Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (October 2006)
13 slides from Aak Ab's investor day presentation, Oct 3, 2006
Slide 1: Business Area Food Ingredients Continental Europe
Business Area Food Ingredients Continental Europe Håkan Christensson, President
Slide 2: Food Ingredients Continental Europe: Market position
Food Ingredients Continental Europe • Market position - Market leader in the Nordic area - Well established in Central & Eastern Europe - Strong speciality market player in mainland Europe - Driving player in niche segments • A very R&D-driven business area • Production platforms - Karlshamn, Sweden
Slide 3: Market and competitors
Food Ingredients Continental Europe • Market - Vegetable oil market for food in Europe 15 million tonnes - 1-2% growth in the region - Some geographical regions and product segments are growing faster • Competitors - ADM and Cargill for bulk oils - Loders Croklaan and Fuji Oil for speciality and nic
Slide 4: Regions and customers
Food Ingredients Continental Europe • Regions UK - Total FI sales: 6bn. SEK - 60% in UK/Nafta and 40% Europe Americas - 55% of our European sales are to the Nordic area Europe - The rest is to mainland Europe • Customers - Dairy industry - Bakery industry - Nutrition industry, e.g. baby foods - Marg
Slide 5: Industry driving forces
Food Ingredients Continental Europe • Industry driving forces - Strong cost focus - Substitution of expensive solutions (e.g. milk fat) - Health - Low margins and high transporta- tion costs make Food ingredients to local/regional business - Speciality products have a broader geographic scope. - Bul
Slide 6: Product portfolio
Food Ingredients Continental Europe Product portfolio Bulk • Standard oils like cooking oils, i.e. standard products with a large number of competitors. Value-Added • Customised fat solutions for more advanced and demanding applications to fulfil customers’ needs on - Functionality - Health aspects
Slide 7: Products range and applications
Food Ingredients Continental Europe • Products range; - Wide range of everything from standard oils to advanced products with tailored properties. • Products and applications - Dairy-fat alternatives (DFA) ØSolutions for butter blends, cream, ice cream ØCheese - Bakery fats ØFull range of fats and m
Slide 8: Unit margin
Food Ingredients Continental Europe Unit margin* 1.7 Nutri- Ready- SEK/kg Dairy- tional meals fat alter- Lipids Conve- Food- Bakery na- nience FI service tives food avg. (DFA) Marga- Bulk rine oils Bulk oils Speciality * Unit margin = Gross contribution / volume. Source: Annual report 2005. 8 Capita
Slide 9: Strategy: Driving product-mix towards value-added
Strategy: Driving product-mix towards value-added Profit Bulk oils Value-added solutions Dairy-fat alternatives Bakery fats Convenience acquisition Bakery Foodservice acquisition Convenience food Nutritional lipids 2000 2006 9 Capital Market Day, October 3, 2006
Slide 10: Dairy Fat Alternative
Food Ingredients Continental Europe Dairy Fat Alternative: Cost • Milk fat quantities in Europe 4 million Milk fat MT (veg oil 15 m MT) • Replace milk fat in dairy application Akochurn Standard oils - Cost DFA Akocheese - Health Quality - Functionality • Conservatism slow down the transition speed.
Slide 11: Success factors
Food Ingredients Continental Europe Success factors • Market presence • Customised • Extensive know-how about application and fat functionality • Product development skills • Productivity 11 Capital Market Day, October 3, 2006
Slide 12: New products launched
Food Ingredients Continental Europe New products launched; • Akocrisp. -A pumpable fat for the bakery segment. -Total lower cost and healthier solutions • Akochurn. -Replace milk fat with a vegetable fat alternative. Low-fat solution. -Total lower cost and healthier solutions 12 Capital Market Day,
Slide 13: The future
The future - Strong R&D portfolio -Healthier fats -Non-trans solutions -Pumpable solutions - Commercialisation of innovations - Geographical expansion -Central&Eastern Europe Supported by the AAK merger 13 Capital Market Day, October 3, 2006