Slide 1: Aspo’s year 2017 and Q4
Aspo’s year 2017 and Q4 February 15, 2018 CEO Aki Ojanen Group Treasurer Harri Seppälä
Slide 2: Aspo’s year 2017
Aspo’s year 2017 Net sales reached the Operating profit was EUR Earnings per share milestone of EUR 500 23.1 million (20.4). increased to EUR 0.56 million. (0.49). Operating profit increased Net sales increased by 10%. by 13%. A turn for better in Board of Director’s Guidance for 2018: operating env
Slide 3: Operating profit 2017 increased significantly
Operating profit 2017 increased significantly Operating profit MEUR In 2017, operating profit 28 was EUR 23.1 million (20.4). 24 23.1 Items affecting 20.6 20.4 Q1 comparability total EUR -1.0 20 million. 16.6 Q1-Q2 16 14.4 14.1 Q1-Q3 12 In Q4, operating profit was 9.5 8.1 Q1-Q4 EUR 6.5 million (6.3)
Slide 4: Long-term financial targets
Long-term financial targets Operating profit, % % In 2017, operating profit 8 rate improved to 4.6% (4.5). 7 Q1 6 Q1-Q2 5 4.4 4.6 4.5 4.5 4.6 4.2 Q1-Q3 4 3.8 3.7 3.9 3.3 3.4 2.9 Q1-Q4 In Q4, operating profit rate 3 decreased to 4.9% (5.1). 2 1 The target level is 7% by 0 2020. 2015 2016 2017 Q4 Febr
Slide 5: Long-term financial targets
Long-term financial targets Return on equity, (ROE) % In 2017, ROE improved 28 26.2 significantly from the 24 comparative period and was 20.1 20.8 Q1 17.1% (14.6). 20 19.1 16.717.1 Q1-Q2 16 14.6 14.6 13.4 13.4 Q1-Q3 12 11.0 In 2015, ROE was improved 8.9 Q1-Q4 by a sales gain from the sale 8 of share
Slide 6: Net sales and operating profit 2013–2017
Net sales and operating profit 2013–2017 MEUR MEUR Net sales Operating profit Net sales reached a new 600 50 record, being EUR 502 476.3 482.9 502.4 million. Net sales grew in all 500 457.4 445.8 40 operations. Geographically 400 strongest growth in the 30 Baltic countries and 300 eastern markets. 2
Slide 7: Long-term financial targets
Long-term financial targets Gearing % Gearing increased to 140 103.9% (89.8). 119 115 120 114 109 110 100 105 101 104 104 Q1 100 94 90 Q1-Q2 80 Q1-Q3 60 The target level is up to Q1-Q4 100% by 2020. 40 20 0 2015 2016 2017 Q4 February 15, 2018 7 The target level is indicated by the dashed line.
Slide 8: Aspo represents a balanced entity
Aspo represents a balanced entity Net sales by segment 2017 Net sales by market area 2017 8% 13% Finland 160,8 MEUR 16% ESL Shipping 79,3 MEUR 32% Scandinavia 50,6 MEUR Leipurin 122,3 MEUR Baltic countries 58,8 MEUR 24% Telko 262,2 MEUR 33% 52% Kauko 38,6 MEUR Russia, Ukraine + other CIS 10% 164,9 M
Slide 9: Net sales 2013–2017
Net sales 2013–2017 Russia, Ukraine + other CIS MEUR 180 The euro-denominated net 164.9 sales in eastern markets 160 153.0 153.0 145.6 have increased since 2015. 140 128.3 120 In 2017, growth was 13%. 100 80 Market area Russia, Ukraine + other CIS is the largest 60 market area of Aspo. 40 Leipurin g
Slide 10: Profitable growth in Russia
Profitable growth in Russia Net sales of Aspo Russian companies MRUB 7,000 Annual net sales 6,000 growth 14% on 5,000 average 4,000 3,000 2,000 1,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net sales, MRUB Q4 February 15, 2018 10
Slide 11: ESL Shipping
ESL Shipping ESL Shipping Johtava merilogistiikan tuottaja irtolasteille Leading marine logistics provider for bulk cargo Q4 February 15, 2018 11
Slide 12: ESL Shipping
ESL Shipping Q4 International sea freight rates increased. Net sales increased by 10% to EUR 22.6 Cargo price levels are low when examined million (20.6). in the long term. Net sales increased as a result of growing Profitability is based on special expertise cargo volumes, stronger US dollar as wel
Slide 13: ESL Shipping key figures Q4
ESL Shipping key figures Q4 Net sales MEUR Net sales increased by 10% 25 22.6 to 22.6 million (20.6). 19.9 19.9 20.6 The growth was mainly due 20 18.9 19.5 18.3 18.2 18.2 17.9 Q1 to increased vessel 16.2 16.7 capasity. Q2 15 Q3 10 Q4 Transportation volumes in the steel and energy 5 industries decrea
