aak’s interim report third quarter 2013 · 2017-10-26 · full year 2012 sep 2013 ebit r12m 969 1...

AAK’s Interim Report Third quarter 2013

Arne Frank CEO

Peter Korsholm

CFO

Fredrik Nilsson

Director

Investor Relations

Agenda

Q3 2013

Business area information

AAK Acceleration

Q & A

2

Q3 2013

Volume ´000 MT

Sales

SEK

million

EBIT

SEK

million

EBIT/kg

SEK

EPS

SEK

Net debt

SEK

million

+ 15 %

+ 6 %

- 2 %

+ 8 %

+ 19 %

416 (385)

313* (273)

4,206 (4,277)

4.86 (4.08)

0.75* (0.71)

- 10 % 2,367 (Dec 12: 2,635)

* Adjusted for acquisition costs

3

Third quarter 2013

Operating profit AAK Group

• All time record high operating profit in the third quarter 2013

• Operating profit was SEK 303 million (273), an improvement of 11 percent

• Operating profit, excluding acquisition costs of SEK 10 million and adjusted for fixed currency exchange rates operating profit improved by 16 percent

• Operating profit per kilo excluding acquisition costs amounted to 0.75 (0.71)

Operating profit Business areas

• Food Ingredients reached a record high third quarter result of SEK 211 million (190), an improvement by 11 percent

• Chocolate & Confectionery Fats improved by 19 percent and reached SEK 105 million (88)

• Technical Products & Feed improved by 9 percent to SEK 24 million (22)

4

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

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

Q2 13

Q3 13

Ro

lling

12 m

onth

s, S

EK

/Kg

Quart

er,

SE

K/K

g

AAK Group - Operating profit per kilo

Quarter Rolling 12 months

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

0

50

100

150

200

250

300

350

400

450

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

Q2 13

Q3 13

Ro

lling

12 m

onth

s, '0

00 M

T

Quart

er,

'000 M

T

AAK Group - Volume


Financial summary

5

0

200

400

600

800

1 000

1 200

0

50

100

150

200

250

300

350

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

Q2 13

Q3 13

Quart

er,

SE

K m

illio

n

AAK Group - Operating profit


6

Working capital days Rolling 12 months

0

-3

-3

0

-6

Days reduction since year-end

2012

67 64 61 60 58

-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

Q3 12 Q4 12 Q1 13 Q2 13 Q3 13

Inventory Accounts receivables Accounts payables Others AAK Group

Cash flow SEK million Q3

2013 Q3

2012 YTD

2013 YTD

2012

EBITDA 390 361 1,050 965

Paid interest -27 -31 -80 -89

Paid tax -55 -111 -209 -259

Non-cash items 7 4 -4 6

Change in working capital -12 141 335 476

Cash flow from operating activities incl change in working capital

303 364 1,092 1,099

Cash flow from investments -329 -71 -589 -695

Free cash flow -26 293 503 404

7

Cash flow from operating activities incl changes in working capital amounted to SEK 303 million (364)

• EBITDA improved by SEK 29 million, from SEK 361 million to SEK 390 million

• Cash flow from change in working capital was negative SEK 12 million (positive 141)

During the fourth quarter of 2013 working capital is expected to increase significantly related to the expected volume growth in Chocolate & Confectionary Fats

Raw material prices

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

Time lag of six to nine months

8

400

600

800

1 000

1 200

1 400

1 600

USD

/tonne

Rapeseed oil Palm oil

8%

10%

12%

14%

16%

18%

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

Q2

13

Q3

13

Rolling 12 months Quarter

ROCE – 30 September 2013

Sep 2012

Full year 2012

Sep 2013

EBIT R12M 969 1 003* 1 091*

Fixed assets 4 028 4 067 4 285

Working capital 2 901 2 761 2 481

ROCE 14.0 14.7 16.1

* Adjusted for Sandy and acquisition costs 9

Business trends year to date

Share of volume

Nord WE UK USA CEE CIS Asia LA

Food Ingedients

Chocolate & Confectionery Fats

Technical Products & Feed

AAK Group

Share of volume

Nord WE UK USA CEE CIS Asia LA

Food Ingredients

65 %


18 %


17 %

AAK Group

100 %

10

Food Ingredients

Third quarter 2013

A record high operating profit reached SEK 211 million (190), an increase by 11 percent

• Strong organic development in speciality and semi-speciality products

• Particularly Infant Nutrition, Latin America, Dairy and Bakery together with Food Service continued to develop well

• Negative currency translation impact of SEK 2 million

• Operating profit at fixed exchange rates improved by 12 percent

Operating profit per kilo remained stable at 0.78 (0.78)

Volume growth by 12 percent

• We have been particularly successful in semi-speciality in Bakery, Dairy Fat Alternatives and Food Service

• For comparable units volumes increased by 9 percent

11

+11%

+12%

Food Ingredients

12

0

100

200

300

400

500

600

700

800

900

0

50

100

150

200

250

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

Q2 13

Q3 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

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

Q2 13

Q3 13

Ro

lling

12 m

onth

s, S

EK

/kg

Quart

er,

SE

K/k

gFood Ingredients - Operating profit per kilo



Third quarter 2013

The operating profit improved strongly and reached an increase of 19 percent at SEK 105 million (88)

• The underlying Cocoa Butter Equivalent (CBE) margin has improved driven by the increase in cocoa butter prices which have risen significantly over the last 9-12 months

• Negative currency translation impact of SEK 2 million

• Operating profit at fixed exchange rates improved by 22 percent

Operating profit per kilo at SEK 0.93 (0.87)

• Improved by 19 percent mainly due to a better product mix, increased volume of CBE and Personal Care volumes but lower volume of the low-end product range

Total volume remained stable

13

+19%

+22%


14

0

100

200

300

400

500

600

0

20

40

60

80

100

120

140

160

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

Q2 13

Q3 13

Ro

lling

12 m

onth

s, S

EK

millio

n

Quart

er,

SE

K m

illio

n

Chocolate & Confectionery Fats - Operating profit


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

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

Q2 13

Q3 13

Ro

lling

12 m

onth

s, S

EK

/kg

Quart

er,

SE

K/k

gChocolate & Confectionery Fats - Operating profit per kilo


Cocoa butter price

For information regarding cocoa and cocoa butter please refer to information at www.icco.org.

15

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

USD

/tonne


Third quarter 2013

Operating profit of SEK 24 million (22)

• Improvement was mainly due to feed and technical fatty acids businesses

Volumes increased by 3 percent

• Mainly driven by increased volumes of feed business

16

+9%

+9%

0

20

40

60

80

100

120

140

0

5

10

15

20

25

30

35

40

45

50

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

Q2 13

Q3 13

Ro

lling

12 m

onth

s, S

EK

millio

n

Quart

er,

SE

K m

illio

nTechnical Products & Feed - Operating profit


AAK Acceleration - Growth

17

AAK Acceleration projects KPI Q3 13

KPI Q2 13

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 - Efficiency


KPI Q2 13

Purchasing

Productivity



18

AAK Acceleration - People


KPI Q2 13

Sales

Mobilize Ourselves

Internal communication



19

Business area guidance

Food Ingredients

• Considering the operating profit for the fourth quarter last year was unusually strong characterized by a very favourable product mix combined with unusually high production yields, we expect the operating profit for the fourth quarter 2013 to be slightly lower than last year

• However, we do not expect any slow-down in the mid to long-term positive business trends for Food Ingredients. We expect the year to year rate of operating profit improvement for the full year 2013 for the business area to be approximately 10 percent


• The performance of the business area is expected to continue its significant recovery


• For the next quarters the operating result is expected to be in line with prior year

20

Concluding remarks from CEO

Based on AAK’s customer value propositions for

• Health and 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

• Continued strong underlying development in Food Ingredients, however, with a lower operating profit during the fourth quarter 2013 compared to last year, because of the exceptionally strong result in the fourth quarter 2012 for this business area

• Chocolate & Confectionery Fats is expected to continue its significant recovery

21

Questions & answers

22

Financial calendar

Financial calendar 2013

November 12, 2013 Capital Market Day – Stockholm

November 22, 2013 Capital Market Day – London

February 5, 2014 Fourth quarter and year-end report

23

Financial calendar 2014

April 23, 2014 First quarter 2014

July 17, 2014 Second quarter 2014

October 29, 2014 Third quarter 2014

February 3, 2015 Fourth quarter 2014

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

24

mailto:[email protected]

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

The first choice

for value-added

vegetable oil

solutions

aak’s interim report third quarter 2013 · 2017-10-26 · full year 2012 sep 2013 ebit r12m 969 1...

Documents