HONKARAKENNE ISSUES A PROFIT WARNING AND DOES NOT ISSUE A NEW GUIDANCE FOR YEAR 2020

HONKARAKENNE OYJ Inside information 21 April 2020 at 9:00 a.m.

HONKARAKENNE ISSUES A PROFIT WARNING AND DOES NOT ISSUE A NEW GUIDANCE FOR YEAR 2020

Honkarakenne issues a profit warning and does not issue a new guidance for year 2020.

The company's worse-than-expected earnings trend is affected by the global coronavirus pandemic, which is causing uncertainty in all of the company's market areas. Currently, the impact of the pandemic is particularly evident in export trade. In addition, the industrial action launched by the Industrial Union in January-February stopped work at company's factory and caused delays and postponements in deliveries. These delays and postponements have a negative impact, especially on Honkarakenne's first half-year result, but they are also expected to have a negative impact on the full-year result.

Because it is difficult to estimate the duration of uncertainty and all the effects on business caused by the coronavirus pandemic, Honkarakenne does not issue a new guidance for 2020.

For reference, on 27 February 2020 Honkarakenne issued the following guidance for 2020: In Honkarakenne’s view, both net sales and the result before taxes for 2020 will remain at the same level as in the previous year.

Honkarakenne’s half year financial report for January-June 2020 will be published on 20 August 2020.

HONKARAKENNE OYJ

Marko Saarelainen

President and CEO

Further information:

Marko Saarelainen, President and CEO, tel. +358 (0)40 542 0254, or

Leena Aalto, Vice President - Finance, CFO, tel. +358 (0)40 769 4590,

DISTRIBUTION

NASDAQ OMX Helsinki

Key media

Financial Supervisory Authority

Under its Honka® brand, Honkarakenne manufactures high-quality, healthy and ecological detached houses, holiday homes and public buildings using Finnish solid wood. The company has delivered 85,000 buildings to more than 50 countries. House packages are made in Finland, the companys’s own factory is located in Karstula, Finland. In 2019, the Honkarakenne Group had net sales of MEUR 47.5, of which exports accounted for 34%.