Slides
Page 1
Lassila & Tikanoja Interim Report January - September 2026 Eero Hautaniemi, President & CEO Joni Sorsanen, CFO 28 October 2026
Page 2
28.10.2026 © Lassila & Tikanoja 2 Today’s presenters Hautaniemi Eero CEO Sorsanen Joni CFO
Page 3
Contents 28.10.2026 © Lassila & Tikanoja 3 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
Page 4
Contents 28.10.2026 © Lassila & Tikanoja 4 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
Page 5
Key financial highlights of January - September 2026 Profitability recovered in the third quarter, approaching the prior - year level Net sales grew by 4.1% to EUR 328.5m, growth particularly in Hazardous Waste and Remediation Adj. EBITDA EUR 59.5m (64.0m) Adj. EBITA EUR 25.2m (31.6m) Free cash flow improved year - on - year on a comparable basis 1 2 3 * 2025 figures on a carve out basis * 2025 figures on a carve out basis 28.10.2026 © Lassila & Tikanoja 5 * 2025 figures on a carve out basis
Page 6
Key operational highlights of January - September 2026 Strong growth in Hazardous Waste and Remediation service area, 20.7% increase y - o - y Corrective measures to improve performance in Waste Management on - going and yielding results Growth initiatives related to waste - to - material progressing according to plan 1 2 3 28.10.2026 © Lassila & Tikanoja 6
Page 7
89,4 109,9 116,1 111,2 94,8 116,2 117,5 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 Net sales development 2025 – 2026 ● Net sales for Jan - Sep 2026 amounted to EUR 328.5m (315.5), growth of 4 .1% year - on - year – Organic growth was 1.9% ● Net sales for Q3 2026 amounted to EUR 117.5m (116.1), growth of 1.2% year - on - year – Organic growth was 0.3% ● Revenue growth continued in Q3, although at a slower pace than in H1 – End of active phase of two major environmental construction projects slowed net sales growth in the third quarter Commentary Note: Figures presented for 2025 correspond to new L&T carve - out numbers Net Sales 2025 – 2026 by Quarter EURm 28.10.2026 © Lassila & Tikanoja 7
Page 8
74,3 71,9 20,5 21,1 23,0 26,5 - 1,7 - 2,0 116,1 117,5 Q3/25 Q3/26 208,6 207,5 49,1 59,3 61,5 66,4 - 3,7 - 4,7 315,5 328,5 1-9/2025 1-9/2026 Net sales development by Service Area 2025 – 2026 ● Net sales in Waste Management and Recycling decreased by 0.5% and amounted to EUR 207.5m (208.6) – Net sales supported by growth in the pallet business following the acquisition, but affected by challenging market conditions ● Net sales in Hazardous Waste and Remediation grew by 20.7% to EUR 59.3m (49.1) – Growth driven by remediation projects, stable demand in hazardous waste ● Net sales in Industrial Services and Water Treatment grew by 8.0% to EUR 66.4m (61.5) – Strong annual maintenance activity in Q3 – In 2026, the maintenance shutdowns are more heavily weighted towards H2 than in 2025 Commentary Net Sales 2025 – 2026 by Service Area EURm 28.10.2026 © Lassila & Tikanoja 8 Waste Management and Recycling Hazardous Waste and Remediation Industrial Services and Water Treatment Eliminations +1.2 %
Page 9
2,6 13,3 15,7 9,0 0,2 9,8 15,2 2,9 % 12,1 % 13,5 % 8,1 % 0,3 % 8,4 % 12,9 % -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 ● Profitability recovered during Q3 as the benefits of corrective actions began to materialize. Full impact from Q1/2027 onwards ● Q3 adjusted EBITA EUR 15.2m (15.7), supported by well - executed annual maintenance breaks as well as cost savings ● Adjusted EBITA for Jan - Sep 2026 was EUR 25.2m (31.6), or 7.7% (10.0) of net sales ● Jan - Sep 2026 Waste Management profitability was negatively affected by: – EUR 5 million y - o - y increase in costs resulting from higher fuel prices – Exceptional challenges in waste - to - energy – EUR 1 million y - o - y increase in amortisation related to the ERP system renewal Commentary Adjusted EBITA 2025 – 2026 by Quarter EURm and as % of net sales, carve out figures 28.10.2026 © Lassila & Tikanoja 9 Note: Figures presented for 2025 correspond to new L&T carve - out numbers
Page 10
Contents 28.10.2026 © Lassila & Tikanoja 10 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
Page 11
Finland: macroeconomic situation Recovery has strengthened, but employment and housing still lag L&T implication Improving retail, industrial and investment activity should gradually support waste volumes, while weak housing activity and elevated fuel costs continue to limit near-term upside ▪ Latest domestic forecasts indicate 1.6 – 1.7% GDP growth in 2026 and 1.6 – 1.8% in 2027, driven mainly by exports and investment. ▪ Retail volumes are recovering, but weak consumer confidence continues to constrain discretionary spending. ▪ Unemployment remains high and is expected to decline only gradually. ▪ Data centers and infrastructure segment are supporting construction industry. Housing segment remains subdued. ▪ Inflation is expected at approximately 2.4% in 2026, easing in 2027. Energy prices, geopolitics, trade disruption and weak public finances remain the principal risks.
