Slide 1: A year of successful strategy execution
Q4 F I NANCI AL STATE ME NTS R E L EASE January – December 2024 A year of successful strategy execution CEO Rolf Jansson CFO Erkka Repo February 17, 2025
Slide 2: Strategy execution, growth and profitability improvement in a difficult market in Q4 2024
Strategy execution, growth and profitability improvement in a difficult market in Q4 2024 Growth and profit improvement in difficult market conditions Q4 2024 • Net sales from continuing operations grew by 21% compared with Q4 2023 • Comparable EBITA from continuing operations amounted to EUR 8.0 mi
Slide 3: Successful strategy execution and profitability improvement continued
Successful strategy execution and profitability improvement continued Q4 2024 Q1–Q4 2024 Net sales, continuing operations EUR 159.8 million (132.2) EUR 592.6 million (536.4) Comparable EBITA, continuing operations EUR 8.0 million (7.2) EUR 29.1 million (27.5) Comparable ROE, continuing operations 13
Slide 4: 2024, a year in difficult market conditions
2024, a year in difficult market conditions • Difficult ice conditions in the Baltic Sea region and political strikes in Finland impacting January – April 2024 • Overall soft market demand, especially in spot market. Macro economic recovery postponed. Especially Q4 demand lower than expected • Fairl
Slide 5: 2024, a year of successful strategy execution
2024, a year of successful strategy execution Business strategies Excecution evidence in year 2024 - OP Finland Infra and Varma Mutual Pension Insurance Company take 21.43% ownership in ESL ESL Shipping is focused on sustainability-driven growth, - Sale of the two supramax vessels combined with comm
Slide 6: The shift in strategy is clearly visible in Aspo's Q4 2024 net sales split
The shift in strategy is clearly visible in Aspo’s Q4 2024 net sales split 10–12/2021: EUR 163 million 10–12/2024: EUR 160 million 5% 18 % Finland 30 % 15 % 30 % Scandinavia Baltic countries 4% Other Europe (incl. Ukraine) 10 % Other countries Russia, Belarus and Kazakhstan (Leipurin) 18 % 20 % 10 %
Slide 7: The full impact on Aspo's profitability is by large still to come
The full impact on Aspo’s profitability is by large still to come 2024 2025–2028 - The twelfth green coaster is planned to be in commercial traffic by end of year 2026 - The four green handy vessels will enter into commercial traffic In average two green coasters in commercial traffic 2027-2028 duri
Slide 8: Aspo's ambition is to reach EUR 1 bn of sales and 8% of EBITA by 2028
Aspo’s ambition is to reach EUR 1 bn of sales and 8% of EBITA by 2028. Major actions already taken towards this financial ambition 8% >135 >500 14% 60-80 60-70 >300 New 85 5% 4.3% 50-60 20-40 >200 9.7% 4-5% 3.3% Green 211 20-30 189 per handies, annum 10 and other 2024 136 New Green market run-rate:
Slide 9: Aspo strategic priorities
Aspo strategic priorities Longer-term financial ambition of Aspo: 1 bn € of net sales and 8% EBITA in 2028 • ESL: >300 m€, 14+% • Telko: >500 m€, 8+% • Leipurin: >200 m€, 5+% Drive towards the vision to form two separate companies, ASPO Infra and Aspo Compounder, considering the differences in busin
Slide 10: ESG targets achieved in 2024 (1/2)
ESG targets achieved in 2024 (1/2) • Aspo announced in December 2024, that it has joined the Science Based Targets initiative (SBTi) and committed to set a near-term company-wide Emission intensity Rolling 12m science-based emission reduction target, aiming to limit global warming to 1.5°C in line w
Slide 11: ESG targets achieved in 2024 (2/2)
ESG targets achieved in 2024 (2/2) • Aspo aims to create an accident-free working environment with TRIF Incident frequency (TRIF), (Total Recordable Injury Frequency) developing towards zero. The Rolling 12m target set for 2024 was achieved: 4.4 actuals vs. target at 6.0 • Increased attention for sa
Slide 12: All business contributed to Q4 2024 net sales growth
All business contributed to Q4 2024 net sales growth MEUR Net Sales During Q1-Q4 2024, Aspo’s net sales from continuing operations grew by 10% to EUR 592.6 (536.4) million 200 35% 180 30% 159.8 160 152.8 25% In Q4 2024, Aspo’s net sales from continuing operations grew by 21% to EUR 159.8 (132.2) mil
