2011-10-25 07:00:00 CEST
2011-10-25 07:00:10 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January-30 September 2011
Helsinki, Finland, 2011-10-25 07:00 CEST (GLOBE NEWSWIRE) --
-- Net sales for the third quarter EUR 163.5 million (EUR 143.8 million);
operating profit EUR 18.2 million (EUR 16.3 million); operating profit
excluding non-recurring items EUR 18.2 million (EUR 16.8 million); earnings
per
share EUR 0.32 (EUR 0.28)
-- Net sales for January-September EUR 485.1 million (EUR 446.7 million);
operating profit EUR 33.5 million (EUR 31.7 million); operating profit
excluding non-recurring items EUR 34.7 million (EUR 36.4 million); earnings
per share EUR 0.62 (EUR 0.54)
-- Full-year net sales will grow slightly from 2010 and operating profit
excluding non-recurring items is expected to remain at the 2010 level.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Third quarter
Lassila & Tikanoja's net sales for the third quarter increased by 13.7% to EUR
163.5 million (EUR 143.8 million). Operating profit was EUR 18.2 million (EUR
16.3 million), representing 11.1% (11.3%) of net sales, and operating profit
excluding non-recurring items was EUR 18.2 million (EUR 16.8 million). Earnings
per share were EUR 0.32 (EUR 0.28).
With the exception of Renewable Energy Sources, all divisions reported net
sales growth, approximately half of this growth being organic. Increased waste
and recycling volumes and the sustained healthy workload in Property
Maintenance prompted demand. In the cleaning business, growth was generated by
acquisitions.
The year-on-year improvement in operating profit could be primarily attributed
to increased demand for Environmental Services and Property Maintenance, as
well as cost cuts in the Renewable Energy Sources division. The joint venture
L&T Recoil was also able to reduce its losses.
January-September
Lassila & Tikanoja's net sales for January-September amounted to EUR 485.1
million (EUR 446.7 million); an increase of 8.6%. Operating profit was EUR 33.5
million (EUR 31.7 million), representing 6.9% (7.1%) of net sales, and
operating profit excluding non-recurring items was EUR 34.7 million (EUR 36.4
million). Earnings per share were EUR 0.62 (EUR 0.54).
Net sales grew in January-September as demand for environmental services and
industrial cleaning services perked up. The workload for Property Maintenance
also remained strong throughout the period. In addition, the acquisitions made
in the first half boosted net sales. Meanwhile the sale of wood-based fuels
failed to reach the comparison period's level, due to their weak
competitiveness.
Higher salary, subcontracting and fuel costs as well as the temporary rise in
waste disposal costs eroded profitability in January-September.
In the comparison period, non-recurring costs of EUR 3.0 million were recorded
for the discontinuation of the pellet business.
The income tax rate for the first half decreased following the Administrative
Court's decision on the tax deductibility of dissolution loss write-off; as a
result, EUR 1.6 million of deferred tax liabilities were recognised as income.
Consequently, earnings per share improved by EUR 0.04 per share.
Financial summary
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2011 2010 % 2011 2010 % 2010
--------------------------------------------------------------------------------
Net sales, EUR million 163.5 143.8 13.7 485.1 446.7 8.6 598.2
--------------------------------------------------------------------------------
Operating profit excluding 18.2 16.8 8.3 34.7 36.4 -4.7 45.5
non-recurring items, EUR
million*
--------------------------------------------------------------------------------
Operating profit, EUR million 18.2 16.3 11.7 33.5 31.7 5.8 40.2
--------------------------------------------------------------------------------
Operating margin, % 11.1 11.3 6.9 7.1 6.7
--------------------------------------------------------------------------------
Profit before tax, EUR 16.9 15.0 12.7 30.0 28.4 5.5 36.0
million
--------------------------------------------------------------------------------
Earnings per share, EUR 0.32 0.28 14.3 0.62 0.54 14.8 0.68
--------------------------------------------------------------------------------
EVA, EUR million 11.0 8.8 25.0 12.7 8.9 42.7 10.1
--------------------------------------------------------------------------------
* Breakdown of operating profit excluding non-recurring items is presented
below the division reviews.
NET SALES AND FINANCIAL PERFORMANCE BY DIVISION
Environmental Services
Third quarter
The division's net sales for the third quarter increased by 13.3% to EUR 85.9
million (EUR 75.8 million). Operating profit amounted to EUR 12.3 million (EUR
10.9 million), and operating profit excluding non-recurring items was EUR 12.3
million (EUR 10.9 million).
All services were able to grow their net sales from the comparison period,
thanks to higher waste volumes and the healthy demand for secondary raw
materials as well as their positive price development, even though the prices
of recycled materials began to decline towards the end of the period. Demand
for seasonal industrial cleaning services perked up, contributing to the
division's net sales growth. In waste management, prices of services were
revised at the beginning of the period to match higher production costs.
The division's operating profit rose from the comparison period, largely thanks
to volume growth and price hikes. The joint venture L&T Recoil was able to
reduce its losses, which also improved profitability. A scheduled maintenance
shutdown at the L&T Recoil plant, performed to raise capacity and operating
efficiency, kept production at a standstill for a month. The start-up process
commenced at the end of the period.
Net sales generated by the division's international operations grew but
profitability declined from the comparison period.
January-September
The Environmental Services division's net sales for January-September grew by
12.0% to EUR 241.9 million (EUR 216.0 million). Operating profit amounted to
EUR 25.7 million (EUR 25.5 million), and operating profit excluding
non-recurring items was EUR 25.7 million (EUR 25.8 million).
The division's net sales growth was primarily organic and could be attributed
to the increase in waste volumes and healthy demand for industrial cleaning
services. Similarly, the volumes and price level of secondary raw materials
improved significantly from the comparison period, even though price
development levelled off and took a downward turn towards the end of the
period. The acquisition of Papros Oy in the second quarter strengthened the
division's position in the recycled fibre markets.
In the first half, profitability was affected by lower than planned operating
rates of recycling plants, a temporary increase in waste disposal costs, and
increased production costs. The division did not entirely succeed in adapting
its process cleaning services to fluctuations in demand, but extensive
maintenance shutdown-related assignments in the summer months were completed as
planned.
Although the net sales and the operating rate of the joint venture L&T Recoil's
re-refinery improved from the comparison period, production reliability and
base oil supply have still not reached a satisfactory level. Losses in
January-September were smaller than in the comparison period, even though
maintenance shutdowns in the second and third quarter taxed the joint venture's
profitability.
