AAK Annual Report 2018

50 AAK’s operating profit per quarter 2010–2018 550 500 450 400 350 300 250 200 150 100 50 0 SEK million 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 Reasons to invest in AAK 1. Above the market growth The underlying global growth in the segments in which AAK is present is normally in line with global GDP growth. AAK has in the past been able to grow faster than the underlying markets in our focus areas – speci- ality and semi-speciality solutions in Food Ingredients and Chocolate & Confectionery Fats. With our recent greenfield investments and latest acquisitions in growth markets, we have strengthened our geographic footprint and become a truly global company. Our ambition is to continue to grow faster than the underlying markets. 2. Average 10 percent year-over-year operating profit improvement for the coming years Between 2010 and 2018, AAK has annually increased its operating profit by 10 percent on average (at fixed foreign exchange rates and excluding acquisitions). Including acquisitions and positive currency translation differences, operating profit has increased 11 percent on average. Based on our high go-to-market activity (sales and customer innovation) and new product develop- ment, the very solid foundation we have built, our strong executive and local management, and our increased focus on mergers and acquisitions, we see no reason to lower that ambition. 3. Strong balance sheet supporting further growth Despite considerable investments to strengthen our geographic footprint and expand our capacity, we have over recent years built a very strong balance sheet with an improved equity ratio. Combined with long-term loan agreements and the establishment of an MTN program (Medium Term Note), this has created a solid foundation and a flexible alternative for further growth, both organi- cally and through selective and strategic acquisitions. 4. Very strong underlying megatrends – demography and technology AAK is represented in regions where both population and urbanization are on the increase – demographic changes that present substantial market opportunities. We see a growing middle class with a higher income and an increased spending power, and there is also a growing senior population as people live longer. Technology is another significant growth driver. Today, everything is about sharing online. This is a good opportunity for strong brands to engage with consumers. AAK is, through our customer co-devel- opment approach, putting a lot of focus on the trends and global key drivers that affect the behavior of end consumers – indulgence, health, trust, personalization, and convenience. Q1 Q2 Q4 Q3 178 204 220 242 287 321 381 431 460 164 196 211 244 281 326 368 409 454 246 273 303 331 376 431 475 526 231 251 265 292 328 343 388 435 471 516