Slide 1: Result Presentation 2024
LASSILA & TIKANOJA RESULT PRESENTATION 2024 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 13 February 2025
Slide 2: In Focus in 2024
IN FOCUS IN 2024 The Board of Directors Profitability improved in the initiated the planning of Sustainability metrics circular economy separation of circular developed well, businesses and Facility economy businesses and especially occupational Services Finland despite a facility services businesse
Slide 3: Net Sales
NET SALES -3.9% (Organic growth -4.2%) 802.1 -2.2 4.1 -12.0 -21.4 0.0 770.7 Group Environmental Industrial Facility Services Facility Services Other Group 2023 Services Services Finland Sweden 2024 MEUR Q4/24 Q4/23 Change% 2024 2023 Change% Environmental Services 69.9 68.9 1.5 281.5 283.7 -0.8 Indus
Slide 4: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 14.1% 0.7 2.2 5.1 -3,8 1.2 37.9 43.2 Adjusted operating Environmental Industrial Facility Services Facility Services Other Adjusted operating profit 2023* Services Services Finland Sweden profit 2024 MEUR Q4/24 Q4/23* Change% 2024 2023* Change% Environmental Services* 5.4 3
Slide 5: Solid performance in circular economy businesses, development in facility services two-fold
SOLID PERFORMANCE IN CIRCULAR ECONOMY BUSINESSES, DEVELOPMENT IN FACILITY SERVICES TWO-FOLD Net sales 2020-2024 (m€) Adj. EBITDA 2020-2024 (m€) Adj. EBIT 2020-2024 (m€) Capital empl. 2020-2024 (m€) 20,2 % 20,0 % 19,7 % 19,9 % 20,2 % 419 425 427 371 CIRCULAR 341 10,2 % 10,3 % 10,4 % 9,4 % 10,0 % 292
Slide 6: Planned Demerger of Lassila & Tikanoja
PLANNED DEMERGER OF LASSILA & TIKANOJA L&T TODAY PLANNED STRUCTURE POST-2025 Existing Lassila & Tikanoja shareholders 100% 100% Facility Facility Circular Economy Facility Services Environmental Industrial Services Services Services Services Finland Sweden Facility Facility Environmental Industrial
Slide 7: Creating attractive circular economy and facility services investment cases
CREATING ATTRACTIVE CIRCULAR ECONOMY AND FACILITY SERVICES INVESTMENT CASES CIRCULAR ECONOMY BUSINESSES FACILITY SERVICES BUSINESSES Leading market position in Finland and an Established player with an improved expanding platform in Sweden operating model geared for growth, Operating in a larg
Slide 8: Profitability Improvement Programme 2025-2026
PROFITABILITY IMPROVEMENT PROGRAMME 2025-2026 Net performance improvement target: EUR >8m Comments L&T announced on 13 Dec 2024 that it has launched an efficiency programme aiming for improved performance, encompassing both the circular economy and facility services businesses The efficiency pro
Slide 9: Municipalisation of Residential Waste Collection
MUNICIPALISATION OF RESIDENTIAL WASTE COLLECTION L&T has a clear plan to mitigate negative impacts of municipalisation in the coming years. Disciplined tendering plays an important role in securing profitability of municipal contracts Illustration of Finnish residential waste collection market Illus
Slide 10: IT investments on a high level between 2022-2024
IT INVESTMENTS ON A HIGH LEVEL BETWEEN 2022-2024 DUE TO MODERNISATION OF END-OF-LIFE SYSTEMS Environmental Services systems renewal (D365) including ERP Planning Design Build Test & rollout Facility Services Sweden ERP upgrade Finance system HR & Finance system renewals HR Master renewal renewal (D3
Slide 11: Environmental Services
ENVIRONMENTAL SERVICES • Profitability improved despite the challenging business environment • The costs of service production were successfully adapted to the current market situation through the efficiency improvement measures. Number of personnel decreased by 65 year-on-year • Market share amongs
Slide 12: Industrial Services
INDUSTRIAL SERVICES • Profitable growth continued • Demand for hazardous waste services continued strong • Annual maintenance breaks were carried out as planned and resourcing was successful • In Environmental construction, the weak economic situation in the Finnish construction market was reflected
Slide 13: Facility Services Finland
FACILITY SERVICES FINLAND • All business lines achieved a better result than in the comparison period • Measures to streamline the cost structure and improve operational efficiency continued successfully. Number of personnel decreased by more than 450 employees • The demand for data-driven cleaning
Slide 14: Facility Services Sweden
FACILITY SERVICES SWEDEN • The decline in net sales and weakening of profitability were impacted by the discontinuation of a significant customer relationship in late 2023 as well as two public-sector customer agreements turning unprofitable during 2024 • The measures to simplify operating models an
Slide 15: Sustainability Score Card 2024
SUSTAINABILITY SCORE CARD 2024 • Occupational safety continued to develop well due to increased training and safety culture development Target Target Target L&T 2020 2021 2022 2023 2024 2024 2026 2030 CARBON FOOTPRINT (tCO2-ekv) 36,700 37,800 34,200 31,200 27,200 29,800 27,200 24,400 CARBON HANDPRIN
Slide 16: Q4 Financial Highlights
Q4 FINANCIAL HIGHLIGHTS Financial position solid irrespective of goodwill EPS and ROCE affected by Strong cash flow Q2-Q4 write-down and other non- non-recurring items recurring items burdening Q4 © Lassila & Tikanoja plc | Q4/2024 13 February 2025
Slide 17: Net Working Capital
NET WORKING CAPITAL Net working capital by quarter 2022-2024 (EUR million) Comments 0 Net working capital at year-end 2024 amounted to EUR -46.5m (- -10 -23 47.6m), change of EUR 1.1m year- -28 -30 on-year -35 -34 -20 -37 -42 -39 NWC almost reached previous -47 -49 -48 -47 year-end’s level despi
Slide 18: Capital Expenditure
CAPITAL EXPENDITURE Capital expenditure 2023-2024 (year-to-date, EUR million) Comments 70 Capital expenditure in January- December 2024 was EUR 37.5m 60 (60.3) showing a decrease of EUR 50 22.8 million or 37.8% The decrease is predominantly 40 attributable to Environmental 2 Services business ar
Slide 19: Net Cash Flow and Net Investments
NET CASH FLOW AND NET INVESTMENTS Cash flow from operations and investments 2023-2024 (YTD, EUR m) Comments 120 Operating cash flow in January- 100 December 2024 was EUR 81.4m (93.6), affected by weak Q1 80 94 January-December 2024 60 81 operating cash flow after 51 40 41 investments was EUR 40.
