2016-04-27 07:00:01 CEST
2016-04-27 07:00:01 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January – 31 March 2016
- Net sales for the first quarter EUR 160.7 million (EUR 157.3 million)
- Operating profit EUR 6.8 million (EUR 6.5 million)
- Earnings per share EUR 0.14 (EUR 0.14).
- Full-year net sales and operating profit in 2016 are expected to remain at
the 2015 level or improve slightly.
CEO PEKKA OJANPÄÄ:
“The economic recession kept the business environment challenging.
Nevertheless, our net sales increased, primarily due to strategically targeted
acquisitions. The company’s profitability remained at a good level considering
the market situation due to previously implemented efficiency improvement
measures. In line with our strategy, our focus in the prevailing economic
climate is on strengthening our market position and ensuring profitability and
cash flow.”
GROUP NET SALES AND FINANCIAL PERFORMANCE
January–March
Lassila & Tikanoja’s net sales for the first quarter increased by 2.1% to EUR
160.7 million (EUR 157.3 million). Operating profit totalled EUR 6.8 million
(EUR 6.5 million). The result of the comparison period was weighed down by
restructuring costs of EUR 0.9 million. Earnings per share were EUR 0.14 (EUR
0.14).
In the first quarter, net sales grew organically in Industrial Services and
through acquisitions in Facility Services and Environmental Services. Net sales
decreased slightly in Renewable Energy Sources.
Operating profit improved in Facility Services and Industrial Services and
declined in Environmental Services. The operating profit of Renewable Energy
Sources was unchanged from the comparison period.
The operating profit in the comparison period in 2015 was affected by
non-recurring restructuring costs of EUR 0.9 million related to the loss-making
renovation business (formerly the damage repair services business) that were
recognised in the first quarter.
Financial summary
1–3/2016 1–3/2015 Change % 1–12/ 2015
------------------------------------------------------------------------
------------------------------------------------------------------------
Net sales, EUR million 160.7 157.3 2.1 646.3
Operating profit, EUR million 6.8 6.5 4.4 49.9
Operating margin, % 4.2 4.1 7.7
Profit before tax, EUR million 6.9 7.0 -2.5 47.7
Earnings per share, EUR 0.14 0.14 -1.4 0.98
EVA, EUR million 1.8 1.7 5.9 30.3
------------------------------------------------------------------------
NET SALES AND OPERATING PROFIT BY DIVISION
Environmental Services
The division’s net sales for the first quarter increased by 1.4% to EUR 61.8
million (EUR 60.9 million). The increase in net sales was due to acquisitions.
Operating profit totalled EUR 5.4 million (EUR 6.5 million).
The operating profit of the Environmental Services division was decreased by
the lower volume of recyclable materials at recycling plants and the continued
low market prices of secondary raw materials.
Net sales decreased slightly in operations in Russia. Operating profit improved
year-on-year.
Industrial Services
The division’s net sales for the first quarter increased by 7.2% to EUR 15.9
million (EUR 14.8 million). Operating profit was EUR -0.3 million (EUR -0.4
million).
The net sales of the division’s services grew particularly in process cleaning
and, with the exception of hazardous waste services, were higher than in the
comparison period across all service lines.
Reduced demand for services led to lower operating profit for hazardous waste
services. Operating profit improved in process cleaning and sewer maintenance.
The operating profit of environmental construction was unchanged from the
comparison period.
Facility Services
The division’s net sales for the first quarter increased by 2.2% to EUR 72.2
million (EUR 70.7 million). The growth in net sales was primarily due to
acquisitions. Operating profit totalled EUR 1.2 million (EUR 0.3 million). The
operating profit in the comparison period in 2015 was affected by non-recurring
restructuring costs of EUR 0.9 million related to the loss-making renovation
business (formerly the damage repair services business) that were recognised in
the first quarter.
Net sales grew in cleaning and renovation services but declined in property
maintenance. Net sales increased in the maintenance of technical systems
business due to acquisitions.
The maintenance of technical systems and renovation businesses achieved a
substantial increase in profitability following efficiency improvement measures
implemented last year. The positive development of the result of the renovation
business was also supported by the demand for services being higher than in the
comparison period.
The profitability of the cleaning business was weighed down by intense price
competition. The business in Sweden was similar to the previous year.
Renewable Energy Sources
The first quarter net sales of Renewable Energy Sources (L&T Biowatti)
decreased by 1.1% to EUR 12.8 million (EUR 12.9 million). Operating profit
totalled EUR 0.7 million (EUR 0.7 million).
The division’s net sales was influenced particularly by the demand for forest
energy being weaker than in the previous year. Nevertheless, operating profit
remained unchanged year-on-year due to the more efficient operations.
FINANCING
Cash flow from operating activities in the first quarter was affected by EUR 52
million in advance payments of employment pension contributions. Unlike in the
previous year, in 2016 the entire year’s contributions were paid in January. In
previous years, the payments have been made in four instalments. The change in
the payment schedule will have no effect on the full-year cash flow.
Cash flow from operating activities amounted to EUR -18.9 million (EUR 18.6
million). A total of EUR 31.9 million in working capital was committed (EUR 3.3
million released).
At the end of the period, interest-bearing liabilities amounted to EUR 115.6
million (EUR 105.2 million).
Net interest-bearing liabilities amounted to EUR 96.5 million (EUR 71.9
million), showing an increase of EUR 54.7 million from the beginning of the
year and an increase of EUR 24.6 million from the comparison period.
Net financial expenses in the first quarter were positive, amounting to EUR 0.1
million (EUR 0.5 million) Net financial expenses were 0.0% (0.3%) of net sales.
The average interest rate on long-term loans (with interest rate hedging) was
1.5% (1.6%). Long-term loans totalling EUR 34.6 million will mature in 2016.
The equity ratio was 40.0% (41.9%) and the gearing rate was 52.4 (39.2). Liquid
assets at the end of the period amounted to EUR 19.1 million (EUR 33.2
million).
Of the EUR 100 million commercial paper programme, EUR 20 million (EUR 10.0
million) was in use at the end of the period. A committed limit totalling EUR
30.0 million was not in use, as was the case in the comparison period.
DISTRIBUTION OF ASSETS
The Annual General Meeting held on 17 March 2016 resolved that a dividend of
EUR 0.85 per share be paid on the basis of the balance sheet that was adopted
for the financial year 2015. The dividend, totalling EUR 32.6 million, was paid
to shareholders on 30 March 2016.
CAPITAL EXPENDITURE
Gross capital expenditure in the first quarter of 2016 totalled EUR 7.9 million
(EUR 9.5 million), consisting primarily of machine and equipment purchases,
investments in information systems and acquisitions. Of the significant ongoing
information system projects, the deployment of the new ERP system for Facility
Services and the first deployments of new financial systems will take place in
late 2016 and early 2017.
PERSONNEL
In the first quarter, the average number of employees converted into full-time
equivalents was 6,891 (6,762). At the end of the period, Lassila & Tikanoja had
8,034 (7,842) full-time and part-time employees. Of these, 7,168 (7,041) worked
in Finland and 866 (801) in other countries.
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading on Nasdaq Helsinki in January–March 2016, excluding the
shares held by the company in Lassila & Tikanoja plc, was 1,702,567 shares,
which is 4.4% (9.0%) of the average number of outstanding shares. The value of
trading was EUR 27.5 million (EUR 59.3 million). The highest share price was
EUR 18.25 and the lowest EUR 14.56. The closing price was EUR 15.99. At the end
of the period, the market capitalisation excluding the shares held by the
company was EUR 613.7 million (EUR 667.3 million).
Own shares
At the end of the period, the company held 420,868 of its own shares,
representing 1.1% of all shares and votes.
Share capital and number of shares
The company’s registered share capital amounts to EUR 19,399,437 and the number
of outstanding shares is 38,378,006. The average number of shares excluding the
shares held by the company was 38,365,943.
Shareholders
At the end of the period, the company had 10,413 (9,958) shareholders.
Nominee-registered holdings accounted for 19.9% (19.3%) of the total number of
shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 17 March 2016 authorised Lassila & Tikanoja
plc’s Board of Directors to make decisions on the repurchase of the company’s
own shares using the company’s unrestricted equity. In addition, the Annual
General Meeting authorised the Board of Directors to decide on the share issue
and the issuance of special rights entitling their holders to shares.
The Board of Directors is authorised to purchase a maximum of 2,000,000 company
shares (5.2% of the total number of shares). The repurchase authorisation is
effective for 18 months.
The Board of Directors is authorised to decide on the issuance of new shares or
shares which may be held by the company through a share issue and/or issuance
of option rights or other special rights conferring entitlement to shares,
referred to in Chapter 10, Section 1 of the Finnish Companies Act, so that
under the authorisation, a maximum of 2,000,000 shares (5.2% of the total
number of shares) may be issued and/or conveyed. The share issue authorisation
is effective for 18 months.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting, which was held on 17 March 2016, adopted the
financial statements and consolidated financial statements for 2015 and
released the members of the Board of Directors and the President and CEO from
liability.
The Annual General Meeting resolved that a dividend of EUR 0.85 per share,
totalling EUR 32.6 million, be paid on the basis of the balance sheet adopted
for the financial year 2015. It was decided that the dividend be paid on 30
March 2016.
The Annual General Meeting confirmed the number of members of the Board of
Directors as six. Heikki Bergholm, Eero Hautaniemi, Laura Lares, Sakari Lassila
and Miikka Maijala were re-elected, and Teemu Kangas-Kärki was elected as a new
member, to the Board until the end of the following Annual General Meeting.
KPMG Oy Ab, Authorised Public Accountants, was elected auditor. KPMG Oy Ab
named Lasse Holopainen, Authorised Public Accountant, as its principal auditor.
The resolutions of the Annual General Meeting were announced in more detail in
a stock exchange release on 17 March 2016.
