Slide 1: Financial update
Fredrik Nilsson CFO Financial update
Slide 2: A strong financial foundation
A strong financial foundation Volumes ('000 MT) EBIT (SEK million) 1,700 1,200 1,600 1,100 1,620 1,117 1,500 1,000 1,511 996 1,400 1,441 900 1,426 911 1,300 800 824 1,200 700 1,100 600 1,000 500 900 400 2010 2011 2012 2013 2010 2011 2012 2013 ROCE (R12M) 17% 16% 16% 15% 14% 14% 13% 13% 13% 12% 11% 1
Slide 3: EPS and DPS evolution
EPS and DPS evolution 20.0 +14% +6% 17.9 15.0 15.7 14.7 10.0 +11% +14% 5.0 6.00 4.75 5.25 0.0 2011 2012 2013 EPS (SEK) DPS (SEK) 3
Slide 4: Seasonality*
Seasonality* AAK Group 35% 30% 25% 28% 29% 20% 22% 21% 15% 10% 5% 0% Q1 Q2 Q3 Q4 * Average EBIT, 2010-2013 4
Slide 5: Seasonality*
Seasonality* Food Ingredients 35% 30% 25% 30% 27% 20% 23% 15% 20% 10% 5% 0% Q1 Q2 Q3 Q4 Chocolate & Confectionery Fats 35% 30% 25% 29% 30% 20% 23% 15% 18% 10% 5% 0% Q1 Q2 Q3 Q4 * Average EBIT, 2010-2013 5
Slide 6: Quarterly trends
Quarterly trends 2014 2014 2014 2014 2014 YTD YTD Q3 Q2 Q1 Volumes +4% +6% +2% +3% ’000 MT 1,241 (1,196) -2% -3% -2% -1% organic volume growth EBIT* SEK 899 (799) +13% +6% +15% +19% million EPS SEK 14.03 (12.39) +13% +10% +11% +21% * Excluding acquisition costs and non-recurring items 6
Slide 7: Raw material prices
Raw material prices 1,800 Rapeseed oil Palm oil 1,600 1,400 1,200 1,000 USD/ton 800 600 400 200 0 10 percent change in all raw material prices will effect working capital by +/- SEK 250 million Time lag of six to nine months 7
Slide 8: Cash flow
Cash flow Full Q3 YTD Q3 YTD SEK million year 2014 2014 2013 2013 2013 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 -52 197 303 1,092 1,3
Slide 9: Cash flow
Cash flow Q3 YTD SEK million Sept Sept Q3 Q3 2014 2014Full SEK million YTD YTD year 2014 2013 Inventory 2014 -234 2013 -674 2013 EBITDA AR 442 1,185 390 -256 1,049 -337 1,460 Paid interest AP-29 -90 -27 122 -80 361 -96 Paid tax Other -100 -239 -55 -1-209 6-261 Non-cash items 4 -15 7 -3 -20 Change in
Slide 10: Cash conversion rate
Cash conversion rate 2,000 160% 200% 1,800 119% 160% 1,600 82% 120% Avg: 101% 1,400 1,563 80% 33% 1,200 1,334 40% 1,000 0% 800 -40% 600 725 -80% 400 -120% 200 301 -160% 0 -200% 2010 2011 2012 2013 Operating cash f low* Cash conversion rate * EBIT + change in working capital 10
Slide 11: Cash conversion rate
Cash conversion rate 2,000 200% 122% 160% 1,500 120% 71% 45% 80% Avg: 60% 1,000 1,193 40% -5% 0% 797 500 -40% 394 -80% 0 -120% -48 -160% -500 -200% 2010 2011 2012 2013 Operating cash f low* Cash conversion rate * EBIT + change in working capital + regular CAPEX 11
Slide 12: ROCE – September 30, 2014
ROCE – September 30, 2014 Quarter Q3 2014 Q3 2013 FY 2013 EBIT (R12M) 1,231 1,060 1,117 Fixed assets 5,223 4,285 4,427 18% Working capital 3,406 2,481 2,581 ROCE 14.3 15.7 15.9 16% 14% 12% 10% 8% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 Ro
Slide 13: Capital structure
Capital structure 100% 45% 47% 50% 90% 41% 45% 80% 88% 40% 83% 34% 70% 35% 60% 69% 30% 50% 25% 52% 40% 20% 43% 30% 36% 39% 15% 34% 20% 10% 10% 5% 0% 0% 2010 2011 2012 2013 Equity/total assets (%) Gearing, net debt/equity (%) Net debt/total capital (%) 13
Slide 14: Net debt/EBITDA
Net debt / EBITDA 4,000 3.00 3,500 2.50 3,000 Net debt, SEK million Net debt/EBITDA 2.00 2,500 2,000 1.50 1,500 1.00 1,000 0.50 500 0 0.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14
Slide 15: Debt maturity
Debt maturity Lender/Facility 2014 2015 2016 2017 2018 2019 2020 2021 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) 15
Slide 16: Investing to grow (SEK million)
Investing to grow (SEK million) 1,200 1,200 1,000 1,000 1,000 800 800 600 700 600 536 550 400 400 424 332 349 370 200 200 321 252 196 0 0 2010 2011 2012 2013 E2014 E2015* E2016* 0 2010 2011 2012 2013 E2014 0 E2015* 0 E2016* CAPEX Acquisitions 1,200 1,000 1,000 800 794 802 732 700 600 670 400 332 200
Slide 17: Volume growth from acquisitions and greenfields ('000 MT)
Volume growth from acquisitions and greenfields (’000 MT) 450 400 350 300 China 250 Brazil 200 Colombia 150 100 Belgium 50 Turkey 0 FY 2014 2015 FY 2015 2016 FY 2016 2017 FY 2017 17
Slide 18: Key messages from the Group CFO
Key messages from the Group CFO 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 18