Slide 1: Interim Report Q3 and first nine months 2009
Jerker Hartwall CEO A d Anders Byström B t ö CFO Interim Report Q3 and first nine months 2009
Slide 2: CEO Summary – Q3 2009
CEO Summary – Q3 2009 Record high cash flow in the third quarter materialised as expected and has further strengthened the balance sheet. Food Ingredients continued to improve operating profit by 19 percent. Chocolate & Confectionery Fats continued to be consumption negatively affected by the lower
Slide 3: Highlight Q3 2009
Highlight Q3 2009 Nett sales N l d down att SEK 3,828 3 828 million illi (4,693) (4 693) due d to t lower raw material prices. The operating result was SEK 235 million (261). Cash flow from operating activities before investments amounted to SEK 858 million (-48) an improvement by SEK 906 million. A
Slide 4: Highlight first nine months 2009
Highlight first nine months 2009 Net sales down at SEK 12,096 12 096 million (12,443) (12 443) due to lower raw material prices. The operating result was SEK 538 million (639). Strong cash flow from operating activities before investments amounted to SEK 1,515 million ((-362) 362), an improvement by
Slide 5: Operating profit rolling months
Operating profit rolling 12 months Excl final 900 insurance 800 851 compensation 817 801 777 700 750 698 717 600 653 Miillion 583 llion 500 549 498 SEKmi 400 455 SEK 300 200 100 0 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 All financial information on this page is exclus
Slide 6: Insurance
Insurance To date, AAK has received payments for business interruption in the amount of approximately pp y SEK 421 million. Our ambition is to have the final insurance settlement before year-end 2009. Interim Report Q3 and first nine months 2009 6
Slide 7: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats Operating profit Q3 July - September 180 160 Operating profit declined 140 by SEK 46 million to SEK 120 118 million. SEK Million 100 80 60 Continued to be negatively 40 affected by lower 20 chocolate consumption 0 following the recession. recession Q107 Q207 Q307 Q407
Slide 8: Chocolate & Confectionery Fats - EBIT per tonne, SEK, rolling 12 months
Chocolate & Confectionery Fats - EBIT per tonne, SEK, rolling 12 months Excl final 2 000 1 811 insurance 1 742 1 800 1 693 compensation 1 600 1 600 1 488 1 514 1 363 1 400 1 236 1 200 980 1 000 800 800 660 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 2008 2009 20
Slide 9: Food Ingredients
Food Ingredients Operating profit Q3 July - September 120 100 The operating p gp profit continued to improve in this quarter by 80 19 percent to SEK 113 million. EK Million 60 Improved margins following SE 40 the larger proportion of high- 20 value products and positive currency impact. 0 Q107 Q207
Slide 10: Food Ingredients EBIT per tonne, SEK, rolling months
Food Ingredients EBIT per tonne, SEK, rolling 12 months 450 405 378 400 362 335 339 350 308 312 317 311 312 314 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 Interim Report Q3 and first nine months 2009 10
Slide 11: Technical Products & Feed
Technical Products & Feed Operating profit Q3 July - September 25 Operating profit improved by 20 SEK 4 million or 25 percent. EK Million 15 The Feed business developed strongly. t l SE 10 5 0 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Interim Report Q3 and first nine months 2009 11
Slide 12: Condensed balance sheet
Condensed balance sheet SEK million 30 Sep 09 31 Dec 08 Difference Sept 09 vs Dec 08 Total ota fixed ed assets 3 870 8 0 4 235 35 -365 365 Inventories 2 255 3 098 -843 C ent receivables Current ecei ables 2 329 3 640 -1 1 311 Cash and cash equiv. 193 105 +88 Total current assets 4 777 6 843 -2 066 T
Slide 13: Summary Cash flow statement for the Group
Summary Cash flow statement for the Group SEK Million Q3 YTD Q3 YTD 2009 2009 2008 2008 Cash flow from operating activities 269 717 235 648 before changes in WC Change in working capital 589 798 -283 -1 010 C h flow Cash fl from f operating ti activities ti iti 858 1 515 -48 48 -362 362 Cash flow fr