BOARD OF DIRECTORS
The members of Lassila & Tikanoja plc’s Board of Directors are Heikki Bergholm,
Eero Hautaniemi, Teemu Kangas-Kärki, Laura Lares, Sakari Lassila and Miikka
Maijala. At its constitutive meeting after the Annual General Meeting, the
Board of Directors elected Heikki Bergholm as Chairman of the Board and Eero
Hautaniemi as Vice Chairman.
Eero Hautaniemi was elected as Chairman and Sakari Lassila and Teemu
Kangas-Kärki as members of the Audit Committee. Heikki Bergholm was elected as
the Chairman of the Personnel Committee and Miikka Maijala and Laura Lares as
members of the committee.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 4, CHAPTER 6 OF THE
SECURITIES MARKET ACT
On 4 January 2016, the company announced that it had concluded the repurchase
of its own shares that was announced on 2 September 2015. The repurchase of the
company’s own shares began on 15 September 2015 and the repurchase programme
ended on 31 December 2015. The final share purchase was realised on 21 December
2015. A total of 253,406 shares were purchased during the repurchase programme.
As of the conclusion of the repurchase programme, the company holds a total of
437,721 of its own shares, which corresponds to 1.1% of shares and votes.
On 3 February 2016, the company announced a change to its target range for
gearing for the strategy period 2014–2018. The new range is 0–70 per cent. The
previous range was 30–80 per cent. The change is based on the company’s strong
cash flow as well as the need to prepare for potential acquisitions and other
capital expenditure.
NEAR-TERM RISKS AND UNCERTAINTIES
Economic uncertainty may result in significant changes in the secondary raw
material markets for Environmental Services and the demand for Facility
Services and Industrial Services.
Low prices for fossil fuels may affect the demand of the recovered and
renewable fuels produced by the company.
The company is preparing to deploy new ERP and financial management systems in
late 2016 and early 2017. The deployment of the new systems may lead to
temporary overlapping costs arising from changes in the operating model, which
can have a negative effect on the company’s result.
More detailed information on L&T’s risks and risk management is available in
the 2015 Annual Report, and in the Report of the Board of Directors and the
consolidated financial statements.
OUTLOOK FOR THE YEAR 2016
Full-year net sales and operating profit in 2016 are expected to remain at the
2015 level or improve slightly.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY – 31 MARCH 2016
CONSOLIDATED INCOME STATEMENT
EUR million 1–3/201 1–3/201 1-12/20
6 5 15
--------------------------------------------------------------------------------
Net sales 160.7 157.3 646.3
Cost of sales -147.7 -143.1 -572.0
--------------------------------------------------------------------------------
Gross profit 12.9 14.2 74.2
Other operating income 0.9 0.4 3.7
Sales and marketing expenses -3.4 -3.3 -12.9
Administrative expenses -3.0 -3.3 -13.0
Other operating expenses -0.6 -1.5 -2.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 6.8 6.5 49.9
Financial income 0.4 1.0 0.3
Financial expenses -0.3 -0.5 -2.5
--------------------------------------------------------------------------------
Profit before tax 6.9 7.0 47.7
Income taxes -1.4 -1.5 -9.7
--------------------------------------------------------------------------------
Profit for the period 5.5 5.6 37.9
Attributable to:
Equity holders of the company 5.5 5.6 37.9
Non-controlling interest 0.0 0.0 0.0
Earnings per share attributable to equity holders of
the parent company:
Earnings per share, EUR 0.14 0.14 0.98
Diluted earnings per share, EUR 0.14 0.14 0.98
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million 1–3/201 1–3/201 1-12/201
6 5 5
--------------------------------------------------------------------------------
Profit for the period 5.5 5.6 37.9
Items not to be recognised through profit or loss
Items arising from re-measurement of defined benefit 0.0 - 0.1
plans
--------------------------------------------------------------------------------
Items not to be recognised through profit or loss, 0.0 - 0.1
total
Items potentially to be recognised through profit or
loss
Hedging reserve, change in fair value 0.0 0.2 0.4
Currency translation differences 0.0 0.5 0.1
Currency translation differences recognised in 0.0 0.0 0.0
profit or loss
Currency translation differences, non-controlling 0.0 0.0 0.0
interest
--------------------------------------------------------------------------------
Items potentially to be recognised through profit or 0.1 0.7 0.4
loss, total
--------------------------------------------------------------------------------
Total comprehensive income, after tax 5.5 6.3 38.4
Attributable to:
Equity holders of the company 5.5 6.3 38.5
Non-controlling interest 0.0 0.0 0.0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 3/2016 3/2015 12/2015
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 116.6 110.9 113.7
Customer contracts arising from acquisitions 5.8 5.7 5.4
Agreements on prohibition of competition 0.2 0.1 0.2
Other intangible assets arising from business 0.6 0.7 0.6
acquisitions
Other intangible assets 16.9 10.5 15.0
--------------------------------------------------------------------------------
140.0 127.9 134.9
Property, plant and equipment
Land 5.0 5.1 5.0
Buildings and constructions 39.6 43.1 39.9
Machinery and equipment 103.7 109.7 111.0
