Slide 1: Lassila & Tikanoja Half-Year Financial Report 2025
LASSILA & TIKANOJA HALF-YEAR FINANCIAL REPORT 2025 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 7 August 2025
Slide 2: Table of Contents
TABLE OF CONTENTS 1 Half-Year Financial Report 2025 2 Partial demerger Lassila & Tikanoja – Circular Economy leader in 3 the Nordics Luotea – A leading Nordic Facility services 4 platform 5 Shareholders © Lassila & Tikanoja plc | Q2/2025
Slide 3: Half-Year Financial Report 2025
1 Half-Year Financial Report 2025 2 Partial demerger Lassila & Tikanoja – Circular 3 Economy leader in the Nordics Luotea – A leading Nordic Facility 4 services platform 5 Shareholders
Slide 4: In Focus H1/2025
IN FOCUS H1/2025 Strong sustainability The Board of Directors Solid performance in performance, carbon approved demerger Circular Economy footprint decreased, plan to separate the continued, profitability and customer Circular Economy in Facility Services satisfaction (NPS) business operations impro
Slide 5: Net Sales
NET SALES -3.2% (Organic growth -3.5%) 384.2 -8.8 -6.5 2.5 0.3 371.8 Group Circular Economy Facility Services Facility Services Other Group 1-6/2024 Business Finland Sweden* 1-6/2025 MEUR Q2/25 Q2/24 Change% 1-6/25 1-6/24 Change% 2024 Circular Economy Business 109.9 115.2 -4.6 199.4 208.2 -4.2 424.0
Slide 6: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 38.5% 1,5 -0.5 4.4 -0.6 17.6 12.7 Adjusted operating Circular Economy Facility Services Facility Services Adjusted operating Other profit 1-6/2024 Business Finland Sweden profit 1-6/2025 MEUR Q2/25 Q2/24 Change% 1-6/25 1-6/24 Change% 2024 Circular Economy Business 13.5 14.0
Slide 7: Solid performance in Circular Economy businesses, Facility Services improving
SOLID PERFORMANCE IN CIRCULAR ECONOMY BUSINESSES, PERFORMANCE IN FACILITY SERVICES IMPROVING Net sales 2020-25 (m€, LTM) Adj. EBITDA 2020-25 (m€, LTM) Adj. EBIT 2020-2025 (m€, LTM) Capital empl. 2020-25 (m€) 20,2 % 20,0 % 19,7 % 20,0 % 20,3 % 20,7 % 419 422 424 415 371 CIRCULAR 341 300 300 317 84 86
Slide 8: Circular Economy Business
-4.2% 208.2 199.4 14.1% 13.8% 13.8% 13.5% 13.1% 13.0% CIRCULAR ECONOMY 8.0% 8.0% BUSINESS 1-6/24 1-6/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 • Solid performance despite the challenging business Net sales Return on capital employed (ROCE), % environment, relative profitability remained stable y-o-y Ad
Slide 9: Facility Services Finland
-5.3% 78.1% 121.8 115.3 67.8% 51.4% 5.4% 33.8% 29.2% FACILITY SERVICES 1.5% 18.6% FINLAND 1-6/24 1-6/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Net sales Return on capital employed (ROCE), % • Strong profitability improvement in January- Adjusted operating margin, % June • Revenue decreased due to a mil
Slide 10: Facility Services Sweden
4.6% 55.7 58.2 -8.2% -9.2% -11.7% -77.9% -78.1% -75.3% FACILITY SERVICES -8.3% -5.3% SWEDEN 1-6/24 1-6/25 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Net sales Return on capital employed (ROCE), % • Turnaround progressed in line with Adjusted operating margin, % expectations in the first half of 2025 • Meas
Slide 11: Profitability improvement programme progressing / case fixed costs
PROFITABILITY IMPROVEMENT PROGRAMME PROGRESSING / CASE FIXED COSTS Comments Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2024 2024 2024 2025 2025 ▪ Adjusted for externally reported IAC, L&T’s 0,0 0,0 % fixed cost base decreased by approximately EUR 5m between year-ends -20,0 2023 and 2024 -5,0 % -40,0 ▪ During H1
Slide 12: Sustainability Score Card 2025
SUSTAINABILITY SCORE CARD 2025 • Occupational safety remained on a good level. • The carbon footprint of own operations (Scope 1 and 2) decreased by 22% compared to 1-6/2024. • Customer satisfaction (NPS) reached an all-time high of 41. Target Target Target L&T 2020 2021 2022 2023 2024 1-6/2024 1-6/
Slide 13: H1 Financial Highlights
