Appendix 1 Reconciliation of alternative performance measures
Beskrivning
| Land | Finland |
|---|---|
| Lista | Mid Cap Helsinki |
| Sektor | Energi & Miljö |
| Industri | Miljö & Återvinning |
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LASSILA & TIKANOJA PLC - STOCK EXCHANGE RELEASE - 26 NOVEMBER 2025 AT 8:00 A.M.
Capital Markets Day of the future Luotea Plc and Lassila & Tikanoja Plc today, 26 November
Lassila & Tikanoja plc (the “Company”) announced on 7 August 2025 the approval of a demerger plan, according to which, the Company’s circular economy business area will be transferred to a new independent company to be incorporated and named Lassila & Tikanoja Plc (the “New Lassila & Tikanoja”). The Company would retain its facility services businesses and is proposed to be re-named Luotea Plc (“Luotea”) in connection with the demerger.
The Company hosts a Capital Markets Day focusing on the New Lassila & Tikanoja and Luotea today, Wednesday 26 November 2025. The event and the live webcast will begin at 9:00 a.m. EET. The Capital Markets Day will take place at Flik Studios in Sanomatalo (Töölönlahdenkatu 2, Helsinki). The language of the event and all related materials will be English.
The New Lassila & Tikanoja is planned to be created in the partial demerger of the Company, whereby the Company’s circular economy business area would become an independent listed company, whose shares would be applied to be listed on the official list of Nasdaq Helsinki Ltd. Simultaneously, the Company would retain its current Facility Services Finland and Facility Services Sweden business areas, forming Luotea.
At the Capital Markets Day, themes such as the New Lassila & Tikanoja’s and Luotea’s end markets, business prospects, strategies, and mid-term financial targets will be covered. The event will also showcase the New Lassila & Tikanoja’s and Luotea’s services and cover the offerings and solutions of both companies.
The Company published a demerger and listing prospectus on 20 November 2025, which contains more detailed information on the New Lassila & Tikanoja, its shares, and the proposed demerger. Prospective investors should acquaint themselves with the English language translation of the prospectus available at https://www.lt.fi/en/investors/lt-as-an-investment/demerger-2025. The extraordinary general meeting resolving on the demerger will be held on 4 December 2025.
About future Luotea
“The name Luotea stands for reliability, trust and bold direction — steering. And that’s what we’re ready for.”, says Antti Niitynpää, CEO of Luotea, as of the completion of the demerger.
Luotea will focus on facility services and provide comprehensive solutions throughout the entire lifecycle of buildings. Luotea is shaping a future where energy efficiency, smart technologies, and data-driven management enhance the value of properties and improve everyday life for their users. Its services include property maintenance, technical and expert services, as well as cleaning and support services.
Strategy and key strengths of Luotea
Large and resilient growth markets
Luotea is well-positioned in the stable property services market. Luotea’s target market size is approximately EUR 12.2 billion, comprising EUR 6 billion in Finland and EUR 6.2 billion in Sweden. The target market is expected to have an annual growth rate of about 4 per cent. The key drivers of the market growth include increased regulation, emphasis on sustainability, automation and growing trend of outsourcing.
Strong position with differentiated spearhead offerings
Luotea is one of the leading players in all its segments, distinguished by its differentiated spearhead offering. The spearhead products consist of data-driven optimised services, energy management systems and sustainability consulting. These are the spearheads for Luotea’s growth in both new and existing customer relationships, offering cross-selling opportunities and increased demand for the core business services.
Diversified and sticky customers with repositioned contract portfolio
Luotea has a broad and diverse customer base of over 6,000 clients with a low turnover rate. Over the past three years, the optimisation of its contract portfolio has significantly increased the proportion of high-profitability contracts, providing a healthy base for future expansion.
Margin expansion through an improved operating model
In recent years, Luotea has improved its profitability in cleaning and property maintenance services in Finland and still holds significant potential for further enhancement. Luotea has a proven operating model that has already delivered strong results in Finland, and which has also been implemented in Sweden to the extent applicable.
High cash generation through contracted business model
Long-term contracts ensure stable revenue due to re-occurring nature, providing predictable and robust financial profile while reducing customer churn. In addition, efficient capital utilisation and low investment requirements ensure strong cash conversion.
