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Lassila & Tikanoja plc Financial Statements Release 1 January - 31 December 2009

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LASSILA & TIKANOJA PLC  FINANCIAL STATEMENTS RELEASE  10 February 2010 8.00 am  

LASSILA & TIKANOJA PLC FINANCIAL STATEMENTS RELEASE 1 JANUARY - 31 DECEMBER 2009

- Net sales for the final quarter EUR 148.0 million (EUR 153.1 million);        
operating profit EUR 8.5 million (EUR 4.9 million); operating profit excluding  
non-recurring and imputed items EUR 8.7 million (EUR 8.6 million); earnings per 
share EUR 0.14 (EUR 0.04)                                                       
- Full-year net sales EUR 582.3 million (EUR 606.0 million); operating profit   
EUR 50.3 million (EUR 55.5 million); operating profit excluding non-recurring   
and imputed items EUR 51.3 million (EUR 45.0 million); earnings per share EUR   
0.85 (EUR 1.03)                                                                 
- Net sales and operating profit excluding non-recurring items in 2010 are      
expected to remain at the 2009 level.                                           
- A dividend of EUR 0.55 per share is proposed.                                 


GROUP NET SALES AND FINANCIAL PERFORMANCE                                       

October-December                                                                
Lassila & Tikanoja's net sales for the final quarter totalled EUR 148.0 million 
(EUR 153.1 million), showing a decrease of 3.3% from the previous year.         
Operating profit was EUR 8.5 million (EUR 4.9 million), representing 5.7% (3.2%)
of net sales. Operating profit excluding non-recurring and imputed items was EUR
8.7 million (EUR 8.6 million). Earnings per share were EUR 0.14 (EUR 0.04).     

Net sales in the fourth quarter fell due to the decrease in waste and secondary 
raw material volumes.  Profitability remained at the previous year's level      
thanks to production efficiency improvement measures. Non-recurring             
restructuring expenses of EUR 0.2 million were recorded for the fourth quarter  
(impact of non-recurring items in the comparison period was EUR -3.7 million).  

Year 2009                                                                       
Full-year net sales amounted to EUR 582.3 million (EUR 606.0 million); a        
decrease of 3.9%. Operating profit was EUR 50.3 million (EUR 55.5 million),     
representing 8.6% (9.2%) of net sales. Operating profit excluding non-recurring 
and imputed items was EUR 51.3 million (EUR 45.0 million). Earnings per share   
were EUR 0.85 (EUR 1.03).                                                       

The decrease in net sales could be primarily attributed to the weak demand for  
L&T Biowatti's wood-based fuels and the lower waste and transport volumes. The  
prices of secondary raw materials and their demand remained low in the first    
half, but showed slight improvement towards the year-end. The net sales of      
Property and Office Support Services and Industrial Services almost reached     
their previous year's level even though the sustained economic uncertainty      
hampered the sales of additional services.                                      

Operating profit excluding non-recurring and imputed items saw a marked         
improvement thanks to efficiency enhancement measures. Operating profit was     
taxed by the non-recurring items totalling EUR 1.0 million. The completion of   
the joint venture L&T Recoil Oy's production plant was delayed, which resulted  
in considerable loss. In 2008, operating profit was boosted by the capital gain 
from the sale of Ekokem shares, among other things.                             

	                                                                               
Financial summary                                                               
--------------------------------------------------------------------------------
|                            | 10-1 | 10-1 | Change  | 1-12/ | 1-12/ |  Change |
|                            |   2/ |   2/ |       % |  2009 |  2008 |       % |
|                            | 2009 | 2008 |         |       |       |         |
--------------------------------------------------------------------------------
| Net sales, EUR million     | 148. | 153. |    -3.3 | 582.3 | 606.0 |    -3.9 |
|                            |    0 |    1 |         |       |       |         |
--------------------------------------------------------------------------------
| Operating profit excluding |  8.7 |  8.6 |     1.2 |  51.3 |  45.0 |    14.0 |
| non-recurring and imputed  |      |      |         |       |       |         |
| items, EUR million*        |      |      |         |       |       |         |
--------------------------------------------------------------------------------
| Operating profit, EUR      |  8.5 |  4.9 |    74.2 |  50.3 |  55.5 |    -9.4 |
| million                    |      |      |         |       |       |         |
--------------------------------------------------------------------------------
| Operating margin, %        |  5.7 |  3.2 |         |   8.6 |   9.2 |         |
--------------------------------------------------------------------------------
| Profit before tax, EUR     |  7.4 |  3.5 |         |  45.0 |  50.7 |   -11.2 |
| million                    |      |      |         |       |       |         |
--------------------------------------------------------------------------------
| Earnings per share, EUR    | 0.14 | 0.04 |         |  0.85 |  1.03 |   -17.5 |
--------------------------------------------------------------------------------
| Dividend per share, EUR    |      |      |         | 0.55* |  0.55 |         |
|                            |      |      |         |     * |       |         |
--------------------------------------------------------------------------------
| EVA, EUR million           | -0.1 | -3.3 |    97.0 |  16.5 |  25.0 |   -34.0 |
--------------------------------------------------------------------------------
* Breakdown of operating profit excluding non-recurring and imputed items is    
presented below the division reviews.                                           
** Proposal by the Board of Directors                                           


NET SALES AND FINANCIAL PERFORMANCE BY DIVISION                                 

Environmental Services                                                          

October-December                                                                
The net sales of Environmental Services (waste management, recycling services,  
L&T Biowatti, environmental products) in the final quarter decreased by 3.7% to 
EUR 71.5 million (EUR 74.2 million). Operating profit was EUR 6.5 million (EUR  
6.0 million), and operating profit excluding non-recurring and imputed items was
EUR 6.5 million (EUR 6.0 million).                                              

The net sales of waste management shrank particularly due to the falling        
construction waste volumes. However, operating profit remained at the comparison
period's level. In the recycling services business, net sales declined due to   
shrinking volumes of raw materials but profitability improved thanks to the     
rising prices of secondary raw materials and a recovery in their demand.        
Construction of additional capacity at the Kerava recycling plant continued.    

