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Arne Frank CEO Anders Bystrรถm CFO Fredrik Nilsson Head of IR

Interim Report Third quarter 2011


Agenda Third quarter 2011

Business Area information

AAK Acceleration

Other major events

Q&A

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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 Golden Foods/Golden Brands acquisition (SEK 225 million in net sales); commodity volumes were down, mainly as earlier predicted in the UK.

Operating profit, amounted to SEK 246 million (231), an improvement of 6 percent • At fixed exchange rates operating profit improved by 13 percent

Earnings per share amounted to SEK 3.48 (3.73) • Decrease of 7 percent, due substantially to the impact of revaluing interest rate swap contracts arranged to fix forward interest rates The first choice for value-added vegetable oil solutions

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Third quarter Food Ingredients • Operating result amounted to SEK 143 million (124)

+15% +22%

• 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 in the plants • Volumes increased by 3 percent compared to last year mainly due to the acquisition in US

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Third quarter Chocolate & Confectionery Fats

+10%

• Operating result amounted to SEK 112 million (102)

+18%

• 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 mix. • Volumes increased by 13 percent compared to last year

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 and the planned but longer than normal maintenance stop in Karlshamn The first choice for value-added vegetable oil solutions

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Financial summary Focus the analysis on:

AAK Group - Volume

• Volume Quarter, '000 MT

• Operating profit per kilo • Return on Net Operating Assets • Net Debt / EBITDA

1 800

400

1 600

350

1 400

300

1 200

250

1 000

200

800

150

600

100

400

50

200

0

Rolling 12 months, '000 MT

• Operating profit

450

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

AAK Group - Operating profit per kilo

AAK Group - Operating profit

0,90

0,80

0,80

0,70

0,70

0,60

0,60

0,50

0,50

0,40

0,40

0,30

0,30

0,20

0,20

100

0,10

0,10

0

0,00

Quarter, SEK million

800 250

700

200

600 500

150

400

100

300 200

50 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

Rolling 12 months, SEK/Kg

0,90

Rolling 12 months, SEK million

300

1000 900

Quarter, SEK/Kg

350

Rolling 12 months

0,00 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

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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

13,0%

4,50 4,00

12,0%

3,50

11,0%

3,00 2,50

10,0%

3,87 3,89 3,96

4,12 4,25

4,56

4,42

4,17

4,40 3,85 3,10 2,45

2,16

2,46 2,48

2,20

2,51

2,77 2,90

2,00

9,0%

1,50

8,0%

1,00

7,0%

0,50 0,00

6,0% 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

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

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Food Ingredients Third quarter 2011 Operating profit amounted to SEK 143 million (124*), an increase of 15 percent • The result includes negative translation effects of SEK 8 million • At fixed exchange rates, operating profit was up 22 percent compared to last year • Volumes increased by 3 percent • Continued increased portion of high-value products • Infant Nutrition • Dairy industry • Bakery

• Favourable product mix • High yields in the plants

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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 acquisition is reported in the Food Ingredients business area

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Food Ingredients Food Ingredients - Operating profit 160

600

140 Quarter, SEK million

400

100 80

300

60

200

40 100

20 0

Rolling 12 months, SEK million

500

120

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

0,80

0,70

0,70

0,60

0,60

0,50

0,50

0,40

0,40

0,30

0,30

0,20

0,20

0,10

0,10

0,00

0,00 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

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Rolling 12 months, SEK/kg

Quarter, SEK/kg

Food Ingredients - Operating profit per kg 0,80


Chocolate & Confectionery Fats Third quarter 2011 The operating result reached SEK 112 million (102) • The result included a negative translation impact of SEK 8 million • At fixed exchange rates, operating profit was up 18 percent compared to last year • Volume increased by 13 percent • The general market conditions were stable • Slightly unfavourable product and customer mix

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Chocolate & Confectionery Fats Chocolate & Confectionery Fats - Operating profit 180

600

160 Quarter, SEK million

120

400

100 300 80 60

200

40 100

Rolling 12 months, SEK million

500 140

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

2,40 2,20 2,00 1,80 1,60 1,40 1,20 1,00 0,80 0,60 0,40 0,20 0,00 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

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Rolling 12 months, SEK/kg

Quarter, SEK/kg

Chocolate & Confectionery Fats - Operating profit per kg 2,40 2,20 2,00 1,80 1,60 1,40 1,20 1,00 0,80 0,60 0,40 0,20 0,00


Technical Products & Feed Third quarter 2011 Operating profit was SEK 15 million (29*) • Volumes in the third quarter 2011 increased by 1 percent • 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 maintenance stop in Karlshamn Technical Products & Feed - Operating profit 50

150

45

130

Quarter, SEK million

110

35 30

90

25

70

20

50

15

30

10

Rolling 12 months, SEK million

40

10

5 0

-10 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

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Cash flow SEK million

Q3 2011

Q3 2010

YTD 2011

YTD 2010

Cash flow from operating activities

257

255

692

585

Change in working capital

-68

-340

-902

-360

Cash flow from operating activities incl change in working capital

189

-85

-210

225

Cash flow from investments

-410

-65

-573

-244

Free cash flow

-221

-150

-783

-19

Raw material prices during the first nine months 2011 has decreased, which will positively affect cash flow the first half of 2012 and could potentially have a positive impact already in the fourth quarter of 2011 We have now largely reversed negative cash flow impact of the dramatic raw material price increases during the last six months 2010 The first choice for value-added vegetable oil solutions

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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

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AAK Acceleration – 12 Priority Projects

Growth 1. 2. 3. 4. 5. 6. 7.

Efficiency

8. Purchasing Bakery 9. Productivity Dairy CCF Infant Nutrition Food Service Merger & Acquisition Fast-growing Economies - China - Brazil

People

10. Sales Management & Sales Processes 11. Mobilize Ourselves 12. Internal Communication

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Concluding remarks from CEO

We continue to see very positive effects of the AAK Acceleration program, both in terms of organic growth in speciality products, acquisitive growth and productivity Speciality volumes increased particularly well in Infant Nutrition, Dairy Industry, Bakery and Chocolate & Confectionery Fats The acquisition of Golden Foods/Golden Brands significantly strengthens our ability to supply combined existing and new customers with a broader portfolio of speciality oils and fats solutions in the US The effects on our industry from the more difficult general economy in Europe are difficult to predict. However, with the dramatic food price inflation in 2010, at least for now, behind us, AAK’s customer value propositions for health and reduced costs and the AAK Acceleration program, we remain prudently optimistic for the future The first choice for value-added vegetable oil solutions

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Questions & Answers

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Investor Relations Contacts Arne Frank

Chief Executive Officer and President Phone: +46 40 627 83 00

Anders Bystrรถm

Chief Financial Officer Phone: +46 40 627 83 32

Fredrik Nilsson

Head of Investor Relations and Group Financial Manager Phone: +46 40 627 83 34 Mobile: +46 708 95 22 21 E-mail: fredrik.nilsson@aak.com

Further Investor Relations material can be found at www.aak.com/en/Investor The first choice for value-added vegetable oil solutions

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Financial calendar Financial calendar 2012 9 February, 2012

Interim report for the fourth quarter and fullyear 2011

3 May, 2012

Interim report for the first quarter 2012

15 May, 2012

Annual General Meeting

19 July, 2012

Interim report for the second quarter 2012

7 November, 2012

Interim report for the third quarter 2012

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Cocoa Butter Cocoa Butter - Price Development 60000

50000

SEK/tonne

40000

30000

20000

10000

0

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Raw material price development Raw Material Price - Rapseed and Palm 12000

Rapseed

Palm

10000

SEK/ton

8000

6000

4000

2000

0

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