LASSILA & TIKANOJA OYJ Interim Report Q3 2017
Interim Report 1 January - 30 September 2017
- Net sales for the third quarter were EUR 175.9 million (EUR 166.0 million), operating profit was EUR 17.6 million (EUR 19.1 million) and earnings per share EUR 0.35 (EUR 0.39)- Net sales for January-September increased by 2.3% to EUR 505.1 million (EUR 493.5 million), operating profit was EUR 32.8 million (EUR 39.9 million) and earnings per share EUR 0.65 (EUR 0.91)- Full-year net sales in 2017 are expected to remain at the 2016 level and operating profit is expected to be below the 2016 level
CEO PEKKA OJANPÄÄ:
'Lassila & Tikanoja's net sales for January-September increased year-on-year. The result was weaker than in the comparison period. The net sales of the Industrial Services division grew and profitability improved year-on-year thanks to strong demand. In Environmental Services, net sales were on a par with the comparison period, but profitability declined due to factors including higher fuel costs. The market position of Environmental Services has improved, particularly in the retail and industrial segments. The result of the Facility Services division continues to be weighed down by costs related to the deployment of the new ERP system. Measures to improve the profitability of the renovation business are underway and already having a positive impact. Also the result of the cleaning business has developed favourably. In accordance with our strategy, we expanded our operations in the growing Swedish market and completed the acquisition of the technical systems maintenance service provider Veolia FM AB (L&T FM AB) at the end of August. The integration process is underway and progressing as planned.'
GROUP NET SALES AND FINANCIAL PERFORMANCE
Third quarter
Lassila & Tikanoja's net sales for the third quarter increased by 6.0% to EUR 175.9 million (EUR 166.0 million). Operating profit totalled EUR 17.6 million (EUR 19.1 million), representing 10.0% (11.5%) of net sales. Earnings per share were EUR 0.35 (EUR 0.39).
Net sales increased primarily due to the acquisition of L&T FM AB. The Industrial Services division and Facility Services division also increased their net sales. In Environmental Services, net sales were on a par with the comparison period, while the net sales of Renewable Energy Sources declined year-on-year.
Operating profit increased in Industrial Services, but the profitability of the other divisions was lower than in the previous year.
The L&T FM AB acquisition increased net sales in the third quarter by approximately EUR 8 million and had a negative effect on operating profit due to the acquisition and integration costs.
January-September
Net sales for January-September increased by 2.3% to EUR 505.1 million (EUR 493.5 million). Operating profit totalled EUR 32.8 million (EUR 39.9 million), representing 6.5% (8.1%) of net sales. Earnings per share were EUR 0.65 (EUR 0.91).
Net sales for the January-September period increased primarily due to the acquisition of L&T FM AB. Net sales also increased in Industrial Services, while the net sales of the Environmental Services division remained on a par with the previous year. The net sales of Facility Services and Renewable Energy Sources declined year-on-year.
Operating profit improved in Industrial Services. The profitability of Environmental Services, Renewable Energy Sources and Facility Services declined year-on-year. In addition to the lower profitability of business operations compared to the previous year, the operating profit was weighed down by expenses of EUR 1.1 million recognised in the second and third quarters in relation to the L&T FM AB acquisition announced in June and the integration of the acquired entity. The Group also increased its cost provisions related to the closure of landfills by EUR 0.6 million in the second quarter.
The L&T FM AB acquisition increased net sales by approximately EUR 8 million and had a negative effect on operating profit due to the acquisition and integration costs.
Financial summary
7-9/2017 | 7-9/2016 | Change | 1-9/2017 | 1-9/2016 | Change | 1-12/2016 | |
Net sales, EUR million | 175.9 | 166.0 | 6.0% | 505.1 | 493.5 | 2.3% | 661.8 |
Operating profit, EUR million | 17.6 | 19.1 | -7.9% | 32.8 | 39.9 | -18.0% | 50.5 |
Operating margin, % | 10.0 | 11.5 | 6.5 | 8.1 | 7.6 | ||
Profit before tax, EUR million | 18.0 | 18.7 | -3.3% | 32.6 | 39.4 | -17.3% | 50.1 |
Earnings per share, EUR | 0.35 | 0.39 | -9.4% | 0.65 | 0.91 | -28.2% | 1.13 |
Cash flow from operating activities/share, EUR | 0.35 | 0.76 | -53.2% | 0.93 | 0.88 | 6.7% | 1.99 |
EVA, EUR million | 11.7 | 14.1 | -17.1% | 16.7 | 24.9 | -32.9% | 30.7 |
NET SALES AND OPERATING PROFIT BY DIVISION
Environmental Services
Third quarterThe division's net sales for the third quarter were EUR 68.1 million (EUR 68.2 million). Operating profit totalled EUR 9.7 million (EUR 10.2 million).
The Environmental Services division's net sales for the third quarter were on a par with the comparison period. Operating profit decreased mainly due to fuel costs being higher than in the previous year and the impact of the municipalisation of waste management on the availability and prices of secondary raw materials. The market position of Environmental Services has improved particularly in the retail and industrial segments.
January-SeptemberThe division's net sales for January-September amounted to EUR 198.3 million (EUR 198.2 million). Operating profit was EUR 23.3 million (EUR 24.8 million).
The net sales of the Environmental Services division were on a par with the comparison period. The division's operating profit for the first three quarters of the year was reduced by fuel costs being higher than in the previous year, the impact of the municipalisation of waste management on the availability of secondary raw materials and an increase of EUR 0.6 million in cost provisions related to the closure of landfills, recognised in the second quarter.Industrial Services
Third quarter Net sales for the third quarter were EUR 25.3 million (EUR 23.9 million). Operating profit was EUR 3.6 million (EUR 3.4 million).
Net sales and operating profit increased in hazardous waste management, sewer maintenance and process cleaning. In the environmental construction business, net sales and operating profit declined year-on-year.
January-SeptemberThe division's net sales for January-September totalled EUR 66.8 million (EUR 60.7 million). Operating profit was EUR 6.0 million (EUR 5.2 million).
Net sales increased in all of the division's service lines except environmental construction, which saw its net sales remain on a par with the previous year.
Operating profit increased particularly in hazardous waste management and process cleaning. The operating profit of environmental construction was lower than in the comparison period.
Facility ServicesThird quarterThe Facility Services division's net sales for the third quarter increased by 11.8% to EUR 79.9 million (EUR 71.5 million). Operating profit was EUR 5.1 million (EUR 6.1 million).
The division's net sales increased primarily due to the acquisition of L&T FM AB. Net sales showed year-on-year growth in the cleaning business but declined in the division's other service lines.
The operating profit of the cleaning business grew year-on-year due to previously implemented efficiency improvement measures and strong demand. The operating profit of the division's other service lines was lower than in the comparison period. The impacts of the efficiency improvement measures in the renovation business began to show in the third quarter. The result of the property maintenance business was weighed down by costs related to the deployment of a new ERP system in the Facility Services division.
The acquisition of L&T FM AB was completed at the end of August. The integration process is moving ahead as planned and L&T FM is included in the Group's reporting starting from the beginning of September.
January-SeptemberThe Facility Services division's net sales for January-September amounted to EUR 222.8 million (EUR 216.5 million). Operating profit was EUR 6.0 million (EUR 10.9 million).
The division's net sales increased primarily due to the acquisition of L&T FM AB. Net sales increased in the cleaning business. Operating profit also improved further in the cleaning business but declined in the division's other service lines. In the renovation business, the decline in profitability was due to the weak result in the first quarter and the costs arising from the efficiency improvement measures implemented in the second quarter. In the maintenance of technical systems business, the result showed a decline due to lower demand than in the previous year. In the property maintenance business, the weaker profitability was due to the impact on profit and loss from the deployment of the new ERP system.
Renewable Energy Sources
Third quarterThe net sales of Renewable Energy Sources (L&T Biowatti) amounted to EUR 4.8 million (EUR 5.3 million) in the third quarter. Operating profit was EUR 0.0 million (EUR 0.1 million).
The division's net sales declined year-on-year due to the weak demand for recovered fuels. The low volumes were also reflected in the operating profit.
January-SeptemberNet sales for January-September amounted to EUR 24.2 million (EUR 25.2 million). Operating profit was EUR 0.5 million (EUR 0.8 million).
The division's net sales and operating profit decreased year-on-year due to weaker demand in the first and third quarters.FINANCING
Cash flow from operating activities amounted to EUR 35.9 million (EUR 33.6 million) in January-September. A total of EUR 17.3 million in working capital was committed (EUR 23.0 million committed). The amount of working capital committed in the comparison period was negatively affected by the use of a different payment practice for employment pension contributions in 2016.
At the end of the period, interest-bearing liabilities amounted to EUR 165.0 million (EUR 95.6 million).
Net interest-bearing liabilities amounted to EUR 133.1 million (EUR 65.7 million), showing an increase of EUR 94.5 million from the start of the year and an increase of EUR 67.5 million from the comparison period. To carry out the L&T FM AB acquisition, the Group took out a long-term bank loan of EUR 70 million in the third quarter.
Net financial expenses in January-September amounted to EUR 0.1 million (EUR 0.5 million). Net financial expenses were -0.0% (-0.1%) of net sales. Net financial expenses were substantially reduced by exchange rate gains realised from currency hedging related to the L&T FM acquisition.
The average interest rate on long-term loans (with interest rate hedging) was 1.0% (1.6%). Loans totalling EUR 21.3 million will mature during the remainder of 2017, including the short-term commercial papers currently in use.
The equity ratio was 39.8% (47.2%) and the gearing rate was 63.0 (30.7). Liquid assets at the end of the period amounted to EUR 31.9 million (EUR 30.0 million).
Of the EUR 100 million commercial paper programme, EUR 20 million (EUR 0.0 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 16 March 2017 resolved that a dividend of EUR 0.92 per share be paid on the basis of the balance sheet that was adopted for the financial year 2016. The dividend, totalling EUR 35.3 million, was paid to shareholders on 27 March 2017.
CAPITAL EXPENDITURE
Gross capital expenditure in the first three quarters of the year totalled EUR 95.4 million (EUR 27.1 million), consisting primarily of machine and equipment purchases, investments in information systems and acquisitions. The most significant investment was the acquisition of L&T FM AB. Of the significant ongoing information system projects, the new ERP system for Facility Services was deployed in the property maintenance business during the review period. System deployment processes for other service lines are still underway.
PERSONNEL In January-September, the average number of employees converted into full-time equivalents was 7,848 (7,278). At the end of the period, Lassila & Tikanoja had 8,892 (8,198) full-time and part-time employees. Of these, 7,328 (7,291) worked in Finland and 1,564 (907) in other countries. The changes are primarily due to the acquisition of L&T FM AB.
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading on Nasdaq Helsinki in January-September 2017, excluding the shares held by the company in Lassila & Tikanoja plc, was 4,548,434 shares, which is 11.8% (13.1%) of the average number of outstanding shares. The value of trading was EUR 84.8 million (EUR 82.6 million). The highest share price was EUR 20.89 and the lowest EUR 17.22. The closing price was EUR 18.10. At the end of the review period, the market capitalisation excluding the shares held by the company was EUR 695.0 million (EUR 662.0 million).
Own shares
At the end of the period, the company held 400,862 of its own shares, representing 1.0% 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 is 38,398,012. The average number of shares excluding the shares held by the company was 38,393,924.
Shareholders
At the end of the period, the company had 12,050 (10,697) shareholders. Nominee-registered holdings accounted for 19.7% (17.6%) of the total number of shares.
Authorisation for the Board of Directors
The Annual General Meeting held on 16 March 2017 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 a share issue and the issuance of special rights entitling their holders to shares.
The Board of Directors is authorised to purchase a maximum of 2,000,000 company shares (5.2% of the total number of shares). The repurchase authorisation is effective for 18 months.
The Board of Directors is authorised to decide on the issuance of new shares or shares which may be held by the company through a share issue and/or issuance of option rights or other special rights conferring entitlement to shares, referred to in Chapter 10, Section 1 of the Finnish Companies Act, so that under the authorisation, a maximum of 2,000,000 shares (5.2% of the total number of shares) may be issued and/or conveyed. The share issue authorisation is effective for 18 months.
BOARD OF DIRECTORS
The members of Lassila & Tikanoja plc's Board of Directors are Heikki Bergholm, Teemu Kangas-Kärki, Laura Lares, Sakari Lassila, Miikka Maijala and Laura Tarkka. At its constitutive meeting after the Annual General Meeting, the Board of Directors elected Heikki Bergholm as Chairman of the Board and Sakari Lassila as Vice Chairman.
