YIT (YIT) CMD 2024 summary

Strategic direction and financial targets

• Strategy for 2025–2029 focuses on resilience, industry-leading profitability, and capital efficiency, aiming to strengthen the company's position as a trusted partner.

• Financial targets by 2029: over 5% annual net sales growth, above 7% adjusted EBIT margin, and over 15% return on capital employed.

• Dividend policy aims to distribute at least 50% of net profit, with net debt to equity (gearing) targeted at 30%-70% over the cycle.

• Shift away from property investment and divestment of non-core assets to release capital and improve capital efficiency.

• Execution guided by industry-leading productivity, targeted growth and resilience, and enhanced customer and employee experience.

Operational improvements, sustainability, and cost discipline

• Achieved over EUR 40 million in permanent cost reductions since 2022, with further benefits expected from industrialized operations.

• Lead times in residential construction reduced by 15%, with a target to exceed 20% reduction.

• Enhanced project management and procurement practices have reduced margin deviations and improved productivity.

• Sustainability is a key differentiator, with SBTi-validated targets: 60% emissions reduction already achieved, aiming for -90% in own operations and -30% in value chain by 2030.

• Focus on employee skills, safety (CLTIF below 5), and high customer satisfaction through inclusive home ownership models.

Segment strategies and growth plans

• Residential Finland targets over 10% EBIT and 20%+ ROCE, leveraging a strong land/plot bank and improved customer experience.

• Residential CEE aims for over 15% annual growth, 15%+ EBIT, and 25%+ ROCE, focusing on organic growth and capital-efficient models.

• Building Construction targets above 6% EBIT margin, negative capital employed, and growth in industrial, datacenter, and renovation segments.

• Infrastructure segment targets above 6% EBIT margin, negative capital employed, and growth driven by energy and industrial projects.

• Contracting segments to operate with negative capital employed, funding residential growth.