What is the merger about?
• The combination will create a financially strong company with urban development as the engine for growth and profitability. The companies’ business areas will complement and balance each other and decrease sensitivity to economic cycles.
• The combination is a strategically important step for both companies, creating a platform for growing into one of the leading urban developers in the Northern European construction market.
• For the personnel, the combination will open up better career opportunities in a bigger company. We expect the combined company to remain an attractive employer for current and future professionals.
Why is the merger done now?
• The owners of both companies had similar interests; both companies were seeking growth and aiming to create a stronger company.
• Both companies have streamlined their businesses, focusing on profitability and strengthening the balance sheet. Both are now ready for the next strategic step, growth.
• Availability of resources has lately been a bottleneck, and competition for professionals is tough. As a bigger company, we will be a more attractive employer.
What is the benefit of combining two construction companies with roughly the same expertise and businesses?
• The businesses of both companies complete and balance each other. In the end, there is little overlap. Also the geographical presence will be more balanced with the new company.
• At the moment, lack of professionals has been the biggest obstacle to growth. In the new company, there are approximately 10,000 professionals. We believe that the size of the company and the new career opportunities will attract also new professionals.
• Bigger company size will enable additional financing opportunities, which will mean that together it will be easier to start projects than as separate companies.
• The size also enables specialization and agility, since smaller units or so-called start-up hubs can exist within the large organization.
Which businesses of YIT and Lemminkäinen overlap and complement each other?
• Especially Lemminkäinen’s paving business, large building construction contracts, renovation and infrastructure construction in the Baltic countries complement YIT’s current offering.
• YIT’s residential development and non-residential contracting as well as large and challenging PPP and alliance projects will benefit from new professionals.
Do you plan to sell some overlapping businesses of the companies?
• We have no such plans at the moment.
Where in particular will you be seeking growth?
• Project development in growth centers will be our motor for growth.
• We will also carefully evaluate growth potential outside Finland.
The combined company plans to gain from larger geographical presence. How will the new YIT enhance its Nordic presence?
• Scandinavia (Sweden, Norway and Denmark) covers only approximately 10% of the Group’s net sales. We see good growth potential in Scandinavia, significantly complementing and balancing our existing market.
How will Lemminkäinen’s paving business support YIT’s vision ”More life in sustainable cities”?
• Paving is an important part of infrastructure construction that we do for developing a sustainable living environment. It has a major role in large projects requiring expertise of several construction sectors such as building construction and infra construction. Cities need infrastructure to operate and connections between growth centers. For example, infrastructure construction capabilities were crucial for the big “Tripla” and “Lauttis” projects in Helsinki.
What does the new Partnership Properties business area mean?
• The Partnership Properties business is meant to improve the Group’s growth potential through new business models, to clarify the reporting of partnership-based projects and to enable a project portfolio creating a steady cash flow.
How big synergy benefits is the combined company targeting?
• We estimate the total annual synergies to be EUR 40 million, and we estimate them to materialize fully by the end of 2020.
• We estimate to reach most of the planned synergies by reducing administrative costs, developing procurement, streamlining the organization and harmonizing processes and practices.
Which are the sources of the announced EUR 40 million synergies and when do you expect to reach them?
• After the merger there will be only one listed company, which will mean only one set of costs for the Board of Directors, top management, auditing, insurances and other administration.
• In a larger company we will get benefits of scale for expensive IT projects, when more users will be able to use the systems.
• There are possibly some overlapping functions in group functions and some regional units. After the merger it will make sense to review the use of resources as well as combining operations, best practices, operational models and use of common tools.
• We believe that a significant part of the synergies will however come from speeding up growth thanks to stronger financial resources and from accelerating the rotation cycle of the plot reserve by utilizing new resources on site.
• We estimate full cost synergies to materialize by the end of 2020.
The Board of Directors, CEO and CFO of the combined company have been appointed. When will the nominations of other key positions be communicated?
• Matti Vuoria is the Chairman of the Board of the combined company and Berndt Brunow is the Vice-Chairman. Other members of the Board are Erkki Järvinen, Tiina Tuomela, Inka Mero, Harri-Pekka Kaukonen, Juhani Mäkinen and Kristina Pentti-von Walzel.
• Kari Kauniskangas is the CEO of the new company and Ilkka Salonen is the CFO.
• Next the Board will appoint other top management.
How is the planning for the organization and operating models of the new company proceeding?
• In the new company, planning the organization and operating models will be started immediately.
• Employee representatives will participate in the planning as soon as possible.
• The goal is to have the new organization ready by the end of 2018.
• We will keep you informed about how the planning is proceeding.
What will happen to Lemminkäinen’s employees?
• The persons currently employed by Lemminkäinen Oyj will transfer to YIT Oyj as so called ”old employees”.
