Slide 1: Aspo Q2
Aspo Q2 August 14, 2018 CEO Aki Ojanen
Slide 2: Aspo Q2
Aspo Q2 Record-high operating Net sales increased by 7% ESL Shipping announced profit in H1 and Q2. to EUR 132.7 (123.8) that it will acquire AtoB@C, million. a Swedish shipping Earnings per share in Q2 Operating profit improved company. The acquisition is increased by 112.5% to by 39% to EUR 7.1 (5
Slide 3: Operating profit
Operating profit Operating profit MEUR In Q2, operating profit 28 improved by 39% and was 23.1 EUR 7.1 million (5.1). 24 20.4 Q1 20 16.6 Q1-Q2 16 14.1 Q1-Q3 12 10.8 All three of our largest 9.5 8.1 Q1-Q4 businesses improved their 8 operating profit 4.4 3.7 4 3.3 significantly. 0 2016 2017 2018 Q2, A
Slide 4: Long-term financial targets: Operating profit %
Long-term financial targets Operating profit, % % In Q2, operating profit rate 8 improved and was 7 5.4% (4.1). Q1 6 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 the dashed line. Q2, August 14 , 2018
Slide 5: Long-term financial targets: Return on equity
Long-term financial targets Return on equity, (ROE) % In H1, ROE weakened and 20 was 13.5% (14.6). 16.717.1 16 14.6 Q1 13.4 14.6 Target level is on average 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 Q2, August 14 , 2018 The target level is indicated by the das
Slide 6: Long-term financial targets: Gearing
Long-term financial targets Gearing % In H1, gearing increased and 140 was 119 % (114). 119 120 109 115 114 110 104 103 Q1 104 Target level is up to 100% by 100 90 94 Q1-Q2 2020. 80 Q1-Q3 60 Q1-Q4 40 20 0 2016 2017 2018 The target level is indicated by the dashed line. Q2, August 14 , 2018
Slide 7: Net sales by quarter
Net sales by quarter Net sales by quarter MEUR In Q2, net sales increased 140 132 133 125 124 127 by 7% and were 116 118 119 EUR 133 million (124). 120 115 Q1 99 100 All three of our largest Q2 80 businesses grew. Kauko’s Q3 net sales decreased. 60 Q4 The biggest market area, 40 Russia, Ukraine + ot
Slide 8: Aspo represents a balanced entity
Aspo represents a balanced entity Net sales by segment Q2 2018 Net sales by market area Q2 2018 5% 17% 12% Finland 39.6 MEUR ESL Shipping 22.6 MEUR 30% Scandinavia 14.3 MEUR Leipurin 31.2 MEUR Baltic countries 16.8 MEUR Telko 71.7 MEUR 24% 35% 54% Kauko 7.2 MEUR Russia, Ukraine and other 11% CIS-cou
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 sales increased by 15%. 45.0 42.0 43.2 42.3 38.1 38.9 39.3 40.1 Q1 40.0 In Baltic countries, net 35.0 32.6 Q2 sales increased by 20%. 30.0 26.6 Q3 25.0 20.0 Q4 In the eastern markets, net sales increased as
Slide 10: ESL Shipping
ESL Shipping ESL Shipping Johtava merilogistiikan tuottaja irtolasteille Leading marine logistics provider for bulk cargo Q2, August 14 , 2018
Slide 11: ESL Shipping
ESL Shipping The general market prices for dry bulk Net sales increased by 16% to EUR 22.6 cargo remained stable in the vessel (19.5) million as a result of increases in categories in which the shipping company transport volumes, vessel capacity and operates. fuel prices. Cargo prices were at a rela
Slide 12: ESL Shipping will acquire AtoB@C, a Swedish shipping company
ESL Shipping will acquire AtoB@C, a Swedish shipping company AtoB@C is engaged in the shipping AtoB@C owns six dry cargo vessels in full, business with 30 vessels in size of and it has a share of 49% of two vessels. 4,000–5,000 tons. The other 22 vessels are time-chartered. In 2017, AtoB@C’s net sal
Slide 13: ESL Shipping key figures Q2: Net sales
ESL Shipping key figures Q2 Net sales MEUR Net sales increased by 16% 25 22.6 22.6 from the comparative 20.6 20.5 period and was 20 18.9 19.5 18.3 EUR 22.6 million (19.5). 17.9 Q1 16.2 16.7 Q2 15 Q3 In the second quarter, ESL 10 Q4 Shipping carried significantly more cargo 5 than in the comparative
Slide 14: ESL Shipping key figures Q2: Operating profit
ESL Shipping key figures Q2 Operating profit MEUR Operating profit for the 5 second quarter increased 4.5 4.1 4.1 4.3 by 39% and was EUR 4.3 4 Q1 million (3.1). 3.4 3.5 3.3 Operating profit was 2.9 3.0 3.1 Q2 3 2.6 record-high for Q2. Q3 2.5 2.2 Profitability improved as a 2 Q4 result of higher tran
Slide 15: Baltic Dry Index 2014‒2018
Baltic Dry Index 2014‒2018 Source: Bloomberg Q2, August 14 , 2018
Slide 16: Leipurin
Leipurin From bread and recipes to a comprehensive selection Q2, August 14 , 2018
Slide 17: Leipurin
Leipurin The prices of raw materials important to Net sales increased by 4% to EUR 31.2 Leipurin showed variation from one raw (30.1) million. material group to another. All in all, prices During the second quarter, the sales of were close to the level of the comparative machinery operations in Finl
Slide 18: Leipurin key figures Q2: Net sales
