Slide 1: Special Nutrition update
Karel Stoschek President Special Nutrition Special Nutrition update The Co-Development Company
Slide 2: A growth story
A growth story 1 Business update 2 Senior Nutrition 3 Medical 3 Nutrition 4 Infant Nutrition 5 Key takeaways 2 The Co-Development Company
Slide 3: A growth story
A growth story 1 Business update 2 Senior Nutrition 3 Medical 3 Nutrition 4 Infant Nutrition 5 Key takeaways 3 The Co-Development Company
Slide 4: Business overview, YTD September
Business overview, YTD September Global effect on China regulatory change – increased demand on specialities EFSA regulation for infant and toddler nutrition High demand on speciality product – organic, allergic, premium Global market growth continuing in all three sub-segments Market Deliveries fro
Slide 5: We have created significant value
We have created significant value Volume (‘000 MT) Operating profit (SEK million) Operating profit per kilo (SEK) 5 The Co-Development Company
Slide 6: AAK Special Nutrition at a glance
AAK Special Nutrition at a glance Serving customers from 13 plants Global organization around the world Sales Marketing AAK Sweden R&D Product management Customer innovation AAK UK AAK US AAK AAK Turkey Netherlands AAK China AAK Mexico AAK Belgium AAK Kamani AAK Brazil AAK Uruguay AAK Asia-Pacific 6
Slide 7: A growth story
A growth story 1 Business update 2 Senior Nutrition 3 Medical Nutrition 4 Infant4Nutrition 5 Key takeaways 5 7 The Co-Development Company
Slide 8: Nutrition to increase senior vitality
Nutrition to increase senior vitality End products Liquids & By 2040 senior Powder population to double and reach 1.5bn Active lifestyle supports healthy aging. Emerging market segment Focus on right nutrition is essential Health claims are key market drivers Sources: Euromonitor International 8 The
Slide 9: Market development
Market development Population aged 65+ in China and rest of the world Population million people Health and wellness market size Retail value sales (US$ billion) Sources: Euromonitor International, September 2017 and AAK 9 The Co-Development Company
Slide 10: Senior Nutrition – trends driving the growth
Senior Nutrition – trends driving the growth Increase in Aging spending population power Senior Nutrition Healthy Stay living healthy lifestyle longer Sources: Euromonitor International, US Consensus bureau and AAK 10 The Co-Development Company
Slide 11: The AAK Way – Akovita®
The AAK Way – Akovita® A leading provider of value-adding essential lipids Tailor-made solutions: Extensive portfolio of essential fats Optimized lipid nutrition for specific areas Bio-active ingredients Global partner with proven track record with results Solutions supported by approved claims Hear
Slide 12: A growth story
A growth story 1 Business update 2 Senior Nutrition 3 Medical Nutrition 4 Infant4Nutrition 5 Key takeaways 5 12 The Co-Development Company
Slide 13: Unlocking the potential of medical nutrition
Unlocking the potential of medical nutrition End products Liquids & Aging population Powder Increase in chronic and lifestyle-related diseases Help patients stay Specifications at home, reduce length of stay in and hospital certifications Sources: Euromonitor International 13 The Co-Development Comp
Slide 14: Market development
Market development 49,4 B$ CAGR 5% 28,9 B$ Value (US$ billion) Medical Nutrition value US$ B Sources: Kalorama and AAK 14 The Co-Development Company
Slide 15: Medical Nutrition category trends
Medical Nutrition category trends Chronic Aging lifestyle population diseases Medical Nutrition Patients Investments want to for health stay home care Health care budgets Sources: Euromonitor International, US Consensus bureau and AAK 15 The Co-Development Company
Slide 16: The AAK Way – Akomed®
The AAK Way – Akomed® Unlocking the potential of medical nutrition Tailor-made solutions: GMP, API, FDA – certification done (Karlshamn) Speciality portfolio of bio-active ingredients Unique STG (Structured TriGlycerides) and MCT oils Egg phospholipids Olive oil Oral Nutritional Enteral nutrition Pa
Slide 17: A growth story
A growth story 1 Business update 2 Senior Nutrition 3 Medical 3 Nutrition 4 Infant Nutrition 5 Key takeaways 5 17 The Co-Development Company
Slide 18: The world's fastest-growing consumers
The world’s fastest-growing consumers Mother’s milk is always the first choice and the aim with infant nutrition is to resemble breast milk as closely as possible. Continuing market growth Increasing special diet needs Increasing number of women in the workforce Market Growing middle consolidation c
Slide 19: Market development
Market development CAGR 8,9% 68,3 B$ CAGR 6,5% 24,8 B$ Milk formula global retail value US$ B Sources: Euromonitor International and AAK 19 The Co-Development Company The Co-Development Company
Slide 20: Infant Nutrition category trends
Infant Nutrition category trends Dual Economic income growth and families job emerge creation Infant Nutrition Increasing Increasing spend on number of premium women in nutrition workforce Sources: Euromonitor International and AAK 20 The Co-Development Company
Slide 21: The AAK Way – Akonino®
The AAK Way – Akonino® In every step of a child’s development Akonino® is our foundation Akonino® tailored solution sourced from natural oils Akonino® Food Safety standard for secured quality The Akonino® COFCC approved organic line, Akonino® – a unique natural solution, which allows the same lipid
Slide 22: INFAT® continuing the global growth
INFAT® continuing the global growth marketed by Advanced Lipids (JV with Enzymotec) • Continuing the global growth • China the most important end market • Strong marketing platform to support customers • Opening new markets in Asia and Latin America • Strong innovation pipeline for future growth • C
Slide 23: A growth story
A growth story 1 Business update 2 Senior Nutrition 3 Medical 3 Nutrition 4 Infant Nutrition 5 Key takeaways 23 The Co-Development Company
Slide 24: Creating long-term value
Creating long-term value All focus categories are in the future growth markets Broad and balanced portfolio for nutrition applications Global presence and scale-up in all Special Nutrition categories Solid pipeline of customer co-developed projects Global leader in controlling contaminants Operating
Slide 25: We serve Special Nutrition
We serve Special Nutrition INFANT MEDICAL SENIOR NUTRITION NUTRITION NUTRITION Akonino® Akomed® Akovita® Tailor-made solutions Pioneering medical nutrition Lipids for life 25 The Co-Development Company
Slide 26: Thank you!
Thank you! www.aak.com The Co-Development Company