Aak Ab · OMXSTO:AAK
Aak Ab — Investor Presentation (November 2015)
19 slides from Aak Ab's investor presentation, November 2015
Slide 1: CFO Update
Fredrik Nilsson, CFO CFO Update
Slide 2: Good progress in the focus areas presented at the CMD 2014
Good progress in the focus areas presented at the CMD 2014 Strengthen growth through: Organic growth Customer co-development New markets Selective acquisitions Capital efficiency Working capital management 2 The Co-Development Company
Slide 3: AAK’s Performance from January 2010 – a history of success
AAK’s Performance from January 2010 a history of success Operating profit EPS improvement* improvement* +10% +15% Dividend increase* Market capitalization multiplied by ~ +9% 3.2x * Average January 2010 – December 2015 (analyst consensus, 8 November 2015) 3 The Co-Development Company
Slide 4: Key financial disclosures
Key financial disclosures Q1-3 Q1-3 2015 2014 Change % Income statement Volumes ('000 MT) 1 342 1 241 101 +8% Sales 14 848 12 958 1 890 +15% Operating profit* 1 023 899 124 +14% Operating profit per kilo* 0,76 0,72 0,04 +5% Earnings per share 16,52 14,03 2,49 +18% Financial position Equity ratio 50%
Slide 5: Continuous y/y improvements
Continuous y/y improvements YTD Q3 Q2 Q1 Volume Reported +8% +2% +12% +11% (’000 MT) Organic +4% +3% +4% +3% Operating profit Reported +14% +14% +16% +12% (SEK million) Fixed FX and comp. units +4% +7% +4% +1% EPS (SEK) +18% +12% +30% +12% 5 The Co-Development Company
Slide 6: Net debt has decreased due to strong operating cash flow
Net debt has decreased due to strong operating cash flow 3 000 2 500 2 000 69 284 1 439 SEK million 1 500 467 2 508 199 1 000 85 2 035 500 0 Net debt EBITDA plus Paid interest Paid tax Capex net Dividend Other items Net debt 12/2014 change in 9/2015 working capital 6 The Co-Development Company
Slide 7: Working capital days – rolling 3 months
Working capital days* – rolling 3 months 95 30,0% 90 28 days in improvement or 27,5% 85 SEK 1,200 million 25,0% 80 22,5% 75 20,0% 70 17,5% 65 60 15,0% 55 12,5% 50 10,0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014
Slide 8: Raw material prices
Raw material prices 10 percent change in all raw material prices will effect working capital by +/- SEK 250 million Time lag of six to nine months 8 The Co-Development Company
Slide 9: ROCE
ROCE 18% 16% 14% Q3 Q4 Quarter 2015 2014 12% EBIT (R12M) 1,395 1,262 Fixed assets 5,596 5,428 10% Working capital 3,310 3,301 ROCE 15.7 14.5 8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 Rolling 12 months
Slide 10: Strong financial foundation supports strategy execution
Strong financial foundation supports strategy execution Equity ratio Net Debt and Net Debt/EBITDA 60% 4 000 3,00 50% 2,50 3 500 SEK million 2,00 3 000 40% 1,50 2 500 1,00 30% 2 000 0,50 20% 1 500 0,00 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1
Slide 11: Structure of loans and borrowings
Structure of loans and borrowings Net debt end of September SEK 2,035 million Maturity profile of interest-bearing debt Main financing sources (SEK million) EUR 400 million club loan 2 000 Maturing in H1/2020 + 1Y 1 750 1 500 SEK 1 400 million multi currency facility SEK million 1 250 Maturing in H1
Slide 12: Dividend policy
Dividend policy Strive to pay stable dividend linked to the long term performance – 30 to 50% of the consolidated profit after tax 300 40% 35% 250 30% SEK million 200 25% 20% 150 15% 10% 100 5% 50 0% 2010 2011 2012 2013 2014 Dividend Dividend/Net profit Annual increased dividend 12 The Co-Developmen
Slide 13: EPS and DPS evolution
EPS and DPS evolution 25 20 SEK 15 10 +14% +13% +11% 5 0 2011 2012 2013 2014 EPS DPS 13 The Co-Development Company
Slide 14: Geographical profit generation
Geographical profit generation Europe Asia/Africa 41% 11% North and South America 47% 14 The Co-Development Company
Slide 15: Follow up on the Management ambition
Follow up on the ”Management ambition”* SEK million *As expressed at the Capital Market Day November 10, 2010 and at fixed exchange rates ** ** November 8, 2015, excl. estimated acquisition costs in Q4 2015: SEK 12-15 million 15 The Co-Development Company
Slide 16: Investing for future growth
Investing for future growth SEK million 16 The Co-Development Company
Slide 17: Possible volume growth from acquisitions and greenfields
Possible volume growth from acquisitions and greenfields (’000 MT) 17 The Co-Development Company
Slide 18: Key topics on the CFO’s agenda
Key topics on the CFO’s agenda Performance Strong Selective management balance sheet acquisitions Organic volume Working capital Support and challenge growth management Evaluate new EBIT improvement CAPEX management opportunities 18 The Co-Development Company
Slide 19: Q&A
Q&A www.aak.com