Slide 1: Aspo's Q3
Aspo’s Q3 28.10.2014 CEO Aki Ojanen CFO Arto Meitsalo Group Treasurer Harri Seppälä
Slide 2: Aspo's strategy
Aspo’s strategy • Aspo is conglomerate that owns and continually develops its business operations and structure without predefined schedules. • The structure generates Aspo’s goodwill. • Business operations focusing on B-to-B customers. • Business operations in northern Europe and growth markets. •
Slide 3: Aspo's financial targets
Aspo´s financial targets • Operating profit closer to 10% than 5% – Q3 operating profit 6%, January-September operating profit 5%, • ROE over 20% on average – At the end of Q3 ROE18.8% • Gearing of up to 100% – At the end of Q3 gearing 110% • Aspo´s dividend division policy: Aspo will distribute an
Slide 4: Initial public offering on Leipurin
Initial public offering on Leipurin • Aspo is reviewing the preconditions for initial public offering of Leipurin Plc as a separate company on the Nasdaq Helsinki official list. • The preparations for listing have proceeded as planned. • Aspo would remain as minority owner of the company. • Aspo’s a
Slide 5: Group net sales, quarterly
Group net sales, quarterly MEUR 140 129.6 119.7 120.1 120 100 80 60 40 20 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 5
Slide 6: Aspo Q3/2014
Aspo Q3/2014 • Net sales grew to EUR 129.6 million (120.1) • Operating profit increased significantly to EUR 7.8 million (4.6). • The operating profit margin was 6.0% (3.8). • Earnings per share grew significantly to EUR 0.22 (0.11). • Cash flow from operations during the third quarter was EUR 8.5 m
Slide 7: Group operating profit, quarterly
Group operating profit, quarterly MEUR 9 8 7.8 7 6 5 4.6 4 2.9 3 2 1 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 7
Slide 8: Net sales and operating profit Q3
Net sales and operating profit Q3 2013/2014 Q1 Q2 Q3 Q4 Cum. Net sales 108.0 122.7 129.6 360.3 MEUR 112.3 123.6 120.1 120.3 476.3 Operating profit 3.8 6.3 7.8 17.9 MEUR 0.9 1.5 4.6 3.8 10.8 8
Slide 9: Key reasons for the improved result in Q3
Key reasons for the improved result in Q3 • The Group's net sales and profitability improved within the EU. • ESL Shipping's operating profit has improved as a result of new customer accounts, loading operations at sea and improved fuel economy. • Telko's result in Russia, Ukraine, and other CIS cou
Slide 10: Russia, Ukraine, and other CIS countries 1–9/2014
Russia, Ukraine, and other CIS countries 1–9/2014 • Aspo reduced Telko's exchange rate risk and operational risk in Ukraine already in the fall of 2013 due to the poor national economy in Ukraine. • The crisis escalated between Russia and Ukraine has weakened the region's currencies and reduced econ
Slide 11: Net sales / segment Q3
Net sales / segment Q3 MEUR Change, % 140 8% 129.6 120.1 94% 120 100 -1% 80 60 -1% 40 20 23% 0 Q3/2013 Q3/2014 ESL Shipping Leipurin Telko Kaukomarkkinat 11
Slide 12: Operating profit / segment Q3
Operating profit / segment Q3 MEUR Q3/14 Q3/13 Change, % ESL Shipping 4.8 1.8 167 Leipurin 1.7 2.0 -15 Telko 2.1 2.2 -5 Kaukomarkkinat 0.5 -0.5 200 Other operations -1.3 -0.9 -44 Total 7.8 4.6 70 12
Slide 13: Net sales / market area Q3
Net sales / market area Q3 MEUR Q3/14 Q3/13 Change, % Finland 44.3 37.5 18 Scandinavia 12.1 11.0 10 Baltic countries 13.3 12.5 6 Russia, Ukraine + other CIS 41.2 42.1 -2 Other countries 18.7 17.0 10 Total 129.6 120.1 8 13
Slide 14: Aspo's countries of operation
Asponcountries Aspo’s toimipisteet of operation 14
Slide 15: Net sales, quarterly: Russia, Ukraine + other CIS countries
Net sales, quarterly Russia, Ukraine + other CIS countries MEUR 50 45 41.4 42.1 41.2 40 35 30 25 20 15 10 5 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 15
Slide 16: Aspo's business operations
R ASPO Aspo’s business operations
Slide 17: Integral part of Finnish security of supply
Integral part of Finnish security of supply
Slide 18: ESL Shipping Q3/2014
ESL Shipping Q3/2014 • Dry bulk freight levels were poor. • During the review period, ships mainly operated in the Baltic Sea and the Russian arctic area. • Loading and unloading operations taking place at sea increased from the reference period. • Net sales stood at EUR 21.6 million (17.5). • Profi
Slide 19: ESL Shipping key figures Q3
ESL Shipping key figures Q3 Q3/14 Q3/13 Change, % Net sales, MEUR 21.6 17.5 23 Operating profit, MEUR 4.8 1.8 167 Personnel 223 199 12 19
Slide 20: Baltic Dry Index 2010‒2014
Baltic Dry Index 2010‒2014 Source: Bloomberg 20
Slide 21: The bakery specialist
The bakery specialist
Slide 22: Leipurin Q3/2014
Leipurin Q3/2014 • The prices of the season's grain products sold fell, falling below the reference period. • Net sales stood at EUR 34.1 million (34.3), being at the reference period´s level. • Operating profit fell slightly to EUR 1.7 million (2.0), remaining at a good level, while the operating p
Slide 23: Leipurin key figures Q3
Leipurin key figures Q3 Q3/14 Q3/13 Change, % Net sales, MEUR 34.1 34.3 -1 Operating profit, MEUR 1.7 2.0 -15 Personnel 292 283 3 23
Slide 24: Net sales in Russia, Ukraine + other CIS countries Q3
Net sales in Russia, Ukraine + other CIS countries Q3 Machines, services and raw materials MEUR 12 10.3 9.9 10 8.3 8 6.5 6.2 6 4.3 4 2 0 Q3/09 Q3/10 Q3/11 Q3/12 Q3/13 Q3/14 24
Slide 25: Leading expert in plastic raw materials and chemicals
Leading expert in plastic raw materials and chemicals
Slide 26: Telko Q3/2014
Telko Q3/2014 • The prices of raw materials sold by Telko decreased slightly from the previous quarter. • Net sales stood at EUR 61.1 million (61.7). • Operating profit stood at EUR 2.1 million (2.2). The exchange rate loss of some EUR 0.4 million caused by the declining Russian and Ukrainian curren
Slide 27: Telko key figures Q3
Telko key figures Q3 Q3/14 Q3/13 Change, % Net sales, MEUR 61.1 61.7 -1 Operating profit, MEUR 2.1 2.2 -5 Personnel 254 241 5 27
Slide 28: Net sales in Russia, Ukraine + other CIS countries Q3
Net sales in Russia, Ukraine + other CIS countries Q3 MEUR 35 33.0 31.8 29.9 30 25 23.3 20 17.8 15 10.4 10 5 0 Q3/09 Q3/10 Q3/11 Q3/12 Q3/13 Q3/14 28
Slide 29: Kaukomarkkinat: Expert in energy efficiency
efficiency KAUKO MARKKINAT Expert in energy ah
Slide 30: Kaukomarkkinat Q3/2014
Kaukomarkkinat Q3/2014 • Kaukomarkkinat's net sales amounted to EUR 12.8 million (6.6). • Operating profit improved significantly to EUR 0.5 million (-0.5). Operating profit was reduced by the credit loss and cost provision of EUR 0.3 million. • With regard to Finnish operations, the sale of reinfor
Slide 31: Kaukomarkkinat key figures Q3
Kaukomarkkinat key figures Q3 Q3/14 Q3/13 Change, % Net sales, MEUR 12.8 6.6 94 Operating profit, MEUR 0.5 -0.5 200 Personnel 77 78 -1 31
Slide 32: Financing
R ASPO & o Financing Harri Seppala
Slide 33: Equity ratio and gearing
Equity ratio and gearing % 200 180 170.2 165.6 160 153.3 148.4 143.1 140 131.6 124.2 120 116.3 112.0 110.5 98.2 100 80 60 40 32.9 34.4 33.9 32.4 33.2 27.7 29.0 29.2 29.8 25.6 26.2 20 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Equity ratio Gearing 33
Slide 34: Operational cash flow
Operational cash flow MEUR 16 15.8 14 13.4 11.7 12 10 8.5 8 5.9 6 4 1.8 2 0.5 0 -2 -4 -2.8 -6 -4.8 -8 -8.1 -10 -12 -10.9 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 34
Slide 35: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 160 140 134.4 131.9 132.5 130.2 120 127.3 124.5 118.7 116.9 113.7 111.0 100 101.5 80 60 40 20 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Net debt Cash and cash equivalents 35
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 60 50 47.0 40.0 40 20.0 30 20 20.0 20.0 10.0 10 5.0 5.0 0 2014 2015 2016 2017 2018+ Loans Convertible capital loan Revolving credit facilities Commercial papers, overdraft facilities and financial leasing agreements not included. 36
Slide 37: Liquidity Q3/2014
Liquidity Q3/2014 MEUR Total In use Revolving credit facilities 60.0 15.0 Commercial paper program 80.0 25.0 Cash and cash equivalents 22.4 • Interest-bearing liabilities which will mature within one (1) year total EUR 58.3 million. • Cash + binding unutilized revolving credit facilities total EUR 6
Slide 38: Financials
R ASPO & A Financials _“ Arto Meitsalo
Slide 39: Income statement and key figures Q1-Q3
Income statement and key figures Q1-Q3 MEUR 2014 2013 Net sales 360.3 356.0 Depreciations -8.4 -8.2 Operating profit 17.9 7.0 Net financial expenses -2.9 -3.1 Profit before taxes 15.0 4.0 Profit for the period 14.7 4.2 2014 2013 Earnings/share, EUR 0.46 0.14 Equity ratio, % 33.2 26.2 Equity/share, E
Slide 40: Balance sheet
Balance sheet Shareholder’s equity and MEUR Assets liabilities 350 350 322.5 308.8 322.5 308.8 300 300 96.1 87.1 129.6 250 250 128.2 200 52.6 52.5 200 150 150 87.2 100.6 100 100 173.8 169.2 50 50 105.7 80.0 0 0 Q3/2014 Q3/2013 Q3/2014 Q3/2013 Non-current assets Shareholder's equity Inventories Long-
Slide 41: Financial target: Return on equity
Financial target Return on equity ROE, % 45 40 35 30 25 20 18.8 15 16.4 15.2 10 11.8 8.9 5 0 2010 2011 2012 2013 Q1-Q3/2014 Target 41
Slide 42: Financial target: Operating profit
Financial target Operating profit, % 10 9 8 7 6 5 4 3 6.0 5.1 2 2.0 2.4 3.8 3.5 2.8 3.2 1 1.1 0.8 1.2 0 0.3 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Exluding non-recurring sales gains and losses Non-recurring sales gains and losses Target 42
Slide 43: Personnel / segment Q3
Personnel / segment Q3 350 292 300 254 250 223 200 150 100 77 50 30 0 Q3/2010 Q3/2011 Q3/2012 Q3/2013 Q3/2014 Tot. 720 Tot. 749 Tot. 829 Tot. 833 Tot. 876 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 43
Slide 44: Personnel / market area Q3
Personnel / market area Q3 500 442 450 400 350 300 284 250 200 150 100 67 63 50 20 0 Q3/2010 Q3/2011 Q3/2012 Q3/2013 Q3/2014 Tot. 720 Tot. 749 Tot. 829 Tot. 833 Tot. 876 Finland Scandinavia Baltic countries Russia, Ukraine + other CIS Other countries 44
Slide 45: Shareholders / allocation
Shareholders / allocation Share Q3/2014 Number of shareholders 9000 Personnel 8140 Non-domestic fund 7389 8000 & nominee 0.3% Institutions registrations 25.4% 6497 7000 6183 1.9% 5760 6000 5161 5000 4000 3000 2000 Group executive 1000 Private investors committee Board 2.1% 0 55.7% 14.6% 45
Slide 46: Market value
Market value Share price, EUR Market value, MEUR (incl. own shares) Closing Average 10.00 250 222 8.26 211 198 200 8.00 200 187 6.80 6.47 6.39 5.90 6.03 156 6.00 150 4.00 100 2.00 50 0.00 0 Aspo started its right issue on April 6, 2011. Share prices before this date are historical prices (not adjust
Slide 47: Outlook for 2014
R ASPO utlook for 2014 O
Slide 48: Expectations for Aspo Group in 2014
Expectations for Aspo Group in 2014 • Aspo's objective is to list Leipurin Plc on the stock exchange during the fourth quarter. • The Board of Directors will summon an Extraordinary Shareholders’ Meeting in order to distribute extra dividends. • The known sanctions and import bans caused by the Russ
Slide 49: Guidance for 2014
Guidance for 2014 The guidance remains unchanged: - Aspo's operating profit will increase significantly in 2014 compared to 2013 and amount to EUR 22- 24 million (operating profit for 2013: EUR 10.8 million). - Guidance does not include any positive non- recurring items. 49
Slide 50: Thank you!
R ASPO Thank you!