Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2015)
18 slides from Aak Ab's investor day presentation, November 2015
Slide 1: China update
Torben Friis Lange President Asia China update
Slide 2: Agenda
Agenda Macroeconomic Landscape Market Landscape – Product Categories AAK China – the Way Forward Play to Win AAK China Capabilities AAK Brand promise and the Chinese market Adapt to local taste and culture Production plant status 2016 2 The Co-Development Company
Slide 3: Macroeconomic Landscape
Macroeconomic Landscape This is not indented as a macroeconomic presentation, but… China, with a population of 1.3 billion and being the second largest economy, is increasingly playing an important and influential role in the global economy The Chinese economy has faced some downward pressure but al
Slide 4: Macroeconomic Landscape
Macroeconomic Landscape Labor market conditions remained healthy with 8.41 million new jobs created in China’s urban areas between January and July 2015, which was 84.1 percent of the annual target Consumption continued to grow steadily. Retail sales grew by a year-on-year rate of 10.8 percent in Au
Slide 5: Macroeconomic Landscape
Macroeconomic Landscape China GDP growth (%) Real GDP growth (%) World China Source: World Bank October 2015 5 The Co-Development Company
Slide 6: Market Landscape
Market Landscape Product Categories Growth Forecast, next five years Chocolate Baked Goods Dairy confectionery 7.0% 9.4% 4.9% 7.7% 9.8% 8.0% Ice cream and Infant Nutrition frozen dessert 13.2% 3% 14.9% 5% Volume growth 2015 CAGR 2015-2020 Source: Euromonitor 6 The Co-Development Company
Slide 7: 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: Source: Euromonitor, AAK analysis 7 The Co-Development Company
Slide 8: Market Landscape – Asia
Market Landscape – Asia Customers Global Regional Local CHINA INDIA TURKEY JAPAN MIDDLE EAST OTHER AAK CAGR 2013 – 15: 20% 2% 8% Strong Position Medium Position Low Position/Not Significant Source: AAK analysis, Industry insights 8 The Co-Development Company
Slide 9: 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 With a focus on Specialities as the market expands for higher quality products With a Chinese product
Slide 10: Performance Asia YTD
Performance Asia YTD Organic volume EBIT growth Improvement Underlying strong improvement + 6% offset by expansion in China 10 The Co-Development Company
Slide 11: AAK China – the Way Forward
AAK China – the Way Forward + 30 employees in Shanghai New General Manager Mr. Weiyu Fan August 2015 Started with one man 2011 2014 2015 2016 AAK Innovation Center Shanghai Production Plant opened in Zhangjiagang 11 The Co-Development Company
Slide 12: AAK China Capabilities
AAK China Capabilities Manufacturing Site (2016) Supply Chain Sales & Customer Innovation Teams AAK Academy Agents & Distributors network Go to Market Operations Innovation Center Dairy Bakery Co-Development CCF Customer Co-Development Local product development 12 The Co-Development Company
Slide 13: AAK Brand promise and the Chinese market
AAK Brand promise and the Chinese market With our Innovation center in Shanghai we have demonstrated a strong focus on innovation and adaptation of technology and know-how to integrate with customers in China 13 The Co-Development Company
Slide 14: AAK Brand promise and the Chinese market
AAK Brand promise and the Chinese market 14 The Co-Development Company
Slide 15: AAK in China – adapt to local taste and culture
AAK in China – adapt to local taste and culture Assumption – Western products are more trendy, of better quality and more safe to eat Shift – international producers adapt to Chinese taste and culture Top five players in chocolate confectionery in China all remain international companies Market prom
Slide 16: Lead generation through Co-Development
Lead generation through Co-Development Customer Innovation days AAK Academy™ Generic Segment / Application focus Customer Technical seminars / meetings / publications Food trade Expos and industry events Actively involved in Industry associations (Segment specific) Local initiatives to support globa
Slide 17: China Capabilitites – Location Zhangjiagang, Jiangsu Province
China Capabilitites – Location Zhangjiagang, Jiangsu Province Zhangjiagang City part of Jiangsu Province Total population is 1,3 million Located 150 km northwest of Shanghai No 1 import hub for vegetable oils in China Largest oils and grains trading and logistic center in eastern China 17 The Co-Dev
Slide 18: www.aak.com
www.aak.com