2016-08-17 09:01:11 CEST
2016-08-17 09:01:11 CEST
REGULATED INFORMATION
Aspo - Half Year financial report
Aspo Group half year financial report, January 1 to June 30, 2016
ASPO Plc HALF YEAR FINANCIAL REPORT August 17, 2016, at 10:00 a.m.
ASPO GROUP HALF YEAR FINANCIAL REPORT, JANUARY 1 TO JUNE 30, 2016
Aspo: Net sales and operating profit turned into an increase
(Figures from the corresponding period in 2015 are presented in brackets.)
January-June 2016
- Aspo's net sales increased to EUR 214.7 (212.2) million.
- Operating profit improved to EUR 8.1 (7.1) million.
- Profit for the period fell to EUR 5.7 (10.3) million. The profit for the
comparative period includes a goodwill impairment loss of EUR 1.3 million and a
sales gain of EUR 4.9 million recognized in financial items.
- Earnings per share decreased to EUR 0.16 (0.32).
April-June 2016
- Aspo's net sales increased by 5% to EUR 116.2 (110.2) million.
- Operating profit improved by 17% and stood at EUR 4.8 (4.1) million.
- Profit for the quarter increased slightly to EUR 3.4 (3.3) million.
- Earnings per share were EUR 0.09 (0.10).
- The operating profit of ESL Shipping increased to EUR 2.9 (2.5) million. The
operating profit of Telko improved notably to EUR 3.0 (2.3) million. The
operating profit of Leipurin was low at EUR 0.4 (0.7) million. The operating
profit of Kauko decreased to EUR -0.3 (0.1) million.
Aspo issued a new hybrid bond of EUR 25 million and presented a voluntary tender
offer for a hybrid bond issued in 2013. The high interest in transactions and
their outcome are indications of the trust investors are showing in Aspo's
strategy and its expertise in eastern markets.
Kaukomarkkinat Ltd changed its name to Kauko Ltd.
Net sales in Russia, Ukraine and other CIS countries grew by 18%, and the region
became the largest market area for Aspo.
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. Signs of 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, for example the decrease in the Russian GDP is expected to have slowed
down or GDP is expected to turn to growth. Interest rates are expected to remain
at an unusually low level resulting in moderate financial expenses in Aspo.
Aspo's guidance for 2016 remains unchanged
The guidance will remain unchanged. Aspo's operating profit will be EUR 17-24
(20.6) million in 2016.
KEY FIGURES
4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2016 2015 % 2016 2015 % 2015
Net sales, MEUR 116.2 110.2 5.4 214.7 212.2 1.2 445.8
Operating profit, MEUR
*) 4.8 4.1 17.1 8.1 7.1 14.1 20.6
Operating profit, % 4.1 3.7 3.8 3.3 4.6
Profit before taxes,
MEUR **) 3.9 3.6 8.3 6.5 11.1 -41.4 21.3
Profit for the period,
MEUR **) 3.4 3.3 3.0 5.7 10.3 -44.7 19.8
Earnings per share, EUR 0.09 0.10 -10.0 0.16 0.32 -50.0 0.61
Net cash from operating
activities, MEUR -4.0 3.3 -221.2 -11.0 -4.1 -168.3 25.0
Equity per share, EUR 3.44 3.27 3.36
Return on equity, %
(ROE) 11.0 20.1 19.1
Equity ratio,% 33.4 33.7 33.8
Gearing, % 115.0 118.6 101.4
ESL Shipping, operating
profit, MEUR 2.9 2.5 16.0 5.1 5.8 -12.1 14.7
Leipurin, operating
profit, MEUR 0.4 0.7 -42.9 0.9 1.2 -25.0 2.4
Telko, operating profit,
MEUR *) 3.0 2.3 30.4 5.3 5.3 0.0 10.4
Kauko, operating profit,
MEUR *) -0.3 0.1 -400.0 -0.6 -1.9 68.4 -1.2
Items affecting comparability 1-6/2015
*) The operating profit includes an impairment loss of EUR -1.3 million related
to Kauko goodwill.
**) The profit includes an impairment loss of EUR -1.3 million related to Kauko
goodwill and a sales gain of EUR 4.9 million recognized in financial items.
Items affecting comparability 1-12/2015
*) The operating profit includes an impairment loss of EUR -1.3 million related
to Kauko 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 Kauko
goodwill, a sales gain of EUR 4.9 million recognized in financial items, and EUR
2.0 million in charges imposed by Finnish Customs and related advisor fees.
AKI OJANEN, CEO OF ASPO GROUP COMMENTS Q2:
"Aspo's net sales and operating profit have turned into an increase. Aspo has
been able to turn the previous decrease in net sales resulting from the general
economic situation into growth, while profitability has improved. Compared with
the comparative period, the most significant changes have been the strong euro-
denominated growth and high profitability in eastern markets. The growth in
eastern markets has accelerated, with net sales in Russia, Ukraine and other CIS
countries being EUR 38.1 (32.2) million and growth being 18% during the second
quarter. The operating profit in the market area was approximately 5%. Russia,
Ukraine and other CIS countries now make up our largest market area. The
investments of Aspo's businesses in personnel and operational expansion during
the difficult market situation have strengthened our position.
