YIT

Interim Report 1–9/2013

Construction Services
Finland

International Construction Services

YIT'S INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2013: Strategy execution proceeding in demanding market environment

July–September 2013 (segment reporting, POC)

Revenue decreased by 3%, to EUR 454.7 (7-9/2012: 470.3) million, Construction Services Finland -7% and International Construction Services +7%. At comparable exchange rates, revenue decreased by 1%.
Order backlog increased by 2% to EUR 2,813.4 (9/2012: 2,748.4) million. The order backlog was at the same level as at the end of June 2013.
Operating profit decreased by 29% to EUR 37.4 (7-9/2012: 52.5) million, Construction Services Finland -23% and International Construction Services -20%.
Operating profit excluding non-recurring items decreased by 18% to EUR 37.4 (7-9/2012: 45.5) million, Construction Services Finland -23% and International Construction Services +10%. The operating profit in the comparison period included a non-recurring release of a provision of EUR 7 million in International Construction Services.
Profit before taxes decreased by 33% to EUR 29.9 (7-9/2012: 44.6) million.
Earnings per share decreased by 36% to EUR 0.18 (7-9/2012: 0.28).

January–September 2013 (segment reporting, POC)

Revenue decreased by 5% to EUR 1,337.6 (1-9/2012: 1,403.6) million. However, the revenue of International Construction Services increased by 9%. At comparable exchange rates, the Group's revenue fell by 4%.
Operating profit declined by 16% to EUR 111.6 (1-9/2012: 133.1) million.
Operating profit excluding non-recurring items decreased by 11% to EUR 111.6 (1-9/2012: 126.1) million.
Profit before taxes decreased by 18% to EUR 90.3 (1-9/2012: 110.5) million.
Earnings per share decreased by 20% to EUR 0.55 (1-9/2012: 0.69).
The partial demerger was successfully finalized on June 30, 2013.

Guidance unchanged

The Group's revenue and operating profit based on the Group's segment reporting for 2013 will decrease from the level of 2012, excluding non-recurring items.

Continuing uncertainty over the general macroeconomic development impacts YIT's business operations and customers.

Kari Kauniskangas, President and CEO: Significant milestones in strategy implementation

In terms of the financial results, the third quarter was modest. Nevertheless, I am satisfied with the progress in International Construction Services, where we achieved significant milestones in important new projects. Among other things, YIT obtained acceptance for the city plan for two residential construction projects in St. Petersburg with a combined value of approximately EUR 1.5 billion. The segment's operating profit margin excluding non-recurring items also improved slightly from the previous year, and revenue continued to grow. The profitability of Construction Services Finland was impaired by the weakened sales mix in residential sales and the low revenue of Business Premises. However, with active sales to investors we were able to expedite the sales of completed apartments and halt the increase in the number of completed unsold apartments. Winning the design and implementation tender for the Central Pasila project with our one-billion-euro Tripla-proposal was a significant milestone in the implementation of our strategy in Finland.

With continued macroeconomic uncertainty in the third quarter, our focus is currently particularly on sales as well as improving cash flow, cost- and capital efficiency. In the short term, we aim to reduce the level of completed unsold apartments and complete the sales of business premises projects currently under construction. Further goals include maintaining positive cash flow and finding new partners to finance plot investments and large area development projects as well as releasing approximately EUR 150 million from slow-moving assets over the next three years, mainly in International Construction Services. At the same time, we are building a foundation for future growth by moving forward with strategically important projects.

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Key figures

Segment reporting, POC

Revenue, EUR million	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
Construction Services Finland	287.5	308.9	-7%	892.7	986.4	-9%	1,329.0
International Construction Services	164.3	153.3	7%	429.0	394.6	9%	599.6
Other items	2.9	8.1		15.9	22.6		30.3
Group, total	454.7	470.3	-3%	1,337.6	1,403.6	-5%	1,959.0
Operating profit, EUR million	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
---	---	---	---	---	---	---	---
Construction Services Finland	22.2	28.9	-23%	71.6	93.8	-24%	134.1
International Construction Services	20.5	25.7	-20%	49.8	49.5	1%	80.4
Other items	-5.4	-2.1		-9.8	-10.2		-13.4
Group, total	37.4	52.5	-29%	111.6	133.1	-16%	201.1
Operating profit margin, %	7-9/13	7-9/12		1-9/13	1-9/12		1-12/12
---	---	---	---	---	---	---	---
Construction Services Finland	7.7	9.3		8.0	9.5		10.1
International Construction Services	12.5	16.7		11.6	12.5		13.4
Group, total	8.2	11.2		8.3	9.5		10.3
Operating profit excluding non-recurring items, EUR million	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
---	---	---	---	---	---	---	---
Construction Services Finland	22.2	28.9	-23%	71.6	93.8	-24%	134.1
International Construction Services	20.5	18.7	10%	49.8	42.5	17%	73.4
Other items	-5.4	-2.1		-9.8	-10.2		-13.4
Group, total	37.4	45.5	-18%	111.6	126.1	-11%	194.1
Operating profit margin excluding non-recurring items, %	7-9/13	7-9/12		1-9/13	1-9/12		1-12/12
---	---	---	---	---	---	---	---
Construction Services Finland	7.7	9.3		8.0	9.5		10.1
International Construction Services	12.5	12.2		11.6	10.8		12.2
Group, total	8.2	9.7		8.3	9.0		9.9
Order backlog, EUR million	9/13	6/13	Change	9/13	9/12	Change	12/12
---	---	---	---	---	---	---	---
Construction Services Finland	1,555.1	1,584.0	-2%	1,555.1	1,541.0	1%	1,499.0
International Construction Services	1,258.3	1,226.8	3%	1,258.3	1,207.4	4%	1,266.1
Group, total	2,813.4	2,810.8	0%	2,813.4	2,748.4	2%	2,765.1
	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
---	---	---	---	---	---	---	---
Profit before taxes, EUR million	29.9	44.6	-33%	90.3	110.5	-18%	169.6
Profit for the review period, EUR million 1)	23.1	35.1	-34%	69.5	86.1	-19%	130.4
Earnings/share, EUR	0.18	0.28	-36%	0.55	0.69	-20%	1.04
Operating cash flow after investments, EUR million	-82.0	-5.0		-164.2	41.9		49.9
	9/13	9/12	Change	9/13	9/12	Change	12/12
Personnel at the end of the period	6,384	6,756	-6%	6,384	6,756	-6%	6,691
Return on investment (last 12 months), %	12.3	n/a		12.3	n/a		15.0
Equity ratio, %	37.0	37.9		37.0	37.9		43.1

1) Attributable to equity holders of the parent company

Group reporting, IFRS

	9/13	6/13	Change	9/13	9/12	Change	12/12
Net interest-bearing debt, EUR million (2012 non-IFRS)	774.4	688.1	12%	774.4	617.2	4%	543.9
Gearing ratio, % (2012 non-IFRS)	123.7	109.8		123.7	106.1		80.9

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INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2013

Group financial development based on segment reporting
Development by business segments
Group financial development based on Group reporting (IFRS, IFRIC 15)
Personnel
Mission, vision and values
Strategic objectives
Resolutions passed at General Meetings
Shares and shareholders
Most significant short-term business risks and risk management
Outlook for 2013
Tables to the interim report

Group financial development based on segment reporting

Accounting principles applied in the interim report

YIT Corporation's management follows the development of the company's business according to the percentage of completion-based reporting method for each segment. Therefore, the text section of the interim report focuses on describing the company's performance according to this reporting. YIT also reports on its operations in accordance with IFRS guidelines, where the company applies, for example, the IFRIC 15 guidelines. The effects of the differences of the recognition principles are presented in detail in the tables to the interim report.

Unless otherwise stated, the text section of the interim report concerns the construction business, i.e. the continuing operations after the partial demerger. The demerger of Caverion Corporation from YIT was finalized on June 30, 2013. The result of building services for January–June 2013 is reported under discontinued operations (tables section). The income and expenses related to assets and liabilities transferred to Caverion Corporation in the partial demerger have been allocated to discontinued operations in the income statement. In accordance with IFRS 5, the balance sheets for the comparison periods preceding the demerger include the assets and liabilities related to the Building Services business transferred to Caverion Corporation in connection with the implementation of the demerger. As such, the balance sheets do not illustrate the financial position of the continuing operations. In addition, the interim report contains non-IFRS figures as historical reference figures, which best illustrate the financial position of the continuing operations.

In addition to Caverion's net result, the costs relating to the demerger and the difference between the book value and fair value of net assets transferred to Caverion are reported under discontinued operations.

Revenue

Revenue (segment reporting, POC), EUR million	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
Construction Services Finland	287.5	308.9	-7%	892.7	986.4	-9%	1,329.0
International Construction Services	164.3	153.3	7%	429.0	394.6	9%	599.6
Other items	2.9	8.1		15.9	22.6		30.3
Group, total	454.7	470.3	-3%	1,337.6	1,403.6	-5%	1,959.0

YIT's revenue decreased by 5% year-on-year in January–September to EUR 1,337.6 million (1-9/2012: EUR 1,403.6 million). Changes in foreign exchange rates had a EUR 16.5 million negative impact on the revenue compared to the comparison period. Finland accounted for 68% (1-9/2012: 72%) of the Group's revenue, while Russia accounted for 26% (1-9/2012: 21%) and the Baltic countries, the Czech Republic and Slovakia for 6% (1-9/2012: 7%).

YIT's revenue decreased by 3% year-on-year in July–September to EUR 454.7 million (7-9/2012: EUR 470.3 million). Changes in foreign exchange rates had a EUR 10.6 million negative impact on the revenue compared to the corresponding period in the previous year. Revenue of International Construction Services

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grew year-on-year, supported by the high Russian residential production volume and continued good residential sales, despite the depreciation of the ruble. The revenue of Construction Services Finland decreased due to weaker residential and business premises sales.

Profit

Operating profit (segment reporting, POC), EUR million	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
Construction Services Finland	22.2	28.9	-23%	71.6	93.8	-24%	134.1
International Construction Services	20.5	25.7	-20%	49.8	49.5	1%	80.4
Other items	-5.4	-2.1		-9.8	-10.2		-13.4
Group, total	37.4	52.5	-29%	111.6	133.1	-16%	201.1
Operating profit margin (segment reporting, POC), %	7-9/13	7-9/12		1-9/13	1-9/12		1-12/12
---	---	---	---	---	---	---	---
Construction Services Finland	7.7	9.3		8.0	9.5		10.1
International Construction Services	12.5	16.7		11.6	12.5		13.4
Group, total	8.2	11.2		8.3	9.5		10.3

YIT's operating profit in January–September decreased by 16% year-on-year to EUR 111.6 million (1-9/2012: EUR 133.1 million). The operating profit margin was 8.3% (1-9/2012: 9.5%). The operating profit in the comparison period was positively impacted by the release of a provision of EUR 7 million in International Construction Services. Due to a change in accounting principles that took effect at the beginning of 2013, the operating profit for the review period does not include borrowing costs according to IAS 23 (the comparison figures have been adjusted accordingly). Changes in foreign exchange rates reduced revenue by EUR 2.6 million compared to the corresponding period in the previous year.

Operating profit in July–September decreased by 29% year-on-year to EUR 37.4 million (7-9/2012: EUR 52.5 million). The operating profit margin was 8.2% (7-9/2012: 11.2%). Profitability was impaired by the weakened sales mix in Finnish residential and the lower revenue from Business Premises. Furthermore, the operating profit in the comparison period was positively impacted by the release of a provision of EUR 7 million in International Construction Services. The development of the profit and profitability of International Construction Services was restricted by the more moderate price development in the Russian housing market compared to the previous year. Changes in foreign exchange rates had a EUR 1.7 million negative impact on the operating profit compared to the corresponding period in the previous year.

Profit before taxes for January–September decreased by 18% year-on-year to EUR 90.3 million (1-9/2012: EUR 110.5 million). Profit before taxes for July–September decreased by 33% year-on-year to EUR 29.9 million (7-9/2012: EUR 44.6 million).

The profit to the equity holders of the parent company for the period of January–September decreased by 20% year-on-year to EUR 69.6 million (1-9/2012: EUR 86.9 million). The profit for July–September decreased by 34% year-on-year to EUR 23.1 million (7-9/2012: EUR 35.1 million).

Earnings per share for January–September decreased by 20% year-on-year to EUR 0.55 (1-9/2012: EUR 0.69). Earnings per share for July–September decreased by 36% year-on-year to EUR 0.18 (7-9/2012: EUR 0.28).

The effective tax rate was 23.0% during the review period (1-9/2012: 20.8%).

Order backlog

Order backlog (segment reporting, POC), EUR million	9/13	6/13	Change	9/13	9/12	Change	12/12
Construction Services Finland	1,555.1	1,584.0	-2%	1,555.1	1,541.0	1%	1,499.0
International Construction Services	1,258.3	1,226.8	3%	1,258.3	1,207.4	4%	1,266.1
Group, total	2,813.4	2,810.8	0%	2,813.4	2,748.4	2%	2,765.1

YIT's order backlog increased by 2% year-on-year to EUR 2,813.4 million (9/2012: EUR 2,748.4 million). The Group started the construction of 1,793 apartments during the third quarter.

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Acquisitions and capital expenditure

YIT made no acquisitions during the review period. YIT increased its holding in YIT Moskovia by 5.92 percentage points during the review period and now holds all of the shares in the company. The purchase price was EUR 5.1 million.

Gross capital expenditure on non-current assets totaled EUR 14.8 million during January–September (1-9/2012: EUR 20.4 million), or 1.1% (1-9/2012: 1.5%) of revenue. Investments in construction equipment amounted to EUR 4.0 million (1-9/2012: EUR 11.3 million) and investments in information technology to EUR 2.8 million (1-9/2012: EUR 5.8 million). Other investments, including the acquisition of the minority share of YIT Moskovia, amounted to EUR 8.0 million (1-9/2012: EUR 3.3 million).

During the second quarter of 2013 YIT sold information technology assets in connection with the demerger to Caverion Corporation. The sales price was EUR 20.8 million.

YIT recorded EUR 14.7 million in depreciation during the review period (1-9/2012: EUR 15.6 million)

Cash flow and invested capital

The operating cash flow after investments amounted to EUR -164.2 million in January–September (1-9/2012: EUR 41.9 million). The operating cash flow after investments in July–September was EUR -82.0 million (7-9/2012: EUR -5.0 million). Cash flow in July–September was negatively impacted by the increase in working capital especially in Construction Services Finland. EUR 26.1 million of this was tied to the progress in construction of business premises projects for sale. The cash flow of plot investments in July–September amounted to EUR -34.1 million.

Return on investment amounted to 12.3% for the last 12 months (7/2012–6/2013: 13.9%). At the end of September, the Group's invested capital based on segment reporting amounted to EUR 1,592.8 million (6/2013: EUR 1,492.5 million). Invested capital is calculated by deducting non-interest bearing liabilities from the balance sheet total.

Development by business segments

Development by business segments is presented using figures based on segment reporting.

