Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2022)
28 slides from Aak Ab's investor day presentation, Nov 29, 2022
Slide 1: Strategy update
Strategy update Johan Westman President and CEO Capital Market Day Stockholm, Sweden, November 29, 2022 The Co-Development Company Capital Market Day 2022
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements i
Slide 3: Continuous development of our strategy
Continuous development of our strategy We have reviewed our strategy as part of our continuous strategy process and yearly evaluation The updates in this year’s strategy review include: • New Strategic Aspiration • Updated Portfolio Strategy The Co-Development Company Capital Market Day 2022
Slide 4: AAK is a multi-oil ingredients house on a strategic journey towards higher value and impact
AAK is a multi-oil ingredients house on a strategic journey towards higher value and impact Trends and market outlook AAK strengths Updated strategy Well positioned for the Strong performance despite We see strong growth underlying trends in our market extreme uncertainty and opportunities ahead and
Slide 5: Trends and market outlook
Trends and market outlook The Co-Development Company Capital Market Day 2022
Slide 6: Consumer trends set the market direction
Consumer trends set the market direction Trace- Better- ability for-you Social Natural/ media organic Health and Transparency well-being Just-for- Ethical me living Customi- Sustainable Consumer zation & Eco Self- Plant- branding based Premiumi- Convenience zation On-the- go Indul- gence e-com Food-
Slide 7: The total oils and fats market volume is expected to continue grow at ~3 percent
The total oils and fats market volume is expected to continue grow at ~3 percent, with slightly higher growth in speciality markets Indicative oils and fats market consumption (‘000 MT) Total market, oils and fats Expected to continue growing, driven by 250 000 GDP per capita and population growth ~
Slide 8: Consumer trends drive change in our customer industries where sustainability and health are important
Consumer trends drive change in our customer industries where sustainability and health are important drivers across industries AAK industry relevance (selected industries, non-exhaustive) Special Plant-based Key trends and CCF Nutrition Bakery Dairy Foodservice Personal Care Candles growth drivers
Slide 9: AAK strengths
AAK strengths The Co-Development Company Capital Market Day 2022
Slide 10: Strong performance and solid profit growth driven by operating profit per kilo and volume
Strong performance and solid profit growth is driven by growth in both operating profit per kilo and volume Volume Operating profit* Operating profit/kilo* Absolute values +4% 2 290 2 195 2 312 2 298 +11% 2 769 +6% 1,20 2 129 2 239 2 393 1,04 1 833 1 966 2 157 2 165 0,94 0,99 1 620 1 703 1 956 0,82
Slide 11: Our close to customer business model delivers value
Our close to customer business model, with our market-leading speciality position and 150+ years of experience, delivers value Serving higher value segments with our flexible and close to customer speciality approach Raw materials from Mills, crushers* Producers and Retail and farmers/plantations an
Slide 12: With our multi-oil ingredients approach and oils and fats expertise we are well positioned
With our multi-oil ingredients approach and oils and fats expertise we are well positioned to benefit from consumer trends Oils & fats are made up of a range of fatty acids with …that we tailor to our customers needs to help different characteristics… them innovate and win in their markets Oil chemi
Slide 13: Large and diversified customer base creates stability over time in revenue growth
Large and diversified customer base creates stability over time in revenue growth Customers share of revenue – YTD 2022 #1 5% # 2-10 17% 10% # 11-25 58% # 50- 10% # 26-50 The Co-Development Company Capital Market Day 2022
Slide 14: The broad range of customer segments and needs we serve within our business areas
The broad range of customer segments and needs we serve within our business areas reduces risk and makes our business less cyclical Volumes – January to September 2022 MT (‘000) 387 400 (23%) Food Ingredients 326 Chocolate & Confectionery Fats 350 (19%) Technical Products & Feed 300 250 209 207 (12%
Slide 15: Volume growth in CCF and bounce back in Foodservice offset by optimization in Bakery, TPF and Candles
