Lemminkäinen's financial statement bulletin 2008: Net sales up, profit before taxes down on the previous year

LEMMINKÄINEN CORPORATION   FINANCIAL STATEMENTS BULLETIN  12.2.2009 at 9:00     


LEMMINKÄINEN'S FINANCIAL STATEMENT RELEASE 2008:                              
Net sales up, profit before taxes down on the previous year                     


JANUARY-DECEMBER 2008:                                                          

- Net sales rose 14 % to EUR 2,481.8 million (2,174.1). 
- International operations accounted for 27 % or EUR 676.7 million (581.6) of
net sales. 
- Operating profit was EUR 123.2 million (127.2). The operating margin
(operating profit / net sales) was 5.0 %(5.8). 
- The profit before taxes was down 18.0 % at EUR 91.0 million (111.2) 
- Earnings per share were EUR 3.28 (4.29) 
- The return on investment was 17.7% (20.7) and the return on equity 19.2%
(27.5) 
- The equity ratio was 26.2 % (32.7) and gearing 98.4 %(87.2) 
- The order book at the end of the accounting period was down 25 % at EUR
1,064.5 million (1,414.1). 
- The Board of Directors proposes that the Company pay a dividend of EUR 0.90 
(1.80) per share                                                                

OCTOBER-DECEMBER 2008:                                                          

- Net sales rose 16 % to EUR 742.5 million (638.5).                             
- Operating profit rose 59 % to EUR 37.5 million (23.6). 
- Net financing expenses were EUR 14.5 million (4.0)                            
- The profit before taxes was EUR 23.0 million (19.6) 

Highlights on Q4/2008:                                                          
Net sales and profit were boosted by real estate deals totalling EUR 200 million
at the turn of the year, most of which were recognised as income in the fourth  
quarter of 2008. When comparing the Q4 performance with the previous year, it   
should be noted that a EUR 14 million infringement fine was expensed in the     
fourth quarter of 2007. The Company's net financing expenses were increased by  
exchange rate losses and interest expenses stemming from the growth of          
interest-bearing net debt. The payment received from IKEA concerning the        
termination of the Mega shopping centre contract in St. Petersburg was          
recognised in the final quarter.                                                


Profitability and financial position in 2008:                                   
Business volume grew in all of Lemminkäinen's business sectors in 2008. The     
Company's net sales were boosted, especially in the first half of the year, by  
continued brisk activity in commercial and office construction in Finland, which
also sustained demand for technical building services at a good level throughout
the year. In Russia, housing sales were good in the first half, but fell away   
sharply in the final months of the years. Paving and mineral aggregate          
operations in Finland were brisk, but in the Baltic states the market situation 
for infrastructure remained weak. Lemminkäinen's order book at the end of the   
accounting period was 25 % down on the previous year.                           

Profitability in 2008 was impacted by the poor market situation in the Baltic   
states, the weak results of some projects, and reduced housing sales. The profit
before taxes was down 18 % on the previous year due to increased financing      
costs. Financing expenses were raised by the growth of interest-bearing net     
debt, higher interest rates and exchange rate losses.                           

The Company's cash funds at the end of the accounting period were EUR 250.1     
million (78.5). The financial position was strengthened by drawing on the full  
EUR 150 million credit limit. Good cash flows from operating activities in the  
final quarter of the year also strengthened the Company's cash reserves. The    
Company has unused TyEL pension premium loan allocations.                       


Managing Director Timo Kohtamäki commented:                                     
”Lemminkäinen continued to grow in 2008 despite the weakened market situation.  
Even though the Group's profit before taxes was unchanged from the previous     
year, the profitability trend in some business sectors even exceeded            
expectations.                                                                   

The threshold for new housing starts will be high in 2009. The statutory        
procedure for codetermination negotiations has been initiated locally and in    
individual business sectors. Rapid reaction to the changed level of demand is   
also facilitated by customary adjustment measures stemming from the seasonal    
nature of Lemminkäinen's operations. Investments are subject to special scrutiny
and due diligence. On the other hand, our plant and equipment is in excellent   
condition and our competitiveness is good.                                      

Operating in four different business sectors reduces Lemminkäinen's sensitivity 
to cyclical fluctuations in new building construction. Maintenance, servicing   
and refurbishment contracting account for a third of our whole business, and we 
are expecting further growth in the volume of these operations.”                


OUTLOOK FOR 2009                                                                

The volume of new building construction in Finland will contract in 2009.  No   
significant pick-up in the housing market is expected, and there will be a      
marked reduction in commercial and office construction activity, especially     
towards the end of the year. Refurbishment contracting will continue to grow    
steadily. In Russia the uncertain economic situation will probably keep the     
volume of construction at a low level.                                          

The Finnish government has decided on a stimulus package that will boost        
infrastructure appropriations for 2009. Major infrastructure projects now       
starting up will keep the market situation favourable for the next few years. In
other Nordic countries the situation will be similar to Finland, but the markets
of the Baltic states will remain weak.                                          

Forecasting economic development over the second half of the year is            
exceptionally challenging. Based on the existing order book and the uncertain   
market situation, Lemminkäinen expects its full-year net sales and profit before
taxes to fall well short of the 2008 level.                                     

BRIEFING                                                                        

Lemminkäinen will brief analysts and the media on its financial statements at   
10.00 a.m. on 12 February 2009 at Katajanokan Kasino, address: Laivastokatu 1,  
Helsinki. Those wishing to attend are cordially invited to register in advance  
by phoning +358 2071 54813 or by e-mailing katri.sundstrom@lemminkainen.fi.     
Presentation material on the financial statements will be available on the      
Company's website at www.lemminkainen.com after the briefing.                   

ANNUAL GENERAL MEETING, DIVIDEND AND FINANCIAL INFORMATION 2009                 

Lemminkäinen Corporation's Annual General Meeting will be held at 3.00 p.m. on  
17 March 2009 at Hotel Palace, 10th floor, Eteläranta 10, 00130 Helsinki,       
Finland. The Board of Directors of Lemminkäinen Corporation will propose to the 
Annual General Meeting that a dividend of EUR 0.90 (1.80) per share, i.e. a     
total of EUR 15,319,125.00 (30,638,250.00), be paid for the 2008 accounting     
period. The dividend will be paid to shareholders recorded on the Company's     
register of shareholders kept by Euroclear Finland Ltd on the record date, i.e. 
20 March 2009. The dividend payment date will be 27 March 2009.                 
The Annual Report 2008 will be published in Finnish and English during week     
10/2009. The interim financial reviews will be published on 7 May, 6 August and 
5 November 2009. Lemminkäinen Corporation's annual summary and stock exchange   
bulletins can be viewed in their entirety on the Company's website at           
www.lemminkainen.com.                                                           


LEMMINKÄINEN CORPORATION                                                        
Corporate Communications                                                        

Additional information:                                                         
Timo Kohtamäki, Managing Director, tel. +358 2071 53263 
Jukka Ovaska, Finance Director, tel. + 358 2071 53334                           
Katri Sundström, Investor Relations Officer, tel. +358 2071 54813 

APPENDICES                                                                      
Board of Directors' Report 1.1.-31.12.2008                                      
Tabulated Section of the Financial Statements Bulletin 

DISTRIBUTION                                                                    
NASDAQ OMX Helsinki                                                             
Key media                                                                       
www.lemminkainen.com                                                            



BOARD OF DIRECTORS' REPORT 1.1.-31.12.2008                                      

OPERATING ENVIRONMENT                                                           

Finland                                                                         

The year 2008 marked the onset of a downturn for both the global economy and the
construction sector. Uncertainty as to the development of construction demand   
grew as the year progressed. The effects of the international financial crisis  
became manifest in the real economy towards the end of the year, and the economy
drifted towards recession.                                                      

The volumes of commercial, logistics and industrial construction peaked and     
began to decline in the second half of the year. Office construction was brisk  
during the first half of the year, especially in the Helsinki Metropolitan Area,
and the interest shown by real estate investors in Finnish real estate          
properties was good. The investment returns required by investors rose towards  
the end of the year, and especially international real estate investors pulled  
out of the market. Demand for housing fell sharply and the number of unsold     
completed housing units rose. Barely 24,000 new housing starts were made in 2008
(2007: 31,000).                                                                 

In infrastructure construction, especially the paving and mineral aggregates    
market continued to enjoy good demand. However, the civil engineering market was
somewhat weaker than in the previous year.                                      

Brisk building construction in the first half of the year boosted demand for    
technical building services. The slowdown in new construction weakened demand   
for some building products, such as pre-cast concrete staircase units and wall  
elements.                                                                       

Relevant markets for Lemminkäinen abroad                                        

In Sweden and Norway the infrastructure construction market remained reasonably 
good, demand being boosted by stimulus measures aimed at infrastructure         
construction by the governments of both countries. In Sweden the rock           
engineering market continued to be brisk, while in Denmark demand for paving    
works weakened slightly.                                                        

In the Baltic states the construction market remained difficult. Some new road  
construction and upgrade projects were launched with EU funding in the region,  
but the total volume of construction was lower than in the previous year.       

In Russia the economic growth rate slowed down in the second half of the year   
due to the lower oil price and the global financial crisis. Demand for          
construction collapsed and housing sales fell sharply towards the end of the    
year.                                                                           


LEMMINKÄINEN'S NEW STRUCTURE EFFECTIVE 1.1.2008                                 

Lemminkäinen Group was reorganised into four business sector with effect from 1 
January 2008. The business sectors are building construction, infrastructure    
construction, technical building services, and building products.               

