Slide 1: Lassila & Tikanoja Interim Report Q1/2023
LASSILA & TIKANOJA INTERIM REPORT Q1/2023 Eero Hautaniemi, President & CEO Valtteri Palin, CFO 3 May 2023
Slide 2: In Focus in Q1
IN FOCUS IN Q1 • Net sales were EUR 192.7 million (210.4) • Adjusted operating profit was EUR 1.4 million (0.0) • Net cash flow from operating activities after investments per share was EUR 0.50 (-0.16) • The result of Facility Services Finland improved substantially © Lassila & Tikanoja plc | Q1/20
Slide 3: Net Sales
NET SALES -8.4% (Organic growth 2.3%) 3.0 -1.2 1.6 1.3 210.4 192.7 -0.1 -22.3 Group Environmental Industrial Facility Services Facility Services Other Renewable Group 1-3/2022 Services* Services Finland Sweden energy 1-3/2023 sources** MEUR Q1/23 Q1/22 Change% 2022 Environmental Services* 66.3 65.0
Slide 4: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT -0,8 2,5 -0,6 0,4 -0,1 1,4 0.0 Adjusted operating Environmental Industrial Facility Services Facility Services Other Adjusted operating profit 1-3/2022 Services Services Finland Sweden profit 1-3/2023 MEUR Q1/23 Q1/22 Change% 2022 Environmental Services* 3.2 2.8 15.6 30.0 I
Slide 5: Operating Profit by Division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES excl. renewable energy sources INDUSTRIAL SERVICES MEUR MEUR 11,1 7.0 9,9 6,2 3.3 2.3 2.8 3,2 0.2 0.1 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 FACILITY SERVICES FINLAND FACILITY SERVICES SWEDEN MEUR MEUR 0.5 2.0 0.2 -1.0 0.8 0.2
Slide 6: Environmental Services
ENVIRONMENTAL SERVICES EXCL. RENEWABLE ENERGY SOURCES • The number of B2B customers increased thanks to active sales efforts • The prices of recycled raw materials remained at the low level seen in late 2022 • Industrial action in the transport sector made resource allocation more difficult, and inc
Slide 7: Industrial Services
INDUSTRIAL SERVICES • The hazardous waste business saw strong demand, and the prices of recycled raw materials were at a good level • In the environmental construction business demand remained high and new customer projects started • In the process cleaning business in Sweden demand was lower compar
Slide 8: Facility Services Finland
FACILITY SERVICES FINLAND • The measures taken in the latter half of 2022 to streamline the cost structure improved the profit performance • In the cleaning business, the efficiency of production improved, and personnel turnover decreased from the high level seen in late 2022 • The rising costs caus
Slide 9: Facility Services Sweden
FACILITY SERVICES SWEDEN • Customer agreements in the Swedish business are mostly fixed-price contracts, and the increased production costs could not be passed on to customers • The division has a programme ongoing to simplify operating models and adapt them to the changed business environment. The
Slide 10: Sustainability Highlights Q1/2023
SUSTAINABILITY HIGHLIGHTS Q1/2023 L&T’s Net Promoter Score Code of Conduct refresher L&T’s CO2 emissions from NPS improved by 5 points training for all white-collar own operations decreased and was 31 employees started in Q1 due to increased use of • L&T received positive • Renewed Whistle biofuels
Slide 11: Sustainability Score Card Q1/2023
SUSTAINABILITY SCORE CARD Q1/2023 • The renewable fuel distribution obligation in Finland was reduced by 7.5 percentage points in July. The change significantly increases transport emissions in Finland in will also impact L&T’s CO2 emissions in Q1 Target Target Target L&T 2019 2020 2021 2022 Q1/2022
