Slide 1: Solid Q4 2023, strengthening the platform for future growth
Aspo Group 2023 financial statement release Solid Q4 2023, strengthening the platform for future growth CEO Rolf Jansson February 16, 2024
Slide 2: Solid Q4 2023, strengthening the platform for future growth
Solid Q4 2023, strengthening Q4 2023 Full-year 2023 the platform for future growth • Net sales from continuing operations decreased 4% in 2023 Net sales, continuing operations (14% decline in Q4/2023) EUR 132.2 million (152.9) EUR 536.4 million (560.7) • Comparable operating profit from continuing o
Slide 3: 2023 sustainability targets: Emission intensity nearly achieved, excellent employee safety
2023 sustainability targets: Emission intensity nearly achieved, excellent development in employee safety • 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 0.37 (0.33 in 2022) - Target l
Slide 4: Q4 2023 net sales from Aspo's continuing operations in decline against previous year
Q4 2023 net sales from Aspo’s continuing operations in decline against previous year MEUR Net sales Growth % 200 35% • For full-year 2023, net sales from 180 30% continuing operations decreased by 4% to EUR 536.4 (560.7) million 160 25% • In Q4 2023, Aspo’s net sales 140 20% from continuing operatio
Slide 5: Aspo's comparable operating profit continued relatively flat in Q4 2023 vs. Q3 2023
Aspo’s comparable operating profit continued relatively flat in Q4 2023 vs. Q3 2023 MEUR Comp. oper. profit Comp. oper. profit % • In 2023, comparable operating profit 14 14% from continuing operations was EUR 26.2 (43.9) million, and the comparable operating profit rate was 12 12% 4.9% (7.8%) 10 10
Slide 6: By end of year 2023 all Aspo's discontinued operations have been exited or written down
By end of year 2023 all Aspo’s discontinued operations have been either exited or written down 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% Q1/21 Q2/21 Q3/21
Slide 7: Items affecting comparability, totaling EUR -16.7 million in 2023
Items affecting comparability, totaling at EUR -16.7 million in 2023, mostly relate to the discontinued businesses Operating profit bridge, continuing operations 1-12/2023 • In Q4 Items affecting comparability totaled EUR -7.1 (-16.1) MEUR million at Group total level 30 26.2 25.9 - EUR -0.4 million
Slide 8: Strong cash flow development in 2023, despite lower profitability
Strong cash flow development in 2023, despite lower profitability than in years 2021 and 2022 • Net cash from operating activities was EUR 47.6 MEUR Cash flow development, Group total million (67.7) 70 - Cash flow of all businesses was positive - Decline from the comparative period in from ESL Shipp
Slide 9: Erkka Repo starts as Aspo's CFO
Erkka Repo starts as Aspo’s CFO • Erkka Repo (M.Sc. Econ.) starts as Aspo Group’s Chief Financial Officer and a member of Aspo's Group Executive Committee - During the last three years Repo has worked as VR Group’s CFO and as a member of VR Group’s management team. - Repo has more than 20 years of e
Slide 10: ESL Shipping's volumes picked up after the summer impacting operating profit positively
ESL Shipping’s volumes picked up after the summer impacting operating profit positively
Slide 11: 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 operating models and financial instruments Strong capabilities for serving the specific Business intellige
Slide 12: As expected, ESL Shipping's net sales picked up from previous quarter
As expected, ESL Shipping’s net sales picked up from previous quarter • In 2023, ESL Shipping’s net sales decreased by 23% from the comparative MEUR Net sales Growth % period, amounting to EUR 189.0 (245.4) million 90 50% • In Q4, ESL Shipping’s net sales decreased by 22% from the comparative period
Slide 13: Market indices recovered during Q4
Market indecies recovered during Q4 Baltic Supramax index Baltic dry index Baltic Handysize index Source: Baltic dry Index, banchero costa network February 9, 2024. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. The Baltic Dry Index takes into accou
Slide 14: Profitability improved, despite difficult weather conditions and inefficient port operations
Profitability improved, despite difficult weather conditions, the Finnish labor market and inefficient port operations Comp. oper. profit Comp. oper. profit % MEUR • In 2023, the comparable operating profit decreased to EUR 12 24% 18.3 (37.4) million and the comparable operating profit rate was 9.7%
Slide 15: Minority investment further accelerates ESL Shipping's green transition
Minority investment further accelerates ESL Shipping's green transition • Varma Mutual Pension Insurance Company co-invests EUR 15 million alongside OP Finland Infrastructure LP • The co-investment by Varma is made with the same valuation and terms as agreed between Aspo and OP Finland Infrastructur
Slide 16: Telko's profitability improved in Q4 from a fairly soft level previous year
Telko’s profitability improved in Q4 from a fairly soft level previous year
Slide 17: 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 via both cooperation with long-term partners add-ons and new growth platforms Uniform business model with Actions for incre
