Slide 1: Aspo Q2
Aspo Q2 August 17, 2016 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 Earnings per share were Net cash from operating 116.2 (110.2) million. EUR 0.09 (0.10). activities was poor. Operating profit improved In particular, the growth of to EUR 4.8 (4.1) million. Telko tied up working capital. Stron
Slide 3: Operating profit improved
Operating profit improved Operating profit MEUR Operating profit H1 28 improved by 14%. 24 23.4 20.6 Q1 Operating profit Q2 20 17.9 Q1-Q2 improved by 17%. 16 14.4 Q1-Q3 12 10.1 Operating profit H1 was 8.1 Q1-Q4 EUR 8.1 (7,1) million. 8 7.1 3.8 3.3 4 3.0 Operating profit Q2 was 0 EUR 4.8 (4.1) millio
Slide 4: Long-term financial targets
Long-term financial targets Operating profit, % % H1 usually weaker than H2. 8 7 Q1 6 5.0 4.8 Q1-Q2 5 4.4 4.4 4.6 3.8 Q1-Q3 4 3.5 3.4 3.3 H1 operating profit rate 2.9 Q1-Q4 3 increased from the 2 comparative period. 1 Improvement in ESL 0 Shipping and Telko. 2014 2015 2016 Q2 August 17, 2016 4 The t
Slide 5: Long-term financial targets
Long-term financial targets Return on equity (ROE) % ROE was 11%. 28 26.2 24 20.8 Q1 18.8 20.1 19.1 20 17.8 Q1-Q2 15.6 16 Q1-Q3 12 11.0 In the comparative period a 9.5 8.9 Q1-Q4 sales gain from shares 8 increased the return on 4 equity starting from Q1. 0 2014 2015 2016 Q2 August 17, 2016 5 The targ
Slide 6: Long-term financial targets
Long-term financial targets Gearing % Gearing was 115%. 140 124 119 115 120 112 111 109 101 100 105 101 Q1 100 Q1-Q2 80 Q1-Q3 60 In H1, gearing was affected Q1-Q4 by the payment of 40 dividends and the low net 20 cash from operating activities. 0 2014 2015 2016 Q2 August 17, 2016 6 The target level
Slide 7: Net sales
Net sales Net sales by quarter MEUR Net sales increased by 5%. 140 130 123 123 122 116 120 108 110 112 Increase 18% in Russia, 102 Q1 100 99 Ukraine and other CIS Q2 countries. 80 Q3 60 Q4 Telko ja Kauko were 40 growing. 20 0 2014 2015 2016 Q2 August 17, 2016 7
Slide 8: Net sales by segment
Net sales by segment MEUR 70 Distribution of net sales, 60 Q2/2016 ESL Shipping 14% 50 Leipurin 25% 40 Telko 54% 30 Kauko 7% 20 10 0 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 ESL Shipping 18.2 19.9 19.9 16.2 16.7 Leipurin 29.7 28.3 31.5 26.2 28.8 Telko 55.2 56.5 53.6 49.4 62.2 Kauko 7.1 6.8 17.1 6.7 8.5 Q2 Augu
Slide 9: Net sales by market area
Net sales by market area MEUR 45 Distribution of net sales, 40 Q2/2016 35 Finland 32% 30 Scandinavia 11% 25 Baltic countries 11% 20 Russia, Ukraine and 33% 15 other CIS countries 10 Other countries 13% 5 0 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Finland 38.5 35.0 38.8 34.1 37.7 Scandinavia 12.9 15.6 11.6 10.8
Slide 10: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR Net sales in eastern 45 41.7 41.2 markets increased by 18% 40 39.0 38.1 to EUR 38.1 (32.2) million. 35.0 34.7 Q1 35 32.2 RUB was approximately 31.1 30 Q2 25% weaker than in the 26.4 26.6 comparative period. 25 Q3 20 Q4 The largest market area. 1
Slide 11: Aspo’s businesses
Aspo’s businesses Q2 August 17, 2016 11
Slide 12: ESL Shipping
ESL Shipping Leading marine logistics provider for bulk cargo Q2 August 17, 2016 12
Slide 13: ESL Shipping: Quarter in brief and outlook for 2016
ESL Shipping Quarter in brief and outlook for 2016 International cargo prices are low. In Q2, operations expanded to include transportation of project cargo in the Profitability is based on special expertise Russian arctic. and unique services. In Q3, the transportation of raw materials from the Can
