonia and Latvia. Of these units,
53 were sold during the first
quarter, 147 during the second quarter, 50
during the third quarter and 6 during
the fourth quarter. 592 (736)
residential units were completed during the
period. No residential
units were under construction at year's end (12/08: 592).
At the end of the
year, YIT had 40 (296) unsold residential units.
SHARES, SHARE
OPTIONS AND SHAREHOLDERS
The
company has one series of shares. Each share carries one vote and confers
an
equal right to a dividend.
Shares could be subscribed for in 2009 under the Series M and N share
options
issued in 2006 between April 1 and November 30, 2009. The
subscription period
under the Series M share options ended on November 30,
2009.
Share capital and number of shares
YIT Corporation's share capital was EUR
149,216,748.22 at the beginning of the
review period, and the number of
shares outstanding was 127,223,422. The share
capital and number of shares
did not change during the year.
Own shares and
authorisations of the Board of Directors
In
accordance with the Companies Act, the General Meeting decides on the
buyback
and conveyance of shares, as well as any decisions leading to changes
in the
share capital.
At the beginning of 2009, YIT Corporation held 1,425,000 of its
own shares,
purchased based on the authorisation given by the General
Meeting of October 6,
2008.
The Annual General Meeting of YIT Corporation
resolved on March 11, 2009, to
authorise the Board of Directors to
purchase the company's shares and to dispose
of them, as proposed by the Board
of Directors. The authorisation granted to the
Board of Directors covers the
acquisition of a maximum of 10,100,000 company
shares, purchased with the
company's unrestricted equity, and the assignment of
a maximum of 12,700,000
of the shares bought back for and held by the company.
The authorisation
overrides the authorisation to purchase and divest the
company's own
shares issued by the Extraordinary General Meeting on October 6,
2008.
Between
February 10 and February 23, 2009, YIT purchased 720,000 of its own
shares at an average price of EUR 5.6. At the end of 2009, YIT Corporation
held
2,145,000 of its own shares. During the period, no shares in the parent
company
were owned by subsidiaries.
There were no share issues during the year and the company did
not float
convertible bonds or bonds with warrants. At the end of the
period, the parent
company's Board of Directors did not have valid share
issue authorisations or
authorisations to issue convertible bonds or bonds
with warrants.
Trading in the shares and share options
At the end of 2009, the closing rate of
YIT's share was EUR 14.45 (2008: EUR
4.58). YIT's share price increased by
216 per cent during 2009. The highest
price of the share during 2009 was
EUR 14.49 (EUR 19.99), the lowest EUR 4.31
(EUR 3.70). The average price
was EUR 8.52 (EUR 10.89).
Market capitalisation at
the end of the year was EUR 1,807.4 million (EUR 576.2
million). The market
capitalisation at the end of year has been calculated
excluding the
shares held by the company.
Share
turnover in 2009 amounted to 190,057,125 shares (295,155,593). The value
of
share turnover was EUR 1,631.4 million (EUR 3,221.4 million). The average
daily turnover was 757,200 shares (1,166,623).
No Series M or N share options issued in 2006 were traded in 2009.
Number of shareholders: 29,678
The number of registered shareholders was 25,515 (15,265) at the
beginning of
the review period and 29,678 (25,515) at the end of the
period. The number of
households among the owners increased by 4,070. At
the beginning of the year, a
total of 36.5 per cent (52.9%) of the shares
were owned by nominee-registered
and non-Finnish investors, while this
figure was 38.7 per cent (36.5%) at year's
end.
During 2009, one notification
of changes in holdings was made in accordance with
Chapter 2, section 9 of the
Securities Market Act. Suomi Mutual Life Assurance
Company notified that its
holdings have decreased to below 5 per cent of YIT
Corporation's shares
and votes following a share transaction on April 3, 2009.
The company held a
total of 6,184,119 YIT shares, which equals 4.86 per cent of
YIT
Corporation's shares.
ESTIMATE OF FUTURE DEVELOPMENT
Market outlook
In the Building and Industrial Services segment, the slight
increase in the
demand for service and maintenance operations for
building systems will
continue. The increasing amount of technology
in buildings and low new
investments will increase the need for
service and maintenance operations. The
economic recession will open new
opportunities for outsourcing real estate
services. The demand for
energy-efficiency services will increase in the next
few years in the
Nordic countries, Germany and Austria in particular with public
sector
stimulus measures and renewed environmental legislation. New investments
in
office and retail properties will remain slight. In new construction
projects, public sector investments will be realised. The increase in the
demand
for renovation and reconstruction projects will continue with the
support of
public sector stimulus measures and renovation subsidies.
Industrial investments
are low in Finland, but the demand for industrial
maintenance services will
continue relatively stable.
With regard to Construction Services
Finland, housing demand is expected to
remain good, construction of
business premises to decrease and infrastructure
construction to remain
relatively steady. The demand for owner-occupied housing
will be supported by
low interest rates, an increase in consumer confidence and
the limited
housing supply. The need for new housing is also maintained by the
decreasing family sizes, migration and increasing population. Decreased
employment rates and rising interest rates may increase insecurity in the
housing market in the future. With regard to the business premises
market,
construction of offices and industrial premises will decline.
Demand for retail
and warehouse premises will remain moderate. The need for
renovation is rising
steadily. State stimulus measures will increase the
public sector construction
projects, but the weakness of municipal finances
leads to uncertainty concerning
the number of public sector construction
projects. New projects related to
transportation will begin in the
Finnish infrastructure market in 2010; at the
same time the demand in the
municipal sector will decrease. Opportunities will
also open in connection
with road and regional maintenance contracts. Capacity
underutilisation in
infrastructure construction keeps the competitive situation
tight.
As for
International Construction Services, housing demand in Russia is expected
to
remain good, and a slight recovery can be expected in the Baltic countries.
There is still a great need for housing in Russia, and the demand outlook for
residential units aimed at YIT's customer segment is unchanged in the long
term.
Russia's economic situation and consumer behaviour are strongly
dependent on the
development of oil prices and the ruble exchange rate. In
addition the
development of the functionality of housing finance,
employment rates, interest
rates and purchasing power affect residential
sales. The construction market has
reached an extremely low level in the
Baltic countries. Due to the extensive
impact of the recession, no
significant recovery of the market conditions can be
expected in the near
future; however there are signs of a recovery in the
housing market and
there have been some new project start-ups in the market. In
Russia, the
underutilisation rate of offices is high and their construction is
low, but
the demand for industrial and retail premises is increasing. Minor
business premise projects are underway in the Baltic market.
Strategic targets
YIT Corporation's Board of Directors confirmed the Group's strategy
for
2010-2012 on August 19, 2009. The Group's strategic target levels
are: average
annual revenue growth of 5-10 per cent, 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.
In Building and Industrial Services, YIT
aims to be the leading provider of
technical system maintenance in the
Nordic countries and Central Europe and a
forerunner in energy-saving
services. The target is to increase the service and
maintenance operations
faster than other operations. Growth is sought both
organically and
through acquisitions.
In
Construction Services Finland, YIT's aim is to strengthen its position in
all
of its three key construction areas - housing, business premises and
infrastructure. With regard to residential construction, development
projects
will be increased so that the turnover of capital is accelerated.
In business
premises, the focus will be on developing and repairing
existing properties
during the beginning of the strategy period. In
infrastructure services, the
market position will be reinforced and
maintenance activity will be increased.
In International Construction
Services, YIT aims to increase its residential
production responding to
the market demand. The strong need for housing has not
decreased, and the
demand outlook for residential units aimed at YIT's customer
segment is
favourable in the long term, which provides opportunities for growth.
Also in
the Baltic countries and Central Eastern Europe, YIT will aim to take
advantage of emerging market opportunities. Additionally, YIT seeks to boost
the
capital efficiency and higher profitability in the business segment.
Major business risks and uncertainties
YIT has specified the major risk factors and their management from
the point of
view of the Group as a whole, taking the special characteristics
of YIT's
business operations and environment into consideration. Risks
are divided into
strategic, operational, financial and event risks. A more
detailed account of
YIT's risk management policy and the most significant
risks is published in the
Annual Report 2009. Financing risks are described
in more detail in the notes to
the financial statements for 2009.
The most significant operational short-term
business risks and uncertainties are
connected with the continuity of the
favourable development of residential sales
and the sales and price risk of
the order backlog mainly due to unsold
residential units. At the end
of the year, YIT's residential units under
construction or completed
but unsold totalled 3,603 in Russia, 1,061 in Finland
and 40 in the Baltic
countries. In addition, there are 2,145 residential units
in Russia whose
construction has been suspended. YIT manages sales risk by
matching the
number of housing start-ups with the estimated residential demand
and the
number of unsold residential units. Housing start-ups were increased
towards the end of the year in order to ensure a sufficient number of
apartments
on sale. A more detailed account of the structure of the order
backlog is
presented above under Order Backlog. An account of housing
production and
related measures can be found under Development by
business segment.
There is a currency risk related to
investments in ruble terms. The Group's
invested capital in Russia
amounted to EUR 582.3 million at year's end. At the
turn of the year
2008-2009, net equity investments in Russia were increased by
classifying a
part of the loans given to the subsidiaries as fixed net
investments. Net investments totalled EUR 368.5 million at the end of the
year.
Net investments in the Russian subsidiaries are unhedged in accordance
with the
finance policy, and the possible devaluation of the ruble would have
a negative
impact equal to the amount of decrease in equity on the Group's
shareholders'
equity. Debt investments amounted to EUR 213.9 million at the
end of the year,
and this exposure was hedged in full. The difference in the
interest rates
between the euro and ruble has an effect on hedging costs
and therefore net
financial expenses.
YIT tests the value of its plots as required by the
IFRS accounting principles.
Plot reserves are measured at acquisition cost
and the value is impaired when it
is estimated that the building being
constructed on the plot will be sold at a
price lower than the sum of the
price of the plot and the construction costs.
Write-downs of approximately
EUR 7 million were recognised during the yearly
mainly for the plot
reserves in Latvia and Lithuania.
OUTLOOK FOR
2010
YIT
Corporation estimates that the Group's revenue will increase and profit
before taxes will increase significantly in 2010 compared to 2009.
The demand for housing is expected to remain good in 2010 in Finland as
well as
Russia.
In Finland, the residential demand is supported by low interest
rates, increased
consumer confidence and structural factors, such as
migration, increasing
population and decreasing family sizes. The price
level of apartments has
developed positively. There is a low supply of
new residential units in the
market. YIT has started up new residential
projects in 2009, which offers a
solid starting point for 2010. At the
end of 2009, YIT had 3,773 residential
units under construction. There
were 1,061 residential units on sale, of which
216 had been completed. Good
plot reserves, geographically extensive operations
and the ability to react
swiftly to changes in the market enable YIT to increase
residential
development activity in 2010.
There
is a great need for new housing in Russia, and therefore the demand
outlook for residential units aimed at YIT's customer segment is unchanged in
the long term. At the end of 2009, housing prices have stabilized and
consumer
confidence has increased. New residential projects have been
started up in the
market, but the supply is still limited. At the end of
2009, YIT had 4,174
residential units under construction. There were
3,603 residential units on
sale, of which 1,243 had been completed. YIT
has improved its reputation as a
reliable construction company and
developed its sales process. The company has
increased the availability of
loans for its customers through co-operation with
banks. YIT started new
residential projects during the last months of 2009 and
in 2010 the
residential start-ups are increased responding to the market
demand.
Residential demand is affected by consumer confidence, employment
situation and
interest rate development both in Finland and Russia.
Additionally, in Russia
the residential demand is dependent on oil prices
and the exchange rate of the
ruble.
The opportunities for organic growth in
Building and Industrial Services are
supported by the need for service and
maintenance as well as renovation and
public sector projects. There is a
large number of small companies operating in
building system markets and the
consolidation development provides opportunities
for acquisitions. Industrial
investments are low in Finland, but the demand for
industrial maintenance
services will continue relatively stable. New investments
in technical
building systems will decrease in all YIT markets, particularly due
to the low
volumes of business premises construction. YIT has an extensive
network
of local offices in the markets where it operates and a solid market
position in building system and industrial service and maintenance
operations,
projects and energy-efficiency services.
New projects related to transportation will begin in the
Finnish infrastructure
market in 2010; at the same time the demand in the
municipal sector will
decrease. Opportunities will also open in
connection with road and regional
maintenance contracts. YIT has
large-scale route projects underway in
infrastructure services. The
Group has special expertise in infrastructure and a
solid position as
Finland's largest private provider of road maintenance
services.
BOARD OF
DIRECTORS' PROPOSAL FOR THE USE OF DISTRIBUTABLE EQUITY
The distributable equity of YIT Corporation on December 31, 2009 amounts
228,281,847.21 euros, of which profit for the financial year 2009 is
54,474,447.59 euros.
The Board of directors proposes that the profit be disposed of
as follows:
Payment of a dividend
EUR 0.40 per share to shareholders 50,031,368.80
Remains in distributable equity 178,250,478.41
228,281,847.21
Further the Board of Directors proposes that the Annual General Meeting
grants
the Board the authority to donate the sum of no more than EUR 500,000
to support
activities of colleges and universities and, in the same context,
that the Board
of Directors be authorised to decide the schedule of payments
and any other
terms and conditions governing the donations.
No significant changes have taken place in the
company's financial position
after the end of the financial year. The
company's liquidity is good and in the
view of Board of Directors the
proposed dividend payout does not jeopardise the
company's solvency.
Helsinki, February 3,
2010
Henrik
Ehrnrooth Eino Halonen
Chairman
Vice chairman
Reino Hanhinen
Antti Herlin
Satu Huber
Lauri Ratia
Kim Gran
Juhani Pitkäkoski
President and CEO
FINANCIAL STATEMENTS BULLETIN JAN 1 - DEC
31, 2009: TABLES
(The financial statements bulletin is
based on the audited financial statements
for 2009.)
1. Key figures of YIT Group
Key figures
YIT Group figures by
quarter
Segment
information by quarter
2.
Consolidated financial statements January 1 - December 31, 2009
Consolidated income statement January 1 - December 31, 2009
Statement of comprehensive income January 1 - December 31, 2009
Consolidated income statement October 1 - December 31, 2009
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated cash flow statement
3. Notes
Accounting principles of the financial statements
bulletin
Financial risk management
Segment information
Unusual items affecting operating profit
Acquired and divested businesses
Changes in property, plant and
equipment
Inventories
Notes on equity
Interest-bearing
liabilities
Change in
contingent liabilities and assets and commitments
Transactions with associated companies
1. KEY FIGURES OF YIT GROUP
KEY FIGURES
----------------------------------------------------------------------------
----
|
| 12/2009 | 12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Earnings per share, EUR | 0.53 | 1.05 | -50%
|
-----------------------------------------------------------------------------
---
|
Diluted earnings per share, EUR | 0.53 | 1.05 | -50%
|
-----------------------------------------------------------------------------
---
|
Equity per share, EUR | 6.38 | 6.38 | -
|
-----------------------------------------------------------------------------
---
|
Average share price during the | 8.52 | 10.89 | -22%
|
| period, EUR | | |
|
-----------------------------------------------------------------------------
---
|
Share price at end of period, EUR | 14.45 | 4.58 | 216%
|
-----------------------------------------------------------------------------
---
|
Market capitalization at end of | 1,807.4 | 576.2 | 214%
|
| period, MEUR | | |
|
-----------------------------------------------------------------------------
---
|
Weighted average share-issue adjusted | 125,167 | 127,104 | -2%
|
| number of shares outstanding, | | |
|
| thousands | | |
|
-----------------------------------------------------------------------------
---
|
Weighted average share-issue adjusted | 125,167 | 127,104 | -2%
|
| number of shares outstanding, | | |
|
| thousands, diluted | | |
|
-----------------------------------------------------------------------------
---
|
Share-issue adjusted number of shares | 125,078 | 125,798 | -1%
|
| outstanding at end of period, | | |
|
| thousands | | |
|
-----------------------------------------------------------------------------
---
|
Net interest-bearing debt at end of | 497.7 | 644.5 | -23%
|
| period, MEUR | | |
|
-----------------------------------------------------------------------------
---
|
Return on investment, from the last | 10.9 | 17.5 | -38%
|
| 12 months, % | | |
|
-----------------------------------------------------------------------------
---
|
Return on equity, % | 8.2 | 16.5 | -50%
|
-----------------------------------------------------------------------------
---
|
Equity ratio, % | 33.8 | 30.7 | 10%
|
-----------------------------------------------------------------------------
---
|
Gearing ratio, % | 62.2 | 79.8 | -22%
|
-----------------------------------------------------------------------------
---
|
Gross capital expenditures, MEUR | 27.7 | 85.2 | -67%
|
-----------------------------------------------------------------------------
---
|
% of revenue | 0.8 | 2.2 | -64%
|
-----------------------------------------------------------------------------
---
|
Order backlog at end of period, MEUR | 2,773.6 | 3,233.7 | -14%
|
| 1) | | |
|
-----------------------------------------------------------------------------
---
|
of which order backlog outside | 1,549.0 | 2,118.9 | -27%
|
| Finland | | |
|
-----------------------------------------------------------------------------
---
|
Average number of personnel | 24,497 | 25,057 | -2%
|
-----------------------------------------------------------------------------
---
1)
Portion of binding orders and own development projects not recognized as
income.
YIT GROUP FIGURES BY QUARTER
----------------------------------------------------------------------------
----
|
| I/20 | II/2 | III/ | IV/20 | I/200 | II/20 | III/2 | IV/20
|
| | 08 | 008 | 2008 | 08 | 9 | 09 | 009 |
09
|
-----------------------------------------------------------------------------
---
|
Revenue, MEUR | 927. | 991. | 970. | 1,050 | 823.7 | 853.1 | 815.0 | 960.5
|
| | 0 | 2 | 8 | .7 | | | |
|
-----------------------------------------------------------------------------
---
|
Operating | 78.6 | 70.5 | 63.1 | 48.4 | 22.1 | 38.1 | 45.6 | 59.7
|
| profit, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
% of revenue | 8.5 | 7.1 | 6.5 | 4.6 | 2.7 | 4.5 | 5.6 | 6.2
|
-----------------------------------------------------------------------------
---
|
Financial | 3.2 | 0.6 | 0.9 | 1.2 | 1.3 | 0.4 | 0.9 | 1.9
|
| income, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Exchange rate | -0.8 | -2.6 | 6.0 | -27.6 | -9.6 | -5.1 | -7.8 | -5.9
|
| differences, | | | | | | | |
|
| MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Financial | -10. | -8.0 | -13. | -16.7 | -11.6 | -8.2 | -8.8 | -6.1
|
| expenses, MEUR | 7 | | 0 | | | | |
|
-----------------------------------------------------------------------------
---
|
Profit before | 70.3 | 60.5 | 56.9 | 5.4 | 2.2 | 25.2 | 29.9 | 49.6
|
| taxes, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
% of revenue | 7.6, | 6.1 | 5.9 | 0.5 | 0.3 | 3.0 | 3.7 | 5.2
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Balance sheet | 2,52 | 2,60 | 2,86 | 2,973 | 2,839 | 2,837 | 2,845 | 2,626
|
| total, MEUR | 5.8 | 5.5 | 8.5 | .9 | .7 | .9 | .9 |
.4
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Earnings per | 0.40 | 0.33 | 0.29 | 0.03 | 0.02 | 0.12 | 0.15 | 0.26
|
| share, EUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity per | 5.97 | 6.32 | 6.61 | 6.38 | 5.70 | 5.90 | 6.09 | 6.38
|
| share, EUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Share price at | 17.9 | 15.9 | 7.30 | 4.58 | 5.05 | 7.40 | 13.01 | 14.45
|
| end of period, | 7 | 8 | | | | | |
|
| EUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Market | 2,28 | 2,03 | 928. | 576.2 | 631.6 | 925.6 | 1,627 | 1,807
|
| capitalization | 6.1 | 3.0 | 7 | | | | .3 |
.4 |
| at end of | | | | | | | |
|
| period, MEUR | | | | | | |
|
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Return on | 28.1 | 25.6 | 21.9 | 17.5 | 14.3 | 11.4 | 9.8 | 10.9
|
| investment, | | | | | | | |
|
| from the last | | | | | | | |
|
| 12 months, % | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Equity ratio, % | 33.3 | 34.5 | 33.4 | 30.7 | 28.3 | 29.3 | 29.7 | 33.8
|
-----------------------------------------------------------------------------
---
|
Net | 462. | 625. | 696. | 644.5 | 635.2 | 671.4 | 640.4 | 497.7
|
| interest-bearin | 7 | 2 | 9 | | | | |
|
| g debt at end | | | | | | | |
|
| of period, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Gearing ratio, | 60.6 | 77.2 | 82.5 | 79.8 | 88.5 | 90.6 | 83.8 | 62.2
|
| % | | | | | | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Gross capital | 11.8 | 14.0 | 51.1 | 8.3 | 6.7 | 3.9 | 5.1 | 12.0
|
| expenditures, | | | | | | | |
|
| MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Order backlog | 3,62 | 3,67 | 3,96 | 3,233 | 3,045 | 2,916 | 2,800 | 2,773
|
| at end of | 7.0 | 0.4 | 4.9 | .7 | .0 | .4 | .8 |
.6 |
| period, MEUR | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Personnel at | 23,6 | 24,9 | 26,6 | 25,78 | 25,23 | 24,76 | 24,00 | 23,48
|
| end of period | 44 | 78 | 88 | 4 | 9 | 3 | 3 |
0
|
-----------------------------------------------------------------------------
---
SEGMENT
INFORMATION BY QUARTER
Revenue by business segment (EUR million)
----------------------------------------------------------------------------
----
|
| I/2 | II/2 | III/ | IV/20 | I/200 | II/20 | III/2 | IV/20
|
| | 008 | 008 | 2008 | 08 | 9 | 09 | 009 |
09
|
-----------------------------------------------------------------------------
---
|
Building and | 507 | 589. | 586. | 713.0 | 537.9 | 529.2 | 483.9 | 573.9
|
| Industrial | .8 | 1 | 1 | | | | |
|
| Services 1) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Construction | 284 | 308. | 285. | 268.6 | 239.8 | 253.0 | 246.3 | 290.6
|
| Services Finland | .9 | 6 | 8 | | | | |
|
-----------------------------------------------------------------------------
---
|
International | 154 | 119. | 123. | 96.4 | 61.4 | 87.4 | 97.6 | 113.0
|
| Construction | .3 | 5 | 3 | | | | |
|
| Services | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other items | -20 | -26. | -24. | -27.3 | -15.5 | -16.4 | -12.8 | -17.0
|
| | .0 | 0 | 4 | | | | |
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 927 | 991. | 970. | 1 | 823.7 | 853.1 | 815.0 | 960.5
|
| | .0 | 2 | 8 | 050.7 | | | |
|
-----------------------------------------------------------------------------
---
1)
The building system operations acquired from Central Europe transferred to
YIT on August 1, 2008. The revenue of these operations for August-December
2008
amounted to EUR 182.6 million.
Operating profit by business segment (EUR million)
----------------------------------------------------------------------------
----
|
| I/2 | II/2 | III/ | IV/20 | I/200 | II/20 | III/2 | IV/20
|
| | 008 | 008 | 2008 | 08 | 9 | 09 | 009 |
09
|
-----------------------------------------------------------------------------
---
|
Building and | 31. | 41.0 | 43.5 | 46.0 | 28.6 | 28.2 | 24.9 | 37.6
|
| Industrial | 5 | | | | | | |
|
| Services 1) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Construction | 35. | 29.4 | 28.1 | 18.8 | 20.9 | 19.9 | 20.8 | 20.3
|
| Services Finland | 4 | | | | | | |
|
| 2) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
International | 16. | 6.1 | -4.0 | -9.2 | -23.8 | -5.2 | 3.7 | 7.5
|
| Construction | 1 | | | | | | |
|
| Services | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other items | -4. | -6.0 | -4.5 | -7.1 | -3.6 | -4.8 | -3.8 | -5.7
|
| | 4 | | | | | | |
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 78. | 70.5 | 63.1 | 48.5 | 22.1 | 38.1 | 45.6 | 59.7
|
| | 6 | | | | | | |
|
-----------------------------------------------------------------------------
---
Operating
profit margin by business segment (%)
----------------------------------------------------------------------------
----
|
| I/2 | II/2 | III/ | IV/20 | I/200 | II/20 | III/2 | IV/20
|
| | 008 | 008 | 2008 | 08 | 9 | 09 | 009 |
09
|
-----------------------------------------------------------------------------
---
|
Building and | 6.2 | 7.0% | 7.4% | 6.5% | 5.3% | 5.3% | 5.1% | 6.6%
|
| Industrial | % | | | | | | |
|
| Services 1) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Construction | 12. | 9.5% | 9.8% | 7.0% | 8.7% | 7.9% | 8.4% | 7.0%
|
| Services Finland | 4% | | | | | | |
|
| 2) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
International | 10. | 5.1% | -3.2 | -9.5% | -38.7 | -5.9% | 3.8% | 6.6%
|
| Construction | 4% | | % | | % | | |
|
| Services | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 8.5 | 7.1% | 6.5% | 4.6% | 2.7% | 4.5% | 5.6% | 6.2%
|
| | % | | | | | | |
|
-----------------------------------------------------------------------------
---
1a)
The building system operations acquired from Central Europe transferred to
YIT on August 1, 2008.
1b) On September 30, 2009, the court of arbitration issued its ruling in
the
dispute concerning the mechanical installation contract YIT carried
out for
Neste Oil's Porvoo oil refinery. The effect of the ruling on
Building and
Industrial Services' operating profit for Q3/2009 was EUR
-3.2 million.
2) The Supreme Court issued its ruling on disputes
connected with the renovation
of SOK's former head office building on March
10, 2008. The ruling had a
positive effect of EUR 3.5 million on the
Construction Services Finland
operating profit for Q1/2008.
Order backlog by business segment
at end of period (EUR million)
----------------------------------------------------------------------------
----
|
| I/20 | II/2 | III/ | IV/2 | I/200 | II/20 | III/2 | IV/20
|
| | 08 | 008 | 2008 | 008 | 9 | 09 | 009 |
09
|
-----------------------------------------------------------------------------
---
|
Building and | 1,04 | 1,02 | 1,28 | 1,05 | 1,048 | 984.7 | 946.7 | 850.4
|
| Industrial | 8.0 | 1.3 | 4.1 | 0.2 | .3 | | |
|
| Services 1) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Construction | 1,30 | 1,26 | 1,08 | 874. | 819.8 | 846.9 | 909.9 | 1,007
|
| Services Finland | 6.4 | 4.8 | 5.9 | 2 | | | |
.5
|
-----------------------------------------------------------------------------
---
|
International | 1,38 | 1,48 | 1,67 | 1,36 | 1,239 | 1,126 | 998.4 | 960.1
|
| Construction | 1.7 | 3.7 | 8.2 | 9.3 | .1 | .8 | |
|
| Services 2) | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other items | -109 | -99. | -83. | -60. | -62.1 | -42.0 | -54.2 | -44.4
|
| | .1 | 4 | 3 | 0 | | | |
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 3,62 | 3,67 | 3,96 | 3,23 | 3,045 | 2,916 | 2,800 | 2,773
|
| | 7.0 | 0.4 | 4.9 | 3.7 | .0 | .4 | .8 |
.6
|
-----------------------------------------------------------------------------
---
1)
The business operations acquired from Central Europe transferred to YIT on
August 1, 2008. The order backlog of these operations amounted to EUR 265.6
million at the end of 2008.
2) The order backlog includes residential projects suspended in Russia in
October 2008. At the end of 2009, the value of the projects that were
still
suspended amounted to EUR 282 million in the order backlog (12/08:
EUR 356
million).
2. CONSOLIDATED FINANCIAL STATEMENTS JAN 1 - DEC 31, 2009
CONSOLIDATED INCOME STATEMENT JAN 1 - DEC 31, 2009 (EUR
million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Revenue | 3,452.4 | 3,939.7 | -12%
|
-----------------------------------------------------------------------------
---
|
of which activities outside Finland | 1,885.7 | 2,072.9 | -9%
|
-----------------------------------------------------------------------------
---
|
Other operating income and expenses | -3,252.6 | -3,647.1 | -11%
|
-----------------------------------------------------------------------------
---
|
Share of results of associated | -0.6 | -0.1 | 500%
|
| companies | | |
|
-----------------------------------------------------------------------------
---
|
Depreciation and write-downs | -33.6 | -31.8 | 6%
|
-----------------------------------------------------------------------------
---
|
Operating profit 1) | 165.5 | 260.6 | -36%
|
-----------------------------------------------------------------------------
---
|
% of revenue | 4.8 | 6.6 | -27%
|
-----------------------------------------------------------------------------
---
|
Financial income 2) | 4.5 | 5.9 | -24%
|
-----------------------------------------------------------------------------
---
|
Exchange rate differences | -28.4 | -25.0 | 14%
|
-----------------------------------------------------------------------------
---
|
Financial expenses | -34.7 | -48.4 | -28%
|
-----------------------------------------------------------------------------
---
|
Profit before taxes | 106.9 | 193.1 | -45%
|
-----------------------------------------------------------------------------
---
|
% of revenue | 3.1 | 4.9 | -37%
|
-----------------------------------------------------------------------------
---
|
Income taxes 3) | -40.7 | -58.8 | -30%
|
-----------------------------------------------------------------------------
---
|
Profit for the report period | 66.2 | 134.3 | -51%
|
-----------------------------------------------------------------------------
---
|
% of revenue | 2.0 | 3.4 | -41%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Attributable to | | |
|
-----------------------------------------------------------------------------
---
|
Equity holders of the parent company | 66.8 | 132.9 | -50%
|
-----------------------------------------------------------------------------
---
|
Minority interests | -0.6 | 1.4 | -136%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Earnings per share attributable to | | |
|
| the equity holders of the parent | | |
|
| company | | |
|
-----------------------------------------------------------------------------
---
|
Earnings per share, EUR | 0.53 | 1.05 | -50%
|
-----------------------------------------------------------------------------
---
|
Diluted earnings per share, EUR | 0.53 | 1.05 | -50%
|
-----------------------------------------------------------------------------
---
1)
The operating profit 2009 includes EUR -3.2 million due to the ruling issued
by the court of arbitration on September 30, 2009 concerning the mechanical
installation contract YIT carried out for Neste Oil's Porvoo oil refinery.
The
operating profit 2008 includes EUR 3.5 million due to the ruling of the
Supreme
Court of disputes over the refurbishing of SOK's former head office
in Finland.
2) The financial income of the 2008 period includes EUR +2.2
million due to the
ruling of the Supreme Court of disputes over the
refurbishing of SOK's former
head office in Finland.
3) During 2009 the Group's tax rate was 38.1
per cent (2008: 30.4%). Increase in
tax rate was mainly due to negative
profits in several companies in Baltic
countries and Russia.