H1 FINANCIAL HIGHLIGHTS Improvement in key Refinancing of financial metrics Solid financial long-term debt in due to position and June 2025 ahead of strengthened decrease in net contemplated profitability and debt demerger cash flow © Lassila & Tikanoja plc | Q2/2025 7 August 2025 13
Slide 14: Net Working Capital
NET WORKING CAPITAL Net working capital by quarter 2023-2025 (EUR million) Comments 0 ▪ NWC at the end of Q2 amounted to EUR -29.4m (-33.7m), change -10 of EUR +4.2m year-on-year, and -28 -30 -29 change of EUR +17.1m (+13.9m) -39 -34 compared to year-end -20 -42 -49 -48 -47 -45 ▪ NWC was tied up par
Slide 15: Capital Expenditure
CAPITAL EXPENDITURE Capital expenditure 2024-2025 (year-to-date, EUR million) Comments 50 ▪ Capital expenditure in January-June 45 2025 was EUR 19.8m (21.7) showing a decrease of EUR 1.9 million or 40 8.8% 2 35 ▪ The acquisition of Stena Recycling 30 2 Oy’s pallet business was completed 25 in June 2
Slide 16: Cash Flow
CASH FLOW Cash flow from operations and investments 2023-2025 (LTM, EUR m) Comments 120 ▪ Free cash flow in January-June 100 2025 was EUR 2.4m (-3.7) ▪ Operating cash flow in H1 was 80 68 EUR 16.9m (19.3m) 66 65 60 51 57 ▪ Cash flow from investments in 94 47 40 85 88 91 74 79 81 41 90 79 H1 was EUR
Slide 17: Financial Position
FINANCIAL POSITION • Strong financial position at the end of Q2 2025. Gearing affected by FY2024 dividends and investments • Net interest-bearing debt at EUR 178.2m (194.9m), decrease of EUR 16.8m year-on-year Equity ratio and Gearing by quarter 2023-2025 Net debt specification by quarter 2023-2025
Slide 18: Maturity structure and refinancing
MATURITY STRUCTURE AND REFINANCING Maturity structure of interest-bearing liabilities as per 30 Jun 2025 (EUR m) Comments 300 ▪ Interest-bearing liabilities excluding IFRS 16 at EUR 125.3m 250 ▪ Commercial paper EUR 10m due in 2025 ▪ Bond EUR 75m due in 2028 Assuming that two-year 200 extension opti
Slide 19: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED ROCE-% development by quarter 2023-2025 (LTM) Comments 20% 2,2x ▪ Return on capital employed in 18% 2,1x Q2/2025 was 4.9% (9.7%) 16% 1,98x 2,0x burdened by one-off items 1,92x 1,88x 1,89x 1,88x 1,91x recognised in Q4 2025 14% 1,86x 1,85x 1,9x 1,83x 1,80x ▪ Adjusted ROCE ex
Slide 20: 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 1,2 1,07 ▪ Earnings per share in January- 1,0 June 2025 was EUR 0.30 (0.16) supported by improved 0,78 0,8 profitability year-on-year 0,6 0,51 ▪ Net operating cash flow after investments per share in
Slide 21: 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 7 August 2025 21
Slide 22: Partial demerger
1 Half-Year Financial Report 2025 2 Partial demerger Lassila & Tikanoja – Circular 3 Economy leader in the Nordics Luotea – A leading Nordic Facility 4 services platform 5 Shareholders
Slide 23: Demerger Plan Approved by L&T Board
DEMERGER PLAN APPROVED BY L&T BOARD • L&T board has approved the demerger plan to separate its circular economy business as a new listed company, new L&T • If the demerger takes place, there would be two separate businesses, new L&T focusing on circular economy and Luotea focusing on facility servic
Slide 24: Lassila & Tikanoja Demerger Expected on 31 December 2025
LASSILA & TIKANOJA DEMERGER IS EXPECTED ON 31 DECEMBER 2025 POST TRANSACTION LASSILA & TIKANOJA AND LUOTEA WOULD BE SEPARATE STANDALONE BUSINESSES Planned new L&T listing on Nasdaq Helsinki on 31 Lassila & Tikanoja shareholders Listing and December 2025 ownership Current L&T shareholders will have a
Slide 25: Proposed Leadership and Board
PROPOSED LEADERSHIP AND BOARD LASSILA & TIKANOJA LUOTEA Management team Management team Eero Joni Antti Mika Hautaniemi Sorsanen Niitynpää Stirkkinen CEO CFO CEO CFO Board of directors Board of directors Jukka Sakari Tuija Johan Pasi Anna-Maria Leinonen Lassila Kalpala Mild Tolppanen Ronkainen Chair