The exceptionally difficult market situation still continues in the
international dry bulk cargo market, for example, and the situation is Russia
has remained challenging. The investments of Aspo's businesses in special
expertise and the distinctiveness of services offered to different industries
will be rewarded through high profitability, for example, in the operations of
ESL Shipping.
The operating profit of ESL Shipping during the second quarter improved from the
comparative period, being at a good level considering the market situation and
the summer season. Shipping company's ability to produce good results is the
result of its unique ice-strengthened fleet and its service packages offered in
new markets. In addition to the Baltic Sea, our vessels have operated in the
northern regions of Russia and, in July, they started offering transportation
services from the Baffinland in the Canadian arctic to Europe.
Telko's net sales increased and operating profit improved. Net sales grew both
in the eastern and western markets. The growth rate of operating profit was
higher in the western markets than it was in the eastern markets.
The Group's results are not yet at the target level as a whole. Leipurin and
Kauko are both undergoing investments and development activities, which was
reflected in their producing weaker results during the second quarter. The
Group's general administrative costs fell after the Group improved the
efficiency of its use of premises and leased out its unnecessary premises. In
addition, lower personnel costs produced cost savings. We are expecting the
operating result of other operations to improve annually by approximately EUR
1.5 million.
During the first half of the year, net cash from operating activities was
unusually low. Working capital has been tied, in particular, to the strong
growth of Telko. We are expecting our net cash from operating activities to turn
positive during the second half of the year."
ASPO GROUP
NET SALES
Net sales by segment
4-6/2016 4-6/2015 Change 1-6/2016 1-6/2015 Change 1-12/2015
MEUR MEUR % MEUR MEUR % MEUR
ESL Shipping 16.7 18.2 -8.2 32.9 36.4 -9.6 76.2
Leipurin 28.8 29.7 -3.0 55.0 58.0 -5.2 117.8
Telko 62.2 55.2 12.7 111.6 105.2 6.1 215.3
Kauko 8.5 7.1 19.7 15.2 12.6 20.6 36.5
Other
operations 0.0 0.0 - 0.0 0.0 - 0.0
Total 116.2 110.2 5.4 214.7 212.2 1.2 445.8
There is no considerable inter-segment net sales.
Net sales by market area
4-6/2016 4-6/2015 Change 1-6/2016 1-6/2015 Change 1-12/2015
MEUR MEUR % MEUR MEUR % MEUR
Finland 37.7 38.5 -2.1 71.8 73.9 -2.8 147.7
Scandinavia 12.6 12.9 -2.3 23.4 24.6 -4.9 51.8
Baltic
countries 12.6 13.3 -5.3 24.6 25.0 -1.6 50.4
Russia, Ukraine
+ other CIS
countries 38.1 32.2 18.3 64.7 58.6 10.4 128.3
Other
countries 15.2 13.3 14.3 30.2 30.1 0.3 67.6
Total 116.2 110.2 5.4 214.7 212.2 1.2 445.8
Net sales increased the most in the market area of Russia, Ukraine and other CIS
countries, growing by 18%. The increased net sales of Telko had a particular
impact on the growth in the region. Net sales of the Other countries market area
grew by 14%.
EARNINGS
Operating profit by segment
4-6/2016 4-6/2015 Change 1-6/2016 1-6/2015 Change 1-12/2015
MEUR MEUR % MEUR MEUR % MEUR
ESL Shipping 2.9 2.5 16.0 5.1 5.8 -12.1 14.7
Leipurin 0.4 0.7 -42.9 0.9 1.2 -25.0 2.4
Telko 3.0 2.3 30.4 5.3 5.3 0.0 10.4
Kauko -0.3 0.1 -400.0 -0.6 -1.9 68.4 -1.2
Other operations -1.2 -1.5 20.0 -2.6 -3.3 21.2 -5.7
Total 4.8 4.1 17.1 8.1 7.1 14.1 20.6
Earnings per share
Earnings per share were EUR 0.16 (0.32) for the first half of the year. Equity
per share was EUR 3.44 (3.27). The result for the comparative period was
significantly improved by a sales gain of EUR 4.9 million recognized in
financial items through the sale of shares in Alandia Insurance owned by ESL
Shipping. Its effect on earnings per share 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 half of the year was 3.8% (3.3), return
on equity was 11.0% (20.1), and gearing was 115.0% (118.6).
OUTLOOK FOR 2016
International economic uncertainty has continued, which has reflected
particularly strongly in demand for basic raw materials, 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 or will turn into increase. 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.
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 half of the year thanks to the Arctic region
agreements.
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.
4-6/2016 4-6/2015 Change % 1-6/2016 1-6/2015 Change % 1-12/2015
Net sales,
MEUR 16.7 18.2 -8.2 32.9 36.4 -9.6 76.2
Operating
profit, MEUR 2.9 2.5 16.0 5.1 5.8 -12.1 14.7
Operating
profit, % 17.4 13.7 15.5 15.9 19.3
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. Its Supramax vessels have operated in international traffic,
while being partly time-chartered. The shipping company's transportation
operations in the Baltic Sea and the North Sea are based on long-term customer
agreements and established customer relationships. ESL Shipping expanded its
operations to the demanding transportation of project cargo in the Russian
arctic where one of its vessels operated during the second quarter. The vessel
which was time-chartered until the end of the review period and its crew
performed excellently in demanding conditions. Three vessels were docked during
the second quarter.
