Annual Report 2016

With a stronger balance sheet and financial position, we will now focus on improving our competitiveness.


We are excavating space in Blominmäki in Espoo, Finland for an ultramodern wastewater treatment plant. The surface area of the new plant will be 10 hectares. The halls reach the height of 20 metres and more and there would be room for an 8-storey building. Watch the video and dive underground.

Lemminkäinen in brief

We are an expert in complex infrastructure construction and building construction in Northern Europe and one of the largest paving companies in our market area. Together with our customers and the professionals we employ, we build a sustainable society. We want to be a best-in-class construction company. For us, this means, first and foremost, satisfied customers and employees. Lemminkäinen Corporation’s share is quoted on Nasdaq Helsinki Ltd.

Key figures 2016

Net sales


EUR million

Operating profit


EUR million

Order book, 31 DEC 2016


EUR million

Personnel, 31 DEC 2016



Distribution of net sales by business

Column 1
Paving 46%46
Building construction 35%35
Infra projects 19%19

Distribution of net sales by country

Column 1
Finland 67%67
Sweden 6%6
Norway 12%12
Denmark 5%5
Russia 3%3
The Baltic countries 7%7

Personnel by country

Column 1
Finland 55%55
Sweden 4%4
Norway 11%11
Denmark 5%5
Russia 10%10
The Baltic countries 15%15

CEO's review

Dear shareholders,

We have completed the first phase of the strategy period launched in 2014. We now have a substantially stronger balance sheet structure and financial position. From March 2014, our operating capital has decreased from EUR 691 million to EUR 388 million and our interest-bearing net debt from EUR 364 million to EUR 81 million. In addition, we have reduced the nominal amount of outstanding hybrid bonds from EUR 140 million to EUR 35 million. During the past two years, we have also divested non-core businesses and shifted our focus in Russia from residential development to negotiated contracting in building construction.

 In 2016, our operating profit improved year-on-year. The business segments that improved their result from the comparison year were Paving and Building construction, Finland. The majority of our profit improvement, EUR 27 million, resulted from reimbursements and lowered provisions related to the asphalt cartel decisions made by the Helsinki Court of Appeal in October 2016. We are satisfied that since the decisions were made we have reached settlement agreements with 17 municipalities and the State of Finland. The case may still continue in the Supreme Court with those 19 municipalities with whom we have not settled.

Going forward, we will focus on improving our result by developing the operational efficiency of our business operations.

The construction industry is known for each work phase involving some period of waiting. We are actively seeking the means to eliminate this unnecessary waste and consequently achieve more efficient project completion. Paving and mineral aggregates production processes also consume a lot of energy. By adapting new, more energy-efficient processes, we can save both costs and natural resources.

For 2017, the outlook for our operating environment is stable. We continue to seek growth in infra projects, especially in Sweden and Norway where there are many planned or ongoing projects that are suitable for us. We have renewed our organisation and ways of working so that they support our growth targets better.

Unfortunately, our lost time accident rate rose in 2016. With this development we cannot be satisfied. We are working systematically to stop this negative trend and to see a fall in the lost time accident rate again.

Our result is made possible by satisfied customers and competent and motivated personnel. We need to look after the well-being of our personnel every day. Furthermore, we must see to it that the quality of our services and customer satisfaction remain high when we develop our operations. I would like to thank our employees, customers and other stakeholders for the good and constructive co-operation last year.

Casimir Lindholm, President and CEO


Our services


We make transports and travel safer by repairing the road network in all our operating countries. We are one of the largest paving operators in our market area and provide our customers with a comprehensive range of paving services, from basic road maintenance to specialised contracting.

Infra projects

We have profound experience in complex infrastructure construction in Northern Europe. Our areas of special expertise include challenging traffic projects and urban environments, as well as major industrial and power plant projects.

Building construction

We build apartments as well as commercial and industrial premises in Finland and Russia. We also carry out demanding renovation and repurposing projects. In projects executed with the PPP model, we take care of designing and construction in addition to providing maintenance services for several years.

Our references

Tallinn Airport gears up for traffic growth

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Ore crushing plant for Boliden’s Aitik copper mine

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Seaside homes in the Kahvikortteli residential area in Helsinki, Finland

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Corporate responsibility

As a major player in the construction industry, we take into account both the direct and indirect impacts of our operations on the surrounding community as thoroughly as possible. Our target is to develop our business sustainably over the long term. The expectations and demands of our stakeholders give directions to our work.

Our references

Mastic asphalt for a bridge to Don

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The Rantaväylä tunnel in Tampere was completed six months ahead of schedule

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Renovating the Parliament Building to meet modern requirements

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Financial Statements 2016

PDF (969 KB)

Corporate Governance Statement 2016

PDF (412 KB)

Corporate responsibility review 2016

PDF (280 KB)

Lemminkäinen in brief brochure

PDF (1.2 MB)

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