Slide 1: Aspo Q2
Aspo Q2 August 15, 2017 CEO Aki Ojanen Group Treasurer Harri Seppälä
Slide 2: Net sales and operating profit increased in Q2
Net sales and operating profit increased in Q2 Net sales increased to EUR Operating profit improved Profit for the period was 123.8 million (116.2). to EUR 5.1 million (4.8). EUR 4.1 million (3.4). In H1 earnings per share In H1 net cash from Aspo specifies its increased by 31% and were operating ac
Slide 3: Operating profit H1 increased by 17%
Operating profit H1 increased by 17% Operating profit MEUR In H1, operating profit 24 improved significantly and 20.6 20.4 was EUR 9.5 million (8.1). 20 Q1 In Q2, operating profit 16 increased by 6%. 14.4 14.1 Q1-Q2 12 Q1-Q3 9.5 H1 is usually lower than H2 8.1 8 7.1 Q1-Q4 due to customers’ cycles in
Slide 4: Long-term financial targets: Operating profit %
Long-term financial targets Operating profit, % % In H1, operating profit rate 8 increased to 3.9% (3.8). 7 Q1 6 Q1-Q2 5 4.4 4.6 4.5 4.2 Q1-Q3 4 3.8 3.7 3.9 3.3 3.4 2.9 Q1-Q4 The target level is 7% with 3 the current structure by 2 2020. 1 0 2015 2016 2017 Q2 August 15, 2017 4 The target level is in
Slide 5: Long-term financial targets: Return on equity
Long-term financial targets Return on equity, (ROE) % In H1, ROE improved 28 26.2 significantly from the 24 comparative period and was 20.1 20.8 Q1 14.6% (11.0). 20 19.1 Q1-Q2 16 14.6 14.6 13.4 13.4 Q1-Q3 12 11.0 The target level is on 8.9 Q1-Q4 average over 20% by 2020. 8 4 0 2015 2016 2017 Q2 Augu
Slide 6: Long-term financial targets: Gearing
Long-term financial targets Gearing % In H1, gearing decreased to 140 114% (115). 119 115 In Q2, equity was 120 114 109 100 105 101 104 Q1 decreased by a dividend of 100 94 90 Q1-Q2 EUR 12.9 million, of which 80 EUR 6.4 million was paid. Q1-Q3 60 The target level is up to Q1-Q4 100% by 2020. 40 20 0
Slide 7: Net sales by quarter
Net sales by quarter Net sales by quarter MEUR In Q2, net sales increased 140 125 124 by 7%. 122 119 120 116 118 ESL Shipping, Telko and 110 112 102 Q1 Leipurin increased their net 99 100 Q2 sales. 80 Q3 60 Q4 All market areas increased 40 their net sales. Strongest growth in Finland 20 and in Balti
Slide 8: Net sales by segment
Net sales by segment MEUR 70 Distribution of net sales, Q2/2017 60 50 ESL Shipping 16% Leipurin 24% 40 Telko 53% 30 Kauko 7% 20 10 0 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 ESL Shipping 16.7 17.9 20.6 18.9 19.5 Leipurin 28.8 27.0 30.7 29.4 30.1 Telko 62.2 63.8 64.9 63.6 65.7 Kauko 8.5 9.5 8.3 7.1 8.5 Q2 Augus
Slide 9: Net sales by market area
Net sales by market area MEUR 45 Distribution of net sales, Q2/2017 40 35 Finland 33% 30 Scandinavia 11% 25 Baltic countries 11% 20 Russia, Ukraine and 32% 15 other CIS countries 10 Other countries 13% 5 0 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Finland 37.7 38.9 38.7 40.2 40.5 Scandinavia 12.6 12.0 12.1 13.0
Slide 10: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR In Q2, net sales in eastern 45 42.0 markets increased from the 38.1 38.9 39.3 40.1 comparative period to EUR 40 35.0 34.7 Q1 40.1 million (38.1). 35 32.2 30 Q2 26.4 26.6 25 Q3 20 Q4 Net sales growth in eastern 15 markets: 10 Leipurin raw materia
