AAK Annual Report 2017
VDZ DQRWKHU UHFRUG KLJK RSHUDWLQJ SUR¿W IRU $$. KRZ ZRXOG \RX GHVFULEH WKH FRPSDQ\¶V ¿QDQFLDO SHUIRUPDQFH" Very strong, particularly when you consider the challenges we faced during the year. We continue to deliver double-digit LPSURYHPHQW LQ RSHUDWLQJ SUR¿W ZKLFK LV LQ OLQH ZLWK RXU management ambition, and we have now had 28 straight TXDUWHUV ZLWK UHFRUG KLJK RSHUDWLQJ SUR¿W TXDUWHU RYHU quarter as well as a record-high full-year result every year since 2010. That is quite impressive. The organic growth for our speciality and semi-speciality solutions continued during 2017 and with 5 percent organic JURZWK ZH KDYH GH¿QLWHO\ JDLQHG PDUNHW VKDUHV :H KDYH DOVR LGHQWL¿HG KRZ WR IXUWKHU WKDW RUJDQLF JURZWK DV ZHOO as continued our effective cost control with annual productivity improvements. )UHGULN 1LOVVRQ &)2 $QRWKHU VWURQJ ¿QDQFLDO SHUIRUPDQFH :KDW LV \RXU FRPPHQW RQ WKH FRPSDQ\¶V FDVK ÀRZ" )ROORZLQJ D QHJDWLYH FDVK ÀRZ DIWHU LQYHVWPHQW DFWLYLWLHV in 2016, mainly due to the acquisition of California Oils Corporation and higher raw material prices, we have in 2017 D SRVLWLYH FDVK ÀRZ DIWHU LQYHVWPHQW DFWLYLWLHV 7KLV GHVSLWH the fact that the Group’s capital expenditure continued to be DW D KLJK OHYHO GXH WR WKH ¿QDOL]DWLRQ RI RXU JUHHQ¿HOG SURMHFW in China as well as investments for increasing our capacity to meet the strong demand from our customers. We expect capital expenditure to be at a slightly higher level in 2018 compared to 2017. &DVK ÀRZ IURP ZRUNLQJ FDSLWDO ZDV QHJDWLYH LQ Good working capital management has impacted cash ÀRZ IDYRUDEO\ +RZHYHU WKLV ZDV RIIVHW E\ D FRQWLQXHG organic volume growth, a net negative impact from higher raw material prices, and working capital tied up for our new factories in Brazil and China. Our focus on working capital days continues and some further improvements should be possible, particularly relating to payment terms with our suppliers and late payments from some customers. AAK strives to pay a stable dividend linked to the compa- ny’s long-term performance, and for the sixth year in a row we increased the dividend paid. Total paid dividend was SEK PLOOLRQ RU SHUFHQW RI WKH FRQVROLGDWHG SUR¿W DIWHU WD[ +RZ GR \RX DOORFDWH FDSLWDO" We always try to maximize our ability to invest in growth and create a higher shareholder return. To ensure we can continue to grow, we want to have a strong balance sheet and be well capitalized with a net debt/EBITDA ratio lower than 3. The dividend policy for the company is to have a SD\RXW UDWLR RI QHW SUR¿W RI ± SHUFHQW +LVWRUL - cally, the payout ratio has been around 35 percent. $$. KDV RYHU WKH ODVW \HDU LQYHVWHG VLJQL¿ - cant amounts in organic growth, built two new factories, and expanded others to secure that we have enough capacity to meet the strong demand for our solutions. The company will continue to invest in organic growth, both in equipment and in our employees, to secure that we can continue to be the co-development partner to our customers. We also have an ambition to continue to grow through mergers and acquisitions, either to expand our geographical footprint and get closer to our customers or to invest in technology that adds even more value to our unique customer co-developed solutions.
Made with FlippingBook
RkJQdWJsaXNoZXIy NDg2ODU=