2015-04-29 07:00:02 CEST
2015-04-29 07:00:10 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January - 31 March 2015
Helsinki, Finland, 2015-04-29 07:00 CEST (GLOBE NEWSWIRE) --
Lassila & Tikanoja plc: Interim Report 1 January - 31 March 2015
Net sales for the first quarter EUR 157.3 million (EUR 159.4 million)
Operating profit excluding non-recurring items EUR 7.4 million (EUR 7.4 million)
Operating profit EUR 6.5 million (EUR 2.1 million)
Earnings per share EUR 0.14 (EUR -0.42).
Full-year net sales and operating profit excluding non-recurring items in 2015
are expected to remain at the 2014 level.
CEO PEKKA OJANPÄÄ:
“The economic recession kept the business environment challenging, which slowed
down the growth of business operations. However, net sales were supported by
strategically targeted acquisitions and a focus on sales and customer
relationships. In spite of the challenging circumstances, profitability
remained on the same level with the previous year. Profitability was improved
by the successful integration of acquired businesses and good cost control. In
line with our strategy, our focus in the prevailing economic situation is on
strengthening our market position and ensuring profitability and cash flow
through the development of our business operations and by business
acquisitions.”
GROUP NET SALES AND FINANCIAL PERFORMANCE
January-March
Lassila & Tikanoja's net sales for the first quarter decreased by 1.3% to EUR
157.3 million (EUR 159.4 million). Operating profit totalled EUR 6.5 million
(EUR 2.1 million). Operating profit excluding non-recurring items was EUR 7.4
million (EUR 7.4 million), representing 4.7% (4.7%) of net sales. Earnings per
share were EUR 0.14 (EUR -0.42).
In the first quarter, the company's net sales declined primarily due to demand
in Renewable Energy Sources and Industrial Services being lower than in the
comparison period. In Facility Services, net sales increased year-on-year
despite weakened demand for damage repair services. In Environmental Services,
net sales were on the same level with the comparison period.
In the comparison period, the company's reported operating profit included EUR
6.4 million in non-recurring costs relating to holdings in EcoStream Oy, which
filed for bankruptcy, and to outstanding receivables from the EcoStream Group
and L&T Recoil.
Operating profit excluding non-recurring items was on the same level with the
comparison period due to the improved profitability of Facility Services. In
the first quarter, the company recorded non-recurring restructuring costs of
EUR 0.9 million related to the loss-making damage repair services business. The
company will continue to adapt the damage repair services business to the
weakened market situation.
Financial summary
1-3/201 1-3/201 Change 1-12/20
5 4 % 14
--------------------------------------------------------------------------------
---------------------------
Net sales, EUR million 157.3 159.4 -1.3 639.7
--------------------------------------------- --------
Operating profit excluding non-recurring 7.4 7.4 -0.4 53.8
items, EUR million*
--------------------------------------------- --------
Operating margin excluding non-recurring 4.7 4.7 8.4
items, %
--------------------------------------------- --------
Operating profit, EUR million 6.5 2.1 202.6 48.5
--------------------------------------------- --------
Operating margin, % 4.1 1.3 7.6
--------------------------------------------- --------
Profit before tax, EUR million 7.0 -15.5 26.6
--------------------------------------------- --------
Earnings per share, EUR 0.14 -0.42 0.47
--------------------------------------------- --------
EVA, EUR million 1.7 -3.0 29.1
--------------------------------------------------------------------------------
* Breakdown is presented below the division reviews.
NET SALES AND OPERATING PROFIT BY DIVISION
Environmental Services
The division's net sales for the first quarter were unchanged from the previous
year at EUR 60.9 million (EUR 60.9 million). Operating profit and operating
profit excluding non-recurring items were EUR 6.5 million (EUR 6.6 million).
Due to the challenging market situation, the demand for solid recovered fuel
(SRF) declined year-on-year, which affected the entire division's net sales. In
addition, the net sales of waste management services, recycling services and
environmental products declined due to lower demand in Russia and fluctuations
in the rouble exchange rate. Nevertheless, net sales remained at the previous
year's level due to business acquisitions made by the Group.
The division's profitability remained on the same level with the previous year
thanks to a high level of operational efficiency.
Industrial Services
The division's net sales for the first quarter were down by 7.1% to EUR 14.8
million (EUR 16.0 million). Operating loss and operating loss excluding
non-recurring items were EUR 0.4 million (EUR 0.1 million).
In Industrial Services, demand in the first quarter is typically low due to
seasonality. With the exception of process cleaning, the division's services
had lower net sales in the first quarter than in the comparison period. The
division's profitability declined particularly due to lower volume in hazardous
waste management.
Facility Services
The division's net sales for the first quarter increased by 2.3% to EUR 70.7
million (EUR 69.0 million). Operating profit totalled EUR 0.3 million (EUR 0.6
million). Operating profit excluding non-recurring items was EUR 1.2 million
(EUR 0.6 million).
The demand for property maintenance services improved year-on-year, and the
maintenance of technical systems saw continued strong growth due to factors
such as acquisitions carried out early in the year. The demand for damage
repair services continued to decline. The company has closed down unprofitable
business locations in the damage repair services business, which affected the
entire division's net sales and operating profit.
Business operations and profitability developed favourably in property
maintenance and the maintenance of technical systems, as well as in Swedish
cleaning operations. The result of Finnish cleaning operations was weighed down
by several large-scale customer start-ups.
The profitability of damage repair services weakened. The company will continue
to adapt the loss-making damage repair services business to the prevailing
market situation. In the first quarter, the company recorded non-recurring
restructuring costs of EUR 0.9 million related to the damage repair services
business, of which EUR 0.3 million are actual costs incurred in the first
quarter and EUR 0.6 million are provisions for future adjustment measures.
Renewable Energy Sources
First quarter net sales of Renewable Energy Sources (L&T Biowatti) were down by
18.3% to EUR 12.9 million (EUR 15.8 million). Operating profit and operating
profit excluding non-recurring items were EUR 0.7 million (EUR 0.8 million).
The division's net sales declined mainly due to the short heating season and
the challenging market situation for biofuels.
Profitability remained nearly at the previous year's level due to the
implemented efficiency improvement measures.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 1-3/2015 1-3/2014 1-12/2014
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Operating profit 6.5 2.1 48.5
Non-recurring items:
Gain on sale of L&T Biowatti Oy equipment -0.4
L&T Recoil Oy 6.4 6.4
Divestment of Latvian business operations -1.1 -1.1
Restructuring costs 0.9 2.0
Other non-recurring items -1.5
-----------------------------------------------------------------------------
Total non-recurring items 0.9 5.3 5.3
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Operating profit excluding non-recurring items 7.4 7.4 53.8
FINANCING
Cash flows from operating activities amounted to EUR 18.6 million (EUR 13.7
million). A total of EUR 3.3 million in working capital was released (EUR 0.9
million committed).
At the end of the period, interest-bearing liabilities amounted to EUR 105.2
million (EUR 112.1 million).
Net interest-bearing liabilities amounted to EUR 71.9 million (EUR 83.3
million), showing an increase of EUR 19.9 million from the beginning of the
year and a decrease of EUR 11.4 million year-on-year.
Net financial expenses in the first quarter were positive at EUR 0.5 million
(EUR -17.6 million), including EUR 0.9 million in exchange rate gains resulting
from changes in the exchange rate of the Russian rouble. Net financial expenses
were 0.3% (-11.0%) of net sales. The amount of net financial expenses in the
comparison period was primarily due to the EUR 16.7 million payment made under
the L&T Recoil Oy guarantee commitment.
The average interest rate on long-term loans (with interest-rate hedging) was
1.6% (1.7%). Long-term loans totalling EUR 23.1 million will mature during the
rest of the year.
The equity ratio was 41.9% (40.1%) and the gearing rate was 39.2 (47.4). Liquid
assets at the end of the period amounted to EUR 33.2 million (EUR 28.7
million).
Of the EUR 100 million commercial paper programme, EUR 10.0 million (EUR 30.0
million) was in use at the end of the period.
The company issued a EUR 30 million senior unsecured bond in 2014. The bond
matures on 15 September 2019 and carries a fixed annual interest rate of 2.125
per cent.
The Group has granted internal loans to its subsidiaries in Russia totalling
RUB 270 million (EUR 3.7 million), some of which are hedged against
fluctuations in the rouble exchange rate.
DISTRIBUTION OF ASSETS
The Annual General Meeting held on 18 March 2015 resolved that a dividend of
EUR 0.75 per share be paid on the basis of the balance sheet that was adopted
for the financial year 2014. The dividend, totalling EUR 29.0 million, was paid
to shareholders on 27 March 2015.
CAPITAL EXPENDITURE
In the first quarter of 2015, gross capital expenditure totalled EUR 9.5
million (EUR 9.0 million), consisting mainly of machine and equipment purchases
and small targeted acquisitions.
PERSONNEL
In January-March, the average number of employees converted into full-time
equivalents was 6,762 (7,683). At the end of the period, Lassila & Tikanoja had
7,842 (7,836) full-time and part-time employees. Of these, 7,041 (7,040) worked
in Finland and 801 (796) in other countries.
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading on Nasdaq Helsinki in January-March 2015, excluding the
shares held by the company in Lassila & Tikanoja plc, was 3,471,056 shares,
which is 9.0% (5.3%) of the average number of outstanding shares. The value of
trading was EUR 59.3 million (EUR 29.9 million). The highest share price was
EUR 18.26 and the lowest EUR 14.54. The closing price was EUR 17.28. At the end
of the period, the market capitalisation excluding the shares held by the
company was EUR 667.3 million (EUR 561.2 million).
Own shares
At the end of the period, the company held 184,315 of its own shares,
representing 0.5% 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 38,614,559. The average number of shares excluding the
shares held by the company was 38,610,104.
Shareholders
At the end of the period, the company had 9,958 (9,326) shareholders.
Nominee-registered holdings accounted for 19.3% (21.3%) of the total number of
shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 18 March 2015 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 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 18 March 2015, adopted the
financial statements and consolidated financial statements for 2014 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 0.75 per share,
totalling EUR 29.0 million, be paid on the basis of the balance sheet adopted
for the financial year 2014. It was decided that the dividend be paid on 27
March 2015.
The Annual General Meeting confirmed the number of members of the Board of
Directors as five. Heikki Bergholm, Eero Hautaniemi, Laura Lares, Sakari
Lassila and Miikka Maijala were re-elected 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 18 March 2015.
BOARD OF DIRECTORS
The members of Lassila & Tikanoja plc's Board of Directors are Heikki Bergholm,
Eero Hautaniemi, 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 Laura Lares as
members of the audit committee. Heikki Bergholm was elected as the Chairman of
the Remuneration Committee and Miikka Maijala as a member of the committee.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 4, CHAPTER 6 OF THE
SECURITIES MARKET ACT
On 20 January 2015, the company announced that, according to the preliminary
financial statements figures for 2014, the company's net sales are estimated to
be approximately EUR 639 million (2013: EUR 668.2 million) and the operating
profit excluding non-recurring items is estimated to be EUR 53.8 million (2013:
EUR 51.8 million).
Previously, the company had estimated that the 2014 net sales were expected to
remain at the 2013 level or slightly below and operating profit excluding
non-recurring items would also remain at the 2013 level or slightly below.
EVENTS AFTER THE REVIEW PERIOD
The company's management is not aware of any events of material importance
after the balance sheet date that might have affected the preparation of the
interim report.
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.
Uncertainties related to government subsidies for renewable fuels and to the
continuity of such subsidies may affect demand for the services of Renewable
Energy Sources. In addition, low prices for fossil fuels may affect the demand
of the recovered and renewable fuels produced by the company.
More detailed information on L&T's risks and risk management is available in
the Annual Report for 2014, in the Report of the Board of Directors and in the
consolidated financial statements.
OUTLOOK FOR THE REST OF THE YEAR
Full-year net sales and operating profit excluding non-recurring items in 2015
are expected to remain at the 2014 level.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY - 31 MARCH 2015
CONSOLIDATED INCOME STATEMENT
EUR million 1-3/ 1-3/ 1-12/
2015 2014 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 157.3 159.4 639.7
Cost of sales -143.1 -145.0 -561.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Gross profit 14.2 14.4 78.1
Other operating income 0.4 1.7 7.0
Sales and marketing expenses -3.3 -3.8 -14.2
Administrative expenses -3.3 -3.5 -12.7
Other operating expenses -1.5 -6.7 -9.7
Operating profit 6.5 2.1 48.5
--------------------------------------------------------------------------------
Financial income 1.0 0.1 0.4
Financial expenses -0.5 -17.7 -22.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before tax 7.0 -15.5 26.6
Income taxes -1.5 -0.9 -8.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the period 5.6 -16.3 18.1
Attributable to:
Equity holders of the company 5.6 -16.3 18.1
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 -0.42 0.47
Diluted earnings per share, EUR 0.14 -0.42 0.47
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million 1-3/ 1-3/ 1-12/
2015 2014 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the period 5.6 -16.3 18.1
Items not to be recognised through profit or loss
Items arising from re-measurement of defined benefit plans - - -0.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Items not to be recognised through profit or loss, total - - -0.1
Items potentially to be recognised through profit or loss
Hedging reserve, change in fair value 0.2 -0.3 -0.6
Currency translation differences 0.5 -0.4 -2.1
Currency translation differences recognised in profit or 0.0 0.3 0.3
loss
Currency translation differences, non-controlling interest 0.0 0.0 -0.1
-------------------
Items potentially to be recognised through profit or loss, 0.7 -0.4 -2.4
total
--------------------------------------------------------------------------------
Total comprehensive income, after tax 6.3 -16.7 15.6
Attributable to:
Equity holders of the company 6.3 -16.7 15.7
Non-controlling interest 0.0 0.0 -0.1
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 3/2015 3/2014 12/2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 110.9 108.5 109.9
Customer contracts arising from acquisitions 5.7 5.0 5.3
Agreements on prohibition of competition 0.1 0.1 0.1
Other intangible assets arising from business 0.7 0.0 0.7
acquisitions
Other intangible assets 10.5 8.0 9.7
--------------------------------------------------------------------------------
127.9 121.6 125.7
Property, plant and equipment
Land 5.1 3.4 3.3
Buildings and constructions 43.1 48.1 44.3
Machinery and equipment 109.7 109.9 112.2
Other 0.1 0.1 0.1
Prepayments and construction in progress 2.2 2.4 2.2
--------------------------------------------------------------------------------
160.2 164.0 162.1
Other non-current assets
Available-for-sale investments 0.6 0.6 0.6
Finance lease receivables 2.9 3.7 3.2
Deferred tax assets 2.8 2.9 2.7
Other receivables 2.2 2.4 2.3
--------------------------------------------------------------------------------
8.4 9.5 8.7
Total non-current assets 296.5 295.2 296.5
Current assets
Inventories 23.7 26.8 22.6
Trade and other receivables 93.8 96.4 94.7
Derivative receivables 0.0 0.0 0.1
Prepayments 3.2 3.6 0.5
Current available-for-sale financial assets 0.0 0.0 10.0
Cash and cash equivalents 33.2 28.7 34.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total current assets 154.1 155.5 161.8
Total assets 450.5 450.7 458.3
--------------------------------------------------------------------------------
EUR million 3/2015 3/2014 12/2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the parent
company
Share capital 19.4 19.4 19.4
Other reserves -3.1 -1.9 -3.9
Invested unrestricted equity reserve 0.5 0.3 0.3
Retained earnings 161.0 174.1 172.2
Profit for the period 5.6 -16.3 18.1
--------------------------------------------------------------------------------
183.4 175.6 206.2
Non-controlling interest 0.2 0.2 0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity 183.6 175.8 206.3
Liabilities
Non-current liabilities
Deferred tax liability 24.4 25.1 24.7
Retirement benefit obligations 1.0 0.8 1.0
Provisions 4.2 6.1 4.2
Interest-bearing liabilities 70.9 65.0 71.2
Other liabilities 0.3 0.5 0.3
--------------------------------------------------------------------------------
100.7 97.6 101.4
Current liabilities
Interest-bearing liabilities 34.3 47.0 24.8
Trade and other payables 126.2 121.6 120.4
Derivative liabilities 0.9 0.8 1.4
Tax liabilities 1.3 4.7 0.7
Provisions 3.5 3.2 3.3
--------------------------------------------------------------------------------
166.2 177.3 150.7
Total liabilities 266.9 274.9 252.0
Total equity and liabilities 450.5 450.7 458.3
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 1-3/20 1-3/20 1-12/20
15 14 14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 5.6 -16.3 18.1
Adjustments
Income taxes 1.5 0.9 8.4
Deprecation and impairment 10.1 10.2 40.2
Financial income and expenses -0.5 17.6 21.9
Gain on sale of shares 0.0 -1.5 -1.5
Other 0.5 6.5 1.9
--------------------------------------------------------------------------------
Net cash generated from operating activities before 17.1 17.4 89.1
change in working capital
Change in working capital
Change in trade and other receivables -1.3 -0.7 -1.4
Change in inventories -1.2 -0.7 3.6
Change in trade and other payables 5.8 0.5 0.0
--------------------------------------------------------------------------------
Change in working capital 3.3 -0.9 2.2
Interest paid -0.5 -0.9 -3.0
Interest received 0.1 0.1 0.4
Income taxes -1.4 -2.0 -9.1
--------------------------------------------------------------------------------
Net cash from operating activities 18.6 13.7 79.6
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of cash -1.8 -2.0 -9.8
acquired
Proceeds from sale of subsidiaries and businesses, net 0.0 11.7 13.5
of sold cash
Purchases of property, plant and equipment and -7.8 -5.9 -34.1
intangible assets Proceeds from sale of property, plant and equipment and 0.0 0.0 0.4
intangible assets
Purchases of available-for-sale investments 0.0 - -0.2
Change in other non-current receivables 0.3 -0.6 0.3
Dividends received 0.0 0.0 0,0
Net cash used in investing activities -9.3 3.2 -29.8
--------------------------------------------------------------------------------
Cash flows from financing activities
Change in short-term borrowings 10.0 -32.2
Proceeds from long-term borrowings 0.0 -5.0 29.9
Repayments of long-term borrowings -0.8 -24.8
Dividends paid and other asset distribution -29.0 -5.6 -19.4
Acquisition of own shares -0.4 -19.4 -1.9
L&T Recoil Oy guarantee commitment 0.0 -16.7 -16.7
Other financing items 0.0 - 0.9
Net cash generated from financing activities -20.1 -46.6 -64.2
--------------------------------------------------------------------------------
Net change in liquid assets -10.9 -29.7 -14.4
Liquid assets at beginning of period 44.0 58.5 58.5
Effect of changes in foreign exchange rates 0.1 -0.1 -0.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liquid assets at end of period 33.2 28.7 44.0
Liquid assets
EUR million 1-3/2015 1-3/2014 1-12/2014
------------------------------------------------------------------
------------------------------------------------------------------
Cash and cash equivalents 33.2 28.7 34.0
Available-for-sale financial assets 0.0 0.0 10.0
------------------------------------------------------------------
Total 33.2 28.7 44.0
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 -1.2 0.0 -0.3 0.3 193.1 211.2 0.2 211.5
on 1
Jan.
2014
Total
compre
hensive
income
Profit -16.3 -16.3 0.0 -16.3
for
the
period
Items 0.0 0.0
arisin
g from
re-mea
suremen
t of
define
d
benefi
t plans
Hedging -0.3 -0.3 -0.3
reserv
e,
change
in
fair
value
Availab 0.0 0.0
le-for-
sale
financ
ial
assets
Currenc 0.0 0.0 0.0
y
transl
ation
differ
ences
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 0.0 0.0 0.0 -0.3 0.0 -16.3 -16.7 0.0 -16.7
compre
hensive
income
Transac
tions
with
shareh
olders
Share-b -0.1 -0.1 -0.1
ased
benefi
ts
Dividen -19.4 -19.4 -19.4
ds paid
Dividen
ds
return
ed
Capital
repaym
ent
Transac 0.0 0.0 0.0 0.0 0.0 -19.5 -19.5 -19.5
tions
with
shareh
olders,
total
--------------------------------------------------------------------------------
Other 0.5 0.5 0.5
change
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity 19.4 -1.3 0.0 -0.6 0.3 157.8 175.6 0.2 175.8
on 31
Mar.
2014
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 0.0 0.5 0.0 0.3 0.0 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
Acquisi -0.4 -0.4 -0.4
tion of
own
shares
Transac 0.0 0.0 0.0 0.0 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
KEY FIGURES
1-3/ 1-3/ 1-12/
2015 2014 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.14 -0.42 0.47
Diluted earnings per share, EUR 0.14 -0.42 0.47
Cash flows from operating activities per share, EUR 0.48 0.35 2.06
EVA, EUR million 1.7 -3.0 29.1
Gross capital expenditure, EUR million 9.5 9.0 44.7
Depreciation, amortisation and impairment, EUR million 10.1 10.2 40.2
Equity per share, EUR 4.75 4.53 5.34
Return on equity (ROE), % 11.4 -33.8 8.7
Return on invested capital, ROI, % 10.2 2.9 15.4
Equity ratio, % 41.9 40.1 46.3
Gearing, % 39.2 47.4 25.2
Net interest-bearing liabilities, EUR million 71.9 83.3 52.0
Average number of employees in full-time equivalents 6,762 7,683 7,257
Total number of full-time and part-time employees at end 7,842 7,836 7,830
of period
Number of outstanding shares adjusted for issues, 1,000
shares
average during the period 38,610 38,718 38,729
at end of period 38,615 38,747 38,702
average during the period, diluted 38,622 38,724 38,740
ACCOUNTING POLICIES
This financial statements release is in compliance with the IAS 34 (Interim
Financial Reporting) standard.
The financial statements release has been prepared with application of the IFRS
standards and interpretations in effect on 31 December 2014.
More detailed information on accounting policies is presented in the
consolidated financial statements of Lassila & Tikanoja plc dated 31.12.2014.
The information presented in the interim report has not been audited.
SEGMENT INFORMATION
Net sales
1-3/ 1-3/
2015 2014
------- ---------------
EUR million Extern Inter-di Total Extern Inter-div Total Total net
al vision al ision sales, change
%
--------------------------------------------------------------------------------
------- ---------------
Environmental 60.1 0.8 60.9 60.2 0.8 60.9 0.0
Services
------- -------
Industrial 14.4 0.4 14.8 15.5 0.5 16.0 -7.1
Services
------- -------
Facility 69.9 0.8 70.7 68.0 1.0 69.0 2.3
Services
------- -------
Renewable 12.9 0.1 12.9 15.8 0.1 15.8 -18.3
Energy
Sources
------- -------
Eliminations -2.1 -2.1 -2.4 -2.4
--------------------------------------------------------------------------------
-------
Total 157.3 0.0 157.3 159.4 0.0 159.4 -1.3
------- ---------------
1-12/
2014
EUR million External Inter-division Total
---------------------------------------------------------
Environmental Services 250.9 3.7 254.5
Industrial Services 74.3 3.5 77.8
Facility Services 270.6 4.2 274.7
Renewable Energy Sources 44.0 0.2 44.2
Eliminations -11.6 -11.6
---------------------------------------------------------
Total 639.7 0.0 639.7
Operating profit
EUR million 1-3/2015 % 1-3/2014 % 1-12/2014 %
-------------------------------------------------------------------------------
Environmental Services 6.5 10.7 6.6 11.0 37.3 14.7
Industrial Services -0.4 -2.5 -0.1 -0.9 6.5 8.4
Facility Services 0.3 0.5 0.6 0.8 10.6 3.9
Renewable Energy Sources 0.7 5.5 0.8 5.2 1.6 3.7
Group administration and other -0.7 -5.7 -7.6
-------------------------------------------------------------------------------
Total 6.5 4.1 2.1 1.3 48.5 7.6
OTHER SEGMENT INFORMATION
EUR million 1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------------
Assets
Environmental Services 213.8 207.3 212.4
Industrial Services 68.9 72.9 72.6
Facility Services 103.1 99.0 98.8
Renewable Energy Sources 25.3 30.4 24.6
Group administration and other 1.3 1.3 1.1
Unallocated assets 38.1 39.8 48.9
-------------------------------------------------------------
L&T total 450.5 450.7 458.3
Liabilities
Environmental Services 50.2 50.2 50.5
Industrial Services 20.2 20.1 21.9
Facility Services 52.5 50.1 48.3
Renewable Energy Sources 6.9 8.1 6.2
Group administration and other 4.8 3.4 1.9
Unallocated liabilities 132.4 143.0 123.2
-------------------------------------------------------------
L&T total 266.9 274.9 252.0
EUR million 1-3/2015 1-3/2014 1-12/2014
-------------------------------------------------------------
Capital expenditure
Environmental Services 4.7 6.1 26.6
Industrial Services 0.9 1.0 6.6
Facility Services 3.9 1.8 11.3
Renewable Energy Sources 0.0 0.1 0.2
Group administration and other 0.0 0.0 0.0
-------------------------------------------------------------
L&T total 9.5 9.0 44.7
Depreciation and amortisation
Environmental Services 5.0 5.2 20.1
Industrial Services 1.8 1.6 6.9
Facility Services 3.3 3.3 13.0
Renewable Energy Sources 0.1 0.1 0.2
Group administration and other 0.0 0.0 0.0
-------------------------------------------------------------
L&T total 10.1 10.2 40.2
Impairment
Environmental Services
Industrial Services
Facility Services
Renewable Energy Sources
Group administration and other
-------------------------------------------------------------
-------------------------------------------------------------
L&T total 0.0 0.0 0.0
INCOME STATEMENT BY QUARTER
EUR million 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2015 2014 2014 2014 2014
----------------------------------------------------------------------
Net sales
Environmental Services 60.9 64.8 64.6 64.2 60.9
Industrial Services 14.8 20.3 21.8 19.7 16.0
Facility Services 70.7 68.8 68.6 68.3 69.0
Renewable Energy Sources 12.9 12.0 6.1 10.3 15.8
Group administration and other
Interdivision net sales -2.1 -3.5 -3.1 -2.7 -2.4
----------------------------------------------------------------------
L&T total 157.3 162.3 158.1 159.8 159.4
Operating profit
Environmental Services 6.5 10.8 10.7 9.3 6.6
Industrial Services -0.4 1.6 3.1 1.9 -0.1
Facility Services 0.3 1.7 6.3 2.1 0.6
Renewable Energy Sources 0.7 1.0 -0.5 0.3 0.8
Group administration and other -0.7 -1.2 -0.1 -0.6 -5.7
----------------------------------------------------------------------
L&T total 6.5 14.0 19.4 12.9 2.1
Operating margin
Environmental Services 10.7 16.6 16.5 14.4 10.9
Industrial Services -2.5 8.0 14.2 9.8 -0.9
Facility Services 0.5 2.5 9.1 3.0 0.8
Renewable Energy Sources 5.5 8.7 -8.1 2.5 5.2
----------------------------------------------------------------------
-----------------------------------
L&T total 4.1 8.6 12.3 8.1 1.3
Financial income and expenses, net 0.5 -3.4 -0.9 0.0 -17.6
----------------------------------------------------------------------
Profit before tax 7.0 10.6 18.5 12.9 -15.5
BUSINESS ACQUISITIONS, COMBINED
EUR million Fair value
-------------------------------------------------------------
Intangible assets 1.0
Property, plant and equipment 0.2
Investments 0.0
Receivables 0.1
Cash and cash equivalents 0.8
-------------------------------------------------------------
Total assets 2.1
Interest-bearing liabilities -
Other liabilities 0.3
Deferred tax liabilities 0.1
-------------------------------------------------------------
Total liabilities 0.4
Net assets acquired 1.7
Total consideration 2.6
Goodwill 0.9
Effect on cash flow
Consideration paid in cash -2.6
Cash and cash equivalents of the acquired company 0.8
-------------------------------------------------------------
Cash flow from investing activities -1.8
Facility Services acquired the share capital of the following companies: 2
March 2015 NN-Kiinteistötyö Oy. In addition, Facility Services acquired the
business operations of the following companies: 2 February 2015 Jyväs-Jää Oy.
The accounting policy concerning business combinations is presented under Note
2 of the financial statements and under
accounting policies.
CHANGES IN INTANGIBLE ASSETS
EUR million 1-3/2015 1-3/2014 1-12/2014
---------------------------------------------------------------------
---------------------------------------------------------------------
Carrying amount at beginning of period 125.7 126.3 126.3
Business acquisitions 1.9 2.0 6.9
Other capital expenditure 1.4 0.7 4.5
Disposals 0.0 -5.6 -5.6
Deprecation and impairment -1.2 -1.6 -5.6
Transfers between items 0.0 -0.1
Exchange differences 0.1 -0.2 -0.7
---------------------------------------------------------------------
Carrying amount at end of period 127.9 121.6 125.7
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 1-3/2015 1-3/2014 1-12/2014
---------------------------------------------------------------------
---------------------------------------------------------------------
Carrying amount at beginning of period 162.1 171.5 171.5
Business acquisitions 0.2 0.5 3.4
Other capital expenditure 6.0 5.8 29.9
Disposals -0.3 -4.9 -6.0
Deprecation and impairment -8.9 -8.6 -34.7
Transfers between items 0.0 0.1
Exchange differences 1.0 -0.4 -2.2
---------------------------------------------------------------------
Carrying amount at end of period 160.2 164.0 162.1
CAPITAL COMMITMENTS
EUR million 1-3/2015 1-3/2014 1-12/2014
------------------------------------------------------------
------------------------------------------------------------
Intangible assets 0.1
Property, plant and equipment 7.0 7.6 3.4
------------------------------------------------------------
Total 7.1 7.6 3.4
FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
EUR Financia Loans Availabl Financi Deriva Carrying Fair Fair
millio l assets and e-for-sa al tives amounts values value
n, 31 and other le liabili under by by hierar
March liabilit receiva financia ties hedge balance balance chy
2015 ies bles l assets measure accoun sheet sheet level
at fair d at ting item item
value amortis
through ed cost
profit
or loss
-------------------------------------------------------------------------
-------
Non-cur
rent
financ
ial
assets
Availab 0.6 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
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 0.0 0.0 126.7 126.6
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
EUR Financia Loans Availabl Financi Deriva Carrying Fair Fair
millio l assets and e-for-sa al tives amounts values value
n, 31 and other le liabili under by by hierar
March liabilit receiva financia ties hedge balance balance chy
2014 ies bles l assets measure accoun sheet sheet level
at fair d at ting item item
value amortis
through ed cost
profit
or loss
-------------------------------------------------------------------------
-------
Non-cur
rent
financ
ial
assets
Availab 0.6 0.6 0.6 3
le-for-
sale
invest
ments
Finance 3.7 3.7 3.8 2
lease
receiv
ables
Other 2.1 2.1 2.1
receiv
ables
Current
financ
ial
assets
Trade 85.1 85.1 85.1
and
other
receiv
ables
Finance 1.5 1.5 1.5
lease
receiv
ables
Derivat
ive
receiv
ables
Cash 28.7 28.7 28.7
and
cash
equiva
lents
-------------------------------------------------------------------------
Total 121.1 0.6 121.7 121.8
financ
ial
assets
Non-cur
rent
financ
ial
liabil
ities
Borrowi 65.0 65.0 65.1 2
ngs
Other 0.2 0.2 0.2
liabil
ities
Current
financ
ial
liabil
ities
Borrowi 47.0 47.0
ngs
Trade 57.4 57.4
and
other
payabl
es
Derivat 0.8 0.8 0.8 2
ive
liabil
ities
-------------------------------------------------------------------------
Total 169.7 0.8 170.5 66.1
financ
ial
liabil
ities
CONTINGENT LIABILITIES
Securities for own commitments
EUR million 3/2015 3/2014 12/2014
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Mortgages on rights of tenancy 0.2 0.2 0.2
Company mortgages 0.5 1.0 0.5
Other securities 0.2 0.2 0.2
Bank guarantees required for environmental permits 8.4 9.5 8.4
Other securities are security deposits.
Operating lease liabilities
EUR million 3/2015 3/2014 12/2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Maturity not later than one year 3.6 4.6 2.9
Maturity later than one year and not later than five 3.8 3.9 2.8
years
Maturity later than five years 2.0 2.1 2.0
--------------------------------------------------------------------------------
Total 9.4 10.6 7.7
Liabilities associated with derivative agreements
Cross currency interest rate swaps
EUR million 3/2015 3/2014 12/201
4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Maturity of cross currency interest rate swaps under
hedge accounting
Maturity not later than one year 7.2
Maturity later than one year and not later than five 8.7
years
--------------------------------------------------------------------------------
Total 0.0 15.9 0.0
Fair value -0.1
The contracts are used for the hedging of foreign currency loans. The changes
in their fair values are shown on the consolidated statement of comprehensive
income.
Interest rate swaps
EUR million 3/2015 3/2014 12/2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Nominal values of interest rate swaps
Maturity not later than one year 8.5 9.0 6.4
Maturity later than one year and not later than five 38.4 45.9 14.2
years
Maturity later than five years 0.0 0.9 0.0
--------------------------------------------------------------------------------
Total 46.8 55.9 20.5
Fair value -0.6 -0.4 -0.6
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 balance
sheet date.
Commodity derivatives
Metric tonnes 3/2015 3/2014 12/2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 3.2 7.4 8.3
Maturity later than one year and not later than five 0.0 0.8 0.0
years
--------------------------------------------------------------------------------
Total 3.2 8.3 8.3
Fair value, EUR million -0.2 -0.3 -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. The fair values of commodity derivatives are based on market prices on
the balance sheet date.
Currency derivatives
EUR million 3/2015 3/2014 12/2014
-------------------------------------------------------------------------------
Nominal values of forward contracts and currency swaps
Maturity not later than one year 6.6 0.0 10.9
Fair value 0.0 0.0 -0.1
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 2014: 6.58% 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, 29 April 2015
LASSILA & TIKANOJA PLC
Board of Directors
Pekka Ojanpää
President and CEO
Additional information:
Pekka Ojanpää, President and CEO, tel. 010 636 2810
Timo Leinonen, CFO, tel. 0400 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 to 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 2014 amounted to EUR 639.7 million L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major mediawww.lassila-tikanoja.com
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