Lemminkäinen Annual Report 2001 · LEMMINKÄINEN CORPORATION esterinportti 2, 0024000240 helsinki P.O.BOX 2323, 0024100241 helsinki telephone +358358 9 15 9919 15 991 fax +358358

LEMMINKÄINEN CORPORATIONesterinportti 2, 0024000240 helsinkiP.O.BOX 2323, 0024100241 helsinkitelephone +358358 9 15 9919 15 991fax +358358 9 140 69 140 672www.lemminkainen.fi

lemm

inkäinen corporation annual report 2001

annual report 2001

2 lemminkäinen oyj vuosikertomus 2001

contents

year 2001 ............................................................................................... 1lemminkäinen group...................................................................... 2strategy ................................................................................................. 4review by the managing director............................................ 5paving and mineral aggregates division ............................. 6building materials division........................................................ 10lemminkäinen construction ltd.............................................. 14oy alfred a. palmberg ab ............................................................... 18tekmanni oy......................................................................................... 22risk management.............................................................................. 26environment....................................................................................... 27research and development ......................................................... 28personnel............................................................................................. 30board of directors’ report for the accounting

period 1st jan. 2001 – 31st dec. 2001 ......................................... 32consolidated income statement .............................................. 34consolidated balance sheet ....................................................... 35consolidated statement of source

and application of funds ........................................................ 36parent company income statement ......................................... 37parent company balance sheet.................................................. 38parent company statement of source

and application of funds ........................................................ 39accounting principles ................................................................... 40notes to the financial statements........................................... 41economic trends and financial indicators ....................... 52shares and shareholders............................................................ 54board of directors’ proposal for appropriation of

retained earnings ....................................................................... 57auditors’ report ................................................................................ 57parent company board of directors ...................................... 58corporate governance .................................................................. 59information for shareholders ................................................ 60contact information ..................................................................... 61

1lemminkäinen corporation annual report 2001

year 2001

YEAR OF GROWTH

The net sales of the LemminkäinenGroup rose 16 % and were EUR 1 116.5 million (964.6). The net salesgrowth was mainly attributable to theacquisition of Tekmanni Oy inOctober 2000 and the purchase ofIcopal a/s’s asphalt and mineral aggre-gate operations in Denmark andNorway. The later transaction affect-ed Lemminkäinen’s net sales andresult from April 2001.

INTERNATIONALISED ASPHALTPAVING BUSINESS

The acquisition of Icopal Roads inDenmark and Norway significantlystrengthened Lemminkäinen’s posi-tion in the asphalt paving markets ofthe Baltic Rim region, making it thesecond biggest paving contractor inthe Nordic countries. Lemminkäinennow has a 20 % share of the Danishpaving market and about 17 % share

of the Norwegian market, and theCompany employees over 500 peoplein these countries. About 50 % ofLemminkäinen’s asphalt paving oper-ations are now located outsideFinland.

IMPROVED EARNINGS

Lemminkäinen’s result before taxesimproved 33 % and was EUR 61.7million (46.4). The Group’s operat-ing profit rose 39 % to EUR 69.7million (50.2). The improvement inearnings was due to the performanceof the Paving and Mineral AggregatesDivision, Lemminkäinen Construc-tion Ltd and Tekmanni Oy.

CHANGING BUSINESSENVIRONMENT

The strong growth of the Finnishconstruction market that had lasted

for a number of years came to an end,dropping to less than 1 % in 2001.The construction market is expectedto develop moderately, though futuregrowth is now subject to more uncer-tainty than in past years.

Several years of steady growth andfavourable earnings developmenthave left Lemminkäinen reasonablywell placed to meet the challenges ofthe current year. Lemminkäinen’s netsales may not grow at last year’s rate,but the Company still has everychance of turning in another goodresult this year.

DIVIDEND

The Company’s Board of Directorswill propose to the Annual GeneralMeeting that a dividend of EUR 1.10(0.84) per share be paid for the 2001accounting period.

KEY FIGURES 2001 2000 Change, %Net sales EUR million 1 117 965 16Profit before taxes EUR million 62 46 33Return on investment % 23.0 20.7Equity ratio % 41.7 36.9Earnings per share EUR 3.23 1.72 88Dividend per share EUR 1.101) 0.84 31Gross investments EUR million 94 72 30Order book EUR million 441 451 -2Average number of employees 6 311 4 487 41

Lemminkäinen has about 17 % share of the Norwegian asphalt paving market. Paving work in progress on Highway E6 near Oslo.

1) Board of Directors’ proposal to the AGM

2

lemminkäinen group

lemminkäinen corporation annual report 2001

PAVING AND MINERAL AGGREGATES DIVISION

LEMMINKÄINEN CORPORATION

GROUP STRUCTURE

LEMMINKÄINEN CONSTRUCTION LTD

BUILDING MATERIALS DIVISION

OY ALFRED A. PALMBERG AB

TEKMANNI OY

The Division produces asphalt, recycled asphaltmacadam and specialist paving. It carries out con-tracting in the fields of road paving, milling and roadmarking as well as quarrying and crushing. TheDivision also produces ready-mix concrete and min-eral aggregates as well as environmental geotechnol-ogy products and services.

The Division manufactures and imports a range ofbuilding products, and carries out contracting relat-ed to these materials. The main product groups arebituminous roofing materials, pre-cast concrete andnatural stone products, and materials used in theconstruction of sports facilities.

Lemminkäinen Construction Ltd is an internation-al building project and telecommunications networkcontractor. In Finland the company is a leading civ-il engineering contractor specialising in rock engi-neering, foundation construction and major infra-structure projects. The company is also well knownas a builder of production plants, office buildingsand sports facilities.

The Palmberg Group is a building contractor oper-ating nationwide in Finland. Palmberg’s businessareas include competitive tender contracting of bothnew and refurbishment work as well as private-sec-tor housing, commercial and industrial develop-ments.

Tekmanni Oy operates in the fields of technicalbuilding and facility services, industrial installationsand maintenance, and telecommunications networkconstruction. Commercial, industrial, public andresidential apartment buildings are typical construc-tion and maintenance sites. The company’s telecom-munications network contracting services includethe construction of base stations and city networks.

lemminkäinen corporation

paving and mine-ral aggregates

division

lemminkäinenconstruction ltd

oy alfred a.palmberg ab tekmanni oy

building materials division

OTHER LARGER GROUP COMPANIES

Oka Oy, KouvolaLemminkäinen Norge AS, Fjellhamar, NorwayOy Konte Ab, VaasaLemminkäinen A/S, Silkeborg, DenmarkRakennustoimisto Palmberg Oy, TamperePalmberg-Urakoitsijat Oy, HyvinkääPalmberg-Rakennus Oy, OuluPalmberg TKU Oy, TurkuKvalitetsasfalt i Mellansverige Ab, Sala, SwedenRakennus-Otava Oy, JyväskyläByggnads Ab Forsström Rakennus Oy, KokkolaSavocon Oy, KuopioOmni-Sica Oy, HelsinkiLemcon Networks Ltd, HelsinkiForssan Betonituote Oy, ForssaTielinja Oy, Janakkala

The Lemminkäinen Group operates in all sectors of the construc-tion industry: civil engineering, building contracting, technicalbuilding services and the manufacture of building materials andrelated contracting.The Group’s main markets are in the Baltic Rim region.Lemminkäinen is the second biggest asphalt paving contractor in the Nordic countries and operates in selected project exportmarkets worldwide.The Lemminkäinen Group’s net sales in 2001 were EUR 1 116.5million, of which exports and operations abroad accounted for 18 %. Profit before taxes was EUR 61.7 million. The average number of employees in the Group was 6 311. Lemminkäinen was founded in 1910 and its share has been listed on HelsinkiExchanges since 1991.


EUR million2001 2000 Change, %

Net sales 326.7 233.0 40.2Operating profit 36.6 25.6 43.0Net investments 64.8 23.6 174.6Order book 47.0 42.9 9.6


Net sales 160.3 165.0 -2.8Operating profit 10.5 4.9 114.3Net investments 0.8 2.4 -66.7Order book 124.7 107.1 16.4


Net sales 387.5 452.8 -14.4Operating profit 12.4 14.7 -15.6Net investments 2.7 7.7 -64.9Order book 177.4 217.5 -18.4





% of Group net sales

28.6 %

7.9 %

14.0 %

33.9 %

15.6 %

4

lemminkäinen’s strategy


MEANS

Risk management

The differing cyclical behaviour ofLemminkäinen’s business sectors rep-resents the strategic cornerstone of itsgroup structure. For example, thecivil engineering business helps tooffset the effects of the building con-struction sector’s cyclical nature.Moreover, the demand for manyproducts in the building materialsand technical building services sec-tors is not dependent on the cyclicalnature of new construction. Cyclicalfluctuations in domestic new con-struction are also evened out by bothrefurbishment contracting and oper-ations abroad.

The Company focuses on proj-ects for which it has sufficient resour-ces and expertise. In addition, projectrisks are kept under control by nottaking on individual projects of suchmagnitude that their failure couldessentially weaken the Group’s result.

Lemminkäinen continuouslymaintains the vigilance and respon-siveness necessary to reorient, developand adjust its business operations inthe face of changing market condi-tions. The Company ensures thiscapability by employing efficient man-agement and information systems.

Competitiveness

Lemminkäinen concentrates on busi-ness sectors with sufficiently largemarkets in which it commands lead-ing or at least significant positions.Examples include asphalt paving, in

which the Company is one of theleading actors on the Baltic Rim mar-ket; Palmberg’s regional subsidiaries,which have significant positions intheir local markets; and roofing con-tracting and tunnel excavation, inwhich Lemminkäinen units are lead-ing actors in their respective fields inFinland.

Lemminkäinen avoids excessive-ly labour-intensive business sectorswhere the market entry thresholdand value added are particularly low.

Lemminkäinen’s operationsabroad are based on special expertiseand the establishment of local sub-sidiaries capable of achieving a sig-nificant market position.

Lemminkäinen employs andactively develops special products,techniques and expertise to improveits competitiveness and to generateadded value for its clients. Theseinclude special asphalts, special foun-dation reinforcement techniques, dif-ferent kinds of excavation techniques,structural tensioning methods, andproject management expertise.

Lemminkäinen’s business con-tains vertical value-adding chainsthat produce internal synergies.Products are manufactured for bothown use and external customers. Theproducts of the Mineral AggregatesUnit are a typical example: not onlyare they used in Lemminkäinen’sown asphalt paving operations andready-mix concrete production, butthey are also sold to other industryactors or end-users. Similarly, prod-ucts of the Building MaterialsDivision are sold to external cus-tomers and used in the building con-tracting of Palmberg and Lemmin-käinen Construction Ltd.

There is also horizontal synergybetween the Company’s differentbusiness units. This enables Lem-minkäinen to enhance its marketingand provide its clients with a betterand more comprehensive service.

GOAL

Lemminkäinen’s key strategic goal isthe maintenance of good profitabili-ty and solvency as well as controlledgrowth in the Company’s presentbusiness sectors. An average returnon investment of 15 % over the busi-ness cycle is regarded as good prof-itability, and an equity ratio of 40 %is equated with good solvency.

Asphalt plant

Mobile asphalt plant

Crushing plant

The acquisition of Icopal Roads’ asphaltpaving and mineral aggregate businessessignificantly increased Lemminkäinen’soperations in the Nordic countries. Inaddition to the locations shown on themap, the Company has 25 crushingplants in Finland.

5

review by the managing director


GROWTH AND PROFITABILITY

Lemminkäinen’s improving earningstrend has continued for the seventhstraight year. Over the same periodthe Group’s net sales have tripled atan average annual rate of 17 %. Theconstruction sector’s sustainedupswing from an exceptionally lowlevel has undoubtedly been a factorin the background to this growth.Even so, Lemminkäinen’s growth hasbeen well above the industry averageand the Group’s profitability hasbeen representative of the very bestin the sector. Also by internationalstandards Lemminkäinen hasenjoyed a good measure of success.

The Group’s net sales in 2001rose 16 % to EUR 1 117 million. Theprofit before taxes items improved 33% and was EUR 62 million – the bestresult in the company’s history. Mostof the net sales growth came fromacquisitions. With the exception ofthe domestic building contractorPalmberg, all of the Group’s mainbusiness sectors improved their earn-ings. Palmberg’s net sales and resultdeclined slightly owing to weakeneddemand and planning delays affect-ing certain important projects.

STRATEGIC CONSISTENCY

Lemminkäinen’s strategy, which isbased on the management of risksand the improvement of competi-tiveness by structural means, hasproven to be effective. The acquisi-tion of the technical building servic-es contractor Tekmanni Oy at theend of 2000, and the purchase ofIcopal a/s’s asphalt paving operationsin Denmark and Norway at thebeginning of 2001 were both madein accordance with this strategy.

Demand for technical buildingand facility services is growing morequickly than other segments of theconstruction sector, and it is notdirectly dependent on the cyclicalnature of domestic building con-struction. There is clear synergybetween Tekmanni and Lemmin-käinen’s other businesses. Tekmanniis one the leading Finnish companiesin its field.

The Icopal deal ensured Lem-minkäinen’s position as one of theleading asphalt paving contractors inthe Baltic Rim region. As expected,integration of the acquired business-es into Lemminkäinen’s internation-al paving and mineral aggregate oper-ations has required a great deal ofhard work, but good progress hasbeen made. Also in this case both theacquirer and the acquired have hadsomething to learn from each other.

CONTINUOUS R&D

Continuous R&D is the hallmark ofa healthy company. In Lemmin-käinen most of the developmentwork is carried out in connectionwith production by the same peoplewho will apply the results in practice.I am delighted to report that signifi-cant developments and improve-ments were achieved during thereview year in areas such as productsand methods, personnel matters,administrative systems, quality,industrial safety, and environmentalissues. In my opinion the growth ofLemminkäinen’s human and otherintangible capital has been on thesame level as the growth in our busi-ness volume.

MARKET CHANGES

The boom in domestic building con-struction that had lasted for a num-ber of years came to an end when theengine of that growth, the telecom-

munications and electronics indus-try, no longer required any addition-al building space. This was alsoreflected quickly in the demand forprivate-sector housing. The changein the market occurred abruptly dur-ing the early summer.

The volume of building construc-tion in 2002 is expected to be onlyslightly lower than last year. The fore-cast is largely based on a number offavourable general indicators such aslow inflation, low interest rates, fur-ther migration to growth centres, andthe confidence of households in theirown finances and in the prospects ofgeneral economic recovery.

Forecasts of steady demand forrefurbishment work, urban environ-ment construction and sports-relat-ed construction as well as expecta-tions of increased investments inroad construction all bode well forLemminkäinen. Road building andrepaving appropriations are alsoexpected to rise in Denmark andNorway, as their present level is notsustainable in the long run.

The overall outlook for Lemmin-käinen in 2002 is reasonably good,although there are more factors ofuncertainty than we have becomeaccustomed to in recent years. Thegrowth of the Group’s net sales islikely to slow down.

THANKS

Lemminkäinen has faired well infavourable business conditions. TheCompany’s ability to react to chang-ing market conditions has been pur-posefully maintained and developed.I would like to thank Lemmin-käinen’s personnel for their fine workand also our other stakeholdergroups for their co-operation andconfidence.

Managing Director Juhani Sormaala

6 lemminkäinen corporation annual report 2001

Lemminkäinen is the asphalt paving market leader in Finland and thesecond biggest in the Nordic countries. The paving of Helsinki-VantaaAirport’s third runway was the most important contract of the year.


paving and mineral aggregates division

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The Paving and Mineral Aggregates Division produces asphalt,

recycled asphalt macadam and specialist paving. It carries out

contracting in the fields of road paving, milling and road marking

as well as quarrying and crushing. The Division also produces

ready-mix concrete and mineral aggregates for resale, as well as

environmental geotechnology products and services. Head of Paving and Mineral AggregatesDivision Mr. Matti Kokko, B.Sc.(Eng.)

The Division’s net sales were EUR326.7 million (233.0). Net sales inFinland rose 2 % to EUR 204.3 mil-lion (200.4). Net sales from opera-tions abroad were up 275 % at EUR122.4 million (32.6). Exportsaccounted for 37 % (14) of theDivision’s net sales.

The reason for the growth in netsales from operations abroad was theacquisition of Icopal Roads’ asphaltand mineral aggregate operations.This acquisition boosted Lemmin-käinen’s share of the Danish andNorwegian markets.

The Division’s operating profitwas EUR 36.6 million (25.6). Theaverage number of employees in2001 was 2 044 (1 369).

ASPHALT PAVING AND ROAD MARKING

Lemminkäinen’s 90 productionplants produced 3.9 million tonnes(2.7) of asphalt in the Baltic Rimregion. The Company is the marketleader in Finland and the secondbiggest in the Nordic countries. Thegrowth in volume occurred abroad,mainly in Norway and Denmark.

The net sales of the Paving Unitwere EUR 268.4 million (174.9), of

which operations abroad accountedfor 45 % (18).

In Finland the prolonged down-ward trend in public road paving vol-umes came to an end. On the otherhand, orders from local authoritiesand the private sector fell slightly dueto the unfavourable development ofbuilding construction.

In Finland Lemminkäinen’sasphalt production volumesremained at the previous year’s level.The most important contractsincluded the paving of Helsinki-Vantaa Airport’s third runway and arepair contract at Oulu Airport. Salesof paving-related ancillary productsas well as environmental geotechnol-ogy products and services continuedto grow. The biggest contract in thelatterly mentioned business area wasthe construction of Joutseno landfillcomposting depot.

The acquisition of Icopal Roadsin March 2001 gave Lemminkäinena significant foothold in theNorwegian paving market andstrengthened its position inDenmark. The price level inDenmark and Norway was healthierthan in the previous year, but theDanish business suffered due toslacker general demand. In Sweden,paving contracting was expanded

EUR mill.2001 2000

Asphalt paving androad marking 271.6 178.8Mineral aggregates andready-mix concrete 63.8 63.0

Internal invoicing - 8.7 - 8.8Total 326.7 233.0

NET SALESBY BUSINESS AREA

EUR mill.2001 2000

Net sales 326.7 233.0Operating profit 36.6 25.6Net investments 64.8 23.6Employees 2 044 1 369

EUR mill.

NET SALES


The runway at Oulu Airport was repaired in September 2001.

A new environmentally friendly asphalt plant was opened in Helsinki.

paving and mineral aggregates division

into new areas and new productswere introduced.

In Estonia the price level ofpaving contracts was depressed inmany places, but the order book for2002 is better than usual thanks tothe company winning a number oflarge contracts. In Latvia, sales grewlargely on the back of good demandin the private sector. In Lithuania thecompany succeeded in increasingsales in the Vilnius and Klaipeda eco-nomic areas. In Russia the mostimportant contract was the asphaltpaving of Omsk airport in westernSiberia.