Lemminkäinen's operations in the building construction and infrastructure       
construction business sectors are the responsibility of two newly established   
companies:  Lemminkäinen Talo Oy and Lemminkäinen Infra Oy, respectively.       
Tekmanni Oy is a provider of technical building services, technical facility    
services and industrial services. The building products business sector,        
Lemminkäinen Building Products, comprises the subsidiaries Lemminkäinen Katto Oy
(roofing), Lemminkäinen Betonituote Oy (concrete products) and Omni-Sica Oy     
(sports construction).                                                          

NET SALES, PROFIT AND FINANCIAL POSITION IN 2008                                

October-December 2008:                                                          

The Group's net sales in the fourth quarter of 2008 were EUR 742.5 million      
(638.5) and the operating profit EUR 37.5 million (23.6). Net sales and profit  
were boosted by real estate deals totalling EUR 200 million at the turn of the  
year, most of which were recognised as income in the fourth quarter of 2008.    
When comparing the Q4 performance with the previous year, it should be noted    
that a EUR 14 million infringement fine was expensed in the fourth quarter of   
2007. The Q4 profit before taxes was EUR 23.0 million (19.6). Exchange rate     
losses and higher interest expenses increased net financing expenses to EUR 14.5
million (4.0).                                                                  

Year 2008:                                                                      

Lemminkäinen Group's net sales were EUR 2,481.1 million (2,174.1). 73 % of net  
sales was generated in Finland, 13 %  (14) in other Nordic countries, 4 % (2) in
Russia, 7% (7) in the Baltic states and Eastern Europe, and 3 % (4) in other    
countries. The operating profit for the accounting period was EUR 123.2 million 
(127.2), and the operating margin (operating profit / net sales)  was 5.0 %     
(5.8).                                                                          


--------------------------------------------------------------------------------
| Key figures,                     |          2008 |         2007 |       2006 |
| EUR million                      |               |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which              |       2,481.8 |      2,174.1 |    1,795.9 |
--------------------------------------------------------------------------------
| Operations abroad                |         676.7 |        581.6 |      530.3 |
--------------------------------------------------------------------------------
| Operating profit                 |         123.2 |        127.2 |      109.2 |
--------------------------------------------------------------------------------
| Operating margin, %              |           5.0 |          5.8 |        6.1 |
--------------------------------------------------------------------------------
| Profit before taxes              |          91.0 |        111.2 |       94.2 |
--------------------------------------------------------------------------------
| Profit for accounting period, of |          63.5 |         80.6 |       72.9 |
| which                            |               |              |            |
--------------------------------------------------------------------------------
| Profit share of parent company's |          55.9 |         72.9 |       65.8 |
| shareholders                     |               |              |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR          |          3.28 |         4.29 |       3.87 |
--------------------------------------------------------------------------------
| Dividend per share, EUR          |        0.90*) |         1.80 |       1.50 |
--------------------------------------------------------------------------------
| Return on investment, %          |          17.7 |         20.7 |       20.6 |
--------------------------------------------------------------------------------
| Return on equity, %              |          19.2 |         27.5 |       30.2 |
--------------------------------------------------------------------------------
| Equity ratio, %                  |          26.2 |         32.7 |       31.2 |
--------------------------------------------------------------------------------
| Gearing, %                       |          98.4 |         87.2 |      105.7 |
--------------------------------------------------------------------------------
| Liquid funds                     |         250.1 |         78.5 |       60.6 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities     |         586.5 |        357.0 |      343.6 |
--------------------------------------------------------------------------------
*) Board of Directors' proposal to the AGM.                                     

Business volume grew in all of Lemminkäinen's business sectors in 2008. The     
Company's net sales were boosted, especially in the first half of the year, by  
continued brisk activity in commercial and office construction in Finland, which
also sustained demand for technical building services at a good level throughout
the year. In Russia, housing sales were good in the first half, but fell away   
sharply in the final months of the years. Paving and mineral aggregate          
operations in Finland were brisk, but in the Baltic states the market situation 
for infrastructure remained weak. Lemminkäinen's order book at the end of the   
accounting period was 25 % down on the previous year.                           

Profitability in 2008 was impacted by the poor market situation in the Baltic   
states, the weak results of some projects, and reduced housing sales. The profit
before taxes was down 18 % on the previous year due to increased financing      
costs. Financing expenses were raised by the growth of interest-bearing debt,   
higher interest rates and exchange rate losses. The profit for the accounting   
period was 21 % down at EUR 63.5 million (80.6).                                

The Company's cash funds at the end of the accounting period were EUR 250.1     
million (78.5). The financial position was strengthened by drawing on the full  
EUR 150 million credit limit. Good cash flows from operating activities in the  
final quarter of the year also strengthened the Company's cash reserves. The    
Company has unused TyEL pension premium loan allocations.                       


--------------------------------------------------------------------------------
| Net sales by business sector,     |        2008 |         2007 |        2006 |
| EUR million                       |             |              |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building construction             |     1,205.7 |    1,042.9*) |     839.3*) |
--------------------------------------------------------------------------------
| Infrastructure construction       |       902.8 |      820.3*) |     701.2*) |
--------------------------------------------------------------------------------
| Technical building services       |       269.5 |        230.2 |       191.7 |
--------------------------------------------------------------------------------
| Building products                 |       156.0 |        133.8 |       104.4 |
--------------------------------------------------------------------------------
| Other functions and Group         |       -52.2 |        -53.0 |       -40.7 |
| illuminations                     |             |              |             |
--------------------------------------------------------------------------------
| Group, total                      |     2,481.8 |      2,174.1 |     1,795.9 |
--------------------------------------------------------------------------------
*)pro forma                                                                     


--------------------------------------------------------------------------------
| Operating profit by business      |        2008 |         2007 |        2006 |
| sector,                           |             |              |             |
| EUR million                       |             |              |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building construction             |        71.8 |       71.7*) |      58.4*) |
--------------------------------------------------------------------------------
| Infrastructure construction       |        30.7 |       39.3*) |      43.1*) |
--------------------------------------------------------------------------------
| Technical building services       |        17.0 |         11.9 |         6.9 |
--------------------------------------------------------------------------------
| Building products                 |        10.5 |         11.1 |         5.0 |
--------------------------------------------------------------------------------
| Others                            |        -6.8 |         -6.7 |        -4.3 |
--------------------------------------------------------------------------------
| Group, total                      |       123.2 |        127.2 |       109.2 |
--------------------------------------------------------------------------------
*)pro forma                                                                     


BUSINESS SECTORS                                                                

BUILDING CONSTRUCTION                                                           

The net sales of the building construction business sector rose 16 % to EUR     
1,205.7 million (1,042.9), of which 80 % was generated in Finland, 5 % in other 
Nordic countries, 6 % in Russia, and 9 % in other countries. Net sales were     
boosted by the sustained level of commercial and office construction activity in
Finland and building construction in Russia, especially during the first half of
the year.                                                                       

The operating profit of the building construction business sector remained at   
the level of the previous year and was EUR 71.8 million (71.7)1.                

The business sector's order book fell almost 40 % to EUR 576.3 million (938.0), 
of which international orders were worth EUR 89.4 million (106.9).              

--------------------------------------------------------------------------------
| Building construction            |        2008 |         2007*) |     2006*) |
| Key figures, EUR million         |             |                |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which              |     1,205.7 |        1,042.9 |      839.3 |
--------------------------------------------------------------------------------
| Operations abroad                |       243.9 |          196.1 |      203.3 |
--------------------------------------------------------------------------------
| Operating profit                 |        71.8 |           71.7 |       58.4 |
--------------------------------------------------------------------------------
| Operating margin, %              |         6.0 |            6.9 |        7.0 |
--------------------------------------------------------------------------------
| Order book at end of period      |       576.3 |          938.0 |      893.5 |
--------------------------------------------------------------------------------
| Personnel (average)              |       3,159 |          3,055 |      2,819 |
--------------------------------------------------------------------------------
*)pro forma                                                                     


Operations in Finland                                                           

The number of new private-sector housing starts made in 2008 was 504 (2007:     
852). The proportion of completed units that remain unsold has grown            
substantially in some localities, and after the summer not a single new housing 
start was made. The Company estimates that it is currently selling 20-30 housing
units a month.                                                                  

--------------------------------------------------------------------------------
| Lemminkäinen's private-sector   |   |         2008 |        2007 |      2006 |
| housing production, Finland     |   |              |             |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Housing starts	                |   |          504 |         852 |     1,558 |
--------------------------------------------------------------------------------
| Housing units sold              |   |          634 |         883 |     1,156 |
--------------------------------------------------------------------------------
| Unsold completed units          |   |          496 |         283 |        83 |
--------------------------------------------------------------------------------
| Completed                       |   |        1,030 |       1,488 |     1,173 |
--------------------------------------------------------------------------------
| Under construction at end of    |   |          587 |       1 123 |     1,698 |
| period                          |   |              |             |           |
--------------------------------------------------------------------------------


At the end of the accounting period Lemminkäinen owned a total of 818,000 m² of 
unused building rights, of which about 361,000 m² were residential building     
rights. The Company also has binding or conditional co-operation and zoning     
agreements for about 752,000 m², of which about 293,000 m² are residential      
building rights. The balance sheet value of the building plots was EUR 74.8     
million (80.5).                                                                 

Commercial, office and logistics construction activity was brisk at the         
beginning of the accounting period, but demand growth peaked and began to       
decline in the autumn. The volume of office construction in the Helsinki        
Metropolitan Area remained at a good level all year, but a marked fall-off in   
demand is expected in 2009. Among other consequences, the international         
financial crisis has weakened the financing opportunities open to foreign real  
estate investors. The yield requirements of investors rose significantly during 
the accounting period, especially in the case of properties located outside the 
Helsinki Metropolitan Area.                                                     

Refurbishment contracting continued to grow steadily in 2008 and the outlook for
the near future is also favourable. Refurbishment contracting accounted for 17 %
of Lemminkäinen's building construction during the accounting period, and that  
percentage is expected to rise in the future.                                   

