Slide 1: Aspo Year 2009 and Q4 February 15, 2010
Aspo Year 2009 and Q4 February 15, 2010 CEO Aki Ojanen CFO Arto Meitsalo CTO Harri Seppälä 1
Slide 2: Market situation 2009
Market situation 2009 • Steep decline in sold raw material prices and demand in H1. Stabilized during H2. • Food prices declined moderately throughout the year from record levels. Demand remained stable. • Sea cargo for the steel industry decreased up to the fall but picked up towards the end of the
Slide 3: Aspo's strategy
Aspo’s strategy • Aspo is a conglomerate that owns and persistantly develops its business operations and structure without predefined schedules. • Business operations focusing on B to B customers. • In the Baltic Sea area and the growing Russian and East European markets as well as Asian developing
Slide 4: Aspo's year 2009
Aspo's year 2009 • The first financial year for the new management. • The first financial year with the new Group structure. • Guidance for 2009 was "preconditions for reaching last year's result for continuing operations". • A considerable efficiency improvement in the Group's cost structure materi
Slide 5: Aspo's Q1-Q4 2009, continuing operations
Aspo’s Q1-Q4 2009, continuing operations • Net sales amounted to EUR 329.4 million (358.2) • Operating profit stood at EUR 15.3 million (14.1) • Profit before taxes was EUR 11.7 million (9.5) • Earning per share was EUR 0.33 (0.27) • Interest bearing net debt decreased and stood at EUR 58.8 million
Slide 6: Net sales and operating profit, continuing operations
Net sales and operating profit, continuing operations 2008/2009 Q1 Q2 Q3 Q4 Cum. Net sales 78.4 80.9 80.0 90.1 329.4 MEUR 52.5 92.9 112.6 100.2 358.2 Operating profit 3.8 1.9 5.6 4.0 15.3 MEUR 2.9 4.0 6.0 1.2 14.1 6
Slide 7: Main events, Q4 2009
Main events, Q4 2009 • Considerable administrative cost savings as predicted: full effect from fourth quarter onwards. • The second vessel that had been ordered from India was cancelled. Refunds of preliminary payments made with interest and foreign exchange losses from remaining installments togeth
Slide 8: Aspo Q4, continuing operations
Aspo Q4, continuing operations • Net sales amounted to EUR 90.1 million (100.2) • Operating profit was EUR 4.0 million (1.2) • Profit before taxes amounted to EUR 4.0 million (-0.4) ”A strong last quarter” 8
Slide 9: Net sales Q4, continuing operations
Net sales Q4, continuing operations MEUR Q4/09 Q4/08 Change ESL Shipping 17.6 20.9 -3.3 Leipurin 27.5 27.1 0.4 Telko 33.7 40.3 -6.6 Kaukomarkkinat 11.3 10.8 0.5 Other operations 0.0 1.1 -1.1 Total 90.1 100.2 -10.1 9
Slide 10: Net sales Q4 / market area
Net sales Q4 / market area MEUR Q4/09 Q4/08 Change, % Finland 38.8 25.3 53.3 Scandinavia 9.6 12.2 -21.4 Baltic countries 9.2 12.2 -24.6 Russia + other CIS 18.0 23.4 -23.1 Other 14.5 27.1 -46.5 Total 90.1 100.2 -10.1 10
Slide 11: Net sales / Russia + other CIS countries 2008-2009
Net sales / Russia + other CIS countries 2008-2009 MEUR 35,0 3330,11 30,0 25,3 25,0 23,9 20,8 19,8 20,4 20,0 18,8 18,3 15,0 10,0 5,0 0,0 Q1 Q2 Q3 Q4 2008 2009 Including ESL Shipping’s exports from Russia 11
Slide 12: Operating profit Q4, continuing operations
Operating profit Q4, continuing operations MEUR Q4/09 Q4/08 Change ESL Shipping 3.6 4.2 -0.6 Leipurin 1.1 1.1 0.0 Telko -0.1 -2.5 2.4 Kaukomarkkinat 0.5 1.0 -0.5 Other operations -1.1 -2.6 1.5 Total 4.0 1.2 2.8 12
Slide 13: Events after reporting period
Events after reporting period • Revolving credit facility agreements reorganized, down from EUR 80 million to EUR 50 million. Maturities extended. • Sales agreements on Telko trade receivables of EUR 5 million during first quarter of 2010. • Aspo’s first Capital Markets Day arranged, with different
Slide 14: Market situation Q4 2009 – ESL Shipping
Market situation Q4 2009 ESL Shipping Integral part of Finnish security of supply 14
Slide 15: Market situation Q4
Market situation Q4 • Steel industry volumes were normal in October-December. • Fleet management was successful and carried out at record low capacity. • Coal shipping was not at Q4 2008 levels. • Made payments were refunded and interest payments received from the cancelled vessel order as expected.
Slide 16: ESL Shipping key figures
ESL Shipping key figures 2009 2008 • Net sales, MEUR 63.8 84.1 • Operating profit, MEUR 14.7 15.6 • Personnel 194 240 16
Slide 17: Capacity utilized efficiently
Capacity utilized efficiently 20 000 Strong demand Growing demand Recession 15 000 Uudisrakennus INTIA 1/20NASSAUBORG BULK KDWT CREDO ARKADIA MADZY 10 000 KONTULA BOARD BOTNIA KALLA TASKU DUO UNO 5 000 ESPA HESPERIA PASILA TALI EIRA 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 18: Market situation Q4 2009 – Leipurin
Market situation Q4 2009 Leipurin Expert in food industry flavors and structures 18
Slide 19: Market situation Q4
Market situation Q4 • Leipurin's bakery raw materials had a strong Q4. The projects of the machine division were billed according to plan. • Operating profit for October–December was EUR 1.1 million, the best quarter of the year. • Domestic sales progressed well. • Russia's share of sales increased
Slide 20: Leipurin key figures
Leipurin key figures 2009 5-12/2008 • Net sales, MEUR 99.3 69.3 • Operating profit, MEUR 3.2 3.1 • Personnel 218 168 20
Slide 21: Market situation Q4 2009 – Telko
Market situation Q4 2009 Telko Leading expert in liquid chemicals and plastic raw materials in Northern Europe 21
Slide 22: Market situation Q4
Market situation Q4 • In operative terms profitability improved. The result for the quarter was depressed by EUR 0.5 million in non- recurring costs from personnel reductions in Finland and Scandinavia and by a EUR 0.4 million write-down from a Finnish customer's sales receivable. • Telko carried ou
Slide 23: Telko key figures
Telko key figures 2009 2008 • Net sales, MEUR 128.8 172.7 • Operating profit, MEUR 3.1 1.0 • Personnel 193 230 23
Slide 24: Market situation Q4 2009 – Kaukomarkkinat
Market situation Q4 2009 Kaukomarkkinat Expert in energy efficiency 24
Slide 25: Market situation Q4
Market situation Q4 • Operating profit in Q4 EUR 0.5 million. • Sales of air-source heat pumps was not at last year's level measured by profitability or turnover. Tight competition has depressed margins and the recession has decreased demand. • China posted a good result in the fourth quarter. • Ele
Slide 26: Kaukomarkkinat key figures
Kaukomarkkinat key figures 2009 5-12/2008 • Net sales, MEUR 36.4 30.8 • Operating profit, MEUR 0.5 2.1 • Personnel 90 100 26
Slide 27: Financing
Financing CTO Harri Seppälä 27
Slide 28: Finance key points
Finance key points • Improving key figures • Strong cashflow • Reduction of interest bearing debts • Strong liquidity • Extension of loan maturities 28
Slide 29: Equity ratio
Equity ratio 60 % 49 % 50 % 47 % 45 % 45 % 45 % 45 %46 % 43 % 44 % 42 % 42 %43 % 39 %40 % 39 %39 % 40 % 35 % 35 % 32 % 31 % 29 % 30 % 28 % 26 % 20 % 20 % 10 % 0% 09 09 4 4 4 4 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 9 10 20 30 40 10 20 30 40 10 20 30 40 10 20 30 40 10 20 30 40 10 20 3/ 4/ Q Q Q Q Q Q Q Q
Slide 30: Gearing
Q 0% 50 % 100 % 150 % 200 % 250 % 10 4 Q 20 4 Q 30 4 Q 40 4 Q 10 5 Gearing Q 20 5 Q 30 5 Q 40 5 Q 10 6 Q 20 6 Q 30 6 Q 40 6 Q 10 7 Q 20 7 Q 30 7 Q 40 7 Q 10 8 Q 20 8 Q 30 8 Q 40 8 Q 10 9 Q 20 9 Q 30 9 Q 40 9 87.9 % 30
Slide 31: Operational cash flow Q1-Q4 2009
Operational cash flow Q1-Q4 2009 MEUR Operating profit 15.3 Adjustments to operating profit 1.7 Change in working capital 6.8 Interest paid -5.5 Interest received 0.2 Taxes paid -5.5 Operational cash flow 13.0 31
Slide 32: Development of interest bearing debts
Development of interest bearing debts MEUR 200 133,6 113,8 100 95 91,9 87,1 78,9 70,3 33,5 0 08 08 08 08 09 09 09 09 20 20 20 20 20 20 20 20 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ Q Q Q Q Q Q Q Q 32
Slide 33: Financing Q4 2009
Financing Q4 2009 MEUR Total In use Valid >1 year Revolving credit facilities 80.0 0.0 0.0 CP program 50.0 0.0 Long-term loans 43.4 Cash and bank deposits 11.5 After reporting period: Total amount of revolving credit facility agreements down to EUR 50 million Maturities extended. Sales agreement on
Slide 34: Financials
Financials CFO Arto Meitsalo 34
Slide 35: Personnel 2004-2009
Personnel 2004-2009 Personnel, average Group on the whole 882 900 800 723 688 693 691 700 600 569 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 35
Slide 36: Income statement, continuing operations
Income statement, continuing operations MEUR 2009 2008 Net sales 329.4 358.2 Depreciations -8.9 -10.8 Operating profit 15.3 14.1 Net financial expenses -3.6 -4.6 Profit before taxes 11.7 9.5 Earnings/Share, EUR - Continuing operations 0.33 0.27 - Group on the whole 0.33 0.60 36
Slide 37: Balance sheet
Balance sheet MEUR 2009 2008 Fixed assets 109.3 128.7 Inventories 29.3 33.4 Cash and receivables 56.2 56.6 Total 194.8 218.7 Shareholders´ equity 66.9 66.0 Minority interest 0.0 0.0 Capital loan 12.0 14.5 Liabilities 115.9 138.2 Total 194.8 218.7 Equity ratio, % 34.6 30.6 Equity/share, EUR 2.59 2.56
Slide 38: Return on Investment and Return on Equity
Return on Investment and Return on Equity Group on the whole ROI, % ROE, % 40 40 35 35 30 30 27,4 25,0 25 25 20,4 19,8 19,4 20 20 18,4 16,5 14,9 14,5 15 15 14,1 13,0 11,2 11,1 10 9,5 10 5 5 0 ** 0 * 03 04 05 06 09 ** * 03 04 05 06 09 07 07 08 08 20 20 20 20 20 20 20 20 20 20 20 20 20 20 * Excluding
Slide 39: Operating profit, %, Group on the whole
Operating profit, %, Group on the whole Cumulated, Group on the whole 12,0 10,0 8,40 8,0 5,70 6,0 5,10* 4,0 3,50** 2,90*** 2,0 0,0 2005 2006 2007 2008 2009 * Excluding sales gain of EUR 10.2 million on Ms Arkadia ** Excluding sales gain of EUR 8.2 million on Autotank Group and EUR 1.2 million on oth
Slide 40: Earnings per share, Group
Earnings per share, Group EPS, Group on the whole 0,7 0,59 0,59* 0,60** 0,6 0,5 0,45 0,4 0,32 0,33*** 0,30 0,3 0,27 0,28 0,2 0,16 0,1 0,0 2004 2005 2006 2007 2008 2009 * Sales gain of EUR 10.2 million on Ms Arkadia included ** Sales gain of EUR 8.2 million for Autotank Group and sales gain of EUR 2.