CONSTRUCTION SERVICES FINLAND

	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
Revenue, EUR million	287.5	308.9	-7%	892.7	986.4	-9%	1,329.0
Operating profit, EUR million	22.2	28.9	-23%	71.6	93.8	-24%	134.1
Operating profit margin, %	7.7	9.3		8.0	9.5		10.1
	9/13	6/13	Change	9/13	9/12	Change	12/12
---	---	---	---	---	---	---	---
Operative invested capital, EUR million	730.7	649.5	13%	727.5	546.8	33%	581.7
Order backlog, EUR million	1,555.1	1,584.0	-2%	1,555.1	1,541.0	1%	1,499.0
	10/12-9/13	7/12-6/13
---	---	---
Return on operative invested capital (last 12 months), %	17.5	20.4

The revenue of Construction Services Finland decreased by 9% year-on-year to EUR 892.7 million in January–September (1-9/2012: EUR 986.4 million). Revenue for July–September decreased by 7% year-on-year to EUR 287.5 million (7-9/2012: EUR 308.9 million). Revenue decreased in residential construction and, in particular, in Business Premises during July–September.

Operating profit in January–September decreased by 24% year-on-year to EUR 71.6 million (1-9/2012: EUR 93.8 million). Operating profit in July–September decreased by 23% year-on-year to EUR 22.2 million (7-9/2012: EUR 28.9 million). Profitability was negatively impacted by the weakened sales mix in residential construction and the lower revenue in Business Premises.

The order backlog at the end of September was on a par with the previous year, amounting to EUR 1,555.1 million (9/2012: EUR 1,541.0 million). The order backlog remained stable also compared to the end of June (EUR 1,584.0 million).

The segment's return on operative invested capital for the last 12 months was 17.5%, which is below the Group's strategic target (20%). YIT aims to increase the segment's return on invested capital by reducing the level of unsold completed apartments and by selling the own-developed business premises projects currently under construction.

The segment's capital tied up in plot reserves totalled EUR 289.7 million at the end of September (6/2013: EUR 282.6 million). The reserves included 1,854,000 sq. m. of building rights for residential plots (6/2013: 1,818,000) and 890,000 sq. m. for business premises plots (6/2013: 870,000).

In September, an evaluation team appointed by the City of Helsinki and the Finnish state proposed YIT as the winner of the design and implementation tender for the Central Pasila centre in Helsinki. The Tripla Centre in Central Pasila is a hybrid project combining residential, business premises and infrastructure construction with a total value of approximately EUR 1 billion. The construction of the project will begin when the local plan is confirmed, which is estimated to take place in 2015, and it will be implemented in phases over approximately 10 years. The result of the competition will be confirmed by way of a decision of the Helsinki City Council, the Board of Directors of Senate Properties and the Parliament of Finland during 2013.

In Tampere, the City Council approved the move of the Rantaväylä highway into a tunnel over a distance of approximately 2.3 kilometres. In conjunction with the approval of the Rantaväylä tunnel, the local plan was confirmed for an area freed up by the motorway on the shore of Lake Näsijärvi, in the immediate vicinity of the city centre. YIT was allocated building rights for approximately 80,000 sq. m. in the newly zoned area. The construction of the new area is estimated to begin in 2015, with the first buildings scheduled for completion when traffic from Paasikiventie is moved to the newly constructed tunnel in 2017.

Investor deals compensated residential sales

In Finland, apartment sales normalised at the beginning of the autumn, but sales of detached and terraced houses have remained at a low level compared to YIT's supply. As a result, the estimate for residential sales in Finland was lowered for the rest of the year in September. In July–September, investor sales to both institutional and private investors played a key role as consumer sales remained lower than in the previous year.

During the third quarter, demand focused particularly on apartments in the final stages of construction and completed apartments. Housing prices have remained stable and interest rates are low. Customers' access to financing has remained more challenging than in the previous year, although there have been some signs of slight improvement in the lending terms of banks in the early autumn. YIT has also developed cross-border sales between the different operating countries. The demand for residential and leisure time housing in Eastern Finland among Russian customers has remained at a good level.

YIT estimates that apartment sales to consumers will be around 120 pieces in October.

Residential construction in Finland, pcs	7-9/13	4-6/13	Change	1-9/13	1-9/12	Change	1-12/12
Sold	624	717	-13%	2,056	2,160	-5%	2,757
- of which directly to consumers	489**	334	46%	1,484*	1,364	9%	1,869
Start-ups	553	975	-43%	2,114	2,325	-9%	2,856
- of which directly to consumers	418	592	-29%	1,542	1,529	1%	1,968
Completed	620	725	-14%	2,240	2,143	5%	2,722
- of which directly to consumers	377	526	-28%	1,463	1,937	-24%	2,364
Under construction at the end of the period	4,114	4,181	-2%	4,114	4,288	-4%	4,240
- of which sold at the end of the period	2,334	2,333	0%	2,334	2,409	-3%	2,409
For sale at the end of the period	2,339	2,412	-3%	2,339	2,348	0%	2,282
- of which completed	559	564	-1%	559	469	19%	451

) Includes 329 apartments sold to Ålandsbanken and OP-Pohjola housing funds.
*) Includes 108 apartments units sold to Ålandsbanken and OP-Pohjola housing funds.

Changes in the number of apartments may take place after the start of construction due to the division or combination of apartments.

The focus of YIT's housing construction is on residential development projects aimed directly at consumers in accordance with market demand. YIT is also active in housing production aimed at investors. During the third quarter, YIT started construction on 418 apartments as the company's own development projects. In addition, YIT started construction on 135 apartments as tender-based projects. YIT has actively supplemented its plot reserves by acquiring plots and making preliminary agreements on plots in order to ensure good opportunities for residential start-ups in the future.

Of the apartments under construction, 57% have been sold (9/2012: 56%), which reduces YIT's sales risk. The company was also successful in halting the increase in the number of completed unsold apartments in the third quarter. The sales inventory is focused on medium-priced residential production: approximately 67% of the apartments for sale are priced at less than EUR 300,000.

YIT is well prepared to adjust its residential production according to the market situation. The costs of completing the current residential and business premises development projects for sale amounted to EUR 374.7 million at the end of September 2013 (9/2012: EUR 315.5 million).

Challenges in the business and commercial premises market

A slight downward trend continued in the business and commercial premises market during the third quarter, and the order backlog of YIT's Business Premises division declined from the end of the second quarter. The leasing of business premises under construction progressed well in July–September: lease agreements were signed on approximately 13,000 sq. m. of premises. Rents for business premises remained stable in July–September, but investors' yield requirements increased slightly.

In August, YIT signed an agreement for the renovation and expansion of Lintuvaara School and day-care centre in Espoo, Finland. The project will be carried out in partnership with Caverion. YIT has several business premises projects under construction for sale. The total value of the projects is in excess of EUR 80 million, a substantial proportion of which will be recorded as income when sales agreements are signed. YIT aims to sell the projects during the fourth quarter, but the timing of the project sales involves uncertainty.

Development of Infra Services remained stable

The demand for infrastructure construction remained stable in the third quarter and the order backlog of Infra Services was on a par with the end of June. As expected, YIT signed regional road maintenance contracts in Hyvinkää, Hämeenlinna, Kauhajoki and Kotka. YIT also won a tender for regional maintenance work in Kuhmo for a period of one year. The value of the new maintenance projects is approximately EUR 63 million. In September, YIT acquired the rights for a wind farm project from Lestijärven Tuulivoima Oy, which currently includes plans for building over 80 wind turbines of 3 MW each in Lestijärvi. The acquisition supports YIT's strategic objective of increasing its own-developed production in Infra Services.

Significant ongoing route projects proceeded as planned during the third quarter.

INTERNATIONAL CONSTRUCTION SERVICES

	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
Revenue, EUR million	164.3	153.3	7%	429.0	394.6	9%	599.6
Operating profit, EUR million	20.5	25.7	-20%	49.8	49.5	1%	80.4
Operating profit margin, %	12.5	16.7		11.6	12.5		13.4
	9/13	6/13	Change	9/13	9/12	Change	12/12
---	---	---	---	---	---	---	---
Operative invested capital, EUR million	729.1	709.4	3%	729.1	703.8	4%	708.3
Order backlog, EUR million	1,258.3	1,226.8	3%	1,258.3	1,207.4	4%	1,266.1

---	---	---
Return on operative invested capital (last 12 months), %	11.3	12.6

The revenue in International Construction Services for January–September increased by 9% to EUR 429.0 million (1-9/2012: EUR 394.6 million). At comparable exchange rates, revenue increased by 13%. Revenue for the third quarter increased by 7% year-on-year, amounting to EUR 164.3 million (7-9/2012: EUR 153.3 million). At comparable exchange rates, revenue grew by 14%.

The operating profit for January–September was on a par with the corresponding period in the previous year, amounting to EUR 49.8 million (1-9/2012: EUR 49.5 million). Operating profit in July–September decreased by 20% year-on-year to EUR 20.5 million (7-9/2012: EUR 25.7 million). The operating profit in the comparison period was positively impacted by the release of a provision of EUR 7 million. Excluding the effect of the release of the provision, third quarter operating profit increased by 10% year-on-year. The growth in revenue and operating profit was supported by the high volume of housing production and continued good residential sales in Russia.

The order backlog at the end of September increased by 4% year-on-year to EUR 1,258.3 million (9/2012: EUR 1,207.4 million). The order backlog also grew from the end of June 2013, at which time it stood at EUR 1,226.8 million. The effect of changes in foreign exchange rates on the order backlog compared to the end of September was EUR -98.5 million.

The costs of completing the current own-developed residential and business premises projects for sale amounted to EUR 558.0 million at the end of September 2013 (9/2012: EUR 482.0 million).

The segment's return on operative invested capital for the last 12 months was 11.3%, which is below the Group's strategic target (20%). YIT aims to increase the segment's return on invested capital primarily by increasing the volume of operations, improving project-level profitability and further increasing capital efficiency.

The segment's capital tied up in plot reserves and plot development costs totalled EUR 383.6 million at the end of September (6/2013: EUR 377.5 million). The reserves included 2,546,000 sq. m. of building rights for residential plots (6/2013: 2,688,000) and 534,000 sq. m. for business premises plots (6/2013: 534,000) in Russia, the Baltic countries, the Czech Republic and Slovakia.

Russian residential sales continued strong

Russia generated 80% of the revenue of International Construction Services for January–September (1-9/2012: 76%). Revenue in Russia increased by 15% year-on-year to EUR 344.4 million (1-9/2012: EUR 300.4 million).

Capital tied up in plot reserves in Russia amounted to EUR 304.4 million at the end of September (6/2013: EUR 297.1 million). The reserves included 2,185,000 sq. m. of building rights for residential plots (6/2013: 2,315,000) and 436,000 sq. m. for business premises plots (6/2013: 436,000).

Residential construction in Russia, pcs	7-9/13	4-6/13	Change	1-9/13	1-9/12	Change	1-12/12
Sold	1,162	1,037	12%	3,088	2,921	6%	4,209
Start-ups	1,106	941	18%	3,193	3,669	-13%	5,487
Completed 1)	727	713	2%	1,952	1,980	-1%	4,197
Under construction at the end of the period	9,897	9,518	4%	9,897	8,995	10%	8,662
- of which sold at the end of the period	3,805	3,429	11%	3,805	3,576	6%	3,020
For sale at the end of the period	6,654	6,706	-1%	6,654	5,961	12%	6,530
- of which completed	562	617	-9%	562	542	4%	888
Under construction at the end of the period	9/13	6/13	Change	9/13	9/12	Change	12/12
---	---	---	---	---	---	---	---
St. Petersburg	2,223	1,978	12%	2,223	2,323	-4%	2,686
Moscow Oblast	4,305	4,317	0%	4,305	4,259	1%	3,796
Yekaterinburg, Kazan, Rostov-on-Don, Tyumen and Moscow	3,369	3,223	5%	3,369	2,413	40%	2,180

1) Completion of the projects requires commissioning by the authorities.

In Russia, the focus of operations is on residential development projects in St. Petersburg, Moscow and cities in the Moscow Oblast, Yekaterinburg, Kazan, Rostov-on-Don and Tyumen.

Residential sales were supported by continued good consumer confidence in Russia, with particularly strong demand for small apartments. YIT's residential sales have also been supported by the company's established position as a reliable construction company in Russia, its diverse housing offering, its own marketing and sales promotion measures and extensive housing loan cooperation with banks. The importance of mortgages has remained high in Russia, and, in the third quarter, customers took out housing loans in 46% of YIT's residential deals. YIT has also developed cross-selling between the different operating countries.

Residential sales remained on a good level in July–September and YIT estimates that it will sell around 400 apartments in Russia in October. The supply of housing by YIT's competitors has increased in certain markets, which has had an effect on the price increases pursued by the company. On average, housing prices remained stable in July–September. Construction costs have continued growing moderately.

In St. Petersburg, the authorities' permitting process has normalized, and YIT is increasing the number of start-ups in St. Petersburg during the second half of the year following a slow start to the year. In addition to starting the Smolny project, YIT obtained acceptance for the city plan in September for a regional project of nearly 10,000 apartments in Novo-Orlovski in St. Petersburg. Construction of the first phase of the project will commence this winter. YIT also started construction at the company's first site in Tyumen in September, as planned.

The number of apartments for sale has been increased in a controlled manner, and the sales inventory at the end of September was balanced. Of the apartments under construction, 38% were sold (9/2012: 40%). The number of completed unsold apartments decreased slightly in the third quarter.

After the handover of residential projects, YIT offers its customers service and maintenance in St. Petersburg, the Moscow region, Yekaterinburg and Rostov-on-Don. At the end of September 2013, YIT was responsible for the service and maintenance of approximately 15,000 apartments.

Regional differences between the Baltic countries and Central Eastern Europe

Estonia, Latvia, Lithuania, the Czech Republic and Slovakia accounted for 20% of the revenue of International Construction Services for January–September (1-9/2012: 24%). Revenue generated in these countries decreased by 10% year-on-year to EUR 84.7 million (1-9/2012: EUR 94.2 million) due to lower tender-based sales. Capital tied up in plot reserves in the Baltic countries, the Czech Republic and Slovakia totaled EUR 79.2 million at the end of September (6/2013: EUR 80.4 million). The reserves included 361,000 sq. m. of building rights for residential plots (6/2013: 373,000) and 98,000 sq. m. for business premises plots (6/2013: 98,000).

Residential sales improved in the Baltic countries, the Czech Republic and Slovakia in the third quarter compared to the corresponding period. Also Russian customers have been interested in YIT's residential projects in Riga, Latvia, and Prague, in the Czech Republic. YIT will shift the focus of operations from tender-based production to own development in order to improve profitability as residential demand recovers.

Residential construction in the Baltic countries and Central Eastern Europe, pcs	7-9/13	4-6/13	Change	1-9/13	1-9/12	Change	1-12/12
Sold	133	134	-1%	376	266	41%	384
Start-ups	134	286	-53%	534	530	1%	530
Completed	139	0	-	285	314	-9%	421
Under construction at the end of the period	970	970	0%	970	822	18%	715
- of which sold at the end of the period	205	166	23%	205	131	56%	108
For sale at the end of the period	906	900	1%	906	861	5%	743
- of which completed	141	96	47%	141	170	-17%	136

During the review period, housing prices increased slightly in the Baltic countries and remained stable in the Czech Republic and Slovakia. The overall demand for YIT's apartments remained good, but political uncertainty in the Czech Republic has had a negative impact on consumer confidence and housing demand. YIT's residential sales inventory has grown in the Baltic countries, the Czech Republic and Slovakia, and YIT aims to increase the number of apartments for sale in accordance with demand.

Business premises in the Baltic countries and Central Eastern Europe

YIT did not start any new business premises projects in the Baltic countries and Central Eastern Europe in July–September. The construction of a Prisma shopping centre in Vilnius, which began in the second quarter, progressed as planned.

Euromoney magazine selected YIT as the best real estate developer in Latvia for 2013.

