Slide 1: Strong start for the year: Comparable operating profit nearly doubled
Aspo January-March 2022 Strong start for the year: Comparable operating profit nearly doubled CEO Rolf Jansson Aspo Q1 2022 May 4, 2022 1
Slide 2: Strong start for the year: All financial targets achieved
Strong start for the year: All financial targets set in the renewed strategy were achieved Net sales grew 24%, significantly over the target growth rate of 5-10% Q1/2022 • Growth accelerated by ESL Shipping’s strong transport demand Net sales, continuing operations and rising market prices in Telko’
Slide 3: Strong net sales growth of over 20%
Strong net sales growth of over 20% MEUR Net sales Growth % 220 30% • Group net sales grew by 23% and was 200 25% EUR 162.6 million 180 20% • The set target level of 5-10% growth was clearly esceeded 160 15% Target 5-10 % • Net sales already rose significantly 140 10% over the 2019 pre-pandemic leve
Slide 4: Record-high comparable operating profit rate of 9.2%
Aspo reached a record-high comparable operating profit rate of 9.2%, comparable operating profit nearly doubled MEUR Operating profit Growth % 16.0 12% • Group’s comparable operating profit was EUR 15.0 million (7.9) and 14.0 operating profit rate 9.2% (6.0), well 10% above the target level of 8%. 1
Slide 5: Q1 2022 items affecting comparability totaling EUR -4.9 million
Q1 2022 items affecting comparability totaling EUR -4.9 million • Sales gains from barge Espa EUR 1.5 million ESL Shipping EUR 1.3 million • Cost provisions of approximately EUR -0.2 million related to the shutdown of ESL Shipping’s operations in Russia • EUR -2.6 million in losses from the destruct
Slide 6: Cash flow development remained strong
Cash flow development remained strong MEUR 70 • Net cash from operating activities was EUR 15.2 million (6.6). 60 • Cash flow from all businesses 50 was strong during Q1 2022. • The impact of the change in 40 working capital on cash flow was EUR -0.6 million (-7.2). 30 • Free cash flow was EUR 13.8
Slide 7: Return on equity above the 20% target level
Return on equity above the 20% target level ROE % 35.0 • ROE adjusted by the items affecting comparability was 34.0% 30.0 (21.8%). • Also reported ROE remained 25.0 above the target level of 20% and Target >20% was 21.2% (21.8%). 20.0 • ESL Shipping’s and Telko’s strong profitability continued in th
Slide 8: Positive development in key sustainability targets
Positive development in key sustainability targets • Sustainability is a key factor of Aspo’s management system. Carbon intensity, last 12m • Key target is to reduce carbon intensity, CO2e (tn) per net sales (EUR thousand), by 30% by 2025. Starting level (2020) was 0.44 and 0.39 (0.42 in 2021) targe
Slide 9: Aspo business reviews
Aspo business reviews Forerunner and Accelerated growth Towards full potential industrial partner Aspo Q1 2022 May 4, 2022 9
Slide 10: Strong demand and profitability continued
Strong demand and profitability continued Aspo Q1 2022 May 4, 2022 10
Slide 11: Over 30% net sales growth driven by strong demand
Over 30% net sales growth driven by strong demand, operational efficiency and rising fuel prices MEUR Net sales Growth % • ESL Shipping’s net sales increased by 31% from the comparative 60 60% period to EUR 56.8 (43.4) million. 55 • In contract traffic, demand for transportation remained strong 45%
Slide 12: Baltic Dry indices developed positively at the beginning of the year
The Baltic Dry indeces have developed positively at the beginning of the year Baltic handysize index Baltic dry index Baltic supramax index Source: Baltic dry Index, banchero costa network April 29, 2022. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by se
Slide 13: Operating profit rate nearly at the 14% target level
Operating profit rate nearly at the 14% target level MEUR Operating profit Operating profit % 10 20% • ESL Shipping’s comparable operating profit increased considerably to EUR 7.9 (4.5) million. 9 18% Comparable operating profit rate increased to 13.9%, nearly achieving the target level of 14%. 8 16
Slide 14: Strong growth and record results
Strong growth and record results Aspo Q1 2022 May 4, 2022 14
Slide 15: Net sales growth of over 30% supported by market price development
Net sales growth of over 30% supported by market price development MEUR Net sales Growth % • Telko’s net sales grew strongly to EUR 75.9 (58.0) million in 80 40% Q1. Net sales were significantly impacted by price increases after the outbreak of war in Ukraine. Demand remained stable in all Telko’s o
Slide 16: Comparable operating profit at record-high EUR 8.6 million
Comparable operating profit at record-high EUR 8.6 million and 11.3 % MEUR Operating profit Operating profit % 9 12% • Telko’s comparable operating profit for Q1 was EUR 8.6 (4.6) million and operating profit rate was 8 11.3% (7.9%), well above the target level of 8%. 10% 7 • Telko’s margins were at
Slide 17: Profitability continued improving
Profitability continued improving Aspo Q1 2022 May 4, 2022 17
Slide 18: Leipurin saw strong growth in Finland and the Baltic countries
Leipurin saw strong growth in Finland and the Baltic countries MEUR Net sales Growth % 40 20% • Leipurin’s net sales were down 1% in Q1 and stood at EUR 27.7 million (28.0). This was significantly affected 35 15% by the comparative period’s machine sales in Russia, which is since deemed as a non-cor
Slide 19: Leipurin's comparable operating profit rate continued to improve
Leipurin’s comparable operating profit rate continued to improve • Leipurin’s Q1 comparable operating profit was MEUR Operating profit Operating profit % EUR 0.7 million (0.3) and operating profit rate 1.2 6% 2.5% (1.1). Target 5 % • Profitability was positively affected by net sales 1 5% growth, ri
Slide 20: Aspo's financial position and guidance
Aspo’s financial position and guidance Aspo Q1 2022 May 4, 2022 20
Slide 21: Gearing kept improving
Gearing kept improving Equity ratio % Gearing % 40 200 • Gearing fell under Aspo’s long- 35 180 term target level of 130% at the end of 2021. Improvement Gearing target <130 % continued in the first quarter and 30 160 gearing stood at 118.8%. • Net interest-bearing debt including 25 140 lease liabil
Slide 22: Strong liquidity and a balanced maturity structure
Strong liquidity and a balanced maturity structure Interest-bearing liabilities Maturity profile (MEUR) incl. lease liabilities 100 Net 21 1 90 interest- 20 80 bearing 70 debt total 15 EUR 159.5 60 * 142 50 Avg interest 40 rate1.3% 30 20 Term loans Bonds 10 Commercial papers Pension loans 0 Lease li
Slide 23: Update on the Eastern market operations
Update on the Eastern market operations • The operating environment has changed dramatically in eastern markets, and Russia’s reprehensible invasion will have an enduring impact on business opportunities in the region. • Aspo has decided to withdraw Leipurin’s operations from Russia, Belarus and Kaz
Slide 24: Guidance for 2022
Guidance for 2022 (given on April 5, 2022) Aspo Group's comparable operating profit will be EUR 27–34 (EUR 42.4) million in 2022. Aspo Q1 2022 May 4, 2022 24
Slide 25: Excellent start for the year 2022
Excellent start for the year 2022 • All long-term financial targets were achieved in the first quarter. • War in Ukraine affects especially Telko’s and Leipurin’s net sales and profit development, and considerably increases uncertainty in Aspo’s operating environment. • Commercial activity in Ukrain
Slide 26: Q&A
Q&A +358 9 817 10310 (47915707#) Aspo Q1 2022 May 4, 2022 26
Slide 27: Upcoming events
Upcoming events Half-year financial report August 10, 2022 www.aspo.com Twitter: @AspoPlc Aspo Q1 2022 May 4, 2022 27
Slide 28: Appendix
Appendix Aspo Q1 2022 May 4, 2022 28
Slide 29: Key figures
Key figures 1-3/2022 1-3/2021 1-12/2021 Net sales from continuing operations, MEUR 160.4 129.4 573.3 ESL Shipping, operating profit, MEUR 9.2 4.5 26.8 Telko, operating profit, MEUR 4.0 4.6 20.4 Leipurin, operating profit, MEUR -0.4 0.3 -2.4 Other operations, operating profit, MEUR -2.5 -1.6 -7.9 Ope
Slide 30: Shareholders
Shareholders Biggest shareholders March 31, 2022 % of shares Havsudden Oy Ab 10.38 AEV Capital Holding Oy 10.23 Varma Mutual Pension Insurance Company 4.53 Personnel fund Non-domestic and nominee Vehmas Tapio 4.06 registrations 1% Nyberg Gustav 2.87 4% Ilmarinen Mutual Pension Insurance Company 2.79