Lemminkäinen Corporation, Financial Statements Bulletin 2007: Favourable business development, positive outlook for 2008

LEMMINKÄINEN CORPORATION                                                        
STOCK EXCHANGE BULLETIN 14.2.2008, 9:00 am
                                      
LEMMINKÄINEN CORPORATION, FINANCIAL STATEMENTS BULLETIN 2007: 
FAVOURABLE BUSINESS DEVELOPMENT, POSITIVE OUTLOOK FOR 2008 

- Net sales rose 21.1% to EUR 2,174.1 million (1,795.9).                        
- International operations accounted for EUR 581.6 million (530.3) of net
sales. 
- Operating profit grew 16.8% to EUR 126.3 million (108.1). The ratio of
operating profit to net sales was 5.8% (6.0). 
- The profit before taxes was up by 18.0% at EUR 111.2 million (94.2). 
- The return on investment was 20.7% (20.6) and the return on equity was 27.5%
(30.2) 
- The equity ratio was 32.7% (31.2) and gearing 87.2% (105.7). 
- The order book at the end of the accounting period was up by 6.6% at EUR
1,414.1 million (1,326.7). 
- International operations accounted for EUR 284.0 million (331.8) of the order
book 
- Earnings per share were up by 10.9% at EUR 4.29 (3.87). 
- The Board of Directors propose that the Company pay a dividend of EUR 1.80
(1.50) per share. 

The 2007 accounting period overall was a positive one for Lemminkäinen. The good
result was influenced especially by brisk activity in commercial construction   
and profitable property developments. The continued growth of infrastructure    
construction was sustained by major on-going projects. Demand for refurbishment 
contracting and building materials was also good.                               

The net sales of Lemminkäinen rose by 21.1% to EUR 2,174.1 million (1,795.9).   
International operations accounted for a full quarter of the Company's total net
sales.                                                                          

The operating profit was EUR 126.3 million (108.1). The result in Q4 was        
significantly impacted by a EUR 14 million infringement fine imposed by the     
Market Court when it ruled that Lemminkäinen had participated in activities     
contravening competition legislation. Excluding the EUR 14 million non-recurring
fine, the comparable operating profit was EUR 140.3 million, representing 6.5%  
(6.0) of the net sales.                                                         

Earnings per share were EUR 4.29 (3.87).                                        


THE OUTLOOK FOR 2008                                                            

Commercial, office and logistics construction in Finland will continue to be    
quite active, but may slow down towards the end of the year. The number of      
own-development housing starts will decline and selling times of housing units  
will become longer. The construction projects started by Lemminkäinen in 2007   
and already planned for 2008 will keep the company's construction volume at a   
good level in 2008.                                                             

In Russia, demand for industrial, residential and commercial construction is    
still good and the outlook for Lemminkäinen in the country over the next few    
years is promising.                                                             

In infrastructure construction in Finland, 2008 is not expected to be as busy as
last year due mainly to reduced activity in the rock engineering segment. The   
postponement of some major projects will weaken the market situation.           
Lemminkäinen's ongoing, long-term road projects will ensure that the Company has
a reasonable stock of work for 2008 and 2009.                                   

The volume of asphalt-paving work is expected to remain at the same level as in 
2007. Demand for crushing contracting and ready-mix concrete is expected to     
remain good due to ongoing infrastructure projects and the sustained level of   
relatively active building construction. Infrastructure construction activity in
the Baltic Rim region will continue to be brisk.                                

Demand for servicing, maintenance and repair work in technical building services
business area is expected to remain high in Finland. Demand for industrial      
maintenance services is expected to increase both in Finland and abroad.        

The market situation for building materials will remain good on the whole in the
near future, although the slowdown in housing production will contribute towards
weaker demand for products and services. Urban environment construction will    
grow steadily.                                                                  

The outlook for other international operations, e.g. in Poland, India and China,
is expected to remain good.  Major forest-industry projects that are of interest
to Lemminkäinen are being planned in various parts of the world. Demand for     
3G-network construction will continue to grow.                                  

The Group's order book as a whole is good, and the prerequisites for favourable 
business development in 2008 are in place.                                      


ANNUAL GENERAL MEETING, DIVIDEND AND FINANCIAL INFORMATION 2008                 

Lemminkäinen Corporation's Annual General Meeting will be held on 14 March 2008 
at 3.00 p.m. at the Hotel Palace, 10th floor, Eteläranta 10, 00130 Helsinki.    

The Board of Directors of Lemminkäinen Corporation will propose to the Annual   
General Meeting that a dividend of EUR 1.80 (1.50) per share, i.e. a total of   
EUR 30,638,250.00 (25,531,875.00) be paid for the accounting period ending on 31
December 2007. The dividend will be paid to shareholders recorded in the        
Company's shareholders register kept by the Finnish Central Securities          
Depository Ltd on the record date, which is 19 March 2008. The dividend payment 
date will be 28 March 2008.                                                     

The Annual Report for 2007 will be published in Finnish and in English during   
week 10/2008. The interim reports will be published on 8 May, 7 August and 6    
November 2008                                                                   

Lemminkäinen Corporation's stock exchange bulletins can be accessed on the      
Company's website at www.lemminkainen.com.                                      


LEMMINKÄINEN CORPORATION                                                        

Juhani Sormaala                                                                 
Managing Director                                                               

Additional information:                                                         
Juhani Sormaala, Managing Director, tel. +358 2071  53302 
Jukka Ovaska, CFO, tel. + 358 2071 53334                                        

Financial Statements Briefing                                                   

Lemminkäinen will present its year-end financial statements to investors,       
analysts and the press at 10:00 am on Thursday, 14 February at Restaurant       
Sipuli, Kanavaranta 7, Helsinki. Participants are kindly asked to register in   
advance either by phone +358 2071 53520 or by e-mail to                         
matti.aalto@lemminkainen.fi. Background material concerning the financial       
statements as well as the presentation material can be accessed at              
www.lemminkainen.com after the briefing.                                        

APPENDICES                                                                      
Board of Directors' Report 1.1.-31.12.2007                                      
Tabulated Section of the financial statements 

Distribution: OMX Nordic Exchange in Helsinki, key media                        

Lemminkäinen Group operates in all areas of the construction sector. Its main   
business areas are building construction, infrastructure construction, technical
building services and building products. Net sales in 2007 were approximately   
EUR 2.2 billion, of which international operations accounted for more than a    
quarter. The Group employs some 9,200 people. Lemminkäinen Corporation's share  
is listed on the OMX Nordic Exchange in Helsinki.                               



BOARD OF DIRECTORS' REPORT 1.1.-31.12.2007                                      

OPERATING ENVIRONMENT                                                           

The construction sector in Finland has enjoyed a sustained period of favourable 
economic conditions. The total volume of construction grew by approximately 6%  
in 2007, but growth is expected to slow down and settle at about 3% in 2008.    

Approximately 32,000 housing starts were made last year, which was slightly     
fewer than in 2006 (34,000). The housing market remains stable, although the    
selling times of housing units have clearly become longer. There are large      
regional differences.                                                           

The positive development in the construction business in 2007 was above all due 
to active commercial, office and logistics construction. The long-subdued       
industrial construction market appears to be growing once again. Some major     
industrial projects as well as the construction work on the fifth nuclear power 
plant unit and the Talvivaara nickel mine will continue for a long time yet.    
Furthermore, infrastructure construction continued to grow due to major ongoing 
projects. Significant new projects will also be starting up in the coming years.

Refurbishment contracting grew by 2-3% and the growth rate is expected to remain
the same in 2008. Also, the production of the building materials industry grew  
considerably. Basic products, most notably cement, were in greater demand,      
mainly due to considerable production growth in the concrete industry.          

The economies of our neighbouring countries and their construction markets      
developed favourably. In Sweden, the rock engineering market remains good and is
expected to remain at least at the same level for the next few years. In the    
Baltic states, the infrastructure market is still growing, and international    
funding is being allocated for new projects. Finnish industry had many          
investments in progress in Russia, China, India and Eastern Europe. The         
construction of 3G networks continues in the United States and Latin America.   
The deployment of second-generation GSM networks continues in the developing    
countries.                                                                      


GROUP NET SALES, EARNINGS AND BALANCE SHEET                                     

The 2007 accounting period overall was a positive one for Lemminkäinen.         

Net sales rose 21.1% to 2,174.1 EUR million (1,795.9). 73.3% of net sales was   
generated in Finland, 14.0% in other Nordic countries, 3.0% in Russia and       
Eastern Europe, 5.7% in the Baltic states, and 4.0% in other countries.         

The operating profit rose 16.8% and was EUR 126.3 million (108.1). The result in
Q4 was significantly impacted by a EUR 14 million infringement fine imposed by  
the Market Court when it ruled that Lemminkäinen had participated in activities 
contravening competition legislation. Excluding the EUR 14 million non-recurring
fine, the comparable operating profit was EUR 140.3 million, representing 6.5%  
(6.0) of the net sales. The operating margin (operating profit / net sales) was 
5.8%.                                                                           

Earnings per share were up by 10.9% at EUR 4.29 (3.87). The return on investment
was 20.7% (20.6), and the return on equity 27.5% (30.2). The equity ratio was   
32.7% (31.2).                                                                   

The liquid funds at the end of the accounting period were EUR 78.5 million      
(60.6), and interest-bearing liabilities totalled EUR 357.0 million (343.6).    
Gearing was 87.2% (105.7).                                                      

--------------------------------------------------------------------------------
| Group key figures,                    |       2007 |       2006 |       2005 |
--------------------------------------------------------------------------------
| EUR million                           |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which                   |    2,174.1 |    1,795.9 |    1,601.7 |
--------------------------------------------------------------------------------
| operations abroad                     |      581.6 |      530.3 |      499.6 |
--------------------------------------------------------------------------------
| Operating profit                      |      126.3 |      108.1 |       72.5 |
--------------------------------------------------------------------------------
| Operating margin, %                   |        5.8 |        6.0 |        4.5 |
--------------------------------------------------------------------------------
| Profit before taxes                   |      111.2 |       94.2 |       65.9 |
--------------------------------------------------------------------------------
| Profit for accounting period          |       80.6 |       72.9 |       48.5 |
--------------------------------------------------------------------------------
| Profit share of parent company's      |       72.9 |       65.8 |       43.7 |
| shareholders                          |            |            |            |
--------------------------------------------------------------------------------
| Earnings per share, EUR               |       4.29 |       3.87 |       2.57 |
--------------------------------------------------------------------------------
| Dividend per share, EUR               |    1.80 1) |       1.50 |       1.00 |
--------------------------------------------------------------------------------
| Return on investment, %               |       20.7 |       20.6 |       16.5 |
--------------------------------------------------------------------------------
| Return on equity, %                   |       27.5 |       30.2 |       24.5 |
--------------------------------------------------------------------------------
| Equity ratio, %                       |       32.7 |       31.2 |       31.0 |
--------------------------------------------------------------------------------
| Gearing, %                            |       87.2 |      105.7 |      102.9 |
--------------------------------------------------------------------------------
| Liquid funds                          |       78.5 |       60.6 |       42.4 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities          |      357.0 |      343.6 |      264.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1) Board of Directors' proposal to the AGM.                                     


BUSINESS SECTORS                                                                

Paving and Mineral Aggregates Division                                          

The net sales of the Paving and Mineral Aggregates Division rose 13.8% to EUR   
636.6 million (559.0). The Division generated 50.5% of its net sales in Finland,
29.2% in other Nordic countries, and 20.3% in the Baltic states and Russia.     

The Division's operating profit was EUR 26.9 million (35.5). Excluding the EUR  
14 million infringement fine imposed on Lemminkäinen by the Market Court, the   
Division's comparable operating profit was EUR 40.9 million. The order book fell
by 7.4% and at the end of the accounting period was EUR 171.4 million (185.1),  
of which operations abroad accounted for EUR 93.0 million (129.8).              

--------------------------------------------------------------------------------
| Paving and Mineral Aggregates         |       2007 |       2006 |       2005 |
| Division                              |            |            |            |
--------------------------------------------------------------------------------
| EUR million                           |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which                   |      636.3 |      559.0 |      514.7 |
--------------------------------------------------------------------------------
| operations abroad                     |      314.9 |      276.6 |      239.9 |
--------------------------------------------------------------------------------
| Operating profit                      |       26.9 |       35.5 |       25.2 |
--------------------------------------------------------------------------------
| Operating margin, %                   |        4.2 |        6.3 |        4.9 |
--------------------------------------------------------------------------------
| Order book at end of period           |      171.4 |      185.1 |      130.2 |
--------------------------------------------------------------------------------
| Personnel (average)                   |      2,952 |      2,733 |      2,579 |
--------------------------------------------------------------------------------

The net sales of the Paving and Mineral Aggregates Division continued to grow,  
and, considering the market situation, its profit was good. The volume of paving
work remained on the same level as in 2006. Competition in the asphalt paving   
industry remained fierce, which forced prices down to a poor level.             

Lemminkäinen retained its position as the leading paving contractor in Finland. 
The Company also has strong market positions in Norway, Denmark and the Baltic  
states.                                                                         

In the Nordic countries, the strongest growth in paving works was in Norway, and
the price of asphalt remained at a good level. In Denmark, the market was stable
and the price level reasonable. In Sweden, Kvalitetsasfalt i Mellansverige Ab   
was sold. The transaction became effective 7 August 2007 and had no essential   
bearing on the Division's profits.                                              

In the Baltic states, EU funding increased the number of road projects.         
Government funding for roads is on the increase in both Latvia and Lithuania in 
particular.                                                                     

During the contracting season, a total of 5.4 (5.3) million tonnes of asphalt   
was produced at 96 (95) production plants. More than half of the total was      
produced abroad.                                                                

The sustained level of active construction work kept demand for mineral         
aggregate at a good level. The Division produced 16.5 million tonnes (16.6) of  
mineral aggregates in 2007. Lemminkäinen acquired Lõhketööd OÜ, an Estonian     
construction company that specialises in quarrying, blasting and demolition     
work. With this transaction, Lemminkäinen aims to expand its quarrying          
operations and to develop the processing of mineral aggregates in Estonia.      

The ready-mix concrete producer Forssan Betoni Oy achieved a new production     
record, almost 250,000 cubic metres, and significantly increased its net sales. 
Among other contracts, the company was the concrete supplier for Talvivaara's   
nickel mine investment.                                                         

There were occasional shortages of both mineral aggregate in the metropolitan   
area and the cement that is used for concrete production.                       

The total volume of paving work in Finland this year should remain at the same  
level as in 2007. The demand for crushing contracting and ready-mix concrete is 
expected to remain good, mainly due to ongoing infrastructure projects and      
relatively active building construction.                                        

The situation on the Norwegian paving market continues to be reasonably good.   
The volume of paving works in Denmark will fall slightly once the major motorway
projects come to an end. The demand for infrastructure construction will        
increase in the Baltic states.                                                  


Building Materials Division                                                     

Three Lemminkäinen subsidiaries (Lemminkäinen Katto Oy, Lemminkäinen Betonituote
Oy and Omni-Sica Oy) are responsible for the business operations of the Building
Materials Division.                                                             

The net sales of the Building Materials Division rose by 28.2% to EUR 133.8     
million (104.4). The Division generated 8.0% of its net sales abroad, mainly in 
Russia and the countries of the Baltic Rim region. The Division's operating     
profit was 11.1 million (5.0). The order book grew by 61.1% and at the end of   
the accounting period was EUR 37.7 million (23.4).                              

--------------------------------------------------------------------------------
| Building Materials Division           |       2007 |       2006 |       2005 |
--------------------------------------------------------------------------------
| EUR million                           |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which                   |      133.8 |      104.4 |      100.3 |
--------------------------------------------------------------------------------
| operations abroad                     |       10.7 |        7.7 |        6.4 |
--------------------------------------------------------------------------------
| Operating profit                      |       11.1 |        5.0 |        1.5 |
--------------------------------------------------------------------------------
| Operating margin, %                   |        8.3 |        4.8 |        1.5 |
--------------------------------------------------------------------------------
| Order book at end of period           |       37.7 |       23.4 |       13.3 |
--------------------------------------------------------------------------------
| Personnel (average)                   |        749 |        609 |        599 |
--------------------------------------------------------------------------------
	                                                                               
The profitability of the Building Materials Division in 2007 was good. The good 
demand that continued throughout the contracting season and the corporate       
acquisitions that were made both contributed towards the good result. The demand
for roofing materials continued to grow. Increased imports of roofing materials,
especially from Russia and some European countries, sustained the fierce level  
of competition on the roofing materials market in Finland. Exports of           
Lemminkäinen's roofing materials mainly to Russia and the countries of the      
Baltic Rim region increased steadily. Roofing contracting experienced a lack of 
skilled workforce. Roofing contracting was also impacted periodically by long   
delivery times for rigid mineral wool insulation.                               

Demand for pre-cast concrete staircase and wall units increased in commercial   
and office construction. In addition to domestic supply, staircase units were   
delivered to Sweden and Norway. Demand for the types of staircase units used in 
low-density residential construction also increased. The cement availability    
problems that beset the industry did not have a significant effect on           
Lemminkäinen's production of pre-cast concrete units.                           

Demand for urban environment products and related installation services has     
grown steadily in recent years. Investments continue to be made in the          
construction of new sports and athletics facilities and the refurbishment of old
ones.                                                                           

Lemminkäinen strengthened its market position by acquiring full ownership of    
K.M. Repo Oy in Savonlinna in February 2007. The company manufactures and sells 
concrete units and ready-mix concrete. Since the acquisition, the company has   
been operating under the name Elemento Oy Savonlinna.                           

The overall market situation of the building products business area will remain 
good for some time. The slowdown in housing construction will weaken demand for 
products and services. Urban environment construction will grow steadily. An    
increase in demand is expected in both imports and exports of building          
materials. Higher prices for raw materials such as bitumen and cement will raise
production costs.                                                               

The aim of the Building Materials Division is to maintain its strong market     
position in all of its business areas in Finland and to grow its export business
with Russia and the countries of the Baltic Rim region.                         


Lemcon Ltd                                                                      

Lemcon's net sales rose to EUR 389.9 million (344.0). The company generated     
50.9% of its net sales in Finland, 13.8% in other Nordic countries, 13.5% in    
Eastern Europe and the Baltic states, 12.0% in North and South America, and 9.8%
in other countries. The company expanded its business into a number of new      
countries, most notably India, Tanzania, Australia, Paraguay, Bolivia and El    
Salvador.                                                                       

Lemcon's operating profit was EUR 13.0 million (12.5) and the profit before     
taxes EUR 10.2 million (11.1). The order book decreased by 4.2% and at the end  
of the accounting period was EUR 346.7 million (361.9), of which operations     
abroad accounted for 46.0% (48.1).                                              

--------------------------------------------------------------------------------
| Lemcon Ltd                            |       2007 |       2006 |       2005 |
--------------------------------------------------------------------------------
| EUR million                           |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which                   |      389.9 |      344.0 |      328.8 |
--------------------------------------------------------------------------------
| operations abroad                     |      191.4 |      191.6 |      210.6 |
--------------------------------------------------------------------------------
| Operating profit                      |       13.0 |       12.5 |       15.3 |
--------------------------------------------------------------------------------
| Operating margin, %                   |        3.3 |        3.6 |        4.6 |
--------------------------------------------------------------------------------
| Profit before taxes                   |       10.2 |       11.1 |       16.7 |
--------------------------------------------------------------------------------
| Order book at end of period           |      346.7 |      361.9 |      439.5 |
--------------------------------------------------------------------------------
| Personnel (average)                   |      1,043 |        993 |        893 |
--------------------------------------------------------------------------------

Lemcon's order book for infrastructure construction was good and its ongoing    
contracts are of long duration. Major transport infrastructure projects helped  
the company to achieve profitable volume growth.                                

In Sweden, Lemcon's position as a tunnel and rock engineering contractor was    
further strengthened by the award of some major tunnel construction contracts.  

In Finland, demand for Lemcon's project management services was reasonably good 
due to active commercial and office construction. Abroad, the focus was on      
industrial construction, and the company was actively involved in the plant     
projects of Finnish industrial companies around the world, including India for  
the first time. A number of major projects were completed towards the end of the
year.                                                                           

In accordance with Lemcon's revised Russian strategy, the company started up its
own production in both the housing and office segments. A decision was made to  
start the construction of a building consisting of 530 housing units in St.     
Petersburg. In the province of Kaluga, a project for a 135-hectar industrial    
park was launched. The aim is to offer companies investing in Russia a fast and 
low-risk way to establish themselves in the growing Russian market.             

Lemcon also won several significant contracts in Russia. A contract for the     
construction of a lightweight concrete production plant was signed with Danish  
H+H International A/S as well as a contract for the construction of a production
plant for Nokia Tyres plc. Both projects are in the St. Petersburg area. A      
contract for an office and logistics centre in the Moscow area was signed with  
Tikkurila Oy.                                                                   

Proceedings are underway at the court of arbitration in Stockholm concerning    
Lemcon's contract for the construction of the MEGA shopping centre in St.       
Petersburg, which IKEA terminated.                                              

The Botnia S.A. pulp mill in Uruguay and a hotel project in Tallinn were        
completed at the end of the year. In Hungary, a logistics centre was built for  
Nokia. A contract was signed with UPM Raflatac for the construction of a        
labelstock factory in Poland. In the Chennai region of India, Lemcon built a    
logistics centre for Nokia and a production plant for Perlos.                   

