Luotea (LUOTEA) CMD 2025 summary

Strategic rationale and business transformation

• Demerger aims to enhance management focus, accelerate growth, improve transparency, and unlock shareholder value by creating two independent companies, each with a clear strategic direction.

• Shareholders will receive shares in both new entities, with the demerger expected to complete by year-end and trading of new shares to begin in January 2026.

Lassila & Tikanoja: Circular economy growth strategy

• Holds a leading market position in Finland with a 20% share and a strong presence in Sweden, focusing on waste management, recycling, hazardous waste, and industrial services.

• Targets over 6% annual sales growth and an 11% EBITA margin, supported by a unique end-to-end service platform and a robust balance sheet.

• Sustainability is central, with a net zero target by 2045 and a focus on increasing customer recycling rates to 70% by 2030.

• Growth pillars include cross-selling, Swedish market expansion, and deeper integration in the waste-to-value chain, with both organic investments and bolt-on acquisitions.

• Market trends and regulation favor recycling and reuse, with ongoing investments in digitalization, IT infrastructure, and treatment capacity to support scalability and efficiency.

Luotea: Facility services strategy and turnaround

• Positioned as a leading Nordic facility services platform with a top-3 market share in Finland and a comprehensive, asset-light offering across cleaning, property maintenance, and technical services.

• Operates in a resilient, €12bn+ Nordic facility services market growing above GDP, driven by sustainability, digitalization, and regulatory trends favoring large players.

• Less than 5% of customers use the full service portfolio, presenting significant cross-selling and upselling opportunities.

• Finnish operations have achieved a turnaround, with cleaning EBIT margins rising from 2% in 2019 to 8% by mid-2025; property maintenance has moved from negative to positive margins.

• Swedish operations are in early turnaround stages, with a clear playbook being executed and Q3 2025 showing positive EBITDA.