Interim report First quarter 2015 - AAKInterim report First quarter 2015 . Agenda The first choice...

Arne Frank CEO

Fredrik Nilsson

CFO

Interim report First quarter 2015

Agenda

The first choice for value-added vegetable oil solutions 2

First quarter 2015

Business area information

AAKtion

Q & A

First quarter 2015


Volume ´000 MT

Sales SEK

million

EBIT SEK

million

EBIT per kilo

SEK

EPS SEK

Net debt SEK

million

+12%

+0%

+17%

+11% Organic

+4%

+12%

443 (400)

321 (287)

4,836 (4,129)

5.11 (4.57)

0.72 (0.72)

-13% 2,170 (2014 Q4: 2,508)

First quarter 2015


Operating profit, AAK Group • Operating profit reached SEK 321 million (287), an

improvement of 12 percent. ‒ The currency translation impact was positive SEK 36 million

‒ Operating profit at fixed foreign exchange rates and adjusted for last year’s divestment of Binol improved by 1 percent

• Operating profit per kilo reached SEK 0.72 (0.72). The currency translation impact was SEK 0.08. Operating profit per kilo was negatively impacted by; ‒ The dilutive effect of the acquisitions in Belgium and Colombia

‒ Material negative year-on-year development for InFat®

‒ Continued volume growth in commodity products in Food Ingredients

Operating profit, business areas • Food Ingredients reached a result of SEK 195 million

(174), an improvement of 12 percent

• Chocolate & Confectionery Fats improved by 17 percent and reached SEK 136 million (116)

• Technical Products & Feed reached a result of SEK 23 million (25 adjusted for Binol divestment)

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 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rolling 12 months, SEK/Kg

Qua

rter

, SEK

/Kg

Operating profit per kilo

Quarter Rolling 12 months

1,200

1,300

1,400

1,500

1,600

1,700

1,800

250

275

300

325

350

375

400

425

450

475

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rolling 12 months, '000 M

T

Qua

rter

, '00

0 M

T

Volume


600

800

1,000

1,200

1,400

100

150

200

250

300

350

400

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rolling 12 months, SEK m

illion

Qua

rter

, SEK

mill

ion

Operating profit



Financial summary – AAK Group


Cash flow

Operating cash flow including changes in working capital amounted to SEK 428 million (81)

As predicted previously, cash flow from working capital was positive and amounted to SEK 86 million (-176). Cash flow from inventory was particularly strong in the first quarter

SEK million Q1 2015

Q1 2014

FY 2014

EBITDA 426 378 1,643

Paid interest -27 -29 -111

Paid tax -43 -76 -319

Non-cash items -15 -17 39

Change in working capital (WC) 86 -176 -560

Cash flow from operating activities incl change in WC 428 81 692

Cash flow from investments -160 -167 -708

Free cash flow 268 -86 -16

56 59 62 64 65

-60-50-40-30-20-100102030405060708090100110

-50-40-30-20-10

0102030405060708090

100110120

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Inventory Accounts receivables Accounts payables Others AAK Group


Working capital days Rolling 12 months

+1

0

0

0

+1

Change since year-end 2014

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

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

USD

/ton

Rapeseed oil Palm oil

8%

10%

12%

14%

16%

18%

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rolling 12 months Quarter


ROCE – first quarter 2015

Quarter Q1 2015

FY 2014

EBIT (R12M) 1,296 1,262 Fixed assets 5,615 5,428 Working capital 3,390 3,301 ROCE 14.4 14.5

Business trends - first quarter 2015


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

68%


16%


16%

AAK Group

100%

Food Ingredients


First quarter 2015 Operating profit improved by 12 percent at SEK

195 million (174) • The currency translation impact was SEK 22 million

Operating profit per kilo declined, as expected, from SEK 0.69 to SEK 0.65 due to;

• The dilutive effect of the acquisitions, SEK 0.07

• The exceptionally strong first quarter 2014 for Advanced Lipids AB, a joint venture of AAK and Enzymotec

• The exceptional volume growth in commodity products

Food Ingredients reported volume growth of 20 percent, mainly due to the acquisitions in Belgium and Colombia

• For comparable units, volumes grew organically by 8 percent

+12%

Food Ingredients – organic volume growth


-1%

-7%

+1%

2014 Q1

-2%

Speciality & semi-speciality

Commodity

Total

-2%

-1%

2014 FY

-1%

+7%

+4%

2013 FY

+8%

+30%

+1%

2015 Q1

300

400

500

600

700

800

900

50

100

150

200

250

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rollin

g 12

mon

ths, S

EK m

illion

Qua

rter

, SEK

mill

ion

Operating profit


0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rolling 12 months, SEK/kg

Qua

rter

, SEK

/kg



Food Ingredients

13

The first choice for value-added vegetable oil solutions

+12%

-6%*

* Including acquisitions



First quarter 2015 As expected, operating profit improved further,

by 17 percent, and reached SEK 136 million (116)

• The currency translation impact was SEK 14 million

Operating profit per kilo improved by 25 percent to SEK 1.89 (1.51)

Volumes declined by 6 percent • The product mix for this business area continued

to improve despite severely deteriorating market conditions in Ukraine and Russia

• Low-end products continued to be under very strong competitive pressure and declined further

+17%

200

300

400

500

600

40

60

80

100

120

140

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rolling 12 months, SEK m

illion

Qua

rter

, SEK

mill

ion

Operating profit


0.70

0.90

1.10

1.30

1.50

1.70

1.90

0.70

0.90

1.10

1.30

1.50

1.70

1.90

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rolling 12 months, SEK/kg

Qua

rter

, SEK

/kg




15 The first choice for value-added vegetable oil solutions

+25%

+17%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

USD

/ton

Cocoa butter price

16

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




First quarter 2015 Operating profit declined to SEK 23 million

(25), mainly due to a challenging quarter for our fatty acids business

Volumes decreased by 1 percent compared to the corresponding quarter in 2014

• This was mainly related to lower sales of technical products

-8%

-8%

50

70

90

110

130

150

0

5

10

15

20

25

30

35

40

45

50

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Rollin

g 12

mon

ths, S

EK m

illion

Qua

rter

, SEK

mill

ion

Operating profit



Sales

Customer co-development

Innovation Service

Quality

Productivity

Ahead of plan On plan Behind plan

Concluding remarks from CEO

19

Based on AAK’s customer value propositions for • Health and reduced costs

• Customer product co-development and solutions approach

We continue to remain prudently optimistic about the future

The main drivers; • We are expecting a continued positive underlying

development for Food Ingredients

• We are expecting continued improvement in Chocolate & Confectionery Fats


Questions & answers


Financial calendar


Financial calendar 2015 May 5, 2015 Annual General Meeting

July 17, 2015 Second quarter report 2015

October 29, 2015 Third quarter report 2015

November 18, 2015 Capital Market Day, Stockholm

February 3, 2016 Fourth quarter and year-end report 2015

Fredrik Nilsson Chief Financial Officer 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

Investor Relations contact


mailto:[email protected]

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

The first choice for value-added

vegetable oil solutions

Interim report First quarter 2015 - AAKInterim report First quarter 2015 . Agenda The first choice...

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