Slide 1: Aspo's year 2018 and Q4
Aspo’s year 2018 and Q4 February 14, 2019 CEO Aki Ojanen
Slide 2: Aspo's year 2018
Aspo’s year 2018 Net sales increased and Operating profit, adjusted Earnings per share, adjusted were EUR 540.9 (502.4) by an impairment loss was by an impairment loss of million. EUR 25.4 million. goodwill were EUR 0.57. Earnings per share were Net sales grew by 8%. Operating profit was EUR EUR 0.4
Slide 3: Net sales by quarter
Net sales by quarter Net sales by quarter MEUR In Q4, net sales increased 160 157 by 18% and were EUR 156.6 140 132 133 136 (132.4) million. 125 124 127 120 116 118 119 115 Q1 The most significant growth 99 Q2 in net sales was in ESL 100 Shipping. 80 Q3 Q4 Market area, Russia, other 60 CIS countries
Slide 4: Operating profit
Operating profit Operating profit, cumulative MEUR In 2018, operating profit was 28 EUR 20.6 (23.1) million. 25.4 24 23.1 20.4 Q1 An impairment loss of EUR 20 18.0 20.6 4.8 million recognized on 16.6 16 Q1-Q2 Kauko’s goodwill. 14.1 12 10.8 Q1-Q3 ESL Shipping, Leipurin and 9.5 8.1 Telko increased ope
Slide 5: Operating profit by quarter
Operating profit by quarter Operating profit, quarter In Q4, Aspo’s operating MEUR 10 profit, adjusted by an impairment loss on Kauko’s goodwill grew by 14% and 8 7.4 7.1 7.1 7.2 Q1 was EUR 7,4 million. 6.3 6.5 6.0 6 Q2 5.1 4.8 4.4 3.7 Q3 ESL Shipping, Leipurin and 4 3.3 Telko improved operating Q4
Slide 6: Long-term financial targets
Long-term financial targets Operating profit, %, cumulative % In 2018, operating profit 8 rate was 3.8% (4.6). 7 7.0 6 Q1 Operating profit rate, 4.7 4.7 adjusted by an impairment 5 4.5 4.5 4.6 4.2 4.4 Q1-Q2 loss, was 4.7%. 4 3.8 3.7 3.9 3.4 3.2 3.8 Q1-Q3 3 The target level is 7% by 2 Q1-Q4 2020. 1 0
Slide 7: Long-term financial targets
Long-term financial targets Return on equity, (ROE) % In 2018, ROE weakened and 20 was 12.4% (17.1). 16.717.1 16 15.6 14.6 14.6 Q1 13.4 13.4 13.5 12.4 *) Q1-Q2 Target level is more than 12 11.0 20% on average by 2020. 8.9 Q1-Q3 8 7.0 Q1-Q4 The target level is indicated by the dashed line 4 0 2016 20
Slide 8: Long-term financial targets
Long-term financial targets Gearing % Gearing increased to 154.4% 180 (103.9). 160 155 154 140 Q1 In 2018, investment in two 119 120 109 115 114 110 103 Q1-Q2 new dry bulk cargo vessels 104 104 100 90 94 and the acquisition of Q1-Q3 AtoB@C had an impact on 80 Q1-Q4 Aspo’s capital structure. 60 40 Th
Slide 9: Aspo represents a balanced entity
Aspo represents a balanced entity Net sales by segment Q4 2018 Net sales by market area Q4 2018 6% 13% Finland 53,7 MEUR 30% ESL Shipping 46,4 MEUR 34% Scandinavia 20,1 MEUR Leipurin 31,6 MEUR Baltic countries 14,8 MEUR 44% Telko 69,5 MEUR 30% Kauko 9,1 MEUR Russia, other CIS countries and Ukraine 4
Slide 10: Net sales 2014–2018
Net sales 2014–2018 Russia, other CIS countries and Ukraine MEUR 200 The euro-denominated net sales in eastern markets 180 171.9 164.9 have increased since 2015. 160 153.0 145.6 140 128.3 In 2018, growth was 4%. 120 100 The profitability of Leipurin 80 remained at the same level 60 and was 8%. Telko
Slide 11: Russia, other CIS countries and Ukraine
Russia, other CIS countries and Ukraine Net sales MEUR In eastern markets, net 50.0 46.2 45.6 47.5 sales increased and were 45.0 42.0 43.2 42.3 EUR 171.9 (164.9) million. 38.1 38.9 39.3 40.1 Q1 40.0 35.0 32.6 Q2 The devaluation of Russian 30.0 26.6 Q3 ruble decelerated the 25.0 increase of net sales
Slide 12: ESL Shipping
ESL Shipping ESL Shipping Johtava merilogistiikan tuottaja irtolasteille Leading marine logistics provider for bulk cargo Q4 February 14, 2019
Slide 13: ESL Shipping Q4