Lemcon Networks maintained its position as a global supplier of project         
management , contracting and technical expertise services in the field of       
telecommunications network construction. In addition to Europe, the company won 
new business in Asia, South America and Africa.                                 

Lemminkäinen's ongoing, long-term transport infrastructure projects will ensure 
that it has a reasonable stock of work for 2008 and 2009. Due mainly to reduced 
activity in rock engineering, however, infrastructure construction in Finland is
not expected to be as active in 2008 as it was in 2007. The postponement of some
major projects will weaken the market situation. Moreover, the slowdown in      
housing construction will be reflected in infrastructure construction.          

The positive developments in the Russian economy are reflected strongly in the  
consumption demand of the middle class. Foreign investments are increasing      
rapidly, and housing construction is active. The prospects for Lemminkäinen in  
Russia over the next few years are promising.                                   

The prospects for other international operations are expected to remain good in 
Poland, India and China. Major forest industry projects that are of interest to 
Lemminkäinen are being planned in various parts of the world. Telecommunications
network and 3G network construction is expected to continue to grow.            


Oy Alfred A. Palmberg Ab                                                        

The net sales of Palmberg Group rose by 31.3% to EUR 837.0 million (637.5), of  
which 6.8% was generated in Sweden. The operating profit was up 34.0% at EUR    
70.2 million (52.4). The profit before taxes was EUR 65.5 million (46.0). The   
order book grew by 9.5% and at the end of the accounting period was EUR 746.4   
million (681.5). International operations accounted for 3.3% (3.8) of the order 
book.                                                                           

--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab,             |       2007 |       2006 |       2005 |
--------------------------------------------------------------------------------
| EUR million                           |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which                   |      837.0 |      637.5 |      517.3 |
--------------------------------------------------------------------------------
| operations abroad                     |       56.5 |       45.4 |       30.8 |
--------------------------------------------------------------------------------
| Operating profit                      |       70.2 |       52.4 |       28.3 |
--------------------------------------------------------------------------------
| Operating margin, %                   |        8.4 |        8.2 |        5.5 |
--------------------------------------------------------------------------------
| Profit before taxes                   |       65.5 |       46.0 |       25.2 |
--------------------------------------------------------------------------------
| Order book at end of period           |      746.4 |      681.5 |      366.9 |
--------------------------------------------------------------------------------
| Personnel (average)                   |      2,425 |      2,165 |      1,984 |
--------------------------------------------------------------------------------

The good result was mainly due to the sustained level of active office          
construction as well as profitable property developments.                       

The shortage of skilled foremen and construction workers in the industry        
continued, but Palmberg was very successful in its recruitment efforts.         

The interest of foreign real estate investors in Finland remained good and the  
investment return requirements remained unchanged. New investors also entered   
the market. Palmberg sold, amongst others, three shopping centres and several   
Tokmanni shops to foreign real estate investors.                                

In Finland, the number of Palmberg's own development housing starts, 852, was   
well down on the previous year (1,558). The start-up of housing production was  
still hampered by the lack of sites in the metropolitan area, prolonged building
permit processes, and in some cases local demand factors. The market situation  
is still relatively good, but the selling times of housing units have become    
longer.                                                                         

--------------------------------------------------------------------------------
| Palmberg's private-sector        |    1-9/2007 |     1-9/2006 |    1-12/2006 |
| housing production, units        |             |              |              |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Housing starts                   |         852 |        1,558 |        1,249 |
--------------------------------------------------------------------------------
| Housing units sold               |         883 |        1,156 |        1,258 |
--------------------------------------------------------------------------------
| Unsold completed units           |         283 |           83 |           74 |
--------------------------------------------------------------------------------
| Completed                        |       1,488 |        1,173 |        1,068 |
--------------------------------------------------------------------------------
| Under construction at the end of |       1,063 |        1,698 |        1,313 |
| the period                       |             |              |              |
--------------------------------------------------------------------------------

Most of the unsold completed units were located outside the Helsinki
Metropolitan Area. 

At the end of the accounting period Palmberg owned a total of 815,000 m² of     
unused building rights, of which about 590,000 m² were residential building     
rights. The company also has binding or conditional co-operation and zoning     
agreements for about 607,000 m², of which about 285,000 m² are residential      
building rights. Market conditions permitting, the company has the possibility  
to increase its housing production thanks to its good stock of building plots.  
The balance-sheet value of the building plots is EUR 80.5 million. At the       
present rate of production, the company owns enough unused building rights to   
meet its needs for more than four years.                                        

Palmberg's housing production in Russia is expanding. Palmberg acquired the     
business operations of construction company Sulo Lipsanen Oy. The company has   
experience in housing construction in Russia, in Svetogorsk and St. Petersburg  
in particular. New projects have been launched in the St. Petersburg region.    

Palmberg's housing production also grew in Sweden.                              

The commercial construction scene was very active. A number of projects were    
completed and others launched during the year. The most important project to be 
completed was the Galleria Shopping Centre in Lappeenranta.                     

Office construction is not expected to grow, but Palmberg has several major     
projects underway in the metropolitan area. These include an office complex for 
Varma Mutual Pension Insurance Company in Salmisaari, Helsinki, an office       
building for Fennia Mutual Insurance Company in Pasila, Helsinki, and the       
Polaris Business Park in Espoo.                                                 

Logistics construction continued actively, in South-Eastern Finland in          
particular. The most significant project was the large Tokmanni logistics centre
in Mäntsälä.                                                                    

Industrial construction, which has been subdued for a long time, began to grow  
due to major long-term investment projects. Palmberg signed contracting         
agreements with Talvivaara's nickel mine project for several concrete contracts.

Hotel construction in Finland has concentrated in Northern Finland and the      
metropolitan area. Last year saw the completion of the hotel construction       
projects built by Palmberg in Sotkamo and Oulu and new projects were launched in
Kittilä and Kuopio.                                                             

In Finland, commercial, office and logistics construction will continue on quite
an active level, but may slow down towards the end of the year. The decrease in 
the number of Palmberg's own development housing starts and the longer selling  
times of housing units are the clearest indications that the peak of the        
economic cycle has passed.                                                      

The new projects that Palmberg launched in 2007 will ensure that the company's  
construction volume will remain at a good level in 2008.                        


Tekmanni Oy                                                                     

Tekmanni Oy's business areas are technical building services, technical facility
services and industrial services.                                               

Tekmanni Oy's net sales rose by 20.1% to EUR 230.2 million (191.7), of which    
4.2% was generated in Sweden and Russia.                                        

The operating profit was EUR 11.9 million (6.9) and the profit before taxes was 
EUR 13.6 million (7.8). The order book grew by 49.4% to EUR 111.9 million       
(74.9). International operations accounted for 5.7% (2.7) of the order book.    

--------------------------------------------------------------------------------
| Tekmanni Oy,                          |       2007 |       2006 |       2005 |
--------------------------------------------------------------------------------
| EUR million                           |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which                   |      230.2 |      191.7 |      191.1 |
--------------------------------------------------------------------------------
| operations abroad                     |        9.7 |        9.6 |       11.8 |
--------------------------------------------------------------------------------
| Operating profit                      |       11.9 |        6.9 |        6.8 |
--------------------------------------------------------------------------------
| Operating margin %                    |        5.2 |        3.6 |        3.5 |
--------------------------------------------------------------------------------
| Profit before taxes                   |       13.6 |        7.8 |        7.4 |
--------------------------------------------------------------------------------
| Order book at end of period           |      111.9 |       74.9 |       61.5 |
--------------------------------------------------------------------------------
| Personnel (average)                   |      1,918 |      1,812 |      1,745 |
--------------------------------------------------------------------------------


The net sales and operating profit showed a very positive development in all    
business sectors. Active commercial and office construction maintained the      
demand for Tekmanni's services at a good level. In technical building services, 
the demand for maintenance, servicing and repair work was high, The net sales of
Tekmanni Service Oy, which specialises in these services, rose profitably by    
40%. Demand for industrial services remained stable.                            

The implemented structural reorganisation at Tekmanni, in which acquisitions and
the corporatisation of local units are used to improve regional service         
capabilities, had a positive impact on the favourable development of the        
company's business.                                                             

Tekmanni strengthened its regional service capabilities in electrical           
contracting and electrical maintenance by acquiring a majority interest in Ab   
Instel Oy from Pietarsaari and full ownership of  Sähköraisio Oy. Tekmanni's    
HVAC expertise was strengthened by acquiring  Rakennus-Putkitus Oy from         
Uusikaupunki. In June 2007 the company expanded its expertise into the area of  
refrigeration technology by acquiring Jäähdytystaito Oy in Vantaa, which was    
merged into Tekmanni Service Oy at the end of the year.                         

In June 2007 the business operations of the technical building services units of
Hyvinkää, Porvoo, Lohja, Kerava, Hämeenlinna and Forssa were corporatised to    
form a new company named Tekmanni Uusimaa Oy. It acts as a multi-skilled        
installation and contracting service provider in the provinces of Uusimaa and   
Kanta-Häme.                                                                     

Tekmanni has fixed places of business in 30 localities, from where it is also   
able to serve its customers that operate on a national level. In July 2007,     
Tekmanni Service concluded an agreement with Oy Teboil Ab for the servicing and 
maintenance of technical systems at approximately 500 service stations.         

In technical building services, the demand for maintenance, servicing and repair
work is expected to remain active in Finland. The market in this business sector
is expected to slow down slightly towards the end of the year. in 2007 Tekmanni 
Service expanded its business into Russia, where the company believes there is  
demand for its services.. There the company plans to introduce the preventative 
facility servicing model that it has developed. The demand for industrial       
maintenance services is expected to grow in Finland and abroad.                 


