Slide 1: Aspo’s year 2016 and Q4
Aspo’s year 2016 and Q4 February 15, 2017 CEO Aki Ojanen Group Treasurer Harri Seppälä
Slide 2: Aspo had good year 2016
Aspo had good year 2016 Net sales turned to growth Operating profit was EUR Aspo specified its financial and amounted to EUR 457.4 20.4 million (20.6). targets: million (445.8). Net sales in H2 increased Operating profit increased Aspo aims to reach the by 13% from H1. in Q4. targets by 2020. Net sa
Slide 3: Operating profit Q4 increased
Operating profit Q4 increased Operating profit MEUR Operating profit Q4 was 28 EUR 6.3 million (6.2). 24 23.4 20.6 20.4 Q1 20 17.9 Q1-Q2 16 14.4 14.1 Q1-Q3 12 10.1 Telko, Leipurin and Other 8.1 Q1-Q4 operations improved their 8 7.1 operating profit. 3.8 3.3 4 3.0 Operating profit of ESL 0 Shipping a
Slide 4: Long-term financial targets: Operating profit
Long-term financial targets Operating profit, % % Operating profit rate 8 improved towards the end 7 of the year. Q1 6 Whole year almost at the 5.0 4.8 Q1-Q2 comparative period’s level. 5 4.4 4.4 4.6 4.5 4.2 3.8 Q1-Q3 4 3.5 3.4 3.3 Target level (2020) is 7%. 2.9 Q1-Q4 3 2 1 0 2014 2015 2016 Q4 Febru
Slide 5: Long-term financial targets: Return on equity
Long-term financial targets Return on equity, (ROE) % ROE improved towards the 28 26.2 end of the year and was 24 14.6% (19.1). 20.8 20.1 Q1 ROE decreased partly due to 18.8 19.1 20 the strengthening of the 17.8 Q1-Q2 16 15.6 14.6 capital structure. 13.4 Q1-Q3 12 11.0 In the comparative period a 9.5
Slide 6: Long-term financial targets: Gearing
Long-term financial targets Gearing % Gearing decreased to 90% 140 (101). 124 119 115 120 112 111 109 101 100 105 101 104 Q1 100 90 Q1-Q2 80 Q1-Q3 60 Target level (2020) is at Q1-Q4 most 100%. 40 20 0 2014 2015 2016 Q4 February 15, 2017 6 The target level is indicated by the dashed line.
Slide 7: Net sales and operating profit 2012–2016
Net sales and operating profit 2012–2016 MEUR Net sales Operating profit MEUR The economic downturn in 500 481.6 476.3 482.9 50 445.8 457.4 western markets which started in 2012 has stopped 400 40 and the economy has 300 30 turned into growth. 200 20 The economic downturn in 100 10 Russia which star
Slide 8: Aspo represents a balanced entity
Aspo represents a balanced entity Net sales by segment 2016 Net sales by market area 2016 7% 14% Finland 149.4 MEUR 16% ESL Shipping 71.4 MEUR 33% Scandinavia 47.5 MEUR Leipurin 112.7 MEUR Baltic countries 50.4 MEUR 25% Telko 240.3 MEUR 32% 52% Kauko 33.0 MEUR Russia, Ukraine + other CIS 145.6 MEUR
Slide 9: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR Q4 net sales, EUR 42.0 45 41.7 41.2 42.0 million (34.7), is record 40 39.0 38.1 38.9 high. 35.0 34.7 Q1 35 32.2 Eastern market area 31.1 30 Q2 became Aspo’s largest 26.4 26.6 market area in Q4. 25 Q3 20 Q4 Net sales growth in eastern 15 markets
Slide 10: Net sales 2012–2016: Russia, Ukraine and other CIS
Net sales 2012–2016 Russia, Ukraine and other CIS countries MEUR 180 The euro-denominated net 157.8 sales in eastern markets 160 153.0 153.0 145.6 turned into growth in 2016, 140 128.3 which accelerated towards 120 the end of the year. 100 80 As of 2014 the net sales’ growth in local currencies 60 w
Slide 11: Profitable growth in Russia
Profitable growth in Russia Net sales of Aspo Russian companies MRUB 6,000 Annual net sales 5,000 growth 17% on 4,000 average 3,000 2,000 1,000 0 2009 2010 2011 2012 2013 2014 2015 2016 Net sales, MRUB Q4 February 15, 2017 11
Slide 12: ESL Shipping
ESL Shipping Leading marine logistics provider for bulk cargo Q4 February 15, 2017 12
Slide 13: ESL Shipping
ESL Shipping Q4 International freight rates are low. Turn for Net sales increased to EUR 20.6 million the better occurred. (19.9). The increase was due to the higher Profitability is based on special expertise transportation volumes and also the and unique services. strenghened US dollar which incre
Slide 14: ESL Shipping, key figures: Net sales
ESL Shipping, key figures Net sales MEUR Net sales Q4 increased to 25 23.2 EUR 20.6 million (19.9). 21.2 21.6 19.9 19.9 20.6 Freight volumes were 20 19.2 18.2 18.2 17.9 Q1 higher than in the 16.2 16.7 comparative period. Q2 15 Q3 10 Q4 Loading and unloading operations at sea were at a 5 normal level
Slide 15: ESL Shipping, key figures: Operating profit
ESL Shipping, key figures Operating profit MEUR Operating profit Q4 was 6 EUR 4.1 million (4.5). 5.2 4.8 The profitability was good 5 4.4 4.5 Q1 despite the difficult market 4.1 4 Q2 situation. 3.3 3.3 3.4 2.9 Q3 3 2.7 2.5 Supramax vessels turned 2.2 Q4 2 to produce a profit. Difficult weather condi
Slide 16: Baltic Dry Index 2012‒2016
Baltic Dry Index 2012‒2016 Source: Bloomberg Q4 February 15, 2017 16
Slide 17: Leipurin
Leipurin From bread and recipes to a comprehensive selection Q4 February 15, 2017 17
Slide 18: Leipurin
Leipurin Q4 The prices of raw materials important to Net sales amounted to EUR 30.7 million Leipurin remained at the comparative (31.5). Net sales decreased in bakery period’s level. machine operations and raw material operations in Poland. In eastern markets the net sales of bakery raw materials in
Slide 19: Leipurin, key figures: Net sales
Leipurin, key figures Net sales MEUR Net sales Q4 decreased to 40 36.1 EUR 30.7 million (31.5). 34.5 35 34.1 31.5 30.7 30.1 29.7 Q1 30 28.3 28.3 28.8 Net sales decreased in 26.2 27.0 Q2 every quarter in 2016. 25 20 Q3 Net sales of bakery raw 15 Q4 materials increased while 10 net sales of machine 5
Slide 20: Leipurin, key figures: Operating profit
Leipurin, key figures Operating profit MEUR Operating profit Q4 increased 2 1.9 to EUR 0.7 million (0.4). 1.8 1.7 Operating profit rate increased 1.6 Q1 to 2.3% (1.3). In Russia the 1.4 operating profit rate of raw Q2 1.2 materials was good. 1 Q3 0.8 Machine operations turned to 0.8 0.7 0.7 Q4 0.6 p
Slide 21: Net sales in Russia, Ukraine and other CIS countries
Net sales in Russia, Ukraine and other CIS countries Net sales in the market area Net sales of the Russian company MEUR MRUB 14.0 700 12.0 11.8 600 573 10.8 523 534 9.9 9.6 Q1 493 Q1 10.0 500 8.9 9.1 403 435 448 Q2 427 8.0 405 404 404 Q2 8.0 7.7 400 7.1 7.2 353 6.3 Q3 Q3 6.1 6.0 300 Q4 Q4 4.0 200 2.
Slide 22: Telko
Telko Raw material solutions for the industry Q4 February 15, 2017 22
Slide 23: Telko
Telko Q4 The prices of plastic raw materials Net sales increased by 21% to EUR 64.9 decreased and the prices of industrial million (53.6). chemicals increased. Net sales increased in both eastern and western markets. Operating profit increased to EUR 2.5 Net sales increased by 26% in Russia, million
Slide 24: Telko, key figures: Net sales
Telko, key figures Net sales MEUR Net sales Q4 increased by 70 62.2 63.8 64.9 21% to EUR 64.9 million 60.4 61.1 60 (53.6). 55.8 55.2 56.5 53.6 50.0 Q1 Net sales of the year 49.6 49.4 50 Q2 record-high. 40 Q3 30 Q4 Net sales increased in all market areas. 20 10 0 2014 2015 2016 Q4 February 15, 2017 2
Slide 25: Telko, key figures: Operating profit
Telko, key figures Operating profit MEUR Operating profit Q4 increased 3.5 3.2 3.2 to EUR 2.5 million (1.9). 3.0 3.0 3.0 Operating profit rate 2.8 2.5 Q1 increased to 3.9% (3.5). 2.5 2.3 2.3 2.3 2.1 Q2 Operating profit improved 2.0 1.8 1.9 especially in western markets. Q3 1.5 Q4 Operating profit ra
Slide 26: Net sales in Russia, Ukraine and other CIS countries
Net sales in Russia, Ukraine and other CIS countries Net sales in the market area Net sales of the Russian company MEUR MRUB 35.0 1400 29.9 31.4 31.5 30.0 28.5 28.6 1200 1155 27.8 27.0 24.2 25.0 Q1 1005 25.0 1000 946 Q1 20.7 850 870 864 Q2 Q2 20.0 19.4 19.3 800 Q3 707 691706 680 630 Q3 15.0 600 559
Slide 27: Kauko
Kauko The best tools for mobile knowledge work Q4 February 15, 2017 27
Slide 28: Kauko
Kauko Q4 Total sales of computers decreased in Net sales decreased to EUR 8.3 million Finland. (17.1). Special rugged computers and tablets During the comparative period, the net increased their share of total sales. sales were increased by project deliveries in China. Operating profit was EUR 0.0 m