STATEMENT OF COMPREHENSIVE
INCOME JAN 1 - DEC 31, 2009 (EUR million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008
|
-----------------------------------------------------------------------------
---
|
Profit for the report period | 66.2 | 134.3
|
-----------------------------------------------------------------------------
---
|
Other comprehensive income and expenses | |
|
-----------------------------------------------------------------------------
---
|
- Change in the fair value of interest | -3.1 | -4.7
|
| derivatives | |
|
-----------------------------------------------------------------------------
---
|
-- Deferred tax | 0.0 | 1.2
|
-----------------------------------------------------------------------------
---
|
-- Transferred to income statement | 3.1 | 0.0
|
-----------------------------------------------------------------------------
---
|
- Change in translation differences | -5.9 | -35.8
|
-----------------------------------------------------------------------------
---
|
- Other change | -0.6 | -0.3
|
-----------------------------------------------------------------------------
---
|
Other comprehensive income, total | -6.4 | -39.6
|
-----------------------------------------------------------------------------
---
|
Total comprehensive income | 59.7 | 94.7
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Attributable to | |
|
-----------------------------------------------------------------------------
---
|
Equity holders of the parent company | 60.9 | 93.7
|
-----------------------------------------------------------------------------
---
|
Minority interests | -1.2 | 1.0
|
-----------------------------------------------------------------------------
---
CONSOLIDATED
INCOME STATEMENT OCT 1 - DEC 31, 2009 (EUR million)
----------------------------------------------------------------------------
----
|
| 10-12/2009 | 10-12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Revenue | 960.5 | 1 050.7 | -9%
|
-----------------------------------------------------------------------------
---
|
of which activities outside Finland | 543.0 | 586.8 | -7%
|
-----------------------------------------------------------------------------
---
|
Other operating income and expenses | -892.3 | -993.5 | -10%
|
-----------------------------------------------------------------------------
---
|
Depreciation and write-downs | -0.6 | -0.1 | 500%
|
-----------------------------------------------------------------------------
---
|
Operating profit | -8.4 | -8.7 | -3%
|
-----------------------------------------------------------------------------
---
|
% of revenue | 59.7 | 48.4 | 23%
|
-----------------------------------------------------------------------------
---
|
Financial income 1) | 6.2 | 4.6 | 35%
|
-----------------------------------------------------------------------------
---
|
Exchange rate differences | 1.9 | 1.2 | 58%
|
-----------------------------------------------------------------------------
---
|
Financial expenses | -5.9 | -27.6 | -79%
|
-----------------------------------------------------------------------------
---
|
Profit before taxes | -6.2 | -16.7 | -63%
|
-----------------------------------------------------------------------------
---
|
% of revenue | 49.5 | 5.3 | 834%
|
-----------------------------------------------------------------------------
---
|
Income taxes 2) | 5.2 | 0.5 | 931%
|
-----------------------------------------------------------------------------
---
|
Profit for the report period | -19.2 | -2.6 | 654%
|
-----------------------------------------------------------------------------
---
|
% of revenue | 30.2 | 2.8 | 1007%
|
-----------------------------------------------------------------------------
---
|
| 3.2 | 0.3 | 1223%
|
-----------------------------------------------------------------------------
---
|
Attributable to | | |
|
-----------------------------------------------------------------------------
---
|
Equity holders of the parent company | | |
|
-----------------------------------------------------------------------------
---
|
Minority interests | 30.3 | 2.7 | 1004%
|
-----------------------------------------------------------------------------
---
|
| -0.1 | 0.1 | -200%
|
-----------------------------------------------------------------------------
---
|
Earnings per share attributable to | | |
|
| the equity holders of the parent | | |
|
| company | | |
|
-----------------------------------------------------------------------------
---
|
Earnings per share, EUR | 0.24 | 0.03 | 700%
|
-----------------------------------------------------------------------------
---
|
Diluted earnings per share, EUR | 0.24 | 0.03 | 700%
|
-----------------------------------------------------------------------------
---
CONSOLIDATED
BALANCE SHEET (EUR million)
----------------------------------------------------------------------------
----
|
| 12/2009 | 12/2008 | change
|
-----------------------------------------------------------------------------
---
|
ASSETS | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Non-current assets | | |
|
-----------------------------------------------------------------------------
---
|
Property, plant and equipment | 99.8 | 104.6 | -5%
|
-----------------------------------------------------------------------------
---
|
Goodwill | 291.0 | 291.0 | 0%
|
-----------------------------------------------------------------------------
---
|
Other intangible assets | 32.8 | 35.1 | -7%
|
-----------------------------------------------------------------------------
---
|
Shares in associated companies | 3.2 | 3.8 | -16%
|
-----------------------------------------------------------------------------
---
|
Investments | 2.0 | 2.5 | -20%
|
-----------------------------------------------------------------------------
---
|
Receivables | 14.4 | 12.7 | 13%
|
-----------------------------------------------------------------------------
---
|
Deferred tax assets | 39.8 | 34.6 | 14%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current assets | | |
|
-----------------------------------------------------------------------------
---
|
Inventories | 1,309.5 | 1,509.9 | -13%
|
-----------------------------------------------------------------------------
---
|
Trade and other receivables | 660.8 | 778.0 | -15%
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents | 173.1 | 201.7 | -14%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total assets | 2,626.4 | 2,973.9 | -12%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
EQUITY AND LIABILITIES | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Equity attributable to equity holders | | |
|
| of the parent company | | |
|
-----------------------------------------------------------------------------
---
|
Share capital | 149.2 | 149.2 | -
|
-----------------------------------------------------------------------------
---
|
Other equity | 648.8 | 653.9 | -1%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Minority interests | 2.6 | 4.6 | -43%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total equity | 800.6 | 807.7 | -1%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Non-current liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Deferred tax liabilities | 73.6 | 68.4 | 8%
|
-----------------------------------------------------------------------------
---
|
Pension liabilities | 17.6 | 19.7 | -11%
|
-----------------------------------------------------------------------------
---
|
Provisions | 49.0 | 45.0 | 9%
|
-----------------------------------------------------------------------------
---
|
Interest-bearing liabilities | 502.0 | 516.2 | -3%
|
-----------------------------------------------------------------------------
---
|
Other liabilities | 3.3 | 4.0 | -18%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Current liabilities | | |
|
-----------------------------------------------------------------------------
---
|
Trade and other payables | 971.5 | 1 140.8 | -15%
|
-----------------------------------------------------------------------------
---
|
Provisions | 40.0 | 42.0 | -5%
|
-----------------------------------------------------------------------------
---
|
Interest-bearing current liabilities | 168.8 | 330.1 | -49%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Total equity and liabilities | 2,626.4 | 2,973.9 | -12%
|
-----------------------------------------------------------------------------
---
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY (EUR million)
----------------------------------------------------------------------------
----
|
| Shar | Lega | Othe | Cumul | Fair | Trea | Retain | Minor | Total
|
| | e | l | r | ative | valu | sury | ed | ity |
equit |
| | capi | rese | rese | trans | e | shar | earnin | inter
| y |
| | tal | rve | rve | latio | rese | es | gs | est
| |
| | | | | n | rve | | |
| |
| | | | | diffe | | | |
| |
| | | | | rence | | |
| | |
| | | | | s | | |
| |
|
-----------------------------------------------------------------------------
---
|
Equity | 149. | 1.4 | 13.9 | -35.2 | -1.7 | -6.6 | 682.1 | 4.6 | 807.7
|
| on Jan | 2 | | | | | | | |
|
| 1, 2009 | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividend | - | - | - | - | - | | -62.5 | -0.8 | -63.3
|
| paid, | | | | | | | | |
|
| EUR | | | | | | | | |
|
| 0.50/sha | | | | | | | | |
|
| re | | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Purchase | - | - | - | - | - | -4.0 | - | - | -4.0
|
| of | | | | | | | | |
|
| treasury | | | | | | | | |
|
| shares | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Shares | - | - | - | - | - | - | - | - |
|
| subscrib | | | | | | | | |
|
| ed with | | | | | | | | |
|
| options | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Employee | - | - | -2.3 | - | - | - | 2.8 | - | 0.5
|
| share | | | | | | | | |
|
| option | | | | | | | | |
|
| scheme | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Transfer | - | 0.3 | - | - | - | - | -0.3 | - | 0.0
|
| from | | | | | | | | |
|
| retained | | | | | | | | |
|
| earnings | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other | - | - | - | -7.3 | 0.0 | - | 68.2 | -1.2 | 59.7
|
| comprehe | | | | | | | | |
|
| nsive | | | | | | | | |
|
| income, | | | | | | | | |
|
| total | | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Equity | 149. | 1.7 | 11.6 | -42.5 | -1.7 | -10. | 690.3 | 2.6 | 800.6
|
| on Dec | 2 | | | | | 6 | | |
|
| 31, 2009 | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
| Shar | Lega | Othe | Cumul | Fair | Trea | Retain | Minor | Total
|
| | e | l | r | ative | valu | sury | ed | ity |
equit |
| | capi | rese | rese | trans | e | shar | earnin | inter
| y |
| | tal | rve | rve | latio | rese | es | gs | est
| |
| | | | | n | rve | | |
| |
| | | | | diffe | | | |
| |
| | | | | rence | | |
| | |
| | | | | s | | |
| |
|
-----------------------------------------------------------------------------
---
|
Equity | 149. | 1.0 | 13.9 | -9.0 | 2.0 | 0.0 | 657.6 | 3.8 | 818.4
|
| on Jan | 1 | | | | | | | |
|
| 1, 2008 | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Dividend | - | - | - | - | - | - | -101.8 | -0.2 | -102.
