AAK Annual Report 2016

With another good AAK year behind you, how would you GHVFULEH WKH FRPSDQ\¶V ¿QDQFLDO SHUIRUPDQFH" I would describe it as solid, no doubt. We have now been able to deliver 24 straight quarters with record-high operating SUR¿W TXDUWHU RYHU TXDUWHU DV ZHOO DV D UHFRUG KLJK IXOO \HDU result every year since 2010. This is a quite impressive track record. The organic growth for our speciality and semi-speciality VROXWLRQV FRQWLQXHG GXULQJ DQG ZH KDYH GH¿QLWHO\ JDLQHG PDUNHW VKDUHV :H KDYH DOVR LGHQWL¿HG WKH GULYHUV for further organic growth and continued our effective cost control with annual productivity improvements. Fredrik Nilsson, CFO: No reasons to lower ambition level :KDW DUH \RXU FRPPHQWV RQ WKH FDVK ÀRZ" $IWHU D YHU\ VWURQJ FDVK ÀRZ LQ ZH KDYH VHHQ DQ RXWÀRZ IURP ZRUNLQJ FDSLWDO LQ PDLQO\ GXH WR VLJQL¿ - cantly higher raw material prices. As a consequence of the organic growth, we have also tied up more working capital in accounts receivables. Our focus on working capital days continues and some further minor improvements should be possible, particularly to improve payment terms with our suppliers. The Group’s capital expenditure continued to be at a high OHYHO GXH WR RXU WZR JUHHQ¿HOG SURMHFWV LQ %UD]LO DQG &KLQD We furthermore acquired California Oils Corporation on the US West Coast – a very strategic acquisition in order for us to be a national player in the US. For 2017, we expect capital expenditure to be another year above historic levels, but clearly below 2016. )RU WKH ¿IWK \HDU LQ D URZ $$. LQFUHDVHG WKH GLYLGHQG SDLG AAK strives to pay a stable dividend linked to the company’s long-term performance. Total paid dividend was SEK 328 PLOOLRQ RU SHUFHQW RI WKH FRQVROLGDWHG SUR¿W DIWHU WD[ With your company program AAKtion now completed, what ambition level for the coming years can we expect? Our former management ambition was launched in 2010, DLPLQJ WR GRXEOH RXU RSHUDWLQJ SUR¿W IURP 6(. PLOOLRQ WR 6(. PLOOLRQ H[FOXGLQJ DFTXLVLWLRQV DQG DW ¿[HG FX. With some support from acquisitions and positive FX we reached that target by the end of 2016. The average annual improvement year-over-year H[FOXGLQJ DFTXLVLWLRQV DQG DW ¿[HG ); KDV EHHQ 10 percent since 2010. The activity levels in our company programs AAK Acceleration and AAKtion have been high and combined with our solid foundation and supported by very strong business drivers we see no reasons to lower the ambition level for the coming years. We expect, on average, a 10 percent year-over-year LPSURYHPHQW LQ RSHUDWLQJ SUR¿W ZKLFK will support a good and consistent im- provement in earnings per share. Our new company program, The AAK Way, will guide us up through 2019. Our key focus with the program is to enable the company to continue to deliver strong organic growth. This will be achieved by IRFX VLQJ RQ ¿YH SULRULW\ DUHDV *R WR Market, Operational Excellence, Special Focus Areas, Innovation, and People. 28