Financial update A strong financial foundation Volum es ( '0 0 0 - PowerPoint PPT Presentation

Fredrik Nilsson CFO Financial update

A strong financial foundation Volum es ( '0 0 0 MT) EBI T ( SEK m illion) 1,700 1,200 1,600 1,100 1,620 1,117 1,500 1,000 1,511 996 1,400 900 1,441 1,426 911 1,300 800 824 1,200 700 1,100 600 1,000 500 900 400 2010 2011 2012 2013 2010 2011 2012 2013 ROCE ( R1 2 M) 17% 16% 16% 15% 14% 14% 13% 13% 13% 12% 11% 10% 9% 2010 2011 2012 2013 2

EPS and DPS evolution 20.0 + 14% + 6% 17.9 15.0 15.7 14.7 10.0 + 14% + 11% 5.0 6.00 5.25 4.75 0.0 2011 2012 2013 EPS (SEK) DPS (SEK) 3

Seasonality* AAK Group 35% 30% 2 9 % 25% 2 8 % 20% 2 2 % 2 1 % 15% 10% 5% 0% Q1 Q2 Q3 Q4 * Average EBIT, 2010-2013 4

Seasonality* Food I ngredients 35% 30% 3 0 % 25% 2 7 % 20% 2 3 % 2 0 % 15% 10% 5% 0% Q1 Q2 Q3 Q4 Chocolate & Confectionery Fats 35% 30% 3 0 % 2 9 % 25% 20% 2 3 % 15% 1 8 % 10% 5% 0% Q1 Q2 Q3 Q4 * Average EBIT, 2010-2013 5

Quarterly trends 2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 4 YTD YTD Q3 Q2 Q1 Volum es + 4 % + 6 % + 2 % + 3 % 1,241 (1,196) ’0 0 0 MT -2 % -3 % -2 % -1 % organic volume growth EBI T* 899 (799) SEK + 1 3 % + 6 % + 1 5 % + 1 9 % m illion EPS 14.03 (12.39) + 1 3 % + 1 0 % + 1 1 % + 2 1 % SEK * Excluding acquisition costs and non-recurring items 6

Raw material prices 1,800 Rapeseed oil Palm oil 1,600 1,400 1,200 1,000 USD/ ton 800 600 400 200 0  10 percent change in all raw material prices will effect working capital by + / - SEK 250 million  Time lag of six to nine months 7

Cash flow Full Q3 YTD Q3 YTD SEK m illion year 2 0 1 4 2 0 1 4 2 0 1 3 2 0 1 3 2 0 1 3 EBITDA 442 1,185 390 1,049 1,460 Paid interest -96 -29 -90 -27 -80 Paid tax -261 -100 -239 -55 -209 Non-cash items -20 4 -15 7 -3 Change in working capital (WC) -369 -644 -12 335 217 Cash flow from operating -5 2 1 9 7 3 0 3 1 ,0 9 2 1 ,3 0 0 activities incl. change in W C Cash flow from investments -352 -661 -329 -589 -732 Free cash flow -4 0 4 -4 6 4 -2 6 5 0 3 5 6 8 8

Cash flow Q3 YTD SEK m illion Sept Sept Full 2 0 1 4 2 0 1 4 Q3 Q3 SEK m illion YTD YTD year 2 0 1 4 2 0 1 3 Inventory 2 0 1 4 -234 2 0 1 3 -674 2 0 1 3 EBITDA AR 442 1,185 390 -256 1,049 -337 1,460 AP 122 361 Paid interest -96 -29 -90 -27 -80 Other -1 6 Paid tax -261 -100 -239 -55 -209 Non-cash items -20 4 -15 7 -3 Change in working capital (WC) -369 -644 -12 335 217 Cash flow from operating -5 2 1 9 7 3 0 3 1 ,0 9 2 1 ,3 0 0 activities incl. change in W C Cash flow from investments -352 -661 -329 -589 -732 Free cash flow -4 0 4 -4 6 4 -2 6 5 0 3 5 6 8 9

Cash conversion rate 2,000 200% 160% 1,800 160% 119% 1,600 120% 82% Avg: 1 0 1 % 1,563 1,400 80% 33% 1,200 1,334 40% 1,000 0% 800 -40% 600 -80% 725 400 -120% 200 -160% 301 0 -200% 2010 2011 2012 2013 Operating cash f low* Cash conversion rate * EBIT + change in working capital 10

Cash conversion rate 2,000 200% 160% 122% 1,500 120% 71% 80% 45% Avg: 6 0 % 1,193 1,000 40% -5% 0% 797 500 -40% -80% 394 0 -120% -48 -160% -500 -200% 2010 2011 2012 2013 Operating cash f low* Cash conversion rate * EBIT + change in working capital + regular CAPEX 11

ROCE – September 30, 2014 Quarter Q3 2 0 1 4 Q3 2 0 1 3 FY 2 0 1 3 EBIT (R12M) 1,231 1,060 1,117 Fixed assets 5,223 4,285 4,427 18% Working capital 3,406 2,481 2,581 ROCE 14.3 15.7 15.9 16% 14% 12% 10% 8% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 12 Rolling 12 m onths Quarter

Capital structure 4 7 % 100% 50% 4 5 % 90% 4 1 % 45% 8 8 % 80% 40% 3 4 % 8 3 % 70% 35% 6 9 % 60% 30% 50% 25% 5 2 % 40% 20% 4 3 % 3 9 % 30% 15% 3 6 % 3 4 % 20% 10% 10% 5% 0% 0% 2010 2011 2012 2013 Equity/ total assets (% ) Gearing, net debt/ equity (% ) Net debt/ total capital (% ) 13

Net debt / EBITDA 4,000 3.00 3,500 2.50 3,000 Net debt, SEK m illion Net debt/ EBITDA 2.00 2,500 2,000 1.50 1,500 1.00 1,000 0.50 500 0 0.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14

Debt maturity Lender/ Facility 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 Revolving credit facility with four banks (EUR 400 million) Multi-option facility Bank A (SEK 750 million) Multi-option facility Bank B (SEK 750 million) Mortgage loan Bank A (DKK 400 million) 15

Investing to grow (SEK million) 1,200 1,200 1,000 1,000 1,000 800 800 600 700 600 550 536 400 400 424 370 349 332 321 200 200 252 196 0 0 0 0 0 2010 2011 2012 2013 E2014 E2015* E2016* 2010 2011 2012 2013 E2014 E2015* E2016* CAPEX Acquisitions 1,200 1,000 1,000 800 794 802 732 600 700 670 400 332 200 0 2010 2011 2012 2013 E2014 E2015* E2016* Total CAPEX * Including Brazil and China greenfields 16

Volume growth from acquisitions and greenfields (’000 MT) 450 400 350 300 China 250 Brazil 200 Colom bia 150 100 Belgium 50 Turkey 0 FY 2014 2015 FY 2015 2016 FY 2016 2017 FY 2017 17

Key messages from the Group CFO  AAK’s ambition is to grow and we have the cash flow and funding to do it  Strengthen growth • Organic growth ‒ Customer co-development ‒ Emerging markets • Selective acquisitions  Capital efficiency • Working capital management 18