Honkarakenne Oyj - Changes board/management/auditors

HONKARAKENNE OYJ REORGANIZES ITS OPERATIONS

HONKARAKENNE OYJ Stock Exchange Release 2 December 2014 at 9:55 a.m.

HONKARAKENNE OYJ REORGANIZES ITS OPERATIONS

Honkarakenne has concluded negotiations under the act on co-operation within
undertakings launched in October. After concluding the co-operation
negotiations the company has decided on reorganization and efficiency actions
including reduction of 17 person-years. Actions will be implemented by laying
off personnel for an indefinite period. In addition, the company has agreed on
temporary lay-offs for a maximum of 90 days during March - December 2015
concerning clerical and managerial employees in Finland. 

Reorganization includes changes in company's executive group. The new executive
group is Mikko Kilpeläinen, president and CEO, Mika Koivisto, sales area
Finland, Pekka Elo, sales area Global Markets, Peter Morinov, sales area Russia
and CIS-countries, Tanja Rytkönen, model collections and design, Erja
Heiskanen, operations and Mikko Jaskari, finance. President and CEO Mikko
Kilpeläinen is personally in charge of company's product management
development. 

The personnel reductions and efficiency activities are estimated to result in
0,2 million euros non-recurring costs in financial year 2014 as provision cost
for dismissals. The full impact of the programme will be apparent from the
third quarter in 2015. 

Honkarakenne will streamline its operations to achieve growth and better
profitability. Focus will be on developing sales and marketing, improving the
network of importers and distributors, and developing the design and
architecture of company's products. Efforts in Russia, CIS-countries and Asia
will be continued, since the company sees significant long-term growth
potential in these market areas, especially in China. To ensure growth in
Finland the company will focus on the residential housing market and strengthen
its position as the market leader in the leisure market. Special attention will
be paid to residential housing models which are designed according to the Honka
healthy house concept. 

HONKARAKENNE OYJ

Mikko Kilpeläinen

President and CEO
FURTHER INFORMATION 
Mikko Kilpeläinen, President and CEO, tel. +358 50 542 5884,
mikko.kilpelainen@honka.com 
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com