Aspo Capital Markets Day 2021: Aspo publishes its focused strategy and new financial targets – aims for growth and higher profitability
01 December 2021 - 05:45PM
Aspo Capital Markets Day 2021: Aspo publishes its focused strategy
and new financial targets – aims for growth and higher
profitability
Aspo PlcInside informationDecember 1, 2021, at 8:45
a.m.Aspo Capital Markets Day 2021: Aspo
publishes its focused strategy and new financial targets – aims for
growth and higher profitabilityAspo holds a Capital
Markets Day today, December 1, 2021, starting at 1 p.m. in
Helsinki. The group's new strategy, updated long-term financial
targets and, in more detail, the current state of Aspo's business
operations and prospects will be presented. Aspo will also publish
its new sustainability targets for the group and its businesses.Our
new long-term financial targets are:
- Operating profit of 8 per cent (previously 6%)
- Net sales growth 5–10% per year (new target)
- Return on equity over 20%
- Long-term gearing below 130%
"Aspo creates value by owning and developing businesses in the
long term. The improved operating profit margin target is supported
by Aspo's business development measures and changes in the business
portfolio. In addition to organic growth, the aimed growth is
driven by investments in acquisitions and a strategic shift towards
a compounder profile. Mergers and acquisitions are a key part of
value creation, and the aim is to create growth and income flow
through these," says Rolf Jansson, CEO of Aspo.
Sustainability forms an integral part of our acquisition process
and ownership agenda. Aspo's businesses aim to be forerunners in
sustainability. In order to support our ESG commitments Aspo has
defined new ESG targets for the material areas of the group and its
business operations. The main target is to reduce emission
intensity CO2e (tn) / turnover (t€), by 30% by the year 2025. The
current level (2020) is 0.44 and the target level (2025) is
0.30.
Aspo 's dividend policy remains unchanged. Aspo aims for
annually increasing dividend payments leaving room for strategic
investments. The dividend will be paid in two installments as
before.Focusing of Aspo
business portfolio
In line with its strategy, ESL Shipping focuses on handysize and
coaster ship class operations with the aim of strengthening their
leading role as an industrial partner. The goal is to be a pioneer
in technological solutions, sustainability, quality of service and
new operating design. The shipping company's new operating profit
target is 14% (previously 12%). Telko’s organic growth is
accelerated by M&A activities and its new target level for
operating profit is 8% (previously 6%). Telko will continue to
focus on the value-added product segment. Leipurin aims for better
profitability through a separate development program launched to
improve and harmonize the company's management system by developing
both commercial and supply chain management capabilities. The
target for operating profit remains unchanged at 5%. In line with
its updated strategy, Leipurin aims to expand the bakery business
and strengthen its market position in the food industry. Growth
supports the operating profit target. Strategic options are being
assessed for the Kauko business and Vulganus Oy, which is part of
Leipurin, and these operations have been defined as non-core
businesses for Aspo.
Guidance for 2021
unchangedAspo’s operating profit will be
approximately EUR 30–36 (19.3) million in 2021. The guidance
includes the impact of the impairment of Kauko’s goodwill of EUR
3.4 million.
Following Capital Markets Day and presentation
materialsThe webcast can be followed live on Aspo's
website (www.aspo.com) from 1 p.m. today. Webcast recording and
presentation materials (in English) will be available on the
website after the event.ASPO Plc
Rolf JanssonCEO
Further information: Rolf Jansson, CEO, tel. +358 400
600 264, rolf.jansson@aspo.comKeijo Keränen, Group Treasurer,
+358 400 955 821,
keijo.keranen@aspo.comDistribution: Nasdaq
HelsinkiKey mediawww.aspo.com
Aspo creates value by owning and developing business operations
in the long term. Our companies aim to be market leaders in their
sectors. They are responsible for their own operations, customer
relationships and the development of these aiming to be forerunners
in sustainability. Aspo supports its businesses profitability and
growth with the right capabilities. Aspo Group has businesses in 18
different countries, and it employs a total of approximately 960
professionals.
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