Strategy for 2010–2013
The main targets of Lemminkäinen’s strategy for 2010–2013 were profitable growth and improved solvency. Halfway through the strategy period, the strategic focus of the Finnish operations was specified to increasing the share of residential development and construction to over 50% of the Building construction segment’s net sales, and increasing the share of service business to 50% of the Technical building services segment’s net sales. In infrastructure construction in Scandinavia, the goal was to increase net sales by a total of approximately EUR 100 million in 2012–2013. In Russia, Lemminkäinen’s goal was to launch the construction of about 1,000 new housing units every year.
In 2013, the share of net sales of residential development and construction in the Building construction segment was approximately 40%, and the share of service business of the Technical building services segment’s net sales was approximately 30%. Net sales from infrastructure business in Sweden, Norway and Denmark grew by EUR 43 million in 2012–2013. In Russia, Lemminkäinen launched the construction of approximately 800 new housing units in 2013.
Strategy for 2014–2018
Lemminkäinen’s 2014–2018 strategy focuses on insightful infrastructure solutions as well as residential construction in urban growth centres, especially in Russia. Lemminkäinen aims to grow into one of the leading providers of demanding infrastructure solutions in Northern Europe. In Russia, the residential development and construction business will be extended from St Petersburg to other selected urban growth centres. In paving and mineral aggregates, Finnish building construction, and technical building services, Lemminkäinen will continue to focus on improving operational and capital efficiency. Strategic options for technical building services will be examined. The financial targets for the strategy period are a return on investment of 18% over the cycle and an equity ratio of at least 35%.