Slide 1: Aspo Q1
Aspo Q1 May 3, 2018 CEO Aki Ojanen
Slide 2: Aspo Q1
Aspo Q1 Financial results were Net sales decreased by 3% to Profit for the review period especially affected by the EUR 115.3 million (119.0). was EUR 2.0 million (3.9). exceptional cold weather in The Group's administrative the northern hemisphere. Operating profit decreased by costs increased from
Slide 3: Operating profit
Operating profit Operating profit MEUR Operating profit decreased 28 and was EUR 3.7 million 23.1 (4.4). 24 20.4 Q1 20 16.6 Q1-Q2 16 14.1 Q1-Q3 12 The growth in ESL 9.5 8.1 Q1-Q4 Shipping’s expenses and 8 Group’s administrative 4.4 3.7 4 3.3 costs weakened the operating profit. 0 2016 2017 2018 Q1 M
Slide 4: Long-term financial targets
Long-term financial targets Operating profit, % % Operating profit rate 8 decreased and was 7 3.2% (3.7). Q1 6 Q1-Q2 Target level is 7% by 2020. 5 4.5 4.5 4.6 4.2 Q1-Q3 4 3.8 3.7 3.9 3.4 3.2 3 Q1-Q4 2 1 0 2016 2017 2018 The target level is indicated by the dashed line. Q1 May 3, 2018 4
Slide 5: Long-term financial targets
Long-term financial targets Return on equity, (ROE) % ROE weakened and was 20 7.0% (13.4). 16.717.1 16 14.6 Q1 13.4 14.6 Target level is on average 13.4 Q1-Q2 over 20% by 2020. 12 11.0 8.9 Q1-Q3 8 7.0 Q1-Q4 4 0 2016 2017 2018 The target level is indicated by the dashed line. Q1 May 3, 2018 5
Slide 6: Long-term financial targets
Long-term financial targets Gearing % Gearing increased and was 140 close to the target level, 103% (94). 120 109 115 114 110 104 104 103 Q1 100 90 94 Q1-Q2 Target level is up to 100% by 80 2020. Q1-Q3 60 Q1-Q4 40 20 0 2016 2017 2018 The target level is indicated by the dashed line. Q1 May 3, 2018 6
Slide 7: Net sales by quarter
Net sales by quarter Net sales by quarter MEUR Net sales decreased by 3% 140 132 125 124 127 and were EUR 115 million 116 118 119 (119). 120 115 Q1 Net sales of ESL Shipping 99 100 Q2 and Leipurin increased. 80 Net sales of Telko and Kauko Q3 60 decreased. Q4 The biggest decrease, 17%, 40 was in the
Slide 8: Aspo represents a balanced entity
Aspo represents a balanced entity Net sales by segment Q1 2018 Net sales by market area Q1 2018 6% Finland 37.8 MEUR 18% 15% ESL Shipping 20.5 MEUR 33% Scandinavia 11.8 MEUR Leipurin 30.2 MEUR Baltic countries 15.9 MEUR Telko 57.7 MEUR 28% 50% 26% Kauko 6.9 MEUR Russia, Ukraine ja other CIS- countri
Slide 9: Russia, Ukraine and other CIS countries
Russia, Ukraine and other CIS countries Net sales MEUR In eastern markets, net 50.0 sales decreased by 17% 45.0 42.0 43.2 42.3 from the record high level 38.1 38.9 39.3 40.1 40.0 Q1 in the comparative period. 35.0 32.6 Q2 30.0 26.6 Q3 In eastern markets, Leipurin’s 25.0 net sales decreased slightly
Slide 10: ESL Shipping
ESL Shipping ESL Shipping Johtava merilogistiikan tuottaja irtolasteille Leading marine logistics provider for bulk cargo Q1 May 3, 2018 10
Slide 11: ESL Shipping
ESL Shipping The market prices of dry bulk cargo developed Net sales increased by 8.5% to EUR 20.5 million favorably at the beginning of the review period (18.9). but decreased towards the end. The transportation volume was 2.5 million tons Cargo prices are at a relatively low level. (2.5). Operatin
Slide 12: Ice condition comparison winters 2017 and 2018
