Capital Market Day November 12, 2014 Forward-looking statements - - PowerPoint PPT Presentation

Capital Market Day November 12, 2014

Arne Frank CEO

This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performances, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. AAK has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better

• r worse than anticipated.

Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and AAK does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

Forward-looking statements

2

Agenda

3

10.00 – 10.40 AAKtion

Arne Frank, CEO

10.40 – 11.00 Financial update

Fredrik Nilsson, CFO

11.00 – 11.25 I nfant Nutrition

Karel Stoschek, Director Infant Nutrition

11.25 – 11.40 Short break w ith sam ples 11.40 – 12.10 Dairy

Lena Ingvarsson, Marketing Director Dairy

12.10 – 12.35 Chocolate & Confectionery Fats

Anne Mette Olesen, CMO

12.35 – 13.05 Q&A 13.10 – 14.10 Lunch 14.15 – 16.15 Plant visit

AAK participants

Arne Frank President and CEO Karel Stoschek Director Infant Nutrition Anne Mette Olesen CMO Fredrik Nilsson CFO Lena Ingvarsson Marketing Director Dairy

4

Anders Byström Director IR

January – September

Volume ’000 MT Sales SEK million EBIT* SEK million EBIT per kilo* SEK EPS SEK 1,241 (1,196) 12,958 (12,251) 899 (799) 0.72 (0.67) 14.03 (12.39) + 4 %

Organic –2%

+ 6 % + 1 3 % + 7 % + 1 3 %

5 * Excluding acquisition costs and non-recurring items

0 .7 1 0 .7 2 + 1 % 0.65 0.67 0.69 0.71 0.73 Operating profit per kilo ( SEK) Last year Actual

FI – January to September

6

* For comparable units, volumes decreased by 3 percent

5 5 3 5 8 3 + 5 % 400 450 500 550 600 Operating profit ( SEK m illion) Last year Actual 7 7 6 8 0 7 + 4 % * 650 700 750 800 850 Volum es ( '0 0 0 MT) Last year Actual

FI – January to September

7

0,00 0,25 0,50 0,75 1,00 1,25 1,50 1,75 2,00 2,25 2,50 Bakery Food Service Infant Nutrition Dairy Fat Alternative Frying & Other commodity

SEK/ kg

2010 2011 2012 2013 2014

Volume EBIT/ kg

25 50 75 100 125 150 175 200 225 250 275 300 325 Bakery Food Service Infant Nutrition Dairy Fat Alternative Frying & Other commodity

MT

2010 2011 2012 2013 2014 25 50 75 100 125 150 175 200 225 250 275 Bakery Food Service Infant Nutrition Dairy Fat Alternative Frying & Other commodity

SEK million

2010 2011 2012 2013 2014

EBIT

CCF – January to September

8

* For comparable units, volumes decreased by 1 percent

2 5 4 3 3 2 + 3 1 % 150 200 250 300 350 Operating profit ( SEK m illion) Last year Actual 2 1 9 2 3 0 + 5 % * 50 100 150 200 250 Volum es ( '0 0 0 MT) Last year Actual 1 .1 6 1 .4 4 + 2 4 % 0.80 1.00 1.20 1.40 1.60 Operating profit per kilo ( SEK) Last year Actual

Current market growth estimates

9

0-2% + 3-5% 0% + 6-10% + 3-6% 0%

• 12-18%

AAK y t d vs market growth

10

0-2% + 3-5% 0% + 6-10% + 3-6%

• 12-18%

0%

Mid/ long term expectations

11

0-2% + 3-5% + 6-10% + 3-6% 0-2% + 2-5% + 3-5%

12

Since last Capital Market Day

AAKtion Acquisitions

• CSM Oils & Fats Benelux NV, Belgium
• Fanagra, Colombia
• Additional brand from Unilever, Turkey

Divestment

• Binol

Greenfields

• Brazil
• China

Product development

AAK Acceleration

13

Sales Customer co-developm ent Innovation Service Quality Productivity

14

Raw material prices

15

200 400 600 800 1,000 1,200 1,400 1,600 1,800 USD/ ton Rapeseed oil Palm oil

Cocoa butter price

16

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 USD/ ton

Medium and fast growing markets*

17

* Management ambition – edible oil volumes  Nordics  West Europe  USA  CEE  CIS  Asia  Latin America

6 9 % 6 2 % 4 7 % 4 0 % 4 0 % 3 0 % 1 8 % 1 8 % 3 1 % 3 5 % 3 4 % 1 3 % 2 0 % 2 2 % 2 5 % 2 6 % 7 0 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2009 2012 2013 2014 2015-2016* Slow growing markets Medium growing markets Fast growing markets

AAK investing in Brazil

A new speciality and semi-speciality edible

• ils factory in Jundiaí, São Paulo, Brazil

This investment is expected to amount to

• approx. SEK 400 million over a two-year

period The main start-up of the new factory is planned for the latter part of 2015 The factory will strengthen our ability to locally supply Bakery and Dairy solutions as well as further develop our CCF business in Brazil The new factory will include a state of the art Innovation Center

18

AAK investing in China

A new speciality and semi-speciality edible oils factory in Zhangjiagang

• The region has the highest GDP per capita in mainland

China

• Chinese center for inbound and outbound logistics for

efficient national coverage

The investment is expected to amount to approx. SEK 400 million over a two-year period The start-up of the new factory is planned for the beginning of 2016 Fully utilized, the capacity will be approx. 100,000 MT, with room for further expansion at a later stage The plant will be able to serve our Bakery, Dairy, Infant Nutrition and CCF segments

19

Fabrica Nacional de Grasas S.A. (FANAGRA)

Located in Colombia

• Headquartered in Bogotá
• Factory in Villavicencio

Specializes in vegetable oils and fats for the bakery segment Revenues of approximately SEK 270 million in 2013 Annual volume of 30,000 MT Employs 155 people Limited impact on 2014 operating profit Will fully contribute starting January 2015

20

AAK has acquired bakery fats specialist in Belgium

CSM, a leading bakery fats supplier to the bakery markets in Belgium, the Netherlands, France and Germany The acquired business had revenues of approx. SEK 970 million and volumes of approx. 100,000 MT in 2013 The transaction includes:

• Production facility in Merksem, Belgium
• Variety of bakery fat solutions, margarines and

pumpable shortenings

• Experienced sales force
• Team of application specialists
• Bakery innovation center

21

Product development – FI

 Akopastry – Low fat

• Going from typical 82% fat to 60% fat
• No loss in functionality, appearance or taste

 Akomix LS 25

• Developed for ice cream products
• Reduces the SAFA with more than 70%
• Nominated for FIE award, Dairy Innovation
• f the year

22

Product development – CCF

 Illexao™ MT 20

• Improved milk fat tolerance resulting in

improved processing

 Chocofill™ NH 110

• For steep melting non-hydrogenated fillings

without tempering

• Nominated for Confectionery

Innovation of the year at FIE

23

Product development – PC

 Lipex SheaLight TM

• New sustainable light emollient ester derived

from natural resources

• An ideal emollient for skin, hair care and

sun care

• Very first shea product that maintains the skin

nourishing properties of shea, while leaving the skin with a dry and powdery feel

• Shea emollients known for their skin nourishing,

moisturising and anti-inflammatory properties

• Good solubiliser of UV filters in sunscreens

24

Management growth ambition*

25

8 0 0 8 0 0 4 0 0 4 0 0

2010 In appr 5-6 years

* As expressed at the Capital Market Day November 10, 2010 and at fixed exchange rates.

Acquisitions Organic growth Productivity Operating profit 2010

2 0 1 5 – Organic grow th

26