CEO Anders Byström CFO Fredrik Nilsson Head of IR. Interim Report Q and Summarized

Transcription

1 Arne Frank CEO Anders Byström CFO Fredrik Nilsson Head of IR Interim Report 2011 and Summarized Financial Statement 2011

2 Agenda Fourth quarter and Full year 2011 Business Area information AAK Acceleration Other major events Q & A 2

3 Fourth quarter 2011 Net sales in the fourth quarter increased to SEK million (3,930), 4,483 (3 930) million Increased raw material prices and better product mix Negative currency translation impact of SEK 137 million Volumes increased by 2 percent due to increases in speciality volumes, including the impact of the Golden Foods/Golden Brands acquisition; commodity volumes were down down, mainly in the UK as expected Operating profit, amounted to SEK 265 million (251), an improvement of 6 percent At fixed exchange rates operating profit improved by 10 percent Earnings per share amounted to SEK 4.82 (4.98) Decrease of 3 percent, mainly due to higher taxes 3

4 Full year 2011 Net sales increased to SEK 16,695 million (14,808) million Increased raw material prices and better product mix Negative currency translation impact of SEK 983 million Volume overall decreased by 1 percent due to lower commodity volumes, mainly in the UK. Speciality volumes continue to increase. Operating profit amounted to SEK 911 million (824), an improvement of 11 percent At fixed exchange g rates operating p gp profit improved p by 18 percent Earnings per share amounted to SEK (14.15) Improvement I t off 4 percentt despite d it higher hi h interest i t t rates t Proposed dividend of SEK 4.75 (4.50) an increase of SEK 0.25 or 6 percent. 4

5 Group P/L summary % Change YTD 2011 YTD 2010 % Change % Volume ( 000) % % EBIT % % EBIT/kg % % Financial net % % Net result % % EPS % 5

6 Financial summary Focus the analysis on: Volume Operating profit Operating profit per kilo Return on Net Operating Assets uarter, '000 MT Q AAK Group - Volume Net Debt / EBITDA 0 0 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q Quarter Rolling 12 months Rolling 12 months, '00 00 MT 350 AAK Group - Operating profit ,90 AAK Group - Operating profit per kilo 0,90 r, SEK million Quarter Q1Q2Q3Q1Q2Q3Q1Q2Q3Q1Q2Q3Q1Q2Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q Rolling 12 months, SEK million ter, SEK/Kg Quart 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q ,80 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 Rolling 12 months, SEK/Kg Quarter Rolling 12 months Quarter Rolling 12 months 6

7 Financial summary Focus the analysis on: Volume Operating profit Operating profit per kilo Return on Net Operating Assets Net Debt / EBITDA 15,0% Return on Net Operating Assets -Rolling 12 months NET DEBT/EBITDA 14,0% 13,0% 12,0% 5,00 4,50 4,00 3,87 3,89 3,96 4,12 4,25 4,56 4,42 4,17 4,40 3,85 11,0% 10,0% 9,0% 3,50 3,00 2,50 2,00 3,10 2,45 2,16 2,46 2,48 2,20 2,51 2,77 2,79 2,39 8,0% 7,0% 6,0% Q1 07 Q2 07 Q Q1 08 Q2 08 Q Q1 09 Q2 09 Q Q1 10 Q2 10 Q Q1 11 Q2 11 Q ,50 1,00 0,50 0,00 Q1 07 Q2 07 Q Q1 08 Q2 08 Q Q1 09 Q2 09 Q Q1 10 Q2 10 Q Q1 11 Q2 11 Q

8 Food Ingredients Fourth quarter 2011 Operating profit amounted to +14% SEK 151 million (132), an increase of 14 percent +19% The result includes negative translation effects of SEK 6 million At fixed exchange rates, operating profit was up 19 percent compared to last year Volumes increased by 5 percent Continued increased portion of highvalue products p Infant Nutrition Dairy industry Bakery Favourable product mix We remain prudently optimistic for the future mainly driven by this business area. 8

9 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 MT The acquisition is reported in the Food Ingredients business area Integration is on track 9

10 Food Ingredients Qua arter, SEK million uarter, SEK/kg Q , ,70 0,60 0,50 0,40 0,30 0,20 0,10 Food Ingredients - Operating profit Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q Quarter Rolling 12 months Food Ingredients -Operating profit per kg Rolling 12 months, SE EK million 0 0, ,70 0,60 0,50 0,40 0,30 0,20 0,10 Rolling 12 months, SE EK/kg 0,00 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q Quarter Rolling 12 months 0,00 10

11 Chocolate & Confectionery Fats Fourth quarter 2011 The operating result reached SEK 115 million (106) The result included a negative translation impact of SEK 5 million +8% +13% At fixed exchange rates, operating profit was up 13 percent compared to last year Volume increased by 5 percent The general market conditions were stable and we expect the business to remain stable during the next quarter. 11

12 Chocolate & Confectionery Fats SEK million Quarter, Chocolate & Confectionery Fats - Operating profit Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q Quarter Rolling 12 months Rolling 12 months s, SEK million SEK/kg Quarter, 240 2,40 2,20 2,00 1,80 1,60 1, ,20 1,00 0,80 0,60 0,40 0,20 0,00 Chocolate & Confectionery Fats - Operating profit per kg 240 2,40 2,20 2,00 1,80 1,60 1, ,20 1,00 0,80 0,60 0,40 0,20 0,00 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q Q1 07 Rolling 12 mon nths, SEK/kg Quarter Rolling 12 months 12

13 Technical Products & Feed Fourth quarter 2011 Operating profit was SEK 21 million (36) 42% Volumes in the fourth quarter 2011 decreased by 9 percent The reduced profitability in the business area during the fourth quarter was due to continued pressure on margins for fatty acids and in crushing The underlying trend in was still very challenging but slightly less challenging than in Q3. As earlier communicated, the next coming two quarters are still expected to be challenging but with a stable result Technical Products & Feed - Operating profit Quarter, SEK million Rolling 12 months, SEK mi illion 0 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q Quarter Rolling 12 months

14 Cash flow SEK million YTD 2011 YTD 2010 Cash flow from operating p g activities Change in working capital Cash flow from operating activities incl change in working capital Cash flow from investments Free cash flow Cash flow from operating activities in the fourth quarter amounted to SEK 210 million (289). The lower cash flow 2011 compared to corresponding quarter last year was due to increased paid tax. Changes in working capital was positive SEK 289 million (243) in the fourth quarter. Raw material prices have decreased since the beginning of This had a positive impact p p during g the fourth q quarter 2011 and it will most likely continue to have some positive effects during the first half of Cash flow year to date, after net investments of SEK 670 million illi (331) iincluding l di th the acquired i d AAK Louisville L i ill operation, was negative SEK 381 million (positive 426). 14

15 Raw material prices Raw material prices - Rapeseed and Palm RAPESEED PALM percent change in all raw material prices will effect working capital by +/-SEK 250 million Time lag of six to nine months 15 SEK/tonne jan-08 mar-08 maj-08 jul-08 sep-08 nov-08 jan-09 mar-09 maj-09 jul-09 sep-09 nov-09 jan-10 mar-10 maj-10 jul-10 sep-10 nov-10 jan-11 mar-11 maj-11 jul-11 sep-11 nov-11 jan-12

16 volume trends by region W. Europe C. Europe CIS 16

17 AAK Acceleration - Growth AAK Acceleration projects Bakery KPI s Dairy CCF Infant Nutrition Food Service Merger & Acquisition Fast-growing economies N.A. China Brazil Ahead of plan On plan Behind plan 17

18 AAK Acceleration - Efficiency AAK Acceleration projects Purchasing Productivity KPI s Ahead of plan On plan Behind plan 18

19 AAK Acceleration - People AAK Acceleration projects Sales Mobilize Ourselves Internal communication KPI s Ahead of plan On plan Behind plan 19

20 AAK Acceleration - Management Growth ambition* on track 2000 Acquisitions Organic Growth Productivity Operating profit 2010 CAGR 15 % ** 950 ** In appr 4-6 years * As expressed at the Capital Market Day November 10, 2010 and at fixed exchange rates. ** Rolling 12 months third quarter at fixed exchange rates 20

21 Concluding remarks from CEO The impact on our industry of the more difficult general economy in Europe is difficult to predict. However, with dramatic food price inflation in 2010 at least for now, behind us, AAK s customer value propositions for health and reduced d costs and the AAK Acceleration program, we remain prudently optimistic for the future mainly driven by the Food Ingredients business. 21

22 Questions & Answers 22

23 The first choice for value-added added vegetable oil solutions 23

24 Investor Relations Contacts Arne Frank Chief Executive Officer and President Phone: Anders Byström Chief Financial Officer Phone: Fredrik Nilsson Head of Investor Relations and Group Financiall Manager Phone: Mobile: E mail: fredrik.nilsson@aak.com Further Investor Relations material can be found at 24

25 Financial calendar Financial calendar May, 2012 Interim report for the first quarter May, 2012 Annual General Meeting 19 July, 2012 Interim report for the second quarter November, 2012 Interim report for the third quarter November 2012 Capital Market Day in Stockholm 21 November 2012 Capital Market Day in Copenhagen 25

26 Cocoa Butter Cocoa Butter price development SEK/ton nne

27 Raw material price development Raw material price Rapeseed Palm SEK/tonne