Slide 26: Preliminary Timeline for the Demerger and Listing of Lassila & Tikanoja
PRELIMINARY TIMELINE FOR THE DEMERGER AND LISTING OF LASSILA & TIKANOJA 7 Aug 2025 29 Oct 2025 Nov 2025 26 Nov 2025 4 Dec 2025 31 Dec 2025 2 Jan 2026 Publication of the Lassila & Tikanoja Listing Capital Markets Lassila & Tikanoja Completion First day of demerger plan Q3 2025 prospectus Day for Lass
Slide 27: Lassila & Tikanoja – Circular Economy leader in the Nordics
1 Half-Year Financial Report 2025 2 Partial demerger Lassila & Tikanoja – Circular 3 Economy leader in the Nordics Luotea – A leading Nordic Facility 4 services platform 5 Shareholders
Slide 28: New Lassila & Tikanoja – Circular Economy Leader in the Nordics
NEW LASSILA & TIKANOJA – CIRCULAR ECONOMY LEADER IN THE NORDICS
Slide 29: New Lassila & Tikanoja – Circular Economy Leader in the Nordics
NEW LASSILA & TIKANOJA – CIRCULAR ECONOMY LEADER IN THE NORDICS LASSILA & TIKANOJA KEY HIGHLIGHTS PURE-PLAY CIRCULAR ECONOMY LEADER Net sales by service (2024) L&T facilities EUR 415m / 6% Hazardous waste & Waste management & recycling Sales / 5YR Sales CAGR remediation 15% 67% EUR 86m / 21% Industr
Slide 30: End-to-end circular economy offering is unique and a key competitive advantage
OUR END-TO-END CIRCULAR ECONOMY OFFERING IS UNIQUE AND A KEY COMPETITIVE ADVANTAGE CUSTOMER PROCESSES 1 2 SORTING AND TREATMENT AT THE SOURCE Operations integrated into customer processes, resulting in L&T offer the infrastructure for sorting and treatment at long-standing relationships and broad ac
Slide 31: Leading position in a fragmented market
LEADING POSITION IN A FRAGMENTED MARKET WASTE MANAGEMENT INDUSTRIAL & HAZARDOUS WASTE & RECYCLING WATER & REMEDIATION 20% 23% 14% L&T L&T L&T Other Other Other players players players Company 2 L&T L&T L&T #1 Company 2 #1-2 #2 Market Market Market position1) position1) position1) Company 3 Company 3
Slide 32: L&T serves a diversified, sticky and recurring customer base
L&T SERVES A DIVERSIFIED, STICKY AND RECURRING CUSTOMER BASE DIVERSIFIED CUSTOMER BASE CONTRACTED REVENUE BASE STICKY & ATTRACTIVE CUSTOMER Share of L&T revenues Share of L&T revenues BASE 25% 3% Top 20 total ~6 years Average contract duration Top 1 13% ~140,000 18% 87% Of billing from corporate Tot
Slide 33: Resilient business with a proven track record
RESILIENT BUSINESS WITH A PROVEN TRACK RECORD STRONG REVENUE DEVELOPMENT… …WITH STABLE PROFITABILITY PROFILE Net sales (EURm) Adjusted EBITA (EURm) 6% 11% CAGR 10% 11% 10% 11% 419 422 424 371 45 45 341 39 42 35 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 RESILIENT, PREDICTABLE AND ATTRACTIVE F
Slide 34: Compelling opportunities for significant profitable growth
COMPELLING OPPORTUNITIES FOR SIGNIFICANT PROFITABLE GROWTH Illustrative III. II. Integration into I. material chains and Geographical remediation Further strengthen expansion solutions position in service markets Revenue EUR 420m EUR 2+bn EUR 5+bn EUR 3+bn Market potential Market potential Market po
Slide 35: Mid-term strategic goals
MID-TERM STRATEGIC GOALS FINANCIAL TARGETS CAPITAL STRUCTURE AND ALLOCATION Average annual net Adj. EBITA-margin Net debt / Dividend payout ratio sales growth of over of 11% adj. EBITDA of of at least 6% in the mid-term in the mid-term 1.5x - 2.5x 50% of net income Source: L&T management © Lassila &
Slide 36: Luotea – A leading Nordic Facility services platform
1 Half-Year Financial Report 2025 2 Partial demerger Lassila & Tikanoja – Circular 3 Economy leader in the Nordics Luotea – A leading Nordic 4 Facility services platform 5 Shareholders
Slide 37: Luotea – A leading Nordic Facility Services Platform
LUOTEA – A LEADING NORDIC FACILITY SERVICES PLATFORM
Slide 38: Introduction