The average number of employ-ees in 2001 was 1 598 (934). TheHead of the Unit is Mr. MattiKokko, B.Sc. (Eng.).

The net sales of Lemminkäinen’sroad marking contractor, Tielinja Oy,were EUR 3.2 million (3.9), ofwhich operations abroad accountedfor 50 % (34). The most importantexport contracts were road markingworks carried out for the nationalroad administrations of Sweden andEstonia. The Managing Director ofTielinja Oy is Mr. Harri Linnakoski,B.Sc. (Eng.).

MINERAL AGGREGATES ANDREADY-MIX CONCRETE

Demand for mineral aggregates wasexceptionally good at the beginningof the year, but it peaked in the sum-mer and especially in the late autumnwas lower than in the previous year.

There were two significant rea-sons for the decline in demand.

Crushing orders from the RoadAdministration were down by sever-al million tonnes and mineral aggre-gate deliveries associated with build-ing construction fell as a consequenceof reduced activity in that sector. Theindustry’s overcapacity and theefforts of foreign-owned companiesto increase their market shares keptthe price level depressed all year.

A total of 13.9 million tonnes(13.6) of crushed aggregate was pro-duced and the net sales from mineralaggregate operations were EUR 55.5million (55.9). The average numberof employees in 2001 was 303 (295).

The most important mineralaggregate projects included crushingcontracts for the Lapland RoadDistrict as well as mineral aggregatedeliveries to various rail track centres,Pori Airport and the Highway 2 con-struction site.

The Head of the MineralAggregates Unit is Mr. Juhani Inna-nen, B.Sc.(Eng.).


Forssan Betonituote Oy supplied concrete to the site of Helsingin Energia’s cold store at Salmisaari. The facility is part of a larger contractbeing carried out by Lemminkäinen Construction Ltd for the energy company.

Production volumes of ready-mixconcrete fell especially in HelsinkiMetropolitan Area and other growthcentres as a consequence of thedecline in building construction. Theprice level of ready-mix concrete wasdepressed. In spite of these adversefactors, Forssan Betonituote Oyexceeded its production and net salesfigures for the previous year.

Forssan Betonituote acquired fullownership of Itä-Suomen Valmis-betoni Oy during the review year,and the company was reorganised tobetter meet future requirements. Thecompany’s capacity was almost fullyutilised. The most important con-tract in 2001 was the delivery of con-crete to Tornio steel mill.

Forssan Betonituote produced166 000 m3 (105 000) of concrete andits net sales were EUR 8.3 million(6.8). The Managing Director of thecompany was Mr. Jari Stenberg up to31st August 2001 and Mr. AnttiHujanen, B.Sc.(Eng.), thereafter.

RESEARCH ANDDEVELOPMENT

Lemminkäinen’s Central Laboratoryperformed development work andtechnical services for the Group’s var-ious units and companies. Most ofthe Central Laboratory’s develop-ment work was related to asphalttechnology, with the main focus ondifferent types of pavements, struc-tures suitable for groundwater pro-tection applications, and the reuse ofcontaminated soil. The average num-ber of employees in 2001 was 14(13). The Head of R&D is Mr. LarsForstén, M.Sc.(Eng.).

POSITIVE OUTLOOK

The rise in domestic road paving vol-umes that began in 2001 is expectedto continue in the years ahead. Thedemand situation in the pavingindustry has been abnormally low inthe Baltic Rim region. However,there are now signs that the industry’smarkets are recovering in the Nordic

and Baltic countries. In Russia thedeveloping economy holds out hopefor growth in the asphalt paving busi-ness.

The demand for mineral aggre-gates and ready-mix concrete closelyfollows changes in the volume ofbuilding construction. The majorroad and rail track building projectsthat are now starting will raisedemand in both business areas.


Lemminkäinen is Finland’s leading roofingcontractor. Bituminous roofing was installed onLidl’s distribution warehouse in Janakkala.



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NET SALES

Lemminkäinen Corporation’s Building Materials Division

manufactures bituminous roofing materials, concrete-based

urban environment products, precast concrete stair units, and

terrazzo flooring. The Division also imports building boards and

products used in the construction of sporting facilities and urban

environments. A design and installation service covering all of

these products enables Lemminkäinen to provide its customers

with turnkey solutions. Head of Building Materials Division Mr.Ari Junttila, M.Sc.(Eng.)

All of the Division’s production plantsand most of its contracting servicesare certificated to the ISO 9000 stan-dard. Environmental managementsystems have been prepared for theDivision’s various operations and theircertification is currently in hand. Thethreatening shortage of qualifiedlabour has been addressed by focusingon training. Amongst other initia-tives, Lemminkäinen has been active-ly involved in organising professionaltraining for potential recruits.

The capacity utilisation rate ofproduction plants and contractingwas high, but delivery times were stillkept short. The Division’s productionplants are located in Tuusula, Orimat-tila, Lohja, Viitasaari and Myrskylä.

The net sales of the BuildingMaterials Division were slightly upthe previous year at EUR 89.9 mil-lion (87.2). The Division’s operatingprofit remained at the previous year’slevel and was EUR 5.4 million (5.2).

The average number of employees inthe review year was 646 (654).

ROOFING MATERIALS ANDCONTRACTING

Lemminkäinen is Finland’s leadingroofing contractor. The Roofing Unithas 15 locations in Finland as well asservice points in Tallinn and St.Petersburg, enabling material salesand contracting throughout Finlandand its neighbouring countries.

The Lohja bituminous roofingfactory was modernised in the 1990sto raise efficiency and quality, and toimprove the environmental friendli-ness and safety of production. Gascleaning equipment was installed inthe autumn to minimise processodours by recovering and recyclingthe hydrocarbon compounds con-tained in the plant’s waste gases. Dustemissions have been minimised andsite traffic significantly reducedthanks to earlier investments.

A three-year training projectcame to an end during the autumnat the Lohja factory. As a result of thisproject the first maintenance profes-sionals completed their training. Thefirst roofer’s course was arranged incollaboration with the labour author-ities and a vocational training schoolin order to recruit new roofing work-ers. A continuation course is plannedfor this spring. Those employees ofthe Roofing Unit who completed thetraining course for waterproofing sys-tem fitters were presented with pro-fessional certificates.

Sales of roofing materials devel-oped positively: in spite of a generalmarket decline, sales were up both inFinland and abroad. The mostimportant export markets for roofingmaterials were Russia, Sweden, South

EUR mill.2001 2000

Roofing 54.0 55.0Concrete products 27.1 25.5Sports construction 8.8 6.7Total 89.9 87.2

NET SALESBY BUSINESS AREA

EUR mill.2001 2000

Net sales 89.9 87.2Operating profit 5.4 5.2Net investments 2.0 1.7Employees 646 654

EUR mill.


A natural stone wall built for Helsinki’s Islamic congregation.


Korea and Norway. The capacityutilisation rate of the Lohja factorywas almost optimal during the pro-duction season, and there were noproblems with the operation of theproduction plant.

The main products of the RoofingUnit are bituminous and tiled roofs,but its services cover all kinds of roof-ing work. Altogether about 1.2 mil-lion square metres of roof surface werecompleted during the contracting sea-son. The most important contractsincluded the head offices of NokiaCorporation and Radiolinja in theKeilalahti district of Espoo andGigantti’s warehouse in Lappeen-ranta. The Roofing Unit was recog-nised when the Finnish RoofingAssociation selected the clay tile roofof Laune church in Lahti, whichLemminkäinen had completed in2001, as Roof of the Year.

Competition in roofing contract-ing was fierce throughout the wholeseason.

The net sales of the Roofing Unitwere EUR 54.0 million (55.0). Theaverage number of employees in 2001was 391 (393). The Head of the Unitis Mr. Ari Junttila, M.Sc.(Eng.).

CONCRETE AND NATURALSTONE PRODUCTS ANDURBAN ENVIRONMENT

CONSTRUCTION

Sales of pre-cast concrete stair unitsdropped by more than 10 % fromthe year 2000 level due to thereduced volume of building con-struction. However, demand at theend of the year had stabilised at theyear-end level of the previous year.Production resources were adjusted

to bring them into line with demand. A number of terrazzo and natural

stone contracts were completed in2001. Among the most important ofthese were the Iso Omena and Myllyshopping centres in Espoo and Raisio,where a considerable amount of ter-razzo and limestone flooring was laid.

Urban environment constructionincreased considerably from the levelof the previous year, and sales of urbanenvironment products made of con-crete grew by 5 %. The use of naturalstone in urban environment con-struction has increased especially intown and city centres. The high qual-ity of Lemminkäinen’s work onTilketori square in the Malmi suburbof Helsinki was singled out for partic-ular praise by the city’s building office.Significant intra-Group collabora-tions included the Monikonpuro con-tract in Espoo with LemminkäinenConstruction Ltd and works begun inthe autumn in the centre of Raahewith the Paving Unit.

The enlargement of the open-airdisplay area for urban environmentproducts in Tuusula was completed

Lemminkäinen has been manufacturing stairs for over 90 years. Ville Tuunanen assemblinga precast stair unit.


Laune church’s clay tile roof, which was built by Lemminkäinen in 2001, was chosen as Roof of the Year.

in the spring. Lemminkäinen’s urbanenvironment products were alsoprominently displayed at theMarketanpuisto exhibition in Espoo.Palmberg’s subsidiary Oy KokkobeAb made a successful start to its salesof Lemminkäinen’s urban environ-ment products in Ostrobothnia.

The net sales of the ConcreteProducts Unit were EUR 27.1 mil-lion (25.5). The average number ofpersonnel in 2001 was 196 (207).The Head of the Unit is Mr. JuhaniUljas, M.Sc.(Eng.).

SPORTS CONSTRUCTION

Omni-Sica Oy is primarily a special-ist importer, supplier and contractorof sports-related products and sys-tems. The range of products and con-tracting services offered by the com-pany’s includes sports surfacings andunderlays, spectator stands, wateringsystems, fences and waterproofingsystems.

Investments in sport and athleticshave increased significantly inFinland in recent years. Omni-SicaOy has strengthened its position asFinland’s leading supplier and con-

tractor of sports surfacing systems.The company’s contracting capacitywas fully utilised in the 2001 season.

Deck coating contracting for theshipbuilding industry began in thespring of 2001. The first deck coat-ings were made at Masa Yards’ Turkushipyard on the Eagle III cruise ship.A movable spectator stand was alsoinstalled in the ship’s ice hall auditori-um.

Sports construction will contin-ue to be brisk in 2002. The use ofmore environmentally friendly andsolvent-free products and methods insports field surfacing will increase inthe future. The company has alreadybegun to study these products andtheir applications.

The company’s net sales wereEUR 8.8 million (6.7). The averagenumber of employees in 2001 was 38(26). The Managing Director of thecompany is Mr. Pekka Peho.

OUTLOOK FOR THECOMING SEASON

Most of the Division’s businesses aredirectly tied to the development ofconstruction generally, and no sig-

nificant change in the cyclical state ofthe sector is anticipated during 2002.

The outlook for the Roofing Unitin 2002 is somewhat uncertain, as theexpected decline in new constructionwill impact on the roofing marketand depress the price level. However,the volume of refurbishment work isexpected to be higher than last year,increasing the demand for roofingcontracting in this sector. The out-look for the Unit’s export markets isstill good, and efforts will be made tofurther boost exports in 2002. Salesof pre-cast concrete stair units aredirectly tied to new construction, andtheir production is expected to fallslightly. On the other hand, demandfor urban environment products isforecast to continue growing, and fullcapacity utilisation is expectedthroughout the production season.

The number of sports construc-tion projects will grow strongly.Omni-Sica Oy’s order book alreadyreaches long into the summer, prom-ising continued growth for the com-pany and a favourable outlook for theseason.


The world’s first four-boom datajumbo drilling rig is operatedby drillers Hannu Kuivalainen and Martti Kauppinen.


lemminkäinen construction ltd

020406080

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97 98 99 00 01

NET SALES

Lemminkäinen Construction Ltd specialises in international

construction projects. Over the past thirty years the company has

gained experience from projects on five continents. In recent years the

main focus of the company’s business has been in Europe, but with the

growth of its telecom network operations the importance of the Far

East and last year America has also grown. Lemcon Networks Ltd is the

company’s subsidiary specialising in network-related operations.

In Finland, Lemminkäinen Construction Ltd has consolidated its

position as a civil engineering contractor and as a project

management company in industrial, office and sports construction. Managing Director of LemminkäinenConstruction Ltd, Mr. Matti A. Mantere,M.Sc.(Eng.)

The year under review was a success-ful one for the company. The net salesof Lemminkäinen Construction Ltdwere EUR 160.3 million (165.0) andits operating profit EUR 10.5 million(4.9). The average number of employ-ees in 2001 was 459 (497), of whom294 (326) were salaried staff.

CIVIL ENGINEERING

Net sales from civil engineering con-tracting were EUR 56.5 million(62.7).

The Civil Engineering Unit offersa full range of civil engineering serv-ices in Finland and abroad. Thedemand for these services as a wholeremained quite good throughout theyear, although there were wide varia-tions between different sectors. Thecompany further strengthened itsposition as a specialist contractor ofrock engineering and foundationbuilding works. In spite of tensions on

the civil engineering market, theresult for the unit remained good.

Significant works carried out dur-ing the year included the repair of a20-kilometre-long section of thePäijänne water supply tunnel, con-struction of Botniabanan AB’s railwaytunnel in Sweden, jet grouting rein-forcement of the foundations of theNational Theatre in Helsinki, andcompression pile reinforcement of thefoundations of a commercial block in

Turku city centre. Larger project enti-ties included underground parkingfacilities in Helsinki, Tampere andTurku, and a direct railway linebetween the cities of Kerava and Lahtiin Southern Finland.

The Kelukoski power plant proj-ect was completed in Sodankylä dur-ing the autumn.

The average number of employ-ees in 2001 was 258 (289). The Headof the Unit is Mr. Timo Kohtamäki,Lic.(Tech.).

PROJECT MANAGEMENT

Net sales from project managementcontracting were EUR 88.3 million(102.3).

Nokia Corporation has beenLemminkäinen Construction Ltd’smost important project managementclient for a number of years.Construction of production andR&D facilities for Nokia has provid-ed the company with work both inFinland and elsewhere in Europe.The review year was a successful onefor project management contractingat home and abroad. Experiencegained from demanding construc-tion projects for the telecommunica-tions and electronics industry hasbeen successfully utilised in otherareas too.

EUR mill.2001 2000

Civilengineering 56.5 62.7Project management 88.3 102.3Telecom Network Const.15.5Total 160.3 165.0

NET SALES BY BUSINESS AREA

EUR mill.2001 2000

Net sales 160.3 165.0Operating profit 10.5 4.9Net investments 0.8 2.4Employees 459 497

EUR mill.

The geographical and operational scope of telecom network construction grew in 2001.Projects were carried out in countries as far afield as Brazil.


Lemminkäinen Construction Ltd’s contract for Nordea’s office building in the Valliladistrict of Helsinki was chosen as Environmental Project of the Year.

lemminkäinen construction ltd

The most important project inFinland was Nordea’s new officebuilding in Helsinki. Phase I of theproject was completed and phase IIstarted during the review year. Othermajor projects included FosterWheeler’s bio-power plant in Ääne-koski and Finland’s first Bauhaushome-improvement centre in Vantaa.Sports construction projects includedgolf courses and sports arenas. SakuHall was completed in Tallinn andconstruction work began on a largemultipurpose hall in Hamburg.

The focus in exports remained onEurope. In Germany, work began ontwo projects for Nokia, one of which,an R&D centre in Ulm, will be com-pleted this spring. In Poland andHungary production facilities werebuilt for Elcoteq. Stora Enso’s papermill construction project in Belgium,which began at the end of the year, isthe latest in a series of mill construc-tion projects managed by Lemmin-käinen since the early 1980s. Nomajor projects have yet begun inRussia or the Baltic States, althoughthere are now more potential investorsthan earlier. In Russia a few minorprojects were carried out for interna-tional clients. In China the companywas involved in the construction of

Nokia’s biggest mobile phone plant.Projects are also underway inVietnam.

The average number of projectmanagement personnel in 2001 was146 (194). Domestic operations andsports construction are the responsi-bility of Mr. Jouko Niemonen,B.Sc.(Eng.). Mr. Henrik Eklund,

M.Sc.(Eng.) is responsible for projectmanagement exports.

TELECOM NETWORKCONSTRUCTION

Net sales from telecom network con-struction were EUR 15.5 million (Inthe year 2000 comparable net saleswere included in those of the ProjectManagement Unit).

Lemminkäinen Construction Ltdhas engaged in telecom network con-struction since 1996. At the end ofthe year 2000 these operations weretransferred to Lemcon Networks Ltd,a subsidiary set up especially for thatpurpose.

The geographical and operationalscope of telecom network construc-tion grew in 2001. Projects were car-ried out in eight different countries inthe Far East, Europe and theAmericas. The size of the contractsvaried from consultance assignmentsto turn-key projects, and the contentof works covered the whole spectrumof mobile phone network construc-tion from design to the installation

The construction of multipurpose halls continued. Saku Hall in Tallinn was completed in September 2001.


and start-up of base stations. Lemcon Networks has collaborat-

ed with many other companies oper-ating in the sector all over the world.In the summer the company signedan agreement with the US companyNorthStar Communications Groupconcerning the construction of wire-less networks in the United States.

The number of telecom networkproject employees grew in 2001 andwas about 200 at the end of the year(the number of employees in 2000 isincluded in the figure for the ProjectManagement Unit). The employeesare of about 20 different nationalities;less than a third of them are Finns.

The Managing Director ofLemcon Networks Ltd is Mr. JuhaNurmi, M.Sc. (Eng.).

FUTURE OUTLOOK

Despite the likelihood of lessfavourable market conditions, Lem-minkäinen Construction Ltd’s goodorder book and strong market posi-tion give the company a reasonablygood starting point for the current

year. The company’s order book at theend of 2001 was EUR 124.7 million(107.1).

The market situation for civilengineering looks slightly weakerthan in 2001. Fewer new projects arein hand than in the previous year.The market situation will also be sig-nificantly influenced by the reorgan-isation of the Finnish RoadAdministration (Finnra), which hasalready led to a considerable increasein both the size of contracts and theresponsibilities of contractors. TheFinnish Road Enterprise has won 80% of the big turn-key projects putout to tender, which has increasedcompetition for contracts in the tra-ditional size class. Already at the endof 2001 this unhealthy competitionwas reflected in the financial difficul-ties experienced by smaller civil engi-neering contractors. On the otherhand, the effects of the changeprocess currently underway have notbeen entirely negative for the sector.Larger entities have been accompa-nied by new contact forms such as

full-liability contracts and projectmanagement construction.