Slide 13: Aspo's profitability improved, but below expectations due to soft demand
Aspo’s profitability improved, but below expectations due to soft demand MEUR Comp. EBITA During Q1-Q4 2024, comparable EBITA from continuing operations 14 14% was EUR 29.1 (27.5) million, the comparable EBITA rate was 4.9% 12.7 (5.1%) 12 12% 10 10% In Q4 2024, comparable EBITA from continuing opera
Slide 14: Items affecting comparability totalled EUR -7.9 million for year 2024
Items affecting comparability totalled EUR -7.9 million for year 2024 In the fourth quarter of 2024, items affecting MEUR EBITA, continuing operations 1-12/2024 comparability amounted to EUR 0.1 million and 30 29.1 were reported for ESL Shipping. The item related to 25 -7.2 -0.7 income from reversal
Slide 15: Free cash flow in 2024 negative due to Telko's acquisitions and ESL Shipping's investment
Free cash flow in 2024 negative due to Telko’s acquisitions and ESL Shipping’s investment Cash flow Operating cash flow was EUR 32.4 (47.6) million MEUR 67.7 The cash flow was mainly derived from ESL Shipping 60 Change in working capital was EUR -12.0 (4.5) million, 47.6 primarily driven by: 40 34.4
Slide 16: ESL Shipping builds four Green Handy vessels
ESL Shipping builds four Green Handy vessels • In October 2024, Aspo announced that ESL Shipping will build a series of four new, fossil free handy sized vessels • These new 1A ice class vessels are top of the market in terms of cargo capacity, technology and innovation • The new vessels can be oper
Slide 17: Aspo's subsidiary Leipurin expands its food ingredients business in the Baltics
Aspo’s subsidiary Leipurin expands its food ingredients business in the Baltics • In December 2024, Leipurin reached an agreement with Kartagena UAB to take over the food ingredients distribution business previously conducted by Kartagena UAB • Under this arrangement, Leipurin Lithuania will take ov
Slide 18: Leipurin completed its exit from Russia
Leipurin completed its exit from Russia • In October 2024, Aspo announced that Leipurin has completed the transaction of selling its Russian subsidiaries to Mr. Timur Akhiyarov • The transaction did not significantly impact the reported EBITA of Aspo Group • Leipurin signed a binding preliminary agr
Slide 19: Soft market demand in Q4
Soft market demand in Q4 Aspo Q4 2024 February 17, 2025 19
Slide 20: Soft market demand in ESL Shipping
Soft market demand in ESL Shipping MEUR Net sales, ESL Shipping 90 50% • Like-for-like net sales for coaster and handy operations 80 40% (excl. vessel sales) decreased by 5% 70 30% 63.3 • Sales decrease mainly driven by lower marine diesel fuel prices 60 20% 54.7 49.4 • Volumes increased slightly
Slide 21: Profitability below expectations driven by soft demand
Profitability below expectations driven by soft demand MEUR Comp. EBITA, ESL Shipping 12 24% 10.6 • In Q4 2024, the comparable EBITA decreased by 14% to 10 20% EUR 4.3 (5.0) million, with comparable EBITA rate being 7.8% (10.1%) 8 16% • Overall softer than expected contractual freight volumes demand
Slide 22: Significant sales and earnings growth from successful execution of the compounder strategy
Significant sales and earnings growth from successful execution of the compounder strategy Aspo Q4 2024 February 17, 2025 22
Slide 23: Acquisitions driving the sales growth
Acquisitions driving the sales growth MEUR Net sales, Telko • 43% sales growth in Q4 2024 driven by acquisitions and 90 50% organic volume growth 45% 80 • Sales prices were on a slightly lower level compared with 40% previous year 69.8 70 35% • Sales in November were softer than expected, but volume
Slide 24: Significant profit improvement in Telko driven by acquisitions
Significant profit improvement in Telko driven by acquisitions Comp EBITA, Telko MEUR 5 10% • In Q4, the comparable EBITA increased to EUR 3.9 (2.6) 3.9 million, with comparable EBITA rate being 5.5% (5.3%) 4 8% • Profitability improvement compared to last year driven by acquisitions 3 6% 2.6 • Acqu
Slide 25: The transformation of Leipurin continues