Slide 11: ESL Shipping
ESL Shipping Leading marine logistics provider for bulk cargo Q2 August 15, 2017 11
Slide 12: ESL Shipping
ESL Shipping Q2 International freight rates decreased in Q2. Net sales increased by 17% to EUR 19.5 million (16.7). Profitability is based on special expertise Net sales grew expecially as a result of and unique services. Supramax vessels but also the contract coverage and more efficient operating o
Slide 13: Ms Viikki
Ms Viikki Q2 August 15, 2017 13
Slide 14: ESL Shipping, key figures: Net sales
ESL Shipping, key figures Net sales MEUR Strong net sales growth 25 continued. 20.6 19.9 19.9 20 18.9 19.5 18.2 18.2 17.9 Q1 16.2 16.7 Q2 15 Q3 10 Q4 Industrial demand increased from the 5 comparative period. Transportation volumes 0 increased in all customer 2015 2016 2017 segments. Q2 August 15, 2
Slide 15: ESL Shipping, key figures: Operating profit
ESL Shipping, key figures Operating profit MEUR In Q2, operating profit was 5 EUR 3.1 million (2.9). 4.5 4.4 4.5 4.1 4 Q1 3.5 3.3 3.4 2.9 3.0 3.1 Q2 3 2.5 Q3 2.5 2.2 2 Q4 Supramax vessels operated clearly profitably despite 1.5 the dockage of one of the 1 two vessels. 0.5 0 2015 2016 2017 Q2 August
Slide 16: Baltic Dry Index 2013-2017
Baltic Dry Index 2013‒2017 Source: Bloomberg Q2 August 15, 2017 16
Slide 17: Leipurin
Leipurin From breads and recipes to a comprehensive selection Q2 August 15, 2017 17
Slide 18: Leipurin
Leipurin Q2 The prices of raw materials important to Net sales increased by 5% to EUR 30.1 Leipurin increased slightly from the million (28.8). comparative period. In Russia, the prices of bread and bakery Net sales increased especially in eastern products increased by approximately 4%. markets and
Slide 19: Leipurin, key figures: Net sales
Leipurin, key figures Net sales MEUR In Q2, net sales increased 35 31.5 to EUR 30.1 million (28.8). 30.7 30 29.7 28.8 29.4 30.1 28.3 28.3 27.0 26.2 Q1 25 Q2 20 Q3 15 Net sales of machine Q4 operations increased by 10 30%. 5 0 2015 2016 2017 Q2 August 15, 2017 19
Slide 20: Leipurin, key figures: Operating profit
Leipurin, key figures Operating profit MEUR In Q2, operating profit was 0.9 0.8 EUR 0.6 million (0.4). 0.8 0.7 0.7 Operating profit of machine 0.7 Q1 operations turned to be 0.6 0.6 Q2 positive. 0.5 0.5 0.5 0.4 0.4 0.4 0.4 Q3 0.4 Net sales are expeced to Q4 0.3 increase and profitability to 0.2 impr
Slide 21: Net sales in Russia, Ukraine and other CIS countries
Net sales in Russia, Ukraine and other CIS countries Net sales in the market area Net sales of the Russian company MEUR MRUB 12.0 700 9.6 600 573 10.0 9.1 534 8.3 8.1 Q1 493 Q1 8.0 500 8.0 7.7 403 435 448 456452 7.1 7.2 Q2 404 404 Q2 6.3 400 6.1 6.0 Q3 Q3 300 Q4 Q4 4.0 200 2.0 100 0.0 0 2015 2016 20
Slide 22: Telko
Telko Raw material solutions for the industry Q2 August 15, 2017 22
Slide 23: Telko
Telko Q2 Market environment has improved in the Net sales increased by 6% to EUR 65.7 countries where Telko operates. million (62.2). Growth was increased by stronger Russian In Finland, a prominent turn of economic ruble and weakened by decreasing sales trends. Signs of recovery in Russia. prices.
Slide 24: Telko, key figures: Net sales
Telko, key figures Net sales MEUR In Q2, net sales increased 70.0 62.2 63.8 64.9 63.6 65.7 to EUR 65.7 million (62.2). 60.0 55.2 56.5 53.6 Q1 50.0 50.0 49.4 Net sales by quarter record Q2 high. 40.0 Q3 30.0 Q4 Net sales of chemicals increased while net sales of 20.0 plastics decreased. Eastern 10.0
Slide 25: Telko, key figures: Operating profit
Telko, key figures Operating profit MEUR Operating profit was EUR 3.5 3.2 2.4 million (3.0). 3.0 3.0 3.0 Q1 2.5 2.4 Operating profit rate 2.5 2.3 2.3 2.3 2.3 Q2 decreased to 3.7 % (4.8). 2.0 1.9 Q3 1.5 Q4 The stronger value of the Russian ruble increased 1.0 the euro-denominated fixed 0.5 costs of t
Slide 26: Net sales in Russia, Ukraine and other CIS countries
Net sales in Russia, Ukraine and other CIS countries Net sales in the market area Net sales of the Russian company MEUR MRUB 35.0 1400 31.4 31.5 30.4 30.0 28.6 28.7 1200 1155 27.0 24.2 25.0 Q1 1005 982 25.0 1000 946 Q1 870 864 888 19.4 Q2 Q2 20.0 19.3 800 Q3 691706 680 Q3 15.0 600 Q4 Q4 10.0 400 5.0
Slide 27: Kauko
Kauko Best tools for mobile knowledge work Q2 August 15, 2017 27
Slide 28: Kauko
Kauko Q2 Net sales were EUR 8.5 million (8.5) and Positive operating profit EUR 0.1 million totally generated from Finland (project (-0.3). deliveries to China in the comparative Good progress especially in mobile period). knowledge work and solar energy. In mobile knowledge work first customer New
Slide 29: Kauko, key figures: Net sales
Kauko, key figures Net sales Net sales were EUR 8.5 MEUR million (8.5). 18 17.1 16 Q1 14 12 Q2 10 9.5 Q3 8.5 8.3 8.5 Net sales of mobile 8 7.1 6.8 7.1 6.7 Q4 knowledge work and energy 6 5.5 operations increased. In Q2, 4 no revenue was recognized 2 from project deliveries to 0 China, unlike in the 2
Slide 30: Kauko, key figures: Operating profit
Kauko, key figures Operating profit Operating profit was EUR MEUR 0.1 million (-0.3). In H1, 1.0 0.6 operating profit without the 0.5 0.5 impairment loss of 0.1 0.1 0.0 0.1 0.0 Q1 receivables was EUR -0.1 Q2 million (-0.6). -0.5 -0.3 -0.3 -0.5 -1.0 Q3 Mobile knowledge work and -1.5 Q4 energy operati
Slide 31: Financials and financing
Financials and financing Harri Seppälä Q2 August 15, 2017 31
Slide 32: Income statement
Income statement MEUR Q1-Q2/2017 Q1-Q2/2016 Net sales 242.8 214.7 Ebitda rate was 6.4% (6.4). Ebitda 15.5 13.8 Operating profit rate Depreciation, amortization and -6.0 -5.7 increased to 3.9% (3.8). impairment losses Earnings per share Operating profit 9.5 8.1 improved significantly to Financial inc
Slide 33: Net cash from operating activities
Net cash from operating activities MEUR 30.0 In H1, net cash from 25.0 25.0 operating activities increased 20.0 from the comparative period 16.2 Q1 to EUR 3.5 million (-11.0). 15.0 10.7 Q1-Q2 Change in working capital 10.0 was EUR -9.4 million (-22.7). 5.0 3.5 Q1-Q3 0.0 Q1-Q4 In H1, net cash from op
Slide 34: Equity ratio and gearing
Equity ratio and gearing % % 39 140 Equity was decreased by a 38 dividend of EUR 12.9 120 37 million. In Q2, a dividend of 100 36 EUR 6.4 millon was paid. 35 80 Advance payments for 34 60 vessels of appr. EUR 9 33 million was made in H1. 40 32 Gearing was 114% and 20 31 equity ratio 33%. 30 0 Q1/15
Slide 35: Structure of liabilities
Structure of liabilities Interest bearing liabilities on Interest bearing liabilities on June 30, 2016, EUR 140 million June 30, 2017, EUR 137 million 6% 6% 8% 8% Loans Loans 6% 6% Commercial papers Commercial papers TyEL pension loan TyEL pension loan 14% Bond Bond 66% Others Others 80% Q2 15.8.201
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 In Q2, the average interest rate of interest bearing 60.0 1.4 liabilities was 1.8% (12/2016: 50.0 1.8). 25.0 TyEL pension loan 40.0 1.4 Bond Hybrid bond (call) 30.0 20.0 1.4 Revolving credit facilities A revolving credit facility of 1.4 Loans 20.0 1.
Slide 37: Personnel, June 30, total 917
Personnel, June 30, total 917 Personnel by segment Personnel by geographical area 350 500 323 441 450 300 286 400 250 337 350 236 300 200 250 150 200 100 150 100 72 47 50 25 50 48 19 0 0 2013 2014 2015 2016 30.6.2017 2013 2014 2015 2016 30.6.2017 ESL Shipping Leipurin Telko Finland Scandinavia Kauko
Slide 38: General market outlook for 2017
General market outlook for 2017 • General uncertainty in the markets has decreased. • Industrial production is expected to increase in the main The market situation has market areas of Aspo. improved significantly. • Raw material prices will remain low. • Political risks may weaken free trade. Indus
Slide 39: Aspo specifies its guidance
Aspo specifies its guidance New guidance: Aspo’s operating profit will be EUR 23-26 million (20.4) in 2017. Previous guidance: Aspo’s operating profit will be EUR 22-27 million (20.4) in 2017. Q2 August 15, 2017 40