YEAR 2022
TOWARDS
A NEW
ASPO
Aspo aims to achieve
sustainable long-term
growth by re-investing
earned profits in profitable
investment objects.
Aspo enables growth for
the businesses it owns and
aims to improve their
profitability and earnings
by developing them and
ensuring steady cash flows.
ASPO GROUP
Aspo in brief 3
CEO’s review 6
Strategy 7
BUSINESSES
ESL Shipping 8
Telko 10
Leipurin 12
SUSTAINABILITY
Aspo’s Sustainability Report 14
Environmental sustainability 19
Personnel 22
Governance 24
Sustainability tables 27
GOVERNANCE
Corporate Governance 34
Board of Directors 40
Group Executive Committee 42
Subsidiaries’ Boards of Directors 44
FINANCIAL STATEMENTS AND
MANAGEMENT REPORT
45
INFORMATION FOR INVESTORS 138
ASPO YEAR 2022
AUDITOR’S REPORT ON ESEF 139
20 21 22
2022 in brief
The year 2022 turned out to be highly different from what we still
assumed at the beginning of the year. Due to Russia’s invasion of
Ukraine we made the decision to withdraw from Russia and selected
eastern markets and to focus on growth and profitability on the
western markets in accordance with our renewed strategy.
In the financial sense, 2022 was a record-breaking year in many
ways. Our net sales were up significantly, and the comparable
operating profit was historically high. Gearing and return on equity
also exceeded our targets.
We are heading to 2023 from a good position, and we will continue
the determined implementation of our strategy. Our target is to
continue to bolster organic growth with acquisitions in line with our
strategy.
NET SALES
652.6 M€
+ 11%
COMPARABLE OPERATING PROFIT
55.3 M€
+ 30%
Focus increasingly
shifting to the west
In Aspo’s strategy, growth is sought
especially from the western market.
The eastern market’s share of Aspo’s
net sales has already dropped
significantly in recent years, and the
withdrawal from Russia and other
selected other eastern markets will
reduce the share even further.
Russia, other CIS countries and Ukraine market
area’s share of Aspo’s net sales.
Positive development in
sustainability
Aspo’s key focus areas include reducing emission
intensity and improving occupational safety. These
targets showed good development in 2022 when
both emission intensity and accident frequency
decreased from the previous year.
Significant structural
arrangements
Kauko and Vulganus, both deemed non-core
businesses, were divested in 2022. At the same
time, we focused on developing our key operations
through acquisitions, with the acquisition of Kobia
by Leipurin and Telko’s recent transactions being
the most significant. ESL Shipping also invested
in new Green Coaster vessels through a pooling
arrangement.
30% 27% 18%
700
600
500
400
300
200
100
0
60
50
40
30
20
10
0
18 19 20 21 22 18 19 20 21 22 18 19 20 21 22 18 19 20 21 2218 19 20 21 22
25
20
15
10
5
0
180
150
120
90
60
30
0
Sustainable value creation
Aspo creates value by owning and developing business operations sustainably and 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 950 professionals.
NET SALES
COMPARABLE
OPERATING PROFIT EMPLOYEES RETURN ON EQUITY GEARING
652.6 M€ 55.3 M€ 945 15.2% 108.4%
+ 11% + 30%
ASPO’S FINANCIAL TARGETS
KEY FIGURES
OPERATING PROFIT
8 %
ANNUAL NET SALES GROWTH
5–10 %
RETURN ON EQUITY GEARING
> 20 % < 130 %
1,000
800
600
400
200
0
GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONASPO YEAR 2022
4
ASPO’S YEAR 2022
355
ESL Shipping is the leading dry bulk cargo company in the
Baltic Sea region. ESL Shipping’s competitive edge is based on
its ability to secure product and raw material transportation
for industry and energy production year-round, even in difficult
weather conditions.
Telko is a leading distributor and solution provider for
converters and brand owners looking to safeguard
their business with future-proof plastics, chemicals or
lubricant solutions.
Leipurin operates as part of the food chain, acquiring raw
materials in global markets and from domestic companies,
and supplying them through its effective logistics chain
according to customer needs.
NET SALES
M€
COMPARABLE
OPERATING PROFIT M€
EMPLOYEES
SHARE OF GROUP’S
NET SALES %
245.4 37.4
+ 28% + 40%
38%
293267.4 20.8
- 1% -2%
41%
255130.6 3.3
+ 15% +74%
21%
GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONASPO YEAR 2022
5
ASPO’S YEAR 2022
ROLF JANSSON
Group CEO
A year of
major changes
■
CEO’S REVIEW
The year 2022 turned out to be highly different from
what we still assumed at the beginning of the year.
Already in spring, we decided to withdraw from all our
operations in Russia and other selected eastern mar-
kets due to Russia’s invasion of Ukraine.
The prerequisites for responsible business had been
eliminated, and it became clear that we would set our
sights even more firmly on western markets in accord-
ance with our strategy updated at the end of 2021.
We will continue to operate in Ukraine, and we want
to support its development and do our part to help
rebuild the country.
BUSINESS ARRANGEMENTS
AND STRATEGY EXECUTION
In addition to our withdrawal from eastern markets, we
also made other significant structural changes during
the year. In the summer, we divested Leipurin’s machin-
ery business Vulganus, and at the end of October,
the divestment of Kauko was finalized. At the same
time, in accordance with our compounder strategy,
we focused on developing our key operations through
acquisitions, with the acquisition of Kobia by Leipurin
and Telko’s recent transactions being the most signifi-
cant.
During the year, we also made strategic invest-
ments, the most important of which was ESL Ship-
ping’s decision to invest in new Green Coaster vessels
using a pooling arrangement.
WE ACHIEVED ALL OUR FINANCIAL TARGETS
In the light of financial key figures, 2022 was a
record-breaking year in many ways. Aspo Group’s net
sales increased to EUR 652.6 million, up by roughly
11% from the previous year. Our comparable operating
profit was a record EUR 55.3 million, and our compara-
ble operating profit rate was 8.5%. Both the increase
in net sales and our comparable operating profit
exceeded the financial targets set for the Group. Gear-
ing and return on equity also exceeded our targets.
The previous year was hard for our personnel in sev-
eral ways, and the war in Ukraine still touches the daily
lives of many of our employees. While the operating
environment remained challenging throughout the year,
we were able to achieve excellent financial results. I
would like to thank all our personnel for this perfor-
mance.
INVESTMENTS AND POSITIVE
DEVELOPMENT IN SUSTAINABILITY
Sustainability is an integral part of Aspo’s strategy.
Aspo’s businesses aim to be forerunners in sustainabil-
ity in their respective sectors. Sustainability also guides
Aspo’s management system and the process of inves-
tigating new investment objects.
Aspo’s key focus areas include reducing emission
intensity and improving occupational safety. These tar-
gets showed good development in 2022 when both
emission intensity and accident frequency decreased
from the previous year.
Achieving these ambitious targets also calls for
investments. The twelve energy-efficient electric hybrid
vessels ordered by ESL Shipping will strengthen its
competitiveness and market position in the future. The
shipping company will also continue the development
of a fossil-free sea transportation ecosystem in line
with the green transition and the vessels suitable for it
in cooperation with its key customers.
At the end of 2022, we deployed a new sustaina-
bility data reporting platform for all the Group’s busi-
nesses. The new reporting platform improves the effi-
ciency of the Group’s sustainability reporting and
makes it easier to verify data. Furthermore, it provides
each business and Aspo’s management with even bet-
ter tools for the management and monitoring of sus-
tainability activities.
STRONG FINANCES PLACE US IN AN
EXCELLENT POSITION FOR THE FUTURE
All our businesses have straightforward plans to
develop and grow their operations in the next few
years. ESL Shipping focuses on ESG-driven growth
with its key industrial partners. Telko compensates
for the discontinued operations in Russia and Belarus
through organic growth and acquisitions, while scalabil-
ity will remain the cornerstone of its success. Leipurin
will continue to improve its profitability, supported by
growth in selected segments.
We are heading to 2023 from a good position, and
we will continue the determined implementation of our
strategy. We continue to seek stronger organic growth
through business acquisitions in line with our strategy.
Rolf Jansson
Group CEO
GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONASPO YEAR 2022
6
ASPO’S YEAR 2022
Aspo creates value by owning and developing its busi-
nesses responsibly in the long term. The common goal
of the owned businesses is to be the market leaders
in their respective fields. The subsidiaries are responsi-
ble for their operations, customer relationships and their
development, aiming to reach a leading position in sus-
tainability in their own field. Aspo supports the success
and growth of its businesses through appropriate capa-
bilities.
Throughout Aspo’s more than 90-year history, cour-
age and people have been the defining characteristics
of operations. The Group is continuously investigating
new possibilities for structural changes that increase the
shareholder value. The premise for value creation is to
create growing and steady ability to generate results.
Such measures, which aim to produce more value,
may include the acquisition or sale of companies or busi-
nesses, the listing of businesses or other market oper-
ations. At the end of 2022, Aspo Group had business
operations in more than 15 different countries, and we
employed over 900 professionals.
PROGRESS ON MANY FRONTS
Aspo published its revised strategy at the end of 2021.
Accordingly, Aspo aims to achieve sustainable long-term
growth by reinvesting received profit in productive appli-
We continued the determined execution
of our compounder strategy
■
STRATEGY
cations and by taking steps towards a compounder pro-
file. Here, corporate arrangements are a key part of
value creation, and the aim is to create growth and an
income flow through them.
In 2022, we made good progress in our strategy exe-
cution. Leipurin completed a significant business trans-
action in September 2022 when it acquired all shares in
Kobia AB, a Swedish distribution company for the bak-
ery industry, from Swedish Abdon Group. Kobia’s net
sales more than compensate for the part of Leipurin’s
net sales eliminated due to the withdrawal from eastern
markets.
Telko completed acquisitions during the year: the
acquisition of the operations of the Norwegian company
Johan Steenks AS was published in the fall, and Telko
announced the acquisition of the Polish company Eltrex
at the beginning of this year. The decision to withdraw
from selected eastern markets as a result of Russia’s
invasion of Ukraine will temporarily reduce also Telko’s
net sales, but the aim is to compensate for its impact by
continuing acquisitions in western markets.
ESL Shipping took a significant strategic step forward
when it established a long-term Green Coaster pool for
energy-efficient electric hybrid vessels in August 2022
with an investor group consisting of institutional and pri-
vate investors. The pooling structure is a commonly used
practice in international shipping operations for the own-
ership and operation of vessels. The arrangement accel-
erates ESL Shipping’s operational growth and improves
its profitability and return on equity.
A DEVELOPING AND ACTIVE OWNER
Aspo enables growth for the businesses it owns, and
aims to improve their profitability and returns by devel-
oping them and ensuring steady cash flows. The goal
is to assume an active role in corporate arrangements
– both in growth investments in the current businesses
and in transactions.
As an owner, Aspo is responsible for the acquisition
and allocation of capital and for the investments in its
subsidiaries. Aspo’s structure also enables larger invest-
ments, which individual businesses might not be able to
afford.
SUSTAINABILITY GUIDES ASPO’S OPERATIONS
Sustainability is a key factor in guiding Aspo Group’s
management system and the process of investigating
new investment objects. Aspo’s businesses aim to be
forerunners in sustainability in their respective fields. In
support of the sustainability commitments, Aspo has
defined ESG targets for key parts of the Group and busi-
nesses. Aspo Group’s key target is to reduce emission
intensity by 30% by 2025. Another shared target for
the Group is to improve occupational safety, measured
by the development of accident frequency. Both targets
showed positive development during 2022.
A STRONG CASH FLOW ENABLES THE
EFFECTIVE USE OF CAPITAL MARKETS
The Group’s capital efficiency is also tightly linked to the
execution of Aspo’s strategy. Aspo’s high debt manage-
ment capacity, supported by its strong cash flow, ena-
bles the effective use of capital markets.
As part of its strategy, Aspo also takes care of its
capital structure so that the Group can develop its busi-
nesses with no predefined schedules. Aspo must always
have sufficient resources for operations and structural
arrangements that produce more value.
Aspo’s long-term financial targets
Operating profit 8%
Annual net sales growth 5–10%
Return on equity > 20%
Gearing < 130%
GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONASPO YEAR 2022
7
ASPO’S YEAR 2022
ESL Shipping’s competitive edge is based on its pioneer-
ing role and ability to responsibly secure product and raw
material transportation for industries and energy produc-
tion year-round, even in difficult conditions. The shipping
company loads and unloads large ocean liners at sea as
a special service.
ESL Shipping’s vessels mainly operate in contract traf-
fic in the Baltic Sea and in Northern Europe. Transporta-
tion operations in the Baltic Sea and the North Sea are
mostly based on long-term customer agreements and
established customer relationships.
STRONG FINANCIAL RESULTS
To provide flexible and reliable services for customers,
a sufficiently large and interchangeable fleet is required.
At the end of 2022, ESL Shipping had 41 vessel units in
use, with a deadweight tonnage of more than 425,000
tons. Of these vessels, 23 were wholly owned (80% of
the tonnage), two were minority owned, and the remain-
ing 16 were time chartered.
In 2022, ESL Shipping achieved excellent financial
results, enabled by high demand throughout the year
in the main market areas, the shipping company’s long-
term partnership strategy and the successful operations
of the onshore and offshore personnel.
To strengthen its position in the smaller vessel cate-
gory, ESL Shipping’s subsidiary AtoBatC ordered twelve
highly energy-efficient next-generation electric hybrid
vessels, every other of which will be sold to an investor
group within the scope of a pooling arrangement.
TARGETING FOR CARBON
NEUTRAL OPERATIONS
A key target in ESL Shipping’s strategy is to be a fore-
runner in sustainable shipping. The shipping company’s
target is to lead the way in technological solutions, sus-
tainability and service quality. The most important goal is
to reduce carbon intensity by 50% per ton-mile by 2030
and enable carbon neutral operations by 2050. During
2022, ESL Shipping transported a total of 14.7 million
tonnes of cargo, and its CO
2
emissions per transported
ton of cargo decreased by 7.5% from the previous year.
The shipping company’s roadmap for fossil-free ship-
ping consists of three parts. Vessels and powertrain
solutions, designed to be as efficient as possible, play a
key part. They enable the use of various fossil-free fuel
mixtures and, for example, the use of batteries in lower-
ing consumption peaks.
Reducing emissions in shipping calls for the produc-
tion of renewable fuels on an industrial scale, as their
availability is very limited at present. As a result, the
shipping company is preparing long-term cooperation
with leading energy suppliers to offer sea transportation
with even lower carbon emissions in the future.
Customers who share the common vision of low emis-
sion shipping make up the third element. A good exam-
ple of this is the Virtual Arrival trial started already in
2021, in which the aim is to further reduce emissions by
optimizing the arrival time at the port.
37.4
Comparable
operating profit
MEUR
A key target in
ESL Shipping’s strategy
is to be a pioneer in
sustainable shipping.
+ 40 %
The leading dry bulk cargo company
in the Baltic Sea region
245.4
Net sales
MEUR
+ 28 %
355
Personnel
ASPO YEAR 2022 GOVERNANCESUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONBUSINESSES
8
ASPO’S YEAR 2022
Pooling arrangement
accelerates the shipping
company’s growth
ESL Shipping established a long-term Green Coaster
pool for energy-efficient electric hybrid vessels in August
2022 with an investor group consisting of institutional
and private investors.
The pooling structure is a commonly used practice in
international shipping operations for the ownership and
operation of vessels. The established Green Coaster pool
accelerates ESL Shipping’s growth and improves its prof-
itability and return on equity. At the same time, the pool
marks the first stage in the shipping company’s new
low-carbon growth strategy based on investor funding
and the pooling model.
AtoBatC Shipping, ESL Shipping’s Swedish subsidiary,
acts as the manager of the pool, and all twelve upcom-
ing vessels will be part of the shipping company’s exist-
ing and growing contract traffic operations. Investors are
provided with end-to-end services for the construction
and maintenance of vessels following the turnkey princi-
■
CASE
ple. ESL Shipping’s total investment comprises six ves-
sels and roughly EUR 70 million.
The greenhouse gas emissions of the new vessels,
including CO
2
per transported unit of cargo, will be
almost 50% lower than those of current vessels, which
makes them the most energy-efficient in the world in
their size category. The vessels’ batteries, shore-side
electricity solutions and electric hybrid operation ena-
ble fully zero-emission and practically noiseless visits
to ports.
ESL Shipping has been closely engaged in the
design of the vessels and customized the vessels
according to customer needs. Special attention has
been paid to cargo bay arrangements and energy effi-
ciency. The first four of the vessels are already under
construction, with the first vessel to be delivered in the
fall of 2023.
ASPO YEAR 2022 GOVERNANCESUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONBUSINESSES
9
ASPO’S YEAR 2022
Telko is a leading distributor and solution provider for
converters and brand owners looking to safeguard their
business with future-proof plastics, chemicals or lubri-
cant solutions. This is done by using industry-leading
expertise, strong partnerships and renowned service
capabilities to improve Telko’s customers’ production
lead times, material efficiency, and financial and environ-
mental performance. Telko operates in 15 countries and
has sales in more than 30 countries.
MAJOR CHANGES IN THE
OPERATING ENVIRONMENT
Russia’s invasion of Ukraine had a significant impact on
Telko’s business operations and operating conditions in
eastern markets. The withdrawal decision was already
made in the spring and in October 2022, Telko signed a
binding preliminary agreement on selling all shares in its
subsidiary in Russia to a Russian industrial company. In
December, Telko finalized the preliminary agreement to
sell all shares in its subsidiary in Belarus to a member of
its current management. Both transactions still need to
be approved by the local authorities.
Despite the decreases in net sales and profitability in
Russia and other eastern markets towards the end of
the year, Telko’s comparable operating profit for 2022
remained close to the previous year’s record-high figures.
ACQUISITIONS AND SCALABILITY
In 2023, Telko’s net sales and results will be significantly
lower than in the previous year due to the changed situ-
ation in Russia, Belarus and Ukraine. In other countries,
demand is expected to remain moderate, even though
there will be differences between businesses.
In addition to organic growth, Telko will continue to
accelerate its growth through acquisitions. Telko will
also continue its activities to improve its operational effi-
ciency and scalability. In recent years, Telko has consist-
ently reduced the proportion of volume products in its
range and correspondingly increased that of specialty
products, as a result of which its tolerance of price fluc-
tuations is better than before.
DEVELOPMENT OF SUSTAINABILITY
ACTIVITIES CONTINUES
In 2021, Telko defined business-specific sustainability
targets, of which helping the entire value chain reduce
emission intensity is the most significant. Telko is cur-
rently preparing a progress plan for its indirect Scope
3 emissions. Good governance has given Telko a com-
petitive edge for years, especially in eastern markets. In
2022, Telko received EcoVadis’ gold level sustainability
certificate, and the company’s goal is to achieve the plat-
inum level no later than by 2025.
Telko closely complies with all environmental and
safety regulations and invests heavily in eco-friendly
alternative plastic raw materials. Telko’s environmental
protection practices are under constant development in
accordance with the principles of the ISO 9001 stand-
ard. In 2022, Telko received the ISO 14001 environmen-
tal certificate, covering all of its units in the EU. Industrial
sectors that use plastic raw materials require options for
conventional raw materials and seek to find eco-friendlier
solutions. In their R&D activities, major raw material pro-
ducers are investing heavily in alternative bio-based or
biodegradable materials.
In 2022, Telko received
EcoVadis’ gold level
sustainability certificate.
Accelerated growth
20.8
Comparable
operating profit
MEUR
–2 %
267.4
Net sales
MEUR
–1 %
293
Personnel
ASPO YEAR 2022 GOVERNANCESUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONBUSINESSES
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ASPO’S YEAR 2022
Telko’s compounder
strategy making progress
A key factor in Telko’s strategy is accelerating growth not only through organic growth,
but also through acquisitions. Acquisitions aim to increase Telko’s plastics, chemicals and
lubricants businesses and expand them to new geographical areas.
Telko’s acquisition of the operations of the Norwegian company Johan Steenks AS in
the fall of 2022 was an indication of the progress Telko’s compounder strategy is making.
Johan Steenks is a distributor of technical plastic raw materials and additives for plastics,
and it has an established customer base in the Norwegian markets and a number of well-
known principals. The company’s net sales are approximately EUR 5 million.
Corporate arrangements continued when Telko announced the acquisition of the Pol-
ish company Eltrex on January 31, 2023. Eltrex is a distributor of special chemicals and
industrial packaging materials, whose broad range includes raw materials for manufactur-
ers of industrial and floor coatings and home cleaning chemicals. Eltrex is a well-known
name in Poland, especially in the industrial coatings segment, and it represents several
global brands, including Allnex, Lanxess and Wanhua. The company is based in Goleszów
in Southern Poland.
The acquisition of Eltrex gives Telko access to chemicals markets in Poland and is a
significant step on the company’s growth path in Europe. Eltrex has annual net sales of
approximately EUR 8 million, and its operating profit is slightly less than EUR 1 million.
The decision to withdraw from selected eastern markets as a result of Russia’s invasion
of Ukraine will temporarily reduce Telko’s net sales, but the aim is to compensate for its
impact by continuing acquisitions in western markets.
■
CASE
ASPO YEAR 2022 GOVERNANCESUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONBUSINESSES
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ASPO’S YEAR 2022
Leipurin operates as part of the food chain, acquiring
raw materials in global markets and domestic companies
and supplying them through its effective logistics chain
according to customer needs. Leipurin operates in nine
countries.
Leipurin serves bakery, food industry and foodservice
customers by providing raw materials and by supporting
research and development and recipes for new products.
Its other product categories include various supplies
and machines for the same customer segments. Leipu-
rin uses leading international manufacturers as its raw
material and machinery supply partners.
SIGHTS SET ON WESTERN MARKETS
The war in Ukraine and the decision to withdraw oper-
ations from markets in Russia, Belarus and Kazakhstan
have a significant impact on Leipurin’s operations. The
divestment of the operations in the eastern markets still
needs to be approved by the local authorities, and Leipu-
rin expects the transaction to be completed during the
first half of 2023, even though this still involves uncer-
tainties.
Throughout the year, Leipurin’s operations were
affected by the restrictions in eastern markets due to
Russia’s invasion of Ukraine, the high price inflation in
global raw material markets, and challenges related to
the availability of raw materials.
The company also took significant steps forward dur-
ing the year. The expansion to Swedish markets as a
result of the acquisition of Kobia announced in the sum-
mer of 2022 increases Leipurin’s net sales significantly
and produces synergy benefits in areas such as supply
chain management and the development of the product
range.
In 2022, Leipurin’s net sales and profitability
improved from the previous year. The steep increase in
raw material prices in global markets had a significant
impact on the increase in sales.
FOCUS ON CORE OPERATIONS AND
IMPROVING PROFITABILITY
In the summer, Leipurin completed the divestment of its
machine business Vulganus to KÖNIG Maschinen GmbH,
the leading bakery machine manufacturer in Austria. Vul-
ganus manufactures and maintains refrigeration and
freezing solutions for the food industry through its spi-
ral products. Vulganus had previously been defined as a
company outside core operations, and the investigation
of strategic options had been started.
Leipurin has defined new sustainability goals for its
operations in line with Aspo’s sustainability themes. The
five pillars of Leipurin’s sustainability cover the entire
food chain, from nature and fields all the way to consum-
ers’ tables.
Miska Kuusela started as Leipurin’s new CEO on Jan-
uary 2, 2023. He transferred to Leipurin Group from the
position of Myllyn Paras Finland Oy’s CEO. Kuusela has
extensive experience in executive positions in the food
industry, and he previously worked as the CEO of Dava
Foods Finland Oy and Helsingin Mylly. Under Kuusela’s
leadership, Leipurin will continue to focus on selected
growth clusters and improving its operational efficiency.
Leipurin took significant
steps forward during the
year.
Towards full potential
3.3
Comparable
operating profit
MEUR
+74 %
130.6
Net sales
MEUR
+15 %
255
Personnel
ASPO YEAR 2022 GOVERNANCESUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONBUSINESSES
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ASPO’S YEAR 2022
The acquisition of Kobia
opens up new markets
Leipurin completed a significant business transaction in
September 2022 when it acquired all shares in Kobia AB,
a Swedish distribution company for the bakery industry,
from Swedish Abdon Group.
Bakery markets and consumer product ranges in Fin-
land and Sweden are similar in many ways. In addition, the
expertise of Leipurin and Kobia in customer segments and
categories creates synergies by offering opportunities for
cross-sales and operational development throughout the
Baltic Sea region.
The expansion to Sweden through the acquisition of
Kobia will increase Leipurin’s annual net sales by roughly
EUR 50 million and create considerable synergies in the
development of the product range and in the supply chain
and procurement. It also enables partners to be served in
”Kobia’s acquisition excellently supports
our growth strategy, driven by acquisi-
tions, and significantly increases Aspo
Group’s net sales in western markets”
Rolf Jansson
CEO of Aspo Group
■
CASE
a larger geographic area. Furthermore, Kobia’s net sales
more than compensate for the part of Leipurin’s net sales
eliminated due to the exit from eastern markets.
For Aspo, this project marked an acquisition in west-
ern markets that consolidated the markets in line with
its new strategy. As a result of the transaction, the com-
pany will have significant opportunities for creating value
through the development of operations, the supply chain
and procurement. Kobia’s integration and value creation
have been merged into Leipurin’s ongoing performance
improvement program to develop a shared management
system. The integration of the operations of Leipurin and
Kobia has proceeded as planned after the approval of the
transaction.
ASPO YEAR 2022 GOVERNANCESUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONBUSINESSES
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ASPO’S YEAR 2022
Aspo
sustainability report
2022
Socially, financially and environmentally sustainable
business is a requirement for creating long-term value.
A responsibly led growing company can create jobs,
tax revenues and wellbeing.
Year 2022:
Development on many fronts
Aspo’s key focus areas include reducing emission intensity and im-
proving occupational safety. These targets showed good develop-
ment in 2022 when both emission intensity and accident frequency
decreased from the previous year.
In 2022, we continued to develop Aspo’s sustainability program on
several fronts. For example, we prepared a new sustainability policy
and integrated the Group’s sustainability targets into Aspo’s remu-
neration scheme. We also invested in a new Group-wide sustainabili-
ty reporting platform.
Zero tolerance for corruption
Aspo’s Code of Conduct prohibits corruption and
bribery in all their forms. Aspo’s Code of Conduct and
Compliance trainings include anti-corruption issues
and provide guidance for identifying any suspicious
situations and practices considered unethical.
2021: 0.42
2021: 8.8
INJURY FREQUENCY RATE
TRIF
8.1
SHARE OF ASPO’S EMPLOYEES WHO
COMPLETED THE TRAININGS IN 2022
10 0 % 10 0 %
Code of Conduct Compliance
CARBON INTENSITY
CO
2
(tn) / net sales (t€)
0.33
ASPO YEAR 2022 GOVERNANCEBUSINESSES MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONSUSTAINABILITY
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ASPO’S YEAR 2022
A year of changes and development
■
SUSTAINABILITY
Changes in the operating environment or our renewed strategy did not have an
impact on our long-term targets for sustainability: Aspo’s businesses still aim to be
forerunners in sustainability in their respective sectors.
The year 2022 turned out to be highly different from
what we still assumed at the beginning of the year. Rus-
sia’s invasion of Ukraine dramatically changed the lives
of many of our employees, and our entire operating envi-
ronment turned upside down.
As a result of Russia’s invasion, we decided to with-
draw from Russia and selected eastern markets and
focus on seeking growth and profitability especially in
western markets in accordance with our renewed strat-
egy.
However, the changes in the operating environment
or our new strategy did not have an impact on our long-
term targets for sustainability: Aspo’s businesses still
aim to be forerunners in sustainability in their respective
sectors. Sustainability also guides Aspo’s management
system and the process of investigating new investment
opportunities. In 2023, we will continue to develop and
deploy environmental, social and corporate governance
(ESG) evaluation criteria for potential acquisitions.
Aspo’s different businesses naturally have highly dif-
ferent focus areas in their sustainability work. ESL Ship-
ping has actively reduced its environmental footprint by
ASPO YEAR 2022 GOVERNANCEBUSINESSES MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONSUSTAINABILITY
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ASPO’S YEAR 2022
bringing down its fleet’s emissions and energy consump-
tion. Product safety is essential for Telko, which acts as
a link between industrial customers and international raw
material manufacturers. The operations of Leipurin focus
not only on product safety, but also on the reduction of
waste and wastage.
The businesses also have several common targets.
Key focus areas for the Group include reducing emis-
sion intensity and improving occupational safety. These
targets showed good development in 2022 when both
emission intensity and the accident frequency decreased
from the previous year. In terms of environmental
responsibility, we are rapidly approaching the target set
for 2025 to reduce emission intensity by 30% from the
level of 2020. The energy-efficient electric hybrid ves-
sels ordered by ESL Shipping, the first of which will be
deployed in fall 2023, will play a significant role in reduc-
ing emission intensity in the future.
Even though accident frequency decreased in 2022,
we did not quite reach the target set for the year. We
still have a lot of work ahead of us in developing our
occupational safety culture, but we took several steps
forward in 2022 in increasing safety awareness and
ensuring the reliability of data.
It was delightful that during the year approximately
100% of the Group’s all employees completed Code of
Conduct and Compliance trainings which include anti-cor-
ruption issues and provide guidance for identifying any
suspicious situations and practices considered unethical.
In 2022, we continued to develop Aspo’s sustainabil-
ity program on several fronts. For example, we prepared
a new sustainability policy and integrated the Group’s
sustainability targets into Aspo’s remuneration scheme.
We also invested in a new Group-wide sustainability
reporting platform, which we believe will develop the
reporting capabilities of our businesses and intensify the
monitoring of goals. In addition, we continued to investi-
gate the impact of the EU taxonomy for sustainable eco-
nomic activities on the Group’s businesses and report-
ing practices. More information about the alignment of
the Group’s businesses with the taxonomy is availa-
ble in Aspo’s Management report. We have also started
our preparations for the EU’s Corporate Sustainability
Reporting Directive.
