Lemminkäinen - Inside information

Lemminkäinen changes its profit guidance for year 2017 - the operating profit (IFRS) will decrease clearly due to estimated one-off transaction costs

LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 12 SEPTEMBER 2017 AT 4:35 P.M.

LEMMINKÄINEN CHANGES ITS PROFIT GUIDANCE FOR YEAR 2017 - THE OPERATING PROFIT
(IFRS) WILL DECREASE CLEARLY DUE TO ESTIMATED ONE-OFF TRANSACTION COSTS

On 12 September 2017, the Extraordinary General Meetings of Lemminkäinen and YIT
Corporation (“YIT”) approved the combination of Lemminkäinen and YIT pursuant to
the merger plan as proposed by the Board of Directors of the two companies (the
“EGM approvals”). As Lemminkäinen announced in its Half Year Report published on
27 July 2017, it estimates that the combination will create significant one-off
transaction costs for year 2017.  Most of the one-off costs are conditional to
the completion of the combination, which is subject to, inter alia, the above
mentioned EGM approvals as well as approvals from competition authorities. As
previously announced, the combination is intended to be completed on either 1
November 2017 or 1 January 2018, as possible. Following the EGM approvals
Lemminkäinen estimates that the company will record these combination-related
one-off transaction costs in the income statement for the year 2017.

Due to the estimated one-off transaction costs and other items affecting
comparability, Lemminkäinen’s operating profit (IFRS) is estimated to decrease
clearly under EUR 45.1 million, which reflects the operational performance in
2016. However, the company estimates that its operative result in 2017 will
improve from the result reflecting the operational performance in the comparison
period.

Due to the recognition of the one-off transaction costs and in order to improve
the comparability of the financial information and to help the stakeholders to
follow the development of the company’s operative results, Lemminkäinen updates
its profit guidance for 2017 and introduces the key figure “adjusted operating
profit”. The company has defined adjusted operating profit as follows (in line
with the definition in the pro forma financials of the merger prospectus
published in relation to the combination): operating profit is adjusted by
material items affecting comparability outside ordinary course of business such
as transaction costs related to planned combination as well as payments,
compensations and reimbursements related to court proceeding and write-downs
related to non-core businesses.

Lemminkäinen’s updated profit guidance for 2017 is: “Lemminkäinen estimates that
its net sales in 2017 will grow from 2016 (EUR 1,682.7 million). The adjusted
operating profit in 2017 is expected to improve from the adjusted operating
profit in 2016 (EUR 45.1 million).“

The earlier profit guidance, issued in the Half Year Financial Report on 27 July
2017, was “Lemminkäinen estimates that its net sales in 2017 will grow from 2016
(EUR 1,682.7 million). Operating profit (IFRS) in 2017 is expected to improve
from EUR 45.1 million which reflects the operational performance in 2016.”

LEMMINKÄINEN CORPORATION
Corporate Communications

ADDITIONAL INFORMATION:
Ilkka Salonen, CFO
Tel. +358 2071 53304
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