Aak Ab · OMXSTO:AAK
Aak Ab — Q1 2023 Earnings Presentation
15 slides from Aak Ab's earnings presentation, May 4, 2023
Slide 1: Interim Report First quarter 2023
Interim Report First quarter 2023 Johan Westman, CEO Tomas Bergendahl, CFO The Co-Development Company 1
Slide 2: Agenda
Agenda 1) Highlights Q1 2) Selected key events 3) Business & financial update 4) Concluding remarks 5) Q&A 2
Slide 3: Strong start to the year; results confirmed as per April pre-announcement
Strong start to the year; results confirmed as per April 13 pre- announcement Highlights Q1 2023 Growth and returns Q1 2023 • Operating profit increased 34 percent at fixed foreign exchange rates. • Operating profit per kilo up 43 percent at fixed FX rates, with all three Volume Operating profit bus
Slide 4: Selected key events
Selected key events Raising the bar on cocoa flavor Sustainability from plant to brand • Our newly launched CEBES™ Choco 15 is the only solution in the • On April 4, we published the 2022 AAK Sustainability Report. The market that allows up to 15 percent of cocoa ingredients. report demonstrates how
Slide 5: Food Ingredients
Food Ingredients SEK million Operating profit SEK million Operating profit Revenue Operating profit 600 582 2,000 Volume growth per kilo SEK million SEK million 550 1,800 SEK 500 1,600 450 1,400 +10% +58% +70% -7% 400 369 1,200 362 7,859 582 1.73 350 1,000 337 7,141 300 800 250 600 369 1.02 400 50 2
Slide 6: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats SEK million Operating profit SEK million Operating profit Revenue Operating profit 350 1,400 Volume growth per kilo 327 SEK million SEK million SEK 300 258 1,200 250 1,000 +10% +27% +40% -9% 800 200 137 3,735 327 2.64 124 3,407 150 600 258 1.88 400 50 200 0 0 Q1 Q2 Q3
Slide 7: Technical Products & Feed
Technical Products & Feed Operating profit Operating profit SEK million SEK million Revenue Operating profit Volume growth per kilo 140 350 SEK million SEK million SEK 120 108 300 100 +5% +9% +33% +26% 81 250 80 76 80 751 108 1.35 200 691 60 81 1.07 150 40 20 100 0 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 8: Prices of key raw materials have stabilized
Prices of key raw materials have stabilized Comments • Price levels of palm oil and rapeseed oil have stabilized at a lower level than seen in 2022 but remain elevated compared to historic levels. • Raw material prices impact working capital and capital employed. • From the current raw material pric
Slide 9: Strong cash flow on the back of increased earnings and reduced working capital
Strong cash flow on the back of increased earnings and reduced working capital Cash flow Q1 2023 Comments (-2,004) • Working capital was positively affected by lower raw material prices. This had a 206 positive effect on inventory with a 377 (852) (-133) corresponding negative effect on 1.180 payabl
Slide 10: Return on Capital Employed (ROCE) increase on strong operating profit and lower working capital
Return on Capital Employed (ROCE) increase on strong operating profit and lower working capital due to raw material prices % 17,0 ROCE end Q1 2023* 16,0 15.2% 15,2 15,0 EBIT LTM Capital 14,0 employed* SEK 3,176 SEK 20,948 13,0 million million 1,0 0,0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q
Slide 11: Net debt/EBITDA decline on strong profit growth and lower raw material prices
Net debt/EBITDA decline on strong profit growth and lower raw material prices Net debt/EBITDA ratio 3.00 2.50 2.00 1.50 1.36 1.00 0.50 0.00 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 The Co-Development Company 11 11
Slide 12: Concluding remarks
Concluding remarks • A strong start to the year with solid performance across all three business areas. • Operating profit growth driven by our increased focus on speciality solutions, productivity improvements, as well as favorable market conditions and price management. • While some of the perform
Slide 13: Q&A
Q&A 13
Slide 14: Financial calendar
Financial calendar Financial calendar 2023 July 19 Interim report 1H, 2023 October 25 Interim report 9M, 2023 February 7, 2024 Interim report 12M, 2023 The Co-Development Company 14 14
Slide 15: Making Better Happen
Everything we do is about Making Better Happen™