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Group financial development based on group reporting (IFRS, IFRIC 15)

	7-9/13	7-9/12	Change	1-9/13	1-9/12	Change	1-12/12
Revenue, EUR million	363.0	458.6	-21%	1,245.7	1,426.4	-13%	1,988.9
Operating profit, EUR million	11.7	44.5	-74%	75.0	129.1	-42%	198.0
Operating profit margin, %	3.2	9.7		6.0	9.1		10.0
Profit before taxes, EUR million	8.8	41.2	-79%	67.2	119.1	-44%	183.8
Profit for the review period, EUR million 1)	7.6	32.6	-77%	52.5	93.2	-44%	141.2
Earnings/share, EUR	0.06	0.26	-77%	0.42	0.74	-43%	1.13
Operating cash flow after investments, EUR million	-82.0	-5.0		-164.2	41.9		49.9

1) attributable to equity holders of the parent company

	9/13	6/13	Change	9/13	9/12	Change	12/12
Order backlog, EUR million	3,259.5	3,176.0	3%	3,259.5	3,191.8	2%	3,108.6
Return on investment (last 12 months) %, non-IFRS	9.8	12.6		9.8	n/a		15.0
Equity ratio, % (comparison figures for 2012 non-IFRS)	33.6	34.9		33.6	34.6		39.8
Gearing ratio, % (comparison figures for 2012 non-IFRS)	123.7	109.8		123.7	106.1		80.9

After IFRS adjustments, consolidated revenue for the period of January–September decreased by 13% year-on-year to EUR 1,245.7 million (1-9/2012: EUR 1,426.4 million). Revenue for July–September decreased by 21% year-on-year, to EUR 363.0 million (7-9/2012: EUR 458.6 million). In Group-level reporting, own-developed residential projects are only recognized as income upon handover. The timing of completion of own-developed projects affects the Group's revenue recognition, and therefore Group-level figures may fluctuate greatly between different quarters. In Construction Services Finland in July–September, the volume of completed own-developed apartments delivered to buyers was lower than in the comparison period, and the sales of business premises also decreased from the comparison period. In International Construction Services, tender-based revenue declined from the previous year.

After IFRS adjustments, consolidated operating profit in January–September decreased by 42% year-on-year to EUR 75.0 million (1-9/2012: EUR 129.1 million). After IFRS adjustments, the Group's operating profit margin for January–September was 6.0% (1-9/2012: 9.1%). Operating profit for July–September decreased by 74% year-on-year to EUR 11.7 million (7-9/2012: EUR 44.5 million). The operating profit margin for July–September was 3.2% (7-9/2012: 9.7%). Profitability was negatively impacted by revenue being substantially lower than in the comparison period. Furthermore, the operating profit in July–September 2012 was positively impacted by the release of a provision of EUR 7 million in International Construction Services.

Profit before taxes based on Group reporting decreased by 44% year-on-year to EUR 67.2 million (1-9/2012: EUR 119.1 million). Profit before taxes for July–September decreased by 79% year-on-year to EUR 8.8 million (7-9/2012: EUR 41.2 million).

The profit to the equity holders of the parent company for January–September based on Group reporting decreased by 44% year-on-year to EUR 52.5 million (1-9/2012: EUR 93.2 million). The profit for July–September decreased by 77% year-on-year to EUR 7.6 million (7-9/2012: EUR 32.6 million).

Earnings per share based on Group reporting decreased by 43% in January–September year-on-year to EUR 0.42 (1-9/2012: EUR 0.74). Earnings per share for the third quarter decreased by 77% year-on-year to EUR 0.06 (7-9/2012: EUR 0.26).

In January–September, the effective tax rate based on Group reporting was 22.0% (1-9/2012: 21.4%).

The order backlog based on Group reporting amounted to EUR 3,259.5 million at the end of September (9/2012: EUR 3,191.8 million).

Return on investment amounted to 9.8% for the last 12 months (7/2012-6/2013: 12.6%). At the end of September, the Group's invested capital amounted to EUR 1,584.3 million (6/2013: EUR 1,492.5 million). Invested capital is calculated by deducting non-interest bearing liabilities from the balance sheet total. The

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Group's balance sheet total at the end of September was EUR 2,540.0 million (6/2013: EUR 2,426.8 million).

Of the Group's invested capital, 34.7% (6/2013: 37.9%), or EUR 550.5 million (6/2013: EUR 565.9 million) was invested in Russia. The amount of capital invested in Russia decreased slightly compared to the end of June; the exchange rate changes of the ruble decreased the capital invested by EUR 12.6 million in July–September. Smaller project sizes, gradual building in projects, sales of apartments at an earlier construction phase, improved terms of payment and an increased share of mortgage deals all increased capital efficiency.

The equity ratio decreased compared to the end of June 2013 to 33.6% (6/2013: 34.9%).

Diverse capital structure and strong liquidity position

Cash and cash equivalents amounted to EUR 52.4 million at the end of September (6/2013: EUR 49.7 million). In addition, YIT had undrawn committed credit facilities amounting to EUR 280 million and undrawn overdraft facilities amounting to EUR 65.6 million. Of the credit facilities, EUR 30.0 million will fall due in December 2014 and EUR 250 million in December 2015. YIT also signed a new 3-year credit facility amounting to EUR 50.0 million in October. YIT Corporation's bank loan and credit facility agreements include a financial covenant linked to YIT's equity ratio, which took effect upon the registration of the demerger. The financial covenant requires an equity ratio higher than 25% and is based on the IFRS balance sheet.

The gearing ratio rose to 123.7% at the end of September (6/2013: 109.8%). Net interest-bearing debt increased and amounted to EUR 857.3 million at the end of September (6/2013: EUR 764.4 million).

Net financial expenses decreased in January–September compared to the previous year and amounted to EUR 7.7 million (1-9/2012: EUR 10.0 million), or 0.6% (1-9/2012: 0.7%) of the Group's revenue. The decrease in net financial expenses was due to an increase in the fair value of interest rate derivatives outside hedge accounting and increased capitalization of interest expenses. In total, EUR 13.6 million of capitalizations of interest expenses in compliance with IAS 23 (1-9/2012: EUR 12.6 million) have been taken into account in the net financial expenses. The exchange rate differences included in the net financial expenses, totaling EUR 3.7 million (1-9/2012: EUR 3.8 million), were comprised almost entirely of the costs of hedging debt capital investments in Russia.

The hedged ruble exposure decreased slightly from the end of June 2013. At the end of September 2013, EUR 121.3 million of the capital invested in Russia was comprised of debt investments (6/2013: EUR 131.9 million) and EUR 429.3 million was equity investments or similar fixed net investments (6/2013: EUR 434.0 million). In accordance with YIT's hedging policy, the debt investments are hedged against exchange rate risk, while equity investments are not hedged due to their permanent nature.

YIT's financing consists of diverse sources of financing. Borrowings increased and amounted to EUR 909.7 million at the end of September (6/2013: EUR 814.1 million), and the average interest rate was 2.7% (6/2013: 2.9%). Fixed-rate loans accounted for approximately 60% of the Group's borrowings. Of the loans, approximately 53% had been raised directly from the capital and money markets, approximately 35% from banks and other financial institutions and approximately 12% from insurance companies. The maturity distribution of long-term loans was balanced and a total of EUR 15.3 million of long-term loans will mature in 2013.

The total amount of construction-stage contract receivables sold to financial institutions increased from the end of June 2013, amounting to EUR 236.2 million at the end of September (6/2013: EUR 222.8 million). Of this amount, EUR 191.4 million is included in current borrowings on the balance sheet (6/2013: EUR 182.6 million) and the remainder comprises off-balance sheet items in accordance with IAS 39. Interest expenses on receivables sold to financial companies amounted to EUR 2.3 million during the review period (1-9/2012: EUR 3.5 million) and these are fully included in the financial expenses.

Participations in the housing corporation loans of unsold completed amounted to EUR 95.1 million at the end of September (6/2013: EUR 93.3 million), and they are included in current borrowings. The interest on the participation is included in housing corporation charges and is thus booked in project expenses. Interest on the participation amounted to EUR 2.0 million in the review period (1-9/2012: EUR 1.6 million).

During the first quarter, YIT Corporation paid dividends of EUR 94.0 million for 2012 in compliance with the resolution of the Annual General Meeting.

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The Group's financial position enables the implementation of YIT's strategy and the investments it requires. The Group has prepared for macroeconomic uncertainty by diversifying the sources of financing and maintaining a strong liquidity position.

Prior to completion of the partial demerger, YIT signed loan agreements related to the partial demerger, carried out a voluntary tender offer for the company's floating rate bonds and changed the terms of two fixed rate bonds in noteholders' meetings. More information on the aforementioned arrangements is available in the Investors section of the YIT website at www.yitgroup.com/demerger and in YIT's interim report for January–June 2013.

Personnel

Personnel by business segment	9/13	6/13	Change	9/13	9/12	Change	12/12
Construction Services Finland	3,354	3,767	-11%	3,354	3,635	-8%	3,540
International Construction Services	2,682	2,829	-5%	2,682	2,782	-4%	2,808
Corporate Services	348	308	13%	348	339	3%	343
Group, total	6,384	6,904	-8%	6,384	6,756	-6%	6,691
Personnel by country	9/13	6/13	Change	9/13	9/12	Change	12/12
---	---	---	---	---	---	---	---
Finland	3,702	3,979	-7%	3,702	4,012	-8%	3,917
Russia	1,993	2,124	-6%	1,993	2,082	-4%	2,087
The Baltic countries, the Czech Republic and Slovakia	689	801	-14%	689	662	4%	687
Group, total	6,384	6,904	-8%	6,384	6,756	-6%	6,691

In January–September, the Group employed 6,624 people on average (1-9/2012: 6,727). At the end of September, the Group employed 6,384 people (9/2012: 6,756). The personnel expenses for January–September amounted to a total of EUR 215.0 million (1-9/2012: EUR 219.5 million). During the review period YIT hired approximately 640 trainees. In January–September, work safety improved compared to the comparison period. The Group's accident frequency (number of accidents per one million hours worked) was 11.0 (1-9/2012: 14.7).

The cost effect of YIT's share-based incentive scheme was approximately EUR 1.8 million in January–September 2013 (1-9/2012: EUR 2.4 million).

Mission, vision and values

In September, YIT announced the new mission, vision, values and management principles for the new YIT established after the demerger. During the past year, over 500 employees contributed to the development of the values and management principles.

YIT's mission, 'Creating better living environments' and vision, 'One step ahead. With care.' illustrate YIT's desire to be a forerunner in the industry, a leading player in the market and a company that is differentiated from its competitors by caring for its customers, partners and personnel. The values, 'Care, One step ahead, Cooperation and Performance' are the foundation for achieving the objectives outlined in YIT's strategy, which was published in June. In order to put the values and management principles into practice among all employees, they will be discussed in all countries, business units and worksites during the rest of the year.

Strategic objectives

YIT Corporation's Board of Directors confirmed the strategy and financial objectives of YIT's continuing operations for 2014–2016 on June 3, 2013. YIT's strategic objective is well-managed, profitable growth. This is pursued through the company's own development projects in all business areas (Housing, Business Premises, Infra Services) and in all current geographical regions (Finland, Russia, the Baltic countries and Central Eastern Europe). In particular, growth is pursued in emerging markets and residential construction. Other focal points include improving resistance to economic cycles and widening financial operating space as well as accelerating reform. The Group's long-term strategic target levels are: average annual revenue growth of more than 10%, return on investment of 20%, operating cash flow after investments sufficient for

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dividend payout and debt reduction, equity ratio of 40% and dividend payout of 40-60% of net profit for the period. The target levels are based on figures reported by the company on the basis of the percentage of completion in accordance with the current emphasis. When determining the target levels, the assumption was made that economic growth in YIT's markets will continue.

YIT published a stock exchange release on the confirmation of the strategy on June 4, 2013. YIT's strategy and long-term financial targets were also described in more detail at YIT's Capital Markets Day, which was arranged on September 19, 2013, in Moscow. The presentation materials and recordings from the Capital Markets Day are available in the Investors section of YIT's website, at www.yitgroup.com/Investors.

Resolutions passed at General Meetings

YIT Corporation published stock exchange releases on the resolutions passed at the Annual General Meeting and the organization of the Board of Directors on March 15, 2013.

YIT Corporation's Extraordinary General Meeting held on June 17, 2013, approved the demerger plan and decided on the partial demerger of YIT in accordance with the demerger plan. According to the demerger plan, YIT demerged so that all of the assets and liabilities related to YIT's Building Services business were transferred to Caverion, a new company established in the demerger. YIT's Construction Services business remained with YIT. Following the implementation of the demerger, Caverion Corporation is an independent public limited company, separate from YIT Corporation. The registration date of the implementation of the demerger was June 30, 2013. YIT Corporation published stock exchange releases on the resolutions passed at the Extraordinary General Meeting and the organisation of the Board of Directors on June 17, 2013.

The stock exchange releases and the presentation of the members of the Board of Directors are available at YIT's website: www.yitgroup.com.

YIT Corporation's demerger registered with the Finnish Trade Register

The implementation of the partial demerger was registered with the Finnish Trade Register on June 30, 2013. YIT's shareholders have received as demerger consideration one (1) share in Caverion for each share owned in YIT. No demerger consideration was distributed to any treasury shares held by YIT. The number of shares given as demerger consideration was 125,596,092. The implementation of the demerger does not affect the listing of YIT shares on NASDAQ OMX Helsinki Ltd.

In a stock exchange release published on August 16, 2013, YIT announced that the original acquisition cost of YIT shares in Finnish taxation is divided between YIT and Caverion shares based on the ratio of net assets. In dividing YIT's net assets between YIT and Caverion in the partial demerger, 77.37% remained with YIT and 22.63% was transferred to Caverion.

Demerger-related information is available in the Investors section of YIT's website at www.yitgroup.com/demerger.

Shares and shareholders

The company has one series of shares. Each share carries one vote and confers an equal right to a dividend.

Share capital and number of shares

YIT Corporation's share capital and the number of shares outstanding did not change during the review period. YIT Corporation's share capital was EUR 149,216,748.22 at the beginning of 2013 (2012: EUR 149,216,748.22), and the number of shares outstanding was 127,223,422 (2012: 127,223,422).

Treasury shares and authorisations of the Board of Directors

In accordance with the Limited Liability Companies Act, the Annual General Meeting decides on the buyback and conveyance of shares, as well as any decisions leading to changes in the share capital. The Annual General Meeting of YIT Corporation resolved on March 15, 2013, to authorise the Board of Directors to purchase the company's shares as proposed by the Board of Directors. In addition to this, the Board

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of Directors maintains a valid share issue authorisation issued by YIT's Annual General Meeting on March 10, 2010. The authorisation is valid for five years after its granting. The share issue authorisation also includes an authorisation to decide on the conveyance of treasury shares.

YIT Corporation held 1,843,303 treasury shares at the beginning of the review period purchased on the basis of the authorisation given by the General Meeting of October 6, 2008. During the review period, the company conveyed 224,743 shares without consideration to the key persons participating in the Share Ownership Plan under the authorisation granted by the Annual General Meeting to the Board of Directors on March 10, 2010. During the review period, 5,095 shares were returned to the company in accordance with the terms and conditions of the share-based incentive scheme, after which the company held 1,632,425 treasury shares at the end of September 2013.

