2009-02-10 07:30:23 CET
2009-02-10 07:31:13 CET
REGULATED INFORMATION
Aspo - Financial Statement Release
ASPO 2008: Aspo shows strong net sales growth and record earnings per share
ASPO Plc STOCK EXCHANGE BULLETIN February 10, 2009 at 8:30
a.m.
ASPO GROUP ANNUAL ACCOUNTS BULLETIN
January-December, continuing operations
-The Group's net sales amounted to EUR 358.2 million (MEUR 208.9);
the net sales for discontinued operations amounted to EUR 45.1
million (EUR 57.7 million)
-Operating profit totaled EUR 14.1 million (EUR 15.1 million and a
sales gain of EUR 10.2 million in addition)
-Profit before taxes amounted to EUR 9.5 million (EUR 14.1 and a
sales gain of EUR 10.2 million in addition)
-Profit after taxes was EUR 7.0 million (EUR 8.2 million and a sales
gain of EUR 10.2 million in addition)
-Earnings per share EUR 0.27 (EUR 0.42 and a sales gain representing
EUR 0.29)
-The Group's earnings per share totaled EUR 0.60 (EUR 0.59)
-The Group's return on investment (ROI) was 18.5% (25.7) and the
return on equity (ROE) 24.1% (25.4)
-The Board's dividend proposal is for EUR 0.42 (EUR 0.42)
October-December, continuing operations
-The Group's net sales increased 85% to EUR 100.2 million (EUR 54.2
million)
-Operating profit totaled EUR 1.2 million including non-recurring
costs of EUR 0.3 million (EUR 3.8 million)
-Profit before taxes was EUR -0.4 million (EUR 3.7 million)
-Interest-bearing net liabilities totaled EUR 82.4 million (EUR 20.5
million) at the end of the review period
-In 2009, the focus on operations will be to improve profitability
-Aspo has the prerequisites to improve the result of continuing
operations
-The earnings per share are expected to be lower than in 2008
KEY FIGURES 2008 2007
Continuing operations
Net sales, MEUR 358.2 208.9
Operating profit, MEUR 14.1 25.3*
Share of net sales, % 3.9 12.1
Profit before tax, MEUR 9.5 24.3*
Share of net sales, % 2.7 11.6
Personnel at the end of period 821 390
Earnings per share, EUR, continuing operations 0.27 0.71
Earnings per share, EUR, discontinued operations 0.33 -0.12
Earnings per share, EUR, total 0.60 0.59
EPS adjusted for dilution, EUR, continuing operations 0.26 0.67
EPS adjusted for dilution, EUR,
discontinued operations 0.30 -0.11
EPS adjusted for dilution, EUR, total 0.56 0.56
Comparable earnings per share, EUR,
continuing operations 0.27 0.41
Comparable earnings per share, EUR,
discontinued operations -0.03 -0.12
The Group on the whole
Equity per share, EUR 2.56 2.43
Equity ratio, % 30.6 45.1
Gearing, % 124.9 32.4
*) including a sales gain of EUR 10.2 million
Aki Ojanen, Aspo's CEO:"Aspo's business model has proven itself. At the beginning of the
year we did not believe that it would be realistic to expect our
earnings per share to reach the 2007 level - we had sold the M/S
Arkadia in 2007, generating a sales gain of EUR 10.2 million. The
acquisition carried out in May increased our net sales and enabled a
change in the Group structure. The new business portfolio is even
stronger and the sustainability of our businesses is even better than
before in economic downturns."Financially the acquisition had a positive effect already in the
first operating year. Our perseverance in developing Autotank Group
was awarded with a successful divestment in June. The new Aspo is a
clear entity with business operations that focus on trade and
logistics in the growing Baltic Sea markets."The beginning of 2008 was challenging due to high raw material and
oil prices, and October-December was challenging due to a steep drop
in prices. I am particularly glad about the development possibilities
of our businesses and the cost savings that the new organization will
bring already in 2009."Aspo Group's earnings per share was good, EUR 0.60."
ASPO AS A COMPANY
Aspo is a conglomerate that owns and develops businesses in the
Baltic Sea region focusing on demanding B-to-B customers. The aim of
our strong corporate brands - ESL Shipping, Leipurin, Telko and
Kaukomarkkinat - is to be the market leaders in their sectors. They
are responsible for their own operations, customer relationships and
the development of these. Together they generate Aspo's goodwill.
Aspo's Group structure and business operations are developed
persistently without any predefined schedules.
OPERATIONAL PERFORMANCE
The year 2008 was diverse. The strong increase in prices and demand
seen in early 2008 collapsed in the fall as a result of an
international economic crisis with a steep decline in oil and other
petrochemical products. The raw material prices for food industry
also peaked during spring but the decrease has been less dramatic.
Sea freight prices on the Baltic Sea made a downturn during the fall.
Even though ESL Shipping has run on short capacity all year due to
the sale of a vessel, its annual operational result remained at last
year's level. Leipurin and Kaukomarkkinat, which have been included
in Aspo's figures since May, increased their net sales and improved
their profitability. Telko's result development was good until the
steep drop in oil prices caused by the financial crisis. Demand
decreased heavily in all of Telko's market areas in the last quarter.
The company was also forced to record non-recurring foreign currency
losses from Ukraine and Russia and make write-downs of inventories.
The acquisition of Kauko-Telko in the spring enabled a
target-oriented reorganization. The acquisition lifted Aspo to a new
size class, the chemical and plastics business was strengthened and
traditional food industry companies formed a new business. The
acquisition enabled the disposal of Autotank Group generating a sales
gain of EUR 8.2 million. The organization was renewed and grouped
into independent business areas: ESL Shipping, Leipurin, Telko and
Kaukomarkkinat. The Finnish and Swedish adhesive tape operations and
Far Eastern sourcing services were divested because they do not fit
the new organization. A sales gain of EUR 1.2 million was recorded
from the divestments. In order to strengthen its fleet, ESL Shipping
repurchased M/S Eira for EUR 14.7 million. The ship has been built
for Baltic Sea conditions and has been leased by ESL Shipping since
its completion, with a so-called bareboat agreement.
The Group's overall costs in 2008 were unusually high. The result was
burdened by costs related to corporate reorganization, integration
and rationalization of overlapping operations. The increase in
interest-bearing liabilities as a result of financing the acquisition
led to an increase in interest expenditure. Despite the exceptional
foreign currency losses in late 2008, the Group reached last year's
earnings per share of EUR 0.59. The strong operational cash flow has
enabled stable debt repayment and strengthening of equity since the
acquisition.
ESL Shipping
10-12/08 10-12/07 Change 2008 2007
Net Sales, MEUR 20.9 22.2 -1.3 84.1 85.1
Operating Profit, MEUR 4.2 4.1 0.1 15.6 25.1*
Personnel 240 239 1 240 239
*) including a sales gain of EUR 10.2 million
The year was challenging for the shipping company and due to
decreased capacity it was not realistic to expect its result to reach
the 2007 level. M/S Arkadia was sold in 2007, M/S Tali was docked
until July due to an average in February, and M/S Mazdy's long-term
time-charter agreement ended in March. Thanks to skilful tonnage
operation; ESL Shipping still managed to reach an excellent result.
Due to hedging in accordance with our operating model, the changes in
fuel prices did not have a significant effect on the result.
The change in the general market situation in the fall affected
particularly the cargo volume for steel industry. Our strong position
in Russian coal transports has so far been able to compensate for the
decreased volumes in steel industry.
Leipurin
10-12/08 10-12/07 Change 5-12/08 2007
Net Sales, MEUR 27.1 27.1 69.3
Operating Profit, MEUR 1.1 1.1 3.1
Personnel 168 168 168
Leipurin was formed by merging the traditional Leipurien Tukku
(LT-Tukku), LT-Kone and LT-Telko. It focuses on flavor and textured
development for the baking, meat and dairy industries and on raw
material and machinery deliveries for the baking industry. Leipurin
operates in Finland, Poland, the Baltic countries and Russia.
The raw material prices in food industry rose to record levels in
2008 but also made a downturn in the fall. Machinery deliveries to
bakeries focused on Finland, Russia and Estonia.
Leipurin reached better than estimated operating result. The result
for the last quarter was good despite the foreign currency loss
caused by the Russian ruble.
Telko
10-12/08 10-12/07 Change 2008 2007
Net Sales, MEUR 40.4 32.0 8.4 172.7 123.8
Operating Profit, MEUR -2.5 0.6 -3.1 1.0 3.1
Personnel 230 132 98 230 132
Aspokem and Kauko-Telko's industrial raw material operations were
combined at the beginning of May 2008. Since the acquisition, Telko's
position has strengthened in Northern Europe in particular in
engineering plastics that have higher unit prices. In addition to
Finland, Telko operates in Scandinavia, the Baltic countries, Poland,
Ukraine and Russia. The Hamina terminal that specializes in logistics
services for Russian liquid chemicals has strengthened Telko's
position further on the Russian markets. In Finland and Scandinavia
operations suffered from a steep decline in volumes and prices in the
last quarter.
Telko's loss in the last quarter was caused by lower volumes, storage
losses caused by price decreases and foreign currency losses.
Other Operations/Kaukomarkkinat
10-12/08 10-12/07 Change 2008 2007
Net Sales, MEUR 11.8 11.8 32.1
Operating Profit, MEUR -1.6 -0.9 -0.7 -5.6 -2.9
Personnel 183 11 172 183 10
Other operations include Aspo's Group administration and
Kaukkomarkkinat's business operations. Kaukomarkkinat focuses on
improving energy efficiency and project sales for process industry.
The high energy price and the demands to increase efficiency in
energy use have boosted the overall markets and strengthened
Kaukomarkkinat's position on the Finnish heat pump markets. The
Chinese unit made several project deliveries and generated a good
result. Kaukomarkkinat's sourcing services and packaging and adhesive
tape business were sold during the year.
Kaukomarkkinat increased its net sales and improved its
profitability.
NET SALES
The net sales of Aspo Group's continuing operations increased by EUR
149.3 million (71.5%) to EUR 358.2 million (208.9). The Group's
direct exports together with the net sales of foreign subsidiaries
amounted to EUR 173.7 million (131.7).
Net Sales by Division, MEUR
10-12/08 10-12/07 Change 2008 2007
ESL Shipping 20.9 22.2 -1.3 84.1 85.1
Leipurin 27.1 27.1 69.3
Telko 40.4 32.0 8.4 172.7 123.8
Other operations 11.8 11.8 32.1
Continuing operations total 100.2 54.2 46.0 358.2 208.9
Discontinued operations 1.9 17.2 -15.3 45.1 57.7
Total 102.1 71.4 30.7 403.3 266.6
Net Sales by Market Area, MEUR
10-12/08 10-12/07 Change 2008 2007
Finland 50.4 31.2 19.2 191.1 127.7
Nordic countries 12.2 8.2 4.0 47.5 33.0
Baltic countries 12.2 4.5 7.7 32.8 15.9
Russia, etc. 25.4 10.3 15.1 86.8 32.3
Continuing operations total 100.2 54.2 46.0 358.2 208.9
Discontinued operations 1.9 17.2 -15.3 45.1 57.7
Total 102.1 71.4 30.7 403.3 266.6
The significance of Russia and other CIS markets in Aspo's business
will be further emphasized when ESL Shipping's raw material
transports from Russia are included in the Russian market area. When
the calculation is carried out this way, the distribution of net
sales between Finland and Russia is as follows:
10-12/08 10-12/07 Change 2008 2007
Finland 43.7 22.4 21.3 161.6 91.9
Russia, etc. 32.2 19.1 13.1 116.3 68.1
EARNINGS
The operating profit for Aspo Group's continuing operations was EUR
14.1 million (EUR 25.3 million including a EUR 10.2 million sales
gain). The operating profit includes EUR 1.1 million in non-recurring
costs.
The operating profit of ESL Shipping totaled EUR 15.6 million (EUR
25.1 million including a sales gain of EUR 10.2 million). The
comparable operating profit grew by EUR 0.7 million.
Leipurin Group's operating profit amounted to EUR 3.1 million clearly
exceeding the estimate. Leipurin is included in Aspo Group's figures
from the beginning of May.
Telko's operating profit decreased by EUR 2.1 million to EUR 1.0
million (3.1). The operating profit was depressed by a heavy decrease
in demand in late 2008 and the subsequent drop in market prices and
rapid devaluation of currencies in the main market areas outside the
euro area. The operating profit is mainly generated in Russia. The
acquired operations are included in Telko's figures from the
beginning of May.
Other operations include Kaukomarkkinat and Aspo's Group
administration. The operating profit for other operations was EUR 5.6
million negative, the figure includes EUR 7.7 million in
administrative costs. Nearly half of the additional costs were
generated as a result of the acquisition and overlapping in
operations.
Operating Profit by Division, MEUR
10-12/08 10-12/07 Change 2008 2007
ESL Shipping 4.2 4.1 0.1 15.6 25.1*
Leipurin 1.1 1.1 3.1
Telko -2.5 0.6 -3.1 1.0 3.1
Other operations -1.6 -0.9 -0.7 -5.6 -2.9
Continuing operations total 1.2 3.8 -2.6 14.1 25.3*
Discontinued operations 0.6 -1.1 1.7 9.6 -1.5
Total 1.8 2.7 -0.9 23.7 23.8*
*) including a sales gain of EUR 10.2 million
Earnings per share
Earnings per share for continuing operations was EUR 0.27 (EUR 0.71
with the sales gain representing EUR 0.29).
The Group's earnings per share totaled EUR 0.60 (0.59) and the
diluted earnings per share EUR 0.56 (0.56). Equity per share was EUR
2.56 (2.43).
INVESTMENTS
The investments of the Group's continuing operations amounted to EUR
116.7 million (9.6). Of this, the acquisition of Kauko-Telko Oy's
stock represented EUR 96.2 million. This is the largest investment
the Group has ever made. The acquisition price includes EUR 18.0
million in cash. A majority of the remaining investments, EUR 19.7
million, was used to repurchase ESL Shipping's M/S Eira from SEB
Leasing Oy and advance payments for vessel acquisitions.
Investments by Division, acquisitions excluded, MEUR
10-12/08 10-12/07 Change 2008 2007
ESL Shipping 0.2 0.2 18.8 3.8
Leipurin 0.1 0.1 0.1
Telko 0.1 0.9 -0.8 0.4 5.7
Other operations 0.4 0.4 1.2 0.1
Continuing operations total 0.8 0.9 -0.1 20.5 9.6
Discontinued operations 0.7 -0.7 0.6 1.4
Total 0.8 1.6 -0.8 21.1 11.0
FINANCING
The Group's financing position changed considerably during the year.
The purchase of Kauko-Telko Oy's entire stock and the repurchase of
the Eira vessel increased the amount of interest-bearing debt.
Divestment of the Autotank Group and other smaller operations
together with the strong operational cash flow enabled repayment of
some interest-bearing debt in late 2008. At the end of the period the
Group had EUR 12.6 million (13.1) in liquid assets. There was a total
of EUR 95.0 million (33.6) in interest-bearing liabilities on the
consolidated balance sheet at the end of the period. Interest-free
liabilities totaled EUR 43.6 million (34.0).
Aspo Group's net gearing was 124.9% (32.4), return on equity was
24.1% (25.4) and the equity ratio adjusted for deferred tax
liabilities was 30.6% (45.1).
The Group's cash flow strengthened considerably towards the end of
the year. In January-September the operational net cash flow was EUR
17.6 million and in January-September it was EUR 30.9 million. Aspo
Plc and its key financing banks have signed binding financial limits
for a total of EUR 120 million. Credit withdrawn within the framework
of these financial limits amounted to EUR 38.5 million at the end of
the period.
RISKS AND RISK MANAGEMENT
The rapid and deep economic recession in late 2008 caused widespread
risks in our market areas. The best tool in risk management is Aspo's
healthy business and its broad expertise in processes. The economic
recession in our neighboring areas and in particular the rapid
weakening in the economic basis in several countries caused risks as
exchange rates turned unfavorable for us, the global market prices of
products weakened and customers' solvency decreased. Losses were
recorded from exchange rates and value loss in inventories but no
major credit losses were generated.
Risk management is part of Aspo's internal supervision. The aim is to
detect, analyze and limit the operational threats and risks. All
internal and external factors that affect Aspo's ability to reach
operational targets and profitability have been determined as risks.
Risks are mapped, categorized and assessed systematically and
decisions on required actions are made. In terms of risks, the risk
management principles and main content have been defined in Group
level policies and guidelines. Accident risks are covered with
appropriate insurance policies.
Risks were constantly monitored and particularly in connection with
the acquisition when operations were integrated into Aspo Group. No
significant risks were detected in this area.
The near-term operational risks focus on the effects of the global
economic recession. Particular attention is paid to maintaining
customer relationships and the validity of contracts.
In operational risks, the main risks in terms of likelihood and
effect are connected to the permanence of customer relationships,
equipment sufficiency, maintaining the balance level and key
personnel. Therefore, risk management in Aspo does not simply mean
maintaining sufficient insurance coverage but it is an integral part
of continuous operations and is built into all operational processes.
Aspo Group's financing and financial risk management are handled
centrally by the parent company in accordance with the financial
policy approved by the Board of Directors.
PERSONNEL
At year-end, the Aspo Group employed 827 (699) personnel and an
average of 882 (691) during the year. Office staff represented 553
(327) and non-office workers 329 (364) of the total. The parent
company employed 14 (11) office staff at year-end and 13 (11) on
average during the year.
Of Aspo Group personnel, 64% (57) work in Finland, 41% (29) in other
Nordic countries, 6% (5) in the Baltic countries, and 14% (9) in
Russia. Men represented 67% (70) and women 33% (30) of total
personnel. In the Aspo Group, 99% (99) of employment contracts were
full-time. During the year, 66 (86) new employment contracts were
signed. Total wages and salaries paid to personnel in 2008 amounted
to EUR 35,443,649 (27,219,384).
Average Personnel by Division
2008 2007
ESL Shipping
Office staff 30 28
Crew members 199 211
Total 229 239
Leipurin
Office staff 98
Non-office workers 26
Total 124
Telko
Office staff 187 122
Non-office workers 17 10
Total 204 132
Other operations
Office staff 138 11
Non-office workers 2
Total 140 11
Discontinued operations
Office staff 100 166
Non-office workers 85 143
Total 185 309
TOTAL 882 691
Rewards and Incentives
The Aspo Group has introduced a profit-sharing scheme and a personnel
fund, which at this point cover all of Aspo Group personnel working
in Finnish subsidiaries. Part of the Group's earnings is placed in
the personnel fund as a profit bonus. The objective is for the fund
to use the majority of the profit bonuses to acquire Aspo Plc shares.
The long-term objective is to make the personnel one of the company's
key shareholder groups. Aspo's business areas pay part of their
earnings as bonuses to the personnel. The calculation principles for
the bonuses are decided on by business area.
In January 2006, Aspo Plc's Board of Directors decided to introduce a
share price-linked incentive scheme for key personnel, in which any
bonus is based on the performance of the company's share in the next
three years. The scheme covers approximately 30 Aspo Group executives
and key employees.
RESEARCH AND DEVELOPMENT
Aspo Group's R&D focuses mainly on developing operations, procedures
and production technology without a separate organization, which
means that the development investments are included in normal
operational costs and are not itemized.
ENVIRONMENT
Aspo Group's regular operations do not have any significant
environmental impact. The Group companies follow Aspo's
environmental policy with the main principle of continuously
improving operations. Throughout our operations we support the
principles of sustainable development.
Aspo looks after the environment by taking initiatives and
continuously monitoring the laws and recommendations connected to its
operation and any revisions to these. We want to be pioneers in all
of our operations and also anticipate future developments in
environmental regulations.
MANAGEMENT AND AUDITORS
At Aspo Plc's Annual Shareholders' Meeting held on April 10, 2008,
Matti Arteva, Esa Karppinen, Roberto Lencioni and Kari Stadigh were
re-elected to the Board of Directors for a term of one year. Risto
Salo and Gustav Nyberg were elected as new members to the Board of
Directors. Kari Stadigh has acted as the Chairman and Matti Arteva as
Vice-Chairman of the Board.
In 2008, the Board of Directors held 13 meetings, 6 of which were
teleconferences. The average participation rate was 99%.
Gustav Nyberg has acted as the company's CEO since October 1999, Aki
Ojanen as the COO and Deputy CEO since October 1, 2007.
The company auditor is PricewaterhouseCoopers Oy, an authorized
public accountant firm with Jan Holmberg as the auditor in charge.
BOARD AUTHORIZATIONS
The Annual Shareholders' Meeting of 2008 authorized the Board of
Directors to decide on a share issue, through one or several
instalments, by transferring an aggregate maximum number of 1,158,250
treasury shares.
The shares will be used to finance any acquisitions or other
transactions, or for other purposes to be decided on by the Board of
Directors. The authorization includes the right for the Board to
decide on the terms and conditions applicable to the share issue, as
well as the right to decide on a directed share issue deviating from
the shareholders' pre-emptive right on conditions laid down by law.
The shareholders further authorized the Board to use funds included
in distributable profit to repurchase a maximum of 400,000 company
shares irrespective of the shareholders' holdings. The shares will be
purchased through public trading organized by NASDAQ OMX Helsinki at
the going price under the terms stated in the regulations of NASDAQ
OMX Helsinki.
The shares will be acquired to finance any acquisitions or other
transactions, for the balancing of the financial risk in the
company's share-based incentive scheme or for other purposes to be
decided on by the Board of Directors. The Board may not exercise the
authorization if, after the acquisition, the company or its
subsidiary were to possess or have as a pledge more than ten (10)
percent of the company's stock.
The authorization is valid until the Annual Shareholders' Meeting of
2009, but no more than 18 months from the approval at the
Shareholders' Meeting.
Under the authorization granted at the Shareholders' Meeting, during
fiscal 2008, the Board of Directors decided to dispose of 14,630 Aspo
Plc shares within the context of the company's management incentive
program. The disposal price was the fair value at the time of
disposal based on public trading.
In its meeting on August 21, 2008, the Board of Directors decided to
repurchase a maximum of 400,000 shares through public trading on
NASDAQ OMX Helsinki at the current market price at the time of
acquisition according to the terms stated in the regulations of
NASDAQ OMX Helsinki. A total of 144,390 shares were repurchased
during the fiscal period. The average purchase price of the shares
was EUR 5.64. The total purchasing cost of EUR 861,363.49 was
deducted from the unrestricted equity account.
SHARES AND SHAREHOLDERS
Aspo Plc's registered share capital on December 31, 2008, was EUR
17,691,729.57 and the total number of shares was 26,406,063. The
company's own shareholding was 620,000 shares, accounting for 2.35
percent of Aspo Plc's stock.
Aspo Plc has one share series. Each share entitles its holder to one
vote at the Annual Shareholders' Meeting. The company's shares are
quoted on NASDAQ OMX Helsinki in the medium-sized companies category
and under the GICS classification Industrials.
During 2008, a total of 3,403,573 Aspo Plc shares were traded on
NASDAQ OMX Helsinki at EUR 19.8 million, or 12.9% of the shares
changed owners. The share reached a high of EUR 6.90 and a low of EUR
3.57 during the period. The average price was EUR 5.81 and the
closing price was EUR 4.03. The market value of the share capital at
the year-end, less treasury shares, was EUR 103.9 million.
CONVERTIBLE CAPITAL NOTES
Aspo Plc has issued Convertible Capital Notes worth EUR 15,512,500.
The validity period for the notes runs from June 4, 2004 to June 4,
2009. The notes will be repaid in a single instalment on June 4, 2009
provided that the repayment conditions specified in chapter 5 of the
Companies Act and in the terms and conditions of the Convertible
Capital Notes are met. The notes carry a fixed 5% interest rate. Aspo
is entitled to extend the loan period by a maximum of five years. If
the loan period is extended, the fixed interest rate for the loan is
8%.
If the loan is not repaid on the due date, interest will be paid on
the unpaid principal at a total of two percentage points above the
confirmed annual interest rate.
The capital notes can be converted into Aspo stock. Each EUR 500 note
entitles the holder to covert the note into 84 Aspo Plc shares. The
conversion rate is EUR 5.95.
During the year, convertible capital notes were used to subscribe for
7,560 shares, and the share capital was correspondingly increased by
EUR 5,065.20.
EVENTS AFTER THE REPORTING PERIOD
Group management
Aki Ojanen, eMBA, who has worked as Aspo Plc's COO since October 1,
2007 started working as Aspo Plc's CEO on January 1, 2009.
Simultaneously, Gustav Nyberg, M.Sc. (Econ.), eMBA, who has worked as
Aspo's CEO since 1999, became the full-time Chairman of Aspo's Board
of Directors.
Arto Meitsalo, M.Sc. (Econ.) started working as Aspo Plc's CFO on
January 1, 2009. He previously worked as Kauko-Telko Oy's CFO and
acting CEO.
Flagging
Henrik B. Nyberg announced on January 19, 2009 that his share of Aspo
Plc's share capital and votes fell below 10%.
ORGANIZATION
Harri Seppälä was appointed Aspo's Group Treasurer on April 1, 2008
and Jamima Löfström was appointed corporate communications manager on
September 1, 2008. Toni Santalahti started working as the Group's
lawyer on January 1, 2009.
DIVIDEND PROPOSAL
At the Annual Shareholders' Meeting scheduled for March 31, 2009, the
Board will propose that a dividend of EUR 0.42 be distributed for
fiscal 2008 on shares outstanding and that no dividend be paid for
treasury shares.
OUTLOOK FOR 2009
The general economic uncertainty in the Baltic Sea region continues.
The basic industrial demand is expected to be lower than in 2008.
Consumers' confidence in their own economy has weakened, which is
expected to increase the demand for basic food products.
Aspo Group's new structure creates a good basis for growth in
continuing operations. Administrative costs are expected to be
clearly lower than in 2008. The targeted level in cost efficiency
will be reached in the last quarter as the Finnish operations move
into joint premises.
Aspo Group's aim is to improve its profitability and the Group has
the prerequisites to improve the result of continuing operations.
ESL Shipping
The shipping company's capacity has decreased since 2007. We expect
that the first of the vessels ordered from India will be completed in
the fall of 2009. A majority of the 2009 transport capacity has been
covered with long-term agreements, but the transport volumes of the
steel and construction industry customers in particular will decrease
from 2008. The Baltic Sea freight prices made a downturn in the fall
of 2008. It is not realistic to expect that ESL Shipping's result
would reach the 2008 level.
Leipurin
Organic growth is expected to continue. Leipurin will continue to
establish itself in Russian megalopolis and possibly in Ukraine
during 2009. The new offices create a good basis for several years of
growth. We expect Leipurin to generate a good result.
Telko
Telko will focus on improving its result and profitability without
any net sales target. If Telko is successful in directing its
operations, the result is expected to improve from 2008.
Kaukomarkkinat
The main target of the operation is to grow at least as much as
general market growth in the Finnish air-source heat pump markets.
Project sales are expected to remain at last year's level.
Audio-visual and giant screens operations are developed as a new
growth area, but its earnings effect will not be substantial in 2009.
Operational Risks
The general economic situation affects the industrial demand in the
Baltic Sea region. Of customer segments, basic industry especially
has announced that it will reduce production from 2008. Changes in
demand in developing markets are more difficult to estimate. We
expect that in Russia, in particular, markets will, despite the
recession, develop so that Russia's share of Aspo Group's operations
will remain intact, or increase. The risk of a recession in the
financial markets and the economy is reflected in the exchange rates
in our neighboring areas (Russia, Ukraine, the Baltic region and
Poland) and possibly also in customers' solvency.
Helsinki February 10, 2009
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
10-12/2008 10-12/2007
MEUR % MEUR %
Net sales 100.2 100.0 54.2 100.0
Other operating income 0.4 0.4 0.1 0.2
Depreciation and write-downs -3.0 -3.0 -2.4 -4.4
Operating profit 1.2 1.2 3.8 7.0
Financial income and expenses -1.6 -1.6 -0.1 -0.2
Profit before taxes -0.4 -0.4 3.7 6.8
Profit for the period, continuing operations
0.5 0.5 2.7 5.0
Profit for the period, discontinued operations
0.3 -2.0
Profit for the period 0.8 0.7
Profit attributable to shareholders
0.8 0.6
Minority interest 0.1
1-12/2008 1-12/2007
MEUR % MEUR %
Net sales 358.2 100.0 208.9 100.0
Other operating income 1.6 0.4 10.4 5.0
Depreciation and write-downs -10.8 -3.0 -9.4 -4.5
Operating profit 14.1 3.9 25.3* 12.1
Financial income and expenses -4.6 -1.3 -1.0 -0.5
Profit before taxes 9.5 2.7 24.3 11.6
Profit for the period, continuing operations
7.0 1.9 18.4 8.8
Profit for the period, discontinued
operations 8.5 -3.0
whereof the gain on the sale of the Autotank
group 8.2
Profit for the period 15.5
Profit attributable to shareholders
15.5 15.3
Minority interest 0.1
*) including a sales gain of EUR 10.2 million
ASPO GROUP BALANCE SHEET 12/08 12/07 Change
MEUR MEUR %
Assets
Non-current assets
Intangible assets 17.0 2.6 553.8
Goodwill 40.4 10.1 300.0
Tangible assets 69.1 47.3 46.1
Available-for-sale assets 0.2 0.2
Long-term receivables 1.1 2.5 -56.0
Shares in associated companies 0.9 1.1 -18.2
Total non-current assets 128.7 63.8 101.7
Current assets
Inventories 33.4 24.0 39.2
Sales and other receivables 43.3 40.1 8.0
Cash and bank deposits 12.6 13.1 -3.8
Total current assets 89.3 77.2 15.7
Assets classified as
held for sale 0.7
Total assets 218.7 141.0 55.1
Shareholders' Equity and Liabilities
Shareholders' equity
Share capital 17.7 17.7
Other shareholders' equity 48.3 45.3 6.6
Shareholders' equity attributable to equity
holders
of the parent 66.0 62.8 5.1
Minority interest 0.2
Long-term liabilities 50.2 25.7 95.3
Short-term liabilities 102.0 52.3 95.0
Liabilities classified as
held for sale 0.5
Total shareholders' equity
and liabilities 218.7 141.0 55.1
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A = Share Capital
B = Premium Fund
C = Fair Value Fund
D = Other Funds
E = Repurchased Shares
F = Translation Difference
G = Retained Earnings
H = Total
I = Minority Interest
J = Total Shareholders' Equity
MEUR A B C D E F G H I J
Balance at
12/31/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0
Translation
differences -1.5
Transfer to the original
value of
hedged funds 1.0
Increase in
hedging reserve -0.4
Share of
deferred taxes 0.1
Net profit for
the period 15.5 0.0
Dividend payment -10.8
Share repurchase -0.8
Share disposal 0.1
Net result recognized
directly to equity -0.0
Change in minority interest -0.2
Balance at
12/31/2008 17.7 4.3 -0.3 0.5 -3.7 -1.5 49.0 66.0 0.0 66.0
Balance at
12/31/2006 17.5 2.5 -0.1 0.2 -1.8 0.1 39.7 58.1 0.1 58.2
Translation
differences -0.1
Increase in
hedging reserve -1.2 0.0
Share of
deferred taxes 0.3 0.0
Net profit for
the period 15.2 0.1
Dividend payment -10.6
Share repurchase -1.7
Share disposal 0.3 0.5
Conversion of
convertible bond
to shares 0.2 1.8
Balance at
12/31/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0
ASPO GROUP CASH FLOW STATEMENT 2008 2007
MEUR MEUR
Net operational cash flow 30.9 8.6
Investments
Investments in tangible and
intangible assets -22.0 -5.7
Gains on the sale of tangible
and intangible assets 0.7 11.1
Purchases of subsidiary shares -78.2 -4.7
Sale of subsidiary shares 28.8
Total cash flow from investments -70.7 0.7
Financing
Share acquisition -0.8 -1.6
Share disposal 0.1
Change in short-term borrowings 16.9 8.3
Change in long-term borrowings 34.0 -1.4
Profit distribution to minorities -0.1
Dividends paid -10.8 -10.6
Total financing 39.3 -5.3
Increase / Decrease in liquid funds -0.5 4.0
Liquid funds in beginning of year 13.1 9.1
Liquid funds at period end 12.6 13.1
KEY FIGURES AND RATIOS 2008 2007
Earnings per share, EUR,
continuing operations 0.27 0.71
Earnings per share, EUR,
discontinued operations 0.33 -0.12
Earnings per share total 0.60 0.59
EPS adjusted for dilution, EUR,
continuing operations 0.26 0.67
EPS adjusted for dilution, EUR,
discontinued operations 0.30 -0.11
EPS adjusted for dilution, EUR, total 0.56 0.56
Comparable earnings per share, EUR,
continuing operations 0.27 0.41
Comparable earnings per share, EUR,
discontinued operations -0.03 -0.12
The Group on the whole
Equity per share, EUR 2.56 2.43
Equity ratio, % 30.6 45.1
Gearing, % 124.9 32.4
Accounting principles
The Financial Statements bulletin has been prepared in accordance
with the IAS 34 (Interim Reports) standard. The accounting principles
that were applied in the preparation of the financial statements of
December 31, 2007 have been applied in the preparation of this
report. All figures are unaudited.
Discontinued Operations, total
1-12/08 1-12/07
MEUR MEUR
Net sales 45.1 57.7
Other operating income 9.4 0.4
Depreciations and write downs -0.4 -0.4
Operating profit 9.6 -1.5
Financial income and expenses -0.8 -1.4
Profit before taxes 8.8 -2.9
Profit for the period 8.5 -3.1
- whereof the gain on the sale of
the Autotank Group 8.2
Assets of Discontinued Operations Dec. 31, 2008
Short term assets 0.7
Total assets held for sale 0.7
Assets classified as held for sale
Short-term liabilities 0.5
Total liabilities held for sale 0.5
Liabilities and financing costs attributable to discontinued
operations have been recorded in their results.
Kauko-Telko Acquisition
Preliminary combination Fair Values
Recorded in Combination Book Value
Before
MEUR MEUR
Acquired assets
Intangible assets 17.9 3.9
Tangible assets 12.6 8.9
Inventories 23.9 23.1
Accounts receivable and other 30.5 30.5
assets
Cash and bank deposits 20.7 20.7
Total assets 105.6 87.8
Long-term liabilities 9.6 4.8
Short-term liabilities 37.2 37.2
Net assets 58.8
Goodwill 37.4
Total acquisition price 96.2
Total acquisition price was EUR 96.2 million including estimated
expert fees of EUR 1.8 million.
Aspo Group Contingent Liabilities 2008 2007
MEUR MEUR
Securities on Group liabilities 79.0 34.6
Leasing liabilities 10.0 13.7
Derivative contracts 0.7 1.4
Helsinki, February 10, 2009
ASPO Plc
Aki Ojanen Arto Meitsalo
CEO CFO
For more information, please contact
Aki Ojanen, +358 9 7595 363, +358 400 106 592
aki.ojanen@aspo.fi
FINANCIAL INFORMATION
Aspo has arranged a press conference for the media and analysts to be
held today, February 10, 2009, starting at 10:30 at Hotel Kämp,
Pohjoisesplanadi 29, 00100 Helsinki, Finland.
ANNUAL SHAREHOLDERS' MEETING
The Aspo Plc Annual Shareholders' Meeting is scheduled to be held on
Tuesday, March 31, 2009, at 14:00 in the Stock Exchange Building at
Fabianinkatu 14, 00100 Helsinki.
FINANCIAL REPORTS 2009
The 20087 Annual Report will be published during week 13 in Finnish,
in English and in Swedish. You can read and order the report on our
website at www.aspo.fi
Aspo Plc will publish three Interim Reports in 2009:
for the first quarter on April 27, 2009
for the second quarter on August 24, 2009
for the third quarter on October 26, 2009
DISTRIBUTION:
NASDAQ OMX Helsinki
Key Media
www.aspo.fi
Aspo is a conglomerate that owns and develops businesses in the
Baltic Sea region focusing on demanding B-to-B customers. The aim of
our strong corporate brands - ESL Shipping, Leipurin, Telko and
Kaukomarkkinat - is to be the market leaders in their sectors. They
are responsible for their own operations, customer relationships and
the development of these. Together they generate Aspo's goodwill.
Aspo's Group structure and business operations are developed
persistently without any predefined schedules.
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