|
| paid, | | | | | | | | |
0 |
| EUR | | | | | | | | |
|
| 0.80/sha | | | | | | | | |
|
| re | | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Purchase | - | - | - | - | - | -6.6 | - | - | -6.6
|
| of | | | | | | | | |
|
| treasury | | | | | | | | |
|
| shares | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Shares | 0.1 | - | - | - | - | - | - | - | 0.1
|
| subscrib | | | | | | | | |
|
| ed with | | | | | | | | |
|
| options | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Employee | - | - | - | - | - | - | 3.2 | - | 3.2
|
| share | | | | | | | | |
|
| option | | | | | | | | |
|
| scheme | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Transfer | - | 0.4 | - | - | - | - | -0.4 | - | 0.0
|
| from | | | | | | | | |
|
| retained | | | | | | | | |
|
| earnings | | | | | | | | |
|
-----------------------------------------------------------------------------
---
|
Other | - | - | 0.0 | -26.2 | -3.7 | - | 123.5 | 1.0 | 94.6
|
| comprehe | | | | | | | | |
|
| nsive | | | | | | | | |
|
| income, | | | | | | | | |
|
| total | | | | | | | |
|
|
-----------------------------------------------------------------------------
---
|
Equity | 149. | 1.4 | 13.9 | -35.2 | -1.7 | -6.6 | 682.1 | 4.6 | 807.7
|
| on Dec | 2 | | | | | | | |
|
| 31, 2008 | | | | | | | | |
|
-----------------------------------------------------------------------------
---
CONSOLIDATED
CASH FLOW STATEMENT (EUR million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Cash flows from operating activities | | |
|
-----------------------------------------------------------------------------
---
|
Net profit for the period | 65.9 | 134.3 | -51%
|
-----------------------------------------------------------------------------
---
|
Reversal of accrual-based items | 165.2 | 197.1 | -16%
|
-----------------------------------------------------------------------------
---
|
Change in working capital | | |
|
-----------------------------------------------------------------------------
---
|
Change in trade and other receivables | 124.3 | 4.5 | 2662%
|
-----------------------------------------------------------------------------
---
|
Change in inventories | 148.7 | -318.2 | -147%
|
-----------------------------------------------------------------------------
---
|
Change in current liabilities | -170.3 | 132.4 | -229%
|
-----------------------------------------------------------------------------
---
|
Change in working capital, total | 102.7 | -181.3 | -157%
|
-----------------------------------------------------------------------------
---
|
Interest paid | -35.3 | -45.5 | -22%
|
-----------------------------------------------------------------------------
---
|
Realised exchange rate gain or losses | -22.0 | 2.7 | -915%
|
-----------------------------------------------------------------------------
---
|
Interest received | 4.7 | 5.8 | -18%
|
-----------------------------------------------------------------------------
---
|
Taxes paid | -38.7 | -65.3 | -41%
|
-----------------------------------------------------------------------------
---
|
Net cash generated from operating | 242.5 | 47.8 | 407%
|
| activities | | |
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flows from investing activities | | |
|
-----------------------------------------------------------------------------
---
|
Acquisition of subsidiaries, net of | -7.5 | -38.9 | -81%
|
| cash | | |
|
-----------------------------------------------------------------------------
---
|
Acquisition of shares in associated | 0.0 | -0.2 | -100%
|
| companies | | |
|
-----------------------------------------------------------------------------
---
|
Purchase of property, plant and | -20.8 | -33.5 | -38%
|
| equipment | | |
|
-----------------------------------------------------------------------------
---
|
Purchase of intangible assets | -7.2 | -4.1 | 76%
|
-----------------------------------------------------------------------------
---
|
Disposals of subsidiaries and | 0.0 | 4.2 | -100%
|
| businesses | | |
|
-----------------------------------------------------------------------------
---
|
Proceeds from sale of tangible and | 4.1 | 4.7 | -13%
|
| intangible assets | | |
|
-----------------------------------------------------------------------------
---
|
Proceeds from sale of other | 0.3 | 0.6 | -50%
|
| investments | | |
|
-----------------------------------------------------------------------------
---
|
Net cash used in investing activities | -31.1 | -67.2 | -54%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Operating cash flow after investments | 211.4 | -19.4 | -
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Cash flow from financing activities | | |
|
-----------------------------------------------------------------------------
---
|
Proceeds from share issues | 0.0 | 0.1 | -100%
|
-----------------------------------------------------------------------------
---
|
Change in current liabilities | -120.2 | 103.3 | -216%
|
-----------------------------------------------------------------------------
---
|
Proceeds from borrowings | 60.0 | 265.0 | -77%
|
-----------------------------------------------------------------------------
---
|
Repayments of borrowings | -110.6 | -97.5 | 13%
|
-----------------------------------------------------------------------------
---
|
Payments of financial leasing debts | -0.3 | -0.5 | -40%
|
-----------------------------------------------------------------------------
---
|
Purchase of treasury shares | -4.0 | -6.6 | -39%
|
-----------------------------------------------------------------------------
---
|
Dividends paid | -63.4 | -102.0 | -38%
|
-----------------------------------------------------------------------------
---
|
Net cash used in financing activities | -238.5 | 161.8 | -247%
|
-----------------------------------------------------------------------------
---
---------------------------------------------------------------------------
-----
|
Net change in cash and cash | -27.1 | 142.4 | -119%
|
| equivalents | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents at the | 197.7 | 59.2 | 234%
|
| beginning of the period | | |
|
-----------------------------------------------------------------------------
---
|
Change in the fair value of the cash | 2.5 | -3.9 | -164%
|
| equivalents | | |
|
-----------------------------------------------------------------------------
---
|
Cash and cash equivalents at the end | 173.1 | 197.7 | -12%
|
| of the period | | |
|
-----------------------------------------------------------------------------
---
3.
NOTES
ACCOUNTING PRINCIPLES OF THE FINANCIAL STATEMENTS BULLETIN
YIT Corporation's financial statements for January 1 - December 31,
2009 have
been drafted in line with the IAS 34 Interim Financial Reporting
standard. The
consolidated financial statements have been drafted in
compliance with the
International Financial Reporting Standards, and the
IAS/IFRS standards approved
by the EU Commission by December 31, 2009 and SIC
and IFRIC interpretations have
been complied with in the drafting of the
statements. Standard amendments or new
interpretations that took effect in
2009 have not had a significant effect on
the Group's financial statements
for 2009. The financial statements bulletin is
based on the audited financial
statements for 2009.
Impact of new standards or
interpretations
The following revised
standards that have come into force in 2009 had an impact
on YIT Group's
financial reporting:
IFRS 8
Operating Segments: According to standard, the segment figures presented
must
be based on the internal reports regularly reviewed by the entity's
management. Adopting this standard 2009 has not changed significantly Group's
segment reporting, as already previously published segment information was
based
on internal reporting structure.
