Slide 1: Solid fourth quarter topped off Aspo's record performance in 2022
Aspo Group 2022 financial statement release Solid fourth quarter topped off Aspo’s record performance in 2022 CEO Rolf Jansson 1
Slide 2: All-time high profitability for Aspo in year 2022
All-time high profitability for Aspo in year 2022 Q4 2022 Full-year 2022 Overall strong performance continued in Q4 2022 Net sales, Group total • Comparable operating profit remained on a strong EUR 164.6 million (163.2) EUR 652.6 million (586.4) level at EUR 11.3 million (13.9) in Q4 • Strong EPS d
Slide 3: Net sales development above target for 2022, despite a slowdown
Net sales development above target for 2022, despite a slowdown MEUR Net sales Growth % 220 30% • In Q4, Group net sales increased by 1% to 200 25% EUR 164.6 (163.2) million. 180 20% • For full-year 2022, Aspo’s net sales totaled EUR 652.6 (586.4) million showing 11% 160 15% growth. Target 5-10 % 14
Slide 4: Comparable operating profit above target and record-high in 2022
Comparable operating profit above target and record-high in 2022 MEUR Comp. oper. profit Comp. oper. profit % 18,0 12% • Comparable operating profit for Q4 amounted to EUR 11.3 (13.9) million 16,0 and the comparable operating profit 10% rate was 6.9% (8.5%). 14,0 • In 2022, comparable operating prof
Slide 5: Items affecting comparability totaled EUR -16.1 million in Q4 and EUR -24.1 in 2022
Items affecting comparability totaled EUR -16.1 million in Q4 and EUR -24.1 in 2022, primarily related to Russia’s invasion of Ukraine ESL Shipping • Legal costs related to Russia EUR -0.4 million 2022 total Telko • Russia & Belarus impairment losses EUR -24.1 million EUR -9.0 million and divestment
Slide 6: Solid cash flow development throughout the year
Solid cash flow development throughout the year MEUR 70 • Net cash from operating activities was EUR 67.7 (44.0) million for 2022. All core business of 60 Aspo contributed to the strong cash flow. • The impact of the change in working capital on 50 cash flow was EUR -6.7 (-22.0) million. - Inventori
Slide 7: Above target return on equity, when adjusted by items affecting comparability
Above target return on equity, when adjusted by items affecting comparibility ROE % 35,0 • Return on equity adjusted by the items affecting comparability was 30,0 30.8% (26.8%). Reported ROE was 15.2% (20.8%). 25,0 • Positive ROE development was Target >20% supported by strong profitability 20,0 dev
Slide 8: Exits from selected Eastern markets are progressing
Exits from selected Eastern markets are progressing • In October 2022, Telko signed a binding preliminary agreement on selling all shares in its subsidiary in Russia, to GK Himik, a Russian industrial company. • In December 2022, Telko finalized the preliminary agreement to sell all shares in its su
Slide 9: Carbon intensity and injury frequency developing favourably
Carbon intensity and injury frequency developing favourably • Aspo's key target is to reduce carbon intensity, CO2 (tn) per net sales (EUR thousand), by 30% by 2025. Starting level (2020) was 0.44 and target level for 2025 Carbon intensity in 2022 is 0.30. 0.33 (0.42 in 2021) • During the last 12 mo
Slide 10: Taru Uotila appointed director of legal affairs, HR and sustainability
Taru Uotila appointed director of legal affairs, HR and sustainability • Taru Uotila (LL.M) was appointed Aspo Group's director of legal affairs, HR and sustainability and a member of Aspo's Group Executive committee. • She started in her position on January 2, 2023. • Previously Uotila worked as VR
Slide 11: Aspo business reviews
Aspo business reviews Forerunner and Accelerated growth Towards full potential industrial partner Aspo Q4 2022 February 15, 2023 11
Slide 12: Good demand continued and profitability at all-time high in Q4
Good demand continued and profitability at all-time high in Q4 Aspo Q4 2022 February 15, 2023 12
Slide 13: Strong net sales growth supported by market conditions and efficient operations
Strong net sales growth supported by market conditions and efficient operations MEUR Net sales Growth % • In 2022, ESL Shipping’s net sales increased by 28% from the comparative period, amounting to EUR 245.4 (191.4) million. In Q4, net sales 70 60% increased by 16% to EUR 63.3 (54.7) million. 65 •
Slide 14: Baltic Dry indecies continued to decline
Baltic Dry indecies continued to decline Baltic dry index Baltic handysize index Baltic supramax index Source: Baltic dry Index, banchero costa network February 3, 2023. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. The Baltic Dry Index takes into
Slide 15: Record-high profitability in Q4 for ESL Shipping
Record-high profitability in Q4 for ESL Shipping MEUR Comp. oper. profit Comp. oper. profit % • In 2022, the comparable operating profit increased to EUR 37.4 (26.8) million and the comparable 12 20% operating profit rate was 15.2% (14.0%). In Q4, the 11 comparable operating profit was EUR 10.6 (9.8
Slide 16: Decline in net sales and profitability in Q4 especially due to Russia and Ukraine
Decline in net sales and profitability in Q4 especially due to Russia and Ukraine Aspo Q4 2022 February 15, 2023 16
Slide 17: Net sales decline due to shrinking Eastern business
