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AAK

Annual Report Feb 7, 2013

2874_10-k_2013-02-07_261d6831-b466-4ebf-84c5-5370764edec2.pdf

Annual Report

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AAK's Interim Report for the Fourth quarter and Year-end Report, 2012

Chief Executive´s comments

Record high operating profit driven by an extraordinary performance in Food Ingredients

Operating profit adjusted for hurricane Sandy ("Sandy")* reached a record high for the fourth quarter of SEK 292 million (265), an improvement of 10 percent compared to the corresponding quarter in 2011.

Operating profit per kilo adjusted for Sandy* amounted to SEK 0.74 (0.69), a significant improvement largely attributable to a continuing trend away from low margin commodity volumes. In addition, Food Ingredients had a very favourable product mix and unusually high production yields.

Business Area operating profit adjusted for Sandy*:

  • Food Ingredients reached a record high fourth quarter of SEK 220 million (151), an improvement of 46 percent
  • Chocolate & Confectionery Fats reported operating profit of SEK 82 million (115)
  • Technical Products & Feed reported stable profits at SEK 21 million (21)

Operating profit for the fourth quarter including Sandy* effects amounted to SEK 271 million (265), an improvement of 2 percent.

Earnings per share increased by 4 percent, from SEK 4.82 to SEK 5.01.

Sales amounted to SEK 4,205 million (4,483), reflecting lost sales related to Hurricane Sandy and lower raw material prices.

Continued very strong operational cash flow

Continuing strong cash flow in the fourth quarter amounted to SEK 439 million (499), including a reduction in working capital of SEK 112 million (289).

With the raw material price evolution during the second half of 2012, AAK will display a continuing reduction in working capital in the first half of 2013.

Increased dividend

The proposed dividend is SEK 5.25 (4.75) per share an increase of SEK 0.50 or 11 percent.

Business development

During the fourth quarter Group volume increased by 2 percent.

Food Ingredients continued to demonstrate very strong development, particularly in Bakery and Infant Nutrition, while commodity volumes in the UK continued to decline. Further, Scandinavia lost some low margin volumes. Chocolate & Confectionery Fats continued as expected to be challenged and Technical Products & Feed stabilized.

Hurricane Sandy ("Sandy")*

The AAK plants in New Jersey, US which were affected by Hurricane Sandy are back in operation. Sandy* negatively impacted operating profit in the fourth quarter by estimated SEK 21 million.

AAK Acceleration and recent acquisitions

We continue to see positive effects of the AAK Acceleration program (Growth-Efficiency-People). Recent acquisitions are developing in line with plans.

Chief Executive´s comments continued…

Concluding remarks

The impact on our industry from the more difficult general economy in Europe is, as we all know, really difficult to predict. However, based on AAK's customer value propositions for health and reduced costs, our customer product co-development and solutions approach, and the AAK Acceleration program, we continue to remain prudently

optimistic for the future. The main drivers are expected to be our strong Food Ingredients business and the expected recovery in our Chocolate & Confectionary Fats business.

The performance of the Chocolate & Confectionary Fats business is expected to stabilize in the first part of 2013 and, provided the cocoa butter price remains at the current more normal level – see page 19 - it is expected to start improving significantly during the second half of 2013.

Arne Frank CEO and President

Financial overview

Q4 Q4 Full year Full year
SEK Million 2012 2011 % 2012 2011 %
Volumes (000 MT) * 394 385 +2 1,511 1,426 +6
Net Sales 4,205 4,483 -6 16,911 16,695 +1
Adjusted Operating profit* 292 265 +10 1 ,003 918** +9
Adjusted Operating profit
per kilo *
0.74 0.69 +7 0.66 0.64 +3
Operating profit 271 265 +2 975 911 +7
Net profit 206 197 +5 647 604 +7
Earnings per share 5.01 4.82 +4 15.66 14.72 +6
Net debt 2,521 3,141 -20 2,521 3,141 -20

* Hurricane Sandy ("Sandy") had a negative impact on operating profit in the fourth quarter by an estimated SEK 21 million affecting Food Ingredients by SEK 6 million, Chocolate & Confectionary Fats by SEK 5 million and Group Functions by SEK 10 million. All volumes in this report have been adjusted to include lost shipments covered by insurance compensation. See further page 9 and page 16. The full year also includes SEK 7 million acquisition related costs incurred in the second quarter 2012.

** During 2011 the acquisition related costs amounted to SEK 7 million which was recorded in the third quarter 2011.

The AAK Group, fourth quarter 2012*

Volume

Volume increased by 2 percent compared to fourth quarter 2011 mainly due to acquisitions and increasing semi-speciality and speciality volumes, partly offset by lower commodity volumes.

Net sales

Net sales decreased by SEK 278 million mainly due to Sandy* and lower raw material prices. The impact of currency translation amounted to negative SEK 23 million.

Operating result

Operating profit adjusted for Sandy* for the fourth quarter was a record high, reaching SEK 292 million (265), an improvement of 10 percent.

Operating profit for the fourth quarter amounted to SEK 271 million (265), an improvement of 2 percent. The impact of currency translation was negligible.

Operating profit per kilo adjusted for Sandy* improved significantly from SEK 0.69 to SEK 0.74 per kilo, an improvement by 7 percent. Food Ingredients showed a very strong improvement mainly due to strong development in Bakery and Infant Nutrition combined with another quarter

of a very favourable product mix and exceptionally high production yields, while Chocolate & Confectionary Fats remained challenged and showed a decrease in operating profit per kilo. Technical Products & Feed remained stable.

Net financial cost

The net financial cost amounted to SEK 22 million (negative 1). In 2011 the fourth quarter was affected positively by financial income of a non-recurring nature related to the settlement of financial derivatives.

Taxes

Income tax (deferred) in the fourth quarter was affected by a positive one time effect amounting to SEK 20 million due to the corporate tax rate in Sweden being reduced from 26.3 percent to 22 percent. The reduction in corporate tax rate in Sweden is not expected to have any material impact on AAK's future average tax rate.

Cash flow and Investments

Cash flow from operating activities excluding changes in working capital amounted to SEK 327 million (210). Further, a positive cash flow was achieved through continued reduction in working capital by

SEK 112 million (289) in the fourth quarter.

Cash flow from operating activities including changes in working capital was positive SEK 439 million (499).

After net investments amounting to SEK 99 million (97), cash flow was positive SEK 340 million (402).

Financial position

The equity/assets ratio amounted to 40 percent (36 percent at 31 December 2011). Net debt at 31 December 2012 amounted to SEK 2,521 million (SEK 3,141 million on 31 December 2011). At 31 December 2012, the Group had total credit facilities of approximately SEK 5,599 million.

Employees

The average number of employees at 31 December 2012 was 2,211 (2,065 on 31 December 2011).The net change consists of a reduction in Scandinavia and the UK, in line with the continuing productivity improvement programs, offset by increases in focused growth markets and by recent acquisitions.

*Hurricane Sandy ("Sandy") had a negative impact on operating profit in the fourth quarter by an estimated SEK 21 million affecting Food Ingredients by SEK 6 million, Chocolate & Confectionary Fats by SEK 5 million and Group Functions by SEK 10 million. All volumes in this report have been adjusted to include lost shipments covered by insurance compensation. See further page 9 and page 16. The full year also includes SEK 7 million acquisition related costs incurred in the second quarter 2012.

Group – Q4 2012

Net Debt/EBITDA

4,00 4,50 5,00

*Excluding acquisition related costs and Sandy adjusted

The AAK Group, full year 2012*

Volume

Volume increased by 6 percent compared to 2011 mainly due to acquisitions, increases in semi-speciality and speciality products and continued reduction in commodity volumes, mainly in the UK but also in Scandinavia.

Net sales

Net sales increased by SEK 216 million mainly due to acquisitions, better product mix and the positive impact of currency translation of SEK 97 million.

Operating result

Operating profit adjusted for Sandy* and before acquisition related costs reached a record high of SEK 1,003 million (918), an improvement of 9 percent. The impact of currency translation was negligible.

Operating profit after acquisition related costs reached SEK 975 million (911), an improvement of 7 percent.

Net financial cost

Net financial cost of SEK 109 million (98) was higher than last year. Last year the fourth quarter was affected positively by financial income of a nonrecurring nature related to the settlement of financial derivatives.

Taxes

Income tax (deferred) in the fourth quarter was affected by a positive one time effect

amounting to SEK 20 million due to the corporate tax rate in Sweden being reduced from 26.3 percent to 22 percent.

Cash flow

Cash flow after changes in working capital for the full year of 2012 reached a record high of SEK 1,539 million (289), including improvements in working capital of SEK 589 million (negative 613).

With the raw material price evolution during the second half of 2012, a continued reduction in working capital is expected in the first half of 2013.

Recent acquisition of Oasis Foods Company

During the second quarter of 2012 AAK strengthened its position in the North American Food Service market by acquiring Oasis Foods Company (Oasis).

Oasis provides an expansive variety of quality products such as edible oils, margarine, spreads, shortenings, vinegars, mayonnaise and sauces.

Founded in 1975 Oasis employed approximately 160 people at Hillside, New Jersey, USA and had revenues of approximately SEK 925 million in 2011.

Oasis is a well-run company and it represents an excellent platform for our North American ambitions. The company´s wide variety of established Food Service products and brands significantly broadens AAK's product offerings in one of the largest food service markets in the world. The New Jersey location close to our Port Newark plant provides easy access to some of the largest population centres in the country.

Recent acquisition of Crown-Foods A/S

During the second quarter of 2012 AAK also strengthened its position in the Scandinavian Food Service market by acquiring Crown-Foods A/S in Denmark (Crown).

The acquisition will strengthen AAK's ability to supply a broad portfolio of Food Service products to Scandinavian customers.

Crown is a local market leader producing sauces and dressings. Founded in 1988 and located in Mørkøv, Denmark, Crown employed approximately 20 people and had a turnover of approximately SEK 60 million in 2011.

*Hurricane Sandy ("Sandy") had a negative impact on operating profit in the fourth quarter by an estimated SEK 21 million affecting Food Ingredients by SEK 6 million, Chocolate & Confectionary Fats by SEK 5 million and Group Functions by SEK 10 million. All volumes in this report have been adjusted to include lost shipments covered by insurance compensation. See further page 9 and page 16. The full year also includes SEK 7 million acquisition related costs incurred in the second quarter 2012.

Business Area Food Ingredients, Q4 2012*

Q4 Q4 Full year Full year
SEK Million 2012 2011 % 2012 2011 %
Volumes ('000 MT) * 248 234 +6 937 831 +13
Net sales 2,648 2,786 -5 10,729 10,076 +7
Adj.Operating profit * 220 151 +46 703 518 +36
Adj.Operating profit per kilo* 0.89 0.65 +37 0.75 0.62 +21

Volume

Food Ingredients reported a volume growth of 6 percent compared to the corresponding quarter in 2011, attributable mainly to acquired businesses, increases in semi-speciality and speciality products offset by a further drop in commodity volumes in the UK and in Scandinavia. The quarter also suffered from a significantly shorter operational December compared to 2011. For comparable units volume decreased by 8 percent.

Net sales

Net sales decreased by SEK 138 million mainly as a consequence of lost sales related to Sandy*. In addition, raw material prices were lower, partly offset by acquired business. The currency

translation impact was negative SEK 1 million.

Acquisitions

The integration of the recent acquisitions, Oasis and Crown, is progressing according to plan.

Operating result

Operating profit adjusted for Sandy was a record high, reaching SEK 220 million (151), an increase of 46 percent. The impact of currency translation was negligible. This extraordinarily high operating profit is the result of a well received and well executed strategy as well as a favourable product mix and production efficiency, above our expectations, going forward.

The quarter continued the trend of strong development, in particular within Bakery and Infant Nutrition.

Operating profit per kilo adjusted for Sandy* improved substantially, by 37 percent from SEK 0.65 per kilo to SEK 0.89 per kilo.

Operating profit amounted to SEK 214 million (151).

The performance of the business area has exceeded our expectations all through the year.

While we remain optimistic for the future, we expect the rate of operating profit improvement in 2013 to be lower than during 2012, albeit still double digits.

*Hurricane Sandy ("Sandy") had a negative impact on operating profit in the fourth quarter by an estimated SEK 21 million affecting Food Ingredients by SEK 6 million, Chocolate & Confectionary Fats by SEK 5 million and Group Functions by SEK 10 million. All volumes in this report have been adjusted to include lost shipments covered by insurance compensation. See further page 9 and page 16.

Business Area Chocolate & Confectionery Fats, Q4 2012*

Q4 Q4 Full year Full year
SEK Million 2012 2011 % 2012 2011 %
Volumes ('000 MT) * 79 83 -5 309 320 -3
Net sales 1,135 1,297 -12 4,583 4,954 -8
Adj.Operating profit* 82 115 -29 316 378 -16
Adj.Operating profit per kilo* 1.04 1.39 -25 1.02 1.18 -14

Volume

Total volume declined by 5 percent mainly as a result of very low prices on cocoa butter in 2011 and the first three quarters of 2012, affecting sales of speciality and semispeciality products.

Net sales

Net sales for Chocolate & Confectionary Fats decreased by SEK 162 million mainly as a consequence of lost volumes and lost sales related to Sandy*. Further, price pressure and an unfavourable currency translation impact of SEK 21 million affected sales.

Operating result

As earlier communicated this business area continues to be very challenged by the market conditions and the pressure on Cocoa Butter Equivalent (CBE). Operating profit adjusted for Sandy* amounted to SEK 82 million (115). The impact of currency translation was negligible.

Operating profit per kilo adjusted for Sandy* at SEK 1.04 per kg (1.39) was down, mainly due to decrease in volumes and product mix.

Operating profit amounted to SEK 77 million (115).

The performance of the business area is expected to stabilize in the first part of 2013 and, provided the cocoa butter price remains at the current more normal level – see page 19 - it is expected to start improving significantly during the second half of 2013.

*Hurricane Sandy ("Sandy") had a negative impact on operating profit in the fourth quarter by an estimated SEK 21 million affecting Food Ingredients by SEK 6 million, Chocolate & Confectionary Fats by SEK 5 million and Group Functions by SEK 10 million. All volumes in this report have been adjusted to include lost shipments covered by insurance compensation. See further page 9 and page 16.

Business Area Technical Products & Feed, Q4 2012

Q4 Q4 Full year Full year
SEK Million 2012 2011 % 2012 2011 %
Volumes ('000 MT) 67 68 -1 265 275 -4
Net sales 422 400 +6 1,599 1,665 -4
Operating profit 21 21 +0 88 103 -15
Operating profit per kilo 0.31 0.31 +0 0.33 0.37 -11

Volume

Volumes decreased by 1 percent compared to the corresponding quarter in 2011.

Net sales

Net sales for the business area increased by SEK 22 million or by 6 percent.

Operating result

Operating profit of SEK 21 million (21) remained stable despite the challenging business climate affecting this business area.

The next quarters will continue to be challenging, and profitability is expected to slowly improve.

Technical Products & Feed - Operating profit per kilo

General information

Related parties

No significant changes have taken place in relations or transactions with related parties since 2011.

Hurricane Sandy and insurance compensation

As communicated in a separate press release on October 31, 2012, AAK's two plants in the New Jersey area were temporarily shut down on October 29, 2012 due to Hurricane Sandy. No employees were injured at either of the plants.

The Oasis Foods plant was back in production on November 5, 2012.

The plant in Port Newark was back in production (reduced capacity) on November 26, 2012 and was by the end of the year back at almost full capacity.

AAK has insurance cover for property damage and business interruption.

During the fourth quarter the negative impact on operating profit of Sandy* was estimated to amount to SEK 21 million, representing among other things estimated self deductible amounts and qualifying periods. Food Ingredients was affected by an estimated SEK 6 million, Chocolate & Confectionery Fats by SEK 5 million and Group Functions by SEK 10 million.

The recognized insurance claim reported under "Other income" in the Income statement, was received subsequent to the year-end.

Reported volumes have been adjusted for lost shipments to reflect the normalized operations.

Additional insurance claims will be made during 2013.

AAK has a business interruption insurance coverage for 24 months and therefore it is not likely that the insurance settlement will be finalized until after the fiscal year 2013.

Risk and uncertainty factors

AAK is a global company represented in many countries and as such is exposed to a number of commercial and financial risks. Accordingly, risk management is an important process for AAK in its work to achieve established targets.

Efficient risk management is an ongoing process conducted within the framework of business control, and is part of the ongoing review of operations and forward-looking assessment of operations.

AAK's long-term risk exposure is assumed not to deviate from the inherent exposure associated with AAK's ongoing business operations.

For a more in-depth analysis of risks, refer to AAK's Annual Report for 2011.

Accounting principles in 2012

This interim report is prepared in accordance with the Swedish Annual Accounts Act and IAS 34, Interim Financial Reporting. For information regarding the accounting policies applied, see the 2011 Annual Report. The accounting policies are unchanged, compared with those applied in 2011.

Definitions

For definitions see the 2011 Annual Report.

Nomination Committee

At the 2012 Annual General Meeting, Mikael Ekdahl (BNS Holding), Carl Bek-Nielsen (BNS Holding), Henrik Didner, (Didner & Gerge fonder), Åsa Nisell (Swedbank Robur Fonder) and Lars-Åke Bokenberger (AMF Fonder), were elected members of the Nomination Committee in respect of the Annual General Meeting 2013. Mikael Ekdahl was elected chairman of the Nomination Committee.

Annual General meeting

The Annual General Meeting will be held on May 3, 2013 at 14.00 CET in Malmö, Sweden (Europaporten). The Annual Report for 2012 is expected to be distributed to the shareholders during the week starting April 8, 2013 and will at that time also be available on AAK's website and at its head office.

Shareholders who wish to participate at the Annual General Meeting must be registered in the share register maintained by Euroclear Sweden AB on Friday April 26 2013. To be eligible to participate in the Annual General Meeting, shareholders with nominee-registered holdings should temporarily reregister their shares in their own names through the agency of their nominees so that they are recorded in the share register in good time before Friday April 26, 2013. Notification of attendance should be made to AAK's head office no later than 16:00 CET on Friday April 26, 2013.

Proposed dividend

The Board of Directors and the CEO propose that a dividend of SEK 5.25 (4.75) per share be paid for the financial year 2012. The proposed recording day for the dividend is May 8, 2013. It is expected that the dividend will reach the shareholders on May 14, 2013.

The Parent Company and Group Functions

The Parent Company is a holding company for the AAK Group. Its functions are primarily activities related to the development and administration of the Group.

The Parent Company's invoiced sales during the full year 2012 were SEK 50 million (47). The result for the Parent Company after financial items amounted to SEK 120 million (111).

Interest-bearing liabilities minus cash and cash equivalents and interest-bearing assets totalled negative SEK 626 million (positive 101 as at 31 December 2011). Investments in intangible and tangible

assets amounted to SEK 0 million (0).

The Parent Company's balance sheet and income statement are shown on pages 17-18.

Accounting policies

AarhusKarlshamn AB (publ) is the Parent Company of the AAK Group. The company has prepared its financial reports in accordance with the Annual Accounts Act and RFR 2 Reporting for legal entities.

Malmö, February 7, 2013

Märit Beckeman Harald Sauthoff Ulrik Svensson Board member Board member Board member

Arne Frank Annika Westerlund Leif Håkansson Chief Executive Officer Trade union Trade union and President representative representative

Melker Schörling Carl Bek-Nielsen Martin Bek-Nielsen Mikael Ekdahl Chairman of the Board Vice Chairman Board member Board member

The information is that which AarhusKarlshamn AB (publ) is obliged to publish under the provisions of the Stock Exchange and Clearing Operations Act and/or the Trading in Financial Instruments Act. The information was released to the media for publication on February 7, 2013 at 08.15 am CET.

Report of Review of Interim Financial Information

We have reviewed this report for the period 1 January 2012 to 31 December 2012 for AarhusKarlshamn AB (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing in Sweden, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, February 7, 2013 PricewaterhouseCoopers AB

Anders Lundin Authorised Public Accountant Lead Auditor

AAK Group - Consolidated income statement

Q4 Q4 Full year Full year
SEK Million 2012 2011 2012
Q 4
2011
Q 4
Net sales 4,205 4,483 16,911 16,695
Other operating income *) 71 16 108 106
Total operating income 4,276 4,499 17,019 16,801
Raw materials and supplies -3,309 -3,580 -13,388 -13,350
Other external expenses -325 -305 -1,173 -1,077
Cost for remuneration to employees -279 -262 -1,119 -1,099
Amortisation and impairment losses -86 -81 -347 -350
Other operating expenses -6 -6 -17 -11
Total operating costs -4,005 -4,234 -16,044 -15,887
Operating result (EBIT) 271 265 975 914
Interest income 2 2 8 6
Interest expense -22 -28 -102 -94
Other financial items -2 25 -15 -10
Total financial net -22 -1 -109 -98
Result before tax 249 264 866 816
Income tax -43 -67 -219 -212
Net result 206 197 647 604
Attributable to non-controlling 1 0 7 2
interests
Attributable to the Parent company´s
205 197 640 602

AAK Group – Comprehensive income

Q4 Q4 Full year Full year
SEK Million 2012 2011 2012
Q 4
2011
Q 4
Full year
Income for the period 206 197 647 604
Exchange differences on translation 0 -50 -98 -35
of foreign operations
Fair value changes in cash flow -0 -19 -13 -19
hedges
Tax related to fair value changes in 0 5 3 5
cash flow hedges
Total comprehensive income for 206 133 539 555
the period
Attributable to non-controlling 0 -1 6 -1
interests
Attributable to the Parent company´s 206 134 533 556
shareholders

*) include insurance compensation related to Hurricane Sandy.

AAK Group – Condensed balance sheet

SEK Million 31.12.2012 31.12.2011
Assets
Goodwill 1,045 733
Other intangible assets 87 94
Tangible assets 2,800 2,801
Financial assets 135 144
Total non-current assets 4,067 3,772
Inventory 2,583 2,884
Current receivables 2,780 2,987
Cash and cash equivalents 330 331
Total current assets 5,693 6,202
Total assets 9,760 9,974
Equity and liabilities
Shareholders´equity 3,899 3,547
Non-controlling interests 24 18
Total equity including non
controlling interests 3,923 3,565
Total non-current liabilities 3,170 3,799
Accounts payable 1,480 1,331
Other current liabilities 1,187 1,279
Total current liabilities 2,667 2,610
Total equity and liabilities 9,760 9,974

No changes have arisen in contingent liabilities.

AAK Group – Change in equity

Total equity
Total Non incl. non
equity controlling controlling
SEK Million capital interests Q 4
interests
Openings equity 1 January 2012 3,547 18 3,565
Profit for the period 640 7 647
Other comprehensive income -107 -1 -108
Total comprehensive income 4,080 24 4,104
Stock options 13 - 13
Dividend -194 - -194
Closing equity 31 December 2012 3,899 24 3,923
SEK Million Total
equity
capital
Non
controlling
interests
Total equity
incl. non
controlling
Q 4
interests
Openings equity 1 January 2011 3,164 24 3,188
Profit for the period 602 2 604
Other comprehensive income -46 -3 -49
Total comprehensive income 3,720 23 3,743
Redemption non-controlling interest
Stock options
Dividend
-
11
-184
-5
-
-
-5
11
-184
Closing equity 31 December 2011 3,547 18 3,565

AAK Group – Cash flow statement

Q4 Q4 Full year Full year
SEK Million 2012
Q 4
2011 Q 4
2012
Full year
2011
Full yea
Operating activities
Cash flow from operating activities before changes in 327 210 950 902
working capital
Changes in working capital 112 289 589 -613
Cash flow from operating activities 439 499 1,539 289
Investing activities
Cash flow from investing activities -99 -97 -794 -670
Cash flow after investing activities 340 402 745 -381
Financing activities
Cash flow from financing activities -306 -322 -730 183
Cash flow for the period 34 80 15 -198
Cash and cash equivalents at start of period 294 253 331 540
Exchange rate difference for cash equivalents 2 -2 -16 -11
Cash and cash equivalents at end of period 330 331 330 331

AAK Group – Share data

Q4 Q4 Full year Full year
SEK Million 2012 2011 2012 2011
Number of shares, thousand 40,898 40,898 40,898 40,898
Earnings per share, SEK* 5.01 4.82 15.66 14.72
Earnings per share incl dilution, SEK** 4.97 - 15.56 -
Earnings per share incl full dilution, SEK*** 4.85 - 15.18 -
Equity per share, SEK 95.32 86.72 95.32 86.72
Market value on closing date 276.00 199.50 276.00 199.50

* The calculation of earnings per share is based on weighted average number of outstanding shares. ** The calculation of earnings per share is based on weighted average number of outstanding shares including dilution from outstanding subscription options (in accordance with IAS 33).

*** Earnings per share after full dilution is calculated by dividing net income for the period by the total number of average outstanding shares for the period including a conversion of all outstanding share options to ordinary shares.

Quarterly data – Business areas

Operating profit

2011 2012
Full Full
SEK Million Q1 Q2 Q3 Q4 year
Q 4
Q1 Q 4
Q2
Full year
Q3
Full yea
Q4
year
Food Ingredients 104 120 143 151 518 137 156 190 220 703
Chocolate & Confectionery 81 70 112 115 378 81 65 88 82 316
Fats
Technical Products & Feed 39 28 15 21 103 25 20 22 21 88
Group Functions -20 -22 -24 -22 -88 -23 -30 -27 -31 -111
Total AAK Group 204 196 246 265 911 220 211 273 292 996
Non-recurring items:
Insurance settlement - 48 - - 48 - - - - -
Restructuring cost - -45 - - -45 - - - - -
Impact related to Sandy* - - - - - - - - -21 -21
Total legal operating profit 204 199 246 265 914 220 211 273 271 975
AAK Group
Financial net -15 -30 -52 -1 -98 -24 -31 -32 -22 -109
Result before tax 189 169 194 264 816 196 180 241 249 866

*See page 9

Parent company - Income statement

Full year Full year
SEK Million 2012 2011
Net sales 50 47
Other operating income 5 4
Total operating income 55 51
Other external expenses -72 -55
Cost for remuneration to employees -47 -36
Amortisation and impairment losses -1 -2
Other operating expenses 0 0
Total operating expenses -120 -93
Operating result (EBIT) -65 -42
Income from shares in group
companies 185 149
Interest income 156 164
Interest expense -156 -160
Other financial items 0 -
Total financial net 185 153
Result before tax 120 111
Income tax -4 -3
Net result 116 108

Parent company – Comprehensive income

Full year Full year
SEK Million 2012 2011
Net result for the period 116 108
Other comprehensive income - -
Total comprehensive income for
the period 116 108

Parent company – Condensed balance sheet

SEK Million 31.12.2012 31.12.2011
Assets
Other intangible assets 1 1
Tangible assets 2 3
Financial assets 7,060 7,055
Total non-current assets 7,063 7,059
Current receivables 134 35
Cash and cash equivalents 0 0
Total current assets 134 35
Total assets 7,197 7,094
Equity and liabilities
Shareholders' equity 4,020 4,098
Total equity 4,020 4,098
Total non-current liabilities 2,500 2,900
Accounts payable 12 14
Other current liabilities 665 82
Total current liabilities 677 96
Total equity and liabilities 7,197 7,094

Raw material price trends

Palm and Rapeseed Cocoa Butter

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

AAK in brief

AarhusKarlshamn is one of the world's leading producers of high value-added speciality vegetable fats. These fats are characterized by a high technological content and are used as substitute for butter-fat and cocoa butter, transfree solutions for fillings in chocolate and confectionery products, and in the cosmetics industry. AarhusKarlshamn has production facilities in Denmark, Mexico, the Netherlands, Sweden, Great Britain, Uruguay and the US. The company is organised in three Business Areas; Food Ingredients, Chocolate & Confectionery Fats and Technical Products & Feed. Further information on AarhusKarlshamn can be found on the company's website www.aak.com.

Press and analyst conference

In connection with the release of AarhusKarlshamn AB's Interim Report for the fourth quarter and Year-end Report 2012, we invite you to a "Press & Analyst Conference" by telephone. The conference will be chaired by Arne Frank, President and CEO. Time: February 7, 2013 at 1 pm CET.

How to register in advance: A link will be published on our website, www.aak.com. Please click on the section Investor. Those wishing to attend the conference are kindly asked to click on the link for registration and fill in your details and from which country you will call. To participate in the conference call, you must dial the conference number provided in the confirmation, no later than five minutes before 1 pm , February 7, 2013.

A link to the presentation material will be available on the section Investor on www.aak.com.

Publication dates

The interim report for the first quarter 2013 will be published on April 25, 2013.

The interim report for the second quarter 2013 will be published on July 22, 2013.

The interim report for the third quarter 2013 will be published on October 30, 2013.

The fourth quarter and year-end report for 2013 will be published on February 4, 2014.

The annual and quarterly reports are also published on www.aak.com

Investor Relations contact:

Arne Frank, President and CEO Phone: + 46 40 627 83 00

Peter Korsholm, Chief Financial Officer Phone: + 46 40 627 83 00

Fredrik Nilsson, Director Group Controlling and Investor Relations Phone: + 46 40 627 83 34 Mobile: + 46 708 95 22 21 E-mail: [email protected]

AarhusKarlshamn AB (publ) Jungmansgatan 12, 211 19 Malmö, Sweden Phone: + 46 40 627 83 00, Reg. No. 556669-2850, www.aak.com

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