Juha Vättö 05.11.2015 CONSTRUCTION IN RUSSIA

Juha Vättö 05.11.2015 CONSTRUCTION IN RUSSIA

AINO 13-storey comfort-plus class residential estate on Vasily Island The first stage was commissioned in Dec. 2013, the last three sections are planned to be commissioned in Dec. 2014 Housing 35 000 m² Commercial premises 2 200 m² Parking for 156 cars 435 flats from 46 to 156 m² 13 floors, 6 sections 1. stage ready 12/ 2013 2. stage ready 12/ 2014 2 09.11.2015 Lemminkäinen in Russia 2014

TAPIOLA Tapiola is our residential project of comfort-business class along the Obvodny Canal in the Admiralteisky district of St. Petersburg. Construction and sales have already started. Comfort-business class 12 sections, 7-14 floors, 757 apartments 24 commercial premises on the first floor Underground parking for 360 cars A kindergarten for 80 children Tapiola will be built in 2 stages: the first one will be completed by the end of 2014, the second by the end of 2015 3 09.11.2015 Lemminkäinen in Russia 2014

ILMATAR Ilmatar is our large residential construction project on Vasily Island of comfort class Planned start up in 2014, to be commissioned in 2018 (last turn) Housing 140 000 m² Commercial premises 20 000 m² Parking for 2200 cars About 2 000 flats from 35 to 180 m² 4 09.11.2015 Lemminkäinen in Russia 2014

ISTRA Location: The city of Istra in the Moscow region A new and popular district Land plot area of 29 ha Project schedule: Construction was started in autumn 2013 The entire project is estimated to be completed in autumn 2016 5 09.11.2015 Lemminkäinen in Russia 2014

ISTRA Period: 11/2013-12/2014 Landplot area: 29,1 ha 46 buidings, 3-storey Appartments, 129 940 sq.m. (economic +) Administrative complex, 1 500 sq.m. Kindergarten for 125 children Utilities and area works 6 09.11.2015 Lemminkäinen in Russia 2014

PERUSTIETOA VENÄJÄSTÄ ASUKKAITA N 140 MILJOONAA 15 MILJOONAKAUPUNKIA ASUKKAIDEN KESKI-IKÄ: MIEHET 37 VUOTTA NAISET 42 VUOTTA ASUKKAIDEN ELINIKÄENNUSTE: MIEHET 65 VUOTTA NAISET 76 VUOTTA KESKIPALKKA 38 000 RUPLAA, PIETARI 43 500 RUPLAA JA MOSKOVA 65 000 RUPLAA ELÄKE 12 100 RUPLAA 7 09.11.2015 Lemminkäinen in Russia 2014

VENÄJÄN TALOUS BKT 24.800 USD ( VRT SAKSA 45.900 USD ) VENÄJÄ ON MAAILMAN N 10. SUURIN TALOUS (BRASILIA JA KANADA ) BKT LASKEE TÄNÄ VUONNA NOIN 3,9% REAALIPALKKA 7,7 % INFLAATIO 12,2 % 8 09.11.2015 Lemminkäinen in Russia 2014

% to previous year Economic activity Gross domestic / regional product 115,0 113,1 110,0 105,0 100,0 107,1 107,2 108,5 106,4 108,3 108,2 108,5 105,2 109,3 108,3 105,5 104,5 104,3 104,3 103,4 101,8 101,3 101,7 100,6 99,0 101,1 100,7 101,9 102,0 101,9 102,4 95,0 94,3 96,1 90,0 92,2 85,0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Forecast Russia GDP St-Petersburg GRP According to preliminary estimates of the Federal State Statistics Service, Russia's GDP dropped by 3.4% in H1 2015, compared with H1 2014 9 Source RosStat, PetroStat, Economic Development Ministry of Russia, Committee on economic policy and Strategic Planning of St. Petersburg

% to previous year Economic activity 120,0 Index of industrial production 115,0 110,0 105,0 113,7 108,0 105,1 105,7 106,3 110,1 106,8 107,8 107,3 103,6 105,0 114,6 104,7 100,4 101,7 101,5 102,0 102,2 100,0 95,0 98 100,6 103,4 99,6 96,6 95,0 101,5 101,6 101,9 90,0 89,3 91,8 85,0 83,4 80,0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Index of industrial production in Jan-Sep 2015 (compared to same period of 2014): Russia 96,8% St-Petersburg 91,1% Russia St-Petersburg Forecast 10 Source RosStat, PetroStat, Economic Development Ministry of Russia, Committee on economic policy and Strategic Planning of St. Petersburg

