Aspo Plc · OMXHEX:ASPO
Aspo — FY2013 Earnings Presentation
55 slides from Aspo's earnings presentation, Feb 13, 2014
Slide 1: Aspo Full-year 2013 and Q4
Aspo Full-year 2013 and Q4 February 13, 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 has announced that it is reviewing the preconditions for initial public offering of Leipurin Ltd as a separate company on the Helsinki Stock Exchange´s main list. • Aspo would remain as minority owner of the company. • The preliminary IPO readiness assessme
Slide 4: Main events and operating result in 2013
Main events and operating result in 2013 • The general economic situation was challenging throughout the year on the western markets and deteriorated over the second half on the eastern markets. • Comparable operating profit increased by 35% to EUR 10.8 million (EUR 8.0 million and EUR 2.6 million s
Slide 5: Net sales and operating profit 2009–2013
Net sales and operating profit 2009–2013 Net sales Operating profit 500 50 476.3 481.6 476.3 395.9 400 40 329.4 300 30 200 20 100 10 0 0 5
Slide 6: Net sales / segment 2012–2013
Net sales / segment 2012–2013 MEUR 600 Change, % -1% 481.6 476.3 500 -21% 400 -3% 300 200 +4% 100 +8% 0 2012 2013 ESL Shipping Leipurin Telko Kaukomarkkinat 6
Slide 7: Operating profit / segment
Operating profit / segment MEUR 2013 2012 Change, % ESL Shipping 7.6 3.7 105 Leipurin 5.2 4.0 30 Telko 5.8 8.4 -31 Kaukomarkkinat -3.6 -0.6 -500 Other operations -4.2 -4.9 14 Total 10.8 10.6 2 7
Slide 8: Net sales / market area
Net sales / market area MEUR 2013 2012 Change, % Finland 156.7 158.9 -1 Scandinavia 43.4 42.6 2 Baltic countries 49.8 49.4 1 Russia, Ukraine + other CIS 153.0 157.8 -3 Other countries 73.4 72.9 1 Total 476.3 481.6 -1 8
Slide 9: Aspo's countries of operation
Aspon countries Aspo’s toimipisteet of operation 9
Slide 10: Net sales 2009–2013 Russia, Ukraine + other CIS countries
Net sales 2009–2013 Russia, Ukraine + other CIS countries MEUR 180 157.8 160 153.0 140 122.6 120 100 88.5 80 56.2 60 40 20 0 2009 2010 2011 2012 2013 10
Slide 11: Main events in Q4
Main events in Q4 • Net sales decreased to EUR 120.3 million (130.1). Operating profit increased to EUR 3.8 million (EUR 3.4 million and the EUR 0.2 million sales gains from a vessel). • ESL Shipping's operating profit grew strongly. • Leipurin posted good earnings. • Telko's earnings fell due to a
Slide 12: Group net sales quarterly 2011–2013
Group net sales quarterly 2011–2013 MEUR 135 130.1 130 125 121.3 120.3 120 115 110 105 100 95 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 12
Slide 13: Group operating profit quarterly 2011–2013
Group operating profit quarterly 2011–2013 MEUR 6 5.0 5 4 3.8 3.6 3 2 1 0 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 13
Slide 14: Net sales and operating profit Q4
Net sales and operating profit Q4 2012/2013 Q1 Q2 Q3 Q4 Cum. Net sales 112.3 123.6 120.1 120.3 476.3 MEUR 108.8 123.0 119.7 130.1 481.6 Operating profit 0.9 1.5 4.6 3.8 10.8 MEUR 0.3 3.8 2.9 3.6 10.6 14
Slide 15: Aspo business operations
Aspo business operations
Slide 16: Integral part of Finnish security of supply
Integral part of Finnish security of suply
Slide 17: ESL Shipping Q4/2013
ESL Shipping Q4/2013 • International dry bulk freight rates increased in the fall. • ESL Shipping's cargo volumes in the Baltic Sea were at a satisfactory level. • Steel industry continues to run a reduced production capacity. Coal transport volumes increased from the previous year thanks to low wat
Slide 18: ESL Shipping net sales and operating profit 2009–2013
ESL Shipping net sales and operating profit 2009–2013 MEUR Net sales Operating profit MEUR 100 15 93.1 79.5 80 77.8 12 72.3 63.8 60 9 40 6 20 3 0 0 Not including the sales gains of vessels 18
Slide 19: ESL Shipping key figures Q4
ESL Shipping key figures Q4 Q4/13 Q4/12 Change, % Net sales, MEUR 22.1 18.4 20 Operating profit, MEUR 4.1 2.0 105 Personnel 210 219 -4 19
