Slide 1: Aspo Group Q3 October 26, 2010
Aspo Group Q3 October 26, 2010 CEO Aki Ojanen CFO Arto Meitsalo CTO Harri Seppälä
Slide 2: Significant growth in Group net sales
Significant growth in Group net sales MEUR 104.2 2
Slide 3: Net sales Q1-Q3
Net sales Q1-Q3 MEUR Change % +20% 286.8 239.3 -13% +34% +9% +29% 3
Slide 4: Growth in Group operating profit
Growth in Group operating profit MEUR 6.0 5.6 * Including a total of EUR 2.4 million of non-recurring sales gains and losses ** Including a total of EUR 3.2 million of non-recurring sales gain 4
Slide 5: Operating profit
Operating profit MEUR Q3/10 Q3/09 Change ESL Shipping 3.7 1.8 1.9 Leipurin 0.9 0.6 0.3 Telko 1.8 4.9 -3.1 Kaukomarkkinat 0.6 -0.1 0.7 Other operations -1.0 -1.6 0.6 Total 6.0 5.6 0.4 5
Slide 6: Net sales and operating profit
Net sales and operating profit 2009/2010 Q1 Q2 Q3 Q4 Cum. Net sales 83.4 99.2 104.2 286.8 MEUR 78.4 80.9 80.0 90.1 329.4 Operating profit 2.1 4.3 6.0 12.4 MEUR 3.8 1.9 5.6 4.0 15.3 6
Slide 7: Net sales / market area
Net sales / market area MEUR Q3/10 Q3/09 Change Finland 44.6 37.7 6.9 Scandinavia 13.6 7.0 6.6 Baltic countries 11.7 9.8 1.9 Russia + other CIS 24.0 14.0 10.0 Other countries 10.3 11.5 -1.2 Total 104.2 80.0 24.2 7
Slide 8: Net sales
Net sales Russia, other CIS countries and Ukraine Including ESL Shipping’s exports from Russia MEUR 30.0 20.4 8
Slide 9: Significant events Q3
Significant events Q3 • After reviewing the profit figures for August, Aspo improved its outlook for 2010. • Growth in Russia, the other CIS countries, and Ukraine rapidly increased the Group’s net sales and improved profitability. • Profit development was favorable in all market areas and business
Slide 10: ESL Shipping
ESL Shipping Integral part of Finnish security of supply 10
Slide 11: ESL Shipping key figures
ESL Shipping key figures Q3/10 Q3/09 Change Net sales, MEUR 20.6 13.8 6.8 Operating profit, MEUR 3.7 1.8 1.9 Personnel 197 201 -4 11
Slide 12: ESL Shipping Q3 2010
ESL Shipping Q3 2010 • The cargo income of ESL Shipping’s vessels remained on a good level. Operations were successful. • Operations are mainly based on long-term customer contracts. • Operating profit grew to EUR 3.7 million (1.8). • Steel industry transports increased. Coal transports from Russia
Slide 13: Cargo transported
Cargo transported Million tons Change % + 36% 3.4 + 100% 2.5 - 10% + 64% 13
Slide 14: Leipurin
Leipurin Expert in flavors and structures 14
Slide 15: Leipurin key figures
Leipurin key figures Q3/10 Q3/09 Change Net sales, MEUR 26.5 23.4 3.1 Operating profit, MEUR 0.9 0.6 0.3 Personnel 217 191 26 15
Slide 16: Leipurin Q3 2010
Leipurin Q3 2010 • The increase in food prices stabilized. • Organic growth continued in Russia and Finland. • The net sales and profitability of bakery raw materials developed well in the review period as well as cumulatively in relation to the previous year. • No bakery line deliveries were recogn
Slide 17: Net sales in Russia + other CIS countries growing
Net sales in Russia + other CIS countries growing MEUR Leipurin has been part of Aspo Group as of 5/2008 17
Slide 18: Telko
Telko Leading expert in chemicals and plastic raw materials 18
Slide 19: Telko key figures
Telko key figures Q3/10 Q3/09 Change Net sales, MEUR 47.6 35.3 12.3 Operating profit, MEUR 1.8 4.9 -3.1 Personnel 202 202 0 19
Slide 20: Telko Q3 2010
Telko Q3 2010 • The prices for sold raw materials leveled off and decreased in part. • Comparable operating profit increased. The comparison period July–September 2009 included a non-recurring sales gain of EUR 3.2 million. • One half of the strong growth in net sales was attributable to higher pric
Slide 21: Net sales in Russia + other CIS countries growing
Net sales in Russia + other CIS countries growing MEUR 21
Slide 22: Kaukomarkkinat
Kaukomarkkinat Expert in energy efficiency 22
Slide 23: Kaukomarkkinat key figures
Kaukomarkkinat key figures Q3/10 Q3/09 Change Net sales, MEUR 9.5 7.4 2.1 Operating profit, MEUR 0.6 -0.1 0.7 Personnel 90 88 2 23
Slide 24: Kaukomarkkinat Q3 2010
Kaukomarkkinat Q3 2010 • Net sales grew and operating profit improved to EUR 0.6 million (-0.1). • No project deliveries in China were recognized as income; deliveries will be made in the fourth quarter. Order book at a higher level than in the corresponding period last year. • Good net sales and op
Slide 25: Financing
Financing Harri Seppälä
Slide 26: Equity ratio and gearing
Equity ratio and gearing % 200 180 160 142.2 140 136.0 124.7 123.7 120 413.2 100 87.9 92.1 34.6 36.2 32.4 ' [ 30.2 30.0 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 mEquity ratio “Gearing 26
Slide 27: Free cash flow
Free cash flow Cumulative MEUR 27
Slide 28: Interest bearing liabilities and net debt
Interest bearing liabilities and net debt MEUR 28
Slide 29: Maturity of long-term loan portfolio
Maturity of long-term loan portfolio MEUR Commercial papers, overdraft facilities, and lease agreements not included. 29
Slide 30: Financing Q3 2010
Financing Q3 2010 MEUR Total In use Revolving credit facilities 50.0 0.0 CP program 50.0 15.0 Cash and cash equivalents 10.7 During reporting period: A EUR 25 million loan agreement signed with Pohjola Bank for ship financing. Loan maturity 12 years. 30
Slide 31: Financials
Financials Arto Meitsalo
Slide 32: Income statement and key figures Q1–Q3
Income statement and key figures Q1–Q3 MEUR 2010 2009 Net sales 286.8 239.3 Depreciations -6.1 -6.8 Operating profit 12.4 11.3 Net financial expenses -3.0 -3.6 Profit before taxes 9.4 7.7 Profit for the period 7.0 6.1 2010 2009 Earnings/share, EUR 0.27 0.23 Equity ratio, % 30.0 32.4 Equity/share, EU
Slide 33: Balance sheet
Balance sheet MEUR 214.4 214.4 197.5 197.5 33
Slide 34: Financial targets
Financial targets Return on investment, return on equity Group on the whole ROI, % ROE, % Tavoite * Including a total EUR10.2 million of non-recurring sales gain ** Including a total EUR 8,2 million of non-recurring sales gain *** Including a total EUR 5,5 million of non-recurring sales gains and lo
Slide 35: Financial targets
Financial targets Operating profit, % -0.7 Target 35
Slide 36: Financial targets
Financial targets Dividend / earnings EUR 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 37
Slide 38: Shareholders / Allocation
Shareholders / Allocation Number of shareholders Share Q3/2010 Personnel Non- 0.2% Institutions domestic 26.5% 2.7% Manage- ment Private investors Board 0.8% 61.8% members 8.0% 38
Slide 39: Market value
Market value Share price, EUR Market value, MEUR (incl. own shares) 39
Slide 40: Outlook for 2010
Outlook for 2010
Slide 41: Expected in Aspo Group in 2010
Expected in Aspo Group in 2010 • Aspo will focus on Northern Europe and the growth markets in the future (previous market area definition: the Baltic Sea region). • Net sales and profitability growing. • The Group has achieved the targeted cost efficiency in administration. • Experts continue to exp
Slide 42: Guidance per October 26, 2010
Guidance per October 26, 2010 Aspo maintains its guidance for 2010 unchanged. • Aspo will increase its net sales significantly and improve its earnings per share. • Operating profit for 2009 included non-recurring sales gains and losses of EUR 5.5 million 42
Slide 43: Thank you!
Thank you!