Group strategy

In July 2014, Lemminkäinen reviewed its strategy and sharpened its focus after the divestment of technical building services. In the short term, Lemminkäinen concentrates on improving its competitiveness, profitability and financial position. In the long term, the company seeks profitable growth by utilising its strong market position in infrastructure construction in Northern Europe. In paving, where Lemminkäinen already has a leading position, the company will continue measures to improve its competitiveness through enhanced operational and capital efficiency. In building construction in Finland and Russia, where the market outlook continues to be uncertain, Lemminkäinen is focusing on selected customer segments and areas.

Financial targets and actual performance

Financial target Target level Actual 2014 Actual 2013 Actual 2012
Return on investment over the cycle 18% (15% by the end of 2016) 14% -9% 11%
Equity ratio* at least 35% 37% 27% 37%
Payment of dividend at least 40% of the profit for the financial year 0 0 27%

* If hybrid bonds were recognised as debt, equity ratios would be: 2014: 25%, 2013: 22% and 2012: 31%.