Net sales decline due to shrinking Eastern business, market conditions still favorable in other market areas MEUR Net sales Growth % • In 2022, net sales decreased by 1% to EUR 267.4 (268.8) million. In Q4, Telko’s net sales decreased by 20% to EUR 59.2 (73.6) million. 80 40% • Negative sales develo
Slide 18: New acquisition in the chemicals business line
New acquisition in the chemicals business line • On January 31, Telko acquired a Polish distribution company Eltrex. • Eltrex is a distributor of specialty chemicals and industrial packaging materials. The company’s wide offering includes raw materials for coatings, flooring and household chemicals
Slide 19: Q4 weaker due to shrinking businesses in Russia and Ukraine
Q4 weaker due to shrinking businesses in Russia and Ukraine, and cost effects from impairments. Strategic outlook remain intact MEUR Comp. oper. profit Comp. oper. profit % 9 12% • Telko’s comparable operating profit for 2022 was EUR 20.8 (21.2) million, and its comparable operating profit rate was
Slide 20: Strong top-line growth and improving profitability in the fourth quarter
Strong top-line growth and improving profitability in the fourth quarter Aspo Q4 2022 February 15, 2023 20
Slide 21: Net sales growth driven by inflation and the Kobia acquisition
Net sales growth driven by inflation and the Kobia acquisition MEUR Net sales Growth % 45 • In 2022, Leipurin’s net sales increased by 15% and were EUR 130.6 (113.1) million. Net sales growth was further strengthened in 40 30% Q4/2022 due to the Kobia acquisition - In Q4, net sales in region Finland
Slide 22: Sale and lease back transaction of the Gothenburg warehouse property completed
Sale and lease back transaction of the Gothenburg warehouse property completed • In February 2023, Leipurin completed a sale and lease back transaction for its warehouse property in Gothenburg, Sweden. • The buyer of the property is Revelop V AB, a Swedish real estate investor. • As a result of the
Slide 23: Positive profitability development throughout 2022
Positive profitability development throughout 2022 MEUR Comp. oper. Profit Comp. oper. profit % 1,2 6% • Leipurin’s comparable operating profit for full-year 2022 was EUR 3.3 (1.9) million. In Q4, the comparable operating profit Target 5 % was EUR 1.1 (0.7) million. 1 5% • In 2022, comparable operat
Slide 24: New Managing Director of Leipurin started Jan 2nd 2023
New Managing Director of Leipurin started Jan 2nd 2023 • Miska Kuusela was appointed Managing Director of Leipurin on October 25. • He joined Leipurin from Myllyn Paras Finland, where he held the position of the CEO. • Kuusela has extensive experience in leadership positions in the food industry, an
Slide 25: Aspo's financial position, summary of year 2022, dividend proposal and guidance for 2023
Aspo’s financial position, summary of year 2022, dividend proposal and guidance for 2023 Aspo Q4 2022 February 15, 2023 25
Slide 26: Aspo's balance sheet strengthened during 2022
Aspo’s balance sheet strengthened during 2022 Equity ratio % Gearing % 40 200 • Equity ratio and gearing continued at strong levels during Q4 and stood at 35 180 34.7% (32.0) and 108.4% (131.0). Gearing target <130 % • During 2022, Aspo’s balance sheet 30 160 strengthened as a result of improved pro
Slide 27: Strong liquidity combined with balanced maturity structure
Strong liquidity combined with balanced maturity structure Interest-bearing debt incl. lease Maturity profile (mEUR) liabilities (mEUR) 100 90 80 Net interest- 17 bearing debt total 15 70 EUR 155.7 million 60 50 Avg interest rate 40 3.3% (1.4%) 30 157 20 10 Term loans Bonds Lease liabilities 0 2023
Slide 28: Dividend proposal from the Board of Directors
Dividend proposal from the Board of Directors 0,76 • The Board of Directors proposes to the Annual Shareholders’ Meeting of Aspo Plc to be held on April 4, 2023 that EUR 0.23 per 0,61 0,61 share be distributed in dividends for the 2022 0,57 0,56 financial year. 0,49 • In addition, the Board of Direc
Slide 29: All financial targets achieved in 2022
All financial targets achieved in 2022 Aspo long-term financial targets Aspo 2022 full-year performance Comparable operating profit of 8.5% Operating profit of 8% (EUR 55.3 million) Net sales growth 5–10% per year Net sales growth of 11% Return on equity of 30.8% Return on equity of over 20% excludi
Slide 30: Strategy execution progressing well
Strategy execution progressing well December September 2022 August 2022 October 2022 December 2022 February 2023 2021 Leipurin acquires ESL Shipping Kauko is divested Telko signed a Leipurin Telko Swedish Kobia AB establishes a Green binding completed a acquires Coaster pool for framework sale and l
Slide 31: Going into 2023
Going into 2023 • Aspo remains in a good position to compound growth and generate resilient cash flow despite uncertainty in the business environment. • ESL Shipping focuses on ESG driven growth together with its key industrial partners. • Telko compensates for the lost business in Russia and Belaru
Slide 32: Guidance for 2023
Guidance for 2023 Aspo Group’s comparable operating profit will be higher than EUR 35 (2022: 55.3) million in 2023. When exiting the selected markets in East, currency translations adjustments of EUR 11.8 million will weaken the operating profit of Aspo, without impacting equity (Calculated based on
Slide 33: Q&A
Q&A 33