Aak Ab · OMXSTO:AAK
Aak Ab — Shareholder Meeting (May 2017)
32 slides from Aak Ab's shareholder meeting presentation, May 17, 2017
Slide 1: Annual General Meeting May 17, 2017
Fredrik Nilsson CFO & Acting CEO Anne Mette Olesen Chief Marketing Officer Annual General Meeting May 17, 2017 The Co-Development Company
Slide 2: Agenda
Agenda Key events 2016 Result 2016 First quarter 2017 New company program 2 The Co-Development Company
Slide 3: Key events 2016
Key events 2016 Acquisition New production facilities in Sustainability Brazil and China New company program/New focus areas 3 TheThe Co-Development Company Co-Development Company
Slide 4: Global footprint and leading positions
The Co-Development Company Talented More than 3.000 Employees Production and 20 Customization plants 25 Sales offices Sales in 100 countries Global footprint Leading positions 4 The Co-Development Company
Slide 5: Acquisition of California Oils Corporation
Acquisition of California Oils Corporation Transform AAK into a true national speciality and semi-speciality edible oils company in the US Bring AAK’s customer co-development approach to a national level in the US Focus on cross-selling AAK products, leveraging customers and customer co-development
Slide 6: Inauguration of new factory in Brazil
Agenda Inauguration of new factory in Brazil New speciality and semi-speciality edible oils factory Investment: SEK 400 million, total capacity of 100,000 MT Major step forward for our global growth strategy Production facility for speciality and semi-speciality edible oils within Bakery, Dairy and
Slide 7: Investing in China – AAK Zhangjiagang
Investing in China – AAK Zhangjiagang New speciality and semi-speciality edible oils factory Investment: SEK 400 million, capacity of 100,000 MT Production facility for speciality and semi-speciality edible oils within Bakery, Dairy and Chocolate & Confectionery AAK Zhangjiagang delivered its first
Slide 8: Sustainable growth
Sustainable growth Key progress during 2015–2016 -6.1% Energy consumption per unit processed -2.2% Water consumption per unit processed -6.7% Water discharge per unit processed -4.9% Net direct CO₂ emissions 8 TheThe Co-Development Company Co-Development Company
Slide 9: Progress on sustainable palm oil – Traceability
Progress on sustainable palm oil – Traceability Covering palm oil, palm kernel oil and derivatives 9 TheThe Co-Development Company Co-Development Company
Slide 10: Progress on sustainable palm oil – Risk Management
Progress on sustainable palm oil – Risk Management 10 The Co-Development Company
Slide 11: Progress on sustainable palm oil – Supplier Engagement
Progress on sustainable palm oil – Supplier Engagement Strong engagement with suppliers Founding member and continuing on the RSPO Board Working on potential smallholder projects as they account for over 40% of palm oil production 11 The Co-Development Company
Slide 12: Progress on sustainable palm oil – Education & Communication
Progress on sustainable palm oil – Education & Communication 12 The Co-Development Company
Slide 13: Continued growth within AAK's women's groups program
Continued growth within AAK’s women’s groups program 13 TheThe Co-Development Company Co-Development Company
Slide 14: Full year 2016
Full year 2016 Volume +7% ’000 MT 1,966 (1,833) Organic +2% Sales SEK million 22,057 (20,114) +10% EBIT* SEK million 1,615 (1,411) +14% EBIT* per kilo SEK 0.82 (0.77) +6% EPS SEK 23.71 (22.17) +7% Net debt SEK million 2,620 (2,083) +26% * Adjusted for non-recurring items 14 The Co-Development Compan
Slide 15: AAK year-to-date vs. market growth
AAK year-to-date vs. market growth 15 The Co-Development Company
Slide 16: Food Ingredients
Food Ingredients 16 The Co-Development Company
Slide 17: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats 17 The Co-Development Company
Slide 18: First quarter 2017 – all-time high operating profit for a first quarter
First quarter 2017 – all-time high operating profit for a first quarter Volume +10% ’000 MT 515 (467) Organic +5% Sales SEK 6,677 (4,963) +35% million EBIT SEK 431 (381) +13% million EBIT per kilo SEK 0.84 (0.82) +2% EPS SEK 6.47 (5.56) +16% Net debt SEK million 3,168 (Dec 2016: 2,620) +21% 18 The C
Slide 19: Food Ingredients Q1 2017
Food Ingredients Q1 2017 Organic volume growth Operating profit Operating profit per kilo +2% +9% -1% Operating profit increased to SEK 249 million (229) After some challenging quarters the Bakery segment was back to organic growth in several important regions, however the European market remained a
Slide 20: Chocolate & Confectionery Fats Q1 2017
Chocolate & Confectionery Fats Q1 2017 Organic volume growth Operating profit Operating profit per kilo +17% +23% +6% Operating profit increased to SEK 196 million (159) There was continued strong organic volume growth for both speciality and semi- speciality products, with several showing exception
Slide 21: Three years with AAKtion
Three years with AAKtion Stronger sales platform, improved product mix, growing with global customers More and improved customer co- development driving value Improved innovation through prioritization and stronger capabilities TROPICAO launched and stronger NPD Strengthened supply chain built on hi
Slide 22: Management ambition 2010–2016
Management ambition 2010–2016* Ambition probably reached in 2016 but with Acquisitions some support of: Organic growth Productivity M&A Operating profit 2010 Translation differences 400 Much larger investments in organization for: Organic growth, particularly in China and 400 Brazil R&D, people and
Slide 23: Follow-up on the Management ambition
Follow-up on the ”Management ambition”* SEK million *As expressed at the Capital Market Day November 10, 2010 and at fixed exchange rates 23 The Co-Development Company
Slide 24: The Co-Development Company
24 The Co-Development Company
Slide 25: Go To Market, Operational Excellence, Innovation, People
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 People 25 The Co-Development Company
Slide 26: New focus area: Special Nutrition
New focus area: Special Nutrition INFANT NUTRITION SENIOR NUTRITION MEDICAL NUTRITION New markets – New opportunities – New solutions 26 The Co-Development Company
Slide 27: New focus area: Plant-based Dairy
New focus area: Plant-based Dairy Skip a step Grow the crops Feed the cows Produce the food 27 The Co-Development Company
Slide 28: Investing for future growth
Investing for future growth 1500 1250 1000 SEK million 750 500 250 0 2010 2011 2012 2013 2014 2015 FC2016 FC2017 CAPEX Acquisitions 28 The Co-Development Company
Slide 29: AAK's position in growing markets
AAK’s position in growing markets North America Asia Pacific Strong position with Invested in future growth through national wide presence greenfield in China and a perfect through recent acquisition match between surging population in India and our stake in AAK Kamani South Latin America Invested f
Slide 30: Management ambition for the coming years
Management ambition for the coming years Innovation Organic & Average 10% growth Mix year-over-year EBIT improvement* & Supporting a good and consistent Selective Efficiency EPS improvement acquisitions * Excluding acquisitions and at fixed FX 30 The Co-Development Company
Slide 31: Concluding remarks
Concluding remarks 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 are: The continued positive underlying development in Food Ingredients A cont
Slide 32: www.aak.com
www.aak.com The Co-Development Company