ASPO Plc STOCK EXCHANGE BULLETIN February 14, 2008 at 8.00
a.m.
Net sales rose to EUR 266.6 million, the operating profit was EUR
23.8 million
- The Group's net sales amounted to EUR 266.6 million (EUR 225.9
million)
- Operating profit totaled EUR 23.8 million (EUR 12.8 million)
- Operating profit includes sales profit of EUR 10.2 million from the
sale of a vessel and non-recurring expenses of EUR 1.8 million posted
by the Systems Division
- Profit before taxes was EUR 21.4 million (EUR 11.1 million)
- Earnings per share totaled EUR 0.59 (EUR 0.32)
- The dividend proposal is for EUR 0.42 (EUR 0.41)
- The Group's net sales growth is expected to continue and a good
operational performance is expected for fiscal 2008.
KEY FIGURES
2007 2006 Change
%
Net sales, MEUR 266.6 225.9 18.0
Operating profit, MEUR 23.8 12.8 85.9
Share of net sales, % 8.9 5.7
Profit before taxes, MEUR 21.4 11.1
Share of net sales, % 8.0 4.9
Earnings per share, EUR 0.59 0.32
Diluted earnings per share, EUR 0.56 0.31
Comparable earnings per share, EUR 0.30 0.32
Equity per share, EUR 2.43 2.26
Equity ratio, % 45.1 45.2
Gearing, % 32.4 35.7
Personnel at the end of period 699 694
Gustav Nyberg, CEO of Aspo:"A strong market and successful business and vessel acquisitions
boosted Aspo's net sales and earnings in 2007. Chemicals recorded the
highest earnings in its history, supported by the corporate
acquisition. Shipping also improved its earnings, despite its reduced
transport capacity. Even though Systems clearly fell short of its
objectives, the Aspo Group's performance was satisfactory.
The share of the Eastern markets in Aspo Group's net sales increased
to more than one-third in 2007. Our operations in Russia, Belarus and
the Ukraine saw a strong growth trend and were profitable. The
increasing exports from the area boosted Shipping's net sales. Aspo's
organization was strengthened significantly to support our expansion.
Aspo Group's operating model with a focus on the Baltic Sea region
has proved successful. The corporate acquisition carried out by
Chemicals significantly strengthened our position in the mature
Nordic market. At the same time, we succeeded in expanding our
operations in the dynamic Eastern markets. We are now in a good
position to efficiently utilize developments in both the mature and
the growing markets in the Baltic Sea area."
OPERATIONAL PERFORMANCE
At the beginning of 2007, positive market conditions were expected to
continue in the Baltic Sea region. The net sales and earnings of the
foreign units, in particular, were expected to continue their strong
growth. It was anticipated that domestic operations would develop
more modestly.
Price fluctuations in the global chemicals markets continued, but
average prices were slightly up. The overall price trend was pushed
upwards by the rising oil prices. The strengthening of the euro put a
dampener on the upward pressure on prices in the Baltic Sea region.
Contrary to expectations, sea freight rates continued clearly up, and
the dry bulk cargo market, of particular importance to us, was strong
throughout the year. Due to the sale of old tonnage, our transport
capacity reduced, but we managed to compensate for the situation by
improved operational efficiency.
The market situation in fuel distribution was strong. Sales grew more
rapidly than anticipated during the year. However, our cost
management failed, and the end result was unsatisfactory.
Towards the end of the year insecurity increased in the market, which
was evident to some extent in our customers' behavior as well.
Aspo Chemicals
A fairly steady demand for chemicals in Asia and Europe continued,
and the price trend was slightly up throughout the year. Towards the
end of the year, the insecurity regarding the global economic trend
was also reflected in the chemicals market, which increased
speculative trading activities.
Chemicals carried out a major corporate acquisition by purchasing
Wilfert Chemical Nordic A/S, whose net sales stood at about EUR 21
million and operating profit at about EUR 0.6 million in 2006. The
company, established in 1984, distributes plastic raw materials in
Denmark, Sweden, Norway and Finland. The goal of the acquisition was
to expand our geographical coverage and reinforce our position in the
Nordic countries. The integration of the company succeeded well; the
unit's net sales grew and its earnings improved.
