2011-07-26 07:00:00 CEST
2011-07-26 07:00:08 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January - 30 June 2011
Helsinki, Finland, 2011-07-26 07:00 CEST (GLOBE NEWSWIRE) --
-- Net sales for the second quarter EUR 162.2 million (EUR 149.0 million);
operating profit EUR 8.9 million (EUR 8.8 million); operating profit
excluding non-recurring items EUR 9.7 million (EUR 11.8 million); earnings
per
share EUR 0.19 (EUR 0.14)
-- Net sales for January-June EUR 321.7 million (EUR 302.9 million); operating
profit EUR 15.3 million (EUR 15.4 million); operating profit excluding
non-recurring items EUR 16.5 million (EUR 19.6 million); earnings per share
EUR 0.29 (EUR 0.25)
-- Full-year net sales will grow slightly from 2010 and operating profit
excluding non-recurring items is expected to remain at the 2010 level.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Second quarter
Lassila & Tikanoja's net sales for the second quarter increased by 8.8% to EUR
162.2 million (EUR 149.0 million). Operating profit was EUR 8.9 million (EUR
8.8 million), representing 5.5% (5.9%) of net sales, and operating profit
excluding non-recurring items was EUR 9.7 million (EUR 11.8 million). Earnings
per share were EUR 0.19 (EUR 0.14).
With the exception of Renewable Energy Sources, all divisions reported net
sales growth, half of this growth being organic. Demand for Environmental
Services increased and the work load of Property Maintenance remained healthy.
Profitability weakened from the comparison period due to a temporary rise in
waste disposal costs and an increase in traffic fuel prices. A non-scheduled
maintenance shutdown at L&T Recoil's plant eroded profitability. Three
significant business acquisitions were concluded in the second quarter, which
involved integration costs. In addition, non-recurring restructuring costs of
EUR 0.8 million were recorded for the quarter.
The income tax rate for the quarter decreased following the Administrative
Court's decision on the tax deductibility of dissolution loss write-off; as a
result, EUR 1.6 million of deferred tax liabilities were recognised as income.
Consequently, earnings per share improved by EUR 0.04 per share.
January-June
Lassila & Tikanoja's net sales for January-June amounted to EUR 321.7 million
(EUR 302.9 million); an increase of 6.2%. Operating profit was EUR 15.3 million
(EUR 15.4 million), representing 4.8% (5.1%) of net sales, and operating profit
excluding non-recurring items was EUR 16.5 million (EUR 19.6 million). Earnings
per share were EUR 0.29 (EUR 0.25).
Net sales growth could be attributed to the higher demand for Environmental
Services, the healthy work load of Property Maintenance, and the acquisitions
made in the second quarter. In the first half of the year, more than half of
the growth was organic. Meanwhile, the sale of wood-based fuels failed to reach
the comparison period's level due to a suspension in the payment of electricity
production subsidy in the first quarter and the tough competition.
Higher salary, subcontracting and diesel oil costs eroded profitability in the
first half, while in the second quarter, performance was also affected by the
temporary rise in waste disposal costs as well as the integration of business
acquisitions.
In the comparison period, non-recurring costs of EUR 3.0 million were recorded
for the discontinuation of the wood pellet business.
Financial summary
4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2011 2010 % 2011 2010 % 2010
--------------------------------------------------------------------------------
Net sales, EUR million 162.2 149.0 8.8 321.7 302.9 6.2 598.2
--------------------------------------------------------------------------------
Operating profit excluding 9.7 11.8 -17.5 16.5 19.6 -15.9 45.5
non-recurring items, EUR
million*
------------------------------ ------
Operating profit, EUR million 8.9 8.8 1.2 15.3 15.4 -0.4 40.2
------------------------------ ------
Operating margin, % 5.5 5.9 4.8 5.1 6.7
------------------------------ ------
Profit before tax, EUR 7.7 7.8 -1.8 13.1 13.4 -2.4 36.0
million
------------------------------ ------
Earnings per share, EUR 0.19 0.14 35.7 0.29 0.25 16.0 0.68
------------------------------ ------
EVA, EUR million 1.9 1.2 58.3 1.7 0.1 10.1
--------------------------------------------------------------------------------
* Breakdown of operating profit excluding non-recurring items is presented
below the division reviews.
NET SALES AND FINANCIAL PERFORMANCE BY DIVISION
Environmental Services
Second quarter
The division's net sales for the second quarter increased by 10.5% to EUR 83.5
million (EUR 75.6 million). Operating profit totalled EUR 9.2 million (EUR 10.1
million) and operating profit excluding non-recurring items was EUR 9.2 million
(EUR 10.1 million).
The division's growth was primarily organic. Net sales grew particularly in
waste management and process cleaning thanks to larger waste volumes and
maintenance shutdown-related work. Similarly, the volumes of secondary raw
materials grew from the comparison period and prices remained at a healthy
level. The acquisition of Papros Oy, which was completed during the quarter,
strengthened the division's position in the recycled fibre markets.
The rising costs of waste transport and final disposal as well as the
non-scheduled maintenance shutdown at the L&T Recoil plant undermined the
division's profitability. The catalyst change in June required a prolonged
shutdown and kept production at a standstill for almost a month, which is why
the joint venture's result was clearly negative. The technical reliability of
the plant will be improved in connection with another maintenance-related
shutdown in September.
Net sales generated by the division's international operations remained
unchanged but profitability declined slightly from the comparison period.
During the quarter, several comprehensive service agreements were concluded in
the retail trade sector. The quarter also saw the successful market launch of a
new Managreen service model, which offers customers the ability to manage their
environmental management agreements and the related network partners.
January-June
The Environmental Services division's net sales for January-June amounted to
EUR 156.0 million (EUR 140.2 million), showing an increase of 11.2%. Operating
profit totalled EUR 13.4 million (EUR 14.5 million) and operating profit
excluding non-recurring items was EUR 13.4 million (EUR 14.9 million).
The division's net sales growth was primarily organic and could be attributed
to the growth of waste volumes and high demand for industrial cleaning
services. There was a significant rise in the demand for and volume and prices
of secondary raw materials (fibres, plastics, metals) compared to the same
period last year.
Operating rates of recycling plants were lower than planned and there was a
temporary increase in waste disposal related costs, which taxed profitability.
A steep increase in the price of diesel oil and higher production costs also
weakened the financial performance. The division had some problems adapting
process cleaning services to fluctuations in demand in the first half, but
extensive maintenance shutdown-related assignments in May-June were completed
as planned.