Volume growth in CCF and bounce back in Foodservice offset by optimization in Bakery, TPF and post pandemic decline in Candles Development – January to September 2022 vs. January to September 2021 MT (’000) 39* Food Ingredients 40 (12%) Chocolate & Confectionery Fats 30 Technical Products & Feed 16
Slide 16: Positive operating profit growth in all four quadrants of our portfolio since 2019
Positive operating profit growth in all four quadrants of our portfolio since the launch of the strategy in 2019 Operating profit growth since launch of strategy in 2019 • Strong EBIT growth in CCF, Bakery, Dairy, TPF and Invest in continued growth Optimize performance Personal care • Plant-based Fo
Slide 17: Updated strategy
Updated strategy The Co-Development Company Capital Market Day 2022
Slide 18: We have set an ambitious 2030 aspiration to double our value creation per kilo
We have set an ambitious 2030 aspiration to double our value creation per kilo and continue our speciality journey AAK 2030 aspiration Purpose Making Better Double our value creation per kilo HappenTM Vision The first choice Double EBIT per kilo, by investing in our Aspiration for plant-based oil so
Slide 19: Achieving our aspiration will be recognized among our key stakeholders
Achieving our aspiration will be recognized among our key stakeholders • Our Shareholders • Our Customers • Planet and Society • Our People The Co-Development Company Capital Market Day 2022
Slide 20: Our updated portfolio strategy reflects our updated view of how to invest
Our updated portfolio strategy reflects our updated view of how to invest to reach our aspiration Health and Nutrition platform Invest in continued growth Optimize for value creation Moved from “Bet for the future” and added to Special Nutrition to drive accelerated focus on targeted Health and Choc
Slide 21: Our aim is to capture the business opportunities driven by the shift away from fossil-based ingredients
Our aim is to capture the business opportunities driven by the shift away from fossil-based ingredients to more sustainable alternatives Drivers Personal Care Candles Other applications Environment • Climate change • Air and water pollution problems Consumer pressure • Increased awareness and transp
Slide 22: AAK closely monitors and selectively invests in emerging oils and fats technologies
AAK closely monitors and selectively invests in emerging oils and fats technologies with the potential to drive large impact Plant-based oils Fermented microbial oils Cultivated cellular oils Power-to-X • Extracting edible oils from • Microalgae, yeast- and • Lab grown animal cell and • Using carbon
Slide 23: AAK's strategic positioning related to new food solutions depends on how new technologies scale
AAK’s strategic positioning related to new food solutions depends on how these new technologies commercialize and scale Strategic position Innovation partnerships Selected in-house capabilities Source from large scale producers Stay close to technology, partner up Invest in selected in-house Buy oil
Slide 24: Our overall strategic actions are important levers across all industries
Our overall strategic actions to invest in higher-value, differentiate, optimize and drive impact are important levers across all industries Strategic actions… …are important across our entire portfolio Invest in continued growth Optimize for value creation Invest in higher value opportunities Truly
Slide 25: M&A is a tool to execute our portfolio strategy
M&A is a tool to execute our portfolio strategy and will continue to be an enabler for AAK’s EBIT growth Our portfolio strategy defines strategic focus, … M&A is a tool to execute our updated portfolio prioritization of capital allocation and M&A rationales… strategy and accelerate the portfolio tra
Slide 26: AAK – continued focus and strong delivery
AAK – continued focus and strong delivery Strong Targeting underlying above GROWTH MARKET DRIVERS growth Average Strong BALANCE 10% year-over-year SHEET supporting EBIT further growth improvement The Co-Development Company Capital Market Day 2022
Slide 27: Making Better Happen™
Our purpose Making Better Happen™ We believe that BETTER has the potential to be more ambitious than best Better is a journey of continuous improvement The Co-Development Company Capital Market Day 2022
Slide 28: Thank you
Thank you The Co-Development Company Capital Market Day 2022