Net sales of the Chemicals Division grew substantially in 2007,
boosted by both the implemented corporate acquisition and positive
organic growth in the Eastern markets. Strong growth continued in
Russia and the Ukraine; Belarus was introduced as a new market area.
With the net sales growth, operating profit also increased and
reached a record high. However, profitability was slightly weaker
than last year. The development of operating profit varied
considerably in different markets and different products. In Finland,
the overall performance development was weak and last year's earnings
figures were not attained, due to modest volume growth and fierce
competition. The Scandinavian market developed positively. The best
level in operating profit was attained in the Eastern markets.
Aspo Shipping
Demand was strong in the global bulk freight markets and freight
rates continued to rise. The market situation in the Baltic Sea area
also remained good and freight rates were up, partly due to higher
fuel prices.
The Shipping Division's transport capacity was smaller than last year
because the biggest vessel of the fleet was sold during the first
half of 2007. Despite the lower transport capacity, net sales grew
and earnings improved, due not only to the rising freight rates, but
also more efficient operations, more balanced availability of goods
and successful cost management.
Total shipping volume increased to 15.1 million tons (14.6). The
steel industry accounted for about 60% of the volume and the energy
industry for about 32%. The steel industry's share of the volume has
increased over the past few years. Freights and services for the
energy industry continued at the same level as last year, but the
focus of shipping has shifted to Russian export ports over the past
few years.
The proportion of United States dollar-denominated amounts in total
billing decreased last year, comprising 29% on average. The sale of
the company's largest vessel contributed to this trend as it had
largely operated on the dollar-based spot market. The shipping
company has also actively aimed at increasing the proportion of
euro-denominated contracts in order to reduce the currency risk.
The investment program in the Shipping Division proceeded as planned.
The first of the two 20,000 gross register ton vessels that are being
constructed in India should be completed towards the end of the
summer, with the other due in 2009.
Aspo Systems
Market conditions in the service station sector remained positive
throughout the year. The reasons behind the trend include both
corporate acquisitions in the sector, leading to the reforms of
service station networks, and technological development, providing
the basis for customers to launch investments. Investments in
technology were mainly related to the chip card upgrade and the
distribution of new fuel mixtures.
Net sales increased by almost 7% year on year and clearly exceeded
the long-term average growth rate in the sector. As for service and
maintenance, the largest business unit, net sales and profitability
improved in all markets, except for Sweden. Equipment and software
deliveries related to fuel payments increased less than expected. The
deliveries of fuel dispensing equipment to the growing Eastern
markets continued to increase. Except for Sweden, operations were
profitable in all market areas.
The aims of the 2006 action plan to streamline and rationalize
operations in the Systems Division in order to improve profitability
and show positive profit were not attained. However, operational
performance improved during the year and earnings for the last
quarter allowed showing a slight full-year profit.
The comparable operational result was EUR 0.3 in the black. The
Division's profitability issues focus on Sweden, and action has been
taken to remedy the situation there. Non-recurring expenses of EUR
1.8 million due to, inter alia, dismissals of personnel and
write-downs, have been recognized in the financial statements.
NET SALES
The Aspo Group's net sales were up by EUR 40.7 million (18.0%) to EUR
266.6 million. The Group's direct exports combined with the net sales
of foreign subsidiaries totaled EUR 131.7 million (88.5).
The net sales of the Chemicals Division increased by 38.9% to EUR
123.8 million (89.1), boosted by the business acquisition at the
beginning of the year. The net sales of the Shipping Division were up
by 2.9% to EUR 85.1 million (82.7). Meanwhile, the Systems Division
saw an increase of 6.7% in net sales, totaling EUR 57.7 million
(54.1).
Net Sales by Division, MEUR
10-12/07 10-12/06 Change 2007 2006
Chemicals 32.0 26.2 5.8 123.8 89.1
Shipping 22.2 22.7 -0.5 85.1 82.7
Systems 17.2 17.5 -0.3 57.7 54.1
TOTAL 71.4 66.4 5.0 266.6 225.9
Net Sales by Market Area, MEUR
10-12/07 10-12/06 Change 2007 2006
Finland 41.2 36.9 4.3 154.0 137.4
Nordic countries 13.3 14.7 -1.4 58.5 47.8
Baltic countries 5.7 5.2 0.5 18.4 15.6
Russia, etc. 11.2 9.6 1.6 35.7 25.1
TOTAL 71.4 66.4 5.0 266.6 225.9
EARNINGS
The Aspo Group's operating profit for 2007 amounted to EUR 23.8
million (12.8). Operating profit includes a sales profit of EUR 10.2
million from the sale of a vessel and non-recurring expenses of EUR
1.8 million posted by the Systems Division.
The Chemicals Division's operating profit grew by EUR 0.4 million to
EUR 3.1 million (2.7). More than half of the operating profit was
generated by international subsidiaries. Due to the sale of a vessel,
the Shipping Division recorded an operating profit of EUR 25.1
million (12.6). Due to the about EUR 1.8 million write-downs and
expenses recorded, the Systems Division's operating profit decreased
by EUR 0.5 million and showed a loss of EUR 1.5 million (-1.0).
The depreciation recognized by the Group grew by a half million euro
to EUR 9.8 million. The Chemicals Division recorded EUR 0.5 million
in depreciation, the Shipping Division EUR 8.7 million and the
Systems Division EUR 0.5 million.
The Group's net financial expenses totaled 0.9% of net sales, or EUR
2.4 million (1.8).
Earnings before taxes amounted to EUR 21.4 million (11.1). Earnings
for the fiscal year totaled EUR 15.4 million (8.2). The Group's
direct taxes and the change in deferred tax liabilities amounted to
EUR 6.0 million (2.8).
Operating Profit by Division, MEUR
10-12/07 10-12/06 Change 2007 2006
Chemicals 0.6 0.7 -0.1 3.1 2.7
Shipping 4.1 4.5 -0.4 25.1 12.6
Systems -1.1 0.4 -1.5 -1.5 -1.0
Group Administration -0.9 -0.3 -0.6 -2.9 -1.5
TOTAL 2.7 5.3 -2.6 23.8 12.8
Stock Performance
The Group's earnings per share totaled EUR 0.59 (0.32) and the
adjusted earnings per share stood at EUR 0.56 (0.31). Equity per
share was EUR 2.43 (2.26).
INVESTMENTS
The Group's investments during the year totaled EUR 11.0 million
(10.2). The majority of the investments consisted of the chemicals
business acquisition and advance payments for vessel acquisitions.
Investments by Division, MEUR
10-12/07 10-12/06 2007 2006
Chemicals 0.9 0.1 5.7 1.3
Shipping 0.0 0.0 3.8 7.3
Systems 0.7 0.4 1.4 1.4
Group Administration 0.0 0.1 0.1 0.2
TOTAL 1.6 0.6 11.0 10.2
FINANCING
The Group's liquidity was good throughout the year, with liquid funds
amounting to EUR 13.1 million (9.1) on the balance sheet date.
Interest-bearing liabilities on the consolidated balance sheet
totaled EUR 33.6 million (29.9) on the balance sheet date, while
interest-free liabilities amounted to EUR 34.0 million (31.9).
The Aspo Group's net gearing was 32.4 % (35.7), the return on equity
was 25.4% (14.1), and the equity ratio adjusted for deferred tax
liabilities was 45.1% (45.2).
RISK MANAGEMENT
Risk management is a part of Aspo Group's management control system.
Its objective is to identify, analyze and contain possible
operational threats and risks. Risks are considered to include all
internal and external factors
affecting Aspo's ability to reach its business objectives and to
generate earnings.
Risks are surveyed, classified and assessed systematically, and
decisions on necessary measures are then taken. For certain risks,
the principles and the essential contents of risk management are
defined in Group level policies and instructions. Damage risks are
covered by appropriate insurance.
The most important business risks in terms of probability and impact
have to do with operations and particularly customer loyalty,
adequacy of equipment, the protection of margins and retaining key
personnel. Consequently, for Aspo, risk management does not involve
just securing sufficient insurance coverage, but it is an essential
part of daily operations and is included in day-to-day processes.
Aspo Group's financing and financial risk management are handled
centrally by the parent company in accordance with the financial
policy approved by the Board of Directors.
ORGANIZATION
Mr. Aki Ojanen, eMBA, was appointed Chief Operating Officer and
Deputy CEO of Aspo Plc from October 1, 2007. The development of
business operations and their expansion in the growing market in the
East fall within his area of responsibility.
PERSONNEL
At year-end, the Aspo Group employed 699 (694) personnel and an
average of 691 (693) during the year. Office staff represented 327
(312) and non-office workers 364 (381) of the total. The parent
company employed 11 (9) office staff at year-end and 11 (9) on
average during the year.
Of Aspo Group personnel, 57% (60) work in Finland, 29% (28) in other
Nordic countries, 5% (5) in the Baltic countries, and 9% (7) in
Russia. Men represented 70% (82) and women 30% (18) of total
personnel. In the Aspo Group, 99% (98) of employment contracts were
full-time. During the year, 86 (47) new employment contracts were
signed. Total wages and salaries paid to personnel in 2007 amounted
to EUR 27,219,384 (26,493,996).
Average Personnel by Division
2007 2006
Chemicals
Office staff 122 90
Non-office workers 10 14
Total 132 104
Shipping
Office staff 28 30
Crew members 211 227
Total 239 257
Systems
Office staff 166 183
Non-office workers 143 140
Total 309 323
Group Management 11 9
TOTAL 691 693
Rewards and Incentives
The Aspo Group has introduced a profit-sharing scheme and a personnel
fund, which at this point cover all of Aspo Group personnel working
in Finnish subsidiaries. Part of the Group's earnings is placed in
the personnel fund as a profit bonus. The objective is for the fund
to use the majority of the profit bonuses to acquire Aspo Plc shares.
The long-term objective is to make the personnel one of the company's
key shareholder groups.
In January 2006, Aspo Plc's Board of Directors decided to introduce a
share price-linked incentive scheme for key personnel, in which any
bonus is based on the performance of the company's share in the next
three years. The scheme covers approximately 30 Aspo Group executives
and key employees. The bonus, which is linked to the share price
performance, will be paid out in cash when the scheme matures in
2009.
RESEARCH AND DEVELOPMENT
The Aspo Group's research and development activities are organized
according to the nature of each Division. In the Chemicals and
Shipping Divisions, R&D is mainly focused on the development of
operations, methods and production technology without a dedicated
organization, which is why these development investments are recorded
under normal operating expenses without an itemized breakdown.
The Autotank Group representing the Systems Division invests heavily
in R&D with a special focus on the development of new payment
solutions. In Finland and Sweden, a total of 30 (20) people have
participated in research and development. During fiscal 2007,
investments amounted to EUR 2.4 million (1.0), accounting for 4.2%
(2.0) of the Autotank Group's net sales.
ENVIRONMENT
The Aspo Group's ordinary activities do not cause any significant
harm to the environment. Group companies follow Aspo's environmental
policy in their environmental affairs management, the key principle
being ongoing operational improvement and sustainable development.
Aspo actively pays attention to environmental issues in its
operations and continuously monitors legislation and recommendations
related to its business and amendments to them. We want to be
pioneers in all of our operations and also anticipate future
developments in environmental regulations. Aspo's environmental
policy is currently being updated; environmental isssues have been
integrated into the company's strategy process.
MANAGEMENT AND AUDITORS
At Aspo Plc's Annual Shareholders' Meeting held on March 29, 2007,
Mr. Matti Arteva, Mr. Kari Haavisto, Mr. Esa Karppinen, Mr. Roberto
Lencioni and Mr. Kari Stadigh were re-elected to the Board of
Directors for a term of one year. Kari Stadigh has acted as the
Chairman and Matti Arteva as Vice-Chairman of the Board.
Mr. Gustav Nyberg acts as the company's CEO, Mr. Aki Ojanen as the
COO and Deputy CEO since October 1, 2007.
The company auditor is PricewaterhouseCoopers Oy, an authorized
public accountant firm with Jouko Malinen as the auditor in charge.
BOARD AUTHORIZATIONS
The Annual Shareholders' Meeting of 2007 authorized the Board of
Directors to decide on a share issue, through one or several
instalments, by transferring an aggregate maximum number of 758,250
treasury shares.
The shares will be used to finance any acquisitions or other
transactions, or for other purposes to be decided on by the Board of
Directors. The authorization includes the right for the Board to
decide on the terms and conditions applicable to the share issue, as
well as the right to decide on a directed share issue deviating from
the shareholders' pre-emptive right on conditions laid down by law.
The shareholders further authorized the Board to use funds included
in distributable profit to repurchase a maximum of 400,000 company
shares irrespective of the shareholders' holdings. The shares will be
purchased through public trading organized by OMX Nordic Exchange
Helsinki at the going price under the terms stated in the regulations
of OMX Nordic Exchange Helsinki.
The shares will be acquired to finance any acquisitions or other
transactions, for the balancing of the financial risk in the
company's share-based incentive scheme or for other purposes to be
decided on by the Board of Directors. The Board may not exercise the
authorization if, after the acquisition, the company or its
subsidiary were to possess or have as a pledge more than ten (10)
percent of the company's stock.
The authorization is valid until the Annual Shareholders' Meeting of
2008, but no more than 18 months from the approval at the
Shareholders' Meeting.
Under the authorization granted at the Shareholders' Meeting, during
fiscal 2007, the Board of Directors decided to dispose of 100,840
Aspo Plc shares in partial payment for the acquisition of Wilfert
Chemical Nordic A/S by Chemicals, and 5,000 shares to COO Aki Ojanen
within the context of the company's management incentive program. The
disposal price was the fair value at the time of disposal based on
public trading.
In its meeting on June 26, 2007, the Board of Directors decided to
repurchase a maximum of 400,000 shares through public trading on OMX
Nordic Exchange Helsinki at the current market price at the time of
acquisition according to the terms stated in the regulations of OMX
Nordic Exchange Helsinki. A total of 246,830 shares were repurchased
during the fiscal period. The average purchase price of the shares
was EUR 6.71. The total purchasing cost of EUR 1,655,689.18 was
deducted from the unrestricted equity account.
EQUITY
Aspo Plc's registered share capital on December 31, 2007, was EUR
17,686,664.37 and the total number of shares was 26,398,503. The
company's own shareholding was 490,240 shares, accounting for 1.86
percent of Aspo Plc's stock.
On November 15, 2007, Varma Mutual Pension Insurance Company
announced that their holdings fell below 5% of the voting rights and
share capital in Aspo Plc.
During 2007, a total of 5,060,372 Aspo Plc shares were traded on OMX
Nordic Exchange Helsinki at EUR 35.3 million, or 19.2% of the shares
changed owners. The share reached a high of EUR 7.80 and a low of EUR
6.30 during the period. The average price was EUR 6.97 and the
closing price was EUR 6.44. The company has a liquidity providing
agreement regarding its share with Kaupthing Bank Oyj.
CONVERTIBLE CAPITAL NOTES
Aspo Plc has issued Convertible Capital Notes worth EUR 15,557,500.
The validity period for the notes runs from June 4, 2004 to June 4,
2009. The notes will be repaid in a single instalment on June 4, 2009
provided that the repayment conditions specified in chapter 5 of the
Companies Act and in the terms and conditions of the Convertible
Capital Notes are met. The notes carry a fixed 5% interest rate.
The capital notes can be converted into Aspo stock. Each EUR 500 note
entitles the holder to covert the note into 84 Aspo Plc shares. The
conversion rate is EUR 5.95.