Sakari Lassila was elected as the Chairman of the Audit Committee and Teemu Kangas-Kärki and Laura Tarkka as members. Heikki Bergholm was elected as the Chairman of the Personnel Committee and Laura Lares and Miikka Maijala as members.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 4, CHAPTER 6 OF THE SECURITIES MARKET ACT
On 13 June 2017, the company announced a change to its outlook for 2017. Full-year net sales in 2017 are expected to remain at the 2016 level and operating profit is expected to be below the 2016 level. Previously, the company had estimated that the 2017 net sales and operating profit were expected to remain at the 2016 level. The company lowered its outlook for the operating profit due to weak profitability in Facility Services and particularly in the renovation business. On 20 June 2017, the company announced that it has signed an agreement to acquire Veolia's facility management business in Sweden through the acquisition of 100 per cent of the shares of Veolia FM AB from Veolia Nordic AB. The company indicated that the acquisition is aimed at strengthening its presence in the Swedish facility services market by broadening its service offering in Sweden to include the maintenance of technical systems. On 4 July 2017, the company announced that it had received a notification from Kabouter Management LCC, indicating that its holding of the shares and votes in Lassila & Tikanoja plc has risen above the threshold of 5%, to 7.53%.EVENTS AFTER THE REVIEW PERIOD
The company management is not aware of any events of material importance that might have affected the preparation of the interim report. NEAR-TERM RISKS AND UNCERTAINTIES
Changes in the economy may result in significant changes in the secondary raw material markets for Environmental Services and the demand for Facility Services and Industrial Services.
Changes in the prices of fossil fuels may affect the demand of the recovered and renewable fuels produced by the company.
The deployment of the company's new ERP system, which began last year, will continue in 2017 and 2018. The deployment of the new system may lead to temporary costs arising from changes in the operating model, which can have a negative effect on the company's result.
More detailed information on Lassila & Tikanoja's risks and risk management is available in the 2016 Annual Report, and in the Report of the Board of Directors and the consolidated financial statements.
OUTLOOK FOR THE YEAR 2017
Lassila & Tikanoja's full-year net sales in 2017 are expected to remain at the 2016 level and operating profit is expected to be below the 2016 level.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY - 30 SEPTEMBER 2017
CONSOLIDATED INCOME STATEMENT
EUR million | 7-9/2017 | 7-9/2016 | 1-9/2017 | 1-9/2016 | 1-12/2016 | ||
Net sales | 175.9 | 166.0 | 505.1 | 493.5 | 661.8 | ||
Other operating income | 0.9 | 0.6 | 4.4 | 3.2 | 4.8 | ||
Change of inventory | 1.0 | 1.1 | 1.6 | 2.4 | 1.1 | ||
Materials and services | -55.8 | -51.0 | -160.7 | -151.7 | -206.3 | ||
Employee benefit expenses | -71.2 | -66.4 | -216.2 | -211.2 | -280.8 | ||
Other operating expenses | -23.2 | -21.8 | -71.7 | -67.3 | -91.4 | ||
Depreciation and impairment | -9.9 | -9.5 | -29.7 | -29.0 | -38.8 | ||
Operating profit | 17.6 | 19.1 | 32.8 | 39.9 | 50.5 | ||
Financial income and expenses | 0.5 | -0.4 | -0.1 | -0.5 | -0.4 | ||
Profit before tax | 18.0 | 18.7 | 32.6 | 39.4 | 50.1 | ||
Income taxes | -4.5 | -3.7 | -7.5 | -4.5 | -6.7 | ||
Profit for the period | 13.5 | 14.9 | 25.1 | 34.9 | 43.4 | ||
Attributable to: | |||||||
Equity holders of the company | 13.5 | 14.9 | 25.1 | 34.9 | 43.4 | ||
Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||
Earnings per share attributable to equity holders of the parent company: | |||||||
Earnings per share, EUR | 0.35 | 0.39 | 0.65 | 0.91 | 1.13 | ||
Diluted earnings per share, EUR | 0.35 | 0.39 | 0.65 | 0.91 | 1.13 | ||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million | 7-9/2017 | 7-9/2016 | 1-9/2017 | 1-9/2016 | 1-12/2016 |
Profit for the period | 13.5 | 14.9 | 25.1 | 34.9 | 43.4 |
Items not to be recognised through profit or loss | |||||
Items arising from re-measurement of defined benefit plans | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Items not to be recognised through profit or loss, total | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Items potentially to be recognised through profit or loss | |||||
Hedging reserve, change in fair value | 0.1 | 0.1 | 0.0 | 0.3 | 0.4 |
Currency translation differences | -1.2 | -0.3 | -1.4 | -0.4 | -0.1 |
Currency translation differences, non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Items potentially to be recognised through profit or loss, total | -1.2 | -0.2 | -1.4 | 0.0 | 0.3 |
Total comprehensive income, after tax | 12.4 | 14.7 | 23.7 | 34.9 | 43.7 |
Attributable to: | |||||
Equity holders of the company | 12.4 | 14.7 | 23.7 | 34.9 | 43.7 |
Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million | 9/2017 | 9/2016 | 12/2016 |
ASSETS | |||
Non-current assets | |||
Intangible assets | |||
Goodwill | 165.6 | 116.4 | 116.5 |
Customer contracts arising from acquisitions | 5.3 | 5.4 | 5.2 |
Agreements on prohibition of competition | 0.1 | 0.1 | 0.1 |
Other intangible assets arising from business acquisitions | 0.5 | 0.6 | 0.6 |
Other intangible assets | 22.3 | 19.6 | 20.8 |
193.8 | 142.2 | 143.2 | |
Property, plant and equipment | |||
Land | 5.3 | 5.0 | 5.3 |
Buildings and constructions | 40.7 | 40.3 | 40.7 |
Machinery and equipment | 104.6 | 102.2 | 104.8 |
Other tangible assets | 0.1 | 0.1 | 0.1 |
Prepayments and construction in progress | 2.5 | 4.7 | 5.3 |
153.2 | 152.3 | 156.1 | |
Other non-current assets | |||
Available-for-sale investments | 0.6 | 0.6 | 0.6 |
Finance lease receivables | 0.4 | 1.4 | 1.2 |
Deferred tax assets | 5.4 | 5.5 | 5.5 |
Other receivables | 2.8 | 1.8 | 1.7 |
9.2 | 9.3 | 9.0 | |
Total non-current assets | 356.1 | 303.7 | 308.3 |
Current assets | |||
Inventories | 26.8 | 26.3 | 24.9 |
Trade and other receivables | 130.8 | 95.3 | 90.5 |
Derivative receivables | 0.0 | 0.1 | 0.3 |
Prepayments | 1.1 | 10.7 | 0.6 |
Current available-for-sale financial assets | 0.0 | 0.0 | 0.0 |
Cash and cash equivalents | 31.9 | 30.0 | 28.2 |
Total current assets | 190.7 | 162.3 | 144.5 |
Total assets | 546.8 | 466.0 | 452.8 |
EQUITY AND LIABILITIES
EUR million | 9/2017 | 9/2016 | 12/2016 |
Equity | |||
Equity attributable to equity holders of the parent company | |||
Share capital | 19.4 | 19.4 | 19.4 |
Other reserves | -4.5 | -3.4 | -3.1 |
Invested unrestricted equity reserve | 0.6 | 0.4 | 0.4 |
Retained earnings | 170.7 | 162.6 | 162.7 |
Profit for the period | 25.1 | 34.9 | 43.4 |
211.3 | 213.9 | 222.8 | |
Non-controlling interest | 0.2 | 0.2 | 0.2 |
Total equity | 211.4 | 214.1 | 223.0 |
Liabilities | |||
Non-current liabilities | |||
Deferred tax liabilities | 25.1 | 24.3 | 24.8 |
Retirement benefit obligations | 1.5 | 0.9 | 1.0 |
Provisions | 4.7 | 4.4 | 4.8 |
Borrowings | 140.4 | 62.7 | 63.5 |
Other liabilities | 0.4 | 0.3 | 0.3 |
172.1 | 92.5 | 94.3 | |
Current liabilities | |||
Borrowings | 24.7 | 33.0 | 3.4 |
Trade and other payables | 137.4 | 122.7 | 129.9 |
Derivative liabilities | 0.1 | 0.2 | 0.1 |
Tax liabilities | 0.1 | 1.5 | 0.1 |
Provisions | 1.0 | 1.9 | 2.0 |
163.2 | 159.4 | 135.5 | |
Total liabilities | 335.3 | 251.9 | 229.8 |
Total equity and liabilities | 546.8 | 466.0 | 452.8 |
CONSOLIDATED STATEMENT OF CASH FLOW
EUR million | 1-9/2017 | 1-9/2016 | 1-12/2016 |
Cash flow from operating activities | |||
Profit for the period | 25.1 | 34.9 | 43.4 |
Adjustments | |||
Income taxes | 7.5 | 4.5 | 6.7 |
Depreciation and impairment | 29.7 | 29.0 | 38.8 |
Financial income and expenses | 0.1 | 0.5 | 0.4 |
Other | 0.5 | -2.8 | -2.1 |
Net cash generated from operating activities before change in working capital | 62.9 | 66.1 | 87.2 |
Change in working capital | |||
Change in trade and other receivables | -8.4 | -18.2 | -2.5 |
Change in inventories | -1.9 | -2.7 | -1.4 |
Change in trade and other payables | -7.0 | -2.1 | 6.6 |
Change in working capital | -17.3 | -23.0 | 2.7 |
Interest paid | -1.8 | -1.4 | -2.0 |
Interest received | 0.3 | 0.2 | 0.3 |
Income taxes | -8.2 | -8.2 | -11.7 |
Net cash from operating activities | 35.9 | 33.6 | 76.4 |
Cash flow from investing activities | |||
Acquisition of subsidiaries and businesses, net of cash acquired | -67.2 | -1.8 | -1.8 |
Purchases of property, plant and equipment and intangible assets | -17.3 | -20.6 | -33.9 |
Proceeds from sale of property, plant and equipment and intangible assets | 0.0 | 0.8 | 0.8 |
Purchases of available-for-sale investments | -0.8 | - | - |
Change in other non-current receivables | -0.3 | 0.2 | 0.2 |
Dividends received | - | 0.0 | 0.0 |
Net cash used in investing activities | -85.5 | -21.3 | -34.6 |
Cash flow from financing activities | |||
Change in short-term borrowings | 19.9 | -0.2 | -0.2 |
Proceeds from long-term borrowings | 70.0 | - | - |
Repayments of long-term borrowings | -1.3 | -3.5 | -34.8 |
Dividends paid | -35.3 | -32.6 | -32.6 |
Net cash generated from financing activities | 53.3 | -36.4 | -67.6 |
Net change in liquid assets | 3.7 | -24.0 | -25.9 |
Liquid assets at beginning of period | 28.2 | 54.0 | 54.0 |
Effect of changes in foreign exchange rates | 0.0 | -0.1 | 0.0 |
Liquid assets at end of period | 31.9 | 30.0 | 28.2 |
Liquid assets | |||
EUR million | 9/2017 | 9/2016 | 12/2016 |
Cash and cash equivalents | 31.9 | 30.0 | 28.2 |
Available-for-sale financial assets | 0.0 | 0.0 | 0.0 |
Total | 31.9 | 30.0 | 28.2 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million | Share capital | Currency translation differences | Hedgingreserve | Investedunres-tricted | Retainedearnings | Equityattribu-table to | Non-control-linginterest | Total |
Equity on 1 Jan. 2017 | 19.4 | -3.0 | -0.1 | 0.4 | 206.1 | 222.8 | 0.2 | 223.0 |
Total comprehensive income | ||||||||
Profit for the period | 25.1 | 25.1 | 0.0 | 25.1 | ||||
Items arising from remeasurement of defined benefit plans | 0.0 | 0.0 | 0.0 | |||||
Hedging reserve, change in fair value | 0.0 | 0.0 | 0.0 | |||||
Currency translation differences | -1.4 | 0.0 | -1.4 | 0.0 | -1.4 | |||
Total comprehensive income | -1.4 | 0.0 | 25.1 | 23.7 | 0.0 | 23.7 | ||
Transactions with shareholders | ||||||||
Share-based benefits | 0.1 | -0.1 | 0.0 | 0.0 | ||||
Dividends paid | -35.3 | -35.3 | -35.3 | |||||
Dividends returned | 0.0 | 0.0 | 0.0 | |||||
Acquisition of own shares | 0.0 | 0.0 | ||||||
Transactions with shareholders, total | 0.1 | -35.5 | -35.3 | -35.3 | ||||
Other changes | 0.1 | 0.1 | 0.1 | |||||
Equity on 30 Sep. 2017 | 19.4 | -4.5 | 0.0 | 0.6 | 195.8 | 211.3 | 0.2 | 211.4 |
EUR million | Share capital | Currency translation differences | Hedgingreserve | Investedunres-tricted | Retainedearnings | Equityattribu-table to | Non-control-linginterest | Total |
Equity on 1 Jan. 2016 | 19.4 | -2.9 | -0.4 | 0.5 | 194.7 | 211.2 | 0.1 | 211.4 |
Total comprehensive income | ||||||||
Profit for the period | 34.9 | 34.9 | 0.0 | 34.9 | ||||
Items arising from remeasurement of defined benefit plans | 0.0 | 0.0 | ||||||
Hedging reserve, change in fair value | 0.3 | 0.3 | 0.3 | |||||
Available-for-sale financial assets | 0.0 | 0.0 | ||||||
Currency translation differences | -0.4 | -0.4 | 0.0 | -0.3 | ||||
Total comprehensive income | -0.4 | 0.3 | 34.9 | 34.9 | 0.0 | 34.9 | ||
Transactions with shareholders | ||||||||
Share-based benefits | 0.0 | 0.4 | 0.4 | 0.4 | ||||
Dividends paid | -32.6 | -32.6 | -32.6 | |||||
Dividends returned | 0.0 | 0.0 | 0.0 | |||||
Acquisition of own shares | 0.0 | 0.0 | ||||||
Transactions with shareholders, total | 0.0 | -32.2 | -32.2 | -32.2 | ||||
Other changes | 0.1 | 0.1 | 0.1 | |||||
Equity on 30 Sep. 2016 | 19.4 | -3.3 | -0.1 | 0.4 | 197.5 | 213.9 | 0.2 | 214.1 |
KEY FIGURES
7-9/2017 | 7-9/2016 | 1-9/2017 | 1-9/2016 | 1-12/2016 | |
Earnings per share, EUR | 0.35 | 0.39 | 0.65 | 0.91 | 1.13 |
Diluted earnings per share, EUR | 0.35 | 0.39 | 0.65 | 0.91 | 1.13 |
Cash flow from operating activities/share, EUR | 0.35 | 0.76 | 0.93 | 0.88 | 1.99 |
EVA, EUR million* | 11.7 | 14.1 | 16.7 | 24.9 | 30.7 |
Gross capital expenditure, EUR million | 74.8 | 8.5 | 95.4 | 27.1 | 41.6 |
Depreciation, amortisation and impairment, EUR million | 9.9 | 9.5 | 29.7 | 29.0 | 38.8 |
Equity per share, EUR | 5.51 | 5.58 | 5.81 | ||
Return on equity, % (ROE) | 15.4 | 21.9 | 20.0 | ||
Return on invested capital, % (ROI) | 13.7 | 17.7 | 17.4 | ||
Equity ratio, % | 39.8 | 47.2 | 50.4 | ||
Gearing, % | 63.0 | 30.7 | 17.3 | ||
Net interest-bearing liabilities, EUR million | 133.1 | 65.7 | 38.7 | ||
Average number of employees in full-time equivalents | 7,848 | 7,278 | 7,199 | ||
Total number of full-time and part-time employees at end of period | 8,892 | 8,198 | 7,931 | ||
Number of outstanding shares adjusted for issues, 1,000 shares | |||||
average during the period | 38,394 | 38,374 | 38,375 | ||
at end of period | 38,398 | 38,378 | 38,378 | ||
average during the period, diluted | 38,409 | 38,389 | 38,390 |
* EVA = operating profit - cost calculated on invested capital (average of four quarters) WACC: 2017 6.69%, 2016 6.56%
ACCOUNTING POLICIES
This interim report is in compliance with the IAS 34 (Interim Financial Reporting) standard.
The interim report has been prepared with application of the current IFRS standards and interpretations presented in the financial statements dated 31 December 2016. Amendments to IFRS standards that have entered into force thereafter have also been applied. Such amendments to IFRS standards have not had a material effect on the half-year report.
More detailed information on accounting policies is presented in the consolidated financial statements of Lassila & Tikanoja plc dated 31 December 2016.
The Alternative Performance Measures reported by the company are EVA and cash flow from operating activities per share. The calculation formulas for the performance measures are presented at the end of the interim report.
The information presented in the interim report has not been audited.Application of IFRS 15 Revenue from Contracts with Customers Lassila & Tikanoja will apply the standard as of 1 January 2018.
IFRS 15 lays down a comprehensive framework for determining when revenue can be recognised and to what extent. IFRS 15 replaces the existing guidance on revenue recognition. In accordance with IFRS 15, an entity shall recognise revenue as a monetary amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services in question.
The new standard includes a five-step model for recognising revenue from contracts with customers. According to IFRS 15, revenue must be allocated to performance obligations based on relative transaction prices. A performance obligation is defined as a promise to transfer goods and/or services to a customer. The recognition takes place over time or at a specific point in time, with the passing of control as the key criterion.
Lassila & Tikanoja began preparing for the introduction of the standard in 2016 by carrying out a high-level analysis of the company's customer contracts by division/income flow. The provision of services accounts for a significant share of the company's income flows. Currently, revenue from services is recognised as the services are provided. The company has preliminarily estimated that control concerning a service is passed over time, as the customer simultaneously receives and consumes the benefit from the company's performance as the entity performs. Thus, the company satisfies the performance obligation and recognises revenue over time in accordance with IFRS 15. Therefore, according to current estimates, there will not be any substantial changes to the existing revenue recognition practices.
Customer accounts and contracts in which the timing of revenue recognition and, for example, the calculation method of variable consideration can change have also been identified in connection with the review of contracts. The changes are mainly related to the timing and amount of recognition of revenue from projects. The income flows that may be subject to potential changes represent less than 10% of the Group's current net sales.
Furthermore, IFRS 15 requires more detailed notes. The company will prepare the processes for collecting such notes during the 2017 financial year.
In accordance with IAS 8, the company will apply the standard retrospectively for each previous reporting period it presents, taking into account the practical expedients allowed by IFRS 15.SEGMENT INFORMATION
Net sales
7-9/2017 | 7-9/2016 | ||||||
EUR million | External | Inter-division | Total | External | Inter-division | Total | Total net sales, change % |
Environmental Services | 67.4 | 0.7 | 68.1 | 67.5 | 0.8 | 68.2 | -0.2 |
Industrial Services | 24.6 | 0.8 | 25.3 | 22.5 | 1.4 | 23.9 | 6.0 |
Facility Services | 79.2 | 0.7 | 79.9 | 70.8 | 0.7 | 71.5 | 11.8 |
Renewable Energy Sources | 4.7 | 0.0 | 4.8 | 5.3 | 0.0 | 5.3 | -10.9 |
Eliminations | -2.2 | -2.2 | -2.9 | -2.9 | |||
Total | 175.9 | 0.0 | 175.9 | 166.0 | 0.0 | 166.0 | 6.0 |
1-9/2017 | 1-9/2016 | ||||||
EUR million | External | Inter-division | Total | External | Inter-division | Total | Total net sales, change % |
Environmental Services | 196.0 | 2.4 | 198.3 | 195.7 | 2.5 | 198.2 | 0.1 |
Industrial Services | 64.3 | 2.5 | 66.8 | 58.4 | 2.3 | 60.7 | 10.1 |
Facility Services | 220.7 | 2.0 | 222.8 | 214.3 | 2.2 | 216.5 | 2.9 |
Renewable Energy Sources | 24.0 | 0.1 | 24.2 | 25.1 | 0.1 | 25.2 | -4.0 |
Eliminations | -7.0 | -7.0 | -7.1 | -7.1 | |||
Total | 505.1 | 0.0 | 505.1 | 493.5 | 0.0 | 493.5 | 2.3 |
12/2016 | |||||||
EUR million | External | Inter-division | Total | ||||
Environmental Services | 261.2 | 3.6 | 264.8 | ||||
Industrial Services | 78.7 | 3.4 | 82.1 | ||||
Facility Services | 285.3 | 2.9 | 288.3 | ||||
Renewable Energy Sources | 36.6 | 0.2 | 36.8 | ||||
Eliminations | -10.1 | -10.1 | |||||
Total | 661.8 | 0.0 | 661.8 |
Operating profit
EUR million | 7-9/ | % | 7-9/ | % | 1-9/ | % | 1-9/ | % | 1-12/ | % |
Environmental Services | 9.7 | 14.2 | 10.2 | 14.9 | 23.3 | 11.8 | 24.8 | 12.5 | 31.3 | 11.8 |
Industrial Services | 3.6 | 14.4 | 3.4 | 14.2 | 6.0 | 9.0 | 5.2 | 8.6 | 7.8 | 9.5 |
Facility Services | 5.1 | 6.4 | 6.1 | 8.5 | 6.0 | 2.7 | 10.9 | 5.0 | 13.5 | 4.7 |
Renewable Energy Sources | 0.0 | -0.7 | 0.1 | 2.0 | 0.5 | 1.9 | 0.8 | 3.1 | 1.5 | 4.1 |
Group administration and other | -0.8 | -0.7 | -3.0 | -1.8 | -3.7 | |||||
Total | 17.6 | 10.0 | 19.1 | 11.5 | 32.8 | 6.5 | 39.9 | 8.1 | 50.5 | 7.6 |
OTHER SEGMENT INFORMATION
EUR million | 9/2017 | 9/2016 | 12/2016 | |||
Assets | ||||||
Environmental Services | 215.9 | 219.1 | 215.4 | |||
Industrial Services | 75.6 | 72.2 | 69.5 | |||
Facility Services | 189.9 | 113.5 | 97.2 | |||
Renewable Energy Sources | 23.3 | 23.2 | 23.5 | |||
Group administration and other | 1.7 | 0.8 | 11.1 | |||
Unallocated assets | 40.4 | 37.2 | 36.0 | |||
L&T total | 546.8 | 466.0 | 452.8 | |||
Liabilities | ||||||
Environmental Services | 47.2 | 52.9 | 54.7 | |||
Industrial Services | 26.4 | 23.9 | 22.4 | |||
Facility Services | 60.3 | 45.4 | 46.9 | |||
Renewable Energy Sources | 7.4 | 6.5 | 7.0 | |||
Group administration and other | 3.7 | 1.4 | 6.6 | |||
Unallocated liabilities | 190.4 | 121.8 | 92.2 | |||
L&T total | 335.3 | 251.9 | 229.8 | |||
EUR million | 7-9/2017 | 7-9/2016 | 1-9/2017 | 1-9/2016 | 1-12/2016 | |
Capital expenditure | ||||||
Environmental Services | 6.2 | 4.0 | 17.8 | 13.4 | 18.5 | |
Industrial Services | 2.1 | 2.1 | 5.6 | 5.5 | 8.2 | |
Facility Services | 66.5 | 2.1 | 71.4 | 8.0 | 14.5 | |
Renewable Energy Sources | 0.0 | 0.2 | 0.2 | 0.3 | 0.3 | |
Group administration and other | 0.0 | 0.0 | 0.4 | 0.0 | 0.0 | |
L&T total | 74.8 | 8.5 | 95.4 | 27.1 | 41.6 | |
Depreciation and amortisation | ||||||
Environmental Services | 4.8 | 4.9 | 14.4 | 14.8 | 19.6 | |
Industrial Services | 1.8 | 1.7 | 5.3 | 4.9 | 6.7 | |
Facility Services | 3.2 | 2.9 | 9.7 | 9.1 | 12.2 | |
Renewable Energy Sources | 0.1 | 0.1 | 0.2 | 0.2 | 0.3 | |
Group administration and other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
L&T total | 9.9 | 9.5 | 29.7 | 29.0 | 38.8 | |
INCOME STATEMENT BY QUARTER
EUR million | 7-9/2017 | 4-6/2017 | 1-3/2017 | 10-12/2016 | 7-9/2016 |
Net sales | |||||
Environmental Services | 68.1 | 67.4 | 62.9 | 66.5 | 68.2 |
Industrial Services | 25.3 | 23.6 | 17.9 | 21.4 | 23.9 |
Facility Services | 79.9 | 71.4 | 71.4 | 71.8 | 71.5 |
Renewable Energy Sources | 4.8 | 7.3 | 12.1 | 11.6 | 5.3 |
Interdivision net sales | -2.2 | -2.5 | -2.3 | -3.0 | -2.9 |
L&T total | 175.9 | 167.2 | 161.9 | 168.3 | 166.0 |
Operating profit | |||||
Environmental Services | 9.7 | 7.7 | 5.9 | 6.5 | 10.2 |
Industrial Services | 3.6 | 2.6 | -0.2 | 2.6 | 3.4 |
Facility Services | 5.1 | 1.1 | -0.3 | 2.6 | 6.1 |
Renewable Energy Sources | 0.0 | 0.2 | 0.3 | 0.7 | 0.1 |
Group administration and other | -0.8 | -1.5 | -0.6 | -1.8 | -0.7 |
L&T total | 17.6 | 10.1 | 5.1 | 10.5 | 19.1 |
Operating margin | |||||
Environmental Services | 14.2 | 11.5 | 9.4 | 9.7 | 14.9 |
Industrial Services | 14.4 | 10.9 | -1.1 | 11.9 | 14.2 |
Facility Services | 6.4 | 1.6 | -0.4 | 3.6 | 8.5 |
Renewable Energy Sources | -0.7 | 2.9 | 2.4 | 6.2 | 2.0 |
L&T total | 10.0 | 6.0 | 3.2 | 6.2 | 11.5 |
Financial income and expenses, net | 0.5 | -0.7 | 0.1 | 0.1 | -0.4 |
Profit before tax | 18.0 | 9.4 | 5.2 | 10.6 | 18.7 |
MATCHING THE EVA RESULT TO OPERATING PROFIT
EUR million | 1-9/2017 | 1-9/2016 | 1-12/2016 |
Operating profit | 32.8 | 39.9 | 50.5 |
Invested capital (rolling 12-month quarterly average) | 319.5 | 304.9 | 300.6 |
Cost calculated on invested capital | -16.0 | -15.0 | -19.7 |
EVA | 16.7 | 24.9 | 30.7 |
BUSINESS ACQUISITIONS, COMBINED
Fair value, total | |||
EUR million | 1-9/2017 | 1-9/2016 | 1-12/2016 |
Intangible assets | 0.6 | 1.1 | 1.1 |
Property, plant and equipment | 1.0 | 1.8 | 1.8 |
Investments | 0.0 | 0.0 | 0.0 |
Receivables | 0.3 | 1.7 | 1.7 |
Cash and cash equivalents | 1.0 | 2.3 | 2.3 |
Total assets | 2.9 | 6.9 | 6.9 |
Other liabilities | 0.3 | 1.0 | 1.0 |
Deferred tax liabilities | 0.0 | 0.0 | 0.0 |
Total liabilities | 0.3 | 1.0 | 1.0 |
Net assets acquired | 2.6 | 5.9 | 5.9 |
Total consideration | 4.1 | 8.8 | 8.8 |
Goodwill | 1.5 | 2.9 | 2.9 |
Effect on cash flow | |||
Consideration paid in cash | -4.1 | -8.8 | -8.8 |
Cash and cash equivalents of the acquired company | 1.0 | 2.3 | 2.3 |
Paid in the previous year | - | 3.6 | 3.6 |
Unpaid | 0.2 | 1.0 | 1.0 |
Cash flow from investing activities | -3.0 | -1.8 | -1.8 |
The acquisition of L&T FM AB was completed on 31 August 2017 and the acquired entity has been included in the consolidated financial statements as of 1 September 2017. The IFRS calculations pertaining to the acquisition price have not yet been completed due to the short period of time between the finalisation of the transaction and the Q3 Interim Report. The preliminary goodwill presented herein will change significantly once the items measured at fair value have been separated from it.
The acquired net assets amounted to EUR 16.4 million and the effect of the acquisition on goodwill at the end of September is EUR 47.7 million. The acquisition's net effect on cash flow from investing activities is EUR 64.1 million.
In 2016, L&T FM AB (formerly Veolia FM AB) had net sales of SEK 952 million (EUR 102 million) and its operating result (EBIT) was SEK 62 million (EUR 6.6 million). Its balance sheet total in the 2016 financial statements was approximately SEK 300 million (EUR 31 million) and the company has 580 employees.
CHANGES IN INTANGIBLE ASSETS
EUR million | 1-9/2017 | 1-9/2016 | 1-12/2016 |
Carrying amount at beginning of period | 143.2 | 134.9 | 134.9 |
Business acquisitions | 49.9 | 1.4 | 1.4 |
Other capital expenditure | 5.1 | 6.9 | 9.2 |
Disposals | 0.0 | 0.2 | 0.2 |
Depreciation and impairment | -4.4 | -3.4 | -4.8 |
Transfers between items | 0.0 | 2.6 | 2.7 |
Exchange differences | -0.1 | -0.4 | -0.4 |
Carrying amount at end of period | 193.8 | 142.2 | 143.2 |
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million | 1-9/2017 | 1-9/2016 | 1-12/2016 |
Carrying amount at beginning of period | 156.1 | 161.5 | 161.5 |
Business acquisitions | 0.1 | 0.8 | 0.8 |
Other capital expenditure | 23.6 | 18.0 | 30.2 |
Disposals | -1.1 | -0.5 | -0.7 |
Depreciation and impairment | -25.3 | -25.6 | -34.0 |
Transfers between items | 0.0 | -2.6 | -2.7 |
Exchange differences | -0.3 | 0.6 | 1.0 |
Carrying amount at end of period | 153.2 | 152.3 | 156.1 |
CAPITAL COMMITMENTS
EUR million | 9/2017 | 9/2016 | 12/2016 |
Intangible assets | 0.2 | 0.1 | 0.1 |
Property, plant and equipment | 7.6 | 9.9 | 7.2 |
Total | 7.8 | 9.9 | 7.3 |
FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
EUR million | Loans and other receivables | Available-for-salefinancial assets | Financial liabilities measured using the effective interestmethod | Derivativesunder hedge | Carrying amounts bybalance sheet item | Fair valuehierarchy level |
Non-current financial assets | ||||||
Available-for-sale investments | 00.6 | 0.6 | 3 | |||
Finance lease receivables | 0.4 | 0.4 | 2 | |||
Other receivables | 1.3 | 1.3 | ||||
Current financial assets | ||||||
Trade and other receivables | 121.7 | 121.7 | ||||
Finance lease receivables | 0.7 | 0.7 | ||||
Derivative receivables | 0.0 | 0.0 | ||||
Cash and cash equivalents | 31.9 | 31.9 | ||||
Total financial assets | 156.0 | 0.6 | 0.0 | 156.6 | ||
Non-current financial liabilities | ||||||
Borrowings | 126.9 | 126.9 | 2 | |||
Finance lease payables | 13.5 | 13.5 | ||||
Other liabilities | 0.2 | 0.2 | ||||
Current financial liabilities | ||||||
Borrowings | 22.6 | 22.6 | ||||
Finance lease payables | 2.1 | 2.1 | ||||
Trade and other payables | 72.0 | 72.0 | ||||
Derivative liabilities | 0.1 | 0.1 | 2 | |||
Total financial liabilities | 237.1 | 0.1 | 237.2 |
The fair values of balance sheet items do not differ significantly from the carrying values of balance sheet items.
