Lemminkäinen - Company Announcement

Lemminkäinen has concluded personnel negotiations in Finland

LEMMINKÄINEN CORPORATION     STOCK EXCHANGE RELEASE     9 JUNE 2014 AT 11:15 A:M


LEMMINKÄINEN HAS CONCLUDED PERSONNEL NEGOTIATIONS IN FINLAND

The personnel negotiations at Lemminkäinen that began on 5 May 2014 have been
concluded in Finland. As a result, Lemminkäinen will cut a maximum of 265
full-time equivalents from its operations in Finland. When the negotiations
were initiated, Lemminkäinen estimated that the personnel impact of the planned
measures is up to 500 full-time equivalents about half of which in Finland. The
negotiations are part of Lemminkäinen's Deliver 2014 programme through which
the company aims to save approximately EUR 30 million in fixed costs. The
savings target for 2014 is EUR 10 million. According to the company's estimate,
the set targets will be achieved with the personnel reductions as well as with
other cost savings. 

In Finland, the personnel reductions will be realised through the termination
of employment contracts, temporary lay-offs, discontinuation of fixed-term
contracts, retirement, resignations and other voluntary arrangements. It is
estimated that the measures will take place gradually by the end of October
2014. The exact reduction rates per area will be fully clear only after this.
Lemminkäinen has decided to close its building construction offices in Kokkola
and Kouvola. 

In addition, Lemminkäinen will achieve cost savings by i.a. cutting or
re-evaluating some of the Group's IT and other development projects, selling
non-core assets and operations, lightening its support functions and by cutting
back other fixed costs that are not critical to business operations. 

“The Deliver 2014 programme will lighten our cost structure and improve our
operational efficiency in a challenging operating environment. As difficult as
some of these decisions have been, they will significantly improve
Lemminkäinen's competitiveness The company's renewal will continue,” says
Lemminkäinen's interim President and CEO Berndt Brunow. 

On 28 April 2014, Lemminkäinen announced that as a part of its Deliver 2014
programme it will begin personnel negotiations or similar measures that cover
the entire Group and all personnel groups apart from the Technical building
services business segment. In Denmark, the negotiations have already been
concluded. In Russia, Norway, Sweden, Estonia, Latvia and Lithuania, the
processes are still ongoing. The progress of the Deliver 2014 programme and its
personnel impacts will be reported in connection with the interim reports. 

Lemminkäinen employed 6,761 people at the end of March 2014. Approximately
4,500 people worked in Finland, of which 1,500 were employed by Technical
building services. 


LEMMINKÄINEN CORPORATION
Corporate Communications

ADDITIONAL INFORMATION:
Berndt Brunow, Chairman of the Board of Directors, interim President & CEO
Ilkka Salonen, interim CFO
Tel. +358 2071 54524 and +358 2071 54518

DISTRIBUTION:
NASDAQ OMX Helsinki
Key media
www.lemminkainen.com

Together with our customers we create conditions that make living, working and
travelling functional, safe and healthy. We operate in northern Europe and
employ about 7,800 experts. In 2013, our net sales were about EUR 2.2 billion.
Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange
Helsinki. www.lemminkainen.com