NCC Finland Annual Report 2001

ANNUAL REPORT 2001

EXPECT A BIT MORE

1 CONTENTS

NCC’s Values 4 President’s Review 5

VOITTO NIEMELÄ NCC in Brief 6 VOITTO NIEMELÄ NCC Finland Oy in Brief 6 Board of Directors, Corporate Management and Auditors 8 Organisation 1. 1. 2002 9 Developing NCC 10 Review of Divisions - Building Construction 12 In the extension to Meilahti hospital, the most modern hospital technology in Europe was used. - Housing 17 - Property Develoment 21 - Industry 22 - International Operations 22 - Civil Engineering 22 - Telecom 23 Service Units 23 Business Development 23 Optiplan Oy 23 Report for the 1.1. - 31.12.2001 accounting period 25

- Income Statements 27 The Finnish Institute of Occupational Health building was The Finnish National Theatre in Helsinki city centre - Balance Sheets 28 a model of how a building site should be run. The client, was a demanding renovation job. - Statements of Source and Application Senaatti-kiinteistöt, chose it as the Building Project of the Year. of funds 29 Accounting Conventions 30

JOUNI SAARISTO Notes to the Financial Statements 31 JOUNI SAARISTO The Board’s Proposal for Action Arising from the Profit/loss for the Year 41 Auditor’s Note 41 Auditor’s Report 41 Addresses 42

Mylly in Raisio is the longest shopping centre The characteristic natural motif of Mylly is repeated in in Finland. the decor, including the glazed roof, floors and railings.

NCC Finland Oy’s annual report is published in Finnish and English. It can be ordered from the following address: NCC Finland Oy, Communications, Jönsaksentie 4, 01600 Vantaa, PEKKA AGARTH tel. +358- 9-5075 434, fax +358-9-5075 462.

Website: www.ncc.fi

The paper has been certified for the Nordic Swan Environmental Label.

NCC Finland Oy, Communications and Financial Services. SaniFani in Kalajoki was extended to make it one of NCC Finland’s industrial business areas are asphalt, Printed by Erweko Painotuote Oy, 2002. Finland biggest leisure spas. ready-mix concrete and aggregate.

2 CONSTRUCTIVELY NCC

MIKAEL LINDEN

Kirkkonummi swimming pool is The design of the Libri High Tech Logistics Center in Opus Business Park is rising close to Herttoniemi a sports centre, with controls that are Vantaa was a model job in its environmental aspects. metro station, a central location. right on the button.

VOITTO NIEMELÄ

The extension to Nokia’s head office in the Keilaniemi district of Espoo was architecturally a challenging task.

VOITTO NIEMELÄ

JOUNI SAARISTO

VOITTO NIEMELÄ

Mylly is popular with its customers. For Nokia NCC has built many business facilities and buildings in different parts of Finland. An extension is planned. One of the items completed in 2001 was the Kampa building in Salo.

TIMO VESTERINEN

NCC International has renovated homes Kotka deep-water terminal was a major The Citymarket department store in Lohja in Tallinn, Estonia and Riga, Latvia. contract lasting several years. was built in record time.

3 NCC’S VALUES

Values have been set in the NCC Group to guide our actions. The fundamental values are integri- ty, respect and trust. The operational values are responsibility, simplicity and focus.

Responsibility Building the environments of the future entails a major responsibility. Responsible enterprise creates value for customers and enables us to meet the financial expectations of our owners.

Simplicity Simplicity means minimising all forms of bureaucracy that restrict the business and do not generate added value for our customers. Simple, straightforward solutions boost our efficiency. Doing business with NCC must be as simple as possible.

Focus Focusing on a successful business approach means assigning priority to profitability rather than volume. Our competitive edge is developed in close cooperation with Ask questions and listen. Everything begins with the customer. customers. Our main focus is to devote all our time and resources to satisfying our customers’ needs in the best possible manner.

All NCC employees bear indi- vidual responsibility for what they “Expect a bit more.” The aim of do and promise. For the custom- the NCC Group’s values is to ers, value-based actions take the enhance customer service in such form of improved operational a way that customers can expect a quality. The deployment of the bit more from us. As a developer values continues with the aim of and builder of future housing en- having all NCC personnel intern- vironments. we have a great re- alise them and act in accordance sponsibility. Together with our cus- with them. tomers, we expand and develop expertise and competitive edge. With the value of responsibility we create added value for the customer and are able to meet the financial requirements of the owners. For business to be successful, it is a requirement that profitability is more important than increasing volumes. The goal is to utilise our time and our resources in such a way that we are able to solve our customers’ problems in the best possible way.

4 PRESIDENT’S REVIEW

For companies in building con- and the environment. The EKO

struction, 2001 was a twin-track PASI HYTTI concept was used e.g. in the de- year. Demand for business pre- sign of the first privately-financed mises plunged in the late spring school in Finland. Responsibility and this had an immediate impact for design, building, maintenance on demand for leased premises, and renovation and rendering of requests for tenders later in the services related to the project is year, and builders’ order books. borne by the project company At the same time, public con- founded by NCC, ABB and So- struction grew and helped to patch dexho for 27 years. Safety on build- over the downturn in the market ing sites was improved by devel- of business premises. Housing oping the safety observation meth- continued to be buoyant, but from od in building construction and the nationwide viewpoint it fell curring items booked as a result than 300, of which 125 dwellings by spotlighting preventive action. well short of the amount of hous- of the reorganisation that came were in the Helsinki Metropolitan ing construction in 2000. Sales of into effect at the beginning of the Area. However, lively demand in In order to develop the con- privately financed homes were at year exerted a drag on profits, as the beginning of 2002 rapidly ran struction and real estate business, their briskest after the summer did changes in the entry proce- down reserves of housing. Dur- the main organisations and cor- and demand has continued to be dures, which gave rise to a decline ing the present year, regional con- porations worked on the course high in the beginning of 2002. in earnings amounting to approxi- solidation and migration to the of progress in the combined will Regional differences are consider- mately MEUR 3.3. The costs of centres of growth continue and of the cluster and proclaimed the able, however. winding up Civil Engineering and are keeping up demand on the principal global trends. The re- its losses were MEUR 4.7. In ad- housing markets in the centres of sulting publication, Vision 2010, For the NCC Group, the past dition, a large-scale Group reor- growth. The excellent portfolio was issued by the cluster in the year was a time of dynamic change ganisation at the beginning of the of plots in good locations com- spring and creates a foundation – of concentrating on the essen- financial year and its related cor- bined with the NCC TähtiKoti on which we can build the con- tials. Under the new company porate transactions also exerted a product, which has attributes ful- cepts for future success. President, a turnaround project drag on profits. filling the different needs of cus- was launched with the aim of tomers, make it possible to in- I would like to express my boosting the Group’s profitability. Building Construction in Fin- crease the number of privately thanks to our customers, our busi- The organisational structure was land was still a strong and profit- financed housing starts this year. ness partners and our own per- lightened and unprofitable opera- able business. A preponderance Regional Building’s net profit was sonnel for the past year and to tions were wound up. NCC Fin- of deals on housing and other reduced by poor profitability in wish us all success in the years land Oy’s new business areas as of properties in the later stages of Eastern and Southeast Finland, ahead. 1 January 2002 are Contracting, construction postponed the book- but remedial action has been initi- Property Development, NCC ing of profits, enlarged the bal- ated. International operations Roads, and the construction plant ance sheet and caused a deteriora- posted a net loss as a result of hire specialist NCC Altima. It is tion of the key indicators. Office inadequate volume. Nevertheless, intended to spin the business ar- construction and renovation in the the prospects are good, particu- eas off as separate companies in Helsinki Metropolitan Area ex- larly in the Baltic states. autumn 2002. Civil Engineering ceeded its targets. Property De- and Telecom were closed down in velopment fell well short of its In the beginning of 2002, two Timo U. Korhonen Finland. The organisation for earnings target, because sales of new profit centres were founded building construction and residen- properties were delayed due to a in the Helsinki Metropolitan Area, tial building was delayered, and slow increase in capacity utilisa- one of which will concentrate on geographically Finland was divid- tion rates. Construction work was project management contracting ed into the Helsinki Metropolitan under way on NCC Business Parks and the other on renovations and Area and five regional organisa- projects in the Vantaa Airport City maintenance services, handling tions. The objective of the reor- district, the Herttoniemi district small-scale contracting, annual ganisations is to enhance custom- of Helsinki, and in Tampere and agreement contracting, and builder service and to speed up deci- Oulu. Although the time it takes ing servicing and maintenance. sion-making. NCC Finland will to lease out business premises has The priorities for Business Devel- concentrate in the future on its increased, booking levels for busi- opment were to expand customer areas of excellence, housing and ness parks have risen steadily. The value-added and to improve prof- other building construction. Housing business unit posted a itability. We are continuing to de- moderate net profit. Large, pri- velop the EKO concept by which NCC Finland’s turnover in vately financed projects complet- we are able to assess the capital 2001 was MEUR 628.8. Profit ed towards the end of the year costs of construction projects as before appropriations and taxes increased the number of unsold well as the effect of design and was poor at MEUR 6.4. Nonre- housing units nationwide to more material choices on life-cycle costs

5 NCC IN BRIEF NCC FINLAND OY IN BRIEF

NCC FINLAND OY eas were wound up at the end of the year and operations were re- NCC Finland Oy’s turnover in organised so that the new busi- 2001 was MEUR 628.8 and it had ness areas are NCC Contracting, an average of 2,500 employees. NCC Property Development, NCC Norway NCC Finland The company’s market region is NCC Roads, and Altima, which NCC Finland, the Baltic states and Rus- specialises in plant hire. The company’s customers are people who NCC Denmark sia. Its business sectors in 2001 were Property Development, need homes, service and business NCC Poland Housing, Building Construction, facilities, companies and associa- NCC Germany Civil Engineering, International tions needing commercial and Operations, Industry and Tele- trading facilities, and companies com. Of these, the Civil Engi- and public bodies needing social neering and Telecom business ar- infrastructure services. The NCC Group’s home market comprises Sweden, Finland, Norway and Denmark.

THE NCC GROUP

NCC, Nordic Construction Com- pany, is one of the leading construction and real estate companies in the Nordic region. Its turnover in 2001 was approximately SEK 46 billion and it had approximately 27,000 employees. TURNOVER, ORDERS IN HAND AND PERSONNEL OF NCC builds homes, offices CONSTRUCTION UNITS and other buildings, roads and industrial facilities, and infrastruc- Turnover net Uninvoiced Personnel ture for telecom applications. of share sales orders year-end NCC manufactures building ma- (MEUR) (MEUR) terials and it is one of the biggest producers of aggregate, asphalt Building Construction 111 81 210 and ready-mix concrete in the Housing Construction 171 82 561 Nordic region. In selected mar- Regions 219 88 987 kets outside the Nordic region it Civil Engineering 18 4 70 takes part in large, technically de- International Operations 11 14 29 manding civil engineering Total 530 269 1857 projects. As a property developer, NCC specialises in developing, leasing and selling real estate projects. NCC also hires out construction plant. BREAKDOWN OF TURNOVER BY NCC’s vision is that the cus- DIVISION tomer can expect a bit more from Industry it as a developer and creator of International 8% Property Development Operations tomorrow’s jobs, homes and in- 5% 2% frastructure. NCC is an innova- Civil Engineering tive company, whose key values Housing 28% 3% are focus, responsibility and simplicity.

NCC AB shares are listed on Regions 36% Stockholm Stock Exchange. It will Building 18% publish its interim reports for 2002 on 3 May, 21 August and 4 November 2002.

6 TURNOVER 2001 2000 1999 1998 1997 PERSONNEL 31.12. (MEUR) 628.8 592.5 600 CONSOLIDATED INCOME STATEMENTS (MEUR)

483.3 2,000 Turnover 628.8 592.5 483.3 411.4 341.7

1,086

411.4 1,005 400 Operating profit 14.0 29.5 15.9 2.8 2.8 341.7 923 Net financing expenses -7.6 -3.0 -0.8 -0.8 0.0 804

692 Profit before appropriations 1,000

200 and taxes 6.4 26.5 15.2 2.1 2.8

1,215

1,341

1,431

1,069 CONSOLIDATED BALANCE SHEETS (MEUR) 1,144

-97 -98 -99 -00 -01 -97 -98 -99 -00 -01 Assets waged staff salaried staff Finland Exports Sale of shares Fixed assets 56.5 53.1 19.3 17.5 16.1 Inventory 196.7 187.5 91.1 59.9 32.2 Financial assets 137.0 107.8 75.8 63.1 43.7

Liabilities and shareholders’ equity Shareholders’ equity 84.8 80.0 47.2 24.9 23.8 Obligatory reserves 6.3 3.2 3.2 2.2 1.6 Liabilities Interest-bearing 171.0 109.2 46.9 25.3 10.6 Non-interest-bearing 128.0 156.0 88.9 88.0 55.9 UNINVOICED ORDERS DWELLINGS BUILT (MEUR) Balance sheet total 390.2 348.4 186.2 140.4 91.9 (number) 334 KEY INDICATORS 272 269 300 240 Return on equity

2,883 (ROE) 5.2 29.1 31.3 4.6 7.9 2,773

2,577

2,556

2,526 173 200 2,502 Return on investment 2,406

2,277

2,294 (ROI) 6.7 21.3 23.0 7.3 10.7 2,187 2,000 100 Quick ratio 0.5 0.5 0.7 0.6 0.8 Equity ratio, % 22.9 24.7 28.4 19.6 30.2 Uninvoiced orders 1,000 -97 -98 -99 -00 -01 at year-end, MEUR 269 334 272 240 173 Average personnel 2,513 2,476 2,066 1,974 1,653

-97 -98 -99 -00 -01

FORMULAS FOR THE KEY INDICATORS Completed Started Return on equity (ROE): during year during year Profit before extraordinary items and appropriations - taxes Shareholders’ equity + minority interest (average for year) CONSTRUCTION UNITS’ Return on investment (ROI): FORMS OF IMPLEMENTATION Profit before extraordinary items, appropriations and taxes + interest expenses and other financial expenses Spec Contracting Balance sheet total - non-interest-bearing debts 31% Competitive (average for year) Contracting 29% Quick ratio: Financial assets Current liabilities - advanced payments Equity ratio: Shareholders’ equity + minority interst Balance sheet total - advanced payments

Project Manage- Partnership and ment Contracting negotiated 8% Contracting 32%

7 BOARD OF DIRECTORS, CORPORATE MANAGEMENT AND AUDITORS

NCC FINLAND OY’S In addition: BOARD OF DIRECTORS Jorma Ahokas, Property Development Until 12 March 2001 Kauko Wasenius, Building Construc- Lars Wuopio, chairman tion, Helsinki Metropolitan Area Matti Ulf Juha Korkiamäki, Housing, Helsinki Matti Haapala Haapala Wallin Kai Hietarinta Metropolitan Area Magnus Mannesson Tuomo Äyräväinen, Southern Finland Markku Markkola Mauri Varjonen, Southwest Kenneth Orrgren Finland Pentti Kuvaja, Western Finland After 12 March 2001 Timo U. Jukka Korhonen Lahtinen Juhani Väisänen, Eastern Finland Ulf Wallin, chairman Juhani Rastas, Northern Finland Matti Haapala CORPORATE MANAGEMENT Pekka Entelä, NCC International Oy Jukka Lahtinen Matti Leino, Optiplan Oy Matti Haapala, M.Sc. (Eng., Econ.) Olli Kokkonen, NCC Roads After 1 August 2001 served as the company’s President Timo Toivanen, Altima Matti Haapala, chairman until 31 July 2001, when he was Mika Soini, Business Development Ulf Wallin succeeded by Timo U. Korhonen, Heikki Miettinen, Housing Timo U. Korhonen M.Sc. (Eng.). Jukka Lahtinen, M.Sc. Development Jukka Lahtinen (Econ.) is the Executive Vice Presi- Markku Hainari, Housing, Key dent. Account Customers, site acquisition Kari Korpela served as secretary Ritva Norrgrann, Corporate to the Board of Directors. Communications

THE AUDITORS OF NCC FINLAND OY

The auditor of NCC Finland Oy is KPMG Wideri Oy Ab, with Jorma Kauko Juha Tuomo Mauri Birger Haglund, APA, M.Sc. Ahokas Wasenius Korkiamäki Äyräväinen Varjonen (Econ.) as the auditor in charge.

Pentti Juhani Juhani Pekka Kuvaja Väisänen Rastas Entelä

Matti Olli Timo Leino Kokkonen Toivanen

Mika Heikki Markku Ritva Interaction as a basic plank of Soini Miettinen Hainari Norrgrann management.

8 ORGANISATION 1. 1. 2002

NCC FINLAND OY STRUCTURE

President Timo U. Korhonen

Internal Services Building Design Development Optiplan Oy Vice president Housing Business Jukka Lahtinen Matti Leino Heikki Miettinen Mika Soini

Property Contracting, Housing, Uusimaa, Southwest Western Eastern Northern International NCC Roads Altima Development Helsinki Area Helsinki Area Southern Finland Finland Finland Finland Operations Häme NCC Inter- Jorma Kauko Juha Mauri Pentti Juhani Juhani national Oy Olli Timo Ahokas Wasenius Korkiamäki Tuomo Varjonen Kuvaja Väisänen Rastas Kokkonen Toivanen Äyräväinen Pekka Products: - Office and - Southern; - Turku - Tampere - Lahti - Oulu Entelä - Asphalting - Machinery - Offices Commercial Helsinki and - Lohja - Ready- - Business Construction Espoo - Jyväskylä - Lappeen- Russia Mixed Parks - Design & Build - Hämeen- ranta, - Moscow Concrete - Shopping - Renovation - Northern; linna - Vaasa Kotka - St Petersburg - Stone Centres - Building Vantaa Cruching - Hotels Maintenance - Kuopio Baltic States - Logistics- - Estonia Parks - Joensuu - Latvia - Lithuania

DIVISIONS

Contracting and Property NCC Roads Altima Housing Development

DIVISIONS OF THE NCC GROUP

Contracting and Property NCC Roads Altima NCC International Housing Development Projects

Sweden Finland Denmark Norway Germany

9 DEVELOPING NCC

NCC Finland provides BUSINESS DEVELOPMENT opened and integrated with the Among the priorities in opera- materials of the operating sys- products and services that tional development were the main tem, the next development stage meet the customers’ expec- business idea processes, project of which will be a graphical inter- management, purchasing, and lo- face. tations, competitively and gistics. During the year, on the In environmental work, the basis of a partnership agreement main thrust was on boosting skill profitably. This demands made with Kesko, the efficiency levels and converting them into the ability to listen to the of hardware purchases and on- added value for the customers, site material logistics were im- which may be done by means of customer and to update proved. 2001 was a year of quali- the EKO concept, EKO assess- operating methods. The ty, with the themes of management and the environmental re- ment and attitude, skills and per- quirements for the TähtiKoti intention behind NCC’s formance, and streamlining pro- housing product. The Eastern development work is to cesses. In order to improve the Finland regional unit was award- product’s completion level, man- ed ISO 14001 certification. Work enhance operations, pro- agement finishing reviews were began in construction activities ducts and services so that started, in which the corporate on cutting down on the use of management assessed the quality materials classified as harmful by they correspond to the of items handed over to custom- NCC. ers. On this basis, rapid action on In developing project man- customer’s expectations quality improvement was agement, the primary emphasis and support the attain- launched in the units. Notice was on time management and on boards were brought out to build- using feedback with greater effi- ment of the company’s ing sites, showing the elements ciency. NCC took part in projects strategic goals. Among the of making quality, environmental by Tekes, the National Technolo- issues and safety requirements. gy Agency, to build IT time plan- major subjects are mana- The accuracy of quality informa- ning and intelligent scheduling gement of data and mate- tion was also emphasised. To un- software. derpin skills, training packages The attributes of the housing rial flows, enhancement of for timetables, job control and product NCC TähtiKoti were customer relations, new work site completion were drawn specified. Tools were developed as up, and these were gone through a basis for designing and market- products and services, and by all the building construction ing new housing, enabling cus- units. An upgrade of operating tomers’ needs and values to be productisation. systems was started off in the specified more accurately. With main core businesses by defining the aid of various financing mod- the requirements. Processes were els, the way was paved for custom-

AGE DISTRIBUTION DURATION OF STAFF EMPLOYMENT 400 1200

300 1000 800 200 600

400 100 200

under 25 26-35 36-45 46-55 over 56 The average age of under 5 6-20 over 21 salaried and waged staff Salaried staff Waged staff is 42.5 years. Salaried staff Waged staff

10 competitive tendering for projects collar employees were dealt with from various educational institu- such as the Kuninkaantie high by the nationwide consultative tions were utilised. school and swimming pool sched- committee. In the beginning of 2001, the uled to be built with private fi- employees’ occupational health nancing in Espoo. This is the first PERSONNEL care was extended to include treat- building construction project in DEVELOPMENT ment by general practitioners. The Finland in which a private party is In training, efforts were expend- employees’ physical fitness on the to bear responsibility according to ed particularly on management job was promoted with keep-fit prior agreement for the operating and customer service skills and programmes, and new forms of and maintenance costs of a public on job safety and quality. The early rehabilitation for groups building for as much as 25 years. company’s potential management were started, among them outpa- talent was coached with a large- tient rehabilitation. The pursuit DEVELOPING scale corporate management of hobbies continued to be vig- The EKO concept for life-cycle THE CORPORATE CULTURE course developed by NCC. Su- orous as the employees took ac- economy in construction that meets In autumn 2001, the Group val- pervisory and customer skill tive part in many different types environmental requirements. ues were defined and work began courses were started in the units of exercise. on getting them established. They along with extensive training on were based on extensive person- independent monitoring of job DEVELOPING nel interviews in different com- safety. Training leading to voca- INFORMATION panies. Team days were held in tional diplomas was stepped up TECHNOLOGY ers to become owner-occupiers the units, when the values were for both office and site staff. Preparations for the adoption of with a small capital input and low discussed, the units’ success fac- Training in IT and languages con- the euro continued throughout living costs, and also the majority tors were mapped out, and a basis tinued as in previous years. For the year. The financial adminis- of the NCC TähtiKoti homes were was created for better joint ac- production-side office staff, train- tration system was altered in Oc- offered broadband datacom links. tion. The result-oriented manage- ing was held in changes in the tober, followed by most of the The ‘Senior Home’ concept was ment system, which includes collective labour agreement and other systems at the end of the developed jointly with Keskustake- progress interviews, was in oper- the new labour contract law. The year. Standardisation of the PC, hitys Oy and projects got under ation. At an event held in summer practice of result-oriented man- network and server environment way in various parts of Finland. for personnel in the Helsinki Met- agement was boosted with made progress in collaboration During 2001, the EKO con- ropolitan Area, the NCC employ- progress interviews mapping out with the NCC Group, and we cept was proclaimed. Developed ees of the year were presented the personnel’s skills and produc- took part in preparations for an and used by NCC, this is an oper- with certificates and a cash prize. ing personal progress plans. Job EU project on product model- ating model for the design and The internal channels of com- counsellors trained by NCC at- ling. In benchmarking surveys car- construction for buildings meet- munication were weekly electron- tended to on-the-job sandwich ried out, it was found that NCC ing requirements for life-cycle ic bulletins, the staff magazine training for students from voca- Finland Oy’s data management economy and environmental stan- published eight times a year, and tional institutes, and a large num- functions had been performed dards. NCC has successfully ap- the intranet Starnet. The com- ber of apprentices were taken on. more cost-effectively than in the plied the EKO concept in the mon issues of blue- and white- Graduation pieces by students construction industry in general.

TABLE OF PROFESSIONAL EDUCATIONAL ACHIEVEMENT PERSONNEL DISTRIBUTION GROUPS DISTRIBUTION BY GENDER

Salaried Intermediate staff education 82% Women 12% Waged staff 19% 57% Men 88%

Technical office staff 8% University degree Senior office staff 13% 10% Other Elementary salaried staff education 6% 5% 11 REVIEW OF DIVISIONS

BUILDING CONSTRUCTION Building Construction, Among the major Helsinki Metropolitan Area projects were an exten- Demand for business pre- sion to Nokia’s head of- Construction was divided in the fice, which was handed mises slowed during the beginning of 2002 into four prof- over to the client in it centres: business premises con- summer 2001. The big- financial year and was tracting, D&B and project man- gest building site in the channelled more towards agement, renovations, and repairs Nordic region, the Lep- & maintenance services. Business pävaara commercial public building and to premises contracting is responsi- centre, got under way, housing. The main focus ble for competitive-tender con- and the start-up of the tracting and for property devel- privately financed part- for construction in Finland opment projects. Its Director is nership scheme to build in the next few years is in- Antti Toiviainen. Matti Aho is to Kuninkaantie high start as the Director in charge of school was clinched. creasingly in the Helsin- project management contracting, The biggest challenge An old building is worth repairing for ki Metropolitan Area. marketing negotiation on design for business premises construc- a useful life. & build and privately financed tion is to obtain a profitable back- As a result of this, the or- projects. The new repairs and log of work to replace property maintenance services will con- development projects. The eco- ganisation for building centrate in the future on small- nomic downturn, speculative fore- construction in the Helsin- scale contracting, annual agree- casts and intense competition are ment contracting, and on servic- making tendering extremely diffi- ki Metropolitan Area was ing and maintaining buildings. cult and challenging. The most expanded from the begin- Kari Talvitie started as its Direc- interesting development project end was larger than normal, be- tor. Armas Lattunen continues as was a three-day seminar under- ing MEUR 18.5. Work was done ning of 2002 so that its the Director of the renovation gone by all 80 salaried staff, un- on job safety, with the result that operations are divided unit. der the headings know yourself, the unit’s safety observation in- Development projects of from goals to results, and includ- dex rose to the high level of 88.9. among four profit centres. Building Construction included ing progress interviews. There was The most important and chal- Renovation work is ex- putting the operating system on no significant change in the num- lenging job of the financial year the net, replacing audits with site ber of personnel. was the renovation of the Finn- pected to grow to some ex- observation methods and intro- ish National Theatre. In view of ducing a new project estimating Renovation the conditions, the work went tent, concentrated in the system. Renovation achieved its targets well and kept to schedule, al- centres of growth. and it posted a good profit. The though numerous changes and Business premises year was filled with work, so new additions were made to the plans. Turnover from the construction employees were hired and effort The most significant new con- of business premises in the Hels- was deployed on training in par- tract was alterations and renova- inki Metropolitan Area was up by ticular. New jobs were booked to tions of the Pathology Unit for 25% on the previous year and the the tune of more than MEUR 30 the university. These will be done unit posted a good profit. and the uninvoiced work at year- in four stages.

Major projects completed in 2001: Business House Casa, 24,590 m3, Espoo Nokia Kampa office building, 84,400 m3, Housing Company Airistontähti, 90 flats, Greater Helsinki Area: Mannerheimintie 96, 43 flats, 17,930 m3, Salo 28,439 m3, Turku Plaza Business Park, Plaza Park, 28,000 m3, moist room repairs, window replacement. Kutomo Shopping Centre, 123,000 m3, Western Finland: Vantaa Kesko Tammisto, modification of business Forssa Finlayson, industrial building, renovation of Grani Shopping Centre, 29,000 m3, premises, 39,900 m3, Vantaa Real Estate Raision Automaa, 20,400 m3, floors 3-5, stage 3, 18,637 m3, Tampere Kauniainen Plaza Business Park, Presto, 28,000 m3, Raisio Real Estate Company Opintanner, stage 10, Housing Company Korkeavuorenkatu 10, Vantaa Sandrew Metronome Oy/Turun Kinopalatsi, 52 flats, 10,970 m3, Tampere renovation, 30,000 m3, Helsinki Institute of Occupational Health, stage 3, cinema, 42,041 m3 Tampere University of Technology, parking Real Estate Company Käenkuja 3a, renova- renovation of an office building, 24,860 m3, Turku University Housing Foundation, reno- garage, 22,950 m3, Tampere tion and modification of an office building, Helsinki vation, 266 flats, 30,965 m3, Turku Technology Centre Hermia 11, office buil- 38,500 m3, Helsinki Stella Business Park, Terra, 44,470 m3, Espoo Fortuna, industrial building, 28,805 m3, ding, 21,000 m3, Tampere Helsinki University Central Hospital, extensi- Institute of Dentistry, modification, 6,300 m3, Forssa Real Estate Company Hermia Parking, on, 36,890 m3, Helsinki Helsinki Innolasi Oy, industrial building, 11,130 m3, 4,000 m3, Tampere Libri Logistiikka logistics centre, 116,000 m3, Forssa Housing Company Tampereen Pyhäjärven- Vantaa Regions Forssa Vocational Institute, renovation, helmi, 29 flats, 8,060 m3, Tampere Nokia Keilalahti, headquarters extension, South-West Finland: 20,140 m3, Forssa Housing Company Kangasalan Toosinpiha, 98,100 m3, Espoo Mylly Shopping Centre, 578,127 m3, Raisio Housing Company Förinranta IV, 48 flats, 21 flats, 8,450 m3, Kangasala Plaza Business Park, Piano, 28,000 m3, Nokia ATK 2, 12,545 m3, Salo 18,754 m3, Turku Housing Company Tampereen Eetunpiha, Vantaa

12 Contracting development of a revamp for an building Hermia 11. This was a on new Senior Homes was also Rest of Finland entire city-centre block is in Probuild development project in started in Tampere and Vaasa. In progress. Personnel training con- which a flexible business facility Tampere, an in-house competi- Southwest Finland tinued energetically. The aim was model was sought for the tech- tion for safety on building sites Operations in Southwest Finland to improve vocational skills at nology centre and the construc- took place. At Dynamo, effort are concentrated in the Turku every level with the aid of various tion side was characterised by was deployed on schedule man- and Salo regions. The unit posted diploma programmes. highly developed partnering. An agement for heating, plumbing a good profit. Building opera- indoor car park was built for Tam- and air conditioning work with tions were strongly marked by the Western Finland pere University of Technology, the help of a thesis on the sub- completion of large building jobs: The Western Finland market re- for which NCC refined the plans ject. the Nokia Kampa project in Salo gion includes Pirkanmaa, Central so that 450 parking places were was completed in June, the Mylly Finland and Ostrobothnia. The created instead of the original Eastern Finland and shopping centre in Raisio was regional offices were in Tampere, 390, thus greatly reducing the Southeast Finland completed in October, the Kuto- Jyväskylä and Vaasa, all of which price per space. The main project The Eastern Finland and South- mo shopping centre in Forssa are university towns. The manag- in Jyväskylä was the construction east Finland regions were amal- and As. Oy Turun Airistontähti er for the Pirkanmaa area was of business premises for Sonera gamated on 1 January 2002 as the in Turku were completed in No- Jorma Kivimaa, Central Finland in the heart of the city. In Vaasa, a new Eastern Finland region. Ju- vember. The number of new was managed by Olavi Tikkanen high-end science library was com- hani Väisänen was appointed its dwellings completed was 352 and and Ostrobothnia by Rune Hag- pleted in the university campus, Director. The Southeast Finland 327 were under construction. The ström, who left the company at and work was started on the Fu- region is responsible for building market for construction in South- the end of the year. The profit tura 1 office building for the local in the Lahti, Porvoo, Kouvola, west Finland is in decline. Deci- posted by the unit was passable. technology centre, using experi- Kotka, Lappeenranta and Imatra sions on investments were slow The number of new homes com- ence gained on the Hermia project areas. The unit posted a poor net in coming and this contributed to pleted was 387 and 320 were un- in Tampere. Spec housing con- profit. The unit’s management was the difficulty of maintaining a der construction. Together with struction was completed in all changed at the end of the year, steady level of output. However, the Property Development busi- municipalities in which the unit when Juhani Väisänen was ap- there are new opportunities in ness area, Business Park Dynamo has an office. The downturn in pointed its Director. Juha Rah- construction related to sectors was started; this will be the first the market slowed the start of konen serves as the Lappeenran- such as logistics and particularly business park to be built outside new projects. The first develop- ta Regional Manager. In Lahti, in renovation. A strong effort the Helsinki Metropolitan Area. ment based on the Senior Home the work on building the luxury was deployed in partnership and Construction in the Hervanta dis- concept in Toijala was brought to Ankkurinaitio housing project negotiated contracting, and the trict continued with the office the start-up stage. Design work continued. Poloneesi and Menu-

Contracting Kauko Wasenius Turnover, Personnel Uninvoiced Management MEUR orders, MEUR

Business Premises construc. 85.1 143 64.1 Antti Toiviainen Renovation 25.3 67 17.3 Armas Lattunen

Total 110.4 210 81.4

29 flats, 7,900 m3, Tampere Housing Company Vaasan Viherpuisto, Hotel Rukan Omena, budget hotel, repair and modification of bathrooms and Housing Company Palokan Koivulehto, 6 flats,1,900 m3, Vaasa 100 rooms, 8,700 m3, Kuusamo, Ruka balcony walls, 234 flats, 65,000 m3, Helsinki 33 flats, 9,160 m3, Jyväskylä Housing Company Vaasan Puistotar, 14 flats, NCC Tähtikelo, company guest cabin, Leppävaara Shopping Centre, stage 1, Supermarket S-Market Laukaa, 16,500 m3, 4,390 m3, Vaasa 1,214 m3 360,000 m3, Espoo Laukaa South-East Finland: OPOY Parking Garage, 233 parking spaces, Renovation of National Theatre, 42,950 m3, Sonera office building, stage 2, 24,702 m3, Housing Company Lahden Massinpoiju, 24,696 rm3, Oulu Helsinki Jyväskylä 60 flats, 16,293 m3, Lahti Tervatalo Oy/Lumilinna, government-subsidi- Kespro, modification of commercial building, Scientific Library of Vaasa, 35,890 m3, Vaasa Technology Centre Kareltek, stage 7, zed housing, 25 flats, 7,492 m3, Oulu 78,000 m3, Vantaa Mecanova, industrial building, 42,230 m3, 13,585 m3, Lappeenranta Sonera House, office building, 26,800 m2, Opus Business Park 2, 33,800 m3, Helsinki Nivala Renovation of Kilpiäinen, 15,820 m3, Lahti Oulu Plaza Business Park, Forte, 28,000 m3, OMG Kokkola Chemicals, 20,960 m3, Eastern Finland: Swimming pool in Oulu, extension and reno- Vantaa Kokkola Housing Company Taivaanpakontie 23, vation, 65,134 m3, Oulu Kätilöopisto Maternity Hospital, facade Prison of Vaasa, renovation, 22,414 m3, renovation, 13,930 m3, Kuopio ET2, talot A ja B, blocks A and B, office renovation, Helsinki Vaasa Varaosamaailma Kuopio, commercial buil- building, 47,370 m3, Oulu Business Incubator II, 71,300 m3, Helsinki Sanifani Spa, renovation, 23,400 m3, ding, 11,300 m3, Kuopio Ämmässuo Waste Treatment Plant, Kalajoki Northern Finland: Major projects underway in 2001: 36,510 m3, Espoo Housing Company Kokkolan AimonKulma I, Extension of Hotel Rukanhovi, 105 rooms, Greater Helsinki Area: Institute of Pathology, renovation, 80,000 m3, 18 flats, 4,130 m3, Kokkola restaurant, 22,000 rm3, Kuusamo, Ruka Pohjois-Haaga Real Estate/Pakkalantie, Helsinki

13 etti were completed and sold dur- agreement for the construction uu and Varkaus. The number of and 145 were under construction ing the past year. Construction of stage 8 was won with a French new dwellings completed was 132 at year-end. A number of private- began on the last building on the contracting procedure which and 77 were under construction. ly financed Senior Home build- shoreline, Sonaatti. There is still looked for the best proposal in The timeshare apartments com- ings were being designed and mar- some capacity left over in the operational terms. A new type of pleted in the Tahko resort area keted, and these attracted a great planning permission for the block framework agreement was signed are in the immediate vicinity of a deal of interest. The past year reaching to the Lake Vesijärvi with the city of Imatra for the golf club and ski slopes. The was a busy time for building busi- shore, and Senior Home housing development of the Imatra rap- main industrial job was a 22,700 ness premises and public facilities and other items are being planned. ids. In a partnership project be- cubic metre extension for Abloy’s in this region. Among the busi- The total of new homes complet- tween public and private parties, business premises in Joensuu. In ness premises completed were ed was 189 and 82 were under the risks and benefits are shared. Savonlinna, work began on the Sonera House and two seven- construction at year-end. Private- The aim is to develop the Imatra construction of a wooden con- storey office buildings for Oulu ly financed housing was also built rapids into the new main city cert hall. The Kuopio regional Technology Park. In addition to in Porvoo, Kotka and Lappeen- centre. Among the items planned office was granted ISO 14001 these, the construction of a high- ranta. The need for business pre- for the district are a shopping environmental certification. standard Pilot Business Park was mises declined, but commercial centre, a social services office, started next to the airport in Ou- construction picked up as inter- retail outlets, an office building Northern Finland lunsalo. The Raksila swimming national retail chains expanded and a Senior Home building. The Northern Finland regional pool was renovated and extended their networks. Among the items The Eastern Finland region office is responsible for building for the city of Oulu, in addition started in the past year were an posted a poor net profit in 2001. construction operations in Oulu to which the construction of the extension to the Citymarket de- The unit’s management was and Lapland Province. The com- Kontinkangas hospital was start- partment store in Heinola and changed in the autumn, and re- pany posted a satisfactory net ed. In Oulu, an extension to Ho- the construction of the Lidl shop sponsibility for business in the profit. Housing projects were un- tel Eden was begun. In Ruka, in Kouvola. In Lappeenranta, region was taken up by Ari Laa- der construction after success in extensions to Hotel Rukan Ome- stage 7 of the Kareltek technolo- manen. Spec housing construc- competitive tendering. A total of na and Hotel Rukahovi were com- gy centre was completed and an tion continued in Kuopio, Joens- 30 new dwellings were completed pleted. The construction of privately financed holiday homes was started in the best part of the Regional Building Ruka resort area. In spite of a Juhani Väisänen tight market, the Northern Fin- Turnover, Personnel Uninvoiced Housing starts Privately Management land region’s order books were in MEUR orders, MEUR in 2001 financed, % reasonably good shape at year- Southwest Finland 76.7 254 18.8 388 0 Mauri Varjonen end. Western Finland 292 - Tampere Region 41.7 21.8 256 11 Jorma Kivimaa - Central Finland 14.0 2.0 82 46 Olavi Tikkanen - Ostrobothnia 10.5 5.7 0 Rune Hagström Southeast Finland 23.7 160 17.9 115 78 Antti Inkilä Eastern Finland 14.3 124 9.3 83 7 Jouko Ryhtä Northern Finland 38.6 157 12.4 146 15 Juhani Rastas

Total 219.5 987 87.9 1,070

Vesala Real Estate/Kontulankuja 5, renovati- group accommodation for 32 people, Housing Company Tampereen Vihilahden- Renovation of Wanha Casino and construction, 84 flats, 28,930 m3, Helsinki 26,280 m3, Turku lehto, 29 flats, 7,360 rm3 on of Savonlinna Hall, Savonlinna Real Estate Company Kunnalliskodintie 6, Housing Company Ilolansalo, day centre, Futura I office building, 22,450 m3, Vaasa Northern Finland: 576 balconies, 90,200 m3 38 sheltered homes and group accommoda- Pettersborg day centre, 3,365 m3, Pilot Business Park 1, office building, Nordic Aluminium A4, industrial building, tion for 14,13,400 m3, Salo Kokkola 19,000 m2, Oulunsalo 13,500 m3, Lohja Western Finland: South-East Finland: PSOAS/Linnanmaan ykkönen, 124 govern- Dynamo Business Park, 77,000 m3, Technology Centre Kareltek, stage 8, ment-subsidized flats and offices, Regions Tampere 10,100 m3, Lappeenranta 34,810 m3, Oulu South-West Finland: Takahuhti 1 Kotilinna, renovation of block of TietoEnator Oy, office building, 20,000 m3, Extension of Hotel Eden, spa hotel, Moisio School, 29,200 m3, Salo flats, 30,350 m3, Tampere Imatra 69 rooms, 13,475 m3, Oulu Raisio Car Centre, 20,400 m3 Nekalan Kotilinna 1 and 3, renovation, Extension of Heinola Citymarket, 22,800 m3, Tervatalo Oy/Pentinkulma, renovation, Turku University, Fennicum, renovation, 20,943 m3, Tampere Heinola 88 flats, 17,770 m3, Oulu 15,000 m3 Opintanner, stage 14, 125 flats, 27,300 rm3, Housing Company Runeberginkatu 21, Housing Company Rukan Karhunvartija, Housing Company Kupittaansato, Tampere 14,260 m3, Porvoo 12 holiday homes, 2,706 m3, Kuusamo 26,835 m3, Turku Siirtolapuutarhankatu 8 YH-Asunnot Oy, Eastern Finland: Kontinkangas Hospital, 52,700 m3, Oulu Housing Company Turun Pihlajakoti, shelte- 57 flats, 13,800 m3, Tampere Joensuu University, Aurora, 14,300 m3 Cultural Centre Akustiikka, 15,300 m3, red homes and rental flats, group flats, day Housing Company Tampereen Hatanpään Joensuu University, renovation, 35,400 m3, Ylivieska centre and nursery, 78 sheltered homes and Puistokuja 28, 44 flats, 10,250 m3, Tampere Savonlinna

14 NCC – BUILDING FINLAND

The Raksila swimming pool was renovated An ambience of healing and wellbeing was created in Aurora House was built to serve the University and extended for the city of Oulu. Kontinkangas hospital in Oulu. of Joensuu Continuing Education Centre.

Student housing was renovated in Turku A car park was built for Tampere University of Technology. NCC has built no less than ten stages of the Tampere Student Village. NCC improved the designs so much that the final result Technology Centre Hermia. could accommodate 450 cars instead of the earlier 390.

TIMO LINDHOLM

The Raision Automaa car showroom gained NCC’s Oulu regional office built hotel Rukan Omena, an extension to Rukahovi and highly functional new premises. The overall privately financed holiday homes in the Ruka resort area. design was the work of Optiplan Oy.

In Turku, a sheltered housing facility is An office building for telecom operator Sonera Turku’s first skyscraper, the 16-storey Airistontähti, was under construction. It will feature commu- was built in the heart of Jyväskylä. completed in the Majakkaranta district. nal apartments, a service centre and a daycare facility.

15 NCC TÄHTIKOTI HOMES – HEALTHY TO LIVE IN, SAFE TO OWN

NCC TähtiKoti homes have attributes according to the In the Kartanonkoski of Vantaa, an idyllic, Swedish-influen- Finland is ageing – a new philosophy of housing buyers’ values and needs. ced housing village is under construction. The terraced is needed. NCC Senior Homes anticipate the houses of Eemeli and the Ritarla apartment buildings have needs of the increasingly elderly population. already been completed.

KARI ERKKILÄ

The Leppävaara district of Espoo is growing into The Jugendstil buildings in the Nikkilä district of Sipoo Hopeatiuku in Vantaa features clean-lined a noteworthy regional centre. Leirituli in Espoo are to be renovated as homes. There has been plenty of architecture that is emphasised with a touch offers homes of quality to newcomers. interest and demand. of blue.

Five apartment buildings designed by the Pekka Helin The Bulevardi block in Helsinki is in a unique location. NCC is responsible for constructing the buildings Aaria, architectural firm are being built in the Lauttasaari Duetto, Serenadi and Sonaatti, together with marketing and sales. district of Helsinki.

Kastehelmi in Espoo is a pastel apartment building in a OmaKymppi is a financing solution that offers housing Low-rise housing close to the Helsinki Metropoli- spacious location on a hillside site. for a small capital input and low monthly payments. tan Area is a possibility at Suvikukka in Tuusula. One of the projects is Metsolantähti in Korso.