EUR million | Loans and other receivables | Available-for-salefinancial assets | Financial liabilities measured using the effective interestmethod | Derivativesunder hedge | Carrying amounts bybalance sheet item | Fair valuehierarchy level |
Non-current financial assets | ||||||
Available-for-sale investments | 0.6 | 0.6 | 3 | |||
Finance lease receivables | 1.4 | 1.4 | 2 | |||
Other receivables | 1.6 | 1.6 | ||||
Current financial assets | ||||||
Trade and other receivables | 88.4 | 88.4 | ||||
Finance lease receivables | 1.0 | 1.0 | ||||
Derivative receivables | 0.1 | 0.1 | ||||
Cash and cash equivalents | 30.0 | 30.0 | ||||
Total financial assets | 122.2 | 0.6 | 0.1 | 122.9 | ||
Non-current financial liabilities | 59.6 | 59.6 | 2 | |||
Borrowings | 3.1 | 3.1 | ||||
Finance lease receivables | 0.0 | 0.0 | ||||
Other liabilities | ||||||
Current financial liabilities | ||||||
Borrowings | 32.6 | 32.6 | ||||
Finance lease payables | 0.4 | 0.4 | ||||
Trade and other payables | 68.7 | 68.7 | ||||
Derivative liabilities | 0.2 | 0.2 | 2 | |||
Total financial liabilities | 164.4 | 0.2 | 164.6 |
The fair values of balance sheet items do not differ significantly from the carrying values of balance sheet items.
CONTINGENT LIABILITIES
EUR million | 9/2017 | 9/2016 | 12/2016 |
Securities for own commitments | |||
Mortgages on rights of tenancy | 0.2 | 0.2 | 0.2 |
Other securities | 0.1 | 0.1 | 0.1 |
Bank guarantees required for environmental permits | 10.4 | 12.4 | 10.9 |
Other securities are security deposits. | |||
Operating lease liabilities | |||
EUR million | 9/2017 | 9/2016 | 12/2016 |
Maturity not later than one year | 9.6 | 7.3 | 7.4 |
Maturity later than one year and not later than five years | 13.0 | 11.0 | 11.4 |
Maturity later than five years | 3.9 | 3.9 | 4.0 |
Total | 26.6 | 22.2 | 22.7 |
Liabilities associated with derivative agreements | |||
Interest rate swaps | |||
EUR million | 9/2017 | 9/2016 | 12/2016 |
Nominal values of interest rate swaps | |||
Maturity not later than one year | 1.8 | 31.8 | 1.8 |
Maturity later than one year and not later than five years | 1.8 | 3.6 | 2.7 |
Maturity later than five years | 0.0 | 0.0 | 0.0 |
Total | 3.6 | 35.5 | 4.5 |
Fair value | -0.1 | -0.2 | -0.1 |
The interest rate swaps are used for the hedging of cash flow related to floating rate loans, and hedge accounting under IAS 39 has been applied to them. The hedges have been effective, and the changes in their fair values are shown on the consolidated statement of comprehensive income for the period. The fair values of the swap contracts are based on the market data at the end of the review period.
Commodity derivatives
EUR million | 9/2017 | 9/2016 | 12/2016 |
Nominal values of diesel swaps | |||
Maturity not later than one year | 1.4 | 1.2 | 1.3 |
Maturity later than one year and not later than five years | 0.0 | 0.0 | 0.0 |
Total | 1.4 | 1.2 | 1.3 |
Fair value | 0.0 | 0.1 | 0.3 |
Commodity derivative contracts were signed for the hedging of future diesel oil purchases. IAS 39-compliant hedge accounting is applied to these contracts, and the effective change in fair value is recognised in the hedging reserve within equity. The fair values of commodity derivatives are based on market prices on the balance sheet date.
CALCULATION OF KEY FIGURES
Earnings per share:
profit attributable to equity holders of the parent company / adjusted average
basic number of shares
Diluted earnings per share:
profit attributable to equity holders of the parent company / adjusted average
diluted number of shares
Cash flow from operating activities/share:
cash flow from operating activities as in the statement of cash flow / adjusted average
basic number of shares
EVA:
operating profit - cost calculated on invested capital (average of four quarters)
WACC 2017: 6.69% and 2016: 6.56%
Equity per share:
profit 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 invested capital, % (ROI):
(profit before tax + financial expenses) / (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
Helsinki, 25 October 2017
LASSILA & TIKANOJA PLC
Board of Directors
Pekka Ojanpää
President and CEO
Additional information:
Pekka Ojanpää, President and CEO, tel. +358 10 636 2810
Timo Leinonen, CFO, tel. +358 400 793 073
Lassila & Tikanoja is a service company that is transforming 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 protect the environment. Together, we create well-being and jobs. With operations in Finland, Sweden and Russia, L&T employs 8,500 persons. Net sales in 2016 amounted to EUR 661.8 million. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lassila-tikanoja.fi
L&T - Lassila & Tikanoja Oyj published this content on 25 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 October 2017 05:12:00 UTC.
Original documenthttp://www.lassila-tikanoja.fi/en/news/Pages/Interim-Report-1-January---30-September-2017.aspx
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