Aak Ab · OMXSTO:AAK
Aak Ab — Shareholder Meeting (May 2018)
31 slides from Aak Ab's shareholder meeting presentation, May 30, 2018
Slide 1: Annual General Meeting May 30, 2018
Fredrik Nilsson Chief Financial Officer Anne Mette Olesen Chief Marketing Officer Annual General Meeting May 30, 2018
Slide 2: Agenda
Agenda 1 Business performance 2017 2 Key events 2017 3 Our company program, The AAK Way 4 Business performance Q1, 2018 5 Sustainability update 6 Trends and ambitions 2 The Co-Development Company
Slide 3: The Co-Development Company
The Co-Development Company More than 3,300 employees 20 Production and Customization Plants 25 Sales Offices Sales in 100 countries Global footprint Leading positions 3 The Co-Development Company
Slide 4: Business performance – 2017
Business performance – 2017 HIGHLIGHTS GROWTH & RETURNS 7th consecutive year 2017 of record-high operating profit Volume Operating profit Strong double-digit 2,129,000 MT SEK 1,786 million profit development in (up 10%, organically 5%) (up 11%) Food Ingredients Double-digit organic volume and profit
Slide 5: Investments for future growth
Investments for future growth (MSEK) 1500 1250 1000 750 500 250 0 2010 2011 2012 2013 2014 2015 2016 2017 FC 2018 CAPEX Acquisitions 55 The Co-Development Company
Slide 6: Food Ingredients 2017
Food Ingredients 2017 6 The Co-Development Company
Slide 7: Chocolate & Confectionery Fats 2017
Chocolate & Confectionery Fats 2017 7 The Co-Development Company
Slide 8: Technical Products & Feed 2017
Technical Products & Feed 2017 *2013 and 2014 adjusted for Binol divestment. 8 The Co-Development Company
Slide 9: Key events 2017
Key events 2017 9 The Co-Development Company
Slide 10: The AAK Way: Go to Market, Operational Excellence, Innovation
Innovation Go to Operational Special Focus Market Excellence Areas AAK Way of Selling Sourcing Excellence Special Nutrition Customer Cost Effective & Dairy+ Co-Development Flexible INNOBO-Products World Class Delivery People 10 The Co-Development Company
Slide 11: Go to Market
Go to Market AAK Way of Selling Customer Co-Development Developed next level sales training Developed first wave of e-learning modules Prepared Global Customer Survey Global mapping of knowledge sharing tools Volume Pipeline Win Value +9% +30% 11 The Co-Development Company
Slide 12: Operational Excellence
Operational Excellence Sourcing Excellence Cost Effective & Flexible World Class Delivery Significant cost savings Continuous improvement based on Kaizen Improved progresses Progress on multi-oil sustainability Global best practice teams 12 The Co-Development Company
Slide 13: Special Focus Areas
Special Focus Areas Special Nutrition Dairy+ INNOBO – Products Launched Special Nutrition globally Improved Customer Innovation set up Global Foodservice Customer First sales of Akovita® Prepared launch of plant-based dairy Innovation team solution Mapped all products globally Volume Volume Volume +
Slide 14: The AAK Way
The AAK Way Innovation People Developed and launched upgraded Employee Engagement innovation process Survey +7% Leadership training globally 14 The Co-Development Company
Slide 15: Business performance Q1, 2018
Business performance Q1, 2018 HIGHLIGHTS GROWTH & RETURNS 29th consecutive 2018 quarter of record-high operating profit Volume Operating profit Strong organic volume 551,000 MT SEK 460 million growth continued (up 7% y/y) (up 7% y/y, up 9% y/y*) Gaining market shares Earnings per share increased by
Slide 16: Business areas Q1, 2018
Business areas Q1, 2018 Food Ingredients Chocolate & Confectionery Fats Technical Products & Feed Organic volume Organic volume Organic volume growth growth growth +9% +4% +4% Operating Operating Operating profit profit profit +9% -3% +89% Operating profit Operating profit Operating profit per kilo
Slide 17: Sustainable growth – House of Sustainability
Sustainable growth – House of Sustainability 17 The Co-Development Company
Slide 18: Our Suppliers – Responsible sourcing
Our Suppliers – Responsible sourcing AAK Responsible Sourcing Policy complements the AAK Group Supplier Code of Conduct applies to all of AAK’s procurement of vegetable oils and related raw materials is based on the principles of: Legal Anti- Human Labour Housing Land rights and Environment Smallhol
Slide 19: Our Suppliers – Responsible sourcing
Our Suppliers – Responsible sourcing 19 The Co-Development Company
Slide 20: Sustainable palm – strong engagement with our suppliers
Sustainable palm – strong engagement with our suppliers 20 The Co-Development Company
Slide 21: Palm – contributing to the SDGs
Palm – contributing to the SDGs Smallholder livelihoods Traditional food crops RSPO certification HCV, HCS, no peatland Forever Sabah 21 The Co-Development Company
Slide 22: Shea – contributing to the SDGs
Shea – contributing to the SDGs Pre-financing and banking Investing in gardens Affording medication Logistics and warehouses Rocket stoves 22 The Co-Development Company
Slide 23: Our Planet – AAK's resource efficiency
Our Planet – AAK’s resource efficiency Reduced energy consumption Reduced direct CO2-emissions Reduced water consumption over the past 5 years -13.1% over the past 5 years -17.4% over the past 5 years -9.5% 23 The Co-Development Company
Slide 24: Trends
Trends Indulgence We focus on the global key Personalization drivers that affect the behavior of end consumers. Trust Health Convenience 24 The Co-Development Company
Slide 25: Strong business drivers
Strong business drivers World population is increasing From 7.6 billion in 2017 estimated 8.6 billion 2030 13% By 2030, 5 billion will be living in urban areas – up from 3.5 billion 43% 44% of all population growth is in Asia Global middle class population will grow by 150% Sources: UN projections;
Slide 26: Our long-term management ambition
Our long-term management ambition CAGR after 15 months (Jan 2017 – Mars 2018) +11% Average 10% +13% year-over-year EBIT improvement* & +8% Supporting a good and consistent EPS improvement +1% -1% *Excluding acquisitions and at fixed FX 26 The Co-Development Company
Slide 27: AAK investment case highlights
AAK investment case highlights 1 2 3 4 Above the Average 10% Strong Very strong market year-over-year balance sheet underlying operating profit supporting growth drivers growth improvement* further growth Indulgence Health Trust Personalization Convenience * Excl. acquisitions and fixed FX 27
Slide 28: Concluding remarks
Concluding remarks We continue to remain prudently optimistic about the future. 28 The Co-Development Company
Slide 29: Johan Westman new President and CEO for AAK
Johan Westman new President and CEO for AAK Born in 1973 Master’s degree in Industrial Engineering from Chalmers University of Technology in Gothenburg, Sweden Close to 20 years of experience in management consulting and from the automotive supplier industry President of the Finnveden Metal Structur
Slide 30: First impressions
First impressions 30 The Co-Development Company
Slide 31: Thank you!
Thank you! www.aak.com