2015-02-04 07:00:00 CET
2015-02-04 07:00:04 CET
REGULATED INFORMATION
Lassila & Tikanoja - Financial Statement Release
Lassila & Tikanoja plc: Financial Statements 1 January - 31 December 2014
Helsinki, Finland, 2015-02-04 07:00 CET (GLOBE NEWSWIRE) --
Lassila & Tikanoja plc Financial statements release 4
February 2015 8.00 am
Lassila & Tikanoja plc: Financial Statements 1 January - 31 December 2014
Net sales for the final quarter EUR 162.3 million (EUR 169.7 million);
operating profit EUR 14.0 million (operating loss EUR 1.6 million); operating
profit excluding non-recurring items EUR 13.2 million (EUR 11.5 million);
earnings per share EUR 0.21 (EUR -0.03)
Full-year net sales EUR 639.7 million (EUR 668.2 million); operating profit EUR
48.5 million (EUR 33.2 million); operating profit excluding non-recurring items
EUR 53.8 million (EUR 51.8 million); earnings per share EUR 0.47 (EUR 0.57)
Full-year net sales and operating profit excluding non-recurring items in 2015
are expected to remain at the 2014 level.
The Board of Directors proposes a dividend of EUR 0.75 per share.
CEO PEKKA OJANPÄÄ:
“The economic recession kept the business environment challenging throughout
the year. In spite of that, our profitability continued to improve. There are
several factors behind this positive development. In Environmental Services,
our market position was improved by strong sales work and targeted business
acquisitions. In Industrial Services, we achieved growth and improved
profitability in spite of the difficult market situation by improving the
efficiency of our operations. In Facility Services, the structural changes and
improvements in operational efficiency we have already implemented began to be
reflected in the result, but the market situation remained challenging. 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
October-December
Lassila & Tikanoja's net sales for the final quarter decreased by 4.4%
year-on-year, to EUR 162.3 million (EUR 169.7 million). Operating profit was
EUR 14.0 million (operating loss EUR 1.6 million). Operating profit excluding
non-recurring items was EUR 13.2 million (EUR 11.5 million), representing 8.1%
(6.8%) of net sales. Earnings per share were EUR 0.21 (EUR -0.03).
In the final quarter, comparable net sales grew in the Environmental Services
division, but decreased in all other divisions.
The net sales of the comparison period includes EUR 4.6 million in net sales
from the Latvian business operations that were divested on 13 March 2014, as
well as EUR 0.5 million of operating profit, most of which is allocated to the
Environmental Services division.
The growth in operating profit excluding non-recurring items was mainly
attributable to the improved profitability of Environmental Services and
Facility Services.
The operating profit for the final quarter was affected by non-recurring
capital gains on the divestment of the FinBin business operations and the sale
of equipment in the Renewable Energy Sources division, totalling EUR 2.2
million, and non-recurring restructuring costs of EUR 1.4 million.
Year 2014
Lassila & Tikanoja's net sales for the year 2014 amounted to EUR 639.7 million
(EUR 668.2 million); a decrease of 4.3%. Operating profit was EUR 48.5 million
(EUR 33.2 million). Operating profit excluding non-recurring items was EUR 53.8
million (EUR 51.8 million), representing 8.4% (7.8%) of net sales. Earnings per
share were EUR 0.47 (EUR 0.57).
Comparable net sales grew in the Environmental Services and Industrial Services
divisions, but decreased in the Facility Services and Renewable Energy Sources
divisions.
The 2014 figures include EUR 2.9 million (EUR 16.6 million) in net sales from
the Latvian business operations that were divested on 13 March 2014 as well as
EUR 0.4 million (EUR 1.3 million) of operating profit, most of which is
allocated to the Environmental Services division.
The operating profit for 2014 includes non-recurring items at a net amount of
EUR 5.3 million. Of these, EUR 6.4 million were non-recurring costs relating to
holdings in EcoStream Oy, which has filed for bankruptcy, and to outstanding
receivables from the EcoStream Group and L&T Recoil. In addition, a
non-recurring capital gain of EUR 1.1 million was recognised on the Latvian
business operations and a write-down of EUR 0.2 million on inventories of
discontinued business operations under Renewable Energy Sources. The operating
profit was also affected by non-recurring capital gains on the divestment of
the FinBin business operations and the sale of equipment in the Renewable
Energy Sources division, totalling EUR 2.2 million, and non-recurring
restructuring costs of EUR 1.4 million.
Business acquisitions made during 2014 had an effect of EUR 3.1 million on the
company's net sales and EUR 0.6 million on operating profit.
Furthermore, the Group's net profit was affected by the EUR 16.7 million
payment made under the L&T Recoil guarantee commitment and recognised in
financial expenses. After the entries related to EcoStream Group's insolvency,
the company has no liabilities related to EcoStream Oy and L&T Recoil.
Financial summary
10-12/ 10-12/ Change 1-12/ 1-12/ Change
2014 2013 % 2014 2013 %
-------------------------------------------------------------------------------- ------------------------------------------
Net sales, EUR million 162.3 169.7 -4.4 639.7 668.2 -4.3
------------------------------- -------
Operating profit excluding 13.2 11.5 15.1 53.8 51.8 3.8
non-recurring items, EUR
million*
------------------------------- -------
Operating margin excluding 8.1 6.8 8.4 7.8
non-recurring items, %
------------------------------- -------
Operating profit, EUR million 14.0 -1.6 48.5 33.2 46.1
------------------------------- -------
Operating margin, % 8.6 -1.0 7.6 5.0
------------------------------- -------
Profit before tax, EUR million 10.6 -2.3 26.6 30.3 -12.3
------------------------------- -------
Earnings per share, EUR 0.21 -0.03 0.47 0.57 -18.3
------------------------------- -------
Dividend/share, EUR 0.75** 0.50 50.0
------------------------------- -------
EVA, EUR million 9.5 -4.9 29.1 12.4 134.7
--------------------------------------------------------------------------------
* Breakdown is presented below the division reviews.
