Aspo Plc · OMXHEX:ASPO
Aspo — Shareholder Meeting (April 2017)
48 slides from Aspo's shareholder meeting presentation, Apr 5, 2017
Slide 1: Annual Shareholders' Meeting April 5, 2017
Annual Shareholders' Meeting April 5, 2017 Aki Ojanen, CEO
Slide 2: An active developer of businesses
An active developer of businesses VISION STRATEGY Aspo develops small and medium-sized companies, Aspo’s vision is to increase the Aspo’s strategy is to own, whose aim is to be the market value and competence of the lead and develop its leader in their specific company over the long term, business o
Slide 3: The personnel of Aspo Plc
The personnel of Aspo Plc Hilkka Jokiniemi Toni Santalahti Executive Assistant, Aspo Plc, 2000– Director, Legal Affairs, Aspo Plc, 2008– Responsibilities: Group communications Responsibilities: Group legal affairs and corporate governance Arto Meitsalo Harri Seppälä CFO, Aspo Plc, 2009– Group Treasu
Slide 4: Strengths of a conglomerate
Strengths of a conglomerate Predictable result Cash flows are divided Business operations are development and between 16 countries and independent of each other diversified risks. several currency areas. and serve different customer clusters. A significant part of Synergy benefits from operations ar
Slide 5: Aspo represents a balanced entity
Aspo represents a balanced entity Net sales by segment (2016) Net sales by market area (2016) Finland 149.4 MEUR 10% 7% 16% 11% Russia, Ukraine and other ESL Shipping 71.4 MEUR 33% CIS countries 145.6 MEUR Leipurin 112.7 MEUR Other countries 64.5 MEUR Telko 240.3 MEUR 14% 25% Baltic countries 50.4 K
Slide 6: We operate in North Europe and rapidly growing markets
We operate in North Europe and rapidly growing markets • Offices in the major cities of the customs union area of Russia, Belarus and Kazakhstan. • We are responsible for the whole value chain (import- customs-sales- product development). • The northern sea area of Russia is a significant market are
Slide 7: Business operations in Russia, Ukraine and other CIS countries
Business operations in Russia, Ukraine and other CIS countries • Success is based on know-how, making the right choices, as well as on a regional strategy. In Russia, ruble- denominated net sales • No significant tangible investments. increased in 2016 • Fast circulating working capital (product inv
Slide 8: Aspo's growth in Russia
Aspo’s growth in Russia Net sales of Aspo’s Russian companies MRUB 6,000 Annual net sales growth in Russia, on average 5,000 2012–2016 4,000 12% 3,000 2,000 1,000 0 2012 2013 2014 2015 2016 Net sales, MRUB Annual Shareholders' Meeting April 5, 2017 8
Slide 9: Russian companies' development of net sales
Russian companies’ development of net sales 2008–2016 Indexed development of net sales 2008–2015 350 ASPO 300 Aspo has had strong 250 organic growth between 200 2008–2016. 150 100 50 The risk level of organic growth is lower than 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 through acquisitions an
Slide 10: The efficient leadership system of a conglomerate
The efficient leadership system of a conglomerate Aspo’s Board of Directors evaluates new The efficient administration of Aspo Plc business opportunities, decides on is responsible for the processes of significant investments, as well as sets finances, financing and development of long-term financia
Slide 11: ESL Shipping
ESL Shipping ESL Shipping Johtava merilogistiikan tuottaja irtolasteille A pioneer in specific transportation, reliability and eco-friendliness Annual Shareholders' Meeting April 5, 2017 11
Slide 12: ESL Shipping management
ESL Shipping management BOARD OF DIRECTORS Aki Ojanen Kimmo Nordström Chairman of the Board since 2009 Member of the Board since 2016 Chairman of the Board, Containerships Ltd Oy Mikko Niini M.Sc. (Tech.), the Finnish honorary Ulla Tapaninen title of merenkulkuneuvos (maritime Ph.D., docent counsell
Slide 13: ESL Shipping year 2016
ESL Shipping year 2016 71.4 MEUR 12.6 MEUR 226 (76.2 MEUR) (14.7 MEUR) (223) Net sales Operating profit Personnel Annual Shareholders' Meeting April 5, 2017 13
Slide 14: ESL Shipping year 2016
ESL Shipping year 2016 KEY EVENTS OPPORTUNITIES • A substantial investment in the world’s first • Unique vessels, long-term customerships, and environmentally friendly Handysize dry cargo tightening environmental standards strengthen vessels powered by LNG. the competitiveness of ESL Shipping and •
Slide 15: A pioneer in energy and environmental-efficiency
A pioneer in energy and environmental-efficiency Ships are the most ecological mode of cargo transportation. A sulphur directive is in effect in the Baltic Sea. The CO2 emissions of the new LNG-vessels are more than 50% lower when compared to current vessels. Annual Shareholders' Meeting April 5, 20
Slide 16: We are an integral part of our customers' logistics chain
We are an integral part of our customers’ logistics chain Annual Shareholders' Meeting April 5, 2017 16
Slide 17: Annual Shareholders' Meeting April 5, 2017
Annual Shareholders' Meeting April 5, 2017 17
Slide 18: Transition to biofuels promotes business
Transition to biofuels promotes business Energy-efficiency vs. transportation volumes The transition to biofuels will significantly increase the need for transportation. Wood chip 0.8 MWh / m3 Coal 5.6 MWh / m3 Source: Lloyds/BDI Annual Shareholders' Meeting April 5, 2017 18
Slide 19: Leipurin
Leipurin Think Deliciously Annual Shareholders' Meeting April 5, 2017 19
Slide 20: Leipurin management
Leipurin management BOARD OF DIRECTORS Aki Ojanen Esa Rautalinko Chairman of the Board since 2009 M.Sc. (Econ.) Member of the Board since January 1, 2017 Jukka Havia Chairman of the Board, Cinia Group Ltd. M.Sc. (Econ.) Member of the Board since 2014 Harri Sivula Chief Financial Officer, Tikkurila O
Slide 21: Leipurin year 2016
Leipurin year 2016 112.7 MEUR 2.0 MEUR 322 (117.8 MEUR) (2.4 MEUR) (299) Net sales Operating profit Personnel Annual Shareholders' Meeting April 5, 2017 21
Slide 22: Leipurin year 2016
Leipurin year 2016 KEY EVENTS OPPORTUNITIES • Mikko Laavainen was chosen as the new • Utilizing knowledge of industrial baking and Managing Director 3/2016. large volumes for new customers. • Renewing the Executive Committee according • Utilizing the snack and out-of-home (OOH) trends. to the new st
Slide 23: Leipurin net sales distribution 2016
Leipurin net sales distribution 2016 Net sales distribution by country Net sales distribution by business 12% 3% 7% Finland 46.4 MEUR Baltic countries 27.6 MEUR 24% 42% Raw materials 99.7 MEUR Russia 27.3 MEUR Other CIS countries 3.3 MEUR Machinery 13.0 MEUR Other countries 8.1 MEUR 24% 88% Annual S
Slide 24: Targets and measures to develop operations
Targets and measures to develop operations Organic growth Improving profitability Business development Growth in Russia and in the Expanding the product Improving leadership and skills. CIS coutries; utilizing the offering and customer base. growth of the industrial baking Developing the product off
Slide 25: Kauko
Kauko An expert in mobile knowledge work Annual Shareholders' Meeting April 5, 2017 25
Slide 26: Kauko management
Kauko management BOARD OF DIRECTORS Aki Ojanen Hanna-Mari Parkkinen Chairman of the Board since 2009 MBA Member of the Board since 2015 Pirja Heiskanen Group Business Design Director, M.Sc. (Tech.), Ph.D. Fjord Design and Innovation from Accenture Interactive Member of the Board since 2012 Vice Pres
Slide 27: Kauko year 2016
Kauko year 2016 33.0 MEUR -0.1 MEUR 42 (36.5 MEUR) (-1.2 MEUR) (46) Net sales Operating profit Personnel Annual Shareholders' Meeting April 5, 2017 27
Slide 28: Annual Shareholders' Meeting April 5, 2017
Annual Shareholders' Meeting April 5, 2017 28
Slide 29: Kauko year 2016
Kauko year 2016 KEY EVENTS OPPORTUNITIES • Kauko focuses on mobile IT in demanding • Digitalization quickly increases the working environments. possibilities of mobile knowledge work. • The company renewed its brand and from 17 • Special-use reinforced computers and tablets May, 2016 onwards is call
Slide 30: Telko
Telko A multi-talent in materials Annual Shareholders' Meeting April 5, 2017 30
Slide 31: Telko management
Telko management BOARD OF DIRECTORS Aki Ojanen Elina Piispanen Chairman of the Board since 2009 M.Sc. (Econ.) Member of the Board since 2017 Anders Dahlblom Chief Transformation Officer, Sanoma Media Finland M.Sc. (Econ.) Member of the Board since 2017 Irmeli Rytkönen CFO, Paroc Group Oy LL.M. Manag
Slide 32: Telko year 2016
Telko year 2016 240.3 MEUR 10.1 MEUR 280 (215.3 MEUR) (10.4 MEUR) (265) Net sales Operating profit Personnel Annual Shareholders' Meeting April 5, 2017 32
Slide 33: Telko year 2016
Telko year 2016 KEY EVENTS OPPORTUNITIES • Growth in net sales accelerated towards the end • Russia’s economic crisis has improved the of the year (Q4: 21%). The company achieved competitiveness of Russian industry. the highest net sales in its history. • Utilizing the strong market position as the
Slide 34: Telko net sales distribution 2016
Telko net sales distribution 2016 Net sales distribution by country Net sales distribution by business Finland 50.5 MEUR 10% 21% Scandinavia 36 MEUR 7% 27% Technical plastics 64.9 MEUR Baltic countries 19.2 MEUR 60% Volume plastics 76.9 MEUR 25% 34% Other chemicals 81.7 MEUR 15% Russia 50.5 MEUR 40%
Slide 35: Long-term co-operation
Long-term co-operation GLOBAL BROAD SUPPLIERS CUSTOMER BASE PLASTICS • Technical know- how Plastics: • Knowledge in sales The packaging, electricity, electronics and car industries • Purchasing and procurement Companies manufacturing • Logistics consumer goods • Financing CHEMICALS Chemicals: • Stor
Slide 36: Financial statements, balance sheet and annual report, as well as dividend proposal
Päivitetään!! Financial statements, balance sheet and annual report, as well as dividend proposal Annual Shareholders' Meeting April 5, 2017 36
Slide 37: Net sales and operating profit-% 2012–2016
Net sales and operating profit-% 2012–2016 MEUR % 600 6 Aspo’s profitability is based 500 5 on a strong strategy, successful investments 400 4 and long-term business development. 300 3 200 2 100 1 0 0 2012 2013 2014 2015 ESL Shipping Leipurin Telko Kauko Operating profit-% Annual Shareholders' Meeti
Slide 38: We are committed to our long-term financial targets
We are committed to our long-term financial targets Operating profit, % Return on equity, % Gearing, % 8 30 140 131.6 7 120 25 6 98.2 101.0 101.4 19.1 100 89.8 4.8 20 17.8 5 4.6 4.5 80 14.6 4 15 11.8 60 3 2.2 2.3 10 8.9 40 2 5 20 1 0 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 20
Slide 39: Aspo's net sales increased and operating profit remained at a good level
Aspo’s net sales increased and operating profit remained at a good level Net sales Operating profit Earnings per share 457.4 MEUR 20.4 MEUR 0.49 EUR (445.8 MEUR) (20.6 MEUR) (0.61 EUR) Net cash from Return on equity Personnel operating activities 14.6% 895 16.2 MEUR (19.1%) (857) (25.0 MEUR) Annual
Slide 40: Shareholders / allocation
Shareholders / allocation Number of shareholders Distribution of ownership December 31, 2016 by ownership group, shares % 10,000 9,236 9,000 8,929 2% 8,150 Institutions 8,000 7,389 7,000 6,497 24% Group Executive Committee 6,000 Board 5,000 4,000 1% Private investors 3,000 Non-domestic / nominee 59%
Slide 41: Aspo market value
Aspo market value Share price development (closing price) Dividend-adjusted market value of shares € MEUR 10.00 350 8.86 9.00 300 8.18 8.00 7.50 250 7.00 200 6.39 6.03 6.00 5.69 150 5.00 100 4.00 50 3.00 0 2012 2013 2014 2015 2016 31.3.2017 2012 2013 2014 2015 2016 Market value 31 Dec, MEUR Cumulati
Slide 42: Dividend proposal year 2016
Dividend proposal year 2016 The Board of Directors’ Dividend will be paid Dividend distribution dividend proposal to in two installments: policy: the Shareholders’ EUR 0.21 / share in At least half of the Meeting: April annual profit EUR 0.42 / share EUR 0.21 / share in distributed in November divid
Slide 43: Dividend / earnings and cash flow
Dividend / earnings and cash flow € 0.90 0.80 0.82 0.73 0.70 0.60 0.61 0.57 0.53 0.53 0.50 0.49 0.40 0.36 0.30 0.29 0.28 0.20 0.42 0.40 0.41 0.42 0.10 0.21 0.00 2012 2013 2014 2015 2016* Dividend/share Earning/share Cash flows from operating activities/share * Dividend proposal of the Board Annual S
Slide 44: Dividend and dividend yield 2012–2016
Dividend and dividend yield 2012–2016 € % 0.45 8 0.40 7 Dividend yield of Aspo, 0.35 6 average 0.30 2012‒2016 5 0.25 5.5% 4 0.20 3 0.15 2 0.10 Dividend yield of Helsinki 0.05 1 Stock Exchange, average 0.00 0 2012‒2016 2012 2013 2014 2015 2016* 3.6% Dividend, EUR Aspo, Dividend yield Helsinki, Divide
Slide 45: Outlook for year 2017
Outlook for year 2017 Uncertainty in markets has Russian economy is The external values of the decreased. expected to turn to growth. currencies important to Aspo are expected to continue to fluctuate strongly. International freight rates Improved profitability of Group’s administrative have begun t
Slide 46: We aim to reach our financial targets by 2020
We aim to reach our financial targets by 2020 Operating profit with the Average return on equity of Gearing of up to: current structure: over: 7% 20% 100% (2016: Operating profit 4.5%) (2016: ROE 14.6%) (2016: Gearing 89.8%) Annual Shareholders' Meeting April 5, 2017 46
Slide 47: Guidance 2017
Guidance 2017 Aspo’s operating profit will be EUR 22–27 million (20.4) in 2017. Annual Shareholders' Meeting April 5, 2017 47
Slide 48: Thank you.
Thank you.