Good preconditions exist forproject management contractingboth in Finland and abroad.However, the reduction in invest-ments by Nokia Corporation repre-sents a significant change in thedemand situation. The experiencegained from Nokia contracts coupledwith expertise in different fields willenable the company to continue serv-ing both Finnish and internationalclients as a construction partner.

The outlook for telecom networkconstruction is good. The first 3Gprojects have begun in Europe andAsia. A number of 2.5/3G projectswill be carried out in North andSouth America over the next fewyears. In 2002 Lemcon Networkswill strive to develop and expand itsoperations mainly in its present mar-ket areas.


Palmberg Group’s Oka Oy is one of the biggest building contractors insoutheast Finland. Surveyor Matti Ravantti on the site of Kouvola’s newcourt house and police building.


oy alfred a. palmberg ab

050

100150200250300350400450500

97 98 99 00 01

NET SALES

The Palmberg Group’s business area is building construction,

which includes competitive tender contracting of both new

building and refurbishment work as well as private-sector

housing, commercial and industrial developments. In addition to

this, the subsidiary Oy Konte Ab operates as a building contractor

in the Umeå region of Sweden and two others manufacture ready-

mix concrete and concrete products in Ostrobothnia. Managing Director, Mr. Risto Bono,M.Sc.(Econ.), M.Sc.(Eng.)

The Palmberg Group consists of theparent company, Oy Alfred A.Palmberg Ab, and its nine regionallyoperating subsidiaries. The numberof subsidiaries grew by one duringthe review year, when Palmbergacquired a majority stake in theTurku-based company TKU-Raken-nus Oy. At the same time it wasdecided that the company wouldmerge with the Group’s SouthwestFinland Unit to form Palmberg TKUOy. The Group’s subsidiaries alsohave three other actively operatingsubsidiaries.

The Group’s net sales were EUR387.5 million (452.8), representing

a 14.4 % decrease in business vol-ume. The value of the order book atthe end of the accounting period fellto EUR 177.4 million (217.5). Thegroup’s operating profit was EUR12.4 million (14.7).

The net sales of the PalmbergGroup in the metropolitan area areproportionately smaller than those ofother similarly sized constructioncompanies. Especially in southeastFinland and Ostrobothnia the

Group’s subsidiaries are among thebiggest actors in their field. TheGroup’s proportional share is signifi-cant in the Tampere area as well.

The operations of the parentcompany in the metropolitan area areprimarily concerned with own hous-ing and commercial developments,whereas the subsidiaries derive mostof their net sales from contracting.Oka Oy, which specialises in façaderenovation work also and operates allover southern Finland, is the excep-tion to Palmberg’s regional organisa-tion.

The results of all of the Group’sunits were at least satisfactory, withthe exception of the Tampere-basedsubsidiary Rakennustoimisto Palm-berg Oy, which once again made aloss. Its losses stem from misappro-priation of funds that first came tolight towards the end of the previousyear. The full extent of this miscon-duct was not determined until dur-ing 2001.

The number of own residentialdevelopment apartments completedby the Group was 752 (718). At theend of the accounting period, 456(718) own development apartmentswere under construction. New apart-ments completed under competitivetender contracting totalled 1 124

EUR mill.2001 2000

Competitive tender contractingHousing 69.6 82.5Other new const. 92.9 103.7Refurbishment work 60.0 57.5

DevelopmentsHousing 59.8 87.8Commercial andindustrial buildings 44.3 39.2

Other business 9.1 10.6Sales of shares andother items 51.8 71.3Total 387.5 452.8


EUR mill.2001 2000

Net sales 387.5 452.8Operating profit 12.4 14.7Net investments 2.7 7.7Employees 1 522 1584

EUR mill.


Palmberg has built four housing blocks and a parking facility at Kivenlahti in Espoo.

Larsmo school and dental clinic was completed in 2001.

(1 691), and 824 (1 081) apartmentswere under construction at the endof the accounting period.

The average number of employ-ees in the Group during the account-ing period was 1 522 (1 584), ofwhom 501 (487) were salaried staff.

OUTLOOKFOR 2002

The demand for new building con-struction is expected to decline gen-erally in 2002. This is likely to occurprimarily in the commercial andoffice building sector. Lower interestrates, continuing migration togrowth centres, good incomes devel-opment and resilient household con-fidence support a satisfactory outlookfor residential construction. Thenumber of new starts may even rise.Public-sector housing production isexpected to decline generally, but inthis case too the situation maychange if the proposed amendmentsto loan terms are implemented. Thebuilding refurbishment market islikely to continue growing steadily.This growth will embrace small-scalerepair work as well as larger buildingconversion or refurbishment con-tracts for housing companies, espe-cially comprehensive façade renova-tion projects.

Tougher price competition isexpected in competitive tender con-tracting. If contract prices do fall,most of the reduction will be due tolower input prices but it may alsomean that margins have been cut.

The Palmberg Group’s ownhousing developments are expected

to remain at or slightly below the2001 level. This is not due to anydemand factors but to the scarcity ofsuitable building land. The introduc-tion of Finland’s new land use andconstruction laws, among other fac-tors, has turned out to be a bigger-than-expected obstacle to securing orchanging the urban planning statusof land owned by the Group. In par-ticular, progress through the differ-ent stages of the appeals procedure ismuch slower than had been antici-pated.

Moreover, planning issues con-cerning a number of commercial andoffice building sites have held up thecommencement of work. However,it is expected that it will be possibleto make a start on some of thesedelayed sites in 2002. This will, ofcourse, depend on how the demandsituation develops in the earlymonths of the year.

oy alfred a. palmberg ab


MOST IMPORTANTCOMPLETED CONTRACTS

- Stella Business Park – IV and finalphase, Espoo, 10 000 m2

- Nokia Peltola, phase II, Oulu(consortium), 6 800 m2

- Orbis Oy’s office building, Vantaa,9 000 m2

- Tohtoritalo building extension,Turku, 8 000 m2

- Tambest Group’s production facil-ities and office building, Pirkkala,6 250 m2

- Kainuu Brigade’s central ware-house, Kajaani, 67 000 m3

- Larsmo school and dental clinic, 5 400 m2

- Alholma power plant, Pietarsaari(consortium)

- Refurbishment of ÖrnsköldsvikHospital, Sweden

- 108-unit rental building for VVO,Tampere

MOST IMPORTANTCONTRACTS IN PROGRESS

- Portaali Business Park’s officebuilding (10 600 m2) and AV college (6 200 m2), Helsinki(consortium)

- Trivium Business Park, phase I,Turku (consortium), 8 600 m2

- Nokia Peltola, phase III, Oulu(consortium), 8 500 m2

- Refurbishment of Ahlström Oyj’shead office, Helsinki

- Kouvola court house and policebuilding, 17 000 m2

- Vaasa police building, 13 000 m2

- Kouvola logistics centre, 15 000 m2

- Finnoo school and day-care centre, Espoo, 7 300 m2

- Sanoma Oy’s printing hall building, Vantaa, 52 500 m3

- Foster Wheeler Energia Oy’s pow-er plant, Äänekoski (consortium)

- Refurbishment of KannelmäenKiinteistöt Oy’s 163-unit apart-ment block, Helsinki

- 110-unit rental building forTapiola Insurance Group,Tampere

PALMBERG GROUP

Company Region Net sales Personnel Managing Director EUR mill. (average) Regional Director

PARENT COMPANY

Oy Alfred A. Palmberg Ab 84.8 (114.0) 265 (322) Risto Bono, M.Sc.(Eng.), M.Sc.(Econ.)

Metropolitan Area Unit Helsinki metropolitan area Regional Director Pauli Mäkelä M.Sc.(Eng.)

Southwest Finland Unit 1) Turku, Salo and surrounding municipalities Regional Director Mikko Pirhonen M.Sc.(Eng.)

SUBSIDIARIES

Palmberg TKU Oy 2) Turku, Salo and surrounding munic. 9.1 (5.9) 20 (20) Mikko Pirhonen M.Sc.(Eng.)

Palmberg-Urakoitsijat Oy Western Uusimaa 37.8 (32.0) 34 (36) Ahti Kara M.Sc.(Eng.)

Oka Oy Lahti, Kymenlaakso and S-Karelia 94.0 (93.6) 389 (321) Jorma Tamminen B.Sc.(Eng.)

Rakennustoimisto Palmberg Oy Tampere and southern 40.6 (59.9) 211 (304) Jukka Terhonen M.Sc.(Eng.)

central Finland

Rakennus-Otava Oy Jyväskylä and neighbouring munic. 15.0 (15.2) 61 (55) Jussi Kari B.Sc.(Eng.)

Oy Konte Ab 3) Ostrobothnia, Southwest Finland, 53.4 (51.8) 253 (254) Göran Pellfolk M.Sc.(Eng.)projects in Sweden

Byggnads Ab Forsström Rakennus Oy 4) West coast region 19.1 (26.9) 145 (121) Peter Forsström B.Sc.(Bus.)

Palmberg-Rakennus Oy Provinces of Oulu and Lapland 31.2 (48.3) 99 (120) Ahti Heikka B.Sc.(Eng.)

Savocon Oy Kuopio and surrounding areas 12.7 (11.1) 65 (51) Martti Kankkunen B.Sc.(Eng.)

1) Oy Alfred A. Palmberg Ab aquired a majority interest in TKU-Rakennus Oy on 31st October 2001, whereuponthe functions of the Southwest Finland Unit and TKU-Rakennus Oy merged to form Palmberg TKU Oy.2) Figures for the whole accounting period 1st January – 31st December 2001.3) Also includes the Swedish company Rekab Entreprenad Ab.4) Also includes Ab Jakobe Oy and Oy Kokkobe Ab.


Tekmanni won a major air-conditioning contract for theIso Omena shopping centre in Matinkylä Fitter AfrimKrasniqi checks the cleanliness of a ventilation duct.


tekmanni oy

180

160

140

120

100

80

60

40

20

097 98 99 00 01

NET SALES

Tekmanni Oy offers the full range of technical building and facility

systems and services as well as solutions and services related to

telecommunications networks and industrial installations and

maintenance. Tekmanni’s service network covers the whole of

Finland from about 30 different locations. The company resumed

exports to Russia and the Baltic States during the review year. Managing Director, Mr. Antero Huhta,B.Sc.(Eng.)

The review year was a good one forTekmanni. The company’s net saleswere EUR 178.0 million (139.9),and its operating profit was EUR 6.0million (4.9). The growth of net saleswas above the industry average. Thevalue of the order book at the end ofthe accounting period was EUR 78.5million (71.2). The average numberof employees in the company during2001 was 1 640 (1 416), of whom378 (325) were salaried staff.

Tekmanni’s business manage-ment project proceeded to phase II,during which the financial adminis-tration systems already in service willbe linked to new material control sys-tems. Work began on up-grading thequality management system certifi-cated to the ISO 9002 standard tomeet the requirements of the newISO 9001 standard.

TECHNICAL BUILDINGSERVICES

The company offers the full range oftechnical building services. Duringthe review year Tekmanni strength-ened its position as a full-service sup-plier of HVACE, sprinkler, cooling,fire protection, telecommunications,security, data and automation sys-tems. An energy measurement sys-tem developed by Tekmanni for busi-ness premises was added to the com-

pany’s service concept. The mostimportant projects of the TechnicalBuilding Services unit were carriedout in commercial and office build-ings.

The value of the Finnish marketfor technical building servicesremained at the year 2000 level andwas about EUR 2.9 billion. Thebuilding refurbishment marketdeveloped more favourably than newconstruction.

Tekmanni’s Technical BuildingServices unit grew strongly. Its netsales were EUR 123.7 million(100.7). Refurbishment workaccounted for about 40 % of net sales.

TECHNICAL FACILITYSERVICES

The Technical Facility Services unitspecialises in servicing and maintain-ing the technical services of existingbuildings and facilities on the basis ofcomprehensive maintenance agree-ments that support clients in the life-cycle management of their buildingsand facilities. The unit also carriesout modernisation and conversionworks on existing technical systems.During the review year the unitintroduced new expert services focus-ing on the condition assessment oftechnical systems.

EUR mill.2001 2000

Technical building serv.123.7 100.7Technical facility serv. 19.8 11.4Industrial installations 32.2 24.9Telecom. networks 1.8 2.5International operations 0.5 0.4Total 178.0 139.9


EUR mill.2001 2000

Net sales 178.0 139.9Operating profit 6.0 4.9Net investments 1.2 0.5Employees 1 640 1 416

EUR mill.


tekmanni oy

The unit expanded its business tosix new locations during the reviewyear. The main aim in customer rela-tions was to make maintenanceagreements, taking account of thefacility’s entire life cycle, on the basisof partnership.

The net sales of the TechnicalFacility Services unit rose 76 % toEUR 19.8 million (11.4).

INDUSTRIALINSTALLATIONS AND

MAINTENANCE

The key services of the IndustrialInstallations and Maintenance unit areprocess electrification and automationinstallations. The unit provides serv-ices to meet the needs of the forest,basic metals, chemical, food and pow-er production industries.

Industrial investments were at ahigh level during the review year,especially in the forest industry. Inthe chemicals and power productionindustries the emphasis was onprocess modernisation.

Tekmanni increased its marketshare in industrial process electrifica-tion and automation installations.Business efficiency was improvedthanks to the quality managementsystem and the TEK-PRO projectmanagement system developed bythe company.

The net sales of the IndustrialInstallations and Maintenance unitwere EUR 32.2 million (24.9). Netsales are expected to develop favou-rably also in 2002.

TELECOMMUNICATIONSNETWORKS

The services of the Telecommuni-cations Networks unit include LANsfor individual facilities, industrialnetworks, city networks and nation-

wide networks. Tekmanni deliversGSM, GPRS and UMTS base sta-tions complete with equipmentspaces and link installations.

In outdoor network deliveriesTekmanni’s biggest contracts wererelated to expansions of GSM net-works. In base station constructionthe company switched from turnkeydeliveries to different types of systemdeliveries and installation contracts.

The indoor network market grewover 10 %. Growth was as big in allsegments of the market: data transfernetworks, fire protection, burglaralarm, access control and CCTV sys-tems. Tekmanni developed its opera-tions as a integrator of different tele-communications and security systems.

INTERNATIONAL OPERATIONS

The timing of Tekmanni’s exportstart-up was most opportune. TheRussian market recovered as expect-ed, and the St. Petersburg subsidiaryhad a full order book all year. In addi-tion to St. Petersburg, Tekmanni hassubsidiaries in Moscow, Tallinn andVilnius.

Tekmanni supplied the sprinkler system for the Mylly shopping centre in Raisio. The compa-ny also carried out the building’s electrical contract.

Boiler electrification and instrumentation works were carried out for Jämsänkosken Voima Oy.


OUTLOOK

The technical building services mar-ket is likely to remain at last year’slevel in 2002. Tekmanni’s order bookis the biggest in the company’s histo-ry, and the starting points for the cur-rent year are good. Tekmanni’sTechnical Building Services unit isexpected to maintain the marketposition that it has achieved. As com-mercial and office building declines,the unit’s services will be orientedmore towards refurbishment work.

This year Tekmanni will focus ontechnical facility services and indus-trial installations and maintenance.The growth of refurbishment workwill also open up new markets fortechnical facility services. The out-sourcing of facility maintenance serv-ices will increase.

The outlook for the industry isgood. No major projects are expectedin the forest sector, but the forestindustry will continue its papermachine rebuilds in 2002. Invest-ments in new power plants and in thebasic metals industry will also con-tinue.

Telecommunications networkconstruction is currently goingthrough a transitional stage, asnationwide fixed network construc-tion has come to almost completehalt. The switch to UMTS construc-tion will not gather momentum untilthe second half of 2002.

The outlook for Tekmanni’sexports to Russia has improved andthe order book is growing.

LAST YEAR’S BIGGESTCONTRACTS

Technical building services

- Airport Plaza Business Park,Vantaa; full installation of techni-cal services

- Iso Omena shopping centre,Espoo; air conditioning

- High Tech Center, Helsinki;plumbing and electrical works

- P-Turku car parking facility,Turku; HVACE and sprinklerworks

- Dynamo Business Park, Tampere;full installation of technical services

Tekmanni carried out the plumbing and electrical works for the fifth office building of Helsinki’s High Tech Center.Partnership with HTC continues in system maintenance.

Technical facility services

- High Tech Center, Helsinki;maintenance contract

- Construction Establishment ofFinnish Defence Administration;Tikkakoski; electrical and ITinstallations

Telecommunications networks

- Telia; Expansion of GSM network- Fortum Oyj, Loviisa nuclear pow-

er plant; modernisation of firealarm system

Industrial installations and maintenance

- Oy Alholmens Kraft Ab,Pietarsaari; bio-power plant;HVAC works

- Finforest Oy, Punkaharju mill;electrification

- Fortum Oyj, Sköldvik refinery;modernisation works

International operations

- BAT-Rothmans tobacco factory,St. Petersburg; HVAC contract


risk management

Lemminkäinen’s risks are dividedinto six categories: market risks, proj-ect risks, financing risks, credit lossrisks, environmental risks, and acci-dents and damage.

MARKET RISKS

The most significant of Lemmin-käinen’s market risks is the cyclicalnature of new construction. This riskis managed by structural means andoperational preparedness. Unlikemost other construction companies,the structure of the LemminkäinenGroup is such that only about a halfof its business sectors are dependenton domestic building construction.Operationally, the Group countersmarket risks by maintaining the flex-ibility and responsiveness necessaryto adjust quickly to changing marketconditions.

PROJECT RISKS

Building contracting is essentially arisky business. The building contrac-tor is always exposed the risk of esti-mated contract costs being exceeded.This risk is managed in three ways.

Firstly, business is oriented sothat the average contract size is quitesmall. The net sales generally annual-ly from even the biggest of Lem-minkäinen’s contracts will not exceedabout 5 % of the Group total in anygiven year. This means that the fail-ure of an individual contract cannothave a major impact on the Group’sresult. Secondly, Lemminkäinen isselective when deciding on the proj-ects for which it will submit tenders.The Company does not tender forprojects when it does not possess thenecessary resources or previous expe-rience. Thirdly, special attention iscontinuously paid to project man-agement and its development.

The sales risk associated withown housing and commercial devel-opment is controlled by not startingsuch developments without advancemarketing and the receipt of suffi-

cient reservations. Unplanned landor building rights are not acquiredfor future use without carefully plan-ning when construction can start andwho could be the site’s users andowners.

FINANCING RISKS

All significant corporate or businessacquisitions are evaluated criticallyfrom the perspectives of their cashflow and impact on the balancesheet.

The Group hedges againstInterest rate and foreign exchangerisks in the conventional ways. Thematurities of seasonal credit stem-ming from the nature of Lemmin-käinen’s business are short, whilethose of other borrowings are mostlylong. Receivables denominated inforeign currencies and the share cap-ital of foreign subsidiaries are hedged.

