Slide 1: Aspo’s year 2014 and Q4
Aspo’s year 2014 and Q4 12.2.2015 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. • Business operations focusing on B-to-B customers. • Business operations in northern Europe and growth markets. • Company brands: ESL Shipping, Leipurin, Tel
Slide 3: Exceptionally good year in 2014
Exceptionally good year in 2014 • Net sales increased to EUR 482.9 million (476.3). • Operating profit increased to a record-level of EUR 23.4 million (10.8). • Operational cash flow improved to EUR 22 million (16). • Profit for the period increased to EUR 18.4 million (8.6). • Earnings per share do
Slide 4: Aspo's strategy of structural changes
Aspo's strategy of structural changes • We strive to make value-producing structural changes. • The objective was to list Leipurin Plc on the main list at Nasdaq Helsinki during Q4/2014. • The listing failed as the Russian ruble collapsed at the turn of November to December. • Investors' uncertainty
Slide 5: The financial year of 2014
The financial year of 2014 • Economic recession continued in Finland (GDP declined by 1.5%), and the industrial production continued to decrease. • The interest rates dropped to a record-low level. • The crisis between Russia and Ukraine escalated to a military conflict in Crimea and eastern Ukraine
Slide 6: Crude oil price and EUR/RUB exchange rate development
Crude oil price and EUR/RUB exchange rate development Jan 1 to Dec 31, 2014 120 40 110 50 100 60 Brent Crude Oil (USD/bbl) 90 70 EUR/RUB 80 80 70 90 60 100 50 110 01/2014 02/2014 03/2014 04/2014 05/2014 06/2014 07/2014 08/2014 09/2014 10/2014 11/2014 12/2014 Brent Crude Oil ($/bbl) (LHS) EUR/RUB (RH
Slide 7: Aspo – a conglomerate
Aspo – a conglomerate • Cash flow is accumulated in 14 different countries, and from 4 different business operations. • The drop in the oil price reduces Telko's net sales, but also lower the fuel costs of ESL Shipping. • The decrease in the external value of the Russian ruble will weaken the compet
Slide 8: Net sales and operating profit 2010–2014
Net sales and operating profit 2010–2014 Net sales Operating profit 500 476.3 481.6 482.9 50 476.3 395.9 400 40 300 30 200 20 100 10 0 0 8
Slide 9: Net sales / segment 2013–2014
Net sales / segment 2013–2014 MEUR 600 Change % +1% 476.3 482.9 500 +13% 400 -1% 300 200 - 1% 100 +10% 0 2013 2014 ESL Shipping Leipurin Telko Kaukomarkkinat 9
Slide 10: Operating profit / segment
Operating profit / segment MEUR 2014 2013 Change, % ESL Shipping 16.0 7.6 111 Leipurin 4.4 5.2 -15 Telko 9.9 5.8 71 Kaukomarkkinat 0.1 -3.6 103 Other operations -7.0 -4.2 -67 Total 23.4 10.8 117 10
Slide 11: Net sales / market area
Net sales / market area MEUR 2014 2013 Change, % Finland 162.0 156.7 3 Scandinavia 47.9 43.4 10 Baltic countries 55.7 49.8 12 Russia, Ukraine + other CIS 153.0 153.0 0 Other countries 64.3 73.4 -12 Total 482.9 476.3 1 11
Slide 12: Aspo’s countries of operation
Aspon Aspo’s toimipisteet countries of operation 12
Slide 13: Net sales 2010–2014 Russia, Ukraine + other CIS
Net sales 2010–2014 Russia, Ukraine + other CIS countries MEUR 180 157.8 160 153.0 153.0 140 122.6 120 100 88.5 80 60 40 20 0 2010 2011 2012 2013 2014 13
Slide 14: Highlights in Q4