The division's net sales from international operations remained unchanged but
operating profit declined slightly from the comparison period.
Several comprehensive service agreements were concluded in the retail trade
sector in the first half. A new Managreen service model was successfully
launched on the market. This concept offers customers the ability to manage
their environmental management agreements and the related network partners.
Cleaning and Office Support Services
Third quarter
The division's net sales for the third quarter totalled EUR 41.5 million (EUR
35.7 million); an increase of 16.5%. Operating profit amounted to EUR 3.7
million (EUR 4.1 million), and operating profit excluding non-recurring items
was EUR 3.7 million (EUR 4.3 million).
The division's net sales growth could be primarily attributed to acquisitions
made in the first half (Hansalaiset in Finland and Östgöta Städ in Sweden).
Furthermore, commissioned assignments in Finland sold better than a year
earlier.
The division's operating profit fell from the comparison period, due to the
integration costs associated with acquisitions, price competition and higher
production costs. In response to the rise in costs, the division implemented
price increases at the end of the quarter.
January-September
The division's net sales for January-September grew by 10.5% to EUR 117.2
million (EUR 106.0 million). Operating profit amounted to EUR 6.2 million (EUR
7.3 million), and operating profit excluding non-recurring items was EUR 6.4
million (EUR 7.7 million).
Net sales growth from the comparison period could largely be attributed to
acquisitions made in the first half. Sales of commissioned assignments perked
up. In Sweden, sales to new customers remained stable in January-September.
Start-up costs of new projects in the first half and the higher than expected
integration costs associated with the acquisitions made in the second quarter
had a negative impact on the division's profitability.
In the comparison period, the EUR 0.7 million credit loss recorded for Russian
operations weakened the operating profit.
Property Maintenance
Third quarter
The division's net sales for the third quarter increased by 16.3% to EUR 31.3
million (EUR 26.9 million). Operating profit amounted to EUR 3.6 million (EUR
3.3 million), and operating profit excluding non-recurring items was EUR 3.6
million (EUR 3.3 million).
All of the division's services saw their net sales improve from the comparison
period. Successful sales efforts in maintenance services for technical systems
and the strong workload in damage repair services contributed to a marked
increase in demand.
Operating profit increased slightly from the comparison period, although the
rise in production costs eroded the profitability of property maintenance. To
offset higher costs, the division implemented price increases at the end of the
quarter.
January-September
The Property Maintenance division's net sales for January-September grew by
10.1% to EUR 101.1 million (EUR 91.9 million). Operating profit amounted to EUR
6.3 million (EUR 7.1 million), and operating profit excluding non-recurring
items was EUR 6.3 million (EUR 7.2 million).
The division's net sales grew from the comparison period thanks to successful
sales of commissioned assignments of property maintenance and the strong
workload in maintenance services for technical systems and damage repair
services. Heavy snowfall in the first half and more extensive partnerships with
insurance companies helped boost sales of commissioned assignments.
Higher production and overtime costs taxed the division's operating profit. The
profitability of commissioned assignments was also weaker than a year earlier.
Renewable Energy Sources
Third quarter
Third-quarter net sales of Renewable Energy Sources (L&T Biowatti) were down by
5.3% to EUR 7.2 million (EUR 7.6 million). Operating loss amounted to EUR 1.1
million (a loss of EUR 1.4 million), and operating loss excluding non-recurring
items was EUR 1.1 million (a loss of EUR 1.4 million).
Demand for wood-based fuels remained weak due to intense competition. The warm
autumn and extended maintenance shutdowns at power plants restricted demand.
A fixed cost cut regime helped decrease the division's losses from the
comparison period, although profitability was negatively affected by the
weakened demand, higher subcontracting costs and the EUR 0.2 million credit
loss recorded for the period. During the quarter, several new contracts were
signed for future heating seasons.
January-September
January-September net sales of Renewable Energy Sources (L&T Biowatti) were
down by 17.6% to EUR 32.8 million (EUR 39.8 million). Operating loss amounted
to EUR 3.1 million (a loss of EUR 6.2 million), and operating loss excluding
non-recurring items was EUR 2.7 million (a loss of EUR 3.2 million).
The competitiveness of wood-based fuels in January-September was weak. In the
first half of the year, power plant customers did not receive any subsidy for
electricity generation from forest processed chips. As a result, several power
plants replaced forest processed chips with fossil fuels. Furthermore, warm
weather in the early autumn curbed demand for forest processed chips. Besides
lower demand, profitability in the first half was also eroded by higher
collection and logistics costs.
A reorganisation programme involving fixed cost cuts and operational efficiency
enhancement measures was launched in the first half to improve the division's
competitiveness.
In the comparison period, the non-recurring costs of EUR 3.0 million related to
the discontinuation of the pellet business reduced operating profit.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Operating profit 18.2 16.3 33.5 31.7 40.2
Non-recurring items:
Discontinuation of wood pellet production of L&T 0.1 3.0 3.4
Biowatti
Discontinuation of cleaning business in Moscow 0.2 0.2 0.4
Restructuring costs 0.3 1.1 1.5 1.5
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items 18.2 16.8 34.7 36.4 45.5
--------------------------------------------------------------------------------
FINANCING
Cash flows from operating activities amounted to EUR 45.2 million (EUR 42.9
million). EUR 9.4 million was tied up in the working capital (EUR 8.2 million).
At the end of the period, interest-bearing liabilities amounted to EUR 153.6
million (EUR 133.2 million). Net interest-bearing liabilities amounted to EUR
141.7 million, showing an increase of EUR 29.4 million from the beginning of
the year.
Net finance costs in January-September amounted to EUR 3.5 million (EUR 3.2
million). Net finance costs were 0.7% (0.7%) of net sales. Long-term loans
totalling EUR 7.6 million will mature during the rest of the year. The average
interest rate on long-term loans (with interest-rate hedging) was 3.1% (3.2%).
The equity ratio was 43.4% (45.6%) and the gearing rate 63.5 (55.2). Liquid
assets at the end of the period amounted to EUR 12.0 million (EUR 13.4
million).
The commercial paper programme was expanded to EUR 100 million (previously EUR
50 million) during the third quarter. Of the commercial paper programme, EUR 27
million (EUR 6.0 million) was in use. The EUR 15.0 million committed limit was
not in use, as was the case in the comparison period.
