Slide 1: Aspo Q1
Aspo Q1 May 9, 2017 CEO Aki Ojanen CFO Arto Meitsalo
Slide 2: Strong growth Q1
Strong growth Q1 Net sales increased Operating profit stood at Profit for the period was significantly to EUR 119.0 EUR 4.4 (3.3) million. EUR 3.9 (2.3) million. (98.5) million. Earnings per share almost Net cash from operating Guidance remains doubled to EUR 0.13 (0.07). activities improved from un
Slide 3: Operating profit increased by 33%
Operating profit increased by 33% Operating profit MEUR Operating profit was EUR 24 4.4 (3.3) million. 20.6 20.4 Operating profit increased 20 Q1 due to ESL Shipping and 16 decrease in Group costs. 14.4 14.1 Q1-Q2 12 Q1-Q3 Q1 is usually the lowest of 8.1 8 7.1 Q1-Q4 the year. 4.4 4 3.0 3.3 0 2015 20
Slide 4: Long-term financial targets
Long-term financial targets Operating profit, % % Operating profit rate 8 increased to 3.7% (3.4). 7 Q1 6 Q1-Q2 5 4.4 4.6 4.5 4.2 3.8 Q1-Q3 4 3.7 3.3 3.4 2.9 Q1-Q4 The target level is 7% with 3 the current structure by 2 2020. 1 0 2015 2016 2017 Q1 May 9, 2017 4 The target level is indicated by the
Slide 5: Long-term financial targets
Long-term financial targets Return on equity, (ROE) % ROE improved significantly 28 26.2 from the comparative period 24 and was 13.4% (8.9). 20.8 Q1 20.1 19.1 20 Q1-Q2 16 14.6 13.4 13.4 Q1-Q3 12 11.0 In Q1 2015 a sales gain from 8.9 Q1-Q4 the sale of shares increased 8 ROE. 4 The target level is on
Slide 6: Long-term financial targets
Long-term financial targets Gearing % Gearing decreased to the 140 target level, 94% (109). 119 115 120 109 100 105 101 104 Q1 100 94 90 Q1-Q2 80 Q1-Q3 60 The target level is up to Q1-Q4 100% by 2020. 40 20 0 2015 2016 2017 Q1 May 9, 2017 6 The target level is indicated by the dashed line.
Slide 7: Net sales
Net sales Net sales by quarter MEUR Net sales increased by 21%. 140 122 125 116 118 119 120 110 112 All businesses increased 102 Q1 100 99 their net sales. Q2 80 Q3 60 Q4 Almost all market areas 40 increased their net sales. Strongest growth in eastern 20 markets. 0 2015 2016 2017 Q1 May 9, 2017 7
Slide 8: Net sales by segment
Net sales by segment MEUR 70 Distribution of net sales, Q1/2017 60 ESL Shipping 16% 50 Leipurin 25% 40 Telko 53% 30 Kauko 6% 20 10 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 ESL Shipping 16.2 16.7 17.9 20.6 18.9 Leipurin 26.2 28.8 27.0 30.7 29.4 Telko 49.4 62.2 63.8 64.9 63.6 Kauko 6.7 8.5 9.5 8.3 7.1 Q1 May 9
Slide 9: Net sales by market area
Net sales by market area MEUR 45 Distribution of net sales, Q1/2017 40 35 Finland 34% 30 Scandinavia 11% 25 Baltic countries 11% 20 Russia, Ukraine and 33% 15 other CIS countries 10 Other countries 11% 5 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Finland 34.1 37.7 38.9 38.7 40.2 Scandinavia 10.8 12.6 12.0 12.1
Slide 10: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR Net sales in eastern 45 42.0 markets increased by 48% 38.1 38.9 39.3 from the comparative 40 35.0 34.7 Q1 period. The increase is 35 32.2 Q2 partly caused by the 30 26.4 26.6 strengthening of the ruble. 25 Q3 20 Q4 Net sales growth in eastern 15
Slide 11: ESL Shipping
ESL Shipping Leading marine logistics provider for bulk cargo Q1 May 9, 2017 11
Slide 12: ESL Shipping
ESL Shipping Q1 International freight rates increased in Q1. Net sales increased by 17% to EUR 18.9 (16.2) million. Profitability is based on special expertise Net sales grew especially as a result of and unique services. Supramax vessels and increase in ship fuel prices. Operating profit increased
