Quarterly Report • Apr 24, 2013
Quarterly Report
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"Operating profit excluding non-recurring items was in line with our expectations, and we saw a significant improvement in our cash flow from operating activities. Comparable net sales remained at the previous year's level. In the first quarter, the efficiency enhancement measures set in our strategy continued, affecting both business operations and working capital. The financial uncertainty affects our business volumes. We will continue to focus on profitability improvement."
Lassila & Tikanoja's net sales for the first quarter decreased by 2.1% to EUR 167.7 million (EUR 171.3 million). Operating profit was EUR 6.3 million (EUR 4.9 million), representing 3.8% (2.9%) of net sales, and operating profit excluding non-recurring items was EUR 6.8 million (EUR 5.0 million). Earnings per share were EUR 0.12 (EUR 0.07).
Comparable net sales includes EUR 4.0 million worth of net sales generated by L&T Recoil and the divested parts of the eco product business.
Operating profit grew by EUR 1.4 million from the comparison period to EUR 6.3 million. Operating profit was reduced by the non-recurring reorganisation costs of EUR 0.5 million (EUR 0.1 million).
| Financial summary | ||||
|---|---|---|---|---|
| 1-3/2013 | 1-3/2012 | Change% | 1-12/2012 | |
| Net sales, EUR million | 167.7 | 171.3 | -2.1 | 674.0 |
| Operating profit excluding non-recurring | ||||
| items, EUR million* | 6.8 | 5.0 | 33.7 | 47.4 |
| Operating profit, EUR million | 6.3 | 4.9 | 27.7 | 48.4 |
| Operating margin, % | 3.8 | 2.9 | 7.2 | |
| Profit before tax, EUR million | 5.9 | 4.0 | 48.3 | 43.0 |
| Earnings per share, EUR | 0.12 | 0.07 | 71.4 | 0.89 |
| EVA, EUR million | 0.9 | -1.5 | 24.1 |
The division's net sales for the first quarter were down by 8.0% to EUR 60.2 million (EUR 65.5 million). Operating profit totalled EUR 6.2 million (EUR 4.3 million) and operating profit excluding non-recurring items was EUR 6.2 million (EUR 4.3 million).
The division's net sales fell following the slowdown in construction, which reduced the demand for interchangeable platforms and the construction waste recycling volumes. Meanwhile in waste
management, demand has remained normal. Recycled raw material volumes decreased in the first quarter following a decline in retail sales.
Comparable net sales includes EUR 4.0 million worth of net sales generated by L&T Recoil and the divested parts of the eco product business.
Profitability improved thanks to efficiency improvement measures taken in 2012.
The division's net sales for the first quarter totalled EUR 13.7 million (EUR 12.9 million), showing an increase of 6.2%. Operating loss totalled EUR 0.5 million (operating loss EUR 1.3 million) and operating profit excluding non-recurring items was EUR 0.5 million (operating loss EUR 1.3 million).
Healthy demand for process cleaning boosted net sales. The late arrival of spring had a negative effect on the demand for sewer maintenance services and environmental construction in the first quarter.
Although the division recorded a loss, as expected, the loss was smaller than in the comparison period thanks to the healthy profitability in hazardous waste recycling services.
The division's net sales for the first quarter were down by 4.8% to EUR 75.8 million (EUR 79.6 million). Operating profit totalled EUR 0.4 million (EUR 1.6 million) and operating profit excluding non-recurring items was EUR 0.8 million (EUR 1.7 million).
The division's net sales declined from the comparison period due to lower demand for damage repair services.
The decrease in net sales in technical systems services and damage repair services, resulting from the smaller number of damage repair orders than in the comparison period, had a negative impact on the division's profitability. The Facility Services division is currently taking efficiency enhancement measures designed to improve profitability. Profitability of the cleaning business improved from the comparison period.
First quarter net sales of Renewable Energy Sources (L&T Biowatti) were up by 23.8% to EUR 21.8 million (EUR 17.6 million). The division recorded an operating profit of EUR 1.0 million (EUR 0.8 million), and an operating profit excluding non-recurring items of EUR 1.0 million (EUR 0.8 million).
There was a significant improvement in the division's net sales from the comparison period, due to increased demand for wood-based fuels.
The increase in operating profit is largely attributed to net sales growth. Meanwhile profitability suffered from the weaker energy content and higher logistics costs.
| EUR million | 1-3/2013 | 1-3/2012 | 1-12/2012 |
|---|---|---|---|
| Operating profit | 6.3 | 4.9 | 48.4 |
| Non-recurring items: | |||
| Gain on sale of holding in L&T Recoil Oy | -4.2 | ||
| Impairment of hazardous waste treatment facilities | 0.5 | ||
| Gain on sale of eco product business | -0.2 | ||
| Restructuring costs | 0.5 | 0.1 | 2.9 |
| Operating profit excluding non-recurring items | 6.8 | 5.0 | 47.4 |
Cash flows from operating activities amounted to EUR 27.0 million (EUR 8.9 million). As a result of efficiency enhancement measures, a total of EUR 12.9 million in working capital was released (EUR 2.5 million tied up).