THE GROUP'S ORDER BOOK                                                          

The Group's order book grew to EUR 1,414.1 million (1,326.7). The market        
breakdown of the order book was Finland 79.9%, the other Nordic countries 11.0%,
the Baltic countries 3.4%, Russia and Eastern Europe 3.4% and other countries   
2.3%.                                                                           

--------------------------------------------------------------------------------
| Order book by business sector         |       2007 |       2006 |       2005 |
--------------------------------------------------------------------------------
| EUR million                           |            |            |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral Aggregates         |      171.4 |      185.1 |      130.2 |
| Division                              |            |            |            |
--------------------------------------------------------------------------------
| Building Materials Division           |       37.7 |       23.4 |       13.3 |
--------------------------------------------------------------------------------
| Lemcon Ltd                            |      346.7 |      361.9 |      439.5 |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab              |      746.4 |      681.5 |      366.9 |
--------------------------------------------------------------------------------
| Tekmanni Oy                           |      111.9 |       74.9 |       61.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group total, of which                 |    1,414.1 |    1,326.7 |    1,011.3 |
--------------------------------------------------------------------------------
| international orders                  |      284.0 |      331.8 |      343.4 |
--------------------------------------------------------------------------------


Significant orders received in 2007                                             

Lemcon built a logistics centre for Nokia in Chennai, India. The EUR 17 million 
contract includes both design and construction works. (Bulletin 8.1.2007)       

Lemcon was awarded a tunnel construction contract worth EUR 43 million in       
Sweden. The new railway tunnel will be built on a section of track that is being
upgraded between Härnösand and Veda and forms part of the Ådalsbana line.       
(Bulletin 10.1.2007)                                                            

Lemcon is building Oy Gustav Paulig Ab's new roastery in Vuosaari, Helsinki.    
With a gross floor area of approx. 35,000 m2, the building comprises the office,
warehousing and production facilities. (Bulletin 5.4.2007)                      

Lemminkäinen Corporation and the Finnish Road Administration signed a service   
agreement whereby the Company assumes responsibility for 12 years for the       
condition of the main roads in the Häme, Uusimaa and Turku road districts of    
Finland. This service agreement is the first of its kind in Finland. The        
contract is worth approx. EUR 40 million. (Bulletin 19.4.2007)                  

Lemcon won yet another tunnel construction contract on the Ådalsbana line. When 
completed, the 4.5 km long Kroksberg tunnel will be the longest tunnel on the   
Ådalsbana line. The contract is worth EUR 54 million. (Bulletin 26.4.2007)      

Palmberg signed a contracting agreement with Talvivaara concerning concrete work
of the Talvivaara nickel mine project. The contract is worth about EUR 15       
million. Forssan Betoni Oy had already earlier made a contract for the concrete 
deliveries for the entire mine project. (Bulletin 26.6.2007)                    

Lemcon won significant new construction contracts in Russia. Lemcon and H+H     
International A/S, a Danish manufacturer of lightweight concrete elements,      
signed an agreement to build a lightweight concrete production plant some 75    
kilometres southwest of St. Petersburg in the Volosovo district of Leningrad    
Oblast. An office and logistics centre is to be built in Moscow for Tikkurila.  
Lemcon will also carry out the technical construction works for the enlargement 
of Nokian Tyres' production plant in St. Petersburg. The combined value of the  
new construction contracts is approx. EUR 40 million. (Bulletin 1.8.2007)       

Lemminkäinen will construct a building of 530 housing units in St. Petersburg.  
The building schedule of the 17-storey building in the district of Obuhovo is   
two years. The total value of the project is approx. EUR 50 million. (Bulletin  
6.9.2007)                                                                       

A construction consortium formed by Lemminkäinen Group's Lemcon Ltd and         
Kesälahden Maansiirto Oy will carry out the Highway 6 improvement work for the  
Finnish Road Administration. The road will be widened to four lanes on the      
Kärki-Mattila and Mattila-Muukko sections of the Lappeenranta bypass. The       
contract is worth EUR 101 million in total. The road will be paved by           
Lemminkäinen Paving Unit (Bulletin 9.10.2007)                                   

Tekmanni Service Oy signed an agreement for servicing the technical building    
systems of the Sokos hotels in St. Petersburg. The company will carry out the   
scheduled servicing and necessary repair work on these new hotels' technical    
building systems. The hotels will open by spring 2008. (Bulletin 5.10.2007)     

Lemcon Ltd will build a labelstock factory for UPM Raflatac in Poland. The value
of UPM Raflatac‘s total investment is EUR 90 million. The construction works    
will be completed in December 2008 (Bulletin 26.9.2007)                         

Lemminkäinen will build a shopping centre in Oulu. The complex will include a   
Bauhaus DIY shop, an interior decoration department store as well as a home     
appliance and decoration shopping centre. The gross floor area is 31,000 m2. The
total value of the project is EUR 40 million. The construction works started in 
the autumn of 2007, and the shopping centre will be completed by Christmas 2008.


FINANCING                                                                       

According to the cash flow statement, the cash flow from operating activities   
was EUR 79.6 million (-7.2), the cash flow from investing activities EUR -29.5  
million (-14.4) and the cash flow from financing activities EUR -32.0 million   
(40.4). The cash flow for the accounting period includes dividends paid in 2006 
totalling EUR 27.4 million (18.5). The EUR 14 million infringement fine imposed 
by the Market Court has been recorded as a short-term, non-interest bearing     
debt.                                                                           

Interest-bearing liabilities at the end of the accounting period were EUR 357.0 
million (343.6) and liquid funds were EUR 78.5 million (60.6). Interest-bearing 
net debt was EUR 278.50 million (283.0).                                        

The Company applies hedge accounting to interest rate swap contracts that were  
used to hedge loans of a nominal value of EUR 74.3 million with                 
floating-interest rate loans, which are tied to the six-month euribor. The      
hedgings have been made efficient and the change in fair value of the interest  
rate swap agreements are recognised directly in the revaluation reserve under   
the shareholders' equity as per the accounting principles for the financial     
statements.                                                                     

Net financing expenses were EUR -16.0 million (-14.9) representing 0.7% (0.8) of
net sales. The equity ratio was 32.7% (31.2) and gearing 87.2 % (105.7).        


SHARES AND SHARE CAPITAL                                                        

The listed price of Lemminkäinen Corporation's share was EUR 36.10 (30.50) at   
the beginning of the accounting period and EUR 31.50 (36.10) at the end of the  
accounting period. The market capitalisation at the end of the accounting period
was EUR 536.2 million (614.5). Altogether 5,203,588 shares (4,113,868) were     
traded during the accounting period. The total value of the trade was EUR 233.6 
million (139.9). At the end of the year the Company had 3,643 (3,535)           
shareholders.                                                                   

Lemminkäinen's share capital is EUR 34,042,500. The Company has one share series
and the total number of issued shares is 17,021,250.                            


INVESTMENTS                                                                     

Investments in the accounting period amounted to EUR 61.4 million (48.7). The   
investments were mainly purchases of paving, crushing and excavation equipment, 
production equipment for building materials, and building construction          
equipment. The investments also include some acquisitions of businesses and     
enterprises.                                                                    


PERSONNEL                                                                       

The average number of employees in the Group during the accounting period was   
9,201 (8,418), of whom 72% (73) worked in Finland, 11% (11) in other Nordic     
countries, 11% (10) in the Baltic states and 6% (6) in other countries.         

--------------------------------------------------------------------------------
| Personnel (average),              |        2007 |         2006 |        2005 |
--------------------------------------------------------------------------------
| persons                           |             |              |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Hourly paid workers               |       6,084 |        5,480 |       5,162 |
--------------------------------------------------------------------------------
| Salaried staff                    |       3,117 |        2,938 |       2,750 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total personnel, of whom          |       9,201 |        8,418 |       7,912 |
--------------------------------------------------------------------------------
| working abroad                    |       2,565 |        2,235 |       1,965 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at end of period        |       8,718 |        8,087 |       7,112 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total wages, salaries and other   |             |              |             |
| rewards                           |             |              |             |
--------------------------------------------------------------------------------
| for the accounting period, EUR    |       327.2 |        288.0 |       268.5 |
| million                           |             |              |             |
--------------------------------------------------------------------------------


MARKET COURT'S DECISION IN THE ASPHALT INDUSTRY CARTEL CASE                     
(Bulletins 19.12.2007)                                                          

In December the Market Court ordered seven asphalt industry companies to pay a  
total of EUR 19.4 million in infringement fines for contravention of competition
laws, EUR 14 million of which was imposed on Lemminkäinen. The Finnish          
Competition Authority had proposed to the Market Court that Lemminkäinen be     
fined EUR 68 million.                                                           

The Market Court ruled that the companies had contravened competition laws in   
road paving operations in Finland. The first infringements were considered to   
have taken place in 1994 and the last in 2001. Road paving operations in Finland
accounted for approximately 10% of Lemminkäinen Group's net sales in 2001.      

Lemminkäinen acknowledges that the proceedings at the Market Court have, as     
such, shown that the conduct of business by Lemminkäinen in the Finnish road    
paving market has, to some extent, included aspects that are in contravention of
competition legislation. Lemminkäinen disagrees, however, with the Market Court 
on both the extent of the geographical area and the period of time concerned,   
and Lemminkäinen has appealed the decision to the Supreme Administrative Court. 
Lemminkäinen also considers the amount of the infringement fine imposed on it to
be excessive both in the light of the evidence produced and the accepted legal  
practice.                                                                       

Lemminkäinen does not, under any circumstances, approve of the use of illegal   
procedures in its operations. For several years now, particular attention has   
been given within the Group to training and guidance in issues concerning       
competition law.                                                                

In addition to Lemminkäinen, the Finnish Competition Authority and some asphalt 
industry companies have appealed the decision to the Supreme Administrative     
Court. Irrespective of the future of the proceedings, the competition           
infringement fine of EUR 14 million imposed on Lemminkäinen by the Market Court 
was charged as an expense in the fourth quarter of 2007. Since the decision has 
been appealed, the total amount of the fine may change.                       


THE RISKS AND UNCERTAINTIES OF THE NEAR FUTURE                                  

The risks of Lemminkäinen's business operations have been categorised into six  
groups, which include market risks, project risks, financing risks, credit-loss 
risks, environmental risks as well as accidents and damages. In order to control
the major, identified risks, necessary measures have been specified.            

The most significant risk for Lemminkäinen in the near future is the market     
risk. International financial market turbulence may extend to Finland and       
reflect on the housing demand and other investments.                            

The starting point for Lemminkäinen's strategy is to direct operations to       
business sectors that differ from one another in their business cycle           
behaviours. The fluctuation in the demand for new construction in Finland is    
balanced by international business operations as well as by repair construction 
and maintenance. The Group's international business operations account for more 
than a quarter of its net sales and the percentage is on the increase. The      
Group's repair construction and maintenance operations account for approximately
40% of its business operations.                                                 

The Company's Annual Report and its website provide more information on         
Lemminkäinen's risk management.                                                 


RESEARCH AND DEVELOPMENT                                                        

Lemminkäinen's research and development work focuses on the Company´s           
development of operational prerequisites and the quality assurance of products  
and services. Taking into account safety issues and environmental effects are   
important principles in Lemminkäinen's development work. Products and services  
are developed in long-term collaboration with customers.                        