Since 2018, Aspo has been a member of the UN’s
Global Compact initiative, and the Group’s operations
are steered by the ten Global Compact principles related
to human rights, working life principles, the environ-
ment and the prevention of corruption. Every year, Aspo
reports its progress in the implementation of the Global
Compact principles as part of this Sustainability Report
and also on the external online platform managed by the
UN Global Compact, in accordance with the new stand-
ardized reporting system entered into force on January
1, 2023.
In addition to this Sustainability Report, ESL Shipping,
Telko and Leipurin will also publish their own sustainabil-
ity reports, reviewing the long-term goals of each busi-
ness in more detail and discussing their progress in sus-
tainability in 2022.
Helsinki, Wednesday, February 15, 2023
Aspo Plc
Board of Directors CEO
The UN’s Sustainable Development
Goals that have been defined to be
the most significant for Aspo and
as goals on which Aspo can have
the most impact.
• Growing our business while
lowering pressure to the
environment
• Improving the Aspo experience
for people in our value chain
• Driving sound governance
practices at all levels
Aspo and its businesses
share the following
sustainability commitments:
ASPO YEAR 2022 GOVERNANCEBUSINESSES MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONSUSTAINABILITY
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ASPO’S YEAR 2022
E S G
Aspo Group
key sustainability themes
■
SUSTAINABILITY
Growing our business while lowering
pressure to the environment
OUR AMBITION
OUR COMMITMENTS/
KEY FOCUS AREAS
MATERIAL THEMES
FOR ALL BUSINESSES
To reduce emission intensity
Ensuring employee safety Sound governance practices
Driving sustainable innovations
Improving the employee, customer
and principal experience
Thorough risk management
Improving recycling and
waste management
Enhancing product
and service quality
Continuous development
of the Sustainability program
Aspo portfolio companies aim to be sustainability forerunners in their industries
Improving the Aspo experience for
people in our value chain
Driving sound governance
practices at all levels
ASPO YEAR 2022 GOVERNANCEBUSINESSES MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONSUSTAINABILITY
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ASPO’S YEAR 2022
Investments for the good
of the environment
■
ENVIRONMENTAL RESPONSIBILITY
Growing our business while lowering pressure to the environment
requires concrete actions and investments.
The key target related to the Group’s environmental
responsibility is to reduce emission intensity, CO
2
(tn) per
net sales (EUR thousand), by 30% by 2025. In 2022,
emission intensity improved, being 0.33 (0.42 in 2021).
This positive trend resulted particularly from the growing
businesses and ESL Shipping’s new operating models,
operational efficiency and transport structure.
A more effective use of energy and raw materi-
als plays a key role in reducing Aspo’s environmental
impact. As ESL Shipping’s vessels generate the majority
of the Group’s carbon dioxide emissions, the most sig-
nificant environmental aspects for the shipping company
are related to the improved energy efficiency and the
reduced carbon footprint of its fleet.
LEADING THE WAY IN SUSTAINABLE
SHIPPING OPERATIONS
ESL Shipping’s goal is to halve its carbon dioxide emis-
sions per transportation unit by the end of the decade.
Achieving this target calls for significant investments in
new vessels, fuel solutions and other operating mod-
els to improve energy efficiency. Progress can already be
seen in various areas. During 2022, ESL Shipping trans-
ported 14.7 million tons of cargo and consumed 819
988 (898 158) MWh of energy. CO
2
emissions per trans-
ported ton of cargo decreased by 7.5% in 2022.
In 2021, ESL Shipping announced its plan to build a
series of six highly energy-efficient electric hybrid ves-
sels to strengthen its leading position in the sector, and
in 2022, the order for the world’s most efficient ves-
sels in their size category was doubled after a new ship-
ping pool was established. The greenhouse gas emis-
sions of the new vessels per transported unit of cargo
will be nearly 50% lower compared with the current ves-
sels. The construction of the first Green Coaster vessels
is currently underway, and the first vessel will be deliv-
ered to ESL Shipping during the third quarter of 2023.
The shipping company’s building supervisors are monitor-
ing the construction of the vessels at the shipyard.
LOWERING CARBON INTENSITY
CO
2
(tn) / Net sales (t€)
IMPROVING RECYCLING AND WASTE MANAGEMENT
Business-specific targets have been set for recycling and waste management.
DRIVING SUSTAINABLE INNOVATIONS
Business-specific development of sustainable innovations.
In 2022, carbon intensity improved further due to increase in
net sales, operational efficiency and new operating models.
0.39 0.33
Target 2022 Notable SDG
0.42
Total 2022 2021
E
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ASPO’S YEAR 2022
Progress was also seen in the deployment of new
fuel solutions. In summer 2022, ESL Shipping became
the first shipping company in the world to start using
the new low-emission Neste Marine™ 0.1 Co-processed
ship fuel in its vessels in Finland and Sweden. The ISCC
Plus-certified co-processed ship fuel reduces greenhouse
gas emissions by as much as 80% during its lifecycle
compared to fossil fuels, without compromising on prod-
uct quality or performance.
Virtual Arrival launched by ESL Shipping in summer
2021 is still used successfully in transportation between
Luleå and Oxelösund in cooperation with SSAB and the
Port of Oxelösund. The idea of Virtual Arrival is to reduce
a ship’s speed if it is known that its berth at the port will
not be available upon arrival. Regardless of the actual
arrival time, a ship’s position in the port’s line-up is deter-
mined based on the arrival time calculated using the nor-
mal service speed. Energy savings have been significant:
the carbon dioxide emissions of sea transportation have
decreased by up to 24% as a result of the optimized ser-
vice speed. The energy savings equal the annual con-
sumption of roughly 200 Finnish households.
In addition to environmental benefits, Virtual Arrival
provides ports with better opportunities to set more reli-
able schedules and use resources more effectively. When
schedules are better known, workday planning on board
ships will be more proactive. Virtual Arrival has been
selected by one of the traffic control and management
company Finntraffic’s leading projects for 2023, and it
also participated in the UN Climate Change Conference in
Egypt as a Green Shipping Challenge project.
We will continue our development by modernizing our
fleet and deploying new non-fossil fuels. Playing a sig-
nificant role in the zero-emission transportation of our
industrial partners’ zero-emission products is the corner-
stone of our shipping company’s strategy.
TOTAL IMPACT OF THE SUPPLY CHAIN
ON THE ENVIRONMENT IS KEY
The largest environmental impact of Leipurin and Telko,
which operate in the fields of trade and logistics, come
from elsewhere in the supply chain. As defined by Aspo’s
Board of Directors, the goal of these companies is to be
the best and the most responsible partners for their cus-
tomers and principals in their respective fields and to
reduce emissions in the entire supply chain through their
expertise. This includes planning logistics flows effec-
tively and ensuring the quality of products. In the next
few years, we aim to understand the environmental
impact of our entire supply chain even better, regardless
of who carries out the operations in question.
Telko is playing its part in improving the circular econ-
omy involving plastics and is providing its customers
with environmentally sustainable solutions. For example,
Telko was the first Finnish distributor to receive the ISCC
Plus certificate. ISCC Plus is a certificate granted for bio-
based plastics. Accordingly, Telko can provide plastic raw
materials produced in line with mass balance principles
for its customers.
RISKS ARE MANAGED
IN VARIOUS WAYS
Aspo has classified environmental damage resulting
from its operations and especially from fuel processing
in the shipping company’s operations and the practices
of its partners, for example, in the transport and stor-
age of chemicals as significant risks associated with the
environment. Changing regulations, such as stricter envi-
ronmental laws, any changes in energy policies and the
development of fuel taxation, can also have a significant
impact on operating conditions and costs.
Aspo actively monitors the regulatory situation and
aims to develop its operations cost-effectively and at the
correct time so that it can keep any investment needs
resulting from changing regulations under control. The
investigation of the EU’s classification system for envi-
ronmentally sustainable economic activities (EU tax-
onomy) on the Group’s businesses and reporting prac-
tices started in 2021 and continued in 2022. In order to
address environmental aspects in supply chains, Aspo
has prepared the Supplier Code of Conduct.
Aspo prepares for and controls risks through produc-
tive environmental management. For example, ESL Ship-
ping has its own environmental management system,
certified by ISO 140001. In 2022, ESL Shipping regis-
tered three (2021: 3) minor oil spills. As a result of these
incidents, slightly less than 20 liters of oil were released
into the environment. These were handled properly and
resulted in no consequences from the authorities.
Telko’s environmental protection practices are under
constant development in accordance with the princi-
ples of the ISO 9001 standard. In 2022, Telko received
the ISO 14001 environmental certificate, covering all
of its units in the EU. In addition, Telko is a member of
the Responsible Care program for chemical distributors,
which guides operational development to be more exten-
sive than the minimum requirements set out in acts and
regulations.
In 2022, the ISO 14001 environmental certificate was
also granted for Leipurin’s operations in Sweden (Kobia
AB) which helps control environmental risks. Leipurin is
investigating opportunities to deploy the certificate more
broadly.
In the next few years,
we aim to understand
the environmental impact
of our entire supply chain
even better.
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ASPO’S YEAR 2022
Fuel innovations reduce
shipping emissions
”We have waited for this co-processed ship
fuel for a long time. ESL Shipping is committed
to leading the way in reducing greenhouse gas
emissions in the shipping industry, and we are
fortunate to be able to use this low-emission
option without needing to modify our vessels.
We believe that this is the right way to go,
and I am convinced that, here in the Nordic
countries, we can act as an example for the
global shipping industry”.
Mikki Koskinen
Managing Director of ESL Shipping
ESL Shipping is actively developing more efficient and
ecological transportation solutions for the future. Select-
ing the correct fuel for vessels is an important part of this
development during this era of stricter environmental reg-
ulations.
Various factors need to be addressed in the design of
the best possible vessels for the environment. A key area
is finding the optimal dimensions and hydrodynamic solu-
tions to minimize water resistance. The currently availa-
ble fuel options and future fuel innovations are other sig-
nificant factors.
ESL Shipping operates two 25,500 dwt dry bulk cargo
vessels fueled by liquefied natural gas (LNG) – Viikki and
Haaga. The use of LNG as the primary fuel in main and
auxiliary engines reduces carbon dioxide emissions by
more than 50% compared to the previous generation’s
vessels. Another advantage of LNG-fueled engines is that
liquefied biogas (LBG) can also be used as fuel to reduce
vessel emissions even further. In addition, the high-pres-
sure engines selected for Viikki and Haaga reduce their
methane emissions down to a minimum.
In summer 2022, ESL Shipping became the first ship-
ping company in the world to use the new low-emission
Neste Marine™ 0.1 Co-processed ship fuel in its vessels.
The ISCC Plus-certified co-processed ship fuel reduces
greenhouse gas emissions by as much as 80% during
its lifecycle compared to fossil fuels, without making any
compromises over product quality and performance.
The highly environmentally friendly electric hybrid ves-
sels ordered in 2021 and 2022 will improve the ship-
ping company’s energy efficiency even further. The ves-
sels’ batteries, shore-side electricity solutions and electric
hybrid operation enable fully emission-free and practically
noiseless visits to ports. The construction of the Green
Coaster vessels is currently underway, and the first of the
12 ordered vessels will be delivered to ESL Shipping dur-
ing the third quarter of 2023.
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ASPO’S YEAR 2022
A year shadowed by the war
■
SOCIAL RESPONSIBILITY
Aspo’s operating environment changed dramatically when Russia invaded
Ukraine, and the war still touches the daily lives of many of our employees.
ENSURING EMPLOYEE SAFETY
Total Recordable Injury Frequency (TRIF)
IMPROVING THE EMPLOYEE, CUSTOMER AND PRINCIPAL EXPERIENCE
Employee satisfaction is measured by the People Power index
PRODUCT AND SERVICE QUALITY
Business-specific targets have been set to ensure the quality of products and services.
The net promoter score is used in each business.
Accident rates remain low. Each individual accident significantly
affects the TRIF figure.
In 2022, the operating environment remained fairly challenging
in all businesses, and job satisfaction decreased slightly,
while still being high.
7.0
AA+
8.1
AA
Target 2022
Target 2022
Note
Note
SDG
SDG
8.8
AA+
Total 2022
Total 2022
2021
2021
The year 2022 was hard for our personnel in several
ways, and the war in Ukraine still touches the daily lives
of many of our employees. When the war broke out, our
top priority was ensuring the safety of our personnel and
helping them in Ukraine and its neighboring areas.
Aspo is committed to respecting internationally
accepted human rights as defined in the Universal Dec-
laration of Human Rights and the UN Guiding Principles
on Business and Human Rights. We reject any discrim-
ination based on education, competence, position, per-
sonality, way of life, work experience, ethnic origin, reli-
gion, gender, sexual orientation, age, nationality, abilities
or other qualities.
Aspo treats its employees in a just and equal man-
ner in all countries where it operates. The applica-
ble local legislation and regulations are complied with
in all contracts of employment. These concern, among
other things, working hours, remuneration, development
opportunities, human rights and working conditions.
We aim to improve the personnel’s engagement and
wellbeing at work by promoting employees’ professional
development at all organizational levels and by building
an encouraging atmosphere.
INVESTING EVEN MORE IN
OCCUPATIONAL SAFETY
The most significant social risks are associated with
occupational safety and health, and the availability
and commitment of the personnel. At Aspo, work envi-
ronments range from cargo vessels to chemical ware-
houses, and specific focus is placed on safety guide-
lines and training in different businesses. The goal is that
there are zero occupational accidents.
In 2022, the total recordable injury frequency (TRIF)
was 8.1. While it showed positive development from
the previous year (8.8), we were unable to achieve our
goal of 7.0 set for 2022. Aspo has several ongoing pro-
jects to improve occupational safety and health, focusing
S
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ASPO’S YEAR 2022
especially on ESL Shipping’s operations, in which occupa-
tional accident risks are higher than in our other subsidi-
aries. Telko also adopted a new Safety Walk policy at its
offices and warehouses to increase safety and aware-
ness of it.
JOB SATISFACTION AT A HIGH LEVEL
Aspo regularly assesses the satisfaction of employees
with their own tasks, the quality of management, and
Aspo as an employer by conducting an annual atmos-
phere survey. In 2021, Aspo started to use the People
Power index, a new method of measuring job satisfac-
tion, and it was also included in the Group’s sustainabil-
ity goals. The operating environment remained fairly chal-
lenging in all businesses, and job satisfaction decreased
slightly, while still being high: the Group achieved the rat-
ing of AA in 2022, and there were no significant differ-
ences between the businesses. However, the targeted
level of AA+ was not achieved unlike in 2021.
In addition to employees, Aspo Group also monitors
the satisfaction of other stakeholders actively, and it has
set business-specific goals to ensure the quality of prod-
ucts and services. The businesses regularly monitor the
satisfaction of stakeholders and the likelihood that they
would recommend each business to others using the net
promoter score (NPS), a broadly used international mar-
ket research metric. The NPS surveys conducted in 2022
showed that customer satisfaction is at least at a high
level in all businesses.
Last spring, Russia’s armed invasion of Ukraine dra-
matically changed the lives of people living in Ukraine.
Millions were forced to leave their home, work and
familiar living environment. Of Aspo Group’s compa-
nies, Leipurin and Telko had some 60 employees in
Kyiv and Lviv during Russia’s invasion.
When the war broke out, some of the warehouses
of Leipurin and Telko were destroyed in Ukraine, but
there were no casualties. The destruction of the ware-
houses quickly put a stop to business operations in
the region. Telko and Leipurin have continued to pay
wages to their Ukrainian employees during the war.
“We collected information from our employees in
Ukraine, started to consider the need for concrete
assistance, and established an intragroup crisis team
to exchange daily information and delegate practical
matters,” says Myllyluoma about the coordination of
assistance.
While some employees of Leipurin and Telko were
relocated to western parts of the country, others
escaped to neighboring Poland and Romania. Telko
has business operations and employees in these coun-
tries which made it easier to provide rental homes,
furniture, clothing and acute food products.
“In our crisis team consisting of our local employ-
ees, someone was always ready to transport refu-
gees from the border to our leased accommodation
facilities in Poland and Romania. Our assistance cov-
ered not only families, but also the closest relatives.
As men were not usually allowed to leave Ukraine, we
took care of matters on behalf of their spouses and
families,” says Myllyluoma.
Throughout the challenging year, Telko has also
aimed to support local industry in the availability of
raw and other materials. Despite the difficult condi-
tions in Ukraine, certain industrial segments have been
able to continue their operations, and Telko has con-
tinued to serve its partners by developing new logis-
tics solutions that take the obstacles presented by
the war into account.
Aspo’s businesses will continue to operate in
Ukraine, and we want to support its development and
do our part to help rebuild the country.
Our employees giving
support during the crisis
”Russia’s invasion in Ukraine
deeply shocked our personnel in
Finland, Europe and other parts of
the world. We immediately started
to discuss the situation during our
personnel briefings, and it was
clear from the start that we will
do everything we can to help our
Ukrainian colleagues”
Eveliina Myllyluoma
HR Business Partner at Telko
ASPO YEAR 2022 GOVERNANCEBUSINESSES MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONSUSTAINABILITY
23
ASPO’S YEAR 2022
Responsible decisions
on the future of our businesses
■
CORPORATE GOVERNANCE
To promote the development of sustainability throughout the Group,
Aspo established a new sustainability task force at the beginning of the year,
headed by Aspo’s new Director of Sustainability.
SOUND GOVERNANCE PRACTICES
Percentage of Aspo’s personnel who completed the Code of Conduct & Compliance trainings
CONTINOUS DEVELOPMENT OF THE SUSTAINABILITY PROGRAM
For example the integration of ESG targets to personnel incentive system group-wide in 2022.
THOROUGH RISK MANAGEMENT
Further development of systematic risk management process together with portfolio companies.
Code of Conduct & Compliance trainings were renewed during 2022.
100% 100%
Target 2022 Note SDG
88 %
Total 2022 2021
In 2022, Russia’s invasion of Ukraine largely defined
Aspo’s operating environment and the dramatic changes
in it. We already decided in spring to withdraw from Rus-
sia and selected eastern markets after the preconditions
for responsible business ceased to exist. Binding prelim-
inary agreements have been made on the divestment of
Telko’s companies in Russia and Belarus and Leipurin’s
companies in Russia, Belarus and Kazakhstan, but they
are still waiting for the approval of the local authorities.
Aspo’s Code of Conduct, and HR management and
development principles guide the Group’s operations as
a responsible employer. Aspo respects the freedom of
association of employees and complies with local laws in
each operating country. In emerging markets, in particu-
lar, Aspo aims to lead the way and spread sustainable
operating methods.
To promote the development of sustainability
throughout the Group, Aspo established a sustainability
task force at the beginning of the year, headed by Aspo’s
new Director of Sustainability. The team’s goal is to coor-
dinate sustainability activities in the Group, and develop
and share best practices in all businesses.
CORRUPTION REMAINS A CHALLENGE
IN CERTAIN OPERATING COUNTRIES
As an international company, Aspo also operates in
countries in which corruption is common. According to
Transparency International, these include Russia, Uzbek-
istan and Ukraine. A key tool in the prevention of corrup-
tion and bribery is the responsible management of the
supply chain. To ensure appropriate operating methods,
Aspo’s businesses monitor compliance with the Supplier
Code of Conduct in various ways. For example, specific
responsibility audits have been conducted at Telko since
2019. Warehouse audits conducted in partners’ facilities
are also part of Telko’s toolkit to verify the compliance
of its supply chain with regulations. In addition to on-site
audits, a larger group of suppliers is monitored through
self-assessment. In 2022, several of Telko’s warehouses
were audited without finding any significant deficiencies.
G
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24
ASPO’S YEAR 2022
TARGET MAPPING ACQUISITION PROCESS OWNERSHIP
OUR APPROACH
We evaluate potential targets based on financial
performance and strategic fit
Sustainability forms an integral part of the
strategic fit –evaluation
We deepen our understanding of the financial
performance and strategic direction
Sustainability is evaluated both in terms of
evaluating
· Target performance across Aspo’s
key sustainability themes
· Impact on Aspo’s opportunity
to reach set KPI targets
The evaluation may result in us not investing in
a company
We develop a sustainability strategy, incl. priority
areas, together with the acquired company
We set targets, define key actions, and monitor
results – we provide active support from the
group where needed
We are committed to progress reporting to Aspo
board and shareholders
SUSTAINABILITY TO FORM AN INTEGRAL PART OF OUR ACQUISITION PROCESS AND OWNERSHIP AGENDA
Aspo’s Code of Conduct absolutely prohibits corrup-
tion and bribery in all their forms. Aspo’s Compliance and
Code of Conduct training includes anti-corruption issues
and provides guidance for identifying any suspicious situ-
ations and practices considered unethical.
In 2022, 100% of the Group’s employees completed
Code of Conduct training and 100% completed Compli-
ance training. Aspo’s goal is that all of the Group’s per-
sonnel complete the training every year.
MONITORING COMPLIANCE WITH
REQUIREMENTS IN VARIOUS WAYS
Aspo’s businesses are also monitoring sector-specific
regulations and Telko, for example, uses more detailed
guidelines for bribery, and it complies with the FECC’s
Code of Conduct. In addition, ESL Shipping, Telko and
Leipurin conduct risk assessments for suppliers. Leipurin
continued to develop its internal guidance and training
for compliance in 2022 to sharpen its practices related
to the prevention of corruption and bribery.
Product safety is key in the operations of both Telko
and Leipurin. Non-conformities in quality and deliveries
of incorrect products may have severe consequences.
In 2022, no incorrect products were delivered to Telko’s
customers. Leipurin’s raw material sales in Finland have
the ISO 22000 food safety certificate, and the BRC
Food Safety certificate has been granted for produc-
tion and the BRC Storage and Distribution certificate for
warehousing in Sweden.
Significant numbers of the partners of ESL Shipping,
Telko and Leipurin are important international compa-
nies, with which each of these businesses have been
engaged in long-term cooperation and which have their
own stabilized processes for the responsible manage-
ment of supply chains. Aspo’s Internal Audit and Legal
Affairs departments also conduct regular audits within
all businesses.
MISUSE CAN BE REPORTED ANONYMOUSLY
Since 2020, Aspo has been using a fully anonymous
whistleblowing channel maintained by an external party.
Through the service, employees can express their con-
cerns over anything that is non-compliant with Aspo
Group’s values or Code of Conduct and may have seri-
ous consequences for our organization or individu-
als. Reports are forwarded to the whistleblowing chan-
nel team, led by the Group’s Director of Legal Affairs.
Reports are processed in accordance with a fixed pro-
cess and forwarded to Aspo’s Board of Directors, which
will also process them if necessary. Employees are noti-
fied of the whistleblowing channel, for example, in con-
junction with annual Code of Conduct training.
A total of 14 reports were submitted through the
whistleblowing channel in 2022. These reports were pro-
cessed and responded to in accordance with the Group’s
processes. The reports were mainly related to minor vio-
lations of internal policies. No new cases of fraud were
discovered in the investigations conducted, and no con-
firmed violations related to corruption or bribery were
reported through the whistleblowing channel.
Aspo also has a broad impact on the communities in
which it operates. For example, ESL Shipping is a signifi-
cant organizer of maritime transport and plays a key role
in Finland’s emergency supply, because maritime trans-
port accounts for 80% of Finland’s imports and 90% of
its exports. In the event of a crisis, vessels operating
under the Finnish flag safeguard connections to other
countries.
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ASPO’S YEAR 2022
Steps towards comprehensive
sustainability reporting
”The new reporting platform has successfully
been launched in all our businesses, and
it provides the management of Aspo and
each business with even better tools to lead
and monitor sustainability activities. The
deployment is also part of our preparation for
the obligations set out in the new corporate
sustainability reporting directive”
Anni Lapatto
Corporate Development Manager at Aspo Group
Year by year, more local and international regulations have been
directed at sustainability reporting by companies. The EU corporate
sustainability reporting directive to enter into force in 2024 will be
one of the most significant changes.
Its goal is to provide stakeholders of companies with reliable and
verified information about the sustainability risks to which companies
are exposed and how companies comply with the principles of sus-
tainable development in their operations. European reporting stand-
ards will ensure the availability of the information required for sus-
tainable funding and the reporting of comparable information. Stat-
utory sustainability reporting will also apply to Aspo, and the Group
has already started preparations for the new practices.
During 2021, Aspo already completed a large-scale process to set
sustainability goals for each business. The next significant step was
taken at the end of 2022 when Aspo deployed a new reporting plat-
form for sustainability data for all its businesses. The new reporting
platform improves the efficiency of the Group’s sustainability report-
ing, and it will also make it easier for external partners to verify data
in the coming years.
External parties have also identified the development steps
Aspo’s businesses have taken. In 2022, EcoVadis gave Telko the
gold-level sustainability rating. EcoVadis is one of the world’s largest
and most reliable providers of corporate sustainability assessments.
Every year, it assesses companies’ sustainability activities based
on the environment, labor and human rights, ethics, and sustaina-
ble procurement. Telko’s original goal set at the end of 2021 was to
receive the gold rating in the 2023 assessment. This goal was now
achieved one year ahead of schedule. ESL Shipping participated in
the EcoVadis sustainability certification for the first time in 2022 and
received the silver rating, which is only received by 10% of compa-
nies in the industry.
The significance of sustainability in assessing investment deci-
sions has increased considerably during the last few years, and
there are several providers of independent sustainability assess-
ments. Assessments of the level of Aspo’s sustainability activities by
these bodies have also shown positive development. For example,
in 2022, Aspo reached the low risk category status in the Sustainal-
ytics assessment, rising to a better category from the previous year.
In addition, Nasdaq again designated Aspo as a Nasdaq ESG Trans-
parency Partner in 2022. The recognition is given to companies that
communicate ESG themes related to sustainability transparently to
their customers and investors.
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ASPO’S YEAR 2022
■
THE USE OF ENERGY AND EMISSIONS
ESL Shipping
2
2022 2021 2020 2019 2018
Purchased energy
1
, Mwh 202.4 322.1 243.4 117.6 105.2
Total use of fuel, Mwh 820,496 898,551 838,743 892,250 597,300
tCO
2
2
217,539 237,621 220,122 237,296 160,988
g-CO
2
per ton mile
3
13.67 15.74 15.48 15.47 13.10
tSO
X
2
87.34 98.36 56.44 179.27 128.90
mg-SO
X
per ton mile
3
5.52 5.93 3.97 11.69 10.49
Telko 2022 2021 2020 2019 2018
Purchased energy
1
, Mwh 1,347.7 1,172.0 768.5 1,093.0 1,059.5
tCO
2
2
219.6 340.1 215.8 306.9 337.2
Leipurin 2022 2021 2020 2019 2018
Purchased energy
1
, Mwh 3,681.1 3,212.8 4,148.0 3,394.8 4,240.6
tCO
2
2
606.2 965.4 1,124.0 1,154.2 1,441.0
Other operations 2022 2021 2020 2019 2018
Purchased energy
1
, Mwh 192.6 180.9 182.7 150.3 177.1
tCO
2
2
20.0 27.2 27.5 23.7 25.60
Aspo Group 2022 2021 2020 2019 2018
tCO
2
2
218,385 238,963 221,511 238,805 161,350
Net sales, M€ 652.6 573.3 500.7 587.7 540.9
Aspo Group carbon intensity 0.33 0.42 0.44 0.41 0.30
1
Purchased energy mainly measured, if not possible to measure the figures are estimated.
2
The figures include Raahe from 2021 onwards. Tug Charlie’s use of shore-side electricity increases energy consumption
from 2021 onwards.
3
Figures corrected retrospectively for 2018.
The reporting period is the calendar year 2022. In principle, the reporting covers the entire Aspo Group. Any exceptions have been stated in conjunction with the indicators. The
personnel figures given in the sustainability report include all permanent employees, including long-term absentees. The personnel figures also include the temporary maritime crew
of AtoB@C Shipping, a subsidiary of ESL Shipping, but only with regard to vessels owned by the company. In the financial statements, the personnel figures only include Aspo
Group’s own employees, not temporary external workers. Additionally, the personnel figures only include active employees.
Sustainability
tables
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ASPO’S YEAR 2022
■
INJURY FREQUENCY AND SICK LEAVES
ESL Shipping – Office 2022 2021 2020 2019 2018
TRIF
1
8.2 8.1 2.7
Sick leaves, %
2
0.5 0.7 0.8 1.4 0.5
ESL Shipping – Marine personnel 2022 2021 2020 2019 2018
TRIF
1
22.0 22.3 21.4 22.1 21.1
Sick leaves, %
2
2.0 3.7 4.6 4.0 3.9
AtoB@C Shipping – Marine personnel 2022 2021 2020 2019 2018
TRIF
1
10.2 10.9
Sick leaves, %
2
0.2 0.30
Telko 2022 2021 2020 2019 2018
TRIF
1
1.7 0 0
Sick leaves, %
2
1.4 1.2 1.2 1.4 1.1
Leipurin 2022 2021 2020 2019 2018
TRIF
1
0 6.3 10.3
Sick leaves, %
2
2.5 3.5 2 4.0 1.7
Other operations 2022 2021 2020 2019 2018
TRIF
1
0 0 0
Sick leaves, %
2
0.6 0.3 0.3 1.6 0.7
Aspo Group 2022 2021 2020 2019 2018
TRIF
1
8.1 8.8 8.5
1
Injury frequency is presented per 1,000,000 working hours.
TRIF = All injuries that require medical treatment and/or alternative work.
2
Sick-leave absence ratio is calculated: (sick days/total work days)*100. For AtoB@C Shipping’s marine personnel in Sweden,
the sick leave % is calculated only for days at sea.
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ASPO’S YEAR 2022
■
NUMBER OF PERSONNEL BY GEOGRAPHICAL AREA, DECEMBER 31
ESL Shipping
1
2022 2021 2020 2019 2018
Finland 277 276 275 262 262
Scandinavia 78 79 79 74 69
Baltic countries
Russia, other CIS countries and Ukraine
Other countries 1 1 1
Total 355 355 355 337 332
Telko 2022 2021 2020 2019 2018
Finland 52 50 49 52 50
Scandinavia 48 38 37 24 27
Baltic countries 52 54 34 36 33
Russia, other CIS countries and Ukraine 114 155 140 162 161
Other countries 27 24 25 25 25
Total 293 321 285 299 296
Leipurin 2022 2021 2020 2019 2018
Finland 39 76 73 80 100
Scandinavia 70
Baltic countries 48 47 49 50 49
Russia, other CIS countries and Ukraine 98 147 141 167 171
Other countries 10
Total 255 270 263 297 330
Other operations 2022 2021 2020 2019 2018
Finland 42 36 32 27 25
Scandinavia
Baltic countries
Russia, other CIS countries and Ukraine
Other countries
Total 42 36 32 27 25
Aspo Group 2022 2021 2020 2019 2018
Finland 410 459 450 451 470
Scandinavia 196 57 116 98 96
Baltic countries 100 101 83 86 82
Russia, other CIS countries and Ukraine 212 302 281 329 332
Other countries 27 25 27 27 37
Total 945 944 957 991 1,017
1
ESL Shipping’s marine personnel of the subsidiary AtoB@C Shipping reported for the vessels owned.
