INSIDE INFORMATION: HONKARAKENNE HAS COMPLETED THE CHANGE NEGOTIATIONS

    INSIDE INFORMATION: HONKARAKENNE HAS COMPLETED THE CHANGE NEGOTIATIONS 

HONKARAKENNE OYJ         Stock Exchange Release    Inside information 30 June 2023 at 11:00

INSIDE INFORMATION: HONKARAKENNE HAS COMPLETED THE CHANGE NEGOTIATIONS

Honkarakenne Oyj has concluded the change negotiations initiated in May, which concern the company's entire personnel, with the exception of the members of the Executive Board and the director of human resources.

In its meeting, the Executive Board has made decisions related to personnel reductions based on economic, productional and operational reorganization grounds. The number of personnel in domestic business, production and support functions, as well as work tasks, will be adjusted to reflect the current market and demand situation. In connection with the reorganization of production, the company evaluates the possible repatriation of subcontracted products.

At the start of the change negotiations, the company estimates the need to reduce personnel to be a maximum of 27 person-years. As a result of the decisions made in the company, 9 employees, 10 clerical employees and 3 senior clerical employees have been dismissed within the notice periods and they have been released from work. In addition, the terms of employment of 20 employees, 25 clerical employees and 9 senior clerical employees will be subject to substantial changes based on dismissal. Changes to the terms of the employment relationship will be implemented by the fall.

The company's layoff authorization applies to 56 employees, 56 clerical employees and 33 senior clerical employees. Layoffs can be implemented during 2023 and 2024 if the company's financial or production situation so requires.

As a result of the decisions and measures taken, the company will record costs of EUR 0.4 million due to redundancies, personnel costs and change security services in the income statement in June 2023. According to the company's definition, costs arising from reorganization are adjustment items that do not affect the company's adjusted result.

The cost savings achieved by negotiations and other actions during 2024 are estimated at EUR 1.6 million.HONKARAKENNE OYJ

Marko SaarelainenPresident and CEO

Further information:

Marko Saarelainen, President and CEO, tel. [phone], [e-mail] orMaarit Jylhä, CFO, tel. [phone], [e-mail]

DISTRIBUTION

Nasdaq Helsinki LtdKey mediaFinancial Supervisory Authoritywww.honka.com

Honkarakenne Oyj manufactures high-quality, healthy and ecological log homes, holiday homes and public buildings under its Honka® brand from Finnish solid wood. The company has delivered 85,000 buildings to over 50 countries. House kits are manufactured in Finland, the company's own factory is located in Karstula. In 2022, Honkarakenne Group's net sales were EUR 73.7 million, of which exports accounted for 26%. www.honka.com