Lemminkäinen - Company Announcement

Lemminkäinen's 2014–2018 strategy and financial targets: focus on insightful infrastructure solutions and Russia

LEMMINKÄINEN CORPORATION   STOCK EXCHANGE RELEASE   11 OCTOBER 2013 AT 11.00
A.M. 


LEMMINKÄINEN'S 2014-2018 STRATEGY AND FINANCIAL TARGETS: FOCUS ON INSIGHTFUL
INFRASTRUCTURE SOLUTIONS AND RUSSIA 

Lemminkäinen will focus on insightful customer solutions, especially in
infrastructure construction. The company will also seek profitable growth in
residential development and construction in Russia. Furthermore, Lemminkäinen
will examine strategic options for its technical building services business.
Lemminkäinen's profitability and solvency targets for the strategy period are:
return on investment 18 per cent over the cycle and equity ratio at least 35
per cent. 

Lemminkäinen aims to grow into one of the leading providers of demanding
infrastructure solutions in Northern Europe. This will mean an enhanced
offering especially for the traffic and energy industry and urban
infrastructure projects. Growth will also be sought through acquisitions. 

In Russia, the residential development and construction business will be
extended from St. Petersburg to other selected urban growth centres. The
company will also explore options for widening its infrastructure construction
offering in Russia. By the end of the strategy period, Lemminkäinen estimates
that Russia comprises approximately 20 per cent of Group net sales. 

In paving and mineral aggregates, Finnish building construction and technical
building services, Lemminkäinen will continue to focus on improving operational
and capital efficiency. Strategic options for technical building services will
be examined. 


Financial targets

Lemminkäinen's financial targets for 2014-2018 are:

  -- Return on investment 18 per cent over the cycle
  -- Equity ratio at least 35 per cent 

Lemminkäinen estimates that its net sales at the end of the strategy period
will be slightly higher than in 2013. 

Lemminkäinen is aiming for a stable distribution of dividends, with at least 40
per cent of the profit for the financial year distributed to shareholders. 


New reporting structure

Based on the new strategy, Lemminkäinen will renew its reporting structure. The
renewal will increase the transparency of reporting regarding Scandinavia and
Russia. From 1 January 2014, its reporting segments will be: 

  -- Finland, building construction
  -- Finland and the Baltic countries, infrastructure construction
  -- Finland, technical building services
  -- Russia
  -- Scandinavia


President and CEO Timo Kohtamäki comments:"Our new vision is to provide insightful solutions above the ground and
underground. Our emphasis will increasingly be on the early stages of the
construction value chain. Through more intensive customer collaboration we will
gain predictive insight into their needs. This in turn will guide our solutions
development.  We will also seek strategic partnerships in creating true
customer value," says Timo Kohtamäki, President and CEO of Lemminkäinen. "The infrastructure market especially in Sweden and Norway is very attractive
for us. We have high-level technical competence and strong references in
demanding solutions. These, together with good customer relationships, provide
a firm foundation for profitable growth.""In Russia, we serve the growing middle-class which is looking for modern,
high-quality apartments in good locations. The growth of this market is
supported by urbanisation and demographic changes as well as the development of
the mortgage market.""Finland continues to be an important market for Lemminkäinen. Despite the
challenging market, we see plenty of potential in urban growth centres, both in
building and infrastructure construction."


LEMMINKÄINEN CORPORATION
Corporate Communications


ADDITIONAL INFORMATION:
Timo Kohtamäki, President & CEO
tel. +358 (0)2071 53263
timo.kohtamaki@lemminkainen.com

Robert Öhman, CFO
tel. +358 (0)2071 53515
robert.ohman@lemminkainen.com


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 8,200 experts. In 2012, our net sales were about EUR 2.3 billion.
Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange
Helsinki. www.lemminkainen.com