Slide 1: Aspo Group Q2 August 24, 2010
Aspo Group Q2 August 24, 2010 CEO Aki Ojanen CFO Arto Meitsalo CTO Harri Seppälä
Slide 2: Growth in Group net sales
Growth in Group net sales MEUR 120 99.2 100 80.9 80 60 40 20 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 2
Slide 3: Net sales Q1-Q2
Net sales Q1-Q2 MEUR Change % 200 +15 % 182.6 180 -31% 159.3 160 140 +33% 120 100 80 60 +7% 40 20 +20% 0 Q1-Q2/2009 Q1-Q2/2010 ESL Shipping Leipurin Telko Kaukomarkkinat Other operations 3
Slide 4: Growth in Group operating profit
Growth in Group operating profit MEUR 6 5 4.3 4 3 1.9 2 1 0 Q1/09 Q2/09* Q3/09** Q4/09 Q1/10 Q2/10 * Including a total of EUR 2.4 million of non-recurring items ** Including a total of EUR 3.2 million of non-recurring items 4
Slide 5: Operating profit
Operating profit MEUR Q2/10 Q2/09 Change ESL Shipping 3.4 5.2 -1.8 Leipurin 0.6 1.2 -0.6 Telko 1.7 -1.8 3.5 Kaukomarkkinat -0.4 -0.9 0.5 Other operations -1.0 -1.8 0.8 Total 4.3 1.9 2.4 5
Slide 6: Net sales and operating profit
Net sales and operating profit 2009/2010 Q1 Q2 Q3 Q4 Cum. Net sales 83.4 99.2 182.6 MEUR 78.4 80.9 80.0 90.1 329.4 Operating profit 2.1 4.3 6.4 MEUR 3.8 1.9 5.6 4.0 15.3 6
Slide 7: Net sales / market area
Net sales / market area MEUR Q2/10 Q2/09 Change Finland 40.3 38.2 2.1 Scandinavia 14.7 6.4 8.3 Baltic countries 10.5 10.5 0.0 Russia + other CIS 22.3 12.6 9.7 Other countries 11.4 13.2 -1.8 Total 99.2 80.9 18.3 7
Slide 8: Net sales Russia, other CIS countries and Ukraine
Net sales Russia, other CIS countries and Ukraine Including ESL Shipping’s exports from Russia MEUR 35 28.7 30 25.3 25 20 15 10 5 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 8
Slide 9: Main events Q2
Main events Q2 • ESL Shipping ordered two supramax vessels. The vessels will be in use during the first half of 2012. • Growth in Russia, other CIS countries and Ukraine increased the Group's net sales rapidly and improved profitability. • The Group's administrative costs have decreased even faster
Slide 10: ESL Shipping
ESL Shipping Integral part of Finnish security of supply 10
Slide 11: ESL Shipping key figures
ESL Shipping key figures Q2/10 Q2/09 Change Net sales, MEUR 21.7 15.1 6.6 Operating profit, MEUR 3.4 5.2 -1.8 Personnel 195 215 -20 11
Slide 12: Cargo transported
Cargo transported Million tons Change % 4 + 36% 3.4 + 0% 3 2.5 2 - 31% 1 + 118% 0 Q2/2009 Q2/2010 Steel industry Energy industry Other 12
Slide 13: ESL Shipping Q2 2010
ESL Shipping Q2 2010 • International cargo prices decreased. • Most vessels running with long-term contracts. The drop in cargo prices did not affect ESL Shipping's result. • The comparable operating profit grew to EUR 3.4 million (2.3). • Cargo volumes for the steel industry increased. Coal transpo
Slide 14: Leipurin
Leipurin Expert in flavors and structures 14
Slide 15: Leipurin key figures
Leipurin key figures Q2/10 Q2/09 Change Net sales, MEUR 26.4 26.7 -0.3 Operating profit, MEUR 0.6 1.2 -0.6 Personnel 222 193 29 15
Slide 16: Net sales in Russia + other CIS countries growing
Net sales in Russia + other CIS countries growing MEUR 6 5.5 5 4.9 4.7 4 3.8 3.9 3 2 1 0 Q2/06 Q2/07 Q2/08 Q2/09 Q2/10 Leipurin has been part of Aspo Group as of 5/2008 16
Slide 17: Leipurin Q2 2010
Leipurin Q2 2010 • Food prices have increased. In the summer the price of grain made a considerable upturn. • Net sales and profitability of bakery raw materials developed well compared to the corresponding period last year. • The low order book for bakery lines decreased net sales growth and profit
Slide 18: Telko
Telko Leading expert in chemicals and plastic raw materials 18
Slide 19: Telko key figures
Telko key figures Q2/10 Q2/09 Change Net sales, MEUR 45.2 31.0 14.2 Operating profit, MEUR 1.7 -1.8 3.5 Personnel 198 225 -27 19
Slide 20: Net sales in Russia + other CIS countries growing
Net sales in Russia + other CIS countries growing MEUR 18 16 16.7 14 12 11.5 10 9.0 8 7.1 6 4 4.3 2 0 Q2/06 Q2/07 Q2/08 Q2/09 Q2/10 20
Slide 21: Telko Q2 2010
Telko Q2 2010 • The prices of sold raw materials increased. • Volume growth in all market areas. The strongest growth was seen in chemicals in Russia and plastics in Ukraine. • Scandinavian sales grew compared to the corresponding period last year. • The reorganization has decreased fixed costs by a
Slide 22: Kaukomarkkinat
Kaukomarkkinat Expert in energy efficiency 22
Slide 23: Kaukomarkkinat key figures
Kaukomarkkinat key figures Q2/10 Q2/09 Change Net sales, MEUR 5.9 7.9 -2.0 Operating profit, MEUR -0.4 -0.9 0.5 Personnel 88 97 -9 23
Slide 24: Kaukomarkkinat Q2 2010
Kaukomarkkinat Q2 2010 • Net sales decreased and the operating profit was negative. • Project deliveries did not materialize, deliveries will focus on the second half of the year. The order book exceeds the level of the corresponding period last year. • The overall market for energy efficiency produ
Slide 25: Financing
Financing Harri Seppälä
Slide 26: Equity ratio and gearing
Equity ratio and gearing % 200 180 160 142.2 140 136.0 124.7 120 113.2 100 92.1 87.9 80 60 40 34.6 36.2 32.4 30.2 27.8 29.4 20 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Equity ratio Gearing 26
Slide 27: Free cash flow
Free cash flow Cumulative MEUR 40 35 20.9 30 25 20 9.8 15 13.0 10 8.6 5 6.8 6.0 0 2.0 -1.5 -0.9 -10.4 -4.3 -5 -0.1 -10 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Operational cash flow Cash flow from investments 27
Slide 28: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 100 90 80 85.0 77.6 78.4 70 71.7 60 63.2 58.8 50 40 30 20 10 0 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Net debt Cash and cash equivalents 28
Slide 29: Maturity of long-term loan portfolio
Maturity of long-term loan portfolio MEUR 30 25 20 15 10 5 0 2010 2011 2012 2013 2014 2015+ Loans Pension loans Capital loans Revolving credit facilities Commercial papers, overdraft facilities, and lease agreements not included. 29
Slide 30: Financing Q2 2010
Financing Q2 2010 MEUR Total In use Revolving credit facilities 50.0 20.0 CP program 50.0 0.0 Cash and cash equivalents 10.7 During reporting period: A EUR 20 million revolving credit facility agreement signed with Nordea Bank. Replacing previous agreement maturing in August 2010. Agreement is valid
Slide 31: Financials
Financials Arto Meitsalo
Slide 32: Income statement and key figures Q1–Q2
Income statement and key figures Q1–Q2 MEUR 2010 2009 Net sales 182.6 159.3 Depreciations -4.1 -4.5 Operating profit 6.4 5.7 Net financial expenses -1.8 -2.3 Profit before taxes 4.5 3.4 Profit for the period 3.4 2.6 2010 2009 Earnings/share, EUR 0.13 0.10 Equity ratio, % 30.2 29.4 Equity/share, EUR
Slide 33: Balance sheet
Balance sheet Shareholders’ equity & Assets liabilities 250 250 208.9 208.9 204.8 204.8 200 200 50.2 57.1 62.3 89.5 150 150 26.3 33.9 100 100 82.7 56.6 128.3 117.9 50 50 59.8 62.8 0 0 Q2/2009 Q2/2010 Q2/2009 Q2/2010 Non-current assets Inventories Shareholders' equity Long-term liabilities Cash and r
Slide 34: Financial targets: ROI and ROE
Financial targets Return on investment, return on equity Group on the whole ROI, % ROE, % 45 45 40.9 40 37.2 40 35 35 30 30 25 25 20 20 15 14.3 12.2 15 9.1 10.4 10 8.9 8.4 8.4 7.5 10 5 5 0 0 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Target 34
Slide 35: Financial targets: Operating profit
Financial targets Operating profit, % 11 10 9 8 7 7.6 6 5 4.0 4 3 5,1 4.8 2 4.4 4,3 3.9 3.4 3.0 3.0 2.5 1 1.8 0 -0.7 -1 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Excluding non-recurring sales gains and losses Non-recurring sales gains and losses Target 35
Slide 36: Financial targets: Dividend / earnings
Financial targets Dividend / earnings EUR 1.00 0.80 0.60 0.59 0.60 0.45 0.40 0.42 0.42 0.42 0,40 0.41 0.32 0.33 0.20 0.13 0.00 2005 2006 2007 2008 2009 Q2/2010 Dividend yield 5.80% 6.00% 6.50% 10.40% 7.10% Dividend Earnings per share (EPS) 36
Slide 37: Personnel
Personnel Group on the whole 1181 1200 1100 1000 900 800 761 718 695 717 700 600 500 400 300 200 100 0 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 37
Slide 38: Shareholders / Allocation
Shareholders / Allocation Number of shareholders Share Q2/2010 Personnel 6000 Non- 0.3% Institutions 5446 domestic 26.1% 2.8% 5000 4000 3000 2000 1000 Manage- 0 ment Private investors Board 0.8% 61.8% members 8.2% 38
Slide 39: Market value
Market value Share price, EUR Market value, MEUR (incl. own shares) Closing price Average price 10.00 250 8.00 200 177 180 6.80 6.80 170 6.44 156 5.90 6.00 150 106 4.03 4.00 100 2.00 50 0.00 0 39
Slide 40: Outlook for 2010
Outlook for 2010
Slide 41: Expected in Aspo Group in 2010
Expected in Aspo Group in 2010 • Net sales and profitability growing. • Comparable net sales is estimated to improve considerably during the second half of the year. • Growth in the East will continue by establishing new companies in Belarus and Kazakhstan. New offices will be opened in at least two
Slide 42: Guidance per August 24, 2010
Guidance per August 24, 2010 ¾Aspo maintains its guidance for 2010 unchanged. • Aspo will increase its net sales and the Group has the preconditions to improve its earnings per share. • Operating profit for 2009 included non-recurring sales gains and losses of EUR 5.5 million. 42
Slide 43: Next Aspo interim report Q3 on October 26, 2010
Next Aspo interim report Q3 on October 26, 2010 Thank you!