Slide 1: Aspo Q3 2020
1 Q3 October 29, 2020 Aspo Q3 2020 October 29, 2020 CEO Aki Ojanen
Slide 2: Telko segment's record high results balanced the challenging quarter
2 Q3 October 29, 2020 Telko segment’s record high results balanced the challenging quarter, outlook for shipping business improved Better-than-expected operating profit in Q3 Telko segment achieved the best quarter in its history. Q3/2020 1-9/2020 Net sales Net sales The decrease in net sales was hi
Slide 3: Net sales
3 Q3 October 29, 2020 Net sales M€ 27 % ESL Shipping 31,6 M€ 180 Leipurin 24,3 M€ 157 53 % 160 151 148 147 142 Telko 62,5 M€ 140 133 136 133 20 % 120 115 116 118 100 Suomi 40,7 M€ 80 11 % 60 34 % Skandinavia 17,3 M€ 40 30 % Baltia 12,2 M€ 20 Venäjä, muut IVY- 0 15 % maat ja Ukraina 2018 2019 2020 10
Slide 4: Russia, other CIS countries and Ukraine
4 Q3 October 29, 2020 Russia, other CIS countries and Ukraine M€ Net sales 50 47,5 46,2 45,6 46,0 44,5 45 42,8 40 37,9 37,4 34,8 35 32,6 31,6 30 25 20 15 10 5 0 2018 2019 2020 Q1 Q2 Q3 Q4
Slide 5: Operating profit by quarter
5 Q3 October 29, 2020 Operating profit by quarter M€ Q3 operating profit by segment: 10 ESL Shipping EUR -0.1 million (4.4) 8 7,4 *) Leipurin EUR 0.3 million (0.8) 7,1 7,2 6,7 Telko EUR 4.2 million (2.4) 6 4,9 5,4 4,1 4,0 4,1 4 3,7 3,6 Telko segment achieved the 2 2,6 best quarter in its history, as
Slide 6: Net cash from operating activities, cumulative
6 Q3 October 29, 2020 Net cash from operating activities, cumulative M€ 60,0 Net cash from operating activities 52,5 increased due to improved 50,0 working capital management and 39,9 40,0 was EUR 39.9 million (33.6). 33,6 30,5 30,0 20,3 20,0 14,6 13,9 10,0 7,6 1,9 Due to low investments, the 0,0 Ja
Slide 7: ESL Shipping
7 Q3 October 29, 2020 ESL Shipping Leading marine logistics provider for bulk cargo
Slide 8: ESL Shipping Q3 2020
8 Q3 October 29, 2020 ESL Shipping Q3 2020 • During Q3 2020, net sales of ESL Shipping decreased by 27% from the comparative period and were EUR 31.6 (43.4) million. • The operating result was negative at EUR -0.1 (4.4) million. • Transportation volumes decreased significantly during the third quart
Slide 9: ESL Shipping net sales by quarter
9 Q3 October 29, 2020 ESL Shipping net sales by quarter M€ Net sales 50 46,4 45,3 Net sales decreased by 27% in 45 43,7 42,6 43,4 42,7 Q3 and were EUR 31.6 (43.4) 40 million. 35 32,9 30,6 31,6 30 25 22,6 20,5 20 15 Transportation volumes 10 decreased due to production 5 adaptations in the steel and
Slide 10: ESL Shipping operating profit by quarter
10 Q3 October 29, 2020 ESL Shipping operating profit by quarter M€ Operating profit 5,0 Lower volumes due to 4,5 4,3 4,2 4,4 4,4 challenging market 4,0 4,0 environment and general 3,5 3,2 uncertainty significantly 3,0 decreased operating profit. 2,6 2,6 2,5 2,3 2,0 1,5 The final quarter of 2020 is 1
Slide 11: Development of transportation volumes
11 Q3 October 29, 2020 Development of transportation volumes Million tons 5 Acquisition • Transportation volumes in larger of AtoB@C vessel categories started to increase 4,5 towards the end of the review period, New LNG driven especially by the recovery of 4 vessels raw material transportation for
Slide 12: Baltic Dry Index 2016-2020
12 Q3 October 29, 2020 Baltic Dry Index 2016-2020
Slide 13: Leipurin
13 Q3 October 29, 2020 Leipurin From bread and recipes to a comprehensive selection
Slide 14: Leipurin Q3 2020
14 Q3 October 29, 2020 Leipurin Q3 2020 • Leipurin’s net sales decreased to EUR 24.3 (29.9) million during the third quarter. The operating profit also decreased from the comparative period to EUR 0.3 (0.8) million. • In Q3, the market environment for Leipurin’s customers improved also in the restau
Slide 15: Leipurin net sales by quarter
15 Q3 October 29, 2020 Leipurin net sales by quarter M€ Net sales 35 31,9 Net sales in Q3 were EUR 24.3 30,2 31,2 31,6 29,9 million (29.9), as pandemic 30 28,0 28,0 26,9 restrictions continued to weigh 25,9 24,3 25 on demand. 23,2 20 15 10 In August-September, the 5 consumer demand in retail returne
Slide 16: Leipurin operating profit by quarter
16 Q3 October 29, 2020 Leipurin operating profit by quarter M€ Operating profit 1,2 Q3 operating profit was 1,1 EUR 0.3 million (0.8). 1 0,9 Costs associated with the 0,8 0,8 0,8 0,8 change of the managing 0,8 director were recognized 0,6 0,6 during the quarter. 0,6 0,5 0,4 0,3 0,3 In the coming mon
Slide 17: Telko
17 Q3 October 29, 2020 Telko Raw material solutions for the industry
Slide 18: Telko Q3 2020
18 Q3 October 29, 2020 Telko Q3 2020 • Net sales of the Telko segment decreased by 16% during the third quarter to EUR 62.5 (74.7) million. Net sales in Q4 2020 are still expected to be significantly lower than in Q4 2019. • Customers’ production restrictions reduced demand for raw material, particu
Slide 19: Telko net sales by quarter
19 Q3 October 29, 2020 Telko net sales by quarter Net sales of Telko business M€ Net sales decreased significantly due to 90 customers’ production restrictions 80,6 80 74,7 and low raw material 71,7 71,9 69,5 69,8 prices. However, the proportion of 70 67,3 *) 63,6 62,5 higher added value products an
Slide 20: Telko operating profit by quarter
20 Q3 October 29, 2020 Telko operating profit by quarter M€ Operating profit 4,5 Operating profit for Telko 4,2 4,2 segment increased in Q3 to 4,0 3,6 EUR 4.2 million (2.4). 3,5 3,4 3,0 2,9 2,5 2,4 2,3 2,4 2,4 2,2 2,0 Operating profit for Telko 1,5 business in Q3 was EUR 3.5 million (2.5). 1,0 0,9 0
Slide 21: Telko strengthened its position in the Nordic lubricants market by acquiring ILS Nordic
21 Q3 October 29, 2020 Telko strengthened its position in the Nordic lubricants market by acquiring Swedish ILS Nordic AB • ILS Nordic is a strategic lubricants distribution partner of BP Castrol in Sweden and Norway. • The acquisition will increase Telko's net sales in 2021 by approximately EUR 10
Slide 22: Equity ratio and gearing
Q3 October 29, 2020 Equity ratio and gearing % 40 250 35 200 30 Both gearing and equity ratio improved 25 150 due to strong cash flow even though the 20 size of the hybrid bond 100 was reduced in Q2. 15 10 50 5 0 0 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Equity ratio Gearin
Slide 23: Liquidity, debt profile and maturities
Liquidity, debt profile and maturities Interest bearing liabilities Maturity of loan agreements (MEUR) without lease liabilities (MEUR) 90 80 Average 26 interest rate 3 70 1.6% 17 60 50 144 40 30 Loans Commercial papers TyEL pension loan Bond 20 Liquidity position (MEUR) 10 0 2020 2021 2022 2023 202
Slide 24: The second distribution of dividend was paid on October 12, 2020
The second distribution of dividend was 24 Q3 October 29, 2020 paid on October 12, 2020 • On October 1, Aspo Plc’s Board of Directors decided about the second distribution of dividends, EUR 0.11 per share, on the basis of the decision made at the Annual Shareholders’ Meeting on May 4, 2020 • The pay
Slide 25: Aspo Capital Markets day on December 1, 2020
25 Aspo Capital Markets day on December 1, 2020 Q3 October 29, 2020 • Aspo invites analysts, institutional investors and business media to its virtual Capital Markets Day on Tuesday 1, December at 1 p.m. - 3 p.m (EET). • The event focuses on Aspo’s strategy and outlook and presentations are given by
Slide 26: Better than expected Q3
26 Better than expected Q3 Q3 October 29, 2020 • Telko segment’s strong results balanced the challenging quarter • The most significant negative effects resulting from the coronavirus pandemic on the Group’s businesses are starting to be behind us. At the end of Q3, we already saw signs of a rapid m
Slide 27: Appendix
27 Q3 October 29, 2020 Appendix
Slide 28: Key figures
28 Q3 October 29, 2020 Key figures 7-9/2020 7-9/2019 1-9/2020 1-9/2019 1-12/2019 Net sales, MEUR 118,4 148,0 367,2 440,7 587,7 Operating profit, MEUR 3,6 6,7 11,7 15,7 21,1 Operating profit, % 3,0 4,5 3,2 3,6 3,6 ESL Shipping, operating profit, MEUR -0,1 4,4 2,8 10,2 14,6 Leipurin, operating profit,
Slide 29: Long-term financial targets
Long-term financial targets 29 Q3 October 29, 2020 Operating profit rate (cum.) Return on equity (cum.) Gearing Target level 6% in 2023 Target level > 20% in 2023 Target level 130% in 2023 196 181 174 4,74,7 *) 4,4 155154 162 159163163 15,6 3,8 13,5 14,0 3,5 3,6 13,1 13,5 3,33,2 12,4 *) 119 3,2 3,1
Slide 30: Leipurin net sales in Russia, other CIS countries and Ukraine
Leipurin net sales in Russia, other CIS 30 Q3 October 29, 2020 countries and Ukraine M€ Net sales in the market area MRUB Net sales of the Russian company 14,0 800 693 11,8 700 665 12,0 11,1 600 559 10,0 9,5 535 9,0 514 513 8,6 8,3 8,6 478 481 475 489 480 8,2 500 8,0 7,7 7,5 7,5 400 6,0 300 4,0 200
Slide 31: Telko net sales in Russia, other CIS countries and Ukraine
Telko net sales in Russia, other CIS 31 Q3 October 29, 2020 countries and Ukraine M€ Net sales in the market area MRUB Net sales of the Russian company 40,0 1400 36,5 1258 35,3 34,8 35,5 34,4 1195 1211 35,0 1200 1149 31,6 1131 1084 29,2 30,0 1004 974 26,9 26,3 1000 868 856 25,0 24,0 23,8 794 800 20,
Slide 32: Number of shareholders
32 Q3 October 29, 2020 Number of shareholders Number of shareholders Distribution of ownership on September 30, 2020 by ownership group, % 11 000 10 644 4% 1% 10 500 10 260 18 % Institutions 10 000 Group Executive 1% Committee 9 502 9 500 Board of Directors 9 236 9 060 Private investors 22 % 9 000 5