The Group's business units and subsidiaries are responsible for their own       
research and development activities. Lemminkäinen's Central Laboratory carries  
out R&D at Group level. In 2007, the Group's research and development           
expenditure represented for 0.4% of net sales.                                  


THE ENVIRONMENT                                                                 

Lemminkäinen's values include environment-considerate construction operations.  
Lemminkäinen Group takes into account the life-cycle and environmental          
perspectives when developing its operations, products and services. Environment 
issue management and the environmental effects of the Group's operations are    
under constant supervision with internal monitoring and control programs.       

Lemminkäinen Corporation donated EUR 100,000 to the John Nurminen Foundation    
Clean Baltic Sea project. Lemcon Ltd also donated its project-management        
expertise to the project. This project helped perform an effective chemical     
phosphorus removal at the major St. Petersburg wastewater treatment plants.     

The Company's Annual Report and its website provide more information on         
Lemminkäinen's environmental issues.                                            


DECISIONS OF THE ANNUAL GENERAL MEETING AND CORPORATE GOVERNANCE 

The Annual General Meeting of Lemminkäinen Corporation held on 16 March 2007    
adopted the 2006 annual financial statements and granted the Board of Directors 
and the Managing Director discharge from liability. In accordance with the Board
of Directors' proposal, the Annual General Meeting decided to pay a dividend of 
EUR 1.50 per share, i.e. a total dividend of EUR 25,531,875.00. The record
date of the dividend payment was 21 March 2007 and the date of dividend payment 
was 28 March 2007.                                                              

Messrs. Berndt Brunow, Heikki Pentti, Teppo Taberman and Sakari Tamminen were   
re-elected to serve as members of the Company's Board of Directors. Ms. Kristina
Pentti, M.Sc., was elected to serve as a new member of the Company's Board of   
Directors.                                                                      

PricewaterhouseCoopers Oy, a firm of authorised public accountants, was elected 
to serve as the Company's auditors, with Mr. Jan Holmberg, A.P.A. acting as the 
auditor in charge.                                                              

The Board of Directors, at their organising meeting, elected Heikki Pentti to   
serve as the Chairman and Teppo Taberman to serve as the Vice-Chairman.         

The Board of Directors has chosen from among its members a Nominating Committee,
an Audit Committee, and a Remuneration and Appointments Committee. The          
committees assist the Board of Directors by preparing pertinent matters for the 
Board's consideration.                                                          

The role of the Nominating Committee is to prepare for the Annual General       
Meeting a proposal on the number of members of the Board of Directors as well as
the names of the members and the remuneration that should be paid to them. Since
February 2007, Mr. Berndt Brunow has been the Chairman of the Nominating        
Committee, with Messrs. Teppo Taberman and Sakari Tamminen serving as committee 
members.                                                                        

The role of the Audit Committee is to scrutinise the contents of the year-end   
financial statements and interim financial reviews as well as the sufficiency of
the Company's risk management and internal audit and control systems, and it    
deals with the reports and plans of the Company's internal auditing.            
Furthermore, the Board of Directors' Audit Committee assesses the accounting    
quality, independence and costs as well as prepares the election for accountants
for the Board of Directors. The meetings of the Audit Committee shall be        
attended by the Company's Auditor and Internal Auditor as well as management    
representatives as and when necessary. The Chairman of the Audit Committee is   
Mr. Sakari Tamminen, with Messrs. Berndt Brunow, Teppo Taberman and Heikki      
Pentti serving as committee members.                                            

The Remuneration and Appointments Committee deals with matters relating to the  
appointment of senior executives as well as their pay, rewards and benefits.    
Final decisions are made by the Board of Directors on the basis of the          
Committee's proposals. The Chairman of the Remuneration and Appointments        
Committee is Mr. Heikki Pentti, with Messrs. Berndt Brunow and Teppo Taberman   
serving as committee members.                                                   

Since the Board of Directors' number of members is low, and since the Board of  
Directors convenes often, the Board of Directors is able to manage duties       
relating to auditing, appointments and remuneration also at full strength. The  
Board of directors can also choose to deal with procedural issues of the Audit  
Committee as well as the Remuneration and Appointments Committee on the decision
of the Chairman.                                                                


THE GROUP'S STRATEGY                                                            

The Board of Directors revised the Group's business strategy and strategic      
target levels (Bulletin 15.2.2007). The main strategic objectives are profitable
growth and the maintenance of good solvency. Good profitability is regarded as a
long-term average return on investment exceeding 18%. In 2007, the return on    
investment was 20.7% (20.6). Good solvency is regarded as an equity ratio       
exceeding 35%. In 2007, the equity ratio was 32.7% (31.2).                      

The Company's website provides more information on the strategy.                


LEMMINKÄINEN'S NEW STRUCTURE EFFECTIVE 1.1.2008                                 

Lemminkäinen Group was reorganised into four business sectors with effect from 1
January 2008. The business sectors are Building Construction, Infrastructure    
Construction, Technical Building Services, and Building Products.               

The new structure supports the confirmed strategy of February 2007 and clarifies
the Group's status in both the building construction market as well as in the   
infrastructure construction sector. The new operating models correspond to the  
needs of the Group's customer structure and improve Lemminkäinen's              
competitiveness.                                                                

Building construction and infrastructure construction are the responsibility of 
two new companies: Lemminkäinen Talo Oy and Lemminkäinen Infra Oy.              

Lemminkäinen Talo Oy was formed from the Palmberg Group and the operations of   
Lemcon Ltd except for its infrastructure business (Lemcon Infra). Lemminkäinen  
Talo Oy has building construction and property development businesses through   
its local subsidiaries in Finland, Russia, Estonia and Sweden. It also serves   
customers globally as a specialist project contractor. Combining the expertise  
of Lemcon and Palmberg strengthens Lemminkäinen's opportunities for growth      
especially on the Russian housing construction and commercial construction      
markets. Building construction accounted for 48% (46.7) of Lemminkäinen Group's 
net sales in 2007. The Managing Director of Lemminkäinen Talo Oy is Juha Nurmi. 

Lemminkäinen Infra Oy was formed from Lemminkäinen Corporation's Paving and     
Mineral Aggregates Division and Lemcon Ltd's infrastructure business (Lemcon    
Infra). In addition to asphalt, mineral aggregate and concrete production, the  
company engages in the construction and maintenance of road, street and rail    
networks as well as rock and foundation engineering. Lemminkäinen Infra Oy is   
Finland's biggest infrastructure contractor and a major actor in the            
infrastructure sector throughout the entire Baltic Sea region. Infrastructure   
construction accounted for 37.7% (39) of Lemminkäinen Group's net sales in 2007.
The Managing Director of Lemminkäinen Infra Oy is Timo Kohtamäki.               

Tekmanni Oy is a supplier of technical building and facility services as well as
industrial services. The Technical Building Services business sector's share of 
the Group's net sales in 2007 was10.6% (10.6). The company's Managing Director  
is Antero Huhta.                                                                

Lemminkäinen's Building Products business sector comprises Lemminkäinen Katto   
Oy, Lemminkäinen Betonituote Oy and the sports building contractor Omni-Sica Oy.
The business sector's share of the Group's net sales in 2007 was 6.2% (5.8).The 
Director of the Building Products business sector is Erkki Lönnrot.             

Following the Lemminkäinen Group's established new structure, units whose       
business operations are related will now also organisationally function under   
the same management, which enables the Group to use Group-internal synergies to 
its advantage. This furthermore helps maintain the flexibility of local         
operational models and regional business operations as the Group's central      
values.                                                                         

Table: Business development in 2007 (2006 comparison figures) according to the  
reorganised business sectors in proforma figures excluding the infringement fine
imposed by the Market Court.                                                    

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR, million                                                                 |
--------------------------------------------------------------------------------
| 2007 (2006)                                                                  |
--------------------------------------------------------------------------------
|            |   Building    | Infrastructur |   Technical    |    Building    |
|            | Construction  |       e       |    Building    |    Products    |
|            |               | Construction  |    Services    |                |
--------------------------------------------------------------------------------
| Net sales  | 1,042 | (839. | 820. | (701.2 | 230.2 | (191.7 | 133.8 | (104.4 |
|            |    .9 |    3) |    3 |      ) |       |      ) |       |      ) |
--------------------------------------------------------------------------------
| Share of   |  48.0 | (46.7 | 37.7 | (39.0) |  10.6 | (10.6) |   6.2 |  (5.8) |
| Group net  |       |     ) |      |        |       |        |       |        |
| sales, %   |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
| Internatio | 196.1 | (203. | 366. | (310.3 |   9.7 |  (9.6) |  10.7 |  (7.7) |
| nal        |       |    3) |    7 |      ) |       |        |       |        |
| operations |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
| Share of   |  18.8 | (24.2 | 44.7 | (44.3) |   4.2 |  (5.0) |   8.0 |  (7.4) |
| business   |       |     ) |      |        |       |        |       |        |
| sector net |       |       |      |        |       |        |       |        |
| sales, %   |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
|            |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
| Operating  |  71.5 | (58.5 | 52.6 | (41.9) |  11.9 |  (6.9) |  11.1 |  (5.0) |
| profit     |       |     ) |      |        |       |        |       |        |
--------------------------------------------------------------------------------
|            |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
| Net        |   7.8 | (4.5) | 32.1 | (33.7) |   1.6 |  (5.3) |   9.3 |  (2.0) |
| investment |       |       |      |        |       |        |       |        |
| s          |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
|            |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
| Order book | 938.0 | (893. | 326. | (334.9 | 111.9 | (74.9) |  37.7 | (23.4) |
|            |       |    5) |    5 |      ) |       |        |       |        |
--------------------------------------------------------------------------------
| -of which  | 106.9 | (97.8 | 170. | (231.6 |   6.4 |  (2.0) |   0.4 |  (0.3) |
| internatio |       |     ) |    2 |      ) |       |        |       |        |
| nal        |       |       |      |        |       |        |       |        |
| operations |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
| Share of   |  11.4 | (10.9 | 52.1 | (69.2) |   5.7 |  (2.7) |   1.1 |  (1.3) |
| business   |       |     ) |      |        |       |        |       |        |
| sector     |       |       |      |        |       |        |       |        |
| order      |       |       |      |        |       |        |       |        |
| book, %    |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
|            |       |       |      |        |       |        |       |        |
--------------------------------------------------------------------------------
| Personnel  | 3,055 | (2,81 | 3,36 | (3,072 | 1,918 | (1,812 |   749 |  (609) |
|            |       |    9) |    5 |      ) |       |      ) |       |        |
--------------------------------------------------------------------------------
| -of whom   |   672 | (593) |    1 | (1,596 |    52 |   (46) |       |        |
| abroad     |       |       |  841 |      ) |       |        |       |        |
--------------------------------------------------------------------------------


OUTLOOK FOR 2008                                                                

The new construction projects of 2007 that Lemminkäinen launched in building    
construction in Finland will maintain the Company's construction volume at a    
good level in 2008. The outlook for the Company in Russia is promising. The     
ongoing, long-term civil engineering projects guarantee Lemminkäinen a          
reasonable work stock for the next few years in the infrastructure construction 
sector. The demand for the Company's products and services in both Technical    
Building Services as well as Building Products will remain on a good level.     

