Slide 1: After a solid Q1, Aspo's profitability weakened in Q2
Aspo Group Q2 2023 interim report After a solid Q1, Aspo’s profitability weakened in Q2 CEO Rolf Jansson August 10, 2023 1
Slide 2: After a solid Q1, Aspo's profitability weakened in Q2
After a solid Q1, Aspo’s Q2 2023 Q1-Q2 2023 profitability weakened in Q2 Net sales, continuing operations • Net sales from continuing operations grew 3% 1-6/2023 (3% EUR 132.6 million (136.2) EUR 274.2 million (265.0) decline in Q2/ 2023) Comparable operating profit, • Operating profit from continui
Slide 3: Working hard to reach year 2023 sustainability targets
Working hard to reach year 2023 sustainability targets • Aspo's key target is to reduce emission intensity, CO2 (tn) per net sales (EUR thousand), by 30% by 2025 - Starting level (2020) was 0.44 Emission intensity, LTM - Q2/2023 Rolling 12 months: 0.34 0.34 (0.33 in 2022) - Target level for 2023 is
Slide 4: Flat net sales development from Aspo's continuing operations
Flat net sales development from Aspo’s continuing operations MEUR Net sales Growth % 160 35% • For January-June 2023, net sales from continuing operations 140 30% increased by 3% to EUR 274.2 (265.0) million 120 25% • In Q2 2023, Aspo’s net sales from 100 20% continuing operations decreased by 3% to
Slide 5: Aspo's comparable operating profit from continuing operations at EUR 3.6 million
Aspo’s comparable operating profit from continuing operations at EUR 3.6 million MEUR Comp. oper. profit Comp. oper. profit % 14 14% • In January-June, comparable operating profit from continuing operations was EUR 12.0 (20.4) 12 12% million, and the comparable operating profit rate was 4.4% 10 10%
Slide 6: Group total net sales and comparable operating profit in decline, driven by the Russian exits
Group total net sales and comparable operating profit in decline, driven by the Russian exits MEUR Net sales, Group total MEUR Comparable operating profit, Group total 220 40% 16 16,0 % 200 35% 14 14,0 % 180 30% 25% 12 12,0 % 160 20% 140 10 10,0 % 15% 120 10% 8 8,0 % 100 5% 80 6 6,0 % 0% 60 -5% 4 4,
Slide 7: Items affecting comparability 1-6/2023 totaled EUR -8.3 million
Items affecting comparability 1-6/2023 totaled EUR -8.3 million, primarily related to Telko’s exit from Russia Operating profit bridge, continuing operations 1-6/2023 • Items affecting comparability totaled EUR -8.8 (-2.4) million in Q2 MEUR - EUR -0.8 million concerning continued operations 14 • Te
Slide 8: Solid cash flow, strengthened by sales of Kobia properties
Solid cash flow, strengthened by sales of Kobia properties MEUR Cash flow development, Group total 70 • Net cash from operating activities was EUR 18.7 million (34.3) 60 - Cash flow of all businesses was positive, and the decrease compared to the 50 comparative period came from ESL Shipping - The im
Slide 9: Return on equity adjusted by items affecting comparability at 14.3%
Return on equity adjusted by items affecting comparability at 14.3% ROE % Reported return on equity, Group total 25 • Return on equity adjusted by the items affecting comparability was Target >20% 14.3% (32.3%) 20 • Reported ROE was 2.2% (23.4%). ROE was on modest level 15 especially due to the loss
Slide 10: Aspo is in a good position for future sustainable value creation
Aspo is in a good position for future sustainable value creation • The war in Ukraine and exits of selected Eastern markets have caused a decline in Aspo’s net sales and profitability. The Russian exits are almost completed, which frees-up resources to pursue Aspo’s western focused strategy • ESL Sh
Slide 11: ESL Shipping suffered from low spot market demand
ESL Shipping suffered from low spot market demand Aspo Q2 2023 August 10, 2023 11
Slide 12: Low spot market demand and fuel prices caused net sales decline
Low spot market demand and fuel prices caused net sales decline • In January-June, net sales decreased by 17% from the MEUR Net sales Growth % comparative period, amounting to EUR 96.7 (117.1) million 80 50% • In Q2, ESL Shipping’s net sales decreased by 27% from the comparative period to EUR 44.0 (
Slide 13: ESL Shipping will benefit from the green transition in the medium and long term
ESL Shipping will benefit from the green transition in the medium and long term • The green transition is expected to substantially enlarge ESL Shipping’s market • The investment into twelve green coaster is progressing as planned. A total of six vessels are already under construction and the first
Slide 14: The Baltic Dry index has declined since May 2023 to a historically low level
The Baltic Dry index has declined since May 2023 to a historically low level Baltic dry index Baltic supramax index Source: Baltic dry Index, banchero costa network July 21, 2023. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. The Baltic Dry Index t
Slide 15: Poor profitability due to market softness, supramax losses, dockings, and expensive time charted coasters
Poor profitability due to market softness, supramax losses, dockings, and expensive time charted coasters Comp. oper. profit Comp. oper. profit % MEUR • In January-June, the comparable operating profit 12 24% decreased to EUR 9.3 (17.1) million and the 11 22% comparable operating profit rate was 9.6
Slide 16: Telko impacted by declining market prices in volume plastics
Telko impacted by declining market prices in volume plastics Aspo Q2 2023 August 10, 2023 16
Slide 17: Net sales growth primarily driven by acquisitions
Net sales growth primarily driven by acquisitions • In January-June, net sales increased by 5% from the MEUR Net sales Growth % comparative period, amounting to EUR 108.5 (103.5) million 70 30% • In Q2, Telko’s net sales increased by 2% from the comparative period to EUR 54.2 (52.9) million 60 25% -
Slide 18: Declining prices in volume plastics weakened profitability
Declining prices in volume plastics weakened profitability • In January-June, the comparable operating profit decreased MEUR Comp. oper. profit Comp. oper. profit % to EUR 3.6 (6.5) million and the comparable operating profit rate was 3.3% (6.3%) 5 10% • In Q2, the comparable operating profit decrea
Slide 19: Telko completed the sale of its Russian operations in April 2023
Telko completed the sale of its Russian operations in April 2023 • The sale of Telko’s Russian business was an important milestone for the whole Group and it frees up time and resources to seek growth opportunities in the Western markets • The Russian subsidiary Telko OOO was sold to Russian industr
Slide 20: Leipurin continues to improve its financial performance
Leipurin continues to improve its financial performance Aspo Q2 2023 August 10, 2023 20
Slide 21: Strong growth thanks to Kobia and inflation
Strong growth thanks to Kobia and inflation MEUR Net sales Growth % • In January-June, net sales increased by 55% from the comparative 45 70% period, amounting to EUR 69.0 (44.4) million 40 60% • In Q2, Leipurin’s net sales increased by 50% from the comparative period, amounting to EUR 34.4 (23.0) m
Slide 22: Leipurin's profitability continued to improve
Leipurin’s profitability continued to improve MEUR Comp. oper. Profit Comp. oper. profit % • In January-June, the comparable operating profit 1,2 6% increased to EUR 2.1 (0.1) million and the comparable operating profit rate was 3.0% (0.2%) Target 5 % 1,0 5% • In Q2, the comparable operating profit
Slide 23: Sale and lease back of all Kobia properties successfully completed with positive cash flow impact
Sale and lease back of all Kobia properties successfully completed with positive cash flow impact • The acquisition of Kobia has proven to be successful in terms of synergy potential, and in particular after the sale and lease back of the three Swedish properties • The aggregated sales price of the
Slide 24: Leipurin exit from Russia, Belarus and Kazakhstan is progressing
Leipurin exit from Russia, Belarus and Kazakhstan is progressing • Aspo Group’s subsidiary Leipurin signed a binding framework agreement in January 2023 according to which it will sell the share capital of its Russian, Belarusian and Kazakh subsidiaries for a sales price of EUR 8.4 million to Mr. Ti
Slide 25: Discontinued operations
Discontinued operations Aspo Q2 2023 August 10, 2023 25
Slide 26: Net sales and profitability of the discontinued operations trend towards zero
Net sales and profitability of the discontinued operations trend towards zero MEUR Net sales Growth % MEUR Comp. oper. Profit Comp. oper. profit % 40 70% 7 25% 35 50% 6 20% 30 30% 5 15% 25 10% 4 10% 20 -10% 3 5% 15 -30% 2 0% 10 -50% 1 -5% 5 -70% 0 -10% 0 -90% -1 -15% Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2
Slide 27: Aspo's financial position
Aspo’s financial position Aspo Q2 2023 August 10, 2023 27
Slide 28: Aspo's balance sheet remained solid
Aspo’s balance sheet remained solid Equity ratio % Gearing % 40 200 • Gearing increased to Gearing target <130 % 114.6% (Dec 31, 2022: 35 180 108.4%) 30 160 • The Group’s equity ratio at the end of the review period was 34.8% (Dec 25 140 31, 2022: 34.7%) 20 120 15 100 10 80 5 60 0 40 Q1/21 Q2/21 Q3/
Slide 29: Strong liquidity and balanced maturity structure
Strong liquidity and balanced maturity structure Interest-bearing debt incl. lease Maturity profile (EUR million) In addition: Svenska Skeppshypotek EUR 32.2 million liabilities (EUR million) Gross interest-bearing debt total EUR 188.1 100 (Dec 31, 2022: 189.2) million 21 90 15 80 Net interest-beari
Slide 30: Summary
Summary • Aspo continues to execute its strategy. As key priorities we: - are evaluating measures to accelerate ESL Shipping’s low-carbon growth strategy - aim to close the transaction for exiting Leipurin East - continue to screen acquisition opportunities to achieve growth and in parallel search f
Slide 31: Q&A
Q&A 31