CREDIT LOSSES

Lemminkäinen’s credit losses havealways been minimal in relation tothe scale of the Group’s operations.The main risks in this respect areassociated with business in Russia.As a general rule, construction proj-ects in Russia are only undertakenagainst receipt of advance payments.If a credit risk is accepted exception-ally, the amount permitted is alwayspredetermined in relation to theexpected margin on the project inquestion.

ENVIRONMENTAL RISKS

The environmental risks associatedwith the Group’s businesses areanalysed in advance. Risk assessmentand risk management are part of theGroup’s normal operations. Environ-mental risks are minimised by reduc-ing emissions and by improving thestorage and handling of oils and oth-er chemicals. The management ofenvironmental affairs and the effectsof the Group’s operations on theenvironment are continuously mon-

itored by means of internal checksand control programmes.

ACCIDENTS AND DAMAGE

The Group’s fixed assets are insuredagainst damage or loss in accordancewith the insurance policy approvedannually by the parent company’sBoard of Directors. Owing to theaccident-prone nature of construc-tion work, special attention is con-tinuously paid to the development ofindustrial health & safety.


environment

Environmental issues have beenembraced as an essential aspect ofmanagement, production and cus-tomer service in the LemminkäinenGroup’s business units. This com-mitment is demonstrated by thedevelopment of the Group’s businesssystems to meet the requirements ofthe ISO 14001 environmental man-agement system, by improvements inrisk management, and by invest-ments in environment protection.

Environmental management andsafety systems have been developedin connection with quality manage-ment or business systems, and theycover most of Lemminkäinen’s oper-ations. The ISO 14001 environmen-tal management certificate and theOHSAS 18001 occupational healthand safety certificate were awarded tothe Group’s asphalt paving opera-tions in Finland during the account-ing period. An environmental man-agement system conforming to ISO14001 was also brought into use incivil engineering contracting and inbituminous roofing production.Systems development work is cur-rently underway in building con-struction operations and in theConcrete Products Unit.

ENVIRONMENTALLYFRIENDLY ASPHALT

Finland’s first covered asphalt plantequipped with bituminous vapourrecycling equipment was broughtinto service during the review year.The new plant releases less dust,noise and odours into the environ-ment. Covered mineral aggregatestores that cause less dust were alsobrought into use at the asphalt plant.

The use of reclaimed pavementin the production of recycled asphaltmixes was further increased.Lemminkäinen produced about 1.5million m2 of Remix recycled asphaltpavements in 2001. In the produc-tion of recycled asphalt all the rawmaterial and energy content of the

reclaimed pavement can be fullyutilised.

Lemminkäinen stepped up theprocessing of contaminated soils. Amobile mixing plant was developedto treat soils contaminated with bothheavy metals and oils before theirfinal disposal.

Lemminkäinen was recognisedwhen its Paving Unit won the firstprize in an environmental protectionand safety competition organised bythe Finnish Asphalt Association.

ODOURS AND WASTESUNDER CONTROL

Environmental investments intend-ed to minimise production plantemissions were completed. Bitu-minous odour that had disturbed res-idents living near Lohja roofing fac-tory was brought under control byinstalling flue gas cleaning equip-ment. Vaporous bitumen is nowrecovered and reused in the process.

Following the start-up of theprocess water plant at Sammonmäkiconcrete products factory, designwork began on landscaping of the oldsludge area. Environmental protec-tion standards at Lemminkäinen’sroofing and concrete product facto-ries have been improved by procur-ing equipment for waste manage-ment and spillage containmentbasins for bulk chemicals.

Lemminkäinen’s product packag-ing and materials importing opera-tions are members of theEnvironmental Register of PackagingPYR Ltd, through which the organi-sation and implementation of prod-uct packaging recycling is assigned toproducer organisations of the pack-aging industry.

SYSTEMATIC APPROACH TOENVIRONMENTAL ISSUES

Lemminkäinen Construction Ltd’senvironmental management andenvironmental protection proceduresconforming to ISO 14001 were

linked to the company’s business sys-tems. The preparation of environ-ment management plans for projectswas incorporated into the processalready at the project planning stage.Environmental protection on siterequires actions such as waste sortingand the control of waste volumes andcosts. The introduction of newequipment enabled the use of envi-ronmentally friendly oils in rockengineering works. The company’senvironmental protection work wasrecognised when its Nordea officebuilding contract was selected as theEnvironmental Project of the Year.

Palmberg’s environmental pro-tection procedures in building con-struction and materials procurementwere linked to its quality manage-ment systems. Site-specific environ-mental plans that take greater acc-ount of environmental risks includemeasures to reduce and control wastevolumes and emissions. On-site envi-ronmental protection is also sup-ported by the company’s procure-ment procedures.

Tekmanni Oy introduced a life-cycle model to the calculation oftechnical building system and prod-uct costs.

ENVIRONMENTAL TRAINING

The focus of environmental trainingfor the Group’s personnel is on envi-ronmental risk management as wellas the development and introductionof environmental management sys-tems. Most of the environmentaltraining takes place in connectionwith safety and quality training.

OPEN DISCUSSIONS WITHSTAKEHOLDERS

Environmental issues related to theCompany’s operations are dealt withopenly in co-operation with differentstakeholders. Meetings with residentswere arranged at the Company’s pro-duction plants and in the vicinity ofrock engineering and excavation sites.


research and development

The companies and business units ofthe Lemminkäinen Group are inde-pendently responsible for their ownresearch and development, most ofwhich occurs in connection with dif-ferent construction projects. TheCentral Laboratory supports theseindependent efforts by carrying outR&D at Group level. Lemmin-käinen’s R&D input represents, onaverage, 0.4 % of the Group’s netsales. Almost all of the business unitshave certificated ISO 9000 qualitymanagement systems. Environment-al management and/or safety systemsare being prepared in many units,and the first of these have alreadybeen certificated.

BENEFITING CUSTOMERS AND THE

ENVIRONMENT

Many of Lemminkäinen’s R&Dprojects in 2001 had environmentalthemes. Environmental risks or pol-lution were studied and environ-mental protection products and serv-ices were developed. A number ofprojects concerning the service life

and life cycle of products were under-way in 2001.

Lemminkäinen maintains closecontact with vocational schools offer-ing training in the construction field.The aim of this collaboration is toensure the future supply of profes-sionally qualified personnel and toopen up an important recruitmentchannel.

The high level of activity main-tained over recent years in tradition-al technical development work con-tinued in 2001. The aim of this workis to ensure the Lemminkäinen’sproducts, methods and servicesremain productive, competitive andinteresting for customers.

Most of Lemminkäinen’s R&Dwork is performed in close collabo-ration with customers. Test buildingand on-site trials are an importantpart of development work. Many ofthe Group’s business units have takenpart in the sector’s joint research proj-ects, e.g. different technology pro-grammes of the National TechnologyAgency (TEKES).

SILENT ASPHALT, HARD STONE

The internationalisation of Lem-minkäinen’s asphalt paving operationshas strongly influenced R&D.Synergy for business operations andbetween products and services hasbeen sought through benchmarkingstudies and research collaboration.Finland gained a new product fromDenmark: Confalt – a very resilientcomposite pavement. Efforts aremade to exploit Lemminkäinen’sexpertise in polymer-modified bitu-men technology and environmentalprotection structures in the Group’sasphalt paving companies abroad.New noise-reducing pavement struc-tures are also being developed.

Mineral aggregate processingcapacity and technology has beendeveloped to produce durable andhard stone for asphalt and railways.Road marking services have beenimproved by developing new prod-ucts such as profile markings.

NEW PRODUCTS

The life cycle and service life of bitu-minous roofs have been clarified in

The focus of Lemminkäinen’s R&D is on the performance characteristics of asphalt pavements.Laboratory technician Janne Junnilainen with an asphalt sample.


different studies. Also the possibilitiesof recycling old bituminous roofingand the wastes of the roofing materi-al factory has been studied.

New natural stone and concreteproducts were developed for wall andcladding applications. New flexiblesurfacings were developed for tenniscourts, playgrounds and ship decks,and new polyurethanes that are watersoluble and safe to handle were triedout in sports surfacing products.

HIGH-TECH TUNNELS

The most significant developmentwork in rock engineering concerneddrilling technology for tunnel excava-tions The world’s first four-boomdatajumbo drilling rig came into serv-ice in summer 2001. Its introductionwas preceded by production technol-ogy development work lasting about ayear. Shotcrete and its productiontechnology were improved to meetstricter quality requirements.

The R&D focus in foundationconstruction has been on the devel-opment of a deep-stabilisationmachine. In addition, piling tech-nologies and techniques have beendeveloped for repair works in con-nection with projects.

The Project Management Unit

has taken part in the "HealthyHouse" programme and its associat-ed pilot project. The whole conceptof developing and building multi-purpose halls has been formulated inthe so-called Arena project. Projectmanagement contracting has beendeveloped with the aid of academicdissertations and other studies. Thesestudies have often been done withclients, e.g. Nokia Corporation, inconnection with practical construc-tion projects.

MORE EFFICIENT BUILDINGCONSTRUCTION

Palmberg and Lemminkäinen’sBuilding Materials Division haveboth improved their capabilities inelectronic commerce and the use ofproject databanks. Palmberg has tak-en part in a concrete constructionprogramme led by the FinnishAssociation of Construction ProductIndustries. The material usage andquality of concrete moisture controlin industrialised concrete construc-tion, and the degree of prefabricationhave all been developed in the pro-gramme. The company also partici-pated in a refurbishment qualityassurance project.

Tekmanni Oy has been develop-ing a fully integrated project man-agement tool. The company’s ownproject management system has beenbrought into service. In addition, lifecycle calculation models have beendeveloped for technical buildingservices and work on their producti-sation has begun.

Lemminkäinen’s Central Lab-oratory actively participates and assistsin the R&D work of the Group’sunits. It also carries out product devel-opment assignments and tests.

Bitumen research is an important aspect of product development work on asphalt pavementsand bituminous roofing materials. Laboratory technician Outi Tihtonen at work.

Lemminkäinen is studying and developing new types of low-noise asphalt pavements. The Head of R&D, Lars Forstén, examines the pavement of a test road.


personnel

7000

6000

5000

4000

3000

2000

1000

500

097 98 99 00 01

PERSONNEL (AVERAGE)

Toni Heiskanen and Niko Ahlfors make bituminous roofing materials at Lemminkäinen’s Lohja factory.

Achievement of the Group’s goals issupported by personnel develop-ment. The availability of profession-al and motivated personnel has wors-ened in some of the Group’s businesssectors. The construction sector lacksappeal and this is reflected in thenumber of applicants for training.Lemminkäinen supports the expert-ise and fitness-for-work of its exist-ing personnel, and is actively engagedin recruiting young people studyingat different vocational schools.

The emphasis in personnel devel-opment is on vocational training thatleads to the award of a diploma.Business management training con-tinues on a sector-specific basis. Theinformation systems of the personneladministration function includetraining and expertise registers.

The organisational functionalityis measured by means of work atmos-phere and opinion surveys of the per-sonnel and customers. The develop-ment needs highlighted by these sur-veys is taken in consideration inorganisational development plans.

RECRUITMENT

The focus in recruitment is on youngpeople studying or completing theirstudies at vocational schools. A net-work of contacts has been build upwith such schools that meet the needsof the Group’s business sectors in dif-ferent parts of the country. Workguidance counsellors and initiatorshave been trained for the Group’s dif-ferent business sectors. Efforts arebeing made to develop the field’sdiplomas and teaching to meet pres-

ent-day needs and demand. Thebiggest improvement has been theopportunity to specialise in theasphalt field at vocational schoolsoffering training for drivers of con-struction vehicles.

FITNESS-FOR-WORK

Various events maintaining the fit-ness-for-work of employees and sup-porting their early rehabilitationfrom illness or injury were arrangedduring the review year. About 200employees from different personnelgroups took part in these events,which was well supported by theSocial Insurance Institution and anumber of pension insurance com-panies. More fitness-for-work eventswill be arranged in the future.

The physical exercise behaviourof all the employees was analysed bymeans of a questionnaire survey. Theresults of this survey were used toprepare an employee exercise pro-gramme, which will be introduced inspring 2002. The study was con-ducted in collaboration with theFinnish Fitness Sports Association


Laboratory technician Airi Leikas teststhe chippings of a bituminous sheet mem-brane in the Company’s CentralLaboratory.

and received significant support fromIlmarinen Mutual Pension InsuranceCompany and LEL EmploymentPension Fund.

VOCATIONAL TRAINING

The emphasis in vocational trainingis on studies that lead to the award ofa diploma. Experts from the Group’sdifferent fields have made an impor-tant contribution to the developmentof new professional diplomas both ascurriculum planners and as courseinstructors. The fruits of this workinclude vocational diplomas in thefields of civil engineering and roof-ing contracting.

The study group at Lohja factorycompleted a vocational maintenancediploma in accordance with earlierdiploma systems. The PalmbergGroup’s site personnel at differentlocations began studies leading tovocational and special vocationaldiplomas for building productionstaff.

FUNCTIONAL ORGANISATION

Feedback on organisational func-tionality was gathered using financialindicators, customer satisfaction sur-veys and internal values. All the unitsof the Group used this approach toanalyse their own operations. The

method has become a functionalorganisational development tool.The results were examined with thepersonnel of each organisation andkey development areas were definedon the basis of the results. The pro-cedure will be repeated at intervals of1-2 years, depending on the needs ofthe organisation.

PERSONNEL DEVELOPMENT

Personnel development is based onthe needs of the individual or theneeds of the business. The needs ofthe individual are analysed in con-nection with personal developmentdiscussions. About a hundred man-agers received training during theyear with the aim of making thispractice systematic. Training andexpertise files were created to supportdevelopment and the management ofresources.

Leadership development pro-grammes were carried out businessspecifically, mainly in the PavingUnit and in Tekmanni Oy.Altogether about 300 employeestook part in these programmes.

Paavo Kruut makes pre-cast concrete stair units at the Tuusula factory.


board of directors’ report

CONSTRUCTION MARKET

The strong growth of the Finnish con-struction market that had lasted for anumber of years came to an end, drop-ping from 6 % in the previous year toless than 1 % in 2001.

The volume of building construc-tion fell slightly. The volume of housingproduction declined over 10 % last yearand the number of new housing startswas about 29 000. Commercial andoffice building also followed the down-ward cyclical trend, whereas the build-ing volume of new starts in industrialand warehouse construction was about15 % up on the previous year. Therewas also a marked increase in construc-tion for the public services sector.

The volume of civil engineeringcontracting remained unchanged. Thevolume of asphalt paving contractingin Finland was flat at the previousyear’s level, whereas total demand forcrushed aggregate fell 5-10 %. The vol-ume of rock engineering workremained at the good level of the previ-ous year.

There was a marked rise in billingfor construction exports to just underEUR 700 million. In particular, therecovering Russian construction mar-ket boosted the foreign sales of Finnishbuilding companies.

NET SALES AND PROFITS

The net sales of the LemminkäinenGroup rose 16 % and were EUR1 116.5 million (964.6), of which oper-ations abroad accounted for EUR202.5 million (117.6) or 18 % (12).The improvement in the Group’s resultcontinued. The operating profit wasEUR 69.7 million (50.2), the profitbefore taxes EUR 61.7 million (46.4)and the profit for the accounting periodEUR 55.1 million (29.3). The returnon investment was 23.0 % (20.7), thereturn on equity 31.4 % (19.9) andearnings per share EUR 3.23 (1.72).

The profit for the accountingperiod was improved in part by the annulment of LemminkäinenCorporation’s reassessed taxation for theyear 1990 and the inclusion of a EUR15.2 million tax rebate in the incomestatement of the parent company.Denying the Finnish tax authoritiesleave to appeal, the Supreme Admin-istrative Court upheld Helsinki Admin-istrative Court earlier ruling in favourof Lemminkäinen.

The net sales of the Paving andMineral Aggregates Division were EUR326.7 million (233.0). The Division’soperating profit improved and wasEUR 36.6 million (25.6). The growthin net sales was mainly due to theacquisition of Icopal Roads, whichresulted in the Division’s net sales fromexports and operations abroad rising toEUR 122.4 million (32.6), i.e. 37 %(14) of total net sales. In addition tothe new asphalt paving markets, thefavourable earnings trend was influ-enced by improved cost effectivenessand higher sales of ancillary asphaltpaving products and geotechnical prod-ucts.

The acquisition of Icopal Roads’asphalt paving and mineral aggregateoperations in Denmark and Norwayhas affected the net sales and result forthe accounting period since the begin-ning of April. The first-quarter loss ofthese operations, which stems fromtheir seasonal nature, is not included inthe Division’s result. Goodwill amount-ing to EUR 37.5 million arising fromthe Icopal transaction will be writtenoff over 20 years, as the yield expecta-tions of the acquisition are good also inthe long term.

The net sales of the BuildingMaterials Division rose slightly to EUR89.9 million (87.2). The Division’soperating profit remained flat at theprevious year’s level and was EUR 5.4million (5.2). Sales of bituminous roof-ing materials and urban environmentproducts rose, whereas demand for pre-cast concrete stair units declined withthe fall-off in building constructionactivity.

The net sales of LemminkäinenConstruction Ltd fell slightly to EUR160.3 million (165.0). The company’soperating profit improved markedlyand was EUR 10.5 million (4.9). At the end of 2000 LemminkäinenConstruction Ltd set up LemconNetworks Ltd, a subsidiary specialisingin telecom network construction, tojoin its traditionally strong civil engi-neering and project management con-tracting businesses. Both the volumeand scope of telecom network con-struction grew strongly in 2001.Lemcon Networks Ltd’s net sales wereEUR 15.5 million.

The net sales of Oy Alfred A.Palmberg Ab, which specialises inbuilding contracting on the Finnish

market, fell to EUR 387.5 million(452.8). Palmberg’s operating profitwas also down on the previous year atEUR 12.4 million (14.7). The numberof new private-sector housing starts waslower than in 2000, mainly due to thescarcity of suitable building plots. Thenumber of own residential develop-ment apartments completed by thecompany was 752 units (718). Newapartments completed under competi-tive tender contracting totalled 1 124(1 691).

The technical building servicescontractor Tekmanni Oy was consoli-dated into the Lemminkäinen Groupin October 2000. The company’s netsales in 2001 were EUR 178.0 million(45.1) and its operating profit EUR 6.0million (1.8). Tekmanni’s full-year netsales in 2000 were EUR 139.9 millionand its operating profit EUR 4.9 mil-lion. Goodwill of EUR 28.4 millionfrom the Tekmanni acquisition will bewritten off over 10 years.