Leipurin key figures Q2 Net sales MEUR Net sales increased and 35 32.9 were EUR 31.2 million 30.7 31.2 29.4 30.1 29.9 30.2 (30.1). 30 28.8 26.2 27.0 Q1 Leipurin’s machinery 25 operations was the most Q2 20 significant growth factor. Q3 15 Net sales of the raw material Q4 operations in the western 10
Slide 19: Leipurin key figures Q2: Operating profit
Leipurin key figures Q2 Operating profit MEUR Operating profit increased 1.6 by 50% and was EUR 0.9 1.4 1.4 million (0.6). Q1 1.2 1.0 Q2 0.9 0.8 0.8 Q3 0.7 0.7 0.6 In eastern markets, 0.6 0.5 Q4 operating profit rate of 0.4 0.4 0.4 0.4 raw material operations 0.2 was 7% (6). 0.0 2016 2017 2018 Q2, A
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 10.0 9.6 500 484 478481 448 456452 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 2017 2018 2
Slide 21: Telko
Telko Raw material solutions for the industry Q2, August 14 , 2018
Slide 22: Telko
Telko Telko’s operating environment remained During Q2, Telko’s net sales grew by 9% unchanged or improved in some countries. In from the comparative period to an all-time eastern markets, the general economic high of EUR 71.7 (65.7) million. situation has been characterized by the transition to the
Slide 23: Telko key figures Q2: Net sales
Telko key figures Q2 Net sales MEUR 80 Net sales increased and 71.7 were EUR 71.7 million 70 67.3 65.6 62.2 63.8 64.9 63.6 65.7 (65,7). 57.7 Q1 60 49.4 Q2 The increase in net sales 50 during Q2 was supported by 40 Q3 the unusually cold weather in Q4 Russia and Ukraine during Q1. 30 The spring season
Slide 24: Telko key figures Q2: Operating profit
Telko key figures Q2 Operating profit MEUR In Q2, operating profit 4.0 improved by 50 % and was 3.6 EUR 3.6 million (2.4), a one- 3.5 3.1 3.0 quarter record for Telko. 3.0 Q1 3.0 2.5 Q2 2.5 2.3 2.3 2.3 2.4 2.2 Operating profit rate was 2.0 Q3 5.0% (3.7). 1.5 Q4 1.0 Profitability improved, for exampl
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 35.0 1195 33.5 1200 1155 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 Q4 Q4 400 1
Slide 26: Kauko
Kauko Best tools for mobile knowledge work Q2, August 14 , 2018
Slide 27: Kauko
Kauko Net sales decreased by 15% to EUR 7.2 Operating result stood at EUR -0.4 (0.1) (8.5) million. million. The loss-making application business was The decrease of net sales mainly discontinued during Q2. concerned energy efficiency equipment Severance pay was paid to the former and healthcare sol
Slide 28: Kauko key figures Q2: Net sales
Kauko key figures Q2 Net sales Net sales decreased and MEUR were EUR 7.2 million (8.5). 14 12 11.7 11.3 Q1 10 9.5 Q2 8.5 8.3 8.5 8 6.7 7.1 6.9 7.2 Q3 6 Q4 4 2 0 2016 2017 2018 Q2, August 14 , 2018
Slide 29: Kauko key figures Q2: Operating profit
Kauko key figures Q2 Operating profit MEUR 0.6 0.5 Operating profit decreased 0.4 to EUR -0.4 million (0.1). 0.2 Q1 0.2 0.1 0.0 0.0 Q2 0.0 -0.2 Q3 Q4 -0.4 -0.3 -0.3 Operating profit is not at -0.4 -0.6 -0.5 the target level. -0.6 -0.8 2016 2017 2018 Q2, August 14 , 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 Industrial production is market areas of Aspo’s business operations in Northern expected to grow in Aspo’s Europe. main markets. • General p
Slide 31: Guidance for 2018
Guidance for 2018 Remains unchanged: Aspo’s operating profit will be EUR 25-31 million (23.1) in 2018. Q2, August 14 , 2018
Slide 32: Additional material
Additional material Q2, August 14 , 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 weakened to EUR 15.0 -1.2 million (3.5). Q1 10.0 5.7 Q1-Q2 5.0 3.5 Q1-Q3 0.0 -1.2 -1.2 Q1-Q4 Working capital was mainly -2.5 -5.0 -3.2 tied in the growth of Telko’s -10.0 -7.0 business. -11.0 -15.0 2016 2017 20
Slide 34: Equity ratio and gearing
Equity ratio and gearing % % 39 140 Gearing at Aspo Group was 38 120 118.6%. 37 36 100 35 80 34 33 60 32 During H2, the capital 40 structure of the Aspo Group 31 20 will be impacted both by the 30 shipping company’s 29 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 investment in two n
Slide 35: Structure of liabilities
Structure of liabilities Interest bearing liabilities Interest bearing liabilities June 30, 2017: 137 MEUR June 30, 2018: 146 MEUR 8% 8% 5% 6% 4% 6% Loans Loans 0% Commercial papers Commercial papers Others Others 18% TyEL pension loan TyEL pension loan Bond 65% Bond 80% Q2, August 14 , 2018
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 At the end of the review period, the average interest 60.0 1.4 1.4 rate of interest bearing 50.0 liabilities was 1.6%. 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
Slide 37: Shareholders / allocation
Shareholders / allocation Number of shareholders Distribution of ownership on June 30, 2018 by ownership group, % 9,400 9,236 9,192 5% 9,200 9,060 9,000 8,929 22% Institutions 8,800 Group Executive Commitee 8,600 1% 8,400 Board 8,200 8,150 Private investors 50% 8,000 22% Non-domestic & nominee 7,800