L&T Biowatti's net sales remained at the previous year's level. Although the    
cold weather in December boosted the demand for fuels, low operating rates in   
the industry and the low wholesale price of electricity continued to hold back  
demand. The inexpensive price level of emission rights and fossil fuels         
undermined the competitiveness of wood-based fuels. The procurement of wood raw 
material for future heating seasons was more successful than expected.          

The profitability of the Environmental Services division's international        
operations improved despite difficult market conditions.                        

Year 2009                                                                       
The full-year net sales of the Environmental Services division shrank by 6.8% to
EUR 279.8 million (EUR 300.1 million). Operating profit was EUR 31.7 million    
(EUR 32.3 million), and operating profit excluding non-recurring and imputed    
items was EUR 32.9 million (EUR 32.3 million).                                  

Net sales from waste management fell somewhat due to the reduction in waste     
volumes. The slowdown in new construction reduced construction waste volumes as 
expected, but the increased activity in renovation operations helped offset the 
decline.                                                                        

The market prices of secondary raw materials (plastics, fibres, metals) and     
their demand were low in the first half, but showed slight improvement in the   
second half. The first stage of the Kerava recycling plant investment programme 
ended in June and the new recycled timber unit was brought on line. The second  
stage of the investment was downsized, and it will involve the construction of a
combined plant that will be able to handle both construction waste and trade and
industrial waste. The investment will be completed in autumn 2010, which will   
significantly raise the recovery rate of the waste processed at the Kerava      
plant.                                                                          

The demand for biofuels supplied by L&T Biowatti decreased sharply as a result  
of the lower wholesale price of electricity and lower operating rates in the    
forest industry. The low prices of fossil fuels and emission rights eroded the  
competitiveness of wood-based fuels against coal, peat and oil. The product     
line's profitability weakened significantly and the result was negative.        

A forestry service organisation focusing on energy wood procurement launched    
operations in January and was able to exceed its procurement targets, which     
resulted in a significant increase in raw material stocks.  The Luumäki pellet  
plant was closed in May.                                                        

In April, waste management operations in Russia were extended to cover the city 
of Noginsk. The construction of a recycling plant in Dubna began with completion
scheduled for the first half of 2010. In Latvia, the growing uncertainty of the 
country's economy posed challenges for business development, but at the same    
time it has improved the availability of labour and lowered labour costs.       

Net sales for environmental products declined but profitability remained        
healthy.                                                                        

Property and Office Support Services                                            

October-December                                                                
The net sales of Property and Office Support Services (property maintenance,    
cleaning services) amounted to EUR 61.4 million (EUR 62.9 million) in the final 
quarter. The operating profit grew to EUR 2.8 million (EUR -1.9 million), and   
operating profit excluding non-recurring and imputed items was EUR 2.9 million  
(EUR 2.3 million).                                                              

Net sales from Finnish operations declined slightly from the previous year.     
Despite the weaker market conditions, profitability improved as a result of     
production efficiency boosting measures. Contracts were successfully renewed in 
both product lines.                                                             

Net sales from international operations declined primarily as a result of the   
weakening of the Swedish krona and the Russian rouble. Although profitability   
improved, overall result was slightly negative due to the losses from Swedish   
operations.                                                                     

Year 2009                                                                       
The full-year net sales of Property and Office Support Services totalled EUR    
243.1 million (EUR 243.2 million). At EUR 17.7 million (EUR 5.9 million),       
operating profit showed a significant improvement. Operating profit excluding   
non-recurring and imputed items was EUR 18.1 million (EUR 10.1 million).        

Net sales remained at the 2008 level and additional services sold well despite  
the economic uncertainties. A few sizeable damage repair projects were carried  
out in the first half and workflow remained constant throughout the year. New   
partnership agreements were signed with insurance companies.                    

The sector's profitability showed a considerable improvement as a result of     
production efficiency boosting measures. Prolonged economic uncertainty resulted
in lower employee turnover, particularly in cleaning services, which helped     
significantly raise production efficiency.                                      

The L&T® EcoMaintenance concept was launched in the property maintenance        
business to reduce the energy consumption in properties.                        

Loss from international operations decreased. The Latvian and Russian operations
recorded a positive result even though customers have downsized their services  
programmes due to the weak economic conditions, particularly in Latvia. In      
Sweden, the reorganisation programme proceeded as planned but operations        
continued to show a loss. In March, the Russian cleaning services were awarded a
certificate for compliance with the ISO 9001 quality standards.                 