Although the net sales and the operating rate of the joint venture L&T Recoil's
re-refinery improved in the first half, production reliability and base oil
supply have still not reached a satisfactory level. A non-scheduled maintenance
shutdown in the second quarter resulted in a clearly negative result in the
first half.
The division's net sales and operating profit from international operations
declined slightly from the comparison period.
Cleaning and Office Support Services
Second quarter
The division's net sales for the second quarter totalled EUR 40.8 million (EUR
35.7 million); an increase of 14.2%. Operating profit totalled EUR 1.0 million
(EUR 2.2 million) and operating profit excluding non-recurring items was EUR
1.2 million (EUR 2.2 million).
Net sales in domestic operations grew from the comparison period, thanks
largely to business acquisitions (Hansalaiset). Sales of commissioned
assignments met expectations. Profitability declined from the comparison period
due to a rise in the general cost level and the integration costs associated
with the acquisitions. Due to the increased cost level, the division will
implement price hikes in the second half.
Net sales generated by international operations grew as a result of the
acquisition (Östgöta Städ) made in Sweden. Non-recurring restructuring costs of
EUR 0.2 million were recorded for Swedish operations, which limited the
operating profit.
January-June
The January-June net sales of Cleaning and Office Support Services increased by
7.5% to EUR 75.6 million (EUR 70.4 million). Operating profit totalled EUR 2.5
million (EUR 3.3 million) and operating profit excluding non-recurring items
was EUR 2.7 million (EUR 3.4 million). Net sales growth in the first half could be primarily attributed to the
acquisitions made in the second quarter. In Sweden, sales to new customers were
successful. Sales of commissioned assignments reached the set targets.
The start-up costs of new projects and higher than expected integration costs
associated with acquisitions eroded the division's profitability. In the
comparison period, the EUR 0.7 million credit loss recorded for Russian
operations restricted the operating profit.
Property Maintenance
Second quarter
The division's net sales for the second quarter increased by 9.9% to EUR 30.9
million (EUR 28.1 million). Operating profit totalled EUR 0.8 million (EUR 1.1
million) and operating profit excluding non-recurring items was EUR 0.8 million
(EUR 1.1 million).
All services, damage repair services in particular, were able to grow their net
sales from the previous year. The work load of maintenance services for
technical systems also remained healthy. Nonetheless, the division's operating
profit weakened from the comparison period due to higher production costs. Due
to the increase in cost level, the division will implement price hikes in the
second half.
January-June
The division's net sales for January-June were up by 7.5% to EUR 69.8 million
(EUR 64.9 million). Operating profit totalled EUR 2.7 million (EUR 3.9 million)
and operating profit excluding non-recurring items was EUR 2.7 million (EUR 4.0
million).
The division's net sales grew thanks to higher demand for maintenance services
for technical systems and a stronger work load of damage repair services.
The decrease in the division's operating profit could be attributed to the rise
in production costs and higher subcontracting and overtime costs. The
profitability of commissioned assignments was weaker than a year earlier.
Renewable Energy Sources
Second quarter
Second quarter net sales of Renewable Energy Sources (L&T Biowatti) were down
by 20.6% to EUR 9.6 million (EUR 12.1 million). Operating loss amounted to EUR
1.3 million (a loss of EUR 3.9 million), and operating loss excluding
non-recurring items was EUR 1.3 million (a loss of EUR 0.9 million).
Net sales generated by wood-based fuels declined from the comparison period due
to intense competition. Higher collection and logistics costs also eroded
profitability.
During the quarter, several new delivery agreements were signed for future
heating seasons, and reorganisational measures were taken to cut fixed costs.
In the comparison period, the non-recurring costs of EUR 3.0 million related to
the discontinuation of the wood pellet business reduced the operating profit.
January-June
January-June net sales of Renewable Energy Sources (L&T Biowatti) were down by
20.5% to EUR 25.6 million (EUR 32.2 million). Operating loss amounted to EUR
2.0 million (a loss of EUR 4.8 million), and operating loss excluding
non-recurring items was EUR 1.6 million (a loss of EUR 1.7 million).
In the first half of the year, power plant customers did not receive any
subsidy for electricity generation from forest processed chips. As a result of
the suspension in the payment of this subsidy, several power plants replaced
forest processed chips with fossil fuels.
A reorganisation programme was launched in the first half to improve the
division's competitiveness. The programme involves fixed cost cuts and
operational efficiency enhancement measures.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
------------------------------
Operating profit 8.9 8.8 15.3 15.4 40.2
Non-recurring items:
Discontinuation of wood pellet production of 3.0 0.1 3.0 3.4
L&T Biowatti
Discontinuation of cleaning business in Moscow 0.4
Restructuring costs 0.8 1.1 1.2 1.5
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items 9.7 11.8 16.5 19.6 45.5
FINANCING
Cash flows from operating activities amounted to EUR 31.5 million (EUR 30.4
million). EUR 3.2 million was released from the working capital (EUR 2.1
million).
At the end of the period, interest-bearing liabilities amounted to EUR 154.5
million (EUR 112.6 million). In the comparison period, the assets and
liabilities of the joint venture L&T Recoil are presented as held-for-sale
assets and related liabilities, which is why the interest-bearing liabilities
associated with L&T Recoil, EUR 20.9 million, are not included in the
interest-bearing liabilities in the comparison period. Net interest-bearing
liabilities amounted to EUR 144.0 million, showing an increase of EUR 31.7
million from the beginning of the year.
Net finance costs in January-June amounted to EUR 2.2 million (EUR 2.0
million). Net finance costs were 0.7% (0.7%) of net sales. Long-term loans
totalling EUR 13.1 million will mature during the rest of the year. The average
interest rate on long-term loans (with interest-rate hedging) fell to 3.1%
(3.3%) despite the rise in general interest rate level.
The equity ratio was 42.0% (43.8%) and the gearing rate 67.6 (47.5). Liquid
assets at the end of the period amounted to EUR 10.5 million (EUR 14.4
million).
Of the EUR 50 million commercial paper programme, EUR 23.5 million (EUR 4.0
million) was in use. The EUR 15.0 million committed limit was not in use, as
was the case in the comparison period.
DIVIDEND
The Annual General Meeting held on 17 March 2011 resolved on a dividend of EUR
0.55 per share. The dividend, totalling EUR 21.3 million, was paid to the
shareholders on 29 March 2011.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 45.1 million (EUR 16.1 million), approximately
half of it consisting of acquisitions.
In the first quarter, Pentti Laurila Ky and businesses of Matti Hossi Ky and
PPT Luttinen Oy were acquired into Environmental Services. The business of
Kestosiivous Oy was acquired into Cleaning and Office Support Services and the
business of KH-Kiinteistöhuolto Oy was acquired into Property Maintenance.
In the second quarter, the Environmental Services division acquired Papros Oy
and Full House Oy. The Cleaning and Office Support Services division acquired
Savon Kiinteistöhuolto- ja Siivouspalvelu Oy, Varkauden Kiinteistönhoito ja
Siivouspalvelu Oy, Jo-Pe Huolto Oy, Östgöta Städ Ab and WTS-Palvelut Oy. The
Cleaning and Office Support Services and Property Maintenance divisions
acquired the Hansalaiset Oy group including its subsidiaries.
PERSONNEL
In January-June, the average number of employees converted into full-time
equivalents was 8,228 (7,522). The total number of full-time and part-time
employees at the end of the period was 10,389 (9,420). Of them 8,198 (7,496)
people worked in Finland and 2,191 (1,924) 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-June was 5,205,262 which
is 13.4% (8.8%) of the average number of outstanding shares. The value of
trading was EUR 68.2 million (EUR 50.8 million). The trading price varied
between EUR 11.75 and EUR 15.18. The closing price was EUR 12.08. At the end of
the period, the company held 63,305 of its own shares. The market
capitalisation excluding the shares held by the company was EUR 467.9 million
(EUR 511.3 million) at the end of the period.
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 38,735,569 shares. The average number of shares
excluding the shares held by the company totalled 38,736,835.
Share option scheme 2005
In 2005, 600,000 share option rights were issued. The exercise period for the
2005A options ended on 29 May 2009, for the 2005B options on 31 May 2010 and
for the 2005C options on 31 May 2011.
Share option scheme 2008
In 2008, 230,000 share option rights were issued, each entitling its holder to
subscribe for one share of Lassila & Tikanoja plc. 33 key persons hold 168,000
options and L&T Advance Oy 62,000 options.
The exercise price is EUR 16.20. It was reduced by EUR 0.07 as of 22 March
2011. The exercise price of the share options shall, as per the dividend record
date, be reduced by the amount of dividend which exceeds 70% of the profit per
share for the financial period to which the dividend applies. However, only
such dividends whose distribution has been agreed upon after the option pricing
period and which have been distributed prior to the share subscription are
deducted from the subscription price. The exercise price shall, however, always
amount to at least EUR 0.01. The exercise period is from 1 November 2010 to 31
May 2012.
As a result of the exercise of the outstanding 2008 share options, the number
of shares may increase by a maximum of 168,000 new shares, which is 0.4% of the
current number of shares. The 2008 options have been listed on NASDAQ OMX
Helsinki since 1 November 2010.
Share-based incentive programme
Lassila & Tikanoja plc's Board of Directors decided on 24 March 2009 on a
share-based incentive programme. The programme includes three earnings periods
one year each, of which the first one began on 1 January 2009 and the last one
ends on 31 December 2011. The basis for the determination of the reward is
decided annually. Rewards to be paid for the year 2011 will be based on the EVA
result of Lassila & Tikanoja group. They will be paid partly as shares and
partly in cash. The proportion paid in cash will cover taxes arising from the
reward. The programme covers 23 persons.
A maximum total of 180,000 Lassila & Tikanoja plc shares may be paid out on the
basis of the programme. The shares will be obtained in public trading, and
therefore the incentive programme will have no diluting effect on the share
value.
Shareholders
At the end of the financial period, the company had 9,498 (8,439) shareholders.
Nominee-registered holdings accounted for 12.2% (10.3%) of the total number of
shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 31 March 2010 authorised Lassila & Tikanoja
plc's Board of Directors to make decisions on the repurchase of the company's
own shares using the company's unrestricted equity and on the issuance of these
shares. Shares will be repurchased otherwise than in proportion to the existing
shareholdings of the company's shareholders in public trading on the NASDAQ OMX
Helsinki Ltd at the market price quoted at the time of the repurchase.
The Board of Directors is authorised to repurchase and transfer 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 and the share issue
authorisation for four years. These authorisations revoke the authorisation for
the repurchase of the company's own shares and the authorisation to issue
shares issued by the Annual General Meeting 2009.
The Board of Directors is not authorised to launch a convertible bond or share
option rights.
Own shares
On 5 April 2011, a total of 2,547 shares of Lassila & Tikanoja plc were
returned to the company free of consideration, by virtue of the terms of the
share-based incentive programme of 2009. At the end of the period, the company
held 63,305 of its own shares, representing 0.2% of all shares and votes.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 17
March 2011, adopted the financial statements for the financial year 2010 and
released the members of the Board of Directors and the President and CEO from
liability. The AGM resolved that a dividend of EUR 0.55 per share, a total of
EUR 21.3 million, as proposed by the Board of Directors, be paid for the
financial year 2010. The dividend payment date was resolved to be 29 March
2011.
The Annual General Meeting confirmed the number of the members of the Board of
Directors six. The following Board members were re-elected to the Board until
the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Matti Kavetvuo,
Hille Korhonen and Miikka Maijala. Sakari Lassila was elected as a new member
for the same term.
PricewaterhouseCoopers Oy, Authorised Public Accountants, was elected auditor.
The Annual General Meeting resolved on decreasing the share premium reserve by
EUR 50,672,564.52 by transferring all the funds in the share premium reserve to
the unrestricted equity reserve. The resolution was not registered at the
appointed time and therefore the arrangement cannot be implemented.
The resolutions of the Annual General Meeting were announced in more detail in
a stock exchange release on 17 March 2011.
BOARD OF DIRECTORS
The members of the Board of Directors are Heikki Bergholm, Eero Hautaniemi,
Matti Kavetvuo, Hille Korhonen, Sakari Lassila and Miikka Maijala. In its
constitutive meeting the Board elected Heikki Bergholm as Chairman of the Board
and Matti Kavetvuo as Vice Chairman.
From among its members, the Board elected Eero Hautaniemi as Chairman and
Sakari Lassila and Miikka Maijala as members of the audit committee. Heikki
Bergholm was elected as Chairman of the remuneration committee and Matti
Kavetvuo and Hille Korhonen as members of the committee.
CHANGES IN THE MANAGEMENT OF THE COMPANY
The Board of Directors of Lassila & Tikanoja plc has appointed Pekka Ojanpää as
President and CEO of the company. Mr Ojanpää will assume his position as
Lassila & Tikanoja's President and CEO on 13 December 2011 at the latest. Ville
Rantala, CFO of Lassila & Tikanoja, has been appointed as acting President and
CEO as of 13 June.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 7, CHAPTER 2 OF THE
SECURITIES MARKETS ACT
In a release published on 22 March 2011, the company announced that M.Sc.
