Slide 1: Lassila & Tikanoja Half-Year Financial Report 2024
LASSILA & TIKANOJA HALF-YEAR FINANCIAL REPORT 2024 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 7 August 2024
Slide 2: In Focus in H1/2024
IN FOCUS IN H1/2024 • Environmental Services strengthened its position amongst the producer responsibility organisations and municipal contracts • Net sales increased in Industrial Services. Resourcing of annual maintenance breaks was successful • In Facility Services Finland the turnaround programm
Slide 3: Net Sales
NET SALES -4.0% (Organic growth -4.3%) 400.2 -1.4 6.0 -8.0 -12.6 384.2 0.1 Group Environmental Industrial Facility Services Facility Services Other Group 1-6/2023 Services Services Finland Sweden 1-6/2024 MEUR Q2/24 Q2/23 Change% 1-6/24 1-6/23 Change% 2023 Environmental Services 73.9 74.4 -0.6 139.3
Slide 4: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 19.6% -1.0 1.8 1.7 -1,6 1,2 10.6 12.7 Adjusted operating Environmental Industrial Facility Services Facility Services Other Adjusted operating profit 1-6/2023 Services Services Finland Sweden profit 1-6/2024 MEUR Q2/24 Q2/23 Change% 1-6/24 1-6/23 Change% 2023 Environmental
Slide 5: Operating Profit by Division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES INDUSTRIAL SERVICES MEUR MEUR 6.1 6.1 11,7 3.9 8,5 7,8 3.6 3,6 2,7 3,2 0.1 -0.4 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 FACILITY SERVICES FINLAND FACILITY SERVICES SWEDEN MEUR MEUR -1.0 -2.0 -0.9 -2.1 3.2 0.2 -2.5 2.
Slide 6: Environmental Services
ENVIRONMENTAL SERVICES • The challenging economic environment and the political strikes reduced demand of recycling and waste management services. • Demand and price level of recycled raw materials stabilised in the second quarter • The division strengthened its position amongst the producer respons
Slide 7: Industrial Services
INDUSTRIAL SERVICES • Political strikes in Finland postponed some process cleaning activities from the first quarter to the second quarter • Annual maintenance breaks were carried out as planned and resourcing was successful • The process cleaning business expanded in Sweden to the Gävleborg region
Slide 8: Facility Services Finland
FACILITY SERVICES FINLAND • Measures to streamline the cost structure and improve operational efficiency continued successfully • All business lines achieved a stronger result than in the comparison period -6.2% MEUR Q2/24 Q2/23 Change% 1-6/24 1-6/23 Change% 2023 129,8 Net sales 58.5 62.7 -6.7 121.8
Slide 9: Facility Services Sweden
FACILITY SERVICES SWEDEN • A large customer contract ended in the end of 2023, and the loss of the contract was not sufficiently compensated by new customer accounts during the review period • The division has a programme ongoing to simplify operating models and adapt them to the changed business en
Slide 10: Sustainability Score Card 1-6/2024
SUSTAINABILITY SCORE CARD 1-6/2024 • L&T’s customer satisfaction score (NPS) grew by 7 points with all divisions and business lines improving their score. Both circular economy divisions had a high score, above 40 • Occupational safety improved due to increased training and safety culture developmen
Slide 11: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 21,2 20,3 20 15 12,7 11,0 10.6 9.9 9,6 9,2 10 7,2 5.0 6.4 4.6 4.4 5 3.6 1,4 0 0.7 0,0 0 0 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Adjusted operating profit, MEUR Adjusted operating profit % © Lassila & Tikanoja plc | Q2/2024 7 August 2024
Slide 12: Net Working Capital
NET WORKING CAPITAL • Trade payables decreased mainly due to lower level of investments • Personnel related liabilities decreased due to reduction in the number of employees 0 -10 -23 -28 -35 -34 -20 -37 -39 -42 -47 -48 -49 -30 -40 -50 -60 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24
