Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2019)
33 slides from Aak Ab's investor day presentation, Nov 20, 2019
Slide 1: Welcome – Capital Market Day
Welcome Capital Market Day November 20, 2019 The Co-Development Company
Slide 2: Business update
Johan Westman President and CEO Business update The Co-Development Company
Slide 3: AAK speakers
AAK speakers Johan Westman Fredrik Nilsson Anne Mette Olesen Torben Friis Lange Marco Oomen Henning Villadsen President and CEO Chief Financial Chief Marketing President Asia and Business Development Business Development Officer Officer incl. CSR Global Sourcing & Director, CCF Director, Dairy Tradi
Slide 4: AAK today
AAK today More than 3,800 Talented Employees More than 20 Production and Customization plants 25 Sales offices Sales in100 countries Production plants Customization plants Sales offices Sourcing operations Global footprint Customer Innovation Centers Leading positions The Co-Development Company
Slide 5: Continued profit growth on the back of a strong Food Ingredients performance
Continued profit growth on the back of a strong Food Ingredients performance HIGHLIGHTS GROWTH & RETURNS Strong trend and improved mix YTD in Food Ingredients Adjusted Our business for plant-based solutions has generated strong Volume operating profit volume and profit growth, although from a small
Slide 6: Steady year-over-year increase in adjusted operating profit
Steady year-over-year increase in adjusted operating profit MSEK 2,200 2,112 2,000 1,956 1,786 1,800 +11% 1,615 1,600 1,411 1,400 1,242 1,200 1,117 996 1,000 911 824 800 600 400 200 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 R12m The Co-Development Company
Slide 7: Food Ingredients
Food Ingredients 2,200 1.00 2,000 0.88 Solutions to the bakery, dairy, foodservice, plant- 1,800 0.77 0.80 0.75 0.80 based foods, and special nutrition industries 0.72 1,600 1,508 1,524 1,447 Strong organic growth and continued shift 1,400 1,325 1,339 towards more value-based solutions 1,258 1,205 0
Slide 8: Chocolate & Confectionery Fats
Chocolate & Confectionery Fats 1,000 2.00 1.77 1.81 1.82 900 1.74 1.74 1.80 Market leader within functional solutions for: 800 747 771 1.60 Chocolate 735 Compounds for coating and molding 700 664 1.40 Speciality fats for confectionery fillings 600 553 1.20 Continued growth, but EBIT/kilo has slowed
Slide 9: Technical Products & Feed
Technical Products & Feed 320 301 0.60 299 274 278 0.51 0.51 Sustainable business using by-products from 280 263 speciality oils manufacturing 240 Refined into value-adding solutions for: 0.36 0.40 200 Technical products such as detergents and candles as 0.33 0.30 155 well as paper production and ti
Slide 10: Highlights 2019
Highlights 2019 AkoPlanetTM COBAOTM Pure Sustainability progress Mergers & Acquisitions MaasRefinery (NL) bd foods (UK) Soya International (UK) The Co-Development Company
Slide 11: Business update summary
Business update summary We are well positioned with our offer of plant-based, healthy, high value-adding oils and fats solutions, using our customer co-development approach. We continue to see favorable underlying trends in our markets and we remain prudently optimistic about the future. The Co-Deve
Slide 12: Strategy update
Strategy update The Co-Development Company
Slide 13: The new strategic direction will preserve our DNA, but sharpen our focus
The new strategic direction will preserve our DNA, but we will sharpen our focus to strengthen our position AAK builds Passion, drive and entrepreneurship on a strong performance with… Strong regional ownership and accountability 35 Co-development and Customer centricity Sustainability and responsib
Slide 14: We have defined the future strategic direction of AAK
We have reviewed our market and capabilities and defined the future strategic direction of AAK to successfully continue our growth journey Where we will play How we will play What will enable us to play Focus on key growth Rethink how we manage Secure key enablers that will opportunities within our
Slide 15: Significant opportunities in our current market for continued profitable growth
Our assessment shows significant opportunities in our current market for continued profitable growth Where we will play Market AAK’s focus market of speciality oils & fats is growth expected to grow faster than commodity oils & fats AAK is well positioned to benefit from the Consumer consumer trends
Slide 16: The O&F market grows at ~3% per year; speciality grows faster
The O&F market grows at ~3% per year but our assessments indicate that the speciality O&F market is growing faster, confirming our focus market Indicative O&F consumption (‘000 MT) 250,000 +3.2% 200,000 +3.4% 150,000 100,000 50,000 0 2012 2014 2016 2018 2020 2022 Source: IHS Global, 2018, Transparen
Slide 17: Consumer trends are setting the direction in the market
Consumer trends are setting the direction in the market The Co-Development Company
Slide 18: AAK is well positioned to benefit from the consumer trends
