Frequently asked questions
What are Lemminkäinen's business segments and sales split?
Lemminkäinen's operations are divided into four business segments: Paving; Infra projects; Building construction, Finland; and Russian operations.
The sales split by segment in 2016 was: Paving 44%, Infra projects 19%, Building construction, Finland 34% and Russian operations 3%.
What is Lemminkäinen's main market area and sales split?
Lemminkäinen's main market area is Finland, Scandinavia, Russia and the Baltic countries.
In 2016, 67% of Lemminkäinen's net sales came from Finland, 23% from Scandinavia, 3% from Russia and 7% from the Baltic countries.
What is Lemminkäinen's strategy?
Lemminkäinen seeks to continuously improve its performance and increase shareholder value through focus on the balance sheet, more competitive operating models and profitable growth in Infra projects in Northern Europe.
During the coming years, Lemminkäinen's target is to improve its competitiveness in all business segments and to build a solid foundation to enable profitable growth. We will implement best practices across segments and country borders in order to utilise economies of scale.
What are the Lemminkäinen's financial targets?
Lemminkäinen's financial targets are:
- ROCE above 15% in 2019
- EBIT margin above 4% in 2019
- Equity ratio above 35% during 2016-2019
The company aims at a stable distribution of dividends, with at least 40 per cent of the profit for the financial year distributed to the shareholders.
Who are the members of Executive Team of Lemminkäinen and what are their shareholdings?
Lemminkäinen's President and CEO is Casimir Lindholm and CFO is Ilkka Salonen. The other members of the Executive Team are Executive Vice Presidents Heikki Vuorenmaa (Paving), Jan Gustafsson (HR), Sari Inkilä (Strategy and Development), Harri Kailasalo (Infrastructure projects), Pauli Mäkelä (Building construction, Finland).
Who are the members of Lemminkäinen's Board of Directors and what are their shareholdings?
The members of Lemminkäinen's Board of Directors are Berndt Brunow (Chairman), Juhani Mäkinen (Vice Chairman), Noora Forstén, Finn Johnsson, Harri-Pekka Kaukonen, Heppu Pentti, Kristina Pentti-von Walzel and Heikki Räty.
What is the role of the Pentti family for Lemminkäinen?
The Pentti family own approximately 53% of all Lemminkäinen's shares. Three family members, Noora Forstén, Heppu Pentti and Kristina Pentti-von Walzel, are also members of Lemminkäinen's Board of Directors.
The company is not aware of any agreements between family members or any other shareholders that would have a significant bearing on the use of ownership rights or voting behaviour in the general meetings.
What is the role of Lemminkäinen's competitor, Peab AB, in the company?
According to a flagging notification received on 9 October 2017, the company no longer holds any Lemminkäinen Corporation's shares or votes.
Who are Lemminkäinen's customers?
|Paving||Public sector (government and municipalities), construction companies, industry and property owners|
|Infra projects||Public sector (government and municipalities), construction companies, private companies|
|Building construction||Private consumers, residential and other property investors, developers, leaseholders and owner-occupiers|
Who are Lemminkäinen's main competitors?
|Paving||NCC, Skanska, Veidekke, Peab, Colas.
In Russia, Lemminkäinen operates mainly as a subcontractor and specialised work contractor. Competitors include regional players, such as ABZ.
|Infra projects||NCC, Skanska, Veidekke, Peab, YIT, SRV, Destia.
In the Baltic countries smaller local competitors.
|Building construction||YIT, SRV, NCC, Bonava, Skanska.
In Russia, many local and smaller foreign competitors in contracting.
What kind of dividends Lemminkäinen pay?
Lemminkäinen aims for a stable distribution of dividends, with at least 40% of the profit for the financial year distributed to shareholders. Due to the financial situation of the company, no dividends were paid for 2013 and 2014.
The General Meeting resolved, in accordance with the Board of Directors' proposal, that for the financial year that ended on 31 December 2016, Lemminkäinen will pay a dividend of EUR 0.66 per share.
How much does Lemminkäinen spend on R&D yearly?
In 2016, the Group's research and development expenditure accounted for approximately 0.2 per cent of net sales.
What is the current situation with the asphalt cartel case and damage claims related to it?
On 20 October 2016, the Court of Appeal of Helsinki gave its decisions in the legal proceedings concerning the damages related to the asphalt cartel. Regarding the 37 claims against Lemminkäinen, Lemminkäinen and other asphalt industry companies are entitled to receive reimbursements in total approximately EUR 20 million (consisting of capital amount of approximately EUR 14 million less as well as interest and legal expenses of approximately EUR 6 million less than according to the decisions of the District Court).
Of these reimbursements, Lemminkäinen is entitled to receive refunds (based on Lemminkäinen's own share and those shares of other defendants that Lemminkäinen has paid) in total approximately EUR 19 million consisting of capital as well as interest and legal expenses. Lemminkäinen recorded the reimbursement as income in its fourth-quarter result in 2016.
Lemminkäinen has as such deemed the claims for damages unfounded. Lemminkäinen has requested leave to appeal from the Supreme Court concerning Helsinki Court of Appeal's decisions regarding those municipalities' claims, where the claimants' claims were partly accepted and where Lemminkäinen did not reach a settlement with the claimants after the Helsinki Court of Appeal's decisions. Lemminkäinen has settled with 17 municipalities. The parties agreed not to request leave to appeal from the Supreme Court concerning the Helsinki Court of Appeal's decisions.
On 13 January 2017, Lemminkäinen and the State of Finland settled the dispute concerning damages related to the asphalt cartel and both parties will withdraw their requests for leave to appeal and appeals from the Supreme Court. Therefore the decision made by the Helsinki Court of Appeal on 20 October 2016 will be final between the parties.
Concerning Lemminkäinen, there were still 13 pending requests for leave to appeal submitted by Lemminkäinen as well as 19 requests for leave to appeal submitted by municipalities in the Supreme Court concerning the Helsinki Court of Appeal's decisions on 20 October 2016 regarding damages related to the asphalt cartel.
On 6 September 2017, the Supreme Court announced that it has granted leave to appeal to Lemminkäinen and the city of Vantaa regarding the legal proceedings concerning the damages related to the asphalt cartel. According to the Supreme Court's decisions on 6 September 2017, the applications for leave to appeal of 14 other cities or municipalities concerning Lemminkäinen were dismissed entirely. The application for leave to appeal by the city of Espoo will await the decisions to be rendered in the cases where leave to appeal was granted.
In addition, Lemminkäinen has been served summons regarding 21 claims against Lemminkäinen and other asphalt companies for damages. The capital amount of these claims is approximately EUR 26 million. For these claims, Lemminkäinen has made a provision worth EUR 5.2 million based on the Court of Appeal of Helsinki's decisions.
Updated 2 October 2017