2013-04-24 07:00:01 CEST
2013-04-24 07:00:12 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim Report 1 January - 31 March 2013
Helsinki, Finland, 2013-04-24 07:00 CEST (GLOBE NEWSWIRE) --
Net sales for the first quarter EUR 167.7 million (EUR 171.3 million)
Operating profit EUR 6.3 million (EUR 4.9 million)
Operating profit excluding non-recurring items EUR 6.8 million (EUR 5.0 million)
Earnings per share EUR 0.12 (EUR 0.07)
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:
“Operating profit excluding non-recurring items was in line with our
expectations, and we saw a significant improvement in our cash flow from
operating activities.
Comparable net sales remained at the previous year's level. In the first
quarter, the efficiency enhancement measures set in our strategy continued,
affecting both business operations and working capital. The financial
uncertainty affects our business volumes. We will continue to focus on
profitability improvement.”
GROUP NET SALES AND FINANCIAL PERFORMANCE
Lassila & Tikanoja's net sales for the first quarter decreased by 2.1% to EUR
167.7 million (EUR 171.3 million). Operating profit was EUR 6.3 million (EUR
4.9 million), representing 3.8% (2.9%) of net sales, and operating profit
excluding non-recurring items was EUR 6.8 million (EUR 5.0 million). Earnings
per share were EUR 0.12 (EUR 0.07).
Comparable net sales includes EUR 4.0 million worth of net sales generated by
L&T Recoil and the divested parts of the eco product business.
Operating profit grew by EUR 1.4 million from the comparison period to EUR 6.3
million.
Operating profit was reduced by the non-recurring reorganisation costs of EUR
0.5 million (EUR 0.1 million).
Financial summary
1-3/201 1-3/201 Change 1-12/201
3 2 % 2
--------------------------------------------------------------------------------
--------------------------
Net sales, EUR million 167.7 171.3 -2.1 674.0
--------------------------------------------- ---------
Operating profit excluding non-recurring 6.8 5.0 33.7 47.4
items, EUR million*
--------------------------------------------- ---------
Operating profit, EUR million 6.3 4.9 27.7 48.4
--------------------------------------------- ---------
Operating margin, % 3.8 2.9 7.2
--------------------------------------------- ---------
Profit before tax, EUR million 5.9 4.0 48.3 43.0
--------------------------------------------- ---------
Earnings per share, EUR 0.12 0.07 71.4 0.89
--------------------------------------------- ---------
EVA, EUR million 0.9 -1.5 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
The division's net sales for the first quarter were down by 8.0% to EUR 60.2
million (EUR 65.5 million). Operating profit totalled EUR 6.2 million (EUR 4.3
million) and operating profit excluding non-recurring items was EUR 6.2 million
(EUR 4.3 million).
The division's net sales fell following the slowdown in construction, which
reduced the demand for interchangeable platforms and the construction waste
recycling volumes. Meanwhile in waste management, demand has remained normal.
Recycled raw material volumes decreased in the first quarter following a
decline in retail sales.
Comparable net sales includes EUR 4.0 million worth of net sales generated by
L&T Recoil and the divested parts of the eco product business.
Profitability improved thanks to efficiency improvement measures taken in 2012.
Industrial Services
The division's net sales for the first quarter totalled EUR 13.7 million (EUR
12.9 million), showing an increase of 6.2%. Operating loss totalled EUR 0.5
million (operating loss EUR 1.3 million) and operating profit excluding
non-recurring items was EUR 0.5 million (operating loss EUR 1.3 million).
Healthy demand for process cleaning boosted net sales. The late arrival of
spring had a negative effect on the demand for sewer maintenance services and
environmental construction in the first quarter.
Although the division recorded a loss, as expected, the loss was smaller than
in the comparison period thanks to the healthy profitability in hazardous waste
recycling services.
Facility Services
The division's net sales for the first quarter were down by 4.8% to EUR 75.8
million (EUR 79.6 million). Operating profit totalled EUR 0.4 million (EUR 1.6
million) and operating profit excluding non-recurring items was EUR 0.8 million
(EUR 1.7 million).
The division's net sales declined from the comparison period due to lower
demand for damage repair services.
The decrease in net sales in technical systems services and damage repair
services, resulting from the smaller number of damage repair orders than in the
comparison period, had a negative impact on the division's profitability. The
Facility Services division is currently taking efficiency enhancement measures
designed to improve profitability. Profitability of the cleaning business
improved from the comparison period.
Renewable Energy Sources
First quarter net sales of Renewable Energy Sources (L&T Biowatti) were up by
23.8% to EUR 21.8 million (EUR 17.6 million). The division recorded an
operating profit of EUR 1.0 million (EUR 0.8 million), and an operating profit
excluding non-recurring items of EUR 1.0 million (EUR 0.8 million).
There was a significant improvement in the division's net sales from the
comparison period, due to increased demand for wood-based fuels.
The increase in operating profit is largely attributed to net sales growth.
Meanwhile profitability suffered from the weaker energy content and higher
logistics costs.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 1-3/2013 1-3/2012 1-12/2012
--------------------------------------------------------------------------------
Operating profit 6.3 4.9 48.4
Non-recurring items:
Gain on sale of holding in L&T Recoil Oy -4.2
Impairment of hazardous waste treatment 0.5
facilities
Gain on sale of eco product business -0.2
Restructuring costs 0.5 0.1 2.9
--------------------------------------------------------------------------------
Operating profit excluding non-recurring items 6.8 5.0 47.4
FINANCING
Cash flows from operating activities amounted to EUR 27.0 million (EUR 8.9
million). As a result of efficiency enhancement measures, a total of EUR 12.9
million in working capital was released (EUR 2.5 million tied up).
At the end of the period, interest-bearing liabilities amounted to EUR 97.4
million (EUR 159.0 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 83.6 million, showing an
increase of EUR 1.3 million from the beginning of the year and a decrease of
EUR 68.7 million from the comparison period.
Net finance costs decreased significantly in the first quarter and amounted to
EUR 0.4 million (EUR 1.0 million). Net finance costs were 0.2% (0.6%) of net
sales.
The average interest rate on long-term loans (with interest-rate hedging) was
2.2% (3.1%). Long-term loans totalling EUR 23.4 million will mature during the
rest of the year.
The equity ratio was 46.3% (39.7%) and the gearing rate 38.9 (75.4). Liquid
assets at the end of the period amounted to EUR 13.8 million (EUR 7.8 million).
Of the EUR 100 million commercial paper programme, EUR 16 million (EUR 46
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 totalled EUR 5.9 million (EUR 11.5 million) and was mainly
comprised of machine and equipment purchases.
PERSONNEL
In January-March the average number of employees converted into full-time
equivalents was 7,938 (8,119). The total number of full-time and part-time
employees at the end of the period was 8,988 (9,229). Of them 7,074 (7,257)
people worked in Finland and 1,914 (1,972) 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-March was 1,900,719 which
is 4.9% (7.1%) of the average number of outstanding shares. The value of
trading was EUR 23.8 million (EUR 31.4 million). The trading price varied
between EUR 11.60 and EUR 13.15. The closing price was EUR 12.54. The market
capitalisation excluding the shares held by the company was EUR 485.3 million
(EUR 426.7 million) at the end of the period.
Own shares
At the beginning of the year the company held 106,810 of its own share and at
the end of the period 92,247 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 38,685,569 shares. The average number of shares
excluding the shares held by the company totalled 38,695,703.
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 9,759 (9,460) shareholders.
Nominee-registered holdings accounted for 16.6% (15.1%) of the total number of
shares.
Notifications on major holdings
On 13 March 2013, Nordea Investment Fund Company Finland announced that its
holding of the shares and votes in Lassila & Tikanoja plc had risen to 5.5%.
On 10 April 2013, Nordea Investment Fund Company Finland announced that its
holding of the shares and votes in Lassila & Tikanoja plc had fallen to 4.98%.
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 Presidents 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, would be 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 resolved to be 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 has
announced that it will name 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.
EVENTS AFTER THE PERIOD
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.
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.
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-31 MARCH 2013
CONSOLIDATED INCOME STATEMENT
EUR 1 000 1-3/2013 1-3/2012 Change 1-12/201
% 2
--------------------------------------------------------------------------------
Net sales 167 721 171 286 -2,1 673 985
Cost of sales -154 367 -159 711 -3,3 -602 581
--------------------------------------------------------------------------------
Gross profit 13 354 11 575 15,4 71 404
Other operating income 378 548 -31,0 7 708
Selling and marketing costs -3 640 -4 091 -11,0 -16 745
Administrative expenses -3 246 -3 008 7,9 -12 090
Other operating expenses -548 -91 502,2 -1 584
Impairment, non-current assets -302
Impairment, goodwill and other intangible
assets
--------------------------------------------------------------------------------
Operating profit 6 298 4 933 27,7 48 391
Finance income 179 355 -49,6 860
Finance costs -587 -1 315 -55,4 -6 256
--------------------------------------------------------------------------------
Profit before tax 5 890 3 973 48,3 42 995
Income tax expense -1 443 -1 209 19,4 -8 543
--------------------------------------------------------------------------------
Profit for the period 4 447 2 764 60,9 34 452
Attributable to:
Equity holders of the company 4 451 2 769 34 459
Non-controlling interest -4 -5 -7
Earnings per share for profit attributable
to the equity holders of the company:
Basic earnings per share, EUR 0.12 0.07 0.89
Diluted earnings per share, EUR 0.12 0.07 0.89
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1 000 1-3/2013 1-3/2012 1-12/2012
--------------------------------------------------------------------------------
Profit for the period 4 447 2 764 34 452
Other comprehensive income, after tax
Items arising from re-measurement of defined -46 -189
benefit plans
--------------------------------------------------------------------------------
Total -46 -189
Hedging reserve, change in fair value 956 309 1 098
Revaluation reserve
Gains in the period -1 3 2
--------------------------------------------------------------------------------
Current available-for-sale financial assets -1 3 2
Currency translation differences 250 681 627
Currency translation differences, non-controlling 4 18 10
interest
------------------------------
Other comprehensive income, after tax 1 209 1 011 1 737
--------------------------------------------------------------------------------
Total comprehensive income, after tax 5 656 3 729 36 000
Attributable to:
Equity holders of the company 5 657 3 716 35 997
Non-controlling interest -1 13 3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1 000 3/2013 3/2012 12/2012
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 120 444 119 847 120 189
Customer contracts arising from acquisitions 7 110 9 867 7 880
Agreements on prohibition of competition 1 450 2 918 1 810
Other intangible assets arising from business 52 73 57
acquisitions
Other intangible assets 8 332 10 925 8 494
--------------------------------------------------------------------------------
137 388 143 630 138 430
Property, plant and equipment
Land 3 848 4 283 3 844
Buildings and constructions 51 499 78 381 52 393
Machinery and equipment 117 753 121 836 121 179
Other 87 85 86
Prepayments and construction in progress 3 467 4 720 2 657
--------------------------------------------------------------------------------
176 654 209 305 180 159
Other non-current assets
Available-for-sale investments 7 280 590 7 284
Finance lease receivables 3 630 3 808 3 608
Deferred tax assets 3 511 6 273 3 845
Other receivables 5 991 3 306 2 755
--------------------------------------------------------------------------------
20 412 13 977 17 492
Total non-current assets 334 454 366 912 336 081
Current assets
Inventories 23 864 26 916 24 884
Trade and other receivables 98 722 105 079 103 925
Derivative receivables 2 151 405 1 290
Prepayments 3 506 5 690 491
Current available-for-sale financial assets 2 001 1 999 2 499
Cash and cash equivalents 11 775 5 800 12 083
--------------------------------------------------------------------------------
Total current assets 142 019 145 889 145 172
TOTAL ASSETS 476 473 512 801 481 253
--------------------------------------------------------------------------------
EUR 1 000 3/2013 3/2012 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 463 -1 476 -743
Unrestricted equity reserve 6 109 29 403 29 381
Retained earnings 184 265 150 133 150 233
Profit for the period 4 451 2 769 34 459
-------------------------------------------------------------------------------
214 687 200 228 232 729
Non-controlling interest 273 284 274
-------------------------------------------------------------------------------
Total equity 214 960 200 512 233 003
Liabilities
Non-current liabilities
Deferred tax liabilities 31 118 29 126 31 313
Retirement benefit obligations 888 670 672
Provisions 4 252 2 569 4 304
Borrowings 52 203 88 236 57 961
Other liabilities 904 1 123 942
----------------------------------------------------- -----------------
89 365 121 724 95 192
---------
Current liabilities
Borrowings 45 162 70 801 38 915
Trade and other payables 125 563 118 140 112 880
Derivative liabilities 833 1 490 1 129
Tax liabilities 0 14 14
Provisions 590 120 120
-------------------------------------------------------------------------------
172 148 190 565 153 058
Total liabilities 261 513 312 289 248 250
TOTAL EQUITY AND LIABILITIES 476 473 512 801 481 253
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1 000 3/2013 3/2012 12/2012
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 4 447 2 764 34 452
Adjustments
Income tax expense 1 443 1 209 8 543
Depreciation, amortisation and impairment 10 578 10 826 43 642
Finance income and costs 408 959 5 395
Gain on sale of shares -4 181
Other -109 -459 1 603
--------------------------------------------------------------------------------
Net cash generated from operating activities before 16 767 15 299 89 454
change in working capital
Change in working capital
Change in trade and other receivables -296 -16 993 -10 574
Change in inventories 1 020 1 033 -121
Change in trade and other payables 12 210 13 476 17 096
--------------------------------------------------------------------------------
Change in working capital 12 934 -2 484 6 401
Interest paid -616 -1 311 -5 070
Interest received 129 257 830
Income tax paid -2 198 -2 854 -11 127
--------------------------------------------------------------------------------
Net cash from operating activities 27 016 8 907 80 488
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of -746 -2 498
cash acquired
Proceeds from sale of subsidiaries and businesses, 7 820
net of sold cash
Purchases of property, plant and equipment and -4 914 -10 940 -40 659
intangible assets
Proceeds from sale of property, plant and equipment 67 223 2 826
and intangible assets
Purchases of available-for-sale investments
Change in other non-current receivables 30 10 560
Proceeds from sale of available-for-sale investments
Dividends received 1
--------------------------------------------------------------------------------
Net cash used in investing activities -4 817 -11 453 -31 950
Cash flows from financing activities
Change in short-term borrowings 3 999 28 483 -5 781
Proceeds from long-term borrowings 10 200
Repayments of long-term borrowings -3 849 -5 007 -25 254
Dividends paid and other asset distribution -23 197 -21 254 -21 254
Repurchase of own shares
--------------------------------------------------------------------------------
Net cash generated from financing activities -23 047 2 222 -42 089
EUR 1 000 3/2013 3/2012 12/2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in liquid assets -848 -324 6 449
Liquid assets at beginning of period 14 582 8 069 8 069
Effect of changes in foreign exchange rates 42 54 64
Change in fair value of current available-for-sale
investments
--------------------------------------------------------------------------------
Liquid assets at end of period 13 776 7 799 14 582
Liquid assets
EUR 1 000 3/2013 3/2012 12/2012
--------------------------------------------------------------------------------
Cash and cash equivalents 11 775 5 800 12 083
Available-for-sale financial assets 2 001 1 999 2 499
--------------------------------------------------------------------------------
Total 13 776 7 799 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 80 80
80
e
recog
nition
of
share
-based
benef
its
Capita -23 272 299 -22 973
-22 973
l
repay
ment
Total 250 -1 956 4 451 5 657
-1 5 656
compr
ehensi
ve
incom
e
Other -617 -617
-617
diffe
rences
--------------------------------------------------------------------------------
----------
--------------------------------------------------------------------------------
----------
Equity 19 399 0 -535 1 997 6 109 188 716 214 687
273 214 960
at
31.3.
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 -47 0
0
ent in
IAS19
--------------------------------------------------------------------------------
----------
Expens 48 48
48
e
recog
nition
of
share
-based
benef
its
Repurc
hase
of
own
share
s
Capita -21 255 -21 255
-21 255
l
repay
ment
Total 681 3 309 2 769 3 762
13 3 775
compr
ehensi
ve
incom
e
--------------------------------------------------------------------------------
----------
--------------------------------------------------------------------------------
----------
Equity 19 399 0 -731 3 -748 29 403 152 855 200 228
284 200 512
at
31.3.
2012
KEY FIGURES
1-3/201 1-3/201 1-12/201
3 2 2
--------------------------------------------------------------------------------
Earnings per share, EUR 0.12 0.07 0.89
Earnings per share, diluted, EUR 0.12 0.07 0.89
Cash flows from operating activities per share, EUR 0.70 0.23 2.08
EVA, EUR million 0.9 -1.5 24.1
Capital expenditure, EUR 1000 5 919 11 474 49 385
Depreciation, amortisation and impairment, EUR 1000 10 578 10 826 43 641
Equity per share, EUR 5.55 5.18 6.01
Return on equity, ROE, % 7.9 5.3 15.3
Return on invested capital, ROI, % 8.0 5.9 14.4
Equity ratio, % 46.3 39.7 49.4
Gearing, % 38.9 75.4 35.3
Net interest-bearing liabilities, EUR 1000 83 589 151 239 82 294
Average number of employees in full-time equivalents 7 938 8 119 8 399
Total number of full-time and part-time employees at 8 988 9 229 8 962
end of period
Number of outstanding shares adjusted for issues,
1000 shares
average during the period 38 696 38 686 38 688
at end of period 38 707 38 686 38 692
average during the period, diluted 38 702 38 711 38 701
ACCOUNTING POLICIES
This financial statements 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 disclosure
requirement 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
1-3/201 1-3/201
3 2
--------- -------------
EUR 1 000 Externa Inter-d Total Externa Inter-d Total Total net
l ivision l ivision sales,
change %
--------------------------------------------------------------------------------
Environmenta 59 107 1 094 60 201 63 772 1 695 65 467 -8.0
l Services
--------- -------------
Industrial 13 080 650 13 730 12 189 734 12 923 6.2
Services
--------- -------------
Facility 74 791 1 005 75 796 78 786 834 79 620 -4.8
Services
--------- -------------
Renewable 20 743 1 027 21 770 16 539 1 045 17 584 23.8
Energy
Sources
--------- -------------
Eliminations -3 776 -3 776 -4 308 -4 308
--------------------------------------------------------------------------------
L&T total 167 721 0 167 721 171 286 0 171 286 -2.1
--------- -------------
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 1-3/2013 % 1-3/2012 % 1-12/2012 %
-------------------------------------------------------------------------
Environmental Services 6 224 10.3 4 272 6.5 34 251 12.9
Industrial Services -519 -3.8 -1 257 -9.7 3 892 5.6
Facility Services 429 0.6 1 596 2.0 12 980 4.3
Renewable Energy Sources 967 4.4 787 4.5 -61 -0.1
Group admin. and other -803 -465 -2 671
-------------------------------------------------------------------------
L&T total 6 298 3.8 4 933 2.9 48 391 7.2
Finance costs, net -408 -960 -5 396
-------------------------------------------------------------------------
Profit before tax 5 890 3 973 42 995
Other segment information
EUR 1 000 3/2013 3/2012 12/2012
------------------------------------------------------------
Assets
Environmental Services 219 678 274 680 228 457
Industrial Services 70 262 73 902 81 573
Facility Services 115 051 112 002 105 718
Renewable Energy Sources 29 721 29 966 30 179
Group admin. and other 15 970 2 057 9 853
Unallocated assets 25 791 20 194 25 473
------------------------------------------------------------
L&T total 476 473 512 801 481 253
Liabilities
Environmental Services 45 162 41 674 42 381
Industrial Services 19 524 17 449 18 687
Facility Services 55 180 52 283 50 073
Renewable Energy Sources 10 826 8 592 6 094
Group admin. and other 1 049 1 120 1 378
Unallocated assets 129 772 191 171 129 637
------------------------------------------------------------
L&T total 261 513 312 289 248 250
EUR 1 000 1-3/2013 1-3/2012 1-12/2012
------------------------------------------------------------
Capital expenditure
Environmental Services 2 472 4 281 16 149
Industrial Services 514 1 901 11 272
Facility Services 2 695 5 192 14 727
Renewable Energy Sources 45 97 486
Group admin. and other 193 3 6 751
------------------------------------------------------------
L&T total 5 919 11 474 49 385
Depreciation and amortisation
Environmental Services 5 595 6 362 24 690
Industrial Services 1 663 1 644 7 084
Facility Services 3 239 2 748 11 276
Renewable Energy Sources 77 72 281
Group admin. and other 4 0 9
------------------------------------------------------------
L&T total 10 578 10 826 43 340
Impairment
Environmental Services 302
------------------------------------------------------------
------------------------------------------------------------
L&T total 0 0 302
INCOME STATEMENT BY QUARTER
EUR 1 000 1-3/2013 10-12/2012 7-9/2012 4-6/2012 1-3/2012
----------------------------------------------------------------------------
Net sales
Environmental Services 60 201 64 670 66 388 69 136 65 467
Industrial Services 13 730 18 770 18 145 20 158 12 923
Facility Services 75 796 74 789 72 708 72 376 79 620
Renewable Energy Sources 21 770 18 287 7 977 12 099 17 584
Group admin. and other
Inter-division net sales -3 776 -4 725 -4 002 -4 077 -4 308
----------------------------------------------------------------------------
L&T total 167 721 171 791 161 216 169 692 171 286
Operating profit
Environmental Services 6 224 6 592 11 019 12 368 4 272
Industrial Services -519 1 161 1 789 2 199 -1 257
Facility Services 429 2 516 7 843 1 025 1 596
Renewable Energy Sources 967 269 -384 -733 787
Group admin. and other -803 -853 -638 -715 -465
----------------------------------------------------------------------------
L&T total 6 298 9 685 19 629 14 144 4 933
Operating margin
Environmental Services 10.3 10.2 16.6 17.9 6.5
Industrial Services -3.8 6.2 9.9 10.9 -9.7
Facility Services 0.6 3.4 10.8 1.4 2.0
Renewable Energy Sources 4.4 1.5 -4.8 -6.1 4.5
----------------------------------------------------------------------------
-------------------------
L&T total 3.8 5.6 12.2 8.3 2.9
Finance costs, net -408 -512 -568 -3 356 -960
----------------------------------------------------------------------------
Profit before tax 5 890 9 173 19 061 10 788 3 973
BUSINESS ACQUISITIONS
In January-March 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 1-3/2013 1-3/2012 1-12/2012
---------------------------------------------------------------------
Carrying amount at beginning of period 138 430 144 489 144 489
Business acquisitions 566 1 110
Other capital expenditure 637 621 2 322
Disposals -10 -1 957
Amortisation and impairment -1 842 -2 121 -8 023
Transfers between items
Exchange differences 163 85 489
---------------------------------------------------------------------
Carrying amount at end of period 137 388 143 630 138 430
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1 000 1-3/2013 1-3/2012 1-12/2012
---------------------------------------------------------------------
Carrying amount at beginning of period 180 159 207 522 207 522
Business acquisitions 515 2 438
Other capital expenditure 5 281 9 772 36 810
Disposals -135 -199 -31 258
Depreciation and impairment -8 736 -8 705 -35 619
Transfers between items
Exchange differences 85 400 266
---------------------------------------------------------------------
Carrying amount at end of period 176 654 209 305 180 159
CAPITAL COMMITMENTS
EUR 1 000 1-3/2013 1-3/2012 1-12/2012
-----------------------------------------------------------------------
Intangible assets 109
Property, plant and equipment 4 895 4 669 1 953
-----------------------------------------------------------------------
Total 4 895 4 669 2 062
The Group's share of capital commitments 50
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1 000 1-3/2013 1-3/2012 1-12/2012
------------------------------------------------------
Sales 488 939
Other operating income 12 24
Interest income 203 391
Non-current receivables
Capital loan receivable 25 146 0
Current receivables
Trade receivables 2 466 0
Loan receivables 1 801 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 7 280 7 280 7 280 3
le-for-
sale
invest
ments
Finance 3 630 3 630 3 931
lease
receiv
ables
Other 5 990 5 990 5 990
receiv
ables
Current
financ
ial
assets
Trade 88 865 88 865 88 865
and
other
receiv
ables
Derivat 15 2136 2 151 2 151 2
ive
receiv
ables
Availab 2 001 2 001 2 001 2
le-for-
sale
financ
ial
assets
Cash 11 775 11 775 11 775
and
cash
equiva
lents
--------------------------------------------------------------------------------
Total 15 110 260 9 281 2 136 121 692 121 993
financ
ial
assets
Non-cur
rent
financ
ial
liabil
ities
Borrowi 52 204 52 204 52 560
ngs
Other 605 605 605
liabil
ities
Current
financ
ial
liabil
ities
Borrowi 45 162 45 162
ngs
Trade 57 938 57 938
and
other
payabl
es
Derivat 833 833 833 2
ive
liabil
ities
--------------------------------------------------------------------------------
Total 155 909 833 156 742 53 998
financ
ial
liabil
ities
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1 000 3/2013 3/2012 12/2012
---------------------------------------------------------------------------
Mortgages on rights of tenancy 186 42 186 186
Company mortgages 583 21 460 583
Other securities 180 191 178
Bank guarantees required for environmental permits 8 704 5 140 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 31 March
2013.
Operating lease liabilities
EUR 1 000 3/2013 3/2012 12/2012
--------------------------------------------------------------------------------
Maturity not later than one year 5 212 7 231 5 556
Maturity later than one year and not later than five 7 460 13 968 8 377
years
Maturity later than five years 2 226 4 103 2 274
--------------------------------------------------------------------------------
Total 14 899 25 302 16 206
Liabilities associated with derivative agreements
Interest rate swaps
EUR 1 000 3/2013 3/2012 12/2012
--------------------------------------------------------------------------------
Nominal values of interest rate and currency swaps*
Maturity not later than one year 18 514 13 429 14 229
Maturity later than one year and not later than five 23 140 36 272 28 940
years
Maturity later than five years 2 727 2 727
--------------------------------------------------------------------------------
Total 44 381 49 701 45 896
Fair value -833 -1 084 -1 129
Nominal value of interest rate swaps**
Maturity not later than one year 0 4 000 0
Maturity later than one year and not later than five 0 19 455 0
years
Maturity later than five years 0 4 545 0
--------------------------------------------------------------------------------
Total 0 28 000 0
Fair value 0 -174 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 3/2013 3/2012 12/2012
--------------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 4 524 2 544 5 136
Maturity later than one year and not later than five 0 636 660
years
--------------------------------------------------------------------------------
Total 4 524 3 180 5 796
Fair value, EUR 1000 193 405 136
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 3/2013 3/2012 12/2012
---------------------------------------------------------
Volume of forward contracts
Maturity not later than one year 512 253 775
Fair value 15 -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 3/2013 3/2012 12/201
2
--------------------------------------------------------------------------------
Maturity of cross currency interest rate swaps under
hedge accounting
Maturity not later than one year 12 800 10 400 12 800
Maturity later than one year and not later than five 15 867 28 667 16 667
years
--------------------------------------------------------------------------------
Total 28 667 39 067 29 467
Fair value, EUR 1 000 1 943 -11 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 1.9 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, 23 April 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
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