Trading on shares

The price of YIT's share was EUR 15.08 at the beginning of the year (January 1, 2012: EUR 12.38). The closing price of the share on the last trading day of the review period on September 30, 2013, was EUR 10.29 (September 30, 2012: EUR 14.93). The share price decreased by approximately 32% during January–September. The highest price of the share during January–September 2013 was EUR 17.88 (1-9/2012: EUR 17.25), while the lowest was EUR 10.00 (1-9/2012: EUR 11.87) and the average price was EUR 14.11 (1-9/2012: EUR 14.90). The turnover of the YIT share on Nasdaq OMX Helsinki in January–September amounted to 78,881,000 shares (1-9/2012: 81,078,000). The value of the share turnover was EUR 1,092.5 million (1-9/2012: EUR 1,208.7 million), source: Nasdaq OMX.

In addition to the Helsinki Stock Exchange, YIT's shares are also traded in other marketplaces, such as Chi-X, BATS and Turquoise. The share of trade volume on alternative marketplaces during the review period increased slightly compared to the previous year. During January–September, 56,681,000 YIT Corporation shares changed hands in alternative marketplaces (1-9/2012: 46,832,000), corresponding to approximately 42% of the total volume of YIT shares traded (1-9/2012: 37%). Of the alternative marketplaces, YIT shares changed hands particularly in Chi-X, source: Fidessa Fragmentation Index.

YIT Corporation's market capitalisation on the last trading day of the review period on September 30, 2013, was EUR 1,292.3 million (9/2012: EUR 1,872.0 million). Market capitalisation has been calculated excluding the shares held by the company. Caverion Corporation, which was established in the partial demerger, was included in the YIT share and its value until June 30, 2013. For this reason, pre-demerger figures are not comparable to the figures after the demerger.

Number of shareholders and flagging notifications

At the end of September 2013, the number of registered shareholders was 42,402 (9/2012: 35,258). At the end of September 2013, a total of 33.6% of the shares were owned by nominee-registered and non-Finnish investors (9/2012: 32.9%).

During the review period, the company received no flagging notifications of change in ownership in YIT Corporation in accordance with Chapter 2, section 9 of the Finnish Securities Markets Act.

Most significant short-term business risks and risk management

YIT classifies as risks those factors that might endanger the achievement of the Group's strategic and financial targets if they should materialise. Risks are divided into strategic, operational, financial and event risks. The identification and management of risk factors takes into account the special features of the business and operating environment. Risk management is an integral part of the Group's management, monitoring and reporting systems. The nature and probability of strategic risks is continuously monitored and reported on. A strategic risk assessment is carried out at Group level once a year in connection with the strategy review.

In accordance with the strategy of the continuing operations approved by the Group on June 3, 2013, improving resistance to economic cycles and widening financial operating space are key targets of YIT's business operations. In connection with the ratification of the strategy, risk management was highlighted as one of the key focus areas over the next years.

YIT is developing the Group's business structure to be balanced and resistant to economic fluctuations. The Group operates in seven countries and therefore economic fluctuations impact operations at different

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times in different countries and markets. However, following the partial demerger, the geographical diversification has decreased. The business model has also been developed so that the Construction Services business can operate independently after the demerger. The Group's three business areas; Housing, Business Premises and Infra Services, balance each other and improve the Group's resistance to economic fluctuations. Fluctuation in consumer demand for housing in Finland can be balanced through investor deals of residential projects, which contributes to decreasing the Group's exposure to fluctuations in the housing market. The company aims to react to changes in the operating environment in time and to utilise the new business opportunities provided by them through continuous monitoring and analysis.

YIT's typical operational risks include risks related to plot investments, sales risk of own-developed residential and business premises projects and risks related to contract tenders, project management and personnel. YIT manages sales risk by matching the number of housing start-ups with the estimated residential demand and the number of unsold apartments (the figures for residential production are presented under Development by business segment) and by generally securing key tenants and/or the investor prior to starting a business premises project. Changes in the availability of mortgages and real estate financing are key risks related to the demand for apartments.

No write-offs were made to plots in the review period. YIT tests the value of its plots as required by IFRS accounting principles. Plot reserves are measured at acquisition cost and the plot value is impaired when it is estimated that the building being constructed on the plot will be sold at a price lower than the sum of the price of the plot and the construction costs.

Financial risks include risks related to the sufficiency of financing, currency and interest rates, credit and counterparty risks and risks related to the reporting process. Financial risks are managed through accounting and financing policies as well as internal and external auditing.

Approximately 75% of the revenue of YIT during the review period was derived from euro countries. The Russian ruble is one of the Group's key currencies, and its significance has increased following the demerger. The Group's most significant currency risk is related to investments denominated in rubles. Capital invested in Russia totalled EUR 550.5 million at the end of the review period (6/2013: EUR 565.9 million). The amount of equity or equivalent net investments at the end of the period came to EUR 429.3 million (6/2013: EUR 434.0 million). The equity investments in the Russian subsidiaries are unhedged in accordance with the treasury policy, and a potential weakening of the ruble would have an equal negative impact on the Group's shareholders' equity. Debt investments amounted to EUR 121.3 million at the end of the review period (6/2013: EUR 131.9 million), and this exposure was hedged in full. The differences in the interest rates between the euro and ruble have an effect on hedging costs and therefore net financial expenses.

Possible event risks include accidents related to personal or information security as well as sudden and unforeseen material damage to premises, project sites and other property resulting, for example, from fire, collapse or theft. YIT complies with a group-wide security policy covering the different areas of security. A more detailed account of YIT's risk management policy and the most significant risks has been published in the Annual Report 2012. Financing risks are described in more detail in the notes to the Financial Statements for 2012.

Outlook for 2013

GUIDANCE: The Group's revenue and operating profit based on segment reporting for 2013 will decrease from the level of 2012, excluding non-recurring items.

Continuing uncertainty over the general macroeconomic development impacts YIT's business operations and customers.

In Finland, a plan to reduce the corporate tax rate from 24.5% to 20% as of January 1, 2014 has been presented. The decrease would cause a one-time negative effect of less than EUR 4 million (POC) due to decrease in deferred tax assets, that would be booked in the fourth quarter of 2013.

Construction Services Finland

With regard to Construction Services Finland, long-term residential demand continues to be supported by migration to growth centres. Furthermore, the population and the number of households will increase with

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continued migration and the increasing number of one-person households. However, the short-term risks of the housing market have increased due to macroeconomic uncertainty.

According to an estimate by the Confederation of Finnish Construction Industries RT published in October 2013, construction will begin on 27,000 residential units in Finland in 2013. According to a report published by VTT Technical Research Centre of Finland in January 2012, the annual need for the production of new residential units amounts to 24,000-29,000 residential units over the long term. YIT's goal is to strengthen its position as the leading residential developer in Finland.

YIT estimates that housing prices will remain stable in 2013. Construction costs are estimated to increase, mainly due to new energy regulations, but the increase is expected to be moderate in 2013.

With regard to the construction of business premises, real estate investors are still cautious due to the general economic situation, and in order to control risks the Helsinki metropolitan area and good tenants are appreciated. The low level of long-term interest rates increases investors' interest in high-yield properties. According to RT's October 2013 estimate, construction of office buildings will decrease by approximately 30% in Finland during 2013. Vacancy rates for offices are still high, with vacant building stock also including relatively old office premises in poor condition. YIT estimates that the demand will focus on modern and energy-efficient offices. YIT estimates that the renovation of business premises will grow in 2013.

According to RT's October 2013 estimate, commercial construction will decrease by approximately 12% in Finland during 2013. The shift of the retail trade towards ever larger business properties and the expansion of foreign retail chains in Finland will support construction activity. Vacancy rates for commercial premises are quite low.

The infrastructure construction market is expected to remain stable and at the same level as in 2012 (VTT Technical Research Centre of Finland, September 2013). Rail and metro construction will continue to increase in 2013, and several major route projects will be underway in 2013-2014. The market situation for rock construction is expected to remain favourable, with the focus shifting from excavation to interiors and engineering. The road maintenance market is estimated to remain stable.

International Construction Services

The volume of residential construction is estimated to increase in Russia in 2013. However, growth is expected to slow down slightly compared to the previous year.

Moscow, the Moscow Oblast and St. Petersburg make up the largest residential markets in Russia: these areas account for approximately one-fifth of all residential construction. Residential demand has been supported by the reasonably good economic development in Russia, good consumer confidence, low unemployment rates and favourable development in the mortgage market. Moreover, the increase in the interest rates on mortgages has leveled off in recent times. Forecasts of economic growth in Russia have been lowered recently. In addition, the price of oil, which is a key factor for the development of the Russian economy, and the exchange rate between the euro and ruble have recently fluctuated more strongly than before.

The future outlook for Russian residential construction is good. Living space per person is still clearly lower than in Western Europe and housing is in poor condition, which creates the need for new, high-quality housing. Furthermore, the middle class is expected to grow in proportion to the population and the number of household-dwelling units is expected to increase. The development of the mortgage market in Russia has also contributed to the expansion of the potential buyer base. YIT has promoted the availability of loans to consumers through extensive cooperation with banks. YIT expects housing prices in Russia to remain stable in 2013.

The volume of business premises construction is expected to grow moderately in 2013 according to statistics published by VTT Technical Research Centre of Finland. YIT's largest individual market is St. Petersburg, where YIT will continue the marketing and sales of the Gorelovo industrial park.

In the Baltic countries, residential demand has still been supported by improved consumer confidence and the employment situation as well as accelerated economic growth. Furthermore, the poor condition of residential buildings creates a need for new high-quality residential units. Latvia joining the euro is expected to strengthen the country's economic development. Housing prices have also increased slightly. Residential construction is expected to remain at the level of the previous year in the Czech Republic and Slovakia in

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Economic growth in the Czech Republic has stagnated and the country has increased the value added tax on housing sales as of the beginning of 2013. In addition, political uncertainty in the country has had a negative effect on consumer confidence and housing demand. In Slovakia, the housing market is supported by the stable price level of housing, moderate economic growth and interest rates remaining low. Growing unemployment is a risk.

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INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2013: TABLES

The information presented in the Interim Report has not been audited.

1 SEGMENT REPORTING

1.1 Segment reporting accounting principles
1.2 Key figures, segment reporting
1.3 Revenue, segment reporting
1.4 Operating profit and profit for the review period, segment reporting
1.5 Order backlog, segment reporting
1.6 YIT Group figures by quarter, segment reporting
1.7 Segment information by quarter, segment reporting
1.8 Reconciliation of the segment reporting and the group reporting

2 GROUP REPORTING, IFRS

2.1 Key figures, IFRS
2.2 YIT Group figures by quarter, IFRS
2.3 Consolidated income statement Jan 1 – Sep 30, 2013, IFRS
2.4 Statement of comprehensive income Jan 1 – Sep 30, 2013, IFRS
2.5 Consolidated income statement Jul 1 – Sep 30, 2013, IFRS
2.6 Consolidated balance sheet, IFRS
2.7 Consolidated statement of changes in equity
2.8 Consolidated cash flow statement
2.9 Accounting principles of the interim report
2.10 Definitions of key financial figures
2.11 Financial risk management
2.12 Unusual items affecting operating profit
2.13 Business combinations and disposals
2.14 Discontinued operations
2.15 Changes in property, plant and equipment
2.16 Inventories
2.17 Notes on equity
2.18 Borrowings and fair values
2.19 Change in contingent liabilities and assets and commitments
2.20 Transactions with associated companies

3 NON-IFRS BALANCE SHEET AND KEY FIGURES

1 SEGMENT REPORTING

1.1 Segment reporting accounting principles

In Construction Services Finland segment's and International Construction Services segment's reporting to the management the revenue from own residential and commercial development projects is recognised by multiplying the degree of completion and the degree of sale, i.e. according to the percentage of completion method, which does not fully comply with Group's IFRS accounting principles. According to the Group's IFRS accounting principles revenue from own residential construction projects is recognised on completion and the commercial development projects the recognition practice will be evaluated on a case-by-case basis and in accordance with the terms and conditions of each contract. The share of income and expenses to be recognised is calculated by multiplying the percentage of completion by the percentage of sale multiplied by the occupancy rate. YIT usually sells own commercial development projects to investors either prior to construction or during an early phase. The impact of the difference in reporting principles is shown in the line IFRS adjustment. As a result of the accounting policy, Group figures can fluctuate greatly between quarters. The chief operating decision-maker is the YIT Group's Management Board, which reviews the Group's internal reporting in order to assess performance and allocate resources to the segments.

On January 1, 2013, the Group adopted a new recording method in segment reporting, according to which the capitalisation of borrowing costs according to the IAS 23 is not applied in segment reporting. IAS 23 defines the recording method of borrowing costs in long-term construction projects. The comparison figures have been adjusted to correspond with the new accounting practice. The change increased the operating profit based on segment reporting by EUR 13.6 million in 1-12/2012, EUR 9.2 million in 1-9/2012, EUR 5.9 million in 1-6/2012 and EUR 2.9 million in 1-3/2012.

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1.2 Key figures, segment reporting

EUR million	1-9/13	1-9/12	Change	12/12
Continuing operations
Revenue	1,337.6	1,403.6	-5%	1,959.0
Operating profit	111.6	133.1	-16%	201.1
% of revenue	8.3	9.5		10.3
Profit before taxes	90.3	110.5	-18%	169.6
Profit for the report period 1)	69.6	86.9	-20%	130.7

Discontinued operations
Profit for the report period 1)	288.4	36.1	699%	37.4

Continuing and discontinued operations, total
Profit for the report period 1)	357.9	123.0	191%	168.1

Reconciliation with IFRS reporting
IFRS adjustment	-17.1	6.3		10.6
Profit for the report period, IFRS 1)
- continuing operations	52.5	93.2	-44%	141.2
- discontinued operations	288.4	36.1	699%	37.4
- continuing and discontinued operations total	340.9	129.4	163%	178.6

1) Attributable to equity holders of the parent company

Key figures, segment reporting	1-9/13	1-9/12	Change	1-12/12
Earnings/share, EUR
- continuing operations	0.55	0.69	-20%	1.04
- discontinued operations	2.30	0.29	693%	0.30
- continuing and discontinued operations total	2.85	0.98	191%	1.34
Earnings/share, EUR, diluted
- continuing operations	0.55	0.69	-20%	1.04
- discontinued operations	2.30	0.29	693%	0.30
- continuing and discontinued operations total	2.85	0.98	191%	1.34
Average number of personnel	6,624	6,727	-2%	6,730
	9/13	9/12	Change	12/12
Equity/share, EUR	6.10	5.65	8%	6.53
Return on investment, last 12 months, %	12.3			15.0
Equity ratio, %	37.0	37.9	-2%	43.1
Order backlog at end of period, EUR million	2,813.4	2,748.4	2%	2,765.1

The balance sheet-based key figures presented in the table have been calculated on the basis of the balance sheet according to segment reporting. The comparison periods exclude the assets and liabilities related to YIT's Building Services business, which were transferred to Caverion Group in the partial demerger that took place on June 30, 2013.

