Lemminkäinen - Company Announcement

Lemminkäinen withdraws from its role as a developer in Ilmatar housing construction project in Russia

LEMMINKÄINEN CORPORATION   STOCK EXCHANGE RELEASE  31 MARCH 2015 AT 9:15 A.M.

LEMMINKÄINEN WITHDRAWS FROM ITS ROLE AS DEVELOPER IN ILMATAR HOUSING
CONSTRUCTION PROJECT IN RUSSIA 

Lemminkäinen has decided to withdraw from its role as developer in a planned
project with Lipsanen & Co. Group in Vasily Island in St Petersburg, including
2,000 apartments. The decision is impacted by the uncertainties in the
operating environment and weakened economic situation in Russia as well as the
risk level of the project for Lemminkäinen. Lemminkäinen and Lipsanen & Co.
Group made a framework agreement regarding the project in February 2011. The
companies are negotiating alternative ways to carry out the project. 

“Our building construction and paving businesses continue in Russia and our
ongoing projects in St Petersburg and Moscow proceed as planned,” says Casimir
Lindholm, President and CEO at Lemminkäinen. 

At the end of year 2014, Lemminkäinen had 755 employees in its Russian
operations and the net sales were EUR 196 million. In Lemminkäinen's strategy
review in July 2014, the company estimated that it does not expect its net
sales in Russia to increase significantly in the next few years. 

Lemminkäinen will keep its profit guidance for 2015 intact: Lemminkäinen
estimates that its net sales in 2015 will not increase as compared to 2014 (EUR
2,044.5 million). Operating profit (IFRS) in 2015 is expected to improve as
compared to 2014 (EUR 36.3 million). 

Lemminkäinen announced on 10 February 2011 the Ilmatar project.

LEMMINKÄINEN CORPORATION
Corporate Communications


ADDITIONAL INFORMATION:
Casimir Lindholm
President and CEO
Tel. +358 2071 54524
casimir.lindholm@lemminkainen.com

Katri Sundström
Head of Investor Relations
Tel. + 358 2071 54813
katri.sundstrom@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 5,600 professionals. In 2014, our net sales were about EUR 2.0
billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic
Exchange Helsinki. www.lemminkainen.com