ESL Shipping Q4 Market cargo prices showed a slight Net sales increased notably to EUR 46.4 decrease and, at the end of the fourth (22.6) million. Net sales increased by 105%. quarter, were at the same level as in the year before. This increase mainly resulted from the completion of ESL Shipping’s n
Slide 14: ESL Shipping key figures Q4
ESL Shipping key figures Q4 Net sales In Q4, net sales increased by MEUR 105% and were EUR 46.4 50 46.4 (22.6) million. 45 The impact of the acquisition 40 Q1 on the increase was EUR 20 35 30.6 Q2 million. 30 25 22.6 22.6 Q3 Transportation volumes in 20.6 20.5 18.9 19.5 18.3 Q4 the steel industry an
Slide 15: ESL Shipping key figures Q4
ESL Shipping key figures Q4 Operating profit MEUR In Q4, operating profit 5 increased and was EUR 4.2 4.5 4.1 4.1 4.3 4.2 (4.1) million. 4.0 4 Q1 3.5 3.4 3.3 2.9 3.0 3.1 Q2 3 2.6 In Q4, operating profit rate Q3 2.5 2.2 decreased and was 9.1% 2 Q4 (18.1). 1.5 Operating profit rate was 1 not satisfact
Slide 16: Baltic Dry Index 2014‒2018
Baltic Dry Index 2014‒2018 Source: Bloomberg Q4 February 14, 2019
Slide 17: Leipurin
Leipurin From bread and recipes to a comprehensive selection Q4 February 14, 2019
Slide 18: Leipurin Q4
Leipurin Q4 The market for industrially packed bread Net sales decreased by 4% to EUR 31.6 decreased in the west. The market for in- (32.9) million. store bakeries and baking units continued to increase. This decrease was mainly attributable to In Russia, the market for industrially the timing of pr
Slide 19: Leipurin key figures Q4
Leipurin key figures Q4 Net sales MEUR Net sales decreased and 35 were EUR 31.6 (32.9) 32.9 30.7 30.2 31.2 31.6 million. 28.8 29.4 30.1 29.9 30 27.0 28.0 Net sales of cyclical 26.2 Q1 25 machinery operations Q2 decreased about 20%. 20 Q3 15 In western markets, the net Q4 sales of raw material and 10
Slide 20: Leipurin key figures Q4
Leipurin key figures Q4 Operating profit MEUR Operating profit was 1.6 EUR 0.8 (0.7) million. 1.4 1.4 Q1 Operating profit included 1.2 costs from discontinuation Q2 1.0 0.9 of loss-producing functions. 0.8 0.8 0.8 0.8 0.7 0.7 Q3 Operating profit rate was 0.6 0.6 Q4 2.5% (2.1). 0.5 0.4 0.4 0.4 0.4 Th
Slide 21: Net sales in Russia, other CIS countries and Ukraine
Net sales in Russia, other CIS countries and Ukraine Net sales in the market area Net sales of the Russian company MEUR MRUB 14.0 800 693 11.8 700 12.0 10.3 Q1 600 493 562 Q1 10.0 9.6 534 514 8.3 8.1 8.3 8.6 484 478481 8.2 Q2 500 448 456452 Q2 8.0 7.7 7.7 435 7.2 6.1 Q3 400 Q3 6.0 Q4 300 Q4 4.0 200
Slide 22: Telko
Telko Raw material solutions for the industry Q4 February 14, 2019
Slide 23: Telko Q4
Telko Q4 International economic growth slowed Telko’s net sales increased by 6% to EUR down in Telko’s market areas. 69.5 (65.6) million. The price of oil fell steeply during Q4. The Chemical operations showed an increase of price level of chemicals and plastics 12%, whereas plastic operations incre
Slide 24: Telko key figures Q4
Telko key figures Q4 Net sales MEUR Net sales were EUR 69.5 80 71.7 (65.6) million. 70 67.3 65.6 67.3 69.5 62.2 63.8 64.9 63.6 65.7 Q1 60 57.7 Problems with the 50 49.4 Q2 availability of products that Q3 limited the growth of net 40 sales have been eliminated. 30 Q4 In the western markets the 20 sa
Slide 25: Telko key figures Q4
Telko key figures Q4 Operating profit MEUR Operating profit increased 4.0 and was EUR 3.4 (3.0) 3.6 3.4 million. 3.5 3.0 3.1 3.0 Q1 In Q4, operating profit rate 2.9 3.0 increased and was 4.9% 2.5 2.5 2.3 2.3 2.3 2.4 2.2 Q2 (4.6) 2.0 Q3 Q4 In the eastern markets the 1.5 operating profit rate 1.0 incr
Slide 26: Net sales in Russia, other CIS countries and Ukraine
