Slide 1: Aspo's Q2
Aspo’s Q2 August 18, 2014 CEO Aki Ojanen CFO Arto Meitsalo Group Treasurer Harri Seppälä
Slide 2: Aspo's strategy
Aspo’s strategy • Aspo is a conglomerate that owns and continually develops its business operations and structure without predefined schedules. • Business operations focusing on B-to-B customers. • Business operations in northern Europe and growth markets. • Company brands: ESL Shipping, Leipurin, T
Slide 3: Initial public offering on Leipurin
Initial public offering on Leipurin • Aspo is reviewing the preconditions for initial public offering of Leipurin Ltd as a separate company on the NASDAQ OMX Helsinki official list. • Aspo would remain as minority owner of the company. • A preliminary IPO readiness assessment has been made and the l
Slide 4: Aspo Q2/2014
Aspo Q2/2014 • Operating profit grew significantly to EUR 6.3 million (1.5). • The operating profit percentage was 5.1% (1.2). • Aspo Group's net sales fell slightly to EUR 122.7 million (123.6). • Earnings per share grew significantly to EUR 0.17 (0.02). • Aspo amended its guidance on August 4, 201
Slide 5: Key reasons for the profit improvement
Key reasons for the profit improvement • ESL Shipping's result improved due to new customers and loading and unloading functions at sea. • Telko's result has remained good in the Russian, Ukrainian and other CIS countries. Sales margins have improved. • Leipurin's result developed as expected. In th
Slide 6: Russia, Ukraine, and other CIS countries 1–6/2014
Russia, Ukraine, and other CIS countries 1–6/2014 • Aspo had already decreased Telko's currency and operational risk in Ukraine in fall 2013 due to the weak situation of Ukrainian state finances. • The crisis between Ukraine and Russia has weakened the region's currencies and reduced economic growth
Slide 7: Group net sales, quarterly
Group net sales, quarterly MEUR 140 123.0 123.6 122.7 120 100 80 60 40 20 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 7
Slide 8: Group operating profit, quarterly
Group operating profit, quarterly MEUR 7 6.3 6 5 4 3.8 3 2 1.5 1 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 8
Slide 9: Net sales and operating profit Q2
Net sales and operating profit Q2 2013/2014 Q1 Q2 Q3 Q4 Cum. Net sales 108.0 122.7 230.7 MEUR 112.3 123.6 120.1 120.3 476.3 Operating profit 3.8 6.3 10.1 MEUR 0.9 1.5 4.6 3.8 10.8 9
Slide 10: Net sales / segment Q2
Net sales / segment Q2 MEUR 140 Change, % 123.6 -1% 122.7 4% 120 100 -2% 80 60 -1% 40 20 2% 0 Q2/2013 Q2/2014 ESL Shipping Leipurin Telko Kaukomarkkinat 10
Slide 11: Operating profit / segment Q2
Operating profit / segment Q2 MEUR Q2/14 Q2/13 Change, % ESL Shipping 2.7 1.2 125 Leipurin 1.9 1.2 58 Telko 3.2 1.6 100 Kaukomarkkinat 0.0 -1.1 100 Other operations -1.5 -1.4 -7 Total 6.3 1.5 320 11
Slide 12: Net sales / market area Q2
Net sales / market area Q2 MEUR Q2/14 Q2/13 Change, % Finland 38.3 36.1 6 Scandinavia 12.0 11.0 9 Baltic countries 14.7 13.0 13 Russia, Ukraine + other CIS 41.7 41.6 0 Other countries 16.0 21.9 -27 Total 122.7 123.6 -1 12
Slide 13: Aspo's countries of operation
Aspon countries Aspo’s toimipisteet of operation 13
Slide 14: Net sales, quarterly: Russia, Ukraine + other CIS countries
Net sales, quartely Russia, Ukraine + other CIS countries MEUR 50 45 42.2 41.6 41.7 40 35 30 25 20 15 10 5 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 14
Slide 15: Market situation: MICEX Index and EUR/RUB development
Market situation MICEX Index and EUR/RUB development 1800 44 1700 45 1600 46 1500 47 EUR/RUB MICEX 1400 48 1300 49 1200 50 1100 51 1000 52 Apr-14 May-14 Feb-14 Jan-14 Mar-14 Jun-14 MICEX (LHS) EUR/RUB (RHS) Source: Factset 15
Slide 16: Aspo business operations
R ASPO Aspo business operations
Slide 17: Integral part of Finnish security of supply
Integral part of Finnish security of supply
Slide 18: ESL Shipping Q2/2014
ESL Shipping Q2/2014 • The freight rate index of dry bulk cargo continued to fall from the previous quarter and is at a very low level. • During the review period, the vessels mainly operated in the Baltic Sea, the North Sea, and in North America. • Loading and unloading at sea increased year-on-yea
Slide 19: ESL Shipping key figures Q2
ESL Shipping key figures Q2 Q2/14 Q2/13 Change, % Net sales, MEUR 19.2 18.8 2 Operating profit, MEUR 2.7 1.2 125 Personnel 218 202 8 19
Slide 20: Baltic Dry Index 2010-2014
Baltic Dry Index 2010‒2014 Source: Bloomberg 20
Slide 21: The bakery specialist
The bakery specialist
Slide 22: Leipurin Q2/2014
Leipurin Q2/2014 • Prices of raw materials sold were below the comparison period. • Net sales stood at EUR 34.5 million (34.9), i.e. at the level of the comparison period. • Operating profit increased to EUR 1.9 million (1.2). • Due to the periodization of the sales projects for bakery machines, the
Slide 23: Leipurin key figures Q2
Leipurin key figures Q2 Q2/14 Q2/13 Change, % Net sales, MEUR 34.5 34.9 -1 Operating profit, MEUR 1.9 1.2 58 Personnel 290 277 5 23
Slide 24: Net sales in Russia, Ukraine + other CIS countries Q2
Net sales in Russia, Ukraine + other CIS countries Q2 MEUR 14 11.8 12 11.1 9.8 10 8 7.7 6 5.5 3.9 4 2 0 Q2/09 Q2/10 Q2/11 Q2/12 Q2/13 Q2/14 24
Slide 25: Leading expert in plastic raw materials and chemicals
Leading expert in plastic raw materials and chemicals
Slide 26: Telko Q2/2014
Telko Q2/2014 • The prices of raw materials sold by Telko increased slightly compared to the previous quarter. • Net sales amounted to EUR 60.4 million (61.6). • Operating profit improved to EUR 3.2 million (1.6). • In Telko's operating area, the overall economic situation was mainly weak. • Indicat
Slide 27: Telko key figures Q2
Telko key figures Q2 Q2/14 Q2/13 Change, % Net sales, MEUR 60.4 61.6 -2 Operating profit, MEUR 3.2 1.6 100 Personnel 248 251 -1 27
Slide 28: Net sales in Russia, Ukraine + other CIS countries Q2
Net sales in Russia, Ukraine + other CIS countries Q2 MEUR 35 32.4 30.5 30 28.5 25 21.3 20 16.7 15 10 9.0 5 0 Q2/09 Q2/10 Q2/11 Q2/12 Q2/13 Q2/14 28
Slide 29: Kaukomarkkinat: Expert in energy efficiency
ex KAUKO MARKKINAT Expert in energy efficiency
Slide 30: Kaukomarkkinat Q2/2014
Kaukomarkkinat Q2/2014 • Net sales amounted to EUR 8.6 million (8.3). • Operating profit improved significantly to EUR 0.0 million (-1.1). • Efficiency improvement measures were taken in Finland during the comparison period. The annual effect of the measures is approximately EUR 1 million. The lower
Slide 31: Kaukomarkkinat key figures Q2
Kaukomarkkinat key figures Q2 Q2/14 Q2/13 Change, % Net sales, MEUR 8.6 8.3 4 Operating profit, MEUR 0.0 -1.1 100 Personnel 80 87 -8 31
Slide 32: Financing
R ASPO Financing _ Harri Seppala
Slide 33: Equity ratio and gearing
Equity ratio and gearing % 200 180 170.2 165.6 160 153.3 148.4 143.1 140 131.6 124.2 120 116.3 112.0 98.2 100 80 60 40 32.9 34.4 33.9 32.4 27.7 29.0 29.2 29.8 25.6 26.2 20 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Equity ratio Gearing 33
Slide 34: Operational cash flow
Operational cash flow MEUR 16 15.8 14 13.4 11.7 12 10 8 5.9 6 4 1.8 2 0.5 0 -2 -4 -2,8 -6 -4.8 -8 -8.1 -10 -12 -10.9 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 34
Slide 35: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 160 140 134.4 131.9 132.5 130.2 120 127.3 124.5 118.7 113.7 111.0 100 101.5 80 60 40 20 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Net debt Cash and cash equivalents 35
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 60 40.0 50 47.0 40 20.0 30 20 20.0 20.0 10.0 10 5.0 5.0 0 2014 2015 2016 2017 2018+ Loans Covertible capital loan Revolving credit facilities Commercial papers, overdraft facilities and financial leasing agreements not included 36
Slide 37: Liquidity Q2/2014
Liquidity Q2/2014 MEUR Total In use Revolving credit facilities 60.0 17.0 Commercial paper program 80.0 27.0 Cash and cash equivalents 18.6 • Interest-bearing liabilities which will mature within one (1) year total EUR 62.5 million. • Cash + binding unutilized revolving credit facilities total EUR 6
Slide 38: Financials
R ASPO Financials ~ Arto Meitsalo
Slide 39: Income statement and key figures Q2
Income statement and key figures Q2 MEUR 2014 2013 Net sales 230.7 235.9 Depreciations -5.6 -5.6 Operating profit 10.1 2.4 Net financial expenses -2.5 -1.9 Profit before taxes 7.6 0.5 Profit for the period 7.9 0.9 2014 2013 Earnings/share, EUR 0.24 0.03 Equity ratio, % 32.4 25.6 Equity/share, EUR 3.
