Slide 1: Interim report Q4 2007 & Year End report Q1-4 2007
Interim report, Q 4 2007 & Year End report, Q 1-4 2007 Jerker Hartwall Anders Byström President and CEO Vice President and CFO 1 CEO, Interim report Year End 2008-02- 21
Slide 2: Year End 2007
Year End 2007 • Net sales +19 %, SEK 13,005 million (10,929). • Operating profit +44 %, SEK 653 million (455). • The company has filed an insurance claim of SEK 47 million for December related to the impact of the Danish incident. This amount has not yet been recognized as income. • Proposed dividen
Slide 3: 4th quarter 2007
4rd quarter 2007 • Net sales +21 %, SEK 3,709 million (3,057). Operating profit +65 %, SEK 178 million (108). The company has filed an insurance claim of SEK 47 million for December related to the impact of the Danish incident. This amount has not yet been recognized as income. 3 CEO, Interim report
Slide 4: Cash flow - full year
Cash flow - full year • Substantial raw material prices increase (80-100%) • Good access to shea, high inventory • Strategic investments, new CBE-plant and acquisitions 4 CEO, Interim report Year End 2008-02-21
Slide 5: Year End 2007
Year End 2007 The Company was expecting a clear improvement in operating profit, primarily due to CBE growth and cost synergies. This is fulfilled. SEK 455 million SEK 653 million (adjusted 700) Operating result has improved in all business areas. Cocoa Butter equivalents (CBE) have strongly affecte
Slide 6: Operating profit, SEK M, Quarter
Operating profit 200 180 178 160 162 161 140 152 SEK M, Quarter 120 127 119 100 108 101 80 60 40 20 0 Q1 06 Q1 07 Q2 06 Q2 07 Q3 06 Q3 07 Q4 06 Q4 07 6 CEO, Interim report Year End 2008-02-21
Slide 7: Operating profit
Operating profit 225 47 Due to insurance claim. 7 CEO, Interim report Year End 2008-02-21
Slide 8: Operating profit rolling 12 months
Operating profit rolling 12 months, excluding IAS 39 and non-recurring items. 700 653 600 583 500 470 455 498 549 549 583 498 SEK million 470 455 400 300 200 100 0 2005 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 8 CEO, Interim report Year End 2008-02-21
Slide 9: Operating profit 2007 by Business Area
Operating profit 2007 by Business Area •Q4 • Q 1-4 120 400 106 356 100 89 350 81 300 278 268 80 250 60 2007 200 164 2007 2006 2006 40 150 27 100 65 53 20 12 15 50 0 0 CCF/LfC FI TPF CCF/LfC FI TPF 9 CEO, Interim report Year End 2008-02-21
Slide 10: Business Areas – Gross Contribution
Business Areas – Gross Contribution Chocolate & Food Ingredients Technical Products & Confectionery Fats Feed Q4, +47% Q4, +14 % Q4, +11 % 3.57 to 5.24 SEK/kg 1.84 to 2.10 SEK/kg 0.70 to 0.78 SEK/kg Full year, +26% Full year, +7 % Full year, +1 % 3.51 to 4.42 SEK/kg 1.65 to 1.76 SEK/kg 0.78 to 0.79
Slide 11: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats (including Lipids for Care) Q4 Q4 Q 1-4 Q 1-4 SEK million 2007 2006 2007 2006 Net sales 1,130 912 3,914 3,351 Gross contribution 376 261 1,270 1,019 Gross contribution per kilo 5.24 3.57 4.42 3.51 Operating profit excl. non-recurring items 106 27 356 164 +79 +192 or 11
Slide 12: Chocolate & Confectionery Fats - EBIT per tonne
Chocolate & Confectionery Fats - EBIT per tonne, SEK, rolling 12 months 1400 1 236 1200 980 1000 800 800 660 560 600 EBIT 400 200 0 2006 Q1 Q2 Q3 Q4 2007 2007 2007 2007 12 CEO, Interim report Year End 2008-02-21
Slide 13: Shea situation
Shea situation • The demand for CBE is high. • We haven't got the quantities we want 2007. • We continuously increase our presence in the logistic chain. • For the next coming years a limited supply of shea might form a restriction on AAKs expansion in this segment. 13 CEO, Interim report Year End 2
Slide 14: Shea situation
Shea situation • The demand for CBE is high. • We haven't got the quantities we want 2007. • We continuously increase our presence in the logistic chain. • For the next coming years a limited supply of shea might form a restriction on AAKs expansion in this segment. • For 2008 we have good access to
Slide 15: Shea areas in West-Africa
Shea areas in West-Africa Mali Burkina Faso Benin Nigeria Ivory Coast Togo Ghana 15 CEO, Interim report Year End 2008-02-21
Slide 16: AAKs logistic chain of shea from tree to factory
AAKs logistic chain of shea from tree to factory Shea tree The inhabitants Village work Market place AAK AAK 16 CEO, Interim report Year End 2008-02-21
Slide 17: AAKs logistic chain of shea from tree to factory
AAKs logistic chain of shea from tree to factory Shea tree The inhabitants Village work AAK AAK AAK AAK AAK AAK AAK AAK AAK Market place AAK AAK AAK AAK AAK AAK AAK AAK AAK AAK AAK 17 CEO, Interim report Year End 2008-02-21
Slide 18: Cocoa butter price development in SEK/tonnes
Cocoa butter price development in SEK/tonnes Cocoa Butter 45000 40000 35000 30000 SEK/tonnes 25000 20000 15000 10000 5000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 18 CEO, Interim report Year End 2008-02-21
