Slide 1: Aspo's Q3
Aspo’s Q3 October 25, 2012 CEO Aki Ojanen CFO Arto Meitsalo Group Treasurer Harri Seppälä
Slide 2: Q3 2012 main events
Q3 2012 main events • Strong, profitable growth continued in Russia, Ukraine and other CIS countries, now Aspo’s largest market area. • Leipurin improved its net sales and operating profit. Telko's result is good despite declining prices. No Kaukomarkkinat project was recognized as income. • The dec
Slide 3: Group net sales
Group net sales MEUR 130 125 123.7 119.7 120 115 110 105 104.2 100 95 90 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 3
Slide 4: Net sales / segment Q3
Net sales / segment Q3 MEUR Change % 140 -3% 123.7 119.7 -35% 120 100 13% 80 60 10% 40 20 -36% 0 Q3/2011 Q3/2012 ESL Shipping Leipurin Telko Kaukomarkkinat 4
Slide 5: Group operating profit decreased
Group operating profit decreased MEUR 9 8.4 8 7 6.0 6 5 4 2.9 3 2 1 0 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 5
Slide 6: Operating profit / segment Q3
Operating profit / segment Q3 MEUR Q3/12 Q3/11 Change, % ESL Shipping 0.0 4.2 -100 Leipurin 1.2 0.9 33 Telko 2.5 3.4 -26 Kaukomarkkinat 0.1 1.0 -90 Other operations -0.9 -1.1 18 Total 2.9 8.4 -65 6
Slide 7: Net sales and operating profit Q3
Net sales and operating profit Q3 2011/2012 Q1 Q2 Q3 Q4 Cum. Net sales 108.8 123.0 119.7 351.5 MEUR 106.7 124.6 123.7 121.3 476.3 Operating profit 0.3 3.8 2.9 7.0 MEUR 2.9 5.2 8.4 5.0 21.5 7
Slide 8: Aspo's operations
Asponoperations Aspo’s toimipisteet 8
Slide 9: Net sales / market area Q3
Net sales / market area Q3 MEUR Q3/12 Q3/11 Change,% Finland 38.2 43.8 -13 Nordic countries 10.9 12.0 -9 Baltic countries 12.8 15.0 -15 Russia, Ukraine + other CIS 41.4 29.9 38 Other countries 16.4 23.0 -29 Total 119.7 123.7 -3 9
Slide 10: Net sales Russia, Ukraine + other CIS countries
Net sales Russia, Ukraine +other CIS countries MEUR 45 41.4 40 35 29.9 30 25 24.0 20 15 10 5 0 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 10
Slide 11: Management at Aspo
Management at Aspo • Day-to-day management through business units’ management groups. • Group Executive Committee; uniform management, culture and tools; Group synergies between business operations. • The Boards of ESL SHIPPING the business units LEIPURIN TELKO are responsible for business strategy
Slide 12: Aspo business operations
ht ASPO Aspo business operations
Slide 13: Integral part of Finnish security of supply
Integral part of Finnish security of supply
Slide 14: ESL Shipping Q3 2012
ESL Shipping Q3 2012 • Global prices of dry bulk cargo continued to be at a record low and influenced cargo price levels on the Baltic Sea. • The price level of long-term contracts remained unchanged. • Shutdowns in the steel industry in July, which affected transport volumes. Coal transports low. J
Slide 15: Baltic Dry Index
Baltic Dry Index Source: Bloomberg
Slide 16: ESL Shipping key figures Q3
ESL Shipping key figures Q3 Q3/12 Q3/11 Change, % Net sales, MEUR 15.4 24.1 -36 Operating profit, MEUR 0.0 4.2 -100 Personnel 203 186 9 16
Slide 17: Expert in flavors and structures
Expert in flavors and structures
Slide 18: Leipurin Q3 2012
Leipurin Q3 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 28%. • Integration of the Hausjärvi and Nastola (Finla
Slide 19: Leipurin key figures Q3
Leipurin key figures Q3 Q3/12 Q3/11 Change, % Net sales, MEUR 32.0 29.2 10 Operating profit, MEUR 1.2 0.9 33 Personnel 267 237 13 19
Slide 20: Growing net sales in Russia, Ukraine and other CIS countries
Growing net sales in Russia, Ukraine and other CIS countries MEUR 9 8.3 8 7 6.5 6.2 6 5.1 5 4.3 4.1 4 3 2 1 0 Q3/07 Q3/08 Q3/09 Q3/10 Q3/11 Q3/12 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
Slide 22: Telko Q3 2012
Telko Q3 2012 • Prices of raw materials sold decreased for chemical products. • Telko's strong growth was organic. Decrease in prices weakened the net sales and profitability of the chemicals business, but the net sales and profitability of the plastics business developed well. • Strong growth in ne
Slide 23: Telko key figures Q3
Telko key figures Q3 Q3/12 Q3/11 Change, % Net sales, MEUR 62.8 55.7 13 Operating profit, MEUR 2.5 3.4 -26 Personnel 257 229 12 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 33.0 30 25 23.3 20 17.8 15 12.8 10.4 10 8.0 5 0 Q3/07 Q3/08 Q3/09 Q3/10 Q3/11 Q3/12 24
Slide 25: Expert in energy efficiency
Expert in energy efficiency
Slide 26: Kaukomarkkinat Q3 2012
Kaukomarkkinat Q3 2012 • Net sales and operating profit fell. • Sales of energy efficiency equipment in Finland decreased due to economic uncertainty and the cold summer, which decreased sales of air source heat pumps. • Project sales in China decreased significantly compared to the comparison perio
Slide 27: Kaukomarkkinat key figures Q3
Kaukomarkkinat key figures Q3 Q3/12 Q3/11 Change, % Net sales, MEUR 9.5 14.7 -35 Operating profit, MEUR 0.1 1.0 -90 Personnel 90 84 7 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 % 200 180 160 153.3 148.4 140 123.7 120 115.8 116.3 101.5 100 94.4 93.1 94.1 80 60 40 33.2 33.7 34.2 35.2 32.9 30.0 31.7 29.0 27.7 20 0 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Equity ratio Gearing 30
Slide 31: Operational cash flow
Operational cash flow MEUR 10 9.7 8.8 8 7.1 5.9 6 5.1 4 2 0.2 0 -2 -2.9 -4 -4.8 -6 -8 -8.1 -10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 31
Slide 32: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 160 140 134.4 120 127.3 111.0 100 80 87.0 82.0 81.6 78.5 78.1 70.6 60 40 20 0 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 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 Q3 2012
Liquidity Q3 2012 MEUR Total In use Revolving credit facilities 60.0 18.0 Commercial Paper Program 50.0 20.0 Cash and cash equivalents 14.3 Interest-bearing liabilities, with a 1 year maturity, amount to a total of EUR 40.0 million. Cash and cash equivalents + binding revolving credit facilities not
Slide 35: Financials
ht ASPO Financials Arto Meitsalo
Slide 36: Income statement and key figures Q1-Q3
Income statement and key figures Q1-Q3 MEUR 2012 2011 Net sales 351.5 355.0 Depreciations -7.9 -6.1 Operating profit 7.0 16.5 Net financial expenses -2.2 -3.9 Profit before taxes 4.7 12.6 Profit for the period 7.9 9.3 2012 2011 Earnings/share, EUR 0.26 0.32 Equity ratio, % 29.0 34.2 Equity/share, EU
Slide 37: Balance sheet
Balance sheet Assets Shareholders’ equity and liabilities 350 350 309.1 309.1 300 300 80.6 260.7 260.7 250 100.5 250 75.4 70.2 200 54.0 200 45.1 150 150 120.9 102.9 100 100 174.5 140.2 50 50 87.7 87.6 0 0 Q3/12 Q3/11 Q3/12 Q3/11 Non-current assets Shareholders' equity Inventories Long-term liabiliti
Slide 38: Financial targets
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 10 12.7 12.5 10 13.0 11.1 11.7 5 5 4.8 0 0 2008 2009 2010 2011 Q1-Q3/12 2008 2009 2010 2011 Q1-Q3/12 Target 38
Slide 39: Financial targets
Financial targets Operating profit, % 8 7 6 5 4 6.8 3 5.8 5.0 2 4.2 4.1 2.0 2.7 2.4 1 1.1 0 0.3 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Excluding non-recurring sales gains and losses Target Non-recurring sales gains and losses 39
Slide 40: Personnel Q3 2012
Personnel Q3 2012 Group total 829 Share of Group personnel Distribution per country Other Other operations countries Kaukomarkkinat 1% ESL Shipping 8% Finland 11% Russia, 25% 53% Ukraine other CIS 27% Baltic Telko countries 31% Leipurin Nordic 9% 32% countries 3% 40
Slide 41: Shareholders / allocation
Shareholders / allocation Share Q3/2012 Number of shareholders 7000 Personnel 6479 fund 6183 Non-domestic 0.3% Institutions 6000 5760 & nominee 23.1% registrations 5036 4860 5161 2.1% 5000 4000 3000 2000 1000 Manage- ment Private investors 2.3% 0 56.4% Board and controlled corporations 15.8% 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 8.00 200 180 6.80 170 6.44 156 5.90 5.82 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 for Aspo Group in 2012
Expectations for 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
Slide 45: Guidance for 2012
Guidance for 2012 • Aspo remains its guidance: – 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: Thank you!
ht ASPO Thank you!