Slide 13: ESL Shipping, key figures
ESL Shipping, key figures Net sales MEUR Net sales increased 25 exceptionally strongly. 19.9 19.9 20.6 Transportation volumes 20 18.9 18.2 18.2 17.9 Q1 increased from the 16.2 16.7 comparative period. Q2 15 Q3 10 Q4 More effective use of the capasity and growth in ship 5 fuel prices increased net sa
Slide 14: ESL Shipping, key figures
ESL Shipping, key figures Operating profit MEUR Q1 operating profit EUR 3.0 5 (2.2) million was good for 4.5 4.4 4.5 the winter period. 4.1 4 Q1 3.5 3.3 3.4 3.0 Q2 3 2.9 2.5 Q3 2.5 2.2 2 Q4 Supramax vessels started to produce profits. 1.5 1 Difficult weather conditions 0.5 affected to the loading an
Slide 15: Baltic Dry Index 2013‒2017
Baltic Dry Index 2013‒2017 Source: Bloomberg Q1 May 9, 2017 15
Slide 16: Leipurin
Leipurin From breads and recipes to a comprehensive selection Q1 May 9, 2017 16
Slide 17: Leipurin
Leipurin Q1 The prices of key raw materials increased Net sales increased by 12% and amounted from the comparative period. to EUR 29.4 (26.2) million. The market of industrial packed bread decreased. The market of in-store bakeries Net sales increased especially in eastern and baking units continued
Slide 18: Leipurin, key figures
Leipurin, key figures Net sales MEUR Net sales increased. 35 31.5 Net sales of machine 30.7 29.7 28.8 29.4 operations increased by 30 28.3 28.3 27.0 26.2 Q1 45% and raw materials in 25 Q2 eastern markets by 33%. 20 Q3 15 Significant investments to Q4 the increase of the market 10 share in the OOH ma
Slide 19: Leipurin, key figures
Leipurin, key figures Operating profit MEUR Operating profit amounted 0.9 0.8 to EUR 0.4 million (0.5) 0.8 which is clearly behind the 0.7 0.7 0.7 Q1 target level. 0.6 Q2 0.5 0.5 0.5 0.4 0.4 0.4 0.4 Q3 0.4 Profitability is expected to Q4 0.3 increase in 2017. 0.2 0.1 0 2015 2016 2017 Q1 May 9, 2017
Slide 20: 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 12.0 700 9.6 600 573 10.0 9.1 534 8.3 Q1 493 Q1 8.0 500 456 8.0 7.7 403 435 448 7.1 7.2 Q2 404 404 Q2 6.3 400 6.1 6.0 Q3 Q3 300 Q4 Q4 4.0 200 2.0 100 0.0 0 2015 2016 2017 2015
Slide 21: Telko
Telko Raw material solutions for the industry Q1 May 9, 2017 21
Slide 22: Telko
Telko Q1 Net sales increased significantly. Net sales increased by 29% and amounted to EUR 63.6 (49.4) million. The growth was affected by an increase in volumes as well as prices of chemicals Net sales increased in eastern and western and plastic raw materials. markets. Operating profit stood at th
Slide 23: Telko, key figures
Telko, key figures Net sales MEUR Q1 net sales increased 70.0 62.2 63.8 64.9 63.6 significantly. 60.0 55.2 56.5 53.6 Q1 net sales is usually the 50.0 Q1 lowest of the year. 49.4 50.0 Q2 40.0 Q3 30.0 Q4 Net sales increased in all market areas. 20.0 10.0 0.0 2015 2016 2017 Q1 May 9, 2017 23
Slide 24: Telko, key figures
Telko, key figures Operating profit MEUR Operating profit amounted 3.5 3.2 to EUR 2.3 (2.3) million. 3.0 3.0 3.0 Q1 2.5 2.5 2.3 2.3 2.3 2.3 Q2 2.0 1.9 Q3 1.5 Q4 Investments in growth and costs related to 1.0 strengthened Russian ruble 0.5 reduced the profitability in eastern markets. 0.0 2015 2016 2
Slide 25: 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 31.4 31.5 30.0 28.6 28.7 1200 1155 27.0 24.2 25.0 Q1 1005 25.0 1000 946 Q1 870 864 888 19.4 Q2 Q2 20.0 19.3 800 Q3 691706 680 Q3 15.0 600 Q4 Q4 10.0 400 5.0 200 0.0
Slide 26: Kauko
Kauko Best tools for mobile knowledge work Q1 May 9, 2017 26
Slide 27: Kauko
Kauko Q1 Net sales increased to EUR 7.1 (6.7) Operating profit amounted to EUR -0.5 million. (-0.3) million. Operating profit includes a EUR 0.3 million impairment loss of receivables related to the divested Industrial business. First quarter result is usually the lowest of Application operations an
Slide 28: Kauko, key figures
Kauko, key figures Net sales Q1 net sales increased to MEUR EUR 7.1 (6.7) million. 18 17.1 16 Q1 14 12 Q2 10 9.5 Q3 8.5 8.3 Net sales of mobile 8 7.1 6.8 7.1 6.7 Q4 knowledge work and 6 5.5 energy-efficiency 4 equipment increased. 2 0 2015 2016 2017 Q1 May 9, 2017 28
Slide 29: Kauko, key figures
Kauko, key figures Operating profit Operating profit amounted MEUR to EUR -0.5 (-0.3) million 1.0 0.6 including a EUR 0.3 million 0.5 0.5 impairment loss of 0.1 0.1 0.0 0.0 Q1 receivable. -0.5 -0.3 -0.3 Q2 -0.5 -1.0 Q3 Mobile knowledge work is -1.5 Q4 expected to increase its profitability. Q1 is ty
Slide 30: Financials and financing
Financials and financing Arto Meitsalo Q1 May 9, 2017 30
Slide 31: Income statement
Income statement MEUR Q1/2017 Q1/2016 Net sales 119.0 98.5 Ebitda rate was 6.2% (6.2). Ebitda 7.4 6.1 Operating profit rate Depreciation, amortization and -3.0 -2.8 increased to 3.7% (3.4). impairment losses Operating profit 4.4 3.3 Earnings per share Financial income and expenses -0.2 -0.7 increase
Slide 32: Net cash from operating activities
Net cash from operating activities MEUR 30.0 Net cash from operating 25.0 activities improved from the 25.0 comparative period but was 20.0 Q1 negative EUR -3.2 (-7.0) 16.2 15.0 million. Change in working 10.7 Q1-Q2 10.0 capital was EUR -8.4 (-12.1) 5.0 Q1-Q3 million. 0.0 Q1-Q4 Net cash from operati
Slide 33: Equity ratio and gearing
Equity ratio and gearing % % 39 140 Capital structure developed 38 positively compared to Q1 120 37 2016. 100 36 35 80 34 60 33 40 Gearing was 94% and 32 20 equity ratio 38%. 31 30 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Equity ratio, % Gearing, % Q1 May 9, 2017 33
Slide 34: Structure of liabilities
Structure of liabilities Interest bearing liabilities on Interest bearing liabilities on March 31, 2016, EUR 124 million March 31, 2017, EUR 129 million 6% 5% 9% 8% Loans Loans 6% 8% Commercial papers Commercial papers 4% TyEL pension loan TyEL pension loan Bond Bond Others Others 77% 77% Q1 May 9,
Slide 35: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 Q1 the average interest rate of interest bearing liabilities 60.0 1.4 was 1.7% (12/2016: 1.8). 50.0 25.0 TyEL pension loan 40.0 1.4 Bond Hybrid bond (call) 30.0 20.0 1.4 Revolving credit facilities A revolving credit facility of 1.4 Loans 20.0 1.4 1.
Slide 36: Personnel, March 31: 907
Personnel, March 31: 907 Personnel by segment Personnel by geographical area 350 500 323 450 427 300 284 400 250 339 350 232 300 200 250 150 200 100 150 100 72 50 43 25 50 49 20 0 0 2013 2014 2015 2016 31.3.2017 2013 2014 2015 2016 31.3.2017 ESL Shipping Leipurin Telko Finland Scandinavia Kauko Othe
Slide 37: General market outlook for 2017
General market outlook for 2017 • General uncertainty in the markets has decreased. The market situation has • Industrial production is expected to increase in the main improved significantly. market areas of Aspo. • Raw material prices will remain low. Uncertainties are difficult to • Political ris
Slide 38: Guidance remains unchanged:
Guidance remains unchanged: Aspo’s operating profit will be EUR 22-27 (20,4) million in 2017. Q1 May 9, 2017 39