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1.3 Revenue, segment reporting

EUR million	1-9/13	1-9/12	Change	1-12/12
Continuing operations
Construction Services Finland	892.7	986.4	-9%	1,329.0
– Group internal	-0.7	-0.8		-1.1
– external	892.2	985.6	-9%	1,328.0
International Construction Services	429.0	394.6	9%	599.6
– Group internal	0.0	-0.1		-0.2
– external	428.8	394.5	9%	599.4
Other items	16.6	23.5		31.6
Revenue in total, segment reporting	1,337.6	1,403.6	-5%	1,959.0
IFRS adjustment	-91.9	22.8		29.9
Revenue in total, IFRS	1,245.7	1,426.4	-13%	1,988.9

1.4 Operating profit and Profit for the review period, segment reporting

EUR million	1-9/13	1-9/12	Change	1-12/12
Continuing operations
Construction Services Finland	71.6	93.8	-24%	134.1
International Construction Services	49.8	49.5	1%	80.4
Other items	-9.8	-10.2		-13.4
Operating profit total, segment reporting	111.6	133.1	-16%	201.1
Financial income and expenses	-21.3	-22.6	-6%	-31.5
Profit before taxes, segment reporting	90.3	110.5	-18%	169.6
Taxes	-20.7	-23.1	-10%	-37.9
Non-controlling interest	0.0	-0.5	-102%	-0.9
Profit for the review period, segment reporting	69.6	86.9	-20%	130.7
IFRS adjustment	-17.1	6.3		10.6
Profit for the review period, IFRS	52.5	93.2	-44%	141.2

Operating profit margin, segment reporting

%	1-9/13	1-9/12	1-12/12
Continuing operations
Construction Services Finland	8.0	9.5	10.1
International Construction Services	11.6	12.5	13.4
Operating profit margin, segment reporting	8.3	9.5	10.3

1.5 Order backlog, segment reporting

EUR million	9/13	9/12	Change	12/12
Continuing operations
Construction Services Finland	1,555.1	1,541.0	1%	1,499.0
International Construction Services	1,258.3	1,207.4	4%	1,266.1
Order backlog total, segment reporting	2,813.4	2,748.4	2%	2,765.1
IFRS adjustment	446.1	443.4		343.5
Order backlog total, IFRS	3,259.5	3,191.8	2%	3,108.6

1.6 YIT Group figures by quarter, segment reporting

EUR million	7-9/13	4-6/13	1-3/13	10-12/12	7-9/12	4-6/12	1-3/12
Continuing operations
Revenue	454.7	430.9	452.0	555.4	470.3	488.9	444.4
Operating profit	37.4	38.3	35.9	68.0	52.5	43.4	37.2
% of revenue	8.2	8.9	7.9	12.2	11.2	8.9	8.4
Profit before taxes	29.9	29.8	30.6	59.1	44.6	35.7	30.2
Profit for the report period 1)	23.1	23.0	23.4	43.8	35.1	28.9	22.9

Discontinued operations
Profit for the report period 1)		286.2	2.2	1.3	13.5	11.7	11.0

Continuing and discontinued operations, total
Profit for the report period 1),	23.1	309.2	25.6	45.0	48.6	40.6	33.9

1) Attributable to equity holders of the parent company

Key figures, segment reporting	7-9/13	4-6/13	1-3/13	10-12/12	7-9/12	4-6/12	1-3/12
Earnings/share, EUR
- continuing operations	0.18	0.18	0.19	0.35	0.28	0.23	0.18
- discontinued operations		2.29	0.01	0.01	0.11	0.09	0.09
- continuing and discontinued operations total	0.18	2.47	0.20	0.36	0.39	0.32	0.27
Earnings/share, EUR, diluted
- continuing operations	0.18	0.18	0.19	0.35	0.28	0.23	0.18
- discontinued operations		2.29	0.01	0.01	0.11	0.09	0.09
- continuing and discontinued operations, total	0.18	2.47	0.20	0.36	0.39	0.32	0.27
Average number of personnel	6,682	6,756	6,658	6,741	6,860	6,813	6,508
	9/13	6/13	3/13	12/12	9/12	6/12	3/12
Equity/share, EUR	6.10	6.01	6.23	6.53	5.65	5.37	5.21
Return on investment, last 12 months, %	12.3	13.9	15.0	15.0
Invested capital	1,592.8	1,492.5	1,443.4	1,440.6	1,384.9	1,328.8	1,269.2
Equity ratio, %	37.0	38.5	40.7	43.1	37.9	37.0	35.9
Order backlog at end of period, EUR million	2,813.4	2,810.8	2,710.2	2,765.1	2,748.4	2,686.6	2,570.9
Personnel at the end of period	6,384	6,904	6,689	6,691	6,756	7,001	6,505

1.7. Segment information by quarter, segment reporting

Revenue by segment, continuing operations

EUR million	7-9/13	4-6/13	1-3/13	10-12/12	7-9/12	4-6/12	1-3/12
Construction Services Finland	287.5	279.2	326.0	342.6	308.9	347.9	329.5
International Construction Services	164.3	145.7	119.0	205.0	153.3	133.4	107.9
Other items	2.9	6.0	7.0	7.8	8.1	7.6	7.0
Revenue in total, segment reporting	454.7	430.9	452.0	555.4	470.3	488.9	444.4

Operating profit by segment, continuing operations

EUR million	7-9/13	4-6/13	1-3/13	10-12/12	7-9/12	4-6/12	1-3/12
Construction Services Finland	22.2	22.9	26.5	40.2	28.9	33.5	31.4
International Construction Services	20.5	17.6	11.6	31.0	25.7	14.1	9.7
Other items	-5.4	-2.2	-2.2	-3.2	-2.1	-4.2	-3.9
Operating profit total, segment reporting	37.4	38.3	35.9	68.0	52.5	43.4	37.2

Operating profit margin by segment, continuing operations

%	7-9/13	4-6/13	1-3/13	10-12/12	7-9/12	4-6/12	1-3/12
Construction Services Finland	7.7	8.2	8.1	11.7	9.3	9.6	9.5
International Construction Services	12.5	12.1	9.8	15.1	16.7	10.6	9.0

Order backlog by segment, continuing operations

EUR million	7-9/13	6/13	3/13	12/12	9/12	6/12	3/12
Construction Services Finland	1,555.1	1,584.0	1,424.9	1,499.0	1,541.0	1,499.9	1,428.0
International Construction Services	1,258.3	1,226.8	1,285.3	1,266.1	1,207.4	1,186.7	1,142.9
Order backlog total, segment reporting	2,813.4	2,810.8	2,710.2	2,765.1	2,748.4	2,686.6	2,570.9

Operative invested capital, continuing operations *)

EUR million	7-9/13	6/13	3/13	12/12	9/12	6/12	3/12
Construction Services Finland	730.7	649.5	584.2	581.7	546.8	515.3	552.1
International Construction Services	729.1	709.4	718.7	708.3	703.8	655.7	651.8

Return on operative invested capital, continuing operations *)

Last 12 months, %	7-9/13	6/13	3/13	12/12	9/12	6/12	3/12
Construction Services Finland	17.5	20.4	22.7	23.5	24.3	25.0	24.6
International Construction Services	11.3	12.6	12.0	12.3	10.5	6.5	6.1

*) Only operational items are taken into account in calculating the segments' invested capital.

1.8 Reconciliation of the segment reporting and the group reporting

	1-9/2013			1-9/2012			1-12/2012
Income statement, EUR million	Segment reporting	IFRS adjustment	IFRS	Segment reporting	IFRS adjustment	IFRS	Segment reporting	IFRS adjustment	IFRS
Continuing operations
Revenue	1,337.6	-91.9	1,245.7	1,403.6	22.8	1,426.4	1,959.0	29.9	1,988.9
Other operating income and expenses	-1,211.4	55.3	-1,156.0	-1,254.9	-26.8	-1,281.7	-1,737.3	-33.0	-1,770.3
Depreciation	-14.7	0.0	-14.7	-15.6		-15.6	-20.6		-20.6
Operating profit	111.6	-36.6	75.0	133.1	-4.0	129.1	201.1	-3.1	198.0
Financial income and expenses	-21.3	13.6	-7.7	-22.6	12.6	-10.0	-31.7	17.4	-14.2
Profit before taxes	90.3	-23.0	67.2	110.5	8.6	119.1	169.6	14.3	183.8
Income taxes	-20.7	5.9	-14.8	-23.1	-2.4	-25.5	-37.9	-3.5	-41.5
Profit for the review period	69.5	-17.1	52.5	87.4	6.2	93.6	131.7	10.8	142.3
Equity holders of the parent company	69.6	-17.1	52.5	86.9	6.3	93.2	130.7	10.6	141.2
Non-controlling interest	0.0	0.0	0.0	0.5	-0.1	0.4	0.9	0.2	1.1

Earnings/share, EUR	0.55		0.42	0.69		0.74	1.04		1.13
Diluted earnings/share, EUR	0.55		0.42	0.69		0.74	1.04		1.13
	7-9/2013			7-9/2012
---	---	---	---	---	---	---
Income statement, EUR million	Segment reporting	IFRS adjustment	IFRS	Segment reporting	IFRS adjustment	IFRS
Continuing operations
Revenue	454.7	-91.7	363.0	470.3	-11.7	458.6
Other operating income and expenses	-413.1	66.1	-347.1	-412.3	3.6	-408.7
Depreciation	-4.2	0.0	-4.2	-5.4		-5.4
Operating profit	37.4	-25.7	11.7	52.5	-8.1	44.5
Financial income and expenses	-7.5	4.6	-2.9	-7.9	4.7	-3.3
Profit before taxes	29.9	-21.1	8.8	44.6	-3.4	41.2
Income taxes	-6.8	5.6	-1.2	-9.1	0.9	-8.3
Profit for the review period	23.1	-15.5	7.6	35.5	-2.5	32.9
Equity holders of the parent company	23.1	-15.5	7.6	35.1	-2.5	32.6
Non-controlling interest	0.0	0.0	0.0	0.4	-0.1	0.3

Earnings/share, EUR	0.18		0.06	0.28		0.26
Diluted earnings/share, EUR	0.18		0.06	0.28		0.26

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	9/2013			9/2012			12/2012
Balance sheet, EUR million	Segment reporting	IFRS adjustment	IFRS	Segment reporting	IFRS adjustment	IFRS	Segment reporting	IFRS adjustment	IFRS
Non-current assets
Other non-current assets	87.6	0.0	87.6	528.8		528.8	529.2		529.2
Deferred tax assets	36.7	9.6	46.4	48.8	7.1	55.9	40.7	9.1	49.8

Current assets
Inventories	1,663.8	372.5	2,036.3	1,531.8	326.7	1,858.5	1,579.3	322.1	1,901.5
Trade and other receivables	374.8	-57.5	317.3	1,173.8	-55.7	1,118.2	1,082.3	-66.8	1,015.5
Cash and cash equivalents	52.4	0.0	52.4	150.0		150.0	175.7		175.7
Total assets	2,215.3	324.7	2,540.0	3 433.4	278.1	3,711.4	3,407.2	264.5	3,671.6

Equity	766.0	-72.8	693.2	1 025.4	-64.8	960.6	1,069.3	-60.1	1,009.2

Non-current liabilities
Borrowings	316.6	0.0	316.6	541.7		541.7	517.1		517.1
Other non-current liabilities	71.1	0.0	71.1	148.4		148.4	133.1		133.1
Deferred tax liabilities	22.8	-8.7	14.1	92.7	-10.0	82.6	96.9	-7.5	89.4

Current liabilities
Borrowings	510.1	82.9	593.1	367.0	68.7	435.6	332.9	72.0	404.9
Advances received	147.8	327.5	475.3	307.8	285.7	593.6	305.5	261.1	566.6
Other current liabilities	380.8	-4.2	376.6	950.4	-1.5	948.9	952.4	-1.1	951.3
Total equity and liabilities	2,215.3	324.7	2,540.0	3 433.4	278.1	3,711.4	3,407.2	264.5	3,671.6

The balance sheet for the comparison periods includes the assets and liabilities related to YIT's Building Services business, which were transferred to Caverion Group in the partial demerger on June 30, 2013.

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2 GROUP REPORTING, IFRS

2.1 Key figures, IFRS

	1-9/13	1-9/12	Change	1-12/12
Earnings/share, EUR
- continuing operations	0.42	0.74	-43%	1.13
- discontinued operations	2.30	0.29	693%	0.30
- continuing and discontinued operations total	2.72	1.03	164%	1.43
Earnings/share, EUR, diluted
- continuing operations	0.42	0.74	-43%	1.13
- discontinued operations	2.30	0.29	693%	0.30
- continuing and discontinued operations total	2.72	1.03	164%	1.43

Equity/share, EUR	5.52	7.64	-28%	8.02
Average share price during the period, EUR	14.11	14.90	-5%	14.90
Share price at end of period, EUR	10.29	14.93	-31%	14.78
Market capitalisation at end of period, MEUR	1,292.3	1,872.0	-31%	1,853.2
Weighted average share-issue adjusted number of shares outstanding, thousands	125,507	125,341	0%	125,352
Diluted weighted average share-issue adjusted number of shares outstanding, thousands	125,507	125,341	0%	125,352
Share-issue adjusted number of shares outstanding at end of period, thousands	125,591	125,386	0%	125,384
Net interest-bearing debt at end of period, EUR million	857.3	827.3	4%	746.2
Return on investment, last 12 months, %	8.3			10.9
Equity ratio, %	33.6	30.8	9%	32.5
Gearing ratio, %	123.7	86.1	44%	73.9
Gross capital expenditure, EUR million	14.8	34.3	-57%	44.6
% of revenue	1.2	1.0	19%	0.9
Unrecognised order backlog at end of period, EUR million	3,259.5	3,191.8	2%	3,108.6
of which order backlog outside Finland	1,548.5	1,513.2	2%	1,484.0
Average number of personnel	6,624	6,727	-2%	6,730

The balance sheet-based key figures presented in the table have been calculated on the basis of the official balance sheet for the comparison periods, the balance sheet includes the assets and liabilities related to YIT's Building Services business, which were transferred to Caverion Group in the partial demerger that took place on June 30, 2013. The key figures for the comparison periods do not yield a true image of the financial position and development of the continuing operations.

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2.2 YIT Group figures by quarter, IFRS

Continuing operations	7-9/13	4-6/13	1-3/13	10-12/12	7-9/12	4-6/12	1-3/12
Revenue, EUR million	363.0	437.1	445.6	562.5	458.6	523.3	444.5
Operating profit, EUR million	11.7	32.3	31.0	68.9	44.5	47.4	37.2
% of revenue	3.2	7.4	7.0	12.2	9.7	9.1	8.4
Financial income, EUR million	0.9	0.7	0.4	0.8	0.0	2.7	1.1
Exchange rate differences, EUR million	-1.4	-2.2	-0.1	-1.7	-1.4	-1.5	-0.9
Financial expenses, EUR million	-2.4	-2.6	-1.0	-3.3	-1.9	-4.6	-3.5
Profit before taxes, continuing operations, EUR million	8.8	28.2	30.3	64.7	41.2	44.0	33.9
% of revenue	2.4	6.4	6.8	11.5	9.0	8.4	7.6
Earnings/share, EUR
- continuing operations	0.06	0.18	0.18	0.38	0.26	0.28	0.20
- discontinued operations		2.28	0.02	0.02	0.11	0.09	0.09
- continuing and discontinued operations, total	0.06	2.46	0.20	0.39	0.37	0.37	0.29
Gross capital expenditure, EUR million	0.9	5.2	9.6	10.3	10.1	10.6	13.6
% of revenue	0.3	1.2	0.9	0.8	0.9	0.9	1.2

	9/13	6/13	3/13	12/12	9/12	6/12	3/12
Balance sheet total, EUR million	2,540.0	2,426.8	3,644.3	3,671.6	3,711.4	3,635.8	3,620.2
Equity/share, EUR	5.52	5.54	7.52	8.02	7.64	7.12	6.87
Share price at end of period, EUR	10.29	13.19	16.25	14.78	14.93	13.38	16.12
Market capitalisation at end of period, EUR million	1,292.3	1,656.6	2,037.4	1,853.2	1,872.0	1,677.7	2,019.3
Return on investment, last 12 months, %	8.3	10.7	10.5	10.9
Equity ratio, %	33.6	34.9	31.1	32.5	30.8	29.1	27.8
Net interest-bearing debt at end of period, EUR million	857.3	764.4	839.0	746.2	827.3	803.1	755.8
Gearing ratio, %	123.7	109.8	88.9	73.9	86.1	89.7	87.6
Unrecognised order backlog at end of period, EUR million	3,259.5	3,176.0	3,045.9	3,108.6	3,191.8	3,050.5	2,990.7
Personnel at the end of period	6,384	6,904	6,689	6,691	6,756	7,001	6,505

The balance sheet-based key figures presented in the table have been calculated on the basis of the official balance sheet for the comparison periods. The balance sheet includes the assets and liabilities related to YIT's Building Services business, which were transferred to Caverion Group in the partial demerger that took place on June 30, 2013. The key figures for the comparison periods do not yield a true image of the financial position and development of the continuing operations.

