Slide 1: Aspo Q1
Aspo Q1 April 28, 2016 CEO Aki Ojanen Group Treasurer Harri Seppälä
Slide 2: Challenging environment, improved operating profit
Challenging environment, improved operating profit Operating profit improved Earnings per share were Cash flow from operating to EUR 3.3 million. EUR 0.07. activities was poor due to Items affecting Items affecting the seasonal cycle, being at comparability EUR -1.3 comparability EUR 0.16 the compar
Slide 3: Satisfactory operating profit
Satisfactory operating profit Operating profit MEUR Operating profit improved 28 from the comparative 23.4 period to EUR 3.3 million. 24 20.6 Q1 Comparable operating 20 17.9 profit decreased and was Q1-Q2 EUR 3.3 (4.3) million. 16 14.4 Q1-Q3 12 10.1 Poor profitability in Q1-Q4 Supramax vessels. 8 7.
Slide 4: Long-term financial targets: Operating profit %
Long-term financial targets Operating profit, % % The first quarter is usually 8 the weakest of the year, and 7 H1 is weaker than H2. Q1 6 5.0 4.8 Q1-Q2 5 4.4 4.4 4.6 Q1-Q3 4 3.5 3.4 3.3 The operating profit rate 2.9 Q1-Q4 3 increased from the 2 comparative period. 1 0 2014 2015 2016 Q1, April 28, 2
Slide 5: Long-term financial targets: Return on equity
Long-term financial targets Return on equity (ROE) % ROE was 9%. 28 26.2 24 20.8 Q1 18.8 20.1 19.1 20 17.8 Q1-Q2 15.6 16 Q1-Q3 12 The comparative period 9.5 8.9 Q1-Q4 included gain from the sale 8 of shares. 4 0 2014 2015 2016 Q1, April 28, 2016 5 The target level is indicated by the dashed line.
Slide 6: Long-term financial targets: Gearing
Long-term financial targets Gearing % Gearing was 109%. 140 124 119 120 112 111 109 101 100 105 101 Q1 100 Q1-Q2 80 Q1-Q3 60 Remained nearly at the Q1-Q4 target level. 40 The increase was mainly 20 caused by translation differences compared with 0 Q1 2015. 2014 2015 2016 Q1, April 28, 2016 6 The tar
Slide 7: Net sales
Net sales Net sales by quarter MEUR Net sales decreased by 140 130 EUR 3.5 million, or 3.4%. 123 123 122 120 110 112 108 102 Q1 99 100 Q2 80 Q3 60 Q4 Euro-denominated 40 decrease stopped in the eastern markets. 20 0 2014 2015 2016 Q1, April 28, 2016 7
Slide 8: Net sales by segment
Net sales by segment MEUR 60 Distribution of net sales, Q1/16 50 ESL Shipping 16% 40 Leipurin 27% Telko 50% 30 Kaukomarkkinat 7% 20 10 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 ESL Shipping 18.2 18.2 19.9 19.9 16.2 Leipurin 28.3 29.7 28.3 31.5 26.2 Telko 50.0 55.2 56.5 53.6 49.4 Kaukomarkkinat 5.5 7.1 6.8 17.