Highlights in Q4 • Net sales increased to EUR 122.6 million (120.3). • Operating profit improved to EUR 5.5 million (3.8), including EUR 1.9 million of non-recurring costs. • Profit for the period amounted to EUR 3.7 million (4.4). • Earnings per share were EUR 0.11 (0.14). • Strong cash flow in the
Slide 15: Groups net sales, quarterly
Groups net sales, quarterly MEUR 140 130.1 120.3 122.6 120 100 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 Q4/14 15
Slide 16: Groups operating profit, quarterly
Groups operating profit, quarterly MEUR 9 8 7 6 5.5 5 4 3.8 3.6 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 Q4/14 16
Slide 17: Net sales and operating profit Q4
Net sales and operating profit Q4 2013/2014 Q1 Q2 Q3 Q4 Cum. Net sales 108.0 122.7 129.6 122.6 482.9 MEUR 112.3 123.6 120.1 120.3 476.3 Operating profit 3.8 6.3 7.8 5.5 23.4 MEUR 0.9 1.5 4.6 38 10.8 17
Slide 18: Aspo’s business operations
Aspo’s business operations
Slide 19: Integral part of Finnish security of supply
Integral part of Finnish security of supply
Slide 20: ESL Shipping Q4/2014
ESL Shipping Q4/2014 • International dry bulk freight rates remained low. • ESL Shipping's transportation volumes on good level at the Baltic Sea. • Transportation in new market areas, such as the Russian Arctic areas. • Unloading and loading services at sea particularly busy. • Net sales increased
Slide 21: ESL Shipping’s net sales and operating profit 2010–2014
ESL Shipping’s net sales and operating profit 2010–2014 Net sales Operating profit MEUR 100 20 93.1 85.2 79.5 80 77.8 16 72.3 60 12 40 8 20 4 0 0 Not including the sales gains of vessels 21
Slide 22: ESL Shipping key figures Q4
ESL Shipping key figures Q4 Q4/14 Q4/13 Change, % Net sales, MEUR 23.2 22.1 5 Operating profit, MEUR 5.2 4.1 27 Personnel 226 210 8 22
Slide 23: The bakery specialist
The bakery specialist 23
Slide 24: Leipurin Q4/2014
Leipurin Q4/2014 • The prices of basic ingredients of foodstuffs decreased significantly in 2014. • Net sales declined to EUR 36.1 million (36.5). • Operating profit decreased to EUR 0.5 million (1.3), including EUR 0.9 million of exchange rate losses. • In Russia, the net sales of bakery raw materi
Slide 25: Leipurin’s net sales and operating profit 2010–2014
Leipurin’s net sales and operating profit 2010–2014 Net sales Operating profit 140 136.3 134.9 7 128.2 131.1 120 6 108.7 100 5 80 4 60 3 40 2 20 1 0 0 25
Slide 26: Leipurin key figures Q4
Leipurin key figures Q4 Q4/14 Q4/13 Change, % Net sales, MEUR 36.1 36.5 -1 Operating profit, MEUR 0.5 1.3 -62 Personnel 297 300 -1 26
Slide 27: Net sales in Russia, Ukraine + other CIS countries Q4/2009–2014
Net sales in Russia, Ukraine + other CIS countries Q4/2009–2014 MEUR 14 13.0 12 11.4 10.8 10.8 10 8 7.0 6 5.4 4 2 0 Q4/09 Q4/10 Q4/11 Q4/12 Q4/13 Q4/14 27
Slide 28: Leading expert in plastic raw materials and chemicals
Leading expert in plastic raw materials and chemicals 28
Slide 29: Telko Q4/2014
Telko Q4/2014 • The prices of raw materials sold fell due to the decline in oil price. • Net sales increased to EUR 55.8 million (53.5). • Operating profit improved to EUR 2.8 million (0.5). • The operating profit improved mostly due to improved profitability in the market area of Russia, Ukraine an
Slide 30: Telko’s net sales and operating profit 2010–2014
