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Lassila & Tikanoja Half - Year Financial Report January - June 2026 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 6 August 2026
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6.8.2026 © Lassila & Tikanoja 2 Today’s presenters Hautaniemi Eero CEO Sorsanen Joni CFO
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Contents 6.8.2026 © Lassila & Tikanoja 3 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
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Contents 6.8.2026 © Lassila & Tikanoja 4 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
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Key financial highlights of H1 2026 Net sales grew, profitability affected by market environment in waste management Net sales grew by 5.9% to EUR 211.1m, growth in all service areas Adj. EBITDA EUR 32.8m (36.9m) Adj. EBITA EUR 10.1m (15.9m) Free cash flow in line with previous year on a comparable basis 1 2 3 * 2025 figures on a carve out basis * 2025 figures on a carve out basis 6.8.2026 © Lassila & Tikanoja 5 * 2025 figures on a carve out basis
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Key operational highlights of H1 2026 Strong growth in Hazardous Waste and Remediation service area, 33.2% increase year - on - year Strategy execution progressing as planned Corrective measures to improve performance in W aste M anagement on - going and expected to yield results in H2 2026 1 2 3 6.8.2026 © Lassila & Tikanoja 6
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89,4 109,9 116,1 111,2 94,8 116,2 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 Net sales development 2025 – 2026 ● Net sales for H1 2026 amounted to EUR 211.1m (199.4), growth of 5 .9% year - on - year – Organic growth was 2.8% ● Net sales for Q2 2026 amounted to EUR 116.2m (109.9), growth of 5.7% year - on - year – Organic growth was 3.5% ● Net sales growth in H1 2026 represents a continuation of the positive growth momentum that started in H2 2025 Commentary Note: Figures presented for 2025 correspond to new L&T carve - out numbers Net Sales 2025 – 2026 by Quarter EURm 6.8.2026 © Lassila & Tikanoja 7
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70,6 71,2 16,2 22,8 24,5 23,9 - 1,3 - 1,7 109,9 116,2 Q2/25 Q2/26 134,3 135,7 28,6 38,2 38,5 39,9 - 2,0 - 2,7 199,4 211,1 H1/2025 H1/2026 Net sales development by Service Area 2025 – 2026 ● Net sales in the Waste Management and Recycling increased by 1.0% and amounted to EUR 135.7m (134.3). – Net sales supported by growth in the pallet business following the acquisition, but affected by challenging market conditions ● Net sales in the Hazardous Waste and Remediation grew by 33.2% to EUR 38.2m. – Strong remediation project pipeline – Stable demand in hazardous waste ● Net sales in Industrial Services and Water Treatment grew by 3.7% to EUR 39.9m (38.5). – Q2 net sales affected by timing of industrial maintenance shutdowns – In 2026, the maintenance shutdowns are more heavily weighted towards H2 than in 2025 Commentary Net Sales 2025 – 2026 by Service Area EURm 6.8.2026 © Lassila & Tikanoja 8 Waste Management and Recycling Hazardous Waste and Remediation Industrial Services and Water Treatment Eliminations
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2,6 13,3 15,7 9,0 0,2 9,8 2,9 % 12,1 % 13,5 % 8,1 % 0,3 % 8,4 % -10% -5% 0% 5% 10% 15% 0 2 4 6 8 10 12 14 16 18 20 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 Adjusted EBITA Adjusted EBITA (%) Adjusted EBITA development 2025 – 2026 ● Adjusted EBITA for H1 2026 was EUR 10.1m (15.9), or 4.8% (8.0) of net sales ● Jan - Jun 2026 profitability was affected by: – EUR 3 million y - o - y increase in costs resulting from higher fuel prices – Increase in gate fees for waste - to - energy, driven by an oversupply of incinerable waste in the market – EUR 0.8 million y - o - y increase in amortisation related to the ERP system renewal investment – Decline in waste management volumes Commentary Adjusted EBITA 2025 – 2026 by Quarter EURm and as % of net sales, carve out figures 6.8.2026 © Lassila & Tikanoja 9 Note: Figures presented for 2025 correspond to new L&T carve - out numbers
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Contents 6.8.2026 © Lassila & Tikanoja 10 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
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Finland: macroeconomic situation Recovery gaining traction despite continued uncertainty ▪ Economic activity continued to recover during H1 2026 following a return to growth in late 2025 ▪ Finnish GDP is forecast to grow by approximately 1% in 2026, with a stronger recovery expected from 2027 onwards ▪ Industrial activity is gradually improving, while construction activity remains subdued ▪ Higher energy prices and geopolitical uncertainty remain key downside risks
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Finnish Retail industry Municipal Solid Waste (MSW) in Finland 6.8.2026 © Lassila & Tikanoja 12 Positive signs of recovery in Finnish retail volumes likely to support future waste volume development Retail revenue Retail volume Finnish Retail Industry, 2015 = 100, rolling 3 - month average Finnish retail volumes peaked in 2021, followed by a clear downshift in 2022 – 2025. COVID shifted consumption from services to goods, boosting retail volumes Decline in 2021 - 24, reflecting inflation, weakening purchasing power, and normalization after COVID 1 500 2 000 2 500 3 000 3 500 4 000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1,000 tonnes Between 2021 and 2024, MSW volumes have contracted by 26%, falling from peak in 2021 to the trough reached in 2024. Source: Statistics Finland
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0,00 0,50 1,00 1,50 2,00 2,50 3,00 2021M01 2021M03 2021M05 2021M07 2021M09 2021M11 2022M01 2022M03 2022M05 2022M07 2022M09 2022M11 2023M01 2023M03 2023M05 2023M07 2023M09 2023M11 2024M01 2024M03 2024M05 2024M07 2024M09 2024M11 2025M01 2025M03 2025M05 2025M07 2025M09 2025M11 2026M01 2026M03 2026M05 2026M07 Average price development for diesel in Finland in 2021 - 26 (EUR per litre , with taxes) 6.8.2026 © Lassila & Tikanoja 13 Sharp increase in fuel price since March 2026 due to the Middle East crisis – similar trend to early 2022 Source: Statistics Finland Diesel price in Q2 2026 ~35% higher year - on - year ➔ L&T has implemented several price increases during Q2 2026 However, compared to 2022, the effectiveness of pricing actions has been slower and less comprehensive, resulting in a temporary margin impact
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Price development of selected recycled material indexes 6.8.2026 © Lassila & Tikanoja 14 Recycled plastic films (€/t) Recovered paper (€/t) OCC / brown cardboard (€/t) Mixed scrap metal (€/t) Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26
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Fair competition Measures to promote recycling 6.8.2026 © Lassila & Tikanoja 15 Key developments in the regulatory environment • Finnish government published its proposal for necessary reforms to the Waste Act to promote fair competition and CE market • The limit for in - house sales will be tightened from the current 10% to 5% / 500,000 euros • Municipal waste companies' opportunities to operate in the market will be limited by tightening the criteria for secondary waste management liability (TSV) • Obligation to tender services • Dividend distribution possibilities for municipal waste companies more limited • EU commission proposal integrates CE solutions more strongly into climate change mitigation • Extension of the ETS to non - hazardous waste incineration and co - incineration installations from 2031 • Proposal introduces monitoring, reporting and verification (MRV) requirements for non - hazardous landfills and expands the use of ETS revenues to support waste prevention, reuse, recycling and other measures higher up the waste hierarchy • Carbon capture and carbon removal solutions will be integrated into ETS ETS review promotes circular economy • Finnish government has published several initiatives to promote recycling • Ban on collecting recyclable waste as energy waste • Tightening requirements for separate collection of bio and packaging waste • Expansion of the waste tax base • Tax base expansion is estimated to increase the amount of taxable waste by 350,000 tons (current amount is less than 100,000 tons)
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Contents 6.8.2026 © Lassila & Tikanoja 16 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
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Growth strategy execution progressing as planned 6.8.2026 © Lassila & Tikanoja 17 Strengthen position in current service markets Geographical expansion in Sweden Waste - to - value and remediation growth 2 3 1 Organic growth Inorganic growth Long - term target : Average annual growth exceeding 6% New significant customer wins from H2 onwards Kerava recycling plant Kuopio circular economy plant Reinikka sewer maintenance services Stena pallet recycling services Acquisition of the remaining shares in SVB Acquisition of Recond Concept Expansion of Merikarvia plastic recycling plant Expansion of Finnish - origin blast cleaning and higher annual maintenance activity
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-20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 0 20 40 60 80 100 120 140 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Adjusted Fixed costs Adjusted Fixed costs as % of net sales Fixed costs development 2024 - 26 (adjusted for IAC) ● L&T’s LTM adjusted fixed cost base has remained largely unchanged both in absolute and relative terms in 2024 - Q2/2026 ● In H1 2026, a slight decrease in adjusted fixed costs y - o - y regardless of increase in net sales and negative cost synergies following the demerger ● In July 2026, L&T concluded change negotiations, which will result in up to 20 employees having their employment terminated and up to 420 employees being temporarily laid off for 14 or 30 days ● Cost efficiency measures to be continued going forward Commentary Adjusted Fixed Costs 2024 – 2026 by Quarter (LTM) EURm and as % of net sales, carve out figures for 2024 - 25 6.8.2026 © Lassila & Tikanoja 18 Note: Figures presented for 2024 and 2025 correspond to new L&T carve - out numbers. Fixed costs do not include depreciation and a mortisation. Fixed costs as % of net sales broadly stable in 2024 - Q2/2026
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Transformation program in Waste Management 6.8.2026 © Lassila & Tikanoja 19 KEY COMPONENTS OF THE PROGRAM Operational Efficiency Performance Management Lean and Agile Organisation 2 3 4 Commercial Excellence 1 ▪ Route optimization ▪ Improved fleet utilization ▪ Improved workforce productivity ▪ Standardised operating practices ▪ Stronger performance management model across organisation ▪ Enhanced productivity monitoring and accountability ▪ Flatter organisational structure ▪ Faster decision - making and execution ▪ Increased management effectiveness ▪ More focused and efficient sales organization ▪ Improved customer acquisition and retention
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Contents 6.8.2026 © Lassila & Tikanoja 20 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
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Sustainability scorecard Key sustainability highlights in H1 2026 Carbon handprint kt CO₂e - 188.4 ( - 194.2) TRIF 18.1 (24.4) Carbon footprint kt CO₂e 9.8 (9.9) Recycling rate % 58.2 (61.7) Commentary ● Positive safety development in H1, TRIF decreased to 18 (24) ● Direct emissions continued to decrease year - on - year ● Carbon handprint negatively impacted by continued decline in the volume of recycled paper ● The recycling rate is not fully comparable with the comparison period due to the renewal of the ERP system ● There have been no significant changes in the development of material flows directed to recycling 6.8.2026 © Lassila & Tikanoja 21
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Contents 6.8.2026 © Lassila & Tikanoja 22 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
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Highlights Net sales growth continued, profitability impacted by Waste Management headwinds Strong balance sheet maintained despite seasonal increase in net debt Adjusted for comparability, free cash flow in line with comparison period 1 2 Share of profit from Laania in line with previous year 3 4 6.8.2026 © Lassila & Tikanoja 23
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- 25 - 15 - 6 - 30 - 21 - 13 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 Net working capital development 2025 – 2026 ● NWC at the end of Q2 2026 amounted to EUR - 13.2m ( - 15.4m), change of EUR +2.2m year - on - year ● NWC was tied up by EUR 16.6m (13.1m) in January - June 2026, affected by partial demerger related one - off payments to Luotea Plc (EUR 5.9m) ● In terms of seasonality, NWC expected to improve towards the year - end Commentary NWC 2025 – 2026 by quarter EURm, carve out figures for Q1/25 – Q3/25 6.8.2026 © Lassila & Tikanoja 24
