Financial responsibility

We provide our customers with solutions for demanding infrastructure construction, paving and building construction. We want to be one of the leading experts in the industry and we aim at exceeding our customers’ expectations. This enables us to contribute to the success of our customers’ operations.

We want to create added value for our stakeholders in a manner that benefits all parties. In line with our strategy, our target is to bear our financial responsibility by improving our competitiveness in all business segments and by building a solid foundation to enable profitable growth. By doing this, we can ensure that we are a good investment, an attractive employer, a reliable partner and a responsible corporate citizen.

We develop our operations and expertise continuously to ensure the quality and competitiveness of our solutions and services. In 2015, we received EUR 70,015 grants for development projects from the Finnish government.

Economic value added generated

Suppliers and partners
EUR 1,437.1 million (EUR 1,699.1 million)

Direct impact

  2015 2014
Materials and services  1,299.6  1,506.5
Other operating expenses  137.5  192.8

Indirect impact

We are a significant buyer of raw materials, products and services in our operating countries. Our purchases create local jobs and generate new business opportunities for our partners.

The procurement agreement terms and conditions comply with our Code of Conduct that also highlight ethical values and environmental issues. We work in close cooperation with both authorities and suppliers to enhance transparency in the construction industry and to promote general operating principles to prevent the grey economy, for example.

 

Personnel
EUR 294.9 million (EUR 376.1 million)

Direct impact

  2015 2014
Salaries and remuneration  245.7  313.4
Other personnel expenses  49.2  62.7

Indirect impact

We are a significant local employer. The salaries and remuneration we pay to our personnel support private consumption and commercial activity in local communities. We develop our personnel’s competence. We invest in our personnel’s occupational safety and well-being and employee satisfaction in order to lengthen careers.

 

Shareholders and financiers
EUR 28.9 million (EUR 35.3 million)

Direct impact

  2015 2014
Interest and finance costs 28.9 35.3
Dividends, Lemminkäinen Corporation 0.0 0.0

Indirect impact

We continuously strive to improve our result and to increase the value we create for our shareholders. Our shareholders benefit from potential rises in the share price and from dividends paid to them. When it comes to financing, we meet our payment obligations as agreed, which reduces the creditors’ risk.

Lemminkäinen’s Board of Directors proposes to the General Meeting that a EUR 0.12 dividend per share, i.e. EUR 2,786,388 in total, be paid for the financial year ended on 31 December 2015.

 

Society
EUR 13.3 million (EUR 32.1 million)

Direct impact

  2015 2014
Gross investments  10.3  30.0
Income taxes on normal business operations  2.7  2.9
Taxes of earlier financial years  0.3  -0.8

Indirect impact

We are a visible operator in society; our solutions in traffic infrastructure and housing, for example, are used by the population over the long term and contribute to the safety, convenience and comfort of the end users. For the public sector, we offer solutions that enable the use of different financing and cooperation models and make large-scale public investments easier to execute.

We support social well-being and development by paying taxes and making other mandatory payments. In addition, our personnel pay taxes from their salaries and remuneration. We comply with the local tax legislation in all of our operating countries and we do not operate in tax havens. In our operating countries, we apply the principles of the OECD’s transfer pricing guidelines.

We invest in environmentally friendly production methods, which helps to reduce our environmental footprint and that of our customers as well as to promote sustainability in society. With optimally targeted investments, we can achieve production cost savings and develop our business operations in those areas where we perceive growth opportunities. At the same time, we safeguard jobs.

For example:

  • By investing in a mobile fleet, we can improve the efficiency of fleet utilisation and save in transportation
  • By ensuring that our mineral aggregate quarrying sites are in reasonable locations enabling long-term use, we can better take into account the requirements of the surroundings and shorten transportation distances
  • By investing in the recycling of materials, we save the environment and material costs.