Interim Report Q1 2012 - AAK · Financial calendar Financial calendar 2012 15 May, 2012 Annual...
Transcript of Interim Report Q1 2012 - AAK · Financial calendar Financial calendar 2012 15 May, 2012 Annual...
Interim Report Q1 2012
Arne Frank CEO
Anders Byström
CFO
Fredrik Nilsson
Head of IR
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Agenda
First quarter 2012
Business Area information
AAK Acceleration
Other major events
Q & A
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First quarter 2012
Volumes growth of 7 percent.
Net sales in the first quarter increased to SEK 4,222 million (3,843).
A record high operating profit (EBIT), reached SEK 220 million (204), an improvement of 8 percent.
• Food Ingredients reached a record high first quarter of SEK 137 million (104), an improvement by 32 percent.
• Chocolate & Confectionery Fats was stable, SEK 81 million (81).
• Technical Products & Feed had another challenging quarter but reached SEK 25 million (39).
Operating profit per kilo continued to improve from SEK 0.59 to SEK 0.60.
As predicted we recorded a record high first quarter cash flow of SEK 384 million.
Earnings per share increased, from SEK 3.38 to SEK 3.43 despite higher interest costs.
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Focus the analysis on:
• Volume
• Operating profit
• Operating profit per kilo
• Return on Net Operating Assets
• Net Debt / EBITDA
Financial summary
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Financial summary
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First quarter 2012
A record high operating profit reached SEK 137 million (104), an increase of 32 percent
Operating profit per kilo continued to improve – by 17 percent from SEK 0.54 per kilo to 0.63 SEK per kilo
Volume increased by 12 percent
• Like for like +1 percent
Continued strong development in many speciality product areas, in particular:
• Bakery
• Dairy Fat Alternatives
• Infant Nutrition
We remain clearly optimistic for the future mainly driven by this business area
Food Ingredients
+32%
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AAK Louisville
AAK Louisville has now started to contribute to the Group result according to plan The AAK Louisville integration is continuing in line with plan
Operating profit per kilo in line with current group average from January 2012 The acquisition is reported in the Food Ingredients business area
First quarter 2012
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Food Ingredients
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Chocolate &Confectionery Fats
First quarter 2012
The operating result reached SEK 81 million (81)
Operating profit per kilo was also stable at SEK 1.03 (1.03)
Volumes as well remained stable during the quarter, also as earlier predicted
The continued record low cocoa butter price (minus approximately 30-40 percentage versus a three year average) represents a clear challenge for the business area in the short to medium term
The management for the business area have very professionally succeeded in diversifying the business by taking it more into a solutions approach
We expect the business area to remain approximately stable or somewhat challenged during the next quarters
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Technical Products & Feed
First quarter 2012
Operating profit was SEK 25 million (39)
Volumes decreased by 1 percent, which mainly was due to lower volumes of fatty acids
The underlying trend in the first quarter 2012 was still very challenging but slightly less challenging than during the third and fourth quarter 2011
As earlier communicated the next quarter/quarters will continue to be challenging but the situation is expected to gradually improve somewhat during the third and fourth quarter
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Strong cash flow
As predicted cash flow from operating activities incl change in working capital came in very strongly, SEK 384 million (negative 358)
• Positive cash flow from a reduction in working capital was SEK 139 million (negative 562)
Cash flow, after net investments of SEK 107 million (68) was SEK 277 million (negative 426)
SEK million Q1 2012
Q1 2011
Full Year 2011
Cash flow from operating activities 245 204 902
Change in working capital 139 -562 -613
Cash flow from operating activities incl change in working capital
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Cash flow from investments -107 -68 -670
Free cash flow 277 -426 -381
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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
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Increase 10-15%
-250 MSEK +250 MSEK
Working capital
Q4 2012/Q1 2013?? Mainly Q1 2012
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Q1 volume trends by region
C. Europe CIS
W. Europe
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Capacity expansion for Infant Nutrition
AAK expands capacity further for the production of InFat™ at the Karlshamn factory
• InFat™ is produced in an unique enzymatic inter- esterification process and has proven to be a very effective and appreciated addition to Infant Formulas
This product has been successfully introduced to the Infant Nutrition industry by Advanced Lipids, the Joint Venture, in this specific product/technology area, between AAK and Enzymotec
AAK opened the state of the art factory for the manufacturing of Infat™ in Karlshamn in 2008
The sales of the product has since then enjoyed a strong increase and the factory expansion will enable AAK to increase the production further to meet expectations for continued strong growth of InFat™ in the coming years
CSR in Western Africa
AAK triples its activities with women groups in Burkina Faso, Western Africa
• To ensure improved supply and quality of the strategically important shea kernels
• Improve living conditions locally in the villages
• The partnership based on the fair trade principles, ensuring the women a steady income and a bonus for delivering high-quality products, but without binding them to trading with AAK
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AAK Acceleration - Growth
AAK Acceleration projects KPI´s
Bakery
Dairy
CCF
Infant Nutrition
Food Service
Merger & Acquisition N.A.
Fast-growing economies
• China
• Brazil
Ahead of plan On plan
Slightly ahead of plan Behind plan
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AAK Acceleration - Efficiency
AAK Acceleration projects KPI´s
Purchasing
Productivity
Ahead of plan On plan
Slightly ahead of plan Behind plan
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AAK Acceleration - People
AAK Acceleration projects KPI´s
Sales
Mobilize Ourselves
Internal communication
Ahead of plan On plan
Slightly ahead of plan Behind plan
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Concluding remarks from CEO
The impact on our industry from the more difficult general economy in Europe is difficult to predict
However, based on AAK’s customer value propositions for:
• Health
• Reduced costs
• Customer product co development and solutions approach
• The AAK Acceleration program, Growth-Efficiency-People
We remain prudently optimistic for the future mainly driven by a very strong Food Ingredients business
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Questions & Answers
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The first choice
for value-added
vegetable oil
solutions
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Investor Relations Contacts
Arne Frank Chief Executive Officer and President Phone: +46 40 627 83 00
Anders Byström Chief Financial Officer Phone: +46 40 627 83 00
Fredrik Nilsson Head of Investor Relations and Group Financial Manager 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
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Financial calendar
Financial calendar 2012
15 May, 2012 Annual General Meeting
19 July, 2012 Interim report for the second quarter 2012
7 November, 2012 Interim report for the third quarter 2012
19 November, 2012 Capital Market Day in Stockholm
21 November, 2012 Capital Market Day in Copenhagen
7 February, 2013 Fourth quarter and full-year report 2012
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Cocoa Butter
SEK/tonne USD/tonne
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Group Financial Overview
Q1 2012
Q1 2011
% Change
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YTD 2011
366 343 +7% Volume (’000) 1 449 1 426
220 204 +8% Operating profit (EBIT) 927 911
0.60 0.59 +2% Operating profit per kilo 0.64 0.64
-24 -15 -60% Financial net -107 -98
141 139 +1% Net result 606 604
3.43 3.38 +1% Earnings per share (EPS) 14.77 14.72
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2010 In appr 4-6 years
CAGR 15 %
AAK Acceleration - Management Growth ambition* on track
* As expressed at the Capital Market Day November 10, 2010 and at fixed exchange rates. ** Rolling 12 months third quarter at fixed exchange rates
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