2016-04-28 09:00:41 CEST
2016-04-28 09:00:41 CEST
REGULATED INFORMATION
Aspo - Interim report (Q1 and Q3)
Aspo Group Interim Report, January 1 to March 31, 2016
ASPO Plc STOCK EXCHANGE RELEASE April 28, 2016, at 10:00 a.m.
ASPO GROUP INTERIM REPORT, JANUARY 1 TO MARCH 31, 2016
Aspo: Satisfactory operating profit in a difficult market situation
(Figures from the corresponding period in 2015 are presented in brackets.)
January-March 2016
- Aspo's operating profit stood at EUR 3.3 (3.0) million.
- Comparable operating profit was EUR 3.3 (4.3) million. During the comparative
period, the operating profit of EUR 3.0 million included an impairment loss of
EUR -1.3 million related to Kaukomarkkinat goodwill.
- The operating profit of Kaukomarkkinat improved to EUR -0.3 (-2.0) million.
The operating profit of ESL Shipping decreased but remained at a good level,
considering the market situation, at EUR 2.2 (3.3) million. The operating profit
of Leipurin stood at EUR 0.5 (0.5) million. The operating profit of Telko
decreased to EUR 2.3 (3.0) million. The operating profit of other operations
improved to EUR -1.4 (-1.8) million.
- Profit for the period stood at EUR 2.3 (7.0) million. During the comparative
period, financial income included a gain of EUR 4.9 million from the sale of
shares.
- Earnings per share were EUR 0.07 (0.22). The impact of the gain from the sale
of shares on earnings per share during the comparative period was approximately
EUR 0.16.
Outlook for 2016
The general market development will continue to be poor, and the operating
environment remains exceptionally challenging. Dry bulk freight rates remain at
a very low level, which also reduces the profitability of ESL Shipping's
Supramax vessels. A slight recovery can be seen in the industrial production of
Aspo's customer companies operating in the EU area. The steep decline in the
economies of Russia, Ukraine and other CIS countries has decelerated and,
because of a slight increase in oil prices and the strengthening of the Russian
ruble, the decrease in the Russian GDP is expected to have slowed down. Interest
rates are expected to remain at an unusually low level resulting in moderate
financial expenses.
Guidance for 2016
The guidance will remain unchanged. Aspo's operating profit will be EUR 17-24
(20.6) million in 2016.
KEY FIGURES
1-3/2016 1-3/2015 Change,% 1-12/2015
Net sales, MEUR 98.5 102.0 -3.4 445.8
Operating profit, MEUR *) 3.3 3.0 10.0 20.6
Operating profit, % 3.4 2.9 4.6
Profit before taxes, MEUR **) 2.6 7.5 -65.3 21.3
Profit for the period, MEUR **) 2.3 7.0 -67.1 19.8
Earnings per share, EUR 0.07 0.22 -68.2 0.61
Net cash from operating activities,
MEUR -7.0 -7.4 5.4 25.0
Equity per share, EUR 3.36 3.57 3.36
Return on equity (ROE), % 8.9 26.2 19.1
Equity ratio, % 34.9 37.2 33.8
Gearing, % 108.7 99.9 101.4
ESL Shipping, operating profit,
MEUR 2.2 3.3 -33.3 14.7
Leipurin, operating profit, MEUR 0.5 0.5 0.0 2.4
Telko, operating profit, MEUR *) 2.3 3.0 -23.3 10.4
Kaukomarkkinat, operating profit,
MEUR *) -0.3 -2.0 85.0 -1.2
Items affecting comparability 1-3/2015
*) The operating profit includes an impairment loss of EUR -1.3 million related
to Kaukomarkkinat goodwill.
**) The profit includes an impairment loss of EUR -1.3 million related to
Kaukomarkkinat goodwill and a sales gain of EUR 4.9 recognized in financial
items.
Items affecting comparability 1-12/2015
*) The operating profit includes an impairment loss of EUR -1.3 million related
to Kaukomarkkinat goodwill, and EUR 0.6 million in charges imposed on Telko by
Finnish Customs and related advisor fees.
**) The profit includes an impairment loss of EUR -1.3 million related to
Kaukomarkkinat goodwill, a sales gain of EUR 4.9 recognized in financial items,
and EUR 2.0 million in charges imposed by Finnish Customs and related advisor
fees.
Other significant events during the review period
Mikko Laavainen (M.Sc. Marketing) started as the Managing Director of Leipurin
on March 1, 2016.
AKI OJANEN, CEO OF ASPO GROUP:
"Aspo's operating profit can be regarded as satisfactory, and we had several
successes in different business areas and exceeded the operating profit from the
comparative period.
The euro-denominated decrease in net sales stopped in the eastern markets, which
is a possible sign of stabilization in the market area. Net sales increased in
the EU area. Main factors for the decrease in the shipping company's net sales
included the lower fuel price, which is a reinvoicing item, and the historically
poor market situation of Supramax vessels. Net sales of Telko remained nearly
unchanged, even though the prices of raw materials sold by Telko have decreased
and the values of eastern currencies were lower than during the comparative
period. Net sales of Leipurin bakery machines decreased. Kaukomarkkinat was able
to increase its net sales by more than 20%.
The profitability of ESL Shipping remained as normal at a good level in contract
traffic in the Baltic Sea. During the review period, both large Supramax vessels
were exceptionally forced to international spot traffic, causing the vessels to
produce negative results. As the first trip of the season of one of ESL
Shipping's vessels from Europe to the Russian arctic in Siberia started at the
end of the review period, the shipping company has fewer vessels in spot
traffic.
Telko, our largest business, has developed well, even though the environment is
a challenging one. Its operating profit rate of 5% during the first quarter and
its operating profit rate of approximately 6% in the eastern markets are good
results. The net sales of Leipurin decreased in the eastern markets, but its
profitability remained good and its operating profit rate was approximately 6%.
Mikko Laavainen was appointed new Managing Director of the Leipurin business.
The objective of Leipurin is to achieve growth and profitability in accordance
with its new strategy. We expect that operational changes can be seen to a
significant extent starting from 2017. Kaukomarkkinat continued to invest in its
new strategy.
The Group's general administrative costs have decreased. We expect the operating
result of other operations improves annually by approximately EUR 1.5 million,
mainly as a result of leasing the office premises not needed by Aspo's
businesses to third parties starting from April 1, 2016. Cost savings also arise
from the lower use of external services and lower personnel expenses."
ASPO GROUP
NET SALES
Aspo Group's net sales decreased by EUR 3.5 million, or 3.4%, to EUR 98.5
(102.0) million.
Net sales by segment
1-3/2016 1-3/2015 Change 1-12/2015
MEUR MEUR % MEUR
ESL Shipping 16.2 18.2 -11.0 76.2
Leipurin 26.2 28.3 -7.4 117.8
Telko 49.4 50.0 -1.2 215.3
Kaukomarkkinat 6.7 5.5 21.8 36.5
Other operations 0.0 0.0 0.0 0.0
Total 98.5 102.0 -3.4 445.8
There is no considerable inter-segment net sales.
Net sales by market area
1-3/2016 1-3/2015 Change 1-12/2015
MEUR MEUR % MEUR
Finland 34.1 35.4 -3.7 147.7
Scandinavia 10.8 11.7 -7.7 51.8
Baltic countries 12.0 11.7 2.6 50.4
Russia, Ukraine + other CIS-countries 26.6 26.4 0.8 128.3
Other countries 15.0 16.8 -10.7 67.6
Total 98.5 102.0 -3.4 445.8
Net sales in Finland and Scandinavia fell due to the decrease in the market
prices of Telko's plastics and chemicals, and the decrease in ESL Shipping's
fuel reinvoicing resulting from lower fuel prices. The decrease in the net sales
in Russia, Ukraine and other CIS countries stopped despite the devaluation of
eastern currencies. The net sales increased in Baltic countries and fell in
Other countries.
EARNINGS
Aspo Group's operating profit in January-March stood at EUR 3.3 (3.0) million.
During the comparative period, Kaukomarkkinat divested its Industrial business,
in conjunction with which Aspo assessed the goodwill of the Kaukomarkkinat
segment and recognized an impairment loss of EUR 1.3 million. As a result, the
comparable operating profit in January-March 2015 stood at EUR 4.3 million. ESL
Shipping's operating profit decreased to EUR 2.2 (3.3) million. The operating
profit of Leipurin remained at EUR 0.5 (0.5) million. Telko's operating profit
decreased to EUR 2.3 (3.0) million, and that of Kaukomarkkinat rose by EUR 1.7
million to EUR -0.3 (-2.0) million. The operating profit of other operations
improved but was negative at EUR -1.4 (-1.8) million
Operating profit by segment
1-3/2016 1-3/2015 Change 1-12/2015
MEUR MEUR % MEUR
ESL Shipping 2.2 3.3 -33.3 14.7
Leipurin 0.5 0.5 0.0 2.4
Telko 2.3 3.0 -23.3 10.4
Kaukomarkkinat -0.3 -2.0 85.0 -1.2
Other operations -1.4 -1.8 22.2 -5.7
Total 3.3 3.0 10.0 20.6
Earnings per share
Earnings per share were EUR 0.07 (0.22). Equity per share was EUR 3.36 (3.57).
The result for the comparative period was significantly improved by the gain of
EUR 4.9 million recognized in financial items from the sale of shares in Alandia
Insurance owned by ESL Shipping. Its effect on earnings per share during the
comparative period was approximately EUR 0.16.
Financial targets
Aspo's objective is to reach an average return on equity of over 20%, gearing of
up to 100% and an operating profit of 7% with the current structure.
The operating profit rate for the first quarter 2016 was 3.4% (2.9), return on
equity was 8.9% (26.2), and gearing was 108.7% (99.9).
OUTLOOK FOR 2016
International economic uncertainty has continued. The decreasing economic
situation in China has reflected particularly strongly in demand for basic raw
materials, which has reduced the prices of raw materials and weakened the
international dry bulk freight rates. The economic cycle is expected to remain
weak.
General uncertainty and a poor economic situation will continue in eastern
growth markets that are important areas for Aspo, even though the general
expectation is that the decrease in, for example, the Russian national economy
has decelerated. It is still difficult to estimate the future development of
Russia, Ukraine and other CIS countries and the financial impact of general
uncertainty. Exchange rates are expected to continue to fluctuate heavily.
Inflation will be lower, but it is expected to remain at a higher than usual
level in Russia.
The price of oil is expected to remain at a low level, despite the slight
increase during the first part of the year. In general, prices of production raw
materials are expected to remain low. The Group will continue to increase its
market shares profitably in the strategically important eastern growth markets
as some of its western competitors have withdrawn from the market. While
international dry bulk freight rates are expected to remain low, the shipping
company has secured the use of its capacity mainly through long-term agreements.
The operational profitability of Supramax vessels is expected to improve during
the second quarter and further during the second half of the year.
The guidance for 2016 will remain unchanged. Aspo's operating profit will be EUR
17-24 (20.6) million in 2016.
ASPO'S BUSINESS OPERATIONS
ESL SHIPPING
ESL Shipping is the leading dry bulk cargo company in the Baltic Sea region. At
the end of the review period, the company's fleet consisted of 14 vessels, of
which the company owned 13 in full and one was leased.
1-3/2016 1-3/2015 Change, % 1-12/2015
Net sales, MEUR 16.2 18.2 -11.0 76.2
Operating profit, MEUR 2.2 3.3 -33.3 14.7
Operating profit, % 13.6 18.1 19.3
International dry bulk freight rates continued to decrease to a historically low
level. General market prices for dry bulk cargo of large vessels continue to be
very low and, due to the mild winter, cargo rates did not increase to a
satisfactory level in the Baltic Sea, even during ice restrictions.
ESL Shipping's vessels have mainly operated in the Baltic Sea and in Europe
according to long-term customer agreements and performed loading and unloading
operations at sea. The shipping company's Supramax vessels have operated in
international spot traffic. ESL Shipping's operations in the Baltic Sea and the
North Sea are mainly based on long-term agreements and established customer
relationships. At the end of the review period, ESL Shipping expanded its
customer base to the demanding transportation of project cargo using its 13,000-
ton vessel in the Russian arctic where the independent load handling capacity
and exceptionally good ice strengthening of the vessels can be utilized.
ESL Shipping's net sales in January-March stood at EUR 16.2 (18.2) million. The
decrease in net sales was affected by the historically poor market situation of
Supramax vessels during the first part of the year and the decrease in oil
prices. The lower cost of fuel reduces the shipping company's net sales through
fuel clauses in long-term contracts.
The operating profit in January-March stood at EUR 2.2 (3.3) million,
representing 14% (18) of net sales. The difference from the year before can be
explained by the lower profitability of Supramax vessels and their negative
result at the beginning of the year. However, the vessels' cargo price level was
more than double to the general spot market cargo price level during the review
period. The profitability of other vessels remained at the previous year's good
level, and there was high demand for loading and unloading operations at sea.
ESL Shipping transported nearly as much cargo in January-March as in the
previous year, i.e. 2.4 (2.6) million tons. Transportation volumes in the steel
industry fell slightly compared with the corresponding period in the previous
year, whereas those in the energy industry increased from the comparative
period. The shipping company has started to transport biofuels in the Baltic
Sea, and its pusher-barge fleet is highly adapted to the transportation of the
product which takes up a lot of space in relation to its weight.
The shipping company's newbuilding project for the world's first large LNG-
fueled dry bulk cargo vessels has proceeded according to plans.
Outlook for ESL Shipping for 2016
International dry cargo prices are expected to remain very low. The
international freight rate level of large dry bulk cargo vessels remain at a
historically low level, regardless of the recent price increase. The same
situation will also be reflected in the market of large ice-strengthened
vessels, making it more challenging than in the previous year.
Most of the shipping company's transportation capacity has been secured in the
Baltic Sea and Northern Europe through long-term agreements. The international
price competitiveness of raw materials transported from Russia is good, and ESL
Shipping's transportation volumes from Russia are expected to increase further
or remain at the same level. The shipping company aims to continue operations in
the Russian arctic during the summer and fall periods as in previous years.
Total transportation volumes in the energy industry are expected to be higher
than in the previous year, largely because of the transportation of biofuels.
Transportation volumes in the steel industry are expected to be slightly below
the previous year's level, still remaining at a satisfactory level. The seasonal
variation in demand may require that the capacity of the pusher system be
adapted in late spring, similarly to previous years. If required, the capacity
will be adapted according to seasonal variation by chartering the additional
capacity required.
Demand for loading and unloading services for large ocean liners at sea will
continue to be high. The shipping company will continue efforts to expand its
customer base, in particular, to customer transportation where the company's
operating area can be increased while utilizing the independent load handling
capability and the exceptionally high ice strengthening of its vessels. In
2016, six vessel units will be docked as planned during the second and third
quarters.
LEIPURIN
Leipurin serves the bakery and food industry and the out-of-home eating market
by offering total solutions. Leipurin provides its customers with the best
concepts for bakery and confectionery products. These range from the development
of products to recipes, raw materials, training and equipment and all the way to
the design of sales units. As part of its total solutions, Leipurin also
designs, supplies and maintains bakery manufacturing lines, bake-off units, and
other machinery and equipment needed in the food industry. Partners that supply
Leipurin raw materials and machines are leading international manufacturers
within their field. Leipurin operates in Finland, Russia, the Baltic countries,
Poland, Ukraine, Kazakhstan and Belarus.
1-3/2016 1-3/2015 Change, % 1-12/2015
Net sales, MEUR 26.2 28.3 -7.4 117.8
Operating profit, MEUR 0.5 0.5 0.0 2.4
Operating profit, % 1.9 1.8 2.0
In the western markets, the prices of grain-based and other raw materials have
mainly remained at the level of the comparative period. The market of industrial
packed bread continues to decrease in the west, whereas the market of in-store
bakeries and bake-off units has continued to increase. The growth in imported
frozen bakery products to Finland has slowed down.
The Russian economic crisis has reduced the purchasing power of consumers in
Russia and accelerated inflation, which was approximately 7% when it comes to
food products during the review period. In Russia, demand for bakery products
has shifted towards affordable products, and raw materials have been replaced by
locally produced low cost materials. The ruble-denominated prices of imported
raw materials and partly those of local raw materials increased from the
comparative period.
The net sales of Leipurin for the first quarter fell from the comparative
period, totaling EUR 26.2 (28.3) million. Operating profit stood at EUR 0.5
(0.5) million. The operating profit rate during the quarter was 1.9% (1.8). The
devalued ruble and the high price of financing had a significant impact on
investments made by customer companies in Russia, which kept the delivery
volumes of Leipurin machine sales at a low level during the first quarter.
Because of the challenging market situation, the euro-denominated sale of bakery
raw materials fell in Russia, while the operating profit rate level remained
good at 10%. Operations in the Baltic region fell from the comparative period as
a result of a decrease in raw material volumes. Operations continued to grow in
Ukraine and other CIS countries. Successful product launches and the growing
number of customers increased net sales in Finland compared with the
corresponding period in the previous year.
Machinery and equipment investments remained at a low level in all operating
countries of Leipurin during the first quarter. Machinery operations showed a
loss during the first quarter due to the unfavorable development of the Russian
market. Adaptation measures regarding Leipurin's own production in machine
operations were launched during the first quarter. Intense sales activities
continued in different market areas, including Western Europe and Middle East,
two areas outside the key markets.
Euro-denominated net sales in Russia, Ukraine and other CIS countries decreased
during the first quarter by approximately 4% from the comparative period, being
EUR 6.1 (6.3) million. In Russia, Leipurin has replaced imported raw materials
with locally procured raw materials, which has reduced net sales. However, the
profitability of bakery raw materials in Russia has remained good and their
market position has strengthened. The relative profitability of the eastern
markets fell to approximately 6%.
Outlook for Leipurin for 2016
The market situation is expected to remain challenging in key markets of
Leipurin. The economic situation in Russia is estimated to remain poor and
inflation to remain high, due to which willingness to make investments in Russia
will be at a low level. The purchasing power of consumers is expected to
decrease further. Leipurin will maintain its good profitability and strengthen
its market position in the area. In Russia, Leipurin has developed the range and
distribution of its frozen bread products, and its intention is to start the
outsourced manufacturing of frozen bread products during 2016. The product range
will be built together with European and local frozen bread producers. The local
procurement of bakery raw materials has been increased to replace imported raw
materials, and the objective is to increase the share of local raw materials to
more than 50%. Local procurement has been decentralized and, currently, there
are already dozens of significant partners.
Leipurin develops more full-range solutions for its customers. The out-of-home
eating market is a significant new operating area for Leipurin. The market
position is expected to remain strong in the industrial baking sector in Finland
and the Baltic region. Operational re-evaluations will be continued in machine
operations, and measures will be taken to improve profitability.
TELKO
Telko is the leading expert and supplier of plastic raw materials and industrial
chemicals in the Baltic Sea region. Telko operates in Finland, the Baltic
countries, Scandinavia, Poland, the Czech Republic, Slovakia, Ukraine, Russia,
Belarus, Kazakhstan, Azerbaijan, Georgia and China. Procurement operations are
international. Business is based on the representation of the best international
principals and on the expertise of the personnel. Telko cooperates with its
regional customers to develop their production and competitiveness.
1-3/2016 1-3/2015 Change, % 1-12/2015
Net sales, MEUR 49.4 50.0 -1.2 215.3
Operating profit, MEUR *) 2.3 3.0 -23.3 10.4
Operating profit, % 4.7 6.0 4.8
*) The operating profit 1-12/2015 includes EUR 0.6 million in charges imposed by
Finnish Customs and related advisor fees.
The outlook of customer companies continued to be poor in markets significant to
Telko. The prices of both plastics and chemicals were low. The prices of
chemicals were significantly lower than in the comparative period, whereas the
prices of plastics were slightly higher than in the comparative period.
Denominated in the local currency, net sales were approximately 40% higher than
in the comparative period in Ukraine and at the level of the comparative period
in Russia. Despite the lower prices and the rate of the Russian ruble, which was
lower than in the comparative period, Telko's euro-denominated net sales
remained nearly at the previous year's level at EUR 49.4 (50.0) million.
Operating profit fell to EUR 2.3 (3.0) million, representing 5% (6) of net
sales. Operating profit decreased substantially in the Ukrainian market area.
Net sales in Russia, Ukraine, and other CIS countries stood at EUR 19.3 (19.4)
million. In Russia, euro-denominated net sales decreased. The operating profit
rate in the eastern markets was approximately 6%. The operating profit increased
in the western markets.
The transfer of the Castrol motor oils business to Telko in Finland started at
the beginning of the quarter, generating costs. The transfer of the business is
planned to be completed before summer, and it is expected to have a positive
impact on net sales and profitability during the second half of the year.
The terminal investment in St. Petersburg advanced to the main design phase. The
design project is making good progress, even though the plot purchase has
delayed from the original estimate due to the permit process of the business
park.
Outlook for Telko for 2016
Oil prices are expected to remain low. The prices of plastic raw materials have
increased after the first quarter, but the prices of chemicals are expected to
remain at a notably low level. Industrial outlook in Telko's main market areas
will continue to be uncertain. The geographic coverage of Telko in 16 countries,
together with several customer industries, reduces Telko's operational risks.
The new Castrol motor oils business in Finland is expected to have a positive
impact on net sales and operating profit during the second half of the year. Due
to delays in the plot purchase process in St. Petersburg, the construction of
the terminal is expected to begin in 2017.
KAUKOMARKKINAT
Kaukomarkkinat is the expert in demanding mobile working environments. It
provides the best tools and solutions improving productivity as well as services
ensuring efficiency of healthcare, logistics, industry and authorities. It also
operates in energy sector. Kaukomarkkinat operates in Finland and
China.
1-3/2016 1-3/2015 Change, % 1-12/2015
Net sales, MEUR 6.7 5.5 21.8 36.5
Operating profit, MEUR *) -0.3 -2.0 85.0 -1.2
Operating profit, % -4.5 -36.4 -3.3
*) In 2015 the operating profit included a EUR 1.3 million goodwill impairment
loss.
The operating profit of Kaukomarkkinat improved significantly from the
comparative period. The first quarter is traditionally the weakest of all
quarters. Net sales of Kaukomarkkinat grew by 22% to EUR 6.7 (5.5) million.
Operating profit improved to EUR -0.3 (-2.0) million. The comparable operating
profit was EUR -0.3 (-0.7) million. In connection with the divestment of the
Industrial business of Kaukomarkkinat during the comparative period, Aspo
assessed the goodwill of the Kaukomarkkinat segment, and recognized an
impairment loss of EUR 1.3 million.
Orders for mobile knowledge work increased from the comparative period and,
during the review period, the first maintenance service agreement on a customer
system was signed. Orders amounting to approximately EUR 1 million were
transferred to be delivered in the next quarter, consisting of demanding IT for
hospitals and other IT deliveries. Key professionals were recruited in order to
further develop mobile knowledge work. Sales and profitability of energy-
efficiency equipment developed positively compared to the corresponding period
in the previous year. Solar power and heat systems have showed the fastest
growth, in addition to which the delivery volumes of air source heat pumps
increased from the comparative period.
Outlook for Kaukomarkkinat for 2016
According to its new strategy, Kaukomarkkinat will renew its service range,
business image and customer communications during the spring. From now on,
Kaukomarkkinat will invest in the development and sale of solutions for mobile
knowledge work. This requires further recruitment of additional technical and
commercial professionals and development of internal operating models.
Total solutions for mobile knowledge work and maintenance agreements in
accordance with the new strategy are expected to make up larger shares of net
sales. Kaukomarkkinat will invest in total solutions that combine customized
applications, devices and services. The authorities and the fields of logistics,
industry and healthcare, in particular, are expected to show high demand for the
mobile knowledge work solutions offered by Kaukomarkkinat, at first in Finland
followed by other European markets. In April, Kaukomarkkinat established a
subsidiary in Germany in order to identify the opportunities of mobile knowledge
work in the German healthcare sector.
The volume and profitability of energy products are expected to grow through a
more focused product range resulting from the new sales strategy and
organization. In particular, the sale of solar power solutions is expected to
grow steeply.
OTHER OPERATIONS
Other operations include Aspo Group's administration, the financial and ICT
service center, and a small number of other functions not covered by business
units.
1-3/2016 1-3/2015 Change, % 1-12/2015
Net sales, MEUR 0.0 0.0 0.0 0.0
Operating profit, MEUR -1.4 -1.8 22.2 -5.7
The operating profit of other operations was negative and amounted to EUR -1.4
(-1.8) million. The decrease in the operating profit of the comparative period
resulted from expenses related to bonus- and share-based payments.
FINANCING
The Group's cash and cash equivalents amounted to EUR 12.4 million (12/2015: EUR
23.9 million). The consolidated balance sheet included a total of EUR 124.1
million in interest-bearing liabilities (12/2015: EUR 127.9 million). The
average rate of interest-bearing liabilities was 1.8% at the end of the review
period (12/2015: 1.7%). Non-interest-bearing liabilities totaled EUR 69.5
million (12/2015 EUR 74.3 million).
Aspo Group's gearing was 108.7% (12/2015: 101.4%) and its equity ratio was
34.9% (12/2015: 33.8%). At the end of the first quarter of 2015, gearing was
99.9% and the equity ratio was 37.2%.
The Group's operational cash flow during the review period totaled EUR -7.0
million (EUR -7.4 million). Change in working capital during the review period
was EUR -12.1 million (EUR -13.3 million).
