AAKs Interim Report for the fourth quarter and Year-end Report, 2012 - - PowerPoint PPT Presentation

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aak s interim report for the fourth quarter and year end
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AAKs Interim Report for the fourth quarter and Year-end Report, 2012 - - PowerPoint PPT Presentation

Nov 14, 2023 243 likes •519 views

Arne Frank CEO Peter Korsholm CFO Fredrik Nilsson Director IR AAKs Interim Report for the fourth quarter and Year-end Report, 2012 Agenda Year-end and fourth quarter 2012 Business Area information AAK Acceleration Q & A 2 Q4

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AAK’s Interim Report for the fourth quarter and Year-end Report, 2012

Arne Frank

CEO Peter Korsholm CFO Fredrik Nilsson Director IR

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2

Agenda

Year-end and fourth quarter 2012 Business Area information AAK Acceleration Q & A

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Q4 2012

Volume*

´000 MT

Sales

SEK Million

EBIT*

SEK Million

EBIT/kg*

SEK

EPS

SEK

Net debt

SEK million

+10 % + 7 %

  • 6 %

+ 2 % + 4 %

394 (385) 292 (265) 4,205 (4,483) 5.01 (4.82) 0.74 (0.69)

* Adjusted for Sandy

  • 20%

2,521 (3,141)

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Fourth quarter 2012

Operating profit* reached a record high of SEK 292 million (265), an improvement of 10 percent

  • Food Ingredients reached a record high of SEK 220

million (151), an improvement of 46 percent

  • Chocolate & Confectionery Fats reached SEK 82

million (115)

  • Technical Products & Feed reported stable profits at

SEK 21 million (21)

Operating profit per kilo adjusted for Sandy amounted to SEK 0.74 (0.69)

  • A continuing trend away from low margin commodity

volumes

  • Exceptional favourable product mix and unusual high

production yields within Food Ingredients

Cash flow from operating activities amounted to SEK 439 million (499)

* Adjusted for Sandy

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Full year 2012

Volume*

´000 MT

Sales

SEK Million

EBIT*

SEK Million

EBIT/kg*

SEK

EPS

SEK

DPS/SEK

(proposed)

+ 9 % + 4% + 6 % + 6 %

1,511 (1,426) 1,003 (918) 16,911 (16,695) 15.66 (14.72) 0.66 (0.64)

+ 1 % + 3 %

* Adjusted for Sandy and acquisition related costs

+ 11 %

5.25 (4.75)

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Financial summary

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, SEK/Kg Quarter, SEK/Kg

AAK Group - Operating profit per kilo*

Quarter Rolling 12 months 200 400 600 800 1 000 1 200 50 100 150 200 250 300 350 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, SEK million Quarter, SEK million

AAK Group - Operating profit*

Quarter Rolling 12 months

* Adjusted for Sandy and acquisition related costs

200 400 600 800 1 000 1 200 1 400 1 600 1 800 50 100 150 200 250 300 350 400 450 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, '000 MT Quarter, '000 MT

AAK Group - Volume*

Quarter Rolling 12 months

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Working capital days Rolling 6 months

  • 2
  • 2
  • 8
  • 12

71 68 62

71

  • 40
  • 30
  • 20
  • 10

10 20 30 40 50 60 70 80 90 100 110

  • 40
  • 30
  • 20
  • 10

10 20 30 40 50 60 70 80 90 100 110 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Inventory Accounts receivables Accounts payables Others AAK Group

72 71 68 62 60

Days reduction

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Strong cash flow

SEK million Q4 2012 Q4 2011 Full year 2012 Full year 2011 EBITDA 357 346 1,332 1,264 Other items not affecting cash flow 1 5 7 4 Paid interest

  • 23
  • 17
  • 112
  • 98

Paid tax

  • 8
  • 124
  • 267
  • 268

Change in working capital 112 289 589

  • 613

Cash flow from operating activities incl change in working capital 439 499 1,539 289 Cash flow from investments

  • 99
  • 97
  • 794
  • 670

Free cash flow 340 402 745

  • 381

The first choice for value-added vegetable oil solutions

Cash flow from operating activities including changes in working capital was positive SEK 439 million (499)

  • Positive cash flow from reduction in working capital was

SEK 112 million (289)

Cash flow, after net investments of SEK 99 million (97) was SEK 340 million (402)

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RONA – 31 December 2012 14.6 %

EBIT SEK 1,003 million Working capital SEK 2,761 million Fixed assets SEK 4,067 million

Unchanged EBIT but a decrease in working capital by 10 % will imply a RONA improvement of 0.4 % Improved EBIT by 10 % but with unchanged working capital will imply a RONA improvement of 1.4 %

6,0% 7,0% 8,0% 9,0% 10,0% 11,0% 12,0% 13,0% 14,0% 15,0% Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

R12M Quarter

Return on Net Operation Assets – Rolling 12 months *

* Adjusted for Sandy and acquisition related costs

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Raw material prices

10 percent change in all raw material prices will effect working capital by +/-SEK 250 million Time lag of six to nine months

200 400 600 800 1 000 1 200 1 400 1 600 1 800 USD/MT

Rapeseed Palm

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Share of volume Nord WE UK USA CEE CIS Asia LA

Food Ingredients

62 %

Chocolate & Confectionery Fats

20 %

Technical Products & Feed

18 %

AAK Group

100 %

11

Business trends year to date

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Fourth quarter 2012

A record high operating profit* reached SEK 220 million (151) This extraordinary high operating profit is a result of:

