YIT management system GRIP / HP&AH&TT 2019 YIT Company-Wide Management System for Project Business

JOHANNA AROLA , DEVELOPMENT MANAGER, YIT SUOMI OY 2019 Creating better living environments We develop and build apartments and living services, business premises and entire areas. We are also specialised in demanding and paving. Together with our customers, we create more functional, more attractive and more sustainable cities and environments.

MERENKULKIJANRANTA, , 1910 The history of YIT businesses. products concrete and bitumen waterproofing, in theinitially operates It 1910.in established is Lemminkäinen OsakeyhtiöAsfaltti ESTABLISHED IS LEMMINKÄINEN 1910 1910 Helsinki. in office an opens (AIB) AB BYRÅN INGENIÖRS ALLMÄNNA 1912 1912 - – The The production BEGINS FELT ROOFING OF PRODUCTION 1920 plants. sewerage andsupply water builder of leading Finland’s become to grows company The operations. thecontinue to INSINÖÖRITOIMISTO YLEINEN ESTABLISH BUSINESSMEN FINNISH 1920 starts in 1920. in starts felt roofing of 2019 1920

1930 paved in in 1930.paved are roads The first PAVING IN DEVELOPMENTS 1930

1940 until until 1990. East Middle the to services construction export to starts and OPERATIONS CONSTRUCTION ITS EXPANDS COMPANY THE 1950 1950 Vesto Oy.Vesto Insinööritoimisto and Pellonraivaus Oy Insinööritoimisto, Yleinen Perusyhtymä,by FORMED IS YIT MODERN THE 1960 decade. the of end the at operator paving Finland’s largest as Emerges EXPANDED OPERATIONS CONSTRUCTION 1960 1960 exporter in in Finland. exporter construction and company construction largest the become to GROWS YIT 1970

opportunities. up export opens acquisition The Ab. Palmberg A. Alfred Oy company construction the acquires Lemminkäinen BEGINS GROWTH STRONG 1975 1970 construction in in Finland. construction include housing to 1984in expanded are Operations BEGINS CONSTRUCTION HOUSING 1980

YIT forming MERGE PERUSYHTYMÄ ANDYIT 1987 1980 - Yhtymä Oy. Yhtymä exchange. stock theis listed on LEMMINKÄINEN 1989 revenue. total Group’s the of half than more accounts business Foreign countries. 11 in operates Group the 1994,By WORLD THE AROUND PROJECTS 1990 1990 exchange. stock the onis listed YIT 1995 - YHTYMÄ YHTYMÄ building systems. include toexpanded is offering The service REGION NORDIC THE IN CONTRACTOR ASPHALT SECOND THE 2000 Europe.Central and Baltic countries the to expanded is construction business premises and Housing Europe. and Central countries Nordic the in services building to operations EXPANDS YIT THE 2000s,IN 2000 - LARGEST LARGEST its its

company, listed publicly formed newlyto a transferred are while its building services operations, construction continues YIT companies. separate two form to DEMERGER A UNDERGOES YIT 2013 2010 of growth. of pursuit the by later Followed efficiency. operational and sheet balance strong on a Focus DIRECTION IN CHANGE 2014 Caverion . stable togetherstable more and Stronger MERGE ANDYIT LEMMINKÄINEN 2018 January 1, 2020 1, January place take to July,estimated in Announced BUSINESS AGGREGATES MINERAL AND PAVING NORDICOF SALE

2019 2018 in figures*

REVENUE* ADJUSTED OPERATING PROFIT* 3.2 132.0 EUR billion in 2018 EUR million in 2018

NET PROMOTER SCORE EMPLOYEES** (NPS) 7,600 52% in 10 countries SCALE: -100%–100%

YIT announced on July 4, 2019 the sale of its Nordic paving and mineral aggregate businesses. * Pro forma restated ** Continuing operations

BUSINESS CENTER B66, KAUNAS, LITHUANIA We are the largest Finnish and a significant North European construction and development company

