Slide 1: Result Presentation 2022
LASSILA & TIKANOJA RESULT PRESENTATION 2022 Eero Hautaniemi, President & CEO Valtteri Palin, CFO 9 February 2023
Slide 2: In Focus 2022
IN FOCUS 2022 • Net sales were EUR 844.1 million (812.5) • Adjusted operating profit was EUR 40.9 million (42.4) • Net cash flow from operating activities after investments per share was EUR 1.08 (0.05) • Strong year in circular economy businesses Environmental Services and Industrial Services • In
Slide 3: Net Sales
NET SALES 3.9% (Organic growth 3.7%) 13.2 -9.3 0.1 -20,9 26.9 844.1 21.6 812.5 40,0 Group 2021 Environmental Industrial Services Facility Services Facility Services Other Renewable energy Group 2022 Services* Finland Sweden sources** MEUR Q4/22 Q4/21 Change% 2022 2021 Change% Environmental Services*
Slide 4: Net Sales
NET SALES 3.9% (Organic growth 3.7%) 13.2 -9.3 0.1 0.7 26.9 844.1 812.5 40,0 Group 2021 Environmental Services Industrial Services Facility Services Finland Facility Services Sweden Other Group 2022 MEUR Q4/22 Q4/21 Change% 2022 2021 Change% Environmental Services 71.1 89.9* -20.9 321.2 320.5* 0.2 I
Slide 5: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT -3.5% 4.4 -2.3 -3.5 -0.6 40.9 0.5 42.4 Adjusted Environmental Industrial Facility Facility Other Adjusted operating profit Services Services Services Services operating 2021 Finland Sweden profit 2022 MEUR Q4/22 Q4/21 Change% 2022 2021 Change% Environmental Services* 6.2 6.
Slide 6: Operating Profit by Division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES excl. renewable energy sources INDUSTRIAL SERVICES MEUR MEUR 11,1 7.0 10.2 9,9 7.9 6,2 4.1 6.6 3.2 3.3 2.3 4.1 1.7 2.8 0.2 0.2 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 FACILITY SERVICES FINLAND
Slide 7: Operating Profit by Division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES INDUSTRIAL SERVICES MEUR MEUR 11,1 7.0 10.3 10,0 6,2 4.1 7.8 7.1 3.2 3.3 2.3 4.5 1.7 2.9 0.2 0.2 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 FACILITY SERVICES FINLAND FACILITY SERVICES SWEDEN MEUR
Slide 8: Environmental Services excl. renewable energy sources
ENVIRONMENTAL SERVICES EXCL. RENEWABLE ENERGY SOURCES • Growth in 2022 derived from B2B customers and producer responsibility 8.1% organisations. For example, Suomen Pakkaustuottajat Oy chose L&T as its recycling partner for consumer plastic packaging waste • The prices of recycled raw materials sta
Slide 9: Environmental Services
ENVIRONMENTAL SERVICES 0.2% 320.5 321.2 MEUR Q4/22 Q4/21 Change% 2022 2021 Change% 9.4 Net sales 71.1 89.9 -20.9 321.2 320.5 0.2 9.3 EBITDA 12.7 13.6 -6.9 57.1 56.5 1.1 Operating profit 6.2 7.1 -13.0 30.3 29.8 1.6 Operating margin, 8.7 7.9 9.4 9.3 % 1-12/21 1-12/22 Net sales Operating margin, % © La
Slide 10: Industrial Services
INDUSTRIAL SERVICES • The demand for hazardous waste services was strong 25.6% • Several demanding soil decontamination projects ongoing, new material treatment center opened in Pori specialising in industrial side streams 132.0 • Integration of the Swedish process cleaning business continued, sever
Slide 11: Facility Services Finland
FACILITY SERVICES FINLAND • The labour market remained challenging and employee turnover was at a high level. 5.4% High level of sickness-related absences in Q1 and Q4 • The general cost inflation increased the production costs, and they could not be fully 256.3 243.1 passed on to customer prices, e
Slide 12: Facility Services Sweden
FACILITY SERVICES SWEDEN • The general cost inflation increased production costs and they could not be fully passed on to customer prices -6.2% • High level of sickness-related absences, especially in Q1 • Measures to reduce costs and simplify the way of working continued 149.8 140.4 MEUR Q4/22 Q4/2
Slide 13: Solid roadmap for ICT solution renewal to modernise end-of-life systems
SOLID ROADMAP FOR ICT SOLUTION RENEWAL TO MODERNISE END-OF-LIFE SYSTEMS Environmental Services ERP renewal Facility Services Sweden ERP upgrade HR & Finance system renewals Facility Services Industrial Services ERP renewal in phases Finland ERP 2015-2019 2020 2021 2022 2023 2024 4.0 MEUR* 4.0 MEUR*
Slide 14: Sustainability Highlights 2022