Slide 20: The bakery specialist
The bakery specialist
Slide 21: Leipurin Q4/2013
Leipurin Q4/2013 • The prices of basic food raw materials remained unchanged or fell in 2013. In particular, the price of Russian grain decreased after the harvest season. • The 2013 net sales of Leipurin increased by 4% and operating profit by 30% to EUR 5.2 million (4.0). • Euro-denominated net sa
Slide 22: Leipurin net sales and operating profit 2009–2013
Leipurin net sales and operating profit 2009–2013 Net sales Operating profit 140 136.3 7 131.1 128.2 120 6 108.7 99.3 100 5 80 4 60 3 40 2 20 1 0 0 22
Slide 23: Leipurin key figures Q4
Leipurin key figures Q4 Q4/13 Q4/12 Change, % Net sales, MEUR 36.5 36.8 -1 Operating profit, MEUR 1.3 1.7 -24 Personnel 300 281 7 23
Slide 24: Net sales in Russia, Ukraine + other CIS countries Q4/2008–2013
Net sales in Russia, Ukraine + other CIS countries Q4/2008–2013 MEUR 14 13.0 12 11.4 10.8 10 8 7.0 6 5.6 5.4 4 2 0 Q4/08 Q4/09 Q4/10 Q4/11 Q4/12 Q4/13 24
Slide 25: Leading expert in plastic raw materials and chemicals
Leading expert in plastic raw materials and chemicals
Slide 26: Telko Q4/2013
Telko Q4/2013 • The prices of raw materials sold were volatile throughout 2013. • The poor development of industrial production on the western markets in 2013 reduced all volumes in the west. On eastern markets, a decline in local currencies weakened the result. • The full-year net sales stood at EU
Slide 27: Telko net sales and operating profit 2009–2013
Telko net sales and operating profit 2009–2013 Net sales Operating profit 250 237.7 10 230.2 211.6 200 8 175.2 150 6 128.8 100 4 50 2 0 0 27
Slide 28: Telko key figures Q4
Telko key figures Q4 Q4/13 Q4/12 Change, % Net sales, MEUR 53.5 59.4 -10 Operating profit, MEUR 0.5 1.4 -64 Personnel 249 265 -6 28
Slide 29: Net sales in Russia, Ukraine + other CIS countries Q4/2008–2013
Net sales in Russia, Ukraine + other CIS countries Q4/2008–2013 MEUR 35 30.8 30 28.3 26.7 25 20 18.3 15 11.1 10 9.3 5 0 Q4/08 Q4/09 Q4/10 Q4/11 Q4/12 Q4/13 29
Slide 30: Expert in energy efficiency
eX KAUKO MARKKINAT Expert in energy efficiency
Slide 31: Kaukomarkkinat Q4/2013
Kaukomarkkinat Q4/2013 • Net sales and operating profit fell in 2013. Net sales stood at EUR 32.0 million (40.5) and operating loss at EUR -3.6 million (-0.6). • The reorganization carried out in the summer will reduce costs by approximately EUR 1 million at an annual level. The company closed down
Slide 32: Kaukomarkkinat net sales and operating profit 2009–2013
Kaukomarkkinat net sales and operating profit 2009–2013 Net sales Operating profit 50 5 43.4 4 40.5 40 3 36.4 2 32.5 32.0 30 1 0 20 -1 -2 10 -3 -4 0 -5 32
Slide 33: Kaukomarkkinat key figures Q4
Kaukomarkkinat key figures Q4 Q4/13 Q4/12 Change, % Net sales, MEUR 8.2 15.5 -47 Operating profit, MEUR -1.2 -0.3 -300 Personnel 80 94 -15 33
Slide 34: Financing
R ASPO Financing _ Harri Seppala
Slide 35: Equity ratio and gearing
Equity ratio and gearing % 200 180 170.2 165.6 160 153.3 148.4 143.1 140 131.6 120 116.3 98.2 100 94.1 80 60 40 35.2 32.9 34.4 27.7 29.0 29.2 29.8 25.6 26.2 20 0 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Equity ratio Gearing 35
Slide 36: Operational cash flow
Operational cash flow MEUR 16 15.8 14 13.4 11.7 12 10 8.8 8 5.9 6 4 1.8 2 0 -2 -4 -6 -4.8 -8 -8.1 -10 -12 -10.9 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 36
Slide 37: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 160 140 134.4 131.9 132.5 130.2 120 127.3 118.7 111.0 100 101.5 80 87.0 60 40 20 0 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Net debt Cash and cash equivalents 37
Slide 38: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 60 40.0 50 40 20.0 37.0 30 20 20.0 20.0 10.0 10 5.0 5.0 0 2014 2015 2016 2017 2018+ Loans Convertible capital loan Revolving credit facilities Commercial papers, overdraft facilities, and financial leasing agreements not included.
