Slide 1: Aspo Q3
Aspo Q3 October 27, 2016 CEO Aki Ojanen Group Treasurer Harri Seppälä
Slide 2: Aspo had good quarter
Aspo had good quarter Net sales increased to EUR Operating profit decreased Positive net cash from 118.2 (111.5) million. to EUR 6.0 (7.3) million. operating activities. Net sales increased by 6% Earnings per share were Strong net cash from (-14%). EUR 0.16 (0.18). operating activities expected in Q
Slide 3: Operating profit decreased in Q3
Operating profit decreased in Q3 Cumulatively at the comparative period’s level Operating profit MEUR Operating profit decreased 28 in Q3 in ESL Shipping, 23.4 Leipurin and Telko. 24 20.6 Q1 Kauko’s operating profit 20 17.9 improved. Q1-Q2 16 14.4 14.1 Q1-Q3 12 10.1 Cumulative operating profit 8.1 Q
Slide 4: Long-term financial targets: Operating profit, %
Long-term financial targets Operating profit, % % Operating profit rate 8 increased from H1. 7 Q1 6 Remained almost at the 5.0 4.8 Q1-Q2 comparative period’s level. 5 4.4 4.4 4.6 4.2 3.8 Q1-Q3 4 3.5 3.4 3.3 Operating profit in H2 2.9 Q1-Q4 3 usually significantly better 2 than in H1. 1 0 2014 2015 2
Slide 5: Long-term financial targets: Return on equity
Long-term financial targets Return on equity, (ROE) % ROE improved from H1 and 28 26.2 was 13.4%. 24 20.8 Q1 18.8 20.1 19.1 20 17.8 Q1-Q2 15.6 16 13.4 Q1-Q3 12 11.0 In the comparative period a 9.5 8.9 Q1-Q4 sales gain from shares 8 increased ROE starting 4 from Q1. 0 2014 2015 2016 Q3 October 27, 20
Slide 6: Long-term financial targets: Gearing
Long-term financial targets Gearing % Gearing decreased from Q2 140 and was 104%. 124 119 115 120 112 111 109 101 100 105 101 104 Q1 100 Q1-Q2 80 Q1-Q3 60 Gearing is at the Q1-Q4 comparative period’s level 40 and in line with the long- 20 term target. 0 2014 2015 2016 Q3 October 27, 2016 6 The targe
Slide 7: Net sales turned to growth
Net sales turned to growth Net sales by quarter MEUR Net sales increased by 6% 140 130 in Q3. 123 123 122 120 116 118 108 110 112 102 Q1 100 99 Q1-Q3 growth was 3%. Q2 80 Q3 60 Q4 Strongest growth from the 40 eastern markets and Finland. 20 Net sales in Telko and 0 Kauko increased. 2014 2015 2016 Q3
Slide 8: Net sales by segment
Net sales by segment MEUR 70 Distribution of net sales, Q3/2016 60 ESL Shipping 15% 50 Leipurin 23% 40 Telko 54% 30 Kauko 8% 20 10 0 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 ESL Shipping 19.9 19.9 16.2 16.7 17.9 Leipurin 28.3 31.5 26.2 28.8 27.0 Telko 56.5 53.6 49.4 62.2 63.8 Kauko 6.8 17.1 6.7 8.5 9.5 Q3 Octo
Slide 9: Net sales by market area
Net sales by market area MEUR 45 Distribution of net sales, Q3/2016 40 35 Finland 33% 30 Scandinavia 10% 25 Baltic countries 11% 20 Russia, Ukraine and 33% 15 other CIS countries 10 Other countries 13% 5 0 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Finland 35.0 38.8 34.1 37.7 38.9 Scandinavia 15.6 11.6 10.8 12.6
Slide 10: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR Net sales in eastern 45 41.7 41.2 markets increased by 11% 40 39.0 38.1 38.9 to EUR 38.9 million (35.0). 35.0 34.7 Q1 The decrease in the value 35 32.2 31.1 of RUB stopped. 30 Q2 26.4 26.6 25 Q3 20 Q4 Telko’s overall growth and 15 the increase i
Slide 11: Aspo's businesses
Aspo’s businesses Q3 October 27, 2016 11
Slide 12: ESL Shipping
ESL Shipping Leading marine logistics provider for bulk cargo Q3 October 27, 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 are low. In Q3, operations expanded to the Canadian arctic. Profitability is based on special expertise and unique services. Operating in the region offered significant added experience in arctic operations. Operating pro
Slide 14: ESL Shipping, key figures: Net sales
ESL Shipping, key figures Net sales Net sales decreased by MEUR 10% due to the weak market 25 23.2 situation of Supramax 21.2 21.6 19.9 19.9 vessels. 20 19.2 18.2 18.2 17.9 Q1 16.2 16.7 Q2 15 Q3 Freight volumes decreased 10 Q4 slightly from the comparative period’s level 5 and were 2.8 million tons
Slide 15: ESL Shipping, key figures: Operating profit
ESL Shipping, key figures Operating profit MEUR Operating profit decreased 6 by 23% and was EUR 3.4 5.2 million (4.4). 5 4.8 4.4 4.5 Q1 Supramax vessels 4 Q2 produced a loss. 3.3 3.3 3.4 2.9 Q3 3 2.7 2.5 In H2 operating profit is 2.2 Q4 2 usually significantly better than in H1. 1 0 2014 2015 2016 Q
Slide 16: Baltic Dry Index 2011-2016
Baltic Dry Index 2011‒2016 Source: Bloomberg Q3 October 27, 2016 16
Slide 17: ESL Shipping in the arctic in 2016
ESL Shipping in the arctic in 2016 Q3 October 27, 2016 17
Slide 18: Leipurin
Leipurin From breads and recipes to a comprehensive selection Q3 October 27, 2016 18
Slide 19: Leipurin: Quarter in brief and outlook for 2016
Leipurin Quarter in brief and outlook for 2016 The prices of key raw materials have been Net sales decreased to EUR 27.0 million rising. (28.3). The market of bakery products is showing Operating profit at a low level EUR 0.4 a growth thanks to OOH and snack million (0.8). Machinery operations still
Slide 20: Leipurin, key figures: Net sales
Leipurin, key figures Net sales MEUR Net sales decreased to EUR 40 36.1 27.0 million (28.3). 34.5 35 34.1 31.5 30.1 29.7 Q1 30 28.3 28.8 28.3 27.0 26.2 Q2 25 20 Q3 Net sales in raw materials 15 Q4 increased and decreased in 10 machinery operations. 5 0 2014 2015 2016 Q3 October 27, 2016 20
Slide 21: Leipurin, key figures: Operating profit
Leipurin, key figures Operating profit MEUR Operating profit decreased 2 1.9 to EUR 0.4 million (0.8). 1.8 1.7 1.6 Q1 In Russia operating profit 1.4 rate of raw materials was Q2 1.2 good, about 10%. 1 Q3 0.8 Machinery operations 0.8 0.7 Q4 0.6 produced a loss. 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.3 0.2 0 2
Slide 22: 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 493 Q1 10.0 500 8.9 9.1 403 435 448 Q2 427 8.0 405 404 404 Q2 8.0 7.7 400 7.1 7.2 353 6.3 Q3 Q3 6.1 6.0 300 Q4 Q4 4.0 200 2.0 100 0.
Slide 23: Telko
Telko Raw material solutions for the industry Q3 October 27, 2016 23
Slide 24: Telko: Quarter in brief and outlook for 2016
Telko Quarter in brief and outlook for 2016 Prices of plastic raw materials decreased Net sales increased significantly. from the second quarter. The price level of industrial chemicals remained low. The highest growth came from the eastern markets. Industrial demand remained unchanged. Despite the
Slide 25: Telko, key figures: Net sales
Telko, key figures Net sales MEUR Net sales increased by 13% 70 62.2 63.8 to EUR 63.8 million (56.5). 60.4 61.1 60 55.8 55.2 56.5 53.6 50.0 Q1 49.6 49.4 50 Q2 40 Q3 30 Q4 Euro-denominated growth in Russia, Ukraine and 20 other CIS countries was 10 16%. Net sales exceeded the level preceeding the 0 2
Slide 26: Telko, key figures: Operating profit
Telko, key figures Operating profit MEUR Operating profit rate 3.5 3.2 3.2 decreased to 3.6% (5.7). 3.0 3.0 3.0 2.8 Q1 Operating profit decreased 2.5 2.3 2.3 2.3 2.1 Q2 in the eastern markets. 2.0 1.9 1.8 Q3 1.5 Q4 Operating profit rate in the eastern markets fell clearly 1.0 short of 5%. 0.5 0.0 20
Slide 27: 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 29.9 30.0 28.5 28.6 1200 1155 27.8 27.0 24.2 25.0 Q1 25.0 1000 946 Q1 20.7 850 870 864 19.4 Q2 Q2 20.0 19.3 800 Q3 707 691706 680 630 Q3 15.0 600 559 Q4 Q4 10.0
Slide 28: Kauko
Kauko The best tools for mobile knowledge work 28 Q3 October 27, 2016
Slide 29: Kauko: Quarter in brief and outlook for 2016
Kauko Quarter in brief and outlook for 2016 Net sales increased by 40% to EUR 9.5 Net sales of mobile knowledge work (6.8) million. increased from the comparative period. The major agreement concluded in Q2 Operating profit increased to EUR 0.5 (0.1) resulted to deliveries in Q3. Net sales and milli
Slide 30: Kauko, key figures: Net sales
Kauko, key figures Net sales Net sales of mobile MEUR 18 17.1 knowledge work and energy efficiency 16 Q1 equipment are increasing. 14 12.8 12 Q2 10 9.5 Q3 8.6 8.5 8 7.1 7.5 7.1 6.8 6.7 Q4 Net sales is increasing in 6 5.5 Finland. 4 Significant net sales were 2 achieved in China in Q4 0 2015 thanks t
Slide 31: Kauko, key figures: Operating profit
Kauko, key figures Operating profit Good operating profit in Q3. MEUR 1.0 0.5 0.6 0.5 0.5 0.0 0.1 0.1 0.0 Q1 -0.5 -0.2 -0.2 -0.3 -0.3 Q2 -1.0 Q3 The operating profit is -1.5 Q4 expected to have a positive development but still vary -2.0 -2.0 from one quarter to the -2.5 next. 2014 2015 2016 Q3 Octob
Slide 32: Financials and Financing
Financials and Financing Harri Seppälä Q3 October 27, 2016 32
Slide 33: Income statement
Income statement MEUR Q1-Q3/2016 Q1-Q3/2015 Ebitda rate weakened. Net sales 332.9 323.7 Operating profit rate decreased Ebitda 22.7 24.0 to 4.2% (4.4) in Q1-Q3 and to Depreciation, amortization and -8.6 -9.6 5.1% (6.5) in Q3. impairment losses In 2015 operating profit Operating profit 14.1 14.4 incl
Slide 34: Net cash from operating activities
Net cash from operating activities MEUR 30.0 Net cash from operating 25.0 25.0 22.0 activities improved in Q3 and 20.0 was EUR 8.5 million. Q1 Cumulative net cash from 15.0 10.7 Q1-Q2 operating activities was EUR 10.0 -2.5 million (-10.7). 6.2 5.0 Q1-Q3 0.5 0.0 Q1-Q4 Change in working capital was EU
Slide 35: Equity ratio and gearing
Equity ratio and gearing % % 38 140 Gearing 104 %. 37 120 36 Equity ratio 36%. 100 35 80 34 60 33 40 Payments related to vessel 32 31 20 investments will total about EUR 5 million in Q4. EUR 30 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 4.6 million of the 2013 hybrid bond wi
Slide 36: Structure of liabilities
Structure of liabilities Interest bearing liabilities on Interest bearing liabilities on September 30, 2015: EUR 139 million September 30, 2016: EUR 133 million 8% 8% 7% 7% Loans Loans 7% Commercial papers 7% Commercial papers Others Others 9% TyEL pension loan TyEL pension loan 16% 62% Bond 69% Bon
Slide 37: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 100.0 Redemption of the hybrid 90.0 4.4 bond of about EUR 4.6 80.0 11.0 million (call) 11/2016. 70.0 25.0 TyEL pension loan 60.0 Bond 50.0 1.4 Hybrid bond (call) 40.0 1.4 Revolving credit facilities No significant credit 30.0 Loans 40.0 20.0 49.0 agreemen
Slide 38: General market outlook for 2016
General market outlook for 2016 • Despite the uncertainty in Russia and the eastern Uncertainty in the eastern markets, business operations are expected to develop markets may strongly positively in the market area. The Russian GDP is influence to the currency expected to grow. rates. • Internationa
Slide 39: Guidance for 2016
Guidance for 2016 • Aspo specifies its guidance. • New guidance: Aspo's operating profit will be approximately EUR 19–22 (20.6) million in 2016. • Previous guidance: Aspo’s operating profit will be EUR 17–24 million (20.6) in 2016. Q3 October 27, 2016 41