Slide 1: Aspo's Q2
Aspo’s Q2 August 13, 2015 CEO Aki Ojanen Group Treasurer Harri Seppälä
Slide 2: Aspo's strategy
Aspo’s strategy • Aspo is a 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: General market situation
General market situation • Industrial production has not grown in the main markets. • The prices of raw materials important to Aspo’s business operations have been and continue to be at a low level. Low price levels have a negative effect on net sales. • The crisis between Russia and western countri
Slide 4: Aspo's financial targets
Aspo’s financial targets • Operating profit closer to 10% than 5% – Comparable operating profit for the first half-year stood at 4.0%. • ROE over 20% on average – At the end of Q2 ROE was 20.1%. • Gearing of up to 100% – At the end of Q2 gearing was 118.6%. • Aspo’s dividend policy: Aspo will distri
Slide 5: Financial targets: Return on equity
Financial targets Return on equity ROE, % 30 25 20 17,8 20.1* 15 16,4 15,2 11,8 10 8,9 5 0 2010 2011 2012 2013 2014 Q1-Q2/2015 Target * The Alandia shares´ and impairment´s impact on the annualized ROE is about 7 percentage points. 5
Slide 6: Financial targets: Operating profit
Financial targets Operating profit, % 10 9 8 7 6 5 4 3 6,0 3,8 5,1 2 4,5 4,2 3,5 3,7 3,2 1 0,8 1,2 0 -1 -1,3 -2 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Excluding non-recurring items Non-recurring items (impairment) Target 6
Slide 7: Aspo Q2/2015
Aspo Q2/2015 • Earnings per share were EUR 0.10 (0.17). • Profit for the quarter decreased to EUR 3.3 million (5.5). • The operating profit decreased to EUR 4.1 (6.3) million. • Net sales decreased to EUR 110.2 (122.7) million. • Aspo specifies its guidance for 2015. New guidance: Aspo’s profit will
Slide 8: Key factors affecting the result for Q2
Key factors affecting the result for Q2 • ESL Shipping achieved an excellent Ebitda level of 24%. Its operating profit was EUR 2.5 million. • Telko’s operating profit was EUR 2.3 million ̶ a good result in a difficult market situation. Profitability in eastern markets remained above the level of 5%,
Slide 9: Russia, Ukraine and other CIS countries Q2/2015
Russia, Ukraine and other CIS countries Q2/2015 • The crisis between Russia and Ukraine is ongoing. Economic sanctions and import restrictions are expected to be prolonged. • The price of oil has decreased to a low level, which is further weakening the Russian economy. • GDP is decreasing in Russia,
Slide 10: Net sales, quarterly: Russia, Ukraine + other CIS
Net sales, quarterly Russia, Ukraine + other CIS-countries MEUR 45 41,6 41,7 40 35 32,2 30 25 20 15 10 5 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 10
Slide 11: Net sales / market area Q2
Net sales / market area Q2 MEUR Q2/15 Q2/14 Change, % Finland 38.5 38.3 1 Scandinavia 12.9 12.0 8 Baltic countries 13.3 14.7 -10 Russia, Ukraine + other CIS 32.2 41.7 -23 Other countries 13.3 16.0 -17 Total 110.2 122.7 -10 11
Slide 12: Group net sales, quarterly
Group net sales, quarterly MEUR 140 123,6 122,7 120 110,2 100 80 60 40 20 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 12
Slide 13: Net sales / segment Q2
Net sales / segment Q2 MEUR Change, % 140 -10% 122.7 120 -17% 110.2 100 -9% 80 60 -14% 40 20 -5% 0 Q2/2014 Q2/2015 ESL Shipping Leipurin Telko Kaukomarkkinat 13
Slide 14: Group operating profit, quarterly
Group operating profit, quarterly MEUR 9 8 7 6,3 6 5 4.3* 4,1 4 3 2 1.5 1 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 * Excluding a non-recurring impairment 14
Slide 15: Operating profit / segment Q2
Operating profit / segment Q2 MEUR Q2/15 Q2/14 Change, % ESL Shipping 2.5 2.7 -7 Leipurin 0.7 1.9 -63 Telko 2.3 3.2 -28 Kaukomarkkinat 0.1 0.0 - Other operations -1.5 -1.5 0 Total 4.1 6.3 -35 15
Slide 16: Net sales and operating profit Q2
Net sales and operating profit Q2 2014/2015 Q1 Q2 Q3 Q4 Cum. Net sales 102.0 110.2 212.2 MEUR 108.0 122.7 129.6 122.6 482.9 Operating profit 3.0 4.1 7.1 MEUR 3.8 6.3 7.8 5.5 23.4 16
Slide 17: Aspo's business operations
ae al : ft ASPO Aspo’s business operations
Slide 18: Aspo's countries of operation
Aspo’s countries of operation 18
Slide 19: Integral part of Finnish security of supply
Integral part of Finnish security of supply
Slide 20: ESL Shipping Q2/2015
ESL Shipping Q2/2015 • International dry bulk cargo rates are at a low level but have ceased to decrease. • In Q2, ESL Shipping’s vessels mainly operated in the Baltic Sea, the North Sea and international traffic. • Net sales decreased as a result of the capacity lowered by one vessel, as well as sh
Slide 21: ESL Shipping key figures Q2
ESL Shipping key figures Q2 Q2/15 Q2/14 Change, % Net sales, MEUR 18.2 19.2 -5 Operating profit, MEUR 2.5 2.7 -7 Operating profit, % 13.7 14.1 21
Slide 22: Baltic Dry Index 2014‒2015
Baltic Dry Index 2014‒2015 Source: Bloomberg 22
Slide 23: The bakery specialist
The bakery specialist
Slide 24: Leipurin Q2/2015
Leipurin Q2/2015 • Prices remained at a low level but increased slightly before the harvest season. • Net sales were EUR 29.7 (34.5) million. Net sales decreased as a result of lower sales volumes of raw materials and decreased machine deliveries in Russia compared to the reference period as well as
Slide 25: Leipurin key figures Q2
Leipurin key figures Q2 Q2/15 Q2/14 Change, % Net sales, MEUR 29.7 34.5 -14 Operating profit, MEUR 0.7 1.9 -63 Operating profit, % 2.4 5.5 25
Slide 26: Russia, Ukraine + other CIS countries net sales Q2
Russia, Ukraine + other CIS countries net sales Q2 MEUR 14 11,8 12 11,1 9,8 10 8,0 8 7,7 6 5,5 4 2 0 Q2/10 Q2/11 Q2/12 Q2/13 Q2/14 Q2/15 26
Slide 27: Leading expert in plastic raw materials and chemicals
Leading expert in plastic raw materials and chemicals
Slide 28: Telko Q2/2015
Telko Q2/2015 • The prices of the raw materials sold by Telko increased quarter-on-quarter but are at a low level. • Net sales were EUR 55.2 (60.4) million. • The operating profit was at a good level: EUR 2.3 (3.2) million. • Net sales in Russia, Ukraine and other CIS countries decreased to EUR 24.2
Slide 29: Telko key figures Q2
Telko key figures Q2 Q2/15 Q2/14 Change, % Net sales, MEUR 55.2 60.4 -9 Operating profit, MEUR 2.3 3.2 -28 Operating profit,% 4.2 5.3 29
Slide 30: Russia, Ukraine + other CIS countries net sales Q2
Russia, Ukraine + other CIS countries net sales Q2 MEUR 35 32,4 30,5 30 28,5 25 24,2 21,3 20 16,7 15 10 5 0 Q2/10 Q2/11 Q2/12 Q2/13 Q2/14 Q2/15 30
Slide 31: Expert in energy efficiency
KAUKO MARKKINAT Expert in energy efficiency
Slide 32: Kaukomarkkinat Q2/2015
Kaukomarkkinat Q2/2015 • Net sales were EUR 7.1 (8.6) million. • The operating profit grew and amounted to EUR 0.1 (0.0) million. • Sales of special IT equipment developed well. Sales of rugged computers and tablets also developed well, even though their market as a whole has decreased strongly. • N
Slide 33: Kaukomarkkinat key figures Q2
Kaukomarkkinat key figures Q2 Q2/15 Q2/14 Change, % Net sales, MEUR 7.1 8.6 -17 Operating profit, MEUR 0.1 0.0 - Operating profit, % 1.4 0.0 33
