YIT Oyj — Earnings Release 2019

Jul 4, 2019

YIT to update its result guidance for 2019 as a result of the sale of its paving business

YIT to update its result guidance for 2019 as a result of the sale of its paving business

YIT CORPORATION         Stock exchange release     Insider information
             July 4, 2019 at 8.31 a.m.
YIT to update its result guidance for 2019 as a result of the sale of its paving
business

YIT has today announced that it has signed an agreement with Peab for the sale
of YIT’s paving and mineral aggregates businesses in Finland, Sweden, Norway and
Denmark for EUR 280 million. The transaction is conditional upon the approval of
the competition authorities, and it is expected to be completed on January 1,
2020. YIT estimates to record a capital gain of approximately EUR 40 million
from the sale, which is not part of adjusted operating profit and which will be
recognised upon completion of the transaction, estimated to take place in
January 2020. Goodwill and purchase price allocation, altogether EUR 100
million, associated with Lemminkäinen and YIT merger, have been included in the
estimated capital gain.

In 2018, the illustrative combined revenue of the business to be sold was EUR
572 million and the combined adjusted operating profit was EUR 3.9 million.
Combined figures include Lemminkäinen’s financial statements for the accounting
period of January 1‒January 31, 2018. In connection with the above presented
transaction, YIT will classify the operations that are part of the transaction
as held-for-sale assets and will report them as discontinued operations. The
company will publish its retrospectively adjusted consolidated group and segment
level numbers for 2018 and 2019 before publishing its half-year report in July.

As a result of the transaction, YIT is updating its result guidance for 2019.

Updated result guidance for 2019

The Group revenue of continuing operations for 2019 is estimated to be in the
range of +5% and -5% compared to the 2018 combined revenue of continuing
operations (combined revenue of continuing operations 2018: approximately EUR
3,190 million).

In 2019, the adjusted operating profit of continuing operations is estimated to
be EUR 150-210 million (combined adjusted operating profit of continuing
operations 2018: approximately EUR 126 million).

Earlier, the company estimated the Group’s revenue for 2019 to be in the range
of +5% and -5% in comparison to the 2018 revenue (pro forma 2018: EUR 3,759.3
million). The adjusted operating profit for 2019 was estimated to be EUR 170-230
million (pro forma 2018: EUR 134.5 million).

Guidance rationale

The result guidance for 2019 is based, for instance, on the completion of Mall
of Tripla in the last quarter, the estimated time of completion of residential
projects under construction, and the company’s solid order backlog. At the end
of March, 73% of the order backlog had been sold.

Significant fluctuation is expected to take place between the quarters due to
normal seasonal variation, sales of business premises projects, and the time of
completion of residential projects and Mall of Tripla. As in 2018, the last
quarter of the year is expected to be clearly the strongest. The company
estimates that the adjusted operating profit for the second quarter of 2019 will
improve slightly from the comparison period (pro forma).

For further information, please contact:

Ilkka Salonen, CFO, YIT Corporation, tel. +358 45 359 4434, ilkka.salonen@yit.fi
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358
40 566 6070, hanna.jaakkola@yit.fi

YIT Corporation

Hanna Jaakkola
Vice President, Investor Relations

Distribution: Nasdaq Helsinki, main media, www.yitgroup.com

YIT is the largest Finnish and significant North European construction company.
We develop and build apartments and living services, business premises and
entire areas. We are also specialised in demanding infrastructure construction
and paving. Together with our customers, our nearly 10,000 professionals are
creating more functional, more attractive and more sustainable cities and
environments. We work in 11 countries: Finland, Russia, Scandinavia, the Baltic
States, the Czech Republic, Slovakia and Poland. The new YIT was born when over
100-year-old YIT Corporation and Lemminkäinen Corporation merged on February 1,
2018. Our pro forma revenue for 2018 was approximately EUR 3.8 billion. YIT
Corporation's share is listed on Nasdaq Helsinki Oy. www.yitgroup.com