Slide 1: CFO update
Fredrik Nilsson, Chief Financial Officer CFO update The Co-Development Company
Slide 2: Good progress in most of the focus areas 2018
Good progress in most of the focus areas 2018 Organic volume Organic growth growth Higher than market Higher growth than underlying markets Operating profit Operating profit in line with management ambition but not Double-digit growth without challenges ROCE A balancing act Return on capital employe
Slide 3: Strong momentum of volume growth – organic and acquired
Strong momentum of volume growth – organic and acquired Volume growth 14 12 10 8 6 4 2 0 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Organic Aquired Rol 12 3 The Co-Development Company
Slide 4: Regional growth 2018 YTD
Regional growth 2018 YTD* 4% -2% 29% 15% 11% 20% *Volume (MT) 4 The Co-Development Company
Slide 5: Business areas
Business areas Food Ingredients Chocolate & Confectionery Fats Technical Products & Feed Bakery Chocolate Tefac Dairy Personal Care Feed Special Nutrition Food Service Industrial 0-2 percent growth 2-5 percent growth >5 percent growth 5 The Co-Development Company
Slide 6: Income statement, SEK million
Income statement, SEK million Q1-Q3 Q1-Q3 SEK million 2018 2017 Gaining market shares Volume 1,665 1,579 +5% Total operating income 20,712 19,921 +4% Raw materials and supplies -15,518 -15,207 +2% Other external expenses -1,831 -1,634 +12% FX 2%, inflation 3.5%, Cost for remuneration to employees -1
Slide 7: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) ROCE end Q3 2018* 15.7% Capital EBIT LTM employed* SEK million SEK million 1,911 12,167 Growth and operating leverage to drive increase in ROCE * ROCE: Return on Capital Employed calculated on rolling 12 months 7 The Co-Development Company
Slide 8: Balance sheet, SEK million
Balance sheet, SEK million 30.09. 31.12. SEK million 2018 2017 Total non-current assets 7,515 7,241 +4% Inventory 4,468 4,656 -4% Accounts receivables 3,701 3,21 +15% Current receivables 1,598 1,305 +22% Non-current Cash and cash equivalents 723 480 +51% assets Driven by investments in fixed assets
Slide 9: Consistent EPS growth drives consistent dividends
Consistent EPS growth drives consistent dividends Dividend policy states pay out ratio of 30-50% of net profit EPS DPS*** 1,80 1.63 1,60 1.46 1,40 1.29 10%* 1,20 1.13 1.00 1,00 0.88 0.79 0,80 0.75 0.71 0,60 0,40 0,20 0,00 2010 2011 2012 2013 2014 2015 2016 2017 2018 * CAGR *** Year paid out ** 2018
Slide 10: Cash flow, SEK million
Cash flow, SEK million Q1-Q3 Q1-Q3 18 vs SEK million 2018 2017 17 Cash flow before interest and tax 1,550 1,389 161 Interest paid and received -87 -99 12 Cash flow Increased EBITDA drives Tax paid -324 -385 61 before changes cash flow Cash flow before changes in working 1,139 905 234 in WC Changes i
Slide 11: CAPEX
CAPEX 1 600 1 400 Investments done enhancing growth areas 1 200 Debottleneck CAPEX 1 000 Capacity expansion in India Capacity expansions in Europe 800 SEK million 600 Balanced cash flow and CAPEX 400 Good maintenance CAPEX control Prudent strategic prioritization of 200 investments 0 2010 2011 2012
Slide 12: Debt Portfolio – Structure of loans and borrowings
Debt Portfolio – Structure of loans and borrowings Interest-bearing debt SEK 3,520 million as at September 2018 SEK 3,425 million of unused committed credit facilities as at September 2018 Average maturity of long-term loans is 4 years 2 000 1 800 Main financing sources 1 600 EUR 400 million club lo
Slide 13: Medium Term Note Program
Medium Term Note Program Decision made to establish a Swedish Medium Term Note (MTN) program. Aggregate outstanding principal amount of SEK 4,000,000,000 (or its equivalent in EUR). First tranche scheduled to be issue early December with an aggregate outstanding principal amount of SEK 1,000,000,000
Slide 14: Our long-term management ambition
Our long-term management ambition 350 +11% 300 310 250 +11% 200 203 Average 10% year-over-year EBIT 150 improvement* +6% 100 +15% 73 50 +1% 36 -2 0 Food Ingredients Chocolate & Technical Group Functions AAK Group Confectionery Products & Feed -50 Fats *Excluding acquisitions and at fixed FX 14 The C
Slide 15: AAK's performance – a history of success (CAGR)
AAK´s performance – a history of success (CAGR) Operating profit Volume* improvement* +7.5% +10.1% EPS Dividend improvement* increase* +10.4% +10.1% *CAGR for the period 2010-2018 rolling 12 months 15 The Co-Development Company
Slide 16: Thank you!
Thank you! www.aak.com The Co-Development Company