Industrial Services                                                             

October-December                                                                
The fourth quarter net sales of Industrial Services (hazardous waste management,
industrial solutions, wastewater services, L&T Recoil) were down by 4.6% to EUR 
17.2 million (EUR 18.1 million). Operating profit was EUR 0.0 million (EUR 1.5  
million), and operating profit excluding non-recurring and imputed items was EUR
0.0 million (EUR 1.0 million).                                                  

The division's net sales fell due to the sustained low operating rates in the   
industry and a decrease in hazardous waste volumes. Profitability of the        
hazardous waste management and industrial solutions business was boosted by     
higher recovery rates and material efficiency solutions. Costs arising from the 
production reorganisation of waste water services eroded the product line's     
profitability.                                                                  

The joint venture L&T Recoil's re-refinery for used lubricating oil reached a   
production stage towards the year-end, but by the end of the year production had
not yet stabilised. Delays in production start-up taxed the division's          
performance considerably.                                                       

Year 2009                                                                       
Full-year net sales for Industrial Services stood at EUR 67.4 million (EUR 69.0 
million). Operating profit was EUR 3.4 million (EUR 5.2 million), and operating 
profit excluding non-recurring and imputed items was EUR 3.2 million (EUR 4.9   
million).                                                                       

The low operating rates in the industry had the expected impact on Industrial   
Services throughout the year.  Hazardous waste volumes showed a marked decrease 
and maintenance service volumes decreased as the economic uncertainty prolonged.
Rapid fluctuation in demand posed a challenge to production adjustment measures.
The low demand for recovered fuel picked up to some extent towards the year-end.

Profitability in hazardous waste services and industrial solutions improved,    
thanks to successful production efficiency improvement measures. In addition,   
large individual projects were carried out in the first half.                   

The production start-up phase of L&T Recoil's re-refinery for used lubricating  
oil was delayed from the planned schedule, and the plant was unable to meet the 
year's production targets. The joint venture's losses had a major negative      
impact on the entire division's profitability.                                  


BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING AND IMPUTED ITEMS         

--------------------------------------------------------------------------------
| EUR million                                | 10-12 | 10-12 |  1-12/ |  1-12/ |
|                                            |     / |     / |   2009 |   2008 |
|                                            |  2009 |  2008 |        |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit                           |   8.5 |   4.9 |   50.3 |   55.5 |
--------------------------------------------------------------------------------
| Non-recurring items                        |       |       |        |        |
--------------------------------------------------------------------------------
| Impairment loss on goodwill of business in |       |   3.1 |        |    3.1 |
| Sweden                                     |       |       |        |        |
--------------------------------------------------------------------------------
| Discontinuation of soil washing services   |       |   2.6 |   -0.4 |    2.6 |
--------------------------------------------------------------------------------
| Loss on sale of business in Norway         |       |   1.1 |        |    1.1 |
--------------------------------------------------------------------------------
| Gain on sale of the shares of Ekokem       |       |       |        |  -14.3 |
--------------------------------------------------------------------------------
| Oil derivatives                            |       |  -3.1 |        |   -3.0 |
--------------------------------------------------------------------------------
| Restructuring expenses                     |   0.2 |       |    1.6 |        |
--------------------------------------------------------------------------------
| Discontinuation of wood pellet production  |       |       |    0.3 |        |
| in Luumäki                                 |       |       |        |        |
--------------------------------------------------------------------------------
| Refund of supplementary insurance fund of  |       |       |   -0.5 |        |
| former Lassila & Tikanoja                  |       |       |        |        |
--------------------------------------------------------------------------------
| Operating profit excluding non-recurring   |   8.7 |   8.6 |   51.3 |   45.0 |
| and imputed items                          |       |       |        |        |
--------------------------------------------------------------------------------


FINANCING                                                                       

At the end of the year, interest-bearing liabilities amounted to EUR 3.2 million
less than a year earlier. Net interest-bearing liabilities, totalling EUR 116.3 
million, decreased by EUR 4.3 million.                                          
The amount of net finance costs in the final quarter was below that of the      
comparison period by EUR 0.3 million while in January-December the amount       
exceeded that of the comparison period by EUR 0.4 million. Interest expenses    
decreased by EUR 0.4 million in the fourth quarter and by EUR 0.2 million in    
January-December. The decrease resulted from the decline in the interest rate   
level and the decrease in the interest-bearing liabilities. Net finance costs   
were 0.9% (0.8%) of net sales and 10.4% (8.7%) of operating profit.             

In 2009, a total of EUR -0.3 million (EUR -1.0 million) arising from the changes
in the fair values of interest rate swaps to which hedge accounting under IAS 39
is applied was recognised in other comprehensive income, after tax.             

In 2009, new long-term loans totalling EUR 24.0 million (EUR 47.0 million) were 
drawn and a total of EUR 19.0 million of short-term loans were converted into   
long-term loans. EUR 29.2 million (EUR 15.6 million) were repaid. At 31         
December, the weighted average of effective interest rates of long-term loans   
was 2.93% (4.61%). At the end of the year, the amount of liquid assets was EUR  
27.6 million (EUR 26.5 million). A committed limit of EUR 15.0 million was not  
in use as at the end of the year 2008. EUR 15.5 million of committed limits were
in use at the end of the year 2008.                                             
The equity ratio was 44.1% (43.2%) and the gearing rate 53.5 (58.8). Cash flows 
from operating activities amounted to EUR 66.2 million (EUR 70.4 million). EUR  
12.0 million were tied up in the working capital (EUR 2.2 million were          
released). The increase in the working capital was mainly attributable to       
increase in the inventories of L&T Biowatti.                                    


DIVIDEND                                                                        

The Annual General Meeting held on 24 March 2009 resolved on a dividend of EUR  
0.55 per share. The dividend, totalling EUR 21.3 million, was paid to the       
shareholders on 3 April 2009.                                                   


CAPITAL EXPENDITURE                                                             

Capital expenditure totalled EUR 44.9 million (EUR 84.2 million). The largest   
construction projects were L&T Recoil re-refinery and the extension of the      
Kerava recycling plant.                                                         

In the third quarter, the property maintenance services business of Valkeakosken
Talohuolto Ky was acquired into Property and Office Support Services. In the    
fourth quarter, the waste collection operations of Kuljetusliike Veli-Pekka     
Hiltunen Oy and the business operations of Raahen Kuljetus Maunula Ky were      
acquired into Environmental Services. The business acquisitions totalled EUR 1.7
million and the combined annual net sales of the acquired businesses totalled   
EUR 2.1 million.                                                                

In the second quarter, the business of Environmental Services' unit in Virrat   
was sold.                                                                       


PERSONNEL                                                                       

In 2009, the average number of employees converted into full-time equivalents   
was 8,113 (8,363). At the year end, the total number of full-time and part-time 
employees was 8,743 (9,490). Of them 6,762 (7,269) people worked in Finland and 
1,981 (2,221) people in other countries.                                        


PROPOSAL FOR THE DISTRIBUTION OF PROFIT                                         

According to the financial statements, Lassila & Tikanoja plc's distributable   
assets amount to EUR 55,348,207.26, of which EUR 27,939,056.68 constitutes      
profit for the financial period. There were no substantial changes in the       
financial standing of the company after the end of the financial 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 General Meeting of Shareholders that distributable assets be used as        
follows:                                                                        

A dividend of EUR 0.55 will be paid on each share. On the day when the          
distribution of profit was proposed, the number of shares conferring entitlement
to receive dividend totalled 38,768,874 shares, on which the total dividend     
payment would be EUR 21,322,880.70. No dividend shall be paid on shares held by 
the company on the dividend payment record date.                                

In accordance with the resolution of the Board of Directors, the record date is 
7 April 2010. The Board of Directors proposes to the Annual General Meeting to  
be held on 31 March 2010 that the dividend be paid on 14 April 2010.            

Earnings per share amounted to EUR 0.85. The proposed dividend is 64.4% of the  
earnings per share.                                                             


NEW DIVISIONS                                                                   

As of 1 June 2009, Lassila & Tikanoja's business operations were regrouped into 
three divisions: Environmental Services, Property and Office Support Services   
and Renewable Energy Sources (L&T Biowatti). The Industrial Services division   
was combined with the Environmental Services division.                          

By the regrouping L&T aims at a more cost-efficient and customer orientated     
operating model. The combining of the organisations of Environmental Services   
and Industrial Services allows more efficient use of resources.                 

The company's internal reporting, as well as the segments reported externally,  
will be changed to reflect the new divisions at the beginning of 2010. In 2009, 
the financial reporting segments are Environmental Services, Property and Office
Support Services and Industrial Services.                                       


SHARE AND SHARE CAPITAL                                                         

Traded volume and price                                                         
The volume of trading in Lassila & Tikanoja plc shares on NASDAQ OMX Helsinki in
2009 was 10,089,598, which is 25.9% (45.0%) of the average number of outstanding
shares. The value of trading was EUR 127.2 million (EUR 287.9 million). The     
trading price varied between EUR 9.16 and EUR 17.19. The closing price was EUR  
15.99. During the review period the company repurchased 30,000 own shares. The  
market capitalisation was EUR 619.9 million (EUR 426.8 million) at the end of   
the period.                                                                     

Share capital and number of shares                                              
The company's registered share capital amounts to EUR 19,399,437, and the number
of outstanding shares to 38,768,874 shares. In January-December, the average    
number of shares excluding the shares held by the company totalled 38,780,589.  

Share option scheme 2005                                                        
In 2005, 600,000 share option rights were issued, each entitling its holder to  
subscribe for one share of Lassila & Tikanoja plc. In the beginning of the      
exercise period, 32 key persons held 176,000 2005B options. 37 key persons hold 
200,000 2005C options. L&T Advance Oy, a wholly-owned subsidiary of Lassila &   
Tikanoja plc, holds 24,000 2005B options and 30,000 2005C options and these     
options will not be exercised.                                                  

The exercise price for the 2005B options is EUR 16.98 and for 2005C options EUR 
26.87. The exercise period for 2005B options is 3 November 2008 to 31 May 2010, 
and for 2005C options 2 November 2009 to 31 May 2011. The exercise period for   
the 2005A options ended on 29 May 2009.                                         

As a result of the exercise of the outstanding 2005 share options, the number of
shares may increase by a maximum of 376,000 new shares, which is 1.0% of the    
current number of shares. The 2005B options have been listed on NASDAQ OMX      
Helsinki since 2 January 2009 and 2005C options since 2 November 2009.          