Slide 34: Financing and financials
Financing and financials Harri Seppälä 34
Slide 35: Income statement Q1-Q2
Income statement Q1-Q2 MEUR 2015 2014 Net sales 212.2 230.7 Ebitda 13.8 15.7 Depreciations and impairment -6.7 -5.6 Operating profit 7.1 10.1 Financial income and expenses 4.0 -2.5 Profit before taxes 11.1 7.6 Income taxes -0.8 0.3 Profit for the period 10.3 7.9 Earnings/share, EUR 0.32 0.24 35
Slide 36: Gearing
Gearing % 200 180 170,2 165,6 160 143,1 140 124,2 118,6 120 112,0 110,5 98,2 101,0 99,9 100 80 60 40 20 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Target 36
Slide 37: Operational cash flow
Operational cash flow MEUR 16 15,8 14 13,4 11,7 12 10 8,5 8 6 4 3,3 1,8 2 0,5 0 -2 -4 -2,8 -6 -8 -7,4 -10 -12 -10,9 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 37
Slide 38: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 160 140 130,2 131,9 132,5 120 124,5 116,9 118,4 113,7 108,9 100 105,1 101,5 80 60 40 20 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Net debt Cash and cash equivalents 38
Slide 39: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 60 20.0 50 40,0 40 20,0 42.0 30 20 20,0 19,0 10 5,0 0 2015 2016 2017 2018 2019+ Loans Revolving credit facility Hybrid bond (call) Commercial papers, overdraft facilities and financial leasing agreements not included. 39
Slide 40: Balance sheet
Balance sheet MEUR Assets Shareholders’ equity and liabilities 350 350 312.7 312.7 298.3 298.3 300 300 88,3 79,0 250 250 125,5 120,5 200 48,5 200 52,0 150 150 78,0 87,0 100 100 167,3 175,9 50 50 99,8 100,2 0 0 Q2/2015 Q2/2014 Q2/2015 Q2/2014 Non-current assets Shareholders' equity Inventories Long-t
Slide 41: Personnel / segment Q2
Personnel / segment Q2 350 300 287 259 250 200 221 150 100 44 50 24 0 2010 2011 2012 2013 2014 Q2/2015 Tot. 712 Tot. 814 Tot. 871 Tot. 869 Tot. 879 Tot. 835 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 41
Slide 42: Personnel / market area Q2
Personnel / market area Q2 500 450 423 400 350 300 279 250 200 150 100 67 50 47 19 0 2010 2011 2012 2013 2014 Q2/2015 Tot. 712 Tot. 814 Tot. 871 Tot. 869 Tot. 879 Tot. 835 Finland Scandinavia Baltic countries Russia, Ukraine + other CIS Other countries 42
Slide 43: Shareholders / allocation
Shareholders / allocation Share Q2/2015 Number of shareholders Personnel 10000 fund 8684 0.4 % 9000 Non-domestic & 8150 Institutions nominee 8000 7389 25.2 % registrations 6497 3.0 % 7000 6183 6000 5000 4000 3000 2000 Group 1000 Executive Committee 0 Private investors Board 0.7 % 56.5 % 14.2 % 43
Slide 44: Outlook for 2015
ft ASPO Outlook for 2015
Slide 45: Outlook for Aspo Group in 2015
Outlook for Aspo Group in 2015 • The period of low growth in the international economy and in industry in the EU will continue. • The crisis between Russia and Ukraine is expected to continue. The economic sanctions imposed by the West on Russia, as well as the counter-sanctions imposed by Russia, a
Slide 46: Outlook for 2015
Outlook for 2015 • ESL Shipping is focusing on operations requiring special expertise and equipment, which enables it to reach a level of profitability higher than the market level. Capacity utilization for the rest of the year has been ensured to a significant degree through long- term contracts. •
Slide 47: Guidance for 2015
Guidance for 2015 • Aspo specifies its guidance for 2015. • New guidance: Aspo’s profit will increase compared to 2014 or remain at the same level. • Previous guidance: Aspo expects to reach a good result. 47
Slide 48: Thank you!
ft ASPO Thank you! 48