Helsinki, Finland, 2018-01-31 07:00 CET (GLOBE NEWSWIRE) --
Lassila & Tikanoja plc
Financial statements
31 January 2018 at 8:00 a.m.
Lassila & Tikanoja Plc: Financial Statements 1 January-31 December 2017
- Net sales for the final quarter grew to EUR 207.0 million (168.3), operating
profit was EUR 11.4 million (10.5) and earnings per share EUR 0.22 (0.22)
- Full-year net sales increased by 7.6% to EUR 712.1 million (661.8), operating
profit was EUR 44.2 million (50.5) and earnings per share EUR 0.88 (1.13)
- Full-year net sales and operating profit in 2018 are expected to increase
compared to 2017
- The Board of Directors proposes a dividend of EUR 0.92 per share
CEO PEKKA OJANPÄÄ:
"Lassila & Tikanoja's net sales for 2017 increased from the previous year. The
growth was both organic and, in particular, attributable to the L&T FM AB
acquisition. Operating profit declined compared to the previous year.The net
sales and operating profit of the Industrial Services division increased
year-on-year due to strong demand and improved operational efficiency. The net
sales of Environmental Services remained on a par with the previous year, but
the division's market position improved particularly in the retail and
industrial segments. In Facility Services, the operating profit of the cleaning
business developed favourably, while the weak profitability of the renovation
business and costs related to the deployment of the new ERP system weighed down
on operating profit in 2017. The integration of L&T FM AB is underway and
progressing as planned. Non-recurring costs related to the acquisition weighed
down on the Group's operating profit. In line with our strategy, our focus in
2018 remains on strengthening our market position and improving profitability,
particularly by revamping the operating model of Facility Services. The
benefits of this renewal will, for the most part, be seen at the division level
in 2019."
GROUP NET SALES AND FINANCIAL PERFORMANCE
October-December
Lassila & Tikanoja's net sales for the final quarter increased to EUR 207.0
million (168.3), up 23.0% (1.9) year-on-year. Operating profit totalled EUR
11.4 million (10.5), representing 5.5% (6.2) of net sales. Earnings per share
were EUR 0.22 (0.22).
Net sales increased organically and due to the acquisition of L&T FM AB. The
Facility Services division's net sales increased by 50.8% year-on-year.
Excluding L&T FM AB, the net sales of Facility Services increased by 11.3%.The
net sales of Industrial Services grew by 11.6% due to strong demand. The net
sales of the Environmental Services division increased by 0.6%. The net sales
of the Renewable Energy Sources division declined by 7.5%.
Year 2017
Net sales for 2017 increased by 7.6% to EUR 712.1 million (661.8). Excluding
L&T FM AB, the Group's net sales increased by 2.1%. Operating profit totalled
EUR 44.2 million (50.5), representing 6.2% (7.6) of net sales. Earnings per
share were EUR 0.88 (1.13).
Net sales increased by 10.5% in Industrial Services and by 14.8% in Facility
Services, primarily due to the acquisition of L&T FM AB. The net sales of
Environmental Services were on a par with the previous year. The net sales of
the Renewable Energy Sources division declined by 5.1%. The decrease was
attributable to low demand due to the short heating season as well the low
energy content of fuels.
Operating profit improved in Industrial Services but declined in the other
divisions. Environmental Services' operating profit was reduced by fuel costs
being higher than in the previous year and a cost provision related to the
closure of landfills. In Facility Services, the operating profit of the
cleaning business developed favourably, while the weak profitability of the
renovation business and costs related to the deployment of the new ERP system
in the property maintenance business had a negative impact on the result. The
Group's result was also weighed down by costs related to the acquisition and
integration of L&T FM AB.
Financial summary
10-12/ 10-12/ Change 1-12/ 1-12/ Change
2017 2016 2017 2016
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales, EUR million 207.0 168.3 23.0% 712.1 661.8 7.6%
Operating profit, EUR million 11.4 10.5 8.8% 44.2 50.5 -12.4%
Operating margin, % 5.5 6.2 6.2 7.6
Profit before tax, EUR million 10.1 10.6 -5.4% 42.7 50.1 -14.7%
Earnings per share, EUR 0.22 0.22 1.2% 0.88 1.13 -22.4%
Dividend/share, EUR 0.92* 0,92
Cash flow from operating 0.67 1.11 -39.5% 1.61 1.99 -19.1%
activities/share, EUR
EVA, EUR million 4.5 5.8 -22.3% 21.2 30.7 -30.9%
* Proposal by the Board of Directors
NET SALES AND OPERATING PROFIT BY DIVISION
Environmental Services
October-December
The Environmental Services division's net sales for the fourth quarter
increased by 0.6% to EUR 67.0 million (66.5). Operating profit was on a par
with the previous year at EUR 6.5 million (6.5).
Demand was at a good level and the division's market position improved in
recycled raw materials as well as the retail and industrial segments.
Year 2017
The Environmental Services division's full-year net sales increased by 0.2% to
EUR 265.3 million (264.8). Operating profit was EUR 29.8 million (31.3).
Net sales from municipal contracts decreased, but the division's market
position improved in recycled raw materials as well as the retail and
industrial segments.
Net sales and profitability were on a par with the previous year. The
division's operating profit was reduced by fuel costs being higher than in the
previous year as well as an increase of EUR 0.6 million in cost provisions
related to the closure of landfills, recognised in the second quarter.
Industrial Services
October-December
The Industrial Services division's net sales for the final quarter increased by
11.6% to EUR 23.9 million (21.4). Operating profit was unchanged from the
previous year at EUR 2.6 million (2.6).
Net sales increased year-on-year in all of the division's service lines. Strong
demand supported the growth of net sales particularly in environmental
construction.
Year 2017
The Industrial Services division's full-year net sales grew by 10.5% to EUR
90.7 million (82.1). Operating profit was EUR 8.6 million (7.8).
The division's net sales increased year-on-year particularly in process
cleaning, sewer maintenance and hazardous waste management. The net sales of
environmental construction were on a par with the previous year.
Strong demand and the improved efficiency of operations improved the division's
result compared to the previous year. Operating profit showed a year-on-year
increase particularly in hazardous waste management.
Facility Services
October-December
The Facility Services division's net sales for the final quarter increased by
50.8% to EUR 108.2 million (71.8). Operating profit was EUR 3.2 million (2.6).
Improved demand supported the growth of net sales in renovation services,
maintenance of technical systems and cleaning. All of the division's service
lines saw an increase in operating profit, with the exception of the property
maintenance business.
Year 2017
The Facility Services division's full-year net sales grew by 14.8% to EUR 331.0
million (288.3). Operating profit was EUR 9.2 million (13.5).
The division's net sales increased primarily due to the acquisition of L&T FM
AB, but amortisation related to its purchase price allocation and integration
costs weighed down on operating profit. The operating profit of the cleaning
business grew year-on-year due to strong demand and operational efficiency. In
maintenance of technical systems and renovation, operating profit declined
compared to the previous year. The operating profit of the property maintenance
business was weighed down by costs related to the deployment of a new ERP
system in the Facility Services division.
Renewable Energy Sources
October-December
The final quarter net sales of Renewable Energy Sources (L&T Biowatti)
decreased by 7.5% to EUR 10.7 million (11.6). Operating profit was EUR 0.2
million (0.7).
Operating profit decreased year-on-year due to the low energy content of fuels
and low volume.
Year 2017
The full-year net sales of the Renewable Energy Sources division decreased by
5.1% to EUR 34.9 million (36.8). Operating profit was EUR 0.7 million (1.5).
The year-on-year decline in the division's net sales and operating profit was
mainly attributable to the low demand for forest energy due to the short
heating season, the weak energy content of fuels and increasing delivery costs.
FINANCING
Cash flow from operating activities amounted to EUR 61.8 million (76.4). A
total of EUR 10.8 million in working capital was committed (2.7 released).
At the end of the period, interest-bearing liabilities amounted to EUR 165.9
million (66.9).
Net interest-bearing liabilities amounted to EUR 117.9 million (38.7), showing
a decrease of EUR 15.3 million from the previous quarter and an increase of EUR
79.2 million from the comparison period.
Net financial expenses in 2017 amounted to EUR 1.4 million (0.4). Net financial
expenses were 0.2% (0.1) of net sales.
The average interest rate on long-term loans (with interest rate hedging) was
1.1% (1.6). Loans totalling EUR 22.6 million will mature in 2018, including the
short-term commercial paper currently in use.
The equity ratio was 39.3% (50.4) and the gearing rate was 53.9 (17.3). Liquid
assets at the end of the period amounted to EUR 48.1 million (28.2).
Of the EUR 100 million commercial paper programme, EUR 20 million (0.0) 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 2017 totalled EUR 110.3 million (41.6), consisting
primarily of acquisitions, machine and equipment purchases and investments in
information systems. 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
in early 2017. System deployment processes for the other service lines will
continue in 2018.
PERSONNEL
In 2017, the average number of employees converted into full-time equivalents
was 7,875 (7,199). At the end of the period, Lassila & Tikanoja had 8,663
(7,931) full-time and part-time employees. Of these, 7,041 (7,023) worked in
Finland and 1,622 (908) in other countries.
PROPOSAL FOR THE DISTRIBUTION OF ASSETS
According to the financial statements, Lassila & Tikanoja plc's unrestricted
equity amounts to EUR 102,864,459.89, with the operating profit for the period
representing EUR 34,195,639.76 of this total. There were no substantial changes
in the financial standing of the company after the end of the period, and the
solvency test referred to in Chapter 13, Section 2 of the Companies Act does
not affect the amount of distributable assets.
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.92 per share be paid for the financial year 2017. The dividend is paid
to shareholders included in the company shareholder register maintained by
Euroclear Finland Oy on the record date, 19 March 2018. The Board proposes to
the Annual General Meeting that the dividend be paid on 26 March 2018.
No dividend shall be paid on shares held by the company on the record date of
19 March 2018.
On the day the proposal for the distribution of assets was made, the number of
shares entitling to dividend was 38,398,012, which means the total amount of
the dividend would be EUR 35,326,171.04. Earnings per share amounted to EUR
0.88. The proposed dividend, EUR 0.92 per share, is 104.8% of the earnings per
share.
L&T's Annual Report, which includes the report by the Board of Directors and
the financial statements for 2017, will be published in week 8 at
www.lt.fi/annualreport2017.