INTRODUCTION Antti Niitynpää, SVP Facility Services Born 1972 Education: eMBA • The Board of Directors of Lassila & Tikanoja proposes the appointment of Antti Niitynpää as the CEO of Luotea • Experience: Lassila & Tikanoja Senior Vice President of Facility Services 2021 – present Several Leadership
Slide 39: Luotea – A leading Finnish facility services platform with growth platform in Sweden
LUOTEA – A LEADING FINNISH FACILITY SERVICES PLATFORM WITH GROWTH PLATFORM IN SWEDEN LUOTEA KEY HIGHLIGHTS COMPREHENSIVE OFFERING WITH NATIONWIDE PRESENCE Net sales breakdown (2024) EUR 346m / 2.2% Sales / 10YR Sales CAGR Technical services Top-3 position 26% 68% In Finland Of revenue Cleaning and 6
Slide 40: Attractive value creation potential in Facility Services
ATTRACTIVE VALUE CREATION POTENTIAL IN FACILITY SERVICES PROMISING AVENUES FOR GROWTH …offering a significant profitable growth pathway for Luotea • Cross- and up-sales in a comprehensive Nordic facility services platform Attractive market fundamentals • Unique data-driven services and energy effici
Slide 41: Unique spearhead offering creating significant benefits
UNIQUE SPEARHEAD OFFERING CREATING SIGNIFICANT BENEFITS FOR BOTH CUSTOMERS AND THE COMPANY SPEARHEAD PORTFOLIO Benefits for customers Benefits for Luotea Reduced maintenance Optimized energy Increasing share of New profitable expenses usage wallet customers Green Value of DATA DRIVEN ENERGY Increase
Slide 42: Repeatable profitability playbook providing support for successful turnaround
REPEATABLE PROFITABILITY PLAYBOOK PROVIDING SUPPORT FOR SUCCESSFUL TURNAROUND …WITH STRONG AND SUSTAINABLE RESULTS EXECUTED IN FINNISH REPEATABLE PROFITABILITY PLAYBOOK… OPERATIONS – SWEDEN CURRENTLY BEING ADDRESSED Roles and responsibilities – Finland cleaning EBIT margin - % Finland property maint
Slide 43: Growth journey to drive Luotea value creation
GROWTH JOURNEY TO DRIVE LUOTEA VALUE CREATION IDENTIFIED AND TANGIBLE GROWTH AVENUES PROVIDING STRONG FOOTHOLD FOR FUTURE SUCCESS Luotea Growth in Growth in core New Selected Outsourcing Today spearheads services segments acquisitions Above market growth in current operations through competitive pos
Slide 44: Mid-term strategic goals
MID-TERM STRATEGIC GOALS Revenue growth Average annual organic growth of 4-5% in the mid-term Profitability Adjusted EBITA margin exceeding 5% in the mid-term Cash flow Operating free cash flow of over 90% of EBITA in the mid-term Dividend policy Dividend payout at least 50% of net profit Source: L&
Slide 45: 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 7 August 2025
Slide 46: Shareholders
1 Half-Year Financial Report 2025 2 Partial demerger Lassila & Tikanoja – Circular 3 Economy leader in the Nordics Luotea – A leading Nordic Facility 4 services platform 5 Shareholders
Slide 47: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 25 255 24 557 24 959 24 522 24 317 23 088 Others 33% 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 2024 Q1/25 Q2/25 15% insurance corp. 9% © Las
Slide 48: Major Shareholders on 30 June 2025
MAJOR SHAREHOLDERS ON 30 JUNE 2025 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Nordic Small Cap Fund 1,834,300 4.73 Maijala Juhani 1,529,994 3.94 Bergholm Heikki 895,057 2.31 Åbo Akademi University Foundation 816,282 2.10 Ilmarinen Mutual Pension Insurance Company 7
Slide 49: Appendix
APPENDIX
Slide 50: Key Figures
KEY FIGURES NET SALES Q2/2025 Q2/25 Q2/24 Change% 1-6/25 1-6/24 Change% 2024 Net sales, 196.3 199.2 -1.5 371.8 384.2 -3.2 770.7 15 % MEUR EBITDA, 27.3 25.1 8.8 44.5 37.2 19.7 89.0 MEUR Operating 13.0 11.0 18.4 16.7 9.3 79.7 9.8 196.3 56 % profit, MEUR MEUR Operating 6.6 5.5 4.5 2.4 1.3 29 % margin,
Slide 51: © Lassila & Tikanoja plc | Q2/2025 7 August 2025
© Lassila & Tikanoja plc | Q2/2025 7 August 2025
Slide 52: © Lassila & Tikanoja plc | Q2/2025 7 August 2025
© Lassila & Tikanoja plc | Q2/2025 7 August 2025
Slide 53: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _