Quarterly Report • Jul 29, 2008
Quarterly Report
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Net sales for the second quarter stood at EUR 154.4 million (EUR 138.8 million). This represented an increase of 11.2%, 1.5 percentage points of which came from corporate acquisitions. The operating profit was EUR 10.2 million (EUR 12.0 million), which is 6.6% (8.7%) of net sales. The operating profit excluding non-recurring and imputed items was EUR 11.3 million (EUR 13.8 million). Earnings per share were EUR 0.17 (EUR 0.20).
Organic growth continued. The quarter's performance was burdened by a larger rise than expected in the general cost level, particularly in the prices of transport fuels that can only be transferred into sales prices with a delay. The operating profit was also burdened by changes in the fair values of oil derivatives amounting to EUR 1.1 million (EUR 0.5 million).
Net sales for January-June stood at EUR 301.7 million (EUR 267.9 million). This represented an increase of 12.6%, 3.8 percentage points of which came from corporate acquisitions. The operating profit was EUR 33.0 million (EUR 21.2 million), which is 10.9% (7.9%) of net sales. The operating profit excluding nonrecurring and imputed items was EUR 20.1 million (EUR 24.1 million). Earnings per share were EUR 0.68 (EUR 0.35).
Organic growth outperformed market growth, and new service products were introduced to the market. The operating profit was improved by a capital gain of EUR 14.3 million from the sale of Ekokem shares in January. The operating profit excluding non-recurring and imputed items was burdened by a rapid increase in production costs and a decline in the demand for recycled fuels and biofuels due to the mild winter. The operating profit was burdened by changes in the fair values of oil derivatives amounting to EUR 1.4 million (EUR 1.6 million).
| 4-6/ | 4-6/ | Change | 1-6 / |
1-6 / |
Change | 1-1 2/ |
|
|---|---|---|---|---|---|---|---|
| 2008 | 2007 | % | 2008 | 2007 | % | 2007 | |
| Net sales, EUR million | 154.4 | 138.8 | 11.2 | 301.7 | 267.9 | 12.6 | 554.6 |
| Operating profit excluding | |||||||
| non-recurring and imputed | |||||||
| items, EUR million* | 11.3 | 13.8 | -18.1 | 20.1 | 24.1 | -16.6 | 54.3 |
| Operating profit, EUR million | 10.2 | 12.0 | -15.3 | 33.0 | 21.2 | 55.8 | 48.8 |
| Operating margin, % | 6.6 | 8.7 | 10.9 | 7.9 | 8.8 | ||
| Profit before tax, EUR million | 9.2 | 11.1 | -17.2 | 30.9 | 19.4 | 59.3 | 44.5 |
| Earnings per share, EUR | 0.17 | 0.20 | -15.0 | 0.68 | 0.35 | 94.3 | 0.83 |
| EVA, EUR million | 2.8 | 6.0 | -53.3 | 18.6 | 9.6 | 93.8 | 23.0 |
* Breakdown of operating profit excluding non-recurring and imputed items is presented at th nd of th explanatory statement. e e e
The net sales of Environmental Services (waste managemen recycling services, L&T Biowa , enviro second quarter amounted to EUR 76.6 million (E increase of 6.8%. The operating profit was EUR 8.2 million (EUR 8.1 million). t, tti nmental products) in the UR 71.7 million), an
Rapidly increasing production costs, particularly an increase in the prices of transport fuels, b ned th division's operating performance. The cost increase had its greatest effect in waste management, which fell sho rofitability of recycling services was weakened by a continuing increase in the purchase prices of certain waste materials and a downturn in the availability of recycled materials from the forest industry. The heating values of biofuels supplied by L&T Biowatti were higher than in the compari n period, and its performance improved. urde e rt of its targets. The p so
Operatio de Finland within Environmental Services ex nded, and performance devel ed favourably. Net sales from Environmental Products continued to increase. ns outsi pa op
All units within waste management and recycling services received certificates for quality, environmental, occupa ent. The bjective of certification is to i ser e and reinforce d operating procedures. tional health and safety manage share m o mprove vic
Environmental Services' net sales for January-June amounte 2.1 million (EUR 137.1 million) an incr operating pr it was EUR 16.6 million (EUR 16.9 million). d to EUR 15 , ease of 10.9%. The of
It was not possible to transfer the major increase in transport fuel prices completely into sales prices. Prices will be increased with a delay, and production efficiency measures were initiated in ord r to adapt to increased production costs. e
ial added capacity was initiated at the Kerava recycling park. The capacity of the Kerava plant will be doubled to almost 400,000 tonnes by 2010, and the recovery rate will increase substantially. Due to the reduced capacity of the landfill at the Kerava plant for technical reasons, the costs of disposal of plant reject will increase. The industrial waste landfill under construction in Kotka is expected to be completed within the next few months. Construction of substant
The demand for L&T Biowatti's biofuels was substantially lower than expected, which was due to the exceptionally mild winter. Warm weather also hampered the collection of forest processed chips, and subcontracting costs increased. L&T Biowatti will invest in its own collecting, processing and transport equipment for forest processed chips and start the production of wood pellets during the current year.
The business in Russia and Latvia developed as planned. Resources were increased to further expand international operations.
The net sales of Property and Office Support Services (property maintenance and cleaning services) in the second quarter totalled EUR 57.1 million (EUR 48.7 million), an increase of 17.4%. The operating profit was EUR 1.2 million (EUR 1.7 million).
Growth in net sales continued thanks to acquisitions made in the previous year. Organic growth was strong particularly in property maintenance. The division's performance weakened due to increased production costs that could not be transferred fully to prices.
Operations in Sweden remained in the red, and an extensive action programme to improve profitability is underway.
he January-June net sales of Property and Office Support Services totalled EUR 112.7 million (EUR 97.4 %. The operating profit was EUR 2.8 million (EUR 2.8 million). T million), an increase of 15.7
increased, and the sales of additional services were successful. Price competition Contract revenue remained intense, and operations are being adapted to increased production costs.
ning services included the &T EcoCleaning concept, which received the Nordic Ecolabel, also known as the Swan Label, as the New service products were again introduced to the market. New products in clea ® L first product of the industry in Finland. The concept provides customers the opportunity to carry out concrete environment-friendly actions.
The holding in Blue Service Partners was sold to the joint venture partner in the beginning of February.
s planned. The focus in Sweden is still on organic growth d improving profitability. The loss from international operations declined. The operations in Russia and Latvia developed a an
air d quarter amounted to EUR 22.1 million (EUR 19.6 million), an crease of 12.7%. The operating profit was EUR 1.2 million (EUR 2.6 million). The net sales of Industrial Services (hazardous waste management, industrial solutions, damage rep services, wastewater services) in the secon in
ut it was not yet ossible to transfer the entire increase in the cost level into prices. The operating profit was also burdened as Rapid fluctuation in the demand for industrial cleaning services continued, and production could not be adapted to the fluctuation quickly enough. Net sales from all product lines increased b p by changes in the fair values of oil derivatives amounting to EUR 1.1 million (EUR 0.5 million), as well the costs of raw material storage for the L&T Recoil re-refinery for used lubricating oil that is currently under construction.
New partner agreements were made in damage repair services, and the service network was expanded.
Demand for the division's services improved towards the end of the period.
he January-June net sales of Industrial Services amounted to EUR 39.4 million (EUR 35.7 million), an T increase of 10.4%. The operating profit was EUR 0.3 million (EUR 2.5 million).
xceptionally strong. Production could not be adapted quickly enough to the rapid fluctuation in the Most of the growth came from operations transferred from Environmental Services. The demand for Industrial Services is usually weakest early in the year; however, demand in the comparison period was e demand for services. In the first quarter the earnings were also burdened by difficulties in delivering recycled fuels.
ges in the fair values of oil derivatives amounting to EUR 1.4 illion (EUR 1.6 million). The earnings were also burdened by chan m
Pricing will be adjusted, and all product lines will focus on improving profitability. The L&T Recoil re-refinery is expected to be completed towards the end of the year.
year earlier. et interest-bearing liabilities, totalling EUR 111.8 million, increased by EUR 6.9 million from the ed by st expenses creased by EUR 0.1 million in the second quarter and by EUR 0.4 million in January-June. At the end of the period, interest-bearing liabilities amounted to EUR 2.1 million more than a N comparison period and by EUR 25.4 million from the beginning of the year. Net finance costs increas EUR 0.1 million in the second quarter and by EUR 0.3 million in January-June. Intere in
costs (8.4%) of operating profit. An expense of EUR 0.1 million arising from changes in the fair values of interest rate swaps was recognised in the finance costs while there were none of them in the comparison period. Net finance were 0.7% (0.7%) of net sales and 6.3%
s which hedge accounting under IAS 39 is applied, was recognised as an increase in equity. In January-June, a total of EUR 0.4 million arising from the change in the fair value of interest rate swap to
lows from operating activities January-June amounted to EUR 25.9 million (EUR 24.7 million), and EUR 2.3 million were tied up in the 5.8 million). The equity ratio was 44.5% (42.2%) and the gearing rate 57.7 (61.2). Cash f in working capital (EUR
R 0.55 per share. The ividend, totalling EUR 21.3 million, was paid to the shareholders on 11 April 2008. The Annual General Meeting held on 1 April 2008 resolved on a dividend of EU d
ment were purchased and information systems were replaced. Capital expenditure totalled EUR 31.4 million (EUR 64.7 million). Production plants were built and machinery and equip
to Property and Office Support Services (annual net sales EUR 0.2 million). On 1 April 2008, the property maintenance services business of Rantakylän Talonhuolto Oy was acquired in
the first quarter the cleaning services business of Siivouspalvelu Siivoset Oy and the cleaning services usliike Lainio Oy were acquired into Property and Office Support Services. The business In business of Siivo of Obawater Oy was acquired into waste water services within Industrial Services. The combined annual net sales of the acquired businesses totalled EUR 0.7 million.
.398). e period, the total number of full-time and part-time employees was 10.087 (9.486). Of them .694 (7.212) people worked in Finland and 2.393 (2.274) people in other countries. In January-June, the average number of employees converted into full-time equivalents was 7.972 (7 At the end of th 7
he volume of trading in Lassila & Tikanoja plc shares on OMX Nordic Exchange Helsinki from January rough June was 12,459,495, which is 32.1% (24.6%) of the average number of shares. The value of trading was EUR 217.9 million. The trading price varied between EUR 14.60 and EUR 23.00. The closing price was EUR 15.57. The market capitalisation was EUR 604.1 million (EUR 971.8 million) at the end of the period. T th
t the beginning of the year the company's registered share capital amounted to EUR 19,392,187. Since 4 shares. A the beginning of the year, 12,500 shares have been subscribed for pursuant to 2005A share options. After these subscriptions the share capital is EUR 19,398,437, and the number of the shares 38,796,87
2005A crease by UR 1,000 to EUR 19,399,437 and the number of the shares will increase to 38,798,874 shares after the On 28 July 2008, the Board approved the subscriptions of 2,000 new shares made pursuant to the share options. As a result of these subscriptions, the company's registered share capital will in E increase has been entered in the Trade Register.
2005, 600,000 share options were issued, each entitling its holder to subscribe for one share of Lassila T Advance y, a wholly-owned subsidiary of Lassila & Tikanoja plc, holds 8,000 2005A options, 22,000 2005B options In & Tikanoja plc. In the beginning of the exercise period, 25 key persons held 162,000 2005A options. 33 key persons hold 178,000 2005B options and 42 key persons hold 226,500 2005C options. L& O and 3,500 2005C options.
tions is EUR 14.22, for 2005B options EUR 16.98 and for 2005C ptions EUR 26,87. The exercise period for 2005A options is 2 November 2007 to 29 May 2009, for 2005B ptions 3 November 2008 to 31 May 2010, and for 2005C options 2 November 2009 to 31 May 2011. The exercise price for the 2005A op o o
he outstanding options issued under the share option plan 2005 entitle their holders to subscribe for a T maximum of 1.4% of the current number of shares. The 2005A options have been listed on the OMX Nordic Exchange Helsinki since 2 November 2007.
he Annual General Meeting of the year 2008 resolved to issue 230,000 share option rights, each entitling are of Lassila & Tikanoja plc. 43 key persons hold 226,500 options and &T Advance Oy 3,500 options. T its holder to subscribe for one sh L
options shall, as per e dividend record date, be reduced by the amount of dividend which exceeds 70% of the profit per share d prior to the share ubscription are deducted from the subscription price. The exercise price shall, however, always amount to The exercise price for the 2008 options is EUR 16.27. The exercise price of the share th for the financial period to which the dividend applies. However, only such dividends whose distribution has been agreed upon after the option pricing period and which have been distribute s at least EUR 0.01. The exercise period will be from 1 November 2010 to 31 May 2012.
mber of shares. As a result of the exercise of the outstanding 2008 share options, the number of shares may increase by a maximum of 226,500 new shares, which is 0.6% of the current nu
financial period, the company had 6,123 (4,795) shareholders. Nominee-registered oldings accounted for 9.8% (15.1%) of the total number of shares. At the end of the h
olding of the shares nd votes in Lassila & Tikanoja plc had exceeded the threshold of 10%. On 20 May 2008, Ilmarinen Mutual Pension Insurance Company announced that its h a
l Pension Insurance Company announced that its holding of the shares nd votes in Lassila & Tikanoja plc had fallen to 4.52%. On 26 March 2008, Varma Mutua a
The Board of Directors is not authorised to effect any share issues or to launch a convertible bond or a bond with warrants. Neither is the Board authorised to decide on the repurchase nor disposal of the company's own shares.
e President and CEO from liability. The AGM resolved that a dividend of EUR 0.55, a total of EUR 21.3 The Annual General Meeting of Lassila & Tikanoja plc, which was held on 1 April 2008, adopted the financial statements for the financial year 2007 and released the members of the Board of Directors and th million, as proposed by the Board of Directors, be paid for the financial year 2007. The dividend payment date was 11 April 2008.
r of the members of the Board of Directors six. The llowing Board members were re-elected to the Board until the end of the following AGM: Eero ila and Juhani Maijala. Heikki Bergholm and Matti Kavetvuo were The Annual General Meeting confirmed the numbe fo Hautaniemi, Lasse Kurkilahti, Juhani Lass elected as new members for the same term.
PricewaterhouseCoopers Oy, Authorised Public Accountants, were elected auditors with Heikki Lassila, Authorised Public Accountant, acting as Principal Auditor.
he Annual General Meeting approved the Board's proposal to issue 230,000 share options to key lc. T personnel of the Lassila & Tikanoja Group and/or to a wholly-owned subsidiary of Lassila & Tikanoja p
ni aijala as Chairman of the Board and Juhani Lassila as Vice Chairman. At its organising meeting following the Annual General Meeting, the Board of Directors re-elected Juha M
ssila & Tikanoja had obtained possession of the shares over a eriod of several years and they no longer had any connection to the business operations of the company On 22 January 2008, Lassila & Tikanoja sold its holding in the shares of Ekokem Oy Ab to Ilmarinen Mutual Pension Insurance Company. La p and were, consequently, not essential for them. A tax-free capital gain arising from the sale was recognised in the financial statements for the first quarter of the year 2008. The positive effect of the sale on the profit for the period will be EUR 14.2 million.
e previous year. reviously the company estimated that the full-year financial performance will remain at the same level as In a release disclosed on 22 July 2008, the company announced that the full-year operating profit excluding non-recurring and imputed items is estimated to be somewhat lower than in th P in the previous year.
inue to increase at the same rate as in e first half of the year, the delay in transferring the cost increase to sales prices may hamper profitability. vatives associated with L&T Recoil's business depend on the act on L&T Biowatti's earnings evelopment. A planned amendment to Latvian waste legislation may have adverse effects on the If the prices of crucial production factors such as transport fuels cont th Changes in the fair values of oil deri development of world market prices for oil, and may have a substantial effect on the operating profit of Industrial Services. If the next winter is mild, this will have a negative imp d competition situation for waste management in Riga towards the end of the year.
sts increases to sales prices will impose challenges. The demand outlook in Lassila & Tikanoja's markets remain mostly good but the adaptation of the co and transferring the cost
ull-year net sales are expected to increase by approximately 10 per cent. The operating profit excluding non-recurring and imputed items is expected to be somewhat lower than in the previous year. However, the capital gain from Ekokem shares will improve earnings. F
ain good. Increasing the capacity of recycling lants and landfills will continue, as well as geographical expansion in Russia. During the rest of the year, ment The demand for Environmental Services is expected to rem p L&T Biowatti will continue to invest in strengthening its procurement organisation and collection equip for forest processed chips, as well as start the production of wood pellets. A potential slowdown in new construction may be reflected in the intake volumes of recycling plants. Environmental Services' operating profit is expected to remain at the same level as in the previous year.
he market outlook for Property and Office Support Services remains good even though the competitive re division's ort Services is expected to fall somewhat short of the revious year's level. T situation is expected to remain challenging and margins are expected to remain tight. Costs in Finland a increased through pay rises and increases in social security costs and transport fuel prices. The international operations are expected to improve their performance but still remain in the red. The operating profit from Property and Office Supp p
ositive; however, uncertainties in the forest dustry will be reflected in services produced by the division. Rapid fluctuations in demand are expected e end vel. The market outlook for Industrial Services remains mostly p in to continue towards the end of the year. The L&T Recoil re-refinery is expected to be completed at th of the year. The operating profit from Industrial Services is expected to fall short of the previous year's le
ill be on profitability provement. Investments will be lower than in the previous year. The main emphasis w im
| BREAKDOWN OF OPERATING PRO FIT EXCLUDING NON-RECURRING AND IMPUTED ITEMS |
||||||||
|---|---|---|---|---|---|---|---|---|
| 4-6/ | 4-6/ | 1-6 / |
1-6/ | 1-12/ | ||||
| EUR million | 2008 | 2007 | 2008 | 2007 | 2007 | |||
| Operating profit | 10.2 | 12.0 | 33.0 | 21.2 | 48.8 | |||
| Non-recurring items | ||||||||
| Loss on sale of landfill operations of Salvor and | ||||||||
| integration of the remaining Salvor's operations | 1.3 | 1.3 | 2.3 | |||||
| Reorganisation of Property and Office Support | ||||||||
| Services operations in Russia | 0.4 | |||||||
| Gain on sale of the shares of Ekokem | -14.3 | |||||||
| Oil derivatives | 1.1 | 0.5 | 1.4 | 1.6 | 2.8 | |||
| Operating profit exclud ing non-recurring and |
||||||||
| im puted items |
11.3 | 13.8 | 20.1 | 24.1 | 54.3 |
This interim financial report is in compliance with IAS 34, Interim Financial Reporting Standard. The same accounting policies as in the annual financial statements for the year 2007 have been applied. These interim financial statements have been prepared in accordance with the IFRS standards and interpretations as adopted by the EU. Forthcoming standards and interpretations are presented in the accounting policies in Annual Report 2007. Income tax expense is based on the estimated average annual income tax rate, which would be applicable to expected total annual earnings.
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 financial statements have not been audited.
| EUR 1000 | $4 - 6/$ 2008 |
$4 - 6/$ 2007 |
$1 - 6/$ 2008 |
$1 - 6/$ 2007 |
$1 - 12/$ 2007 |
|---|---|---|---|---|---|
| Net sales | 154 364 | 138 759 | 301 695 | 267 872 | 554 613 |
| Cost of goods sold | -135 939 | $-119485$ | $-267741$ | -231 927 | -478 151 |
| Gross profit | 18 4 25 | 19 274 | 33 954 | 35 945 | 76 462 |
| Other operating income | 946 | 986 | 15 872 | 1628 | 3834 |
| Selling and marketing costs | -4 329 | $-3888$ | -8 220 | $-7710$ | $-14616$ |
| Administrative expenses | $-3216$ | $-2950$ | -6 291 | $-5889$ | -11 614 |
| Other operating expenses | $-1628$ | $-1.382$ | $-2282$ | $-2773$ | $-5291$ |
| Operating profit | 10 198 | 12 040 | 33 033 | 21 201 | 48775 |
| Finance income | 436 | 464 | 816 | 779 | 1661 |
| Finance costs | $-1426$ | $-1.388$ | $-2906$ | $-2555$ | $-5978$ |
| Profit before tax | 9 2 0 8 | 11 116 | 30 943 | 19 4 25 | 44 458 |
| Income tax expense | $-2440$ | $-3332$ | -4 442 | $-5575$ | -12 291 |
| Profit for the period | 6768 | 7 7 8 4 | 26 501 | 13850 | 32 167 |
| Attributable to: | |||||
| Equity holders of the company | 6778 | 7 704 | 26 502 | 13 598 | 31 909 |
| Minority interest | -10 | 80 | -1 | 252 | 258 |
| Earnings per share for profit attributable to the equity holders of the company: | |||||
| Earnings per share, EUR | 0.17 | 0.20 | 0.68 | 0.35 | 0.83 |
| Earnings per share, EUR - diluted | 0.17 | 0.20 | 0.68 | 0.35 | 0.82 |
| E UR 1000 |
6/2008 | 6/2007 | 12/2007 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 119 900 | 125 815 | 119 946 |
| Intangible assets arising from business combinations | 27 703 | 32 137 | 30 6 00 |
| Other intangible assets | 12 011 | 9 138 | 11 571 |
| Total | 159 61 4 |
167 090 | 162 117 |
| Property, plant and equipment | |||
| Land | 3 503 | 3 251 | 3 53 2 |
| Buildings and constructions | 38 039 | 36 478 | 39 594 |
| Machinery and equipment | 106 703 | 93 127 | 103 83 2 |
| Other | 82 | 288 | 82 |
| Advance payments and construction in progress | 17 908 | 4 227 | 4 830 |
| Total | 166 235 | 137 371 | 151 870 |
| Other non-current assets | |||
| Investments in associates | 3 | ||
| Available-for-sale investme nts |
402 | 2 976 | 410 |
| Finance lease receivables | 4 47 2 |
3 435 |
3 823 |
| Deferred i ncome tax assets |
1 4 35 |
466 | 924 |
| Other receivables | 634 | 226 | 236 |
| Total | 6 943 | 7 106 | 5 393 |
| Total non-current assets | 3 32 792 |
3 11 567 |
319 380 |
| Current assets | |||
| Inventories | 14 518 |
8 669 | 14 350 |
| Trade and other receivables | 80 088 |
7 2 092 |
71 824 |
| Derivative receivab les |
1 550 |
431 | 1 189 |
| Advance paymen ts |
2 35 4 |
2 274 | 774 |
| Available-for-sa le investments |
2 995 |
3 295 | 21 287 |
| Cash and cash equ ivalents |
5 535 |
10 014 | 9 521 |
| Total current assets | 1 07 040 |
96 775 | 118 945 |
| TOTAL ASSETS | 439 832 | 408 342 | 438 325 |
| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity attributable to equity holders of the company |
|||
| Share cap ital |
19 398 | 19 358 | 19 392 |
| Share premium reserve | 50 645 | 49 725 | 50 474 |
| Other reserves | -95 | 163 | 14 055 |
| Reta ined earnings |
97 252 | 85 942 | 86 327 |
| Profit for the period | 26 502 | 13 598 | 31 909 |
| T otal |
19 3 702 |
16 8 786 |
20 2 157 |
| M inority interest |
214 | 2 706 | 187 |
| T otal equity |
193 916 | 1 71 492 |
202 344 |
| L iabilities |
|||
| Non-c urrent liabilities |
|||
| Deferred income tax liabili ties |
29 726 | 30 221 | 29 842 |
| P ension obligations |
591 | 45 7 |
542 |
| P rovisions |
1 113 |
806 | 953 |
| In terest-bearing liabilities |
6 8 558 |
6 4 360 |
8 1 411 |
| O ther liabilities |
690 | 484 | 500 |
| T otal |
100 678 |
96 328 |
113 248 |
| Current liabilities | |||
| Interest-bearing liabilities | 51 766 | 53 892 | 35 757 |
| T rade and other payables |
91 102 | 86 155 | 85 183 |
| Derivative liabilitie s |
2 192 | 897 | |
| Tax liabilities | 153 | 304 | 794 |
| Provisions | 25 | 171 | 102 |
| Total | 14 5 238 |
140 522 |
12 2 733 |
| Total liabilities | 24 5 916 |
23 6 850 |
235 981 |
| TOTAL EQUITY AND LIABI LITIES |
43 9 832 |
4 08 342 |
43 8 325 |
| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit for the period |
26 502 | 13 850 | 32 167 |
| Adjustments | |||
| Income tax expense | 4 442 | 5 575 | 12 291 |
| Depreciation and amortis ation and impairment |
18 618 | 15 821 | 33 432 |
| Finance income and costs |
2 090 | 1 776 |
4 317 |
| Oil derivatives | 1 361 | 1 183 | 2 947 |
| Gain on sale of share s |
-14 258 | ||
| Othe r |
-1 308 | 16 | -859 |
| Net cash generat ed from operating activities before change in working |
|||
| capital | 37 447 | 38 221 | 84 295 |
| Change in wo rking capital |
|||
| Change in trade and o ther receivables |
-9 407 | -5 645 | -4 903 |
| Change in inventories | -182 | -1 097 | -6 824 |
| Change in trade an d other payables |
7 310 | 967 | -1 450 |
| Change in wo rking capital |
-2 279 | -5 775 |
-13 177 |
| Interest paid | -2 576 | -1 859 |
-5 104 |
| Interes t received |
795 | 636 | 1 460 |
| In come tax paid |
-7 486 | -6 565 | -12 041 |
| Net cash from ope rating activities |
25 901 | 24 658 | 55 433 |
| Cash flows from investin g activities |
|||
| Acquisition of subs idiaries and businesses, net of cash acquired |
-420 | -38 622 | -37 050 |
| Proceeds fro m subsidiaries and businesses, net of sold cash |
1 878 |
||
| Purchase s of property, plant and equipment and intangible assets |
-31 180 |
-16 413 |
-49 109 |
| Proc eeds from sale of property, plant and equipment and intangible |
|||
| assets | 1 278 | 2 888 | 2 261 |
| Purchases of available-for-sale investments | -102 | -147 | |
| Change in other non-current receiva bles Proceeds from sale of available-for-sale investments |
-1 16 807 |
24 45 |
1 1 098 |
| Dividends received | 3 | 4 | |
| Net cash used in investment activities | -13 513 | -52 180 | -81 064 |
| Cash flows from financing activities | |||
| Proceeds from share issue | 178 | 2 153 | 2 936 |
| Change in short-term borrowings | 14 414 | 20 352 | 23 011 |
| Proceeds from long-term borrowings | 30 000 | 50 302 | |
| Repayments of long-term borrowings | -11 109 | -15 037 | -39 909 |
| Dividends paid | -21 315 | -21 360 | -21 360 |
| Net cash generated from financing activities | -17 832 | 16 108 | 14 980 |
| Net change in liquid assets | -5 444 | -11 414 | -10 651 |
| Liquid assets at beginning of period | 14 008 | 24 790 | 24 790 |
| Effect of changes in foreign exchange rates | -36 | -66 | -131 |
| Change in fair value of current available-for-sale investments | 2 | -1 | |
| Liquid assets at end of period | 8 530 | 13 309 | 14 008 |
| Liquid assets | |||
| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
| Cash | 5 535 | 10 014 | 9 521 |
| Certificates of deposit and commercial papers | 2 995 | 3 295 | 4 487 |
| Total | 8 530 | 13 309 | 14 008 |
| Share | premium | Share Revaluation and other |
Retained | Equity attributable to equity holders of the |
Minority | Total | |
|---|---|---|---|---|---|---|---|
| EUR 1000 | capital | reserve | reserves | earnings | company | interest | equity |
| Equity at 1.1.2008 Hedging reserve, |
19 392 | 50 474 | 14 055 | 118 236 | 202 157 | 187 | 202 344 |
| change in fair value Current available for sale investments, change in |
371 | 371 | 371 | ||||
| fair value Translation differences |
-14 237 $-284$ |
-14 237 $-284$ |
28 | -14 237 $-256$ |
|||
| Items recognised | |||||||
| directly in equity | $-14150$ | $-14150$ | 28 | $-14122$ | |||
| Profit for the period | 26 502 | 26 502 | -1 | 26 502 | |||
| Total recognised | |||||||
| income and expenses Share option remuneration Subscriptions |
$-14150$ | 26 502 | 12 351 | 27 | 12 3 78 | ||
| pursuant to 2005 options Remuneration expense of |
6 | 172 | 178 | 178 | |||
| share options | 339 | 339 | 339 | ||||
| Dividends paid | $-21323$ | $-21323$ | $-21323$ | ||||
| Equity at 30.6.2008 | 19 398 | 50 645 | -95 | 123 754 | 193 702 | 214 | 193 916 |
| Equity at 1.1.2007 | 19 264 | 47 666 | 326 | 106 904 | 174 160 | 2709 | 176869 |
| Hedging reserve, change in fair value Current available |
207 | 207 | 207 | ||||
| for sale investments, | -7 | $-7$ | |||||
| change in fair value Translation differences |
$-363$ | $-363$ | -7 $-363$ |
||||
| Items recognised | |||||||
| directly in equity | $-163$ | $-163$ | $-1$ | $-163$ | |||
| Profit for the period | 13 5 98 | 13598 | 252 | 13850 | |||
| Total recognised | |||||||
| income and expenses Share option remuneration |
$-163$ | 13 598 | 13 4 35 | 251 | 13686 | ||
| Subscriptions pursuant to 2002 options |
94 | 2059 | 2 1 5 3 | 2 1 5 3 | |||
| Remuneration expense of share options Dividends paid |
228 $-21190$ |
228 $-21190$ |
$-180$ | 228 $-21370$ |
|||
| Purchase of a minority | $-74$ | -74 | |||||
| Equity at 30.6.2007 | 19 358 | 49 725 | 163 | 99 540 | 168786 | 2 706 | 171492 |
| 4-6 / 2008 |
4-6/ 2007 |
1-6/ 2008 |
1-6/ 2007 |
1-12/ 2007 |
|
|---|---|---|---|---|---|
| Earnings per share, EUR | 0.17 | 0.20 | 0.68 | 0.35 | 0.83 |
| Earnings per share, EUR - d iluted |
0.17 | 0.20 | 0.68 | 0 .35 |
0.82 |
| Cash flows from o perating activities pe r share , EU R |
0.37 | 0.40 | 0.67 | 0 .64 |
1.43 |
| EVA, EUR million | 2.8 | 6.0 | 1 8.6 |
9.6 | 2 3.0 |
| Capital expenditure, EU R 1000 |
17 328 | 17 516 | 31 421 | 64 701 | 93 187 |
| Depreciation and amo rtisation, EUR 1000 |
9 379 | 8 103 | 18 618 | 15 821 | 33 432 |
| Equity per share, EUR | 4.99 | 4. 36 |
5.21 | ||
| Return on equity, ROE, % |
26.8 | 15.9 | 17.0 | ||
| Return on invested capital, ROI, % |
21.4 | 16 .1 |
17.6 | ||
| Equity ratio, % | 44.5 | 42 .2 |
46.6 | ||
| Gearing, % | 57.7 | 61 .2 |
42.7 | ||
| Net interest-bearing liabili ties, EUR 1000 |
1 11 795 |
104 9 43 |
86 360 | ||
| Average number of employees in full-tim e equivalents Total number of full-time and part -ti me em ploy ees at |
7 972 | 7 398 | 7 819 | ||
| end of period | 10 087 | 9 486 | 9 387 | ||
| Adjusted number of shares, 1000 shares |
|||||
| average during the period |
38 794 | 38 587 |
38 670 | ||
| at end of period | 38 797 | 38 716 | 38 784 | ||
| average during pe riod, dilute d |
38 830 | 3 8 824 |
38 843 |
| EUR 1000 | 4-6/ 2008 |
4-6/ 2007 |
Change % |
1-6/ 2008 |
1-6/ 200 7 |
Change % |
1-12/ 2007 |
|---|---|---|---|---|---|---|---|
| Environmental Services | 76 639 | 71 744 | 6.8 | 152 119 |
13 7 14 2 |
10 .9 |
279 845 |
| Property and Office Support |
|||||||
| Services | 5 7 114 |
48 660 | 17 .4 |
112 6 88 |
9 7 380 |
15.7 | 2 04 141 |
| Industrial Services | 22 052 | 19 572 | 12. 7 |
39 42 7 |
3 5 722 |
10.4 | 75 479 |
| G roup admin. and other |
3 | 6 | 10 | ||||
| Inter-division net sales | -1 441 | -1 220 | -2 539 | -2 37 8 |
-4 862 |
||
| L&T total | 154 364 | 138 759 | 11.2 | 301 695 | 267 87 2 |
12 .6 |
554 613 |
| 4-6/ | 4-6/ | 1-6/ | 1 -6/ |
1- 12/ |
||||||
|---|---|---|---|---|---|---|---|---|---|---|
| EUR 1000 | 2008 | % | 2007 | % | 2008 | % | 2007 | % | 20 0 7 |
% |
| Environmental Services Property and O ffice Support |
8 151 10.6 | 8 104 | 1 1.3 |
16 574 | 10.9 | 16 875 | 12.3 | 34 977 | 12.5 | |
| S ervices |
1 156 | 2.0 | 1 690 | 3.5 | 2 765 | 2.5 | 2 777 | 2.9 | 11 005 | 5.4 |
| Industrial Services | 1 162 | 5.3 | 2 595 | 13.3 | 284 | 0.7 | 2 456 | 6.9 | 4 769 | 6.3 |
| Group admin. and other | -271 | -349 | 13 410 | -907 | -1 9 6 7 |
|||||
| L&T total | 10 198 | 6.6 12 040 | 8.7 | 33 033 | 10.9 | 2 1 201 |
7. 9 |
48 7 5 7 |
8.8 |
| 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ | |
|---|---|---|---|---|---|
| EUR 1000 | 2008 | 2007 | 2008 | 2007 | 2007 |
| Assets | |||||
| Environmental Services | 258 219 | 243 519 | 250 980 | ||
| Property and Office Support Services | 77 139 | 76 546 | 75 508 | ||
| Industrial Services | 90 156 | 68 625 | 78 311 | ||
| Group admin. and other | 381 | 2 908 | 2 814 | ||
| Non-allocated assets | 13 937 | 16 744 | 30 712 | ||
| L&T total | 439 832 | 408 342 | 438 325 | ||
| Liabilities | |||||
| Environmental Services | 41 149 | 43 132 | 36 935 | ||
| Property and Office Support Services | 33 532 | 30 251 | 32 447 | ||
| Industrial Services | 19 217 | 11 888 | 17 046 | ||
| Group admin. and other | 627 | 1 850 | 667 | ||
| Non-allocated liabilities | 151 391 | 149 729 | 148 886 | ||
| L&T total | 245 916 | 236 850 | 235 981 | ||
| Capital expenditure | |||||
| Environmental Services | 7 977 | 6 547 | 14 314 | 43 853 | 60 704 |
| Property and Office Support Services | 2 338 | 8 839 | 4 773 | 17 335 | 20 040 |
| Industrial Services | 7 013 | 2 130 | 12 334 | 3 470 | 12 267 |
| Group admin. and other | 43 | 176 | |||
| L&T total | 17 328 | 17 516 | 31 421 | 64 701 | 93 187 |
| Depreciation and amortisation | |||||
| Environmental Services | 5 690 | 5 054 | 11 328 | 9 737 | 20 330 |
| Property and Office Support Services | 2 152 | 1 766 | 4 243 | 3 518 | 7 782 |
| Industrial Services | 1 537 | 1 283 | 3 045 | 2 565 | 5 315 |
| Group admin. and other | 1 | 2 | 1 | 5 | |
| L&T total | 9 380 | 8 103 | 18 618 | 15 821 | 33 432 |
| EUR 1000 | 4-6/ 2008 |
1-3/ 2008 |
10-12/ 2 007 |
7-9/ 2 007 |
4-6/ 2 007 |
1-3/ 20 7 0 |
10-12/ 200 6 |
7-9/ 2006 |
|---|---|---|---|---|---|---|---|---|
| Net sales | ||||||||
| Environmental Services | 76 639 |
7 5 4 80 |
74 788 |
67 9 15 |
71 74 4 |
65 3 98 |
53 76 5 |
52 696 |
| Property and Office | ||||||||
| Support S ervices |
57 114 |
5 5 5 74 |
54 798 |
51 9 63 |
48 660 |
48 7 20 |
44 58 4 |
41 463 |
| Industrial Services | 22 052 |
1 7 3 75 |
19 867 |
19 89 0 |
19 572 |
16 1 50 |
18 25 2 |
18 500 |
| Group admin. and other | 1 | 3 | 3 | 3 | 3 | 19 | ||
| Inter-division net sales | -1 4 41 |
- 1 0 98 |
-1 282 |
-1 202 | -1 220 |
-1 1 58 |
-1 242 | -1 030 |
| L&T total | 154 364 |
14 331 7 |
148 172 |
138 5 69 |
138 75 9 |
129 1 13 |
115 362 | 111 648 |
| Operating profit | ||||||||
| Environmental Services | 8 1 51 |
8 423 | 8 3 72 |
9 7 30 |
8 104 | 8 77 1 |
7 10 4 |
10 056 |
| Property and Office |
||||||||
| S upport Services |
1 156 | 1 609 | 4 015 | 4 213 | 1 690 | 1 087 | 1 154 | 4 833 |
| Industrial Services | 1 162 |
-87 8 |
180 | 2 133 |
2 59 5 |
-13 9 |
3 0 25 |
3 730 |
| Group admin. and other | -271 | 13 681 | -468 | -601 | -349 | -558 | -971 | 1 233 |
| L&T total | 10 198 |
22 835 | 12 0 9 9 |
15 475 |
12 040 | 9 16 1 |
10 3 12 |
19 852 |
| Operating margin | ||||||||
| Environmental Services | 10.6 | 11.2 | 1 1. 2 |
14.3 | 11. 3 |
13. 4 |
1 3.2 |
1 9.1 |
| P roperty and Office |
||||||||
| Support Services | 2.0 | 2.9 | 7.3 | 8.1 | 3.5 | 2.2 | 2.6 | 11.7 |
| In dustrial Services |
5.3 | -5.1 | 0.9 | 10.7 | 13.3 | -0.9 | 16.6 | 20.2 |
| L &T total |
6.6 | 15.5 | 8 .2 |
1 1.2 |
8.7 | 7.1 | 8 .9 |
17.8 |
| Finance costs, net | -990 | -1 100 | -1 247 | -1 294 | -924 | -852 | -366 | -740 |
| Share of profits of |
||||||||
| associates | 18 | |||||||
| Profit before tax | 9 208 | 21 735 | 10 852 | 14 181 | 11 116 |
8 309 | 9 96 4 |
19 112 |
In September 2007, L&T obtained full ownership of Salvor Oy. The busines vor we of the operations were transferred from Environm rvice ustri he figures for the comparison period have been adjusted accordingly. s operations of Sal re reorganised and most ental Se s into Ind al Services. T
| Fair values used in | Carrying amounts | |
|---|---|---|
| EUR 1000 | consolidation | before consolidation |
| Property, plant and equipment | 116 | 116 |
| Customer contracts | 158 | |
| Agreements on prohibition of competition | 81 | |
| Trade and other receivables | 10 | 10 |
| Total assets | 366 | 126 |
| Net assets | 366 | 126 |
| Goodwill arising from acquisitions | 55 | |
| Acquisition cost | 420 | |
| Acquisition cost | 420 | |
| Cash flow effect of acquisitions | 420 |
The cleaning services business of Siivouspalvelu Siivoset Ov was acquired into Property and Office Support Services on 1 January 2008, the cleaning services business of Siivousliike Lainio Oy on 1 March 2008 and the property maintenance services business of Rantakylän Talonhuolto Oy on 1 April 2008. The business of Obawater Oy was acquired into waste water services within Industrial Services on 15 February 2008.
The aggregate net sales of the acquired companies totalled EUR 680 thousand. The aggregate acquisition cost was EUR 420 thousand, of which EUR 55 thousand was recognised in goodwill. All itemisations in accordance with IFRS 3 are not presented because the figures are immaterial.
The accounting policy concerning business combinations is presented in Annual Report 2007 under Note 2 of the consolidated financial statements and under Summary on significant accounting policies.
| EUR 1000 | 1-6/2008 | 1-6/2007 | 1-12/2007 |
|---|---|---|---|
| Carrying amount at beginning of period | 16 2 117 |
1 24 407 |
124 407 |
| Business acquisitions | 294 | 45 552 | 41 885 |
| Other capital expenditure | 1 823 | 1 844 | 5 403 |
| Disposals | -2 | -1 073 | -1 546 |
| Amortisation and impairment | -4 506 | -3 514 | -7 921 |
| Transfers between items | 228 | ||
| Exchange differences | -112 | -126 | -339 |
| Carrying amount at end of perio d |
159 614 | 167 09 0 |
162 117 |
| EUR 1000 | 1-6/2008 | 1 -6/2007 |
1-12/2007 |
|---|---|---|---|
| Carrying amount at beginning of perio d |
151 870 | 134 03 8 |
134 038 |
| Business acquisitions | 116 | 1 756 | 5 574 |
| Other capital expenditure | 29 188 | 15 462 | 40 147 |
| Disposals | -648 | -1 533 | -2 096 |
| Depreciation and impairment | -14 112 | -12 306 | -25 511 |
| Transfers between items | -228 | ||
| Exchange differences | -179 | -46 | -54 |
| Carryin g amount at end of period |
166 235 | 137 371 | 151 870 |
| EUR 1000 | 1-6/2008 | 1-6/2007 | 1-12/2007 |
|---|---|---|---|
| Intangible assets | 1 616 | 140 | 70 |
| Property, plant and equipment | 18 806 | 6 301 | 8 646 |
| Total | 20 422 | 6 441 | 8 716 |
| The Group's share of capital commitments of joint ventures |
15 780 | 4 800 | 8 584 |
(Joint ventures)
| EUR 1000 | 1-6/2008 | 1-6/2007 | 1-12/2007 |
|---|---|---|---|
| Sales | 574 | 563 | 1 851 |
| Purchases | 185 | 247 | |
| Non-current receivables | |||
| Capital loan receivable | 5 396 | 3 296 | 2 646 |
| Current receivables | |||
| Trade receivables | 55 | 126 | 110 |
| Current payables | |||
| Trade payables | 5 |
| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
|---|---|---|---|
| Securities for own commitments | |||
| Real estate mortgages | 10 192 |
10 514 | 10 114 |
| Corporate mortgages | 1 0 000 |
1 2 500 |
1 5 000 |
| Other secu rities |
1 86 |
156 | 182 |
| Bank guarantees required for environmental permits |
4 155 | 2 430 | 4 309 |
| Other securities are security depos its. |
|||
| T he Group has given no pledges, mortgages or guarantees on behalf of outsiders. |
|||
| Operating lease liabilities | |||
| E UR 1000 |
6/2008 | 6/2007 | 12/2007 |
| Maturity not later than one year | 8 034 | 6 181 | 7 424 |
| Maturity later than one year and not later than five years |
16 214 | 12 938 | 15 611 |
| Maturity later than five years |
5 492 |
3 318 | 3 905 |
| Total | 29 740 | 22 437 | 26 940 |
| Derivative financial instruments | |||
| Interest rate swaps | |||
| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
| Nominal values of interest rate swaps* | |||
| Maturity not later than one ye ar |
15 000 | 15 500 | 7 500 |
| M aturity later than one year and not later than five years |
15 000 | 15 000 | |
| Total | 15 000 | 30 500 | 22 500 |
| Fair value | 301 | 693 | 394 |
| Nominal values of interest rate s waps** |
|||
| Maturi ty not later than one year |
4 629 | 1 429 | 3 029 |
| M aturity later than one year and not later than five years |
18 514 | 5 714 | 18 514 |
| Maturity later than five years | 9 714 | 7 142 | 12 028 |
| Total | 32 857 | 1 4 285 |
3 3 571 |
| Fair value | 1 204 | 799 | 703 |
ot been applied to these interest rate swaps. Changes in fair recognised in finance income and costs. * Hedge accounting under IAS 39 has n values have been
The interest rate swaps are used to hedge cash flow related to a floating rate loan, and hedge under IAS 39 has been applied to it. The hedges hav fective otal c e fair values have been recognised in the hedging fund under equity. ** accounting e been ef , and the t hange in th
| Currency d erivatives |
|||
|---|---|---|---|
| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
| Nominal values of forward contracts* | |||
| Maturity not later than one year | 2 2 59 |
2 046 | 2 184 |
| Fair value | -17 | 5 | 7 |
Hedge accounting under IAS 39 has not been applied to the currency derivatives. Changes in fair values have been recognised in finance income and costs. *
| 1 000 bbl |
6/2008 | 6/2007 | 12/2007 |
|---|---|---|---|
| Volume of crude oil put options | |||
| Maturity not later than one year | 226 | 68 | 182 |
| Maturity later than one y ear and not later than five years |
114 | 340 | 2 26 |
| Total | 340 | 408 | 4 08 |
| Fair value, EUR 1000 | 18 | 8 35 |
83 |
| Volume of sold crude oil futures | |||
| M aturity not later than one year |
42 | 42 | 42 |
| Fair value, EUR 1000 | -2 192 | -409 | -897 |
edge accounting under IAS 39 has not been applied to oil derivatives. Changes in fair values have been expenses. H recognised in other operating
he fair values of the oil options have been determined on the basis of a generally used measurement rivative contracts are based on ma ices at the balance sheet date. T model. The fair values of other de rket pr
Earnings per share:
profit attributable to equity holders of the parent company /adjusted average number of shares
from operating activities/share: ash flow from operating activities as in the cash flow statement / adjusted average number of shares Cash flows c
EVA:
age of four quarters) before taxes 2007: 8.75% operating profit - cost calculated on invested capital (aver WACC WACC 2008: 9.3%
of the parent company / adjusted number of shar ear end Equity/share: profit attributable to equity holders es at y
for the period / shareholders' equity (average)) x 100 Return on equity, % (ROE): (profit
nvestment, % (ROI): ring Return on i (profit before tax + interest expenses and other finance costs) / (balance sheet total - non-interest-bea liabilities (average)) x 100
Equity ratio, %: shareholders' equity / (balance sheet total - advances received) x 100
es / shareholders' equity x 100 Gearing, %: net interest-bearing liabiliti
ts Interest-bearing liabilities: Interest-bearing liabilities - liquid asse
008 Helsinki 28 July 2
ASSILA & TIKANOJA PLC L Board of Directors
rjo Jari Sa President and CEO
ntact Jari Sarjo, l. +358 10 636 2810. For further information, please co President and CEO, te
assila & Tikanoja specialises in environmental management and property and plant support services. L&T MX Nordic Exchange Helsinki. L is operative in Finland, Sweden, Latvia, Russia and Norway. Net sales in 2007 amounted to 555 million euro. L&T employs 10000 persons, 2400 of which are located outside Finland. L&T's shares are listed on O
istribution: e Helsinki ww.lassila-tikanoja.com D OMX Nordic Exchang Major media w
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