Share option scheme 2008                                                        
In 2008, 230,000 share option rights were issued, each entitling its holder to  
subscribe for one share of Lassila & Tikanoja plc. 37 key persons hold 196,000  
options and L&T Advance Oy 34,000 options.                                      
The exercise price for the 2008 options is EUR 16.27. The exercise price of the 
share options shall, as per the dividend record date, be reduced by the amount  
of dividend which exceeds 70% of the profit per share for the financial period  
to which the dividend applies. However, only such dividends whose distribution  
has been agreed upon after the option pricing period and which have been        
distributed prior to the share subscription are deducted from the subscription  
price. The exercise price shall, however, always amount to at least EUR 0.01.   
The exercise period will be from 1 November 2010 to 31 May 2012.                
As a result of                                                                  
the exercise of the outstanding 2008 share options, the number of shares may    
increase by a maximum of 196,000 new shares, which is 0.5% of the current number
of shares.                                                                      

Share-based incentive programme                                                 
Lassila & Tikanoja plc's Board of Directors decided on 24 March 2009 on a       
share-based incentive programme. The programme includes three earnings periods  
one year each, of which the first one began on 1 January 2009 and the last one  
ends on 31 December 2011. The basis for the determination of the reward is      
decided annually. Potential rewards to be paid for the year 2009 will be based  
on the EVA result of Lassila & Tikanoja group. Potential rewards will be paid   
partly as shares and partly in cash. The proportion paid in cash will cover     
taxes arising from the reward. In the starting phase the programme covered 28   
persons.                                                                        

A maximum total of 180,000 Lassila & Tikanoja plc shares may be paid out on the 
basis of the programme. The shares will be obtained in public trading, and      
therefore the incentive programme will have no diluting effect on the share     
value.                                                                          

Shareholders                                                                    
At the end of the financial period, the company had 7,595 (6,135) shareholders. 
Nominee-registered holdings accounted for 9.2% (9.9%) of the total number of    
shares.                                                                         

Notifications on major holdings                                                 
On 30 April 2009, Ilmarinen Mutual Pension Insurance Company announced that its 
holding of the shares and votes in Lassila & Tikanoja plc had fallen to 7.6%.   

On 12 May 2009, OP-Pohjola Group announced that its holding of the shares and   
votes in Lassila & Tikanoja plc had risen to 5.2%.                              

On 7 August 2009, OP-Pohjola Group announced that its holding of the shares and 
votes in Lassila & Tikanoja plc had fallen to 4.7%.                             

Authorisation for the Board of Directors                                        
The Annual General Meeting held on 24 March 2009 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 and on the issuance of these 
shares. Shares will be repurchased otherwise than in proportion to the existing 
shareholdings of the company's shareholders in public trading on the NASDAQ OMX 
Helsinki Ltd at the market price quoted at the time of the repurchase.          

The Board of Directors is authorised to repurchase and transfer a maximum of    
500,000 company shares, which is 1.3% of the total number of shares. The        
repurchase authorisation will be effective for 18 months and the share issue    
authorisation for four years.                                                   

The Board of Directors is not authorised to launch a convertible bond or share  
option rights.                                                                  

Own shares                                                                      
At the end of the period Lassila & Tikanoja plc held 30,000 of its own shares   
which represent 0.1% of shares and votes. The shares were repurchased, based on 
the authorisation given by the Annual General Meeting, on 20-26 May 2009 at a   
total price of EUR 356 thousand.                                                


RESOLUTIONS BY THE ANNUAL GENERAL MEETING                                       

The Annual General Meeting of Lassila & Tikanoja plc, which was held on 24 March
2009, adopted the financial statements for the financial year 2008 and released 
the members of the Board of Directors and the President and CEO from liability. 
The AGM resolved that a dividend of EUR 0.55, a total of EUR 21.3 million, as   
proposed by the Board of Directors, be paid for the financial year 2008. The    
dividend payment date was resolved to be 3 April 2009.                          

The Annual General Meeting confirmed the number of the members of the Board of  
Directors six. The following Board members were re-elected to the Board until   
the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Matti Kavetvuo, 
Juhani Lassila and Juhani Maijala. Hille Korhonen was elected as a new member   
for the same term.                                                              

PricewaterhouseCoopers Oy, Authorised Public Accountants, were elected auditors 
with Heikki Lassila, Authorised Public Accountant, acting as Principal Auditor. 

The Annual General Meeting approved the Board's proposals to amend article 11 of
the Articles of Association and to authorise the Board of Directors to          
repurchase the company's own shares and to issue shares.                        

The resolutions of the Annual General Meeting were announced in more detail in a
stock exchange release on 25 March 2009.                                        


BOARD OF DIRECTORS                                                              

The members of the Board of Directors are Heikki Bergholm, Eero Hautaniemi,     
Matti Kavetvuo, Hille Korhonen, Juhani Lassila and Juhani Maijala. In its       
constitutive meeting the Board re-elected Juhani Maijala as Chairman of the     
Board and Juhani Lassila as Vice Chairman. The Board decided to establish an    
audit committee. From among its members, the Board elected Juhani Lassila as    
Chairman and Eero Hautaniemi and Hille Korhonen as members of the audit         
committee.                                                                      


SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 7, CHAPTER 2 OF THE      
SECURITIES MARKETS ACT                                                          

In a release published on 15 January 2009, the company announced that it        
recognises an impairment loss of EUR 2.7 million for the goodwill of business   
operations in Sweden due to weaker market outlook.                              

In a release published on 23 February 2009, the company announced that it has   
concluded the statutory employer-employee negotiations that began in Finland on 
29 December 2008. As a result of these negotiations, the reduction notice       
applies to 160 persons. The reductions form part of the measures currently      
undertaken in order to adjust the organisation and business activities to       
changes in the market situation.                                                

In a release published on 25 March 2009, the company announced that Lassila &   
Tikanoja plc's Board of Directors decided on a share-based incentive programme. 
More details of the programme are given above in the chapter Share and share    
capital.                                                                        

In a release published on 12 May 2009, the company announced that as of 1 June  
2009 its business operations will be regrouped into three divisions:            
Environmental Services, Property and Office Support Services and Renewable      
Energy Sources (L&T Biowatti). The Industrial Services division will be combined
to the Environmental Services division. The company's internal reporting, as    
well as the segments reported externally, will be changed to reflect the new    
divisions at the beginning of 2010.                                             

In a release published on 4 September 2009, the company announced that as of    
that date Director Arto Nivalainen leaves the Group Executive team of Lassila & 
Tikanoja plc. He will continue in the company until 31 August 2010. Nivalainen  
is responsible for certain development and investment projects and continues as 
a member of the Board of Directors of L&T Biowatti Oy. L&T's Group Executives   
are: Jorma Mikkonen, Vice President, Environmental Services; Anna-Maija         
Apajalahti, Vice President, Property and Office Support Services; Laura Aarnio, 
Accounting Director; Kimmo Huhtimo, Director responsible for product and process
development, marketing communications and Contact Centre; Inkeri Puputti, HR    
Director; Ville Rantala, CFO.                                                   

In a release published on 27 October 2009, the company announced that Tomi Salo 
has been appointed Managing Director of L&T Biowatti Oy and Group Executive of  
Lassila & Tikanoja plc as of 1 December 2009. Salo is responsible for the       
Renewable Energy Sources division and he reports to Jari Sarjo, President and   
CEO.                                                                            

In a release published on 1 December 2009, the company announced that it will   
start statutory employer-employee negotiations in order to improve efficiency.  
On 25 January 2010 the company announced that it had concluded the statutory    
employer-employee negotiations. As a result of these negotiations, L&T will     
reduce 110 salaried employee positions in Finland. The reductions will be       
realised partly through natural attrition. The number of redundancies is        
expected to be 95 at the maximum, consisting of 80 salaried employees and 15    
senior salaried employees.                                                      


NEAR-TERM UNCERTAINTIES                                                         

Sustained economic uncertainty may reduce transport and recycling volumes and   
the number of assignments. The market price and demand instability of secondary 
raw materials could have a negative effect on the profitability of recycling    
services. Rapid fluctuations in demand for services purchased by the industry   
and the low operating rates in the industry may hamper the planning and         
implementation of work.                                                         

If the operating rate target set for L&T Recoil's production is not reached,    
this will have a negative impact on the Environmental Services division's       
performance. Performance will also be adversely affected by the potential fall  
in the price of crude oil because the price of base oil follows crude oil price 
developments with a slight delay.                                               

Low prices of fossil fuels such as coal, oil and peat may undermine the         
competitiveness of L&T Biowatti's wood-based fuels. Similarly, the low wholesale
price of electricity and low price of emission rights will weaken demand.       

The intensifying competition environment and changes in legislation in Latvia   
may prove detrimental to the profitability the waste management business.       

More detailed information on L&T's risks and risk management is available in the
Annual Report in the Board of Directors' Report and in the consolidated         
financial statements.                                                           


PROSPECTS FOR THE YEAR 2010                                                     

In the Environmental Services division, waste material transport and recycling  
volumes are expected to remain unchanged. The demand and market prices of       
secondary raw materials are expected to recover slowly. The current operating   
rates in the industry will result in low hazardous waste volumes and demand for 
maintenance services. Production at L&T Recoil's re-refinery continues to be    
unstable. Its operating rate will have a major impact on the division's         
profitability.                                                                  
                                                                                
The market for Property and Office Support Services is expected to remain       
unchanged or weaken. Customers must follow tight cost control, which is assumed 
to increase competitive bidding and reduce orders for additional services.      

The demand for L&T Biowatti's wood-based fuels is expected to remain moderate   
due to low operating rates in the industry and the low wholesale price of       
electricity. Furthermore, the low price of emission rights will undermine the   
competitiveness of wood-based fuels.                                            

Net sales and operating profit excluding non-recurring items in 2010 are        
expected to remain at the 2009 level.                                           