16 HOUSING During 2001, NCC Finland Oy started building 2,649 dwellings Housing output in Finland and a total of 2,187 dwellings were completed during the year. is not sufficient in view of The number of privately financed the needs, and demand is dwellings completed during the financial year was 868, and 508 forecast to grow in the next were under construction at year- few years as a result of ur- end. Completed, unsold dwellings at year-end amounted to 320 units. ban migration. The struc- In the first half of 2001, demand A home of your own – and fast. for housing construction tempo- You have the pick of almost 2,200 tural change in means of rarily slowed down, but it picked new homes built by NCC. livelihood will still continue up again in the centres of growth towards the end of the year. for years; moreover, the per- which 392 were under construc- centage of urban populati- Helsinki Metropolitan Area tion at year-end. Unsold dwell- Housing Southern and Northern ings at year-end numbered 125, on is still ten points lower Housing construction in the Hel- but sales picked up after the turn than in European indust- sinki Metropolitan Area is divid- of the year, and more than 100 ed into the Southern, Northern, dwellings were sold in January. rialised countries. Popula- Lohja and Hämeenlinna regions. Housing Southern posted a satis- tion growth is at its highest The number of new dwellings factory profit and Northern’s completed in the area was 1,097 profit was good. The units were in the Helsinki Metropo- and at year-end there were 1,666 responsible for the development, under construction. The number construction and sales of hous- litan Area, Oulu, Tampe- of privately financed dwellings ing projects and they built state- re, Turku and Jyväskylä. completed was 324, in addition to supported housing in collabora-

Housing Heikki Miettinen Turnover Personnel Housing starts Privately Management MEUR in 2001 financed %

Housing construction, Southern 78.3 261 752 14 Juha Korkiamäki Housing construction, Northern 50.3 123 420 16 Kari Kiviluoma Lohja region 29.4 100 153 39 Tuomo Äyräväinen Hämeenlinna region 12.6 77 160 35 Jarmo Mäkelä

Total 170.6 561 1,485

Major projects completed in 2001: Real Estate Company Joupinmäki A, Housing Company Espoon Gyldenärinkatu 1, 55 flats,14,380 m3, Espoo 43 flats, 11,200 m3, Espoo Greater Helsinki Area Housing Company Helsingin Reginakuja 4, Housing Company Vantaan Arinapuisto, Kontula Real Estate/Linnoittajantie , 75 flats, 51 flats, 16,925 m3, Helsinki 29 flats, 8,700 m3, Vantaa 23,470 m3, Helsinki Housing Company Helsingin Merisatu, Housing Company Vantaan Arinapelto, Real Estate Company Fredriksbergsgatan 87 flats, 28,020 m3 and parking garage 43 flats,12,100 m3, Vantaa 52-54, 105 flats, 34,500 m3, Helsinki 5,920 m3, Helsinki Housing Company Tuusulan Silmu, 43 flats, Real Estate Company Vantaan Arinatie, 12,875 m3, Tuusula 58 flats,16,060 m3, Vantaa Housing Company Helsingin Sammalparran- Housing Company Vantaan Hopeatiuku, kuja, 50 flats, 15,055 m3, Helsinki 32 flats, 13,170 m3, Vantaa Housing Company Herttoniemen Majakka, Housing Company Espoon Zanseninkuja 2, 50 flats, 17,520 m3, Helsinki 43 flats, 11,200 m3, Espoo Housing Company Espoon Suvelantie C, Housing Company Hämeenlinnan 44 flats, 12,340 m3, Espoo Lukaskulma, 33 flats, 11,752 m3, Housing Company Espoon Ruusupiha, Hämeenlinna 13,690 m3, Espoo

17 tion with the clients on a privately tion for the Federation of Espoo apartment building and terraced dwellings in Lohja. Areas of em- financed basis. In order to ensure Parishes, which the federation housing projects were completed phasis in housing construction in- steady output, investments were held for the land it owns in Saar- in the autumn and construction clude, in addition to Lohja, Nurm- made in plots in good locations. nilaakso. The criteria for the com- in the area continues. In the Ari- ijärvi and Kirkkonummi. A large- A tract of land was purchased in petition included quality, func- namäki area of Kartanonkoski, scale transaction for plots of land Lauttasaari which is scheduled for tionality, environmental aspects, 130 dwellings were completed for effected towards the end of the the construction of 110 dwell- the overall economy of housing, non-profit-making clients, and the year ensured future prospects in ings in early 2002. An exchange and social diversity. In the pro- remaining 70 dwellings will fol- the Kirkkonummi municipality, of plots was effected with the posal made by NCC, the costs low in the early months of 2002. which is a net beneficiary of mi- city of Espoo in which NCC throughout the occupation of the Senior Home buildings were be- gration. A subject of development received entitlement to build facility were calculated by an EKO ing planned for Järvenpää and by the unit – an NCC Senior about 50 high-quality terraced appraisal, thus yielding excellent Tuusula which are to be started in Home building, a privately fi- house units in Soukanniemi by indications for design manage- spring 2002. nanced type of housing specially the sea. At the end of the year a ment. NCC is making a 60-year designed for the older resident – “Buy Your Own” campaign was lease agreement for the tract of Lohja and Hämeenlinna was further packaged during the launched, in which a chance was land with the Federation of Es- The Lohja and Hämeenlinna re- year, and a 37-dwelling develop- offered to become an owner-oc- poo Parishes and it will be regions were amalgamated in the ment in the centre of Lohja was cupier for a small capital input sponsible for the marketing and beginning of 2002 as a unit of started as a pilot project. Another and low living costs. There was so sales of the dwellings. Saarnilaak- Regional Building, the Director of NCC Senior Home building was much interest that the reserva- so is to have a total of 28 terraced which is Tuomo Äyräväinen. started in Nurmijärvi village in tions taken will make it possible and semidetached houses. Fur- The Lohja regional unit oper- 2002, and all units in this were sold to start building new projects in thermore, NCC has an option to ates on a broad basis, constructing out almost immediately. The con- the beginning of 2002. build approximately another 5,000 both housing and other buildings. struction of a Senior Home build- Among Housing Southern’s square metres of floor area or It posted a good net profit. The ing will also be started in the main projects were the Sinebry- 40-50 homes in the area. It is biggest project in the unit’s histo- centre Kirkkonummi in 2002. choff block at a prestigious ad- intended to start construction in ry, a department store for City- The Hämeenlinna region con- dress on Bulevardi. The first stag- spring 2002, enabling new resi- market, was completed in the Oja- centrated on housing construc- es of this, Aaria and Serenadi, dents to move into Saarnilaakso mo district of Lohja, and the long- tion and its output in Hämeenlin- were completed. Duetto was un- in spring 2003. planned Kirkkonummi swimming na consisted of both privately der construction and in summer Housing Northern refur- pool was also completed. The Lo- financed dwellings and partner- the construction of As. Oy Bule- bished Jugendstil buildings in the hja regional unit carried out reno- ship jobs with a non-profit-mak- vardin Sonaatti began. NCC Fin- Nikkilä district of Sipoo from the vations on properties including the ing client. Sales of the apart- land Oy has responsibility for city of Helsinki and converted Kirkkonummi Swedish-language ments did not proceed as hoped marketing, selling and construct- them into high-class apartments. school, and it built a daycare cen- and the region posted a poor ing the apartment buildings. In The first 52 dwellings will be tre in Laajakal-lio district of profit. NCC Senior Home build- Lauttasaari, five apartment build- completed in the Lönnborg dis- Kirkkonummi. An industrial building projects in Riihimäki and ings designed by the architectural trict of Sipoo in autumn 2002. ing for Nordic Aluminium and the Hyvinkää are under way. The firm Pekka Helin were under con- The area has attracted much in- Metsähovi research centre round- Hämeenlinna Regional Director struction, of which the first 84 terest and most of the dwellings ed out the array of products. The resigned in the autumn, since apartments were completed and have already been reserved or number of new dwellings com- which time Housing Northern’s the next 74 were under way. Build- sold, so NCC is starting new pleted during the year was 161, of Director Kari Kiviluoma has been ing continued in the Ymmersta projects in the area. In the Kar- which 57 were privately financed. in charge of operations. district of Espoo. Housing South- tanonkoski garden city district of In less than five years, the unit has ern also won a quality competi- Vantaa, the first privately financed built almost 120 privately financed

Major projects underway: Housing Company Helsingin Bulevardin Housing Company Fallkullan Kuulas, Sonaatti, 79 flats, 56,200 m3, office and 46 flats, 14,200 m3, Helsinki Greater Helsinki Area business premises 2,876 m2, Helsinki Jakomäki Real Estate/Fallkulla, 65 flats, Real Estate Company Maunulan Asunnot Housing Company Helsingin Bulevardin 18,800 m3, Helsinki and Vallesmanni day-care centre, 20,824 m3, Serenadi, 47 flats, 20,505 m3, Helsinki Real Estate Company Maunulan Asunnot/ Helsinki Housing Company Helsingin Bulevardin Housing Company Helsingin Tuikkuniitty/ Jakomäki Real Estate/Louhikkotie 2, 71 flats, Duetto, 56 flats, 20,670 m3, Helsinki Housing Company Helsingin Tuikkupuisto, 20,020 m3, Helsinki Real Estate Company Espoon Leppäviita 11, 45 flats, 16,185 m3, Helsinki Housing Company Helsingin Meriminttu, 42 flats, 11,850 m3, Espoo 74 flats, 27,790 m3, Helsinki Housing Company Espoon Ymmerstan Real Estate Company Puotilan Metrokatu 4, Ullantorpantie 8, 45 flats, 11,850 m3, Espoo 75 flats, 16,850 m3, Helsinki Housing Company Sipoon Lönnborg, Real Estate Company Kylterinvuori, 66 flats, 52 flats, 25,800 m3, Sipoo 12,900 m3, Helsinki Real Estate Company Jönsaksentie 2, Real Estate Company Vantaan Punamultaku- 48 flats, 13,580 m3, Vantaa ja, 49 flats, 13,910 m3, Vantaa Sato Vuokrakodit Oy/Staffaksenkuja 1, Real Estate Company Vantaan Arinamäki, 53 flats, 13,160 m3, Vantaa 42 flats, 11,970 m3, Vantaa

18 NCC – BUILDING FINLAND

Luxury apartments being built in the centre Airistontähti in the Majakkaranta district of Turku has A building owned by Asunto Oy Palokan Koivulehto in of Oulu in Venetian style – by the edge of the splendid sea views. the Jyväskylä area was converted impeccably. shore.

An apartment building was built in the centre of Asunto Oy Rannanvalot is under construction in Laukaan Sarakoti in Central Finland is located close to Lohja for people with limited mobility. It makes Joensuu, on a meander in the Pielisjoki River and shops, banks and health services. An excellent choice an excellent place to live for the elderly. close to the city centre. for the older resident as well.

The Vihilahti district in Tampere has The Ankkurinaitio area in Lahti offers stylish housing on the shore of Lake Vesijärvi, close to Sibelius Hall. been under construction for years. The demand has been good.

KARI ERKKILÄ

The Lammenpeili (Mirror Pond) building in Peltolantähti in Lappeenranta has 14 apartments Lukaskulma in Hämeenlinna is close to Tuusula lives up to its name. with services conveniently nearby. the city centre services.

19 SPACE FOR PEOPLE

VOITTO NIEMELÄ

The Grani shopping centre in the centre of Kauniainen is an example of Kai Wartiainen’s unfettered style. The commercial centre in the Leppävaara district of Espoo was the result of multi-year negotiations for the Property Development unit.

Pilot Business Park, under construction in Oulu, Construction is a team sport, just like Dynamo Business Park in Tampere provides a highly celebrates its topping-out. good customer service. diverse corporate environment, state-of-the-art technology, and comprehensive real estate services.

MIKAEL LINDÉN

The flagship of Vantaa Airport City is NCC’s Airport Airport Plaza Business Park is comprised of three office buildings and an indoor car park. It provides corpo- Plaza Business Park. rate customers with elegant public spaces and services to match the concept, charged for only on the basis of use.

VOITTO NIEMELÄ

Business House Casa in the Tapiola district of Espoo is The investors in Business House Casa have little to do; NCC Business Parks is a concept that has done in Finland’s Silicon Valley, close to high-tech companies NCC found the lessees, made the lease agreements well in the other Nordic countries as well. They and related educational and research facilities. and put the maintenance services out for tender. have been built in Finland for the past ten years and more.

20 PROPERTY DEVELOPMENT Stella Terra with a total of 10,000 square metres of floor area, was The business area’s servi- completed and handed over to customers for their use. The con- ces are property develop- struction and marketing of Stella ment and promoter servi- Business Park, which were performed in cooperation with Oy ces, finding lessees, and of- Alfred A. Palmberg Ab, was well timed for the market and was a fering attractive high-yield great success for its backers. All properties to customers. Its the premises were leased out and sections were sold to investors products include NCC Customers with purchasing power are checked out for retail locations. before each section was finished. Business Parks and Hou- The property investors in the Stel- la project are LEL Employment ses concepts, commercial Pension Fund, the Finnish Paper developments, hotels and Workers’ Union, Sampo Plc and the Tapiola Insurance Group. NCC logistical centres. Property Development also began spec construction of office buildings in Helsinki. Opus Business The sales volume of the Property taken good care of. The new unit Park is in the centre of the Hert- Development business area was started running in the beginning toniemi district, close to the metro MEUR 34.3 and it had 26 em- of 2002 and Esko Salonen serves station, commercial services and ployees. Its Director was Jorma as its Director. excellent transport connections. Ahokas. The business area’s net In the vicinity of Helsinki- The first part of it will be com- profit was poor because the rise Vantaa airport, construction work pleted in spring 2002. in office properties’ capacity utili- continued on phase three – named The Grani shopping centre in sation rate slowed down and real Forte – of the Airport Plaza Busi- Kauniainen was completed in the estate deals were postponed to ness Park. The building is to be beginning of 2001 and it was the following year. Property De- completed in spring 2002 and opened in spring the same year. velopment prepared for the start- demand from lessees has been The construction of a com- up of the life-cycle service man- brisk. The property investor in mercial centre in the Leppävaara agement operations for the prop- phase 1 of the Airport Plaza was district of Espoo got under way erties developed and commis- LEL Employment Pension Fund after several years of development sioned by it. The intention is to and the second stage, Presto, was work. The commercial centre will ensure that the NCC Business sold to the Finnish Paper Work- encompass a total of 110,000 Park service concept is maintained ers’ Union in January 2001. Ne- square metres of floor area. A and develops over the life cycle, gotiations are in hand on a prop- consortium of NCC and Skanska that the utilisation rate of the erty investment deal for Forte. started on building the first phase premises is as high as possible, The last section of Stella Busi- in spring 2001. The project will be and that customer relations are ness Park in Espoo, known as completed by the end of 2002.

USERS Ability of users (e.g. retailers) to pay rent €/m2/month. LANDOWNER Space utilisation efficiency. Enhancing the value of permitted building INVESTORS volume. Investors’ yield requirements, % of capital invested. PROJECT Continuity and security of lease agreements Expenses of planning, marketing and construction.

21 Immediately thereafter work will ness area. The business area’s was delivered in the Helsinki Met- procure tracts of land in Riga and begin on the second phase, begin- turnover showed a marked im- ropolitan Area and the Tampere to develop them for commercial ning with the demolition of the provement in 2001, mainly due to region. The equipment operations applications. The development of old MaxiMarket department store. takeovers effected at the end of mainly served NCC Finland Oy’s a tract of land purchased and Work was not started on buildings 2000. During 2001, the aggregate construction needs. There were leased during the previous year in the Signaali Business Park close business interests of the Viita ten business locations in differ- for a shopping centre project con- to Leppävaara shopping centre in companies were acquired. Indus- ent parts of Finland. The equip- tinued with the zoning of the autumn 2001 owing to a down- try’s profit centres were asphalt, ment operations’ quality system tract and with preliminary plan- turn in demand for office space. ready-mix concrete and aggregate, has been awarded ISO 9002 certi- ning for the project with the aim There is, however, immediate per- and an equipment unit engaging fication. of starting the project in summer mitted building volume for the in plant hire. 2002. A property on Rupniecibas complex. Asphalt business in Finland INTERNATIONAL street in Riga city centre was con- In Tampere, work continued was the responsibility of Interas- OPERATIONS verted into modern apartments on the construction of Dynamo faltti Oy. NCC also has a 50% and sales of these got started at Business Park. This complex to- stake in Valtatie Oy. Interasfaltti’s NCC International Oy the end of 2001. The operations tals 14,000 square metres of floor turnover was MEUR 24.6 and it The turnover from the Interna- of the subsidiaries in the Baltic area and it is scheduled for com- had 105 employees. In addition tional Operations business area states were enhanced through in- pletion in July 2002. Work began to traditional asphalt spreading, was MEUR 11, it had 29 employ- ternal collaboration and training on the construction of Pilot Busi- its special products have become ees and its net profit was poor. with the aim of taking the lead ness Park in the immediate vicini- an increasingly important part of Operations were performed in position among local construc- ty of Oulu airport. The first phase its business. These include, for the name of NCC International tion companies. of this, with 5,000 square metres example, Densiphalt paving, pro- Oy and its local subsidiaries. NCC of floor area, is scheduled for file concrete and reflective kerb- International Oy’s Managing Di- CIVIL ENGINEERING completion in spring 2002. stones. rector for the period 1 January – The market region for ready- 31 July 2001 was Timo U. Kor- The Civil Engineering business INDUSTRY mix concrete was the Helsinki honen and from 1 August Pekka area’s turnover was MEUR 18.4, it Metropolitan Area and Pirkan- Entelä. The market region of In- had 70 employees and its net prof- In the beginning of 2002, the maa, and the ready-mix concrete ternational Operations is the Bal- it was poor. Olavi Knihtilä served Industry business area was divid- units were the Åby plant in Van- tic states, Russia and the CIS, and as the Director of the unit. Civil ed into two. Asphalt, aggregate taa and the Holvasti and Mylly- the business area has offices in Engineering’s market region was and ready-mix concrete opera- puro plants in Tampere. In all, Tallinn, Riga, Vilnius, St Peters- Southern, Western and Eastern tions comprise the NCC Roads during the financial year some burg and Moscow. The strategy Finland and it had offices in Van- business area, of which Interas- 115,000 cubic metres of ready- of International Operations was taa, Turku and Kouvola. Among faltti Oy’s Managing Director Olli mix concrete was delivered, main- to reinforce its positions on the Civil Engineering’s major jobs were Kokkonen was appointed the Di- ly to construction companies and housing and construction mar- the port of Kotka, which was rector. Timo Toivanen was ap- floor contractors. With the acqui- kets in the Baltic states. completed in summer 2001. At pointed the Director of Altima, sition of the Viita companies’ In May 2001, the Estonian the end of the year, an agreement which concentrates on plant hire. aggregate business NCC also re- company Inrestauraator Ehitus was reached on winding up the The Industry business area’s ceived, in addition to the business Oü in Tallinn was acquired; the unit’s operations whereby a man- turnover was MEUR 50.4, it had interests and aggregate reserves, company specialises in high-stan- agement buyout took place. A con- 267 employees and its net profit machinery for rock-crushing, ex- dard renovations and interiors. tract for a mineshaft for Outo- was satisfactory. Pentti Kuvaja cavators and wheel loaders. Some The purpose of a property devel- kumpu Chrome Oy currently in served as Director of the busi- 1.4 million tonnes of aggregate opment set up in Latvia is to progress is being handled by a

International Operations Major projects under construction:

Major projects completed: N. V. Sklifosovsky Emergency Care Research Institute, renovation of the clinical surgery Extension to Philip Morris Cigarette Manu- wing, 70,847 m3, Moscow, Russia facturing Plant, 34,500 m3, Klaipeda, Paanajärvi Park Centre, 3,700 m3, Russia Lithuania Renovation of an elderly apartment building, Salla Border Crossing, 10,000 m3, Salla, 28,312 m3, Raekoja plats, Tallinn, Estonia Russia Power transmission line to Salla Border N. V. Sklifosovsky Emergency Care Research Crossing, 30 km Institute, cardiological centre, 5,187 m3, Moscow, Russia Renovation of Astros administrative building, 3,900 m3, Riga, Latvia Renovation of Villa Sampo, 2,326 m3, Pärnu, Estonia Rupniecibas housing renovation, spec project, 8,450 m3, Riga, Latvia

22 changes. The unit has responsibil- work. There was demand for the ity for leadership in the coordina- service and operations got off to a tion and enhancement of quality, good start. The team will be en- environmental affairs and purchas- larged in Vantaa and Turku during ing. The aim is to augment the spring 2002 to about 10-strong. standard of operations and to The operations of Optiplan’s sub- Business development, service units make the information and practi- sidiaries Enertek Oy and S-Plan- and in-house construction design give cal experience within the compa- ners Oy were transferred to Opti- the construction units more competiti- ny available for active use by all. plan in the beginning of Decem- ve edge. The Unit Manager is Mika Soini. ber and the personnel moved into As of the beginning of 2002, de- new premises together. After the consortium of NCC units from duty to oversee the company’s op- velopment work was divided be- amalgamation Optiplan had 135 Finland and Sweden. erations so that they comply with tween Business Developments, employees at the end of the year, the NCC Group’s operational with Mika Soini as its Director, half of whom were in the Helsin- TELECOM guidelines, official regulations and and Housing Product Develop- ki Metropolitan Area: Optiplan the law. The service units’ special- ment under Director Heikki Miet- Architects had 32 employees, Op- Telecom was established as a sep- ists participate within their speci- tinen. tiplan Structures had 36, and Op- arate business area in the reorgan- alities to augment the entire NCC tiplan - Enertek Building Services isation of autumn 1999. The Finn- Group’s operations in such a way OPTIPLAN OY had 50. Three people worked in ish unit’s volume of business be- as to make them efficient in serv- the office in Lithuania. came unprofitably small when con- ing business activities. Senior Vice Optiplan Oy’s turnover was MEUR In the course of the year, the struction volumes fell and when President Jukka Lahtinen is head 5.5 and its subsidiaries’ turnover constantly – almost weekly – construction of the next genera- of the unit. was MEUR 0.9. Its net profit was changing work situation made it tion of wireless telecom networks The service units are: poor. Matti Leino served as the difficult to use resources efficient- was postponed. At the end of Controller operations: Matti Tuulio company’s Managing Director. ly. Numerous projects went into 2001, Telecom Finland’s opera- Human resources: In spring 2001, Optiplan ex- planning, but the work was inter- tions were wound up, but activities Anna Maria Karjalainen panded its operations by taking rupted when decisions on con- continue in Sweden and Denmark Personnel services: Raija Korpi over the mechanical engineering struction were postponed. No as part of the Contracting busi- Legal affairs: Kari Korpela design specialist Enertek Oy. En- large new office projects were start- ness area. Financing: Jorma Hyvärinen ertek’s 28 personnel reinforced ed, but the situation for housing Finance and accounting: Optiplan’s largest mechanical en- projects improved towards the end Pertti Kallio SERVICE UNITS gineering team for housing design of the year. The adoption of the IT: Riitta Takanen in the Helsinki Metropolitan Area, operating system has improved in- Corporate Communications: The service units are responsible in addition to which some of the ternal networking between design Ritva Norrgrann for the services required for busi- staff worked in Tampere. In Au- teams, and this makes itself felt in ness operations, adding value and BUSINESS DEVELOPMENT gust, a specialist team was found- improved customer activities and supporting their profit-making ca- ed to specialise in renovation in in exceptionally good feedback pacity. They also produce infor- The aim of business development the Helsinki Metropolitan Area. from the customers. The first pilot mation required by the corporate is to implement the areas of devel- Its business idea is a packaged projects were performed entirely management and the parent com- opment specified in the strategy. It service for repair jobs, encom- in the form of 3-D design, in pany, reliably and graphically, in assists the units in their develop- passing everything from assessing which the drawings are mostly compliance with the agreed dead- ment work and formulates various the need for repairs and design to generated by a model created by lines. It is also the service units’ tools and benchmarks to support commissioning and supervising the the designers.

Optiplan Oy Unfinished projects at year-end: A total of 4000 dwellings were under design or construction at the year-end, including Major projects completed: General design: several housing projects for the elderly: day - Office buildings, Mannerheimintie, Helsinki centres and Senior Home buildings. General design: - Falcon Business Park, 4 blocks, Espoo - Stella Business Park - Atrium Business Park, Espoo - Business House Formica, Vantaa - Autokeskus Raisio car showroom - Bauhaus Raisio DIY shop - Renovation of Myyrinhalme office building - Several stores for the LIDL retail chain Other: Other: Plaza Business Park, Vantaa, Casa Business Dynamo Business Park, Tampere, Pilot House, Espoo, Libri Logistiikka logistical Business Park, Helsinki, Business House centre, Vantaa, Grani Shopping Centre, Merinova, Vaasa, Renovation of Fennicum, Kauniainen Turku, Grani Shopping Centre, Kauniainen, A total of 4,300 dwellings were completed Citymarket Ojamo department store, Lohja. according to Optiplan’s designs. Phoenix Contact, Vantaa, Autokeskus Raisio car showroom

23 EVENTS DURING THE YEAR

How do values affect the way the company works? NCC AB’s new President and CEO is Alf Göransson, NCC employees of the year were Secretary The senior management considering the point. who started the job in summer 2001. Minna Lehtonen, Marketing Director Reijo Päärni and Builder Risto Rannikko.

The inauguration of the port of Kotka was attended Young professionals learning about building, Espoo city bought itself a school. Signing on by the President of Finland Tarja Halonen. Sweden, August. the dotted line are the builders and service providers NCC, ABB and Sodexho.

Älä hyvä ihminen maksa vuokraa vieraalle. Osta oma.

The unit Housing in the Helsinki Metropolitan Area won a NCC’s attractive financing package was mar- Young people are needed in the building industry. quality competition held by the Federation of Espoo Pari- keted under the Buy Your Own campaign, and The journeyman and apprentice tradition is a good shes, gaining the right to build 28 terraced and semide- this brought in a lot of enquiries. way to pass on craft skills to the younger generation. tached houses in Espoo.

To celebrate 15 years of Hermia, 15 of the major figures NCC Finland won the Bo Ax:sson Johnson grant, SEK Turning ideas into cash. NCC stimulated were presented with standards. The builders were repre- 100,000. It was used to send young diploma students initiatives and set incentive payments. sented by Western Finland Regional Director Jorma Kivimaa. on a study tour to Stockholm.

24 REPORT FOR THE 1.1.2001 - 31.12.2001 ACCOUNTING PERIOD

TURNOVER AND RESULTS more than satisfactory. Civil engi- and has 27 employees, and NCC The NCC Finland Group’s turn- neering and project exports fell Ehitus OÜ acquired the issued over in 2001, calculated on the short of their volume targets, stock of Inrestauraator Ehitus OÜ, percentage of completion, was which contributed to a net loss. a company in Tallinn specialised MEUR 628.8, an increase of As a result of the reorganisa- in renovations and which has 50 MEUR 36.6 (MEUR 592.5 in tion which came into force in the employees. In March, NCC Fin- 2000). The turnover figure includes beginning of 2002, nonrecurring land Oy acquired aggregate busi- MEUR 75.2 (MEUR 66.4) in sales items were posted which reduced ness interests, focused in the Hels- of shares in spec construction and the net profit for 2001 by approx- inki Metropolitan Area, from Kul- MEUR 24.2 (MEUR 25.6) in sales imately MEUR 1.1. Additionally, jetus ja Maansiirto Viita Oy. of tracts of land in the form of accounting practice was changed In November, the amalgam- plots and shares plus plot trans- on the Group level in line with the ation was started of Interasfaltti fers to production. The sales of parent company’s conventions: as Oy into its parent company, Oy shares have been income-recogn- a result, gross margin in contracts Läntinen Teollisuuskatu 15. Ac- ised in accordance with the date amounting to more than SEK 100 tion was started to liquidate S- on which the bills of sale were million (approx. MEUR 10.8) will Planners Oy and Enertek Oy, and signed. Exports accounted for not be income-recognised accord- the business interests were trans- MEUR 12.4 (MEUR 11.9) or 2% ing to the percentage of comple- ferred to Optiplan Oy in the be- of the Group’s turnover. tion method until the completion ginning of December. The Group’s profit before ex- level exceeds 50%. This resulted In the summer, Interasfaltti traordinary items and taxes was in a drag on profits amounting to Oy sold the issued stock of its MEUR 6.4, being a decrease of roughly two million euros. Lithuanian subsidiary UAB In- MEUR 20.1 (MEUR 26.5) on the terasfaltti. Action to liquidate the previous year’s figure. The Group’s BALANCE SHEET STATUS Russian associated company ZAO profit from operations before de- The NCC Finland Group’s bal- Eurolog Park Pulkov and the Es- preciation was MEUR 14.0 ance sheet total at year-end was tonian subsidiary AS Optiplan is (MEUR 29.5) which is 2.2% of MEUR 390.2 (MEUR 348.4 in still in progress. SIA Interasfaltti’s turnover (5.0%). The return on 2000) and its shareholders’ equity name was changed to SIA Inter- investment was 6.7% (21.3%) and was MEUR 84.3 (MEUR 80.0). communication. the return on equity was 5.2% Interest-bearing liabilities at (29.1%). year-end were MEUR 171 (MEUR NCC Finland Oy’s Building construction in Fin- 109.2). Financing expenses net of parent company land was still strong and profitable exchange gains and losses were NCC Finland Oy’s parent compa- business. Nevertheless, a substan- MEUR 7.4 (MEUR 3.5), which is ny is NCC AB of Sweden, which tial downturn in demand for busi- 1.18% (0.59%) of turnover. Cash is one of the Nordic region’s lead- ness premises in the late spring in hand and at bank totalled MEUR ing construction and real estate and summer affected order books 18.3 (MEUR 12.7). The equity companies and which has the Nor- in the autumn and particularly af- ratio declined to 22.9% (24.7%). dic region and the Baltic rim as its fected the prospects for spec con- The company’s liquidity was prime market areas. struction. A shift in the comple- favourable throughout the finan- tion of transactions on housing cial year. The divisions under construction and property The NCC Finland Group’s busi- to a later stage of construction has INVESTMENTS ness divisions have been Con- meant that profits are booked only Net capital expenditure on fixed struction, Property Development, later in the accounting period, assets amounted to MEUR 11.0 Housing Construction, Industry boosting the balance sheet and (MEUR 38.9 in 2000). The invest- and Telecom. The Construction causing a deterioration in key indi- ments mostly concerned replace- division has been comprised of cators. Spec housing starts, partic- ments of construction plant and building construction, regional ularly outside the Helsinki Metro- the acquisition of aggregate busi- building, civil engineering and in- politan Area, were delayed relative ness. The capital tied up in plots ternational operations. Construc- to the original plan, and replace- of land increased by MEUR 11.7 tion design is the responsibility ment production was not obtained and totalled MEUR 87.7 (MEUR of Optiplan Oy. in all municipalities, which reduced 76.0) at year-end. From the beginning of 2002, volume and orders. The Property the NCC Construction and Hous- Development Unit made a clear GROUP STRUCTURE ing Construction divisions have profit in spite of falling short of Changes in the Group been merged into the new Con- its target for yield and for return structure struction division, which is divid- on investment. Industrial business In June, the design firm Optiplan ed into nine profit centres; build- operations were profitable, but in Oy acquired the issued stock of ing construction in the Helsinki view of the costs of start-up and the design firm Enertek Oy, which Metropolitan Area, housing con- procurement, the profit was no operates in Helsinki and Tampere struction in the Helsinki Metro-

