annual general meeting may 3, 2013 - aakaak.com/global/investor/ceo agm presentation eng...

Arne Frank

CEO

Annual General Meeting May 3, 2013

Result for 2012

AAK Acceleration

Key events

Result first quarter 2013

Agenda

The first choice for value-added vegetable oil solutions 2

Full year 2012

Volume* ´000 MT

Sales

SEK Million

EBIT*

SEK Million

EBIT/kg*

SEK

EPS

SEK

Net debt SEK million

+ 9 %

+ 4%

+ 6 %

+ 6 %

1,511 (1,426)

1,003 (918)

16,911 (16,695)

15.66 (14.72)

0.66 (0.64)

+ 1 %

+ 3 %

* Adjusted for Hurricane Sandy and acquisition related costs

- 16 % 2,635 (3,141)


Key events 2012

The first choice for value-added vegetable oil solutions

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

4

AAK Acceleration

AAK Acceleration projects KPI´s

Bakery

Dairy

Chocolate & Confectionery Fats

Infant Nutrition

Food Service

Acquisitions

Emerging markets


Purchasing

Productivity

Sales

Employees

Internal Communications

Behind plan Ahead of plan

Slightly ahead

of plan On plan

N.A.

5

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Focus on growing markets – edible oils volume

Nordics West Europe

USA CEE CIS

Asia Latin America

* Management ambition

69% 62%

47% 40%

18% 18%

31%

13% 20% 22%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2009 2012 2015-2016*

Slow growing markets Medium growing markets Fast growing markets

6


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

7


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 • Excellent platform for our Food Service

strategy • Significantly broadens our product

offerings in the United States

8

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 portfolio of Food Service products in Scandinavia


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-Prize by Veckans Affärer

and the energy provider E.ON

10

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 operating profit by SEK 21 million


Changes in Management


Peter Korsholm Chief Financial Officer

Anne Mette Olesen Chief Marketing Officer

Terrence Thomas Vice President AAK USA

12


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

Other external factors

13

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)


Food Ingredients

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

Quarter Rolling 12 months


Operating profit*

15

*Adjusted for the effects of Hurricane Sandy

Chocolate & Confectionery Fats

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


*Adjusted for the effects of Hurricane Sandy


Operating profit*

16


Price development – cocoa butter

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

US

D/t

on

17

Technical Products & Feed

-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



Operating profit

18

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

19

AAK Acceleration - Management Growth ambition*

800 800

400

400

Acquisitions

Organic Growth

Productivity

Operating profit 2010

* As expressed at the Capital Market Day November 10, 2010 and at fixed exchange rates.

2010 In appr. 4-6 years

Actual 11 %

Actual incl acquisitions

14 %


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 main drivers for our optimism are:

• Strong Food Ingredients business

• The expected recovery in our Chocolate & Confectionary Fats business will occur during the second half of 2013

Concluding remarks from CEO


Thank you for your support and commitment

22

annual general meeting may 3, 2013 - aakaak.com/global/investor/ceo agm presentation eng...

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