Slide 1: Interim Report Second quarter 2023
Interim Report Second quarter 2023 Johan Westman, CEO Tomas Bergendahl, CFO The Co-Development Company 1
Slide 2: Agenda
Agenda 1) Highlights Q2 2) Selected key events 3) Business & financial update 4) Concluding remarks 5) Q&A 2
Slide 3: Forward-looking statements
Forward-looking statements 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 i
Slide 4: Continued strong performance driven by margin expansion
Continued strong performance driven by margin expansion Highlights Q2 2023 Growth and returns Q2 2023 • Operating profit, excl. IAC, increased 36 percent at fixed foreign exchange rates. Volume Operating profit • Operating profit per kilo, excl. IAC, increased 49 percent at fixed FX rates, with all
Slide 5: Selected key events
Selected key events Investing for the future of foods Engagement for a more sustainable supply of palm • AAK is committed to investing in the advancement of alternative • Palm oil plays a significant role in feeding the world and providing ingredients, recognizing their importance in the evolving fo
Slide 6: Food Ingredients
Food Ingredients SEK million Operating profit SEK million Operating profit Revenue Operating profit 650 636 2,200 Volume per kilo SEK million SEK million 600 2,000 SEK 550 1,800 500 1,600 -8% +57% +67% 450 406 1,400 -6% 400 1,200 357 8,119 636 1.90 350 334 7,504 1,000 300 800 250 600 406 1.14 200 40
Slide 7: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats SEK million Operating profit SEK million Operating profit Revenue Operating profit 350 1,400 Volume per kilo SEK million SEK million SEK 300 275 1,200 250 1,000 -15% -14% +27% +50% 216 200 800 126 3,677 275 2.57 150 600 107 3,170 216 400 1.71 50 200 0 0 Q2 Q3 Q4 Q1 Q2
Slide 8: Technical Products & Feed
Technical Products & Feed Operating profit Operating profit SEK million SEK million Revenue Operating profit Volume per kilo 140 350 SEK million SEK million SEK 120 300 100 -28% -4% +6% 250 -10% 80 71 767 46 44 0.69 200 64 0.65 60 46 44 150 555 40 20 100 0 50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 9: Strong cash flow on the back of increased earnings and reduced working capital
Strong cash flow on the back of increased earnings and reduced working capital Cash flow Q2 2023 Comments (-382) • Working capital was positively affected by lower raw material prices. This had a 362 positive effect on inventory and accounts receivables. 1.064 (-206) 246 (-200) • The positive cash f
Slide 10: Return on Capital Employed (ROCE) increase on strong operating profit and lower working capital
Return on Capital Employed (ROCE) increase on strong operating profit and lower working capital due to raw material prices % 17,0 ROCE end Q2 2023* 16,0 15,9 15.9% 15,0 EBIT LTM Capital 14,0 employed* SEK 3,432 SEK 21,575 13,0 million million 1,0 0,0 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q
Slide 11: Net debt/EBITDA decline on strong profit growth and lower raw material prices
Net debt/EBITDA decline on strong profit growth and lower raw material prices Net debt/EBITDA 3.00 2.50 2.00 1.50 1.00 1.01 0.50 0.00 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 The Co-Development Company 11 11
Slide 12: Concluding remarks
Concluding remarks • Continued strong performance, driven by margin expansion. • Strong operating profit growth driven by higher sales of speciality solutions, productivity improvements and price management. • Volumes declined, mainly due to the optimization program in Bakery, the controlled exit fr
Slide 13: Q&A
Q&A 13
Slide 14: Financial calendar
Financial calendar Financial calendar 2023 October 25, 2023 Interim report 9M, 2023 February 7, 2024 Interim report 12M, 2023 The Co-Development Company 14 14
Slide 15: Making Better Happen
Everything we do is about Making Better Happen™