Published: 2013-06-18 08:00:00 CEST
YIT
Company Announcement

YIT publishes ifrs comparative information for continuing operations

Helsinki, Finland, 2013-06-18 08:00 CEST (GLOBE NEWSWIRE) -- YIT Corporation        STOCK EXCHANGE RELEASE                               June 18, 2013 at 9:00 a.m.

  

YIT PUBLISHES IFRS COMPARATIVE INFORMATION FOR CONTINUING OPERATIONS

 

The Extraordinary General Meeting of YIT Corporation, held on June 17, 2013, has approved the demerger of YIT. The planned registration date for the demerger is June 30, 2013.  The shares of Caverion Corporation have been applied for public trading from July 1, 2013 onwards on NASDAQ OMX Helsinki Ltd.

 

The IFRS comparative information for YIT’s continuing operations for 2012 and the first quarter of 2013

 

YIT’s continuing operations consist of the Group’s Construction Services business. The comparative information presented in this release will be shown as corresponding figures in YIT’s future interim reports and financial statements. The IFRS comparative information differs from the non-IFRS information for YIT’s continuing operations published on May 21, 2013.

 

The comparative information shall furthermore consider the demerger to take place on the demerger’s implementation date (estimate June 30, 2013). Until then, the occurrences of YIT’s Building Services business to be transferred to Caverion Corporation are disclosed as a separate line item under discontinued operations in YIT’s income and cash flow statement. The balance sheet is not adjusted in the official comparative information compliant with IFRS; rather, it will also include the items associated with the Building Services business, thus corresponding to the previously reported balance sheet of YIT Corporation. Due to this, the balance sheet disclosed as comparative information does not, in this respect, illustrate the financial position of the continuing operations.

 

Accounting method applied to comparative information

 

The IFRS comparative information disclosed in this release has been drawn up in accordance with the International Financial Reporting Standard adopted in the European Union. The share belonging to the Building Services business is shown under discontinued operations in the income statement and cash flow statement. Expences and income related to assets and liabilities transferred to Caverion Corporation have been allocated to discontinued operations in the income statement. Balance sheet reference periods prior to the demerger include in accordance with IFRS 5, the assets and liabilities related to the Building Services business to be transferred to Caverion Corporation in connection with the implementation of the demerger. As such, the balance sheet does not illustrate the financial position of the continuing operations. Accordingly, this release does not show key figures calculated on the basis of the balance sheet.

 

The information in this release is unaudited.

 

1. KEY FIGURES

 

1.1 Quarterly development of the Group based on segment reporting (percentage of completion, POC)

 

 

  1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
Continuing operations            
Revenue, EUR million 452.0 444.4 488.9 470.3 555.4 1,959.0
Operating profit, EUR million 35.9 37.2 43.4 52.5 68.0 201.1
 % of revenue 7.9 8.4 8.9 11.2 12.2 10.3
Profit before taxes, EUR million 30.6 30.2 35.7 44.6 59.1 169.6
Profit for the review period, EUR million, continuing operations 1) 23.4 22.9 28.9 35.1 43.8 130.7
Discontinued operations            
Profit for the review period, EUR million 1), discontinued operations 2.2 11.0 11.7 13.5 1.3 37.4
Profit for the review period, EUR million 1),
Continuing and discontinued operations, total
25.6 33.9 40.6 48.6 45.0 168.1
Reconciliation to IFRS            
IFRIC 15 adjustment2) -0.5 2.6 6.2 -2.5 4.3 10.6
Profit for the review period, continuing operations IFRS1), 22.9 25.5 35.1 32.6 48.0 141.2
Profit for the review period, EUR million 1), 
discontinued operations, IFRS
2.2 10.9 11.6 13.6 1.3  
 
37.6
Profit for the review period, EUR million 1),
Continuing and discontinued operations, total, IFRS
25.1 36.4 46.7 46.2 49.3 178.6
 
Key figures, segment reporting            
Earnings/share, continuing operations, EUR 1) 0.19 0.18 0.23 0.28 0.35 1.04
Earnings/share, EUR 1), 
discontinued operations
0.01 0.09 0.09 0.11 0.01  
0.30
Earnings/share, EUR 1),
Continuing and discontinued operations, total
0.20 0.27 0.32 0.39 0.36 1.34
             
Earnings/share, diluted, continuing operations, EUR 0.19 0.18 0.23 0.28 0.35 1.04
Earnings/share, diluted, discontinued operations, EUR 0.01 0.09 0.09 0.11 0.01  
0.30
Earnings/share, diluted, continuing and discontinued operations, total, EUR 0.20 0.27 0.32 0.39 0.36 1.34
Order backlog at end of period, EUR million 2,710.2 2,570.9 2,686.6 2,748.4 2,765.1 2,765.1
Average number of personnel 6,658 6,508 6,813 6,860 6,741 6,730
Personnel at the end of period 6,689 6,505 7,001 6,756 6,691 6,691

