Luotea (LUOTEA) Company Presentation summary

Summary of the demerger

• The board approved a plan to separate the circular economy business into a new listed company, with the real estate services remaining in the current entity, which will be renamed Luotea Oyj.

• Shareholders will receive one share in the new company for each share held, with no action required.

• The demerger is subject to approval at an extraordinary general meeting on December 4, 2025, and is planned to be executed on December 31, 2025.

• Trading in the new company's shares on Nasdaq Helsinki is expected to begin on January 2, 2026.

Business profile and market position

• The new entity is a leading Nordic circular economy company, with €424 million in 2024 revenue and 84% recurring revenue.

• It manages about one million tons of waste annually, operates 53 processing facilities, and serves 22,000 business customers across diverse sectors.

• Holds a top market position in Finland, with strong brand recognition and customer satisfaction.

• The circular economy market is estimated at €8.7 billion, growing at 3.2% annually, with significant potential in both Finland and Sweden.

Strategic strengths and growth

• Competitive advantages include scale, comprehensive value chain coverage, and a diversified customer base.

• Focus areas for growth are core business development, material value chain integration, and geographic expansion, especially in Sweden.

• The company aims to increase the share of waste converted to materials and products, with identified market potentials of €1.1 billion and €2.2 billion, respectively, in Finland.

• Strategic growth is supported by organic investments, partnerships, and targeted acquisitions.