AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

AAK

Quarterly Report Feb 18, 2011

2874_10-k_2011-02-18_32d62e30-5f13-43c6-9202-71b15f05648d.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

Operating profit AAK Group and Business Areas, fourth quarter 2010

Operating profit AAK Group and Business Areas, full year 2010

Fourth quarter 2010

  • Net sales increased to SEK 3,930 million (3,788) due to increased raw material prices, partly offset by negative currency translation impact of SEK 149 million. Volume increased by 1 percent.
  • Operating profit at SEK 251 million (289). Adjusted for divestments and at fixed exchange rates, operating profit amounted to SEK 258 million (287). Fourth quarter 2009 was exceptional as earlier communicated.
  • Earnings per share amounted to SEK 4.98 (3.85)
  • AAK has in the fourth quarter started to use hedge accounting and thereby eliminated the IAS 39 effect, see page 9.

Full year 2010

  • Net sales were SEK 14,808 million (15,884). The decrease in sales was net of a negative translation impact of SEK 600 million and reflected the deferred effect of lower raw material prices. Volume increased by 1 percent.
  • Operating profit, at SEK 824 million (827) was in line with last year. Adjusted for divestments and at fixed exchange rates, operating profit amounted to SEK 855 million (810), an improvement of 6 percent.
  • Earnings per share amounted to SEK 14.15 (10.14).
  • Proposed dividend of SEK 4.50 (4.25), an increase by SEK 0.25, or 6 percent.

AAK Group and Business Areas – Volume and operating profit per kilo, Q4 and full year* * At comparable exchange rates

AAK Group Food Ingredients Chocolate &
Confectionery Fats
Technical Products & Feed
Volume
Q 4 +1 percent Q 4 +1 percent Q 4 +1 percent Q 4 +0 percent
374,000 MT to 376,000 MT 221,000 MT to 222,000 MT 78,000 MT to 79,000 MT 75,000 MT to 75,000 MT
2010 +1 percent 2010 -4 percent 2010 +15 percent 2010 +0 percent

Operating profit per kilo

Q 4 -12 percent Q 4 -2 percent Q 4 -28 percent Q 4 +0 percent
0.77 SEK to 0.68 SEK 0.65 SEK to 0.64 SEK 1.88 SEK to 1.35 SEK 0.41 SEK to 0.41 SEK
2010 +2 percent 2010 +23 percent 2010 -25 percent 2010 +17 percent
0.58 SEK to 0.59 SEK 0.47 SEK to 0.58 SEK 1.56 SEK to 1.17 SEK 0.29 SEK to 0.34 SEK

AAK´s Summarized Financial Statement, 2010

Financial overview

Income statement
SEK million
Q 4
2010
Q 4
2009
Change
%
Full year
2010
Full year
2009
Change
%
Net sales 3,930 3,788 +4% 14,808 15,884 -7%
Gross contribution 1,006 1,055 -5% 3,625 3,744 -3%
Operating profit 251 289 -13% 824 827 -0%
Net result* 204 157 +30% 579 415 +40%
Earnings per share* 4.98 3.85 +30% 14.15 10.14 +40%

* Excluding IAS 39 effect and deferred tax related to this adjustment.

Gross contribution

Q 4 Q 4 Full year Full year
SEK million 2010 2009 2010 2009
Food Ingredients
442
554 536 1,952 1,906
Chocolate & Confectionery Fats
333
372 429 1,394 1,508
Technical Products & Feed
65
80 73 279 261
Group Functions - 17 - 69
Total for the Group 1,006 1,055 3,625 3,744

Operating result

Q 1-3
Q 4
Q 4 Full year Full year
SEK million 2010 2009 2010 2009
Food Ingredients 137 143 475 427
Chocolate & Confectionery Fats 106 147 341 394
Technical Products & Feed 31 31 97 82
Group Functions -23 -32 -89 -76
Total for the Group 251 289 824 827

The Group, fourth quarter

Net sales

Net sales increased by SEK 142 million, due to increased raw material prices, partly offset by a negative currency translation impact of SEK 149 million.

The fourth quarter showed volume growth for the two main business areas Food Ingredients and Chocolate & Confectionery Fats.

The general market conditions, which were commented upon during the first nine months of 2010 have continued during the fourth quarter.

Gross contribution

Excluding translation effects, gross contribution improved by SEK 2 million. Gross contribution per kilo, excluding translation effects was unchanged at SEK 2.81 (2.82). Food Ingredients and Technical Products & Feed continued to report improvements in all spheres while Chocolate & Confectionery Fats suffered from margin pressure.

During the fourth quarter of 2010, AAK recognised negative translation effects of SEK 51 million. After including translation effects, gross contribution decreased by SEK 49 million.

Operating result

Operating profit for the fourth quarter 2010 was below the fourth quarter 2009, which had turned out exceptionally well due to a number of positive outcomes in that quarter.

Operating profit reached SEK 251 million (289). Adjusted for divestments and fixed exchange rates, operating profit amounted to SEK 258 million (287).

The company has recorded additional insurance compensation of SEK 19 million, which is not included in the operating profit of SEK 251 million. This insurance compensation relates to business interruption in both 2008 and 2009.

Investments

The Group's investments in fixed assets totalled SEK 91 million (113), mainly comprising regular maintenance investments.

Cash flow

Positive cash flow from operating activities before changes in working capital reached SEK 289 million (298). After changes in working capital, cash flow was SEK 531 million (750).

The majority of the strong cash flow in 2009 was attributable to a significant decline in raw material prices which led to reduced working capital.

The ongoing internal working capital improvement project continued to impact positively.

Cash flow, after net investments of SEK 87 million (110), was SEK 445 million (640).

Financial position

The equity/assets ratio amounted to 34 percent (35 percent as at 31 December 2009).

Group borrowings as at 31 December 2010 amounted to 2,634 million (SEK 3,186 million on 31 December 2009). As at 31 December, the Group has total credit facilities of SEK 6,711 million.

Long term refinancing of SEK 4,200 million was finalized January 2011 and comprising part of the total committed facilities of SEK 6,000 million for five years or more.

Employees

The average number of employees in the Group as at 31 December 2010 was 2,101 (2,137 on 31 December 2009).

Since year-end 2009 the average number of employees in Scandinavia has decreased by 63 persons as a consequence of the ongoing rationalisation programme.

The Parent Company and Group Functions

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

CEO comments

"Operating profit for 2010 was in line with our expectations. We now have a very strong foundation for our mid- and long-term, the "AAK Acceleration programme". Focus areas are Growth, Efficiency and People. The prioritized growth areas are: Bakery & Bakery Service, Dairy Fat Industries, Chocolate & Confectionery Fats, Infant Nutrition (Baby Food), Food Service, Fast-growing economies (e.g. China and Brazil) and Merger & Acquisitions.

For 2011 we have a cash flow challenge because of significant raw material price increases that occurred in 2010 but with a time lag affecting 2011. I am pleased that we have been able to finalize the refinancing, with improved financial flexibility and we have now total committed facilities of SEK 6,000 million for five years or more"," says CEO Arne Frank in a comment to the Q4 report.

Business Area Food Ingredients, Q 4

Net sales

Net sales for the business area increased by SEK 143 million, due to increased raw material prices, partly offset by negative currency translation impact of SEK 98 million.

As a consequence of the policy of back-toback hedging of raw materials there is a time lag between movement in the spot price and the financial impact. The Group policy is to secure the margin in sales contracts by hedging the corresponding raw material purchases and stocks. Equally, currency exposure is hedged.

Volume increased by 1 percent relative to 2009.

Gross contribution

Gross contribution increased to 554 SEK million (536) including negative translation effects of SEK 24 million. Gross contribution per kilo increased by 2 percent from SEK 2.43 to SEK 2.49 as a result of a favourable product mix in the quarter.

Gross contribution, excluding translation effects, improved by SEK 42 million, or 8 percent. Excluding translation effects, gross contribution per kilo increased by 7 percent, from SEK 2.43 to SEK 2.60.

Margins continued to improve as a result of the specialisation strategy with focus on a higher proportion of high-value products. All speciality product areas, such as Infant Nutrition (Baby Food), Bakery & Bakery Service and Food Service, continued to develop well.

Operating result

Operating profit amounted to SEK 137 million (143), a decrease of 4 percent. The result includes negative translation effects of SEK 6 million. At fixed exchange rates, operating profit was in line with last year.

During the fourth quarter of 2010 the Food Ingredients business area also continued to benefit from the ongoing rationalisation programme. Cost savings have, however, been matched by increased investments in organic growth outside Scandinavia.

External factors/activities

The "AAK Acceleration" programme covers significant growth opportunities in our speciality products such as Infant Nutrition (Baby Food), Bakery and Bakery Services, Dairy Industry and Food Service.

Raw material prices for palm and rapeseed oil, SEK/tonne

Food Ingredients

Q 4 Q 4 Full year Full year
(SEK million) 2010 2009 2010 2009
Net sales 2,391 2,248 8,927 9,702
Gross contribution 554 536 1,952 1,906
Gross contribution
per kilo 2.49 2.43 2.26 2.12
Operating profit excl.
non-recurring items 137 143 475 427
Volumes
(thousand tonnes) 222 221 861 898

Business Area Chocolate & Confectionery Fats, Q 4

Net sales

Net sales for the business area improved by SEK 25 million or 2 percent on account of volume growth and raw material price increases (mainly palm oil) partly offset by negative translation effects of SEK 50 million.

Cocoa Butter Equivalent (CBE) volumes in the fourth quarter of 2010 were higher than both the third quarter of 2010 and fourth quarter of 2009 with positive volume growth in most regions.

Gross contribution

Excluding translation effects gross contribution decreased by SEK 30 million whilst gross contribution per kilo declined by 8 percent from SEK 5.50 to SEK 5.05.

During the fourth quarter the business area recognised negative translation effects of SEK 27 million. After including these effects, gross contribution decreased by SEK 57 million.

The average margin in the fourth quarter 2010 was lower than in the third quarter, due to different product mix but with the same underlying price level that prevailed in the earlier quarters of 2010.

Operating result

The operating result of SEK 106 million (147) was lower than in the fourth quarter of 2009. Compared to last year, volume increased by 1 percent but this did not compensate for lower margins.

The general market conditions, which were commented upon during the first nine months of 2010, have continued during the fourth quarter.

External factors/activities

The cocoa butter price has decreased from a relatively high level to a level comparable to that prevailing during the latter part of 2007.

Price trend – cocoa butter, SEK/tonne

The International Cocoa Organization (ICCO) has issued reports and comments on the supply/demand of cocoa beans.

Chocolate & Confectionery Fats

(SEK million) Q4
2010
Q 4
2009
Full year
2010
Full year
2009
Net sales 1,146 1,121 4,474 4,564
Gross Contribution 372 429 1,394 1,508
Gross contribution 4.72 5,50 4,68 5,96
per kilo
Operating profit excl.
non-recurring items
106 147 341 394
Volumes
(thousand tonnes)
79 78 298 253

Business Area Technical Products & Feed, Q 4

Net sales

Net sales for the business area improved by SEK 60 million, or 18 percent mainly on account of increased raw material prices. Volumes were stable compared to last year.

Gross contribution

Gross contribution increased in the fourth quarter 2010 by SEK 7 million, to SEK 80 million, or 10 percent, compared to the corresponding quarter in 2009. Gross contribution per kilo increased by 11 percent, from SEK 0.97 to SEK 1.08.

The higher gross contribution per kilo was mainly caused by a different product mix compared to the corresponding quarter in 2009.

Operating result

Operating profit was equal to last year SEK 31 million (31).

External factors/activities

Technical products, particularly environmental friendly bio lubricants, continued to enjoy signs of market recovery.

Technical Products & Feed

Q 4 Q 4 Full year Full year
(SEK million) 2010 2009 2010 2009
Net sales 393 333 1,407 1,295
Gross contribution 80 73 279 261
Gross contribution
per kilo 1.08 0.97 0.99 0.93
Operating profit excl. 31 31 97 82
non-recurring items
Volumes 75 75 282 282

The Group, full year

Net sales

Net sales were SEK 14,808 million (15,884). The decrease in sales was net of a negative translation impact of SEK 600 million and reflected the deferred effect of lower raw material prices. Volumes increased by 1 percent.

Gross contribution

Excluding translation effects, gross contribution improved by SEK 49 million and gross contribution per kilo increased by 1 percent, from SEK 2.61 to SEK 2.63.

Food Ingredients and Technical Products & Feed continued to report improvements in all areas while Chocolate & Confectionery Fats suffered from margin pressure.

Operating result

Operating profit for the full year reached SEK 824 million (827) but, adjusted for divestments and at fixed exchanges rates, operating profit was at SEK 855 million (810).

The result includes negative translation effects of SEK 31 million.

The company has recorded additional insurance compensation of SEK 19 million, which is not included in the operating profit of SEK 824 million. This insurance compensation relates to business interruption in both 2008 and 2009.

Food Ingredients and Technical Products & Feed improved operating results compared to the full year of 2009.

Investments

The Group's net investments in fixed assets totalled SEK 335 million (316) and mainly comprised routine maintenance investments.

Cash flow

Cash flow from operating activities but before investments amounted to SEK 757 million (2,265).

The bulk of the strong cash flow in 2009 was due to a significant decline in raw material prices which led to a reduction in working capital. The company also received insurance compensation of SEK 70 million during 2009.

The ongoing internal working capital improvement project continued to impact positively on working capital turnover.

Cash flow, after net investments of SEK 331 million (313) was SEK 426 million (1,952).

Full legal financial information

These pages, 9-20, contain legal financial information including non-recurring items and IAS 39.

The Group, fourth quarter

The operating result, including non-recurring items and IAS 39 effects, amounted to SEK 410 million (381). The result includes the effect of IAS 39, which exerted a positive impact of SEK 140 million (92), see hedge accounting paragraph below.

The company also recorded additional insurance compensation of SEK 19 million. This relates to business interruption in both 2008 and 2009.

Hedge accounting

AAK has effectively October 1 2010 fully adopted hedge accounting based on fair value hedging. The IAS 39 effect in the fourth quarter 2010 of SEK 140 million reflects earlier recognised "IAS 39 effect" net losses which now have been reversed into the income statement.

The new accounting method will not require any changes in the current business model. Further there will be no impact on the underlying profitability or risk level in the group.

Commencing the first quarter 2011 there will be no IAS 39 effect.

Result after financial items

The Group result, after financial items, amounted to SEK 396 million (366). Net financial items totalled negative SEK 14 million (negative 15).

Group, full year

The operating result, including non-recurring items and IAS 39 effects, amounted to SEK 882 million (1,475). The result includes the net IAS 39 effect of SEK 39 million (578) due the use of hedge accounting during the fourth quarter 2010.

The company also recorded additional insurance compensation of SEK 19 million. This relates to business interruption in both 2008 and 2009.

Result after financial items

The Group result, after financial items, amounted to SEK 828 million (1,298). Net financial items totalled negative SEK 54 million (negative 176). This significant improvement was due to lower interest rates and substantially lower borrowings.

Tax

Reported tax cost corresponds to an average tax rate of 24 percent (35). The underlying average tax rate for the Group is approximately 27 percent (29). The favourable tax cost in 2010 was due to tax credits received in certain countries, related to investments.

Financial position

The equity/assets ratio reduced to 34 percent at 31 December 2010 (35 percent at 31 December 2009), due to the payment of the dividend.

The Group's equity as at 31 December 2010 totalled 3,188 million (SEK 2,949 million at 31 December 2009), and the balance sheet total was SEK 9,252 million (8,513 at 31 December 2009).

Long term refinancing of SEK 4,200 million was finalized in January 2011 comprising part of the total committed facilities of SEK 6,000 million for five years or more.

General

Related parties

No significant changes have taken place in relations or transactions with related parties since the annual report for 2009.

Insurance compensation.

On 4 December 2007, an explosive fire occurred at AAK's factory in Aarhus, Denmark.

The incident occurred in the part of the factory where vegetable oils are produced for use as components in speciality fats for chocolate and confectionery products, mainly CBE. All affected plants were up and running by the fourth quarter 2008.

During 2008 and 2009 AAK received insurance payments for business interruption in the sum of approximately SEK 421 million.

The company has recorded additional insurance compensation of SEK 19 million, during 2010. AAK has in total received SEK 440 million.

A final settlement with the insurance companies has not yet been concluded. Any predictions of the final outcome is subject to uncertainty.

Risk and uncertainty factors

All business operations involve risk – a controlled approach to risk taking is a prerequisite in maintaining good profitability. Risk may be dependent upon events in the outside world and may affect a specific sector, market or country, and the risk may also be purely company-specific.

At AAK, effective risk management is a continuing process carried out within the framework of operational management and forms a natural part of the day-to-day monitoring of operations.

External risks

The AAK Group is exposed to the fierce competition that characterises the industry, as well as fluctuations in raw material prices affecting working capital.

Financial risk

The operations of the AAK Group involve exposure to significant financial risks, particularly currency risks and raw material price risks.

Operational risk

The raw materials used in the operation are agricultural products, and availability may therefore vary due to climatic and other external factors.

Accounting policies

This interim report has been prepared in accordance with IFRS, with the application of

IAS 34, Interim Financial Reporting, and the Annual Accounts Act. The accounting policies and assessment policies adopted and the basis for assessment are the same as those used in the most recent annual report.

New accounting principles in 2010

In accordance with considerations presented in the Annual Report note 2, regarding new accounting principles for 2010, a number of new standards and IFRIC interpretations became effective as from January 1, 2010.

AAK has effectively from October 1 2010 started to use hedge accounting based on fair value hedging in accordance with IAS 39.

Definitions

All financial information on pages 1-8 is exclusive of non-recurring items and IAS 39. For full legal financial information including non-recurring items and IAS 39, see pages 9- 20.

Information dates

The annual report for 2010 will be made available at the end of April, 2011.

The interim report for the first quarter for 2011 will be published on May 4, 2011.

The interim report for the second quarter for 2011 will be published on July 20, 2011.

The interim report for the third quarter for 2011 will be published on November 4, 2011.

Nomination committee

At the 2010 Annual General Meeting, Mikael Ekdahl (BNS Holding AB), Carl Bek-Nielsen (BNS Holding AB), Henrik Didner, (Didner & Gerge Mutual Fund), K G Lindwall (Swedbank Robur Fonder) and Claus Wiinblad (ATP), were elected members of the Nomination Committee in respect of the Annual General Meeting 2011. Mikael Ekdahl was elected chairman of the Nomination Committee.

Annual General Meeting 2011

The Annual General Meeting will be held on 17 May 2011 at 14.00 CET in Malmö, Sweden (Europaporten). The Annual Report for 2010 is expected to be distributed to the shareholders during the week starting 25 April 2011 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 11 May 2011. Notification of attendance should be made to AAK's head office no later than 16:00 CET on 11 May 2011. To be eligible to participate in the Annual General Meeting, shareholders with nomineeregistered 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 11 May 2011.

Proposed dividend

The Board of Directors and the CEO propose that a dividend of SEK 4.50 (4.25) per share be paid for the financial year 2010. The proposed record day for the dividend is 20 May 2011. It is expected that the dividend will reach the shareholders on 25 May 2011.

Events after the balance sheet date

No significant events have occurred since the balance sheet date.

The Parent Company

The Parent Company's invoiced sales during fourth quarter 2010 were SEK 42 million (42).

The result for the Parent Company after financial items amounted to negative SEK 24 million (68).

Interest-bearing liabilities minus cash and cash equivalents and interest-bearing assets totalled positive SEK 160 million (negative 227 as at 31 December 2009). Investments in intangible and tangible assets amounted to SEK 0 million (2).

The Parent Company's balance sheet and income statement are shown on page 20.

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.

Changes in the balance sheet

No major changes since year-end.

Malmö, February 18, 2011

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

John Goodwin Märit Beckeman Harald Sauthoff Anders Davidsson Board member Board member Board member Board member

Ulrik Svensson Arne Frank Annika Westerlund Leif Håkansson Board member Chief Executive Trade union Trade union

Officer and President representative representative

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 18 February, 2011 at 8.20 a.m. CET.

Auditor's Review Report

We have reviewed this report for the period 1 January 2010 to 31 December 2010 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 Standards on Auditing in Sweden, RS, 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, 18 February 2011 PricewaterhouseCoopers AB

Anders Lundin Authorised Public Accountant Lead Auditor

Development for the Group

Consolidated income statements

(SEK million) Q 4
2010
Q 4
2009
Full year
2010
Full year
2009
Net sales 3,930 3,788 14,808 15,884
Other operating income 30 15 46 98
Total operating income 3,960 3,803 14,854 15,982
Raw materials and supplies -2,829 -2,650 -11,271 -11,522
Other external expenses -332 -338 -1,169 -1,350
Costs for remuneration to employees -284 -329 -1,146 -1,222
Amortisation and impairment losses -100 -104 -376 -403
Other operating expenses -5 -1 -10 -10
Total operating expenses -3,550 -3,422 -13,972 -14,507
Operating result 410 381 882 1,475
Interest income 2 3 8 6
Interest expense -15 -25 -59 -164
Other financial items -1 7 -3 -19
Result before tax 396 366 828 1,298
Income tax -79 -180 -202 -455
Net result 317 186 626 843
Attributable to non-controlling interests 1 0 2 17
Attributable to the Parent Company's
shareholders
316 186 624 826
SHARE DATA
Number of shares, thousand
Thereof own shares
40,898
-
40,898
-
40,898
-
40,898
-
Earnings per share, SEK* 7.75 4.53 15.26 20.19
Equity per share, SEK 77.38 71.56 77.38 71.56
Market value on closing date 188.50 157.00 188.50 157.00

* The calculation of earnings per share is based on a weighted average number of outstanding shares. No dilution from outstanding subscription options during the fourth quarter 2010.

Comprehensive income

Q 4 Q 4 Full year Full year
(SEK million) 2010 2009 2010 2009
Income for the period 317 186 626 843
Exchange differences on translation of
foreign operations -21 35 -229 -113
Total comprehensive income for 296 221 397 730
the period
Attributable to non-controlling interests
Attributable to the Parent Company's
1 -28 2 -18
Shareholders 295 249 395 748

Balance sheet in summary for the Group

(SEK million) 31.12.2010 31.12.2009
ASSETS
Goodwill 580 652
Other intangible assets 102 112
Tangible assets 2,718 2,978
Financial assets 133 131
Total non-current asset 3,533 3,873
Inventory 2,299 2,237
Current receivables 2,880 2,081
Cash and cash equivalents 540 322
Total current assets 5,719 4,640
TOTAL ASSETS 9,252 8,513
EQUITY AND LIABILITIES
Shareholders' equity 3,164 2,927
Non-controlling interests 24 22
Total equity including minority share 3,188 2,949
Non-current liabilities 3,486 3,837
Accounts payables 838 568
Other current liabilities 1,740 1,159
Total current liabilities 2,578 1,727
TOTAL EQUITY AND LIABILITIES 9,252 8,513

No changes have arisen in contingent liabilities.

Change in the Group's equity

Total
Total Non- equity incl.
Equity controlling minority
(SEK million) capital interests share
Opening equity 1 January 2010 2,927 22 2,949
Profit for the period 624 2 626
Other comprehensive income -229 - -229
Total comprehensive income 395 - 397
Stock options 16 - 16
Dividend -174 - -174
Closing equity December 31, 2010 3,164 24 3,188
Total
Total Non- equity incl.
Equity controlling minority
(SEK million) capital interests share
Opening equity 1 January 2009 2,343 40 2,383
Profit for the period 826 17 843
Other comprehensive income -78 -35 -113
Total comprehensive income 748 -18 730
Dividend -164 - -164

Cash flow analysis in summary for the Group

Q 4 Q 4 Full year Full year
(SEK million) 2010 2009 2010 2009
Operating activities
Cash flow from operating activities before
change in working capital 289 298 874 1,015
Changes in working capital 243 452 -117 1,250
Cash flow from operating activities 532 750 757 2,265
Investing activities
Cash flow from investing activities -87 -110 -331 -313
Financing activities
Cash flow from financing activities -213 -513 -188 -1,724
Cash flow for the period 231 127 238 228
Cash and cash equivalents at start of period 313 193 322 105
Exchange rate difference for cash equivalents -4 2 -20 -11
Cash and cash equivalents at end of period 540 322 540 322

Summary income statement and key figures, January – December 2010

Q 4 Q 4 Full year Full year
(SEK million) 2010 2009 2010 2009
Net sales 3,930 3,788 14,808 15,884
Gross contribution excluding IAS 39 1,006 1,055 3,625 3,744
Operating profit excl. non-recurring items and IAS 39 251 289 824 827
Operating profit incl. non-recurring items excl. IAS 39
Operating profit/loss incl. non-recurring items and
270 289 843 897
IAS 39 410 381 882 1,475
Net result for the period 317 186 626 843
Attributable to the Parent Company's shareholders 316 186 624 826
Attributable to Non-controlling interests
Operating profit before depreciation/amortisation
1 0 2 17
(EBITDA) 510 484 1,258 1,877
Operating cash flow after investments 445 640 426 1,952
Investments 91 113 335 316
- thereof acquisitions - - - -
Equity attributable to the Company's shareholders 3,164 2,927 3,164 2,927
Non-controlling interests 24 22 24 22
Net debt 2,634 3,186 2,634 3,186
35
Net debt/equity ratio, multiple 0.83 1.08 0.83 1.08
Operating capital 6,198 6,569 6,198 6,569
Equity/assets ratio, % 34 35 34
Key figures Q 4
2010
Q 4
2009
Full year
2010
Full year
2009
Number of outstanding shares at close of period ('000) 40,898 40,898 40,898 4040,898
Thereof own shares - - - -
Return on capital employed, % 14 20 14 20
Return on equity, % 21.02 32.36 21.02 32.36
Equity per share, SEK 77.38 71.56 77.38 71.56
Net debt/equity ratio 0.83 1.08 0.83 1.08
Equity/assets ratio, % 34 35 34 35
Average number of employees 2,101 2,137 2,101 2,137
Gross contribution Q 4 Q 4 Full year Full year
(SEK million) 2010 2009 2010 2009
Food Ingredients 554 536 1,952 1,906
Chocolate & Confectionery Fats 372 429 1,394 1,508
Technical Products & Feed 80 73 279 261
Group Functions - 17 - 69
Subtotal excluding IAS 39 effects
16
1,006 1,055 3,625 3,744
IAS 39 effects 140 92 39 578
Total for the Group 1.146 1,147 3,664 4,322
Operating result
(SEK million)
Q 4
2010
Q 4
2009
Full year
2010
Full year
2009
Food Ingredients 137 143 475 427
Chocolate & Confectionery Fats 106 147 341 394
Technical Products & Feed 31 31 97 82
Group Functions -23 -32 -89 -76
Subtotal 251 289 824 827
Insurance compensation related to both 2008 and 2009 19 - 19 70
IAS 39 effects 140 92 39 578
Total for the Group 410 381 882 1,475

Consolidated income statement

All amounts on this page exclude IAS 39 effects if unless specific stated.

2009 2010
(SEK million) Q 1 Q 2 Q 3 Q 4 Full year Q 1 Q2 Q3 Q4 Full year
Net sales 4,223 4,045 3,827 3,788 15,884 3,510 3,594 3,774 3,930 14,808
Gross contribution 877 889 924 1,055 3,744 840 852 927 1,006 3,625
Operating result 157 146 235 289 827 178 164 231 251 824
Financial items -86 -46 -30 -14 -176 -14 -16 -10 -14 -54
Result after financial items 134 431 367 366 1,298 179 88 165 396 828
- thereof fair value movements in
raw materials and currency derivatives 63
261 162 92 578 15 -60 -56 140 39

Gross contribution excl. non-recurring items, Business Areas

2009 2010
(SEK million) Q 1 Q 2 Q 3 Q 4 Full year Q 1 Q 2 Q 3 Q 4 Full year
Food Ingredients 439 463 469 536 1,906 442 476 480 554 1,952
Chocolate & Confectionery Fats 356 342 381 429 1,508 333 310 379 372 1,394
Technical Products & Feed 60 67 61 73 261 65 66 68 80 279

Operating profit excl. non-recurring items, Business Areas

2009 2010
(SEK million) Q 1 Q 2 Q 3 Q 4 Full year Q 1 Q 2 Q 3 Q4 Full year
Food Ingredients 80 90 113 143 427 101 107 130 137 475
Chocolate & Confectionery Fats 74 55 118 147 394 76 57 102 106 341
Technical Products & Feed 13 19 20 31 82 21 22 23 31 97
Group Functions -10 -18 -16 -32 -76 -20 -22 -24 -23 -89
Total AAK Group 157 146 235 289 827 178 164 231 251 824
IAS 39 effect 63 261 162 92 578 15 -60 -56 140 39
Insurance compensation - 70 - - 70 - - - 19 19
Total legal operating profit AAK group 220 477 397 381 1,475 193 104 175 410 882
Financial net -86 -46 -30 -15 -177 -14 -16 -10 -14 -54
Result before tax 134 431 367 366 1,298 179 88 165 396 828

Development of the Parent Company

Income statement for the Parent Company

Full year Full year
(SEK million) 2010 2009
Net sales 42 42
Other operating income 2 45
Total operating income 44 87
Other external expenses -47 -50
Personnel expenses -44 -48
Amortisation and impairment loss -1 -1
Other operating expenses 0 0
Total operating expenses -92 -99
Operating result -48 -12
Dividend 0 87
Interest income and similar items 164 28
Interest expense and similar items -140 -35
Result before tax
x
-24 68
Income tax 8 2
Net result for the period
x
-16 70

Summary balance sheet for the Parent Company

(SEK million) 31.12.2010 31.12.2009
ASSETS
Other intangible assets 1 1
Tangible assets 4 4
Financial assets 7,667 5,238
Total non-current assets 7,672 5,243
Current receivables 54 36
Cash and cash equivalents 0 0
Total current assets 54 36
TOTAL ASSETS 7,726 5,279
EQUITY AND LIABILITIES
Shareholders' equity 4,174 4,314
Total equity 4,174 4,314
Non-current liabilities 3,402 906
Accounts payable 11 12
Other current liabilities 139 47
Total current liabilities 150 59
TOTAL EQUITY AND LIABILITIES 7,726 5,279

Talk to a Data Expert

Have a question? We'll get back to you promptly.