** Proposal by the Board of Directors
NET SALES AND OPERATING PROFIT BY DIVISION
Environmental Services
October-December
The division's net sales for the final quarter decreased by 1.3% to EUR 64.8
million (EUR 65.7 million). Operating profit totalled EUR 10.8 million (EUR 2.9
million) and operating profit excluding non-recurring items was EUR 9.0 million
(EUR 7.9 million).
Comparable net sales increased by 1.2% due to sales work which strengthened
market position. Demand continued to grow in waste management.
The net sales of the comparison period includes EUR 3.3 million in net sales
from the Latvian business operations that were divested on 13 March 2014.
The division's profitability improved due to factors including synergies
achieved through business acquisitions and continuous improvements in
operational efficiency.
Year 2014
The Environmental Services division's net sales for 2014 amounted to EUR 254.5
million (EUR 257.9 million), showing a decrease of 1.3%. Operating profit
totalled EUR 37.3 million (EUR 30.1 million) and operating profit excluding
non-recurring items was EUR 35.9 million (EUR 35.1 million).
Demand in the recycling business was weakened particularly by the decrease in
the volume of recyclable materials due to the slowdown in construction and
commerce. Demand grew particularly in waste management and Russian operations.
Comparable net sales increased by 1.5%. The net sales of 2014 includes EUR 2.1
million (EUR 12.2 million) from the Latvian business operations that were
divested on 13 March 2014.
The profitability of operations improved due to factors including synergies
achieved through business acquisitions and continuous improvements in
operational efficiency, although the weakened profitability of municipal
contracts weighed down on the division's operating profit.
Industrial Services
October-December
The division's net sales for the final quarter totalled EUR 20.3 million (EUR
20.9 million), showing a decrease of 2.8%. Operating profit was EUR 1.6 million
(EUR 1.6 million) and operating profit excluding non-recurring items was EUR
2.1 million (EUR 2.7 million).
The demand for services remained strong in hazardous waste management, and also
grew slightly in process cleaning. Demand remained unchanged from the
comparison period in sewer maintenance and decreased in environmental
construction.
Operating profit excluding non-recurring items declined primarily due to the
weakened profitability of process cleaning and sewer maintenance in a tight
competitive situation.
Year 2014
The Industrial Services division's net sales for 2014 totalled EUR 77.8 million
(EUR 75.5 million), showing an increase of 3.0%. Operating profit was EUR 6.5
million (EUR 5.2 million) and operating profit excluding non-recurring items
was EUR 7.1 million (EUR 6.7 million).
Net sales increased in hazardous waste management, sewer maintenance and
process cleaning. In environmental construction, net sales were lower than in
the previous year.
The division improved the profitability of its operations as a result of
efficiency improvement measures and increasing volume.
Facility Services
October-December
The division's net sales for the final quarter were down by 4.1% to EUR 68.8
million (EUR 71.7 million). Operating profit totalled EUR 1.7 million
(operating loss EUR 5.6 million) and operating profit excluding non-recurring
items was EUR 2.6 million (EUR 1.4 million).
The division's net sales declined year-on-year due to planned business
downsizing in Sweden and low demand for damage repair services. In addition,
net sales was impacted by lower demand for services in the cleaning and
property maintenance businesses. The demand for maintenance of technical
systems remained strong.
Profitability improved significantly in maintenance of technical systems and
Swedish cleaning operations. Profitability was also affected by the management
of personnel costs in the cleaning business. Nevertheless, the division's
operating profit was affected by the continued decline in the profitability of
damage repair services.
Year 2014
The Facility Services division's net sales for 2014 amounted to EUR 274.7
million (EUR 292.5 million), showing a decrease of 6.1%. Operating profit
totalled EUR 10.6 million (EUR 4.4 million). Operating profit excluding
non-recurring items was EUR 11.7 million (EUR 11.9 million).
The division's net sales declined year-on-year due to planned business
downsizing in Sweden and lower than normal demand for damage repair services
and seasonal work in cleaning services and property maintenance.
The division's profitability was decreased by the lower demand for additional
services in the cleaning and property maintenance businesses and by the weak
profitability of damage repair services. In maintenance of technical systems,
profitability developed favourably during the year due to higher demand.
The demand for the division's additional services declined, which had a
negative impact on both net sales and profitability. The entire division is
undergoing a major reorganisation process in order to adapt operations to the
changes in market conditions, which affects the profitability.
Renewable Energy Sources
October-December
Final quarter net sales of Renewable Energy Sources (L&T Biowatti) were down by
24.4% to EUR 12.0 million (EUR 15.8 million). The operating profit was EUR 1.0
million (EUR 0.6 million) and operating profit excluding non-recurring items
was EUR 0.6 million (EUR 0.6 million).
The decrease in net sales was attributable to the later start of the heating
season.
As a result of efficiency improvement measures, operational efficiency improved
year-on-year. The operating profit was affected by a write-down of EUR 0.3
million on the company's inventory.
Year 2014
The net sales of Renewable Energy Sources (L&T Biowatti) in 2014 were down by
23.8% to EUR 44.2 million (EUR 58.0 million). Operating profit was EUR 1.6
million (EUR 1.4 million) and operating profit excluding non-recurring items
was EUR 1.4 million (EUR 1.1 million).
The decrease in net sales was primarily attributable to the short heating
season early in the year, the delayed start to the heating season compared to
the previous year, and the planned downsizing of unprofitable operations.
As a result of efficiency improvement measures, profitability improved in spite
of decrease in net sales.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 14.0 -1.6 48.5 33.2
Non-recurring items:
Gain on sale of L&T Biowatti Oy equipment -0.4 -0.1 -0.4 -0.5
Impairment of EcoStream Oy shares 5.0
L&T Recoil Oy 6.4
Divestment of Latvian business operations -1.1
Impairment of goodwill in Swedish business 7.0 7.0
operations
Potential costs of closure of divested land areas 5.0 5.0
Discontinuation of the sewer renovation business 1.2 1.2
Restructuring costs 1.4 0.0 2.0 1.0
Other non-recurring items -1.8 -1.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items 13.2 11.5 53.8 51.8
FINANCING
Cash flows from operating activities amounted to EUR 79.6 million (EUR 86.4
million). A total of EUR 2.2 million in working capital was released (EUR 7.9
million released).
At the end of the period, interest-bearing liabilities amounted to EUR 96.0
million (EUR 122.8 million).
Net interest-bearing liabilities amounted to EUR 52.0 million (EUR 64.4
million) and decreased by EUR 12.3 million in the final quarter.
Net financial expenses in 2014 amounted to EUR 21.9 million (EUR 2.9 million).
Net financial expenses were 3.4% (0.4%) of net sales. The increase in net
financial expenses was primarily due to the EUR 16.7 million payment made under
the L&T Recoil Oy guarantee commitment. Fluctuations in the exchange rates
increased financial expenses by EUR 3.0 million.
The average interest rate on long-term loans (with interest-rate hedging) was
1.7% (1.7%). Long-term loans totalling EUR 24.8 million will mature in 2015.
The equity ratio was 46.3% (43.7%) and the gearing rate was 25.2 (30.4). Liquid
assets at the end of the period amounted to EUR 44.0 million (EUR 58.5
million).
Of the EUR 100 million commercial paper programme, EUR 0 (EUR 35.0 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.
During the review period, the company adopted a new form of financing by
issuing a EUR 30 million senior unsecured bond. 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). Approximately 86% of the loans are hedged
against fluctuations in the rouble exchange rate.
DISTRIBUTION OF ASSETS
The Annual General Meeting held on 19 March 2014 resolved that a dividend of
EUR 0.50 per share be paid on the basis of the balance sheet that was adopted
for the financial year 2013. The dividend, totalling EUR 19.4 million, was paid
to shareholders on 31 March 2014.
CAPITAL EXPENDITURE
In 2014, gross capital expenditure totalled EUR 44.7 million (EUR 32.7
million), consisting mainly of machine and equipment purchases and small
targeted business acquisitions.
PERSONNEL
In 2014, the average number of employees converted into full-time equivalents
was 7,257 (8,267). At the end of the period, Lassila & Tikanoja had 7,830
(8,847) full-time and part-time employees. Of these, 7,076 (7,088) worked in
Finland and 754 (1,759) in other countries. The number of employees working in
other countries was mainly decreased by the divestment of the Latvian business
operations.
PROPOSAL FOR THE DISTRIBUTION OF ASSETS
According to the financial statements, Lassila & Tikanoja plc's unrestricted
equity amounts to EUR 79,490,019.06, with the operating profit for the period
representing EUR 13,766,442.62. There were no substantial changes in the
financial standing of the company after the end of the period, and the solvency
test referred to in Chapter 13, Section 2 of the Companies Act does not affect
the amount of distributable assets.
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.75 per share be paid.
The dividend is paid to shareholders included in the company shareholder
register maintained by Euroclear Finland Oy on the record date, 20 March 2015.
The Board proposes to the Annual General Meeting that the dividend be paid on
27 March 2015.
No dividend shall be paid on shares held by the company on the record date of
20 March 2015.
On the day the proposal for the distribution of assets was made, the number of
shares entitling to dividend was 38,617,980, which means the total amount of
the dividend would be EUR 28,963,485.00.
Earnings per share amounted to EUR 0.47. The proposed dividend is 160.0% of the
earnings per share.
L&T's online Annual Report, which includes the report by the Board of Directors
and the financial statements for 2014, will be published in the week starting
on 23 February 2015 at www.lassila-tikanoja.com/annualreport2014.
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading on Nasdaq Helsinki in 2014, excluding the shares held by
the company in Lassila & Tikanoja plc, was 10,191,394 shares, which is 26.3%
(18.7%) of the average number of outstanding shares. The value of trading was
EUR 145.2 million (EUR 99.5 million). The trading price varied between EUR
15.84 and EUR 12.75. The closing price was EUR 15.14. At the end of the period,
the market capitalisation excluding the shares held by the company was EUR
584.7 million (EUR 589.5 million).
Own shares
At the end of the period, the company held 108,894 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 38,747,465. The average number of shares excluding the
shares held by the company was 38,737,749.
Shareholders
At the end of the period, the company had 10,152 (9,320) shareholders.
Nominee-registered holdings accounted for 17.9% (21.7%) of the total number of
shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 19 March 2014 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 possibly held by the company through a share issue and/or issuance of
option rights or other special rights entitling 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 19 March 2014, adopted the
financial statements and consolidated financial statements for 2013 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 0.50 per share,
totalling EUR 19.4 million, be paid on the basis of the balance sheet to be
adopted for the financial year 2013. It was decided that the dividend be paid
on 31 March 2014.
The Annual General Meeting confirmed the number of members of the Board of
Directors as six. Heikki Bergholm, Eero Hautaniemi, Hille Korhonen, Sakari
Lassila and Miikka Maijala were re-elected and Laura Lares 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 19 March 2014.
BOARD OF DIRECTORS
The members of Lassila & Tikanoja plc's Board of Directors are Heikki Bergholm,
Eero Hautaniemi, Hille Korhonen, Laura Lares, Sakari Lassila and Miikka
Maijala. At its organising meeting held 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 Chairman and
Hille Korhonen and Miikka Maijala as members of the remuneration committee.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 4, CHAPTER 6 OF THE
SECURITIES MARKET ACT
In a release published on 3 March 2014, the company announced that Lassila &
Tikanoja and Bioinvest SIA have signed an agreement on the sale of L&T's
business operations in Latvia to Bioinvest SIA. In a release published on 13
March 2014, the company announced that the divestment of the business
operations had been completed. The total net sales of the divested business
operations amount to approximately EUR 16 million, most of which is allocated
to the Environmental Services division. As a result of the divestment,
approximately 950 employees transferred to Bioinvest.
In a release published on 21 March 2014, the company announced that it had been
informed that the financiers of the EcoStream Group had called in a loan
granted to L&T Recoil Oy, part of the EcoStream Group. In addition, the company
announced that it had received a claim from the financing banks to pay
approximately EUR 16.7 million on the basis of a loan guarantee commitment
associated with L&T Recoil Oy's loans.
Lassila & Tikanoja's total risk associated with the EcoStream Group, including
the above guarantee commitment, is approximately EUR 23.4 million as announced
earlier. Of this amount, the above guarantee commitment of approximately EUR
16.7 million has an effect on cash flow.
On 30 April 2014, the company announced that it had received information
according to which the District Prosecutor for Helsinki had decided to drop the
charges against the company's President and CEO Pekka Ojanpää and eight other
current and former members of Lassila & Tikanoja's management staff who were
accused of offences related to occupational health and safety and working hours
legislation. The corporate fine and claim for advantage received remained in
force against the company.
On 3 July 2014, the company published a press release announcing that the
Helsinki District Court has exonerated Lassila & Tikanoja from summary penal
orders related to overtime work offences. The corporate fine claim presented by
the prosecutor was dropped and the Finnish State was obligated to compensate
the company for the legal costs of the case. According to the Court, the
guidelines and monitoring systems of the company have been adequate and the
safety or health of the employees had not been jeopardised.
The District Court considered five of the company's current or former
supervisors to be guilty of offences related to working hours legislation.
Three of them were sentenced to pay 8-15 unit fines and two were left without a
sentence by reason of the triviality of the criminal act.
On 1 August 2014, the company announced a change to its outlook. Operating
profit excluding non-recurring items is expected to remain at the 2013 level or
slightly below.
Previously, the company estimated that comparable net sales in 2014 would
remain at the 2013 level and operating profit excluding non-recurring items
would remain at the 2013 level or improve slightly.
On 28 August 2014, the company announced that the Finnish Financial Supervisory
Authority had approved Lassila & Tikanoja plc's base prospectus pursuant to the
Securities Markets Act, and that the company was considering the issuance of a
senior unsecured bond based on the base prospectus.
On 5 September 2014, the company announced that Ville Rantala, Vice President,
Industrial Services at Lassila & Tikanoja plc and member of the Group Executive
Board will leave the company at his own request by the end of 2014, and that
recruitment for a new Vice President has already begun.
On 8 September 2014, the company announced that it had received an announcement
pursuant to section 5, chapter 9, of the Securities Markets Act from Nordea
Funds Ltd, announcing that its current holding of the shares and votes in
Lassila & Tikanoja plc has risen above the threshold of 5%.
On 8 September 2014, the company announced it is issuing a EUR 30 million
senior unsecured bond. The bond matures on 15 September 2019 and carries a
fixed annual interest rate of 2.125 per cent. The offering was oversubscribed.
Lassila & Tikanoja will apply for listing of the bond on NASDAQ OMX Helsinki.
On 17 September 2014, the company announced that the Finnish Financial
Supervisory Authority has approved the listing prospectus of the bond, which is
available in English on the company's website at
www.lassila-tikanoja.com/investors.
On 30 September 2014, the company issued a stock exchange release on its
Capital Markets Day, the programme of which included reviewing the Group's
strategy and its implementation.
On 23 October 2014, the company announced that Antti Tervo, M.Sc. (Econ.), born
1978, has been appointed as Vice President of Industrial Services from 1
January 2015. Tervo has served as the company's Director responsible for the
supply chain since 2012. L&T's Development Director since 2012, Tuomas
Mäkipeska, M.Sc. (Econ.), born 1978, will take care of, in addition to his
current duties, the duties of Vice President of Renewable Energy Sources from 1
January 2015.
On 27 October 2014, the company announced that its Board of Directors has
resolved to exercise the authorisation by the Annual General Meeting on 19
March 2014 to repurchase a maximum of 150,000 of the company's own shares,
which corresponds to approximately 0.4% of the total number of issued shares.
The repurchased shares will be used for the company's near-term incentive
programs.
On 18 December 2014, the company announced that Tutu Wegelius-Lehtonen, Lic.Sc.
(Tech.), born 1970, is the new Director responsible for the supply chain at
Lassila & Tikanoja plc, starting 16 February 2015.
EVENTS AFTER THE BALANCE SHEET DATE
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.
The company's management is not aware of any other events of material
importance after the balance sheet date that might have affected the
preparation of the financial statements.
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.
More detailed information on L&T's risks and risk management is available in
the Annual Report for 2013, in the Report of the Board of Directors and in the
consolidated financial statements.
OUTLOOK FOR THE YEAR 2015
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 DECEMBER 2014
CONSOLIDATED INCOME STATEMENT
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 162.3 169.7 639.7 668.2
Cost of sales -142.8 -157.1 -561.6 -597.3
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Gross profit 19.5 12.6 78.1 70.9
Other operating income 3.7 1.3 7.0 4.3
Sales and marketing expenses -3.7 -4.0 -14.2 -14.5
Administrative expenses -3.6 -3.7 -12.7 -13.0
Other operating expenses -2.0 -0.8 -9.7 -2.5
Impairment, property, plant and equipment and 0.0 0.0 0.0 -5.0
other non-current assets
Impairment, goodwill and other intangible assets 0.0 -7.0 0.0 -7.0
--------------------------------------------------------------------------------
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Operating profit 14.0 -1.6 48.5 33.2
Financial income 0.1 0.2 0.4 0.5
Financial expenses -3.5 -0.9 -22.3 -3.4
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Profit before tax 10.6 -2.3 26.6 30.3
Income taxes -2.3 1.0 -8.4 -8.1
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Profit for the period 8.3 -1.3 18.1 22.2
Attributable to:
Equity holders of the company 8.3 -1.3 18.1 22.2
Non-controlling interest 0.0 0.0 0.0 0.0
Earnings per share attributable to equity
holders of the parent company:
Earnings per share, EUR 0.21 -0.03 0.47 0.57
Diluted earnings per share, EUR 0.21 -0.03 0.47 0.57
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million 10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the period 8.3 -1.341 18.1 22.2
Items not to be recognised through profit or loss
Items arising from re-measurement of defined -0.1 0.1 -0.1 0.1
benefit plans
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Items not to be recognised through profit or loss, -0.1 0.1 -0.1 0.1
total
Items potentially to be recognised through profit
or loss
Hedging reserve, change in fair value -0.2 -0.5 -0.6 -0.4
Currency translation differences -1.4 -0.2 -2.1 -0.4
Currency translation differences recognised in 0.0 0.0 0.3 0.0
profit or loss
Currency translation differences, non-controlling -0.1 0.0 -0.1 0.0
interest
-----------------------------
Items potentially to be recognised through profit -1.7 -0.7 -2.4 -0.8
or loss, total
--------------------------------------------------------------------------------
Total comprehensive income, after tax 6.5 -2.0 15.6 21.4
Attributable to:
Equity holders of the company 6.6 -2.0 15.7 21.5
Non-controlling interest -0.1 0.0 -0.1 0.0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 12/2013 12/2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 109.9 112.8
Customer contracts arising from acquisitions 5.3 5.1
Agreements on prohibition of competition 0.1 0.4
Other intangible assets arising from business acquisitions 0.7 0.0
Other intangible assets 9.7 8.0
----------------------------------------------------------------------------
125.7 126.3
Property, plant and equipment
Land 3.3 3.8
Buildings and constructions 44.3 49.7
Machinery and equipment 112.2 115.8
Other 0.1 0.1
Prepayments and construction in progress 2.2 2.2
----------------------------------------------------------------------------
162.1 171.5
Other non-current assets
Holdings in associated companies 0.0 0.0
Available-for-sale investments 0.6 4.3
Finance lease receivables 3.2 3.7
Deferred tax assets 2.7 2.8
Other receivables 2.3 2.4
---------------------------------------------------------------------------- 8.7 13.2
Total non-current assets 296.5 311.0
Current assets
Inventories 22.6 26.1
Trade and other receivables 94.7 100.0
Derivative receivables 0.1 0.1
Prepayments 0.5 0.3
Current available-for-sale financial assets 10.0 0.0
Cash and cash equivalents 34.0 58.5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total current assets 161.8 185.0
Total assets 458.3 496.0
----------------------------------------------------------------------------
EUR million 12/2014 12/2013
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the parent company
Share capital 19.4 19.4
Other reserves -3.9 -1.5
Invested unrestricted equity reserve 0.3 0.3
Retained earnings 172.2 170.9
Profit for the period 18.1 22.2
-----------------------------------------------------------------------------
206.2 211.2
Non-controlling interest 0.2 0.2
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Total equity 206.3 211.5
Liabilities
Non-current liabilities
Deferred tax liabilities 24.7 25.8
Retirement benefit obligations 1.0 0.8
Provisions 4.2 6.1
Interest-bearing liabilities 71.2 65.9
Other liabilities 0.3 0.5
-----------------------------------------------------------------------------
101.4 99.0
Current liabilities
Interest-bearing liabilities 24.8 57.0
Trade and other payables 120.4 120.0
Derivative liabilities 1.4 0.5
Tax liabilities 0.7 4.7
Provisions 3.3 3.4
-----------------------------------------------------------------------------
150.7 185.5
Total liabilities 252.0 284.5
Total equity and liabilities 458.3 496.0
-----------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 12/201 12/201
4 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 18.1 22.2
Adjustments
Income taxes 8.4 8.1
Deprecation and impairment 40.2 54.0
Financial income and expenses 21.9 2.9
Gain on sale of shares -1.5 0.0
Other 1.9 3.8
--------------------------------------------------------------------------------
Net cash generated from operating activities before change in 89.1 91.0
working capital
Change in working capital
Change in trade and other receivables -1.4 2.8
Change in inventories 3.6 -1.2
Change in trade and other payables 0.0 6.3
--------------------------------------------------------------------------------
Change in working capital 2.2 7.9
Interest paid -3.0 -3.6
Interest received 0.4 0.5
Income taxes -9.1 -9.3
--------------------------------------------------------------------------------
Net cash from operating activities 79.6 86.4
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of cash acquired -9.8 -
Proceeds from sale of subsidiaries and businesses, net of sold 13.5 -
cash
Purchases of property, plant and equipment and intangible assets -34.1 -28.1
Proceeds from sale of property, plant and equipment and 0.4 1.2
intangible assets
Purchases of available-for-sale investments -0.2 -
Change in other non-current receivables 0.3 0.4
Proceeds from sale of available-for-sale investments - -
Dividends received 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in investing activities -29.8 -26.5
Cash flows from financing activities
Change in short-term borrowings -32.2 22.9
Proceeds from long-term borrowings 29.9 30.0
Repayments of long-term borrowings -24.8 -26.2
Dividends paid and other asset distribution -19.4 -42.5
Acquisition of own shares -1.9 0.0
L&T Recoil Oy guarantee commitment -16.7 -
Other financing items 0.9 -
Net cash generated from financing activities -64.2 -15.9
--------------------------------------------------------------------------------
EUR million 12/2014 12/2013
-------------------------------------------------------------
-------------------------------------------------------------
Net change in liquid assets -14.4 44.1
Liquid assets at beginning of period 58.5 14.6
Effect of changes in foreign exchange rates -0.1 -0.2
Liquid assets at end of period 44.0 58.5
-------------------------------------------------------------
Liquid assets
EUR million 12/2014 12/2013
-------------------------------------------------------------
-------------------------------------------------------------
Cash and cash equivalents 34.0 58.5
Available-for-sale financial assets 10.0 0.0
-------------------------------------------------------------
Total 44.0 58.5
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 -0.8 0.0 0.0 29.4 184.5 232.5 0.3 232.8
on 1
Jan.