Slide 14: ESL Shipping key figures Q4
ESL Shipping key figures Q4 Operating profit MEUR Operating profit was EUR 5 4.1 million (4.1). 4.4 4.5 4.5 4.1 4.1 The number of off hire days 4 Q1 was exceptionally high. 3.5 3.3 3.4 3.3 2.9 3.0 3.1 Q2 3 2.5 Q3 2.5 2.2 2 Q4 The loading and unloading operations was particulary 1.5 busy. Strong wind
Slide 15: Baltic Dry Index 2013‒2017
Baltic Dry Index 2013‒2017 Source: Bloomberg Q4 February 15, 2018 15
Slide 16: Leipurin
Leipurin From bread and recipes to a comprehensive selection Q4 February 15, 2018 16
Slide 17: Leipurin
Leipurin Q4 The consumer purchasing power turned to Net sales increased by 7% to EUR 32.9 an increase in Russia which improved the million (30.7). demand of high quality bread. In western Net sales increased especially in machine markets, the demand for packed bread will operations, in eastern marke
Slide 18: Leipurin key figures Q4
Leipurin key figures Q4 Net sales MEUR Net sales increased to EUR 35 31.5 32.9 32.9 million (30.7). 30.7 30 29.7 28.8 29.4 30.1 29.9 28.3 28.3 27.0 26.2 Q1 In eastern markets, net 25 Q2 sales increased by 15%. 20 Q3 15 In western markets, net Q4 sales were decreased by 10 lower demand for industrial
Slide 19: Leipurin key figures Q4
Leipurin key figures Q4 Operating profit MEUR Operating profit was EUR 1.6 0.7 million (0.7). 1.4 1.4 Operating profit includes 1.2 Q1 items affecting Q2 comparability, EUR -0,5 1 0.8 million. 0.8 Q3 0.7 0.7 0.7 0.6 The operative profitability 0.6 0.5 0.5 Q4 has developed well in both 0.4 0.4 0.4 0.
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 12.0 700 10.3 9.6 600 573 562 10.0 9.1 534 8.3 8.1 8.3 Q1 493 484 Q1 8.0 500 8.0 7.7 403 435 448 456452 7.1 7.2 Q2 404 404 Q2 6.3 400 6.1 6.0 Q3 Q3 300 Q4 Q4 4.0 200 2.0 100 0
Slide 21: Telko
Telko Raw material solutions for the industry Q4 February 15, 2018 21
Slide 22: Telko
Telko Q4 The general development in the market Net sales were EUR 65.6 million (64.9). environment has continued to be positive. Price levels remained stable in general, In 2017, net sales reached a new record. while that of technical plastics and industrial chemicals were higher than in the compara
Slide 23: Telko key figures Q4
Telko key figures Q4 Net sales MEUR Net sales were at the 80.0 comparative period’s level, 70.0 64.9 63.6 65.7 67.3 65.6 EUR 65.6 million (64.9). 62.2 63.8 Q1 60.0 55.2 56.5 53.6 50.0 49.4 Q2 50.0 40.0 Q3 Q4 The measures to improve 30.0 efficiency of operations 20.0 slowed down the growth. 10.0 The
Slide 24: Telko key figures Q4
Telko key figures Q4 Operating profit MEUR In Q4, operating profit 3.5 3.2 increased by 20% to EUR 3.1 3.0 3.0 3.0 3.0 3.0 million (2.5). 2.5 Q1 Operating profit increased 2.5 2.4 2.3 2.3 2.3 2.3 especially in western Q2 2.0 1.9 markets. Q3 1.5 Q4 In 2017, operating profit increased by 7%. 1.0 0.5 0
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 35.0 33.5 1200 1155 31.4 31.5 30.4 31.0 30.0 28.6 28.7 Q1 1005 1029 27.0 946 982 967 Q1 1000 24.2 25.0 870 864 888 25.0 Q2 Q2 800 19.4 19.3 Q3 691706 680 20.0 Q3 600
Slide 26: Kauko
Kauko Best tools for mobile knowledge work Q4 February 15, 2018 26
Slide 27: Kauko
Kauko Q4 In the energy sector, the growth of solar Net sales increased to EUR 11.3 million power products was strong. (8.3). Special rugged computers and tablets Revenue from project operations to be increased their share of sales. discontinued in China increased net sales. Operating profit was EUR
Slide 28: Kaukon key figures Q4
Kaukon key figures Q4 Net sales Net sales increased to EUR MEUR 11.3 million (8.3). 18 17.1 Revenue from project 16 operations from China Q1 14 increased net sales. 11.7 11.3 Q2 12 10 9.5 Q3 8.5 8.3 8.5 Mobile knowledge work and 8 7.1 6.8 7.1 6.7 Q4 solar power systems 6 5.5 increased their net sale