Slide 19: AAK has created the world's largest CBE center
AAK has created the world´s largest CBE center 19 CEO, Interim report Year End 2008-02-21
Slide 20: Place of explosion
Place of explosion SF3 • The new CBE factory was not damaged New factory • The raw materials of shea were unaffected • The process for restoring of buildings and infrastructure has started 20 CEO, Interim report Year End 2008-02-21
Slide 21: Food Ingredients
Food Ingredients Q4 Q4 Q 1-4 Q 1-4 SEK million 2007 2006 2007 2006 Net sales 2,122 1,775 7,500 6,177 Gross contribution 482 431 1,585 1,461 Gross contribution per kilo 2.10 1.84 1.76 1.65 Operating profit excl. non-recurring items 81 89 279 268 -8 +11 or 4 % Volumes (thousand tonnes) 230 234 898 884
Slide 22: Food Ingredients - EBIT per tonne
Food Ingredients - EBIT per tonnes, SEK, rolling 12 months 350 312 317 311 303 308 300 250 200 150 EBIT 100 50 0 2006 Q1 Q2 Q3 Q4 2007 2007 2007 2007 22 CEO, Interim report Year End 2008-02-21
Slide 23: External circumstances and driving forces for Food Ingredients
External circumstances and driving forces for Food Ingredients • The greatest external change for AAK is the accelerating consumption of vegetable oils in the energy sector. • This has driven up the raw material prices of the Group, and the trend will probably continue. 23 CEO, Interim report Year E
Slide 24: Technical Products & Feed
Technical Products & Feed Q4 Q4 Q 1- 4 Q 1-4 SEK million 2007 2006 2007 2006 Net sales 392 296 1,307 1,057 Gross contribution 59 52 233 202 Gross contribution per kilo 0.78 0.70 0.79 0.78 Operating profit excl. non-recurring items 12 15 65 53 -3 +12 or 4 % Volumes (thousand tonnes) 76 74 295 261 Q4
Slide 25: Condensed balance sheet
Condensed balance sheet +939 +667 +221 Equity/Total assets 28 % 33 % 25 CEO, Interim report Year End 2008-02-21
Slide 26: Summary cash flow statement for the Group
Summary cash flow statement for the Group • Q 4 2007 • Increased working capital – mainly due to increased inventory and receivables, following increased raw material prices and higher volume of shea. • Investments: New CBE plant, acquisitions 26 CEO, Interim report Year End 2008-02-21
Slide 27: Inventory and current receivable development
Inventory and current receivable development Inventory and current receivable development • CBE related 2 500 inventory 2 000 • Raw material price increases 1 500 1 000 Inventory 500 Current receivables 0 Q3 Q4 Q1 Q2 Q3 Q4 2006 2006 2007 2007 2007 2007 27 CEO, Interim report Year End 2008-02-21
Slide 28: Year end 2007
Year end 2007 EBIT development according to plan. AAK Strong CBE-development. Synergies according to plan. Food Ingredients although stable in a tough competition. Technical Products & Feed can see effects of rationalisation program. Additional rationalisation of approx. SEK 100 million. Full implem
Slide 29: Cocoa Butter Equivalent (CBE) - Plant capacity
Cocoa Butter Equivalent (CBE) - Plant capacity • Existing plant in Sweden • New plant in Aarhus starting Q1, 2008 • Old plant in Aarhus restart second half 2008 29 CEO, Interim report Year End 2008-02-21
Slide 30: Result communication 2008
Result communication 2008 • The company will, separately report claims filed related to the incident in Aarhus. • The company is conducting discussions with its insurers regarding compensation for property damage and disruption of operations. • The insurance compensation will be recognized as revenu
Slide 31: Future prospects
Future prospects • The specialisation strategy will be further developed. • Cocoa Butter Equivalents (CBE) will continue to be a growth-engine after the start-up of the new factory and restoration of the old factory. • Acquisitions and organic growth will progressively improve margins in Food Ingred
Slide 32: Building blocks - EBIT development
Building blocks - EBIT development CBE margins CBE CBE margins Volumes CBE margins CBE CBE Volumes margins CBE CBE Volumes FI volumes Speciality FI Speciality FI FI Speciality Speciality Synergies Synergies Synergies 1st wave Synergies FI FI FI FI Commodity Commodity Commodity Commodity 2006 2007 20
Slide 33: AAK vision
AAK vision: The first choice for value added vegetable oil solutions 33 CEO, Interim report Year End 2008-02-21
Slide 34: APPENDIX
APPENDIX 34 CEO, Interim report Year End 2008-02- 21
Slide 35: Example of our specialisation strategy
Example of our specialisation strategy AAK The Bakery Fat specialist Year No 1 Bakery process aid 2007 + in Bakery fats Croda Food Service Acquired Bakery fat production 2000 Simple oils Bakery fat 35 CEO, Interim report Year End 2008-02-21
Slide 36: Example of our specialisation strategy
Example of our specialisation strategy Advanced Lipids Joint Venture of AAK and Enzymotec Year High degree of 2007 speciality + Enzymotec More speciality fats 2000 Simple oils Baby Food 36 CEO, Interim report Year End 2008-02-21