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■
NUMBER OF PERSONNEL BY CATEGORY, DECEMBER 31
ESL Shipping
1
2022 2021 2020 2019 2018
Office staff 47 43 41 38 35
Supervisors 6 7 8 3
Management 6 7 6 7 8
Non-office staff 2 2 2 2 3
Total 61 59 57 50 46
Telko 2022 2021 2020 2019 2018
Office staff 234 265 233 250 250
Supervisors 47 26 25 19 17
Management 5 24 20 24 20
Non-office staff 7 6 7 6 9
Total 293 321 285 299 296
Leipurin 2022 2021 2020 2019 2018
Office staff 164 190 182 206 211
Supervisors 39 35 37 40 38
Management 7 17 16 19 20
Non-office staff 45 28 28 32 61
Total 255 270 263 297 330
Other operations 2022 2021 2020 2019 2018
Office staff 34 28 26 22 19
Supervisors 3 2 2 2 3
Management 5 6 4 3 3
Non-office staff
Total 42 36 32 27 25
Aspo Group
1
2022 2021 2020 2019 2018
Office staff 478 541 497 538 539
Supervisors 95 72 74 65 63
Management 23 55 47 56 51
Non-office staff 54 40 41 45 78
Total 650 708 659 704 731
1
Excluding marine personnel.
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■
NUMBER OF PERSONNEL BY CONTRACT TYPE, DECEMBER 31
ESL Shipping 2022 2021 2020 2019 2018
Amount of personnel 355 295 355 337 332
Full-time contract
1
63 59 56 50 45
Part-time contract
1
1 1
1
Excluding marine personnel.
Telko 2022 2021 2020 2019 2018
Amount of personnel 293 321 285 299 296
Full-time contract 287 315 278 293 290
Part-time contract 6 6 7 6 6
Leipurin 2022 2021 2020 2019 2018
Amount of personnel 255 270 263 297 330
Full-time contract 246 264 260 293 316
Part-time contract 9 6 3 4 14
Other operations 2022 2021 2020 2019 2018
Amount of personnel 42 36 32 27 25
Full-time contract 41 35 30 26 22
Part-time contract 1 1 2 1 3
■
GENDER DISTRIBUTION, DECEMBER 31
ESL Shipping 2022 2021 2020 2019 2018
Women 45 40 40 36 35
Men 310 255 315 301 297
Total 355 295 355 337 332
Telko 2022 2021 2020 2019 2018
Women 148 168 151 164 160
Men 145 153 134 135 136
Total 293 321 285 299 296
Leipurin 2022 2021 2020 2019 2018
Women 132 154 149 166 198
Men 123 116 114 131 132
Total 255 270 263 297 330
Other operations 2022 2021 2020 2019 2018
Women 22 18 18 16 14
Men 20 18 14 11 11
Total 42 36 32 27 25
The Boards of Aspo and segments 2022 2021 2020 2019 2018
Women 6 6 6 7 5
Men 14 8 9 9 10
Total 20 14 15 16 15
Aspo Group 2022 2021 2020 2019 2018
Women 347 383 367 394 419
Men 598 561 605 613 613
Total 945 944 972 1,007 1,032
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■
AGE DISTRIBUTION, DECEMBER 31
ESL Shipping 2022 2021 2020 2019 2018
< 24 10 4 5 12 9
25–39 128 114 132 119 103
40–54 140 119 141 127 107
55 < 77 58 77 79 56
Total 355 295 355 337 275
Telko 2022 2021 2020 2019 2018
< 24 1 3 3 8 6
25–39 106 144 131 140 137
40–54 137 131 116 117 119
55 < 49 43 35 34 34
Total 293 321 285 299 296
Leipurin 2022 2021 2020 2019 2018
< 24 7 8 1 3 17
25–39 75 97 105 129 154
40–54 130 122 121 132 126
55 < 43 43 36 33 33
Total 255 270 263 297 330
Other operations 2022 2021 2020 2019 2018
< 24 1 1
25–39 19 16 13 6 6
40–54 14 11 9 10 10
55 < 9 9 9 10 9
Total 42 36 32 27 25
Aspo Group 2022 2021 2020 2019 2018
< 24 18 15 10 24 33
25–39 328 375 385 400 406
40–54 421 394 397 402 381
55 < 178 160 165 165 140
Total 945 944 957 991 960
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■
AVERAGE AGE OF EMPLOYEES
ESL Shipping 2022 2021 2020 2019 2018
Average age of employees 44 44 45 45 44
Telko 2022 2021 2020 2019 2018
Average age of employees 41 41 42 41 40
Leipurin 2022 2021 2020 2019 2018
Average age of employees 44 42 43 41 39
Other operations 2022 2021 2020 2019 2018
Average age of employees 44 49 43 47 47
Aspo Group 2022 2021 2020 2019 2018
Average age of employees 44 42 44 44 44
■
EMPLOYEE TURNOVER RATE
ESL Shipping 2022 2021 2020 2019 2018
turnover rate, ground staff 10 8 9 16 16
Telko 2022 2021 2020 2019 2018
turnover rate 21 17 8 20 14
Leipurin 2022 2021 2020 2019 2018
turnover rate 17 17 10 26 26
Other operations 2022 2021 2020 2019 2018
turnover rate 8 13 19 39 18
Aspo Group 2022 2021 2020 2019 2018
turnover rate 17 15 9 23 21
Average turnover, %
■
CODE OF CONDUCT AND COMPLIANCE -TRAINING 2022
Compliance, % Code of Conduct, %
ESL Shipping 100 100
Telko 100 100
Leipurin 99 100
Other operations 100 100
Aspo Group 100 100
Family leave and other long absences have been excluded. Excluding marine personnel.
■
PEOPLE POWER (SCALE 0–100)
2022 rating 2021 rating
ESL Shipping 78.9 AA 79.8 AA+
Telko 81.8 AA+ 82.2 AAA
Leipurin 70.5 A 80 AA+
Other operations 75.2 AA+ 76.4 AA+
In 2021, Aspo introduced People Power personnel survey, which aims to identify the organisation’s strengths and areas for development in
terms of its own work, the community work community and the entire organization.
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ASPO’S YEAR 2022
Corporate governance
statement
GOVERNING PRINCIPLES
Aspo’s decision-making and administration comply with
the Finnish Limited Liability Companies Act, securities
market legislation, other regulations concerning public
companies, Aspo Plc’s Articles of Association, and the
rules and regulations of Nasdaq Helsinki Ltd. Aspo fol-
lows the Finnish Corporate Governance Code, effective
from January 1, 2020, which is available on the Securi-
ties Market Association’s website www.cgfinland.fi.
In addition to the Corporate governance statement,
Aspo has published a separate management report
2022 in Aspo’s Year 2022 publication. This statement
will not be updated during the financial year, but the
information on the subjects included in it, as well as
other necessary and up-to-date information for investors
is available on the company’s homepages at www.aspo.
com.
The corporate governance statement as well as the
company’s financial statements, annual report and audi-
tor’s report are available on Aspo’s website at www.
aspo.com.
GROUP STRUCTURE
Aspo Group’s parent company, Aspo Plc, is a Finnish
public company domiciled in Helsinki. The main responsi-
bility for Aspo Group’s administration and operations lies
with Aspo Plc’s governing bodies, which are the Annual
Shareholders’ Meeting, the Board of Directors and the
CEO. The highest decision-making power is exercised by
the shareholders at the Annual Shareholders’ Meeting.
The Board of Directors and the CEO are responsible for
the management of Aspo Group. The Board’s Audit Com-
mittee and Human Resources and Remuneration Com-
■
GOVERNANCE
mittee support its work. The Group Executive Committee
assists the CEO in managing the Group.
Aspo develops its group structure and businesses
responsibly and in the long term. Aspo Plc’s task is to
own, lead and develop the operations of its subsidiar-
ies and other Group companies, centrally administer the
Group companies, take care of issues related to financ-
ing and strategic planning, and plan and implement finan-
cially expedient investments. Aspo supports the success
and growth of its businesses through appropriate capa-
bilities.
The Group’s operational business is carried out in the
Group companies, ESL Shipping Ltd, Leipurin Plc and
Telko Ltd, and in their subsidiaries in Finland and abroad.
SHAREHOLDERS’ MEETING
The Annual Shareholders’ Meeting is arranged every year
on a date set by the Board of Directors, and it deals with
the issues that are the Annual Shareholders’ Meeting’s
responsibility as outlined in the Articles of Association,
the proposals of the Shareholders’ Nomination Board
and the Board of Directors, and other proposals to the
Annual Shareholders’ Meeting. The Annual Shareholders’
Meeting, for instance, confirms the financial statements,
elects the Board members and the auditor, and decides
on profit distribution and the remuneration of the Board
members and the auditor.
When required, an Extraordinary Shareholders’ Meet-
ing is convened. The Board of Directors is also obliged
to convene an extraordinary shareholders’ meeting if an
auditor or shareholders with a total of at least 10% of all
shares so demand in writing in order for a given matter
to be dealt with.
According to the Companies Act, the shareholders
are entitled to have a matter falling within the compe-
tence of the Annual Shareholders’ Meeting dealt with by
the Annual Shareholders’ Meeting if the shareholder so
demands in writing from the Board of Directors well in
advance, so that the matter can be included in the notice
of the meeting.
The Board of Aspo Plc convenes the Annual Share-
holders’ Meetings. The notice of meeting is published in
a stock exchange release and on the company’s home-
pages not earlier than two months and not later than
twenty-one (21) days prior to the meeting, but at least
nine (9) days prior to the record date for the Annual
Shareholders’ Meeting. In addition, the Board of Direc-
tors may, at their discretion, decide to announce the
Annual Shareholders’ Meeting in one or several newspa-
pers. In addition, the following information is published
on the company’s website 21 days before the Annual
Shareholders’ Meeting at the latest:
• Total number of shares and voting rights by share
class on the date of the notice of meeting
• Documents to be presented to the Shareholders’
Meeting
• Decision proposal of the Board of Directors or some
other competent body
• Any issue that is included in the agenda of the Share-
holders’ Meeting but for which no decision is pro-
posed
Aspo Plc is a Finnish publicly listed company. Its objective is to
increase the shareholder value responsibly in the long term by
leading and developing the businesses it owns.
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ASPO’S YEAR 2022
The resolutions of the Annual Shareholders’ Meet-
ing are published after the meeting in a stock exchange
release. The minutes of the Annual Shareholders’ Meet-
ing with the voting results and appendices related to the
decisions are published on the company’s website within
two weeks of the Annual Shareholders’ Meeting.
SHAREHOLDERS’ NOMINATION BOARD
Aspo has a permanent Shareholders’ Nomination Board
that prepares proposals to the Annual Shareholders’
Meeting for the election and remuneration of the mem-
bers of the Board of Directors and the remuneration of
the Board committees. The Shareholders’ Nomination
Board of Aspo consists of the representatives of the
four largest shareholders. In addition, the Chairperson of
Aspo’s Board of Directors acts as an expert member of
the Nomination Board.
The following representatives of the largest share-
holders were members of the Nomination Board which
prepared proposals for the Annual Shareholders’ Meet-
ing of 2023: Roberto Lencioni, Chairman (Vehmas fam-
ily, including AEV Capital Holding Oy); Gustav Nyberg
(Nyberg family, including Oy Havsudden Ab); Annika
Ekman (Ilmarinen Mutual Pension Insurance Company);
and Pekka Pajamo (Varma Mutual Pension Insurance
Company). In addition, Heikki Westerlund, Chairman of
Aspo’s Board of Directors, has acted as an expert mem-
ber of the Nomination Board.
In 2022, the Shareholders’ Nomination Board con-
vened four times. The participation rate was 100%.
BOARD OF DIRECTORS
The Board of Directors sees to the administration of
Aspo and the appropriate organization of its operations.
The Board of Directors has established an Audit Com-
mittee and Human Resources and Remuneration Com-
mittee to support its work. When required, the Board of
Directors can establish other permanent or temporary
committees.
According to the Articles of Association, Aspo Plc’s
Board of Directors comprises no fewer than five and
no more than eight members. The number of members
of the Board is determined at the Annual Shareholders’
Meeting, where its members are also elected. The mem-
bers of the Board of Directors elects a Chairperson and a
Vice Chairperson from among its members. In the 2021
Annual Shareholders’ Meeting, seven Board members
were elected. The term of the members ends at the con-
clusion of the next Annual Shareholder’s Meeting follow-
ing the election.
The Board constitutes a quorum when more than half
of the members, including either the Chairperson or Vice
Chairperson, are present. The Board of Directors seeks
to make unanimous decisions, but the matters are put
to a vote when required. The decisions are made by a
majority of votes. In the event of a tie, the Chairperson
shall have the casting vote.
The Board of Directors convenes at regular intervals,
and also whenever necessary.
The duties and responsibilities of the Board of Direc-
tors are set out in the Articles of Association, the Finn-
ish Limited Liability Companies Act, and other applica-
ble legislation. The particular duty of the Board of Direc-
tors is to promote the interests of the shareholders and
the company, among other things, by taking care of stra-
tegic policy decisions and appropriate organization of the
business and administration. The Board of Directors is
also responsible for ensuring that the supervision of the
company’s accounting and asset management has been
appropriately organized. The Board of Directors pro-
cesses and decides on all matters concerning the com-
pany’s operations that are most important for the com-
pany. The Board of Directors has competence in all mat-
ters that are not handled by other administrative bodies
pursuant to law or the Articles of Association.
Aspo Plc’s Board of Directors has confirmed written
standing orders which state that the matters to be han-
dled by the Board include, but are not limited to:
• Aspo Group’s strategic policies and divisional strate-
gies
• Group structure
• Matters to be presented to Shareholders’ Meetings
• Interim reports and consolidated financial statements
• Group business plans, budgets and investments
• Expanding and scaling back operations, acquisitions/
divestments of companies or operations
• Group risk management, insurance and treasury poli-
cies
• Group environmental policy
• Management remuneration and incentive plans
• Appointment of the CEO
• Monitoring the financial and financing situation of
Aspo Group
The Board carries out an annual self-evaluation of its
operations and working methods.
In 2022, the Board of Directors arranged 21 meet-
ings. The participation rate was 99%.
The majority of the Board of Directors are independ-
ent of the company and its major shareholders.
Board committees
The Board of Directors may establish committees or
other permanent or temporary bodies to carry out the
tasks it orders in compliance with its rules of procedure.
The Board of Directors elects the members of the com-
mittee and appoints its Chairperson. The Board of Direc-
tors confirms the rules of procedure for each commit-
tee, specifying the key tasks and operating principles of
the committee concerned. The majority of members of
each committee must be independent of the company,
and at least one member has to be independent of the
company’s main shareholders. The members of commit-
tees must have the competence required for the range
of tasks handled by the committee concerned.
Audit Committee
The Audit Committee is tasked with preparing issues
related to the company’s financial reporting and control.
The Audit Committee does not have independent deci-
sion-making authority, but the Board makes the deci-
sions on the basis of preparations by the committee.
The Audit Committee consists of the chairperson and
at least two members, who the Board appoints from
among the Board members for one year at a time. In
2022, Mammu Kaario acted as the Chair of the Audit
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ASPO’S YEAR 2022
Committee, and Patricia Allam, Mikael Laine and Tatu
Vehmas acted as committee members.
The tasks of the Audit Committee are:
• Monitoring the financial statements process
• Control of the financial reporting process
• Assessment of the use and presentation of alterna-
tive key indicators
• Monitoring the effectiveness of internal control and
risk management systems
• Review of the internal audit’s plans and reports
• Dealing with the plans and reports of the company’s
compliance function
• Dealing with the report issued by the company
regarding its corporate governance system and the
report issued regarding non-financial information
• Monitoring the statutory audit of the financial state-
ments and consolidated financial statements
• Assessing the independence of the audit firm
• Assessing the auxiliary services offered by the audit
firm
• Preparing the decision on the election of the auditor
• Other contacts with the auditor in addition to the
tasks required by regulation
• Definition of the principles concerning the monitoring
and assessment of related party transactions
The Audit Committee convenes regularly at least twice a
year. In 2022, the Audit Committee had eight meetings.
The participation rate was 100%.
■
ATTENDANCE AT THE MEETINGS BY MEMBERS OF THE BOARD AND ITS COMMITTEE MEMBERS IN 2022
Attendance
Board member since Committee membership Board Audit Committee
Human Resources and
Remuneration Committee
Allam Patricia 2021 Audit Commitee 21/21 8/8
Kaario Mammu 2012 Audit Committee (Chair) 21/21 8/8
Laine Mikael 2016 Audit Committee 21/21 8/8
Kolunsarka Tapio* 2022 Human Resources and Remuneration Committee 11/12 4/4
Pöyry Salla 2016 Human Resources and Remuneration Committee 21/21 8/8 6/6
Vehmas Tatu 2018 Human Resources and Remuneration Committee as well as Audit Committee 21/21 6/6
Westerlund Heikki** 2020 Human Resources and Remuneration Committee (Chair) 21/21 6/6
* Member of the Board and Human Resources and Remuneration Committee since April 4, 2022
** Chair of the Board and Human Resources and Remuneration Committee since April 8, 2021, member of Audit Committee until April 8, 2021.
Human Resources and Remuneration committee
The Human Resources and Remuneration Committee is
responsible for preparing matters related to the remu-
neration and appointment of the CEO and other mem-
bers of the company’s management and to other per-
sonnel reward schemes. The Committee does not have
independent decision-making powers; the Board makes
the decisions collectively on its behalf. The Human
Resources and Remuneration Committee consists of
the chairperson and of two to three members, who the
Board appoints from among the Board members for one
year at a time.
In 2022, Heikki Westerlund was the Chair of the
Human Resources and Remuneration Committee, with
Tapio Kolunsarka, Salla Pöyry and Tatu Vehmas acting as
its members.
The tasks of the Human Resources and Remuneration
Committee are:
• Preparing the appointment of the CEO and other
members of the management, and to identify their
successors;
• Preparing the salaries and other financial benefits of
the CEO and other members of the management;
• Preparing matters related to the company’s remuner-
ation schemes;
• Assessing the remuneration paid to the CEO and
other members of the management, and ensuring
that remuneration schemes are purposeful;
• Assessing programs and other incentive schemes
that are based on shares or special rights entitling
their holder to shares and present recommendations
about them to the Board of Directors;
• Planning the remuneration of other personnel and
the development of the organization;
• Preparing the Remuneration Report;
• Drawing up the Board’s diversity report;
• Monitoring the need to update the Remuneration
Policy and compliance with it (regarding remuneration
of the CEO);
• Responding to questions related to the Remunera-
tion Report at the Shareholders’ Meeting; and
• Recommending an advisor for the company’s Board
of Directors, if required, and preparing a proposal for
fees paid to specialists.
The Human Resources and Remuneration Committee
convenes regularly at least three times a year. In 2022,
the Committee had six meetings. The average participa-
tion rate was 100%.
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ASPO’S YEAR 2022
Chair of the Board of Directors
Since April 8, 2021, Heikki Westerlund (born in 1966),
M.Sc. (Econ.), has been the Chair of Aspo Plc’s Board of
Directors.
Diversity of the Board of Directors
Aspo regards diversity of the Board of Directors as a sig-
nificant part of responsible operations and a success fac-
tor that allows the company to reach its strategic goals.
Diversity is part of a functional Board of Directors that is
able to work together and respond to the requirements
set by the company’s businesses and strategic goals,
and to challenge the company’s acting management in a
proactive and constructive manner.
The Shareholders’ Nomination Board prepares and
presents the proposal for the composition of the Board
of Directors to the Annual Shareholders’ Meeting. When
planning the composition of the Board of Directors, the
Shareholders’ Nomination Board takes into account
these diversity principles and particularly the needs
and development phases of the company’s businesses,
as well as the competence areas required by different
Board committees. When selecting board members, the
key objective is to ensure that the Board of Directors as
a whole supports the development of Aspo’s current and
future business operations.
The Shareholders’ Nomination Board discusses the
competence, know-how and suitability required of Board
members so that each member can be assumed to have
the required expertise and experience for successfully
carrying out their duties. The objective of the prepara-
tory work of the Nomination Board is to ensure that the
Board of Directors forms a functional entity.
Diversity on the Board of Directors is examined from
different perspectives. For the composition of Aspo’s
Board of Directors, key factors are, in particular, com-
petence, with each board member supplementing one
another, education and experience in different markets,
fields of business, management and operations in differ-
ent development phases, as well as the personal char-
acteristics of each member. In addition, diversity in the
Board of Directors is supported, among others, by expe-
rience in an international operating environment and con-
sideration of the age and gender distribution.
The members of Aspo’s Board of Directors must have
the competence required for the position and the ability
to allocate sufficient time to their duties. When compos-
ing the Board of Directors, the long-term needs and suc-
cession planning are also taken into account. The com-
position of the Board of Directors and the number of
members must enable the Board of Directors to work
effectively.
CHIEF EXECUTIVE OFFICER
Aspo Plc’s CEO is selected by the Board of Directors.
The Board also decides on the remuneration payable to
the CEO, on the long-term and short-term incentive pro-
grams, and on other terms and conditions of the CEO’s
contract of service. The terms and conditions of the
CEO’s contract of service are specified in a written con-
tract approved by the Board of Directors. The CEO is
appointed for an indefinite term.
Rolf Jansson (born in 1969), M.Sc. (Eng.), M.Sc. (Econ.)
acts as the CEO of Aspo. The CEO leads and develops
the Group’s business and is responsible for the opera-
tive management in accordance with the instructions of
the Board of Directors. The CEO presents matters and
reports to the Board of Directors. The CEO is responsi-
ble for the Group administration in accordance with the
instructions of the Board of Directors, and for the com-
pany accounting complying with applicable legislation
and the reliable arrangement of the company finances.
The CEO also serves as the Chairman of the subsidi-
ary Boards and acts as the operational supervisor of the
Managing Directors of the subsidiaries and Group admin-
istration. Furthermore, the CEO is responsible for the
internal audit and for Group risk management, which are
coordinated by the Director of Legal Affairs.
GROUP EXECUTIVE COMMITTEE
The CEO is assisted by the Group Executive Committee.
The Group Executive Committee is responsible for devel-
oping the strategic structure of Aspo Group and its earn-
ings, and it prepares the policies and common practices.
The Croup Executive Committee consists of the Group’s
CEO, CFO, Vice President Corporate Development, Direc-
tor of Legal Affairs, and the Managing Directors of the
Group companies. The Group Executive Committee con-
venes at least six times a year.
REMUNERATION
The Remuneration Policy concerning Board members
and the CEO was approved by the Board of Directors
of Aspo on March 4, 2022. The Remuneration Policy
describes the decision-making procedures and principles
concerning the remuneration of the Board of Directors
and the CEO, and it is presented to the Annual Share-
holders’ Meeting every four years or whenever it is
amended.
The salaries, remuneration and other financial benefits
of the CEO and the Board of Directors are presented in a
separate Remuneration Report available on the compa-
ny’s website at www.aspo.com/remuneration.
AUDIT
The statutory duty of the independent external auditor
is, in particular, to ensure that the financial statements
provide correct and sufficient information on the compa-
ny’s financial results for the period and its financial posi-
tion.
According to the Articles of Association, the Annual
Shareholders’ Meeting elects the auditor, which must be
an audit firm approved by the Finland Chamber of Com-
merce. In addition, the Annual Shareholders’ Meeting
decides on the fee payable to the auditor and its basis.
The term of the auditor ends at the close of the next
Annual Shareholders’ Meeting following the election.
When changing the auditor, the Annual Shareholders’
Meeting elects the new auditor on the basis of the pro-
posal of the Board of Directors, prepared by the Audit
Committee.
The auditor elected by the Annual Shareholders’ Meet-
ing is responsible for instructing and coordinating the
audit work centrally in the Group. As part of the annual
audit, the auditor audits the company’s accounts and
administration. In addition, the auditor audits the consol-
idated financial statements and other relations between
Group companies.The auditor provides the company’s
shareholders with the auditor’s report required by law in
connection with the financial statements. The Board also
receives other possible reports and statements issued
by the auditor.
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ASPO’S YEAR 2022
The 2022 Annual Shareholders’ Meeting elected the
Audit Firm Deloitte Oy as the auditor. Jukka Vattulainen,
APA, has been the auditor in charge. In 2021, companies
belonging to the Deloitte Oy in Finland and abroad were
paid approximately EUR 355,000 for performing the
audits for the Aspo Group companies. In addition, other
services were acquired for approximately EUR 41,000.
INTERNAL CONTROL
The particular objective of Aspo’s internal control is to
ensure the profitability and efficiency of operations, reli-
able financial reporting, as well as compliance with the
applicable laws and regulations and the agreed practices
and operating principles. Aspo’s internal control includes
the control that is built in to the business processes, the
Group’s management system, and financial reporting
covering the entire Group. Internal control is an integral
part of the company’s management, risk management
and administration.
The aim of internal control is to create sufficient cer-
tainty of goals and objectives being reached in the fol-
lowing issues:
• Operational profitability and efficiency and capital
control
• Reliability and integrity of financial and operational
information
• Compliance with laws, regulations and agreements,
as well as ethical principles and social responsibility
• Safeguarding and responsible management of assets
and brands
The responsibility to arrange internal control lies with
the Board of Directors and the CEO both at Group level
and in the different business areas. The Board of Direc-
tors is responsible to the shareholders and the CEO
to the Board. The internal audit function supports the
Group and business management in their internal control
responsibility, and the aim is to provide the Aspo Board
of Directors with a sufficient certainty of the functioning
of internal control.
FINANCIAL REPORTING
The control of financial reporting is based on monitor-
ing of business processes. The information for financial
reporting is created as business processes progress, and
responsibility for correct information is shared by all par-
ticipants in the process. The financial reporting process is
decentralized and monitored by the Audit Committee.
Consolidated financial statements are prepared
according to the IFRS standards as adopted by the EU.
The financial statements of the parent company and the
Finnish subsidiaries are prepared according to the Finnish
Accounting Standards. Each separate company complies
with the legislation of the country where it is located,
but reports the information according to Aspo’s internal
accounting instructions. Separate companies may have
their own chart of accounts, but all information is con-
solidated on the basis of a common chart of accounts to
the unit level, where their reliability is assessed before
the information is transferred to Group level. Aspo
Group’s financial information is verified, and assessed
on monthly basis. At each phase the unit responsible for
the quality and generation of information will assess its
reliability. The Group-level monitoring and reconciliation
mechanisms are used on monthly bases.
The systems required for financial reporting are
decentralized and used according to the principles of
internal control. Achieving the set targets is monitored
on a monthly basis with the Group’s consolidation and
reporting system. In addition to actual and compara-
tive figures, the system provides up-to-date forecasts.
The reports are provided for the Aspo Board of Directors
monthly. The Board of Directors assesses the Group’s
position and future based on the provided information.
The Board of Directors is responsible for the contents
and publication of the financial statements.
In addition to the Audit Committee, the reliability of
reporting and processes are assessed by an independent
external audit firm.
INTERNAL AUDIT
Internal audit assists the Board of Directors in its con-
trol responsibility by assessing the level of internal con-
trol maintained to achieve Aspo’s operational targets,
for example. Internal audit supports the organization by
assessing and verifying the effectiveness of business
processes, risk management, as well as management
and administration.
The Board of Directors approves the principles of
internal audit as part of internal control. The Group’s
Director of Legal Affairs is responsible for the coordina-
tion of internal audit activities, and internal audit find-
ings are reported to the CEO, the Audit Committee and
the Board of Directors. Internal audit is organized corre-
sponding to the size of the Group. Additional resources
and special skills will be obtained when required. Audits
are based on risk assessments. Audit assessment and
assurance target the profitability and effectiveness
of activities, the reliability of financial and operational
reporting, compliance with the law, and the safeguard-
ing of assets.
Written audit reports are prepared and distributed
to the Group’s CEO, the senior managers in the audited
sub-group, and the managers of the audited business or
unit. Internal audit prepares a summary report on con-
ducted audits, the most significant findings and agreed
measures at least quarterly for the Audit Committee of
Aspo’s Board of Directors.
The Audit Committee monitors the operations and
effectiveness of the company’s internal audit at its meet-
ings and also reviews the plans and reports of internal
audit.
RISK MANAGEMENT
The purpose of risk management is to contribute to the
achievement of the Group’s goals. Risk management
aims to proactively identify and manage potential prob-
lems and to identify and use business opportunities. Risk
management supports the development and implemen-
tation of Aspo’s strategy.
The purpose of risk management is that:
• Aspo has an effective risk management control
model, and related processes integrated into Aspo’s
business management.
• Managers have access to high-quality and up-to-date
information on business risks and their control meas-
ures, providing support for decision making.
• The probability of the realization of risks and unex-
pected events, and their impact on finances and the
reputation can be reduced effectively.
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ASPO’S YEAR 2022
• Risk management measures and selected control
measures are based on Aspo’s willingness to take
risks and ability to tolerate risks.
• Cooperation in risk management is effective between
Aspo’s different businesses.
Managers of the Group and its businesses are responsi-
ble for risk management. They are also responsible for
determining sufficient measures and their implementa-
tion, and for monitoring and ensuring that the measures
are implemented as part of daily management of oper-
ations. Risk management is coordinated by the Group’s
Director of Legal Affairs who reports to the CEO.
The Audit Committee monitors the effectiveness of
the risk management systems and deals with risk man-
agement processes, plans and reports.
Each business has a separate risk management pro-
gram. Business risks and their management are dis-
cussed regularly by management teams of businesses.
The Group’s shared functions ensure that sufficient risk
assessment and reporting procedures are incorporated
into the processes they are responsible for. The Group’s
administration is responsible for Group-level insurance
plans.
