aak’s interim report first quarter 2013 · full year 2012 q1 2013 ebit r12m 927 1 003* 1 025* ......

AAK’s Interim Report First quarter 2013

Arne Frank CEO

Peter Korsholm

CFO

Fredrik Nilsson

Director

Investor Relations

2

Agenda

Q1 2013

Business Area information

AAK Acceleration

Q & A

3

Q1 2013

Volume ´000 MT

Sales SEK

Million

EBIT SEK

Million

EBIT/kg SEK

EPS SEK

Net debt

SEK million

+10 %

+ 3 %

- 5 %

+ 6 %

+ 10 %

388 (366)

242 (220)

4,011 (4,222)

3.78 (3.43)

0.62 (0.60)

- 5 % 2,517 (Dec 12: 2,635)

4

First quarter 2013

The operating profit for the first quarter was record high, reaching SEK 242 million (220), an improvement by 10 percent

• Negative currency translation impact of SEK 6 million

• Food Ingredients reached a record high operating profit of SEK 158 million (137), an improvement of 15 percent

• Chocolate & Confectionery Fats reached an operating profit of SEK 84 million (81)

• Technical Products & Feed reported slightly improved operating profit at SEK 26 million (25)

Operating profit per kilo improved to SEK 0.62 (0.60)

Cash flow from operating activities amounted to SEK 213 million (384)

• EBITDA improved by SEK 25 million, from SEK 305 million to SEK 330 million

5

Financial summary

700

800

900

1 000

1 100

100

120

140

160

180

200

220

240

260

280

300

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling 12 m

onths, S

EK

millio

n

Qua

rter

, S

EK

mill

ion

AAK Group - Operating profit

Quarter Rolling 12 months

0,30

0,35

0,40

0,45

0,50

0,55

0,60

0,65

0,70

0,75

0,80

0,30

0,35

0,40

0,45

0,50

0,55

0,60

0,65

0,70

0,75

0,80

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling

12 m

onth

s, S

EK

/Kg

Quart

er,

SE

K/K

g

AAK Group - Operating profit per kilo


1 000

1 100

1 200

1 300

1 400

1 500

1 600

300

325

350

375

400

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling

12 m

onth

s, '0

00 M

T

Quart

er,

'000 M

T

AAK Group - Volume

Series1 Rolling 12 months

6

1

0

-3

-1

-3

Days reduction

73 70 67 64 61

-40

-30

-20

-10

0

10

20

30

40

50

60

70

80

90

100

110

-40

-30

-20

-10

0

10

20

30

40

50

60

70

80

90

100

110

Q1 12 Q2 12 Q3 12 Q4 12 Q1 13

Inventory Accounts receivables Accounts payables Others AAK Group

Working capital days Rolling 12 months

7

SEK million Q1 2013

Q1 2012

EBITDA 330 305

Paid interest -24 -31

Paid tax -97 -29

Change in working capital 4 139

Cash flow from operating activities incl change in working capital

213

384

Cash flow from investments -95 -107

Free cash flow 118 277

EBITDA improved by SEK 25 million, from SEK 305 million to SEK 330 million

Cash flow from operating activities including changes in working capital was positive SEK 213 million (384)

• Positive cash flow from reduction in working capital was SEK 4 million (139)

• Taxes of SEK 97 million were paid during Q1 2013 compared to SEK 29 million in Q1 2012. The company expects this to reverse during the second quarter

Cash flow, after net investments of SEK 95 million (107) was SEK 118 million (277)

Cash flow

9,0%

10,0%

11,0%

12,0%

13,0%

14,0%

15,0%

16,0%

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

R12M Quarter

8

RONA – 31 March 2013

* Rolling 12 months adjusted for Sandy and acquisition costs

Q1 2012

Full year 2012

Q1 2013

EBIT R12M 927 1 003* 1 025*

Fixed assets 3 775 4 067 4 032

Working capital 3 151 2 761 2 776

RONA 13.4 14.7 15.1

9

10 percent change in all raw material prices will effect working capital by +/-SEK 250 million

Time lag of six to nine months

Raw material prices

0

200

400

600

800

1 000

1 200

1 400

1 600

USD

/tonne

Rapeseed Palm

10

Share of volume

Nord WE UK USA CEE CIS Asia LA

Food Ingedients

64 %

Chocolate & Confectionery Fats

19 %

Technical Products & Feed

17 %

AAK Group

100 %

Business trends year to date

10

11

First quarter 2013

A record high operating profit reached

SEK 158 million (137)

• Very strong performance in Infant Nutrition and Latin America


Operating profit per kilo was stable

• SEK 0.63 per kilo same as Q1 2012

• Operating profit per kilo has been diluted by the Oasis acquisition made in May 2012 which has a lower operating profit per kilo than the average for the business area

Volume growth by 15 percent

• Attributable mainly to acquired businesses and increases in semi-speciality and speciality products

• Continued drop in commodity volumes in the UK and in Scandinavia

• For comparable units volumes decreased by 2 percent

+ 15%

Food Ingredients

12

0

100

200

300

400

500

600

700

800

0

50

100

150

200

250

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling

12 m

onth

s, S

EK

millio

n

Quart

er,

SE

K m

illio

n

Food Ingredients - Operating profit


0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

1,00

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

1,00

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling

12 m

onth

s, S

EK

/kg

Quart

er,

SE

K/k

gFood Ingredients - Operating profit per kilo


Food Ingredients

13

First quarter 2013

The operating profit reached SEK 84 million (81)


• For the first time in 12 months the business area reported an improvement in profitability compared to the corresponding quarter last year

Operating profit per kilo at SEK 1.17 (1.03)

• Improved by 14 percent mainly due to a better product mix

Volumes declined by 8 percent

+ 4%


14

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1,80

2,00

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1,80

2,00

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling

12 m

onth

s, S

EK

/kg

Quart

er,

SE

K/k

g

Chocolate & Confectionery Fats - Operating profit per kilo


0

100

200

300

400

500

600

0

20

40

60

80

100

120

140

160

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling

12 m

onth

s, S

EK

millio

n

Quart

er,

SE

K m

illio

n

Chocolate & Confectionery Fats - Operating profit



15

Cocoa butter price

For information regarding cocoa and cocoa butter please refer to information at

www.icco.org.

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

USD

/tonne

16

First quarter 2013

Operating profit of SEK 26 million (25)

• Despite challenging business climate

Volumes decreased by 6 percent

+ 4%

-10

10

30

50

70

90

110

130

150

0

5

10

15

20

25

30

35

40

45

50

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Ro

lling

12 m

onth

s, S

EK

millio

n

Quart

er,

SE

K m

illio

n

Technical Products & Feed - Operating profit



17

Food Ingredients

• We remain optimistic

• We expect the rate of operating profit improvement in 2013 to be lower than during 2012. Albeit still double digits


• Performance expected to stabilize in the first part of 2013

• Irrespective of market conditions, the anticipated improvement in the Chocolate & Confectionary Fats results is unlikely to be significant until the second half of 2013


• The next quarters will continue to be challenging, but profitability is expected to slowly improve

Business area guidance

18

AAK Acceleration projects KPI Q1 13

KPI Q4 12

Bakery

Dairy

CCF

Infant Nutrition

Food Service

Merger & Acquisition N.A N.A

Fast-growing economies

• China

• Brazil

Ahead of plan On plan

Slightly ahead of plan Behind plan

AAK Acceleration - Growth

19


KPI Q4 12

Purchasing

Productivity

AAK Acceleration - Efficiency



20


KPI Q4 12

Sales

Mobilize Ourselves

Internal communication

AAK Acceleration - People



21

Based on AAK’s customer value propositions for:

• Health

• Reduced costs

• Customer product co-development and solutions approach

• AAK Acceleration program

We continue to remain prudently optimistic for the future. The main drivers are expected to be:

• Strong Food Ingredients business

• The expected recovery in our Chocolate & Confectionary Fats business

• Irrespective of market conditions, the anticipated improvement in the Chocolate & Confectionary Fats results is however unlikely to be significant until the second half of 2013

Concluding remarks from CEO

22

Questions & Answers

23

Financial calendar 2013

3 May, 2013 Annual General Meeting

22 July, 2013 Second quarter report

30 October, 2013 Third quarter report

12 November, 2013 Capital Market Day – Stockholm

22 November, 2013 Capital Market Day – London

4 February, 2014 Fourth quarter and year-end report

Financial calendar

24

Investor Relations contacts

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

Peter Korsholm Chief Financial Officer Phone: +46 40 627 83 00

Fredrik Nilsson Director Group Controlling and Investor Relations Phone: +46 40 627 83 34 Mobile: +46 708 95 22 21 E-mail: [email protected]

Further Investor Relations material can be found at www.aak.com/en/Investor

mailto:[email protected]

http://www.aak.com/en/Investor/

25

The first choice

for value-added

vegetable oil

solutions

aak’s interim report first quarter 2013 · full year 2012 q1 2013 ebit r12m 927 1 003* 1 025* ......

Documents