During the year, convertible capital notes were used to subscribe for
350,700 shares, and the share capital was correspondingly increased
by EUR 234,969.00.
DIVIDEND PROPOSAL
At the Annual Shareholders' Meeting scheduled for April 10, 2008, the
Board will propose that a dividend of EUR 0.42 be distributed for
fiscal 2007 on shares outstanding and that no dividend be paid for
treasury shares.
PROSPECTS FOR 2008
Overall insecurity in global raw material markets has increased
considerably. The main concern is the decline of economic growth in
the United States and its potential impact on Europe and Asia.
Interest rates appear to be taking a downward turn, which may have a
positive impact on demand.
Aspo's business operations focus on narrow niche sectors. The growth
and profitability of operations mainly depend on demand from the
industrial sector in the Baltic Sea area and the CIS market. In the
Nordic countries, a stable basis for demand appears to continue
during fiscal 2008. The growth trend in the Eastern markets, in
Russia and the Ukraine, in particular, is also expected to continue.
The Group's net sales are expected to grow further and a good
operational performance is expected for 2008.
Aspo Chemicals
Insecurity in the markets will probably increase until a more
detailed picture of the impact of the United States' economic
situation on the global economy emerges. The prices for
petrochemicals follow the changes in the demand for oil and oil
prices. The impact in Europe largely depends on the overall economic
situation and the strength of the euro.
The Chemicals Division aims at continued growth in net sales and
operating profit. This goal will be attained by both the exploitation
of new market areas and corporate acquisitions. Modest growth is
expected in the Nordic countries, while strong growth appears to
continue in the CIS countries.
The total net sales of the Chemicals Division are expected to grow
and, according to current estimates, the Division also has good
potential for increasing its operating profit.
The largest risks for the Chemicals Division are related to the
potentially negative impact of the European Union's REACH Regulation.
Other risks include political and financial instability in Russia and
the Ukraine.
Aspo Shipping
The international dry bulk cargo market appears to be continuing
stronger than usual, and good demand is expected to continue in the
Baltic Sea as well.
The company's operations have become more diversified over the past
few years, and a wide service range for the needs of exporting and
importing industry have been developed besides traditional shipping.
The steel industry in the Baltic Sea region has become the company's
largest customer group. The proportion of the energy industry is
slightly less than one-third.
Shipping capacity will probably remain at the same level as last year
for a large part of the year. Of the two vessels under construction,
the first is due to start in the Baltic Sea traffic towards the end
of the year. Improvements in efficiency may increase the Division's
net sales slightly and operating profit may continue to improve
slightly without any unexpected changes in the flow of materials. The
increase in capacity towards the end of the year is not expected to
have an impact on net sales or earnings in 2008.
The currency risks involved in the Shipping Division's operations
are, for the most part, hedged by forward contracts. To protect
ourselves against the risks associated with the fluctuation in fuel
prices, our customer contracts include special bunker clauses.
Aspo Systems
Brisk market conditions are expected to continue in fuel
distribution. In the Nordic countries and the new EU countries,
demand will be boosted by investments in technology, mainly related
to the equipment and software required for the chip card upgrade. The
level of automation in service station networks will continue to be
enhanced; smaller manned stations will be automated and new unmanned
stations will be established in connection with shopping malls in
densely-populated areas. The CIS countries will also see investments
in the construction of large manned service stations, besides
automation. Payment cards are gradually becoming more common in these
markets, and extensive projects related to card payments are being
planned.
The corporate acquisitions carried out by Autotank over the past few
years have been successfully integrated, and the Group has become a
market leader in its field in the entire Baltic Sea region. We
believe that the reorganization of the Swedish operations will result
in a profitable performance in Sweden as well.
The Division's net sales growth is expected to continue, and a clear
improvement in financial performance is expected compared with the
previous year.
Helsinki, February 14, 2008
ASPO Plc
Board of Directors
ASPO GROUP INCOME STATEMENT
10-12/07 10-12/06
MEUR % MEUR %
NET SALES 71.4 100.0 66.4 100.0
Other operating income 0.5 0.7 0.2 0.3
Depreciation and write-downs -2.4 -3.4 -2.4 -3.6
OPERATING PROFIT 2.7 3.8 5.3 8.0
Financial income and expenses -0.9 -1.3 -0.4 -0.6
PROFIT BEFORE TAXES 1.8 2.5 5.0 7.5
PROFIT FOR THE PERIOD 0.7 1.0 3.6 5.4
Profit attributable
to shareholders 0.6 3.6
Minority interest
2007 2006
MEUR % MEUR %
NET SALES 266.6 100.0 225.9 100.0
Other operating income 10.8 4.1 0.9 0.4
Depreciation and write-downs -9.8 -3.7 -9.3 -4.1
OPERATING PROFIT 23.8 8.9 12.8 5.7
Financial income and expenses -2.4 -0.9 -1.8 -0.8
PROFIT BEFORE TAXES 21.4 8.0 11.1 4.9
PROFIT FOR THE PERIOD 15.4 5.8 8.2 3.6
Profit attributable
to shareholders 15.3 8.2
Minority interest 0.1
ASPO GROUP BALANCE SHEET 2007 2006 Change
MEUR MEUR %
ASSETS
Non-Current Assets
Intangible assets 2.6 1.2 116.7
Goodwill 10.1 8.2 23.2
Tangible assets 47.3 54.4 -13.1
Available-for-sale assets 0.2 0.2 0.0
Long-term receivables 2.5 2.3 8.7
Shares in associated companies 1.1 1.4 -21.4
Total Non-Current Assets 63.8 67.7 -5.8
Current Assets
Inventories 24.0 17.7 35.6
Sales and other receivables 40.0 34.9 14.6
Cash and bank deposits 13.1 9.1 44.0
Total Current Assets 77.2 61.7 25.1
TOTAL ASSETS 141.0 129.4 9.0
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' Equity
Share capital 17.7 17.5 1.1
Other shareholders' equity 45.3 40.7 11.3
Shareholders' equity attributable
to equity holders of the parent 62.8 58.1 8.1
Minority interest 0.2 0.1
Long-term liabilities 25.7 28.7 -10.5
Short-term liabilities 52.3 42.5 23.1
TOTAL SHAREHOLDERS' EQUITY
AND LIABILITIES 141.0 129.4 9.0
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
12/31/2006 17.5 2.5 -0.1 0.2 -1.8 0.1 39.7 58.1 0.1 58.2
Translation
differences -0.1
Transfer to the original
value of hedged funds 0.0
Increase in
hedging reserve -1.2
Share of
deferred taxes 0.3
Net profit for
the period 15.2 0.1
Dividend payment -10.6
Share repurchase -1.7
Share disposal 0.3 0.5
Conversion of
convertible bond
to shares 0.2 1.8
Balance at
12/31/2007 17.7 4.3 -1.0 0.5 -3.0 0.0 44.3 62.8 0.2 63.0
Balance at
12/31/2005 17.2 0.5 0.3 0.2 -1.9 40.9 57.4 0.1 57.4
IAS 8 adjustment*) 0.8
Balance at
1/1/2006 17.2 0.5 0.3 0.2 -1.9 41.7 58.2 0.1 58.3
Translation
differences 0.1 0.0
Amoount carried to
income statement -0.4
Share of
deferred taxes 0.1
Net profit for
the period 8.2
Increase in
hedging reserve -0.1
Share of
deferred taxes 0.0
Dividend payment -10.1 -0.1
Share disposal 0.0 0.0
Conversion of
convertible bond
to shares 0.2 1.9
Change in
minority interest -0.1 0.1
Balance at
12/31/2006 17.5 2.5 -0.1 0.2 -1.8 0.1 39.7 58.1 0.1 58.2
*) Comparative data has been adjusted with an IAS 8 compliant change
in accounting principles
ASPO GROUP CASH FLOW STATEMENT
2007 2006
MEUR MEUR
Net Operational Cash Flow 8.5 12.3
INVESTMENTS
Investments in tangible and
intangible assets -5.7 -10.2
Gains on the sale of tangible
and intangible assets 11.2 1.0
Purchases of subsidiary shares -4.7
Total Cash Flow from Investments 0.7 -9.2
FINANCING
Repurchase of shares -1.6
Share disposal 0.0 0.1
Change in short-term borrowings 6.8 7.2
Change in long-term receivables 0.1 -0.1
Change in long-term borrowings -1.4 -3.5
Dividends paid -10.6 -10.2
Total Financing -6.7 -6.5
Impact of changes in exchange rates 0.1 0.0
Increase / Decrease in Liquid Funds 2.6 -3.4
Liquid funds at the beginning of year 9.1 12.5
Liquid funds and used
overdraft limit at period end 11.7
Used overdraft limit at period end 1.5
Liquid funds at period end 13.2 9.1
Accounting principles
The Aspo Plc financial bulletin has been prepared in accordance with
IAS 34, Interim Financial Reporting. The accounting principles that
were applied in the preparation of the financial statements of
December 31, 2006 have been applied in the preparation of this
interim report. As of January 1, 2007, the Group has adopted the
following new standards: IFRS 7, Financial Instruments: Disclosures
and IAS 1 (amendment), Presentation of Financial Statements.
