Slide 1: Aspo Year 2011 and Q4
Aspo Year 2011 and Q4 February 14, 2012 CEO Aki Ojanen CFO Arto Meitsalo CTO Harri Seppälä
Slide 2: Aspo's strategy
Aspo’s strategy • Aspo is a conglomerate that owns and continually develops its business operations and structure without predefined schedules. • Business operations focusing on B-to-B customers. • Business operations in northern Europe and growth markets. • Company brands: ESL Shipping, Leipurin, T
Slide 3: Main events and result in 2011
Main events and result in 2011 • Strong growth particularly in the growth markets recognized by Aspo – Russia, Ukraine, Poland, China, Kazakhstan and Belarus • The Group’s net sales and operating profit grew by 20%. • Operational cash flow improved significantly. • Earnings per share increased to EU
Slide 4: Net sales and operating profit 2007–2011
Net sales and operating profit 2007–2011 MEUR Liikevaihto Liikevoitto MEUR 500 476.3 50 395.9 400 40 358.2 329.4 300 30 208.9 200 20 100 10 0 0 * Continuing operations 4
Slide 5: Net sales / segment 2010–2011
Net sales / segment 2010–2011 MEUR Change, % 600 +20% 476.3 500 395.9 +34% 400 +21% 300 200 +18% 100 +17% 0 2010 2011 ESL Shipping Leipurin Telko Kaukomarkkinat 5
Slide 6: Net sales / segment
Net sales / segment MEUR 2011 2010 Change, % ESL Shipping 10.5 11.5 -9 Leipurin 5.7 3.6 58 Telko 8.6 6.8 26 Kaukomarkkinat 1.4 0.6 133 Other operations -4.7 -4.6 -2 Total 21.5 17.9 20 6
Slide 7: Net sales / market areas
Net sales / market areas MEUR 2011 2010 Change, % Finland 181.2 167.1 8 Nordic countries 48.8 51.9 -6 Baltic countries 50.6 43.8 16 Russia, Ukraine, other CIS 122.6 88.5 39 Other countries 73.1 44.6 64 Total 476.3 395.9 20 7
Slide 8: Net sales 2007–2011 Russia, Ukraine + other CIS countries
Net sales 2007–2011 Russia, Ukraine + other CIS countries Including ESL Shipping’s transports from Russia MEUR 180 157.9 160 140 120 112.0 100 90.6 87.9 80 68.1 60 40 20 0 2007 2008 2009 2010 2011 8
Slide 9: Main events in Q4 2011
Main events in Q4 2011 • The increase in net sales continued to accelerate in Russia, CIS and Ukraine, by 58%, amounting to EUR 40 million. • Demand did not grow in the western markets. • Operating profit stood at EUR 5.0 million. Exceptional items over the review period included the docking of m/s
Slide 10: Group net sales, quarterly 2009–2011
Group net sales, quarterly 2009–2011 MEUR 140 121.3 120 109.1 100 90.1 80 60 40 20 0 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 10
Slide 11: Group operating profit, quarterly 2009–2011
Group operating profit, quarterly 2009–2011 MEUR 9 8 7 6 5.5 5.0 5 4.0 4 3 2 1 0 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 11
Slide 12: Aspo business operations
Aspo business operations
Slide 13: Integral part of Finnish security of supply
Integral part of Finnish security of supply
Slide 14: ESL Shipping net sales and operating profit 2007–2011
ESL Shipping net sales and operating profit 2007–2011 MEUR Net sales Operating profit MEUR 100 50 93.1 85.1 84.1 79.5 80 40 63.8 60 30 40 20 20 10 0 0 Not including the sales gains of m/s Arkadia and m/s Kontula 15
Slide 15: ESL Shipping key figures Q4
ESL Shipping key figures Q4 Q4/11 Q4/10 Change, % Net sales, MEUR 22.1 19.9 11 Operating profit, MEUR 2.7 3.0 -10 Personnel 211 183 15 16
Slide 16: ESL Shipping Q4 2011
ESL Shipping Q4 2011 • Global prices of dry bulk cargoes have decreased to a poor level. • Transportation volumes in the Baltic Sea are at a satisfactory level. • Of all customers, the steel industry is running a reduced production capacity. The warm fall and early winter increased the level of coal
Slide 17: Expert in flavors and structure
Expert in flavors and structure
Slide 18: Leipurin net sales and operating profit 2008–2011
Leipurin net sales and operating profit 2008–2011 MEUR Net sales Operating profit MEUR 140 7 128.2 120 6 108.7 99.3 100 5 80 4 69.3 60 3 40 2 20 1 0 0 19
Slide 19: Leipurin key figures Q4
