Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2021)
14 slides from Aak Ab's investor day presentation, Nov 23, 2021
Slide 1: Financial development
Financial development Tomas Bergendahl CFO Capital Market Day Malmö, November 23, 2021 The Co-Development Company Capital Market Day 2021
Slide 2: 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 3: Solid performance
Solid performance Despite continued volatility and uncertainty Growth and returns – Q3 2021 Growth and returns – YTD 2021 Volume Adjusted Volume Adjusted operating profit operating profit 583,000 MT SEK 642 million 1,702,000 MT SEK 1,734 million (+3%) (+7% y/y, +12% y/y*) (+5%) (+11% y/y, +20% y/y*)
Slide 4: Profit growth
Profit growth Driven by volume growth and portfolio optimization Adjusted operating profit YTD September 2021 SEK million +20% +11% • Volume contribution mainly from strong 1,900 1,863 growth in Chocolate & Confectionery Fats 40 1,800 125 20 129 • Portfolio optimization in Food Ingredients 1,734 and
Slide 5: Cost breakdown
Cost breakdown Cost YTD September 2021 2% 2% 5% 6% Raw materials 7% Wages Other production costs Logistics Energy Depreciation 78% The Co-Development Company Capital Market Day 2021
Slide 6: Inflationary environment
Inflationary environment Strong operational year-to-date performance despite higher cost Adjusted operating profit Adjusted operating profit per kilo +11% +6% +20%* +12%* Raw materials Packaging Logistics Energy * Fixed FX rates The Co-Development Company Capital Market Day 2021
Slide 7: Cash flow
Cash flow Impacted by increased raw material prices Cash flow YTD September 2021 WC Accounts payables AP CAPEX • Cash flow from working capital was 875 150 Other WC Acquisitions negative, driven by higher raw 2,206 material prices; affecting inventory -1,457 Inventory and receivables negatively and
Slide 8: Investing activities
Investing activities CAPEX and acquisitions Long-term CAPEX overview CAPEX key priorities SEK million • Safety – always a priority 1,500 1,421 1,335 • Sustainability 1,200 1,117 1,150 • Water usage • Energy efficiency 900 810 723 • Carbon footprint 650 600 • Maintenance • Efficiency measures to driv
Slide 9: Long history of increasing profitability
Long history of increasing profitability Our strong focus on value-adding solutions creates financial value Adjusted EBIT per kilo above SEK 1.00 Adjusted EBIT Volume (SEK million) (´000 MT) 2,400 2,400 2,200 2,200 2,000 2,000 1,800 1,800 1,600 1,600 1,400 1,400 1,200 1,200 1,000 Operating profit 1,
Slide 10: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) Strong recovery following solid operational execution % ROCE end Q3 2021* 17.0 16.5 15.5% 16.0 15.9 15.5 15.5 EBIT LTM Capital 15.0 employed* 14.5 SEK 2,341 SEK 15,087 14.0 million** million 13.5 13.0 *Return on Capital Employed calculated on rolling 12 months Q3 18
Slide 11: Low net debt/EBITDA ratio
Low net debt/EBITDA ratio Solid platform for continued growth Net debt/EBITDA ratio 2.00 1.80 1.60 1.40 1.26 1.20 1.00 1.12 0.80 0.60 0.40 0.20 0.00 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Net debt/EBITDA Net debt/EBITDA incl. IFRS 16 The Co-Development Company
Slide 12: Consistently increasing dividend following strong EPS growth
Consistently increasing dividend following strong EPS growth Dividend policy to pay out 30–50 percent of net profit Earnings per share (EPS) Dividend per share SEK +10% SEK 7.00 6.55 2.40 2.30 6.50 6.16 +12% 6.00 5.86 2.20 2.10 5.50 +10% 5.21 2.00 1.85 5.43* 5.00 4.71 1.80 1.63 4.50 1.60 1.46 3.95 4
Slide 13: AAK – focus maintained, geared to deliver
AAK – focus maintained, geared to deliver Strong Targeting underlying above GROWTH MARKET DRIVERS growth Average Strong BALANCE 10% year-over-year SHEET supporting EBIT further growth improvement The Co-Development Company Capital Market Day 2021
Slide 14: Thank you
Thank you The Co-Development Company Capital Market Day 2021