% to previous year Economic activity Real income 110 108,0 105 100 95 102,4 103,0 105,9 100,5 104,6 104,0 99,2 103,8 96,0 100,5 99,5 102,4 101,8 101,6 101,9 90 92,2 85 80 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Forecast St-Petersburg Russia Real income (preliminary results) in Jan-Aug 2015 compared to the same period of last year: Russia 96,9% St-Petersburg 91,0% Source RosStat, PetroStat, Economic Development Ministry of Russia, Committee on economic policy and Strategic Planning of St. Petersburg 11

thousand sq.m Housing construction market in St.Petersburg Housing construction commissioning 3500 3000 2500 2000 1 758 2 032 2 273 2 376 2 637 3 212 2 603 2 656 2 705 2 577 2 584 3 261 2 700 1 942 2 900 3 000 3 200 1500 1000 1 081 1 118 1 214 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Actual Jan-Sep 2015 Forecast About 1,9 mln. sq.m commissioned in 2015 (Jan-Sep), 72% of plan in 2015 Growth made about 10% compared to the same period of 2014 Source Construction Committee, Consulting agency «Peterburgskaya nedvigimost», own estimation 12

Competitors rating 1H 2015 20% 18% 16% 14% 18% Construction companies rating in commissioning (%-sq.m, Jan-Sep 2015) 12% 11% 10% 8% 6% 4% 2% 8% 6% 5% 4% 4% 4% 3% 3% 3% 2% 2% 2% 2% 1% 1% 1% 1% 0% The market leader in commissioning is LSR Group Source GosKomStat, Consulting agency «Peterburgskaya nedvigimost» 13

mln. sq.m Housing construction market in St.Petersburg New housing construction (start up) 6,0 5,0 5,0 5,6 4,3 Start-up structure by territory, Jan-Sep 2015 (%-sq.m) 4,0 3,0 2,0 1,0 2,4 2,8 1,9 1,2 2,6 2,2 1,0 1,8 2,6 3,4 3,4 Suburbs 44 % St- Petersburg 56 % 0,0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Forecast Start-up structure by classes, Jan-Sep 2015 (%-sq.m) Business 6 % Elite 2 % 3,4 mln. sq.m appeared on the market in 2015 (Jan-Sep) -16% compared to the same period of 2014 Comfort 28 % Economy 64 % * Including suburbs 14 Source Consulting agency «Peterburgskaya nedvigimost», own estimation

Competitors rating 1H 2015 Construction companies rating in start up (%-sq.m, Jan-Sep 2015) 16% 15% 15% 14% 12% 10% 8% 6% 4% 2% 5% 5% 5% 4% 4% 4% 3% 3% 2% 2% 2% 2% 2% 2% 0% The leaders are LSR Group, Setl city Source GosKomStat, Consulting agency «Peterburgskaya nedvigimost» 15

thousand RUB Housing construction market in St.Petersburg 350 300 250 231,1 236,7 235,1 250,3 258,2 257,6 253 Price dynamics by classes of housing 260,8267,3 264,8 263,4265,6 290,6 300,8 302,4 304,8 302,9 305,7 303,9 306,0 304,8 307,5 200 150 100 50 144,5 145,6 148,1 147,2 148,3 148,6 149,1 150 151,2151 152,5 154,2 159,1 163,6 161,9 161,9 166,4 169,6 168,9 168,8 167,5 168,0 102,3 103,4 105,1 107 108,6 109 110 111,3 112,4 111,9 113 112,8 116,9 120,7 120,6 119,6 119,6 119,8 120,0 121,0 122,1 121,5 76,9 77,8 78,4 78,7 79 78,4 79,4 78,7 79,5 80,3 81 82,7 85,6 87 87,3 87,1 87,5 87,6 87,9 87,8 87,2 86,5 0 Price change in 2015(Jan-Sep) made: Econom + 1% Comfort +4% Business +6 % Elite +6% * Preliminary figures Source Consulting agency «Peterburgskaya nedvigimost» Econom Comfort Business Elite 16

the number of mortgage contracts milliard RUB Mortgage market 44 000 40 000 36 000 Mortgage market in Saint-Petersburg 94,5 41 134 100,0 90,0 80,0 32 000 65,1 70,0 28 000 24 000 20 000 16 000 12 000 8 000 4 000 0 58,0 29 000 50,5 28 048 35,5 34,1 21 722 12 679 14,0 6,0 15 375 6 569 3 051 2008 2009 2010 2011 2012 2013 2014 2015 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Forecast Contract, pcs. Contracts, billion RUB According to Central bank 19 367 mortgage credits were given in Jan-Aug 2015 (39,4 billion in RUB value). Decrease made 24% in pieces and 33% in RUB (compared to Jan-Aug 2014) Average sum of credit 2 mln.rub in Jan-Aug 2015 against 2,3mln.RUB in Jan-Aug 2014 Source Central bank of RF, Consulting agency «Peterburgskaya nedvigimost» 17