Leipurin key figures Q4 Q4/11 Q4/10 Change, % Net sales, MEUR 35.1 30.6 15 Operating profit, MEUR 1.8 1.4 29 Personnel 275 226 22 20
Slide 20: Leipurin Q4 2011
Leipurin Q4 2011 • The price of basic raw materials in the food industry has stabilized at a high level. • The acquisition of Vulganus on December 7, 2011, had a positive impact on machine sales in December. • Vulganus improves competitiveness within bakery machinery, particularly in the rapidly gro
Slide 21: Net sales in Russia, Ukraine and other CIS countries Q4 2006–2011
Net sales in Russia, Ukraine and other CIS countries Q4 2006–2011 MEUR 14 12 11.4 10 8 7.0 6.6 6 5.6 5.6 5.4 4 2 0 Q4/06 Q4/07 Q4/08 Q4/09 Q4/10 Q4/11 Leipurin has been part of Aspo Group as of 5/2008 22
Slide 22: Leading expert in chemicals and plastic raw materials
Leading expert in chemicals and plastic raw materials
Slide 23: Telko net sales and operating profit 2007–2011
Telko net sales and operating profit 2007–2011 MEUR Net sales Operating profit MEUR 250 10 211.6 200 8 172.7 175.2 150 6 123.8 128.8 100 4 50 2 0 0 24
Slide 24: Telko key figures Q4
Telko key figures Q4 Q4/11 Q4/10 Change, % Net sales, MEUR 52.3 47.9 9 Operating profit, MEUR 1.3 1.7 -24 Personnel 230 199 16 25
Slide 25: Telko Q4 2011
Telko Q4 2011 • The prices for sold raw materials decreased, but remained at a good level. • All growth was organic. • Operating profit was decreased by the writedown of EUR 0.3 million arising from the cancellation of the terminal project in St. Petersburg. The project will be continued with a new
Slide 26: Net sales in Russia, Ukraine and other CIS countries Q4 2006–2011
Net sales in Russia, Ukraine and other CIS countries Q4 2006–2011 MEUR 30 28.3 25 20 18.3 15 11.1 9.8 9.3 10 8.7 5 0 Q4/06 Q4/07 Q4/08 Q4/09 Q4/10 Q4/11 27
Slide 27: Expert in energy efficiency
KAUKO MARKKINAT Expert in energy efficiency
Slide 28: Kaukomarkkinat net sales and operating profit 2008–2011
Kaukomarkkinat net sales and operating profit 2008–2011 MEUR Net sales Operating profit MEUR 50 5 43.4 40 36.4 4 30.8 32.5 30 3 20 2 10 1 0 0 29
Slide 29: Kaukomarkkinat key figures Q4
Kaukomarkkinat key figures Q4 Q4/11 Q4/10 Change, % Net sales, MEUR 11.8 10.7 10 Operating profit, MEUR 0.1 0.8 -88 Personnel 85 91 -7 30
Slide 30: Kaukomarkkinat Q4 2011
Kaukomarkkinat Q4 2011 • Operating profit fell short from the reference period. Project sales play a significant part in the year’s result. A substantial number of projects were entered as income during Q3. • The full-year operating profit of Kaukomarkkinat increased, particularly thanks to improved
Slide 31: Financing
Financing Harri Seppälä
Slide 32: Equity ratio and gearing
Equity ratio and gearing % 200 180 160 140 124.7 123.7 120 115.8 101.5 100 92.1 94.4 93.1 94.1 87.9 80 60 40 34.6 36.2 33.7 34.2 35.2 33.2 31.7 30.2 30.0 20 0 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Equity ratio Gearing 33
Slide 33: Operational cash flow
Operational cash flow MEUR 10 9.7 8.9 8 7.1 6.3 6 5.0 4.4 4 2 0.2 0 -2 -2.9 -4 -4.3 -6 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 34
Slide 34: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 120 100 87.0 80 82.0 81.6 78.4 78.5 78.1 70.6 60 63.2 58.8 40 20 0 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Net debt Cash and cash equivalents 35
Slide 35: Maturity of major loan agreements
Maturity of mayor loan agreements MEUR 45 20.0 40 42.0 35 20.0 30 25 25.0 20 20.0 15 10.0 10 5 5.0 1.0 0 2012 2013 2014 2015 2016+ Loans Convertible capital loan Revolving credit facilities Commercial papers, overdraft facilities, and financial leasing agreements not included. 36
Slide 36: Liquidity Q4 2011
Liquidity Q4 2011 MEUR Total In use Revolving credit facilities 40.0 0.0 Commercial paper program 50.0 5.0 Cash and cash equivalents 14.5 Interest-bearing liabilities, with a 1 year maturity, amount to a total of EUR 8.8 million (incl. ia commercial papers, financial leasing agreements). Cash and ca
Slide 37: Financials
Financials Arto Meitsalo
Slide 38: Income statement and key figures
Income statement and key figures MEUR 2011 2010 Net sales 476.3 395.9 Depreciations -8.2 -8.1 Operating profit 21.5 17.9 Net financial expenses -4.0 -3.8 Profit before taxes 17.4 14.1 Profit for the period 13.3 10.4 2011 2010 Earnings/share, EUR 0.45 0.38 Equity ratio, % 35.2 33.2 Equity/share, EUR
Slide 39: Balance sheet
Balance sheet MEUR Assets Shareholders’ equity and 300 liabilities 300 268.9 268.9 250 250 72.2 68.4 212.8 212.8 200 200 53.8 64.8 43.1 150 150 108.0 44.9 78.5 100 100 153.6 114.1 50 92.5 50 69.5 0 0 2011 2010 2011 2010 Non-current assets Shareholders' equity Inventories Long-term liabilities Cash a
Slide 40: Investments excl. acquisitions
Investments excl. acquisitions MEUR 45 40 35 30 25 20 38.8 15 10 18.8 5 11.1 3.1 0 2008 2009 2010 2011 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 41
Slide 41: Financial targets: Return on investment, return on equity
Financial targets Return on investment, return on equity Group on the whole ROI, % ROE, % 45 45 40 40 35 35 30 30 25 25 25.7 25.4 24.1 20 20 18.5 15 14.9 15 16.4 15.2 10 12.7 12.5 14.1 11.1 13.0 10 5 5 0 2006 2007* 2008* 2009* 2010 2011 0 2006 2007* 2008* 2009* 2010 2011 Target * Including non-recur
Slide 42: Financial targets: Operating profit, %
Financial targets Operating profit, % 8 7 6 5 4 1.7 3 2 4.5 4.5 3.9 2.9 1 0 2008 2009 2010 2011 Excluding non-recurring sales gains and losses Non-recurring sales gains and losses Target 43
Slide 43: Personnel Q4/2011, Group total
Personnel Q4/2011, Group total 814 Share of Group personnel Distribution per country Other Kaukomarkkinat operations Other countries Russia, 10% 2% ESL Shipping 9% Finland Ukraine, 26% 55% other CIS 25% Telko Baltic 28% Leipurin countries Nordic countries 34% 9% 2% 44
Slide 44: Shareholders / allocation
Shareholders /allocation Share Q4/2011 Number of shareholders 7000 Personnel fund 6183 Non-domestic 0.2 % Institutions 6000 5760 & nominee 27.1 % 5036 5161 registrations 4860 2.4 % 5000 4000 3000 2000 1000 Manage- ment Private investors 2.0 % 0 60.7 % Board 7.6 % 45
Slide 45: Market value
Market value Share price, EUR Market value, EUR million (incl. own shares) Closing Average 10.00 250 222 8.26 211 8.00 200 177 170 6.80 6.80 6.44 156 5.90 6.00 150 106 4.03 4.00 100 2.00 50 0.00 0 Aspo started its rights issue on April 6, 2011. Share prices before this date are historical prices (no
Slide 46: Outlook for 2012
Outlook for 2012
Slide 47: Dividend proposal 2011
Dividend proposal 2011 • “On average, Aspo will pay approximately at least half of its earnings as dividends." • “The aim is to increase shareholder value.“ • Two components used as decision criteria – result – cash flow • The Board of Directors proposes a dividend of EUR 0.42 per share to the Annua
Slide 48: Financial targets: Dividend/earnings
Financial targets Dividend/earnings, adjusted for rights issue EUR 1.00 0.80 0.60 0.56 0.57 0.45 0.40 0.42 0.40 0.40 0.40 0.40 0.38 0.31 0.20 0.00 2007 2008 2009 2010 2011* Effective dividend yield 6.5 % 10.4 % 7.1 % 5.1 % 6.2 % Dividend Earnings per share * Board proposal 49
Slide 49: Expectations in Aspo Group in 2012
Expectations in Aspo Group in 2012 • Aspo has good preconditions to continue its organic growth. • The share of growth markets (i.e., Russia, CIS, Ukraine, China, the Baltic region and Poland) from the Group’s sales will continue to increase. • The Supramax vessels ordered by ESL Shipping will be in
Slide 50: Amendment to Tonnage Tax Act, status on February 14, 2012
Amendment to Tonnage Tax Act, status on February 14, 2012 • On January 26, 2012, the Ministry of Finance issued a release on amending the Tonnage Tax Act. • The Government proposes the Tonnage Tax Act to be amended retroactively from the beginning of 2011. • The proceedings are expected to last unti
Slide 51: Outlook for 2012
Outlook for 2012 – Aspo aims for growth in net sales and operating profit. 52
Slide 52: Thank you!
Thank you!