Page 12
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 2026M09 Average price development for diesel in Finland in 2021 - 26 (EUR per litre , with taxes) 28.10.2026 © Lassila & Tikanoja 12 Diesel prices remained at exceptionally high levels in Q3, reaching the highest level of 2026 in September Source: Statistics Finland ● In July - September 2026, diesel prices in Finland were approximately 38% higher year - on - year ● Higher diesel prices increased costs by approximately EUR 5 million year - on - year during Jan - Sep 2026 ● Higher fuel prices have largely been offset by price increases, but these take effect with a 2 – 6 - month delay and are not yet fully reflected in the reported result Key messages Average diesel price in Sep 2026 up 49% y - o - y, or €0.64 per litre excl. VAT
Page 13
95 100 105 110 115 120 125 130 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Retail revenue Retail volume Finnish Retail industry , 2015 = 100, rolling 12 - month average Key messages 28.10.2026 © Lassila & Tikanoja 13 Improving retail activity supports a more favorable waste volume outlook COVID shifted consumption from services to goods, boosting retail volumes Decline in 2021 - 24, reflecting inflation, weakening purchasing power, and normalization after COVID Source: Statistics Finland ● Retail volumes have stabilized and turned positive after a prolonged decline ● Improving retail activity supports a gradual recovery in commercial waste volumes
Page 14
Price development of selected recycled material indexes 28/10/2026 © 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 Sep-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 Sep-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 Sep-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 Sep-26
Page 15
Contents 28.10.2026 © Lassila & Tikanoja 15 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
Page 16
10% 11% 12% 13% 14% 15% 16% 17% 18% 50 55 60 65 70 75 80 85 90 Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q3/26 Adjusted Fixed costs Adjusted Fixed costs as % of net sales Fixed costs development 2024 - 26 (adjusted for IAC) ● Adjusted fixed cost base has remained broadly stable in absolute terms in 2024 - Q3/2026 ● In Jan - Sep 2026, adjusted fixed costs declined year - on - year despite higher net sales and stand - alone cost increases following the demerger ● In July 2026, L&T concluded change negotiations, which resulted in 17 employment terminations and up to 420 employees being temporarily laid off for 14 or 30 days ● Cost efficiency measures expected to support profitability going forward Commentary Adjusted Fixed Costs 2024 – 2026 by Quarter (LTM) EURm and as % of net sales, carve out figures for 2024 - 25 28.10.2026 © Lassila & Tikanoja 16 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 decreasing in Jan - Sep 2026
Page 17
Contents 28.10.2026 © Lassila & Tikanoja 17 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
Page 18
Sustainability scorecard Key sustainability highlights in Jan - Sep 2026 Carbon handprint kt CO₂e - 284.9 ( - 275.7) TRIF 19.2 (22.5) Carbon footprint kt CO₂e 15.3 (15.1) NPS 44 (44) Commentary ● Positive safety development in January - September, TRIF decreased to 19.2 (22.5) ● Direct emissions on previous year’s level ● Carbon handprint grew by 3% y - o - y ● L&T launched a project to phase out the separate collection of energy waste 28.10.2026 © Lassila & Tikanoja 18
Page 19
Contents 28.10.2026 © Lassila & Tikanoja 19 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
Page 20
Highlights Profitability recovered in the third quarter, approaching the prior - year level Leverage improved from Q2 as seasonal cash flow strengthened Adjusted for comparability, free cash flow improved year - on - year 1 2 Share of profit from Laania in line with previous year 3 4 28.10.2026 © Lassila & Tikanoja 20
Page 21
