You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Lassila & Tikanoja<br />
Finland/Support Services Analyser<br />
Lassila & Tikanoja (Accumulate)<br />
Accumulate<br />
Recommendation unchanged<br />
Share price: EUR<br />
closing price as of 07/05/2012<br />
Target price: EUR<br />
Target Price unchanged<br />
Reuters/Bloomberg<br />
10.42<br />
12.00<br />
LAT1V.HE/LAT1V FH<br />
Market capitalisation (EURm) 404<br />
Current N° of shares (m) 39<br />
Free float 100%<br />
Daily avg. no. trad. sh. 12 mth 31,069<br />
Daily avg. trad. vol. 12 mth (m) 0<br />
Price high 12 mth (EUR) 13.20<br />
Price low 12 mth (EUR) 9.86<br />
Abs. perf. 1 mth -3.96%<br />
Abs. perf. 3 mth -10.33%<br />
Abs. perf. 12 mth -20.34%<br />
Key financials (EUR) 12/11 12/12e 12/13e<br />
Sales (m) 652 679 707<br />
EBITDA (m) 70 90 99<br />
EBITDA margin 10.7% 13.3% 14.0%<br />
EBIT (m) 26 46 54<br />
EBIT margin 3.9% 6.7% 7.6%<br />
Net Profit (adj.)(m) 32 31 37<br />
ROCE 9.2% 9.2% 10.9%<br />
Net debt/(cash) (m) 128 128 111<br />
Net Debt/Equity 0.6 0.6 0.5<br />
Debt/EBITDA 1.8 1.4 1.1<br />
Int. cover(EBITDA/Fin. int) 15.1 19.8 22.5<br />
EV/Sales 0.9 0.8 0.7<br />
EV/EBITDA 8.2 5.9 5.2<br />
EV/EBITDA (adj.) 6.5 5.9 5.2<br />
EV/EBIT 22.4 11.7 9.5<br />
P/E (adj.) 14.0 13.2 10.9<br />
P/BV 2.0 1.8 1.7<br />
OpFCF yield 14.8% 17.0% 22.8%<br />
Dividend yield 5.3% 5.3% 5.3%<br />
EPS (adj.) 0.82 0.79 0.96<br />
BVPS 5.62 5.85 6.26<br />
DPS 0.55 0.55 0.55<br />
13.5 vvdsvdvsdy<br />
13.0<br />
12.5<br />
12.0<br />
11.5<br />
11.0<br />
10.5<br />
10.0<br />
9.5<br />
9.0<br />
8.5<br />
Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12<br />
Source: Factset<br />
LASSILA & TIKANOJA OMXH (Rebased)<br />
Shareholders: Keskinäinen Eläkevakuutusyhtiö<br />
Ilmarinen 7%; Evald ja Hilda Nissin<br />
Säätiö 6%; Mandatum<br />
Henkivakuutusosakeyhtiö 6%;<br />
Analyst(s):<br />
Henri Parkkinen, Pohjola<br />
henri.parkkinen@pohjola.fi<br />
+358 10 252 4409<br />
Lassila & Tikanoja to sell its 50% cut in Recoil<br />
The facts: Lassila & Tikanoja has agreed to sell its 50% holding in the joint<br />
venture L&T Recoil to EcoStream, the co-owner of the JV. L&T Recoil‟s<br />
regeneration plant produces raw material i.e. base oil for the lubricant industry<br />
using different types of waste oil. It has a capacity of 60,000 tonnes a year.<br />
Our analysis: The consideration comprises EUR 10m in cash and slightly less<br />
than 20% of EcoStream‟s share capital. The transaction, which the two intend to<br />
complete by the end of Q2, will have a positive cash flow effect of EUR 10m and a<br />
neutral EBIT impact. A similar arrangement was on the table in 2010 already, but<br />
then the parties failed to reach a final agreement. The transaction is conditional on<br />
the completion of the share issue decided by EcoStream‟s <strong>AG</strong>M in April.<br />
Conclusion & Action: L&T Recoil‟s earnings figures are not published<br />
separately, but in recent years the unit‟s performance has been mostly<br />
unsatisfactory. The exit is a significant step in the company‟s restructuring as it<br />
releases capital for the development of core operations, as well as improving<br />
earnings predictability.<br />
Page 64 of 80 European Securities Network<br />
Please refer to important disclaimer on the last page
Change language