Cash flow from investments during the review period was negative at EUR -0.6
million (EUR 3.6 million), i.e. the Group's free cash flow was EUR -7.6 million
(EUR -3.8 million).
The amount of committed revolving credit facilities signed between Aspo and its
main financing banks stood at EUR 60 million at the end of the review period.
The revolving credit facilities and the commercial paper program of EUR 80
million remained fully unused at the end of the review period. In 2016, a
financial agreement of EUR 20 million will fall due. No other significant loan
agreements will expire in 2016.
On November 18, 2013, Aspo issued a hybrid bond of EUR 20 million. The coupon
rate of the bond is 7% per annum. The bond has no maturity, but the company may
exercise an early redemption option after three years of its issuance.
Aspo has hedged its interest rate risk by means of an interest rate swap. Its
fair value on March 31, 2016 was EUR -0.8 million. The financial instrument is
on level 2 of the fair value hierarchy.
Aspo Group has hedged its currency-denominated cash flows associated with the
acquisition of new vessels using currency forward agreements, to which hedge
accounting is applied. The nominal value of these currency forward agreements is
EUR 38.5 million, and their fair value was EUR -1.4 million at the end of the
review period. The financial instrument is on level 2 of the fair value
hierarchy.
INVESTMENTS
The Group's investments stood at EUR 0.6 (1.2) million, consisting of
maintenance investments.
Investments by segment, acquisitions excluded
1-3/2016 1-3/2015 Change 1-12/2015
MEUR MEUR % MEUR
ESL Shipping 0.4 0.7 -42.9 13.2
Leipurin 0.0 0.1 -100.0 0.5
Telko 0.2 0.4 -50.0 1.0
Kaukomarkkinat 0.0 0.0 - 0.1
Other operations 0.0 0.0 - 0.3
Total 0.6 1.2 -50.0 15.1
PERSONNEL
Personnel by segment, period-end
3/2016 3/2015 Change, % 12/2015
ESL Shipping 221 218 1.4 223
Leipurin 310 290 6.9 299
Telko 271 259 4.6 265
Kaukomarkkinat 45 45 0.0 46
Other operations 22 27 -18.5 24
Total 869 839 3.6 857
At the end of the review period, Aspo Group had 869 (839) employees. The number
of personnel has increased, in particular, in Russian companies of Leipurin and
Telko. Personnel in other operations have decreased through the implementation
of the 2014 outsourcing plan and the reorganization of the parent company.
Rewarding
In 2015, the Board of Directors of Aspo Plc approved a share-based incentive
plan for about 30 persons. The plan includes three earnings periods, the
calendar years 2015, 2016 and 2017. The Board of Directors will decide on the
plan's performance criteria and required performance levels for each criterion
at the beginning of each earnings period.
The reward from the earnings period 2015 was based on the Group's earnings per
share (EPS). On the basis of the 2015 earnings period, employees included in the
plan received 88,970 treasury shares as a share-based reward, as well as cash
equaling the value of the shares at most in order to pay taxes.
The reward from the 2016 earnings period will be based on the Group's earnings
per share (EPS). The possible reward from the 2016 earnings period will be paid
in 2017, partly in treasury shares and partly in cash to cover any taxes and
tax-related costs arising from the reward. At most 112,250 treasury shares will
be granted, and the amount paid in cash will correspond at most to the value of
the shares on the payment date.
RISKS AND RISK MANAGEMENT
Aspo's operating environment remains to be unusually challenging, and economic
conditions in Aspo's operating countries continue to be poor. The GDP is growing
slowly in western countries and falling even further in the east. Inflation has
turned into deflation in Western Europe and remains high in the eastern markets.
Cargo prices are low, even though they have turned to a slight increase. The
economic uncertainty maintains risks in all of Aspo's businesses.
A good business result in Russia and Ukraine may suffer as a result of the
uncertainty prevailing in the region, and the market uncertainty and any changes
in the values of local currencies may have an impact on product demand and the
competitiveness of prices. Growth in eastern and western markets is limited by
the weak investment demand.
Strategic risks
In addition to the western markets, Aspo is operating in areas where the economy
may increase or decrease and, as a result of this development, business
preconditions may either improve or weaken significantly.
As a result of an increase in the prices of imported products in Russia and
Ukraine, consumer demand has slowed down and the economy has contracted and is
expected to continue to contract. Even though any weakening currencies
decelerate euro-denominated growth in net sales, euro-denominated costs will
also decrease in Russia and Ukraine. In addition to trade, the poor economic
situation is reflected in financial markets and payments in Russia and Ukraine.
In Russia, the increase in the prices of imported goods and any impact of
financial sanctions are reduced through local procurement operations, with raw
materials and products made in Russia having been entered into production to
some extent despite the decrease in quality. For example, Leipurin has expanded
locally procured raw materials to nearly half of its purchases.
A key element in Aspo's strategy is the implementation of various structural
changes. If the current economic situation continues or even weakens, structural
changes within Aspo may become more difficult.
Financial sanctions or any other obstacles caused by the current situation in
Russia may, in part, reduce coal transportation volumes, and decrease unloading
services for large ocean liners at sea. The social objective to reduce the
consumption of coal in energy production has increased in significance, which
may reduce the need to transport coal. As a result, it has become more difficult
to estimate future transportation volumes. The low level of international
freight indices and the increases in international vessels in some size
categories have increased uncertainty over the long-term profitability of
shipping companies.
In addition to the internationally poor economic situation and the political
atmosphere, strategic risks are caused by the outlook and production solutions
of industrial customers. Current decisions on energy production structures
affected by the environmental policy and other political choices may cause
changes in industry and energy production that may decrease the use of fossil
fuels and increase the use of alternative forms of energy. The flow of goods in
the Baltic Sea may change as a result of the cost structures, changes in the
customer structure, such as centralization, or for other reasons. These changes
may have negative consequences on operations as the need for transportation
decreases, but they can also be seen as significant opportunities. As a result
of low cargo prices in global maritime transport, competition for cargo may
become more intense in the Baltic Sea area, as well.
Strategic risks are affected by changes in cargo prices, investment trends, and
changes in trading structures, especially in western markets. In the eastern
markets, risks are increased by such factors as political instability, social
structures or the lack of any reaction to the difficulties encountered by
business operations. Rapid changes in economic structures may cause risks due to
changes in the customer or client structure or technologies, and due to
unutilized opportunities that require a quick response. Despite the aggravation
of the political situation and the alarming direction of economic development,
Aspo's strategic risks are evened out by the distribution of business operations
over four segments, its engagement in business operations in a broad
geographical area, and its ability to react quickly to changing situations.
Operational risks
Even though economic uncertainty in the operating environment has not increased
from the year before, operational risks have remained unchanged. These include,
for example, risks related to supply chains and persons.
The focus of Aspo's growth has for long been on emerging market areas, where
growth risks are affected by factors such as the level of and changes in the
global market prices for raw materials, exchange rates, interest rate levels,
industrial and commercial investments, customer liquidity, changes in
legislation and import regulations, and inactivity by the authorities.
Economic growth and, alternatively, any decrease in production may have an
impact on demand for raw materials in the eastern markets. Currently, the
political instability in Ukraine is disturbing commercial activities and, if the
situation continues, the growth of Aspo's business operations in Ukraine will
slow down. There may be a similar trend in Russia if purchasing power decreases.
Furthermore, consumer behavior is reflected in the risks generated through B-to-
B customers and their risk levels. The growth opportunities presented by
emerging markets are encouraging interest among competitors in starting or
expanding business operations in these areas. The challenging emerging markets
and the escalated situation in Ukraine have also caused competitors to withdraw
from the area, which has created new potential for Aspo's businesses, increased
their market shares and, in some business areas, even improved profitability.
Hedging against exchange rate changes, particularly in emerging markets, is not
possible in all situations, and especially without interruptions. Changes in
exchange rates may also reduce equity on the balance sheet as a result of
translation differences. As changes in credit loss risks are diversified across
businesses and customers, Aspo's businesses have not been subjected to any
significant credit losses. However, the limits of credit insurers have become
tighter and, in general, credit loss risks have increased and been realized to
some extent.
The quantity and probability of the Group's loss risks are assessed regularly.
The amounts insured are sufficient in view of the scope of Aspo's operations,
but insurance companies may restrict the validity of insurance policies as a
result of risks increasing for various reasons.
Internal control and risk management
One of the responsibilities of Aspo's Audit Committee is to monitor the
efficiency of the Group's internal control, internal audits, and risk management
systems. The Audit Committee monitors the risk management process and carries
out necessary measures to prevent strategic risks, in particular. In accordance
with the internal control principles approved by the Board of Directors, risk
management is part of Aspo's internal control, and its task is to ensure the
implementation of the Group's strategy, development of financial results,
shareholder value, dividend payment ability, and continuity in business
operations. The operational management of the business areas is responsible for
risk management. The management is responsible for specifying sufficient
measures and their implementation, and for monitoring and ensuring that the
measures are implemented as part of day-to-day management of operations. Risk
management is coordinated by Aspo's CFO, who reports to the Group CEO.
Aspo Group's financing and financing risk management are centralized in the
parent company in accordance with the treasury policy approved by the Board of
Directors.
A more detailed account of the risk management policy and the most significant
risks has been published in the Year 2015 report and on the company's website.
More detailed information on financial risks can be found in the notes to the
financial statements.
SHARE CAPITAL AND SHARES
Aspo Plc's share capital on March 31, 2016 was EUR 17,691,729.57 and the total
number of shares was 30,975,524 of which the company held 390,951 shares; that
is, 1.3% of the share capital. Aspo Plc has one share series. Each share
entitles the shareholder to one vote at the shareholders' meeting. Aspo's share
is quoted on Nasdaq Helsinki Oy's Mid Cap segment under industrial products and
services.
During January-March 2016, a total of 640,256 Aspo Plc shares with a market
value of EUR 4.5 million were traded on Nasdaq Helsinki, in other words, 2.1% of
the stock changed hands. During the review period, the share price reached a
high of EUR 7.43 and a low of EUR 6.70. The average price was EUR 7.01 and the
closing price at period-end was EUR 7.43. At the end of the review period, the
market value excluding treasury shares was EUR 227.2 million.
The number of Aspo Plc shareholders was 9,078 at period-end. A total of 777,137
shares, or 2.5% of the share capital, were nominee registered or held by non-
domestic shareholders.
DECISIONS AT THE SHAREHOLDERS' MEETING
Dividend
The Annual Shareholders' Meeting of Aspo Plc on April 7, 2016, approved the
payment of a dividend totalling EUR 0.41 per share according to the Board's
proposal. The dividend's payment date was April 18, 2016.
Board of Directors and Auditor
The Annual Shareholders' Meeting re-elected to the Board of Directors LL.M, MBA
Mammu Kaario, LL.M. Roberto Lencioni, B.Sc. (Econ.), eMBA Gustav Nyberg and
M.Sc. (Tech.) Risto Salo and M.Sc. (Econ.) Mikael Laine and D.Sc. (Econ.) Salla
Pöyry were elected as new members of the Board of Directors. At the Board's
organizing meeting held after the Annual Shareholders' Meeting, Gustav Nyberg
was elected as Chairman of the Board and Roberto Lencioni as Vice-Chairman. At
the meeting the Board also decided to appoint Roberto Lencioni Chairman of the
Audit Committee and Mammu Kaario, Mikael Laine and Salla Pöyry as committee
members.
The authorized public accounting firm Ernst & Young Oy was elected as company
auditor.
Shareholders' Nomination Board
The Annual Shareholders' Meeting decided to establish a permanent Shareholders'
Nomination Board to prepare proposals to the Annual Shareholders' Meeting for
the election and remuneration of the members of the Board of Directors and the
remuneration of the Board committees. In addition, the Meeting adopted the
Charter of the Shareholders' Nomination Board.
The Nomination Board comprises representatives of the four largest shareholders
of the company and, in addition, the Chairman of the company's Board as an
expert member. The right to nominate the shareholder representatives lies with
those four shareholders whose share of all the voting rights in the company is
the largest on August 31 of the calendar year preceding the Annual Shareholders'
Meeting. However, holdings by a shareholder who, under the Finnish Securities
Market Act, has the obligation to disclose its shareholdings (flagging
obligation) that are divided into several funds or registers, will be summed up
when calculating the share of all the voting rights, provided that such
shareholder presents a written request to that effect to the Chairman of the
company's Board of Directors no later than on August 30 of the calendar year
preceding the Annual Shareholders' Meeting. Should a shareholder not wish to use
its nomination right the right transfers to the next largest shareholder.
The Chairman of the Board of Directors convenes the first meeting of the
Nomination Board and the Nomination Board elects a Chairman from among its
members. The Nomination Board shall submit its proposals to the Board of
Directors annually, latest on January 1 preceding the next Annual Shareholders'
Meeting.
Board authorizations
Authorization of the Board of Directors to decide on the acquisition of treasury
shares
The Annual Shareholders' Meeting on April 7, 2016 authorized the Board of
Directors to decide on the acquisition of no more than 500,000 of the treasury
shares using the unrestricted equity of the company. The authorization includes
the right to accept treasury shares as a pledge.
The shares shall be acquired through public trading, for which reason the shares
are acquired otherwise than in proportion to the share ownership of the
shareholders and the consideration paid for the shares shall be the market price
of the Aspo's share at the time of repurchase. Shares may also be acquired
outside public trading for a price which at most corresponds to the market price
in public trading at the time of acquisition. The authorization includes the
Board's right to resolve on a directed repurchase or the acceptance of shares as
a pledge, if there is a compelling financial reason for the company to do so as
provided for in Chapter 15, section 6 of the Finnish Limited Liability Companies
Act. The shares shall be acquired to be used for the financing or execution of
corporate acquisitions or other transactions, for execution of the company's
share-based incentive plans or for other purposes determined by the Board.
The decision to acquire or redeem treasury shares or to accept them as pledge
shall not be made so that the shares of the company in the possession of, or
held as pledges by the company and its subsidiaries would exceed 10% of all
shares. The authorization will remain in force until the Annual Shareholders'
Meeting in 2017 but not more than 18 months from the approval at the
Shareholders' Meeting.
The Board of Directors shall decide on any other matters related to the
acquisition of treasury shares and/or accepting them as a pledge.
The authorization will supersede the authorization for the acquisition of
treasury shares which was granted to the Board of Directors by the Annual
Shareholders' Meeting on April 9, 2015.
Authorization of the Board of Directors to decide on a share issue of the
company's own shares
The Annual Shareholders' Meeting on April 9, 2015, authorized the Board of
Directors to decide on a share issue, through one or several installments, to be
executed by conveying the company's own shares. An aggregate maximum amount of
900,000 shares may be conveyed based on the authorization. The authorization
will be used for the financing or execution of corporate acquisitions or other
transactions, for execution of the company's share-based incentive plans or for
other purposes determined by the Board.
The authorization includes the right of the Board of Directors to decide on all
the terms and conditions of the conveyance and thus also includes the right to
convey shares otherwise than in proportion to the share ownership of the
shareholders, in deviation from the shareholders' pre-emptive right, if a
compelling financial reason exists for the company to do so. The authorization
will remain in force until September 30, 2018. The company's own shares may be
transferred either against or without payment. The Board of Directors shall
decide on any other matters related to the share issue.
Authorization of the Board of Directors to decide on a rights issue
The Annual Shareholders' Meeting on April 9, 2015, authorized the Board of
Directors to decide on a rights issue for consideration. The authorization is
proposed to include the right of the Board of Directors to decide on all of the
other terms and conditions of the conveyance and thus also includes the right to
decide on a directed share issue, in deviation from the shareholders' pre-
emptive right, if a compelling financial reason exists for the company to do so.
The total number of new shares to be offered for subscription may not exceed
1,500,000. The authorization will remain in force until September 30, 2018.
ASPO BOARD OF DIRECTOR'S DECISION CONCERNING THE DIVIDENDS STARTING FROM 2017
Following the global trend, the Board of Directors of Aspo Plc has decided to
propose to the Annual Shareholders' Meeting that a twice-a-year distribution
policy be adopted starting from 2017.
Aspo Board of Directors has also confirmed that Aspo will maintain its current
dividend policy, whereby the company distributes in dividends at least half of
the annual profit on average.
LEGAL PROCEEDINGS
On February 27, 2015, the Helsinki District Court announced its judgement in the
case between ESL Shipping and the Finnish State regarding fairway dues levied
during the years 2001-2004. According to the judgement, the Finnish State will
be required to refund to ESL Shipping approximately EUR 3.0 million in
accordance with the company's claim, as well as legal expenses and interest. The
State has appealed against the judgement. If the district court judgement
becomes final, it will affect Aspo Group's result positively with an amount
corresponding to these items.
The shipping company won legal proceedings against Indian ABG Shipyard
concerning the compensation payable for repairs made to m/s Alppila during the
warranty period. The vessel was delivered to ESL Shipping in 2011. According to
the ruling of the arbitration court, ABG Shipyard was required to refund the
repair expenses and interest to ESL Shipping according to the company's claims.
The impact of ruling will be recognized during the period over which the imposed
payment is received.
Helsinki April 28, 2016
ASPO Plc
Board of Directors
ASPO GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
1-3/2016 1-3/2015 1-12/2015
MEUR % MEUR % MEUR %
Net sales 98.5 100.0 102.0 100.0 445.8 100.0
Other operating income 0.1 0.1 0.5 0.5 1.2 0.3
Materials and services -70.3 -71.4 -71.1 -69.7 -318.2 -71.4
Employee benefit expenses -10.1 -10.3 -11.3 -11.1 -41.0 -9.2
Depreciation, amortiziation and
impairment losses -2.8 -2.8 -4.1 -4.0 -12.5 -2.8
Other operating expenses -12.1 -12.3 -13.0 -12.7 -54.7 -12.3
Operating profit 3.3 3.4 3.0 2.9 20.6 4.6
Financial income and expenses -0.7 -0.7 4.5 4.4 0.7 0.2
Profit before taxes 2.6 2.6 7.5 7.4 21.3 4.8
Income taxes -0.3 -0.3 -0.5 -0.5 -1.5 -0.3
Profit for the period 2.3 2.3 7.0 6.9 19.8 4.4
Other comprehensive income
Items that may be reclassified to profit
or loss in subsequent periods:
Translation differences -0.3 0.3 -5.8
Cash flow hedges -1.7 0.0 0.3
Available-for-sale financial assets 1.8 1.8
Reclassification -4.9 -4.9
Income tax on other comprehensive income 0.1 0.6 0.6
Other comprehensive income for the
period, net of taxes -1.9 -2.2 -8.0
Total comprehensive income 0.4 4.8 11.8
Profit attributable to shareholders 2.3 7.0 19.8
Total comprehensive income attributable
to shareholders 0.4 4.8 11.8
Earnings per share, EUR 0.07 0.22 0.61
Diluted earnings per share, EUR 0.07 0.22 0.61
ASPO GROUP CONSOLIDATED BALANCE SHEET
3/2016 3/2015 Change 12/2015
MEUR MEUR % MEUR
Assets
Intangible assets 10.5 12.0 -12.5 11.1
Goodwill 42.7 42.7 0.0 42.7
Tangible assets 114.7 110.2 4.1 116.4
Available-for-sale financial assets 0.2 0.2 0.0 0.2
Receivables 3.6 3.8 -5.3 3.8
Total non-current assets 171.7 168.9 1.7 174.2
Inventories 53.7 48.3 11.2 48.4
Accounts receivable and other receivables 58.5 63.0 -7.1 58.3
Cash and cash equivalents 12.4 14.9 -16.8 23.9
Total current assets 124.6 126.2 -1.3 130.6
Total assets 296.3 295.1 0.4 304.8
Equity and liabilities
Share capital 17.7 17.7 0.0 17.7
Other equity 85.0 91.3 -6.9 84.9
Total equity 102.7 109.0 -5.8 102.6
Non-current liabilities 121.1 67.7 78.9 121.1
Current liabilities 72.5 118.4 -38.8 81.1
Total equity and liabilities 296.3 295.1 0.4 304.8
ASPO GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A = Share capital F = Translation differences
B = Share premium G = Retained earnings
C = Fair value reserve H = Total
D = Other reserves
E = Treasury shares
MEUR A B C D E F G H
Equity Jan. 1, 2016 17.7 4.3 -0.3 31.9 -2.7 -21.8 73.5 102.6
Comprehensive income:
Profit for the period 2.3 2.3
Translation differences -0.3 -0.3
Cash flow hedges* -1.6 -1.6
Total comprehensive income -1.6 -0.3 2.3 0.4
Transactions with owners:
Interest on hybrid instrument -0.4 -0.4
Share-based incentive plan 0.4 -0.3 0.1
Transfer of reserves 0.1 -0.1 0.0
Total transactions
with owners 0.1 0.4 -0.8 -0.3
Equity March 31, 2016 17.7 4.3 -1.9 32.0 -2.3 -22.1 75.0 102.7
Equity Jan. 1, 2015 17.7 4.3 1.9 32.0 -3.4 -16.0 67.6 104.1
Comprehensive income:
Profit for the period 7.0 7.0
Translation differences 0.3 0.3
Cash flow hedges* 0.0 0.0
Available-for-sale financial
assets* -2.5 -2.5
Total comprehensive income -2.5 0.3 7.0 4.8
Transactions with owners:
Interest on hybrid instrument -0.3 -0.3
Share-based incentive plan 0.7 -0.3 0.4
Total transactions
with owners 0.7 -0.6 0.1
Equity March 31, 2015 17.7 4.3 -0.6 32.0 -2.7 -15.7 74.0 109.0
* net of taxes
ASPO GROUP CONSOLIDATED CASH FLOW STATEMENT
1-3/2016 1-3/2015 1-12/2015
MEUR MEUR MEUR
CASH FLOW FROM OPERATING ACTIVITIES
Operating profit 3.3 3.0 20.6
Adjustments to operating profit 2.9 4.2 13.4
Change in working capital -12.1 -13.3 -4.2
Interest paid -0.9 -0.8 -3.1
Interest received 0.1 0.1 0.6
Income taxes paid -0.3 -0.6 -2.3
Net cash from operating activities -7.0 -7.4 25.0
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible and intagible assets -0.6 -1.0 -5.5
Advance payments for vessels -9.2
Proceeds from sale of tangible assets 0.1
Proceeds from available-for sale financial
assets 4.9 4.9
Subsidiaries acquired, contigent consideration -0.3 -0.3
Business operations and subsidiaries sold 0.1
Net cash from investing activities -0.6 3.6 -9.9
CASH FLOW FROM FINANCING ACTIVITIES
Change in current loans -2.8 -0.9 -21.9
Change in non-current loans -1.0 0.1 25.6
Hybrid instrument -1.4
Dividends distributed -12.2
Net cash from financing activities -3.8 -0.8 -9.9
Change in cash and cash equivalents -11.4 -4.6 5.2
Cash and cash equivalents Jan. 1 23.9 19.3 19.3
Translation differences -0.1 0.2 -0.6
Cash and cash equivalents at period-end 12.4 14.9 23.9
ASPO GROUP ASSETS AND LIABILITIES BY SEGMENT
Segments' assets, MEUR
3/2016 3/2015 12/2015
ESL Shipping 123.2 119.9 123.8
Leipurin 61.2 62.6 61.8
Telko 74.5 74.0 65.7
Kaukomarkkinat 23.7 18.4 26.8
Unallocated items 13.7 20.2 26.7
Total 296.3 295.1 304.8
Segments' liabilities, MEUR
3/2016 3/2015 12/2015
ESL Shipping 10.4 9.7 11.0
Leipurin 12.1 13.3 14.9
Telko 27.2 27.1 27.1
Kaukomarkkinat 10.0 3.5 12.6
Unallocated items 133.9 132.5 136.6
Total 193.6 186.1 202.2
ACCOUNTING PRINCIPLES
Aspo Plc's interim report has been prepared in accordance with the principles of
IAS 34 Interim Financial Reporting. As of January 1, 2016, Aspo applies certain
new or amended IFRS standards and IFRIC interpretations as described in the
2015 financial statements. The adoption of these new or amended standards has
not had any substantial impact on the reported figures. In other respects, the
same accounting principles have been adopted in the interim report as in the
Financial Statements on December 31, 2015. The calculation principles of key
figures are explained on page 70 of the Year 2015 report. The information in
this report is unaudited.
SEGMENT REPORTING
Aspo Group's operational segments are ESL Shipping, Leipurin, Telko and
Kaukomarkkinat. Other operations consists of Aspo Group's administration, the
financial and ICT service center, and a small number of other functions not
covered by business units.
The Group reports its net sales on the basis of the following geographical
division: Finland; Scandinavia; the Baltic countries; Russia, Ukraine and other
CIS countries; and other countries.
PRESS AND ANALYST CONFERENCE
A press and analyst conference will be arranged today, Thursday April 28, 2016
at 14.00 at the Paavo Nurmi cabinet at Hotel Kämp, Pohjoisesplanadi 29, 00100
Helsinki.
FINANCIAL INFORMATION IN 2016
Aspo Plc's Interim Report for the second quarter will be published on August
17, 2016, and for the third quarter on October 27, 2016.
Helsinki, April 28, 2016
ASPO Plc
Aki Ojanen Arto Meitsalo
CEO CFO
For more information: Aki Ojanen, 09 521 4010, 0400 106 592, aki.ojanen
(a)aspo.com
DISTRIBUTION:
Nasdaq Helsinki
Key media
www.aspo.com
Aspo is a conglomerate that owns and develops businesses in Northern Europe and
growth markets 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.
[HUG#2007551]
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