Net sales in Russia, other CIS countries and Ukraine Net sales in the market area Net sales of the Russian company MEUR MRUB 40.0 1400 35.3 34.8 34.4 1258 1195 35.0 33.5 1200 1155 1149 31.4 31.5 30.4 31.0 1029 30.0 28.6 28.7 Q1 1005 982 1000 946 967 Q1 888 25.0 24.0 Q2 794 Q2 800 19.3 Q3 680 20.0 Q3
Slide 27: Kauko
Kauko Best tools for mobile knowledge work Q4 February 14, 2019
Slide 28: Kauko Q4
Kauko Q4 Aspo Plc decided to restructure the energy Net sales decreased by 19% to EUR 9.1 business either by divesting or (11.3) million. discontinuing it. An impairment loss of EUR 4.8 million of During the comparative period, net sales goodwill reduced Kauko’s operating profit. included project de
Slide 29: Kauko key figures Q4
Kauko key figures Q4 Net sales Net sales decreased and MEUR were EUR 9.1 (11.3) million. 14 12 11.7 11.3 10.4 Q1 10 9.5 9.1 8.5 8.5 Q2 8.3 8 6.7 7.1 6.9 7.2 Q3 6 Q4 4 2 0 2016 2017 2018 Q4 February 14, 2019
Slide 30: Kauko key figures Q4
Kauko key figures Q4 Operating profit Operating profit decreased MEUR and was EUR -4.4 (0.0) 1.0 0.5 0.7 0.4 million. 0.1 0.2 0.0 0.0 0.0 Operating profit adjusted -0.3 -0.3 Q1 by an impairment loss was -0.5 -0.4 -1.0 -0.6 EUR 0.4 million. Q1-Q2 -2.0 Q1-Q3 -3.0 Q1-Q4 -4.0 -4.4 -5.0 2016 2017 2018 Q4
Slide 31: Dividend proposal 2018
Dividend proposal 2018 The Board of Directors’ Dividend will be paid Dividend distribution dividend proposal: in two installments: policy: Aspo's goal is EUR 0.44 / share EUR 0.22 / share in to annually increase April the amount of EUR 0.22 / share in dividends. November Q4 February 14, 2019
Slide 32: General outlook for markets in 2019
General outlook for markets in 2019 • International economy is expected to continue the growth. • Industrial production is expected to increase in the main Industrial production is market areas of Aspo’s business operations in Northern expected to grow in Aspo’s Europe. main market areas. • General
Slide 33: Guidance for 2019
Guidance for 2019 Aspo’s operating profit will be EUR 28-33 million (20.6) in 2019. Q4 February 14, 2019
Slide 34: Additional material
Additional material Q4 February 14, 2019
Slide 35: Net cash from operating activities
Net cash from operating activities MEUR 25.0 Net cash from operating 20.0 20.3 activities increased to EUR 17.4 16.2 EUR 20.3 (17.4) million. 15.0 Q1 10.0 7.6 Q1-Q2 5.7 5.0 3.5 Q1-Q3 0.0 Q1-Q4 Investments carried out have -5.0 -2.5 -3.2 -1.2 -1.2 still strengthened Aspo’s -7.0 ability to produce cas
Slide 36: Equity ratio and gearing
Equity ratio and gearing % % 45 180 Gearing at Aspo Group 40 160 was 154% (104). 35 140 30 120 25 100 20 80 15 60 Investment in two new dry 10 40 bulk cargo vessels and the 5 20 acquisition of AtoB@C had 0 0 an impact on Aspo’s capital Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/1
Slide 37: Structure of liabilities
Structure of liabilities Interest bearing liabilities Interest bearing liabilities December 31, 2017: 137 MEUR December 31, 2018: 199 MEUR 3% 6% 8% 4% 5% 4% 9% Loans Loans 3% Commercial papers Commercial papers Others Others TyEL pension loan TyEL pension loan Bond Bond 80% 78% Q4 February 14, 2019
Slide 38: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 90.0 At the end of the review 80.0 1.4 period, the average interest rate of interest bearing 70.0 25.0 liabilities was 1.6% (1.8). 60.0 TyEL pension loan 50.0 Bond 20.0 Hybrid bond (call) 40.0 1.4 70.9 Revolving credit facilities The amount of interest 30
Slide 39: Shareholders / allocation
Shareholders / allocation Number of shareholders Distribution of ownership on December 31, 2018 by ownership group, % 10,000 4% 9,502 9,500 9,236 20% 9,060 Institutions 9,000 8,929 Group Executive Commitee 1% 8,500 Board 8,150 Private investors 8,000 53% 22% Non domestic&nominee 7,500 registrations.