International operations                                                        

International operations accounted for EUR 243.9 million (196.1) of the building
construction business sector's net sales in 2008. Almost a third of this        
international business was in Russia. As a result of the international financial
crisis the outlook in Russia has become gloomy and demand for construction has  
collapsed. No significant pick-up in the housing market is expected in the near 
future. The growth of private consumption in Russia will be weakened by factors 
such as devaluation of the rouble and the greater difficulty of obtaining       
consumer credit.                                                                

In 2008 new starts were made on 479 (91) private-sector housing units in Russia.
Towards the end of the year, work on 264 of these units was halted due to the   
sharp decline in housing sales. At the end of the accounting period the Company 
had 306 (91) housing units under construction. The number of housing units sold 
in 2008 was 103.                                                                

Despite the growth of recent years, the amount of capital that Lemminkäinen has 
tied up in Russia is still not significant. The region's seriously weakened     
market situation and slowdown in demand for housing does not therefore have any 
essential bearing on the Group's financial result.                              

In Sweden the Company made 84 new housing starts in the accounting period. The  
number of sold units at the end of the accounting period was 42.                

The focus of international project management contracting is still on the plant 
investment projects of Finnish industrial companies in countries such as China  
and India.                                                                      

In telecom networks construction the volume of business remained unchanged in   
2008, but price competition in this area was fierce. The market situation is not
expected to change greatly in the near future. The focus of Lemcon Networks'    
business remains on Latin America and Asia.                                     

IKEA and Lemminkäinen have settled their dispute over the termination of the    
construction contract for the St. Petersburg MEGA shopping centre. In accordance
with the settlement, Lemminkäinen has received the payment from IKEA and all the
claims made by the parties at the arbitral tribunal regarding the termination of
the construction contract have been withdrawn (Bulletin 30.12.2008).            


INFRASTRUCTURE CONSTRUCTION                                                     

The net sales of the infrastructure construction business sector rose 10 % to   
EUR 902.8 million (820.3)1).The increase in business volume was mainly due to   
paving and mineral aggregate operations in Finland. The business sector         
generated 54 % of its net sales in Finland, 30 % in other Nordic countries, 14 %
in the Baltic states and 2 % in Russia.                                         

The business sector's operating profit was down by a fifth at EUR 30.7 million  
(39.3)1). The result was weakened by increased input costs, the poor market     
situation in the Baltic states, and weak result in certain infrastructure       
projects in Finland.                                                            

The infrastructure construction order book was 10 % up on the previous year.    

--------------------------------------------------------------------------------
| Infrastructure construction       |         2008 |      2007*) |      2006*) |
| Key figures, EUR million          |              |             |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which               |        902.8 |       820.3 |       701.2 |
--------------------------------------------------------------------------------
| Operations abroad                 |        420.0 |       366.7 |       310.3 |
--------------------------------------------------------------------------------
| Operating profit                  |         30.7 |        39.3 |        43.1 |
--------------------------------------------------------------------------------
| Operating margin, %               |          3.4 |         4.8 |         6.2 |
--------------------------------------------------------------------------------
| Order book at end of period       |        365.4 |       326.5 |       334.9 |
--------------------------------------------------------------------------------
| Personnel (average)               |        3,658 |       3,365 |       3,072 |
--------------------------------------------------------------------------------
*)pro forma                                                                     


Operations in Finland                                                           

Lemminkäinen's paving operations continued to be brisk all year and the work    
season lasted well into the autumn. Approx. 6 million tonnes of asphalt mix was 
produced in Finland in 2008. Lemminkäinen's share of this national total was    
almost a half. However, the price level of asphalt paving remained low.         

In civil engineering, competition for new infrastructure projects remained      
fierce in 2008, and there was surplus capacity in the industry. Lemminkäinen's  
order book was supported by on-going transport infrastructure projects.         
Transport infrastructure construction is expected to pick up in the near future 
as a result of the government's stimulus measures and the start-up of some major
projects in 2010-2011.                                                          

In foundation engineering there were plenty of deep stabilisation contracts and 
foundation reinforcement works. In rock engineering Lemminkäinen strengthened   
its expertise during the summer by acquiring Tolarock Oy, a company specialised 
in mining excavation.                                                          

Demand for mineral aggregates and ready-mix concrete continued to be brisk in   
2008. Lemminkäinen is a partner in Scandinavia Cement, a cement importing       
company set up in autumn 2008 to ensure the supply of cement and improve        
competitiveness. The slowdown of building construction will weaken demand for   
mineral aggregates and ready-mix concrete in 2009.                              

International operations                                                        

Net sales from the infrastructure construction business sector's international  
operations grew, but profitability was significantly weaker than in the previous
year. The result was weakened mainly by the poor market situation in the Baltic 
states. Business volume will remain at a low level in the near future, even     
though EU-funded development of the Baltic states' road network will continue.  

In Sweden the rock engineering market remained brisk and in summer 2008         
Lemminkäinen received new railway tunnel construction contracts from Ådalsbana. 
To date, the Company has constructed no fewer than 14 railway tunnels in Sweden.
In Norway and Denmark the volume of paving work remained at the previous year's 
level, but profitability was impacted by increased input costs.                 

In Sweden and Norway the outlook for infrastructure construction is good, and   
demand will be boosted by stimulus measures aimed at infrastructure construction
by the governments of both countries. In Denmark the distressed state of        
municipal finances may weaken demand for paving works to some extent.           


TECHNICAL BUILDING SERVICES                                                     

The net sales of the technical building services business sector rose 17 % to   
EUR 269.5 million (230.2). Operating profit was up 44 % at EUR 17.0 million     
(11.9). Business volume grew profitably in all of segments of business sector.  

The business sector's order book at the end of the accounting period was down 13
% at EUR 97.7 million (111.9).                                                  


--------------------------------------------------------------------------------
| Technical building services       |          2008 |        2007 |       2006 |
| Key figures, EUR million          |               |             |            |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which               |         269.5 |       230.2 |      191.7 |
--------------------------------------------------------------------------------
| Operations abroad                 |           7.7 |         9.7 |        9.6 |
--------------------------------------------------------------------------------
| Operating profit                  |          17.0 |        11.9 |        6.9 |
--------------------------------------------------------------------------------
| Operating margin, %               |           6.3 |         5.2 |        3.6 |
--------------------------------------------------------------------------------
| Order book at end of period       |          97.7 |       111.9 |       74.9 |
--------------------------------------------------------------------------------
| Personnel (average)               |         2,013 |       1,918 |      1,812 |
--------------------------------------------------------------------------------

Brisk activity in commercial and office construction sustained demand for       
technical building services at a good level during the first half of the year.  
However, demand growth peaked in the second half and there has been a clear     
reduction in both the size and number of contracts. Regional variations are     
large, and especially in Helsinki Metropolitan Area the market has clearly      
become more subdued. The business sector's order book at the end of the         
accounting period was down by about a tenth on the previous year.               
                                                                                
The servicing and maintenance of technical building and facility systems is not 
sensitive to cyclical fluctuations in new building construction, and demand for 
such services continued to be brisk in 2008. The operations of Tekmanni Service 
Oy, which specialises in these services, developed favourably and the outlook   
for the near future is also good. Among other contracts, the company provided   
energy certificates for over 80 properties and also assessed the condition and  
replacement needs of the properties' technical systems.                         

Demand for the business sector's industrial services continued to be steady as  
industry is investing in power and heat production. In November Tekmanni's      
industrial services unit received five significant contract orders for the years
2008-2010. The orders include major installation contracts in Finland and       
Sweden.                                                                         
The slowdown in new building construction will weaken demand for technical      
building services in 2009. However, the modernisation of piped systems in       
residential buildings is expected to increase as a result of the grants promised
for the government's stimulus measures. Demand for the business sector's        
servicing, maintenance and refurbishment works is expected to remain good. These
operations already account for over a half of the business sector's net sales.  
BUILDING PRODUCTS                                                               

The net sales of the building products business sector rose 17 % to EUR 156.0   
million (133.8). Business volume was up in all segments of the business sector. 
Operating profit was slightly down at EUR 10.5 million (11.1).                  

The order book fell by a third and at the end of the review period was EUR 25.2 
million (37.7).                                                                 


--------------------------------------------------------------------------------
| Building products                 |         2008 |        2007 |        2006 |
| Key figures, EUR million          |              |             |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, of which               |        156.0 |       133.8 |       104.4 |
--------------------------------------------------------------------------------
| Operations abroad                 |          9.0 |        10.7 |         7.7 |
--------------------------------------------------------------------------------
| Operating profit                  |         10.5 |        11.1 |         5.0 |
--------------------------------------------------------------------------------
| Operating margin, %               |          6.7 |         8.3 |         4.8 |
--------------------------------------------------------------------------------
| Order book at end of period       |         25.2 |        37.7 |        23.4 |
--------------------------------------------------------------------------------
| Personnel (average)               |          839 |         749 |         609 |
--------------------------------------------------------------------------------

In roofing and waterproofing products the volume of contracting was up and the  
share of refurbishment contracting increased. The costs of raw materials, except
bitumen, fell and their availability improved. Exports of roofing materials to  
Russia and countries of the Baltic Rim region remained at a good level, and the 
exporting business was expanded into new market areas.                          

The slowdown in residential and office construction weakened demand for pre-case
concrete staircase units and wall elements. The market situation for sports and 
urban environment construction  remained good. For example, the municipalities  
made significant investments in the construction of parks and sporting          
facilities.                                                                     

The weakened outlook for new building construction will result in less demand   
for the business sector's products and services in 2009. In particular, the     
production of pre-cast concrete staircase units and wall elements is very       
sensitive to cyclical fluctuations in building construction. The aim in roofing 
and waterproofing products is to increase the volume of refurbishment work and  
contracting. The market situation in urban environment construction is expected 
to remain good also in 2009.                                                    


THE GROUP'S ORDER BOOK                                                          

The Group's order book was down by a quarter on the previous year. The market   
breakdown of the order book was Finland 75% (80), other Nordic countries 16 %   
(11), Russia  2 % (2), the Baltic states 5 % (3), and other countries 2% (4).   