Slide 14: ESL Shipping, key figures
ESL Shipping, key figures Net sales MEUR Net sales decreased by 8% 25 23.2 due to the weak market 21.6 21.2 19.9 19.9 situation of Supramax 20 19.2 vessels and lower fuel 18.2 18.2 Q1 16.2 16.7 prices. Q2 15 Q3 10 Q4 Freight volumes remained at the comparative period’s 5 level i.e. 2.4 (2.4) million
Slide 15: ESL Shipping key figures
ESL Shipping key figures Operating profit MEUR Operating profit improved 6 by 16% and was EUR 2.9 5.2 (2.5) million. 5 4.8 4.4 4.5 Q1 4 Q2 3.3 3.3 2.9 Q3 3 2.7 2.5 Supramax vessels 2.2 Q4 2 produced a loss. 1 0 2014 2015 2016 Q2 August 17, 2016 15
Slide 16: Baltic Dry Index 2011‒2016
Baltic Dry Index 2011‒2016 Source: Lloyds/BDI Q2 August 17, 2016 16
Slide 17: ESL Shipping in the arctic in 2016
ESL Shipping in the arctic in 2016 Q2 August 17, 2016 17
Slide 18: Leipurin
Leipurin From breads and recipes to a comprehensive selection Q2 August 17, 2016 18
Slide 19: Leipurin: Quarter in brief and outlook for 2016
Leipurin Quarter in brief and outlook for 2016 The prices of key raw materials have Net sales decreased to EUR 28.8 (29.7) mainly remained unchanged. million. Operating profit was low at EUR 0.4 (0.7) The consolidation of bakeries is million. continuing in Finland. Machinery operations still produce
Slide 20: Leipurin, key figures
Leipurin, key figures Net sales MEUR Net sales continued to 40 36.1 decrease and amounted to 34.5 EUR 28.8 (29.7) million. 35 34.1 31.5 30.1 29.7 Q1 30 28.3 28.8 28.3 26.2 Q2 25 20 Q3 In the eastern markets net 15 Q4 sales of bakery raw 10 materials increased by 8%. 5 Net sales in the western market
Slide 21: Leipurin, key figures
Leipurin, key figures Operating profit MEUR Operating profit decreased 2 1.9 to EUR 0.4 (0.7) million. 1.8 1.7 1.6 Q1 Operating profit rate of raw 1.4 materials in Russia was Q2 1.2 good, about 8%. 1 Q3 0.8 Low level of machinery and 0.8 0.7 Q4 0.6 equipment investments 0.5 0.5 0.5 0.4 0.4 decreases
Slide 22: 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 14.0 700 12.0 11.8 600 573 10.8 523 9.9 Q1 493 Q1 10.0 500 8.9 9.1 403 435 Q2 427 8.0 405 404 404 Q2 8.0 7.7 400 7.2 353 6.3 Q3 Q3 6.1 6.0 300 Q4 Q4 4.0 200 2.0 100 0.0 0 2014
Slide 23: Telko
Telko Raw material solutions for the industry Q2 August 17, 2016 23
Slide 24: Telko: Quarter in brief and outlook for 2016
Telko Quarter in brief and outlook for 2016 Prices of plastic raw materials increased Net sales increased significantly. from the first quarter. The price level of industrial chemicals remains low. The highest growth came from the eastern markets. Industrial demand remained unchanged. Despite the ch
Slide 25: Telko, key figures
Telko, key figures Net sales MEUR Net sales increased by 13% 70 62.2 and amounted to EUR 62.2 60.4 61.1 60 (55.2) million. 55.8 55.2 56.5 53.6 50.0 Q1 49.6 49.4 50 Q2 40 Q3 30 Q4 Euro-denominated growth in Russia, Ukraine and 20 other CIS countries 18%. 10 Net sales exceeded the level preceeding the
Slide 26: Telko, key figures
Telko, key figures Operating profit MEUR Operating profit rate 3.5 3.2 3.2 improved to 4.8% (4.2) 3.0 3.0 3.0 although the relative 2.8 Q1 profitability decreased in 2.5 2.3 2.3 the east. 2.1 Q2 2.0 1.9 1.8 Q3 1.5 Q4 Operating profit rate in the eastern markets was less 1.0 than 5%. 0.5 0.0 2014 201
