Slide 1: Interim Report Q1/2024
LASSILA & TIKANOJA INTERIM REPORT Q1/2024 Eero Hautaniemi, President & CEO Valtteri Palin, CFO 26 April 2024
Slide 2: In Focus in Q1/2024
IN FOCUS IN Q1/2024 • Net sales increased in Industrial Services. The process cleaning business in Sweden expanded to the Gävleborg region through the acquisition of PF Industriservice AB • In Environmental Services efficiency measures started in Q4/2023, largely compensated for the negative effects
Slide 3: Net Sales
NET SALES -4.0% (Organic growth -4.1%) -0.9 2.0 -3.8 -5.0 192.7 0.0 185.0 Group Environmental Industrial Facility Services Facility Services Other Group 1-3/2023 Services Services Finland Sweden 1-3/2024 MEUR Q1/24 Q1/23 Change% 2023 Environmental Services 65.4 66.3 -1.4 283.7 Industrial Services 28
Slide 4: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 1.4 1.4 -0.5 -0.2 0.0 -0.3 0.7 -1.1 Adjusted operating Environmental Industrial Facility Services Facility Services Other Adjusted operating profit 1-3/2023 Services Services Finland Sweden profit 1-3/2024 MEUR Q1/24 Q1/23 Change% 2023 Environmental Services 2.7 3.2 -16.5 2
Slide 5: Operating Profit by Division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES INDUSTRIAL SERVICES MEUR MEUR 6.1 11,7 3.9 8,5 3.6 3,6 2,7 3,2 0.1 -0.4 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 FACILITY SERVICES FINLAND FACILITY SERVICES SWEDEN MEUR MEUR 3.2 -1.0 -2.0 0.2 -0.9 -2.1 1.1 0.2 -0.0 -0.1 Q1/23 Q2/
Slide 6: Environmental Services
ENVIRONMENTAL SERVICES • The challenging economic environment and the political strikes reduced demand of recycling and waste management services. The market share of the division grew slightly. Secondary raw material prices stabilised. • The restructuring and efficiency measures progressed well and
Slide 7: Industrial Services
INDUSTRIAL SERVICES • Demand remained strong in environmental construction • Political strikes in Finland weakened the demand for hazardous waste services to a small extent, and some process cleaning activities were postponed from the first quarter to the second quarter • The process cleaning busine
Slide 8: Facility Services Finland
FACILITY SERVICES FINLAND • Measures to streamline the cost structure and improve operational efficiency continued successfully • The results of the cleaning business line was stronger than in the comparison period and the demand for data-driven cleaning services grew • A provision of EUR 0.6 millio
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 fully 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 environme
Slide 10: Sustainability Score Card 1-3/2024
SUSTAINABILITY SCORE CARD 1-3/2024 • Lassila & Tikanoja published in February its Annual Review 2023, which includes a sustainability report in accordance with the Global Reporting Standard (GRI) as well as a report on risks and opportunities related to climate change in line with the Task Force on
Slide 11: Adjusted Operating Profit
ADJUSTED OPERATING PROFIT 21,2 20,3 20 15 11,0 10.6 9.9 9,6 9,2 10 7,2 5.0 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 Adjusted operating profit, MEUR Adjusted operating profit % © Lassila & Tikanoja plc | Q1/2024 26 April 2024
Slide 12: Key Figures
KEY FIGURES Q1/24 Q1/23 Change % 2023 Capital expenditure, MEUR 11.1 13.8 -19.5 60.3 Share of business acquisitions in capital expenditure, MEUR 2.0 - - Depreciation, amortisation and impairment, MEUR 13.8 14.0 -1.5 57.4 Share of result of associated companies & joint ventures 2.1 1.5 3.6 Return on
Slide 13: Net Working Capital
NET WORKING CAPITAL Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 0,0 -5,0 -3.5 -4.9 -10,0 -6.1 -5.1 -5.9 -15,0 -20,0 -25,0 -30,0 -28.5 -35,0 -40,0 -38.7 -45,0 -41.6 -50,0 -47.6 -49.5 -55,0 -60,0 Net working capital, MEUR Net working capital, % of net sales Net working capital = Current assets - income tax receivab
Slide 14: Net Cash Flow and Net Investments
NET CASH FLOW AND NET INVESTMENTS L&T reduced its factoring financing by EUR 10 million as planned during Q1 60,0 50.9 50,0 -42.7 40,0 -30.4 30,0 28.1 19.2 19.3 -19.2 20,0 -11.3 10,0 -7.7 0,0 -10,0 -9.4 -20,0 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Net cash from operating activities after investments YTD, MEU
Slide 15: Interest Bearing Debt and Liquidity
INTEREST BEARING DEBT AND LIQUIDITY 250 200 75 76 82 74 150 78 100 144 134 116 126 126 50 48 30 26 33 28 0 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Interest bearing debt, MEUR IFRS 16, MEUR Liquid assets, MEUR © Lassila & Tikanoja plc | Q1/2024 26 April 2024
Slide 16: Maturity Structure of Loans
MATURITY STRUCTURE OF LOANS Loans, MEUR Weighted average of effective interest rate 4.0% (2.8%) 80 70 60 50 35 % 40 75 30 20 40 10 65 % 0 2024 2025 2026 2027 2028 Bond Bank loan Fixed Variable Loans do not include commercial papers © Lassila & Tikanoja plc | Q1/2024 26 April 2024
Slide 17: Outlook for 2024
OUTLOOK FOR 2024 Net sales in 2024 are estimated to be at the same level as in the previous year, and operating profit is estimated to be at the same level or better compared to the previous year. Q4/2020 & FY 2020 26 April 2024
Slide 18: 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 | Q1/2024 26 April 2024
Slide 19: Shareholders
SHAREHOLDERS
Slide 20: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 24 959 25 255 24 557 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 insurance corp. 12% © Lassila & Tikanoja plc | Q1/
Slide 21: Major Shareholders on 31 March 2024
MAJOR SHAREHOLDERS ON 31 MARCH 2024 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Funds Ltd 1,710,206 4.41 Maijala Juhani 1,529,994 3.94 Mandatum Life Insurance Company Limited 1,333,367 3.44 Åbo Akademi University Foundation 1,066,282 2.75 Bergholm Heikki 875,000 2.2
Slide 22: Appendix
APPENDIX
Slide 23: Key Figures
KEY FIGURES NET SALES Q1/2024 Q1/24 Q1/23 Change% 2023 15 % Net sales, MEUR 185.0 192.7 -4.0 802.1 35 % EBITDA, 12.1 15.4 -21.7 95.8 MEUR 16 % Operating -1.7 1.4 38.4 185.0 profit, MEUR MEUR Operating -0.9 0.7 4.8 margin, % Earnings per share, -0.02 0.03 0.79 EUR 34 % 35% Environmental Services
Slide 24: © Lassila & Tikanoja plc | Q1/2024 26 April 2024
© Lassila & Tikanoja plc | Q1/2024 26 April 2024
Slide 25: © Lassila & Tikanoja plc | Q1/2024 26 April 2024
© Lassila & Tikanoja plc | Q1/2024 26 April 2024
Slide 26: Circular Economy - Made Real
CIRCULAR ECONOMY - MADE REAL _