Slide 1: Financial Statements Release 2025
Lassila & Tikanoja Financial Statements Release 2025 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 27 February 2026
Slide 2: Today’s presenters
Today’s presenters Hautaniemi Sorsanen Eero Joni CEO CFO © Lassila & Tikanoja 27.2.2026 2
Slide 3: Contents
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 3
Slide 4: Contents: Highlights
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 4
Slide 5: Key financial highlights of 2025
Key financial highlights of 2025 Solid financial performance continued in a challenging market environment 1 2 3 4 Adjusted EBITDA Operating EUR 84.3m cash flow after Board Net sales grew by proposes a (86.0m) investments 0.7% to EUR 426.6 dividend of Adjusted per share million EUR 0.42 per EBITA EU
Slide 6: Key operational highlights of 2025
Key operational highlights of 2025 New L&T, a pure-play circular economy player, was created through demerger on 31 Dec 2025 1 2 3 4 Three Carbon New cloud-based Successful acquisitions footprint ERP was completion completed, continued to implemented of the partial and investments decrease, and thro
Slide 7: Net sales development 2024–2025
Net sales development 2024–2025 Net Sales 2024–2025 by Quarter Commentary EURm, carve out figures H2 net sales H2 net sales EUR 215.7m EUR 227.3m ● Net sales for Q4 2025 amounted to EUR 111.2m, growth of 5.5% y-o-y – Organic growth was 2.5% ● Net sales for financial year 2025 totalled EUR 426.6m (42
Slide 8: Net sales development by service area 2024–2025
Net sales development by service area 2024–2025 Net Sales 2024–2025 by Service Area Commentary EURm, carve out figures Q4 and full year 423,9 426,6 ● Net sales in the Waste Management and 111,2 Recycling declined by 1.8% and amounted 105,4 to EUR 278.1 million (283.1). 81,3 81,3 19,9 19,8 – Challeng
Slide 9: Adjusted EBITA development 2024–2025
Adjusted EBITA development 2024–2025 Adjusted EBITA 2024–2025 by Quarter Adjusted Commentary EURm and as % of net sales, carve out figures EBITA-% of CE business* 20 15,3 % 15% ● In 2025, carve out based Adjusted EBITA was 18 13,4 % EUR 40.6m (44.4), or 9.5% (10.5) of net sales 12,6 % 0,3 12,7 % 16
Slide 10: Contents: Market environment
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 10
Slide 11: Finnish retail volumes have declined significantly after 2021
Finnish retail volumes have declined significantly after 2021, contributing to lower waste generational Finnish Retail industry Municipal Solid Waste (MSW) in Finland 1,000 tonnes Finnish Retail Industry, 2015 = 100, rolling 3-month average 4 000 COVID shifted consumption from services to goods, 3 5
Slide 12: Strong decline in Finnish house building volumes since 2021
Strong decline in Finnish house building volumes since 2021, clearly affecting L&T’s waste volumes Finnish house building index (2021=100) L&T’s construction waste development New building volume Renovation volume 110 100 Potential 97 market 90 recovery would support L&T’s net sales by 80 >10m€ 70 7
Slide 13: Municipalisation of Finnish residential waste collection
Municipalisation of Finnish residential waste collection Municipalisation background and L&T Finnish residential waste collection market considerations development 2023–2028 Municipal contracts Municipal The municipal market comprises about 50% of the Residential properties (free competition) waste
Slide 14: Price development of selected recycled material indexes
Dec-22 Mar-23 (€/t) Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Recycled plastic films Sep-25 Dec-25 Jan-23 Apr-23 (€/t) Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 OCC / brown cardboard Oct-25 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Recovered pa
Slide 15: Key developments in the regulatory environment
Key developments in the regulatory environment Fair competition Measures to promote EU court 15 Jan 2026 / recycling C:2026:4 • Finnish government proposes to restrict • Tightening requirements for separate • The judgment clarifies how complex the operations of municipal waste collection of biowaste
Slide 16: Contents: Growth Strategy Execution
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 16
Slide 17: Mid-term strategic goals
Mid-term strategic goals FINANCIAL TARGETS CAPITAL STRUCTURE AND ALLOCATION Dividend Average annual Adj. EBITA- payout net sales Net debt / margin ratio of at growth of over adj. EBITDA of of 11% least 6% in the mid- 1.5x – 2.5x in the mid-term 50% of net term income © Lassila & Tikanoja 27.2.2026 1
Slide 18: Clear strategy for profitable growth
Clear strategy for profitable growth Illustrative Selective acquisitions Organic investments 3 2 1 Strengthen Geographical Waste-to-value Underlying position in expansion in and remediation market growth current service Sweden growth EUR 427m markets > 6% p.a. Q3FY2025 2025 LTM… Mid-term target Net
Slide 19: Implementation of growth strategy progressed in 2025
Implementation of growth strategy progressed in 2025 3 2 1 Strengthen Geographical Waste-to-value position in expansion in and remediation current service Sweden growth markets Reinikka, acquisition RecondConcept, acquisition Plastic recycling investments © Lassila & Tikanoja 27.2.2026 19
