Slide 1: Update Asia with special focus on India and China
Torben Friis Lange Update Asia with special focus on India and China
Slide 2: Agenda
Agenda Update Asia Special focus on: India China 2 The Co-Development Company
Slide 3: AAK expansion in Asia
AAK expansion in Asia September 2014, September 2015, October 2015, China India Japan AAK announces that it will construct AAK acquires 51 percent of the AAK establishes a partnership a speciality and semi-speciality edible shares of Kamani Oil Industries Pvt Ltd., with Japanese company oils factory
Slide 4: Market landscape – Asia
Market landscape – Asia Infant Food- Bakery Dairy Frying CCF Nutrition service CHINA INDIA TURKEY JAPAN MIDDLE EAST OTHER Market potential: High Medium Low/Not significant Focus for AAK: Sources: Euromonitor, AAK analysis 4 The Co-Development Company
Slide 5: Current performance Asia, YTD
Current performance Asia, YTD Volume EBIT improvement growth +111% +109% 5 The Co-Development Company
Slide 6: Update sub-regions – Turkey
Update sub-regions – Turkey Increasing volume year-on-year Market shrinkage due to various turmoil Tourist industry significantly negatively impacted Expanding with new innovative products in bakery segment Exporting to nearby regions Longer term: a potential for further growth 6 The Co-Development
Slide 7: Update sub-regions – Asia Pacific
Update sub-regions – Asia Pacific Southeast Asia, Australia, New Zealand etc. Asian consumer sentiment improving Western aspirations persist Innovation continues – new attractive segments evolving Growth in region – in pockets Progress on approvals with multinational corporations in key segments Inv
Slide 8: Update sub-regions – Middle East
Update sub-regions – Middle East New sales office in Dubai Despite many country-specific issues, good pockets with growth, generally young demographic development Egypt – increasing industrialization Lifted embargos in the region Golf Cooperation Council (GCC) countries – heavy impact from low miner
Slide 9: Update AAK Miyoshi – Japan
Update AAK Miyoshi – Japan Based on global trends in Japan Co-Develop new ranges of products, optimizing Japanese and global experiences and methods Quality production and technical know-how Co-Development day in Tokyo 65 participants – all major chocolate producers and food industry media. Customer
Slide 10: India
Special focus India
Slide 11: Welcome to India
Welcome to India 11 The Co-Development Company
Slide 12: Macroeconomic landscape
Macroeconomic landscape Population: 1.27 billion (2015) 65% below 35 years Literacy rate: 74% GDP: USD 2.18 trillion (2015) Current growth: 7.4% GDP per capita: USD 1,688 (2015) 7th largest world economy, member of G20 30 states and 6 union territories New GST / VAT legislation 29 languages 12 The C
Slide 13: Macroeconomic landscape
Macroeconomic landscape Age profile: young population (average 27 years) Increasing working class / urbanization Increasing education spent Consciousness for health and food safety Globalized taste appreciation Aspiration levels rising 13 The Co-Development Company
Slide 14: Market landscape
Market landscape Product categories growth forecast, next five years Chocolate & Ice cream and Infant & growing-up confectionery Baked goods Dairy frozen dessert nutrition 9.7% 3.2% 6.4% 13.3% 4.8% 13.7% 7.2% 11.3% 16.5% 11.2% Volume growth 2016 CAGR 2016–2021 Source: Euromonitor 14 The Co-Developme
Slide 15: The evolution – AAK Kamani
The evolution – AAK Kamani 1995 1999 2010 September 2015 Current Management, First speciality Manufacturing AAK acquires 51 percent of the as Chawla Brothers, fat produced facility operational shares of Kamani Oil Industries Pvt Ltd., one of takes over defunct 30 for customer in Khopoli the leading
Slide 16: Segments
Segments Infant Nutrition, Pharma and Cosmetics Confectionery Foodservice Bakery Ice cream & Frozen desserts Commodity fats 16 The Co-Development Company
Slide 17: Play to win
Play to win Understanding of India – a must Strong innovation capability Co-Development Deep and intimate customer relationships Superior service and quality Speciality Oils & Fats focus Strong people and team 17 17 The Co-Development Company
Slide 18: Premium positioning
Premium positioning 18 The Co-Development Company
Slide 19: Customer Co-Development
Customer Co-Development 19 The Co-Development Company
Slide 20: Customer Co-Development
Customer Co-Development Distributor incentive trip Customer Co-Development AAK Kamani Bakery challenge 20 The Co-Development Company
Slide 21: The Co-Development Company
The Co-Development Company Customer Innovation centre equipped with sophisticated instruments and pilot plants Approved by DSIR, Govt. of India Dedicated team to meet customer service satisfaction/expectations Food Innovation lab and AAK Kamani Academy – customer support and business development Cus
Slide 22: China
Special focus China
Slide 23: China economy - slow down of GDP growth but with stronger domestic consumption
China economy - slow down of GDP growth but with stronger domestic consumption Rise of Middle Class in China Post 80’s and Post 90’s generations become the main force of consumption Go on-line Billion RMB 20 000 18 000 60% 18 000 44,8% 16 000 40,1% 39,8% 13 370 45% 14 000 34,6% 33,8% 33,2% 12 000 10
Slide 24: Speciality and semi-speciality oils and fats market is projected to grow at 8% p.a.
Speciality and semi-speciality oils and fats market is projected to grow at 8% p.a. in the next five years China speciality and semi-speciality oils & fats market 1,310,000 MT 5% 2% 2% 6% 2% A 8% Food Services B 8% 39% 12% Industrial Bakery 48% C 16% Artisanal Bakery 12% D CCF E 24% 16% Dairy F G In
Slide 25: Market landscape
Market landscape Product categories growth forecast, next five years Chocolate & Baked goods Dairy confectionery 5.2% 1.2% -3.0% 7.1% 7.5% 5.1% Ice cream and Infant & growing-up frozen dessert nutrition -0.1% 4.8% 4.9% 9.3% Volume growth 2016 CAGR 2016–2021 Source: Euromonitor 25 The Co-Development
Slide 26: Play to win
Play to win Focus on global and national/segment leaders Innovation with speed based on AAK’s brand and reputation on quality… Key customer priority Delivering value-adding solutions Strong concepts Focus on specialities Production in Zhangjiagang Flexible supply chain Strong technical capabilities
Slide 27: Intensified activities through Co-Development
Intensified activities through Co-Development Trade shows AAK Academy Innovation day at key customers Senior Leader visits 27 The Co-Development Company
Slide 28: Building a strong team
Building a strong team 28 The Co-Development Company
Slide 29: Plant in Zhangjiagang will accelerate our growth in China significantly
Plant in Zhangjiagang will accelerate our growth in China significantly Groundbreaking Refinery commissioning • Sep / 2014 • Nov / 2016 Civil construction Plant ready • Aug / 2016 • Dec / 2016 29 The Co-Development Company
Slide 30: Thank you
Thank you