Slide 1: Annual General Meeting May 3, 2013
Arne Frank CEO Annual General Meeting May 3, 2013
Slide 2: Agenda
Agenda Result for 2012 AAK Acceleration Key events Result first quarter 2013 The first choice for value-added vegetable oil solutions 2
Slide 3: Full year 2012
Full year 2012 Volume* +6% ´000 MT 1,511 (1,426) Sales 16,911 (16,695) + 4% 1% SEK Million EBIT* SEK Million 1,003 (918) +9% EBIT/kg* +3% 0.66 (0.64) SEK EPS 15.66 (14.72) +6% SEK Net debt SEK million 2,635 (3,141) - 16 % * Adjusted for Hurricane Sandy and acquisition related costs The first choice
Slide 4: Key events 2012
Key events 2012 AAK Acceleration Product development Acquisition of • Oasis Foods Company • Crown-Foods A/S CSR achievements • Burkina Faso • Winner of the E-Prize Hurricane Sandy Changes in management Other external factors • Danish fat tax • EU Biofuel proposal The first choice for value-added veg
Slide 5: AAK Acceleration
AAK Acceleration AAK Acceleration projects KPI´s Bakery Dairy Chocolate & Confectionery Fats Infant Nutrition Food Service Acquisitions N.A. Emerging markets Purchasing Productivity Sales Employees Internal Communications Ahead of Slightly ahead On plan Behind plan plan of plan The first choice for
Slide 6: Focus on growing markets – edible oils volume
Focus on growing markets – edible oils volume 100% 13% 90% 20% 22% 80% 18% 70% 18% 60% 60% 31% 50% 40% 69% 30% 62% 47% 20% 40% 10% 0% 2006 2009 2012 2015-2016* Slow growing markets Medium growing markets Fast growing markets Nordics USA Asia West Europe CEE Latin America CIS * Manageme
Slide 7: Product development
Product development Akocream LS 45 • Creamier taste experience in bakery fillings CEBESTM LS 75 • Lower content of saturated fats ILLEXAOTM BR 62 • Improved bloom retarding CHOCOFILLTM LT 05 • Low in trans fat AKOSPREADTM HS 99 • Stabilization to prevent oil separation The first choice for value-add
Slide 8: Acquisition of Oasis Foods Company – May 25, 2012
Acquisition of Oasis Foods Company – May 25, 2012 Oasis Foods • Strong position in Food Service • Revenues of SEK 925 million and 160 employees • Located in Hillside, New Jersey Food Service • Edible oils • Margarine • Spreads • Shortenings • Mayonnaise • Sauces and dressings Strategic rationale • E
Slide 9: Acquisition of Crown-Foods A/S in Denmark – May 31, 2012
Acquisition of Crown-Foods A/S in Denmark – May 31, 2012 Crown-Foods A/S • Scandinavian market leader producing sauces and dressings for Food Service customers • Revenues of SEK 60 million and 20 employees • Located in Mørkøv, Denmark Strategic rationale • Strengthen our ability to supply a broader
Slide 10: CSR - Achievements
CSR - Achievements We triple our activities with women groups in Burkina Faso, in order to • Secure improved supply and quality of the shea kernels • Improve living conditions in the villages With L’Oréal we signed an agreement to develop the sustainable trade of shea kernels Awarded the E-Pri
Slide 11: Hurricane Sandy (USA)
Hurricane Sandy (USA) The Oasis Foods plant was back in production (full capacity) on November 5, 2012 The plant in Port Newark was back in production (reduced capacity) on November 26, 2012 and was by the end of the year back at nearly full capacity Fourth quarter was negatively impacted on operati
Slide 12: Changes in Management
Changes in Management Peter Korsholm Terrence Thomas Anne Mette Olesen Chief Financial Officer Vice President AAK USA Chief Marketing Officer The first choice for value-added vegetable oil solutions 12
Slide 13: Other external factors
Other external factors Danish fat tax cancelled Focus on saturated fat remains EU, Biofuel Proposal We believe this will lead to significant decreases in “food based” biodiesel volumes, potentially leading to several large changes for the European vegetable Oils & Fats industries The first c
Slide 14: Q1 2013
Q1 2013 Volume +6% ´000 MT 388 (366) Sales SEK 4,011 (4,222) -5% Million EBIT SEK 242 (220) + 10 % Million EBIT/kg SEK 0.62 (0.60) +3% EPS SEK 3.78 (3.43) + 10 % Net debt SEK 2,517 (Dec 12: 2,635) -5% million The first choice for value-added vegetable oil solutions 14
Slide 15: Food Ingredients operating profit
Food Ingredients Food Ingredients - Operating profit Operating profit* 250 800 700 Rolling 12 months, SEK million 200 600 Quarter, SEK million 150 500 400 100 300 200 50 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 Quarter Rolling 12 m
Slide 16: Chocolate & Confectionery Fats operating profit
Chocolate & Confectionery Fats Operating profit* Chocolate & Confectionery Fats - 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 09 09 09 09 10 10 10 10 11 11 11 11 12 12
Slide 17: Price development – cocoa butter
Price development – cocoa butter 10 000 9 000 8 000 7 000 6 000 USD/ton 5 000 4 000 3 000 2 000 1 000 0 The first choice for value-added vegetable oil solutions 17
Slide 18: Technical Products & Feed operating profit
Technical Products & Feed Technical Products & Feed Operating profit- Operating profit 50 150 45 130 Rolling 12 months, SEK million 40 110 Quarter, SEK million 35 30 90 25 70 20 50 15 30 10 5 10 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12
Slide 19: Priorities for 2013
Priorities for 2013 Growth • Customer co-development • Emerging markets • Selective acquisitions Continued improved operating profit per kilo • Speciality and semi-speciality vs. Commodity products • Efficiency Improved capital efficiency • Working capital management • Manage CAPEX The first choice
Slide 20: AAK Acceleration - Management Growth ambition
AAK Acceleration - Management Growth ambition* Acquisitions Organic Growth Productivity Operating profit 2010 400 400 Actual 800 11 % 800 Actual incl acquisitions 14 % 2010 In appr. 4-6 years * As expressed at the Capital Market Day November 10, 2010 and at fixed exchange rates. The first choice for
Slide 21: Concluding remarks from CEO
Concluding remarks from CEO AAK’s value propositions: • Healthy products • Reduced costs • Customer product co-development and solutions approach • The AAK Acceleration program allows us to remain prudently optimistic for the future We continue to remain prudently optimistic for the future. The two
Slide 22: Thank you for your support and commitment
Thank you for your support and commitment 22