Telko’s net sales and operating profit 2010–2014 Net sales Operating profit 250 237.7 15 230.2 226.8 211.6 200 12 175.2 150 9 100 6 50 3 0 0 30
Slide 31: Telko key figures Q4
Telko key figures Q4 Q4/14 Q4/13 Change, % Net sales, MEUR 55.8 53.5 4 Operating profit, MEUR 2.8 0.5 460 Personnel 258 249 4 31
Slide 32: Net sales in Russia, Ukraine and other CIS countries Q4/2009–2014
Net sales in Russia, Ukraine and other CIS countries Q4/2009–2014 MEUR 35 30.8 30 28.3 27.8 26.7 25 20 18.3 15 11.1 10 5 0 Q4/09 Q4/10 Q4/11 Q4/12 Q4/13 Q4/14 32
Slide 33: Expert in energy efficiency
Expert in energy efficiency 33
Slide 34: Kaukomarkkinat Q4/2014
Kaukomarkkinat Q4/2014 • Net sales decreased to EUR 7.5 million (8.2). • Operating profit improved and was EUR -0.2 million (-1.2) including EUR 0.2 million of costs due to the change of the Managing Director. • Profitability improved clearly in Finland, while the foreign operations were unprofitabl
Slide 35: Kaukomarkkinat net sales and operating profit 2010–2014
Kaukomarkkinat net sales and operating profit 2010–2014 Net sales Operating profit 50 5 43.4 4 40.5 40 3 36.0 32.5 2 32.0 30 1 0 20 -1 -2 10 -3 -4 0 -5 35
Slide 36: Kaukomarkkinat key figures Q4
Kaukomarkkinat key figures Q4 Q4/14 Q4/13 Change, % Net sales, MEUR 7.5 8.2 -9 Operating profit, MEUR -0.2 -1.2 83 Personnel 69 80 -14 36
Slide 37: Financing
R ASPO Financing _ Harri Seppala
Slide 38: 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 98,2 101,0 100 80 60 40 32,9 34,4 33,9 32,4 33,2 35,2 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 Q4/14 Equity ratio Gearing 38
Slide 39: Operational cash flow
Operational cash flow MEUR 16 15.8 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 -10.9 -12 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 39
Slide 40: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 160 140 134,4 130,2 131,9 132,5 120 127,3 124,5 118,7 116,9 113,7 111,0 100 105,1 101,5 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 Q4/14 Net debt Cash and cash equivalents 40
Slide 41: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 60 50 40 30 27.0 20 20.0 20.0 19.0 10 5.0 0 2015 2016 2017 2018 2019+ Loans Revolving credit facilities Commercial papers, overdraft facilities and financial leasing agreements not included. 41
Slide 42: Liquidity Q4/2014
Liquidity Q4/2014 MEUR Total In use Revolving credit facilities 60.0 3.0 Commercial paper program 80.0 23.0 Cash and cash equivalents 19.3 • Interest bearing liabilities which will mature within one (1) year total EUR 47.8 million. • Cash + committed unutilized revolving credit facilities total EUR
Slide 43: Financials
R ASPO Financials ~ Arto Meitsalo
Slide 44: Income statement and key figures
Income statement and key figures MEUR 2014 2013 Net sales 482.9 476.3 Depreciations -11.2 -10.8 Operating profit 23.4 10.8 Net financial expenses -4.4 -4.1 Profit before taxes 19.0 6.6 Profit for the period 18.4 8.6 2014 2013 Earnings/share, EUR 0.57 0.28 Equity ratio, % 35.2 34.4 Equity/share, EUR
Slide 45: Balance sheet
Balance sheet MEUR Assets Shareholder’s equity and 350 liabilities 350 298.3 302.5 298.3 302.5 300 300 75.7 86.2 250 250 105.4 110.9 200 47.3 200 47.8 150 150 83.3 93.8 100 100 175.3 168.5 50 50 104.1 103.3 0 0 2014 2013 2014 2013 Non-current assets Shareholder's equity Inventories Long-term liabili
Slide 46: Investments excl. acquisitions
Investments excl. acquisitions MEUR 45 42.7 40 35 30.5 30 25 20 18.7 38.8 13.2 15 26.8 10 16.0 4.9 5 11.1 2.2 0 2010 2011 2012 2013 2014 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 46
Slide 47: Financial target: Return on equity
Financial target Return on equity ROE, % 45 40 35 30 25 20 17.8 15 16.4 15.2 10 11.8 8.9 5 0 2010 2011 2012 2013 2014 Target 47
Slide 48: Financial target: Operating profit %
Financial target Operating profit, % 8 7 6 5 4 3 4.5 4.5 4.8 2 0.5 1 2.3 1.7 0 2010 2011 2012 2013 2014 Exluding non-recurring sales gains and losses Non-recurring sales gains and losses Target 48
Slide 49: Personnel / segment Q4
Personnel / segment Q4 350 297 300 258 250 226 200 150 100 69 50 29 0 Q4/2010 Q4/2011 Q4/2012 Q4/2013 Q4/2014 Tot. 712 Tot. 814 Tot. 871 Tot. 869 Tot. 879 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 49
Slide 50: Personnel / market area Q4
Personnel / market area Q4 500 444 450 400 350 289 300 250 200 150 100 62 65 50 19 0 Q4/2010 Q4/2011 Q4/2012 Q4/2013 Q4/2014 Tot. 712 Tot. 814 Tot. 871 Tot. 869 Tot. 879 Finland Scandinavia Baltic countries Russia, Ukraine + other CIS Other countries 50
Slide 51: Shareholders / allocation
Shareholders / allocation Share Q4/2014 Number of shareholders 9000 Personnel Non-domestic 8150 fund & nominee 8000 0,3% Institutions 7389 registrations 1,7% 26,2% 7000 6497 6183 6000 5760 5161 5000 4000 3000 Management 1,1% 2000 Private investors 1000 55,7% Board 15.0% 0 2009 2010 2011 2012 2013 20
Slide 52: Market value
Market value Share price, EUR Market value, MEUR (incl. own shares) Closing Average 10,00 250 222 8.26 211 198 187 176 8,00 200 6.80 6.39 5.90 6.03 5.69 156 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 53: Dividend proposal 2014
Dividend proposal 2014 • Dividend policy: ” On average, Aspo will pay approximately at least half of its earnings as dividends.” • ”The aim is to increase shareholder value.” • The Board of Directors proposes to the Annual Shareholders' Meeting that EUR 0.40 per share be distributed as dividends. 53
Slide 54: Dividend / earnings
Dividend / earnings Adjusted for rights issue EUR 1,00 0,80 0,60 0.57 0.56 0.57 0.45 0.38 0,40 0.42 0.42 0.40 0.40 0.40 0.40 0.40 0.36 0.31 0.28 0,20 0.21 0,00 2007 2008 2009 2010 2011 2012 2013 2014* Effective dividend yield 6.5 % 10.4 % 7.1 % 5.1 % 6.2 % 6.6 % 3.5 % 7.0 % Dividend (2011 repayment
Slide 55: Outlook for 2015
Outlook for 2015
Slide 56: Outlook for Aspo Group in 2015
Outlook for Aspo Group in 2015 • Good preconditions for improving growth and profitability in the long run. • Great uncertainty related to the Russian, Ukrainian and other CIS markets due to the conflict between Russia and the Ukraine. Economic sanctions continue. • Industrial transport volumes are
Slide 57: Guidance for 2015
Guidance for 2015 ”Aspo expects to reach a good result.” • We expect the operating environment for Aspo's business operations to remain stable. • Risks in the operating environment on the eastern markets have increased. • We will be prepared for notable currency fluctuation, possible problems in the
Slide 58: Next interim report Q1 May 6, 2015
Next interim report Q1 May 6, 2015
Slide 59: Thank you!
Thank you! R ASPO 59