2.3 Consolidated income statement Jan 1 – Sep 30, 2013, IFRS

EUR million	1-9/13	1-9/12	Change	1-12/12
Continuing operations
Revenue	1,245.7	1,426.4	-13%	1,988.9
of which activities outside Finland	348.7	349.8	0%	586.4
Other operating income and expenses	-1,156.0	-1,281.8	-10%	-1,770.5
Share of results in associated companies	0.0	0.1	-101%	0.2
Depreciation and impairment	-14.7	-15.6	-6%	-20.6
Operating profit	75.0	129.1	-42%	198.0
% of revenue	6.0	9.1		10.0
Financial income	2.1	3.8	-45%	4.6
Exchange rate differences	-3.7	-3.8	-2%	-5.5
Financial expenses	-6.1	-10.0	-39%	-13.3
Profit before taxes	67.2	119.1	-44%	183.8
% of revenue	5.4	8.3		9.2
Income taxes 1)	-14.8	-25.5	-42%	-41.5
Profit for the review period	52.5	93.6	-44%	142.3
% of revenue	4.2	6.6		7.2
Equity holders of the parent company	52.5	93.2	-44%	141.2
Non-controlling interest	0.0	0.4	-98%	1.1

Discontinued operations
Profit for the review period	288.4	36.2	697%	37.5
Equity holders of the parent company	288.4	36.1	699%	37.4
Non-controlling interest		0.0		0.1

Continuing and discontinued operations, total
Profit for the review period	340.8	129.8	163%	179.8
Equity holders of the parent company	340.9	129.4	163%	178.6
Non-controlling interest		0.4		1.2

1) Taxes for the review period are based on the taxes for the whole financial year.

	1-9/13	1-9/12	Change	1-12/12
Earnings/share, EUR
- continuing operations	0.42	0.74	-43%	1.13
- discontinued operations	2.30	0.29	693%	0.30
- continuing and discontinued operations, total	2.72	1.03	164%	1.43
Earnings/share, EUR, diluted
- continuing operations	0.42	0.74	-43%	1.13
- discontinued operations	2.30	0.29	693%	0.30
- continuing and discontinued operations, total	2.72	1.03	164%	1.43

30 (51)

2.4 Statement of comprehensive income Jan 1 – Sep 30, 2013, IFRS

EUR million	1-9/13	1-9/12	Change	1-12/12
Continuing operations
Profit for the review period	52.5	93.6	-44%	142.3
Items that may be subsequently recognised through profit or loss:
Cash flow hedges	2.6	-0.4		0.6
- Deferred taxes	-1.6	0.1		-0.1
Change in translation differences	-36.7	15.6		13.5
Other comprehensive income, total	-35.7	15.3		14.1
Total comprehensive income	16.8	108.9	-85%	156.5
Equity holders of the parent company	16.8	108.5	-85%	155.4
Non-controlling interest	0.0	0.4	-102%	1.1

Discontinued operations
Total comprehensive income	288.4	51.4	461%	52.0
Equity holders of the parent company	288.4	51.3	462%	51.9
Non-controlling interest		0.1		0.1

Continuing and discontinued operations, total
Total comprehensive income	305.2	160.3	90%	208.5
Equity holders of the parent company	305.2	159.8	91%	207.3
Non-controlling interest	0.0	0.5	-102%	1.2

31 (51)

2.5 Consolidated income statement Jul 1 – Sep 30, 2013, IFRS

EUR million	7-9/13	7-9/12	Change
Continuing operations
Revenue	363.0	458.6	-21%
of which activities outside Finland	96.6	124.1	-22%
Other operating income and expenses	-347.1	-408.5	-15%
Share of results in associated companies	0.0	-0.2
Depreciation and impairment	-4.2	-5.4	-22%
Operating profit	11.7	44.5	-74%
% of revenue	3.2	9.7
Financial income	0.9	0.0
Exchange rate differences	-1.4	-1.4	3%
Financial expenses	-2.4	-1.9	28%
Profit before taxes	8.8	41.2	-79%
% of revenue	2.4	9.0
Income taxes 1)	-1.2	-8.3	-86%
Profit for the review period, continuing operations	7.6	32.9	-77%
% of revenue	2.1	7.2
Equity holders of the parent company	7.6	32.6	-77%
Non-controlling interest	0.0	0.3	-99%

Discontinued operations
Profit for the review period	0.0	13.5	-100%
Equity holders of the parent company	0.0	13.6	-100%
Non-controlling interest		-0.1

Continuing and discontinued operations, total
Profit for the review period	7.6	46.4	-84%
Equity holders of the parent company	7.6	46.2	-84%
Non-controlling interest	0.0	0.2	-98%

1) Taxes for the review period are based on the taxes for the whole financial year.

	7-9/13	7-9/12	Change
Earnings/share, EUR
- continuing operations	0.06	0.26	-77%
- discontinued operations		0.11
- continuing and discontinued operations, total	0.06	0.37	-84%
Earnings/share, EUR, diluted
- continuing operations	0.06	0.26	-77%
- discontinued operations	0.00	0.11	-100%
- continuing and discontinued operations, total	0.06	0.37	-84%

32 (51)

33 (51)

2.6 Consolidated balance sheet, IFRS

EUR million	9/13	9/12	Change	12/12
Assets

Non-current assets
Tangible assets	70.4	109.7	-36%	110.6
Goodwill	10.9	346.6	-97%	346.6
Other intangible assets	4.0	62.7	-94%	61.8
Shares in associated companies	0.4	0.4	11%	0.6
Other investments	0.9	3.1	-72%	3.4
Other receivables	1.0	6.4	-84%	6.3
Deferred tax receivables	46.4	55.9	-17%	49.8

Current assets
Inventories	2,036.3	1,858.5	10%	1,901.5
Trade and other receivables	317.3	1,118.2	-72%	1,015.5
Cash and cash equivalents	52.4	150.0	-65%	175.7

Total assets	2,540.0	3,711.4	-32%	3,671.6

Equity and liabilities

Equity attributable to equity holders of the parent company
Share capital	149.2	149.2	0%	149.2
Other equity	543.6	808.9	-33%	856.7

Non-controlling interest	0.4	2.5	-85%	3.3

Total equity	693.2	960.6	-28%	1,009.2

Non-current liabilities
Deferred tax liabilities	14.1	82.6	-83%	89.4
Pension obligations	0.7	55.5	-99%	52.4
Provisions	42.8	52.9	-19%	48.5
Borrowings	316.6	541.7	-42%	517.1
Other liabilities	27.7	40.0	-31%	32.6

Current liabilities
Advances received	475.3	593.6	-20%	566.6
Trade and other liabilities	355.4	892.9	-60%	896.1
Provisions	21.2	56.1	-62%	54.9
Current borrowings	593.1	435.6	36%	404.9

Total equity and liabilities	2,540.0	3,711.4	-32%	3,671.6

2.7 Consolidated statement of changes in equity, IFRS

EUR million	Equity attributable to equity holders of the parent company
	Share capital	Legal reserve	Other reserve	Cumulative translation difference	Fair value reserve	Treasury shares	Retained earnings	Total	Non-controlling interest	Total equity
Equity on January 1, 2012	149.2	1.9	2.8	-23.4	-3.6	-9.7	801.5	918.7	2.5	921.1
Defined benefit pension, re-measurement due to IAS 19 change							-37.0	-37.0		-37.0
Adjusted equity on January 1, 2012	149.2	1.9	2.8	-23.4	-3.6	-9.7	764.5	881.7	2.5	884.1
Comprehensive income
Profit for the review period							129.7	129.7	0.4	130.1
Profit for the period, re-measurement due to IAS 19 change							-0.3	-0.3		-0.3
Other comprehensive income:
Change in fair value of defined benefit pension, re-measurement due to IAS 19 change							14.1	14.1		14.1
- Deferred tax							-4.0	-4.0		-4.0
Cash flow hedges					-0.5			-0.5		-0.5
- Deferred tax					0.1			0.1		0.1
Change in fair value of available-for-sale assets					-0.7			-0.7		-0.7
- Deferred tax					0.2			0.2		0.2
Change in translation differences				21.3				21.3		21.3
Comprehensive income, total				21.3	-0.9		139.5	159.9	0.4	160.4
Transactions with owners
Dividend paid							-87.7	-87.7	-0.4	-88.1
Share incentive scheme			1.1			0.6	2.6	4.3		4.3
Transactions with owners, total			1.1			0.6	-85.1	-83.4	-0.4	-83.8
Equity on September 30, 2012	149.2	1.9	3.9	-2.1	-4.5	-9.2	818.9	958.3	2.5	960.6

34 (51)

	Equity attributable to equity holders of the parent company
EUR million	Share capital	Legal reserve	Other reserve	Cumulative translation difference	Fair value reserve	Treasury shares	Retained earnings	Total	Non-controlling interest	Total equity
Equity on January 1, 2012	149.2	1.9	2.8	-23.4	-3.6	-9.7	801.5	918.7	2.5	921.1
Defined benefit pension, re-measurement due to IAS 19 change							-37.0	-37.0		-37.0
Adjusted equity on January 1, 2012	149.2	1.9	2.8	-23.4	-3.6	-9.7	764.5	881.7	2.5	884.1
Comprehensive income
Profit for the review period							178.7	178.7	1.2	179.9
Profit for the period, re-measurement due to IAS 19 change							-0.1	-0.1		-0.1
Other comprehensive income:
Change in fair value of defined benefit pension, re-measurement due to IAS 19 change							15.3	15.3		15.3
- Deferred tax							-4.2	-4.2		-4.2
Cash flow hedges					0.6			0.6		0.6
- Deferred tax					-0.1			-0.1		-0.1
Change in fair value of available for sale investments					-0.4			-0.4		-0.4
- Deferred tax					0.1			0.1		0.1
Translation differences				17.4				17.4		17.4
Comprehensive income, total				17.4	0.2		189.7	207.3	1.2	208.5
Transactions with owners
Dividend distribution							-87.7	-87.7	-0.4	-88.1
Share-based incentive schemes			1.0			0.5	3.3	4.8		4.8
Transactions with owners, total			1.0			0.5	-84.4	-82.9	-0.4	-83.3
Equity on December 31, 2012	149.2	1.9	3.8	-6.1	-3.4	-9.2	869.8	1,005.9	3.3	1,009.2

EUR million	Equity attributable to equity holders of the parent company								Non-controlling interest	Total equity
	Share capital	Legal reserve	Other reserve	Cumulative translation difference	Fair value reserve	Treasury share s	Retained earnings	Total
Equity on January 1, 2013	149.2	1.9	3.8	-6.1	-3.4	-9.2	869.8	1,005.9	3.3	1,009.2
Comprehensive income
Profit for the review period							340.9	340.9	0.0	340.9
Other comprehensive income:
Cash flow hedges					2.6			2.6		2.6
- Deferred tax					-1.6			-1.6		-1.6
Change in fair value of available for sale investments					0.0			0.0		0.0
- Deferred tax					0.0			0.0		0.0
Translation differences				-36.7				-36.7		-36.7
Comprehensive income, total				-36.7	1.0		340.9	305.2	0.0	305.2
Transactions with owners
Dividend distribution							-94.0	-94.0	0.0	-94.0
Share-based incentive schemes			-3.8			1.0	4.1	1.3		1.3
Assets transferred in the demerger, fair value							-514.9	-514.9		-514.9
Demerger effect		-0.4		-7.7	0.1			-8.0	-0.6	-8.6
Transactions with owners, total		-0.4	-3.8	-7.7	0.1	1.0	-604.8	-615.7	-0.6	-616.3
Changes in ownership shares in subsidiaries no loss of control
Acquisition of non-controlling interest							-2.7	-2.7	-2.3	-5.0
Changes in ownership shares in subsidiaries, total							-2.7	-2.7	-2.3	-5.0
Equity on September 30, 2013	149.2	1.5	0.0	-50.5	-2.3	-8.2	603.2	692.9	0.4	693.2

2.8 Consolidated cash flow statement

EUR million	1-9/13	1-9/12	Change	7-9/13	7-9/12	Change	1-12/12
Cash flow from operating activities
Net profit for the period	52.5	93.6	-44%	7.6	32.9	-77%	142.3
Reversal of accrual-based items	48.7	60.9	-20%	11.8	13.7	-14%	85.7
Change in working capital
Change in trade and other receivables	-54.4	-35.7	52%	11.0	10.4	5%	6.4
Change in inventories	-243.3	-146.6	66%	-136.0	-62.3	118%	-198.0
Change in current liabilities	90.7	133.1	-32%	28.5	14.1	102%	93.6
Change in working capital, total	-206.9	-49.2	321%	-96.5	-37.7	156%	-98.0
Interest paid	-30.4	-23.8	28%	-3.9	-4.4	-12%	-30.4
Other financial items, net	1.7	-6.8	-125%	0.4	-1.9		-6.6
Interest received	2.0	1.8	11%	1.1	0.5	128%	3.2
Taxes paid	-37.5	-19.0	97%	-4.5	-3.4	31%	-24.1
Discontinued operations	-28.9	-29.7	-3%	-2.0	-25.4	-92%	49.3
Net cash generated from operating activities	-198.8	27.8	-815%	-85.9	-25.6	236%	121.5

Cash flow from investing activities
Acquisition of subsidiaries, net of cash	-4.6
Purchases of property, plant and equipment	-7.4	-15.5	-52%	-0.7	-7.3	-90%	-21.5
Purchases of intangible assets	-3.0	-5.5	-45%	-0.2	-0.7	-74%	-7.5
Disposal of affiliated companies		2.9			2.9		2.9
Proceeds from sale of fixed assets	20.8	2.5	733%	2.8	0.3	827%	3.8
Proceeds from sale of other investments	0.0	0.1	-98%				0.1
Discontinued operations	-17.2	-9.1	89%		-0.1		-8.8
Net cash used in investing activities	-11.4	-24.6	-54%	1.9	-4.9		-31.2

Operating cash flow after investments	-210.2	3.1		-84.1	-30.5	176%	90.4

Cash flow from financing activities
Change in loan receivables	1.4	-6.3		-8.1	5.5		-13.9
Change in current liabilities	163.8	64.8	153%	93.9	14.3	557%	-34.9
Proceeds from borrowings	27.7	100.0	-72%				150.0
Repayment of borrowings	-113.2	-121.2	-7%	0.0	-5.6	-100%	-121.6
Payments of financial leasing debts	0.0	-0.2		0.0	-0.1	-84%	-0.2
Dividends paid	-94.0	-88.1	7%				-88.1
Discontinued operations	147.2	-11.3			-3.8		-15.5
Net cash used in financing activities	132.9	-62.3		85.9	10.3	734%	-124.2

Net change in cash and cash equivalents	-77.3	-59.2	31%	1.9	-20.2		-33.9
Cash and cash equivalents at beginning of period	174.6	204.8	-15%	49.7	167.6	-70%	204.8

Change in the fair value of cash equivalents	-2.2	3.9		-0.3	1.9		3.8
Cash and cash equivalents at end of period	51.2	149.3	-66%	51.2	149.3	-66%	174.6

37 (51)

38 (51)

2.9 Accounting principles of the interim report

YIT Corporation's Interim Report for January 1 – September 30, 2013, has been drawn up in line with IAS 34: Interim Financial Reporting. The information presented in the interim report has not been audited. In the interim report the figures are presented in million euros doing the rounding on each line, which may cause some rounding inaccuracies in column and total sums.

