Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2022)
18 slides from Aak Ab's investor day presentation, Nov 29, 2022
Slide 1: Financial development
Financial development Tomas Bergendahl CFO Capital Market Day Stockholm, November 29, 2022 The Co-Development Company Capital Market Day 2022
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements i
Slide 3: Solid performance
Solid performance Strong profit growth despite challenging macro-economic climate Growth and returns – Q3 2022 Growth and returns – YTD 2022 Volume Adjusted Volume Adjusted operating profit operating profit 559,000 MT SEK 822 million 1,688,000 MT SEK 2,110 million (-4%, -1%***) (+28% y/y, +5% y/y*)
Slide 4: Volumes impacted by Russia exit and strategy execution
Volumes impacted by Russia exit and strategy execution Different dynamics and varying developments within our business areas Volumes year-over-year January - September Comments 000´MT 1,720 • Russia -1% +1% • Impact of exiting the Russian market 1,702 1,700 • Food Ingredients (FI) 15 1,688 29 • Port
Slide 5: Regional volume growth YTD
Regional volume growth YTD Continuous growth in all regions except Europe -4%* -8% +1% +14% +5% +14% Share of group volumes * Excluding Russia The Co-Development Company Capital Market Day 2022
Slide 6: Strong profit growth
Strong profit growth Driven by portfolio optimization and successful cost management Adjusted operating profit – YTD September 2022 Comments SEK million +7% +22% • Volume 2,200 2,110 • Limited impact from the decline in Food Ingredients and Technical Products & Feed 2,000 263 • Price/Mix 185 1,847 2
Slide 7: Strong track record of increasing profitability
Strong track record of increasing profitability Our focus on value-adding solutions creates financial value Volume and EBIT development over the past decade Adjusted EBIT Volume SEK million (´000MT) 3.000 3.000 2.500 2.500 2.000 2.000 1.500 1.500 1.000 1.000 500 500 0 0 2015 2016 2017 2018 2019 2020
Slide 8: A journey from volume-driven to value-driven
A journey from volume-driven to value-driven Profitability focus through dedicated work with value-adding solutions % 25 22 20 15 14 12 11 10 10 23 Ø 11 10 7 9 2 8 5 8 5 1 5 6 8 4 4 5 5 2 0 -1 -4 -5 2015 2016 2017 2018 2019 2020 2021 2022 9M Volume growth EBIT/kilo growth The Co-Development Company
Slide 9: Raw material price development
Raw material price development Trading at record levels in 2022 USD/ton Rapeseed oil and palm oil Rapeseed oil Palm oil The Co-Development Company Capital Capital Market Market Day Day 2022 2021
Slide 10: Improved WCD in uncertain times
Improved WCD in uncertain times Driven by DSO and DPO Working capital days Days Days 140 81 82 80 78 77 73 70 69 69 72 74 120 73 75 100 71 78 81 81 81 77 77 76 76 76 76 80 63 67 60 40 20 48 47 47 48 47 47 47 46 46 46 46 46 46 0 -20 -33 -34 -35 -37 -37 -38 -39 -39 -41 -42 -42 -41 -41 -40 -5 -6 -7 -8
Slide 11: Increased focus on investing activities going forward
Increased focus on investing activities going forward CAPEX and acquisitions Long-term CAPEX overview CAPEX key priorities SEK million • Safety 1,500 1,421 1,335 1,200 1,150 • Sustainability initiatives 1,016 1,000 900 810 • Capacity expansion 723 650 600 • Efficiency 300 0 • Maintenance 2015 2016 2
Slide 12: Cash flow
Cash flow Impacted by increased raw material prices Cash flow – YTD September 2022 Comments 2,350 270 Other Working Capital • Cash flow from working capital was negative mainly due to higher raw -1,963 Inventory material prices. • Payables was negatively affected by -1,506 Accounts Receivables 3,371
Slide 13: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) Impacted by increasing raw material prices % ROCE end Q3 2022* 17.0 14.8% 16.0 15.0 14.8 EBIT LTM Capital 14.0 employed* SEK 2,769 SEK 18,708 13.0 million million 1.0 0.0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 * ROCE: Return on
Slide 14: Net debt/EBITDA ratio
Net debt/EBITDA ratio Solid platform for continued growth Net debt/EBITDA ratio ratio 3.00 2.50 1.96 2.00 1.50 1.00 0.50 0.00 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 The Co-Development Company Capital Market Capital Market Day Day 2022 2021
Slide 15: Loan and duration profile
Loan and duration profile Short- and long-term credit facilities as per September 2022 Long-term facilities Long-term facilities SEK million SEK million Mortgage 557 83% MTN bond 2,000 Club loan 4,354 Bilateral 1,806 Bilateral bond loan 1,000 Total long-term facilities 9,717 Short-term facilities Sh
Slide 16: Capital allocation principles
Capital allocation principles A priority to be well capitalized – net debt/EBITDA ratio of < 3x Core business investments Mergers & Acquisitions Dividends • Capacity and efficiency • Geographic expansion • 30-50 percent of net profit • Expansion • Capacity expansion • Historic dividend growth of • I
Slide 17: Delivering on our long-term ambition
Delivering on our long-term ambition Operating profit* Operating profit/kilo* SEK SEK million million SEK 3,000 2,769 2,393 1.50 2,500 2,157 2,165 1.20 1,956 1.04 2,000 1,615 1,786 1.00 0.87 0.94 0.99 CAGR 0.77 0.82 0.84 Continuous 1,500 1,000 1,411 11% 0.50 improvement 500 0 0.00 2015 2016 2017
Slide 18: Thank you
Thank you The Co-Development Company Capital Market Day 2022