Slide 1: Interim Report Third quarter 2023
Interim Report Third quarter 2023 Johan Westman, CEO Tomas Bergendahl, CFO The Co-Development Company 1
Slide 2: Agenda
Agenda 1) Highlights Q3 2) Selected 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: Strong profit growth, including a sequential volume improvement
Strong profit growth, including a sequential volume improvement Highlights Q3 2023 Growth and returns Q3 2023 • Operating profit increased 35 percent at fixed foreign exchange rates. • Operating profit per kilo increased 43 percent at fixed FX rates, driven Volume Operating profit by higher sales of
Slide 5: Selected events
Selected events Joining forces for Better Health New Chairman of AAK’s Board of Directors • A joint R&D project between AAK and Maastricht University, aiming to • Patrik Andersson has been appointed Chairman of AAK’s Board of mitigate type 2 diabetes and related health conditions such as obesity, Di
Slide 6: Food Ingredients
Food Ingredients SEK million Operating profit SEK million Operating profit Revenue Operating profit 800 2,500 Volume per kilo 739 SEK million SEK million SEK 700 2,000 600 -3% -10% +55% +59% 500 476 1,500 353 343 8,538 739 2.15 400 7,713 1,000 300 476 1.35 200 500 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 7: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats SEK million Operating profit SEK million Operating profit Revenue Operating profit 500 1,400 Volume per kilo SEK million SEK million 438 SEK 400 1,200 1,000 +41% +58% 310 -11% -17% 300 800 133 4,057 438 3.68 119 200 600 3,357 310 400 2.33 100 200 0 0 Q3 Q4 Q1 Q2 Q3 Q4
Slide 8: Technical Products & Feed
Technical Products & Feed Operating profit Operating profit SEK million SEK million Revenue Operating profit Volume per kilo 150 350 SEK million SEK million SEK 300 -8% -23% -38% -33% 100 250 76 73 711 76 1.04 200 67 549 50 47 150 0.70 47 100 0 50 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1
Slide 9: Strong cash flow driven by earnings and a stable working capital development
Strong cash flow driven by earnings and a stable working capital development Cash flow Q3 2023 Comments • Cash flow from inventory was positively (1.021) (-985) affected by lower inventory levels as 1.392 well as inventory composition. 25 (-40) 239 (38) 1.214 • Cash flow from receivables was negativ
Slide 10: Return on Capital Employed increase on strong operating profit
Return on Capital Employed increase on strong operating profit % 18,0 ROCE end Q3 2023* 17,0 17,2 17.2% 16,0 15,0 EBIT LTM Capital 14,0 employed* SEK 3,753 SEK 21,870 13,0 million million 1,0 0,0 Q2 22 Q3 22 Q4 22 Q2 23 Q3 23 Q1 22 Q1 23 Q3 20 Q4 20 Q2 21 Q3 21 Q4 21 Q1 21 * ROCE: Return on Capital
Slide 11: Net debt/EBITDA reduction on strong profit growth and reduced net debt
Net debt/EBITDA reduction on strong profit growth and reduced net debt Net debt/EBITDA 3.00 2.50 2.00 1.50 1.00 0.50 0.73 0.00 Q4 20 Q3 23 Q1 23 Q2 23 Q4 21 Q3 20 Q1 21 Q4 22 Q2 21 Q3 21 Q1 22 Q2 22 Q3 22 The Co-Development Company 11 11
Slide 12: Concluding remarks
Concluding remarks • Strong profit growth, including a sequential volume improvement. • Volumes declined year-over-year but improved compared to the second quarter. • The strong profit growth was driven by improved profitability, which, in turn, was a result of higher sales of speciality solutions,
Slide 13: Q&A
Q&A 13
Slide 14: Financial calendar
Financial calendar Financial calendar October 25, 2023 Interim report 9M, 2023 February 7, 2024 Interim report 12M, 2023 April 25, 2024 Interim report 3M, 2024 May 8, 2024 Annual General Meeting, Malmö, Sweden July 18, 2024 Interim report 6M, 2024 October 24, 2025 Interim report 9M, 2024 February 5,
Slide 15: Making Better Happen
Everything we do is about Making Better Happen™