The interim report has been prepared in compliance with the International Financial Reporting standards, and the principles for preparing the interim report are the same as those used for preparing the financial statements December 31, 2012, except the changes in the following standards:

IAS 19 (revised) Employee benefits: Standard includes changes to accounting principles of defined benefit plans.

IFRS 13 Fair value measurement: The standard defines fair value. It sets out in a single standard a framework for measuring fair value and requirement for disclosures about fair value measurements.

IAS 1 (amendment) Presentation of comprehensive income: The Group presents other comprehensive income items grouped to items that will not be reclassified to profit or loss and to items that may be reclassified subsequently to profit or loss.

Adjustments to historical reference figures due to the retroactive application of the adjustments to the international IAS 19 Employee Benefits financial statements standard

The Group has adopted the renewed IAS 19 Employee Benefits standard as of January 1, 2013. The standard includes amendments to the recognition of defined benefit pension schemes. The "pipeline method" will be omitted and all actuarial gains and losses will be recognised immediately through comprehensive income. The net asset or liability arising from the pensions is recognised in full on the balance sheet. The interest yield of the assets is calculated by using the same discount rate as when calculating the present value of the pension liability. Changes in the fair value of the pension liability are recognised under comprehensive income whereas previously they were recognised in the personnel expenses in the income statement. The adoption of the revised IAS 19 Employee benefits standard has no impacts on the profit or balance sheet of the continuing operations.

The revised IAS 19 Employee Benefits standard requires retroactive application to the presented financial statements figures. The impact on comparison figures are presented cumulatively in tables below.

As a result of the change of IAS Employee benefits, the Group's defined benefit liability was increased by EUR 25.1 million, defined benefit assets were decreased by EUR 10.3 million, shareholders' equity was decreased by EUR 26.2 million and the balance sheet total was decreased by EUR 10.3 million on the balance sheet per December 31, 2012.

Balance sheet, EUR million	Reported Group, IFRS 1-34P	IAS 19 adjustment Jan 1 2012	Restated Group, IFRS Jan 1, 2012
ASSETS
Non-current assets
Other non-current assets	538.1	-11.8	526.3
Deferred tax receivables	60.3		60.3
Current assets
Inventories	1,672.6		1,672.6
Trade and other receivables	1,027.3		1,027.3
Cash and cash equivalents	206.1		206.1
Total assets	3,504.5	-11.8	3,492.7
EQUITY AND LIABILITIES
Equity	921.1	-37.0	884.1
Non-current liabilities
Borrowings	522.9		522.9
Other non-current liabilities	128.5	39.9	168.4
Deferred tax liabilities	88.3	-14.7	73.6
Current liabilities
Borrowings	423.6		423.6
Advances received	458.3		458.3
Other current liabilities	961.6		961.6
Total equity and liabilities	3,504.5	-11.8	3,492.7
Income statement, EUR million	Reported Group, IFRS 1-34P	IAS 19 adjustment 1-3-12	Restated Group, IFRS 1-3-12
---	---	---	---
Revenue	1,098.4		1,098.4
Other operating income and expenses	-1,032.3	-0.2	-1,032.5
Depreciation	-10.9		-10.9
Operating profit	55.2	-0.2	55.0
Financial income and expenses	-5.2		-5.2
Profit before taxes	49.9	-0.2	49.7
Income taxes	-12.9	0.0	-12.9
Profit for the review period	37.0	-0.1	36.9
Attributable to
Equity holders of the parent company	36.5	-0.1	36.4
Non-controlling interest	0.5		0.5
Earnings per share attributable to the equity holders of the parent company
Earnings/share, EUR	0.29		0.29
Diluted earnings/share, EUR	0.29		0.29

Comprehensive income, EUR million	Reported Group, IFRS 1-3/12	IAS 19 adjustment 1-3/12	Restated Group, IFRS 1-3/12
Profit for the review period	37.0	-0.1	36.9
Other comprehensive income
Change in the value of defined benefit pensions		3.9	3.9
- Deferred tax		-1.1	-1.1
Cash flow hedges	-0.1		-0.1
- Deferred tax	0.0		0.0
Translation differences	25.7		25.7
Other comprehensive income, total	25.6	2.8	28.4
Total comprehensive income	62.6	2.7	65.3

Attributable to
Equity holders of the parent company	62.3	2.7	65.0
Non-controlling interest	0.3		0.3
Balance sheet, EUR million	Reported Group, IFRS 3/12	IAS 19 adjustment 3/12	Restated Group, IFRS 3/12
---	---	---	---
ASSETS

Non-current assets
Other non-current assets	546.1	-11.7	534.4
Deferred tax receivables	64.4		64.4

Current assets
Inventories	1,774.8		1,774.8
Trade and other receivables	1,037.3		1,037.3
Cash and cash equivalents	209.3		209.3
Total assets	3,631.9	-11.7	3,620.2

EQUITY AND LIABILITIES

Equity	897.6	-34.3	863.3

Non-current liabilities
Borrowings	564.1		564.1
Other non-current liabilities	131.9	36.3	168.2
Deferred tax liabilities	89.5	-13.6	75.9

Current liabilities
Borrowings	401.1		401.1
Advances received	518.7		518.7
Other current liabilities	1,028.9		1,028.9

Total equity and liabilities	3,631.9	-11.7	3,620.2

Income statement, EUR million	Reported Group, IFRS 1-6/12	IAS 19 adjustment 1-6/12	Restated Group, IFRS 1-6/12
Revenue	2,317.3		2,317.3
Other operating income and expenses	-2,173.0	-0.3	-2,173.3
Depreciation	-21.5		-21.5
Operating profit	122.8	-0.3	122.5
Financial income and expenses	-11.3		-11.3
Profit before taxes	111.5	-0.3	111.2
Income taxes	-27.9	0.1	-27.8
Profit for the review period	83.6	-0.2	83.4

Attributable to
Equity holders of the parent company	83.4	-0.2	83.2
Non-controlling interest	0.2		0.2

Earnings per share attributable to the equity holders of the parent company
Earnings/share, EUR	0.67		0.66
Diluted earnings/share, EUR	0.67		0.66
Comprehensive income, EUR million	Reported Group, IFRS 1-6/12	IAS 19 adjustment 1-6/12	Restated Group, IFRS 1-6/12
---	---	---	---
Profit for the review period	83.6	-0.2	83.4
Other comprehensive income
Change in the value of defined benefit pensions		9.5	9.5
- Deferred tax		-2.7	-2.7
Cash flow hedges	-0.6		-0.6
- Deferred tax	0.1		0.1
Translation differences	6.0		6.0
Other comprehensive income, total	5.5	6.8	12.3
Total comprehensive income	89.2	6.6	95.8

Attributable to
Equity holders of the parent company	89.1	6.6	95.7
Non-controlling interest	0.1		0.1

Balance sheet, EUR million	Reported Group, IFRS 6/12	IAS 19 adjustment 6/12	Restated Group, IFRS 6/12
ASSETS
Non-current assets
Other non-current assets	540.0	-11.1	528.9
Deferred tax receivables	53.7		53.7
Current assets
Inventories	1,769.5		1,769.5
Trade and other receivables	1,114.3		1,114.3
Cash and cash equivalents	169.5		169.5
Total assets	3,646.9	-11.1	3,635.8
EQUITY AND LIABILITIES
Equity	926.0	-30.5	895.5
Non-current liabilities
Borrowings	549.9		549.9
Other non-current liabilities	131.9	31.5	163.4
Deferred tax liabilities	89.6	-12.1	77.5
Current liabilities
Borrowings	422.7		422.7
Advances received	558.1		558.1
Other current liabilities	968.8		968.8
Total equity and liabilities	3,646.9	-11.1	3,635.8
Income statement, EUR million	Reported Group, IFRS 1-9/12	IAS 19 adjustment 1-9/12	Restated Group, IFRS 1-9/12
Revenue	3,421.0		3,421.0
Other operating income and expenses	-3,200.3	-0.5	-3,200.8
Depreciation	-34.2		-34.2
Operating profit	186.4	-0.5	185.9
Financial income and expenses	-15.7		-15.7
Profit before taxes	170.8	-0.5	170.3
Income taxes	-40.6	0.1	-40.5
Profit for the review period	130.1	-0.3	129.8
Attributable to
Equity holders of the parent company	129.7	-0.3	129.4
Non-controlling interest	0.4		0.4
Earnings per share attributable to the equity holders of the parent company
Earnings/share, EUR	1.03		1.03
Diluted earnings/share, EUR	1.03		1.03

Comprehensive income, EUR million	Reported Group, IFRS 1-9/12	IAS 19 adjustment 1-9/12	Restated Group, IFRS 1-9/12
Profit for the review period	130.1	-0.3	129.8
Other comprehensive income
Change in the value of defined benefit pensions		14.1	14.1
- Deferred tax		-4.0	-4.0
Cash flow hedges	-0.5		-0.5
- Deferred tax	0.1		0.1
Change in fair value of available for sale investments	-0.7		-0.7
- Deferred tax	0.2		0.2
Translation differences	21.3		21.3
Other comprehensive income, total	20.4	10.2	30.6
Total comprehensive income	150.6	9.8	160.4

Attributable to
Equity holders of the parent company	150.1	9.8	159.9
Non-controlling interest	0.4		0.4
Balance sheet, EUR million	Reported Group, IFRS 9/12	IAS 19 adjustment 9/12	Restated Group, IFRS 9/12
---	---	---	---
ASSETS

Non-current assets
Other non-current assets	539.7	-10.9	528.8
Deferred tax receivables	55.9		55.9

Current assets
Inventories	1,858.5		1,858.5
Trade and other receivables	1,118.2		1,118.2
Cash and cash equivalents	150.0		150.0
Total assets	3,722.3	-10.9	3,711.4

EQUITY AND LIABILITIES

Equity	987.9	-27.3	960.6

Non-current liabilities
Borrowings	541.7		541.7
Other non-current liabilities	121.1	27.3	148.4
Deferred tax liabilities	93.5	-10.9	82.6

Current liabilities
Borrowings	435.6		435.6
Advances received	593.6		593.6
Other current liabilities	948.9		948.9

Total equity and liabilities	3,722.3	-10.9	3,711.4

Income statement, EUR million	Reported Group, IFRS 1-12/12	IAS 19 adjustment	Restated Group, IFRS 1-12/12
Revenue	4,705.9		4,705.9
Other operating income and expenses	-4,401.8	-0.1	-4,401.9
Depreciation	-44.9		-44.9
Operating profit	259.2	-0.1	259.1
Financial income and expenses	-21.2		-21.2
Profit before taxes	238.0	-0.1	237.9
Income taxes	-58.1	0.1	-58.0
Profit for the review period	179.9	-0.1	179.8

Attributable to
Equity holders of the parent company	178.7	-0.1	178.6
Non-controlling interest	1.2		1.2

Earnings per share attributable to the equity holders of the parent company
Earnings/share, EUR	1.43		1.43
Diluted earnings/share, EUR	1.43		1.43
Comprehensive income, EUR million	Reported Group, IFRS 1-12/12	IAS 19 adjustment 1-12/12	Restated Group, IFRS 1-12/12
---	---	---	---
Profit for the review period	179.9	-0.1	179.8
Other comprehensive income
Change in the value of defined benefit pensions		15.3	15.3
- Deferred tax		-4.2	-4.2
Cash flow hedges	0.6		0.6
- Deferred tax	-0.1		-0.1
Change in fair value of available for sale investments	-0.4		-0.4
- Deferred tax	0.1		0.1
Translation differences	17.4		17.4
Other comprehensive income, total	17.6	11.0	28.6
Total comprehensive income	197.5	10.9	208.5

Attributable to
Equity holders of the parent company	196.3	11.0	207.3
Non-controlling interest	1.2		1.2

45 (51)

Balance sheet, EUR million	Reported Group, IFRS 12/12	IAS 19 adjustment 12/12	Restated Group, IFRS 12/12
ASSETS

Non-current assets
Other non-current assets	539.5	-10.3	529.2
Deferred tax receivables	49.8		49.8

Current assets
Inventories	1,901.5		1,901.5
Trade and other receivables	1,015.5		1,015.5
Cash and cash equivalents	175.7		175.7
Assets held for sale			0.0
Total assets	3,682.0	-10.3	3,671.6

EQUITY AND LIABILITIES

Equity	1,035.4	-26.2	1,009.2

Non-current liabilities
Borrowings	517.1		517.1
Other non-current liabilities	108.0	25.1	133.1
Deferred tax liabilities	98.7	-9.3	89.4

Current liabilities
Borrowings	404.9		404.9
Advances received	566.6		566.6
Other current liabilities	951.3		951.3

Total equity and liabilities	3,682.0	-10.3	3,671.6

Exchange rates used in the interim report

		Average rate 1-9/13	Average rate 1-9/12	Balance sheet rate 9/13	Balance sheet rate 9/12
EUR 1=	CZK	25.7509	25.1380	25.7300	25.1410
	DKK	7.4574	7.4386	7.4580	7.4555
	HUF	296.7641	291.3100	298.1500	284.8900
	MYR	4.1249	3.9697	4.4103	3.9596
	NOK	7.6604	7.5121	8.1140	7.3695
	PLN	4.2013	4.2088	4.2288	4.1038
	RUB	41.6665	39.7955	43.8240	40.1400
	SEK	8.5803	8.7334	8.6575	8.4498
	SGD	1.6475	1.6125	1.6961	1.5848
	USD	1.3170	1.2813	1.3505	1.2930
	LTL	3.4528	3.4528	3.4528	3.4528
	LVL	0.7010	0.6976	0.7027	0.6962

46 (51)

2.10 Definitions of key financial figures

| Return on investment (ROI, %) = | Group's profit before taxes + interest expenses + other financial expenses + / - exchange rate differences x 100
Balance sheet total - capitalised interest - non-interest bearing liabilities (average) |
| --- | --- |
| Segment's operative invested capital = | Tangible and intangible assets + goodwill + shares in associated companies + investments + inventories + trade receivables + other non-interest bearing operational receivables ) - provisions - trade payables - advances received – other non-interest bearing liabilities )
*) excluding items associated with taxes, distribution of profit and financial items |
| Return on operative invested capital (%) = | Segment's operating profit
Segment's operative invested capital (average) |
| Equity ratio (%) = | Equity + non-controlling interest x 100
Balance sheet total - advances received |
| Gearing ratio (%) = | Interest-bearing liabilities – cash and cash equivalents x 100
Shareholders' equity + non-controlling interest |
| Segment reporting, earnings / share (EUR) = | Net profit for the financial year (attributable to equity holders), segment reporting
Share issue-adjusted average number of outstanding shares during the period |
| Group IFRS reporting, earnings / share (EUR) = | Net profit for the period (attributable to equity holders), group reporting
Share issue-adjusted average number of outstanding shares during the period |
| Equity/share (EUR) = | Equity
Share issue-adjusted number of outstanding shares at the end of the period |
| Market capitalisation = | (Number of shares - treasury shares) x share price on the closing date by share series |

2.11 Financial risk management

Financial risks include liquidity, interest rate, currency and credit risk, and their management is a part of the Group's financing policy. The Board of Directors has approved the Corporate Finance Policy. The Group's Finance Department is responsible for the practical implementation of the policy in association with the business segments and units.

