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

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 MT Sales + 4% + 1 % 16,911 (16,695) SEK Million EBIT* + 9 % 1,003 (918) SEK Million EBIT/kg* + 3 % 0.66 (0.64) SEK EPS 15.66 (14.72) + 6 % SEK Net debt 2,635 (3,141) - 16 % SEK million * Adjusted for Hurricane Sandy and acquisition related costs The first choice for value-added vegetable oil solutions 3

Key events 2012 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 The first choice for value-added vegetable oil solutions 4

AAK Acceleration AAK Acceleration projects KPI ´ s Bakery Dairy Chocolate & Confectionery Fats Infant Nutrition Food Service Acquisitions N.A. Emerging markets Purchasing Productivity Sales Employees Internal Communications Behind plan Ahead of On plan Slightly ahead plan of plan The first choice for value-added vegetable oil solutions 5

Focus on growing markets – edible oils volume 100% 13% 20% 90% 22% 80% 18% 18% 60% 70% 31% 60% 50% 40% 69% 62% 30% 47% 40% 20% 10% 0% 2006 2009 2012 2015-2016* Slow growing markets Medium growing markets Fast growing markets  USA  Nordics  Asia  West Europe  CEE  Latin America  CIS * Management ambition The first choice for value-added vegetable oil solutions 6

Product development Akocream LS 45 • Creamier taste experience in bakery fillings CEBES TM LS 75 • Lower content of saturated fats ILLEXAO TM BR 62 • Improved bloom retarding CHOCOFILL TM LT 05 • Low in trans fat AKOSPREAD TM HS 99 • Stabilization to prevent oil separation The first choice for value-added vegetable oil solutions 7

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 offerings in the United States The first choice for value-added vegetable oil solutions 8

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 9 The first choice for value-added vegetable oil solutions

CSR - Achievements  We triple our activities with women groups in Burkina Faso, in order to • Secure improved supply and quality of 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 The first choice for value-added vegetable oil solutions 10

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 operating profit by SEK 21 million The first choice for value-added vegetable oil solutions 11

Changes in Management Peter Korsholm Anne Mette Olesen Terrence Thomas Chief Financial Officer Chief Marketing Officer Vice President AAK USA The first choice for value-added vegetable oil solutions 12

Other external factors  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 The first choice for value-added vegetable oil solutions 13

Q1 2013 Volume + 6 % 388 (366) ´000 MT Sales - 5 % 4,011 (4,222) SEK Million EBIT 242 (220) + 10 % SEK Million EBIT/kg 0.62 (0.60) + 3 % SEK EPS 3.78 (3.43) + 10 % SEK Net debt 2,517 (Dec 12: 2,635) - 5 % SEK million The first choice for value-added vegetable oil solutions 14

Food Ingredients Operating profit * Food Ingredients -Operating profit 250 800 700 200 Rolling 12 months, SEK million 600 Quarter, SEK million 500 150 400 100 300 200 50 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 Quarter Rolling 12 months *Adjusted for the effects of Hurricane Sandy The first choice for value-added vegetable oil solutions 15

Chocolate & Confectionery Fats Operating profit * Chocolate & Confectionery Fats - Operating profit 160 600 140 500 Rolling 12 months, SEK million 120 Quarter, SEK million 400 100 80 300 60 200 40 100 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 Quarter Rolling 12 months *Adjusted for the effects of Hurricane Sandy The first choice for value-added vegetable oil solutions 16

Price development – cocoa butter 10 000 9 000 8 000 7 000 6 000 USD/ton 5 000 4 000 3 000 2 000 1 000 0 The first choice for value-added vegetable oil solutions 17

Technical Products & Feed Technical Products & Feed - Operating profit Operating profit 50 150 45 130 Rolling 12 months, SEK million 40 110 35 Quarter, SEK million 90 30 25 70 20 50 15 30 10 10 5 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 Quarter Rolling 12 months The first choice for value-added vegetable oil solutions 18

Priorities for 2013 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 The first choice for value-added vegetable oil solutions 19

AAK Acceleration - Management Growth ambition* Acquisitions Organic Growth Productivity Operating profit 2010 400 400 Actual 800 11 % 800 Actual incl acquisitions 14 % 2010 In appr. 4-6 years * As expressed at the Capital Market Day November 10, 2010 and at fixed 20 The first choice for value-added vegetable oil solutions exchange rates.

Concluding remarks from CEO 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 The first choice for value-added vegetable oil solutions 21

Thank you for your support and commitment 22