INVESTMENTS

The Group’s gross investments in fixedassets were EUR 94.0 million (72.4).The above-mentioned acquisitions inDenmark and Norway accounted formost of the investment total. Theremaining investments were primarilytargeted at paving, crushing and exca-vation equipment, production plant forbuilding materials, and building con-struction equipment.

The company sold its head officebuilding for EUR 19.3 million.

ORDER BOOK

The value of the Group’s uninvoicedorders at the end of the accountingperiod was EUR 440.7 million (451.1),of which operations abroad accountedfor EUR 66.4 million (37.9). Theincrease in orders from abroad was pri-marily attributable to the acquisition ofIcopal Roads.

FINANCING

According to the source and applica-tion of funds statement, the cash flowfrom business operations was EUR81.2 million (23.4) and the cash flowbefore financing EUR 25.1 million (-44.5). The net increase in outstandingloans was EUR 18.0 million (47.3)andinterest-bearing liabilities at the end ofthe accounting period were EUR 138.7million (120.6). Investments were


financed partly by selling equipmentand contract receivables to financecompanies. The increase in outstand-ing loans occurred mainly in theDanish and Norwegian subsidiaries andin the local currencies of these compa-nies. Liquid funds were EUR 48.0 mil-lion (33.1) and interest-bearing netdebt EUR 90.7 million (87.5). Netfinancing expenses were EUR 8.0 mil-lion (3.8), representing 0.7 % (0.4) ofnet sales. Dividends totalling EUR 14.3million (14.3) were paid. The equityratio was 41.7 % (36.9) and the gearingratio 44.1 % (54.0).

PERSONNEL

The average number of personnel in theGroup during the accounting periodwas 6 311 (4 487), of whom 1 952(1 507) were salaried staff and 4 359(2 980) hourly paid employees. Thenumber of employees at the end of theyear was 5 967 (5 439).

RESEARCH ANDDEVELOPMENT

The Group’s research and developmentexpenses were approximately EUR 4.5million, representing 0.4 % of net sales.The R&D emphasis in 2001 was onprojects with environmental themes.

GROUP STRUCTURE

The company set up a Norwegian sub-sidiary, Lemminkäinen Norge AS, tocarry out the business operationsacquired from Icopal a/s. The sharecapital of the new subsidiary is NOK35.0 million.

During the accounting periodLemminkäinen acquired full ownershipof Itä-Suomen Valmisbetoni Oy, aFinnish manufacturer of ready-mixconcrete. The company’s net sales in theprevious accounting period were EUR1.3 million.

At the end of the accounting periodLemminkäinen acquired a majoritystake in TKU-Rakennus Oy, a Finnishbuilding firm based in Turku. The com-pany’s net sales in the previous account-ing period were EUR 6.7 million.

The mineral aggregate subsidiariesStenberg-Yhtiöt Oy and Keski-SuomenSora Oy merged with LemminkäinenCorporation on 28th September 2001.

SHARES AND SHARE CAPITAL

The average listed price of Lemminkäi-nen Corporation’s share during the

accounting period was EUR 12.86(11.89). The year-end price of theCompany’s share was EUR 13.00(12.00) and the market capitalisationEUR 221.3 million (204.3). At the endof the year the Company had 1,843(1 720) shareholders. The trading vol-ume was 460 229 shares (1 185 415).

ADMINISTRATION

The Annual General Meeting of Lem-minkäinen Corporation was held on23rd March 2001. The Company’sBoard of Directors comprised Messrs.Heikki Pentti (Chairman), TeppoTaberman (Vice-chairman), Paul Blomqvist, Erkki J. Pentti and JuhaniSormaala.

The Managing Director of Lem-minkäinen Corporation is Mr. JuhaniSormaala.

The Company's auditors areMessrs. Jan Holmberg, A.P.A. andJarmo Alén, A.P.A. The deputy auditoris Authorised Public Accountants OyJoe Sundholm & Co. Ab, with KimKarhu, A.P.A. as the responsible audi-tor.

INVESTIGATIONS OF THECOMPETITION AUTHORITIES

IN SWEDEN AND NORWAY

The competition authorities in Swedenand Norway are investigating theirrespective asphalt paving industries dueto suspicions of activities violating com-petition legislation. In both countriesthe investigations encompass all rele-vant companies in the industry.

Lemminkäinen Corporation has amajority stake in the Swedish companyKvalitetsasfalt i Mellansverige Ab. Thecompany’s net sales are approximatelyEUR 20 million and its market share is about 4 %. The net sales of Lem-minkäinen’s Norwegian subsidiaryLemminkäinen Norge AS are roughlyEUR 45 million and its market share isabout 17 %.

Lemminkäinen is not in possessionof any information suggesting thateither of the above-mentioned sub-sidiaries has been involved in these sus-pected violations.

OUTLOOK FOR THE YEAR 2002

No essential change in the volume ofdomestic building construction isexpected to occur this year. Buildingconstruction is expected to decline by3-4 %, but demand for housing will

remain good. The number of newhousing starts is expected to rise. Thevolume of civil engineering contractingis also expected to rise slightly thanksmainly to major railway and road proj-ects starting this year. Constructionexports appear to be developingfavourably.

No significant changes are antici-pated in the markets of the Paving andMineral Aggregates Division. Demandfor asphalt paving contracting isexpected to rise slightly in the BalticRim region and in Russia. TheDivision’s net sales are expected toremain flat and its profitability to con-tinue at the present good level.

The development of the BuildingMaterials Division’s net sales will belargely determined by the total volumeof building construction. The Division’snet sales are not expected to rise signif-icantly in a declining market, but itsresult is expected to remain at a goodlevel.

Lemminkäinen Construction Ltd’sgood order book and strong marketposition provide the company with agood starting point for the current year.No specific growth targets have beenset for the company’s net sales. Its prof-itability is likely to remain good.

The upward trend of Palmberg’snet sales that had lasted for several yearscame to an end in 2001. The scarcity ofbuilding plots will continue to limitprivate-sector housing production, anda decline in commercial and office con-struction also looks likely this year.Nonetheless, Palmberg’s net sales areexpected to remain flat at last year’slevel. The company is not expected toimprove its result in light of the presentoutlook.

It appears that the technical build-ing services market will remain stable in2002. Tekmanni’s good order book andthe outlook for its business sectors sug-gest that the company can maintain itsnet sales and result at last year’s level.

The development of the construc-tion market is now subject to moreuncertainty than before. However, sev-eral years of steady growth andfavourable earnings development haveleft Lemminkäinen reasonably wellplaced to meet the challenges of thecurrent year. Lemminkäinen’s net salesmay decline, but the company still hasevery chance of turning in anothergood result this year.

consolidated income statement

EUR 1 000 EUR 1 000Note 1.1.2001 – 31.12.2001 1.1.2000 – 31.12.2000

NET SALES 1.1 1 116 550 964 558

Increase (+) or decrease (-) in stocksof finished goods and work in progress 6 176 14 298Production for own use 495 479Other operating income 1.2 7 982 4 825

Materials and services 1.3 692 316 663 590Personnel expenses 1.4 244 358 170 157Depreciation 1.5 27 823 22 868Other operating expenses 97 031 77 363

OPERATING PROFIT 69 674 50 182

Financial income and expenses 1.6 -7 964 -3 827

PROFIT BEFORE TAXES 61 709 46 355

Indirect taxes 1.8 -4 052 -16 055Minority interests -2 596 -1 009

PROFIT FOR THE ACCOUNTING PERIOD 55 061 29 291



consolidated balance sheet

EUR 1 000 EUR 1 000Note 31.12.2001 31.12.2000

ASSETS

NON-CURRENT ASSETS 2.1 Intangible assets 2.1.1 43 825 7 163Goodwill on consolidation 2.1.2 29 847 32 515Tangible assets 2.1.3 110 283 119 918Holdings in affiliated undertakings 2.1.4 6 475 2 500Other investments 2.1.4 7 401 7 417

197 831 169 513CURRENT ASSETS 2.2 Inventories 2.2.1 145 190 137 208Non-current receivables 2.2.2 119 236Deferred tax asset 2.2.3 1 234 1 130Current receivables 2.2.4 163 247 157 955Investments 2.2.5 12 488 8 743Cash in hand and at banks 35 479 24 394

357 759 329 666

555 591 499 179

LIABILITIES

SHAREHOLDERS' EQUITY 2.3 Share capital 34 043 34 043Share premium account 5 750 5 750Revaluation reserve 105 119Retained earnings 100 029 85 329Profit for the accounting period 55 061 29 291

194 988 154 532

MINORITY INTERESTS 10 550 7 479

OBLIGATORY PROVISIONS 2.5 4 190 3 766

LIABILITIES 2.6 Deferred tax liability 2.6.1 14 754 14 011Non-current liabilities 2.6.2 103 486 102 800Current liabilities 2.6.3 227 623 216 592

345 862 333 403

555 591 499 179

EUR 1 000 EUR 1 0001.1.2001 – 31.12.2001 1.1.2000 – 31.12.2000

INCOME FINANCING Operating profit 69 674 50 182Depreciation 27 823 22 868Financial income and expenses -7 964 -3 827Taxes -2 788 -18 171Total 86 744 51 052

CHANGE IN NET WORKING CAPITAL Increase (-) or decrease (+) in inventories -7 982 -22 650Increase (+) or decrease (-) in advances against work in progress 3 273 -4 652Increase (-) or decrease (+) in current receivables -5 226 -32 763Increase (+) or decrease (-) in interest-freecurrent liabilities 4 437 32 378Total -5 498 -27 687

CASH FLOW FROM BUSINESS OPERATIONS 81 246 23 365

INVESTMENTS Investments in fixed assets -93 978 -72 421Disposal of and other changes in fixed assets 37 837 4 523Total -56 141 -67 898

CASH FLOW BEFORE FINANCING 25 105 -44 533

FINANCING Increase (-) or decrease (+) in non-current receivables 117 -8Increase (+) or decrease (-) in non-current liabilities 686 43 535Increase (+) or decrease (-) in current liabilities 3 745 19 056Distribution of dividend -14 314 -14 314Others -507 3 417Total -10 273 51 686

INCREASE OR DECREASE IN LIQUID FUNDS 14 831 7 153Liquid funds at 1.1. 33 136 25 983

LIQUID FUNDS AT 31.12. 47 968 33 136


consolidated statement of source and application of funds


EUR 1 000 EUR 1 000Note 1.1.2001 – 31.12.2001 1.1.2000 – 31.12.2000

NET SALES 1.1 268 253 265 537

Increase (+) or decrease (-) in stocks of finished goods and work in progress 3 405 2 374Production for own use 138 43Other operating income 1.2 2 084 3 553

Materials and services 1.3 136 437 139 709Personnel expenses 1.4 65 796 63 283Depreciation 1.5 8 891 8 384Other operating expenses 29 129 27 897

OPERATING PROFIT 33 628 32 233

Financial income and expenses 1.6 -4 274 -2 092

PROFIT BEFORE APPROPRIATIONS AND TAXES 29 354 30 141

Appropriations 1.7 2 410 2 245Direct taxes 1.8 5 934 -9 367

PROFIT FOR THE ACCOUNTING PERIOD 37 698 23 019

parent company income statement


parent company balance sheet

EUR 1 000 EUR 1 000Note 31.12.2001 31.12.2000

ASSETS

NON-CURRENT ASSETS 2.1 Intangible assets 2.1.1 1 539 1 790Tangible assets 2.1.3 66 935 55 761Holdings in group undertakings 2.1.4 155 334 158 571Holdings in affiliated undertakings 2.1.4 1 274 1 262Other investments 2.1.4 5 582 5 653

230 664 223 037CURRENT ASSETS 2.2 Inventories 2.2.1 29 738 24 624Non-current receivables 2.2.2 119 136Current receivables 2.2.4 33 885 30 710Investments 2.2.5 12 138 3 262Cash in hand and at banks 1 179 1 525

77 060 60 256

307 724 283 293

LIABILITIES

SHAREHOLDERS' EQUITY 2.3 Share capital 34 043 34 043Share premium account 5 675 5 675Revaluation reserve 105 119Retained earnings 69 890 61 169Profit for the accounting period 37 698 23 019

147 409 124 025

APPROPRIATIONS 2.4 18 499 18 307

LIABILITIES 2.6 Deferred tax liability 2.6.1 2 126 2 132Non-current liabilities 2.6.2 46 086 70 519Current liabilities 2.6.3 93 604 68 310

141 816 140 961

307 724 283 293

EUR 1 000 EUR 1 0001.1.2001-31.12.2001 1.1.2000-31.12.2000

INCOME FINANCING Operating profit 33 628 32 233Depreciation 8 891 8 384Financial income and expenses -4 274 -2 092Taxes 5 934 -9 367Total 44 179 29 158

CHANGE IN NET WORKING CAPITAL Increase (-) or decrease (+) in inventories -5 114 -1 862Increase (+) or decrease (-) in advances against work in progress -53 -379Increase (-) or decrease (+) in current receivables -3 176 -6 229Increase (+) or decrease (-) in interest-free current liabilities -4 131 -3 360Total -12 474 -11 830

CASH FLOW FROM BUSINESS OPERATIONS 31 705 17 328

INVESTMENTS Investments in fixed assets -26 730 -61 153Disposal of and other changes in fixed assets 10 212 3 086Total -16 518 -58 067

CASH FLOW BEFORE FINANCING 15 187 -40 739

FINANCING Increase (-) or decrease (+) in non-current receivables 17 29Increase (+) or decrease (-) in non-current liabilities -24 433 41 216Increase (+) or decrease (-) in current liabilities 29 478 10 934Distribution of dividend -14 314 -14 314Others 2 596 63Total -6 657 37 928

INCREASE OR DECREASE IN LIQUID FUNDS 8 531 -2 810Liquid funds at 1.1. 4 786 7 596

LIQUID FUNDS AT 31.12. 13 317 4 786

parent company statement of source and application of funds



accounting principles

CONSOLIDATIONThe parent company, LemminkäinenCorporation, and all the group and af-filiated undertakings classified as in-vestments under non-current assets areincluded in the consolidated financialstatements.

Intra-group shareholdings havebeen eliminated using the past equitymethod, whereby the acquisition costof shares in subsidiary undertakingshas been eliminated against the share-holders’ equity of the subsidiary un-dertakings at the time of acquisition.The voluntary provisions and depreci-ation reserves of subsidiary undertak-ings at the time of acquisition less thedeferred tax liability are included inshareholders’ equity. Where the cost ofacquiring shares in a subsidiary under-taking exceeds the corresponding valueof its shareholders’ equity, the excess isassigned to fixed assets and/or goodwillon consolidation. The share assignedto fixed assets is depreciated in accor-dance with the depreciation plan forthe fixed asset item in question. Thedepreciation periods for goodwill onconsolidation are 5-20 years accordingto the plan in effect at the time of ac-quisition. A depreciation period oflonger than five years is applied tocompanies whose longer-term earningsexpectations are good, based on fac-tors such as strength of market posi-tion or good technical expertise intheir own areas of business.

Intra-group transactions and theinternal margin included in invento-ries have been eliminated in the con-solidated income statement, as have in-tra-group receivables, liabilities anddividend payments.

Minority interests have been de-ducted from the Group’s profit andshareholders’ equity and entered as aseparate item in the consolidated in-come statement and balance sheet.

The accounts of affiliated under-takings have been consolidated usingthe equity method, whereby, insteadof dividend income, the Group’s shareof the earnings of affiliated undertak-ings corresponding to its ownershipstake, less depreciation on goodwill, isincluded in the consolidated incomestatement. Correspondingly, theGroup’s share of the shareholders’ eq-uity of affiliated undertakings, includ-ing the tax liability, less the share ofvoluntary provisions and depreciationreserves, plus goodwill minus accumu-lated depreciation on goodwill, isrecorded as the value of the affiliatedundertakings on the consolidated bal-ance sheet.

FOREIGN CURRENCY ITEMSTransactions in foreign currencies arerecorded at the exchange rates ruling

on the date of the transaction.Receivables and liabilities denominat-ed in foreign currencies have been con-verted into Finnish marks at the ratesof exchange ruling on the last day ofthe accounting period.

Foreign currency receivables andliabilities protected by forward rateagreements are valued at the forwardrate, and the interest share is peri-odised on the basis of the duration ofthe agreements. Exchange rate differ-ences related to sales and purchases arerecorded as adjustments to the corre-sponding items. Exchange rate gainsand losses related to financing arerecorded as a net amount under finan-cial income and expenses.

When preparing the consolidatedfinancial statements, figures from thefinal accounts of foreign subsidiary un-dertakings have been converted intoFinnish marks at the exchange ratesruling on the last day of the accountingperiod. Translation differences arisingfrom eliminations of the shareholders’equity in foreign subsidiary undertak-ings have been recorded in sharehold-ers’ equity.

RECOGNITION OF INCOMEFROM CONSTRUCTION

PROJECTSThe consolidated and parent companyfinancial statements have been pre-pared in accordance with the percent-age-of-completion method, wherebyincome from construction projects isrecognised according to the degree ofproject completion. Although thecompleted contract method of incomerecognition is still used in the officialfinancial statements of subsidiary un-dertakings, they have prepared addi-tional financial statements based onthe percentage-of-completion methodfor the purpose of consolidation. Thedegree of project completion is calcu-lated as the ratio of actually incurredexpenses to estimated total expenses.The margin on Lemminkäinen’s owndevelopments is recognised as incomeon the basis of either the degree ofbuilding completion or the percentageof housing units sold, the lower valuetaking precedence. Anticipated lossesfrom unprofitable projects on the or-der book are recorded in total as ex-penses.

VALUATION ANDDEPRECIATION OF FIXED

ASSETSFixed assets are shown on the balancesheet at their original acquisition costsless accumulated annual planned de-preciation. In addition, the values ofsome land, buildings and sharehold-ings include revaluations, againstwhich no depreciation has beencharged.

Depreciation according to plan iscomputed using the straight-linemethod and is based on the economiclifetimes of the assets. The deprecia-tion periods are as follows:- Intangible rights

5 - 10 years- Goodwill and goodwill on

consolidation 5 - 20 years- Other capitalised expenditure

5 - 10 years- Buildings

10 - 40 years- Machinery and equipment

4 - 10 years- Mineral aggregate deposits

depreciation for decrease of substance- Others tangible assets

10 years

VALUATION OF INVENTORIESInventories have been valued accord-ing to the FIFO principle at their ac-quisition cost or, if lower, their new ac-quisition price or probable sellingprice. The value of inventories in-cludes the variable expenditure arisingfrom their acquisition and production.

VALUATION OF FINANCIALASSETS

Investments are valued at their acqui-sition cost or, if lower, their market val-ue.

PENSION LIABILITYPension security for employees of theGroup, inclusive of additional bene-fits, is covered by policies with pensioninsurance companies.

