May 3, 2013 Agenda Result for 2012 AAK Acceleration Key events - - PowerPoint PPT Presentation

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May 3, 2013 Agenda Result for 2012 AAK Acceleration Key events - - PowerPoint PPT Presentation

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Arne Frank CEO Annual General Meeting May 3, 2013 Agenda Result for 2012 AAK Acceleration Key events Result first quarter 2013 The first choice for value-added vegetable oil solutions 2 Full year 2012 Volume* + 6 % 1,511 (1,426) 000

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SLIDE 1

Arne Frank CEO

Annual General Meeting May 3, 2013

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SLIDE 2

Result for 2012 AAK Acceleration Key events Result first quarter 2013

Agenda

The first choice for value-added vegetable oil solutions 2

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SLIDE 3

Full year 2012

Volume*

´000 MT

Sales

SEK Million

EBIT*

SEK Million

EBIT/kg*

SEK

EPS

SEK

Net debt

SEK million

+ 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 Hurricane Sandy and acquisition related costs

  • 16 %

2,635 (3,141)

The first choice for value-added vegetable oil solutions

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SLIDE 4

Key events 2012

The first choice for value-added vegetable oil solutions

AAK Acceleration Product development Acquisition of

  • Oasis Foods Company
  • Crown-Foods A/S

CSR achievements

  • Burkina Faso
  • Winner of the E-Prize

Hurricane Sandy Changes in management Other external factors

  • Danish fat tax
  • EU Biofuel proposal

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SLIDE 5

AAK Acceleration

AAK Acceleration projects KPI´s

Bakery Dairy Chocolate & Confectionery Fats Infant Nutrition Food Service Acquisitions Emerging markets

The first choice for value-added vegetable oil solutions

Purchasing Productivity Sales Employees Internal Communications

Behind plan Ahead of plan Slightly ahead

  • f plan

On plan

N.A.

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SLIDE 6

The first choice for value-added vegetable oil solutions

Focus on growing markets – edible oils volume

 Nordics  West Europe  USA  CEE  CIS  Asia  Latin America * Management ambition

69% 62% 47% 40% 18% 18% 31% 13% 20% 22% 60%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2009 2012 2015-2016* Slow growing markets Medium growing markets Fast growing markets 6

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SLIDE 7

The first choice for value-added vegetable oil solutions

Product development

Akocream LS 45

  • Creamier taste experience in bakery fillings

CEBESTM LS 75

  • Lower content of saturated fats

ILLEXAOTM BR 62

  • Improved bloom retarding

CHOCOFILLTM LT 05

  • Low in trans fat

AKOSPREADTM HS 99

  • Stabilization to prevent oil separation

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SLIDE 8

The first choice for value-added vegetable oil solutions

Acquisition of Oasis Foods Company – May 25, 2012

Oasis Foods

  • Strong position in Food Service
  • Revenues of SEK 925 million and

160 employees

  • Located in Hillside, New Jersey

Food Service

  • Edible oils
  • Margarine
  • Spreads
  • Shortenings
  • Mayonnaise
  • Sauces and dressings

Strategic rationale

  • Excellent platform for our Food Service

strategy

  • Significantly broadens our product
  • fferings in the United States

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SLIDE 9

Acquisition of Crown-Foods A/S in Denmark – May 31, 2012

Crown-Foods A/S

  • Scandinavian market leader producing

sauces and dressings for Food Service customers

  • Revenues of SEK 60 million and 20

employees

  • Located in Mørkøv, Denmark

Strategic rationale

  • Strengthen our ability to supply a

broader portfolio of Food Service products in Scandinavia

The first choice for value-added vegetable oil solutions 9

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SLIDE 10

CSR - Achievements

The first choice for value-added vegetable oil solutions

 We triple our activities with women groups in Burkina Faso, in order to

  • Secure improved supply and quality
  • f the shea kernels
  • Improve living conditions in the villages

 With L’Oréal we signed an agreement to develop the sustainable trade of shea kernels  Awarded the E-Prize by Veckans Affärer and the energy provider E.ON

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Hurricane Sandy (USA)

The Oasis Foods plant was back in production (full capacity) 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 nearly full capacity Fourth quarter was negatively impacted on

  • perating profit by SEK 21 million

The first choice for value-added vegetable oil solutions 11

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SLIDE 12

Changes in Management

The first choice for value-added vegetable oil solutions

Peter Korsholm Chief Financial Officer Anne Mette Olesen Chief Marketing Officer Terrence Thomas Vice President AAK USA

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SLIDE 13

The first choice for value-added vegetable oil solutions

 Danish fat tax cancelled  Focus on saturated fat remains  EU, Biofuel Proposal  We believe this will lead to significant decreases in “food based” biodiesel volumes, potentially leading to several large changes for the European vegetable Oils & Fats industries

Other external factors

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Q1 2013

Volume

´000 MT

Sales

SEK Million

EBIT

SEK Million

EBIT/kg

SEK

EPS

SEK

Net debt

SEK million

+ 10 % + 3 %

  • 5 %

+ 6 % + 10 %

388 (366) 242 (220) 4,011 (4,222) 3.78 (3.43) 0.62 (0.60)

  • 5 %

2,517 (Dec 12: 2,635)

The first choice for value-added vegetable oil solutions 14

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SLIDE 15

Food Ingredients

100 200 300 400 500 600 700 800 50 100 150 200 250 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 Q1 13

Rolling 12 months, SEK million Quarter, SEK million

Food Ingredients -Operating profit

Quarter Rolling 12 months The first choice for value-added vegetable oil solutions

Operating profit*

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*Adjusted for the effects of Hurricane Sandy

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Chocolate & Confectionery Fats

100 200 300 400 500 600 20 40 60 80 100 120 140 160 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 Q1 13

Rolling 12 months, SEK million Quarter, SEK million

Chocolate & Confectionery Fats - Operating profit

Quarter Rolling 12 months

*Adjusted for the effects of Hurricane Sandy

The first choice for value-added vegetable oil solutions

Operating profit*

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The first choice for value-added vegetable oil solutions

Price development – cocoa butter

1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000

USD/ton

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Technical Products & Feed

  • 10

10 30 50 70 90 110 130 150 5 10 15 20 25 30 35 40 45 50 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 Q1 13

Rolling 12 months, SEK million Quarter, SEK million

Technical Products & Feed - Operating profit

Quarter Rolling 12 months

The first choice for value-added vegetable oil solutions

Operating profit

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Priorities for 2013

The first choice for value-added vegetable oil solutions

Growth

  • Customer co-development
  • Emerging markets
  • Selective acquisitions

Continued improved operating profit per kilo

  • Speciality and semi-speciality vs. Commodity products
  • Efficiency

Improved capital efficiency

  • Working capital management
  • Manage CAPEX

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AAK Acceleration - Management Growth ambition*

800 800 400 400

Acquisitions Organic Growth Productivity Operating profit 2010

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

2010 In appr. 4-6 years

Actual 11 % Actual incl acquisitions 14 %

The first choice for value-added vegetable oil solutions 20

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AAK’s value propositions:

  • Healthy products
  • Reduced costs
  • Customer product co-development and solutions

approach

  • The AAK Acceleration program allows us to remain

prudently optimistic for the future

We continue to remain prudently optimistic for the

  • future. The two main drivers for our optimism are:
  • Strong Food Ingredients business
  • The expected recovery in our Chocolate &

Confectionary Fats business will occur during the second half of 2013

Concluding remarks from CEO

The first choice for value-added vegetable oil solutions 21

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Thank you for your support and commitment

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