Slide 1: Aspo Q3
Aspo Q3 October 25, 2018 CEO Aki Ojanen
Slide 2: Aspo Q3
Aspo Q3 Operating profit increased to Net sales increased notably to ESL Shipping completed the EUR 7.2 (7.1) million, including EUR 136.3 (127.2) million. acquisition of the shipping EUR 0.9 million acquisition company AtoB@C on August related transaction costs. 31, 2018. The acquisition will have
Slide 3: Operating profit
Operating profit Operating profit, cumulative MEUR Operating profit Q3 and 28 Q1-Q3 increased including 23.1 acquisition related 24 20.4 Q1 transaction costs of 20 18.0 EUR 0.9 million. 16.6 Q1-Q2 16 14.1 Q1-Q3 12 10.8 In Q3, ESL Shipping and 9.5 8.1 Q1-Q4 Kauko increased their 8 operating profit. 4
Slide 4: Long-term financial targets
Long-term financial targets Operating profit, %, cumulative % In Q3, operating profit rate 8 decreased and was 5.3% 7 (5.6) Q1 6 4.7 Q1-Q2 Target level is 7% by 2020. 5 4.5 4.5 4.6 4.4 4.2 Q1-Q3 4 3.8 3.7 3.9 3.4 3.2 3 Q1-Q4 2 1 0 2016 2017 2018 The target level is indicated by dashed line. Q3, Octo
Slide 5: Long-term financial targets
Long-term financial targets Return of equity, (ROE) % In Q1-Q3, ROE weakened 20 and was 15.6% (16.7). 16.717.1 16 15.6 14.6 14.6 Q1 Target level is on average 13.4 13.4 13.5 Q1-Q2 over 20% by 2020. 12 11.0 8.9 Q1-Q3 8 7.0 Q1-Q4 4 0 2016 2017 2018 The target level is indicated by dashed line. Q3, Oct
Slide 6: Long-term financial targets
Long-term financial targets Gearing % Gearing increased and was 180 155% (110). 160 155 140 Q1 Target level is up to 100% 119 120 109 115 114 110 103 Q1-Q2 by 2020. 104 104 100 90 94 Q1-Q3 80 Q1-Q4 60 40 20 0 2016 2017 2018 The target level is indicated by dashed line. Q3, October 25, 2018
Slide 7: Net sales by quarter
Net sales by quarter Net sales by quarter MEUR In Q3, net sales increased 140 132 133 136 by 7% and were EUR 136.3 125 124 127 116 118 119 (127.2) million. 120 115 Q1 99 100 Q2 80 Q3 60 Q4 The biggest market area, 40 Russia, Ukraine and other CIS countries, grew by 6%. 20 0 2016 2017 2018 Q3, Octobe
Slide 8: Aspo represents a balanced entity
Aspo represents a balanced entity Net sales by segment Q3 2018 Net sales by market area Q3 2018 8% 13% Finland 44,6 MEUR 22% ESL Shipping 30,6 MEUR 33% Scandinavia 15,8 MEUR Leipurin 28,0 MEUR Baltic countries 13,1 MEUR Telko 67,3 MEUR 33% Russia, Ukraine and other 49% 21% Kauko 10,4 MEUR CIS-countr
Slide 9: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR In the eastern markets, net 50.0 46.2 45.6 sales increased by 6% in 45.0 42.0 43.2 42.3 Q3. 38.1 38.9 39.3 40.1 40.0 Q1 The devaluation of local 35.0 32.6 Q2 currencies in eastern 30.0 26.6 markets decelerated the Q3 increase of net sales. 25.0
Slide 10: ESL Shipping
ESL Shipping ESL Shipping Johtava merilogistiikan tuottaja irtolasteille Leading marine logistics provider for bulk cargo. Q3, October 25, 2018
Slide 11: ESL Shipping
ESL Shipping During the third quarter, the acquisition of Net sales increased notably to EUR 30.6 (18.3) AtoB@C was completed and new, the world’s million. most environmentally friendly, LNG-fueled dry bulk cargo vessels were received. AtoB@C is included in the figures starting from September. Opera
Slide 12: ESL Shipping acquired AtoB@C, a Swedish shipping company
ESL Shipping acquired AtoB@C, a Swedish shipping company AtoB@C is engaged in the shipping AtoB@C owns six dry bulk cargo vessels business with a fleet of 30 vessels of in full, and it has a share of 49% of two 4,000–5,000 dwt. vessels. The other 22 vessels are time- chartered. In 2017, AtoB@C’s net
Slide 13: ESL Shipping key figures Q3
ESL Shipping key figures Q3 Net sales MEUR Net sales increased by 35 67% and were EUR 30.6 30.6 30 million (18.3). Q1 25 22.6 22.6 20.6 20.5 Q2 20 18.9 19.5 18.3 17.9 Transportation volumes in 16.2 16.7 Q3 15 the steel industry increased Q4 significantly in the third 10 quarter. 5 Loading and unload
Slide 14: ESL Shipping key figures Q3
ESL Shipping key figures Q3 Operating profit MEUR In Q3, operating profit 5 increased by 21% and was 4.5 4.1 4.1 4.3 EUR 4.0 million (3.3). 4.0 4 Q1 3.5 3.4 3.3 2.9 3.0 3.1 Q2 3 2.6 Q3 2.5 2.2 2 Q4 Profitability improved as a result of higher 1.5 transportation volumes and 1 successful operations, 0
Slide 15: Baltic Dry Index 2014‒2018
Baltic Dry Index 2014‒2018 Source: Bloomberg Q3 25.10.2018
Slide 16: Leipurin
Leipurin From bread and recipes to a comprehensive selection Q3, October 25, 2018
Slide 17: Leipurin
Leipurin The prices of raw materials important to Net sales decreased by 6% to EUR 28.0 Leipurin showed variation from one raw (29.9) million. material group to another. All in all, prices The decrease resulted from variation in the were close to the level of the comparative installation schedules o
Slide 18: Leipurin key figures Q3
Leipurin key figures Q3 Net sales MEUR Net sales decreased and 35 were EUR 28.0 million 32.9 30.7 30.2 31.2 (29.9). 28.8 29.4 30.1 29.9 30 27.0 28.0 The decrease in the net 26.2 Q1 25 sales were mainly due to Q2 the divestment carried out 20 in the comparative period. Q3 15 Q4 10 In the eastern mark
Slide 19: Leipurin key figures Q3
Leipurin key figures Q3 Operating profit MEUR Operating profit decreased 1.6 and was EUR 0.8 million (1.4). 1.4 Operating profit rate was 2.9% 1.4 (4.7). Q1 1.2 Main reasons were installation 1.0 Q2 schedules in machinery 0.9 0.8 0.8 operations and a sales gain 0.8 Q3 0.7 0.7 from business divestmen
Slide 20: Net sales in Russia, Ukraine and other CIS countries
Net sales in Russia, Ukraine and other CIS countries Net sales in the market area Net sales of the Russian company MEUR MRUB 12.0 600 562 493 534 10.3 514 10.0 9.6 500 484 478481 448 456452 8.6 Q1 435 8.3 8.1 8.3 8.2 Q1 8.0 7.7 7.7 400 7.2 Q2 Q2 6.1 6.0 Q3 300 Q3 Q4 Q4 4.0 200 2.0 100 0.0 0 2016 201
Slide 21: Telko
Telko Raw material solutions for the industry Q3, October 25, 2018
Slide 22: Telko
Telko Telko’s operating environment mainly remained Telko’s net sales remained at the comparative unchanged. period’s level and were EUR 67.3 (67.3) million. The prices of chemicals and plastics have The increase in net sales was limited by problems remained stable and at a good level. Prices involv
Slide 23: Telko key figures Q3
Telko key figures Q3 Net sales MEUR 80 Net sales remained unchanged 71.7 and were 70 67.3 65.6 67.3 62.2 63.8 64.9 63.6 65.7 EUR 67.3 million (67.3). 57.7 Q1 60 49.4 Q2 Increase in net sales have 50 been limited by problems in 40 Q3 the availability of the products 30 Q4 as well as the devaluation o
Slide 24: Telko key figures Q3
Telko key figures Q3 Operating profit MEUR In Q3, operating profit decreased and were EUR 2.9 4.0 3.6 million (3.1). 3.5 3.0 3.1 3.0 2.9 Q1 Operating profit decreased 3.0 2.5 Q2 because of the problems in the 2.5 2.3 2.3 2.3 2.4 2.2 availability of the products and 2.0 Q3 devaluation of the currenci
Slide 25: Net sales in Russia, Ukraine and other CIS countries
Net sales in Russia, Ukraine and other CIS countries Net sales in the market area Net sales of the Russian company MEUR MRUB 40.0 1400 35.3 34.8 1195 35.0 33.5 1200 1155 1149 31.431.5 30.4 31.0 1029 30.0 28.6 28.7 Q1 1005 982 1000 946 967 Q1 888 25.0 24.0 Q2 794 Q2 800 20.0 19.3 Q3 680 Q3 600 15.0 Q
Slide 26: Kauko
Kauko Best tools for mobile knowledge work Q3, October 25, 2018
Slide 27: Kauko
Kauko Net sales decreased by 11% to EUR 10.4 Operating profit was EUR 0.7 million (0.2) . million (11.7) . The operating profit improved as a result The comparative period included project of financial cuts and higher delivery deliveries related to the discontinued volumes of computers and energy- b
Slide 28: Kauko key figures Q3
Kauko key figures Q3 Net sales Net sales decreased and MEUR were EUR 10.4 million 14 (11.7). 12 11.7 11.3 10.4 Q1 10 9.5 8.5 8.5 Q2 8.3 8 6.7 7.1 6.9 7.2 Q3 6 Q4 4 2 0 2016 2017 2018 Q3, October 25, 2018
Slide 29: Kauko key figures Q3
Kauko key figures Q3 Operating profit Operating profit increased MEUR and was EUR 0.7 million 0.8 0.7 (0.2). 0.6 0.5 0.4 Q1 0.2 0.2 0.1 Q2 0.0 0.0 0.0 The operating profit is not Q3 -0.2 at the target level. Q4 -0.4 -0.3 -0.3 -0.4 -0.6 -0.5 -0.6 -0.8 2016 2017 2018 Q3, October 25, 2018
Slide 30: General outlook for the markets in 2018
General outlook for the markets in 2018 • International economy is expected to continue the growth. • Industrial production is expected to increase in the main market Industrial production is areas of Aspo’s business operations in Northern Europe. expected to grow in Aspo’s • General political risks
Slide 31: Guidance for 2018
Guidance for 2018 Remains unchanged: Aspo’s operating profit will be EUR 25-31 million (23.1) in 2018. Q3, October 25, 2018 31
Slide 32: Additional material
Additional material Q3, October 25, 2018
Slide 33: Net cash from operating activities
Net cash from operating activities MEUR 20.0 17.4 Net cash from operating 16.2 activities increased to EUR 15.0 7.6 million (5.7). Q1 10.0 7.6 5.7 Q1-Q2 5.0 3.5 Q1-Q3 0.0 -1.2 -1.2 Q1-Q4 Investments carried out in Q3 -2.5 -5.0 -3.2 have still strengthened -10.0 -7.0 Aspo’s ability to produce -11.0 c
Slide 34: Equity ratio and gearing
Equity ratio and gearing % % 45 180 Gearing at Aspo Group 40 160 was 155% (110). 35 140 30 120 25 100 20 80 15 60 Investment in two new dry 10 40 bulk cargo vessels and the 5 20 acquisition of AtoB@C had 0 0 an impact on Aspo’s capital Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/1
Slide 35: Structure of liabilities
Structure of liabilities Interest bearing liabilities Interest bearing liabilities September 30, 2017: 139 MEUR September 30, 2018: 198 MEUR 3% 6% 8% 3% 5% 6% Loans Loans 3% 19% Commercial papers Commercial papers Others Others TyEL pension loan TyEL pension loan Bond Bond 69% 78% Q3, October 25, 20
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 90.0 At the end of the review 80.0 1.4 period, the average interest rate of interest bearing 70.0 25.0 liabilities was 1.5%. 60.0 TyEL pension loan . 50.0 Bond 20.0 40.0 1.4 Hybrid bond (call) The amount of interest 30.0 20.0 1.4 Revolving credit bearing
Slide 37: Shareholders / allocation
Shareholders / allocation Number of shareholders Distribution of ownership on September 30, 2018 by ownership group, % 9,600 9,346 4% 9,400 9,236 9,200 9,060 8,929 20% Institutions 9,000 8,800 Group Executive Commitee 8,600 1% Board 8,400 8,200 8,150 Private investors 53% 22% 8,000 Non-domestic& nom