At the end of the period, interest-bearing liabilities amounted to EUR 97.4 million (EUR 159.0 million). L&T Recoil accounted for EUR 17.7 million of the interest-bearing liabilities in the reference period. Guarantees of EUR 16.4 million given by Lassila & Tikanoja to other providers of finance for these liabilities are still in force. In addition L&T had receivables from EcoStream Group of EUR 3.3 million.
Net interest-bearing liabilities amounted to EUR 83.6 million, showing an increase of EUR 1.3 million from the beginning of the year and a decrease of EUR 68.7 million from the comparison period.
Net finance costs decreased significantly in the first quarter and amounted to EUR 0.4 million (EUR 1.0 million). Net finance costs were 0.2% (0.6%) of net sales.
The average interest rate on long-term loans (with interest-rate hedging) was 2.2% (3.1%). Long-term loans totalling EUR 23.4 million will mature during the rest of the year.
The equity ratio was 46.3% (39.7%) and the gearing rate 38.9 (75.4). Liquid assets at the end of the period amounted to EUR 13.8 million (EUR 7.8 million).
Of the EUR 100 million commercial paper programme, EUR 16 million (EUR 46 million) was in use at the end of the period. A committed limit totalling EUR 30.0 million, was not in use, as was the case in the comparison period.
The Annual General Meeting held on 12 March 2013 resolved that the profit for 2012 be placed in retained earnings and that no dividend be paid. A capital repayment of EUR 0.60 per share was paid for the financial year 2012. The capital repayment, totalling EUR 23.2 million, was paid to the shareholders on 22 March 2013.
Capital expenditure totalled EUR 5.9 million (EUR 11.5 million) and was mainly comprised of machine and equipment purchases.
In January-March the average number of employees converted into full-time equivalents was 7,938 (8,119). The total number of full-time and part-time employees at the end of the period was 8,988 (9,229). Of them 7,074 (7,257) people worked in Finland and 1,914 (1,972) people in other countries.
The volume of trading excluding the shares held by the company in Lassila & Tikanoja plc shares on NASDAQ OMX Helsinki in January-March was 1,900,719 which is 4.9% (7.1%) of the average number of outstanding shares. The value of trading was EUR 23.8 million (EUR 31.4 million). The trading price varied between EUR 11.60 and EUR 13.15. The closing price was EUR 12.54. The market capitalisation excluding the shares held by the company was EUR 485.3 million (EUR 426.7 million) at the end of the period.
At the beginning of the year the company held 106,810 of its own share and at the end of the period 92,247 shares, representing 0.2% of all shares and votes.
The company's registered share capital amounts to EUR 19,399,437, and the number of outstanding shares to 38,685,569 shares. The average number of shares excluding the shares held by the company totalled 38,695,703.
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.
At the end of the period, the company had 9,759 (9,460) shareholders. Nominee-registered holdings accounted for 16.6% (15.1%) of the total number of shares.
On 13 March 2013, Nordea Investment Fund Company Finland announced that its holding of the shares and votes in Lassila & Tikanoja plc had risen to 5.5%.
On 10 April 2013, Nordea Investment Fund Company Finland announced that its holding of the shares and votes in Lassila & Tikanoja plc had fallen to 4.98%.
The Annual General Meeting held on 12 March 2013 authorised Lassila & Tikanoja plc's Board of Directors to make decisions on the repurchase of the company's own shares using the company's unrestricted equity. In addition, the Annual General Meeting authorised the Board of Directors to decide on the share issue and the issuance of special rights entitling to shares.
The Board of Directors is authorised to purchase a maximum of 500,000 company shares, which is 1.3% of the total number of shares. The repurchase authorisation will be effective for 18 months.
The Board of Directors is authorised to decide on issuance of new shares or shares possibly held by the Company through share issue and/or issuance of option rights or other special rights entitling to shares, referred to in Chapter 10, Section 1 of the Finnish Companies Act, so that by virtue of the authorisation altogether 500,000 shares, which is 1.3% of the total number of shares, may be issued and/or conveyed at the maximum. The share issue authorisation will be effective for 18 months.
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 12 March 2013, adopted the financial statements for the financial year 2012 and released the members of the Board of Directors and the Presidents and CEO from liability.
The AGM resolved that the profit for 2012 be placed in retained earnings and that no dividend be paid. A capital repayment of EUR 0.60 per share, as proposed by the Board of Directors, would be paid for the financial year 2012 on the basis of the balance sheet adopted. The capital repayment, totalling EUR 23.2 million, payment date was resolved to be on 22 March 2013.
The Annual General Meeting confirmed the number of the members of the Board of Directors five. The following Board members were re-elected to the Board until the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Hille Korhonen, Sakari Lassila and Miikka Maijala.
KPMG Oy Ab, Authorised Public Accountants, was elected auditor. KPMG Oy Ab has announced that it will name Lasse Holopainen, Authorised Public Accountant, as its principal auditor.
The resolutions of the Annual General Meeting were announced in more detail in a stock exchange release on 12 March 2013.
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.
In a release published on 25 March 2013, the company announced the comparable figures for 2012 based on the new business structure.
In a release published on 9 April 2013, the company announced that as part of EcoStream Oy's capital arrangements, Lassila & Tikanoja plc subscribed for EcoStream Oy shares for a total of EUR 2.0 million on 8 April 2013. The subscription price was EUR 3.00 per share. This subscription was financed through a conversion of Lassila & Tikanoja's remaining sale price receivable from the L&T Recoil Oy divestment, EUR 2.0 million, into EcoStream Oy shares. Consequently, the arrangement had no direct impact on cash flow. Following this arrangement and EcoStream Oy's other capital arrangements, Lassila & Tikanoja's ownership in EcoStream Oy fell to approximately 16.4 per cent.
In connection with the arrangement, Lassila & Tikanoja's Board of Directors decided on a write-down of all shares held by Lassila & Tikanoja plc to EUR 3.00 per share. As a result of this write-down, the company will record an impairment of EUR 5.1 million on EcoStream Oy's shares for the second quarter.
After the write-down, the balance sheet value of the EcoStream shares held by L&T will be approximately EUR 3.6 million.
The impairment will be treated as a non-recurring cost item, with no impact on cash flow.
Economic uncertainty may cause major changes in the Environmental Services division's secondary raw material markets and in the Industrial Services division's demand.
Uncertainties associated with government subsidies for renewable fuels and with their continuity could affect demand for the Renewable Energy Sources division's services.
More detailed information on L&T's risks and risk management is available in the Annual Report for 2012, in the report of the Board of Directors, and in the consolidated financial statements.
Full-year net sales in 2013 are expected to remain at the 2012 level. Operating profit, excluding nonrecurring items, is expected to remain at the 2012 level or improve slightly.
| EUR 1 000 | 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 |
|---|---|---|---|---|
| Net sales | 167 721 | 171 286 | -2,1 | 673 985 |
| Cost of sales | -154 367 | -159 711 | -3,3 | -602 581 |
| Gross profit | 13 354 | 11 575 | 15,4 | 71 404 |
| Other operating income | 378 | 548 | -31,0 | 7 708 |
| Selling and marketing costs | -3 640 | -4 091 | -11,0 | -16 745 |
| Administrative expenses | -3 246 | -3 008 | 7,9 | -12 090 |
| Other operating expenses | -548 | -91 | 502,2 | -1 584 |
| Impairment, non-current assets | -302 | |||
| Impairment, goodwill and other intangible assets | ||||
| Operating profit | 6 298 | 4 933 | 27,7 | 48 391 |
| Finance income | 179 | 355 | -49,6 | 860 |
| Finance costs | -587 | -1 315 | -55,4 | -6 256 |
| Profit before tax | 5 890 | 3 973 | 48,3 | 42 995 |
| Income tax expense | -1 443 | -1 209 | 19,4 | -8 543 |
| Profit for the period | 4 447 | 2 764 | 60,9 | 34 452 |
| Attributable to: | ||||
| Equity holders of the company | 4 451 | 2 769 | 34 459 | |
| Non-controlling interest | -4 | -5 | -7 | |
| Earnings per share for profit attributable to the equity holders of the company: |
||||
| Basic earnings per share, EUR | 0.12 | 0.07 | 0.89 | |
| Diluted earnings per share, EUR | 0.12 | 0.07 | 0.89 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |
|---|---|
| ------------------------------------------------ | -- |
| EUR 1 000 | 1-3/2013 | 1-3/2012 | 1-12/2012 |
|---|---|---|---|
| Profit for the period | 4 447 | 2 764 | 34 452 |
| Other comprehensive income, after tax | |||
| Items arising from re-measurement of defined benefit plans | -46 | -189 | |
| Total | -46 | -189 | |
| Hedging reserve, change in fair value | 956 | 309 | 1 098 |
| Revaluation reserve | |||
| Gains in the period | -1 | 3 | 2 |
| Current available-for-sale financial assets | -1 | 3 | 2 |
| Currency translation differences | 250 | 681 | 627 |
| Currency translation differences, non-controlling interest | 4 | 18 | 10 |
| Other comprehensive income, after tax | 1 209 | 1 011 | 1 737 |
| Total comprehensive income, after tax | 5 656 | 3 729 | 36 000 |
| Attributable to: | |||
| Equity holders of the company | 5 657 | 3 716 | 35 997 |
| Non-controlling interest | -1 | 13 | 3 |
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 120 444 | 119 847 | 120 189 |
| Customer contracts arising from acquisitions | 7 110 | 9 867 | 7 880 |
| Agreements on prohibition of competition | 1 450 | 2 918 | 1 810 |
| Other intangible assets arising from business acquisitions | 52 | 73 | 57 |
| Other intangible assets | 8 332 | 10 925 | 8 494 |
| 137 388 | 143 630 | 138 430 | |
| Property, plant and equipment | |||
| Land | 3 848 | 4 283 | 3 844 |
| Buildings and constructions | 51 499 | 78 381 | 52 393 |
| Machinery and equipment | 117 753 | 121 836 | 121 179 |
| Other | 87 | 85 | 86 |
| Prepayments and construction in progress | 3 467 | 4 720 | 2 657 |
| 176 654 | 209 305 | 180 159 | |
| Other non-current assets | |||
| Available-for-sale investments | 7 280 | 590 | 7 284 |
| Finance lease receivables | 3 630 | 3 808 | 3 608 |
| Deferred tax assets | 3 511 | 6 273 | 3 845 |
| Other receivables | 5 991 | 3 306 | 2 755 |
| 20 412 | 13 977 | 17 492 | |
| Total non-current assets | 334 454 | 366 912 | 336 081 |
| Current assets | |||
| Inventories | 23 864 | 26 916 | 24 884 |
| Trade and other receivables | 98 722 | 105 079 | 103 925 |
| Derivative receivables | 2 151 | 405 | 1 290 |
| Prepayments | 3 506 | 5 690 | 491 |
| Current available-for-sale financial assets | 2 001 | 1 999 | 2 499 |
| Cash and cash equivalents | 11 775 | 5 800 | 12 083 |
| Total current assets | 142 019 | 145 889 | 145 172 |
| TOTAL ASSETS | 476 473 | 512 801 | 481 253 |
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity attributable to equity holders of the company | |||
| Share capital | 19 399 | 19 399 | 19 399 |
| Share premium reserve | |||
| Other reserves | 463 | -1 476 | -743 |
| Unrestricted equity reserve | 6 109 | 29 403 | 29 381 |
| Retained earnings | 184 265 | 150 133 | 150 233 |
| Profit for the period | 4 451 | 2 769 | 34 459 |
| 214 687 | 200 228 | 232 729 | |
| Non-controlling interest | 273 | 284 | 274 |
| Total equity | 214 960 | 200 512 | 233 003 |
| Liabilities | |||
| Non-current liabilities | |||
| Deferred tax liabilities | 31 118 | 29 126 | 31 313 |
| Retirement benefit obligations | 888 | 670 | 672 |
| Provisions | 4 252 | 2 569 | 4 304 |
| Borrowings | 52 203 | 88 236 | 57 961 |
| Other liabilities | 904 | 1 123 | 942 |
| 89 365 | 121 724 | 95 192 | |
| Current liabilities | |||
| Borrowings | 45 162 | 70 801 | 38 915 |
| Trade and other payables | 125 563 | 118 140 | 112 880 |
| Derivative liabilities | 833 | 1 490 | 1 129 |
| Tax liabilities | 0 | 14 | 14 |
| Provisions | 590 | 120 | 120 |
| 172 148 | 190 565 | 153 058 | |
| Total liabilities | 261 513 | 312 289 | 248 250 |
| TOTAL EQUITY AND LIABILITIES | 476 473 | 512 801 | 481 253 |
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit for the period | 4 447 | 2 764 | 34 452 |
| Adjustments | |||
| Income tax expense | 1 443 | 1 209 | 8 543 |
| Depreciation, amortisation and impairment | 10 578 | 10 826 | 43 642 |
| Finance income and costs | 408 | 959 | 5 395 |
| Gain on sale of shares | -4 181 | ||
| Other | -109 | -459 | 1 603 |
| Net cash generated from operating activities before change in working | |||
| capital | 16 767 | 15 299 | 89 454 |
| Change in working capital | |||
| Change in trade and other receivables | -296 | -16 993 | -10 574 |
| Change in inventories | 1 020 | 1 033 | -121 |
| Change in trade and other payables | 12 210 | 13 476 | 17 096 |
| Change in working capital | 12 934 | -2 484 | 6 401 |
| Interest paid | -616 | -1 311 | -5 070 |
| Interest received | 129 | 257 | 830 |
| Income tax paid | -2 198 | -2 854 | -11 127 |
| Net cash from operating activities | 27 016 | 8 907 | 80 488 |
| Cash flows from investing activities | |||
| Acquisition of subsidiaries and businesses, net of cash acquired | -746 | -2 498 | |
| Proceeds from sale of subsidiaries and businesses, net of sold cash | 7 820 | ||
| Purchases of property, plant and equipment and intangible assets | -4 914 | -10 940 | -40 659 |
| Proceeds from sale of property, plant and equipment and intangible | |||
| assets | 67 | 223 | 2 826 |
| Purchases of available-for-sale investments | |||
| Change in other non-current receivables | 30 | 10 | 560 |
| Proceeds from sale of available-for-sale investments | |||
| Dividends received | 1 | ||
| Net cash used in investing activities | -4 817 | -11 453 | -31 950 |
| Cash flows from financing activities | |||
| Change in short-term borrowings | 3 999 | 28 483 | -5 781 |
| Proceeds from long-term borrowings | 10 200 | ||
| Repayments of long-term borrowings | -3 849 | -5 007 | -25 254 |
| Dividends paid and other asset distribution | -23 197 | -21 254 | -21 254 |
| Repurchase of own shares | |||
| Net cash generated from financing activities | -23 047 | 2 222 | -42 089 |
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Net change in liquid assets | -848 | -324 | 6 449 |
| Liquid assets at beginning of period | 14 582 | 8 069 | 8 069 |
| Effect of changes in foreign exchange rates | 42 | 54 | 64 |
| Change in fair value of current available-for-sale investments | |||
| Liquid assets at end of period | 13 776 | 7 799 | 14 582 |
| Liquid assets | |||
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
| Cash and cash equivalents | 11 775 | 5 800 | 12 083 |
| Available-for-sale financial assets | 2 001 | 1 999 | 2 499 |
| Total | 13 776 | 7 799 | 14 582 |
| Equity | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Cur | attribut | |||||||||
| rency | Invested | able | ||||||||
| transla | unrestric | to equity | ||||||||
| Share | Share premium |
tion differ |
Reva luation |
Hedging | ted equity |
Re tained |
holders of the |
Non controllin |
Total | |
| EUR 1 000 | capital | reserve | ences | reserve | reserve | reserve | earnings | company | g interest | equity |
| Equity at | ||||||||||
| 1.1.2013 | 19 399 | 0 | -785 | 2 | 41 | 29 381 | 184 692 | 232 729 | 274 | 233 003 |
| Amendment | ||||||||||
| in IAS19 | -189 | -189 | -189 | |||||||
| Equity at | ||||||||||
| 1.1.2013 | 19 399 | 0 | -785 | 2 | 41 | 29 381 | 184 503 | 232 540 | 274 | 232 814 |
| Expense | ||||||||||
| recognition of share-based |
||||||||||
| benefits | 80 | 80 | 80 | |||||||
| Capital | ||||||||||
| repayment | -23 272 | 299 | -22 973 | -22 973 | ||||||
| Total | ||||||||||
| comprehensiv | ||||||||||
| e income | 250 | -1 | 956 | 4 451 | 5 657 | -1 | 5 656 | |||
| Other | ||||||||||
| differences | -617 | -617 | -617 | |||||||
| Equity at | ||||||||||
| 31.3.2013 | 19 399 | 0 | -535 | 1 | 997 | 6 109 | 188 716 | 214 687 | 273 | 214 960 |
| Equity at | ||||||||||
| 1.1.2012 | 19 399 | 0 | -1 412 | 0 | -1 057 | 50 658 | 150 085 | 217 673 | 271 | 217 944 |
| Amendment in IAS19 |
-47 | 0 | 0 | |||||||
| Expense | ||||||||||
| recognition of | ||||||||||
| share-based | ||||||||||
| benefits | 48 | 48 | 48 | |||||||
| Repurchase | ||||||||||
| of own shares | ||||||||||
| Capital | ||||||||||
| repayment | -21 255 | -21 255 | -21 255 | |||||||
| Total | ||||||||||
| comprehensiv | ||||||||||
| e income Equity at |
681 | 3 | 309 | 2 769 | 3 762 | 13 | 3 775 | |||
| 31.3.2012 | 19 399 | 0 | -731 | 3 | -748 | 29 403 | 152 855 | 200 228 | 284 | 200 512 |
| 1-3/2013 | 1-3/2012 | 1-12/2012 | |
|---|---|---|---|
| Earnings per share, EUR | 0.12 | 0.07 | 0.89 |
| Earnings per share, diluted, EUR | 0.12 | 0.07 | 0.89 |
| Cash flows from operating activities per share, EUR | 0.70 | 0.23 | 2.08 |
| EVA, EUR million | 0.9 | -1.5 | 24.1 |
| Capital expenditure, EUR 1000 | 5 919 | 11 474 | 49 385 |
| Depreciation, amortisation and impairment, EUR 1000 | 10 578 | 10 826 | 43 641 |
| Equity per share, EUR | 5.55 | 5.18 | 6.01 |
| Return on equity, ROE, % | 7.9 | 5.3 | 15.3 |
| Return on invested capital, ROI, % | 8.0 | 5.9 | 14.4 |
| Equity ratio, % | 46.3 | 39.7 | 49.4 |
| Gearing, % | 38.9 | 75.4 | 35.3 |
| Net interest-bearing liabilities, EUR 1000 | 83 589 | 151 239 | 82 294 |
| Average number of employees in full-time equivalents Total number of full-time and part-time employees at end of |
7 938 | 8 119 | 8 399 |
| period | 8 988 | 9 229 | 8 962 |
| Number of outstanding shares adjusted for issues, 1000 shares | |||
| average during the period | 38 696 | 38 686 | 38 688 |
| at end of period | 38 707 | 38 686 | 38 692 |
| average during the period, diluted | 38 702 | 38 711 | 38 701 |
This financial statements release is in compliance with IAS 34 standard. The same accounting policies as in the annual financial statements for the year 2012 have been applied. The following new, revised or amended IFRS standards and IFRIC interpretations that have become effective in 2013 have not had an impact on the financial statements:
Key changes: The amendment eliminates the use of the 'corridor'approach. The definition of estimated return on funded defined benefit plan assets will change. Financial cost is determined on the net assets (included in the obligation and in the plan). Impact on statement of financial position on 31 December 2012 and statement of comprehensive income for the period 1 January 2012–31 December 2012 EUR 189 thousand.
The new standard sets out the requirement to determine fair value and to disclose related information in the financial statements; the new standard also includes a definition of fair value. The use of fair value is not extended, but the standard offers guidelines for value definition when another standard requires or permits fair value measurements. IFRS 13 extends the disclosure requirement for assets measured at fair value not included in financial assets. The EU has not yet approved the new standard for application. The new standard is not expected to have a material impact on consolidated financial statements.
carrying amounts on the balance sheet date for assets and liabilities and the amounts of revenues and expenses. In addition, the management makes judgements when making decisions on application of accounting policies. Actual results may differ from the estimates and assumptions.
The interim report has not been audited.
| 1-3/2013 | 1-3/2012 | ||||||
|---|---|---|---|---|---|---|---|
| EUR 1 000 | External | Inter division |
Total | External | Inter division |
Total | Total net sales, change % |
| Environmental | |||||||
| Services | 59 107 | 1 094 | 60 201 | 63 772 | 1 695 | 65 467 | -8.0 |
| Industrial Services | 13 080 | 650 | 13 730 | 12 189 | 734 | 12 923 | 6.2 |
| Facility Services Renewable |
74 791 | 1 005 | 75 796 | 78 786 | 834 | 79 620 | -4.8 |
| Energy Sources | 20 743 | 1 027 | 21 770 | 16 539 | 1 045 | 17 584 | 23.8 |
| Eliminations | -3 776 | -3 776 | -4 308 | -4 308 | |||
| L&T total | 167 721 | 0 | 167 721 | 171 286 | 0 | 171 286 | -2.1 |
| 1-12/2012 | |||
|---|---|---|---|
| Inter | |||
| EUR 1 000 | External | division | Total |
| Environmental | |||
| Services | 259 791 | 5 870 | 265 661 |
| Industrial Services | 66 863 | 3 133 | 69 996 |
| Facility Services | 295 451 | 4 042 | 299 493 |
| Renewable | |||
| Energy Sources | 51 880 | 4 067 | 55 947 |
| Eliminations | -17 112 | -17 112 | |
| L&T total | 673 985 | 0 | 673 985 |
| EUR 1 000 | 1-3/2013 | % | 1-3/2012 | % | 1-12/2012 | % |
|---|---|---|---|---|---|---|
| Environmental Services | 6 224 | 10.3 | 4 272 | 6.5 | 34 251 | 12.9 |
| Industrial Services | -519 | -3.8 | -1 257 | -9.7 | 3 892 | 5.6 |
| Facility Services | 429 | 0.6 | 1 596 | 2.0 | 12 980 | 4.3 |
| Renewable Energy | ||||||
| Sources | 967 | 4.4 | 787 | 4.5 | -61 | -0.1 |
| Group admin. and other | -803 | -465 | -2 671 | |||
| L&T total | 6 298 | 3.8 | 4 933 | 2.9 | 48 391 | 7.2 |
| Finance costs, net | -408 | -960 | -5 396 | |||
| Profit before tax | 5 890 | 3 973 | 42 995 |
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Assets | |||
| Environmental Services | 219 678 | 274 680 | 228 457 |
| Industrial Services | 70 262 | 73 902 | 81 573 |
| Facility Services | 115 051 | 112 002 | 105 718 |
| Renewable Energy Sources | 29 721 | 29 966 | 30 179 |
| Group admin. and other | 15 970 | 2 057 | 9 853 |
| Unallocated assets | 25 791 | 20 194 | 25 473 |
| L&T total | 476 473 | 512 801 | 481 253 |
| Liabilities | |||
| Environmental Services | 45 162 | 41 674 | 42 381 |
| Industrial Services | 19 524 | 17 449 | 18 687 |
| Facility Services | 55 180 | 52 283 | 50 073 |
| Renewable Energy Sources | 10 826 | 8 592 | 6 094 |
| Group admin. and other | 1 049 | 1 120 | 1 378 |
| Unallocated assets | 129 772 | 191 171 | 129 637 |
| L&T total | 261 513 | 312 289 | 248 250 |
| EUR 1 000 | 1-3/2013 | 1-3/2012 | 1-12/2012 |
| Capital expenditure | |||
| Environmental Services | 2 472 | 4 281 | 16 149 |
| Industrial Services | 514 | 1 901 | 11 272 |
| Facility Services | 2 695 | 5 192 | 14 727 |
| Renewable Energy Sources | 45 | 97 | 486 |
| Group admin. and other | 193 | 3 | 6 751 |
| L&T total | 5 919 | 11 474 | 49 385 |
| Depreciation and amortisation | |||
| Environmental Services | 5 595 | 6 362 | 24 690 |
| Industrial Services | 1 663 | 1 644 | 7 084 |
| Facility Services | 3 239 | 2 748 | 11 276 |
| Renewable Energy Sources | 77 | 72 | 281 |
| Group admin. and other | 4 | 0 | 9 |
| L&T total | 10 578 | 10 826 | 43 340 |
| Impairment | |||
| Environmental Services | 302 | ||
| L&T total | 0 | 0 | 302 |
| EUR 1 000 | 1-3/2013 | 10-12/2012 | 7-9/2012 | 4-6/2012 | 1-3/2012 |
|---|---|---|---|---|---|
| Net sales | |||||
| Environmental Services | 60 201 | 64 670 | 66 388 | 69 136 | 65 467 |
| Industrial Services | 13 730 | 18 770 | 18 145 | 20 158 | 12 923 |
| Facility Services | 75 796 | 74 789 | 72 708 | 72 376 | 79 620 |
| Renewable Energy Sources | 21 770 | 18 287 | 7 977 | 12 099 | 17 584 |
| Group admin. and other | |||||
| Inter-division net sales | -3 776 | -4 725 | -4 002 | -4 077 | -4 308 |
| L&T total | 167 721 | 171 791 | 161 216 | 169 692 | 171 286 |
| Operating profit | |||||
| Environmental Services | 6 224 | 6 592 | 11 019 | 12 368 | 4 272 |
| Industrial Services | -519 | 1 161 | 1 789 | 2 199 | -1 257 |
| Facility Services | 429 | 2 516 | 7 843 | 1 025 | 1 596 |
| Renewable Energy Sources | 967 | 269 | -384 | -733 | 787 |
| Group admin. and other | -803 | -853 | -638 | -715 | -465 |
| L&T total | 6 298 | 9 685 | 19 629 | 14 144 | 4 933 |
| Operating margin | |||||
| Environmental Services | 10.3 | 10.2 | 16.6 | 17.9 | 6.5 |
| Industrial Services | -3.8 | 6.2 | 9.9 | 10.9 | -9.7 |
| Facility Services | 0.6 | 3.4 | 10.8 | 1.4 | 2.0 |
| Renewable Energy Sources | 4.4 | 1.5 | -4.8 | -6.1 | 4.5 |
| L&T total | 3.8 | 5.6 | 12.2 | 8.3 | 2.9 |
| Finance costs, net | -408 | -512 | -568 | -3 356 | -960 |
| Profit before tax | 5 890 | 9 173 | 19 061 | 10 788 | 3 973 |
In January-March 2013 Lassila & Tikanoja made no business acquisitions.
The accounting policy concerning business combinations is presented in Annual Report under Note 2 of the consolidated financial statements and under Summary on significant accounting policies.
| EUR 1 000 | 1-3/2013 | 1-3/2012 | 1-12/2012 |
|---|---|---|---|
| Carrying amount at beginning of period | 138 430 | 144 489 | 144 489 |
| Business acquisitions | 566 | 1 110 | |
| Other capital expenditure | 637 | 621 | 2 322 |
| Disposals | -10 | -1 957 | |
| Amortisation and impairment | -1 842 | -2 121 | -8 023 |
| Transfers between items | |||
| Exchange differences | 163 | 85 | 489 |
| Carrying amount at end of period | 137 388 | 143 630 | 138 430 |
| EUR 1 000 | 1-3/2013 | 1-3/2012 | 1-12/2012 |
|---|---|---|---|
| Carrying amount at beginning of period | 180 159 | 207 522 | 207 522 |
| Business acquisitions | 515 | 2 438 | |
| Other capital expenditure | 5 281 | 9 772 | 36 810 |
| Disposals | -135 | -199 | -31 258 |
| Depreciation and impairment | -8 736 | -8 705 | -35 619 |
| Transfers between items | |||
| Exchange differences | 85 | 400 | 266 |
| Carrying amount at end of period | 176 654 | 209 305 | 180 159 |
| EUR 1 000 | 1-3/2013 | 1-3/2012 | 1-12/2012 |
|---|---|---|---|
| Intangible assets | 109 | ||
| Property, plant and equipment | 4 895 | 4 669 | 1 953 |
| Total | 4 895 | 4 669 | 2 062 |
| The Group's share of capital commitments | 50 |
(Joint ventures)
| EUR 1 000 | 1-3/2013 | 1-3/2012 | 1-12/2012 |
|---|---|---|---|
| Sales | 488 | 939 | |
| Other operating income | 12 | 24 | |
| Interest income | 203 | 391 | |
| Non-current receivables | |||
| Capital loan receivable | 25 146 | 0 | |
| Current receivables | |||
| Trade receivables | 2 466 | 0 | |
| Loan receivables | 1 801 | 0 |
| Financial | ||||||||
|---|---|---|---|---|---|---|---|---|
| assets and | Financial | Carrying | ||||||
| liabilities at | liabilities | amounts | ||||||
| fair value | Available | measured | Derivatives | by | Fair value | |||
| through | Loans and | for-sale | at | under | balance | Fair values | hierarchy | |
| profit or | other | financial | amortised | hedge | sheet | by balance | level under | |
| EUR 1 000 Non-current financial |
loss | receivables | assets | cost | accounting | item | sheet item | IFRS 7 |
| assets | ||||||||
| Available-for-sale | ||||||||
| investments | 7 280 | 7 280 | 7 280 | 3 | ||||
| Finance lease | ||||||||
| receivables | 3 630 | 3 630 | 3 931 | |||||
| Other receivables | 5 990 | 5 990 | 5 990 | |||||
| Current financial | ||||||||
| assets | ||||||||
| Trade and other | ||||||||
| receivables | 88 865 | 88 865 | 88 865 | |||||
| Derivative receivables | 15 | 2136 | 2 151 | 2 151 | 2 | |||
| Available-for-sale | ||||||||
| financial assets | 2 001 | 2 001 | 2 001 | 2 | ||||
| Cash and cash equivalents |
11 775 | 11 775 | 11 775 | |||||
| Total financial assets | 15 | 110 260 | 9 281 | 2 136 | 121 692 | 121 993 | ||
| Non-current financial liabilities |
||||||||
| Borrowings | 52 204 | 52 204 | 52 560 | |||||
| Other liabilities | 605 | 605 | 605 | |||||
| Current financial liabilities |
||||||||
| Borrowings | 45 162 | 45 162 | ||||||
| Trade and other | ||||||||
| payables | 57 938 | 57 938 | ||||||
| Derivative liabilities | 833 | 833 | 833 | 2 | ||||
| Total financial liabilities | 155 909 | 833 | 156 742 | 53 998 |
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Mortgages on rights of tenancy | 186 | 42 186 | 186 |
| Company mortgages | 583 | 21 460 | 583 |
| Other securities | 180 | 191 | 178 |
| Bank guarantees required for environmental permits | 8 704 | 5 140 | 6 483 |
Other securities are security deposits.
Lassila & Tikanoja plc has given a guarantee for a share of 50 percent of L&T Recoil Oy's financial liabilities.
The guarantee is valid no later than the maturity date of the liabilities on 31 August 2014. The financial liabilities of L&T Recoil totalled EUR 32.8 million on 31 March 2013.
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Maturity not later than one year | 5 212 | 7 231 | 5 556 |
| Maturity later than one year and not later than five years | 7 460 | 13 968 | 8 377 |
| Maturity later than five years | 2 226 | 4 103 | 2 274 |
| Total | 14 899 | 25 302 | 16 206 |
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Nominal values of interest rate and currency swaps* | |||
| Maturity not later than one year | 18 514 | 13 429 | 14 229 |
| Maturity later than one year and not later than five years | 23 140 | 36 272 | 28 940 |
| Maturity later than five years | 2 727 | 2 727 | |
| Total | 44 381 | 49 701 | 45 896 |
| Fair value | -833 | -1 084 | -1 129 |
| Nominal value of interest rate swaps** | |||
| Maturity not later than one year | 0 | 4 000 | 0 |
| Maturity later than one year and not later than five years | 0 | 19 455 | 0 |
| Maturity later than five years | 0 | 4 545 | 0 |
| Total | 0 | 28 000 | 0 |
| Fair value | 0 | -174 | 0 |
* The interest rate swaps are used to hedge cash flow related to a floating rate loan, and hedge accounting under IAS 39 has been applied to it. The hedges have been effective, and the changes in the fair values are shown in the consolidated statement of comprehensive income for the period. The fair values of the swap contracts are based on the market data at the balance sheet date.
** Hedge accounting under IAS 39 has not been applied to these interest rate swaps. Changes in fair values have been recognised in finance income and costs.
| metric tonnes | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Nominal values of diesel swaps | |||
| Maturity not later than one year | 4 524 | 2 544 | 5 136 |
| Maturity later than one year and not later than five years | 0 | 636 | 660 |
| Total | 4 524 | 3 180 | 5 796 |
| Fair value, EUR 1000 | 193 | 405 | 136 |
Commodity derivative contracts were concluded, for hedging of future diesel oil purchases. IAS 39 – compliant hedge accounting will be applied to these contracts, and the effective change in fair value will be recognised in the hedging reserve within equity. The fair values of commodity derivatives are based on market prices at the balance sheet date.
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Volume of forward contracts | |||
| Maturity not later than one year | 512 | 253 | 775 |
| Fair value | 15 | -6 | 4 |
Hedge accounting under IAS 39 has not been applied to forward contracts. Changes in fair values have been recognised in finance income and costs.
| EUR 1 000 | 3/2013 | 3/2012 | 12/2012 |
|---|---|---|---|
| Maturity of cross currency interest rate swaps under | |||
| hedge accounting | |||
| Maturity not later than one year | 12 800 | 10 400 | 12 800 |
| Maturity later than one year and not later than five years | 15 867 | 28 667 | 16 667 |
| Total | 28 667 | 39 067 | 29 467 |
| Fair value, EUR 1 000 | 1 943 | -11 | 1 150 |
The contracts are used to hedge cash flow related to foreign currency floating rate loans. The changes in the fair values are shown in the consolidated statement of comprehensive income for the period. On the balance sheet date, the value of foreign currency loans was EUR 1.9 million negative.
Earnings per share:
profit attributable to equity holders of the parent company / adjusted average basic number of shares
Earnings per share, diluted: profit attributable to equity holders of the parent company / adjusted average diluted number of shares
Cash flows from operating activities/share: cash flow from operating activities as in the statement of cash flows / adjusted average number of shares
EVA: operating profit - cost calculated on invested capital (average of four quarters) WACC 2012: 7.1% WACC 2013: 6.5%
Equity per share: equity attributable to equity holders of the parent company / adjusted basic number of shares at end of period
Return on equity, % (ROE): (profit for the period / equity (average)) x 100
Return on investment, % (ROI): (profit before tax + finance costs) / (total equity and liabilities - non-interest-bearing liabilities (average)) x 100
Equity ratio, %: equity / (total equity and liabilities - advances received) x 100
Gearing, %: net interest-bearing liabilities / equity x 100
Net interest-bearing liabilities: interest-bearing liabilities - liquid assets
Operating profit excluding non-recurring items: operating profit +/- non-recurring items
Helsinki, 23 April 2013
LASSILA & TIKANOJA PLC Board of Directors
Pekka Ojanpää President and CEO
For additional information please contact: Pekka Ojanpää, President and CEO, tel. +358 10 636 2810 or Timo Leinonen, CFO, tel. +358 400 793 073.
Lassila & Tikanoja is a service company that is transforming the consumer society into an efficient recycling society. In co-operation with our customers we are reducing waste volumes, extending the useful lives of properties, recovering materials and decreasing the use of raw materials and energy. We help our customers to focus on their core business and to save the environment. Together, we create well-being and jobs. With operations in Finland, Sweden, Latvia and Russia, L&T employs 9,000 persons. Net sales in 2012 amounted to EUR 674.0 million. L&T is listed on NASDAQ OMX Helsinki.
Distribution: NASDAQ OMX Helsinki Major media www.lassila-tikanoja.com
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