IAS 23 (revised) Borrowing cost: Standard provides, that borrowing
costs
directly attributable to certain qualified assets, e.g.
construction project,
shall be capitalised as part of the cost of that
asset. Previously all borrowing
costs could be recognised as an expense
immediately. Borrowing costs
attributable to construction projects
that begin on January 1, 2009 or later
will be capitalised in the balance
sheet and are recognised to Profit and loss
account when project revenue is
recognised.
IAS 1 (revised) Presentation
of financial statements: The change in accounting
policy only impacts
presentation of profit and loss account and the statement of
changes in equity
as well as some terms in the financial statements. Non-owner
changes in
equity are presented in a comprehensive income statement. In 2009
Group
has disclosed two separate calculations Income statement and
Comprehensive
income statement. Also comparative information has been
re-presented.
Evaluation of the future impact of new
interpretations
IFRIC 15 Agreements for the
Construction of Real Estate: The interpretation
provides guidance on when
to account for revenue from the construction of real
estate based on
delivery according to the IAS 18 standard and when the
percentage of
completion method can be used in accordance with the IAS 11
standard.
The entry into force of the interpretation will change YIT Group's
revenue
recognition in Construction Services Finland and International
Construction Services segments from housing developer contracting to take
place
mainly at the time of delivery, while so far revenue and operating
profit have
been recognized based on the percentage of completion and
percentage of sale.
Application of the percentage of completion method
according to IAS 11 may
possibly continue contract specific in
construction of business premises. The
application will mainly have an
impact on the reporting of revenue, operating
profit, profit for the
period, inventories, trade receivables, advances
received,
interest-bearing liabilities, deferred taxes, shareholders' equity and
balance
sheet total. The amendment will also have an impact on the key figures.
The
interpretation shall be applied to the financial period starting on January
1, 2010. YIT Group has analyzed the impact of the implementation of IFRIC 15
for
Group's key figures, using preliminary comparative figures for the year
2009.
The adjusted revenue for the year 2009 is about EUR 3,486 million
(effect EUR
+33 million, +1.0%), adjusted profit before taxes EUR 110
million (effect EUR +3
million, +2.5%), adjusted retained earnings about EUR
654 million (effect EUR
-37 million, -5.3% ), adjusted equity ratio 32.4%
(effect -1.4 %-units),
adjusted return on investment 10.8% (effect
-0.1 %-units), adjusted operating
cash flow after investments about EUR 230
million (effect EUR +18 million,
corresponding negative effect in cash
flow from financing activities and no
effect on total net change in
cash), adjusted dividend payout ratio according to
Board of Directors proposal
73.2% (effect -1.7 %-units). The effect of the
IFRIC15 adoption will
fluctuate significantly in reporting periods depending on
the amount of
completions of different construction projects during that period.
The
adoption of IFRIC15 will not change the management's segment reporting or
the accounting principles in there.
Other applied or future standards, amendments or interpretations have
minor
effects on YIT Group's reporting.
The effects are fully described in the financial statements 2009.
Currency exchange rates used in the Financial Statements
----------------------------------------------------------------------------
----
|
| | Average | Balance | | Average | Balance sheet
|
| | | rate | sheet rate | | rate |
rate |
| | | 1-12/2009 | December | | 1-12/2008 |
December 31, |
| | | | 31, 2009 | | |
2008
|
-----------------------------------------------------------------------------
---
|
1 EUR | SEK | 10.6189 | 10.2520 | | 9.6101 | 10.8700
|
| = | | | | | |
|
-----------------------------------------------------------------------------
---
|
| NOK | 8.7287 | 8.3000 | | 8.2181 | 9.7500
|
-----------------------------------------------------------------------------
---
|
| DKK | 7.4463 | 7.4418 | | 7.4560 | 7.4506
|
-----------------------------------------------------------------------------
---
|
| EEK | 15.6466 | 15.6466 | | 15.6466 | 15.6466
|
-----------------------------------------------------------------------------
---
|
| LVL | 0.7028 | 0.7028 | | 0.7028 | 0.7028
|
-----------------------------------------------------------------------------
---
|
| LTL | 3.4528 | 3.4528 | | 3.4528 | 3.4528
|
-----------------------------------------------------------------------------
---
|
| RUB | 44.1306 | 43.1540 | | 36.3922 | 41.2830
|
-----------------------------------------------------------------------------
---
|
| HUF | 280.39 | 270.42 | | 253.20 | 266.70
|
-----------------------------------------------------------------------------
---
|
| CZK | 26.436 | 26.473 | | 24.833 | 26.875
|
-----------------------------------------------------------------------------
---
|
| PLN | 4.3270 | 4.1045 | | 3.5883 | 4.1535
|
-----------------------------------------------------------------------------
---
FINANCIAL
RISK MANAGEMENT
Financial risks include liquidity, interest rate, currency and credit risk,
and
their management is a part of the Group's financing policy. The Board of
Directors has approved the Corporate Finance Policy. The Group's
Finance
Department is responsible for the practical implementation of
the policy in
association with the business segments and groups.
The Group's strategic financial targets guide the use
and management of the
Group's capital. Achieving the strategic targets is
supported by maintaining an
optimum Group capital structure. Capital
structure is mainly influenced by
controlling the investments and the
amount of working capital tied to business
operations.
A more detailed account of
financial risks will be published in the notes to the
financial statements for
2009.
SEGMENT INFORMATION
As of the
beginning of 2009, the operations of YIT Group have been divided into
three
business segments: Building and Industrial Services, Construction
Services
Finland and International Construction Services. The segment
structure was
adjusted at the beginning of the year by merging the
Building Systems and
Industrial Services segments into a single
segment, Building and Industrial
Services.
The figures for 2008 are comparison
figures calculated as the business segment
structure changed on January 1,
2009. YIT published the comparison figures for
2008 according to the new
segment structure in a stock exchange release on March
23, 2009.
The chief operating
decision-maker has been identified as the YIT Group's
Management Board,
which review the Group's internal reporting in order to assess
performance and
allocate resources to the segments.
Revenue by
business segment (EUR million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Building and Industrial Services 1) | 2,124.9 | 2,396.0 | -11%
|
-----------------------------------------------------------------------------
---
|
- Group internal | -58.6 | -90.2 | -35%
|
-----------------------------------------------------------------------------
---
|
- external | 2,066.3 | 2,305.8 | -10%
|
-----------------------------------------------------------------------------
---
|
Construction Services Finland | 1,029.7 | 1,147.9 | -10%
|
-----------------------------------------------------------------------------
---
|
- Group internal | -1.8 | -3.7 | -51%
|
-----------------------------------------------------------------------------
---
|
- external | 1,028.0 | 1,144.2 | -10%
|
-----------------------------------------------------------------------------
---
|
International Construction Services | 359.4 | 493.5 | -27%
|
-----------------------------------------------------------------------------
---
|
- Group internal | -3.1 | -6.4 | -52%
|
-----------------------------------------------------------------------------
---
|
- external | 356.3 | 487.1 | -27%
|
-----------------------------------------------------------------------------
---
|
Other items | 1.8 | 2.6 | -37%
|
-----------------------------------------------------------------------------
---
|
YIT Group -external | 3,452.4 | 3,939.7 | -12%
|
-----------------------------------------------------------------------------
---
1)
The building system operations acquired from Central Europe transferred to
YIT on August 1, 2008. The revenue of these operations for August-December
2008
amounted to EUR 182.6 million.
Operating profit by business segment (EUR million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Building and Industrial Services 1) | 119.3 | 162.0 | -26%
|
-----------------------------------------------------------------------------
---
|
Construction Services Finland 2) | 81.9 | 111.7 | -27%
|
-----------------------------------------------------------------------------
---
|
International Construction Services | -17.8 | 9.0 | -298%
|
-----------------------------------------------------------------------------
---
|
Other items | -17.9 | -22.0 | -19%
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 165.5 | 260.6 | -36%
|
-----------------------------------------------------------------------------
---
1a)
The building system operations acquired from Central Europe transferred to
YIT on August 1, 2008.