Ice condition comparison winters 2017 and 2018 Q1 May 3, 2018 12
Slide 13: ESL Shipping key figures Q1
ESL Shipping key figures Q1 Net sales MEUR Net sales increased by 25 22.6 8.5%. 20.6 20.5 20 18.9 19.5 18.3 Increases in vessel 17.9 Q1 16.2 16.7 capacity and fuel prices. Q2 15 Q3 Transportation volumes in 10 Q4 the steel industry decreased. 5 New customer sectors 0 2016 2017 2018 increased conside
Slide 14: ESL Shipping key figures Q1
ESL Shipping key figures Q1 Operating profit MEUR Operating profit decreased 4.5 4.1 4.1 to EUR 2.6 million (3.0). 4 3.5 3.4 3.3 Q1 2.9 3.0 3.1 3 Q2 2.6 2.5 2.2 Q3 2 Q4 In addition to weather 1.5 conditions, serious threats 1 of strikes caused adverse impact on operations. 0.5 0 2016 2017 2018 Q1 Ma
Slide 15: Baltic Dry Index 2014‒2018
Baltic Dry Index 2014‒2018 Source: Bloomberg Q1 May 3, 2018 15
Slide 16: Leipurin
Leipurin From bread and recipes to a comprehensive selection Q1 May 3, 2018 16
Slide 17: Leipurin
Leipurin National economies and private consumption Net sales increased by 3% to EUR 30.2 million developed positively in both the east and west. (29.4). In Russia, increases in retail volumes Especially machinery operations and bakery continued, but demand for products in higher raw materials in ea
Slide 18: Leipurin key figures Q1
Leipurin key fiqures Q1 Net sales MEUR Net sales increased and were 35 32.9 EUR 30.2 million (29.4). 30.7 30.2 30 28.8 29.4 30.1 29.9 26.2 27.0 Q1 The growth was stongest in 25 the machinery operations and Q2 in eastern markets. 20 Q3 15 The growth of the Finnish raw Q4 material business was limited
Slide 19: Leipurin key figures Q1
Leipurin key fiqures Q1 Operating profit MEUR Operating profit increased 1.6 by 100% and was EUR 0.8 1.4 1.4 million (0.4). Q1 1.2 1.0 Q2 0.8 0.8 Q3 0.7 0.7 0.6 In eastern markets, 0.6 0.5 Q4 operating profit rate of raw 0.4 0.4 0.4 0.4 material business was 0.2 7% (6). 0.0 2016 2017 2018 Q1 May 3,
Slide 20: 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 12.0 600 562 493 534 10.3 10.0 9.6 500 484 478 448 456452 Q1 435 8.3 8.1 8.3 8.2 Q1 8.0 7.7 400 7.2 Q2 Q2 6.1 6.0 Q3 300 Q3 Q4 Q4 4.0 200 2.0 100 0.0 0 2016 2017 2018 2016 201
Slide 21: Telko
Telko Raw material solutions for the industry Q1 May 3, 2018 21
Slide 22: Telko
Telko Telko’s operating environment mainly remained Net sales decreased to EUR 57.7 million (63.6). unchanged or improved in some countries. In addition to weather conditions, net sales Demand was affected by the unusually cold decreased due to the previous decision to weather in eastern markets and
Slide 23: Telko key figures Q1
Telko key figures Q1 Net sales MEUR 80 Net sales decreased and 70 64.9 63.6 65.7 67.3 65.6 were EUR 57.7 million 62.2 63.8 60 57.7 Q1 (63.6). 49.4 Q2 50 40 Q3 30 Q4 Net sales decreased by 20 16% in eastern markets. 10 0 2016 2017 2018 Q1 May 3, 2018 23
Slide 24: Telko key figures Q1
Telko key figures Q1 Operating profit MEUR Operating profit was close 3.5 to the comparative period’s 3.1 3.0 3.0 3.0 level, EUR 2.2 million (2.3). Q1 2.5 2.5 2.4 2.3 2.3 2.3 2.2 Q2 Telko’s relative profitability 2.0 increased and operating Q3 profit rate was 3.8% (3.6). 1.5 Q4 1.0 Operating profit
