2014-10-23 07:00:01 CEST
2014-10-23 07:00:07 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January - 30 September 2014
Helsinki, Finland, 2014-10-23 07:00 CEST (GLOBE NEWSWIRE) --
Lassila & Tikanoja plc Interim Report 23
October 2014 8.00 am
Lassila & Tikanoja plc: Interim Report 1 January - 30 September 2014
Net sales for the third quarter EUR 158.1 million (EUR 161.9 million);
operating profit EUR 19.4 million (EUR 20.0 million); operating profit
excluding non-recurring items EUR 19.7 million (EUR 20.1 million); earnings per
share EUR 0.39 (EUR 0.35)
Net sales for January-September EUR 477.4 million (EUR 498.5 million);
operating profit EUR 34.5 million (EUR 34.8 million); operating profit
excluding non-recurring items EUR 40.6 million (EUR 40.3 million); earnings per
share EUR 0.25 (EUR 0.61)
Lassila & Tikanoja's net sales in 2014 are expected to remain at the 2013 level
or slightly below. Operating profit excluding non-recurring items is expected
to remain at the 2013 level or slightly below.
CEO PEKKA OJANPÄÄ:
“As expected, the economic recession has decreased material flows in the
industrial, construction and retail sectors. The general economic situation has
also had a negative effect on the demand for services in the Facility Services
division. The comparable net sales of Environmental Services, however, grew due
to successful sales work and a strengthened market position. In Industrial
Services, we achieved growth and improved profitability in spite of the market
situation, primarily on the strength of high demand for process cleaning. In
Facility Services and Renewable Energy Sources, we continued to improve the
efficiency of operations. In line with our strategy, our focus in the
prevailing economic situation is on strengthening our market position and
ensuring profitability and cash flow. Our relative profitability has continued
to improve this year.”
GROUP NET SALES AND FINANCIAL PERFORMANCE
Third quarter
Lassila & Tikanoja's net sales for the third quarter decreased by 2.3%
year-on-year, to EUR 158.1 million (EUR 161.9 million). Operating profit was
EUR 19.4 million (EUR 20.0 million). Operating profit excluding non-recurring
items was EUR 19.7 million (EUR 20.1 million), representing 12.4% (12.4%) of
net sales. Earnings per share were EUR 0.39 (EUR 0.35).
During the third quarter, comparable net sales decreased in the Facility
Services and Renewable Energy Sources divisions, but grew in the Environmental
Services and Industrial Services divisions.
The net sales of the comparison period includes EUR 4.2 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.
Operating profit excluding non-recurring items was lower than in the comparison
period due to demand for services of Facility Services division being weaker
than in the previous year, as expected. Operating profit excluding
non-recurring items was also affected by a write-down of EUR 0.4 million on
inventories reported under Renewable Energy Sources, and a non-recurring EUR
0.2 million write-down on inventories of discontinued business operations. The
total write-down for Renewable Energy Sources was EUR 0.7 million.
January-September
Lassila & Tikanoja's net sales for January-September amounted to EUR 477.4
million (EUR 498.5 million), a decrease of 4.2% year-on-year. Operating profit
was EUR 34.5 million (EUR 34.8 million). Operating profit excluding
non-recurring items was EUR 40.6 million (EUR 40.3 million), representing 8.5%
(8.1%) of net sales. Earnings per share were EUR 0.25 (EUR 0.61).
During the first three quarters of the year, comparable net sales decreased in
the Facility Services and Renewable Energy Sources divisions, but grew in the
Environmental Services and Industrial Services divisions.
The net sales of the comparison period includes EUR 12.2 million in net sales
from the Latvian business operations that were divested on 13 March 2014 as
well as EUR 0.8 million of operating profit. The 2013 net sales of the company
includes EUR 16.6 million of net sales from the Latvian business operations as
well as EUR 1.3 million of operating profit, most of which is allocated to the
Environmental Services division.
The operating profit recorded for January-September includes EUR 6.4 million of
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.
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
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2014 2013 % 2014 2013 % 2013
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------------------------------------------------
Net sales, EUR million 158.1 161.9 -2.3 477.4 498.5 -4.2 668.2
------------------------- -------
Operating profit 19.7 20.1 -2.2 40.6 40.3 0.7 51.8
excluding non-recurring
items, EUR million*
------------------------- -------
Operating margin 12.4 12.4 8.5 8.1 7.8
excluding non-recurring
items, %
------------------------- -------
Operating profit, EUR 19.4 20.0 -2.9 34.5 34.8 -0.9 33.2
million
------------------------- -------
Operating margin, % 12.3 12.4 7.2 7.0 5.0
------------------------- -------
Profit before tax, EUR 18.5 18.9 -1.9 16.0 32.7 -51.1 30.3
million
------------------------- -------
Earnings per share, EUR 0.39 0.35 10.2 0.25 0.61 -58.1 0.57
------------------------- -------
EVA, EUR million 14.6 15.0 -2.6 19.5 19.3 1.3 12.4
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* Breakdown is presented below the division reviews.
NET SALES AND OPERATING PROFIT BY DIVISION
Environmental Services
Third quarter
The division's net sales for the third quarter decreased by 1.2% to EUR 64.6
million (EUR 65.4 million). Operating profit totalled EUR 10.7 million (EUR
11.9 million) and operating profit excluding non-recurring items was EUR 10.6
million (EUR 11.9 million).
Comparable net sales increased by 3.7% due to successful sales work and a
strengthened market position. Demand continued to grow in waste management and
Russian operations.
The net sales of the comparison period includes EUR 3.1 million of net sales
from the Latvian business operations that were divested on 13 March 2014.
The profitability of business operations was affected by the declining volumes
of recyclable materials and construction waste, and the weakened profitability
of municipal contracts.
January-September
The Environmental Services division's net sales for January-September amounted
to EUR 189.7 million (EUR 192.2 million), showing a decrease of 1.3%. Operating
profit was EUR 26.5 million (EUR 27.2 million) and operating profit excluding
non-recurring items was EUR 26.9 million (EUR 27.2 million).
Demand in the recycling business was weakened by the decrease in the volume of
recyclable materials, due to the market conditions. Demand grew particularly in
waste management and Russian operations.
Comparable net sales increased by 2.4%. The net sales of the comparison period
includes EUR 8.9 million of net sales from the Latvian business operations that
were divested on 13 March 2014.
The profitability of business operations was affected by the declining volumes
of recyclable materials and construction waste, and the weakened profitability
of municipal contracts.
Industrial Services
Third quarter
The division's net sales for the third quarter totalled EUR 21.8 million (EUR
20.9 million), showing an increase of 4.1%. Operating profit was EUR 3.1
million (EUR 2.3 million) and operating profit excluding non-recurring items
was EUR 3.1 million (EUR 2.6 million).
There was strong demand for the services of process cleaning and hazardous
waste management. Net sales decreased in sewer maintenance and environmental
construction.
Operating profit excluding non-recurring items increased substantially after
profitability improved across all service lines.
January-September
The Industrial Services division's net sales for January-September totalled EUR
57.5 million (EUR 54.7 million), showing an increase of 5.2%. Operating profit
was EUR 4.9 million (EUR 3.7 million) and operating profit excluding
non-recurring items was EUR 4.9 million (EUR 4.0 million).
Net sales increased in hazardous waste management, sewer maintenance and
process cleaning. Environmental construction was the only service line in which
net sales were lower than in the comparison period.
The division improved the profitability of its operations as a result of
efficiency improvement measures and increasing volume.
Facility Services
Third quarter
The division's net sales for the third quarter were down by 4.2% to EUR 68.6
million (EUR 71.6 million). Operating profit and operating profit excluding
non-recurring items were EUR 6.3 million (EUR 6.7 million).
The division's net sales declined year-on-year, due to 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. Demand for maintenance of technical systems, however, was strong.
The profitability of the division was decreased by the weaker profitability of
cleaning and, in particular, damage repair services. Property maintenance and
maintenance of technical systems improved their profitability year-on-year.
January-September
The Facility Services division's net sales for January-September decreased by
6.7% to EUR 206.0 million (EUR 220.8 million). Operating profit totalled EUR
8.9 million (EUR 10.0 million). Operating profit excluding non-recurring items
was EUR 9.0 million (EUR 10.4 million).
The division's net sales declined year-on-year, due to business downsizing in
Sweden and lower than normal demand for damage repair services and seasonal
work in property maintenance.
The profitability of the division decreased by the lower demand for services in
the cleaning and property maintenance businesses and by the weak profitability
of damage repair services.
Demand for the division's services has declined, which has decreased net sales
and profitability. The entire division is undergoing a major reorganisation
process in order to adapt operations to the changes in market conditions. This
affects the profitability of business operations.
Renewable Energy Sources
Third quarter
Third quarter net sales of Renewable Energy Sources (L&T Biowatti) were down by
17.3% to EUR 6.1 million (EUR 7.4 million). The operating loss totalled EUR 0.5
million (operating loss EUR 0.2 million) and the operating loss excluding
non-recurring items was EUR 0.3 million (operating loss EUR 0.4 million).
The decrease in net sales was attributable to the delayed start to the heating
season in Northern Finland. As a result of efficiency improvement measures,
operational efficiency improved year-on-year.
Operating profit excluding non-recurring items nevertheless showed a loss due
to a write-down of EUR 0.4 million on the company's inventories and a
non-recurring EUR 0.2 million write-down on inventories of discontinued
business operations. The total write-down for Renewable Energy Sources was EUR
0.7 million.
January-September
The net sales of Renewable Energy Sources (L&T Biowatti) in January-September
were down by 23.6% to EUR 32.2 million (EUR 42.2 million). Operating profit
totalled EUR 0.6 million (EUR 0.9 million) and operating profit excluding
non-recurring items was EUR 0.8 million (EUR 0.5 million).
The decrease in net sales is primarily attributable to the short heating season
early in the year and the downsizing of operations in Eastern Finland. As a
result of efficiency improvement measures, relative profitability improved
year-on-year. Operating profit excluding non-recurring items was affected by a
write-down of EUR 0.4 million on the company's inventories and a non-recurring
EUR 0.2 million write-down on inventories of discontinued business operations.
The total write-down for Renewable Energy Sources was EUR 0.7 million.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2014 2013 2014 2013 2013
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Operating profit 19.4 20.0 34.5 34.8 33.2
Non-recurring items:
Gain on sale of L&T Biowatti Oy equipment -0.2 -0.5 -0.5
Impairment of EcoStream Oy shares 5.0 5.0
L&T Recoil Oy 6.4
Divestment of Latvian business operations -1.1
Impairment of goodwill in Swedish business 7.0
operations
Potential costs of closure of divested land areas 5.0
Discontinuation of the sewer renovation business 1.2
Restructuring costs 0.2 0.5 1.0 1.0
Other non-recurring items 0.2 0.2
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Operating profit excluding non-recurring items 19.7 20.1 40.6 40.3 51.8
FINANCING
Cash flows from operating activities amounted to EUR 49.1 million (EUR 61.1
million). A total of EUR 9.4 million in working capital was committed (EUR 0.5
million released). The principal reason behind working capital commitment was
the increase in trade receivables.
At the end of the period, interest-bearing liabilities amounted to EUR 99.6
million (EUR 87.4 million).
Net interest-bearing liabilities amounted to EUR 64.3 million, largely
unchanged from the beginning of the year and down EUR 1.0 million year-on-year.
Net financial expenses in January-September amounted to EUR 18.5 million (EUR
2.1 million). Net financial expenses were 3.9% (0.4%) of net sales. The
increase in net financial expenses was due to the EUR 16.7 million payment made
under the L&T Recoil Oy guarantee commitment.
The average interest rate on long-term loans (with interest-rate hedging) was
1.7% (2.2%). Long-term loans totalling EUR 4.1 million will mature during the
rest of the year.
The equity ratio was 45.6% (50.2%) and the gearing rate was 31.9 (28.1). Liquid
assets at the end of the period amounted to EUR 35.3 million (EUR 22.1
million).
Of the EUR 100 million commercial paper programme, EUR 0 (EUR 20.0 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.
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 January-September 2014, gross capital expenditure totalled EUR 27.9 million
(EUR 23.7 million), consisting mainly of machine and equipment purchases and
small targeted acquisitions.
PERSONNEL
In January-September, the average number of employees converted into full-time
equivalents was 7,386 (8,298). At the end of the period, Lassila & Tikanoja had
7,952 (9,017) full-time and part-time employees. Of these, 7,161 (7,133) worked
in Finland and 791 (1,884) in other countries. The number of employees working
in other countries was mainly decreased by the divestment of the Latvian
business operations.
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading on Nasdaq Helsinki in January-September 2014, excluding
the shares held by the company in Lassila & Tikanoja plc, was 6,892,558 shares,
which is 17.8% (14.0%) of the average number of outstanding shares. The value
of trading was EUR 98.1 million (EUR 72.8 million). The trading price varied
between EUR 13.31 and EUR 15.84. The closing price was EUR 13.36. At the end of
the period, the market capitalisation excluding the shares held by the company
was EUR 517.7 million (EUR 583.7 million).
Own shares
At the end of the period, the company held 51,409 of its own shares,
representing 0.1% of all shares and votes.
Share capital and number of shares
The company's registered share capital amounts to EUR 19,399,437 and the number
of outstanding shares is 38,747,465. The average number of shares excluding the
shares held by the company was 38,737,749.
Share-based incentive programme 2014
On 18 December 2013, Lassila & Tikanoja plc's Board of Directors decided on a
new share-based incentive programme for 2014 as part of the key personnel's
incentive and commitment system. The earnings period of the programme began on
1 January 2014 and ends on 31 December 2014. Any rewards to be paid for 2014
will be based on the Group's EVA result. Possible rewards will be paid partly
as shares and partly in cash. A maximum of 39,105 Lassila & Tikanoja plc shares
may be paid out under the programme. The programme covers 10 persons.
Shareholders
At the end of the period, the company had 9,764 (9,204) shareholders.
Nominee-registered holdings accounted for 16.9% (19.6%) 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. Lassila &
Tikanoja's net sales in 2014 are expected to remain at the 2013 level or
slightly below. 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.
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.
During the last quarter of the year 2014, the company will review its inventory
valuation model for Renewable Energy Sources in relation to system changes.
Potential changes to the valuation model may affect inventory values and the
company's result.