Slide 12: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 20,3 20 18,5 15 11,0 10,2 10,1 9.9 9,6 10 9.3 5.1 4.5 5.0 4.6 5 3,6 1,4 1.9 0.0 0.7 0 Q1/21 Q2/21 Q3/21 Q4/21 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Adjusted operating profit, MEUR Adjusted operating profit % © Lassila & Tikanoja plc | Q1/2023 3 May 2023 13
Slide 13: Key Figures
KEY FIGURES Q1/23 Q1/22 Change % 2022 Capital expenditure, MEUR 13.8 28.5 -51.5 58.2 Share of business acquisitions in capital expenditure, MEUR - 21.0 -100.0 21.5 Depreciation, amortisation and impairment, MEUR 14.0 13.8 1.5 55.4 Return on equity (ROE), % 2.2 -1.5 14.6 Capital employed, EUR million
Slide 14: Net Working Capital
NET WORKING CAPITAL Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 0,0 -5,0 -4.1 -2.8 -5.6 -4.6 -6.1 -10,0 -15,0 -20,0 -25,0 -22.5 -30,0 -35,0 -35.3 -40,0 -37.5 -45,0 -50,0 -46.8 -49.5 -55,0 -60,0 Net working capital, MEUR Net working capital, % of net sales Net working capital = Current assets - income tax receivab
Slide 15: Net Cash Flow and Net Investments
NET CASH FLOW AND NET INVESTMENTS 50,0 41.1 40,0 -37.8 -30.6 30,0 -27.4 -19.8 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 Net cash from operating activities after investments YTD, MEUR Net cash used in investment activities YTD, MEUR © Lassila & Tikanoja plc | Q1/2023 3
Slide 16: Interest Bearing Debt and Liquidity
INTEREST BEARING DEBT AND LIQUIDITY 250 200 70 70 73 72 75 150 100 165 160 144 148 144 50 50 48 22 34 30 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Interest bearing debt, MEUR IFRS 16, MEUR Liquid assets, MEUR © Lassila & Tikanoja plc | Q1/2023 3 May 2023 17
Slide 17: Maturity Structure of Loans
MATURITY STRUCTURE OF LOANS Loans, MEUR Weighted average of effective interest rate 2.8% (1.1%) 80 70 60 14 % 50 40 75 30 50 20 10 18 0 2023 2024 2025 2026 2027 2028 86 % Bond Bank loan Fixed Variable Loans do not include commercial papers © Lassila & Tikanoja plc | Q1/2023 3 May 2023 18
Slide 18: Outlook for 2023
OUTLOOK FOR 2023 Net sales and adjusted operating profit in 2023 are estimated to be at the same level as in the previous year even though the comparison period includes net sales from the Renewable energy sources business in the amount of EUR 35.4 million. Q4/2020 & FY 2020 3 May 2023 19
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 | Q1/2023 3 May 2023 20
Slide 20: Shareholders
SHAREHOLDERS
Slide 21: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 25 228 24 557 23 088 Others 35% 20 732 Households 43% 15 524 13 207 12 208 10 812 Foreign and nominee registered 9% Financial and 2016 2017 2018 2019 2020 2021 2022 Q1/23 insurance corp. 13% © Lassila & Tikanoja plc | Q1/2023 3 May 2
Slide 22: Major Shareholders on 31 March 2023
MAJOR SHAREHOLDERS ON 31 MARCH 2023 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Mandatum Life Insurance Company Limited 2,155,047 5.55 Nordea Funds Ltd 1,673,551 4.31 Maijala Juhani 1,529,994 3.94 Åbo Akademi University Foundation 1,066,282 2.75 Bergholm Heikki 875,000 2.2
Slide 23: Appendix
APPENDIX
Slide 24: Key Figures
KEY FIGURES NET SALES Q1/2023 Q1/23 Q1/22 Change% 2022 14 % Net sales, MEUR 192.7 210.4 -8.4 844.1 33 % EBITDA, 15.4 13.5 14.3 98.3 MEUR 18 % Operating 1.4 -0.3 42.9 192.7 profit, MEUR MEUR Operating 0.7 -0.1 5.1 margin, % Earnings per share, 0.03 -0.02 0.83 EUR 35 % 33% Environmental Services 3
Slide 25: © Lassila & Tikanoja plc | Q1/2023 3 May 2023
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Slide 26: © Lassila & Tikanoja plc | Q1/2023 3 May 2023
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Slide 27: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _