2012-04-26 07:00:00 CEST
2012-04-26 07:00:06 CEST
REGULATED INFORMATION
Lassila & Tikanoja - Interim report (Q1 and Q3)
Lassila & Tikanoja plc: Interim report 1 January-31 March 2012
Helsinki, Finland, 2012-04-26 07:00 CEST (GLOBE NEWSWIRE) --
Net sales for the first quarter EUR 171.3 million (EUR 159.5 million)
Operating profit EUR 4.9 million (EUR 6.5 million)
Operating profit excluding non-recurring items EUR 5.0 million (EUR 6.8 million)
Earnings per share EUR 0.07 (EUR 0.10)
Full-year net sales in 2012 are expected remain at the 2011 level. Operating
profit, excluding non-recurring items, is expected to remain at the 2011 level
or improve slightly.
CEO PEKKA OJANPÄÄ:
“Our performance in the first quarter was disappointing. We will therefore
adopt an accelerated schedule of profitability-enhancement measures, such as
planned price increases and fixed cost cuts. Key projects associated with
logistics and production optimisation, as well as with the development of
procurement operations, will be carried out as scheduled during 2012.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Lassila & Tikanoja's net sales for the first quarter increased by 7.4% to EUR
171.3 million (EUR 159.5 million).
Operating profit was EUR 4.9 million (EUR 6.5 million), representing 2.9%
(4.1%) of net sales, and operating
profit excluding non-recurring items was EUR 5.0 million (EUR 6.8 million).
Earnings per share were EUR 0.07
(EUR 0.10).
Acquisitions made in the previous year contributed to the growth in net sales.
Financial performance was adversely affected by higher fuel, repair and
overtime costs than in the comparison period, as well as declining
profitability in international operations. Price competition taxed the
profitability of commissioned wintertime assignments in property maintenance
services. Similarly, the performance of the joint venture L&T Recoil weakened
from the comparison period. Thanks to smaller depreciation and a trimmer cost
structure, Renewable Energy Sources was able to improve its profitability.
Financial summary
1-3/ 1-3/ Change 1-12/
2012 2011 % 2011
--------------------------------------------------------------------------------
----------------------
Net sales, EUR million 171.3 159.5 7.4 652.1
---------------------------------------------------- ------
Operating profit excluding non-recurring items, EUR 5.0 6.8 -26.5 44.3
million*
---------------------------------------------------- ------
Operating profit, EUR million 4.9 6.5 -23.7 25.6
---------------------------------------------------- ------
Operating margin, % 2.9 4.1 3.9
---------------------------------------------------- ------
Profit before tax, EUR million 4.0 5.4 -26.4 21.0
---------------------------------------------------- ------
Earnings per share, EUR 0.07 0.10 -30.0 0.44
---------------------------------------------------- ------
EVA, EUR million -1.5 -0.2 -2.2
--------------------------------------------------------------------------------
* 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 up by 6.3% to EUR 77.0
million (EUR 72.4 million). Operating
profit totalled EUR 3.0 million (EUR 4.2 million) and operating profit
excluding non-recurring items was EUR 3.0
million (EUR 4.2 million).
The division's net sales growth could be primarily attributed to waste
management services, half of this growth being organic.
Recycled raw material volumes remained healthy in the first quarter, as did the
prices of secondary raw materials (fibres, plastics, metals). Meanwhile, demand
for services provided to the industry, especially process cleaning services,
was weaker than anticipated.
The quarter's operating profit decreased from the comparison period due to
higher fuel and repair costs and weaker profitability in international
operations (Latvia, Russia). The rise in cost levels can be transferred to
service prices during 2012.
The joint venture L&T Recoil also saw its performance deteriorate from the
comparison period, due to the two-week shutdown in March. However, the plant's
reliability and operating rate improved from the comparison period.
Cleaning and Office Support Services
The division's net sales for the first quarter totalled EUR 39.3 million (EUR
34.9 million), showing an increase of
12.8%. Operating profit totalled EUR 0.9 million (EUR 1.5 million) and
operating profit excluding non-recurring
items was EUR 1.0 million (EUR 1.5 million).
Acquisitions made in the previous spring contributed to net sales growth.
Swedish operations were in the red, which significantly taxed the division's
operating profit. The result from Finnish operations was at the comparison
period's level, even though profitability was eroded by an increase in labour
costs, which could not be fully transferred to service prices.
At the beginning of April, reorganisation of the Swedish operations and a
savings programme were launched to improve profitability.