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading on Nasdaq Helsinki in 2017, excluding the shares held by
the company in Lassila & Tikanoja plc, was 5,480,149 shares, which is 14.3%
(16.9) of the average number of outstanding shares. The value of trading was
EUR 101.6 million (110.1). The highest share price was EUR 20.89 and the lowest
EUR 17.22. The closing price was EUR 18.06. At the end of the review period,
the market capitalisation excluding the shares held by the company was EUR
693.5 million (736.9).
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 38,394,955.
Shareholders
At the end of the period, the company had 12,208 (10,812) shareholders.
Nominee-registered holdings accounted for 19.5% (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.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting, which was held on 16 March 2017, adopted the
financial statements and consolidated financial statements for 2016 and
released the members of the Board of Directors and the President and CEO from
liability.
The Annual General Meeting resolved that a dividend of EUR 0.92 per share,
totalling EUR 35.3 million, be paid on the basis of the balance sheet adopted
for the financial year 2016. It was decided that the dividend be paid on 27
March 2017.
The Annual General Meeting confirmed the number of members of the Board of
Directors as six. Heikki Bergholm, Laura Lares, Sakari Lassila, Miikka Maijala
and Teemu Kangas-Kärki were re-elected and Laura Tarkka was elected as a new
member to the Board until the end of the following Annual General Meeting.
KPMG Oy Ab, Authorised Public Accountants, was elected auditor. KPMG Oy Ab
named 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 16 March 2017.
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 31 March 2017, the company announced that, based on the decision of the
Annual General Meeting of Lassila & Tikanoja plc on 16 March 2017, it had
transferred 3,896 shares to the members of the Board of Directors as part of
the remuneration of the Board.
On 21 April 2017, the company announced that, starting from the interim report
for January-March 2017, it will report its results through an income statement
categorised by expense type. The stock exchange release presented cumulative
quarterly comparison data by expense type for 2016 in accordance with the new
income statement scheme. Previously, the company has used an income statement
categorised by operation type in its reporting. The change has no impact on the
Group's segment reporting. The presentation method was changed to correspond to
the income statement scheme used in the management's reporting.
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%.
On 31 August 2017, the company announced that it had completed the acquisition
of Veolia's facility management business in Sweden.
On 16 November 2017, the company announced a change to its outlook for 2017.
According to the new guidance, full-year net sales in 2017 were expected to be
above the 2016 level and operating profit was expected to be below the 2016
level.
On 22 November 2017, the company announced changes in its management. Lassila &
Tikanoja merged the positions of CFO, Supply Chain Director and Development
Director as of 1 January 2018. M.Sc. (Econ.) Tuomas Mäkipeska was named CFO in
charge of finances, ICT, development and procurement and Member of the Group
Executive Board beginning 1 January 2018. The company announced that CFO and
Member of the Group Executive Board Timo Leinonen and Supply Chain Director and
Member of the Group Executive Board Timo Kontinen would leave the company.
On 14 December 2017, the company announced it is changing its segment reporting
to report the Maintenance of Technical Systems business as a separate segment
as of 1 January 2018. Lassila & Tikanoja's new structure consists of five
reporting segments: Environmental Services, Industrial Services, Facility
Services, Renewable Energy Sources and Maintenance of Technical Systems. The
interim report for the first quarter of 2018 will be prepared in accordance
with the new reporting structure.
EVENTS AFTER THE REVIEW PERIOD
The company's management is not aware of any events of material importance
after the review period that might have affected the preparation of the
financial statements release.
NEAR-TERM RISKS AND UNCERTAINTIES
Fluctuations in the prices of fossil fuels may affect the demand of the
recovered and renewable fuels produced by the company.
The company has begun the deployment of a new ERP system and will continue the
deployment process in 2018. The deployment of the new system may lead to
temporary overlapping 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 2017 Annual Report, which will be published in week 8, and in
the Report of the Board of Directors and the consolidated financial statements.
OUTLOOK FOR THE YEAR 2018
Lassila & Tikanoja's net sales and operating profit in 2018 are expected to be
above the 2017 levels.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY - 31 DECEMBER 2017
CONSOLIDATED INCOME STATEMENT
EUR million 10-12/2 10-12/2 1-12/2 1-12/2
017 016 017 016
--------------------------------------------------------------------------------
Net sales 207.0 168.3 712.1 661.8
Other operating income 1.3 1.7 5.7 4.8
Change of inventory -2.6 -1.3 -1.0 1.1
Materials and services -74.1 -54.6 -234.9 -206.3
Employee benefit expenses -80.7 -69.6 -296.9 -280.8
Other operating expenses -28.5 -24.1 -100.3 -91.4
Depreciation and impairment -10.9 -9.8 -40.5 -38.8
Operating profit 11.4 10.5 44.2 50.5
Financial income and expenses -1.3 0.1 -1.4 -0.4
Share of the result of associated companies 0.0 0.0 -0.1 0.0
Profit before tax 10.1 10.6 42.7 50.1
Income taxes -1.5 -2.1 -9.0 -6.7
Profit for the period 8.6 8.5 33.7 43.4
Attributable to:
Equity holders of the company 8.6 8.5 33.7 43.4
Non-controlling interest 0.0 0.0 0.0 0.0
Earnings per share attributable to equity
holders of the parent company:
Earnings per share, EUR 0.22 0.22 0.88 1.13
Diluted earnings per share, EUR 0.22 0.22 0.88 1.13
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million 10-12/20 10-12/20 1-12/20 1-12/20
17 16 17 16
--------------------------------------------------------------------------------
Profit for the period 8.6 8.5 33.7 43.4
Items not to be recognised through profit
or loss
Items arising from remeasurement of 0.1 0.0 0.1 0.0
defined benefit plans
--------------------------------------------------------------------------------
Items not to be recognised through profit 0.1 0.0 0.1 0.0
or loss, total
Items potentially to be recognised through
profit or loss
Hedging reserve, change in fair value -0.1 0.1 -0.1 0.4
Currency translation differences -1.3 0.2 -2.7 -0.1
Currency translation differences, 0.0 0.0 0.0 0.0
non-controlling interest
--------------------------------------------------------------------------------
Items potentially to be recognised through -1.4 0.3 -2.8 0.3
profit or loss, total
--------------------------------------------------------------------------------
Total comprehensive income, after tax 7.2 8.8 30.9 43.7
Attributable to:
Equity holders of the company 7.2 8.8 30.9 43.7
Non-controlling interest 0.0 0.0 0.0 0.0
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 12/2017 12/2016
-----------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets
Goodwill 150.2 116.5
Customer contracts arising from acquisitions 22.6 5.2
Agreements on prohibition of competition 0.0 0.1
Other intangible assets arising from business acquisitions 0.5 0.6
Other intangible assets 22.9 20.8
-----------------------------------------------------------------------------
196.3 143.2
Property, plant and equipment
Land 5.3 5.3
Buildings and constructions 40.3 40.7
Machinery and equipment 106.5 104.8
Other tangible assets 0.1 0.1
Prepayments and construction in progress 2.0 5.3
-----------------------------------------------------------------------------
154.1 156.1
Other non-current assets
Available-for-sale investments 0.6 0.6
Finance lease receivables 0.3 1.2
Deferred tax assets 6.5 5.5
Other receivables 2.6 1.7
-----------------------------------------------------------------------------
10.0 9.0
Total non-current assets 360.4 308.3
Current assets
Inventories 23.9 24.9
Trade and other receivables 137.6 90.5
Derivative receivables 0.1 0.3
Prepayments 0.5 0.6
Cash and cash equivalents 48.1 28.2
-----------------------------------------------------------------------------
Total current assets 210.2 144.5
Total assets 570.6 452.8
-----------------------------------------------------------------------------
EQUITY AND LIABILITIES
EUR million 12/2017 12/2016
-----------------------------------------------------------------------------
Equity
Equity attributable to equity holders of the parent company
Share capital 19.4 19.4
Other reserves -5.9 -3.1
Invested unrestricted equity reserve 0.6 0.4
Retained earnings 170.7 162.7
Profit for the period 33.7 43.4
-----------------------------------------------------------------------------
218.5 222.8
Non-controlling interest 0.2 0.2
-----------------------------------------------------------------------------
Total equity 218.7 223.0
Liabilities
Non-current liabilities
Deferred tax liabilities 29.2 24.8
Retirement benefit obligations 1.4 1.0
Provisions 5.0 4.8
Borrowings 140.9 63.5
Other liabilities 0.4 0.3
-----------------------------------------------------------------------------
177.0 94.3
Current liabilities
Borrowings 25.0 3.4
Trade and other payables 147.7 129.9
Derivative liabilities 0.2 0.1
Tax liabilities 0.1 0.1
Provisions 1.9 2.0
-----------------------------------------------------------------------------
174.9 135.5
Total liabilities 351.9 229.8
Total equity and liabilities 570.6 452.8
-----------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOW
EUR million 1-12/2017 1-12/201
6
--------------------------------------------------------------------------------
Cash flow from operating activities
Profit for the period 33.7 43.4
Adjustments
Income taxes 9.0 6.7
Depreciation and impairment 40.5 38.8
Financial income and expenses 1.4 0.4
Other 0.7 -2.1
--------------------------------------------------------------------------------
Net cash generated from operating activities before change in 85.3 87.2
working capital
Change in working capital
Change in trade and other receivables -14.6 -2.5
Change in inventories 1.0 -1.4
Change in trade and other payables 2.8 6.6
--------------------------------------------------------------------------------
Change in working capital -10.8 2.7
Interest paid -2.7 -2.0
Interest received 0.5 0.3
Income taxes -10.5 -11.7
--------------------------------------------------------------------------------
Net cash from operating activities 61.8 76.4
Cash flow from investing activities
Acquisition of subsidiaries and businesses, net of cash -67.2 -1.8
acquired
Purchases of property, plant and equipment and intangible assets -25.5
-33.9
Proceeds from sale of property, plant and equipment and intangible 1.7
assets 0.8
Investments in associated companies -0.8 -
Change in other non-current receivables -0.3 0.2
Dividends received - 0.0
Net cash used in investing activities -92.1 -34.6
Cash flow from financing activities
Change in short-term borrowings 18.3 -0.2
Proceeds from long-term borrowings 69.9 -
Repayments of long-term borrowings -2.6 -34.8
Dividends paid -35.3 -32.6
Net cash generated from financing activities 50.3 -67.6
Net change in liquid assets 20.0 -25.9
Liquid assets at beginning of period 28.2 54.0
Effect of changes in foreign exchange rates -0.1 0.0
--------------------------------------------------------------------------------
Liquid assets at end of period 48.1 28.2
Liquid assets 12/201 12/2016
7
EUR million
--------------------------------------------------------------------------------
Cash and cash equivalents 48.1 28.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 48.1 28.2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR Share Curren Hedgin Investe Retain Equity Non-co Total
million capita cy g d ed attributabl ntroll equity
l transl reserv unrestr earnin e to equity ing
ation e icted gs holders of intere
differ equity the parent st
ences reserve company
--------------------------------------------------------------------------------
Equity on 19.4 -3.0 -0.1 0.4 206.1 222.8 0.2 223.0
1 Jan.
2017
Total
comprehen
sive
income
Profit for 33.7 33.7 0.0 33.7
the
period
Items 0.1 0.1 0.1
arising
from
remeasure
ment of
defined
benefit
plans
Hedging -0.1 -0.1 -0.1
reserve,
change in
fair
value
Currency -2.7 -2.7 0.0 -2.7
translati
on
differenc
es
--------------------------------------------------------------------------------
Total -2.7 -0.1 33.7 30.9 0.0 30.9
comprehen
sive
income
Transactio
ns with
sharehold
ers
Share-base 0.1 -0.2 0.0 0.0
d benefits
Dividends -35.3 -35.3 -35.3
paid
--------------------------------------------------------------------------------
Transactio 0.1 -35.5 -35.4 -35.4
ns with
sharehold
ers, total
Other 0.1 0.1 0.1
changes
--------------------------------------------------------------------------------
Equity on 19.4 -5.7 -0.2 0.6 204.4 218.5 0.2 218.7
31 Dec.
2017
EUR Share Curren Hedgin Investe Retain Equity Non-co Total
million capita cy g d ed attributabl ntroll equity
l transl reserv unrestr earnin e to equity ing
ation e icted gs holders of intere
differ equity the parent st
ences reserve company
--------------------------------------------------------------------------------
Equity on 19.4 -2.9 -0.4 0.5 194.7 211.2 0.1 211.4
1 Jan.
2016
Total
comprehen
sive
income
Profit for 43.4 43.4 0.0 43.4
the
period
Items 0.0 0.0 0.0
arising
from
remeasure
ment of
defined
benefit
plans
Hedging 0.4 0.4 0.4
reserve,
change in
fair
value
Currency -0.1 -0.1 0.0 -0.1
translati
on
differenc
es
--------------------------------------------------------------------------------
Total -0.1 0.4 43.4 43.7 0.0 43.7
comprehen
sive
income
Transactio
ns with
sharehold
ers
Share-base 0.0 0.5 0.5 0.5
d benefits
Dividends -32.6 -32.6 -32.6
paid
Dividends 0.0 0.0 0.0
returned
--------------------------------------------------------------------------------
Transactio 0.0 -32.1 -32.1 -32.1
ns with
sharehold
ers, total
Other 0.0 0.0 0.0
changes
--------------------------------------------------------------------------------
Equity on 19.4 -3.0 -0.1 0.4 206.1 222.8 0.2 223.0
31 Dec.
2016
KEY FIGURES
10-12/20 10-12/20 1-12/20 1-12/20
17 16 17 16
--------------------------------------------------------------------------------
Earnings per share, EUR 0.22 0.22 0.88 1.13
Diluted earnings per share, EUR 0.22 0.22 0.88 1.13
Cash flow from operating activities/share, 0.67 1.11 1.61 1.99
EUR
EVA, EUR million* 4.5 5.8 21.2 30.7
Gross capital expenditure, EUR million 14.9 14.4 110.3 41.6
Depreciation, amortisation and impairment, 10.9 9.8 40.5 38.8
EUR million
Equity per share, EUR 5.69 5.81
Dividend/share, EUR 0.92** 0.92
Dividend/earnings, % 104.8 81.3
Effective dividend yield, % 19.3 4.8
P/E ratio 20.6 17.0
Return on equity, % (ROE) 15.3 20.0
Return on invested capital, % (ROI) 13.4 17.4
Equity ratio, % 39.3 50.4
Gearing, % 53.9 17.3
Net interest-bearing liabilities, EUR 117.9 38.7
million
Average number of employees in full-time 7,875 7,199
equivalents
Total number of full-time and part-time employees at 8,663 7,931
end of period
Number of outstanding shares adjusted for
issues, 1,000 shares
average during the period 38,395 38,375
at end of period 38,398 38,378
average during the period, diluted 38,409 38,390
* EVA = operating profit - cost calculated on invested capital (average of four
quarters). WACC: 2017 6.69%, 2016 6.56%
** Proposal by the Board of Directors 2017
ACCOUNTING POLICIES
This financial statements release is in compliance with the IAS 34 (Interim
Financial Reporting) standard.
The financial statements release 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 financial statements release.
More detailed information on accounting policies is presented in the
consolidated financial statements of Lassila & Tikanoja plc dated 31 December
2017.
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 financial statements release has not been
audited.
Application of IFRS 9 Financial Instruments
Lassila & Tikanoja will apply the standard as of 1 January 2018.
IFRS 9 replaces the existing guidance in IAS 39. The new standard includes
revised guidance on the classification and measurement of financial
instruments, including a new expected credit loss model for calculating
impairment on financial assets, and the new general hedge accounting
requirements. It also carries forward the guidance on recognition and
derecognition of financial instruments from IAS 39. The impacts of IFRS 9 on
equity of the opening balance sheet for January 1, 2018 is -0,4 MEUR.
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 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. There will not be any substantial
changes to the existing revenue recognition practices.
The need for changes in the timing of revenue recognition identified when
contracts were reviewed is related to equipment sales (compactors and balers),
which represent approximately 0.5% of L&T's net sales.
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. The impacts of IFRS 15 on equity of
the opening balance sheet for January 1, 2018 is -1,3 MEUR.
SEGMENT INFORMATION
Net sales
10-12/20 10-12/20
17 16
EUR million Extern Interdiv Total Extern Interdiv Total Total net
al ision al ision sales, change
%
--------------------------------------------------------------------------------
Environmental 65.8 1.1 67.0 65.5 1.1 66.5 0.6
Services
Industrial 23.1 0.8 23.9 20.3 1.1 21.4 11.6
Services
Facility 107.5 0.8 108.2 71.0 0.8 71.8 50.8
Services
Renewable 10.7 0.0 10.7 11.6 0.0 11.6 -7.5
Energy
Sources
Eliminations -2.7 -2.7 -3.0 -3.0
--------------------------------------------------------------------------------
Total 207.0 207.0 168.3 168.3 23.0
1-12/201 1-12/201
7 6
EUR million Extern Interdiv Total Extern Interdiv Total Total net
al ision al ision sales, change
%
--------------------------------------------------------------------------------
Environmental 261.8 3.5 265.3 261.2 3.6 264.8 0.2
Services
Industrial 87.4 3.3 90.7 78.7 3.4 82.1 10.5
Services
Facility 328.2 2.8 331.0 285.3 2.9 288.3 14.8
Services
Renewable 34.7 0.2 34.9 36.6 0.2 36.8 -5.1
Energy
Sources
Eliminations -9.8 -9.8 -10.1 -10.1
--------------------------------------------------------------------------------
Total 712.1 712.1 661.8 661.8 7.6
Operating profit
EUR million 10-12/20 % 10-12/2 % 1-12/20 % 1-12/20 %
17 016 17 16
--------------------------------------------------------------------------------
Environmental 6.5 9.7 6.5 9.7 29.8 11.2 31.3 11.8
Services
Industrial Services 2.6 10.8 2.6 11.9 8.6 9.5 7.8 9.5
Facility Services 3.2 3.0 2.6 3.6 9.2 2.8 13.5 4.7
Renewable Energy 0.2 2.2 0.7 6.2 0.7 2.0 1.5 4.1
Sources
Group -1.0 -1.8 -4.1 -3.7
administration and
other
--------------------------------------------------------------------------------
Total 11.4 5.5 10.5 6.2 44.2 6.2 50.5 7.6
OTHER SEGMENT INFORMATION
EUR million 12/2017 12/2016
----------------------------------------------------------
Assets
Environmental Services 212.0 215.4
Industrial Services 74.1 69.5
Facility Services 202.2 97.2
Renewable Energy Sources 22.7 23.5
Group administration and other 2.1 11.1
Unallocated assets 57.5 36.0
----------------------------------------------------------
L&T total 570.6 452.8
Liabilities
Environmental Services 47.3 54.7
Industrial Services 27.4 22.4
Facility Services 68.1 46.9
Renewable Energy Sources 7.6 7.0
Group administration and other 5.4 6.6
Unallocated liabilities 196.2 92.2
----------------------------------------------------------
L&T total 351.9 229.8
EUR million 10-12/2017 10-12/2016 1-12/2017 1-12/2016
----------------------------------------------------------------------------
Capital expenditure
Environmental Services 4.1 5.1 21.9 18.5
Industrial Services 3.4 2.8 9.0 8.2
Facility Services 7.3 6.5 78.7 14.5
Renewable Energy Sources 0.0 0.1 0.2 0.3
Group administration and other 0.0 0.0 0.4 0.0
----------------------------------------------------------------------------
L&T total 14.9 14.4 110.3 41.6
Depreciation and amortisation
Environmental Services 4.9 4.8 19.3 19.6
Industrial Services 2.0 1.8 7.3 6.7
Facility Services 3.9 3.2 13.6 12.2
Renewable Energy Sources 0.1 0.1 0.3 0.3
Group administration and other 0.0 0.0 0.0 0.0
----------------------------------------------------------------------------
L&T total 10.9 9.8 40.5 38.8
INCOME STATEMENT BY QUARTER
EUR million 10-12/20 7-9/201 4-6/201 1-3/201 10-12/2
17 7 7 7 016
--------------------------------------------------------------------------------
Net sales
Environmental Services 67.0 68.1 67.4 62.9 66.5
Industrial Services 23.9 25.3 23.6 17.9 21.4
Facility Services 108.2 79.9 71.4 71.4 71.8
Renewable Energy Sources 10.7 4.8 7.3 12.1 11.6
Interdivision net sales -2.7 -2.2 -2.5 -2.3 -3.0
--------------------------------------------------------------------------------
L&T total 207.0 175.9 167.2 161.9 168.3
Operating profit
Environmental Services 6.5 9.7 7.7 5.9 6.5
Industrial Services 2.6 3.6 2.6 -0.2 2.6
Facility Services 3.2 5.1 1.1 -0.3 2.6
Renewable Energy Sources 0.2 0.0 0.2 0.3 0.7
Group administration and other -1.0 -0.8 -1.5 -0.6 -1.8
--------------------------------------------------------------------------------
L&T total 11.4 17.6 10.1 5.1 10.5
Operating margin
Environmental Services 9.7 14.2 11.5 9.4 9.7
Industrial Services 10.8 14.4 10.9 -1.1 11.9
Facility Services 3.0 6.4 1.6 -0.4 3.6
Renewable Energy Sources 2.2 -0.7 2.9 2.4 6.2
--------------------------------------------------------------------------------
L&T total 5.5 10.0 6.0 3.2 6.2
Financial income and expenses, -1.3 0.5 -0.7 0.1 0.1
net
Share of the result of 0.0 0.0 0.0 0.0 0.0
associated companies
Profit before tax 10.1 18.0 9.4 5.2 10.6
MATCHING THE EVA RESULT TO OPERATING PROFIT 1-12/2017 1-12/2016
EUR million
---------------------------------------------------------------------------
Operating profit 44.2 50.5
Invested capital (rolling 12-month quarterly average) 343.2 300.6
Cost calculated on invested capital -23.0 -19.7
---------------------------------------------------------------------------
EVA 21.2 30.7
BUSINESS ACQUISITIONS
LT FM AB
Fair value
EUR million 1-12/201
7
--------------------------------------------------------------------------------
Intangible assets 19.0
Property, plant and equipment 0.1
Investments 0.0
Receivables 32.2
Cash and cash equivalents 0.8
--------------------------------------------------------------------------------
Total assets 52.1
Other liabilities 16.8
Deferred tax liabilities 4.2
--------------------------------------------------------------------------------
Total liabilities 21.0
Net assets acquired 31.2
Total consideration 64.9
Goodwill 33.7
Effect on cash flow
Consideration paid in cash -64.9
Cash and cash equivalents of the acquired company 0.8
--------------------------------------------------------------------------------
Cash flow from investing activities -64.1
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 acquisition price calculations are not yet final.
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.
OTHER BUSINESS ACQUISITIONS, COMBINED
Fair value, total
EUR million 1-12/2017 1-12/2016
--------------------------------------------------------------------------------
Intangible assets 0.6 1.1
Property, plant and equipment 1.0 1.8
Investments 0.0 0.0
Receivables 0.3 1.7
Cash and cash equivalents 1.0 2.3
--------------------------------------------------------------------------------
Total assets 2.9 6.9
Other liabilities 0.3 1.0
Deferred tax liabilities 0.0 0.0
--------------------------------------------------------------------------------
Total liabilities 0.3 1.0
Net assets acquired 2.6 5.9
Total consideration 4.1 8.8
Goodwill 1.5 2.9
Effect on cash flow
Consideration paid in cash -4.1 -8.8
Cash and cash equivalents of the acquired company 1.0 2.3
Paid in the previous year - 3.6
Unpaid 0.2 1.0
--------------------------------------------------------------------------------
Cash flow from investing activities -3.0 -1.8
CHANGES IN INTANGIBLE ASSETS
EUR million 1-12/2017 1-12/2016
------------------------------------------------------------
Carrying amount at beginning of period 143.2 134.9
Business acquisitions 53.0 1.4
Other capital expenditure 7.1 9.2
Disposals 0.0 0.2
Depreciation and impairment -6.6 -4.8
Transfers between items 0.0 2.7
Exchange differences -0.3 -0.4
------------------------------------------------------------
Carrying amount at end of period 196.3 143.2
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 1-12/2017 1-12/2016
------------------------------------------------------------
Carrying amount at beginning of period 156.1 161.5
Business acquisitions 1.1 0.8
Other capital expenditure 32.5 30.2
Disposals -1.4 -0.7
Depreciation and impairment -33.9 -34.0
Transfers between items 0.0 -2.7
Exchange differences -0.3 1.0
------------------------------------------------------------
Carrying amount at end of period 154.1 156.1
CAPITAL COMMITMENTS
EUR million 12/2017 12/2016
------------------------------------------------------------
Intangible assets 0.2 0.1
Property, plant and equipment 1.9 7.2
------------------------------------------------------------
Total 2.1 7.3
FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
EUR million Loans Available- Financial Deriva Carrying Fair
31 and for-sale liabilities tives amounts value
December other financial measured using under by hierarc
2017 receivab assets the effective hedge balance hy
les interest method accoun sheet level
ting item
--------------------------------------------------------------------------------
Non-current
financial
assets
Available-fo 0.6 0.6 3
r-sale
investments
Finance 0.3 0.3 2
lease
receivables
Other 1.8 1.8
receivables
Current
financial
assets
Trade and 128.7 128.7
other
receivables
Finance 0.6 0.6
lease
receivables
Derivative 0.1 0.1
receivables
Cash and 48.1 48.1
cash
equivalents
------------------------------------------------------------------------
Total 179.3 0.6 0.1 180.1
financial
assets
Non-current
financial
liabilities
Borrowings 125.6 125.6 2
Finance 15.3 15.3
lease
payables
Current
financial
liabilities
Borrowings 22.6 22.6
Finance 2.4 2.4
lease
payables
Trade and 80.1 80.1
other
payables
Derivative 0.2 0.2 2
liabilities
------------------------------------------------------------------------
Total 246.0 0.2 246.3
financial
liabilities
The fair values of balance sheet items do not differ
significantly from the carrying values of balance
sheet items.
