Aspo is on the leap of growth thanks to long-term developments.

Aspo is on the leap of growth thanks to long-term developments

Aspo is on the leap of growth thanks to long-term developments.

In 2018, Aspo made significant investments to ensure future growth and reach its financial targets. We expect Aspo’s strong financial development to continue, and indebtedness to decrease.

Key figures 2018

2018 was a year of good growth for Aspo, and we made the best operating profit in our history before the impairment loss recognized on goodwill. The shipping company’s new vessels and the business acquisition completed in Sweden, combined with investments in expanded operations, for example in Central Asia, enabled Aspo’s strong financial development to continue and indebtedness to decrease.

Net sales

540.9 M€

+7.7 %
502.4 M€ (2017)

By Segment

ESL Shipping

120.1 M€

+51.1 % (2017)

22 %

Leipurin

121.0 M€

-1.1 % (2017)

23 %

Telko

266.2 M€

+1.5 % (2017)

49 %

Kauko

33.6 M€

-13.0 % (2017)

6 %

By market area

Finland

175.7 M€

+9.3 % (2017)

33 %

Scandinavia

62.0 M€

+22.5 % (2017)

11 %

Baltic

60.6 M€

+3.1 % (2017)

11 %

Russia, other CIS
countries + Ukraine

171.9 M€

+4.2 % (2017)

32 %

Other countries

70.7 M€

+5.1 % (2017)

13 %

Operating profit adjusted by the impairment loss recognised on goodwill *

25.4 M€

+10.0 %
23.1 M€ (2017)

Operating profit

20.6 M€

-10.8 %
23.1 M€ (2017)

By segment

ESL Shipping

15.1 M€

+11.9 % (2017)

58 % **

Leipurin

3.3 M€

+6.5 % (2017)

13 % **

Telko

12.1 M€

+12.0 % (2017)

47 % **

Kauko

-4.7 €

-2250.0 % (2017)

-18 % **

* Operating profit adjusted by an impairment loss of EUR 4.8 million recognized on Kauko's goodwill

** The percentage is calculated from total operating profit of segments, without operating profit of Other operations -segment

Due to long-term developments, Aspo is on the verge of growth

Record-high net sales 540.9 M€

Responsible operations as the foundation for sustainable value creation

ASPO_CEO_year2018_etelka

Sustainable value creation

We believe that socially, financially and environmentally sustainable operations are fundamental for long-term value creation. As an active owner, we continuously want to develop our operations and advance good operating practices in our operating countries.

Following our own requirements, which are partly stricter than general regulations, is crucial particularly in less developed markets. In the social responsibility of our businesses that represent trade and logistics, the questions of human rights in our supply chains play an important role among other things. Along with managing impacts of our operations, we want to help our customers to develop responsible operations by offering sustainable options, for example, for logistics.

Aspo joined the UN’s Global Compact initiative

Aspo’s application to join the UN’s Global Compact initiative was approved and thus Aspo has committed to adopt, support and implement the ten principles in the areas of human rights, labour, environment and anti-corruption within our scope of influence.

UN global compact

The lowest emission dry cargo vessels in the world

We believe the only way to develop maritime transport is through solutions based on automation and environmental efficiency. ESL Shipping’s new dry bulk carriers ms Viikki and ms Haaga, which are among the lowest emission vessels in the world, started operating in the Baltic Sea in fall 2018.

Food waste burdens finances and the environment

Food waste, i.e. unnecessarily produced food, is a problem for the environment, as it causes unnecessary greenhouse gas emissions. The goal of Leipurin is to reduce its environmental footprint by minimizing food waste and the volume of waste in general.

Motivated employees are Aspo’s key assets

Aspo Group’s employees are its key resources. All employees must be able to work in an inspiring and motivating atmosphere. Occupational safety is one of the most important factors related to wellbeing at work.

Success is built on open interaction

Open interaction, compliance with agreements and mutual trust are key factors in the success of Telko and its subcontractors. Telko is currently developing the responsible management of the supply chain.

Financial targets

Reaching our long-term financial targets by 2020 is proceeding as planned. The investments and business acquisitions completed in 2018 strengthen our future cash flow even further.

Operating profit
%

Aspo is able to reach its operating profit target of seven percent, above all, by investing in the development of its customer accounts and establishing a product and service range with a higher margin.

7 %

Aspo is able to reach its operating profit target of seven percent, above all, by investing in the development of its customer accounts and establishing a product and service range with a higher margin.

Return on equity
%

Aspo's objective is to reach an excellent ROE level of more than 20 percent on average.

20 %

Aspo's objective is to reach an excellent ROE level of more than 20 percent on average.

Gearing
%

Aspo's target in terms of gearing is at most 100 percent.

100 %

Aspo's target in terms of gearing is at most 100 percent. As a conglomerate, Aspo has a low business risk and thus able to withstand indebtedness better than companies with higher operational risks. Aspo uses leverage in its operations.

Dividend policy

Aspo's goal is to annually increase the amount of dividends.

Aspo revised its dividend policy in November 2018. In 2017, Aspo was among the first Finnish companies to distribute dividends twice a year.