Slide 20: Financial Position
FINANCIAL POSITION • Strong financial position at year-end 2024 irrespective of Q4 one-offs affecting Group equity • Net interest-bearing debt at EUR 153.0m (160.9m), decrease of EUR 7.8m year-on-year Equity ratio and gearing by quarter 2022-2024 Net debt specification by quarter 2022-2024 MEUR 140%
Slide 21: Maturity Structure of Long-Term Loans
MATURITY STRUCTURE OF LONG-TERM LOANS Loans, MEUR Weighted average of effective interest rate 3.8% (4.0%) 80 70 60 50 35 % 40 75 30 20 40 10 65 % 0 2025 2026 2027 2028 Bond Bank loan Fixed Variable © Lassila & Tikanoja plc | Q4/2024 13 February 2025
Slide 22: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED ROCE-% development by quarter 2022-2024 (LTM) Comments 20% 2,2x Return on capital employed in 18% 2,1x Q4/2024 was 3.3% (10.1) 2,00x 16% 1,98x 2,0x burdened by one-off items and 1,92x 1,88x 1,86x 1,89x 1,88x weakened performance in Facility 14% 1,85x 1,9x 1,80x Services
Slide 23: Earnings per Share and Cash Flow per Share
EARNINGS PER SHARE AND CASH FLOW PER SHARE EPS and cash flow per share 2023-2024 (YTD, EUR) Comments 1,6 Earnings per share in January- 1,4 1,33 December 2024 was EUR -0.05 1,2 (0.77) affected by one-off items 1,07 and increase in net finance costs 1,0 year-on-year 0,74 0,77 0,78 0,8 0,64 Adjust
Slide 24: Outlook for 2025
OUTLOOK FOR 2025 Net sales in 2025 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. Q4/2020 & FY 2020 13 February 2025
Slide 25: 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 | Q4/2024 13 February 2025
Slide 26: Shareholders
SHAREHOLDERS
Slide 27: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 25 255 25 030 24 932 24 557 24 959 24 522 23 088 Others 34% 20 732 Households 43% 15 524 13 207 12 208 10 812 Foreign and nominee registered Financial and 2016 2017 2018 2019 2020 2021 2022 2023 Q1/24 Q2/24 Q3/24 Q4/24 14% insurance
Slide 28: Major Shareholders on 31 December 2024
MAJOR SHAREHOLDERS ON 31 DECEMBER 2024 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Nordic Small Cap Fund 1,706,300 4.40 Maijala Juhani 1,529,994 3.94 Bergholm Heikki 895,000 2.31 Åbo Akademi University Foundation 816,282 2.10 Ilmarinen Mutual Pension Insurance Compa
Slide 29: Appendix
APPENDIX
Slide 30: Key Figures
KEY FIGURES NET SALES Q4/2024 Q4/24 Q4/23 Change% 2024 2023 Change% Net sales, MEUR 194.2 200.9 -3.4 770.7 802.1 -3.9 18 % 36 % EBITDA, 19.1 20.5 -6.7 89.0 95.8 -7.1 MEUR Operating -18.4 6.4 9.8 37.3 -73.6 16 % 194.2 profit, MEUR MEUR Operating -9.5 3.2 1.3 4.6 margin, % Earnings per -0.56 0.13 -0.0
Slide 31: © Lassila & Tikanoja plc | Q4/2024 13 February 2025
© Lassila & Tikanoja plc | Q4/2024 13 February 2025
Slide 32: © Lassila & Tikanoja plc | Q4/2024 13 February 2025
© Lassila & Tikanoja plc | Q4/2024 13 February 2025
Slide 33: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _