Slide 1: Aspo's Q1, April 28, 2010
Aspo’s Q1 April 28, 2010 CEO Aki Ojanen CFO Arto Meitsalo CTO Harri Seppälä
Slide 2: Market situation Q1
Market situation Q1 Q • The difficult conditions of the northern winter made shipping operations difficult. • Consumer demand has not yet recovered considerably on western markets. Russian demand has grown strongly. • Oil-based raw materials have strengthened somewhat but a slight drop was seen in f
Slide 3: Aspo's strategy
Aspo’s strategy • Aspo A iis a conglomerate l that h owns and d persistantly i l 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 E European markets k t as wellll
Slide 4: Aspo's Q1
Aspo's p Q1 Q • Aspo specifies its guidance. • Aspo will increase its net sales and the Group has the preconditions to improve its earnings per share. • Net sales amounted to EUR 83.4 million (78.4). • Net sales growing. Q1 2009 net sales also included a total of EUR 5 million on the divested Hamina
Slide 5: Operating profit Q1
Operating p g profit p Q1 Q MEUR Q1/10 Q1/09 Change ESL Shipping 14 1.4 41 4.1 -2 2.7 7 Leipurin 0.7 0.3 0.4 Telko 1.6 0.1 1.5 Kaukomarkkinat -0.4 1.0 -1.4 Other operations -1.2 -1.7 0.5 Total 21 2.1 38 3.8 -1 1.7 7 5
Slide 6: Net sales and operating profit
Net sales and operating profit 2009/2010 Q1 Q2 Q3 Q4 Cum. Net sales 83.4 83.4 MEUR 78.4 80.9 80.0 90.1 329.4 p g Profit Operating 2.1 2.1 MEUR 3.8 1.9 5.6 4.0 15.3 6
Slide 7: Significant events
Significant events • The Group Group'ss net sales growth and improved profitability was supported by growth in Russia, Ukraine and other CIS countries. • In I the th short h t term, t the th winter i t had h d a negative ti effect ff t on operational profitability. Handling contract transport for cu
Slide 8: Net sales Q1
Net sales Q1 Q MEUR Q1/10 Q1/09 Change ESL Shipping 17.3 17.3 0.0 Leipurin 25.2 21.7 3.5 Telko 34.5 28.8 5.7 Kaukomarkkinat 6.4 9.7 -3.3 Other operations 0.0 0.9 -0.9 Total 83.4 78.4 5.0 8
Slide 9: Net sales Q1 / market area
Net sales Q Q1 / market area MEUR Q1/10 Q1/09 Change Fi l d Finland 35 8 35.8 37 1 37.1 -1.3 13 Scandinavia 11.2 7.0 4.2 Baltic countries 9.0 7.5 1.5 Russia + other CIS 17.0 11.6 5.4 Other countries 10.4 15.2 -4.8 Total 83.4 78.4 5.0 9
Slide 10: Net sales / Russia + other CIS countries 2009-2010
Net sales / Russia + other CIS countries t i 2009-2010 2009 2010 MEUR 30.0 25.3 25.0 23.9 22 0 22.0 20.4 20.0 18.3 15.0 10.0 5.0 00 0.0 Q1 Q2 Q3 Q4 2009 2010 Including ESL Shipping’s exports from Russia 10
Slide 11: Market situation Q1 2010: ESL Shipping
Market situation Q1 2010 Integral part of Finnish security of supply 11
Slide 12: Market situation Q1
Market situation Q1 Q • Net sales remained intact but operating profit decreased. • International cargo price levels have risen risen. • Cargo volume has increased from 2009. • Steel industry production was clearly higher in the first quarter than in the spring of 2009 as predicted. • Coal transport
Slide 13: ESL Shipping key figures
ESL Shipping pp g key y figures g Q1/10 Q1/09 Change Net sales, MEUR 17.3 17.3 0.0 Operating profit, MEUR 1.4 4.1 -2.7 Personnel 186 221 -35 13
Slide 14: Capacity utilized efficiently
Capacity p y utilized efficiently y Strong demand Growing demand Recession 14
Slide 15: Market situation Q1 2010: Leipurin
Market situation Q1 2010 Expert in flavors and structures 15
Slide 16: Market situation Q1
Market situation Q1 • Net sales and operating profit increased. • The prices of bakery raw materials decreased slightly. • Machine sales suffered from a postponement in line delivery orders. Lay-offs began at bakery line assembly in Hausjärvi. Single machine sales have been better than in 2009. • Sa
Slide 17: Leipurin key figures
Leipurin p key y figures g Q1/10 Q1/09 Change Net sales, MEUR 25.2 21.7 3.5 Operating profit profit, MEUR 07 0.7 03 0.3 04 0.4 Personnel 224 184 40 17
Slide 18: Market situation Q1 2010: Telko
Market situation Q1 2010 Leading expert in chemicals and plastic raw materials 18
Slide 19: Market situation Q1
Market situation Q1 • Net sales and operating profit growing. • Raw material prices on a slight rise but no considerable strengthening h i iin ddemand d on western markets. k • Both plastics and chemicals improved their result. • Considerable result improvement in particular in Russia and Ukraine. •
Slide 20: Telko key figures
Telko key y figures g Q1/10 Q1/09 Change N sales, Net l MEUR 34 34.5 28 8 28.8 5.7 Operating profit, MEUR 1.6 0.1 1.5 Personnel 191 232 -41 20
Slide 21: Market situation Q1 2010: Kaukomarkkinat
Market situation Q1 2010 Expert in energy efficiency 21
Slide 22: Market situation Q1
Market situation Q1 Q • Comparable net sales decreased slightly, the operating profit was negative. Comparison figures for 2009 include Metex Deutschland and industrial electronics. • The difficult winter made air-source heat pump sales and installations difficult. Broken equipment increased after-
Slide 23: Kaukomarkkinat key figures
Kaukomarkkinat key y figures g Q1/10 Q1/09 Change N sales, Net l MEUR 64 6.4 9 9.7 -3.3 33 Operating profit, MEUR -0.4 1.0 -1.4 Personnel 87 96 -9 23
Slide 24: Financing
Financing CTO Harri Seppälä
Slide 25: Equity ratio and gearing, %
Equity q y ratio and gearing, g g, % 199,3 200 180 160 139,4 , 142,2 140 136 0 136,0 124,9 120 113,2 100 92,1 87,9 80 60 45,5 40 34,6 36,2 31,3 30,6 32,4 27,8 29,4 25,9 20,2 20 0 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Equity ratio Gearing 25
Slide 26: Free cash flow, MEUR
Free cash flow,, MEUR Cumulative 40 35 30 2 25 20 15 20,9 13,0 10 9,8 8,6 5 68 6,8 6,0 0 -1,5 -0,9 -4,3 -5 5 -0,1 -10 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Operational cash flow Cash flow from investments 26
Slide 27: Net debt, MEUR
Net debt,, MEUR 160 140 120 109,3 100 91,8 80 85,0 82,4 77,6 71,7 60 63,2 58,8 40 20 19,7 0 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Interest bearing liabilities Cash and bank deposits 27
Slide 28: Maturity of long-term loan portfolio, MEUR
Maturity atu ty oof long-term o g te loan oa po portfolio, t o o, MEUR U 45 40 35 30 25 20 15 10 5 0 2010 2011 2012 2013 2014 2015+ Loans Pension loans Capital loans Revolving credit facilities Commercial papers, overdraft and financial leases not included 28
Slide 29: Financing Q1 2010
Financing g Q1 Q 2010 MEUR Total In use Revolving credit facilities 50.0 0.0 CP program 50 0 50.0 00 0.0 Cash and bank deposits 5.9 During reporting period: Total amount of revolving credit facility agreements g down byy EUR 30 million Maturities extended. g Sales agreement on some of Telko’s trade
Slide 30: Financials
Financials CFO Arto Meitsalo
Slide 31: Income statement Q1
Income statement Q Q1 MEUR 2010 2009 Net sales 83.4 78.4 Depreciations -2.1 -2.3 Operating profit 2.1 3.8 Net financial expenses -1.1 -1.3 Profit before taxes 1.0 2.5 Earnings/share, EUR 0.02 0.07 31
Slide 32: Balance sheet Q1
Balance sheet Q1 Q MEUR 2010 2009 Fixed assets 107.3 129.2 Inventories 30.4 30.0 Cash and receivables 52.8 50.5 Total 190.5 209.7 Shareholders´ equity 68.7 57.0 Minority interest 00 0.0 00 0.0 Capital loan 12.0 14.5 Liabilities 109.8 138.2 T t l Total 190 5 190.5 209 7 209.7 Equity ratio, % 36.2 27.
Slide 33: Return on Investment and Return on Equity
Return on Investment and R t Return on E Equity it Group on the whole ROI, % ROE, % 40 40 35 35 30 30 25 25 20,1 20 18.3 20 15 13.6 13.1 15 13,3 13,3 12,1 11.1 10 2 10.2 10 8.4 10 7,5 7,4 5.8 5 5 3,2 0 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007
Slide 34: Operating profit, %
Operating profit, profit % Cumulated, Group on the whole, whole % 12,0 10,0 8,0 6,0 5.5* 5.6* 5.1* 4,8 4,7 4.6** 4,8 3,9 4,0 3.50*** 2.9***** 2.4***** 2,5 2.1**** 2,0 00 0,0 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 * Excluding sales gain of EUR 10.2 million on Ms Arkadia ** E
Slide 35: Earnings per share, Group
Earnings g per p share,, Group p EPS, Group on the whole 0.7 0.62** 0.60** 0.59** 06 0.6 0.57* 0.54*** 0.5 0.4 0.32 0.33**** 0.3 0.3 0.28 0.28 0.29 0,28 0.28**** 0.27**** 0.2 0.16 0.16 0.1 0.11 0.1 0.0 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 * Sales g gain of EUR 10.2 million on Ms Arkadia incl
Slide 36: Personnel Q1 2010
Personnel Q1 2010 Personnell P Group on the whole 800 769 691 687 675 702 700 678 600 560 500 400 300 200 100 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2004 2005 2006 2007 2008 2009 2010 36
Slide 37: Shareholders / Allocation
Shareholders / Allocation Sh Share Q1/2010 Personnel Non- 0.2 % Institutions 6 000 5382 domestic 25.1 % 2.8 % 5 000 4 000 3 000 2 000 1 000 Manage- 0 ment Private investors . 01 02 03 04 05 06 07 08 09 .3 0.8 % 31 20 20 20 20 20 20 20 20 20 62.9 % Board members 8.2 % 37
Slide 38: Market value
Market value Share price, EUR Market value, MEUR Päätöskurssi Keskikurssi 10 250 211 8.00 8 200 6.90 6.80 177 177 170 6.44 156 5.90 6 5.10 150 131 4.34 111 106 4.03 4 100 2.98 76 2.10 54 2 50 0 0 10 01 02 03 04 05 06 07 08 31 009 01 02 03 04 05 06 07 08 31 0 09 10 20 20 20 20 20 20 20 20 20 20 20 20
Slide 39: Expected in Aspo Group in 2010
Expected in Aspo Group in 2010 • ESL Shipping estimates that cargo volumes will grow in 2010 in raw materials for energy and steel industries. Preparations for a considerable increase in vessel capacity capacity. • Leipurin will continue to grow. Growth will come in particular from Russia, other CIS
Slide 40: Outlook for Aspo Group in 2010
Outlook for Aspo Group in 2010 • Aspo will increase its net sales and the Group has the preconditions to improve its earnings per share share. 40
Slide 41: Next Aspo interim report Q2 on August 24, 2010
Next Aspo interim report Q2 on A August g st 24 24, 2010 Thank you!