AS Eesti Ehitus as an issuer on the NASDAQ OMX Tallinn Stock Exchange has
released this company announcement to inform of the decisions made by the
supervisory board of AS Eesti Ehitus on matters requiring disclosures as per
exchange regulations.
Changes in management structures of Group companies
The management board of parent company AS Eesti Ehitus initiated in April 2008
Eesti Ehitus group (Group) strategy review process. The goals of this process
were to describe the current situation of the operating activities and markets
the Group is involved in and to renew the Group's strategic plan for the years
2009 to 2013. As the first stage of the strategy renewal process the management
of AS Eesti Ehitus has decided to implement changes in the management
structures of Group companies.
The new management structures have been based on the following principles:
- The construction market and economy as a whole has witnessed substantial
changes in the external environment that influence directly the performance of
Group companies. It is therefore necessary on Group and individual companies
level to implement changes in business operations;
- Specializing the Group companies by their core competencies enables to
concentrate know-how under one management and thus capitalize more on their
competitive advantages;
- Developing group-wide centralized support functions enables to increase
overall efficiency of operations;
- Changes in Group companies management structures are necessary to strengthen
positions in the tightened market situation and also to continue strategic
development in the currently set timeframe from 2009 to 2013;
- The Group needs to continue expansion on the selected foreign markets.
Pursuant from the aforementioned principles the supervisory board of AS Eesti
Ehitus has decided on 28 November 2008 to change the management structure
of the issuer. The decisions of the supervisory board are:
1. To recall prematurely from their positions as members of the management board
Mr Avo Ambur (Development Director) and Mr Priit Pluutus (Technical Director)
and consider their mandates expired as members of management board as of 31
December 2008;
2. To consider Mr Erkki Suurorg's mandate as member of management board expired
as of 30 November 2008 due to normal ending of service contract;
3. To appoint Mr Priit Tiru (currently chairman of the management board of AS
Linnaehitus, a Group subsidiary) as a new member of management board (Buildings
Segment Director) of AS Eesti Ehitus. Mr Tiru's mandate as a member of
management board shall begin as at 5 January 2009. Additional information on
the new member of the management board is attached to the company announcement.
The chairman of the management board Mr Jaano Vink and member of the management
board Mr Sulev Luiga (Financial Director) will continue on their current
positions in the management.
As of 5 January 2009 Mr Margus Vaim, currently acting as the chairman of the
board of the Group company AS ASPI, will become the new Infrastructure Segment
Director (a non-executive director) of AS Eesti Ehitus.
Under new management structure of AS Eesti Ehitus board members Mr Jaano Vink
and Mr Sulev Luiga will concentrate firstly on the development of the Group as
a whole and adding efficiency on centralized group-wide support functions.
Board member Mr Priit Tiru and director Mr Margus Vaim will focus on strategic
management and development of Group core business operations and expansion
activities on foreign markets of buildings and infrastructure segments
respectively.
Former management board members of AS Eesti Ehitus Mr Avo Ambur, Mr Priit
Pluutus and Mr Erkki Suurorg will continue their participation in Group's
management structure and will be appointed to the management boards of key
Group subsidiaries.
Changes in Group's subsidiaries management structures
As of 28 November 2008 simultaneously with changes in parent company AS Eesti
Ehitus, changes in management structures in Group subsidiaries AS ASPI, AS
Linnaehitus and OÜ Mapri Projekt have been approved. Effective as of 5 January
2009 the new management structures of subsidiaries are the following:
AS ASPI new management board
Erkki Suurorg - chairman of the management board (previously member of
management board of AS Eesti Ehitus)
Priit Pluutus - member of management board (previously member of management
board of AS Eesti Ehitus)
Tarvi Miilits - member of management board
Heikki Pormeister - member of management board
Jaanus Taro - member of management board
AS Linnaehitus new management board
Priit Jaagant - chairman of the management board (previously chairman of the
management board of OÜ Mapri Projekt)
Avo Ambur - member of management board (previously member of management board
of AS Eesti Ehitus)
Raul Ojala - member of management board (previously a division manager in AS
Eesti Ehitus)
Marko Raudsik - member of management board
Kaido Somelar - member of management board
OÜ Mapri Projekt new management board
Toomas Toompuu - member of management board
Mait Rõõmusaar - member of management board
Eesti Ehitus is a group of construction companies whose core business is
general contracting and construction management in the construction of
buildings and infrastructures in Estonia, Latvia, Lithuania and Ukraine. In
addition, in Estonia our companies act as independent contractors in road
construction and maintenance, environmental engineering, the assembly of
reinforced concrete elements, and the performance of cast-on-site concrete
works. The parent of the Group is AS Eesti Ehitus, a company registered and
located in Tallinn, Estonia. In addition to the parent company, there are more
than 20 subsidiaries in the Group. The consolidated revenue of the Group in
2007 was 3.8 billion kroons (240 million euros) and the consolidated net profit
was 290 million kroons (19 million euros). AS Eesti Ehitus Group employs more
than 1200 people. Since 18 May 2006, the company's shares have been quoted in
the main list of the NASDAQ OMX Tallinn Stock Exchange.
1 EUR = 15.6466 EEK
Raimo Talviste
AS Eesti Ehitus
Head of Investor Relations
Tel: +372 615 4403
Email: raimo.talviste@eestiehitus.ee
www.eestiehitus.ee
