Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2017)
31 slides from Aak Ab's investor day presentation, Nov 28, 2017
Slide 1: Capital Market Day November 28, 2017
Capital Market Day November 28, 2017 The Co-Development Company
Slide 2: CEO update
Fredrik Nilsson Chief Financial Officer and acting Chief Executive Officer CEO update The Co-Development Company
Slide 3: 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 4: Agenda
Agenda 1 Acting CEO update 2 CFO update 3 South Latin America update with focus on Brazil 4 Asia update with focus on China 5 Sustainability update 6 Special Nutrition update 4 The Co-Development Company
Slide 5: AAK speakers
AAK speakers Fredrik Nilsson Gerardo Garza López de Hereida Torben Friis Lange Chief Financial Officer and President South Latin America President Asia and Chairman acting Chief Executive Officer Global Sourcing and Trading Born: 1977 Born: 1961 Born: 1963 Employed: 2007 Employed: 2014 Employed: 201
Slide 6: AAK speakers
AAK speakers Anne Mette Olesen Karel Stoschek Chief Marketing Officer President Special Nutrition including CSR Born: 1964 Born: 1970 Employed: 2010 Employed: 2012 Nationality: Danish Nationality: Finnish 6 The Co-Development Company
Slide 7: Johan Westman appointed new President and CEO for AAK
Johan Westman appointed new President and CEO for AAK Currently Senior VP Europe and Managing Director of the BlankLight division at Shiloh Industries Close to 20 years of experience in management consulting and from the automotive supplier industry President and CEO of FinnvedenBulten AB (publ.) 20
Slide 8: Global footprint and leading positions
The Co-Development Company Talented More than 3,400 Employees Production and 20 Customization plants 25 Sales offices Sales in 100 countries Global footprint Leading positions 8 The Co-Development Company
Slide 9: Review of business – 2017 YTD
Review of business – 2017 YTD HIGHLIGHTS GROWTH & RETURNS 27th consecutive quarter of record-high 2017 operating profit Very strong double-digit profit development in Food Ingredients Q2 Volume 1,579,000 MT (up 10% y/y, Operating profit* SEK 1,315 million (up 11% y/y, up 12% y/y**) and Q3 organicall
Slide 10: FI January to September
FI January to September Volume (‘000 MT) Operating profit (SEK million) Operating profit per kilo (SEK) 10 The Co-Development Company
Slide 11: FI volume – January to September
FI volume – January to September 11 The Co-Development Company
Slide 12: FI – organic growth January to September
FI – organic growth January to September 12 The Co-Development Company
Slide 13: FI EBIT – January to September
FI EBIT – January to September 13 The Co-Development Company
Slide 14: FI January to September – share of operating profit by segment
FI January to September – share of operating profit by segment 55% 52% 45% 44% 45% 38% 39% 36% 36% 35% 33% 33% 30% 25% 25% 25% 21% 20% 20% 19% 18% 17% 17% 17% 17% 16% 16% 16% 15% 13% 12% 12% 12% 12% 11% 10% 10% 9% 7% 7% 6% 6% 5% 5% 5% 4% 3% 2% 2% 2% 1% 0% -5% 2010 2011 2012 2013 2014 2015 2016 2017
Slide 15: FI EBIT/kilo – January to September
FI EBIT/kilo – January to September 15 The Co-Development Company
Slide 16: CCF – organic growth January to September
CCF – organic growth January to September Volume (‘000 MT) Operating profit (SEK million) Operating profit per kilo (SEK) 16 The Co-Development Company
Slide 17: Cocoa butter price
Cocoa butter price 10 000 9 000 8 000 7 000 “Still good” 6 000 “Sweet spot” 5 000 “Still good” 4 000 3 000 2 000 1 000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 17 The Co-Development Company
Slide 18: Since last Capital Market Day
Since last Capital Market Day 18 The Co-Development Company
Slide 19: Key program achievements 2017
Key program achievements 2017 Go to Market Operational Excellence Special Focus Areas Strengthened global and local go-to- Progressing with Multi-oil Senior Nutrition brand Akovita® market approach sustainability launched and first volumes delivered Strengthened regional account Global coordination
Slide 20: TROPICAO: A tropical revolution in chocolate production
TROPICAO™ A tropical revolution in chocolate production 20 The Co-Development Company
Slide 21: The AAK Way – Akovita
The AAK Way – Akovita® A leading provider of value-adding essential lipids Heart health Brain health Digestion 21 The Co-Development Company
Slide 22: Brazil
Brazil 22 The Co-Development Company
Slide 23: China
China 23 The Co-Development Company
Slide 24: Richmond, USA
Richmond, USA 24 The Co-Development Company
Slide 25: Trends
Trends Indulgence We focus on the global key Personalization drivers that affect the behavior of end consumers. Trust Health Convenience 25 The Co-Development Company
Slide 26: Strong business drivers
Strong business drivers World population is increasing 7.6 billion in 2017 8.6 billion in 2030 13% By 2030, 5 billion will be living in urban areas – up from 3.5 billion 43% 44% of all population growth is in Asia Global middle class population will grow by 150% Source: UN projections; Euromonitor I
Slide 27: Market growth
Market growth +0 - 3.9% +0 - 1.1% +3.9 - 9.3% +3.9 - 9.3% +1.3 - 2.2% +1.3 - 3.9% CAGR: 2017-2022 Source: Packaged Food, Euromonitor International, 2017 27 The Co-Development Company
Slide 28: Management ambition for the coming years
Management ambition for the coming years Innovation Organic & Mix growth Average 10% year-over-year EBIT improvement* & Supporting a good and consistent Selective Efficiency EPS improvement acquisitions * Excluding acquisitions and at fixed FX 28 The Co-Development Company
Slide 29: Concluding remarks
Concluding remarks We continue to remain prudently optimistic about the future. 29 The Co-Development Company
Slide 30: Thank you!
Thank you! www.aak.com The Co-Development Company
Slide 31: Thank you! Q&A
Thank you! Q&A The Co-Development Company