Tuloslaskelma s.25-41 ENG 25 15.3.2002, 14:17 REPORT FOR THE 1.1.2001 - 31.12.2001 ACCOUNTING PERIOD

politan Area, Southwest Finland, PERSONNEL DEVELOPMENT tioning of the company will be Western Finland, Eastern Finland, At year-end, the parent company, The main thrust in development initiated during the current year Northern Finland, Uusimaa and NCC Finland Oy, had 2,159 em- work was on improving products, so that operations will be under- Southern Häme, international op- ployees (2,219 in 2000). The services and operations. taken by separate companies next erations, and development. The Group had 2,427 employees at In housing construction, the autumn. Industry division was divided into year-end (2,436), of which 75% areas of emphasis in develop- two new divisions, Roads and Al- were site personnel (82%). NCC ment activities were further im- OUTLOOK FOR 2002 tima. Altima is responsible for Finland Oy had an average of proving the housing product, the Towards the end of the year, building plant hire business and 2,222 employees during the year TähtiKoti (“Star Home”) brand, signs began to emerge of eco- Roads for asphalt, aggregate and (2,221) and the Group had 2,513 and increasing customer exper- nomic recovery in Europe and precast concrete business. Civil (2,476). tise. During the year, the EKO- Finland. However, the construc- Engineering’s business interests In personnel training, partic- concept was announced: this in- tion industry still expects the busi- comprising works in progress ular effort was deployed in man- cludes a calculation model for ness climate to deteriorate during were sold to the division’s opera- agement and customer service computing not only the capital the winter ahead. This year, 2002, tive management and the Tele- skills as well as work safety and cost of a property but also its is likely to be a hiatus in construc- com division was wound up. quality. Among the items started life-cycle costs. The development tion growth, and a small recovery during the financial year were a of the model continues in part- will only be seen in the course of OUTPUT business management training nership with Haahtela Kehitys Oy. 2003. Since trade and industry During the financial year, 2,187 programme developed by NCC, In operational development, will have a period of slow or zero dwellings were completed (2,502), training in supervisory and cus- the main emphasis was on pro- growth behind it, investments in of which 868 (651) were privately tomer management skills, an ex- cesses in accordance with the main production plants will be post- financed spec construction. The tensive training programme on business ideas, project manage- poned and demand for business number of dwellings under con- independent work safety moni- ment, procurement and logistics. premises will reach a plateau at a struction was 2,617 (2,403), of toring, and the enhancement of On the basis of a partnership normal level. On the other hand, which 508 (930) were privately skills related to the Year of Qual- contract entered into with Kesko, demand for housing and public financed spec construction. Dur- ity theme. Using the Property the efficiency of hardware pur- service buildings will remain high, ing the financial year, the con- Development’s Business Park chasing was tested on several pi- particularly in the urban centres struction of 446 (1,049) privately concept as a pilot, a project was lot projects during the year and of growth, but housing output financed spec construction dwell- launched with the aim of devel- enhancements were made in site figures will again be too low in ings was started. 642 spec con- oping the company’s core com- materials logistics. view of demand. Demand for struction dwellings were sold petences and determining the The company held a Year of housing will be kept up by migra- (507), and the number of unsold, main requirements for improve- Quality in 2001, with job plan- tion, population increase and completed spec dwellings at year- ment. Training aimed at profes- ning and a completion pro- changes in the family structure. end was 320 (122). sional diplomas was increased and gramme among its main features. The main thrust in interna- training in computer and language Research and development tional operations will continue to skills was continued as in previ- costs were booked as annual ex- be in the Baltic states, St Peters- ous years. penses. burg and Moscow. The slow start- On-the-job training periods up of business in the Baltic states with NCC-trained job advisers, ORDERS IN HAND last year was a disappointment, arranged in collaboration with The NCC Finland Group’s non- but the opportunities for profit- educational institutes, were ar- income-recognised orders in hand able business are now better than ranged for students from voca- declined by MEUR 75.3, being they were before. tional institutes. MEUR 282.2 at year-end. The Healthcare for employees was orders held at year-end were 94% expanded to include general prac- for Housing and Building Con- titioner-level treatment. Employ- struction in Finland (91% in ees’ physical fitness on the job 2000), 1% (4%) for Civil Engi- was improved by means of keep- neering and 5% (5%) for Project Construction output breaks fit activities and by launching new Exports. down into the following forms of early rehabilitation for percentages: groups. EVENTS AFTER THE END OF Management-by-results pro- THE FINANCIAL YEAR 2001 2000 cedures were streamlined by It is NCC AB’s aim to corporatise New housing means of employee development the divisions as defined by the construction 45% 44% Other building discussions, and progress was new organisation model, so that construction 41% 40% made in introducing personnel NCC Finland Oy is to be divided Renovation 9% 9% management software and readi- into four separate companies with ness was achieved to adopt this the following business areas: Civil engineering 3% 5% tool in personnel planning and in building construction, real estate, International supervisory work. masonry and asphalt business, and The currency exchange rate at € construction 2% 2% plant hire business. The parti- 31.12.2001: 1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 26 15.3.2002, 14:17 INCOME STATEMENTS

(€1,000) Group Parent Company Reference 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000

Turnover 1.1. 628,758 592,464 593,322 576,855 Increase (+)/ decrease (-) in stocks of finished and unfinished goods 19,857 8,719 20,681 8,575 Production for own use 1,203 486 950 453 Other operating income 1.2. 1,564 386 1,899 758

Materials and services 1.3. 435,475 417,694 420,769 413,661 Personnel expenses 1.4. 97,062 86,472 84,423 79,553 Depreciation and write-downs 1.5. 8,382 5,182 5,603 4,119 Other operating costs 1.6. 96,479 63,245 89,297 59,703

Operating profit 13,984 29,462 16,760 29,605

Financial income and expenses 1.7. -7,552 -2,978 -6,831 -3,227 Profit before extraordinary items 9,929 26,378

Extraordinary items 1.8. -3,211 -6 Profit before appropriations and taxes 6,432 26,484 6,718 26,372

Appropriations 1.9. -1,502 -1,380 Direct taxes 1.10 -2,141 -7,969 -2,080 -7,546

Net profit for the year 4,291 18,515 3,136 17,446

Tuloslaskelma s.25-41 ENG 27 15.3.2002, 14:17 BALANCE SHEETS

(€1,000) Group Parent Company Reference 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 ASSETS

Fixed assets 2.1. Intangible assets 2.1.1. 6,550 7,008 4,719 4,925 Consolidation goodwill 2.1.1. 13,938 17,695 Tangible assets 2.1.2. 34,083 26,438 26,792 19,035 Investments 2.1.3. 1,937 1,983 25,189 28,009 56,508 53,124 56,700 51,969

Current assets 2.2. Inventory 2.2.1. 196,676 187,478 194,322 185,096 Deferred tax receivables 2.6.1. 2,070 759 Current receivables 2.2.3. 116,569 94,333 119,635 96,484 Cash in hand and at banks 18,346 12,671 14,506 9,046 333,661 295,241 328,463 290,626

Assets 390,169 348,365 385,163 342,595

LIABILITIES AND SHAREHOLDERS’ EQUITY

Shareholders’ equity 2.3. Share capital 5,964 5,964 5,964 5,964 Share premium account 40,186 40,186 40,186 40,186 Retained profits 33,820 15,305 30,922 13,476 Net profit for the year 4,291 18,515 3,136 17,446 84,261 79,970 80,208 77,072

Minority interest 534 3

Accumulation of appropriations 2.4. 5,504 4,002

Obligatory reserves 2.5. 6,346 3,205 6,219 3,071

Liabilities 2.6. Deferred tax liabilities 2.6.1. 1,931 1,366 Non-current liabilities 2.6.2. 25,728 25,729 25,728 25,728 Current liabilities 2.6.3. 271,369 238,092 267,504 232,722 299,028 265,187 293,232 258,450

Liabilities and shareholders’ equity 390,169 348,365 385,163 342,595

The currency exchange rate at 31.12.2001: €1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 28 15.3.2002, 14:17 STATEMENTS OF SOURCE AND APPLICATION OF FUNDS

(€1,000) Group Parent Company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 Cash flow from business operations Profit before extraordinary items 6,432 26,484 9,929 26,378 Adjustments: Profit and loss from disposal of material and immaterial goods -280 -117 -281 -123 Planned depreciation 8,382 5,182 5,603 4,119 Financing income and expenses not paid 1,833 796 1,833 901 Increase (+)/ decrease (-) in uninvoiced portion of handed-over and partially income-recognized projects and post-completion reserves 7,582 -1,028 6,989 69 Increase (+)/ decrease (-) in obligatory reserves 3,141 2 3,148 -87 Cash flow before change in working capital 27,090 31,319 27,221 31,257

Change in working capital: Increase (-)/decrease in trade receivables 2,471 -7,398 75 -4,442 Increase (-)/decrease in loan receivables from housing associations and real estate holding -36,256 -12,472 -36,256 -12,472 Increase (-)/decrease in current non-interest-bearing receivables -980 -2,924 1,016 -2,056 Increase(-)/ decrease (+) in inventories -9,198 -96,351 -9,226 -94,062 Increase (+)/decrease in trade payables -3,917 19,565 -3,713 18,742 Increase (+)/decrease in construction fund commitment -13,422 22,007 -13,422 22,007 Increase (+)/decrease in advances received -5,042 4,313 -4,889 3,323 Increase(+)/decrease(-) in non-interest-bearing debts 3,274 7,334 1,157 5,293 Change in working capital: -63,070 -65,926 -65,258 -63,667

Cash flow from business operations before taxes -35,980 -34,607 -38,037 -32,410

Direct taxes paid -9,255 -7,308 -7,616 -7,312 Cash flow from business operations (A) -45,235 -41,915 -45,653 -39,722

Cash flow from investments: Investments in material and immaterial goods -16,305 -39,411 -13,884 -38,845 Income from disposal of material and immaterial goods 4,820 480 3,830 1,177 Increase (+)/ decrease (-) in minority interests 530 3 Cash flow from investments (B) -10,955 -38,928 -10,054 -37,668

Cash flow from financing: Increase (-)/ decrease (+) in interest-bearing loan receivables 429 2,097 Paid share issue 0 14,296 0 14,296 Increase (+)/ decrease (-) in interest-bearing debts 61,865 62,233 60,744 62,446 Group contribution received/ paid -6 -5,700 Cash flow from financing (C) 61,865 76,529 61,167 73,139

Increase (+)/ decrease (-) in liquid assets (A+B+C) 5,675 -4,314 5,460 -4,251

Liquid assets at start of year 12,671 16,985 9,046 13,297 Liquid assets at year-end 18,346 12,671 14,506 9,046