Slide 25: 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 40.0 1400 35.0 33.5 1200 1155 31.431.5 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 20.0 19.3 Q3 680 Q3 600 15.0 Q4 Q4 400 10.0 5.0 20
Slide 26: Kauko
Kauko Best tools for mobile knowledge work Q1 May 3, 2018 26
Slide 27: Kauko
Kauko The first quarter is traditionally the weakest of Operating profit was EUR -0.6 million (-0.5). all quarters. The operating result was significantly weakened by installation problems in the energy sector resulting from the challenging Net sales decreased to EUR 6.9 million (7.1). winter. Durin
Slide 28: Kauko key figures Q1
Kauko key figures Q1 Net sales Net sales decreased and MEUR were EUR 6.9 million (7.1). 14 12 11.7 11.3 Q1 10 9.5 Q2 8.5 8.3 8.5 8 7.1 Q3 6.7 6.9 6 Q4 4 2 0 2016 2017 2018 Q1 May 3, 2018 28
Slide 29: Kauko key figures Q1
Kauko key figures Q1 Operating profit MEUR 0.6 0.5 Operating profit decreased 0.4 to EUR -0.6 million (-0.5). 0.2 Q1 0.2 0.1 0.0 0.0 Q2 0.0 -0.2 Q3 Q4 -0.4 -0.3 -0.3 Operating profit is not at -0.6 -0.5 the target level. -0.6 -0.8 2016 2017 2018 Q1 May 3, 2018 29
Slide 30: General outlook for the markets in 2018
General outlook for the markets in 2018 • International economy is expected to continue the growth. • General political risks may weaken operating environment Industrial production is or prevent free trade. expected to grow in Aspo’s main markets. • The Russian economy is showing moderate growth, bu
Slide 31: Guidance for 2018
Guidance for 2018 Aspo’s operating profit will be EUR 25-31 million (23.1) in 2018. Q1 May 3, 2018 31
Slide 32: Additional material
Additional material Q1 May 3, 2018 32
Slide 33: Net cash from operating activities
Net cash from operating activities MEUR 20.0 17.4 Net cash from operating 16.2 activities increased to EUR 15.0 -1.2 million (-3.2). Q1 10.0 5.7 Q1-Q2 5.0 3.5 Q1-Q3 0.0 -1.2 Q1-Q4 Net cash from operating -2.5 -5.0 -3.2 activities is usually the -10.0 -7.0 weakest of the year in Q1. -11.0 -15.0 2016
Slide 34: Equity ratio and gearing
Equity ratio and gearing % % 39 140 Gearing was 103% and was 38 at the level of previous 120 37 quarter. 100 36 35 80 34 60 33 40 Cash flow from investing 32 20 activities was low, EUR -0.4 31 million (-6.7). 30 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Equity ratio, % Gearing, % Q1 Ma
Slide 35: Structure of liabilities
Structure of liabilities Interest bearing liabilities Interest bearing liabilities December 31, 2017: 137 MEUR March 31, 2018: 134 MEUR 8% 8% 5% 5% 4% 4% Loans Loans 2% 3% Commercial papers Commercial papers Others Others TyEL pension loan TyEL pension loan Bond Bond 80% 81% Q1 May 3, 2018 35
Slide 36: Maturity of significant loan agreements
Maturity of significant loan agreements MEUR 70.0 At the end of the review period, the average interest 60.0 1.4 1.4 rate of interest bearing 50.0 liabilities was 1.8%. 25.0 TyEL pension loan 40.0 40.0 Bond Hybrid bond (call) 30.0 Revolving credit facilities In 2018, financing 1.4 Loans 20.0 1.4 1.4
Slide 37: Shareholders / allocation
Shareholders / allocation Number of shareholders Distribution of ownership on March 31, 2018 by ownership group, % 9,400 9,236 3% 9,200 9,089 9,060 9,000 8,929 24% Institutions 8,800 Group Executive Committee 8,600 1% Board 8,400 8,150 Private investors 8,200 57% 15% 8,000 Non-domestic & nominee reg