Characteristic risks in each business area are identified
in the business units, assessed in the business unit man-
agement teams, and reported to the subsidiary Boards
and, if need be, also to the Aspo Board of Directors or
the Audit Committee.
Risks are continuously assessed and their manage-
ment is discussed in the business unit management
teams. Risk assessments are updated according to
Aspo’s management policy and the most noteworthy
findings are presented in the quarterly interim reports.
Financial risks, their management principles and
related organization are presented in the notes to the
financial statements.
RELATED PARTY TRANSACTIONS
Aspo complies with the legislation governing related
party transactions, the Finnish Corporate Governance
Code, and the rules and instructions of Nasdaq Hel-
sinki Oy. On these bases, Aspo must evaluate and mon-
itor business transactions in which it is engaged with
its related parties, and ensure that any conflicts of
interest are appropriately addressed in decision-mak-
ing. Aspo maintains a list of related parties and verifies
any changes at least once a year. If related party trans-
actions are significant for Aspo and differ from regular
business activities, or have been carried out on the basis
of unusual market conditions, decision-making processes
associated with these related party transactions must
be described in financial statements.
Aspo’s related party transactions are described in
Note 5.2 (Related parties) of the consolidated financial
statements. Related party transactions are not signifi-
cant for the company, nor do they differ from the compa-
ny’s normal business activities, and they have been car-
ried out at normal market conditions.
INSIDER MANAGEMENT
Aspo Group complies with the EU regulation on market
abuse (EU No 596/2014) and regulations issued pursu-
ant to it, including the insider instructions of Nasdaq Hel-
sinki Oy.
Permanent insiders of Aspo Plc include members of
the Board of Directors, the Group’s Executive Commit-
tee, the auditor and other individuals who have regu-
lar access to insider information. Individuals working in
managerial positions at Aspo Plc include members of the
Board of Directors and the Group’s Executive Commit-
tee. When necessary, Aspo establishes and maintains
project-specific insider registers regarding individuals
who participate in the preparation of insider projects.
The 30-day closed window preceding the publication
of interim reports, half year financial reports and finan-
cial statements applies to individuals working in mana-
gerial positions at Aspo and to permanent insiders. Dur-
ing the closed window, transactions using Aspo’s shares
and other financial instruments in one’s own name or
in the name of a third party are not permitted. Further-
more, individuals entered in project-specific insider reg-
isters cannot trade on securities issued by the company
during the specific project period. Individuals working in
managerial positions at Aspo and their related parties
must report any business transactions associated with
the company’s financial instruments to the company and
the Finnish Financial Supervisory Authority.
The Group’s CFO is responsible for the control and
monitoring of insider issues.
Aspo Plc’s insider register and project-specific insider
registers are maintained in the Sire service, an applica-
tion service provided by Euroclear Finland for its custom-
ers to maintain registers associated with insider man-
agement.
Aspo Plc’s report on the Corporate governance state-
ment, Remuneration Policy and Remuneration Report for
2022 are available on Aspo’s website at www.aspo.com.
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ASPO’S YEAR 2022
Board of Directors
DECEMBER 31, 2022
■
HEIKKI WESTERLUND
M.Sc. (Econ.), born in1966
Board professional
Chair of the Board since April 2021
Member of the Board since 2020
Chair of the Human Resources and Remuneration
Committee since 2021
Member of the Audit Committee in 2020
Independent of the company and its major shareholders
Shareholdings in Aspo on December 31, 2022: 15,000
shares, or 0.05% of the total number of shares,
held by related party Heiwes Oy: 20,000 shares, or 0.06%
of the total number of shares.
No holdings or rights based on share-based incentive plans.
■
PATRICIA ALLAM
M.Sc. (Econ.), MBA (IMD), born in1985
Member of the Board since 2021
Member of the Audit Committee since 2021
Independent of the company, dependent on its major
shareholders
Shareholdings in Aspo on December 31, 2022: 6,371
shares, or 0.02% of the total number of shares, held by
related party Havsudden Oy Ab: 3,262,941 shares, or
10.38% of the total number of shares.
Aspo´s hybrid bond 2022: EUR 0.2 million, EUR 0.7 million
held by related party Havsudden Oy Ab.
No holdings or rights based on share-based incentive plans.
■
MAMMU KAARIO
Master of Laws with court training, MBA, born in 1963
Board professional
Vice Chair of the Board since 2018
Member of the Board since 2012
Chair of the Audit Committee since 2017
Member of the Audit Committee since 2012
Independent of the company and its major shareholders
Shareholdings in Aspo on December 31, 2022: 10,000
shares, or 0.03% of the total number of shares.
No holdings or rights based on share-based incentive plans.
■
TAPIO KOLUNSARKA
M.Sc. (Tech.), M.Sc. (Econ.), born 1975
President & CEO, Evac Group, 2020–
Member of the Board since 2022
Member of the the Human Resources and Remuneration
Committee since 2022
Independent of the company and its major shareholders
Shareholdings in Aspo on December 31, 2022: no Aspo
shares.
No holdings or rights based on share-based incentive plans.
■
MIKAEL LAINE
M.Sc. (Econ.), born in 1964
SVP, Strategy, Cargotec Corporation, 2014–
Member of the Board since 2016
Member of the Audit Committee since 2016
Independent of the company and its major shareholders
Shareholdings in Aspo on December 31, 2022: 10,000
shares, or 0.03% of the total number of shares.
Aspo´s hybrid bond 2022: EUR 0.2 million.
No holdings or rights based on share-based incentive plans.
■
SALLA PÖYRY
D.Sc. (Econ.), CEFA, born in 1984
Chair of the Board, Procurator-Holding Oy, 2015–
Chair of the Board, Managing Director, Aspana Ab, 2021–
Member of the Board since 2016
Member of the Human Resources and Remuneration Com-
mittee since 2020
Member of the Audit Committee from 2016 to 2020
Independent of the company and its major shareholders
Shareholdings in Aspo on December 31, 2022: 1,000
shares, or 0.003% of the total number of shares,
held by related party Procurator-Holding Oy: 514,882
shares, or 1.64% of the total number of shares.
Aspo’s hybrid bond 2022: EUR 1.3 million held by related
party Procurator-Holding Oy
No holdings or rights based on share-based incentive plans.
■
TATU VEHMAS
Bachelor of Science, born in 1994
Chairman of the Board, AEV Capital Holding Oy, 2020–
CEO, TAAVi Capital Oy, 2020–
Member of the Board since 2018
Member of the Human Resources and Remuneration
Committee since 2019
Member of the Audit Committee since 2020 and in
2018–2019
Independent of the company, dependent on its major
shareholders
Shareholdings in Aspo on December 31, 2022: 42,790
shares, or 0.14% of the total number of shares,
held by related party AEV Capital Holding Oy: 3,253,554
shares, or 10.36% of the total number of shares.
Aspo’s hybrid bond 2022: EUR 1.5 million
No holdings or rights based on share-based incentive plans.
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ASPO’S YEAR 2022
Group Executive Committee
DECEMBER 31, 2022
■
ROLF JANSSON
M.Sc. (Eng.), M.Sc. (Econ.), born in
1969
CEO, Aspo Plc, 2021–
KEY WORK EXPERIENCE
President and CEO, VR-Group Ltd,
2016–2021
SVP, Logistics, VR-Group Ltd,
2011–2016
SVP, Corporate Development,
VR-Group Ltd, 2009–2011
Executive Director, Nordean Corporate
Finance, 2007–2009
Principal, Booz Allen Hamilton,
1999–2007
Senior consultant, Smg consulting,
1995–1999
KEY POSITIONS OF TRUST
Chair of the Board; NRC Group ASA,
ESL Shipping Ltd, Leipurin Plc,
Telko Ltd
Vice Chair of the Board; East Office
of Finnish Industries
Member of the Board; Sarlin Group
Oy Ab
Shareholding
Shareholdings in Aspo on December
31, 2022: 40,000 shares, or 0.13% of
the total number of shares.
Aspo’s hybrid bond 2022: EUR 0.1
million.
■
MIKKO HEIKKILÄ
M.Sc. (Tech.), born 1984
Vice President, Corporate Develop-
ment, Aspo Plc, 2021–
KEY WORK EXPERIENCE
Investment Manager, Onvest,
2019–2021
Management consultant, McKinsey &
Company, 2015–2019
Management consultant, Capacent Oy,
2012–2015
Development engineer, Konecranes
Corporation, 2010–2012
KEY POSITIONS OF TRUST
Member of the Board: Leipurin Plc
Shareholding
Shareholdings in Aspo on December
31, 2022: 4,098 shares, or 0,01% of
the total number of shares.
■
MATTI-MIKAEL KOSKINEN
M.Sc. (Econ.), born in 1972
Managing Director, ESL Shipping Ltd,
2013–
KEY WORK EXPERIENCE
Managing Director, Meriaura Ltd,
2007–2013
Chartering Manager, Deputy Managing
Director, Meriaura Ltd, 2004–2006
Consultant, The World Bank, 2004
Project researcher, Turku School of
Economics and Business Administra-
tion, 2003–2004
KEY POSITIONS OF TRUST
Chair of the Board: Finnish
Shipowners´ Association
Vice Chair of the Arctia Oy
Member of the Board: International
Chamber of Shipping, Finnish Water-
way Association, Finnish Coal info
Hiilitieto ry
Member, ICC Finland Business Council
Shareholding
Shareholdings in Aspo on December
31, 2022: 62,857 shares, or 0.20% of
the total number of shares.
■
ARTO MEITSALO
M.Sc. (Econ.), born in 1963
CFO, Aspo Plc, 2009–
Managing Director, Aspo Services Ltd,
2013–
KEY WORK EXPERIENCE
Managing Director (acting), Kauko Ltd,
2018–04/2019
President, Kauko-Telko Ltd, 2008
CFO, Kauko-Telko Ltd, 2007
Director, Kaukomarkkinat Ltd,
2005–2007
Group Controller, Kaukomarkkinat Ltd,
2002–2005
Financial Accountant, Bank of Finland,
1993–2002
Financial Accountant, Kaukomarkkinat
Ltd, 1989–1993
KEY POSITIONS OF TRUST
Chair of the Committee: Federation
of Finnish Commerce, Trade Policy
Committee
Vice Chair of the Board: Silmäsäätiö
Shareholding
Shareholdings in Aspo on December
31, 2022: 67,596 shares, or 0.22% of
the total number of shares.
■
MIKKO PASANEN
M.Sc. (Econ.), born in 1973
Managing Director, Telko Ltd., 2019–
KEY WORK EXPERIENCE
CEO, Onninen Oy, 2016–2018
Vice President, Kesko, 2010 – 2018
Country Director for Russia, Rauta-
kesko Oy, 2007–2010
CFO, Rautakesko Russia, 2005–2007
Management positions, Outokumpu
Copper Products, 2000–2005
KEY POSITIONS OF TRUST
Member of the Board: European
Association of Chemical Distributors
(FECC), The Association of Finnish
Technical Traders, Teknisen Kaupan
Palvelut-TKP Oy
Deputy Member of the Board: East
Office of Finnish Industries Oy
Shareholding
Shareholdings in Aspo on December
31, 2022: 39,904 shares, or 0.13% of
the total number of shares.
Aspo’s hybrid bond 2022: EUR 0.1
million.
■
TONI SANTALAHTI
LL.M, born in 1971
Director, Legal Affairs, Aspo Plc,
2017–
KEY WORK EXPERIENCE
Group Legal Counsel, Aspo Plc,
2009–2017
Administrative Manager/Corporate
Lawyer, Kauko-Telko Ltd, 2006–2009
KEY POSITION OF TRUSTt
Chair of the Board: Olarin Huolto Oy
Vice Chair of the Board: Tapiolan
Lämpö Oy
Shareholding
Shareholdings in Aspo on December
31, 2022: 22,927 shares, or 0.07% of
the total number of shares.
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ASPO’S YEAR 2022
Board members in Group companies
DECEMBER 31, 2022
■
ESL SHIPPING LTD
Rolf Jansson
Chair of the Board since 2021
Mikko Niini
M.Sc. (Tech.)
Board member: Navidom Oy,
Rauma Marine Constructions Oy
Member of the Board since 2012
Kimmo Nordström
Senior Adviser, Partner, Capstan Ltd
Member of the Board since 2016
Ulla Tapaninen
Ph.D.
Tenured Associate Professor, Tallinn University of Technol-
ogy
Member of the Board since 2012
■
LEIPURIN PLC
Rolf Jansson
Chair of the Board since 2021
Jukka Havia
M.Sc. (Econ.)
Chief Financial Officer, Evac Group
Member of the Board since 2014
Mikko Heikkilä
D.Sc. (Tech.)
Vice President, Corporate Development, Aspo Plc
Member of the Board since 2021
Kaisa Poutanen
D.Sc. (Tech.)
Chief Advisor, Nordic FoodTech Venture Capital
Member of the Board since 2014
Harri Sivula
M.Sc. (Admin.)
Board professional
Member of the Board 2010–2013 and since 2014
■
TELKO LTD
Rolf Jansson
Chair of the Board since 2021
Ralf Holmlund
M.Sc. (Econ.)
Board professional
Member of the Board since 2018
Elina Piispanen
M.Sc. (Econ.)
Board professional
Member of the Board since 2017
Mika Salokangas
M.Sc. (Econ.)
Board professional
Member of the Board since 2022
ASPO YEAR 2022 BUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATIONGOVERNANCE
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ASPO’S YEAR 2022
MANAGEMENT REPORT
ASPO’S OPERATING MODEL
Aspo seeks sustainable long-term growth by re-investing
earned profits in profitable investment objects and by tak-
ing steps towards a compounder profile. Aspo enables
growth for the businesses it owns and aims to improve
their profitability and returns by developing them and
ensuring steady cash flows. The goal is to assume an
even more active role in in mergers, acquisitions, and other
restructuring activities as well as in growth investments in
the owned businesses. Aspo focuses especially on B-to-B
industrial services, and its key clusters include logistics and
trade.
In 2022, Aspo’s reportable segments were ESL Ship-
ping, Leipurin and Telko. Other operations consist of Aspo
Group’s administration and the financial and ICT service
center.
COMPLEMENTARY REPORTS
Aspo Plc has released a separate 2022 Corporate Gov-
ernance Statement. In addition, Aspo releases a report
on non-financial information as required by the Finn-
ish Accounting Act in compliance with the provisions laid
down in regulation (EU) 2020/852 of the European Par-
liament and of the Council, in the form of its Sustainabil-
ity Report concurrently with this Management Report.
Both reports will be released on the company’s website at
www.aspo.com/en, and can also be found in Aspo’s Year
2022 report along with the Financial statements and Man-
agement report.
Management report 2022
■
ASPO GROUP’S KEY FIGURES
2022 2021 2020 2019 2018
Net sales, Group total, MEUR 652.6 586.4 500.7 587.7 540.9
Net sales from continuing operations, MEUR 643.4 573.3 474.3 587.7 540.9
Net sales from discontinued operations, MEUR 9.2 13.1 26.4
Operating profit, Group total, MEUR 31.2 33.9 19.3 21.1 20.6
Operating profit from continuing operations, MEUR 33.9 36.9 16.7 21.1 20.6
Operating profit from discontinued operations, MEUR -2.7 -3.0 2.6
Operating profit rate, Group total 4.8 5.8 3.9 3.6 3.8
Items affecting comparability, MEUR -24.1 -8.5
Comparable operating profit, Group total, MEUR 55.3 42.4 19.3 21.1 20.6
Comparable operating profit rate, Group total 8.5 7.2 3.9 3.6 3.8
Profit before taxes from continuing operations, MEUR 27.6 33.0 12.2 18.2 16.4
Profit before taxes from continuing operations, % 4.3 5.8 2.6 3.1 3.0
Profit for the period, MEUR 20.7 25.3 13.4 16.1 14.2
Profit from continuing operations, MEUR 23.5 28.3 10.8 16.1 14.2
Profit from discontinued operations, MEUR -2.8 -3.0 2.6
Earnings per share (EPS), EUR 0.61 0.76 0.39 0.47 0.42
EPS from continuing operations, EUR 0.70 0.86 0.30 0.47 0.42
EPS from discontinued operations, EUR -0.09 -0.10 0.09
Return on equity (ROE), % 15.2 20.8 11.4 13.5 12.4
Equity ratio, % 34.7 32.0 30.1 30.1 29.5
Gearing, % 108.4 131.0 149.0 162.2 154.4
Net cash from operating activities, MEUR 67.7 44.0 65.0 52.5 20.3
Free cash flow, MEUR 34.4 27.5 56.0 45.2 -34.8
Aspo Group has reported items affecting
comparability since 2021. Items affecting
comparability are explained on the next
page of this Management Report. Items
affecting comparability for 2018–2020
are explained below, and the figures pre-
sented in the key figures table have not
been adjusted regarding them.
Figures for 2018–2019 have not
been adjusted regarding discontinued
operations, i.e. the Kauko operating seg-
ment’s figures are included in the figures
of continuing operations for 2018–2019.
Figures for 2019 are affected by
the decision issued by the Administra-
tive Court in December 2019 to reduce
the additional taxes imposed on Telko
in 2015 which increased the financial
income, in particular, and improved earn-
ings per share by EUR 0.05.
Figures for 2018 include an impair-
ment loss of EUR 4.8 million recognized
on Kauko’s goodwill.
The comparability of the key figures
is affected by the adoption of IFRS 16 –
Leases on January 1, 2019.
Accounting principles for the key fig-
ures are presented on the last page of
the Management report.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
45
ASPO’S YEAR 2022
MANAGEMENT REPORT
EARNINGS
Aspo Group’s net sales from continuing operations increased significantly dur-
ing the financial year to EUR 643.4 (573.3) million. The comparable operating
profit for 2022 increased to EUR 55.3 (42.4) million, with the comparable oper-
ating profit rate being 8.5% (7.2%). Items affecting comparability, totaling EUR
-24.1 million, had a negative effect on the reported figures. They mostly con-
sisted of expenses associated with Russia’s invasion in Ukraine, and especially
of impairment losses resulting from the classification of Telko’s and Leipurin’s
operations in eastern markets as held for sale. The operating profit from contin-
uing operations was EUR 33.9 (36.9) million. Earnings per share from continu-
ing operations were EUR 0.70 (0.86).
In 2022, the net sales of ESL Shipping increased by 28% from the previous
year to EUR 245.4 (191.4) million. The comparable operating profit was the
highest in the company’s history at EUR 37.4 (26.8) million, with the compara-
ble operating profit rate being 15.2% (14.0%). Net sales of Telko remained at
the previous year’s level at EUR 267.4 (268.8) million. Telko’s comparable oper-
ating profit for 2022 was EUR 20.8 (21.2) million, with the comparable operat-
ing profit rate remaining strong at 7.8% (7.9%). Leipurin’s net sales increased
by 15% to EUR 130.6 (113.1) million in 2022. Leipurin’s comparable operating
profit for 2022 was EUR 3.3 (1.9) million, and the comparable operating profit
rate was 2.5% (1.7%).
In 2022, Aspo continued to report its net sales by market area with the fol-
lowing division: Finland, Scandinavia, the Baltic region, and eastern markets
(Russia, other CIS countries, and Ukraine). The eastern markets’ share of total
net sales continued to decrease during the fourth quarter of 2022, mainly due
to Russia’s invasion of Ukraine and Aspo’s decisions to downsize its operations
in Russia and withdraw from the market as planned. As a result of the with-
drawal from Russia, the division of Aspo’s main market areas will change at the
beginning of 2023. According to the previously announced strategy, the com-
pany will direct its growth investments at western markets. The share of the
market area of Russia, other CIS countries and Ukraine from Aspo’s net sales
decreased down to 13.2% during the final quarter.
In 2022, items affecting comparability totaled EUR -24.1 million, of which
EUR -20.7 million resulted from the impact of Russia’s invasion in Ukraine on
Aspo Group’s operations. Items affecting comparability relating to the Kauko
operating segment totaled EUR -2.5 million, and they are reported in the profit
from discontinued operations. Other items affecting comparability totaled EUR
-0.9 million.
The comparability of ESL Shipping’s operating profit was affected by sales
gains from the barge Espa and expenses associated with the suspended opera-
tions in Russia. Their net impact on the result was EUR 0.7 million.
The comparability of Telko’s operating profit was affected by the warehouse
destroyed in Ukraine, the impairment losses associated with companies in Rus-
sia and Belarus, and other costs arising from the withdrawal from Russia, total-
ing together EUR -13.5 million.
Items affecting the comparability of Leipurin’s operating profit totaled
EUR -8.1 million and were mainly related to the impact of Russia’s invasion in
Ukraine, the acquisition of Kobia AB, and the divestment of Vulganus Oy.
Items affecting the comparability in 2021, totaling EUR -8.5 million, included
the impairment loss of EUR -4.3 million recognized on Leipurin’s goodwill, and
the impairment loss and restoration provision of EUR -0.8 million recognized on
the fixed assets of Telko’s terminal in Rauma, as well as the impairment loss of
EUR -3.4 million recognized on Kauko’s goodwill, which is reported as part of
the profit from discontinued operations.
OPERATING ENVIRONMENT IN 2022
Aspo’s operating environment changed dramatically during the financial year
due to Russia’s invasion in Ukraine. The invasion caused considerable gen-
eral uncertainties in markets, lower consumer confidence, price inflation, higher
energy prices in particular, as well as significant fluctuations in prices and
exchange rates. The markets were also characterized by disruptions in logistics
flows and the low availability of certain products.
The war drastically weakens operating conditions in eastern markets as a
result of operational challenges and regulations. As a result of these challenges
and values in particular, Aspo decided already in spring to withdraw from all
operations in Russia and other selected eastern markets.
During the financial year, ESL Shipping’s all operations were suspended in
Russia, and the released vessel capacity was transferred to other operating
areas. In October, Telko signed a binding preliminary agreement on selling all
shares in its subsidiary in Russia, to GK Himik, a Russian industrial company. At
the end of 2022, Telko also signed a binding preliminary agreement on the sale
of its subsidiary in Belarus to a member of its current management. A binding
preliminary agreement was also signed after the end of the financial year on
the sale of Leipurin’s companies in Russia, Belarus and Kazakhstan.
The international sanctions and Russia’s legislative measures prevent the
transportation of goods and the transfer of payments which has reduced the
■
NET SALES BY MARKET AREA, CONTINUING OPERATIONS
2022
MEUR
2021
MEUR
Change
MEUR
Change
%
Finland 224.4 175.2 49.2 28.1
Scandinavia 137.6 109.4 28.2 25.8
Baltic countries 67.8 54.8 13.0 23.7
Russia, other CIS countries
and Ukraine 118.2 155.2 -37.0 -23.8
Other countries 95.4 78.7 16.7 21.2
Total 643.4 573.3 70.1 12.2
■
OPERATING PROFIT AND COMPARABLE OPERATING PROFIT,
GROUP TOTAL
MEUR 2022 2021
ESL Shipping, operating profit 38.1 26.8
Telko, operating profit 7.3 20.4
Leipurin, operating profit -4.8 -2.4
Other operations, operating profit -6.7 -7.9
Operating profit from continuing operations 33.9 36.9
Operating profit from discontinued operations -2.7 -3.0
Operating profit, Group total 31.2 33.9
Items affecting comparability -24.1 -8.5
Comparable operating profit, Group total 55.3 42.4
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
46
ASPO’S YEAR 2022
net sales and profitability of our operations in Russia. In addition, decreases in
the companies’ operations and personnel have reduced Russia’s role in Aspo’s
business operations. The operating environment is expected to become even
more challenging, and no rapid solution is in sight.
During the financial year, rising interest and inflation rates, as well as
weaker general economic estimates, affected consumers’ purchasing behav-
ior, for example, so that consumers have shifted from more expensive to more
affordable products.
The coronavirus pandemic continued to have an impact on Aspo’s operating
environment during the financial year. For example, the global shortage of com-
ponents, caused by the pandemic, had an impact on certain Aspo’s businesses,
decelerating trading and the completion of orders. During the year, the risk of
infections needed still to be taken into account in daily operations and espe-
cially among ESL Shipping’s crew members.
CASH FLOW AND FINANCING
In 2022, cash flow from operating activities was EUR 67.7 (44.0) million. The
cash flow of all key operations showed positive development during the finan-
cial year. The impact of the change in working capital on cash flow was EUR
-6.7 (-22.0) million. The increase in working capital mainly comes from the
advance payments for the vessels to be built in the ESL Shipping segment’s
vessel pool and the customer receivables accumulated through high sales at
the end of the year. This was partly compensated by the Telko segment’s work-
ing capital, which improved towards the year end. Free cash flow was EUR
34.4 (27.5) million. The investments of EUR 17.8 (15.9) million mainly included
the ESL Shipping segment’s dockages and Green Coaster advance payments. In
addition, cash flow from investing activities includes EUR -17.9 million in cash
outflow spent on the acquisitions of Kobia, Mentum and Johan Steenks and a
total of EUR 2.8 million cash inflow received from the sale of Espa and Vulga-
nus as the most significant items.
NET INTEREST-BEARING DEBT
MEUR 2022 2021 2020
Interest-bearing liabilities, including lease
liabilities 189.2 187.3 201.4
Cash and cash equivalents 33.5 17.7 32.3
Net interest-bearing debt 155.7 169.6 169.1
Net interest-bearing debt decreased to EUR 155.7 (169.6) million and gearing
fell to 108.4% (131.0%) during the financial year. The Group’s equity ratio at
the end of the financial year was 34.7% (32.0%). The balance sheet strength-
ened as a result of improved profitability and the new hybrid bond issued in
June.
Net financial expenses in 2022 totaled EUR -6.3 (-3.9) million. Exchange rate
fluctuations, especially the strengthened value of the Russian ruble, increased
financial expenses by EUR 1.6 million from the previous year. The average
interest rate of interest-bearing liabilities, excluding lease liabilities, was 3.3%
(1.4%).
The Group’s liquidity position remained strong during the financial year. Cash
and cash equivalents stood at EUR 33.5 (17.7) million at the end of the finan-
cial year, of which cash and cash equivalents related to businesses classified as
held for sale were EUR 11.8 million. Committed revolving credit facilities, total-
ing EUR 40 million, were completely unused, as in the previous year. Aspo’s
EUR 80 million commercial paper program was also completely unused (EUR 5
million used at the end of 2021).
During 2022, Aspo extended its maturity structure for interest-bearing
loans. In September, AtoBatC Shipping signed an EUR 32.2 million loan agree-
ment with Svenska Skeppshypotek. The loan’s maturity is 15 years, and it has
not yet been withdrawn. A ten-year loan agreement of EUR 20 million was
signed in June with the Nordic Investment Bank, of which EUR 19.6 million
have been withdrawn. These loans provide funding for ESL Shipping’s invest-
ment in a series of six new highly energy-efficient electric hybrid vessels. The
project was launched in September 2021. In addition, Aspo restructured a bilat-
eral bank loan of EUR 20 million, about to mature in 2023, with a new bilat-
eral revolving credit facility which will mature in 2025. The loan agreement also
includes two options for a one-year extension.
In June, Aspo issued a new EUR 30 million hybrid bond, whose coupon rate
is 8.75% per annum. The hybrid bond has no maturity, but the company may
exercise an early redemption option in June 2025 at the earliest. Aspo’s earlier
hybrid bond of EUR 20 million was redeemed on May 2, 2022.
FINANCIAL TARGETS
Aspo’s financial targets announced on December 1, 2021:
• Net sales growth: 5–10% a year
• Operating profit: 8%
• Return on equity: more than 20%
• Gearing: less than 130%
With regard to Aspo’s businesses, ESL Shipping’s operating profit target is
14%, Telko’s 8% and Leipurin’s 5%.
In 2022, the Group’s targets were reached well overall. Aspo Group’s net
sales increased by 11%. The comparable operating profit rate was 8.5%
(7.2%), clearly exceeding the target level of 8.0%. Return on equity remained
at 15.2% (20.8%) due to the items affecting comparability of EUR -24.1 million
that mainly consisted of additional costs and impairment losses arising from
Russia’s invasion of Ukraine, and whose negative impact on return on equity
was roughly 15.6 percentage points. Aspo’s gearing decreased to 108.4%
(131.0%), well below the target level.
EVENTS AFTER THE FINANCIAL YEAR
In January 2023, Leipurin signed a binding preliminary agreement to sell all
shares in its subsidiaries in Russia, Belarus and Kazakhstan to Timur Akhiyarov.
Russian-born Akhiyarov will invest in Leipurin’s operations in eastern markets
as a private investor. The sales price is approximately EUR 8.4 million. Rights to
Leipurin’s name and trademarks are not included in the transaction. The trans-
action still needs to be approved by the local authorities.
The Belarusian subsidiaries of Telko and Leipurin have been added to the list
of companies whose transfer of shares are prohibited by a decision issued by
the Council of Ministers of Belarus at the end of January 2023. Because of this,
it is deemed unlikely that the sale of Telko’s Belarusian business would pro-
ceed. This does not change Aspo Group’s previously published assessment of
the financial effects of the divestment. Leipurin’s Belarusian subsidiary is part
of an agreement according to which the share capitals of Leipurin’s subsidiaries
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
47
ASPO’S YEAR 2022
in Russia, Belarus and Kazakhstan would be sold to the same buyer. The deci-
sion of the Council of Ministers of Belarus does not change the previously pub-
lished assessment of the financial effects of the transaction, nor does it pre-
vent the sale of Leipurin’s Russian and Kazakh subsidiaries.
In January 2023, Telko acquired the Polish distribution company Eltrex.
Eltrex is a distributor of speciality chemicals and industrial packaging materials,
and its annual net sales are roughly EUR 8 million and operating profit slightly
less than EUR 1 million.
In February 2023, Leipurin agreed on the sale and leaseback of its ware-
house property in Gothenburg. The property was transferred to Leipurin’s own-
ership in conjunction with the acquisition of Kobia on September 1, 2022. The
buyer of the property is Revelop, a Swedish real estate investor. As a result
of the sale and leaseback transaction, Aspo recognizes a sales gain of approx-
imately EUR 0.4 million. According to the terms and conditions of the agree-
ment, Leipurin leases the property for five years. The transaction is close to
cost neutral, as the depreciation expense of the assets owned will be replaced
by depreciation and interest expense for the leased assets of similar size.
OUTLOOK FOR 2023
General market uncertainties have continued even after the coronavirus pan-
demic. Russia’s armed invasion in Ukraine caused a collapse in eastern markets,
especially concerning Russia, rapid restrictions on the free movement of cap-
ital, and a significant decrease in goods transportation. As a result of the sig-
nificant decrease in eastern markets, Aspo has directed its operations to west-
ern markets and other regions outside Aspo’s eastern markets. Demand and
growth are expected to remain moderate in these regions, albeit there are dif-
ferences in business-specific outlook. Supply chains have become susceptible to
disruptions globally and the availability of raw materials may decrease because
of Russia’s invasion and the coronavirus pandemic.
Inflation and price increases may shift demand to products whose profit
margins are lower, therefore having a negative impact on profitability. Infla-
tion is not expected to continue its rapid increase, and the price development is
expected to stabilize in a moderate increase.
Demand may fluctuate in different industrial sectors, while the largest sec-
tors will add stability to volumes and also stabilize prices at best. Aspo’s cus-
tomers acquiring raw materials and other production inputs from a larger geo-
graphic area may increase demand for transportation solutions in particular.
Russia’s invasion in Ukraine seems to continue and, even though it is not
expected to expand outside Ukraine, its negative impact may extend to com-
mercial operations. However, the year is expected to be good for Aspo, regard-
less of the circumstances.
GUIDANCE FOR 2023
Aspo Group’s comparable operating profit will be higher than EUR 35 (2022:
55.3) million in 2023.
ASPO’S BUSINESS OPERATIONS
ESL Shipping
ESL Shipping is the leading dry bulk sea transportation company operating in
the Baltic Sea area. ESL Shipping’s operations are mainly based on long-term
customer contracts and established customer relationships. At the end of the
financial year, the shipping company’s fleet consisted of 41 vessels with a total
capacity of 425,000 dwt. Of these, 23 were wholly owned (80% of the ton-
nage), two were minority owned (2%) and the remaining 16 vessels (18%) were
time chartered. ESL Shipping’s competitive edge is based on its pioneering role
and ability to responsibly secure product and raw material transportation for
industries and energy production year-round, even in difficult conditions. The
shipping company loads and unloads large ocean liners at sea as a special ser-
vice.
ESL Shipping 2022 2021 2020
Net sales, EUR million 245.4 191.4 148.4
Operating profit, MEUR 38.1 26.8 7.6
Operating profit, % 15.5 14.0 5.1
Items affecting comparability, MEUR 0.7
Comparable operating profit, MEUR 37.4 26.8 7.6
Comparable operating profit, % 15.2 14.0 5.1
ESL Shipping’s net sales increased from the comparative period by 28% to
EUR 245.4 (191.4) million. The comparable operating profit was the highest in
the company’s history at EUR 37.4 (26.8) million, with the comparable operat-
ing profit rate being 15.2% (14.0%). Operating profit rate clearly exceeded the
long-term target of 14%. The items affecting comparability of EUR 0.7 million
included EUR 1.5 million in sales gains from the barge Espa and EUR -0.8 mil-
lion in expenses associated with the suspended operations in Russia.
High demand in the ESL Shipping’s main market areas throughout the year,
the shipping company’s long-term partnership strategy and the successful oper-
ations of the onshore and offshore personnel enabled the excellent results.
The profitability of all the shipping company’s vessel categories was his-
torically strong. Demand and profitability in ESL Shipping’s all customer seg-
ments remained high throughout the year. In contract traffic, demand for ton-
miles remained high, and cargoes in spot markets were at a good level. Prices
of spot markets started to decrease and demand to show signs of deceleration
towards the end of the year. The energy industry was an exception, with its
demand remaining high. Due to the exceptional situation involving the security
of supply, the low availability of biofuels and longer transportation distances,
the percentage of energy coal from all transportation operations increased sig-
nificantly during the latter half of the year.
The shipping company’s financial performance was excellent, especially con-
sidering the discontinuation of cargo transportation from Russia as a result of
Russia’s invasion in Ukraine and related sanctions. ESL Shipping suspended its
operations in Russia during the second quarter, after which it no longer had any
transportation obligations from Russian ports or for customers and cargoes
linked closely to Russia. The released vessel capacity was transferred to other
operating areas, in which the need for transportation capacity increased after
raw material deliveries shifted away from Russia and transportation distances
became longer. ESL Shipping suspended the operations of its previously estab-
lished Russian company and will eventually divest the company in accordance
with the requirements of local legislation.
In 2022, ESL Shipping achieved a significant strategic and structural interim
goal when its Swedish subsidiary AtoBatC Shipping AB established a long-term
Green Coaster pool for energy-efficient electric hybrid vessels with a group of
institutional and private investors. The pooling structure is a commonly used
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
48
ASPO’S YEAR 2022
practice in international shipping operations for the ownership and operation of
vessels.
The Green Coaster pool will accelerate the shipping company’s operational
growth and improve its profitability and return on equity. The pool also marks
the first phase in the shipping company’s new low carbon growth strategy, uti-
lizing funding by investors and the pooling structure. AtoBatC Shipping AB has
ordered a total of twelve next-generation electric hybrid vessels, with every
other vessel being sold to the company established by the investor group. The
first four new vessels are already under construction, and the first vessel is to
be delivered during fall 2023. AtoBatC Shipping AB, ESL Shipping’s subsidiary,
acts as the manager of the pool to be established and provides comprehensive
services for the building and maintenance of the vessels following the turnkey
principle.
Outlook 2023 for ESL Shipping
General macroeconomic uncertainties have increased in ESL Shipping’s main
market areas. Higher inflation and slower economic growth increase demand
and pricing pressures among the shipping company’s main customers. Finland’s
labor market may experience unrest during the spring, and its impact through
overtime bans and strikes may be significant on key customers and especially
on the effectiveness of the transport chain.
Global demand estimates in sea transportation markets and price levels of
spot markets have decreased considerably from the previous year. On the other
hand, the availability of vessel capacity suitable for round-the-year operations in
the Baltic Sea is limited. Production volumes of ESL Shipping’s main customers
are expected to be satisfactory, albeit slightly lower than in the previous year.
Demand for energy deliveries outside Finland is expected to remain high during
the first half of the year. In the forest industry, pulp delivery volumes are look-
ing positive, but only satisfactory for sawn goods. Volumes are looking satis-
factory in the steel industry. Now that deliveries of Russian raw materials have
stopped, some of the shipping company’s significant contractual customers are
forced to seek new suppliers for part of their production input required in new
geographic areas. Not all of these procurement routes have yet become stabi-
lized which may cause an imbalance in ESL Shipping’s operations. The role of
energy coal transportation is expected to decrease significantly when the secu-
rity of supply situation returns to normal and demand shifts towards other
energy forms.
The majority of the shipping company’s transportation capacity has been
secured through long-term agreements with the exception of the Supramax
vessels. Currently, the expectations of the lessors of the time-chartered vessels
do not meet the realities in the shipping company’s main market areas which
may cause further uncertainties in the availability of a suitable and sufficient
tonnage. The impact of rising energy prices on ESL Shipping’s costs is compen-
sated effectively through fuel clauses in long-term transportation agreements.
The shipping company’s investments in energy-efficient vessels will
strengthen its competitiveness and market position in the future. ESL Shipping
will continue the development of a fossil-free sea transportation ecosystem
in line with the green transition and the vessels designed for it in cooperation
with its key customers. The shipping company is participating in projects aimed
to produce green hydrogen through renewable electricity and to further process
it as fossil-free fuel for the shipping company’s vessels.
Telko
Telko is a leading expert in and supplier of plastic raw materials, industrial
chemicals and lubricants. It operates as a sustainable partner in the value chain,
bringing well-known international principals and customers together. Its com-
petitive edge is based on strong technical support, efficient logistics and local
expert service. Telko operates in Finland, the Baltic countries, Scandinavia,
Poland, Romania, Russia, Belarus, Ukraine, Kazakhstan, Uzbekistan, and China.
In October 2022, Telko signed a binding preliminary agreement on selling all
shares in its subsidiary in Russia to GK Himik, a Russian industrial company. In
December, Telko finalized the preliminary agreement to sell all shares in its sub-
sidiary in Belarus to a member of its current management. Both business trans-
actions still need to be approved by the local authorities.
Telko 2022 2021 2020
Net sales, EUR million 267.4 268.8 224.9
Operating profit, MEUR 7.3 20.4 12.6
Operating profit, % 2.7 7.6 5.6
Items affecting comparability, MEUR -13.5 -0.8
Comparable operating profit, MEUR 20.8 21.2 12.6
Comparable operating profit, % 7.8 7.9 5.6
Telko’s net sales for the financial year remained at the previous year’s level at
EUR 267.4 (268.8) million. The full-year comparable operating profit of EUR
20.8 million was only slightly lower than the previous year’s record-high compa-
rable operating profit (EUR 21.2 million). The comparable operating profit rate
remained high at 7.8% (7.9%). The items affecting comparability of EUR -13.5
million included EUR -2.6 million relating to the destroyed warehouse in Ukraine
and EUR -10.9 million relating to the impairment losses associated with com-
panies in Russia and Belarus, and other expenses arising from the withdrawal
from Russia.
Towards the end of the year, net sales and operating profit decreased com-
pared to 2021, especially due to the poor development and negative results of
operations in Russia. Operations in Ukraine also decreased significantly from
the previous year. In addition to the items affecting comparability, exchange
rate losses and expenses associated with corporate restructuring had a nega-
tive impact on the operating profit.
Of Telko’s business areas, the net sales of the plastics business and the
chemicals business decreased slightly in 2022. Instead, the lubricants business
increased by 30.4% which can largely be explained by high price levels and the
acquisition of Mentum AS, which was completed at the end of 2021.
In recent years, Telko has consistently reduced the proportion of volume
products and increased that of specialty products, as a result of which its tol-
erance of price fluctuations is better than before. According to its strategy,
Telko seeks to accelerate its growth through acquisitions in addition to organic
growth.
Telko completed the acquisition of the operations of the Norwegian com-
pany Johan Steenks AS in October. Johan Steenks is a distributor of technical
plastic raw materials and additives for plastics, and it has an established cus-
tomer base in the Norwegian markets and a number of well-known principals.
The company’s annual net sales are approximately EUR 5 million.
Outlook 2023 for Telko
Telko has agreed to divest its operations in Russia and Belarus. Telko’s net
sales in Russia and Belarus stood at EUR 58.0 million in 2022, comprising 22%
of Telko’s total net sales in 2022. Both sales transactions require approval
from the local authorities. The transaction in Russia is expected to be com-
pleted during the first quarter of 2023, but there is uncertainty involved.
In 2023, Telko’s net sales and results will be significantly lower than in the
previous year due to the changed situation in Russia, Belarus and Ukraine. In
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49
ASPO’S YEAR 2022
other countries, demand is expected to remain moderate, even though there
will be differences between business areas.
The prices of plastics and chemicals decreased steeply during the latter half
of 2022, while still being clearly above the long-term average. It is assumed
that the most significant price corrections took place during 2022, but the
prices are expected to decrease slightly during the first half of the year if
energy prices do not experience a considerable increase. In high added value
products, on which Telko focuses in accordance with its strategy, price changes
are typically more moderate. Significant changes in prices have a short-term
impact on margins. Demand for lubricants is expected to remain stable, and
prices are expected to increase at least during the first half of 2023.
In western markets, demand will involve uncertainties during the first part
of 2023. Demand indices have decreased in the construction and automotive
industries in Europe. High energy prices and inflation rates will affect demand
during the next few months, in particular. At the end of the year, demand will,
above all, be affected by the general development of purchasing power in
Europe. The lifting of coronavirus restrictions in China is expected to increase
local demand. In addition, higher demand in China may have an impact on global
price development during the first part of the year. In Central Asia, demand is
expected to remain relatively high. Sales in Ukraine will be lower during the first
half of the year than in the previous year, while they are expected to be at the
2022 level during the rest of the year, depending completely on the develop-
ment of the war.
Telko will continue its activities to improve its operational efficiency and scal-
ability. Inflation causes general increases in costs. On the other hand, cargo
expenses, especially in Asia, will be materially lower than in the previous year.
Leipurin
Leipurin operates as part of the food chain, acquiring raw materials in global
markets and from domestic companies and supplying them through its effec-
tive logistics chain according to customer needs. Leipurin operates in nine coun-
tries that have been grouped into four business units, each being responsi-
ble for their financial performance: Finland, Sweden, Baltics, and East. Leipurin
serves bakery, food industry and foodservice customers by providing raw mate-
rials and by supporting research and development and recipes for new prod-
ucts. The Leipurin segment’s other product categories include various supplies
and machines for the same customer segments. The Leipurin segment uses
leading international manufacturers as its raw material and machinery supply
partners.
Leipurin is in the process of withdrawing from its operations in Russia, Bela-
rus and Kazakhstan. In January 2023, Leipurin signed a binding preliminary
agreement to sell its subsidiaries in these countries to a private investor. The
transaction still needs to be approved by the local authorities.
Leipurin 2022 2021 2020
Net sales, EUR million 130.6 113.1 101.0
Operating profit, MEUR -4.8 -2.4 1.4
Operating profit, % -3.7 -2.1 1.4
Items affecting comparability, MEUR -8.1 -4.3
Comparable operating profit, MEUR 3.3 1.9 1.4
Comparable operating profit, % 2.5 1.7 1.4
During the financial year, Leipurin’s operations were affected by the restrictions
in eastern markets due to Russia’s invasion of Ukraine, the high price inflation
in global raw material markets, and challenges related to the availability of raw
materials.
On September 1, 2022, Leipurin acquired all shares in Kobia AB, a Swedish
distributor in the bakery industry, from the Swedish Abdon Group. The acqui-
sition expands Leipurin’s operations geographically in markets in Northern
Europe. Annually, Kobia’s net sales are close to EUR 50 million, and its operat-
ing profit rate is roughly 3%. The acquisition strengthens Leipurin’s position as
the leading player in the Baltic Sea region.
In 2022, Leipurin’s net sales grew by 15% to EUR 130.6 (113.1) million. The
acquisition of Kobia AB increased net sales by EUR 17.3 million. Figures for
the comparative year included EUR 11.4 million in net sales of the discontinued
machinery business in Russia and divested Vulganus Oy, which were EUR 7.1
million higher than in 2022, but the increase in raw material sales in western
markets was particularly strong year-on-year. The steep increase in raw mate-
rial prices in global markets had a significant impact on the euro-denominated
increase in sales.
Leipurin’s comparable operating profit for 2022 was EUR 3.3 (1.9) million,
and the comparable operating profit rate was 2.5% (1.7%). Items affecting
comparability, totaling EUR -8.1 (-4.3) million, were mainly related to the impact
of Russia’s invasion in Ukraine, the acquisition of Kobia, and the divestment of
Vulganus. The impairment loss recognized on goodwill affected the comparabil-
ity of the comparative period. Due to these items, the operating profit was neg-
ative at EUR -4.8 (-2.4) million.
In June, Vulganus Oy was sold to KÖNIG Maschinen GmbH, the leading man-
ufacturer of bakery machines in Austria. The loss arising from the divestment
and the expenses related to it, totaling EUR -0.4 million, are reported under the
Leipurin segment’s other operating expenses.
Outlook 2023 for Leipurin
The war in Ukraine and the decision to withdraw operations from Russia, Bela-
rus and Kazakhstan will have a significant impact on Leipurin’s net sales and
results. Leipurin’s net sales in Russia, Belarus and Kazakhstan stood at EUR
24.7 million in 2022, comprising 19% of Leipurin’s total net sales in 2022.
The divestment of eastern operations still needs to be approved by the local
authorities. Leipurin expects the transaction to be completed during the first
half of 2023, but there is uncertainty involved.
The expansion to Sweden through the acquisition of Kobia AB will increase
Leipurin’s annual net sales by roughly EUR 50 million and produce considera-
ble synergy benefits in the development of the product range, and in the sup-
ply chain and procurement. It also enables partners to be served in a larger geo-
graphic area.
Inflation and the rising energy prices, in particular, have a negative impact on
demand for more expensive products, potentially presenting profitability chal-
lenges among the bakery segment’s customers. The decreased purchasing
power may have a negative impact on demand for artisanal bakeries, as con-
sumers prefer more affordable products.
The upward trend is expected to continue in the prices of main raw material
categories, even though the rapid inflation during 2022 is expected to deceler-
ate considerably. This is expected to take place during the first half of 2023.
Despite these challenges, Leipurin sees that the market will offer a highly
stable environment in the long term and also opportunities for organic growth
in selected market segments.
The impact of Russia’s invasion in Ukraine and the coronavirus pandemic on
global supply chains, the availability of certain raw materials and general deliv-
ery times will continue. The management of payment defaults and claims has
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
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ASPO’S YEAR 2022
succeeded well at present. Profitability challenges will increase risks of payment
defaults and bankruptcies among customers and suppliers.
STRUCTURAL ARRANGEMENTS
In the ESL Shipping segment, the operations of Norra Skeppnings Gruppen AB
were divested on December 1, 2022.
Telko Norway AS acquired the operations of Johan Steenks AB on Octo-
ber 3, 2022. Mentum AS was merged into its parent company Telko Estonia
OÜ. Before the merger, Mentum’s branches in Latvia and Lithuania were sold
through intragroup transactions to Telko UAB in Lithuania and Telko SIA in Lat-
via.
On September 1, 2022, Leipurin acquired all shares in Kobia AB, a Swedish
distributor in the bakery industry, from the Swedish Abdon Group. Leipurin sold
Vulganus Oy to KÖNIG Maschinen GmbH on June 30, 2022. In addition, Leipurin
Plc acquired two dormant companies LT HC One Oy and LT HC Two Oy for cor-
porate restructuring in eastern markets.
Kauko Oy was sold to Signal Partners Oy on October 31, 2022. Kauko GmbH
is in the process of being dissolved, and its operations have been discontinued.
INVESTMENTS
In 2022, Aspo Group’s investments totaled EUR 17.8 (15.9) million. The invest-
ments mainly consisted of the dockage of ESL Shipping’s vessels and advance
payments for the Green Coaster vessels.
■
INVESTMENTS
MEUR 2022 2021 2020
Investments in tangible and intangible assets 17.8 15.9 4.7
Advance payments for the Green Coaster vessels to be sold further have been
recognized in inventories. At the end of the financial year, inventories included
EUR 10.2 million in advance payments for the Green Coaster vessels.
PERSONNEL
The employee benefit expenses within the Group in 2022 amounted to EUR
54.4 (50.7) million. Salaries and fees during the financial years 2022 and 2021
represent the amounts of continuing operations and hence do not include the
share of Kauko operating segment. More detailed information about the person-
nel is presented in Aspo’s Sustainability Report.
■
PERSONNEL
2022 2021 2020
Number of personnel, December 31 886 944 896
Average number of personnel 914 911 852
Salaries and fees during the financial year,
MEUR 46.0 42.5 36.2
REMUNERATION
Share-based incentive plan 2022–2024
On February 16, 2022, Aspo Plc’s Board of Directors decided to establish a new
share-based incentive plan for 2022–2024. The aim of the plan is to combine
the objectives of the shareholders and key employees in order to increase the
value of the company in the long term, to retain key employees in the company,
and to offer them a competitive reward plan based on earning and accumulating
the company’s shares.
The share-based incentive plan consists of three earnings periods, with the
earned reward being based on the Group’s earnings per share (EPS) and two
sustainability indicators. Participation in the scheme and obtaining rewards
require that participants allocate the freely transferable company shares they
hold to the plan or acquire the company’s shares up to the quantity determined
by the Board of Directors.
The share-based incentive plan is directed at a maximum of 30 people,
including the members of the Group Executive Committee. The potential reward
will be paid partly in the company’s shares and partly in cash in 2023, 2024 and
2025. The rewards payable based on the plan correspond to a maximum total
value of 400,000 Aspo Plc shares, also including the proportion to be paid in
cash.
For the 2022 earnings period, the targets were met at 90% overall.
Share-based incentive plan 2021–2023
On February 11, 2021, Aspo’s Board of Directors decided to continue the share-
based incentive plan for the Group’s key personnel by establishing a share-
based incentive plan for 2021–2023. The aim of the plan is to combine the
objectives of the shareholders and key employees in order to increase the value
of the company in the long term, to retain key employees in the company, and
to offer them a competitive reward plan based on earning and accumulating the
company’s shares. The share-based incentive plan is directed at around 20 peo-
ple, including the members of the Group Executive Committee.
The EPS target, acting as an earnings criterion for the share-based incen-
tive plan, was fully met during the 2021 financial year. In March 2022, based on
the share-based incentive plan, a total of 89,400 treasury shares were trans-
ferred, and an amount equaling the value of the shares was paid in cash to
cover taxes.
Share-based incentive plan 2020
In June 2022, Aspo’s Board of Directors granted 20,000 Aspo shares to Aspo’s
CEO Rolf Jansson based on the share-based incentive plan for 2020 and
the conditions of the CEO’s contract of service. 10,000 of the shares and an
amount of cash equaling their value to cover taxes were transferred in June and
at the same time, Jansson acquired 10,000 shares from the market at his own
expense in accordance with the contract. A second transfer of equal quantity
will take place in 2023.
RESEARCH AND DEVELOPMENT
Aspo Group’s R&D focuses, according to the nature of each segment, on devel-
oping operations, procedures and products as part of the customer-specific
operations, which means that the development inputs are included in other
operating expenses and are not capitalized.
SUSTAINABILITY
Aspo’s businesses aim to be pioneers in sustainability in their respective sec-
tors. Sustainability is a key factor in guiding our management system and the
process of investigating new investment objects.
Key sustainability themes have been defined for Aspo’s businesses:
• Increasing our business operations, while reducing their environmental loads
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
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ASPO’S YEAR 2022
• Improving the Aspo experience for people in our value chain
• Advancing the practices of good governance at all levels
Aspo’s different businesses partly have highly different focus areas in their sus-
tainability. ESL Shipping has actively reduced its environmental footprint by
minimizing its fleet’s emissions and energy consumption. The operations of Lei-
purin focus on product safety, and the reduction of waste and wastage. Prod-
uct safety is also essential for Telko, which acts as a link between industrial
customers and international raw material manufacturers. Aspo’s Code of Con-
duct defines a common set of rules for responsible business in all the Group’s
subsidiaries.
Key focus areas for the Group include reducing emission intensity and
improving occupational safety. These targets showed positive development
in 2022 when both emission intensity and the accident frequency decreased
from the previous year. In terms of environmental responsibility, we are rapidly
approaching the target set for 2025 to reduce emission intensity by 30% from
the level of 2020. In addition, approximately 100% of the Group’s all employ-
ees completed Code of Conduct and Compliance trainings during the year,
including anti-corruption issues and provides guidance for identifying any sus-
picious situations and practices considered unethical. More information about
the progress Aspo and its businesses have made in sustainability is available
in Aspo’s 2022 Sustainability Report. Aspo’s businesses will also publish their
own sustainability reports at the beginning of 2023.
In 2022, the development of Aspo’s sustainability program continued on
several fronts. For example, we prepared a new sustainability policy and inte-
grated the Group’s sustainability goals into Aspo’s remuneration scheme. We
also invested in a new Group-wide sustainability reporting platform, which we
believe will develop the reporting capabilities of our businesses and intensify
the monitoring of targets. The new reporting platform has been deployed in all
our businesses, and it will also assist in reporting in accordance with the EU’s
upcoming corporate sustainability reporting directive. In addition, we continued
to investigate the impact of the EU taxonomy for sustainable activities on the
Group’s businesses and reporting practices.
REPORTING IN ACCORDANCE WITH THE EU TAXONOMY
The EU taxonomy is a classification system for environmentally sustainable
economic activities. It is a framework for directing investments at more sus-
tainable activities through six environmental objectives, ‘do no significant harm’
(DNSH) criteria, minimum social safeguards, and detailed technical screening cri-
teria. Aspo releases information about environmentally sustainable economic
activities in accordance with the non-financial reporting directive (NFRD) as
defined in the EU taxonomy.
At this stage, only the economic activities that have the highest need and
potential to have a significant impact on climate change mitigation and adap-
tation are within the scope of the taxonomy regulation. According to Aspo’s
interpretation, a large part of its business activities, meaning the operations of
Telko and Leipurin, are not within the scope of the EU taxonomy, as their com-
mercial activities are not included in the group of high emission sectors. Telko
is a distributor of plastics, chemical raw materials and lubricants, while Leipurin
is a distributor of the raw materials and supplies required by bakeries and the
food industry in their production operations. However, Aspo has identified activ-
ities that are eligible under the taxonomy and those that are aligned with the
taxonomy.
We support the transition to fossil-free transportation and invest in tech-
nologies that help our customers acquire their logistics chains and make their
products carbon-neutrally. ESL Shipping, which operates in the sensitive Bal-
tic Sea and the Arctic, has eligible and aligned activities. With regard to the tax-
onomy’s environmental objectives, ESL Shipping’s aligned activities contribute
to climate change mitigation. Key development areas include vessels, in which
we invest significantly on our way towards fossil-free transportation and to pre-
vent the spread on invasive alien species through ballast water. We have set
strict targets to reduce our carbon footprint: ESL Shipping’s goal is to reduce
carbon intensity by 50% per ton-mile by 2030 and generate zero carbon diox-
ide emissions by 2050.
The European Commission issued its most recent and comprehensive
instructions for the application of the taxonomy in December 2022 (Draft Com-
mission Notice on the interpretation and implementation of certain legal provi-
sions of the EU Taxonomy Climate Delegated Act & Draft Commission notice
on the interpretation and implementation of certain legal provisions of the Dis-
closures Delegated Act under Article 8 of EU Taxonomy Regulation). Our inter-
pretation of how taxonomy information is to be published is based on the
instructions given and the preparatory work we carried out in 2021 and 2022.
We also interpreted the instructions at the beginning of 2023 assisted by spe-
cialists, and we will apply them to the 2022 report. As a rule, our interpretation
of eligibility and alignment is based on the taxonomy regulation and the com-
plementary climate delegated act, as well as the technical criteria defined in
them: 1) substantial contribution to climate change mitigation/adaptation; and
2) DNSH criteria. In addition, we have assessed compliance with the minimum
safeguards in our activities.
We lead the way in sustainability in our respective fields. We are the driver
of change and reshape our industries by changing our own activities and, there-
fore, by guiding the market to make similar changes.
Aspo’s Sustainability Report is published annually, similarly to the responsi-
bility reports of our businesses. They include information about how the envi-
ronment is addressed in our business activities.
Minimum safeguards
Aspo assesses the minimum safeguards at Group level, while applying all
related principles to each of its businesses. We have assessed the minimum
safeguards relative to human rights, bribery and corruption, taxation, and fair
competition as part of the EU taxonomy regulation and in relation to the Final
Report on Minimum Safeguards of the EU Platform on Sustainable Finance. As
a result of the assessment, Aspo considers that all its aligned activities meet
the criteria used.
Aspo’s Code of Conduct, commitment to the principles of the UN Global
Compact, training completed by each employee, and Aspo’s other guidelines
set a framework for the principles and requirements that are expected from
Aspo’s all employees and partners. According to the UN Global Compact, we
abide by its principles related to human rights, working life, the environment
and anti-corruption. In addition, Aspo respects and follows internationally rec-
ognized standards on human and workers’ rights.
Aspo uses a whistleblower channel in accordance with the EU whistleblower
protection directive, and it can be used by any member of the personnel. All
cases reported to the channel are processed anonymously and confidentially.
The severity of cases is assessed by a small and limited group, which decides
on further measures. In addition, whistleblowers are protected by all means
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
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ASPO’S YEAR 2022
necessary. All cases are listed and reported to Aspo’s Audit Committee. Cases
are investigated and, if required, a limited group is used to implement corrective
measures. Any reports received from outside the channel are processed with
the same diligence and confidentiality as reports received through it.
Minimum safeguards – human rights
Aspo is committed to the UN Global Compact initiative, the first two principles
of which concern human rights. Aspo also approves human rights due diligence
(HRDD) commitments and has included the principles applied in its policies,
guidelines and personnel training.
In Aspo’s Compliance and Code of Conduct trainings, members of the per-
sonnel are trained to identify any adverse impact on human rights questions
and situations where human rights may be violated. Furthermore, Aspo’s busi-
nesses assess their customers and suppliers, and they have been instructed to
end a business relationship if any violations are discovered. The principles have
been described extensively in Aspo’s Code of Conduct, they are tested in per-
sonnel training, and they apply to all our employees, job applicants and subcon-
tractors.
In addition to training, any measures taken and possible violations are com-
municated internally. If a potential violation is considered to have a broad
impact on the market or the value of Aspo’s shares, it will be communicated in
accordance with stock exchange rules. All supervisors must instruct, supervise
and support their teams so that they can work safely. The content of training is
based on the Code of Conduct approved by Aspo’s Board of Directors and the
principles mentioned above.
Our businesses continuously audit supply chains to assess measures related
to the minimum safeguards, including human rights. Aspo has never been con-
victed of any human rights violations.
Minimum safeguards – anti-corruption and fair competition
The personnel’s Compliance training also includes an anti-corruption mod-
ule. Before providing regular training, Aspo already combated corruption in all
its market areas by adopting zero tolerance. Aspo’s businesses have rejected
transactions in markets in which business operations would have required activ-
ities in breach of Aspo’s Code of Conduct. We do not accept corruption or brib-
ery in any form. We never pay bribes or accept their payment to the author-
ities or private individuals, and we never request or accept them. In particu-
lar, we can never give or offer anything of a monetary value to inappropriately
influence decisions to obtain or maintain business activities or to gain an unfair
advantage. We cannot do this directly or indirectly through third parties.
We aim to engage in a productive, ethical and transparent relationship with
our principals, representatives, distributors, customers and subcontractors. Fur-
thermore, we expect our partners to comply with applicable acts and regula-
tions, and commit to abiding by the codes of conduct of our product and ser-
vice suppliers.
We operate in an international business environment, which includes the
importation and exportation of products, goods, services and information from
one country to another. We comply with the applicable acts and regulations
that have an impact on our operations. Regulations include blockades and sanc-
tions, customs importation and exportation regulations, export controls, cus-
toms valuations, and regulations on origin and preferential treatment. In our
operations, we comply with applicable acts on the prevention of money laun-
dering, terrorism and economic crime. In addition, we always check the back-
ground of our new suppliers and customers (know your customer, KYC), and
compare our information with sanctions lists at regular intervals.