- 25 - 15 - 6 - 30 - 21 - 13 - 6 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 Q3 2026 amounted to EUR - 6.4m ( - 6.2m), in line with previous year ● NWC was tied up by EUR 23.3m (22.2m) in January - September 2026, affected by NWC seasonality as well as 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 28.10.2026 © Lassila & Tikanoja 21
Page 22
CapEx development 2025 – 2026 ● In Jan - Sep 2026, capital expenditure amounted to EUR 16.0m (25.2m), organic CapEx somewhat below previous year ● CapEx in January - September 2026 consisted primarily of investments in machinery and equipment ● In 1 - 9/2026, depreciation and amortization in total amounted to EUR 35.9m (33.7m) ● In 1 - 9/2026, 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 28.10.2026 © Lassila & Tikanoja 22 Organic CapEx Business acquisitions 29,2 12,5 41,7 FY 2025 17,6 16,0 7,6 25,2 16,0 Q1-Q3/25 Q1-Q3/26
Page 23
79,8 63,8 34,3 8,4 15,6 6,0 0,6 9,4 9,1 20,4 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 Jan-Sep/26 Net cash from operations and investments Jan-Sep/25 Cash flow development 2025 – 2026 ● In 1 - 9/2026, net cash flow after investments EUR 8.4m (15.6) , 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 improved y - o - y ● In Q3 2026, LTM net cash from operations EUR 63.8m and LTM net cash from operations after investments EUR 34.3m ● LTM free cash flow in relation to reported EBITDA ~46% Commentary Free cash flow bridge LTM Q3 2026 EURm 28.10.2026 © Lassila & Tikanoja 23 Y - on - Y
Page 24
Financial position Balance sheet KPIs by quarter 2025 - 2026 Net interest - bearing debt (m€) Equity ratio (%) Net debt / Adjusted EBITDA Gearing (%) Commentary ● Net debt / Adjusted EBITDA ratio at 2.0x at the end of September 2026 - Net debt amounted to EUR 163.5m - Adjusted EBITDA on a rolling 12 - month basis was EUR 79.8m ● Equity ratio was 33.9% and Gearing ratio 96.8%, strengthening from the previous quarter ● As for financial position, Q1/2025, Q2/2025 and Q3/2025 prepared on a carve - out basis ➔ do not reflect Lassila & Tikanoja’s capital and financing structure 28.10.2026 © Lassila & Tikanoja 24 1,8x 1,9x 2,1x 2,0x Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 150,2 161,5 171,1 163,5 Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 35,0 % 35,1 % 32,9 % 33,9 % Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 86,9 % 94,5 % 106,9 % 96,8 % Q4/25 Q1/26 Q2/26 Q3/26 Q4/26
Page 25
10 135 200 163 36 75 50 65 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 135.1m - Commercial papers EUR 10m due in 2026 - Bond EUR 75m due in 2028 - Bank loan EUR 50m due in 2030 (2029 + one - year extension) ● Cash and cash equivalents EUR 36.2m at period - end ● Committed RCF of EUR 40m unused as per 30 Sep 2026 ● The average interest rate of long - term loans, excluding lease liabilities, 3.4% Maturity structure of interest - bearing debt Commentary Maturity structure as per 30 September 2026 EURm 28.10.2026 © Lassila & Tikanoja 25 Assuming that the second one - year extension option utilised for EUR 50m bank loan
Page 26
Key performance indicators KPIs for January - September 2026 ROE - % 8.2% ~13% Share of profit from Laania EUR 0.8m (1.0m) ROCE - % 8.0% ~10% EPS EUR 0.36 Commentary ● Reported ROCE for Q3 2026 was 8.0%, impacted by IAC and carve - out principles - Illustrative ROCE adjusted for IAC and carve - out principles ~10% ● Reported ROE for Q3 2026 was 8.2%, impacted by IAC and carve - out principles - Illustrative ROE adjusted for IAC and carve - out principles ~13% ● L&T’s share of the profit from the joint venture Laania was EUR 0.8m (1.0). ● Earnings per share for Jan - Sep 2026 was EUR 0.36 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. 28.10.2026 © Lassila & Tikanoja 26
Page 27
Contents 28.10.2026 © Lassila & Tikanoja 27 Highlights Market environment Efficiency & Operations Sustainability Financials Outlook 1 2 3 4 5 6
Page 28
“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) 28.10.2026 © Lassila & Tikanoja 28