Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (2014)
13 slides from Aak Ab's investor day presentation, 2014
Slide 1: Infant Nutrition
Karel Stoschek Director Infant Nutrition Infant Nutrition
Slide 2: Infant Nutrition – January to September
Infant Nutrition – January to September 70 140 60 66 120 123 50 55 100 52 104 40 48 80 82 30 60 32 59 20 40 16 10 20 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Volumes ('000 MT) Operating profit (SEK million) 2.50 2.00 2.24 1.50 1.58 1.58 1.00 1.23 0.50 0.50 0.00 2010 2011 2012 2013 2014
Slide 3: The first 1,000 days
The first 1,000 days Pregnancy Breast feeding Baby Toddlerhood Infant milk formula includes all essential nutrients and energy for infants to grow and develop normally Vegetable oils and fats provide the essential building blocks for the body, including the brain and the eyes Oils and fats acc
Slide 4: Global baby food retail value
Global baby food retail value Estimate 2014 70 Special formula 8% 2.7US$ B. Premature, allergy 60 5.4US$ B. Standard formula 50 8.9US$ B. 30% 0-6 months 40 Follow-on formula 23% 61.8US$ B. 6-12 months 30 72% Toddler formula 44.8US$ B. 20 39% +12 months 10 0 Global market Other baby Dried baby Prepar
Slide 5: Infant milk formula market
Infant milk formula market Estimate 2014 2.4 million MT/yr infant milk formula ~660,000 MT /yr oils & fats Consolidated market: Top 4 companies have 57% share Top 10 companies have 73% share 29% global value share Local companies increasing share >100 brands in the market 5 Source: Euromoni
Slide 6: China: new infant milk powder policy
China: new infant milk powder policy December 2013 May 2014 September 2014 August 2013 China FDA revised version China FDA published the list of NZ companies got import “Fonterra” of policy companies that passed the audit licences back to China China FDA announced they will review the IMF production
Slide 7: China market remains attractive
China market remains attractive China infant milk formula retail value China infant milk formula - brand share Future consolidation expected 25 100% 20 22,3 % 25 80% Other $ Bn 15 60% 76% 17 10 40% 5 20% 8 24% Top-5 brands 0 0% 2010 e2014 e2016 IMF China infant milk formula total volume 1000 Marke
Slide 8: Go to market
Go to market The first choice for The natural choice for value-added vegetable healthy development A clinically-proven ingredient oil solutions One step closer to human milk Single oils Customised oil blends Organic (approved by COFCC) The ideal combination MCT Security from start to fin
Slide 9: AAK Customer case
AAK Customer case End Toll producer Brand consumer Owner Customer Pain: AAK co-development: With Brand owner: With Brand owner: Food safety Sourcing the raw materials Tailored fat composition Global view on market CSR Developing an unique blend With Toll producer: With Toll produ
Slide 10: Expanding organic category
Expanding organic category Organic baby food market is strong in EU New launches – Organic baby food 120 Fast growing in China and Asia 100 80 AAK is the only company in Europe to 60 have a certificate from COFCC to produce 40 vegetable oils for organic infant milk 20 formulas for China 0 2010 2011
Slide 11: Average annual volume growth
Average annual volume growth 2010-2016 (Euromonitor total milk formula volume growth) Global growth rate: +7% by volume +1% +4% -1% +16% +7% +6% +4% +10% 11 Source: Euromonitor International, Sep 2014
Slide 12: AAK increasing market share
AAK increasing market share CAGR (MT) 2010 - 2014 20% 15% 10% 5% 0% Market AAK 12
Slide 13: AAK position for future growth
AAK position for future growth Commitment on quality Category Growth Trends Continues investment in customer co-development Economic growth and job creation Balanced portfolio to match customer needs: Semi-speciality blends Increase number of women in workforce Speciality blends Speciali