Slide 40: Balance sheet
Balance sheet Shareholder’s equity and MEUR Assets liabilities 350 350 312.7 307.5 312.7 307.5 300 300 88.3 88.8 250 250 125.5 129.2 200 48.5 200 48.7 150 150 87.0 100.8 100 100 175.9 170.0 50 50 100.2 77.5 0 0 Q2/2014 Q2/2013 Q2/2014 Q2/2013 Non-current assets Shareholder's equity Inventories Long-
Slide 41: Financial target: Return on equity
Financial target Return on equity ROE, % 45 40 35 30 25 20 15 16.4 13.7 15.2 10 11.8 8.9 5 0 2010 2011 2012 2013 Q1-Q2/2014 Target 41
Slide 42: Financial target: Operating profit, %
Financial target Operating profit, % 8 7 6 5 4 3 5.1 2 2.0 3.8 2.4 3.2 3.5 2.8 1 1.1 0.8 1.2 0 0.3 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Exluding non-recurring sales gains and losses Non-recurring sales gains and losses Target 42
Slide 43: Personnel / segment Q2
Personnel / segment Q2 350 300 290 248 250 200 218 150 100 80 50 32 0 Q2/2010 Q2/2011 Q2/2012 Q2/2013 Q2/2014 Tot. 717 Tot. 754 Tot. 835 Tot. 854 Tot. 868 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 43
Slide 44: Personnel / market area Q2
Personnel / market area Q2 500 444 450 400 350 300 270 250 200 150 100 69 63 50 22 0 Q2/2010 Q2/2011 Q2/2012 Q2/2013 Q2/2014 Tot. 717 Tot. 754 Tot. 835 Tot. 854 Tot. 868 Finland Scandinavia Baltic countries Russia, Ukraine + other CIS Other countries 44
Slide 45: Shareholders / allocation
Shareholders / allocation Share Q2/2014 Number of shareholders 9000 Personnel 8156 Non-domestic fund 7389 8000 & nominee 0.3% Institutions registrations 25.6% 6497 7000 6183 1.7% 5760 6000 5161 5000 4000 3000 2000 Group 1000 executive Private investors committee 0 55.7% Board 2.1% 14.6% 45
Slide 46: Market value
Market value Share price, EUR Market value, MEUR (incl. own shares) Closing Average 10.00 250 222 8.26 211 198 8.00 200 187 187 6.80 6.39 5.90 6.03 6.05 156 6.00 150 4.00 100 2.00 50 0.00 0 Aspo started its right issue on April 6, 2011. Share prices before this date are historical prices (not adjust
Slide 47: Outlook for 2014
Outlook for 2014
Slide 48: Expectations for Aspo Group in 2014
Expectations for Aspo Group in 2014 • Aspo's goal is to list Leipurin Ltd on the stock exchange during the last quarter. • Known sanctions and import bans related to the crisis between Russia and Ukraine will not have a significant effect on the behavior or operating conditions of the customer compa
Slide 49: Guidance for 2014
Guidance for 2014 The guidance remains unchanged: - Aspo’s operating profit will increase significantly in 2014 compared to 2013 and amount to EUR 17-20 million (operating profit for 2013: EUR 10.8 million) - Guidance does not include any positive non-recurring items. 49
Slide 50: Next interim report Q3 on October 28, 2014
Next interim report Q3 on October 28, 2014
Slide 51: Thank you!
R ASPO Thank you!