CONDENSED FINANCIAL STATEMENTS 1 JANUARY-31 DECEMBER 2009                       

CONSOLIDATED INCOME STATEMENT                                                   

--------------------------------------------------------------------------------
| EUR 1000                       |  10-12/ |     10-12/ |     1-12/ |    1-12/ |
|                                |    2009 |       2008 |      2009 |     2008 |
--------------------------------------------------------------------------------
|                                |         |            |           |          |
--------------------------------------------------------------------------------
| Net sales                      | 148 041 |    153 058 |   582 306 |  605 996 |
--------------------------------------------------------------------------------
| Cost of sales                  |    -132 |   -136 925 |  -505 699 | -533 681 |
|                                |     487 |            |           |          |
--------------------------------------------------------------------------------
| Gross profit                   |  15 554 |     16 133 |    76 607 |   72 315 |
--------------------------------------------------------------------------------
| Other operating income         |     429 |      3 820 |     2 425 |   21 708 |
--------------------------------------------------------------------------------
| Selling and marketing costs    |  -3 842 |     -4 517 |   -14 636 |  -16 228 |
--------------------------------------------------------------------------------
| Administrative expenses        |  -3 167 |     -2 873 |   -11 705 |  -12 105 |
--------------------------------------------------------------------------------
| Other operating expenses       |    -470 |     -4 592 |    -2 427 |   -7 102 |
--------------------------------------------------------------------------------
| Goodwill impairment            |         |     -3 090 |           |   -3 090 |
--------------------------------------------------------------------------------
| Operating profit               |   8 504 |      4 881 |    50 264 |   55 498 |
--------------------------------------------------------------------------------
| Finance income                 |     224 |        742 |     1 290 |    1 931 |
--------------------------------------------------------------------------------
| Finance costs                  |  -1 302 |     -2 112 |    -6 528 |   -6 737 |
--------------------------------------------------------------------------------
| Profit before tax              |   7 426 |      3 511 |    45 026 |   50 692 |
--------------------------------------------------------------------------------
| Income tax expense             |  -1 917 |     -1 979 |   -11 881 |  -10 724 |
--------------------------------------------------------------------------------
| Profit for the period          |   5 509 |      1 532 |    33 145 |   39 968 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to:               |         |            |           |          |
--------------------------------------------------------------------------------
| Equity holders of the company  |   5 511 |      1 537 |    33 140 |   39 969 |
--------------------------------------------------------------------------------
| Minority interest              |      -2 |         -5 |         5 |       -1 |
--------------------------------------------------------------------------------


Earnings per share for profit attributable to the equity holders of the company:
--------------------------------------------------------------------------------
| Basic earnings per share, EUR   |   0.14 |      0.04 |      0.85 |      1.03 |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR |   0.14 |      0.04 |      0.85 |      1.03 |
--------------------------------------------------------------------------------



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  

--------------------------------------------------------------------------------
| EUR 1000                        |   10-12/ |   10-12/ |    1-12/ |     1-12/ |
|                                 |     2009 |     2008 |     2009 |      2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period           |    5 509 |    1 532 |   33 145 |    39 968 |
--------------------------------------------------------------------------------
| Other comprehensive income,     |          |          |          |           |
| after tax                       |          |          |          |           |
--------------------------------------------------------------------------------
| Hedging reserve, change in fair |       98 |     -926 |     -343 |      -972 |
| value                           |          |          |          |           |
--------------------------------------------------------------------------------
| Current available-for-sale      |          |          |          |           |
| investments                     |          |          |          |           |
--------------------------------------------------------------------------------
| Gains in the period             |        3 |       24 |      -21 |        29 |
--------------------------------------------------------------------------------
| Reclassification adjustments    |          |          |          |   -14 238 |
--------------------------------------------------------------------------------
| Current available-for-sale      |        3 |       24 |      -21 |   -14 209 |
| investments                     |          |          |          |           |
--------------------------------------------------------------------------------
| Currency translation            |      200 |   -1 327 |      324 |    -1 862 |
| differences                     |          |          |          |           |
--------------------------------------------------------------------------------
| Other comprehensive income,     |      301 |   -2 229 |      -40 |   -17 043 |
| after tax                       |          |          |          |           |
--------------------------------------------------------------------------------
| Total comprehensive income,     |    5 810 |     -697 |   33 105 |    22 925 |
| after tax                       |          |          |          |           |
--------------------------------------------------------------------------------
| Attributable to:                           |          |          |           |
--------------------------------------------------------------------------------
| Equity holders of the company   |    5 721 |     -670 |   33 020 |    22 950 |
--------------------------------------------------------------------------------
| Minority interest               |       89 |      -27 |       85 |       -25 |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    

