Slide 1: Aspo Q2
Aspo Q2 August 14, 2019 CEO Aki Ojanen
Slide 2: Aspo Q2
Aspo Q2 2 Q2 August 14, 2019 Net sales grew by 13.9% Operating profit decreased and were at EUR 151.2 Profit for Q2 was EUR 4.0 and was EUR 4.1 (7.1) (132.7) million. (5.4) million. million. Net sales for January-June Operating profit for H1 was Earnings per share for H1 2019 stood at EUR 292.7 EUR
Slide 3: Net sales by quarter
3 Q2 August 14, 2019 Net sales by quarter Net sales increased and were MEUR at EUR 151.2 (132.7) million. 180 157 160 151 142 The acquisition of AtoB@C- 140 132 133 136 124 127 has increased net sales 120 119 115 especially in Scandinavia and 100 Finland. 80 60 40 In H2 2019, both Telko’s 20 and Lei
Slide 4: Operating profit by quarter
4 Q2 August 14, 2019 Operating profit by quarter Operating profit was EUR 4.1 MEUR (7.1) million. 10 The decrease in operating profit 8 *) 7,1 7,1 7,2 7,4 was a disappointment, with 6,5 ESL Shipping significantly 6 missing the target. 5,1 4,9 4,4 4,1 4 3,7 Operating profit for 2 2,6 H1 2019 was EUR
Slide 5: Long-term financial targets
5 Q2 August 14, 2019 Long-term financial targets % Operating profit, %, cumulative Operating profit was 2.7% 8 (5.4) 7 6 *) 5 4,5 4,6 4,7 4,7 4,4 The target level is 3,7 3,9 4 3,5 7% by 2020. 3,2 3,8 3,1 3 2 1 0 2017 2018 2019 The target level is Q1 Q1-Q2 Q1-Q3 Q1-Q4 indicated by the dashed line. *)
Slide 6: Long-term financial targets
6 Q2 August 14, 2019 Long-term financial targets % Return on equity (ROE), cumulative Return on equity was 13.1% (13.5). 20 18 16,7 17,1 16 15,6 14,6 14 13,4 13,5 13,1 Target level is 12,4 *) 11,7 12 over 20% on average by 2020. 10 8 7,0 6 4 2 0 2017 2018 2019 The target level is Q1 Q1-Q2 Q1-Q3 Q1-Q
Slide 7: Long-term financial targets
7 Q2 August 14, 2019 Long-term financial targets % Gearing Gearing increased to 196.1% (118.6). 200 196 181 180 Gearing increased as a result of 160 155 154 the investments and acquisition 140 made in 2018. 114 110 119 120 104 103 100 94 80 60 Due to the adoption of the 40 IFRS 16 standard, gearing
Slide 8: Aspo is a balanced entity
8 Q2 August 14, 2019 Aspo is a balanced entity Net sales by segment, Q2 2019 Net sales by market area, Q2 2019 Finland 51.9 MEUR 12 % 28 % ESL Shipping 42.6 Scandinavia 22.7 MEUR 34 % MEUR Leipurin 28.0 MEUR Baltic countries 14.2 53 % 30 % MEUR Telko 80.6 MEUR Russia, other CIS 19 % countries and Uk
Slide 9: Russia, other CIS countries and Ukraine
9 Q2 August 14, 2019 Russia, other CIS countries and Ukraine MEUR 50 In the eastern markets, net 46,2 45,6 47,5 44,5 sales decreased and were 45 43,2 42,3 EUR 44.5 (46.2) million. 39,3 40,1 40 37,9 35 32,6 30 ESL Shipping exceptionally 25 had no net sales in Russia 20 because iron pellet deliveries
Slide 10: ESL Shipping
10 Q2 August 14, 2019 ESL Shipping Leading marine logistics provider for bulk cargo
Slide 11: ESL Shipping Q2
11 Q2 August 14, 2019 ESL Shipping Q2 Freight rates of dry bulk cargo still at a Net sales increased substantially and were clearly lower level than in Q2 2018. EUR 42.6 (22.6) million. Net sales grew by 89%. Steel industry’s transport levels were also The growth was mainly due to the acquisition do
Slide 12: ESL Shipping key figures Q2
12 Q2 August 14, 2019 ESL Shipping key figures Q2 Net sales increased by MEUR Net sales 89% and were EUR 42.6 (22.6) 50 46,4 million. 45 43,7 42,6 40 The impact of the acquisition 35 30,6 on the increase was EUR 20.3 30 million. 25 22,6 22,6 20,5 20 18,9 19,5 18,3 15 10 Increase in vessel capacity 5
Slide 13: ESL Shipping key figures Q2
13 Q2 August 14, 2019 ESL Shipping key figures Q2 Operating profit decreased MEUR Operating profit 5,0 and was EUR 2.6 (4.3) 4,5 4,3 million. 4,1 4,0 4,2 4,0 3,5 3,3 Operating profit rate was 3,0 3,1 3,2 6.1% (19.0). 3,0 2,6 2,6 2,5 2,0 1,5 Operating profit was reduced 1,0 by the financial result of
Slide 14: Baltic Dry Index
14 Q2 August 14, 2019 Baltic Dry Index
Slide 15: Leipurin
15 Q2 August 14, 2019 Leipurin From bread and recipes to a comprehensive selection
Slide 16: Leipurin Q2
16 Q2 August 14, 2019 Leipurin Q2 The market for industrially packed bread continued to decline in the western market. The market of in-store bakeries and baking units Net sales decreased and were EUR 28.0 (31.2) continued to grow. million. Bakery business net sales increased slightly, The market of
Slide 17: Leipurin key figures Q2
17 Q2 August 14, 2019 Leipurin key figures Q2 MEUR Net sales Net sales decreased and were 35 32,9 EUR 28.0 (31.2) million. 30,2 31,2 31,6 29,4 30,1 29,9 30 28,0 28,0 25,9 Net sales were impacted by 25 considerable decrease in machinery net sales. 20 15 10 5 Most of the machinery business orders in 2
Slide 18: Leipurin key figures Q2
18 Q2 August 14, 2019 Leipurin key figures Q2 MEUR Operating profit 1,6 Operating profit was 1,4 1,4 EUR 0.6 (0.9) million. 1,2 Operating profit rate was 1 0,9 2.1% (2.9). 0,8 0,8 0,8 0,8 0,7 0,6 0,6 0,6 0,5 0,4 0,4 0,2 Leipurin’s operating profit is 0 expected to increase in 2019. 2017 2018 2019 Q1
Slide 19: Net sales in Russia, other CIS countries and Ukraine
Net sales in Russia, other CIS countries 19 Q2 August 14, 2019 and Ukraine MEUR Net sales in the market area MRUB Net sales of the Russian company 14,0 800 693 11,8 700 12,0 10,3 600 562 10,0 535 9,0 514 8,3 8,1 8,3 8,6 8,3 484 478 481 475 8,2 500 456 452 8,0 7,7 400 6,0 300 4,0 200 2,0 100 0,0 0 20
Slide 20: Telko
20 Q2 August 14, 2019 Telko Raw material solutions for the industry Aspo has changed its segment reporting so that Kauko is reported as part of the Telko segment starting from January 1, 2019.
Slide 21: Telko Q2
21 Q2 August 14, 2019 Telko Q2 The operating environment mainly remained Net sales of Telko segment increased by 2% unchanged although the economic growth in and were EUR 80.6 (78.9) million. eastern markets showed signs of slowing down. The sales volume increase was higher than Process of recruitin
Slide 22: Telko key figures Q2
22 Q2 August 14, 2019 Telko key figures Q2 MEUR Net sales 90 Net sales of Telko segment *) 80,6 were EUR 80.6 (78.9) million. 80 *) 71,7 71,9 69,5 70 65,7 67,3 65,6 67,3 63,6 60 57,7 50 The increase in net sales in 40 Telko operations was driven by 30 growth in sales volume in several market areas.