Substantial growth potential in Finland and Sweden
With a diverse customer base and extensive coverage, Luotea is well-positioned to leverage cross-selling opportunities and expand into new segments. In addition, the future outsourcing needs of the public sector create additional growth potential.
Luotea’s financial targets and dividend policy
- Average annual organic revenue growth of 4–5% in the mid-term
- Adjusted EBITA margin exceeding 5% in the mid-term
- Operating free cash flow of over 90% of EBITA in the mid-term
- Dividend payout at least 50% of net profit
Certain preliminary unaudited illustrative financial information of Luotea
The figures presented below are based on the L&T Group’s segment reporting for the period between 1 October 2024 and 30 September 2025. The reconciliation of alternative performance measures is provided in Appendix 1 of this release.
| Last twelve months (1 October 2024 – 30 September 2025) EUR million / % of net sales | Finland1 | Sweden2 | Eliminations / Group administration and other | Luotea, total |
| Net sales | 229.0 | 118.3 | 0.0 | 347.4 |
| EBITDA | 19.3 | -3.8 | 0,0 | 15.5 |
| Adjusted EBITDA | 19.5 | 0.5 | 0.0 | 20.0 |
| Adjusted EBITDA margin | 8.5% | 0.4% | 5.8% | |
| EBITA3 | 13.9 | -7.5 | 0.0 | 6.4 |
| Adjusted EBITA3 | 14.1 | -3.2 | 0.0 | 10.9 |
| Adjusted EBITA margin | 6.2% | -2.7% | 3.1% | |
| Operating profit (EBIT) | 13.7 | -32.1 | 0.0 | -18.4 |
| Adjusted operating profit (EBIT) | 13.9 | -4.4 | 0.0 | 9.4 |
| Adjusted operating profit (EBIT) margin | 6.1% | -3.7% | 2.7% | |
| Net debt | 3.1 | |||
| Net debt / Adjusted EBITDA | 0.15x | |||
| Operating free cash flow4 | 13.9 | |||
| Cash conversion5 | 127% | |||
| 1 Figures based on L&T Group’s segment reporting for Facility Services Finland for 1 October 2024 – 30 September 2025 2 Figures based on L&T Group’s segment reporting for Facility Services Sweden for 1 October 2024 – 30 September 2025 3 Based on management reporting 1 October 2024 – 30 September 2025 4 Operating free cash flow = Adjusted EBITDA - Capital expenditure - Lease payments +/- Net working capital change 5 Cash conversion = Operating free cash flow / Adjusted EBITA The information presented above for Facility Services businesses is based on historical segment reporting of L&T Group and does not represent income or expenses had the businesses been managed as standalone consolidated group separate from the L&T Group. Furthermore, the segment-based information may not be indicative of Luotea’s operating performance as a standalone listed company in the future. | ||||
For more information:
Eero Hautaniemi, President and CEO, tel. +358 10 636 2810
Joni Sorsanen, CFO, tel. +358 50 443 3045
Appendix 1: Reconciliation of alternative performance measures
Disclaimer
This release does not constitute a notice to convene a general meeting of shareholders nor does it constitute a demerger or listing prospectus. Any decision with respect to the proposed demerger should be made solely on the basis of information contained in the notice to the extraordinary general meeting, the demerger plan, and the prospectus as well as on an independent assessment of the information contained therein. Investors are directed to consult the prospectus for more comprehensive information on New Lassila & Tikanoja, its shares, and the proposed demerger.
This release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.
The securities referenced in this release have not been, and will not be, registered under the United States Securities Act of 1933, as amended or under the securities laws of any state of the United States. This release is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in the United States.
Neither the United States Securities and Exchange Commission nor any other U.S. federal or state securities commission or regulatory authority has approved or disapproved the shares referenced herein, nor have any foregoing authorities passed an opinion upon the fairness or merits of such securities or upon the accuracy or adequacy of the disclosures contained in this release or in the Prospectus. Any representation to the contrary is a criminal offence in the United States.
This release includes certain performance measures, which, in accordance with the guidance issued by the European Securities and Markets Authority, are not accounting measures defined or specified in IFRS Accounting Standards and therefore are considered as alternative performance measures. Alternative performance measures should not be viewed in isolation or as a substitute to the financial measures defined or specified in IFRS Accounting Standards. All companies do not calculate alternative performance measures in a uniform way, and therefore, the alternative performance measures presented in this release may not be comparable with similarly named measures presented by other companies.