Slide 9: Net sales by market area
Net sales by market area MEUR 45 Distribution of net sales, Q1/16 40 35 Finland 35% 30 Scandinavia 11% 25 Baltic countries 12% 20 15 Russia, Ukraine and 27% 10 other CIS countries 5 Other countries 15% 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Finland 35.4 38.5 35.0 38.8 34.1 Scandinavia 11.7 12.9 15.6 11.6 1
Slide 10: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR Net sales were EUR 26.6 45 41.7 41.2 million, i.e. at the level of 40 39.0 the comparative period. 35.0 34.7 Q1 35 32.2 31.1 30 Q2 26.4 26.6 25 Q3 20 Q4 The Russian ruble fell by 15 approximately 14% and the 10 Ukrainian hryvnia by 23% based on
Slide 11: Aspo's businesses
Aspo's businesses Q1, April 28, 2016 11
Slide 12: ESL Shipping
ESL Shipping Leading marine logistics provider for bulk cargo Q1, April 28, 2016 12
Slide 13: ESL Shipping: Quarter in brief and outlook for 2016
ESL Shipping Quarter in brief and outlook for 2016 International freight rates were at a record Outlook for ESL Shipping for 2016 low in February. Freight rate levels have • Most of the transportation capacity has turned to an increase. been secured through long-term agreements. • Transportation vol
Slide 14: ESL Shipping, key figures: Net sales
ESL Shipping, key figures Net sales MEUR Net sales decreased 25 23.2 by 11%. 21.2 21.6 19.9 19.9 20 19.2 18.2 18.2 Q1 16.2 Q2 15 Q3 10 Q4 The decrease was caused by the market situation of 5 Supramax vessels and lower fuel prices. 0 2014 2015 2016 Q1, April 28, 2016 14
Slide 15: ESL Shipping, key figures: Operating profit
ESL Shipping, key figures Operating profit MEUR Operating profit decreased 6 by 33%. 5.2 5 4.8 4.4 4.5 Q1 4 Q2 3.3 3.3 Q3 3 2.7 2.5 Supramax vessels made a 2.2 Q4 2 loss. 1 0 2014 2015 2016 Q1, April 28, 2016 15
Slide 16: Baltic Dry Index 2011‒2015
Baltic Dry Index 2011‒2015 2,500 2,000 1,500 1,000 500 0 Q1 28.4.2016 Source: Lloyds/BDI 16
Slide 17: Leipurin
Leipurin From breads and recipes to a comprehensive selection Q1, April 28, 2016 17
Slide 18: Leipurin: Quarter in brief and outlook for 2016
Leipurin Quarter in brief and outlook for 2016 The prices of key raw materials have Outlook for Leipurin for 2016 mainly remained unchanged. • The market situation will continue to be challenging. Market of in-store bakeries and • Investments will be low in Russia. bake-off units continue to grow. D
Slide 19: Leipurin, key figures: Net sales
Leipurin, key figures Net sales MEUR Net sales decreased 40 36.1 by 7%. 34.5 35 34.1 31.5 30.1 29.7 Q1 30 28.3 28.3 26.2 Q2 25 20 Q3 New customers and 15 Q4 product launches 10 increased net sales in 5 Finland. Euro-denominated 0 net sales decreased in 2014 2015 2016 Russia. Q1, April 28, 2016 19
Slide 20: Leipurin, key figures: Operating profit
Leipurin, key figures Operating profit MEUR The operating profit and 2 1.9 operating profit rate 1.8 1.7 remained unchanged. 1.6 Q1 The profitability of raw 1.4 Q2 materials in Russia was 1.2 good at about 10%. 1 Q3 0.8 The low level of machinery 0.8 0.7 Q4 0.6 and equipment investments 0.5 0.5 0.5
Slide 21: 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 14.0 700 12.0 11.8 600 573 10.8 523 9.9 Q1 Q1 10.0 500 8.9 9.1 403 435 Q2 427 8.0 405 404 404 Q2 8.0 7.2 400 353 6.3 Q3 Q3 6.1 6.0 300 Q4 Q4 4.0 200 2.0 100 0.0 0 2014 2015 20
Slide 22: Telko
Telko Raw material solutions for the industry Q1, April 28, 2016 22
Slide 23: Telko: Quarter in brief and outlook for 2016
Telko Quarter in brief and outlook for 2016 The outlook of customer companies Outlook for Telko for 2016 continued to be poor in key markets. • The prices of chemicals are low, but those of plastics are showing signs of an increase. • The Castrol motor oils business will increase net sales and opera
Slide 24: Telko, key figures: Net sales
Telko, key figures Net sales MEUR Net sales remained close to 70 the level of the comparative 60.4 61.1 60 period. 55.8 55.2 56.5 53.6 50.0 Q1 49.6 49.4 50 Q2 40 Q3 30 Q4 In Russia, Ukraine and other CIS countries, euro- 20 denominated net sales 10 remained unchanged at EUR 19.3 million. 0 2014 2015
Slide 25: Telko, key figures: Operating profit
Telko, key figures Operating profit MEUR The operating profit rate of 3.5 3.2 3.2 4.7% fell from the 3.0 3.0 comparative period. 2.8 Q1 2.5 2.3 2.3 2.1 Q2 2.0 1.9 1.8 Q3 1.5 Q4 The operating profit rate in the eastern markets was 1.0 about 6%. 0.5 0.0 2014 2015 2016 Q1, April 28, 2016 25
Slide 26: 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 1000 29.9 900 850 870 864 30.0 28.5 27.8 27.0 800 25.0 Q1 707 706 25.0 24.1 691 680 Q1 700 630 20.7 Q2 Q2 20.0 19.4 19.3 600 559 Q3 500 Q3 15.0 Q4 400 Q4 10.0 300 200 5.0
Slide 27: Kaukomarkkinat
Kaukomarkkinat The best tools for mobile knowledge work Q1, April 28, 2016 27
Slide 28: Kaukomarkkinat: Quarter in brief and outlook for 2016
Kaukomarkkinat Quarter in brief and outlook for 2016 Net sales increased and profitability Outlook for Kaukomarkkinat for 2016 improved. • The service range will be renewed according to the new strategy. • Focus will first be placed on Finland, followed by other European markets. Orders in mobile kn
Slide 29: Kaukomarkkinat, key figures: Net sales
Kaukomarkkinat, key figures Net sales MEUR Net sales increased 18 17.1 by 22%. 16 Q1 14 12.8 12 Q2 10 8.6 Q3 8 7.1 7.5 7.1 6.8 6.7 Q4 The project sales in China 6 5.5 and energy-efficiency 4 equipment sales developed positively. 2 0 2014 2015 2016 Q1, April 28, 2016 29
Slide 30: Kaukomarkkinat, key figures: Operating profit
Kaukomarkkinat, key figures Operating profit MEUR Operating profit improved from the comparative 1.0 0.6 period. 0.5 0.5 Q1 0.0 0.1 0.1 0.0 Q2 -0.5 -0.2 -0.2 -0.3 Q3 -1.0 Q4 Operating profit in the comparative period -1.5 included an impairment -2.0 loss of EUR -1.3 million. -2.0 -2.5 2014 2015 2016
Slide 31: Financials and Financing
Financials and Financing Harri Seppälä Q1, April 28, 2016 31
Slide 32: Income statement
Income statement MEUR Q1/2016 Q1/2015 Ebitda fell to 6.2%. Net sales 98.5 102.0 The comparable operating Ebitda 6.1 7.1 profit and financial items Depreciation, amortization and -2.8 -4.1 include significant items impairment losses affecting comparability. Operating profit 3.3 3.0 Financial income a
Slide 33: Cash flow from operating activities
Cash flow from operating activities MEUR 30.0 Cash flow typical to the 25.0 25.0 period and stood at EUR - 22.0 7.0 million. 20.0 Q1 At the level of the 15.0 Q1-Q2 comparative period. 10.7 10.0 6.2 Q1-Q3 5.0 Q1-Q4 Change in working capital 0.5 0.0 EUR -12.1 million. -5.0 -2.3 -4.1 -10.0 -7.4 -7.0 20
Slide 34: Equity ratio and gearing
Equity ratio and gearing % % 38 140 Items affecting 37 120 comparability in Q1/2015 36 included gain from the sale 100 35 of shares and impairment 80 loss. 34 60 33 40 Scheduled payments 32 31 20 related to vessel investments total EUR 5 30 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 mil
Slide 35: Structure of liabilities
Structure of liabilities Interest bearing liabilities on Interest bearing liabilities on March 31, 2015: EUR 124 million March 31, 2016: EUR 124 million 7% 6% 3% 8% Loans Loans 17% 9% Commercial papers Bond Revolving credit TyEL pension loan facilities Others Others 73% 77% Q1, April 28, 2016 35
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 In 2016, a revolving credit 4.4 facility of EUR 20 million 60.0 will fall due. 11.0 50.0 1.4 1.4 TyEL pension loan Possibility to call a hybrid 40.0 Bond bond. 20.0 Hybrid bond (call) 30.0 Revolving credit facilities Commercial papers, 40.0 49.0 Loan
Slide 37: Outlook for 2016
Outlook for 2016 • Market uncertainty will continue. The increase in the price of • Industrial production is not expected to increase in Aspo's oil has strengthened the main market areas during 2016. Russian ruble. • A slight recovery in the industrial production of Aspo’s International dry bulk cus
Slide 38: Guidance for 2016
Guidance for 2016 • Guidance will remain unchanged. • Aspo's operating profit will be EUR 17–24 (20.6) million. Q1, April 28, 2016 40
Slide 39: Thank you!
Thank you! Q1, April 28, 2016 41