Slide 1: Lassila & Tikanoja Interim Report Q3 2023
Join L&T’s Capital Markets Day on November 23rd! LASSILA & TIKANOJA INTERIM REPORT Q3 2023 Eero Hautaniemi, President & CEO Valtteri Palin, CFO 26 October 2023
Slide 2: In Focus in Q3
IN FOCUS IN Q3 • Solid performance in all divisions despite challenging business cycle • Adjusted operating profit was EUR 31.8 million (31.3) January-September • Net cash flow from operating activities after investments per share in January-September was strong at EUR 0.74 (0.03) as was L&T’s finan
Slide 3: Net Sales
NET SALES -5.2% (Organic growth 0.3%) -1.2 7.4 634.0 -3.1 -2.0 0.2 601.2 -34.1 Group Environmental Industrial Facility Services Facility Services Other Renewable Group 1-9/2022 Services* Services Finland Sweden energy 1-9/2023 sources** MEUR Q3/23 Q3/22 Change% 1-9/23 1-9/22 Change% 2022 Environment
Slide 4: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 1.7% -0.3 -0.3 4.7 -2,6 -0,9 31.3 31.8 Adjusted operating Environmental Industrial Facility Services Facility Services Other Adjusted operating profit 1-9/2022 Services Services Finland Sweden profit 1-9/2023 MEUR Q3/23 Q3/22 Change% 1-9/23 1-9/22 Change% 2022 Environmental
Slide 5: Operating Profit by Division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES excl. renewable energy sources INDUSTRIAL SERVICES MEUR MEUR 7.0 11,1 11,7 6.1 9,9 6,2 8,5 3.3 2.3 3.9 3,2 2.8 0.2 0.1 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 FACILITY SERVICES FINLAND FACILITY SERVICES S
Slide 6: Operating Profit by Division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES INDUSTRIAL SERVICES MEUR MEUR 7.0 10,0 11,1 11,7 6.1 8,5 3.3 6,2 3.9 3,2 2.3 2,9 0.2 0.1 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 FACILITY SERVICES FINLAND FACILITY SERVICES SWEDEN MEUR MEUR 3.2 2.0 0.5 -1
Slide 7: Environmental Services
ENVIRONMENTAL SERVICES EXCL. RENEWABLE ENERGY SOURCES • The number of B2B and producer responsibility organization customers increased thanks to active sales efforts • Market share in municipal contracts for waste management strengthened • The division improved the efficiency of its operations in re
Slide 8: Industrial Services
INDUSTRIAL SERVICES • The hazardous waste and environmental construction businesses saw strong demand despite slight decline from the high comparison period • Resourcing of annual maintenance breaks succeeded well 7.7% MEUR Q3/23 Q3/22 Change% 1-9/23 1-9/22 Change% 2022 Net sales 39.0 38.9 0.3 103.1
Slide 9: 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 -1.6% MEUR Q3/23 Q3/22 Change% 1-9/23 1-9/22 Change% 2022 191,7 188,6 Net sales 58.8 60.2 -2.4 188.6 191.7 -1.6 256.3 EBITDA 5.1 4.3
Slide 10: 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 results of the programme started to realise in the third quarter -2.0% MEUR Q3/23 Q3/22 Change% 1-9/23 1-9/22 Change% 2022 100.7 98.7 Net sales 30.3 31
Slide 11: Evaluation of Strategic Alternatives for Facility Services Finland and Sweden Starts
EVALUATION OF STRATEGIC ALTERNATIVES FOR FACILITY SERVICES FINLAND AND SWEDEN STARTS • Lassila & Tikanoja announced October 25 that the Group has completed a strategy review and decided to focus on its circular economy businesses • Environmental services and Industrial services divisions will seek g
Slide 12: Sustainability Highlights Q1-Q3/2023
SUSTAINABILITY HIGHLIGHTS Q1-Q3/2023 Large industrial soil Employee sickness rate L&T’s CO2 emissions from remedition project 4.9, is on the same level as own operations continued completed in Pirkanmaa during the years before the to decrease due to • The area can now be COVID-19 increased use of bi
Slide 13: Sustainability Score Card Q1-Q3/2023
SUSTAINABILITY SCORE CARD Q1-Q3/2023 Target Target Target L&T 2018 2019 2020 2021 2022 Q1-Q3/2023 Q1-Q3/2022 2023 2026 2030 CARBON FOOTPRINT (tCO2-ekv) 47,400 43,100 36,700 37,800 34,200 23,400 26,000 32,900 24,400 EMISSION INTENSITY (gCO2-ekv/km) 952 867 818 771 677 608 710 723 712 476 CARBON HANDP
Slide 14: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 21,2 20,3 20 18,5 15 11,0 10.6 10,2 10,1 9.9 9,6 10 9.3 9,2 5.1 4.5 5.0 4.6 5 3,6 4.4 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 Q2/23 Q3/23 Adjusted operating profit, MEUR Adjusted operating profit % © Lassila & Tikanoja plc | Q3/2023 26 Octo
Slide 15: Key Figures
KEY FIGURES Q3/23 Q3/22 Change % 1-9/23 1-9/22 Change % 2022 Capital expenditure, MEUR 14.2 10.1 41.0 46.0 45.8 0.4 58.2 Share of business acquisitions in capital expenditure, - 21.8 21.5 MEUR Depreciation, amortisation and impairment, MEUR 15.6 13.9 12.0 43.6 41.8 4.3 55.4 Return on equity (ROE), %
Slide 16: Net Working Capital
NET WORKING CAPITAL Q1/22* Q2/22* Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 0,0 -5,0 -4.1 -2.8 -3.5 -5.6 -4.6 -6.1 -5.1 -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 -49.5 -55,0 -60,0 Net working capital, MEUR Net working capital, % of net sales Net working capital =
Slide 17: Net Cash Flow and Net Investments
NET CASH FLOW AND NET INVESTMENTS 50,0 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 Net cash from operating activities after investments YTD, MEUR Net cash used in investment activities YTD, MEUR ©
Slide 18: Interest Bearing Debt and Liquidity
INTEREST BEARING DEBT AND LIQUIDITY 250 200 70 70 73 72 75 76 74 150 100 165 160 144 148 144 134 126 50 50 48 22 34 30 30 26 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Interest bearing debt, MEUR IFRS 16, MEUR Liquid assets, MEUR © Lassila & Tikanoja plc | Q3/2023 26 October 2023 18
Slide 19: 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 20: 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. L&T will organise a Capital Markets Day ev
Slide 21: 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 | Q3/2023 26 October 2023 21
Slide 22: Shareholders
SHAREHOLDERS
Slide 23: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 25 228 25 121 25 218 24 557 23 088 Others 34% 20 732 Households 43% 15 524 13 207 12 208 10 812 Foreign and nominee registered 10% Financial and 2016 2017 2018 2019 2020 2021 2022 Q1/23 Q2/23 Q3/23 insurance corp. 13% © Lassila & Tik
Slide 24: Major Shareholders on 30 September 2023
MAJOR SHAREHOLDERS ON 30 SEPTEMBER 2023 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Funds Ltd 1,683,941 4.34 Mandatum Life Insurance Company Limited 1,634,918 4.21 Maijala Juhani 1,529,994 3.94 Åbo Akademi University Foundation 1,066,282 2.75 Bergholm Heikki 875,000
Slide 25: Appendix
APPENDIX
Slide 26: Key Figures
KEY FIGURES NET SALES Q3/2023 Q3/23 Q3/22 Change% 1-9/23 1-9/22 Change% 2022 Net sales, 200.9 204.4 -1.7 601.2 634.0 -5.2 844.1 19 % MEUR EBITDA, 36.7 34.1 7.6 75.3 71.8 4.9 98.3 36 % MEUR Operating 21.1 20.2 4.6 31.7 30.0 5.7 42.9 15 % 200.9 profit, MEUR MEUR Operating 10.5 9.9 5.3 4.7 5.1 margin,
Slide 27: © Lassila & Tikanoja plc | Q3/2023 26 October 2023
© Lassila & Tikanoja plc | Q3/2023 26 October 2023 27
Slide 28: © Lassila & Tikanoja plc | Q3/2023 26 October 2023
© Lassila & Tikanoja plc | Q3/2023 26 October 2023 28
Slide 29: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _