Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (2017)
19 slides from Aak Ab's investor day presentation, 2017
Slide 1: Asia update – special focus area China
Torben Friis Lange President Asia and Chairman Global Sourcing and Trading Asia update special focus area China The Co-Development Company
Slide 2: Agenda
Agenda 1 AAK Asia evolution 2 Updates: Japan, India and Turkey 3 Macroeconomic landscape in China 4 Market landscape: Customers and consumers in China 5 AAK China capabilities 6 Business performance 7 AAK China in the coming years 2 The Co-Development Company
Slide 3: AAK Asia Evolution
AAK Asia Evolution 2011 2013 2015 2017 China China India China sales office Innovation Center AAK Kamani Zhangjiagang AAK in Asia 1890s, 1930s Mid-1990 2000 2013 2014 2016 2018 Sourcing Malaysia Australia Turkey Singapore Japan Singapore sales office sales office S&T AAK Miyoshi Innovation Center As
Slide 4: Update – Japan
Update – Japan Created JV early 2016: AAK Miyoshi Japan Production facilities for AAK, first phase of products was developed during 2016 First customer approvals and deliveries in 2017 Customer dialogues, introducing AAK’s products in the Japanese market Yearly technical seminar with participating b
Slide 5: Update – India
Update – India GDP growing at 7% Private consumption led GDP growth Per capita income expected to double by 2025; drive consumption growth in snacks, dairy and outside home meals Investments in capacity and innovation capabilities Strong engagement with multinationals and local customers on co-devel
Slide 6: Update – Turkey
Update – Turkey GDP growing at 5% Consumer confidence Growth in food/special foods High growth in Artisan products Co-development strategy with multinationals in Turkey and local producers increased wins in projects Serving more than 7,500 various end customers in Foodservice AAK Academies all aroun
Slide 7: Special focus area China
Special focus area China The Co-Development Company
Slide 8: Speciality and semi-speciality oils and fats market is projected to grow at 8% p.a.
Speciality and semi-speciality oils and fats market is projected to grow at 8% p.a. in the next five years China speciality and semi-speciality oils and fats market 1,310,000 MT AAK China – significant growth opportunities and many challenges 8 The Co-Development Company
Slide 9: Macroeconomic landscape: China economic environment
Macroeconomic landscape China economic environment… v v v v GDP growth Industrial production Inflation Unemployment Retail sales China GDP growth 6.9% this year, it’s still a very robust economy 19th National People Congress has set the tone for the next five years Consumer confidence has been stead
Slide 10: Market landscape: Customers and consumers
Market landscape Customers and consumers China population 1,379 million Packaged food market 2017: US$ 232 billion CAGR 2012–17: (6,6%) Overall growth in line with GDP growth Consumers become more demanding in terms of product quality, fast delivery and access channels Manufacturers start to focus o
Slide 11: Market landscape: Customers and consumers forecast 2020
Market landscape Customers and consumers Forecast 2020 Packaged foods $ 264 b Biscuits & Dairy Baked goods Confectionery Others Snackbars $ 62 b $ 39 b $ 17 b $ 89 b $8b Infant Nutrition Edible olis Ice cream & $ 26 b $ 15 b Frozen desserts $8b Source: Euromonitor - Forecast 2020 11 The Co-Developme
Slide 12: Market landscape China
Market landscape China Key product categories 2017, growth and forecast Baked goods Ice cream Biscuits 12,3% 1,4% 1% 10,7% 1,9% 2,7% Confectionery Infant Nutrition Dairy 0.4% 7,1% 2,5% 3,1% 6,2% 4,1% Volume 2017 Volume CAGR 2017-2021 Source: Euromonitor - China 12 The Co-Development Company
Slide 13: Market landscape – China: Customers and consumers trends and drivers
Market landscape – China Customers and consumers trends and drivers… Consumers Customers Affordability Affordable Portfolio High quality AAK Price stability Aspiration The Co-Development Productivity, “Accessible” efficiency & savings Company Health & Wellness Co-Development Nutrition & Balance New
Slide 14: Play to win
Play to win Focus on multinationals and national/segment leaders Innovation with speed based on AAK’s brand and reputation on quality… Key customer priority Delivering value-adding solutions Strong concepts based on health, nutrition and functionality Focus on specialities Zhangjiagang state-of-the-
Slide 15: Building Co-Development partnerships through AAK ACADEMY
Building Co-Development partnerships through AAK ACADEMY™ Tradeshows FIC 2017 and seminar Bakery China 2017 in Shanghai Academy FIC Academy Infant Nutrition Academy CCF Academy Bakery Academy Distributor conference 15 The Co-Development Company
Slide 16: Market landscape: 2018–2021 promising growth ahead
Market landscape 2018 – 2021 promising growth ahead… Source: Euromonitor 16 The Co-Development Company
Slide 17: AAK China: Business performance and highlights
AAK China Business performance and highlights CAGR: 119% 17 The Co-Development Company
Slide 18: AAK China: Volume Ramp-Up
AAK China Volume Ramp-Up 120 000 100 000 80 000 60 000 40 000 20 000 0 2016 2017 2018 2019 2020 57% CAGR Vol in MT. 18 The Co-Development Company
Slide 19: Thank you!
Thank you! www.aak.com The Co-Development Company