1) Attributable to equity holders of the parent company

2) IFRIC 15 adjustment allocated to continuing operations

 

1.2 Revenue by business segment

 

 

EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
Construction Services Finland 326.0 329.5 347.9 308.9 342.6 1,329.0
International Construction Services 119.0 107.9 133.4 153.3 205.0 599.6
Other items 7.0 7.0 7.6 8.1 7.8 30.5
Revenue in total, segment reporting 452.0 444.4 488.9 470.3 555.4 1,959.0
IFRIC 15 adjustment -6.4 0.1 34.4 -11.7 7.1 29.9
Revenue in total, IFRS 445.6 444.5 523.3 458.6 562.5 1,988.9

 

1.3 Operating profit by business segment

 

 

EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
Construction Services Finland 26.5 31.4 33.5 28.9 40.2 134.1
International Construction Services 11.6 9.7 14.1 25.7 31.0 80.4
Other items -2.2 -3.9 -4.2 -2.1 -3.2 -13.4
Operating profit total, segment reporting 35.9 37.2 43.4 52.5 68.0 201.1

 

1.4 Operating profit margin by business segment

 

 

% 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
Construction Services Finland 8.1 9.5 9.6 9.3 11.7 10.1
International Construction Services 9.8 9.0 10.6 16.7 15.1 13.4

 

1.5 Order backlog by business segment

 

 

EUR million 3/13 3/12 6/12 9/12 12/12
Construction Services Finland 1,424.9 1,428.0 1,499.9 1,541.0 1,499.0
International Construction Services 1,285.3 1,142.9 1,186.7 1,207.4 1,266.1
Order backlog total, segment reporting 2,710.2 2,570.9 2,686.6 2,748.4 2,765.1
IFRIC 15 adjustment 335.7 419.8 363.9 443.4 343.5
Order backlog total, IFRS 3,045.9 2,990.7 3,050.5 3,191.8 3,108.6

 

1.6 Operative invested capital*)

 

 

EUR million 3/13 3/12 6/12 9/12 12/12
Construction Services Finland 584.2 552.1 515.3 546.8 581.7
International Construction Services 718.7 651.8 655.7 703.8 708.3

 

1.7 Return on operative invested capital*)

 

 

last 12 months, % 3/13 3/12 6/12 9/12 12/12
Construction Services Finland 22.7 24.6 25.0 24.3 23.5
International Construction Services 12.0 6.1 6.5 10.5 12.3

*) Only operational items are taken into account in calculating the segments’ invested capital.

 

2. GROUP REPORTING, IFRS


 

2.1 YIT Group figures by quarter, IFRS

 

 

  1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
Continuing operations            
Revenue, EUR million 445.6 444.5 523.3 458.6 562.5 1,988.9
Other operating income and expenses -409.4 -402.3 -470.7 -408.7 -488.6 -1,770.3
Depreciation, amortisation and impairment -5.2 -5.1 -5.1 -5.4 -5.0 -20.6
Operating profit, EUR million 31.0 37.2 47.4 44.5 68.9 198.0
 % of revenue 7.0 8.4 9.1 9.7 12.2 10.0
Financial income, EUR million 0.4 1.1 2.7 0.0 0.8 4.6
Exchange rate differences, EUR million -0.1 -0.9 -1.5 -1.4 -1.7 -5.5
Financial expenses, EUR million -1.0 -3.5 -4.6 -1.9 -3.3 -13.3
Profit before taxes, EUR million 30.3 33.9 44.0 41.2 64.7 183.8
 % of revenue 6.8 7.6 8.4 9.0 11.5 9.2
             
Income taxes -7.4 -7.9 -9.2 -8.3 -16.0 -41.5
Profit for the review period, continuing operations 22.9 25.9 34.8 32.9 48.7 142.3
 % of revenue 5.1 5.8 6.6 7.2 8.7 7.2
Equity holders of the parent company 22.9 25.5 35.1 32.6 48.0 141.2
Non-controlling interest 0.0 0.4 -0.3 0.3 0.7 1.1
Discontinued operations            
Profit for the review period, EUR million
discontinued operations
2.2 11.4 11.7 14.1 1.9 40.1
Equity holders of the parent company 2.2 10.9 11.7 13.6 1.3 37.4
Non-controlling interest 0.0 0.1 0.0 -0.1 0.1 0.1
Profit for the review period, EUR million
Continuing and discontinued operations, total
25.1 36.9 46.5 46.4 50.1 179.8
Equity holders of the parent company 25.1 36.4 46.7 46.2 49.3 178.6
Non-controlling interest 0.0 0.5 -0.3 0.2 0.8 1.2
             
