Sergey Spetnitsky: Implementation of an investment project in Russia. European Standards & Practises for Japanese companies

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1 Sergey Spetnitsky: Implementation of an investment project in Russia European Standards & Practises for Japanese companies

2 Welcome to European part of Russia ---That is, Russian part of Europe!

3 Who are we?

4 Who are we? We are a major European building and infrastructure construction company founded 1910 in Finland. Our main market area is Northern Europe. In Russia we have been active for more than 40 years. Our net sales in 2014 were EUR 2.0 billion. We employ on average 5,600 construction professionals

5 What do we offer?

6 What do we offer? We create conditions that make living, working and travelling functional, safe and healthy. We build homes in Finland and Russia. We offer contracting services in major infrastructure objects in Northern Europe. We develop an industrial park in Kaluga, central part of Russia

7 What did we learn in 100 years?

8 What did we learn in 100 years? Sustainable growth Respect and trust Constructive cooperation

9 European model of an industrial park

10 Implemented in Russia

11 Better risk management St. Petersburg Kaluga Moscow Easily accessible from highway M3 Any size of land plots up to 100 ha available Guaranteed infra and utilities existing already

12 Good neighbourhood Rani Plast first investor already runs ecologically clean production Major European car and tyre manufacturers chose the same locality Vorotynsk with inhabitants offers growth potential

13 How do we make it happen? 1910 Asfalttiosakeyhtiö Lemminkäinen is established 1970 Our construction export business begins, initially in the Soviet Union and Africa 1975 Lemminkäinen acquires a majority interest in Oy Alfred A. Palmberg, a building construction group 2008 Group restructured 2010 All group companies brought under the Lemminkäinen brand, roofing business divested Concrete products discontinued 1950 A prefabricated staircase unit factory is opened We lead the market in the paving business 2000 Acquisition of Tekmanni Oy, a technical building service company 1995 Lemminkäinen is quoted on the Helsinki Stock Exchange 2011 Increase in paving contracts in Norway with Mesta Industry deal 2014 New business segments

14 First: making the decisions Experience in investment agreements with regional authorities. We are able to offer services in procurement of design and permits. We help in calculation of cost estimates of the investment

15 Second: building the facilities Experience in most contract forms. No binding obligations to use any of our services. All utilities delivered on time with minimized risks

16 Third: starting the production Experience in commissioning of a wide range of technologies. We take part in the inauguration to ensure a successful start. All paperwork done accurately and on time

17 European standards

18 European practises

19

20 Building & Real Estate Infra & Paving Saint Petersburg, Moscow, Kaluga Лемминкяйнен в России, 2014

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