Tuloslaskelma s.25-41 ENG 29 15.3.2002, 14:17 ACCOUNTING CONVENTIONS

CONSOLIDATION rate differences on the sales reve- mercial building projects undertak- PENSION ARRANGEMENTS CONVENTIONS nue of projects denominated in en and to be sold at the company’s AND THE MATCHING OF Scope of the consolidated foreign currency where these are own risk, is income-recognised in PENSION EXPENSES financial statements not hedged with forward rate agree- its entirety in accordance with ex- Pensions have been arranged The consolidated financial statements or other similar agreements. tent of sales of shares. Sales of through pension insurance compa- ments combine the parent compa- Turnover includes the share of shares are booked in the income nies. Pension expenses are matched ny, NCC Finland Oy, and all the building work and the share trading statement on the basis the basis of in the financial statements on an Group companies and associated in spec projects as well as plots at the deeds of purchase. accrual basis. companies included in fixed assets. their acquisition cost. For partner- The residual value of work in ship projects on which NCC Fin- progress after the application of OBLIGATORY RESERVES Cross-holdings of shares land acts as a contractor for con- the percentage of completion meth- Those future expenses are booked Acquisition accounting has been struction on a plot formerly owned od is based on the variable acquisi- as costs for the accounting period applied to the consolidated finan- by the company, turnover includes tion costs of projects during the in the form of obligatory reserves cial statements. The acquisition cost the proportion of the building work development and planning stage. to which the company has commit- of shares in subsidiaries has been and the value of the plots at market ted itself and to which equivalent eliminated against the subsidiaries’ prices. ITEMS DENOMINATED IN revenue is unlikely to accrue. These shareholders’ equity at the time of FOREIGN CURRENCY include, for example, the estimated acquisition. Income-recognition of Receivables and debts in foreign guarantee expenses of long-term The difference arising from the long-term projects currency have been translated into projects that have been handed over elimination has been treated as good- Long-term projects are recognised Finnish currency at the average rate and the loss exceeding the probable will or a Group reserve, which is as income on the basis of their quoted by the Bank of Finland on recognition as an expense of a long- either depreciated or debited ac- percentage of completion. All the date of closing the books. An term project in progress. cording to plan. projects are counted as long-term exception to this is receivables when they extend into two finan- hedged with forward rate agree- APPROPRIATIONS Internal transactions and cial years. The percentage of com- ments, which are valued at the for- Depreciation differences are appro- margins pletion method applies to all con- ward rate. priations. The total of the accumu- Intra-Group transactions, unrealised tracting agreements, cost-plus-fee Exchange rate differences on lated appropriations in the financial margins on internal deliveries, inter- contracts, target cost agreements, the receivables and debts, denomi- statements is divided into tax liabil- nal receivables and debts have been design-build agreements and other nated in foreign currency, of long- ity and shareholders’ equity. The eliminated, as has internal distribu- contracts as well as all spec projects term projects hedged with forward change in appropriations for the tion of profits. in which a contract agreement is rate agreements or similar are given financial year, less tax liability, is made with a company-owned hous- under Financing income and ex- included in the year’s net profit. Minority interest ing society or building management penses. The part of the appropriations Minority interest has been shown in company. booked in shareholders’ equity is compliance with the principle of The percentage of completion VALUATION OF INVENTORY not counted as part of the Group’s materiality as a separate item in the method is applied from the month Inventory has been valued at the disposable assets. income statement and balance sheet. in which the construction work be- variable acquisition costs or the gins or the first account sales are probable resale price, whichever is INCOME TAXES Translation adjustments recorded, ending in the month in the lower. Entered in the income statement as The figures for the financial state- which the job is handed over to the income taxes are the taxes calculated ments of foreign companies in the client. Additionally, accounting VALUATION OF FIXED under tax regulations on the Group Group have been converted into practice was changed on the Group ASSETS companies’ profit for the financial Euros at the rate issued by the Bank level in line with the parent compa- Fixed assets are entered on the year, adjustments of previous years’ of Finland on the date of closing ny’s conventions: as a result, gross balance sheet at the acquisition cost taxes, and deferred taxes. the books. Translation profits and margin in contracts amounting to less planned depreciation. Planned The deferred tax liability or losses arising from the elimination more than SEK 100 million (ap- depreciation has been calculated as credit is calculated for the interim of foreign subsidiaries’ sharehold- prox. MEUR 10.8) will not be in- straight-line depreciation on fixed differences between taxation and ers equity have been entered in the come-recognised according to the assets over their economic life. the financial statements, using the income statement. percentage of completion method tax rate for following years con- The depreciation periods are until the completion level exceeds as follows: firmed as at the date of closing the Associated companies 50%. The degree of completion is Years books. The balance sheet includes Associated companies have been con- calculated as a ratio of the actual Intangible rights 5 - 10 the deferred tax liability in toto and solidated by the equity method. A projects costs relative to the fore- Goodwill 11 the deferred tax credit is shown at proportion of associated companies’ cast total costs. The market-based Consolidation goodwill 5 - 20 the probable amount. net profits/ losses for the year, ac- construction margin of long-term Other non-current expenditure 5 - 10 Deferred tax liabilities and cred- cording to the percentage holding, is spec housing projects and com- Buildings and structures 10 its are dealt with only in the consol- given under Other operating costs. mercial building projects which are Machinery and equipment 5 - 15 idated financial statements. to be sold at the company’s own TURNOVER AND risk is income-recognised on the PRINCIPLES OF INCOME- basis of the percentage of comple- RECOGNITION tion or on the percentage of shares In the calculation of turnover, sales sold in the co-op, whichever is the revenue is subjected to a deduction lower. The margin on the property The currency exchange rate at of indirect taxes and of exchange- development of long-term com- 31.12.2001: €1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 30 15.3.2002, 14:17 NOTES TO THE FINANCIAL STATEMENTS

(€1,000) Group Parent Company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 1.1. TURNOVER Turnover by divisions Building construction in Finland 325,827 360,087 325,827 360,087 International operations 12,363 11,941 0 0 Housing 219,683 173,462 219,683 173,462 Property development 33,405 38,071 33,405 38,071 Industry 38,187 7,987 13,077 5,235 Building design 6,296 5,523 0 0 Other business 1,878 808 1,330 0 Less intra-Group -8,881 -5,415 0 0 Turnover, total 628,758 592,464 593,322 576,855

Turnover includes sales of shares in spec construction Building construction in Finland 26,243 26,248 26,243 26,248 Housing 47,840 35,282 47,840 35,282 Real estate development 1,089 4,864 1,089 4,864 Total 75,172 66,394 75,172 66,394

Turnover includes sales of plots and shares in plots as well as plot transfers to production Building construction in Finland 3,862 6,351 3,862 6,351 Housing 16,553 14,106 16,553 14,106 Real estate development 3,754 5,186 3,754 5,186 Total 24,169 25,643 24,169 25,643

Turnover by market area Finland 625,248 585,937 593,322 576,855 Russia 5,884 6,223 0 0 Estonia 3,453 0 0 0 Lithuania 1,344 4,739 0 0 Latvia 1,710 980 0 0 Less intra-Group -8,881 -5,415 0 0 Turnover, total 628,758 592,464 593,322 576,855

Percentage in turnover of projects not yet handed over at year-end 227,891 252,128 219,838 244,556

1.2. Other operating income Profits on the sale of fixed assets 344 161 314 139 Service income 2,053 481 1,448 610 Other 197 9 137 9 Less intra-Group -1,030 -265 0 0 Other opereating income, total 1,564 386 1,899 758

1.3. Materials and services Materials, supplies and goods: Purchases during the year 94,778 90,664 85,939 88,472 Purchases of land and shares and issues 95,494 176,623 94,738 175,073 Change in inventory (increase-/decrease+) 10,659 -87,633 11,455 -85,487 200,931 179,654 192,132 178,058

External services 234,544 238,040 228,637 235,603 Materials and services, total 435,475 417,694 420,769 413,661

Tuloslaskelma s.25-41 ENG 31 15.3.2002, 14:17 NOTES TO THE FINANCIAL STATEMENTS

(€1,000) Group Parent Company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 1.4. Personnel expenses and number of personnel Personnel expenses: Wages and salaries 73,915 68,099 64,620 61,832 Pension expenses 13,280 13,376 12,542 11,711 Other personnel expenses 9,867 4,997 7,261 6,010 Total 97,062 86,472 84,423 79,553

Management salaries and emoluments: Presidents 940 756 628 570 Board members 42 10 42 10

The agreed pensionable age for Board members employed by NCC Finland Oy is 60. Approximately 847 T˛ has been allocated to cover the costs of the share option programme carried out by NCC AB, including employee benefits. Seventeen members of NCC Finland’s management are included in the option programme.

Average number of personnel for year: - Salaried 1,083 986 893 829 - Wage-earners 1,430 1,490 1,329 1,392 Total 2,513 2,476 2,222 2,221

Number of personnel at year-end: - Salaried 1,086 1,005 880 847 - Wage-earners 1,341 1,431 1,279 1,372 Total 2,427 2,436 2,159 2,219

1.5. Depreciation and write-downs Intangible rights 191 169 142 107 Goodwill 1,115 930 896 846 Consolidation goodwill 861 297 0 0 Other long-term expenditure 105 58 12 12 Buildings and structures 138 69 88 61 Machinery and equipment 5,805 3,650 4,298 3,093 Other tangible assets 167 9 167 0 Total 8,382 5,182 5,603 4,119

1.6. Other operating costs Rents 6,562 5,509 5,657 4,938 Voluntary personnel expenses 2,347 2,066 1,986 1,894 External administrative services 1,915 1,389 1,909 1,420 Other office and administrative expenses 9,043 6,343 7,725 5,634 Other construction expenses 76,087 43,470 71,693 41,559 Other operating costs 525 4,468 327 4,258 Other operating costs, total 96,479 63,245 89,297 59,703

The currency exchange rate at 31.12.2001: €1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 32 15.3.2002, 14:17 (€1,000) Group Parent Company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 1.7. Financial income and expenses Dividend income From Group companies 0 0 0 0 From others 35 14 35 14 35 14 35 14

Total income from investments included in assets, total 35 14 35 14

Other interest and financial income From Group companies 601 96 1,162 487 From others 329 130 269 77 930 226 1,431 564

Interest income from long-term investments included in assets and other interest and financial income, total 965 240 1,466 578

Interest expenses and other financial expenses From Group companies 8,219 3,687 8,226 3,684 From others 144 25 52 19 8,363 3,712 8,278 3,703 Exchange rate gains Calculated exchange rate gains 1,091 2,051 0 0 Realized exchange rate gains 466 811 37 5 1,557 2,862 37 5 Exchange rate losses Calculated exchange rate losses 697 970 0 106 Realized exchange rate losses 1,014 1,398 56 1 1,711 2,368 56 107

Exchange rate differences, net -154 494 -19 -102

Financial income and expenses, total -7,552 -2,978 -6,831 -3,227

1.8. Extraordinary items Group contributions received 58 259 Group contributions paid 3,269 265 Extraordinary items, total -3,211 -6

1.9. Appropriations

Difference between scheduled depreciation and depreciation in taxation 1,502 1,380 1,502 1,380

1.10. Direct taxes Income tax on actual business - for financial year 2,026 7,542 2,066 7,547 - for previous years 14 -1 14 -1 Change in deferred tax liability 101 428 0 0 Direct taxes, total 2,141 7,969 2,080 7,546

Tuloslaskelma s.25-41 ENG 33 15.3.2002, 14:17 NOTES TO THE FINANCIAL STATEMENTS

(1,000 €) 2.1. FIXED ASSETS/ GROUP 2.1.1.Intangible assets Intangible Consolidation Other long- rights Goodwill Goodwill term liabilities Total Acquisition cost 1 Jan. 3,008 10,142 18,396 871 32,417 Increases 1 Jan.-31 Dec. 443 504 893 6 1,846 Decreases 1 Jan-31 Dec -1,130 1,130 -3,789 0 -3,789 Acquisition cost 31 Dec. 2,321 11,776 15,500 877 30,474 Accumulated depreciation and write-downs 1 Jan. 1,427 5,135 701 451 7,714 Accumulated depreciation of decreases and appropriations -23 23 0 0 0 Depreciation for financial year 191 1,115 861 105 2,272 Accumulated depreciation 31 Dec. 1,595 6,273 1,562 556 9,986

Book value 31 Dec. 726 5,503 13,938 321 20,488

2.1.2.Tangible assets Advance paymets Land and Buildings and Machinery and Other tangible and construction water structures equipment assets in progress Total Acquisition cost 1 Jan. 479 1,169 39,537 325 453 41,963 Increases 1 Jan.-31 Dec. 169 824 11,280 2,052 8 14,333 Decreases 1 Jan-31 Dec 0 0 -1,771 0 0 -1,771 Acquisition cost 31 Dec. 648 1,993 49,046 2,377 461 54,525 Accumulated depreciation and write-downs 1 Jan. 0 108 15,408 9 0 15,525 Accumulated depreciation of decreases and appropriations 0 0 -1,193 0 0 -1,193 Depreciation for financial year 0 138 5,805 167 0 6,110 Accumulated depreciation 31 Dec. 0 246 20,020 176 0 20,442

Book value 31 Dec. 648 1,747 29,026 2,201 461 34,083

Consolidation reserve Acquisition cost 1 Jan. 53 Increases 1 Jan.-31 Dec. 0 Acquisition cost 31 Dec. 53 Accumulated income-recognition -53 Book value 31 Dec. 0

2.1. FIXED ASSETS/ PARENT COMPANY 2.1.1.Intangible assets Intangible Other long- rights Goodwill term liabilities Total Acquisition cost 1 Jan. 631 9,216 101 9,948 Increases 1 Jan.-31 Dec. 330 505 9 844 Decreases 1 Jan-31 Dec 0 0 0 0 Acquisition cost 31 Dec. 961 9,721 110 10,792 Accumulated depreciation and write-downs 1 Jan. 371 4,630 22 5,023 Accumulated depreciation of decreases and appropriations 00 0 0 Depreciation for financial year 142 896 12 1,050 Accumulated depreciation 31 Dec. 513 5,526 34 6,073

Book value 31 Dec. 448 4,195 76 4,719

The currency exchange rate at 31.12.2001: €1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 34 15.3.2002, 14:17 (€1,000) 2.1.2.Tangible assets Advance paymets Land and Buildings and Machinery and Other tangible and construction water structures equipment assets in progress Total

Acquisition cost 1 Jan. 257 645 28,451 312 453 30,118 Increases 1 Jan.-31 Dec. 169 780 9,842 2,052 8 12,851 Decreases 1 Jan-31 Dec 0 0 -1,645 0 0 -1,645 Acquisition cost 31 Dec. 426 1,425 36,648 2,364 461 41,324 Accumulated depreciation and write-downs 1 Jan. 0 100 10,983 0 0 11,083 Accumulated depreciation of decreases and appropriations0 0 -1,104 0 0 -1,104 Depreciation for financial year 0 88 4,298 167 0 4,553 Accumulated depreciation 31 Dec. 0 188 14,177 167 0 14,532

Book value 31 Dec. 426 1,237 22,471 2,197 461 26,792

The machinery and equipment of the Construction Division are included in the balance sheet item Machinery and equipment. In accordance with the relevance principle the balance sheet value of plant has not been separated from Machinery and equipment.

(€1,000) Group Parent company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 2.1.3.Investments Shares in Group companies Acquisition cost 1 Jan. 26,553 663 Increases 1 Jan.-31 Dec. 62 25,890 Decreases 1 Jan.-31 Dec. -3,005 0 Acquisition cost 31.12. 23,610 26,553

Shares in associated companies Acquisition cost 1 Jan. 1,170 354 650 350 Increases 1 Jan.-31 Dec. 21 831 21 300 Decreases 1 Jan.-31 Dec. -170 -15 0 0 Acquisition cost 31.12. 1,021 1,170 671 650

Stocks and shares in other companies Acquisition cost 1 Jan. 813 663 806 663 Increases 1 Jan.-31 Dec. 105 150 104 143 Decreases 1 Jan.-31 Dec. -2 0 -2 0 Acquisition cost 31.12. 916 813 908 806

Receivables from other companies Acquisition cost 1 Jan. 0 0 0 0 Increases 1 Jan.-31 Dec. 0 0 0 0 Decreases 1 Jan.-31 Dec. 0 0 0 0 Acquisition cost 31.12. 0 0 0 0

Investments, total 1,937 1,983 25,189 28,009

Tuloslaskelma s.25-41 ENG 35 15.3.2002, 14:17 NOTES TO THE FINANCIAL STATEMENTS

(€1,000) Book Shares in subsidiaries held by the parent company Quantity Holding % Currency Par value value Oy Läntinen Teollisuuskatu 15, Espoo 250 100% € 230 20,715 NCC International Oy, Helsinki 1) 7,965 99.56% € 167 2,564 Optiplan Oy, Turku 100 100% € 168 307 PMA-palvelut Oy, Helsinki 100 100% € 17 17 Puolimatkan LKV Oy, Vantaa 15 100% € 33 Vuorenvarma Ky, Vantaa 100% € 4 Shares in subsidiaries, total 23,610

Shares in associated companies held by the parent company Pääkaupunkiseudun rakennusjäte Oy 10,000 33.33% € 350 650 Arandur Oy 210 33.33% € 21 21

671 Shares in subsidiaries held by subsidiaries Interasfaltti Oy, Espoo 12,890 100% € 217 6,226 S-Planners Oy, Helsinki 5,000 100% € 870 Enertek Oy, Helsinki 1,000 100% € 17 428 NCC International Oy, Helsinki 1) 35 0.44% € 15 ZAO Rapko (Rapco Ltd), Moscow, Russia 10 100% RUB 0 0 ZAO NCC Projects, Moscow, Russia 100% USD 5 4 ZAO NCC, Moscow, Russia 100 100% RUB 10 1 ZAO NCC North-West, Russia 100 100% RUB 16 1 NCC Ehitus Oü, Estonia 1 100% EEK 40 2 Inrestauraator Ehitus Oü, Estonia 2 100% EEK 400 252 AS Optiplan Eesti, Estonia 40 100% EEK 200 13 UAB NCC Puolimatka, Lithuania 100 100% LTL 10 2 UAB Optiplanas, Lithuania 400 100% LTL 160 18 SIA NCC Konstrukcija, Latvia 10 100% LVL 2 286 SIA NCC Speks Investment, Latvia 22,560 60% LVL 451 1,359 SIA Intercommunications, Latvia 1 100% LVL 2 3

1) Group holding totals 100%.

