Slide 1: Aspo Q3/2021: Record performance continued in ESL Shipping and Telko business
Aspo Q3/2021: Record performance continued in ESL Shipping and Telko business CEO Rolf Jansson October 27, Aspo Q3/2021 1 2021
Slide 2: Rolf Jansson, CEO, Aspo Group
Rolf Jansson CEO, Aspo Group • Started as a CEO of Aspo Group on August 16, 2021 • Prior professional experience include: • CEO and SVP Logistics, VR Group • SVP, Nordea Corporate Finance • Principal, Booz Allen Hamilton • Education: • M.Sc. in engineering • M.Sc. in economics 2
Slide 3: Towards a new Aspo Group
Towards a new Aspo Group • Strengthened general economic development has supported Aspo’s performance and the company is in a good shape • Strong team enables further improvements going forward • We will revert to the future of Aspo and its strategy during the Capital Markets Day on December 1st • T
Slide 4: Overall Q3 market development
Overall Q3 market development Strong economic development supporting Aspo’s performance • Strong demand and increasing price levels for ESL Shipping • Strong demand and growth in sales of higher value-added products for Telko • Overall increasing, but highly volatile prices of Leipurin’s products Po
Slide 5: Aspo Q3/2021: Record performance continued
Aspo Q3/2021: Record performance continued Net sales growth driven by overall strong market EUR million Q3/2021 Q1-Q3/2021 development of ESL and Telko Net sales 148.0 423.2 (118.4) (367.2) The Group’s operating profit and earnings per share at record level Operating profit 11.0 28.5 excl. Kauko 3.4
Slide 6: Strong net sales growth of Aspo Group, but still somewhat behind 2019 top line
Strong net sales growth of Aspo Group, but still somewhat behind 2019 top line EUR million Net sales Revenue growth % 165 30% • Q1-Q3/2021 Net sales was 423 m€ 150 25% - +15% vs. 2020 (367 m€) 135 20% - -4% vs. 2019 (441 m€) 120 15% • All business segments show strong growth 105 10% during the begin
Slide 7: The relative share of Russia and CIS of Aspo Group net sales continues to decrease
The relative share of Russia and CIS of Aspo Group net sales continues to decrease Other countries 14 % (12%) • The relative share of Russia and CIS of Aspo Group net sales continued to Finland decrease. This is mainly due to the 33 % (35%) following: - Strong growth of ESL Shipping Russia, the othe
Slide 8: Very strong operating profit of Aspo Group due to the record performance of ESL and Telko
Very strong operating profit of Aspo Group due to the record performance of ESL and Telko EUR million • Q1-Q3/2021 operating profit was 28.5 m€ Operating Profit Operating Profit % (6.7%) excl. Kauko 3.4 m€ write-down and 12 12% 25.1 m€ (5.9%) incl. Kauko 3.4 m€ write- down vs. 10 10% - 11.7 m€ (3.2%
Slide 9: Strong cash flow generation continued
Strong cash flow generation continued EUR million • Cash flow from operating activities in Q1-Q3 was 33.3 m€ (39.9/2020 and 33.6/2019) 70 • Free cash flow decreased to 23.4 m€ 60 (34.5/2020 and 26.7/2019) • Drivers of development 2021 vs. 2020: 50 - Telko’s product range was significantly 40 reduced
Slide 10: ROE has exceeded the target level in each quarter of 2021
ROE has exceeded the target level in each quarter of 2021 ROE % 30,0 • ROE reached 25.5% (exl. Kauko write-down 24,5 25,5 of 3.4 m€) and 22.0% (incl. Kauko write- 25,0 down) YTD in 2021 compared with 8.3% in 21,8 22,0 2020 and 14.0% in 2019 Target >20% 20,0 • Positive ROE development is driven parti
Slide 11: All-time-high operating profit boosted by strong demand
All-time-high operating profit boosted by strong demand October 27, Aspo Q3/2021 11 2021
Slide 12: ESL Shipping's net sales already exceeds pre covid levels
ESL Shipping’s net sales already exceeds pre covid levels EUR million • Q1-Q3/2021 Net sales was 136.7 m€ Net sales Growth 50 120 % - +27.5% vs. 2020 (107.2 m€) - +5.4% vs. 2019 (129.7 m€) 40 90 % • Demand and transportation volumes for all ESL Shipping vessel types and across all customer segments,
Slide 13: ESL Shipping's operating profit was at record level
ESL Shipping’s operating profit was at record level • Q1-Q3/2021 operating profit was 17.0 m€ (12.4%) vs. EUR million Operating profit Operating profit % - 2.8 m€ (2.6%) in 2020 8 15% - 10.2 m€ (7.9%) in 2019 7 13% • Strong result despite extensive docking days (116 days during Q3/2021). 6 11% Inves
Slide 14: ESL Shipping's transportation volumes back at normal after covid
ESL Shipping’s transportation volumes back at normal after covid 5 AtoB@C acquisition 50% • Strong 26% growth in tons 4,5 New LNG-fueled transported: 3.9 mTons in Q3/2021 vessels 40% vs. 3.1 mTons in Q3/2020 4 • The transportation volume forecasts 30% 3,5 for the various customer segments for the re
Slide 15: The Baltic Dry Index shows increasing prices driven by demand
The Baltic Dry Index shows increasing prices driven by demand The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. The Baltic Dry Index takes into account 23 different shipping routes carrying coal, iron ore, grains and many other commodities. October 27,
Slide 16: ESL Shipping decided on a 70 m€ growth investment in six hybrid vessels
ESL Shipping decided on a 70 m€ growth investment in a series of six highly energy-efficient hybrid vessels MAIN PARTICULARS Length 90 m Breadth 16 m Draft 6m DWT 5,350 tons Cubic capacity 7,650 m 3 Deliveries Q3/2023 - October 27, Aspo Q3/2021 16 2021
Slide 17: Highlights of Green Coaster vessel investment
Highlights of Green Coaster vessel investment 1 70 m€ growth investment into key customer segment 2 Most efficient and environmentally friendly vessels in the world in their size class 3 Six new vessels mainly operating in the Baltic Sea and the North Sea. The first vessel will arrive in Q3/2023. Al
Slide 18: Another record quarter characterised by strong demand combined with high price levels
Another record quarter characterised by strong demand combined with high price levels October 27, Aspo Q3/2021 18 2021
Slide 19: Telko's strong Q2 growth continued in Q3
Telko’s strong Q2 growth continued in Q3 • Q1-Q3/2021 Net sales was 205 m€ EUR million Net sales Revenue growth % - +10.5% vs. 2020 (186 m€) 90,0 30% - -9.7% vs. 2019 (227 m€) 80,0 • Growth continued during Q3 with +17% 20% compared with last year. Q3 net sales exceeded 70,0 the pre covid level in 2
Slide 20: Telko's strong operating profit was driven by focused growth in higher value-added products
Telko’s strong operating profit was driven by focused growth in higher value-added products • Q1-Q3/2021 operating profit was 16 m€ (7.8%) excl. Kauko 3.4 m€ write-down and 12,5 m€ (6.1%) incl. Kauko 3.4 m€ write-down vs. Operating profit Operating profit% - 10.8 m€ (5.8%) in 2020 EUR million 9 9% -
Slide 21: Telko Ltd has agreed to acquire shares of Estonian company Mentum AS
Telko Ltd has agreed to acquire shares of Estonian company Mentum AS • After the review period Aspo announced that Telko will acquire all shares of Estonian company Mentum AS. • Mentum is a Castrol ambassador, and it operates in the premium lubricants business in automotive, industrial and marine bu
Slide 22: Net sales and operating profit showing positive trend in an increasing, but volatile pricing environment
Net sales and operating profit showing positive trend in an increasing, but volatile pricing environment October 27, Aspo Q3/2021 22 2021
Slide 23: Leipurin's net sales growth has picked-up during 2021, but top line still lags 2019 levels
Leipurin’s net sales growth has picked-up during 2021, but top line still lags 2019 levels • Q1-Q3/2021 Net sales was 81.4 m€ EUR million Net sales Growth % - +9.4% vs. 2020 (74.4 m€) 35 20% - -2.9% vs. 2019 (83.8 m€) 15% • Leipurin's sales development was good in the 30 third quarter, despite the s
Slide 24: Leipurin's operating profit showing a positive trend during 2021
Leipurin’s operating profit showing a positive trend during 2021 • Q1-Q3/2021 operating profit was 1.2 m€ EUR million Operating profit Operating profit% (1.5%) vs. 1,2 6% - 1.2 m€ (1.6%) in 2020 - 1.9 m€ (2.3%) in 2019 1 5% • The operating profit margin reached 2.2% in Q3. 0,8 4% • Overall increasin
Slide 25: Financial position and guidance
Financial position and guidance October 27, Aspo Q3/2021 25 2021
Slide 26: Gearing lowered close to the 130% target level
Gearing lowered close to the 130% target level Equity ratio % Gearing % 40 200 • The equity ratio and 35 180 gearing continued to 30 160 improve during Q3/2021 Gearing 25 140 target <130% • The second dividend 20 120 installment of 0.17 15 100 eur/share will be made on Nov 5, 2021. 10 80 5 60 0 40 Q
Slide 27: Liquidity and debt profile as of Q3/2021
Liquidity and debt profile as of Q3/2021 Interest-bearing debt excl. lease Maturity profile (mEUR) liabilities (mEUR) 100 26 90 Total interest-bearing 1 80 liabilities (excl. lease 5 liabilities) 166mEUR 70 Total Interest-bearing net 60 debt (excl. lease liabilities) 50 142mEUR 133 40 30 20 Term loa
Slide 28: Guidance for 2021
Guidance for 2021 Aspo’s operating profit in 2021 will be approximately 30–36 (19.3) m€ The guidance includes the negative impact of 3.4 m€, caused by the write- down of Kauko’s goodwill October 27, Aspo Q3/2021 28 2021
Slide 29: Aspo Q3/2021: Summary
Aspo Q3/2021: Summary • The Group’s operating profit and earnings per share on record level • Strong economic development supports Aspo Group’s performance while post pandemic market disruption continues to cause inefficiencies and weakens predictability • Aspo Group’s strategy and outlook of the bu
Slide 30: Coming events
Coming events Aspo Group’s Capital Markets Day December 1, 2021 Aspo Group’s Financial Statements release February 16, 2022 www.aspo.com Twitter: @AspoPlc October 27, Aspo Q3/2021 30 2021
Slide 31: Q&A
Q&A +358 9 817 10310 (62598237#) October 27, Aspo Q3/2021 31 2021
Slide 32: Appendix
Appendix October 27, Aspo Q3/2021 32 2021
Slide 33: Key figures
Key figures Q3/2021 Q3/2020 1-9/2021 1-9/2020 Net sales, m€ 148.0 118.4 423.2 367.2 Operating profit, m€ 7.6 3.6 25.1 11.7 Operating profit, % 5.1 3.0 5.9 3.2 ESL Shipping, operating profit, m€ 7.1 -0.1 17.0 2.8 Telko, operating profit, MEUR 2.5 4.2 12.5 10.8 Leipurin, operating profit, MEUR 0.6 0.3
Slide 34: Shareholders
Shareholders Non-domestic Personnel fund and nominee registrations 4 % 1% 14 000 Institutions 19 % 12 000 11 498 10 904 10 260 Group Executive 10 000 9 502 Committee 9 060 1% 8 000 Private investors 53 % 6 000 Board of Directors 4 000 22 % 2 000 0 2017 2018 2019 2020 30/09/2021 Number of shareholder