--------------------------------------------------------------------------------
| Order book by business sector,    |         2008 |        2007 |        2006 |
| EUR million                       |              |             |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building construction             |        576.3 |     938.0*) |     893.5*) |
--------------------------------------------------------------------------------
| Infrastructure construction       |        365.4 |     326.5*) |     334.9*) |
--------------------------------------------------------------------------------
| Technical building services       |         97.7 |       111.9 |        74.9 |
--------------------------------------------------------------------------------
| Building products                 |         25.2 |        37.7 |        23.4 |
--------------------------------------------------------------------------------
| Group, total, of which            |      1,064.5 |     1,414.1 |     1,326.7 |
--------------------------------------------------------------------------------
| International orders              |        263.1 |       284.0 |       331.8 |
--------------------------------------------------------------------------------
*)pro forma                                                                     

Significant orders received in 2008                                             

Work started on the construction of a plant for Nokia Siemens Networks Oy in    
Chennai, India. The total floor area of the building is 33,000 m2.              

Construction work began on a spa resort for the City of Sundsvall in Sweden. The
construction works are worth approx. EUR 19 million.                            

Lemminkäinen signed an agreement with Nokian Tyres Plc concerning the technical 
building works on an extension to the company's tyre production plant in        
Vsevolozhsk, Russia. The total floor area of the new plant extension is 29,000  
m².                                                                             

A service agreement was signed with the Estonian Road Administration whereby    
Lemminkäinen assumed responsibility for the summer and winter maintenance of the
road network in Ida-Viru County for a period of 8 years.                        

In Russia, Lemminkäinen won a remix paving contract for a 150-kilometre-section 
of the M18 highway between St. Petersburg and Murmansk.                         

In the summer, excavation work began on underground spaces of the CityCenter and
Tallberg commercial buildings that connect to Helsinki's downtown service       
tunnel. In addition, fitting-out work began on the eastern end of the service   
tunnel. The combined value of the new works is approximately EUR 18 million.    

Lemminkäinen received two significant railway tunnel construction contracts from
Ådalsbana in Sweden. The combined length of the tunnels is approx. 5.5          
kilometres and the contracts are together worth EUR 43 million.                 

Significant orders received after the accounting period                         

Lemminkäinen has received a substantial road contract from Moldova that involves
basic improvement works on a 14-kilometre-long section of the highway. The      
contract will be completed at the end of 2010 and is worth EUR 13.5 million.    

CASH FLOW, FINANCING AND BALANCE SHEET                                          

According to the source and application of funds statement, the cash flow from  
operating activities was EUR 24.6 million (79.6), the cash flow from investing  
activities EUR -27.9 million (-29.5) and the cash flow from financing activities
EUR 177.3 million (-32.0). The cash flow for the accounting period includes     
dividends paid in 2007 totalling EUR 32.6 million (27.4).                       

The Company's net working capital rose 18 % to EUR 411.4 million (342.7), Net   
working capital was increased by housing production in progress and growth in   
trade receivables.                                                              

Liquid funds at the end of the accounting period were EUR 250.1 million (78.5). 
The financial position was strengthened by drawing on the full EUR 150 million  
credit limit. Good cash flows from operating activities in the final quarter of 
the year also strengthened the Company's cash reserves. The Company has unused  
TyEL pension premium loan allocations.                                          

Interest-bearing debt at the end of the accounting period were EUR 586.5 million
(357.0) and interest-bearing net debt was EUR 336.4 million (278.5). Net        
financing expenses were EUR 32.1 million (16.0), representing 1.3 % (0.7) of net
sales. Financing costs were increased by the growth of net debt and higher      
interest rates.                                                                 

Short-term interest-bearing liabilities at the end of the accounting period were
EUR 467.7 million, about 60 % of which were loans from financial institutions.  
The remainder was composed of commercial paper issued on the Finnish market,    
finance leasing liabilities, and project loans associated with the Company's own
housing production. Long-term interest-bearing liabilities were EUR 118.8       
million.                                                                        

The balance sheet total was EUR 1,413.3 million (1,069.0).  The return on       
investment was 17.7 % (20.7) and the equity ratio was 26.2% (31.2). Gearing was 
98.4 % (87.2).                                                                  


SHARES AND SHARE CAPITAL                                                        

The listed price of Lemminkäinen Corporation's share was EUR 31.50 (36.10) at   
the beginning of the accounting period and EUR 13.05 (31.50) at the end of the  
accounting period. The market capitalisation at the end of the accounting period
was EUR 222.1 million (536.2). Altogether 3,185,174 shares (5,203,588) were     
traded during the accounting period. The total value of the turnover was EUR    
87.3 million (233.6). At the end of the accounting period the Company had 4,511 
(3,643) 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.                            

During the accounting period Lemminkäinen was informed, in accordance with      
Chapter 2, Section 9 of the Finnish Securities Markets Act, of a change in the  
ownership of the Company's shares. The Estate of Heikki Pentti disclosed that   
its holdings of Lemminkäinen Corporation shares had decreased from 3,813,956 to 
1,906,976 shares, i.e. to approximately 11.2 per cent of all the shares and     
votes in Lemminkäinen Corporation.                                              


INVESTMENTS                                                                     

Investments in the accounting period amounted to EUR 60.2 million (61.4). 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 fairly small       
businesses and enterprises.                                                     

PERSONNEL                                                                       

The average number of employees in the Group during the accounting period was   
9,776 (9,201), of whom 71 % (72) worked in Finland, 11% (11) in other Nordic    
countries, 11% (11) in the Baltic states and 7% (6) in other countries.         

Lemminkäinen has set about adjusting its personnel levels in accordance with the
prevailing market situation. Codetermination negotiations have been initiated   
locally and in individual business sectors, and about 1,000 employees fall      
within the scope of the negotiations. Adjustment measures also continued after  
the accounting period due to a further deterioration in the market situation.   


--------------------------------------------------------------------------------
| Personnel (average)               |         2008 |        2007 |        2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Hourly paid workers               |        6,490 |       6,084 |       5,480 |
--------------------------------------------------------------------------------
| Salaried staff                    |        3,286 |       3,117 |       2,938 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total personnel, of whom          |        9,776 |      9,201  |       8,418 |
--------------------------------------------------------------------------------
| working abroad                    |        2,836 |       2,565 |       2,235 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel at end of period        |        8,910 |       8,718 |       8,087 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total wages, salaries and other   |              |             |             |
| remuneration                      |              |             |             |
--------------------------------------------------------------------------------
| for the accounting period, EUR    |        358.1 |       327.2 |       288.0 |
| million                           |              |             |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

ANNUAL GENERAL MEETING 2008 AND CORPORATE GOVERNANCE                            

Lemminkäinen Corporation's Annual General Meeting held on 14 March 2008 adopted 
the Company's final accounts and consolidated financial statements for 2007 and 
granted the Managing Director and the members of the Board of Directors         
discharge from liability. The Annual General Meeting decided, in accordance with
the Board of Directors' proposal, to pay a dividend of EUR 1.80 per share, i.e. 
a total dividend of EUR 30,638,250.00. The dividend's record date was 19 March  
2008 and the payment date was 28 March 2008.                                    

The Annual General Meeting decided, in accordance with the Board of Directors'  
proposal, to amend the Company's Articles of Association so that the regulations
concerning the nominal value of the Company's share and the minimum and maximum 
amounts of its share capital would be abolished.                                

Messrs. Berndt Brunow, Heikki Pentti, Teppo Taberman, Sakari Tamminen and Ms.   
Kristina Pentti (Mrs. Kristina Pentti-von Walzel) were re-elected to serve as   
members of the Board of Directors. Mr. Juhani Mäkinen, Counsellor of Law,       
attorney, was newly elected to serve as a Board member. PricewaterhouseCoopers  
Oy, a firm of authorised public accountants, was re-elected to serve as the     
Company's auditor, with Mr. Jan Holmberg, APA acting as the chief auditor.      

Heikki Pentti, long-serving Chairman of Lemminkäinen Corporation's Board of     
Directors and the Company's biggest shareholder, passed away on 19 April 2008.  
Heikki Pentti was a director of the Company for 39 years. He served as the      
Company's Managing Director in the years 1983-1993 and as the Chairman of the   
Board of Directors from 1994 onwards.                                           

Lemminkäinen Corporation's Board of Director held an organising meeting after   
the death of Heikki Pentti. Mr. Berndt Brunow was elected to serve as the       
Chairman of the Board, and Mr. Juhani Mäkinen as the Vice Chairman. The Board of
Directors will work as a five-member body until the next Annual General Meeting 
is held in spring 2009.                                                         


COMMITTEES OF THE BOARD OF DIRECTORS                                            

The Board of Directors chooses 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. All of the Board members can participate in meetings of the Audit
Committee and the Remuneration and Appointments Committee.                      
In 2008 Mr. Berndt Brunow served as the Chairman of the Nominating Committee,   
with Messrs. Teppo Taberman and Sakari Tamminen serving as committee members. On
1 January 2008 the Chairman of the Audit Committee was Mr. Sakari Tamminen, with
Messrs. Berndt Brunow, Teppo Taberman and Heikki Pentti serving as committee    
members. From 7 May 2008 onwards, Mr. Sakari Tamminen served as the Chairman,   
with Mr. Juhani Mäkinen and Mrs. Kristina Pentti-von Walzel serving as committee
members. On 1 January 2008 the Chairman of the Remuneration and Appointments    
Committee was Mr. Heikki Pentti, with Messrs. Berndt Brunow and Teppo Taberman  
serving as committee members. From 7 May 2008 onwards, Mr. Teppo Taberman served
as the Chairman, with Messrs. Juhani Mäkinen and Berndt Brunow serving as       
committee members.                                                              


CHANGES IN THE COMPANY'S MANAGEMENT                                             

On 5 November 2008 the Board of Directors appointed Mr. Timo Kohtamäki, Lic.    
Tech. to serve as the Managing Director of Lemminkäinen Corporation with effect 
from 1 January 2009. Mr. Juhani Sormaala, M.Sc.(Eng), B.Sc.(Econ.) retired,     
having served as the Managing Director of Lemminkäinen Corporation since 1994.  