1b) On September 30, 2009, the court of arbitration
issued its ruling in the dispute concerning the mechanical installation
contract
YIT carried out for Neste Oil's Porvoo oil refinery. The effect of
the ruling on
Building and Industrial Services' operating profit for 2009 was
EUR -3.2
million.
2) The Supreme Court issued its ruling on disputes
connected with the renovation
of SOK's former head office building on March
10, 2008. The ruling had a
positive effect of EUR 3.5 million on the
Construction Services Finland
operating profit for 2008.
Order backlog by business segment
at end of period (EUR million)
----------------------------------------------------------------------------
----
|
| 12/2009 | 12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Building and Industrial Services 1) | 850.4 | 1,050.2 | -19%
|
-----------------------------------------------------------------------------
---
|
Construction Services Finland | 1,007.5 | 874.2 | 15%
|
-----------------------------------------------------------------------------
---
|
International Construction Services | 960.1 | 1,369.3 | -30%
|
| 2) | | |
|
-----------------------------------------------------------------------------
---
|
Other items | -44.4 | -60.0 | -26%
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | 2,773.6 | 3,233.7 | -14%
|
-----------------------------------------------------------------------------
---
1)
The business operations acquired from Central Europe transferred to YIT on
August 1, 2008. The order backlog of these operations amounted to EUR 265.6
million at the end of 2008.
2) The order backlog includes projects suspended in October 2008. At the
end of
2009, the value of the projects that were still suspended amounted to
EUR 282
million in the order backlog (12/08: EUR 356 million).
UNUSUAL ITEMS AFFECTING OPERATING PROFIT (EUR million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008
|
-----------------------------------------------------------------------------
---
|
Building and Industrial Services 1) | -3.2 | -
|
-----------------------------------------------------------------------------
---
|
Construction Services Finland 2) | - | 3.5
|
-----------------------------------------------------------------------------
---
|
YIT Group, total | -3.2 | 3.5
|
-----------------------------------------------------------------------------
---
1)
On September 30, 2009, the court of arbitration issued its ruling in the
dispute concerning the mechanical installation contract YIT carried out for
Neste Oil's Porvoo oil refinery. The effect of the ruling on Building and
Industrial Services' operating profit for 2009 was EUR -3.2 million.
2) The Supreme Court issued its ruling on disputes connected with the
renovation
of SOK's former head office building on March 10, 2008. The ruling
had a
positive effect of EUR 3.5 million on the Construction Services
Finland
operating profit for 2008.
ACQUIRED AND DIVESTED BUSINESSES (EUR million)
During the review period there were no acquisitions
or major divestments.
The cash flow effect of the business acquired
in 2008 was EUR 7.5 million for
the review period. In 2008, YIT acquired
building systems operations in Germany,
Austria, Poland, the Czech Republic,
Hungary and Romania and they were
transferred to YIT on August 1,
2008.
CHANGES IN PROPERTY, PLANT
AND EQUIPMENT (EUR million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Carrying value at the beginning of | 104.6 | 92.5 | 13%
|
| period | | |
|
-----------------------------------------------------------------------------
---
|
Increase | 21.5 | 33.2 | -35%
|
-----------------------------------------------------------------------------
---
|
Increase through acquisitions | 0.0 | 6.2 | -100%
|
-----------------------------------------------------------------------------
---
|
Decrease | -3.4 | -3.4 | -
|
-----------------------------------------------------------------------------
---
|
Depreciation and value adjustments | -22.9 | -24.6 | -7%
|
-----------------------------------------------------------------------------
---
|
Reclassification | 0.0 | 0.7 | -100%
|
-----------------------------------------------------------------------------
---
|
Carrying value at the end of period | 99.8 | 104.6 | -5%
|
-----------------------------------------------------------------------------
---
INVENTORIES
(EUR million)
----------------------------------------------------------------------------
----
|
| 12/2009 | 12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Raw materials and consumables | 18.8 | 20.1 | -6%
|
-----------------------------------------------------------------------------
---
|
Work in progress | 441.9 | 690.5 | -36%
|
-----------------------------------------------------------------------------
---
|
Land areas and plot owing companies | 572.1 | 579.3 | -1%
|
-----------------------------------------------------------------------------
---
|
Shares in completed housing and real | 224.8 | 135.9 | 65%
|
| estate companies | | |
|
-----------------------------------------------------------------------------
---
|
Advance payments | 51.5 | 83.7 | -38%
|
-----------------------------------------------------------------------------
---
|
Other inventories | 0.4 | 0.4 | 0%
|
-----------------------------------------------------------------------------
---
|
Total inventories | 1,309.5 | 1,509.9 | -13%
|
-----------------------------------------------------------------------------
---
NOTES
ON EQUITY (EUR million)
----------------------------------------------------------------------------
----
|
Share capital and share premium | Number of | Share | Treasury | Total
|
| reserve | shares, | capita | shares |
|
| | 1000 | l | |
|
-----------------------------------------------------------------------------
---
|
Jan 1, 2009 | 125,798,4 | 149.2 | 125,798,4 | -6.6
|
| | 22 | | 22 |
|
-----------------------------------------------------------------------------
---
|
Purchase of own shares | -720,000 | | -720,000 | -4.0
|
-----------------------------------------------------------------------------
---
|
Dec 31, 2009 | 125,078,4 | 149.2 | 125,078,4 | -10.6
|
| | 22 | | 22 |
|
-----------------------------------------------------------------------------
---
INTEREST-BEARING
LIABILITIES (EUR million)
No new
long-term bonds were issued during the review period.
CHANGE IN CONTINGENT LIABILITIES AND ASSETS AND COMMITMENTS (EUR million)
----------------------------------------------------------------------------
----
|
| 12/2009 | 12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Collateral given for own commitments | | |
|
-----------------------------------------------------------------------------
---
|
- Corporate mortgages | 29.3 | 29.3 | 0%
|
-----------------------------------------------------------------------------
---
|
- Other mortgages | 45.2 | - |
|
-----------------------------------------------------------------------------
---
|
Other commitments | | |
|
-----------------------------------------------------------------------------
---
|
- Repurchase commitments | 106.4 | 139.1 | -24%
|
-----------------------------------------------------------------------------
---
|
- Operating leases | 321.9 | 352.2 | -9%
|
-----------------------------------------------------------------------------
---
|
- Rental guarantees for clients | 9.2 | 11.0 | -16%
|
-----------------------------------------------------------------------------
---
|
- Other contingent liabilities | 0.4 | 0.6 | -33%
|
-----------------------------------------------------------------------------
---
|
Liability under derivative contracts | | |
|
-----------------------------------------------------------------------------
---
|
- Value of underlying instruments | | |
|
-----------------------------------------------------------------------------
---
|
-- Interest rate derivatives | 362.3 | 239.2 | 51%
|
-----------------------------------------------------------------------------
---
|
-- Foreign currency forward contracts | 83.5 | 213.7 | -61%
|
-----------------------------------------------------------------------------
---
|
- Market value | | |
|
-----------------------------------------------------------------------------
---
|
-- Interest rate forward contracts | -5.9 | -5.3 | 11%
|
-----------------------------------------------------------------------------
---
|
- Foreign currency forward contracts | -9.4 | 26.8 | -135%
|
-----------------------------------------------------------------------------
---
TRANSACTIONS
WITH ASSOCIATED COMPANIES (EUR million)
----------------------------------------------------------------------------
----
|
| 1-12/2009 | 1-12/2008 | change
|
-----------------------------------------------------------------------------
---
|
Sales to associated companies | 1.3 | 3.6 | -64%
|
-----------------------------------------------------------------------------
---
|
Purchases from associated companies | 0.2 | 14.4 | -99%
|
-----------------------------------------------------------------------------
---
|
Trade and other receivables | 0.1 | 0.1 | -
|
-----------------------------------------------------------------------------
---
|
Trade and other liabilities | 0.1 | 0.5 | -80%
|
-----------------------------------------------------------------------------
---
|