Slide 29: Kauko, key figures: Net sales
Kauko, key figures Net sales Q4 decreased to Net sales MEUR EUR 8.3 million (17.1). 18 17.1 During the comparative 16 period large project Q1 14 12.8 deliveries in China. 12 Q2 10 9.5 Q3 8.6 8.5 8.3 Sales of energy-efficiency 7.5 8 7.1 7.1 6.8 6.7 Q4 equipment developed well. 6 5.5 Net sales of mobi
Slide 30: Kauko, key figures: Operating profit
Kauko, key figures Operating profit Operating profit Q4 was MEUR EUR 0.0 million (0.6). 1.0 0.5 0.6 0.5 0.5 0.0 0.1 0.1 0.0 0.0 Q1 -0.5 -0.2 -0.2 -0.3 -0.3 Q2 -1.0 Q3 Kauko has invested in -1.5 Q4 developing the organization and services of mobile -2.0 -2.0 knowledge work. -2.5 2014 2015 2016 Q4 Feb
Slide 31: Financials and financing
Financials and financing Harri Seppälä Q4 February 15, 2017 31
Slide 32: Income statement
Income statement MEUR Q1-Q4/2016 Q1-Q4/2015 Ebitda rate weakened. Net sales 457.4 445.8 Operating profit rate decreased Ebitda 32.0 33.1 to 4.5% (4.6) in Q1-Q4 and Depreciation, amortization and -11.6 -12.5 remained unchanged in Q4. impairment losses In 2015 operating profit Operating profit 20.4 20
Slide 33: Net cash from operating activities
Net cash from operating activities MEUR 30.0 Net cash from operating 25.0 25.0 22.0 activities Q4 was strong, EUR 20.0 18.7 million (14.3). 16.2 Q1 15.0 Cumulative net cash from 10.7 Q1-Q2 operating activities was EUR 10.0 6.2 16.2 million (25.0). 5.0 Q1-Q3 0.5 0.0 Q1-Q4 Change in working capital wa
Slide 34: Equity ratio and gearing
Equity ratio and gearing % % 38 140 Capital structure 37 strengthened. 120 36 100 35 Gearing 90% (101). 34 80 Equity ratio 37% (34). 33 60 32 40 Payments related to vessel 31 20 investments will total about 30 EUR 12 million in 2017. 29 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q
Slide 35: Structure of liabilities
Structure of liabilities Interest bearing liabilities on Interest bearing liabilities on December 31, 2015: 128 M€ December 31, 2016: 125 M€ 9% 9% 8% Loans 7% Loans Commercial papers 5% Commercial papers 6% 2% Others Others TyEL pension loan TyEL pension loan Bond Bond 75% 79% Q4 February 15, 2017 3
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 In Q4 financing agreements totaling EUR 50 million were 60.0 1.4 signed to finance the vessel 50.0 investment. 25.0 TyEL pension loan 40.0 1.4 Bond Hybrid bond (call) 30.0 20.0 1.4 Revolving credit facilities EUR 20 million revolving 1.4 Loans 20.0 1
Slide 37: Aspo market value
Aspo market value Share price development (closing price) Market value of shares EUR MEUR 10.00 300 9.00 8.18 250 8.00 7.00 200 6.00 5.00 150 4.00 3.00 100 2012 2013 2014 2015 2016 14.2.2017 2012 2013 2014 2015 2016 Q4 February 15, 2017 39
Slide 38: Dividend proposal 2016
Dividend proposal 2016 The Board of Directors’ Dividend will be paid Dividend distribution dividend proposal: in two installments: policy: EUR 0.42 / share EUR 0.21 / share in At least half of the April annual profit EUR 0.21 / share in distributed in November dividends on average. Q4 February 15, 2
Slide 39: Dividend and dividend yield
Dividend and dividend yield EUR % 0.60 12 Dividend yield of Aspo, 0.50 10 average 0.40 8 2006‒2016 0.30 6.3 % 6 0.20 4 Dividend yield of 0.10 Helsinki Stock 2 0.00 Exchange, average 2006 2007 2008 2009 2010 2011* 2012 2013 2014 2015 2016** -0.10 0 2006‒2016 Dividend, EUR Aspo, Dividend yield Helsink
Slide 40: General market outlook for 2017
General market outlook for 2017 • Uncertainty in markets has decreased. Uncertainty in the eastern • Industrial production is expected to grow in Aspo’s main markets may strongly market areas. influence to the currency • Prices of raw materials will remain low. rates. • Political risks may decrease
Slide 41: Guidance 2017
Guidance 2017 Aspo’s operating profit will be EUR 22-27 million (20.4) in 2017. Q4 February 15, 2017 43