SUSTAINABILITY HIGHLIGHTS 2022 The producer responsibility Safety culture trainings for Recycling rate improved to organization, Suomen all employees started 59.4 % (58.4) Pakkaustuottajat, chose • The trainings focus on • Pilot project with SRV and L&T as its recycling partner attitudes and behavio
Slide 15: Sustainability Score Card 2022
SUSTAINABILITY SCORE CARD 2022 • The renewable fuel distribution obligation in Finland was reduced by 7.5 percentage points in July. The change significantly increases transport emissions in Finland and will also have a negative impact on L&T’s transport emissions in 2022 • The carbon handprint of t
Slide 16: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 25 20,3 20 18,5 17,5 15 11,0 9,9 10,2 10,1 9,6 10 8,7 9.5 9.3 9.9 4.7 5.0 5.1 4.5 5.0 5 3,6 3,6 4.6 0.0 0 1.9 1.9 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 0 Q1/22 Q2/22 Q3/22 Q4/22 Adjusted operating profit, MEUR Adjusted operating profit % The cost impact of COVID-1
Slide 17: Key Figures
KEY FIGURES Q4/22 Q4/21 Change % 2022 2021 Change % Capital expenditure, MEUR 12.4 18.3 -32.2 58.2 72.3 -19.5 Share of business acquisitions in capital expenditure, MEUR 21.5 31.0 -30.8 Depreciation, amortisation and impairment, MEUR 13.6 13.3 2.2 55.4 52.9 4.6 Return on equity (ROE), % 14.6 17.1 Ca
Slide 18: Net Working Capital
NET WORKING CAPITAL • Renewable energy sources business was re-classified as an assets held for sale and that improved the net working capital by EUR 21 million in Q4/2021 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 0,0 -5,0 -1.2 -3.1 -4.1 -2.8 -4.9 -5.7 -5.6 -4.6 -10,0 -9.4 -15,0 -20,0 -25,0 -2
Slide 19: Net Cash Flow and Net Investments
NET CASH FLOW AND NET INVESTMENTS • Acquisitions were EUR 13.0 million (EUR 23.0 million) in YTD cash flow • In Q4, EUR 16.4 million capital was released related to forming Laania Oy joint venture with Neova 70,0 -63.9 60,0 -50.4 50,0 -41.4 41.1 40,0 -37.8 -30.6 30,0 -27.4 -19.8 20,0 -9.2 10,0 4.3 1
Slide 20: Interest Bearing Debt and Liquidity
INTEREST BEARING DEBT AND LIQUIDITY 250 200 70 70 73 72 74 74 71 150 74 100 165 160 135 125 148 144 125 50 111 50 33 15 22 29 22 34 30 0 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Interest bearing debt, MEUR IFRS 16, MEUR Liquid assets, MEUR © Lassila & Tikanoja plc | Q4/2022 9 February 2023 20
Slide 21: Maturity Structure of Loans
MATURITY STRUCTURE OF LOANS Loans, MEUR Weighted average of effective interest rate 2.5% (1.1%) 80 70 60 14 % 50 40 75 30 50 20 10 18 0 2022 2023 2024 2025 2026 2027 2028 86 % Bond Bank loan Fixed Variable Loans do not include commercial papers © Lassila & Tikanoja plc | Q4/2022 9 February 2023 21
Slide 22: 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 9 February 2023 22
Slide 23: 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 | Q4/2022 9 February 2023 23
Slide 24: Shareholders
SHAREHOLDERS
Slide 25: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 24 318 24 557 23 894 23 944 23 088 Others 20 732 35% Households 42% 15 524 13 207 12 208 10 812 Foreign and nominee registered 7% Financial and 2016 2017 2018 2019 2020 2021 Q1/22 Q2/22 Q3/22 Q4/22 insurance corp. 16% © Lassila & Tik
Slide 26: Major Shareholders on 31 December 2022
MAJOR SHAREHOLDERS ON 31 DECEMBER 2022 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,346,487 8.63 Mandatum Life Insurance Company Limited 3,028,547 7.81 Nordea Funds Ltd 1,706,466 4.40 Maijala Juhani 1,529,994 3.94 Åbo Akademi University Foundation 1,066,282 2.75 Bergholm Heikki 875,000
Slide 27: Appendix
APPENDIX
Slide 28: Key Figures
KEY FIGURES NET SALES Q4/2022 Q4/22 Q4/21 Change% 2022 2021 Change% Net sales, 210.1 223.5 -6.0 844.1 812.5 3.9 17 % MEUR 33 % EBITDA, 26.5 23.2 14.2 98.3 95.1 3.3 MEUR Operating 12.9 9.9 30.2 42.9 42.2 1.7 profit, 19 % 210.1 MEUR MEUR Operating 6.2 4.4 5.1 5.2 margin, % EVA, 5.4 3.0 79.4 14.5 15.9
Slide 29: © Lassila & Tikanoja plc | Q4/2022 9 February 2023
© Lassila & Tikanoja plc | Q4/2022 9 February 2023 29
Slide 30: © Lassila & Tikanoja plc | Q4/2022 9 February 2023
© Lassila & Tikanoja plc | Q4/2022 9 February 2023 30
Slide 31: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _