Lassila & Tikanoja plc
Stock exchange release
24 April 2018 10.00 am
Lassila & Tikanoja Plc: Financial key figures adjusted according to the IFRS 9 and IFRS 15 standards and the comparable data from the 2017 financial year in accordance with the new segment reporting structure
Lassila & Tikanoja applies the new IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers standards from 1 January 2018 onwards. Because of the application of the standards, Lassila & Tikanoja publishes the adjusted comparable data from the 2017 financial year. The same accounting policies have been applied to preparing the adjusted comparable data as in the 2017 financial statements with the exception of the application of the IFRS 9 and IFRS 15 standards. The adjusted figures have not been audited.
| Key figures | 1–12/2017 | 1–12/2017 | |
| Earnings per share, EUR | 0.88 | 0.00 | 0.87 |
| Diluted earnings per share, EUR | 0.88 | 0.00 | 0.87 |
| Cash flows from operating activities/share, EUR | 1.61 | 0.00 | 1.61 |
| EVA, EUR million | 21.2 | -0.1 | 21.1 |
| Equity per share, EUR | 5.69 | -0.03 | 5.66 |
| Return on equity, % (ROE) | 15.3 | 0.0 | 15.2 |
| Return on invested capital, % (ROI) | 13.4 | 0.0 | 13.3 |
| Equity ratio, % | 39.3 | -0.7 | 38.6 |
| Gearing, % | 53.9 | 0.3 | 54.2 |
| Net interest-bearing liabilities, EUR million | 117.9 | 0.0 | 117.9 |
| Consolidated income statement | 1–12/2017 | 1–12/2017 | |
| EUR million | |||
| Net sales | 712.1 | -2.5 | 709.5 |
| Operating profit | 44.2 | -0.2 | 44.0 |
| Profit before tax | 42.7 | -0.2 | 42.5 |
| Profit for the period | 33.7 | -0.2 | 33.5 |
| Not reported | Adjustment | Adjusted | |
| Consolidated statement of financial position | 31 Dec 2016 | 01/01/2017 | |
| EUR million | |||
| Property, plant and equipment | 156.1 | 4.1 | 160.3 |
| Deferred tax assets | 5.5 | 0.3 | 5.8 |
| Total equity | 223.0 | -1.1 | 221.9 |
| Trade and other payables | 129.9 | 5.5 | 135.3 |
| Not reported | Adjustment | Adjusted | |
| Consolidated statement of financial position | 31 Dec 2017 | 01/01/2018 | |
| EUR million | |||
| Property, plant and equipment | 154.1 | 6.4 | 160.5 |
| Deferred tax assets | 6.5 | 0.4 | 6.9 |
| Trade and other receivables | 137.6 | -0.4 | 137.1 |
| Total equity | 218.7 | -1.6 | 217.1 |
| Trade and other payables | 147.7 | 8.0 | 155.7 |
IFRS 9
IFRS 9 includes the renewed instructions of the recognition and measurement of financial instruments. This also covers the new accounting model for credit losses that is applied in the definition of impairments recognised from financial assets. The standard’s regulations concerning general hedge accounting have also been renewed. IAS 39’s regulations on recognising and derecognising financial instruments on the balance sheet remain valid. The company has not applied the standard retroactively. The application’s effect on Lassila & Tikanoja’s equity in the opening balance sheet of 1 Jan 2018 was MEUR -0.4.
IFRS 15
IFRS 15 lays down a comprehensive framework for determining when revenue can be recognised and to what extent. 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.
IFRS 15 includes a five-step model for recognising revenue from contracts with customers. According to the standard, 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.
The provision of services accounts for a significant share of Lassila & Tikanoja’s income flows. 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.
The effects of the IFRS 15 application are related to the Environmental Services’ equipment sales (compactors and balers), which represent approximately 0.5% of L&T’s net sales.
In accordance with IAS 8, the company applied the standard retrospectively for each previous reporting period it presents, taking into account the practical expedients allowed by IFRS 15. The application’s effect on Lassila & Tikanoja’s equity in the opening balance sheet of 1 Jan 2018 was MEUR -1.3.
Comparable data from the 2017 financial year in accordance with the new segment reporting structure
On 14 December 2017, Lassila & Tikanoja informed of a change in segment reporting as of 1 January 2018. In the change, the Maintenance of technical systems was separated into an independent reporting segment from the Facility Services division. Lassila & Tikanoja’s new structure consists of five reporting segments: Environmental Services, Industrial Services, Facility Services, Maintenance of Technical Systems and Renewable Energy Sources.
Maintenance of Technical Systems comprises the maintenance of technical systems businesses in Finland and Sweden. President and CEO Pekka Ojanpää will act as the Vice President of the Maintenance of Technical Systems segment. With this change, Lassila & Tikanoja aims to make the most of the growth opportunities in the technical systems business and the synergy between the maintenance of technical systems business operations in Finland and Sweden.
In connection with the segment change, Lassila & Tikanoja organised its group functions again. The following tables present the cumulative comparable data by quarter in accordance with the new reporting structure, including the effects of the IFRS 9 and IFRS 15 standards and reorganisation of the group functions.
| EUR million | 1–3/2017 | 1–6/2017 | 1–9/2017 | 1–12/2017 |
| Net sales | ||||
| Environmental Services | 62.3 | 129.1 | 196.7 | 262.8 |
| Industrial Services | 17.9 | 41.5 | 66.8 | 90.7 |
| Facility Services | 63.3 | 126.5 | 190.5 | 260.6 |
| Maintenance of technical systems | 8.3 | 17.0 | 33.4 | 71.8 |
| Renewable Energy Sources | 12.1 | 19.4 | 24.2 | 34.9 |
| Interdivision net sales | -2.6 | -5.5 | -8.1 | -11.3 |
| L&T total | 161.3 | 328.0 | 503.4 | 709.5 |
| Operating profit | ||||
| Environmental Services | 6.4 | 14.7 | 24.8 | 31.6 |
| Industrial Services | -0.2 | 2.5 | 6.1 | 8.7 |
| Facility Services | -1.0 | -0.5 | 3.8 | 5.2 |
| Maintenance of technical systems | 0.1 | 0.0 | 0.5 | 1.6 |
| Renewable Energy Sources | 0.3 | 0.5 | 0.5 | 0.7 |
| Group administration and other | -0.6 | -2.2 | -3.0 | -3.9 |
| L&T total | 5.0 | 15.1 | 32.6 | 44.0 |
| Operating margin | ||||
| Environmental Services | 10.3 | 11.4 | 12.6 | 12.0 |
| Industrial Services | -1.0 | 6.0 | 9.2 | 9.6 |
| Facility Services | -1.5 | -0.4 | 2.0 | 2.0 |
| Maintenance of technical systems | 1.0 | 0.1 | 1.4 | 2.3 |
| Renewable Energy Sources | 2.4 | 2.6 | 2.0 | 2.0 |
| L&T total | 3.1 | 4.6 | 6.5 | 6.2 |
| OTHER SEGMENT INFORMATION | ||||
| EUR million | 3/2017 | 6/2017 | 9/2017 | 12/2017 |
| Assets | ||||
| Environmental Services | 219.6 | 220.3 | 221.5 | 218.4 |
| Industrial Services | 68.6 | 72.5 | 75.6 | 74.1 |
| Facility Services | 89.1 | 98.0 | 98.6 | 103.5 |
| Maintenance of technical systems | 11.2 | 11.7 | 91.3 | 98.8 |
| Renewable Energy Sources | 24.5 | 21.3 | 23.3 | 22.7 |
| Group administration and other | 12.3 | 1.3 | 1.7 | 2.1 |
| Unallocated assets | 45.9 | 49.9 | 40.7 | 57.8 |
| L&T total | 471.1 | 474.9 | 552.7 | 577.3 |
| Liabilities | ||||
| Environmental Services | 54.1 | 55.4 | 54.3 | 55.3 |
| Industrial Services | 24.1 | 24.6 | 26.4 | 27.4 |
| Facility Services | 43.9 | 48.5 | 45.3 | 52.2 |
| Maintenance of technical systems | 4.2 | 4.6 | 14.9 | 15.9 |
| Renewable Energy Sources | 9.6 | 5.9 | 7.4 | 7.6 |
| Group administration and other | 10.0 | 2.1 | 3.7 | 5.3 |
| Unallocated liabilities | 134.3 | 135.7 | 190.4 | 196.2 |
| L&T total | 280.2 | 277.0 | 342.4 | 359.9 |
| EUR million | 1–3/2017 | 1–6/2017 | 1–9/2017 | 1–12/2017 |
| Capital expenditure | ||||
| Environmental Services | 6.2 | 12.8 | 19.7 | 24.8 |
| Industrial Services | 1.9 | 3.5 | 5.6 | 9.0 |
| Facility Services | 2.1 | 4.9 | 6.4 | 10.1 |
| Maintenance of technical systems | 0.0 | 0.0 | 65.0 | 68.6 |
| Renewable Energy Sources | 0.1 | 0.1 | 0.2 | 0.2 |
| Group administration and other | 0.5 | 0.5 | 0.4 | 0.4 |
| L&T total | 10.9 | 21.9 | 97.3 | 113.2 |
| Depreciation and amortisation | ||||
| Environmental Services | 4.9 | 9.9 | 14.9 | 19.9 |
| Industrial Services | 1.7 | 3.5 | 5.3 | 7.3 |
| Facility Services | 2.9 | 5.8 | 8.6 | 11.3 |
| Maintenance of technical systems | 0.4 | 0.7 | 1.1 | 2.3 |
| Renewable Energy Sources | 0.1 | 0.2 | 0.2 | 0.3 |
| Group administration and other | 0.0 | 0.0 | 0.0 | 0.0 |
| L&T total | 10.0 | 20.0 | 30.1 | 41.1 |
LASSILA & TIKANOJA PLC
Pekka Ojanpää
President and CEO
Additional information:
Tuomas Mäkipeska, CFO, tel. +358 (0)50 596 1616
Lassila & Tikanoja is a service company that is putting the circular economy into practice. Together with our customers, we keep materials, properties and factories in productive use for as long as possible and 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. L&T operates in Finland, Sweden and Russia. Net sales of L&T in 2017 amounted to EUR 709.5 million and the company employs 8,700 persons. L&T is listed on Nasdaq Helsinki.
Distribution:
Nasdaq Helsinki
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