HONKARAKENNE OYJ Stock Exchange Release Inside information 12 December 2025 at 16:45

Inside information: HONKARAKENNE HAS COMPLETED THE CHANGE NEGOTIATIONS

Honkarakenne Oyj has concluded the change negotiations initiated in November, which concerned the company’s entire personnel, excluding members of the Executive Group and employer representatives participating in the process.

In its meeting, the Executive Group has made decisions related to personnel reductions on economic, production-related and operational reorganization grounds. The decisions concern adjustments to the number of personnel and work tasks in business areas, design, project management, production and maintenance, as well as marketing, to align with the current business needs.

At the start of the negotiations, the company estimated the need for personnel reductions to be a maximum of 19 person-years. As a result of the decisions made, up to three employees, one clerical employee and three senior clerical employees will be dismissed within the applicable notice periods. The dismissals are intended to be implemented by 17 December 2025. In addition, the terms of employment of two clerical employees and seven senior clerical employees will be subject to substantial changes based on dismissal grounds. These changes will be implemented by the end of January 2026.

The company’s layoff authorization applies to 49 employees, 42 clerical employees and 43 senior clerical employees. When making decisions, the Executive Group considered the personnel representatives’ request for longer layoffs and a higher number of part-time layoffs as an alternative to dismissals. The Executive Group also took into account the natural retirement attrition expected during 2026, which reduced the number of dismissals compared to the preliminary plan presented in the negotiations.

Layoffs may be implemented during 2026 and early 2027 if the company’s financial or production situation so requires.

As a result of the decisions and measures taken, the company will record adjustment items of EUR 0.1 million in the income statement due to redundancies, personnel costs and change security services. The personnel cost savings achieved through negotiations and other actions during 2026 are estimated at EUR 1.1 million.

HONKARAKENNE OYJ

Marko Saarelainen

President and CEO

Further information:

Marko Saarelainen, President and CEO, tel. +358 40 542 0254, marko.saarelainen@honka.com or

Maarit Jylhä, CFO, tel. +358 40 594 4099, Maarit.jylha@honka.com

DISTRIBUTION

Nasdaq Helsinki Ltd

Key media

Financial Supervisory Authority

www.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 90,000 buildings to over 50 countries. House kits are manufactured in Finland, the company's own factory is located in Karstula. In 2024, Honkarakenne Group's net sales were EUR 36.7 million, of which exports accounted for 29 %. www.honka.com