Aspo Plc · OMXHEX:ASPO
Aspo — Q3 2022 Earnings Presentation
36 slides from Aspo's earnings presentation, Nov 2, 2022
Slide 1: Aspo January-September 2022
Aspo January-September 2022 Strong financial performance continued: Q3 comparable operating profit at EUR 13.0 million, net sales up by 8% CEO Rolf Jansson Aspo Q3 2022 November 2, 2022 May 2022 | Credit Investor Presentation
Slide 2: Great continuum to a financially successful year
Great continuum to a financially successful year Q3 2022 Q1-Q3 2022 Net sales, Group total Strong financial performance continued EUR 160.1 million (148.0) EUR 488.0 million (423.2) • Comparable operating profit for Q3 increased to EUR 13.0 million and net sales were up 8% at EUR Comparable operatin
Slide 3: Net sales growth continued despite drop in eastern markets
Net sales growth continued despite drop in eastern markets MEUR Net sales Growth % 220 30% • In Q3, Group net sales increased by 8% to 200 25% EUR 160.1 (148.0) million. 180 20% • For January-September 2022, Aspo’s net sales totaled EUR 488.0 (423.2) million 160 15% showing 15% growth. Target 5-10 %
Slide 4: Profitability target again achieved
Profitability target again achieved MEUR Operating profit Operating profit % 18,0 12% • Comparable operating profit for Q3 reached EUR 13.0 (11.0) million and 16,0 the comparable operating profit rate 10% was 8.1% (7.4%). 14,0 • In January-September, comparable Target 8 % 12,0 8% operating profit wa
Slide 5: Q3 2022 items affecting comparability totaled EUR -0.7 million
Q3 2022 items affecting comparability totaled EUR -0.7 million • Decrease in credit loss provisions related to Telko accounts receivables in Ukraine of EUR 0.5 EUR 0.5 million million Q1-Q3 total EUR -8.0 million • Costs related to the acquisition of Kobia and to Leipurin the withdrawal from Russia
Slide 6: Solid cash flow development continued, investment levels higher due to the Kobia acquisition
Solid cash flow development continued, investment levels higher due to the Kobia acqusition MEUR 70 • Net cash from operating activities was EUR 45.7 (33.3) million for January-September. 60 • The impact of the change in working capital on cash flow was EUR -5.8 (-12.6) million. 50 - Advance payment
Slide 7: Return on equity remained well above the target level
Return on equity remained well above the target level ROE % 35,0 • Return on equity adjusted by the items affecting comparability was 30,0 30.1% (25.3%). Reported ROE was 23.7% (22.0%). 25,0 • Positive ROE development was Target >20% supported by relatively strong 20,0 profitability development of a
Slide 8: Kauko divested on November 1st
Kauko divested on November 1st • On November 1, Aspo concluded the sale of Kauko to Signal Partners. • Signal Partners is a Finnish company specialized in solutions and services related to mobility, information networks and their planning and maintenance. • In December 2021, we announced that the Ka
Slide 9: Positive development in key sustainability targets
Positive development in key sustainability targets • 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 Carbon intensity, last 12m (2025) is 0.30. 0.34 (0.42 in 12/2021) • During the last 12 months,
Slide 10: Aspo business reviews
Aspo business reviews Forerunner and Accelerated growth Towards full potential industrial partner Aspo Q3 2022 November 2, 2022 10
Slide 11: ESL's strong strategic position continues to deliver results
ESL’s strong strategic position continues to deliver results Aspo Q3 2022 November 2, 2022 11
Slide 12: Strong net sales growth continued supported by market conditions, operational excellence and fuel prices
Strong net sales growth continued supported by market conditions, operational excellence and fuel prices MEUR Net sales Growth % • In January-September, net sales increased by 33% from the comparative period, amounting to EUR 182.1 (136.7) million. 70 60% • In contract traffic, demand for ton miles
Slide 13: Despite recent decline, the Baltic Dry indices remain on a good level
Despite recent decline, the Baltic Dry indecies remain on a good level Baltic dry index Baltic handysize index Baltic supramax index Source: Baltic dry Index, banchero costa network October 21, 2022. The Baltic Dry Index provides a benchmark for the price of moving the major raw materials by sea. Th
Slide 14: Pooling partnership established to support growth and profitability
Pooling partnership established to support growth and profitability • During Q3, ESL Shipping achieved a major strategic and structural milestone as it established a long-term Green Coaster pool for energy efficient electric hybrid vessels together with a group of institutional and private investors
Slide 15: Record-high operating profit for Q3 with strong performance in all vessel categories
Record-high operating profit for Q3 with strong performance in all vessel categories MEUR Operating profit Operating profit % 10 20% • In January-September, the comparable operating profit increased to EUR 26.8 (17.0) million and the 9 18% comparable operating profit rate was 14.7% (12.4%). 8 16% •
Slide 16: Telko impacted by Russia, while strong development continues in West
Telko impacted by Russia, while strong development continues in West Aspo Q3 2022 November 2, 2022 16
Slide 17: Net sales down due to shrinking Russian business, Western markets developing favorably
Net sales down due to shrinking Russian business, Western markets developing favorably MEUR Net sales Growth % • In January-September, net sales increased by 7% to EUR 208.2 (195.2) million. Whereas Telko’s net sales decreased by 13% to EUR 80 40% 60.5 (69.6) million in Q3. • Telko’s net sales decre
Slide 18: Add-on acquisition in Norway
Add-on acquisition in Norway • On September 28, Telko announced that it will acquire Norwegian Johan Steenks AS. • Johan Steenks is a distributor of engineering plastics and plastic additives with an established customer base in the Norwegian market and numerous well-known principals. • The company'
Slide 19: Russia exit progressing
Russia exit progressing • In October, Telko signed a binding framework agreement according to which it will sell the share capital of its Russian subsidiary Telko OOO to Russian industrial operator GK Himik. The sales price is approximately EUR 9.5 million. Rights to Telko's name and trademarks are
Slide 20: Operating profit declined due to Russian impact
Operating profit declined due to Russian impact MEUR Operating profit Operating profit % 9 12% • Telko’s comparable operating profit for January-September was EUR 19.5 (16.0) million, and its comparable operating profit rate was 9.4% (8.2%). 8 10% • Telko’s comparable operating profit for Q3 was EUR
Slide 21: Structural changes affecting financial figures, Kobia integration underway
Structural changes affecting financial figures, Kobia integration underway Aspo Q3 2022 November 2, 2022 21
Slide 22: Net sales growth due to increasing raw material prices
Net sales growth due to increasing raw material prices MEUR Net sales Growth % • In January-September, Leipurin’s net sales increased by 10% and were 40 20% EUR 89.3 (81.4) million. - In Q3, net sales in region Finland grew by 15% and in the Baltic 35 15% region by 18% ,whereas net sales in region E
Slide 23: Kobia integration well underway
Kobia integration well underway • In May, Leipurin agreed to purchase the entire share capital of the Swedish bakery industry distributor Kobia AB from the Swedish Abdon Group. • Through the acquisition, Leipurin further strengthens its position as a leading player in the Baltic Sea region, with inc
Slide 24: Underlying profit development of Leipurin is positive
Underlying profit development of Leipurin is positive MEUR Operating profit Operating profit % 1,2 6% • Leipurin’s Q3 comparable operating profit was EUR 0.6 (0.6) million and comparable operating profit rate 1.9% (2.2%). Target 5 % 1 5% • Leipurin’s comparable operating profit for January- Septembe
Slide 25: New Managing Director of Leipurin starting Jan 2nd 2023
New Managing Director of Leipurin starting Jan 2nd 2023 • Miska Kuusela was appointed Managing Director of Leipurin on October 25. • He joins 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 26: Aspo's financial position and guidance
Aspo’s financial position and guidance Aspo Q3 2022 November 2, 2022 26
Slide 27: Strong balance sheet support strategy execution
Strong balance sheet support strategy execution Equity ratio % Gearing % 40 200 • Equity ratio and gearing continued at strong levels during Q3 and stood at 35 180 35.8% and 97,6% Gearing target <130 % • The balance sheet was strengthened 30 160 as a result of improved profitability and a new hybrid
Slide 28: 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- bearing debt total 21 70 EUR 160.3 million 15 60 50 Avg interest rate 40 1.8% 30 166 20 10 Term loans Bonds Lease liabilities 0 2022 2023 20
Slide 29: Board of Directors decided on the payment of the second dividend installment
Board of Directors decided on the payment of the second dividend installment 0,76 • On November 2, the Board of Directors of Aspo Plc decided on the second dividend distribution of EUR 0.22 per share, based on 0,61 the authorization of the Annual Shareholders' 0,57 0,56 Meeting on April 6, 2022. 0,4
Slide 30: Guidance for 2022
Guidance for 2022 (issued on October 17, 2022) Aspo Group's comparable operating profit will be EUR 52–57 (EUR 42.4) million in 2022. Aspo Q3 2022 November 2, 2022 30
Slide 31: In an excellent position for Q4 and beyond
In an excellent position for Q4 and beyond • Aspo’s strong financial performance continued in Q3, boosted by yet another record quarter by ESL Shipping. • Q3 saw significant strides in our strategy execution: establishing a shipping pool, completion of Leipurin’s milestone acquisition of Kobia AB an
Slide 32: Q&A
Q&A Aspo Q3 2022 November 2, 2022 32
Slide 33: Upcoming events
Upcoming events Full-year 2022 report on February 15, 2022 www.aspo.com Twitter: @AspoPlc Aspo Q3 2022 November 2, 2022 33
Slide 34: Appendix
Appendix Aspo Q3 2022 November 2, 2022 34
Slide 35: Key figures
Key figures Q1-Q3 Q1-Q3 Q3 2022 Q3 2021 2021 2022 2021 Net sales, Group total, MEUR 160.1 148.0 488.0 423.2 586.4 Net sales from continuing operations, MEUR 157.8 144.6 479.6 413.3 573.3 ESL Shipping, operating profit, MEUR 9.7 7.1 27.9 17.0 26.8 Telko, operating profit, MEUR 4.2 5.9 15.0 16.0 20.4
Slide 36: Shareholders
Shareholders Biggest shareholders September 30, 2022 % of shares Havsudden Oy Ab 10.38 AEV Capital Holding Oy 10.36 Varma Mutual Pension Insurance Company 4.53 Vehmas Tapio 4.06 Personnel fund Non-domestic and nominee Nyberg Gustav 2.87 registrations 0.5% Ilmarinen Mutual Pension Insurance Company 2