Aspo complies with the principle of fair competition. We provide our person-
nel with regular training to help them understand competition law and related
practices. No legal action has ever been taken against Aspo, its subsidiaries,
management or managerial employees for breach of competition law.
Minimum safeguards – taxation
Aspo’s tax strategy can briefly be defined as follows. Aspo complies with
national and international tax laws. We are not engaged in any aggressive tax
planning, and the profit of Aspo’s companies is taxed in the country in which it
has been generated. Aspo or its subsidiaries have never been convicted of any
tax violations, but Aspo may take legal action to defend its tax rights, if nec-
essary. We always comply with local tax law regarding all tax types. Aspo has
special tax characteristics at its shipping companies in Finland and Sweden,
to which local tonnage tax law applies. We openly communicate our tax posi-
tion at least once a year in our financial statements, and in separate bulletins if
required. We do not recognize any tax receivables from losses, unless we can
indisputably prove that they can be utilized according to legislation.
Assessment of alignment with the taxonomy based on technical criteria
Aspo’s alignment with the taxonomy has also been assessed based on tech-
nical criteria: substantial contribution to climate change mitigation, substantial
contribution to climate change adaptation, and DNSH criteria.
Substantial contribution to climate change mitigation
Aspo’s aligned activities mainly concern ESL Shipping’s most recent vessels and
those under construction. Paragraph 1d of the article on substantial contribu-
tion to climate change mitigation applies to these vessels which means that
the vessels have been given an energy efficiency design index (EEDI) value until
December 31, 2025, which is 10% lower than the EEDI requirements applied
on April 1, 2022, if the vessels use a fuel that does not generate direct car-
bon dioxide emissions (exhaust emissions) or fuels produced from renewable
sources. Of ESL Shipping’s vessels, Viikki and Haaga are below the required
level by 18.5% and the electric hybrid vessels under construction by 20.5%. On
these grounds, we consider the taxonomy’s technical criteria to be met, and
these vessels are aligned with the taxonomy.
These vessels are not intended for the transportation of fossil fuels which
meets the criteria defined in paragraph 2 of the article on substantial contribu-
tion to climate change mitigation. The part of net sales generated through the
transportation of fossil fuels is not included in aligned net sales.
Do no significant harm criteria
1) Climate change adaptation
Aspo has assessed climate scenarios, changes in conditions and resulting risks
using the mid-term climate scenarios of the Intergovernmental Panel on Cli-
mate Change (IPCC). The World Wildlife Fund’s (WWF) climate change scenar-
ios and resulting risks have also been used in the assessment. ESL Shipping’s
operations meet the requirements (p. 140) set for climate change adaptation
in Annex I, Appendix A of the delegated regulation regarding the assessment
of climate risks and vulnerabilities. As the lifecycle of ESL Shipping’s operations
has been assessed to be more than ten years, climate risks and vulnerabili-
ties have been assessed relative to time and the scope of operations Initially,
ESL Shipping’s vessels have been designed for conditions expected in shipping
operations, including storms, wind, waves, Arctic and other challenging condi-
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ASPO’S YEAR 2022
tions. According to our assessment, ESL Shipping has a good ability to respond
and adapt to various risks presented by climate change.
2) Sustainable use and protection of water and marine resources
With regard to the sustainable use and protection of water and marine
resources, no environmental impact assessment (EIA) is required for ESL Ship-
ping’s vessels. ESL Shipping is in the process of updating goals related to water
quality and the prevention of water stress in its guidelines.
3) Transition to a circular economy
Any waste generated during the operation of ESL Shipping’s vessels is sorted
and stored on board each vessel and transferred to ports under control. Dock-
ages are carried out by operators that are able to process the waste generated
during dockages sustainably. Lubricants and other hazardous waste are pro-
cessed so that they can be used in recycling. If ESL Shipping maintains any ves-
sels until the end of their lifecycle, scrapped vessels will be recycled under con-
trol. Vessels are operated in accordance with Annex V of the International Con-
vention for the Prevention of Pollution from Ships (MARPOL) issued by the
International Maritime Organization (IMO) on November 2, 1973. ESL Shipping
has prepared guidelines for waste processing, safety, recycling and scrapping,
and it has issued a statement on compliance with MARPOL.
4) Pollution prevention and control
In recent years, ESL Shipping has made specific investments in technologies
that reduce greenhouse gas emissions released into the atmosphere, including
carbon dioxide and methane. These include the liquefied natural gas (LNG) tech-
nology and the electric hybrid technology used in the vessels under construction.
Furthermore, ESL Shipping has installed sulfur scrubbers to purify exhaust gases
in its vessels that can use heavy sulfur-containing fuel oil but also use light
low-sulfur fuel oil that burns more cleanly. The carbon dioxide emissions of Viikki
and Haaga, ESL Shipping’s handy class vessels fueled by LNG, are 21–28%
lower compared with conventional fuels used in shipping operations. Moreover,
the methane emissions of Viikki and Haaga are significantly lower. High-pressure
two-stroke engines were selected as their main engines, as they burn meth-
ane more completely than conventional four-stroke engines. Both vessels have
a certificate granted by the Clean Shipping Index to indicate that they meet the
requirements of CSI 5.
The processing of gray water minimizes access to waterbodies by processing
the water at ports.
5) Protection and restoration of biodiversity and ecosystems
ESL Shipping does not use any antifouling paint at the bottoms of its vessels,
as they are cleaned mechanically which reduces the spread of toxins to the sen-
sitive ecosystem of the Baltic Sea. As practical examples of other safeguards,
ESL Shipping’s vessels are equipped with ballast water treatment systems that
prevent the spread of invasive alien species from one waterbody to another
through ballast water.
Eligible and aligned net sales, capital expenditure and operating
expenditure
During the 2021 financial year, we assessed that the operations of Telko, Lei-
purin and Kauko are not eligible under the taxonomy. Instead, ESL Shipping’s
operations were wholly eligible, similarly to its aligned investments and fixed
expenses.
During the 2022 financial year, we divested Kauko’s operations, and the net
sales, investments or fixed expenses of Telko and Leipurin were not eligible,
which is why their alignment with the taxonomy has not been assessed.
ESL Shipping’s operations belong to the taxonomy’s activity 6.10 (sea and
coastal freight water transport, vessels for port operations and auxiliary activi-
ties). The first environmental objective set for the activity is climate change miti-
gation. Of ESL Shipping’s operations, net sales, investments and fixed expenses
are wholly eligible. Of these, Viikki and Haaga, ESL Shipping’s handy class ves-
sels fueled by LNG, are aligned, and their net sales consist of income obtained
from customer contracts. The net sales generated by these vessels are not
wholly aligned, as the vessels have transported coal for use in energy genera-
tion. The part of net sales obtained from the transportation of coal has been
deducted from the numerator of the turnover indicator. The net sales of other
vessels and correspondingly of Aspo’s other operations are not aligned, but they
have been included in full in the numerator of the turnover indicator at a Group
level. The capital and operating expenditure allocated to the LNG-fueled vessels
also follows the distribution of their net sales.
The shipping company’s Supramax vessels or vessels of a smaller size cate-
gory are not aligned.
Currently, 12 advanced electric hybrid vessels are being built for ESL Ship-
ping’s Swedish subsidiary AtoBatC Shipping AB at a shipyard in India. Six of
them will remain in the company’s ownership and six will be transferred to
another owner participating in the pooling arrangement. Aligned capital expend-
iture only includes the capital expenditure of the vessels recognized on AtoBatC
Shipping’s balance sheet. The vessels transferred to the other pooling party do
not generate any aligned capital expenditure. Because the vessels are still under
construction, they have not generated any aligned operating expenditure.
Aligned operating expenditure includes maintenance expenses that arise from
ESL Shipping’s vessel and are not regarded as capital expenditure.
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■
PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
Substantial contribution criteria
DNSH criteria
(Does Not Significantly Harm)
Code(s)
Absolute
turover
Proportion of
turnover
Climate change
mitigation
Climate change
adaption
Water and
marine resources
Circular
economy
Pollution
Biodiversity
and ecosystems
Climate change
mitigation
Climate change
adaption
Water and
marine resources
Circular economy
Pollution
Biodiversity
and ecosystems
Minimum safeguards
Taxonomy- aligned
proportion of turnover,
year N
Taxonomy- aligned
proportion of turnover,
year N-1
Category
(enabling activity or)
Category
(transitional activity)
Economic activites MEUR % % % % % % % Y/N Y/N YN/ Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Sea and coastal freight water transport, vessels for port opera-
tions and auxiliary activities 6.10 20.2 3% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 3% n/a n/a T
Turnover of environmentally sustainable activities
(Taxonomy-aligned (A.1) 20.2 3% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 3% n/a n/a T
A.2 Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
Sea and coastal freight water transport, vessels for port opera-
tions and auxiliary activities 6.10 225.2 35%
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2) 225.2 35%
Total (A.1 + A.2) 245.4 38%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) 407.2 62%
Total (A + B) 652.6 100%
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
55
ASPO’S YEAR 2022
■
PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
Substantial contribution criteria
DNSH criteria
(Does Not Significantly Harm)
Code(s)
Absolute
CapEx
Proportion of
CapEx
Climate change
mitigation
Climate change
adaption
Water and
marine resources
Circular
economy
Pollution
Biodiversity
and ecosystems
Climate change
mitigation
Climate change
adaption
Water and
marine resources
Circular economy
Pollution
Biodiversity
and ecosystems
Minimum safeguards
Taxonomy- aligned
proportion of CapEx,
year N
Taxonomy- aligned
proportion of CapEx,
year N-1
Category
(enabling activity or)
Category
(transitional activity)
Economic activites MEUR % % % % % % % Y/N Y/N YN/ Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Sea and coastal freight water transport, vessels for port opera-
tions and auxiliary activities 6.10 8.3 59% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 59% n/a n/a T
CapEx of environmentally sustainable activities
(Taxonomy-aligned (A.1) 8.3 59% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 59% n/a n/a T
A.2 Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
Sea and coastal freight water transport, vessels for port opera-
tions and auxiliary activities 6.10 4.9 35%
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2) 4.9 35%
Total (A.1 + A.2) 13.2 94%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) 0.8 6%
Total (A + B) 14.0 100%
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
56
ASPO’S YEAR 2022
■
PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
Substantial contribution criteria
DNSH criteria
(Does Not Significantly Harm)
Code(s)
Absolute
OpEx
Proportion of
OpEx
Climate change
mitigation
Climate change
adaption
Water and
marine resources
Circular
economy
Pollution
Biodiversity
and ecosystems
Climate change
mitigation
Climate change
adaption
Water and
marine resources
Circular economy
Pollution
Biodiversity
and ecosystems
Minimum safeguards
Taxonomy- aligned
proportion of OpEx,
year N
Taxonomy- aligned
proportion of OpEx,
year N-1
Category
(enabling activity or)
Category
(transitional activity)
Economic activites MEUR % % % % % % % Y/N Y/N YN/ Y/N Y/N Y/N Y/N % % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Sea and coastal freight water transport, vessels for port opera-
tions and auxiliary activities 6.10 1.0 7% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 7% n/a n/a T
OpEx of environmentally sustainable activities
(Taxonomy-aligned (A.1) 1.0 7% 100% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 7% n/a n/a T
A.2 Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)
Sea and coastal freight water transport, vessels for port opera-
tions and auxiliary activities 6.10 11.9 86%
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2) 11.9 86%
Total (A.1 + A.2) 12.9 93%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities (B) 0.9
Total (A + B) 13.8 100%
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
57
ASPO’S YEAR 2022
RISKS AND RISK MANAGEMENT
Companies must approve a certain risk level, relative to which business targets
are set. Aspo also involves different risks associated with normal operations and
business-specific activities.
The purpose of risk management is to contribute to the achievement of the
Group’s goals. Risk management aims to proactively identify and manage poten-
tial problems and to identify and utilize business opportunities.
Risk management supports the development and implementation of Aspo’s
strategy.
The purpose of risk management is that:
• Aspo has an effective risk management control model, and related processes
integrated into Aspo’s business management.
• Managers have access to high-quality and up-to-date information on business
risks and their control measures, providing support for decision making.
• The probability of the realization of risks and unexpected events, and their
impact on finances and the reputation can be mitigated effectively.
• Risk management measures and selected control measures are based on
Aspo’s willingness to take risks and ability to tolerate risks.
• Cooperation in risk management is effective between Aspo’s different
businesses.
Aspo has strategic, operational, loss and financial risks. Strategic risks include
risks that have a long-term impact on businesses, such as risks associated with
the operating environment, market risks and political/legislative risks. The man-
agement of operational risks is a daily activity in businesses, and they include
counterparty risks, price risks associated with raw materials and risks associated
with non-conformities. The management of risks of loss is based on insurance
and operating guidelines.
Globally, there are many geopolitical risk clusters, the development of which
is difficult to predict, but which may have an impact on Aspo’s businesses.
Changes in these regions may be rapid and unpredictable, which is why it is dif-
ficult to estimate their potential impact or scale on Aspo’s businesses. Interna-
tional sanctions have been imposed, which may also affect Aspo’s businesses
directly or indirectly. Furthermore, various countries have imposed import duties
or other trade restrictions on each other’s products. However, for now they have
not had any direct impact on Aspo’s business operations. Geopolitical tensions
may escalate and cause direct damage to business, payments and, at worst,
suspend business operations in a crisis area. The crisis can also lead to human,
economic and monetary losses. Possible sanctions, including counter-sanctions,
could lead to business difficulties and financial losses.
Increased financial activities have caused the prices of many raw materials,
components and logistics services to increase rapidly, and increased uncertain-
ties over the functioning of logistics in certain market situations. Aspo may tem-
porarily benefit from this increase in prices, while the prices of purchased raw
materials or leased capacity, such as leased vessels, are increasing at the same
time. Longer delivery times for spare parts, components and raw materials, and
any rapid price changes in different market situations, are also increasing risks.
Growing inflation and rising interest rates may decelerate general economic
growth and reduce demand for Aspo’s businesses.
In line with its renewed strategy, Aspo aims to increase its steady profit-mak-
ing ability through acquisitions. The strategy may lead to a temporary deterio-
ration in the balance sheet and capital structure in situations where acquisitions
require financial investments and consequently may reduce solvency.
The coronavirus pandemic continues to have an impact on Aspo’s businesses.
Any new variants of coronavirus and their rapid spread may lead to various inter-
ruptions and financial losses.
The quantity and probability of the Group’s loss risks are assessed regularly.
Bidding processes are arranged for general insurance policies, and the amounts
insured are regularly updated. The amounts insured are sufficient in view of the
scope of Aspo’s operations, but insurance companies may restrict the validity of
insurance policies as a result of risks increasing for various reasons.
Because the future estimates presented in this annual report are based on
the current situation, they involve risks and other uncertainties, due to which
actual future outcomes may differ from the estimates.
FINANCIAL RISKS
Aspo Group’s financing and financial risk management are centralized in the par-
ent company in accordance with the treasury policy approved by the Board of
Directors.
• The refinancing risk is managed by decentralizing interest-bearing liabilities
with respect to the counterparty, the form of funding, and maturity.
• The liquidity risk is managed by securing the Group’s sufficient cash funds,
with committed revolving credit facilities and other financial reserves.
• The company hedges against interest rate changes by tying interest-
bearing liabilities partly to floating rate loans and partly to fixed rate loans.
In addition, interest rate derivatives are used for targeting hedging against
interest rate risks, if required.
• On a case-by-case basis, the Group uses terms of payment based on advance
payments and bank guarantees to hedge against credit risks. Full knowledge
of customers is an important part of credit risk management.
• The exchange rate risk is primarily controlled through customer and principal
agreements at the business level, and secondarily by using currency
derivatives, if required.
A more detailed description of financial risks is presented in Note 5.1 (Financial
risks and the management of financial risks) of the consolidated financial state-
ments.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
58
ASPO’S YEAR 2022
INTERNAL CONTROL AND RISK MANAGEMENT
One of the responsibilities of Aspo’s Audit Committee is to monitor the effi-
ciency of the Group’s internal control, internal audits and risk management
systems. The Audit Committee monitors the risk management process and
instructs necessary measures to prevent strategic risks in particular. In accord-
ance with the internal control principles approved by the Board of Directors,
risk management is part of Aspo’s internal control, and its task is to ensure the
implementation of the Group’s strategy, the development of financial results,
shareholder value, dividend payment ability, and continuity in business opera-
tions. The operational management of each business is responsible for risk man-
agement. The management is responsible for specifying sufficient measures and
their implementation, and for monitoring and ensuring that the measures are
implemented as part of day-to-day operational management. Aspo’s Director of
Legal Affairs, who reports to the Group CEO, is in charge of risk management.
LEGAL PROCEEDINGS
Aspo Group’s companies are party to some legal proceedings and disputes
associated with regular business operations. There were no significant changes
in these during 2022. On the basis of the information available and taking into
account the existing insurance cover and provisions made, Aspo believes that
they do not have any material adverse impact on the Group’s financial position.
MANAGEMENT AND AUDITORS
At the Annual Shareholders’ Meeting, Patricia Allam, Mammu Kaario, Mikael
Laine, Salla Pöyry, Tatu Vehmas and Heikki Westerlund were re-elected to the
Board of Directors, and Tapio Kolunsarka was elected as a new member. At the
Board’s organizing meeting held after the Annual Shareholders’ Meeting, Heikki
Westerlund was elected Chair of the Board and Mammu Kaario as Vice Chair. In
addition, the Board decided to elect Heikki Westerlund as Chair of the Personnel
and Remuneration Committee, and Tapio Kolunsarka, Salla Pöyry and Tatu Veh-
mas as its members, and Mammu Kaario as Chair of the Audit Committee, and
Patricia Allam, Mikael Laine and Tatu Vehmas as its members.
In 2022, the Board of Directors held 21 meetings. The participation rate was
99%.
In 2022, the company’s CEO was Rolf Jansson (M.Sc. (Econ.), M.Sc. (Eng.))
who started in his position in August 2021.
In October, Miska Kuusela was appointed Leipurin’s new Managing Director
and member of Aspo Group Executive Committee. In December, Taru Uotila was
appointed Aspo Group’s Senior Vice President of Legal Affairs, HR and Sustaina-
bility, and member of the Aspo Group Executive Committee. Kuusela and Uotila
started in their positions on January 2, 2023.
Keijo Keränen, Aspo Group’s Treasurer and member of the Group Executive
Committee, left the company at the beginning of November 2022. Heli Arantola,
Leipurin’s Managing Director and member of the Aspo Group Executive Commit-
tee, resigned in June 2022 to transfer to another company. She stopped work-
ing in her position on September 30.
The authorized public accountant firm Deloitte Oy has been the company’s
auditor. Jukka Vattulainen, APA, has been the auditor in charge. The auditor’s fee
will be paid in accordance with an accepted invoice.
BOARD AUTHORIZATIONS
Authorization of the Board of Directors to decide on the acquisition of
treasury shares
The Annual Shareholders’ Meeting held on April 6, 2022 authorized the Board of
Directors to decide on the acquisition of no more than 500,000 treasury shares
using the unrestricted equity of the company, representing around 1.6% of all
the shares in the company. The authorization includes the right to accept treas-
ury shares as a pledge. The authorization is valid until the Annual Shareholders’
Meeting in 2023 but not more than 18 months from the approval at the Annual
Shareholders’ Meeting.
Authorization of the Board of Directors to decide on a share issue of treasury
shares
The Annual Shareholders’ Meeting held on April 6, 2022 authorized the Board of
Directors to decide on a share issue, through one or several lots, to be executed
by conveying treasury shares. An aggregate maximum amount of 900,000
shares may be conveyed based on the authorization. The authorization is valid
until the Annual Shareholders’ Meeting in 2023 but not more than 18 months
from the approval at the Annual Shareholders’ Meeting.
In 2022, a total of 99,400 shares were conveyed within the scope of share-
based incentive plans.
Authorization of the Board of Directors to decide on a share issue of new
shares
The Annual Shareholders’ Meeting on April 6, 2022 authorized the Board of
Directors to decide on an issue of new shares against payment. The authori-
zation includes the right of the Board of Directors to decide on all of the other
terms and conditions of the conveyance and thus also includes the right to
decide on a directed share issue, in deviation from the shareholders’ pre-emp-
tive right, if a compelling financial reason exists for the company to do so. The
total number of new shares to be offered for subscription may not exceed
1,500,000. The authorization is valid until the Annual Shareholders’ Meeting in
2023 but not more than 18 months from the approval at the Annual Sharehold-
ers’ Meeting.
Authorization of the Board of Directors to decide on donations
Aspo Plc’s Annual Shareholders’ Meeting held on April 6, 2022 authorized the
Board of Directors to decide on donations of EUR 100,000 at maximum for
non-profit or similar purposes, and to decide on the recipients, purposes and
other conditions of the donations. The authorization is valid until the Annual
Shareholders’ Meeting in 2023.
In 2022, donations totaled approximately EUR 55,000.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
59
ASPO’S YEAR 2022
SHARES AND SHAREHOLDERS
Shares and payment of dividends
Aspo Plc’s registered share capital on December 31, 2022 was EUR
17,691,729.57, and the total number of shares was 31,419,779, of which the
company held 62,250 shares; that is, 0.2% of the share capital.
Aspo Plc’s Annual Shareholders’ Meeting held on April 6, 2022, decided, as
proposed by the Board of Directors, that EUR 0.23 per share be distributed in
dividends for the 2021 financial year, and that no dividend be paid for shares
held by Aspo Plc. The dividend was paid on April 19, 2022.
At its meeting held on November 2, 2022, Aspo Plc’s Board of Directors
decided on the second dividend distribution of EUR 0.22 per share, on the
basis of the authorization provided at the Annual Shareholders’ Meeting on
April 6, 2022. The dividend was paid on November 11, 2022.
Aspo Plc has one share series. Each share entitles the shareholder to one
vote at the shareholders’ meeting. Aspo’s share is quoted on Nasdaq Helsinki
Ltd’s Mid Cap segment under basic resources.
In January–December 2022, a total of 4,242,696 Aspo Plc shares, with a
market value of EUR 33.9 million, were traded on Nasdaq Helsinki. In other
words, 13.5% of the shares changed hands. During the year, the share price
reached a high of EUR 11.80 and a low of EUR 6.09. The average price was
EUR 8.01 and the closing price at the end of the year was EUR 8.20. At the
end of the year, the market value, less treasury shares, was EUR 257.1 million.
Shareholders
Aspo’s shares are included in the book-entry system maintained by Euroclear
Finland Ltd. The company had 11,712 shareholders at the end of the year. A
total of 1,077,145 shares, or 3.43% of the share capital, were nominee regis-
tered or held by non-domestic shareholders.
A monthly updated list of Aspo’s major shareholders is available at Aspo’s
website.
Share ownership by members of the Board and the Group Executive
Committee
On December 31, 2022, the total number of shares owned by the members of
Aspo Plc’s Board of Directors with entities under their control was 7,136,238
shares, which represents 22.71% of the company’s shares and voting rights.
On December 31, 2022, Aspo Plc’s CEO and the other members of the
Group Executive Committee held a total of 237,382 shares, which represents
0.76% of the company’s shares and voting rights.
DIVIDEND PROPOSAL BY THE BOARD OF DIRECTORS
Aspo aims for an annually increasing dividend distribution, while leaving room
for strategic investments. Starting from 2017, Aspo has adopted a twice-a-
year dividend payment policy.
The Board of Directors proposes to the Annual Shareholders’ Meeting of
Aspo Plc to be held on April 4, 2023, that EUR 0.23 per share be distributed
in dividends for the 2022 financial year, and that no dividend will be paid for
shares held by Aspo Plc. In addition, the Board of Directors proposes that the
Annual Shareholders’ Meeting authorizes the Board of Directors to decide on
another dividend distribution in the maximum amount of EUR 0.23 per share at
a later date. The authorization would be valid until the next Annual Sharehold-
ers’ Meeting.
On December 31, 2022, the parent company’s distributable funds totaled
EUR 43,344,212.43, with the profit for the financial year totaling EUR
7,544,383.09. There are a total of 31,357,529 shares entitling to dividends on
the publication date of the financial statement release.
The dividend of EUR 0.23 per share will be paid to shareholders who are
registered in the shareholders’ register maintained by Euroclear Finland Ltd on
the record date of April 6, 2023. The Board of Directors proposes that the div-
idend be paid on April 17, 2023. The Board of Directors will decide at its meet-
ing to be held on November 1, 2023, on the second dividend distribution in
the maximum amount of EUR 0.23 per share, which would be paid in Novem-
ber 2023 to shareholders who are registered in the shareholders’ register main-
tained by Euroclear Finland Ltd on the record date.
Before the Board of Directors implements the decision made at the Annual
Shareholders’ Meeting, it must assess, as required in the Finnish Limited Lia-
bility Companies Act, whether the company’s liquidity and/or financial position
has changed after the decision was made at the Annual Shareholders’ Meeting
so that the prerequisites for the distribution of dividends stipulated in the Lim-
ited Liability Companies Act are no longer fulfilled. The fulfillment of the prereq-
uisites stipulated in the Limited Liability Companies Act is a requirement for the
implementation of the decision made at the Annual Shareholders’ Meeting.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
60
ASPO’S YEAR 2022
■
MAJOR SHAREHOLDERS ON DECEMBER 31, 2022
Shares
qty
Percentage of shares
and voting rights, %
Havsudden Oy Ab 3,262,941 10.38
AEV Capital Holding Oy 3,253,554 10.36
Varma Mutual Pension Insurance Company 1,423,076 4.53
Vehmas Tapio 1,275,827 4.06
Nyberg Gustav 901,524 2.87
Ilmarinen Mutual Pension Insurance Company 875,226 2.79
Investment fund Nordea Nordic Small Cap 726,040 2.31
Procurator-Holding Oy 514,882 1.64
IAIK Oy 488,147 1.55
Skandinaviska Enskilda Banken Ab (Publ) 413,406 1.32
Ten major shareholders, total 13,134,623 41.80
■
DISTRIBUTION OF SHARE OWNERSHIP ON DECEMBER 31, 2022
BY NUMBER OF SHARES
Shares qty
Number of
shareholders
Percentage of
shareholders
%
Number of
shares
qty
Percentage of
all shares
%
1–100 2,884 24.63 148,815 0.47
101–500 4,358 37.21 1,189,603 3.79
501–1,000 1,830 15.63 1,397,239 4.45
1,001–5,000 2,120 18.10 4,541,303 14.45
5,001–10,000 288 2.46 2,059,073 6.55
10,001–50,000 188 1.61 3,814,806 12.14
50,001–100,000 13 0.11 949,221 3.02
100,001–500,000 22 0.19 5,082,185 16.18
500,001– 8 0.07 12,233,070 38.93
Total in joint accounts 4,464 0.01
Total 11,711 100.00 31,419,779 100.00
■
DISTRIBUTION OF SHARE OWNERSHIP ON DECEMBER 31, 2022
BY OWNER GROUP
Percentage of
shareholders %
Percentage of shares
%
Households 94.7 50.8
Companies 3.8 29.1
Financial and insurance institutions 0.3 7.6
Non-profit organizations 0.8 3.3
Public organizations 0.1 7.6
Non-domestic 0.4 1.6
Total 100.0 100.0
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
61
ASPO’S YEAR 2022
24 12
20 10
16 8
12 6
8 4
4 2
0 0
18 19 20 21 22* 18 19 20 21 22*
18 19 20 21 22
18 19 20 21 22
MEUR EUR
0.5
0.4
0.3
0.2
0.1
0
5.0
4.0
3.0
2.0
1.0
0
6.0
5.0
4.0
3.0
2.0
1.0
0
12,000
10,000
8,000
6,000
4,000
2,000
0
5.5
9,502
2.9
4.2
10,260
10,904
11,659
11,711
0.44
3.75
0.22
0.35
3.92
3.63
4.14
4.58
MONTHLY TURNOVER, MEUR AVERAGE PRICE, EUR
■
SHARE TRADING AND AVERAGE PRICE
■
DIVIDEND PER SHARE, EUR
■
EQUITY PER SHARE, EUR
■
EFFECTIVE DIVIDEND YIELD, %
■
NUMBER OF SHAREHOLDERS
* Board proposal to the Annual Shareholders’ Meeting* Board proposal to the Annual Shareholders’ Meeting
4.0
2.8
0.45
0.23
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
2018 2019 2020 2021 2022
62
ASPO’S YEAR 2022
■
SHARE-SPECIFIC KEY FIGURES
2022 2021 2020 2019 2018
Equity per share, EUR 4.58 4.14 3.63 3.92 3.75
Dividend per share, EUR (2022 proposal by the Board of Directors) 0.23 0.45 0.35 0.22 0.44
Dividend/earnings, % 37.6 58.9 91.0 46.4 106.7
Effective dividend yield, % 2.8 4.0 4.2 2.9 5.5
Price/earnings ratio (P/E) 13.4 14.9 21.8 16.1 19.1
Share price performance, EUR
Average price 8.01 10.08 6.80 8.20 9.51
Lowest price 6.09 8.28 5.50 7.52 7.90
Highest price 11.80 13.50 8.56 9.42 10.80
Closing price 8.20 11.36 8.40 7.62 7.96
Market value of shares, Dec. 31, MEUR 257.1 355.1 262.6 237.2 247.7
Share trading, 1,000 shares 4,243 4,068 6,798 2,454 1,809
Share trading, MEUR 33.9 41.0 46.3 20.1 17.2
Share trading/number of shares, % 13.5 12.9 21.6 7.8 5.8
Total number of shares on the closing date, 1,000 shares 31,420 31,420 31,420 31,420 31,420
Treasury shares 62 162 162 297 304
Outstanding shares 31,358 31,258 31,258 31,123 31,115
Average number of shares (outstanding), 1,000 shares 31,333 31,258 31,191 31,121 30,809
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
63
ASPO’S YEAR 2022
■
CALCULATION PRINCIPLES FOR KEY FIGURES
Aspo Plc applies the guidance on alternative key figures issued by the European Securities
and Market Authority (ESMA). In addition to IFRS figures, the company releases other com-
monly used key figures (alternative key figures), which are mainly derived from the consol-
idated statement of comprehensive income and balance sheet. According to the manage-
ment, alternative key figures clarify and supplement the picture drawn by the consolidated
statement of comprehensive income and balance sheet, as well as the IFRS key figures, of
Aspo’s financial performance and financial position.