The Group's strategic financial targets guide the use and management of the Group's capital. Achieving the strategic targets is supported by maintaining an optimum Group capital structure. Capital structure is mainly influenced by controlling investments and the amount of working capital tied to business operations.

A more detailed account of financial risks has been published in the notes to the financial statements for 2012.

47 (51)

2.12 Unusual items affecting operating profit

EUR million	1-9/13	1-9/12	Change	1-12/12
International Construction Services		7.0		7.0

The operating profit for International Construction Services for the third quarter of 2012 was improved by the release of a EUR 7 million cost provision due to the ammonia issue in St. Petersburg. YIT made a provision of EUR 10 million during the third quarter of 2011 to cover the costs of rectifying the problem.

2.13 Business combinations and disposals

There have been no acquisitions or disposals in 2013.

2.14 Discontinued operations

The profit of the discontinued operations and profit recognised from asset valuation of assets held for sale are as follows:

EUR million	1-9/13	1-9/12	Change	1-12/12
Discontinued operations
Revenue	1,260.6	2,054.8	-39%	2,803.2
Other operating income and expenses	-1,249.8	-1,979.3	-37%	-2,718.0
Profit before taxes	10.8	51.2	-79%	54.1
Taxes	-3.0	-15.1	-80%	-16.6
Profit of business transferred to Caverion after taxes	7.8	36.2	-78%	37.5
Recognised profit from asset valuation of discontinued operations	293.0
Demerger costs	-17.4
Taxes related to demerger costs	4.9
Profit for the review period, discontinued operations	288.4	36.2	697%	37.5

2.15 Changes in property, plant and equipment

EUR million	1-9/13	1-9/12	Change	1-12/12
Carrying value at the beginning of the period	110.6	110.8	0%	110.8
Translation difference change	-1.4	1.3		1.2
Increase	5.9	20.0	-70%	27.7
Increase through acquisitions	0.0	0.5	-100%	0.5
Decrease	-3.0	-3.5	-15%	-4.2
Decrease through disposals		0.0		0.0
Discontinued operations	-29.9
Depreciation and impairment	-11.1	-17.9	-38%	-23.8
Reclassifications	-0.8	-1.5	-49%	-1.6
Carrying value at the end of the period	70.4	109.7	-36%	110.6

48 (51)

2.16 Inventories

EUR million	9/13	9/12	Change	12/12
Raw materials and consumables	11.0	34.5	-68%	36.2
Work in progress	1,035.2	814.2	27%	894.8
Land areas and plot owning companies	673.3	701.9	-4%	673.5
Shares in completed housing and real estate companies	244.8	245.1	0%	232.0
Advance payments	71.3	59.3	20%	64.1
Other inventories	0.7	3.4	-80%	0.9
Total inventories	2,036.3	1,858.5	10%	1,901.5

2.17 Notes on equity

Share capital and share premium account	Number of outstanding shares	Share capital (EUR million)	Treasury shares (EUR million)
Outstanding shares January 1, 2013	125,383,845	149.2	-9.2
Return of treasury shares, Jan 1 – Mar 31, 2013	-3,726
Return of treasury shares, Apr 1 – Jun 30, 2013	-8,770
Return of treasury shares, Jun 1 – Sep 30, 2013	-5,095
Transfer of treasury shares in accordance with the share incentive plan	224,743		1.0
Outstanding shares Sep 30, 2013	125,590,997	149.2	-8.2

2.18 Borrowings and fair value

Borrowings with fair value differing from carrying value

| EUR million | Sep 30, 2013
Carrying value | Sep 30, 2013
Fair value | Dec 31, 2012
Carrying value | Dec 31, 2012
Fair value |
| --- | --- | --- | --- | --- |
| Non-current liabilities | | | | |
| Bonds | 210.5 | 217.8 | 320.9 | 330.3 |
| Loans from financial institutions | 22.5 | 23.4 | 88.4 | 93.9 |
| Pension loans | 82.4 | 73.6 | 104.6 | 99.1 |
| Other loans | 0.9 | 0.8 | 2.6 | 2.9 |
| Non-current liabilities, total | 316.3 | 315.6 | 516.5 | 526.2 |
| EUR million | Sep 30, 2013
Carrying value | Sep 30, 2013
Fair value | Dec 31, 2012
Carrying value | Dec 31, 2012
Fair value |
| --- | --- | --- | --- | --- |
| Current liabilities | | | | |
| Bonds | 82.9 | 83.0 | 7.1 | 6.9 |

The fair values of bonds are based on the market price at the closing date. The fair values of other non-current loans are based on discounted cash flows. Discount rate is defined to be the rate YIT Group was to pay for equivalent external loans at the year-end. It consists of risk free market rate and company and maturity related risk premium of 0.80–4.00% p.a. (0.80–4.00%).

Fair value estimation

The Group measures the fair value measurement hierarchy as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data.

The following table presents the Group's assets and liabilities that are measured at fair value and their levels.

Assets September 30, 2013
EUR million	Level 1	Level 2	Level 3	Total
Available-for-sale financial assets	0.1		0.7	0.9
Derivatives (hedge accounting not applied)		1.2		1.2
Total assets	0.1	1.2	0.7	2.1

Liabilities September 30, 2013
EUR million	Level 1	Level 2	Level 3	Total
Derivatives (hedge accounting not applied)		-1.4		-1.4
Derivatives (hedge accounting applied)		-1.9		-1.9
Total liabilities		-3.3		-3.3

Assets December 31, 2012
EUR million	Level 1	Level 2	Level 3	Total
Available-for-sale financial assets	2.1		1.3	3.4
Derivatives (hedge accounting not applied)
Total assets	2.1		1.3	3.4

Liabilities December 31, 2012
EUR million	Level 1	Level 2	Level 3	Total
Derivatives (hedge accounting not applied)		11.4		11.4
Derivatives (hedge accounting applied)		4.7		4.7
Total liabilities		16.1		16.1

Changes in level 3 instruments:

EUR million	Assets Sep 30, 2013	Assets Dec 31, 2012
Opening balance sheet	1.3	1.3
Transfers into/from level 3
Purchases and sales		0.0
Discontinued operations	-0.6
Gains and losses recognised in profit or loss
Gains and losses recognised in comprehensive profit or loss
Closing balance	0.7	1.3

50 (51)

2.19 Change in contingent liabilities and assets and commitments

EUR million	9/13	9/12	Change	12/12
Collateral given for own commitments
- Corporate mortgages		30.1		29.3
- Other pledged assets
Other commitments to associated companies	6.8	7.0	-3%	7.0
Other commitments
- Repurchase commitments	343.5	334.2	3%	349.3
- Operating leases	191.3	315.7	-39%	355.0
- Rental guarantees for clients	0.4	2.4	-84%	2.1
- Other contingent liabilities		1.3		1.3
- Guarantees given
Liability under derivative contracts
- Value of underlying instruments
- Interest rate derivatives	290.5	467.0	-38%	579.6
- Foreign exchange derivatives	131.2	190.7	-31%	220.4
Commodity derivatives		2.5		1.9
- Market values
- Interest rate derivatives	-2.3	-14.1	-84%	-13.6
- Foreign exchange derivatives	0.3	-0.8		-1.6
Commodity derivatives		-1.1		-0.9
Parent company's guarantees on behalf of subsidiaries	970.8	1,518.6	-36%	1,537.3

As a result of the partial demerger registered on June 30, 2013, YIT Corporation had secondary liability for guarantees transferred to Caverion Corporation, with a maximum total amount of EUR 177.8 million on September 30, 2013.

Contingent liabilities and assets for the comparison periods include contingent liabilities and assets of YIT's building services business, transferred to Caverion Corporation in the partial demerger June 30, 2013.

2.20 Transactions with associated companies and joint ventures

EUR million	1-9/13	1-9/12	Change	1-12/12
Sales	53.1	47.7	11%	70.0
Purchases		0.1		0.1
	9/13	9/12	Change	12/12
Trade and other receivables	0.0	0.1	-73%	0.1
Trade and other liabilities		0.0		0.0

3 NON-IFRS BALANCE SHEET AND KEY FIGURES

The non-IFRS balance sheet and key figures illustrate what YIT's financial position and key figures would have been had the demerger taken place on January 1, 2012. YIT published additional information on the continuing operations in a stock exchange release on May 21, 2013. The non-IFRS balance sheet and key figures correspond with the figures published in that stock exchange release. The assets and liabilities related to YIT's Building Services business have been excluded from the balance sheet for the comparison periods. The figures have been calculated on the basis of this restated balance sheet. The non-IFRS balance sheet presents YIT's capital structure in accordance with the demerger plan. The financing arrangements negotiated for the demerger have been taken into account in the preparation. The assumptions applied in the preparation are described in more detail in a stock exchange release published on May 21, 2013.

It is the company's view that the non-IFRS balance sheet and key figures provide a relevant picture of the result of operations and financial position of the continuing YIT Group. Adjustments made in the preparation

of unaudited non-IFRS information are based on available data and assumptions, and there is no guarantee that the assumptions applied in the preparation will prove to be correct. The non-IFRS balance sheet and key figures are presented for illustrative purposes only, and as such, they may not necessarily illustrate the company's financial position after the demerger.

EUR million	9/13	6/13	3/13	12/12	9/12	6/12	3/12
Assets

Non-current assets
Tangible assets	70.4	74.1	77.0	78.7	76.4	74.4	76.6
Goodwill	10.9	10.9	10.9	10.9	10.9	10.9	10.9
Other intangible assets	4.0	5.7	22.6	22.8	22.3	23.2	22.5
Shares in associated companies	0.4	0.4	0.4	0.4	0.3	0.4	3.0
Other investments	0.9	0.9	0.9	0.9	0.9	0.9	0.9
Other receivables	1.0	0.5	0.6	1.0	1.2	0.8	0.6
Deferred tax receivables	46.4	43.9	46.6	44.3	49.9	47.3	54.9

Current assets
Inventories	2,036.3	1,919.7	1,914.6	1,862.5	1,814.5	1,726.8	1,727.5
Trade and other receivables	317.3	321.1	250.7	244.9	298.9	316.5	294.7
Cash and cash equivalents	52.4	49.7	63.9	74.9	56.2	60.2	65.1
Total assets	2,540.0	2,426.8	2,388.2	2,341.3	2,331.5	2,261.4	2,256.7

Equity and liabilities

Equity attributable to equity holders of the parent company	692.9	695.7	720.4	759.0	644.8	613.0	584.4
Non-controlling interest	0.4	0.4	0.4	2.7	1.9	1.6	2.4

Total equity	693.2	696.1	720.8	761.7	646.7	614.6	586.8

Non-current liabilities
Deferred tax liabilities	14.1	18.2	24.5	20.7	17.8	16.4	16.9
Pension obligations	0.7	0.7	0.6	0.6	0.6	0.6	0.4
Provisions	42.8	43.6	42.9	41.6	45.4	53.8	46.1
Borrowings	316.6	370.6	387.9	441.4	410.8	416.7	427.2
Other liabilities	27.7	24.8	37.0	28.0	32.6	37.6	43.9

Current liabilities
Advances received	475.3	433.3	446.7	429.5	460.1	421.6	396.0
Trade and other liabilities	355.4	374.9	357.6	345.6	362.9	359.2	415.0
Provisions	21.2	21.1	16.5	22.8	23.3	23.4	29.0
Current borrowings	593.1	443.5	353.7	249.5	331.3	317.6	295.4

Total equity and liabilities	2,540.0	2,426.8	2,388.2	2,341.3	2,331.5	2,261.4	2,256.7

Equity/share, EUR	5.52	5.54	5.75	6.05	5.14	4.89	4.67
Net interest-bearing debt at end of period, EUR million	857.3	764.4	677.7	616.0	685.9	674.1	657.5
Return on investment, last 12 months, %	9.3	12.6	14.3	15.0
Equity ratio, %	33.6	34.9	37.3	39.8	34.6	33.4	31.5
Gearing ratio, %	123.7	109.8	94.0	80.9	106.1	109.7	112.0

AI assistant

YIT Oyj — Interim / Quarterly Report 2013

3249_rns_2013-10-30_a0afc730-0bbf-4952-8af8-5aacf0469ae7.pdf

Interim Report 1–9/2013

July–September 2013 (segment reporting, POC)

January–September 2013 (segment reporting, POC)

Guidance unchanged

Kari Kauniskangas, President and CEO: Significant milestones in strategy implementation

Key figures

Contents

Group financial development based on segment reporting

Accounting principles applied in the interim report

Revenue

Profit

Order backlog

Acquisitions and capital expenditure

Cash flow and invested capital

Development by business segments

CONSTRUCTION SERVICES FINLAND

Investor deals compensated residential sales

Challenges in the business and commercial premises market

Development of Infra Services remained stable

INTERNATIONAL CONSTRUCTION SERVICES

Russian residential sales continued strong

Regional differences between the Baltic countries and Central Eastern Europe

Business premises in the Baltic countries and Central Eastern Europe

Diverse capital structure and strong liquidity position

Personnel

Mission, vision and values

Strategic objectives

Resolutions passed at General Meetings

YIT Corporation's demerger registered with the Finnish Trade Register

Shares and shareholders

Share capital and number of shares

Treasury shares and authorisations of the Board of Directors

Trading on shares

Number of shareholders and flagging notifications

Most significant short-term business risks and risk management

Outlook for 2013

Construction Services Finland

International Construction Services

1 SEGMENT REPORTING

2 GROUP REPORTING, IFRS

3 NON-IFRS BALANCE SHEET AND KEY FIGURES

1 SEGMENT REPORTING

1.1 Segment reporting accounting principles

1.2 Key figures, segment reporting

1.3 Revenue, segment reporting

1.4 Operating profit and Profit for the review period, segment reporting

Operating profit margin, segment reporting

1.5 Order backlog, segment reporting

1.6 YIT Group figures by quarter, segment reporting

1.7. Segment information by quarter, segment reporting

1.8 Reconciliation of the segment reporting and the group reporting

2 GROUP REPORTING, IFRS

2.1 Key figures, IFRS

2.2 YIT Group figures by quarter, IFRS

2.6 Consolidated balance sheet, IFRS

2.9 Accounting principles of the interim report

Adjustments to historical reference figures due to the retroactive application of the adjustments to the international IAS 19 Employee Benefits financial statements standard

2.10 Definitions of key financial figures

2.11 Financial risk management

2.12 Unusual items affecting operating profit

2.13 Business combinations and disposals

2.14 Discontinued operations

2.15 Changes in property, plant and equipment

2.16 Inventories

2.17 Notes on equity

2.18 Borrowings and fair value

Fair value estimation

2.19 Change in contingent liabilities and assets and commitments

2.20 Transactions with associated companies and joint ventures

3 NON-IFRS BALANCE SHEET AND KEY FIGURES

More from YIT Oyj

YIT Oyj Interim / Quarterly Report 2013