Shares in associated companies held by a subsidiary KP-Kaupunkiprojektien Kehitys Oy, Helsinki 5 33.30% € 33 ZAO Eurolog Park Pulkov, Russia 29% USD 4 3 AS Baltifalt, Estonia 5,635 35% EEK 564 401

The currency exchange rate at 31.12.2001: €1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 36 15.3.2002, 14:17 (€1,000) Group Parent company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 2.2. CURRENT ASSETS 2.2.1.Inventory Materials and supplies 1,908 803 1,294 145 Work in progress 34,419 14,562 35,008 14,326 Plot-owning companies and plots 77,152 76,339 74,823 74,851 Shares in companies under construction 49,500 82,289 49,500 82,289 Shares in completed companies 33,619 13,421 33,619 13,421 Other inventory 78 64 78 64 Inventory, total 196,676 187,478 194,322 185,096

Income-recognition according to percentage of completion affects the balance sheet items as follows: Assets Work in progress 268,633 254,910 262,056 245,353 Less percentage of completion income recognition -234,214 -240,348 -227,048 -231,027 Work in progress 34,419 14,562 35,008 14,326

Liabilities and shareholders’ equity Advances received 282,531 289,103 271,231 279,467 Less percentage of completion income recognition -262,890 -264,420 -253,065 -256,412 Advances received 19,641 24,683 18,166 23,055

Receivables from and debts to housing associations and real estate holding companies Current Trade receivables 168 4,075 168 4,075 Loan receivables 58,833 22,577 58,833 22,577 Construction fund commitments 33,747 47,169 33,747 47,169

2.2.3.Current receivables Trade receivables 45,879 48,403 41,581 42,108

Receivables from Group companies Trade receivables 0 0 547 95 Loan receivables 369 0 9,758 10,175 Accrued assets 0 0 27 358 369 0 10,332 10,628 Receivables from Associated companies Trade receivables 53 0 0 0 Loan receivables 334 0 0 0 387 0 0 0

Loan receivables 58,964 23,264 59,028 22,784 Other receivables 260 286 260 286 Accrued assets 10,710 22,380 8,434 20,678 69,934 45,930 67,722 43,748

Current receivables, total 116,569 94,333 119,635 96,484

Tuloslaskelma s.25-41 ENG 37 15.3.2002, 14:17 NOTES TO THE FINANCIAL STATEMENTS

(€1,000) Group Parent Company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 Material items included in accrued assets Value-added taxes 2,794 1,121 1,147 855 Uninvoiced portion of projects handed-over and partially income-recognized 4,371 15,463 3,302 14,686 Personnel expenses 141 131 73 130 Group contributions received 0 0 58 259 Other accrued assets 3,404 5,665 3,881 5,106 Accrued assets, total 10,710 22,380 8,461 21,036

2.3. Shareholders’ equity Share capital Share capital 1 Jan. 5,964 4,955 5,964 4,955 Subscription issue 0 1,009 0 1,009 Share capital 31 Dec. 5,964 5,964 5,964 5,964

Share premium account Share premium account 1 Jan. 40,186 26,899 40,186 26,899 Subscription issue above par value 0 13,287 0 13,287 Share premium account 31 Dec. 40,186 40,186 40,186 40,186

Retained profits Retained profits 1 Jan. 33,820 15,305 30,922 13,476 Retained profits 31 Dec. 33,820 15,305 30,922 13,476

Net profit for financial year 4,291 18,515 3,136 17,446

Shareholders’ equity, total 31 Dec. 84,261 79,970 80,208 77,072

Distributable shareholders’ equity Retained profits 33,820 15,305 30,922 13,476 Net profit for financial year 4,291 18,515 3,136 17,446 Portion of accumulated depreciation difference entered in shareholders’ equity -4,728 -3,344 0 0 Total 33,383 30,476 34,058 30,922

2.4. Accumulation of appropriations Accumulated depreciation difference Buildings and structures Depreciation difference 1 Jan. -19 -1 Increase/ decrease 2-18 Depreciation difference 31 Dec. -17 -19

Machinery and equipment Depreciation difference 1 Jan. 4,021 2,623 Increase/ decrease 1,500 1,398 Depreciation difference 31 Dec. 5,521 4,021

Accumulated depreciation difference, total Depreciation difference 1 Jan. 4,002 2,622 Increase/ decrease 1,502 1,380 Depreciation difference 31 Dec. 5,504 4,002

The currency exchange rate at 31.12.2001: €1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 38 15.3.2002, 14:17 (€1,000) Group Parent Company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000 Division of accumulated appropriations between tax liability and shareholders’ equity Depreciation difference in separate companies’ financial statements 6,659 4,710 Deferred tax liability -1,931 -1,366 Portion of shareholders’ equity 4,728 3,344

2.5. Obligatory reserves Guarantee reserve 3,553 1,956 3,536 1,872 Contract loss reserve 73 146 49 122 Rent guarantee reserve 387 84 387 84 Other obligatory reserves 2,333 1,019 2,247 993 Total 6,346 3,205 6,219 3,071

2.6. LIABILITIES 2.6.1.Deferred tax liability and credits Deferred tax credits From matching differences 2,070 759 2,070 759

Deferred tax liability From appropriations 1,931 1,366 1,931 1,366

2.6.2.Non-current liabilities Debts to Group companies Other debts 25,728 25,728 25,728 25,728 Other debts 0 1 0 0 Non-current liabilities, total 25,728 25,729 25,728 25,728

2.6.3.Current liabilities Loans from financial institutions 908 40 0 0 Advances received 19,641 24,683 18,166 22,781 Trade payables 26,568 30,184 25,738 29,089

Debts to Group companies Advances received 0 0 0 274 Trade payables 56 357 455 817 Other debts 144,380 83,381 144,420 83,636 Deferred liabilities 2,084 1,212 5,403 1,686 146,520 84,950 150,278 86,413

Construction fund debts 33,747 47,169 33,747 47,169 Other debts 7,136 7,657 5,561 6,836 Deferred liabilities 36,849 43,409 34,014 40,434

Current liabilities, total 271,369 238,092 267,504 232,722

Tuloslaskelma s.25-41 ENG 39 15.3.2002, 14:17 NOTES TO THE FINANCIAL STATEMENTS

(€1,000) Group Parent Company 1.1.-31.12.2001 1.1.-31.12.2000 1.1.-31.12.2001 1.1.-31.12.2000

Material items included in deferred liabilities VAT and income taxes 1,653 5,893 1,113 5,767 Post-completion reserves on projects handed-over and partially income-recognized15,192 19,454 14,957 19,352 Personnel expenses 18,205 14,725 14,213 13,342 Group contribution paid 0 0 3,269 265 Other deferred liabilities 3,883 4,549 5,865 3,394 Deferred liabilities, total 38,933 44,621 39,417 42,120

2.6.4.Interest-bearing liabilities Current 145,288 83,422 144,380 83,636 Non-current 25,728 25,729 25,728 25,728 Total 171,016 109,151 170,108 109,364

2.7. CONTINGENT LIABILITIES

Loans 0 0 0 0

Pledges for own commitments Mortagages given Real estate mortagages 0 2,119 0 0 Company mortagages 0 2,102 0 0 Pledges given 0 5 0 5 0 4,226 0 5 Counter-commitment liabilities for own liabilities 80,807 74,087 73,438 67,382 for subsiadiary’s liabilities 0 0 7,369 6,705 80,807 74,087 80,807 74,087

Complete information on the financial statements is included in the official balance sheet book produced by the company.

The currency exchange rate at 31.12.2001: €1.134691 = USD 1

Tuloslaskelma s.25-41 ENG 40 15.3.2002, 14:17 THE BOARD’S PROPOSAL FOR ACTION ARISING FROM THE PROFIT/ LOSS FOR THE YEAR

The parent company’s distributable equity is €34,057,450.73. The Group’s distributable equity is €33,383,019.05, after the depreciation difference posted to the shareholders’ equity is deducted from the consolidated shareholders’ equity. The Board proposes to the annual general meeting that no dividend be paid and that the company’s net profit for the year, being €3,135,590.22, be posted to retained profits.

Vantaa, 18 February 2002

Matti Haapala Ulf Wallin Chairman

Jukka Lahtinen Timo U. Korhonen President

AUDITOR’S NOTE

The financial statements were drawn up in compliance with generally accepted accounting practice and the report on the audit carried out has been submitted today.

Vantaa, 20 February 2002

KPMG Wideri Oy Ab

Birger Haglund Authorized Public Accountant in Finland

AUDITOR’S REPORT

To the shareholders of NCC Finland Oy

We have audited the accounting records and misstatement. An audit includes examining, land. The financial statements give a true and the financial statements, as well as the adminis- on a test basis, evidence supporting the fair view, as defined in the Accounting Act, of tration by the Board of Directors and the amounts and disclosures in the financial state- both the consolidated and parent company Managing Director of NCC Finland Oy for the ments, assessing the accounting principles result of operations, as well as of the financial year ended 31 December 2000. The financial used and significant estimates made by the position. The financial statements can be statements prepared by the Board of Directors management, as well as evaluating the overall adopted and the members of he Board of and the Managing Director include the report financial statement presentation. The purpose Directors and the Managing Director of the of the Board of Directors, consolidated and of our audit of the administration has been to parent company can be discharged from lia- parent company income statements, balance examine that the Board of Directors and the bility for the period audited by us. The pro- sheets, cash flow statements and notes to the Managing Director have complied with the posal made by the Board of Directors on how financial statements. Based on our audit we rules of the Finnish Companies Act. to deal with the net profit for the year is in express an opinion on these financial state- In our opinion, the financial statements, compliance with the Finnish Companies Act. ments and the company’s administration. showing a profit of EUR 4,291,081.50 in the We have conducted our audit in accor- consolidated income statement and a profit Vantaa, 20 February 2002 dance with Finnish Generally Accepted Au- of EUR 3,135,590.22 in the parent company diting Standards. Those standards require that income statement, have been prepared in KPMG Wideri Oy Ab we plan and perform the audit in order to accordance with the Finnish Accounting Act obtain reasonable assurance about whether and other rules and regulations governing the Birger Haglund the financial statements are free of material preparation of financial statements in Fin- Authorized Public Accountant in Finland

Tuloslaskelma s.25-41 ENG 41 15.3.2002, 14:17 ADDRESSES

NCC Finland Oy REGIONS: NCC ROADS

Web site: www.ncc.fi Uusimaa, Etelä-Häme Region Asphalt: e-mail: P.O.Box 16, FIN-08201 Lohja [email protected] Visiting address: Interasfaltti Oy Kartanonkuja 1, Lohja Head Office Tel. +358-19-327 01 [email protected] - Property Development Fax +358-19-387 151 Läntinen teollisuuskatu 15 - Housing FIN-02920 Espoo - Contracting Southwest Finland Tel. +358-9-3486 300 - Internal Services P.O.Box 56, FIN-20101 Turku Fax +358-9-8531 481 - Development, Housing Visiting address: - Development, Business Kutomonkatu 1, Turku Machinery: Tel. +358-2-2606 111 P.O.Box 77, FIN-01601 Vantaa Fax +358-2-2310 666 ALTIMA Visiting address: Web site: www.altima.fi Jönsaksentie 4, Vantaa Western Finland P.O.Box 77, FIN-01601 Vantaa Tel. +358-9-507 51 P.O.Box 64 Visiting address: Fax +358-9-5075 262 FIN-33101 Tampere Visiting address: Myyrmäentie 2 A, Vantaa Hatanpään valtatie 26, Tampere Tel. +358-9-507 51 Tel. +358-3-2422 111 Fax +358-9-5075 402 Fax +358-3-2422 257 Building Design: Eastern Finland Hämeenkatu 26 A OPTIPLAN OY FIN-15140 Lahti Web site: www.optiplan.fi Tel. +358-3-8173 111 e-mail: Fax +358-3-8173 299 [email protected] Kutomonkatu 1 Northern Finland FIN-20100 Turku P.O.Box 343, FIN-90101 Oulu Tel. +358-2-2606 222 Visiting address: Fax +358-2-2310 111 Vanhantullinkatu 4, Oulu Tel. +358-8-3166 111 Fax +358-8-3116 559

42 International Operations: NCC AB

NCC Web site: www.ncc.se INTERNATIONAL OY e-mail: [email protected] P.O.Box 77, FIN-01601 Vantaa SE-170 80 Solna Visiting address: Visiting address: Vallgatan 3 Jönsaksentie 4, Vantaa Tel. +46 8 585 510 00 Tel. +358-9-507 51 Fax +46 8 857 775 Fax +358-9-5075 288

Moscow Office Ul. Giljarovskogo 4 129090 Moscow, Russia Tel. +7-095-2074 203 Fax +7-095-2086 303

St Petersburg Office See you tomorrow! Ul. Shpalernaya 36, room No 319 – Another good day’s work. 191123 St Petersburg, Russia Tomorrow we’ll do even better. Tel. +7-812-2799 329 Fax +7-812-3299 223

NCC Ehitus OÜ Rüütli 16/18 Tallinn 10130, Estonia Tel. +372-6274 880 Fax +372-6274 881 E-mail: [email protected]

Inrestauraator Ehitus OÜ Rüütli 16 Tallinn 10130, Estonia Tel. +372-6274 880 Fax +372-6274 881 E-mail: [email protected]

NCC Konstrukcija SIA Unijas 11a, Riga 1039, Latvia Tel. +371-7567 841 Fax +371-7567 486 E-mail: [email protected]

UAB NCC Statyba Rudninku 12-6 Vilnius 2001, Lithuania Tel. +370-2-608 307 Fax +370-2-608 308 E-mail: [email protected]

43 EXPECT A BIT MORE