Slide 41: Shareholders / Allocation
Shareholders / Allocation Share Q4/2009 (share Q4/08) Personnel Non-domestic 0.2 % Institutions 6 000 3.1 % 23.9 % 5161 5 000 4 000 3 000 2 000 1 000 Management 0 0.6 % Private investors 01 02 03 04 05 06 07 08 09 20 20 20 20 20 20 20 20 20 63.8 % Board members 8.4 % 41
Slide 42: Dividend proposal by the Board of Directors
Dividend proposal by the Board of Directors 42
Slide 43: Dividend proposal 2009
Dividend proposal 2009 • "On average, Aspo will pay approximately at least half of its earnings as dividends." • "The aim is to increase shareholder value.“ • Two components used as decision criteria – result – cash flow • The Board of Directors proposes a dividend of EUR 0.42 per share to the Annua
Slide 44: Dividends
Dividends 1,40 1,31 -1,54 1,20 1,00 0,80 0,62 0,27 0,60 0,25 0,23 0,19 0,12 0,40 0,36 0,42 0,42 0,42 0,4 0,41 0,20 0,12 0,00 2005 2006 2007 2008 2009e Effective 7.60 % 5.80 % 6.00 % 6.50 % 10.40 % 7.10 % dividend yield Dividend Free cash Undistributed equity flow/share (Aspo Plc) 44
Slide 45: Dividends
Dividends Number of shares, million Total Dividend, EUR million Additional Basic 28 26,399 26,406 26,406 25,683 26,048 14 26 24 11,971 12 22 11,10010,83010,830 10,680 10,273 20 10 18 8,472 8,380 16 8 14 12 6 10 8,584 8,551 8,551 8,472 4,807 8 4 6 4 2 2 0 0 2001 2002 2003 2004 2005 2006 2007 2008 200
Slide 46: Dividends
Dividends Dividend / Earnings, % Effective Dividend Yield, % 160 148 14 139 140 129 127 12 11,2 10,8 10,4 120 10 8,9 100 7,8 84 8 7,1 80 6,6 6,5 71 71 156* 6,0 59 6 60 4 40 2 20 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009e 2001 2002 2003 2004 2005 2006 2007 2008 2009e 46
Slide 47: Dividends
Dividends Earnings / Share, EUR Dividend / Share, EUR Additional Basic 0,8 0.8 0,7 0.7 0,59 0.56* 0,6 0,6 0.6 0,5 0,45 0.5 0.30 0,4 0,34 0.4 0.41 0.42 0.42 0,32 0.06 0.40 0,3 0.3 0.19 0.33 0,21 0,22 0,2 0.2 0,12 0.08 0.07 0.17 0,1 0.1 0.14 0.12 0.10 0,0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 20
Slide 48: Market value
Market value Share Price, EUR Market Value, MEUR Closing Average 10,00 250 8,00 200 6,90 6,80 177 177 170 6,44 156 5,90 6,00 150 131 5,10 4,34 111 106 4,03 4,00 100 2,98 76 2,10 54 2,00 1,48 1,67 50 39 43 0,00 0 99 01 03 05 07 09 99 01 03 05 07 09 19 20 20 20 20 20 19 20 20 20 20 20 48
Slide 49: Expected in Aspo Group in 2010
Expected in Aspo Group in 2010 • ESL Shipping will aim for operational efficiency and the efficient use of its entire vessel capacity. ESL Shipping plans to invest in additional capacity in accordance with its strategy. • The possible tonnage tax will improve ESL Shipping's result after tax consider
Slide 50: Outlook for Aspo Group in 2010
Outlook for Aspo Group in 2010 • ”In 2010, Aspo has the preconditions to increase its net sales and improve its earnings per share.” 50