ESL Shipping's net sales in April-June stood at EUR 16.7 (18.2) million. The
decrease in net sales was mostly affected by lower fuel prices and the market
situation of Supramax vessels which continued to be poor.
Operating profit in April-June increased clearly from the comparative period to
EUR 2.9 (2.5) million, representing 17% (14) of net sales. Profitability was
especially improved by the management of costs and capacity, as well as the
profitable chartering out of one vessel. The chartering balanced the shipping
company's vessel capacity in the Baltic Sea during the summer season, which is
usually characterized by low transportation volumes, and there was no need to
adapt the pusher-barge fleet or marine personnel as during comparative periods.
The shipping company's Supramax vessels still produced a loss during the second
quarter; however, the result was better than during the first quarter. The
realized cargo price level of Supramax vessels continued to be significantly
above the general spot market level during the review period. The profitability
of other vessels improved, and the demand for loading and unloading operations
at sea remained high.
ESL Shipping transported 2.4 (2.4) million tons of cargo in April-June, i.e. the
same amount as in the year before. In the steel and energy industry,
transportation volumes were at the previous year's level. Other transportation
made up a higher relative share from operating days than in the comparative
period. According to its strategy, the shipping company has started the
transportation of biofuels in the Baltic Sea, and it has also succeeded in
stabilizing and expanding its operations in the Arctic.
The shipping company's project to build the world's first large LNG-fueled dry
bulk cargo vessels is proceeding according to plans.
Net sales during the first half of the year stood at EUR 32.9 (36.4) million,
while operating profit was EUR 5.1 (5.8) million.
Outlook for ESL Shipping in 2016
International dry bulk cargo prices are expected to remain low. The freight
rates of large dry bulk cargo vessels have remained at a low level, regardless
of the recent increase in prices. The situation will also be reflected in the
market of large ice-strengthened vessels, reducing the market's price levels.
Most of the shipping company's transportation capacity has been secured in the
Baltic Sea and Northern Europe through long-term agreements, and the shipping
company's capacity utilization is estimated to be high. The shipping company has
signed an agreement on the transportation of raw material from Baffinland in the
Canadian Arctic to Europe, and at least one of the two Supramax vessels will
operate in this transportation during the shipping season until the end of
October. ESL Shipping's services are based on the company's ability to operate
in the arctic ice region and unload ships at sea.
Total transportation volumes in the energy industry are expected to be a little
higher than in the previous year, largely because of an increase in the
transportation of bioenergy. The transportation volumes of the steel industry
are expected to remain at the comparative period's level. If required, the
capacity will be adapted to the demand by chartering additional external
capacity.
Demand for the loading and unloading of large vessels at sea is expected to be
high. According to its strategy, the shipping company will continue 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. During
the latter half of 2016, three vessel units will be docked as planned.
LEIPURIN
Leipurin is a unique provider of solutions for bakery and confectionery
products, the food industry and, according to its revised strategy, the out of
home (OOH) market. The solutions offered by Leipurin range, for example, from
product development, recipes, raw materials, training and equipment all the way
to the design of sales outlets. As part of its full-range services, Leipurin
designs, delivers and maintains production lines for the baking industry, baking
units and other machinery and equipment required in the food industry. Leipurin
uses leading international manufacturers as its raw material and machinery
supply partners. Leipurin operates in Finland, Russia, the Baltic countries,
Poland, Ukraine, Kazakhstan and Belarus.
4-6/2016 4-6/2015 Change % 1-6/2016 1-6/2015 Change % 1-12/2015
Net sales,
MEUR 28.8 29.7 -3.0 55.0 58.0 -5.2 117.8
Operating
profit, MEUR 0.4 0.7 -42.9 0.9 1.2 -25.0 2.4
Operating
profit, % 1.4 2.4 1.6 2.1 2.0
In western markets, the prices of grain-based and other key raw materials have
mainly remained at the comparative period's level, apart from the increasing
prices of vegetable oils and palm-based raw materials. In Finland, the total
number of bakeries continued to decrease due to market consolidation. The market
situation remained unchanged in other EU countries. In the Baltic region, the
use of frozen products is increasing, particularly at in-store bakeries.
In Russian retail, sales fell by approximately 7% during the second quarter
compared to the comparative period, with the consumption and price level of
industrial bread falling along with the general trend. The increasing range of
breads of lower price categories offered by in-store bakeries shifted the
consumption of bread towards low-cost products. In Russia, the bakery industry
has attempted to replace raw materials with less expensive and locally produced
materials. Despite the challenging market situation in Russia, various companies
in the bakery industry have recently implemented or issued news of investment
projects related to local production. In Russia, inflation in food products fell
to approximately 6%. In other operating countries of Leipurin in eastern
markets, the market situation remained relatively unchanged from the beginning
of the year.
Net sales of Leipurin for the second quarter fell from the comparative period,
totaling EUR 28.8 (29.7) million. Operating profit stood at EUR 0.4 (0.7)
million. The operating profit rate during the quarter was 1.4% (2.4). Costs were
higher than normal due to, for example, the change of Managing Director in
February and additional investments made to develop the strategy of Leipurin.
During the second quarter, the net sales of Leipurin bakery raw materials
remained at the comparative period's level in the western markets. In Finland,
bakery raw materials operations increased in several product groups and customer
segments. Sales in the OOH customer segment, associated with the new strategy in
Finland, developed positively. Leipurin e-sales were launched in Finland during
the review period. In Poland, net sales of Leipurin fell from the comparative
period as sales of frozen berries were postponed to the next quarters.
Operations in the Baltic region developed positively.
Net sales of bakery raw materials in the eastern markets, i.e. in Russia,
Ukraine and other CIS countries, increased by approximately 8% during the second
quarter. In Ukraine, net sales grew as a result of an increase in sales volumes.
Sales of the range of frozen products launched in the OOH market in Russia have
gotten off to a good start. The operating profit of bakery raw materials in
Russia decreased from the comparative period, being approximately 8%.
During the second quarter, net sales of Leipurin in Russia, Ukraine and other
CIS countries, including machinery sales, fell from the comparative period and
stood at EUR 7.7 (8.0) million, with operating profit being approximately 6%.
Machinery and equipment investments remained at a low level in all operating
countries of Leipurin
during the second quarter. Net sales of machinery operations fell in all main
market areas and operations continued to produce a loss. With regard to
principal equipment sales, net sales decreased due to the poor investment demand
for baking lines. The result of Leipurin's own production improved
significantly, despite the decrease in net sales. The improvement in Leipurin's
own production was affected by earnings improvement programs and the adaptation
of resources at the Nastola factory.
Net sales of Leipurin fell by 5% during the first half of the year and stood at
EUR 55.0 (58.0) million. Its operating profit fell to EUR 0.9 (1.2) million. Net
sales in Russia, Ukraine and other CIS countries fell by 4% to EUR 13.8 (14.3)
million.
Outlook for Leipurin for 2016
The market situation is expected to remain challenging in key markets of
Leipurin. The market position is expected to remain strong in the industrial
baking sector in Finland, the Baltic region and Russia, with growth being
especially expected in the OOH sector.
The weakening of economic situation in Russia is estimated to have stopped but
inflation to remain high, due to which willingness to invest will be at a low
level in Russia. The purchasing power of consumers is expected to decrease
further. The local procurement of bakery raw materials has been increased to
replace imported raw materials. The purpose is to respond to changes in demand
by developing a product range with more competitive prices. The objective is to
increase the share of local raw materials above 50%. Local procurement has been
decentralized and, currently, there are already dozens of significant partners.
Leipurin will maintain its high profitability and strengthen its market position
in the area.
The OOH market comprises a significant new operating area for Leipurin and,
during the rest of the year, Leipurin will continue its expansion in the OOH
market in the form of various product launches, activities and new business
models.
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.
4-6/2016 4-6/2015 Change % 1-6/2016 1-6/2015 Change % 1-12/2015
Net sales,
MEUR 62.2 55.2 12.7 111.6 105.2 6.1 215.3
Operating
profit,
MEUR *) 3.0 2.3 30.4 5.3 5.3 0.0 10.4
Operating
profit, % 4.8 4.2 4.7 5.0 4.8
*) The operating profit 1-12/2015 includes EUR 0.6 million in charges imposed by
Finnish Customs and related advisor fees.
During the second quarter, the prices of the plastic raw materials sold by Telko
increased sequentially. The price level of industrial chemicals remained low
compared with long-term averages. Demand for raw materials in Telko's geographic
operating area has not increased notably.
The increase in the net sales of Telko accelerated during the second quarter.
Net sales grew by 13% and stood at EUR 62.2 (55.2) million. The operating profit
increased to EUR 3.0 (2.3) million. The operating profit rate rose to 4.8%
(4.2). With regard to Telko's market areas, the relative share of the eastern
markets from Telko's net sales increased, regardless of the ever challenging
market conditions in Russia and Ukraine. Net sales in Russia, Ukraine and other
CIS countries totaled EUR 28.6 (24.2) million, representing a growth of 18%. The
operating profit rate in the market area was less than 5%. Profitability
improved in Russia and fell in Ukraine.
During the second quarter, the net sales and operating profit of the chemicals
business increased significantly from the comparative period. The net sales of
the plastics business improved, but its profitability decreased, in particular,
due to lower profitability in Ukraine. Operations involving Castrol's automotive
motor oils started in Finland during the second quarter.
Net sales of Telko increased by 6% during the first half of the year and stood
at EUR 111.6 (105.2) million. The operating profit remained at the level of the
corresponding period in the previous year, being EUR 5.3 (5.3) million. Net
sales in Russia, Ukraine and other CIS countries totaled EUR 47.9 (43.5)
million, representing an increase of 10%.
Outlook for Telko for 2016
The prices of chemicals and plastics used in the industry are expected to remain
low due to low oil prices and industrial demand.
Total demand in Telko's western markets is expected to develop positively.
General development in the eastern markets is difficult to evaluate. The steep
decline in the Russian national economy is expected to stop and possibly turn to
an increase. There will be moderate industrial investments in the eastern
markets due to strong fluctuations in exchange rates and high interest rates.
In the eastern markets, the decrease in the total demand for the products
supplied by Telko seems to have stopped, but no significant growth is still not
to be expected. The main design process for the logistics center to be built in
the St. Petersburg region is underway and is expected to be completed by the end
of the year. The construction schedule will be decided on later once the permits
required for the premises have been obtained. This investment supports Telko's
strategy in Russia and strengthens the company's future position in the Russian
market.
KAUKO
Kauko is a specialist in demanding mobile knowledge work environments. It
supplies the best tools, solutions for improving productivity and services for
securing effective use for the needs of healthcare services, industries,
logistics and the authorities. Kauko solutions combine customized applications,
devices and services. Its product range also includes products that improve
energy efficiency. Kauko's key market areas are Finland and Germany.
4-6/2016 4-6/2015 Change % 1-6/2016 1-6/2015 Change % 1-12/2015
Net sales,
MEUR 8.5 7.1 19.7 15.2 12.6 20.6 36.5
Operating
profit, MEUR
*) -0.3 0.1 -400.0 -0.6 -1.9 68.4 -1.2
Operating
profit, % -3.5 1.4 -3.9 -15.1 -3.3
*) In 2015 the operating profit included a EUR 1.3 million goodwill impairment
loss recognized in the first quarter.
Kauko's business operations developed as planned during the second quarter.
Kaukomarkkinat changed its name to Kauko and modernized its brand to better
respond to the strategy of mobile knowledge work.
Net sales of Kauko grew by 20% in the second quarter, amounting to EUR 8.5 (7.1)
million. Its operating result stood at EUR -0.3 (0.1) million.
Net sales of mobile knowledge work were at the comparative period's level, and a
significant agreement on hardware sales was signed in Finland during the second
quarter. Contractual deliveries will take place during the second half of the
year. Orders for the third quarter are at a good level. The company invested in
its ability to build total solutions for mobile knowledge work by recruiting new
key employees, which increased costs. The first projects associated with total
solutions for mobile knowledge work have been started in Finland.
Kauko GmbH, a company established in Germany, will first focus on the healthcare
sector and the sale of the mobile workstation developed by Kauko in the
healthcare sector in Germany and Central Europe. During the review period, the
company recruited new key employees in Germany, which increased costs.
Operations in Germany will produce a loss during the initial stages.
Sales of energy-efficiency equipment developed positively compared with the
comparative period. The most rapid growth was seen in solar power systems,
whereas sales of air source heat pumps were lower than in the comparative
period.
Net sales of Kauko in the first half of the year increased by 21% to EUR 15.2
(12.6) million. Its operating result stood at EUR -0.6 (-1.9) million. The
operating result was reduced in the comparative period by the sale of the
Industrial business, in conjunction with which Aspo assessed the goodwill of the
Kauko segment, and recognized an impairment loss of EUR 1.3 million.
Outlook for Kauko for 2016
Kauko modernized its brand and customer communications during the spring by
changing its name to Kauko and revising its identity and communications elements
in full. According to its new strategy, Kauko continued to recruit key employees
and expand its service range during the spring. Kauko will invest in the
development and sale of solutions for demanding mobile knowledge work. This
requires the recruitment of additional technical and commercial specialists and
the further 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. Kauko 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 Kauko, at first in Finland and
Germany, followed by other European markets.
The volumes and profitability of energy products are expected to improve, in
particular, through the growing demand for solar power systems.
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.
4-6/2016 4-6/2015 Change % 1-6/2016 1-6/2015 Change % 1-12/2015
Net sales,
MEUR 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Operating
profit, MEUR -1.2 -1.5 20.0 -2.6 -3.3 21.2 -5.7
The operating profit of other operations was EUR -1.2 (-1.5) million for the
second quarter and EUR -2.6 (-3.3) million for the first half of the year. This
improvement is based on a decrease in fixed costs achieved by improved effiency,
for example, in rents and employee benefit expenses.
FINANCING
The Group's cash and cash equivalents totaled EUR 19.3 million (12/2015: EUR
23.9 million). The consolidated balance sheet included a total of EUR 140.4
million in interest-bearing liabilities (12/2015: EUR 127.9 million). The
average rate of interest-bearing liabilities was 1.6% at the end of the review
period (12/2015: 1.7%). Non-interest-bearing liabilities totaled EUR 72.3
million (12/2015 EUR 74.3 million).
Aspo Group's gearing was 115.0% (12/2015: 101.4%) and its equity ratio was
33.4% (12/2015: 33.8%). At the end of the second quarter of 2015, gearing was
118.6% and the equity ratio was 33.7%. A dividend of EUR 12.5 million was paid
in the second quarter.
The Group's net cash from operating activities in January-June decreased from
the comparative period to EUR -11.0 (-4.1) million. During the review period,
the change in working capital stood at EUR -22.7 (-16.2) million. Working
capital has been tied, in particular, to the strong growth of Telko.