EUR million Loans Available- Financial Deriva Carrying Fair
31 and for-sale liabilities tives amounts value
December other financial measured using under by hierarc
2016 receivab assets the effective hedge balance hy
les interest method accoun sheet level
ting item
--------------------------------------------------------------------------------
Non-current
financial
assets
Available-fo 0.6 0.6 3
r-sale
investments
Finance 1.2 1.2 2
lease
receivables
Other 1.5 1.5
receivables
Current
financial
assets
Trade and 83.6 83.6
other
receivables
Finance 0.9 0.9
lease
receivables
Derivative 0.3 0.3
receivables
Cash and 28.2 28.2
cash
equivalents
------------------------------------------------------------------------
Total 115.4 0.6 0.3 116.3
financial
assets
Non-current
financial
liabilities
Borrowings 58.3 58.3 2
Finance 5.2 5.2
lease
payables
Other 0.0 0.0
liabilities
Current
financial
liabilities
Borrowings 2.6 2.6
Finance 0.8 0.8
lease
payables
Trade and 71.8 71.8
other
payables
Derivative 0.1 0.1 2
liabilities
------------------------------------------------------------------------
Total 138.6 0.1 138.7
financial
liabilities
The fair values of balance sheet items do not differ
significantly from the carrying values of balance
sheet items.
CONTINGENT LIABILITIES
EUR million 12/2017 12/2016
--------------------------------------------------------------------------------
Securities for own commitments
Mortgages on rights of tenancy 0.1 0.2
Other securities 0.1 0.1
Bank guarantees required for environmental permits 10.6 10.9
Other securities are security deposits.
Operating lease liabilities
EUR million 12/2017 12/2016
--------------------------------------------------------------------------------
Maturity not later than one year 10.5 7.4
Maturity later than one year and not later than five years 15.1 11.4
Maturity later than five years 10.5 4.0
--------------------------------------------------------------------------------
Total 36.1 22.7
Liabilities associated with derivative agreements
Interest rate swaps
EUR million 12/2017 12/2016
--------------------------------------------------------------------------------
Nominal values of interest rate swaps
Maturity not later than one year 1.8 1.8
Maturity later than one year and not later than five years 0.9 2.7
Maturity later than five years 30.0 0.0
--------------------------------------------------------------------------------
Total 32.7 4.5
Fair value -0.3 -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 on the balance
sheet date.
Commodity derivatives
EUR million 12/2017 12/2016
--------------------------------------------------------------------------------
Nominal values of diesel swaps
Maturity not later than one year 1.2 1.3
Maturity later than one year and not later than five years 0.0 0.0
--------------------------------------------------------------------------------
Total 1.2 1.3
Fair value 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
Operating profit excluding non-recurring items:
operating profit +/- non-recurring items
Helsinki, 31 January 2018
LASSILA & TIKANOJA PLC
Board of Directors
Pekka Ojanpää
President and CEO
Additional information:
Pekka Ojanpää, President and CEO, tel. +358 10 636 2810
Tuomas Mäkipeska, CFO, tel. +358 50 596 1616
Lassila & Tikanoja is a service company that is putting the circular economy
into practice. Together with our customers, we keep materials and properties in
productive use for as long as possible and we enhance the use of raw materials
and energy. We help our customers maintain the value of their properties and
materials while protecting the environment. We achieve this by delivering
responsible and sustainable service solutions that make the daily lives of our
customers easier. With operations in Finland, Sweden and Russia, L&T employs
8,500 people. Net sales in 2017 amounted to EUR 712.1 million. L&T is listed on
Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
Major media
www.lassila-tikanoja.fi
Attachment:
https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=661313Lassila & Tikanoja plc: Lassila & Tikanoja Plc: Financial Statements 1 January-31 December 2017
© 2018 GlobeNewswire
Sie erhalten auf FinanzNachrichten.de kostenlose Realtime-Aktienkurse von und
Werbehinweise: Die Billigung des Basisprospekts durch die BaFin ist nicht als ihre Befürwortung der angebotenen Wertpapiere zu verstehen.
Wir empfehlen Interessenten und potenziellen Anlegern den Basisprospekt und die Endgültigen Bedingungen zu lesen,
bevor sie eine Anlageentscheidung treffen, um sich möglichst umfassend zu informieren, insbesondere über die potenziellen
Risiken und Chancen des Wertpapiers. Sie sind im Begriff, ein Produkt zu erwerben, das nicht einfach ist und schwer zu
verstehen sein kann.
