Slide 1: Lassila & Tikanoja Result Presentation 2023
LASSILA & TIKANOJA RESULT PRESENTATION 2023 Eero Hautaniemi, President & CEO Valtteri Palin, CFO 9 February 2024
Slide 2: In Focus in 2023
IN FOCUS IN 2023 • Adjusted operating profit was EUR 39.0 million (40.9) • Strong result in Industrial Services. The operating profit of Facility Services Finland improved due to efficiency measures and streamlined cost structure • In Environmental Services the challenging economic environment reduc
Slide 3: Net Sales
NET SALES -5.0% (Organic growth -0.9%) -3.5 9.0 844.1 -6.3 -7.2 1.4 802.1 -35.4 Group Environmental Industrial Facility Services Facility Services Other Renewable Group 2022 Services* Services Finland Sweden*** energy 2023 sources** MEUR Q4/23 Q4/22 Change% 2023 2022 Change% Environmental Services*
Slide 4: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT -4.7% -3.2 0.4 5.0 40.9 -4,1 -0,0 39.0 Adjusted operating Environmental Industrial Facility Services Facility Services Other Adjusted operating profit 2022 Services Services Finland Sweden profit 2023 MEUR Q4/23 Q4/22 Change% 2023 2022 Change% Environmental Services* 3.6 6.
Slide 5: Environmental Services
ENVIRONMENTAL SERVICES EXCL. RENEWABLE ENERGY SOURCES • The challenging economic environment reduced waste volumes and secondary raw material prices which had a negative effect of EUR 4.5 million on operating profit • Municipalisation of residential packaging waste collection continued in cities wer
Slide 6: Residential Properties Market Development and Municipal Competitive Tendering
THE RESIDENTIAL PROPERTIES MARKET DEVELOPMENT AND MUNICIPAL COMPETITIVE TENDERING Municipal competitive tendering market Residential properties market Municipal competitive tendering market Municipal competitive tenders ~ EUR 70 million in 2022 Residential properties (free competition) • In 2022-202
Slide 7: Industrial Services
INDUSTRIAL SERVICES • Net sales grew in all business lines despite challenging business environment • In environmental construction, market share grew particularly in demanding industrial soil remediation projects • Customer volumes increased in hazardous waste • Resourcing of annual maintenance bre
Slide 8: Facility Services Finland
FACILITY SERVICES FINLAND • The measures started in the latter half of 2022 to streamline the cost structure and improve operational efficiency continued successfully • Data-driven cleaning services expanded, as did energy efficiency consulting and services -2.5% 256,3 250,0 MEUR Q4/23 Q4/22 Change%
Slide 9: Facility Services Sweden
FACILITY SERVICES SWEDEN • The division has a programme ongoing to simplify operating models and adapt them to the changed business environment • The challenging economic environment affected customer demand negatively and fewer new customer projects were started in Q4 -5.1% MEUR Q4/23 Q4/22 Change%
Slide 10: Sustainability Highlights in 2023
SUSTAINABLITY HIGHLIGHTS IN 2023 TOWARDS NET-ZERO EMISSIONS BIODIVERSITY APPROACH BROADENED • Biodiversity services portfolio to customers • Net-zero emissions by 2045 target set in Q4 broadened • Scope 1 & 2 emissions declined by 9.5% • Recovery of more than 512,000 tonnes of industrial side • Shar
Slide 11: Sustainability Score Card 2023
SUSTAINABILITY SCORE CARD 2023 Target Target Target L&T 2018 2019 2020 2021 2022 2023 2023 2026 2030 RECYCLING RATE 54.2 54.8 58.6 58.4 59.4 57.8 59.5 65 70 CARBON FOOTPRINT (tCO2-ekv) 47,400 43,100 36,700 37,800 34,200 31,200 32,900 24,400 CARBON HANDPRINT (MCO2-ekv) -569.2 -526.6 -506.8 -524.9 -53
Slide 12: Key Figures
KEY FIGURES Q4/23 Q4/22 Change % 2023 2022 Change % Capital expenditure, MEUR 15.1 12.4 21.8 61.1 58.2 4.9 Share of business acquisitions in capital expenditure, - 21.5 MEUR Depreciation, amortisation and impairment, MEUR 13.8 13.6 2.0 57.4 55.4 3.7 Share of result of associated companies & joint ve
Slide 13: Net Working Capital
NET WORKING CAPITAL Q1/22* Q2/22* Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 0,0 -5,0 -4.1 -2.8 -3.5 -5.6 -4.6 -6.1 -5.1 -5.9 -10,0 -15,0 -20,0 -25,0 -22.5 -30,0 -28.5 -35,0 -35.3 -40,0 -37.5 -45,0 -41.6 -50,0 -46.8 -47.6 -49.5 -55,0 -60,0 Net working capital, MEUR Net working capital, % of net sales Net w
Slide 14: Net Cash Flow and Net Investments
NET CASH FLOW AND NET INVESTMENTS 60,0 50.9 50,0 -42.7 41.1 40,0 -37.8 -30.6 -30.4 30,0 -27.4 28.1 -19.8 19.2 19.3 -19.2 20,0 10,0 -7.7 1.0 0,0 -6.0 -4.9 -10,0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Net cash from operating activities after investments YTD, MEUR Net cash used in investment a
Slide 15: Interest Bearing Debt and Liquidity
INTEREST BEARING DEBT AND LIQUIDITY 250 200 70 70 73 72 75 76 74 150 78 100 165 160 144 148 144 134 126 116 50 50 48 22 34 30 30 26 33 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Interest bearing debt, MEUR IFRS 16, MEUR Liquid assets, MEUR © Lassila & Tikanoja plc | Q4/2023 9 February 2024 19
Slide 16: Maturity Structure of Loans
MATURITY STRUCTURE OF LOANS L&T has repaid the remaining amount of EUR 17.7 million of the bond issued in 2018 and reduced its bank loan by EUR 10.0 million in connection with the refinancing Loans, MEUR Weighted average of effective interest rate 4.0% (2.5%) 80 70 60 50 35 % 40 75 30 20 40 10 65 %
Slide 17: IT Investments on a High Level Between 2022-2024
IT INVESTMENTS ON A HIGH LEVEL BETWEEN 2022-2024 DUE TO MODERNISATION OF END-OF-LIFE SYSTEMS Environmental Services systems renewal including ERP Planning Design Build Test & rollout Facility Services Sweden ERP upgrade HR & Finance system renewals Facility Services Industrial Services ERP renewal i
Slide 18: Outlook for 2024
OUTLOOK FOR 2024 Net sales in 2024 are estimated to be at the same level as in the previous year, and operating profit is estimated to be at the same level or better compared to the previous year. Q4/2020 & FY 2020 9 February 2024 22
Slide 19: Contacts
CONTACTS Eero Hautaniemi, CEO +358 10 636 2810 eero.hautaniemi@lassila-tikanoja.fi Valtteri Palin, CFO +358 40 734 7749 valtteri.palin@lassila-tikanoja.fi © Lassila & Tikanoja plc | Q4/2023 9 February 2024 23
Slide 20: Shareholders
SHAREHOLDERS
Slide 21: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 25 228 25 121 25 218 24 959 24 557 23 088 Others 34% 20 732 Households 42% 15 524 13 207 12 208 10 812 Foreign and nominee registered 11% Financial and 2016 2017 2018 2019 2020 2021 2022 Q1/23 Q2/23 Q3/23 Q4/23 insurance corp. 13% ©
Slide 22: Major Shareholders on 31 December 2023
MAJOR SHAREHOLDERS ON 31 DECEMBER 2023 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Funds Ltd 1,685,538 4.34 Mandatum Life Insurance Company Limited 1,547,264 3.99 Maijala Juhani 1,529,994 3.94 Åbo Akademi University Foundation 1,066,282 2.75 Bergholm Heikki 875,000
Slide 23: Appendix
APPENDIX
Slide 24: Key Figures
KEY FIGURES NET SALES Q4/2023 Q4/23 Q4/22 Change% 2023 2022 Change% Net sales, 200.9 210.1 -4.4 802.1 844.1 -5.0 19 % MEUR 33 % EBITDA, 20.5 26.5 -22.7 95.8 98.3 -2.6 MEUR Operating 6.7 12.9 -48.6 38.4 42.9 -10.6 17 % 200.9 profit, MEUR MEUR Operating 3.3 6.2 4.8 5.1 margin, % Earnings per 0.14 0.29
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Slide 27: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _