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AAK Annual Report 2015

2015 in brief Volumes increased by 8 percent (5) during 2015 mainly due to acquisitions and volume growth within Food Ingredients. Organic growth was 3 percent (-1). Net sales amounted to SEK 20,114 million (17,814). The increase was mainly due to the net effect of the acquisitions, organic volume growth, a positive currency translation impact of SEK 1,417 million and lower raw material prices. Operating profit, excluding acquisition costs and nonrecurring items, reached SEK 1,411 million (1,242), an improvement of 14 percent. The currency translation impact was positive SEK 125 million (48). Operating profit, including non-recurring items and acquisition costs, reached SEK 1,409 million (1,262), an improvement of 12 percent. The largest business area, Food Ingredients, reported an operating profit at SEK 903 million (803), an improvement of 12 percent. Operating profit per kilo was unchanged and amounted to SEK 0.72 (0.72). The business area Chocolate & Confectionery Fats reported an increased operating profit at SEK 553 million (460), an improvement of 20 percent. Operating profit per kilo increased by 21 percent, to SEK 1.77 (1.46). The smallest business area, Technical Products & Feed, had a stable operating profit which amounted to SEK 88 million (89 adjusted for the divestment of Binol). Cash flow after changes in working capital amounted to SEK 1,736 million (692), including improvements in working capital by SEK 380 million (negative SEK 560 million). Earnings per share increased by 5 percent, to SEK 22.17 (21.15). Return on Capital Employed (ROCE), calculated on a rolling 12 months basis, was 15.7 percent (16.0). TROPICAO™, our latest innovation within Chocolate & Confectionery Fats, was launched in September. TROPICAO ™ has been developed to overcome heatrelated bloom, the most frequent reason for chocolate quality complaints in hot climates. With AAK’s innovative solution, chocolate manufacturers in hot climate markets such as Latin America, Asia and the Middle East will be able to produce bloom-stable chocolate and still maintain the chocolate’s sensorial properties. At the end of the year TROPICAO™ and Akopastry HP, AAK’s latest innovation within the Bakery segment, were both recognized at Food ingredients Europe Innovation Awards in Paris, France. Food ingredients Europe is the global meeting place for all stakeholders in the food ingredients industry. TROPICAO™ was awarded best confectionery innovation while Akopastry HP won the award for best bakery innovation. In September, we acquired 51 percent of the shares of Kamani Oil Industries Pvt Ltd., one of the leading speciality and semi-speciality oils and fats companies in India. In 2014, the company had revenues of approximately SEK 1,000 million, with an annual volume of 100,000 MT. The acquisition is an integral part of our company program AAKtion and it will strengthen AAK’s presence in another fast-growing economy. During the fall we entered a management agreement with the trustee in the bankruptcy of TLC and Belovo – both part of the BNLfood Group – to restart the operations of TLC, an ingredient supplier to the global nutrition market, located in Bastogne, Belgium. TLC specializes in extracting phospholipids from egg yolk. By blending these phospholipids with our Akonino® solution, we will be able to extend our product range within the infant nutrition market and the nutrition markets in general, with new advanced customer co-developed products. In October, we established a partnership with Miyoshi Oils & Fats Co. by forming a new company together for the Japanese market, AAK Miyoshi JP. AAK owns 70 percent of the new company and the remaining 30 percent is owned by Miyoshi Oils & Fats Co. AAK Miyoshi JP will have both sales and customer innovation resources and will focus on products for the chocolate and confectionery, bakery, dairy and infant nutrition markets. Our strong and continued commitment to responsible growth was lined out in our annual Sustainability Report, documenting our achievements and future objectives. Jan Lenferink was in March 2015, appointed President AAK Europe. Jan is based in Malmö, Sweden and a member of the AAK Executive Committee. In May 2015, Carla Leilani Packness was appointed Vice President HR & Communications. Carla is based in Malmö, Sweden and a member of the AAK Executive Committee. IV


AAK Annual Report 2015
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