Aspo Plc · OMXHEX:ASPO

Aspo — Q1 2011 Earnings Presentation

44 slides from Aspo's earnings presentation, May 11, 2011

  1. Slide 1: Aspo's Q1

    Aspo’s Q1 May 11, 2011 CEO Aki Ojanen CFO Arto Meitsalo Group Treasurer Harri Seppälä

  2. Slide 2: Growth in Group net sales

    Growth in Group net sales MEUR 120 106.7 100 83.4 78.4 80 60 40 20 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 2

  3. Slide 3: Net sales / segment

    Net sales / segment MEUR Change% 120 +28% 106.7 100 +28% 83.4 80 +39% 60 40 +19% 20 +18% 0 Q1/2010 Q1/2011 ESL Shipping Leipurin Telko Kaukomarkkinat

  4. Slide 4: Group operating profit

    Group operating profit MEUR 7 6 5 3.8 4 2.9 3 2.1 2 1 0 Q1/09 Q2/09* Q3/09** Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 * Including a total of EUR 2.4 million of non-recurring sales gains and losses **Including a total of EUR 3.2 million of non-recurring sales gain 4

  5. Slide 5: Operating profit / segment Q1

    Operating profit / segment Q1 MEUR Q1/11 Q1/10 Change ESL Shipping 0.4 1.4 -1.0 Leipurin 1.5 0.7 0.8 Telko 1.7 1.6 0.1 Kaukomarkkinat 0.4 -0.4 0.8 Other operations -1.1 -1.2 0.1 Total 2.9 2.1 0.8

  6. Slide 6: Net sales and operating profit

    Net sales and operating profit 2010/2011 Q1 Q2 Q3 Q4 Cum. Net sales 106.7 106.7 MEUR 83.4 99.2 104.2 109.1 395.9 Operating profit 2.9 2.9 MEUR 2.1 4.3 6.0 5.5 17.9 6

  7. Slide 7: Net sales / market area Q1

    Net sales / market area Q1 MEUR Q1/11 Q1/10 Change Finland 45.2 35.8 9.4 Scandinavia 10.9 11.2 -0.3 Baltic countries 11.2 9.0 2.2 Russia, Ukraine + other CIS 30.7 17.0 13.7 Other countries 8.7 10.4 -1.7 Total 106.7 83.4 23.3

  8. Slide 8: Net sales: Russia, Ukraine and other CIS countries

    Net sales Russia, Ukraine and other CIS countries Including ESL Shipping’s exports from Russia MEUR 45 38.3 40 35 30 25 22.0 18.3 20 15 10 5 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 8

  9. Slide 9: Q1 2011 and events after the reporting period

    Q1 2011 and events after the reporting period • Considerable growth in net sales and operating profit. • The second of the ordered supramax vessels has been financed with a bank loan. • The net sales of the business in Russia, Ukraine, and other CIS countries grew by 81%, standing at 29% of the Grou

  10. Slide 10: Aspo business operations

    Aspo business operations

  11. Slide 11: Integral part of Finnish security of supply

    Integral part of Finnish security of supply

  12. Slide 12: ESL Shipping key figures

    ESL Shipping key figures Q1/11 Q1/10 Change Net sales, MEUR 20.5 17.3 3.2 Operating profit, MEUR 0.4 1.4 -1.0 Personnel 179 186 -7 12

  13. Slide 13: ESL Shipping Q1 2011

    ESL Shipping Q1 2011 • International cargo price levels are still low. • The fleet was in full use. • The vessels operate with long-term price and cargo agreements. • Transport volumes and price levels were good. – Difficult ice conditions decreased operating profit significantly. – Total waiting ti

  14. Slide 14: Ice chart February 25, 2011

    Ice chart Yiteenjuatyoyt, ytueenajautarast taj hyvin tibed ajojaa Conselidated. compact ce very close ke (9-10V10) Sanmaofrwen konpakt February 25, 20 ee 6-70 [i] il ie ’ 35-50 RE) La aif a 25-40 4 Tatdrivis Sed, Pradlekkain ajautunus jut Avovesi <1/10 Rafiad ice (C ) ‘Hopskyutes is HARNOSANOY Sieta

  15. Slide 15: Expert in flavors and structures

    Expert in flavors and structures

  16. Slide 16: Leipurin key figures

    Leipurin key figures Q1/11 Q1/10 Change Net sales, MEUR 29.9 25.2 4.7 Operating profit, MEUR 1.5 0.7 0.8 Personnel 232 224 8 16

  17. Slide 17: Leipurin Q1 2011

    Leipurin Q1 2011 • The prices of basic food raw materials have risen. The prices of raw materials sold are on the increase but moderately. • Organic growth was visible in Leipurin. • Net sales for bakery raw materials grew by 17% and profitability improved. • Net sales for bakery machinery grew by 5

  18. Slide 18: Growing net sales in Russia, Ukraine and other CIS countries

    Growing net sales in Russia, Ukraine and other CIS countries MEUR 7 6 6,2 5 5,3 4,5 4 4,0 4,0 3 2,6 2 1 0 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10 Q1/11 Leipurin has been part of Aspo Group as of 5/2008 18

  19. Slide 19: Leading expert in chemicals and plastic raw materials

    Leading expert in chemicals and plastic raw materials

  20. Slide 20: Telko key figures

    Telko key figures Q1/11 Q1/10 Change Net sales, MEUR 48.1 34.5 13.6 Operating profit, MEUR 1.7 1.6 0.1 Personnel 225 191 34 20

  21. Slide 21: Telko Q1 2011

    Telko Q1 2011 • The prices of raw materials sold have continued to rise moderately. Problems have occurred in international delivery of some plastic raw materials due to heavy consumption in China. • Organic growth was visible in Telko. • Operating profit grew to EUR 1.7 million (1.6). The operating

  22. Slide 22: Growing net sales in Russia, Ukraine and other CIS countries

    Growing net sales in Russia, Ukraine and other CIS countries MEUR 20 18 17,8 16 14 12 11,3 10 9,7 8 6 6,5 6,0 4 2 2,9 0 Q1/06 Q1/07 Q1/08 Q1/09 Q1/10 Q1/11 22

  23. Slide 23: Expert in energy efficiency

    KAUKO MARKKINAT Expert in energy efficiency

  24. Slide 24: Kaukomarkkinat key figures

    Kaukomarkkinat key figures Q1/11 Q1/10 Change Net sales, MEUR 8.2 6.4 1.8 Operating profit, MEUR 0.4 -0.4 0.8 Personnel 90 87 3 24

  25. Slide 25: Kaukomarkkinat Q1 2011

    Kaukomarkkinat Q1 2011 • Net sales grew by 28%. • Operating profit was EUR 0.4 million (-0.4). • Far Eastern project sales and Finnish AV sales increased their net sales. • The order book and net sales for local energy equipment were good with regard to the season. The government’s pending decisions

  26. Slide 26: Financing

    Financing Harri Seppälä

  27. Slide 27: Equity ratio and gearing

    Equity ratio and gearing % 200 180 160 142,2 140 136,0 124,7 123,7 120 113,2 115,8 101,5 100 92,1 87,9 80 60 40 34,6 36,2 32,4 33,2 31,7 27,8 29,4 30,2 30,0 20 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Equity ratio Gearing 27

  28. Slide 28: Free cash flow

    Free cash flow Cumulative per year MEUR 40 35 20,9 30 25 20 9,8 15 13,0 10 9,6 8,6 5 6,8 6,0 0 2,0 2,2 -1,5 -0,9 -10,4 -10,7 -11,4 -2,9 -4,3 -5 -9,8 -0,1 -10 -15 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Operational cash flow Cash flow from investments 28

  29. Slide 29: Interest bearing liabilities and net debt

    Interest bearing liabilities and net debt MEUR 100 90 80 85,0 82,0 77,6 78,4 78,5 70 71,7 70,6 60 63,2 58,8 50 40 30 20 10 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Net debt Cash and cash equivalents 29

  30. Slide 30: Maturity of long-term loan portfolio

    Maturity of long-term loan portfolio MEUR 60 50 40 30 20 10 0 2011 2012 2013 2014 2015 2016+ Loans Pension loans Capital loans Revolving credit facilities Commercial papers, overdraft facilities, and lease agreements not included. 30

  31. Slide 31: Financing Q1 2011

    Financing Q1 2011 MEUR Total In use Revolving credit facilities 40.0 10.0 CP program 50.0 5.0 Cash and cash equivalents 6.4 During report period: The total amount of revolving credit facilities was reduced to EUR 40 million (EUR 50 million). Aspo signed a EUR 25 million loan agreement for ship finan

  32. Slide 32: Financials

    Financials Arto Meitsalo

  33. Slide 33: Income statement and key figures Q1

    Income statement and key figures Q1 MEUR 2011 2010 Net sales 106.7 83.4 Depreciations -2.0 -2.1 Operating profit 2.9 2.1 Net financial expenses -1.3 -1.1 Profit before taxes 1.5 1.0 Profit for the period 1.1 0.5 2011 2010 Earnings/share, EUR 0.04 0.02 Equity ratio, % 31.7 36.2 Equity/share, EUR 2.66

  34. Slide 34: Balance sheet

    Balance sheet Shareholders’ equity MEUR Assets & liabilities 250 250 227.3 227.3 190.5 190.5 200 60,1 200 75,5 52,8 65,4 150 150 45,4 30,4 80,9 100 100 56,4 121,8 50 107,3 50 68,7 70,9 0 0 Q1/10 Q1/11 Q1/10 Q1/11 Non-current assets Inventories Shareholders' equity Long-term liabilities Cash and rece

  35. Slide 35: Financial targets: ROI and ROE

    Financial targets Return on investment, return on equity Group on the whole ROI, % ROE, % 45 45 40 40 35 35 30 30 25 25 20 20 15 13,1 15 13,3 11,1 12,1 10,2 10 10 7,5 5,8 6,8 6,5 5 5 3,2 0 0 Q1/07 Q1/08 Q1/09 Q1/10 Q1/11 Q1/07 Q1/08 Q1/09 Q1/10 Q1/11 Target 35

  36. Slide 36: Financial targets: operating profit

    Financial targets Operating profit, % 8 7 6 5 4.0 4 3 5.8 4.8 5.00 2 4.4 4.3 3.0 3.0 2.5 2.70 1 0 -0,7 -1 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Excluding non-recurring sales gains and losses Non-recurring sales gains and losses Target 36

  37. Slide 37: Personnel Q1 2011

    Personnel Q1 2011 Share of Group personnel Distribution per country Other operations Russia, Other Kaukomarkkinat 2% ESL Shipping Ukraine, 10% 12% Finland 24% other 52% CIS 25% Telko Baltic 30% countries Leipurin 31% 9% Scandinavia 3% Personnel at end of period: 739

  38. Slide 38: Shareholders / allocation

    Shareholders / allocation Number of shareholders Share Q1/2011 Personnel fund 6000 5938 Non-domestic 0.2% Institutions & nominee 25.3% registrations 5000 2.6% 4000 3000 2000 1000 Manage- 0 ment Private investors Board 2.0% 62.0% 7.9% 38

  39. Slide 39: Market value

    Market value Share price, EUR Market value, EUR million (including own shares) Closing Average 10,00 250 239 8,85 222 8,26 8,00 200 177 6,80 170 6,44 156 5,90 6,00 150 106 4,03 4,00 100 2,00 50 0,00 0 39

  40. Slide 40: Share issue

    Share issue • The company collected about EUR 20 million in new equity with a rights issue implemented after the review period. • The share subscription price was EUR 5.20. • The shares were subscribed up to 120.8%. • A total of 98.6% was subscribed for by subscription right. • The number of new sha

  41. Slide 41: Outlook for 2011

    Outlook for 2011

  42. Slide 42: Expectations in Aspo Group in 2011

    Expectations in Aspo Group in 2011 • Net sales will grow by 10-20%. • Operating profit will improve. • The share of growth markets in Aspo’s net sales will continue to grow. • The construction of ESL Shipping’s Eira-class vessel will be completed in India during summer. The vessel will be leased wit

  43. Slide 43: Outlook for 2011

    Outlook for 2011 • Aspo changes its guidance. – New guidance for 2011: Aspo will increase its net sales by 10−20% and improve its operating profit. 43

  44. Slide 44: Thank you!

    Thank you!

Aspo — Q1 2011 Earnings Presentation on 6ix