2013-10-23 07:00:01 CEST
2013-10-23 07:00:06 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January - 30 September 2013
Helsinki, Finland, 2013-10-23 07:00 CEST (GLOBE NEWSWIRE) --
Net sales for the third quarter EUR 161.9 million (EUR 161.2 million);
operating profit EUR 20.0 million (EUR 19.6 million); operating profit
excluding non-recurring items EUR 20.1 million (EUR 19.7 million); earnings per
share EUR 0.35 (EUR 0.40)
Net sales for January-September EUR 498.5 million (EUR 502.2 million);
operating profit EUR 34.8 million (EUR 38.7 million); operating profit
excluding non-recurring items EUR 40.3 million (EUR 36.9 million); earnings per
share EUR 0.61 (EUR 0.71)
Full-year net sales in 2013 are expected to remain at the 2012 level. Operating
profit, excluding non-recurring items, is expected to remain at the 2012 level
or improve slightly.
CEO PEKKA OJANPÄÄ:"In the third quarter, we were again able to improve our profitability from the
comparison period and to generate a strong cash flow. Profitability was at a
healthy level, particularly in Environmental Services. Financial uncertainty is
continuing to have an impact on demand in the industrial sector and on material
flows in the construction and retail sectors. This will hold back net sales
growth."
GROUP NET SALES AND FINANCIAL PERFORMANCE
Third quarter
Lassila & Tikanoja's net sales for the third quarter increased by 0.4% to EUR
161.9 million (EUR 161.2 million). Operating profit was EUR 20.0 million (EUR
19.6 million), and operating profit excluding non-recurring items was EUR 20.1
million (EUR 19.7 million), representing 12.4% (12.2%) of net sales. Earnings
per share were EUR 0.35 (EUR 0.40).
Profitability developed favourably in the third quarter, especially in
Environmental Services and Industrial Services. Fixed cost management and
efficiency enhancement measures taken across the Group supported the
profitability.
Comparable net sales includes EUR 0.7 million of net sales generated by the
divested parts of the eco product business.
January-September
Lassila & Tikanoja's net sales for January-September amounted to EUR 498.5
million (EUR 502.2 million); a decrease of 0.7%. Operating profit was EUR 34.8
million (EUR 38.7 million), and operating profit excluding non-recurring items
was EUR 40.3 million (EUR 36.9 million), representing 8.1% (7.3%) of net sales.
Earnings per share were EUR 0.61 (EUR 0.71).
Comparable net sales includes EUR 8.0 million worth of net sales generated by
L&T Recoil and the divested parts of the eco product business.
The non-recurring reorganisation costs of EUR 1.0 million (EUR 2.1 million) and
the EUR 5.0 million impairment on EcoStream Oy's shares had a negative impact
on operating profit. A sales gain of EUR 4.2 million on the divestment of L&T
Recoil shares improved the reported operating profit in the comparison period.
Financial summary
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
2013 2012 % 2013 2012 % 2012
--------------------------------------------------------------------------------
--------------------------------------------
Net sales, EUR million 161.9 161.2 0.4 498.5 502.2 -0.7 674.0
------------------------------ ------
Operating profit excluding 20.1 19.7 2.3 40.3 36.9 9.2 47.4
non-recurring items, EUR
million*
------------------------------ ------
Operating margin excluding 12.4 12.2 8.1 7.3 7.0
non-recurring items, %
------------------------------ ------
Operating profit, EUR million 20.0 19.6 2.0 34.8 38.7 -10.1 48.4
------------------------------ ------
Operating margin, % 12.4 12.2 7.0 7.7 7.2
------------------------------ ------
Profit before tax, EUR 18.9 19.1 -0.9 32.7 33.8 -3.4 43.0
million
------------------------------ ------
Earnings per share, EUR 0.35 0.40 -12.5 0.61 0.71 -14.1 0.89
------------------------------ ------
EVA, EUR million 15.0 13.8 8.7 19.3 20.2 -4.5 24.1
--------------------------------------------------------------------------------
* 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 were down by 1.4% to EUR 65.4
million (EUR 66.4 million). Operating profit totalled EUR 11.9 million (EUR
11.0 million) and operating profit excluding non-recurring items was EUR 11.9
million (EUR 11.1 million).
Profitability developed favourably in the third quarter, thanks to a strict
fixed cost management and greater operational efficiency.
Comparable net sales includes EUR 0.7 million worth of net sales generated by
the divested parts of the eco product business.
January-September
The Environmental Services division's net sales for January-September amounted
to EUR 192.2 million (EUR 201.0 million), showing a decrease of 4.4%. Operating
profit totalled EUR 27.2 million (EUR 27.7 million) and operating profit
excluding non-recurring items was EUR 27.2 million (EUR 24.0 million).
Comparable net sales includes EUR 8.0 million worth of net sales generated by
L&T Recoil and the divested parts of the eco product business.
Comparable net sales remained at the comparison period's level, even though the
recycling material volume declined following the slowdown in the building and
retail trade sectors. Net sales growth could be attributed to new customer
contracts and positive developments in the waste management business.
Efficiency enhancement and cost control measures contributed to the increase in
operating profit.
Industrial Services
Third quarter
The division's net sales for the third quarter totalled EUR 20.9 million (EUR
18.1 million), showing an increase of 15.4%. Operating profit totalled EUR 2.3
million (EUR 1.8 million) and operating profit excluding non-recurring items
was EUR 2.6 million (EUR 1.8 million).
The division's net sales grew, primarily as a result of the increase in net
sales in environmental construction. Operating profit excluding non-recurring
items rose thanks to efficiency enhancement measures and effective cost
control.