Other 0.1 0.1 0.1
Prepayments and construction in progress 5.9 2.2 5.5
--------------------------------------------------------------------------------
154.3 160.2 161.5
Other non-current assets
Available-for-sale investments 0.6 0.6 0.6
Finance lease receivables 1.8 2.9 2.1
Deferred tax assets 2.3 2.8 2.4
Other receivables 1.9 2.2 2.0
--------------------------------------------------------------------------------
6.6 8.4 7.0
Total non-current assets 301.0 296.5 303.4
Current assets
Inventories 23.5 23.7 23.6
Trade and other receivables 88.1 93.8 84.4
Derivative receivables 0.0 0.0 0.0
Prepayments 41.1 3.2 0.3
Current available-for-sale financial assets 0.0 0.0 5.0
Cash and cash equivalents 19.1 33.2 49.0
--------------------------------------------------------------------------------
Total current assets 171.9 154.1 162.4
Total assets 472.9 450.5 465.8
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
EUR million 3/2016 3/2015 12/2015
--------------------------------------------------------------------------------
Equity
Equity attributable to equity holders of the parent
company
Share capital 19.4 19.4 19.4
Other reserves -3.3 -3.1 -3.4
Invested unrestricted equity reserve 0.4 0.5 0.5
Retained earnings 162.1 161.0 156.8
Profit for the period 5.5 5.6 37.9
--------------------------------------------------------------------------------
184.1 183.4 211.2
Non-controlling interest 0.1 0.2 0.1
--------------------------------------------------------------------------------
Total equity 184.3 183.6 211.4
Liabilities
Non-current liabilities
Deferred tax liabilities 24.5 24.4 24.9
Retirement benefit obligations 0.9 1.0 0.9
Provisions 4.1 4.2 4.1
Interest-bearing liabilities 60.8 70.9 61.0
Other liabilities 0.4 0.3 0.4
--------------------------------------------------------------------------------
90.7 100.7 91.2
Current liabilities
Interest-bearing liabilities 54.8 34.3 34.9
Trade and other payables 137.9 126.2 121.9
Derivative liabilities 0.8 0.9 1.1
Tax liabilities 1.3 1.3 1.4
Provisions 3.1 3.5 3.9
--------------------------------------------------------------------------------
197.9 166.2 163.2
Total liabilities 288.6 266.9 254.4
Total equity and liabilities 472.9 450.5 465.8
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 1–3/20 1–3/20 1–12/20
16 15 15
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 5.5 5.6 37.9
Adjustments
Income taxes 1.4 1.5 9.7
Depreciation and impairment 9.9 10.1 40.0
Financial income and expenses -0.1 -0.5 2.2
Gain on sale of shares 0.0 0.0 0.0
Other -1.2 0.5 0.7
--------------------------------------------------------------------------------
Net cash generated from operating activities before 15.5 17.1 90.6
change in working capital
Change in working capital
Change in trade and other receivables -42.1 -1.3 11.8
Change in inventories 0.1 -1.2 -1.0
Change in trade and other payables 10.1 5.8 -1.3
--------------------------------------------------------------------------------
Change in working capital -31.9 3.3 9.5
Interest paid -0.3 -0.5 -1.7
Interest received 0.1 0.1 0.3
Income taxes -2.3 -1.4 -8.9
--------------------------------------------------------------------------------
Net cash from operating activities -18.9 18.6 89.8
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of cash -1.8 -1.8 -6.5
acquired
Proceeds from sale of subsidiaries and businesses, net - 0.0 -
of sold cash
Prepayments for Group companies and businesses - - -3.6
Purchases of property, plant and equipment and -5.7 -7.8 -37.6
intangible assets
Proceeds from sale of property, plant and equipment and 0.0 0.0 0.0
intangible assets
Purchases of available-for-sale investments - 0.0 -
Change in other non-current receivables 0.4 0.3 1.7
Dividends received 0.0 0.0 0.0
--------------------------------------------------------------------------------
Net cash used in investing activities -7.1 -9.3 -46.1
Cash flows from financing activities
Change in short-term borrowings 20.0 10.0 0.2
Proceeds from long-term borrowings - 0.0 25.0
Repayments of long-term borrowings -0.3 -0.8 -25.2
Dividends paid and other asset distribution -28.7 -29.0 -29.0
Acquisition of own shares - -0.4 -4.7
L&T Recoil Oy guarantee commitment - 0.0 -
Other financing items 0.0 0.0 0.0
--------------------------------------------------------------------------------
Net cash generated from financing activities -9.0 -20.1 -33.7
Net change in liquid assets -35.0 -10.9 10.0
Liquid assets at beginning of period 54.0 44.0 44.0
Effect of changes in foreign exchange rates 0.0 0.1 0.0
--------------------------------------------------------------------------------
Liquid assets at end of period 19.1 33.2 54.0
Liquid assets
EUR million 1–3/20 1–3/20 1–12/20
16 15 15
--------------------------------------------------------------------------------
Cash and cash equivalents 19.1 33.2 49.0
Available-for-sale financial assets 0.0 0.0 5.0
--------------------------------------------------------------------------------
Total 19.1 33.2 54.0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR Share Curren Revalu Hedgin Invest Retain Equity Non-co Total
millio capita cy ation g ed ed attribu ntroll equity
n l transl reserv reserv unrest earnin table ing
ation e e ricted gs to intere
differ equity equity st
ences reserv holders
e of the
parent
company
--------------------------------------------------------------------------------
Equity 19.4 -3.0 0.0 -0.9 0.3 190.3 206.2 0.2 206.3
on 1
Jan.