Property Maintenance
The division's net sales for the first quarter were up by 3.5% to EUR 40.3
million (EUR 38.9 million). Operating
profit totalled EUR 0.8 million (EUR 1.9 million) and operating profit
excluding non-recurring items was EUR 0.8
million (EUR 1.9 million).
Expansion of the damage repair service network and the resulting increase in
workload contributed to the year-on-year increase in the division's net sales.
Increasingly tough price competition and the rise in subcontracting and
overtime costs eroded the operating profit in property maintenance services.
Renewable Energy Sources
First quarter net sales of Renewable Energy Sources (L&T Biowatti) were up by
9.8% to EUR 17.6 million
(EUR 16.0 million). The division recorded an operating profit of EUR 0.8
million (a loss of EUR 0.7 million), and
an operating profit excluding non-recurring items of EUR 0.8 million (a loss of
EUR 0.4 million).
Net sales increased from the comparison period thanks to successful new sales.
In the comparison period, a suspension in the payment of electricity production
subsidy to power plants had a negative effect on the demand for wood-based
fuels.
Thanks to smaller depreciation and a trimmer cost structure, there was a marked
improvement in the operating profit excluding non-recurring items.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS
EUR million 1-3/ 1-3/ 1-12/
2012 2011 2011
----------------------------------------------------------------------------
Operating profit 4.9 6.5 25.6
Non-recurring items:
Impairment of L&T Biowatti 17.1
Discontinuation of wood pellet production of L&T Biowatti 0.1 0.1
Restructuring costs 0.1 0.2 1.5
Operating profit excluding non-recurring items 5.0 6.8 44.3
----------------------------------------------------------------------------
FINANCING
Cash flows from operating activities amounted to EUR 8.9 million (EUR 10.5
million). EUR 2.5 million was tied up in the working capital (EUR 1.9 million).
At the end of the period, interest-bearing liabilities amounted to EUR 159.0
million (EUR 141.8 million). Net interest-bearing liabilities amounted to EUR
151.2 million, showing an increase of EUR 24.0 million from the beginning of
the year and an increase of EUR 19.2 million from the comparison period.
Net finance costs showed a slight decrease in January-March and amounted to EUR
1.0 million (EUR 1.1 million). Net finance costs were 0.6% (0.7%) of net sales.
The average interest rate on long-term loans (with interest-rate hedging) was
3.1% (3.2%). Long-term loans totalling EUR 19.9 million will mature during the
rest of the year.
The equity ratio was 39.7% (42.4%) and the gearing rate 75.4 (63.9). Liquid
assets at the end of the period amounted to EUR 7.8 million (EUR 9.8 million).
Of the EUR 100 million commercial paper programme, EUR 46 million (EUR 25
million) was in use at the end of the period. Committed limits totalling EUR 45
million, were not in use, as was the case in the comparison period.
DISTRIBUTION OF ASSETS
The Annual General Meeting held on March 15 2012 resolved that the profit for
2011 be placed in retained earnings and that no dividend be paid. A capital
repayment of EUR 0.55 per share would be paid for the financial year 2011. The
capital repayment, totalling EUR 21.3 million, was paid to the shareholders on
27 March 2012.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 11.5 million (EUR 12.9 million) and was mainly
comprised of machine and equipment purchases.
In the first quarter the property maintenance operations of IK
Kiinteistöpalvelu Oy, the business of Jyvässeudun Talonmiehet Oy and
Kiinteistöhuolto Markku Hyttinen Oy were acquired into Property Maintenance.
PERSONNEL
In January-March the average number of employees converted into full-time
equivalents was 8,119 (7,520). The total number of full-time and part-time
employees at the end of the period was 9,229 (8,725). Of them 7,257 (6,989)
people worked in Finland and 1,972 (1,736) 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 2,728,251 which
is 7.1% (8.5%) of the average number of outstanding shares. The value of
trading was EUR 31.4 million (EUR 44.1 million). The trading price varied
between EUR 10.70 and EUR 12.15. The closing price was EUR 11.03. At the end of
the period, the company held 113,305 of its own shares. The market
capitalisation excluding the shares held by the company was EUR 426.7 million
(EUR 492.0 million) at the end of the period.
Own shares
At the end of the period the company held 113,305 of its own shares,
representing 0.3% of all shares and votes.
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 38,685,569.
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 15.65. It was reduced by EUR 0.55 as of 20 March
2012. The price was reduced with the amount of capital repayment in accordance
with the terms and conditions of the share option scheme. The exercise period
in NASDAQ OMX Helsinki 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.
Share-based incentive programme 2012
Lassila & Tikanoja plc's Board of Directors decided on 14 December 2011 on a
new share-based incentive programme. Rewards will be based on the EVA result of
Lassila & Tikanoja group without L&T Recoil. They will be paid partly as shares
and partly in cash. The part paid in cash will cover the taxes caused by the
reward. Based on the programme a maximum of 65,520 shares of the company can
be granted. The company will buy the shares from the stock market. The
programme covers 22 persons.
Shareholders
At the end of the period, the company had 9,460 (9,665) shareholders.
Nominee-registered holdings accounted for 15.1% (11.2%) of the total number of
shares.
Notifications on major holdings
On 8 March 2012, Tapiola Mutual Pension Insurance Company announced that its
holding of the shares and votes in Lassila & Tikanoja plc had fallen to 3.9%.
Authorisation for the Board of Directors
The Annual General Meeting held on 15 March 2012 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.
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 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 15
March 2012, adopted the financial statements for the financial year 2011 and
released the members of the Board of Directors and the Presidents and CEOs from
liability.
The AGM resolved that the profit for 2011 be placed in retained earnings and
that no dividend be paid. A capital repayment of EUR 0.55 per share, as
proposed by the Board of Directors, would be paid for the financial year 2011
on the basis of the balance sheet adopted. The capital repayment, totalling EUR
21.3 million, payment date was resolved to be on 27 March 2012.
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 15 March 2012.
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 7, CHAPTER 2 OF THE
SECURITIES MARKETS ACT
In a release published on 13 January 2012 the company announced that Antti
Tervo has been appointed Chief Procurement Officer and Group Executive of
Lassila & Tikanoja plc as of 14 February 2012.
In a release on 9 February 2012 the company announced that Lassila & Tikanoja
plc has redeemed the remaining 30 percent of share capital of L&T Biowatti Oy
as agreed in an agreement signed 18 December 2006.
EVENTS AFTER THE PERIOD
In a release published on 26 April 2012 the company announced that Lassila &
Tikanoja is launching a new operational enhancement programme to improve its
profitability and to adapt operations to the current market environment. The
planned actions are estimated to improve profitability at least by EUR 4
million annually, over half of this in 2012.
The programme involves fixed cost cuts, price increases, holiday pay
arrangements and other efficiency improvement measures.
L&T will record approximately EUR 1.0 million in non-recurring adjustment costs
associated with the programme for the second quarter.
NEAR-TERM UNCERTAINTIES
Economic uncertainty may cause remarkable changes in the Environmental Services
division's secondary raw material markets and in industrial customer
relationships.
Any disturbances in L&T Recoil plant's production could have a negative effect
on the Environmental Services division's performance. End-product and raw
material price fluctuations, as well as the plant's supply volumes, have a
major effect on L&T Recoil's performance.
Uncertainties associated with the government subsidies for renewable fuels and
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 2011, in the report of the Board of Directors, and in the
consolidated financial statements.
OUTLOOK FOR THE REST OF THE YEAR
Despite the economic uncertainty, the outlook for Environmental Services is, by
and large, stable, but any weakening in demand for industrial services and in
new construction may give a reason to make operational adjustments. Secondary
raw material price developments and the operational reliability of L&T Recoil's
plant in particular will affect the division's profitability.
The business environment for Cleaning and Office Support Services and Property
Maintenance is expected to remain stable, though price competition is expected
to remain tough.
Demand for L&T Biowatti's wood-based fuels is expected to grow slightly from
the comparison period, and the division's profitability is likely to improve.
Full-year net sales in 2012 are expected remain at the 2011 level. Operating
profit excluding non-recurring items, is expected to remain at the 2011 level
or improve slightly.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-31 MARCH 2012
CONSOLIDATED INCOME STATEMENT
EUR 1000 1-3/2012 1-3/2011 Change % 1-12/201
1
Net sales 171 286 159 474 7.4 652 130
--------------------------------------------------------------------------------
Cost of sales -159 711 -146 658 8.9 -584 152
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Gross profit 11 575 12 816 -9.7 67 978
Other operating income 548 680 -19.4 3 038
Selling and marketing costs -4 091 -3 796 7.8 -15 217
Administrative expenses -3 008 -2 966 1.4 -11 408
Other operating expenses -91 -270 -66.3 -1 733
Impairment, non-current assets -5 677
Impairment, goodwill and other -11 384
intangible assets
Operating profit 4 933 6 464 -23.7 25 597
--------------------------------------------------------------------------------
Finance income 355 299 18.7 1 041
Finance costs -1 315 -1 363 -3.5 -5 644
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before tax 3 973 5 400 -26.4 20 994
Income tax expense -1 209 -1 404 -13.9 -4 030
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the period 2 764 3 996 -30.8 16 964
Attributable to:
Equity holders of the company 2 769 3 994 16 960
Non-controlling interest -5 2 4
Earnings per share for profit attributable to the equity holders of the company:
Basic earnings per share, EUR 0.07 0.10 0.44
Diluted earnings per share, EUR 0.07 0.10 0.44
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1000 1-3/ 1-3/ 1-12/
2012 2011 2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the period 2 764 3 996 16 964
Other comprehensive income, after tax
Hedging reserve, change in fair value 309 921 -487
Revaluation reserve
Gains in the period 3 -2 -4
Current available-for-sale financial assets 3 -2 -4
--------------------------------------------------------------------------------
Currency translation differences 681 32 111
Currency translation differences, non-controlling interest 18 -11
--------------------------------------------------------------------------------
Other comprehensive income, after tax 1 011 951 -391
--------------------------------------------------------------------------------
Total comprehensive income, after tax 3 775 4 947 16 573
Attributable to:
Equity holders of the company 3 762 4 943 16 580
Non-controlling interest 13 4 -7
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1000 3/2012 3/2011 12/2011
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 119 847 114 670 119 509
Customer contracts arising from acquisitions 9 867 5 753 10 591
Agreements on prohibition of competition 2 918 10 711 3 162
Other intangible assets arising from business 73 743 78
acquisitions
Other intangible assets 10 925 13 271 11 149
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
143 630 145 148 144 489
Property, plant and equipment
Land 4 283 4 655 4 589
Buildings and constructions 78 381 78 617 78 217
Machinery and equipment 121 836 112 244 120 015
Other 85 85 85
Prepayments and construction in progress 4 720 5 021 4 616
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
209 305 200 622 207 522
Other non-current assets
Available-for-sale investments 590 589 605
Finance lease receivables 3 808 3 549 3 578
Deferred tax assets 6 273 4 116 6 323
Other receivables 3 306 3 318 3 315
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
13 977 11 572 13 821
Total non-current assets 366 912 357 342 365 832
Current assets
Inventories 26 916 24 146 27 953
Trade and other receivables 105 079 95 829 91 629
Derivative receivables 405 1 413 419
Prepayments 5 690 6 334 438
Current available-for-sale financial assets 1 999 2 497 2 299
Cash and cash equivalents 5 800 7 277 5 770
Total current assets 145 889 137 496 128 508
--------------------------------------------------------------------------------
TOTAL ASSETS 512 801 494 838 494 340
--------------------------------------------------------------------------------
EUR 1000 3/2012 3/2011 12/2011
-------------------------------------------------------------------------------
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
Other reserves -1 476 -1 138 -2 469
Unrestricted equity reserve 29 403 -52 50 658
Retained earnings 150 133 133 559 133 125
Profit for the period 2 769 3 994 16 960
-------------------------------------------------------------------------------
200 228 206 435 217 673
Non-controlling interest 284 282 271
-------------------------------------------------------------------------------
Total equity 200 512 206 717 217 944
Liabilities
Non-current liabilities
Deferred tax liabilities 29 126 33 829 29 389
Retirement benefit obligations 670 630 628
Provisions 2 569 2 755 2 500
Borrowings 88 236 90 969 92 914
Other liabilities 1 123 478 960
-------------------------------------------------------------------------------
121 724 128 661 126 391
Current liabilities
Borrowings 70 801 50 819 42 319
Trade and other payables 118 140 107 768 105 751
Derivative liabilities 1 490 665 1 850
Tax liabilities 14 18 85
Provisions 120 190
190 565 159 460 150 005
-------------------------------------------------------------------------------
Total liabilities 312 289 288 121 276 396
TOTAL EQUITY AND LIABILITIES 512 801 494 838 494 340
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1000 3/2012 3/2011 12/2011
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 2 764 3 996 16 964
Adjustments
Income tax expense 1 209 1 404 4 030
Depreciation, amortisation and impairment 10 826 10 568 61 548
Finance income and costs 959 1 064 4 602
Other -459 -739 -858
--------------------------------------------------------------------------------
Net cash generated from operating activities before 15 299 16 293 86 286
change in working capital
Change in working capital
Change in trade and other receivables -16 993 -16 343 -7 843
Change in inventories 1 033 3 810 9
Change in trade and other payables 13 476 10 657 11 055
--------------------------------------------------------------------------------
Change in working capital -2 484 -1 876 3 221
Interest paid -1 311 -1 566 -6 165
Interest received 257 254 1 020
Income tax paid -2 854 -2 623 -9 896
--------------------------------------------------------------------------------
Net cash from operating activities 8 907 10 482 74 466
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of -746 -5 331 -24 430
cash acquired
Proceeds from sale of subsidiaries and businesses,
net of sold cash
Purchases of property, plant and equipment and -10 940 -5 860 -45 503
intangible assets
Proceeds from sale of property, plant and equipment 223 727 1 850
and intangible assets
Purchases of available-for-sale investments -20
Change in other non-current receivables 10 91 98
Proceeds from sale of available-for-sale investments
Dividends received
--------------------------------------------------------------------------------
Net cash used in investing activities -11 453 -10 373 -68 005
Cash flows from financing activities
Change in short-term borrowings 28 483 19 558 8 712
Proceeds from long-term borrowings 20 000
Repayments of long-term borrowings -5 007 -4 677 -19 761
Dividends paid and other asset distribution -21 254 -19 773 -21 284
Repurchase of own shares -517
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash generated from financing activities 2 222 -4 892 -12 850
EUR 1000 3/2012 3/2011 12/2011
--------------------------------------------------------------------------------
Net change in liquid assets -324 -4 783 -6 389
Liquid assets at beginning of period 8 069 14 548 14 548
Effect of changes in foreign exchange rates 54 9 -90
Change in fair value of current available-for-sale
investments
Liquid assets at end of period 7 799 9 774 8 069
--------------------------------------------------------------------------------
Liquid assets
EUR 1000 3/2012 3/2011 12/2011
--------------------------------------------------------------------------------
Cash and cash equivalents 5 800 7 277 5 770
Available-for-sale financial assets 1 999 2 497 2 299
--------------------------------------------------------------------------------
Total 7 799 9 774 8 069
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A = Share capital
B = Share premium reserve
C = Currency translation differences
D = Revaluation reserve
E = Hedging reserve
F = Invested unrestricted equity reserve
G = Retained earnings
H = Equity attributable to equity holders of the company
I = Non-controlling interest
J = Total equity
EUR A B C D E F G H I
J
1000
--------------------------------------------------------------------------------
----
Equity 19 399 0 -1 412 0 -1 057 50 658 150 085 217 673 271
217 944
at
1.1.20
12
Expens 48 48
48
e
recog
nition
of
share
-based
benefi
ts
Repurc
hase
of
own
share
s
Capita -21 255 -21 255
-21 255
l
repaym
ent
Total 681 3 309 2 769 3 762 13
3 775
compr
ehen
sive
incom
e
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Equity 19 399 0 -731 3 -748 29 403 152 902 200 228 284
200 512
at
31.3.2
012
Equity 19 399 50 673 -1 523 -48 -570 0 154 785 222 716 278
222 994
at
1.1.20
11
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Expens 80 80
80
e
recogn
ition
of
share
-based
benefi
ts
Repurc
hase
of
own
share
s
Divide -21 306 -21 306
-21 306
nds
paid
Transf 52 -52
er
from
revalu
ation
reser
ve
Total 32 -2 921 3 994 4 945 4
4 949
compr
ehen
sive
incom
e
--------------------------------------------------------------------------------
----
--------------------------------------------------------------------------------
----
Equity 19 399 50 673 -1 491 2 351 -52 137 553 206 435 282
206 717
at
31.3.2
011
KEY FIGURES 1-3/ 1-3/ 1-12/
2012 2011 2011
--------------------------------------------------------------------------------
Earnings per share, EUR 0.07 0.10 0.44
Earnings per share, diluted, EUR 0.07 0.10 0.44
Cash flows from operating activities per share, EUR 0.23 0.27 1.92
EVA, EUR million -1.5 -0.2 -2.2
Capital expenditure, EUR 1000 11 474 12 868 70 590
Depreciation, amortisation and impairment, EUR 1000 10 826 10 568 61 548
Equity per share, EUR 5.18 5.33 5.63
Return on equity, ROE, % 5.3 7.4 7.7
Return on invested capital, ROI, % 5.9 7.7 7.6
Equity ratio, % 39.7 42.4 44.5
Gearing, % 75.4 63.9 58.3
Net interest-bearing liabilities, EUR 1000 151 239 132 127
015 165
Average number of employees in full-time equivalents 8 119 7 520 8 513
Total number of full-time and part-time employees at 9 229 8 725 9 357
end of period
Number of outstanding shares adjusted for issues, 1000 shares
average during the period 38 686 38 738 38 722
at end of period 38 686 38 738 38 686
average during the period, diluted 38 711 38 769 38 762
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
2011 have been applied. The following new, revised or amended IFRS standards
and IFRIC interpretations that have become effective in 2012 have not had an
impact on the financial statements:
IFRS 7 (amendment) Financial Instruments: Disclosures - Derecognition
IAS 12 (amendment) Income taxes - Deferred tax
annual improvements to IFRS.
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
1-3/2012 1-3/2011
-------------------------------------
EUR 1000 Externa Inter-d Total Extern Inter-d Total Total net
l ivision al ivision sales,
change %
--------------------------------------------------------------------------------
Environmental 75 961 1 030 76 991 71 520 909 72 429 6.3
Services
-------- ------------
Cleaning and 38 901 420 39 321 34 549 307 34 856 12.8
Office Support
Services
-------- ------------
Property 39 885 414 40 299 38 212 727 38 939 3.5
Maintenance
-------- ------------
Renewable 16 539 1 045 17 584 15 193 818 16 011 9.8
Energy Sources
-------- ------------
Eliminations -2 909 -2 909 -2 761 -2 761
--------------------------------------------------------------------------------
L&T total 171 286 0 171 286 159 0 159 7.4
474 474
-------- ------------
1-12/2011
EUR 1000 External Inter-division Total
-----------------------------------------------------------------------
Environmental Services 322 264 3 620 325 884
Cleaning and Office Support Services 155 817 1 454 157 271
Property Maintenance 132 399 2 192 134 591
Renewable Energy Sources 41 650 3 752 45 402
Eliminations 0 -11 018 -11 018
-----------------------------------------------------------------------
L&T total 652 130 0 652 130
Operating profit
EUR 1000 1-3/ % 1-3/ % 1-12/ %
2012 2011 2011
------------------------------------------------------------------------------
Environmental Services 3 015 3.9 4 175 5.8 33 970 10.4
Cleaning and Office Support Services 845 2.1 1 475 4.2 7 131 4.5
Property Maintenance 751 1.9 1 902 4.9 8 181 6.1
Renewable Energy Sources 787 4.5 -651 -4.1 -21 250 -46.8
Group admin. and other -465 -437 -2 435
------------------------------------------------------------------------------
-----------------------------------------
L&T total 4 933 2.9 6 464 4.1 25 597 3.9
Finance costs, net -960 -1 064 -4 603
------------------------------------------------------------------------------
-----------------------------------------
Profit before tax 3 973 5 400 20 994
Other segment information
EUR 1000 3/2012 3/2011 12/2011
-------------------------------------------------------------------
Assets
Environmental Services 348 582 340 318 346 224
Cleaning and Office Support Services 58 010 42 643 54 302
Property Maintenance 53 992 42 050 45 048
Renewable Energy Sources 29 966 46 035 27 346
Group admin. and other 2 057 2 107 2 528
Unallocated assets 20 194 21 685 18 892
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------------------------------
L&T total 512 801 494 838 494 340
Liabilities
Environmental Services 59 123 56 020 57 367
Cleaning and Office Support Services 32 297 26 758 29 804
Property Maintenance 19 986 18 812 15 889
Renewable Energy Sources 8 592 6 529 3 932
Group admin. and other 1 120 2 585 1 343
Unallocated liabilities 191 171 177 417 168 061
-------------------------------------------------------------------
------------------------------
L&T total 312 289 288 121 276 396
EUR 1000 1-3/2012 1-3/2011 1-12/2011
-------------------------------------------------------------------
Capital expenditure
Environmental Services 6 182 8 814 43 362
Cleaning and Office Support Services 1 517 1 222 14 721
Property Maintenance 3 675 2 631 11 776
Renewable Energy Sources 97 88 454
Group admin. and other 3 113 277
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-------------------------------------------------------------------
L&T total 11 474 12 868 70 590
Depreciation and amortisation
Environmental Services 8 006 7 379 30 760
Cleaning and Office Support Services 1 269 953 4 928
Property Maintenance 1 479 1 069 4 873
Renewable Energy Sources 72 1 167 3 919
Group admin. and other 0 7
-------------------------------------------------------------------
-------------------------------------------------------------------
L&T total 10 826 10 568 44 487
Impairment
Renewable Energy Sources 17 061
-------------------------------------------------------------------
-------------------------------------------------------------------
L&T total 17 061
INCOME STATEMENT BY QUARTER
EUR 1000 1-3/ 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/
2012 2011 2011 2011 2011 2010 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales
Environmental 76 991 84 014 85 906 83 535 72 429 73 992 75 806 75 624
Services
Cleaning and 39 321 40 101 41 530 40 784 34 856 34 580 35 659 35 710
Office Support
Services
Property 40 299 33 451 31 322 30 879 38 939 31 596 26 926 28 090
Maintenance
Renewable 17 584 12 578 7 213 9 600 16 011 15 266 7 617 12 097
Energy Sources
Inter-division -2 909 -3 143 -2 502 -2 612 -2 761 -3 927 -2 238 -2 507
net sales
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T total 171 286 167 163 162 159 151 143 149
001 469 186 474 507 770 014
Operating
profit
Environmental 3 015 8 305 12 308 9 182 4 175 8 204 10 930 10 124
Services
Cleaning and 845 937 3 718 1 001 1 475 181 4 088 2 218
Office Support
Services
Property 751 1 928 3 582 769 1 902 633 3 263 1 075
Maintenance
Renewable 787 -18 -1 085 -1 325 -651 -361 -1 432 -3 900
Energy Sources 189
Group admin. -465 -887 -344 -767 -437 -104 -574 -762
and other
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T total 4 933 -7 906 18 179 8 860 6 464 8 553 16 275 8 755
Operating
margin
Environmental 3.9 9.9 14.3 11.0 5.8 11.1 14.4 13.4
Services
Cleaning and 2.1 2.3 9.0 2.5 4.2 0.5 11.5 6.2
Office Support
Services
Property 1.9 5.8 11.4 2.5 4.9 2.0 12.1 3.8
Maintenance
Renewable 4.5 -144.6 -15.0 -13.8 -4.1 -2.4 -18.8 -32.2
Energy Sources
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T total 2.9 -4.7 11.1 5.5 4.1 5.6 11.3 5.9
Finance costs, -960 -1 099 -1 277 -1 163 -1 064 -987 -1 272 -917
net
Profit before 3 973 -9 005 16 902 7 697 5 400 7 566 15 003 7 838
tax
--------------------------------------------------------------------------------
BUSINESS ACQUISITIONS
Business combinations in aggregate
Consideration
EUR 1000 Fair values used in
consolidation
--------------------------------------------------------------------------------
Cash 933
Equity instruments
Contingent consideration 201
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total consideration transferred 1 134
Indemnification asset
Fair value of equity interest held before the acquisition
Total consideration 1 134
--------------------------------------------------------------------------------
Acquisition-related costs (included in the administrative 4
expenses in the consolidated financial statements)
Recognised amounts of identifiable assets acquired and liabilities assumed
Property, plant and equipment 515
Customer contracts 146
Agreements on prohibition of competition 151
Other intangible assets arising from business acquisitions
Other intangible assets
Non-current available-for-sale financial assets
Inventories 2
Trade and other receivables 87
Cash and cash equivalents 154
Total assets 1 056
-----------------------------------------------------------------
Deferred tax liabilities
Non-current interest-bearing liabilities 44
Trade and other payables 146
Retirement benefit obligations
Contingent liability
Total liabilities 190
-----------------------------------------------------------------
-----------------------------------------------------------------
-----------------------------------------------------------------
Total identifiable net assets 865
Non-controlling interest
Goodwill 268
-----------------------------------------------------------------
-----------------------------------------------------------------
Total 1 134
Acquisitions by Property Maintenance
1 January 2012, the property maintenance operations of IK Kiinteistöpalvelu Oy.
1 February 2012, the business of Jyvässeudun Talonmiehet Oy and
Kiinteistöhuolto Markku Hyttinen Oy.
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 not changed 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.
Profit for the period includes changes allocated to acquisition prices
amounting to EUR 140 thousand.
By net sales, the largest acquisition was the business of Jyvässeudun
Talonmiehet Oy (EUR 858 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 1-3/2012 1-3/2011 1-12/2011
---------------------------------------------------------------------
Carrying amount at beginning of period 144 489 142 681 142 681
Business acquisitions 566 3 894 22 859
Other capital expenditure 621 884 2 646
Disposals -10 -1 -18
Amortisation and impairment -2 121 -2 408 -23 865
Transfers between items
Exchange differences 85 98 186
---------------------------------------------------------------------
Carrying amount at end of period 143 630 145 148 144 489
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1000 1-3/2012 1-3/2011 1-12/2011
---------------------------------------------------------------------
Carrying amount at beginning of period 207 522 200 700 200 700
Business acquisitions 515 1 693 4 441
Other capital expenditure 9 772 6 397 40 616
Disposals -199 -58 -477
Depreciation and impairment -8 705 -8 160 -37 683
Transfers between items
Exchange differences 400 50 -75
---------------------------------------------------------------------
Carrying amount at end of period 209 305 200 622 207 522
CAPITAL COMMITMENTS
EUR 1000 1-3/2012 1-3/2011 1-12/2011
-----------------------------------------------------------------------
Intangible assets 0 60 0
Property, plant and equipment 4 669 5 489 4 593
-----------------------------------------------------------------------
------------------------------
Total 4 669 5 549 4 593
The Group's share of capital commitments 50 75 0
of joint ventures
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1000 1-3/2012 1-3/2011 1-12/2011
------------------------------------------------------
Sales 488 309 2 489
Other operating income 12 18 63
Interest income 203 219 707
Non-current receivables
Capital loan receivable 25 146 21 646 24 396
Current receivables
Trade receivables 2 466 2 083 2 710
Loan receivables 1 801 1 232 1 633
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1000 3/2012 3/2011 12/2011
---------------------------------------------------------------------------
Mortgages on rights of tenancy 42 186 42 179 42 186
Company mortgages 21 460 21 460 21 460
Other securities 191 218 174
Bank guarantees required for environmental permits 5 140 4 399 5 702
Other securities are security deposits.
The Group has given no pledges, mortgages or guarantees on behalf of outsiders.
Operating lease liabilities
EUR 1000 3/2012 3/2011 12/2011
--------------------------------------------------------------------------------
Maturity not later than one year 7 231 8 175 7 708
Maturity later than one year and not later than five 13 968 20 089 15 504
years
Maturity later than five years 4 103 4 252 4 185
--------------------------------------------------------------------------------
------------------------
Total 25 302 32 516 27 397
Liabilities associated with derivative agreements
Interest rate and currency swaps
EUR 1000 3/2012 3/2011 12/2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Nominal values of interest rate and currency swaps*
Maturity not later than one year 13 429 11 716 13 429
Maturity later than one year and not later than five 36 272 47 668 38 033
years
Maturity later than five years
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 49 701 59 384 51 462
Fair value -1 095 -665 -1 504
Nominal value of interest rate swaps**
Maturity not later than one year 4 000 0 4 000
Maturity later than one year and not later than five 19 455 0 19 455
years
Maturity later than five years 4 545 0 4 545
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 28 000 0 28 000
Fair value -174 0 -144
* The interest rate and currency swaps are used to hedge cash flow related to a
floating rate loan, and hedge accounting under IAS 39 has been applied to it.
The hedges have been effective, and the changes in the fair values are shown in
the consolidated statement of comprehensive income for the period. On the
balance sheet date, the value of foreign currency loans was EUR 0.3 million
positive. 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 tons 3/2012 3/2011 12/2011
--------------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 2 544 6 333 2 544
Maturity later than one year and not later than five 636 1 908 636
years
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 3 180 8 241 3 180
Fair value, EUR 1000 405 1 322 419
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 3/2012 3/2011 12/2011
---------------------------------------------------------
Volume of forward contracts
Maturity not later than one year 253 0 1 079
Fair value -6 0 -19
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 2011: 7.7% and WACC 2012: 7.1%
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 April 2012
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,
Ville Rantala, CFO, 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. L&T is a significant supplier of wood-based biofuels,
recovered fuels and recycled raw materials. With operations in Finland, Sweden,
Latvia and Russia, L&T employs 9,500 persons. Net sales in 2011 amounted to EUR
652 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution:
NASDAQ OMX Helsinki
Major media
www.lassila-tikanoja.com
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