Slide 39: Liquidity Q4/2013
Liquidity Q4/2013 MEUR Total In use Revolving credit facilities 60.0 10.0 Commercial paper program 80.0 17.0 Cash and cash equivalents 28.5 • Interest-bearing liabilities which will mature within one (1) year total EUR 44.9 million. • Cash + binding unutilized revolving credit facilities total EUR 7
Slide 40: Financials
Financials Arto Meitsalo
Slide 41: Income statement and key figures
Income statement and key figures MEUR 2013 2012 Net sales 476.3 481.6 Depreciations -10.8 -10.8 Operating profit 10.8 10.6 Net financial expenses -4.1 -3.2 Profit before taxes 6.6 7.4 Profit for the period 8.6 10.8 * 2013 2012 Earnings/share, EUR 0.28 0.36 * Equity ratio, % 34.4 29.2 Equity/share, E
Slide 42: Balance sheet
Balance sheet Shareholders’ equity and Assets liabilities 350 350 302.5 311.2 302.5 311.2 300 300 86.6 86.2 250 250 105.4 124.7 200 50.8 200 47.8 150 150 93.8 96.3 100 100 168.5 173.8 50 50 103.3 90.2 0 0 2013 2012 2013 2012 Shareholders´equity Non-current assets Long-term liabilities Inventories Sh
Slide 43: Investments excl. acquisitions
Investments excl. acquisitions 45 42.7 40 35 30.5 30 25 20 38.8 15 13.2 26.8 10 7.4 4.9 5 11.1 3.1 2.2 0 2009 2010 2011 2012 2013 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 43
Slide 44: Financial target: Return on equity
Financial target Return on equity ROE, % 45 40 35 30 25 20 15 16.4 15.2 13.0 8.9 10 11.8 5 0 2009 2010 2011 2012 2013 Target 44
Slide 45: Financial target: Operating profit
Financial target Operating profit, % 8 7 6 5 4 1.7 3 4.5 4.5 2 0.5 2.9 1 2.3 1.7 0 2009 2010 2011 2012 2013 Excluding non-recurring sales gains and losses Non-recurring sales gains and losses Target 45
Slide 46: Personnel / segment Q4
Personnel / segment Q4 350 300 300 281 265 249 250 219 210 200 150 100 94 80 50 30 12 0 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations Q4/12 Total 871 Q4/13 Total 869 46
Slide 47: Personnel / market area Q4
Personnel / market area Q4 500 457 450 431 400 350 300 272 250 250 200 150 100 77 67 66 72 50 25 23 0 Finland Scandinavia Baltic Russia, Ukraine, Others other CIS Q4/12 Total 871 Q4/13 Total 869 47
Slide 48: Shareholders / allocation
Shareholders / allocation Share Q4/2013 Number of shareholders 8000 Personnel 7389 fund Non-domestic 0.3% 7000 Institutions 6497 & nominee 26.6% 6183 registrations 1.4% 6000 5760 4860 5161 5000 4000 3000 2000 Manage- ment Private investors 2.3% 1000 54.8% Board 14.6% 0 2008 2009 2010 2011 2012 2013
Slide 49: 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 6.80 6.39 6.03 156 5.90 6.00 150 4.03 106 4.00 100 2.00 50 0.00 0 Aspo started its rights issue on April 6, 2011. Share prices before this date are historical prices (not adjus
Slide 50: Dividend proposal 2013
Dividend proposal 2013 • “On average, Aspo will pay approximately at least half of its earnings as dividends.” • “The aim is to increase shareholder value.” • The Board of Directors proposes a dividend of EUR 0.21 per share to the Annual Shareholders’ Meeting held in spring. 50
Slide 51: Dividend / earnings
Dividend / earnings Adjusted for rights issue EUR 1.00 0.80 0.60 0,57 0.56 0.45 0.38 0.40 0.42 0.42 0.40 0.40 0.40 0.40 0.36 0.31 0.28 0.20 0.21 0.00 2007 2008 2009 2010 2011 2012 2013* Effective dividend yield 6.5 % 10.4 % 7.1 % 5.1 % 6.2 % 6.6 % 3.5 % Dividend (2011 repayment of capital) Earnings
Slide 52: Outlook for 2014
Outlook for 2014
Slide 53: Expectations for Aspo Group in 2014
Expectations for Aspo Group in 2014 • Aspo has good capabilities to increase its organic growth and profitability. • The share of growth markets (i.e., Russia, Ukraine, other CIS countries, China, the Baltic countries, and Poland) from the Group's net sales will continue to increase. Any changes in
Slide 54: Guidance for 2014
Guidance for 2014 – Aspo will improve its operating profit. 54
Slide 55: Next interim report Q1 on May 5, 2014
Next interim report Q1 on May 5, 2014