Slide 1: Aspo's Q2
Aspo’s Q2 August 21, 2012 CEO Aki Ojanen CFO Arto Meitsalo Group Treasurer Harri Seppälä
Slide 2: Q2 2012 main events
Q2 2012 main events • The Group continued strong and profitable growth in the strategically important Eastern growth markets. • The decrease in industrial production in the Western markets impacted the cargo volumes of the steel industry in particular, weakening ESL Shipping's profitability. • Coal
Slide 3: Group net sales remained unchanged
Group net sales remained unchanged MEUR 140 124.6 123.0 120 99.2 100 80 60 40 20 0 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 3
Slide 4: Net sales / segment Q2
Net sales / segment Q2 MEUR Change % 140 -1% 124.6 123.0 10% 120 100 13% 80 60 -5% 40 20 -30% 0 Q2/2011 Q2/2012 ESL Shipping Leipurin Telko Kaukomarkkinat 4
Slide 5: Group operating profit decreased
Group operating profit decreased MEUR 9 8 7 6 5.2 5 4.3 4 3.8 3 2 1 0 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 5
Slide 6: Operating profit / segment Q2
Operating profit / segment Q2 MEUR Q2/12 Q2/11 Change % ESL Shipping 2.6 3.2 -19 Leipurin 0.5 1.5 -67 Telko 2.5 2.2 14 Kaukomarkkinat -0.3 -0.1 -200 Other operations -1.5 -1.6 6 Total 3.8 5.2 -27 6
Slide 7: Net sales and operating profit Q2
Net sales and operating profit Q2 2011/2012 Q1 Q2 Q3 Q4 Cum. Net sales 108.8 123.0 231.8 MEUR 106.7 124.6 123.7 121.3 476.3 Operating profit 0.3 3.8 4.1 MEUR 2.9 5.2 8.4 5.0 21.5 7
Slide 8: Aspo operations
Asponoperations Aspo’s toimipisteet 8
Slide 9: Net sales / market area Q2
Net sales / market area Q2 MEUR Q2/12 Q2/11 Change % Finland 39.1 47.7 -18 Nordic countries 11.0 15.3 -28 Baltic countries 12.0 16.0 -25 Russia, Ukraine + other CIS 42.2 29.0 46 Other countries 18.7 16.6 13 Total 123.0 124.6 -1 9
Slide 10: Net sales: Russia, Ukraine + other CIS countries
Net sales Russia, Ukraine + other CIS countries Including ESL Shipping’s transports from Russia MEUR 60 49.8 50 40 38.1 30 28.7 20 10 0 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 10
Slide 11: Aspo business operations
ht ASPO Aspo business operations
Slide 12: Integral part of Finnish security of supply
Integral part of Finnish security of supply
Slide 13: ESL Shipping Q2 2012
ESL Shipping Q2 2012 • Global dry bulk cargo prices were at a record low and influenced cargo price levels on the Baltic Sea. • The price level of long-term agreements remained unchanged. • High coal stock levels decreased coal transports to Finland. • Production shutdowns in the Scandinavian steel
Slide 14: Baltic Dry Index
Baltic Dry Index Source: Bloomberg
Slide 15: ESL Shipping key figures Q2
ESL Shipping key figures Q2 Q2/12 Q2/11 Change % Net sales, MEUR 18.6 26.4 -30 Operating profit, MEUR 2.6 3.2 -19 Personnel 207 186 11 15
Slide 16: New supramax vessel: m/s Kumpula
New supramax vessel: m/s Kumpula 16
Slide 17: Expert in flavors and structures
Expert in flavors and structures
Slide 18: Leipurin Q2 2012
Leipurin Q2 2012 • Prices of basic raw materials in the food industry have stabilized at a high level. • Net sales from bakery raw materials grew and operating profit improved. • Net sales in Russia, Ukraine, and other CIS countries increased by 27%, with operating profit percentage amounting to app
Slide 19: Leipurin key figures Q2
Leipurin key figures Q2 Q2/12 Q2/11 Change % Net sales, MEUR 32.3 34.0 -5 Operating profit, MEUR 0.5 1.5 -67 Personnel 282 235 20 19
Slide 20: Growing net sales in Russia, Ukraine and other CIS countries
Growing net sales in Russia, Ukraine and other CIS countries MEUR 12 10 9.8 8 7.7 6 5.5 4.7 4.9 3.9 4 2 0 Q2/07 Q2/08 Q3/09 Q2/10 Q2/11 Q2/12 Leipurin has been part of Aspo Group as of 5/2008 20
Slide 21: Leading expert in chemicals and plastic raw materials
Leading expert in chemicals and plastic raw materials Yhtiökokous 3.4.2012
Slide 22: Telko Q2 2012
Telko Q2 2012 • Prices of raw materials sold decreased. • Telko’s strong growth was organic, especially in plastic raw materials. Decreasing prices weakened net sales and profitability in chemicals. • Strong growth in net sales continued in Russia, Ukraine, and other CIS countries, where growth amou
Slide 23: Telko key figures Q2
Telko key figures Q2 Q2/12 Q2/11 Change % Net sales, MEUR 62.5 55.5 13 Operating profit, MEUR 2.5 2.2 14 Personnel 247 230 7 23
Slide 24: Growing net sales in Russia, Ukraine and other CIS countries
Growing net sales in Russia, Ukraine and other CIS countries MEUR 35 32.4 30 25 21.3 20 16.7 15 11.5 10 9.0 7.1 5 0 Q2/07 Q2/08 Q2/09 Q2/10 Q2/11 Q2/12 24
Slide 25: Expert in energy efficiency
Expert in energy efficiency
Slide 26: Kaukomarkkinat Q2 2012
Kaukomarkkinat Q2 2012 • Net sales increased but operating profit decreased. • Operating profit in Poland improved, particularly in frequency converters. • Sales of energy efficiency equipment in Finland decreased due to economic uncertainty and the cold early summer, which decreased sales of air so
Slide 27: Kaukomarkkinat key figures Q2
Kaukomarkkinat key figures Q2 Q2/12 Q2/11 Change % Net sales, MEUR 9.6 8.7 10 Operating profit, MEUR -0.3 -0.1 -200 Personnel 87 90 -3 27
Slide 28: Energy efficient building technology for new projects and renovation in Finland
Energy efficient building technology for new projects and renovation in Finland Commer cial Apar tment facilities Residential buildings Commer cial buildings facilities Air -to-air heat Gr ound-sour ce Solar collector s Biomass bur ner s pumps heat pumps Heat stor age and Ventilation and Contr ol sy
Slide 29: Financing
ht ASPO Financing Harri Seppala
Slide 30: Equity ratio and gearing
Equity ratio and gearing % 200 180 160 148.4 140 124.7 123.7 120 115.8 116.3 101.5 100 94.4 93.1 94.1 80 60 40 33.2 33.7 34.2 35.2 32.9 30.2 30.0 31.7 27.7 20 0 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Equity ratio Gearing 30
Slide 31: Operational cash flow
Operational cash flow MEUR 10 9.6 8.9 8 7.1 6.3 5.9 6 5.1 4 2 0.2 0 -2 -2.9 -4 -6 -8 -8.1 -10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 31
Slide 32: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 160 140 120 127.3 111.0 100 80 87.0 82.0 81.6 78.4 78.5 78.1 70.6 60 40 20 0 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Net debt Cash and cash equivalents 32
Slide 33: Maturity of long-term loan portfolio
Maturity of long-term loan portfolio MEUR 60 40.0 50 40 42.0 20.0 30 25.0 20 20.0 10.0 10 .1,0 5.0 0 2012 2013 2014 2015 2016+ Loans Convertible capital loan Revolving credit facilities Commercial papers, overdraft facilities, and lease agreements not included. .