2015
Total
compre
hensive
income
Profit 5.6 5.6 0.0 5.6
for
the
period
Items 0.0 0.0
arisin
g from
re-mea
suremen
t of
define
d
benefi
t plans
Hedging 0.3 -0.1 0.2 0.2
reserv
e,
change
in
fair
value
Availab 0.0 0.0
le-for-
sale
financ
ial
assets
Currenc 0.5 0.5 0.0 0.5
y
transl
ation
differ
ences
--------------------------------------------------------------------------------
Total 0.5 0.3 5.5 6.3 0.0 6.3
compre
hensive
income
Transac
tions
with
shareh
olders
Share-b 0.1 0.1 0.3 0.3
ased
benefi
ts
Dividen -29.0 -29.0 -29.0
ds paid
Dividen 0.0 0.0
ds
return
ed
Capital -0.4 -0.4 -0.4
repaym
ent
--------------------------------------------------------------------------------
Transac 0.1 -29.2 -29.1 -29.1
tions
with
shareh
olders,
total
Other 0.0 0.0 0.0
change
s
--------------------------------------------------------------------------------
Equity 19.4 -2.5 0.0 -0.6 0.5 166.6 183.4 0.2 183.6
on 31
Mar.
2015
EUR Share Curren Revalu Hedgin Invest Retain Equity Non-co Total
millio capita cy ation g ed ed attribu ntroll equity
n l transl reserv reserv unrest earnin table ing
ation e e ricted gs to intere
differ equity equity st
ences reserv holders
e of the
parent
company
--------------------------------------------------------------------------------
Equity 19.4 -2.9 0.0 -0.4 0.5 194.7 211.2 0.1 211.4
on 1
Jan.
2016
Total
compre
hensive
income
Profit 5.5 5.5 0.0 5.5
for
the
period
Items 0.0 0.0
arisin
g from
re-mea
suremen
t of
define
d
benefi
t plans
Hedging 0.0 0.0 0.0
reserv
e,
change
in
fair
value
Availab 0.0 0.0
le-for-
sale
financ
ial
assets
Currenc 0.0 0.0 0.0 0.0
y
transl
ation
differ
ences
--------------------------------------------------------------------------------
Total 0.0 0.0 5.5 5.5 0.0 5.5
compre
hensive
income
Transac
tions
with
shareh
olders
Share-b 0.0 0.2 0.2 0.2
ased
benefi
ts
Dividen -32.6 -32.6 -32.6
ds paid
Dividen - -
ds
return
ed
Acquisi - -
tion of
own
shares
--------------------------------------------------------------------------------
Transac 0.0 -32.4 -32.5 -32.5
tions
with
shareh
olders,
total
Other -0.2 -0.2 -0.2
change
s
--------------------------------------------------------------------------------
Equity 19.4 -2.9 0.0 -0.4 0.4 167.6 184.1 0.1 184.2
on 31
Mar.
2016
KEY FIGURES
1–3/201 1–3/201 1–12/201
6 5 5
--------------------------------------------------------------------------------
Earnings per share, EUR 0.14 0.14 0.98
Diluted earnings per share, EUR 0.14 0.14 0.98
Cash flow from operating activities/share, EUR 0.18 0.48 2.33
EVA, EUR million 1.8 1.7 30.3
Gross capital expenditure, EUR million 7.9 9.5 49.6
Depreciation, amortisation and impairment, EUR 9.9 10.1 40.0
million
Equity per share, EUR 4.80 4.75 5.51
Return on equity, % (ROE) 11.0 11.4 18.2
Return on invested capital, ROI, % 9.4 10.2 16.5
Equity ratio, % 40.0 41.9 46.5
Gearing, % 52.4 39.2 19.8
Net interest-bearing liabilities, EUR million 96.5 71.9 41.8
Average number of employees in full-time equivalents 6,891 6,762 7,099
Total number of full-time and part-time employees at 8,034 7,842 8,085
end of period
Number of outstanding shares adjusted for issues,
1,000 shares
average during the period 38,366 38,610 38,590
at end of period 38,378 38,615 38,361
average during the period, diluted 38,381 38,622 38,605
ACCOUNTING POLICIES
This interim report is in compliance with the IAS 34 (Interim Financial
Reporting) standard.
The interim report has been prepared with application of the IFRS standards and
interpretations in effect on 31 December 2015.
More detailed information on accounting policies is presented in the
consolidated financial statements of Lassila & Tikanoja plc dated 31 December
2015.
The information presented in the interim report has not been audited.