All figures are unaudited.
Wilfert Business Combination
ASSETS
Intangible assets 0.5
Tangible assets 0.1
Inventories 2.4
Sales and other receivables 3.4
TOTAL ASSETS 6.4
Long-term liabilities 0.4
Short-term liabilities 3.5
Net Assets 2.5
Goodwill arising from the acquisition 1.9
TOTAL ACQUISITION COST 4.4
The total acquisition cost of EUR 4.4 million comprise costs of EUR
0.1 million directly attributable to the acquisition. A part of the
acquisition cost (EUR 0.7 million) was paid in Aspo Plc shares.
Paid in cash -3.7
Overdraft limit of the acquired subsidiary -0.8
KEY FIGURES AND RATIOS
2007 2006
Earnings/Share, EUR 0.59 0.32
Diluted Earnings/Share, EUR 0.56 0.31
Comparable Earnings/Share, EUR 0.30 0.32
Equity/Share, EUR 2.43 2.26
Equity Ratio, % 45.1 45.2
Gearing, % 32.4 35.7
ASPO GROUP CONTINGENT LIABILITIES 2007 2006
MEUR MEUR
Securities on Group liabilities 34.6 37.1
Leasing liabilities 13.7 11.6
Derivative contracts 1.4 0.4
Helsiki, February 14, 2008
ASPO Plc
Gustav Nyberg Dick Blomqvist
CEO CFO
FINANCIAL INFORMATION
Aspo has arranged a press conference for the media and analysts to be
held today, February 14, 2008 starting at 10:00 at Palace Gourmet,
Eteläranta 10,
00130 Helsinki.
ANNUAL SHAREHOLDERS' MEETING
The Aspo Plc Annual Shareholders' Meeting is scheduled to be held on
Thursday, April 10, 2008 at 14:00 in the Stock Exchange Building at
Fabianinkatu 14, 00100 Helsinki.
FINANCIAL REPORTS 2008
The 2007 Annual Report will be published during week 12 in Finnish,
in English and in Swedish, later also in Russian. You can read and
order the report on our website at www.aspo.fi
Aspo Plc will publish three Interim Reports in 2008:
for the first quarter on April 29, 2008
for the second quarter on August 21, 2008
for the third quarter on October 23, 2008
For more information, please contact
Gustav Nyberg, +358 9 7595 256, +358 40 503 6420
gustav.nyberg@aspo.fi
DISTRIBUTION:
OMX Nordic Exchange Helsinki
The Media
www.aspo.fi
Aspo is a conglomerate focusing on sectors that require extensive
specialist knowledge. The company's customers include companies in
the energy sector and the process industry, in particular. Aspo's net
sales amounted to EUR 266.6 million in 2007. Aspo Chemicals accounted
for about 46%, Aspo Shipping for about 32%, and Aspo Systems for
about 22% of this figure.