Earnings/share, continuing operations, EUR 1) 0.18 0.20 0.28 0.26 0.38 1.13
Earnings/share, EUR 1), 
discontinued operations
0.02 0.09 0.09 0.11 0.02  
0.30
Earnings/share, EUR 1),
Continuing and discontinued operations, total
0.20 0.29 0.37 0.37 0.39 1.43
             
Earnings/share, diluted, continuing operations, EUR 0.18 0.20 0.28 0.26 0.38 1.13
Earnings/share, diluted, discontinued operations, EUR 0.02 0.09 0.09 0.11 0.02  
0.30
Earnings/share, diluted, continuing and discontinued operations, total, EUR 0.20 0.29 0.37 0.37 0.40 1.43
             
Gross capital expenditure, continuing operations, EUR million 8.8 6.0 6.5 7.9 8.0 28.4
 % of revenue 2.0 1.4 1.2 1.7 1.4 1.4
Unrecognised order backlog at end of period, EUR million 3,045.9 2,990.7 3,050.5 3,191.8 3,108.6 3,108.6
Personnel at the end of period 6,689 6,505 7,001 6,756 6,691 6,691

 

 


 

2.2 Consolidated balance sheet, IFRS

 

 

EUR million 3/13 3/12 6/12 9/12 12/12
Assets          
           
Non-current assets          
Tangible assets 107.5 110.9 108.1 109.7 110.6
Goodwill 346.6 347.5 347.5 346.6 346.6
Other intangible assets 58.5 61.1 62.3 62.7 61.8
Shares in associated companies 0.5 3.2 0.6 0.4 0.6
Other investments 3.3 3.9 3.8 3.1 3.4
Other receivables 4.8 7.8 6.7 6.4 6.3
Deferred tax receivables 53.3 64.4 53.7 55.9 49.8
           
Current assets          
Inventories 1,956.9 1,774.8 1,769.5 1,858.5 1,901.5
Trade and other receivables 982.5 1,037.3 1,114.3 1,118.2 1,015.5
Cash and cash equivalents 130.3 209.3 169.5 150.0 175.7
Total assets 3,644.3 3,620.2 3,635.8 3,711.4 3,671.6
           
Equity and liabilities          
           
Equity attributable to equity holders of the parent company          
Share capital 149.2 149.2 149.2 149.2 149.2
Other equity 794.0 711.1 744.1 808.9 856.7
           
Non-controlling interest 1.0 2.9 2.2 2.5 3.3
           
Total equity 944.2 863.3 895.5 960.6 1,009.2
           
Non-current liabilities          
Deferred tax liabilities 95.8 75.9 77.5 82.6 89.4
Pension obligations 45.2 63.3 59.1 55.5 52.4
Provisions 49.6 55.1 61.7 52.9 48.5
Borrowings 459.7 564.1 549.9 541.7 517.1
Other liabilities 37.3 49.8 42.6 40.0 32.6
           
Current liabilities          
Advances received 597.7 518.7 558.1 593.6 566.6
Trade and other liabilities 860.7 965.7 918.1 892.9 896.1
Provisions 44.6 63.2 50.7 56.1 54.9
Current borrowings 509.6 401.1 422.7 435.6 404.9
           
Total equity and liabilities 3,644.3 3,620.2 3,635.8 3,711.4 3,671.6

 

 

 

 

 

 

 

 

 

 

2.3 Consolidated cash flow statement

 

 

EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
Cash flow from operating activities            
Net profit for the financial year 22.9 25.9 34.8 32.9 48.7 142.3
Reversal of accrual-based items 12.6 23.2 24.0 13.7 24.8 85.7
Change in working capital            
 Change in current receivables -2.1 -40.3 -5.8 10.4 42.1 6.4
 Change in inventories -39.6 -46.9 -37.5 -62.3 -51.4 -198.0
 Change in current liabilities 18.7 57.1 61.9 14.1 -39.5 93.6
Change in working capital, total -23.0 -30.1 18.6 -37.7 -48.8 -98.0
Interest paid -10.1 -10.2 -9.3 -4.4 -6.6 -30.4
Other financial items, net -1.6 -4.4 -0.6 -1.9 0.3 -6.6
Interest received 0.3 0.7 0.6 0.5 1.4 3.2
Taxes paid -3.9 -13.1 -2.5 -3.4 -5.1 -24.1
Discontinued operations -1.0 11.0 -15.2 -25.4 79.0 49.3
Net cash generated from operating activities -3.6 3.0 50.4 -25.6 93.7 121.5
             