The Group's order book is good as a whole, and there are prerequisites for the  
favourable development of the Company's business in 2007.                       


BOARD OF DIRECTORS' PROPOSAL FOR THE DISTRIBUTION OF PROFITS                    

The distributable shareholders' equity shown on the consolidated balance sheet  
31 December 2007 amounts to EUR 238,399,846.06. The distributable shareholders' 
equity shown on the balance sheet of the parent company, Lemminkäinen           
Corporation, on 31 December 2007 amounts to EUR 31,378,058.07, consisting of EUR
45,052,647.82 in retained earnings from previous years and EUR 13,674,589.75 in 
losses for the accounting period.                                               

The Board of Directors of Lemminkäinen Corporation proposes to the Annual       
General Meeting that the Company pay a dividend of EUR 1.80  (1.50) per share   
for the 2007 accounting period, i.e. a total of EUR 30,638,250.00               
(25,531,875.00)                                                                 


Helsinki, 13 February 2008                                                      
LEMMINKÄINEN CORPORATION                                                        
Board of Directors                                                              


TABULATED SECTION OF THE FINANCIAL STATEMENT BULLETIN                           

ACCOUNTING PRINCIPLES                                                           

This financial statement bulletin has been prepared in accordance with the IAS  
34-standard. In the preparation of this financial statement bulletin, the same  
IFRS measurement and preparation principles as in the financial statement of    
2006 have been applied, with the changes that are stated here below.            

During the accounting period, the Group has applied hedge accounting for        
interest rate swap agreements that were used to hedge separately specified      
floating-interest rate loans as well as for financing instruments that were used
to hedge foreign net investments. The change in fair value of the effective     
portion of the interest rate swap agreements are recognised directly in the     
revaluation reserve under the shareholders' equity, and the ineffective portion 
under financial income and expenses of the income statement.                    

New and revised standards and interpretations that the Group has applied in 2007
- IFRS 7, Financial instruments: Amendment to the Disclosures-standard and IAS
1 Capital disclosures-standard. The introduction of this standard and amendment 
increases the notes to the accounts related to financial instruments. The       
standard requires the disclosure of qualitative and quantitative information on 
exposure to risk due to financial instruments, and includes the requirement for 
minimum notes on accounts regarding credit, liquidity and market risks including
a market risk sensitivity analysis. The amendment to the IAS 1-standard requires
disclosure of information on the company's equity level and its management.     
Notes on accounts have been added to the Group's Financial Statement.           
- IFRC 8, IFRS 2, scope of application. The interpretation requires that 
transactions, in which equity instruments are issued and the received           
individualized counterpart is less than the fair value of the issued equity     
instruments, be assessed in order to ascertain whether they fall under the scope
of application of the IFRS 2. This interpretation does not have an impact on the
Group's financial statements.                                                   
- IFRIC 10, Interim Financial Reporting and Impairment. The Interpretation 
concludes that where an entity has recognised an impairment loss in an interim  
period in respect of goodwill or an investment in either an equity instrument or
a financial asset carried at cost, that impairment should not be reversed in    
subsequent interim financial statements or in annual financial statements. This 
interpretation does not have an impact on the Group's financial statements.     

New and revised standards and interpretations that became effective in 2007 but 
do not have an integral impact on the Group's financial statements.             
- IFRIC 7, Applying the restatement approach under IAS 29, Financial reporting
in hyperinflationary economies 
- IFRIC 9, Reassessment of embedded derivatives 

The Auditors have not yet submitted their report on the Financial Statements    
Bulletin.                                                                       


FINANCIAL STATEMENTS AND OTHER TABULATED INFORMATION                            

1) Consolidated income statement                                                
2) Consolidated balance sheet                                                   
3) Statement of source and application of funds 
4) Statement of changes in equity                                               
5) Consolidated income statement, quarterly 
6) Net sales by business sector                                                 
7) Net sales by business sector, quarterly 
8) Operating profit by business sector                                          
9) Operating profit by business sector, quarterly 
10) Economic trends and financial indicators 
11) Share-specific indicators                                                   
12) Guarantees and contingent liabilities 

