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YITís financial statement bulletin for 2005: Strong Earnings Growth Still On Track


Feb. 10, 2006, In 2005, YITís revenue and profit before taxes rose to record levels. All the business segments improved their operating profit and profitability. Building Systems focused on improving profitability. The business segmentís operating profit rose to a satisfactory 4.1 per cent of revenue. Construction Services racked up excellent earnings in all business areas, with operating profit representing 11.0 per cent of revenue. Demand for residences in Finland remained solid and other construction activity was also brisk. Residential construction in Russia, Estonia, Latvia and Lithuania was stepped up rapidly. Thanks to its high capacity utilization ratio and developed operations control, Industrial and Network Services posted a good result. The operating profit margin was 9.8. The Groupís outlook for 2006 is favourable.

Revenue grows by 9 per cent

In 2005, the YIT Groupís revenue saw organic growth of 9 per cent and was EUR 3,023.8 million (2004: EUR 2,780.1 million).

Of the revenue, 56 per cent (57%) came from Finland, 32 per cent (32%) from the other Nordic countries, 7 per cent (6%) from Lithuania, Latvia and Estonia and 4 per cent (3%) from Russia.

The share of revenue accounted for by the maintenance and servicing business increased to EUR 1,135.0 million (EUR 1,036.9 million), representing 38 per cent (37%) of total revenue.

Profit before taxes grows by 53 per cent

The Groupís operating profit amounted to EUR 227.7 million (EUR 157.4 million) and the operating profit margin was 7.5 per cent (5.7%). Profit before taxes was 53 per cent better than in the previous year, having risen to EUR 214.8 million (EUR 140.0 million). Return on investment was 26.4 per cent (19.1%).

Earnings per share increased by 56 per cent and amounted to EUR 2.52 (EUR 1.62). Equity per share rose to EUR 8.97 (EUR 7.20). The equity ratio was 36.3 per cent (31.0%). The financial position strengthened. The gearing ratio declined to 45.1 per cent (80.7%).

Proposed dividends: EUR 1.10

The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 1.10 be paid per share (EUR 0.70) for the 2005 financial year, representing 43.7 per cent of earnings per share. YIT is now increasing the dividend for the eleventh year running.

Order backlog grows

The Groupís uninvoiced backlog of orders was 3 per cent higher at the end of 2005 than a year earlier, having risen to EUR 1,878.8 million (EUR 1,823.4 million). Due to their nature, part of the Groupís maintenance and servicing operations are not included in the order backlog.

Number of employees 21,300

In 2005, the Group employed 21,194 (21,884) people on average. At the end of the year, the Group had 21,289 employees (21,680). Of YITís employees, 52 per cent work in Finland, 37 per cent in the other Nordic countries and 7 per cent in Lithuania, Latvia and Estonia and 4 per cent in Russia.

Market situation remains stable

Financial research institutions estimate that the national economies of the Nordic countries will develop at a stable rate of 2-3 per cent in 2006 and 2007, outpacing growth in the EU by about one percentage point. Russia and Norway benefit from the high price of oil. The rate of growth in the economies of Russia, Estonia, Latvia and Lithuania is about twice as fast as in the Nordic countries. Euro interest rates are seeing moderate growth. The positive trend in incomes and the improving employment situation bolster the confidence of households. The record-high population shift within Finland increases the need for residences, and housing sales remain brisk. Strong demand for housing in Russia makes it possible to expand residential construction over the long term, too. Growth in exports and industrial output increases the need for industrial investments and maintenance in the Nordic countries.

Outlook for 2006

We estimate that the pre-tax result for 2006 will be better than in the previous year.

Annual General Meeting

YIT Corporationís Annual General Meeting will be held on Monday, March 13, 2006, from 15:00 onwards at Finlandia Hall, Mannerheimintie 13 e, 00100 Helsinki, Finland. The full notice of meeting, including the Board of Directorsí proposals to the Annual General Meeting, will be published as a separate stock exchange release on February 10, 2006.

Annual Report 2005 and Interim Reports in 2006

The Annual Report for 2005 will be published in Finnish and English during week 9/2006. Interim Reports will be released on April 27, July 28 and October 27, 2006. Financial reports and other investor information can be read at our site,

The Report of the Board of Directors and a summary of the financial statement information are provided as an annex. Figures in the financial statement bulletin are unaudited.


Hannu Leinonen
Group CEO

Information sessions on February 10, 2006

A briefing for analysts and portfolio managers will be held at 10:00 (Finnish time) at YITís head office. The address is Panuntie 11, 00620 Helsinki, Finland. The briefing will be followed by a press conference at 13:00 (Finnish time) on the same premises.

A web casting presentation can be viewed at YITís site, The financial results for 2005 are presented in Finnish and English by Group CEO Hannu Leinonen.


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