AAK is well positioned to benefit from the consumer trends Sustainability as a competitive advantage AAK is regarded as a trustworthy partner with focus on traceability and sustainability throughout the value chain Consumers’ increasing demand for higher quality AAK is well positioned in the special
Slide 19: Market dynamics differ across categories; AAK strong in differentiated categories
The market dynamics differ across categories and AAK has a strong position in the more differentiated, high-value and faster-growing categories High growth Low growth rate rate Expected underlying Market market growth rates vary growth Dairy Bakery CCF Infant Personal significantly across segments P
Slide 20: Differentiate our approach to markets with different dynamics
Acknowledging that the different markets are characterized by very different dynamics, it is important to differentiate our approach to them Where we will play How we will play What will enable us to play Focus on key growth Rethink how we manage Secure key enablers that will opportunities within ou
Slide 21: Different portfolio strategies guide how we manage our industries
In light of the diverse market dynamics, we will apply different portfolio strategies, which will guide how we manage our respective industries The Co-Development Company
Slide 22: Strong, broad portfolio of industries with different opportunity profiles
We have a strong, broad portfolio of industries with different opportunity profiles Invest in continued Bet for the future Optimize Maintain current growth performance strategy Chocolate & Health & Nutrition platform Bakery Natural Emulsifiers Confectionery Fats Special Nutrition Plant-based Foods D
Slide 23: We will invest in CCF and Special Nutrition
We will invest in CCF and Special Nutrition to continue our growth journey Chocolate & Confectionery Fats Special Nutrition Strong historical growth enabled by industry-leading Good reputation for high-quality, tailor-made customer application knowledge and ability to offer customers solutions has e
Slide 24: Bets for the future in Health & Nutrition and Plant-based Foods
We will place bets for the future in Health & Nutrition and Plant-based Foods Health & Nutrition platform Plant-based Foods Increasing consumer demand for health and nutritional Fast-growing market where plant-based oils and fats benefits are key ingredients but have seen limited application develop
Slide 25: Focus and optimize Bakery, Dairy and Foodservice
We will focus and optimize our approaches in Bakery, Dairy and Foodservice Bakery and Dairy Foodservice Overall market trends towards commoditization Diverse range of products and applications from frying but specific underexploited, high-value product oils to high-end, tailor-made dressings with si
Slide 26: Maintain current strategies in a range of other industries
We will maintain current, successful strategies in a range of other industries Natural Emulsifiers Personal Care Technical Products & Feed Speciality segment with large Growing business with strong Healthy business functioning as an overlap with AAK product value proposition in the beauty outlet for
Slide 27: Differentiate our approach to markets with different dynamics
Acknowledging that the different markets are characterized by very different dynamics, it is important to differentiate our approach to them Where we will play How we will play What will enable us to play Focus on key growth Rethink how we manage Secure key enablers that will opportunities within ou
Slide 28: Enhance sustainability offerings and Customer Co-Development model
To further differentiate, we want to enhance our sustainability offerings and Customer Co-Development model by strengthening our foundation and backbone Customer Co-Development 2.0 Differentiators Sustainability as a true differentiator Product management Backbone End-to-end supply chain planning an
Slide 29: Continue growth by leveraging global strengths
Our aim is to continue our growth journey by leveraging our global strengths and developing differentiated solutions with clear focus on customer value creation... From strong foundation… …to further leverage and synergies Regional strongholds with an entrepreneurial Global scale effects and synergi
Slide 30: Best in class value propositions in plant-based oils and fats
…and with our in-depth knowledge in plant-based oils and fats continue to develop best in class value propositions fitting the needs of our customers Customer Co-Development 2.0 Stay ahead by offering a customer experience that is second to none Continue to develop unique customer solutions with a c
Slide 31: M&A remains a key enabler of continued growth
M&A remains a key enabler of our continued growth journey Geographic Capacity expansion M&A Technology and Adjacent product capabilities portfolios The Co-Development Company
Slide 32: Portfolio management and offerings key to reach 10% EBIT growth ambition
Strong portfolio management and further strengthened offerings are key to reach our ambition of 10% EBIT growth • Strategic direction supporting AAK’s continued growth • Focus on speciality O&Fs and capture opportunities created by the favorable consumer trends Average 10% • Manage portfolio with in
Slide 33: Thank you!
Thank you! www.aak.com The Co-Development Company