Slide 13: Capital Expenditure
CAPITAL EXPENDITURE 70 60 50 40 30 60 46 20 2 32 10 2 20 14 9 0 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 CapEx excl. business acquisitions (YTD, MEUR) Share of business acquisitions in CapEx (YTD, MEUR) © Lassila & Tikanoja plc | Q2/2024 7 August 2024
Slide 14: Net Cash Flow and Net Investments
NET CASH FLOW AND NET INVESTMENTS 120 100 93.6 80 60 58.5 50,9 40 38.5 28,1 20 19,2 19,3 26.8 1.9 19.3 0 -7.7 -11.3 -3,7 -19.2 -9,4 -23.1 -30.4 -20 -42.7 -40 -60 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Net cash from operating activities YTD, MEUR Net cash used in investment activities YTD, MEUR Net cash
Slide 15: Financial Position
FINANCIAL POSITION 140% 275 MEUR 250 120% 225 103,3 % 102,4 % 34 30 22 95,0 % 200 20 100% 48 30 28 89,3 % 49 26 86,7 % 85,8 % 84,5 % 33 175 75,9 % 77,9 % 73 70 70 80% 79 69,3 % 150 76 74 82 72 75 125 78 60% 100 35,8 % 36,8 % 40% 33,2 % 34,3 % 32,7 % 33,4 % 33,4 % 34,6 % 30,9 % 30,6 % 75 126 131 130
Slide 16: Maturity Structure of Long-Term Loans
MATURITY STRUCTURE OF LONG-TERM LOANS Loans, MEUR Weighted average of effective interest rate 4.0% (3.4%) 80 70 60 50 35 % 40 75 30 20 40 10 65 % 0 2024 2025 2026 2027 2028 Bond Bank loan Fixed Variable © Lassila & Tikanoja plc | Q2/2024 7 August 2024
Slide 17: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED 20% 2,2x 18% 2,1x 2,00x 1,98x 16% 2,0x 1,92x 1,88x 1,89x 14% 1,86x 1,85x 1,9x 12% 1,8x 11,4 % 11,5 % 11,7 % 10% 10,4 % 1,7x 10,3 % 9,9 % 9,8 % 8% 1,6x 6% 1,5x 6,0 % 6,2 % 5,8 % 5,5 % 4% 5,2 % 5,2 % 5,3 % 1,4x 2% 1,3x 0% 1,2x Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 ROCE (
Slide 18: EPS and Cash Flow per Share
EPS AND CASH FLOW PER SHARE 1,6 1,4 1,33 1,2 1,0 0,79 0,8 0,74 0,65 0,6 0,50 0,51 0,4 0,24 0,16 0,2 0,03 0,0 -0,02 -0,2 -0,10 -0,25 -0,4 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Earnings per share (YTD, EUR) Net cash flow from operating activities after investments per share (YTD, EUR) © Lassila & Tikano
Slide 19: Outlook for 2024
OUTLOOK FOR 2024 Updated 1 August, 2024 Net sales in 2024 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. Previous outlook Net sales in 2024 are estimated to be at the same leve
Slide 20: 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 | Q2/2024 7 August 2024
Slide 21: Shareholders
SHAREHOLDERS
Slide 22: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 25 255 25 030 24 557 24 959 23 088 Others 35% 20 732 Households 44% 15 524 13 207 12 208 10 812 Foreign and nominee registered 9% Financial and 2016 2017 2018 2019 2020 2021 2022 2023 Q1/24 Q2/24 insurance corp. 12% © Lassila & Tikan
Slide 23: Major Shareholders on 30 June 2024
MAJOR SHAREHOLDERS ON 30 JUNE 2024 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Funds Ltd 1,708,086 4.40 Maijala Juhani 1,529,994 3.94 Mandatum Life Insurance Company Limited 1,296,082 3.34 Åbo Akademi University Foundation 1,066,282 2.75 Bergholm Heikki 875,000 2.26
Slide 24: Appendix
APPENDIX
Slide 25: Key Figures
KEY FIGURES NET SALES Q2/2024 Q2/24 Q2/23 Change% 1-6/24 1-6/23 Change% 2023 Net sales, 199.2 207.5 -4.0 384.2 400.2 -4.0 802.1 21 % MEUR EBITDA, 25.1 23.2 8.1 37.2 38.6 -3.8 95.8 37 % MEUR Operating 11.0 9.2 19.6 9.3 10.6 -12.5 38.4 13 % 199.2 profit, MEUR MEUR Operating 5.5 4.4 2.4 2.7 4.8 margin,
Slide 26: © Lassila & Tikanoja plc | Q2/2024 7 August 2024
© Lassila & Tikanoja plc | Q2/2024 7 August 2024
Slide 27: © Lassila & Tikanoja plc | Q2/2024 7 August 2024
© Lassila & Tikanoja plc | Q2/2024 7 August 2024
Slide 28: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _