Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2010)
64 slides from Aak Ab's investor day presentation, Nov 10, 2010
Slide 1: Capital Market Day – Chocolate & Confectionery Fats
Torben Friis Lange & Karsten Nielsen Capital Market Day – 10 November 2010 Chocolate & Confectionery Fats
Slide 2: Agenda
Agenda Chocolate & Confectionery products Macro data CBE - Illexao campaign CBE distribution centers AAK Capital Market Day - 10 November 2010
Slide 3: Torben Friis Lange, New Business Area Manager
Torben Friis Lange New Business Area Manager Former Managing Director for Pfizer (Wyeth) Nutrition Asia Pacific. Worked in Arla Foods for 17 years in different leading international managerial positions in Denmark, the US and China. Holds a degree in dairy technology and in business administration.
Slide 4: Chocolate & Confectionery Fats Products
Chocolate & Confectionery Fats Products CBE and CBI– Cocoa Butter Equivalents Cocoa Butter Alternatives CBR – Cocoa Butter Replacer CBS – Cocoa Butter Substitute Filling Fats Confectionery Fillings AAK Capital Market Day - 10 November 2010
Slide 5: Chocolate & Confectionery Fats Products
Chocolate & Confectionery Fats Products Chocolate CBE is equivalent to cocoa (CBE) butter. Cocoa Butter CBE is used for cost Alternatives reduction. Compound Legal limitations and (CBR / CBS) product standards related to chocolate CCF 5-7% addition is a widely Fillings used standard, but it
Slide 6: Chocolate & Confectionery Fats Products
Chocolate & Confectionery Fats Products Chocolate (CBE) Cocoa Butter Alternatives Compound CBR & CBS substitutes / (CBR / CBS) replaces cocoa butter CBR and CBS is used for CCF Fillings lower cost chocolate-like Concept 1 products Main parameters are cost vs. chocolate-like behaviour Filling F
Slide 7: Chocolate & Confectionery Fats Products
Chocolate & Confectionery Fats Products Chocolate (CBE) Cocoa Butter Alternatives Compound (CBR / CBS) CCF Fillings Concept 1 There is no reference or standard for Filling fats Filling fats are used to Filling Fillings create nice, smooth centres fats Concept 2 that can release flavours in confe
Slide 8: Confectionery Filling Fats
Confectionery Filling Fats Take the guilt out of Chocolate Chocofill LS – low saturated Chocofill NH – non-hydrogenated Chocofill NT – no trans fatty acids Improved functionality DeliAir – aerated products Chocofill TC – cool melting Chocofill BR – improved shelf life AAK Capital Market Day - 10 Nov
Slide 9: Customising
Customising All AAK products are customised to the specific application • Shelf life • Flavour release • Nutritional profile • Processing AAK Capital Market Day - 10 November 2010
Slide 10: Macro data
Macro data 10
Slide 11: Chocolate & Confectionery Market growth
Chocolate & Confectionery Market growth +5,0% +4,0% +3,0% +2,0% +1,0% +0,0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -1% -2% Source: Euromonitor AAK Capital Market Day - 10 November 2010
Slide 12: Chocolate confectionery consumption
Chocolate confectionery consumption Confectionery consumption growth 2009-2014 per region (1000 mt.) & CAGR Western USA Europe Russia 0,2 % 0,4 % Eastern CIS Europe 2,0 % 2,5 % M.E Asia South Africa Pasific America 3,6 % 3,5 % 3,3 % Source: Euromonitor AAK Capital Market Day - 10 November 2010
Slide 13: CBE – Illexao Campaign
CBE – IllexaoTM Campaign
Slide 14: www.illexao.com
www.illexao.com AAK Capital Market Day - 10 November 2010
Slide 15: CBE – Distribution centers
CBE – Distribution centers 15
Slide 16: AAK CBE distribution centers: World wide logistics
AAK CBE distribution centers World wide logistics Short lead times – AAK is the local supplier globally Bulk delivery - minimise customers costs for warehousing and handling. Flexible customising of finished products Value added processing at destination AAK Capital Market Day - 10 November 2010
Slide 17: AAK CBE distribution centers: World wide logistics
AAK CBE distribution centers World wide logistics Industry standard logistic service = flow of packed products AAK Capital Market Day - 10 November 2010
Slide 18: AAK CBE distribution centers: World wide logistics
AAK CBE distribution centers World wide logistics AAK CBE distribution centers Global coverage – Local presence = flow of packed products AAK Capital Market Day - 10 November 2010
Slide 19: Our Challenge to you….
Our Challenge to you…. AAK Capital Market Day - 10 November 2010
Slide 20: Break
Break
Slide 21: Corporate Social Responsibility (CSR)
Jan-Olof Lidefelt Corporate Social Responsibility (CSR) Capital Market Day – November 10, 2010
Slide 22: Sustainability Report 2009
Sustainability Report 2009 AAK CSR policy supports the principles of the United Nations Global Compact AAK has decided to adopt the GRI, Global Reporting Initiative, framework with focus on the core indicators. Sustainability Report 2009 released mid September. AAK Capital Market Day - 10 November 2
Slide 23: AAK builds its business on value added products from vegetable raw materials
AAK builds its business on producing value added products from vegetable raw materials Rapeseed Sunflower oil Soybean oil Shea oil Palm oil Coconut oil Olive oil AAK Capital Market Day - 10 November 2010
Slide 24: CSR - key issues for AAK
CSR- key issues for AAK Sustainability Report Organic Rapeseed Oil Palm oil Sustainability • Roundtable for Sustainable Palm Oil (RSPO) • GreenPalm certificates Shea • Continue work to develop living conditions in shea collecting villages. AAK Capital Market Day - 10 November 2010
Slide 25: Organic Rapeseed Oil
Organic Rapeseed Oil
Slide 26: Organic Rapeseed Oil
Organic Rapeseed Oil The main part of AAK’s rapeseed is grown in Sweden but imported seed is also used. The trend in the food market in Europe is toward organic-products. AAK’s Akogreen R organic rapeseed oil is obtained from European seeds. It is a recognized organic oil with both KRAV and SKAL cer
Slide 27: Palm oil Sustainability
Palm oil Sustainability
Slide 28: Global increase in demand for palm oil
Global increase in demand for palm oil Palm oil is increasingly attractive as an ingredient in food, confectionery and personal care products - Availability - Functionality - Non trans fats In addition we see growing volumes to bio fuel. High yields per hectare makes it an attractive crop for gr
Slide 29: Round Table for Sustainable Palm Oil
Round Table for Sustainable Palm Oil RSPO- the Round Table for Sustainable Palm Oil was established on WWF initiative to address environmental concerns in palm oil production. AAK is a founding member of the RSPO and holds a seat on the board. More than 400 oil processors, food manufacturers, retail
Slide 30: Traceability in palm oil supply chain is a challenge
Traceability in palm oil supply chain is a challenge Smallholders Mill Plantations Product Manufacturers Retailers Refiners AAK Capital Market Day - 10 November 2010
Slide 31: Segregated supply chain
Segregated supply chain Plantation Mill Refinery Product manufacturer RSPO certified 100 ton 200 200 ton ton RSPO certified 100 ton Conventional CSPO (RSPO certified) fully segregated and traceable from certified producers to an end product manufacturer All links in supply chain are certified
Slide 32: GreenPalm Certificates
GreenPalm Certificates Plantation Mill Refinery Product manufacturer RSPO certified GreenPalm $$ Conventional 100 ton GreenPalm brokers deal between end user and certified plantation No segregation of oil -no extra cost for handling Claim – “supports the production of sustainable palm oil” AAK Capit
Slide 33: AAK driving the Sustainable Palm Oil challenge
AAK driving the Sustainable Palm Oil challenge General approach - AAK is actively promoting RSPO certified oil • AAK was the first to import segregated certified sustainable palm oil (CSPO) to Europe in 2008. • Certificates available via GreenPalm LTD. Trading platform developed by AAK and endorsed
Slide 34: Sheanut oil - key raw material for chocolate and cosmetic oils
Sheanut oil- key raw material for chocolate and cosmetic oils
Slide 35: Shea belt in West Africa
Shea belt in West Africa In cooperation with United Nations we are working to develop living conditions for local population through: Micro-credits that allow for better development in the villages. Multi-functional platforms to make daily household work easier and less time consuming. More direct c
Slide 36: AAK in West Africa
AAK in West Africa • Activities in 7 different countries • Benin • Burkina Faso • Togo • Ghana • Ivory Coast • Mali • Nigeria. Laboratories and warehouses All these countries are among the poorest countries in the world. AAK Capital Market Day - 10 November 2010
Slide 37: CSR - key issues for AAK
CSR- key issues for AAK Sustainability Report Organic Rapeseed Oil Palm oil Sustainability • Roundtable for Sustainable Palm Oil (RSPO) • GreenPalm certificates Shea • Continue work to develop living conditions in shea collecting villages. AAK Capital Market Day - 10 November 2010
Slide 38: Capital Market Day – Dairy Fat Alternatives (DFA)
Renald Mackintosh Capital Market Day – 10 November 2010 Dairy Fat Alternatives (DFA)
Slide 39: DFA - Agenda
DFA - Agenda Dairy Fat Alternatives - DFA Market situation Why use Dairy Fat Alternatives Dairy Fat Alternatives applications AAK Capital Market Day - 10 November 2010
Slide 40: Dairy Fat Alternatives - DFA
Dairy Fat Alternatives - DFA Vegetable fat is complementary to dairy fat, and is not in competition. Vegetable fat blends are used to partially or wholly replace milk fat in dairy applications. Volumes Sales Operating profit DFA AAK Capital Market Day - 10 November 2010
Slide 41: World Dairy Market size ('000 tonnes)
World Dairy Market size (´000 tonnes) excl milk 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Euromonitor AAK Capital Market Day - 10 November 2010
Slide 42: EU-27 Butter production
EU-27 Butter production 2200 2100 2000 kMT 1900 1800 2001 2005 P2010 P2015 Decrease of dairy cows • 27 613 head (´000) in year 2000 • 23 900 head (´000) in year 2009 Supply decrease and demand increase Leads to disappearance of public stock by 2012 Source: IDF World dairy situation 2009, EU commissi
Slide 43: World butter prices USD/MT
World butter prices USD/MT 4500 4000 3500 3000 2500 2000 1500 USD/MT 1000 500 0 Aug Apr Okt Apr Jun Sep Feb Mar Jun Sep Feb Dec Maj Nov Nov Jul 2010 Jul 2003 Jan 2008 Jan Source: USDA AMS AAK Capital Market Day - 10 November 2010
Slide 44: DFA - Possibilities
DFA - Possibilities Clean and neutral taste The same production equipment can be used No seasonal variations in supply Lower raw material cost The same or improved product properties Improved nutritional properties AAK Capital Market Day - 10 November 2010
Slide 45: DFA - Health concept
DFA - Health concept With DFA you can: Decrease Saturated fat Decrease Trans fat Decrease cholesterol content AAK Capital Market Day - 10 November 2010
Slide 46: Main DFA application areas
Main DFA application areas Butter-blends Whipping cream Cheese Cultured products Ice cream AAK Capital Market Day - 10 November 2010
Slide 47: DFA - Butter blends
DFA - Butter blends Advantages and Possibilities No seasonal variation Consistency can be tailor made Improved spreadability of butter-blends Independent of the ratio between milk fat and vegetable fat AAK Capital Market Day - 10 November 2010
Slide 48: DFA - whipping cream
DFA - whipping cream New properties Excellent physical properties • Overrun • Foam stiffness • Shape retention Lower fat content Akotop NH100 No hydrogenated components Excellent mouth feel Perfect functionality (overrun, stability) AAK Capital Market Day - 10 November 2010
Slide 49: DFA – Cheese
DFA – Cheese AAK experience Ripened cheese Feta cheese Fresh cheese Pizza cheese Processed cheese AAK Capital Market Day - 10 November 2010
Slide 50: DFA - Cheese
DFA - Cheese Advantages and possibilities Lower cost Health profile Same product properties Same production equipment can be used New product properties can be developed AAK Capital Market Day - 10 November 2010
Slide 51: DFA - Cultured products
DFA - Cultured products Yoghurt Kefir Smetana Sour cream Crème Fraîche AAK Capital Market Day - 10 November 2010
Slide 52: DFA - Ice cream fat
DFA - Ice cream fat Correct balance between solid and liquid fat Improved nutritional profile Improved properties - no shrinkage Neutral taste Akomix LS Content of Saturated Fatty Acids (SAFA) is low. Specific Fatty Acid Composition (FAC). Solid Fat Content (SFC) in combination with cr
Slide 53: DFA - Invest for the future
DFA - Invest for the future DFA segment will grow for the future by offering • Consistent supply • Improved functionality • Lower cost • Improved health profile • Total concept AAK Capital Market Day - 10 November 2010
Slide 54: Capital Market Day – Baby Food
Renald Mackintosh Capital Market Day – 10 November 2010 Baby Food
Slide 55: Global Baby Food Retail Value Sales by Category 2009
Global Baby Food Retail Value Sales by Category 2009 9000 7000 US$ 5000 million 3000 1000 -1000 Source: Euromonitor International AAK Capital Market Day - 10 November 2010
Slide 56: Babyfood Industry
Babyfood Industry 1.6 million MT/yr Infant formula ~ 400 000 MT/yr Oils & Fats ingredients. Consolidation – 5 players hold 67 % of the world market. 20 largest companies have 83 % of the total market. China 20 % of the World Market in value. Mature markets grow with up to 5 % annually and emerging m
Slide 57: Growth of Oils in infant formula's
Growth of Oils in infant formula’s 2007-2009 +10% -9% +5% +25% +17% +6% +0% Global growth +11% Source: Calculated from Euromonitor data AAK Capital Market Day - 10 November 2010
Slide 58: Infant formula's – the product
Infant formula’s – the product Spray dried powder or ”ready to eat” emulsion with milk protein, vegetable oils and micronutrients (vitamins, minerals, amino acids etc) Target is to mimic human breast milk as closely as possible. Vegetable oils is 25-30 % by weight and 50 % of calories Vegetable oils
Slide 59: Structured triglycerides for infants
Structured triglycerides for infants - example - Vegetable oil Breast milk C16:0 X X C16:0 X X AAK Capital Market Day - 10 November 2010
Slide 60: InFat™
InFat™ Saturated Ensuring smooth digestion and optimal skeleton development by increased Calcium, fat, and Unsaturated energy uptake. Vegetable oil Human Milk = InFat™ S X Enzymatic U process C16:0 S X New state of the art factory for InFat production started in August 2008 in Karlshamn. AAK Capital
Slide 61: AAK product range
AAK product range Blends of vegetable oils – Akonino - Fatty acid composition matching mothers milk but triglyceride composition different. InFat - Blend of oils with special produced component • Enzymatic process. • Also triglyceride composition close to mothers milk. • Developed in cooperation w
Slide 62: Customer demands
Customer demands Defined fatty acid (and sometimes triglyceride) composition mostly specified by customer- narrow specifications. Highest Food Safety standards Highest Quality – oxidation and taste stability Flexibility and on-time deliveries Technical support - Technical dialogue Competitive pricin
Slide 63: AAK well positioned
AAK well positioned AAK is well placed to serve the demanding customers in the infant formula segment Top quality standards Multi Stock factories Strong focus on food safety High technical competence Special processing facilities Excellent Supply Chain Excellent Scientific Network and Partnership st
Slide 64: Q&A
Q&A