ASPO Plc STOCK EXCHANGE RELEASE April 28, 2010 at 11.00 am
Net sales grew - ice conditions burdened ESL Shipping's operations
January-March 2010
- Aspo Group's net sales in January-March amounted to EUR 83.4 million (EUR
78.4 million)
- Operating profit was EUR 2.1 million (EUR 3.8 million)
- Profit before tax amounted to EUR 1.0 million (EUR 2.5 million)
- Earnings per share stood at EUR 0.02 (EUR 0.07)
- The Group's financial position improved clearly compared to the first quarter
in the previous year. Interest-bearing net debt stood at EUR 63.2 million (EUR
77.6 million) at the end of the period and net gearing was 92.1% (136.0%).
- During the review period the amount of committed revolving credit facilities
was decreased from EUR 80 million to EUR 50 million and a financing program that
applies to part of Telko's sales receivables was introduced as a new source of
financing.
- Aspo specifies its guidance. Aspo will increase its net sales and the Group
has the preconditions to improve its earnings per share. Previously Aspo
estimated that it has the preconditions to increase its net sales and improve
its earnings per share in 2010
KEY FIGURES 1-3/2010 1-3/2009 1-12/2009
Net sales, MEUR 83.4 78.4 329.4
Operating profit, MEUR 2.1 3.8 15.3
Share of net sales, % 2.5 4.8 4.6
Profit before tax, MEUR 1.0 2.5 11.7
Share of net sales, % 1.2 3.2 3.6
Personnel at the end of period 702 769 717
Earnings per share, EUR 0.02 0.07 0.33
EPS adjusted for dilution, EUR, 0.03 0.07 0.33
Comparable earnings per share, EUR 0.16
Equity per share, EUR 2.66 2.21 2.59
Equity ratio, % 36.2 27.8 34.6
Gearing, % 92.1 136.0 87.9
Aki Ojanen, Aspo's CEO:
"Aspo's net sales are increasing. Previous restructuring measures and increased
operational efficiency have a positive effect in particular on Telko's costs and
the Group's overall administrative costs.
Exceptional ice, wind and labor market conditions made it difficult to plan
shipping operations and burdened efficiency on the Baltic Sea. ESL Shipping has
usually performed stably - the last time ESL Shipping performed weaker than
expected and posted a EUR -0.5 million operating loss was in the icy winter
2003. This winter the conditions on the Baltic Sea were difficult. Vessels had
to wait for ice breaking help but tried to operate efficiently without the help
as well, which considerably increased fuel consumption. Demand for transport and
cargo prices remained at normal levels. Despite the difficult circumstances, ESL
Shipping was able to take care of the raw material transportation of its
Scandinavian customers so that they did not have to limit production.
Telko and Leipurin improved their operating profit and increased their net
sales. The Group's strategic goal is to grow in Russia, Ukraine and other CIS
countries. We were successful with this during the review period. Telko
increased its net sales in Russia compared to the first quarter last year by
72% and Leipurin by 33%.
We have reached the efficiency level in Group administration costs that
prevailed before the 2008 acquisition and the costs are not expected to increase
as net sales grows.
We expect the EU to give its decision concerning the new tonnage tax legislation
in Finland during the second quarter. Experts have estimated that law will be
implemented retroactively from the beginning of 2010. If the law takes force the
change would have a considerable positive effect on Aspo's profit after tax."
ASPO AS A COMPANY
Aspo is a conglomerate that owns and develops business operations in the Baltic
Sea region focusing on demanding B-to-B customers. Aspo's strong company brands
- ESL Shipping, Leipurin, Telko and Kaukomarkkinat - aim 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 continually
developed without any predefined schedules.
Aspo's operating segments are ESL Shipping, Leipurin, Telko and Kaukomarkkinat.
Other operations include Aspo Group's administration and other operations not
belonging to the business units.
The Group monitors its net sales on the basis of the following geographical
division: Finland, the Nordic countries, the Baltic countries, Russia and other
CIS countries (including Ukraine), and other countries.
OPERATIONAL PERFORMANCE
General uncertainty has continued in Aspo's main market areas. Of the
neighboring national economies, Russia is expected to have made an upturn
already, this expectation is supported by the strengthening ruble. The prices
for oil-based raw materials have improved slightly. The prices for raw materials
for food have decreased somewhat, but demand has remained good. The global
markets for dry bulk cargo have strengthened.
A possible considerable upturn in the real economy is still hard to predict.
ESL Shipping
ESL Shipping is the leading dry bulk shipping company operating in the Baltic
Sea area. At the end of the review period, the fleet consisted of 18 vessels, of
which the shipping company owns 14 in full. Three are rented and one is
partially owned.
1-3/2010 1-3/2009 Change 1-12/2009
Net sales, MEUR 17.3 17.3 0.0 63.8
Operating profit, MEUR 1.4 4.1 -2.7 14.7
Personnel 186 221 -35 194
The market for dry bulk cargo has strengthened globally. The shipping company
leased more capacity in the fall when it estimated that the winter will be
difficult due to ice conditions and customer demand will improve. The capacity
increase helped ensure that the cargo agreements of long-term customers were
fulfilled despite the difficult ice conditions. The capacity was in full use.
The shortage of capacity in Scandinavian ice breaking and the strike of Finnish
dockworkers made fleet operations difficult and exceptionally weakened ESL
Shipping's result in the review period. The aim of the operations was to ensure
that customer companies could operate with the desired capacity despite the
circumstances. In particular, operation of ice enforced vessels without ice
breaking help increased fuel consumption considerably and raised costs. In
March, two units, Steel and Hesperia, had to be docked due to ice damage.
The cargo volume carried in January-March amounted to 2.9 million tons (2.8).
The share of the steel industry was 2.1 million tons (1.3), and the energy
industry represented 0.7 million tons (1.3).
Net sales amounted to EUR 17.3 million (17.3). Profitability weakened and
operating profit was EUR 1.4 million (4.1).
A 20,000 dwt vessel is being built in India. The shipyard expects the vessel to
be completed this summer and to start trafficking on the Baltic Sea in late
fall. The vessel is in ESL Shipping's Eira class and will be built to the
highest ice class, 1A Super. Binding leasing financing has been secured for the
vessel.
Leipurin
Leipurin serves the baking and other sectors of food industry by supplying
ingredients, production machinery and production lines, as well as related
expertise. Leipurin operates in Finland, Russia, Poland, the Baltic countries
and Ukraine. In Russia, Leipurin has operations in several large cities in
addition to St. Petersburg and Moscow. Procurement operations are international.
1-3/2010 1-3/2009 Change 1-12/2009
Net sales, MEUR 25.2 21.7 3.5 99.3
Operating profit, MEUR 0.7 0.3 0.4 3.2
Personnel 224 184 40 218
The prices of food raw materials decreased slightly in the review period. Sales
of bakery machines suffered from the recession in Finland and the Baltic
countries but continued to develop favorably in Russia.
Sales development of bakery raw materials continued well and net sales increased
in particular in Russia and Finland. Leipurin has continued to focus on
increasing its market share in Russia. In Russia, net sales amounted to EUR 5.2
million (3.9), i.e. 21% of Leipurin's total net sales and operating profit
represented 6.1% of net sales. Leipurin's operating profit was 2.8% of net
sales. The company acquired in Latvia in 2009 has been fully integrated. In the
Hausjärvi machine factory, employees have been temporarily laid-off in the
bakery line unit.
Raw material sales for other food industries developed well and Leipurin is
preparing to establish itself as a raw material supplier of meat and other food
for industries in Russia and Baltic countries during the spring of 2010.
Telko
Telko is the leading expert and supplier of industrial chemicals and plastic raw
materials in the Baltic Sea region. It operates in Finland, the Baltic
countries, Scandinavia, Poland, Ukraine, Russia, and Belarus. Procurement
operations are international. Business is based on representation by the best
international principals and on the expertise of the personnel. Telko develops
the production and competitiveness of its customers' products in cooperation
with them.
1-3/2010 1-3/2009 Change 1-12/2009
Net sales, MEUR 34.5 28.8 5.7 128.8
Operating profit, MEUR 1.6 0.1 1.5 3.1
Personnel 191 232 -41 193
The prices for sold raw materials have improved slightly. Basic industrial
demand is still below 2008 levels but Telko's net sales are growing. Demand in
Finland and Scandinavia has decreased considerably from 2008 but demand in
Russia and Ukraine has continued improving. Of foreign currencies, the ruble
strengthened somewhat in the review period.
Telko was able to improve its profitability in industrial chemicals and plastic
raw materials. Profitability was in particular improved by growth in Russian
operations, by efficiency measures carried out in 2009 and by cost savings.
Collection of the EUR 0.3 million receivable that had been written down in 2009
in accordance with the prudence principle was successful, which helped improve
Telko's result.
Among market areas, net sales in Russia and Ukraine grew heavily and was EUR
11.2 million (6.5) i.e. 32% of Telko's net sales. Operating profit from these
countries represented 7.6% of net sales while Telko's overall operating profit
represented 4.6% of net sales.
Kaukomarkkinat
Kaukomarkkinat specializes in energy efficiency technology, solutions to improve
efficiency in the process industry, and security and digital products.
Operations are based on the products of the best companies in the industry and
the willingness of the company's own experts to improve the operations and
efficiency of its customers. Kaukomarkkinat operates in Finland, Poland, Russia,
China, and Vietnam.
1-3/2010 1-3/2009 Change 1-12/2009
Net sales, MEUR 6.4 9.7 -3.3 36.4
Operating profit, MEUR -0.4 1.0 -1.4 0.5
Personnel 87 96 -9 90
During the review period, the sales of air-source heat pumps suffered in
particular from tightening competition and more difficult installations caused
by the cold. The result from air-source heat pump sales was negative.
Kaukomarkkinat has launched a new training program for mechanics to ensure
high-quality after-sales services in all distribution channels. Data, security
and AV sales developed well. No considerable projects materialized as income in
Chinese project sales during the review period and the operations were loss
making.
Other operations
Other operations include Aspo Group's administration and other operations not
belonging to the business units. The desired cost efficiency in administrative
costs has been reached since the fourth quarter of 2009.
1-3/2010 1-3/2009 Change 1-12/2009
Net sales, MEUR 0.0 0.9 -0.9 1.1
Operating profit, MEUR -1.2 -1.7 0.5 -6.2
Personnel 14 36 -22 22
NET SALES
Aspo Group's net sales grew by EUR 5.0 million or 6.4% to EUR 83.4 million
(78.4).
Net sales by segment, MEUR 1-3/2010 1-3/2009 Change 1-12/2009
ESL Shipping 17.3 17.3 0.0 63.8
Leipurin 25.2 21.7 3.5 99.3
Telko 34.5 28.8 5.7 128.8
Kaukomarkkinat 6.4 9.7 -3.3 36.4
Other operations 0.0 0.9 -0.9 1.1
Total 83.4 78.4 5.0 329.4
There is no considerable inter-segment net sales.
Net sales by market area, MEUR 1-3/2010 1-3/2009 Change 1-12/2009
Finland 35.8 37.1 -1.3 151.8
Nordic countries 11.2 7.0 4.2 30.0
Baltic countries 9.0 7.5 1.5 37.0
Russia + other CIS countries 17.0 11.6 5.4 56.2
Other countries 10.4 15.2 -4.8 54.4
Total 83.4 78.4 5.0 329.4
Net sales in Russia, Ukraine and other CIS countries have developed well in
Telko and Leipurin. The share of Russia is emphasized when ESL Shipping's raw
material export transportations from Russia are included. In the review period,
ESL Shipping's coal transports from Russia were low, due to the customer's
winter stocks and the ice conditions.
1-3/2010 1-3/2009 Change 1-12/2009
Russia + other CIS countries 22.0 18.3 3.7 87.9
EARNINGS
Aspo Group's operating profit in January-March amounted to EUR 2.1 million
(3.8). ESL Shipping's operating profit decreased to EUR 1.4 million (4.1).
Leipurin's operating profit was EUR 0.7 million (0.3). Telko's operating profit
increased by EUR 1.5 million to EUR 1.6 million (0.1). Kaukomarkkinat's
operating profit was EUR -0.4 million (1.0).
Other operations include Aspo Group's administration and a small share of other
items not belonging to the business units. The operating profit of other
operations was EUR -1.2 million in the red (-1.7).
Operating profit by segment, MEUR
1-3/2010 1-3/2009 Change 1-12/2009
ESL Shipping 1.4 4.1 -2.7 14.7
Leipurin 0.7 0.3 0.4 3.2
Telko 1.6 0.1 1.5 3.1
Kaukomarkkinat -0.4 1.0 -1.4 0.5
Other operations -1.2 -1.7 0.5 -6.2
Total 2.1 3.8 -1.7 15.3
Earnings per share
Earnings per share was EUR 0.02 (0.07) and diluted earnings per share was EUR
0.03 (0.07). Equity per share was EUR 2.66 (2.21).
INVESTMENTS
The Group's investments totaled EUR 0.4 million (1.5).
Investments by segment, acquisitions excluded, MEUR
1-3/2010 1-3/2009 Change 1-12/2009
ESL Shipping 0.1 0.8 -0.7 3.1
Leipurin 0.1 0.2 -0.1 0.5
Telko 0.1 0.0 0.1 2.5
Kaukomarkkinat 0.0 0.1 -0.1 0.6
Other operations 0.1 0.4 -0.3 0.7
Total 0.4 1.5 -1.1 7.4
FINANCING
The Group's financing position improved clearly from the comparison period. The
Group's cash and cash equivalents amounted to EUR 5.9 million (9.5). There was a
total of EUR 69.1 million (87.1) in interest-bearing liabilities on the
consolidated balance sheet. Interest-free liabilities totaled EUR 52.7 million
(65.6).
Aspo Group's net gearing was 92.1% (136.0), the return on equity was 3.2% (12.1)
and the equity ratio was 36.2% (27.8).
The Group's cash flow from operations was negative in the review period,
totaling EUR -4.3 million (6.8). The cash flow was weakened by the low result
and an increase in inventories and sales receivables. In particular the increase
in Telko's sales raised the amount of sales receivables. In addition, the
company prepared to serve customers during possible labor market disruptions by
increasing inventories. At the end of the period the change in working capital
stood at EUR -6.7 million (2.9).
Cash flow from investments was EUR -0.1 million so the Group's free cash flow in
the review period was EUR -4.4 million.
The amount of committed revolving credit facilities signed between Aspo and its
main financing banks stood at EUR 50 million at the end of the period. The total
amount of limits was decreased by EUR 30 million during the review period. The
amount of limits was decreased voluntarily as Aspo's debt structure improved
considerably. At the end of the period the committed revolving credit facilities
remained fully unused. At the end of the period a financing program that applies
to part of Telko's sales receivables was introduced with the aim to free up a
maximum of EUR 5 million in working capital.
RISKS AND RISK MANAGEMENT
In late 2009 a stabilizing economy and gradual recovery of prices decreased the
Group's risks in the business operations.
The Group is growing in developing market areas where growth risks are also
affected by investments, interest rate levels, exchange rates and customers'
liquidity, as well as changes in legislation and import regulations. In terms of
Aspo's market areas, the general economic uncertainty also affects industrial
demand in Western countries.
The Group has avoided considerable exchange rate losses due to active hedging of
currency positions and currency flow. The credit loss risk is higher than usual
and is dependent on customer companies' financial situations. The risks caused
by the economic recession were monitored particularly actively at Aspo during
the first quarter. The business areas continued carrying out risk analyses
controlled by external assessors and by making continuity plans. Risk management
is part of Aspo's internal supervision 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 defining sufficient measures,
implementation and for monitoring that the measures are implements as part of
day to day operational control. Risk management is coordinated by Aspo's CFO,
who reports to the Group CEO.
In operational risks, the main risks in terms of likelihood and effect are
connected to the permanence of customer relationships, equipment sufficiency,
maintaining the balance level and key personnel, as well as application of
internal guidelines. Risks connected to goodwill are monitored with segment
specific impairment tests that are carried out at least once a year.
Aspo Group's financing and financing risk management is centralized in the
parent company in accordance with the financing policy approved by the Board of
Directors.
PERSONNEL
Personnel by segment
1-3/2010 1-3/2009 Change 1-12/2009
ESL Shipping 186 221 -35 194
Leipurin 224 184 40 218
Telko 191 232 -41 193
Kaukomarkkinat 87 96 -9 90
Other operations 14 36 -22 22
Total 702 769 -67 717
Aspo Group's number of personnel stood at 702 (769) at the end of the period.
The biggest changes in the total number of personnel compared to the first
quarter in 2009 were caused by the reduction in personnel caused by ESL
Shipping's vessel sales, the increase in personnel in Latvia caused by
Leipurin's acquisition and the personnel for new units in Russia and Ukraine
Telko's personnel has been reduced in Finland and in Scandinavia.
Kaukomarkkinat's personnel decreased as a result of divestments.
Rewarding
Aspo Group has a profit bonus system. Part of the Group's profit is paid as a
profit bonus to the personnel fund. The aim is that the personnel fund uses the
majority of the profit bonuses to purchase Aspo Plc shares. The long-term goal
is that the personnel will become a considerable shareholder group in the
company. All persons working at Aspo Group's Finnish subsidiaries are members of
the personnel fund. Aspo's business areas pay part of their earnings as bonuses
to the personnel. The calculation principles for the bonuses are decided on by
business area.
In March 2009, Aspo's Board of Directors decided on a new share-ownership plan
where the potential gain is based on the cumulative earnings per share during
2009-2011. The new share-ownership plan encompasses about 40 people in Aspo's
management and key personnel.
The Board of Directors also decided to continue the shareholding program of
2006 by granting all the employees involved the possibility to get company
shares in the spring of 2010. In March, the company granted the 25 Aspo Group
executives involved in the program a total of 43,130 company-held shares and, in
accordance with the program terms, cash to cover the taxes, which at most
corresponds with the value of the shares.
SHARE CAPITAL AND SHARES
Aspo Plc's registered share capital on March 31, 2010 was EUR 17,691,729.57 and
the total number of shares was 26,406,063 of which the company held 576,870
shares, i.e. 2.18% of the share capital. Aspo Plc has one share series. Each
share entitles one vote at the shareholder's meeting. Aspo's share is quoted on
NASDAQ OMX Helsinki Ltd's medium-sized companies group under industrial products
and services.
On March 25, 2010, Aspo Plc's granted 43,130 company-held shares to 25 members
of Aspo Group's management team as part of a share-ownership program directed at
key personnel.
From January to March 2010 a total of 1,380,897 Aspo Plc shares with a market
value of EUR 9.82 million were traded on NASDAQ OMX Helsinki, in other words,
5.2% of the shares changed hands. During the period, the stock reached a high of
EUR 8.00 and a low of EUR 5.91. The average price was EUR 7.11 and the closing
price at the end of the period was EUR 8.00. At the end of the period, the
market capitalization excluding company-held shares was EUR 206.6 million.
At the end of the period, the number of Aspo Plc shareholders was 5,382. A total
of 743,404 shares, or 2.8% of the total share capital, were nominee registered
or held by non-domestic shareholders.
CONVERTIBLE CAPITAL LOAN
Aspo Plc has EUR 15,000,000 in a convertible capital loan issued in 2009. The
loan period is June 30, 2009 - June 30, 2014. The loan will be repaid in one
installment on June 30, 2014, assuming that the repayment conditions outlined in
Chapter 5 of the Finnish Companies Act and the loan terms are met. The loan has
a fixed interest rate of 7%.
The loan units can be converted into Aspo shares. Each EUR 50,000 subscription
of the loan entitles the loan unit holder to convert the loan unit to 7,690 Aspo
Plc shares. The conversion rate is EUR 6.50. The loan can be converted annually
between January 2 and November 11. The conversion period ends on June 15, 2014.
DECISIONS AT THE ANNUAL SHAREHOLDER'S MEETING
Dividend
At the Aspo Plc Annual Shareholder's Meeting on April 7, 2010, the shareholders
adopted the Board of Directors' proposal for a dividend of EUR 0.42 per share
and the payment date of April 19, 2010.
Board of Directors and auditors
Aspo Plc's Annual Shareholder's Meeting re-elected Matti Arteva, Esa Karppinen,
Roberto Lencioni, Gustav Nyberg, Kristina Pentti-von Walzel and Risto Salo to
the Board of Directors for a one-year term. In the meeting arranged after the
Shareholders' Meeting, the Board elected Gustav Nyberg as its Chairman and Matti
Arteva as its Deputy Chairman. In the meeting, the Board also decided to form an
Audit Committee and elected Roberto Lencioni as the Chairman of the Committee
and Kristina Pentti-von Walzel and Risto Salo as Committee members.
The authorized public accounting firm PricewaterhouseCoopers Oy continues as the
company's auditor. Mr. Jan Holmberg, APA, acts as the auditor in charge.
Board authorizations
The Annual Shareholder's Meeting approved the Board's proposals on the
acquisitions of company-held shares and authorized the Board to decide on a
share issue.
The authorizations are valid until the Annual Shareholder's Meeting of 2011, but
no more than 18 months from the approval at the Shareholder's Meeting. The Board
of Directors has not utilized the authorizations granted for 2010 by April
28, 2010.
Amendment of the Articles of Association
The Annual Shareholder's Meeting decided to amend the Articles of Association in
accordance with the Board's proposal.
EVENTS AFTER THE REPORTING PERIOD
In accordance with the decision of the Annual Shareholder's Meeting a total of
EUR 10,848,261.06 has been paid as dividends to the shareholders. The dividend
payment date was April 19, 2010.
OUTLOOK FOR 2010
Aspo Group's current structure creates a good basis for growth in operations.
Aspo will increase its net sales and the Group has the preconditions to improve
its earnings per share. Aspo's aim is to improve its profitability. The costs of
Group administration are estimated to be considerably lower than in 2009. A
possible change to the tonnage tax legislation would considerably improve the
Group's profit after tax.
Operational risks 2010
The general economic situation is affecting industrial demand in the Baltic Sea
region. The important basic industry segments have reported that they will
increase production from 2009. It is more difficult to forecast the changes in
demand on developing markets. In Russia in particular the overall market is
expected to continue developing positively, and the share of Russia and other
CIS countries in Aspo Group's operations is expected to remain intact or
increase. The effect from the uncertainty on the financial markets and the
recession has decreased but is still reflected in the exchange rates in our
neighboring areas (Russia, Ukraine, the Baltic region and Poland). A turnaround
in the economy can slow down and have an effect on the liquidity and
profitability of customer companies.
ESL Shipping
The shipping company's own vessel capacity has decreased in recent years. The
shipyard expects the vessel ordered from India to be completed by summer and to
be in use on the Baltic Sea during the fall. Due to a more demanding winter
season than in previous years and to ensure docking in early summer, ESL
Shipping has time chartered three vessels, of which Ms Beatrix' and Ms
Nassauborg's time charter has been extended to August 2011. The aim is to ensure
capacity on the growing Baltic Sea markets. A considerable share of the
transportation capacity of 2010 has been covered with long-term agreements. The
volume in the steel industry is estimated to exceed 2009 levels and the cargo
volumes in the energy sector are expected to increase from previous years. Coal
transport volumes were low during the first quarter so re-stocking is expected
to increase the transport volume, in particular in the second quarter. The
Finnish steel industry has announced renovations of blast furnaces that are
likely to be carried out in the second and third quarters. ESL Shipping has
prepared to increase its vessel capacity considerably and is renewing its fleet
in accordance with its strategy.
The amendment to the tonnage tax legislation that is awaiting approval from the
EU commission would have a considerable effect on ESL Shipping's post-tax result
if applied. The new tonnage tax legislation is expected to become retroactively
valid from January 1, 2010.
Leipurin
Organic growth is expected to continue. During 2010, Leipurin will continue
establishing itself in new major cities in Russia, will establish a test bakery
in Ukraine and investigate the possibility of starting operations in Belarus and
Kazakhstan. The wherewithal for growth is created by a new customs agreement
between Russia, Kazakhstan and Belarus. The new offices create a good foundation
for several years of growth in bakery raw material sales. Bakery machine sales
are expected to decrease in Finland and the Baltic countries but to increase in
Russia. Establishing other food industry operations in Russia and the Baltic
region is expected to have a positive effect on Leipurin's result in the second
half of 2010. The order book for project deliveries has decreased from the 2009
level.
Telko
The savings effect from the reorganization completed in 2009 is estimated to be
approximately EUR 2 million in 2010 fixed costs. Telko will continue to make its
operations more efficient.
In early 2010 a new subsidiary will be founded in China. Operations will
initially be based on service to Northern European plastic industry customers
operating in China. Telko will continue expanding in Russia and the CIS
countries in accordance with its strategy. New offices will be opened in major
cities in Russia. The new customs treaty between Russia, Belarus and Kazakhstan
from July 1, 2010 creates good opportunities to expand into Belarus and
Kazakhstan with a subsidiary. The decision to expand into new countries will be
made during 2010. Telko will focus on further developing logistics and finding
strong new principals.
Kaukomarkkinat
Kaukomarkkinat's main target is to grow at least as much as general market
growth in the Finnish air-source heat pump markets. The price level and
characteristics of the new models improve competitiveness in 2010. In addition,
the aim is to expand the product portfolio - the company will launch its own air
and water source heat pump during 2010.
Project sales in the process industry are expected to improve to 2008 levels.
The company's order book in China has improved compared to 2009. Growth is
sought in security and digital products.
Helsinki, April 28, 2010
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
1-03/10 1-03/09 1-12/09
MEUR % MEUR % MEUR %
Net sales 83.4 100.0 78.4 100.0 329.4 100.0
Other operating income 0.6 0.7 0.7 0.9 10.5 3.2
Depreciation and write-downs -2.1 -2.5 -2.3 -2.9 -8.9 -2.7
Operating profit 2.1 2.5 3.8 4.8 15.3 4.6
Financial income and expenses -1.1 -1.3 -1.3 -1.7 -3.6 -1.1
Profit before taxes 1.0 1.2 2.5 3.2 11.7 3.6
Profit for the period 0.5 1.9 8.6
Other comprehensive income
Translation differences 0.9 -0.9 -0.1
Cash flow hedges 0.9 0.4
Net result recognized directly to equity 0.2
Income tax on other comprehensive income -0.2 -0.1
Other comprehensive income for the year, net
of taxes 0.9 -0.2 0.4
Total comprehensive income 1.4 1.7 9.0
Profit attributable to shareholders 0.5 1.9 8.5
Minority interest 0.0 0.0 0.1
Other operating income
Total comprehensive income attributable to
shareholders 1.4 1.7 8.9
Minority interest 0.0 0.0 0.1
ASPO GROUP BALANCE SHEET
03/10 03/09 Change 12/09
MEUR MEUR % MEUR
Assets
Non-current assets
Intangible assets 16.1 16.6 -3.0 16.6
Goodwill 40.3 40.5 -0.5 40.2
Tangible assets 48.5 69.6 -30.5 50.1
Available-for-sale assets 0.2 0.2 0.0 0.2
Long-term receivables 0.6 1.4 -57.1 0.6
Shares in associated companies 1.6 0.9 77.8 1.6
Total non-current assets 107.3 129.2 -17.0 109.3
Current assets
Inventories 30.4 30.0 1.3 29.3
Sales and other receivables 46.9 41.0 14.4 44.7
Cash and bank deposits 5.9 9.5 -37.9 11.5
Total current assets 83.2 80.5 3.4 85.5
Total assets 190.5 209.7 -9.2 194.8
Shareholders' equity and liabilities
Shareholders' equity
Share capital 17.7 17.7 0.0 17.7
Other shareholders' equity 51.0 39.3 29.5 49.2
Shareholders' equity attributable to equity
holders of the parent company 68.7 57.0 20.4 66.9
Minority interest 0.0 0.0 0.0 0.0
Long-term liabilities 56.4 70.4 -19.9 57.1
Short-term liabilities 65.4 82.3 -20.5 70.8
Total shareholders' equity 190.5 209.7 -9.2 194.8
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A = Share capital
B = Premium fund
C = Fair value fund
D = Other funds
E = Repurchased shares
F = Translation difference
G = Retained earnings
H = Total
I = Minority interest
J = Total shareholders' equity
MEUR A B C D E F G H I J
Balance at 31.12.2009 17.7 4.3 0.0 2.8 -3.7 -1.6 47.5 67.0 -0.1 66.9
Comprehensive income:
Profit for the period 0.5 0.0
Translation difference 0.9
Total comprehensive income 0.9 0.5 1.4
Transactions with owners:
Share based payment 0.2 0.1 0.0
Total transactions with owners 0.2 0.1 0.0 0.3
Balance at 31.3.2010 17.7 4.3 0.0 3.0 -3.6 -0.7 48.0 68.7 0.0 68.7
Balance at 31.12.2008 17.7 4.3 -0.3 0.5 -3.7 -1.5 49.0 66.0 0.0 66.0
Comprehensive income:
Profit for the period 1.9
Translation difference -0.9
Cash flow hedge 0.7
Total comprehensive income 0.7 -0.9 1.9 1.7
Transactions with owners:
Dividend payment -10.8
Share based payment 0.1
Total transactions with owners -10.7 -10.7
Balance at 31.3.2009 17.7 4.3 0.4 0.5 -3.7 -2.4 40.2 57.0 0.0 57.0
ASPO GROUP CASH FLOW STATEMENT
1-3/10 1-3/09 1-12/09
MEUR MEUR MEUR
OPERATIONAL CASH FLOW
Operating profit 2.1 3.8 15.3
Adjustments to operating profit 2.5 2.3 1.7
Change in working capital -6.7 2.9 6.8
Interest paid -1.2 -1.3 -5.5
Interest received 0.4 0.1 0.2
Taxes paid -1.4 -1.0 -5.5
Total operational cash flow -4.3 6.8 13.0
INVESTMENTS
Investments in tangible and intangible assets -0.2 -1.5 -3.8
Gains on the sale of tangible
and intangible assets 0.1 13.8
Gains on the sale of business operations 11.1
Purchases of subsidiary shares -1.2
Sale of the subsidiary shares 1.0
Total cash flow from investments -0.1 -1.5 20.9
FINANCING
Change in short-term borrowings -0.5 -27.9 -32.7
Change in long-term borrowings -0.7 19.5 8.5
Dividends paid -10.8
Total financing -1.2 -8.4 -35.0
Increase / Decrease in liquid funds -5.6 -3.1 -1.1
Liquid funds in beginning of year 11.5 12.6 12.6
Liquid funds at period end
5.9 9.5 11.5
1-3/2010 1-3/2009 1-12/2009
KEY FIGURES AND RATIOS
Earnings per share, EUR 0.02 0.07 0.33
EPS adjusted for dilution, EUR 0.03 0.07 0.33
Comparable earnings per share, EUR 0.16
Equity per share, EUR 2.66 2.21 2.59
Equity ratio, % 36.2 27.8 34.6
Gearing, % 92.1 136.0 87.9
ACCOUNTING PRINCIPLES AND FINANCIAL REPORTING
Aspo Plc's interim report has been compiled in accordance with the principles of
IAS 34 Interim Financial Reporting. The same accounting principles have been
adopted in the interim report as in the Financial Statements on December
31, 2009. The calculation formulas for key indicators are explained on page 82
of the 2009 financial statements. The information in this report is unaudited.
Helsinki, April 28, 2010
ASPO Plc
Aki Ojanen Arto Meitsalo
CEO CFO
For more information:
Aki Ojanen, +358 9 521 4010, +358 400 106 592
aki.ojanen@aspo.com <mailto:aki.ojanen@aspo.com>
PRESS AND ANALYST CONFERENCE
A press and analyst conference will be arranged today, Wednesday April 28, 2010
at 14.30 at the Paavo Nurmi cabinet at Hotel Kämp, Pohjoisesplanadi 29, 00100
Helsinki.
FINANCIAL REPORTING 2010
Aspo Plc's next interim reports will be published as follows:
1-6/2010 on Tuesday August 24, 2010
1-9/2010 on Tuesday October 26, 2010
DISTRIBUTION:
NASDAQ OMX Helsinki
Key media
www.aspo.com <http://www.aspo.com/>
[HUG#1409019]