Return on equity (ROE),
%
=
profit for the period × 100
equity (average of the current and previous financial year)
Equity ratio, % =
shareholders’ equity × 100
balance sheet total – advances received
Gearing, % =
(interest-bearing liabilities – cash and cash equivalents*) × 100
shareholders’ equity
Interest-bearing
liabilities, EUR
= loans and overdraft facilities in use (interest-bearing) + lease liabilities
Net interest-bearing
debt, EUR
= interest-bearing liabilities - cash and cash equivalents
Free cash flow, EUR = net cash from operating activities + net cash from investing activities
Earnings per share (EPS),
EUR
=
profit for the period – hybrid interest, net of tax
average number of shares, excluding treasury shares
Shareholders’ equity per
share, EUR
=
shareholders’ equity
number of shares on the closing date, excluding treasury shares
Dividend/earnings, % =
dividend per share × 100
earnings per share (EPS)
Effective dividend
yield, %
=
dividend per share × 100
closing price
Price/earnings ratio
(P/E)
=
closing price
earnings per share (EPS)
Market value of shares,
EUR
=
number of shares on the closing date, excluding treasury shares ×
closing price
Comparable operating
profit, EUR
= operating profit, excl. items affecting comparability
*) In the calculation of gearing, interest-bearing liabilities and cash and cash equivalents also include inter-
est-bearing liabilities and cash and cash equivalents classified as held for sale. Of cash and cash equiva-
lents held for sale, EUR 11.5 million are considered restricted cash and cash equivalents in accordance
with IAS 7 standard.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY FINANCIAL STATEMENTS INVESTOR INFORMATIONMANAGEMENT REPORT
64
ASPO’S YEAR 2022
Financial statements 2022
CONSOLIDATED FINANCIAL STATEMENTS 2022 66
Consolidated statement of comprehensive income 66
Consolidated balance sheet 67
Consolidated cash flow statement 68
Consolidated statement of changes in equity 69
1 Aspo develops businesses responsibly in the long term 70
1.1 Group structure 72
1.2 Acquisitions 74
1.3 Discontinued operations and divestments 76
2 Capital structure 79
2.1 Financial assets and liabilities 80
2.2 Cash and cash equivalents 81
2.3 Loans 82
2.4 Maturity 83
2.5 Leases 84
2.6 Equity 86
2.7 Earnings per share and dividend distribution 87
3 Business operations and profitability 88
3.1 Net sales 90
3.2 Other operating income 92
3.3 Associated companies 93
3.4 Materials and services 94
3.5 Other operating expenses 94
3.6 Employee benefit expenses and number of employees 95
3.7 Depreciation, amortization and impairment losses 96
3.8 Financial income and expenses 97
3.9 Income taxes 98
4 Invested capital 99
4.1 Tangible assets 100
4.2 Intangible assets 104
4.3 Impairment test of goodwill and brands 105
4.4 Inventories 107
4.5 Accounts receivable and other receivables 108
4.6 Accounts payable and other liabilities 109
4.7 Provisions 109
4.8 Deferred taxes 110
5 Other notes 112
5.1 Financial risks and the management of financial risks 112
5.2 Related parties 116
5.3 Share-based payments 117
5.4 Contingent assets and liabilities, and other commitments 118
5.5 Events after the financial year 119
5.6 Changes in IFRS standards 119
PARENT COMPANY’S FINANCIAL STATEMENTS 121
Parent company’s income statement 121
Parent company’s balance sheet 122
Parent company’s cash flow statement 123
Notes to the parent company’s financial statements 124
Signature of the financial statements and management report 133
Auditor’s report 134
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
65
ASPO’S YEAR 2022
1,000 EUR Note Jan 1–Dec 31, 2022 Jan 1–Dec 31, 2021
Continuing operations
Net sales 3.1 643,398 573,288
Other operating income 3.2 2,648 473
Share of profits accounted for using the equity method 3.3 626 -57
Materials and services 3.4 -402,918 -349,420
Employee benefit expenses 3.6 -54,404 -50,684
Depreciation, amortization and impairment losses 3.7 -19,864 -20,781
Depreciation, amortization and impairment losses, leased assets 3.7 -16,695 -13,761
Other operating expenses 3.5 -118,881 -102,132
Operating profit 33,910 36,926
Financial income 3.8 1,551 487
Financial expenses 3.8 -7,815 -4,365
Financial income and expenses -6,264 -3,878
Profit before taxes 27,646 33,048
Income taxes 3.9 -4,147 -4,733
Profit from continuing operations 23,499 28,315
Profit from discontinued operations
(attributable to equity holders of the company) 1.3 -2,812 -3,032
Profit for the period 20,687 25,283
1,000 EUR Note Jan 1–Dec 31, 2022 Jan 1–Dec 31, 2021
Other comprehensive income
Items that may be reclassified to profit or loss in subsequent periods:
Translation differences -1,211 2,174
Other comprehensive income for the period, net of taxes -1,211 2,174
Total comprehensive income 19,476 27,457
Profit for the period attributable to
Parent company shareholders 20,687 25,283
Total comprehensive income attributable to
Parent company shareholders 19,476 27,457
Earnings per share attributable to parent company shareholders, EUR
Basic earnings per share
Continuing operations 2.7 0.70 0.86
Discontinued operations 2.7 -0.09 -0.10
Total 0.61 0.76
Diluted earnings per share
Continuing operations 2.7 0.70 0.86
Discontinued operations 2.7 -0.09 -0.10
Total 0.61 0.76
Consolidated statement of comprehensive income
Consolidated financial statements
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
66
ASPO’S YEAR 2022
Consolidated balance sheet
ASSETS
1,000 EUR Note Dec 31, 2022 Dec 31, 2021
Non-current assets
Intangible assets 4.2 46,783 45,845
Tangible assets 4.1 178,454 168,886
Leased assets 2.5 15,871 20,748
Investments accounted for using the equity method 3.3 974 701
Other financial assets 207 321
Deferred tax assets 4.8 330 645
Total non-current assets 242,619 237,146
Current assets
Inventories 4.4 69,900 68,626
Accounts receivable and other receivables 4.5 68,995 74,035
Current tax assets 255 433
Cash and cash equivalents 2.2 21,727 17,697
Assets held for sale 1.3 12,414 8,373
Total current assets 173,291 169,164
Total assets 415,910 406,310
EQUITY AND LIABILITIES
1,000 EUR Note Dec 31, 2022 Dec 31, 2021
Equity attributable to parent company shareholders
Share capital 2.6 17,692 17,692
Share premium reserve 2.6 4,351 4,351
Other reserves 2.6 16,472 16,474
Hybrid bond 2.6 30,000 20,000
Translation differences -25,995 -24,786
Retained earnings 101,165 95,658
Total equity 143,685 129,389
Non-current liabilities
Deferred tax liabilities 4.8 6,946 5,241
Provisions 4.7 586 586
Loans and overdraft facilities 2.3 154,301 142,381
Lease liabilities 2.5 4,559 6,869
Other liabilities 99 59
Total non-current liabilities 166,491 155,136
Current liabilities
Provisions 4.7 58 77
Loans and overdraft facilities 2.3 17,825 21,465
Lease liabilities 2.5 11,728 14,411
Accounts payable and other liabilities 4.6 71,105 78,077
Current tax liabilities 1,111 985
Liabilities directly associated with assets classified as held for sale 1.3 3,907 6,770
Total current liabilities 105,734 121,785
Total liabilities 272,225 276,921
Total equity and liabilities 415,910 406,310
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
67
ASPO’S YEAR 2022
Consolidated cash flow statement
1,000 EUR Note Jan 1–Dec 31, 2022 Jan 1–Dec 31, 2021
Cash flows from/used in operating activities
Operating profit from continuing operations 33,910 36,926
Operating profit from discontinued operations 1.3 -2,726 -3,016
Operating profit total 31,184 33,910
Adjustments to operating profit:
Depreciation, amortization and impairment losses 3.7 37,815 38,134
Other impairment losses of the eastern companies classified as held for sale 11,733
Gains (-) and losses (+) on sale of tangible assets -1,637 -205
Gains and losses on sale of business operations 1,010
Expensed inventory fair value adjustment of acquired businesses 634
Share of profits accounted for using the equity method 3.3 -626 57
Share-based incentive plan 1,152 1,126
Increase (+) / decrease (-) in provisions 4.7 -37 655
Unrealized foreign exchange gains and losses on operating activities 582 -164
Change in working capital:
Increase (-) / decrease (+) in inventories -12,934 -23,886
Increase (-) / decrease (+) in accounts receivable and other receivables -2,502 -13,294
Increase (+) / decrease (-) in accounts payable and other liabilities 8,785 15,178
Interest paid -4,224 -4,395
Interest received 307 357
Income taxes paid -3,571 -3,475
Net cash from operating activities 67,671 43,998
1,000 EUR Note Jan 1–Dec 31, 2022 Jan 1–Dec 31, 2021
Cash flows from/used in investing activities
Investments in tangible and intangible assets 4.1 -17,818 -16,887
Investment subsidies 4.1 1,009
Proceeds from sale of tangible assets 1,795 225
Acquisitions, net of cash -17,937 -1,067
Dividends received 354 216
Proceeds from sale of business operations 310
Net cash used in investing activities -33,296 -16,504
Cash flows from/used in financing activities
Proceeds from loans 29,600 37,007
Repayments of loans -18,689 -47,513
Proceeds from issuance of commercial papers 30,000 28,000
Repayment of commercial papers -35,000 -34,000
Payment of lease liabilities -16,227 -13,798
Proceeds from Hybrid bond issue 2.6 30,000
Hybrid bond repayment 2.6 -20,000
Hybrid bond, interest paid 2.6 -1,760 -1,750
Hybrid bond, transaction costs paid 2.6 -353
Dividends paid -14,107 -10,940
Net cash used in financing activities -16,536 -42,994
Change in cash and cash equivalents 17,839 -15,500
Cash and cash equivalents Jan. 1 *) 17,724 32,303
Translation differences 28 921
Impairment of cash of the eastern companies classified as held for sale -2,017
Cash and cash equivalents at year-end *) 33,574 17,724
*) In year-end 2022 cash and cash equivalents of continuing operations totalled EUR 21,727 thousand and cash and cash equivalents clas-
sified as assets held for sale totalled EUR 11,847 thousand. In year-end 2021 cash and cash equivalents of continuing operations totalled
EUR 17,697 thousand and cash and cash equivalents classified as assets held for sale totalled EUR 28 thousand.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
68
ASPO’S YEAR 2022
Consolidated statement of changes in equity
1,000 EUR Note
Share
capital
Share
premium
reserve
Other
reserves
Hybrid
bond
Translation
differences
Retained
earnings Total
Equity January 1, 2022 17,692 4,351 16,474 20,000 -24,786 95,658 129,389
Comprehensive income
Profit for the period 20,687 20,687
Other comprehensive income, net of taxes
Translation differences -2 -1,209 -1,211
Total comprehensive income -2 -1,209 20,687 19,476
Transactions with owners
Dividend distribution -14,109 -14,109
Hybrid bond 2.6 10,000 10,000
Hybrid bond interest and transaction costs 2.6 -2,223 -2,223
Share-based incentive plan 1,152 1,152
Total transactions with owners 10,000 -15,180 -5,180
Equity December 31, 2022 17,692 4,351 16,472 30,000 -25,995 101,165 143,685
Equity January 1, 2021 17,692 4,351 16,475 20,000 -26,961 81,940 113,497
Comprehensive income
Profit for the period 25,283 25,283
Other comprehensive income, net of taxes
Translation differences -1 2,175 2,174
Total comprehensive income -1 2,175 25,283 27,457
Transactions with owners
Dividend distribution -10,940 -10,940
Hybrid bond interest 2.6 -1,750 -1,750
Share-based incentive plan 1,125 1,125
Total transactions with owners -11,565 -11,565
Equity December 31, 2021 17,692 4,351 16,474 20,000 -24,786 95,658 129,389
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
69
ASPO’S YEAR 2022
1
ASPO DEVELOPS BUSINESSES RESPONSIBLY IN THE LONG TERM
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
70
ASPO’S YEAR 2022
200
160
120
80
40
0
40
30
20
10
0
18 19 20 21 22 18 19 20 21 22
154.4
29.5
162.2
30.1
149.0
30.1
32.0
■
GEARING, %
■
EQUITY RATIO, %
2
CAPITAL STRUCTURE
131.0
108.4
34.7
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
79
ASPO’S YEAR 2022
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
83
ASPO’S YEAR 2022
■
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
89
ASPO’S YEAR 2022
3.1 Net sales
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
90
ASPO’S YEAR 2022
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
91
ASPO’S YEAR 2022
■
INVESTED CAPITAL
1,000 EUR Note 2022 2021
Intangible assets 4.2 46,783 45,845
Tangible assets 4.1 178,454 168,886
Leased assets 2.5 15,871 20,748
Inventories 4.4 69,900 68,626
Accounts receivable and other receivables 4.5 68,995 74,035
Other assets 1,436 1,455
Cash and cash equivalents 2.2 21,727 17,697
Accounts payable and other liabilities 4.6 -71,105 -78,077
Other liabilities -1,854 -1,707
Deferred tax assets and liabilities, net 4.8 -6,616 -4,596
Assets and liabilities classified as held for sale, net 9,345 3,765
Total 332,936 316,677
Aspo’s invested capital includes the Group’s assets less liabilities, excluding interest-bearing liabilities. Invested capi-
tal describes where equity and interest-bearing liabilities are tied, which is why it provides interesting information and
is representative of Aspo’s operations. The most significant component of invested capital are the vessels owned and
leased by ESL Shipping, totaling EUR 160.7 million. Goodwill and other intangible assets account for EUR 46.8 million
of invested capital. Goodwill and other intangible assets, such as customer relationships and brands are generated on
Aspo’s balance sheet, when it develops the Group structure through acquisitions according to its strategy. Furthermore,
working capital makes up EUR 76.9 million, and cash and cash equivalents EUR 21.7 million of invested capital.
■
INVESTMENTS BY SEGMENT
1,000 EUR 2022 2021
ESL Shipping 16,460 15,235
Telko 208 509
Leipurin 1,124 121
Other operations 2 5
Continuing operations, total 17,794 15,870
Discontinued operation 24 8
Total 17,818 15,878
Investments consist of additions in tangible assets and intangible assets that will be used during more than one financial
year, excluding additions through acquisitions. Additions of leased assets are disclosed in Note 2.5 Leases. The invest-
ments of EUR 17.8 (15.9) million mainly consisted of ESL Shipping segment’s dockages and Green Coaster advance pay-
ments.
■
NON-CURRENT ASSETS BY MARKET AREA
1,000 EUR 2022 2021
Finland 197,751 218,034
Scandinavia 43,391 17,361
Baltic countries 238 308
Russia, other CIS countries and Ukraine 773 763
Other countries 136 35
Total 242,289 236,501
The non-current assets include all other assets except for deferred tax assets. Assets of geographical regions are pre-
sented as per location of the assets.
4
INVESTED CAPITAL
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
99
ASPO’S YEAR 2022
GREEN COASTER INVESTMENT COMMITMENT
AtoBatC Shipping AB, reported in the ESL Shipping segment, is building a series of six highly energy-efficient electric
hybrid vessels. The new vessels of ice class 1A will be top of the line in terms of their cargo capacity, technology and
innovation. The total value of the six-vessel investment is approximately EUR 70 million, and its cash flows will be divided
mainly for the years 2023 and 2024. The new vessels will be built at the Chowgule and Company Private Limited ship-
yard in India, and first of them will start operating in the third quarter of 2023.
In 2022, it was confirmed that ESL Shipping will establish a Green Coaster pool. As a result, AtoBatC Shipping AB
declared its option and ordered five additional vessels from the Chowgule & Company Private Limited, from which Ato-
BatC had previously ordered seven identical electric hybrid vessels. Every other vessel in the series of twelve next-gener-
ation electric hybrid vessels will be sold to a company formed by a group of investors. Advance payments for the vessels
to be sold further have been recognized in inventories. ESL Shipping’s total investment comprises six vessels and approx-
imately EUR 70 million.
WORKING CAPITAL
Working capital, as defined by Aspo, includes inventories, accounts receivable, accounts payable and advances received.
Aspo emphasizes the efficiency of working capital and aims to permanently decrease its working capital.
■
WORKING CAPITAL
1,000 EUR Note 2022 2021
Inventories 4.4 69,900 68,626
Accounts receivable 4.5 47,279 58,911
Accounts payable 4.6 -38,805 -48,218
Advances received 4.6 -1,481 -1,695
Total 76,893 77,624
The Group’s working capital decreased by EUR 0.7 million. However, if the working capital is adjusted by the Group’s
incoming and outgoing items resulting from acquisitions and disposals and by impairment amounts recognized on the
assets of the eastern operations held for sale in conjunction with the IFRS 5 classification, the working capital increased,
especially regarding inventories. The increase in inventories mainly came from advance payments for the vessels to be
built for the ESL Shipping segment’s vessel pool. At the end of the financial year, inventories included EUR 10.2 million
in advance payments for the Green Coaster vessels. Telko segment’s working capital improved during the year. In 2021,
working capital increased by EUR 26 million, mainly as a result of the increase in Telko’s inventories. The impact on cash
flow of the adjusted change in working capital was EUR -6.7 (22.0) million.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
100
ASPO’S YEAR 2022
■
4.1 Tangible assets
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
101
ASPO’S YEAR 2022
5.6 Changes in IFRS standards
NEW AND AMENDED STANDARDS ADOPTED DURING THE FINANCIAL YEAR
No new standards or amendments to standards have been adopted by the Group for the first time in the annual report-
ing period commencing January 1, 2022.
CHANGES IN IFRS STANDARDS AND IFRIC INTERPRETATIONS, THAT BECOME EFFECTIVE EARLIEST IN THE NEXT
FINANCIAL YEAR
The Group will adopt the following changes in standards when they become effective:
• Classification of Liabilities as Current or Non-Current – Amendment to IAS 1, which will become effective on January
1, 2023. The amendment clarifies that the classification of loans as current or non-current should be based on rights
that are in existence at the end of the reporting period and that the classification is unaffected by management’s
expectations or events after the reporting date. The amendment may have an impact on the classification of Aspo’s
loans as current and non-current.
• Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture. The amendments to IFRS 10 and IAS 28 deal with situations where there is a sale or contribution of assets
between an investor and its associate or joint venture. The effective date of the amendments has yet to be set by the
IASB. Management expects that the adoption of the amendments may have an impact on the consolidated financial
statements in future financial years, if such transactions occur.
• Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policies: A description of material
accounting policy information is added to the standard. Accounting policy information is material when, it can
reasonably be expected to influence decisions that the primary users make on the basis of those financial statements.
Accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and
need not be disclosed. The Board has also developed guidance and examples to explain and demonstrate the
application of the ‘four-step materiality process’ described in IFRS Practice Statement 2. The amendments to IAS 1
are effective on 1 January 2023. The amendments to IFRS Practice Statement 2 do not contain an effective date or
transition requirements.
• Amendments to IAS 8 Definition of Accounting Estimates, which become effective on January 1, 2023. The
amendments replace the definition of a change in accounting estimates with a definition of accounting estimates.
Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to
measurement uncertainty”. However, the change will concern the following: a change in accounting estimate that
results from new information or new developments is not a correction of an error, and that the effects of a change in
an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if
5.5 Events after the financial year
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
119
ASPO’S YEAR 2022
they do not result from the correction of prior period errors. These terminological changes are not expected to have
any impact on Aspo’s consolidated financial statements.
• Amendments to IAS 12 Deferred Tax related to Assets and Liabilities Arising from a Single Transaction. Under the
amendments, an entity does not apply the initial recognition exemption for transactions that give rise to equal taxable
and deductible temporary differences. The amendment may have an impact on the consolidated financial statements
upon recognition of a lease liability and the corresponding right-of-use asset applying IFRS 16 at the commencement
date of a lease. However, the change is not expected to have any particularly significant impact on Aspo, as the
Group’s lease agreements are mainly related to vessels that are within the scope of tonnage taxation, and no deferred
taxes are therefore recognized on them. For Aspo Plc and the Leipurin segment, the recoverability criteria are not met
regarding deferred tax receivables, which means that the amendment only concerns Telko’s lease agreements. The
amendments are effective on January 1, 2023, and comparative period’s information is restated.
• Amendments to IFRS 16 Leases—Lease Liability in a Sale and Leaseback. The amendments clarify how a seller-lessee
subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for
as a sale. These amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback
in a way that it does not recognise any amount of the gain or loss that relates to the right of use it retains. The new
requirements do not prevent a seller-lessee from recognising in profit or loss any gain or loss relating to the partial or
full termination of a lease. The amendments are effective for annual reporting periods beginning on or after 1 January
2024. Earlier application is permitted. Management expects that the adoption of the amendments may have an
impact on the consolidated financial statements in future financial years, if such transactions occur.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
120
ASPO’S YEAR 2022
EUR Note Jan 1–Dec 31, 2022 Jan 1–Dec 31, 2021
Net sales 1.1 628,666.56 600,500.00
Other operating income 1.2 698,117.32 671,340.89
Employee benefit expenses 1.3 -2,982,759.80 -3,865,217.34
Depreciation and amortization 1.4 -30,117.42 -36,264.21
Other operating expenses 1.5 -3,487,439.99 -4,090,695.34
Operating loss -5,173,533.33 -6,720,336.00
Financial income and expenses 1.6 10,217,916.42 19,609,939.70
Profit before appropriations and taxes 5,044,383.09 12,889,603.70
Appropriations 1.7 2,500,000.00 3,030,000.00
Profit for the period 7,544,383.09 15,919,603.70
Parent company’s income statement
Parent company’s financial statements
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
121
ASPO’S YEAR 2022
Parent company’s balance sheet
ASSETS
EUR Note Dec 31, 2022 Dec 31, 2021
Non-current assets
Intangible assets 2.1 29,382.32 55,329.08
Tangible assets 2.1 106,538.75 80,150.78
Investments 2.2 81,818,131.57 83,404,469.90
Total non-current assets 81,954,052.64 83,539,949.76
Current assets
Receivables from Group companies, non-current 2.3 102,773,786.00 102,038,786.00
Receivables from Group companies, current 2.3 15,696,075.74 15,644,787.11
Other current receivables 2.3 384,580.49 330,861.25
Cash and cash equivalents 9,437,636.18 6,040,476.12
Total current assets 128,292,078.41 124,054,910.48
Total assets 210,246,131.05 207,594,860.24
EQUITY AND LIABILITIES
EUR Note Dec 31, 2022 Dec 31, 2021
Equity
Share capital 2.4 17,691,729.57 17,691,729.57
Share premium reserve 2.4 4,351,173.64 4,351,173.64
Invested unrestricted equity reserve 2.4 21,370,305.29 21,324,170.25
Retained earnings 2.4 14,429,524.05 12,363,542.64
Profit for the period 7,544,383.09 15,919,603.70
Total equity 65,387,115.64 71,650,219.80
Provisions 2.5 318,262.50 253,328.00
Liabilities
Non-current liabilities
Bonds 2.6 14,982,968.75 14,973,158.75
Hybrid bond 2.6 30,000,000.00 20,000,000.00
Loans from financial institutions 2.6 72,500,000.00 75,000,000.00
Loans from Group companies 2.6 854,000.00
Total non-current liabilities 117,482,968.75 110,827,158.75
Current liabilities
Liabilities to Group companies 2.7 11,803,547.40 14,008,818.94
Loans from financial institutions 2.7 12,500,000.00 7,500,000.00
Accounts payable 32,355.69 213,911.07
Other liabilities 67,580.94 75,932.89
Deferred liabilities 2.7 2,654,300.13 3,065,490.79
Total current liabilities 27,057,784.16 24,864,153.69
Total liabilities 144,540,752.91 135,691,312.44
Total equity and liabilities 210,246,131.05 207,594,860.24
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
122
ASPO’S YEAR 2022
Parent company’s cash flow statement
EUR Jan 1–Dec 31, 2022 Jan 1–Dec 31, 2021
Cash flows from/used in operating activities
Operating loss -5,173,533.33 -6,720,336.00
Adjustments to operating loss 95,051.92 288,247.82
Change in working capital -999,185.97 1,326,107.36
Interest paid -4,708,376.29 -4,240,585.92
Interest received 1,778,131.91 1,826,814.97
Dividends received 12,000,000.00 20,900,000.00
Net cash from operating activities 2,992,088.24 13,380,248.23
Cash flows from/used in investing activities
Investments in tangible and intangible assets -30,558.63
Proceeds from sale of subsidiary shares -968,600.00
Loans granted -48,200,000.00 -18,300,000.00
Proceeds from loans 47,465,000.00 29,485,000.00
Net cash used in investing activities -1,734,158.63 11,185,000.00
EUR Jan 1–Dec 31, 2022 Jan 1–Dec 31, 2021
Cash flows from/used in financing activities
Repayment of non-current loans from Group companies -854,000.00 -1,430,571.36
Proceeds from non-current loans 25,000,000.00
Repayment of non-current loans -2,500,000.00 -17,500,000.00
Change in current receivables from Group companies 3,470,711.37 -3,828,732.91
Change in current liabilities to Group companies -2,199,993.67 -7,069,550.56
Proceeds from current loans 10,000,000.00
Repayment of a bond loan -11,000,000.00
Proceeds from issuance of commercial papers 30,000,000.00 28,000,000.00
Repayment of commercial papers -35,000,000.00 -34,000,000.00
Proceeds from Hybrid bond issue 30,000,000.00
Repayment of Hybrid bond -20,000,000.00
Group contributions received 3,030,000.00 2,360,000.00
Dividends paid -14,108,588.05 -10,940,345.15
Proceeds from sale of treasury shares 301,100.80
Net cash used in financing activities 2,139,230.45 -30,409,199.98
Change in cash and cash equivalents 3,397,160.06 -5,843,951.75
Cash and cash equivalents Jan 1 6,040,476.12 11,884,427.87
Cash and cash equivalents at year-end 9,437,636.18 6,040,476.12
The division of the cash flow statement for the previous financial year has been changed to correspond to the current
financial year’s division by transferring granted loans and repayments of loan receivables from cash flow from financing to
cash flow from investments.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT INVESTOR INFORMATIONFINANCIAL STATEMENTS
123
ASPO’S YEAR 2022
Notes to the parent company’s financial statements
ACCOUNTING PRINCIPLES
Basis of accounting
Aspo Plc’s financial statements have been compiled in
accordance with Finnish Accounting Standards (FAS). The
accounting principles have not changed from the previous
year. Aspo Plc is the parent company of Aspo Group. All
figures in the financial statements are presented in full val-
ues. When appropriate, the financial statements of Aspo
Plc comply with the Group’s accounting principles based
on IFRS. Below are described those accounting princi-
ples in which the financial statements of Aspo Plc differ
from the accounting principles of the Group. The account-
ing principles for the consolidated financial statements are
presented in the notes to the consolidated financial state-
ments. When compiling the financial statements, the man-
agement of the company must, in accordance with valid
regulations and good accounting practice, make estimates
and assumptions that affect the measurement and accru-
ing of financial statement items. The outcome may differ
from the estimates.
Investments
Subsidiary shares in investments in the company’s
non-current assets, as well as other shares and participa-
tions, are measured at the lower of the acquisition cost or
the fair value.
Leasing
Lease payments are recognized as rent expenses during
the lease period and included in other operating expenses.
Provisions
Provisions include items that are either based on contracts
or otherwise binding obligations but have not yet realized.
Changes in provisions are recognized in the income state-
ment.
Share-based payments
In the parent company’s financial statements, share-based
payment expenses are recognized as expenses for the
financial year, during which the obligation to pay remu-
nerations is generated. Share-based payment expenses
are recognized as provisions if the shares have not been
transferred yet. The right to tax deductibility is established
when the shares are transferred. The reward is settled
partly in shares of the company and partly in cash, with
cash being paid to fulfil the withholding tax obligation. The
settlement of the reward in shares does not give rise to
an accounting transaction.
Income taxes
The income taxes in the income statement include taxes
calculated on profit for the period based on Finnish tax
legislation and considering losses carried forward, as well
as adjustment of taxes from previous financial years.
Hybrid bond
The hybrid bond is presented in the parent company’s bal-
ance sheet as liabilities and the related interest is pre-
sented as financial expenses in the income statement.
Cash pool arrangement
The Group has a cash pool arrangement, to facilitate an
efficient liquid asset management between the parent and
its subsidiaries. The cash pool balances of the subsidiaries
are presented in the parent company’s balance sheet as
either cash pool receivables or liabilities.
Measurement of financial instruments
Fair value measurement compliant with Chapter 5, sec-
tion 2a of the Accounting Act is applied to the accounting
treatment of financial derivatives, and changes in their fair
value are entered in the income statement. Financial deriv-
atives are measured at the market prices at the balance
sheet date.
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1.3 Information about personnel and management
■
EMPLOYEE BENEFIT EXPENSES
EUR 2022 2021
Wages and salaries 1,983,249.77 2,853,243.03
Share-based payments 440,562.11 253,328.00
Profit bonus paid to the personnel fund 19,202.64 4,704.12
Pension expenses 462,829.23 651,337.65
Other social security expenses 76,916.05 102,604.54
Total 2,982,759.80 3,865,217.34
■
MANAGEMENT COMPENSATION
EUR 2022 2021
CEOs, salaries 589,162.08 604,592.91
CEO, share-based payments 74,708.18
CEO, bonuses 71,725.50 140,820.88
Members of the Board of Directors, remunerations 304,673.68 242,400.00
Total 1,040,269.44 987,813.79
The CEO is entitled to a statutory pension, and the retirement age is determined according to the statutory
earnings-related pension scheme.
