[PPT] - Financial update A strong financial foundation Volum es ( '0 0 0 PowerPoint Presentation

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Financial update

Fredrik Nilsson CFO

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824 911 996 1,117 400 500 600 700 800 900 1,000 1,100 1,200 2010 2011 2012 2013

EBI T ( SEK m illion)

1,441 1,426 1,511 1,620 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 2010 2011 2012 2013

Volum es ( '0 0 0 MT)

13% 13% 14% 16% 9% 10% 11% 12% 13% 14% 15% 16% 17% 2010 2011 2012 2013

ROCE ( R1 2 M)

A strong financial foundation

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EPS and DPS evolution

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14.7 15.7 17.9 4.75 5.25 6.00 + 6% + 14% + 11% + 14% 0.0 5.0 10.0 15.0 20.0 2011 2012 2013 EPS (SEK) DPS (SEK)

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2 2 % 2 1 % 2 8 % 2 9 % 0% 5% 10% 15% 20% 25% 30% 35% Q1 Q2 Q3 Q4

AAK Group

Seasonality*

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* Average EBIT, 2010-2013

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2 0 % 2 3 % 2 7 % 3 0 % 0% 5% 10% 15% 20% 25% 30% 35% Q1 Q2 Q3 Q4

Food I ngredients

Seasonality*

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* Average EBIT, 2010-2013

2 3 % 1 8 % 2 9 % 3 0 % 0% 5% 10% 15% 20% 25% 30% 35% Q1 Q2 Q3 Q4

Chocolate & Confectionery Fats

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Quarterly trends

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Volum es ’0 0 0 MT EBI T* SEK m illion EPS SEK

1,241 (1,196) 899 (799) 14.03 (12.39)

+ 1 5 % + 2 %

2 %

2 0 1 4 Q2

+ 1 9 % + 3 %

1 %

2 0 1 4 Q1

+ 1 1 % + 2 1 % + 6 % + 6 %

3 %

2 0 1 4 Q3

+ 1 0 % + 1 3 % + 1 3 % + 4 %

2 %

2 0 1 4 YTD

rganic volume growth

* Excluding acquisition costs and non-recurring items

2 0 1 4 YTD

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

10 percent change in all raw material prices will effect working capital by + / - SEK 250 million



Time lag of six to nine months

Raw material prices

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

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Cash flow

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SEK m illion Q3 2 0 1 4 YTD 2 0 1 4 Q3 2 0 1 3 YTD 2 0 1 3 Full year 2 0 1 3 EBITDA 442 1,185 390 1,049 1,460 Paid interest

29
90
27
80
96

Paid tax

100
239
55
209
261

Non-cash items 4

15

7

3
20

Change in working capital (WC)

369
644
12

335 217 Cash flow from operating activities incl. change in W C

5 2

1 9 7 3 0 3 1 ,0 9 2 1 ,3 0 0 Cash flow from investments

352
661
329
589
732

Free cash flow

4 0 4
4 6 4
2 6

5 0 3 5 6 8

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Cash flow

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SEK m illion Q3 2 0 1 4 Sept YTD 2 0 1 4 Q3 2 0 1 3 Sept YTD 2 0 1 3 Full year 2 0 1 3 EBITDA 442 1,185 390 1,049 1,460 Paid interest

29
90
27
80
96

Paid tax

100
239
55
209
261

Non-cash items 4

15

7

3
20

Change in working capital (WC)

369
644
12

335 217 Cash flow from operating activities incl. change in W C

5 2

1 9 7 3 0 3 1 ,0 9 2 1 ,3 0 0 Cash flow from investments

352
661
329
589
732

Free cash flow

4 0 4
4 6 4
2 6

5 0 3 5 6 8 SEK m illion Q3 2 0 1 4 YTD 2 0 1 4 Inventory

234
674

AR

256
337

AP 122 361 Other

1

6

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725 301 1,563 1,334 82% 33% 160% 119%

200%
160%
120%
80%
40%

0% 40% 80% 120% 160% 200% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2010 2011 2012 2013 Operating cash f low* Cash conversion rate

Cash conversion rate

10 Avg: 1 0 1 % * EBIT + change in working capital

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Cash conversion rate

11 Avg: 6 0 % * EBIT + change in working capital + regular CAPEX

394

48

1,193 797 45%

5%

122% 71%

200%
160%
120%
80%
40%

0% 40% 80% 120% 160% 200%

500

500 1,000 1,500 2,000 2010 2011 2012 2013 Operating cash f low* Cash conversion rate

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ROCE – September 30, 2014

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8% 10% 12% 14% 16% 18% Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14

Rolling 12 m onths Quarter

Quarter Q3 2 0 1 4 Q3 2 0 1 3 FY 2 0 1 3 EBIT (R12M) 1,231 1,060 1,117 Fixed assets 5,223 4,285 4,427 Working capital 3,406 2,481 2,581 ROCE 14.3 15.7 15.9

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Capital structure

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3 4 % 3 6 % 3 9 % 4 3 % 8 3 % 8 8 % 6 9 % 5 2 % 4 5 % 4 7 % 4 1 % 3 4 % 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2010 2011 2012 2013 Equity/ total assets (% ) Gearing, net debt/ equity (% ) Net debt/ total capital (% )

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Net debt / EBITDA

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0.00 0.50 1.00 1.50 2.00 2.50 3.00 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Net debt/ EBITDA Net debt, SEK m illion

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Debt maturity

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Lender/ Facility 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 Revolving credit facility with four banks (EUR 400 million) Multi-option facility Bank A (SEK 750 million) Multi-option facility Bank B (SEK 750 million) Mortgage loan Bank A (DKK 400 million)

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332 670 794 732 802 1,000 700 200 400 600 800 1,000 1,200 2010 2011 2012 2013 E2014 E2015* E2016* Total CAPEX 321 424 196 252 200 400 600 800 1,000 1,200 2010 2011 2012 2013 E2014 E2015* E2016* Acquisitions 332 349 370 536 550 1,000 700 200 400 600 800 1,000 1,200 2010 2011 2012 2013 E2014 E2015* E2016* CAPEX

Investing to grow (SEK million)

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* Including Brazil and China greenfields

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Volume growth from acquisitions and greenfields (’000 MT)

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Turkey Belgium Colom bia Brazil China 50 100 150 200 250 300 350 400 450 FY 2014 FY 2015 FY 2016 FY 2017 2015 2017 2016

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 AAK’s ambition is to grow and we have the

cash flow and funding to do it

 Strengthen growth

Organic growth

‒ Customer co-development ‒ Emerging markets

Selective acquisitions

 Capital efficiency

Working capital management

Key messages from the Group CFO

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