Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2015)
28 slides from Aak Ab's investor day presentation, Nov 18, 2015
Slide 1: Capital Market Day November 18, 2015
Arne Frank, CEO Capital Market Day November 18, 2015
Slide 2: Forward-looking statement
Forward-looking statement This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements in
Slide 3: Agenda
Agenda AAKtion Financial update Growth markets – China/Brazil TROPICAO™ Q&A 3 The Co-Development Company
Slide 4: AAK Speakers
AAK Speakers Arne Frank Fredrik Nilsson Torben Friis Lange Gerardo Garza René Schou CEO CFO President AAK Asia President AAK Global Marketing Director South Latin America CCF 4 The Co-Development Company
Slide 5: September YTD
September YTD Volume Operating profit* 1,342,000 MT SEK 1,023 million (up 4% organically y/y) (up 15% y/y, up 4% y/y**) Operating profit per kilo* ROCE R12M SEK 0.76 kg 15.8% (up 7% y/y, unchanged y/y**) (down 0.2% since December 2014) * Excluding non-recurring items ** Fixed FX and comp. units 5 Th
Slide 6: FI – January to September
FI – January to September + 11% + 14% - 3% 6 The Co-Development Company
Slide 7: FI – January to September
FI – January to September Volume EBIT/kilo EBIT 7 The Co-Development Company
Slide 8: CCF – January to September
CCF – January to September - 2% + 26% + 29% 8 The Co-Development Company
Slide 9: Cocoa butter price
Cocoa butter price For information regarding cocoa and cocoa butter please refer to information at www.icco.org 9 The Co-Development Company
Slide 10: Since last Capital Market Day
Since last Capital Market Day Infant Nutrition AAKtion Acquisitions & partnerships Product development 10 The Co-Development Company
Slide 11: Infant Nutrition
Infant Nutrition + 16% + 30% + 12% 11 The Co-Development Company
Slide 12: Infant Nutrition – the market
Infant Nutrition – the market Continuing to be attractive growth market: 2010-2015 average value growth 11% (total milk formulas) China opening up the one-child policy Europe & Australia/NZ are large sources of finished products to China New capacity build-up Increased number of joint ventures creat
Slide 13: Infant Nutrition – the market
Infant Nutrition – the market Consumer trend towards premium products Increased spend on premium nutrition E-commerce channel is driving category growth Organic oils in the mature markets Toddler milk formulas Fastest growing segment Driven by mature and emerging markets Source: Euromonitor Internat
Slide 14: Infant Nutrition – INFAT®
Infant Nutrition – INFAT® Marketed by Advanced Lipids AB (a joint venture of AAK and Enzymotec) New markets: the US, Mexico, South Africa and Australia Global expansion with regional blending China, directly and indirectly, still the main market 14 The Co-Development Company
Slide 15: Infant Nutrition – Akonino®
Infant Nutrition – Akonino® Continue investment in customer co-development and quality On-going global expansion New locations: China, Brazil, India Capacity expansion in EU Akonino® PL Expansion of speciality ingredient portfolio Unique lipid ingredient Used in infant nutrition and nutrition formul
Slide 16: AAK has acquired the assets of Belgian nutritional ingredient supplier
AAK has acquired the assets of Belgian nutritional ingredient supplier AAK will restart the operations of TLC (part of the BNLfood Group) Specialized in extracting phospholipids from egg yolk Phospholipids extracted from egg yolk offer additional benefits when included in nutrition formulas and rein
Slide 17: The first choice for value-adding vegetable oil solutions
The first choice for value-adding vegetable oil solutions SALES INNOVATION EXECUTION Sales Innovation Service Customer Co-Development Quality Productivity PEOPLE Ahead of plan On plan Behind plan 17 The Co-Development Company
Slide 18: Talented people, global footprint, leading positions
The Co-Development Company Talented More than 2,700 Employees Production and 19 Customization plants 25 Sales companies Sales in 100 countries Global footprint Leading positions 18 The Co-Development Company
Slide 19: Medium and fast growing markets
Medium and fast growing markets* Nordics USA Asia West Europe CEE Latin America CIS * Management ambition – edible oil volumes 19 The Co-Development Company
Slide 20: High activity level in Asia
High activity level in Asia 20 The Co-Development Company
Slide 21: Acquisition of 51% of Kamani Oil Industries
Acquisition of 51% of Kamani Oil Industries - Leading company within speciality and semi-speciality fats in India Annual volume of 100,000 MT Revenues of approx. SEK 1,000 million 2014 Factory 70 km from Mumbai Administration and sales office in Mumbai Technical expertise and customer co-development
Slide 22: Strategic rationale
Strategic rationale Geographical expansion into important growth market Large and growing population in India Small but rapidly growing chocolate market Increasing urbanization and middle class A local partner is critical to a success in India Kamani’s culture, know-how and positioning is very much
Slide 23: Partnership established in Japan
Partnership established in Japan AAK has established a partnership with Miyoshi Oils & Fats Co. by forming a new company, AAK Miyoshi JP This is particularly interesting for the Chocolate & Confectionery Fats and Bakery segments AAK will own 70 percent of the new company and the other 30 percent wil
Slide 24: Product development – FI
Product development – FI AKOPASTRY HP 400 & 200 High performance puff pastry solutions For industrial puff pastry producers Main value proposition: reduced costs Better lamination structure Better health claims 24 The Co-Development Company
Slide 25: TROPICAO: A tropical revolution in chocolate production
TROPICAOTM A tropical revolution in chocolate production
Slide 26: Management ambition, 2010–2016
Management ambition, 2010–2016* Changes since 2010 Acquisitions Organic growth Larger investments in organization for Productivity organic growth, China and Brazil Operating profit 2010 Increased investments in R&D 400 Situations in Russia and Ukraine 400 800 800 * As expressed at the Capital Market
Slide 27: Conclusion
Conclusion Based on AAK’s customer value propositions for Health and reduced costs Customer product co-development and solutions approach We continue to remain prudently optimistic about the future The main drivers; We are expecting a continued positive underlying development for Food Ingredients We
Slide 28: www.aak.com
www.aak.com