(Econ.) Ville Rantala has been appointed as Managing Director of L&T Biowatti
Oy and Vice President, Renewable Energy Sources division, as of 22 March 2011.
Rantala will also continue as CFO of Lassila & Tikanoja plc. He will report to
Jari Sarjo, President and CEO. Tomi Salo, Managing Director of L&T Biowatti,
will not continue in the company.
In a release published on 5 April 2011, the company announced that a total of
2,547 shares of Lassila & Tikanoja plc have been returned to the company free
of consideration, by virtue of the terms of the share-based incentive programme
of 2009.
In a release published on 13 June 2011, the company announced that the Board of
Directors of Lassila & Tikanoja plc has appointed Pekka Ojanpää as President
and CEO. Pekka Ojanpää acts as President of Kemira's Municipal & Industrial
segment. He previously worked as President of the Kemira Performance Chemicals
business area, and has held various executive positions at Nokia Corporation.
Mr Ojanpää will assume his position as Lassila & Tikanoja's President and CEO
on 13 December 2011 at the latest.
The Board of Directors and Jari Sarjo, former President and CEO, have jointly
agreed that Sarjo will leave his position as President and CEO immediately.
Ville Rantala, CFO of Lassila & Tikanoja, has been appointed as acting
President and CEO as of 13 June.
NEAR-TERM UNCERTAINTIES
General economic uncertainty may cause radical price changes in the secondary
raw material markets of the Environmental Services division.
Succeeding in the integration of the acquisitions concluded in the second
quarter will affect the performance in the second half.
L&T Recoil's production has not fully stabilised, and any further disturbances
in the plant's production could have a negative effect on the Environmental
Services division's performance. End-product and raw material price
fluctuations would have a major effect on L&T Recoil's performance.
The government support for renewable fuels will have a positive effect on the
demand for wood-based fuels in the future, but with some delay. Changes in the
prices of emission rights will affect the competitiveness of L&T Biowatti's
wood-based fuels.
More detailed information on L&T's risks and risk management is available in
the Annual Report, in the report of the Board of Directors, and in the
consolidated financial statements.
PROSPECTS FOR THE REST OF THE YEAR
In the Environmental Services division, the outlook for the remainder of the
year is largely stable. The secondary raw material price development and the
operational reliability of L&T Recoil's plant after the maintenance shutdown in
September will affect the division's profitability. In response to the rise in
costs, the division will implement price increases.
The markets for Cleaning and Office Support Services and for Property
Maintenance are expected to grow slowly. In response to the rise in costs, the
divisions will implement price increases.
The demand for L&T Biowatti's wood-based fuels is expected to strengthen. A
dynamic electricity generation subsidy for wood-based fuels was introduced at
the beginning of July.
Full-year net sales will grow slightly from 2010 and operating profit excluding
non-recurring items is expected to remain at the 2010 level.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-30 JUNE 2011
CONSOLIDATED INCOME STATEMENT
EUR 1000 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2011 2010 2011 2010 2010
-------------------------------------------------------------------------------
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Net sales 162 186 149 014 321 660 302 916 598 193
Cost of sales -146 068 -131 123 -292 726 -271 068 -531 066
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Gross profit 16 118 17 891 28 934 31 848 67 127
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Other operating income 890 703 1 570 1 021 2 708
Selling and marketing costs -4 219 -3 470 -8 015 -6 939 -13 779
Administrative expenses -3 372 -2 888 -6 338 -5 943 -10 519
Other operating expenses -557 -849 -827 -1 964 -2 686
Impairment -2 632 -2 632 -2 632
Operating profit 8 860 8 755 15 324 15 391 40 219
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Finance income 341 310 640 648 1 053
Finance costs -1 504 -1 227 -2 867 -2 618 -5 282
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Profit before tax 7 697 7 838 13 097 13 421 35 990
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Income tax expense -421 -2 105 -1 825 -3 557 -9 786
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Profit for the period 7 276 5 733 11 272 9 864 26 204
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Attributable to:
Equity holders of the company 7 276 5 726 11 270 9 853 26 188
Non-controlling interest 7 2 11 16
Earnings per share for profit attributable to the equity holders of the company:
Basic earnings per share, EUR 0.19 0.14 0.29 0.25 0.68
Diluted earnings per share, EUR 0.19 0.14 0.29 0.25 0.68
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1000 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2011 2010 2011 2010 2010
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Profit for the period 7 276 5 733 11 272 9 864 26 204
Other comprehensive income, after tax
Hedging reserve, change in fair value -1 145 -31 -224 -226 223
Current available-for-sale investments
Gains in the period -2 -56 -4 -56 -58
Current available-for-sale investments -2 -56 -4 -56 -58
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Currency translation differences 11 345 43 1 152 792
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Other comprehensive income, after tax -1 136 258 -185 870 957
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Total comprehensive income, after tax 6 140 5 991 11 087 10 734 27 161
Attributable to:
Equity holders of the company 6 141 5 974 11 084 10 691 27 130
Non-controlling interest -1 17 3 43 31
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1000 6/2011 6/2010 12/2010
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ASSETS
Non-current assets
Intangible assets
Goodwill 123 293 112 768 113 467
Customer contracts arising from acquisitions 12 087 5 499 4 736
Agreements on prohibition of competition 12 077 10 766 10 023
Other intangible assets arising from business 258 2 212 1 229
acquisitions
Other intangible assets 13 031 11 694 13 226
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160 746 142 939 142 681
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Property, plant and equipment
Land 4 634 4 356 4 671
Buildings and constructions 79 267 43 698 78 908
Machinery and equipment 115 980 105 882 111 733
Other 84 83 85
Prepayments and construction in progress 5 097 14 741 5 303
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205 062 168 760 200 700
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Other non-current assets
Available-for-sale investments 613 525 598
Finance lease receivables 3 433 3 992 3 547
Deferred tax assets 4 566 2 663 3 924
Other receivables 3 288 527 3 401
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11 900 7 707 11 470
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Total non-current assets 377 708 319 406 354 851
Current assets
Inventories 24 830 23 492 27 957
Trade and other receivables 96 740 81 623 85 662
Derivative receivables 772 407
Prepayments 2 646 2 050 317
Available-for-sale investments 3 299 5 995 9 895
Cash and cash equivalents 7 185 8 446 4 653
Assets held for sale 34 612
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Total current assets 135 472 156 218 128 891
TOTAL ASSETS 513 180 475 624 483 742
EUR 1000 6/2011 6/2010 12/2010
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EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the company
Share capital 19 399 19 399 19 399
Share premium reserve 50 673 50 673 50 673
Other reserves -2 274 -2 246 -2 141
Unrestricted equity reserve -15
Retained earnings 133 548 128 545 128 597
Profit for the period 11 270 9 853 26 188
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212 601 206 224 222 716
Non-controlling interest 281 290 278
-------------------------------------------------------------------------------
Total equity 212 882 206 514 222 994
Liabilities
Non-current liabilities
Deferred tax liabilities 32 157 32 723 33 718
Retirement benefit obligations 677 610 615
Provisions 2 710 2 493 2 748
Borrowings 101 456 90 011 95 563
Other liabilities 1 017 1 948 364
-------------------------------------------------------------------------------
138 017 127 785 133 008
Current liabilities
Borrowings 53 012 22 610 31 261
Trade and other payables 107 073 91 115 94 891
Derivative liabilities 1 696 1 204 1 173
Tax liabilities 24 22 15
Provisions 476 134 400
Liabilities related to assets held for sale 26 240
162 281 141 325 127 740
-------------------------------------------------------------------------------
Total liabilities 300 298 269 110 260 748
TOTAL EQUITY AND LIABILITIES 513 180 475 624 483 742
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1000 6/2011 6/2010 12/2010
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 11 272 9 864 26 204
Adjustments
Income tax expense 1 825 3 557 9 786
Depreciation, amortisation and impairment 21 823 23 022 43 937
Finance income and costs 2 227 1 970 4 229
Other -368 159 1 570
--------------------------------------------------------------------------------
Net cash generated from operating activities before 36 779 38 572 85 726
change in working capital
Change in working capital
Change in trade and other receivables -12 309 -3 101 -6 118
Change in inventories 3 127 5 735 4 874
Change in trade and other payables 12 380 -508 -918
--------------------------------------------------------------------------------
Change in working capital 3 198 2 126 -2 162
Interest paid -3 026 -1 667 -5 409
Interest received 539 479 914
Income tax paid -6 013 -9 073 -15 259
--------------------------------------------------------------------------------
Net cash from operating activities 31 477 30 437 63 810
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of -23 574 -723 -1 655
cash acquired
Proceeds from sale of subsidiaries and businesses, 199
net of sold cash
Purchases of property, plant and equipment and -20 331 -13 405 -36 003
intangible assets
Proceeds from sale of property, plant and equipment 1 724 688 3 655
and intangible assets
Purchases of available-for-sale investments -3 -74
Change in other non-current receivables 98 202 -2 673
Dividends received 1
--------------------------------------------------------------------------------
Net cash used in investing activities -42 083 -13 241 -36 550
Cash flows from financing activities
Change in short-term borrowings 17 751 4 230 5 091
Proceeds from long-term borrowings 20 000
Repayments of long-term borrowings -9 875 -12 411 -23 166
Dividends paid -21 284 -21 301 -21 301
Repurchase of own shares -1 125 -1 125
--------------------------------------------------------------------------------
Net cash generated from financing activities 6 592 -30 607 -40 501
--------------------------------------------------------------------------------
EUR 1000 6/2011 6/2010 12/2010
---------------------------------------------------------------------
---------------------------------------------------------------------
Net change in liquid assets -4 014 -13 411 -13 241
Liquid assets at beginning of period 14 548 27 583 27 583
Effect of changes in foreign exchange rates -50 272 206
Liquid assets at end of period 10 484 14 444 14 548
---------------------------------------------------------------------
Liquid assets
EUR 1000 6/2011 6/2010 12/2010
---------------------------------------------------------------------
Cash and cash equivalents 7 185 8 449 4 653
Money market investments 3 299 5 995 9 895
---------------------------------------------------------------------
Total 10 484 14 444 14 548
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR 1000 Share Share Revalu Un-restr Retaine Equity Non-co Total
capita premiu -ation icted d attribu ntroll equity
l m and equity earning table ing
reserv other reserve s to intere
e reserv equity st
es holders
of the
company
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at 19 399 50 673 -2 141 0 154 785 222 716 278 222 994
1.1.2011
Expense 90 90 90
recognitio
n of
share-base
d benefits
Repurchase -37 -37 -37
of own
shares
Dividends -21 290 -21 290 -21 290
paid
Transfer 52 -15 37 37 37
from
revaluatio
n reserve
Total -185 11 270 11 085 3 11 088
comprehens
ive income
------------ --------
Equity at 19 399 50 673 -2 274 -15 144 855 212 601 281 212 882
30.6.2011
--------------------------------------------------------------------------------
Equity at 19 399 50 673 -3 084 0 150 014 217 002 247 217 249
1.1.2010
Expense 333 333 333
recognitio
n of
share-base
d benefits
Repurchase -489 -489 -489
of own
shares
Dividends -21 313 -21 313 -21 313
paid
Total 838 9 853 10 691 43 10 734
comprehens
ive income
--------------------------------------------------------------------------------
---------------- ----------
Equity at 19 399 50 673 -2 246 0 138 398 206 224 290 206 514
30.6.2010
------------ -------- ----------------------------------
KEY FIGURES
4-6/ 4-6/ 1-6/ 1-6/ 1-12/
2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR * 0.19 0.14 0.29 0.25 0.68
Earnings per share, diluted, EUR * 0.19 0.14 0.29 0.25 0.68
Cash flows from operating activities 0.54 0.41 0.81 0.77 1.65
per share, EUR
EVA, EUR million 1.9 1.2 1.7 0.1 10.1
Capital expenditure, EUR 1000 32 235 10 621 45 103 16 081 39 321
Depreciation, amortisation and 11 255 12 727 21 823 23 022 43 937
impairment, EUR 1000
Equity per share, EUR 5.49 5.32 5.75
Return on equity, ROE, % 10.3 9.3 11.9
Return on invested capital, ROI, % 8.9 9.1 11.6
Equity ratio, % 42.0 43.8 46.5
Gearing, % ** 67.6 47.5 50.3
Net interest-bearing liabilities, EUR 143 984 98 180 112 277
1000 **
Average number of employees in 8 228 7 522 7 835
full-time equivalents
Total number of full-time and 10 389 9 420 8 732
part-time employees at end of period
Number of outstanding shares adjusted for
issues, 1000 shares
average during the period 38 737 38 759 38 749
at end of period 38 736 38 738 38 738
average during the period, diluted 38 768 38 759 38 773
* On 22 March 2011, L&T Hankinta Ky received a favourable decision from the
Administrative Court of Helsinki regarding its complaint on the tax
deductibility of dissolution loss write-off. As a result, on 30 June 2011 the
Group recognised EUR 1.6 million worth of deferred tax liabilities as income.
Consequently, earnings per share improved by EUR 0.04 per share.
** In the comparison period 6/2010, L&T Recoil's assets are recorded as assets
held for sale and related liabilities. The EUR 20.9 million interest-bearing
liabilities associated with L&T Recoil are not included in the interest-bearing
liabilities.
ACCOUNTING POLICIES
This interim report is in compliance with IAS 34 Interim Financial Reporting
standard. The same accounting policies as in the annual financial statements
for the year 2010 have been applied. This interim report has been prepared in
accordance with the IFRS standards and interpretations as adopted by the EU.
The following amendments to standards that have become effective in 2010 have
had an impact on the interim report:
IFRS 3 (revised) Business Combinations
The revised standard continues to apply the acquisition method to business
combinations, with some significant changes. For example, all payments to
purchase a business are to be recorded at fair value at the acquisition date,
with contingent payments classified as debt subsequently re-measured through
the income statement. There is a choice on an acquisition-by-acquisition basis
to measure the non-controlling interest in the acquiree at fair value or at the
non-controlling interest's proportionate share of the acquiree's net assets.
All acquisition-related costs should be expensed.
The preparation of financial statements in accordance with IFRS require the
management to make such estimates and assumptions that affect the carrying
amounts at the balance sheet date for the assets and liabilities and the
amounts of revenues and expenses. Judgements are also made in applying the
accounting policies. Actual results may differ from the estimates and
assumptions.
The interim report has not been audited.
SEGMENT INFORMATION
Net sales
4-6/2011 4-6/2010
----------------------------------------------------------------
EUR 1000 Externa Inter- Total Externa Inter- Total Total net
l divisi l divisi sales,
on on change %
--------------------------------------------------------------------------------
Environmental 82 644 891 83 535 74 579 1 045 75 624 10.5
Services
--------- ------------
Cleaning and 40 418 366 40 784 35 395 315 35 710 14.2
Office Support
Services
--------- ------------
Property 30 324 555 30 879 27 714 376 28 090 9.9
Maintenance
--------- ------------
Renewable 8 800 800 9 600 11 326 771 12 097 -20.6
Energy Sources
--------- ------------
Eliminations -2 612 -2 612 -2 507 -2 507
--------------------------------------------------------------------------------
L&T total 162 186 0 162 186 149 014 0 149 014 8.8
--------- ------------
1-6/2011 1-6/2010
----------------------------------------------------------------
EUR 1000 Externa Inter- Total Externa Inter- Total Total net
l divisi l divisi sales,
on on change %
--------------------------------------------------------------------------------
Environmental 154 164 1 800 155 964 138 099 2 134 140 233 11.2
Services
--------- ------------
Cleaning and 74 967 673 75 640 69 776 600 70 376 7.5
Office Support
Services
--------- ------------
Property 68 536 1 282 69 818 64 255 692 64 947 7.5
Maintenance
--------- ------------
Renewable 23 993 1 618 25 611 30 786 1 437 32 223 -20.5
Energy Sources
--------- ------------
Eliminations -5 373 -5 373 -4 863 -4 863
--------------------------------------------------------------------------------
L&T total 321 660 0 321 660 302 916 0 302 916 6.2
--------- ------------
1-12/2010
EUR 1000 External Inter-division Total
-----------------------------------------------------------------------
Environmental Services 286 260 3 771 290 031
Cleaning and Office Support Services 139 399 1 216 140 615
Property Maintenance 121 546 1 923 123 469
Renewable Energy Sources 50 988 4 118 55 106
Eliminations -11 028 -11 028
-----------------------------------------------------------------------
L&T total 598 193 0 598 193
Operating profit
EUR 4-6/ % 4-6/ % 1-6/ % 1-6/ % 1-12/ %
1000 2011 2010 2011 2010 2010
--------------------------------------------------------------------------------
Enviro 9 182 11.0 10 124 13.4 13 357 8.6 14 540 10.4 33 674 11.6
nmenta
l
Servi
ces
Cleani 1 001 2.5 2 218 6.2 2 476 3.3 3 255 4.6 7 524 5.4
ng and
Offic
e
Suppo
rt
Servi
ces
Proper 769 2.5 1 075 3.8 2 671 3.8 3 868 6.0 7 764 6.3
ty
Maint
enance
Renewa -1 325 -13.8 -3 900 -32.2 -1 976 -7.7 -4 760 -14.8 -6 553 -11.9
ble
Energ
y
Sourc
es
Group -767 -762 -1 204 -1 512 -2 190
admin
. and
other
--------------------------------------------------------------------------------
L& 8 860 5.5 8 755 5.9 15 324 4.8 15 391 5.1 40 219 6.7
T
total
-------------------------------------------------------------------------
Financ -1 163 -917 -2 227 -1 970 -4 229
e
costs
, net
--------------------------------------------------------------------------------
Profit 7 697 7 838 13 097 13 421 35 990
befor
e tax
-------------------------------------------------------------------------
Other segment information
EUR 1000 6/2011 6/2010 12/2010
--------------------------------------------------------------------------------
Assets
Environmental Services 350 779 328 831 330 963
Cleaning and Office Support 55 471 41 114 39 007
Services
Property Maintenance 40 773 34 120 38 098
Renewable Energy Sources 41 447 46 898 49 113
Group admin. and other 2 065 648 1 902
Unallocated assets 22 645 24 013 24 659
--------------------------------------------------------------------------------
L&T total 513 180 475 624 483 742
--------------------------------------------------------------------------------
Liabilities
Environmental Services 57 782 50 693 50 300
Cleaning and Office Support 30 191 26 818 25 654
Services
Property Maintenance 16 808 13 860 15 784
Renewable Energy Sources 4 284 4 673 4 835
Group admin. and other 1 598 1 166 1 193
Unallocated liabilities 189 635 171 900 162 982
--------------------------------------------------------------------------------
L&T total 300 298 269 110 260 748
--------------------------------------------------------------------------------
EUR 1000 4-6/2011 4-6/2010 1-6/2011 1-6/2010 1-12/201
0
--------------------------------------------------------------------------------
Capital expenditure
Environmental Services 16 846 8 287 25 660 12 540 31 409
Cleaning and Office Support 12 138 434 13 360 900 2 112
Services
Property Maintenance 3 033 1 740 5 664 2 249 5 074
Renewable Energy Sources 203 105 291 228 654
Group admin. and other 15 55 128 164 72
--------------------------------------------------------------------------------
L&T total 32 235 10 621 45 103 16 081 39 321
--------------------------------------------------------------------------------
Depreciation and amortisation
Environmental Services 7 620 6 897 14 999 14 017 28 558
Cleaning and Office Support 1 280 1 019 2 233 2 040 4 023
Services
Property Maintenance 1 188 1 001 2 257 1 984 4 017
Renewable Energy Sources 1 167 1 176 2 334 2 344 4 702
Group admin. and other 2 5 5
--------------------------------------------------------------------------------
L&T total 11 255 10 095 21 823 20 390 41 305
--------------------------------------------------------------------------------
Impairment
Renewable Energy Sources 2 632 2 632 2 632
--------------------------------------------------------------------------------
L&T total 2 632 2 632 2 632
--------------------------------------------------------------------------------
INCOME STATEMENT BY QUARTER
EUR 1000 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/
2011 2011 2010 2010 2010 2010 2009 2009
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
sales
Environm 83 535 72 429 73 992 75 806 75 624 64 609 71 178 72 055
ental
Service
s
Cleaning 40 784 34 856 34 580 35 659 35 710 34 666 35 686 36 338
and
Office
Support
Service
s
Property 30 879 38 939 31 596 26 926 28 090 36 857 25 829 23 746
Mainten
ance
Renewabl 9 600 16 011 15 266 7 617 12 097 20 126 17 702 10 669
e Energy
Sources
Inter-di -2 612 -2 761 -3 927 -2 238 -2 507 -2 356 -2 354 -2 069
vision
net
sales
--------------------------------------------------------------------------------
L&T 162 186 159 474 151 507 143 770 149 014 153 902 148 041 140 739
total
--------------------------------------------------------------------------------
Operatin
g profit
Environm 9 182 4 175 8 204 10 930 10 124 4 416 6 793 11 816
ental
Service
s
Cleaning 1 001 1 475 181 4 088 2 218 1 037 1 697 4 076
and
Office
Support
Service
s
Property 769 1 902 633 3 263 1 075 2 793 1 070 3 157
Mainten
ance
Renewabl -1 325 -651 -361 -1 432 -3 900 -860 -321 -1 029
e Energy
Sources
Group -767 -437 -104 -574 -762 -750 -735 -1 111
admin.
and
other
--------------------------------------------------------------------------------
L&T 8 860 6 464 8 553 16 275 8 755 6 636 8 504 16 909
total
--------------------------------------------------------------------------------
Operatin
g margin
Environm 11.0 5.8 11.1 14.4 13.4 6.8 9.5 16.4
ental
Service
s
Cleaning 2.5 4.2 0.5 11.5 6.2 3.0 4.8 11.2
and
Office
Support
Service
s
Property 2.5 4.9 2.0 12.1 3.8 7.6 4.1 13.3
Mainten
ance
Renewabl -13.8 -4.1 -2.4 -18.8 -32.2 -4.3 -1.8 -9.6
e Energy
Sources
--------------------------------------------------------------------------------
L&T 5.5 4.1 5.6 11.3 5.9 4.3 5.7 12.0
total
--------------------------------------------------------------------------------
Finance -1 163 -1 064 -987 -1 272 -917 -1 053 -1 078 -1 242
costs,
net
Profit 7 697 5 400 7 566 15 003 7 838 5 583 7 426 15 667
before
tax
--------------------------------------------------------------------------------
BUSINESS ACQUISITIONS
Business combinations in aggregate
Consideration
EUR 1000 Fair values used in
consolidation
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash 25 644
Equity instruments
Contingent consideration 1 100
--------------------------------------------------------------------------------
Total consideration transferred 26 744
--------------------------------------------------------------------------------
Indemnification asset
Fair value of equity interest held before the acquisition
Total consideration 26 744
--------------------------------------------------------------------------------
Acquisition-related costs (included in the administrative 3
expenses in the consolidated financial statements)
Recognised amounts of identifiable assets acquired and liabilities assumed
EUR 1000 Fair values used in consolidation
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Property, plant and equipment 4 019
Customer contracts 8 707
Agreements on prohibition of competition 3 313
Other intangible assets 449
Inventories 397
Trade and other receivables 5 393
Cash and cash equivalents 3 169
Total assets 25 446
---------------------------------------------------------------------------
Deferred tax liabilities 738
Trade and other payables 7 889
---------------------------------------------------------------------------
Total liabilities 8 627
---------------------------------------------------------------------------
Total identifiable net assets 16 819
Non-controlling interest
Goodwill 9 953
---------------------------------------------------------------------------
Total 26 773
---------------------------------------------------------------------------
Acquisitions by Environmental Services
-- 4 January 2011, Pentti Laurila Ky, an environmental management business
operating in the Keuruu and Multiala region in central Finland
-- 1 February 2011, the Ypäjä-based Matti Hossi Ky, a waste management and
interchangeable platform business
-- 1 March 2011, the PPT Luttinen Oy waste management business
-- 1 May 2011, Papros Oy, an environmental management company, and Full House
Oy, a company specialising in the provision of environmental management
services, both operating in the Helsinki region.
Acquisitions by Cleaning and Office Support Services
-- 1 January 2011, Kestosiivous Oy, a cleaning company operating in the
Helsinki region
-- 1 April 2011, the cleaning and property maintenance businesses of
Varkaus-based Savon Kiinteistöhuolto- ja Siivouspalvelu Oy, Varkauden
Kiinteistönhoito ja Siivouspalvelu Oy and Jo-Pe Huolto Oy
-- 1 May, Östgöta Städ Ab in Sweden, a cleaning service provider
-- 1 June 2011, WTS-Palvelut Oy, a cleaning company operating in the Tampere
region.
Acquisitions by Cleaning and Office Support Services and Property Maintenance
-- 1 April 2011, the Hansalaiset Oy group, including its subsidiaries,
providing cleaning and property maintenance services in the Helsinki,
Turku, Tampere and Oulu regions.
Acquisitions by Property Maintenance
-- 1 March 2011, the operations of KH-Kiinteistöhuolto Oy operating in the
Nurmijärvi region.
The figures for these acquired businesses are stated in aggregate, because none
of them is of material importance when considered separately. Fair values have
been determined as of the time the acquisition was realised. No business
operations have been divested as a consequence of any acquisition. All
acquisitions have been paid for in cash. With share acquisitions, L&T was able
to gain 100% of the voting rights. The conditional consideration is tied to the
transfer of the customer contracts to Lassila & Tikanoja plc, and the estimates
of the fair values of considerations were determined on the basis of
probability-weighted final acquisition price. The estimates for the conditional
consideration have changed by EUR 30 thousand between the time of acquisition
and the balance sheet date. Trade and other receivables have been recorded at
fair value at the time of acquisition. Individual acquisition prices have not
been itemised because none of them is of material importance when considered
separately.
By annual net sales, the largest acquisition was Hansalaiset Oy (EUR 10,973
thousand).
It is not possible to itemise the effects of the acquired businesses on the
consolidated net sales and profit for the period, because L&T integrates its
acquisitions into the current business operations as quickly as possible to
gain synergy benefits.
The accounting policy concerning business combinations is presented in Annual
Report under Note 2 of the consolidated financial statements and under Summary
on significant accounting policies.
CHANGES IN INTANGIBLE ASSETS
EUR 1000 1-6/2011 1-6/2010 1-12/2010
---------------------------------------------------------------------
Carrying amount at beginning of period 142 681 148 417 148 417
Business acquisitions 21 973 451 1 175
Other capital expenditure 1 593 1 468 2 944
Disposals 0 -3 472 -1 760
Amortisation and impairment -5 382 -4 519 -9 134
Transfers between items -4
Exchange differences -119 594 1 043
---------------------------------------------------------------------
Carrying amount at end of period 160 746 142 939 142 681
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1000 1-6/2011 1-6/2010 1-12/2010
---------------------------------------------------------------------
Carrying amount at beginning of period 200 700 201 651 201 651
Business acquisitions 4 468 272 500
Other capital expenditure 17 069 13 890 34 628
Disposals -756 -29 288 -1 711
Depreciation and impairment -16 441 -18 503 -34 803
Transfers between items 4
Exchange differences 22 738 431
---------------------------------------------------------------------
Carrying amount at end of period 205 062 168 760 200 700
CAPITAL COMMITMENTS
EUR 1000 1-6/2011 1-6/2010 1-12/2010
-----------------------------------------------------------------------
------------------------------
Intangible assets 100 180
Property, plant and equipment 9 244 7 267 5 106
-----------------------------------------------------------------------
Total 9 344 7 447 5 106
------------------------------
The Group's share of capital commitments 550 420 0
of joint ventures
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1000 1-6/2011 1-6/2010 1-12/2010
------------------------------------------------------
Sales 862 1 144 2 332
Other operating income 38 37 74
Interest income 466 212 505
Non-current receivables
Capital loan receivable 22 146 17 146 20 646
Current receivables
Trade receivables 2 272 35 2 375
Loan receivables 1 452 750 1 034
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1000 6/2011 6/2010 12/2010
---------------------------------------------------------------------------
------------------------
Mortgages on rights of tenancy 42 179 42 179 42 179
Company mortgages 21 460 21 460 21 460
Other securities 195 222 222
Bank guarantees required for environmental permits 5 331 3 856 4 634
Other securities are security deposits.
The Group has given no pledges, mortgages or guarantees on behalf of outsiders.
Operating lease liabilities
EUR 1000 6/2011 6/2010 12/2010
--------------------------------------------------------------------------------
------------------------
Maturity not later than one year 8 284 7 811 8 087
Maturity later than one year and not later than five 18 813 18 864 20 087
years
Maturity later than five years 4 375 5 304 4 509
--------------------------------------------------------------------------------
Total 31 472 31 979 32 683
------------------------
Liabilities associated with derivative agreements
Interest rate and foreign exchange swaps
EUR 1000 6/2011 6/2010 12/2010
--------------------------------------------------------------------------------
------------------------
Nominal values of interest rate and foreign exchange
swaps
Maturity not later than one year 18 204 4 629 11 010
Maturity later than one year and not later than five 58 520 28 471 49 355
years
Maturity later than five years 267
--------------------------------------------------------
Total 76 724 33 100 60 632
--------------------------------------------------------------------------------
Fair value -1 669 -1 379 -1 173
The interest rate and foreign exchange swaps are used to hedge cash flow
related to a floating rate loan, and hedge accounting under IAS 39 has been
applied to it. The hedges have been effective, and the changes in the fair
values are shown in the consolidated statement of comprehensive income for the
period. On the balance sheet date, the value of foreign currency loans was EUR
1.1 million positive. The fair values of the interest rate swaps are based on
the market data at the balance sheet date.
Commodity derivatives
metric tons 6/2011 6/2010 12/2010
--------------------------------------------------------------------------------
------------------------
Nominal values of diesel swaps
Maturity not later than one year 5 070 7 596
Maturity later than one year and not later than five 1 272 2 544
years
--------------------------------------------------------------------------------
Total 6 342 10 140
--------------------------------------------------------------------------------
Fair value, EUR 1000 705 400
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 derivatives
EUR 1000 6/2011 6/2010 12/2010
---------------------------------------------------------
Volume of forward contracts
Maturity not later than one year 196
Fair value 7
Hedge accounting under IAS 39 has not been applied to forward contracts.
Changes in fair values have been recognised in finance income and costs.
CALCULATION OF KEY FIGURES
Earnings per share:
profit attributable to equity holders of the parent company / adjusted average
basic number of shares
Earnings per share, diluted:
profit attributable to equity holders of the parent company / adjusted average
diluted number of shares
Cash flows from operating activities/share:
cash flow from operating activities as in the statement of cash flows /
adjusted average number of shares
EVA:
operating profit - cost calculated on invested capital (average of four
quarters)
WACC 2010: 8.7%
WACC 2011: 7.7%
Equity per share:
equity attributable to equity holders of the parent company / adjusted basic
number of shares at end of period
Return on equity, % (ROE):
(profit for the period / equity (average)) x 100
Return on investment, % (ROI):
(profit before tax + finance costs) / (total equity and liabilities -
non-interest-bearing liabilities (average)) x 100
Equity ratio, %:
equity / (total equity and liabilities - advances received) x 100
Gearing, %:
net interest-bearing liabilities / equity x 100
Net interest-bearing liabilities:
interest-bearing liabilities - liquid assets
Operating profit excluding non-recurring items:
operating profit +/- non-recurring items
Helsinki, 25 July 2011
LASSILA & TIKANOJA PLC
Board of Directors
Ville Rantala
President and CEO (acting)
For additional information please contact Ville Rantala, President and CEO
(acting), tel. +358 50 385 1442 or Keijo Keränen, Head of Treasury & IR, tel.
+358 50 385 6957.
Lassila & Tikanoja specialises in environmental management and property and
plant support services and is a leading supplier of wood-based biofuels,
recovered fuels and recycled raw materials. With operations in Finland, Sweden,
Latvia and Russia, L&T employs 10,400 persons. Net sales in 2010 amounted to
EUR 598 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com
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