Slide 1: Lassila & Tikanoja Interim Report Q1/2025
LASSILA & TIKANOJA INTERIM REPORT Q1/2025 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 29 April 2025
Slide 2: In Focus Q1/2025
IN FOCUS Q1/2025 The preparations for Improved profitability Strong cash flow the partial demerger in Facility Services and efficiency programme © Lassila & Tikanoja plc | Q1/2025 29 April 2025
Slide 3: Net Sales
NET SALES -5.1% (Organic growth -5.2%) 185.0 -3.5 -4.9 -1.1 0.1 175.5 Group Circular Economy Facility Services Facility Services Other Group 1-3/2024 Business Finland Sweden 1-3/2025 MEUR Q1/25 Q1/24 Change% 2024 Circular Economy Business 89.5 93.0 -3.8 424.0 Facility Services Finland 58.3 63.3 -7.8
Slide 4: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 0,6 -0.2 2.3 2.7 0.0 -0.1 Adjusted operating Circular Economy Facility Services Facility Services Adjusted operating Other profit 1-3/2024 Business Finland Sweden profit 1-3/2025 MEUR Q1/25 Q1/24 Change% 2024 Circular Economy Business 2.5 2.6 -3.4 42.8 Facility Services Fin
Slide 5: Solid performance in Circular Economy businesses, performance in Facility Services improving
SOLID PERFORMANCE IN CIRCULAR ECONOMY BUSINESSES, PERFORMANCE IN FACILITY SERVICES IMPROVING Net sales 2020-25 (m€, LTM) Adj. EBITDA 2020-25 (m€, LTM) Adj. EBIT 2020-2025 (m€, LTM) Capital empl. 2020-25 (m€) 20,2 % 20,0 % 19,7 % 20,0 % 20,3 % 20,5 % 419 422 424 420 371 CIRCULAR 341 300 300 303 84 86
Slide 6: Circular Economy Business
-3.8% 93.0 89.5 14.1% 13.8% 13.5% CIRCULAR ECONOMY 2.8% 2.8% 13.1% 13.0% BUSINESS 1-3/24 1-3/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Net sales Return on capital employed (ROCE), % • Stable performance despite the challenging Adjusted operating margin, % business environment • Efficiency improvement measure
Slide 7: Facility Services Finland
-7.8% 63.3 58.3 67.8% 51.4% FACILITY SERVICES -0.2% 3.7% 18.6% 29.2% 33.8% FINLAND 1-3/24 1-3/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Net sales Return on capital employed (ROCE), % • Strong profitability improvement in a Adjusted operating margin, % seasonally slow first quarter • Revenue decreased due to
Slide 8: Facility Services Sweden
-3.9% 29.5 28.3 -8.2% -9.2% -11.7% FACILITY SERVICES -7.1% -5.1% -77.9% -78.1% SWEDEN 1-3/24 1-3/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Net sales Return on capital employed (ROCE), % • Turnaround progressed well in the first quarter Adjusted operating margin, % • Measures to simplify operating models and
Slide 9: Profitability Improvement Programme Progressing / Case Fixed Costs
PROFITABILITY IMPROVEMENT PROGRAMME PROGRESSING / CASE FIXED COSTS Comments Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2024 2024 2024 2025 Adjusted for externally reported IAC, L&T’s -40,0 0,0 % fixed cost base has been decreased by approximately EUR 5m between year-ends 2023 and 2024 -60,0 -4,0 % During Q1 20
Slide 10: Planned Demerger of Lassila & Tikanoja
PLANNED DEMERGER OF LASSILA & TIKANOJA L&T TODAY PLANNED STRUCTURE POST-2025 Existing Lassila & Tikanoja shareholders 100% 100% Facility Facility Circular Economy Facility Services Environmental Industrial Services Services Services Services Finland Sweden Facility Facility Environmental Industrial
Slide 11: Sustainability Score Card 2025
SUSTAINABILITY SCORE CARD 2025 • Occupational safety continued to develop well due to increased training and safety culture development. • The carbon footprint of own operations (Scope 1 and 2) decreased by 23% compared to Q1/2024. Target Target Target L&T 2020 2021 2022 2023 2024 Q1/2024 Q1/2025 20
Slide 12: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS Improvement in key Solid financial financial metrics Strong cash flow in position and clear due to seasonally slow Q1 decrease in net strengthened debt profitability and cash flow © Lassila & Tikanoja plc | Q1/2025 29 April 2025
Slide 13: Net Working Capital
NET WORKING CAPITAL Net working capital by quarter 2023-2025 (EUR million) Comments 0 NWC at the end of Q1 amounted to EUR -45.1m (-38.7m), clear -10 improvement of EUR -6.4m year- -28 -30 on-year -34 -20 -42 -39 NWC almost at the year-end 2024 -45 -49 -48 -47 level -30 Improvement attributabl
Slide 14: Capital Expenditure
CAPITAL EXPENDITURE Capital expenditure 2024-2025 (year-to-date, EUR million) Comments 50 Capital expenditure in January- 45 March 2025 was EUR 3.8m (11.1) showing a decrease of EUR 7.3 40 2 million or 65.5% 35 The decrease is predominantly 30 attributable to Circular Economy 2 25 business area
Slide 15: Cash Flow
CASH FLOW Cash flow from operations and investments 2023-2025 (LTM, EUR m) Comments 120 Free cash flow in January-March 100 2025 was EUR 6.6m (-9.4) Operating cash flow in Q1 80 68 was EUR 10.9m (1.9m) 66 65 60 51 57 Cash flow from investments 94 40 85 88 91 74 79 81 41 90 in Q1 was EUR -4.3m
Slide 16: Financial Position
FINANCIAL POSITION • Strong financial position at the end of Q1 2025. Equity ratio and Gearing affected by FY2024 dividends • Net interest-bearing debt at EUR 148.5m (180.3m), decrease of EUR 31.8m year-on-year Equity ratio and Gearing by quarter 2023-2025 Net debt specification by quarter 2023-2025
Slide 17: Maturity Structure of Long-Term Loans
MATURITY STRUCTURE OF LONG-TERM LOANS Loans, MEUR Weighted average of effective interest rate 3.4% (4.0%) 80 70 60 50 35 % 40 75 30 20 40 10 65 % 0 2025 2026 2027 2028 Bond Bank loan Fixed Variable © Lassila & Tikanoja plc | Q1/2025 29 April 2025
Slide 18: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED ROCE-% development by quarter 2023-2025 (LTM) Comments 20% 2,2x Return on capital employed in 18% 2,1x Q1/2025 was 4.7% (9.7%) 16% 1,98x 2,0x burdened by one-off items 1,92x 1,91x 1,88x 1,86x 1,89x 1,88x recognised in Q4 2025 14% 1,85x 1,9x 1,80x Adjusted ROCE excludin
Slide 19: Earnings per Share and Cash Flow per Share
EARNINGS PER SHARE AND CASH FLOW PER SHARE EPS and cash flow per share 2023-2024 (YTD, EUR) Comments 1,2 1,07 Earnings per share in January- 1,0 March 2025 was EUR 0.09 (-0.02) supported by improved 0,78 0,8 profitability year-on-year 0,6 0,51 Net operating cash flow after investments per share
Slide 20: Outlook for 2025
OUTLOOK FOR 2025 Net sales in 2025 are estimated to be at the same level as in the previous year, and adjusted operating profit is estimated to be at the same level or better compared to the previous year. Q4/2020 & FY 2020 29 April 2025
Slide 21: Contacts
CONTACTS Eero Hautaniemi, CEO +358 10 636 2810 eero.hautaniemi@lassila-tikanoja.fi Joni Sorsanen, CFO +358 50 443 3045 joni.sorsanen@lassila-tikanoja.fi © Lassila & Tikanoja plc | Q1/2025 29 April 2025
Slide 22: Shareholders
SHAREHOLDERS
Slide 23: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 24 557 24 959 24 522 24 317 23 088 Others 34% 20 732 Households 43% 15 524 13 207 12 208 10 812 Foreign and nominee registered Financial and 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1/25 14% insurance corp. 9% © Lassila & Tikano
Slide 24: Major Shareholders on 31 March 2025
MAJOR SHAREHOLDERS ON 31 MARCH 2025 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Nordic Small Cap Fund 1,834,300 4.73 Maijala Juhani 1,529,994 3.94 Bergholm Heikki 895,057 2.31 Åbo Akademi University Foundation 816,282 2.10 Ilmarinen Mutual Pension Insurance Company
Slide 25: Appendix
APPENDIX
Slide 26: Key Figures
KEY FIGURES NET SALES Q1/2025 Q1/25 Q1/24 Change% 2024 Net sales, MEUR 175.5 185.0 -5.1 770.7 16 % EBITDA, 17.2 12.1 42.4 89.0 MEUR 51 % Operating 3.7 -1.7 9.8 175.5 profit, MEUR MEUR Operating 2.1 -0.9 1.3 margin, % 33 % Earnings per share, 0.09 -0.02 -0.05 EUR 51% Circular Economy Business 33%
Slide 27: © Lassila & Tikanoja plc | Q1/2025 29 April 2025
© Lassila & Tikanoja plc | Q1/2025 29 April 2025
Slide 28: © Lassila & Tikanoja plc | Q1/2025 29 April 2025
© Lassila & Tikanoja plc | Q1/2025 29 April 2025
Slide 29: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _