English Finnish
Published: 2010-03-23 07:00:00 CET
YIT
Company Announcement
YIT'S COMPARISON FIGURES FOR 2009 IN ACCORDANCE WITH THE NEW IFRS INTERPRETATION
YIT CORPORATION    STOCK EXCHANGE RELEASE    MARCH 23, 2010 at 8 a.m.          



YIT'S COMPARISON FIGURES FOR 2009 IN ACCORDANCE WITH THE NEW IFRS
INTERPRETATION

YIT will apply the IFRIC 15 Agreements for the Construction
of Real Estate IFRS 
interpretation from the start of the financial period
beginning on January 1,   
2010. The adoption of the new interpretation will
have an impact on certain     
items of the consolidated income statement,
balance sheet and cash flow         
statement and the key figures based on
them. The adoption of the interpretation 
will not have any impact on the
figures covering YIT's segments published by the
Group as the information will
continue to be calculated in accordance with      
existing accounting
principles.                                                 

The IFRIC 15
interpretation contains guidelines on when the revenue generated by
the
construction of real estate must be recognised on the basis of the handover

of the building and when the percentage of completion method can be applied.
In 
YIT, the new interpretation will have an impact on the recognition of     
     
development projects involving residential and commercial real estate.
The      
interpretation will not have any impact on construction contracting
or building 
and industrial services.                                         
              

Under the new practice, the quarterly revenue and profits of
the YIT Group will 
now fluctuate more in accordance with the completion dates
of building projects.
The consolidated balance sheet total will be higher,
while at the same time the 
key figures calculated from the balance sheet will
weaken. The new revenue      
recognition practice also means that it will
take more time for the Group's     
financial figures to reflect changes in
production volumes.                     

MAIN CHANGES                       
                                            

Project revenue recognition    
                                                

In the future, the revenue
generated by YIT's own residential development       
projects will be
recognised in Group-level reports when the project is complete 
i.e. when the
residential units are ready to be handed over to the client. The  
share of
income and expenses to be recognized will be calculated also in the    
future
by multiplying the percentage of completion by the percentage of sale.  

Under the old practice, the revenue recognition began when the building work 
  
started using the percentage of completion method.                         
    
                                                                         
      
In YIT's own commercial real estate development projects, the
recognition       
practice will be evaluated on a case-by-case basis and in
accordance with the   
terms and conditions of each contract. In the future,
the projects already sold 
will be recognised when the construction work has
started or when the project is
complete. The share of income and expenses to
be recognized will be calculated  
also in the future by using the formula
percentage of completion multiplied by  
the percentage of sale multiplied by
the occupancy rate. Under the old practice,
the recognition of sold projects
was possible to start always immediately when  
the building work started. YIT
usually sells its commercial real estate         
development projects to
investors before the start of construction or during the
early stages of the
construction work, which together with other facts means    
that in most
cases the revenue of these projects can be recognised in accordance
with the
old practice also in the future.                                      


Consolidated income statement and order backlog                            
    

In the consolidated income statement, the new interpretation will
affect the    
revenue, operating profit and profit before taxes. There will
be no changes in  
the reporting of financial expenses. There will be no
material changes in the   
tax rate but the change in the timing of revenue
recognition will affect the    
deferred taxes. By changing the revenue
recognition practices, the new          
interpretation will also have an
impact on the Group's order backlog which      
covers the portion of the
customer orders and ongoing own development projects  
that has not been
recognised as revenue.                                       
     

----------------------------------------------------------------------------
     ----
|
EUR million                     | 1-3/2009 | 1-6/2009 | 1-9/2009 | 1-12/2009
     |
-----------------------------------------------------------------------------
     ---
|
Revenue                         |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |    823.7 |  1,676.8 |  2,491.8 |   3,452.4
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |    +19.5 |    +29.2 |    -31.5 |     +33.2
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |    843.2 |  1,706.0 |  2,460.3 |   3,485.6
     |
-----------------------------------------------------------------------------
     ---
|
Operating profit                |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     22.1 |     60.2 |    105.8 |     165.5
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |     +6.6 |    +11.8 |     -1.0 |      +2.6
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     28.7 |     72.0 |    104.8 |     168.1
     |
-----------------------------------------------------------------------------
     ---
|
Profit before taxes             |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |      2.2 |     27.4 |     57.4 |     106.9
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |     +6.6 |    +11.8 |     -1.0 |      +2.6
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |      8.8 |     39.2 |     56.4 |     109.5
     |
-----------------------------------------------------------------------------
     ---
|
Order backlog                   |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |  3,045.0 |  2,916.4 |  2,800.8 |   2,773.6
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |   +211.3 |   +203.6 |   +258.8 |    +209.7
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |  3,256.3 |  3,120.0 |  3,059.6 |   2,983.3
     |
-----------------------------------------------------------------------------
     ---