Net cash from investing activities totaled EUR -2.1 (2.6) million. Sales gain
from shares had a positive impact on net cash from investing activities during
the comparative period. The Group's free cash flow (net cash from operating
activities + net cash from investing activities) was EUR -13.1 (-1.5) 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 remained fully unused at the end of the review
period. During the quarter, a revolving credit facility of EUR 20 million was
signed to replace a facility of a similar amount to fall due at the end of
2016. No other significant loan agreements will expire in 2016. EUR 19 million
of Aspo's EUR 80 million commercial paper program were in use.
On May 27, 2016, Aspo issued a new hybrid bond of EUR 25 million. The fixed
coupon rate of the bond is 6.75% per annum. The bond has no specified maturity
date, but the company may exercise an early redemption option after four years
of its issuance date. On May 26, 2016, Aspo announced the result of a voluntary
tender offer for a hybrid bond it issued in November 2013. EUR 15.4 million of
the total loan capital of EUR 20 million was accepted for purchase by Aspo. Aspo
may exercise an early redemption option of the remaining loan capital in
November 2016.
Aspo has hedged its interest rate risk by means of an interest rate swap. Its
fair value on June 30, 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 -0.3 million on June 30, 2016.
The financial instrument is on level 2 of the fair value hierarchy.
INVESTMENTS
The Group's investments stood at EUR 1.6 (1.1) million in the second quarter,
consisting mainly of maintenance investments.
Investments by segment, acquisitions excluded
4-6/2016 4-6/2015 Change 1-6/2016 1-6/2015 Change 1-12/2015
MEUR MEUR % MEUR MEUR % MEUR
ESL Shipping 1.2 0.7 71.4 1.6 1.4 14.3 13.2
Leipurin 0.1 0.2 -50.0 0.1 0.3 -66.7 0.5
Telko 0.3 0.1 200.0 0.5 0.5 0.0 1.0
Kauko 0.0 0.0 - 0.0 0.0 - 0.1
Other operations 0.0 0.1 -100.0 0.0 0.1 -100.0 0.3
Total 1.6 1.1 45.5 2.2 2.3 -4.3 15.1
PERSONNEL
Personnel by segment, period-end
6/2016 6/2015 Change % 12/2015
ESL Shipping 226 221 2.3 223
Leipurin 316 287 10.1 299
Telko 268 259 3.5 265
Kauko 48 44 9.1 46
Other operations 23 24 -4.2 24
Total 881 835 5.5 857
At the end of the review period, Aspo Group had 881 (835) employees. The number
of personnel has increased, in particular, in the Russian companies of Leipurin
and Telko. The personnel of Kauko has increased as a result of its new
operations in Germany.
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 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 has operated in an exceptionally challenging business environment. The
economic situation continues to be poor in Aspo's operating countries but,
during the second quarter, it did not decrease heavily in any country. GNP is
growing slowly in western countries and while the decline has decelerated in the
east, inflation still remains high. Cargo prices are low, even though they have
turned to a slight increase. Despite a slight recovery, the general economic
uncertainty maintains risks in all of Aspo's businesses.
The good results of operations in Russia may suffer as a consequence of the
general uncertainty in the region and the exceptionally high profitability
resulting from the unstable market in Ukraine is returning to normal. In
particular the uncertainty in eastern markets and any changes in exchange rates
may have an impact on demand for and the competitiveness of products. Growth in
eastern and western markets is limited by the low demand for investment assets.
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, consumer demand
has slowed down and the economy has contracted in Russia and Ukraine. According
to estimates, the Russian economy will turn to growth during the next year. 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 decreased economic situation is reflected in financial markets,
payments and companies' investments 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. Raw
materials and products produced in Russia having been increasingly entered into
production despite the decrease in quality.
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 from Russia, 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. The need for
replacement energy products may correspondingly increase transportation volumes
and, for this reason, it is difficult to estimate future volumes. The low level
of international freight indices and the increases in international vessels in
certain 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. 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 steel production, 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 long-term changes in cargo prices, investment
trends, and changes in trade structures, especially in western markets. In
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. The accumulation of investments may cause long-term changes
in the competitive situation and customer behavior.
Rapid changes in economic structures may cause risks due to changes in the
customer or principal 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 Aspo's operating environment has evened out
during the review period, operational risks have remained unchanged. These
include risks related to supply chains and persons.
The focus of Aspo's growth has for long been on emerging market areas, where
risks decelerating growth are affected by factors such as exchange and interest
rates, the level of and changes in the global market prices of raw materials,
industrial and commercial investments, customer liquidity, changes in
legislation and import regulations, and inactivity by the authorities or
corruption.
Economic growth and, alternatively, any decrease in production may have an
impact on demand for raw materials in the eastern markets. The political and
economic 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 and other CIS countries 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 is not possible in all conditions, and
especially without interruptions. Changes in exchange rates may also weaken
results and reduce equity on the balance sheet as a result of translation
differences. Then again, changes in exchange rates may also strengthen the
result and balance sheet. 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 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 financial 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 financing risks can be found in the notes to the
financial statements.
SHARE CAPITAL AND SHARES
Aspo Plc's share capital on June 30, 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-June 2016, a total of 1,424,313 Aspo Plc shares with a market
value of EUR 9.7 million were traded on Nasdaq Helsinki, in other words, 4.6% of
the shares changed hands. During the review period, the share price reached a
high of EUR 7.59 and a low of EUR 6.00. The average price was EUR 6.77 and the
closing price at period-end was EUR 6.42. At the end of the review period, the
market value excluding treasury shares was EUR 196.4 million.
The number of Aspo Plc shareholders was 9,168 at period-end. A total of 648,816
shares, or 2.1% of the share capital, were nominee registered or held by non-
domestic shareholders.
Aspo Plc's new trading code (stock symbol) in Nasdaq Helsinki is ASPO.
Previously it was ASU1V. The new trading code was effective on June 27, 2016.
Flagging notification
On May 31, 2016 shareholder Tatu Vehmas informed that Aatos Vehmas and Liisa
Vehmas have authorized him to use the voting rights of Aspo shares owned by them
so that his share of the voting rights in Aspo Plc has increased above five per
cent (5%).
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.
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 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
has not used the authorization.
Authorization of the Board of Directors to decide on a share issue of treasury
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 treasury shares. An aggregate maximum amount of 900,000
shares may be conveyed based on the authorization. The authorization will remain
in force until September 30, 2018.
The Board of Directors has used the authorization on March 18, 2016 and granted
88,970 treasury shares to employees included in the earnings period 2015 of the
share-based incentive plan 2015-2017.
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. The
Board of Directors has not used the authorization.
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 lodged an appeal against the District Court's judgement and, in its ruling
issued on August 8, 2016, the Court of Appeal overruled the Helsinki District
Court's judgement and dismissed ESL Shipping's legal action as time-barred. The
company is considering to apply for a leave to appeal from the Supreme Court.
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 taken into account in the interim report during the
period over which the imposed payment is received.
Helsinki August 17, 2016
ASPO Plc
Board of Directors
ASPO GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
4-6/2016 4-6/2015
MEUR % MEUR %
Net sales 116.2 100.0 110.2 100.0
Other operating income 0.5 0.4 0.4 0.4
Materials and services -85.3 -73.4 -79.5 -72.1
Employee benefit expenses -10.5 -9.0 -9.8 -8.9
Depreciation, amortization and impairment losses -2.9 -2.5 -2.6 -2.4
Other operating expenses -13.2 -11.4 -14.6 -13.2
Operating profit 4.8 4.1 4.1 3.7
Financial income and expenses -0.9 -0.8 -0.5 -0.5
Profit before taxes 3.9 3.4 3.6 3.3
Income taxes -0.5 -0.4 -0.3 -0.3
Profit for the period 3.4 2.9 3.3 3.0
Other comprehensive income
Items that may be reclassified to profit or loss in
subsequent periods:
Translation differences 1.8 0.2
Cash flow hedges 1.0 0.1
Available-for-sale financial assets 0.0
Reclassification 0.0
Income tax on other comprehensive income -0.1 0.0
Other comprehensive income for the period, net of
taxes 2.7 0.3
Total comprehensive income 6.1 3.6
Profit attributable to shareholders 3.4 3.3
Total comprehensive income attributable to
shareholders 6.1 3.6
Earnings per share, EUR 0.09 0.10
Diluted earnings per share, EUR 0.09 0.10
1-6/2016 1-6/2015 1-12/2015
MEUR % MEUR % MEUR %
Net sales 214.7 100.0 212.2 100.0 445.8 100.0
Other operating income 0.6 0.3 0.9 0.4 1.2 0.3
Materials and services -155.6 -72.5 -150.6 -71.0 -318.2 -71.4
Employee benefit expenses -20.6 -9.6 -21.1 -9.9 -41.0 -9.2
Depreciation, amortization and
impairment losses -5.7 -2.7 -6.7 -3.2 -12.5 -2.8
Other operating expenses -25.3 -11.8 -27.6 -13.0 -54.7 -12.3
Operating profit 8.1 3.8 7.1 3.3 20.6 4.6
Financial income and expenses -1.6 -0.7 4.0 1.9 0.7 0.2
Profit before taxes 6.5 3.0 11.1 5.2 21.3 4.8
Income taxes -0.8 -0.4 -0.8 -0.4 -1.5 -0.3
Profit for the period 5.7 2.7 10.3 4.9 19.8 4.4
Other comprehensive income
Items that may be reclassified
to profit or loss in
subsequent periods:
Translation differences 1.5 0.5 -5.8
Cash flow hedges -0.7 0.1 0.3
Available-for-sale financial
assets 1.8 1.8
Reclassification -4.9 -4.9
Income tax on other
comprehensive income 0.0 0.6 0.6
Other comprehensive income for
the period, net of taxes 0.8 -1.9 -8.0
Total comprehensive income 6.5 8.4 11.8
Profit attributable to
shareholders 5.7 10.3 19.8
Total comprehensive income
attributable to shareholders 6.5 8.4 11.8
Earnings per share, EUR 0.16 0.32 0.61
Diluted earning per share, EUR 0.16 0.32 0.61
ASPO GROUP CONSOLIDATED BALANCE SHEET
6/2016 6/2015 Change 12/2015
MEUR MEUR % MEUR
Assets
Other intangible assets 10.1 11.8 -14.4 11.1
Goodwill 42.7 42.7 0.0 42.7
Tangible assets 113.8 108.8 4.6 116.4
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 170.4 167.3 1.9 174.2
Inventories 65.7 52.0 26.3 48.4
Accounts receivable and other receivables 62.6 64.1 -2.3 58.3
Cash and cash equivalents 19.3 14.9 29.5 23.9
Total current assets 147.6 131.0 12.7 130.6
Total assets 318.0 298.3 6.6 304.8
Equity and liabilities
Share capital 17.7 17.7 0.0 17.7
Other equity 87.6 82.1 6.7 84.9
Total equity 105.3 99.8 5.5 102.6
Non-current liabilities 116.3 78.0 49.1 121.1
Current liabilities 96.4 120.5 -20.0 81.1
Total shareholders' equity and liabilities 318.0 298.3 6.6 304.8
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 5.7 5.7
Translation differences 1.5 1.5
Cash flow hedges* -0.7 -0.7
Total comprehensive income -0.7 1.5 5.7 6.5
Transactions with owners:
Dividend payment -12.5 -12.5
Change in hybrid instruments 9.6 -1.1 8.5
Share-based incentive plan 0.4 -0.2 0.2
Transfer of reserves 0.2 -0.2 0.0
Total transactions
with owners 9.8 0.4 -14.0 -3.8
Equity June 30, 2016 17.7 4.3 -1.0 41.7 -2.3 -20.3 65.2 105.3
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 10.3 10.3
Translation differences 0.5 0.5
Cash flow hedges* 0.1 0.1
Available-for-sale financial
assets* -2.5 -2.5
Total comprehensive income -2.4 0.5 10.3 8.4
Transactions with owners:
Dividend payment -12.2 -12.2
Interest on hybrid instrument -0.7 -0.7
Share-based incentive plan 0.7 -0.5 0.2
Transfer of reserves -0.1 0.1 0.0
Total transactions
with owners -0.1 0.7 -13.3 -12.7
Equity June 30, 2015 17.7 4.3 -0.5 31.9 -2.7 -15.5 64.6 99.8
* net of taxes
ASPO GROUP CONSOLIDATED CASH FLOW STATEMENT
1-6/2016 1-6/2015 1-12/2015
MEUR MEUR MEUR
CASH FLOWS FROM OPERATING ACTIVITIES
Operating profit 8.1 7.1 20.6
Adjustments to operating profit 5.8 7.0 13.4
Change in working capital -22.7 -16.2 -4.2
Interest paid -1.7 -1.5 -3.1
Interest received 0.3 0.5 0.6
Income taxes paid -0.8 -1.0 -2.3
Net cash from operating activities -11.0 -4.1 25.0
CASH FLOWS FROM INVESTING ACTIVITIES
Investments in tangible and intagible assets -2.1 -2.0 -5.5
Advance payments for vessels -9.2
Proceeds from sale of tangible assets 0.1 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 0.1
Net cash from investing activities -2.1 2.6 -9.9
CASH FLOWS FROM FINANCING ACTIVITIES
Change in current loans 17.1 13.5 -21.9
Change in non-current loans -4.7 -4.4 25.6
Repayments of hybrid instrument -15.7
Hybrid instrument, interests -0.6 -1.4
Proceeds from hybrid instrument issue 24.8
Dividends distributed -12.5 -12.2 -12.2
Net cash from financing activities 8.4 -3.1 -9.9
Change in cash and cash equivalents -4.7 -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 19.3 14.9 23.9
ASPO GROUP ASSETS AND LIABILITIES BY SEGMENT
Segments' assets, MEUR
6/2016 6/2015 12/2015
ESL Shipping 120.3 121.1 123.8
Leipurin 60.5 62.4 61.8
Telko 90.4 73.5 65.7
Kauko 22.3 21.3 26.8
Unallocated items 24.5 20.0 26.7
Total 318.0 298.3 304.8
Segments' liabilities, MEUR
6/2016 6/2015 12/2015
ESL Shipping 9.4 10.7 11.0
Leipurin 11.4 14.6 14.9
Telko 34.6 25.3 27.1
Kauko 8.5 5.4 12.6
Unallocated items 148.8 142.5 136.6
Total 212.7 198.5 202.2
ACCOUNTING PRINCIPLES
Aspo Plc's half year financial report 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 consolidated financial statements on
December 31, 2015. The information in this report is unaudited.
Aspo Plc has adopted the guidance on alternative key figures issued by the
European Securities and Market Authority (ESMA). In addition to IFRS figures,
the company releases other commonly used key figures which are mainly derived
from the statement of comprehensive income and balance sheet. According to the
management, key figures clarify the picture drawn by the statement of
comprehensive income and balance sheet of Aspo's financial performance and
financial position. The calculation formulas of key figures have been described
on page 70 of the Year 2015 report.
SEGMENT REPORTING
Aspo Group's operational segments are ESL Shipping, Leipurin, Telko and Kauko.
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, Wednesday August
17, 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 third quarter will be published on October
27, 2016.
Helsinki, August 17, 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 Kauko - 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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