Inside information: YIT is improving capital efficiency as part of its transformation program, with potential to release approximately EUR 400 million of capital by the end of 2024
YIT Corporation Inside information 20 June 2023 at 8:30 a.m.
Inside information: YIT is improving capital efficiency as part of its transformation program, with potential to release approximately EUR 400 million of capital by the end of 2024
On 10 February 2023, YIT launched a transformation program to improve the company’s performance and competitiveness. The program is progressing faster than originally estimated. As YIT has earlier announced, the targeted, inflation-adjusted run-rate cost savings are expected to be at least EUR 40 million by the end of 2024, with more than half of the planned run-rate cost savings expected to be achieved already during 2023.
“I’m pleased with the progress of the transformation program. We have identified and launched all measures to reach the targeted cost savings, and we are evaluating further opportunities to improve our efficiency”, said Heikki Vuorenmaa, President and CEO, YIT Corporation.
As communicated earlier, the transformation program also aims to improve YIT’s capital efficiency. The company has initiated a strategic review regarding certain assets and operations to secure the best possible value creation. The review concerns assets and operations such as YIT’s wind power development portfolio, infrastructure operations in Sweden, and selected investments, including YIT’s ownership stake in Tripla Mall.
“With these initiatives we have the opportunity to improve our capital efficiency, shift our capital allocation towards our more profitable growth areas, and operate with less capital employed going forward. We will continue to develop our three business segments: Housing, Business Premises and Infrastructure, and ensure that the Group has the necessary resources to do so”, Heikki Vuorenmaa continued.
YIT has the potential to release approximately EUR 400 million of capital by the end of 2024. The stated potential does not factor in inventory items such as self-developed projects, unsold apartments, or plots. There can be no assurance regarding the results or outcome of YIT's strategic review and capital release initiatives.
For further information:
Samu Heikkilä, Investor Relations Manager, YIT Corporation, tel. +358 44 581 7979, samu.heikkila@yit.fi
YIT Corporation
Tuomas Mäkipeska
CFO
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT is the largest Finnish and a significant North European development and construction company. We develop and build sustainable living environments: functional homes, future-proof public and commercial buildings, infrastructure for smooth mobility, and renewable energy solutions to benefit the climate. We employ around 5,000 professionals in nine countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2022 was EUR 2.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki. Read more: www.yitgroup.com