billion RUB Mortgage in St.Petersburg Market leaders 14,0 13,2-28% 12,0 10,0 +187% 9,5 +56% 8,3 8,0 6,0-42% -2% 3Q 2014 3Q 2015 +23% 4,8 4,4 4,3 4,0 +59% +24% 2,0 0,0 Sberbank VTB 24 Saint-Petersburg Source Banki.ru 18

Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 % Mortgage market 17,0 Average rate of interest (Saint-Petersburg) 16,0 15,8 15,0 14,0 15,0 14,3 14,2 14,0 13,9 13,7 13,0 12,0 12,3 12,3 12,4 12,4 12,5 13,1 11,0 10,0 Decrease of average rate in 2015 due to reduction of key rate by Central Bank of RF and State program of mortgage support 19

TONTIT TONTTEJA HANKITAAN LÄHINNÄ HUUTOKAUPOISTA TAI YKSITYISILTÄ OMISTAJILTA SUORAAN TONTTIEN KAAVASTATUKSELLA ON PÄÄMERKITYS, MILLOIN PÄÄSET RAKENTAMAAN RAKENTAMISEN EDELLYTYS ON, ETTÄ SINULLA ON TONTILLA NIIN SANOTTU HYVÄKSYTTY GRADPLAN GRADPLANIN SAANTI KESTÄÄ VUODESTA ETEENPÄIN, AIKAAN VAIKUTTAA OLENNAISESTI SIJAINTI, VIRANOMAISTEN TOIMINTA ( POLITIIKKA, MUSEOVIRASTO YM ), INFRAN SAANTI YLEENSÄ SUURIN ONGELMA ON INFRA ELI TEKNISET EHDOT JA MUSEOVIRASTO 20 09.11.2015 Lemminkäinen in Russia 2014

RAKENNUSLUPA RAKENNUSLUVAN MERKITYS ON SAMA NIIN SUOMESSA KUIN VENÄJÄLLÄKIN RAKENNUSLUVAN SAANTIPROSESSI VIE VENÄJÄLLÄ AIKAA 6 KUUKAUDESTA PARIIN KOLMEEN VUOTEEN, RIIPPUEN KAAVATILANTEESTA LUPIEN SAANTI ON HELPOMPAA KAUPALLISISSA PROJEKTEISSA, JOITA EI SÄÄTELE RASKAS ASUNTOTUOTANNON NORMITUS RAKENNUSLUPAA VARTEN PROSESSISSA TARVITAAN NOIN 150 ERILAISTA LAUSUNTOA TAI LUPAA, JOISTAIN VIRASTOISTA USEAAN KERTAAN ERI VAIHEISSA RAKENNUSPROSESSISSA ON VIRANOMAISIIN NÄHDEN YLI 400 ERILAISTA LUPAA JA LAUSUNTOA 21 09.11.2015 Lemminkäinen in Russia 2014

NORMIT RAKENTAMISESSA VENÄJÄLLÄ PUHUMME AINA ERILAISISTA NORMEISTA NORMEJA ON KAHDENLAISIA: VALTAKUNNALLISIA JA PAIKALLISIA ASUNTORAKENTAMISEN NORMITUS ON HANKALA JA OSIN NEUVOSTOLIITON AIKAINEN ESIMERKKEJÄ YHÄ EDELLEEN VOIMASSAOLEVISTA: EI SAA OLLA LATTIAKAIVOJA ASUNTOJEN MÄRKÄTILOISSA INSOLLAATIO ELI AURINGONVALONORMI VAATII SEN, ETTÄ JOKAISEEN ASUNTOON ON PAISTETTAVA AURINKO MUUTAMAN TUNNIN PÄIVÄSSÄ VENÄLÄISTEN SUUNNITTELIJOIDEN SUUNNITTELEMISSA TALOISSA ON TEHOKKUUS NOIN 60%, KUN MEILLÄ ESIM LEMMINKÄISELLÄ ON TEHOKKUUS JO TASOA 80 85% 22 09.11.2015 Lemminkäinen in Russia 2014

Building Construction Infrastructure Construction St. Petersburg, Moscow, Kaluga, Project Exports in Russia www.lemminkainen.ru 23 09.11.2015 Lemminkäinen in Russia 2014