--------------------------------------------------------------------------------
| 1) CONSOLIDATED INCOME STATEMENT                                    |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill.                    | 12/2007 | 12/200 |  Change | Change, |        |
|                              |         |      6 |         |         |        |
--------------------------------------------------------------------------------
|                     |        |         |        |         |       % |        |
--------------------------------------------------------------------------------
| Net sales                    | 2,174.1 | 1,795. |   378.2 |    21.1 |        |
|                              |         |      9 |         |         |        |
--------------------------------------------------------------------------------
| Other operating income       |    13.2 |   17.1 |    -3.9 |   -22.8 |        |
--------------------------------------------------------------------------------
| Operating expenses           | 2,026.8 | 1,670. |   356.8 |     214 |        |
|                              |         |      0 |         |         |        |
--------------------------------------------------------------------------------
| Depreciation                 |    34.2 |   35.0 |    -0.8 |    -2.3 |        |
--------------------------------------------------------------------------------
| Operating profit             |   126.3 |  108.1 |    18.2 |    16.8 |        |
--------------------------------------------------------------------------------
| Financial expenses           |    22.2 |   18.2 |     4.0 |    22.0 |        |
--------------------------------------------------------------------------------
| Financial income             |     6.2 |    3.3 |     2.9 |    87.9 |        |
--------------------------------------------------------------------------------
| Share of the results of      |         |        |         |         |        |
--------------------------------------------------------------------------------
| affiliated companies         |     0.9 |    1.1 |    -0.2 |   -18.2 |        |
--------------------------------------------------------------------------------
| Result before taxes          |   111.2 |   94.2 |    17.0 |    18.0 |        |
--------------------------------------------------------------------------------
| Income taxes                 |   -30.6 |  -21.3 |    -9.3 |    43.7 |        |
--------------------------------------------------------------------------------
| Result for the               |         |        |         |         |        |
--------------------------------------------------------------------------------
| accounting period            |    80.6 |   72.9 |     7.7 |    10.6 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the result for the accounting period                |        |
--------------------------------------------------------------------------------
| To shareholders of           |         |        |         |         |        |
--------------------------------------------------------------------------------
| the parent company           |    72.9 |   65.8 |     7.1 |    10.8 |        |
--------------------------------------------------------------------------------
| To minority interests        |     7.6 |    7.1 |     0.5 |     7.0 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from result attributable to parent company shareholders       |
--------------------------------------------------------------------------------
| Earnings per share, diluted  |         |        |         |         |        |
| and                          |         |        |         |         |        |
--------------------------------------------------------------------------------
| undiluted, EUR               |    4.29 |   3.87 |         |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2) CONSOLIDATED BALANCE SHEET                                       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill.   |       |        |         |   2007 |    2006 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets                     |        |         |         |        |
--------------------------------------------------------------------------------
| Tangible assets                        |  176.1 |   169.4 |         |        |
--------------------------------------------------------------------------------
| Goodwill                               |   75.1 |    68.2 |         |        |
--------------------------------------------------------------------------------
| Other intangible assets                |    2.6 |     2.5 |         |        |
--------------------------------------------------------------------------------
| Investments                            |    9.7 |     9.4 |         |        |
--------------------------------------------------------------------------------
| Deferred tax asset                     |    4.9 |     4.3 |         |        |
--------------------------------------------------------------------------------
| Other non-current receivables          |    3.7 |     2.2 |         |        |
--------------------------------------------------------------------------------
| Total                                  |  272.1 |   255.9 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                         |        |         |         |        |
--------------------------------------------------------------------------------
| Inventories                            |  330.9 |   281.9 |         |        |
--------------------------------------------------------------------------------
| Trade and other receivables            |  387.4 |   340.7 |         |        |
--------------------------------------------------------------------------------
| Cash funds                             |   78.5 |    60.6 |         |        |
--------------------------------------------------------------------------------
| Total                                  |  796.9 |   683.2 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets, total                          | 1,069. |   939.2 |         |        |
|                                        |      0 |         |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities   |        |         |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity attributable to shareholders of the parent company                    |
--------------------------------------------------------------------------------
| Share capital                          |   34.0 |    34.0 |         |        |
--------------------------------------------------------------------------------
| Share premium account                  |    5.8 |     5.8 |         |        |
--------------------------------------------------------------------------------
| Revaluation reserve                    |    0.2 |     0.1 |         |        |
--------------------------------------------------------------------------------
| Translation differences                |    0.1 |     0.1 |         |        |
--------------------------------------------------------------------------------
| Retained earnings                      |  182.5 |   142.2 |         |        |
--------------------------------------------------------------------------------
| Result for the period                  |   72.9 |    65.8 |         |        |
--------------------------------------------------------------------------------
| Shareholders' equity                   |        |         |         |        |
--------------------------------------------------------------------------------
| before minority interest               |  295.5 |   248.0 |         |        |
--------------------------------------------------------------------------------
| Minority interest                      |   23.7 |    19.7 |         |        |
--------------------------------------------------------------------------------
| Shareholders' equity, total            |  319.2 |   267.7 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                |        |         |         |        |
--------------------------------------------------------------------------------
| Deferred tax liabilities               |   12.9 |    14.6 |         |        |
--------------------------------------------------------------------------------
| Pension liabilities                    |    0.6 |     1.1 |         |        |
--------------------------------------------------------------------------------
| Provisions                             |    1.7 |     1.7 |         |        |
--------------------------------------------------------------------------------
| Interest-bearing liabilities           |  139.5 |    91.2 |         |        |
--------------------------------------------------------------------------------
| Other liabilities                      |    1.9 |     1.7 |         |        |
--------------------------------------------------------------------------------
| Total                                  |  156.6 |   110.3 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities                    |        |         |         |        |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities |  369.2 |   303.0 |         |        |
--------------------------------------------------------------------------------
| Provisions                             |    6.4 |     5.7 |         |        |
--------------------------------------------------------------------------------
| Interest-bearing liabilities           |  217.6 |   252.5 |         |        |
--------------------------------------------------------------------------------
| Total                                  |  593.2 |   561.1 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and               |        |         |         |        |
--------------------------------------------------------------------------------
| liabilities, total                     | 1,069. |   939.2 |         |        |
|                                        |      0 |         |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3) STATEMENT OF SOURCE AND APPLICATION OF FUNDS                     |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill.   |       |        |         |   2007 |    2006 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before extraordinary items      |  111.2 |    94.2 |         |        |
--------------------------------------------------------------------------------
| Depreciation according to plan         |   34.2 |    35.0 |         |        |
--------------------------------------------------------------------------------
| Other adjustments                      |    7.7 |     4.1 |         |        |
--------------------------------------------------------------------------------
| Cash flow before change                |        |         |         |        |
--------------------------------------------------------------------------------
| in working capital                     |  153.1 |   133.3 |         |        |
--------------------------------------------------------------------------------
| Change in working capital              |  -32.9 |  -109.3 |         |        |
--------------------------------------------------------------------------------
| Financial items                        |  -17.9 |   -11.9 |         |        |
--------------------------------------------------------------------------------
| Direct taxes paid                      |  -22.6 |   -19.2 |         |        |
--------------------------------------------------------------------------------
| Cash flow from operating activities    |   79.6 |    -7.2 |         |        |
--------------------------------------------------------------------------------
| Cash flow provided by investing        |        |         |         |        |
--------------------------------------------------------------------------------
| activities                             |   24.3 |    24.4 |         |        |
--------------------------------------------------------------------------------
| Cash flow used in investing activities |  -53.8 |   -38.9 |         |        |
--------------------------------------------------------------------------------
| Change in non-current receivables      |   -1.4 |    -1.4 |         |        |
--------------------------------------------------------------------------------
| Drawings of loans                      |  329.3 |   273.6 |         |        |
--------------------------------------------------------------------------------
| Repayments of loans                    | -332.5 |  -213.4 |         |        |
--------------------------------------------------------------------------------
| Dividends paid                         |  -27.4 |   -18.5 |         |        |
--------------------------------------------------------------------------------
| Cash flow from financing activities    |  -32.0 |    40.4 |         |        |
--------------------------------------------------------------------------------
| Change in cash funds                   |   18.1 |    18.8 |         |        |
--------------------------------------------------------------------------------
| Cash funds at beginning of period      |   60.6 |    42.4 |         |        |
--------------------------------------------------------------------------------
| Translation difference of cash funds   |   -0.2 |    -0.6 |         |        |
--------------------------------------------------------------------------------
| Cash funds at end of period            |   78.5 |    60.6 |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4) STATEMENT OF CHANGES IN EQUITY                                   |        |
--------------------------------------------------------------------------------
|             |       |        |         |        |         |         | Share- |
--------------------------------------------------------------------------------
|             |       |  Share |  Trans- | Revalu |         |         holders' |
|             |       |        |         |      - |         |                  |
--------------------------------------------------------------------------------
| EUR mill.   | Share | premiu |  lation |  ation | Retaine | Minorit | equity |
|             |       |      m |         |        |       d |       y |        |
--------------------------------------------------------------------------------
|             capital | accoun | differe | reserv | earning | interes |  total |
|                     |      t |     nce |      e |       s |       t |        |
--------------------------------------------------------------------------------
| Shareholders'       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| equity,             |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| 1.1.2006    |  34.0 |    5.8 |     0.4 |    1.5 |   159.2 |    14.6 |  215.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation         |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| difference          |        |    -0.5 |        |         |         |   -0.5 |
--------------------------------------------------------------------------------
| Hedging of net      |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| investment in       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| foreign             |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| subsidiary          |        |     0.3 |        |         |         |    0.3 |
--------------------------------------------------------------------------------
| Change in           |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| fair value          |        |         |    0.1 |         |         |    0.1 |
--------------------------------------------------------------------------------
| Effect of           |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| sold shares         |        |         |   -1.5 |         |         |   -1.5 |
--------------------------------------------------------------------------------
| Reversal of         |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| dividend            |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| liability           |        |         |        |     0.0 |         |    0.0 |
--------------------------------------------------------------------------------
| Dividend            |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| distribution        |        |         |        |   -17.0 |         |  -17.0 |
--------------------------------------------------------------------------------
| Result for the      |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| accounting          |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| period              |        |         |        |    65.8 |     7.1 |   72.9 |
--------------------------------------------------------------------------------
| Change in           |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| minority            |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| interest            |        |         |        |         |    -2.0 |   -2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders'       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| equity,     |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| 31.12.2006  |  34.0 |    5.8 |     0.1 |    0.1 |   208.0 |    19.7 |  267.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|             |       |        |         |        |         |         | Share- |
--------------------------------------------------------------------------------
|             |       |  Share |  Trans- | Revalu |         |         holders' |
|             |       |        |         |      - |         |                  |
--------------------------------------------------------------------------------
| EUR mill.   | Share | premiu |  lation |  ation | Retaine | Minorit | equity |
|             |       |      m |         |        |       d |       y |        |
--------------------------------------------------------------------------------
|             capital | accoun | differe | reserv | earning | interes |  total |
|                     |      t |     nce |      e |       s |       t |        |
--------------------------------------------------------------------------------
| Shareholders'       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| equity,             |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| 1.1.2007    |  34.0 |    5.8 |     0.1 |    0.1 |   208.0 |    19.7 |  267.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation         |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| difference          |        |     0.4 |        |         |         |    0.4 |
--------------------------------------------------------------------------------
| Hedging of net      |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| investment in       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| foreign             |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| subsidiary          |        |    -0.4 |        |         |         |   -0.4 |
--------------------------------------------------------------------------------
| Cash flow           |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| hedges      |       |        |         |    0.2 |         |         |    0.2 |
--------------------------------------------------------------------------------
| Change in           |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| fair value          |        |         |    0.0 |         |         |    0.0 |
--------------------------------------------------------------------------------
| Effect of           |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| sold shares         |        |         |   -0.1 |         |         |   -0.1 |
--------------------------------------------------------------------------------
| Reversal of         |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| dividend            |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| liability           |        |         |        |     0.0 |         |    0.0 |
--------------------------------------------------------------------------------
| Dividend            |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| distribution        |        |         |        |   -25.5 |         |  -25.5 |
--------------------------------------------------------------------------------
| Result for the      |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| accounting          |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| period              |        |         |        |    72.9 |     7.6 |   80.6 |
--------------------------------------------------------------------------------
| Change in           |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| minority            |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| interest            |        |         |        |         |    -3.6 |   -3.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders'       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| equity,             |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| 31.12.2007  |  34.0 |    5.8 |     0.1 |    0.2 |   255.4 |    23.7 |  319.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5) CONSOLIDATED INCOME STATEMENT, QUARTERLY                         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|             |  4-6/ |   7-9/ |  10-12/ |   1-3/ |    4-6/ |    7-9/ | 10-12/ |
--------------------------------------------------------------------------------
| EUR mill.   |  2006 |   2006 |    2006 |   2007 |    2007 |    2007 |   2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales   | 427.8 |  573.9 |   490.8 |  328.0 |   551.9 |   655.7 |  638.5 |
