Aspo Plc · OMXHEX:ASPO
Aspo — Q1 2023 Earnings Presentation
30 slides from Aspo's earnings presentation, May 3, 2023
Slide 1: Aspo Group Q1 2023 interim report
Aspo Group Q1 2023 interim report Growth and stable profitability CEO Rolf Jansson May 3, 2023 1
Slide 2: Growth and stable profitability Q1 2023
Growth and stable profitability Q1 2023 Net sales, Group total EUR 147.5 million (162.2) • Net sales from continuing operations increased by 10% to EUR 141.6 (128.8) million 5-10 % growth target. Net sales, continuing operations • Comparable operating profit from continuing EUR 141.6 million (128.
Slide 3: Aspo's continuing operations showed 10% growth
Aspo’s continuing operations showed 10% growth MEUR Net sales Growth % 160 40% • In Q1 2023, Aspo’s net sales from continuing operations increased by 140 35% 10% to EUR 141.6 (128.8) million 120 30% - ESL Shipping’s net sales somewhat decreased due to a more challenging business 100 25% environment
Slide 4: Comparable operating profit for continuing operations stable
Comparable operating profit for continuing operations stable MEUR Comp. oper. profit Comp. oper. profit % • Comparable operating profit from 14 14% continuing operations was EUR 8.4 (8.7) million and the comparable 12 12% operating profit rate was 5.9% (6.7%). - The operating profit developed 10 10%
Slide 5: Group total net sales and comparable operating profit in decline
Group total net sales and comparable operating profit in decline MEUR Net sales, Group total MEUR Comparable operating profit, Group total 220 40% 16 16,0 % 200 35% 14 14,0 % 180 30% 12 12,0 % 160 25% 140 20% 10 10,0 % 120 15% 8 8,0 % 100 10% 80 5% 6 6,0 % 60 0% 4 4,0 % 40 -5% 2 2,0 % 20 -10% 0 -15%
Slide 6: Items affecting comparability totaled EUR +0.5 million in Q1 2023
Items affecting comparability totaled EUR +0.5 million in Q1 2023 vs. EUR –4.9 million in Q1 2022 MEUR • In the first quarter of 2023, items affecting comparability totaled EUR 0.5 million. - EUR 0.2 million of the items were reported in the Leipurin segment and consisted of the sales gain of the sa
Slide 7: Operating profit, Group total was EUR 8.5 million in Q1 2023
Operating profit, Group total was EUR 8.5 million in Q1 2023 and EUR 10.1 million in Q1 2022 In EUR million Continued Discontinued of which Non- Group total operations operations core businesses Comparable operating 8.4 (8.7) -0.4 (6.3) -0.4 (6.5) 8.0 (15.0) profit Items affecting 0.2 (-4.7) 0.3 (-0
Slide 8: Cash flow development remained strong
Cash flow development remained strong MEUR Cash flow development, Group total 70 • Net cash from operating activities was EUR 12.2 (15.2) million for Q1 2023. All core business of Aspo contributed to the solid cash 60 flow. 50 • The impact of the change in working capital on cash flow was EUR -0.6 (
Slide 9: ROE close to target and last year's level
ROE close to target and last year’s level ROE % Reported return on equity, Group total 25 • Return on equity adjusted by the items affecting comparability was Target >20% 18.6% (34.0%). Reported ROE was 20 19.7% (21.2%). • ROE was on a similar level as last 15 year, considering: - The fairly flat pr
Slide 10: Aspo's risk exposure related to Russia's invasion has been mitigated
Aspo’s risk exposure related to Russia’s invasion has to a large extent been mitigated • After receiving the required approvals from the Russian authorities, Telko received the funds for the sale of the share capital of its Russian subsidiary to Russian industrial operator GK Himik on April 19, 2023
Slide 11: Promising development of sustainability KPIs continued
Promising development of sustainability KPIs continued • Aspo's key target is to reduce carbon intensity, CO2 (tn) per net sales Carbon intensity, LTM (EUR thousand), by 30% by 2025. Starting level (2020) was 0.44 and target level for 2025 is 0.30. 0.32 (0.33 in 2022) • During the last 12 months, th
Slide 12: Aspo's core business segments
Aspo’s core business segments Forerunner and Accelerated growth Towards full potential industrial partner Discontinued operations (incl. Non-core businesses) Non-core businesses include: Telko Russia and Belarus, Leipurin Russia, Belarus and Kazakstan, ESL Shipping Russia, and Kauko GmbH. In additio
Slide 13: Satisfactory profitability development considering the business environment
Satisfactory profitability development considering the business environment Aspo Q1 2023 May 3, 2023 13
Slide 14: Lack of vessel capacity, the strike, and decline in supramax demand impacted ESL Shipping's sales
Lack of vessel capacity, the strike, and decline in supramax demand impacted ESL Shipping’s sales negatively MEUR Net sales Growth % • In Q1, ESL Shipping’s net sales decreased by 7% from the 70 60% previous year to EUR 52.7 (56.8) million. 65 • Handysize vessels had stable volume demand, but coaste
Slide 15: Measures to accelerate ESL Shipping's green transition
Measures to accelerate ESL Shipping’s green transition • Aspo‘s Board of Directors has decided to initiate a program to support and accelerate ESL Shipping’s low-carbon growth strategy. • The green transition will offer ESL Shipping significant growth opportunities and subsequently require new finan
Slide 16: The Baltic Dry index has increased since mid February
The Baltic Dry index has increased since mid February Baltic dry index Baltic handysize index Baltic supramax index Source: Baltic dry Index, banchero costa network April 28, 2023. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. The Baltic Dry Index
Slide 17: Profitability remained satisfactory, despite a more challenging business environment
Profitability remained satisfactory, despite a more challenging business environment Comp. oper. profit Comp. oper. profit % MEUR 12 24% • In Q1, the comparable operating profit decreased to EUR 6.0 (7.9) million, with comparable operating profit rate being 11.4% (13.9%). 10 20% • Despite being lowe
Slide 18: Growth and modest profit improvement
Growth and modest profit improvement Aspo Q1 2023 May 3, 2023 18
Slide 19: Telko on a healthy organic and non-organic growth path
Telko on a healthy organic and non-organic growth path MEUR Net sales Growth % 70 30% • In Q1, Telko’s net sales increased with 7% to EUR 54.3 (50.6) million. • Organic growth and the acquisition of Eltrex contributed positively to 60 25% Telko’s sales growth, whereas the war had a clearly negative
Slide 20: Modest improvement in operating profit
Modest improvement in operating profit MEUR Comp. oper. profit Comp. oper. profit % 5 10% • In Q1, Telko’s comparable operating profit increased to EUR 2.7 (2.6) million, and its comparable operating profit rate was 5.0% (5.1%). Target 8 % • Healthy profitability development in chemicals and 4 8% lu
Slide 21: Positive sales growth and profitability development
Positive sales growth and profitability development Aspo Q1 2023 May 3, 2023 21
Slide 22: Growth driven by the Kobia acquisition and inflation
Growth driven by the Kobia acquisition and inflation MEUR Net sales Growth % 45 70% • In Q1, Leipurin’s net sales increased by 62% to EUR 34.6 (21.4) million, despite the divestment of Vulganus. 40 60% • The increase in raw material prices in global markets 35 50% continued to positively impact on L
Slide 23: Leipurin continues on a positive profitability improvement trend
Leipurin continues on a positive profitability improvement trend MEUR Comp. oper. Profit Comp. oper. profit % 1,2 6% • Leipurin’s comparable operating profit for the first quarter stood at EUR 1.0 (0.1) million, and the comparable operating profit rate was 2.9% (0.5%). Target 5 % Excluding Vulganus,
Slide 24: Discontinued operations, including non-core businesses
Discontinued operations, including non-core businesses Aspo Q1 2023 May 3, 2023 24
Slide 25: Net sales and profitability of the discontinued operations declined
Net sales and profitability of the discontinued operations declined MEUR Net sales Growth % MEUR Comp. oper. Profit Comp. oper. profit % 40 70% 7 25% 35 50% 6 20% 30 30% 5 15% 25 10% 4 10% 20 -10% 3 5% 15 -30% 2 0% 10 -50% 1 -5% 5 -70% 0 -10% 0 -90% -1 -15% Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22
Slide 26: Aspo's financial position
Aspo’s financial position Aspo Q1 2023 May 3, 2023 26
Slide 27: Aspo's balance sheet KPI's strengthened further
Aspo's balance sheet KPI’s strengthened further Equity ratio % Gearing % 40 200 • Net interest-bearing debt was Gearing target <130 % EUR 156.7 (155.7) million and 35 180 gearing decreased to 106.0% (108.4%). 30 160 • The Group’s equity ratio at the end of the review period was 25 140 34.8% (34.7%).
Slide 28: Strong liquidity combined with balanced maturity structure
Strong liquidity combined with balanced maturity structure Interest-bearing debt incl. lease MEUR Maturity profile liabilities (mEUR) 100 90 80 Net interest- bearing debt total 20 1 70 EUR 156.7 (155.7) 15 60 million 50 40 Avg interest rate 3.7% (1.3%) 30 156 20 10 Term loans Bonds Lease liabilities
Slide 29: All businesses in a good position to execute their strategies
All businesses in a good position to execute their strategies • The green transition will offer ESL Shipping significant growth opportunities, and Aspo has initiated a program to support and accelerate ESL Shipping’s low-carbon growth strategy. • Telko compensates for the lost business in Russia and
Slide 30: Q&A
Q&A 30