Annual General Meeting May 15, 2019 The Co-Development Company We - PowerPoint PPT Presentation

Johan Westman President and CEO Annual General Meeting May 15, 2019 The Co-Development Company

We are AAK – The Co-Development Company 3,700 More than Talented Employees 20 Production More than and Customization plants 25 Sales offices 100 Sales in countries Global footprint Leading positions The Co-Development Company

A business model focused on collaboration, value and growth >140 years of experience within oils & fats Value-adding vegetable oil solutions Expertise in lipid technology within foods and special nutrition applications Wide range of raw materials Broad process capabilities – develops innovative and value-adding solution across many industries Unique Co-Development approach in close collaboration with our customers The Co-Development Company

Three business areas Food Ingredients Chocolate & Confectionery Fats Technical Products & Feed Largest business area Market leader within functional cocoa Fatty acids and glycerine butter alternatives Strong organic growth Proteins and fats for animal feed Speciality fats for confectionery fillings Solutions to the bakery, dairy, foodservice and special nutrition industries The Co-Development Company

Management ambition Innovation Organic & growth Product Mix Average 10% year-over-year EBIT improvement* & Supporting a good and consistent Strategic EPS improvement Efficiency acquisitions *Excluding acquisitions and at fixed FX The Co-Development Company

2018 in brief Highlights Key Ratios Operating profit increased 2018 by 10%, in line with our Volume Operating profit management ambition SEK 1,956 million 2,239,000 MT 8 th consecutive year with record-high operating (+10%) (+5%) profit Record-high operating profit for all business Operating profit areas ROCE per kilo Within Chocolate & 15.8% Confectionery Fats, SEK 0.87 demand for some high- (+4%) end products has been greater than our capacity Dividend +11% The Co-Development Company

Milestones 2018 100 years anniversary New Customer Innovation Centers Bild kommer läggas till Mexico Singapore Hull, UK Runcorn , UK MTN program New Customization Plant GCC region Sweden Philippines Dubai The Co-Development Company

Consistent EPS growth drives consistent dividends Earnings per share Dividends per share 5,33 1,85 5,21 4,71 1,63 10% 11% 1,46 3,95 3,70 1,29 3,53 1,13 2,98 1,00 2,62 0,88 2,45 2,36 0,79 0,75 0,71 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019** Dividend policy – payout ratio of 30-50% of net profit Proposed dividend in 2019 SEK 1.85 per share = * Rolling 12 months 36% of net profit ** Board’s proposal 8 The Co-Development Company

Sustainable growth – fundamental for AAK Ranked among the 100 most sustainable corporations in the world. Our clients value our sustainability work. Continued progress on sustainability implementation and making a difference for smallholders. Continued progress on environmental efficiency. Developing and safeguarding our people. Making a difference within our local communities. The Co-Development Company

Global sustainability achievements 2018 The Co-Development Company

Sustainable sourcing of raw materials – important progress during the year The number of women engaged in our direct shea sourcing program Kolo Nafaso is more than 134,000 Together with Proforest, AAK conducted a risk assessment in 2018 for our coconut supply chains As for sustainable sourcing of palm oil, we continue our strong engagement to drive and ensure sustainability The Co-Development Company

Substantial contributions to the Sustainable Development Goals High contribution Medium contribution Low contribution The Co-Development Company

Q1 2019 – strong organic growth and strategic investments Highlights Key Ratios Food Ingredients 2019 Operating profit +14% Volume Operating profit* Dairy segment and Foodservices particularly SEK 509 million 572,000 MT strong +11% +4% All geographic markets showed good progress Chocolate & Confectionery Fats Operating profit Continued profit growth ROCE Continued strong demand per kilo for high-end solutions 15.4% SEK 0.89 Technical Products & Feed +7% Stable quarter following a very strong performance in 2018 *Excluding acquisition costs The Co-Development Company

MaasRefinery – to accelerate growth, strengthen the European supply chain and add operational capabilities Capacity is approximately 40,000 MT with room for expansion Port of Rotterdam Strategically located next to a deep-sea terminal in Rotterdam Established in 2009 and designed according to the latest process technology in order to maximize energy efficiency and minimize oil losses FSSC 22000 certified and compliant with Skal, Kosher, RSPO and GMP+ Strategic rationale Increase capacity to enable accelerated growth of our business in Europe Support existing European production footprint to optimize supply chain and save costs Strengthen capabilities and flexibility for the production of organic oils and fats The Co-Development Company

BD Foods – a good fit with our global foodservice expansion Produces tailor-made restaurant quality meal accompaniments including sauces, salsas, chutneys, vinaigrettes, infused oils and dressings Portfolio of over 3,000 products Wide range of customers including restaurants, hotels, airlines, wholesalers, and food manufacturers Located in St Leonards-on-Sea (near Hastings) Established in 2001 Strategic rationale Broad product and packaging offering including dip pots and hot filled products Extensive know-how in new product development and packaging design Customer-focused innovation The Co-Development Company 15 15/05/2019

Strong trends ensure our growth Trace- Better- Spår- Bättre barhet för dig for-you ability Natural/ Naturligt/ Social Sociala Organic organiskt Hälsa & media medier Trans-parens Health & Trans- välbefin-nande Wellbeing parency Ethical Etiskt levnads-sätt Living Just- Speciellt för for-me Sustainable mig Custom- Hållbart/ Kund-anpassad & Eco ization ekologiskt Plant- Växt-baserat Self based Personligt branding varumärke Premium- Convenience Bekväm-lighet Premium- ization ization? On- Indulg- Ta med the-go ence Flathet på vägen (Indulgence) Trading Food- e-com up Lagra service Mat-servering E-handel (trading up) The Co-Development Company

Even more plant-based foods The Co-Development Company

Our diets are changing FLEXITARIAN The Co-Development Company

Global Customer Survey ! We listen. We care. We act. The Co-Development Company

Mergers & Acquisitions Strategy New platforms for continued Geographic expansion / accelerated growth Capacity Vertical integration Technology and capabilities Adjacent product portfolios The Co-Development Company

Why invest in AAK? 1 2 3 Products in Non-cyclical Strong growth – proven line with business trends track record The Co-Development Company

We offer plant-based, healthy, high value-adding oils and fats solutions by using our customer co-development approach. In addition, we see favorable underlying trends in the food industry. Thus, we continue to remain prudently optimistic about the future. The Co-Development Company

www.aak.com The Co-Development Company