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CapEx development 2025 – 2026 ● In H1 2026, capital expenditure amounted to EUR 10.7m (19.2m), organic CapEx somewhat below previous year ● CapEx in H1 consisted primarily of investments in machinery and equipment ● In H1 2026, depreciation and amortization in total amounted to EUR 23.9m (21.8m) ● In H1 2026, year - on - year increase of EUR 0.8m due to ERP related amortisation ● Capital expenditure in 2025 was EUR 41.7m, of which organic CapEx was EUR 29.2m Commentary CapEx 2025 – 2026 EURm, carve - out figures for 2025 6.8.2026 © Lassila & Tikanoja 25 Organic CapEx Business acquisitions 29,2 12,5 41,7 FY 2025 11,6 10,7 7,6 19,2 10,7 H1/25 H1/26
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80,2 64,5 33,3 - 2,7 5,4 6,3 1,8 7,6 9,2 22,0 Adjusted EBITDA Items affecting comparability Change in NWC Interests, taxes and other items Net cash from operations Aqcuisitions Operative investments Net cash from operations and investments Net cash from operations and investments H1/26 Net cash from operations and investments H1/25 Cash flow development 2025 – 2026 ● In H1 2026, net cash flow after investments EUR - 2.7m (5.4) , weakened by partial demerger related one - off payments to Luotea Plc, totaling EUR 5.9m ● Taking into account these one - off payments as well as the interest payments on financing loans that were not included in 2025 carve - out cash flow, free cash flow in line with previous year ● In Q2 2026, LTM net cash from operations EUR 64.5m and LTM net cash from operations after investments EUR 33.3m ● LTM free cash flow in relation to reported EBITDA ~45% Commentary Free cash flow bridge LTM Q2 2026 EURm 6.8.2026 © Lassila & Tikanoja 26 Y - on - Y
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Financial position as per 30 June 2026 Balance sheet KPIs as per 30 June 2026 Net interest - bearing debt EUR 171.1m Equity ratio % 32.9 Net debt / Adjusted EBITDA 2.1x Gearing % 106.9 Commentary ● Net debt / Adjusted EBITDA ratio at 2.1x at the end of June 2026 - Net debt amounted to EUR 171.1m - Adjusted EBITDA on a rolling 12 - month basis was EUR 80.2m ● Equity ratio was 32.9% and Gearing ratio 106.9%, affected by FY2025 dividend recognized in Q2 2026 ● As for financial position, Q1/2025, Q2/2025 and Q3/2025 prepared on a carve - out basis ➔ do not reflect the capital and financing structure of Lassila & Tikanoja 6.8.2026 © Lassila & Tikanoja 27
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125 189 171 18 75 50 64 2026 2027 2028 2029 2030 2031 Gross debt (excl. IFRS 16) IFRS 16 liabilities Gross debt (IFRS) Cash and cash equivalents Net debt (IFRS) ● Interest - bearing liabilities excluding IFRS 16 at EUR 125.1m - Bond EUR 75m due in 2028 - Bank loan EUR 50m due in 2030 (2028 + two - year extension, first of which was utilized in Q2) ● Cash and cash equivalents EUR 18.3m at period - end ● Committed RCF of EUR 40m unused as per 30 June 2026 ● The average interest rate of long - term loans, excluding lease liabilities, 3.3% Maturity structure of interest - bearing debt Commentary Maturity structure as per 30 June 2026 EURm 6.8.2026 © Lassila & Tikanoja 28 Assuming that two - year extension option utilised for EUR 50m bank loan
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Key performance indicators for H1 2026 KPIs for January - June 2026 ROE - % 9.1% ~13% Share of profit from Laania EUR 1.3m (1.2m) ROCE - % 8.4% ~10% EPS EUR 0.12 Commentary ● Reported ROCE for Q2 2026 was 8.4%, impacted by IAC and carve - out principles - Indicative ROCE adjusted for IAC and carve - out principles ~10% ● Reported ROE for Q2 2026 was 9.1%, impacted by IAC and carve - out principles - Indicative ROE adjusted for IAC and carve - out principles ~13% ● L&T’s share of the profit from the joint venture Laania was EUR 1.3m (1.2). ● Earning per share for Jan - Jun 2026 was EUR 0.12 per share. EPS figures for 2025 not comparable, as L&T’s external borrowings and the related net finance costs, among other items, have not been included in the carve - out financial information for 2025. 6.8.2026 © Lassila & Tikanoja 29
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Contents 6.8.2026 © Lassila & Tikanoja 30 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
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“In 2026, net sales are estimated to be EUR 420 – 450 million and adjusted EBITA EUR 33 – 38 million. In 2025, the company’s net sales amounted to EUR 426.6 million and adjusted EBITA was EUR 40.6 million (on a carve - out basis).” Outlook for 2026 ( revised on 14 July 2026) 6.8.2026 © Lassila & Tikanoja 31