Mr. Henrik Eklund, M.Sc.(Eng.) the Company's present Deputy Managing Director,  
was appointed to serve as the head of the infrastructure construction business  
sector and Managing Director of Lemminkäinen Infra Oy.                          

After the end of the accounting period Ms. Tiina Kihlakaski, M.Sc. (Econ.) was  
appointed to serve as Lemminkäinen Corporation's Director, Human Resources, and 
a member of the Executive Board with effect from 7 January 2009.                


LITIGATION                                                                      

Asphalt industry cartel case                                                    

In December 2007 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.                                                        

In addition to Lemminkäinen, the Finnish Competition Authority and some asphalt 
industry companies have appealed the decision to the Supreme Administrative     
Court. Irrespective of these 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.                                            

On 18 June 2008 Lemminkäinen was informed of an application for a summons in    
which the Finnish Road Administration is demanding compensatory damages from    
different asphalt companies before the Helsinki District Court. Lemminkäinen's  
share of the claimed compensation is at most EUR 10.5 million. The Finnish Road 
Administration is also seeking damages of at most EUR 5.6 million from          
Lemminkäinen, under joint and several liability with other defendant companies. 
The Finnish Road Administration has asked the Helsinki District Court to        
postpone the hearing of the case until the competition restriction case has been
resolved in the Supreme Administrative Court.                                   

IKEA                                                                            

IKEA and Lemcon, a Lemminkäinen Group company, have reached an agreement on the 
payment to be paid by IKEA to Lemcon due to the termination of a construction   
contract. The contract in question concerned the St. Petersburg MEGA shopping   
centre and was worth EUR 92 million. The parties have agreed not to disclose the
amount of the payment. As a result of the settlement, the parties will withdraw 
all claims made at the arbitral tribunal regarding the termination of the       
construction contract. Arbitration proceedings regarding the dispute have been  
on-going in Stockholm since 2006 in accordance with the rules of the Stockholm  
Chamber of Commerce's Arbitration Institute.                                    


RISKS AND UNCERTAINTIES                                                         

Lemminkäinen's business risks are divided into six categories: market risks,    
project risks, financing risks, credit loss risks, environmental risks, and     
accidents and damage. The measures necessary to manage the most significant     
identified risks have been specified.                                           

Market risk poses the most significant threat to Lemminkäinen in the near       
future. The international financial crisis and economic downturn are creating   
uncertainty in key sectors of Lemminkäinen's operating environment and making   
its more difficult to foresee future changes. As a consequence of this,         
Lemminkäinen has set about making the necessary adjustments to its business     
operations.                                                                     

The sharp fall-off in demand for housing production has increased Lemminkäinen's
exposure to market risk. The Company has significantly reduced the volume of its
housing production from the level of the previous year. In 2009 new housing     
starts will be made only if a sufficiently high percentage of the units are     
reserved by buyers in advance. In Russia, Lemminkäinen has halted construction  
work on almost 300 housing units.                                               

The financing difficulties experienced by Lemminkäinen's customers may have a   
weakening effect on demand for the Company's goods and services. Particular     
attention is being paid to credit loss risks, and trade receivables are being   
actively monitored.                                                             

Operating in a number of business sectors with differing cyclical behaviours is 
a cornerstone of Lemminkäinen's strategy. Fluctuating demand for new            
construction in Finland is counterbalanced by infrastructure construction.      
Building repair and maintenance account for more than a third of the Group's    
business.                                                                       

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


RESEARCH AND DEVELOPMENT                                                        

Lemminkäinen's research and development work focuses on the development of      
operational prerequisites and the quality assurance of products and services.   
Careful consideration of safety issues and environmental effects is an important
principle 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 2008 the Group's research and development expenditure
accounted for 0.7 % of net sales.                                               

THE ENVIRONMENT                                                                 

Environmentally responsible construction is one of Lemminkäinen's values.       
Lemminkäinen Group takes life-cycle and environmental perspectives into account 
when developing its operations, products and services. The management of        
environmental affairs and the effects of the Group's operations on the          
environment are continuously monitored by means of internal monitoring and      
control programmes.                                                             
The Company's Annual Report and website provide more information on             
Lemminkäinen's environmental issues.                                            

OUTLOOK FOR 2009                                                                

The volume of new building construction in Finland will contract in 2009.  No   
significant pick-up in the housing market is expected, and there will be a      
marked reduction in commercial and office construction activity, especially     
towards the end of the year. Refurbishment contracting will continue to grow    
steadily. In Russia the uncertain economic situation will probably keep the     
volume of construction at a low level.                                          

The Finnish government has decided on a stimulus package that will boost        
infrastructure appropriations for 2009. Major infrastructure projects now       
starting up will keep the market situation favourable for the next few years. In
other Nordic countries the situation will be similar to Finland, but the markets
of the Baltic states will remain weak.                                          

Forecasting economic development over the second half of the year is            
exceptionally challenging. Based on the existing order book and the uncertain   
market situation, Lemminkäinen expects its full-year net sales and profit before
taxes to fall well short of the 2008 level.                                     


BOARD OF DIRECTORS' PROPOSAL FOR THE DISTRIBUTION OF PROFITS                    

The distributable shareholders' equity shown on the consolidated balance sheet  
as of 31 December 2008 amounts to EUR 261,326,385.32. The distributable         
shareholders' equity shown on the balance sheet of the parent company,          
Lemminkäinen Corporation, amounts to EUR 87,955,318.59, consisting of EUR       
718,416.16 in retained earnings from previous years and EUR 87,236,902.43 in    
profit 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 0.90 (1.80) per share for
the 2008 accounting period, i.e. a total of EUR 15,319,125.00 (30,638,250.00)   
Helsinki, 11 February 2009                                                      

LEMMINKÄINEN CORPORATION                                                        
Board of Directors                                                              


TABULATED SECTION OF THE FINANCIAL STATEMENTS BULLETIN                          
ACCOUNTING PRINCIPLES                                                           

The consolidated financial statements have been prepared in accordance with     
International Financial Reporting Standards, observing the IAS and IFRS         
standards and SIC and IFRIC interpretations in force on 31 December 2008. The   
IFRS recognition and measurement principles applied in the preparation of the   
financial statements are the same as those used in the financial statements for 
2007 except for the changes that are stated below.                              

The share of the results of affiliated companies that was earlier recognised as 
a financial item is now included in operating profit because shares in the      
results of affiliated companies belong to the operations of reporting business  
segments.                                                                       

The business areas of Lemminkäinen Group's affiliated companies are road        
maintenance and upkeep, property development, road markings, asphalt production 
and paving, and mineral aggregates production, so the change in presentation    
format is in better keeping with the nature of these operations. The change     
increases the operating profit by EUR 1.2 million in the accounting period and  
by EUR 0.9 million in the comparative period. The change does not have any      
effect on the result before taxes. The comparative figures have been adjusted.  

New and revised standards and interpretations which came into force in 2008 but 
do not have any essential bearing on the consolidated financial statements:     

- IFRIC 11 concerning the application of IFRS 2 to share-based payments 
- IFRIC 12 Service Concession Arrangements 
- IFRIC 14, IAS 19 The Limit and Defined Benefit Assets, Minimum Funding 
Requirements and their Interaction                                              
- IAS 39 (amendment) and IFRS 7 (amendment) Reclassification of Financial
Assets. 
The amendment permits certain financial assets to be reclassified out of the    
held-for-trading-purposes or available-for-sale categories provided that certain
conditions are met. The amendment has been applicable since 1 July 2008. The    
Group did not apply the amendment during the accounting period.                 


The standards and interpretations published by IASB and listed below will come  
into force in 2009 or thereafter. The Group has decided against their early     
adoption and will apply them in future accounting periods.                      

- IAS 1 (revised) Presentation of Financial Statements. The revision is aimed at
improving users' ability to analyse and compare the information given in        
financial statements, for example, by showing changes in a company's equity     
resulting from transactions with owners separately from other changes in equity.
Changes not connected with the owners will be presented in a comprehensive      
statement of income. The Group is studying the effect of the revised standard on
the presentation format of the financial statements.                            

- IAS 23 (revised) Borrowing costs. The revision requires borrowing costs       
directly attributable to the acquisition, construction or production of a       
qualifying asset to be capitalised as part of the cost of that asset. The direct
recognition of these costs as expenses is not permitted. The Group will start   
capitalising these costs in projects commencing in 2009 and in                  
percentage-of-completion projects. The revision of the standard is not expected 
to have any essential bearing on the Group's projects.                          

- IAS 32 (amendment) Financial Instruments: Presentation; and IAS 1 (revised)   
Presentation of Financial Statements - Financial Instruments Puttable at Fair   
Value and Obligations Arising on Liquidation. The revisions of the standards    
require certain puttable financial instruments, as well as certain instruments  
that impose on the entity an obligation to deliver to another party a pro-rata  
share of the net assets of the entity only on liquidation, to be classified as  
equity. The Group is clarifying the effect of the change on the consolidated    
financial statements.                                                           

- IFRS 2 Share-based Payment - the amendment to the standard clarifies that     
vesting conditions are service conditions and performance conditions only. All  
other features of a share-based payment are non-vesting conditions. It also     
specifies that all cancellations should receive the same accounting treatment.  
At present the Group does not have any share-based payments, so the amendment to
the standard will not have any effect on the financial statements at this time. 

- IFRS 8 Operating Segments - the standard came into force on 1 January 2009.   
Adoption of the standard in the 2009 accounting period will affect neither the  
number of the Company's operating segments nor the cash-generating units. In    
future the Group will report management's segment information in conformity with
IFRS figures.                                                                   

Future effects of new interpretations of IFRS standards                         

In summer 2008 the International Financial Reporting Interpretations Committee  
(IFRIC) issued interpretation IFRIC 15 - Agreements for the Construction of Real
Estate. The interpretation will be applied for the first time retrospectively in
the accounting period beginning 1 January 2009 or thereafter. The interpretation
has not yet been approved in the European Union. In Lemminkäinen Group the      
interpretation is expected to affect mainly the income recognition practice for 
own building production. The effect of the new interpretation on the Company's  
financial reporting is currently being clarified.                               

The information contained in the financial statements bulletin has not been     
audited.                                                                        

The sector-specific comparative figures presented in the financial statements   
bulletin with regard to the building construction and infrastructure            
construction business sectors are pro forma figures                             


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 
13) Litigation                                                                  


--------------------------------------------------------------------------------
| 1) CONSOLIDATED INCOME STATEMENT                            |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill.                 | 12/20 | 12/20 | Change | Change |       |        |
|                           |    08 |    07 |        |      , |       |        |
--------------------------------------------------------------------------------
|                   |       |       |       |        |      % |       |        |
--------------------------------------------------------------------------------
| Net sales                 | 2,481 | 2,174 |  307.7 |   14.2 |       |        |
|                           |    .8 |    .1 |        |        |       |        |
--------------------------------------------------------------------------------
| Other operating income    |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| and expenses              | -2,32 | -2,01 | -311.4 |   15.5 |       |        |
|                           |   5.0 |   3.6 |        |        |       |        |
--------------------------------------------------------------------------------
| Depreciation              |  34.9 |  34.2 |    0.7 |    2.0 |       |        |
--------------------------------------------------------------------------------
| Share of the results of   |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| affiliated companies      |   1.2 |   0.9 |    0.3 |   33.3 |       |        |
--------------------------------------------------------------------------------
| Operating profit          | 123.2 | 127.2 |   -4.0 |   -3.1 |       |        |
--------------------------------------------------------------------------------
| Financial expenses        |  50.7 |  22.2 |   28.5 |   Over |       |        |
|                           |       |       |        |    100 |       |        |
--------------------------------------------------------------------------------
| Financial income          |  18.5 |   6.2 |   12.3 |   Over |       |        |
|                           |       |       |        |    100 |       |        |
--------------------------------------------------------------------------------
| Result before taxes       |  91.0 | 111.2 |  -20.2 |  -18.2 |       |        |
--------------------------------------------------------------------------------
| Income taxes              | -27.5 | -30.6 |    3.1 |   10.1 |       |        |
--------------------------------------------------------------------------------
| Result for the            |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| accounting period         |  63.5 |  80.6 |  -17.1 |  -21.2 |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the       |       |       |        |        |       |        |
| result                    |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| for the accounting period |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| To shareholders of        |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| the parent company        |  55.9 |  72.9 |  -17.0 |  -23.3 |       |        |
--------------------------------------------------------------------------------
| To minority interests     |   7.6 |   7.6 |    0.0 |    0.0 |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from result attributable to parent company           |        |
| shareholders                                                        |        |
--------------------------------------------------------------------------------
| Earnings per share,       |       |       |        |        |       |        |
| diluted and               |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| undiluted, EUR            |  3.28 |  4.29 |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2) CONSOLIDATED BALANCE SHEET                               |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. |       |       |       | 12/20 | 12/200 |        |       |        |
|           |       |       |       |    08 |      7 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets                |       |        |        |       |        |
--------------------------------------------------------------------------------
| Tangible assets                   | 187.0 |  176.1 |        |       |        |
--------------------------------------------------------------------------------
| Goodwill                          |  74.9 |   75.1 |        |       |        |
--------------------------------------------------------------------------------
| Other intangible assets           |   2.5 |    2.6 |        |       |        |
--------------------------------------------------------------------------------
| Investments                       |  10.7 |    9.7 |        |       |        |
--------------------------------------------------------------------------------
| Deferred tax asset                |   7.2 |    4.9 |        |       |        |
--------------------------------------------------------------------------------
| Other non-current receivables     |   6.3 |    3.7 |        |       |        |
--------------------------------------------------------------------------------
| Total                             | 288.7 |  272.1 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                    |       |        |        |       |        |
--------------------------------------------------------------------------------
| Inventories                       | 398.2 |  330.9 |        |       |        |
--------------------------------------------------------------------------------
| Trade and other receivables       | 476.3 |  387.4 |        |       |        |
--------------------------------------------------------------------------------
| Cash funds                        | 250.1 |   78.5 |        |       |        |
--------------------------------------------------------------------------------
| Total                             | 1,124 |  796.9 |        |       |        |
|                                   |    .7 |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets, total                     | 1,413 | 1,069. |        |       |        |
|                                   |    .3 |      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               |  -1.7 |    0.2 |        |       |        |
--------------------------------------------------------------------------------
| Translation differences           |  -4.7 |    0.1 |        |       |        |
--------------------------------------------------------------------------------
| Retained earnings                 | 224.8 |  182.5 |        |       |        |
--------------------------------------------------------------------------------
| Result for the period             |  55.9 |   72.9 |        |       |        |
--------------------------------------------------------------------------------
| Shareholders' equity              |       |        |        |       |        |
--------------------------------------------------------------------------------
| before minority interest          | 314.0 |  295.5 |        |       |        |
--------------------------------------------------------------------------------
| Minority interest                 |  27.8 |   23.7 |        |       |        |
--------------------------------------------------------------------------------
| Shareholders' equity, total       | 341.8 |  319.2 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities           |       |        |        |       |        |
--------------------------------------------------------------------------------
| Deferred tax liabilities          |  18.7 |   12.9 |        |       |        |
--------------------------------------------------------------------------------
| Pension liabilities               |   0.2 |    0.6 |        |       |        |
--------------------------------------------------------------------------------
| Provisions                        |   2.2 |    1.7 |        |       |        |
--------------------------------------------------------------------------------
| Interest-bearing liabilities      | 118.8 |  139.5 |        |       |        |
--------------------------------------------------------------------------------
| Other liabilities                 |   1.3 |    1.9 |        |       |        |
--------------------------------------------------------------------------------
| Total                             | 141.2 |  156.6 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities               |       |        |        |       |        |
--------------------------------------------------------------------------------
| Accounts payable and other        | 455.6 |  369.2 |        |       |        |
| liabilities                       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Provisions                        |   7.1 |    6.4 |        |       |        |
--------------------------------------------------------------------------------
| Interest-bearing liabilities      | 467.7 |  217.6 |        |       |        |
--------------------------------------------------------------------------------
| Total                             | 930.4 |  593.2 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and          |       |        |        |       |        |
--------------------------------------------------------------------------------
| liabilities, total                | 1,413 | 1,069. |        |       |        |
|                                   |    .3 |      0 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3) STATEMENT OF SOURCE AND APPLICATION OF FUNDS             |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. |       |       |       | 12/20 | 12/200 |        |       |        |
|           |       |       |       |    08 |      7 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before extraordinary items |  91.0 |  111.2 |        |       |        |
--------------------------------------------------------------------------------
| Depreciation according to plan    |  34.9 |   34.2 |        |       |        |
--------------------------------------------------------------------------------
| Other adjustments                 |  26.7 |    7.7 |        |       |        |
--------------------------------------------------------------------------------
| Cash flow before change           |       |        |        |       |        |
--------------------------------------------------------------------------------
| in working capital                | 152.6 |  153.1 |        |       |        |
--------------------------------------------------------------------------------
| Change in working capital         | -45.3 |  -32.9 |        |       |        |
--------------------------------------------------------------------------------
| Financial items                   | -31.4 |  -17.9 |        |       |        |
--------------------------------------------------------------------------------
| Direct taxes paid                 | -51.2 |  -22.6 |        |       |        |
--------------------------------------------------------------------------------
| Cash flow from operating          |  24.6 |   79.6 |        |       |        |
| activities                        |       |        |        |       |        |
--------------------------------------------------------------------------------
| Cash flow provided by investing   |  15.2 |   24.3 |        |       |        |
| activities                        |       |        |        |       |        |
--------------------------------------------------------------------------------
| Cash flow used in investing       | -43.2 |  -53.8 |        |       |        |
| activities                        |       |        |        |       |        |
--------------------------------------------------------------------------------
| Change in non-current receivables |  -1.6 |   -1.4 |        |       |        |
--------------------------------------------------------------------------------
| Drawings of loans                 | 1,740 |  329.3 |        |       |        |
|                                   |    .4 |        |        |       |        |
--------------------------------------------------------------------------------
| Repayments of loans               | -1,52 | -332.5 |        |       |        |
|                                   |   8.9 |        |        |       |        |
--------------------------------------------------------------------------------
| Dividends paid                    | -32.6 |  -27.4 |        |       |        |
--------------------------------------------------------------------------------
| Cash flow from financing          | 177.3 |  -32.0 |        |       |        |
| activities                        |       |        |        |       |        |
--------------------------------------------------------------------------------
| Change in cash funds              | 174.0 |   18.1 |        |       |        |
--------------------------------------------------------------------------------
| Cash funds at beginning of period |  78.5 |   60.6 |        |       |        |
--------------------------------------------------------------------------------
| Translation difference of cash    |  -2.4 |   -0.2 |        |       |        |
| funds                             |       |        |        |       |        |
--------------------------------------------------------------------------------
| Cash funds at end of period       | 250.1 |   78.5 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4) STATEMENT OF CHANGES IN EQUITY                           |       |        |
--------------------------------------------------------------------------------
|           |       |       |       |       |        |        |       |        |
|           |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
|           |       | Share | Trans | Reval |        |        |Share-          |
|           |       |       | -     | u-    |        |        |holders'        |
--------------------------------------------------------------------------------
| EUR mill. | Share | premi | latio | ation | Retain | Minori | equit |        |
|           |       | um    | n     |       | ed     | ty     | y     |        |
--------------------------------------------------------------------------------
| capital           | accou | diffe | reser | earnin | intere | total |        |
|                   | nt    | rence | ve    | gs     | st     |       |        |
--------------------------------------------------------------------------------
| Shareholders'     |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| equity,           |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| 1.1.2007  | 34.0  | 5.8   | 0.1   | 0.1   | 208.1  | 19.7   | 267.7 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| difference        |       | 0.4   |       |        |        | 0.4   |        |
--------------------------------------------------------------------------------
| Hedging of net    |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| investment in     |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| foreign           |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| subsidiary        |       | -0.4  |       |        |        | -04   |        |
--------------------------------------------------------------------------------
| 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  | -1.9   | -27.4 |        |
--------------------------------------------------------------------------------
| Result for the    |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| accounting        |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| period            |       |       |       | 72.9   | 7.6    | 80.6  |        |
--------------------------------------------------------------------------------
| Change in         |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| minority          |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| interest          |       |       |       |        | -1.7   | -1.7  |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders'     |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| equity,   |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| 31.12.200 | 34.0  | 5.8   | 0.1   | 0.2   | 255.4  | 23.7   | 319.2 |        |
| 7         |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|           |       |       |       |       |        |        | Share |        |
|           |       |       |       |       |        |        | -     |        |
--------------------------------------------------------------------------------
|           |       | Share | Trans | Reval |        |        |holders'        |
|           |       |       | -     | u-    |        |                |        |
--------------------------------------------------------------------------------
| EUR mill. | Share | premi | latio | ation | Retain | Minori | equit |        |
|           |       | um    | n     |       | ed     | ty     | y     |        |
--------------------------------------------------------------------------------
| capital           | accou | diffe | reser | earnin | intere | total |        |
|                   | nt    | rence | ve    | gs     | st     |       |        |
--------------------------------------------------------------------------------
| Shareholders'     |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| equity,           |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| 1.1.2008  | 34.0  | 5.8   | 0.1   | 0.2   | 255.4  | 23.7   | 319.2 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| difference        |       | -6.4  |       |        |        | -6.4  |        |
--------------------------------------------------------------------------------
| Hedging of net    |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| investment in     |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| foreign           |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| subsidiary        |       |  1.6  |       |        |        | 1.6   |        |
--------------------------------------------------------------------------------
| Cash flow         |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| hedges            |       |       | -1.9  |        |        | -1.9  |        |
--------------------------------------------------------------------------------
| Effect of         |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| sold shares       |       |       | 0.0   |        |        | 0.0   |        |
--------------------------------------------------------------------------------
| Reversal of       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| dividend          |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| liability         |       |       |       | 0.0    |        | 0.0   |        |
--------------------------------------------------------------------------------
| Dividend          |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| distribution      |       |       |       | -30.6  | -2.9   | -33.6 |        |
--------------------------------------------------------------------------------
| Result for the    |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| accounting        |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| period            |       |       |       | 55.99  | 7.6    | 63.5  |        |
--------------------------------------------------------------------------------
| Change in         |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| minority          |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| interest          |       |       |       |        | -0.6   | -0.6  |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders'     |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| equity,           |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| 31.12.200 | 34.0  | 5.8   | -4.7  | -1.7  | 280.7  | 27.8   | 341.8 |        |
| 8         |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5) CONSOLIDATED INCOME STATEMENT, QUARTERLY                 |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|           |  4-6/ |  7-9/ | 10-12 |  1-3/ |   4-6/ |   7-9/ | 10-12 |        |
|           |       |       |     / |       |        |        |     / |        |
--------------------------------------------------------------------------------
| EUR mill. |  2007 |  2007 |  2007 |  2008 |   2008 |   2008 |  2008 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 551.9 | 655.7 | 638.5 | 444.9 |  645.9 |  648.5 | 742.5 |        |
--------------------------------------------------------------------------------
| Other     |       |       |       |       |        |        |       |        |
| operating |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| income    |       |       |       |       |        |        |       |        |
| and       |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| expenses  | -498. | -585. | -607. | -445. | -599.4 | -582.5 | -697. |        |
|           |     0 |     8 |     0 |     3 |        |        |     7 |        |
--------------------------------------------------------------------------------
| Depreciat |   9.0 |  12.3 |   8.1 |   4.9 |    9.3 |   13.5 |  -7.2 |        |
| ion       |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Share of the      |       |       |       |        |        |       |        |
| results           |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| of        |       |       |       |       |        |        |       |        |
| affiliate |       |       |       |       |        |        |       |        |
| d         |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| companies |   0.1 |   0.7 |   0.3 |  -0.2 |    0.4 |    1.1 |  -0.1 |        |
--------------------------------------------------------------------------------
| Operating |  45.1 |  58.3 |  23.6 |  -5.5 |   37.6 |   53.6 |  37.5 |        |
| profit    |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Financial |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| expenses  |   5.1 |   6.3 |   6.7 |   7.8 |    9.8 |    5.2 |  27.9 |        |
--------------------------------------------------------------------------------
| Financial |   1.9 |   0.6 |   2.7 |   1.7 |    3.3 |    0.2 |  13.4 |        |
| income    |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Result    |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| before    |  41.9 |  52.6 |  19.6 | -11.6 |   31.0 |   48.6 |  23.0 |        |
| taxes     |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Income    | -10.2 | -12.3 |  -9.2 |   2.2 |   -7.6 |  -11.8 | -10.3 |        |
| taxes     |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Result    |       |       |       |       |        |        |       |        |
| for the   |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| accountin |       |       |       |       |        |        |       |        |
| g         |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| period    |  31.7 |  40.3 |  10.4 |  -9.4 |   23.4 |   36.8 |  12.7 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of the result for the accounting period                |        |
--------------------------------------------------------------------------------
| To shareholders   |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| of the parent     |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| company   |  30.2 |  38.7 |   7.8 | -10.0 |   22.1 |   34.5 |   9.3 |        |
--------------------------------------------------------------------------------
| To        |       |       |       |       |        |        |       |        |
| minority  |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| interests |   1.5 |   1.6 |   2.6 |   0.6 |    1.4 |    2.3 |   3.4 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS calculated from result attributable to parent company           |        |
| shareholders                                                        |        |
--------------------------------------------------------------------------------
| Earnings per share, diluted and undiluted                           |        |
--------------------------------------------------------------------------------
| EUR       |  1.77 |  2.27 |  0.46 | -0.59 |   1.30 |   2.03 |  0.55 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6) NET SALES BY BUSINESS SECTOR                             |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. |       |       | 12/20 | 12/20 | Change | Change |       |        |
|           |       |       |    08 |    07 |        |      , |       |        |
--------------------------------------------------------------------------------
|           |       |       |       |       |        |      % |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building construction     | 1,205 | 1,042 |  162.8 |   15.6 |       |        |
|                           |    .7 |    .9 |        |        |       |        |
--------------------------------------------------------------------------------
| Infrastructure            | 902.8 | 820.3 |   82.5 |   10.1 |       |        |
| construction              |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Technical building        | 269.5 | 230.2 |   39.3 |   17.1 |       |        |
| services                  |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Building products         | 156.0 | 133.8 |   22.2 |   16.6 |       |        |
--------------------------------------------------------------------------------
| Other operations          | -52.2 | -53.0 |    0.8 |    1.5 |       |        |
--------------------------------------------------------------------------------
| Group total               | 2,481 | 2,174 |  307.7 |   14.2 |       |        |
|                           |    .8 |    .1 |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7) NET SALES BY BUSINESS SECTOR, QUARTERLY                  |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|           |  4-6/ |  7-9/ | 10-12 |  1-3/ |   4-6/ |   7-9/ | 10-12 |        |
|           |       |       |     / |       |        |        |     / |        |
--------------------------------------------------------------------------------
| EUR mill. |  2007 |  2007 |  2007 |  2008 |   2008 |   2008 |  2008 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building  | 250.3 | 268.0 | 332.6 | 276.6 |  295.3 |  207.3 | 426.5 |        |
| construct |       |       |       |       |        |        |       |        |
| ion       |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Infrastru |       |       |       |       |        |        |       |        |
| cture     |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| construct | 220.0 | 301.7 | 217.2 |  95.5 |  250.5 |  337.8 | 219.0 |        |
| ion       |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Technical |       |       |       |       |        |        |       |        |
| building  |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| services  |  57.2 |  58.5 |  68.3 |  56.5 |   68.0 |   68.7 |  76.3 |        |
--------------------------------------------------------------------------------
| Building  |  39.5 |  41.2 |  34.5 |  25.0 |   45.8 |   51.0 |  34.2 |        |
| products  |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Other     | -15.2 | -13.6 | -14.1 |  -8.6 |  -13.7 |  -16.3 | -13.5 |        |
| operation |       |       |       |       |        |        |       |        |
| s         |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Group     | 551.9 | 655.7 | 638.5 | 444.9 |  645.9 |  648.5 | 742.5 |        |
| total     |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8) OPERATING PROFIT BY BUSINESS SECTOR                      |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. |       |       | 12/20 | 12/20 | Change | Change |       |        |
|           |       |       |    08 |    07 |        |      , |       |        |
--------------------------------------------------------------------------------
|                           |       |       |        |      % |       |        |
--------------------------------------------------------------------------------
| Building construction     |  71.8 |  71.7 |    0.1 |    0.1 |       |        |
--------------------------------------------------------------------------------
| Infrastructure            |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| construction              |  30.7 |  39.3 |   -8.6 |  -21.9 |       |        |
--------------------------------------------------------------------------------
| Technical         |       |       |       |        |        |       |        |
| building          |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| services                  |  17.0 |  11.9 |    5.1 |   42.9 |       |        |
--------------------------------------------------------------------------------
| Building products         |  10.5 |  11.1 |   -0.6 |   -5.4 |       |        |
--------------------------------------------------------------------------------
| Other operations          |  -6.8 |  -6.7 |   -0.1 |    1.5 |       |        |
--------------------------------------------------------------------------------
| Group total               | 123.2 | 127.2 |   -4.0 |   -3.1 |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9) OPERATING PROFIT BY BUSINESS SECTOR, QUARTERLY           |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|           |  4-6/ |  7-9/ | 10-12 |  1-3/ |   4-6/ |   7-9/ | 10-12 |        |
|           |       |       |     / |       |        |        |     / |        |
--------------------------------------------------------------------------------
| EUR mill. |  2007 |  2007 |  2007 |  2008 |   2008 |   2008 |  2008 |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Building  |  17.0 |  14.3 |  25.8 |  10.1 |   11.3 |   14.4 |  36.0 |        |
| construct |       |       |       |       |        |        |       |        |
| ion       |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Infrastru |       |       |       |       |        |        |       |        |
| cture     |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| construct |  20.8 |  36.7 |  -5.5 | -14.9 |   19.2 |   27.2 |  -0.8 |        |
| ion       |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Technical |       |       |       |       |        |        |       |        |
| building  |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| services  |   3.3 |   3.5 |   3.8 |   2.2 |    5.9 |    5.9 |   3.0 |        |
--------------------------------------------------------------------------------
| Building  |   4.7 |   5.6 |   2.0 |  -1.5 |    4.9 |    6.2 |   0.9 |        |
| products  |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Other     |  -0.8 |  -1.7 |  -2.4 |  -1.3 |   -3.7 |   -0.2 |  -1.5 |        |
| operation |       |       |       |       |        |        |       |        |
| s         |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Group     |  45.1 |  58.3 |  23.6 |  -5.5 |   37.6 |   53.6 |  37.5 |        |
| total     |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 10) ECONOMIC TRENDS AND FINANCIAL INDICATORS                        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                                   | 12/20 | 12/200 |        |       |        |
|                                   |    08 |      7 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, %               |  19.2 |   27.5 |        |       |        |
--------------------------------------------------------------------------------
| Return on investment, %           |  17.7 |   20.7 |        |       |        |
--------------------------------------------------------------------------------
| Operating margin, % of net sales  |   5.0 |    5.8 |        |       |        |
--------------------------------------------------------------------------------
| Equity ratio, %                   |  26.2 |   32.7 |        |       |        |
--------------------------------------------------------------------------------
| Gearing, %                        |  98.4 |   87.2 |        |       |        |
--------------------------------------------------------------------------------
| Interest-bearing net debt, EUR    | 336.4 |  278.5 |        |       |        |
| million                           |       |        |        |       |        |
--------------------------------------------------------------------------------
| Gross investments, EUR million    |       |        |        |       |        |
--------------------------------------------------------------------------------
| (incl. leasing purchases)         |  60.2 |   61.4 |        |       |        |
--------------------------------------------------------------------------------
| Order book, EUR mill.             |     1 |      1 |        |       |        |
|                                   | 064.5 |  414.1 |        |       |        |
--------------------------------------------------------------------------------
| - of which foreign orders, EUR    | 263.1 |  284.0 |        |       |        |
| mill.                             |       |        |        |       |        |
--------------------------------------------------------------------------------
| Average number of employees       | 9 776 |  9 201 |        |       |        |
--------------------------------------------------------------------------------
| Employees at end of period        | 8 910 |  8 718 |        |       |        |
--------------------------------------------------------------------------------
| Net sales, EUR mill.              |     2 |      2 |        |       |        |
|                                   | 481.8 |  174.1 |        |       |        |
--------------------------------------------------------------------------------
| - of which operations abroad, EUR | 676.7 |  581.6 |        |       |        |
| mill.                             |       |        |        |       |        |
--------------------------------------------------------------------------------
| % of net sales                    |  27.3 |   26.8 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11) SHARE-SPECIFIC INDICATORS     | 12/20 | 12/200 |        |       |        |
|                                   |    08 |      7 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR           |  3.28 |   4.29 |        |       |        |
--------------------------------------------------------------------------------
| Equity per share, EUR             | 18.45 |  17.36 |        |       |        |
--------------------------------------------------------------------------------
| Dividend per share, EUR 1)        |  0.90 |   1.80 |        |       |        |
--------------------------------------------------------------------------------
| Dividend to earnings ratio, %     |  27.4 |   42.0 |        |       |        |
--------------------------------------------------------------------------------
| Market capitalisation, EUR mill.  | 222.1 |  536.2 |        |       |        |
--------------------------------------------------------------------------------
| Share price at end of period, EUR | 13.05 |  31.50 |        |       |        |
--------------------------------------------------------------------------------
| Trading volume during period,     |       |        |        |       |        |
--------------------------------------------------------------------------------
| 1,000 shares                      | 3,185 |  5,204 |        |       |        |
--------------------------------------------------------------------------------
| Number of issued shares, 1,000    | 17,02 | 17,021 |        |       |        |
| shares                            |     1 |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Board of Directors' proposal   |       |        |        |       |        |
| to the AGM                        |       |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 12) GUARANTEES AND CONTINGENT LIABILITIES                   |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR mill. |       |       |       |  2008 |   2007 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Securities for own commitments            |        |        |       |        |
--------------------------------------------------------------------------------
| Property mortgages                |   1.5 |    3.1 |        |       |        |
--------------------------------------------------------------------------------
| Business mortgages                |  40.6 |   95.3 |        |       |        |
--------------------------------------------------------------------------------
| Bonds pledged as security         |   0.3 |    0.8 |        |       |        |
--------------------------------------------------------------------------------
| Deposits                          |   0.2 |    0.0 |        |       |        |
--------------------------------------------------------------------------------
| Total                             |  42.7 |   99.2 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Guarantees                        |       |        |        |       |        |
--------------------------------------------------------------------------------
| On behalf of affiliated companies |  49.1 |        |        |       |        |
--------------------------------------------------------------------------------
| On behalf of others               |  19.9 |    9.9 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minimum lease payments of         |       |        |        |       |        |
| irrevocable lease agreements      |       |        |        |       |        |
--------------------------------------------------------------------------------
| One year or less                  |   9.9 |    5.7 |        |       |        |
--------------------------------------------------------------------------------
| Over one year but no              |       |        |        |       |        |
--------------------------------------------------------------------------------
| more than five years              |  26.6 |   20.8 |        |       |        |
--------------------------------------------------------------------------------
| Over five years                   |  18.9 |   20.2 |        |       |        |
--------------------------------------------------------------------------------
| Total                             |  55.4 |   46.7 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase commitments of           |  13.2 |   11.3 |        |       |        |
| investments                       |       |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative contracts              |       |        |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Forward foreign exchange contracts        |        |        |       |        |
--------------------------------------------------------------------------------
| Nominal value                     |  81.2 |   54.6 |        |       |        |
--------------------------------------------------------------------------------
| Fair value                        |   5.1 |   -0.2 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate options, calls purchased    |        |        |       |        |
--------------------------------------------------------------------------------
| Nominal value                     |   1.4 |    3.5 |        |       |        |
--------------------------------------------------------------------------------
| Fair value                        |   0.0 |    0.0 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate options, puts written       |        |        |       |        |
--------------------------------------------------------------------------------
| Nominal value                     |   1.4 |    3.5 |        |       |        |
--------------------------------------------------------------------------------
| Fair value                        |   0.0 |   -0.1 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate swap contracts              |        |        |       |        |
--------------------------------------------------------------------------------
| Nominal value                     |  71.9 |   95.6 |        |       |        |
--------------------------------------------------------------------------------
| Fair value                        |  -2.7 |   -0.5 |        |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The fair value of contracts is the gain or loss arising from        |        |
| closure                                                             |        |
--------------------------------------------------------------------------------
| of the contract based on the market price on the accounting date.   |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

13) LITIGATION                                                                  

The arbitral tribunal decided that IKEA's termination in spring 2006 of the     
construction contract for the MEGA shopping centre in St. Petersburg was not    
justified. Lemminkäinen has received the payment form IKEA due to the           
termination of a construction contract. The parties have agreed not to disclose 
the amount of the payment.                                                      

The Market Court ordered Lemminkäinen to pay an infringement fine of EUR 14     
million for contravening competition law in connection with its asphalt paving  
operations in Finland. The infringement fine was recognised as an expense in the
fourth quarter of 2007. The decision has been appealed to the Supreme           
Administrative Court, so the total amount of the fine may change.               

Lemminkäinen has been informed of an application for a summons in which the     
Finnish Road Administration is demanding compensatory damages from different    
asphalt companies before the Helsinki District Court. Lemminkäinen's share of   
the claimed compensation is at most EUR 10.5 million. The Finnish Road          
Administration is also seeking damages of at most EUR 5.6 million from          
Lemminkäinen, under joint and several liabilities with other defendant          
companies.