Slide 1: Strong performance continued in Q2: record-high comparable operating profit
Aspo January-June 2022 Strong performance continued in Q2: Comparable operating profit reached a record-high EUR 16.0 million CEO Rolf Jansson Aspo Q2 2022 August 10, 2022 May 2022 | Credit Investor Presentation
Slide 2: Historically strong quarter for Aspo
Historically strong quarter for Aspo Q2 2022 Q1-Q2 2022 Q2 net sales increased by 16%, clearly over the target growth rate of 5-10% Net sales, Group total • Net sales growth was driven particularly by ESL Shipping’s EUR 165.3 million (142.8) EUR 327.9 million (275.2) strong transport demand. Operati
Slide 3: Net sales increased by 16% to EUR 165.3 million in Q2
Net sales increased by 16% to EUR 165.3 million in Q2 MEUR Net sales Growth % 220 30% • In Q2, Group net sales increased by 16% to 200 25% EUR 165.3 (142.8) million. 180 20% • For January-June 2022, Aspo’s net sales increased by 19% to EUR 327.9 (275.2) 160 15% million. Target 5-10 % 140 10% • All k
Slide 4: Comparable operating profit at a record high EUR 16 million
Comparable operating profit at a record high EUR 16 million MEUR Operating profit Operating profit % 18,0 12% • Comparable operating profit for Q2 reached record-high EUR 16.0 million (9.6) and the 16,0 comparable operating profit rate was 9.7% 10% (6.7%). 14,0 • In January-June, comparable operatin
Slide 5: Q2 2022 items affecting comparability totaled EUR -2.4 million
Q2 2022 items affecting comparability totaled EUR -2.4 million • Cost provisions of approximately EUR -0.2 ESL Shipping million related to the closure of Russia-related EUR -0.2 million contracts. • The restructuring costs of operations in Russia Telko totaling EUR -0.9 million and the decrease in E
Slide 6: Solid cash flow development continued
Solid cash flow development continued MEUR 70 • Net cash from operating activities was EUR 34.3 million (22.2) for January-June. 60 • All core businesses of Aspo contributed 50 to the good cash flow development. • The impact of the change in working 40 capital on cash flow was EUR 2.3 million (- 7.2
Slide 7: Return on equity remained well above the target level
Return on equity remained well above the target level ROE % 35,0 • Return on equity adjusted by the items affecting comparability was 30,0 32.3% (24.5%). • Positive ROE development was 25,0 supported by improved performance Target >20% of all businesses. 20,0 • Reported ROE was 23.4% (24.5%). 15,0 1
Slide 8: Positive development in key sustainability targets continued
Positive development in key sustainability targets continued • Aspo's key target is to reduce carbon intensity, CO2e (tn) per net sales (EUR thousand), Carbon intensity, last 12m by 30% by 2025. Starting level (2020) was 0.44 and target level (2025) is 0.30. • During the last 12 months, the carbon i
Slide 9: Aspo business reviews
Aspo business reviews Forerunner and Accelerated growth Towards full potential industrial partner Aspo Q2 2022 August 10, 2022 9
Slide 10: All-time high Q2, with strong performance expected to continue
All-time high Q2, with strong performance expected to continue Aspo Q2 2022 August 10, 2022 10
Slide 11: Net sales growth driven by strong demand and operational efficiency
Net sales growth driven by strong demand and operational efficiency • ESL Shipping’s net sales increased by 31% from the comparative MEUR Net sales Growth % period to EUR 60.3 (46.0) million. 65 60% • In January-June, net sales increased by 31% from the comparative 60 period, amounting to EUR 117.1
Slide 12: The Baltic Dry index development
The Baltic Dry index development Baltic dry index Baltic handysize index Baltic supramax index Source: Baltic dry Index, banchero costa network July 29, 2022. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. The Baltic Dry Index takes into account 23
Slide 13: Pooling partnership being finalized
Pooling partnership being finalized • In connection with the series of new-generation electric hybrid vessels and remaining additional vessel options, ESL Shipping is finalizing a long- term pooling partnership together with a group of institutional and private investors. • The pooling structure is
Slide 14: Strongest Q2 ever in ESL Shipping’s history
Strongest Q2 ever in ESL Shipping’s history MEUR Operating profit Operating profit % 10 20% • ESL Shipping’s comparable operating profit increased to EUR 9.2 (5.4) million in Q2. Comparable operating 9 18% profit rate increased to 15.3% (11.7%). • In January-June, the comparable operating profit 8 1
Slide 15: Strong performance continued in Q2, Russia decreasing sales going forward
Strong performance continued in Q2, Russia decreasing sales going forward Aspo Q2 2022 August 10, 2022 15
Slide 16: Continued growth during Q2, with increasing uncertainty and negative Russia impact
Continued growth during Q2, with increasing uncertainty and negative Russia impact going forward MEUR Net sales Growth % • Telko’s net sales grew with 6% to EUR 71.8 (67.6) million in Q2. 80 40% • In January-June, the net sales increased by 18% to EUR 147.7 (125.6) million. 70 30% • Telko’s net sale
Slide 17: Comparable operating profit boosted by strategic focus and positive sales margin levels
Comparable operating profit boosted by strategic focus and positive development in sales margin levels MEUR Operating profit Operating profit % 9 12% • Telko’s comparable operating profit for Q2 was EUR 7.2 (5.5) million and operating profit rate was 10.0% 8 (8.1%). 10% 7 • Telko’s comparable operat
Slide 18: Margin improvement continued, Russia decline and the Kobia acquisition impacting going forward
Margin improvement continued, Russia decline and the Kobia acquisition impacting going forward Aspo Q2 2022 August 10, 2022 18
Slide 19: Net sales continued to pick up especially in Finland and the Baltic countries
Net sales continued to pick up especially in Finland and the Baltic countries, with East declining MEUR Net sales Growth % 40 20% • Leipurin’s net sales increased by 14% and stood at EUR 29.3 million (25.8) in Q2. 35 15% • In January-June, Leipurin’s net sales increased by 6% and were EUR 57.0 (53.7
Slide 20: Leipurin’s comparable operating profit rate continued to improve
Leipurin’s comparable operating profit rate continued to improve, impact from development actions and market environment MEUR Operating profit Operating profit % • Leipurin’s Q2 comparable operating profit increased to EUR 0.9 million (0.3) and operating profit rate to 3.1% 1,2 6% (1.2%). Target 5 %
Slide 21: Leipurin to acquire Swedish supplier Kobia
Leipurin to acquire Swedish supplier Kobia • In May, Leipurin agreed to purchase the entire share capital of the Swedish bakery industry distributor Kobia Ab from the Swedish Abdon Group. • Through the acquisition, Leipurin further strengthens its position as a leading player in the Baltic Sea regio
Slide 22: New home for Vulganus, no significant impact on Aspo’s earnings
New home for Vulganus, no significant impact on Aspo’s earnings • Leipurin has concluded the sale of its manufacturing business Vulganus to a leading Austrian bakery machine manufacturer KÖNIG Maschinen GmbH. • In 2021, Vulganus’ net sales amounted to EUR 7 million. The transaction will not have a s
Slide 23: Aspo’s financial position and guidance
Aspo’s financial position and guidance Aspo Q2 2022 August 10, 2022 23
Slide 24: Balance sheet strengthening continued in Q2
Balance sheet strengthening continued in Q2 Equity ratio % Gearing % 40 200 • Equity ratio and gearing kept improving during Q2 as a result of 35 180 improved profitability and a new Gearing target <130 % hybrid bond issued in June. 30 160 • Aspo issued a new hybrid bond of EUR 30 million in June. T
Slide 25: Strong liquidity and balanced maturity structure
Strong liquidity and balanced maturity structure Interest-bearing debt incl. lease Maturity profile (mEUR) liabilities (mEUR) 100 Net interest- 21 90 bearing debt EUR 15 80 144.9m 7 70 Avg interest rate 60 1.4% 147 50 40 30 Term loans Commercial Papers 20 Bonds Lease liabilities 10 0 2022 2023 2024
Slide 26: Update on the Eastern market operations
Update on the Eastern market operations • By end of Q2 2022, all of ESL Shipping's operations in Russia had been suspended and the ship capacity has been transferred to other traffic areas. • Telko is exploring options to exit its Russian and Belarusian operations during this year. • Leipurin has de
Slide 27: Net sales in Eastern markets decreasing
Net sales in Eastern markets decreasing Development in geographical net sales breakdown • The relative share of net sales in eastern markets continued to (Total revenue) decrease during the second quarter of 2022, mainly due to the war in Ukraine and the decision to reduce operations in Russia and 5
Slide 28: Guidance for 2022
Guidance for 2022 (issued on June 14, 2022) Aspo Group’s comparable operating profit will improve from previous year (EUR 42.4 million). Aspo Q2 2022 August 10, 2022 28
Slide 29: In a good position to continue our strategy execution
In a good position to continue our strategy execution • Record-high profitability in Q2 driven by excellent performances by ESL Shipping and Telko. • While we are reducing our presence in the East, we have focused on our strategy execution and targeted growth in the Western markets. • Whereas the ma
Slide 30: Q&A
Q&A +358 9 817 10310 (36392913#) Aspo Q2 2022 August 10, 2022 30
Slide 31: Upcoming events
Upcoming events Interim report for January–September 2022 on November 2, 2022 www.aspo.com Twitter: @AspoPlc Aspo Q2 2022 August 10, 2022 31
Slide 32: Appendix
Appendix Aspo Q2 2022 August 10, 2022 32
Slide 33: Key figures
Key figures Q2 2022 Q2 2021 H1 2022 H1 2021 2021 Net sales from continuing operations, MEUR 161.4 139.3 321.8 268.7 573.3 ESL Shipping, operating profit, MEUR 9.0 5.4 18.2 9.9 26.8 Telko, operating profit, MEUR 6.8 5.5 10.8 10.1 20.4 Leipurin, operating profit, MEUR 0.4 0.3 0.0 0.6 -2.4 Other operat
Slide 34: Shareholders
Shareholders Largest shareholders June 30, 2022 % of shares Havsudden Oy Ab 10.38 AEV Capital Holding Oy 10.35 Varma Mutual Pension Insurance Company 4.53 Personnel fund Non-domestic and nominee Vehmas Tapio 4.06 registrations 0% Nyberg Gustav 2.87 4% Ilmarinen Mutual Pension Insurance Company 2.79