Slide 27: 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 1000 946 29.9 900 870 864 850 30.0 28.5 27.8 28.6 27.0 800 24.2 25.0 Q1 707 706 25.0 691 680 Q1 700 630 20.7 Q2 Q2 20.0 19.4 19.3 600 559 Q3 500 Q3 15.0 Q4 400 Q4 10.0 30
Slide 28: Kauko
Kauko The best tools for mobile knowledge work 28 Q2 August 17, 2016
Slide 29: Kauko: Quarter in brief and outlook for 2016
Kauko Quarter in brief and outlook for 2016 Net sales increased by 20% to EUR 8.5 Net sales of mobile knowledge work were (7.1) million. Operating profit decreased to at the level of the comparative period. A EUR -0.3 (0.1) million. significant agreement was signed in Finland, and the related income
Slide 30: Kauko, key figures
Kauko, key figures Net sales Net sales of mobile MEUR 18 17.1 knowledge work and energy efficiency are 16 Q1 increasing. 14 12.8 12 Q2 10 8.6 Q3 8.5 8 7.1 7.5 7.1 6.8 6.7 Q4 Net sales grew by 21% in 6 5.5 H1 and by 20% in Q2. 4 2 0 2014 2015 2016 Q2 August 17, 2016 30
Slide 31: Kauko, key figures
Kauko, key figures Operating profit Operating profit showed a loss in H1 and Q2. 1.0 0.5 0.6 0.5 0.0 0.1 0.1 0.0 Q1 -0.5 -0.2 -0.2 -0.3 -0.3 Q2 -1.0 Q3 Kauko has invested -1.5 Q4 significantly in competence development, recruited key -2.0 -2.0 personnel and started -2.5 operations in Germany. 2014 2
Slide 32: Financials and Financing
Financials and Financing Harri Seppälä Q2 August 17, 2016 32
Slide 33: Income statement
Income statement MEUR Q1-Q2/2016 Q1-Q2/2015 Ebitda rate nearly unchanged. Net sales 214.7 212.2 Operating profit rate increased Ebitda 13.8 13.8 to 3.8% (3.3) in H1 and to 4.1% Depreciation, amortization and -5.7 -6.7 (3.7) in Q2. impairment losses In 2015 financial items include Operating profit 8.
Slide 34: Net cash from operating activities
Net cash from operating activities MEUR 30.0 Net cash from operating 25.0 25.0 22.0 activities weakened and was 20.0 EUR -11.0 (-4.1) million. Q1 15.0 10.7 Q1-Q2 10.0 6.2 5.0 Q1-Q3 0.5 0.0 Q1-Q4 Change in working capital was EUR -22.7 (-16.2) million, -5.0 -2.3 -4.1 -7.0 tied mainly to the strong -1
Slide 35: Equity ratio and gearing
Equity ratio and gearing % % 38 140 Gearing 115%. 37 120 During the quarter a 36 100 dividend of EUR 12.5 35 million was paid and a 80 34 hybrid bond was issued. 60 33 40 Payments related to vessel 32 31 20 investments will total EUR 5 million in the second half of 30 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Slide 36: Structure of liabilities
Structure of liabilities Interest bearing liabilities on Interest bearing liabilities on June 30, 2015: EUR 133 million June 30, 2016: EUR 140 million 5% 8% 6% Loans Loans 6% 30% Commercial papers Commercial papers Others 14% TyEL pension loan 65% Others 66% Bond Q2 August 17, 2016 36
Slide 37: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 100.0 Possibility to call the 90.0 remaining hybrid bond of appr. 4.4 EUR 5 million in November 80.0 11.0 2016. New hybrid bond of EUR 70.0 25 million. Possibility to call TyEL pension loan 60.0 25.0 after four years. Bond 50.0 1.4 Hybrid bond (call) 40.0
Slide 38: General market outlook for 2016
General market outlook for 2016 • Market uncertainty will continue in the EU and eastern Uncertainty in the eastern markets. markets may strongly • The prices of the raw materials important to Aspo and influence to the currency international dry bulk freight rates are expected to remain rates. at a
Slide 39: Guidance for 2016
Guidance for 2016 • Guidance will remain unchanged. • Aspo's operating profit will be EUR 17–24 (20.6) million. Q2 August 17, 2016 41