January-September
The division's net sales for January-September totalled EUR 54.7 million (EUR
51.2 million), showing an increase of 6.7%. Operating profit totalled EUR 3.7
million (EUR 2.7 million) and operating profit excluding non-recurring items
was EUR 4.0 million (EUR 3.1 million).
Net sales grew following an increase in demand for process cleaning. Demand for
sewer maintenance services and environmental construction was modest at the
start of the year, but improved during the summer and early autumn.
Hazardous waste services enjoyed healthy demand and strong profitability
throughout the review period.
Facility Services
Third quarter
The division's net sales for the third quarter were down by 1.5% to EUR 71.6
million (EUR 72.7 million). Operating profit totalled EUR 6.7 million (EUR 7.8
million) and operating profit excluding non-recurring items was EUR 6.7 million
(EUR 7.8 million).
The major restructuring process being deployed in the division continues to
affect business profitability.
January-September
The division's net sales for January-September were down by 1.7% to EUR 220.8
million (EUR 224.7 million). Operating profit totalled EUR 10.0 million (EUR
10.5 million) and operating profit excluding non-recurring items was EUR 10.4
million (EUR 11.7 million).
The division's net sales declined from the comparison period, due to reduced
demand for damage repair services and business downsizing in Sweden.
Costs incurred from the expansion of technical systems services had a negative
effect on profitability, as did weak demand for damage repair services in the
first half.
The Facility Services division implemented efficiency enhancement measures to
improve its profitability. Profitability improved in the cleaning business,
particularly in Sweden.
The entire business segment is currently going through a major restructuring
process to adapt operations to the changes in market conditions, especially in
cleaning and property maintenance.
Renewable Energy Sources
Third quarter
Third quarter net sales of Renewable Energy Sources (L&T Biowatti) were down by
6.9% to EUR 7.4 million (EUR 8.0 million). The division recorded an operating
loss of EUR 0.2 million (operating loss EUR 0.4 million), and an operating loss
excluding non-recurring items of EUR 0.4 million (operating loss EUR 0.4
million).
The decline in net sales can be largely attributed to business downsizing in
Eastern Finland.
January-September
January-September net sales of Renewable Energy Sources (L&T Biowatti) were up
by 12.0% to EUR 42.2 million (EUR 37.7 million). Operating profit amounted to
EUR 0.9 million (operating loss EUR 0.3 million), and operating profit
excluding non-recurring items was EUR 0.5 million (operating loss EUR 0.2
million).
There was a significant improvement in the division's net sales from the
comparison period, due to strong demand for wood-based fuels.
In the first half, profitability suffered from the weaker energy content of
fuels and higher logistics costs. Meanwhile, net sales growth and the
efficiency improvement measures taken improved the operating profit.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
Operating profit 20.0 19.6 34.8 38.7 48.4
Non-recurring items:
Gain on sale of L&T Biowatti Oy -0.2 -0.5
equipment
Impairment of Ecostream Oy shares 5.0
Gain on sale of holding in L&T -4.2 -4.2
Recoil Oy
Impairment of hazardous waste 0.3 0.5
treatment facilities
Gain on sale of eco product -0.2
business
Restructuring costs 0.3 0.1 1.0 2.1 2.9
--------------------------------------------------------------------------------
Operating profit excluding 20.1 19.7 40.3 36.9 47.4
non-recurring items
FINANCING
Cash flows from operating activities amounted to EUR 61.1 million (EUR 49.7
million). A total of EUR 0.5 million in working capital was tied up (EUR 6.4
million tied up).
At the end of the period, interest-bearing liabilities amounted to EUR 87.4
million (EUR 114.0 million). L&T Recoil accounted for EUR 17.7 million of the
interest-bearing liabilities in the reference period. Guarantees of EUR 16.4
million given by Lassila & Tikanoja to other providers of finance for these
liabilities are still in force. In addition L&T had receivables from EcoStream
Group of EUR 3.3 million.
Net interest-bearing liabilities amounted to EUR 65.3 million, showing a
decrease of EUR 17.0 million from the beginning of the year and EUR 37.0
million from the comparison period.
Net finance costs in January-September amounted to EUR 2.1 million (EUR 4.9
million). Net finance costs were 0.4% (1.0%) of net sales. Net financial costs
decreased, largely due to the EUR 2.0 million write-down on receivables from a
subordinated loan in the comparison period.
The average interest rate on long-term loans (with interest-rate hedging) was
2.2% (2.4%). Long-term loans totalling EUR 10.1 million will mature during the
rest of the year.
The equity ratio was 50.2% (47.5%) and the gearing rate 28.1 (45.1). Liquid
assets at the end of the period amounted to EUR 22.1 million (EUR 11.7
million).
Of the EUR 100 million commercial paper programme, EUR 20.0 million (EUR 22.0
million) was in use at the end of the period. A committed limit totalling EUR
30.0 million was not in use, as was the case in the comparison period.
DISTRIBUTION OF ASSETS
The Annual General Meeting held on 12 March 2013 resolved that the profit for
2012 be placed in retained earnings and that no dividend be paid. A capital
repayment of EUR 0.60 per share was paid for the financial year 2012. The
capital repayment, totalling EUR 23.2 million, was paid to the shareholders on
22 March 2013.
CAPITAL EXPENDITURE
Capital expenditure for January-September totalled EUR 23.7 million (EUR 36.3
million) and was mainly comprised of machine and equipment purchases.
PERSONNEL
In January-September the average number of employees converted into full-time
equivalents was 8,298 (8,504). The total number of full-time and part-time
employees at the end of the period was 9,017 (9,101). Of them 7,133 (7,078)
people worked in Finland and 1,884 (2,023) 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 5,428,265
which is 14.0% (20.6%) of the average number of outstanding shares. The value
of trading was EUR 72.8 million (EUR 82.4 million). The trading price varied
between EUR 11.60 and EUR 15.25. The closing price was EUR 15.08. The market
capitalisation excluding the shares held by the company was EUR 583.7 million
(EUR 410.1 million) at the end of the period.
Own shares
At the end of the period the company held 92,247 of its own share shares,
representing 0.2% 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 to 38,706,627 shares. The average number of shares
excluding the shares held by the company totalled 38,703,026.
Share-based incentive programme 2013
Lassila & Tikanoja plc's Board of Directors decided on 17 December 2012 on a
new share-based incentive programme. The programme's earnings period began on 1
January 2013 and ends on 31 December 2013. Potential rewards to be paid for the
year 2013 will be based on the EVA result of Lassila & Tikanoja group.
Potential rewards will be paid partly as shares and partly in cash. A maximum
total of 53,300 Lassila & Tikanoja plc shares may be paid out on the basis of
the programme. The programme covers 10 persons.
Shareholders
At the end of the period, the company had 9,204 (9,411) shareholders.
Nominee-registered holdings accounted for 19.6% (16.7%) of the total number of
shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 12 March 2013 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 500,000 company
shares, which is 1.3% of the total number of shares. The repurchase
authorisation will be effective for 18 months.
The Board of Directors is authorised to decide on issuance of new shares or
shares possibly held by the Company through 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 by virtue of the
authorisation altogether 500,000 shares, which is 1.3% of the total number of
shares, may be issued and/or conveyed at the maximum. The share issue
authorisation will be effective for 18 months.
RESOLUTIONS BY THE GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 12
March 2013, adopted the financial statements for the financial year 2012 and
released the members of the Board of Directors and the President and CEO from
liability.
The AGM resolved that the profit for 2012 be placed in retained earnings and
that no dividend be paid. A capital repayment of EUR 0.60 per share, as
proposed by the Board of Directors, was paid for the financial year 2012 on the
basis of the balance sheet adopted. The capital repayment, totalling EUR 23.2
million, payment date was on 22 March 2013.
The Annual General Meeting confirmed the number of the members of the Board of
Directors five. The following Board members were re-elected to the Board until
the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Hille Korhonen,
Sakari Lassila and Miikka Maijala.
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 12 March 2013.
BOARD OF DIRECTORS
The members of the Board of Directors are Heikki Bergholm, Eero Hautaniemi,
Hille Korhonen, Sakari Lassila and Miikka Maijala. In its constitutive meeting
the Board elected Heikki Bergholm as Chairman of the Board and Eero Hautaniemi
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 Hille
Korhonen as member of the committee.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 4, CHAPTER 6 OF THE
SECURITIES MARKETS ACT
In a release published on 25 March 2013, the company announced the comparable
figures for 2012 based on the new business structure.
In a release published on 9 April 2013, the company announced that as part of
EcoStream Oy's capital arrangements, Lassila & Tikanoja plc subscribed for
EcoStream Oy shares for a total of EUR 2.0 million on 8 April 2013. The
subscription price was EUR 3.00 per share. This subscription was financed
through a conversion of Lassila & Tikanoja's remaining sale price receivable
from the L&T Recoil Oy divestment, EUR 2.0 million, into EcoStream Oy shares.
Consequently, the arrangement had no direct impact on cash flow. Following this
arrangement and EcoStream Oy's other capital arrangements, Lassila & Tikanoja's
ownership in EcoStream Oy fell to approximately 16.4 per cent.
In connection with the arrangement, Lassila & Tikanoja's Board of Directors
decided on a write-down of all shares held by Lassila & Tikanoja plc to EUR
3.00 per share. As a result of this write-down, the company will record an
impairment of EUR 5.1 million on EcoStream Oy's shares for the second quarter.
After the write-down, the balance sheet value of the EcoStream shares held by
L&T will be approximately EUR 3.6 million.
The impairment will be treated as a non-recurring cost item, with no impact on
cash flow.
In a release published on 1 July 2013, the company announced that the
consideration of charges relating to L&T's overtime investigation was complete.
The police investigation and the consideration of charges were aimed at the
overtime work of 25 of L&T's property maintenance employees. On the basis of
the consideration of charges, the District Prosecutor for Helsinki has decided
to press charges against 21 former and current management staff at Lassila &
Tikanoja, including Pekka Ojanpää, President and CEO since 1 November 2011.
In a release published on 23 September 2013, in conjunction with the Capital
Markets Day, the company announced that its financial targets for the year 2016
remain unchanged. The theme of the Capital Markets Day was: “L&T moving from
re-structuring to profitable growth”.
NEAR-TERM RISKS AND UNCERTAINTIES
Economic uncertainty may cause major changes in the Environmental Services
division's secondary raw material markets and in the Industrial Services
division's demand.
Uncertainties associated with government subsidies for renewable fuels and with
their continuity could affect demand for the Renewable Energy Sources
division's services.
L&T's liabilities in EcoStream Group amount to EUR 23.3 million, of which EUR
16.4 million have an impact on cash flow. The EUR 16.4 million guarantee given
by L&T to other financiers on L&T Recoil Oy's bank loans is still in effect.
Furthermore, L&T has outstanding receivables from the EcoStream Group totalling
EUR 3.3 million, and holds EcoStream Oy shares worth EUR 3.6 million.
More detailed information on L&T's risks and risk management is available in
the Annual Report for 2012, in the report of the Board of Directors, and in the
consolidated financial statements.
OUTLOOK FOR THE REST OF THE YEAR
Full-year net sales in 2013 are expected to remain at the 2012 level. Operating
profit, excluding non-recurring items, is expected to remain at the 2012 level
or improve slightly.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-30 SEPTEMBER 2013
CONSOLIDATED INCOME STATEMENT
EUR 1 000 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
Net sales 161 909 161 216 498 512 502 194 673 985
Cost of sales -136 298 -135 695 -440 153 -446 705 -602 581
--------------------------------------------------------------------------------
Gross profit 25 611 25 521 58 359 55 489 71 404
Other operating income 1 206 614 2 952 6 173 7 708
Selling and marketing costs -3 130 -3 380 -10 534 -12 416 -16 745
Administrative expenses -3 048 -2 747 -9 285 -9 163 -12 090
Other operating expenses -620 -379 -1 667 -1 075 -1 584
Impairment, non-current assets 0 -5 027 -302 -302
Impairment, goodwill and other
intangible assets
--------------------------------------------------------------------------------
Operating profit 20 019 19 629 34 798 38 706 48 391
Finance income 102 255 333 758 860
Finance costs -1 234 -823 -2 463 -5 642 -6 256
--------------------------------------------------------------------------------
Profit before tax 18 887 19 061 32 668 33 822 42 995
Income tax expense -5 297 -3 770 -9 147 -6 426 -8 543
--------------------------------------------------------------------------------
Profit for the period 13 590 15 291 23 521 27 396 34 452
Attributable to:
Equity holders of the company 13 589 15 293 23 524 27 404 34 459
Non-controlling interest 1 -2 -3 -8 -7
Earnings per share for profit
attributable to the equity
holders of the company:
Basic earnings per share, EUR 0.35 0.40 0.61 0.71 0.89
Diluted earnings per share, 0.35 0.40 0.61 0.71 0.89
EUR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1 000 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
Profit for the period 13 590 15 291 23 521 27 396 34 452
Items not to be recognised through
profit or loss
Items arising from re-measurement of -189
defined benefit plans
--------------------------------------------------------------------------------
Items not to be recognised through 0 0 0 0 -189
profit or loss, total
Items pontentially to be recognised
through profit or loss
Hedging reserve, change in fair value 375 1 141 119 1 798 1 098
Revaluation reserve
Gains in the period 0 -2 -1 1 2
--------------------------------------------------------------------------------
Current available-for-sale financial 0 -2 -2 1 2
assets
Currency translation differences 642 688 -189 768 627
Currency translation differences, -6 8 -22 11 10
non-controlling interest
----------------------------------------
Items pontentially to be recognised 1 011 1 835 -94 2 578 1 737
through profit or loss, total
--------------------------------------------------------------------------------
Total comprehensive income, after tax 14 601 17 126 23 426 29 974 36 000
Attributable to:
Equity holders of the company 14 605 17 120 23 451 29 971 35 997
Non-controlling interest -5 6 -25 3 3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1 000 9/2013 9/2012 12/2012
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 120 057 120 212 120 189
Customer contracts arising from acquisitions 5 733 8 241 7 880
Agreements on prohibition of competition 727 2 181 1 810
Other intangible assets arising from business 41 62 57
acquisitions
Other intangible assets 7 958 8 590 8 494
--------------------------------------------------------------------------------
134 516 139 286 138 430
Property, plant and equipment
Land 3 738 4 140 3 844
Buildings and constructions 49 889 47 579 52 393
Machinery and equipment 115 568 120 953 121 179
Other 86 87 86
Prepayments and construction in progress 3 601 5 893 2 657
--------------------------------------------------------------------------------
172 882 178 652 180 159
Other non-current assets
Available-for-sale investments 4 253 7 293 7 284
Finance lease receivables 3 746 3 706 3 608
Deferred tax assets 2 719 3 537 3 845
Other receivables 5 744 2 853 2 755
--------------------------------------------------------------------------------
16 462 17 389 17 492
Total non-current assets 323 860 335 327 336 081
Current assets
Inventories 29 326 29 696 24 884
Trade and other receivables 97 358 106 048 103 925
Derivative receivables 717 356 1 290
Prepayments 2 016 2 841 491
Current available-for-sale financial assets 0 2 400 2 499
Cash and cash equivalents 22 094 9 326 12 083
--------------------------------------------------------------------------------
Total current assets 151 511 150 667 145 172
TOTAL ASSETS 475 371 485 994 481 253
--------------------------------------------------------------------------------
EUR 1 000 9/2013 9/2012 12/2012
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the company
Share capital 19 399 19 399 19 399
Share premium reserve
Other reserves -816 98 -743
Unrestricted equity reserve 6 103 29 381 29 381
Retained earnings 184 273 150 227 150 233
Profit for the period 23 524 27 404 34 459
-------------------------------------------------------------------------------
232 483 226 509 232 729
Non-controlling interest 249 274 274
-------------------------------------------------------------------------------
Total equity 232 732 226 783 233 003
Liabilities
Non-current liabilities
Deferred tax liabilities 31 116 30 586 31 313
Retirement benefit obligations 899 665 672
Provisions 4 068 2 835 4 304
Borrowings 39 898 67 575 57 961
Other liabilities 858 970 942
----------------------------------------------------- -----------------
76 839 102 631 95 192
---------
Current liabilities
Borrowings 47 493 46 431 38 915
Trade and other payables 117 689 110 321 112 880
Derivative liabilities 491 -482 1 129
Tax liabilities 2 14 14
Provisions 125 296 120
-------------------------------------------------------------------------------
165 800 156 580 153 058
Total liabilities 242 639 259 211 248 250
TOTAL EQUITY AND LIABILITIES 475 371 485 994 481 253
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1 000 9/2013 9/2012 12/2012
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 23 521 27 396 34 452
Adjustments
Income tax expense 9 147 6 426 8 543
Depreciation, amortisation and impairment 36 545 32 880 43 642
Finance income and costs 2 130 4 883 5 395
Gain on sale of shares -1 066 -4 181 -4 181
Other -575 -235 1 603
--------------------------------------------------------------------------------
Net cash generated from operating activities before 69 702 67 169 89 454
change in working capital
Change in working capital
Change in trade and other receivables 849 -16 635 -10 574
Change in inventories -4 436 -4 934 -121
Change in trade and other payables 4 097 15 137 17 096
--------------------------------------------------------------------------------
Change in working capital 510 -6 432 6 401
Interest paid -2 461 -3 529 -5 070
Interest received 340 686 830
Income tax paid -6 985 -8 151 -11 127
--------------------------------------------------------------------------------
Net cash from operating activities 61 106 49 743 80 488
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of -807 -2 498
cash acquired
Proceeds from sale of subsidiaries and businesses, 7 820 7 820
net of sold cash
Purchases of property, plant and equipment and -19 318 -29 021 -40 659
intangible assets
Proceeds from sale of property, plant and equipment 1 066 519 2 826
and intangible assets
Purchases of available-for-sale investments
Change in other non-current receivables -2 988 462 560
Proceeds from sale of available-for-sale investments
Dividends received 1 1 1
--------------------------------------------------------------------------------
Net cash used in investing activities -21 239 -21 026 -31 950
Cash flows from financing activities
Change in short-term borrowings 8 002 4 133 -5 781
Proceeds from long-term borrowings 10 200 10 200
Repayments of long-term borrowings -17 052 -18 202 -25 254
Dividends paid and other asset distribution -23 197 -21 254 -21 254
Repurchase of own shares
--------------------------------------------------------------------------------
Net cash generated from financing activities -32 247 -25 123 -42 089
EUR 1 000 9/2013 9/2012 12/2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in liquid assets 7 620 3 594 6 449
Liquid assets at beginning of period 14 582 8 069 8 069
Effect of changes in foreign exchange rates -108 63 64
Change in fair value of current available-for-sale
investments
--------------------------------------------------------------------------------
Liquid assets at end of period 22 094 11 726 14 582
Liquid assets
EUR 1 000 9/2013 9/2012 12/2012
--------------------------------------------------------------------------------
Cash and cash equivalents 22 094 9 326 12 083
Available-for-sale financial assets 2 400 2 499
--------------------------------------------------------------------------------
Total 22 094 11 726 14 582
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR 1 Share Share Cur-re Reva-l Hedgin Investe Re-tain Equity
Non-co Total
000 capita premiu ncy uation g d ed attribu
ntroll equity
l m transl reserv reserv unrestr earning table
ing
reserv a-tion e e ic-ted s to
intere
e differ equity equity
st
-ences reserve holders
of the
company
--------------------------------------------------------------------------------
----------
Equity 19 399 0 -785 2 41 29 381 184 692 232 729
274 233 003
at
1.1.2
013
Amendm -189 -189
-189
ent in
IAS19
--------------------------------------------------------------------------------
----------
Equity 19 399 0 -785 2 41 29 381 184 503 232 540
274 232 814
at
1.1.2
013
Expens -57 -530 -587
-587
e
recog
nition
of
share
-based
benef
its
Capita -23 221 299 -22 922
-22 922
l
repay
ment
Total -189 -2 118 23 524 23 451
-25 23 426
compr
ehensi
ve
incom
e
Other 1 1
1
diffe
rences
--------------------------------------------------------------------------------
----------
--------------------------------------------------------------------------------
----------
Equity 19 399 0 -974 0 159 6 103 207 797 232 483
249 232 732
at
30.9.
2013
Equity 19 399 0 -1 412 0 -1 057 50 658 150 085 217 673
271 217 944
at
1.1.2
012
Amendm 93 93
93
ent in
IAS19
--------------------------------------------------------------------------------
----------
Expens 120 120
120
e
recog
nition
of
share
-based
benef
its
Capita -21 277 22 -21 255
-21 255
l
repay
ment
Total 768 1 1 798 27 404 29 971
3 29 974
compr
ehensi
ve
incom
e
--------------------------------------------------------------------------------
----------
--------------------------------------------------------------------------------
----------
Equity 19 399 0 -644 1 741 29 381 177 724 226 602
274 226 876
at
30.9.
2012
KEY FIGURES
7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
Earnings per share, EUR 0.35 0.40 0.61 0.71 0.89
Earnings per share, diluted, EUR 0.35 0.40 0.61 0.71 0.89
Cash flows from operating activities 0.43 0.47 1.58 1.29 2.08
per share, EUR
EVA, EUR million 15.0 13.8 19.3 20.2 24.1
Capital expenditure, EUR 1000 7 068 8 432 23 724 36 265 49 385
Depreciation, amortisation and 10 427 10 757 36 545 32 880 43 641
impairment, EUR 1000
Equity per share, EUR 6.01 5.85 6.01
Return on equity, ROE, % 13.5 16.4 15.3
Return on invested capital, ROI, % 14.4 15.2 14.4
Equity ratio, % 50.2 47.5 49.4
Gearing, % 28.1 45.1 35.3
Net interest-bearing liabilities, EUR 65 297 102 281 82 294
1000
Average number of employees in 8 298 8 504 8 399
full-time equivalents
Total number of full-time and 9 017 9 101 8 962
part-time employees at end of period
Number of outstanding shares adjusted
for issues, 1000 shares
average during the period 38 703 38 687 38 688
at end of period 38 707 38 692 38 692
average during the period, diluted 38 729 38 689 38 701
ACCOUNTING POLICIES
This interim report release is in compliance with IAS 34 standard. The same
accounting policies as in the annual financial statements for the year 2012
have been applied. The following new, revised or amended IFRS standards and
IFRIC interpretations that have become effective in 2013 have not had an impact
on the financial statements:
- IAS 19 (Amendment) Employee Benefits
Key changes: The amendment eliminates the use of the 'corridor'approach. The
definition of estimated return on funded defined benefit plan assets will
change. Financial cost is determined on the net assets (included in the
obligation and in the plan). Impact on statement of financial position on 31
December 2012 and statement of comprehensive income for the period 1 January
2012-31 December 2012 EUR 189 thousand.
- IFRS 13 Fair Value Measurement
The new standard sets out the requirement to determine fair value and to
disclose related information in the financial statements; the new standard also
includes a definition of fair value. The use of fair value is not extended, but
the standard offers guidelines for value definition when another standard
requires or permits fair value measurements. IFRS 13 extends the disclosurerequirement for assets measured at fair value not included in financial assets.
The EU has not yet approved the new standard for application. The new standard
is not expected to have a material impact on consolidated financial statements.
- IFRS 7 Financial Instruments: Disclosures - Offsetting Financial Assets and
Financial Liabilities
The amendment includes more extensive disclosure requirements; entities are
required to disclose numerical information on financial assets presented in net
amount in the statement of financial position, and on financial assets subject
to master netting arrangements or similar agreements, even if presented in
gross amount in the statement of financial position. The amendment will be
adopted for application in the 2013 financial statements. The required
disclosures must be presented retrospectively. The amendment has not yet been
approved for application in the EU. The amendment does not have a material
impact on the consolidated financial statements. The preparation of financial
statements in accordance with IFRS requires the management to make estimates
and assumptions that affect the carrying amounts on the balance sheet date for
assets and liabilities and the amounts of revenues and expenses. In addition,
the management makes judgements when making decisions
on application of accounting policies. Actual results may differ from the
estimates and assumptions.
The interim report has not been audited.
SEGMENT INFORMATION
Net sales
7-9/201 7-9/201
3 2
--------- -------------
EUR 1 000 Externa Inter-d Total Externa Inter-d Total Total net
l ivision l ivision sales,
change %
--------------------------------------------------------------------------------
Environmenta 64 852 581 65 433 65 312 1 076 66 388 -1.4
l Services
--------- -------------
Industrial 19 939 994 20 933 17 221 924 18 145 15.4
Services
--------- -------------
Facility 70 581 1 064 71 645 71 702 1 006 72 708 -1.5
Services
--------- -------------
Renewable 6 537 893 7 430 6 981 996 7 977 -6.9
Energy
Sources
--------- -------------
Eliminations -3 532 -3 532 -4 002 -4 002
--------------------------------------------------------------------------------
L&T total 161 909 0 161 909 161 216 0 161 216 0.4
--------- -------------
1-9/201 1-9/201
3 2
--------- -------------
EUR 1 000 Externa Inter-d Total Externa Inter-d Total Total net
l ivision l ivision sales,
change %
--------------------------------------------------------------------------------
Environmenta 189 653 2 578 192 231 196 855 4 136 200 991 -4.4
l Services
--------- -------------
Industrial 51 927 2 738 54 665 48 798 2 428 51 226 6.7
Services
--------- -------------
Facility 217 681 3 155 220 836 221 924 2 780 224 704 -1.7
Services
--------- -------------
Renewable 39 251 2 940 42 191 34 617 3 043 37 660 12.0
Energy
Sources
--------- -------------
Eliminations -11 411 -11 411 -12 387 -12 387
--------------------------------------------------------------------------------
L&T total 498 512 0 498 512 502 194 0 502 194 -0.7
--------- -------------
1-12/2012
EUR 1 000 External Inter-division Total
-----------------------------------------------------------
Environmental Services 259 791 5 870 265 661
Industrial Services 66 863 3 133 69 996
Facility Services 295 451 4 042 299 493
Renewable Energy Sources 51 880 4 067 55 947
Eliminations -17 112 -17 112
-----------------------------------------------------------
L&T total 673 985 0 673 985
Operating profit
EUR 1 000 7-9/ % 7-9/ % 1-9/ % 1-9/ % 1-12/ %
2013 2012 2013 2012 2012
--------------------------------------------------------------------------------
Environmen 11 888 18.2 11 019 16.6 27 171 14.1 27 659 13.8 34 251 12.9
tal
Services
Industrial 2 281 10.9 1 789 9.9 3 657 6.7 2 731 5.3 3 892 5.6
Services
Facility 6 745 9.4 7 843 10.8 10 004 4.5 10 464 4.7 12 980 4.3
Services
Renewable -203 -2.7 -384 -4.8 858 2.0 -330 -0.9 -61 -0.1
Energy
Sources
Group -692 -638 -6 892 -1 818 -2 671
admin.
and other
--------------------------------------------------------------------------------
L&T total 20 019 12.4 19 629 12.2 34 798 7.0 38 706 7.7 48 391 7.2
Finance -1 132 -568 -2 130 -4 884 -5 396
costs,
net
--------------------------------------------------------------------------------
Profit 18 887 19 061 32 668 33 822 42 995
before
tax
Other segment information
EUR 1 000 9/2013 9/2012 12/2012
---------------------------------------------------
Assets
Environmental Services 217 333 235 573 228 457
Industrial Services 74 203 81 507 81 573
Facility Services 112 483 108 542 105 718
Renewable Energy Sources 30 811 30 565 30 179
Group admin. and other 7 477 9 847 9 853
Unallocated assets 33 064 19 960 25 473
---------------------------------------------------
L&T total 475 371 485 994 481 253
Liabilities
Environmental Services 45 954 42 914 42 381
Industrial Services 21 381 17 771 18 687
Facility Services 47 274 45 902 50 073
Renewable Energy Sources 7 397 6 662 6 094
Group admin. and other 1 349 1 424 1 378
Unallocated assets 119 284 144 538 129 637
---------------------------------------------------
L&T total 242 639 259 211 248 250
EUR 1 000 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2013 2012 2013 2012 2012
---------------------------------------------------------------------
Capital expenditure
Environmental Services 3 902 2 974 11 259 11 029 16 149
Industrial Services 714 1 916 2 299 6 415 11 272
Facility Services 2 319 3 455 7 860 11 697 14 727
Renewable Energy Sources 86 43 168 373 486
Group admin. and other 47 44 2 138 6 751 6 751
---------------------------------------------------------------------
L&T total 7 068 8 432 23 724 36 265 49 385
Depreciation and amortisation
Environmental Services 5 413 5 987 16 472 18 785 24 690
Industrial Services 1 648 1 854 4 995 5 174 7 084
Facility Services 3 299 2 842 9 825 8 403 11 276
Renewable Energy Sources 61 73 213 211 281
Group admin. and other 6 1 13 5 9
---------------------------------------------------------------------
L&T total 10 427 10 757 31 518 32 578 43 340
Impairment
Environmental Services 302 302
Group admin. and other 5 027
---------------------------------------------------------------------
---------------------------------------------------------------------
L&T total 0 0 5 027 302 302
INCOME STATEMENT BY QUARTER
EUR 1 000 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2013 2013 2013 2012 2012 2012 2012
--------------------------------------------------------------------------------
Net sales
Environmental 65 433 66 597 60 201 64 670 66 388 69 136 65 467
Services
Industrial 20 933 20 002 13 730 18 770 18 145 20 158 12 923
Services
Facility Services 71 645 73 395 75 796 74 789 72 708 72 376 79 620
Renewable Energy 7 430 12 991 21 770 18 287 7 977 12 099 17 584
Sources
Group admin. and
other
Inter-division -3 532 -4 103 -3 776 -4 725 -4 002 -4 077 -4 308
net sales
--------------------------------------------------------------------------------
L&T total 161 909 168 882 167 721 171 791 161 216 169 692 171 286
Operating profit
Environmental 11 888 9 059 6 224 6 592 11 019 12 368 4 272
Services
Industrial 2 281 1 895 -519 1 161 1 789 2 199 -1 257
Services
Facility Services 6 745 2 830 429 2 516 7 843 1 025 1 596
Renewable Energy -203 94 967 269 -384 -733 787
Sources
Group admin. and -692 -5 397 -803 -853 -638 -715 -465
other
--------------------------------------------------------------------------------
L&T total 20 019 8 481 6 298 9 685 19 629 14 144 4 933
Operating margin
Environmental 18.2 13.6 10.3 10.2 16.6 17.9 6.5
Services
Industrial 10.9 9.5 -3.8 6.2 9.9 10.9 -9.7
Services
Facility Services 9.4 3.9 0.6 3.4 10.8 1.4 2.0
Renewable Energy -2.7 0.7 4.4 1.5 -4.8 -6.1 4.5
Sources
--------------------------------------------------------------------------------
------------------
L&T total 12.4 5.0 3.8 5.6 12.2 8.3 2.9
Finance costs, -1 132 -590 -408 -512 -568 -3 356 -960
net
--------------------------------------------------------------------------------
Profit before tax 18 887 7 891 5 890 9 173 19 061 10 788 3 973
BUSINESS ACQUISITIONS
In January-September 2013 Lassila & Tikanoja made no business acquisitions.
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 1 000 1-9/2013 1-9/2012 1-12/2012
---------------------------------------------------------------------
Carrying amount at beginning of period 138 430 144 489 144 489
Business acquisitions 433 1 110
Other capital expenditure 1 853 1 556 2 322
Disposals -1 685 -1 957
Amortisation and impairment -5 283 -6 193 -8 023
Transfers between items
Exchange differences -484 686 489
---------------------------------------------------------------------
Carrying amount at end of period 134 516 139 286 138 430
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1 000 1-9/2013 1-9/2012 1-12/2012
---------------------------------------------------------------------
Carrying amount at beginning of period 180 159 207 522 207 522
Business acquisitions 515 2 438
Other capital expenditure 19 870 27 056 36 810
Disposals -688 -30 078 -31 258
Depreciation and impairment -26 235 -26 687 -35 619
Transfers between items
Exchange differences -224 324 266
---------------------------------------------------------------------
Carrying amount at end of period 172 882 178 652 180 159
CAPITAL COMMITMENTS
EUR 1 000 1-9/2013 1-9/2012 1-12/2012
-----------------------------------------------------------------------
Intangible assets 0 0 109
Property, plant and equipment 5 101 4 836 1 953
-----------------------------------------------------------------------
Total 5 101 4 836 2 062
The Group's share of capital commitments
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1 000 1-9/2013 1-9/2012 1-12/2012
------------------------------------------------------
Sales 939 939
Other operating income 24
Interest income 24 391
Non-current receivables 391
Capital loan receivable 0
Current receivables 0
Trade receivables 0
Loan receivables 0 0
FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
EUR 1 Financial Loans Availab Financi Deriva Carryin Fair Fair
000 assets and and le-for- al tives g values value liabilitie other sale liabili under amounts by hierar
s at fair receiva financi ties hedge by balance chy
value bles al measure accoun balance sheet level
through assets d at ting sheet item under
profit or amortis item IFRS 7
loss ed cost
--------------------------------------------------------------------------------
Non-cur
rent
financ
ial
assets
Availab 4 251 4 251 4 251 3
le-for-
sale
invest
ments
Finance 3 746 3 746 3 930
lease
receiv
ables
Other 5 743 5 743 5 743
receiv
ables
Current
financ
ial
assets
Trade 78 493 78 493 78 493
and
other
receiv
ables
Derivat 716 716 716 2
ive
receiv
ables
Availab 2
le-for-
sale
financ
ial
assets
Cash 22 093 22 093 22 093
and
cash
equiva
lents
--------------------------------------------------------------------------------
Total 110 075 4 251 0 716 115 042 115 226
financ
ial
assets
Non-cur
rent
financ
ial
liabil
ities
Borrowi 39 898 39 898 40 060
ngs
Other 540 540 540
liabil
ities
Current
financ
ial
liabil
ities
Borrowi 47 494 47 494
ngs
Trade 54 454 54 454
and
other
payabl
es
Derivat 491 491 491 2
ive
liabil
ities
--------------------------------------------------------------------------------
Total 142 386 491 142 877 41 091
financ
ial
liabil
ities
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1 000 9/2013 9/2012 12/2012
---------------------------------------------------------------------------
Mortgages on rights of tenancy 186 186 186
Company mortgages 583 460 583
Other securities 180 187 178
Bank guarantees required for environmental permits 8 712 6 255 6 483
Other securities are security deposits.
Off balance sheet liabilities
Lassila & Tikanoja plc has given a guarantee for a share of 50 percent of L&T
Recoil Oy's financial
liabilities.
The guarantee is valid no later than the maturity date of the liabilities on 31
August 2014.
The financial liabilities of L&T Recoil totalled EUR 32.8 million on 30
September 2013.
Operating lease liabilities
EUR 1 000 9/2013 9/2012 12/2012
--------------------------------------------------------------------------------
Maturity not later than one year 4 946 6 117 5 556
Maturity later than one year and not later than five 5 599 8 678 8 377
years
Maturity later than five years 2 146 2 387 2 274
--------------------------------------------------------------------------------
Total 12 691 17 182 16 206
Liabilities associated with derivative agreements
Interest rate swaps
EUR 1 000 9/2013 9/2012 12/2012
--------------------------------------------------------------------------------
Nominal values of interest rate and currency swaps*
Maturity not later than one year 17 109 14 229
Maturity later than one year and not later than five 19 539 28 940
years
Maturity later than five years 1 818 2 727
--------------------------------------------------------------------------------
Total 38 466 0 45 896
Fair value -491 -1 129
Nominal value of interest rate swaps**
Maturity not later than one year 4 000 0
Maturity later than one year and not later than five 12 000 0
years
Maturity later than five years 0
--------------------------------------------------------------------------------
Total 0 16 000 0
Fair value -223 0
* The interest rate 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. The fair values
of the swap contracts are based on the market data at the balance sheet date.
** Hedge accounting under IAS 39 has not been applied to these interest rate
swaps. Changes in fair values have been recognised in finance income and costs.
Commodity derivatives
metric tonnes 9/2013 9/2012 12/2012
--------------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 4524 3 816 5 136
Maturity later than one year and not later than five 0 636 660
years
--------------------------------------------------------------------------------
Total 4 524 4 452 5 796
Fair value, EUR 1000 16 356 136
Commodity derivative contracts were concluded, for hedging of future diesel oil
purchases. IAS 39 -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 forwards
EUR 1 000 9/2013 9/2012 12/2012
---------------------------------------------------------
Volume of forward contracts
Maturity not later than one year 0 1 099 775
Fair value 0 -6 4
Hedge accounting under IAS 39 has not been applied to forward contracts.
Changes in fair values have been recognised in finance income and costs.
Cross currency interest rate swaps
EUR 1 000 9/2013 9/2012 12/201
2
--------------------------------------------------------------------------------
Maturity of cross currency interest rate swaps under
hedge accounting
Maturity not later than one year 11 200 12 444 12 800
Maturity later than one year and not later than five 12 267 31 082 16 667
years
--------------------------------------------------------------------------------
Total 23 467 43 526 29 467
Fair value, EUR 1 000 700 712 1 150
The contracts are used to hedge cash flow related to foreign currency floating
rate loans. 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 0.7 million negative.
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 2012: 7.1%
WACC 2013: 6.5%
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, 22 October 2013
LASSILA & TIKANOJA PLC
Board of Directors
Pekka Ojanpää
President and CEO
For additional information please contact:
Pekka Ojanpää, President and CEO, tel. +358 10 636 2810 or
Timo Leinonen, CFO, tel. +358 400 793 073.
Lassila & Tikanoja is a service company that is transforming the 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 to save the environment.
Together, we create well-being and jobs. With operations in Finland, Sweden,
Latvia and Russia, L&T employs 9,000 persons. Net sales in 2012 amounted to EUR
674.0 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com
© 2024 Nasdaq, Inc. All Rights Reserved |