Aspo Plc · OMXHEX:ASPO
Aspo — Q3 2023 Earnings Presentation
36 slides from Aspo's earnings presentation, Nov 1, 2023
Slide 1: Aspo's Q3 results improved considerably from Q2
Aspo Group Q3 2023 interim report Aspo’s Q3 results improved considerably from Q2, yet not reaching previous year’s record level CEO Rolf Jansson November 1, 2023
Slide 2: Aspo on a profitability path and strategy execution progressing
Aspo on a profitability path and Q3 2023 Q1-Q3 2023 strategy execution progressing Net sales, continuing operations • Net sales from continuing operations decreased 1% 1-9/2023 (9% EUR 130.0 million (142.8) EUR 404.2 million (407.8) decline in Q3/2023) Comparable operating profit, • Comparable opera
Slide 3: Working hard to reach year 2023 sustainability targets
Working hard to reach year 2023 sustainability targets • Aspo's key target is to reduce emission intensity, CO2 (tn) per net sales (EUR thousand), by 30% by 2025 Emission intensity, LTM - Starting level (2020) was 0.44 0.35 (0.33 in 2022) - Q3/2023 Rolling 12 months: 0.35 Target 2023: - Target level
Slide 4: Net sales from Aspo's continuing operations flat in Q1-Q3/2023
Net sales from Aspo’s continuing operations flat in Q1-Q3/2023 MEUR Net sales Growth % 180 35% • For January-September 2023, net 160 30% sales from continuing operations decreased by 1% to EUR 404.2 140 25% (407.8) million • In Q3 2023, Aspo’s net sales from 120 20% continuing operations decreased b
Slide 5: Q3 comparable operating profit at EUR 7.4 million, more than doubled from Q2
Aspo’s Q3 comparable operating profit from continuing operations at EUR 7.4 million, more than doubled from Q2 MEUR Comp. oper. profit Comp. oper. profit % 14 14% • In January-September, comparable operating profit from continuing operations was EUR 19.4 (32.8) 12 12% million, and the comparable ope
Slide 6: Financials of the discontinued operations trending towards zero
The financials of the discontinued operations are trending towards zero, with limited impact in 2023 MEUR Net sales Growth % MEUR Comp. oper. profit Comp. oper. profit % 40 70% 7 35% 35 50% 6 30% 5 25% 30 30% 4 20% 25 10% 3 15% 20 -10% 2 10% 15 -30% 1 5% 10 -50% 0 0% 5 -70% -1 -5% 0 -90% -2 -10% Q1/
Slide 7: Items affecting comparability totaling EUR -9.6 million in 1-9/2023
Items affecting comparability, totaling at EUR -9.6 million in 1-9/2023, fully relate to the discontinued businesses Operating profit bridge, continuing operations 1-9/2023 • Items affecting comparability totaled EUR -1.3 (-0.7) million in Q3 MEUR - EUR 0.7 million concerning continuing operations 2
Slide 8: Like-for-like profitability in 2023 forecasted EUR 10+ million above historical average
Aspo’s like-for-like profitability in year 2023 is forecasted to be EUR 10+ million above the historical average Aspo Group all countries: Aspo Group excl. Russia, Belarus, Leipurin Kazakhstan and Ukraine: Comparable operating profit (EUR million) Comparable operating profit (EUR million) 55,3 B 43,
Slide 9: Strong cash flow in Q3, free cash flow improved
Strong cash flow in Q3, 1-9/2023 free cash flow improved from last year MEUR Cash flow development, Group total • Net cash from operating activities was EUR 70 35.0 million (45.7) - Cash flow of all businesses was positive 60 - The decline compared to the comparative period came from ESL Shipping -
Slide 10: New recruitments at Aspo: Erkka Repo and Susanna Kemppinen
New recruitments at Aspo: Erkka Repo and Susanna Kemppinen • Erkka Repo (M.Sc. Econ.) has been appointed Aspo Group’s Chief Financial Officer and a member of Aspo's Group Executive Committee - He will start in his position latest during February 2024. Aspo’s current CFO Arto Meitsalo will continue i
Slide 11: ESL Shipping's volumes have picked up after the summer
ESL Shipping’s volumes have picked up after the summer impacting operating profit positively
Slide 12: ESG driven accelerated growth
ESG driven accelerated growth Creating infra to enable the green transition of Nordic industrials Key value drivers: Forerunner in low-carbon technologies, Long-term industrial partnerships new business models and financial instruments Strong position for serving the specific Business intelligence d
Slide 13: ESL Shipping net sales declined in Q3
In Q3, net sales declined due to lower market demand during the summer, lower vessel capacity and lower fuel prices MEUR Net sales Growth % • In January-September, net sales decreased by 23% from the comparative period, amounting to EUR 139.7 (182.1) million 90 50% • In Q3, ESL Shipping’s net sales
Slide 14: Market indices have somewhat recovered since beginning of September
Market indecies have somewhat recovered since beginning of September Baltic Supramax index Baltic dry index Baltic Handysize index Source: Baltic dry Index, banchero costa network October 27, 2023. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. The
Slide 15: Profitability development has already picked-up after the summer
Profitability development has already picked-up after the summer Comp. oper. profit Comp. oper. profit % MEUR • In January-September, the comparable operating profit 12 24% decreased to EUR 13.3 (26.9) million and the comparable operating profit rate was 9.5% (14.8%) 11 22% • In Q3, the comparable o
Slide 16: ESL Shipping will benefit from the green transition
ESL Shipping will benefit from the green transition • The green transition is expected to substantially enlarge ESL Shipping’s market • The investment into twelve green coasters is progressing as planned. A total of six vessels are already under construction and the first vessel in the series, Elect
Slide 17: Telko's operating profit more than tripled from Q2 to Q3
Telko’s operating profit more than tripled from Q2 to Q3
Slide 18: Organic growth supported by M&A
Organic growth supported by M&A Leading European specialty products expert and distributor Key value drivers: Organic growth in specialty products in close Continued M&A growth through both cooperation with long-term partners add-ons and new growth platforms Uniform business model with Actions for i
Slide 19: Telko net sales growth impacted by soft demand and acquisitions
Net sales growth impacted by soft demand, positive market share development, stabilizing market prices and acquisitions • In January-September, net sales increased by 5% from the MEUR Net sales Growth % comparative period, amounting to EUR 162.3 (155.1) million 70 30% • In Q3, Telko’s net sales incr
Slide 20: Stabilizing price development and efficiency as profitability contributors
Stabilizing price development, efficiency improvement efforts and acquisitions as key profitability contributors MEUR Comp. oper. profit Comp. oper. profit % • In January-September, the comparable operating profit 5 10% decreased to EUR 6.7 (9.6) million and the comparable operating profit rate was
Slide 21: Leipurin operating profit all-time high in Q3/2023
Leipurin operating profit all-time high in Q3/2023
Slide 22: On a path to its full profit potential
On a path to its full profit potential Focused and skilled gateway of bakery and food ingredients to Northern Europe Key value drivers: Full profit potential developing Successful Kobia integration to create cross sales commercial, supply chain and sourcing opportunites and scale benefits capabiliti
Slide 23: Continued growth driven by the Kobia acquisition and inflation
Continued growth driven by the Kobia acquisition and inflation MEUR Net sales Growth % 45 70% • In January-September, net sales increased by 45% from the comparative period, amounting to EUR 102.2 (70.6) million 40 60% • In Q3, Leipurin’s net sales increased by 27% from the 35 50% comparative period
Slide 24: Leipurin's profitability continued to improve reaching almost 4%
Leipurin’s profitability continued to improve reaching almost 4% MEUR Comp. oper. profit Comp. oper. profit % 1,6 8% • In January-September, the comparable operating profit increased to EUR 3.4 (0.6) million and the 1,4 7% comparable operating profit rate was 3.3% (0.8%) 1,2 6% • In Q3, the comparab
Slide 25: Sale and lease back of property in Lithuania
Sale and lease back of property in Lithuania • Leipurin completed a sale and leaseback agreement for its office and warehouse property in Kaunas, Lithuania. The buyer is an entrepreneur operating in the same industrial area • After the transaction Leipurin continues its Lithuanian operations in in t
Slide 26: Divestment of the bakery equipment trading business
Divestment of the bakery equipment trading business • Leipurin has signed on October 20, 2023 an agreement for the sale of its bakery equipment trading business to Orat Oy - Orat Oy is a Finnish family business specializing in import of machinery, accessories and raw materials used in the food indus
Slide 27: Leipurin exit from Russia, Belarus and Kazakhstan
Leipurin exit from Russia, Belarus and Kazakhstan • Aspo has not yet received acceptance to the sale of Leipurin Russia, by the necessary Russian governmental bodies • It is difficult to assess, when such acceptance will be received, and hence Aspo is in parallel assessing alternative measures for e
Slide 28: Balance sheet, dividend and executive summary
Balance sheet, dividend and executive summary
Slide 29: Aspo's balance sheet remains solid
Aspo’s balance sheet remains solid Equity ratio % Gearing % 40 200 • Gearing decreased to 104.5% Gearing target <130 % (Dec 31, 2022: 108.4%) 35 180 • The Group’s equity ratio at 30 160 the end of the review period increased to 35.8% (Dec 31, 25 140 2022: 34.7%) 20 120 15 100 10 80 5 60 0 40 Q1/21 Q
Slide 30: Strong liquidity and balanced maturity structure
Strong liquidity and balanced maturity structure Interest-bearing debt incl. lease Maturity profile (EUR million) liabilities (EUR million) In addition: Svenska Skeppshypotek EUR 32.2 million Gross interest-bearing debt total EUR 187.8 100 (Dec 31, 2022: 189.3) million 21 90 15 80 Net interest-beari
Slide 31: Board decided on a second dividend distribution of EUR 0.23 per share
Aspo’s Board of Directors decided on a second dividend distribution of EUR 0.23 per share EUR Dividend, EUR EPS, EUR • On November 1, the Board of 0,8 0,76 Directors of Aspo Plc decided on the second dividend distribution of EUR 0,7 0.23 per share, based on the authorization of the Annual 0,61 0,61
Slide 32: Executive Summary
Executive Summary • Third quarter 2023 highlights - Aspo’s comparable operating profit more than doubled in Q3 compared to Q2. All businesses segments showed positive profitability development - Aspo’s Q3 figures show evidence of strong financial resilience. The core business of Aspo generates stron
Slide 33: Q&A
Q&A
Slide 34: Appendix
Appendix < .ASPO
Slide 35: Group total comparable operating profit was EUR 7.9 million in Q3
Group total comparable operating profit was EUR 7.9 million in Q3 MEUR Net sales, Group total MEUR Comparable operating profit, Group total 220 35% 18 18% 200 30% 16 16% 180 25% 14 14% 160 20% 12 12% 140 15% 120 10% 10 10% 100 5% 8 8% 80 0% 6 6% 60 -5% 4 4% 40 -10% 20 -15% 2 2% 0 -20% 0 0% Q1/21 Q2/
Slide 36: Return on equity adjusted by items affecting comparability at 13.6%
Return on equity adjusted by items affecting comparability at 13.6% ROE % Rep. ROE (cum.) Adj. ROE (cum.) 40 • Return on equity adjusted by the 35 34 items affecting comparability was 32,3 13.6% (30.1%) 30,1 30,8 30 26,8 • Reported ROE was 4.9% (23.7%). 25,3 ROE was on a modest level and 25 driven e