AAK’s Interim report for the first quarter 2016 – all-time high operating profit for a first quarter

· A record-high operating profit of SEK 381 million (321) was achieved, an
improvement of 19 percent. The currency translation impact was negative SEK 10
million (positive 36).
  · Total volumes continued to grow nicely and were up 5 percent. Organic volume
growth was flat due to declining commodity volumes in Food Ingredients. However,
the demand for speciality and semi-speciality products was strong, generating
organic volume growth of 2 percent.
  · Food Ingredients improved by 17 percent, reaching SEK 229 million (195). The
picture between the different segments was, however, very mixed.
- The Dairy segment continued the strong trend from the second half of 2015 and
again reported double-digit organic volume growth.
- The Bakery segment had a challenging quarter globally with a negative volume
development.
- Our InFat® business through Advanced Lipids AB, a joint venture of AAK and
Enzymotec, reported double-digit volume growth.
- Infant Nutrition product range Akonino® also showed double-digit volume growth
but at an even higher rate.
- Foodservice reported organic volume growth, with good development particularly
in the Nordics and the UK.

  · Chocolate & Confectionery Fats reported a result of SEK 159 million (136),
an improvement of 17 percent.
- Total volumes in the quarter increased by 17 percent and organic volume growth
was 11 percent. In addition, the business area had a favorable development of
the product mix.
- After two years of severely deteriorating market conditions in Russia and
Ukraine, the first quarter showed strong growth, but from a low level.
- High-end products continued the strong trend from the first three quarters of
last year and again reported double-digit organic volume growth.

  · Technical Products & Feed improved its operating profit by 26 percent,
reaching SEK 29 million (23). This was mainly due to a positive development of
the fatty acids business.
  · Earnings per share increased by 9 percent, to SEK 5.56 (5.11). Increased
financial costs due to extended borrowings in high-interest rate countries and
higher tax costs had an unfavorable impact on earnings per share.
  · Calculated on a rolling 12 months basis, Return on Capital Employed (ROCE)
was 16.0 percent (15.7 percent at December 31, 2015).
  · The first very limited volumes from our new factory in Brazil have been
delivered during the first quarter. To be able to deliver the whole product
range a gradual ramp-up will continue during the upcoming quarters. Our China
greenfield project continues to develop according to plan.

Concluding remarks:
“Based on AAK’s customer value propositions for health and reduced costs, and
our customer product co-development and solutions approach, we continue to
remain prudently optimistic about the future”, says Arne Frank, CEO and
President, AAK Group. “The main drivers are the continued positive underlying
development in Food Ingredients and the continued improvement in Chocolate &
Confectionery Fats.”
The Interim report for the first quarter 2016 will be presented today, April 27,
2016 at 1 p.m. CET at a Press & Analyst telephone conference. For participation,
please see instructions under the Investor tab at the AAK website, www.aak.com.
For further information, please contact:
Fredrik Nilsson
CFO
Mobile: +46 708 95 22 21
E-mail: fredrik.nilsson@aak.com
The information is that which AAK AB (publ.) is obliged to publish under the
provisions of the Stock Exchange and Clearing Operations Act and/or the Trading
in Financial Instruments Act. The information was released to the media for
publication on April 27, 2016 at 11:00 a.m. CET.
AAK is a leading provider of value-adding vegetable oils & fats. Our expertise
in oils & fats within food applications, our wide range of raw materials and our
broad process capabilities enable us to develop innovative and value-adding
solutions across many industries – Chocolate & Confectionery, Bakery, Dairy,
Infant Nutrition, Foodservice, Personal Care, and more. AAK’s proven expertise
is based on more than 140 years of experience within oils & fats. Our unique co
-development approach brings our customers’ skills and know-how together with
our own capabilities and mindset for lasting results. Listed on the NASDAQ OMX
Stockholm and with our headquarters in Malmö, Sweden, AAK has 19 different
production facilities, sales offices in more than 25 countries and more than
2,700 employees. We are AAK – The Co-Development Company.