SEGMENT INFORMATION
Net sales
1–3/2016 1–3/2015
EUR million Extern Inter-di Total Extern Inter-div Total Total net
al vision al ision sales, change
%
--------------------------------------------------------------------------------
Environmental 60.9 0.9 61.8 60.1 0.8 60.9 1.4
Services
Industrial 15.6 0.3 15.9 14.4 0.4 14.8 7.2
Services
Facility 71.4 0.8 72.2 69.9 0.8 70.7 2.2
Services
Renewable 12.8 0.0 12.8 12.9 0.1 12.9 -1.1
Energy
Sources
Eliminations -2.1 -2.1 -2.1 -2.1
--------------------------------------------------------------------------------
Total 160.7 0.0 160.7 157.3 0.0 157.3 2.1
12/2015
EUR million Extern Inter-di Total
al vision
---------------------------------------
Environmental 253.1 3.4 256.5
Services
Industrial 75.0 2.0 77.0
Services
Facility 279.0 4.0 282.9
Services
Renewable 39.2 0.2 39.4
Energy
Sources
Eliminations -9.5 -9.5
---------------------------------------
Total 646.3 0.0 646.3
Operating profit
EUR million 1–3/2016 % 1–3/2015 % 12/2015 %
-----------------------------------------------------------------------------
Environmental Services 5.4 8.8 6.5 10.7 35.8 14.0
Industrial Services -0.3 -2.0 -0.4 -2.5 6.8 8.9
Facility Services 1.2 1.6 0.3 0.5 8.1 2.9
Renewable Energy Sources 0.7 5.1 0.7 5.5 2.1 5.3
Group administration and other -0.1 -0.7 -3.0
-----------------------------------------------------------------------------
Total 6.8 4.2 6.5 4.1 49.9 7.7
OTHER SEGMENT INFORMATION
EUR million 1–3/2016 1–3/2015 12/2015
-----------------------------------------------------------
Assets
Environmental Services 222.9 213.8 214.2
Industrial Services 71.5 68.9 71.4
Facility Services 130.4 103.1 97.6
Renewable Energy Sources 23.7 25.3 23.3
Group administration and other 0.8 1.3 1.0
Unallocated assets 23.6 38.1 58.2
-----------------------------------------------------------
L&T total 472.9 450.5 465.8
Liabilities
Environmental Services 56.3 50.2 52.1
Industrial Services 22.0 20.2 21.9
Facility Services 53.2 52.5 49.8
Renewable Energy Sources 8.9 6.9 4.8
Group administration and other 5.5 4.8 2.1
Unallocated liabilities 142.7 132.4 123.7
-----------------------------------------------------------
L&T total 288.6 266.9 254.4
EUR million 1–3/2016 1–3/2015 12/2015
-----------------------------------------------------------
Capital expenditure
Environmental Services 4.2 4.7 24.4
Industrial Services 0.9 0.9 7.5
Facility Services 2.7 3.9 17.3
Renewable Energy Sources 0.0 0.0 0.3
Group administration and other 0.0 0.0 0.0
-----------------------------------------------------------
L&T total 7.9 9.5 49.6
Depreciation and amortisation
Environmental Services 5.0 5.0 19.9
Industrial Services 1.6 1.8 6.6
Facility Services 3.2 3.3 13.3
Renewable Energy Sources 0.1 0.1 0.3
Group administration and other 0.0 0.0 0.0
-----------------------------------------------------------
L&T total 9.9 10.1 40.0
INCOME STATEMENT BY QUARTER
EUR million 1–3/2016 10–12/201 7–9/2015 4–6/2015 1–3/2015
5
--------------------------------------------------------------------------------
Net sales
Environmental Services 61.8 64.2 64.7 66.5 60.9
Industrial Services 15.9 20.3 21.0 20.8 14.8
Facility Services 72.2 71.7 70.5 70.1 70.7
Renewable Energy Sources 12.8 11.7 5.6 9.1 12.9
Interdivision net sales -2.1 -2.8 -2.3 -2.4 -2.1
--------------------------------------------------------------------------------
L&T total 160.7 165.2 159.6 164.2 157.3
Operating profit
Environmental Services 5.4 7.4 11.0 10.8 6.5
Industrial Services -0.3 1.8 2.9 2.5 -0.4
Facility Services 1.2 1.0 4.9 1.8 0.3
Renewable Energy Sources 0.7 0.3 0.6 0.5 0.7
Group administration and -0.1 -1.0 -0.1 -1.2 -0.7
other
--------------------------------------------------------------------------------
L&T total 6.8 9.7 19.3 14.4 6.5
Operating margin
Environmental Services 8.8 11.6 17.0 16.3 10.7
Industrial Services -2.0 9.1 13.7 11.9 -2.5
Facility Services 1.6 1.5 6.9 2.6 0.5
Renewable Energy Sources 5.1 2.6 9.9 5.8 5.5
--------------------------------------------------------------------------------
L&T total 4.2 5.9 12.1 8.8 4.1
Financial income and 0.1 -1.0 -1.0 -0.8 0.5
expenses, net
--------------------------------------------------------------------------------
Profit before tax 6.9 8.6 18.4 13.6 7.0
BUSINESS ACQUISITIONS, COMBINED
1–3/2016 1–3/2015 1–12/2015
EUR million Fair value Fair value Fair value
--------------------------------------------------------------------------------
Intangible assets 1.0 1.0 2.5
Property, plant and equipment 1.8 0.2 1.6
Investments 0.0 0.0 0.0
Receivables 2.4 0.1 1.4
Cash and cash equivalents 0.0 0.8 0.9
--------------------------------------------------------------------------------
Total assets 5.1 2.1 6.4
Interest-bearing liabilities - - -
Other liabilities 1.0 0.3 2.3
Deferred tax liabilities 0.0 0.1 0.3
--------------------------------------------------------------------------------
Total liabilities 1.0 0.4 2.6
Net assets acquired 4.1 1.7 3.8
Total consideration 8.8 2.6 7.4
Goodwill 4.7 0.9 3.6
Effect on cash flow
Consideration paid in cash -8.8 -2.6 -7.4
Cash and cash equivalents of the acquired 0.0 0.8 0.9
company
--------------------------------------------------------------------------------
Cash flow from investing activities -8.8 -1.8 -6.5
CHANGES IN INTANGIBLE ASSETS
EUR million 1–3/2016 1–3/2015 1–12/2015
---------------------------------------------------------------------
Carrying amount at beginning of period 134.9 125.7 125.7
Business acquisitions 1.4 1.9 6.0
Other capital expenditure 2.5 1.4 7.9
Disposals 0.0 0.0 0.0
Depreciation and impairment -1.3 -1.2 -5.0
Transfers between items 2.6 0.0 0.0
Exchange differences 0.0 0.1 0.2
---------------------------------------------------------------------
Carrying amount at end of period 140.0 127.9 134.9
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 1–3/2016 1–3/2015 1–12/2015
---------------------------------------------------------------------
Carrying amount at beginning of period 161.5 162.1 162.1
Business acquisitions 0.8 0.2 4.1
Other capital expenditure 3.2 6.0 31.5
Disposals -0.2 -0.3 -0.9
Depreciation and impairment -8.6 -8.9 -35.1
Transfers between items -2.6 0.0 0.0
Exchange differences 0.2 1.0 -0.2
---------------------------------------------------------------------
Carrying amount at end of period 154.3 160.2 161.5
CAPITAL COMMITMENTS
EUR million 1–3/2016 1–3/2015 1–12/2015
------------------------------------------------------------
Intangible assets 0.1 0.1 -
Property, plant and equipment 4.6 7.0 6.3
------------------------------------------------------------
Total 4.7 7.1 6.3
FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
EUR Financial Loans Availab Financia Derivat Carryi Fair Fair
millio assets and and le-for- l ives ng values value
n liabilitie other sale liabilit under amount by hierar
31 s at fair receiv financi ies hedge s by balance chy
March value ables al measured account balanc sheet level
2016 through assets at ing e item
profit or amortise sheet
loss d cost item
--------------------------------------------------------------------------------
Non-cur
rent
financ
ial
assets
Availab 0.6 0.6 0.6 3
le-for-
sale
invest
ments
Finance 1.8 1.8 1.8 2
lease
receiv
ables
Other 1.7 1.7 1.7
receiv
ables
Current
financ
ial
assets
Availab
le-for-
sale
invest
ments
Finance 1.1 1.1 1.1
lease
receiv
ables
Trade 81.2 81.2 81.2
and
other
receiv
ables
Derivat 0.0 0.0 0.0
ive
receiv
ables
Cash 19.1 19.1 19.1
and
cash
equiva
lents
-------------------------------------------------------------------------
Total 104.8 0.6 0.0 105.4 105.4
financ
ial
assets
Non-cur
rent
financ
ial
liabil
ities
Borrowi 60.8 60.8 60.8 2
ngs
Other 0.2 0.2 0.2
liabil
ities
Current
financ
ial
liabil
ities
Borrowi 54.8 54.8 54.8
ngs
Trade 75.1 75.1 75.1
and
other
payabl
es
Derivat 0.8 0.8 0.8 2
ive
liabil
ities
-------------------------------------------------------------------------
Total 190.9 0.8 191.7 191.7
financ
ial
liabil
ities
EUR Financi Loans Availabl Financial Derivat Carryin Fair Fair
millio al and e-for-sa liabiliti ives g values value
n assets other le es under amounts by hierar
31 and receiv financia measured hedge by balance chy
March liabili ables l assets at account balance sheet level
2015 ties amortised ing sheet item
at fair cost item
value
through
profit
or loss
--------------------------------------------------------------------------------
Non-cur
rent
financ
ial
assets
Availab 00.6 0.6 0.6 3
le-for-
sale
invest
ments
Finance 2.9 2.9 2.9 2
lease
receiv
ables
Other 2.2 2.2 2.2
receiv
ables
Current
financ
ial
assets
Availab
le-for-
sale
invest
ments
Trade 86.5 86.5 86.5
and
other
receiv
ables
Finance 1.2 1.2 1.2
lease
receiv
ables
Derivat 0.0 0.0
ive
receiv
ables
Cash 33.2 33.2 33.2
and
cash
equiva
lents
-------------------------------------------------------------------------
Total 0.0 126.1 0.6 126.7 126.6
financ
ial
assets
Non-cur
rent
financ
ial
liabil
ities
Borrowi 70.9 70.9 70.9 70.4 2
ngs
Other 0.0 0.0 0.0
liabil
ities
Current
financ
ial
liabil
ities
Borrowi 34.3 34.3
ngs
Trade 61.0 61.0
and
other
payabl
es
Derivat 0.6 0.6 2
ive
liabil
ities
-------------------------------------------------------------------------
Total 70.9 166.1 0.6 166.8 70.4
financ
ial
liabil
ities
CONTINGENT LIABILITIES
EUR million 3/2016 3/2015 12/2015
--------------------------------------------------------------------------------
Securities for own commitments
Mortgages on rights of tenancy 0.4 0.2 0.4
Company mortgages 1.1 0.5 1.1
Other securities 0.1 0.2 0.2
Bank guarantees required for environmental permits 8.0 8.4 8.6
Other securities are security deposits.
Operating lease liabilities
EUR million 3/2016 3/2015 12/2015
--------------------------------------------------------------------------------
Maturity not later than one year 7.4 3.6 6.3
Maturity later than one year and not later than five 16.5 3.8 13.1
years
Maturity later than five years 2.8 2.0 1.6
--------------------------------------------------------------------------------
Total 26.8 9.4 21.0
Liabilities associated with derivative agreements
Interest rate swaps
EUR million 3/2016 3/2015 12/2015
--------------------------------------------------------------------------------
Nominal values of interest rate swaps
Maturity not later than one year 33.8 8.5 34.1
Maturity later than one year and not later than five 4.5 38.4 4.5
years
Maturity later than five years 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total 38.4 46.8 38.6
Fair value -0.4 -0.6 -0.4
The interest rate swaps are used for the hedging of cash flow related to
floating rate loans, and hedge accounting under IAS 39 has been applied to
them. The hedges have been effective, and the changes in their fair values are
shown on the consolidated statement of comprehensive income for the period. The
fair values of the swap contracts are based on the market data on the interim
report date.
Commodity derivatives
EUR million 3/2016 3/2015 12/2015
--------------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 1.4 3.2 1.6
Maturity later than one year and not later than five 0.0 0.0 0.0
years
--------------------------------------------------------------------------------
Total 1.4 3.2 1.6
Fair value -0.3 -0.2 -0.6
Commodity derivative contracts were signed for the hedging of future diesel oil
purchases. IAS 39-compliant hedge accounting is applied to these contracts, and
the effective change in fair value is recognised in the hedging reserve within
equity.
Currency derivatives
EUR million 3/2016 3/2015 12/2015
-------------------------------------------------------------------------------
Nominal values of forward contracts and currency swaps
Maturity not later than one year - 6.6 -
Fair value - 0.0 -
Hedge accounting under IAS 39 has not been applied to forward contracts.
Changes in fair value have been recognised in financial income and expenses.
CALCULATION OF KEY FIGURES
Earnings per share:
profit attributable to equity holders of the parent company / adjusted average
basic number of shares
Diluted earnings per share:
profit attributable to equity holders of the parent company / adjusted average
diluted number of shares
Cash flows from operating activities/share:
cash flow from operating activities as in the statement of cash flows /
adjusted average
basic number of shares
EVA:
operating profit - cost calculated on invested capital (average of four
quarters)
WACC 2016: 6.56% and 2015: 6.51%
Equity per share:
profit attributable to equity holders of the parent company / adjusted basic
number of shares at end of period
Return on equity, % (ROE):
(profit for the period / equity (average)) x 100
Return on invested capital, % (ROI):
(profit before tax + financial expenses) / (total equity and liabilities -
non-interest-bearing liabilities (average)) x 100
Equity ratio, %:
equity / (total equity and liabilities - advances received) x 100
Gearing, %:
net interest-bearing liabilities / equity x 100
Net interest-bearing liabilities:
interest-bearing liabilities - liquid assets
Operating profit excluding non-recurring items:
operating profit +/- non-recurring items
Helsinki, 27 April 2016
LASSILA & TIKANOJA PLC
Board of Directors
Pekka Ojanpää
President and CEO
Additional information:
Pekka Ojanpää, President and CEO, tel. +358 10 636 2810
Timo Leinonen, CFO, tel. +358 400 793 073
Lassila & Tikanoja is a service company that is transforming consumer society
into an efficient
recycling society. In co-operation with our customers, we are reducing waste
volumes, extending
the useful lives of properties, recovering materials and decreasing the use of
raw materials and energy. We help our customers focus on their core business
and protect the environment. Together, we create well-being and jobs. With
operations in Finland, Sweden and Russia, L&T employs 8,000 persons. Net sales
in 2015 amounted to EUR 646.3 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lassila-tikanoja.fi
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