Consolidated
balance sheet                                                      

The most
important reporting change concerning the consolidated balance sheet is
that
YIT's production to which the new rule applies will be reported as part of

current assets and the payments received from the customers in advances
received
until the completion of the project - i.e. until the moment it will
begin to be 
recognised as revenue. As a result, there will be an increase in
current assets,
advances received and the balance sheet total.                
                 

In Finland, YIT finances its projects by selling
construction-stage contract    
receivables to financing companies. According
to the new interpretation, sold   
residential units from own development
projects will be recognised as revenue   
when the project is complete. As a
result, all construction-stage contract      
receivables related to
residential production and sold to financing companies   
must be reported as
part of the interest-bearing liabilities on the balance     
sheet. Under the
old practice, part of construction-stage contract receivables  
related to
residential production was reported as off-balance sheet items.     
     

----------------------------------------------------------------------------
     ----
|
EUR million                     |   3/2009 |   6/2009 |   9/2009 |   12/2009
     |
-----------------------------------------------------------------------------
     ---
|
Current assets                  |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |  1,426.8 |  1,418.9 |  1,357.7 |   1,309.5
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |   +186.1 |   +182.9 |   +230.8 |    +168.1
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |  1,612.9 |  1,601.8 |  1,588.5 |   1,477.6
     |
-----------------------------------------------------------------------------
     ---
|
Current receivables             |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |    718.6 |    751.5 |    764.0 |     660.7
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |    -33.6 |    -33.7 |    -43.9 |     -20.6
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |    685.0 |    717.8 |    720.1 |     640.1
     |
-----------------------------------------------------------------------------
     ---
|
Financial liabilities           |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |    843.7 |    859.8 |    886.2 |     670.8
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |    +38.9 |    +28.3 |    +34.0 |     +31.4
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |    882.6 |    888.1 |    920.2 |     702.2
     |
-----------------------------------------------------------------------------
     ---
|
Other current liabilities       |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |  1,094.2 |  1,055.9 |  1,009.3 |     971.5
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |   +149.2 |   +152.3 |   +197.6 |    +162.0
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |  1,243.4 |  1,208.2 |  1,206.9 |   1,133.5
     |
-----------------------------------------------------------------------------
     ---
|
Total equity                    |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |    717.5 |    741.3 |    764.5 |     800.6
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |    -31.8 |    -28.1 |    -38.2 |     -36.5
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |    685.7 |    713.2 |    726.3 |     764.1
     |
-----------------------------------------------------------------------------
     ---
|
Balance sheet total             |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |  2,839.7 |  2,837.9 |  2,845.9 |   2,626.4
     |
-----------------------------------------------------------------------------
     ---
|
- Adjustments                   |   +158.9 |   +155.4 |   +195.7 |    +150.7
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |  2,998.6 |  2,993.3 |  3,041.6 |   2,777.1
     |
-----------------------------------------------------------------------------
     ---

Consolidated
cash flow statement                                                

Under
the new interpretation, all sold residential units from own development  

projects will be recognised as income after the project is completed. As a   
  
result, the all cash flow connected with construction-stage contract
receivables
will in the future be reported as part of the cash flow from
financing          
activities. Under the old practice, the proportion of the
construction-stage    
contract receivables directed at sold residential units
was reported as part of 
the cash flow from operating activities.             
                          

The reporting of the net change in cash and cash
equivalents and their amount at
the end of the period will not be affected.   
                                
     

----------------------------------------------------------------------------
     ----
|
EUR million                     | 1-3/2009 | 1-6/2009 | 1-9/2009 | 1-12/2009
     |
-----------------------------------------------------------------------------
     ---
|
Net cash generated from         |          |          |          |          
|
| operating activities            |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     24.4 |     55.0 |     87.4 |     242.5
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     35.3 |     76.5 |    103.1 |     260.9
     |
-----------------------------------------------------------------------------
     ---
|
Net cash used in investing      |          |          |          |          
|
| activities                      |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |    -14.1 |    -16.9 |    -19.8 |     -31.1
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |    -14.1 |    -16.9 |    -19.8 |     -31.1
     |
-----------------------------------------------------------------------------
     ---
|
Operating cash flow after       |          |          |          |          
|
| investments                     |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     10.3 |     38.1 |     67.6 |     211.4
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     21.2 |     59.7 |     83.4 |     229.8
     |
-----------------------------------------------------------------------------
     ---
|
Net cash used in financing      |          |          |          |          
|
| activities                      |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     -4.1 |    -53.7 |    -24.0 |    -238.5
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |    -15.1 |    -75.2 |    -39.8 |    -256.9
     |
-----------------------------------------------------------------------------
     ---

Consolidated
key figures                                                        

The new
accounting principle will have an impact on nearly all key figures based
on
the income statement, balance sheet and cash flow statement items.          
     

