YIT (YIT) Investor update summary

Change in revenue recognition method

• Segment reporting will adopt the percentage of completion (POC) method for self-developed projects starting Q1 2026, recognizing revenue throughout construction rather than at project completion.

• POC provides more timely and predictable profit information, reduces quarterly variance, and aligns profit recognition with market dynamics.

• Reconciliations between IFRS and POC reporting will be provided, with IFRS figures at group level and POC at segment level.

• The change does not impact group full-year guidance, strategic financial targets for 2025–2029, or adjusted operating profit guidance for 2026.

• After project completion, cumulative revenue is the same under both POC and IFRS methods.

Operating model and organizational changes

• Finnish residential business has shifted to a function-based model, centralizing production and quality control.

• Internal product development, centralized production, and customer engagement are now distinct organizational elements.

• Sales, marketing, and consumer insights are integrated to align apartment sales with expectations and improve project gross margin.

Financial impact and illustrative examples

• For Residential Finland, only a slight decrease in segment reporting revenue for 2025, with no impact on operating profit.

• In CEE, both sales and adjusted EBIT for 2025 increase under POC, with improved profit balance between quarters.

• Group-level segment reporting for 2025 shows revenue of €1,803 million and adjusted operating profit of €58 million, while IFRS revenue was €1,757 million.

• Capital employed increases by €17 million at end of 2025 under POC, with operative capital employed at €976 million.

• Group result for 2025 was a loss of €17 million, with earnings per share at -€0.11.