Slide 23: Telko key figures Q2
23 Q2 August 14, 2019 Telko key figures Q2 MEUR Operating profit Operating profit for Telko 4,0 segment decreased and was 3,6 3,4 EUR 2.3 (3.2) million. 3,5 3,1 3,0 3,0 2,9 *) 2,5 2,4 2,4 2,3 2,3 2,2 Operating profit of Telko 2,0 operations was EUR 2.2 (3.6) 1,5 million and the operating profit rate
Slide 24: Net sales in Russia, other CIS countries and Ukraine
Net sales in Russia, other CIS countries and 24 Q2 August 14, 2019 Ukraine MEUR Net sales in the market area MRUB Net sales of the Russian company 40,0 1400 35,3 34,8 35,5 1258 34,4 1195 1211 35,0 33,5 1200 1149 30,4 31,0 29,2 1029 30,0 28,7 982 967 1004 1000 888 25,0 24,0 794 800 20,0 600 15,0 400
Slide 25: Guidance for 2019
25 Q2 August 14, 2019 Guidance for 2019 Aspo’s operating profit will be EUR 24–30 (20.6) million in 2019.
Slide 26: Additional material
ft ASPO Additional material
Slide 27: Net cash from operating activities
27 Q2 August 14, 2019 Net cash from operating activities MEUR 25,0 20,3 Net cash from 20,0 17,4 operating activities was 14,6 EUR 14.6 (-1.2) million. 15,0 10,0 7,6 5,7 5,0 3,5 1,9 0,0 -1,2 -1,2 Adoption of IFRS 16 increased -5,0 -3,2 the Group’s net cash from operating activities by -10,0 2017 2018
Slide 28: Equity ratio and gearing
28 Q2 August 14, 2019 Equity ratio and gearing % Gearing at Aspo group was 45 250,0 196% (119). 40 35 200,0 Equity ratio was 30 26% (33). 150,0 25 20 100,0 15 As a result of the adoption of 10 50,0 IFRS 16, gearing increased by 5 approximately 30 percentage points and the equity ratio 0 0,0 Q1/17 Q2
Slide 29: Structure of liabilities
29 Q2 August 14, 2019 Structure of liabilities Interest bearing liabilities Interest bearing liabilities without lease liabilities without lease liabilities June 30, 2018: 146 MEUR June 30, 2019: 204 MEUR 8% Loans 2% 5% Loans 5% 3% 4% Commercial Commercial papers 15 % papers Others Others 18 % TyEL
Slide 30: Maturity of significant loan agreements
30 Q2 August 14, 2019 Maturity of significant loan agreements MEUR 90 The average interest rate of 1,4 interest-bearing liabilities, 80 excluding lease liabilities, was 70 1.5% (1.6 12/2018). 25,0 1,4 60 TyEL pension loan 11,0 50 Bond 20,0 40 Hybrid bond (call) 20,0 70,9 Revolving credit facilities
Slide 31: Shareholders / allocation
31 Q2 August 14, 2019 Shareholders / allocation Number of shareholders Distribution of ownership on June 30, 2019 by ownership group, % 10 000 9 809 3% 1% 9 800 9 600 9 502 20 % Institutions 9 400 9 236 Group Executive 9 200 1% Committee 9 060 9 000 8 929 Board 53 % 22 % 8 800 Private investors 8 60
Slide 32: IFRS 16 Leases standard, as of January 1, 2019
IFRS 16 Leases standard, as of 32 Q2 August 14, 2019 January 1, 2019 Lease liabilities to be classified as debt that is recognized in interest- Interest-bearing debt (-) bearing liabilities in the balance sheet. and right-of-use assets (+) recognized in balance sheet for a total increase Right-of-us
Slide 33: IFRS 16: The impact on the statement of comprehensive income in brief
IFRS 16: The impact on the statement of 33 Q2 August 14, 2019 comprehensive income in brief Aspo Group consolidated statement of comprehensive income 1-6/2019, MEUR Amount of leases reduces. EBITDA increases. Net sales and other income 292.9 Depreciation and impairment Materials and services -194.8
Slide 34: IFRS 16 impact on balance sheet on June 30, 2019
IFRS 16 impact on balance sheet 34 Q2 August 14, 2019 on June 30, 2019 Main new balance sheet specifications: Assets: • Right-of-use assets related to lease agreements • Current and non-current lease liabilities Right-of-use assets related • Further minor changes to finance leases to lease agreement