Interim Report Q4 and full year 2009

Jerker HartwallCEO

Anders Byström

CFO

2Interim Report Q4 and full year 2009 222

Highlight Q4 2009

Record operating profit at SEK 289 million (212).

Cash flow from operating activities before investments amounted to SEK 750 million (379) an improvement by SEK 371 million.

All financial information on this page is exclusive non recurring items and IAS 39

3Interim Report Q4 and full year 2009 333

Business Areas Q4 2009

Food Ingredients continued to improve and showed a record operating profit at SEK 143 million (90).

Chocolate & Confectionery Fats saw further improvements compared to the third quarter and was slightly better than the fourth quarter of 2008, SEK 147 million (139).

Technical Products & Feed achieved a record operating profit of SEK 31 million compared to SEK 2 million in the corresponding quarter in 2008.

4Interim Report Q4 and full year 2009 444

Highlight full year 2009

Operating profit at SEK 827 million (851).

Strong cash flow from operating activities before investments, SEK 2,265 million (17), an improvementby SEK 2,248 million.

Proposed dividend of SEK 4.25 (4.00) per share.

All financial information on this page is exclusive non recurring items and IAS 39

5

CEO summary full-year 2009

Record operating profit for Food Ingredients, SEK 427 million (319), and Technical Products & Feed, SEK 82 million (56).

For the first time the operating result for Food Ingredients exceeded the operating result for Chocolate & Confectionery Fats. The specialisation strategy remains an important factor in the growth of Food Ingredients business.

Substantial operating profit recovery for Chocolate & Confectionery Fats during the second half of the year relative to the first.

55Interim Report Q4 and full year 2009

6

Continued CEO summary full-year 2009

We have been able to reduce our exposure in the East European countries by proactive risk management.

During the second quarter, AAK recorded insurance compensation of SEK 70 million recognised as non-recurring income and not included in the operating profit of SEK 827 million above. A final settlement with the insurance company has not yet been concluded.

Arne Frank has been appointed as President and CEOfor AAK as from April 6, 2010.

66Interim Report Q4 and full year 2009

Do not look at:

Top line growth

or

EBIT margin

7Interim Report Q4 and full year 2009

Focus the analysis on

Improvement in operating profit (EBIT)

Operating profit (EBIT) per kilo or tonne

Return on Net Operating Assets

Net Debt / EBITDA

Interim Report Q4 and full year 2009 8

Financial summary

Interim Report Q4 and full year 2009 9

EBITDA is exclusive non recurrent items but includes SEK 70 million in insurance compensation received in Q2 2009.

455498

549583

653698 717

817851

801777

750

827

0

100

200

300

400

500

600

700

800

900

Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09

SE

K M

illio

n

Operating profit - rolling 12 months

Excl finalinsurance compensation

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09

NET DEBT/EBITDA 6,0%

7,0%

8,0%

9,0%

10,0%

11,0%

12,0%

13,0%

14,0%

15,0%

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Return on Net Operating Assets

10Interim Report Q4 and full year 2009 101010

Business areas A more balanced company

37%

63%

Operating profit 2008

Food Ingredients

Chocolate & Confectionery Fats

52%48%

Operating profit 2009

Food Ingredients

Chocolate & Confectionery Fats

11Interim Report Q4 and full year 2009 1111

Chocolate & Confectionery Fats (CCF)

Q4 October – December

Operating profit in the fourth quarter 2009 was slightly better than the fourth quarter of 2008, SEK 147 million (139).

CBE volumes in the fourth quarter were higher than in the third quarter but margins were lower.

The global capacity for CBE has increased at the same time as we experience a global recession.

CCF is in a strong position to take advantage of the CBE growth potential.

0

20

40

60

80

100

120

140

160

180

Q107Q207Q307Q407 Q108Q208Q308Q408 Q109Q209Q309Q409

SE

K M

illion

Operating profit

121212

Chocolate & Confectionery Fats - EBIT per tonne, SEK, rolling 12 months

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

660

800

980

1 2361 363

1 488

1 7421 811

1 6931 600

1 5141 557

Interim Report Q4 and full year 2009

Excl finalinsurance compensation

13Interim Report Q4 and full year 2009 1313

Food Ingredients

Q4 October – December

The fourth quarter 2009 turned out very good since most things went our way i.e. we had a favourable product mix, lower freight costs combined with high yields in the plants. Also the profitability on commodity products was on the high side.

Margins continued to improve due to the specialisation strategy that has led to a larger proportion of high-value products.

The business area has started to benefit part of the savings from the rationalisation programme.

14Interim Report Q4 and full year 2009 1414

Food IngredientsEBIT per tonne, SEK, rolling 12 months

0

50

100

150

200

250

300

350

400

450

500

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

308 312 317 311 312 314335 339

362378

405

474

15Interim Report Q4 and full year 2009 1515

Technical Products & Feed

Q4 October – December

Achieved a record operating profit of SEK 31 million compared to SEK 2 million in the corresponding quarter in 2008.

The main causal factor was very favourable raw material prices which had led to improved margins.

A special turnaround plan has been implemented and lowered the cost.

0

5

10

15

20

25

30

35

Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409

SEK

Million

Operating profit

16Interim Report Q4 and full year 2009 1616

Condensed balance sheetSEK million 31 Dec 09 31 Dec 08 Difference

Dec 09 vsDec 08

Total fixed assets 3 873 4 235 -362

Inventories 2 237 3 098 -861

Current receivables 2 081 3 640 -1 559

Cash and cash equiv. 322 105 +217

Total current assets 4 640 6 843 -2 203

TOTAL ASSETS 8 513 11 078 -2 565

Equity 2 949 2 383 +566

Non current liabilities 3 837 5 327 -1 490

Accounts payable 568 1 019 -451

Other current liabilities 1 159 2 349 -1 190

Total current liabilities 1 727 3 368 -1 641

TOTAL EQUITY AND LIABILITIES 8 513 11 078 -2 565

SEK Million Q4 2009

YTD 2009

Q4 2008

YTD 2008

Cash flow from operating activities before changes in WC

298 1 015 172 820

Change in working capital 452 1 250 207 -803

Cash flow from operating activities 750 2 265 379 17

Cash flow from investing activities -110 -313 -107 -387

Cash flow after investing activities 640 1 952 272 -370

17Interim Report Q4 and full year 2009 1717

Summary Cash flow statement for the Group

Cash flow after investing activities continued the positive development reported during the third quarter, and

has further strengthened the balance sheet.

18Interim Report Q4 and full year 2009 1818

Financial position

The Group’s net borrowings as at 31 December 2009 amounted to SEK 3,186 million (SEK 3,791 million on 30 September 2009).

Compared to September 30, 2009 net borrowings have decreased by SEK 605 million.

The Group has total credit facilities of SEK 5,982 million, of which SEK 5,756 million are committed to mid 2011.

19

Major rationalisation program in the Nordic region

Interim Report Q4 and full year 2009 19

Aarhus, Denmark Karlshamn, Sweden

20Interim Report Q4 and full year 2009 20

Rationalisation project

AarhusCBEfocus

KarlshamnMulti-oil

factory

ZaandijkNiche

Volumes

Volumes Volumes

Volumes

21Interim Report Q4 and full year 2009 2121

AAK’s rationalisation project

2121

SEK 200 million2005 – 2007

First wave of synergies

Second wave

SEK 100 million2007 – 2010

Additional SEK 200 million2010 – 2011

Third wave

= Total savings SEK 500 million, 2005 – 2011

++

Without any expected additional non-recurring cost

22Interim Report Q4 and full year 2009 22

Roadmap to growth

Chocolate & Confectionery Fats Food Ingredients

Speciality

Commodity

2323

From bulk to more speciality products

Speciality products for

- Chocolate

- Baby food

- Bakery

- Cosmetic

- Acquisitions

23Interim Report Q4 and full year 2009

From

Speciality

Commodity

2424

From bulk to more speciality products

Speciality products for

- Chocolate

- Baby food

- Bakery

- Cosmetic

- Acquisitions

24Interim Report Q4 and full year 2009

To

252525

CBEVolumes

2009 2010 2011 2012827 MSEK

FICommodity

FISpeciality

CBEmargins

CBEVolumes

FICommodity

FISpeciality

Synergies

CBEmargins CBE

Volumes

FICommodity

FISpeciality

Synergies

CBEVolumes

FICommodity

FISpeciality

Synergies

CBEmargins

EBIT – Building blocks

Synergies

CBEmargins

New products

New products

New products

25Interim Report Q4 and full year 2009

Future prospects

AAK is today a company with a stronger balance sheet and a good balance between the business areas.

The cost rationalisation programme and the working capital improvement project are being executed according to plan.

Volumes for speciality products are expected to continue to increase in Food Ingredients as well as Chocolate & Confectionery Fats. There remains, however, a general uncertainty about the impact of excess supply capacity in the industry and about lower demand as a consequence of the global recession.

Despite some market uncertainty AAK sees growth opportunities in all business areas. Organic growth for speciality products, in combination with a selective acquisition strategy, is our way forward.

Interim Report Q4 and full year 2009 26

Interim Report Q4 and full year 2009 2727

New President and CEO for AarhusKarlshamn AB

Arne Frank has been appointed as President and CEO for AAK as from April 6, 2010.

He is currently the Chairman of the Board of Carl Zeiss Vision and was also the CEO of the company until recently.

Arne Frank’s previous career includes being the CEO of TAC for many years and of the division of the Schneider Group that TAC became a part of after the French acquisition.

28Interim Report Q4 and full year 2009 2828

AAKThe first choice for

value-added vegetable oil

solutions

28

Appendix

Jerker Hartwall CEO

Anders Byström

CFO

Interim Report Q4 and full year 2009 30

Cocoa Butter

0

10000

20000

30000

40000

50000

60000

SEK

/tonn

e

Cocoa Butter

31Interim Report Q4 and full year 2009 3131

CBE Margin Elements

CBE Margin

Cocoa Butter price Raw material costs and crop

Capacity utilization in the industry

Interim Report Q4 and full year 2009 32

The CBE market growth

High

Medium

Low

Source: CBE market data is based on AAK’s internal analysis as there are no official data available.

33Interim Report Q4 and full year 2009 33

Raw material price development

0

2000

4000

6000

8000

10000

12000

SEK

/ton

Raw material prices -Palm, rapeseed and soyabean

Rapeseed Palm Soyabean

34Interim Report Q4 and full year 2009 34

Trends in Food Ingredients market

Lowest costs

Regional business

Health

•Non-trans

•Low sat

35Interim Report Q4 and full year 2009 35

Growth –

Bulk products Speciality solutions

Volumes

Croda Food Service

Advanced LipidsRapsona

Lion Food

1 >100Margin Index

36Interim Report Q4 and full year 2009 36363636

Accumulated IAS 39 effect since the merger

SEK +578 million in 2009