2013-02-01 07:00:02 CET
2013-02-01 07:00:12 CET
REGULATED INFORMATION
Lassila & Tikanoja - Financial Statement Release
Lassila & Tikanoja plc: Financial Statements Release 1 January - 31 December 2012
Helsinki, Finland, 2013-02-01 07:00 CET (GLOBE NEWSWIRE) --
Net sales for the final quarter EUR 171.8 million (EUR 167.0 million);
operating profit EUR 9.7 million (operating loss EUR 7.9 million); operating
profit excluding non-recurring items EUR 10.5 million (EUR 9.6 million);
earnings per share EUR 0.18 (EUR -0.18)
Full-year net sales EUR 674.0 million (EUR 652.1 million); operating profit EUR
48.4 million (EUR 25.6 million); operating profit excluding non-recurring items
EUR 47.4 million (EUR 44.3 million); earnings per share EUR 0.89 (EUR 0.44)
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.
Distribution of assets: The Board of Directors proposes a capital repayment EUR
0.60 per share.
CEO PEKKA OJANPÄÄ:
“Our performance in the fourth quarter was in line with our expectations.
Operating profit excluding non-recurring items picked up from the comparison
period, even though both fluctuations in the demand for services required by
the industry and substantially greater snowfall in the early winter than in
2011 posed challenges to production efficiency. Our new organisation came into
effect at the turn of the year and we are now focusing on its implementation in
accordance with our strategy. We are building a consistent L&T in order to
provide even better service to our customers.”
GROUP NET SALES AND FINANCIAL PERFORMANCE
Final quarter
Lassila & Tikanoja's net sales for the final quarter increased by 2.9% to EUR
171.8 million (EUR 167.0 million). Operating profit totalled EUR 9.7 million
(operating loss EUR 7.9 million), representing 5.6% (-4.7%) of net sales.
Operating profit excluding non-recurring items was EUR 10.5 million (EUR 9.6
million). Earnings per share were EUR 0.18 (earnings per share EUR -0.18).
Net sales saw year-on-year growth primarily due to the improved competitiveness
of wood-based fuels. Fluctuations in the demand for process cleaning services
for industry and the divestment of L&T's holding in the joint venture L&T
Recoil in June cut into net sales.
In the fourth quarter, overall performance improved from the comparison period
thanks to the higher profitability of Renewable Energy Sources and Swedish
cleaning operations. More snow fell in the early winter than in the comparison
period, which hampered production efficiency in property maintenance and
Environmental Services in particular, and also increased subcontracting and
production costs. Non-recurring costs totalling EUR 0.8 million were recognised
in the fourth quarter from the reorganisation of operations.
An impairment loss of EUR 17.1 million for the goodwill and other assets of the
Renewable Energy Sources division was recorded as a non-recurring cost in the
comparison period.
Year 2012
Lassila & Tikanoja's full-year net sales grew by 3.4% to 674.0 EUR million (EUR
652.1 million). Operating profit was EUR 48.4 million (EUR 25.6 million),
representing 7.2% (3.9%) of net sales, and operating profit excluding
non-recurring items was EUR 47.4 million (EUR 44.3 million). Earnings per share
were EUR 0.89 (EUR 0.44).
Net sales saw year-on-year growth primarily thanks to the higher demand for
wood-based fuels, the volume growth of Environmental Services and the expansion
of the damage repair network. Waste and recycling volumes remained at a good
level during the entire year. Demand for process cleaning services for industry
fluctuated greatly in the latter half of the year.
The overall performance improvement from the comparison period could be largely
attributed to the divestment of holdings in the loss-making joint venture L&T
Recoil at the end of June and the higher profitability of Renewable Energy
Sources. The smaller loss posted by Swedish operations also improved
performance. Full-year profitability was eroded by the non-recurring
compensation of about EUR 0.7 million paid in the second quarter in accordance
with the collective labour agreement and the increase in subcontracting and
labour costs, particularly in Property Maintenance.
A non-recurring capital gain of EUR 4.2 million was recognised in the second
quarter from the divestment
of holdings in L&T Recoil Oy. At the same time, a non-recurring cost of EUR 2.0
million was recorded in financial expenses, consisting of interest receivable
from subordinated loans granted to the joint venture. Furthermore,
non-recurring costs totalling EUR 3.2 million from the rearrangement and
efficiency enhancement measures taken in Environmental Services, Property
Maintenance and the Swedish business were recognised during the report year.
Financial summary
10-12/ 10-12/ Change 1-12/ 1-12/ Change
2012 2011 % 2012 2011 %
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---------------------------------------
Net sales, EUR million 171.8 167.0 2.9 674.0 652.1 3.4
---------------------------------- -------
Operating profit excluding 10.5 9.6 9.5 47.4 44.3 7.0
non-recurring items, EUR
million*
---------------------------------- -------
Operating profit, EUR million 9.7 -7.9 48.4 25.6 89.0
---------------------------------- -------
Operating margin, % 5.6 -4.7 7.2 3.9
---------------------------------- -------
Profit before tax, EUR million 9.2 -9.0 43.0 21.0 104.8
---------------------------------- -------
Earnings per share, EUR 0.18 -0.18 0.89 0.44 102.3
---------------------------------- -------
Capital repayment, EUR 0.60** 0.55
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EVA, EUR million 3.9 -14.9 24.1 -2.2
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* Breakdown of operating profit excluding non-recurring items is presented
below the division reviews.
** Proposal by the Board of Directors
NET SALES AND FINANCIAL PERFORMANCE BY DIVISION
Environmental Services
Final quarter
The division's net sales for the final quarter decreased by 2.1 % to EUR 82.3
million (EUR 84.0 million). Operating profit amounted to EUR 7.8 million (EUR
8.3 million), and operating profit excluding non-recurring items was EUR 7.9
million (EUR 8.3 million).
Both the seasonal weak demand for process cleaning services for industry and
the divestment of the holding in the joint venture L&T Recoil cut into the
division's net sales. Waste and recycling volumes were on a par with the
comparison period, and the prices of secondary raw materials (fibres, plastics,
metals) remained good.
The division's profitability saw a year-on-year decline primarily due to the
seasonal weak demand for process cleaning services for industry.
The net sales of the Environmental Services division's international operations
declined from the comparison period due to the tougher competitive situation in
Latvia.
Year 2012
The division's full-year net sales increased by 1.5% to EUR 330.7 million (EUR
325.9 million). Operating profit amounted to EUR 38.1 million (EUR 34.0
million), and operating profit excluding non-recurring items was EUR 35.0
million (EUR 34.0 million).
The healthy demand for waste management and industrial services was the key
driver of net sales growth. However, industrial demand weakened during the
latter half of the year. Waste volumes and the prices of secondary raw
materials (fibres, plastics, metals) remained robust throughout the report
year.
The division's operating profit remained on a par with the comparison period.
Operating profit was boosted by higher profitability following the L&T Recoil
divestment and successful production efficiency measures. However, performance
was taxed by the increase seen in fuel and repair costs, particularly in the
first half of the year, as well as weaker profitability in international
operations.
At the end of the second quarter, L&T sold its 50 per cent holding in the joint
venture L&T Recoil to the co-owner, EcoStream Oy. After this arrangement, L&T
owns slightly less than 20 per cent of EcoStream's shares and continues to
serve as one of the suppliers of raw materials to the regeneration plant. A
non-recurring capital gain of EUR 4.2 million on the arrangement was recorded
for the second quarter.
Cleaning and Office Support Services
Final quarter
The division's net sales for the final quarter totalled EUR 40.2 million (EUR
40.1 million); an increase of 0.3%. Operating profit amounted to EUR 2.0
million (EUR 0.9 million), and operating profit excluding non-recurring items
was EUR 2.4 million (EUR 1.1 million).
The division's net sales remained on a par with the comparison period, even
though competition made it harder to achieve the target price levels in new
sales and commissioned assignments.
Operating profit saw year-on-year growth, primarily thanks to higher
profitability in Swedish operations. Fixed cost management in Finnish
operations was also successful.
Year 2012
The Cleaning and Office Support Services division's full-year net sales grew by
2.7% to EUR 161.5 million (EUR 157.3 million). Operating profit amounted to EUR
7.6 million (EUR 7.1 million), and operating profit excluding non-recurring
items was EUR 9.1 million (EUR 7.5 million).
The division's net sales saw slight year-on-year growth as a result of
acquisitions made in the previous spring. Demand for commissioned assignments
remained good throughout the year in spite of heavy price competition.
The division's operating profit improved substantially on the comparison period
thanks to good performance in commissioned assignments and the higher
profitability of Swedish operations. Operating profit is burdened by a rise in
labour costs, which were not fully set off by service price hikes.
A non-recurring cost of EUR 1.0 million was recorded in the second quarter for
the reorganisation of the Swedish operations.
Property Maintenance
Final quarter
The division's net sales for the final quarter increased by 3.3% to EUR 34.6
million (EUR 33.5 million). Operating profit amounted to EUR 0.5 million (EUR
1.9 million), and operating profit excluding non-recurring items was EUR 0.7
million (EUR 1.9 million).
The division's net sales saw slight year-on-year growth, primarily because more
snow fell in the latter part of the year than in 2011.
Profitability weakened significantly from the comparison period due to a rise
in production and subcontracting costs. Operating profit was also burdened by
the smaller-than-usual size of commissioned assignments in damage repair
services.
Year 2012
The Property Maintenance division's full-year net sales increased by 2.5% to
EUR 138.0 million (EUR 134.6 million). Operating profit amounted to EUR 5.3
million (EUR 8.2 million), and operating profit excluding non-recurring items
was EUR 5.6 million (EUR 8.2 million).
Net sales saw a year-on-year increase primarily due to the growth in the
workload following the expansion of the damage repair service network.
The division's operating profit weakened from the comparison period due to
tighter price competition in property maintenance and higher subcontracting
costs. Profitability was also burdened by the fact that snowfall was heavier in
the latter part of the year than in the comparison period.
In damage repair services, even more new co-operation agreements were signed
with insurance companies in the latter half of the year. These agreements are
expected to bolster L&T's market position in the future and provide a steadier
workload.
Renewable Energy Sources
Final quarter
Final-quarter net sales for Renewable Energy Sources (L&T Biowatti) were up by
45.4%, to EUR 18.3 million (EUR 12.6 million). Operating profit amounted to EUR
0.3 million (a loss of EUR 18.2 million), and operating profit excluding
non-recurring items was EUR 0.3 million (a loss of EUR 1.1 million).
Net sales saw substantial year-on-year growth due to better competitiveness of
wood-based fuels. The division's profitability also improved significantly on
the comparison period thanks to volume growth, lower depreciation and the
management of fixed costs.
Year 2012
The full-year net sales of Renewable Energy Sources (L&T Biowatti) were up by
23.2% to EUR 55.9 million (EUR 45.4 million). Operating loss amounted to EUR
0.1 million (a loss of EUR 21.3 million), and operating profit excluding
non-recurring items was EUR 0.1 million (a loss of EUR 3.8 million).
Net sales saw substantial year-on-year growth, as new sales rose thanks to the
better demand for wood-based fuels in comparison with fossil fuels.
Operating profit also improved substantially due to volume growth and the more
efficient cost structure, although the rainy summer and early autumn weakened
the energy content of forest processed chips.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING ITEMSEUR million 10-12/ 10-12/ 1-12/ 1-12/
2012 2011 2012 2011
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Operating profit 9.7 -7.9 48.4 25.6
Non-recurring items:
Gain on sale of holding in L&T Recoil Oy -4.2
Impairment of hazardous waste treatment facilities 0.2 0.5
Impairment of L&T Biowatti 17.1 17.1
Discontinuation of wood pellet production of L&T 0.1
Biowatti
Gain on sale of eco product business -0.2 -0.2
Restructuring costs 0.8 0.4 2.9 1.5
Operating profit excluding non-recurring items 10.5 9.6 47.4 44.3
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FINANCING
Cash flows from operating activities amounted to EUR 80.5 million (EUR 74.5
million). EUR 6.4 million was released from the working capital (EUR 3.2
released).
At the end of the year, interest-bearing liabilities amounted to EUR 96.9
million (EUR 135.2 million). L&T Recoil accounted for EUR 18.1 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 4.9 million, of which EUR 4.2 million were past due on 31 December
2012. L&T's receivables and liabilities related to EcoStream holding were in
total EUR 21.3 million.
Net interest-bearing liabilities amounted to EUR 82.3 million, showing a
decrease of EUR 20.0 million on the final quarter and EUR 44.9 million from the
beginning of the year.
Net finance costs decreased significantly in the final quarter and amounted to
EUR 0.5 million (EUR 1.1 million). In 2012 net finance costs amounted to EUR
5.4 million (EUR 4.6 million). This increase could be attributed to the
non-recurring cost recognition of EUR 2.0 million on interest receivable from
subordinated loans given to L&T Recoil Oy in the second quarter. Due to the
cost recognition, net finance costs were 0.8% (0.7%) of net sales.
The average interest rate on long-term loans (with interest-rate hedging) was
2.2% (3.1%). The interest hedging of loans remained unchanged at 68% (68%).
Long-term loans totalling EUR 26.9 million will mature during 2013.
The equity ratio was 49.4% (44.5%) and the gearing rate 35.3 (58.3). Liquid
assets at the end of the period amounted to EUR 14.6 million (EUR 8.1 million).
Of the EUR 100 million commercial paper programme, EUR 12.0 million (EUR 17
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 15 March 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
In 2012, gross capital expenditure amounted to EUR 49.4 million (EUR 70.6
million), of which EUR 9.4 million were related to acquisitions, including the
slightly under 20 per cent holding in EcoStream Oy that was part of the L&T
Recoil arrangement.
In the first quarter, the Property Maintenance division acquired the property
maintenance businesses of IK Kiinteistöpalvelu Oy and the business of
Jyvässeudun Talonmiehet Oy and Kiinteistöhuolto Markku Hyttinen Oy.
In the second quarter, the Environmental Services division acquired the waste
management business of Sita Finland Oy in Oulu.
In the fourth quarter, the Environmental Services acquired business operations
of the Munaistenmetsä material recovery area in Uusikaupunki.
PERSONNEL
In 2012 the average number of employees converted into full-time equivalents
was 8,399 (8,513). The total number of full-time and part-time employees at the
end of the period was 8,962 (9,357). Of them 7,035 (7,381) people worked in
Finland and 1,927 (1,976) people in other countries.
PROPOSAL FOR THE DISTRIBUTION OF ASSETS
According to the financial statements, Lassila & Tikanoja plc's unrestricted
equity amount to EUR 114,473,686.13 with the operating profit for the period
representing EUR 24,083,220.00. There were no substantial changes in the
financial standing of the company after the end of the period, and the solvency
test referred to in Chapter 13, section 2 of the Companies Act does not affect
the amount of distributable assets.
The Board of Directors proposes to the Annual General Meeting that the profit
for 2012 be placed in retained earnings and that no dividend be paid.
The Board of Directors proposes to the Annual General Meeting that, based on
the balance sheet to be adopted for 2012, a capital repayment of EUR 0.60 per
share be made. Capital is repaid from the reserve for invested unrestricted
equity. Capital is repaid to shareholders included in the company shareholder
register maintained by Euroclear Finland Oy on the record date, 15 March 2013.
The Board proposes to the Annual General Meeting that the capital repayment be
made on 22 March 2013.
No capital repayment shall be paid on shares held by the company on the
dividend payment record date of 15 March 2013. On the day the proposal for the
distribution of assets was made, the number of shares entitling to capital
repayment was 38,692,064, which means the total amount of the capital repayment
would be EUR 23,215,238.40.
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 2012 was 9,973,989 which is 25.8%
(23.0%) of the average number of outstanding shares. The value of trading was
EUR 105.1 million (EUR 108.2 million). The trading price varied between EUR
8.59 and EUR 12.15. The closing price was EUR 11.64. The market capitalisation
excluding the shares held by the company was EUR 450.4 million (EUR 444.5
million) at the end of the period.
Own shares
At the beginning of the period, the company held 113,305 of its own shares and
at the end 106,810 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 38,692,064 shares. The average number of shares
excluding the shares held by the company totalled 38,688,373.
Share-based incentive programme 2012
Lassila & Tikanoja plc's Board of Directors decided on 14 December 2011 on a
share-based incentive programme. Rewards was based on the EVA result of Lassila& Tikanoja group without L&T Recoil. Based on the programme a maximum of 65,520
shares of the company could be granted. The programme covered 22 persons. Under
the programme, 13,983 shares will be granted for 2012.
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 financial period, the company had 9,382 (9,365) shareholders.
Nominee-registered holdings accounted for 17.2% (13.0%) of the total number of
shares.
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.
The Board of Directors is authorised to transfer a maximum of 500,000 company
shares, which is 1.3% of the
total number of shares. The share issue authorisation will be effective until
31 March 2014.
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 4, CHAPTER 6 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.
In a release published on 26 April 2012 the company announced that it is
launching a new operational enhancement programme to improve its profitability
and to adapt operations to the current market environment.
In a release published on 2 May 2012 the company announced that Jorma Mikkonen,
Vice President, Environmental Services, leaves the Group Executive Board of
Lassila & Tikanoja plc.
In a release published on 8 May 2012 the company announced that Lassila &
Tikanoja plc and EcoStream Oy are negotiating on a business transaction in
which Lassila & Tikanoja will sell its 50 percent holding in the joint venture
L&T Recoil Oy to EcoStream Oy, a co-owner.
In a release published on 25 June 2012 the company announced that it has sold
its 50 percent holding in joint venture L&T Recoil Oy to the co-owner,
EcoStream Oy.
In a release published on 7 September 2012 the company announced its new
strategy. The core businesses of the new clarified portfolio are environmental,
industrial and facility services. From 1 January 2013, L&T's reporting segments
are Environmental Services, Industrial Services, Facility Services, and
Renewable Energy Sources. The new financial targets are: organic growth over
5%, return on investment (ROI) 20%, operating profit 9% and gearing 30-80%.
In a release published on 7 September 2012 the company announced changes in
company's management. Petri Salermo (QBA, born 1970) has been appointed Vice
President, Environmental Services effective from 1 January 2013, Ville Rantala
(M.Sc. Econ., born 1971) has been appointed Vice President, Industrial Services
effective from 1 January 2013 and Petri Myllyniemi (M.Sc. Econ.; B.Sc. Eng.,
born 1964) has been appointed Vice President, Facility Services, effective from
7 January 2013. For the time being, Juha Simola and Henri Turunen will continue
to act as the Vice Presidents of the current Property Maintenance and Cleaning
and Office Support Services divisions and as members of the Group Executive
Board.
In a release published on 14 September 2012 the company announced it is hosting
a Capital Markets Day. The aim of the day was to present L&T's new strategy.
In a release published on 24 October 2012 the company announced that Timo
Leinonen has been appointed Chief Financial Officer and Group Executive of
Lassila & Tikanoja plc as of 23 January 2013.
In a release published on 9 November 2012 the company announced that Juha
Simola, Vice President, Property Maintenance and Group Executive will leave his
position at Lassila & Tikanoja plc on 9 November 2012.
In a release published on 14 November 2012 the company announced that Henri
Turunen, Vice President, Cleaning and Office Support Services and Group
Executive will leave Lassila & Tikanoja plc on 20 November 2012.
NEAR-TERM RISKS AND UNCERTAINTIES
Economic uncertainty may cause major changes in the Environmental Services
division's secondary raw material markets and in industrial customer
relationships.
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 2011, in the
report of the Board of Directors, and in the consolidated financial statements.
OUTLOOK FOR THE YEAR 2013
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 DECEMBER 2012
CONSOLIDATED INCOME STATEMENT
EUR 1000 10-12/201 10-12/201 1-12/201 1-12/201
2 1 2 1
Net sales 171 791 167 001 673 985 652 130
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Cost of sales -155 876 -151 706 -602 581 -584 152
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Gross profit 15 915 15 295 71 404 67 978
Other operating income 1 535 1 026 7 708 3 038
Selling and marketing costs -4 329 -3 926 -16 745 -15 217
Administrative expenses -2 927 -2 818 -12 090 -11 408
Other operating expenses -509 -422 -1 584 -1 733
Impairment, property, plant and -5 677 -302 -5 677
equipment
Impairment, goodwill and other -11 384 -11 384
intangible assets
Operating profit 9 685 -7 906 48 391 25 597
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Finance income 102 329 860 1 041
Finance costs -614 -1 428 -6 256 -5 644
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Profit before tax 9 173 -9 005 42 995 20 994
Income tax expense -2 117 2 140 -8 543 -4 030
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Profit for the period 7 056 -6 865 34 452 16 964
Attributable to:
Equity holders of the company 7 055 -6 865 34 459 16 960
Non-controlling interest 1 0 -7 4
Earnings per share for profit attributable to the equity holders of the company:
Basic earnings per share, EUR 0.18 -0.18 0.89 0.44
Diluted earnings per share, EUR 0.18 -0.18 0.89 0.44
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR 1000 10-12/20 10-12/20 1-12/20 1-12/20
12 11 12 11
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Profit for the period 7 056 -6 865 34 452 16 964
Other comprehensive income, after tax
Hedging reserve, change in fair value -701 928 1 098 -487
Revaluation reserve
Gains in the period 1 -13 2 -4
Current available-for-sale financial 1 -13 2 -4
assets
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Currency translation differences -141 645 627 111
Currency translation differences, -1 7 10 -11
non-controlling interest
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Other comprehensive income, after tax -841 1 567 1 737 -391
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Total comprehensive income, after tax 6 215 -5 298 36 189 16 573
Attributable to:
Equity holders of the company 6 216 -5 305 36 186 16 580
Non-controlling interest 0 7 3 -7
TAX EFFECTS OF COMPONENTS OF OTHER COMPREHENSIVE INCOME
31.12.2012 31.12.2011
--------
EUR 1 000 Before Tax After Before Tax After
tax expense/ tax tax expense/ tax
benefit benefit
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Hedging reserve, change 1 454 -356 1 098 -623 136 -487
in fair value
--------
Revaluation reserve
--------
Current 2 2 -5 1 -4
available-for-sale
financial assets
--------
Currency translation 694 -67 627 169 -58 111
differences
--------
Currency translation 10 10 -11 -11
differences
non-controlling
interest
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Components of other 2 160 -423 1 737 -470 79 -391
comprehensive income
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR 1000 12/2012 12/2011
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ASSETS
Non-current assets
Intangible assets
Goodwill 120 189 119 509
Customer contracts arising from acquisitions 7 880 10 591
Agreements on prohibition of competition 1 810 3 162
Other intangible assets arising from business acquisitions 57 78
Other intangible assets 8 494 11 149
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138 430 144 489
Property, plant and equipment
Land 3 844 4 589
Buildings and constructions 52 393 78 217
Machinery and equipment 121 179 120 015
Other 86 85
Prepayments and construction in progress 2 657 4 616
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180 159 207 522
Other non-current assets
Available-for-sale investments 7 284 605
Finance lease receivables 3 608 3 578
Deferred tax assets 3 845 6 323
Other receivables 2 755 3 315
----------------------------------------------------------------------------
----------------------------------------------------------------------------
17 492 13 821
Total non-current assets 336 081 365 832
Current assets
Inventories 24 884 27 953
Trade and other receivables 103 925 91 629
Derivative receivables 1 290 419
Prepayments 491 438
Current available-for-sale financial assets 2 499 2 299
Cash and cash equivalents 12 083 5 770
Total current assets 145 172 128 508
----------------------------------------------------------------------------
TOTAL ASSETS 481 253 494 340
----------------------------------------------------------------------------
EUR 1000 12/2012 12/2011
----------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity
Equity attributable to equity holders of the company
Share capital 19 399 19 399
Share premium reserve
Other reserves -743 -2 469
Unrestricted equity reserve 29 381 50 658
Retained earnings 150 233 133 125
Profit for the period 34 459 16 960
----------------------------------------------------------------------
232 729 217 673
Non-controlling interest 274 271
----------------------------------------------------------------------
Total equity 233 003 217 944
Liabilities
Non-current liabilities
Deferred tax liabilities 31 313 29 389
Retirement benefit obligations 672 628
Provisions 4 304 2 500
Borrowings 57 961 92 914
Other liabilities 942 960
----------------------------------------------------------------------
95 192 126 391
Current liabilities
Borrowings 38 915 42 319
Trade and other payables 112 880 105 751
Derivative liabilities 1 129 1 850
Tax liabilities 14 85
Provisions 120
153 058 150 005
----------------------------------------------------------------------
Total liabilities 248 250 276 396
TOTAL EQUITY AND LIABILITIES 481 253 494 340
----------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR 1000 12/2012 12/2011
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 34 452 16 964
Adjustments
Income tax expense 8 543 4 030
Depreciation, amortisation and impairment 43 642 61 548
Finance income and costs 5 395 4 602
Gain on sale of shares -4 181
Other 1 603 -858
--------------------------------------------------------------------------------
Net cash generated from operating activities before change in 89 454 86 286
working capital
Change in working capital
Change in trade and other receivables -10 574 -7 843
Change in inventories -121 9
Change in trade and other payables 17 096 11 055
--------------------------------------------------------------------------------
Change in working capital 6 401 3 221
Interest paid -5 070 -6 165
Interest received 830 1 020
Income tax paid -11 127 -9 896
--------------------------------------------------------------------------------
Net cash from operating activities 80 488 74 466
Cash flows from investing activities
Acquisition of subsidiaries and businesses, net of cash -2 498 -24 430
acquired
Proceeds from sale of subsidiaries and businesses, net of sold 7 820
cash
Purchases of property, plant and equipment and intangible -40 659 -45 503
assets
Proceeds from sale of property, plant and equipment and 2 826 1 850
intangible assets
Purchases of available-for-sale investments -20
Change in other non-current receivables 560 98
Dividends received 1
--------------------------------------------------------------------------------
Net cash used in investing activities -31 950 -68 005
Cash flows from financing activities
Change in short-term borrowings -5 781 8 712
Proceeds from long-term borrowings 10 200 20 000
Repayments of long-term borrowings -25 254 -19 761
Capital repayments paid -21 254 -21 284
Repurchase of own shares -517
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash generated from financing activities -42 089 -12 850
EUR 1000 12/2012 12/2011
-------------------------------------------------------------
Net change in liquid assets 6 449 -6 389
Liquid assets at beginning of period 8 069 14 548
Effect of changes in foreign exchange rates 64 -90
Liquid assets at end of period 14 582 8 069
-------------------------------------------------------------
Liquid assets
EUR 1000 12/2012 12/2011
-------------------------------------------------------------
Cash and cash equivalents 12 083 5 770
Available-for-sale financial assets 2 499 2 299
-------------------------------------------------------------
Total 14 582 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
1.1.2
012
Expens 125 125
125
e
recog
nitio
n of
share
-based
benef
its
Repurc
hase
of
own
share
s
Capita -21 277 22 -21 255
-21 255
l
repay
ment
Total 627 2 1 098 34 459 36 186 3
36 189
compr
ehens
ive
incom
e
--------------------------------------------------------------------------------
-----
--------------------------------------------------------------------------------
-----
Equity 19 399 0 -785 2 41 29 381 184 691 232 729 274
233 003
at
31.12
.2012
Equity 19 399 50 673 -1 523 -48 -570 0 154 785 222 716 278
222 994
at
1.1.2
011
--------------------------------------------------------------------------------
-----
--------------------------------------------------------------------------------
-----
Expens 183 183
183
e
recog
nitio
n of
share
-based
benef
its
Repurc -553 -553
-553
hase
of
own
share
s
Divide -21 290 -21 290
-21 290
nds
paid
Transf 52 -15 37
37
er
from
reval
uation
rese
rve
Transf -50 673 50 673
er
from
share
premi
um
reser
ve
Total 111 -4 -487 16 960 16 580 -7
16 573
compr
ehensi
ve
incom
e
--------------------------------------------------------------------------------
-----
--------------------------------------------------------------------------------
-----
Equity 19 399 0 -1 412 0 -1 057 50 658 150 085 217 673 271
217 944
at
31.12
.2011
KEY FIGURES
10-12/ 10-12/ 1-12/ 1-12/
2012 2011 2012 2011
--------------------------------------------------------------------------------
Earnings per share, EUR 0.18 -0.18 0.89 0.44
Earnings per share, diluted, EUR 0.18 -0.18 0.89 0.44
Cash flows from operating activities per share, 0.79 0.75 2.08 1.92
EUR
EVA, EUR million 3.9 -14.9 24.1 -2.2
Capital expenditure, EUR 1000 13 120 14 893 49 385 70 590
Depreciation, amortisation and impairment, EUR 10 762 28 394 43 642 61 548
1000
Equity per share, EUR 6.01 5.63
Capital repayment / share, EUR 0.60* 0.55
Capital repayment / earnings, % 67.36* 125.00
Capital repayment yield, % 5.2* 4.8
P/E ratio 13.1* 26.2
Return on equity, ROE, % 15.3 7.7
Return on invested capital, ROI, % 14.4 7.6
Equity ratio, % 49.4 44.5
Gearing, % 35.3 58.3
Net interest-bearing liabilities, EUR 1000 82 294 127 165
Average number of employees in full-time 8 399 8 513
equivalents
Total number of full-time and part-time 8 962 9 357
employees at end of period
Number of outstanding shares adjusted for issues, 1000
shares
average during the period 38 688 38 722
at end of period 38 692 38 686
average during the period, diluted 38 700 38 762
* Proposal by the Board of Directors
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 financial statements release has not been audited.
SEGMENT INFORMATION
Net sales
10-12/2012 10-12/2011
---------------------------------------
EUR 1000 Externa Inter-d Total Externa Inter-d Total Total net
l ivision l ivision sales,
change %
--------------------------------------------------------------------------------
Environmental 81 001 1 253 82 254 82 960 1 054 84 014 -2,1
Services
--------- ------------
Cleaning and 39 637 586 40 223 39 728 373 40 101 0,3
Office
Support
Services
--------- ------------
Property 33 890 676 34 566 32 901 550 33 451 3,3
Maintenance
--------- ------------
Renewable 17 263 1 024 18 287 11 412 1 166 12 578 45,4
Energy
Sources
--------- ------------
Eliminations 0 -3 539 -3 539 -3 143 -3 143
--------------------------------------------------------------------------------
L&T total 171 791 0 171 167 001 0 167 001 2,9
791
--------- ------------
1-12/2012 1-12/2011
---------------------------------------
EUR 1000 Externa Inter-d Total Externa Inter-d Total Total net
l ivision l ivision sales,
change %
--------------------------------------------------------------------------------
Environmental 326 654 4 021 330 322 264 3 620 325 884 1,5
Services 675
--------- ------------
Cleaning and 159 470 2 072 161 155 817 1 454 157 271 2,7
Office 542
Support
Services
--------- ------------
Property 135 981 1 970 137 132 399 2 192 134 591 2,5
Maintenance 951
--------- ------------
Renewable 51 880 4 067 55 947 41 650 3 752 45 402 23,2
Energy
Sources
--------- ------------
Eliminations -12 130 -12 -11 018 -11 018
130
--------------------------------------------------------------------------------
L&T total 673 985 0 673 652 130 0 652 130 3,4
985
--------- ------------
Operating profit
EUR 1000 10-12/ % 10-12/ % 1-12/ % 1-12/ %
2012 2011 2012 2011
--------------------------------------------------------------------------------
Environmental 7 753 9,4 8 305 9,9 38 143 11,5 33 970 10,4
Services
Cleaning and Office 2 017 5,0 937 2,3 7 641 4,7 7 131 4,5
Support Services
Property Maintenance 499 1,4 1 928 5,8 5 339 3,9 8 181 6,1
Renewable Energy 269 1,5 -18 189 -144,6 -61 -0,1 -21 250 -46,8
Sources
Group admin. and -853 -887 -2 671 -2 435
other
--------------------------------------------------------------------------------
-----------------------------------------------------------
L&T total 9 685 5,6 -7 906 -4,7 48 391 7,2 25 597 3,9
Finance costs, net -512 -1 099 -5 396 -4 603
--------------------------------------------------------------------------------
-----------------------------------------------------------
Profit before tax 9 173 -9 005 42 995 20 994
Other segment information
EUR 1000 12/2012 12/2011
--------------------------------------------------------------------------------
Assets
Environmental Services 310 030 346 224
Cleaning and Office Support 56 056 54 302
Services
Property Maintenance 49 662 45 048
Renewable Energy Sources 30 179 27 346
Group admin. and other 9 853 2 528
Unallocated assets 25 473 18 892
--------------------------------------------------------------------------------
--------------------------------------------
L&T total 481 253 494 340
Liabilities
Environmental Services 61 068 57 367
Cleaning and Office Support 30 289 29 804
Services
Property Maintenance 19 784 15 889
Renewable Energy Sources 6 094 3 932
Group admin. and other 1 378 1 343
Unallocated liabilities 129 637 168 061
--------------------------------------------------------------------------------
--------------------------------------------
L&T total 248 250 276 396
EUR 1000 10-12/2012 10-12/201 1-12/2012 1-12/2011
1
--------------------------------------------------------------------------------
Capital expenditure
Environmental Services 9 977 10 098 27 421 43 362
Cleaning and Office Support 1 031 629 4 917 14 721
Services
Property Maintenance 1 999 4 007 9 810 11 776
Renewable Energy Sources 113 45 486 454
Group admin. and other 0 114 6 751 277
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T total 13 120 14 893 49 385 70 590
Depreciation and amortisation
Environmental Services 7 815 7 865 31 774 30 760
Cleaning and Office Support 1 225 1 354 5 001 4 928
Services
Property Maintenance 1 648 1 355 6 275 4 873
Renewable Energy Sources 70 758 281 3 919
Group admin. and other 3 1 9 7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T total 10 761 11 333 43 340 44 487
Impairment
Renewable Energy Sources 0 17 061 302 17 061
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T total 0 17 061 302 17 061
INCOME STATEMENT BY QUARTER
EUR 1000 10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2012 2012 2012 2012 2011 2011 2011 2011
--------------------------------------------------------------------------------
Net
sales
Environm 82 254 83 304 88 126 76 991 84 014 85 906 83 535 72 429
ental
Service
s
Cleaning 40 223 41 340 40 658 39 321 40 101 41 530 40 784 34 856
and
Office
Support
Service
s
Property 34 566 31 368 31 718 40 299 33 451 31 322 30 879 38 939
Mainten
ance
Renewabl 18 287 7 977 12 099 17 584 12 578 7 213 9 600 16 011
e Energy
Sources
Inter-di -3 539 -2 773 -2 909 -2 909 -3 143 -2 502 -2 612 -2 761
vision
net
sales
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T 171 791 161 216 169 692 171 286 167 001 163 469 162 186 159 474
total
Operatin
g profit
Environm 7 753 12 808 14 567 3 015 8 305 12 308 9 182 4 175
ental
Service
s
Cleaning 2 017 4 544 235 845 937 3 718 1 001 1 475
and
Office
Support
Service
s
Property 499 3 299 790 751 1 928 3 582 769 1 902
Mainten
ance
Renewabl 269 -384 -733 787 -18 189 -1 085 -1 325 -651
e Energy
Sources
Group -853 -638 -715 -465 -887 -344 -767 -437
admin.
and
other
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T 9 685 19 629 14 144 4 933 -7 906 18 179 8 860 6 464
total
Operatin
g margin
Environm 9.4 15.4 16.5 3.9 9.9 14.3 11.0 5.8
ental
Service
s
Cleaning 5.0 11.0 0.6 2.1 2.3 9.0 2.5 4.2
and
Office
Support
Service
s
Property 1.4 10.5 2.5 1.9 5.8 11.4 2.5 4.9
Mainten
ance
Renewabl 1.5 -4.8 -6.1 4.5 -144.6 -15.0 -13.8 -4.1
e Energy
Sources
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
L&T 5.6 12.2 8.3 2.9 -4.7 11.1 5.5 4.1
total
Finance -512 -568 -3 356 -960 -1 099 -1 277 -1 163 -1 064
costs,
net
Profit 9 173 19 061 10 788 3 973 -9 005 16 902 7 697 5 400
before
tax
--------------------------------------------------------------------------------
BUSINESS ACQUISITIONS
In business combinations, all property, plant and equipment acquired is
measured at fair value on the basis of the market prices of similar assets,
taking into account the age of the assets, wear and tear and similar factors.
Tangible assets will be depreciated over their useful life according to the
management's estimate, taking into account the depreciation principles observed
within the Group.
Intangible assets arising from business combinations are recognised separately
from goodwill at fair value at the time of acquisition if they are
identifiable. In connection with acquired business operations, the Group mostly
has acquired agreements on prohibition of competition and customer
relationships. The fair value of customer agreements and customer relationships
associated with them has been determined on the basis of estimated duration of
customer relationships and discounted net cash flows arising from current
customer relationships. The value of agreements on prohibition of competition
is calculated in a similar manner through cash flows over the duration of the
agreement. Other intangible assets will be amortised over their useful life
according to agreement or the management's estimate.
In addition to the skills of the personnel of the acquired businesses, goodwill
arising from business combinations comprises other intangible items. These
unidentified items include the potential for gaining new customers in the
acquired businesses and the opportunities for developing new products and
services, as well as the regionally strong position of an acquired business.
All business combinations also create synergy benefits that consist primarily
of savings in fixed production costs.
Changes in goodwill arising from acquisitions or acquisition costs may arise on
the basis of terms and conditions related to the acquisition price in the deeds
of sale. In many acquisitions a small portion of the acquisition price is
contingent on future events (less than 12 months). These conditional
acquisition prices are recorded at fair value at the time of acquisition, and
any changes will be recorded through profit or loss in the income statement for
the period. Profit for the period includes changes allocated to acquisition
prices amounting to EUR 150 thousand. Changes in the acquisition prices made in
2009 and for the Biowatti acquisition in 2007 will be recorded in goodwill in
line with the old IFRS 3.
The consolidated net sales for the year 2012 would have been EUR 674.1 million
and the consolidated profit for the period EUR 34.5 million if all the
acquisitions had occurred on 1 January 2012. The realised net sales of the
acquired businesses have been added to the consolidated net sales, and their
realised profits and losses have been added to the consolidated profit in
accordance with interim accounts at the time of acquisition. Profit for the
period is stated less the current amortisation on intangible assets and
depreciation charges on property, plant and equipment. Synergy benefits have
not been accounted for.
The aggregate net sales of the acquired businesses totalled EUR 1.9 million in
2012.
Business combinations in aggregate
Consideration
EUR 1000 Fair values used in
consolidation
--------------------------------------------------------------------------------
Cash 2 690
Equity instruments
Contingent consideration
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total consideration transferred 2 690
Indemnification asset
Fair value of equity interest held before the acquisition
Total consideration 2 690
--------------------------------------------------------------------------------
Acquisition-related costs (included in the administrative 6
expenses in the consolidated financial statements)
Recognised amounts of identifiable assets acquired and liabilities assumed
Property, plant and equipment 2 438
Customer contracts 618
Agreements on prohibition of competition 151
Other intangible assets arising from business acquisitions 0
Other intangible assets 0
Non-current available-for-sale financial assets 0
Inventories 2
Trade and other receivables 87
Deferred tax assets 96
Cash and cash equivalents 154
Total assets 3 546
-----------------------------------------------------------------
Deferred tax liabilities 0
Non-current interest-bearing liabilities 44
Trade and other payables 54
Retirement benefit obligations 0
Contingent liability 1 098
Total liabilities 1 196
-----------------------------------------------------------------
Total identifiable net assets 2 350
-----------------------------------------------------------------
Non-controlling interest 0
Goodwill 340
-----------------------------------------------------------------
-----------------------------------------------------------------
Total 2 690
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.
Acquisitions by Environmental Services
- 1 May 2012, the waste management business of Sita Finland Oy in Oulu.
- 11 October 2012 the business of material utilisation area of the
Munaistenmetsä material recovery area in Uusikaupunki.
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.
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.
On 18 December 2006, an agreement was signed on the acquisition of the majority
(70%) of the shares of
Biowatti Oy from the acting management of the company. L&T also made a
commitment to redeem the
remaining 30 percent of the shares by the beginning of the year 2012. The
acquisition price for the 70 percent
portion was EUR 30.9 million, and it was settled in cash. No interest-bearing
liabilities were transferred in the
acquisition. In the consolidated financial statements the whole acquisition
price (100%) was recognised as
acquisition cost. No minority interest was separated from the profit or equity,
but the estimated acquisition price
of the remaining 30 percent was recognised as interest-bearing current
liability. The final price of the 30
percent portion was determined based on the future earnings of L&T Biowatti. In
January 2012, L&T Biowatti's 30 per cent holding in the company was redeemed in
accordance with the agreement. These shares were valued at EUR 2,411 thousand
in the 2011 financial statements.
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.
DISPOSALS OF BUSINESSES
In June 2012 Lassila & Tikanoja plc sold its holding in joint venture L&T
Recoil Oy to the co-owner, EcoStream Oy. The selling price totalled EUR 16.7
million and was comprised of EUR 10 million paid in cash and 19.9% of
EcoStream's share capital. The gain on sale was EUR 4.2 million. The gain on
sale is shown in other operating income and is treated as on non-recurring
item. L&T Recoil was a part of Environmental Services division. L&T still
continues as one of the raw material suppliers of the plant in Hamina.
At 31 December 2012 Lassila & Tikanoja had a selling price receivable of EUR
2.0 million and account receivables related to oil deliveries of EUR 2.9
million from EcoStream.
Lassila & Tikanoja plc has given a guarantee for a share of 50 per cent 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
December 2012.
In December 2012 the selling of eco-products to Kekkilä Oy was completed. The
selling price totalled EUR 1.1 million. The gain on sale of EUR 0.2 million was
not substantial. This component of entity does not meet the criteria of
presenting discontinued operations specified in IFRS 5.31-32.
No disposals of subsidiaries or businesses were made in 2011.
EUR 1 000 L&T Recoil Oy
------------------------------------------------------------------
Property, plant and equipment and intangible assets 31 329
Inventories 3 188
Trade and other receivables 5 516
Cash and cash equivalents 185
Financial liabilities -18 088
Trade and other payables -9 608
------------------------------------------------------------------
------------------------------------------------------------------
Net assets 12 522
Total selling price 16 702
Received in cash 8 004
Selling price receivables 1996
EcoStream shares 6 702
CHANGES IN INTANGIBLE ASSETS
EUR 1000 1-12/2012 1-12/2011
------------------------------------------------------------
Carrying amount at beginning of period 144 489 142 681
Business acquisitions 1 110 22 859
Other capital expenditure 2 322 2 646
Disposals -1 957 -18
Amortisation and impairment -8 023 -23 865
Transfers between items
Exchange differences 489 186
------------------------------------------------------------
Carrying amount at end of period 138 430 144 489
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR 1000 1-12/2012 1-12/2011
------------------------------------------------------------
Carrying amount at beginning of period 207 522 200 700
Business acquisitions 2 438 4 441
Other capital expenditure 36 810 40 616
Disposals -31 258 -477
Depreciation and impairment -35 619 -37 683
Transfers between items
Exchange differences 266 -75
------------------------------------------------------------
Carrying amount at end of period 180 159 207 522
CAPITAL COMMITMENTS
EUR 1000 1-12/2012 1-12/2011
--------------------------------------------------------------
Intangible assets 109 0
Property, plant and equipment 1 953 4 593
--------------------------------------------------------------
---------------------
Total 2 062 4 593
The Group's share of capital commitments 0 0
of joint ventures
RELATED-PARTY TRANSACTIONS
(Joint ventures)
EUR 1000 1-12/2012 1-12/2011
---------------------------------------------
Sales 939 2 489
Other operating income 24 63
Interest income 391 707
Non-current receivables
Capital loan receivable 0 24 396
Current receivables
Trade receivables 0 2 710
Loan receivables 0 1 633
CONTINGENT LIABILITIES
Securities for own commitments
EUR 1000 12/2012 12/2011
--------------------------------------------------------------------
Mortgages on rights of tenancy 186 42 186
Company mortgages 583 21 460
Other securities 178 174
Bank guarantees required for environmental permits 6 483 5 702
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 December
2012.
Operating lease liabilities
EUR 1000 12/2012 12/2011
----------------------------------------------------------------------------
Maturity not later than one year 5 556 7 708
Maturity later than one year and not later than five years 8 377 15 504
Maturity later than five years 2 274 4 185
----------------------------------------------------------------------------
-----------------
Total 16 206 27 397
Liabilities associated with derivative agreements
Interest rate swaps
EUR 1000 12/2012 12/2011
----------------------------------------------------------------------------
Nominal values of interest rate swaps*
Maturity not later than one year 14 229 13 429
Maturity later than one year and not later than five years 28 940 38 033
Maturity later than five years 2 727
----------------------------------------------------------------------------
Total 45 896 51 462
Fair value -1 129 -1 504
Nominal value of interest rate swaps** 0 4 000
Maturity not later than one year 0 19 455
Maturity later than one year and not later than five years 0 4 545
Maturity later than five years 0 28 000
----------------------------------------------------------------------------
Total 0 -144
Fair value 0 4 000
* 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 tons 12/2012 12/2011
----------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 5 136 2 544
Maturity later than one year and not later than five years 660 636
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total 5 796 3 180
Fair value, EUR 1000 136 419
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 forwards
EUR 1000 12/2012 12/2011
--------------------------------------------------
Volume of forward contracts
Maturity not later than one year 775 1 079
Fair value 4 -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.
Cross currency interest rate swaps
EUR 1000 12/2012 12/2011
--------------------------------------------------------------------------------
Maturity of cross currency interest rate swaps under hedge
accounting
Maturity not later than one year 12 800 10 400
Maturity later than one year and not later than five years 16 667 29 467
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 29 467 39 867
Fair value, EUR 1000 1 150 -183
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 1.2 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 2011: 7.7%
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, 31 January 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,
Timo Leinonen, CFO, tel. +358 400 793 073 or
Keijo Keränen, Head of Treasury & IR, tel. +358 50 385 6957.
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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