Restated revenue by geography, EUR million, 2018 Personnel figures: continuing operations FINLAND FINLAND Revenue: 2,300 NORWAY RUSSIA Personnel: 4,400 SCANDINAVIA ESTONIA Revenue: 100 LATVIA Personnel: 200 LITHUANIA RUSSIA Revenue: 300 POLAND Personnel: 1,400 CZECH BALTIC COUNTRIES REPUBLIC SLOVAKIA Revenue: 300 Personnel: 1,300

CEE COUNTRIES Revenue: 200 Personnel: 300

6 YIT announced on July 4, 2019 the sale of its Nordic paving and mineral aggregate businesses. Structure of Management Systems

Management systems describe agreed management and operational practices; Values, Vision, common ways of working. Mission It defines how performance is evaluated, managed and continually improved. Policies, Through the management system, we Principles, ensure that our competitiveness develops according to our goals and objectives. Processes and performance indicators Management Systems are based on legal requirements, standards, business best practices and operating models. Documents and IT-systems

Structural hierarchy of Management Systems 7 Common management system in YIT

With a common management system we can • Lead our business more effectively • Common processes → common key results and performance transparency • Respond to external requirements and regulations • Continuously develop our way of working (efficiency) • Share best practices • Break down silos for better cooperation throughout the company • Implement change in agile way • Appear to customers as one company What is GRIP? #together “We will succeed if we work together with the agreed new YIT ways, with a common management approach and a common goal, with a good grip on our own responsibilities and team achievements.” -Kari Kauniskangas, YIT CEO

We use “GRIP” to describe new YIT's management system and common ways to operate, as well as the work that aims to harmonize both of these. GRIP also describes well our culture – the will to find and continuously develop common smart ways of working, and active approach to solving challenges together. Video of YIT Management System GRIP Customer focused and continually improved common ways of working

Management System Procedures, instructions, templates

Processes show what Best practice sharing to do and when and improvement suggestions Project execution and daily work Regular evaluation of performance

GRIP auditing Management reviews Evaluation of operations and management against Reviews of performance by management to ensure that regulations (laws, standards, etc.), stakeholder GRIP and ways of working are effective and compliant requirements and GRIP practices. with organization's objectives and requirements • Third-party GRIP audits annually by certification • Customer and stakeholder feedback company • Performance measurements • Second-party GRIP audits on request by customer/ • Risks and opportunities contracted organization • Resource requirements and performance of suppliers • First-party GRIP audits regularly by defined YIT personnel (internal and supplier audits) • Changes in operating environment • Audit results → Fact based and up-to-date information of performance, degree of compliance and way → Decision making regarding management system of working to different management forums change and development actions. and annual planning process.

Continous development of Management System Yearclock for Management System development

INTERNAL AUDITS according to the yearly T planning.

ANNUAL PLANNING OF AUDITS Repeat the cycle N-times within year T to support continuous development.

OCTOBER Country –level Q4 Q1 T T Management Review and changes APRIL Management Review including development proposals with Management resources and needs for changes. Implementation and Deployment System Implementation and Deployment T OCTOBER Management Review Yearclock T including development proposals with resources and needs for APRIL Country –level Management changes. Q3 Q2 Review and changes Segment Management Review Participants: • Segment Management Responsible for the Management • Segment MS Representative System is responsible to lead the operations within the yearclock. T EXTERNAL AUDITS according to the yearly planning.

ISO 45001 implementation requires participation of representatives of workers to Management System development. Roles in maintaining and developing Management System

Management GRIP user • Ensures that resources required by the management system are available. • Follows way of working, • Responsible for realisation of set policies, principles and GRIP practices. GRIP practice. • Ensures that GRIP operates in target oriented and effective way. • Proposes and participates in improvement actions. Process owner • Defines way of working for a process and is responsible for the process meeting set targets as well as fulfilling stakeholder and business requirements. • Develops process performance continually, in alignment with interfacing processes and process owners. Development Engineers • Trains and supports implementation and Management system responsible maintenance of GRIP • Facilitates and coordinates development and evaluation of GRIP in area of practices. responsibility and supports implementation of ways of working. • Auditing. • Supports management and employees in maintenance and improvement of effectiveness and performance of the management system. Johanna Arola

Development Manager YIT Suomi Oy, Infrastructure Projects

[email protected]

040 8269379

Panuntie 11, Helsinki /Finland

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