Stock exchange release
April 29, 2019 at 4.30 p.m.
ASPO CHANGES ITS GEARING TARGET FOLLOWING THE ADOPTION OF IFRS 16 STANDARD
IFRS 16 Leases standard became effective as of 1 January, 2019. In accordance with the new standard, Aspo’s future lease liabilities were recognized in the balance sheet on 1 January, 2019, which increased Aspo’s gearing ratio by 31.1 percentage points.
Following the adoption of the new standard, Aspo will change its financial target for gearing ratio to up to 130%. Aspo’s former financial target for gearing was up to 100%.
Adoption of IFRS 16 standard will have no meaningful impact on operating profit and return on equity and hence Aspo’s financial targets for operating profit and return on equity are not changed.
With its current structure, Aspo targets an operating profit of 7%, return on equity of over 20% on average, and gearing of up to 130%. Aspo aims to reach these financial targets by 2020.
For further information, please contact:
Arto Meitsalo, CFO, Aspo Plc, tel. +358 40 5511422, email@example.com
Harri Seppälä, Group Treasurer, tel. +358 400 617 201, firstname.lastname@example.org
Aspo is a conglomerate that owns and develops business operations in Northern Europe and growth markets focusing on demanding b-to-b customers. Our strong company brands - ESL Shipping, Leipurin, Telko and Kauko - aim to be the market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these. Together they generate Aspo's goodwill. Aspo's Group structure and business operations are continually developed without any predefined schedules.