Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (October 2006)
23 slides from Aak Ab's investor day presentation, Oct 3, 2006
Slide 1: Business Area Chocolate and Confectionery Fats (CCF)
Business Area Chocolate and Confectionery Fats (CCF) Jørgen Balle, President
Slide 2: The first choice for value added vegetable oil solutions
The first choice for value added vegetable oil solutions Business Area Chocolate & Confectionery Fats 2 Capital Market Day, October 3, 2006
Slide 3: Global macro consumption and growth rates of chocolate confectionery products
Global macro consumption and growth rates of chocolate confectionery products 3000 2500 1000 metric tonnes 2000 1500 1000 500 0 EU25 E Europe N Am L Am Asia Af/ME CAGR CAGR CAGR CAGR CAGR CAGR 1.4% 3.6% 1.6% 3.2% 4.4% 6.0% Source: Euromonitor 2006. Growth rates 2006-11. Business Area Chocolate & Con
Slide 4: CCF's customers and competitors
CCF’s customers and competitors • Customers in global market • 60% represented by “the big 6” •Mars, Nestlé, Cadbury, Kraft, Ferrero, Hershey • 20% represented by the regional leaders • Competitors • Fuji Oils, Japan • Loders Croklaan, Holland 4 Capital Market Day, October 3, 2006
Slide 5: CCF's products
Price Cocoa- CCF’s products butter CBE CBR • Cocoa-butter alternatives CBS s •CBE is a direct equivalent to f at n g cocoa-butter li Fi l •CBR is an advanced compound Functionality coating. Chocolate CBE •CBS is a compound coating Illexao Oil blends • Filling fats • Chocolate spreads Coatings Filli
Slide 6: CCF is a speciality portfolio
CCF is a speciality portfolio Unit margin* 3.3 SEK/kg High- CBE CBR End CCF Filling Low- High- avg. Fats End Low- End CBS End Filling CBS Fats Bulk oils Speciality Source: AAK Annual Report 2005. * Unit 6 margin = Gross contribution / volume Capital Market Day, October 3, 2006
Slide 7: CCF's product drivers: CBE
CCF’s product drivers CBE Drivers: Cocoa Butter Equivalents Functionality: 100% compatibility, Non trans Cocoa- Heat stability butter Shelf life Legislation: Usage 5% and unlimited Global players globalise their brands, recipes, and supply chain (cost focus) Emerging economies -> Small/medium price
Slide 8: The CBE market is the main CCF growth driver
The CBE market is the main CCF growth driver 300 CBE volume - index 250 CBE margin - index 200 Index 150 Double-digit growth rates in total CBE market: 100 CAGR 2000-2005 = 10+% CAGR 2006-2009 = 10+% 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: CBE market data is based on AAK intel
Slide 9: CCF Fractionation Investment
CCF Fractionation Investment • CBE is rapidly growing and AAK is the global leader. • 150 MSEK investment in the world’s largest plant. • Site specialisation and major synergies. 9 Capital Market Day, October 3, 2006
Slide 10: CCF's product drivers: CBR
CCF’s product drivers Cocoa Butter CBR Drivers: Equivalents Functionality: 20-30% CB compatibility Heat stability Cocoa- Shelf life butter Major price discount to CB -> 3% annual growth Cocoa Butter AAK leading global market share Replacers 10 Capital Market Day, October 3, 2006
Slide 11: CCF's product drivers: CBS
CCF’s product drivers Cocoa Butter Equivalents CBS Drivers: Functionality: No compatibility Cocoa- Non trans butter Shelf life Major price discount to CB Cocoa Butter -> 3+ % annual growth Replacers AAK leading global market share Cocoa Butter Substitutes 11 Capital Market Day, October 3, 2006
Slide 12: CCF's product drivers: filling fats
CCF’s product drivers Cocoa Butter Equivalents Cocoa- Filling butter Fats Cocoa Butter Replacers Filling fat drivers: Cocoa Butter Functionality: Substitutes Shelf life Mouth feel New generation! Prices between CBS and CBE 12 Capital Market Day, October 3, 2006
Slide 13: Understanding shea kernel crop West-African wild crop
Understanding shea kernel crop West-African wild crop 1,800,000 mt crop (wild shea kernels) 1,200,000 mt uncollected shea kernels 600,000 mt collected by locals 400-500,000 mt domestic consumption 100-200,000 mt exported 5-10% cosmetics and 90-95% confectionery products Source: FAO, African export s
Slide 14: CCF's main strategic actions
CCF’s main strategic actions Shea Trees Locals Village Work Middlemen Market Place AarhusKarlshamn AarhusKarlshamn World class sourcing •Crop assessment •Collection stimulation •Bush purchase centers •Logistic network •Port and shipping flexibilities •Best practice, scale processing 14 Capital Marke
Slide 15: CCF's industry driving forces – in summary
CCF’s industry driving forces – in summary • Industry driving forces; • Emerging economies! • Legislation/new generation • Substitution of cocoa- butter in chocolate • Trans / Friendly labelling • Global players’ cost focus (brand globalisation) 15 Capital Market Day, October 3, 2006
Slide 16: CCF's new generation of speciality fats
CCF’s new generation of speciality fats Deli Air - a unique, patented filling fat with the best whipping properties on the market 16 Capital Market Day, October 3, 2006
Slide 17: CCF's future
CCF’s future • Market development & positioning •CBE growth •Global market coverage •CBA manufacturing scale •Shea backward integration • Selective product development •Trans-free and filling fats functionalities. 17 Capital Market Day, October 3, 2006
Slide 18: Lipids for Care Cosmetics
Lipids for Care Cosmetics Jørgen Balle, President 18 Capital Market Day, October 3, 2006
Slide 19: LfC's market position and business drivers
LfC’s market position and business drivers Global leader within speciality fats for the cosmetics industry Driving forces • Vegetable raw materials • Shea boom • “Well being” aspects. 19 Capital Market Day, October 3, 2006
Slide 20: LFC presents the Lipex Shea Butter Family
LFC presents the Lipex® Shea Butter Family Liquid Super enriched Soft & high melting Solid Improved crystallisation High stability Water dispersible “Always let The Lipid Expert assist you” 20 Capital Market Day, October 3, 2006
Slide 21: LFC's customers and competitors
LFC’s customers and competitors • Customers in global market • 50% represented by “the big 10” : L’Oreal, P&G, Unilever, Estée Lauder …. • 30% represented by the regional leaders • Competitors • Speciality chemical companies: Cognis, Croda …… • Traders 21 Capital Market Day, October 3, 2006
Slide 22: LFC's future
LFC’s future • Market development & positioning •Shea growth •Global market coverage •Move forward in the value chain (sell direct) • Selective product development •Expand “shea family” 22 Capital Market Day, October 3, 2006
Slide 23: CCF and LfC synergies
CCF and LfC synergies • Shea as raw material • Fractionation technology • Global market coverage • Selective product development 23 Capital Market Day, October 3, 2006