ASPO GROUP INTERIM REPORT JANUARY 1 TO JUNE 30, 2009
(Thomson Reuters ONE) - ASPO Plc STOCK EXCHANGE BULLETIN August 24, 2009 at 13.00January-June, continuing operations- Net sales for Aspo Group's continuing operations in January-Juneamounted to EUR 159.3 million (EUR 145.4 million)- Operating profit was EUR 5.7 million (EUR 6.9 million)- Profit before taxes amounted to EUR 3.4 million (EUR 5.3 million)- Earnings per share for continuing operations stood at EUR 0.10 (EUR0.15)- The Group's financing situation has continued to be good.- During the review period, a 2004 convertible capital loan of EUR14.2 million was repaid and a new five year convertible capitalloan of EUR 15.0 million was issued.- Continuing operations include a EUR 2.9 million sales gain from m/sKontula, a EUR -0.5 million loss from the divestment of Germansubsidiary Metex Deutschland, and non-recurring costs of EUR 1.8million from Telko business operations.- Aspo specifies its outlook for 2009. It is challenging to reach thesame operating profit level from continuing operations as last year.Earnings per share is expected to be below last year's record level.KEY FIGURES 1-6/2009 1-6/2008 1-12/2008Continuing operationsNet sales, MEUR 159.3 145.4 358.2Operating profit, MEUR 5.7* 6.9 14.1Share of net sales, % 3.6 4.7 3.9Profit before taxes, MEUR 3.4 5.3 9.5Share of net sales, % 2.1 3.6 2.7Personnel at the end of period 761 800 821Earnings per share, EUR, continuingoperations 0.10 0.15 0.27Earnings per share, EUR, ciscontinuedoperations 0.01 0.33Earnings per share, EUR, total 0.10 0.16 0.60EPS adjusted for dilution, EUR,continuing operations 0.09 0.15 0.26EPS adjusted for dilution, EUR,discontinued operations 0.01 0.30EPS adjusted for dilution, EUR, total 0.09 0.16 0.56Comparable earnings per share, EUR,continuing operations 0.02 0.27Comparable earnings per share, EUR,discontinued operations -0.03The Group as a wholeEquity per share, EUR 2.32 2.12 2.56Equity ratio, % 29.4 20.2 30.6Gearing, % 142.2 199.3 124.9* includes a EUR 2.9 million sales gain and a EUR -0.5 million salesloss.AKI OJANEN, ASPO'S CEO:"The market situation in Aspo's operating countries continued to beunexceptionally weak and the national economies in the operatingareas weakened during the review period. It is still challenging toforesee market development. A prolonged and possibly worseningeconomic recession may also have a negative effect on Aspo Group'sdevelopment and operations.The operating result in the first half of the year can be seen assatisfactory for Aspo in the current market situation.In accordance with its strategy, Aspo, as a conglomerate, hasdecentralized its risks by focusing on several small niche areas:Leipurin and ESL Shipping generated good results. Telko's andKaukomarkkinat's result was weak and during the review period, theresult was depressed by non-recurring costs from reorganizing theoperations and a sales loss from the divestment of the shares in theGerman subsidiary Metex Deutschland; the combined effect was EUR 2.3million. ESL Shipping sold its oldest vessel, m/s Kontula, from whichthe company booked a EUR 2.9 million sales gain.Aspo strategy is to increase its operations in Russia and other CIScountries. Despite the difficult economic situation, Aspo wassuccessful in this strategy and raised the net sales in the marketarea by 10% during the review period. Volume grew even more as theRussian currency has devaluated by over 30%. Our operations in thegrowth markets were profitable.The company has launched a cost-cutting program since the acquisitionin the spring of 2008. The fixed costs of the Group's otheroperations are expected to decrease by EUR 2 million on an annuallevel. The move of Finnish operations into one office and theoutsourcing and efficiency measures in logistics will start to havefull effect from the fourth quarter onwards. The Group's new ERPsystem will first be launched in Telko at the beginning of 2010.ASPO AS A COMPANYAspo is a conglomerate that owns and develops businesses in theBaltic Sea region focusing on demanding B-to-B customers. The aim ofour strong corporate brands - ESL Shipping, Leipurin, Telko andKaukomarkkinat - is to be the market leaders in their sectors. Theyare responsible for their own operations, customer relationships andthe development of these. Together they generate Aspo's goodwill.Aspo's Group structure and business operations are developedpersistently without any predefined schedules.FINANCIAL REPORTINGAs of January 1, 2009, the Group has applied the following new andrevised standards: IFRS 8 Operating Segments and IAS 1 Presentationof Financial Statements. IFRS 8 has an effect on the segmentinformation and IAS 1 has an effect on the presentation of the incomestatement. The comparison figures have been restated according to thenew standards. The changes have no effect on the Group's result orfinancial position.As of January 1, 2009, Aspo's reporting segments are as follows: ESLShipping, Leipurin, Telko and Kaukomarkkinat. The operations of thesegments are described in the respective segment sections.Kaukomarkkinat, previously presented in other operations togetherwith Group administration, is now presented as a separate segment.Other operations include Group administration and other operationsnot belonging to the business units.The segment structure corresponds to the Group structure and internalreporting. Management reporting is based on IFRS standards.As of January 1, 2009, the company reports net sales from thefollowing geographical areas: Finland, Scandinavia, Baltic countries,Russia and other CIS countries, and other countries.Leipurin and Kaukomarkkinat are included in Aspo Group's figures fromthe beginning of May 2008. Telko's comparison data includes, from thebeginning of May 2008, Kauko-Telko's industrial raw materialoperations that were acquired in the spring of 2008.OPERATIONAL PERFORMANCEGeneral uncertainty has continued in the markets. There has not beenan increase in the prices of sold raw materials nor volume growth asof yet. The demand for raw materials in the food industry hascontinued to be stable.The national economies in the Baltic countries are expected to weakenin 2009. The general uncertainty in the financial markets hascontinued. It is difficult to predict future development or apossible turn for the better in the real economy. The steep and rapiddecrease in the external value of currencies outside the euro areahas stopped during the first quarter.Uncertainty continues to be strong concerning the direction ofeconomic development in the Baltic Sea and CIS markets that areimportant for Aspo Group's operations.The Group's financial position has remained at the same level as inthe 1st quarter of 2009. Due to a decrease in the Group'sinterest-bearing debt and general interest rate levels, the totalfinancing costs are decreasing, even though the financing marginshave increased.ESL ShippingESL Shipping is the leading dry bulk sea transport company operatingin the Baltic Sea area. At the end of the review period, thecompany's fleet consisted of 15 company-owned vessels and onepartially owned vessel. 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 Change 2009 2008 2008Net Sales, MEUR 15.1 20.4 -5.3 32.4 41.4 84.1Operating Profit, MEUR 5.2* 3.8 1.4 9.3* 7.0 15.6Personnel 215 224 -9 215 224 240* includes a EUR 2.9 million sales gainThe market for dry bulk cargo marine transport in the Baltic Seastabilized but still remained challenging. On international cargomarkets, the drop in dry bulk cargo prices has stopped and the priceshave made a partial upturn. In general, the vessel stock has beenadjusted, and thus overall capacity has decreased. The steel andconstruction industries in Scandinavia in particular have continuedto decrease their production capacity, which has affected the amountof shipping. An increase in demand is expected towards the end of theyear as the steel industry has started to reintroduce productioncapacity that has previously been shut down.The shipping volume in the energy industry remained at normal levelsfor the period.The cargo volume carried by ESL Shipping in the January to Juneamounted to 5.2 million tons (6.8). The share of the steel industrywas 2.4 million tons (4.3) and the energy industry represented 2.6million tons (1.9).Fleet operations were good considering the market situation. Netsales amounted to EUR 32.4 million (41.4). Operating profit excludingthe sales gain was EUR 6.4 million (7.0), which is good consideringthe market situation.During the review period, the company's oldest vessel, 29 year oldm/s Kontula, was sold. The divestment was timed to precede necessarymaintenance investments and was a partial solution in adjustingcapacity to the market. During the review period, six units havebeen laid up time to time to reduce capacity and five units have beendocked according to plan. The company has agreed on a period charterfor a 20,000 dwt vessel for one year starting from August 2009. Thevessel is suited for winter traffic and fits the company's operationswell. The capacity increase ensures that long term customercommitments can be carried out also during the fall and winterseasons.A 20,000 dwt vessel is being constructed in India. The constructionschedule has been delayed, and the vessel is expected to be ready fortraffic during the spring of 2010. A leasing agreement has beensigned for the vessel.LeipurinLeipurin serves the baking and food industry by supplyingingredients, production machinery and production lines, as well asrelated expertise. Leipurin operates in Finland, Russia, Poland,Estonia, Latvia, Lithuania and Ukraine. In Russia, Leipurin hasoperations in several large cities in addition to St. Petersburg andMoscow. Procurement operations are international. 4-6/ 4-6/ 1-6/ 5-6/ 5-12/ 2009 2008 Change 2009 2008 2008Net Sales, MEUR 26.7 17.0 9.7 48.4 17.0 69.3Operating Profit, MEUR 1.2 0.8 0.4 1.5 0.8 3.1Personnel 193 167 26 193 167 168The raw material prices for the food industry continued decreasingfurther during the first half of the year. The order book for machinedeliveries has increased and is at 2008 levels.Earnings development in baking industry sales continued to be good inall market areas. New agencies in Russia and Ukraine have beenopened. In bakery machine deliveries, normal delivery volumes for theperiod were achieved.TelkoTelko is the leading expert and supplier of industrial chemicals andplastic raw materials in the Baltic Sea region. It operates inFinland, the Baltic countries, Scandinavia, Poland, Ukraine, Russia,and Belarus. Procurement operations are international. 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 Change 2009 2008 2008Net Sales, MEUR 31.0 49.0 -18.0 59.8 80.4 172.7Operating Profit, MEUR -1.8 1.3 -3.1 -1.7 2.1 1.0Personnel 225 222 3 225 222 230The steep drop in the prices and demand of petrochemical productsthat began in the fall, turned around in the second quarter. Pricelevels and demand have still remained weak.Customers continued to decrease their volumes and adjusted orders totheir own volume of orders and production. Part of the industry beganproduction standstills already in May, which lowered volumes inFinland and Sweden in particular. The shortage of capacity inoperations has weakened the result. Telko adjusted its organizationto current demand and cut its personnel by a total of 12 people inFinland and Sweden. The result in the second quarter included EUR 1.8million in non-recurring costs.In order to ensure a new direction for operations, Telko's managementwas renewed and Kalle Kettunen, M.Sc., MBA, started working as thenew CEO of Telko on August 1, 2009. The costs arising from the changewere booked in the review period.KaukomarkkinatKaukomarkkinat specializes in energy efficiency technology, theefficiency of the process industry, and security and audio-visualapplications. Company operations are based on the products of thebest companies in the industry and the willingness of the company'sown experts to improve the operations or efficiency of its customers.Kaukomarkkinat operates in Finland, Poland, Russia, China, andVietnam. 4-6/ 4-6/ 1-6/ 5-6/ 5-12/ 2009 2008 Change 2009 2008 2008Net Sales, MEUR 7.9 6.4 1.5 17.7 6.4 30.8Operating Profit, MEUR -0.9* 0.1 -1.0 0.1* 0.1 2.1Personnel 97 95 2 97 95 100* includes a EUR -0.5 million sales lossDuring the review period, a delay in projects in the industrialmachinery unit in particular caused Kaukomarkkinat's weak operatingresult, which was visible mainly in Finland and China. The Moscowagency was shut down and the agency in St. Petersburg was downsized.The German subsidiary Metex Deutschland was divested, which caused aEUR -0.5 million sales loss for the period. The operations of Metexdid not fit Kaukomarkkinat strategically because the operationsmainly had an engineering industry nature.The operating profit adjusted by the non-recurring sales loss was EUR0.6 million (0.1). In products that improve energy efficiency, normalseasonal fluctuation was seen and sales were in line withexpectations.Other operationsOther operations include Aspo Group's administration and otheroperations not belonging to the business units. The Group'sadministration costs have been higher than usual since the summer of2008 due to the acquisition. The cost-cutting program for fixed costswill have full effect from the fourth quarter onwards. 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 Change 2009 2008 2008Net Sales, MEUR 0.2 0.1 0.1 1.0 0.2 1.3Operating Profit, MEUR -1.8 -2.0 0.2 -3.5 -3.1 -7.7Personnel 31 92 -61 31 92 83NET SALES AND PROFIT, CONTINUING OPERATIONSNet sales for Aspo Group's continuing operations in January-June 2009amounted to EUR 159.3 million (EUR 145.4 million). ESL Shippings' netsales decreased as a result of a drop in cargo volumes and selling ofa vessel. The net sales of Leipurin and Kaukomarkkinat are includedfor the entire period. However in the comparison figures, they areonly included for 5-6/2008. Telko's net sales decreased compared tolast year as a result of a drop in volumes and prices as well as theunfavorable development of currency exchange rates.Aspo Group's net sales for continuing operations in April-Juneamounted to EUR 80.9 million compared with EUR 92.9 million in thecorresponding period last year.Net Sales by Segment,MEUR 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 Change 2009 2008 2008ESL Shipping 15.1 20.4 -5.3 32.4 41.4 84.1Leipurin 26.7 17.0 9.7 48.4 17.0 69.3Telko 31.0 49.0 -18.0 59.8 80.4 172.7Kaukomarkkinat 7.9 6.4 1.5 17.7 6.4 30.8Other operations 0.2 0.1 0.1 1.0 0.2 1.3Continuing operationstotal 80.9 92.9 -12.0 159.3 145.4 358.2Discontinued operations 19.9 -19.9 32.5 45.1Total 80.9 112.8 -31.9 159.3 177.9 403.3Inter-segment net sales is not considerable.Net Sales by Market Area, MEUR 4-6/09 4-6/08 Change 1-6/09 1-6/08 1-12/08Finland 38.2 44.7 -6.5 75.3 67.6 166.0Nordic countries 6.4 12.6 -6.2 13.4 21.2 47.5Baltic countries 10.5 8.0 2.5 18.0 11.5 32.8Russia + other CIScountries 12.6 15.1 -2.5 24.2 25.6 61.1Other countries 13.2 12.5 0.7 28.4 19.5 50.8Continuing operationstotal 80.9 92.9 -12.0 159.3 145.4 358.2Discontinued operations 19.9 -19.9 32.5 45.1Total 80.9 112.8 -31.9 159.3 177.9 403.3The importance of Russia and other CIS countries has increased. Dueto the devaluation of currencies other than the euro, deliveredvolumes have in the first half of the year been relatively higherthan last year. The importance of the CIS countries becomesemphasized when all of ESL Shipping's raw material exports fromRussia, EUR 19.4 million (15.1), are included in the net sales forthe Russian market area.MEUR 4-6/09 4-6/08 Change 1-6/09 1-6/08 1-12/08Russia + other CIScountries 25.3 20.8 4.5 43.6 39.4 90.6January-June performance, continuing operationsAspo Group's operating profit in January-June was EUR 5.7 million,i.e., 3.6% of net sales (EUR 6.9 million). Planned depreciationtotaled EUR 4.5 million (EUR 4.9 million). The Group's net financialcosts amounted to EUR 2.3 million (EUR 1.6 million). The profitbefore taxes in January-June was EUR 3.4 million (EUR 5.3 million),and the net profit for the period totaled EUR 2.6 million (EUR 3.7million).April-June performance, continuing operationsOperating profit for Aspo Group's continuing operations in April-Juneamounted to EUR 1.9 million (EUR 4.0 million). ESL Shipping'soperating profit was EUR 5.2 million (3.8), including a EUR 2.9million sales gain. Leipurin's operating profit amounted to EUR 1.2million (0.8). Telko's operating profit was EUR -1.8 million (1.3),including a EUR 1.8 million non-recurring cost. Kaukomarkkinatgenerated a EUR -0.9 million loss (0.1), which included a EUR -0.5million sales loss. Other operations include Aspo Group'sadministration and other operations not belonging to the businessunits. The operating profit of Other operations was EUR -1.8 million(-2.0).Operating Profit by Segment,MEUR 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 Change 2009 2008 2008ESL Shipping 5.2 3.8 1.4 9.3 7.0 15.6Leipurin 1.2 0.8 0.4 1.5 0.8 3.1Telko -1.8 1.3 -3.1 -1.7 2.1 1.0Kaukomarkkinat -0.9 0.1 -1.0 0.1 0.1 2.1Other operations -1.8 -2.0 0.2 -3.5 -3.1 -7.7Continuing operationstotal 1.9 4.0 -2.1 5.7 6.9 14.1Discontinued operations 1.8 -1.8 1.5 9.6Total 1.9 5.8 -3.9 5.7 8.4 23.7Earnings per shareEarnings per share for continuing operations stood at EUR 0.10 (EUR0.15). The Group's earnings per share was EUR 0.10 (0.16) and thediluted earnings per share was EUR 0.09 (0.16). Equity per share wasEUR 2.32 (2.12).INVESTMENTSInvestments for the Group's continuing operations in January-June wasEUR 3.9 million (3.7), of which the majority was generated from ESLShipping's vessel docking.Investments by Segment, MEUR 4-6/ 4-6/ 1-6/ 1-6/ 1-12/ 2009 2008 Change 2009 2008 2008ESL Shipping 1.5 0.3 1.2 2.3 2.5 18.8Leipurin 0.1 0.0 0.1 0.3 0.0 0.1Telko 0.6 0.1 0.5 0.6 0.1 0.4Kaukomarkkinat 0.2 0.0 0.2 0.3 0.0 0.1Other operations 0.0 0.1 -0.1 0.4 1.1 1.1Continuing operations total 2.4 0.5 1.9 3.9 3.7 20.5Discontinued operations 0.2 -0.2 0.4 0.6Total 2.4 0.7 1.7 3.9 4.1 21.1FINANCINGThe Group's financing position remained good in the review period.The figures for the comparison period are affected by the purchase ofKauko-Telko Oy's stock in May 2008. Due to paid dividends of EUR 10.8million, interest-bearing debt increased slightly compared to theprevious review period. Liquid assets totaled EUR 6.9 million (24.3)at the end of the period. At the end of the period, interest-bearingdebt totaled EUR 91.9 million (133.6) and non-interest bearing debtamounted to EUR 53.1 million (88.2).Aspo Group's gearing was 142.2% (199.3) and the equity ratio was29.4% (20.2). The Group's cash flow from operations remained strong.In January-June, net cash flow from operations amounted to EUR 6.0million (7.1).Aspo Plc and its key financing banks have signed binding financiallimits for a total of EUR 90 million. Credit withdrawn within theframework of these financial limits amounted to EUR 12.0 million atthe end of the review period. The company has a EUR 50 millioncommercial paper program of which EUR 5 million was in use at the endof the period.During the review period, the company strengthened its financingposition by issuing a EUR 15 million convertible capital loan. Thearrangement helped prolong the maturity distribution ofinterest-bearing debt.CONVERTIBLE CAPITAL LOANIn June, Aspo plc repaid its convertible capital loan from 2004 andissued a new convertible capital loan for EUR 15 million. The Boardof Directors decided to offer a convertible capital loan forsubscription by a limited group of selected investors (PrivatePlacement) based on an authorization given by the ExtraordinaryShareholders' Meeting on June 8, 2009. Members of the Aspo Plc Boardof Directors and the company's key personnel have about 7.3 per centof the approved loan units, and Aspo Plc shareholders have about 40.0per cent of the approved loan units. The loan period is June 30, 2009- June 30, 2014. The loan will be repaid in one installment on June30, 2014, if the repayment conditions outlined in the loan terms aremet. A fixed annual interest rate of 7 percent is paid on the loan. Aspecial right to convert the loan units into a maximum of 2,307,000Company's new shares is incorporated to the 2009 convertible capitalloan and each EUR 50,000 loan unit can be converted to 7,690 newshares. The conversion price for the share is EUR 6.50.PERSONNELThe number of personnel in Aspo Group's continuing operations duringJanuary-June was 761 (800).Personnel by Segment 1-6/2009 1-6/2008 Change 1-12/2008ESL Shipping 215 224 -9 240Leipurin 193 167 26 168Telko 225 222 3 230Kaukomarkkinat 97 95 2 100Other operations 31 92 -61 83Continuing operations total 761 800 -39 821Discontinued operations 381 -381 6Total 761 1181 -420 827SHARES AND SHAREHOLDERSDuring January-June 2009, a total of 1,110,864 Aspo Plc shares weretraded on NASDAQ OMX Helsinki at EUR 5.41 million, or 4.21% of theshares changed owners. The share reached a high of EUR 6.04 and a lowof EUR 3.94 during the period. The average price was EUR 4.79 and theclosing price was EUR 5.50. The market value of the share capital atthe end of the period, less treasury shares, was EUR 141.8 million.Aspo Plc's registered share capital on June 30, 2009, was EUR17,691,729.57 and the total number of shares was 26,406,063. Thecompany's own shareholding was 620,000 shares, accounting for 2.35%of Aspo Plc's share capital and votes. The accounting par value ofthe shares was EUR 0.67.At the end of the period, the number of Aspo Plc shareholders was5,006. A total of 840 062 shares or 3.2% of the total share capitalwere nominee registered or held by non-domestic shareholders.Henrik B. Nyberg announced on January 19, 2009 that his share of AspoPlc's share capital and votes fell below 10%.BOARD AUTHORIZATIONSThe Extraordinary Shareholders' Meeting held on June 8, 2009authorized the Board of Directors to decide on an issue of shares andspecial rights entitling to shares. A maximum of 2,600,000 shares maybe issued on the basis of the authorization. The authorization willbe used for a convertible capital loan to be issued by Aspo Plc,directed to a limited group of investors. The authorization will notsupersede the authorization to decide on a share issue given to theBoard of Directors by the Annual Shareholders' meeting on 31 March2009. If the Board of Directors decides on a directed convertiblecapital loan, the members of the Board of Directors and the companykey personnel will be reserved the right to subscribe for theconvertible capital loan up to a maximum total of 10% of the amountof the convertible capital loan.The Board of Directors exercised the authorization on June 8, 2009,and decided to offer a convertible capital loan for subscription by alimited group of selected investors. The maximum loan amount is EUR15,000,000 and the loan period is five years.DIVIDEND DISTRIBUTIONAt the Aspo Plc Annual Shareholders' Meeting on March 31, 2009, theshareholders adopted the Board of Directors' proposal for a dividendof EUR 0.42 per share. The dividend distribution day was April 14,2009, as decided by the General Meeting.MARKET MAKINGAspo has an agreement with Nordea Bank Finland Plc on market-makingfor its share. According to the agreement, Nordea Bank Finland Plcgives Aspo Plc's shares a buy and sell bid so that the highestpossible difference between a buy and sell bid is 3%, calculated fromthe buy bid. The agreement is valid until further notice, and theperiod of notice for the agreement is one month.EVENTS AFTER THE REVIEW PERIODKaukomarkkinat has divested its component and mechatronics operationsin August. The deal has no significant effect on Kaukomarkkinat'searnings.PROSPECTS FOR 2009The general economic uncertainty in the Baltic Sea region continues.Industrial demand has decreased from 2008, and it is difficult toforesee when demand will recover. Food demand will remain normal.Aspo Group's new structure creates a good base for growth incontinuing operations, both in the eastern and western markets as thegeneral economic situation improves.Aspo specifies its outlook for 2009. It is challenging for Aspo toreach the same operating profit level from continuing operations aslast year. Earnings per share are expected to be below last year'srecord level.Previous outlookIn accordance with the previously published outlook, Aspo has thepreconditions to improve the result of continuing operations in 2009.The company's net sales will continue growing, but earnings per shareare not expected to reach last year's record level.ESL ShippingThe aim of the shipping company is to maintain its position as theleading dry bulk shipping company and transporter on the Baltic Seaby renewing its fleet. The company sold m/s Kontula, which will bereplaced with a chartered vessel for the winter season 2009.Two vessels have been ordered from India. The construction scheduleof the first 20,000 dwt vessel is delayed, and the vessel isestimated to be in traffic during the spring of 2010. A leasingagreement has been signed for the vessel. Negotiations forcompensation for the loss of income caused by the delay in completionof the vessels ordered from India and a compensation for the delayitself are ongoing with the shipyard.The early fall in particular is expected to be challenging in theBaltic Sea freight markets. ESL Shipping is prepared to lay up itsfleet if necessary. Dry cargo markets, however, are estimated tostrengthen in the last quarter in the Baltic Sea.A considerable share of the transportation capacity of 2009 has beencovered with long-term agreements. The Scandinavian steel industryhas estimated that it will increase its capacity during the fall,which would mean that the transport volume would increase for thefall season and operating efficiency would be better than in springand summer.ESL Shipping aims at reaching the 2008 operating profit level.LeipurinOrganic growth is expected to continue in the Leipurin division.Leipurin will continue establishing itself in Russia's newmegalopolis. The new offices create a good basis for several years ofgrowth. In the review period test bakery operations have beenlaunched in Poland, next to existing operations in Finland, Russia,Estonia, and Lithuania. In Russia, besides St. Petersburg, operationsare also being launched in Novosibirsk from where it will serve theentire Siberian market.The order book for the machine unit is at last year's level anddeliveries will be made both in the third and fourth quarter.Leipurin is expected to make a good result in 2009.TelkoTelko will focus on improving its result and profitability without anet sales growth target. The aim is to strengthen the relative marketshare. Due to a drop in volumes and prices caused by the economicrecession the organization has been adjusted to demand. Telko focuseson improving profitability and on producing excellent key customerservice. Net sales growth is targeted once the general economic trendimproves in our market area. In some raw materials, heavy volatilityin prices is expected.KaukomarkkinatThe main target of the operation is to grow at least as much as thegeneral market growth in the Finnish air-source heat pump markets.Project sales are expected to improve from the second quarter level.Audio-visual and giant screen operations are being developed as a newgrowth area, but its earnings effect will not be substantial in 2009.Kaukomarkkinat aims at reaching last year's result level adjusted bythe sales loss from the Metex divestment.Other operationsOther operations include Aspo Group's administration and otheroperations not belonging to the business units. Financing costs areestimated to decrease even though the financing margins have grownsince 2008. The Group's other costs are expected to start decreasingfrom the fourth quarter onwards.Operational risksThe general economic situation is affecting the industrial demand inthe Baltic Sea region. Among Aspo's customer segments, the economicrecession will affect basic industry such as the steel andconstruction industries in particular. It is more difficult toforesee the changes in demand in emerging markets. The overallmarkets in Russia in particular are expected to develop positivelydespite the recession. The recession in the financial markets and theeconomy can further weaken the value of currencies in our neighboringareas (Russia, the Ukraine, the Baltic region, and Poland) and canpossibly weaken customers' solvency. Raw material prices thatdecreased in late 2008 and early 2009 have started to show the firstsigns of recovery.The operational risks are discussed in more detail in the 2008 Reportof the Board of Directors.Helsinki, August 24, 2009ASPO PlcBoard of DirectorsASPO GROUP INCOME STATEMENT 4-6/09 4-6/08 MEUR % MEUR %Net sales 80.9 100 92.9 100Other operating income 3.2 4.0 0.6 0.6Depreciation and write-downs -2.2 -2.7 -2.6 0.0Operating profit 1.9 2.3 4.0 4.3Financial income and expenses -1.0 -1.2 -1.1 -1.2Profit before taxes 0.9 1.1 2.9 3.1Profit for the period continuing operations 0.7 0.9 1.6 1.7Profit for the period discontinued operations 1.4 1.5Profit for the period 0.7 3.0Other comprehensive incomeTranslation differences 0.3 0.0Cash flow hedges -0.9 0.3Net result recognized directly to equity -0.5Income tax on other comprehensive income 0.2 -0.2Other comprehensive income for the year, netof taxes -0.4 -0.4Total comprehensive income 0.3 2.6Profit attributable to shareholders 0.7 3.0Minority interest 0.0 0.0Total comprehensive income attributable toshareholders 0.3 2.6Minority interest 0.0 0.0 1-6/09 1-6/08 1-12/08 MEUR % MEUR % MEUR %Net sales 159.3 100.0 145.4 100.0 358.2 100.0Other operating income 3.9 2.4 1.1 0.8 1.6 0.4Depreciation and write-downs -4.5 -2.8 -4.9 -3.4 -10.8 -3.0Operating profit 5.7 3.6 6.9 4.7 14.1 3.9Financial income and expenses -2.3 -1.4 -1.6 -1.1 -4.6 -1.3Profit before taxes 3.4 2.1 5.3 3.6 9.5 2.7Profit for the periodcontinuing operations 2.6 1.6 3.7 2.5 7.0 2.0Profit for the perioddiscontinued operations 0.5 0.0 8.5Profit for the period 2.6 4.2 15.5Other comprehensive incomeTranslation differences -0.6 -0.2 -1.5Cash flow hedges 0.0 -0.5 0.9Net result recognizeddirectly to equity -0.5Income tax on othercomprehensive income 0.0 0.3 -0.2Other comprehensive incomefor the year, net of taxes -0.6 -0.9 -0.8Total comprehensive income 2.0 3.3 14.7Profit attributable toshareholders 2.6 4.2 15.5Minority interest 0.0 0.0 0.0Total comprehensive incomeattributable to shareholders 2.0 3.3 14.7Minority interest 0.0 0.0 0.0ASPO GROUP BALANCE SHEET 06/09 06/08 Change 12/08 MEUR MEUR % MEURAssetsNon-current assetsIntangible assets 16.3 16.5 -1.2 17.0Goodwill 40.5 41.9 -3.3 40.4Tangible assets 69.1 57.5 20.2 69.1Available-for-sale assets 0.2 0.2 0.0 0.2Long-term receivables 1.3 1.1 18.2 1.1Shares in associated companies 0.9 1.1 -18.2 0.9Total non-current assets 128.3 118.3 8.5 128.7Current assetsInventories 26.3 37.7 -30.2 33.4Sales and other receivables 43.3 55.6 -22.1 43.3Cash and bank deposits 6.9 20.1 -65.7 12.6Total current assets 76.5 113.4 -32.5 89.3Assets classified as held for sale 44.9 0.7Total assets 204.8 276.6 -26.0 218.7Shareholders' Equity and LiabilitiesShareholders' equityShare capital 17.7 17.7 0.0 17.7Other shareholders' equity 42.1 37.1 13.5 48.3Shareholders' equity attributableto equity holders of the parent 59.8 54.7 9.3 66.0Minority interest 0.0 0.1 -100.0 0.0Long-term liabilities 82.7 33.1 149.8 50.2Short-term liabilities 62.3 122.6 -49.2 102.0Liabilities classified as held for sale 66.1 0.5Total shareholders' equityand liabilities 204.8 276.6 -26.0 218.7STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYA = Share CapitalB = Premium FundC = Fair Value FundD = Other FundsE = Repurchased SharesF = Translation DifferenceG = Retained EarningsH = TotalI = Minority InterestJ = Total Shareholders' EquityMEUR A B C D E F G H I JBalance at12/31/2008 17.7 4.3 -0.3 0.5 -3.7 -1.5 49.0 66.0 0.0 66.0Totalcomprehensiveincome 0.0 -0.6 2.6 2.0Dividend payment -10.8 -10.8Share basedpayment 0.2 0.2Equity share ofconvertible capitalloan 3.3 3.3Share ofdeferred taxes -0.9 -0.9Balance at6/30/2009 17.7 4.3 -0.3 2.9 -3.7 -2.1 41.0 59.8 0.0 59.8Balance at12/31/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0Totalcomprehensiveincome -0.2 -0.2 3.7 3.3Dividend payment -10.8 -10.8Share repurchase -0.6 -0.6Balance at6/30/2008 17.7 4.3 -1.2 0.5 -3.6 -0.2 37.2 54.7 0.1 54.8ASPO GROUP CASH FLOW STATEMENT 1-6/09 1-6/08 1-12/08 MEUR MEUR MEURNet operational cash flow 6.0 7.1 30.9InvestmentsInvestments in tangible andintangible assets -3.9 -4.1 -22.0Gains on the sale of tangibleand intangible assets 3.0 0.4 0.7Purchases of subsidiary shares -77.9 -78.2Sale of the subsidiary shares 28.8Total cash flow from investments -0.9 -81.6 -70.7FinancingShare acquisition -0.6 -0.8Share disposal 0.1 0.1Change in short-term borrowings -35.0 93.5 16.9Change in long-term borrowings 35.0 -0.8 34.0Profit distribution to minorities -0.1Dividends paid -10.8 -10.8 -10.8Total financing -10.8 81.4 39.3Increase / Decrease in liquid funds -5.7 6.9 -0.5Liquid funds in beginning of year 12.6 13.2 13.1Liquid funds at period end 6.9 20.1 12.6KEY FIGURES AND RATIOS 1-6/09 1-6/08 1-12/08Earnings per share, EUR continuing operations 0.10 0.15 0.27Earnings per share, EUR discontinued operations 0.01 0.33Earnings per share total 0.10 0.16 0.60EPS adjusted for dilution, EUR continuingoperations 0.09 0.15 0.26EPS adjusted for dilution, EUR discontinuedoperations 0.01 0.30EPS adjusted for dilution, EUR total 0.09 0.16 0.56Comparable earnings per share, EUR continuingoperations 0.02 0.27Comparable earnings per share, EUR,Discontinued operations -0.03The whole groupEquity per share, EUR 2.32 2.12 2.56Equity ratio, % 29.4 20.2 30.6Gearing, % 142.2 199.3 124.9ACCOUNTING PRINCIPLESAspo Plc's interim report has been compiled in accordance with theprinciples of IAS 34 Interim Financial Reporting. IAS 1 Presentationof financial statements and IFRS 8 Operating segments have beenapplied to the report. In other regards, the same accountingprinciples that were applied to the Financial Statement for December31, 2008, have been applied. The calculation formulas for key figuresare explained in the 2008 Financial Statements on page 83. The reportis unaudited.FINANCIAL REPORTSAspo Plc will publish the following Interim Report in 2009:for the third quarter on October 26, 2009INFORMATION MEETINGAspo will arrange a press conference for the media and analyststoday, Monday 24 August, 2009, starting at 14:30 at Hotel Kämp,Pohjoisesplanadi 29, 00100 Helsinki, Finland.ASPO PlcAki Ojanen Arto MeitsaloCEO CFOFor more information, please contactAki Ojanen, tel. +358 9 521 4010, +358 400 106 592aki.ojanen(at)aspo.comwww.aspo.comAspo is a conglomerate that owns and develops businesses in theBaltic Sea region focusing on demanding B-to-B customers. The aim ofour strong corporate brands - ESL Shipping, Leipurin, Telko andKaukomarkkinat - is to be the market leaders in their sectors. Theyare responsible for their own operations, customer relationships andthe development of these. Together they generate Aspo's goodwill.Aspo's Group structure and business operations are developedpersistently without any predefined schedules.Distribution:NASDAQ OMX HelsinkiKey Mediawww.aspo.comhttp://hugin.info/3023/R/1336544/318178.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 24.08.2009 - 11:59 Uhr
Sprache: Deutsch
News-ID 5005
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