Slide 1: Aspo Q3
Aspo Q3 October 26, 2017 CEO Aki Ojanen Group Treasurer Harri Seppälä
Slide 2: Net sales and operating profit continued growth in Q3
Net sales and operating profit continued growth in Q3 In Q3, net sales increased In Q3, operating profit Profit for the quarter was to EUR 127.2 million (118.2). improved to EUR 7.1 EUR 5.9 million (5,0). million (6.0). Earnings per share were EUR 0.19 (0.16). In Q1-Q3, earnings per In Q1-Q3, net ca
Slide 3: Operating profit Q1-Q3 increased by 18%
Operating profit Q1-Q3 increased by 18% Operating profit MEUR In Q1-Q3, operating profit 24 improved significantly and 20.6 20.4 was EUR 16.6 million (14.1). 20 Growth was 18%. Q1 16.6 16 14.4 Q1-Q2 14.1 12 Q1-Q3 9.5 In Q3, operating profit also 8.1 8 7.1 Q1-Q4 increased by 18%. 4.4 4 3.0 3.3 0 2015
Slide 4: Long-term financial targets
Long-term financial targets Operating profit, % % In Q1-Q3, operating profit 8 rate increased to 4.5% (4.2). 7 Q1 6 Q1-Q2 5 4.4 4.6 4.5 4.5 4.2 Q1-Q3 4 3.8 3.7 3.9 3.3 3.4 2.9 Q1-Q4 In Q3, operating profit rate 3 increased to 5.6% (5.1). 2 1 The target level is 7% by 0 2020. 2015 2016 2017 Q3 Octobe
Slide 5: Long-term financial targets
Long-term financial targets Return on equity, (ROE) % In Q1-Q3, ROE improved 28 26.2 significantly from the 24 comparative period and was 20.1 20.8 Q1 16.7% (13.4). 20 19.1 16.7 Q1-Q2 16 14.6 14.6 13.4 13.4 Q1-Q3 12 11.0 The target level is on 8.9 Q1-Q4 average over 20% by 2020. 8 4 0 2015 2016 2017
Slide 6: Long-term financial targets
Long-term financial targets Gearing % Gearing increased to 140 109.7% (103.8). 119 115 120 114 109 110 100 105 101 104 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 The target level is indicated by Q3 October 26, 2017 6 the dashed line.
Slide 7: Net sales by quarter
Net sales by quarter Net sales by quarter MEUR In Q3, net sales increased 140 125 124 127 by 8%. 122 119 120 116 118 110 112 102 Q1 100 99 All businesses increased Q2 their net sales. 80 Q3 60 Q4 Net sales increased in all 40 market areas, apart from Scandinavia. ESL 20 Shipping’s major customer red
Slide 8: Net sales by segment
Net sales by segment MEUR 80 70 Distribution of net sales, Q3/2017 60 ESL Shipping 14% 50 Leipurin 24% 40 Telko 53% 30 Kauko 9% 20 10 0 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 ESL Shipping 17.9 20.6 18.9 19.5 18.3 Leipurin 27.0 30.7 29.4 30.1 29.9 Telko 63.8 64.9 63.6 65.7 67.3 Kauko 9.5 8.3 7.1 8.5 11.7 Q3 O
Slide 9: Net sales by market area
Net sales by market area MEUR 50 Distribution of net sales, Q3/2017 45 40 Finland 31% 35 Scandinavia 9% 30 Baltic countries 12% 25 20 Russia, Ukraine and 34% 15 other CIS 10 Other countries 14% 5 0 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Finland 38.9 38.7 40.2 40.5 39.4 Scandinavia 12.0 12.1 13.0 13.1 11.2 Ba
Slide 10: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR In Q3, net sales in eastern 50 markets increased by 11%. 45 42.0 43.2 38.1 38.9 39.3 40.1 Q1 40 In Q1-Q3, growth in eastern 35.0 34.7 35 32.2 Q2 markets was 18%. 30 26.4 26.6 Q3 25 Q4 Net sales’ growth in eastern 20 markets: 15 10 Leipurin raw m
Slide 11: ESL Shipping
ESL Shipping ESL Shipping Johtava merilogistiikan tuottaja irtolasteille Leading marine logistics provider for bulk cargo Q3 October 26, 2017 11
Slide 12: ESL Shipping
ESL Shipping Q3 International sea freight rates increased. Net sales increased by 2% to EUR 18.3 million (17.9). Profitability is based on special expertise Net sales’ growth was limited by decreased and unique services. transportation volumes, as customers reduced their stock levels. Operating prof
Slide 13: Ms Haaga
Ms Haaga Q3 October 26, 2017 13
Slide 14: ESL Shipping, key figures Q3: Net sales
ESL Shipping, key figures Q3 Net sales MEUR Net sales increased slightly 25 to EUR 18.3 million (17.9). 20.6 19.9 19.9 20 18.9 19.5 18.3 18.2 18.2 17.9 Q1 16.2 16.7 Q2 15 Q3 10 Q4 Transportation volumes in the steel industry 5 decreased. Transportation volumes in other customer sectors increased or
Slide 15: ESL Shipping, key figures Q3: Operating profit
ESL Shipping, key figures Q3 Operating profit MEUR In Q3, operating profit was 5 EUR 3.3 million (3.4). 4.5 4.4 4.5 4.1 4 Q1 The number of off hire days 3.5 3.3 3.4 3.3 3.0 3.1 Q2 was exceptionally high. 3 2.9 2.5 Q3 2.5 2.2 2 Q4 Supramax-vessels operated profitably. 1.5 1 0.5 0 2015 2016 2017 Q3 Oc
Slide 16: Baltic Dry Index 2013‒2017
Baltic Dry Index 2013‒2017 Source: Bloomberg Q3 October 26, 2017 16
Slide 17: Leipurin
Leipurin From breads and recipes to a comprehensive selection Q3 October 26, 2017 17
Slide 18: Leipurin
Leipurin Q3 The prices of raw materials important to Net sales increased by 11% to EUR 29.9 Leipurin increased slightly. million (27.0). The Russian national economy, which is important to Leipurin, has turned to an Net sales increased especially in eastern upward trend, and the decline in consumer
Slide 19: Leipurin, key figures Q3: Net sales
Leipurin, key figures Q3 Net sales MEUR Net sales increased to EUR 35 31.5 29.9 million (27.0). 30.7 30 29.7 28.8 29.4 30.1 29.9 28.3 28.3 27.0 26.2 Q1 25 Q2 20 Q3 15 Net sales of eastern Q4 markets and machinery 10 operations increased. Raw 5 material sales in western markets decreased from the 0 2
Slide 20: Leipurin, key figures Q3: Operating profit
Leipurin, key figures Q3 Operating profit MEUR Operating profit was EUR 1.6 1.4 million (0.4). 1.4 1.4 Q1 1.2 1 Q2 0.8 0.8 Q3 0.7 0.7 0.6 In Q3, increase in 0.6 0.5 0.5 Q4 profitability accelerated. 0.4 0.4 0.4 0.4 0.4 Operating profit rate 0.2 improved significantly to 4.7% (1.5). 0 2015 2016 2017
Slide 21: 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 9.6 600 573 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 0.0 0 2015
Slide 22: Telko
Telko Raw material solutions for the industry Q3 October 26, 2017 22
Slide 23: Telko
Telko Q3 Positive economic turnaround in Finland. Net sales increased by 6% to EUR 67.3 In Russia, customers’ production turned million (63.8). into growth. The prices of plastics increased, and those of chemicals Net sales increased mainly in western remained high. markets and Ukraine. Operating pr
Slide 24: Telko, key figures Q3: Net sales
Telko, key figures Q3 Net sales MEUR Net sales increased to EUR 80.0 67.3 million (63.8). 70.0 67.3 62.2 63.8 64.9 63.6 65.7 Q1 60.0 55.2 56.5 53.6 50.0 49.4 Q2 50.0 40.0 Q3 Increase in net sales was 30.0 Q4 affected by higher price 20.0 levels and representation of Marine lubricants. 10.0 0.0 2015
Slide 25: Telko, key figures Q3: Operating profit
Telko, key figures Q3 Operating profit MEUR Operating profit increased to EUR 3.1 million (2.3). 3.5 3.2 Operating profit was 3.1 3.0 3.0 3.0 decreased by EUR 0.4 Q1 2.5 2.5 2.4 million costs of terminal 2.3 2.3 2.3 2.3 Q2 project and personnel 1.9 2.0 Q3 arrangements. 1.5 Q4 Operating profit rate w
Slide 26: 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 30.0 28.6 28.7 Q1 1005 1029 27.0 946 982 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 15.0 Q4
Slide 27: Kauko
Kauko Best tools for mobile knowledge work Q3 October 26, 2017 27
Slide 28: Kauko
Kauko Q3 Net sales increased by 23% to EUR 11.7 Operating profit was EUR 0.2 million (0.5). million (9.5). Strongest growth from project Investments in total solutions of mobile operations in China and energy-efficiency knowledge work decreased the operating equipment’s solar power deliveries. profi
Slide 29: Kauko, key figures Q3: Net sales
Kauko, key figures Q3 Net sales Net sales increased to EUR MEUR 11.7 million (9.5). 18 17.1 In Q3, net sales increased 16 by 23% and in Q1-Q3 by Q1 14 11%. 11.7 Q2 12 10 9.5 Q3 8.5 8.3 8.5 Energy-efficiency 8 7.1 6.8 7.1 6.7 Q4 equipment unit grew 6 5.5 strongly. 4 2 0 2015 2016 2017 Q3 October 26,
Slide 30: Kauko, key figures Q3: Operating profit
Kauko, key figures Q3 Operating profit Operating profit was EUR MEUR 0.2 million (0.5). Operating 1.0 0.6 profit development was 0.5 0.5 slowed down as a result of 0.1 0.1 0.0 0.1 0.2 0.0 Q1 investments in total Q2 solutions. -0.5 -0.3 -0.3 -0.5 -1.0 Q3 In Q1-Q3, operating profit -1.5 Q4 was EUR 0.1
Slide 31: Financials and financing
Financials and financing Harri Seppälä Q3 October 26, 2017 31
Slide 32: Income statement
Income statement MEUR Q1-Q3/2017 Q1-Q3/2016 Net sales 370.0 332.9 Ebitda rate was 6.9% (6.8). Ebitda 25.6 22.7 Operating profit rate Depreciation, amortization and -9.0 -8.6 improved to 4.5% (4.2). impairment losses Operating profit 16.6 14.1 Earnings per share Financial income and expenses -1.6 -2.
Slide 33: 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 Q1 5.7 million (-2.5). 15.0 10.7 Q1-Q2 Change in working capital 10.0 5.7 was EUR -16.3 million (-21.6). 5.0 3.5 Q1-Q3 0.0 Q1-Q4 In H2, net cash from opera
Slide 34: Equity ratio and gearing
Equity ratio and gearing % % 39 140 In Q1-Q3, cash flow from 38 investing activities was 120 37 EUR 14 million mostly 100 36 consisting of advance 35 80 payments for vessels. 34 60 33 40 Gearing was 110% and 32 20 equity ratio was 34%. 31 30 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2
Slide 35: Structure of liabilities
Structure of liabilities Interest bearing liabilities Interest bearing liabilities September 30, 2016, EUR 133 million September 30, 2017, EUR 139 million 7% 6% 8% 8% Loans 5% Loans 7% 3% Commercial papers Commercial papers TyEL pension loan TyEL pension loan 9% Bond Bond Others Others 69% 78% Q3 Oc
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 In Q3, the average interest rate of interest bearing 60.0 1.4 liabilities was 1.8% (12/2016: 50.0 1.8). 25.0 TyEL pension loan 40.0 1.4 Bond Hybrid bond (call) 30.0 20.0 1.4 Revolving credit facilities A revolving credit facility of 1.4 Loans 20.0 1.
Slide 37: Personnel, September 30, total 911
Personnel, September 30, total 911 Personnel by segment Personnel by geographical area 350 500 317 439 450 300 286 400 250 350 332 237 300 200 250 150 200 100 150 100 74 46 50 25 50 48 18 0 0 2013 2014 2015 2016 30.9.2017 2013 2014 2015 2016 30.9.2017 ESL Shipping Leipurin Telko Finland Scandinavia
Slide 38: General market outlook
General market outlook • General uncertainty in the markets has decreased. • Industrial production is expected to increase in the main The general market market areas of Aspo. situation of operations has • Raw material prices will remain low or increase. improved and will improve • Political risks m
Slide 39: Aspo's guidance remains unchanged
Aspo’s guidance remains unchanged Aspo’s operating profit will be EUR 23-26 million (20.4) in 2017. Q3 October 26, 2017 40