  • A well received and executed strategy
  • Favourable product mix
  • Production efficiency above our expectations going forward

Operating profit per kilo* improved substantially by 37 percent

  • From SEK 0.65 per kilo to SEK 0.89 per kilo

Volume growth by 6 percent

  • For comparable units volumes decreased by 6 percent
  • Further drop in commodity volumes in the UK and in

Scandinavia

  • Continued strong developments in many speciality product

areas, in particular for Bakery and Infant Nutrition

Food Ingredients

+46%

* Adjusted for Sandy

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Food Ingredients

100 200 300 400 500 600 700 800 50 100 150 200 250 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, SEK million Quarter, SEK million

Food Ingredients -Operating profit*

Quarter Rolling 12 months

0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, SEK/kg Quarter, SEK/kg

Food Ingredients -Operating profit per kilo*

Quarter Rolling 12 months

* Adjusted for Sandy

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Chocolate &Confectionery Fats

Fourth quarter 2012

The operating result adjusted for Sandy reached SEK 82* million (115) Operating profit per kilo at SEK 1.04* (1.39)

  • Down mainly due to a decrease in volumes and product mix

Volumes declined by 5 percent The business area continues to be challenged by the market conditions and the pressure on CBE

  • 29%

* Adjusted for Sandy

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Chocolate & Confectionery Fats

100 200 300 400 500 600 20 40 60 80 100 120 140 160 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, SEK million Quarter, SEK million

Chocolate & Confectionery Fats - Operating profit*

Quarter Rolling 12 months

* Adjusted for Sandy

0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60 1,80 2,00 2,20 2,40 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60 1,80 2,00 2,20 2,40 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, SEK/kg Quarter, SEK/kg

Chocolate & Confectionery Fats - Operating profit per kilo*

Quarter Rolling 12 months

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Technical Products & Feed

Fourth quarter 2012

Operating profit of SEK 21 million (21) Remained stable despite the challenging business climate Volumes decreased by 1 percent The next quarters will continue to be challenging with modest improvements

+0%

  • 10

10 30 50 70 90 110 130 150 5 10 15 20 25 30 35 40 45 50 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12

Rolling 12 months, SEK million Quarter, SEK million

Technical Products & Feed - Operating profit

Quarter Rolling 12 months

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Hurricane Sandy

The Oasis Foods plant was back in production on November 5, 2012 The plant in Port Newark was back in production (reduced capacity) on November 26, 2012 and was by the end of the year back at almost full capacity Fourth quarter was negatively impacted on

  • perating profit by SEK 21 million
  • Food Ingredients, SEK 6 million
  • Chocolate & Confectionery Fats, SEK 5 million
  • Group Functions, SEK 10 million

AAK has insurance coverage for property damage and business interruption

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Business area guidance

Food Ingredients

  • We remain optimistic
  • We expect the rate of operating profit improvement

in 2013 to be lower than during 2012. Albeit still double digits

Chocolate & Confectionery Fats

  • Performance expected to stabilize in the first part of

2013

  • If the cocoa butter prices remain at the current

more normal level the performance is expected to start improving significantly during the second half

  • f the year

Technical Products & Feed

  • The next quarters will continue to be challenging

and profitability is expected to slowly improve

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AAK Acceleration - Growth

AAK Acceleration projects KPI Q4 KPI Q3 Bakery Dairy CCF Infant Nutrition Food Service Merger & Acquisition

N.A N.A

Fast-growing economies

  • China
  • Brazil

Ahead of plan On plan Slightly ahead of plan Behind plan

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AAK Acceleration - Efficiency

AAK Acceleration projects KPI Q4 KPI Q3 Purchasing Productivity Ahead of plan On plan Slightly ahead of plan Behind plan

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AAK Acceleration - People

AAK Acceleration projects KPI Q4 KPI Q3 Sales Mobilize Ourselves Internal communication Ahead of plan On plan Slightly ahead of plan Behind plan

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Concluding remarks from CEO

The impact on our industry from the more difficult general economy in Europe, as we all know, difficult to predict However, based on AAK’s customer value propositions for:

  • Health
  • Reduced costs
  • Customer product co development and solutions

approach

  • and the AAK Acceleration program

We continue to remain prudently optimistic for the

  • future. The main drivers are expected to be:
  • Our strong Food Ingredients business
  • The expected recovery in our Chocolate &

Confectionary Fats business. The performance of the Chocolate & Confectionary Fats business is expected to stabilize in the first part of 2013 and, provided the cocoa butter price remains at the current more normal level it is expected to start improving significantly during the second half of 2013

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Questions & Answers

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Financial calendar

Financial calendar 2013

25 April, 2013 First quarter report 3 May, 2013 Annual General Meeting 22 July, 2013 Second quarter report 30 October, 2013 Third quarter report November, 2013 Capital Market Day – Stockholm November, 2013 Capital Market Day – London 4 February, 2014 Fourth quarter and year- end report

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Investor Relations Contacts

Arne Frank

Chief Executive Officer and President Phone: +46 40 627 83 00

Peter Korsholm

Chief Financial Officer Phone: +46 40 627 83 00

Fredrik Nilsson

Director Group Controlling and Investor Relations Phone: +46 40 627 83 34 Mobile: +46 708 95 22 21 E-mail: fredrik.nilsson@aak.com Further Investor Relations material can be found at www.aak.com/en/Investor

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The first choice for value-added vegetable oil solutions