Slide 18: Telko able to take market share in a fairly soft, but stable market
Telko able to take market share in a fairly soft, but stable market • In 2023, net sales increased by 1% from the comparative period, MEUR Net sales Growth % amounting to EUR 211.3 (209.4) million 80 30% • In Q4, Telko’s net sales decreased by 10% from the comparative 70 25% period to EUR 49.0 (54.3
Slide 19: Stable price development and Telko's investment in scalability supported profit in Q4
Stable price development and Telko’s investment in scalability and growth, supported profit generation in Q4 MEUR Comp. oper. profit Comp. oper. profit % • In 2023, the comparable operating profit decreased to EUR 5 10% 9.0 (11.3) million and the comparable operating profit rate was 4.3% (5.4%) • In
Slide 20: The transformation of Leipurin continues
The transformation of Leipurin continues
Slide 21: 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: Development of commercial, Successful Kobia integration to support supply chain and sourcing capabilities cross sales and scale benefits Prioritized growth initiati
Slide 22: Leipurin experienced in Q4 a decline in sales driven by commodity categories
Leipurin experienced in Q4 a decline in sales driven by commodity categories as well as the during year 2023 weakening SEK MEUR Net sales Growth % 45 70% • In 2023, net sales increased by 29% from the comparative period, amounting to EUR 136.1 (105.9) million 40 60% • In Q4, Leipurin’s net sales dec
Slide 23: Q4 profit suffered from pricing adjustments, inventory write-offs and production challenges
Q4 profit suffered from pricing adjustments in certain categories, inventory write-offs as well as short-term production challenges MEUR Comp. oper. profit Comp. oper. profit % 1,6 8% • In 2023, the comparable operating profit increased to EUR 4.2 (1.1) million and the comparable operating 1,4 7% pr
Slide 24: Divestment of the bakery equipment trading business
Divestment of the bakery equipment trading business • In October 2023, Leipurin signed 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 industry and
Slide 25: Leipurin exit from Russia, Belarus and Kazakhstan
Leipurin exit from Russia, Belarus and Kazakhstan • Aspo is still in the process of selling Leipurin entities in Russia and Kazakhstan to Timur Akhiyarov, a Russian-born private investor. • However, as the sales process has prolonged and there is a lot of uncertainty around the transaction, Aspo has
Slide 26: Aspo's financial position, summary of year 2023, dividend proposal and guidance for 2024
Aspo’s financial position, summary of year 2023, dividend proposal and guidance for 2024
Slide 27: Gearing and equity ratio remains aligned with target levels
Gearing and equity ratio remains aligned with target levels Equity ratio % Gearing % 40 200 • Gearing increased to Gearing target <130 % 117.6% (108.4%) 35 180 • The Group’s equity ratio at the end of the year stood at same level as 30 160 last year 34.4% (34.7%) 25 140 20 120 15 100 10 80 5 60 0 40
Slide 28: 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 26.2 million (undrawn facility) Gross interest-bearing debt total EUR 195.9 100 (189.3) million 23 90 15 80 Net interest-
Slide 29: Dividend proposal from the Board of Directors
Dividend proposal from the Board of Directors EUR Dividend, EUR EPS, EUR • The Board of Directors proposes to 0,8 0,76 the Annual Shareholders’ Meeting of Aspo Plc to be held on April 12, 2024 that EUR 0.24 per share be 0,7 distributed in dividends for the 0,61 0,61 2023 financial year. 0,6 0,57 0,5
Slide 30: Executive Summary
Executive Summary • Full year and fourth quarter 2023 highlights - Aspo’s Group total comparable operating profit for year 2023 was EUR 26.5 million compared to Aspo’s latest guidance of EUR 25-30 million - Aspo’s Q4 figures came in solid and contributed EUR 7.0 million to the Group total comparable
Slide 31: Guidance for 2024
Guidance for 2024 Aspo Group’s comparable operating profit will be > EUR 30 million in 2024 (EUR 26.5 million in 2023). Aspo Q4 and full-year 2023 Feb 16, 2024 31
Slide 32: Welcome to Aspo's Capital Markets Day
Welcome to Aspo’s Capital Markets Day on Tuesday, 14 May 2024 in Helsinki Aspo Q4 and full-year 2023 Feb 16, 2024 32
Slide 33: Q&A
Q&A
Slide 34: Appendix
Appendix < .ASPO
Slide 35: Group total comparable operating profit was EUR 7.0 million in Q4
Group total comparable operating profit was EUR 7.0 million in Q4 MEUR Net sales, Group total MEUR Comparable operating profit, Group total 220 35% 18 18% 200 30% 16 16% 180 25% 14 14% 20% 160 15% 12 12% 140 10% 120 10 10% 5% 100 8 8% 0% 80 -5% 6 6% 60 -10% 4 4% 40 -15% 20 2 2% -20% 0 -25% 0 0% Q1/2
Slide 36: Return on equity adjusted by items affecting comparability at 12.8%
Return on equity adjusted by items affecting comparability at 12.8% ROE % Rep. ROE (cum.) Adj. ROE (cum.) 40 • Return on equity adjusted by the 35 34 items affecting comparability was 32,3 12.8% (30.8%). 30,1 30,8 30 26,8 • Reported ROE was 1.2% (15.2%). 25,3 ROE was on a modest level and 25 driven