Slide 29: Kaukon key figures Q4
Kaukon key figures Q4 Operating profit was EUR Operating profit 0.0 million (0.0). In mobile MEUR knowledge work, 1.0 investments in application 0.6 0.5 0.5 solutions decelerated the 0.1 0.1 0.0 0.1 0.2 0.0 development of operating 0.0 Q1 profit. -0.5 -0.3 -0.3 Q2 -0.5 Q3 In 2017, a EUR 0.3 million
Slide 30: Financials and financing
Financials and financing Harri Seppälä Q4 February 15, 2018 30
Slide 31: Income statement 2017
Income statement 2017 MEUR Q1-Q4/2017 Q1-Q4/2016 Net sales growth of 10% came Net sales 502.4 457.4 from all segments and market Ebitda 35.0 32.0 areas. Depreciation, amortization and -11.9 -11.6 impairment losses Ebitda rate remained Operating profit 23.1 20.4 unchanged. Operating profit Financial
Slide 32: Net cash from operating activities
Net cash from operating activities MEUR 30.0 Net cash from operating 25.0 25.0 activities increased from the 20.0 comparative period to EUR 16.2 17.4 Q1 17.4 million (16.2). 15.0 10.7 Q1-Q2 Change in working capital 10.0 5.7 was EUR -12.6 million (-10.6). 5.0 3.5 Q1-Q3 0.0 Q1-Q4 In H2, net cash from
Slide 33: Equity ratio and gearing
Equity ratio and gearing % % 39 140 Gearing was 104% and 38 equity ratio was 36%. 120 37 100 36 35 80 34 60 33 40 Cash flow from investing 32 20 activities was EUR -16.6 31 million (-6.1) mostly 30 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 consisting of advance paymen
Slide 34: Structure of liabilities
Structure of liabilities Interest bearing liabilities Interest bearing liabilities December 31, 2016: 125 MEUR December 31, 2017: 137 MEUR 9% 8% 7% 5% Loans 4% Loans 5% 3% Commercial papers Commercial papers Others Others TyEL pension loan TyEL pension loan Bond Bond 79% 80% Q4 February 15, 2018 34
Slide 35: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 The average interest rate of interest bearing liabilities 60.0 1.4 1.4 was 1.8% (12/2016: 1.8). 50.0 25.0 TyEL pension loan 40.0 40.0 Bond Hybrid bond (call) 30.0 Revolving credit facilities In 2018, financing 1.4 Loans 20.0 1.4 1.4 37.5 agreements o
Slide 36: Personnel, December 31, 2017, total 909
Personnel, December 31, 2017, total 909 Personnel by segment Personnel by geographical area 350 500 315 436 450 300 288 400 250 350 327 235 300 200 250 150 200 100 150 100 75 46 50 50 51 25 20 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 ESL Shipping Leipurin Telko Finland Scandinavia Kauko
Slide 37: Aspo market value
Aspo market value Share price development (closing price) Market value of shares EUR MEUR 11.00 350 10.00 300 9.00 8.00 250 7.00 6.00 200 5.00 150 4.00 3.00 100 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Q4 February 15, 2018 38
Slide 38: Dividend proposal 2017
Dividend proposal 2017 The Board of Directors’ Dividend will be paid Dividend distribution dividend proposal: in two installments: policy: EUR 0.43 / share EUR 0.21 / share in At least half of the April annual profit EUR 0.22 / share in distributed in November dividends on average. Q4 February 15, 2
Slide 39: Dividend and dividend yield
Dividend and dividend yield EUR % 0.60 12 Dividend yield of Aspo, 0.50 10 average 0.40 8 2006‒2017 0.30 6.1 % 6 0.20 4 Dividend yield of 0.10 Helsinki Stock 2 0.00 Exchange, average -0.10 0 2006‒2017 Dividend, EUR Aspo, Dividend yield Helsinki, Dividend yield 3.6 % Q4 February 15, 2018 * Repayment o
Slide 40: General outlook for markets in 2018
General outlook for markets in 2018 • General uncertainty in the markets has decreased. Positive trend and growing • Industrial production is expected to increase in Aspo’s industrial production in main market areas. Aspo’s main markets. • The prices of raw materials are expected to strengthen. • Po
Slide 41: Guidance for 2018
Guidance for 2018 Aspo’s operating profit will be EUR 25-31 million (23.1) in 2018. Q4 February 15, 2018 42