Slide 20: Contents: Efficiency & Operations
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 20
Slide 21: Renewed IT infra enables a data-driven operating model
Renewed IT infra enables a data-driven operating model Over the past five years, L&T has invested EUR ~25m in ICT transformation Invoicing Management Financial Management Contract Management Service Management Management of Material Flows Weighing of Material Loads Data platform Process Management S
Slide 22: Clear route to profit growth and further margin expansion
Clear route to profit growth and further margin expansion 9.5% 11% In 2025, targeted In 2025, comparable savings achieved fixed costs reduced across categories, year-on-year while especially in MRO slight growth in net and facilities sales € 40,6m Growth plan Operational excellence plan On a carve o
Slide 23: Contents: Sustainability
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 23
Slide 24: Net zero 2045 climate target
Net zero 2045 climate target Emissions from Own Operations Have Halved since 2018 Carbon footprint (tCO₂e) Scope 1 & 2 (LHS) Share of renewable diesel of total (RHS) Share of low-emission fleet of total (RHS) 45 000 90% 40 000 80% 35 000 70% 30 000 60% 25 000 50% 20 000 40% 15 000 30% 10 000 20% 5 0
Slide 25: Sustainability scorecard
Sustainability scorecard Commentary Key sustainability highlights ● Recycling rate of non-hazardous waste rose to 61.8% (60.7), supported by higher volumes of pallets and plastics. ● Overall, material volumes in construction and municipal sectors Carbon footprint Recycling rate TRIF NPS were weighed
Slide 26: Climate impacts in the value chain
Climate impacts in the value chain Emissions avoided together with customers Supply chain emissions -377,500 tCO2 e (Scope 3) 196,600 Own operations L&T’s operations annually reduce emissions by an amount that equals the emissions generated by about tCO2 e (Scope 1 & 2) 39,000 19,940 Finns. tCO2 e U
Slide 27: Contents: Financials
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 27
Slide 28: Highlights
Highlights 1 2 3 4 Improved cash Investments Strong flow in growth, Solid financial dividend balance sheet generation performance payout in line from day supported continued with Group’s one by strong strategic Q4 target © Lassila & Tikanoja 27.2.2026 28
Slide 29: Net working capital development 2024–2025
Net working capital development 2024–2025 NWC 2024 – 2025 by quarter Commentary EURm, carve out figures except for Q4 2025 ● Strong NWC release of EUR 23.5m in -6 the fourth quarter -15 ● NWC at the end of Q3 affected by Illustrative -20 project-driven business mix in Illustrative -25 environmental
Slide 30: CapEx development 2024–2025
CapEx development 2024–2025 CapEx 2024 – 2025 by quarter Commentary EURm, carve out figures Q4 and full year 16,5 41,7 ● Capital expenditure in 2025 was EUR 41.7m (36.1), an increase of EUR 5.6 million 36,1 4,8 1,8 12,5 ● The acquisition of Stena Recycling Oy’s pallet business was completed in June,
Slide 31: Cash flow development 2024–2025
Cash flow development 2024–2025 Free cash flow bridge FY2025 Commentary EURm, carve out figures 100 ● In 2025, net cash flow from 90 operations EUR 73.4m (74.0) 80 4,5 0,3 70 6,1 ● NWC was tied up by EUR 0.3m 11,1 60 ● Net cash flow after investments 20,9 50 EUR 41.4m (34.3) 40 84,3 73,4 ● Cash flow
Slide 32: Financial position at year-end 2025
Financial position at year-end 2025 Balance sheet KPIs as per 31 Dec 2025 Commentary ● Net debt / Adjusted EBITDA ratio at 1.78x at the end of 2025 - Net debt amounted to EUR 150.2m - Adjusted EBITDA was EUR 84.2m (86.0m), or 18.7% (19.8%) of net Net debt / Net interest- Equity Gearing sales Adjuste
Slide 33: Maturity structure of interest-bearing debt
Maturity structure of interest-bearing debt Maturity structure as per 31 Dec 2025 Commentary EURm ● Interest-bearing liabilities excluding IFRS 16 at EUR 125.2m Assuming that two-year - Bond EUR 75m due in 2028 extension option utilised for EUR 50m bank loan - Bank loan EUR 50m due in 2030 37 (2028
Slide 34: Key performance indicators for 2025
Key performance indicators for 2025 Commentary ● ROCE for 2025 was 10.6% on a carve out KPIs for financial year 2025 basis, affected by IAC - Indicative ROCE adjusted for IAC and carve-out principles ~11.3% ● ROE for 2025 was 12.1% on a carve out basis, affected by IAC - Indicative ROE adjusted for
Slide 35: Contents: Outlook
Contents 1 Highlights 2 Market environment 3 Growth Strategy Execution 4 Efficiency & Operations 5 Sustainability 6 Financials 7 Outlook © Lassila & Tikanoja 27.2.2026 35
Slide 36: Outlook for 2026
“In 2026, net sales are estimated to be EUR 420– 450 million and adjusted EBITA EUR 38–44 million. In 2025, the company’s net sales amounted to EUR 426.6 million and adjusted EBITA was EUR 40.6 million (on a carve-out basis).” Outlook for 2026 © Lassila & Tikanoja 27.2.2026 36
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