2013
Total
compre
hensive
income
Profit 22.2 22.2 0.0 22.2
for
the
period
Items 0.1 0.1 0.1
arisin
g from
re-mea
suremen
t of
define
d
benefi
t plans
Hedging -0.4 -0.4 -0.4
reserv
e,
change
in
fair
value
Availab 0.0 0.0 0.0
le-for-
sale
financ
ial
assets
Currenc -0.4 -0.4 0.0 -0.5
y
transl
ation
differ
ences
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 0.0 -0.4 0.0 -0.4 0.0 22.3 21.5 0.0 21.4
compre
hensive
income
Transac
tions
with
shareh
olders
Share-b -0.1 0.4 0.4 0.4
ased
benefi
ts
Dividen -13.5 -13.5 -13.5
ds paid
Dividen 0.0 0.0 0.0
ds
return
ed
Capital -29.0 -29.0 -29.0
repaym
ent
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transac 0.0 0.0 0.0 0.0 -29.1 -13.1 -42.2 -42.2
tions
with
shareh
olders,
total
Other -0.6 -0.6 -0.6
change
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity 19.4 -1.2 0.0 -0.3 0.3 193.1 211.2 0.2 211.5
on 31
Dec.
2013
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 18.1 18.1 0.0 18.1
for
the
period
Items -0.1 -0.1 -0.1
arisin
g from
re-mea
suremen
t of
define
d
benefi
t plans
Hedging -0.6 -0.6 -0.6
reserv
e,
change
in
fair
value
Availab 0.0 0.0
le-for-
sale
financ
ial
assets
Currenc -1.8 -1.8 -0.1 -1.9
y
transl
ation
differ
ences
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 0.0 -1.8 0.0 -0.6 0.0 18.0 15.7 -0.1 15.6
compre
hensive
income
Transac
tions
with
shareh
olders
Share-b 0.0 -0.1 0.0 0.0
ased
benefi
ts
Dividen -19.4 -19.4 -19.4
ds paid
Dividen 0.0 0.0 0.0
ds
return
ed
Acquisi -1.9 -1.9 -1.9
tion of
own
shares
Transac 0.0 0.0 0.0 0.0 0.0 -19.4 -19.4 -19.4
tions
with
shareh
olders,
total
--------------------------------------------------------------------------------
Other -1.3 -1.3 -1.3
change
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity 19.4 -3.0 0.0 -0.9 0.3 190.3 206.2 0.2 206.3
on 31
Dec.
2014
KEY FIGURES
10-12/ 10-12/ 1-12/ 1-12/
2014 2013 2014 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.21 -0.03 0.47 0.57
Diluted earnings per share, EUR 0.21 -0.03 0.47 0.57
Cash flows from operating activities per share, 0.79 0.65 2.06 2.23
EUR
EVA, EUR million 9.5 -4.9 29.1 12.4
Gross capital expenditure, EUR million 16.8 8.9 44.7 32.7
Depreciation, amortisation and impairment, EUR 10.2 17.5 40.2 54.0
million
Equity per share, EUR 5.34 5.46
Dividend/share, EUR 0.75* 0.50
Dividend/earnings, EUR 160.0* 87.2
Effective dividend yield, % 5.0* 3.3
P/E ratio 32.32 26.60
Return on equity (ROE), % 8.7 10.0
Return on invested capital, ROI, % 15.4 10.6
Equity ratio, % 46.3 43.7
Gearing, % 25.2 30.4
Net interest-bearing liabilities, EUR million 52.0 64.4
Average number of employees in full-time 7,257 8,267
equivalents
Total number of full-time and part-time 7,830 8,847
employees at end of period
Number of outstanding shares adjusted for
issues, 1,000 shares
average during the period 38,729 38,704
at end of period 38,702 38,707
average during the period, diluted 38,740 38,721
* Proposal by the Board of Directors
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.
From the beginning of 2014, the figures in the tables are presented in millions
of euros. The comparison figures have been restated accordingly. The figures
are rounded to the nearest 0.1 million euros and, consequently, the sum of
individual figures may deviate from the sum total presented.
More detailed information on accounting policies is presented in the
consolidated financial statements of Lassila & Tikanoja plc dated 31 December
2014 and released on 25 February 2015.
The information presented in the financial statements release has not been
audited.
SEGMENT INFORMATION
Net sales
10-12/ 10-12/
2014 2013
------- ---------------
EUR million Extern Inter-di Total Extern Inter-div Total Total net
al vision al ision sales, change
%
--------------------------------------------------------------------------------
Environmental 63.6 1.2 64.8 64.5 1.2 65.7 -1.3
Services
------- -------
Industrial 19.1 1.1 20.3 20.2 0.6 20.9 -2.8
Services
------- -------
Facility 67.6 1.1 68.8 70.2 1.5 71.7 -4.1
Services
------- -------
Renewable 11.9 0.1 12.0 14.9 1.0 15.8 -24.4
Energy
Sources
------- -------
Eliminations -3.5 -3.5 -4.4 -4.4
--------------------------------------------------------------------------------
-------
Total 162.3 0.0 162.3 169.7 0.0 169.7 -4.4
------- ---------------
1-12/ 1-12/
2014 2013
------- ---------------
EUR million Extern Inter-di Total Extern Inter-div Total Total net
al vision al ision sales, change
%
--------------------------------------------------------------------------------
Environmental 250.9 3.7 254.5 254.1 3.8 257.9 -1.3
Services
------- -------
Industrial 74.3 3.5 77.8 72.1 3.4 75.5 3.0
Services
------- -------
Facility 270.6 4.2 274.7 287.8 4.7 292.5 -6.1
Services
------- -------
Renewable 44.0 0.2 44.2 54.1 3.9 58.0 -23.8
Energy
Sources
------- -------
Eliminations -11.6 -11.6 -15.8 -15.8
--------------------------------------------------------------------------------
-------
Total 639.7 0.0 639.7 668.2 0.0 668.2 -4.3
------- ---------------
Operating profit
EUR million 10-12/ % 10-12/ % 1-12/ % 1-12/ %
2014 2013 2014 2013
--------------------------------------------------------------------------------
Environmental 10.8 16.6 2.9 4.4 37.3 14.7 30.1 11.7
Services
Industrial Services 1.6 8.0 1.6 7.5 6.5 8.4 5.2 6.9
Facility Services 1.7 2.5 -5.6 -7.8 10.6 3.9 4.4 1.5
Renewable Energy 1.0 8.7 0.6 3.7 1.6 3.7 1.4 2.5
Sources
Group -1.2 -1.1 -7.6 -8.0
administration and
other
--------------------------------------------------------------------------------
Total 14.0 8.6 -1.6 -1.0 48.5 7.6 33.2 5.0
OTHER SEGMENT INFORMATION
EUR million 12/2014 12/2013
------------------------------------------------
Assets
Environmental Services 212.4 214.5
Industrial Services 72.6 70.0
Facility Services 98.8 103.4
Renewable Energy Sources 24.6 29.4
Group administration and other 1.1 7.5
Unallocated assets 48.9 71.3
------------------------------------------------
L&T total 458.3 496.0
Liabilities
Environmental Services 50.5 51.8
Industrial Services 21.9 21.5
Facility Services 48.3 49.6
Renewable Energy Sources 6.2 5.5
Group administration and other 1.9 2.1
Unallocated liabilities 123.2 154.0
------------------------------------------------
L&T total 252.0 284.5
EUR million 10-12/2014 10-12/2013 1-12/2014 1-12/2013
----------------------------------------------------------------------------
Capital expenditure
Environmental Services 11.6 4.4 26.6 15.7
Industrial Services 1.8 0.9 6.6 3.2
Facility Services 3.4 3.4 11.3 11.3
Renewable Energy Sources 0.0 0.1 0.2 0.3
Group administration and other 0.0 0.1 0.0 2.2
----------------------------------------------------------------------------
L&T total 16.8 8.9 44.7 32.7
Depreciation and amortisation
Environmental Services 4.9 5.4 20.1 21.9
Industrial Services 2.0 1.6 6.9 6.6
Facility Services 3.2 3.3 13.0 13.2
Renewable Energy Sources 0.1 0.1 0.2 0.3
Group administration and other 0.0 0.0 0.0 0.0
----------------------------------------------------------------------------
L&T total 10.2 10.5 40.2 42.0
Impairment
Environmental Services
Industrial Services
Facility Services 7.0
Renewable Energy Sources
Group administration and other 5.0
---------------------------------------------------------------------
L&T total 0.0 0.0 0.0 12.0
INCOME STATEMENT BY QUARTER
EUR million 10-12/ 7-9/ 4-6/ 1-3/ 10-12/
2014 2014 2014 2014 2013
-----------------------------------------------------------------------
Net sales
Environmental Services 64.8 64.6 64.2 60.9 65.7
Industrial Services 20.3 21.8 19.7 16.0 20.9
Facility Services 68.8 68.6 68.3 69.0 71.7
Renewable Energy Sources 12.0 6.1 10.3 15.8 15.8
Group administration and other
Interdivision net sales -3.5 -3.1 -2.7 -2.4 -4.4
-----------------------------------------------------------------------
L&T total 162.3 158.1 159.8 159.4 169.7
Operating profit
Environmental Services 10.8 10.7 9.3 6.6 2.9
Industrial Services 1.6 3.1 1.9 -0.1 1.6
Facility Services 1.7 6.3 2.1 0.6 -5.6
Renewable Energy Sources 1.0 -0.5 0.3 0.8 0.6
Group administration and other -1.2 -0.1 -0.6 -5.7 -1.1
-----------------------------------------------------------------------
L&T total 14.0 19.4 12.9 2.1 -1.6
Operating margin
Environmental Services 16.6 16.5 14.4 10.9 4.5
Industrial Services 8.0 14.2 9.8 -0.9 7.6
Facility Services 2.5 9.1 3.0 0.8 -7.8
Renewable Energy Sources 8.7 -8.1 2.5 5.2 3.7
-----------------------------------------------------------------------
-----------------------------------
L&T total 8.6 12.3 8.1 1.3 -1.0
Financial income and expenses, net -3.5 -1. -0.1 -17.7 -0.7
-----------------------------------------------------------------------
Profit before tax 10.6 18.5 12.9 -15.5 -2.3
BUSINESS ACQUISITIONS, COMBINED
EUR million Fair value
-------------------------------------------------------------
Intangible assets 3.5
Property, plant and equipment 3.5
Investments 0.0
Receivables 0.4
Cash and cash equivalents 0.8
-------------------------------------------------------------
Total assets 8.1
Interest-bearing liabilities 0.2
Other liabilities 0.5
Deferred tax liabilities 0.1
-------------------------------------------------------------
Total liabilities 0.8
Net assets acquired 7.3
Total consideration 10.6
Goodwill 3.3
Effect on cash flow
Consideration paid in cash -10.6
Cash and cash equivalents of the acquired company 0.8
-------------------------------------------------------------
Cash flow from investing activities -9.8
Environmental Services acquired the share capital of the following companies:
Paperitiikerit Oy on 1 February 2014 and Joutsan Kuljetus Oy on 1 March 2014.
In addition, Environmental Services acquired the business operations of the
following companies: Kiinteistöhuolto Rytkönen Oy on 23 September 2014 and J A
Tauriainen Oy on 1 December 2014.
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 1-12/2014 1-12/2013
------------------------------------------------------------
------------------------------------------------------------
Carrying amount at beginning of period 126.3 138.4
Business acquisitions 6.9
Other capital expenditure 4.5 2.6
Disposals -5.6
Deprecation and impairment -5.6 -14.0
Transfers between items -0.1 -0.3
Exchange differences -0.7 -0.4
------------------------------------------------------------
Carrying amount at end of period 125.7 126.3
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 1-12/2014 1-12/2013
------------------------------------------------------------
------------------------------------------------------------
Carrying amount at beginning of period 171.5 180.2
Business acquisitions 3.4
Other capital expenditure 29.9 28.1
Disposals -6.0 -1.3
Deprecation and impairment -34.7 -35.0
Transfers between items 0.1 0.3
Exchange differences -2.2 -0.8
------------------------------------------------------------
Carrying amount at end of period 162.1 171.5
CAPITAL COMMITMENTS
EUR million 12/2014 12/2013
-----------------------------------------------
-----------------------------------------------
Intangible assets 0.0 0.0
Property, plant and equipment 3.4 4.0
-----------------------------------------------
Total 3.4 4.0
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 and other le liabili under by by hierar
liabilit receiva financia ties hedge balance balance chy
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 3
le-for-
sale
invest
ments
Finance 3.2 3.2 3.2 2
lease
receiv
ables
Other 1.9 1.9
receiv
ables
Current
financ
ial
assets
Trade 93.1 4.0 97.1
and
other
receiv
ables
Derivat 0.1 0.1
ive
receiv
ables
Cash 34.0 34.0
and
cash
equiva
lents
-------------------------------------------------------------------------
Total 0.1 132.1 4.6 0.0 0.0 136.9 3.2
financ
ial
assets
Non-cur
rent
financ
ial
liabil
ities
Borrowi 71.2 71.2 71.6 2
ngs
Other 0.0 0.0
liabil
ities
Current
financ
ial
liabil
ities
Borrowi 24.8 24.8
ngs
Trade 57.7 57.7
and
other
payabl
es
Derivat 0.8 0.6 2
ive
liabil
ities
-------------------------------------------------------------------------
Total 0.8 153.7 0.6 153.7 71.6
financ
ial
liabil
ities
CONTINGENT LIABILITIES
Securities for own commitments
EUR million 12/2014 12/2013
--------------------------------------------------------------------
--------------------------------------------------------------------
Mortgages on rights of tenancy 0.2 0.1
Company mortgages 0.5 0.6
Other securities 0.2 0.2
Bank guarantees required for environmental permits 8.4 9.5
Other securities are security deposits.
Operating lease liabilities
EUR million 12/2014 12/2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Maturity not later than one year 2.9 5.0
Maturity later than one year and not later than five years 2.8 6.1
Maturity later than five years 2.0 2.2
----------------------------------------------------------------------------
Total 7.7 13.4
Liabilities associated with derivative agreements
Cross currency interest rate swaps
EUR million 12/2014 12/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 years 9.5
--------------------------------------------------------------------------------
Total 0.0 16.7
Fair value 0.1
Loans denominated in other currencies were converted to euro-denominated loans
in 2014.
Interest rate swaps
EUR million 12/2014 12/2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Nominal values of interest rate swaps
Maturity not later than one year 6.4 14.0
Maturity later than one year and not later than five years 14.2 16.7
Maturity later than five years 0.0 0.9
----------------------------------------------------------------------------
Total 20.5 31.7
Fair value -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 balance
sheet date.
Commodity derivatives
Metric tonnes 12/2014 12/2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 8.3 9.7
Maturity later than one year and not later than five years 0.0 0.8
----------------------------------------------------------------------------
Total 8.3 10.6
Fair value -0.6 -0.1
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 12/2014 12/2013
-----------------------------------------------------
Nominal values of forward contracts
Maturity not later than one year 10.9 0.0
Fair value -0.1 0.0
Hedge accounting under IAS 39 has not been applied to the currency derivatives.
Changes in fair values 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 2013: 6.52% and 2014: 6.58 %
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, 4 February 2015
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 to focus on their core business
and protect the environment. Together, we can create well-being and jobs. L&T
operates in Finland, Sweden and Russia. L&T's net sales in 2014 amounted to EUR
639.7 million and the company employs 8,000 persons. L&T is listed on Nasdaq
Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lassila-tikanoja.com
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