RESEARCH ANDDEVELOPMENT EXPENSES

R&D expenses are recorded in the yearduring which they are incurred.

LEASINGLeasing payments are recorded as an-nual expenses. The remaining rentalpayments of leasing contracts are pre-sented in the notes to the financialstatements under liabilities.

DIRECT TAXESTaxes calculated on the basis of the re-sults of group undertakings for the ac-counting period, adjustments to thetaxes of earlier accounting periods, andthe change in the deferred tax liabilityand asset are recorded as direct taxes onthe consolidated income statement.The deferred tax liability or asset is cal-culated for the timing differences be-tween taxation and accounting usingthe tax rate in force at the closing ofthe accounts. Confirmed losses thatare deductible against taxation aretreated as a tax asset to the extent thatthe Company will likely be able toutilise them in the near future.


1. INCOME STATEMENT

1.1 NET SALES AND OPERATING PROFIT

Net sales by business sector Paving and Mineral Aggregates Division 326 684 233 043 187 521 186 100Building Materials Division 89 922 87 170 78 152 77 254Lemminkäinen Construction Ltd 160 272 164 990 Oy Alfred A. Palmberg Ab 387 534 452 782 Tekmanni Oy 177 972 45 080 Intra-group sales / others -25 833 -18 507 2 581 2 183Total 1 116 550 964 558 268 253 265 537

Net sales by market areaFinland 914 039 846 986 261 152 256 674Nordic countries 127 221 39 572 1 507 2 650Eastern Europe 30 622 15 765 4 706 5 282Western Europe 30 834 53 272 218 169Asia and Latin America 13 834 6 534 670 762Africa 2 429 Total 1 116 550 964 558 268 253 265 537

Operating profit by business sector Paving and Mineral Aggregates Division 36 647 25 586 28 796 25 611Building Materials Division 5 405 5 155 4 832 5 159Lemminkäinen Construction Ltd 10 514 4 880 Oy Alfred A. Palmberg Ab 12 412 14 664 Tekmanni Oy 5 951 1 842 Group eliminations / others -1 257 -1 945 1 463Total 69 674 50 182 33 628 32 233

1.2 OTHER OPERATING INCOME

Profit on the sale of fixed assets 4 432 2 714 1 116 2 246Share of the results of affiliated undertakings 1 342 459 Others 2 207 1 652 968 1 307Total 7 982 4 825 2 084 3 553

1.3 MATERIALS AND SERVICES

Raw materials, consumables and goods Purchases during the accounting period 345 227 317 219 76 719 82 238Change in inventories 257 -6 734 -653 512

345 484 310 485 76 065 82 750External services 346 832 353 105 60 371 56 959Total 692 316 663 590 136 437 139 709

notes to the financial statements

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000

GROUP PARENT COMPANY


1.4 NOTES CONCERNING PERSONNEL, MANAGEMENT AND BOARD MEMBERS

Personnel expensesSalaries, wages and emoluments 199 552 135 147 53 061 50 525Pension expenses 30 168 23 291 8 758 8 705Other personnel-related expenses 14 638 11 719 3 977 4 053Total 244 358 170 157 65 796 63 283

Management salaries and emolumentsBoard members and managing directors 2 625 1 832 455 419

Average number of employeesSalaried staff 1 952 1 507 504 476Hourly paid employees 4 359 2 980 1 201 1 136Total 6 311 4 487 1 705 1 612

Average number of employees by business sectorPaving and Mineral Aggregates Division 2 044 1 369 1 096 984Building Materials Division 646 654 609 628Lemminkäinen Construction Ltd 459 497Oy Alfred A. Palmberg Ab 1 522 1 584Tekmanni Oy 1 640 383Total 6 311 4 487 1 705 1 612

1.5 DEPRECIATION

Intangible rights 523 413 223 185Goodwill 2 582 437 330 369Other capitalised expenditure 227 69 11 9Buildings 2 239 2 431 964 949Machinery and equipment 16 651 14 257 7 027 6 635Other tangible assets 1 416 804 336 237Depreciation of tangible and intangible assets 23 637 18 411 8 891 8 384Depreciation of goodwill on consolidation 4 186 4 457Total 27 823 22 868 8 891 8 384

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000



Pension commitments concerning board members and managing directorsThe retirement age of the managing directors of Lemminkäinen Corporation, Oy Alfred A. Palmberg Ab andLemminkäinen Construction Ltd is 60 years. The retirement age of the managing directors of other group undertakings isthe statutory retirement age.


1.6 FINANCIAL INCOME AND EXPENSES

Dividend incomeFrom group undertakings 201 309From others 351 237 315 165Total 351 237 516 474

Other interest and financial incomeFrom group undertakings 2 478 520From others 1 958 1 141 813 381Total 1 958 1 141 3 291 901

Interest expenses and other financial expensesTo group undertakings -1 430 -622To others -10 273 -5 205 -6 651 -2 845Total -10 273 -5 205 -8 081 -3 467

Net financial income/expenses -7 964 -3 827 -4 274 -2 092

Exchange rate differences (net) includedin financial income/expenses 394 189 342 -157

1.7 APPROPRIATIONS

Difference between depreciation according to plan and depreciation charged against taxation 2 410 2 245

1.8 DIRECT TAXES

Income taxes on normal business operations -17 941 -18 378 -9 248 -9 086Income taxes in respect of previous years 15 152 208 15 176 -307Change in the deferred tax liability -1 263 2 115 6 26Total -4 052 -16 055 5 934 -9 367

2.1 NON-CURRENT ASSETS

2.1.1 Intangible assetsIntangible rights 1 763 1 373 634 557Goodwill 41 190 4 688 791 876Other capitalised expenditure 740 683 87 54Advance payments 132 418 27 303Total 43 825 7 163 1 539 1 790

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000


2. BALANCE SHEET

2.1.2 Goodwill on consolidation 29 847 32 515

2.1.3 Tangible assetsLand and Waters 10 378 8 361 7 321 7 305Buildings 27 069 39 370 15 283 16 104Machinery and equipment 58 759 60 858 36 380 27 478Other intangible assets 10 925 9 844 6 461 4 250Advance payments and work in progress 3 152 1 485 1 489 624Total 110 283 119 918 66 935 55 761

2.1.4 InvestmentsHoldings in group undertakings 155 334 158 571Holdings in affiliated undertakings 6 475 2 500 1 274 1 262Other shares and holdings 7 401 7 417 5 582 5 653Total 13 876 9 917 162 190 165 486

2.1.1. Intangible assets

Intangible rightsAcquisition cost 1.1. 3 101 1 856 1 210 1 121Translation difference 3 -1Increases 1 002 1 303 308 91Decreases -567 -57 -24 -2Acquisition cost 31.12. 3 539 3 101 1 494 1 210Accumulated depreciation 31.12. -1 776 -1 728 -861 -653Book value 31.12. 1 763 1 373 634 557

GoodwillAcquisition cost 1.1. 6 837 2 733 3 317 3 894Translation difference -166Increases 39 236 4 705 245 24Decreases -891 -601 -1 862 -601Acquisition cost 31.12. 45 016 6 837 1 700 3 317Accumulated depreciation -3 826 -2 149 -909 -2 441Book value 31.12. 41 190 4 688 791 876

Other capitalised expenditureAcquisition cost 1.1. 802 712 93 93Translation difference 3 1Increases 720 91 92Decreases -420 -3Acquisition cost 31.12. 1 104 801 184 93Accumulated depreciation 31.12. -364 -118 -97 -39Book value 31.12. 740 683 87 54

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000





Advance paymentsAcquisition cost 1.1. 418 121 303 117Translation differenceIncreases 200 323 27 207Decreases -486 -25 -303 -22Acquisition cost 31.12. 132 419 27 303

2.1.2 Goodwill on consolidationAcquisition cost 1.1. 61 719 29 284Translation differenceIncreases 1 517 32 435Decreases -25 990Acquisition cost 31.12. 37 246 61 719Accumulated depreciation 31.12. -7 399 -29 204Book value 31.12. 29 847 32 515

2.1.3 Tangible assets

LandAcquisition cost 1.1. 5 138 4 825 4 082 4 074Increases 2 065 318 40 13Decreases -48 -5 -24 -5Acquisition cost 31.12. 7 155 5 138 4 098 4 082Revaluations 3 223 3 223 3 223 3 223Book value 31.12. 10 378 8 361 7 321 7 305

BuildingsAcquisition cost 1.1. 66 729 61 963 27 662 26 594Translation difference 113Increases 5 922 5 052 275 1 150Decreases -25 176 -285 -82Acquisition cost 31.12. 47 588 66 729 27 938 27 662Accumulated depreciation -23 119 -29 960 -15 255 -14 158Revaluations 2 600 2 600 2 600 2 600Book value 31.12. 27 069 39 370 15 283 16 104

Machinery and equipmentAcquisition cost 1.1. 141 833 120 577 76 059 71 917Translation difference 45 -7Increases 37 904 28 658 31 090 9 466Decreases -33 349 -7 395 -15 152 -5 324Acquisition cost 31.12. 146 434 141 833 91 998 76 059Accumulated depreciation 31.12. -87 675 -80 975 -55 617 -48 581Book value 31.12. 58 759 60 858 36 380 27 478

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000




Other tangible assetsAcquisition cost 1.1. 14 587 11 179 7 392 6 814Translation difference 17 -3Increases 3 596 3 483 3 263 582Decreases -904 -72 -66 -4Acquisition cost 31.12. 17 295 14 587 10 589 7 392Accumulated depreciation 31.12. -6 370 -4 743 -4 128 -3 143Book value 31.12. 10 925 9 844 6 461 4 250

Advance payments and construction in progressAcquisition cost 1.1. 1 485 729 624 790Translation difference 14Increases 3 451 1 479 1 413 618Decreases -1 800 -723 -548 -784Acquisition cost 31.12. 3 152 1 485 1 489 624

2.1.4 Investments

Holdings in group undertakingsAcquisition cost 1.1. 158 571 108 802Increases 12 854 49 769Decreases -16 091Acquisition cost 31.12. 155 334 158 571

Holdings in affiliated undertakingsAcquisition cost 1.1. 2 500 2 497 1 262 1 262Increases 3 975 316 12Decreases -313Acquisition cost 31.12. 6 475 2 500 1 274 1 262

Other sharesAcquisition cost 1.1. 5 816 6 156 4 051 4 505Increases 244 259 11 96Decreases -240 -599 -61 -549Acquisition cost 31.12. 5 821 5 816 4 001 4 052Revaluations 1 581 1 601 1 581 1 601Book value 31.12. 7 401 7 417 5 582 5 653

2.1.5 RevaluationsLandValue 1.1. 3 223 3 223 3 223 3 223Value 31.12. 3 223 3 223 3 223 3 223

BuildingsValue 1.1. 2 600 2 600 2 600 2 600Value 31.12. 2 600 2 600 2 600 2 600

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000



SharesValue 1.1. 1 601 1 691 1 601 1 691Decrease -21 -90 -21 -90Value 31.12. 1 581 1 601 1 581 1 601

2.2 CURRENT ASSETS

2.2.1 InventoriesRaw materials and consumables 13 484 9 164 7 195 6 184Building plots 34 026 45 018Work in progress 32 037 35 667Apartments and premises 42 471 27 028Finished products/goods 23 172 20 331 22 543 18 440Total 145 190 137 208 29 738 24 624

2.2.2 Non-current receivablesLoan receivables 119 236 119 136

2.2.3 Deferred tax assetFrom timing differences 1 234 1 130

2.2.4 Current receivablesAccounts receivable 111 498 114 555 10 060 12 678

Amounts owed by group undertakingsAccounts receivable 4 610 2 646Other receivables 14 154 11 472Prepayments and accrued income 173 173Total 18 936 14 291

Amounts owed by affiliated undertakingsAccounts receivable 8 17 8 17

Loan receivables 15 780 11 538 230 532Other receivables 5 452 2 200 78 74Prepayments and accrued income 30 509 29 645 4 573 3 117Total 51 741 43 383 4 881 3 723

Current receivables, total 163 247 157 955 33 885 30 710

Items included in prepayments and accrued income:Project income 18 126 23 460 1 383Taxes 1 077 568 28Wage- and salary-related expenses 2 156 324 1 041 71Others 9 150 5 293 3 533 1 635Total 30 509 29 645 4 573 3 117

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000



2.2.5 InvestmentsOther securities 12 488 8 743 12 138 3 262

2.3 SHAREHOLDERS' EQUITY

Share capital 1.1. 34 043 28 628 34 043 28 628Bonus issue 5 415 5 415Share capital 34 043 34 043 34 043 34 043

Share premium account 1.1. 5 750 11 165 5 675 11 090Bonus issue -5 415 -5 415Share premium account 31.12. 5 750 5 750 5 675 5 675

Revaluation reserve 1.1. 120 183 120 183Decrease -15 -64 -15 -64Revaluation reserve 31.12. 105 120 105 120

Retained earnings 1.1. 114 619 99 611 84 189 75 420Distribution of dividend -14 314 -14 314 -14 314 -14 314Transfer from revaluation reserve 15 64 15 64Translation difference -291 -32Retained earnings 31.12. 100 029 85 329 69 890 61 169

Profit for the accounting period 55 061 29 291 37 698 23 019

Shareholders' equity, total 194 988 154 532 147 409 124 025

Distributable funds 31.12. 140 378 114 618 107 587 84 188

2.4. APPROPRIATIONS

Depreciation reserve 31.12. 18 499 18 307

2.5 OBLIGATORY PROVISIONS

Guarantee provisions 3 288 3 699Other obligatory provisions 903 67Total 4 190 3 766

2.6 LIABILITIES

2.6.1 Deferred tax liabilityAppropriations 6 741 7 312Revaluations 2 126 2 132 2 126 2 132Timing differences 5 887 4 567Total 14 754 14 011 2 126 2 132

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000




EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000


2.6.2 Non-current liabilitiesLoans from credit institutions 96 186 80 679 44 438 55 319Pension loans 5 651 6 863Other non-current liabilities 1 648 15 258 1 648 15 201Total 103 486 102 800 46 086 70 519

Liabilities due after five years or laterLoans from credit institutions 33 126 21 805 14 801 18 501Pension loans 41 122Total 33 166 21 927 14 801 18 501

2.6.3 Current liabilitiesLoans from credit institutions 34 138 31 339 10 881 15 486Pension loans 1 821 1 753 168Advances received 62 863 59 589 53Accounts payable 34 483 42 206 6 232 7 754Accounts payable to group undertakings 482 306Other liabilities to group undertakings 61 919 27 028Other liabilities 15 386 22 175 1 244 1 711Accruals and deferred income 78 932 59 530 12 678 15 971Total 227 623 216 592 93 604 68 310

Items included in accruals and deferred income:Project expenses 6 625 6 303Value added tax 16 598 6 180 1 180 2 063Income tax 8 502 6 794 1 664Wage- and salary-related expenses 35 862 33 183 9 404 10 939Others 11 345 7 070 2 094 1 305Total 78 932 59 530 12 678 15 971

2.7 EFFECT OF PERCENTAGE-OF-COMPLETION METHOD ON BALANCE SHEET ITEMS

InventoriesWork in progress, total 255 724 248 127Portion recognised as income -223 687 -212 460Work in progress on the balance sheet 32 037 35 667

Current liabilitiesAdvances received, total 304 702 240 185Portion recognised as income -241 839 -180 596Advances received on the balance sheet 62 863 59 589



2.8 CONTINGENT LIABILITIES

Liabilities as well as mortgages and bonds pledged as security for themLoans from financial institutions 41 665 29 105 11 353 17 723

Property mortgages 1 219 1 219Business mortgages 64 502 31 502 23 546 23 546Bonds pledged as security 290 290Total 66 010 33 010 23 546 23 546

Other mortgages and securities for own commitmentsProperty mortgages 5 151 10 735 957Business mortgages 18 280 27 877 1 682 1 682Bonds pledged as security 5 985 4 281Total 29 416 42 893 2 639 1 682

Mortgages for commitments of group undertakingsProperty mortgages 349Business mortgages 33 000Total 33 349

Mortgages and securities, totalProperty mortgages 6 370 11 953 1 306Business mortgages 82 782 59 379 58 228 25 228Bonds pledged as security 6 275 4 570Total 95 426 75 903 59 534 25 228

Guarantees given On behalf of group undertakings 199 843 131 033On behalf of affiliated undertakings 2 086 951 2 086 951On behalf of others 6 347Total 8 433 951 201 929 131 984

Pension liabilities 34

Leasing liabilitiesPayable in the year 2002 7 516 3 319 4 247 2 915Payable in subsequent years 31 465 14 233 18 321 13 614Total 38 980 17 552 22 569 16 529

Factoring liabilities 9 190

Derivative contractsForward foreign exchange contractsNominal value 35 227 1 917 35 227 1 917Current value -154 -154

EUR 1 000 1.1.–31.12.2001 1.1.–31.12.2000 1.1.–31.12.2001 1.1.–31.12.2000


shares and holdings

Company Consolidated Parent company shareholding Shareholding of othershareholding group undertakings

% % Shares Shares Value, EUR 1 000 Value, EUR 1 000Group undertakings 31st December 2001UAB Vakaru Automagistrale, Lithuania 99,3 99,3 1 713 663 1 835Forssan Betonituote Oy, Forssa 100,0 100,0 1 000 3 305UAB Greitkelis, Lithuania 97,5 97,5 1 555 683 1 620Itä-Suomen Valmisbetoni Oy, Lappeenranta 100,0 1 958Kainuun Murske Oy, Kajaani 54,2 54,2 13 149Kvalitetsasfalt i Mellansverige Ab, Sweden 75,0 75,0 7 500 5 066Lemcon Baumanagement GmbH, Germany 100,0 100,0 100 21Lemcon Bauprojekt-Management GmbH, Austria 76,0 10Lemcon Company S.A., Luxembourg 100,0 100,0 1 605 31Lemcon Építöipari Kft, Hungary 76,8 28Lemcon (UK) Ltd, United Kingdom 100,0 100,0 100Lemminkäinen A/S, Denmark 100,0 100,0 45 500 18 972VAe A/S, Denmark 51,0 865Lemminkäinen Norge AS, Norway 100,0 8 892Lemminkäinen Eesti As, Estonia 100,0 100,0 10 3Lemminkäinen Svenska Ab, Sweden 100,0 100,0 10 12Omni-Sica Oy , Helsinki 100,0 100,0 50 9Oy Alfred A. Palmberg Ab, Helsinki 100,0 51,5 2 551 27 960 10 392Oy Finnasfalt Ab, Helsinki 100,0 100,0 200 10Lemminkäinen Construction Ltd, Helsinki 100,0 100,0 100 1 682Sica Oy, Helsinki 100,0 100,0 1 003 55 946TEK Holding Oy, Helsinki 100,0 100,0 900 37 859Tielinja Oy, Helsinki 100,0 100,0 75 309ZAO Lemminkäinen Dor Stroi (Lemdorstroi), Russia 100,0 100,0 49 544As Rajar Tl, Estonia 58,0 5WPL-System Oy, Helsinki 100,0 42Neccos Oy, Helsinki 100,0 52Lemcon Latvija SIA, Latvia 100,0 375Lemcon Vilnius UAB, Lithuania 100,0 979UAB Kelio Linija, Lithuania 98,4 3Lemcon Polska Sp.z o.o, Poland 100,0 387ZAO Lemstroi, Russia 100,0 18ZAO Neccos, Russia 100,0 2ICM International Construction Management, Hungary 70,0 497Lemcon Networks Ltd, Helsinki 76,0 304Lemcon do Brasil Ltda, Brazil 76,0 464Lemcon (Philippines) Inc., Philippines 76,0 222Lemcon Pte Ltd, Singapore 76,0 7Lemcon (Thailand) Ltd, Thailand 33,4 23Oü Sten Killustik, Estonia 100,0 100,0 400 1Tekmanni Oy, Helsinki 82,6 1 464Rakennustoimisto Palmberg Oy, Tampere 90,0 612Oy Konte Ab, Vaasa 90,9 168Rekab Entreprenad Ab, Sweden 80,0 243Palmberg-Rakennus Oy, Oulu 100,0 168Palmberg TKU Oy, Turku 90,0 654Rakennusliike S. Horttanainen Oy, Porvoo 100,0 67Byggnads Ab Forsström Rakennus Oy, Kokkola 75,0 151Savocon Oy, Kuopio 96,4 417Palmberg-Urakoitsijat Oy, Hyvinkää 90,0 45AAP-Insinöörit Oy, Helsinki 100,0 9Rakennus-Otava Oy, Jyväskylä 100,0 605Oka Oy, Kouvola 70,0 2 463Ab Jakobe Oy, Pietarsaari 85,0 1 087Oy Kokkobe Ab, Kokkola 90,3 1 452Total 155 332 35 131Affiliated undertakingsPointti-Talo Oy, Lahti 45,0 45,0 27 293Talter AS, Estonia 49,0 49,0 4 140 981 1 003Laing-Loy Management Ltd, United Kingdom 50,0 33Martin Haraldstad AS, Norway 50,0 812Moelv Grus AS, Norway 50,0 124Nordasfalt AS, Norway 50,0 1 113Lörenskog Asfalt ANS, Norway 50,0 627Oy Tara-Element Ab, Kokkola 48,9 429Other affiliated undertakings 1 059Total 1 274 5 201

Shareholding Nominal value Total% Shares EUR 1 000 EUR 1 000

Other shares and holdingsHelsinki Halli Oy A, Helsinki 12 20 202Oy Nordgolf Ab Y, Åminnefors 1,4 16 67 24Sampo Vakuutus Oy, Turku 0,0 88 460 153Talentum Oyj, Helsinki 0,3 47 344 20 117Vierumäen Kuntokylä Oy, Helsinki 3,4 2 640 44 137Property shares 2 216Housing shares 3 719Other shares and holdings 834Total 7 401



economic trends and financial indicators

2001 2000 1999 1998 1997EUR mill. EUR mill. EUR mill. EUR mill. EUR mill.

Net sales 1 116.5 964.6 826.4 715.6 568.5Exports and operations abroad 202.5 117.6 139.6 159.6 124.3

% net sales 18.1 12.2 16.9 22.3 21.9Operating profit 69.7 50.2 42.8 30.6 21.3

% net sales 6.2 5.2 5.2 4.3 3.8Profit before extraordinary items 61.7 46.4 39.9 27.1 18.3

% net sales 5.5 4.8 4.8 3.8 3.2Profit before taxes 61.7 46.4 39.9 38.9 18.3

% net sales 5.5 4.8 4.8 5.4 3.2Profit for the accounting period 55.1 29.3 26.4 14.2 11.9

% net sales 4.9 3.0 3.2 2.0 2.1

Non-current assets 197.8 169.5 124.5 114.1 111.6Inventories 145.2 137.2 114.6 116.1 200.1Financial assets 212.6 192.5 153.4 114.7 78.2Shareholders' equity 195.0 154.5 139.6 122.0 105.6Minority interests 10.5 7.5 3.3 2.1 1.5Interest-bearing liabilities 138.6 120.6 73.3 63.4 62.6Interest-free liabilities 211.5 216.5 176.3 157.4 220.2Balance sheet total 555.6 499.2 392.5 344.8 389.9

Return on equity. % 1) 31.4 19.9 20.6 5.6 12.1Return on investment. % 23.0 20.7 21.7 18.0 12.8Equity ratio, % 41.7 36.9 43.5 42.6 44.0Gearing, % 44.1 54.0 33.1 30.3 37.4Interest-bearing net liabilities 90.7 87.5 47.3 37.6 40.0Gross investments 94.0 72.4 42.2 18.8 18.4

% net sales 8.4 7.5 5.1 2.6 3.2Order book 31.12. 440.7 451.1 386.6 388.1 294.5Number of employees 6 311 4 487 3 500 3 288 2 966

FORMULAE FOR CALCULATION OF FINANCIAL INDICATORS

1) The EUR 15.2 million tax refund that is recognised as income in the 2001 accounts but had been recordedstill as a liability in the 2000 accounts weakens the comparability of this indicator in particular.

RETURN ON INVESTMENTS, %

Profit before extraordinary items + interest expenses and otherfinancial expenses x 100

Balance sheet total - interest-free liabilities(average for the accounting period)

RETURN ON EQUITY, %

Profit before extraordinary items - income taxes x 100

Shareholders' equity + minority interests(average for the accounting period)

EQUITY RATIO, %

Shareholders' equity + minority interests x 100

Balance sheet total - advances received

GEARING, %

Interest-bearing net liabilities - investments - cash in hand and at banks x 100

Shareholders' equity + minority interests

INTEREST-BEARING NET DEBTInterest-bearing liabilities - investments - cash in hand and at banks

EMPLOYEESSum of monthly employee totals

Number of months in accounting period


0

200

400

600

800

1000

1200

97 98 99 00 01

NET SALES

0

20

30

40

50

60

70

97 98 99 00 01

10

OPERATING PROFIT

0

20

30

40

50

60

70

97 98 99 00 01

10

PROFIT BEFOREEXTRAORDINARY ITEMS

0

5

10

15

20

25

97 98 99 00 01

RETURN ON INVESTMENT

0

20

40

60

80

100

97 98 99 00 01

INVESTMENTS

97 98 99 00 010

10

15

25

40

45

35

30

20

5

EQUITY RATIO

EUR mill.EUR mill.

EUR mill. %

%EUR mill.


shares and shareholders

Lemminkäinen Corporation’s sharesare included in the book entry systemfor securities. The Company’s share islisted on Helsinki Exchanges. TheCompany has a market-making agree-ment with Nordea Securities Oyj.

The Company’s share capital isEUR 34 042 500. The nominal valueof the Company’s share is EUR 2 andthe number of shares 17 021 250. TheCompany has one share series.

SHARE PRICE AND TRADING

The average listed price of Lemmin-käinen Corporation’s share during theaccounting period was EUR 12.86(11.89). The year-end price of theCompany’s share was EUR 13.00(12.00) and the market capitalisationEUR 221.3 million (204.3). At the endof the year the Company had 1 843 (1 720) shareholders. The trading vol-ume was 460 229 shares (1 185 415).

NOTICE AS DEFINED INSECTION 2, ARTICLE 9 OF THE

SECURITIES MARKET ACT

During the accounting period theCompany did not receive any noticesas defined in section 2, article 9 of theSecurities Market Act.

SHAREHOLDER AGREEMENTS

The Company is not aware of anyagreements between shareholders whichmight markedly influence voting be-haviour at meetings of shareholders.

SHARE ISSUE AUTHORISATION

The Board of Directors is not current-ly authorised to make a share issue;neither is it authorised to decide onconvertible promissory notes or bondswith equity warrants.

OWN SHARES

The Board of Directors is not cur-rently authorised to buy back theCompany’s own shares.

MANAGEMENT SHAREOWNERSHIP

As of 31st December 2001, the mem-bers of the Board of Directors and theManaging Director held a total of 7 500 487 shares, representing 44.1 %of the Company’s shares and their con-ferred voting rights.

Number of % of totalshares stock

Heikki Pentti 3 813 956 22.41Erkki J. Pentti 3 673 956 21.58Olavi Pentti 3 673 953 21.58Pohjola Non-Life Insurance Company Limited 1 172 400 6.89Etra Invest Oy 444 400 2.61Varma-Sampo Mutual Pension Insurance Company 441 100 2.59Placeringsfonden Aktia Capital 430 900 2.53Ilmarinen Mutual Pension Insurance Company 304 600 1.79Tukinvest Oy 201 600 1.18Local Government Pensions Institution 194 800 1.14Suomi Mutual Pension Insurance Company 165 000 0.97LEL Employment Pension Fund 156 600 0.92Suomi Insurance Company Limited 125 000 0.73Placeringsfonden Aktia Secura 105 200 0.62Sampo Life Assurance Company Limited 100 000 0.59

Total, 15 largest 15 003 465 88.13

THE COMPANY’S MAJOR SHAREHOLDERS 31ST DECEMBER 2001

OWNER GROUPS 31ST DECEMBER 2001

SHARE OWNERSHIP DISTRIBUTION 31ST DECEMBER 2001

Number of % of Shares % ofshareholders shareholders held total

Households 1 636 88.77 12 359 486 72.61Companies 149 8.08 1 079 406 6.34Financial and insurance institutions 16 0.87 2 080 230 12.22Public corporations 6 0.33 1 162 900 6.83Non-profit organisations 31 1.68 211 948 1.25Foreign owned 5 0.27 2 311 0.01Nominee-registered 112 099 0.66In joint accounts 12 870 0.08

Total 1 843 100.00 17 021 250 100.00

Number of shares Number of % of Shares % of per shareholder shareholders shareholders held total

1 - 100 416 22.57 22 624 0.13101 - 1 000 1 136 61.64 449 331 2.641 001 - 10 000 250 13.56 771 866 4.5310 001 - 100 000 27 1.47 748 995 4.40100 001 - 1 000 000 10 0.54 2 569 200 15.091 000 001 - 4 0.22 12 334 265 72.47Nominee-registered shares 112 099 0.66In joint accounts 12 870 0.08

Total 1 843 100.00 17 021 250 100.00


SHARE-ISSUE-ADJUSTED FINANCIAL INDICATORS

2001 2000 1999 1998 1997EUR EUR EUR EUR EUR

Earnings per share (EPS) 1) 3.23 1.72 1.55 0.34 0.73Equity per share 11.46 9.08 8.20 7.16 6.52Dividend per share 1.102) 0.84 0.84 0.50 0.34Dividend to earnings ratio, % 1) 34.0 48.9 54.3 150.8 45.9Effective dividend yield. % 8.5 7.0 8.6 6.7 4.3Price/earnings ratio (P/E) 1) 4.0 7.0 6.3 22.2 10.5Share price

mean 12.86 11.89 8.78 9.32 8.65lowest 11.00 10.00 7.25 6.22 7.06highest 13.90 14.00 10.10 11.94 9.75at end of accounting period 13.00 12.00 9.80 7.57 7.74

Market capitalisation, mill. 221.3 204.3 166.8 128.8 125.3Shares traded, 1 000 460 1 185 1 658 2 079 4 345

% of total 2.7 7.0 9.7 12.4 26.8Issue-adjusted number of shares

average for the period, 1 000 17 021 17 021 17 021 16 700 16 200at end of period, 1 000 17 021 17 021 17 021 17 021 16 200

EARNINGS PER SHARE

Profit before extraordinary items and taxes -income taxes - minority interests

Share-issue-adjusted average number of shares

SHAREHOLDERS' EQUITY PER SHARE

Shareholders' equity

Share-issue-adjusted number of shares at the end of period

DIVIDEND PER SHARE

Dividend for the accounting period

Share-issue-adjusted number of shares at the end of period

DIVIDEND TO EARNINGS RATIO, %

Dividend for the accounting period x 100

profit before extraordinary items - taxes - minority interests

EFFECTIVE DIVIDEND YIELD, %

Dividend per share x 100

Final share quotation

P/E RATIO

Final share quotation

Earnings per share

MEAN SHARE PRICE

(share-issued-adjusted)Trading value of total share turnover

Share-issue-adjusted number of shares traded during the period

MARKET CAPITALISATIONNumber of shares x final share quotation

FORMULAE FOR CALCULATION OF FINANCIAL INDICATORS

1) The EUR 15.2 million tax refund that is recognised as income in the 2001 accounts but had been recordedstill as a liability in the 2000 accounts weakens the comparability of these indicators in particular.

2) Board of Directors’ proposal to the AGM

3,5

3,0

2,5

2

1,5

1

0,5

097 98 99 00 01

EARNINGS PER SHARE

12

10

8

6

4

2

097 98 99 00 01

SHAREHORDERS’ EQUITY PER SHARE

1,2

1

0,8

0,6

0,4

0,2

097 98 99 00 01*

DIVIDEND PER SHARE


shares and shareholders

50

45

40

35

30

25

20

15

10

5

0

97 98 99 00 01

1200

1000

800

600

400

200

0

97 98 99 00 01

SHARE-ISSUE-ADJUSTED PRICE TREND

SHARE TRADING (NON-SHARE-ISSUE-ADJUSTED)

EUR EUR

Share price Hex-index Hex-portfolioindex

Shares x 1000

EUR

EUR

* Board of Directors´ proposal to the AGM


board of directors' proposal for appropriation of retained earnings

Helsinki, 13th February 2002

Heikki Pentti Teppo Taberman Paul Blomqvist

Erkki J. Pentti Juhani Sormaala

We have audited the accounting, the financial statementsand the corporate governance of Lemminkäinen Corpo-ration for the financial year ended December 31, 2001.The financial statements, which include the report ofBoard of Directors, consolidated and parent companyincome statements, balance sheets and notes to financialstatements, have been prepared by the Board of Directorsand the Managing Director. Based on our audit we expressan opinion on these financial statements and on corporategovernance.

We have conducted the audit in accordance withFinnish Standards on Auditing. Those standards requirethat we perform the audit to obtain reasonable assuranceabout whether the financial statements are free of materi-al misstatement. An audit includes examining on a testbasis evidence supporting the amounts and disclosures inthe financial statements, assessing the accounting princi-ples used and significant estimates made by the manage-

ment as well as evaluating the overall financial statementpresentation. The purpose of our audit of corporate gov-ernance is to examine that the members of the Board ofDirectors and the Managing Director have legally com-plied with the rules of the Companies Act.

In our opinion the financial statements have been pre-pared in accordance with the Accounting Act and otherrules and regulations governing the preparation of finan-cial statements. The financial statements give a true andfair view, as defined in the Accounting Act, of both theconsolidated and parent company's result of operations aswell as of the financial position. The financial statementswith the consolidated financial statements can be adoptedand the members of the Board of Directors and theManaging Director of the parent company can be dis-charged from liability for the financial year audited by us.The proposal by the Board of Directors regarding distrib-utable funds is in compliance with the Companies Act.

auditor's report

Helsinki, 5th March 2002

Jan Holmberg Jarmo AlénAuthorised Public Accountant Authorised Public Accountant

Distributable shareholders’ equity shown on the consoli-dated balance sheet at 31st December 2001 amounts toEUR 140 377 585.48. Distributable shareholders’ equityshown on the parent company balance sheet at 31st

December 2001 amounts to EUR 107 587 367.44, con-sisting of EUR 69 889 513.28 in retained earnings from

previous years and EUR 37 697 854.16 in profit for theaccounting period. The Board of Directors will propose tothe Annual General Meeting that a total dividend of EUR18 723 375.00 be paid to shareholders, after whichretained earnings would stand at EUR 88 863 992.44.

To the shareholders of Lemminkäinen Corporation


parent company board of directors

HEIKKI PENTTI (55)

- B.Sc. (Econ.)- Chairman of the Board since 1994- Board member since 1969- Company employee since 1973- Member of the Board of Directors

of Fortum Oyj, Myllykoski Oyjand Pohjola Group plc

- Chairman of the Board of theConfederation of FinnishConstruction Industries and Vice-chairman of the Confederation ofFinnish Industry and Employers

- Owns 3 813 956 LemminkäinenCorporation shares

TEPPO TABERMAN (57)

- M. Sc. (Econ.)- Vice-chairman since 1998- Board member since 1997- Member of the Board of Directors

of Oy Rettig Ab, Oy G.W. Sohlberg Ab, Ingman Group Oy Ab, Larox Oyj, Paloheimo Oy and SKS-Tekniikka Oy

- Does not own any LemminkäinenCorporation shares

PAUL BLOMQVIST (70)

- B.Sc. (Econ.)- Board member since 1968- Company employee 1960–1990- Owns 7 175 Lemminkäinen

Corporation shares

ERKKI J. PENTTI (53)

- Graduate in business studies- Board member since 1975- Company employee since 1973- Owns 3 673 956 Lemminkäinen

Corporation shares

JUHANI SORMAALA (52)

- M.Sc. (Eng.), B.Sc. (Econ.)- Managing Director since 1994- Board member since 1989- Company employee since 1981- Owns 5 400 Lemminkäinen

Corporation shares

Erkki J. Pentti Teppo Taberman Juhani Sormaala Paul Blomqvist Heikki Pentti

corporate governance


GROUP STRUCTURE

There are five business sectors in theLemminkäinen Group. The businessoperations of the parent company aredivided into the Paving and MineralAggregates Division and the BuildingMaterials Division. The subsidiariesLemminkäinen Construction Ltd,Oy Alfred A. Palmberg Ab andTekmanni Oy each operate in theirown business sectors.

BOARD OF DIRECTORS OFTHE PARENT COMPANY

Lemminkäinen Corporation’sAnnual General Meeting elects eachyear at least four and at most eightmembers to serve on the Company’sBoard of Directors. The term ofoffice of the board members ends atthe conclusion of the first AnnualGeneral Meeting held after their elec-tion. The Board of Directors elects itsChairman and Vice-chairmen fromamong the members. There were fivemembers serving on the Board ofDirectors in 2001. The fees payableto board members are decided at ageneral meeting of shareholders.

Lemminkäinen Corporation’sBoard of Directors decides on impor-tant matters of principle and issueswith far-reaching consequences forthe Group. The Board of Directorsmakes decisions in accordance withits mandate in the Articles ofAssociation on matters such asexpansion into new business areasand the discontinuation of old busi-nesses. The Board of Directorsapproves the budgets of group com-panies as constituent parts of theGroup’s budget, and makes invest-ment and financing decisions that areimportant for the Group. In addi-tion, the Board of Directors decideson the content of the Group’s envi-ronmental, insurance and other keypolicies.

The Board of Directors appointsand dismisses the Managing Directoras well as his/her immediate subordi-

nates. It decides on the salary, feesand other benefits received by theManaging Director and his/herimmediate subordinates. The Boardof Directors also decides on the prin-ciples of the Group’s incentive payscheme.

At board meetings to be held onaverage once a month the ManagingDirector presents his review of theGroup’s different business sectors aswell as financial reports on theGroup. The Board of Directors meton eleven occasions in 2001.

MANAGING DIRECTOR

The Managing Director ofLemminkäinen Corporation isresponsible for the day-to-day man-agement and practical planning ofthe Company’s businesses. TheManaging Director also takes care ofactions that are strategically impor-tant at Group level, such as prepara-tions for acquisitions and the execu-tion of measures decided by theBoard of Directors. In addition, theManaging Director ensures that theCompany’s management resourcesare sufficient and that the Company’sgovernance is both appropriate andin accordance with the law.

GOVERNANCE OF SUBSIDIARYGROUPS

The members of the boards of direc-tors of subsidiaries are generallymanagement personnel employedby the Lemminkäinen Group. TheManaging Director of Lemmin-käinen Corporation serves as thechairman of each of these board ofdirectors. No separate remunerationis paid to employees of the Group inrespect of subsidiary board mem-bership.

SUPERVISION

Unit-specific reporting systems areused within the Group to controlbusiness performance and supervisetreasury management.

Auditing within the Group is car-ried out by auditors elected at a gen-eral meeting of shareholders and bythe Group’s internal audit function.

INSIDER RULES

Lemminkäinen Corporation’s newGuidelines for Insiders came intoforce on 1st March 2000. Theyembrace the insider rules drawn upby Helsinki Exchanges, the CentralChamber of Commerce of Finlandand the Confederation of FinnishIndustry and Employers.

Statutory insiders as well as per-sons who in the course of their dutiesregularly receive information essen-tially influencing the value of a secu-rity of the Company are defined aspermanent insiders on the basis ofthe Guidelines. The duration of theperiod preceding the publication ofinterim financial reviews and full-year financial statements duringwhich the Company’s permanentinsiders may not trade in securitiesissued by the Company, i.e. the so-called closed window, is 21 days.


information for shareholders

ANNUAL GENERAL MEETING

The Annual General Meeting ofLemminkäinen Corporation will beheld at 3.00 p.m. on Friday, 22nd

March 2002 at the Marina CongressCentre, Katajanokanlaituri 6, 00160Helsinki. The items on the agenda ofthe Annual General Meeting will beas specified in §11 of the Articles ofAssociation.

Mr. Paul Blomqvist has notifiedthe Board of Directors that he willnot be standing for re-election to theboard at the forthcoming AGM.Shareholders representing 65 % ofthe voting rights in the Companyhave announced that they will pro-pose to the AGM that the number ofboard members be confirmed at five.In addition they recommend thatMessrs. Erkki J. Pentti, HeikkiPentti, Juhani Sormaala and TeppoTaberman be re-elected to the boardand that Mr. Berndt Brunow, themanaging director of Sanitec Oyj, beelected to serve as a new member.

Shareholders registered on theCompany’s list of shareholders keptby the Finnish Central SecuritiesDepository Ltd on 12th March 2002shall be entitled to attend the AnnualGeneral Meeting. Any shareholderwhose shares have not been trans-ferred to the book entry system forsecurities shall also be entitled toattend the Annual General Meeting,provided that the shareholder wasrecorded on the Company's shareregister before 28th October 1994. Inthis case the shareholder shall presentat the Annual General Meetinghis/her share certificate or some oth-er evidence that the ownership righthas not been assigned to a book entryaccount.

Shareholders wishing to attendthe Annual General Meeting mustinform the Company by 2 p.m. on Tuesday, 19th March 2002 at the latest. Notice of intention toattend the meeting may be given by telephoning Mrs. Maritta Laitinen

(+358 9 1599 303). Written noticesmay be mailed to LemminkäinenCorporation, Maritta Laitinen, P.O.Box 23, 00241 Helsinki, or sent byfax (+358 9 1599 510), or e-mailed to [email protected]

Written notices of intention toattend the meeting must arrive beforethe deadline stated above. Any lettersof authorisation must also be sub-mitted to the Company by the samedeadline.

Copies of the financial state-ments will be available for inspectionat the Company's head office atEsterinportti 2, 00240 Helsinki from 6th March 2002. Copies of thefinancial statements will be sent toshareholders upon request.

PROPOSAL FOR THEAPPROPRIATION OF RETAINED

EARNINGS

The Board of Directors of Lemmin-käinen Corporation will propose tothe Annual General Meeting that adividend of EUR 1.10 per share, i.e. a total of EUR 18 723 375.00, be paid for the accounting period 1st January – 31st December 2001.The dividend will be paid to share-holders recorded on the Company'slist of shareholders kept by the Finnish Central SecuritiesDepository Ltd on the record date,i.e. 27th March 2002. The dividendpayment date will be 5th April 2002.

FINANCIAL REPORTING

In addition to its annual report,Lemminkäinen Corporation willpublish the following financialreports in 2002:

13th February 2002Bulletin on financial statementsfor the 2001 accounting period

15th May 2002 Interim financial review, 1st January – 31st March 2002

14th August 2002 Interim financial review, 1st January – 30th June 2002

13th November 2002 Interim financial review, 1st January – 30th September 2002

The annual report will be publishedin Finnish, Swedish and English. Theannual report will be mailed to theCompany’s registered shareholders.The interim financial reviews will bepublished electronically in Finnishand English on the company’s web-site: www.lemminkainen.fi

In keeping with the widespreadpractice of publishing financial statements on the Internet, theCompany will no longer auto-matically mail printed interim finan-cial reviews to shareholders or otherstakeholder groups. Financial reportscan be ordered from the Company’sinformation services by phone: +358 9 1599 511 or by e-mail: library@ lemminkainen.fi


contact information

HEAD OFFICE

LEMMINKÄINEN CORPORATION

Esterinportti 2, 00240 HelsinkiTelephone +358 9 15 991Fax +358 9 140 672E-mail:[email protected]: www.lemminkainen.fi

REGIONAL OFFICES

FORSSAKaikulantie 57, 30100 Forssa+358 3 424 0300

HUITTINENRisto Rytin katu 22, 32700 Huittinen+358 2 569 236

HÄMEENLINNATölkkimäentie 4, 13130 Hämeenlinna+358 3 628 0010, 628 0020

IISALMILouhenkatu 7, 74100 Iisalmi+358 17 816 861

IMATRAKarjalantie 857, 55800 Imatra+358 5 473 8666

JOENSUUParrutie 1, 80100 Joensuu+358 13 264 210

JYVÄSKYLÄVasarakatu 1, 40320 Jyväskylä+358 14 334 400

KAJAANIBrahenkatu 16 as. 9, 87100 Kajaani+358 8 613 1303

KEMIValtakatu 30, 94100 Kemi+358 16 221 647

KOKKOLAOutokummuntie, 67100 Kokkola+358 6 831 1089

KOTKAValajantie 7, 48230 Kotka+358 5 210 4300, 210 4340

KOUVOLAAlakyläntie 23, 45100 Kouvola+358 5 375 6910

KUOPIOYrittäjäntie 17, 70150 Kuopio+358 17 264 4000

KUUSAMOKalliovaara , 93600 Kuusamo+358 8 851 4468

LAHTIKerintie 20, 15500 Lahti+358 3 874 200

LAPPEENRANTARuukintie 9, 53500 Lappeenranta+358 5 416 2025, 416 2940

LOHJAPuistokatu 25, 08150 Lohja+358 19 362 0231

MIKKELIKaarikuja 1 C 20, 50170 Mikkeli+358 15 366 034

MUIJALAPysäkkitie 14, 08680 Muijala+358 19 335 245

OULUSälpätie 5, 90630 Oulu+358 8 556 0111, 556 0255

PORITuomolantie 2, 28360 Pori+358 2 646 2505, 646 0961

RAAHEKirkkokkatu 28 B, 92100 Raahe+358 8 223 7019

SALOPerämiehenkatu 9, 24100 Salo+358 2 777 828

SAVONLINNAAhertajantie 11, 57230 Savonlinna+358 15 515 750

SEINÄJOKITeollisuustie 11, 60100 Seinäjoki+358 6 420 3500

TAMPEREPossijärvenkatu 3, 33400 Tampere+358 3 237 6600

TURKUVoimakatu 13, 20520 Turku+358 2 274 6611

TUUSULASammonmäki, P.O.Box 1004361 Tuusula+358 9 870 441

VAASATeollisuustie 11, 65610 Mustasaari+358 6 322 3557, 322 1656

VALKEAKOSKIVainionkatu 2, 37600 Valkeakoski+358 3 584 4344

VANTAAElannontie 5, 01510 Vantaa+358 9 478 4410


contact information

FACTORIES

CONCRETE PRODUCTSFACTORIES

Sammonmäki, P.O.Box 1004361 Tuusula+358 9 870 441

16300 Orimattila+358 3 887 450

NATURAL STONE WORKS

07600 Myrskylä+358 19 677 0650

Kölkynvuorentie 644500 Viitasaari+358 14 570 010

BITUMINOUS PRODUCTSFACTORY

(ROOFING)Puistokatu 25-27, 08150 Lohja+358 19 362 0201

LEMMINKÄINENCONSTRUCTION LTD

Esterinportti 2, 00240 Helsinki+358 9 15 991Managing Director Matti A. Mantere

Lemcon Networks LtdEsterinportti 2, 00240 Helsinki+358 9 15 991Managing Director Juha Nurmi

OY ALFRED A. PALMBERG AB

Esterinportti 2, 00240 Helsinki+358 9 15 991Managing Director Risto Bono

Palmberg TKU OyKäsityöläiskatu 9, 20100 Turku+358 2 2751 800Managing Director Mikko Pirhonen

Palmberg-Urakoitsijat OyUudenmaankatu 32-3405800 Hyvinkää+358 19 475 9100Managing Director Ahti Kara

Oka OyIlmarinkuja 3, 45100 Kouvola+358 201 741 200Managing Director Jorma Tamminen

Rakennustoimisto Palmberg OySatakunnankatu 22 E33210 Tampere+358 3 3397 1100Managing Director Jukka Terhonen

Rakennus-Otava OyPajatie 8, 40630 Jyväskylä+358 14 339 3800Managing Director Jussi Kari

Oy Konte AbOlympiakatu 16, 65100 Vaasa+358 6 323 0311Managing Director Göran Pellfolk

Byggnads Ab Forsström Rakennus OyÅströminkuja, 67100 Kokkola+358 6 823 2200Managing Director Peter Forsström

Palmberg-Rakennus OyValtatie 21, 90500 Oulu+358 8 514 4600Managing Director Ahti Heikka

Savocon OyPuijonkatu 29 A, 70100 Kuopio+358 17 266 3400Managing Director Martti Kankkunen

TEKMANNI OY

Mikkolantie 1 B, 00640 Helsinki +358 9 35 031Managing Director Antero Huhta

ESPOOSinikalliontie 12, 02630 Espoo +358 9 512 3930

FORSSAMurrontie 3, 30420 Forssa+358 3 412 7555

HÄMEENLINNAHelsingintie 7013430 Hämeenlinna +358 3 644 141

JOENSUUUkkolantie 21, 80130 Joensuu +358 13 126 811

JYVÄSKYLÄVasarakatu 9, 40320 Jyväskylä +358 14 334 9211

JÄMSÄKoskentie 1, 42100 Jämsä +358 14 749 8800

KARKKILABremerintie, 03600 Karkkila+358 9 225 5206

SUBSIDIARIES IN FINLAND


KEMIAsentajankatu 6, 94600 Kemi +358 16 271 329

KOKKOLAVasarakuja 9, 67100 Kokkola +358 6 832 6200

KUOPIOKartanonkatu 2, 70700 Kuopio +358 17 264 6600

LAHTISopenkorvenkatu 15, 15800 Lahti +358 3 544 7800

LAPPEENRANTASkinnarilankatu 28 A 1353850 Lappeenranta+358 5 610 0611

OULULumijoentie 8, 90400 Oulu+358 8 534 4700

PORIItsenäisyydenkatu 42, 28130 Pori +358 2 630 7400

PORVOOYrittäjänkatu 2, 06150 Porvoo +358 19 5298 700

RAAHEPajuniityntie 21, 92120 Raahe +358 8 263 758

RAUMAPaananvahe 6, 26100 Rauma +358 2 549 8680

RIIHIMÄKISaranpää 2, 11130 Riihimäki +358 19 716 050

SEINÄJOKIPäivölänkatu 40, 60120 Seinäjoki +358 6 223 2500

SÄKYLÄYrittäjäntie 1, 27800 Säkylä +358 2 867 1435

TAMPEREPaasikiventie 16 C, 33230 Tampere +358 3 236 7700

TURKULukkosepänkatu 7, 20320 Turku +358 2 515 1600

VAASAOlympiakatu 16 B 37, 65100 Vaasa+358 6 312 4700

VALKEAKOSKI.Asemantie 8, 37630 Valkeakoski +358 3 585 0510

VIHTI Asemantie 10, 03100 Nummela +358 9 3503 3131

ÄÄNEKOSKIYrittäjänkatu 2, 44150 Äänekoski +358 14 529 5200

TIELINJA OY

Päiviöntie 3, 12400 Tervakoski+358 19 760 460Managing Director Harri Linnakoski

FORSSAN BETONITUOTE OY

Kaikulantie 57, 30100 FORSSA+358 3 4240 3300Managing Director Antti Hujanen

ITÄ-SUOMENVALMISBETONI OY

Kaakkoiskaari 1453500 Lappeenranta+358 5 416 1215Managing Director Hannu Härkönen

OMNI-SICA OY

Esterinportti 2, 00240 Helsinki+358 9 148 1144Managing Director Pekka Peho

LEMMINKÄINEN GROUP WEBSITES

Lemminkäinen Group www.lemminkainen.fiPaving Unit www.lemminkainen.fi/paallystysMineral Aggregates Unit www.lemminkainen.fi/kiviainesCentral Laboratory www.lemminkainen.fi/laboratorioBuilding Materials Division www.insinoori.net Forssan Betonituote Oy www.forssanbetoni.fiKvalitetsasfalt i Mellansverige Ab www.kvalasfalt.seTielinja Oy www.tielinja.fiLemminkäinen Construction Ltd www.lemminkainen.ru Lemcon Networks Ltd www.lemcon.com ICM InternationalConstruction Management Rt. www.icm.huOy Alfred A. Palmberg Ab www.palmberg.comByggnads Ab Forsström Rakennus Oy www.forsstromrakennus.fiOy Konte Ab www.konte.fi Oka Oy www.oka.fi Palmberg-Rakennus Oy www.palmberg-rakennus.fiPalmberg TKU Oy www.palmberg-tku.fi Rakennus-Otava Oy www.rakennusotava.fiRakennustoimisto Palmberg Oy www.palmberg-tampere.comTekmanni Oy www.tekmanni.fi


contact information

LATVIA

LEMCON LATVIJA SIA.E. Birznieka Upisa 10-2 LV-1050 Riga+371 72 87 010

LITHUANIA

UAB LEMCON VILNIUSUAB GREITKELISGranito g. 4, 2028 Vilnius+370 2 641 426, +370 2 641 648

UAB VAKARUAUTOMAGISTRALE Tilze.s g. 53, 5799 Klaipeda+370 6 314 354

UAB Tecmen Vilniusc/o Mikkolantie 1 B 00640 Helsinki+358 9 35 031

NORWAY

LEMMINKÄINEN NORGE ASFjellhamarveien 44 b1472 Fjellhamar+47 67 91 48 00

PasadalenBox 42, 3904 Porsgrunn+47 35 93 34 50

Hovemovegen 802624 Lillehammer+47 61 05 43 00

Box 244, 9315 SØrreisa+47 77 86 18 06

POLAND

LEMCON POLSKA Sp. z o.o.ul. Marconich 9 m 402-954 Warsaw+48 22 8589 837

SWEDEN

LEMMINKÄINENCONSTRUCTION LTDTorsgatan 12, 11123 Stockholm+46 8 5452 5380

KVALITETSASFALT IMELLANSVERIGE ABBrunnsgatan 38, 73331 Sala+46 22 437 550

Vargmötesvägen 2 C 18630 Vallentuna+46 8 514 308 50

DENMARK

LEMMINKÄINEN A/SNØrreskov Bakke 1, 8600 Silkeborg+45 8722 1500

Region NordEgelundvej 3, 8800 Viborg+45 8727 5030

Region MidtDorotheasvej 11-13, 7171 Uldum+45 7567 8355

Region SydJernbanegade 3A, 6230 RØdekro+45 7466 2444

Region ØstNordhavnsvej 2, 4600 KØge+45 5664 6800

HUNGARY

ICM INTERNATIONALCONSTRUCTIONMANAGEMENT Rt.H-1063 Budapest, Bajnok u. 13+36 1 3120 484

RUSSIA

ZAO LEMMINKÄINENDORSTROIZAO LEMSTROIZAO RAKENNUSLEMMINKÄINENUl. Narodnaja 12, 109172 Moscow+7 095 2340 647, +7 095 956 04 71/72

ZAO LEMMINKÄINENZAO LEMMINKÄINENDORSTROIPr. Kosmonavtov 1 196211 St. Petersburg+7 812 388 8700

ZAO Tekmen SS, Moscowc/o Mikkolantie 1 B00640 Helsinki+358 9 35 031

OOO Tekmen SPb, St. Petersburgc/o Mikkolantie 1 B 00640 Helsinki+358 9 35 031

ESTONIA

LEMMINKÄINEN EESTI ASLiivalaia 14, 10118 Tallinn+372 6 461 125

AS RAJAR TLLagedi. Rae vald 75303 Harju Maakond+372 6 766 141

AS TALTERBetooni 28, 11415 Tallinn+372 6057 550

Tekmanni Eesti OÜc/o Mikkolantie 1 B 00640 Helsinki+358 9 35 031

FOREIGN SUBSIDIARIES

LEMMINKÄINEN CORPORATIONesterinportti 2, 0024000240 helsinkiP.O.BOX 2323, 0024100241 helsinkitelephone +358358 9 15 9919 15 991fax +358358 9 140 69 140 672www.lemminkainen.fi

lemm

inkäinen corporation annual report 2001

annual report 2001

Documents

Lemminkäinen Annual Report 2001 · LEMMINKÄINEN CORPORATION esterinportti 2, 0024000240 helsinki P.O.BOX 2323, 0024100241 helsinki telephone +358358 9 15 9919 15 991 fax +358358