The transformation of Leipurin continues Aspo Q4 2024 February 17, 2025 25
Slide 26: Sales increase driven by Kebelco acquisition
Sales increase driven by Kebelco acquisition MEUR Net sales, Leipurin • In Q4 2024, Leipurin’s net sales increased by 4% from the 45 70% comparative period, amounting to EUR 35.3 (33.9) million 40 60% 35.3 35.3 • Organic net sales decreased slightly due 35 33.9 50% to slightly deflationary market pr
Slide 27: Leipurin's profit improvement continues
Leipurin’s profit improvement continues MEUR Comp. EBITA, Leipurin 1,6 1.6 8% 1.5 • In Q4 2024, the comparable EBITA was EUR 1.1 (0.9) 1,4 1.4 7% million, with comparable EBITA rate being 3.1% (2.6%) 1,2 1.2 1.1 6% • Improved Sales mix and successful margin management and Kebelco acquisition improve
Slide 28: Aspo's financial position and guidance for 2024
Aspo’s financial position and guidance for 2024 Aspo Q4 2024 February 17, 2025 28
Slide 29: Potential capex for 2024-28 is in the magnitude of EUR 300-350 m
Potential capex for 2024-28 is in the magnitude of EUR 300-350 m Capex allocation 2024–28 (EUR million) • Potential capex for 2024-28 taken down by EUR 50 million to EUR 300-350 million • About EUR 70 million (net of asset sales) used in 2024 Uncommitted • About EUR 135 million committed for 300 202
Slide 30: Investment into new Green Coaster and Green Handy vessels
Investment into new Green Coaster and Green Handy vessels Vessel investments and expected EBITDA impact in ESL Shipping 100% 90% • 12 Green Coasters, operational in 2024-26 80% • 4 Green Handies, 70% operational in 2027-28 60% • EUR 200 million capex in total 50% - 6 coasters sold to pool investors
Slide 31: Strong liquidity continues
Stong liquidity continues MEUR Maturity profile 120 • Strong liquidity continues with EUR 36 million in cash and EUR 40 million of unused RCFs 100 • Mainly to refinance maturing loans, new EUR 60 million syndicated loan was drawn in October 2024. The new loan is maturing in 2026 with one year 80 ext
Slide 32: Aspo's balance sheet remains strong
Aspo’s balance sheet remains strong Net debt, MEUR Net Debt and Net Debt / EBITDA Net debt / EBITDA 200 3.5 3,5 188 • Acquisitions done in 2024 are only partly 180 contributing to the rolling 12 months EBITDA. 3.0 3,0 165 If assuming full 12 months of EBITDA from the 160 156 acquired companies, the
Slide 33: The Board proposes a dividend of EUR 0.19 per share for the financial year 2024
The Board proposes a dividend of EUR 0.19 per share for the financial year 2024 EUR per share EPS and Dividend According to the revised dividend policy Aspo’s 1.2 1,2 dividend growth is based on positive profitability 1.08 development with the aim to pay-out annually up to 50% of net profit as divi
Slide 34: Fourth quarter 2024 highlights
Fourth quarter 2024 highlights Growth and profit improvement in difficult market conditions Q4 2024 • Net sales from continuing operations grew by 21% compared with Q4 2023 • Comparable EBITA from continuing operations for Q4 2024 was EUR 8.0 (7.2) million Major investments in 2024 to boost long-ter
Slide 35: Assumptions behind the guidance for 2025
Assumptions behind the guidance for 2025 • When entering into year 2025, ESL Shipping’s demand is expected to be weak overall, with fairly low contractual volumes combined with low spot market pricing. Volumes are expected to slowly revive during the year both in the forest and steel industry • For
Slide 36: Guidance for 2025
Guidance for 2025 • Aspo Group’s comparable EBITA is expected to be EUR 35–45 million in 2025 (EUR 29.1 million in 2024) • Aspo’s operating environment is estimated to remain challenging during the first half of the year and to gradually improve during the second half of the year. Aspo’s profit impr
Slide 37: Summary
Summary • Successful strategy execution in 2024 • 2024: Growth and profit improvement in difficult market conditions • Aspo profit generation #1 priority for year 2025 • Aspo Group’s comparable EBITA is expected to be EUR 35–45 million in 2025 (EUR 29.1 million in 2024) • Aspo’s ambition is to reach
Slide 38: Q&A
Q&A Aspo Q4 2024 February 17, 2025 38