Cash flow from investing activities            
Purchases of property, plant and equipment -2.4 -3.7 -4.5 -7.3 -6.0 -21.5
Purchases of intangible assets -1.2 -2.5 -2.3 -0.7 -2.0 -7.5
Proceeds from sale of shares in associated companies       2.9   2.9
Proceeds from sale of tangible and intangible assets 1.0 0.0 2.2 0.3  
1.3
3.8
Sale of investments   0.1       0.1
Discontinued operations -1.2 -5.8 -3.2 -0.1 0.3 -8.8
Net cash used in investing activities         -3.9 -11.9 -7.8 -4.9 -6.4 -31.2
             
Operating cash flow after investments -7.5 -9.0 42.6 -30.5  
87.3
90.4
             
Cash flow from financing activities            
Change in loan receivables 2.4 -8.1 -3.7 5.5 -7.6 -13.9
Change in current liabilities 57.2 28.6 21.9 14.3 -99.6 -34.9
Proceeds from borrowings   50.0 50.0   50.0 150.0
Repayment of borrowings -5.3 -55.3 -60.3 -5,6 -0,5 -121,6
Payments of financial leasing debts -0.1 -0.1 0.0 -0.1 0.0 -0.2
Dividends paid -87.9   -88.1     -88.1
Discontinued operations -3.7 -3.5 -4.0 -3.8 -4.2 -15.5
Net cash used in financing activities -37.4 11.6 -84.2 10.3 -61.9 -124.2
             
Net change in cash and cash equivalents -44.9 2.6 -41.6 -20.2 25.4 -33.9
Cash and cash equivalents at beginning of period 174.6 204.8 209.3 167.6 149.3 204.8
Change in the fair value of cash equivalents 0.6 2.0 0.0 1.9 -0.1 3.8
Cash and cash equivalents at end of period 130.3 209.3 167.6 149.3 174.6 174.6

 


 

2.4 Exceptional items affecting operating profit

 

 

EUR million 1-3/13 1-3/12 4-6/12 7-9/12 10-12/12 1-12/12
International Construction Services       7.0   7.0
Total       7.0   7.0

 

The operating profit for International Construction Services for the third quarter of 2012 was improved by the cancellation of a EUR 7 million cost provision due to the ammonia issue in St. Petersburg. YIT made a provision of EUR 10 million during the third quarter of 2011 to cover the costs of rectifying the problem.

 

The registration document according to the Finnish Securities Markets Act, which includes information on Caverion and its business and financial position, as well as the securities note and summary (together with the registration document the “Prospectus”) related to the partial demerger disclosed by YIT on February 5, 2013 and the shares to be given as demerger consideration in connection with the partial demerger, have been available as of June 5, 2013 on YIT’s website at www.yit.fi/sijoittajat. The unofficial English translation of the Prospectus has been available as of June 5, 2013 on YIT’s website at www.yitgroup.com/investors.

 

 

For further information, please contact:

 

Timo Lehtinen, Chief Financial Officer, YIT Corporation, tel. +358 45 670 0626, timo.lehtinen@yit.fi

Hanna-Maria Heikkinen, Vice President, Investor Relations, YIT Corporation, tel. +358 20 433 2635, hanna-maria.heikkinen@yit.fi

 

 

YIT Corporation

 

Hanna-Maria Heikkinen

Vice President, Investor Relations

 

Distribution: NASDAQ OMX, principal media, www.yitgroup.com

 

YIT is a leading European service company in building systems, construction services and services for industry. Our 25,000 professionals serve customers in 14 countries in the Nordic and Baltic countries, Russia and Central Europe. For over one hundred years we have grown together with our customers and developed our services in line with the changes taking place in different societies. We intend to continue on that track. Our vision is to lead the way in creating and maintaining good living environments. In 2012, YIT’s revenue was approximately EUR 4.7 billion. YIT’s shares are listed on the NASDAQ OMX Helsinki. www.yitgroup.com

 

DISCLAIMER

This announcement is not an offer of securities for sale in any jurisdiction. No securities are being registered under the US Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration.  No public offering of securities is being made in the United States.

This release includes forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this communication, including, without limitation, those regarding the demerger plan and its execution. By their nature, forward looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. Such statements are based on numerous assumptions and may differ materially from (and be significantly more negative than) those made in, or suggested by, the forward-looking statements contained in this release.