Slide 34: Liquidity Q2 2012
Liquidity Q2 2012 MEUR Total In use Revolving credit facilities 60.0 8.0 Commercial Paper Program 50.0 33.0 Cash and cash equivalents 24.6 Revolving credit facilities were increased by EUR 20 million. Interest-bearing liabilities, with a 1 year maturity, amount to a total of EUR 44.5 million. Cash a
Slide 35: Financials
ht ASPO Financials Arto Meitsalo
Slide 36: Income statement and key figures Q1-Q2
Income statement and key figures Q1-Q2 MEUR 2012 2011 Net sales 231.8 231.3 Depreciations -5.1 -4.0 Operating profit 4.1 8.1 Net financial expenses -1.4 -2.3 Profit before taxes 2.6 5.8 Profit for the period 6.2 4.3 2012 2011 Earnings/share, EUR 0.20 0.15 Equity ratio, % 27.7 33.7 Equity/share, EUR
Slide 37: Balance sheet
Balance sheet MEUR Shareholders’ equity and Assets liabilities 350 350 314.4 314.4 300 300 90.9 251.6 107.9 251.6 250 250 75.0 72.3 200 47.7 200 150 46.4 150 120.7 96.5 100 100 175.8 130.2 50 50 85.8 82.8 0 0 Q2/12 Q2/11 Q2/12 Q2/11 Non-current assets Shareholders' equity Inventories Long-term liabi
Slide 38: Financial targets: ROI and ROE
Financial targets Return on investment, return on equity Group on the whole ROI, % ROE, % 45 45 40 40 35 35 30 30 25 25 24.1 20 20 18.5 15 15 16.4 15.2 12.7 13.0 13.9 10 12.5 10 11.1 5 5 4.3 0 0 2008 2009 2010 2011 Q1-Q2/12 2008 2009 2010 2011 Q1-Q2/12 Target 38
Slide 39: Financial targets: Operating profit %
Financial targets Operating profit, % 8 7 6 5 4 6.8 3 5.8 5.0 2 4.3 4.2 4.1 2.0 2.7 1 0.3 1.1 0 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Excluding non-recurring sales gains and losses Target Non-recurring sales gains and losses 39
Slide 40: Personnel Q2/2012
Personnel Q2/2012 Group total 835 Share of Group personnel Distribution per country Other Other Kaukomarkkinat operations countries 1% ESL Shipping Russia, 8% Finland 10% 25% Ukraine, 53% other CIS 27% Baltic Telko countries 30% Leipurin Nordic 9% 34% countries 3% 40
Slide 41: Shareholders / allocation
Shareholders / allocation Share Q2/2012 Number of shareholders 7000 Personnel fund 0.3% 6377 6183 Non-domestic Institutions 6000 5760 & nominee registrations 23.9% 5036 4860 5161 1.3% 5000 4000 3000 2000 1000 Manage- ment Private investors 2.3% 0 56.2 % Board and controlled corporations 16.0% 41
Slide 42: Market value
Market value Share price, EUR Market value, MEUR (incl. own shares) Closing Average 10.00 250 222 8.26 211 8.00 200 184 6.80 170 6.44 156 5.90 5.94 6.00 150 106 4.03 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 43: Outlook for 2012
ht ASPO Outlook for 2012
Slide 44: Expectations in Aspo Group in 2012
Expectations in Aspo Group in 2012 • Aspo’s current structure creates a good basis for many years of organic growth. • The share of growth markets (i.e., Russia, CIS, Ukraine, China, the Baltic region, and Poland) of the Group’s sales will continue to increase and balance the weakening outlook for t
Slide 45: Guidance for 2012
Guidance for 2012 • Aspo has changed its guidance for 2012. – Aspo’s guidance issued on August 10, 2012: Aspo aims for growth in net sales but the operating profit will fall significantly short and earnings per share will fall slightly short of the level of 2011. 45
Slide 46: Next interim report Q3 will be published on October 25, 2012
Next interim report Q3 will be published on October 25, 2012 Thank you!