Slide 1: Financial update
Anders Byström CFO Financial update
Slide 2: Third quarter
Third quarter Net sales in the third quarter increased to SEK 4,462 (3,774) million • Increased raw material prices and better product mix • Negative currency translation impact of SEK 246 million • Volumes increased by 5 percent due to increases in speciality volumes, including the impact of the Go
Slide 3: Financial summary
Financial summary Focus the analysis on: AAK Group - Volume 450 1 800 • Volume 400 1 600 Rolling 12 months, '000 MT 350 1 400 • Operating profit 300 1 200 Quarter, '000 MT 250 1 000 • Operating profit per kilo 200 800 150 600 • Return on Net Operating Assets 100 400 • Net Debt / EBITDA 50 200 0 0 Q1
Slide 4: Financial summary
Financial summary Focus the analysis on: • Volume • Operating profit • Operating profit per kilo • Return on Net Operating Assets • Net Debt / EBITDA Return on Net Operating Assets - Rolling 12 months NET DEBT/EBITDA 15,0% 14,0% 5,00 4,56 4,42 4,40 13,0% 4,50 4,12 4,25 4,17 3,87 3,89 3,96 3,85 4,00
Slide 5: Third quarter: Food Ingredients
Third quarter Food Ingredients +15% • Operating result amounted to SEK +22% 143 million (124) • The result includes negative translation effects of SEK 8 million • Continued increased portion of high value products • The business area had a favourable product mix and generally also very high yields
Slide 6: Food Ingredients
Food Ingredients Food Ingredients - Operating profit 160 600 140 500 Rolling 12 months, SEK million 120 Quarter, SEK million 400 100 80 300 60 200 40 100 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 Quarter Rolling 12 months
Slide 7: Acquisition of Golden Foods/Golden Brands - Financial impact
Acquisition of Golden Foods/ Golden Brands - Financial impact July to December 2011 • Limited impact on AAK Group operating profit Operating profit per kilo in line with current group average from January 2012 Full year volume (2012) in the range of 70 000 - 80 000 MT Integration on track The acquis
Slide 8: Third quarter: Chocolate & Confectionery Fats
Third quarter Chocolate & Confectionery Fats +10% • Operating result amounted to +18% SEK 112 million (102) • The result includes negative translation effects of SEK 8 million • Margins in Chocolate & Confectionery Fats continued to be stable but with an slightly unfavourable product and customer mi
Slide 9: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats Chocolate & Confectionery Fats - Operating profit 180 600 160 500 Rolling 12 months, SEK million 140 Quarter, SEK million 120 400 100 300 80 60 200 40 100 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11
Slide 10: Third quarter: Technical Products & Feed
Third quarter Technical Products & Feed -48% • Operating profit amounted to SEK 15 million (29) • The reduced profitability in the business area during the third quarter was due to • Increased raw material costs for fatty acids • Crushing margins under pressure • The planned but longer than normal m
Slide 11: Cash flow
Cash flow SEK million Q3 Q3 YTD YTD 2011 2010 2011 2010 Cash flow from operating activities 257 255 692 585 Change in working capital -68 -340 -902 -360 Cash flow from operating activities incl 189 -85 -210 225 change in working capital Cash flow from investments -410 -65 -573 -244 Free cash flow -2
Slide 12: Raw material prices
Raw material prices Significant raw material price increases during the last six to nine months • Negative cash flow impact • 10 percent change in all raw material prices will effect working capital by +/-SEK 250 million +50 % -25% The first choice for value-added vegetable oil solutions 12
Slide 13: Credit facilities
Credit facilities Long term refinancing of SEK 4,200 million was finalized in January 2011 3000 mill Club Deal 1250 mill Bilateral 1000 mill Bilateral 650 mill Mortgage loan 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 • Part of total committed facilities of SEK 6,000 million • 5 years or more
Slide 14: Earnings per share
Earnings per share 6,00 18,00 16,00 5,00 14,00 4,00 12,00 Rolling 12 months, SEK Quarterly , SEK 10,00 3,00 8,00 2,00 6,00 4,00 1,00 2,00 0,00 0,00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 Improved earnings per share by 40 percent (rolling 12 months)
Slide 15: Stock option program
Stock option program 70 senior executives and key mangers bought warrants at market price • Dilution of maximum 3.54 percent Strike SEK 188 Warrant SEK 21 Break-even SEK 209 The first choice for value-added vegetable oil solutions 15