--------------------------------------------------------------------------------
| Other       |       |        |         |        |         |         |        |
| opera-      |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| ting income |   2.1 |    2.5 |     8.5 |    7.9 |     2.6 |     1.0 |    1.7 |
--------------------------------------------------------------------------------
| Operating   |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| expenses    | 394.9 |  507.9 |   458.0 |  330.8 |   500.5 |   586.8 |  608.7 |
--------------------------------------------------------------------------------
| Depreciatio |   9.2 |   12.8 |     8.0 |    4.9 |     9.0 |    12.3 |    8.1 |
| n           |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Operating   |  25.8 |   55.7 |    33.4 |    0.3 |    45.0 |    57.6 |   23.4 |
| profit      |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Financial   |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| expenses    |   5.2 |    4.6 |     5.7 |    4.1 |     5.1 |     6.3 |    6.7 |
--------------------------------------------------------------------------------
| Financial   |   0.0 |    0.4 |     2.1 |    1.0 |     1.9 |     0.6 |    2.7 |
| income      |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Share of the        |        |         |        |         |         |        |
| results             |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| of affiliated       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| companies   |   0.2 |    0.8 |     0.5 |   -0.1 |     0.1 |     0.7 |    0.3 |
--------------------------------------------------------------------------------
| Result      |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| before      |  20.7 |   52.3 |    30.3 |   -3.0 |    41.9 |    52.6 |   19.6 |
| taxes       |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Income      |  -4.8 |  -12.1 |    -6.1 |    1.1 |   -10.2 |   -12.3 |   -9.2 |
| taxes       |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Result for          |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| the accounting      |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| period      |  15.9 |   40.1 |    24.2 |   -1.8 |    31.7 |    40.3 |   10.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the result for the accounting period                         |
--------------------------------------------------------------------------------
| To shareholders     |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| of the parent       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| company     |  13.6 |   38.4 |    22.1 |   -3.7 |    30.2 |    38.7 |    7.8 |
--------------------------------------------------------------------------------
| To minority |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| interests   |   2.4 |    1.7 |     2.1 |    1.9 |     1.5 |     1.6 |    2.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from result attributable to parent company shareholders       |
--------------------------------------------------------------------------------
| Earnings per share, diluted and undiluted                                    |
--------------------------------------------------------------------------------
| EUR         |  0.80 |   2.26 |    1.30 |  -0.22 |    1.77 |    2.27 |   0.46 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6) NET SALES BY BUSINESS SECTOR                                     |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill.   |       |        |    2007 |   2006 |  Change | Change, |        |
--------------------------------------------------------------------------------
|             |       |        |         |        |         |       % |        |
--------------------------------------------------------------------------------
| Paving and Mineral           |         |        |         |         |        |
--------------------------------------------------------------------------------
| Aggregates Division          |   636.3 |  559.0 |    77.3 |    13.8 |        |
--------------------------------------------------------------------------------
| Building Materials Division  |   133.8 |  104.4 |    29.4 |    28.2 |        |
--------------------------------------------------------------------------------
| Lemcon Ltd                   |   389.9 |  344.0 |    45.9 |    13.3 |        |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab     |   837.0 |  637.5 |   199.5 |    31.3 |        |
--------------------------------------------------------------------------------
| Tekmanni Oy                  |   230.2 |  191.7 |    38.5 |    20.1 |        |
--------------------------------------------------------------------------------
| Others                       |   -53.0 |  -40.7 |   -12.3 |    30.2 |        |
--------------------------------------------------------------------------------
| Group total                  | 2,174.1 | 1,795. |   378.2 |    21.1 |        |
|                              |         |      9 |         |         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7) NET SALES BY BUSINESS SECTOR, QUARTERLY                          |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|             |  4-6/ |   4-6/ |    7-9/ | 10-12/ |    1-3/ |    4-6/ |   7-9/ |
--------------------------------------------------------------------------------
| EUR mill.   | 2 006 |   2006 |    2006 |   2006 |    2007 |    2007 |   2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral  |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Aggregates  |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Division    | 147.8 |  249.6 |   137.7 |   41.9 |   174.0 |   253.8 |  166.6 |
--------------------------------------------------------------------------------
| Building Materials  |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Division    |  29.8 |   37.2 |    25.8 |   18.5 |    39.5 |    41.2 |   34.5 |
--------------------------------------------------------------------------------
| Lemcon Ltd  |  71.8 |   98.8 |    72.5 |   76.2 |    88.5 |   108.6 |  116.7 |
--------------------------------------------------------------------------------
| Oy Alfred   |       |        |         |        |         |         |        |
| A.          |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Palmberg Ab | 141.7 |  155.2 |   211.0 |  155.3 |   207.9 |   207.3 |  266.5 |
--------------------------------------------------------------------------------
| Tekmanni Oy |  44.8 |   47.6 |    56.3 |   46.2 |    57.2 |    58.5 |   68.3 |
--------------------------------------------------------------------------------
| Others      |  -8.2 |  -14.5 |   -12.4 |  -10.1 |   -15.2 |   -13.6 |  -14.1 |
--------------------------------------------------------------------------------
| Group total | 427.8 |  573.9 |   490.8 |  328.0 |   551.9 |   655.7 |  638.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8) OPERATING PROFIT/LOSS BY BUSINESS SECTOR                         |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill.   |       |        |    2007 |   2006 |  Change | Change, |        |
--------------------------------------------------------------------------------
| Paving and Mineral           |         |        |         |       % |        |
--------------------------------------------------------------------------------
| Aggregates Division          |         |        |         |         |        |
--------------------------------------------------------------------------------
| excluding the infringement   |    40.9 |   35.5 |     5.4 |    15.2 |        |
| fine                         |         |        |         |         |        |
--------------------------------------------------------------------------------
| Infringement fine   |        |   -14.0 |        |         |         |        |
--------------------------------------------------------------------------------
| Paving and Mineral           |         |        |         |         |        |
--------------------------------------------------------------------------------
| Aggregates Division          |    26.9 |   35.5 |    -8.6 |   -24.2 |        |
--------------------------------------------------------------------------------
| Building Materials Division  |    11.1 |    5.0 |     6.1 |    over |        |
|                              |         |        |         |     100 |        |
--------------------------------------------------------------------------------
| Lemcon Ltd                   |    13.0 |   12.5 |     0.5 |     4.0 |        |
--------------------------------------------------------------------------------
| Oy Alfred A. Palmberg Ab     |    70.2 |   52.4 |    17.8 |    34.0 |        |
--------------------------------------------------------------------------------
| Tekmanni Oy                  |    11.9 |    6.9 |     5.0 |    72.5 |        |
--------------------------------------------------------------------------------
| Others                       |    -6.7 |   -4.3 |    -2.4 |    55.8 |        |
--------------------------------------------------------------------------------
| Group total                  |   126.3 |  108.1 |    18.2 |    16.8 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9) OPERATING PROFIT/LOSS BY BUSINESS SECTOR, QUARTERLY              |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|             |  4-6/ |   7-9/ |  10-12/ |   1-3/ |    4-6/ |    7-9/ | 10-12/ |
--------------------------------------------------------------------------------
| EUR mill.   |  2006 |   2006 |    2006 |   2007 |    2007 |    2007 |   2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Paving and Mineral           |         |        |         |         |        |
--------------------------------------------------------------------------------
| Aggregates Division |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| excluding the infringement   |         |        |         |         |    6.5 |
| fine                         |         |        |         |         |        |
--------------------------------------------------------------------------------
| Infringement fine   |        |         |        |         |         |  -14.0 |
--------------------------------------------------------------------------------
| Paving and Mineral  |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Aggregates  |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Division    |   7.6 |   33.7 |    13.3 |  -16.4 |    17.8 |    32.9 |   -7.5 |
--------------------------------------------------------------------------------
| Building Materials  |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Division    |   1.9 |    4.6 |     0.3 |   -1.3 |     4.7 |     5.6 |    2.0 |
--------------------------------------------------------------------------------
| Lemcon Ltd  |   3.1 |    4.3 |     1.0 |    4.5 |     1.9 |     1.7 |    4.8 |
--------------------------------------------------------------------------------
| Oy Alfred   |       |        |         |        |         |         |        |
| A.          |       |        |         |        |         |         |        |
--------------------------------------------------------------------------------
| Palmberg Ab |  14.3 |   10.8 |    19.8 |   13.9 |    18.0 |    15.7 |   22.7 |
--------------------------------------------------------------------------------
| Tekmanni Oy |   0.1 |    3.4 |     1.1 |    1.3 |     3.3 |     3.5 |    3.8 |
--------------------------------------------------------------------------------
| Others      |  -1.3 |   -1.2 |    -2.2 |   -1.8 |    -0.8 |    -1.7 |   -2.4 |
--------------------------------------------------------------------------------
| Group total |  25.8 |   55.7 |    33.4 |    0.3 |    45.0 |    57.6 |   23.4 |
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| 10) ECONOMIC TRENDS AND FINANCIAL INDICATORS                                 |
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|                                        |   2007 |    2006 |         |        |
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| Return on equity, %                    |   27.5 |    30.2 |         |        |
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| Return on investment, %                |   20.7 |    20.6 |         |        |
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| Operating profit, % of net sales       |    5.8 |     6.0 |         |        |
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| Equity ratio, %                        |   32.7 |    31.2 |         |        |
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| Gearing, %                             |   87.2 |   105.7 |         |        |
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| Interest-bearing net debt, EUR million |  278.5 |   283.0 |         |        |
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| Gross investments, EUR million         |        |         |         |        |
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| (incl. leasing purchases)              |   61.4 |    48.7 |         |        |
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| Order book, EUR mill.                  | 1,414. | 1,326.7 |         |        |
|                                        |      1 |         |         |        |
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| - of which foreign orders, EUR mill.   |  284.0 |   331.8 |         |        |
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| Average number of employees            |  9,201 |   8,418 |         |        |
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| Employees at end of period             |  8,718 |   8,087 |         |        |
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| Net sales, EUR mill.                   | 2,174. | 1,795.9 |         |        |
|                                        |      1 |         |         |        |
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| - of which operations abroad,          |        |         |         |        |
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| EUR mill.                              |  581.6 |   530.3 |         |        |
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| % of net sales                         |   26.8 |    29.5 |         |        |
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| 11) SHARE-SPECIFIC INDICATORS          |   2007 |    2006 |         |        |
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| Earnings per share, EUR                |   4.29 |    3.87 |         |        |
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| Equity per share, EUR                  |  17.36 |   14.57 |         |        |
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| Dividend per share, EUR                | 1.801) |    1.50 |         |        |
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| Dividend to earnings ratio, %          |   42.0 |    38.8 |         |        |
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| Market capitalisation, EUR mill.       |  536.2 |   614.5 |         |        |
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| Share price at end of period, EUR      |   31.5 |    36.1 |         |        |
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| Trading volume during period,          |        |         |         |        |
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| 1,000 shares                           |  5,204 |   4,114 |         |        |
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| Number of issued shares, 1,000 shares  | 17,021 |  17,021 |         |        |
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| 1) Board of Directors' proposal to the |        |         |         |        |
| AGM                                    |        |         |         |        |
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| 12) GUARANTEES AND CONTINGENT LIABILITIES                           |        |
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| EUR mill.   |       |        |         |   2007 |    2006 |         |        |
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| Securities for own commitments                  |         |         |        |
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| Property mortgages                     |    3.1 |     2.4 |         |        |
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| Business mortgages                     |   95.3 |   100.1 |         |        |
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| Bonds pledged as security              |    0.8 |     0.8 |         |        |
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| Total                                  |   99.2 |   103.3 |         |        |
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| Guarantees                             |        |         |         |        |
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| On behalf of affiliated companies      |        |     0,8 |         |        |
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| On behalf of others                    |    9.9 |     5.3 |         |        |
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| Minimum lease payments of irrevocable  |        |         |         |        |
| lease agreements                       |        |         |         |        |
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| One year or less                       |    5.7 |     6.0 |         |        |
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| Over one year but no                   |        |         |         |        |
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| more than five years                   |   20.8 |    17.9 |         |        |
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| Over five years                        |   20.2 |    20.8 |         |        |
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| Total                                  |   46.7 |    44.7 |         |        |
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| Purchase commitments of investments    |   11.3 |     2.9 |         |        |
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| The proceedings at the court of arbitration in Stockholm  |         |        |
| concerning                                                |         |        |
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| Lemcon's contract for the construction of the MEGA        |         |        |
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| shopping centre in St. Petersburg, which IKEA terminated, |         |        |
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| continue.   |       |        |         |        |         |         |        |
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| The Market Court imposed an infringement fine of EUR 14   |         |        |
| million on Lemminkäinen                                   |         |        |
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| for circumvention of competition laws in road-paving      |         |        |
| operations in                                             |         |        |
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| Finland. The infringement fine has been recognised as an  |         |        |
| expense                                                   |         |        |
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| in the fourth quarter of the current year. Since the      |         |        |
| decision has                                              |         |        |
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| been appealed, the total amount of the fine may change.   |         |        |
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| Derivative contracts                   |        |         |         |        |
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| Forward foreign exchange contracts              |         |         |        |
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| Nominal value                          |   54.6 |    11.2 |         |        |
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| Fair value                             |   -0.2 |     0.1 |         |        |
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| Interest rate options, calls purchased          |         |         |        |
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| Nominal value                          |    3.5 |    34.5 |         |        |
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| Fair value                             |    0.0 |     0.0 |         |        |
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| Interest rate options, puts written             |         |         |        |
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| Nominal value                          |    3.5 |     5.0 |         |        |
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| Fair value                             |    0.0 |    -0.1 |         |        |
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| Interest rate swap contracts                    |         |         |        |
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| Nominal value                          |   95.6 |    30.2 |         |        |
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| Fair value                             |   -0.5 |    -2.0 |         |        |
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| The fair value of contracts is the gain or loss arising from closure         |
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| of the contract based on the market price on the accounting date.            |
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