■
AVERAGE NUMBER OF PERSONNEL DURING THE FINANCIAL YEAR
2022 2021
Office staff 9 9
1.1 Net sales
1.2 Other operating income
■
NET SALES
EUR 2022 2021
Net sales 628,666.56 600,500.00
Distribution of net sales by market area %
Finland 100 100
■
OTHER OPERATING INCOME
EUR 2022 2021
Rental income from Group companies 627,386.21 625,633.46
Other operating income 70,731.11 45,707.43
Total 698,117.32 671,340.89
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■
OTHER OPERATING EXPENSES
EUR 2022 2021
Rents 867,178.28 881,807.87
Administration and consultancy services 2,000,091.65 2,261,134.39
Other expenses 620,170.06 947,753.08
Total 3,487,439.99 4,090,695.34
■
AUDITOR’S FEES
EUR 2022 2021
Audit fees 73,863.33 37,000.00
Other services 20,840.50 125,900.00
Total 94,703.83 162,900.00
The authorized public accountant firm Deloitte Oy is the company’s auditor. The audit fee was EUR 74 (37) thousand.
Other fees mainly consist of services related to sustainability reporting.
1.5 Other operating expenses
■
DEPRECIATION AND AMORTIZATION
EUR 2022 2021
Amortization, other long-term expenditure 25,946.76 25,946.76
Depreciation, machinery and equipment 4,170.66 10,317.45
Total 30,117.42 36,264.21
1.4 Depreciation and amortization
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■
FINANCIAL INCOME AND EXPENSES
EUR 2022 2021
Dividend income
From Group companies
Total 16,000,000.00 21,900,000.00
Other interest and financial income
From Group companies 1,798,242.55 1,826,616.38
Exchange rate gains 576.08 547.63
From others 24,820.92 241.46
Total 1,823,639.55 1,827,405.47
Total financial income 17,823,639.55 23,727,405.47
Financial expenses
Interest expenses and other financial expenses
To Group companies -34,429.08 -29,817.49
To others -7,571,294.05 -4,087,648.28
Total -7,605,723.13 -4,117,465.77
Total financial expenses -7,605,723.13 -4,117,465.77
Total financial income and expenses 10,217,916.42 19,609,939.70
Kauko Oy’s sales loss of EUR 3.0 million is included in financial expenses in 2022.
1.6 Financial income and expenses
■
APPROPRIATIONS
EUR 2022 2021
Group contributions received 2,500,000.00 3,030,000.00
Total 2,500,000.00 3,030,000.00
1.7 Appropriations
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■
INTANGIBLE AND TANGIBLE ASSETS 2022
EUR Intangible rights
Other long-term expend-
iture
Total
intangibles Land Buildings
Machinery and
equipment
Other
tangible assets
Total
tangibles
Acquisition cost, Jan. 1 201,058.04 135,459.44 336,517.48 1,387.55 12,142.02 170,841.18 73,097.83 257,468.58
Additions 520.00 30,038.63 30,558.63
Acquisition cost, Dec. 31 201,058.04 135,459.44 336,517.48 1,907.55 12,142.02 170,841.18 103,136.46 288,027.21
Accumulated depreciation, Jan. 1 -201,058.04 -80,130.36 -281,188.40 -12,142.02 -165,175.78 -177,317.80
Depreciation and amortization for the period -25,946.76 -25,946.76 -4,170.66 -4,170.66
Accumulated depreciation, Dec. 31 -201,058.04 -106,077.12 -307,135.16 -12,142.02 -169,346.44 -181,488.46
Carrying amount, Dec. 31, 2022 0.00 29,382.32 29,382.32 1,907.55 0.00 1,494.74 103,136.46 106,538.75
■
INTANGIBLE AND TANGIBLE ASSETS 2021
EUR Intangible rights
Other long-term expend-
iture
Total
intangibles Land Buildings
Machinery and
equipment
Other
tangible assets
Total
tangibles
Acquisition cost, Jan. 1 201,058.04 135,459.44 336,517.48 1,387.55 12,142.02 170,841.18 73,097.83 257,468.58
Acquisition cost, Dec. 31 201,058.04 135,459.44 336,517.48 1,387.55 12,142.02 170,841.18 73,097.83 257,468.58
Accumulated depreciation, Jan. 1 -201,058.04 -54,183.60 -255,241.64 -12,142.02 -154,858.33 -167,000.35
Depreciation and amortization for the period -25,946.76 -25,946.76 -10,317.45 -10,317.45
Accumulated depreciation, Dec. 31 -201,058.04 -80,130.36 -281,188.40 -12,142.02 -165,175.78 -177,317.80
Carrying amount, Dec. 31, 2021 0.00 55,329.08 55,329.08 1,387.55 0.00 5,665.40 73,097.83 80,150.78
2.1 Intangible and tangible assets
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■
INVESTMENTS
EUR
Subsidiary
shares
Other
shares Total
Carrying amount, Jan. 1 83,243,469.45 161,000.45 83,404,469.90
Additions/Disposals -1,586,338.33 -1,586,338.33
Carrying amount, Dec. 31, 2022 81,657,131.12 161,000.45 81,818,131.57
Carrying amount, Jan. 1 83,243,469.45 161,000.45 83,404,469.90
Carrying amount, Dec. 31, 2021 83,243,469.45 161,000.45 83,404,469.90
Kauko Oy’s subsidiary shares were sold during the 2022 financial year. Kauko GmbH’s subsidiary shares were redeemed free of charge from
Kauko Oy before the divestment of the company
Subsidiaries of Aspo Oyj Share
ESL Shipping Ltd, Helsinki 100%
Telko Ltd, Espoo 100%
SuHi- Suomalainen Hiili Oy, Helsinki 100%
Leipurin Plc, Helsinki 100%
Kauko GmbH, Hamburg 100%
Aspo Services Ltd, Helsinki 100%
2.2 Investments
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■
NON-CURRENT RECEIVABLES
EUR 2022 2021
Receivables from Group companies
Loan receivables 102,773,786.00 102,038,786.00
Total non-current receivables 102,773,786.00 102,038,786.00
■
CURRENT RECEIVABLES
EUR 2022 2021
Receivables from Group companies
Interest receivables 52,000.00
Dividend receivables 12,000,000.00 8,000,000.00
Group contribution receivables 2,500,000.00 3,030,000.00
Cash pool receivables 1,144,075.74 4,614,787.11
Total 15,696,075.74 15,644,787.11
Other receivables 138,437.28 128,145.77
Deferred receivables
Interest 6,492.36
Personnel costs 3,002.80 1,335.81
Other deferred receivables 243,140.41 194,887.31
Total other current receivables 246,143.21 202,715.48
Total current receivables 16,080,656.23 15,975,648.36
2.3 Non-current and current receivables
2.4 Equity
■
EQUITY
EUR 2022 2021
Share capital, Jan. 1 17,691,729.57 17,691,729.57
Share capital, Dec. 31 17,691,729.57 17,691,729.57
Share premium reserve, Jan. 1 4,351,173.64 4,351,173.64
Share premium reserve, Dec. 31 4,351,173.64 4,351,173.64
Invested unrestricted equity reserve, Jan. 1 21,324,170.25 21,324,170.25
Share-based payments, gain on sale of treasury shares 46,135.04
Invested unrestricted equity reserve, Dec. 31 21,370,305.29 21,324,170.25
Retained earnings, Jan. 1 28,283,146.34 23,303,887.79
Share-based payments 254,965.76
Dividend distribution -14,108,588.05 -10,940,345.15
Retained earnings, Dec. 31 14,429,524.05 12,363,542.64
Profit for the period 7,544,383.09 15,919,603.70
Total equity 65,387,115.64 71,650,219.80
■
CALCULATION REGARDING DISTRIBUTABLE EQUITY
EUR 2022 2021
Invested unrestricted equity reserve 21,370,305.29 21,324,170.25
Retained earnings 14,429,524.05 12,363,542.64
Profit for the period 7,544,383.09 15,919,603.70
Total 43,344,212.43 49,607,316.59
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2.5 Provisions
■
PROVISIONS
EUR 2022 2021
Share based incentive plan 318,262.50 253,328.00
Total 318,262.50 253,328.00
■
NON-CURRENT LIABILITIES
EUR 2022 2021
Bonds 14,982,968.75 14,973,158.75
Hybrid bond 30,000,000.00 20,000,000.00
Loans from financial institutions 72,500,000.00 75,000,000.00
Total 117,482,968.75 109,973,158.75
Liabilities to Group companies
Loans 854,000.00
Total 854,000.00
Total non-current liabilities 117,482,968.75 110,827,158.75
In June, Aspo issued a new EUR 30 million hybrid bond, with a coupon rate of 8.75% per annum. The hybrid bond has
no maturity, but the company may exercise an early redemption option in June 2025 at the earliest. Aspo’s earlier hybrid
bond of EUR 20 million was redeemed on May 2, 2022.
During 2022, Aspo extended its maturity structure for interest-bearing loans. In addition, Aspo restructured a bilateral
bank loan of EUR 20 million, about to mature in 2023, with a new bilateral revolving credit facility which will mature in
2025. The loan agreement also includes two options for a one-year extension.
In 2021, Aspo Plc refinanced a bilateral bank loan of EUR 15 million, about to mature in 2022, with a new loan agree-
ment which will mature in 2025. The agreement also includes a one-year extension option. In addition, the company
repaid an EUR 11 million private placement bond issued in 2015 and signed a new bilateral loan agreement of EUR 10
million. The loan period is six years, and the agreement includes a one-year extension option.
On September 25, 2019, Aspo Plc issued a EUR 15 million unsecured private placement bond as part of the group
bond of EUR 40 million guaranteed by Garantia Insurance Company. The bond pays fixed interest rate and matures on
September 25, 2024.
2.6 Non-current liabilities
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2.7 Current liabilities
■
CURRENT LIABILITIES
EUR 2022 2021
Loans from financial institutions
Loans from financial institutions 12,500,000.00 2,500,000.00
Commercial papers 5,000,000.00
Total 12,500,000.00 7,500,000.00
Liabilities to Group companies
Loans 2,428,571.36
Cash pool accounts 11,782,829.37 11,508,185.73
Accounts payable 20,718.03 66,783.98
Deferred liabilities 5,277.87
Total 11,803,547.40 14,008,818.94
Deferred liabilities
Interest 1,635,360.33 1,297,483.95
Personnel expenses 917,058.18 787,194.52
Other 101,881.62 980,812.32
Total 2,654,300.13 3,065,490.79
2.8 Guarantees and contingent liabilities
■
FUTURE LEASE PAYMENTS
EUR 2022 2021
Payable within one year 1,008,918.84 1,132,187.03
Payable later 276,626.72 1,464,723.85
Total 1,285,545.56 2,596,910.88
■
GUARANTEES ON OWN BEHALF
EUR 2022 2021
Guarantees 94,911.34 94,911.34
Total 94,911.34 94,911.34
■
GUARANTEES ON BEHALF OF GROUP COMPANIES
EUR 2022 2021
Guarantees 78,467,668.35 76,869,557.36
Total 78,467,668.35 76,869,557.36
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Signature of the Financial Statements and the Management Report
Helsinki, February 15, 2023
Heikki Westerlund Patricia Allam
Chairman of the Board Board member
Mammu Kaario Tapio Kolunsarka
Board member Board member
Mikael Laine Salla Pöyry
Board member Board member
Tatu Vehmas
Board member
Rolf Jansson
CEO
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ASPO’S YEAR 2022
(Translation from the Finnish original)
Auditor’s report
To the Annual General Meeting of Aspo Oyj
REPORT ON THE AUDIT OF FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of Aspo Oyj
(business identity code 1547798-7) for the year ended 31
December, 2022. The financial statements comprise the
consolidated statement of financial position, statement of
comprehensive income, statement of changes in equity,
statement of cash flows and notes, including a summary
of significant accounting policies, as well as the parent
company’s balance sheet, income statement, cash flow
statement and notes to the financial statements.
In our opinion
• the consolidated financial statements give a true and
fair view of the group’s financial performance and finan-
cial position in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU; and
• the financial statements give a true and fair view of the
parent company’s financial performance and financial
position in accordance with the laws and regulations
governing the preparation of financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report sub-
mitted to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good audit-
ing practice are further described in the Auditor’s Respon-
sibilities for the Audit of Financial Statements section of
our report.
We are independent of the parent company and of the
group companies in accordance with the ethical require-
ments that are applicable in Finland and are relevant to
our audit, and we have fulfilled our other ethical responsi-
bilities in accordance with these requirements.
According to our best knowledge and understanding all
services other than the statutory audit we have provided
for parent company and group companies comply with
regulations governing the services other than the statu-
tory audit in Finland. We have not provided any prohibited
non-audit services re-ferred to in Article 5(1) of regulation
(EU) 537/2014. All services other than the statutory audit
which we have provided have been disclosed in note 3.5.
to the consolidated financial statements and in note 1.5
to the parent company’s financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opin-
ion.
Key audit matters
Key audit matters are those matters that, in our profes-
sional judgment, were of most significance in our audit of
the financial statements of the current period. These mat-
ters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opin-
ion thereon, and we do not provide a separate opinion on
these matters.
We have also addressed the risk of management override
of internal controls. This includes consideration of whether
there was evidence of management bias that represented
a risk of material misstatement due to fraud.
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ASPO’S YEAR 2022
Key audit matter How our audit addressed the key audit matter
Discontinued Operations
We refer to the Aspo Oyj’s consolidated financial statements’ note 1.3.
On October 17, 2022, Telko signed a binding preliminary agreement on
selling all shares in its subsidiary in Russia. The sales price is approxi-
mately EUR 9.5 million. The transaction still needs to be approved by
the Russian authorities. Telko’s company in Russia has been classified
as held for sale since October 2022 when the preliminary agreement
on the sale was signed. Telko’s company in Belarus has been classified
as held for sale since December 2022 when the agreement on the sale
was signed with the company’s acting management.
Leipurin’s companies in Russia, Belarus and Kazakhstan have been clas-
sified as held for sale since December 31, 2022 when their divestment
started to seem probable. A binding preliminary agreement on their
sale was signed on January 17, 2023. The sales price is approximately
EUR 8.4 million. The transaction still needs to be approved by the local
authorities.
The Kauko operating segment and Vulganus Oy, part of the Leipurin
segment, were defined as non-core businesses for Aspo and classified
as held for sale in December 2021:
• The Kauko operating segment has been classified as a discontinued
operation in accordance with the IFRS 5 standard, and its figures
are reported separately from the figures of Aspo Group’s continuing
operations. In the statement of comprehensive income, the figures
of the comparative periods have been restated. Kauko Oy was sold
on October 31, 2022.
• Vulganus Oy, a machinery business specified for freezing and cooling
equipment, was divested on June 30, 2022. The loss arising from
the divestment and the expenses related to it, totaling EUR -0.4
million, are reported under the Leipurin segment’s other operating
expenses.
The accounting treatment for discontinued operations is a key audit
matter, because the accounting treatment for changes in the group
structure and the classification of discontinued operations and busi-
nesses for sale in accordance with IFRS 5 involves significant manage-
ment judgment and the changes have a material impact on the financial
statements.
Our audit procedures have consisted e.g. the
following amongst others:
• We gained an understanding of the
group’s accounting principles related to
business acquisitions and divestments and
discontinued operations.
• We evaluated how the management
has applied accounting principles and
assumptions related to accounting practices.
• Regarding the major divested and
discontinued businesses, we tested the sales
result determined by the management and
the effect of the transaction to the goodwill.
• We evaluate the appropriate presentation of
discontinued operations in the financial.
Key audit matter How our audit addressed the key audit matter
Goodwill impairment testing
We refer to the Aspo Oyj’s consolidated financial statements’ note 4.3.
Consolidated financial statements as of 31.12.2022
includes Goodwill amounting to EUR 36.8 million
(EUR 37.1 million). Management has conducted
goodwill impairment testing and as a result of the
testing conducted has accounted for impairment
over goodwill amounting EUR 2.7 million as at
31.12.2022.
Goodwill impairment testing requires substan-
tial management judgment over the recoverable
amounts which are for example associated to fol-
lowing assumptions and estimates:
• estimations over the projected future cash flow;
• long term growth assumptions; and
• applied discount rate.
For further details over the goodwill impairment
testing conducted by the management is presented
in the note 4.3. within the consolidated financial
statements.
This matter is regarded as significant risk of material
misstatement in accordance with EU Audit Regula-
tion (537/2014) Article 10 paragraph 2 c.
As part of our audit procedures we have critically
evaluated the estimates over the future recovera-
ble cash flows and we have compared, that the fore-
casts used in the impairment tests are based on
approved long-term forecast and budgets approved.
We have assessed appropriateness of impairment
testing calculations.
We have assessed the impairment testing of good-
will booked to the consolidated financial statements
as at 31.12.2022 by:
• evaluating the key assumptions applied per
segment applied
• assessing the growth estimates and comparing
them to historical performance
• comparing applied discount rates to independent
third party sources
• assessing the sensitivity analysis over the long
term assumptions and discount rate.
• We have used Deloitte’s fair value specialist to
ensure that the discount rates and long-term
growth assumptions are in line with the market
information.
We have also assessed the sensitivity analysis,
which is disclosed in the consolidated financial state-
ments note 4.3. for the factors where a reasonably
possible change in certain variables could lead to sig-
nificant impairment.
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ASPO’S YEAR 2022
Responsibilities of the Board of Directors and the
Chief Executive Officer for the financial statements
The Board of Directors and the Chief Executive Officer are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance
with International Financial Reporting Standards (IFRS) as
adopted by the EU, and of financial statements that give
a true and fair view in accordance with the laws and regu-
lations governing the preparation of financial statements
in Finland an comply with statutory requirements. The
Board of Directors and the Chief Executive Officer are also
responsible for such internal control as they determine
is necessary to enable the preparation of financial state-
ments that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Board of Direc-
tors and the Chief Executive Officer are responsible for
assessing the parent company’s and the group’s ability to
continue as going concern, disclosing, as applicable, mat-
ters relating to going concern and using the going con-
cern basis of accounting. The financial statements are pre-
pared using the going concern basis of accounting unless
there is an intention to liquidate the parent company or
the group or cease operations, or there is no realistic alter-
native but to do so.
Auditor’s responsibilities in the audit
of financial statements
Our objectives are to obtain reasonable assurance on
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Rea-
sonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with
good auditing practice will always detect a material mis-
statement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or
in aggregate, they could reasonably be expected to influ-
ence the economic decisions of users taken on the basis
of the financial statements.
As part of an audit in accordance with good auditing prac-
tice, we exercise professional judgment and maintain pro-
fessional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or
error, design and perform audit procedures respon-
sive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstate-
ment resulting from fraud is higher than for one result-
ing from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the over-
ride of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the pur-
pose of expressing an opinion on the effectiveness of
the parent company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of the Board of Direc-
tors’ and the Chief Executive Officer use of the going
concern basis of accounting and based on the audit evi-
dence obtained, whether a material uncertainty exists
related to events or conditions that may cast signifi-
cant doubt on the parent company’s or the group’s abil-
ity to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclo-
sures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or
Key audit matter How our audit addressed the key audit matter
Revenue recognition (continuing operations)
We refer to the consolidated financial statements’ note 3.1.
In the financial year 2022 Aspo Group’s revenue from
continuing operations amounted to EUR 643.4 million
(EUR 573.3 million), which mainly consists of sale of
goods, but also from services sold to customers.
Minor part of the revenue consists of revenue recog-
nized from order customer specific projects on which
revenue is recognized over time in Leipurin-segment.
Revenue from sale of goods is recognized when the
control of the underlying products have been trans-
ferred to the customer. Revenue from services is recog-
nized after the service has been rendered.
Revenue is Group’s key performance indicator, which
may be an incentive for premature revenue recognition.
We have assessed the internal controls of Aspo Group’s
information technology systems relating to sales pro-
cess and revenue recognition focusing of access con-
trols and change management controls.
We have assessed the design of main controls relating
to major revenue streams and assessed the operating
effectiveness of these controls.
We have assessed of the compliance of company’s
accounting policies over revenue recognition and com-
parison with applicable accounting standards.
We have audited correctness of timing and amounts of
revenue recognized based on samples and substantive
analytical audit procedures and comparison with applica-
ble accounting standards.
As part of our audit of revenue recognition policies we
have compared of sales transactions in the bookkeeping
records against customer contracts and verification of
acceptance of deliveries.
We have assessed appropriateness and adequacy of
consolidated financial statement notes related to reve-
nue.
We have not identified significant risks of material misstatement in accordance with EU Audit Regulation (537/2014)
Article 10 paragraph 2 c in the parent company’s financial statements.
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATION
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ASPO’S YEAR 2022
conditions may cause the company to cease to con-
tinue as a going concern.
• Evaluate the overall presentation, structure, and con-
tent of the financial statements, including the disclo-
sures, and whether the financial statements represent
the underlying transactions and events so that the
financial statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regard-
ing the financial information of the entities or business
activities within the group to express an opinion on the
consolidated financial statements. We are responsible
for the direction, supervision, and performance of the
group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we iden-
tify during our audit. We also provide those charged with
governance with a statement that we have complied with
relevant ethical requirements regarding independence and
communicate with them all relationships and other mat-
ters that may reasonably be thought to bear on our inde-
pendence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the financial statements
of the current period and are therefore the key audit mat-
ters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
OTHER REPORTING REQUIREMENTS
Information on our audit engagement
We have been appointed as auditors by the Annual Gen-
eral Meeting of Aspo Oyj on 4 May 2020, and our appoint-
ment represents a total period of uninterrupted engage-
ment of 3 years.
Other information
The Board of Directors and the Chief Executive Officer are
responsible for the other information. The other informa-
tion comprises information included in the report of the
Board of Directors and in the Aspo’s Year 2022 publica-
tion but does not include the financial statements and
our report thereon. We obtained the report of the Board
of Directors prior to the date of the auditor’s report, and
the Aspo’s Year 2022 publication is expected to be made
available to us after the date of the auditor’s report.
Our opinion on the financial statements does not cover
the other information.
In connection with our audit of the financial statements,
our responsibility is to read the other information identi-
fied above and, in doing so, consider whether the other
information is materially inconsistent with the finan-
cial statements, or our knowledge obtained in the audit,
or otherwise appears to be materially misstated. With
respect to report of the Board of Directors, our responsi-
bility also includes considering whether the report of the
Board of Directors has been prepared in accordance with
the applicable laws and regulations.
In our opinion, the information in the report of the Board
of Directors is consistent with the information in the infor-
mation in the financial statements and the report of the
Board of Directors has been prepared in accordance with
the applicable laws and regulations.
If, based on the work we have performed, we conclude
that there is a material misstatement in of the informa-
tion included in the report of the Board of Directors, we
are required to report this fact. We have nothing to report
in this regard.
Helsinki, 15 February 2023
Deloitte Oy
Audit Firm
Jukka Vattulainen
Authorised Public Accountant (KHT)
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATION
137
ASPO’S YEAR 2022
Information for investors
ASPO PLC’S INVESTOR RELATIONS
The disclosure policy of Aspo Plc describes the general
principles and procedures that the Company adheres to in
its communication with the capital markets and its main
stakeholders. The disclosure policy can be found on com-
pany’s website.
The key principles of Aspo’s investor communications
are transparency, accuracy and fairness. Aspo meets and
proactively interacts with the capital markets and the
media. The aim of Aspo’s communications is to support
the fair value of the Company’s shares by providing the
capital markets with correct, sufficient and relevant infor-
mation on Aspo’s operations, strategy, targets, opera-
tional environment and financial position.
Aspo’s Investor communications manages the arrange-
ments of the Capital Markets Days and other events for
investors and analysts, and analyzes market information
and investor feedback for the use of Aspo Group’s man-
agement and Board of Directors.
SILET PERIOD
Aspo has adopted a silent period of 30 days prior to the
publication of results. During this period, no comments on
the financial situation, company’s outlook or estimates will
be made. During this period, the company does not meet
investors, analysts or media in events where these issues
are discussed.
FURTHER INVESTOR INFORMATION
Aspo’s website at www.aspo.com offers also versatile fur-
ther investor information, such as the latest share infor-
mation and consensus estimates based on expectations
and predictions by the analysts following Aspo. At the
web address www.aspo.com it is also possible to order all
stock exchange releases and press releases to your e-mail.
ANNUAL SHAREHOLDERS’ MEETING
The Aspo Plc Annual Shareholders’ Meeting will be held
on Tuesday, April 4, 2023 at 10 a.m. at Pörssitalo, Hel-
sinki. A shareholder wishing to participate in the Annual
Shareholders’ Meeting shall register for the Annual Share-
holders’ Meeting and, if applicable, vote in advance no
later than at 4 p.m. Finnish time on March 28, 2023 by
which time the registration and the advance votes shall
be received. More detailed instructions for shareholders
will be provided in the notice of the meeting which will be
released on March 13, 2023. A proxy form and advance
voting form will be available on the company’s website at
www.aspo.com/shareholdersmeeting on March 13, 2023,
at the latest.
DIVIDEND PAYMENTS
The Board of Directors proposes to the Annual Sharehold-
ers’ Meeting of Aspo Plc to be held on April 4, 2023, that
EUR 0.23 per share be distributed in dividends for the
2022 financial year, and that no dividend will be paid for
shares held by Aspo Plc. In addition, the Board of Direc-
tors proposes that the Annual Shareholders’ Meeting
authorizes the Board of Directors to decide on another
dividend distribution in the maximum amount of EUR 0.23
per share at a later time. The authorization would be valid
until the next Annual Shareholders’ Meeting.
The dividend of EUR 0.23 per share will be paid to
shareholders who are registered in the shareholders’ regis-
ter maintained by Euroclear Finland Ltd on the record date
of April 6, 2023. The Board of Directors proposes that the
dividend be paid on April 17, 2023. The Board of Direc-
tors will decide at its meeting to be held on November 1,
2023, about the second dividend distribution in the maxi-
mum amount of EUR 0.23 per share, which would be paid
in November 2023 to shareholders who are registered in
the shareholders’ register maintained by Euroclear Finland
Ltd on the record date.
FINANCIAL REPORTING IN 2023
• Financial Statement Release was published
on February 15, 2023
• Financial Statements and Sustainability report 2022
was published on March 9, 2023
• Interim Report for January–March
on Wednesday, May 3, 2023
• Half Year Financial Report for January–June
on Thursday, August 10, 2023
• Interim Report for January–September
on Wednesday, November 1, 2023
Aspo’s financial information is published on the company’s
website at www.aspo.com, including financial statements,
interim reports, half year financial reports and stock
exchange releases in Finnish and in English. Reports can
also be ordered by phone +358 9 521 41 00 or by e-mail
from viestinta@aspo.com.
CONTACT INFORMATION
For any further information concerning Aspo’s investor
relations issues, please contact:
Rolf Jansson, CEO
Tel. +358 9 521 40 00
rolf.jansson@aspo.com
Arto Meitsalo, CFO
Tel. +358 9 521 40 20
arto.meitsalo@aspo.com
BASIC SHARE INFORMATION
• Listed on: Nasdaq Helsinki Ltd
• Industry sector: Industrials
• Category: Mid Cap
• Trading code: ASPO
• ISIN code: FI0009008072
ASPO YEAR 2022 GOVERNANCEBUSINESSES SUSTAINABILITY MANAGEMENT REPORT FINANCIAL STATEMENTS INVESTOR INFORMATION
138
ASPO’S YEAR 2022
Independent Auditor’s Report on the ESEF
Consolidated Financial Statements of Aspo Oyj
To the Board of Directors of Aspo Oyj
We have performed a reasonable assurance engagement on
whether the iXBRL tagging of the consolidated financial state-
ments in the ESEF consolidated financial statements (aspoplc-
2022-12-31-fi.zip) of Aspo Oyj (1547798-7) for the financial
year 1.1.–31.12.2022 has been prepared in accordance with
the requirements of Article 4 of Commission Delegated Regu-
lation (EU) 2018/815 (ESEF RTS).
Responsibilities of the Board of Directors
and the Managing Director
The Board of Directors and Group CEO are responsible for the
preparation of the report of the Board of Directors and finan-
cial statements (ESEF financial statements) that comply with
the requirements of ESEF RTS. This responsibility includes
• preparation of ESEF financial statements in XHTML format
in accordance with Article 3 of ESEF RTS
• tagging the consolidated financial statements’ primary
statements, disclosures and identifying information in the
ESEF financial statements with iXBRL tags in accordance
with Article 4 of ESEF RTS, and
• ensuring consistency between ESEF financial statements
and audited financial statements
The Board of Directors and the Group CEO are also responsible
for such internal control as they determine is necessary to ena-
ble the preparation of ESEF financial statements in accordance
with the requirements of ESEF RTS.
Auditor’s Independence and Quality Control
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are rele-
vant to the engagement we have performed, and we have ful-
filled our other ethical responsibilities in accordance with these
requirements.
The auditor applies International Standard on Quality Man-
agement 1 and, accordingly, an audit firm shall design, imple-
mentand maintain a system of quality control including poli-
cies and procedures regarding compliance with ethical require-
ments, professional standards, and applicable legal and
regulatory requirements.
Auditor’s Responsibilities
In accordance with the engagement letter, we express an opin-
ion on whether the tagging of the consolidated financial state-
ments in the ESEF financial statements has been prepared in
all material respects in accordance with the requirements of
Article 4 of ESEF RTS. We conducted a reasonable assurance
engagement in accordance with International Standard on
Assurance Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
• whether the tagging of the consolidated financial state-
ment’s primary statements in the ESEF financial statements
has been prepared in all material respects in accordance
with the requirements of Article 4 of ESEF RTS
• whether the tagging of the consolidated financial state-
ments’ disclosures and identifying information in the ESEF
financial statements has been prepared in all material
respects in accordance with the requirements of Article 4 of
ESEF RTS, and
• whether the ESEF financial statements are consistent with
the audited financial statements.
The nature, timing and extent of the procedures selected
depend on the auditor’s judgment. This includes the assess-
ment of risk of material departures from the requirements set
out in ESEF RTS, whether due to fraud or error.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the tagging of the consolidated financial state-
ments in the ESEF financial statements (aspoplc-2022-12-
31-fi.zip) of Aspo Oyj for the financial year 1.1.–31.12.2022
has been prepared in all material respects in accordance with
the requirements of Article 4 of ESEF RTS.
Our audit opinion on the consolidated financial statements
of Aspo Oyj for the financial year 1.1 -31.12.2022 has been
expressed in our auditor’s report dated 15.2.2023. In this
report, we do not express an audit opinion or any other assur-
ance conclusion on the consolidated financial statements.
Helsinki, March 9, 2023
Deloitte Oy
Audit Firm
Jukka Vattulainen
APA
(Translation of the
Finnish Original)