Slide 14: Net debt
Net debt NET DEBT 6 000 5 198 5 112 5 231 4 879 4 807 5 000 4 634 4 279 4 000 3 804 3 791 3 559 3 036 3 136 3 000 2 000 1 842 1 814 1 000 0 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Interim Report Q3 and first nine months 2009 14
Slide 15: Financial position
Financial position The Group’s net borrowings as at 30 September 2009 amounted to SEK 3,791 million (SEK 4,807 million on 30 June 2009). Compared to June 30 has net borrowings declined by SEK 1,017 million. The Group has total credit facilities of SEK 6,155 million, of which SEK 5,790 million are co
Slide 16: Major rationalisation program in the Nordic region
Major rationalisation program in the Nordic region Aarhus, Denmark Karlshamn, Sweden Interim Report Q3 and first nine months 2009 16
Slide 17: Rationalisation project
Rationalisation project Volumes Aarhus Karlshamn CBE Multi-oil focus Volumes factory Zaandijk V l Volumes Volumes Niche Interim Report Q3 and first nine months 2009 17
Slide 18: AAK's rationalisation project
AAK’s rationalisation project p j First wave of synergies + Second wave + Third wave SEK 200 million 2005 – 2007 Without any expected additional non-recurring cost SEK 100 million 2007 – 2010 Additional SEK 200 million 2010 – 2011 = Total T t l savings i SEK 500 million, illi 2005 – 2011 Interim Rep
Slide 19: Roadmap to growth
Roadmap to growth Chocolate & Confectionery Fats Food Ingredients Interim Report Q3 and first nine months 2009 19
Slide 20: From bulk to more speciality products
From bulk to more speciality products Speciality products for - Chocolate - Baby food - Bakery Speciality From Commodity - Cosmetic - Acquisitions q Interim Report Q3 and first nine months 2009 20
Slide 21: From bulk to more speciality products
From bulk to more speciality products Speciality products for - Chocolate - Baby food - Bakery Speciality To Commodity - Cosmetic - Acquisitions q Interim Report Q3 and first nine months 2009 21
Slide 22: EBIT – Building blocks
EBIT – Building blocks New products New p products CBE New margins products CBE CBE margins CBE Volumes CBE margins i CBE margins Volumes CBE CBE Volumes Volumes l FI Speciality FI FI Speciality Speciality FI Speciality S i li Synergies Synergies Synergies Synergies FI FI FI FI Commodity Commodity C
Slide 23: The future for AAK
The future for AAK We enhance the speciality strategy. strategy We have strong product development. We are prepared for more acquisitions. We are a more balanced company. 23 Interim Report Q3 and first nine months 2009 23
Slide 24: AAK The first choice for value-added vegetable oil solutions
AAK Th first The fi t choice h i for f value-added vegetable oil solutions Interim Report Q3 and first nine months 2009 24
Slide 25: Appendix
Jerker Hartwall CEO A d Anders Byström B t ö CFO Appendix
Slide 26: CBE Margin Elements
CBE Margin g Elements Cocoa Butter price Raw material costs and crop CBE Margin Capacity utilization in the industry Interim Report Q3 and first nine months 2009 26
Slide 27: Cocoa Butter
Cocoa Butter Cocoa butter 60000 50000 40000 SEK/ton n 30000 20000 10000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Interim Report Q3 and first nine months 2009 27
Slide 28: Raw material price development
Raw material price development Raw material prices - palm-, rapeseed- and soyabean oil 12000 Rapeseed oil Palm oil Soyabean oil 10000 8000 SEK/ton n 6000 4000 2000 0 2002 2003 2004 2005 2006 2007 2008 2009 Interim Report Q3 and first nine months 2009 28
Slide 29: Accumulated IAS 39 effect since the merger
Accumulated IAS 39 effect since the merger 400 300 200 100 0 SEK Million n Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ‐100 2006 2007 2008 2009 ‐200 SEK +486 million in 2009 ‐300 ‐400 ‐500 ‐600 Interim Report Q3 and first nine months 2009 29