• The persons currently employed by the subsidiaries of Lemminkäinen Oyj will continue to be employed by the same subsidiary as before. These subsidiaries will become subsidiaries of YIT Oyj.
• The names of the Finnish subsidiaries will change. Lemminkäinen Talo Oy will change its name to YIT Talo Oy and Lemminkäinen Infra Oy to YIT Infra Oy. The subsidiary name change will have no impact on existing work contracts.
• In Estonia, Latvia, Lithuania, Sweden, Norway, Denmark and Russia, the processes of changing the subsidiaries’ names would begin directly after the planned combination has been implemented.
• For everyone currently employed by Lemminkäinen, the terms of employment will remain unchanged at merger.
What does ”transferring as an old employee” mean?
• “Transferring as an old employee” refers to a principle according to which an employee’s rights and obligations will remain as before despite the fact that the employer changes.
• The duration of Lemminkäinen’s employees at YIT will have started from the date when their employment at Lemminkäinen began.
What will happen to YIT’s employees?
• There will be no changes in the terms of employment for those currently employed by YIT.
How many are expected to be laid off and when will the lay-offs begin?
• In the new company, planning the organization and operating models will be started immediately.
• At the moment it is too early to estimate whether lay-offs may occur, when and how many.
• There will no doubt be changes in several job profiles.
• We are targeting growth enabled by the current market, and for that we will need additional personnel.
• We want to keep our professionals and offer our people interesting assignments around the organization. From the personnel this requires readiness for change and willingness to move. However, it is likely that there are some overlapping roles in both group functions and in the business line organizations that may require assessing rational alternatives in the future.
• The new company’s business areas are significant players even on a standalone basis and need professionals. The merger will thus also create new, interesting roles and opportunities for the personnel.
Which functions will be affected by the potential changes and lay-offs?
• In the new company, planning the organization and operating models will be started immediately.
• At the moment it is too early to estimate whether lay-offs may occur, when and how many.
• There will no doubt be changes in several job profiles.
• It is likely that there are some overlapping roles in both group functions and in the business line organizations that may require assessing rational alternatives in the future.
Shortage of employees and availability of professionals are a main reason for the merger. How will you ensure that that the employees will stay in the new company?
• We believe that the size of the new company and the increased number of versatile career opportunities will be of interest to our existing and new professionals.
• The new YIT will invest in personnel also through training, among other things.
• We will also take best practices into use in induction, training concepts, mentoring etc.
How will recruiting be organized in the new company?
• For the new YIT, our professionals are a strategic competitive factor. We will offer even more interesting positions for construction and business professionals.
• We will take the best practices of both companies into use and offer the job seekers a pleasant recruiting experience. Open positions are published on our web pages and internal positions in Pulse and Yammer.
How should I reply to people looking for a summer job at YIT?
• Professionally planned and implemented recruitment of summer trainees is our strategic choice in the competition for new professionals.
• HR supports superiors in hiring trainees and summer workers.
How will health care be organized?
• There will be no changes in health care or sick leave practices. In Finland, Mehiläinen will continue to be the health care supplier for YIT’s current personnel; for Lemminkäinen, Terveystalo will continue as before. There are some differences between the practices at YIT and Lemminkäinen, and we plan to harmonize them in 2018.
Which offices will remain in the cities where we operate?
• Planning for the office locations is ongoing, and we will share information on the plans as soon as possible.
Which IT systems will be used in the new company?
• Those who have had a Lemminkäinen email address will move into YIT’s Office 365 environment and receive a YIT email, calendar and address book.
• Other IT tools, software and files will remain as they were.
• ICT will evaluate current systems and choose the best alternatives to support the business.
• We will share information on the plans as soon as possible.
Will happen to the intranets?
• Those who have had a Lemminkäinen email address will get access to YIT’s intranet called Pulse (pulse.yitgroup.com).
• Updates in Lemminkäinen’s intranets will be discontinued when the companies are combined, and all topical information can be found in Pulse.
• Lemminkäinen’s intranets in all countries will be closed down in 2018. The schedule will be agreed locally in the beginning of 2018.
How will we communicate about the merger to the personnel?
• We will continue to regularly share information on how the integration is progressing.
• The main communications channel is Pulse. Follow the news in the intranet!
How will we communicate about the merger to our customers and stakeholders?
• All stakeholders have been informed about the merger.
• If customers, business partners, family members or friends ask you about the planned merger, you can tell them the following things:
What should I do if I see Lemminkäinen’s logo in use after the merger?
• Lemminkäinen and YIT have merged. Lemminkäinen’s logo will no longer be used, and it will be replaced with YIT’s logo. You are allowed to start using YIT’s logo immediately. Everyone should for their part see to that Lemminkäinen’s logo is no longer visible.
• If you have any questions concerning the brand change, please contact Kristina Broman (kristina.broman@yit.fi) or Pauliina Pykälä (pauliina.pykala@yit.fi) or your local communications.
Who is allowed to comment the planned combination to media?
If you receive questions from the media regarding the combination, please forward them to YIT press desk: press@yit.fi or phone +358 44 743 7536
See your local contact details here
Finland
INTO integration phone service: 09 6899 8585.
(open on Feb 5 – Feb 16 at 8 - 12, local time)
Or send an email: integration@yit.fi
Lemminkäinen IT Help desk
• sd.lemminakinen@tieto.com OR
• tel: +358 20 71 53465
YIT IT Service desk
• https://fast.fujitsu.fi
• Service number: +358 20 433 2800 (mon-fri at 7- 17)
• Customer service at IT Service Desk is open at YIT Head quarter, (2nd floor), Helsinki, from 8 to 16, or phone +358 50 390 1696.
Sverige
HR
Liljana Vall - liljana.vall@lemminkainen.com, tel. +46 702 96 07 19.
Efter sammanslagningen liljana.vall@yit.se
COMMUNICATION
Susana Friberg – susana.friberg@lemminkainen.com, tel. +46 708 62 01 28.
Efter sammanslagningen susana.friberg@yit.se
TELEFONI OCH ID06
Susanne Karlsson – sunsanne.karlsson@lemminkainen.com, tel.+46 761 25 19 64.
Efter sammanslagningen susanne.karlsson@yit.se
IT
Tieto Service Desk - sd.lemminkainen.swe@tieto.com, tel. +46 77 116 51 65
Norge
HR
HR-Sjef, Hans Erik Guin, hans.erik.guin@lemminkainen.no
IT
IT-Sjef, Gunnar Tronstad, gunnar.tronstad@lemminkainen.no
Logo og profilering:
Markeds- og Kommunikasjonsdirektør, Tom Andre Aas, Tom.Andre.Aas@lemminkainen.no
Danmark
Marketings- og indkøbschef, Bo Lund Sørensen. Tlf.nr. 2141 1742. Email bls@lemminkainen.dk
IT Chef Daniel Frost. Tlf.nr. 8722 1506. Email dfr@lemminkainen.dk
HR Chef Randi Lildballe. Tlf.nr. 8722 1523. Email. rli@lemminkainen.dk
Estonia
Personalijuht
Merike Pillesson Tel. +372 5590 3220, lühi nr 3220 e-post merike.pillesson@lemminkainen.ee
IT spetsialist
Märt Mölder, tel. +372 5645 2987, lühi nr 3987 e-post mart.molder@lemminkainen.ee
Pulse Eesti
www.yit.ee
Latvija
HR
Kristina Ivanova, kristina.ivanova@lemminkainen.com; +371 22024074
IT
Kaspars Priedītis, kaspars.prieditis@lemminkainen.com; +371 26301320
YIT
Pulse intranet Latvija
www.yit.lv
Lietuva
Ramunė Bikelienė, personalo administratorė ramune.bikeliene@lemminkainen.com / yit.lt,
tel. +370 615 96010
Kęstutis Kusas, darbų saugos ir sveikatos specialistas kestutis.kusas@lemminkainen.com / yit.lt,
tel. +370 616 36560
BTT, IT paslaugos servisas@btt.lt,
tel. +370 5 203 4380
Aurelija Majauskienė, projekto administratorė aurelija.majauskiene@lemminkainen.com / yit.lt,
tel. +370 616 40494
YIT
Pulse intranet Lietuva
www.yit.lt
Россия
ЛЕММИНКЯЙНЕН
ОТДЕЛ ПЕРСОНАЛА
Ольга Крылова
Директор по персоналу
Тел. + 7 (812) 718 34 86
olga.krylova@yit.ru
ОТДЕЛ МАРКЕТИНГА
Ольга Семенова-Тян-Шанская
Директор по маркетингу
Тел. + 7 (812) 718 34 86
olga.semenova@yit.ru
ОТДЕЛ ИТ
Александр Пендорф
Начальник отдела информационных технологий
Тел. + 7 (812) 718 34 86
alexander.pendorf@yit.ru
ЮИТ
Служба по персоналу
Алексей Устинов
Директор по персоналу
Тел. +7 (921) 941 9214
aleksey.ustinov@yit.ru
Маркетинг и продажи
Венла Лаакконен
Директор по маркетингу и продажам
+358 50 390 1655
venla.laakkonen@yit.fi
СЛУЖБА ПО КОММУНИКАЦИЯМ
Катья Тиитинен
Руководитель по коммуникациям
Тел. +358 50 595 4407
katja.tiitinen@yit.fi
Служба ИТ
Сергей Сафонов
Генеральный директор ООО «ЮИТ Информационные системы»
+7 (915) 449 7393
sergey.safonov@yit.ru