----------------------------------------------------------------------------
     ----
|
                                |   1-3/09 |   1-6/09 |   1-9/09 |   1-12/09
     |
-----------------------------------------------------------------------------
     ---
|
Earnings per share, EUR         |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     0.02 |     0.14 |     0.29 |      0.53
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     0.06 |     0.21 |     0.29 |      0.55
     |
-----------------------------------------------------------------------------
     ---
|
Diluted earnings per share, EUR |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     0.02 |     0.14 |     0.29 |      0.53
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     0.06 |     0.21 |     0.29 |      0.55
     |
-----------------------------------------------------------------------------
     ---
|
Equity per share, EUR           |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     5.70 |     5.90 |     6.09 |      6.38
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     5.46 |     5.67 |     5.78 |      6.09
     |
-----------------------------------------------------------------------------
     ---
|
Net interest-bearing debt at    |          |          |          |          
|
| the end of period, EUR million  |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |    635.1 |    671.4 |    640.4 |     497.7
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |    674.1 |    699.7 |    674.4 |     529.1
     |
-----------------------------------------------------------------------------
     ---
|
Return on investment from the   |          |          |          |          
|
| last 12 months, %               |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     14.3 |     11.4 |      9.8 |      10.9
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     16.5 |     11.5 |     11.1 |      11.0
     |
-----------------------------------------------------------------------------
     ---
|
Equity ratio at end of period,  |          |          |          |          
|
| %                               |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     28.3 |     29.3 |     29.7 |      33.8
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     27.0 |     28.1 |     28.2 |      32.4
     |
-----------------------------------------------------------------------------
     ---
|
Gearing ratio at the end of     |          |          |          |          
|
| period, %                       |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |     88.5 |     90.6 |     83.8 |      62.2
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |     98.3 |     98.1 |     92.9 |      69.2
     |
-----------------------------------------------------------------------------
     ---
|
Gross capital expenditure on    |          |          |          |          
|
| non-current assets, % of        |          |          |          |        
  |
| revenue                         |          |          |          |      
   
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |      0.8 |      0.6 |      0.6 |       0.8
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |      0.8 |      0.6 |      0.6 |       0.8
     |
-----------------------------------------------------------------------------
     ---
|
Order backlog at the end of     |          |          |          |          
|
| period, EUR million             |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |  3,045.0 |  2,916.4 |  2,800.8 |   2,773.6
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |  3,256.3 |  3,120.0 |  3,059.6 |   2,983.3
     |
-----------------------------------------------------------------------------
     ---
|
Dividend payout, %              |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
- Reported in 2009              |        - |        - |        - |      74.9
     |
-----------------------------------------------------------------------------
     ---
|
- Adjusted comparison data      |        - |        - |        - |      73.2
     |
-----------------------------------------------------------------------------
     ---


Information
session, webcast and conference call                                

YIT
will hold an information session for investors and analysts on Tuesday,    

March 23, 2010, at 10:00 a.m. (Finnish time, EEST) at YIT's head office, at  
  
Panuntie 11, 00620 Helsinki, Finland. The information session will be held
in   
English. After the session, there will also be an opportunity to ask
questions  
in Finnish. The presentation material is available in English and
Finnish.      

The information session can be viewed live on YIT's website,
at                 
www.yitgroup.com/webcast. The webcast replay will be
available at the same      
address starting at approximately 12:00 noon.
Participants are requested to call
the assigned number +44 (0)207 1620 177 at
9:55 a.m. (Finnish time, EEST) at the
latest, i.e., at least 5 minutes before
the conference call begins.             

For further information, please
contact:                                        
Timo Lehtinen, Chief
Financial Officer, +358 (0)20 433 2258,                   

timo.lehtinen@yit.fi                                                         
  


YIT CORPORATION                                                        
        

Virva Salmivaara                                                   
            
Senior Vice President, Corporate Communications                  
              


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