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 REST OF THE YEAR
Lassila & Tikanoja's net sales in 2014 are expected to remain at the 2013 level
or slightly below. Operating profit excluding non-recurring items is expected
to remain at the 2013 level or slightly below.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY - 30 SEPTEMBER 2014
CONSOLIDATED INCOME STATEMENT
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2014 2013 2014 2013 2013
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Net sales 158.1 161.9 477.4 498.5 668.2
Cost of sales -133.2 -136.3 -418.8 -440.2 -597.3
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Gross profit 24.9 25.6 58.6 58.4 70.9
Other operating income 0.5 1.2 3.3 3.0 4.3
Sales and marketing expenses -3.0 -3.1 -10.5 -10.5 -14.5
Administrative expenses -2.5 -3.0 -9.1 -9.3 -13.0
Other operating expenses -0.5 -0.6 -7.7 -1.7 -2.5
Impairment, property, plant and - - - -5.0 -5.0
equipment and other non-current assets
Impairment, goodwill and other - - - - -7.0
intangible assets
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Operating profit 19.4 20.0 34.5 34.8 33.2
Financial income 0.1 0.1 0.3 0.3 0.5
Financial expenses -1.0 -1.2 -18.8 -2.5 -3.4
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Profit before tax 18.5 18.9 16.0 32.7 30.3
Income taxes -3.5 -5.3 -6.1 -9.1 -8.1
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Profit for the period 15.0 13.6 9.9 23.5 22.2
Attributable to:
Equity holders of the company 15.0 13.6 9.9 23.5 22.2
Non-controlling interest 0.0 0.0 0.0 0.0 0.0
Earnings per share attributable to
equity holders of the parent company:
Earnings per share, EUR 0.39 0.35 0.25 0.61 0.57
Diluted earnings per share, EUR 0.39 0.35 0.25 0.61 0.57
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2014 2013 2014 2013 2013
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Profit for the period 15.0 13.6 9.9 23.5 22.2
Items not to be recognised through profit or loss
Items arising from re-measurement of defined - - - - 0.1
benefit plans
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Items not to be recognised through profit or - - - - 0.1
loss, total
Items potentially to be recognised through profit
or loss
Hedging reserve, change in fair value -0.1 0.4 -0.4 0.1 -0.4
Revaluation reserve
Current available-for-sale financial assets
Gains in the period 0.0 0.0 0.0 0.0 0.0
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Current available-for-sale financial assets 0.0 0.0 0.0 0.0 0.0
Currency translation differences -0.2 0.6 -0.7 -0.2 -0.4
Currency translation differences recognised in 0.0 0.0 0.3 0.0 0.0
profit or loss
Currency translation differences, non-controlling 0.0 0.0 0.0 0.0 0.0
interest ------------------------------
Items potentially to be recognised through profit -0.4 1.0 -0.8 -0.1 -0.8
or loss, total
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Total comprehensive income, after tax 14.6 14.6 9.1 23.4 21.4
Attributable to:
Equity holders of the company 14.6 14.6 9.1 23.5 21.5
Non-controlling interest 0.0 0.0 0.0 0.0 0.0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 9/2014 9/2013 12/2013
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ASSETS
Non-current assets
Intangible assets
Goodwill 108.2 120.1 112.8
Customer contracts arising from acquisitions 3.7 5.7 5.1
Agreements on prohibition of competition 0.0 0.7 0.4
Other intangible assets arising from business 0.0 0.0 0.0
acquisitions
Other intangible assets 8.8 8.0 8.0
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120.7 134.5 126.3
Property, plant and equipment
Land 3.4 3.7 3.8
Buildings and constructions 46.0 49.9 49.7
Machinery and equipment 109.9 115.6 115.8
Other 0.1 0.1 0.1
Prepayments and construction in progress 3.5 3.6 2.2
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162.8 172.9 171.5
Other non-current assets
Holdings in associated companies 0.0 0.0 0.0
Available-for-sale investments 0.6 4.3 4.3
Finance lease receivables 3.4 3.7 3.7
Deferred tax assets 2.9 2.7 2.8
Other receivables 2.0 5.7 2.4
--------------------------------------------------------------------------------
8.9 16.5 13.2
Total non-current assets 292.5 323.9 311.0
Current assets
Inventories 24.1 29.3 26.1
Trade and other receivables 101.3 97.4 100.0
Derivative receivables 0.0 0.7 0.1
Prepayments 2.3 2.0 0.3
Cash and cash equivalents 35.3 22.1 58.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total current assets 163.1 151.5 185.0
Total assets 455.6 475.4 496.0
--------------------------------------------------------------------------------
EUR million 9/2014 9/2013 12/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the parent
company
Share capital 19.4 19.4 19.4
Other reserves -2.3 -0.8 -1.5
Invested unrestricted equity reserve 0.3 6.1 0.3
Retained earnings 174.2 184.3 170.9
Profit for the period 9.9 23.5 22.2
--------------------------------------------------------------------------------
201.5 232.5 211.2
Non-controlling interest 0.2 0.2 0.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity 201.7 232.7 211.5
Liabilities
Non-current liabilities
Deferred tax liabilities 24.1 31.1 25.8
Retirement benefit obligations 0.8 0.9 0.8
Provisions 6.1 4.1 6.1
Interest-bearing liabilities 74.8 39.9 65.9
Other liabilities 0.5 0.9 0.5
-------------------------------------------------------- ----------------
106.4 76.8 99.0
--------
Current liabilities
Interest-bearing liabilities 24.8 47.5 57.0
Trade and other payables 119.0 117.7 120.0
Derivative liabilities 0.9 0.5 0.5
Tax liabilities 1.1 0.0 4.7
Provisions 1.7 0.1 3.4
--------------------------------------------------------------------------------
147.5 165.8 185.5
Total liabilities 253.9 242.6 284.5
Total equity and liabilities 455.6 475.4 496.0
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 9/2014 9/2013 12/201
3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 9.9 23.5 22.2
Adjustments
Income taxes 6.1 9.1 8.1
Deprecation and impairment 30.1 36.5 54.0
Financial income and expenses 18.5 2.1 2.9
Gain on sale of shares -1.5 -1.1 0.0
Other 4.2 -0.6 3.8
--------------------------------------------------------------------------------
Net cash generated from operating activities before 67.3 69.7 91.0
change in working capital
Change in working capital
Change in trade and other receivables -9.8 0.8 2.8
Change in inventories 2.0 -4.4 -1.2
Change in trade and other payables -1.7 4.1 6.3
--------------------------------------------------------------------------------
Change in working capital -9.4 0.5 7.9
Interest paid -2.0 -2.5 -3.6
Interest received 0.3 0.3 0.5
Income taxes -7.1 -7.0 -9.3
--------------------------------------------------------------------------------
Net cash from operating activities 49.1 61.1 86.4
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of cash -2.0 - -
acquired
Proceeds from sale of subsidiaries and businesses, net 11.7 - -
of sold cash
Purchases of property, plant and equipment and -23.4 -19.3 -28.1
intangible assets
Proceeds from sale of property, plant and equipment and 0.0 1.1 1.2
intangible assets
Purchases of available-for-sale investments - - -
Change in other non-current receivables 0.0 -3.0 0.4
Proceeds from sale of available-for-sale investments - - -
Dividends received 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in investing activities -13.6 -21.2 -26.5
Cash flows from financing activities
Change in short-term borrowings -34.9 8.0 22.9
Proceeds from long-term borrowings 29.9 - 30.0
Repayments of long-term borrowings -17.6 -17.1 -26.2
Dividends paid and other asset distribution -19.4 -23.2 -42.5
Other financing items -16.7 - -
Acquisition of own shares - - 0.0
Net cash generated from financing activities -58.6 -32.2 -15.9
--------------------------------------------------------------------------------
EUR million 9/2014 9/2013 12/2013
--------------------------------------------------------------------
--------------------------------------------------------------------
Net change in liquid assets -23.2 7.6 44.1
Liquid assets at beginning of period 58.5 14.6 14.6
Effect of changes in foreign exchange rates 0.0 -0.1 -0.2
Liquid assets at end of period 35.3 22.1 58.5
--------------------------------------------------------------------
Liquid assets
EUR million 9/2014 9/2013 12/2013
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash and cash equivalents 35.3 22.1 58.5
Available-for-sale financial assets 0.0 0.0 0.0
--------------------------------------------------------------------
Total 35.3 22.1 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 23.5 23.5 0.0 23.5
for
the
period
Items 0.0 0.0 0.0
arisin
g from
re-mea
suremen
t of
define
d
benefi
t plans
Hedging 0.1 0.1 0.0 0.1
reserv
e,
change
in
fair
value
Availab 0.0 0.0 0.0 0.0
le-for-
sale
financ
ial
assets
Currenc -0.2 -0.2 0.0 -0.2
y
transl
ation
differ
ences
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 0.0 -0.2 0.0 0.1 0.0 23.5 23.5 0.0 23.4
compre
hensive
income
Transac
tions
with
shareh
olders
Share-b -0.1 -0.5 -0.6 -0.6
ased
benefi
ts
Dividen
ds paid
Dividen
ds
return
ed
Capital -23.2 0.3 -22.9 -22.9
repaym
ent
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Transac 0.0 0.0 0.0 0.0 -23.3 -0.2 -23.5 0.0 -23.5
tions
with
shareh
olders,
total
Other 0.0 0.0 0.0 0.0
change
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity 19.4 -1.0 0.0 0.2 6.1 207.8 232.5 0.2 232.7
on 30
Sep.
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 9.9 9.9 0.0 9.9
for
the
period
Items 0.0 0.0
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
le-for-
sale
financ
ial
assets
Currenc -0.4 -0.4 0.0 -0.4
y
transl
ation
differ
ences
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 0.0 -0.4 0.0 -0.4 0.0 9.9 9.1 0.0 9.1
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
Transac 0.0 0.0 0.0 0.0 0.0 -19.5 -19.4 -19.4
tions
with
shareh
olders,
total
--------------------------------------------------------------------------------
Other 0.6 0.6 0.6
change
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity 19.4 -1.6 0.0 -0.7 0.3 184.1 201.5 0.2 201.7
on 30
Sep.
2014
KEY FIGURES
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2014 2013 2014 2013 2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.39 0.35 0.25 0.61 0.57
Diluted earnings per share, EUR 0.39 0.35 0.25 0.61 0.57
Cash flows from operating activities per 0.56 0.43 1.27 1.58 2.23
share, EUR
EVA, EUR million 14.6 15.0 19.5 19.3 12.4
Gross capital expenditure, EUR million 7.6 7.1 27.9 23.7 32.7
Depreciation, amortisation and impairment, 10.0 10.4 30.1 36.5 54.0
EUR million
Equity per share, EUR 5.21 6.01 5.46
Return on equity (ROE), % 6.4 13.5 10.0
Return on invested capital, ROI, % 14.6 14.4 10.6
Equity ratio, % 45.6 50.2 43.7
Gearing, % 31.9 28.1 30.4
Net interest-bearing liabilities, EUR 64.3 65.3 64.4
million
Average number of employees (FTE) 7,386 8,298 8,267
Total number of full-time and part-time 7,952 9,017 8,847
employees at end of period
Number of outstanding shares adjusted for
issues, 1,000 shares
average during the period 38,738 38,703 38,704
at end of period 38,747 38,707 38,707
average during the period, diluted 38,749 38,711 38,721
ACCOUNTING POLICIES
This interim report is in compliance with the IAS 34 (Interim Financial
Reporting) standard. The interim report has been prepared with application of
the IFRS standards and interpretations in effect on 31 December 2013, with the
exception of changes to IFRS standards listed below.
From the beginning of 2014, the figures in the interim report 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, released on 26
February 2014.
The Group observes the following IAS/IFRS standards and interpretations that
came into effect or were amended on 1 January 2014:
• IFRS 10 Consolidated Financial Statements and its amendments
• IFRS 11 Joint Arrangements and its amendments
• IFRS 12 Disclosure of Interests in Other Entities and its amendments
• IAS 27 Separate Financial Statements
• IAS 28 Investments in Associates and Joint Ventures
• IFRIC 21 Levies
The amended standards and interpretations did not have a material impact on the
reported result or financial position.
The interim report has not been audited.
SEGMENT INFORMATION
Net sales
7-9/ 7-9/
2014 2013
------- ---------------
EUR million Extern Interdiv Total Extern Interdiv Total Total net
al ision al ision sales, change
%
--------------------------------------------------------------------------------
------- ---------------
Environmental 64.0 0.7 64.6 64.9 0.6 65.4 -1.2
Services
------- -------
Industrial 20.4 1.4 21.8 19.9 1.0 20.9 4.1
Services
------- -------
Facility 67.7 1.0 68.6 70.6 1.1 71.6 -4.2
Services
------- -------
Renewable 6.1 0.0 6.1 6.5 0.9 7.4 -17.3
Energy
Sources
------- -------
Eliminations -3.1 -3.1 -3.5 -3.5
--------------------------------------------------------------------------------
-------
Total 158.1 0.0 158.1 161.9 0.0 161.9 -2.3
------- ---------------
1-9/ 1-9/
2014 2013
------- ---------------
EUR million Extern Interdiv Total Extern Interdiv Total Total net
al ision al ision sales, change
%
--------------------------------------------------------------------------------
------- ---------------
Environmental 187.2 2.5 189.7 189.7 2.6 192.2 -1.3
Services
------- -------
Industrial 55.1 2.4 57.5 51.9 2.7 54.7 5.2
Services
------- -------
Facility 202.9 3.1 206.0 217.7 3.2 220.8 -6.7
Services
------- -------
Renewable 32.1 0.2 32.2 39.3 2.9 42.2 -23.6
Energy
Sources
------- -------
Eliminations -8.1 -8.1 -11.4 -11.4
--------------------------------------------------------------------------------
-------
Total 477.4 0.0 477.4 498.5 0.0 498.5 -4.2
------- ---------------
1-12/
2013
EUR million External Interdivision Total
--------------------------------------------------------
Environmental Services 254.1 3.8 257.9
Industrial Services 72.1 3.4 75.5
Facility Services 287.8 4.7 292.5
Renewable Energy Sources 54.1 3.9 58.0
Eliminations -15.8 -15.8
--------------------------------------------------------
Total 668.2 0.0 668.2
Operating profit
EUR 7-9/ % 7-9/ % 1-9/ % 1-9/ % 1-12/ %
million 2014 2013 2014 2013 2013
--------------------------------------------------------------------------------
Environmen 10.7 16.5 11.9 18.2 26.5 14.0 27.2 14.1 30.1 11.7
tal
Services
Industrial 3.1 14.2 2.3 10.9 4.9 8.5 3.7 6.7 5.2 6.9
Services
Facility 6.3 9.1 6.7 9.4 8.9 4.3 10.0 4.5 4.4 1.5
Services
Renewable -0.5 -8.1 -0.2 -2.7 0.6 1.8 0.9 2.0 1.4 2.5
Energy
Sources
Group -0.1 -0.7 -6.4 -6.9 -8.0
administr
ation and
other
--------------------------------------------------------------------------------
Total 19.4 12.3 20.0 12.4 34.5 7.2 34.8 7.0 33.2 5.0
OTHER SEGMENT INFORMATION
EUR million 9/2014 9/2013 12/2013
-------------------------------------------------------
Assets
Environmental Services 208.7 217.3 214.5
Industrial Services 78.2 74.2 70.0
Facility Services 102.2 112.5 103.4
Renewable Energy Sources 24.8 30.8 29.4
Group administration and other 1.3 7.5 7.5
Unallocated assets 40.4 33.1 71.3
-------------------------------------------------------
L&T total 455.6 475.4 496.0
Liabilities
Environmental Services 50.5 46.0 51.8
Industrial Services 23.7 21.4 21.5
Facility Services 45.2 47.3 49.6
Renewable Energy Sources 7.1 7.4 5.5
Group administration and other 1.4 1.3 2.1
Unallocated liabilities 126.0 119.3 154.0
-------------------------------------------------------
L&T total 253.9 242.6 284.5
EUR million 7-9/2014 7-9/2013 1-9/2014 1-9/2013 1-12/2013
--------------------------------------------------------------------------------
Capital expenditure
Environmental Services 4.2 3.9 15.0 11.3 15.7
Industrial Services 1.3 0.7 4.9 2.3 3.2
Facility Services 2.1 2.3 7.9 7.9 11.3
Renewable Energy Sources 0.0 0.1 0.1 0.2 0.3
Group administration and 0.0 0.0 0.0 2.1 2.2
other
--------------------------------------------------------------------------------
L&T total 7.6 7.1 27.9 23.7 32.7
Depreciation and amortisation
Environmental Services 5.0 5.4 15.2 16.5 21.9
Industrial Services 1.7 1.6 4.9 5.0 6.6
Facility Services 3.2 3.3 9.7 9.8 13.2
Renewable Energy Sources 0.1 0.1 0.2 0.2 0.3
Group administration and other 0.0 0.0 0.0 0.0 0.0
------------------------------------------------------------
L&T total 10.0 10.4 30.1 31.5 42.0
Impairment
Environmental Services
Industrial Services
Facility Services 7.0
Renewable Energy Sources
Group administration and other 5.0 5.0
------------------------------------------------------------
L&T total 0.0 0.0 0.0 5.0 12.0
INCOME STATEMENT BY QUARTER
EUR million 7-9/ 4-6/ 1-3/ 10-12/ 7-9/
2014 2014 2014 2013 2013
----------------------------------------------------------------------
Net sales
Environmental Services 64.6 64.2 60.9 65.7 65.4
Industrial Services 21.8 19.7 16.0 20.9 20.9
Facility Services 68.6 68.3 69.0 71.7 71.6
Renewable Energy Sources 6.1 10.3 15.8 15.8 7.4
Group administration and other
Interdivision net sales -3.1 -2.7 -2.4 -4.4 -3.5
----------------------------------------------------------------------
L&T total 158.1 159.8 159.4 169.7 161.9
Operating profit
Environmental Services 10.7 9.3 6.6 2.9 11.9
Industrial Services 3.1 1.9 -0.1 1.6 2.3
Facility Services 6.3 2.1 0.6 -5.6 6.7
Renewable Energy Sources -0.5 0.3 0.8 0.6 -0.2
Group administration and other -0.1 -0.6 -5.7 -1.1 -0.7
----------------------------------------------------------------------
L&T total 19.4 12.9 2.1 -1.6 20.0
Operating margin
Environmental Services 16.5 14.4 10.9 4.5 18.2
Industrial Services 14.2 9.8 -0.9 7.6 10.9
Facility Services 9.1 3.0 0.8 -7.8 9.4
Renewable Energy Sources -8.1 2.5 5.2 3.7 -2.7
----------------------------------------------------------------------
-----------------------------------
L&T total 12.3 8.1 1.3 -1.0 12.4
Financial income and expenses, net -0.9 0.0 -17.7 -0.7 -1.1
----------------------------------------------------------------------
Profit before tax 18.5 12.9 -15.5 -2.3 18.9
BUSINESS ACQUISITIONS, COMBINED
EUR million Fair value
-------------------------------------------------------------
Intangible assets 0.6
Property, plant and equipment 0.5
Investments 0.0
Receivables 0.4
Cash and cash equivalents 0.8
-------------------------------------------------------------
Total assets 2.2
Interest-bearing liabilities 0.2
Other liabilities 0.5
Deferred tax liabilities 0.1
-------------------------------------------------------------
Total liabilities 0.8
Net assets acquired 1.4
Total consideration 2.8
Goodwill 1.4
Effect on cash flow
Consideration paid in cash -2.8
Cash and cash equivalents of the acquired company 0.8
-------------------------------------------------------------
Cash flow from investing activities -2.0
Environmental Services acquired Paperitiikerit Oy on 1 February 2014 and
Joutsan Kuljetus Oy on 1 March 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 1-9/2014 1-9/2013 1-12/2013
---------------------------------------------------------------------
---------------------------------------------------------------------
Carrying amount at beginning of period 126.3 138.4 138.4
Business acquisitions 1.9
Other capital expenditure 3.0 1.9 2.6
Disposals -5.6
Deprecation and impairment -4.4 -5.3 -14.0
Transfers between items -0.1 -0.3
Exchange differences -0.4 -0.5 -0.4
---------------------------------------------------------------------
Carrying amount at end of period 120.7 134.5 126.3
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 1-9/2014 1-9/2013 1-12/2013
---------------------------------------------------------------------
---------------------------------------------------------------------
Carrying amount at beginning of period 171.5 180.2 180.2
Business acquisitions 0.5
Other capital expenditure 22.4 19.9 28.1
Disposals -5.6 -0.7 -1.3
Deprecation and impairment -25.7 -26.2 -35.0
Transfers between items 0.1 0.3
Exchange differences -0.4 -0.2 -0.8
---------------------------------------------------------------------
Carrying amount at end of period 162.8 172.9 171.5
CAPITAL COMMITMENTS
EUR million 9/2014 9/2013 12/2013
------------------------------------------------------
------------------------------------------------------
Intangible assets 0.0 0.0 0.0
Property, plant and equipment 3.7 5.1 4.0
------------------------------------------------------
Total 3.7 5.1 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 0.6 3
le-for-
sale
invest
ments
Finance 3.4 3.4 3.4 2
lease
receiv
ables
Other 2.0 2.0 2.0
receiv
ables
Current
financ
ial
assets
Trade 96.2 96.2 96.2
and
other
receiv
ables
Derivat
ive
receiv
ables
Cash 35.3 35.3 35.3
and
cash
equiva
lents
-------------------------------------------------------------------------
Total 137.0 0.6 0.0 0.0 137.6 137.6
financ
ial
assets
Non-cur
rent
financ
ial
liabil
ities
Borrowi 74.8 0.0 0.1 2
ngs
Other 0.2 0.2 0.2
liabil
ities
Current
financ
ial
liabil
ities
Borrowi 24.8 24.8
ngs
Trade 60.0 60.0
and
other
payabl
es
Derivat 0.7 0.7 0.7 2
ive
liabil
ities
-------------------------------------------------------------------------
Total 159.8 0.7 85.7 1.0
financ
ial
liabil
ities
CONTINGENT LIABILITIES
Securities for own commitments
EUR million 9/2014 9/2013 12/2013
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Mortgages on rights of tenancy 0.2 0.2 0.1
Company mortgages 0.9 0.6 0.6
Other securities 0.2 0.2 0.2
Bank guarantees required for environmental permits 8.1 8.7 9.5
Other securities are security deposits.
Operating lease liabilities
EUR million 9/2014 9/2013 12/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Maturity not later than one year 3.9 4.9 5.0
Maturity later than one year and not later than five 3.6 5.6 6.1
years
Maturity later than five years 2.0 2.1 2.2
--------------------------------------------------------------------------------
Total 9.6 12.7 13.4
Liabilities associated with derivative agreements
Cross currency interest rate swaps
EUR million 9/2014 9/2013 12/201
3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Maturity of cross currency interest rate swaps under
hedge accounting
Maturity not later than one year 0.0 11.2 7.2
Maturity later than one year and not later than five 0.0 12.3 9.5
years
--------------------------------------------------------------------------------
Total 0.0 23.5 16.7
Fair value 0.7 0.1
The contracts are used for the hedging of foreign currency loans. The changes
in their fair values are shown on the consolidated statement of comprehensive
income.
Interest rate swaps
EUR million 9/2014 9/2013 12/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Nominal values of interest rate swaps
Maturity not later than one year 9.0 17.1 14.0
Maturity later than one year and not later than five 42.3 19.5 16.7
years
Maturity later than five years 0.0 1.8 0.9
--------------------------------------------------------------------------------
Total 51.4 38.4 31.7
Fair value -0.7 -0.5 -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 9/2014 9/2013 12/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 3.3 4.5 9.7
Maturity later than one year and not later than five 0.0 0.0 0.8
years
--------------------------------------------------------------------------------
Total 3.3 4.5 10.6
Fair value -0.1 0.0 -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.
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, 23 October 2014
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. With
operations in Finland, Sweden and Russia, L&T employs 8,000 persons. Net sales
in 2013 amounted to EUR 668.2 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lassila-tikanoja.com
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