DIVIDEND
The Annual General Meeting held on 17 March 2011 resolved on a dividend of EUR
0.55 per share. The dividend, totalling EUR 21.3 million, was paid to the
shareholders on 29 March 2011.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 55.7 million (EUR 26.9 million), about half of
this consisting of acquisitions. Some equipment purchases were also made.
In the first quarter, Pentti Laurila Ky and businesses of Matti Hossi Ky and
PPT Luttinen Oy were acquired into Environmental Services. The business of
Kestosiivous Oy was acquired into Cleaning and Office Support Services and the
business of KH-Kiinteistöhuolto Oy was acquired into Property Maintenance.
In the second quarter, the Environmental Services division acquired Papros Oy
and Full House Oy. The Cleaning and Office Support Services division acquired
Savon Kiinteistöhuolto- ja Siivouspalvelu Oy, Varkauden Kiinteistönhoito ja
Siivouspalvelu Oy, Jo-Pe Huolto Oy, Östgöta Städ Ab and WTS-Palvelut Oy. The
Cleaning and Office Support Services and the Property Maintenance divisions
acquired the Hansalaiset Oy group including its subsidiaries.
No acquisitions were made in the third quarter. After the period, the
Environmental Services division acquired Paraisten Puhtaanapito Oy.
PERSONNEL
In January-September, the average number of employees converted into full-time
equivalents was 8,614 (7,798). The total number of full-time and part-time
employees at the end of the period was 9,648 (8,550). Of them 7,565 (6,855)
people worked in Finland and 2,083 (1,695) people in other countries.
SHARE AND SHARE CAPITAL
Traded volume and price
The volume of trading excluding the shares held by the company in Lassila &
Tikanoja plc shares on NASDAQ OMX Helsinki in January-September was 7,696,885
which is 19.9% (12.8%) of the average number of outstanding shares. The value
of trading was EUR 94.8 million (EUR 71.8 million). The trading price varied
between EUR 9.49 and EUR 15.18. The closing price was EUR 10.55. At the end of
the period, the company held 113,305 of its own shares. The market
capitalisation excluding the shares held by the company was EUR 408.1 million
(EUR 538.1 million) at the end of the period.
Own shares
At the end of the period, the company held 113,305 of its own shares,
representing 0.3% of all shares and votes. Based on the authorisation given by
the Annual General Meeting 2010, the company repurchased 50,000 shares in the
period from 12 September to 23 September 2011 at a total acquisition cost of
EUR 0.5 million. On 5 April 2011, a total of 2,547 shares of Lassila & Tikanoja
plc were returned to the company free of consideration, by virtue of the terms
of the share-based incentive programme of 2009.
Share capital and number of shares
The company's registered share capital amounts to EUR 19,399,437, and the
number of outstanding shares to 38,685,569 shares. The average number of shares
excluding the shares held by the company totalled 38,734,155.
Share option scheme 2005
In 2005, 600,000 share option rights were issued. The exercise period for the
2005A options ended on 29 May 2009, for the 2005B options on 31 May 2010 and
for the 2005C options on 31 May 2011.
Share option scheme 2008
In 2008, 230,000 share option rights were issued, each entitling its holder to
subscribe for one share of Lassila & Tikanoja plc. 33 key persons hold 168,000
options and L&T Advance Oy 62,000 options.
The exercise price is EUR 16.20. It was reduced by EUR 0.07 as of 22 March
2011. The exercise price of the share options shall, as per the dividend record
date, be reduced by the amount of dividend which exceeds 70% of the profit per
share for the financial period to which the dividend applies. However, only
such dividends whose distribution has been agreed upon after the option pricing
period and which have been distributed prior to the share subscription are
deducted from the subscription price. The exercise price shall, however, always
amount to at least EUR 0.01. The exercise period is from 1 November 2010 to 31
May 2012.
As a result of the exercise of the outstanding 2008 share options, the number
of shares may increase by a maximum of 168,000 new shares, which is 0.4% of the
current number of shares. The 2008 options have been listed on NASDAQ OMX
Helsinki since 1 November 2010.
Share-based incentive programme
Lassila & Tikanoja plc's Board of Directors decided on 24 March 2009 on a
share-based incentive programme. The programme includes three earnings periods
one year each, of which the first one began on 1 January 2009 and the last one
ends on 31 December 2011. The basis for the determination of the reward is
decided annually. Rewards to be paid for the year 2011 will be based on the EVA
result of Lassila & Tikanoja group. They will be paid partly as shares and
partly in cash. The proportion paid in cash will cover taxes arising from the
reward. The programme covers 23 persons.
A maximum total of 180,000 Lassila & Tikanoja plc shares may be paid out on the
basis of the programme. The shares will be obtained in public trading.
Shareholders
At the end of the financial period, the company had 9,489 (8,890) shareholders.
Nominee-registered holdings accounted for 13.3% (10.3%) of the total number of
shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 31 March 2010 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 and on the issuance of these
shares.
The Board of Directors is authorised to transfer a maximum of 500,000 company
shares, which is 1.3% of the total number of shares. The share issue
authorisation will be effective for four years and it revokes the authorisation
to issue shares issued by the Annual General Meeting 2009. The authorisation
for the repurchase of the company's own shares has ended.
The Board of Directors is not authorised to launch a convertible bond or share
option rights.
RESOLUTIONS BY THE GENERAL MEETINGS
The Extraordinary General Meeting of Lassila & Tikanoja plc, which was held on
8 September 2011, resolved on decreasing the share premium reserve of the
balance sheet at 31 December 2010 by EUR 50,672,564.52 by transferring all the
funds in the share premium reserve to the unrestricted equity reserve. The
resolutions of the Extraordinary General Meeting were announced in more detail
in a stock exchange release on 8 September 2011.
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 17
March 2011, adopted the financial statements for the financial year 2010 and
released the members of the Board of Directors and the President and CEO from
liability. The AGM resolved that a dividend of EUR 0.55 per share, a total of
EUR 21.3 million, as proposed by the Board of Directors, be paid for the
financial year 2010. The dividend payment date was resolved to be 29 March
2011.
The Annual General Meeting confirmed the number of the members of the Board of
Directors six. The following Board members were re-elected to the Board until
the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Matti Kavetvuo,
Hille Korhonen and Miikka Maijala. Sakari Lassila was elected as a new member
for the same term.
PricewaterhouseCoopers Oy, Authorised Public Accountants, was elected auditor.
