Slide 1: Lassila & Tikanoja Interim Report Q3 2024
LASSILA & TIKANOJA INTERIM REPORT Q3 2024 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 25 October 2024
Slide 2: In focus in Q3
IN FOCUS IN Q3 Solid performance in the All business lines in Facility Sustainability metrics circular economy Services Finland improved developed well, businesses despite a their result year-on-year especially occupational challenging business cycle The turnaround programme safety metric TRIF and p
Slide 3: Net sales
NET SALES -4.1% (Organic growth -4.4%) 601.2 -3.2 5.7 -9.4 -17.8 576.5 0.0 Group Environmental Industrial Facility Services Facility Services Other Group 1-9/2023 Services Services Finland Sweden 1-9/2024 MEUR Q3/24 Q3/23 Change% 1-9/24 1-9/23 Change% 2023 Environmental Services 72.3 74.1 -2.4 211.6
Slide 4: Adjusted operating profit
ADJUSTED OPERATING PROFIT 2.7% -2.3 1.6 3.4 -3,3 1,4 31.8 32.7 Adjusted operating Environmental Industrial Facility Services Facility Services Other Adjusted operating profit 1-9/2023 Services Services Finland Sweden profit 1-9/2024 MEUR Q3/24 Q3/23 Change% 1-9/24 1-9/23 Change% 2023 Environmental S
Slide 5: Operating profit by division
OPERATING PROFIT BY DIVISION ENVIRONMENTAL SERVICES INDUSTRIAL SERVICES MEUR MEUR 6.1 6.1 5.7 11,7 3.9 8,5 10,5 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 Q3/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 FACILITY SERVICES FINLAND FACILITY SERVICES SWEDEN MEUR MEUR -1.0 -2.0 -0.9
Slide 6: Environmental Services
ENVIRONMENTAL SERVICES • The challenging business cycle affected the demand for recycling and waste management services • Market share amongst B2B customers and producer responsibility organisations remained strong • The efficiency measures started in H1 progressed well • In October, L&T announced t
Slide 7: Industrial Services
INDUSTRIAL SERVICES • Demand for hazardous waste services continued strong • Annual maintenance breaks were carried out as planned and resourcing was successful 5.6% MEUR Q3/24 Q3/23 Change% 1-9/24 1-9/23 Change% 2023 108.9 103.1 Net sales 38.8 39.0 -0.7 108.9 103.1 5.6 141.0 10.8% 9.9% EBITDA 9.0 9
Slide 8: 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 -5.0% MEUR Q3/24 Q3/23 Change% 1-9/24 1-9/23 Change% 2023 188,6 Net sales 57.4 58.8 -2.3 179.2 1
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 streamline the cost structure • The n
Slide 10: Sustainability score card 1-9/2024
SUSTAINABILITY SCORE CARD 1-9/2024 • Occupational safety continued to develop well due to increased training and safety culture development Target Target Target L&T 2020 2021 2022 2023 1-9/2023 1-9/2024 2024 2026 2030 CARBON FOOTPRINT (tCO2-ekv) 36,700 37,800 34,200 31,200 23,400 20,900 29,800 27,20
Slide 11: Adjusted operating profit
ADJUSTED OPERATING PROFIT 21,2 20,3 20,0 20 15 12,7 11,0 10.6 9.9 9,6 10.4 10 9,2 7,2 6.4 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 Q2/24 Q3/24 Adjusted operating profit, MEUR Adjusted operating profit % © Lassila & Tikanoja plc | Q3/2024 25 October
Slide 12: Q3 financial highlights
Q3 FINANCIAL HIGHLIGHTS Financial position Cash flow gradually strengthened compared to EPS and ROCE affected by improving after weak Q1 previous quarter and non-recurring items year-on-year © Lassila & Tikanoja plc | Q3/2024 25 October 2024
Slide 13: Net working capital
NET WORKING CAPITAL • Net working capital improved by EUR 1.2 million year-on-year despite decrease in net sales • Development follows the quarterly pattern evident in previous years 0 -10 -23 -28 -30 -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
Slide 14: Capital expenditure
CAPITAL EXPENDITURE • Capital expenditure January-September 2024 was EUR 29.7 million (46.0) showing a decrease of EUR 16.3 million or 35.5% • The decrease is attributable to Environmental Services 70 60 50 40 30 60 2 46 20 2 32 28 10 2 20 14 9 0 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 CapEx excl.
