Indeed, Luotea was the subject of the first extensive report after the demerger of L&T. The business operations had, of course, been part of L&T’s broader scope even before, but as an independent company, Luotea emphasizes its capital lightness and good cash flow profile. As a net debt-free company, this cash flow could largely be returned as dividends, unless the company makes acquisitions, which I do not believe or hope will happen in the coming years.
Profitability has been volatile historically, and currently, Sweden is still operating at a loss, so the main focus, as the video title indicates, is indeed there. If one believes that Sweden will turn profitable, as we do, then the company’s valuation is quite moderate. At the same time, it is naturally important to maintain the good level achieved in Finland.
In connection with this report, I updated the model regarding tax assumptions, which led to an increase in earnings per share forecasts, even though I slightly lowered operational forecasts due to factors such as nascent inflation.