Lemminkäinen - Inside information

Lemminkäinen writes down deferred tax assets related to Norway and Sweden

LEMMINKÄINEN CORPORATION      STOCK EXCHANGE RELEASE 5 JANUARY 2018 AT 9:15 A.M.

LEMMINKÄINEN WRITES DOWN DEFERRED TAX ASSETS RELATED TO NORWAY AND SWEDEN

In its financial statements 2017, Lemminkäinen will record a write-down for its
deferred tax assets related to Norway and Sweden in accordance with IFRS
standards.

On 30 November 2017, Lemminkäinen announced that it will start a programme to
improve its competitiveness and profitability in its paving business in Sweden
and Norway with activities such as lightening its operating model. Tax losses
accumulated in the recent past in Norway and Sweden are causing significant
uncertainty, when assessing their utilisation in accordance with the IFRS
standards. According to the assessment, it is currently unlikely that sufficient
taxable profit would be available in the future for the utilisation of the
deferred tax assets. The write-down is made to the extent that the company has
taxable temporary differences against which it will be able to use its unused
tax losses.

The write-down will increase the company’s income tax expense in the income
statement for 2017 and decrease the profit for the financial year. The write
-down will not have an impact on the company’s profit guidance or cash flow for
the year 2017. Lemminkäinen had recognised deferred tax assets of approximately
EUR 10 million in Norway and approximately EUR 3 million in Sweden in September
2017.

Most of the deferred tax assets related to Norway and Sweden that will be
written down will not expire and their future utilisation is not dependent on
the accounting treatment. The company reassesses regularly the recognition
criteria for the off-balance sheet deferred tax assets.

LEMMINKÄINEN CORPORATION
Corporate Communications

ADDITIONAL INFORMATION:
Ilkka Salonen, CFO
Tel. +358 2071 53378
ilkka.salonen@lemminkainen.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.lemminkainen.com

Lemminkäinen is an expert in complex infrastructure construction and building
construction in Northern Europe and one of the largest paving companies in its
market. Together with our customers and 4,700 professionals we employ, we build
a sustainable society. In 2016, our net sales were EUR 1.7 billion. Lemminkäinen
Corporation’s share is quoted on Nasdaq Helsinki Ltd. www.lemminkainen.com