The resolutions of the Annual General Meeting were announced in more detail in
a stock exchange release on 17 March 2011.
BOARD OF DIRECTORS
The members of the Board of Directors are Heikki Bergholm, Eero Hautaniemi,
Matti Kavetvuo, Hille Korhonen, Sakari Lassila and Miikka Maijala. In its
constitutive meeting the Board elected Heikki Bergholm as Chairman of the Board
and Matti Kavetvuo as Vice Chairman.
From among its members, the Board elected Eero Hautaniemi as Chairman and
Sakari Lassila and Miikka Maijala as members of the audit committee. Heikki
Bergholm was elected as Chairman of the remuneration committee and Matti
Kavetvuo and Hille Korhonen as members of the committee.
CHANGES IN THE MANAGEMENT OF THE COMPANY
The Board of Directors of Lassila & Tikanoja plc has appointed Pekka Ojanpää as
President and CEO of the company. Mr Ojanpää will assume his position as
Lassila & Tikanoja's President and CEO on 13 December 2011 at the latest. Ville
Rantala, CFO of Lassila & Tikanoja, has been appointed as acting President and
CEO as of 13 June.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 7, CHAPTER 2 OF THE
SECURITIES MARKETS ACT
In a release published on 22 March 2011, the company announced that M.Sc.
(Econ.) Ville Rantala has been appointed as Managing Director of L&T Biowatti
Oy and Vice President, Renewable Energy Sources division, as of 22 March 2011.
Rantala will also continue as CFO of Lassila & Tikanoja plc. Tomi Salo,
Managing Director of L&T Biowatti, will not continue in the company.
In a release published on 5 April 2011, the company announced that a total of
2,547 shares of Lassila & Tikanoja plc have been returned to the company free
of consideration, by virtue of the terms of the share-based incentive programme
of 2009.
In a release published on 13 June 2011, the company announced that the Board of
Directors of Lassila & Tikanoja plc has appointed Pekka Ojanpää as President
and CEO. Pekka Ojanpää acts as President of Kemira's Municipal & Industrial
segment. He previously worked as President of the Kemira Performance Chemicals
business area, and has held various executive positions at Nokia Corporation.
Mr Ojanpää will assume his position as Lassila & Tikanoja's President and CEO
on 13 December 2011 at the latest. The Board of Directors and Jari Sarjo,
former President and CEO, agreed that Sarjo will leave his position as
President and CEO immediately. Ville Rantala, CFO of Lassila & Tikanoja, was
appointed as acting President and CEO as of 13 June.
NEAR-TERM UNCERTAINTIES
Economic uncertainty may cause radical price changes in the Environmental
Services division's secondary raw material markets.
Any disturbances in L&T Recoil plant's production could have a negative effect
on the Environmental Services division's performance. End-product and raw
material price fluctuations would also have a major effect on L&T Recoil's
performance.
The situation regarding government subsidies to renewable fuels continues to be
unclear. Changes in the prices of emission rights will affect the
competitiveness of L&T Biowatti's wood-based fuels in heat generation.
More detailed information on L&T's risks and risk management is available in
the Annual Report, in the report of the Board of Directors, and in the
consolidated financial statements.
PROSPECTS FOR THE REST OF THE YEAR
In the Environmental Services division, the outlook for the remainder of the
year is largely stable. The secondary raw material price development and the
operational reliability of L&T Recoil's plant will affect the division's
profitability for the remainder of the year.
The outlook for Cleaning and Office Support Services and for Property
Maintenance is stable for the remainder of the year.
Demand for L&T Biowatti's wood-based fuels is expected to reach the comparison
period's level.
Full-year net sales will grow slightly from 2010 and operating profit excluding
non-recurring items is expected to remain at the 2010 level.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-30 SEPTEMBER 2011
CONSOLIDATED INCOME STATEMENT
EUR 1000 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2011 2010 2011 2010 2010
-------------------------------------------------------------------------------
Net sales 163 469 143 770 485 129 446 686 598 193
Cost of sales -139 720 -122 237 -432 446 -393 305 -531 066
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Gross profit 23 749 21 533 52 683 53 381 67 127
Other operating income 442 49 2 012 1 070 2 708
Selling and marketing costs -3 276 -3 036 -11 291 -9 975 -13 779
Administrative expenses -2 252 -2 316 -8 590 -8 259 -10 519
Other operating expenses -484 45 -1 311 -1 919 -2 686
Impairment -2 632 -2 632
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Operating profit 18 179 16 275 33 503 31 666 40 219
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Finance income 72 82 712 730 1 053
Finance costs -1 349 -1 354 -4 216 -3 972 -5 282
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Profit before tax 16 902 15 003 29 999 28 424 35 990
Income tax expense -4 345 -3 975 -6 170 -7 532 -9 786
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Profit for the period 12 557 11 028 23 829 20 892 26 204
Attributable to:
Equity holders of the company 12 555 11 025 23 825 20 878 26 188
Non-controlling interest 2 3 4 14 16
Earnings per share for profit attributable to the equity holders of the company:
Basic earnings per share, EUR 0.32 0.28 0.62 0.54 0.68
Diluted earnings per share, EUR 0.32 0.28 0.61 0.54 0.68
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1000 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2011 2010 2011 2010 2010
------------------------------------------------------------------------------
Profit for the period 12 557 11 028 23 829 20 892 26 204
Other comprehensive income, after tax
Hedging reserve, change in fair value -1 191 136 -1 415 -90 223
Current available-for-sale investments
Gains in the period 13 1 9 -55 -58
Current available-for-sale investments 13 1 9 -55 -58
------------------------------------------------------------------------------
Currency translation differences -595 -603 -552 549 792
------------------------------------------------------------------------------
Other comprehensive income, after tax -1 773 -466 -1 958 404 957
------------------------------------------------------------------------------
Total comprehensive income, after tax 10 784 10 562 21 871 21 296 27 161
Attributable to:
Equity holders of the company 10 801 10 583 21 885 21 274 27 130
Non-controlling interest -17 -21 -14 22 31
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1000 9/2011 9/2010 12/2010
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ASSETS
Non-current assets
Intangible assets
Goodwill 123 497 113 056 113 467
Customer contracts arising from acquisitions 11 167 5 027 4 736
Agreements on prohibition of competition 11 314 10 301 10 023
Other intangible assets arising from business 84 1 721 1 229
acquisitions
Other intangible assets 12 444 13 236 13 226
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158 506 143 341 142 681
Property, plant and equipment
Land 4 926 4 709 4 671
Buildings and constructions 79 013 71 687 78 908
Machinery and equipment 117 424 103 649 111 733
Other 83 84 85
Prepayments and construction in progress 4 994 18 344 5 303
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206 440 198 473 200 700
Other non-current assets
Available-for-sale investments 589 525 598
Finance lease receivables 3 367 3 673 3 547
Deferred tax assets 4 940 2 894 3 924
Other receivables 3 282 491 3 401
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12 178 7 583 11 470
Total non-current assets 377 124 349 397 354 851
Current assets
Inventories 27 516 27 973 27 957
Trade and other receivables 101 155 90 277 85 662
Derivative receivables 525 407
Prepayments 2 496 1 851 317
Available-for-sale investments 6 294 6 492 9 895
Cash and cash equivalents 5 656 6 878 4 653
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Total current assets 143 642 133 471 128 891
TOTAL ASSETS 520 766 482 868 483 742
EUR 1000 9/2011 9/2010 12/2010
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EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the company
Share capital 19 399 19 399 19 399
Share premium reserve 50 673 50 673 50 673
Other reserves -4 029 -2 688 -2 141
Unrestricted equity reserve -15
Retained earnings 133 076 128 591 128 597
Profit for the period 23 825 20 878 26 188
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222 929 216 853 222 716
Non-controlling interest 264 269 278
-------------------------------------------------------------------------------
Total equity 223 193 217 122 222 994
Liabilities
Non-current liabilities
Deferred tax liabilities 32 135 32 478 33 718
Retirement benefit obligations 664 606 615
Provisions 2 723 2 446 2 748
Borrowings 100 858 104 888 95 563
Other liabilities 1 001 1 247 364
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137 381 141 665 133 008
Current liabilities
Borrowings 52 767 28 359 31 261
Trade and other payables 103 981 93 462 94 891
Derivative liabilities 3 075 1 195 1 173
Tax liabilities 59 1 065 15
Provisions 310 400
160 192 124 081 127 740
-------------------------------------------------------------------------------
Total liabilities 297 573 265 746 260 748
TOTAL EQUITY AND LIABILITIES 520 766 482 868 483 742
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1000 9/2011 9/2010 12/2010
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 23 829 20 892 26 204
Adjustments
Income tax expense 6 170 7 532 9 786
Depreciation, amortisation and impairment 33 154 33 615 43 937
Finance income and costs 3 504 3 242 4 229
Other -399 273 1 570
--------------------------------------------------------------------------------
Net cash generated from operating activities before 66 258 65 554 85 726
change in working capital
Change in working capital
Change in trade and other receivables -19 233 -11 780 -6 118
Change in inventories 446 4 858 4 874
Change in trade and other payables 9 377 -1 286 -918
--------------------------------------------------------------------------------
Change in working capital -9 410 -8 208 -2 162
Interest paid -4 432 -3 026 -5 409
Interest received 691 642 914
Income tax paid -7 938 -12 105 -15 259
--------------------------------------------------------------------------------
Net cash from operating activities 45 169 42 857 63 810
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of -23 546 -748 -1 655
cash acquired
Proceeds from sale of subsidiaries and businesses, 199 199
net of sold cash
Purchases of property, plant and equipment and -31 468 -25 874 -36 003
intangible assets
Proceeds from sale of property, plant and equipment 1 802 2 823 3 655
and intangible assets
Purchases of available-for-sale investments -2 -74
Change in other non-current receivables 127 237 -2 673
Dividends received 1 1
--------------------------------------------------------------------------------
Net cash used in investing activities -53 085 -23 364 -36 550
Cash flows from financing activities
Change in short-term borrowings 19 166 3 389 5 091
Proceeds from long-term borrowings 20 000
Repayments of long-term borrowings -11 945 -14 863 -23 166
Dividends paid -21 284 -21 301 -21 301
Repurchase of own shares -517 -1 125 -1 125
--------------------------------------------------------------------------------
Net cash generated from financing activities 5 420 -33 900 -40 501
EUR 1000 9/2011 9/2010 12/2010
---------------------------------------------------------------------
Net change in liquid assets -2 496 -14 407 -13 241
Liquid assets at beginning of period 14 548 27 583 27 583
Effect of changes in foreign exchange rates -102 194 206
Liquid assets at end of period 11 950 13 370 14 548
---------------------------------------------------------------------
Liquid assets
EUR 1000 9/2011 9/2010 12/2010
---------------------------------------------------------------------
Cash and cash equivalents 5 656 6 878 4 653
Money market investments 6 294 6 492 9 895
---------------------------------------------------------------------
Total 11 950 13 370 14 548
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR 1000 Share Share Revaluation
Unrest Retained Equity Non- Total
capital premium and other
ricted earnings attributable controlling equity
reserve reserves
equity to equity interest
reserv holders
e of the company
--------------------------------------------------------------------------------
--------------------------------------------------
Equity at 1.1.2011 19 399 50 673 -2 141
0 154 785 222 716 278 222 994
Expense recognition of share-based benefits
135 135 135
Repurchase of own shares
-554 -554 -554
Dividends paid
-21 290 -21 290 -21 290
Transfer from revaluation reserve 52
-15 37 37 37
Total comprehensive income -1 940
23 825 21 885 -14 21 871
--------------------------------------------------------------------------------
--------------------------------------------------
Equity at 30.9.2011 19 399 50 673 -4 029
-15 156 938 222 929 264 223 193
Equity at 1.1.2010 19 399 50 673 -3 084
0 150 014 217 002 247 217 249
Expense recognition of share-based benefits
379 379 379
Repurchase of own shares
-489 -489 -489
Dividends paid
-21 313 -21 313 -21 313
Total comprehensive income 396
20 878 21 274 22 21 296
--------------------------------------------------------------------------------
--------------------------------------------------
Equity at 30.9.2010 19 399 50 673 -2 688
0 149 469 216 853 269 217 122
KEY FIGURES
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Earnings per share, EUR 0.32 0.28 0.62 0.54 0.68
Earnings per share, diluted, EUR 0.32 0.28 0.61 0.54 0.68
Cash flows from operating activities 0.36 0.34 1.17 1.11 1.65
per share, EUR
EVA, EUR million 11.0 8.8 12.7 8.9 10.1
Capital expenditure, EUR 1000 10 594 10 782 55 697 26 863 39 321
Depreciation, amortisation and 11 331 10 593 33 154 33 615 43 937
impairment, EUR 1000
Equity per share, EUR 5.76 5.60 5.75
Return on equity, ROE, % 14.2 12.8 11.9
Return on invested capital, ROI, % 12.6 12.1 11.6
Equity ratio, % 43.4 45.6 46.5
Gearing, % 63.5 55.2 50.3
Net interest-bearing liabilities, EUR 141 676 119 878 112 277
1000
Average number of employees in 8 614 7 798 7 835
full-time equivalents
Total number of full-time and 9 648 8 550 8 732
part-time employees at end of period
Number of outstanding shares adjusted for
issues, 1000 shares
average during the period 38 734 38 752 38 749
at end of period 38 686 38 738 38 738
average during the period, diluted 38 761 38 766 38 773
ACCOUNTING POLICIES
This interim report is in compliance with IAS 34 Interim Financial Reporting
standard. The same accounting policies as in the annual financial statements
for the year 2010 have been applied. This interim report has been prepared in
accordance with the IFRS standards and interpretations as adopted by the EU.
The following amendments to standards that have become effective in 2010 have
had an impact on the interim report:
IFRS 3 (revised) Business Combinations
The revised standard continues to apply the acquisition method to business
combinations, with some significant changes. For example, all payments to
purchase a business are to be recorded at fair value at the acquisition date,
with contingent payments classified as debt subsequently re-measured through
the income statement. There is a choice on an acquisition-by-acquisition basis
to measure the non-controlling interest in the acquiree at fair value or at the
non-controlling interest's proportionate share of the acquiree's net assets.
All acquisition-related costs should be expensed.
The preparation of financial statements in accordance with IFRS require the
management to make such estimates and assumptions that affect the carrying
amounts at the balance sheet date for the assets and liabilities and the
amounts of revenues and expenses. Judgements are also made in applying the
accounting policies. Actual results may differ from the estimates and
assumptions.
The interim report has not been audited.
SEGMENT INFORMATION
Net sales
7-9/2011
7-9/2010
EUR 1000 External Inter- Total External
Inter- Total Total net sales,
division
division change %
--------------------------------------------------------------------------------
--------------------------------
Environmental Services 85 140 766 85 906 75 141
665 75 806 13.3
Cleaning and Office Support Services 41 122 408 41 530 35 364
295 35 659 16.5
Property Maintenance 30 962 360 31 322 26 481
445 26 926 16.3
Renewable Energy Sources 6 245 968 7 213 6 784
833 7 617 -5.3
Eliminations -2 502 -2 502
-2 238 -2 238
--------------------------------------------------------------------------------
--------------------------------
L&T total 163 469 0 163 469 143 770
0 143 770 13.7
1-9/2011
1-9/2010
EUR 1000 External Inter- Total External
Inter- Total Total net sales,
division
division change %
--------------------------------------------------------------------------------
--------------------------------
Environmental Services 239 304 2 566 241 870 213 240
2 799 216 039 12.0
Cleaning and Office Support Services 116 089 1 081 117 170 105 140
895 106 035 10.5
Property Maintenance 99 498 1 642 101 140 90 736
1 137 91 873 10.1
Renewable Energy Sources 30 238 2 586 32 824 37 570
2 270 39 840 -17.6
Eliminations -7 875 -7 875
-7 101 -7 101
--------------------------------------------------------------------------------
--------------------------------
L&T total 485 129 0 485 129 446 686
0 446 686 8.6
1-12/2010
EUR 1000 External Inter-division Total
-----------------------------------------------------------------------
Environmental Services 286 260 3 771 290 031
Cleaning and Office Support Services 139 399 1 216 140 615
Property Maintenance 121 546 1 923 123 469
Renewable Energy Sources 50 988 4 118 55 106
Eliminations -11 028 -11 028
-----------------------------------------------------------------------
L&T total 598 193 0 598 193
Operating profit
EUR 7-9/ % 7-9/ % 1-9/ % 1-9/ % 1-12/ %
1000 2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Enviro 12 308 14.3 10 930 14.4 25 665 10.6 25 470 11.8 33 674 11.6
nmenta
l
Servi
ces
Cleani 3 718 9.0 4 088 11.5 6 194 5.3 7 343 6.9 7 524 5.4
ng and
Offic
e
Suppo
rt
Servi
ces
Proper 3 582 11.4 3 263 12.1 6 253 6.2 7 131 7.8 7 764 6.3
ty
Maint
enance
Renewa -1 085 -15.0 -1 432 -18.8 -3 061 -9.3 -6 192 -15.5 -6 553 -11.9
ble
Energ
y
Sourc
es
Group -344 -574 -1 548 -2 086 -2 190
admin
. and
other
--------------------------------------------------------------------------------
L&T 18 179 11.1 16 275 11.3 33 503 6.9 31 666 7.1 40 219 6.7
total
Financ -1 277 -1 272 -3 504 -3 242 -4 229
e
costs
, net
--------------------------------------------------------------------------------
Profit 16 902 15 003 29 999 28 424 35 990
befor
e tax
Other segment information
EUR 1000 9/2011 9/2010 12/2010
--------------------------------------------------------------------------------
Assets
Environmental Services 352 978 340 606 330 963
Cleaning and Office Support 54 838 40 019 39 007
Services
Property Maintenance 44 267 34 173 38 098
Renewable Energy Sources 44 410 48 458 49 113
Group admin. and other 2 057 390 1 902
Unallocated assets 22 216 19 222 24 659
--------------------------------------------------------------------------------
L&T total 520 766 482 868 483 742
Liabilities
Environmental Services 57 031 55 215 50 300
Cleaning and Office Support 28 213 23 626 25 654
Services
Property Maintenance 15 961 12 273 15 784
Renewable Energy Sources 5 047 3 972 4 835
Group admin. and other 1 253 1 267 1 193
Unallocated liabilities 190 068 169 393 162 982
--------------------------------------------------------------------------------
L&T total 297 573 265 746 260 748
EUR 1000 7-9/2011 7-9/2010 1-9/2011 1-9/2010 1-12/201
0
--------------------------------------------------------------------------------
Capital expenditure
Environmental Services 7 604 9 862 33 264 22 402 31 409
Cleaning and Office Support 732 398 14 092 1 298 2 112
Services
Property Maintenance 2 105 385 7 769 2 634 5 074
Renewable Energy Sources 118 110 409 338 654
Group admin. and other 35 27 163 191 72
--------------------------------------------------------------------------------
L&T total 10 594 10 782 55 697 26 863 39 321
Depreciation and amortisation
Environmental Services 7 896 7 400 22 895 21 417 28 558
Cleaning and Office Support 1 341 1 003 3 574 3 043 4 023
Services
Property Maintenance 1 261 1 008 3 518 2 992 4 017
Renewable Energy Sources 827 1 182 3 161 3 526 4 702
Group admin. and other 6 6 5 5
--------------------------------------------------------------------------------
L&T total 11 331 10 593 33 154 30 983 41 305
Impairment
Renewable Energy Sources 2 632 2 632
--------------------------------------------------------------------------------
L&T total 2 632 2 632
INCOME STATEMENT BY QUARTER
EUR 1000 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/ 10-12/
2011 2011 2011 2010 2010 2010 2010 2009
--------------------------------------------------------------------------------
Net
sales
Environm 85 906 83 535 72 429 73 992 75 806 75 624 64 609 71 178
ental
Service
s
Cleaning 41 530 40 784 34 856 34 580 35 659 35 710 34 666 35 686
and
Office
Support
Service
s
Property 31 322 30 879 38 939 31 596 26 926 28 090 36 857 25 829
Mainten
ance
Renewabl 7 213 9 600 16 011 15 266 7 617 12 097 20 126 17 702
e Energy
Sources
Inter-di -2 502 -2 612 -2 761 -3 927 -2 238 -2 507 -2 356 -2 354
vision
net
sales
--------------------------------------------------------------------------------
L&T 163 469 162 186 159 474 151 507 143 770 149 014 153 902 148 041
total
Operatin
g profit
Environm 12 308 9 182 4 175 8 204 10 930 10 124 4 416 6 793
ental
Service
s
Cleaning 3 718 1 001 1 475 181 4 088 2 218 1 037 1 697
and
Office
Support
Service
s
Property 3 582 769 1 902 633 3 263 1 075 2 793 1 070
Mainten
ance
Renewabl -1 085 -1 325 -651 -361 -1 432 -3 900 -860 -321
e Energy
Sources
Group -344 -767 -437 -104 -574 -762 -750 -735
admin.
and
other
--------------------------------------------------------------------------------
L&T 18 179 8 860 6 464 8 553 16 275 8 755 6 636 8 504
total
Operatin
g margin
Environm 14.3 11.0 5.8 11.1 14.4 13.4 6.8 9.5
ental
Service
s
Cleaning 9.0 2.5 4.2 0.5 11.5 6.2 3.0 4.8
and
Office
Support
Service
s
Property 11.4 2.5 4.9 2.0 12.1 3.8 7.6 4.1
Mainten
ance
Renewabl -15.0 -13.8 -4.1 -2.4 -18.8 -32.2 -4.3 -1.8
e Energy
Sources
--------------------------------------------------------------------------------
L&T 11.1 5.5 4.1 5.6 11.3 5.9 4.3 5.7
total
Finance -1 277 -1 163 -1 064 -987 -1 272 -917 -1 053 -1 078
costs,
net
Profit 16 902 7 697 5 400 7 566 15 003 7 838 5 583 7 426
before
tax
--------------------------------------------------------------------------------
BUSINESS ACQUISITIONS
Business combinations in aggregate
Consideration
EUR 1000
Fair
values
used
in
consol idatio
n
--------------------------------------------------------------------------------
------------------------------------
Cash
25 599
Equity instruments
Contingent consideration
1 100
--------------------------------------------------------------------------------
------------------------------------
Total consideration transferred
26 699
Indemnification asset
Fair value of equity interest held before the acquisition
Total consideration
26 699
--------------------------------------------------------------------------------
------------------------------------
Acquisition-related costs (included in the administrative expenses in the
consolidated financial statements) 27
Recognised amounts of identifiable assets acquired and liabilities assumed
EUR 1000 Fair values used in consolidation
---------------------------------------------------------------------------
Property, plant and equipment 3 884
Customer contracts 8 695
Agreements on prohibition of competition 3 308
Other intangible assets 266
Inventories 395
Trade and other receivables 5 375
Cash and cash equivalents 3 160
Total assets 25 083
---------------------------------------------------------------------------
Deferred tax liabilities 734
Trade and other payables 7 839
---------------------------------------------------------------------------
Total liabilities 8 573
Total identifiable net assets 16 510
Non-controlling interest
Goodwill 10 224
---------------------------------------------------------------------------
Total 26 734
Acquisitions by Environmental Services
-- 4 January 2011, Pentti Laurila Ky, an environmental management business
operating in the Keuruu and Multiala region in central Finland
-- 1 February 2011, the Ypäjä-based Matti Hossi Ky, a waste management and
interchangeable platform business
-- 1 March 2011, the PPT Luttinen Oy waste management business
-- 1 May 2011, Papros Oy, an environmental management company, and Full House
Oy, a company specialising in the provision of environmental management
services, both operating in the Helsinki region and
-- 1 October 2011, after the period, Paraisten Puhtaanapito Oy, a company
providing waste management, recycling and wastewater services.
Acquisitions by Cleaning and Office Support Services
-- 1 January 2011, Kestosiivous Oy, a cleaning company operating in the
Helsinki region
-- 1 April 2011, the cleaning and property maintenance businesses of
Varkaus-based Savon Kiinteistöhuolto- ja Siivouspalvelu Oy, Varkauden
Kiinteistönhoito ja Siivouspalvelu Oy and Jo-Pe Huolto Oy
-- 1 May 2011, Östgöta Städ Ab in Sweden, a cleaning service provider
-- 1 June 2011, WTS-Palvelut Oy, a cleaning company operating in the Tampere
region.
Acquisitions by Cleaning and Office Support Services and Property Maintenance
-- 1 April 2011, the Hansalaiset Oy group, including its subsidiaries,
providing cleaning and property maintenance services in the Helsinki,
Turku, Tampere and Oulu regions.
Acquisitions by Property Maintenance
-- 1 March 2011, the operations of KH-Kiinteistöhuolto Oy operating in the
Nurmijärvi region.
The figures for these acquired businesses are stated in aggregate, because none
of them is of material importance when considered separately. Fair values have
been determined as of the time the acquisition was realised. No business
operations have been divested as a consequence of any acquisition. All
acquisitions have been paid for in cash. With share acquisitions, L&T was able
to gain 100% of the voting rights. The conditional consideration is tied to the
transfer of the customer contracts to Lassila & Tikanoja plc, and the estimates
of the fair values of considerations were determined on the basis of
probability-weighted final acquisition price. The estimates for the conditional
consideration have changed by EUR 30 thousand between the time of acquisition
and the balance sheet date. Trade and other receivables have been recorded at
fair value at the time of acquisition. Individual acquisition prices have not
been itemised because none of them is of material importance when considered
separately.
By annual net sales, the largest acquisition was Hansalaiset Oy (EUR 10,973
thousand).
It is not possible to itemise the effects of the acquired businesses on the
consolidated net sales and profit for the period, because L&T integrates its
acquisitions into the current business operations as quickly as possible to
gain synergy benefits.
The accounting policy concerning business combinations is presented in Annual
Report under Note 2 of the consolidated financial statements and under Summary
on significant accounting policies.
CHANGES IN INTANGIBLE ASSETS
EUR 1000 1-9/2011 1-9/2010 1-12/2010
---------------------------------------------------------------------
Carrying amount at beginning of period 142 681 148 417 148 417
Business acquisitions 22 227 476 1 175
Other capital expenditure 2 040 2 078 2 944
Disposals -7 -1 718 -1 760
Amortisation and impairment -8 243 -6 838 -9 134
Transfers between items -4 -4
Exchange differences -192 930 1 043
---------------------------------------------------------------------
Carrying amount at end of period 158 506 143 341 142 681
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1000 1-9/2011 1-9/2010 1-12/2010
---------------------------------------------------------------------
Carrying amount at beginning of period 200 700 201 651 201 651
Business acquisitions 4 028 272 500
Other capital expenditure 27 402 24 035 34 628
Disposals -404 -1 001 -1 711
Depreciation and impairment -24 911 -26 777 -34 803
Transfers between items 4 4
Exchange differences -375 289 431
---------------------------------------------------------------------
Carrying amount at end of period 206 440 198 473 200 700
CAPITAL COMMITMENTS
EUR 1000 1-9/2011 1-9/2010 1-12/2010
-----------------------------------------------------------------------
Intangible assets 140
Property, plant and equipment 4 862 4 281 5 106
-----------------------------------------------------------------------
Total 4 862 4 421 5 106
The Group's share of capital commitments 150 100
of joint ventures
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1000 1-9/2011 1-9/2010 1-12/2010
------------------------------------------------------
Sales 1 893 1 767 2 332
Other operating income 50 55 74
Interest income 512 330 505
Non-current receivables
Capital loan receivable 23 146 19 146 20 646
Current receivables
Trade receivables 2 408 635 2 375
Loan receivables 1 471 868 1 034
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1000 9/2011 9/2010 12/2010
---------------------------------------------------------------------------
Mortgages on rights of tenancy 42 186 42 179 42 179
Company mortgages 21 460 21 460 21 460
Other securities 197 233 222
Bank guarantees required for environmental permits 5 649 3 788 4 634
Other securities are security deposits.
The Group has given no pledges, mortgages or guarantees on behalf of outsiders.
Operating lease liabilities
EUR 1000 9/2011 9/2010 12/2010
--------------------------------------------------------------------------------
Maturity not later than one year 7 815 8 621 8 087
Maturity later than one year and not later than five 17 662 19 272 20 087
years
Maturity later than five years 4 280 4 938 4 509
--------------------------------------------------------------------------------
Total 29 757 32 831 32 683
Liabilities associated with derivative agreements
Interest rate and currency swaps
EUR 1000 9/2011 9/2010 12/2010
--------------------------------------------------------------------------------
Nominal values of interest rate and currency swaps
Maturity not later than one year 17 304 5 329 11 010
Maturity later than one year and not later than five 58 986 27 057 49 355
years
Maturity later than five years 267
--------------------------------------------------------------------------------
Total 76 290 32 386 60 632
Fair value -3 074 -1 195 -1 173
The interest rate and currency swaps are used to hedge cash flow related to a
floating rate loan, and hedge accounting under IAS 39 has been applied to it.
The hedges have been effective, and the changes in the fair values are shown in
the consolidated statement of comprehensive income for the period. On the
balance sheet date, the value of foreign currency loans was EUR 1.7 million
positive. The fair values of the swap contracts are based on the market data at
the balance sheet date.
Commodity derivatives
metric tons 9/2011 9/2010
12/2010
--------------------------------------------------------------------------------
---
Nominal values of diesel swaps
Maturity not later than one year 3 807 7
596
Maturity later than one year and not later than five years 636 2
544
--------------------------------------------------------------------------------
---
Total 4 443 10
140
Fair value, EUR 1000 443
400
Commodity derivative contracts were concluded, for hedging of future diesel oil
purchases. IAS39-compliant hedge accounting will be applied to these contracts,
and the effective change in fair value will be recognised in the hedging
reserve within equity. The fair values of commodity derivatives are based on
market prices at the balance sheet date.
Currency derivatives
EUR 1000 9/2011 9/2010 12/2010
---------------------------------------------------------
Volume of forward contracts
Maturity not later than one year 196
Fair value 7
Hedge accounting under IAS 39 has not been applied to forward contracts.
Changes in fair values have been recognised in finance income and costs.
CALCULATION OF KEY FIGURES
Earnings per share:
profit attributable to equity holders of the parent company / adjusted average
basic number of shares
Earnings per share, diluted:
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 number of shares
EVA:
operating profit - cost calculated on invested capital (average of four
quarters)
WACC 2010: 8.7%
WACC 2011: 7.7%
Equity per share:
equity 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 investment, % (ROI):
(profit before tax + finance costs) / (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, 24 October 2011
LASSILA & TIKANOJA PLC
Board of Directors
Ville Rantala
President and CEO (acting)
For additional information please contact Ville Rantala, President and CEO
(acting), tel. +358 50 385 1442 or Keijo Keränen, Head of Treasury & IR, tel.
+358 50 385 6957.
Lassila & Tikanoja specialises in environmental management and property and
plant support services and is a leading supplier of wood-based biofuels,
recovered fuels and recycled raw materials. With operations in Finland, Sweden,
Latvia and Russia, L&T employs 10,000 persons. Net sales in 2010 amounted to
EUR 598 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com
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