Slide 15: Net cash flow and net investments
NET CASH FLOW AND NET INVESTMENTS • Operating cash flow January-September 2024 was EUR 44.1 million (58.5), affected by the weak Q1 • January-September 2024 operating cash flow after investments was EUR 12.2 million (28.1) • Comparison period’s cash flow was positively impacted by significant tax re
Slide 16: Financial position
FINANCIAL POSITION • Financial position strengthened compared to previous quarter and year-on-year Equity ratio and gearing by quarter 2022-2024 Net debt specification by quarter 2022-2024 MEUR 140% 250 225 120% 34 30 22 200 20 103,3 % 102,4 % 48 30 28 30 49 26 100% 95,0 % 89,3 % 175 33 84,5 % 86,7
Slide 17: 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 | Q3/2024 25 October 2024
Slide 18: Return on capital employed
RETURN ON CAPITAL EMPLOYED • Return on capital employed in Q3/2024 was 9.0% (11.7) burdened by one-off items and weakened performance in Facility Services Sweden division 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 1,80x 12% 1,8x 11,4 % 11,5 % 11,7 % 10% 1,7x 10,4 %
Slide 19: Earnings per share and cash flow per share
EARNINGS PER SHARE AND CASH FLOW PER SHARE • Earnings per share in January-September 2024 was EUR 0.51 (0.65) affected by one-off items and increase in net finance costs year-on-year • Net operating cash flow after investments per share gradually improving after weak Q1 1,6 1,4 1,33 1,2 1,0 0,79 0,8
Slide 20: 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 21: 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 | Q3/2024 25 October 2024
Slide 22: Shareholders
SHAREHOLDERS
Slide 23: Shareholder structure
SHAREHOLDER STRUCTURE Number of shareholders Shareholder structure 25 255 25 030 24 932 24 557 24 959 23 088 Others 34% 20 732 Households 44% 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 14% insurance corp. 8% © La
Slide 24: Major shareholders on 30 September 2024
MAJOR SHAREHOLDERS ON 30 SEPTEMBER 2024 Shareholder Shares % Evald and Hilda Nissi’s Foundation 3,496,487 9.01 Nordea Nordic Small Cap Fund 1,656,300 4.27 Maijala Juhani 1,529,994 3.94 Bergholm Heikki 875,000 2.26 Åbo Akademi University Foundation 816,282 2.10 Ilmarinen Mutual Pension Insurance Comp
Slide 25: Appendix
APPENDIX
Slide 26: Key figures
KEY FIGURES NET SALES Q3/2024 Q3/24 Q3/23 Change% 1-9/24 1-9/23 Change% 2023 Net sales, 192.3 200.9 -4.3 576.5 601.2 -4.1 802.1 20 % MEUR EBITDA, 32.7 36.7 -10.8 69.9 75.3 -7.2 95.8 37 % MEUR Operating 18.9 21.1 -10.3 28.2 31.7 -11.0 38.4 13 % 192.3 profit, MEUR MEUR Operating 9.8 10.5 4.9 5.3 4.8 m
Slide 27: © Lassila & Tikanoja plc | Q3/2024 25 October 2024
© Lassila & Tikanoja plc | Q3/2024 25 October 2024
Slide 28: © Lassila & Tikanoja plc | Q3/2024 25 October 2024
© Lassila & Tikanoja plc | Q3/2024 25 October 2024
Slide 29: Circular economy - made real
CIRCULAR ECONOMY - MADE REAL _