--------------------------------------------------------------------------------
| EUR 1000                                     |       12/2009 |       12/2008 |
--------------------------------------------------------------------------------
|                                              |               |               |
--------------------------------------------------------------------------------
| ASSETS                                       |               |               |
--------------------------------------------------------------------------------
|                                              |               |               |
--------------------------------------------------------------------------------
| Non-current assets                           |               |               |
--------------------------------------------------------------------------------
| Intangible assets                            |               |               |
--------------------------------------------------------------------------------
| Goodwill                                     |       113 771 |       115 451 |
--------------------------------------------------------------------------------
| Customer contracts arising from acquisitions |         6 232 |         7 346 |
--------------------------------------------------------------------------------
| Agreements on prohibition of competition     |        11 641 |        13 270 |
--------------------------------------------------------------------------------
| Other intangible assets arising from         |         3 194 |         5 158 |
| business acquisitions                        |               |               |
--------------------------------------------------------------------------------
| Other intangible assets                      |        13 579 |        11 402 |
--------------------------------------------------------------------------------
|                                              |       148 417 |       152 627 |
--------------------------------------------------------------------------------
| Property, plant and equipment                |               |               |
--------------------------------------------------------------------------------
| Land                                         |         4 015 |         3 832 |
--------------------------------------------------------------------------------
| Buildings and constructions                  |        72 072 |        43 958 |
--------------------------------------------------------------------------------
| Machinery and equipment                      |       110 817 |       113 851 |
--------------------------------------------------------------------------------
| Other                                        |            81 |            78 |
--------------------------------------------------------------------------------
| Prepayments and construction in progress     |        14 666 |        35 433 |
--------------------------------------------------------------------------------
|                                              |       201 651 |       197 152 |
--------------------------------------------------------------------------------
| Other non-current assets                     |               |               |
--------------------------------------------------------------------------------
| Available-for-sale investments               |           525 |           502 |
--------------------------------------------------------------------------------
| Finance lease receivables                    |         4 425 |         4 694 |
--------------------------------------------------------------------------------
| Deferred income tax assets                   |         2 147 |           945 |
--------------------------------------------------------------------------------
| Other receivables                            |           726 |           689 |
--------------------------------------------------------------------------------
|                                              |         7 823 |         6 830 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total non-current assets                     |       357 891 |       356 609 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                               |               |               |
--------------------------------------------------------------------------------
| Inventories                                  |        32 842 |        18 827 |
--------------------------------------------------------------------------------
| Trade and other receivables                  |        77 702 |        74 634 |
--------------------------------------------------------------------------------
| Derivative receivables                       |               |           112 |
--------------------------------------------------------------------------------
| Prepayments                                  |           370 |           986 |
--------------------------------------------------------------------------------
| Available-for-sale investments               |        18 484 |        20 368 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                    |         9 099 |         6 149 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total current assets                         |       138 497 |       121 076 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS                                 |       496 388 |       477 685 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| EUR 1000                                     |       12/2009 |       12/2008 |
--------------------------------------------------------------------------------
|                                              |               |               |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES                       |               |               |
--------------------------------------------------------------------------------
|                                              |               |               |
--------------------------------------------------------------------------------
| Equity                                       |               |               |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of the |               |               |
| company                                      |               |               |
--------------------------------------------------------------------------------
| Share capital                                |        19 399 |        19 399 |
--------------------------------------------------------------------------------
| Share premium reserve                        |        50 673 |        50 673 |
--------------------------------------------------------------------------------
| Other reserves                               |        -3 084 |        -2 964 |
--------------------------------------------------------------------------------
| Retained earnings                            |       116 874 |        97 799 |
--------------------------------------------------------------------------------
| Profit for the period                        |        33 140 |        39 969 |
--------------------------------------------------------------------------------
|                                              |       217 002 |       204 876 |
--------------------------------------------------------------------------------
| Minority interest                            |           247 |           162 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity                                 |       217 249 |       205 038 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities                                  |               |               |
--------------------------------------------------------------------------------
| Non-current liabilities                      |               |               |
--------------------------------------------------------------------------------
| Deferred income tax liabilities              |        33 622 |        32 898 |
--------------------------------------------------------------------------------
| Retirement benefit obligations               |           671 |           674 |
--------------------------------------------------------------------------------
| Provisions                                   |         2 100 |         1 741 |
--------------------------------------------------------------------------------
| Borrowings                                   |       120 969 |       102 487 |
--------------------------------------------------------------------------------
| Other liabilities                            |         1 510 |         1 083 |
--------------------------------------------------------------------------------
|                                              |       158 872 |       138 883 |
--------------------------------------------------------------------------------
| Current liabilities                          |               |               |
--------------------------------------------------------------------------------
| Borrowings                                   |        22 890 |        44 569 |
--------------------------------------------------------------------------------
| Trade and other payables                     |        94 130 |        88 298 |
--------------------------------------------------------------------------------
| Derivative liabilities                       |         1 073 |           610 |
--------------------------------------------------------------------------------
| Tax liabilities                              |         2 119 |           273 |
--------------------------------------------------------------------------------
| Provisions                                   |            55 |            14 |
--------------------------------------------------------------------------------
|                                              |       120 267 |       133 764 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities                            |       279 139 |       272 647 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES                 |       496 388 |       477 685 |
--------------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF CASH FLOWS                                            

--------------------------------------------------------------------------------
| EUR 1000                                     |       12/2009 |       12/2008 |
--------------------------------------------------------------------------------
|                                              |               |               |
--------------------------------------------------------------------------------
| Cash flows from operating activities         |               |               |
--------------------------------------------------------------------------------
| Profit for the period                        |        33 145 |        39 968 |
--------------------------------------------------------------------------------
| Adjustments                                  |               |               |
--------------------------------------------------------------------------------
| Income tax expense                           |        11 881 |        10 724 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and impairment    |        40 334 |        40 985 |
--------------------------------------------------------------------------------
| Finance income and costs                     |         5 238 |         4 806 |
--------------------------------------------------------------------------------
| Oil derivatives                              |               |        -2 221 |
--------------------------------------------------------------------------------
| Gain on sale of shares                       |           -70 |       -14 258 |
--------------------------------------------------------------------------------
| Discontinued operations                      |               |         2 616 |
--------------------------------------------------------------------------------
| Other                                        |         1 809 |           444 |
--------------------------------------------------------------------------------
| Net cash generated from operating activities |        92 337 |        83 064 |
| before change in working capital             |               |               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in working capital                    |               |               |
--------------------------------------------------------------------------------
| Change in trade and other receivables        |        -4 654 |         3 502 |
--------------------------------------------------------------------------------
| Change in inventories                        |       -14 022 |        -4 492 |
--------------------------------------------------------------------------------
| Change in trade and other payables           |         6 689 |         3 152 |
--------------------------------------------------------------------------------
| Change in working capital                    |       -11 987 |         2 162 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest paid                                |        -7 511 |        -5 953 |
--------------------------------------------------------------------------------
| Interest received                            |         1 505 |         1 867 |
--------------------------------------------------------------------------------
| Income tax paid                              |        -8 156 |       -10 716 |
--------------------------------------------------------------------------------
| Net cash from operating a